Document:

exv10w1

 

Exhibit 10.1

SECURITIES PURCHASE AGREEMENT

THIS SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of March 2, 2007, by and among Iomai
Corporation, a Delaware corporation with headquarters located at 20 Firstfield Road, Suite 250,
Gaithersburg, Maryland 20878 (the “Company”), and the investors listed on the Schedule of Investors
attached hereto as Exhibit A (individually, an “Investor” and collectively, the “Investors”).

BACKGROUND

     A. The Company and each Investor are executing and delivering this Agreement in reliance upon
the exemption from registration afforded by Section 4(2) of the Securities Act of 1933, as amended
(the “Securities Act”), and Rule 506 of Regulation D (“Regulation D”) as promulgated by the United
States Securities and Exchange Commission (the “SEC”) under the Securities Act.

     B. Each Investor, severally and not jointly, wishes to purchase, and the Company wishes to
sell, upon the terms and conditions stated in this Agreement, the aggregate number of units (the
“Units”) set forth opposite such Investor’s name on Exhibit A hereto, each such Unit
consisting of (i) one share (a “Common Share,” collectively, the “Common Shares”) of the Common
Stock, par value $.01 per share, of the Company (the “Common Stock”), (ii) one warrant (a
“Five-Year Warrant,” collectively, the “Five-Year Warrants”) to purchase 0.35 shares of Common
Stock, in substantially the form attached hereto as Exhibit G-1, and (iii) one warrant (a
“Four-Month Warrant,” collectively, the “Four-Month Warrants”), to purchase 0.35 shares of Common
Stock, in substantially the form attached hereto as Exhibit G-2, for a purchase price of
$5.0675 per Unit (the “Purchase Price”). The Five-Year Warrants and Four-Month Warrants are
collectively referred to herein as the “Warrants,” and shares of Common Stock issuable upon
exercise of or otherwise pursuant to the Warrants are referred to herein as the “Warrant Shares.”

     C. The Units, the Common Shares, the Warrants and the Warrant Shares issued pursuant to this
Agreement are collectively referred to herein as the “Securities.”

     NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for
other good and valuable consideration the receipt and adequacy of which are hereby acknowledged,
the Company and the Investors agree as follows:

ARTICLE I

DEFINITIONS

     1.1 Definitions. In addition to the terms defined elsewhere in this Agreement, the
following terms have the meanings indicated:

     “Affiliate” means any Person that, directly or indirectly through one or more intermediaries,
controls or is controlled by or is under common control with a Person, as such terms are used in
and construed under Rule 144 under the Securities Act.

 

 

     “Agent” has the meaning set forth in Section 3.1(l).

     “Agreement” has the meaning set forth in the Preamble.

     “Best Efforts” means the efforts that a prudent person desirous of achieving a result would
use in similar circumstances to ensure that such result is achieved as expeditiously as practical;
provided, however, that an obligation to use Best Efforts under this Agreement does not require the
Company to dispose of or make any change to its business, expend any material funds or incur any
other material burden.

     “Business Day” means any day other than Saturday, Sunday or other day on which commercial
banks in The City of New York are authorized or required by law to remain closed.

     “Closing” means the closing of the purchase and sale of the Securities pursuant to Section
2.1.

     “Closing Date” means the date and time of the Closing and shall be on such date and time as is
mutually agreed to by the Company and each Investor.

     “Closing Price” means, for any date, the closing price per share of the Common Stock for such
date (or the nearest preceding date) on the primary Eligible Market or exchange or quotation system
on which the Common Stock is then listed or quoted.

     “Company” has the meaning set forth in the Preamble.

     “Company Counsel” means Ropes & Gray, LLP, counsel to the Company.

     “Common Shares” means an aggregate of 6,291,828 shares of Common Stock, which are being issued
and sold by the Company to the Investors at the Closing.

     “Common Stock” means the common stock of the Company, par value $0.01 per share.

     “Contingent Obligation” has the meaning set forth in Section 3.1(aa).

     “Disclosure Materials” has the meaning set forth in Section 3.1(g).

     “Effective Date” means the date that the Registration Statement is first declared effective by
the SEC.

     “Effectiveness Period” has the meaning set forth in Section 6.1(b).

     “8-K Filing” has the meaning set forth in Section 4.5.

     “Eligible Market” means any of the New York Stock Exchange, the American Stock Exchange, The
Nasdaq Global Market, The Nasdaq Global Select Market or The Nasdaq Capital Market.

     “Environmental Laws” has the meaning set forth in Section 3.1(dd).

 

 

     “Event” has the meaning set forth in Section 6.1(d).

     “Event Payments” has the meaning set forth in Section 6.1(d).

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

     “Excluded Events” has the meaning set forth in Section 6.1(d)(ii).

     “Excluded Investors” means Cowen and Company, LLC and its Affiliates.

     “Filing Date” means thirty (30) days after the Closing Date.

     “Five-Year Warrants” has the meaning set forth in the Preamble.

     “Four-Month Warrants” has the meaning set forth in the Preamble.

     “GAAP” has the meaning set forth in Section 3.1(g).

     “Hazardous Materials” has the meaning set forth in Section 3.1(dd).

     “Indebtedness” has the meaning set forth in Section 3.1(aa).

     “Indemnified Party” has the meaning set forth in Section 6.4(c).

     “Indemnifying Party” has the meaning set forth in Section 6.4(c).

     “Insolvent” has the meaning set forth in Section 3.1(h).

     “Intellectual Property Rights” has the meaning set forth in Section 3.1(t).

     “Investor” has the meaning set forth in the Preamble. 

     “Lien” means any lien, charge, claim, security interest, encumbrance, right of first refusal
or other restriction.

     “Losses” means any and all losses, claims, damages, liabilities, settlement costs and
expenses, including, without limitation and reasonable attorneys’ fees.

     “Material Adverse Effect” means (i) a material adverse effect on the results of operations,
prospects, assets, business or financial condition of the Company and the Subsidiaries, taken as a
whole on a consolidated basis, or (ii) materially and adversely impair the Company’s ability to
perform its obligations under any of the Transaction Documents, provided, that none of the
following alone shall be deemed, in and of itself, to constitute a Material Adverse Effect: (i) a
change in the market price or trading volume of the Common Stock or (ii) changes in general
economic conditions or changes affecting the industry in which the Company operates generally (as
opposed to Company-specific changes) so long as such changes do not have a materially
disproportionate effect on the Company and its Subsidiaries taken as a whole.

 

 

     “Material Permits” has the meaning set forth in Section 3.1(v).

     “Person” means any individual or corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company, or joint stock company.

     “Proceeding” means an action, claim, suit, investigation or proceeding (including, without
limitation, or a partial proceeding, such as a deposition), whether commenced or threatened in
writing.

     “Prospectus” means the prospectus included in the Registration Statement (including, without
limitation, a prospectus that includes any information previously omitted from a prospectus filed
as part of an effective registration statement in reliance upon Rule 430A promulgated under the
Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms
of the offering of any portion of the Registrable Securities covered by the Registration Statement,
and all other amendments and supplements to the Prospectus including post-effective amendments, and
all material incorporated by reference or deemed to be incorporated by reference in such
Prospectus.

     “Purchase Price” has the meaning set forth in the Preamble.

     “Registrable Securities” means the Common Shares and the Warrant Shares issued or issuable
pursuant to the Transaction Documents, together with any securities issued or issuable upon any
stock split, dividend or other distribution, recapitalization or similar event with respect to the
foregoing.

     “Registration Statement” means each registration statement required to be filed under Article
VI, including (in each case) the Prospectus, amendments and supplements to such registration
statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and
all material incorporated by reference or deemed to be incorporated by reference in such
registration statement.

     “Regulation D” has the meaning set forth in the Preamble.

     “Related Person” has the meaning set forth in Section 4.6.

     “Required Effectiveness Date” means the date which is the earliest of (i) if the Registration
Statement does not become subject to review by the SEC, (a) ninety (90) days after the Closing Date
or (b) five (5) Trading Days after the Company receives notification from the SEC that the
Registration Statement will not become subject to review and the Company fails to request to
accelerate the effectiveness of the Registration Statement, or (ii) if the Registration Statement
becomes subject to review by the SEC, one hundred and twenty (120) days after the Closing Date.

     “Rule 144,” “Rule 144(k),” “Rule 415,” and “Rule 424” means Rule 144, Rule 144(k), Rule 415
and Rule 424, respectively, promulgated by the SEC pursuant to the Securities Act, as such Rules
may be amended from time to time, or any similar rule or regulation hereafter adopted by the SEC
having substantially the same effect as such Rule.

 

 

     “SEC” has the meaning set forth in the Preamble.

     “SEC Reports” has the meaning set forth in Section 3.1(g).

     “Securities” has the meaning set forth in the Preamble.

     “Securities Act” has the meaning set forth in the Preamble.

     “Shares” means shares of the Company’s Common Stock.

     “Short Sales” has the meaning set forth in Section 3.2(h).

     “Subsidiary” means any direct or indirect subsidiary of the Company.

     “Trading Day” means (a) any day on which the Common Stock is listed or quoted and traded on
its primary Trading Market, (b) if the Common Stock is not then listed or quoted and traded on any
Eligible Market, then a day on which trading occurs on the The Nasdaq Global Market (or any
successor thereto), or (c) if trading ceases to occur on the The Nasdaq Global Market (or any
successor thereto), any Business Day.

     “Trading Market” means The Nasdaq Global Market or any other Eligible Market, or any national
securities exchange, market or trading or quotation facility on which the Common Stock is then
listed or quoted.

     “Transaction Documents” means this Agreement, the schedules and exhibits attached hereto, the
Warrants and the Transfer Agent Instructions.

     “Transfer Agent” means American Stock Transfer & Trust Company, or any successor transfer
agent for the Company.

     “Transfer Agent Instructions” means, with respect to the Company, the Irrevocable Transfer
Agent Instructions, in the form of Exhibit E, executed by the Company and delivered to and
acknowledged in writing by the Transfer Agent.

     “Warrants” has the meaning set forth in the Preamble.

     “Warrant Shares” has the meaning set forth in the Preamble.

ARTICLE II

PURCHASE AND SALE

     2.1 Closing. Subject to the terms and conditions set forth in this Agreement, at the
Closing the Company shall issue and sell to each Investor, and each Investor shall, severally and
not jointly, purchase from the Company, such number of Units for the price set forth opposite such
Investor’s name on Exhibit A hereto under the heading “Purchase Price”. The date and time
of the Closing shall be 11:00 a.m., New York City Time, on the Closing Date. The Closing shall
take place at the offices of the Company’s Counsel.

 

 

     2.2 Closing Deliveries.

     (a) At the Closing, the Company shall deliver or cause to be delivered to each Investor
the following:

          (i) one or more stock certificates (or copies thereof provided by the Transfer Agent or a copy
of an irrevocable instruction letter from the Company to the Transfer Agent to issue such stock
certificates), free and clear of all restrictive and other legends (except as expressly provided in
Section 4.1(b) hereof), evidencing such number of Common Shares set forth opposite such
Investor’s name on Exhibit A hereto under the heading “Common Shares,” registered in the
name of such Investor;

          (ii) a Five-Year Warrant, issued in the name of such Investor, pursuant to which such Investor
shall have the right to acquire such number of Warrant Shares set forth opposite such Investor’s
name on Exhibit A hereto under the heading “Five-Year Warrant Shares”;

          (iii) a Four-Month Warrant, issued in the name of such Investor, pursuant to which such
Investor shall have the right to acquire such number of Warrant Shares set forth opposite such
Investor’s name on Exhibit A hereto under the heading “Four-Month Warrant Shares”;

          (iv) a legal opinion of Company Counsel, in the form of Exhibit C, executed by such
counsel and delivered to the Investors;

          (v) duly executed Transfer Agent Instructions acknowledged by the Transfer Agent; and

          (vi) evidence of filing with each applicable Trading Market of an additional shares listing
application covering all of the Registrable Securities.

     (b) At the Closing, each Investor shall deliver or cause to be delivered to the Company
the purchase price set forth opposite such Investor’s name on Exhibit A hereto under
the heading “Purchase Price” in United States dollars and in immediately available funds, by
wire transfer to an account designated in writing to such Investor by the Company for such
purpose.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

     3.1 Representations and Warranties of the Company. The Company hereby represents and
warrants to the Investors on and as of the date hereof as follows (which representations and
warranties shall be deemed to apply, where appropriate, to each Subsidiary of the Company), except
as disclosed in the SEC Reports:

     (a) Subsidiaries. The Company has no Subsidiaries other than those listed in
Schedule 3.1(a) hereto. Except as disclosed in Schedule 3.1(a) hereto, the
Company owns, directly or indirectly, all of the capital stock or comparable equity interests
of each Subsidiary free and clear of any Lien and all the issued and outstanding shares of
capital stock or

 

 

comparable equity interest of each Subsidiary are validly issued and are fully paid,
non-assessable and free of preemptive and similar rights.

     (b) Organization and Qualification. Each of the Company and the Subsidiaries is
an entity duly organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or organization (as applicable), with the requisite legal
authority to own and use its properties and assets and to carry on its business as currently
conducted. Neither the Company nor any Subsidiary is in violation of any of the provisions of
its respective certificate or articles of incorporation, bylaws or other organizational or
charter documents. Each of the Company and the Subsidiaries is duly qualified to do business
and is in good standing as a foreign corporation or other entity in each jurisdiction in which
the nature of the business conducted or property owned by it makes such qualification
necessary, except where the failure to be so qualified or in good standing, as the case may
be, would not, individually or in the aggregate, reasonably be expected to result in a
Material Adverse Effect.

     (c) Authorization; Enforcement. The Company has the requisite corporate
authority to enter into and to consummate the transactions contemplated by each of the
Transaction Documents to which it is a party and otherwise to carry out its obligations
hereunder and thereunder. The execution and delivery of each of the Transaction Documents to
which it is a party by the Company and the consummation by it of the transactions contemplated
hereby and thereby have been duly authorized by all necessary corporate action on the part of
the Company and no further consent or action is required by the Company, its Board of
Directors or its stockholders. Each of the Transaction Documents to which it is a party has
been (or upon delivery will be) duly executed by the Company and is, or when delivered in
accordance with the terms hereof, will constitute, the valid and binding obligation of the
Company enforceable against the Company in accordance with its terms, except as may be limited
by (i) applicable bankruptcy, insolvency, reorganization or other laws of general application
relating to or affecting the enforcement of creditors rights generally, and (ii) the effect of
rules of law governing the availability of specific performance and other equitable remedies.

     (d) No Conflicts. The execution, delivery and performance of the Transaction
Documents to which it is a party by the Company and the consummation by the Company of the
transactions contemplated hereby and thereby do not, and will not, (i) conflict with or
violate any provision of the Company’s or any Subsidiary’s certificate or articles of
incorporation, bylaws or other organizational or charter documents, (ii) conflict with, or
constitute a default (or an event that with notice or lapse of time or both would become a
default) under, or give to others any rights of termination, amendment, acceleration or
cancellation (with or without notice, lapse of time or both) of, any agreement, credit
facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or
other understanding to which the Company or any Subsidiary is a party or by which any property
or asset of the Company or any Subsidiary is bound, or affected, except to the extent that
such conflict, default, termination, amendment, acceleration or cancellation right would not
reasonably be expected to have a Material Adverse Effect, or (iii) result in a violation of
any law, rule, regulation, order, judgment, injunction, decree or other restriction of any
court or governmental authority to which the Company or a Subsidiary is subject (including,
assuming

 

 

the accuracy of the representations and warranties of the Investors set forth in Section
3.2 hereof, federal and state securities laws and regulations and the rules and regulations of
any self-regulatory organization to which the Company or its securities are subject, including
all applicable Trading Markets), or by which any property or asset of the Company or a
Subsidiary is bound or affected, except to the extent that such violation would not reasonably
be expected to have a Material Adverse Effect.

     (e) The Securities. The Securities are duly authorized and, when issued and paid
for in accordance with the Transaction Documents, will be duly and validly issued, fully paid
and nonassessable, free and clear of all Liens and will not be subject to preemptive or
similar rights of stockholders (other than those imposed by the Investors). The Company has
reserved from its duly authorized capital stock the maximum number of shares of Common Stock
issuable upon exercise of the Warrants. Assuming the accuracy of Section 3.2 of this
Agreement, the offer, issuance and sale of the Shares, the Warrants and the Warrant Shares to
the Investors pursuant to the Agreement, and in the case of the Warrant Shares, pursuant to
the Warrants, are exempt from the registration requirements of the Securities Act.

     (f) Capitalization. The aggregate number of shares and type of all authorized,
issued and outstanding classes of capital stock, options and other securities of the Company
(whether or not presently convertible into or exercisable or exchangeable for shares of
capital stock of the Company) is set forth in
Schedule 3.1(f) hereto. All outstanding shares of capital stock are duly authorized, validly issued, fully paid and nonassessable and
have been issued in compliance in all material respects with all applicable securities laws.
Except as disclosed in Schedule 3.1(f) hereto, the Company did not have outstanding at
February 26, 2007 any other options, warrants, scrip rights to subscribe to, calls or
commitments of any character whatsoever relating to, or securities, rights or obligations
convertible into or exercisable or exchangeable for, or entered into any agreement giving any
Person any right to subscribe for or acquire, any shares of Common Stock, or securities or
rights convertible or exchangeable into shares of Common Stock. Except as set forth on
Schedule 3.1(f) hereto, and except for customary adjustments as a result of stock
dividends, stock splits, combinations of shares, reorganizations, recapitalizations,
reclassifications or other similar events, there are no anti-dilution or price adjustment
provisions contained in any security issued by the Company (or in any agreement providing
rights to security holders) and the issuance and sale of the Securities will not obligate the
Company to issue shares of Common Stock or other securities to any Person (other than the
Investors) and will not result in a right of any holder of securities to adjust the exercise,
conversion, exchange or reset price under such securities. To the knowledge of the Company,
except as disclosed in the SEC Reports and any Schedules filed with the SEC pursuant to Rule
13d-1 of the Exchange Act by reporting persons or in Schedule 3.1(f) hereto, no Person
or group of related Persons beneficially owns (as determined pursuant to Rule 13d-3 under the
Exchange Act), or has the right to acquire, by agreement with or by obligation binding upon
the Company, beneficial ownership of in excess of five percent (5%) of the outstanding Common
Stock.

     (g) SEC Reports; Financial Statements. Except as set forth on Schedule
3.1(g), the Company has filed all reports required to be filed by it under Exchange Act
Sections 13(a) or 15(d), for the 12 months preceding the date hereof on a
timely basis or has received a valid

 

 

extension of such time of filing and has filed any such SEC Reports prior to the
expiration of any such extension and has filed all reports required to be filed by it under
Exchange Act Sections 13(a) or 15(d), since February 1, 2006. Such reports required to be
filed by the Company under the Exchange Act, including pursuant to Section 13(a) or 15(d)
thereof, together with any materials filed or furnished by the Company under the Exchange Act,
whether or not any such reports were required being collectively referred to herein as the
“SEC Reports” and, together with this Agreement and the Schedules to this Agreement, the
“Disclosure Materials”. As of their respective dates, the SEC Reports filed by the Company
complied in all material respects with the requirements of the Exchange Act and the rules and
regulations of the SEC promulgated thereunder, and none of the SEC Reports, when filed by the
Company, contained any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading. The financial
statements of the Company included in the SEC Reports comply as to form in all material
respects with applicable accounting requirements and the rules and regulations of the SEC with
respect thereto as in effect at the time of filing. Such financial statements have been
prepared in accordance with United States generally accepted accounting principles applied on
a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified
in such financial statements, the notes thereto and except that unaudited financial statements
may not contain all footnotes required by GAAP or may be condensed or summary statements, and
fairly present in all material respects the consolidated financial position of the Company and
its consolidated Subsidiaries as of and for the dates thereof and the results of operations
and cash flows for the periods then ended, subject, in the case of unaudited statements, to
normal, year-end audit adjustments. All material agreements to which the Company or any
Subsidiary is a party or to which the property or assets of the Company or any Subsidiary are
subject are included as part of or identified in the SEC Reports, to the extent such
agreements are required to be included or identified pursuant to the rules and regulations of
the SEC.

     (h) Since the date of the latest audited financial statements included within the SEC
Reports, except as disclosed in the SEC Reports or in Schedule 3.1(h) hereto, (i)
there has been no event, occurrence or development that, individually or in the aggregate, has
had or that would reasonably be expected to result in a Material Adverse Effect, (ii) the
Company has not incurred any liabilities other than (A) trade payables, accrued expenses and
other liabilities incurred in the ordinary course of business consistent with past practice
(B) liabilities not required to be reflected in the Company’s financial statements pursuant to
GAAP or required to be disclosed in filings made with the SEC and (C) other liabilities that
would not, individually or in the aggregate, have a Material Adverse Effect, (iii) the Company
has not altered its method of accounting or the changed its auditors, except as disclosed in
its SEC Reports, (iv) the Company has not declared or made any dividend or distribution of
cash or other property to its stockholders, in their capacities as such, or purchased,
redeemed or made any agreements to purchase or redeem any shares of its capital stock (except
for repurchases by the Company of shares of capital stock held by employees, officers,
directors, or consultants pursuant to an option of the Company to repurchase such shares upon
the termination of employment or services), and (v) the Company has not issued any equity
securities to any officer, director or Affiliate, except pursuant to existing Company
stock-based plans. The Company has not taken any steps to seek protection pursuant to any
bankruptcy law nor does

 

 

the Company believe that
its creditors intend to initiate involuntary bankruptcy proceedings or any actual
knowledge of any fact which would reasonably lead a creditor to do so. The Company is not as
of the date hereof, and after giving effect to the transactions contemplated hereby to occur
at the applicable Closing, will not be Insolvent (as defined below). For purposes of this
Section 3.1(h), “Insolvent” means (i) the present fair saleable value of the Company’s assets
is less than the amount required to pay the Company’s total Indebtedness (as defined in
Section 3.1(aa)), (ii) the Company is unable to pay its debts and liabilities, subordinated,
contingent or otherwise, as such debts and liabilities become absolute and matured or (iii)
the Company has unreasonably small capital with which to conduct the business in which it is
engaged as such business is now conducted and is proposed to be conducted.

     (i) Absence of Litigation. Except as disclosed in the SEC Reports, there is no
Proceeding, or, to the Company’s knowledge, inquiry or investigation, before or by any court,
public board, government agency, self-regulatory organization or body pending or, to the
knowledge of the Company, threatened against or affecting the Company or any of its
Subsidiaries that would, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.

     (j) Compliance. Except as described in Schedule 3.1(j), neither the
Company nor any Subsidiary, except in each case as would not, individually or in the
aggregate, reasonably be expected to have or result in a Material Adverse Effect, (i) is in
default under or in violation of (and no event has occurred that has not been waived that,
with notice or lapse of time or both, would result in a default by the Company or any
Subsidiary under), nor has the Company or any Subsidiary received written notice of a claim
that it is in default under or that it is in violation of, any indenture, loan or credit
agreement or any other agreement or instrument to which it is a party or by which it or any of
its properties is bound (whether or not such default or violation has been waived), (ii) is in
violation of any order of any court, arbitrator or governmental body, or (iii) is or has been
in violation of any statute, rule or regulation of any governmental authority.

     (k) Title to Assets. The Company and the Subsidiaries have title to all real
property owned by them that is material to the business of the Company and the Subsidiaries
and title in all personal property owned by them that is material to the business of the
Company and the Subsidiaries, in each case free and clear of all Liens, except for Liens that
do not, individually or in the aggregate, have or result in a Material Adverse Effect. Any
real property and facilities held under lease by the Company and the Subsidiaries are held by
them under valid, subsisting and enforceable leases of which the Company and the Subsidiaries
are in material compliance.

     (l) No General Solicitation; Placement Agent’s Fees. Neither the Company, nor
any of its Affiliates, nor any Person acting on its or their behalf, has engaged in any form
of general solicitation or general advertising (within the meaning of Regulation D) in
connection with the offer or sale of the Securities. The Company shall be responsible for the
payment of any placement agent’s fees, financial advisory fees, or brokers’ commission (other
than for persons engaged by any Investor or its investment advisor) relating to or arising out
of the

 

 

issuance of the Securities pursuant to this Agreement. The Company shall pay, and hold
each Investor harmless against, any liability, loss or expense (including, without limitation,
reasonable attorney’s fees and out-of-pocket expenses) arising in connection with any such
claim for fees arising out of the issuance of the Securities pursuant to this Agreement. The
Company acknowledges that it has engaged Cowen and Company, LLC as its exclusive placement
agent (the “Agent”) in connection with the sale of the Securities.

     (m) Private Placement. Neither the Company nor any of its Affiliates nor, any
Person acting on the Company’s behalf has, directly or indirectly, at any time within the past
six months, made any offer or sale of any security or solicitation of any offer to buy any
security under circumstances that would (i) eliminate the availability of the exemption from
registration under Regulation D in connection with the offer and sale by the Company of the
Securities as contemplated hereby or (ii) cause the offering of the Securities pursuant to the
Transaction Documents to be integrated with prior offerings by the Company for purposes of any
applicable law, regulation or stockholder approval provisions, including, without limitation,
under the rules and regulations of any Trading Market. The Company is not required to be
registered as, and is not an Affiliate of, an “investment company” within the meaning of the
Investment Company Act of 1940, as amended. The Company is not required to be registered as,
a United States real property holding corporation within the meaning of the Foreign Investment
in Real Property Tax Act of 1980.

     (n) Form S-3 Eligibility. The Company is eligible to register the Common Shares
and the Warrant Shares for resale by the Investors using Form S-3 promulgated under the
Securities Act.

     (o) Listing and Maintenance Requirements. The Company has not, in the twelve
(12) months preceding the date hereof, received notice (written or oral) from any Trading
Market on which the Common Stock is or has been listed or quoted to the effect that the
Company is not in compliance with the listing or maintenance requirements of such Trading
Market. The Company is in compliance with all such listing and maintenance requirements.

     (p) Registration Rights. Except as described in Schedule 3.1(p), the
Company has not granted or agreed to grant to any Person any rights (including “piggy-back”
registration rights) to have any securities of the Company registered with the SEC or any
other governmental authority that have not been satisfied or waived.

     (q) Application of Takeover Protections. Except as described in Schedule
3.1(q), there is no control share acquisition, business combination, poison pill
(including any distribution under a rights agreement) or other similar anti-takeover provision
under the Company’s charter documents or the laws of its state of incorporation that is or
could become applicable to any of the Investors as a result of the Investors and the Company
fulfilling their obligations or exercising their rights under the Transaction Documents,
including, without limitation, as a result of the Company’s issuance of the Securities and the
Investors’ ownership of the Securities.

 

 

     (r) Disclosure. The Company confirms that neither it nor any officers, directors
or Affiliates, has provided any of the Investors (other than Excluded Investors) or their
agents or counsel with any information that constitutes material, nonpublic information (other
than the existence and terms of the issuance of Securities, as contemplated by this
Agreement). The Company understands and confirms that each of the Investors will rely on the
foregoing representations in effecting transactions in securities of the Company (other than
Excluded Investors). All disclosure provided by the Company to the Investors regarding the
Company, its business and the transactions contemplated hereby, including the Schedules to
this Agreement, furnished by or on the behalf of the Company are true and correct in all
material respects and do not contain any untrue statement of a material fact or omit to state
any material fact necessary in order to make the statements made therein, in the light of the
circumstances under which they were made, not misleading. To the Company’s knowledge, except
for the transactions contemplated by this Agreement, no event or circumstance has occurred or
information exists with respect to the Company or any of its Subsidiaries or its or their
business, properties, operations or financial condition, which, under applicable law, rule or
regulation, required public disclosure or announcement by the Company prior to the date hereof
but which has not been so publicly announced or disclosed. The Company acknowledges and
agrees that no Investor (other than Excluded Investors) makes or has made any representations
or warranties with respect to the transactions contemplated hereby other than those set forth
in the Transaction Documents.

     (s) Acknowledgment Regarding Investors’ Purchase of Securities. Based upon the
assumption that the transactions contemplated by this Agreement are consummated in all
material respects in conformity with the Transaction Documents, the Company acknowledges and
agrees that each of the Investors (other than Excluded Investors) is acting solely in the
capacity of an arm’s length purchaser with respect to the Transaction Documents and the
transactions contemplated hereby and thereby. The Company further acknowledges that no
Investor (other than Excluded Investors) is acting as a financial advisor or fiduciary of the
Company (or in any similar capacity) with respect to this Agreement and the transactions
contemplated hereby and any advice given by any Investor (other than Excluded Investors) or
any of their respective representatives or agents in connection with the Transaction Documents
and the transactions contemplated hereby and thereby is merely incidental to the Investors’
purchase of the Securities. The Company further represents to each Investor that the
Company’s decision to enter into this Agreement has been based solely on the independent
evaluation of the transactions contemplated hereby by the Company and its representatives.

     (t) Patents and Trademarks. To the Company’s knowledge, the Company and its
Subsidiaries own, or possess adequate rights or licenses to use, all trademarks, trade names,
service marks, service mark registrations, service names, patents, patent rights, copyrights,
inventions, licenses, approvals, governmental authorizations, trade secrets and other
intellectual property rights (“Intellectual Property Rights”) necessary to conduct their
respective businesses now conducted. Except as disclosed in the SEC Reports, none of the
Company’s Intellectual Property Rights have expired or terminated, or are expected to expire
or terminate, within three years from the date of this Agreement. The Company does not have
any knowledge of any infringement by the Company or its Subsidiaries of Intellectual Property
Rights of others. Except as disclosed in the SEC Reports, there is no claim, action or

 

 

proceeding being made or brought, or to the knowledge of the Company, being threatened,
against the Company or its Subsidiaries regarding its Intellectual Property Rights.

     (u) Insurance. The Company and the Subsidiaries are insured by insurers of
recognized financial responsibility against such losses and risks and in such amounts as, in
the judgement of the Company’s management, are prudent and customary in the businesses and
location in which the Company and the Subsidiaries are engaged.

     (v) Regulatory Permits. The Company and the Subsidiaries possess all
certificates, authorizations and permits issued by the appropriate federal, state, local or
foreign regulatory authorities necessary to conduct their respective businesses as described
in the SEC Reports (“Material Permits”), except where the failure to possess such permits is
not, individually or in the aggregate, reasonably be expected to result in a Material Adverse
Effect, and neither the Company nor any Subsidiary has received any written notice of
proceedings relating to the revocation or modification of any Material Permit.

     (w) Transactions With Affiliates and Employees. Except as set forth or
incorporated by reference in the SEC Reports, none of the officers, directors or employees of
the Company is presently a party to any transaction that would be required to be reported
pursuant to Item 404 of Regulation S-K promulgated under the Securities Act.

     (x) Internal Accounting Controls. The Company and the Subsidiaries maintain a
system of internal accounting controls sufficient to provide reasonable assurance that (i)
transactions are executed in accordance with management’s general or specific authorizations,
(ii) transactions are recorded as necessary to permit preparation of financial statements in
conformity with generally accepted accounting principles and to maintain asset accountability,
(iii) access to assets is permitted only in accordance with management’s general or specific
authorization, and (iv) the recorded accountability for assets is compared with the existing
assets at reasonable intervals and appropriate action is taken with respect to any
differences.

     (y) Sarbanes-Oxley Act. The Company is in compliance in all material respects
with applicable requirements of the Sarbanes-Oxley Act of 2002 and applicable rules and
regulations promulgated by the SEC thereunder, except where such noncompliance would not have,
individually or in the aggregate, a Material Adverse Effect.

     (z) Foreign Corrupt Practices. Neither the Company nor any of its Subsidiaries
nor, to the knowledge of the Company, any director, officer, agent, employee or other Person
acting on behalf of the Company or any of its Subsidiaries has, in the course of its actions
for, or on behalf of, the Company (i) used any corporate funds for any unlawful contribution,
gift, entertainment or other unlawful expenses relating to political activity, (ii) made any
direct or indirect unlawful payment to any foreign or domestic government official or employee
from corporate funds, (iii) violated or is in violation of any provision of the U.S. Foreign
Corrupt Practices Act of 1977, as amended, or (iv) made any unlawful bribe, rebate, payoff,
influence payment, kickback or other unlawful payment to any foreign or domestic government
official or employee.

 

 

     (aa) Indebtedness. Except as disclosed in Schedule 3.1(aa), neither the Company
nor any of its Subsidiaries (i) has any outstanding Indebtedness (as defined below), (ii) is
in violation of any term of or in default under any contract, agreement or instrument relating
to any Indebtedness, except where such violations and defaults would not result, individually
or in the aggregate, in a Material Adverse Effect, or (iii) is a party to any contract,
agreement or instrument relating to any Indebtedness, the performance of which, in the
judgment of the Company’s officers, is reasonably expected to have a Material Adverse Effect.
Schedule 3.1(aa) provides a detailed description of the material terms of any such outstanding
Indebtedness not disclosed in or as an exhibit to an SEC Report. For purposes of this
Agreement: (x) “Indebtedness” of any Person means, without duplication (A) all indebtedness
for borrowed money, (B) all obligations issued, undertaken or assumed as the deferred purchase
price of property or services (other than trade payables entered into in the ordinary course
of business), (C) all reimbursement or payment obligations with respect to letters of credit,
surety bonds and other similar instruments, (D) all obligations evidenced by notes, bonds,
debentures or similar instruments, including obligations so evidenced incurred in connection
with the acquisition of property, assets or businesses, (E) all indebtedness created or
arising under any conditional sale or other title retention agreement, or incurred as
financing, in either case with respect to any property or assets acquired with the proceeds of
such indebtedness (even though the rights and remedies of the seller or bank under such
agreement in the event of default are limited to repossession or sale of such property), (F)
all monetary obligations under any leasing or similar arrangement which, in connection with
generally accepted accounting principles, consistently applied for the periods covered
thereby, is classified as a capital lease, (G) all indebtedness referred to in clauses (A)
through (F) above secured by (or for which the holder of such Indebtedness has an existing
right, contingent or otherwise, to be secured by) any mortgage, lien, pledge, charge, security
interest or other encumbrance upon or in any property or assets (including accounts and
contract rights) owned by any Person, even though the Person which owns such assets or
property has not assumed or become liable for the payment of such indebtedness, and (H) all
Contingent Obligations in respect of indebtedness or obligations of others of the kinds
referred to in clauses (A) through (G) above, provided that for the indebtedness referred to
in clauses (A) through (H), the indebtedness is in each case in excess of $5 million; (y)
“Contingent Obligation” means, as to any Person, any direct or indirect liability, contingent
or otherwise, of that Person with respect to any indebtedness, lease, dividend or other
obligation of another Person if the primary purpose or intent of the Person incurring such
liability, or the primary effect thereof, is to provide assurance to the obligee of such
liability that such liability will be paid or discharged, or that any agreements relating
thereto will be complied with, or that the holders of such liability will be protected (in
whole or in part) against loss with respect thereto; and (z) “Person” means an individual, a
limited liability company, a partnership, a joint venture, a corporation, a trust, an
unincorporated organization and a government or any department or agency thereof.

     (bb) Employee Relations. Neither the Company nor any of its Subsidiaries is a
party to any collective bargaining agreement or employs any member of a union. The Company
believes that its relations with its employees are as disclosed in the SEC Reports. The
Company is not aware that any executive officer intends to terminate their employment

 

 

with the Company, nor does the Company have a present intention to terminate the
employment of any executive officer.

     (cc) Labor Matters. The Company and its Subsidiaries are in compliance in all
material respects with all federal, state, local and foreign laws and regulations respecting
labor, employment and employment practices and benefits, terms and conditions of employment
and wages and hours, except where failure to be in compliance would not, either individually
or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

     (dd) Environmental Laws. The Company and its Subsidiaries (i) are in compliance
in all material respects with any and all Environmental Laws (as hereinafter defined), (ii)
have received all permits, licenses or other approvals required of them under applicable
Environmental Laws to conduct their respective businesses and (iii) are in compliance in all
material respects with all terms and conditions of any such permit, license or approval where,
in each of the foregoing clauses (i), (ii) and (iii), the failure to so comply would be
reasonably expected to have, individually or in the aggregate, a Material Adverse Effect. The
term “Environmental Laws” means all federal, state, local or foreign laws relating to
pollution or protection of human health or the environment (including, without limitation,
ambient air, surface water, groundwater, land surface or subsurface strata), including,
without limitation, laws relating to emissions, discharges, releases or threatened releases of
chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes (collectively,
“Hazardous Materials”) into the environment, or otherwise relating to the manufacture,
processing, distribution, use, treatment, storage, disposal, transport or handling of
Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters,
injunctions, judgments, licenses, notices or notice letters, orders, permits, plans or
regulations issued, entered, promulgated or approved thereunder.

     (ee) Subsidiary Rights. Except as set forth in Schedule 3.1(ee), the Company or
one of its Subsidiaries has the unrestricted right to vote, and (subject to limitations
imposed by applicable law) to receive dividends and distributions on, all capital securities
of its Subsidiaries as owned by the Company or such Subsidiary.

     (ff) Tax Status. The Company and each of its Subsidiaries (i) has made or filed
all foreign, federal and state income and all other tax returns, reports and declarations
required by any jurisdiction to which it is subject, to the extent the final deadlines for
which were on or before the date hereof, (ii) has paid all taxes and other governmental
assessments and charges that are material in amount, shown or determined to be due on such
returns, reports and declarations, except those being contested in good faith and (iii) has
set aside on its books provision reasonably adequate for the payment of all taxes for periods
subsequent to the periods to which such returns, reports or declarations apply.

     (gg) Investment Company. The Company is not now, and after the sale of the
Securities under the Transaction Documents and the application of net proceeds from the sale
of the Securities described in Section 4.6 herein will not be, an “investment company”
within the meaning of the Investment Company Act of 1940, as amended.

 

 

     3.2 Representations, Warranties and Covenants of the Investors. Each Investor hereby,
as to itself only and for no other Investor, represents, warrants and covenants to the Company as
follows:

     (a) Organization; Authority. Such Investor is an entity duly organized, validly
existing and in good standing under the laws of the jurisdiction of its organization with the
requisite corporate, partnership or other power and authority to enter into and to consummate
the transactions contemplated by the Transaction Documents and otherwise to carry out its
obligations hereunder and thereunder. The purchase by such Investor of the Securities
hereunder has been duly authorized by all necessary corporate, partnership or other action on
the part of such Investor. This Agreement has been duly executed and delivered by such
Investor and constitutes the valid and binding obligation of such Investor, enforceable
against it in accordance with its terms, except as may be limited by (i) applicable
bankruptcy, insolvency, reorganization or other laws of general application relating to or
affecting the enforcement of creditors rights generally, and (ii) the effect of rules of law
governing the availability of specific performance and other equitable remedies.

     (b) No Public Sale or Distribution. Such Investor is (i) acquiring the Common
Shares and the Warrants and (ii) upon exercise of the Warrants will acquire the Warrant Shares
issuable upon exercise thereof, in the ordinary course of business for its own account and not
with a view towards, or for resale in connection with, the public sale or distribution
thereof, except pursuant to sales registered under the Securities Act or under an exemption
from such registration and in compliance with applicable federal and state securities laws,
and such Investor does not have a present arrangement to effect any distribution of the
Securities to or through any person or entity; provided, however, that by
making the representations herein, such Investor does not agree to hold any of the Securities
for any minimum or other specific term and reserves the right to dispose of the Securities at
any time in accordance with or pursuant to a registration statement or an exemption under the
Securities Act. Each Investor has completed or caused to be completed the Registration
Statement Questionnaire attached hereto as Exhibit B-2 for use in preparation of the
Registration Statement, and the responses provided therein shall be true and correct in all
material respects as of the Closing Date and, unless such Registration Statement Questionnaire
has been otherwise amended and/or supplemented, will be true and correct as of the effective
date of the Registration Statement

     (c) Investor Status. At the time such Investor was offered the Securities, it
was, and at the date hereof it is, an “accredited investor” as defined in Rule 501(a) under
the Securities Act or a “qualified institutional buyer” as defined in Rule 144A(a) under the
Securities Act. Such Investor is not a registered broker dealer registered under Section
15(a) of the Exchange Act, or a member of the NASD, Inc. or an entity engaged in the business
of being a broker dealer. Except as otherwise disclosed in writing to the Company on
Exhibit B-2 (attached hereto) on or prior to the date of this Agreement, such Investor
is not affiliated with any broker dealer registered under Section 15(a) of the Exchange Act,
or a member of the NASD, Inc. or an entity engaged in the business of being a broker dealer.

