Document:

sec document

                                                                   Exhibit 10.12

                          SP ACQUISITION HOLDINGS, INC.

                            FOUNDER'S UNITS AGREEMENT

      THIS AGREEMENT (this "AGREEMENT"), dated as of August 8, 2007, is entered
into by and among SP Acquisition Holdings, Inc., a Delaware corporation (the
"COMPANY"), SP Acq LLC, a Delaware limited liability company (the "INITIAL
FOUNDER"), Steel Partners II, L.P., a Delaware limited partnership ("SP II"),
Anthony Bergamo, Ronald LaBow, Howard M. Lorber, Leonard Toboroff and S.
Nicholas Walker (each a "FOUNDER" and collectively, together with the Initial
Founder and SP II, the "FOUNDERS").

                                   WITNESSETH

      WHEREAS, the Founders in aggregate hold 7,500,000 units (the "UNITS")
consisting of one share of the Company's common stock, par value $0.001 per
share (the "SHARES") and one warrant to purchase one share of common stock (the
"WARRANTS");

      WHEREAS, the Company has filed a registration statement on Form S-1 (File
No. 333-142696) (the "REGISTRATION STATEMENT") for its initial public offering
of Units (the "IPO");

      WHEREAS, the Company may decide to increase or decrease the number of
Units issued in the IPO;

      WHEREAS, the Company and the Founders confirm their understanding that the
Shares being sold to the public as part of the Units shall represent
approximately 80% of the Company's outstanding share capital following
consummation of the IPO and any exercise of the underwriters' overallotment
option (such percentage, the "PUBLIC FLOAT") regardless of whether the number of
Units issued in the IPO are increased or decreased;

      WHEREAS, the Company may decide to increase or decrease the number of
Units issued in the IPO;

      NOW THEREFORE, in consideration of the mutual promises contained in this
Agreement and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties to this Agreement hereby agree as
follows:

      Section 1. ADJUSTMENT FOR OVER-ALLOTMENT OPTION EXERCISE.

      (A) The Company hereby agrees with each of the Founders, that it will
declare and pay to its stockholders a dividend of Units (the "OVER-ALLOTMENT
ADJUSTMENT UNITS"), so that the number of Units the Company sells to the public
in the IPO including as a result of the exercise of the underwriters'
over-allotment option will maintain the Public Float. Each of the Founders
(other than the Initial Founder) hereby irrevocably assigns to the Initial
Founder, all Over-Allotment Adjustment Units which it has the right to receive
pursuant to such dividend. Unless otherwise agreed to by the Initial Founder,
each of the Founders agrees to take any and all action reasonably requested by
the Company or the Initial Founder necessary to effect such assignment; PROVIDED
that neither the Founders nor the Company shall make or receive any cash payment
in respect of any such assignment.

      (B) The Initial Founder agrees to deposit in escrow all of the
Over-Allotment Adjustment Units it receives from the Company and from the other
Founders pursuant to the escrow agreement dated as of _________, 2007 among the
Initial Founder and Continental Stock Transfer & Trust Company, as escrow agent
(the "ESCROW AGREEMENT").

      Section 2. INITIAL FOUNDER'S UNITS ADJUSTMENT. Each of the Founders hereby
agrees with the Company, and the Company hereby agrees with each of the
Founders, that if the number of Units the Company offers to the public in the
IPO is increased or decreased from the number shown in the Registration
Statement filed with the Securities and Exchange Commission as of the date
hereof, then the number of Units held by the Initial Founder immediately prior
to consummation of the IPO will be adjusted in the same proportion as the
increase or decrease in the Units offered in the IPO including the Units subject
to the underwriters' overallotment option in order to maintain the Public Float.
Such increase or decrease, if any, shall be effected by dividend or surrender
and cancellation of certificates evidencing such Initial Founder's Units, or
such other manner as elected by the Company in its sole discretion. Such
increase or decrease, if any, in the case of each of the Founders, other than to
the Initial Founder, shall be governed by the terms of that certain Founder's
Units and Founder's Additional Warrants Purchase Agreement, dated as of June __,
2007 (the "DIRECTOR PURCHASE AGREEMENT") by and among the Company, the Initial
Founder, Anthony Bergamo, Ronald LaBow, Howard M. Lorber, Leonard Toboroff and
S. Nicholas Walker (each individual a "PURCHASER" and collectively the
"PURCHASERS") in the case of Purchasers and that certain Founder's Units
Purchase Agreement, dated as of March 30, 2007 (the "SP II PURCHASE AGREEMENT")
by and among the Company, the Initial Founder and SP II in the case of SP II.
Each of the Founders agrees to take any and all action reasonably requested by
the Company necessary to effect such adjustment; PROVIDED that neither the
Founders nor the Company shall make or receive any cash payment in respect of
any such adjustment.

      Section 3. FURTHER AGREEMENTS OF THE FOUNDERS.

      (A) Each Founder severally and not jointly acknowledges and agrees that
any additional Units it may acquire pursuant to Section 1 or Section 2 of this
Agreement (A) shall be subject to the voting, waiver of liquidation, transfer
restrictions and forfeiture conditions set forth in the Purchase Agreement,
dated as of March 22, 2007 (in the case of the Initial Founder), the SP II
Purchase Agreement (in the case of SP II) and the Director Purchase Agreement
dated as of June ___, 2007 (in the case of Anthony Bergamo, Ronald LaBow, Howard
M. Lorber, Leonard Toboroff and S. Nicholas Walker), and (B) shall bear the same
legend as the Founder's Units held on the date hereof. In addition, in the event
the underwriters' over-allotment option is not exercised in whole or in part,
any Over-Allotment Adjustment Units issued pursuant hereto shall be subject to
the forfeiture provisions set forth in the Escrow Agreement.

      (B) Each of the Initial Founder and SP II agrees that notwithstanding the
definition of "Permitted Transferees" contained in the Purchase Agreement or SP
II Purchase Agreement, as applicable, it shall not transfer any Founder's Units,
or any shares of common stock or warrants included in such Founder's Units
(including the shares of common stock underlying such warrants) to its
respective limited partners or members in their capacity as such limited
partners or members. Notwithstanding the foregoing, in no event shall the
restrictions contained in this Section 3B continue beyond one year after the
Company completes its initial business combination.

      Section 4. MISCELLANEOUS.

      (A) SUCCESSORS AND ASSIGNS. Except as otherwise expressly provided herein,
all covenants and agreements contained in this Agreement by or on behalf of any
of the parties hereto shall bind and inure to the benefit of the respective
successors and assigns of the parties hereto whether so expressed or not.
Notwithstanding the foregoing or anything to the contrary herein, the parties
may not assign this Agreement.

      (B) SEVERABILITY. Whenever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be prohibited
by or invalid under applicable law, such provision shall be ineffective only to
the extent of such prohibition or invalidity, without invalidating the remainder
of this Agreement.

      (C) COUNTERPARTS. This Agreement may be executed in counterparts, all of
which taken together shall constitute one and the same Agreement.

      (D) GOVERNING LAW. This Agreement shall be deemed to be a contract made
under the laws of the State of New York and for all purposes shall be construed
in accordance with the internal laws of said State. The parties agree that, all
actions and proceedings arising out of this Agreement or any of the transactions
contemplated hereby, shall be brought in the United States District Court for
the Southern District of New York or in a New York State Court in the County of
New York and that, in connection with any such action or proceeding, submit to
the jurisdiction of, and venue in, such court. Each of the parties hereto also
irrevocably waives all right to trial by jury in any action, proceeding or
counterclaim arising out of this Agreement or the transactions contemplated
hereby.

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
date first written above.

                                             ANTHONY BERGAMO
By:
    -----------------------------------
    Warren G. Lichtenstein,                  -----------------------------------
    Chairman of the Board of
    Directors, President and Chief
    Executive Officer
                                             RONALD LABOW

SP ACQ LLC
                                             -----------------------------------
By:
    -----------------------------------
    Warren G. Lichtenstein,
    Managing Member                          HOWARD M. LORBER

STEEL PARTNERS II, L.P.                      -----------------------------------
By: Steel Partners, L.L.C.
    its General Partner

By:                                          LEONARD TOBOROFF
    -----------------------------------
    Warren G. Lichtenstein
    Managing Member                          -----------------------------------

                                             S. NICHOLAS WALKER

                                             -----------------------------------EX-4.7

 

 

CHARTER COMMUNICATIONS, INC.

and

THE BANK OF NEW YORK TRUST COMPANY, N.A.,

as Trustee

 

INDENTURE

Dated as of October [ ], 2007

 

6.50% Convertible Senior Notes due 2027

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	PAGE
	ARTICLE 1
	 	 	 	 
	Definitions and Incorporation by Reference
	 	 	 	 
	 
	 	 	 	 
	Section 1.01 . Definitions
	 	 	1	 
	Section 1.02 . Other Definitions
	 	 	9	 
	Section 1.03 . Incorporation by Reference of Trust Indenture Act
	 	 	10	 
	Section 1.04 . Rules of Construction
	 	 	10	 
	 
	 	 	 	 
	ARTICLE 2
	 	 	 	 
	The Notes
	 	 	 	 
	 
	 	 	 	 
	Section 2.01 . Form and Dating
	 	 	11	 
	Section 2.02 . Execution and Authentication
	 	 	11	 
	Section 2.03 . Registrar; Conversion Agent; and Paying Agent
	 	 	12	 
	Section 2.04 . Paying Agent to Hold Money in Trust
	 	 	13	 
	Section 2.05 . Holder Lists
	 	 	13	 
	Section 2.06 . Global Notes; Non-global Notes; Book-Entry Provisions
	 	 	13	 
	Section 2.07 . Registration; Registration of Transfer and Exchange; Restrictions on Transfer
	 	 	15	 
	Section 2.08 . Replacement Notes
	 	 	18	 
	Section 2.09 . Outstanding Notes
	 	 	18	 
	Section 2.10 . Treasury Notes
	 	 	19	 
	Section 2.11 . Temporary Notes
	 	 	19	 
	Section 2.12 . Cancellation
	 	 	19	 
	Section 2.13 . Defaulted Interest
	 	 	19	 
	Section 2.14 . Computation of Interest
	 	 	20	 
	Section 2.15 . CUSIP Numbers
	 	 	20	 
	 
	 	 	 	 
	ARTICLE 3
	 	 	 	 
	Redemption And Prepayment
	 	 	 	 
	 
	 	 	 	 
	Section 3.01 . Notices to Trustee
	 	 	20	 
	Section 3.02 . Selection of Notes to Be Redeemed
	 	 	20	 
	Section 3.03 . Notice of Redemption
	 	 	21	 
	Section 3.04 . Effect of Notice of Redemption
	 	 	22	 
	Section 3.05 . Deposit of Redemption Price
	 	 	22	 
	Section 3.06 . Notes Redeemed in Part
	 	 	22	 
	Section 3.07 . Optional Redemption
	 	 	22	 
	Section 3.08 . Mandatory Redemption
	 	 	23	 

i

 

	 	 	 	 	 
	 	 	PAGE
	ARTICLE 4
	 	 	 	 
	Covenants
	 	 	 	 
	 
	 	 	 	 
	Section 4.01 . Payment of Notes
	 	 	23	 
	Section 4.02 . Maintenance of Office or Agency
	 	 	24	 
	Section 4.03 . Reports
	 	 	24	 
	Section 4.04 . Compliance Certificate
	 	 	24	 
	Section 4.05 . Taxes
	 	 	25	 
	Section 4.06 . Stay, Extension and Usury Laws
	 	 	25	 
	Section 4.07 . Corporate Existence
	 	 	25	 
	Section 4.08 . Payments for Consent
	 	 	25	 
	Section 4.09 . Registration and Listing
	 	 	26	 
	Section 4.10 . Delivery of Certain Information
	 	 	26	 
	Section 4.11 . Waiver of Certain Covenants
	 	 	26	 
	Section 4.12 . Calculation of Tax Original Issue Discount
	 	 	27	 
	 
	 	 	 	 
	ARTICLE 5
	 	 	 	 
	Successors
	 	 	 	 
	 
	 	 	 	 
	Section 5.01 . Merger, Consolidation, or Sale of Assets
	 	 	27	 
	Section 5.02 . Successor Corporation Substituted
	 	 	28	 
	 
	 	 	 	 
	ARTICLE 6
	 	 	 	 
	Defaults and Remedies
	 	 	 	 
	 
	 	 	 	 
	Section 6.01 . Events of Default
	 	 	28	 
	Section 6.02 . Acceleration
	 	 	29	 
	Section 6.03 . Defaults and Remedies
	 	 	30	 
	Section 6.04 . Waiver of Existing Defaults
	 	 	30	 
	Section 6.05 . Control by Majority
	 	 	30	 
	Section 6.06 . Limitation on Suits
	 	 	30	 
	Section 6.07 . Rights of Holders of Notes to Receive Payment and to Convert
	 	 	31	 
	Section 6.08 . Collection Suit by Trustee
	 	 	31	 
	Section 6.09 . Trustee May File Proofs of Claim
	 	 	31	 
	Section 6.10 . Priorities
	 	 	32	 
	Section 6.11 . Undertaking for Costs
	 	 	32	 
	 
	 	 	 	 
	ARTICLE 7
	 	 	 	 
	Trustee
	 	 	 	 
	 
	 	 	 	 
	Section 7.01 . Duties of Trustee
	 	 	33	 
	Section 7.02 . Rights of Trustee
	 	 	34	 
	Section 7.03 . Individual Rights of Trustee
	 	 	34	 
	Section 7.04 . Trustee’s Disclaimer
	 	 	35	 
	Section 7.05 . Notice of Defaults
	 	 	35	 
	Section 7.06 . Reports by Trustee to Holders of the Notes
	 	 	35	 
	Section 7.07 . Compensation and Indemnity
	 	 	35	 
	Section 7.08 . Replacement of Trustee
	 	 	36	 
	Section 7.09 . Successor Trustee By Merger, etc.
	 	 	37	 

ii

 

	 	 	 	 	 
	 	 	PAGE
	Section 7.10 . Eligibility; Disqualification
	 	 	37	 
	Section 7.11 . Preferential Collection of Claims Against the Company
	 	 	37	 
	 
	 	 	 	 
	ARTICLE 8
	 	 	 	 
	Meetings of Holders of Notes
	 	 	 	 
	 
	 	 	 	 
	Section 8.01 . Purposes for Which Meetings May be Called
	 	 	38	 
	Section 8.02 . Call, Notice and Place of Meetings
	 	 	38	 
	Section 8.03 . Persons Entitled to Vote at Meetings
	 	 	38	 
	Section 8.04 . Quorum; Action
	 	 	38	 
	Section 8.05 . Determination of Voting Rights; Conduct and Adjournment of Meetings
	 	 	39	 
	Section 8.06 . Counting Votes and Recording Action of Meetings
	 	 	40	 
	 
	 	 	 	 
	ARTICLE 9
	 	 	 	 
	Amendment, Supplement and Waiver
	 	 	 	 
	 
	 	 	 	 
	Section 9.01 . Without Consent of Holders of Notes
	 	 	40	 
	Section 9.02 . With Consent of Holders of Notes
	 	 	41	 
	Section 9.03 . Compliance with Trust Indenture Act
	 	 	43	 
	Section 9.04 . Revocation and Effect of Consents
	 	 	43	 
	Section 9.05 . Notation on or Exchange of Notes
	 	 	43	 
	Section 9.06 . Trustee to Sign Amendments, etc.
	 	 	43	 
	 
	 	 	 	 
	ARTICLE 10
	 	 	 	 
	Conversion Of Notes
	 	 	 	 
	 
	 	 	 	 
	Section 10.01 . Conversion Privilege and Conversion Rate
	 	 	44	 
	Section 10.02 . Exercise of Conversion Privilege
	 	 	45	 
	Section 10.03 . Limitation on Beneficial Ownership
	 	 	47	 
	Section 10.04 . Cash Settlement Option
	 	 	47	 
	Section 10.05 . Fractions of Shares
	 	 	47	 
	Section 10.06 . Exchange in Lieu of Conversion
	 	 	48	 
	Section 10.07 . Adjustment of Conversion Rate
	 	 	48	 
	Section 10.08 . Interest Make Whole Upon Conversion
	 	 	56	 
	Section 10.09 . Notice of Adjustments of Conversion Rate
	 	 	57	 
	Section 10.10 . Notice of Certain Corporate Action
	 	 	57	 
	Section 10.11 . Company to Reserve Common Stock
	 	 	58	 
	Section 10.12 . Taxes on Conversions
	 	 	58	 
	Section 10.13 . Covenant as to Common Stock
	 	 	58	 
	Section 10.14 . Cancellation of Converted Notes
	 	 	59	 
	Section 10.15 . Provision in Case of Consolidation, Merger or Sale of Assets
	 	 	59	 
	Section 10.16 . Responsibility of Trustee for Conversion Provisions
	 	 	60	 
	 
	 	 	 	 
	ARTICLE 11
	 	 	 	 
	Repurchase of Notes at the Option of the Holder upon a fundamental change
	 	 	 	 
	 
	 	 	 	 
	Section 11.01 . Right to Require Repurchase upon a Fundamental Change
	 	 	60	 
	Section 11.02 . Repurchase of Notes at the Option of Holders
	 	 	63	 
	Section 11.03 . Consolidation, Merger, etc.
	 	 	65	 

iii

 

	 	 	 	 	 
	 	 	PAGE
	ARTICLE 12
	 	 	 	 
	Miscellaneous
	 	 	 	 
	 
	 	 	 	 
	Section 12.01 . Trust Indenture Act Controls
	 	 	65	 
	Section 12.02 . Notices
	 	 	66	 
	Section 12.03 . Communication by Holders of Notes with Other Holders of Notes
	 	 	67	 
	Section 12.04 . Certificate and Opinion as to Conditions Precedent
	 	 	67	 
	Section 12.05 . Statements Required in Certificate or Opinion
	 	 	67	 
	Section 12.06 . Tax Treatment of the Notes
	 	 	67	 
	Section 12.07 . Rules by Trustee and Agents
	 	 	68	 
	Section 12.08 . No Personal Liability of Directors, Officers, Employees, Members and Stockholders
	 	 	68	 
	Section 12.09 . Governing Law
	 	 	68	 
	Section 12.10 . No Adverse Interpretation of Other Agreements
	 	 	69	 
	Section 12.11 . Successors
	 	 	69	 
	Section 12.12 . Severability
	 	 	69	 
	Section 12.13 . Counterpart Originals
	 	 	69	 
	Section 12.14 . Table of Contents, Headings, etc.
	 	 	69	 
	 
	 	 	 	 
	ARTICLE 13
	 	 	 	 
	Satisfaction And Discharge
	 	 	 	 
	 
	 	 	 	 
	Section 13.01 . Satisfaction and Discharge of Indenture
	 	 	69	 
	Section 13.02 . Application of Trust Money
	 	 	70	 
	 
	 	 	 	 
	EXHIBIT A
	 	 	A-1	 
	 
	 	 	 	 
	Annex A — Form of Restricted Notes Certificate
	 	 	 	 
	 
	 	 	 	 
	Annex B — Form of Unrestricted Notes Certificate
	 	 	 	 
	 
	 	 	 	 
	Annex C — Form of Surrender Certificate
	 	 	 	 

iv

 

CROSS-REFERENCE TABLE

	 	 	 	 	 
	TIA Section	 	Indenture Section
	310 (a)(1)
	 	 	7.10	 
	(a)(2)
	 	 	7.10	 
	(a)(3)
	 	 	N/A	 
	(a)(4)
	 	 	N/A	 
	(a)(5)
	 	 	N/A	 
	(b)
	 	 	7.10	 
	(c)
	 	 	N/A	 
	311 (a)
	 	 	7.11	 
	(b)
	 	 	7.11	 
	(c)
	 	 	N/A	 
	312 (a)
	 	 	2.05	 
	(b)
	 	 	12.03	 
	(c)
	 	 	12.03	 
	313 (a)
	 	 	7.06	 
	(b)(1)
	 	 	N/A	 
	(b)(2)
	 	 	7.06	 
	(c)
	 	 	7.06	 
	(d)
	 	 	7.06	 
	314 (a)
	 	 	4.03; 4.04	 
	(b)
	 	 	N/A	 
	(c)(1)
	 	 	13.04	 
	(c)(2)
	 	 	13.04	 
	(c)(3)
	 	 	N/A	 
	(d)
	 	 	N/A	 
	(e)
	 	 	13.05	 
	(f)
	 	 	N/A	 
	315 (a)
	 	 	7.01	 
	(b)
	 	 	7.05	 
	(c)
	 	 	7.01	 
	(d)
	 	 	7.01	 
	(e)
	 	 	6.11	 
	316 (a) (last sentence)
	 	 	8.03	 
	(a)(1)(A)
	 	 	6.05	 
	(a)(1)(B)
	 	 	6.04	 
	(a)(2)
	 	 	N/A	 
	(b)
	 	 	6.07	 
	317(a)(1)
	 	 	6.08	 
	(a)(2)
	 	 	6.09	 
	(b)
	 	 	2.04	 
	318 (a)
	 	 	12.01	 

N/A means Not Applicable

 

			
	Note:	 	This Cross-Reference Table shall not, for any purpose, be deemed to be part of this
Indenture.

v

 

     INDENTURE dated as of October [ ], 2007 among Charter Communications, Inc., a Delaware
corporation (as further defined below, the “Company”), and The Bank of New York Trust Company,
N.A., as trustee (the “Trustee”).

     The Company and the Trustee agree as follows for the benefit of each other and for the equal
and ratable benefit of the Holders of the Notes:

ARTICLE 1

Definitions and Incorporation by Reference

Section 1.01. Definitions.

     “Affiliate” of any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For
purposes of this definition, “control,” as used with respect to any Person, shall mean the
possession, directly or indirectly, of the power to direct or cause the direction of the management
or policies of such Person, whether through the ownership of voting securities, by agreement or
otherwise; provided that beneficial ownership of 10% or more of the Voting Stock of a Person shall
be deemed to be control. For purposes of this definition, the terms “controlling, “controlled by”
and “under common control with” shall have correlative meanings.

     “Agent” means any Registrar, Paying Agent or Conversion Agent.

     “Agent Member” means any member of, or participant in, the Depositary.

     “Allen Affiliate” means any person in which the Principal, directly or indirectly, owns at
least a 50.1% equity interest, provided that the Company, Charter Holdco or any of its subsidiaries
will not be included in such definition.

     “Applicable Procedures” means, with respect to any transfer or transaction involving a Global
Note or beneficial interest therein, the rules and procedures of DTC, in each case to the extent
applicable to such transaction and as in effect from time to time.

     “Bankruptcy Law” means Title 11, U.S. Code or any similar Federal or state law of any
jurisdiction relating to bankruptcy, insolvency, winding up, liquidation, reorganization or relief
of debtors.

     “Beneficial Owner” has the meaning assigned to such term in Section 13(d) of the Exchange Act
and the rules and regulations promulgated thereunder, and the term “Beneficial Ownership” shall
have a correlative meaning.

     “Beneficial Owner Entity” means any entity that is a director or indirect Beneficial Owner of
more than 50% of the total voting power of all shares of an acquirer’s capital stock that are
entitled to vote generally in the election of directors.

     “Board of Directors” means the Board of Directors of the Company or any authorized committee
of the Board of Directors of the Company.

1

 

     “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant
Secretary of the Company to have been duly adopted by the Board of Directors of the Company and to
be in full force and effect on the date of such certification and delivered to the Trustee.

     “Business Day” means any day other than a Legal Holiday.

     “Capital Stock” means:

     (1) in the case of a corporation, corporate stock;

     (2) in the case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate stock;

     (3) in the case of a partnership or limited liability company, partnership or membership
interests (whether general or limited); and

     (4) any other interest (other than any debt obligation) or participation that confers on a
Person the right to receive a share of the profits and losses of, or distributions of assets of,
the issuing Person.

     “Change of Control” means the occurrence of any of the following:

     (1) the consummation of any transaction (including any merger or consolidation) the result of
which is that any “person” or “group” within the meaning of Section 13(d) of the Exchange Act (a
“Section 13 Person”), other than the Principal and the Related Parties, becomes the Beneficial
Owner, directly or indirectly, of more than 35% of the Voting Stock of the Company, measured by
voting power rather than number of shares, unless the Principal and the Related Parties,
collectively, beneficially own, directly or indirectly, a greater percentage of Voting Stock of the
Company, measured by voting power rather than number of shares, than such Section 13 Person;

     (2) the consummation of any transaction or event (whether by means of a liquidation, share
exchange, tender offer, consolidation, recapitalization, reclassification, merger of the Company or
any sale, lease or other transfer of the consolidated assets of the Company and its Subsidiaries)
or a series of related transactions or events pursuant to which the Common Stock is exchanged for,
converted into or constitutes solely the right to receive cash, securities or other
property more than 10% of the fair market value of which consists of cash, securities or other
property that are not, or upon issuance will not be, traded or quoted on any U.S. national
securities exchange;

     (3) the sale, transfer, conveyance, lease or other disposition (including by way of
liquidation or dissolution, but excluding by way of merger or consolidation), in one or a series of
related transactions, of the assets of the Company and its Subsidiaries, substantially as an
entirety, to any Section 13 Person;

     (4) at any time, (i) the Principal or any Allen Affiliates (as defined below) purchases, in a
transaction or series of transactions, shares of Common Stock and, solely as a result of such
purchases, the aggregate number of shares of Common Stock held by the Principal and any Allen

2

 

Affiliates exceeds 70% of the total number of shares of Common Stock issued and outstanding at such
time (including any shares borrowed pursuant to the Share Lending Agreement) and (ii) the Sale
Price of the Common Stock for any five Trading Days within the period of the 10 consecutive Trading
Days immediately after the later of (x) the last date of such purchases or (y) the public
announcement of such purchases, is less than 100% of the Conversion Price of the Notes in effect on
each of those Trading Days (for purposes of this clause (4), a purchase will not include any
transaction whereby shares of Common Stock are acquired by the Principal or any Allen Affiliate as
a result of service as a director on the Board of Directors or the exchange and conversion of
membership units of Charter Holdco for and into shares of Common Stock or the conversion of shares
of the Company’s Class B Common Stock, par value $.001 per share, into shares of Common Stock or
issued in exchange (by merger or otherwise) for shares of a Person that holds units of Charter
Holdco; the calculation of the number of shares of Common Stock held by the Principal and the Allen
Affiliates will not include securities exchangeable or convertible into shares of Common Stock.

     (5) after the Issue Date, the first day on which a majority of the members of the Board of
Directors of the Company are not Continuing Directors; or

     (6) the adoption of a plan relating to the liquidation or dissolution of the Company.

     “Charter Holdco” means Charter Communications Holding Company LLC.

     “Commission” or “SEC” means the Securities and Exchange Commission.

     “common stock” includes any stock of any class of capital stock which has no preference in
respect of dividends or of amounts payable in the event of
any voluntary or involuntary liquidation, dissolution or winding up of the issuer thereof and
which is not subject to redemption by the issuer thereof.

     “Common Stock” means the Class A Common Stock, par value $.001 per share, of the Company
authorized at the date of this instrument as originally executed. Subject to the provisions of
Section 10.14, shares issuable on conversion or repurchase of Notes shall include only shares of
Common Stock or shares of any class or classes of common stock resulting from any reclassification
or reclassifications thereof; provided, however, that if at any time there shall be more than one
such resulting class, the shares so issuable on conversion of Notes shall include shares of all
such classes, and the shares of each such class then so issuable shall be substantially in the
proportion that the total number of shares of such class resulting from all such reclassifications
bears to the total number of shares of all such classes resulting from all such reclassifications.

     “Company” means the Person named as the “Company” in the first paragraph of this instrument
until a successor Person shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Company” shall mean such successor Person.