     (d) Experience of Such Investor. Such Investor, either alone or together with
its representatives, has such knowledge, sophistication and experience in business and
financial matters so as to be capable of evaluating the merits and risks of the prospective
investment in

 

 

the Securities, and has so evaluated the merits and risks of such investment. Such
Investor understands that it must bear the economic risk of this investment in the Securities
indefinitely, and is able to bear such risk and is able to afford a complete loss of such
investment.

     (e) Access to Information. Such Investor acknowledges that it has reviewed the
Disclosure Materials and has been afforded: (i) the opportunity to ask such questions as it
has deemed necessary of, and to receive answers from, representatives of the Company
concerning the terms and conditions of the offering of the Securities and the merits and risks
of investing in the Securities; (ii) access to information (other than material non-public
information) about the Company and the Subsidiaries and their respective financial condition,
results of operations, business, properties, management and prospects sufficient to enable it
to evaluate its investment; and (iii) the opportunity to obtain such additional information
that the Company possesses or can acquire without unreasonable effort or expense that is
necessary to make an informed investment decision with respect to the investment. Neither
such inquiries nor any other investigation conducted by or on behalf of such Investor or its
representatives or counsel shall modify, amend or affect such Investor’s right to rely on the
truth, accuracy and completeness of the Disclosure Materials and the Company’s representations
and warranties contained in the Transaction Documents. Such Investor acknowledges receipt of
copies of the SEC Reports.

     (f) No Governmental Review. Such Investor understands that no United States
federal or state agency or any other government or governmental agency has passed on or made
any recommendation or endorsement of the Securities or the fairness or suitability of the
investment in the Securities nor have such authorities passed upon or endorsed the merits of
the offering of the Securities.

     (g) No Conflicts. The execution, delivery and performance by such Investor of
this Agreement and the consummation by such Investor of the transactions contemplated hereby
will not (i) result in a violation of the organizational documents of such Investor, (ii)
conflict with, or constitute a default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, indenture or instrument to which such Investor
is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or
decree (including federal and state securities laws) applicable to such Investor, except in
the case of clauses (ii) and (iii) above, for such that are not material and do not otherwise
affect the ability of such Investor to consummate the transactions contemplated hereby.

     (h) Prohibited Transactions. No Investor, directly or indirectly, and no
Person acting on behalf of or pursuant to any understanding with any Investor, has engaged
in any purchases or sales of any securities, including any derivatives, of the Company
(including, without limitation, any Short Sales involving any of the Company’s securities)
(a “Transaction”) since the time that such Investor was first contacted by the Company,
the Agent or any other Person regarding the sale of Securities as contemplated under the
Transaction Documents. Such Investor covenants that neither it nor any Person acting on
its behalf or pursuant to any understanding with such Investor will engage, directly or
indirectly, in any Transactions prior to the time the transactions contemplated by this

 

 

Agreement are publicly disclosed. “Short Sales” include, without limitation, all
“short sales” as defined in Rule 200 promulgated under Regulation SHO under the Exchange
Act and all types of direct and indirect stock pledges, forward sale contracts, options,
puts, calls, short sales, swaps, derivatives and similar arrangements (including on a
total return basis), and sales and other transactions through non-U.S. broker-dealers or
foreign regulated brokers.

     (i) Restricted Securities. The Investors understand that the Securities are
characterized as “restricted securities” under the U.S. federal securities laws inasmuch as
they are being acquired from the Company in a transaction not involving a public offering
and that under such laws and applicable regulations such securities may be resold without
registration under the Securities Act only in certain limited circumstances.

     (j) Legends. It is understood that, except as provided in Section 4.1(b) of
this Agreement, certificates evidencing such Securities may bear the legend set forth in
Section 4.1(b)

     (k)
No Legal, Tax or Investment Advice. Such Investor understands that nothing in this Agreement or any other materials presented by
or on behalf of the Company to the Investor in connection with the purchase of the Securities
constitutes legal, tax or investment advice. Such Investor has consulted such legal, tax and
investment advisors as it, in its sole discretion, has deemed necessary or appropriate in
connection with its purchase of the Securities. Such Investor understands that the Agent has acted
solely as the agent of the Company in this placement of the Securities, and that the Agent makes no
representation or warranty with regard to the merits of this transaction or as to the accuracy of
any information such Investor may have received in connection therewith. Such Investor
acknowledges that he has not relied on any information or advice furnished by or on behalf of the
Agent.

ARTICLE IV

OTHER AGREEMENTS OF THE PARTIES

     4.1 Transfer Restrictions.

     (a) The Investors covenant that the Securities will only be disposed of pursuant to an
effective registration statement under, and in compliance with the requirements of, the
Securities Act or pursuant to an available exemption from the registration requirements of the
Securities Act, and in compliance with any applicable state securities laws. In connection
with any transfer of Securities other than pursuant to an effective registration statement or
to the Company, or pursuant to Rule 144(k), the Company may require the transferor to provide
to the Company an opinion of counsel selected by the transferor, the form and substance of
which opinion shall be reasonably satisfactory to the Company, to the effect that such
transfer does not require registration under the Securities Act. Notwithstanding the
foregoing, the Company hereby consents to and agrees to register on the books of the Company
and with its Transfer Agent, without any such legal opinion, except to the extent that the
Transfer Agent requests such legal opinion, any transfer of Securities by an Investor to an
Affiliate of such Investor,
provided that the transferee certifies to the Company that it is an “accredited investor”
as

 

 

defined in Rule 501(a) under the Securities Act and provided that such Affiliate does not
request any removal of any existing legends on any certificate evidencing the Securities.

     (b) The Investors agree to the imprinting, so long as is required by this Section
4.1(b), of the following legend on any certificate evidencing any of the Securities:

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION
FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS AND, ACCORDINGLY, MAY NOT BE OFFERED
OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN COMPLIANCE WITH
APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS.

Certificates evidencing Securities shall not be required to contain such legend or any other
legend (i) while a registration statement (including the Registration Statement) covering the
resale of the Securities is effective under the Securities Act, (ii) following any sale of such
Securities pursuant to Rule 144 if the holder provides the Company with a legal opinion (and
the documents upon which the legal opinion is based) reasonable acceptance to the Company to
the effect that the Securities can be sold under Rule 144, (iii) if the holder provides the
Company with a legal opinion (and the documents upon which the legal opinion is based)
reasonably acceptable to the Company to the effect that the Securities are eligible for sale
under Rule 144(k), or (iv) if the holder provides the Company with a legal opinion (and the
documents upon which the legal opinion is based) reasonably acceptable to the Company to the
effect that the legend is not required under applicable requirements of the Securities Act
(including controlling judicial interpretations and pronouncements issued by the Staff of the
SEC). Subject to receipt of the undertaking referred to above, the Company shall use its Best
Efforts to cause its counsel to issue the legal opinion included in the Transfer Agent
Instructions to the Transfer Agent on the Effective Date. Following the Effective Date or at
such earlier time as a legend is no longer required for certain Securities, the Company will no
later than three Trading Days following the delivery by an Investor to the Company or the
Transfer Agent of (i) a legended certificate representing such Securities, and (ii) an opinion
of counsel to the extent required by Section 4.1(a), deliver or cause to be delivered
to such Investor a certificate representing such Securities that is free from the legend
referred to above. The Company may not make any notation on its records or give instructions
to the Transfer Agent that enlarge the restrictions on transfer set forth in this Section.

     If within three (3) Trading Days after the Company’s receipt of a legended certificate and
the other documents as specified in clauses (i) and (ii) of the paragraph immediately above,
the Company shall fail to issue and deliver to such Investor a certificate representing such
Securities that is free from the legend referred to above, and if on or after such third
Trading Day the Investor purchases (in an open market transaction) shares of Common Stock to deliver in

 

 

satisfaction of a sale by the Investor of shares of Common Stock that the Investor anticipated
receiving from the Company without any restrictive legend (the “Covering Shares”), then the
Company shall, within three (3) Trading Days after the Investor’s request, pay cash to the
Investor in an amount equal to the excess (if any) of the Investor’s total purchase price
(including reasonable brokerage commissions, if any) for the Covering Shares, over the product
of (A) the number of Covering Shares, times (B) the closing sale price on the date of delivery
of such certificate.

     (c) The Company will not object to and shall permit (except as prohibited by law) an
Investor to pledge or grant a security interest in some or all of the Securities in connection
with a bona fide margin agreement or other loan or financing arrangement secured by the
Securities, and if required under the terms of such agreement, loan or arrangement, the
Company will not object to and shall permit (except as prohibited by law) such Investor to
transfer pledged or secured Securities to the pledges or secured parties. Except as required
by law, such a pledge or transfer would not be subject to approval of the Company, no legal
opinion of the pledgee, secured party or pledgor shall be required in connection therewith,
and no notice shall be required of such pledge. Each Investor acknowledges that the Company
shall not be responsible for any pledges relating to, or the grant of any security interest
in, any of the Securities or for any agreement, understanding or arrangement between any
Investor and its pledgee or secured party. At the appropriate Investor’s expense, the Company
will execute and deliver such reasonable documentation as a pledgee or secured party of
Securities may reasonably request in connection with a pledge or transfer of the Securities,
including the preparation and filing of any required prospectus supplement under Rule
424(b)(3) of the Securities Act or other applicable provision of the Securities Act to
appropriately amend the list of Selling Stockholders thereunder. Provided that the Company is
in compliance with the terms of this Section 4.1(c), the Company’s indemnification obligations
pursuant to Section 6.4 shall not extend to any Proceeding or Losses arising out of or related
to this Section 4.1(c).

     4.2 Furnishing of Information. During the time the Registration Statement is required
to be effective, the Company covenants to timely file (or obtain extensions in respect thereof and
file within the applicable grace period) all reports required to be filed by the Company after the
date hereof pursuant to the Exchange Act.

     4.3 Integration. The Company shall not, and shall use its commercially reasonably
efforts to ensure that no Affiliate thereof shall, sell, offer for sale or solicit offers to buy or
otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that
would be integrated with the offer or sale of the Securities in a manner that would require the
registration under the Securities Act of the sale of the Securities to the Investors or that would
be integrated with the offer or sale of the Securities for purposes of the rules and regulations of
any Trading Market.

     4.4 Reservation of Securities. The Company shall maintain a reserve from its duly
authorized shares of Common Stock for issuance pursuant to the Transaction Documents in such amount
as may be required to fulfill its obligations to issue Shares under the Transaction Documents. In
the event that at any time the then authorized shares of Common Stock are insufficient for the
Company to satisfy its obligations to issue such Shares under the Transaction Documents, the

 

 

Company shall promptly take such actions as may be required to increase the number of
authorized shares.

     4.5 Securities Laws Disclosure; Publicity. The Company shall, on or before 8:30 a.m.,
New York time, on the first Trading Day following execution of this Agreement, issue a press
release disclosing all material terms of the transactions contemplated hereby. On the Closing
Date, the Company shall file a Current Report on Form 8-K with the SEC (the “8-K Filing”)
describing the terms of the transactions contemplated by the Transaction Documents and including as
exhibits to such Current Report on Form 8-K the Transaction Documents (including the names, and
addresses of the Investors and the amount(s) of Securities respectively purchased) and the form of
Warrants, in the form required by the Exchange Act. Thereafter, the Company shall timely file any
filings and notices required by the SEC or applicable law with respect to the transactions
contemplated hereby. Except as herein provided, the Company shall not publicly disclose the name
of any Investor, or include the name of any Investor in any press release without the prior written
consent of such Investor, unless otherwise required by law. The Company shall not, and shall cause
each of its Subsidiaries and its and each of their respective officers, directors, employees and
agents not to, provide any Investor with any material nonpublic information regarding the Company
or any of its Subsidiaries from and after the issuance of the above referenced press release
without the express written consent of such Investor.

     4.6 Use of Proceeds. The Company intends to use the net proceeds from the sale of the
Securities for working capital and general corporate purposes. The Company also may use a portion
of the net proceeds, currently intended for general corporate purposes, to acquire or invest in
technologies, products, services or businesses that complement its business, although the Company
has no present commitments with respect to these types of transactions. Pending these uses, the
Company intends to invest the net proceeds from this offering in short-term, interest-bearing,
investment-grade securities, or as otherwise pursuant to the Company’s customary investment
policies.

     4.7 No Additional Issuances and Registrations. The Company agrees not to sell, offer
or agree to sell, any shares of Common Stock or securities convertible into or exchangeable or
exercisable for Common Stock, or file or cause to be declared effective a registration statement
under the Securities Act relating to the offer and sale of any shares of Common Stock or securities
convertible into or exercisable or exchangeable for Common Stock, for a period of 30 days after the
Effective Date, except for (i) the registration of the Registrable Securities, (ii) issuances of
Common Stock upon the exercise of options or warrants disclosed as outstanding in the SEC Reports,
(iii) the issuance of equity incentives to employees, (iv) issuances of shares of Common Stock or
any securities convertible into or exercisable for Common Stock in connection with a strategic
licensing arrangement, corporate partnering transaction or similar collaboration; (v) agreements to
issue shares of Common Stock or any securities convertible into or exercisable for Common Stock,
and the issuance of shares of Common Stock, in connection with an acquisition, by merger or
consolidation with, or by purchase of all or a substantial portion of the assets of, or by any
other manner, of any business or corporation, partnership, association or other business
organization or division thereof; (vi) any registration of securities on Form S-4 or S-8 or similar
forms and (vii) any post-effective amendments to registration statements effective as of the
Effective Date.

 

 

ARTICLE V

CONDITIONS

     5.1 Conditions Precedent to the Obligations of the Investors. The obligation of each
Investor to acquire Securities at the Closing is subject to the satisfaction or waiver by such
Investor, at or before the Closing, of each of the following conditions:

          (a) Representations and Warranties. The representations and warranties of the
Company contained herein shall be true and correct in all material respects (other than those
representations and warranties that are qualified by “material” or Material Adverse Effect
qualifiers, which shall be true and correct in all respects) as of the date when made and as
of the Closing as though made on and as of such date;

          (b) Performance. The Company and each other Investor shall have performed,
satisfied and complied in all material respects with all covenants, agreements and conditions
required by the Transaction Documents to be performed, satisfied or complied with by it at or
prior to the Closing; and

          (c) Minimum and Maximum Proceeds. This Agreement shall cover a minimum of $20
million of gross proceeds and a maximum of $40 million of gross proceeds from the sale of the
Securities.

     5.2 Conditions Precedent to the Obligations of the Company. The obligation of the
Company to sell the Securities at the Closing is subject to the satisfaction or waiver by the
Company, at or before the Closing, of each of the following conditions:

          (a) Receipt of Payment. The Investors shall have delivered payment of the
purchase price to the Company for the Securities being issued hereunder.

          (b) Representations and Warranties. The representations and warranties of the
Investors contained herein shall be true and correct in all material respects as of the date
when made and as of the Closing Date as though made on and as of such date;

          (c) Performance. The Investors shall have performed, satisfied and complied in
all material respects with all covenants, agreements and conditions required by the
Transaction Documents to be performed, satisfied or complied with by the Investors at or prior
to the Closing; and

          (d) Delivery of Registration Statement Questionnaire. The Company shall have
received from each Investor a fully completed Registration Statement Questionnaire in the form
attached hereto as Exhibit B-2 at the Closing for the Company’s use in preparing the
Registration Statement pursuant to Article VI below.

 

 

ARTICLE VI

REGISTRATION RIGHTS

     6.1 Registration Statement.

          (a) On or prior to the Filing Date, the Company shall prepare and file with the SEC a
Registration Statement covering the resale of all Registrable Securities for an offering to be
made on a continuous basis pursuant to Rule 415. The Registration Statement shall be on Form
S-3 (except if the Company is not then eligible to register for resale the Registrable
Securities on Form S-3, in which case such registration shall be on another appropriate form
in accordance with the Securities Act and the Exchange Act) and shall contain (except if
otherwise directed by the Investors or requested by the SEC) the “Plan of Distribution” in
substantially the form attached hereto as Exhibit D.

          (b) The Company shall use its reasonable Best Efforts to cause the Registration Statement
to be declared effective by the SEC as promptly as practical after the filing thereof, but in
any event prior to the Required Effectiveness Date, and shall use its reasonable Best Efforts
to keep the Registration Statement continuously effective under the Securities Act until the
earlier of (i) the date that all Common Shares and Warrant Shares covered by such Registration
Statement have been sold or can be sold publicly under Rule 144(k) or (ii) the seventh
anniversary of the Closing Date (the “Effectiveness Period”); provided that, upon notification
by the SEC that a Registration Statement will not be reviewed or is no longer subject to
further review and comments, the Company shall request acceleration of such Registration
Statement within five (5) Trading Days after receipt of such notice and request that it
becomes effective on 4:00 p.m. New York City time on the Effective Dave and file a prospectus
supplement for any Registration Statement, whether or not required under Rule 424 (or
otherwise), by 9:00 a.m. New York City time the day after the Effective Date.

          (c) The Company shall notify the Investors in writing promptly (and in any event within
two (2) Trading Days) after receiving notification from the SEC that the Registration
Statement has been declared effective.

          (d) Should an Event (as defined below) occur, then upon the occurrence of such Event, and
on every monthly anniversary thereof until the applicable Event is cured, as relief for the
damages suffered therefrom by the Investors (the parties hereto agreeing that the liquidated
damages provided for in this Section 6.1(d) constitute a reasonable estimate of the damages
that may be incurred by the Investors by reason of the Event and that such liquidated damages
represent the exclusive monetary remedy for the Investors for damages suffered due to an
Event), the Company shall pay to each Investor an amount in cash, as liquidated damages and
not as a penalty, equal to one percent (1.0%) of (i) the number of Common Shares held by such
Investor as of the date of such Event, multiplied by (ii) the purchase price paid by such
Investor for such Common Shares then held. The payments to which an Investor shall be
entitled pursuant to this Section 6.1(d) are referred to herein as “Event Payments.”
Any Event Payments payable pursuant to the terms hereof shall apply on a pro rated basis for
any portion of a month prior to the cure of an Event. In the event the Company fails to make
Event Payments in a timely manner, such Event Payments shall bear interest at the rate of one
percent

 

 

(1.0%) per month (prorated for partial months) until paid in full. All pro rated
calculations made pursuant to this paragraph shall be based upon the actual number of days in
such pro rated month. Notwithstanding the foregoing provisions, in no event shall the Company
be obligated to pay such liquidated damages (a) to more than one Investor in respect of the
same Securities for the same period of time or (b) in an aggregate amount that exceeds 10% of
the purchase price paid by such Investor for its Securities pursuant to this Agreement, as set
forth opposite such Investor’s name on Exhibit A hereto under the heading “Purchase Price.”

For such purposes, each of the following shall constitute an “Event”:

                    (i) the Registration Statement is not filed on or prior to the Filing Date or is not declared
effective on or prior to the Required Effectiveness Date;

                    (ii) except (A) as provided for in Section 6.1(e), (B) if the Company is involved in a
“Rule 13e-3 transaction” as defined in Rule 13e-3 under the Exchange Act, or (C) in the event of a
merger or consolidation of the Company or a sale of more than fifty percent (50%) of the assets of
the Company in one or a series of related transactions, unless following such transaction or series
of transactions, the holders of the Company’s securities prior to the first such transaction
continue to hold at least fifty percent (50%) of the voting rights and equity interests of the
surviving entity or acquirer (clauses (B) and (C), collectively, the “Excluded Events”), after the
Effective Date, an Investor is not permitted to sell Registrable Securities under the Registration
Statement (or a subsequent Registration Statement filed in replacement thereof) for any reason
(other than the fault of such Investor) for five (5) or more Trading Days (whether or not
consecutive);

                    (iii) except as a result of the Excluded Events, the Common Stock is not listed or quoted, or
is suspended from trading, on an Eligible Market for a period of three (3) Trading Days (which need
not be consecutive Trading Days) during the Effectiveness Period; or

                    (iv) the exercise rights of the Investors pursuant to the Warrants are suspended.

          (e) Notwithstanding anything in this Agreement to the contrary, after sixty (60)
consecutive Trading Days of continuous effectiveness of the initial Registration Statement
filed and declared effective pursuant to this Agreement, the Company may, by written notice to
the Investors, suspend sales under a Registration Statement after the Effective Date thereof
and/or require that the Investors immediately cease the sale of shares of Common Stock
pursuant thereto and/or defer the filing of any subsequent Registration Statement if the Board
of Directors of the Company determines in good faith, by appropriate resolutions, that the
Company would, in the absence of such delay or suspension hereunder, be required under state
or federal securities laws to disclose any corporate development, a potentially significant
transaction or event involving the Company, or any negotiations, discussions, or proposals
directly relating thereto, in either case the disclosure of which would reasonably be expected
to have a negative effect upon the Company or its stockholders; provided further, that the
Company may suspend the use of any Prospectus to the extent necessary to file any
post-effective amendment to the Registration Statement in order (i) to amend the table of
selling stockholders within the Registration Statement to reflect transfers of the Securities
by Investors

 

 

to their Affiliates as permitted under Section 4.1(a) or (ii) to amend the Registration
Statement pursuant to the Company’s undertakings as set forth in the Registration Statement
and in Item 512 of Regulation S-K under the Securities Act. Upon receipt of such notice, each
Investor shall immediately discontinue any sales of Registrable Securities pursuant to such
registration until such Investor is advised in writing by the Company that the current
Prospectus or amended Prospectus, as applicable, may be used. In no event, however, shall
this right be exercised to suspend sales beyond the period during which (in the good faith
determination of the Company’s Board of Directors) the failure to require such suspension
would be materially detrimental to the Company. The Company’s rights under this Section
6(e) may be exercised for a period of no more than twenty (20) Trading Days at a time and
not more than three (3) times in any twelve (12) month period, without such suspension being
considered as part of an Event Payment determination. Immediately after the end of any
suspension period under this Section 6(e), the Company shall take all commercially
reasonable actions (including filing any required supplemental prospectus) to restore the
effectiveness of the applicable Registration Statement and the ability of the Investors to
publicly resell their Registrable Securities pursuant to such effective Registration
Statement.

          (f) The Company shall not, from the date hereof until the Effective Date of the
Registration Statement, prepare and file with the SEC a registration statement relating to an
offering for cash for its own account under the Securities Act of any of its equity
securities, other than any registration statement or post-effective amendment to a
registration statement (or supplement thereto) relating to the Company’s employee benefit
plans registered on Form S-8.

     6.2 Registration Procedures. In connection with the Company’s registration
obligations hereunder, the Company shall:

          (a) (i) Subject to Section 6.1(e), prepare and file with the SEC such amendments,
including post-effective amendments, to each Registration Statement and the Prospectus used in
connection therewith as may be necessary to keep the Registration Statement continuously
effective, as to the applicable Registrable Securities for the Effectiveness Period and
prepare and file with the SEC such additional Registration Statements in order to register for
resale under the Securities Act all of the Registrable Securities during the Effectiveness
Period; (ii) cause the related Prospectus to be amended or supplemented by any required
Prospectus supplement, and as so supplemented or amended to be filed pursuant to Rule 424;
(iii) respond as promptly as reasonably practical, and in any event within 12 Trading Days
(except to the extent that the Company reasonably requires additional time to respond to
accounting comments), to any comments received from the SEC with respect to the Registration
Statement or any amendment thereto; and (iv) comply in all material respects with the
provisions of the Securities Act and the Exchange Act applicable to the Company with respect
to the disposition of all Registrable Securities covered by the Registration Statement during
the applicable period in accordance with the intended methods of disposition by the Investors
thereof set forth in the Registration Statement as so amended or in such Prospectus as so
supplemented.

 

 

          (b) Notify the Investors as promptly as reasonably practical, and (if requested by the
Investors) confirm such notice in writing no later than two (2) Trading Days thereafter, of
any of the following events: (i) any Registration Statement or any post-effective amendment
is declared effective; (ii) the SEC issues any stop order suspending the effectiveness of any
Registration Statement or initiates any Proceedings for that purpose; (iii) the Company
receives notice of any suspension of the qualification or exemption from qualification of any
Registrable Securities for sale in any jurisdiction, or the initiation or threat of any
Proceeding for such purpose; or (iv) the financial statements included in any Registration
Statement become ineligible for inclusion therein or any Registration Statement or Prospectus
or other document contains any untrue statement of a material fact or omits to state any
material fact required to be stated therein or necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading.

          (c) Use its reasonable Best Efforts to avoid the issuance of or, if issued, obtain the
withdrawal of (i) any order suspending the effectiveness of any Registration Statement, or
(ii) any suspension of the qualification (or exemption from qualification) of any of the
Registrable Securities for sale in any jurisdiction, as soon as possible.

          (d) If requested by an Investor, provide such Investor, without charge, at least one
conformed copy of each Registration Statement and each amendment thereto, including financial
statements and schedules, and all exhibits to the extent requested by such Person (including
those previously furnished or incorporated by reference) promptly after the filing of such
documents with the SEC.

          (e) Promptly deliver to each Investor, without charge, as many copies of the Prospectus
or Prospectuses (including each form of prospectus) and each amendment or supplement thereto
as such Persons may reasonably request. The Company hereby consents to the use of such
Prospectus and each amendment or supplement thereto by each of the selling Investors in
connection with the offering and sale of the Registrable Securities covered by such Prospectus
and any amendment or supplement thereto to the extent permitted by federal and state
securities laws and regulations.

          (f) Prior to any public offering of Registrable Securities, use its reasonable Best
Efforts to register or qualify or cooperate with the selling Investors in connection with the
registration or qualification (or exemption from such registration or qualification) of such
Registrable Securities for offer and sale under the securities or Blue Sky laws of such
jurisdictions within the United States as any Investor requests in writing, to keep each such
registration or qualification (or exemption therefrom) effective for so long as required, but
not to exceed the duration of the Effectiveness Period, and to do any and all other acts or
things reasonably necessary or advisable to enable the disposition in such jurisdictions of
the Registrable Securities covered by a Registration Statement; provided,
however, that the Company shall not be obligated to file any general consent to
service of process or to qualify as a foreign corporation or as a dealer in securities in any
jurisdiction in which it is not so qualified or to subject itself to taxation in respect of
doing business in any jurisdiction in which it is not otherwise so subject.

 

 

          (g) Cooperate with the Investors to facilitate the timely preparation and delivery of
certificates representing Registrable Securities to be delivered to a transferee pursuant to a
Registration Statement, which certificates shall be free, to the extent permitted by this
Agreement and under law, of all restrictive legends, and to enable such Registrable Securities
to be in such denominations and registered in such names as any such Investors may reasonably
request.

          (h) Upon the occurrence of any event described in Section 6.2(c)(vii), as
promptly as reasonably possible, prepare a supplement or amendment, including a post-effective
amendment, to the Registration Statement or a supplement to the related Prospectus or any
document incorporated or deemed to be incorporated therein by reference, and file any other
required document so that, as thereafter delivered, neither the Registration Statement nor
such Prospectus will contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading.

          (i) Comply with all rules and regulations of the SEC applicable to the Company in
connection with the registration of the Securities.

          (j) It shall be a condition precedent to the obligations of the Company to complete the
registration pursuant to this Agreement with respect to the Registrable Securities of any
particular Investor or to make any Event Payments set forth in Section 6.1(c) to such Investor
that such Investor furnish to the Company the information specified in Exhibits B-1,
B-2 and B-3 hereto and such other information regarding itself, the
Registrable Securities and other shares of Common Stock held by it and the intended method of
disposition of the Registrable Securities held by it (if different from the Plan of
Distribution set forth on Exhibit D hereto) as shall be reasonably required to effect the
registration of such Registrable Securities and shall complete and execute such documents in
connection with such registration as the Company may reasonably request.

          (k) The Company shall comply with all applicable rules and regulations of the SEC under
the Securities Act and the Exchange Act, including, without limitation, Rule 172 under the
Securities Act, file any final Prospectus, including any supplement or amendment thereof, with
the SEC pursuant to Rule 424 under the Securities Act, promptly inform the Holders in writing
if, at any time during the Effectiveness Period, the Company does not satisfy the conditions
specified in Rule 172 and, as a result thereof, the Holders are required to make available a
Prospectus in connection with any disposition of Registrable Securities and take such other
actions as may be reasonably necessary to facilitate the registration of the Registrable
Securities hereunder.

     6.3 Registration Expenses. The Company shall pay all fees and expenses incident to
the performance of or compliance with Article VI of this Agreement by the Company, including
without limitation (a) all registration and filing fees and expenses, including without limitation
those related to filings with the SEC, any Trading Market and in connection with applicable state
securities or Blue Sky laws, (b) printing expenses (including without limitation expenses of
printing certificates for Registrable Securities), (c) messenger, telephone and delivery expenses
incurred by the

 

 

Company, (d) fees and disbursements of counsel for the Company, (e) fees and expenses of all
other Persons retained by the Company in connection with the consummation of the transactions
contemplated by this Agreement, and (f) all listing fees to be paid by the Company to the Trading
Market.

     6.4 Indemnification

          (a) Indemnification by the Company. The Company shall, notwithstanding any
termination of this Agreement, indemnify and hold harmless each Investor, the officers,
directors, partners, members, agents and employees of each of them, each Person who controls
any such Investor (within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act) and the officers, directors, partners, members, agents and employees of each
such controlling Person, to the fullest extent permitted by applicable law, from and against
any and all Losses, as incurred, arising out of or relating to any untrue or alleged untrue
statement of a material fact contained in the Registration Statement, any Prospectus or any
form of Company prospectus or in any amendment or supplement thereto or in any Company
preliminary prospectus, or arising out of or relating to any omission or alleged omission of a
material fact required to be stated therein or necessary to make the statements therein (in
the case of any Prospectus or form of prospectus or supplement thereto, in the light of the
circumstances under which they were made) not misleading, provided, however, that the Company
shall not be liable in any such case to the extent that such Loss arises out of, or is based
upon, an untrue statement or omission or alleged untrue statement or omission made in such
Registration Statement in reliance upon and in conformity with information furnished to the
Company by or on behalf of an Investor in writing expressly for use therein, or to the extent
that such information relates to such Investor or such Investor’s proposed method of
distribution of Registrable Securities and was reviewed and approved by such Investor for use
in the Registration Statement (it being understood that the information provided by the
Investor to the Company in Exhibits B-1, B-2 and B-3 and the Plan of
Distribution set forth on Exhibit D, as the same may be modified by such Investor and
other information provided by the Investor to the Company in or pursuant to the Transaction
Documents constitutes information reviewed and expressly approved by such Investor in writing
expressly for use in the Registration Statement), such Prospectus or such form of Prospectus
or in any amendment or supplement thereto; provided further, however, that the Company shall
not be liable to any Investor of Registrable Securities (or any partner, member, officer,
director or controlling person of such Investor) to the extent that any such Loss is caused by
an untrue statement or omission or alleged untrue statement or omission made in any
preliminary prospectus if (i) (A) such untrue statement or omission is corrected in an
amendment or supplement to the prospectus and (B) having previously been furnished by or on
behalf of the Company with copies of the prospectus as so amended or supplemented or, if Rule
172 is then in effect, notified by the Company that such amended or supplemented prospectus
has been filed with the SEC, such Investor thereafter fails to deliver such prospectus as so
amended or supplemented, with or prior to, or, if Rule 172 is then in effect, such Investor
fails to confirm that the prospectus as so amended or supplemented was deemed to be delivered
prior to, the delivery of written confirmation of the sale of a Registrable Security to the
person asserting the claim from which such Loss resulted or (ii) such Investor sold
Registrable Securities in violation of such Investor’s covenant contained in Section 6.5.

 

 

          (b) Indemnification by Investors. Each Investor shall, severally and not
jointly, indemnify and hold harmless the Company, its directors, officers, agents and
employees, each Person who controls the Company (within the meaning of Section 15 of the
Securities Act and Section 20 of the Exchange Act), and the directors, officers, agents or
employees of such controlling Persons, to the fullest extent permitted by applicable law, from
and against all Losses (as determined by a court of competent jurisdiction in a final judgment
not subject to appeal or review) arising out of any material breach of this Agreement by such
Investor or any untrue statement or alleged untrue statement of a material fact contained in
the Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or
supplement thereto, or arising out of or relating to any omission or alleged omission of a
material fact required to be stated therein or necessary to make the statements therein (in
the case of any Prospectus or form of prospectus or supplement thereto, in the light of the
circumstances under which they were made) not misleading, in each case, on the effective date
thereof, but only to the extent that such untrue statement or omission is contained in any
information so furnished by such Investor in writing to the Company specifically for inclusion
in such Registration Statement or such Prospectus or to the extent that (i) such untrue
statements or omissions are based solely upon information regarding such Investor furnished to
the Company by such Investor in writing expressly for use therein, or to the extent that such
information relates to such Investor or such Investor’s proposed method of distribution of
Registrable Securities and was reviewed and approved by such Investor for use in the
Registration Statement (it being understood that the information provided by the Investor to
the Company in Exhibits B-1, B-2 and B-3 and the Plan of Distribution
set forth on Exhibit D, as the same may be modified by such Investor and other
information provided by the Investor to the Company in or pursuant to the Transaction
Documents constitutes information reviewed and expressly approved by such Investor in writing
expressly for use in the Registration Statement), such Prospectus or such form of Prospectus
or in any amendment or supplement thereto. In no event shall the liability of any selling
Investor hereunder be greater in amount than the dollar amount of the net proceeds received by
such Investor upon the sale of the Registrable Securities giving rise to such indemnification
obligation.

          (c) Conduct of Indemnification Proceedings. If any Proceeding shall be brought
or asserted against any Person entitled to indemnity hereunder (an “Indemnified Party”), such
Indemnified Party shall promptly notify the Person from whom indemnity is sought (the
“Indemnifying Party”) in writing, and the Indemnifying Party shall assume the defense thereof,
including the employment of counsel reasonably satisfactory to the Indemnified Party and the
payment of all fees and expenses incurred in connection with defense thereof; provided, that
the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying
Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the
extent that such failure shall have adversely prejudiced the Indemnifying Party.

     An Indemnified Party shall have the right to employ separate counsel in any such Proceeding
and to participate in the defense thereof, but the fees and expenses of such counsel shall be at
the expense of such Indemnified Party or Parties unless: (i) the Indemnifying Party has agreed in
writing to pay such fees and expenses; (ii) the Indemnifying Party shall have failed promptly to
assume the defense of such Proceeding; or (iii) the named parties to any such Proceeding (including

 

 

any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and
such Indemnified Party shall have been advised by counsel that a conflict of interest is likely to
exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party (in
which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to
employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not
have the right to assume the defense thereof and the reasonable fees and expenses of separate
counsel shall be at the expense of the Indemnifying Party). It being understood, however, that the
Indemnifying Party shall not, in connection with any one such Proceeding (including separate
Proceedings that have been or will be consolidated before a single judge) be liable for the fees
and expenses of more than one separate firm of attorneys at any time for all Indemnified Parties,
which firm shall be appointed by a majority of the Indemnified Parties. The Indemnifying Party
shall not be liable for any settlement of any such Proceeding effected without its written consent,
which consent shall not be unreasonably withheld or delayed. No Indemnifying Party shall, without
the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding
in respect of which any Indemnified Party is a party, unless such settlement includes an
unconditional release of such Indemnified Party from all liability on claims that are the subject
matter of such Proceeding.

     All reasonable fees and expenses of the Indemnified Party (including reasonable fees and
expenses to the extent incurred in connection with investigating or preparing to defend such
Proceeding in a manner not inconsistent with this Section) shall be paid to the Indemnified Party,
as incurred, within twenty (20) Trading Days of written notice thereof to the Indemnifying Party
(regardless of whether it is ultimately determined that an Indemnified Party is not entitled to
indemnification hereunder; provided, that the Indemnifying Party may require such Indemnified Party
to undertake to reimburse all such fees and expenses to the extent it is finally judicially
determined that such Indemnified Party is not entitled to indemnification hereunder).

          (d) Contribution. If a claim for indemnification under Section 6.4(a) or
(b) is unavailable to an Indemnified Party (by reason of public policy or otherwise),
then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute
to the amount paid or payable by such Indemnified Party as a result of such Losses, in such
proportion as is appropriate to reflect the relative fault of the Indemnifying Party and
Indemnified Party in connection with the actions, statements or omissions that resulted in
such Losses as well as any other relevant equitable considerations. The relative fault of
such Indemnifying Party and Indemnified Party shall be determined by reference to, among other
things, whether any action in question, including any untrue or alleged untrue statement of a
material fact or omission or alleged omission of a material fact, has been taken or made by,
or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the
parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent such action, statement or omission. The amount paid or payable by a party as a result
of any Losses shall be deemed to include, subject to the limitations set forth in Section
6.4(c), any reasonable attorneys’ or other reasonable fees or expenses incurred by such
party in connection with any Proceeding to the extent such party would have been indemnified
for such fees or expenses if the indemnification provided for in this Section was available to
such party in accordance with its terms.

 

 

     The parties hereto agree that it would not be just and equitable if contribution pursuant to
this Section 6.4(d) were determined by pro rata allocation or by any other method of
allocation that does not take into account the equitable considerations referred to in the
immediately preceding paragraph. Notwithstanding the provisions of this Section 6.4(d), no
Investor shall be required to contribute, in the aggregate, any amount in excess of the amount by
which the net proceeds actually received by such Investor from the sale of the Registrable
Securities subject to the Proceeding exceeds the amount of any damages that such Investor has
otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who
was not guilty of such fraudulent misrepresentation.

     6.5 Dispositions. Each Investor agrees that it will comply with the prospectus
delivery requirements of the Securities Act as applicable to it in connection with sales of
Registrable Securities pursuant to the Registration Statement and shall sell its Registrable
Securities in accordance with the Plan of Distribution set forth in the Prospectus. Each Investor
further agrees that, upon receipt of a notice from the Company of the occurrence of any event of
the kind described in Sections 6.2(c)(ii), (iii) or (iv), such Investor
will discontinue disposition of such Registrable Securities under the Registration Statement until
such Investor is advised in writing by the Company that the use of the Prospectus, or amended
Prospectus, as applicable, may be used. The Company may provide appropriate stop orders to enforce
the provisions of this paragraph.

     6.6 No Piggyback on Registrations. Except as required pursuant to agreements listed
on Schedule 3.1(p), neither the Company nor any of its security holders (other than the Investors
in such capacity pursuant hereto) may include securities of the Company in the Registration
Statement other than the Registrable Securities.

     6.7 Piggy-Back Registrations. If at any time during the Effectiveness Period
there is not an effective Registration Statement covering all of the Registrable Securities and
the Company shall determine to prepare and file with the SEC a registration statement relating
to an offering for its own account or the account of others under the Securities Act of any of
its equity securities, other than on Form S-4 or Form S-8 (each as promulgated under the
Securities Act) or their then equivalents relating to equity securities to be issued solely in
connection with any acquisition of any entity or business or equity securities issuable in
connection with stock option or other employee benefit plans, then the Company shall send to
each Investor not then eligible to sell all of their Shares under Rule 144 in a three (3) month
period, written notice of such determination and if, within ten (10) days after receipt of such
notice, any such Investor shall so request in writing, the Company shall include in such
registration statement all or any part of such Registrable Securities such Investor requests to
be registered. Notwithstanding the foregoing, in the event that, in connection with any
underwritten public offering, the managing underwriter(s) thereof shall impose a limitation on
the number of shares of Common Stock which may be included in the Registration Statement
because, in such underwriter(s)’ judgment, marketing or other factors dictate such limitation
is necessary to facilitate public distribution, then the Company shall be obligated to include
in such Registration Statement only such limited portion of the Registrable Securities with
respect to which such Investor has requested inclusion hereunder as the underwriter shall
permit. If an offering in connection with which an Investor is entitled to registration under
this Section 6.7 is an underwritten offering, then each Investor

 

 

whose Registrable Securities are included in such Registration Statement shall, unless
otherwise agreed by the Company, offer and sell such Registrable Securities in an underwritten
offering using the same underwriter or underwriters and, subject to the provisions of this
Agreement, on the same terms and conditions as other shares of Common Stock included in such
underwritten offering and shall enter into an underwriting agreement in a form and substance
reasonably satisfactory to the Company and the underwriter or underwriters. Upon the
effectiveness the registration statement for which piggy-back registration has been provided in
this Section 6.7, any Event Payments payable to an Investor whose Securities are
included in such registration statement shall terminate.

ARTICLE VII

MISCELLANEOUS

     7.1 Termination. This Agreement may be terminated by the Company or any Investor, by
written notice to the other parties, if the Closing has not been consummated by the third Business
Day following the date of this Agreement; provided that no such termination will affect the right
of any party to sue for any breach by the other party (or parties).

     7.2 Fees and Expenses. Except as expressly set forth in the Transaction Documents to
the contrary, each party shall pay the fees and expenses of its advisers, counsel, accountants and
other experts, if any, and all other expenses incurred by such party incident to the negotiation,
preparation, execution, delivery and performance of this Agreement. The Company shall pay all
Transfer Agent fees, stamp taxes and other taxes and duties levied in connection with the sale and
issuance of their applicable Securities. The Company shall pay the placement fee and reasonable
expenses of the Agent in connection with the sale and issuance of the Securities.

     7.3 Entire Agreement. The Transaction Documents, together with the Exhibits and
Schedules thereto, contain the entire understanding of the parties with respect to the subject
matter hereof and supersede all prior agreements and understandings, oral or written, with respect
to such matters, which the parties acknowledge have been merged into such documents, exhibits and
schedules. At or after the Closing, and without further consideration, the Company will execute
and deliver to the Investors such further documents as may be reasonably requested in order to give
practical effect to the intention of the parties under the Transaction Documents.

     7.4 Notices. Any and all notices or other communications or deliveries required or
permitted to be provided hereunder shall be in writing and shall be deemed given and effective on
the earliest of (a) the date of transmission, if such notice or communication is delivered via
facsimile or email at the facsimile number or email address specified in this Section prior to
6:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of
transmission, if such notice or communication is delivered via facsimile or email at the facsimile
number or email address specified in this Section on a day that is not a Trading Day or later than
6:30 p.m. (New York City time) on any Trading Day, (c) the Trading Day following the date of
deposit with a nationally recognized overnight courier service, or (d) upon actual receipt by the
party to whom such notice is required to be given. The addresses, facsimile numbers and email
addresses for such notices and communications are those set forth on the signature pages hereof, or
such other address or facsimile number as may be designated in writing hereafter, in the same
manner, by any such Person.

 

 

     7.5 Amendments; Waivers. No provision of this Agreement may be waived or amended
except in a written instrument signed, in the case of an amendment, by the Company and the holders
of at least 80% of the Registrable Securities held on the date of such amendment or, in the case of
a waiver, by the party against whom enforcement of any such waiver is sought. No waiver of any
default with respect to any provision, condition or requirement of this Agreement shall be deemed
to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any
other provision, condition or requirement hereof, nor shall any delay or omission of either party
to exercise any right hereunder in any manner impair the exercise of any such right.
Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with
respect to a matter that relates exclusively to the rights of Investors under Article VI
may be given by Investors holding at least a majority of the Registrable Securities to which such
waiver or consent relates, and any such amendment shall be binding upon the Company and all holders
of Registrable Securities.

     7.6 Construction. The headings herein are for convenience only, do not constitute a
part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.
The language used in this Agreement will be deemed to be the language chosen by the parties to
express their mutual intent, and no rules of strict construction will be applied against any party.

     7.7 Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the parties and their successors and permitted assigns. The Company may not assign this
Agreement or any rights or obligations hereunder without the prior written consent of the
Investors. Any Investor may assign its rights under this Agreement to any Person to whom such
Investor assigns or transfers any Securities, provided (i) such transferor agrees in writing with
the transferee or assignee to assign such rights, and a copy of such agreement is furnished to the
Company after such assignment, (ii) the Company is furnished with written notice of (x) the name
and address of such transferee or assignee and (y) the Registrable Securities with respect to which
such registration rights are being transferred or assigned, (iii) following such transfer or
assignment, the further disposition of such securities by the transferee or assignee is restricted
under the Securities Act and applicable state securities laws, (iv) such transferee agrees in
writing to be bound, with respect to the transferred Securities, by the provisions hereof that
apply to the “Investors,” and (v) such transfer shall have been made in accordance with the
applicable requirements of this Agreement and with all laws applicable thereto.

     7.8 No Third-Party Beneficiaries. This Agreement is intended for the benefit of the
parties hereto and their respective successors and permitted assigns and is not for the benefit of,
nor may any provision hereof be enforced by, any other Person, except that each Indemnified Party
is an intended third party beneficiary of Section 6.4 and (in each case) may enforce the
provisions of such Sections directly against the parties with obligations thereunder.

     7.9 Governing Law; Venue; Waiver of Jury Trial. THE CORPORATE LAWS OF THE STATE OF
DELAWARE SHALL GOVERN ALL ISSUES CONCERNING THE RELATIVE RIGHTS OF THE COMPANY AND ITS
STOCKHOLDERS. ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION
OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK. THE COMPANY AND INVESTORS HEREBY IRREVOCABLY SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF
THE STATE AND

 

 

FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN FOR THE ADJUDICATION OF
ANY DISPUTE BROUGHT BY THE COMPANY OR ANY INVESTOR HEREUNDER, IN CONNECTION HEREWITH OR WITH ANY
TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED HEREIN (INCLUDING WITH RESPECT TO THE ENFORCEMENT OF
ANY OF THE TRANSACTION DOCUMENTS), AND HEREBY IRREVOCABLY WAIVE, AND AGREE NOT TO ASSERT IN ANY
SUIT, ACTION OR PROCEEDING BROUGHT BY THE COMPANY OR ANY INVESTOR, ANY CLAIM THAT IT IS NOT
PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, OR THAT SUCH SUIT, ACTION OR PROCEEDING
IS IMPROPER. EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO
PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF VIA
REGISTERED OR CERTIFIED MAIL OR OVERNIGHT DELIVERY (WITH EVIDENCE OF DELIVERY) TO SUCH PARTY AT THE
ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT AND AGREES THAT SUCH SERVICE SHALL
CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN
SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW. THE
COMPANY AND INVESTORS HEREBY WAIVE ALL RIGHTS TO A TRIAL BY JURY.

     7.10 Survival. The representations and warranties contained herein shall survive the
Closing.

     7.11 Execution. This Agreement may be executed in two or more counterparts, all of
which when taken together shall be considered one and the same agreement and shall become effective
when counterparts have been signed by each party and delivered to the other party, it being
understood that both parties need not sign the same counterpart. In the event that any signature
is delivered by facsimile transmission or email attachment, such signature shall create a valid and
binding obligation of the party executing (or on whose behalf such signature is executed) with the
same force and effect as if such facsimile or email-attached signature page were an original
thereof.

     7.12 Severability. If any provision of this Agreement is held to be invalid or
unenforceable in any respect, the validity and enforceability of the remaining terms and provisions
of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt
to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon
so agreeing, shall incorporate such substitute provision in this Agreement.

     7.13 Replacement of Securities. If any certificate or instrument evidencing any
Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued
in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution
therefor, a new certificate or instrument, but only upon receipt of evidence reasonably
satisfactory to the Company of such loss, theft or destruction and the execution by the holder
thereof of a customary lost certificate affidavit of that fact and an agreement to indemnify and
hold harmless the Company for any losses in connection therewith. The applicants for a new
certificate or instrument under such circumstances shall also pay any reasonable third-party costs
associated with the issuance of such replacement Securities.

 

 

     7.14 Remedies. In addition to being entitled to exercise all rights provided herein
or granted by law, including recovery of damages, each of the Investors and the Company will be
entitled to seek specific performance under the Transaction Documents. The parties agree that
monetary damages may not be adequate compensation for any loss incurred by reason of any breach of
obligations described in the foregoing sentence and hereby agrees to waive in any action for
specific performance of any such obligation (other than in connection with any action for temporary
restraining order) the defense that a remedy at law would be adequate.

     7.15 Adjustments in Share Numbers and Prices. In the event of any stock split,
subdivision, dividend or distribution payable in shares of Common Stock (or other securities or
rights convertible into, or entitling the holder thereof to receive directly or indirectly shares
of Common Stock), combination or other similar recapitalization or event occurring after the date
hereof and prior to the Closing, each reference in any Transaction Document to a number of shares
or a price per share shall be amended to appropriately account for such event.

     7.16 Independent Nature of Investors’ Obligations and Rights. The obligations of each
Investor under any Transaction Document are several and not joint with the obligations of any other
Investor, and no Investor shall be responsible in any way for the performance of the obligations of
any other Investor under any Transaction Document. The decision of each Investor to purchase
Securities pursuant to this Agreement has been made by such Investor independently of any other
Investor and independently of any information, materials, statements or opinions as to the
business, affairs, operations, assets, properties, liabilities, results of operations, condition
(financial or otherwise) or prospects of the Company which may have been made or given by any other
Investor or by any agent or employee of any other Investor, and no Investor or any of its agents or
employees shall have any liability to any other Investor (or any other person) relating to or
arising from any such information, materials, statements or opinions. Nothing contained herein or
in any Transaction Document, and no action taken by any Investor pursuant thereto, shall be deemed
to constitute the Investors as a partnership, an association, a joint venture or any other kind of
entity, or create a presumption that the Investors are in any way acting in concert or as a group
with respect to such obligations or the transactions contemplated by the Transaction Document.
Each Investor acknowledges that no other Investor has acted as agent for such Investor in
connection with making its investment hereunder and that no other Investor will be acting as agent
of such Investor in connection with monitoring its investment hereunder. Each Investor shall be
entitled to independently protect and enforce its rights, including without limitation the rights
arising out of this Agreement or out of the other Transaction Documents, and it shall not be
necessary for any other Investor to be joined as an additional party in any proceeding for such
purpose.

[SIGNATURE PAGES TO FOLLOW]

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement
to be duly executed by their respective authorized signatories as of the date first indicated
above.

	 	 	 	 	 
	 	 	IOMAI CORPORATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Stanley C. Erck
	 

	 	 	 	 
	 	 	Name: Stanley C. Erck
	 	 	Title: Chief Executive Officer
	 
	 	 	 	 
	 	 	Address for Notice:
	 
	 	 	 	 
	 

	 	 	 	Iomai Corporation
	 

	 	 	 	20 Firstfield Road, Suite 250
	 

	 	 	 	Gaithersburg, Maryland 20878
	 
	 	 	 	 
	 	 	Facsimile No.: (301) 556-4501
	 	 	Telephone No.: (301) 556-4500
	 	 	Attn: Russell P. Wilson
	 
	 	 	 	 
	 	 	With a copy to:
	 
	 	 	 	 
	 

	 	 	 	Paul Kinsella, Esq.
	 

	 	 	 	Ropes & Gray LLP
	 

	 	 	 	One International Place
	 

	 	 	 	Boston, Massachusetts 02110
	 
	 	 	 	 
	 	 	Facsimile: (617) 951-7050

	 	 	Telephone: (617) 951-7000

COMPANY SIGNATURE PAGE

 

 

Exhibit A

Schedule of Investors

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Five-Year	 	 	Four-Month	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Warrant	 	 	Warrant	 	 	 	 
	Investor	 	Units	 	 	Common Shares	 	 	Shares	 	 	Shares	 	 	Purchase Price	 
	New Enterprise Associates 10

	 	 	1,572,958	 	 	 	1,572,958	 	 	 	550,535	 	 	 	550,535	 	 	$	7,970,964.59	 
	Limited Partnership

1119 St. Paul Street

Baltimore, MD 21202

Attn: Louis Citron
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	RA Capital Biotech Fund, LP

	 	 	988,554	 	 	 	988,554	 	 	 	345,994	 	 	 	345,994	 	 	$	5,009,497.49	 
	111 Huntington Ave., Suite 610

Boston, MA 02199

Attn: Peter Kolchinsky
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	RA Capital Biotech Fund II, LP

	 	 	15,462	 	 	 	15,462	 	 	 	5,412	 	 	 	5,412	 	 	$	78,353.69	 
	111 Huntington Ave., Suite 610

Boston, MA 02199

Attn: Peter Kolchinsky
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Visium Balanced Fund, LP

	 	 	105,047	 	 	 	105,047	 	 	 	36,766	 	 	 	36,766	 	 	$	532,325.67	 
	950 Third Avenue, 29th Floor

New York, NY 10022

Attn: Mark Gottlieb
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Visium Balanced Offshore Fund, Ltd.

950 Third Avenue, 29th Floor

New York, NY 10022

Attn: Mark Gottlieb
	 	 	167,120	 	 	 	167,120	 	 	 	58,492	 	 	 	58,492	 	 	$	846,880.60	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Visium Long Bias Fund, LP

950 Third Avenue, 29th Floor

New York, NY 10022

Attn: Mark Gottlieb
	 	 	47,315	 	 	 	47,315	 	 	 	16,560	 	 	 	16,560	 	 	$	239,768.76	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Visium Long Bias Offshore Fund, Ltd.

950 Third Avenue, 29th Floor

New York, NY 10022

Attn: Mark Gottlieb
	 	 	151,580	 	 	 	151,580	 	 	 	53,053	 	 	 	53,053	 	 	$	768,131.65	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Atlas Master Fund, Ltd.

c/o Balyasny Asset Management

135 E. 57th Street, 27th Floor

New York, NY 10022

Attn: Kirk Johansen
	 	 	28,938	 	 	 	28,938	 	 	 	10,129	 	 	 	10,129	 	 	$	146,643.32	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Five-Year	 	 	Four-Month	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Warrant	 	 	Warrant	 	 	 	 
	Investor	 	Units	 	 	Common Shares	 	 	Shares	 	 	Shares	 	 	Purchase Price	 
	Lagunitas Partners LP

c/o Gruber & McBaine Capital
Management

50 Osgood Place — PH

San Francisco, CA 94133

Attn: Christine Arroyo
	 	 	200,000	 	 	 	200,000	 	 	 	70,000	 	 	 	70,000	 	 	$	1,013,500.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gruber & McBaine International

c/o Gruber & McBaine Capital
Management

50 Osgood Place — PH

San Francisco, CA 94133

Attn: Christine Arroyo
	 	 	70,000	 	 	 	70,000	 	 	 	24,500	 	 	 	24,500	 	 	$	354,725.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TTEES Hamilton College

c/o Gruber & McBaine Capital
Management

50 Osgood Place — PH

San Francisco, CA 94133

Attn: Christine Arroyo
	 	 	25,000	 	 	 	25,000	 	 	 	8,750	 	 	 	8,750	 	 	$	126,687.50	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	The Wallace Foundation

c/o Gruber & McBaine Capital
Management

50 Osgood Place — PH

San Francisco, CA 94133

Attn: Christine Arroyo
	 	 	25,000	 	 	 	25,000	 	 	 	8,750	 	 	 	8,750	 	 	$	126,687.50	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Jon D. & Linda W. Gruber Trust

c/o Gruber & McBaine Capital
Management

50 Osgood Place — PH

San Francisco, CA 94133

Attn: Christine Arroyo
	 	 	30,000	 	 	 	30,000	 	 	 	10,500	 	 	 	10,500	 	 	$	152,025.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Lindsay Gruber Dunham

c/o Gruber & McBaine Capital
Management

50 Osgood Place — PH

San Francisco, CA 94133

Attn: Christine Arroyo
	 	 	5,000	 	 	 	5,000	 	 	 	1,750	 	 	 	1,750	 	 	$	25,337.50	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Jon D. Gruber TTEE FBO
Jonathan
Wyatt Gruber Trust

c/o Gruber & McBaine Capital
Management

50 Osgood Place — PH

San Francisco, CA 94133

Attn: Christine Arroyo
	 	 	5,000	 	 	 	5,000	 	 	 	1,750	 	 	 	1,750	 	 	$	25,337.50	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Five-Year	 	 	Four-Month	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Warrant	 	 	Warrant	 	 	 	 
	Investor	 	Units	 	 	Common Shares	 	 	Shares	 	 	Shares	 	 	Purchase Price	 
	J. Patterson McBaine

c/o Gruber & McBaine Capital
Management

50 Osgood Place — PH

San Francisco, CA 94133

Attn: Christine Arroyo
	 	 	40,000	 	 	 	40,000	 	 	 	14,000	 	 	 	14,000	 	 	$	202,700.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SF Capital Partners Ltd.

c/o Stark Offshore Management LLC

3600 South Lake Drive

St. Francis, WI 53235

Attn: Brian H. Davidson
	 	 	401,606	 	 	 	401,606	 	 	 	140,562	 	 	 	140,562	 	 	$	2,035,138.38	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fort Mason Master, LP

4 Embarcadero Center, Suite 2050

San Francisco, CA 94111

Attn: Marshall Jensen
	 	 	471,436	 	 	 	471,436	 	 	 	165,003	 	 	 	165,003	 	 	$	2,389,001.98	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fort Mason Partners, LP

4 Embarcadero Center, Suite 2050

San Francisco, CA 94111

Attn: Marshall Jensen
	 	 	30,572	 	 	 	30,572	 	 	 	10,700	 	 	 	10,700	 	 	$	154,923.61	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Highbridge International LLC

c/o Highbridge Capital Management,
LLC

9 West 57th St., 27th Floor

New York, NY 10019

Attn: Ari J. Storch/Adam J. Chill
	 	 	400,000	 	 	 	400,000	 	 	 	140,000	 	 	 	140,000	 	 	$	2,027,000.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Capital Ventures International

c/o Heights Capital Management

101 California Street, Suite 3250

San Francisco, CA 94111

Attn: Martin Kobinger
	 	 	416,867	 	 	 	416,867	 	 	 	145,903	 	 	 	145,903	 	 	$	2,112,473.41	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	UBS O’Connor LLC FBO O’Connor PIPES

Corporate Strategies Master Limited

c/o UBS O’Connor LLC

One N. Wacker Drive, 32nd Floor

Chicago, IL 60606

Attn: Brian Herward
	 	 	301,204	 	 	 	301,204	 	 	 	105,421	 	 	 	105,421	 	 	$	1,526,351.17	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cranshire Capital, L.P.

3100 Dundee Rd., Suite 703

Northbrook, IL 60062

Attn: M. Kopin
	 	 	200,803	 	 	 	200,803	 	 	 	70,281	 	 	 	70,281	 	 	$	1,017,569.19	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Five-Year	 	 	Four-Month	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Warrant	 	 	Warrant	 	 	 	 
	Investor	 	Units	 	 	Common Shares	 	 	Shares	 	 	Shares	 	 	Purchase Price	 
	MPM Bioequities Master Fund LP

The John Hancock Tower

200 Clarendon Street, 54th Floor

Boston, MA 02116

Attn: Elsa Gelin
	 	 	197,803	 	 	 	197,803	 	 	 	69,231	 	 	 	69,231	 	 	$	1,002,366.70	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MPM Bioequities Investors Fund, LLC

The John Hancock Tower

200 Clarendon Street, 54th Floor

Boston, MA 02116

Attn: Elsa Gelin
	 	 	3,000	 	 	 	3,000	 	 	 	1,050	 	 	 	1,050	 	 	$	15,202.50	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Red Abbey Venture Partners, LP

2330 West Joppa Road, Suite 330

Lutherville, MD 21093

Attn: Matt Zuqa
	 	 	150,602	 	 	 	150,602	 	 	 	52,711	 	 	 	52,711	 	 	$	763,175.71	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Credit Suisse Securities (USA) LLC

11 Madison Avenue

New York, NY 10010

Attn: Eric Hough
	 	 	100,401	 	 	 	100,401	 	 	 	35,140	 	 	 	35,140	 	 	$	508,781.98	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Otago Partners, LLC

787 7th Avenue, 48th Floor

New York, NY 10019

Attn: Michael Chill
	 	 	50,200	 	 	 	50,200	 	 	 	17,570	 	 	 	17,570	 	 	$	254,388.50	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hudson Bay Fund, LP

120 Broadway, 40th Floor

New York, NY 10271

Attn: Yoav Roth
	 	 	22,590	 	 	 	22,590	 	 	 	7,906	 	 	 	7,906	 	 	$	114,474.82	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hudson Bay Overseas Fund, Ltd

120 Broadway, 40th Floor

New York, NY 10271

Attn: Yoav Roth
	 	 	27,610	 	 	 	27,610	 	 	 	9,664	 	 	 	9,664	 	 	$	139,913.68	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Mallette Capital Biotech Fund, LP

800 Third Avenue, 9th Floor

New York, NY 10022

Attn: Quin Mallette
	 	 	40,160	 	 	 	40,160	 	 	 	14,056	 	 	 	14,056	 	 	$	203,510.80	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL
	 	 	6,291,828	 	 	 	6,291,828	 	 	 	2,202,139	 	 	 	2,202,139	 	 	$	31,883,838.20	 

 

 

Exhibit B

[INSTRUCTION SHEET FOR INVESTOR]

 

 

Exhibit B-1

[STOCK CERTIFICATE QUESTIONNAIRE]

 

 

Exhibit B-2

[REGISTRATION STATEMENT QUESTIONNAIRE]

 

 

Exhibit B-3

[CERTIFICATE FOR CORPORATE, PARTNERSHIP, LIMITED LIABILITY COMPANY,

TRUST, FOUNDATION AND JOINT INVESTORS]

 

 

Exhibit C

[OPINION OF COMPANY CORPORATE COUNSEL]

 

 

Exhibit D

PLAN OF DISTRIBUTION

The selling stockholders may, from time to time, sell any or all of their shares of common stock on
any stock exchange, market or trading facility on which the shares are traded or in private
transactions. These sales may be at fixed or negotiated prices. The selling stockholders may use
any one or more of the following methods when selling shares:

	•	 	ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;
	 
	•	 	block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion
of the block as principal to facilitate the transaction;
	 
	•	 	purchases by a broker-dealer as principal and resale by the broker-dealer for its account;
	 
	•	 	an exchange distribution in accordance with the rules of the applicable exchange;
	 
	•	 	privately negotiated transactions;
	 
	•	 	short sales;
	 
	•	 	through the writing or settlement of options or other hedging transactions, whether through an options exchange or
otherwise;
	 
	•	 	broker-dealers may agree with the selling stockholders to sell a specified number of such shares at a stipulated price
per share;
	 
	•	 	a combination of any such methods of sale; and
	 
	•	 	any other method permitted pursuant to applicable law.

     The selling stockholders may also sell shares under Rule 144 under the Securities
Act, if available, rather than under this prospectus.

     Broker-dealers engaged by the selling stockholders may arrange for other brokers-dealers to
participate in sales. Broker-dealers may receive commissions or discounts from the selling
stockholders (or, if any broker-dealer acts as agent for the purchaser of shares, from the
purchaser) in amounts to be negotiated. The selling stockholders do not expect these commissions
and discounts to exceed what is customary in the types of transactions involved. Any profits on
the resale of shares of common stock by a broker-dealer acting as principal might be deemed to be
underwriting discounts or commissions under the Securities Act. Discounts, concessions,
commissions and similar selling expenses, if any, attributable to the sale of shares will be borne
by a selling stockholder. The selling stockholders may agree to indemnify any agent, dealer or
broker-dealer that

 

 

participates in transactions involving sales of the shares if liabilities are imposed on that
person under the Securities Act.

     The selling stockholders may from time to time pledge or grant a security interest in some or
all of the shares of common stock owned by them and, if they default in the performance of their
secured obligations, the pledgees or secured parties may offer and sell the shares of common stock
from time to time under this prospectus after we have filed a supplement to this prospectus under
Rule 424(b)(3) or other applicable provision of the Securities Act of 1933 supplementing or
amending the list of selling stockholders to include the pledgee, transferee or other successors in
interest as selling stockholders under this prospectus.

     The selling stockholders also may transfer the shares of common stock in other circumstances,
in which case the transferees, pledgees or other successors in interest will be the selling
beneficial owners for purposes of this prospectus and may sell the shares of common stock from time
to time under this prospectus after we have filed a supplement to this prospectus under Rule
424(b)(3) or other applicable provision of the Securities Act of 1933 supplementing or amending the
list of selling stockholders to include the pledgee, transferee or other successors in interest as
selling stockholders under this prospectus.

     The selling stockholders and any broker-dealers or agents that are involved in selling the
shares of common stock may be deemed to be “underwriters” within the meaning of the Securities Act
in connection with such sales. In such event, any commissions received by such broker-dealers or
agents and any profit on the resale of the shares of common stock purchased by them may be deemed
to be underwriting commissions or discounts under the Securities Act.

     We are required to pay all fees and expenses incident to the registration of the shares of
common stock. We have agreed to indemnify the selling stockholders against certain losses, claims,
damages and liabilities, including liabilities under the Securities Act.

     The selling stockholders have advised us that they have not entered into any agreements,
understandings or arrangements with any underwriters or broker-dealers regarding the sale of their
shares of common stock, nor is there an underwriter or coordinating broker acting in connection
with a proposed sale of shares of common stock by any selling stockholder. If we are notified by
any selling stockholder that any material arrangement has been entered into with a broker-dealer
for the sale of shares of common stock, if required, we will file a supplement to this prospectus.
If the selling stockholders use this prospectus for any sale of the shares of common stock, they
will be subject to the prospectus delivery requirements of the Securities Act.

     The anti-manipulation rules of Regulation M under the Securities Exchange Act of 1934 may
apply to sales of our common stock and activities of the selling stockholders.

 

 

Exhibit E

[COMPANY TRANSFER AGENT INSTRUCTIONS]

 

 

Exhibit G-1

[FORM OF FIVE-YEAR WARRANT]

 

 

Exhibit G-2

[FORM OF FOUR-MONTH WARRANT]exv10w18

 

Exhibit 10.18

EXECUTION VERSION

TRICO MARINE SERVICES, INC.

3.00% Senior Convertible Debentures due 2027

INDENTURE

Dated as of February 7, 2007

Wells Fargo Bank, National Association, Trustee

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 1.01	 	Definitions	 	 	1	 
	 
	 	SECTION 1.02	 	Incorporation by Reference of Trust Indenture Act	 	 	10	 
	 
	 	SECTION 1.03	 	Rules of Construction	 	 	10	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 2 THE DEBENTURES	 	 	10	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 2.01	 	Designation, Amount and Issuance of Debentures	 	 	10	 
	 
	 	SECTION 2.02	 	Form of the Debentures	 	 	11	 
	 
	 	SECTION 2.03	 	Date and Denomination of Debentures; Payment at Maturity; Payment of Interest	 	 	11	 
	 
	 	SECTION 2.04	 	Execution and Authentication	 	 	12	 
	 
	 	SECTION 2.05	 	Registrar and Paying Agent	 	 	13	 
	 
	 	SECTION 2.06	 	Paying Agent to Hold Money in Trust	 	 	13	 
	 
	 	SECTION 2.07	 	Debentureholder Lists	 	 	14	 
	 
	 	SECTION 2.08	 	Exchange and Registration of Transfer of Debentures; Restrictions on Transfer	 	 	14	 
	 
	 	SECTION 2.09	 	Replacement Debentures	 	 	19	 
	 
	 	SECTION 2.10	 	Outstanding Debentures	 	 	20	 
	 
	 	SECTION 2.11	 	Temporary Debentures	 	 	20	 
	 
	 	SECTION 2.12	 	Cancellation	 	 	21	 
	 
	 	SECTION 2.13	 	CUSIP and ISIN Numbers	 	 	21	 
	 
	 	SECTION 2.14	 	Additional Debentures	 	 	21	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 3 REDEMPTION AND REPURCHASE OF DEBENTURES	 	 	22	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 3.01	 	Optional Redemption of Debentures	 	 	22	 
	 
	 	SECTION 3.02	 	Notice of Optional Redemption; Selection of Debentures to be Redeemed	 	 	23	 
	 
	 	SECTION 3.03	 	Payment of Debentures Called for Redemption	 	 	24	 
	 
	 	SECTION 3.04	 	Repurchase at Option of Holders Upon a Fundamental Change	 	 	25	 
	 
	 	SECTION 3.05	 	Repurchase of Debentures by the Company at the Option of Holders	 	 	26	 
	 
	 	SECTION 3.06	 	Company Repurchase Notice	 	 	28	 
	 
	 	SECTION 3.07	 	Effect of Repurchase Notice; Withdrawal	 	 	29	 
	 
	 	SECTION 3.08	 	Deposit of Repurchase Price	 	 	29	 
	 
	 	SECTION 3.09	 	Debentures Repurchased in Part	 	 	30	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 4 COVENANTS	 	 	30	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 4.01	 	Payment of Debentures	 	 	30	 
	 
	 	SECTION 4.02	 	Maintenance of Office or Agency	 	 	30	 

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	 	 	 	 	 	 	Page	 
	 
	 
	 	SECTION 4.03	 	144A Information	 	 	31	 
	 
	 	SECTION 4.04	 	Existence	 	 	31	 
	 
	 	SECTION 4.05	 	Payment of Taxes and Other Claims	 	 	31	 
	 
	 	SECTION 4.06	 	Compliance Certificate	 	 	32	 
	 
	 	SECTION 4.07	 	Further Instruments and Acts	 	 	32	 
	 
	 	SECTION 4.08	 	Intentionally Omitted	 	 	32	 
	 
	 	SECTION 4.09	 	Additional Interest Notice	 	 	32	 
	 
	 	SECTION 4.10	 	Reporting Obligation	 	 	32	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 5 SUCCESSOR COMPANY	 	 	33	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 5.01	 	When Company May Merge or Transfer Assets	 	 	33	 
	 
	 	SECTION 5.02	 	Successor to be Substituted	 	 	33	 
	 
	 	SECTION 5.03	 	Opinion of Counsel to be Given Trustee	 	 	34	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 6 DEFAULTS AND REMEDIES	 	 	34	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 6.01	 	Events of Default	 	 	34	 
	 
	 	SECTION 6.02	 	Acceleration	 	 	36	 
	 
	 	SECTION 6.03	 	Other Remedies	 	 	36	 
	 
	 	SECTION 6.04	 	Waiver of Past Defaults	 	 	36	 
	 
	 	SECTION 6.05	 	Control by Majority	 	 	36	 
	 
	 	SECTION 6.06	 	Limitation on Suits	 	 	37	 
	 
	 	SECTION 6.07	 	Rights of Debentureholders to Receive Payment	 	 	37	 
	 
	 	SECTION 6.08	 	Collection Suit by Trustee	 	 	37	 
	 
	 	SECTION 6.09	 	Trustee May File Proofs of Claim	 	 	37	 
	 
	 	SECTION 6.10	 	Priorities	 	 	38	 
	 
	 	SECTION 6.11	 	Undertaking for Costs	 	 	38	 
	 
	 	SECTION 6.12	 	Waiver of Stay, Extension or Usury Laws	 	 	38	 
	 
	 	SECTION 6.13	 	Sole Remedy for Failure to Report	 	 	38	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 7 TRUSTEE	 	 	39	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 7.01	 	Duties of Trustee	 	 	39	 
	 
	 	SECTION 7.02	 	Rights of Trustee	 	 	40	 
	 
	 	SECTION 7.03	 	Individual Rights of Trustee	 	 	41	 
	 
	 	SECTION 7.04	 	Trustee's Disclaimer	 	 	41	 
	 
	 	SECTION 7.05	 	Notice of Defaults	 	 	41	 
	 
	 	SECTION 7.06	 	Reports by Trustee to Debentureholders	 	 	41	 
	 
	 	SECTION 7.07	 	Compensation and Indemnity	 	 	42	 
	 
	 	SECTION 7.08	 	Replacement of Trustee	 	 	42	 
	 
	 	SECTION 7.09	 	Successor Trustee by Merger	 	 	43	 
	 
	 	SECTION 7.10	 	Eligibility; Disqualification	 	 	44	 
	 
	 	SECTION 7.11	 	Preferential Collection of Claims Against Company	 	 	44	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 8 DISCHARGE OF INDENTURE	 	 	44	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 8.01	 	Discharge of Liability on Debentures	 	 	44	 

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	 	 	 	 	 	 	Page	 
	 
	 
	 	SECTION 8.02	 	Application of Trust Money	 	 	44	 
	 
	 	SECTION 8.03	 	Repayment to Company	 	 	44	 
	 
	 	SECTION 8.04	 	Reinstatement	 	 	45	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 9 AMENDMENTS	 	 	45	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 9.01	 	Without Consent of Debentureholders	 	 	45	 
	 
	 	SECTION 9.02	 	With Consent of Debentureholders	 	 	46	 
	 
	 	SECTION 9.03	 	Compliance with Trust Indenture Act	 	 	47	 
	 
	 	SECTION 9.04	 	Revocation and Effect of Consents and Waivers	 	 	47	 
	 
	 	SECTION 9.05	 	Notation on or Exchange of Debentures	 	 	48	 
	 
	 	SECTION 9.06	 	Trustee to Sign Amendments	 	 	48	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 10 CONVERSION OF DEBENTURES	 	 	48	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 10.01	 	Right to Convert	 	 	48	 
	 
	 	SECTION 10.02	 	Exercise of Conversion Right; Issuance of Common Stock on Conversion; No Adjustment for Interest or Dividends	 	 	51	 
	 
	 	SECTION 10.03	 	Cash Payments in Lieu of Fractional Shares	 	 	53	 
	 
	 	SECTION 10.04	 	Conversion Rate	 	 	53	 
	 
	 	SECTION 10.05	 	Adjustment of Conversion Rate	 	 	54	 
	 
	 	SECTION 10.06	 	Effect of Reclassification, Consolidation, Merger or Sale	 	 	62	 
	 
	 	SECTION 10.07	 	Taxes on Shares Issued	 	 	64	 
	 
	 	SECTION 10.08	 	Reservation of Shares, Shares to be Fully Paid; Compliance with Governmental Requirements; Listing of Common Stock	 	 	64	 
	 
	 	SECTION 10.09	 	Responsibility of Trustee	 	 	65	 
	 
	 	SECTION 10.10	 	Notice to Holders Prior to Certain Actions	 	 	65	 
	 
	 	SECTION 10.11	 	Stockholder Rights Plans	 	 	66	 
	 
	 	SECTION 10.12	 	Settlement Upon Conversion	 	 	66	 
	 
	 	SECTION 10.13	 	Conversion After a Public Acquirer Change of Control	 	 	67	 
	 
	 	SECTION 10.14	 	Limitations on Foreign Ownership	 	 	68	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 11 MISCELLANEOUS	 	 	68	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 11.01	 	Trust Indenture Act Controls	 	 	68	 
	 
	 	SECTION 11.02	 	Notices	 	 	69	 
	 
	 	SECTION 11.03	 	Communication by Debentureholders with Other Debentureholders	 	 	69	 
	 
	 	SECTION 11.04	 	Certificate and Opinion as to Conditions Precedent	 	 	70	 
	 
	 	SECTION 11.05	 	Statements Required in Certificate or Opinion	 	 	70	 
	 
	 	SECTION 11.06	 	When Debentures Disregarded	 	 	70	 
	 
	 	SECTION 11.07	 	Rules by Trustee, Paying Agent and Registrar	 	 	71	 
	 
	 	SECTION 11.08	 	Legal Holidays	 	 	71	 
	 
	 	SECTION 11.09	 	Governing Law	 	 	71	 
	 
	 	SECTION 11.10	 	No Interpretation of or by Other Agreements	 	 	71	 
	 
	 	SECTION 11.11	 	Successors	 	 	71	 

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	 	 	 	 	 	 	Page	 
	 
	 
	 	SECTION 11.12	 	Multiple Originals	 	 	71	 
	 
	 	SECTION 11.13	 	Table of Contents; Headings	 	 	71	 
	 
	 	SECTION 11.14	 	Indenture and Debentures Solely Corporate Obligations	 	 	71	 
	 
	 	SECTION 11.15	 	Severability	 	 	72	 
	 
	 	SECTION 11.16	 	Benefits of Indenture	 	 	72	 
	 
	 	SECTION 11.17	 	Calculations	 	 	72	 

Exhibit A — Form of Debenture

Exhibit B — Form of Restrictive Legend for Common Stock Issued Upon Conversion

iv

 

     INDENTURE dated as of February 7, 2007, between TRICO MARINE SERVICES, INC., a Delaware
corporation (the “Company”), and Wells Fargo Bank, National Association, as trustee (the
“Trustee”).

     WHEREAS, the Company has duly authorized the creation of an issue of its 3.00% Senior
Convertible Debentures due 2027 (the “Debentures”), having the terms, tenor, amount and other
provisions hereinafter set forth, and, to provide therefor, the Company has duly authorized the
execution and delivery of this Indenture; and

     WHEREAS, all things necessary to make the Debentures, when the Debentures are duly executed by
the Company and authenticated and delivered hereunder and duly issued by the Company, the valid
obligations of the Company, and to make this Indenture a valid and binding agreement of the
Company, in accordance with its terms, have been done and performed, and the execution of this
Indenture and the issue hereunder of the Debentures have in all respects been duly authorized,

     NOW, THEREFORE, THIS INDENTURE WITNESSETH: For and in consideration of the premises and the
purchase of the Debentures by the Holders thereof, it is mutually covenanted and agreed, for the
equal and proportionate benefit of all Holders of the Debentures, as follows:

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

     SECTION 1.01 Definitions.

     “Additional Debentures” has the meaning specified in Section 2.14.

     “Additional Debentures Board Resolutions” means resolutions duly adopted by the Board of
Directors of the Company and delivered to the Trustee in an Officers’ Certificate providing for the
issuance of Additional Debentures.

     “Additional Interest” has the meaning specified for Additional Interest in Section 3(a) of the
Registration Rights Agreement and Section 6.13 hereof.

     “Additional Interest Notice” has the meaning specified in Section 4.09.

     “Additional Shares” has the meaning specified in Section 10.04(b).

     “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 the purposes of this definition, “control” when used with respect to any Person means the power
to direct the management and policies of such Person, directly or indirectly, whether through the
ownership of voting securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing.

     “Agent Members” has the meaning specified in Section 2.08(b).

1

 

     “Applicable Consideration” has the meaning specified in Section 10.06.

     “Bankruptcy Law” has the meaning specified in Section 6.01.

     “Board of Directors” means the Board of Directors of the Company or, other than in the case of
the definition of “Continuing Directors,” any committee thereof duly authorized to act on behalf of
such Board.

     “Business Day” means each day which is not a Legal Holiday.

     “Capital Stock” of any Person means any and all shares, participations or other interests in
(however designated) equity of such Person, excluding any debt securities convertible into such
equity.

     “Closing Date” means February 7, 2007, the date as of which this Indenture was originally
executed and delivered.

     “Closing Sale Price” of any share of Common Stock or any other security on any Trading Day
means the closing sale price of such security (or, if no closing sale price is reported, the
average of the closing bid and ask prices or, if more than one in either case, the average of the
average closing bid and the average closing ask prices) on such date as reported in composite
transactions for the principal U.S. securities exchange on which such security is traded or, if
such security is not listed on a U.S. national or regional securities exchange, as reported by Pink
Sheets LLC. In the absence of such a quotation, the Closing Sale Price shall be determined by a
nationally recognized securities dealer retained by the Company to make such determination. The
Closing Sale Price shall be determined without reference to extended or after hours trading.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Common Stock” means any stock of any class of the Company 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 Company and which is not subject to redemption by the Company.
Subject to the provisions of Sections 10.06 and 10.13, however, shares issuable on conversion of
Debentures shall include only shares of the class designated as common stock of the Company at the
Closing Date (namely, the Common Stock, par value $0.01) or shares of any class or classes
resulting from any reclassification or reclassifications thereof and which have 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 Company and which are not subject to redemption by
the Company; provided that if at any time there shall be more than one such resulting class, the
shares of each such class then so issuable on conversion shall be substantially in the proportion
which 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 party named as such in this Indenture until a successor replaces it and,
thereafter, means the successor.