     “Continuing Directors” means, as of any date of determination, any member of the Board of
Directors of the Company who:

     (1) was a member of the Board of Directors on the Issue Date; or

3

 

     (2) was nominated for election or elected to the Board of Directors with the approval of a
majority of the Continuing Directors who were members of the Board of Directors at the time of such
nomination or election or whose election or appointment was previously so approved.

     “Conversion Agent” means any Person authorized by the Company to convert Notes in accordance
with Article 10. The Company has initially appointed the Trustee as its Conversion Agent pursuant
to Section 2.03 hereof.

     “Conversion Average Price” of Common Stock means, with respect any conversion of Notes, the
average of the Sale Prices of the Common Stock over the 20 Trading Day period (i) with respect to
a Conversion Date occurring during the period beginning on the date the Company gives a notice of
redemption and ending on the close of business on the Business Day prior to the applicable
Redemption Date, beginning on the Redemption Date; and (ii) in all other cases, beginning on the
third scheduled Trading Day immediately following the applicable Conversion Date for such
conversion of Notes.

     “Conversion Price” as of any date shall equal U.S. $1,000 divided by the Conversion Rate in
effect on such date (rounded to the nearest cent).

     “Conversion Rate” has the meaning specified in Section 10.01(a) hereof.

     “Corporate Trust Office of the Trustee” shall be at the address of the Trustee specified in
Section 12.02 or such other address as to which the Trustee may give notice to the Company.

     “Default” means any event that is, or with the passage of time or the giving of notice or both
would be, an Event of Default.

     “Depositary” means, with respect to any Notes (including any Global Notes), a clearing agency
that is registered under the Exchange Act and is designated by the Company to act as Depositary for
such Notes (or any successor securities clearing agency so registered).

     “DTC” means The Depository Trust Company, a New York corporation.

     “Effective Date” means the date of consummation or effectiveness of a transaction described in
clause (2) of the definition of Change of Control.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Exchange
Offer Prospectus” means the final exchange offer prospectus, dated [ ], 2007,
prepared in connection with the offering of the Notes.

     “Fundamental Change” means a Change of Control or a Termination of Trading

     “Global Note” means a Note that is registered in the Note Register for the Notes in the name
of a Depositary or a nominee thereof.

     “Guarantee” or “guarantee” means a guarantee other than by endorsement of negotiable
instruments for collection in the ordinary course of business, direct or indirect, in any manner
including by way of a pledge of assets or through letters of credit or reimbursement

4

 

agreements in
respect thereof, of all or any part of any Indebtedness, measured as the lesser of the aggregate
outstanding amount of the Indebtedness so guaranteed and the face amount of the Guarantee.

     “Holder” means the Person in whose name the Note is registered in the Note Register.

     “Indebtedness” means, with respect to any specified Person, any indebtedness of such Person,
whether or not contingent:

     (1) in respect of borrowed money;

     (2) evidenced by bonds, notes, debentures or similar instruments; or

     (3) representing capital lease obligations.

The amount of any Indebtedness outstanding as of any date shall be (i) the accreted value thereof,
in the case of any Indebtedness issued with original issue discount; and (ii) the principal amount
(or portion of the discounted rental stream attributable to principal in the case of capitalized
leases) thereof, together with any interest thereon that is more than 30 days past due, in the case
of any other Indebtedness.

     “Indenture” means this Indenture, as amended or supplemented from time to time.

     “Interest Payment Date” means the Stated Maturity of an installment of interest on the Notes.

     “Issue Date” means October [ ], 2007.

     “Legal Holiday”, when used with respect to any place of payment or Place of Conversion, as the
case may be, means a Saturday, a Sunday or a day on which banking institutions in The City of New
York, at such place of payment or Place of Conversion, as the case may be, are authorized by law,
regulation or executive order to remain closed. If a payment date is a Legal Holiday at a place of
payment, payment may be made at that place on the next succeeding day that is not a Legal Holiday,
and no interest shall accrue on such payment for the intervening period.

     “Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest
or encumbrance of any kind in respect of such asset given to secure indebtedness, whether or not
filed, recorded or otherwise perfected under applicable law (including any conditional sale or
other title retention agreement, any lease in the nature thereof, any option or other agreement to
sell or give a security interest in and any filing of or agreement to give any financing statement
under the Uniform Commercial Code (or equivalent statutes) of any jurisdiction with respect to any
such lien, pledge, charge or security interest).

     “Maturity”, when used with respect to any Notes, means the date on which the Principal Amount
of such Notes becomes due and payable as therein or herein provided, whether at the Stated Maturity
or by declaration of acceleration, call for redemption, exercise of the repurchase right set forth
in Article 11 or otherwise.

5

 

     “Non-global Note” means a Note that is in definitive, fully registered form, without interest
coupons, and that is not a Global Note.

     “Notes” means the Company’s 6.50% Convertible Senior Notes due 2027 and more particularly
means any Notes authenticated and delivered under this Indenture.

     “Officer” means, with respect to any Person, the Chairman of the Board, the Chief Executive
Officer, the President, the Chief Operating Officer, the Chief Financial Officer, the Treasurer,
any Assistant Treasurer, the Controller, the Secretary or any Vice-President of such Person.

     “Officers’ Certificate” means a certificate signed on behalf of the Company by two Officers of
the Company, one of whom must be the principal executive officer, the chief financial officer or
the treasurer of the Company that meets the requirements of Section 12.05.

     “Opinion of Counsel” means an opinion from legal counsel who is reasonably acceptable to the
Trustee, that meets the requirements of Section 12.05. The counsel may be an employee of or counsel
to the Company or any Subsidiary of the Company.

     “Person” means any individual, corporation, partnership, joint venture, association, limited
liability company, joint stock company, trust, unincorporated organization, government or agency or
political subdivision thereof or any other entity.

     “Place of Conversion” means any city in which any Conversion Agent is located.

     “Predecessor Note” of any particular Note means every previous Note evidencing all or a
portion of the same debt as that evidenced by such particular Note; and, for the purposes of this
definition, any Note authenticated and delivered under Section 2.08 in exchange for or in lieu of a
mutilated, destroyed, lost or stolen Note shall be deemed to evidence the same debt as the
mutilated, destroyed, lost or stolen Note.

     “Principal” means Paul G. Allen.

     “Principal Amount” of a Note means the stated principal amount as set forth on the face of
such Note.

     “Qualified Institutional Buyer” shall mean a “qualified institutional buyer” as defined in
Rule 144A.

     “Record Date Period” means the period from the close of business of any Regular Record Date
next preceding any Interest Payment Date to the opening of business on such Interest Payment Date.

     “Redemption Date”, when used with respect to any Note to be redeemed, means the date fixed for
redemption by or pursuant to this Indenture.

     “Redemption Make Whole Amount” has the meaning specified in Section 10.08.

     “Redemption Price” has the meaning specified in Section 3.07.

6

 

     “Regular Record Date” for interest payable in respect of any Note on any Interest Payment Date
means the March 15 or September 15 (whether or not a Business Day), as the case may be, next
preceding such Interest Payment Date.

     “Related Party” means:

     (1) the spouse or an immediate family member, estate or heir of the Principal; or

     (2) any trust, corporation, partnership or other entity, the beneficiaries, stockholders,
partners, owners or Persons beneficially holding an 80% or more controlling interest of which
consist of the Principal and/or such other Persons referred to in the immediately preceding clause
(1) or this clause (2).

     “Responsible Officer” when used with respect to the Trustee, means any officer within the
Corporate Trust Administration of the Trustee (or any successor group of the Trustee) with direct
responsibility for the administration of this Indenture and also means, with respect to a
particular corporate trust matter, any other officer to whom such matter is referred because of his
knowledge of and familiarity with the particular subject.

     “Restricted Non-global Note” means a Restricted Note other than a Global Note.

     “Restricted Notes” means all Notes required pursuant to Section 2.07(3) to bear any Restricted
Notes Legend.

     “Restricted Notes Certificate” means a certificate substantially in the form set forth in
Annex A.

     “Restricted Notes Legend” means, collectively, the legends substantially in the forms of the
legends required in the form of Note set forth in Exhibit A to be placed upon each Restricted Note.

     “Rule 144” means Rule 144 promulgated under the Securities Act.

     “Rule 144A” means Rule 144A promulgated under the Securities Act.

     “Sale Price” of Common Stock or any other security on any date means the closing sale price
per share (or if no closing sale price is reported, the average of the bid and asked prices or, if
more than one in either case, the average of the average bid and the average asked prices) on that
date as reported in transactions for the principal U.S. securities exchange or market on which the
Common Stock or such other security is traded or quoted. The Sale Price will be determined without
reference to after-hours or extended market trading. If the Common Stock or such other security is
not listed for trading or quoted on a U.S. national or
regional securities exchange or market on the relevant date, the Sale Price will be the last
quoted bid price for the Common Stock or such other security in the Nasdaq Capital Market or in the
over-the-counter market on the relevant date as reported by Pink Sheets LLC or any similar
organization. If the Common Stock or such other security is not so quoted, the Sale Price will be
the average of the mid-point of the last bid and asked prices for the Common Stock or such other
security on the relevant date from each of at least three nationally recognized independent
investment banking firms selected by the Company for this purpose.

7

 

     “Securities Act” means the Securities Act of 1933, as amended.

     “Share Lending Agreement” means the Share Lending Agreement, dated as of November 22, 2004,
between the Company and Citigroup Global Markets Limited, as such agreement may be amended from
time to time.

     “Significant Subsidiary” means any Subsidiary of the Company which is a Significant Subsidiary
as defined in Rule 1-02(w) of Regulation S-X under the Exchange Act.

     “Stated Maturity”, when used with respect to the Principal Amount of any Note or the payment
of interest on any Note, means the date specified in such Note as the fixed date on which the
Principal Amount of such Note or such installment of interest is due and payable.

     “Stock Price” means the price per share of Common Stock paid in connection with a corporate
transaction described in clause (2) of the definition of Change of Control, which shall be equal to
(i) if holders of Common Stock receive only cash in such corporate transaction, the cash amount
paid per share of Common Stock and (ii) in all other cases, the average of the Sale Prices of
Common Stock on the last ten Trading Days up to but not including the Effective Date.

     “Subsidiary” means, with respect to any Person:

     (1) any corporation, association or other business entity of which at least 50% of the total
voting power of shares of Capital Stock entitled (without regard to the occurrence of any
contingency) to vote in the election of directors, managers or trustees thereof is at the time
owned or controlled, directly or indirectly, by such Person or one or more of the other
Subsidiaries of that Person (or a combination thereof) and, in the case of any such entity of which
50% of the total voting power of shares of Capital Stock is so owned or controlled by such Person
or one or more of the other Subsidiaries of such Person, such Person and its Subsidiaries also has
the right to control the management of such entity pursuant to contract or otherwise; and

     (2) any partnership (a) the sole general partner or the managing general partner of which is
such Person or a Subsidiary of such Person or (b) the only general partners of which are such
Person or of one or more Subsidiaries of such Person (or any combination thereof).

     “Successor Note” of any particular Note means every Note issued after, and evidencing all or a
portion of the same debt as that evidenced by, such particular Note; and, for the purposes of this
definition, any Note authenticated and delivered under Section 2.08 in exchange for or in lieu of a
mutilated, destroyed, lost or stolen Note shall be deemed to evidence the same debt as the
mutilated, destroyed, lost or stolen Note.

     “Surrender Certificate” means a certificate substantially in the form set forth in Annex C.

     “Tax Original Issue Discount” means the amount of ordinary interest income on a Note that must
be accrued as original issue discount for United States federal income tax purposes pursuant to
Treasury regulation section 1.1275-4 or any successor provision.

     “Termination of Trading” will be deemed to have occurred if the Common Stock (or other common
stock into which the Notes are convertible) is neither listed for trading or quoted

8

 

on a U.S. national securities exchange; provided that a Termination of Trading will not occur
so long as the Common Stock is listed for trading or quoted on the Nasdaq Capital Market or quoted
bid prices for the Common Stock in the over-the-counter market are reported by Pinks Sheets LLC or
any similar organization.

     “TIA” means the Trust Indenture Act of 1939 (15 U.S.C. ss. 77aaa-77bbbb) as in effect on the
date on which this Indenture is qualified under the TIA; provided, however, that in the event the
Trust Indenture Act of 1939 is amended after such date, then “TIA” means, to the extent required by
such amendment, the Trust Indenture Act of 1939 as so amended.

     “Trading Day” means a day during which trading in securities generally occurs on the principal
U.S. national or regional securities exchange or market on which the Common Stock is then listed or
quoted or, if the Common Stock is not then listed or quoted on a national or regional securities
exchange or market, on the principal other market on which the Common Stock is traded.

     “Trustee” means The Bank of New York Trust Company, N.A. until a successor replaces The Bank
of New York Trust Company, N.A. in accordance with the applicable provisions of this Indenture and
thereafter means the successor serving hereunder.

     “Unrestricted Notes Certificate” means a certificate substantially in the form set forth in
Annex B.

     “Voting Stock” of any Person as of any date means the Capital Stock of such Person that is at
the time entitled to vote in the election of the board of directors of such Person.

     Section 1.02. Other Definitions.

	 	 	 	 	 
	 	 	Defined in
	Term	 	Section
	“Accepted Purchased Shares”
	 	 	10.07	(g)
	“Additional Notes”
	 	 	2.02	 
	“Additional Shares”
	 	 	10.01	(b)
	“Authentication Order”
	 	 	2.02	 
	“Constituent Person”
	 	 	10.15	 
	“Conversion Date”
	 	 	10.02	(a)
	“Conversion Rate”
	 	 	10.01	(a)
	“Conversion Settlement Date”
	 	 	10.01	(a)
	“Current Market Price”
	 	 	10.07	(h)
	“Event of Default”
	 	 	6.01	 
	“Ex-date”
	 	 	10.07	(i)
	“Expiration Date”
	 	 	10.07	(f)
	“fair market value”
	 	 	10.07	(j)
	“Five Year Repurchase Date”
	 	 	11.02	 
	“Five Year Repurchase Notice”
	 	 	11.02	 
	“Fundamental Change Repurchase Date”
	 	 	11.01	(b)
	“Fundamental Change Repurchase Price”
	 	 	11.01	(a)
	“Initial Notes”
	 	 	2.02	 
	“Non-Electing Share”
	 	 	10.15	 

9

 

	 	 	 	 	 
	 	 	Defined in
	Term	 	Section
	“Note Register”
	 	 	2.03	 
	“Offer Expiration Date”
	 	 	10.07	(g)
	“Paying Agent”
	 	 	2.03	 
	“Payment Default”
	 	 	6.01	 
	“Purchased Shares”
	 	 	10.07	(f)
	“Registrar”
	 	 	2.03	 
	“Restricted Global Note”
	 	 	2.01	 
	“Rule 144A Information”
	 	 	4.10	 
	“Specified Percentage”
	 	 	10.03	 
	“Spin-Off”
	 	 	10.07	(e)
	“Statistical Release”
	 	 	10.08	 
	“Trigger Event”
	 	 	10.07	(d)

     Section 1.03. Incorporation by Reference of Trust Indenture Act.

     Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by
reference in and made a part of this Indenture. The following TIA terms used in this Indenture have
the following meanings:

     “indenture securities” means the Notes;

     “indenture security Holder” means a Holder of a Note;

     “indenture to be qualified” means this Indenture;

     “indenture trustee” or “institutional trustee” means the Trustee; and

     “obligor” on the Notes means the Company and any successor obligor upon the Notes.

     All other terms used in this Indenture that are defined by the TIA, defined by TIA reference
to another statute or defined by SEC rule under the TIA have the meanings so assigned to them.

     Section 1.04. Rules of Construction.

     Unless the context otherwise requires:

     (a) a term has the meaning assigned to it;

     (b) an accounting term not otherwise defined has the meaning assigned to it in accordance with
GAAP;

     (c) “or” is not exclusive and “including” means “including without limitation”;

     (d) words in the singular include the plural, and in the plural include the singular;

     (e) provisions apply to successive events and transactions;

10

 

     (f) references to sections of or rules under the Securities Act shall be deemed to include
substitute, replacement of successor sections or rules adopted by the Commission from time to time;

     (g) references to any statute, law, rule or regulation shall be deemed to refer to the same as
from time to time amended and in effect and to any successor statute, law, rule or regulation; and

     (h) references to any contract, agreement or instrument shall mean the same as amended,
modified, supplemented or amended and restated from time to time, in each case, in accordance with
any applicable restrictions contained in this Indenture.

ARTICLE 2

The Notes

     Section 2.01. Form and Dating.

     The Notes and the conversion notices shall be substantially in the form of Exhibit A hereto.
The Notes may have notations, legends or endorsements required by law, stock exchange rule or
usage. Each Note shall be dated the date of its authentication. The Principal Amount of the Notes
shall be in denominations of $1,000 and integral multiples thereof.

     The terms and provisions contained in the Notes shall constitute, and are hereby expressly
made, a part of this Indenture and the Company and the Trustee, by their execution and delivery of
this Indenture, expressly agree to such terms and provisions and to be bound thereby. To the extent
any provision of any Note conflicts with the express provisions of this Indenture, the provisions
of this Indenture shall govern and be controlling.

     Upon their original issuance, Initial Notes shall be issued in the form of one or more Global
Notes in definitive, fully registered form without interest coupons and without the Restricted Note
Legend. Additional Notes shall be issued in the form of one or more Global Notes in definitive,
fully registered form without interest coupons and, unless issued pursuant to an effective
registration statement under the Securities Act, bearing the Restricted Note Legend. Global Notes
bearing the Restricted Note Legend, together with their Successor Notes which are Global Notes, are
collectively herein called the “Restricted Global Notes”. Global Note shall be registered in the
name of DTC, as Depositary, or its nominee and deposited with the Trustee, as custodian for DTC,
for credit by DTC to the respective accounts of beneficial owners of the Notes represented thereby
(or such other accounts as they may direct).

     Section 2.02. Execution and Authentication.

     Two Officers shall sign the Notes for the Company by manual or facsimile signature.

     If an Officer whose signature is on a Note no longer holds that office at the time a Note is
authenticated, the Note shall nevertheless be valid.

11

 

     A Note shall not be valid until authenticated by the manual signature (which may be by
facsimile) of the Trustee. The signature shall be conclusive evidence that the Note has been
authenticated under this Indenture.

     At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Notes executed by the Company to the Trustee for authentication; and the
Trustee shall authenticate and deliver such Notes upon a written order of the Company signed by an
Officer of the Company (an “Authentication Order”). Such Authentication Order shall specify the
amount of Notes to be authenticated and the date on which the Notes are to be authenticated and
whether the Notes are to be issued as one or more Global Notes and such other information as the
Company may include or the Trustee may reasonably request. The aggregate Principal Amount of Notes
that may be outstanding under this Indenture is unlimited; provided that upon initial issuance, the
aggregate principal amount of Notes outstanding shall not exceed $[ ], except as provided
in Section 2.08. The Company, without the consent of the Holders of Notes, may issue additional
Notes (the “Additional Notes”) from time to time having identical terms and conditions as the Notes
originally issued under this Indenture (the “Initial Notes”), except for any difference in the
issue price and interest accrued prior to the issue date of such Additional Notes; provided that
such Additional Notes are fungible with the Initial Notes for United States federal income tax
purposes. The Initial Notes and any Additional Notes shall constitute a single series of debt
securities and, in circumstances in which this Indenture provides for Holders of Notes to vote or
take any action, the Holders of Initial Notes and the Holders of any Additional Notes shall vote or
take such action as a single class.

     The Trustee may appoint an authenticating agent acceptable to the Company to authenticate
Notes. An authenticating agent may authenticate Notes whenever the Trustee may do so. Each
reference in this Indenture to authentication by the Trustee includes authentication by such agent.
An authenticating agent has the same rights as an Agent to deal with Holders or an Affiliate of the
Company.

     Section 2.03. Registrar; Conversion Agent; and Paying Agent.

     The Company shall maintain an office or agency where Notes may be presented for registration
of transfer, exchange, conversion, redemption or repurchase (“Registrar” and with respect to
conversion, “Conversion Agent”) and an office or agency where Notes may be presented for payment
(“Paying Agent”). The Registrar shall keep a register of the Notes and of their transfer, exchange
and conversion (the register maintained in such office, the “Note Register”). The Company may
appoint one or more co-registrars or conversion agents and one or more additional paying agents.
The term “Registrar” includes any co-registrar, the term “Conversion Agent” includes any
co-conversion agent and the term “Paying Agent” includes any additional paying agent. The Company
may change any Paying Agent, Registrar or Conversion Agent without notice to any Holder. The
Company shall promptly notify the Trustee in writing of the name and address of any agent not a
party to this Indenture. If the Company fails to appoint or maintain another entity as Registrar,
Paying Agent or Conversion Agent, the Trustee shall act as such. The Company or any of its
Subsidiaries may act as Paying Agent, Registrar or Conversion Agent.

     The Company initially appoints DTC to act as Depositary with respect to the Global Notes.

12

 

     The Company initially appoints the Trustee to act as the Registrar, Paying Agent and
Conversion Agent and custodian with respect to the Global Notes.

     Section 2.04. Paying Agent to Hold Money in Trust.

     The Company shall require each Paying Agent other than the Trustee to agree in writing that
the Paying Agent shall hold in trust for the benefit of Holders or the Trustee all money held by
the Paying Agent for the payment of the Principal Amount, premium, if any, or interest on the
Notes, and shall notify the Trustee of any default by the Company in making any such payment. While
any such default continues, the Trustee may require a Paying Agent to pay all money held by it to
the Trustee. The Company at any time may require a Paying Agent to pay all money held by it to the
Trustee. Upon payment over to the Trustee, the Paying Agent (if other than the Company or a
Subsidiary) shall have no further liability for the money. If the Company or a Subsidiary acts as
Paying Agent, it shall segregate and hold in a separate trust fund for the benefit of the Holders
all money held by it as Paying Agent. Upon any bankruptcy or reorganization proceedings relating to
the Company, the Trustee shall serve as Paying Agent for the Notes.

     Section 2.05. Holder Lists.

     The Trustee shall preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of all Holders and shall otherwise comply with TIA
ss. 312(a). If the Trustee is not the Registrar, the Company shall furnish to the Trustee at least
seven Business Days before each interest payment date and at such other times as the Trustee may
request in writing, a list in such form and as of such date as the Trustee may reasonably require
of the names and addresses of the Holders of Notes and the Company shall otherwise comply with TIA
ss. 312(a).

     Section 2.06. Global Notes; Non-global Notes; Book-Entry Provisions.

     (a) Global Notes

     (i) Each Global Note authenticated under this Indenture shall be registered in the name
of the Depositary designated by the Company for such Global Note or a nominee thereof and
delivered to such Depositary or a nominee thereof or custodian therefor, and each such
Global Note shall constitute a single Note for all purposes of this Indenture.

     (ii) Notwithstanding any other provisions of this Indenture or the Notes, a Global Note
shall not be exchanged in whole or in part for a Note registered in the name of any Person
other than the Depositary or one or more nominees thereof, provided that a Global Note may
be exchanged for Notes registered in the names of any Person designated by the Depositary in
the event that (A) the Depositary has notified the Company that it is unwilling or unable to
continue as Depositary for such Global Note or such Depositary has ceased to be a “clearing
agency” registered under the Exchange Act, and a successor Depositary is not appointed by
the Company within 90 days, (B) to the extent permitted by the Depositary, the Company, in
its sole discretion, determines at any time that the Notes shall no longer be represented by
Global Notes and shall inform such Depositary of such determination; or (C) there is a
request by or on behalf of the

13

 

Depository in accordance with its customary procedures to exchange an interest in the
Global Notes for Non-global Notes. Any Global Note exchanged pursuant to clause (A) above
shall be so exchanged in whole and not in part, and any Global Note exchanged pursuant to
clause (B) or (C) above may be exchanged in whole or from time to time in part as directed
by the Depositary. Any Note issued in exchange for a Global Note or any portion thereof
shall be a Global Note; provided that any such Note so issued that is registered in the name
of a person other than the Depositary or a nominee thereof shall not be a Global Note.

     (iii) If any Global Note is to be exchanged for other Notes or canceled in whole, it
shall be surrendered by or on behalf of the Depositary or its nominee to the Trustee, as
Note Registrar, for exchange or cancellation, as provided in this Article 2. If any Global
Note is to be exchanged for other Notes or canceled in part, or if another Note is to be
exchanged in whole or in part for a beneficial interest in any Global Note, in each case, as
provided in Section 2.07, then either (A) such Global Note shall be so surrendered for
exchange or cancellation, as provided in this Article 2, or (B) the Principal Amount thereof
shall be reduced or increased by an amount equal to the portion thereof to be so exchanged
or canceled, or equal to the Principal Amount of such other Note to be so exchanged for a
beneficial interest therein, as the case may be, by means of an appropriate adjustment made
on the records of the Trustee, as Registrar, whereupon the Trustee, in accordance with the
Applicable Procedures, shall instruct the Depositary or its authorized representative to
make a corresponding adjustment to its records. Upon any such surrender or adjustment of a
Global Note, the Trustee shall, subject to Section 2.07(c) and as otherwise provided in this
Article 2, authenticate and deliver any Notes issuable in exchange for such Global Note (or
any portion thereof) to or upon the order of, and registered in such names as may be
directed by, the Depositary or its authorized representative. Upon the request of the
Trustee in connection with the occurrence of any of the events specified in the preceding
paragraph, the Company shall promptly make available to the Trustee a reasonable supply of
Notes that are not in the form of Global Notes. The Trustee shall be entitled to rely upon
any order, direction or request of the Depositary or its authorized representative which is
given or made pursuant to this Article 2 if such order, direction or request is given or
made in accordance with the Applicable Procedures.

     (iv) Every Note authenticated and delivered upon registration of transfer of, or in
exchange for or in lieu of, a Global Note or any portion thereof, whether pursuant to this
Article 2 or otherwise, shall be authenticated and delivered in the form of, and shall be, a
registered Global Note, unless such Note is registered in the name of a Person other than
the Depositary for such Global Note or a nominee thereof, in which case such Note shall be
authenticated and delivered in definitive, fully registered form, without interest coupons.

     (v) The Depositary or its nominee, as registered owner of a Global Note, shall be the
Holder of such Global Note for all purposes under the Indenture and the Notes, and owners of
beneficial interests in a Global Note shall hold such interests pursuant to the Applicable
Procedures. Accordingly, any such owner’s beneficial interest in a Global Note shall be
shown only on, and the transfer of such interest shall be effected only through, records
maintained by the Depositary or its nominee or its Agent Members and

14

 

such owners of beneficial interests in a Global Note shall not be considered the owners
or holders thereof.

     (b) Non-global Notes. Notes issued upon the events described in Section 2.06(a)(ii) shall be
in definitive, fully registered form, without interest coupons, and shall bear the Restricted Notes
Legend if and as required by this Indenture.

     Section 2.07. Registration; Registration of Transfer and Exchange; Restrictions on Transfer.

     (a) Upon surrender for registration of transfer of any Note at an office or agency of the
Company designated pursuant to Section 2.03 for such purpose, the Company shall execute, and the
Trustee shall authenticate and deliver, in the name of the designated transferee or transferees,
one or more new Notes of any authorized denominations and of a like aggregate Principal Amount and
bearing such restrictive legends as may be required by this Indenture.

     At the option of the Holder, and subject to the other provisions of this Section 2.07, Notes
may be exchanged for other Notes of any authorized denomination and of a like aggregate Principal
Amount, upon surrender of the Notes to be exchanged at any such office or agency. Whenever any
Notes are so surrendered for exchange, and subject to the other provisions of this Section 2.07,
the Company shall execute, and the Trustee shall authenticate and deliver, the Notes which the
Holder making the exchange is entitled to receive. Every Note presented or surrendered for
registration of transfer or for exchange shall (if so required by the Company or the Registrar) be
duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the
Company, the Trustee and the Registrar duly executed, by the Holder thereof or its attorney duly
authorized in writing.