     “Company Order” has the meaning specified in Section 2.04.

2

 

     “Company Repurchase Notice” has the meaning specified in Section 3.06.

     “Continuing Directors” means, as of any date of determination, any member of the Board of
Directors who (i) was a member of the Board of Directors on the Closing Date; or (ii) 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 new director’s nomination
or election.

     “Conversion Date” has the meaning specified in Section 10.02.

     “Conversion Notice” has the meaning specified in Section 10.02.

     “Conversion Price” on any date of determination means $1,000 divided by the Conversion Rate as
of such date.

     “Conversion Rate” means initially 23.0216, subject to adjustment as set forth herein. The
“Conversion Rate” constitutes the number of shares of Common Stock (or the Applicable Consideration
or Public Acquirer Common Stock upon which the Conversion Settlement Amount receivable upon
conversion of the Debentures is then based in accordance with Section 10.06 or 10.13) upon which
the Conversion Settlement Amount for each $1,000 principal amount of Debentures is based from time
to time.

     “Conversion Settlement Amount” has the meaning specified in Section 10.12.

     “Conversion Settlement Averaging Period” means, with respect to any Debenture delivered for
conversion, the 20 consecutive Trading-Day period beginning on (and including):

(a) if the Company has issued pursuant to Article III a notice of redemption in respect of
such Debenture, the 23rd scheduled Trading Day immediately preceding the redemption date;

(b) if the conversion notice in respect of such Debenture is received during the period
beginning 25 Trading Days preceding the Maturity Date and ending the Trading Day preceding
the Maturity Date, the 23rd scheduled Trading Day immediately preceding the Maturity Date;

(c) if such Debenture is converted in connection with a Fundamental Change, the 23rd
scheduled Trading Day immediately preceding the related Fundamental Change Repurchase Date;
and

(d) in all other cases, the third Trading Day following the receipt by the Company of the
conversion notice in respect of such Debenture.

     “Corporate Trust Office” or other similar term, means the designated office of the Trustee at
which at any particular time its corporate trust business as it relates to this Indenture shall be
administered, which office is, at the Closing Date, located at 1445 Ross Avenue, 2nd
Floor, Dallas, Texas 75202-2812 or at any other time at such other address as the Trustee may
designate from time to time by notice to the Company.

3

 

     “Current Market Price” has the meaning specified in Section 10.05(g)(i).

     “Custodian” has the meaning specified in Section 6.01.

     “Daily Conversion Value” has the meaning specified in Section 10.12.

     “Daily Settlement Amount” has the meaning specified in Section 10.12.

     “Debentureholder” or “Holder” means the Person in whose name a Debenture is registered on the
Registrar’s books.

     “Debentures” means any Debentures issued, authenticated and delivered under this Indenture,
including any Global Debentures and any Additional Debentures.

     “Default” means any event which is, or after notice or passage of time or both would be, an
Event of Default.

     “Depositary” means the clearing agency registered under the Exchange Act that is designated to
act as the Depositary for the Global Debentures. DTC shall be the initial Depositary, until a
successor shall have been appointed and become such pursuant to the applicable provisions of this
Indenture, and thereafter, “Depositary” shall mean or include such successor.

     “Depositary Entity” has the meaning specified in Section 9.04.

     “Determination Date” has the meaning specified in Section 10.05(k).

     “Distributed Assets” has the meaning specified in Section 10.05(d).

     “Distribution Notice” has the meaning specified in Section 10.01(c).

     “DTC” means The Depository Trust Company.

     “Effective Date” has the meaning specified in Section 10.04(b).

     “Event of Default” has the meaning specified in Section 6.01.

     “‘ex’ date” has the meaning specified in Section 10.05(g)(ii).

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

     “Fair Market Value” has the meaning specified in Section 10.05(g)(iii).

     “Fiscal Quarter” means, with respect to the Company, the fiscal quarter publicly disclosed by
the Company. The Company shall confirm the ending dates of its fiscal quarters for the current
fiscal year to the Trustee upon the Trustee’s request.

     “Fundamental Change” means the occurrence of any of the following after the Closing Date:

4

 

     (a) the consummation of any transaction that is disclosed in a Schedule 13D (or successor
form) by any “person” and the result of which is that such “person” has become the “beneficial
owner” (as these terms are defined in Rule 13d-3 and Rule 13d-5 under the Exchange Act), directly
or indirectly, of more than 50% of the Company’s Capital Stock that is at the time entitled to vote
by the holder thereof in the election of the Board of Directors (or comparable body); or

     (b) the first day on which a majority of the members of the Board of Directors are not
Continuing Directors; or

     (c) the adoption of a plan relating to the liquidation or dissolution of the Company; or

     (d) the consolidation or merger of the Company with or into any other Person, or the sale,
lease, transfer, conveyance or other disposition, in one or a series of related transactions, of
all or substantially all of the Company’s assets and those of its subsidiaries taken as a whole to
any “person” (as this term is used in Section 13(d)(3) of the Exchange Act), other than:

     (i) any transaction pursuant to which the holders of 50% or more of the total voting
power of all shares of the Company’s Capital Stock entitled to vote generally in elections
of directors of the Company immediately prior to such transaction have the right to
exercise, directly or indirectly, 50% or more of the total voting power of all shares of the
Company’s Capital Stock entitled to vote generally in elections of directors of the
continuing or surviving Person (or any parent thereof) immediately after giving effect to
such transaction; or

     (ii) any merger primarily for the purpose of changing the Company’s jurisdiction of
incorporation and resulting in a reclassification, conversion or
exchange of outstanding shares of Common Stock solely into shares of common stock of the surviving entity; or

     (e) the termination of trading of the Common Stock, which will be deemed to have occurred if
the Common Stock or other common equity interests into which the Debentures are convertible is
neither listed for trading on a United States national securities exchange nor approved for listing
on any United States system of automated dissemination of quotations of securities prices, and no
American Depositary Shares or similar instruments for such common equity interests are so listed or
approved for listing in the United States.

     However, a Fundamental Change will be deemed not to have occurred if more than 90% of the
consideration in the transaction or transactions (other than cash payments for fractional shares
and cash payments made in respect of dissenters’ appraisal rights) which otherwise would constitute
a Fundamental Change under clauses (a) or (d) above consists of shares of common stock, depositary
receipts or other certificates representing common equity interests traded or to be traded
immediately following such transaction on a U.S. national securities exchange or approved for
listing on any United States system on automated dissemination of quotations of securities prices,
and, as a result of the transaction or transactions, the Debentures become
convertible into such common stock, depositary receipts or other certificates representing
common equity interests.

5

 

     “Fundamental Change Repurchase Date” has the meaning specified in Section 3.04(a).

     “GAAP” means generally accepted accounting principles in the United States of America as in
effect on the Closing Date, including those set forth in (i) the opinions and pronouncements of the
Accounting Principles Board of the American Institute of Certified Public Accountants, (ii)
statements and pronouncements of the Financial Accounting Standards Board, (iii) such other
statements by such other entity as approved by a significant segment of the accounting profession,
and (iv) the rules and regulations of the SEC governing the inclusion of financial statements
(including pro forma financial statements) in periodic reports required to be filed pursuant to
Section 13 of the Exchange Act, including opinions and pronouncements in staff accounting bulletins
and similar written statements from the accounting staff of the SEC.

     “Global Debentures” has the meaning specified in Section 2.02.

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

     “Initial Purchasers” means each of Lehman Brothers Inc., Deutsche Bank Securities, Inc. and
Jefferies & Company Inc. (each, an “Initial Purchaser”).

     “interest” means, when used with reference to the Debentures, any interest payable under the
terms of the Debentures, including defaulted interest and Additional Interest, if any, payable
under the terms of the Registration Rights Agreement or Section 6.13 hereof.

     “Issue Date” means the date of initial issuance of Debentures pursuant to this Indenture.

     “Legal Holiday” has the meaning specified in Section 11.08.

     “Market Disruption Event” means (i) a failure by the primary United States national securities
exchange or market on which the Common Stock is listed, admitted to trading or quoted to open for
trading during its regular trading session or (ii) the occurrence or existence prior to 1:00 p.m.
(New York City time) on any Trading Day for the Common Stock for an aggregate one half hour period
of any suspension or limitation imposed on trading (by reason of movements in price exceeding
limits permitted by the stock exchange or otherwise) in the Common Stock or in any options
contracts or future contracts relating to the Common Stock.

     “Maturity Date” means January 15, 2027.

     “Non-Stock Change of Control” means a transaction described under clause (a) or clause (d) in
the definition of Fundamental Change pursuant to which 10% or more of the consideration for Common
Stock (other than cash payments for fractional shares, if applicable, and cash payments made in
respect of dissenters’ appraisal rights) in such transaction consists of cash or securities (or
other property) that are not shares of common stock, depositary receipts or other certificates
representing common equity interests traded or scheduled to be traded immediately following such
transaction on a U.S. national securities exchange.

     “Officer” means the Chairman of the Board, the Chief Executive Officer, the Chief Financial
Officer, the President, any Vice President, the Treasurer, any Assistant Treasurer, the Secretary
or any Assistant Secretary of the Company.

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     “Officers’ Certificate” means a certificate signed by two Officers. One of the officers
executing an Officers’ Certificate in accordance with Section 4.06 shall be the chief executive,
financial or accounting officer of the Company.

     “Opinion of Counsel” means a written opinion from legal counsel who is acceptable to the
Trustee. The counsel may be an employee of or counsel to the Company or the Trustee.

     “Paying Agent” has the meaning specified in Section 2.05.

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

     “PORTAL Market” means The PORTAL Market operated by the Nasdaq Stock Market or any successor
thereto.

     “principal” of a Debenture means the principal of the Debenture plus the premium, if any,
payable on the Debenture that is due or overdue or is to become due at the relevant time.

     “protected purchaser” has the meaning specified in Section 2.09.

     “Public Acquirer Change of Control” means a Non-Stock Change of Control in which the acquirer
has a class of common stock (or depositary receipts or shares in respect thereof) traded on a U.S.
national securities exchange or that shall be so traded or quoted when issued or exchanged in
connection with such Non-Stock Change of Control (the “Public Acquirer Common Stock”). If an
acquirer does not itself have a class of common stock (or depositary receipts or shares in respect
thereof) satisfying the foregoing requirement, it shall be deemed to have Public Acquirer Common
Stock (or depositary receipts or shares in respect thereof) if a corporation that directly or
indirectly owns at least a majority of the acquirer has a class of common stock (or depositary
receipts or shares in respect thereof) satisfying the foregoing requirement, provided that such
majority-owning corporation fully and unconditionally guarantees the Debentures, in which case all
references to Public Acquirer Common Stock shall refer to such class of common stock. Majority
owned for these purposes means having “beneficial ownership” (as defined in Rule 13d-3 under the
Exchange Act) of more than 50% of the total voting power of all shares of the respective entity’s
capital stock that are entitled to vote generally in the election of directors.

     “Public Acquirer Common Stock” has the meaning specified in the definition of Public Acquirer
Change of Control.

     “Purchase Agreement” means the Purchase Agreement, dated February 1, 2007, between the Company
and Lehman Brothers Inc., as representative for the Initial Purchasers relating to the offering and
sale of the Debentures.

     “Purchased Shares” has the meaning specified in Section 10.05(f).

     “Record Date” means, with respect to any interest payment date of the Debentures, the January
1 and July 1 preceding the applicable January 15 and July 15 interest payment date,

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respectively.
The “Record Date,” with respect to the Conversion Rate adjustment as provided in Section 10.05, has
the meaning specified in Section 10.05(g).

     “Register” has the meaning specified in Section 2.05.

     “Registrar” has the meaning specified in Section 2.05.

     “Registration Rights Agreement” means the Registration Rights Agreement, dated as of the
Closing Date, between the Company and Lehman Brothers Inc., as representative of the Initial
Purchasers, as amended from time to time in accordance with its terms.

     “Repurchase Date” has the meaning specified in Section 3.05(a).

     “Repurchase Notice” has the meaning specified in Section 3.04(c).

     “Restricted Securities” has the meaning specified in Section 2.08(c).

     “Rule 144A” means Rule 144A as promulgated under the Securities Act as it may be amended from
time to time hereafter.

     “SEC” means the Securities and Exchange Commission.

     “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder, as in effect from time to time.

     “Significant Subsidiary” means any Restricted Subsidiary that would be a “Significant
Subsidiary” of the Company within the meaning of Rule 1-02(w) under Regulation S-X promulgated by
the SEC.

     “Spin-Off” has the meaning specified in Section 10.05(d).

     “Spin-Off Valuation Period” has the meaning specified in Section 10.05(d).

     “Stock Price” has the meaning specified in Section 10.04(b).

     “Stated Maturity” means, with respect to any security, the date specified in such security as
the fixed date on which the final payment of principal of such security is due and payable,
including pursuant to any mandatory redemption provision (but excluding any provision providing for
the repurchase of such security at the option of the holder thereof upon the happening of any
contingency beyond the control of the issuer unless such contingency has occurred).

     “Subsidiary” of any Person means any corporation, association, partnership or other business
entity of which more than 50% of the total voting power of shares of Capital Stock or other
interests (including partnership interests) 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 (i) such Person, (ii) such Person and one or more
Subsidiaries of such Person or (iii) one or more Subsidiaries of such Person.

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     “TIA” or “Trust Indenture Act” means the Trust Indenture Act of 1939 (15 U.S.C. §§
77aaa-77bbbb), as amended, as in effect on the date of this Indenture.

     “Trading Day” has the meaning specified in Section 10.05(g)(v).

     “Trading Price” means, with respect to a Debenture on any date of determination, the average
of the secondary market bid quotations per $1,000 principal amount of Debentures obtained by the
Trustee for $5,000,000 principal amount of Debentures at approximately 3:30 p.m., New York City
time, on such determination date from two independent nationally recognized securities dealers
selected by the Company, which may include one or more of the Initial Purchasers; provided that if
two such bids cannot reasonably be obtained by the Trustee, but one such bid can be reasonably
obtained by the Trustee, then this one bid shall be used; and provided further that, if the Trustee
cannot reasonably obtain at least one bid for $5,000,000 principal amount of Debentures from a
nationally recognized securities dealer then, for the purpose of determining the convertibility of
the Debentures only, the Trading Price per $1,000 principal amount of Debentures shall be deemed to
be less than 98% of the product of (a) the Conversion Rate on such determination date and (b) the
Closing Sale Price of a share of Common Stock on such determination date.

     “Trigger Event” has the meaning specified in Section 10.05(d).

     “Trust Officer” means any officer within the Corporate Trust Office of the Trustee with direct
responsibility for the administration of this Indenture.

     “Trustee” means the party named as such in this Indenture until a successor replaces it and,
thereafter, means the successor.

     “Uniform Commercial Code” means the New York Uniform Commercial Code as in effect from time to
time.

     “Volume Weighted Average Price” on any Trading Day means (i) with respect to Common Stock, the
per share volume weighted average price as displayed under the heading “Bloomberg VWAP” on
Bloomberg Page TRMA<equity>AQR (or its equivalent successor if such page is not available) in
respect of the period from 9:30 a.m. to 4:00 p.m. (New York City time) on such Trading Day (or, if
such Volume Weighted Average Price is unavailable or such page or its equivalent is unavailable,
the volume weighted average price of each trade in the Company’s shares of Common Stock during such
Trading Day between 9:30 a.m. and 4:00 p.m., New York City time, on The Nasdaq Global Select Market
or, if the Company’s Common Stock is not traded on The Nasdaq Global Select Market, the principal
U.S. national or regional securities exchange on which the Company’s Common Stock is listed, as
calculated by a nationally recognized independent investment banking firm (which may be one of the
Initial Purchasers or its affiliates) retained for this purpose by the Company or (ii) with respect
to any Applicable Consideration or Public Acquirer Common Stock, the volume weighted average price
per unit of Applicable Consideration or share of Public Acquirer Common Stock, as applicable,
as determined in a manner substantially consistent with the manner in which the “Volume
Weighted Average Price” of a share of Common Stock is to be determined in accordance with clause
(i) as determined in good faith by the Company.

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     SECTION 1.02 Incorporation by Reference of Trust Indenture Act. This Indenture is subject
to the mandatory provisions of the TIA, which are incorporated by reference in and made a part of
this Indenture. The following TIA terms have the following meanings:

     “Commission” means the SEC.

     “indenture securities” means the Debentures.

     “indenture security holder” means a Debentureholder.

     “indenture to be qualified” means this Indenture.

     “indenture trustee” or “institutional trustee” means the Trustee.

     “obligor” on the indenture securities means the Company and any other obligor on the indenture
securities.

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

     SECTION 1.03 Rules of Construction. Unless the context otherwise requires:

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

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

     (3) “or” is not exclusive;

     (4) “including” means including without limitation; and

     (5) words in the singular include the plural and words in the plural include the singular.

ARTICLE 2

THE DEBENTURES

     SECTION 2.01 Designation, Amount and Issuance of Debentures. The Debentures shall be designated as “3.00% Senior Convertible Debentures due 2027”. The
Debentures initially will be issued in an aggregate principal amount not to exceed (i) $125,000,000
(or, if the Initial Purchasers’ option to purchase additional Debentures set forth in the Purchase
Agreement is exercised, such greater amount up to $150,000,000) plus (ii) such additional aggregate
principal amount of Debentures as may be issued from time to time as Additional Debentures in
accordance with such Section 2.14 (except pursuant to Sections 2.05, 2.06, 3.03, 3.05, 3.06 and
10.02 hereof). Debentures may be executed by the Company and delivered to the Trustee for
authentication as provided in Section 2.04.

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     SECTION 2.02 Form of the Debentures. The Debentures and the Trustee’s certificate of
authentication to be borne by such Debentures shall be substantially in the form set forth in
Exhibit A hereto. The terms and provisions contained in the form of Debentures attached as
Exhibit A hereto shall constitute, and are hereby expressly made, a part of this Indenture
and, to the extent applicable, 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.

     Any of the Debentures may have such letters, numbers or other marks of identification and such
notations, legends, endorsements or changes as the officers executing the same may approve
(execution thereof to be conclusive evidence of such approval) and as are not inconsistent with the
provisions of this Indenture, or as may be required by the custodian for the Global Debentures, the
Depositary or by the National Association of Securities Dealers, Inc. in order for the Debentures
to be tradable on the PORTAL Market or as may be required for the Debentures to be tradable on any
other market developed for trading of securities pursuant to Rule 144A or as may be required to
comply with any applicable law or with any rule or regulation made pursuant thereto or with any
rule or regulation of any securities exchange or automated quotation system on which the Debentures
may be listed, or to conform to usage, or to indicate any special limitations or restrictions to
which any particular Debentures are subject.

     So long as the Debentures are eligible for book-entry settlement with the Depositary, or
unless otherwise required by law, or otherwise contemplated by Section 2.08(b), all of the
Debentures will be represented by one or more Debentures in global form registered in the name of
the Depositary or the nominee of the Depositary (“Global Debentures”). The transfer and exchange of
beneficial interests in any such Global Debentures shall be effected through the Depositary in
accordance with the applicable procedures of the Depositary; and beneficial interests in the Global
Debentures shall be subject to all rules and procedures of the Depositary. Except as provided in
Section 2.08(b), beneficial owners of a Global Debenture shall not be entitled to have certificates
registered in their names, will not receive or be entitled to receive physical delivery of
certificates in definitive form and will not be considered Holders of such Global Debenture.

     Any Global Debentures shall represent such of the outstanding Debentures as shall be specified
therein and shall provide that it shall represent the aggregate amount of outstanding Debentures
from time to time endorsed thereon and that the aggregate amount of outstanding Debentures
represented thereby may from time to time be increased or reduced to reflect redemptions,
repurchases, conversions, transfers or exchanges permitted hereby. Any
endorsement of a Global Debenture to reflect the amount of any increase or decrease in the
amount of outstanding Debentures represented thereby shall be made by the Trustee or the custodian
for the Global Debenture, at the direction of the Trustee, in such manner and upon instructions
given by the Holder of such Debentures in accordance with this Indenture. Payment of principal of,
interest on and premium, if any, on any Global Debentures shall be made to the Depositary in
immediately available funds.

     SECTION 2.03 Date and Denomination of Debentures; Payment at Maturity; Payment of Interest.
The Debentures shall be issuable in registered form without coupons in denominations of $1,000
principal amount and integral multiples thereof. Each Debenture shall be dated the date of its
authentication and shall bear interest from the date specified in the form

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of Debentures attached
as Exhibit A hereto. Interest on the Debentures shall be computed on the basis of a 360-day
year comprised of twelve 30-day months.

     On the Maturity Date, each Holder shall be entitled to receive on such date $1,000 principal
amount per Debentures and accrued and unpaid interest to, but not including, the Maturity Date.
With respect to Global Debentures, such principal and interest will be paid to the Depositary in
immediately available funds. With respect to any certificated Debentures, such principal and
interest will be payable at the Company’s office or agency maintained for that purpose, which
initially will be the office or agency of the Trustee located at 1445 Ross Avenue, 2nd
Floor, Dallas, Texas 75202-2812.

     The Person in whose name any Debenture is registered on the Register at 5:00 p.m., New York
City time, on any Record Date with respect to any interest payment date shall be entitled to
receive the interest payable on such interest payment date, except that the interest payable upon
maturity will be payable to the Person to whom principal is payable upon maturity.

     The Company shall pay interest (i) on any Global Debentures by wire transfer of immediately
available funds to the account of the Depositary or its nominee, (ii) on any Debentures in
certificated form having a principal amount of less than $2,000,000, by check mailed to the address
of the Person entitled thereto as it appears in the Register, provided, however, that at maturity
interest will be payable at the office of the Company maintained by the Company for such purposes,
which shall initially be an office or agency of the Trustee and (iii) on any Debentures in
certificated form having a principal amount of $2,000,000 or more, by wire transfer in immediately
available funds at the election of the Holder of such Debentures duly delivered to the trustee at
least five Business Days prior to the relevant interest payment date, provided, however, that at
maturity interest will be payable at the office of the Company maintained by the Company for such
purposes, which shall initially be an office or agency of the Trustee. If a payment date is not a
Business Day, payment shall be made on the next succeeding Business Day, and no additional interest
shall accrue thereon.

     SECTION 2.04 Execution and Authentication. One or more Officers shall sign the Debentures
for the Company by manual or facsimile signature.

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

     A Debenture shall not be valid until an authorized signatory of the Trustee manually signs the
certificate of authentication on the Debenture. The signature shall be conclusive evidence that
the Debenture has been authenticated under this Indenture.

     The Trustee shall authenticate and make available for delivery Debentures for original issue,
upon receipt of a written order or orders of the Company signed by an Officer or by any Assistant
Treasurer of the Company or any Assistant Secretary of the Company (a “Company Order”): (i)
pursuant to the Purchase Agreement, in the aggregate principal amount of up to $150,000,000 and
(ii) from time to time, in such aggregate principal amount as shall be established for any
Additional Debentures established pursuant to the respective Officers’ Certificate in respect
thereof delivered pursuant to Section 2.14. The Company Order shall

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specify the amount of
Debentures to be authenticated and shall state the date on which such Debentures are to be
authenticated.

     The Trustee may appoint an authenticating agent reasonably acceptable to the Company to
authenticate the Debentures. Any such appointment shall be evidenced by an instrument signed by a
Trust Officer, a copy of which shall be furnished to the Company. Unless limited by the terms of
such appointment, an authenticating agent may authenticate Debentures 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 any Registrar, Paying Agent or agent for
service of notices and demands.

     SECTION 2.05 Registrar and Paying Agent. The Company shall maintain an office or agency
where Debentures may be presented for registration of transfer or for exchange (the “Registrar”)
and an office or agency where Debentures may be presented for payment (the “Paying Agent”). The
Corporate Trust Office shall be considered as one such office or agency of the Company for each of
the aforesaid purposes. The Registrar shall keep a register of the Debentures (the “Register”) and
of their transfer and exchange. The Company may have one or more co-registrars and one or more
additional paying agents. The term “Paying Agent” includes any additional paying agent, and the
term “Registrar” includes any co-registrars. The Company initially appoints the Trustee as (i)
Registrar and Paying Agent in connection with the Debentures, (ii) the custodian with respect to
the Global Debentures and (iii) conversion agent.

     The Company shall enter into an appropriate agency agreement with any Registrar or Paying
Agent not a party to this Indenture, which shall incorporate the terms of the TIA. The agreement
shall implement the provisions of this Indenture that relate to such agent. The Company shall
notify the Trustee of the name and address of any such agent. If the Company fails to maintain a
Registrar or Paying Agent, the Trustee shall act as such and shall be entitled to appropriate
compensation therefor pursuant to Section 7.07. The Company or any of its domestically organized
wholly owned Subsidiaries may act as Paying Agent or Registrar.

     The Company may remove any Registrar or Paying Agent upon written notice to such Registrar or
Paying Agent and to the Trustee; provided, however, that no such removal shall become effective
until (1) acceptance of an appointment by a successor as evidenced by an appropriate agreement
entered into by the Company and such successor Registrar or Paying Agent, as the case may be, and
delivered to the Trustee or (2) notification to the Trustee that the Trustee shall serve as
Registrar or Paying Agent until the appointment of a successor in accordance with clause (1) above.
The Registrar or Paying Agent may resign at any time upon written notice; provided, however, that
the Trustee may resign as Paying Agent or Registrar only if the Trustee also resigns as Trustee in
accordance with Section 7.08.

     SECTION 2.06 Paying Agent to Hold Money in Trust. Prior to each due date of the principal
and interest on any Debenture, the Company shall deposit with the Paying Agent (or if the Company
or a Subsidiary is acting as Paying Agent, segregate and hold in trust for the benefit of the
Persons entitled thereto) a sum sufficient to pay such principal and interest when so becoming due.
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 Debentureholders or the Trustee all money held
by the Paying Agent for the payment of principal of or interest on the

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Debentures and shall notify
the Trustee of any default by the Company in making any such payment. If the Company or a
Subsidiary of the Company acts as Paying Agent, it shall segregate the money held by it as Paying
Agent and hold it as a separate trust fund. The Company at any time may require a Paying Agent to
pay all money held by it to the Trustee and to account for any funds disbursed by the Paying Agent.
Upon complying with this Section, the Paying Agent shall have no further liability for the money
delivered to the Trustee.

     SECTION 2.07 Debentureholder 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
Debentureholders. If the Trustee is not the Registrar, the Company shall furnish, or cause the
Registrar to furnish, to the Trustee, in writing at least five 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
Debentureholders.

     SECTION 2.08 Exchange and Registration of Transfer of Debentures; Restrictions on Transfer.
(a) The Company shall cause to be kept at the Corporate Trust Office the Register in which, subject
to such reasonable regulations as it may prescribe, the Company shall provide for the registration
of Debentures and of transfers of Debentures. The Register shall be in written form or in any form
capable of being converted into written form within a reasonably prompt period of time.

     Upon surrender for registration of transfer of any Debentures to the Registrar or any
co-registrar, and satisfaction of the requirements for such transfer set forth in this Section
2.08, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Debentures of any authorized
denominations and of a like aggregate principal amount and bearing such restrictive legends as may
be required by this Indenture.

     Debentures may be exchanged for other Debentures of any authorized denominations and of a like
aggregate principal amount, upon surrender of the Debentures to be exchanged at any such office or
agency maintained by the Company pursuant to Section 4.02. Whenever any Debentures are so
surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and
deliver, the Debentures that the Holder making the exchange is entitled to receive bearing
registration numbers not contemporaneously outstanding.

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

     All Debentures presented or surrendered for registration of transfer or for exchange,
redemption, repurchase or conversion shall (if so required by the Company or the Registrar) be duly
endorsed, or be accompanied by a written instrument or instruments of transfer in form satisfactory
to the Company, and the Debentures shall be duly executed by the Holder thereof or his attorney
duly authorized in writing.

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     No service charge shall be made to any Holder for any registration of, transfer or
exchange of Debentures, but the Company or the Trustee may require payment by the Holder of a sum
sufficient to cover any tax, assessment or other governmental charge that may be imposed in
connection with any registration of transfer or exchange of Debentures.

     Neither the Company nor the Trustee nor any Registrar shall be required to exchange, issue or
register a transfer of (a) any Debentures for a period of fifteen calendar days next preceding date
of mailing of a notice of redemption, (b) any Debentures or portions thereof called for redemption
pursuant to Section 3.02, except for the unredeemed portion of any Debentures being redeemed in
part, (c) any Debentures or portions thereof surrendered for conversion pursuant to Article 10, (d)
any Debentures or portions thereof tendered for repurchase (and not withdrawn) pursuant to Section
3.04 or (e) any Debentures or portions thereof tendered for repurchase (and not withdrawn) pursuant
to Section 3.05.

     (b) The following provisions shall apply only to Global Debentures:

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

     (ii) Notwithstanding any other provision in this Indenture, no Global Debenture may be
exchanged in whole or in part for Debentures registered, and no transfer of a Global
Debenture in whole or in part may be registered, in the name of any Person other than the
Depositary or a nominee thereof unless

     (A) the Depositary (x) has notified the Company that it is unwilling or unable
to continue as Depositary for such Global Debenture or (y) has ceased to be a
clearing agency registered under the Exchange Act, and a successor depositary has
not been appointed by the Company within 90 calendar days, or

     (B) the Company, in its sole discretion, notifies the Trustee in writing that
it no longer wishes to have all the Debentures represented by Global Debentures.

Any Global Debentures exchanged pursuant to this Section 2.08(b)(ii) shall be so exchanged
in whole and not in part.

     (iii) In addition, certificated Debentures will be issued in exchange for beneficial
interests in a Global Debenture upon request by or on behalf of the Depositary in accordance
with customary procedures following the request of a beneficial owner seeking to enforce its
rights under the Debentures or this Indenture, including its rights following the occurrence
of an Event of Default.

     (iv) Debentures issued in exchange for a Global Debenture or any portion thereof
pursuant to clause (ii) or (iii) above shall be issued in definitive, fully registered form,
without interest coupons, shall have an aggregate principal amount equal to that of

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such Global Debentures or portion thereof to be so exchanged, shall be registered in
such names and be in such authorized denominations as the Depositary shall designate and
shall bear any legends required hereunder. Any Global Debentures to be exchanged shall be
surrendered by the Depositary to the Trustee, as Registrar, provided that pending completion
of the exchange of a Global Debenture, the Trustee acting as custodian for the Global
Debentures for the Depositary or its nominee with respect to such Global Debentures, shall
reduce the principal amount thereof, by an amount equal to the portion thereof to be so
exchanged, by means of an appropriate adjustment made on the records of the Trustee. Upon
any such surrender or adjustment, the Trustee shall authenticate and make available for
delivery the Debentures issuable on such exchange to or upon the written order of the
Depositary or an authorized representative thereof.

     (v) In the event of the occurrence of any of the events specified in clause (ii) above
or upon any request described in clause (iii) above, the Company will promptly make
available to the Trustee a sufficient supply of certificated Debentures in definitive, fully
registered form, without interest coupons.

     (vi) Neither any members of, or participants in, the Depositary (“Agent Members”) nor
any other Persons on whose behalf Agent Members may act shall have any rights under this
Indenture with respect to any Global Debentures registered in the name of the Depositary or
any nominee thereof, and the Depositary or such nominee, as the case may be, may be treated
by the Company, the Trustee and any agent of the Company or the Trustee as the absolute
owner and Holder of such Global Debentures for all purposes whatsoever. Notwithstanding the
foregoing, nothing herein shall prevent the Company, the Trustee or any agent of the Company
or the Trustee from giving effect to any written certification, proxy or other authorization
furnished by the Depositary or such nominee, as the case may be, or impair, as between the
Depositary, its Agent Members and any other Person on whose behalf an Agent Member may act,
the operation of customary practices of such Persons governing the exercise of the rights of
a Holder of any Debentures.

     (vii) At such time as all interests in a Global Debenture have been redeemed,
repurchased, converted, cancelled or exchanged for Debentures in certificated form, such
Global Debenture shall, upon receipt thereof, be canceled by the Trustee in accordance with
standing procedures and instructions existing between the Depositary and the custodian for
the Global Debenture. At any time prior to such cancellation, if any interest in a Global
Debenture is redeemed, repurchased, converted, cancelled or exchanged for Debentures in
certificated form, the principal amount of such Global Debenture shall, in accordance with
the standing procedures and instructions existing between the Depositary and the custodian
for the Global Debenture, be appropriately reduced, and an endorsement shall be made on such
Global Debenture, by the Trustee or the custodian for the Global Debenture, at the direction
of the Trustee, to reflect such reduction.

     (c) Every Debenture (and all securities issued in exchange therefor or in substitution
thereof) that bears or is required under this Section 2.08(c) to bear the legend set forth in this
Section 2.08(c) (together with any Common Stock issued upon conversion of the Debentures and
required to bear the legend set forth in Exhibit B, collectively, the “Restricted
Securities”) shall

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be subject to the restrictions on transfer set forth in this Section 2.08(c) (including those
set forth in the legend below and the legend set forth in Exhibit B) unless such
restrictions on transfer shall be waived by written consent of the Company following receipt of
legal advice supporting the permissibility of the waiver of such transfer restrictions, and the
holder of each such Restricted Security, by such holder’s acceptance thereof, agrees to be bound by
all such restrictions on transfer. As used in this Section 2.08(c), the term “transfer” means any
sale, pledge, loan, transfer or other disposition whatsoever of any Restricted Security or any
interest therein.

     Until the expiration of the holding period applicable to sales of Restricted Securities under
Rule 144(k) under the Securities Act (or any successor provision), any certificate evidencing a
Restricted Security shall bear a legend in substantially the following form (or as set forth in
Exhibit B, in the case of Common Stock issued upon conversion of the Debentures), unless
such Restricted Security has 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 under the Securities Act or any similar provision then in
force, or unless otherwise agreed by the Company in writing as set forth above, with written notice
thereof to the Trustee:

     THE SECURITY EVIDENCED BY THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT OF 1933”), OR ANY STATE SECURITIES LAWS, AND
MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ACQUISITION
HEREOF OR A BENEFICIAL INTEREST HEREIN, THE HOLDER:

     (1) REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT OF 1933;

     (2) AGREES THAT IT WILL NOT PRIOR TO THE DATE TWO YEARS AFTER THE DATE OF ORIGINAL
ISSUANCE OF THE 3.00% SENIOR CONVERTIBLE DEBENTURES DUE 2027 OF TRICO MARINE SERVICES, INC.
(THE “COMPANY”) RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY OR THE COMMON
STOCK THAT MAY BE ISSUABLE UPON CONVERSION OF SUCH SECURITY EXCEPT (A) TO THE COMPANY OR ANY
SUBSIDIARY THEREOF, (B) TO A PERSON IT REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL
BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT OF 1933, (C) PURSUANT TO A
REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT OF 1933
AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER, OR (D) PURSUANT TO ANY
OTHER EXEMPTION FROM REGISTRATION REQUIREMENTS UNDER THE SECURITIES ACT OF 1933, INCLUDING
UNDER RULE 144 , IF AVAILABLE, SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY
SUCH TRANSFER, TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATIONS AND/OR OTHER
INFORMATION SATISFACTORY TO THE COMPANY AND THE TRUSTEE; AND

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     (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THE SECURITY EVIDENCED HEREBY IS
TRANSFERRED (OTHER THAN A TRANSFER PURSUANT TO CLAUSE 2(A) AND 2(C) ABOVE) A NOTICE
SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.

     In connection with any transfer of the Debentures prior to the date two years after the last
date of original issuance of the Debentures (other than a transfer pursuant to clause 2(C) above),
the Holder must complete and deliver the transfer certificate contained in this Indenture to the
Trustee (or any successor Trustee, as applicable). If the proposed transfer is pursuant to clause
2(D) above, the Holder must, prior to such transfer, furnish to the Trustee (or any successor
Trustee, as applicable), such certifications, legal opinions or other information as the Company
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. The legend
set forth above will be removed upon the earlier of the transfer of the Debentures evidenced
thereby pursuant to clause 2(C) above or the expiration of two years from the last date of original
issuance of the Debentures.

     Any Debentures that are Restricted Securities and as to which such restrictions on transfer
shall have expired in accordance with their terms or as to conditions for removal of the foregoing
legend set forth therein have been satisfied may, upon surrender of such Debentures for exchange to
the Registrar in accordance with the provisions of this Section 2.08, be exchanged for a new
Debenture or Debentures, of like tenor and aggregate principal amount, which shall not bear the
restrictive legend required by this Section 2.08(c). If such Restricted Security surrendered for
exchange is represented by a Global Debenture bearing the legend set forth in this Section 2.08(c),
the principal amount of the legended Global Debentures shall be reduced by the appropriate
principal amount and the principal amount of a Global Debenture without the legend set forth in
this Section 2.08(c) shall be increased by an equal principal amount. If a Global Debenture without
the legend set forth in this Section 2.08(c) is not then outstanding, the Company shall execute and
the Trustee shall authenticate and deliver an unlegended Global Debentures to the Depositary.

     In the event Rule 144(k) as promulgated under the Securities Act is amended to change the
two-year period under Rule 144(k), then, the references in the restrictive legend set forth above
to “two years,” and in the corresponding transfer restrictions described above included in this
Indenture and the Debentures and with respect to shares of the Common Stock will be deemed to refer
to such changed period, from and after receipt by the Trustee of an Officers’ Certificate and
Opinion of Counsel evidencing such changes. However, such changes will not be made if they are
otherwise prohibited by, or would otherwise cause a violation of, the federal securities laws
applicable at the time. As soon as practicable after the Company knows of the effectiveness of any
such amendment to change the two-year period under Rule 144(k), unless such changes would otherwise
be prohibited by, or would otherwise cause a violation of, the federal securities laws applicable
at the time, the Company will provide to the Trustee an Officers’ Certificate and Opinion of
Counsel evidencing such changes as to the effectiveness of such amendment and the effectiveness of
such change to the restrictive legends and transfer restrictions.

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     (d) Any Restricted Securities, prior to the expiration of the holding period applicable to
sales thereof under Rule 144(k) under the Securities Act (or any successor provision), purchased or
owned by the Company or any Affiliate thereof may not be resold by the Company or such Affiliate
unless registered under the Securities Act or resold pursuant to an exemption from the registration
requirements of the Securities Act in a transaction which results in such Debentures or Common
Stock, as the case may be, no longer being “restricted securities” (as defined under Rule 144).

     (e) The Trustee shall have no responsibility or obligation to any Agent Members or any other
Person with respect to the accuracy of the books or records, or the acts or omissions, of the
Depositary or its nominee or of any participant or member thereof, with respect to any ownership
interest in the Debentures or with respect to the delivery to any Agent Member or other Person
(other than the Depositary) of any notice (including any notice of redemption) or the payment of
any amount, under or with respect to such Debentures. All notices and communications to be given
to the Holders of Debentures and all payments to be made to Holders of Debentures under the
Debentures shall be given or made only to or upon the order of the registered Holders of Debentures
(which shall be the Depositary or its nominee in the case of a Global Debenture). The rights of
beneficial owners in any Global Debentures shall be exercised only through the Depositary subject
to the customary procedures of the Depositary. The Trustee may rely and shall be fully protected
in relying upon information furnished by the Depositary with respect to its Agent Members.

     The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance
with any restrictions on transfer imposed under this Indenture or under applicable law with respect
to any transfer of any interest in any Debentures (including any transfers between or among Agent
Members) other than to require delivery of such certificates and other documentation or evidence as
are expressly required by, and to do so if and when expressly required by, the terms of this
Indenture, and to examine the same to determine substantial compliance as to form with the express
requirements hereof.