     All Notes issued upon any registration of transfer or exchange of Notes shall be the legal,
valid and binding obligations of the Company, evidencing the same debt and entitled to the same
benefits under this Indenture as the Notes surrendered upon such registration of transfer or
exchange.

     No service charge shall be made to a Holder for any registration of transfer or exchange of
Notes except as provided in Section 2.08, but the Company may require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection with any
registration of transfer or exchange of Notes, other than exchanges pursuant to Section 2.06, 9.05,
10.02, 11.01 or 11.02 (other than where the shares of Common Stock are to be issued or delivered in
a name other than that of the Holder of the Note) not involving any transfer and other than any
stamp and other duties, if any, which may be imposed in connection with any such transfer or
exchange by the United States or any political subdivision thereof or therein, which shall be paid
by the Company.

     In the event of a redemption of the Notes, neither the Company nor the Registrar will be
required (a) to register the transfer of or exchange any Non-global Note for a period of 15 days
immediately preceding the date notice is given identifying the certificate numbers of the Notes
called for such redemption or (b) to register the transfer of or exchange any Non-global Note, or
portion thereof, called for redemption.

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     (b) Certain Transfers and Exchanges. Notwithstanding any other provision of this Indenture or
the Notes, transfers and exchanges of Notes and beneficial interests in a Global Note of the kinds
specified in this Section 2.07(b) shall be made only in accordance with this Section 2.07(b).

     (i) Restricted Global Note to Restricted Non-global Note. In the event that Non-global
Notes are to be issued pursuant to Section 2.06(a)(ii) in connection with any transfer of
Notes, such transfer may be effected only in accordance with the provisions of this Clause
(b)(i) and subject to the Applicable Procedures. Upon receipt by the Trustee, as Registrar,
of (A) an Authentication Order from the Company directing the Trustee, as Registrar, to (x)
authenticate and deliver one or more Notes of the same aggregate Principal Amount as the
beneficial interest in the Restricted Global Note to be transferred, such instructions to
contain the name or names of the designated transferee or transferees, the authorized
denomination or denominations of the Notes to be so issued and appropriate delivery
instructions and (y) decrease the beneficial interest of a specified Agent Member’s account
in a Restricted Global Note by a specified Principal Amount not greater than the Principal
Amount of such Restricted Global Note, and (B) such other certifications, legal opinions or
other information as the Company or the Trustee may reasonably require to confirm that such
transfer is being made pursuant to an exemption from, or in a transaction not subject to,
the registration requirements of the Securities Act, then the Trustee, as Registrar, shall
decrease the Principal Amount of the Restricted Global Note by the specified amount and
authenticate and deliver Notes in accordance with such instructions from the Company as
provided in Section 2.06(a)(iii).

     (ii) Restricted Non-global Note to Restricted Global Note. If the Holder of a
Restricted Non-global Note wishes at any time to transfer all or any portion of such
Restricted Non-global Note to a Person who wishes to take delivery thereof in the form of a
beneficial interest in the Restricted Global Note, such transfer may be effected only in
accordance with the provisions of this Clause (b)(ii) and subject to the Applicable
Procedures. Upon receipt by the Trustee, as Registrar, of (A) such Restricted Non-global
Note as provided in Section 2.07(a) and written instructions from the Company directing that
a beneficial interest in the Restricted Global Note in a specified Principal Amount not
greater than the Principal Amount of such Restricted Non-global Note be credited to a
specified Agent Member’s account and (B) a Restricted Notes Certificate, satisfactory to the
Trustee and duly executed by such Holder or its attorney duly authorized in writing, then
the Trustee, as Registrar, shall cancel such Restricted Non-global Note (and issue a new
Restricted Non-global Note in respect of any untransferred portion thereof) as provided in
Section 2.07(a) and increase the Principal Amount of the Restricted Global Note by the
specified Principal Amount as provided in Section 2.06(a)(iii).

     (iii) Exchanges Between Global Note and Non-global Note. A beneficial interest in a
Global Note may be exchanged for a Non-global Note only as provided in Section 2.06(a)(iii),
provided that, if such interest is a beneficial interest in the Restricted Global Note, then
such interest shall be exchanged for a Restricted Non-global Note (subject in each case to
Section 2.07(c)). A Restricted Non-global Note may be exchanged for a beneficial interest in
a Global Note only if such exchange occurs in connection with a transfer effected in
accordance with Clause (b)(ii) above.

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     (c) Securities Act Legends. All Additional Notes issued pursuant to this Indenture, and all
Successor Notes therefor, shall bear the Restricted Notes Legend, subject to the following:

     (i) subject to the following Clauses of this Section 2.07(c), a Note or any portion
thereof which is exchanged, upon transfer or otherwise, for a Global Note or any portion
thereof shall bear the Restricted Notes Legend borne by such Global Note for which the Note
was exchanged;

     (ii) subject to the following Clauses of this Section 2.07(c), a new Note which is not
a Global Note and is issued in exchange for another Note (including a Global Note) or any
portion thereof, upon transfer or otherwise, shall bear the Restricted Notes Legend borne by
the Note for which the new Note was exchanged;

     (iii) the Initial Notes and any Additional Notes which are sold or otherwise disposed
of pursuant to an effective registration statement under the Securities Act, together with
their Successor Notes shall not bear a Restricted Notes Legend; the Company shall inform the
Trustee in writing of the effective date of any such registration statement registering
Additional Notes under the Securities Act and shall notify the Trustee at any time when
prospectuses must be delivered with respect to Additional Notes to be sold pursuant to such
registration statement. The Trustee shall not be liable for any action taken or omitted to
be taken by it in good faith in accordance with the aforementioned registration statement;

     (iv) at any time after the Notes may be freely transferred without registration under
the Securities Act or without being subject to transfer restrictions pursuant to the
Securities Act, a new Note which does not bear a Restricted Notes Legend may be issued in
exchange for or in lieu of a Note (other than a Global Note) or any portion thereof which
bears such a legend if the Trustee has received an Unrestricted Notes Certificate,
satisfactory to the Trustee and duly executed by the Holder of such Note bearing a
Restricted Notes Legend or its attorney duly authorized in writing, and after such date and
receipt of such certificate, the Trustee shall authenticate and deliver such new Note in
exchange for or in lieu of such other Note as provided in this Article 2;

     (v) a new Note which does not bear a Restricted Notes Legend may be issued in exchange
for or in lieu of a Note or any portion thereof which bears such a legend if, in the
Company’s judgment, placing such a legend upon such new Note is not necessary to ensure
compliance with the registration requirements of the Securities Act, and the Trustee, at the
direction of the Company, shall authenticate and deliver such a new Note as provided in this
Article 2; and

     (vi) notwithstanding the foregoing provisions of this Section 2.07(c), a Successor Note
of a Note that does not bear a Restricted Notes Legend shall not bear such legend unless the
Company has reasonable cause to believe that such Successor Note is a “restricted security”
within the meaning of Rule 144, in which case the Trustee, at the direction of the Company,
shall authenticate and deliver a new Note bearing a Restricted Notes Legend in exchange for
such Successor Note as provided in this Article 2.

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     (d) Any stock certificate representing shares of Common Stock issued upon conversion of the
Notes shall bear a legend substantially in the form of the Restricted Notes Legend borne by such
Notes, to the extent required by this Indenture, unless such shares of Common Stock have been sold
pursuant to a registration statement that has been declared effective under the Securities Act (and
which continues to be effective at the time of such transfer) or sold pursuant to Rule 144(k) of
the Securities Act, or unless otherwise agreed by the Company in writing with written notice
thereof to the transfer agent for the Common Stock. With respect to the transfer of shares of
Common Stock issued upon conversion of the Notes that are restricted hereunder, any deliveries of
certificates, legal opinions or other instruments that would be required to be made to the
Registrar in the case of a transfer of Notes, as described above, shall instead be made to the
transfer agent for the Common Stock.

     (e) Neither the Trustee, the Paying Agent nor any of their agents shall (i) have any duty to
monitor compliance with or with respect to any federal or state or other securities or tax laws or
(ii) have any duty to obtain documentation on any transfers or exchanges other than as specifically
required hereunder.

     Section 2.08. Replacement Notes.

     If any mutilated Note is surrendered to the Trustee or the Company and the Trustee receives
evidence to its satisfaction of the destruction, loss or theft of any Note, the Company shall issue
and the Trustee, upon receipt of an Authentication Order, shall authenticate a replacement Note if
the Trustee’s requirements are met. If required by the Trustee or the Company, an indemnity bond
must be supplied by the Holder that is sufficient in the judgment of the Trustee and the Company to
protect the Company, the Trustee, any Agent and any authenticating agent from any loss that any of
them may suffer if a Note is replaced. The Company and the Trustee may charge for their expenses in
replacing a Note. Every replacement Note is an additional legally binding obligation of the Company
and shall be entitled to all of the benefits of this Indenture equally and proportionately with all
other Notes duly issued hereunder.

     Section 2.09. Outstanding Notes.

     The Notes outstanding at any time are all the Notes authenticated by the Trustee except for
those canceled by it, those delivered to it for cancellation, those reductions in the interest in a
Global Note effected by the Trustee in accordance with the provisions of this Indenture, and those
described in this Section as not outstanding. Except as set forth in Section 2.10, a Note does not
cease to be outstanding because either of the Company or an Affiliate of the Company holds the
Note.

     If a Note is replaced pursuant to Section 2.08, it ceases to be outstanding unless the Trustee
receives proof satisfactory to it that the replaced Note is held by a bona fide purchaser.

     If the Principal Amount of any Note is considered paid under Section 4.01, it ceases to be
outstanding and interest on it ceases to accrue.

     If the Paying Agent (other than the Company, a Subsidiary or an Affiliate of any thereof)
holds, on a Redemption Date, Fundamental Change Repurchase Date, Five Year Repurchase Date or
maturity date, money sufficient to pay Notes payable on that date, then on and after that date such
Notes shall be deemed to be no longer outstanding and shall cease to accrue interest.

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     If a Note is converted into Common Stock pursuant to Article 10, it ceases to be outstanding
and interest on it ceases to accrue on the day of surrender of such Note or conversion.

     Section 2.10. Treasury Notes.

     In determining whether the Holders of the required Principal Amount of Notes have concurred in
any direction, waiver or consent, or whether the Holders of the requisite Principal Amount of
outstanding Notes are present at a meeting of Holders of Notes for quorum purposes, Notes owned by
the Company, or by any Person directly or indirectly controlling or controlled by or under direct
or indirect common control with the Company, shall be considered as though not outstanding, except
that for the purposes of determining whether the Trustee shall be protected in relying on any such
direction, waiver or consent, or any such determination as to the presence of a quorum, only Notes
that a Responsible Officer of the Trustee knows are so owned shall be so disregarded.

     Section 2.11. Temporary Notes.

     Until certificates representing Notes are ready for delivery, the Company may prepare and the
Trustee, upon receipt of an Authentication Order, shall authenticate temporary Notes. Temporary
Notes shall be substantially in the form of certificated Notes but may have variations that the
Company considers appropriate for temporary Notes and as shall be reasonably acceptable to the
Trustee. Without unreasonable delay, the Company shall prepare and the Trustee shall authenticate
definitive Notes in exchange for temporary Notes.

     Holders of temporary Notes shall be entitled to all of the benefits of this Indenture.

     Section 2.12. Cancellation.

     The Company at any time may deliver Notes to the Trustee for cancellation. The Registrar,
Conversion Agent and Paying Agent shall forward to the Trustee any Notes surrendered to them for
registration of transfer, exchange, conversion or payment. The Trustee and no one else shall cancel
all Notes surrendered for registration of transfer, exchange, conversion, payment, replacement or
cancellation and shall dispose of such canceled Notes in its customary manner. The Company may not
issue new Notes to replace Notes that they have paid or that have been delivered to the Trustee for
cancellation.

     Section 2.13. Defaulted Interest.

     If the Company defaults in a payment of interest on the Notes, it shall pay the defaulted
interest in any lawful manner plus, to the extent lawful, interest payable on the defaulted
interest, to the Persons who are Holders on a subsequent special record date, in each case at the
rate provided in the Notes and in Section 4.01. The Company shall notify the Trustee in writing of
the amount of defaulted interest proposed to be paid on each Note and the date of the proposed
payment. The Company shall fix or cause to be fixed each such special record date and payment date;
provided that no such special record date shall be less than 10 days prior to the related payment
date for such defaulted interest. At least 15 days before the special record date, the Company (or,
upon the written request of the Company, the Trustee in the name and at the

19

 

expense of the Company) shall mail or cause to be mailed to Holders a notice that states the
special record date, the related payment date and the amount of such interest to be paid.

     Section 2.14. Computation of Interest.

     Interest on the Notes shall be computed on the basis of a 360-day year of twelve 30-day
months.

     Section 2.15. CUSIP Numbers.

     The Company in issuing the Notes may use “CUSIP” numbers (if then generally in use), and, if
so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders;
provided that any such notice may state that no representation is made as to the correctness of
such numbers either as printed in the Notes or as contained in any notice of a redemption and that
reliance may be placed only on the other identification numbers printed on the Notes, and any such
redemption shall not be affected by any defect in or omission of such numbers. The Company will
promptly notify the Trustee of any change in the “CUSIP” numbers.

ARTICLE 3

Redemption And Prepayment

     Section 3.01. Notices to Trustee.

     If the Company elects to redeem Notes pursuant to the optional redemption provisions of
Section 3.07, it shall furnish to the Trustee, at least 30 days but not more than 60 days before a
Redemption Date, an Officers’ Certificate setting forth (i) the Redemption Date, (ii) the Principal
Amount of Notes to be redeemed, (iii) whether the Company will deliver shares of Common Stock, or
cash in lieu thereof, upon conversion of Notes called for redemption, (v) if the Company elects to
deliver cash upon any such conversion, the percentage of the Conversion Rate with respect to which
the Company will pay cash and (vi) whether the Company will deliver cash or shares of Common Stock
with respect to any Redemption Make Whole Amount owed upon conversion.

     Section 3.02. Selection of Notes to Be Redeemed.

     If less than all of the Notes are to be redeemed at any time, the Trustee shall select the
Notes to be redeemed among the Holders of the Notes on a pro rata basis, by lot or in accordance
with any other method the Trustee considers fair and appropriate. In the event of partial
redemption by lot, the particular Notes to be redeemed shall be selected, unless otherwise provided
herein, not less than 30 nor more than 60 days prior to the Redemption Date by the Trustee from the
outstanding Notes not previously called for redemption. If any Note selected for partial redemption
is converted in part before termination of the conversion right with respect to the portion of the
Note so selected, the converted portion of such Note shall be deemed (so far as may be) to be the
portion selected for redemption. Notes which have been converted during a selection of Notes to be
redeemed may be treated by the Trustee as outstanding for the purpose of such selection.

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     The Trustee shall promptly notify the Company in writing of the Notes selected for redemption
and, in the case of any Note selected for partial redemption, the Principal Amount thereof to be
redeemed. The Principal Amount of Notes and portions of Notes selected shall be in amounts of
$1,000 or whole multiples of $1,000; except that if all of the Notes of a Holder are to be
redeemed, the entire outstanding Principal Amount of Notes held by such Holder, even if not a
multiple of $1,000, shall be redeemed. Except as provided in the preceding sentence, provisions of
this Indenture that apply to Notes called for redemption also apply to portions of Notes called for
redemption.

     Section 3.03. Notice of Redemption.

     At least 30 days but not more than 60 days before a Redemption Date, the Company shall mail or
cause to be mailed, by first class mail, a notice of redemption to each Holder whose Notes are to
be redeemed at its registered address.

     The notice shall identify the Notes (including applicable CUSIP numbers) to be redeemed and
shall state:

     (a) the Redemption Date;

     (b) the Redemption Price;

     (c) whether the Company will deliver shares of Common Stock or cash in lieu thereof upon
conversion of any Notes called for redemption;

     (d) if the Company elects to deliver cash upon any such conversion, the percentage of the
Conversion Rate with respect to which the Company will pay cash;

     (e) whether the Company will deliver cash or shares of Common Stock with respect to any
Redemption Make Whole Amount owed upon conversion;

     (f) if any Note is being redeemed in part, the portion of the Principal Amount of such Note to
be redeemed and that, after the Redemption Date upon surrender of such Note, a new Note or Notes in
Principal Amount equal to the unredeemed portion shall be issued upon cancellation of the original
Note;

     (g) the name and address of the Paying Agent;

     (h) that Notes called for redemption must be surrendered to the Paying Agent to collect the
Redemption Price;

     (i) that, unless the Company defaults in making such redemption payment, interest on Notes
called for redemption ceases to accrue on and after the Redemption Date;

     (j) that no representation is made as to the correctness or accuracy of the CUSIP number, if
any, listed in such notice or printed on the Notes; and

     (k) the Conversion Rate, that there is a right to convert the Notes to be redeemed, the date
on which the right to convert the Notes to be redeemed will terminate (which shall be the

21

 

Business Day immediately preceding the Redemption Date) and the places where Notes may be
surrendered for conversion or the procedures for surrendering Notes.

     At the Company’s request, the Trustee shall give the notice of redemption in the Company’s
name and at its expense; provided, however, that the Company shall have delivered to the Trustee,
at least 45 days prior to the Redemption Date, an Officers’ Certificate requesting that the Trustee
give such notice and setting forth the information to be stated in such notice as provided in the
preceding paragraph.

     Section 3.04. Effect of Notice of Redemption.

     Once notice of redemption is mailed in accordance with Section 3.03, Notes called for
redemption become irrevocably due and payable on the Redemption Date at the Redemption Price. A
notice of redemption may not be conditional.

     Section 3.05. Deposit of Redemption Price.

     At or prior to 10:00 a.m., New York City time, on the Redemption Date, the Company shall
deposit with the Trustee or with the Paying Agent money sufficient to pay the Redemption Price of
all Notes to be redeemed on that date. The Trustee or the Paying Agent shall promptly return to the
Company any money deposited with the Trustee or the Paying Agent by the Company in excess of the
amounts, including but not limited to any amounts in respect of Notes that are converted (subject
to Section 10.02), necessary to pay the Redemption Price of all Notes to be redeemed. If the
Company complies with the provisions of the first sentence of this Section 3.05, on and after the
Redemption Date interest shall cease to accrue on the Notes or the portions of Notes called for
redemption. If any Note called for redemption shall not be so paid upon surrender for redemption
because of the failure of the Company to comply with this paragraph, interest shall be paid on the
unpaid Principal Amount from the Redemption Date and such Note shall remain convertible until such
Principal Amount is paid, and to the extent lawful on any interest not paid on such unpaid
Principal Amount, in each case at the rate provided in the Notes and in Section 4.01.

     Section 3.06. Notes Redeemed in Part.

     Upon surrender of a Note that is redeemed in part, the Company shall issue and, upon the
Company’s written request, the Trustee shall authenticate for the Holder at the expense of the
Company a new Note equal in Principal Amount to the unredeemed portion of the Note surrendered.

     Section 3.07. Optional Redemption.

     (a) Prior to October 1, 2010, the Company may redeem the Notes, in whole or in part, upon not
less than 30 nor more than 60 days’ notice, for cash at a price (the “Redemption Price”) equal to
100% of the Principal Amount of such Notes plus accrued and unpaid interest, if any, on such Notes
to, but excluding, the Redemption Date, if the Sale Price of the Common Stock has exceeded, for at
least 20 Trading Days in any consecutive 30 Trading Day period ending on the date the Company gives
such notice, 180% of the Conversion Price on each such Trading Day. Commencing on, and including,
October 1, 2010 until, but excluding, October 1, 2012, the Company may redeem the Notes, in whole
or in part, upon not less than 30 nor more

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than 60 days’ notice, for cash at the Redemption Price plus accrued and unpaid interest, if
any, on such Notes to, but excluding, the Redemption Date, if the Sale Price of the Common Stock
has exceeded, for at least 20 Trading Days in any consecutive 30 Trading Day period ending on the
date the Company gives such notice, 150% of the Conversion Price on each such Trading Day. On and
after October 1, 2012, the Company may redeem the Notes, in whole or in part upon not less than 30
nor more than 60 days’ notice, for cash at the Redemption Price plus accrued and unpaid interest,
if any, on such Notes to, but excluding, the Redemption Date. Notwithstanding the foregoing, if a
Note is redeemed on an Interest Payment Date or during the Record Date Period, then any accrued and
unpaid interest shall be paid to the Person in whose name such Note was registered at the close of
business on the applicable Regular Record Date and the amount of any such interest to be paid shall
be excluded from the Redemption Price.

     (b) Any redemption pursuant to this Section 3.07 shall be made pursuant to the provisions of
Section 3.01 through 3.06.

     (c) No Notes may be redeemed by the Company pursuant to this Section 3.07 if the Principal
Amount of the Notes has been accelerated (other than as a result of a failure to pay the relevant
redemption price), and such acceleration has not been rescinded on or prior to the Redemption Date.

     Section 3.08. Mandatory Redemption.

     Except as otherwise provided in Article 11, the Company shall not be required to make
mandatory redemption payments with respect to the Notes.

ARTICLE 4

Covenants

     Section 4.01. Payment of Notes.

     The Company shall pay or cause to be paid the Principal Amount, premium, if any, and interest
on the Notes on the dates and in the manner provided in the Notes. The Principal Amount, premium,
if any, and interest shall be considered paid on the date due if the Paying Agent, if other than
the Company or a Subsidiary thereof, holds as of 10:00 a.m. New York City time on the due date
money deposited by the Company in immediately available funds and designated for and sufficient to
pay the Principal Amount, premium, if any, and interest then due.

     The Company shall pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on the overdue Principal Amount at the rate equal to 1% per annum in excess of the
then applicable interest rate on the Notes to the extent lawful; the Company shall pay interest
(including post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest (without regard to any applicable grace period) at the same rate to the
extent lawful.

     Section 4.02. Maintenance of Office or Agency.

     The Company shall maintain in the Borough of Manhattan, The City of New York, an office or
agency (which may be an office of the Trustee or an affiliate or agent of the Trustee,

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Registrar or co-registrar) where Notes may be surrendered for conversion, redemption,
repurchase, registration of transfer or exchange and where notices and demands to or upon the
Company in respect of the Notes and this Indenture may be served. The Company shall give prompt
written notice to the Trustee of the location, and any change in the location, of such office or
agency. If at any time the Company shall fail to maintain any such required office or agency or
shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices
and demands may be made or served at the Corporate Trust Office of the Trustee.

     The Company may also from time to time designate one or more other offices or agencies where
the Notes may be presented or surrendered for any or all such purposes and may from time to time
rescind such designations; provided, however, that no such designation or rescission shall in any
manner relieve the Company of their obligation to maintain an office or agency in the Borough of
Manhattan, the City of New York for such purposes. The Company shall give prompt written notice to
the Trustee of any such designation or rescission and of any change in the location of any such
other office or agency.

     The Company hereby designates the office of the Trustee located at The Bank of New York Trust
Company, c/o The Depository Trust Company, 1st Floor — TADS Dept., 55 Water Street, NY, NY 10041,
as one such office or agency of the Company in accordance with Section 2.03.

     Section 4.03. Reports.

     The Company shall file with the Trustee and the Commission, and transmit to Holders, such
information, documents and other reports, and such summaries thereof, as may be required pursuant
to the TIA at the times and in the manner provided pursuant to the TIA; provided that any such
information, documents or reports required to be filed with the Commission pursuant to Section 13
or 15(d) of the Exchange Act shall be filed with the trustee within 15 days after the same is so
required to be filed with the Commission.

     Delivery of such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained therein, including the
Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to
rely exclusively on Officers’ Certificates).

     Section 4.04. Compliance Certificate.

     (a) The Company shall deliver to the Trustee, within 90 days after the end of each fiscal
year, an Officers’ Certificate stating that a review of the activities of the Company and its
Subsidiaries during the preceding fiscal year have been made under the supervision of the signing
Officers with a view to determining whether the Company has kept, observed, performed and fulfilled
its obligations under this Indenture, and further stating, as to each such Officer signing such
certificate, that to the best of his or her knowledge the Company has kept, observed, performed and
fulfilled each and every covenant contained in this Indenture and is not in default in the
performance or observance of any of the terms, provisions and conditions of this Indenture (or, if
a Default or Event of Default shall have occurred, describing all such Defaults or Events of
Default of which he or she may have knowledge and what action the Company is taking or

24

 

proposes to take with respect thereto) and that to the best of his or her knowledge no event
has occurred and remains in existence by reason of which payments on account of the Principal
Amount of or interest, if any, on the Notes is prohibited or if such event has occurred, a
description of the event and what action the Company is taking or proposes to take with respect
thereto.

     (b) The Company shall, so long as any of the Notes are outstanding, deliver to the Trustee,
within five Business Days of any Officer becoming aware of any Default or Event of Default, an
Officers’ Certificate specifying such Default or Event of Default and what action the Company is
taking or proposes to take with respect thereto.

     Section 4.05. Taxes.

     The Company shall pay, and shall cause each of its Subsidiaries to pay, prior to delinquency,
all material taxes, assessments, and governmental levies except such as are contested in good faith
and by appropriate proceedings or where the failure to effect such payment is not adverse in any
material respect to the Holders of the Notes.

     Section 4.06. Stay, Extension and Usury Laws.

     The Company covenants (to the extent that it may lawfully do so) that it shall not at any time
insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any
stay, extension or usury law wherever enacted, now or at any time hereafter in force, that may
affect the covenants or the performance of this Indenture; and the Company (to the extent that it
may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants
that it shall not, by resort to any such law, hinder, delay or impede the execution of any power
herein granted to the Trustee, but shall suffer and permit the execution of every such power as
though no such law has been enacted.

     Section 4.07. Corporate Existence.

     Subject to Article 5, the Company shall do or cause to be done all things necessary to
preserve and keep in full force and effect (i) its corporate existence, and the corporate,
partnership or other existence of each of its Significant Subsidiaries, in accordance with the
respective organizational documents (as the same may be amended from time to time) of the Company
or any such Significant Subsidiary and (ii) the rights (charter and statutory), licenses and
franchises of the Company and its Significant Subsidiaries; provided, however, that the Company
shall not be required to preserve any such right, license or franchise, or the corporate,
partnership or other existence of any of its Significant Subsidiaries, if the Board of Directors of
the Company shall determine that the preservation thereof is no longer desirable in the conduct of
the business of the Company and its Significant Subsidiaries, taken as a whole, and that the loss
thereof is not adverse in any material respect to the Holders of the Notes.

     Section 4.08. Payments for Consent.

     The Company shall not, and shall not permit any of its Subsidiaries to, directly or
indirectly, pay or cause to be paid any consideration to or for the benefit of any Holder of Notes
for or as an inducement to any consent, waiver or amendment of any of the terms or provisions of
this Indenture or the Notes unless such consideration is offered to be paid and is paid to all

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Holders of the Notes that consent, waive or agree to amend in the time frame set forth in the
solicitation documents relating to such consent, waiver or agreement.

     Section 4.09. Registration and Listing.

     The Company (i) will effect all registrations with, and obtain all approvals by, all
governmental authorities that may be necessary under any United States Federal or state law
(including the Securities Act, the Exchange Act and state securities and Blue Sky laws) before the
shares of Common Stock issuable upon conversion of Notes are issued and delivered, and qualified or
listed as contemplated by clause (ii); and (ii) will qualify the shares of Common Stock required to
be issued and delivered upon conversion of Notes, prior to such issuance or delivery, for quotation
on the Nasdaq National Market or, if the Common Stock is not then quoted on the Nasdaq National
Market, on each national securities exchange or quotation system on which outstanding Common Stock
is listed or quoted at the time of such delivery (it being understood that the Company shall not be
required to register the Notes and the shares of Common Stock under the Securities Act).

     Section 4.10. Delivery of Certain Information.