     SECTION 2.09 Replacement Debentures
.. If a mutilated Debenture is surrendered to the Registrar or if the Debentureholder of a Debenture
claims that the Debenture has been lost, destroyed or wrongfully taken, the Company shall issue and
the Trustee shall authenticate a replacement Debenture if the requirements of Section 8-405 of the
Uniform Commercial Code are met, such that the Debentureholder (i) satisfies the Company and the
Trustee within a reasonable time after he has notice of such loss, destruction or wrongful taking
and the Registrar does not register a transfer prior to receiving such notification, (ii) makes
such request to the Company and the Trustee prior to the Debenture being acquired by a protected
purchaser as defined in Section 8-303 of the Uniform Commercial Code (a “protected purchaser”) and
(iii) satisfies any other reasonable requirements of the Trustee and the Company. If required by
the Trustee or the Company, such Debentureholder shall furnish an indemnity bond sufficient in the
judgment of the Trustee to protect the Company, the Trustee, the Paying Agent and the Registrar
from any loss that any of them may suffer if a Debenture is replaced. The Company and the Trustee
may charge the Debentureholder for their expenses in replacing a Debenture. In case any Debenture
which has matured or is about to mature or has been called for redemption or has been properly
tendered for repurchase on a
Fundamental Change Repurchase Date (and not withdrawn) or has been tendered for repurchase on a
Repurchase Date (and not withdrawn), as

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the case may be, or is to be converted into Common Stock,
shall become mutilated or be destroyed, lost or wrongfully taken, the Company may, instead of
issuing a substitute Debenture, pay or authorize the payment of or convert or authorize the
conversion of the same (without surrender thereof except in the case of a mutilated Debenture), as
the case may be, if the applicant for such payment or conversion shall furnish to the Company, to
the Trustee and, if applicable, to such authenticating agent such security or indemnity as may be
required by them to save each of them harmless for any loss, liability, cost or expense caused by
or in connection with such substitution, and, in every case of destruction, loss or wrongful
taking, the applicant shall also furnish to the Company, the Trustee and, if applicable, any Paying
Agent or conversion agent evidence to their satisfaction of the destruction, loss or wrongful
taking of such Debentures and of the ownership thereof.

     Every replacement Debenture is an additional obligation of the Company.

     The provisions of this Section 2.09 are exclusive and shall preclude (to the extent lawful)
all other rights and remedies with respect to the replacement or payment of mutilated, lost,
destroyed or wrongfully taken Debentures.

     SECTION 2.10 Outstanding Debentures
.. Debentures outstanding at any time are all Debentures authenticated by the Trustee except for
those canceled by it, those delivered to it for cancellation and those described in this Section as
not outstanding. A Debenture does not cease to be outstanding because the Company or an Affiliate
of the Company holds the Debenture.

     If a Debenture is replaced pursuant to Section 2.09, it ceases to be outstanding unless the
Trustee and the Company receive proof satisfactory to them that the replaced Debenture is held by a
protected purchaser.

     If the Paying Agent segregates and holds in trust, in accordance with this Indenture, on a
redemption date, repurchase date or Maturity Date money sufficient to pay all principal and
interest payable on that date with respect to the Debentures (or portions thereof) to be redeemed,
repurchased or maturing, as the case may be, and the Paying Agent is not prohibited from paying
such money to the Debentureholders on that date pursuant to the terms of this Indenture, then on
and after that date such Debentures (or portions thereof) cease to be outstanding and interest on
them ceases to accrue.

     SECTION 2.11 Temporary Debentures
.. Pending the preparation of Debentures in certificated form, the Company may execute and the
Trustee or an authenticating agent appointed by the Trustee shall, upon the written request of the
Company, authenticate and deliver temporary Debentures (printed or lithographed). Temporary
Debentures shall be issuable in any authorized denomination, and substantially in the form of the
Debentures in certificated form, but with such omissions, insertions and variations as may be
appropriate for temporary Debentures, all as may be determined by the Company. Every such temporary
Debentures shall be executed by the Company and authenticated by the Trustee or such authenticating
agent upon the same conditions and in substantially the same manner, and
with the same effect, as the Debentures in certificated form. Without unreasonable delay, the
Company will execute and deliver to the Trustee or such authenticating agent Debentures in
certificated form and thereupon

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any or all temporary Debentures may be surrendered in exchange
therefor, at each office or agency maintained by the Company pursuant to Section 4.02 and the
Trustee or such authenticating agent shall authenticate and make available for delivery in exchange
for such temporary Debentures an equal aggregate principal amount of Debentures in certificated
form. Such exchange shall be made by the Company at its own expense and without any charge
therefor. Until so exchanged, the temporary Debentures shall in all respects be entitled to the
same benefits and subject to the same limitations under this Indenture as Debentures in
certificated form authenticated and delivered hereunder.

     SECTION 2.12 Cancellation. The Company at any time may deliver Debentures to the Trustee for cancellation. The Registrar and
the Paying Agent shall forward to the Trustee any Debentures surrendered to them for registration
of transfer, exchange or payment. The Trustee and no one else shall cancel all Debentures
surrendered for registration of transfer, exchange, payment or cancellation and dispose of such
canceled Debentures in accordance with its customary procedures or deliver canceled Debentures to
the Company. The Company may not issue new Debentures to replace Debentures it has redeemed, paid
or delivered to the Trustee for cancellation. The Trustee shall not authenticate Debentures in
place of canceled Debentures other than pursuant to the terms of this Indenture.

     SECTION 2.13 CUSIP and ISIN Numbers. The Company in issuing the Debentures may use “CUSIP” and “ISIN” numbers (if then generally in
use) and, if so, the Trustee shall use “CUSIP” and “ISIN” numbers in notices of redemption as a
convenience to Debentureholders; provided, however, that any such notice may state that no
representation is made as to the correctness of such numbers either as printed on the Debentures or
as contained in any notice of a redemption and that reliance may be placed only on the other
identification numbers printed on the Debentures, and any such redemption shall not be affected by
any defect in or omission of such numbers. The Company shall promptly notify the Trustee in writing
of any changes to the CUSIP and ISIN numbers.

SECTION 2.14 Additional Debentures. The Company may, from time to time, subject to compliance with any other applicable provisions of
this Indenture, without the consent of the Debentureholders, create and issue pursuant to this
Indenture additional Debentures (“Additional Debentures”) having terms and conditions set forth in
Exhibit A identical to those of the other outstanding Debentures, except that Additional
Debentures may:

     (1) have a different issue price than other outstanding Debentures;

     (2) have a different Issue Date from the Issue Date for other outstanding Debentures;

     (3) have a different amount of interest payable on the first interest payment date after
issuance than is payable on other outstanding Debentures;

     (4) have terms specified in the Additional Debentures Board Resolutions for such Additional
Debentures making appropriate adjustments to this Article 2 and Exhibit A (and related
definitions) applicable to such Additional Debentures in order to conform to and ensure compliance
with the Securities Act (or other applicable securities laws) and any registration rights or
similar agreement applicable to such Additional Debentures, which are not adverse in

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any material
respect to the Holder of any outstanding Debentures (other than such Additional Debentures); and

     (5) be entitled to additional interest or other liquidated damages specified in a registration
rights agreement not applicable to other outstanding Debentures and not be entitled to such
additional interest or other liquidated damages applicable to other outstanding Debentures;

provided, that no adjustment pursuant to this Section 2.14 shall cause such Additional Debentures
to constitute, as determined pursuant to an Opinion of Counsel, a different class of securities
than the Debentures issued pursuant to the Purchase Agreement for U.S. federal income tax purposes;
and provided further, that the Additional Debentures have the same CUSIP number as other
outstanding Debentures. No Additional Debentures may be issued if on the Issue Date therefor any
Event of Default has occurred and is continuing.

The Debentures originally issued pursuant to the Purchase Agreement and any Additional Debentures
shall be treated as a single class for all purposes under this Indenture, including waivers,
amendments, redemptions, offers to purchase and United States federal tax purposes.

     With respect to any issuance of Additional Debentures, the Company shall deliver to the
Trustee a resolution of the Board of Directors and an Officers’ Certificate in respect of such
Additional Debentures, which shall together provide the following information:

     (1) the aggregate principal amount of such Additional Debentures to be authenticated
and delivered pursuant to this Indenture;

     (2) the Issue Date, issue price, pre-issuance accrued interest, amount of interest
payable on the first interest payment date, first interest payment date, CUSIP number and
corresponding ISIN of such Additional Debentures; and

     (3) such matters as shall be applicable to such Additional Debentures as described in
clauses (4) and (5) of the preceding paragraph

ARTICLE 3

REDEMPTION AND REPURCHASE OF DEBENTURES

SECTION 3.01 Optional Redemption of Debentures. At any time on or after January 15, 2012, the Debentures may be redeemed at the option of the
Company, in whole or in part from time to time, upon notice as set forth in Section 3.02, in cash
at the redemption price set forth below. In addition, the Company will pay interest on the
Debentures being redeemed, which interest will include such interest accrued and unpaid to, but
excluding, the redemption date; provided, that if the redemption date is after a Record Date and on
or prior to the corresponding interest payment date, the interest will be paid on the redemption
date to the holder of record on the Record Date. The Company may not redeem any Debentures if a
Default in the payment of interest on the Debentures has occurred and is continuing.

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     The redemption price for the Debentures, expressed as a percentage of principal amount, is as
follows for the periods set forth below:

	 	 	 	 	 
	 	 	Redemption
	Period	 	Price
	January 15, 2012 through January 14, 2013
	 	 	100.8571	%
	January 15, 2013 through January 14, 2014
	 	 	100.4286	%
	After January 14, 2014
	 	 	100.0000	%

     SECTION 3.02 Notice of Optional Redemption; Selection of Debentures to be Redeemed
.. In case the Company shall desire to exercise the right to redeem all or, as the case may be, any
part of the Debentures pursuant to Section 3.01, it shall fix a date for redemption and it or, at
its written request received by the Trustee not fewer than five Business Days prior (or such
shorter period of time as may be acceptable to the Trustee) to the date the notice of redemption is
to be mailed, the Trustee in the name of and at the expense of the Company, shall mail or cause to
be mailed a notice of such redemption not fewer than 30 calendar days nor more than 60 calendar
days prior to the redemption date to each Holder of Debentures so to be redeemed in whole or in
part at its last address as the same appears on the Register; provided that if the Company makes
such request of the Trustee, it shall, together with such request, also give written notice of the
redemption date to the Trustee, provided that the text of the notice shall be prepared by the
Company. Such mailing shall be by first class mail. The notice, if mailed in the manner herein
provided, shall be conclusively presumed to have been duly given, whether or not the Holder
receives such notice. In any case, failure to give such notice by mail or any defect in the notice
to the Holder of any Debentures designated for redemption as a whole or in part shall not affect
the validity of the proceedings for the redemption of any other Debentures.

     Each such notice of redemption shall specify: (i) the aggregate principal amount of Debentures
to be redeemed, (ii) the CUSIP number or numbers of the Debentures being redeemed, (iii) the date
fixed for redemption (which shall be a Business Day), (iv) the redemption price at which Debentures
are to be redeemed, (v) the place or places of payment and that payment will be made upon
presentation and surrender of such Debentures, (iv) that interest accrued and unpaid to, but
excluding, the date fixed for redemption will be paid as specified in said notice, and that on and
after said date interest thereon or on the portion thereof to be redeemed will cease to accrue,
(vii) that the Holder has a right to convert the Debentures called for redemption, (viii) the
Conversion Rate on the date of such notice, (ix) the time and date on which the right to convert
such Debentures or portions thereof will expire, and (x) the date on which the Conversion
Settlement Averaging Period begins. If fewer than all the Debentures are
to be redeemed, the notice of redemption shall identify the Debentures to be redeemed
(including CUSIP numbers, if any). In case any Debentures are to be redeemed in part only, the
notice of redemption shall state the portion of the principal amount thereof to be redeemed and
shall state that, on and after the redemption date, upon surrender of such Debentures, a new
Debentures or Debentures in principal amount equal to the unredeemed portion thereof will be
issued.

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     Whenever any Debentures are to be redeemed, the Company will give the Trustee written notice
of the redemption date, together with an Officers’ Certificate as to the aggregate principal amount
of Debentures to be redeemed not fewer than 35 calendar days (or such shorter period of time as may
be acceptable to the Trustee) prior to the redemption date.

     On or prior to the redemption date specified in the notice of redemption given as provided in
this Section 3.02, the Company will deposit with the Paying Agent (or, if the Company is acting as
its own Paying Agent, set aside, segregate and hold in trust as provided in Section 2.06) an amount
of money in immediately available funds sufficient to redeem on the redemption date all the
Debentures (or portions thereof) so called for redemption (other than those theretofore surrendered
for conversion) at the appropriate redemption price, together with accrued and unpaid interest to,
but excluding, the redemption date; provided that if such payment is made on the redemption date,
it must be received by the Paying Agent, by 11:00 a.m., New York City time, on such date. If any
Debentures called for redemption are converted pursuant hereto prior to such redemption date, any
money deposited with the Paying Agent or so segregated and held in trust for the redemption of such
Debentures shall be paid to the Company or, if then held by the Company, shall be discharged from
such trust.

     If less than all of the outstanding Debentures are to be redeemed, the Trustee shall select
the Debentures or portions thereof of the Global Debentures or the Debenture in certificated form
to be redeemed (in principal amounts of $1,000 or multiples thereof) by lot, on a pro rata basis or
by another method the Trustee deems fair and appropriate. If any Debenture selected for redemption
is submitted for conversion in part after such selection, the portion of such Debenture submitted
for conversion shall be deemed (so far as may be possible) to be the portion to be selected for
redemption. The Debentures (or portions thereof) so selected for redemption shall be deemed duly
selected for redemption for all purposes hereof, notwithstanding that any such Debentures are
submitted for conversion in part before the mailing of the notice of redemption.

     Upon any redemption of less than all of the outstanding Debentures, the Company and the
Trustee may (but need not), solely for purposes of determining the pro rata allocation among such
Debentures that are unconverted and outstanding at the time of redemption, treat as outstanding any
Debentures surrendered for conversion during the period of fifteen calendar days preceding the
mailing of a notice of redemption and may (but need not) treat as outstanding any Debentures
authenticated and delivered during such period in exchange for the unconverted portion of any
Debentures converted in part during such period.

     SECTION 3.03 Payment of Debentures Called for Redemption
.. If notice of redemption has been given as provided in Section 3.02, the Debentures or portion of
Debentures with respect to which such notice has been given shall, unless converted pursuant to the
terms hereof, become due and payable on the date fixed for redemption and at the place or
places stated in such notice at the redemption price, plus interest accrued and unpaid to, but
excluding, the redemption date (unless the redemption date is after a Record Date and on or prior
to the corresponding interest payment date, in which event the interest will be paid on the
interest payment date to the holder of record on the Record Date), and, unless the Company shall
default in the payment of such Debentures at the redemption price, plus interest, if any, accrued
and unpaid to, but excluding, such date, interest on the Debentures or portion of Debentures so
called for redemption, interest shall cease to accrue on and after such date and, after 5:00 p.m.,
New

24

 

York City time, on the Business Day immediately preceding the redemption date (unless the
Company shall default in the payment of such Debentures at the redemption price, together with
interest accrued to such date), such Debentures shall cease to be convertible and, except as
provided in Section 2.06 and Section 8.02, to be entitled to any benefit or security under this
Indenture, and the Holders thereof shall have no right in respect of such Debentures except the
right to receive the redemption price thereof plus, if applicable, accrued and unpaid interest to,
but excluding, the redemption date. On presentation and surrender of such Debentures at a place of
payment in said notice specified, the said Debentures or the specified portions thereof shall be
paid and redeemed by the Company at the redemption price, together with interest accrued and unpaid
thereon to, but excluding, the redemption date; provided that if the applicable redemption date is
after the applicable Record Date and on or before an interest payment date, the interest payable on
such interest payment date shall be paid on such interest payment date to the Holders of record of
such Debentures on the applicable Record Date instead of the Holders surrendering such Debentures
for redemption on such date.

     Upon presentation of any Debentures redeemed in part only, the Company shall execute and the
Trustee shall authenticate and make available for delivery to the Holder thereof, at the expense of
the Company, a new Debenture or Debentures, of authorized denominations, in principal amount equal
to the unredeemed portion of the Debentures so presented.

     Notwithstanding the foregoing, the Trustee shall not redeem any Debentures or mail any notice
of redemption during the continuance of a Default in payment of interest on the Debentures. If any
Debentures called for redemption shall not be so paid upon surrender thereof for redemption on the
redemption date as provided in this Section 3.03, to the extent legally permissible, the redemption
price shall, until paid or duly provided for, bear interest from and including the redemption date
at the rate borne by the Debentures and such Debentures shall remain convertible into Common Stock
until the redemption price and interest shall have been paid or duly provided for.

     SECTION 3.04 Repurchase at Option of Holders Upon a Fundamental Change
.. (a) If there shall occur a Fundamental Change at any time prior to maturity of the Debentures,
then each Holder of Debentures shall have the right, at such Holder’s option, to require the
Company to repurchase all of such Holder’s Debentures, or any portion thereof that is a multiple of
$1,000 principal amount, on a date (the “Fundamental Change Repurchase Date”) specified by the
Company, that is not less than 20 calendar days nor more than 35 calendar days after the date of
the Company Repurchase Notice related to such Fundamental Change at a cash repurchase price equal
to 100% of the principal amount of the Debentures being repurchased, plus accrued and unpaid
interest to, but excluding, the Fundamental Change Repurchase Date, subject to the satisfaction by
the Holder of the requirements set forth in Section 3.04(c); provided
that if such Fundamental Change Repurchase Date falls after a Record Date and on or prior to the
corresponding interest payment date, then the interest payable on such interest payment date shall
be paid on such interest payment date to the Holders of record of the Debentures on the applicable
Record Date instead of the Holders surrendering the Debentures for repurchase on such date.

     (b) On or before the fifth Business Day after the occurrence of a Fundamental Change, the
Company shall mail or deliver or cause to be mailed or delivered to all Holders of

25

 

record of the
Debentures on the date of the Fundamental Change at their addresses shown in the Register (and to
beneficial owners of the Debentures as required by applicable law) a Company Repurchase Notice as
set forth in Section 3.06 with respect to such Fundamental Change. The Company shall also deliver a
copy of the Company Repurchase Notice to the Trustee and the Paying Agent at such time as it is
mailed to Holders of Debentures.

     No failure of the Company to give the foregoing notices and no defect therein shall limit the
repurchase rights of Holders of Debentures or affect the validity of the proceedings for the
repurchase of the Debentures pursuant to this Section 3.04.

     (c) For Debentures to be repurchased at the option of the Holder, the Holder must deliver to
the Paying Agent, prior to 5:00 p.m., New York City time, on the Fundamental Change Repurchase
Date, (i) a written notice of repurchase (the “Repurchase Notice”) in the form set forth on the
reverse of the Debentures duly completed (if the Debentures are certificated) or stating the
following (if the Debentures are represented by a Global Debenture): (A) the certificate number of
the Debentures which the Holder will deliver to be repurchased or compliance with the appropriate
Depositary procedures, (B) the portion of the principal amount of the Debentures which the Holder
will deliver to be repurchased, which portion must be in principal amounts of $1,000 or an integral
multiple of $1,000 and (C) that such Debentures shall be repurchased by the Company pursuant to the
terms and conditions specified in the Debentures and in this Indenture, together with (ii) such
Debentures duly endorsed for transfer (if the Debentures are certificated) or book-entry transfer
of such Debentures (if such Debentures are represented by a Global Debenture). The delivery of
such Debentures to the Paying Agent (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 3.04 only
if the Debentures so delivered to the Paying Agent shall conform in all respects to the description
thereof in the Repurchase Notice. All questions as to the validity, eligibility (including time of
receipt) and acceptance of any Debentures for repurchase shall be determined by the Company, whose
determination shall be final and binding absent manifest error.

     (d) The Company shall repurchase from the Holder thereof, pursuant to this Section 3.04, a
portion of a Debenture, if the principal amount of such portion is $1,000 or a whole multiple of
$1,000. Provisions of this Indenture that apply to the repurchase of all of a Debenture also apply
to the repurchase of such portion of such Debenture.

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

     Any repurchase by the Company contemplated pursuant to the provisions of this Section 3.04
shall be consummated by the delivery of the consideration to be received by the Holder promptly
following the later of the Fundamental Change Repurchase Date and the time of the book-entry
transfer or delivery of the Debentures.

     SECTION 3.05 Repurchase of Debentures by the Company at the Option of Holders
.. (a) Each Holder of Debentures shall have the right, at such Holder’s option, to require the
Company to repurchase all of such Holder’s Debentures, or any portion thereof that is a

26

 

multiple of
$1,000 principal amount, on January 15, 2014, January 15, 2017 and January 15, 2022 (each, a
“Repurchase Date”), at a repurchase price of 100% of the principal amount of the Debentures being
repurchased, plus accrued and unpaid interest to, but excluding, the Repurchase Date, provided that
if such Repurchase Date falls after a Record Date and on or prior to the corresponding interest
payment date, then the interest payable on such interest payment date shall be paid on such
interest payment date to the Holders of record of the Debentures on the applicable Record Date
instead of the Holders surrendering the Debentures for repurchase on such date.

     (b) On or before the twentieth Business Day prior to each Repurchase Date, the Company shall
mail or cause to be mailed to all Holders of record on such date (and to beneficial owners as
required by applicable law) at their addresses shown in the Register (and to beneficial owners as
required by applicable law) a Company Repurchase Notice as set forth in Section 3.06. The Company
shall also deliver a copy of the Company Repurchase Notice to the Trustee and the Paying Agent at
such time as it is mailed to Holders of Debentures.

     No failure of the Company to give the foregoing notices and no defect therein shall limit the
repurchase rights of Holders of Debentures or affect the validity of the proceedings for the
repurchase of the Debentures pursuant to this Section 3.05.

     (c) For Debentures to be so repurchased at the option of the Holder, the Holder must deliver
to the Paying Agent, at any time during the period beginning at 9:00 a.m., New York City time, on
the date that is 20 Business Days prior to the applicable Repurchase Date and ending at 5:00 p.m.,
New York City time, on the applicable Repurchase Date, (i) a Repurchase Notice in the form set
forth on the reverse of the Debentures duly completed (if the Debentures are certificated) or
stating the following (if the Debentures are represented by a Global Debenture): (A) the
certificate number of the Debentures which the Holder will deliver to be repurchased or compliance
with the appropriate Depositary procedures, (B) the portion of the principal amount of the
Debentures which the Holder will deliver to be repurchased, which portion must be in principal
amounts of $1,000 or an integral multiple of $1,000, and (C) that such Debentures shall be
repurchased by the Company pursuant to the terms and conditions specified in the Debentures and in
this Indenture, together with (ii) such Debentures duly endorsed for transfer (if the Debentures
are certificated) or book-entry transfer of such Debentures (if such Debentures are represented by
a Global Debenture). The delivery of such Debentures to the Paying Agent (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 3.05 only if the Debentures so delivered
to the Paying Agent shall conform in all respects to the description thereof in the Repurchase
Notice. All questions as to the validity, eligibility (including time of receipt) and acceptance
of any Debentures for repurchase shall be determined by the Company, whose determination shall be
final and binding absent manifest error.

     (d) The Company shall repurchase from the Holder thereof, pursuant to this Section 3.05, a
portion of a Debenture, if the principal amount of such portion is $1,000 or a whole multiple of
$1,000. Provisions of this Indenture that apply to the repurchase of all of a Debenture also apply
to the repurchase of such portion of such Debentures.

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

     Any repurchase by the Company contemplated pursuant to the provisions of this Section 3.05
shall be consummated by the delivery of the consideration to be received by the Holder promptly
following the later of the Repurchase Date and the time of the book-entry transfer or delivery of
the Debentures.

     SECTION 3.06 Company Repurchase Notice
.. In connection with any repurchase of Debentures pursuant to Section 3.04 or Section 3.05,
the notice contemplated by such provisions (the “Company Repurchase Notice”) shall:

     (1) state the repurchase price and the Fundamental Change Repurchase Date or the Repurchase
Date to which the Company Repurchase Notice relates;

     (2) state, if applicable, the circumstances constituting the Fundamental Change;

     (3) state that the repurchase price will be paid in cash;

     (4) state that Holders must exercise their right to elect repurchase prior to 5:00 p.m., New
York City time, on the Fundamental Change Repurchase Date or Repurchase Date, as the case may be;

     (5) include a form of Repurchase Notice;

     (6) state the name and address of the Paying Agent;

     (7) state that Debentures must be surrendered to the Paying Agent to collect the repurchase
price;

     (8) state that a Holder may withdraw its Repurchase Notice at any time prior to 5:00 p.m., New
York City time, on the Fundamental Change Repurchase Date or the Repurchase Date, as the case may
be, by delivering a valid written notice of withdrawal in accordance with Section 3.07;

     (9) state whether the Debentures are then convertible, the then applicable Conversion Rate,
including, in the case of the occurrence of a Fundamental Change, expected changes in the
Conversion Rate resulting from such Fundamental Change transaction and expected changes in the
cash, shares or other property deliverable upon conversion of the Debentures as a result of the
occurrence of the Fundamental Change;

     (10) state that Debentures as to which a Repurchase Notice has been given may be converted
only if the Repurchase Notice is withdrawn in accordance with the terms of this Indenture;

     (11) state the amount of interest accrued and unpaid per $1,000 principal amount of Debentures
to, but excluding, the Fundamental Change Repurchase Date and Repurchase Date, as the case may be;
and

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     (12) state the CUSIP number of the Debentures. A Company Repurchase Notice may be given by the
Company or, at the Company’s request, the Trustee shall give such Company Repurchase Notice in the
Company’s name and at the Company’s expense; provided, that the text of the Company Repurchase
Notice shall be prepared by the Company.

     The Company will, to the extent applicable, comply with the provisions of Rule 13e-4 and Rule
14e-1 (or any successor provision) under the Exchange Act that may be applicable at the time of the
repurchase of the Debentures, file the related Schedule TO (or any successor schedule, form or
report) under the Exchange Act and comply with all other federal and state securities laws in
connection with the repurchase of the Debentures.

     SECTION 3.07 Effect of Repurchase Notice; Withdrawal
.. Upon receipt by the Paying Agent of the Repurchase Notice specified in Section 3.04 or Section
3.05, the Holder of the Debentures in respect of which such Repurchase Notice was given shall
(unless such Repurchase Notice is validly withdrawn in accordance with the following paragraph)
thereafter be entitled to receive solely the repurchase price with respect to such Debentures. Such
repurchase price shall be paid to such Holder, subject to receipt of funds and/or the Debentures by
the Paying Agent, promptly following the later of (x) the Fundamental Change Repurchase Date or the
Repurchase Date with respect to such Debentures (provided the Holder has satisfied the conditions
in Section 3.04 or Section 3.05) and (y) the time of book-entry transfer or delivery of such
Debentures to the Paying Agent by the Holder thereof in the manner required by Section 3.04 or
Section 3.05. The Debentures in respect of which a Repurchase Notice has been given by the Holder
thereof may not be converted pursuant to Article 10 hereof on or after the date of the delivery of
such Repurchase Notice unless such Repurchase Notice has first been validly withdrawn.

     A Repurchase Notice may be withdrawn by means of a written notice of withdrawal delivered to
the office of the Paying Agent in accordance with the Repurchase Notice at any time prior to 5:00
p.m., New York City time, on the Fundamental Change Repurchase Date or Repurchase Date, as the case
may be, specifying:

     (a) the certificate number, if any, of the Debenture in respect of which such notice of
withdrawal is being submitted, or the appropriate Depositary information, in accordance with
appropriate Depositary procedures, if the Debenture in respect of which such notice of withdrawal
is being submitted is represented by a Global Debenture,

     (b) the principal amount of the Debentures with respect to which such notice of withdrawal is
being submitted, and

     (c) the principal amount, if any, of such Debentures which remains subject to the original
Repurchase Notice and which has been or will be delivered for repurchase by the Company.

     If a Repurchase Notice is properly withdrawn, the Company shall not be obligated to repurchase
the Debentures listed in such Repurchase Notice.

     SECTION 3.08 Deposit of Repurchase Price
.. Prior to 11:00 a.m., New York City Time, on the Business Day following the Fundamental Change
Repurchase Date or the

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Repurchase Date, the Company shall deposit with the Paying Agent or, if the
Company is acting as the Paying Agent, shall segregate and hold in trust as provided in Section
6.04, an amount of cash (in immediately available funds if deposited on the Fundamental Change
Repurchase Date or the Repurchase Date, as the case may be), sufficient to pay the aggregate
repurchase price of all the Debentures or portions thereof that are to be repurchased as of the
Fundamental Change Repurchase Date or the Repurchase Date, as the case may be.

     If on the Business Day following the Fundamental Change Repurchase Date or the Repurchase Date
the Paying Agent holds cash sufficient to pay the repurchase price of the Debentures that Holders
have elected to require the Company to repurchase in accordance with Section 3.04 or 3.05, as the
case may be, then, as of the Fundamental Change Repurchase Date or the Repurchase Date, as the case
may be, such Debentures will cease to be outstanding, interest will cease to accrue and all other
rights of the Holders of such Debentures will terminate, other than the right to receive the
repurchase price upon delivery or book-entry transfer of the Debentures. This will be the case
whether or not book-entry transfer of the Debentures has been made or the Debentures have been
delivered to the Paying Agent.

     SECTION 3.09 Debentures Repurchased in Part
.. Upon presentation of any Debentures repurchased only in part, the Company shall execute and the
Trustee shall authenticate and make available for delivery to the Holder thereof, at the expense of
the Company, a new Debenture or Debentures, of any authorized denomination, in aggregate principal
amount equal to the unrepurchased portion of the Debentures presented.

ARTICLE 4

COVENANTS

     SECTION 4.01 Payment of Debentures
.. The Company shall promptly pay the principal of and interest on the Debentures on the dates and
in the manner provided in the Debentures and in this Indenture. Principal and interest shall be
considered paid on the date due if on such date the Trustee or the Paying Agent holds in accordance
with this Indenture money sufficient to pay all principal and interest then due and the
Trustee or the Paying Agent, as the case may be, is not prohibited from paying such money to the
Debentureholders on that date pursuant to the terms of this Indenture.

     The Company shall pay interest on overdue principal at the rate specified therefor in the
Debentures, and it shall pay interest on overdue installments of interest at the same rate to the
extent lawful.

     SECTION 4.02 Maintenance of Office or Agency
.. The Company will maintain an office or agency in the United States, where the Debentures may be
surrendered for registration of transfer or exchange or for presentation for payment or for
conversion, redemption or repurchase and where notices and demands to or upon the Company in
respect of the Debentures and this Indenture may be served. As of the date of this Indenture, such
office is located at the office of the Trustee located at 1445 Ross Avenue, 2nd Floor,
Dallas, Texas 75202-2812 and, at any other time, at such other address as the Trustee may designate
from time to time by notice to the Company. The Company will give prompt written notice to the
Trustee of the location, and any change in the location, of such office or agency not designated or
appointed by

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the Trustee. 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.

     The Company may also from time to time designate co-registrars and one or more offices or
agencies where the Debentures may be presented or surrendered for any or all such purposes and may
from time to time rescind such designations. The Company will 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.

     So long as the Trustee is the Registrar, the Trustee agrees to mail, or cause to be mailed,
the notices set forth in Section 7.08. If co-registrars have been appointed in accordance with
this Section, the Trustee shall mail such notices only to the Company and the Holders of Debentures
it can identify from its records.

     SECTION 4.03 144A Information
.. The Company covenants and agrees that it shall, during any period in which it is not subject to
Section 13 or 15(d) under the Exchange Act, make available to any Holder or beneficial owner of
Debentures or holder or beneficial owner of any Common Stock (collectively, for purposes of this
Section 4.03, “holder”) issued upon conversion thereof which continue to be Restricted Securities
and any prospective purchaser of Debentures or such Common Stock designated by such holder, the
information required pursuant to Rule 144A(d)(4) under the Securities Act upon the request of any
holder of the Debentures or such Common Stock, all to the extent required to enable such holder to
sell its Debentures or Common Stock without registration under the Securities Act within the
limitation of the exemption provided by Rule 144A until such time as such securities are no longer
“restricted securities” within the meaning of Rule 144 under the Securities Act, assuming such
securities are not owned by Affiliate of the Company.

     SECTION 4.04 Existence
.. Except in compliance with Article V, the Company will do or cause to be done all things necessary
to preserve and keep in full force and effect its existence and rights (charter and statutory);
provided that the Company shall not be required to preserve any such right if the Company shall
determine that the preservation thereof is no longer desirable in the conduct of the business of
the Company and that the loss thereof is not disadvantageous in any material respect to the Holders
of Debentures.

     SECTION 4.05 Payment of Taxes and Other Claims
.. The Company will pay or discharge, or cause to be paid or discharged, before the same may become
delinquent, (i) all taxes, assessments and governmental charges levied or imposed upon the Company
or any Significant Subsidiary or upon the income, profits or property of the Company or any
Significant Subsidiary and (ii) all claims for labor, materials and supplies which, if unpaid,
might by law become a lien or charge upon the property of the Company or any Significant
Subsidiary; provided that the Company shall not be required to pay or discharge or cause to be paid
or discharged any such tax, assessment, charge or claim (A) if the failure to do so will not, in
the aggregate, have a material adverse impact on the Company, or (B) if the amount, applicability
or validity is being contested in good faith by appropriate proceedings.

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     SECTION 4.06 Compliance Certificate. The Company
shall deliver to the Trustee within 120 days after the end of each fiscal
year of the Company an Officers’ Certificate stating that a review of the Company’s activities
during the preceding fiscal year has 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, whether
to the best of such Officer’s knowledge the Company during such preceding fiscal year has kept,
observed, performed and fulfilled each and every such covenant contained in this Indenture and
whether or not the signers know of any Default that occurred during such period. If they do know of
any Default, the certificate shall describe the Default, its status and what action the Company is
taking or proposes to take with respect thereto.

     SECTION 4.07 Further Instruments and Acts
.. The Company shall execute and deliver such further instruments and do such further acts as may be
reasonably necessary or proper to carry out more effectively the purpose of this Indenture.

     SECTION 4.08 Intentionally Omitted.

     SECTION 4.09 Additional Interest Notice
.. In the event that the Company is required to pay Additional Interest to Holders of Debentures
pursuant to the Registration Rights Agreement or Section 6.13, the Company will provide written
notice (“Additional Interest Notice”) to the Trustee of its obligation to pay Additional Interest
no later than two calendar days prior to the proposed payment date for Additional Interest, and the
Additional Interest Notice shall set forth the amount of Additional Interest to be paid by the
Company on such payment date. The Trustee shall not at any time be under any duty
or responsibility to any Holder of Debentures to determine the Additional Interest, or with respect
to the nature, extent or calculation of the amount of Additional Interest when made, or with
respect to the method employed in such calculation of the Additional Interest.

     SECTION 4.10 Reporting Obligation
.. (a) The Company shall deliver to the Trustee, within 15 days after filing with the SEC, copies of
its annual reports and of information, documents and other reports (or copies of such portions of
any of the foregoing as the SEC may by rules and regulations prescribe) which the Company is
required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act.

     (b) For the avoidance of doubt, this Section 4.10 is not intended to create any obligation to
timely file reports with the SEC.

     (c) Delivery of reports, information and other documents under this Section 4.10 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).

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ARTICLE 5

SUCCESSOR COMPANY

     SECTION 5.01 When Company May Merge or Transfer Assets
.. The Company shall not, in a single transaction or a series of related transactions, consolidate
with or merge with or into any other Person, or sell, convey, transfer or lease all or
substantially all of its property and assets to another Person unless:

     (a) either (i) the Company is the continuing corporation, or (ii) the resulting, surviving or
transferee Person (if other than the Company) is a corporation or limited liability company
organized and existing under the laws of the United States, any state thereof or the District of
Columbia and such Person assumes, by a supplemental indenture in a form reasonably satisfactory to
the Trustee, and a supplemental agreement, all of the Company’s obligations under the Debentures
and this Indenture and, to the extent then operative, the Registration Rights Agreement;

     (b) immediately after giving effect to the transaction described above, no Default or Event of
Default, has occurred and is continuing; and

     (c) the Company has delivered to the Trustee the Officers’ Certificate and Opinion of Counsel
pursuant to Section 5.03.

     SECTION 5.02 Successor to be Substituted
.. In case of any such consolidation, merger, sale, conveyance, transfer or lease in which the
Company is not the continuing corporation and upon the assumption by the successor Person, by
supplemental indenture, executed and delivered to the Trustee and reasonably satisfactory in
form and substance to the Trustee, of the due and punctual payment of the principal of, and
premium, if any, and interest on all of the Debentures, and the due and punctual performance and
observance of all of the covenants and conditions of this Indenture to be performed or satisfied by
the Company, and by supplemental agreement, executed and delivered to the Trustee and reasonably
satisfactory in form and substance to the Trustee, of all of the obligations of the Company under
the Registration Rights Agreement, if required, such successor Person shall succeed to and be
substituted for the Company, with the same effect as if it had been named herein as the party of
this first part, and Trico Marine Services, Inc. shall be discharged from its obligations under the
Debentures, this Indenture and the Registration Rights Agreement. Such successor Person thereupon
may cause to be signed, and may issue either in its own name or in the name of Trico Marine
Services, Inc. any or all of the Debentures, issuable hereunder that theretofore shall not have
been signed by the Company and delivered to the Trustee; and, upon the order of such successor
Person instead of the Company and subject to all the terms, conditions and limitations in this
Indenture prescribed, the Trustee shall authenticate and shall deliver, or cause to be
authenticated and delivered, any Debentures that previously shall have been signed and delivered by
the officers of the Company to the Trustee for authentication, and any Debentures that such
successor Person thereafter shall cause to be signed and delivered to the Trustee for that purpose.
All the Debentures so issued shall in all respects have the same legal rank and benefit under this
Indenture as the Debentures theretofore or thereafter issued in accordance with the terms of this
Indenture as though all of such Debentures had been issued at the date of the execution hereof. In
the event of any such consolidation, merger, sale, conveyance, transfer or lease, upon compliance

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with this Article 5 the Person named as the “Company” in the first paragraph of this Indenture or
any successor that shall thereafter have become such in the manner prescribed in this Article 5 may
be dissolved, wound up and liquidated at any time thereafter and such Person shall be discharged
from its liabilities as obligor and maker of the Debentures and from its obligations under this
Indenture.

     SECTION 5.03 Opinion of Counsel to be Given Trustee
.. Prior to execution of any supplemental indenture pursuant to this Article 5, the Trustee shall
receive an Officers’ Certificate and an Opinion of Counsel as conclusive evidence that any such
consolidation, merger, sale, conveyance, transfer or lease and any such assumption complies with
the provisions of this Article 5.

ARTICLE 6

DEFAULTS AND REMEDIES

     SECTION 6.01 Events of Default. An “Event of Default” occurs if:

     (a) the Company defaults in any payment of interest on any Debenture when the same becomes due
and payable and such default continues for a period of 30 calendar days;

     (b) the Company defaults in the payment of the principal of any Debenture when the same
becomes due and payable at its Stated Maturity, upon redemption or required repurchase, upon
declaration or otherwise;

     (c) the Company fails to deliver cash and, if applicable, Common Stock (including any
Additional Shares), as required pursuant to Article 10 upon the conversion of any Debentures and
such failure continues for five days following the scheduled settlement date for such conversion;

     (d) the Company fails to provide notice of the anticipated effective date or actual effective
date of a Fundamental Change on a timely basis as required by Section 3.05 or 10.01 this Indenture;

     (e) the Company fails to comply with any of its agreements contained in the Debentures or this
Indenture (other than those referred to in (a), (b), (c), or (d) above) and such failure continues
for 60 days (or, in the case of a failure to comply with its agreements contained in Section 4.10
of (or, the requirements of Section 314(a)(1) of the TIA to the extent deemed (pursuant to Section
318(c) of the TIA) included in) this Indenture, 180 days) after the notice specified below;

     (f) indebtedness for borrowed money of the Company or any Significant Subsidiary is not paid
within any applicable grace period after final maturity or the acceleration of any such
indebtedness by the holders thereof because of a default and the total principal amount of such
indebtedness unpaid or accelerated exceeds $30 million or its foreign currency equivalent at the
time and such failure continues for 30 calendar days after the notice specified below;

     (g) the Company or any Significant Subsidiary pursuant to or within the meaning of any
Bankruptcy Law:

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     (1) commences a voluntary case;

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

     (3) consents to the appointment of a Custodian of it or for any substantial part of its
property; or

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

     (5) or takes any comparable action under any foreign laws relating to insolvency; or

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

     (1) is for relief against the Company or any Significant Subsidiary in an involuntary
case;

     (2) appoints a Custodian of the Company or any Significant Subsidiary or for any
substantial part of its property;

     (3) orders the winding up or liquidation of the Company or any Significant Subsidiary;
or

     (4) any similar relief is granted under any foreign laws and the order or decree
remains unstayed and in effect for 60 days.