     At any time when the Company is not subject to Section 13 or 15(d) of the Exchange Act, upon
the request of a Holder of a Restricted Note or the holder of shares of Common Stock issued upon
conversion thereof, the Company shall promptly furnish or cause to be furnished Rule 144A
Information (as defined below) to such Holder of Restricted Notes or such holder of shares of
Common Stock issued upon conversion of Restricted Notes, or to a prospective purchaser of any such
security designated by any such Holder or holder, as the case may be, to the extent required to
permit compliance by such Holder or holder with Rule 144A under the Securities Act (or any
successor provision thereto) in connection with the resale of any such security; provided, however,
that the Company shall not be required to furnish such information in connection with any request
made on or after the date which is two years from the later of (i) the date such a security (or any
such predecessor security) was last acquired from the Company or (ii) the date such a security (or
any such predecessor security) was last acquired from an “affiliate” of the Company within the
meaning of Rule 144 under the Securities Act (or any successor provision thereto). “Rule 144A
Information” shall be such information as is specified pursuant to Rule 144A(d)(4) under the
Securities Act (or any successor provision thereto).

     Section 4.11. Waiver of Certain Covenants.

     The Company may omit in any particular instance to comply with any covenant or condition set
forth in Sections 4.05 and 4.07 (other than with respect to the existence of the Company (subject
to Article 5)) (other than a covenant or condition which under Article 9 cannot be modified or
amended without the consent of the Holder of each outstanding Note affected), if before the time
for such compliance the Holders shall either (i) through the written consent (or as otherwise in
accordance with the Applicable Procedures) of the Holders of at least a majority in aggregate
Principal Amount of the Notes then outstanding or (ii) by the adoption of a resolution, at a
meeting of Holders of the outstanding Notes at which a quorum is present, by the Holders of at
least a majority in Principal Amount of the outstanding Notes represented at such meeting, either
waive such compliance in such instance or generally waive compliance with such covenant or
condition, but no such waiver shall extend to or affect such covenant or condition except to the
extent so expressly waived and, until such waiver shall become effective, the

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obligations of the Company and the duties of the Trustee or any Paying or Conversion Agent in
respect of any such covenant or condition shall remain in full force and effect.

     Section 4.12. Calculation of Tax Original Issue Discount.

     At the request of the Trustee, the Company shall file with the Trustee promptly at the end of
each calendar year (i) a written notice specifying the amount of Tax Original Issue Discount
(including daily rates and accrual periods) accrued on the Notes as of the end of such year and
(ii) such other specific information relating to such Tax Original Issue Discount as may then be
reasonably requested by the Trustee and relevant under the Internal Revenue Code of 1986, as
amended from time to time, or the Treasury regulations promulgated thereunder.

ARTICLE 5

Successors

     Section 5.01. Merger, Consolidation, or Sale of Assets.

     The Company may not, directly or indirectly: (1) consolidate or merge with or into another
Person (whether or not the Company is the surviving corporation); or (2) sell, lease or otherwise
transfer in one transaction or a series of related transactions the consolidated assets of the
Company and its Subsidiaries substantially as an entirety to any corporation, limited liability
company, partnership or trust organized under the laws of the United States or any of its political
subdivisions; unless:

     (a) either: (i) the Company is the surviving corporation; or (ii) the Person formed by or
surviving any such consolidation or merger (if other than the Company) or to which such sale,
assignment, transfer, conveyance or other disposition shall have been made is a Person organized or
existing under the laws of the United States, any state thereof or the District of Columbia
(provided that if the Person formed by or surviving any such consolidation or merger with the
Company is not a corporation, a corporate co-issuer shall also be an obligor with respect to the
Notes);

     (b) the surviving entity assumes all the obligations of the Company under the Notes and this
Indenture pursuant to agreements reasonably satisfactory to the Trustee;

     (c) if as a result of such transaction the Notes become convertible into common stock or other
securities issued by a third party that is not the successor under the Notes and this Indenture,
such third party fully and unconditionally guarantees all obligations of the Company or such
successor under the Notes and this Indenture;

     (d) at the time of such transaction, no Default or Event of Default shall have happened and be
continuing; and

     (e) an Officer’s Certificate and an Opinion of Counsel, each stating that the consolidation,
merger or transfer complies with the provisions herein, have been delivered to the Trustee.

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     This Section 5.01 shall not apply to a sale, lease, assignment, conveyance or other transfer
of assets between or among (i) the Company and Charter Holdco or (ii) the Company and any
wholly-owned Subsidiary of Charter Holdco.

     Section 5.02. Successor Corporation Substituted.

     Upon any consolidation, merger, sale, lease or other transfer of the consolidated assets of
the Company and its Subsidiaries substantially as an entirety in accordance with Section 5.01, the
successor Person formed by such consolidation or into which the Company is merged or to which such
transfer is made shall succeed to and (except in the case of a lease) be substituted for, and may
exercise every right and power of, the Company under this Indenture with the same effect as if such
successor Person had been named therein as the Company, and (except in the case of a lease) the
Company shall be released from the obligations under the Notes and this Indenture, except with
respect to any obligations that arise from, or are related to, such transaction.

ARTICLE 6

Defaults and Remedies

     Section 6.01. Events of Default.

     An “Event of Default” occurs if:

     (a) the Company defaults in the payment when due of interest on the Notes and such default
continues for a period of 30 days;

     (b) the Company defaults in payment when due, whether at Maturity, on a Redemption Date, a
Fundamental Change Repurchase Date, a Five Year Repurchase Date or otherwise, of the Principal
Amount of or premium, if any, on the Notes;

     (c) the Company fails to give timely notice of (i) the anticipated effective date of a
transaction described in clause (2) of the definition of Change of Control pursuant to Section
10.01 or (ii) a Fundamental Change pursuant to Section 11.01;

     (d) the Company fails to comply with any of its other covenants or agreements in this
Indenture for 30 days after written notice thereof has been given to the Company by the Trustee or
to the Company and the Trustee by Holders of at least 25% of the aggregate Principal Amount of the
Notes then outstanding;

     (e) the Company or any of its Significant Subsidiaries fails to make payment under any
mortgage, indenture or instrument under which there may be issued or by which there may be secured
or evidenced any Indebtedness for money borrowed (or the payment of which is guaranteed by the
Company or any of its Significant Subsidiaries) whether such Indebtedness or guarantee now exists
or is created after the Issue Date, if that default:

     (1) is caused by a failure to pay at final stated maturity the principal amount on such
Indebtedness prior to the expiration of the grace period provided in such Indebtedness on
the date of such default (a “Payment Default”); or

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     (2) results in the acceleration of such Indebtedness prior to its express maturity,

and, in the case of each of (1) and (2) above, the principal amount of any such
Indebtedness, together with the principal amount of any other such Indebtedness under which
there has been a Payment Default or the maturity of which has been so accelerated,
aggregates $100 million or more;

     (f) the Company or any of its Significant Subsidiaries pursuant to or within the meaning of
Bankruptcy Law:

          (i) commences a voluntary case,

          (ii) consents to the entry of an order for relief against it in an involuntary case,

          (iii) consents to the appointment of a custodian of it or for all or substantially all
of its property, or

          (iv) makes a general assignment for the benefit of its creditors; or

     (g) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:

          (i) is for relief against the Company or any of its Significant Subsidiaries in an
involuntary case;

          (ii) appoints a custodian of the Company or any of its Significant Subsidiaries or for
all or substantially all of the property of the Company or any of its Significant
Subsidiaries; or

          (iii) orders the liquidation of the Company or any of its Significant Subsidiaries; and
the order or decree remains unstayed and in effect for 60 consecutive days; and

     (h) the Company fails to deliver shares of Common Stock, or cash in lieu thereof, when due
upon conversion of any Notes, together with cash in respect of any fractional shares and any
Redemption Make Whole Amount due pursuant to Section 10.08, and such failure continues for ten
days.

     Section 6.02. Acceleration.

     In the case of an Event of Default arising from clause (f) or (g) of Section 6.01 with respect
to the Company, all outstanding Notes shall become due and payable immediately without further
action or notice. If any other Event of Default occurs and is continuing, the Trustee by notice to
the Company or the Holders of at least 25% in aggregate Principal Amount of the then outstanding
Notes may declare all the Notes to be due and payable at their Principal Amount together with
accrued and unpaid interest, and thereupon the Trustee may, at its discretion, proceed to protect
and enforce the rights of the Holders of Notes by appropriate judicial proceedings.

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     Section 6.03. Defaults and Remedies.

     If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy
to collect the payment of Principal Amount, premium, if any, and interest on the Notes or to
enforce the performance of any provision of the Notes or this Indenture. The Trustee may maintain a
proceeding even if it does not possess any of the Notes or does not produce any of them in the
proceeding. A delay or omission by the Trustee or any Holder of a Note in exercising any right or
remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a
waiver of or acquiescence in the Event of Default. All remedies are cumulative to the extent
permitted by law.

     Section 6.04. Waiver of Existing Defaults.

     Holders, either (i) through the written consent (or as otherwise in accordance with the
Applicable Procedures) of the Holders of at least a majority in aggregate Principal Amount of the
then outstanding Notes by notice to the Trustee or (ii) by the adoption of a written resolution, at
a meeting of Holders of the outstanding Notes at which a quorum is present, by the Holders of at
least a majority in Principal Amount of the outstanding Notes represented at such meeting, may on
behalf of the Holders of all of the Notes waive an existing Default or Event of Default and its
consequences hereunder, except (x) a continuing Default or Event of Default in the payment of the
Principal Amount of, premium, if any, or interest on, the Notes (whether at Stated Maturity, a
Redemption Date, a Fundamental Change Repurchase Date, a Five Year Repurchase Date or otherwise);
(y) in respect of the failure to convert the Notes; or (z) in respect of a covenant or provision
hereof which under Article 9 cannot be modified or amended without the consent of each Holder of
each outstanding Note affected (provided, however, that the Holders of a majority in aggregate
Principal Amount of the then outstanding Notes may rescind an acceleration and its consequences,
including any related payment default that resulted from such acceleration). Upon any such waiver,
such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to
have been cured for every purpose of this Indenture; but no such waiver shall extend to any
subsequent or other Default or impair any right consequent thereon.

     Section 6.05. Control by Majority.

     Holders of a majority in aggregate Principal Amount of the then outstanding Notes may direct
the time, method and place of conducting any proceeding for exercising any remedy available to the
Trustee or exercising any trust or power conferred on it. However, the Trustee may refuse to follow
any direction that conflicts with law or this Indenture, that the Trustee determines may be
prejudicial to the rights of other Holders of Notes or that may involve the Trustee in personal
liability. The Trustee may take any other action which it deems proper that is not inconsistent
with any such directive.

     Section 6.06. Limitation on Suits.

     A Holder of a Note may pursue a remedy with respect to this Indenture or the Notes only if:

     (a) the Holder of a Note gives to the Trustee written notice of a continuing Event of Default;

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     (b) the Holders of at least 25% in Principal Amount of the then outstanding Notes make a
written request to the Trustee to pursue the remedy;

     (c) such Holder of a Note or Holders of Notes offer and, if requested, provide to the Trustee
indemnity satisfactory to the Trustee against any loss, liability or expense;

     (d) the Trustee does not comply with the request within 60 days after receipt of the request
and the offer and, if requested, the provision of indemnity; and

     (e) during such 60-day period the Holders of a majority in Principal Amount of the then
outstanding Notes do not give the Trustee a direction inconsistent with the request.

     A Holder of a Note may not use this Indenture to prejudice the rights of another Holder of a
Note or to obtain a preference or priority over another Holder of a Note.

     Section 6.07. Rights of Holders of Notes to Receive Payment and to Convert.

     Notwithstanding any other provision of this Indenture, the right of any Holder of a Note to
receive payment of the Principal Amount, premium, if any, and interest on the Note, on or after the
Stated Maturity dates (including in connection with a redemption and/or an offer to purchase), or
to convert such Note in accordance with Article 10, or to bring suit for the enforcement of any
such payment on or after such respective dates or of such right to convert, shall be absolute and
unconditional and shall not be impaired or affected without the consent of such Holder.

     Section 6.08. Collection Suit by Trustee.

     If an Event of Default specified in Section 6.01(a) or 6.01(b) occurs and is continuing, the
Trustee is authorized to recover judgment in its own name and as trustee of an express trust
against the Company for the whole Principal Amount of, premium, if any, and interest remaining
unpaid on the Notes and interest on overdue Principal Amount and, to the extent lawful, interest
and such further amount as shall be sufficient to cover the costs and expenses of collection,
including the reasonable compensation, expenses, disbursements and advances of the Trustee, its
agents and counsel.

     Section 6.09. Trustee May File Proofs of Claim.

     The Trustee is authorized to file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel) and the Holders of the Notes allowed in any judicial proceedings relative to the Company
(or any other obligor upon the Notes), their creditors or their property and shall be entitled and
empowered to collect, receive and distribute any money or other property payable or deliverable on
any such claims and any custodian in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Trustee, and in the event that the Trustee shall consent to the
making of such payments directly to the Holders, to pay to the Trustee any amount due to it for the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel, and any other amounts due the Trustee under Section 7.07. To the extent that the payment
of any such compensation, expenses, disbursements

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and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee
under Section 7.07 out of the estate in any such proceeding, shall be denied for any reason,
payment of the same shall be secured by a lien on, and shall be paid out of, any and all
distributions, dividends, money, securities and other properties that the Holders may be entitled
to receive in such proceeding whether in liquidation or under any plan of reorganization or
arrangement or otherwise. Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization,
arrangement, adjustment or composition affecting the Notes or the rights of any Holder, or to
authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

     Section 6.10. Priorities.

     If the Trustee collects any money pursuant to this Article, it shall pay out the money in the
following order:

First: to the Trustee, its agents and attorneys for amounts due under
Section 7.07, including payment of all compensation, expense and liabilities
incurred, and all advances made, by the Trustee and the costs and expenses
of collection;

Second: to Holders of Notes for amounts due and unpaid on the Notes for
Principal Amount, premium, if any, and interest, ratably, without preference
or priority of any kind, according to the amounts due and payable on the
Notes for Principal Amount, premium, if any and interest, respectively; and

Third: to the Company or to such party as a court of competent jurisdiction
shall direct. The Trustee may fix a record date and payment date for any
payment to Holders of Notes pursuant to this Section 6.10.

     Section 6.11. Undertaking for Costs.

     In any suit for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as a Trustee, a court in its discretion
may require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
fees and expenses, against any party litigant in the suit, having due regard to the merits and good
faith of the claims or defenses made by the party litigant. This Section does not apply to a suit
by the Trustee, a suit by a Holder of a Note pursuant to Section 6.07, or a suit by Holders of more
than 10% in Principal Amount of the then outstanding Notes.

ARTICLE 7

Trustee

     Section 7.01. Duties of Trustee.

     (a) If an Event of Default has occurred and is continuing, the Trustee shall exercise such of
the rights and powers vested in it by this Indenture, and use the same degree of care and

32

 

skill in its exercise, as a prudent person would exercise or use under the circumstances in
the conduct of such person’s own affairs.

     (b) Except during the continuance of an Event of Default:

          (i) the duties of the Trustee shall be determined solely by the express provisions of
this Indenture and the Trustee need perform only those duties that are specifically set
forth in this Indenture and no others, and no implied covenants or obligations shall be read
into this Indenture against the Trustee; and

          (ii) in the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions required to be furnished to the Trustee hereunder and conforming to
the requirements of this Indenture. However, the Trustee shall examine the certificates and
opinions to determine whether or not they conform to the requirements of this Indenture (but
need not confirm or investigate the accuracy of any mathematical calculations or other facts
stated therein).

     (c) The Trustee may not be relieved from liabilities for its own gross negligent action, its
own gross negligent failure to act, or its own willful misconduct, except that:

          (i) this paragraph does not limit the effect of paragraph (b) of this Section;

          (ii) the Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it is proved that the Trustee was grossly negligent in
ascertaining the pertinent facts; and

          (iii) the Trustee shall not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to Section 6.05.

     (d) Whether or not therein expressly so provided, every provision of this Indenture that in
any way relates to the Trustee is subject to paragraphs (a), (b), and (c) of this Section 7.01.

     (e) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or incur any liability. The Trustee shall be under no obligation to exercise any of its rights and
powers under this Indenture at the request of any Holders, unless such Holder shall have offered to
the Trustee security and indemnity satisfactory to it against any loss, liability, claim, damage or
expense.

     (f) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be
segregated from other funds except to the extent required by law.

     (g) The Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture or other paper or documents.

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     Section 7.02. Rights of Trustee.

     (a) The Trustee may conclusively rely upon any document (whether in its original or facsimile
form) believed by it to be genuine and to have been signed or presented by the proper Person. The
Trustee need not investigate any fact or matter stated in the document.

     (b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate
or an Opinion of Counsel or both. The Trustee shall not be liable for any action it takes or omits
to take in good faith in reliance on such Officers’ Certificate or Opinion of Counsel. The Trustee
may consult with counsel of its own selection and the written advice or opinion of such counsel or
any Opinion of Counsel shall be full and complete authorization and protection from liability in
respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance
thereon.

     (c) The Trustee may act through its attorneys and agents and shall not be responsible for the
misconduct or negligence of any agent appointed with due care.

     (d) The Trustee shall not be liable for any action it takes or omits to take in good faith
that it believes to be authorized or within the rights or powers conferred upon it by this
Indenture.

     (e) Unless otherwise specifically provided in this Indenture, any demand, request, direction
or notice from the Company shall be sufficient if signed by an Officer of the Company.

     (f) Subject to the duty of the Trustee during an Event of Default to act with the required
standard of care, the Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any of the Holders unless such
Holders shall have offered to the Trustee reasonable security or indemnity satisfactory to it
against the costs, expenses and liabilities that might be incurred by it in compliance with such
request or direction.

     (g) The Trustee shall not be charged with knowledge of any Default or Event of Default unless
either (i) a Responsible Officer of the Trustee shall have actual knowledge of such Default or
Event of Default or (ii) written notice of such Default or Event of Default shall have been given
to and received by a Responsible Officer of the Trustee by the Company or any Holder and such
notice refers to the Notes and this Indenture.

     Section 7.03. Individual Rights of Trustee.

     The Trustee in its individual or any other capacity may become the owner or pledgee of Notes
and may otherwise deal with the Company or any Affiliate of the Company with the same rights it
would have if it were not Trustee. However, in the event that the Trustee acquires any conflicting
interest it must eliminate such conflict within 90 days, apply to the Commission for permission to
continue as trustee or resign. Any Agent may do the same with like rights and duties. The Trustee
is also subject to Sections Section 7.10 and 7.11.

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     Section 7.04. Trustee’s Disclaimer.

     The Trustee shall not be responsible for and makes no representation as to the validity or
adequacy of this Indenture or the Notes, it shall not be accountable for the Company’s use of the
proceeds from the Notes or any money paid to the Company or upon the Company’s direction under any
provision of this Indenture, it shall not be responsible for the use or application of any money
received by any Paying Agent other than the Trustee, and it shall not be responsible for any
statement or recital herein or any statement in the Notes or any other document in connection with
the sale of the Notes or pursuant to this Indenture other than its certificate of authentication.

     Section 7.05. Notice of Defaults.

     If a Default or Event of Default occurs and is continuing and if it is known to a Responsible
Officer of the Trustee, the Trustee shall mail to Holders of Notes a notice of the Default or Event
of Default within 90 days after the Trustee acquires knowledge thereof. Except in the case of a
Default or Event of Default in payment of Principal Amount of, premium, if any, or interest on any
Note or in the payment of any obligation in connection with conversion, redemption or repurchase,
the Trustee may withhold the notice if and so long as it, in good faith, determines that
withholding the notice is in the interests of the Holders of the Notes.

     Section 7.06. Reports by Trustee to Holders of the Notes.

     Within 60 days after each May 15 beginning with the May 15 following the date of this
Indenture, and for so long as Notes remain outstanding, the Trustee shall mail to the Holders of
the Notes a brief report dated as of such reporting date that complies with TIA ss. 313(a) (but if
no event described in TIA ss. 313(a) has occurred within the twelve months preceding the reporting
date, no report need be transmitted). The Trustee also shall comply with TIA ss. 313(b)(2). The
Trustee shall also transmit by mail all reports as required by TIA ss. 313(c).

     A copy of each report at the time of its mailing to the Holders of Notes shall be mailed to
the Company and filed with the Commission and each stock exchange on which the Notes are listed in
accordance with TIA ss. 313(d). The Company shall promptly notify the Trustee when the Notes are
listed on any stock exchange or delisted therefrom.

     Section 7.07. Compensation and Indemnity.

     The Company shall pay to the Trustee from time to time reasonable compensation for its
acceptance of this Indenture and services hereunder. The Trustee’s compensation shall not be
limited by any law on compensation of a trustee of an express trust. The Company shall reimburse
the Trustee promptly upon request for all reasonable disbursements, advances and expenses incurred
or made by it in addition to the compensation for its services. Such expenses shall include the
reasonable compensation, disbursements and expenses of the Trustee’s agents and counsel.

     The Company shall fully indemnify the Trustee against any and all losses, liabilities, claims,
damages or expenses (including reasonable legal fees and expenses) incurred by it arising out of or
in connection with the acceptance or administration of its duties under this Indenture, including
the costs and expenses of enforcing this Indenture against the Company (including this Section
7.07) and defending itself against any claim (whether asserted by the Company or any

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Holder or any other person) or liability in connection with the exercise or performance of any
of its powers or duties hereunder, except to the extent any such loss, liability or expense may be
attributable to its gross negligence or willful misconduct. The Trustee shall notify the Company
promptly of any claim for which it may seek indemnity. Failure by the Trustee to so notify the
Company shall not relieve the Company of its obligations hereunder. The Company shall defend the
claim and the Trustee shall cooperate in the defense. The Trustee may have separate counsel and the
Company shall pay the reasonable fees and expenses of such counsel. The Company need not pay for
any settlement made without their consent, which consent shall not be unreasonably withheld.

     The obligations of the Company in this Section 7.07 shall survive resignation or removal of
the Trustee and the satisfaction and discharge of this Indenture.

     To secure the Company’s payment obligations in this Section, the Trustee shall have a lien
prior to the Notes on all money or property held or collected by the Trustee, except that held in
trust to pay Principal Amount and interest on particular Notes. Such lien shall survive the
resignation or removal of the Trustee and the satisfaction and discharge of this Indenture.

     When the Trustee incurs expenses or renders services after an Event of Default specified in
Section 6.01(f) or (g) occurs, the expenses and the compensation for the services (including the
fees and expenses of its agents and counsel) are intended to constitute expenses of administration
under any Bankruptcy Law.

     The Trustee shall comply with the provisions of TIA ss. 313(b)(2) to the extent applicable.

     Section 7.08. Replacement of Trustee.

     A resignation or removal of the Trustee and appointment of a successor Trustee shall become
effective only upon the successor Trustee’s acceptance of appointment as provided in this Section.

     The Trustee may resign in writing at any time and be discharged from the trust hereby created
by so notifying the Company. The Holders of a majority in Principal Amount of the then outstanding
Notes may remove the Trustee by so notifying the Trustee and the Company in writing. The Company
may remove the Trustee if:

     (a) the Trustee fails to comply with Section 7.10;

     (b) the Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered with
respect to the Trustee under any Bankruptcy Law;

     (c) a custodian or public officer takes charge of the Trustee or its property; or

     (d) the Trustee becomes incapable of acting.

     If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any
reason, the Company shall promptly appoint a successor Trustee. Within one year after the successor
Trustee takes office, the Holders of a majority in Principal Amount of the then

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outstanding Notes may appoint a successor Trustee to replace the successor Trustee appointed
by the Company.

     If a successor Trustee does not take office within 60 days after the retiring Trustee resigns
or is removed, the retiring Trustee, the Company, or the Holders of at least 10% in Principal
Amount of the then outstanding Notes may petition at the expense of the Company any court of
competent jurisdiction for the appointment of a successor Trustee.

     If the Trustee, after written request by any Holder who has been a Holder for at least six
months, fails to comply with Section 7.10, such Holder may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

     A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Thereupon, the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers and duties of the
Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to
Holders property held by it as Trustee to the successor Trustee; provided all sums owing to the
Trustee hereunder have been paid and subject to the lien provided for in Section 7.07.
Notwithstanding replacement of the Trustee pursuant to this Section 7.08, the Company’s obligations
under Section 7.07 shall continue for the benefit of the retiring Trustee.

     Section 7.09. Successor Trustee By Merger, etc.

     If the Trustee consolidates, merges or converts into, or transfers all or substantially all of
its corporate trust business to, another corporation, the successor corporation without any further
act shall be the successor Trustee.

     Section 7.10. Eligibility; Disqualification.

     There shall at all times be a Trustee hereunder that is a corporation organized and doing
business under the laws of the United States of America or of any state thereof that is authorized
under such laws to exercise corporate trustee power, that is subject to supervision or examination
by federal or state authorities and that has a combined capital and surplus of at least $50 million
as set forth in its most recent published annual report of condition. This Indenture shall always
have a Trustee who satisfies the requirements of TIA ss. 310(a)(1), (2) and (5). The Trustee is
subject to TIA ss. 310(b).

     Section 7.11. Preferential Collection of Claims Against the Company.

     The Trustee is subject to TIA ss. 311(a), excluding any creditor relationship listed in TIA
ss. 311(b). A Trustee who has resigned or been removed shall be subject to TIA ss. 311(a) to the
extent indicated therein.

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ARTICLE 8

Meetings of Holders of Notes

     Section 8.01. Purposes for Which Meetings May be Called.

     A meeting of Holders of Notes may be called at any time and from time to time pursuant to this
Article to make, give or take any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be made, given or taken by Holders of Notes.

     Section 8.02. Call, Notice and Place of Meetings.

     (a) The Trustee may at any time call a meeting of Holders of Notes for any purpose specified
in Section 8.01, to be held at such time and at such place in the Borough of Manhattan, The City of
New York, as the Trustee shall determine. Notice of every meeting of Holders of Notes, setting
forth the time and the place of such meeting and in general terms the action proposed to be taken
at such meeting, shall be given, in the manner provided in Section 12.02, not less than 21 nor more
than 180 days prior to the date fixed for the meeting.

     (b) In case at any time the Company, pursuant to a Board Resolution, or the Holders of at
least 10% in Principal Amount of the outstanding Notes shall have requested the Trustee to call a
meeting of the Holders of Notes for any purpose specified in Section 8.01, by written request
setting forth in reasonable detail the action proposed to be taken at the meeting, and the Trustee
shall not have mailed the notice of such meeting within 21 days after receipt of such request or
shall not thereafter proceed to cause the meeting to be held as provided herein, then the Company
or the Holders of Notes in the amount specified, as the case may be, may determine the time and the
place in the Borough of Manhattan, The City of New York, for such meeting and may call such meeting
for such purposes by giving notice thereof as provided in paragraph (a) of this Section.

     Section 8.03. Persons Entitled to Vote at Meetings.

     To be entitled to vote at any meeting of Holders of Notes, a Person shall be (i) a Holder of
one or more outstanding Notes, or (ii) a Person appointed by an instrument in writing as proxy for
a Holder or Holders of one or more outstanding Notes by such Holder or Holders. The only Persons
who shall be entitled to be present or to speak at any meeting of Holders shall be the Persons
entitled to vote at such meeting and their counsel, any representatives of the Trustee and its
counsel and any representatives of the Company and its counsel. In determining Holders entitled to
vote at any meeting of Holders of Notes, Notes owned by the Company, or by any Person directly or
indirectly controlling or controlled by or under direct or indirect common control with the
Company, shall be considered as though not outstanding.

     Section 8.04. Quorum; Action.

     The Persons entitled to vote a majority in aggregate Principal Amount of the outstanding Notes
shall constitute a quorum. In the absence of a quorum within 30 minutes of the time appointed for
any such meeting, the meeting shall, if convened at the request of Holders of Notes, be dissolved.
In any other case, the meeting may be adjourned for a period of not less than 10 days as determined
by the chairman of the meeting prior to the adjournment of such meeting.

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In the absence of a quorum at any such adjourned meeting, such adjourned meeting may be
further adjourned for a period not less than 10 days as determined by the chairman of the meeting
prior to the adjournment of such adjourned meeting (subject to repeated applications of this
sentence). Notice of the reconvening of any adjourned meeting shall be given as provided in Section
8.02(a), except that such notice need be given only once not less than five days prior to the date
on which the meeting is scheduled to be reconvened. Notice of the reconvening of an adjourned
meeting shall state expressly the percentage of the aggregate Principal Amount of the outstanding
Notes which shall constitute a quorum.

     Subject to the foregoing, at the reconvening of any meeting adjourned for a lack of a quorum,
the Persons entitled to vote 25% in aggregate Principal Amount of the outstanding Notes at the time
shall constitute a quorum for the taking of any action set forth in the notice of the original
meeting.

     At a meeting or an adjourned meeting duly reconvened and at which a quorum is present as
aforesaid, any resolution and all matters (other than a covenant or condition which under Section
9.02 cannot be modified or amended without the consent of the Holder of each outstanding Note
affected) shall be effectively passed and decided if passed or decided by the lesser of (i) the
Holders of not less than a majority in aggregate Principal Amount of outstanding Notes and (ii) the
Persons entitled to vote not less than 66-2/3% in aggregate Principal Amount of outstanding Notes
represented and entitled to vote at such meeting.

     Any resolution passed or decisions taken at any meeting of Holders of Notes duly held in
accordance with this Section shall be binding on all the Holders of Notes whether or not present or
represented at the meeting. The Trustee shall, in the name and at the expense of the Company,
notify all the Holders of Notes of any such resolutions or decisions pursuant to Section 12.02.

     Section 2.09 shall determine which Notes are considered to be “outstanding” for purposes of
this Section 8.04.

     Section 8.05. Determination of Voting Rights; Conduct and Adjournment of Meetings.

     (a) Notwithstanding any other provisions of this Indenture, the Trustee may make such
reasonable regulations as it may deem advisable for any meeting of Holders of Notes in regard to
proof of the holding of Notes and of the appointment of proxies and in regard to the appointment
and duties of inspectors of votes, the submission and examination of proxies, certificates and
other evidence of the right to vote, and such other matters concerning the conduct of the meeting
as it shall deem appropriate.

     (b) The Trustee shall, by an instrument in writing, appoint a temporary chairman (which may be
the Trustee) of the meeting, unless the meeting shall have been called by the Company or by Holders
of Notes as provided in Section 8.02(b), in which case the Company or the Holders of Notes calling
the meeting, as the case may be, shall in like manner appoint a temporary chairman. A permanent
chairman and a permanent secretary of the meeting shall be elected by vote of the Persons entitled
to vote a majority in aggregate Principal Amount of the outstanding Notes represented at the
meeting.

     (c) At any meeting, each Holder of a Note or proxy shall be entitled to one vote for each U.S.
$1,000 Principal Amount of Notes held or represented by him; provided, however, that

39

 

no vote shall be cast or counted at any meeting in respect of any Note challenged as not
outstanding and ruled by the chairman of the meeting to be not outstanding. The chairman of the
meeting shall have no right to vote, except as a Holder of a Note or proxy.

     (d) Any meeting of Holders of Notes duly called pursuant to Section 8.02 at which a quorum is
present may be adjourned from time to time by Persons entitled to vote a majority in aggregate
Principal Amount of the outstanding Notes represented at the meeting, and the meeting may be held
as so adjourned without further notice.

     Section 8.06. Counting Votes and Recording Action of Meetings.

     The vote upon any resolution submitted to any meeting of Holders of Notes shall be by written
ballots on which shall be subscribed the signatures of the Holders of Notes or of their
representatives by proxy and the Principal Amounts and certificate numbers of the outstanding Notes
held or represented by them. The permanent chairman of the meeting shall appoint two inspectors of
votes who shall count all votes cast at the meeting for or against any resolution and who shall
make and file with the secretary of the meeting their verified written reports in duplicate of all
votes cast at the meeting. A record, at least in duplicate, of the proceedings of each meeting of
Holders of Notes shall be prepared by the secretary of the meeting and there shall be attached to
said record the original reports of the inspectors of votes on any vote by ballot taken thereat and
affidavits by one or more Persons having knowledge of the facts setting forth a copy of the notice
of the meeting and showing that said notice was given as provided in Section 8.02 and, if
applicable, Section 8.04. Each copy shall be signed and verified by the affidavits of the permanent
chairman and secretary of the meeting and one such copy shall be delivered to the Company and
another to the Trustee to be preserved by the Trustee, the latter to have attached thereto the
ballots voted at the meeting. Any record so signed and verified shall be conclusive evidence of the
matters therein stated.

ARTICLE 9

Amendment, Supplement and Waiver

     Section 9.01. Without Consent of Holders of Notes.

     Notwithstanding Section 9.02 of this Indenture, the Company and the Trustee may amend or
supplement this Indenture or the Notes without the consent of any Holder of a Note:

     (a) to cure any ambiguity or correct or supplement any defective provision contained in the
Indenture; provided that such modification or amendment does not, in the good faith opinion of the
Board of Directors, adversely affect the interests of the Holders of Notes in any material respect;
provided further that any amendment made solely to conform the provisions of the Indenture to the
description of the Notes in the Exchange Offer Prospectus will not be deemed to adversely affect
the interests of the Holders;

     (b) to add covenants for the benefit of the Holders;

     (c) to add additional dates on which Holders may require the Company to repurchase their
Notes;

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     (d) to surrender any rights or powers conferred upon the Company;

     (e) to provide for the assumption of the Company’s obligations to Holders in the case of a
merger, consolidation, sale, transfer or lease pursuant to Article 5;

     (f) to increase the conversion rate in the manner described in Section 10.07, provided that
the increase will not adversely affect the interests of Holders in any material respect;

     (g) to comply with requirements of the Commission in order to effect or maintain the
qualification of this Indenture under the TIA or otherwise as necessary to comply with applicable
law;

     (h) to make provision with respect to the conversion rights of Holders pursuant to Section
10.15 or to make provision with respect to the repurchase rights of Holders of Notes pursuant to
Section 11.01 or Section 11.02;

     (i) to add or modify any other provision of this Indenture that the Company and the Trustee
may deem necessary or desirable and that will not adversely affect the interests of the Holders; or

     (j) to provide for the issuance of Additional Notes.

     Upon the request of the Company accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental Indenture, and upon receipt by the
Trustee of the documents described in Section 7.02, the Trustee shall join with the Company in the
execution of any amended or supplemental Indenture authorized or permitted by the terms of this
Indenture and to make any further appropriate agreements and stipulations that may be therein
contained, but the Trustee shall not be obligated to enter into such amended or supplemental
Indenture that affects its own rights, duties or immunities under this Indenture or otherwise.

     Section 9.02. With Consent of Holders of Notes.

     Except as provided below in this Section 9.02, this Indenture or the Notes may be amended or
supplemented with either (i) the written consent (or as otherwise in accordance with the Applicable
Procedures) of the Holders of at least a majority in aggregate Principal Amount of the Notes then
outstanding (including consents obtained in connection with a purchase of, or a tender offer or
exchange offer for, Notes), or (ii) by the adoption of a resolution, at a meeting of Holders of the
outstanding Notes at which a quorum is present, by the Holders of at least a majority in aggregate
Principal Amount of the outstanding Notes represented at such meeting. Section 2.09 shall determine
which Notes are considered to be “outstanding” for purposes of this Section 9.02.

     Upon the request of the Company accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental Indenture, and upon the filing with
the Trustee of evidence satisfactory to the Trustee of the consent of the Holders of Notes as
aforesaid, and upon receipt by the Trustee of the documents described in Section 7.02, the Trustee
shall join with the Company in the execution of such amended or supplemental Indenture unless such
amended or supplemental Indenture directly affects the Trustee’s own rights, duties

41

 

or immunities under this Indenture or otherwise, in which case the Trustee may in its
discretion, but shall not be obligated to, enter into such amended or supplemental Indenture.

     It shall not be necessary for the consent of the Holders of Notes under this Section 9.02 to
approve the particular form of any proposed amendment or supplement, but it shall be sufficient if
such consent approves the substance thereof.

     After an amendment or supplement under this Section 9.02 becomes effective, the Company shall
mail to the Holders of Notes affected thereby a notice briefly describing the amendment or
supplement. Any failure of the Company to mail such notice, or any defect therein, shall not,
however, in any way impair or affect the validity of any such amended or supplemental Indenture.

     However, without the consent or affirmative vote of each Holder affected, an amendment or
supplement under this Section 9.02 may not (with respect to any Notes held by a non-consenting
Holder):

     (a) change the Stated Maturity of the Principal Amount of, or any installment of interest on,
any Note;

     (b) reduce the Principal Amount of, or the premium, if any, on any Note;

     (c) reduce the interest rate or amount of interest on any Note;

     (d) change the currency of payment of the Principal Amount of, premium, if any, or interest on
any Note (including any payment of Redemption Price or Fundamental Change Repurchase Price in
respect of such Note);

     (e) impair the right to institute suit for the enforcement of any payment in respect of any
Note on or after the Stated Maturity thereof (or, in the case of redemption or any repurchase, on
or after the Redemption Date, Fundamental Change Repurchase Date or Five Year Repurchase Date, as
the case may be);

     (f) except as permitted by Section 10.15 adversely affect the right of Holders to convert any
Note as provided in Article 10;

     (g) reduce the Redemption Make Whole Amount or otherwise modify Section 10.08 of the Indenture
in a manner adverse to the Holders;

     (h) modify the provisions of Article 11 relating to notice and repurchase (including those
relating to the Fundamental Change Repurchase Date, the Fundamental Change Repurchase Price and the
Five Year Repurchase Date) in a manner adverse to the Holders;

     (i) modify the provisions of Article 3 in a manner adverse to the Holders;

     (j) reduce the requirements of Section 8.04 for quorum or voting, or reduce the percentage in
aggregate Principal Amount of the outstanding Notes the consent of whose Holders is required for
any such supplemental indenture or the consent of whose Holders is

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required for any waiver of compliance with certain provisions of this Indenture or certain
defaults hereunder and their consequences provided for in this Indenture; or

     (k) modify any of the provisions of this Section or Section 4.11 or 6.04, except to increase
any percentage contained herein or therein or to provide that certain other provisions of this
Indenture cannot be modified or waived without the consent of the Holder of each outstanding Note
affected thereby.

     Section 9.03. Compliance with Trust Indenture Act.

     Every amendment or supplement to this Indenture or the Notes shall be set forth in an amended
or supplemental Indenture that complies with the TIA as then in effect.

     Section 9.04. Revocation and Effect of Consents.

     Until an amendment or supplement becomes effective, a consent to it by a Holder of a Note is a
continuing consent by the Holder of a Note and every subsequent Holder of a Note or portion of a
Note that evidences the same debt as the consenting Holder’s Note, even if notation of the consent
is not made on any Note. However, any such Holder of a Note or subsequent Holder of a Note may
revoke the consent as to its Note if the Trustee receives written notice of revocation before the
date the supplement or amendment becomes effective. An amendment or supplement becomes effective in
accordance with its terms and thereafter binds every Holder.

     Section 9.05. Notation on or Exchange of Notes.

     The Trustee may place an appropriate notation about an amendment or supplement on any Note
thereafter authenticated. The Company in exchange for all Notes may issue and the Trustee shall,
upon receipt of an Authentication Order, authenticate new Notes that reflect the amendment or
supplement.

     Failure to make the appropriate notation or issue a new Note shall not affect the validity and
effect of such amendment or supplement.

     Section 9.06. Trustee to Sign Amendments, etc.

     The Trustee shall sign any amended or supplemental Indenture authorized pursuant to this
Article 9 if the amendment or supplement does not adversely affect the rights, duties, liabilities
or immunities of the Trustee. The Company may not sign an amendment or supplemental Indenture until
the Board of Directors approves it. In executing any amended or supplemental indenture, the Trustee
shall be entitled to receive and (subject to Section 7.01) shall be fully protected in relying
upon, in addition to the documents required by Section 12.04, an Officer’s Certificate and an
Opinion of Counsel stating that the execution of such amended or supplemental indenture is
authorized or permitted by this Indenture.

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ARTICLE 10

Conversion Of Notes

     Section 10.01. Conversion Privilege and Conversion Rate.

     (a) Subject to and upon compliance with the provisions of this Article, at the option of the
Holder thereof, any Note may be converted into fully paid and nonassessable shares (calculated as
to each conversion to the nearest 1/100th of a share) of Common Stock of the Company at the
Conversion Rate, determined as hereinafter provided, in effect at the time of conversion. Such
conversion right shall commence on the initial issuance date of the Notes and expire at the close
of business on the Business Day prior to the date of Maturity of the Notes, subject, in the case of
conversion of any Global Note, to any Applicable Procedures. In case a Note or portion thereof is
called for redemption at the election of the Company or the Holder thereof exercises its right to
require the Company to repurchase the Note, such conversion right in respect of the Note, or
portion thereof so called, shall expire at the close of business on the Business Day prior to the
Redemption Date, the Fundamental Change Repurchase Date or the Five Year Repurchase Date, as the
case may be, unless the Company defaults in making the payment due upon redemption or repurchase,
as the case may be (in each case subject as aforesaid to any Applicable Procedures with respect to
any Global Note); provided that, if a Holder has delivered notice of the exercise of its right to
have its Note repurchased pursuant to Section 11.01(c) or Section 11.02(c), such Holder may not
surrender such Note for conversion until such Holder has withdrawn its election to have its Note
repurchased in accordance with Section 11.01 or Section 11.02, as the case may be.

     The rate at which shares of Common Stock shall be delivered upon conversion (herein called the
“Conversion Rate”) shall be initially [          ] shares of Common Stock for each U.S.
$1,000 Principal Amount of Notes. The Conversion Rate shall be shall be adjusted (rounded to four
decimal places) in certain instances as provided in this Article 10.

     (b) If a transaction described in clause (2) of the definition of Change of Control occurs on
or prior to October 1, 2012, the Company shall give notice to the Trustee and all Holders (i) at
least ten scheduled Trading Days prior to the anticipated Effective Date of such transaction and
(ii) within 15 days after the actual Effective Date of such Change of Control. If a Holder elects
to convert Notes at any time following the notice described in clause (i) of the preceding sentence
until the Fundamental Change Repurchase Date corresponding to such Change of Control as set forth
in Section 11.01, such Holder shall be entitled to receive for each $1,000 Principal Amount of
Notes converted, in addition to a number of shares of Common Stock equal to the Conversion Rate, an
additional number of shares of Common Stock (the “Additional Shares”) as described below; provided
that if the Stock Price is greater than $[     ] per share (subject in each case to
adjustment as described below) or if the Stock Price is less than $[     ] per share
(subject to adjustment), the number of Additional Shares shall be zero. The number of Additional
Shares shall be determined by reference to the table attached as Schedule A hereto, based on the
Effective Date and the Stock Price; provided that if the Stock Price is between two Stock Price
amounts in the table or the Effective Date is between two Effective Dates in the table, the number
of Additional Shares shall be determined by a straight-line interpolation between the number of
Additional Shares set forth for the higher and lower Stock Price amounts and the two dates, as
applicable, based on a 365-day year. The Additional Shares will be delivered to Holders who elect
to convert their Notes in connection with an

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applicable Change of Control on the later of (i) five Business Days following the Effective
Date or (ii) the Conversion Settlement Date for those Notes.

     The Stock Prices set forth in the first row of the table in Schedule A hereto and set forth in
the proviso in the first sentence of the preceding paragraph shall be adjusted as of any date on
which the Conversion Rate of the Notes is adjusted. The adjusted Stock Prices shall equal the
Stock Prices applicable immediately prior to such adjustment, multiplied by a fraction, the
numerator of which is the Conversion Rate immediately prior to the adjustment giving rise to the
Stock Price adjustment and the denominator of which is the Conversion Rate as so adjusted. The
Company’s obligation to deliver Additional Shares shall be subject to adjustment in the same manner
as the Conversion Rate as set forth Section 10.07 and Section 10.15.

     (c) Notwithstanding the foregoing, the total number of shares of Common Stock issuable upon
conversion shall not exceed [     ] shares per $1,000 Principal Amount of Notes, subject to
adjustments in the same manner as the Conversion Rate as set forth in Section 10.07 and Section
10.15.

     (d) Promptly following the Effective Date, the Company shall calculate the Stock Price and the
number of Additional Shares based on the applicable Stock Price and Effective Date. No less than
five Business Days following the Effective Date, the Company shall notify the Trustee of the
results of such calculations and notify the Holders of the Stock Price and the number of Additional
Shares per $1,000 Principal Amount of Notes. The Company shall issue a press release containing
the information described in this paragraph and publish such information on its website.

     Section 10.02. Exercise of Conversion Privilege.

     (a) In order to exercise the conversion privilege, the Holder of any Note to be converted
shall surrender such Note, duly endorsed in blank, at any office or agency of the Company
maintained for that purpose pursuant to Section 4.02, accompanied by a duly signed conversion
notice substantially in the form set forth in Exhibit A stating that the Holder elects to convert
such Note or, if less than the entire Principal Amount thereof is to be converted, the portion
thereof to be converted. The date a Holder complies with these requirements for any Notes shall be
the “Conversion Date” with respect to such Notes.

     (b) Notes surrendered for conversion by a Holder after the close of business on any Regular
Record Date but prior to the next Interest Payment Date must be accompanied by payment in an amount
equal to the interest that the Holder is to receive on the Notes on such Interest Payment Date;
provided, however, that no such payment need be made (1) if the Company has specified a Redemption
Date that is after a Record Date and on or prior to the next Interest Payment Date, (2) if the
Company has specified a Fundamental Change Repurchase Date that is after a Record Date and on or
prior to the next Interest Payment Date or (3) unless any overdue interest exists at the time of
conversion with respect to such Note and then only to the extent of such overdue interest.

     (c) Notes shall be deemed to have been converted immediately prior to the close of business on
the Conversion Date, and at such time the rights of the Holders of such Notes as Holders shall
cease, and the Person or Persons entitled to receive the Common Stock issuable upon conversion
shall be treated for all purposes as the record holder or holders of such Common

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Stock at such time. The Company shall issue and deliver to the Trustee, for delivery to the
Holder, a certificate or certificates for the number of full shares of Common Stock issuable upon
conversion, or cash in lieu thereof pursuant to Section 10.04, together with payment in lieu of any
fraction of a share, as provided in Section 10.05 and any Redemption Make Whole Amount as required
by Section 10.08 on the “Conversion Settlement Date,” which shall be as promptly as practicable,
but no later than the fifth Business Day following the Conversion Date; provided that if the
Company elects cash settlement pursuant to Section 10.04, the Conversion Settlement Date shall be
the third Business Day following the determination of the Conversion Average Price.

     (d) Delivery to Holders of the full number of shares of Common Stock, or cash in lieu thereof,
into which the Notes are convertible pursuant to this Article 10, together with payment in lieu of
any fraction of a share, as provided in Section 10.05 and any Redemption Make Whole Amount as
required by Section 10.08 shall be deemed to satisfy the Company’s obligations with respect to such
Notes. Accordingly, except to the extent of any such Redemption Make Whole Amount, any accrued but
unpaid interest shall be deemed to be paid in full upon conversion, rather than cancelled,
extinguished or forfeited.

     (e) All shares of Common Stock delivered upon such conversion of Restricted Notes shall bear
restrictive legends substantially in the form of the legends required to be set forth on the
Restricted Notes pursuant to Section 2.07 and shall be subject to the restrictions on transfer
provided in such legends. Neither the Trustee nor any agent maintained for the purpose of such
conversion shall have any responsibility for the inclusion or content of any such restrictive
legends on such Common Stock; provided, however, that the Trustee or any agent maintained for the
purpose of such conversion shall have provided, to the Company or to the Company’s transfer agent
for such Common Stock, prior to or concurrently with a request to the Company to deliver such
Common Stock, written notice that the Notes delivered for conversion are Restricted Notes.

     (f) In the case of any Note which is converted in part only, upon such conversion the Company
shall execute and the Trustee shall authenticate and deliver to the Holder thereof, at the expense
of the Company, a new Note or Notes of authorized denominations in an aggregate Principal Amount
equal to the unconverted portion of the Principal Amount of such Note. A Note may be converted in
part, but only if the Principal Amount of such Note to be converted is any integral multiple of
U.S. $1,000 and the Principal Amount of such Note to remain outstanding after such conversion is
equal to U.S. $1,000 or any integral multiple of $1,000 in excess thereof.

     (g) If shares of Common Stock to be issued upon conversion of a Restricted Note, or Notes to
be issued upon conversion of a Restricted Note in part only, are to be registered in a name other
than that of the Beneficial Owner of such Restricted Note, then such Holder must deliver to the
Conversion Agent a Surrender Certificate, dated the date of surrender of such Restricted Note and
signed by such Beneficial Owner, as to compliance with the restrictions on transfer applicable to
such Restricted Note. Neither the Trustee nor any Conversion Agent, Registrar or Transfer Agent
shall be required to register in a name other than that of the Beneficial Owner, shares of Common
Stock or Notes issued upon conversion of any such Restricted Note not so accompanied by a properly
completed Surrender Certificate.

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          Section 10.03. Limitation on Beneficial Ownership

     Notwithstanding the foregoing, no Person will be entitled to acquire Beneficial Ownership of
shares of Common Stock delivered upon conversion to the extent (but only to the extent) that such
receipt would cause any Person to become, directly or indirectly, a Beneficial Owner of more than
the Specified Percentage of the shares of Common Stock outstanding at such time. With respect to
any conversion prior to October 1, 2011, the “Specified Percentage” shall be 4.9%, and with respect
to any conversion thereafter until Stated Maturity, the Specified Percentage shall be 9.9%. Any
purported delivery of shares of Common Stock upon conversion of Notes shall be void and have no
effect to the extent (but only to the extent) that such delivery would result in any Person
becoming the Beneficial Owner of more than the Specified Percentage of the shares of Common Stock
outstanding at such time. If any delivery of shares of Common Stock owed to any Person upon
conversion is not made, in whole or in part, as a result of these limitations, the Company’s
obligation to make such delivery shall not be extinguished and it shall deliver such shares as
promptly as practicable after, but in no event later than two Trading Days after, any such Person
gives notice to the Company that such delivery would not result in any Person being the Beneficial
Owner of more than the Specified Percentage of the shares of Common Stock outstanding at such time.
For the avoidance of doubt, the term “Beneficial Owner” as used in this Section 10.03 shall not
include (i) with respect to any Global Note, the nominee of the Depositary or any Person having an
account with the Depositary or its nominee or (ii) with respect to any Non-global Note, the Holder
of such Non-global Note unless, in each case, such nominee, account holder or Holder shall also be
a Beneficial Owner with respect to such Note.

     Section 10.04. Cash Settlement Option

     Upon conversion, the Company shall have the right to deliver, in lieu of shares of Common
Stock, cash or a combination of cash and Common Stock. The Company shall inform converting Holders
through the Trustee no later than the Business Day prior to the first day of the Conversion
Averaging Period if it elects to pay cash in lieu of delivering shares of Common Stock and shall
specify in such notice the percentage of the shares of Common Stock that would otherwise be
deliverable for which it will pay cash, unless it has already informed the Holders of its election
in a notice of redemption pursuant to Section 3.03.

     If the Company elects to pay cash upon conversion, such payment will be based on the
Conversion Average Price of the Common Stock. If the Company elects cash settlement, the Conversion
Settlement Date on which it will deliver to converting Holders the cash and shares of Common Stock,
if any, together with the cash or shares, if applicable, with respect to any Redemption Make Whole
Amount, shall be the third Business Day following the determination of the Conversion Average
Price. The Company shall also deliver cash in lieu of any fractional shares of Common Stock
issuable in connection with any conversion of Notes based upon the Conversion Average Price.

     Section 10.05. Fractions of Shares.

     No fractional shares of Common Stock shall be issued upon conversion of any Note or Notes. If
more than one Note shall be surrendered for conversion at one time by the same Holder, the number
of full shares which shall be issuable upon conversion thereof shall be computed on the basis of
the aggregate Principal Amount of the Notes (or specified portions

47

 

thereof) so surrendered. Instead of any fractional share of Common Stock which would otherwise
be issuable upon conversion of any Note or Notes (or specified portions thereof), unless Section
10.04 shall apply, the Company shall calculate and pay a cash adjustment in respect of such
fraction (calculated to the nearest 1/100th of a share) in an amount equal to the same fraction of
the Sale Price at the close of business on the Conversion Date (or round up the number of shares of
Common Stock issuable upon conversion of any Note or Notes to the nearest whole share).

     Section 10.06. Exchange in Lieu of Conversion

     When a Holder surrenders Notes for conversion, the Company may, unless it has called the
relevant Notes for redemption, direct the Conversion Agent to surrender, on or prior to the date
two Business Days following the Conversion Date, such Notes to a financial institution designated
by the Company for exchange in lieu of conversion. The Company must notify such financial
institution of the applicable Conversion Date. In order to accept any such Notes, the designated
institution must agree to deliver, in exchange for such Notes, a number of shares of Common Stock
equal to the Conversion Rate in effect at such time, or at its option, cash or a combination of
cash and shares of Common Stock in lieu thereof, calculated based on the Conversion Average Price,
plus cash for any fractional shares.

     If the designated institution accepts any such Notes, it will deliver the appropriate number
of shares of Common Stock (and cash, if any), or cash in lieu thereof, to the Conversion Agent and
the Conversion Agent will deliver those shares or cash to the Holder. Any Notes exchanged by the
designated institution will remain outstanding. If the designated institution agrees to accept any
Notes for exchange but does not timely deliver the related consideration, the Company will, as
promptly as practical thereafter, but not later than (1) the fifth Business Day following the
Conversion Date, or (2) if the designated institution elects to deliver cash or a combination of
cash and shares of Common Stock, the third Business Day following the determination of the
Conversion Average Price, convert the Notes and deliver shares of Common Stock, or, at the
Company’s option cash in lieu thereof based on such Conversion Average Price.

     If the designated institution declines to accept any Notes surrendered for exchange, the
Company will convert those Notes into shares of Common Stock, or cash in lieu thereof at the option
of the Company.

     Section 10.07. Adjustment of Conversion Rate.

     The Conversion Rate shall be subject to adjustments from time to time as follows:

     (a) In case the Company shall pay or make a dividend or other distribution in shares of Common
Stock, the Conversion Rate in effect at the opening of business on the day following the Record
Date fixed for the determination of shareholders entitled to receive such dividend or other
distribution, or the Record Date for such subdivision or combination, as the case may be, shall be
adjusted based on the following formula:

     where,

48

 

	 	 	 
	CR0 =

	 	the Conversion Rate in effect immediately prior to the ex-date for such
dividend or distribution, or the effective date of such subdivisions or
combinations of the Common Stock, as the case may be
	 
	 	 
	CR1 =

	 	the Conversion Rate in effect immediately after the ex-date for such
dividend or distribution, or the effective date of such subdivisions or
combinations of the Common Stock, as the case may be
	 
	 	 
	OS0 =

	 	the number of shares of Common Stock outstanding immediately prior to
the ex-date for such dividend or distribution, or the effective date of such
subdivisions or combinations of the Common Stock, as the case may be
	 
	 	 
	OS1 =

	 	the number of shares of Common Stock that would be outstanding
immediately after the ex-date for such dividend or distribution, or the effective
date of such subdivisions or combinations of the Common Stock, as the case may be

     If, after any such Record Date, any dividend or distribution is not in fact paid or the
outstanding shares of Common Stock are not subdivided or combined, as the case may be, the
Conversion Rate shall be immediately readjusted, effective as of the date the Board of Directors
determines not to pay such dividend or distribution, or subdivide or combine the outstanding shares
of Common Stock, as the case may be, to the Conversion Rate that would have been in effect if such
Record Date had not been fixed.