     The foregoing shall constitute Events of Default whatever the reason for any such Event of
Default and whether it is voluntary or involuntary or is effected by operation of law or pursuant
to any judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body.

     The term “Bankruptcy Law” means Title 11, United States Code, or any similar Federal or state
law for the relief of debtors. The term “Custodian” means any receiver, trustee, assignee,
liquidator, custodian or similar official under any Bankruptcy Law.

     A Default under clause (e) or (f) above is not an Event of Default until the Trustee or the
Debentureholders of at least 25% in principal amount of the outstanding Debentures notify the
Company of the Default and the Company does not cure such Default within the time specified in such
clause (e) or (f) after receipt of such notice. Such notice must specify the Default, demand that
it be remedied and state that such notice is a “Notice of Default”.

     The Company shall deliver to the Trustee, promptly after the occurrence thereof, written
notice in the form of an Officers’ Certificate of any event which with the giving of notice or the
lapse of time would become an Event of Default, its status and what action the Company is taking or
proposes to take with respect thereto.

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     SECTION 6.02 Acceleration
.. Subject to Section 6.13, if an Event of Default (other than an Event of Default specified in
Section 6.01(g) or (h)) occurs and is continuing, the Trustee by notice to the Company, or the
Debentureholders of at least 25% in principal amount of the outstanding Debentures by notice to the
Company, may declare the principal of and accrued but unpaid interest on all the Debentures to be
due and payable. Upon such a declaration, such principal and interest shall be due and payable
immediately. If an Event of Default specified in Section 6.01(g) or (h) occurs, the principal of
and interest on all the Debentures shall ipso facto become and be immediately due and payable
without any declaration or other act on the part of the Trustee or any Debentureholders. The
Debentureholders of a majority in principal amount of the Debentures by notice to the Trustee may
rescind an acceleration and its consequences (including votes for or consents to such a rescission
obtained in connection with a purchase of, or tender offer or exchange offer for, Debentures) if
the rescission (i) would not conflict with any judgment or decree; (ii) if all existing Events of
Default have been cured or waived except nonpayment of principal or interest that has become due
solely because of acceleration; and (iii) if the Company has paid the compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel. No such rescission shall affect
any subsequent Default or impair any right consequent thereto.

     SECTION 6.03 Other Remedies
.. If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy to
collect the payment of principal of or interest on the Debentures or to enforce the performance of
any provision of the Debentures or this Indenture.

     The Trustee may maintain a proceeding even if it does not possess any of the Debentures or
does not produce any of them in the proceeding. A delay or omission by the Trustee or any
Debentureholder 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. No
remedy is exclusive of any other remedy. All available remedies are cumulative.

     SECTION 6.04 Waiver of Past Defaults
.. Subject to Section 6.02, the Holders of a majority in principal amount of the Debentures then
outstanding by notice to the Trustee may waive an existing Default and its consequences (including
votes for or consents to such a waiver obtained in connection with a purchase of, or tender offer
or exchange offer for, Debentures) except (i) a Default in the payment of the principal of or
interest (including additional interest, if any) on a Debenture, (ii) a Default arising from the
failure to redeem or repurchase any Debenture when required pursuant to the terms of this
Indenture, (iii) a Default arising from the failure of the Company to deliver cash and, if
applicable, Common Stock (including any Additional Shares) upon the conversion of any Debentures
pursuant to the terms of this Indenture or (iv) a Default in respect of a provision that under
Section 9.02 cannot be amended without the consent of each Debentureholder affected. When a Default
is waived, it is deemed cured, but no such waiver shall extend to any subsequent or other Default
or impair any consequent right.

     SECTION 6.05 Control by Majority
.. The Debentureholders of a majority in principal amount of the Debentures may direct the time,
method and place of conducting any proceeding for any remedy available to the Trustee or of
exercising any trust or power conferred on the Trustee. However, the Trustee may refuse to follow
any direction that conflicts with law or this Indenture or, subject to Section 7.01, that the
Trustee determines is unduly prejudicial to

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the rights of other Debentureholders or would involve
the Trustee in personal liability; provided, however, that the Trustee may take any other action
deemed proper by the Trustee that is not inconsistent with such direction. Prior to taking any
action hereunder, the Trustee shall be entitled to indemnification satisfactory to it in its sole
discretion against all losses and expenses caused by taking or not taking such action.

     SECTION 6.06 Limitation on Suits
.. Except to enforce the right to receive payment of principal, premium (if any) or interest when
due, no Debentureholder may pursue any remedy with respect to this Indenture or the Debentures
unless:

     (a) the Debentureholder gives to the Trustee written notice stating that an Event of Default
is continuing;

     (b) the Debentureholders of at least 25% in principal amount of the Debentures make a written
request to the Trustee to pursue the remedy;

     (c) such Debentureholder or Debentureholders offer to the Trustee reasonable security or
indemnity 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 of security or indemnity; and

     (e) the Debentureholders of a majority in principal amount of the Debentures do not give the
Trustee a direction inconsistent with the request during such 60-day period. A Debentureholder may
not use this Indenture to prejudice the rights of another Debentureholder or to obtain a preference
or priority over another Debentureholder.

     SECTION 6.07 Rights of Debentureholders to Receive Payment
.. Notwithstanding any other provision of this Indenture, the right of any Debentureholder to
receive payment of principal of and liquidated damages and interest on the Debentures held by such
Debentureholder, on or after the respective due dates expressed in the Debentures, or to convert
such Debenture in accordance with Article 10, or to bring suit for the enforcement of any such
payment or right to convert on or after such respective dates, shall not be impaired or affected
without the consent of such Debentureholder.

     SECTION 6.08 Collection Suit by Trustee
.. If an Event of Default specified in Section 6.01(a) or (b) occurs and is continuing, the Trustee
may recover judgment in its own name and as trustee of an express trust against the Company for the
whole amount then due and owing (together with interest on any unpaid interest to the extent
lawful) and the amounts provided for in Section 7.07.

     SECTION 6.09 Trustee May File Proofs of Claim. The Trustee may 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 and the Debentureholders allowed in any
judicial proceedings relative to the Company, its creditors or its property and, unless prohibited
by law or applicable regulations, may vote on behalf of the Debentureholders in any election of a
trustee in bankruptcy or other Person performing similar functions, and any Custodian in any such
judicial proceeding is hereby authorized by each Debentureholder to make payments to the Trustee
and,

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in the event that the Trustee shall consent to the making of such payments directly to the
Debentureholders, to pay to the Trustee any amount due it for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and its counsel, and any other
amounts due the Trustee under Section 7.07.

     SECTION 6.10 Priorities
.. If the Trustee collects any money or property pursuant to this Article 6, it shall pay out the
money or property in the following order:

     FIRST: to the Trustee for amounts due under Section 7.07;

     SECOND: to Debentureholders for amounts due and unpaid on the Debentures for principal and
interest, ratably without preference or priority of any kind, according to the amounts due and
payable on the Debentures for principal and interest, respectively; and

     THIRD: to the Company.

     The Trustee may fix a record date and payment date for any payment to Debentureholders
pursuant to this Section. At least 15 days before such record date, the Trustee shall mail to each
Debentureholder and the Company a notice that states the record date, the payment date and amount
to be paid.

     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 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, 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, or a suit by Debentureholders of more than 10% in principal amount of the Debentures or to
any suit instituted by any Holder of Debentures for the enforcement of the payment of the principal
of, or premium, if any, or interest on any Debentures on or after the due date expressed in such
Debentures or to any suit for the enforcement of the right to convert any Debentures in accordance
with the provisions of Article 10.

     SECTION 6.12 Waiver of Stay, Extension or Usury Laws
.. The Company shall not at any time insist upon, or 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, which may affect the covenants or the performance of this Indenture; and
the Company hereby expressly waives all benefit or advantage of any such law, and shall not 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 had been enacted.

     SECTION 6.13 Sole Remedy for Failure to Report.
Notwithstanding any other provision of this Indenture, the sole remedy for an Event of Default
relating to the failure of the Company to comply with its agreements under Section 4.10 of this
Indenture, and for any failure of the Company to comply with the requirements of Section 314(a)(1)
of the TIA, will for the 365 days after the occurrence of such an Event of Default consist
exclusively of the right to receive Additional Interest on the principal amount of the Debentures
at a rate equal to 0.50%

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per annum. This Additional Interest will be in addition to any Additional
Interest that may accrue as a result of a registration default as described in the Registration
Rights Agreement and will be payable in the same manner and subject to the same terms as other
interest payable under this Indenture. The Additional Interest will accrue on all outstanding
Debentures from and including the date on which such Event of Default relating to a failure to
comply with Section 4.10 or Section 314(a)(1) of the TIA first occurs to but not excluding the
365th day thereafter (or such earlier date on which the Event of Default relating to a failure to
comply with Section 4.10 or Section 314(a)(1) of the TIA shall have been cured or waived). On such
365th day (or earlier, if the Event of Default relating to a failure to comply with Section 4.10
hereof or Section 314(a)(1) of the TIA is cured or waived prior to such 365th
day), such Additional Interest will cease to accrue and the Debentures will be subject to
acceleration and other remedies as provided in this Article 6 if the Event of Default is
continuing. For the avoidance of doubt, the provisions of this Section 6.13 will not affect the
rights of Holders of Debentures in the event of the occurrence of any other Event of Default and
will have no effect on the rights of Holders of Debentures under the Registration Rights Agreement.

ARTICLE 7

TRUSTEE

     SECTION 7.01 Duties of Trustee
.. (a) If an Event of Default has occurred and is continuing, the Trustee shall exercise the rights
and powers vested in it by this Indenture and use the same degree of care and 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:

     (1) the Trustee need only perform such duties as are specifically set forth in this
Indenture and no implied covenants or obligations shall be read into this Indenture against
the Trustee; and

     (2) 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 furnished to the Trustee 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.

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

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

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

     (3) 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.

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     (d) Every provision of this Indenture that in any way relates to the Trustee is subject to
paragraphs (a), (b) and (c) of this Section.

     (e) 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.

     (f) Money held in trust by the Trustee need not be segregated from other funds except to the
extent required by law.

     (g) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or otherwise incur financial liability in the performance of any of its duties hereunder or in the
exercise of any of its rights or powers, if it shall have reasonable grounds to believe that
repayment of such funds or adequate indemnity against such risk or liability is not reasonably
assured to it.

     (h) Every provision of this Indenture relating to the conduct or affecting the liability of or
affording protection to the Trustee shall be subject to the provisions of this Section and to the
provisions of the TIA.

     SECTION 7.02 Rights of Trustee
.. (a) The Trustee may rely on any document 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. The Trustee shall not be liable for any action it takes or omits to take
in good faith in reliance on the Officers’ Certificate or Opinion of Counsel.

     (c) The Trustee may act through 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
which it believes to be authorized or within its rights or powers.

     (e) The Trustee may consult with counsel, and the advice or opinion of counsel with respect to
legal matters relating to this Indenture and the Debentures shall be full and complete
authorization and protection from liability in respect to any action taken, omitted or suffered by
it hereunder in good faith and in accordance with the advice or opinion of such counsel.

     (f) 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, consent,
order, approval, bond, debenture, note or other paper or document, but the Trustee, in its
discretion, may make such further inquiry or investigation into such facts or matters as it may see
fit.

     (g) The Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request, order or direction of any of the Debentureholders pursuant to
the provisions of this Indenture, unless such Debentureholders shall have offered to

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the Trustee
reasonable security or indemnity against the costs, expenses and liabilities which may be incurred
therein or thereby.

     (h) The rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its rights to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and to each agent, custodian
and other Person employed to act hereunder.

     (i) The Trustee may request that the Company deliver an Officers’ Certificate setting forth
the names of individuals and/or titles of officers authorized at such time to take specified
actions pursuant to this Indenture, which Officers’ Certificate may be signed by any person
authorized to sign an Officers’ Certificate, including any person specified as so authorized in any
such certificate previously delivered and not superseded.

     (j) The permissive rights of the Trustee enumerated herein shall not be construed as duties.

     SECTION 7.03 Individual Rights of Trustee
.. The Trustee in its individual or any other capacity may become the owner or pledgee of Debentures
and may otherwise deal with the Company or its Affiliates with the same rights it would have if it
were not Trustee. Any Conversion Agent, Paying Agent, Registrar or co-paying agent may do the same
with like rights. However, the Trustee must comply with Sections 7.10 and 7.11.

     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 Debentures, it shall not be accountable for the Company’s use of
the proceeds from the Debentures, and it shall not be responsible for any statement of the Company
in this Indenture or in any document issued in connection with the sale of the Debentures or in the
Debentures other than the Trustee’s certificate of authentication.

     SECTION 7.05 Notice of Defaults
.. (a) The Trustee shall not be deemed to have notice of any Default, other than a payment default,
unless a Trust Officer shall have been advised in writing that a Default has occurred. No duty
imposed upon the Trustee in this Indenture shall be applicable with respect to any Default of which
the Trustee is not deemed to have notice.

     (b) If a Default occurs and is continuing and if it is known to the Trustee, the Trustee shall
mail to each Debentureholder notice of the Default within the earlier of 90 days after it occurs or
30 days after it is known to a Trust Officer or written notice of it is received by the Trustee.
Except in the case of a Default in payment of principal, premium (if any) or interest on any
Debenture (including payments pursuant to the redemption provisions of such Debenture), the Trustee
may withhold notice if and so long as a committee of its Trust Officers in good faith determines
that withholding notice is in the interests of the Debentureholders.

     SECTION 7.06 Reports by Trustee to Debentureholders
.. As promptly as practicable after each July 15, beginning with July 15, 2008, and in any event
prior to December 31 in each subsequent year, the Trustee shall, to the extent that any of the
events described in TIA § 313(a) occurred within the previous twelve months, but not otherwise,
mail to

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each Debentureholder a brief report dated as of July 15 that complies with Section 313(a)
of the TIA. The Trustee shall also comply with Section 313(b) of the TIA.

     A copy of each report at the time of its mailing to Debentureholders shall be filed with the
SEC and each stock exchange (if any) on which the Debentures are listed. The Company agrees to
notify promptly the Trustee, in writing, whenever the Debentures become listed on any stock
exchange and of any delisting thereof.

     SECTION 7.07 Compensation and Indemnity
.. The Company shall pay to the Trustee from time to time such compensation as the Company and the
Trustee shall from time to time agree in writing. 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 upon request for all reasonable out-of-pocket expenses incurred or made by it, including
costs of collection, in addition to the compensation for its services. Such expenses shall include
the reasonable compensation and expenses, disbursements and advances of the Trustee’s agents,
counsel, accountants and experts. The Company shall indemnify the Trustee, and hold it harmless,
against any and all loss, liability or expense (including reasonable attorneys’ fees) incurred by
or in connection with the offer and sale of the Debentures or the administration of this trust and
the performance of its duties hereunder. The Trustee shall notify the Company of any claim for
which it may seek indemnity promptly upon obtaining actual knowledge thereof; provided, however,
that any failure so to notify the Company shall not relieve the Company of its indemnity
obligations hereunder. The Company shall defend the claim and the indemnified party shall provide
reasonable cooperation at the Company’s expense in the defense. Such indemnified parties may have
separate counsel and the Company shall pay the fees and expenses of such counsel; provided,
however, that the Company shall not be required to pay such fees and expenses if it assumes such
indemnified parties’ defense and, in such indemnified parties’ reasonable judgment, there is no
conflict of interest between the Company and such parties in connection with such defense. The
Company need not reimburse any expense or indemnify against any loss, liability or expense incurred
by an indemnified party through such party’s own willful misconduct and negligence.

     To secure the Company’s payment obligations in this Section, the Trustee shall have a lien
prior to the Debentures on all money or property held or collected by the Trustee other than money
or property held in trust to pay principal of and interest and any liquidated damages on particular
Debentures.

     The Company’s payment obligations pursuant to this Section shall survive the satisfaction or
discharge of this Indenture, any rejection or termination of this Indenture under any bankruptcy
law or the resignation or removal of the Trustee. When the Trustee incurs expenses after the
occurrence of a Default specified in Section 6.01(g) or (h) with respect to the Company, the
expenses are intended to constitute expenses of administration under the Bankruptcy Law.

     SECTION 7.08 Replacement of Trustee
.. The Trustee may resign at any time by so notifying the Company. The Holders of a majority in
principal amount of the Debentures may remove the Trustee by so notifying the Trustee and may
appoint a successor Trustee. The Company shall remove the Trustee if:

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

     (b) the Trustee is adjudged bankrupt or insolvent;

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

     (d) the Trustee otherwise becomes incapable of acting.

     If the Trustee resigns, is removed by the Company or by the Holders of a majority in principal
amount of the Debentures and such Debentureholders do not reasonably promptly appoint a successor
Trustee, or if a vacancy exists in the office of Trustee for any reason (the Trustee in such event
being referred to herein as the retiring Trustee), the Company shall promptly appoint 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
Debentureholders. The retiring Trustee shall promptly transfer all property held by it as Trustee
to the successor Trustee, subject to the lien provided for in Section 7.07.

     If a successor Trustee does not take office within 60 days after the retiring Trustee resigns
or is removed, the retiring Trustee or the Holders of 10% in principal amount of the Debentures may
petition any court of competent jurisdiction for the appointment of a successor Trustee.

     If the Trustee fails to comply with Section 7.10, any Debentureholder may petition any court
of competent jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee.

     Notwithstanding the replacement of the Trustee pursuant to this Section, the Company’s
obligations under Section 7.07 shall continue for the benefit of the retiring Trustee.

     SECTION 7.09 Successor Trustee by Merger
.. If the Trustee consolidates with, merges or converts into, or transfers all or substantially all
of its corporate trust business or assets to, another corporation or banking association, the
resulting, surviving or transferee corporation without any further act shall be the successor
Trustee.

     In case at the time such successor or successors by merger, conversion or consolidation to the
Trustee shall succeed to the trusts created by this Indenture any of the Debentures shall have been
authenticated but not delivered, any such successor to the Trustee may adopt the certificate of
authentication of any predecessor trustee, and deliver such Debentures so authenticated; and in
case at that time any of the Debentures shall not have been authenticated, any successor to the
Trustee may authenticate such Debentures either in the name of any predecessor hereunder or in
the name of the successor to the Trustee; and in all such cases such certificates shall have the
full force which it is anywhere in the Debentures or in this Indenture provided that the
certificate of the Trustee shall have.

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     SECTION 7.10 Eligibility; Disqualification
.. The Trustee shall at all times satisfy the requirements of TIA § 310(a). The Trustee shall have a
combined capital and surplus of at least $100,000,000 as set forth in its most recent published
annual report of condition. The Trustee shall comply with TIA § 310(b); provided, however, that
there shall be excluded from the operation of TIA § 310(b)(1) any indenture or indentures under
which other securities or certificates of interest or participation in other securities of the
Company are outstanding if the requirements for such exclusion set forth in TIA § 310(b)(1) are
met.

     SECTION 7.11 Preferential Collection of Claims Against Company
.. The Trustee shall comply with TIA § 311(a), excluding any creditor relationship listed in TIA §
311(b). A Trustee who has resigned or been removed shall be subject to TIA § 311(a) to the extent
indicated.

ARTICLE 8

DISCHARGE OF INDENTURE

     SECTION 8.01 Discharge of Liability on Debentures
.. (a) When (i) the Company delivers to the Trustee all outstanding Debentures (other than
Debentures replaced pursuant to Section 2.09) for cancellation or (ii) all outstanding Debentures
have become due and payable, whether at maturity or upon a redemption or repurchase pursuant to
Article 3 hereof, and the Company irrevocably deposits with the Trustee money sufficient to pay at
maturity or upon redemption or repurchase all outstanding Debentures, including interest thereon to
maturity or such redemption or repurchase date (other than Debentures replaced pursuant to Section
2.09), and any shares of Common Stock or other property due in respect of converted Debentures, and
if in each such case the Company pays all other sums payable hereunder by the Company, then this
Indenture shall, subject to Section 8.01(b), cease to be of further effect. The Trustee shall
acknowledge satisfaction and discharge of this Indenture on demand of the Company accompanied by an
Officers’ Certificate and an Opinion of Counsel and at the cost and expense of the Company.

     (b) Notwithstanding clause (a) above, the Company’s obligations in Sections 2.05, 2.06, 2.07,
2.08, 2.09, 2.10, 7.07, 7.08 and in this Article 8 shall survive until the Debentures have been
paid in full. Thereafter, the Company’s obligations in Sections 7.07, 8.03 and 8.04 shall survive.

     SECTION 8.02 Application of Trust Money
.. The Trustee shall hold in trust money and any shares of Common Stock or other property due in
respect of converted Debentures deposited with it pursuant to this Article 8. It shall apply the
deposited money through the Paying Agent and in accordance with this Indenture to the payment of
principal of and interest on the Debentures or, in the case of any shares of Common Stock or other
property due in respect of converted Debentures, in accordance with this Indenture in relation to
the conversion of Debentures pursuant to the terms hereof.

     SECTION 8.03 Repayment to Company
.. The Trustee and the Paying Agent shall promptly turn over to the Company upon request any excess
money or securities held by them at any time.

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     Subject to any applicable abandoned property law, the Trustee and the Paying Agent shall pay
to the Company upon written request any money held by them for the payment of principal or interest
and any shares of Common Stock or other property due in respect of converted Debentures that
remains unclaimed for two years, and, thereafter, Debentureholders entitled to the money and/or
securities must look to the Company for payment as general creditors.

     SECTION 8.04 Reinstatement
.. If the Trustee or Paying Agent is unable to apply any money or to deliver any shares of Common
Stock or other property due in respect of converted Debentures in accordance with this Article 8 by
reason of any legal proceeding or by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, the Company’s
obligations under this Indenture and the Debentures shall be revived and reinstated as though no
deposit had occurred pursuant to this Article 8 until such time as the Trustee or Paying Agent is
permitted to apply all such money and any shares of Common Stock or other property due in respect
of converted Debentures in accordance with this Article 8; provided, however, that, if the Company
has made any payment of interest on or principal of any Debentures because of the reinstatement of
its obligations, the Company shall be subrogated to the rights of the Debentureholders of such
Debentures to receive such payment from the money held by the Trustee or Paying Agent.

ARTICLE 9

AMENDMENTS

     SECTION 9.01 Without Consent of Debentureholders
.. The Company and the Trustee may amend this Indenture or the Debentures without notice to or
consent of any Debentureholder:

     (a) to cure any ambiguity, omission, defect or inconsistency; provided that such modification
or amendment does not adversely affect the interests of the Holders of the Debentures in any
material respect; provided, further, that any amendment made solely to conform the provisions of
this Indenture to the Description of the Debentures contained in the Company’s Offering Memorandum
dated February 1, 2007 will not be deemed to adversely affect the interests of the Holders of the
Debentures;

     (b) to comply with Article 5;

     (c) to provide for uncertificated Debentures in addition to or in place of certificated
Debentures; provided, however, that the uncertificated Debentures are issued in registered form for
purposes of Section 163(f) of the Code or in a manner such that the uncertificated Debentures are
described in Section 163(f)(2)(B) of the Code;

     (d) to add guarantees with respect to the Debentures or to secure the Debentures;

     (e) to add to the covenants of the Company for the benefit of the Debentureholders or to
surrender any right or power herein conferred upon the Company;

     (f) to make any provision with respect to matters or questions arising under this Indenture
that the Company may deem necessary or desirable and that shall not be inconsistent with provisions
of this Indenture; provided that such change or modification does not, in the

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good faith opinion of
the Company’s Board of Directors, adversely affect the interests of the Holders of the Debentures
in any material respect;

     (g) to provide for a successor Trustee;

     (h) to make any increase in the Conversion Rate;

     (i) to make any changes or modifications necessary in connection with the registrations of the
Debentures under the Securities Act as contemplated in the Registration Rights Agreement; provided
that such change or modification does not adversely affect the interests of the Holders of the
Debentures in any material respect;

     (j) to comply with any requirements of the SEC in connection with qualifying, or maintaining
the qualification of, this Indenture under the TIA; or

     (k) provide for amendments to the conversion rights of Holders of the Debentures and the
Company’s repurchase obligations in connection with a Fundamental Change or in the event of any
change or reclassification of the Common Stock, merger or consolidation, or sale, lease, transfer,
conveyance or other disposition of all or substantially all of the Company’s assets and those of
its Subsidiaries taken as a whole, including any adjustment contemplated by Section 10.06 or 10.13.

     After an amendment under this Section becomes effective, the Company shall mail to
Debentureholders a notice briefly describing such amendment. The failure to give such notice to
all Debentureholders, or any defect therein, shall not impair or affect the validity of an
amendment under this Section.

     SECTION 9.02 With Consent of Debentureholders
.. The Company and the Trustee may amend this Indenture or the Debentures with the written consent
of the Holders of at least a majority in principal amount of the Debentures then outstanding
(including consents obtained in connection with a tender offer or exchange offer for the
Debentures), without notice to any other Debentureholder. However, without the consent of each
Holder of an outstanding Debenture affected, an amendment may not:

     (a) reduce the percentage of the Debentures required for consent to any modification of this
Indenture that requires the consent of each affected Holder;

     (b) reduce the rate of or extend the time for payment of interest (including Additional
Interest, if any) on any Debenture;

     (c) reduce the principal of or extend the Stated Maturity of any Debenture;

     (d) reduce the amount payable in relation to the repurchase or redemption of any Debentures;

     (e) make any Debenture payable in money other than that stated in the Debenture;

     (f) change the redemption provisions in a manner adverse to the Holders;

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     (g) change our obligation to repurchase any Debentures at the option of the Holder in a manner
adverse to the Holders;

     (h) change our obligation to repurchase any Debentures upon a Fundamental Change in a manner
adverse to the Holders;

     (i) impair the right of a Holder to institute suit for payment of any Debentures; or

     (j) except as otherwise permitted pursuant to this Indenture, adversely affect the right of a
Holder to convert any Debentures into cash, or reduce the number of shares of Common Stock or any
other property receivable upon conversion pursuant to the terms of this Indenture.

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

     After an amendment under this Section becomes effective, the Company shall mail to
Debentureholders a notice briefly describing such amendment. The failure to give such notice to
all Debentureholders, or any defect therein, shall not impair or affect the validity of an
amendment under this Section.

     SECTION 9.03 Compliance with Trust Indenture Act
.. Every amendment to this Indenture or the Debentures shall comply with the TIA as then in effect.

     SECTION 9.04 Revocation and Effect of Consents and Waivers
.. A consent to an amendment or a waiver by a Debentureholder of a Debenture shall bind the
Debentureholder and every subsequent Debentureholder of that Debenture or portion of the Debenture
that evidences the same debt as the consenting Debentureholder’s Debenture, even if notation of the
consent or waiver is not made on the Debenture. However, any such Debentureholder or subsequent
Debentureholder may revoke the consent or waiver as to such
Debentureholder’s Debenture or portion of the Debenture if the Trustee receives the notice of
revocation before the date the amendment or waiver becomes effective. After an amendment or waiver
becomes effective, it shall bind every Debentureholder. An amendment or waiver becomes effective
once both (i) the requisite number of consents have been received by the Company or the Trustee and
(ii) such amendment or waiver has been executed by the Company and the Trustee.

     The Company may, but shall not be obligated to, fix a record date for the purpose of
determining the Debentureholders entitled to give their consent or take any other action described
above or required or permitted to be taken pursuant to this Indenture. If a record date is fixed,
then notwithstanding the immediately preceding paragraph, those Persons who were Debentureholders
at such record date (or their duly designated proxies), and only those Persons, shall be entitled
to give such consent or to revoke any consent previously given or to take any such action, whether
or not such Persons continue to be Debentureholders after such record date. No such consent shall
be valid or effective for more than 120 days after such record date.

     It is not necessary for the consent of the Holders of Debentures under this Indenture to
approve the particular form of any proposed amendment, supplement or waiver, but it is sufficient
if such consent approves the substance thereof.

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     For purposes of this Indenture, the consent of the Holder of a Global Debenture shall be
deemed to include any consent delivered by any member of, or participant in, any Depositary or DTC,
any nominees thereof and their respective successors and assigns, or such other depositary
institution hereinafter appointed by the Company (“Depositary Entity”) by electronic means in
accordance with the Automated Tender Offer Procedures system or other customary procedures of, and
pursuant to authorization by, such Depositary Entity.

     Without limiting the generality of this Section 9.04, unless otherwise provided in or pursuant
to this Indenture, a Holder, including a Depositary or its nominee that is a Holder of a Global
Debenture, may give, make or take, by an agent or agents duly appointed in writing, any request,
demand, authorization, direction, notice, consent, waiver or other action provided or permitted in
or pursuant to this Indenture to be given, made or taken by Holders, and a Depositary or its
nominee that is a Holder of a Global Debenture may duly appoint in writing as its agent or agents
members of, or participants in, such Depositary holding interests in such Global Debenture in the
records of such Depositary, with regard to all or any part of the principal amount of such
Debenture.

     Nothing in this paragraph shall be construed to prevent the Company or the Trustee from fixing
a new record date for any action for which a record date has previously been set pursuant to this
paragraph (whereupon the record date previously set shall automatically and with no further action
by any Person be canceled and of no effect).

     SECTION 9.05 Notation on or Exchange of Debentures
.. If an amendment changes the terms of a Debenture, the Trustee may require the Debentureholder of
the Debenture to deliver it to the Trustee. The Trustee may place an appropriate notation on the
Debenture regarding the changed terms and return it to the
Debentureholder. Alternatively, if the Company or the Trustee so determines, the Company in
exchange for the Debenture shall issue and the Trustee shall authenticate a new Debenture that
reflects the changed terms. Failure to make the appropriate notation or to issue a new Debenture
shall not affect the validity of such amendment.

     SECTION 9.06 Trustee to Sign Amendments
.. The Trustee shall sign any amendment authorized pursuant to this Article 9 if the amendment does
not adversely affect the rights, duties, liabilities or immunities of the Trustee. If it does, the
Trustee may but need not sign it. In signing such amendment 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 11.04, an Officers’ Certificate and an Opinion of Counsel stating
that such amendment is authorized or permitted by this Indenture and that such amendment is the
legal, valid and binding obligation of the Company enforceable against it in accordance with its
terms, subject to customary exceptions, and complies with the provisions hereof (including Section
9.03).

ARTICLE 10

CONVERSION OF DEBENTURES

     SECTION 10.01 Right to Convert
.. (a) Subject to and upon compliance with the provisions of this Indenture, on or prior to 5:00
p.m., New York City time, on the Business Day immediately preceding January 15, 2027, the Holder of
any Debentures not previously redeemed or repurchased shall have the right, at such Holder’s
option, to convert the principal amount of

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the Debentures held by such Holder, or any portion of
such principal amount which is an integral multiple of $1,000, into cash and, if applicable, fully
paid and non-assessable shares of Common Stock (as such shares shall then be constituted) as
described in Section 10.12, at the Conversion Rate in effect at such time, by surrender of the
Debentures so to be converted in whole or in part, together with any required funds, under the
circumstances described in this Section 10.01 and in the manner provided in Section 10.02. The
Debentures shall be convertible, on or prior to 5:00 p.m., New York City time, on the Business Day
immediately preceding January 15, 2027, only during the following periods:

     (1) prior to January 15, 2025, on any date during any Fiscal Quarter beginning after
March 31, 2007 (and only during such Fiscal Quarter), if the Closing Sale Price of a share
of Common Stock was more than 125% of the then current Conversion Price for at least 20
Trading Days in the 30 consecutive Trading-Day period ending on the last Trading Day of the
immediately preceding Fiscal Quarter;

     (2) on any date that is on or after January 15, 2025;

     (3) with respect to Debentures called for redemption pursuant to Section 3.01, until
5:00 p.m., New York City time, on the Business Day prior to the relevant redemption date;

     (4) if the Company distributes to all or substantially all holders of Common Stock
rights or warrants (other than pursuant to a shareholder rights plan) entitling them to
purchase, for a period of 45 calendar days or less, Common Stock at less than the average
Closing Sale Price per share of the Common Stock for the 10 Trading Days preceding the
declaration date for such distribution, on any date during the period specified in Section
10.01(c);

     (5) if the Company distributes to all or substantially all holders of Common Stock,
cash or other assets, debt securities or rights to purchase the Company’s securities (other
than pursuant to a shareholder rights plan, share split of Common Stock or a dividend or
distribution on its Common Stock in shares of Common Stock), which distribution has a per
share value as determined by the Board of Directors exceeding 10% of the Closing Sale Price
per share of the Common Stock on the Trading Day preceding the declaration for such
distribution, on any date during the period specified in Section 10.01(c);

     (6) if a Fundamental Change occurs, at any time beginning on the Business Day following
the effective date of the Fundamental Change until 5:00 p.m., New York City time, on the
Business Day preceding the Fundamental Change Repurchase Date relating to such Fundamental
Change;

     (7) during the five consecutive Business Days immediately following any ten consecutive
Trading-Day period in which the Trading Price per $1,000 principal amount of the Debentures
was less than 98% of the average of the Closing Sale Price of a share of Common Stock during
such ten Trading-Day period multiplied by the applicable Conversion Rate; or

49

 

     (8) as specified in Section 10.01(d).

     (b) (1) The Company shall, at the Trustee’s request, notify the Trustee in writing whether the
condition to conversion set forth in Section 10.01(a)(1) above shall have been satisfied with
respect to such calendar quarter.

     (2) The Trustee shall have no obligation to determine the Trading Price of the
Debentures and whether the Debentures are convertible pursuant to clause (7) of Section
10.01(a) unless the Company has requested such determination; and the Company shall have no
obligation to make such request unless a Holder of the Debentures makes a request for a
determination and provides the Company with reasonable evidence that the Trading Price per
$1,000 principal amount of Debentures is below the required threshold (i.e., 98% of the
product of the Closing Sale Price of the Common Stock and the Conversion Rate then in
effect). At such time, the Company shall instruct the Trustee to determine the Trading Price
of the Debentures beginning on the next Trading Day and on each successive Trading Day until
the Trading Price for the Debentures for a Trading Day is at least 98% of the product of the
Closing Sale Price of the Common Stock and the then current Conversion Rate, and to notify
the Company accordingly.

     The Trustee shall be entitled at its sole discretion to consult with the Company and to
request the assistance of the Company in connection with the Trustee’s duties and obligations
pursuant to Section 10.01(b)(2) hereof (including without limitation the calculation or
determination of the Conversion Rate, the Closing Sale Price and the Trading Price), and the
Company agrees, if requested by the Trustee, to cooperate with, and provide assistance to, the
Trustee in carrying out its duties under this Section 10.01.

     (c) In the case of a distribution contemplated by clauses (4) or (5) of Section 10.01(a), the
Company shall notify Holders of Debentures at least 10 Business Days prior to the “ex” date for
such distribution (the “Distribution Notice”). Once the Company has given the Distribution Notice,
Holders may surrender their Debentures for conversion at any time until the earlier of (i) 5:00
p.m., New York City time, on the Business Day immediately preceding the “ex” date or (ii) the
Company’s announcement that such distribution will not take place. In the event of a distribution
contemplated by clauses (4) or (5) of Section 10.01(a), Holders may not convert the Debentures if
the Holders may otherwise participate in such distribution without converting their Debentures.

     (d) In addition, if the Company consolidates with or merges with or into another Person or is
a party to a binding share exchange or conveys, transfers, sells, leases or otherwise disposes of
all or substantially all of its properties and assets (other than a consolidation, merger, binding
share exchange or sale or conveyance, the primary purpose of which is to effect a reincorporation
or redomiciling of the Company) in each case in a transaction not constituting a Fundamental
Change, in each case pursuant to which the Common Stock would be converted into cash, securities
and/or other property, then the Holders shall have the right to convert their Debentures at any
time beginning fifteen calendar days prior to the date announced by the Company as the anticipated
effective date of the transaction and until and including the date which is 15 calendar days after
the date that is the actual effective date of such transaction.

50

 

     The Company shall determine the anticipated effective date of the transaction (which
determination shall be conclusive for purposes of commencing the convertibility period described in
the preceding paragraph), and publicly announce such date not later than 20 calendar days prior to
such date.

     (e) Whenever the Debentures shall become convertible pursuant to Section 10.01(a)(6) or (7),
the Company or, at the Company’s request, the Trustee in the name and at the expense of the
Company, shall notify the Holders of the event triggering such convertibility in the manner
provided in Section 11.02, and the Company shall also publicly announce such information. Any
notice so given shall be conclusively presumed to have been duly given, whether or not the Holder
receives such notice. The Company shall determine the anticipated effective date of any Fundamental
Change (which determination shall be conclusive for purposes of this sentence) and notify Holders
at least 10 calendar days prior to the anticipated effective date of any Fundamental Change, to the
extent practicable and in any event, no later than the effective date thereof.

     (f) Debentures in respect of which a Holder has delivered a Repurchase Notice exercising such
Holder’s right to require the Company to repurchase such Debentures pursuant to Section 3.04 or
3.05 may be converted only if such Repurchase Notice is withdrawn in
accordance with Section 3.07 prior to 5:00 p.m., New York City time, on the Business Day
immediately preceding the Repurchase Date or the Fundamental Change Repurchase Date, as applicable.

     (g) A Holder of Debentures is not entitled to any rights of a holder of Common Stock until
such Holder has converted his Debentures to Common Stock, and only to the extent such Debentures
are deemed to have been converted to Common Stock under this Article 10.

     SECTION 10.02 Exercise of Conversion Right; Issuance of Common Stock on Conversion; No
Adjustment for Interest or Dividends
.. In order to exercise the conversion right with respect to any Debentures in certificated form,
the Company must receive at the office or agency of the Company maintained for that purpose or, at
the option of such Holder, the Corporate Trust Office, such Debentures with the original or
facsimile of the form entitled “Conversion Notice” on the reverse thereof, duly completed and
manually signed, together with such Debentures duly endorsed for transfer, together with any other
required transfer documents, accompanied by the funds, if any, required by this Section 10.02.
Such notice shall also state the name or names (with address or addresses) in which the certificate
or certificates for shares of Common Stock which shall be issuable on such conversion shall be
issued, and shall be accompanied by transfer or similar taxes or duties, if required pursuant to
Section 10.07.

     In order to exercise the conversion right with respect to any interest in a Global Debenture,
the Holder must complete, or cause to be completed, the appropriate instruction form for conversion
pursuant to the Depositary’s book-entry conversion procedures; deliver, or cause to be delivered,
by book-entry delivery an interest in such Global Debenture; furnish appropriate endorsements and
transfer documents if required by the Company or the Trustee or conversion agent; and pay the
funds, if any, required by this Section 10.02 and any transfer or similar taxes or duties if
required pursuant to Section 10.07.

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     The cash and, if applicable, a certificate or certificates for the number of full shares of
Common Stock into which the Debentures are converted (and cash in lieu of fractional shares) will
be delivered to such Holder after satisfaction of the requirements for conversion set forth above,
in accordance with Section 10.12. In case any Debentures of a denomination greater than $1,000
shall be surrendered for partial conversion, and subject to Section 2.03, the Company shall execute
and the Trustee shall authenticate and deliver to the Holder of the Debentures so surrendered,
without charge to the Holder, a new Debenture or Debentures in authorized denominations in an
aggregate principal amount equal to the unconverted portion of the surrendered Debentures.

     Each conversion shall be deemed to have been effected as to any such Debentures (or portion
thereof) on the date on which the requirements set forth above in this Section 10.02 have been
satisfied as to such Debentures (or portion thereof) (the “Conversion Date”) and such Debentures
will be deemed to have been converted immediately prior to 5:00 p.m., New York City time, on the
Conversion Date. The Person in whose name any certificate or certificates for shares of Common
Stock shall be issuable upon such conversion shall be deemed to have become, on said date, the
holder of record of the shares represented thereby; provided that any
such surrender on any date when the stock transfer books of the Company shall be closed shall
constitute the Person in whose name the certificates are to be issued as the record holder thereof
for all purposes on the next succeeding day on which such stock transfer books are open.

     Any Debentures or portion thereof surrendered for conversion during the period from 5:00 p.m.,
New York City time, on the Record Date for any interest payment date to 5:00 p.m., New York City
time, on the Business Day preceding the applicable interest payment date shall be accompanied by
payment, in immediately available funds or other funds acceptable to the Company, of an amount
equal to the interest (excluding any Additional Interest) otherwise payable on such interest
payment date on the principal amount being converted; provided that no such payment need be made
(1) if a Holder converts its Debentures in connection with a redemption and the Company has
specified a redemption date that is after a Record Date and on or prior to the corresponding
interest payment date, (2) if a Holder converts its Debentures in connection with a Fundamental
Change and the Company has specified a Fundamental Change Repurchase Date that is after a Record
Date and on or prior to the corresponding interest payment date or (3) to the extent of any overdue
interest, if any overdue interest exists at the time of conversion with respect to such Debentures.
Except as provided above in this Section 10.02 and Section 10.05, no payment or other adjustment
shall be made for interest accrued on any Debentures converted or for dividends on any shares
issued upon the conversion of such Debentures as provided in this Article 10.

     Upon the conversion of an interest in a Global Debenture, the Trustee (or other conversion
agent appointed by the Company), or the custodian for the Global Debenture at the direction of the
Trustee (or other conversion agent appointed by the Company), shall make a notation on such Global
Debenture as to the reduction in the principal amount represented thereby. The Company shall
notify the Trustee in writing of any conversions of Debentures effected through any conversion
agent other than the Trustee.

     Upon the conversion of any Debentures, the accrued but unpaid interest attributable to the
period from the issue date of the Debentures to the Conversion Date, with respect to the

52

 

converted Debentures, shall not be cancelled, extinguished or forfeited, but rather shall be deemed to be
paid in full to the Holder thereof through delivery of the cash (including a cash payment in lieu
of fractional shares, if any) and shares of Common Stock, if any, in exchange for the Debentures
being converted pursuant to the provisions hereof.

     SECTION 10.03 Cash Payments in Lieu of Fractional Shares
.. No fractional shares of Common Stock or scrip certificates representing fractional shares shall
be issued upon conversion of Debentures. If more than one Debenture shall be surrendered for
conversion at one time by the same Holder, the number of full shares that shall be issuable upon
conversion shall be computed on the basis of the aggregate principal amount of the Debentures (or
specified portions thereof to the extent permitted hereby) so surrendered. If any fractional share
of stock would be issuable upon the conversion of any Debenture or Debentures, the Company shall
make an adjustment and payment therefor in cash to the Holder of Debentures at a price equal to the
Volume Weighted Average Price on the final Trading Day of the Conversion Settlement Averaging
Period.

     SECTION 10.04 Conversion Rate.

     (a) Each $1,000 principal amount of the Debentures shall be convertible into cash and the
number of shares of Common Stock, if any, based upon the Conversion Rate, which is subject to
adjustment as provided in this Section 10.04 and Section 10.05.

     (b) Subject to Section 10.13, if and only to the extent a Holder elects to convert Debentures
at any time following the date on which a Non-Stock Change of Control becomes effective (the
“Effective Date”) but before 5:00 p.m., New York City time, on the Business Day immediately
preceding the related Fundamental Change Purchase Date, the Company shall increase the Conversion
Rate applicable to such converted Debentures by a number of additional shares of Common Stock (the
“Additional Shares”) as set forth below provided that the Effective Date is prior to January 15,
2012. The number of Additional Shares shall be determined by reference to the table below, based on
the Effective Date and the price (the “Stock Price”) paid per share for the Common Stock in the
Non-Stock Change of Control. If holders of Common Stock receive only cash in the Non-Stock Change
of Control, the Stock Price shall be the cash amount paid per share. Otherwise, the Stock Price
shall be the average of the Closing Sale Prices of the Common Stock on the five Trading Days prior
to but not including the Effective Date of such Non-Stock Change of Control.

     The numbers of Additional Shares set forth in the table below shall be adjusted as of any date
on which the Conversion Rate is adjusted in the same manner in which the Conversion Rate is
adjusted. The Stock Prices set forth in the table below shall be adjusted, as of any date on which
the Conversion Rate is adjusted, to equal the Stock Price applicable immediately prior to such
adjustment multiplied by a fraction, of which

     (1) the numerator shall be the Conversion Rate immediately prior to the adjustment and

     (2) the denominator shall be the Conversion Rate as so adjusted.

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     The following table sets forth the Stock Price and number of Additional Shares by which the
Conversion Rate shall be increased:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stock Price
	Effective Date	 	$31.25	 	$43.44	 	$50.00	 	$60.00	 	$70.00	 	$80.00	 	$90.00	 	$100.00	 	$110.00	 	$120.00	 	$130.00	 	$140.00	 	$150.00
	 
	February 7, 2007
	 	 	8.9784	 	 	 	4.8489	 	 	 	3.6985	 	 	 	2.5904	 	 	 	1.9132	 	 	 	1.4713	 	 	 	1.1665	 	 	 	0.9467	 	 	 	0.7824	 	 	 	0.6560	 	 	 	0.5560	 	 	 	0.4752	 	 	 	0.4087	 
	January 15, 2008
	 	 	8.7084	 	 	 	4.4753	 	 	 	3.3328	 	 	 	2.2633	 	 	 	1.6321	 	 	 	1.2334	 	 	 	0.9656	 	 	 	0.7767	 	 	 	0.6383	 	 	 	0.5331	 	 	 	0.4511	 	 	 	0.3852	 	 	 	0.3312	 
	January 15, 2009
	 	 	8.3104	 	 	 	3.9441	 	 	 	2.8216	 	 	 	1.8184	 	 	 	1.2603	 	 	 	0.9264	 	 	 	0.7122	 	 	 	0.5673	 	 	 	0.4637	 	 	 	0.3865	 	 	 	0.3266	 	 	 	0.2789	 	 	 	0.2404	 
	January 15, 2010
	 	 	7.3614	 	 	 	2.4604	 	 	 	1.4202	 	 	 	0.6795	 	 	 	0.3801	 	 	 	0.2481	 	 	 	0.1824	 	 	 	0.1445	 	 	 	0.1194	 	 	 	0.1013	 	 	 	0.0876	 	 	 	0.0762	 	 	 	0.0665	 
	January 15, 2011
	 	 	7.2688	 	 	 	2.2644	 	 	 	1.2397	 	 	 	0.5475	 	 	 	0.2890	 	 	 	0.1839	 	 	 	0.1349	 	 	 	0.1076	 	 	 	0.0894	 	 	 	0.0763	 	 	 	0.0659	 	 	 	0.0577	 	 	 	0.0505	 
	January 15, 2012
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 

     If the Stock Price and Effective Date are not set forth on the table above and the Stock
Price is:

     (i) between two Stock Prices on the table or the Effective Date is between two days on
the table, the number of Additional Shares shall be determined by straight-line
interpolation between the number of Additional Shares of Common Stock set forth for the
higher and lower Stock Price and the two Effective Dates, as applicable, based on a 360-day
year;

     (ii) in excess of $150.00 per share (subject to adjustment in the same manner as and as
of any date on which the Stock Prices are adjusted in the table above), no Additional Shares
of Common Stock shall be issued upon conversion; or

     (iii) less than $31.25 per share (subject to adjustment in the same manner as and as of
any date on which the Stock Prices are adjusted in the table above), no Additional Shares
shall be issued upon conversion.

     Notwithstanding the foregoing, in no event will the Conversion Rate as adjusted pursuant to
this Section 10.04 exceed 32.0000 per $1,000 principal amount of the Debentures, subject to
adjustments in the same manner as and as of any date on which the numbers of Additional Shares set
forth in the above table are adjusted as set forth in the second paragraph of this Section
10.04(b).

     SECTION 10.05 Adjustment of Conversion Rate
.. The Conversion Rate shall be adjusted from time to time by the Company as follows:

     (a) In case the Company shall, at any time or from time to time while any of the Debentures
are outstanding, pay a dividend in shares of Common Stock or make a distribution in shares of
Common Stock to all or substantially all Holders of its outstanding shares of Common Stock (other
than a dividend or distribution upon a transaction to which Section 10.06 applies), then the
Conversion Rate in effect at the opening of business on the date following the Record Date fixed
for the determination of stockholders entitled to receive such dividend or other distribution shall
be increased by multiplying such Conversion Rate by a fraction:

54

 

     (1) the numerator of which shall be the sum of the number of shares of Common Stock
outstanding at the close of business on the Record Date fixed for the determination of
stockholders entitled to receive such dividend or other distribution plus the total number
of shares of Common Stock constituting such dividend or other distribution; and

     (2) the denominator of which shall be the number of shares of Common Stock outstanding
at the close of business on the Record Date fixed for such determination, such increase to
become effective immediately after the opening of business on the day following the Record
Date fixed for such determination. If any dividend or distribution of the type described in
this Section 10.05(a) is declared but not so paid or made, the Conversion Rate shall again
be adjusted to the Conversion Rate that would then be in effect if such dividend or
distribution had not been declared.

     (b) In case outstanding shares of Common Stock shall be subdivided into a greater number of
shares of Common Stock (other than upon a transaction to which Section 10.06
applies), the Conversion Rate in effect at the opening of business on the day following the
day upon which such subdivision becomes effective shall be proportionately increased, and
conversely, in case outstanding shares of Common Stock shall be combined into a smaller number of
shares of Common Stock (other than upon a transaction to which Section 10.06 applies), the
Conversion Rate in effect at the opening of business on the day following the day upon which such
combination becomes effective shall be proportionately reduced, such increase or reduction, as the
case may be, to become effective immediately after the opening of business on the day following the
day upon which such subdivision or combination becomes effective.

     (c) In case the Company shall issue rights or warrants to all or substantially all holders of
its outstanding shares of Common Stock (other than upon a transaction to which Section 10.06
applies) entitling them to purchase, for a period of up to 45 calendar days, shares of Common Stock
at a price per share less than the then Current Market Price, the Conversion Rate shall be
increased so that the same shall equal the rate determined by multiplying the Conversion Rate in
effect immediately prior to the Record Date fixed for determination of stockholders entitled to
receive such rights or warrants by a fraction,

     (1) the numerator of which shall be the number of shares of Common Stock outstanding at
the close of business on the Record Date fixed for determination of stockholders entitled to
receive such rights or warrants plus the total number of additional shares of Common Stock
offered for subscription or purchase, and

     (2) the denominator of which shall be the sum of the number of shares of Common Stock
outstanding at the close of business on the Record Date fixed for determination of
stockholders entitled to receive such rights or warrants plus the number of shares that the
aggregate offering price of the total number of shares so offered would purchase at the
Current Market Price.

     Such adjustment shall be successively made whenever any such rights or warrants are issued,
and shall become effective immediately after the opening of business on the day following the date
fixed for determination of stockholders entitled to receive such rights or

55

 

warrants; provided, that
no adjustment to the Conversion Rate shall be made if the Holder will otherwise participate in such
distribution without conversion as a result of holding the Debentures. To the extent that shares
of Common Stock are not delivered after the expiration of such rights or warrants, the Conversion
Rate shall be readjusted to the Conversion Rate that would then be in effect had the adjustments
made upon the issuance of such rights or warrants been made on the basis of delivery of only the
number of shares of Common Stock actually delivered. If such rights or warrants are not so issued,
the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in effect
if such date fixed for the determination of stockholders entitled to receive such rights or
warrants had not been fixed. In determining whether any rights or warrants entitle the Holders to
purchase shares of Common Stock at less than such Current Market Price, and in determining the
aggregate offering price of such shares of Common Stock, there shall be taken into account any
consideration received by the Company for such rights or warrants and any amount payable on
exercise or conversion thereof, the value of such consideration, if other than cash, to be
determined by the Board of Directors.

     (d) In case the Company shall, by dividend or otherwise, distribute to all or substantially
all holders of its outstanding shares of Common Stock shares of any class of capital stock of the
Company or evidences of its indebtedness or assets (including securities, but excluding (i) any
rights or warrants referred to in Section 10.05(c), (ii) any dividends or distributions in
connection with a transaction to which Section 10.06 applies, (iii) any dividends or distributions
paid exclusively in cash or (iv) any dividends or distributions referred to in Section 10.05(a))
(any of the foregoing hereinafter in this Section 10.05(d)) called the “Distributed Assets”), then,
in each such case, the Conversion Rate shall be increased so that the same shall be equal to the
rate determined by multiplying the Conversion Rate in effect on the Record Date with respect to
such distribution by a fraction,

     (1) the numerator of which shall be the Current Market Price; and

     (2) the denominator of which shall be the Current Market Price less the 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) on the Record Date of the portion of
the Distributed Assets so distributed applicable to one share of Common Stock, such
adjustment to become effective immediately prior to the opening of business on the day
following such Record Date; provided that if the then Fair Market Value (as so determined)
of the portion of the Distributed Assets so distributed applicable to one share of Common
Stock is equal to or greater than the Current Market Price or such Current Market Price
exceeds such Fair Market Value by less than $1.00, in lieu of the foregoing adjustment,
adequate provision shall be made so that the Holder of each Debenture shall have the right
to receive upon conversion the amount of Distributed Assets such Holder would have received
had such Holder converted such Debenture immediately prior to the Record Date; and provided,
further, that no adjustment to the Conversion Rate shall be made if the Holder will
otherwise participate in such distribution without conversion as a result of holding the
Debentures. Solely for purposes of the preceding sentence, the amount of Distributed Assets
the Holder of a Debenture would have received had such Holder converted such Debenture shall
be determined as if such conversion were effected solely into shares of Common Stock
(without giving effect to Section 10.12). If such

56

 

dividend or distribution is not so paid
or made, the Conversion Rate shall again be adjusted to be the Conversion Rate that would
then be in effect if such dividend or distribution had not been declared.

Notwithstanding the foregoing, in the event any such distribution consists of shares of Capital
Stock of one or more of the Company’s Subsidiaries to be traded in a securities market (a
“Spin-Off”), the Conversion Rate shall be increased so that the same shall be equal to the rate
determined by multiplying the Conversion Rate in effect immediately prior to the close of business
on the Record Date with respect to such distribution by a fraction:

     (1) the numerator of which shall be the Current Market Price of the Common Stock
determined for the period specified below, plus the Fair Market Value of the portion of the
Distributed Assets so distributed applicable to one share of Common Stock, determined as set
forth above, and

     (2) the denominator of which shall be the Current Market Price determined for the
period specified below;

and such increase shall become effective immediately prior to the opening of business on the day
following the last Trading Day of the Spin-Off Valuation Period (as defined below). For purposes of
this paragraph, the Fair Market Value of the securities to be distributed shall equal the average
of the Closing Sale Prices of such securities on the principal securities market on which such
securities are traded for the five consecutive Trading Days commencing on and including the sixth
day of trading of those securities after the effectiveness of the Spin-Off (the “Spin-Off Valuation
Period”), and the Current Market Price of the Common Stock shall be measured for the same period.
In the event, however, that an underwritten initial public offering of the securities in the
Spin-Off occurs simultaneously with the Spin-Off, Fair Market Value of the securities distributed
in the Spin-Off shall mean the initial public offering price of such securities and the Current
Market Price of the Common Stock shall mean the Closing Sale Price for the Common Stock on the same
Trading Day.

     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 10.05 (and
no adjustment to the Conversion Rate under this Section 10.05 will be required) until the
occurrence of the earliest Trigger Event, whereupon such rights and warrants shall be deemed to
have been distributed and an appropriate adjustment (if any is required) to the Conversion Rate
shall be made under this Section 10.05(d). If any such right or warrant, including any such
existing rights or warrants distributed prior to the date of this Indenture, are subject to events,
upon the occurrence of which such rights or warrants become exercisable to purchase different
securities, evidences of indebtedness or other assets, then the date of the occurrence of any and
each such event shall be deemed to be the date of distribution and record date with respect to new
rights or warrants with such rights (and a termination or expiration of the existing rights or
warrants without exercise by any of the holders thereof). In addition, in the event of any

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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 was counted for
purposes of calculating a distribution amount for which an adjustment to the Conversion Rate under
this Section 10.05 was made, (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 share redemption
or repurchase price received by a holder or holders of Common Stock with respect to such rights or
warrants (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 that shall have expired or been terminated without exercise by any holders thereof, the
Conversion Rate shall be readjusted as if such rights and warrants had not been issued.

     No adjustment of the Conversion Rate shall be made pursuant to this Section 10.05(d) in
respect of rights or warrants distributed or deemed distributed on any Trigger Event to the extent
that such rights or warrants are actually distributed or reserved by the Company for distribution
to Holders of Debentures upon conversion by such Holders of Debentures to Common Stock.

     (e) In case the Company shall pay a dividend or otherwise distribute to all holders of its
Common Stock a dividend or other distribution of exclusively cash excluding (x) any dividend or
distribution in connection with the liquidation, dissolution or winding up of the Company, whether
voluntary or involuntary and (y) any dividend or distribution in connection with a transaction to
which Section 10.06 applies), then the Conversion Rate shall be increased so that the same shall
equal the rate determined by multiplying the Conversion Rate in effect on the applicable Record
Date by a fraction,

     (1) the numerator of which shall be the Current Market Price; and

     (2) the denominator of which shall be the Current Market Price less the amount of the
cash distribution applicable to one share of Common Stock, such adjustment to be effective
immediately prior to the opening of business on the day following such Record Date; provided
that if the portion of the cash so distributed applicable to one share of Common Stock is
equal to or greater than the Current Market Price, in lieu of the foregoing adjustment,
adequate provision shall be made so that each Holder of Debentures shall have the right to
receive upon conversion the amount of cash such Holder would have received had such Holder
converted such Debenture immediately prior to the Record Date. Solely for purposes of the
preceding sentence, the amount of cash the Holder of a Debenture would have received had
such Holder converted such Debenture shall be determined as if such conversion were effected
solely into shares of Common Stock (without giving effect to Section 10.12). If such
dividend or distribution is not so paid or made, the Conversion Rate shall again be adjusted
to be the Conversion Rate that would then be in effect if such dividend or distribution had
not been declared.

     (f) In case a tender or exchange offer made by the Company or any Subsidiary for all or any
portion of the Common Stock shall expire and such tender or exchange offer (as amended

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upon the expiration thereof) shall require the payment to stockholders 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
time (the “Expiration Time”) tenders or exchanges may be made pursuant to such tender or exchange
offer (as it may be amended) exceeds the Closing Sale Price of a share of Common Stock on the
Trading Day next succeeding the Expiration Time, the Conversion Rate shall be increased so that the
same shall equal the rate determined by multiplying the Conversion Rate in effect immediately prior
to the Expiration Time by a fraction,

     (1) the numerator of which shall be the sum of (x) the Fair Market Value (determined as
aforesaid) of the aggregate consideration payable to stockholders whose shares are validly
tendered or exchanged and not withdrawn as of the Expiration Time and accepted for purchase
(the shares so accepted being referred to as the “Purchased Shares”) and (y) the product of
the number of shares of Common Stock outstanding (less
any Purchased Shares) at the Expiration Time and the Closing Sale Price of a share of
Common Stock on the Trading Day next succeeding the Expiration Time, and

     (2) the denominator of which shall be the number of shares of Common Stock outstanding
(including any Purchased Shares) at the Expiration Time multiplied by the Closing Sale Price
of a share of Common Stock on the Trading Day next succeeding the Expiration Time,

such adjustment to become effective immediately prior to the opening of business on the Business
Day following the Expiration Time. If the Company is obligated to purchase shares pursuant to any
such tender or exchange 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.

     (g) For purposes of this Section 10.05, the following terms shall have the meaning indicated:

     (i) “Current Market Price,” with respect to any issuance or distribution, means, except
as otherwise provided in Section 10.05(d), the average of the daily Closing Sale Prices per
share of Common Stock for the ten consecutive Trading Days immediately prior to the “ex”
date for such issuance or distribution requiring such computation; provided that if the “ex”
date (as hereinafter defined) for any event (other than the issuance or distribution
requiring such computation) that requires an adjustment to the Conversion Rate pursuant to
Section 10.05(a), (b), (c), (d), (e) or (f) occurs during such ten consecutive Trading Days,
the Closing Sale Price for each Trading Day prior to the “ex” date for such other event
shall be adjusted by dividing such Closing Sale Price by the same fraction by which the
Conversion Rate is so required to be multiplied as a result of such other event.

Notwithstanding the foregoing, whenever successive adjustments to the Conversion Rate are
called for pursuant to this Section 10.05, such adjustments shall be made to the Current
Market Price as may be necessary or appropriate to effectuate the intent of this

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Section
10.05 and to avoid unjust or inequitable results as determined in good faith by the Board of
Directors.

     (ii) “‘ex’ date”:

     (1) when used in this Article 10 with respect to any issuance or distribution, means
the first date on which the shares of Common Stock trade regular way on the relevant
exchange or in the relevant market from which the Closing Sale Price was obtained without
the right to receive such issuance or distribution;

     (2) when used in the proviso to Section 10.05(g)(i) with respect to any subdivision or
combination of shares of Common Stock, means the first date on which the shares of Common
Stock trade regular way on such exchange or in such market after the time at which such
subdivision or combination becomes effective; and

     (3) when used in the proviso to Section 10.05(g)(i) with respect to any tender or
exchange offer, means the first date on which the shares of Common Stock trade regular way
on such exchange or in such market after the Expiration Time of such offer.

     (iii) “Fair Market Value” shall mean the amount which a willing buyer would pay a
willing seller in an arm’s-length transaction.

     (iv) “Record Date” shall mean, with respect to any dividend, distribution or other
transaction or event in which the holders of Common Stock have the right to receive any
cash, securities or other property or in which the Common Stock (or other applicable
security) is exchanged for or converted into any combination of cash, securities or other
property, the date fixed for determination of stockholders entitled to receive such cash,
securities or other property (whether such date is fixed by the Board of Directors or by
statute, contract or otherwise).

     (v) “Trading Day” means any day that is scheduled to be a trading day on the primary
United States national securities exchange or market on which the Common Stock is listed,
admitted to trading or quoted on which (i) there is no Market Disruption Event and (ii) The
Nasdaq Global Select Market (or, if the Company’s common stock is not quoted on The Nasdaq
Global Select Market, the principal U.S. national or regional securities exchange on which
the Common Stock is listed or admitted to trading), is open for trading or, if the Common
Stock is not so listed, admitted for trading or quoted, any Business Day. A “Trading Day”
includes only those scheduled trading days that have a scheduled closing time of 4:00 p.m.
(New York City time) or the then standard closing time for regular trading on the relevant
exchange or market.

     (h) The Company may make such increases in the Conversion Rate, in addition to those required
by Section 10.05(a)-(f), as the Board of Directors considers to be advisable to avoid or diminish
any income tax to holders of Common Stock or rights to purchase 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.

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     In addition to the foregoing, to the extent permitted by applicable law, the Company from time
to time may increase the Conversion Rate by any amount for any period of time if the period is at
least 20 Business Days, the increase is irrevocable during the period and the Board of Directors
shall have made a determination that such increase would be in the best interests of the Company,
which determination shall be conclusive. Whenever the Conversion Rate is increased pursuant to the
preceding sentence, the Company shall mail to Holders of record of the Debentures a notice of the
increase, which notice will be given at least 15 days prior to the effectiveness of any such
increase, and such notice shall state the increased Conversion Rate and the period during which it
will be in effect.

     (i) No adjustment in the Conversion Rate shall be required unless such adjustment would
require an increase or decrease of at least one percent (1%) in such rate; provided that any
adjustments that by reason of this Section 10.05(i) are not required to be made shall be carried
forward and the Company shall make such carry forward adjustments, regardless of whether the
aggregate adjustment is less than 1%, (x) annually on the anniversary of the Closing Date and
otherwise (y)(1) five Business Days prior to the maturity of the Debentures (whether at stated
maturity or otherwise) or (2) prior to the redemption date or Repurchase Date or Fundamental Change
Repurchase Date, unless such adjustment has already been made. All calculations under this Article
10 shall be made by the Company and shall be made to the nearest cent or to the nearest one-ten
thousandth (1/10,000) of a share, as the case may be. No adjustment need be made for rights to
purchase Common Stock pursuant to a Company plan for reinvestment of dividends or interest or for
any issuance of Common Stock or convertible or exchangeable securities or rights to purchase Common
Stock or convertible or exchangeable securities. Interest will not accrue on any cash into which
the Debentures are convertible.

     (j) Whenever the Conversion Rate is adjusted as herein provided, the Company will issue a
press release containing the relevant information and make this information available on the
Company’s website or through another public medium as the Company may use at that time. In
addition, the Company shall promptly file with the Trustee and any conversion agent other than the
Trustee an Officers’ Certificate setting forth the Conversion Rate after such adjustment and
setting forth a brief statement of the facts requiring such adjustment. Unless and until a
responsible officer of the Trustee shall have received such Officers’ Certificate, the Trustee
shall not be deemed to have knowledge of any adjustment of the Conversion Rate and may assume that
the last Conversion Rate of which it has actual knowledge is still in effect. Promptly after
delivery of such certificate, the Company shall prepare a notice of such adjustment of the
Conversion Rate setting forth the adjusted Conversion Rate and the date on which each adjustment
becomes effective and shall mail such notice of such adjustment of the Conversion Rate to the
Holder of each Debentures at his last address appearing on the Register, within 20 calendar days
after execution thereof. Failure to deliver such notice shall not affect the legality or validity
of any such adjustment.

     (k) In any case in which this Section 10.05 provides that an adjustment shall become effective
immediately after (1) a record date for an event, (2) the date fixed for the determination of
stockholders entitled to receive a dividend or distribution pursuant to Section 10.05(a), (3) a
date fixed for the determination of stockholders entitled to receive rights or warrants pursuant to
Section 10.05(c), or (4) the Expiration Time for any tender or exchange offer pursuant to Section
10.05(f) (each a “Determination Date”), the Company may elect to defer until the occurrence of

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the applicable Adjustment Event (as hereinafter defined) (x) issuing to the Holder of any Debentures
converted after such Determination Date and before the occurrence of such Adjustment Event, the
additional shares of Common Stock, if any, or other securities issuable upon such conversion by
reason of the adjustment required by such Adjustment Event over and above the Common Stock, if any,
issuable upon such conversion before giving effect to such adjustment and (y) paying to such Holder
any amount in cash in lieu of any fractional share pursuant to Section 10.03. For purposes of this
Section 10.05(k), the term “Adjustment Event” shall mean:

     (i) in any case referred to in clause (1) hereof, the occurrence of such event,

     (ii) in any case referred to in clause (2) hereof, the date any such dividend or
distribution is paid or made,

     (iii) in any case referred to in clause (3) hereof, the date of expiration of such
rights or warrants, and

     (iv) in any case referred to in clause (4) hereof, the date a sale or exchange of
Common Stock pursuant to such tender or exchange offer is consummated and becomes
irrevocable.

     (l) For purposes of this Section 10.05, 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.

     (m) No adjustment to the Conversion Rate shall be made pursuant to this Section 10.05 if the
Holders of the Debentures may participate in the transaction that would otherwise give rise to
adjustment pursuant to this Section 10.05.

     SECTION 10.06 Effect of Reclassification, Consolidation, Merger or Sale
.. If any of the following events occur, namely:

	 	(a)	 	any reclassification or change of the outstanding Common Stock (other than a
change in par value, or from par value to no par value, or from no par value to par
value, or as a result of a subdivision or combination),
	 
	 	(b)	 	any consolidation, merger or binding share exchange of the Company with or into
another Person, or
	 
	 	(c)	 	any sale, lease, transfer, conveyance or other disposition of all or
substantially all of the Company’s assets and those of its Subsidiaries taken as a
whole to any other Person or Persons,

as a result of which holders of Common Stock shall be entitled to receive stock, other securities
or other property or assets (including cash or any combination thereof) with respect to or in
exchange for such Common Stock, in each case, the Company or the successor or purchasing

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corporation, as the case may be, shall execute with 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, if such supplemental indenture is then required to so comply) providing that each such
Debenture shall, without the consent of any Holders of Debentures, become convertible into a
Conversion Settlement Amount based on only the kind and amount of shares of stock and other
securities or property or assets (including cash or any combination thereof) (the “Applicable
Consideration”), as provided further below, that holders of shares of Common Stock received in such
reclassification, change, consolidation, merger, binding share exchange, sale, lease, transfer,
conveyance or other disposition, except that the conditions relating to conversion of Debentures
specified herein (including in Sections 10.01, 10.02 and 10.12) (modified as appropriate in the
good faith judgment of the Board of Directors to apply properly to the Applicable Consideration in
lieu of Common Stock) and the provisions of Section 10.12 relating to the settlement of the
conversion obligation upon conversion of Debentures shall
continue to apply following such transaction. In the event holders of Common Stock have the
opportunity to elect the form of consideration to be received in such transaction, the Applicable
Consideration shall consist of the consideration that a majority of the holders of Common Stock who
made such an election received in such transaction. The Company may not become a party to any such
transaction unless its terms are consistent with the foregoing. Such supplemental indenture shall
provide for adjustments that shall be as nearly equivalent as may be practicable to the adjustments
provided for in this Article 10, as determined in good faith by the Company or successor or
purchasing corporation. If, in the case of any such reclassification, change, consolidation,
merger, binding share exchange, sale, lease, transfer, conveyance or other disposition, the stock
or other securities and assets receivable thereupon by a holder of Common Stock includes shares of
stock or other securities and assets of a corporation other than the successor or purchasing
corporation, as the case may be, in such reclassification, change, consolidation, merger, binding
share exchange, sale, lease, transfer, conveyance or other disposition, then such supplemental
indenture shall also be executed by such other corporation and shall contain such additional
provisions to protect the interests of the Holders of the Debentures as the Board of Directors
shall reasonably consider necessary by reason of the foregoing, including to the extent practicable
the provisions providing for the conversion rights set forth in this Article 10. Upon the
effectiveness of such transaction, a Holder of Debentures shall thereafter have the right to
convert such Debentures, at the Conversion Rate in effect immediately prior to the effectiveness of
such transaction (subject to adjustment as provided in Section 10.04 and Section 10.05), only into
cash and units of Applicable Consideration (a “unit of Applicable consideration” being, for
purposes of this Indenture, the kind and amount of Applicable Consideration which the holder of one
share of Common Stock would have received in such transaction, determined as set forth above), as
provided for in accordance with Section 10.12.

     The Company shall cause notice of the execution of such supplemental indenture to be mailed to
each Holder, at the address of such Holder as it appears on the register of the Debentures
maintained by the Registrar, within 20 days after execution thereof. Failure to deliver such
notice shall not affect the legality or validity of such supplemental indenture.

     The above provisions of this Section 10.06 shall similarly apply to successive
reclassifications, changes, consolidations, mergers, binding share exchanges, sales, leases,
transfers, conveyances or other dispositions.

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     If this Section 10.06 applies to any event or occurrence, Section 10.05 shall not apply.
Notwithstanding this Section 10.06, if a Public Acquirer Change of Control occurs and the Company
elects to adjust its conversion obligation and the Conversion Rate pursuant to Section 10.13, the
provisions of Section 10.13 instead of this Section 10.06 shall apply to the transaction.

     SECTION 10.07 Taxes on Shares Issued
.. The issue of stock certificates on conversions of Debentures shall be made without charge to the
converting Holder of Debentures for any documentary, stamp or similar issue or transfer tax in
respect of the issue thereof. The Company shall not, however, be required to pay any such tax which
may be payable in respect of any transfer involved in the issue and delivery of stock in any name
other than that of the Holder of any Debentures converted, and the Company shall not
be required to issue or deliver any such stock certificate unless and until the Person or Persons
requesting the issue thereof shall have paid to the Company the amount of such tax or shall have
established to the satisfaction of the Company that such tax has been paid.

     SECTION 10.08 Reservation of Shares, Shares to be Fully Paid; Compliance with Governmental
Requirements; Listing of Common Stock
.. The Company shall provide, free from preemptive rights, out of its authorized but unissued shares
or shares held in treasury, sufficient shares of Common Stock to provide for the conversion of the
Debentures from time to time as such Debentures are presented for conversion.

     Before taking any action which would cause an adjustment increasing the Conversion Rate to an
amount that would cause the Conversion Price to be reduced below the then par value, if any, of the
shares of Common Stock issuable upon conversion of the Debentures, the Company will take all
corporate action which may, in the opinion of its counsel, be necessary in order that the Company
may validly and legally issue shares of such Common Stock at such adjusted Conversion Rate.

     The Company covenants that all shares of Common Stock which may be issued upon conversion of
Debentures will upon issue be fully paid and non-assessable by the Company and free from all taxes,
liens and charges with respect to the issue thereof.

     The Company covenants that, if any shares of Common Stock to be provided for the purpose of
conversion of Debentures hereunder require registration with or approval of any governmental
authority under any federal or state law before such shares may be validly issued upon conversion,
the Company will in good faith and as expeditiously as possible, to the extent then permitted by
the rules and interpretations of the Commission (or any successor thereto), endeavor to secure such
registration or approval, as the case may be.

     The Company further covenants that, if at any time the Common Stock shall be listed on any
national securities exchange or automated quotation system, the Company will, if permitted by the
rules of such exchange or automated quotation system, list and keep listed, so long as the Common
Stock shall be so listed on such exchange or automated quotation system, all Common Stock issuable
upon conversion of the Debentures; provided that if the rules of such exchange or automated
quotation system permit the Company to defer the listing of such Common Stock until the first
conversion of the Debentures into Common Stock in accordance with the provisions of this Indenture,
the Company covenants to list such Common Stock issuable upon conversion of

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the Debentures in
accordance with the requirements of such exchange or automated quotation system at such time.

     SECTION 10.09 Responsibility of Trustee
.. The Trustee and any other conversion agent shall not at any time be under any duty or
responsibility to any Holder of Debentures to determine the Conversion Rate or whether any facts
exist which may require any adjustment of the Conversion Rate, or with respect to the nature or
extent or calculation of any such adjustment when made, or with respect to the method employed, or
herein or in any supplemental indenture provided to be employed, in making the same. The Trustee
and any other conversion agent shall not be accountable with respect to the
validity or value (or the kind or amount) of any shares of Common Stock, or of any capital stock,
other securities or other assets or property, which may at any time be issued or delivered upon the
conversion of any Debentures; and the Trustee and any other conversion agent make no
representations with respect thereto. Neither the Trustee nor any conversion agent shall be
responsible for any failure of the Company to issue, transfer or deliver any shares of Common Stock
or stock certificates or other securities or property or cash upon the surrender of any Debentures
for the purpose of conversion or to comply with any of the duties, responsibilities or covenants of
the Company contained in this Article 10. Without limiting the generality of the foregoing, neither
the Trustee nor any conversion agent shall be under any responsibility to determine the correctness
of any provisions contained in any supplemental indenture entered into pursuant to Section 10.06
relating either to the kind or amount of shares of capital stock or other securities or other
assets or property (including cash) receivable by Holders of Debentures upon the conversion of
their Debentures after any event referred to in such Section 10.06 or to any adjustment to be made
with respect thereto, but, subject to the provisions of Section 9.01, may accept as conclusive
evidence of the correctness of any such provisions, and shall be protected in relying upon, the
Officers’ Certificate (which the Company shall be obligated to file with the Trustee prior to the
execution of any such supplemental indenture) with respect thereto.

     SECTION 10.10 Notice to Holders Prior to Certain Actions. In case:

	 	(a)	 	the Company shall declare a dividend (or any other distribution) on its Common
Stock that would require an adjustment in the Conversion Rate pursuant to Section
10.05; or
	 
	 	(b)	 	the Company shall authorize the granting to the holders of all or substantially
all of its Common Stock or rights or warrants to subscribe for or purchase any share of
any class or any other rights or warrants; or
	 
	 	(c)	 	of any reclassification or change of the Common Stock of the Company (other
than a subdivision or combination of its outstanding Common Stock, or a change in par
value, or from par value to no par value, or from no par value to par value), or of any
consolidation or merger or binding share exchange to which the Company is a party and
for which approval of any stockholders of the Company is required, or of the sale,
lease, transfer, conveyance or other disposition of all or substantially all of the
assets of the Company and those of its Subsidiaries taken as a whole; or

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

and, in the case of the events specified in clauses (a), (b) or (c), if the Debentures are
convertible at the time of or in connection with such event, the Company shall cause to be filed
with the Trustee and to be mailed to each Holder of Debentures at his address appearing on the
Register provided for in Section 2.05 of this Indenture, as promptly as possible but in any event
at least ten calendar days prior to the applicable date hereinafter specified, a notice stating (x)
the date on
which a record is to be taken for the purpose of such dividend, distribution or rights 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 or rights are to be determined, or (y) the date on which
such reclassification, change, consolidation, merger, binding share exchange, sale, transfer,
conveyance or other disposition, dissolution, liquidation or winding up is expected to become
effective or occur, and the date as of which it is expected that holders of Common Stock of record
shall be entitled to exchange their Common Stock for securities or other property deliverable upon
such reclassification, change, consolidation, merger, binding share exchange, sale, lease,
transfer, conveyance or other disposition, dissolution, liquidation or winding up. Failure to give
such notice, or any defect therein, shall not affect the legality or validity of such dividend,
distribution, reclassification, change, consolidation, merger, sale, transfer, dissolution,
liquidation or winding up.

     SECTION 10.11 Stockholder Rights Plans
.. If the rights provided for in any future rights plan adopted by the Company have separated from
the shares of Common Stock in accordance with the provisions of the applicable stockholder rights
agreement so that the Holders of the Debentures would not be entitled to receive any rights in
respect of Common Stock issuable upon conversion of the Debentures, the Conversion Rate will be
adjusted (and, if applicable readjusted) as provided in Section 10.05(d). If such rights have not
separated, any shares of Common Stock delivered upon the conversion of Debentures shall be
accompanied by such rights.

     SECTION 10.12 Settlement Upon Conversion
.. Upon any conversion of Debentures, the Company will deliver to converting Holders in respect of
each $1,000 principal amount of Debentures being converted, a “Conversion Settlement Amount” equal
to the sum of the Daily Settlement Amounts for each of the 20 Trading Days during the Conversion
Settlement Averaging Period, provided that in no event shall the Company issue upon conversion of
Debentures more than 19.7571 shares of Common Stock per $1,000 principal amount of Debentures,
subject to adjustments in the same manner as and as of any date on which the Conversion Rate is
adjusted.

     Subject to the limitations described above, “Daily Settlement Amount”, for each $1,000
principal amount of Debentures, for each of the 20 Trading Days during the Conversion Settlement
Averaging Period, shall consist of:

     (i) cash equal to the lesser of $50 and the Daily Conversion Value; and

     (ii) to the extent the Daily Conversion Value exceeds $50, a number of shares of Common
Stock (or, if the Conversion Settlement Amount is then based (x) on the

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Applicable
Consideration in accordance with Section 10.06, units of Applicable Consideration or (y) on
shares of Public Acquirer Common Stock in accordance with Section 10.13, shares of Public
Acquirer Common Stock) equal to, (A) the difference between the Daily Conversion Value and
$50, divided by (B) the Volume Weighted Average Price of the Common Stock (or, if the
Conversion Settlement Amount is then based (x) on the Applicable Consideration in accordance
with Section 10.06, a unit of the
Applicable Consideration or (y) on shares of Public Acquirer Common Stock in accordance
with Section 10.13, a share of the Public Acquirer Common Stock) for that day.