     (b) In case the Company shall issue rights or warrants to all holders of its Common Stock
entitling them to subscribe for or purchase shares of Common Stock for a period expiring 45 days or
less from the date of issuance of such rights or warrants at a price per share less than the
average of the Sale Prices of the Common Stock for the ten consecutive Trading Days prior to the
Business Day immediately preceding the announcement of the issuance of such rights, options or
warrants, the Conversion Rate in effect at the opening of business on the day following the Record
Date shall be adjusted based on the following formula:

     where,

	 	 	 
	CR0 =

	 	the Conversion Rate in effect immediately prior to the ex-date for such
distribution
	 
	 	 
	CR1 =

	 	the Conversion Rate in effect immediately after the ex-date for such
distribution
	 
	 	 
	OS0 =

	 	the number of shares of Common Stock outstanding immediately prior to
the ex-date of such distribution
	 
	 	 
	X =

	 	the total number of shares of Common Stock issuable pursuant to such
rights
	 
	 	 
	Y =

	 	the number of shares of Common Stock equal to the aggregate
price payable to exercise such rights divided by the average of the Sale Prices of
the

49

 

	 	 	 
	 

	 	Common Stock for the ten consecutive Trading Days ending on the Business Day
immediately preceding the ex-date for such distribution

     If, after any such Record Date, any such rights, options or warrants are not in fact issued,
or are not exercised prior to the expiration thereof, the Conversion Rate shall be immediately
readjusted, effective as of the date such rights, options or warrants expire, or the date the Board
of Directors determines not to issue such rights, options or warrants, to the Conversion Rate that
would have been in effect if the unexercised rights, options or warrants had never been granted or
such Record Date had not been fixed, as the case may be.

     (c) In case the Company shall pay a dividend or distribution consisting exclusively of cash to
all holders of its Common Stock, the Conversion Rate in effect at the opening of business on the
day following the Record Date for such dividend or distribution shall be adjusted based on the
following formula:

     where,

	 	 	 
	CR0 =

	 	the Conversion Rate in effect immediately prior to the ex-date for
such distribution
	 
	 	 
	CR1 =

	 	the Conversion Rate in effect immediately after the ex-date for such
distribution
	 
	 	 
	SP0 =

	 	the Current Market Price
	 
	 	 
	C =

	 	the amount in cash per share distributed by the Company to
holders of Common Stock

     In the event that C is greater than or equal to SP0, in lieu of the adjustment
contemplated, Holders will be entitled to participate ratably in the cash distribution as though
their Notes had been converted to shares of Common Stock on the applicable date of calculation for
the amounts to be received by holders of Common Stock. If after any such Record Date, any such
dividend or distribution is not in fact made, the Conversion Rate shall be immediately readjusted,
effective as of the date of the Board of Directors determines not to make such dividend or
distribution, to the Conversion Rate that would have been in effect if such Record Date had not
been fixed.

     (d) In case the Company shall, by dividend or otherwise, distribute to all holders of its
Common Stock evidences of its indebtedness, shares of any class of capital stock or other property
(including cash or assets or securities, but excluding (i) any rights, options or warrants referred
to in Section 10.07(b), (ii) any dividend or distribution paid exclusively in cash, (iii) any
dividend or distribution referred to in Section 10.07(a) or 10.07(e), and (iv) mergers or
consolidations to which Section 10.15 applies), the Conversion Rate in effect at the opening of
business on the day following the Record Date for such dividend or distribution shall be adjusted
based on the following formula:

     where,

50

 

	 	 	 
	CR0 =

	 	the Conversion Rate in effect immediately prior to the ex-date for such
distribution
	 
	 	 
	CR1 =

	 	the Conversion Rate in effect immediately after the ex-date for such
distribution
	 
	 	 
	SP0 =

	 	the Current Market Price
	 
	 	 
	FMV =

	 	the fair market value (as determined by the Board of Directors) of
the shares of capital stock, evidences of indebtedness, assets or property
distributed with respect to each outstanding share of Common Stock on the ex-date
for such distribution

     In the event that FMV is greater than or equal to SP0, in lieu of the adjustment
contemplated, Holders will be entitled to participate ratably in the relevant distribution as
though their Notes had been converted to shares of Common Stock on the applicable date of
calculation for the amounts to be received by holders of Common Stock. If after any such Record
Date, any such dividend or distribution is not in fact made, the Conversion Rate shall be
immediately readjusted, effective as of the date of the Board of Directors determines not to make
such dividend or distribution, to the Conversion Rate that would have been in effect if such Record
Date had not been fixed.

     Rights or warrants distributed by the Company to all holders of Common Stock entitling the
holders thereof to subscribe for or purchase shares of the Company’s Capital Stock (either
initially or under certain circumstances), which rights or warrants, until the occurrence of a
specified event or events (“Trigger Event”):

     (i) are deemed to be transferred with such shares of Common Stock,

     (ii) are not exercisable, and

     (iii) are also issued in respect of future issuances of Common Stock

shall be deemed not to have been distributed for purposes of this Section 10.07(d) (and no
adjustment to the Conversion Rate under this Section 10.07(d) will be required) until the
occurrence of the earliest Trigger Event. If such right or warrant is subject to subsequent events,
upon the occurrence of which such right or warrant shall become exercisable to purchase different
securities, evidences of indebtedness or other assets or entitle the holder to purchase a different
number or amount of the foregoing or to purchase any of the foregoing at a different purchase
price, then the occurrence of each such event shall be deemed to be the date of issuance and Record
Date with respect to a new right or warrant (and a termination or expiration of the existing right
or warrant without exercise by the holder thereof). In addition, in the event of any distribution
(or deemed distribution) of rights or warrants, or any Trigger Event or other event (of the type
described in the preceding sentence) with respect thereto, that resulted in an adjustment to the
Conversion Rate under this Section 10.07(d):

     (1) in the case of any such rights or warrants that shall all have been redeemed or
repurchased without exercise by any holders thereof, the Conversion Rate shall be readjusted
upon such final redemption or repurchase to give effect to such distribution or Trigger
Event, as the case may be, as though it were a cash distribution, equal to the per

51

 

share redemption or repurchase price received by a holder of Common Stock with respect
to such rights or warrant (assuming such holder had retained such rights or warrants), made
to all holders of Common Stock as of the date of such redemption or repurchase, and

     (2) in the case of such rights or warrants all of which shall have expired or been
terminated without exercise, the Conversion Rate shall be readjusted as if such rights and
warrants had never been issued.

     For purposes of this Section 10.07(d) and Section 10.07(a) and 10.07(b), any dividend or
distribution to which this Section 10.07(d) applies that also includes shares of Common Stock or a
subdivision or combination of Common Stock to which Section 10.07(a) applies, or rights or warrants
to subscribe for or purchase shares of Common Stock to which Section 10.07(b) applies (or any
combination thereof), shall be deemed instead to be:

     (1) a dividend or distribution of the evidences of indebtedness, assets, shares of
capital stock, rights or warrants other than such shares of Common Stock, such subdivision
or combination or such rights or warrants to which Section 10.07(a) and 10.07(b) apply,
respectively (and any Conversion Rate increase required by this 10.07(d) with respect to
such dividend or distribution shall then be made), immediately followed by

     (2) a dividend or distribution of such shares of Common Stock, such subdivision or
combination or such rights or warrants (and any further Conversion Rate increase required by
Section 10.07(a) and 10.07(b) with respect to such dividend or distribution shall then be
made), except that any shares of Common Stock included in such dividend or distribution
shall not be deemed “outstanding at the close of business on the Record Date” within the
meaning of Section 10.07(a) and any reduction or increase in the number of shares of Common
Stock resulting from such subdivision or combination shall be disregarded in connection with
such dividend or distribution.

     (e) In case the Company shall, by dividend or otherwise, distribute to all holders of its
Common Stock shares of Capital Stock of, or similar equity interests in, a Subsidiary or other
business unit of the Company (a “Spin-Off”), the Conversion Rate in effect immediately before 5:00
p.m. New York City time, on the fifteenth Trading Day immediately following, and including, the
effective date of the Spin-Off shall be increased based on the following formula:

     where,

	 	 	 
	CR0 =

	 	the Conversion Rate in effect immediately prior to the fifteenth
Trading Day immediately following, and including, the effective date of the
Spin-Off
	 
	CR1 =

	 	the Conversion Rate in effect immediately after the fifteenth Trading
Day immediately following, and including, the effective date of the Spin-Off
	 
	FMV0 =

	 	the average of the Sale Prices of the Capital Stock or similar equity
interest distributed to holders of Common Stock applicable to one share of Common

52

 

	 	 	 
	 

	 	Stock over the 10 Trading Days immediately following, and including, the fifth
Trading Day immediately following the effective date of the Spin-Off
	 
	 	 
	MP0 =

	 	the average of the Sale Prices of the Common Stock on the 10
consecutive Trading Day period immediately following, and including, the fifth
Trading Day immediately following the effective date of the Spin-Off

     If after any such Record Date, any such distribution is not in fact made, the Conversion Rate
shall be immediately readjusted, effective as of the date the Board of Directors determines not to
make such distribution, to the Conversion Rate that would have been in effect if such Record Date
had not been fixed.

     (f) In case the Company or any Subsidiary purchases all or any portion of the Common Stock
pursuant to a tender offer or exchange offer and the cash and value of any other consideration
included in the payment per share of the Common Stock exceeds the Current Market Price per share on
the Trading Day next succeeding the last date on which tenders or exchanges may be made pursuant to
such tender or exchange offer (the “Expiration Date”), the Conversion Rate shall be will be
adjusted based on the following formula:

     where,

	 	 	 
	CR0 =

	 	the Conversion Rate in effect on the Expiration Date
	 
	 	 
	CR1 =

	 	the Conversion Rate in effect immediately after the Expiration Date
	 
	 	 
	FMV =

	 	the fair market value (as determined by the Board of Directors) of the
aggregate value of all cash and any other consideration paid or payable for shares
of Common Stock validly tendered or exchanged and not withdrawn as of the
Expiration Date (the “Purchased Shares”)
	 
	 	 
	OS1 =

	 	the number of shares of Common Stock outstanding immediately after the
Expiration Date less any Purchased Shares
	 
	 	 
	OS0 =

	 	the number of shares of Common Stock outstanding immediately after the
Expiration Date, plus any Purchased Shares
	 
	 	 
	SP1 =

	 	the Sale Price of the Common Stock on the Trading Day next succeeding
the Expiration Date

     Such increase (if any) shall become effective immediately prior to the opening of business on
the day following the Expiration Time. In the event that the Company is obligated to purchase
shares pursuant to any such tender offer, but the Company is permanently prevented by applicable
law from effecting any such purchases or all such purchases are rescinded, the Conversion Rate
shall again be adjusted to be the Conversion Rate that would then be in effect if such tender or
exchange offer had not been made. If the application of this Section 10.07(f) to

53

 

any tender or exchange offer would result in a decrease in the Conversion Rate, no adjustment
shall be made for such tender or exchange offer under this Section 10.07(f).

     (g) In case of a tender or exchange offer made by a Person other than the Company or any
Subsidiary for an amount that increases the offeror’s ownership of Common Stock to more than
twenty-five percent (25%) of the Common Stock outstanding and shall involve the payment by such
Person of consideration per share of Common Stock having a fair market value (as determined by the
Board of Directors, whose determination shall be conclusive, and described in a resolution of the
Board of Directors) that as of the last date (the “Offer Expiration Date”) tenders or exchanges may
be made pursuant to such tender or exchange offer (as it shall have been amended) exceeds the Sale
Price per share of the Common Stock on the Trading Day next succeeding the Offer Expiration Date,
and in which, as of the Offer Expiration Date the Board of Directors is not recommending rejection
of the offer, the Conversation Rate shall be adjusted based on the following formula:

     where,

	 	 	 
	CR0 =

	 	the Conversion Rate in effect on the Offer Expiration Date
	 
	 	 
	CR1 =

	 	the Conversion Rate in effect immediately after the Offer Expiration Date
	 
	 	 
	FMV=

	 	the fair market value (as determined by the Board of Directors) of the
aggregate consideration payable to holders of Common Stock based on the acceptance
(up to any maximum specified in the terms of the tender or exchange offer) of all
shares validly tendered or exchanged and not withdrawn as of the Expiration Date
(the shares deemed so accepted, up to any such maximum, being referred to as the
“Accepted Purchased Shares”)
	 
	 	 
	OS1 =

	 	the number of shares of Common Stock outstanding immediately after the
Offer Expiration Date less any Accepted Purchased Shares
	 
	 	 
	OS0 =

	 	the number of shares of Common Stock outstanding immediately after the
Offer Expiration Date, including any Accepted Purchased Shares
	 
	 	 
	SP1 =

	 	the Sale Price of the Common Stock on the Trading Day next succeeding
the Offer Expiration Date

     Such adjustment shall become effective immediately prior to the opening of business on the day
following the Offer Expiration Date. In the event that such Person is obligated to purchase shares
pursuant to any such tender or exchange offer, but such Person is permanently prevented by
applicable law from effecting any such purchases or all such purchases are rescinded, the
Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in effect if
such tender or exchange offer had not been made. Notwithstanding the foregoing, the adjustment
described in this Section 10.07(g) shall not be made if, as of the Offer Expiration Date, the
offering documents with respect to such offer disclose a plan or intention to cause the Company to
engage in any transaction described in Section 10.15.

54

 

     (h) “Current Market Price” of the Common Stock on any day means the average of the Sale Price
of the Common Stock for each of the 10 consecutive Trading Days ending on the earlier of the day in
question and the day before the ex-date with respect to the issuance or distribution requiring such
computation.

     (A)

     Notwithstanding the foregoing, whenever successive adjustments to the Conversion Rate are
called for pursuant to this Section 10.07, such adjustments shall be made to the Current Market
Price as may be necessary or appropriate to effectuate the intent of this Section 10.07 and to
avoid unjust or inequitable results as determined in good faith by the Board of Directors.

     (i) “Ex-date,” when used:

     (A) with respect to any issuance or distribution, means the first date on
which the shares of the Common Stock trade on the applicable exchange or in the
applicable market, regular way, without the right to receive such issuance or
distribution;

     (B) with respect to any subdivision or combination of shares of Common Stock,
means the first date on which the Common Stock trades regular way on such exchange
or in such market after the time at which such subdivision or combination becomes
effective, and

     (C) with respect to any tender or exchange offer, means the first date on
which the Common Stock trades regular way on such exchange or in such market after
the Expiration Date or Offer Expiration Date of such offer.

     (j) “fair market value” shall mean the amount that a willing buyer would pay a willing seller
in an arm’s length transaction.

     (k) For purposes of this Section 10.07, the number of shares of Common Stock at any time
outstanding shall not include shares held in the treasury of the Company but shall include shares
issuable in respect of scrip certificates issued in lieu of fractions of shares of Common Stock.
The Company will not pay any dividend or make any distribution on shares of Common Stock held in
the treasury of the Company.

     (l) Adjustments to the Conversion Rate under this Section 10.07 shall be rounded to the fourth
decimal point and all other calculations under this Section 10.07 shall be made to the nearest cent
or to the nearest one-hundredth of a share, as the case may be.

     (m) The Company may make such increases in the Conversion Rate by any amount for any period of
at least 20 days. Whenever the Conversion Rate is increased pursuant to the preceding sentence, the
Company shall give notice of the increase to the Holders in the manner provided in Section 12.02 at
least fifteen (15) days prior to the date the increased Conversion Rate takes effect, and such
notice shall state the increased Conversion Rate and the period during which it will be in effect.
The Company may make such increases in the Conversion Rate, to the extent permitted by law and
subject to applicable rules of The Nasdaq Stock Market, in addition to the increases set forth
above, as the Board of Directors deems advisable to avoid or diminish

55

 

any income tax to holders of Common Stock resulting from any dividend or distribution of stock
(or rights to acquire stock) or from any event treated as such for income tax purposes.

     (n) To the extent that the Company has a rights plan in effect upon conversion of the Notes
into Common Stock, each converting Holder shall receive, in addition to shares of Common Stock, the
rights under the rights plan corresponding to the shares of Common Stock received upon conversion,
unless prior to any conversion, the rights shall have separated from the shares of Common Stock, in
which case the Conversion Rate shall be adjusted as of the date of such separation as if the
Company had distributed to all holders of Common Stock shares of the Company’s Capital Stock,
evidences of indebtedness or other property as provided in Section 10.07(d) , subject to
readjustment in the event of the expiration, termination or redemption of such rights.

     Section 10.08. Interest Make Whole Upon Conversion.

     Redemption Make Whole Amount. Any holders who convert Notes after a notice of redemption has
been sent pursuant to the terms of Article 3 and prior to October 1, 2012 shall receive, for each
$1,000 Principal Amount of Notes converted, in addition to a number of shares of Common Stock
determined pursuant to Section 10.01, or cash in lieu thereof pursuant to Section 10.04, the
Redemption Make Whole Amount. The “Redemption Make Whole Amount” shall equal the present value of
the interest on the Notes converted that would have been payable for the period from and including
the Redemption Date, to but excluding October 1, 2012.

     The Redemption Make Whole Amount shall be calculated by discounting the amount of such
interest on a semi-annual basis using a discount rate equal to 3.0% plus the arithmetic mean of the
yields under the respective headings “This Week” and “Last Week” published in the Statistical
Release under the caption “Treasury Constant Maturities” for the maturity (rounded to the nearest
month) corresponding to the period from and including the Redemption Date to but excluding October
1, 2012. If no maturity exactly corresponds to such maturity, yields for the two published
maturities most closely corresponding to such maturity shall be calculated pursuant to the
immediately preceding sentence and the applicable rate shall be interpolated or extrapolated from
such yields on a straight-line basis, rounding in each of such relevant periods to the nearest
month. For the purpose of calculating the applicable rate, the most recent Statistical Release
published prior to the date of determination of the Redemption Make Whole Amount shall be used.

     The term “Statistical Release” shall mean the statistical release designated “H.15(519)” or
any successor publication which is published weekly by the Federal Reserve System and which
establishes yields on actively traded U.S. government securities adjusted to constant maturities
or, if such statistical release is not published at the time of any determination under this
Section 10.08 , then such other reasonably comparable index that the Company shall designate.

     The Company may pay the Redemption Make Whole Amount in cash or in shares of Common Stock,
with the number of such shares determined based on the average of the Sale Prices of the Common
Stock over the ten Trading Days immediately preceding the applicable Conversion Date. If the
Company elects to pay the Redemption Make Whole Amount in shares of Common Stock, the number of
shares deliverable by the Company, together with the shares of

56

 

Common Stock deliverable upon conversion pursuant to Section 10.01, shall not exceed
[     ] shares of Common Stock per $1,000 Principal Amount of Notes, subject to the same adjustments as
the Conversion Rate pursuant to Section 10.07 and Section 10.15, and the Company shall deliver cash
with respect to the remainder of the Redemption Make Whole Amount, if any.

     Section 10.09. Notice of Adjustments of Conversion Rate.

     Whenever the Conversion Rate is adjusted as herein provided:

     (a) the Company shall compute the adjusted Conversion Rate in accordance with Section 10.07
and shall prepare a certificate signed by the Chief Financial Officer of the Company setting forth
the adjusted Conversion Rate and showing in reasonable detail the facts upon which such adjustment
is based, and such certificate shall promptly be filed with the Trustee and with each Conversion
Agent; and

     (b) upon each such adjustment, a notice stating that the Conversion Rate has been adjusted and
setting forth the adjusted Conversion Rate shall be required, and as soon as practicable after it
is required, such notice shall be provided by the Company to all Holders in accordance with Section
12.02. Neither the Trustee nor any Conversion Agent shall be under any duty or responsibility with
respect to any such certificate or the information and calculations contained therein, except to
exhibit the same to any Holder of Notes desiring inspection thereof at its office during normal
business hours, and shall not be deemed to have knowledge of any adjustment in the Conversion Rate
unless and until a Responsible Officer of the Trustee shall have received such a certificate. Until
a Responsible Officer of the Trustee receives such a certificate, the Trustee and each Conversion
Agent may assume without inquiry that the last Conversion Rate of which the Trustee has knowledge
of remains in effect.

     Section 10.10. Notice of Certain Corporate Action.

     In case:

     (1) the Company shall declare a dividend (or any other distribution) on its Common Stock; or

     (2) the Company shall authorize the granting to all or substantially all of the holders of its
Common Stock of rights, options or warrants to subscribe for or purchase any shares of capital
stock of any class or of any other rights; or

     (3) of any reclassification of the Common Stock, or of any consolidation, merger or share
exchange to which the Company is a party and for which approval of any stockholders of the Company
is required, or of the conveyance, sale, transfer or lease of the assets of the Company and its
Subsidiaries substantially as an entirety; or

     (4) of the voluntary or involuntary dissolution, liquidation or winding up of the Company;

     then the Company shall cause to be filed at each office or agency maintained for the purpose
of conversion of Notes pursuant to Section 4.02, and shall cause to be provided to all Holders in
accordance with Section 12.02, at least 20 days (or 10 days in any case specified in

57

 

clause (1) or (2) above) prior to the applicable record or effective date hereinafter
specified, a notice stating (x) the date on which a record is to be taken for the purpose of such
dividend, distribution, rights, options or warrants, or, if a record is not to be taken, the date
as of which the holders of Common Stock of record to be entitled to such dividend, distribution,
rights, options or warrants are to be determined or (y) the date on which such reclassification,
consolidation, merger, conveyance, transfer, sale, lease, dissolution, liquidation or winding up is
expected to become effective, and the date as of which it is expected that holders of Common Stock
of record shall be entitled to exchange their shares of Common Stock for securities, cash or other
property deliverable upon such reclassification, consolidation, merger, conveyance, transfer, sale,
lease, dissolution, liquidation or winding up. Neither the failure to give such notice or the
notice referred to in the following paragraph nor any defect therein shall affect the legality or
validity of the proceedings described in clauses (1) through (4) of this Section 10.10. If at the
time the Trustee shall not be the conversion agent, a copy of such notice shall also forthwith be
filed by the Company with the Trustee.

     The Company shall cause to be filed at the Corporate Trust Office and each office or agency
maintained for the purpose of conversion of Notes pursuant to Section 4.02, and shall cause to be
provided to all Holders in accordance with Section 12.02, notice of any tender offer by the Company
or any Subsidiary for all or any portion of the Common Stock at or about the time that such notice
of tender offer is provided to the public generally.

     Section 10.11. Company to Reserve Common Stock.

     The Company shall at all times reserve and keep available, free from preemptive rights, out of
its authorized but unissued Common Stock, for the purpose of effecting the conversion of Notes, the
full number of shares of Common Stock then issuable upon the conversion of all outstanding Notes.

     Section 10.12. Taxes on Conversions.

     Except as provided in the next sentence, the Company will pay any and all taxes and duties,
excluding any taxes relating to the net or gross income or gain to the Holder on conversion, that
may be payable in respect of the issue or delivery of shares of Common Stock on conversion of Notes
pursuant hereto. The Company shall not, however, be required to pay any tax or duty which may be
payable in respect of any transfer involved in the issue and delivery of shares of Common Stock in
a name other than that of the Holder of the Note or Notes to be converted, and no such issue or
delivery shall be made unless and until the Person requesting such issue has paid to the Company
the amount of any such tax or duty, or has established to the satisfaction of the Company that such
tax or duty has been paid.

     Section 10.13. Covenant as to Common Stock.

     The Company agrees that all shares of Common Stock which may be delivered upon conversion of
Notes, upon such delivery, will have been duly authorized and validly issued and will be fully paid
and nonassessable and, except as provided in Section 10.12, the Company will pay all taxes, liens
and charges with respect to the issue thereof.

58

 

     Section 10.14. Cancellation of Converted Notes.

     All Notes delivered for conversion shall be delivered to the Trustee or its agent to be
canceled by or at the direction of the Trustee, which shall dispose of the same as provided in
Section 2.12.

     Section 10.15. Provision in Case of Consolidation, Merger or Sale of Assets.

     In case of any recapitalization, reclassification or change in the Common Stock (other than
changes resulting from a subdivision or combination), a consolidation, merger or combination of the
Company with or into any other Person, any merger of another Person with or into the Company (other
than a merger which does not result in any reclassification, conversion, exchange or cancellation
of outstanding shares of Common Stock of the Company) or any conveyance, sale, transfer or lease of
the consolidated assets of the Company and its Subsidiaries substantially as an entirety, or any
statutory share exchange, in each case as a result of which holders of Common Stock are entitled to
receive stock, other securities, other property or assets (including cash or any combination
thereof) with respect to or in exchange for the Common Stock, the Person formed by such
consolidation or resulting from such merger or which acquires such assets, as the case may be,
shall execute and deliver to the Trustee a supplemental indenture providing that the Holder of each
Note then outstanding shall have the right thereafter, during the period such Note shall be
convertible as specified in Section 10.01, to convert such Note only into the kind and amount of
securities, cash and other property receivable upon such recapitalization, reclassification,
change, consolidation, merger, combination, sale, lease, transfer or statutory share exchange by a
holder of the number of shares of Common Stock of the Company into which such Note might have been
converted immediately prior to such recapitalization, reclassification, change, consolidation,
merger, combination, sale, lease, transfer or statutory share exchange, assuming such holder of
Common Stock of the Company (i) is not (A) a Person with which the Company consolidated or merged
with or into or which merged into or with the Company or to which such conveyance, sale, transfer
or lease was made, as the case may be (a “Constituent Person”), or (B) an Affiliate of a
Constituent Person and (ii) failed to exercise his rights of election, if any, as to the kind or
amount of securities, cash and other property receivable upon such recapitalization,
reclassification, change, consolidation, merger, combination, sale, lease, transfer or statutory
share exchange (provided that if the holders of the Common Stock have the right to elect the kind
or amount of securities, cash and other property receivable upon such consolidation, merger,
conveyance, sale, transfer, or lease for each share of Common Stock of the Company held immediately
prior to such recapitalization, reclassification, change, consolidation, merger, combination, sale,
lease, transfer or statutory share exchange by others than a Constituent Person or an Affiliate
thereof and in respect of which such rights of election shall not have been exercised
(“Non-electing Share”), then for the purpose of this Section 10.15 the kind and amount of
securities, cash and other property receivable upon such recapitalization, reclassification,
change, consolidation, merger, combination, sale, lease, transfer or statutory share exchange by
the holders of each Non-electing Share shall be deemed to be the weighted average of the types and
amounts so receivable per share by the Non-electing Shares upon the occurrence of such transaction
or event). Such supplemental indenture shall provide for adjustments which, for events subsequent
to the effective date of such supplemental indenture, shall be as nearly equivalent as may be
practicable to the adjustments provided for in this Article 10.

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     The above provisions of this Section 10.15 shall similarly apply to successive consolidations,
mergers, conveyances, sales, transfers or leases. Notice of the execution of such a supplemental
indenture shall be given by the Company to the Holder of each Note as provided in Section 12.02
within 20 days after execution thereof. Neither the Trustee nor any Conversion Agent shall be under
any responsibility to determine the correctness of any provisions contained in any such
supplemental indenture relating either to the kind or amount of shares of stock or other securities
or property or cash receivable by Holders of Notes upon the conversion of their Notes after any
such consolidation, merger, conveyance, transfer, sale or lease or to any such adjustment, but may
accept as conclusive evidence of the correctness of any such provisions, and shall be protected in
relying upon, an Opinion of Counsel with respect thereto, which the Company shall cause to be
furnished to the Trustee.

     Section 10.16. Responsibility of Trustee for Conversion Provisions.