     “Daily Conversion Value” means, for any Trading Day, one-twentieth (1/20) of the product of
(1) the applicable Conversion Rate on that Trading Day and (2) the Volume Weighted Average Price of
the Common Stock (or, if the Conversion Settlement Amount is then based (x) on the Applicable
Consideration in accordance with Section 10.06, a unit of the Applicable Consideration or (y) on
shares of Public Acquirer Common Stock in accordance with Section 10.13, a share of the Public
Acquirer Common Stock) on such day. For the purposes of determining the Daily Conversion Value, the
following provisions shall apply: (i) if the Applicable Consideration includes securities for which
the price can be determined in a manner contemplated by the definition of “Volume Weighted Average
Price,” then the value of such securities shall be determined in accordance with the principles set
forth in such definition; (ii) if the Applicable Consideration includes other property (other than
securities as to which clause (i) applies or cash), then the value of such property shall be the
Fair Market Value of such property as determined by the Company’s Board of Directors in good faith;
and (iii) if the Applicable Consideration includes cash, then the value of such cash shall be the
amount thereof.

     The Conversion Settlement Amount will be delivered in cash and shares of Common Stock (or, if
the Conversion Settlement Amount is then based (x) on the Applicable Consideration in accordance
with Section 10.06, units of Applicable Consideration or (y) on shares of Public Acquirer Common
Stock in accordance with Section 10.13, shares of Public Acquirer Common Stock) to converting
Holders on the third Trading Day following the final Trading Day of the Conversion Settlement
Averaging Period.

     SECTION 10.13 Conversion After a Public Acquirer Change of Control.

     (a) In the event of a Public Acquirer Change of Control, the Company may, in lieu of adjusting
the Conversion Rate pursuant to Section 10.04(b) or 10.06, elect to adjust its conversion
obligation and the Conversion Rate such that from and after the Effective Date of such Public
Acquirer Change of Control, Holders of the Debentures shall be entitled, subject to the conditions
relating to conversion of Debentures specified herein (including Sections 10.01, 10.02 and 10.12))
to receive a Conversion Settlement Amount upon conversion of Debentures based on shares of Public
Acquirer Common Stock; and the Conversion Rate in effect immediately before the Public Acquirer
Change of Control shall be adjusted by multiplying it by a fraction:

     (1) the numerator of which shall be (A) in the case of a consolidation, merger or
binding share exchange, pursuant to which the Common Stock is converted solely into cash,
the value of such cash paid or payable per share of Common Stock or (B) in the

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case of any
other Public Acquirer Change of Control, the average of the Closing Sale Prices of the
Common Stock for the five consecutive Trading Days prior to but excluding the Effective Date
of such Public Acquirer Change of Control; and

     (2) the denominator of which shall be the average of the Closing Sale Prices of the
Public Acquirer Common Stock for the five consecutive Trading Days commencing on the Trading
Day next succeeding the Effective Date of such Public Acquirer Change of Control.

     (b) The Company shall notify Holders of its election by providing notice as set forth in
Section 10.04(b).

     (c) If the Company elects to make the adjustment to the Conversion Rate described in Section
10.13(a) in the event of a Public Acquirer Change of Control, (i) Holders of Debentures will not be
entitled to receive any Additional Shares pursuant to Section 10.04(b) as a result of such Public
Acquirer Change of Control; (ii) Section 10.06 will not apply to such transaction; and (iii) the
Company and the acquirer or other issuer of Public Acquirer Common Stock shall execute with 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, if such supplemental indenture is then
required to so comply) providing that such Debentures shall, without the consent of any Holders of
Debentures, be convertible into a Conversion Settlement Amount based on shares of Public Acquirer
Common Stock at the adjusted Conversion Rate as specified above (subject to the conditions relating
to conversion of Debentures specified herein (including Sections 10.01, 10.02 and 10.12)). Such
supplemental indenture shall provide for adjustments that shall be as nearly equivalent as may be
practicable to the adjustments provided for in this Article 10, as determined in good faith by the
Company or the Public Acquirer.

     SECTION 10.14 Limitations on Foreign Ownership
.. The shares of Common Stock issuable upon conversion of the Debentures are subject to limitations
on foreign ownership as and to the extent set forth in the certificate of incorporation and bylaws
of the Company. By reason of such limitations, upon conversion of the Debentures, as and to the
extent set forth in the certificate of incorporation and bylaws of the Company, a foreign holder of
Common Stock received upon such conversion will not receive or accrue any rights with respect to
any dividends or other distributions of assets declared payable or be entitled to vote with respect
to any matter submitted to stockholders and will be subject to having such shares redeemed by the
Company for cash or for promissory notes of the Company with maturities not to exceed ten years and
bearing interest at the then-applicable rate for U.S. treasury instruments of the same tenor. Each
Debentureholder, by accepting the same, (a) agrees to and shall be bound by such limitations and
(b) authorizes and directs the Trustee on his behalf to take such action as may be necessary or
appropriate to effectuate such limitations.

ARTICLE 11

MISCELLANEOUS

     SECTION 11.01 Trust Indenture Act Controls
.. If any provision of this Indenture limits, qualifies or conflicts with another provision which is
required to be included in this Indenture by the TIA, the required provision shall control.

68

 

     SECTION 11.02 Notices
.. Any notice or communication shall be in writing and delivered in person or mailed by first-class
mail addressed as follows:

if to the Company:

Trico Marine Services, Inc.

2401 Fountainview Drive, Suite 920

Houston, TX 77057

Attention: General Counsel

if to the Trustee:

Wells Fargo Bank, National Association

1445 Ross Avenue – 2nd Floor

Dallas, TX 75202-2812

Attention: Patrick Giordano

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

     Any notice or communication mailed to a Debentureholder shall be mailed to the Debentureholder
at the Debentureholder’s address as it appears on the Register of the Registrar and shall be
sufficiently given if so mailed within the time prescribed.

     Failure to mail a notice or communication to a Debentureholder or any defect in it shall not
affect its sufficiency with respect to other Debentureholders. If a notice or communication is
mailed in the manner provided above, it is duly given, whether or not the addressee receives it.

     Where this Indenture provides for notice in any manner, such notice may be waived in writing
by the Person entitled to receive such notice, either before or after the event, and such waiver
shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the
Trustee, but such filing shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.

     Notwithstanding any other provision of this Indenture or any Debenture, where this Indenture
or any Debenture provides for notice of any event (including any notice of redemption) to a Holder
of a Global Debenture (whether by mail or otherwise), such notice shall be sufficiently given if
given to the Depositary for such Debenture (or its designee), pursuant to the customary procedures
of such Depositary, not later than the latest date (if any), and not earlier than the earliest date
(if any), prescribed for the giving of such notice.

     SECTION 11.03 Communication by Debentureholders with Other Debentureholders
.. Debentureholders may communicate pursuant to TIA § 312(b) with other Debentureholders with
respect to their rights under this Indenture or the Debentures. The Company, the Trustee, the
Registrar and anyone else shall have the protection of TIA § 312(c).

69

 

     SECTION 11.04 Certificate and Opinion as to Conditions Precedent
.. Upon any request or application by the Company to the Trustee to take or refrain from taking 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
stating that, in the opinion of the signers, all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with; and

     (b) an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee stating
that, in the opinion of such counsel, all such conditions precedent have been complied with.

     SECTION 11.05 Statements Required in Certificate or Opinion
.. Each certificate or opinion with respect to compliance with a covenant or condition provided for
in this Indenture shall include:

     (a) a statement that the individual 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 individual, he 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 complied with; and

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

     In any case where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be certified by, or covered by
the opinion of, only one such Person, or that they be so certified or covered by only one document,
but one such Person may certify or give an opinion as to such matters in one or several documents.

     Any certificate or opinion of an Officer of the Company may be based, insofar as it relates to
legal matters, upon a certificate of opinion of, or representations by, counsel. Any such
certificate or Opinion of Counsel may be based, and may state that it is so based, insofar as it
relates to factual matters, upon a certificate or opinion of, or representations by, an Officer or
Officers of the Company.

     Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions, notices or other instruments under this Indenture,
they may, but need not, be consolidated and form one instrument.

     SECTION 11.06 When Debentures Disregarded
.. In determining whether the Debentureholders of the required principal amount of Debentures have
concurred in any direction, waiver or consent, Debentures owned by the Company or by any Person
directly or

70

 

indirectly controlling or controlled by or under direct or indirect common control with
the Company shall be disregarded and deemed not to be outstanding, except that, for the purpose of
determining whether the Trustee shall be protected in relying on any such direction, waiver or
consent, only Debentures which a Trust Officer of the Trustee knows are so owned shall be so
disregarded. Subject to the foregoing, only Debentures outstanding at the time shall be considered
in any such determination.

     SECTION 11.07 Rules by Trustee, Paying Agent and Registrar
.. The Trustee may make reasonable rules for action by or a meeting of Debentureholders. The
Registrar and the Paying Agent may make reasonable rules for their functions.

     SECTION 11.08 Legal Holidays
.. A “Legal Holiday” is a Saturday, a Sunday or a day on which banking institutions are not required
to be open in the State of New York or Houston, Texas. If a payment date is a Legal Holiday,
payment shall be made on the next succeeding day that is not a Legal Holiday, and no interest shall
accrue for the intervening period. If a regular record date is a Legal Holiday, the record date
shall not be affected.

     SECTION 11.09 Governing Law
.. THIS INDENTURE AND THE DEBENTURES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK.

     SECTION 11.10 No Interpretation of or by 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 11.11 Successors
.. All agreements of the Company in this Indenture and the Debentures shall bind its successors. All
agreements of the Trustee in this Indenture shall bind its successors.

     SECTION 11.12 Multiple 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. One signed copy is enough to prove
this Indenture.

     SECTION 11.13 Table of Contents; Headings
.. The table of contents, cross-reference sheet and headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not intended to be considered a
part hereof and shall not modify or restrict any of the terms or provisions hereof.

     SECTION 11.14 Indenture and Debentures Solely Corporate Obligations
.. No recourse for the payment of the principal of or, premium, if any, or interest on any
Debentures or for any claim based upon any Debentures or otherwise in respect thereof, and no
recourse under or upon any obligation, covenant or agreement of the Company in this Indenture or in
any supplemental indenture or in any Debentures or because of the creation of any indebtedness
represented thereby shall be had against any incorporator, stockholder, member, manager, employee,
agent, officer, director or subsidiary, as such, past, present or future, of the Company or any of
the Company’s subsidiaries or of any successor thereto, either directly or through the Company or
any of the Company’s subsidiaries or any successor thereto, whether by virtue of

71

 

any constitution,
statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being
expressly understood that all such liability is hereby expressly waived and released as a condition
of, and as a consideration for, the execution of this Indenture and the issue of the Debentures.

     SECTION 11.15 Severability
.. In case any provision in this Indenture or in the Debentures is invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions will not in
any way be affected or impaired thereby.

     SECTION 11.16 Benefits of Indenture
.. Nothing in this Indenture or in the Debentures, express or implied, shall give to any Person,
other than the parties hereto and their successors hereunder and the Holders of Debentures, any
benefit or any legal or equitable right, remedy or claim under this Indenture or the Debentures.

     SECTION 11.17 Calculations
.. Except as otherwise provided herein, the Company shall be responsible for making all
calculations called for under this Indenture and the Debentures. The Company or its agents shall
make all such calculations in good faith and, absent manifest error, its calculations will be final
and binding on the Holders. The Company upon request shall provide a schedule of its calculations
to the Trustee, and the Trustee shall be entitled to rely conclusively upon the accuracy of the
Company’s calculations without independent verification. The Trustee shall deliver a copy of such
schedule to any Holder upon the request of such Holder.

[Signature Page Follows]

72

 

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

	 	 	 	 	 	 	 
	 	 	TRICO MARINE SERVICES, INC., as Issuer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Patrick Giordano
	 	 
	 

	 	Title:
	 	Vice President, Senior Relationship	 	 
	 

	 	 	 	Manager (Corporate Trust Services)	 	 

 

 

EXHIBIT A

[FORM OF FACE OF DEBENTURE]

[Global Debentures Legend]

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, 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 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.

     TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF
THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET
FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

[Restricted Debentures Legend]

     THE SECURITY EVIDENCED BY THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT OF 1933”), OR ANY STATE SECURITIES LAWS, AND MAY NOT BE
OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ACQUISITION HEREOF OR A
BENEFICIAL INTEREST HEREIN, THE HOLDER:

(1) REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER
THE SECURITIES ACT OF 1933;

(2) AGREES THAT IT WILL NOT PRIOR TO THE DATE TWO YEARS AFTER THE DATE OF ORIGINAL ISSUANCE
OF THE 3.00% SENIOR CONVERTIBLE DEBENTURES DUE 2027 OF TRICO MARINE SERVICES, INC. (THE
“COMPANY”) RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY OR THE COMMON STOCK
THAT MAY BE ISSUABLE UPON CONVERSION OF SUCH SECURITY EXCEPT (A) TO THE COMPANY OR ANY
SUBSIDIARY THEREOF, (B) TO A PERSON IT REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL
BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT OF 1933, (C) PURSUANT TO A
REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT OF 1933
AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER, OR (D) PURSUANT TO ANY
OTHER

A-F-1

 

EXEMPTION FROM REGISTRATION REQUIREMENTS UNDER THE SECURITIES ACT OF 1933, INCLUDING UNDER
RULE 144, IF AVAILABLE, SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH
TRANSFER, TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATIONS AND/OR OTHER
INFORMATION SATISFACTORY TO THE COMPANY AND THE TRUSTEE; AND

(3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THE SECURITY EVIDENCED HEREBY IS
TRANSFERRED (OTHER THAN A TRANSFER PURSUANT TO CLAUSE 2(A) AND 2(C) ABOVE) A NOTICE
SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.

A-F-2

 

	 	 	 
	No.                    

	 	$                    

3.00% Senior Convertible Debenture due 2027

CUSIP No.:                    

     Trico Marine Services, Inc., a Delaware corporation, promises to pay to
[                                        ]1, principal sum of                     , Dollars [, as revised by the
Schedule of Increases or Decreases in Global Debenture attached hereto,]1 on January 15,
2027.

     Interest Payment Dates: January 15 and July 15.

     Record Dates: January 1 and July 1.

     Reference is made to the further provisions of this Debenture set forth on the reverse hereof,
including, without limitation, provisions giving the Holder of this Debenture the right to convert
this Debenture into cash and, if applicable, Common Stock, on the terms and subject to the
limitations referred to on the reverse hereof and as more fully specified in the Indenture. Such
further provisions shall for all purposes have the same effect as though fully set forth at this
place.

     This Debenture shall not be valid or become obligatory for any purpose until the certificate
of authentication hereon shall have been manually signed by the Trustee or a duly authorized
authenticating agent under the Indenture.

     IN WITNESS WHEREOF, Trico Marine Services, Inc. has caused this instrument to be duly
executed.

	 	 	 	 	 	 	 
	 	 	TRICO MARINE SERVICES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 

Dated:

 

			
	1	 	Use the Schedule of Increases and Decreases
language if Debenture is in Global form.

 

 

	 	 	 	 	 
	TRUSTEE’S CERTIFICATE OF	 	 
	AUTHENTICATION	 	 
	WELLS FARGO BANK, NATIONAL	 	 
	ASSOCIATION,	 	 
	 

	 	as Trustee, certifies that this is
one of the Debentures referred to in the Indenture.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Authorized Signatory	 	 

 

 

[FORM OF REVERSE SIDE OF DEBENTURE]

3.00% Senior Convertible Debenture due 2027

1. Interest

     (a) TRICO MARINE SERVICES, INC., a Delaware corporation (such corporation, and its successors
and assigns under the Indenture hereinafter referred to, being herein called the “Company”),
promises to pay interest on the principal amount of this Debenture at the rate of 3.00 percent per
annum. The Company will pay interest semiannually on January 15 and July 15 of each year commencing
on July 15, 2007. Interest on the Debentures will accrue from the most recent date to which
interest has been paid or, if no interest has been paid, from February 7, 2007. Interest will be
computed on the basis of a 360-day year of twelve 30-day months. If a payment date is not a
Business Day, payment will be made on the next succeeding Business Day, and no additional interest
will accrue in respect of such payment by virtue of the payment being made on such later date.

     (b) Additional Interest. The Holder of this Debenture shall be entitled to receive
Additional Interest as and to the extent provided in the Indenture and that certain Registration
Rights Agreement, dated as of February 7, 2007, between the Company and Lehman Brothers Inc., as
representative of the Initial Purchasers named therein.

2. Method of Payment

     The Company will pay interest on the Debentures (except defaulted interest) to the Persons who
are registered Holders of Debentures at the close of business on the July 1 and January 1 next
preceding the interest payment date even if Debentures are canceled after the record date and on or
before the interest payment date, except as otherwise provided in the Indenture. Holders must
surrender Debentures to a Paying Agent to collect principal payments. The Company will pay
principal and interest in money of the United States of America that at the time of payment is
legal tender for payment of public and private debts. The Company shall pay interest (i) on any
Global Debentures by wire transfer of immediately available funds to the account of the Depositary
or its nominee, (ii) on any Debentures in certificated form having a principal amount of less than
$2,000,000, by check mailed to the address of the Person entitled thereto as it appears in the
Register, provided, however, that at maturity interest will be payable at the office of the Company
maintained by the Company for such purposes, which shall initially be an office or agency of the
Trustee (as defined below) and (iii) on any Debentures in certificated form having a principal
amount of $2,000,000 or more, by wire transfer in immediately available funds at the election of
the Holder of such Debentures duly delivered to the Trustee at least five Business Days prior to
the relevant interest payment date, provided, however, that at maturity interest will be payable at
the office of the Company maintained by the Company for such purposes in Dallas, Texas, which shall
initially be an office or agency of the Trustee.

3. Paying Agent and Registrar

     Initially, Wells Fargo Bank, National Association (the “Trustee”), will act as Paying Agent,
Registrar and conversion agent. The Company may appoint and change any Paying

A-R-1

 

Agent, Registrar or co-registrar or conversion agent without notice. The Company or any of its
domestically organized wholly owned Subsidiaries may act as Paying Agent or Registrar or
co-registrar.

4. Indenture

     The Company issued the Debentures under an Indenture dated as of February 7, 2007 (the
“Indenture”), between the Company and the Trustee. The terms of the Debentures include those
stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture
Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the date of the Indenture (the “TIA”).
Terms defined in the Indenture and not defined herein have the meanings ascribed thereto in the
Indenture (except as specifically provided in Section 1(b) hereof). The Debentures are subject to
all such terms, and Debentureholders are referred to the Indenture and the TIA for a statement of
those terms.

     The Debentures are senior unsecured obligations of the Company. This Debenture is one of the
Debentures referred to in the Indenture initially issued in an aggregate principal amount of
$125,000,000 (or, if the option of the Initial Purchasers to purchase additional Debentures is
exercised , such greater amount up to $150,000,000) plus (ii) such additional aggregate principal
amount of Debentures as may be issued from time to time as Additional Debentures in accordance with
such Section 2.14).

5. Optional Redemption

     The Debentures will not be redeemable at the option of the Company prior to January 15, 2012.
At any time on or after January 15, 2012, the Debentures will be redeemable at the option of the
Company, in whole or in part from time to time, on not less than 30 calendar days’ nor more than 60
calendar days’ prior notice, at a redemption price set forth below, plus accrued and unpaid
interest to the redemption date (subject to the right of Holders of record on the relevant record
date to receive interest due on the relevant interest payment date).

     The redemption price for the Debentures, expressed as a percentage of principal amount, is as
follows for the periods set forth below:

	 	 	 	 	 
	 	 	Redemption
	Period	 	Price
	 
	 	 	 	 
	January 15, 2012 through January 14, 2013
	 	 	100.8571	%
	 
	 	 	 	 
	January 15, 2013 through January 14, 2014
	 	 	100.4286	%
	 
	 	 	 	 
	After January 14, 2014
	 	 	100.0000	%

6. Notice of Redemption

     Notice of redemption will be mailed by first-class mail at least 30 calendar days but not more
than 60 calendar days before the redemption date to each Holder of Debentures to be redeemed at his
or her registered address. Debentures in denominations larger than $1,000 may

A-R-2

 

be redeemed in part but only in whole multiples of $1,000. If money sufficient to pay the
redemption price of and accrued interest on all Debentures (or portions thereof) to be redeemed on
the redemption date is deposited with the Paying Agent on or before the redemption date and certain
other conditions are satisfied, on and after such date interest ceases to accrue on such Debentures
(or such portions thereof) called for redemption.

7. Repurchase of Debentures at the Option of Debentureholders

     If a Fundamental Change occurs at any time prior to maturity of the Debentures, this Debenture
will be subject to a repurchase, at the option of the Holder, on a Fundamental Change Repurchase
Date, specified by the Company, that is not less than 20 calendar days nor more than 35 calendar
days after notice thereof, at a repurchase price equal to 100% of the principal amount hereof,
together with accrued and unpaid interest on this Debenture to, but excluding, the Fundamental
Change Repurchase Date; provided that if such Fundamental Change Repurchase Date falls after a
record date and on or prior the corresponding interest payment date, the accrued and unpaid
interest shall be payable to the holder of record of this Debenture on the preceding July 15 or
January 15, as the case may be. For Debentures to be so repurchased at the option of the Holder,
the Holder must deliver to the Paying Agent in accordance with the terms of the Indenture, the
Repurchase Notice containing the information specified by the Indenture, together with such
Debentures, duly endorsed for transfer, or (if the Debentures are Global Debentures) book-entry
transfer of the Debentures, prior to 5:00 p.m., New York City time, on the Fundamental Change
Repurchase Date.

     Subject to the terms and conditions of the Indenture, each Holder shall have the right, at
such Holder’s option, to require the Company to repurchase all or any portion of the Debentures
held by such Holder, on January 15, 2014, January 15, 2017 and January 15, 2022 at a repurchase
price equal to 100% of the principal amount of this Debenture, together with any accrued and unpaid
interest on this Debenture to, but excluding, the Repurchase Date, as provided in the Indenture;
provided that if such Repurchase Date falls after a record date and on or prior the corresponding
interest payment date, the accrued and unpaid interest shall be payable to the holder of record of
this Debenture on the preceding July 15 or January 15, as the case may be. To exercise such right,
a Holder shall deliver to the Paying Agent the Repurchase Notice containing the information
specified by the Indenture, together with the Debentures, duly endorsed for transfer, or (if the
Debentures are Global Debentures) book-entry transfer of the Debentures, at any time during the
period from 9:00 a.m., New York City time, on the date that is 20 Business Days prior to the
applicable Repurchase Date to 5:00 p.m., New York City time, on the applicable Repurchase Date.

     Holders have the right to withdraw any Repurchase Notice by delivering to the Paying Agent a
written notice of withdrawal at any time prior to 5:00 p.m., New York City time, on the Fundamental
Change Repurchase Date or the Repurchase Date, as applicable, all as provided in the Indenture.

8. Conversion

     Subject to and upon compliance with the provisions of the Indenture, the Holder hereof has the
right, at its option, to convert each $1,000 principal amount of this Debenture into cash

A-R-3

 

and, if applicable, Common Stock based on a Conversion Rate of 23.0216 shares of Common Stock
per $1000 principal amount of Debentures (equivalent to a Conversion Price of approximately $43.44
per share), as the same may be adjusted pursuant to the terms of the Indenture. As specified in
the Indenture, upon conversion, the Company will pay cash and shares of Common Stock, if any, based
on a Daily Conversion Value (as defined in the Indenture) calculated on a proportionate basis for
each day of the 20 Trading-Day Conversion Settlement Averaging Period (as defined in the
Indenture), subject to a maximum of 19.7571 shares of Common Stock per $1,000 principal amount of
Debentures, subject to adjustments as specified in the Indenture.

     If and only to the extent Holders elect to convert the Debentures in connection with a
Non-Stock Change of Control (as defined in the Indenture), the Company may be required to increase
the Conversion Rate applicable to such converting Debentures; provided that in the case of a
Non-Stock Change of Control constituting a Public Acquirer Change of Control (as defined in the
Indenture), the Company may, in lieu of increasing the Conversion Rate, elect to adjust the
conversion obligation and the Conversion Rate such that from and after the effective date of such
Public Acquirer Change of Control, Holders of the Debentures will be entitled to convert their
Debentures (subject to the satisfaction of certain conditions) into a number of shares of Public
Acquirer’s Common Stock (as defined in the Indenture) determined as set forth in the Indenture.

     If this Debenture (or portion hereof) is surrendered for conversion during the period from the
5:00 p.m., New York City time, on any applicable Record Date for the payment of interest to 5:00
p.m., New York City time, on the Business Day preceding the corresponding interest payment date,
this Debenture (or portion hereof being converted) must be accompanied by payment, in immediately
available funds or other funds acceptable to the Company, of an amount equal to the interest
(excluding any Additional Interest) otherwise payable on such interest payment date on the
principal amount being converted; provided that no such payment shall be required (1) if the Holder
surrenders this Debenture for conversion in connection with a redemption and the Company has
specified a redemption date that is after a Record Date and on or prior to the corresponding
interest payment date, (2) if the Holder surrenders this Debenture in connection with a Fundamental
Change and the Company has specified a Fundamental Change Repurchase Date that is after a Record
Date and on or prior to the corresponding interest payment date or (3) to the extent of any overdue
interest, if any, existing at the time of conversion with respect to this Debenture.

     No fractional shares will be issued upon any conversion of Debentures, but an adjustment and
payment in cash will be made, as provided in the Indenture, in respect of any fraction of a share
which would otherwise be issuable upon the surrender of any Debentures or Debentures for
conversion.

     A Debenture in respect of which a Holder is exercising its right to require repurchase may be
converted only if such Holder validly withdraws its election to exercise such right to require
repurchase in accordance with the terms of the Indenture.

A-R-4

 

9. Denominations, Transfer, Exchange

     The Debentures are in registered form without coupons in denominations of $1,000 and whole
multiples of $1,000. A Debentureholder may transfer or exchange Debentures in accordance with the
Indenture. Upon any transfer or exchange, the Registrar and the Trustee may require a
Debentureholder, among other things, to furnish appropriate endorsements or transfer documents and
to pay any taxes required by law or permitted by the Indenture. The Registrar need not issue,
register the transfer of, or exchange any Debentures during the period of 15 days before the
mailing of the notice of redemption, or register the transfer of or exchange any Debentures so
selected for redemption, in whole or in part, except the unredeemed portion of any Debentures being
redeemed in part.

10. Persons Deemed Owners 

     The registered Holder of this Debenture may be treated as the owner of it for all purposes.

11. Unclaimed Money

     Subject to any applicable abandoned property law, the Trustee and the Paying Agent shall pay
to the Company upon written request any money held by them for the payment of principal or interest
and any shares of Common Stock or other property due in respect of converted Debentures that
remains unclaimed for two years, and, thereafter, Debentureholders entitled to the money and/or
securities must look to the Company for payment as general creditors.

12. Amendment, Waiver

     Subject to certain exceptions set forth in the Indenture, (i) the Indenture or the Debentures
may be amended without prior notice to any Debentureholder but with the written consent of the
Holders of at least a majority in aggregate principal amount of the outstanding Debentures and (ii)
any default or noncompliance with any provision may be waived with the written consent of the
Holders of at least a majority in principal amount of the outstanding Debentures. In certain
circumstances set forth in the Indenture, the Company and the Trustee may amend the Indenture or
the Debentures without the consent of any Holder of Debentures.

13. Defaults and Remedies

     If an Event of Default occurs (other than an Event of Default relating to certain events of
bankruptcy, insolvency or reorganization) and is continuing, the Trustee or the Holders of at least
25% in principal amount of the outstanding Debentures may declare the principal of and accrued but
unpaid interest on all the Debentures to be due and payable, except as provided in the Indenture.
If an Event of Default relating to certain events of bankruptcy, insolvency or reorganization
occurs, the principal of and interest on all the Debentures will become immediately due and payable
without any declaration or other act on the part of the Trustee or any Debentureholders. Under
certain circumstances, the Holders of a majority in principal amount of the outstanding Debentures
may rescind any such acceleration with respect to the Debentures and its consequences. No
reference herein to the Indenture and no provision of this Debenture or of the Indenture shall
impair, as among the Company and the Holder of the

A-R-5

 

Debentures, the obligation of the Company, which is absolute and unconditional, to pay the
principal of, premium, if any, on and interest on this Debenture at the place, at the respective
times, at the rate and in the coin or currency herein and in the Indenture prescribed or to convert
the Debenture as provided in the Indenture.

14. Trustee Dealings with the Company

     Subject to certain limitations imposed by the TIA, the Trustee under the Indenture, in its
individual or any other capacity, may become the owner or pledgee of Debentures and may otherwise
deal with and collect obligations owed to it by the Company or its Affiliates and may otherwise
deal with the Company or its Affiliates with the same rights it would have if it were not Trustee.

15. Indenture and Debentures Solely Corporate Obligations

     No recourse for the payment of the principal of or, premium, if any, or interest on any
Debentures or for any claim based upon any Debentures or otherwise in respect thereof, and no
recourse under or upon any obligation, covenant or agreement of the Company in the Indenture or in
any supplemental indenture or in any Debentures or because of the creation of any indebtedness
represented thereby shall be had against any incorporator, stockholder, member, manager, employee,
agent, officer, director or subsidiary, as such, past, present or future, of the Company or any of
the Company’s subsidiaries or of any successor thereto, either directly or through the Company or
any of the Company’s subsidiaries or any successor thereto, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being
expressly understood that all such liability is hereby expressly waived and released as a condition
of, and as a consideration for, the execution of the Indenture and the issue of the Debentures.

16. Authentication

     This Debenture shall not be valid until an authorized signatory of the Trustee (or an
authenticating agent) manually signs the certificate of authentication on the other side of this
Debenture.

17. Abbreviations

     Customary abbreviations may be used in the name of a Debentureholder or an assignee, such as
TEN COM (=tenants in common), TEN ENT (=tenants by the entireties), JT TEN (=joint tenants with
rights of survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift
to Minors Act).

18. GOVERNING LAW

     THIS DEBENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK.

A-R-6

 

19. CUSIP and ISIN Numbers

     Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Company has caused CUSIP and ISIN numbers to be printed on the Debentures and has
directed the Trustee to use CUSIP and ISIN numbers in notices of redemption as a convenience to
Debentureholders. No representation is made as to the accuracy of such numbers either as printed on
the Debentures or as contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

20. Limitations on Foreign Ownership.

     The shares of Common Stock issuable upon conversion of the Debentures are subject to
limitations on foreign ownership as and to the extent set forth in the certificate of incorporation
and bylaws of the Company. By reason of such limitations, upon conversion of the Debentures, as
and to the extent set forth in the certificate of incorporation and bylaws of the Company, a
foreign holder of Common Stock received upon such conversion will not receive or accrue any rights
with respect to any dividends or other distributions of assets declared payable or be entitled to
vote with respect to any matter submitted to stockholders and will be subject to having such shares
redeemed by the Company for cash or for promissory notes of the Company with maturities not to
exceed ten years and bearing interest at the then-applicable rate for U.S. treasury instruments of
the same tenor. Each Debentureholder, by accepting the same, (a) agrees to and shall be bound by
such limitations and (b) authorizes and directs the Trustee on his behalf to take such action as
may be necessary or appropriate to effectuate such limitations.

     The Company will furnish to any Holder of Debentures upon written request and without charge
to the Holder a copy of the Indenture.

A-R-7

 

CONVERSION NOTICE

TO: TRICO MARINE SERVICES, INC. and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee

     The undersigned registered owner of this Debenture hereby irrevocably exercises the option to
convert this Debenture, or the portion thereof (which is $1,000 or a multiple thereof) below
designated, into, cash and shares of Common Stock of Trico Marine Services, Inc., if any, in
accordance with the terms of the Indenture referred to in this Debenture, and directs that the
check in payment for cash and the shares, if any, issuable and deliverable upon such conversion,
deliverable upon conversion or for fractional shares and any Debentures representing any
unconverted principal amount hereof, be issued and delivered to the registered Holder hereof unless
a different name has been indicated below. Capitalized terms used herein but not defined shall have
the meanings ascribed to such terms in the Indenture. If shares or any portion of this Debenture
not converted are to be issued in the name of a person other than the undersigned, the undersigned
will provide the appropriate information below and pay all taxes or duties payable with respect
thereto. Any amount required to be paid by the undersigned on account of interest accompanies this
Debenture.

	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 
	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Signature(s)	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Signature(s) must be guaranteed by an “eligible	 	 
	 

	 	 	 	 	 	guarantor institution” meeting the requirements of	 	 
	 

	 	 	 	 	 	the Registrar, which requirements include	 	 
	 

	 	 	 	 	 	membership or participation in the Security Transfer	 	 
	 

	 	 	 	 	 	Agent Medallion Program (“STAMP”) or such other	 	 
	 

	 	 	 	 	 	“signature guarantee program” as may be	 	 
	 

	 	 	 	 	 	determined by the Registrar in addition to, or in	 	 
	 

	 	 	 	 	 	substitution for, STAMP, all in accordance with the	 	 
	 

	 	 	 	 	 	Securities Exchange Act of 1934, as amended.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Signature Guarantee	 	 

 

 

     Fill in the registration of shares of Common Stock, if any, if to be issued, and Debentures if
to be delivered, and the person to whom cash, if any, and payment for fractional shares is to be
made, if to be made, other than to and in the name of the registered Holder:

	 
	Please print name and address

	 

	(Name)

	 

	(Street Address)

	 

	(City, State and Zip Code)

	 

	Principal amount to be converted

	(if less than all):

	 

	$

	 

	Social Security or Other Taxpayer

	Identification Number:

NOTICE: The signature on this Conversion Notice must correspond with the name as written upon the
face of the Debentures in every particular without alteration or enlargement or any change
whatever.

 

 

REPURCHASE NOTICE

TO: TRICO MARINE SERVICES, INC. and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee

     The undersigned registered owner of this Debenture hereby irrevocably acknowledges receipt of
a notice from Trico Marine Services, Inc. (the “Company”) regarding the right of Holders to elect
to require the Company to repurchase the Debentures and requests and instructs the Company to repay
the entire principal amount of this Debenture, or the portion thereof (which is $1,000 or an
integral multiple thereof) below designated, in accordance with the terms of the Indenture at the
price of 100% of such entire principal amount or portion thereof, together with, except as provided
in the Indenture, accrued and unpaid interest to, but excluding, the Repurchase Date or the
Fundamental Change Repurchase Date, as the case may be, to the registered Holder hereof.
Capitalized terms used herein but not defined shall have the meanings ascribed to such terms in the
Indenture. The Debentures shall be repurchased by the Company as of the Repurchase Date or the
Fundamental Change Repurchase Date, as the case may be, pursuant to the terms and conditions
specified in the Indenture.

	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 
	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Signature(s)	 	 

NOTICE: The above signatures of the Holder(s) hereof must correspond with the name as written upon
the face of the Debentures in every particular without alteration or enlargement or any change
whatever.

Debentures
Certificate Number (if applicable):                     

Principal amount to be repurchased

(if less than all, must be $1,000 or whole multiples thereof):                     

Social
Security or Other Taxpayer Identification Number:                     

 

 

ASSIGNMENT

     For value received                                          hereby sell(s) assign(s) and transfer(s) unto
                                         (Please insert social security or other Taxpayer Identification Number of
assignee) the within Debentures, and hereby irrevocably constitutes and appoints
                                         attorney to transfer said Debentures on the books of the Company, with full
power of substitution in the premises.

     In connection with any transfer of the Debentures prior to the expiration of the holding
period applicable to sales thereof under Rule 144(k) under the Securities Act (or any successor
provision) (other than any transfer pursuant to a registration statement that has been declared
effective under the Securities Act), the undersigned confirms that such Debentures are being
transferred:

     o To Trico Marine Services, Inc. or a subsidiary thereof; or

     o To a “qualified institutional buyer” in compliance with Rule 144A under the
Securities Act of 1933, as amended; or

     o Pursuant to and in compliance with Rule 144 under the Securities Act of 1933, as
amended; or

     o Pursuant to a Registration Statement which has been declared effective under the
Securities Act of 1933, as amended, and which continues to be effective at the time
of transfer.

     Unless one of the boxes is checked, the Trustee will refuse to register any of the Debentures
evidenced by this certificate in the name of any person other than the registered Holder thereof.

 

 

	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 
	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Signature(s)	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Signature(s) must be guaranteed by an “eligible	 	 
	 

	 	 	 	 	 	guarantor institution” meeting the requirements of the	 	 
	 

	 	 	 	 	 	Registrar, which requirements include membership or	 	 
	 

	 	 	 	 	 	participation in the Security Transfer Agent	 	 
	 

	 	 	 	 	 	Medallion Program (“STAMP”) or such other	 	 
	 

	 	 	 	 	 	“signature guarantee program” as may be determined	 	 
	 

	 	 	 	 	 	by the Registrar in addition to, or in substitution for,	 	 
	 

	 	 	 	 	 	STAMP, all in accordance with the Securities	 	 
	 

	 	 	 	 	 	Exchange Act of 1934, as amended.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Signature Guarantee	 	 

NOTICE: The signature on this Assignment must correspond with the name as written upon the face of
the Debentures in every particular without alteration or enlargement or any change whatever.

 

 

SCHEDULE OF INCREASES AND DECREASES IN GLOBAL DEBENTURE*

The following increases or decreases in this Global Debenture have been made:

	 	 	 	 	 	 	 	 	 
	 

	 	Amount of decrease in Principal
	 	Amount of increase in Principal
	 	Principal Amount of
	 	Signature of authorized
	 

	 	Amount of this Global
	 	Amount of this Global
	 	Debenture following such decrease
	 	signatory of Trustee or Securities
	Date

	 	Debenture
	 	Debenture
	 	or increase
	 	Custodian
	 

	 	 
	 	 
	 	 
	 	 

 

			
	*	 	For Global Debentures only

 

 

EXHIBIT B

FORM OF RESTRICTIVE LEGEND FOR

COMMON STOCK ISSUED UPON CONVERSION1

     THE SECURITY EVIDENCED BY THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT OF 1933”), OR ANY STATE SECURITIES LAWS, AND MAY NOT BE
OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE BY ACQUISITION HEREOF. THE HOLDER
AGREES THAT (1) IT WILL NOT, WITHIN TWO YEARS AFTER THE LAST DATE OF ORIGINAL ISSUANCE OF THE
SECURITY UPON THE CONVERSION OF WHICH THE COMMON STOCK EVIDENCED HEREBY WAS ISSUED, RESELL OR
OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY EXCEPT (A) TO TRICO MARINE SERVICES, INC. (THE
“COMPANY”) OR ANY SUBSIDIARY THEREOF, (B) TO A PERSON IT REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT OF 1933, (C) PURSUANT TO
A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT OF 1933 AND
WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER, OR (D) PURSUANT TO THE EXEMPTION FROM
REGISTRATION REQUIREMENTS UNDER THE SECURITIES ACT OF 1933 PROVIDED BY RULE 144 , IF AVAILABLE,
SUBJECT TO THE COMPANY’S RIGHT PRIOR TO ANY SUCH TRANSFER, TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATIONS AND/OR OTHER INFORMATION SATISFACTORY TO THE COMPANY; AND (2) THAT IT WILL
DELIVER TO EACH PERSON TO WHOM THE SECURITY EVIDENCED HEREBY IS TRANSFERRED PURSUANT TO CLAUSE 1(B)
ABOVE A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.

 

			
	1	 	This legend should be included only if the
Security is a Transfer Restricted Security.

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