     The Trustee, subject to the provisions of Section 7.01, and any Conversion Agent shall not at
any time be under any duty or responsibility to any Holder of Notes to determine whether any facts
exist which may require any adjustment of the Conversion Rate, or with respect to the nature or
extent of any such adjustment when made, or with respect to the method employed, herein or in any
supplemental indenture provided to be employed, in making the same, or whether a supplemental
indenture need be entered into. Neither the Trustee nor any Conversion Agent shall be accountable
with respect to the validity or value (or the kind or amount) of any Common Stock, or of any other
Notes or property or cash, which may at any time be issued or delivered upon the conversion of any
Note; and it or they do not make any representation with respect thereto. Neither the Trustee nor
any Conversion Agent shall be responsible for any failure of the Company to make or calculate any
cash payment or to issue, transfer or deliver any shares of Common Stock or share certificates or
other Notes or property or cash upon the surrender of any Note for the purpose of conversion.
Neither the Trustee nor any Conversion Agent shall be responsible for any failure of the Company to
comply with any of the covenants of the Company contained in this Article.

ARTICLE 11

Repurchase of Notes at the Option of the Holder upon a fundamental change

     Section 11.01. Right to Require Repurchase upon a Fundamental Change.

     (a) If a Fundamental Change occurs, each Holder shall have the right, at the Holder’s option,
to require the Company to repurchase, and upon the exercise of such right the Company shall
repurchase, for cash some or all of such Holder’s Notes not theretofore called for redemption, or
any portion of the Principal Amount thereof that is equal to U.S. $1,000 or any integral multiple
of U.S. $1,000 in excess thereof (provided that no single Note may be repurchased in part unless
the portion of the Principal Amount of such Note to be outstanding after such repurchase is equal
to U.S. $1,000 or integral multiples of U.S. $1,000 in excess thereof). The Company shall offer a
payment (the “Fundamental Change Repurchase Price”) equal to 100% of the Principal Amount of the
Notes to be repurchased plus any accrued and unpaid interest to but excluding the Fundamental
Change Repurchase Date, unless such Fundamental Change Repurchase Date falls after a Regular Record
Date and on or prior to the corresponding Interest Payment Date, in which case the Company will pay
the full amount of

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accrued and unpaid interest payable on such Interest Payment Date to the holder of record at
the close of business on the corresponding Regular Record Date. Whenever in this Indenture there is
a reference, in any context, to the Principal Amount of any Note as of any time, such reference
shall be deemed to include reference to the Fundamental Change Repurchase Price payable in respect
of such Note to the extent that such Fundamental Change Repurchase Price is, was or would be so
payable at such time, and express mention of the Fundamental Change Repurchase Price in any
provision of this Indenture shall not be construed as excluding the Fundamental Change Repurchase
Price in those provisions of this Indenture when such express mention is not made.

     (b) Within 20 days following any Fundamental Change, the Company shall mail or cause to be
mailed a notice to each Holder (with a copy to the Trustee) describing the transaction or
transactions that constitute the Fundamental Change and stating:

     (i) the repurchase date, which shall be a date specified by the Company that is not
less than 20 nor more than 35 Business Days from the date such notice is mailed (the
“Fundamental Change Repurchase Date”);

     (ii) the time by which the repurchase right must be exercised, which shall be the close
of business on the Fundamental Change Repurchase Date;

     (iii) the Fundamental Change Repurchase Price;

     (iv) a description of the procedure which a Holder must follow to exercise a repurchase
right, and the place or places where, or procedures by which, such Notes are to be
surrendered for payment of the Fundamental Change Repurchase Price;

     (v) that on the Fundamental Change Repurchase Date the Fundamental Change Repurchase
Price will become due and payable upon each such Note designated by the Holder to be
repurchased, and that interest thereon shall cease to accrue on and after said date;

     (vi) the Conversion Rate then in effect, the date on which the right to convert the
Notes to be repurchased will terminate (which shall be the close of business on the Business
Day immediately preceding the Fundamental Change Repurchase Date) and the place or places
where, or procedures by which, such Notes may be surrendered for conversion;

     (vii) the place or places that the Note with the “Option of Holder to Purchase” as
specified on the reverse of the Note shall be delivered;

     (viii) that any Note not tendered shall continue to accrue interest;

     (ix) that Holders shall be entitled to withdraw their election if the Paying Agent
receives, prior to 5:00 p.m., New York City time on the Fundamental Change Repurchase Date,
a telegram, telex, facsimile transmission or letter setting forth the name of the Holder,
the Principal Amount of Notes delivered for purchase, and a written statement that (a)
states such Holder is withdrawing its election to have the Notes purchased, (b) if
certificated Notes have been issued, states the certificate number of the

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withdrawn Notes, (c) if the Notes are not certificated, contains such statements as
required by the Depositary and (d) states the Principal Amount, if any, that remains subject
to the repurchase notice; and

     (x) that Holders whose Notes are being purchased only in part shall be issued new Notes
equal in Principal Amount to the unpurchased portion of the Notes surrendered, which
unpurchased portion must be equal to $1,000 in Principal Amount or an integral multiple
thereof.

     No failure of the Company to give the foregoing notices or defect therein shall limit any
Holder’s right to exercise a repurchase right or affect the validity of the proceedings for the
repurchase of Notes.

     If any of the foregoing provisions or other provisions of this Section 11.01 are inconsistent
with applicable law, such law shall govern.

     (c) To exercise a repurchase right pursuant to this Section 11.01, a Holder shall deliver to
the Trustee on or before the Fundamental Change Repurchase Date (i) written notice of the Holder’s
exercise of such right, which notice shall set forth the name of the Holder, the Principal Amount
of the Notes to be repurchased (and, if any Note is to repurchased in part, the certificate number
thereof, the portion of the Principal Amount thereof to be repurchased and the name of the Person
in which the portion thereof to remain outstanding after such repurchase is to be registered) and a
statement that an election to exercise the repurchase right is being made thereby and (ii) the
Notes with respect to which the repurchase right is being exercised. Holders may withdraw such
election at any time prior to 5:00 p.m., New York City time on the Fundamental Change Repurchase
Date. The right of the Holder to convert the Notes with respect to which the repurchase right is
being exercised shall continue until 5:00 p.m., New York City time on the Business Day prior to the
Fundamental Change Repurchase Date.

     (d) In the event a repurchase right shall be exercised in accordance with the terms hereof, on
the Fundamental Change Repurchase Date, the Company shall accept for payment all Notes or portions
thereof properly tendered, deposit with or pay or cause to be paid to the Trustee the Fundamental
Change Repurchase Price in cash for payment by the Trustee to the Holder on the Fundamental Change
Repurchase Date; provided, however, that installments of interest that mature on or prior to the
Fundamental Change Repurchase Date shall be payable in cash to the Holders of such Notes, or one or
more Predecessor Notes, registered as such at the close of business on the relevant Regular Record
Date; and deliver or cause to be delivered to the Trustee the Notes so accepted together with an
Officers’ Certificate stating the aggregate Principal Amount of Notes or portions thereof being
purchased by the Company.

     (e) If any Note (or portion thereof) surrendered for repurchase shall not be so paid on the
Fundamental Change Repurchase Date, the Principal Amount of such Note (or portion thereof, as the
case may be) shall, until paid, bear interest to the extent permitted by applicable law from the
Fundamental Change Repurchase Date at the rate specified therein, and each Note shall remain
convertible into Common Stock until the Principal Amount of such Note (or portion thereof, as the
case may be) shall have been paid or duly provided for.

     (f) Any Note which is to be repurchased only in part shall be surrendered to the Trustee
(with, if the Company or the Trustee so requires, due endorsement by, or a written

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instrument of transfer in form satisfactory to the Company and the Trustee duly executed by,
the Holder thereof or its attorney duly authorized in writing), and the Company shall execute, and
the Trustee shall authenticate and mail (or cause to be transferred by book entry) to the Holder of
such Note without service charge, a new Note or Notes, containing identical terms and conditions,
each in an authorized denomination in aggregate Principal Amount equal to and in exchange for the
unrepurchased portion of the Principal Amount of the Note so surrendered; provided that each such
new Note shall be in Principal Amount of $1,000 or an integral multiple thereof.

     (g) All Notes delivered for repurchase shall be delivered to the Trustee to be canceled at the
direction of the Trustee, which shall dispose of the same as provided in Section 2.12.

     (h) In connection with any purchase of Notes pursuant to this Section 11.01, the Company will
comply with Rule 13e-4 under the Exchange Act to the extent applicable at that time.

     (i) No Notes may be purchased by the Company pursuant to this Section 11.01 if the Principal
Amount of the Notes has been accelerated, and such acceleration has not been rescinded on or prior
to such date.

     Section 11.02. Repurchase of Notes at the Option of Holders.

     (a) Each Holder shall have the right, at such Holder’s option, to require the Company to
repurchase such Holder’s Notes, or any portion thereof that is an integral multiple of $1,000
Principal Amount, in cash, on October 1, 2012, October 1, 2017 and October 1, 2022 (each a “Five
Year Repurchase Date”), at a repurchase price of 100% of the Principal Amount of the Notes being
repurchased, plus accrued and unpaid interest to, but excluding, the Five Year Repurchase Date.
Notwithstanding the foregoing, if the Five Year Repurchase Date is during the Record Date Period,
then any accrued and unpaid interest shall be paid to the Person in whose name such Note was
registered at the close of business on the applicable Regular Record Date and the amount of any
such interest to be paid shall be excluded from the repurchase price.

     (b) Not less than 20 Business Days prior to each Five Year Repurchase Date, the Company shall
mail or cause to be mailed to all Holders of record on such date (with a copy to the Trustee) a
Five Year Repurchase Notice. No failure of the Company to give the foregoing notices and no defect
therein shall limit the Holders’ repurchase rights or affect the validity of the proceedings for
the repurchase of the Notes.

     (c) To exercise a repurchase right pursuant to this Section 11.02, a Holder shall deliver to
the Paying Agent, during the period beginning 20 Business Days prior to the applicable Five Year
Repurchase Date and ending at 5:00 p.m., New York City time, on the Business Day immediately prior
to the applicable Five Year Repurchase Date, (i) a written notice of repurchase (the “Five Year
Repurchase Notice”) in the form set forth on the reverse of the Note duly completed (if the Note is
certificated) or stating the following (if the Note is represented by a Global Note): (A) the
certificate number of the Note which the Holder will deliver to be repurchased (if the Note is
certificated) or that the relevant Five Year Repurchase Notice complies with the appropriate
Depositary procedures (if the Note is represented by Global Note), (B) the portion of the Principal
Amount of the Note which the Holder will deliver to be repurchased, which portion must be in
principal amounts of $1,000 or an integral multiple of

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$1,000 (provided that the remaining principal amount of Notes not subject to repurchase must
be in an integral multiple of $1,000) and (C) that such Note shall be repurchased as of the Five
Year Repurchase Date pursuant to the terms and conditions specified in the Note and in this
Indenture; together with (ii) such Notes duly endorsed for transfer (if the Note if certificated)
or book entry transfer of such Note (if such Note is represented by a Global Note). The delivery
of such Note to the Paying Agent with, or at any time after delivery of, the Five Year Repurchase
Notice (together with all necessary endorsements) at the office of the Paying Agent shall be a
condition to the receipt by the Holder of the repurchase price therefore; provided, however, that
such repurchase price shall be so paid pursuant to this Section 11.02 only if the Notes so
delivered to the Paying Agent shall conform in all respects to the description thereof in the Five
Year Repurchase Notice. All questions as to the validity, eligibility (including time of receipt)
and acceptance of any Note for repurchase shall be determined by the Company, whose determination
shall be final and binding absent manifest error.

     Holders may withdraw such election if such Holder shall deliver to the Paying Agent, at any
time prior to 5:00 p.m., New York City time, on the Business Day immediately prior to the
applicable Five Year Repurchase Date, a notice of withdrawal stating the following: (A) the
certificate numbers of the Notes to be withdrawn (if the Note is certificated) or that the notice
of withdrawal complies with the appropriate Depositary procedures (if the Note is represented by
Global Note), (B) the Principal Amount of the withdrawn Notes and (C) the Principal Amount of Notes
of such Holder, if any, that remains subject to the Five Year Repurchase Notice, which must be in
Principal Amounts of $1,000 or an integral multiple of $1,000.

     (d) The Company, if so requested, shall repurchase from the Holder thereof, pursuant to this
Section 11.02, a portion of a Note, if the principal amount of such portion is $1,000 or an
integral multiple of $1,000. Provisions of this Indenture that apply to the repurchase of all of a
Note also apply to the repurchase of such portion of such Note.

     (e) No Notes may be redeemed by the Company pursuant to this Section 11.02 if the Principal
Amount of the Notes has been accelerated (other than as a result of a failure to pay the repurchase
price), and such acceleration has not been rescinded on or prior to the applicable Five Year
Repurchase Date.

     (f) The Paying Agent shall promptly notify the Company of the receipt by it of any Five Year
Repurchase Notice or written notice of withdrawal thereof.

     (g) The Company may arrange for a third party to purchase any Notes (provided that the Trustee
is so notified by the Company promptly) for which the Company receives a valid Five Year Repurchase
Notice that is not withdrawn, in the manner and otherwise in compliance with the requirements set
forth herein. If a third party purchases any Notes under these circumstances, interest will
continue to accrue on those Notes and such Notes will continue to be outstanding after the Five
Year Repurchase Date. The third party subsequently may resell such purchased Notes to other
investors.

     (h) Any repurchase by the Company contemplated pursuant to the provisions of this Section
11.02 shall be consummated by the delivery of the consideration to be received by the Holder (i) on
the Five Year Repurchase Date if the book-entry transfer or delivery of the Notes to the Paying
Agent is effected prior to 5:00 p.m., New York City time on the Business Day prior to the Five Year
Repurchase Date, and (ii) if delivered later, within two (2) Business Days

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following the time of the book-entry transfer or delivery of the Note. Payment of the
repurchase price for a Note for which a Five Year Repurchase Notice has been delivered and not
withdrawn is conditioned upon book-entry transfer or delivery of the Notes, together with necessary
endorsements, to the Paying Agent.

     (i) In connection with any purchase of Notes pursuant to this Section 11.02, the Company will
comply with Rule 13e-4 under the Exchange Act to the extent applicable at that time. If any of the
foregoing provisions or other provisions of this Section 11.02 are inconsistent with applicable
law, such law shall govern.

     Section 11.03. Consolidation, Merger, etc.

     In the case of any consolidation, merger or combination of the Company with or into any other
Person, any merger of another Person with or into the Company (other than a merger which does not
result in any reclassification, conversion, exchange or cancellation of outstanding shares of
Common Stock of the Company) or any conveyance, sale, transfer or lease of the consolidated assets
of the Company and its Subsidiaries substantially as an entirety to which Section 10.15 applies, in
which the Common Stock of the Company is changed or exchanged as a result into the right to receive
shares of stock and other property or assets (including cash) that includes shares of Common Stock
of the Company or common stock of another Person that are, or upon issuance will be, traded on a
United States national securities exchange or approved for trading on an established automated
over-the-counter trading market in the United States and such shares constitute at the time such
change or exchange becomes effective in excess of 50% of the aggregate fair market value of such
shares of stock and other securities, property and assets (including cash) (as determined by the
Company, which determination shall be conclusive and binding), then the Person formed by such
consolidation or resulting from such merger or combination or which acquires the properties or
assets (including cash) of the Company, as the case may be, shall execute and deliver to the
Trustee a supplemental indenture (which shall comply with the Trust Indenture Act as in force at
the date of execution of such supplemental indenture) modifying the provisions of this Indenture
relating to the right of Holders to cause the Company to repurchase the Notes following a
Fundamental Change, including the applicable provisions of this Article 11 and the definitions of
the Common Stock and Change of Control, as appropriate, and such other related definitions set
forth herein as determined in good faith by the Company (which determination shall be conclusive
and binding), to make such provisions apply in the event of a subsequent Fundamental Change to the
common stock and the issuer thereof if different from the Company and Common Stock of the Company
(in lieu of the Company and the Common Stock of the Company).

ARTICLE 12

Miscellaneous

     Section 12.01. Trust Indenture Act Controls.

     If any provision of this Indenture limits, qualifies or conflicts with the duties imposed by
TIA ss. 318(c), the imposed duties shall control.

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     Section 12.02. Notices.

     Any notice or communication by the Company or the Trustee to the others is duly given if in
writing and delivered in Person or mailed by first class mail (registered or certified, return
receipt requested), telex, telecopier or overnight air courier guaranteeing next day delivery, to
the others’ address:

     If to the Company:

c/o Charter Communications, Inc.

12405 Powerscourt Drive

St. Louis, Missouri 63131

Telecopier No.: (314) 965-8793

Attention: Secretary

With a copy to:

Gibson, Dunn & Crutcher LLP

200 Park Avenue

New York, New York 10166

Telecopier No.: (212) 351-4008

Attention: Joerg H. Esdorn, Esq.

If to the Trustee:

The Bank of New York Trust Company, N.A.

Corporate Trust Services

2 North LaSalle Street, Suite 1020

Chicago, Illinois 60602

     The Company or the Trustee, by notice to the others may designate additional or different
addresses for subsequent notices or communications.

     All notices and communications (other than those sent to Holders) shall be deemed to have been
duly given: at the time delivered by hand, if personally delivered; five Business Days after being
deposited in the mail, postage prepaid, if mailed; when answered back, if telexed; when receipt
acknowledged, if telecopied; and the next Business Day after timely delivery to the courier, if
sent by overnight air courier guaranteeing next day delivery.

     Any notice or communication to a Holder shall be mailed by first class mail, certified or
registered, return receipt requested, or by overnight air courier guaranteeing next day delivery to
its address shown on the register kept by the Registrar. Any notice or communication shall also be
so mailed to any Person described in TIA ss. 313(c), to the extent required by the TIA. Failure to
mail a notice or communication to a Holder or any defect in it shall not affect its sufficiency
with respect to other Holders.

     If a notice or communication is mailed in the manner provided above within the time
prescribed, it is duly given, whether or not the addressee receives it.

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     If the Company mails a notice or communication to Holders, it shall mail a copy to the Trustee
and each Agent at the same time.

     Section 12.03. Communication by Holders of Notes with Other Holders of Notes.

     Holders may communicate pursuant to TIA ss. 312(b) with other Holders with respect to their
rights under this Indenture or the Notes. The Company, the Trustee, the Registrar and anyone else
shall have the protection of TIA ss. 312(c).

     Section 12.04. Certificate and Opinion as to Conditions Precedent.

     Upon any request or application by the Company to the Trustee to take any action under this
Indenture, the Company shall furnish to the Trustee:

     (a) an Officers’ Certificate in form and substance reasonably satisfactory to the Trustee
(which shall include the statements set forth in Section 12.05) stating that, in the opinion of the
signers, all conditions precedent and covenants, if any, provided for in this Indenture relating to
the proposed action have been satisfied; and

     (b) an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee (which
shall include the statements set forth in Section 12.05) stating that, in the opinion of such
counsel, all such conditions precedent and covenants have been satisfied.

     Section 12.05. Statements Required in Certificate or Opinion.

     Each certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture (other than a certificate provided pursuant to TIA ss. 314(a)(4)) shall
comply with the provisions of TIA ss. 314(e) and shall include:

     (a) a statement that the Person making such certificate or opinion has read such covenant or
condition;

     (b) a brief statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are based;

     (c) a statement that, in the opinion of such Person, he or she has made such examination or
investigation as is necessary to enable him to express an informed opinion as to whether or not
such covenant or condition has been satisfied; and

     (d) a statement as to whether or not, in the opinion of such Person, such condition or
covenant has been satisfied.

     Section 12.06. Tax Treatment of the Notes.

     The Company agrees, and by acceptance of a beneficial interest in a Note each Holder and any
Beneficial Owner of a Note shall be deemed to agree, to treat, for United States federal income tax
purposes, the Notes as debt instruments that are subject to Treasury regulation section 1.1275-4 or
any successor provision (the “contingent payment regulations”). For United States federal income
tax purposes, the Company further agrees, and by acceptance of a beneficial interest in a Note each
Holder and any Beneficial Owner of a Note shall be deemed to

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agree (i) to treat the fair market value of the Common Stock received upon the conversion of a
Note as a contingent payment for purposes of the contingent payment regulations, (ii) to accrue
interest with respect to outstanding Notes as original issue discount for United States federal
income tax purposes (i.e., Tax Original Issue Discount) according to the “noncontingent bond
method,” set forth in the contingent payment regulations, using the comparable yield of 15%
compounded semi-annually, and (iii) to be bound by the projected payment schedule determined by the
Company pursuant to the contingent payment regulations. Holders or Beneficial Owners may obtain
the issue price, amount of Tax Original Issue Discount, issue date, comparable yield and projected
payment schedule, by submitting a written request for it to the Company at the following address:
Charter Communications, Inc., 12405 Powerscourt Drive, St. Louis, Missouri 63131, Attention:
Director of Investor Relations.

     The Company acknowledges and agrees, and by acceptance of a beneficial interest in a Note each
Holder and any Beneficial Owner of a Note shall be deemed to acknowledge and agree, that (i) the
comparable yield means the annual yield the Company would pay, as of the Issue Date, on a
noncontingent, nonconvertible, fixed-rate debt instrument with terms and conditions otherwise
similar to those of the Notes and (ii) the comparable yield and the projected payment schedule that
a Holder or Beneficial Owner may obtain as described above do not constitute a representation by
the Company regarding the actual amounts that will be paid on the Notes or the value of the Common
Stock into which the Notes may be converted.

     Section 12.07. Rules by Trustee and Agents.

     The Trustee may make reasonable rules for action by or at a meeting of Holders. The Registrar
or Paying Agent may make reasonable rules and set reasonable requirements for its functions.

     Section 12.08. No Personal Liability of Directors, Officers, Employees, Members and
Stockholders.

     No director, officer, employee, incorporator, member or stockholder of the Company, as such,
shall have any liability for any obligations of the Company under the Notes, this Indenture or for
any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder
of Notes by accepting a Note waives and releases all such liability. The waiver and release are
part of the consideration for issuance of the Notes.

     Section 12.09. Governing Law.

     THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE
AND THE NOTES WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT
THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. EACH OF THE PARTIES
HERETO AGREES TO SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE OR THE NOTES.

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     Section 12.10. No Adverse Interpretation of Other Agreements.

     This Indenture may not be used to interpret any other indenture, loan or debt agreement of the
Company or its Subsidiaries or of any other Person. Any such indenture, loan or debt agreement may
not be used to interpret this Indenture.

     Section 12.11. Successors.

     All agreements of the Company in this Indenture and the Notes, as the case may be, shall bind
its successors. All agreements of the Trustee in this Indenture shall bind its successors.

     Section 12.12. Severability.

     In case any provision in this Indenture or the Notes, as the case may be, shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the remaining provisions
shall not in any way be affected or impaired thereby.

     Section 12.13. Counterpart Originals.

     The parties may sign any number of copies of this Indenture. Each signed copy shall be an
original, but all of them together represent the same agreement.

     Section 12.14. Table of Contents, Headings, etc.

     The Table of Contents, Cross-Reference Table and Headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not to be considered a part of
this Indenture and shall in no way modify or restrict any of the terms or provisions.

ARTICLE 13

Satisfaction And Discharge

     Section 13.01. Satisfaction and Discharge of Indenture.

     This Indenture shall cease to be of further effect (except as to any surviving rights of
registration of transfer or exchange or conversion of Notes herein expressly provided for), and the
Trustee, on demand of and at the expense of the Company, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture, when

     (a) either

     (i) all Notes theretofore authenticated and delivered (other than (i) Notes which have
been destroyed, lost or stolen and which have been replaced or paid as provided in Section
2.08 and (ii) Notes for whose payment money has theretofore been deposited in trust or
segregated and held in trust by the Company and thereafter repaid to the Company or
discharged from such trust,) have been delivered to the Trustee for cancellation; or

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     (ii) all such Notes not theretofore delivered to the Trustee for cancellation have
become due and payable and the Company has deposited or caused to be deposited with the
Trustee as trust funds in trust for the purpose an amount sufficient to pay and discharge
the entire indebtedness on such Notes not theretofore delivered to the Trustee for
cancellation, for the Principal Amount (and premium, if any) and interest to the date of
such deposit;

     (b) the Company has paid or caused to be paid all other sums payable hereunder by the Company;
and

     (c) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture have been complied with. Notwithstanding the
satisfaction and discharge of this Indenture pursuant to this Article 14, the obligations of the
Company to the Trustee, and the obligations of the Trustee under Section 13.02 shall survive such
satisfaction and discharge.

     Section 13.02. Application of Trust Money.

     All money deposited with the Trustee pursuant to Section 13.01 shall be held in trust and
applied by it, in accordance with the provisions of the Notes and this Indenture, to the payment,
either directly or through any Paying Agent as the Trustee may determine, to the Persons entitled
thereto, of the Principal Amount (and premium, if any) and interest for whose payment such money
has been deposited with the Trustee.

{Signatures on following page}

70

 

     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed as of
the day and year first above written.

	 	 	 	 	 
	CHARTER COMMUNICATIONS, INC.	 	 
	 
	 	 	 	 
	By:

	 	 
 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	THE BANK OF NEW YORK TRUST 

     COMPANY, N.A.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

71

 

SCHEDULE A

Effective Date

1

 

EXHIBIT A

{FACE OF NOTE}

     FOR PURPOSES OF SECTIONS 1272, 1273 AND 1275 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED
(THE “CODE”), THIS SECURITY IS BEING ISSUED WITH TAX ORIGINAL ISSUE DISCOUNT AND THE ISSUE DATE OF
THIS SECURITY IS OCTOBER [   ], 2007. IN ADDITION, THIS SECURITY IS SUBJECT TO UNITED STATES
FEDERAL INCOME TAX REGULATIONS GOVERNING CONTINGENT PAYMENT DEBT INSTRUMENTS. FOR PURPOSES OF
SECTIONS 1272, 1273 AND 1275 OF THE CODE, THE COMPARABLE YIELD OF THIS SECURITY IS 15.00%,
COMPOUNDED SEMI-ANNUALLY (WHICH WILL BE TREATED AS THE YIELD TO MATURITY FOR UNITED STATES FEDERAL
INCOME TAX PURPOSES).

     CHARTER COMMUNICATIONS, INC. (THE “COMPANY”) AGREES, AND BY ACCEPTING A BENEFICIAL OWNERSHIP
INTEREST IN THIS SECURITY EACH HOLDER AND ANY BENEFICIAL OWNER OF THIS SECURITY WILL BE DEEMED TO
HAVE AGREED, FOR UNITED STATES FEDERAL INCOME TAX PURPOSES (1) TO TREAT THIS SECURITY AS A DEBT
INSTRUMENT THAT IS SUBJECT TO TREAS. REG. SEC. 1.1275-4 (THE “CONTINGENT PAYMENT REGULATIONS”), (2)
TO TREAT THE FAIR MARKET VALUE OF ANY COMMON STOCK RECEIVED UPON ANY CONVERSION OF THIS SECURITY AS
A CONTINGENT PAYMENT FOR PURPOSES OF THE CONTINGENT PAYMENT REGULATIONS, AND (3) TO ACCRUE INTEREST
WITH RESPECT TO THE SECURITY AS TAX ORIGINAL ISSUE DISCOUNT FOR UNITED STATES FEDERAL INCOME TAX
PURPOSES ACCORDING TO THE “NONCONTINGENT BOND METHOD,” SET FORTH IN THE CONTINGENT PAYMENT
REGULATIONS, USING THE COMPARABLE YIELD OF 15.00% COMPOUNDED SEMI-ANNUALLY AND THE PROJECTED
PAYMENT SCHEDULE DETERMINED BY THE COMPANY. THE COMPANY AGREES TO PROVIDE PROMPTLY TO THE HOLDER
OF THIS SECURITY, UPON WRITTEN REQUEST, THE ISSUE PRICE, AMOUNT OF TAX ORIGINAL ISSUE DISCOUNT,
ISSUE DATE, COMPARABLE YIELD AND PROJECTED PAYMENT SCHEDULE. ANY SUCH WRITTEN REQUEST SHOULD BE
SENT TO THE COMPANY AT THE FOLLOWING ADDRESS: CHARTER COMMUNICATIONS, INC, 12405 POWERSCOURT DRIVE,
ST. LOUIS, MISSOURI 63131, ATTENTION: SENIOR VICE PRESIDENT, INVESTOR RELATIONS.

{THE FOLLOWING LEGEND SHALL APPEAR ON THE FACE OF EACH RESTRICTED NOTE:

     THIS SECURITY AND THE SHARES OF CLASS A COMMON STOCK OF CHARTER COMMUNICATIONS, INC. (THE
“COMPANY’’) ISSUABLE UPON CONVERSION OF THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT’’), OR THE SECURITIES LAWS OF ANY STATE OR OTHER
JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED,
SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE

 

 

DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT
SUBJECT TO, SUCH REGISTRATION.

     THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO
OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE
(THE “RESALE RESTRICTION TERMINATION DATE’’) WHICH IS TWO YEARS AFTER
THE LAST ORIGINAL ISSUE DATE HEREOF, ONLY (A) TO THE COMPANY OR ANY
OF ITS SUBSIDIARIES, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS
BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS
THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER
THE SECURITIES ACT (“RULE 144A’’), TO A PERSON IT REASONABLY BELIEVES IS
A “QUALIFIED INSTITUTIONAL BUYER’’ AS DEFINED IN RULE 144A THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A, OR (D) PURSUANT TO ANY OTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S RIGHT PRIOR
TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (D) TO
REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR
OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE
REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.}

     {THE FOLLOWING LEGEND SHALL APPEAR ON THE FACE OF EACH GLOBAL NOTE:

     THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF THE DEPOSITARY OR A NOMINEE OF THE DEPOSITARY, WHICH MAY BE TREATED BY
THE COMPANY, THE TRUSTEE AND ANY AGENT THEREOF AS OWNER AND HOLDER OF THIS NOTE FOR ALL PURPOSES.

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE
& CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

A-2

 

 

     UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE REGISTERED
FORM IN THE LIMITED CIRCUMSTANCES REFERRED TO IN THE INDENTURE, THIS GLOBAL NOTE MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF
THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY
SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.}

A-3

 

 

CHARTER COMMUNICATIONS, INC.

6.50% Convertible Senior Notes due 2027

CUSIP NO. [      ]

No. R-

Principal Amount: ${          }

     CHARTER COMMUNICATIONS, INC., a Delaware corporation (the “Company”, which term includes any
successor corporation under the Indenture hereinafter referred to) promises to pay to                     
or registered assigns, the Principal Amount (as defined in the
Indenture referred to on the reverse side of this Note) on October 1, 2027.

Interest Payment Dates: April 1 and October 1

Regular Record Dates: March 15 and September 15

     Reference is hereby made to the further provisions of this Note set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

 

 

Dated: [           ]

	 	 	 	 	 	 	 
	 	 	CHARTER COMMUNICATIONS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 
 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

     This is one of the 6.50% Convertible Senior Notes due 2027 referred to in the within-mentioned
Indenture:

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK TRUST COMPANY, N.A.,
as Trustee
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	  

Authorized
Signatory:
	 	 

 

 

{BACK OF NOTE}

6.50% Convertible Senior Notes due 2027

     Capitalized terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

     1. INTEREST. The Company promises to pay interest on the Principal Amount of this Note at
the rate of 6.50% per annum from October [    ], 2007 until Maturity. The Company will pay
interest semi-annually in arrears on April 1 and October 1 of each year (each an “Interest Payment
Date”), or if any such day is not a Business Day, on the next succeeding Business Day. Interest on
the Notes will accrue from the most recent date to which interest has been paid or, if no interest
has been paid, from the date of issuance; provided that if there is no existing Default in the
payment of interest, and if this Note is authenticated between a Regular Record Date referred to on
the face and the next succeeding Interest Payment Date, interest shall accrue from such next
succeeding Interest Payment Date. The first Interest Payment Date shall be April 1, 2008. The
Company shall pay interest (including post-petition interest in any proceeding under any Bankruptcy
Law) on overdue principal and premium, if any, from time to time on demand at a rate that is 1% per
annum in excess of the rate then in effect; and it shall pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue installments of interest (without
regard to any applicable grace periods) from time to time on demand at the same rate to the extent
lawful. Interest will be computed on the basis of a 360-day year of twelve 30-day months.

     2. METHOD OF PAYMENT. The Company shall pay interest on the Notes (except defaulted interest)
to the Persons who are registered Holders of Notes at the close of business on the March 15 or
September 15 immediately preceding the Interest Payment Date, even if such Notes are canceled after
such record date and on or before such Interest Payment Date, except as provided in Section 2.13 of
the Indenture with respect to defaulted interest. The Notes will be payable as to Principal
Amount, premium, if any, and interest at the office or agency of the Company maintained for such
purpose within or without the City and State of New York, or, at the option of the Company, payment
of interest may be made by check mailed to the Holders at their addresses set forth in the Note
Register, and provided that payment by wire transfer of immediately available funds will be
required with respect to principal of and interest and premium on all Global Notes and all other
Notes the Holders of which shall have provided wire transfer instructions to the Company or the
Paying Agent. Such payment shall be in such coin or currency of the United States of America as at
the time of payment is legal tender for payment of public and private debts.

     3. PAYING AGENT, REGISTRAR AND CONVERSION AGENT. Initially, The Bank of New York Trust
Company, N.A., the Trustee under the Indenture, will act as Paying Agent, Registrar and Conversion
Agent. The Company may change any Paying Agent, Registrar or Conversion Agent without notice to
any Holder. The Company or any of its Subsidiaries may act in any such capacity.

     4. INDENTURE. The Company issued the Notes under an Indenture dated as of October [ ],
2007 (the “Indenture”) between the Company and the Trustee. The terms of the

A-R-5

 

 

Notes include those stated in the Indenture and those made part of the Indenture by reference
to the TIA. The Notes are subject to all such terms, and Holders are referred to the Indenture and
the TIA for a statement of such terms. To the extent any provision of this Note conflicts with the
express provisions of the Indenture, the provisions of the Indenture shall govern and be
controlling. The Notes are obligations of the Company. The aggregate Principal Amount of Notes
that may be outstanding under the Indenture is unlimited; provided that upon initial issuance, the
aggregate principal amount of Notes outstanding shall not exceed $[ ], except as provided
in Section 2.08 of the Indenture.

     5. OPTIONAL REDEMPTION. Prior to October 1, 2010, the Company may redeem the Notes, in whole
or in part, for cash at a price (the “Redemption Price”) equal to 100% of the Principal Amount of
such Notes plus accrued and unpaid interest, if any, on such Notes to, but excluding, the
Redemption Date, if the Sale Price of the Common Stock has exceeded, for at least 20 Trading Days
in any consecutive 30 Trading Day period ending on the date the Company gives such notice, 180% of
the Conversion Price on each such Trading Day. Commencing on, and including, October 1, 2010
until, but excluding, October 1, 2012, the Company may redeem the Notes, in whole or in part, for
cash at the Redemption Price plus accrued and unpaid interest, if any, on such Notes to, but
excluding, the Redemption Date, if the Sale Price of the Common Stock has exceeded, for at least 20
Trading Days in any consecutive 30 Trading Day period ending on the date the Company gives such
notice, 150% of the Conversion Price on each such Trading Day. On and after October 1, 2012, the
Company may redeem the Notes, in whole or in part, for cash at the Redemption Price plus accrued
and unpaid interest, if any, on such Notes to, but excluding, the Redemption Date.

     6. NOTICE OF REDEMPTION. Notice of redemption will be mailed by first class mail at least 30
days but not more than 60 days before the Redemption Date to each Holder whose Notes are to be
redeemed at its registered address. Notices of redemption may not be conditional. No Notes of
$1,000 Principal Amount or less may be redeemed in part. Notes in denominations larger than $1,000
Principal Amount may be redeemed in part but only in whole multiples of $1,000 Principal Amount,
unless all of the Notes held by a Holder are to be redeemed. On and after the Redemption Date,
interest ceases to accrue on Notes or portions thereof called for redemption.

     7. MANDATORY REDEMPTION. Except as otherwise provided in Article 11 of the Indenture, the
Company shall not be required to make mandatory redemption payments with respect to the Notes.

     8. REPURCHASE AT OPTION OF HOLDER. If a Fundamental Change occurs, the Company shall, in
accordance with the terms of the Indenture, make an offer to repurchase for cash all or any part
(equal to $1,000 or an integral multiple thereof) of each Holder’s Notes at a purchase price equal
to 100% of the Principal Amount of the Notes to be purchased, plus any accrued and unpaid interest
to but excluding the Fundamental Change Repurchase Date, unless such Fundamental Change Repurchase
Date falls after a Record Date and on or prior to the corresponding Interest Payment Date, in which
case the Company will pay the full amount of accrued and unpaid interest payable on such Interest
Payment Date to the holder of record at the close of business on the corresponding Record Date.
Within 20 days following any Fundamental

A-R-6

 

 

Change, the Company shall mail a notice to each Holder describing the transaction or
transactions that constitute the Fundamental Change and offering to repurchase Notes on the
Fundamental Change Repurchase Date specified in such notice, pursuant to the procedures required by
the Indenture and described in such notice.

     Each Holder shall have the right, at such Holder’s option, to require the Company to
repurchase such Holder’s Notes, or any portion thereof that is an integral multiple of $1,000
Principal Amount, in cash, on October 1, 2012, October 1, 2017 and October 1, 2022, at a repurchase
price of 100% of the Principal Amount of the Notes being repurchased, plus accrued and unpaid
interest to, but excluding, the Five Year Repurchase Date unless such Five Year Repurchase Date
falls after a Record Date and on or prior to the corresponding Interest Payment Date, in which case
the Company will pay the full amount of accrued and unpaid interest payable on such Interest
Payment Date to the holder of record at the close of business on the corresponding Record Date.
Not less than 20 Business Days prior to each Five Year Repurchase Date, the Company shall mail a a
written notice of repurchase in the form set forth on the reverse of this Note.

     9. DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered form without coupons in
denominations of $1,000 Principal Amount and integral multiples of $1,000 Principal Amount. The
transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture. The
Registrar and the Trustee may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents and the Company may require a Holder to pay any taxes and fees
required by law or permitted by the Indenture.

     10. PERSONS DEEMED OWNERS. The registered Holder of a Note may be treated as its owner for
all purposes.

     11. AMENDMENT AND SUPPLEMENT. The Indenture or the Notes may be amended or supplemented only
as set forth in Article 9 of the Indenture.

     12. DEFAULTS AND REMEDIES. The Notes shall have the Events of Default set forth in Section
6.01 of the Indenture. In the case of an Event of Default set forth in Section 6.01(f) or (g), the
Principal Amount of all outstanding Notes will become due and payable without further action or
notice. If any other Event of Default occurs and is continuing, the Trustee by notice to the
Company or the Holders of at least 25% in Principal Amount of the then outstanding Notes by notice
to the Company and the Trustee may declare the Principal Amount of all the Notes to be due and
payable immediately. Holders may not enforce the Indenture or the Notes except as provided in the
Indenture. Holders shall have such other rights as set forth in Article 6 of the Indenture.

     13. CONVERSION. Subject to and upon compliance with the provisions of the Indenture, the
Holder of this Note is entitled, at its option, to convert this Note (or any portion of the
Principal Amount hereof that is an integral multiple of U.S.$1,000, provided that the unconverted
portion of such Principal Amount is U.S.$1,000 or any integral multiple of U.S.$1,000 in excess
thereof) into fully paid and nonassessable shares of Common Stock of the Company at an initial
Conversion Rate of [          ] shares of Common Stock for each U.S.$1,000 Principal Amount of
Notes (or at the current adjusted Conversion Rate if an

A-R-7

 

 

adjustment has been made as provided in the Indenture), plus the Redemption Make Whole Amount
if required pursuant to the terms of the Indenture.

     The Conversion Rate is subject to adjustment as provided in the Indenture.

     14. TRUSTEE DEALINGS WITH COMPANY. The Trustee, in its individual or any other capacity, may
make loans to, accept deposits from, and perform services for the Company or its Affiliates, and
may otherwise deal with the Company or its Affiliates, as if it were not the Trustee.

     15. NO RECOURSE AGAINST OTHERS. A director, officer, employee, incorporator or stockholder of
the Company, as such, shall not have any liability for any obligations of the Company under the
Notes or the Indenture or for any claim based on, in respect of, or by reason of, such obligations
or their creation. Each Holder by accepting a Note waives and releases all such liability. The
waiver and release are part of the consideration for the issuance of the Notes

     16. GOVERNING LAW. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO
CONSTRUE THIS NOTE AND THE INDENTURE WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF
LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED
THEREBY.

     17. AUTHENTICATION. This Note shall not be valid until authenticated by the manual signature
(which may be by facsimile) of the Trustee or an authenticating agent.

     18. ABBREVIATIONS. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TENANT (= tenants by the entireties), JT TEN (=
joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).

     19. CUSIP NUMBERS. No representation is made as to the accuracy of any CUSIP numbers either
as printed on the Notes or as contained in any notice of redemption and reliance may be placed only
on the other identification numbers placed thereon.

     The Company will furnish to any Holder upon written request and without charge a copy of the
Indenture. Requests may be made to:

Charter Communications, Inc.

12405 Powerscourt Drive

St. Louis, Missouri 63131

Attention: Secretary

Telecopier No.: (314) 965-0555

A-R-8

 

 

Schedule I

[Include Schedule I only for a Global Note]

CHARTER COMMUNICATIONS, INC.

6.50% Convertible Senior Note Due 2027

No.

The initial Principal Amount of this Global Note is $                    .

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Authorized Signature
	 

	 	 	 	Notation Explaining Principal
	 	of Trustee or
	Date

	 	Principal Amount
	 	Amount Recorded
	 	Custodian
	 

	 	 
	 	 
	 	 

 A-R-9

 

ASSIGNMENT FORM

     To assign this Note, fill in the form below:

	 	 	 
	(I) or (we) assign and transfer this Note to:
	 	 
	 

	 	 
	 

	 	(Insert assignee’s legal name)

 

(Insert assignee’s soc. sec. or tax I.D. no.)

 

 

 

 

(Print or type assignee’s name, address and zip code)

and irrevocably appoint
       to        transfer this Note on the
books of the Company. The agent may substitute another to act for him.

	 	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	 

	 	Your Signature:	 	 
	 

	 	 	 	 
	 

	 	 	 	(Sign exactly as your name appears on the face of this Note)

	 	 	 	 	 
	 

	 	Signature Guarantee*:	 	 
	 

	 	 	 	 

 

			
	*	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the
Trustee).

 A-R-10

 

OPTION OF HOLDER TO ELECT PURCHASE

     If you want to elect to have this Note purchased by the Company pursuant to Article 11 of the
Indenture, check below:

     |  | Purchase pursuant to Article 11

     If you want to elect to have only part of the Note purchased by the Company pursuant to
Article 11 of the Indenture, state the Principal Amount you elect to have purchased:

$                                         

Date:                                         

	 	 	 	 	 
	 

	 	Your Signature:	 	 
	 

	 	 	 	 
	 

	 	 	 	(Sign exactly as your name appears on the face of this Note)

	 	 	 	 	 
	 

	 	Tax Identification No.:	 	 
	 

	 	 	 	 

	 	 	 	 	 
	 

	 	Signature Guarantee*:	 	 
	 

	 	 	 	 

 

			
	*	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the
Trustee).

 A-R-11

 

CONVERSION NOTICE

     The undersigned Holder of this Note hereby irrevocably exercises the option to convert this
Note, or any portion of the Principal Amount hereof (which is U.S.$1,000 or an integral multiple of
U.S.$1,000 in excess thereof, provided that the unconverted portion of such Principal Amount is
U.S. $1,000 or any integral multiple of U.S. $1,000 in excess thereof) below designated, into
shares of Common Stock in accordance with the terms of the Indenture referred to in this Note, and
directs that such shares, together with a check in payment for any fractional share, any other
amounts payable to the Holder in connection with such conversion and any Notes representing any
unconverted Principal Amount hereof, be delivered to and be registered in the name of the
undersigned unless a different name has been indicated below. If shares of Common Stock or Notes
are to be registered in the name of a Person other than the undersigned, (a) the undersigned will
pay all transfer taxes payable with respect thereto and (b) signature(s) must be guaranteed by an
Eligible Guarantor Institution with membership in an approved signature guarantee program pursuant
to Rule 17Ad-15 under the Notes Exchange Act of 1934. Any amount required to be paid by the
undersigned on account of interest accompanies this Note.

	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	Signature(s)

	 	 	 	 	 
	If shares or Notes are to be registered in the
name of a Person other than the Holder, please
print such Person’s name and address:
	 	 	 	 
	 
	 	 	 	 
	 

Name

	 	 	 	 
	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

(Address)

	 	 	 	 
	 
	 	 	 	 
	 

Social Security or other Identification Number, if any

	 	 	 	 
	 
	 
	 	 	 	 
	 

(Signature Guaranteed)

	 	 	 	 

If only a portion of the Notes is to be converted, please indicate:

	1.	 	Principal Amount to be converted: U.S. $                    

 A-R-12

 

	2.	 	Principal Amount and denomination of Notes representing unconverted principal amount to be
issued:
	 
	 	 	Amount: U.S.                     $ Denominations: U.S. $                    

(U.S.$1,000 or any integral multiple of U.S.$1,000 in excess thereof, provided that the unconverted
portion of such Principal Amount is U.S. $1,000 or any integral multiple of U.S. $1,000 in excess
thereof)

 A-R-13

 

FIVE YEAR REPURCHASE NOTICE

     The undersigned registered owner of this Note hereby irrevocably acknowledges receipt of a
notice from Charter Communications, Inc. (the “Company") regarding the right of Holders to elect to
require the Company to repurchase the Notes and requests and instructs the Company to repay the
entire principal amount of this Note, or the portion thereof (which is $1,000 or an integral
multiple thereof) below designated, in cash, in accordance with the terms of the Indenture at the
price of 100% of such entire principal amount or portion thereof, together with accrued and unpaid
interest to, but excluding, the Five Year Repurchase Date, to the registered holder hereof.
Capitalized terms used herein but not defined shall have the meanings ascribed to such terms in the
Indenture. The Notes shall be repurchased by the Company as of the Five Year Repurchase Date,
pursuant to the terms and conditions specified in the Indenture.

	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	Signature(s)

	 	 	 	 	 
	 

Social Security or other Identification Number, if any

	 	 	 	 
	 
	 	 	 	 
	 

(Signature Guaranteed)

	 	 	 	 

If only a portion of the Notes are to be repurchased, please indicate:

	1.	 	Principal Amount to be repurchased: U.S. $                    
	 
	2.	 	Principal Amount and denomination of Notes representing unrepurchased Principal Amount to be
issued:
	 
	 	 	Amount: U.S.                     $ Denominations: U.S. $                    

(U.S.$1,000 or any integral multiple of U.S.$1,000 in excess thereof, provided that the
unrepurchased portion of such Principal Amount is U.S. $1,000 or any integral multiple of U.S.
$1,000 in excess thereof)

 A-R-14

 

ANNEX A — FORM OF RESTRICTED NOTES CERTIFICATE

RESTRICTED NOTES CERTIFICATE

(For transfers pursuant to Section 2.07(b)(ii) and 2.07(b)(iii) of the Indenture)

The Bank of New York Trust Company, N.A.

2 North LaSalle Street, Suite 1020

Chicago, Illinois 60602

Attention: Corporate Trust Services

Fax: [          ]

	 	 	Re: 6.50% CONVERTIBLE SENIOR NOTES DUE 2027 OF CHARTER
COMMUNICATIONS, INC. (THE “NOTES”)

     Reference is made to the Indenture, dated as of October [          ], 2007 (the “Indenture”), from
Charter Communications, Inc. (the “Company”) to The Bank of New York Trust Company, N.A., as
Trustee. Terms used herein and defined in the Indenture or Rule 144 under the U.S. Securities Act
of 1933 (the “Securities Act”) are used herein as so defined.

     This certificate relates to U.S. $          Principal Amount of Notes, which are
evidenced by the following certificate(s) (the “Specified Notes”):

     CUSIP No. [          ]

     CERTIFICATE No(s).                     

     The person in whose name this certificate is executed below (the “Undersigned”) hereby
certifies that either (i) it is the sole beneficial owner of the Specified Notes or (ii) it is
acting on behalf of all the beneficial owners of the Specified Notes and is duly authorized by them
to do so. Such beneficial owner or owners are referred to herein collectively as the “Owner”. If
the Specified Notes are represented by a Global Note, they are held through the Depositary or an
Agent Member in the name of the Undersigned, as or on behalf of the Owner. If the Specified Notes
are not represented by a Global Note, they are registered in the name of the Undersigned, as or on
behalf of the Owner.

     The Owner has requested that the Specified Notes be transferred to a person (the “Transferee”)
who will take delivery in the form of a Restricted Note. In connection with such transfer, the
Owner hereby certifies that such transfer is being effected pursuant to an effective registration
statement under the Securities Act or it is being effected in accordance with Rule 144A, or
pursuant to another exemption from registration under the Securities Act (if available) or Rule 144
under the Securities Act and all applicable laws of the states of the United States and other
jurisdictions. Accordingly, the Owner hereby further certifies as follows:

     (1) Rule 144A Transfers. If the transfer is being effected in accordance with Rule 144A:

 

 

     (A) the Specified Notes are being transferred to a person that the Owner and any person
acting on its behalf reasonably believe is a “qualified institutional buyer” within the
meaning of Rule 144A, acquiring for its own account or for the account of a qualified
institutional buyer; and

     (B) the Owner and any person acting on its behalf have taken reasonable steps to ensure
that the Transferee is aware that the Owner may be relying on Rule 144A in connection with
the transfer; and

     (2) Rule 144 Transfers. If the transfer is being effected pursuant to Rule 144:

     (A) the transfer is occurring after a holding period of at least one year (computed in
accordance with paragraph (d) of Rule 144) has elapsed since the date the Specified Notes
were acquired from the Company or from an affiliate (as such term is defined in Rule 144) of
the Company, whichever is later, and is being effected in accordance with the applicable
amount, manner of sale and notice requirements of paragraphs (e), (f) and (h) of Rule 144;
or

     (B) the transfer is occurring after a period of at least two years has elapsed since
the date the Specified Notes were acquired from the Company or from an affiliate (as such
term is defined in Rule 144) of the Company, whichever is later, and the Owner is not, and
during the preceding three months has not been, an affiliate of the Company.

     (3) Transfers Pursuant to Other Securities Act Exemptions. If the transfer is being effected
pursuant to a Securities Act exemption other than ones set forth in (1) or (2) above, there shall
be delivered to the Company an opinion of counsel with respect to such Owners.

     This certificate and the statements contained herein are made for your benefit and the benefit
of the Company.

	 	 	 	 	 	 	 
	 

	 	Dated:	 	 	 	 
	 

	 	 	 	 

	 	 

     Print the name of the Undersigned, as such term is defined in the second paragraph of this
certificate.)

	 	 	 	 	 	 	 
	 

	 	Dated:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

     (If the Undersigned is a corporation, partnership or fiduciary, the title of the person signing on
behalf of the Undersigned must be stated.)

2

 

ANNEX B — FORM OF UNRESTRICTED NOTES CERTIFICATE

UNRESTRICTED NOTES CERTIFICATE

(For removal of Restricted Notes Legend pursuant to Section 2.07(c))

The Bank of New York Trust Company, N.A.

2 North LaSalle Street, Suite 1020

Chicago, Illinois 60602

Attention: Corporate Trust Services

Fax: [          ]

	 	 	RE: 6.50% CONVERTIBLE SENIOR NOTES DUE 2027 OF CHARTER
COMMUNICATIONS, INC. (THE “NOTES”)

     Reference is made to the Indenture, dated as of October [     ], 2007 (the “Indenture”), from
Charter Communications, Inc. (the “Company”) to The Bank of New York Trust Company, N.A., as
Trustee. Terms used herein and defined in the Indenture or in Rule 144 under the U.S. Securities
Act of 1933 (the “Securities Act”) are used herein as so defined.

     This certificate relates to U.S.$        Principal Amount of Notes, which are
evidenced by the following certificate(s) (the “Specified Notes”):

     CUSIP No. [          ]

     CERTIFICATE No(s).                    

     The person in whose name this certificate is executed below (the “Undersigned”) hereby
certifies that either (i) it is the sole beneficial owner of the Specified Notes or (ii) it is
acting on behalf of all the beneficial owners of the Specified Notes and is duly authorized by them
to do so. Such beneficial owner or owners are referred to herein collectively as the “Owner”. If
the Specified Notes are represented by a Global Note, they are held through the Depositary or an
Agent Member in the name of the Undersigned, as or on behalf of the Owner. If the Specified Notes
are not represented by a Global Note, they are registered in the name of the Undersigned, as or on
behalf of the Owner.

     The Owner has requested that the Specified Notes be exchanged for Notes bearing no Restricted
Notes Legend pursuant to Section 2.07(c) of the Indenture. In connection with such exchange, the
Owner hereby certifies that the exchange is occurring (i) pursuant to an effective registration
statement under the Securities Act, or (ii) after a period of at least two years has elapsed since
the date the Specified Notes were acquired from the Company or from an “affiliate” (as such term is
defined in Rule 144) of the Company, whichever is later, and the Owner is not, and during the
preceding three months has not been, an affiliate of the Company. The Owner also acknowledges that
any future transfers of the Specified Notes must comply with all applicable Notes laws of the
states of the United States and other jurisdictions.

     This certificate and the statements contained herein are made for your benefit and the benefit
of the Company.

 

 

	 	 	 	 	 	 	 
	 

	 	Dated:	 	 	 	 
	 

	 	 	 	 

	 	 

     Print the name of the Undersigned, as such term is defined in the second paragraph of this
certificate.)

	 	 	 	 	 	 	 
	 

	 	Dated:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

     (If the Undersigned is a corporation, partnership or fiduciary, the title of the person
signing on behalf of the Undersigned must be stated.)

2

 

ANNEX C — FORM OF SURRENDER CERTIFICATE

     In connection with the certification contemplated by Section 10.02 relating to compliance with
certain restrictions relating to transfers of Restricted Notes, such certification shall be
provided substantially in the form of the following certificate, with only such changes thereto as
shall be approved by the Company:

CERTIFICATE

CHARTER COMMUNICATIONS, INC.

6.50% CONVERTIBLE SENIOR NOTES DUE 2027

     This is to certify that as of the date hereof with respect to U.S.$        
Principal Amount of the above-captioned Notes surrendered on the date hereof (the “Surrendered
Notes”) for registration of transfer, or for conversion or repurchase where the Notes issuable upon
such conversion or repurchase are to be registered in a name other than that of the undersigned
Holder (each such transaction being a “transfer”), the undersigned Holder (as defined in the
Indenture) certifies that the transfer of Surrendered Notes associated with such transfer complies
with the restrictive legend set forth on the face of the Surrendered Notes for the reason checked
below:

	 	 	 
	                    

	 	The transfer of the Surrendered Notes is being made pursuant to an
effective registration statement under the Securities Act; or
	 
	 	 
	                    

	 	The transfer of the Surrendered Notes complies with Rule 144A under
the Securities Act; or
	 
	 	 
	                    

	 	The transfer of the Surrendered Notes complies with Rule 144 under
the United States Securities Act of 1933, as amended (the
“Securities Act”); or
	 
	 	 
	                    

	 	The transfer of the Surrendered Notes has been made pursuant to an
exemption from registration under the Securities Act and an opinion
of counsel has been delivered to the Company with respect to such
transfer.

{Name of Holder}

	 	 	 	 	 	 	 
	 

	 	Dated:	 	 	 	 
	 

	 	 	 	 

	 	 

 

			
	*	 	To be dated the date of surrender

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