Document:

exv10w2

 

 Exhibit 10.2

Service Corporation International

Floating Rate Series A Senior Notes Due November 28, 2011

Floating Rate Series B Senior Notes Due November 28, 2011

FIRST AMENDMENT TO NOTE PURCHASE AGREEMENT

As of June 11, 2007

The Noteholders Named on

the Signature Page hereto (the “Noteholders”)

Ladies and Gentlemen:

     SERVICE CORPORATION INTERNATIONAL, a Texas corporation (together with its permitted successors
and assigns, the “Company”), and each of the undersigned Guarantors (the Guarantors and the Company
hereby referred to as, the “Obligors”), agree with you as follows:

1. BACKGROUND.

     Pursuant to that certain Note Purchase Agreement (as in effect immediately prior to the
effectiveness of this Agreement (as defined below), the “Existing Note Purchase Agreement;” and, as
amended hereby, the “Note Purchase Agreement”), dated November 28, 2006, by and among the Company
and each of the Noteholders, the Company issued $50,000,000 in aggregate principal amount of its
Floating Rate Series A Senior Notes due November 28, 2011 and $150,000,000 in aggregate principal
amount of its Floating Rate Series B Senior Notes due November 28, 2011 (collectively, the
“Notes”). The aggregate principal amount of the Notes outstanding on the date hereof is held by
the Noteholders. The Obligors have requested that the Noteholders agree to amend the Existing Note
Purchase Agreement as set forth herein. The Noteholders have, subject to the satisfaction of the
conditions set forth in Section 5 of this Agreement, consented to such request. The mutual
agreement of the parties as to such matters is set forth in this First Amendment to Note Purchase
Agreement (this “Agreement”).

2. DEFINED TERMS.

     Capitalized terms used herein and not otherwise defined herein have the meanings ascribed to
them in the Existing Note Purchase Agreement.

3. AMENDMENTS.

     The Noteholders and the Company hereby agree that, subject to Section 5 hereof, the Existing
Note Purchase Agreement is hereby amended as follows (the “Amendments”):

     (a) Section 10.9(a) of the Existing Note Purchase Agreement is amended and restated in
its entirety as follows:

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     “(a) The Company will not, and will not permit any of its Subsidiaries to, declare or
make, or agree to pay or make, directly or indirectly, any Restricted Payment except (i)
that any Subsidiary may make any Restricted Payment to the Company or any other Subsidiary
(provided that neither the Company nor any Guarantor may make any Restricted Payment to a
Subsidiary that is not a Guarantor) and (ii) as otherwise provided herein. As used herein,
“Restricted Payment” means any dividend or other distribution (whether in cash, securities
or other property) with respect to any Equity Interests in the Company or any Subsidiary, or
any payment (whether in cash, securities or other property), including any sinking fund or
similar deposit, on account of the purchase, redemption, retirement, acquisition,
cancellation or termination of any such Equity Interests or any option, warrant or other
right to acquire any such Equity Interests. On any date that the Leverage Ratio, calculated
as set forth below, is greater than 3.75 to 1.0, and so long as no Default or Event of
Default exists at the time, or is created as a result of any such dividend, the Company may
declare and pay dividends with respect to its Equity Interests not to exceed $50,000,000 in
the aggregate in the twelve month period immediately preceding the date of such proposed
dividend (including such proposed dividend in the calculation of such aggregate amount but
excluding therefrom any dividend in excess of a rate of $12,500,000 per fiscal quarter
declared when, on the date of its declaration, the Leverage Ratio was less than or equal to
3.75 to 1.0). On any date that the Leverage Ratio, calculated as set forth below, is less
than or equal to 3.75 to 1.0, and so long as no Default or Event of Default exists at the
time or is created as a result of any Restricted Payment, the provisions of this section
will not apply to Restricted Payments. The Leverage Ratio will be determined pursuant to
the most recently quarterly compliance certificate delivered pursuant to Section 7.2;
provided, that if such ratio decreases below 3.75 to 1.0 during any quarter solely as a
result of a decrease in outstanding Indebtedness or an increase in unrestricted cash of the
Company and all of its Subsidiaries, then such ratio, until the next quarterly compliance
certificate, for purposes of this clause (a) may, at the Company’s option, be determined
pursuant to a certificate calculating such ratio and executed by an officer of the Company
and delivered to each of the holders of Notes.”

     (b) Section 10.9(b) of the Existing Note Purchase Agreement is amended and restated in its
entirety as follows:

     “(b) [Reserved].”

     (c) The definition of “Leverage Ratio” in Schedule B of the Existing Note Purchase Agreement
is amended and restated in its entirety as follows:

     ““Leverage Ratio” means, on any date, the ratio of the consolidated total Indebtedness
of the Company and its Subsidiaries net of unrestricted cash on hand of the Company and its
Subsidiaries in excess of $25,000,000, calculated as of such date, to EBITDA for the period
of four fiscal quarters of the Company then most recently ended.”

2

 

4. REPRESENTATIONS AND WARRANTIES OF THE OBLIGORS.

     To induce the Noteholders to enter into this Agreement, the Company represents and warrants
that the representations and warranties contained in Section 5 of the Existing Note Purchase
Agreement are true and correct in all material respects on and as of the date hereof as though made
on and as of such date (except if and to the extent that it relates to an earlier date, in which
case such representation and warranty shall be true as of such earlier date). The Company hereby
certifies that no event has occurred and is continuing which constitutes a Default or Event of
Default. None of the Obligors nor any of their respective Subsidiaries has paid any fee or other
consideration to the lenders under the Credit Agreement in connection with the Agreement and First
Amendment to Credit Agreement referred to in Section 5(d).

5. EFFECTIVENESS.

     The Amendments shall become effective only upon the date of the satisfaction in full of the
following conditions precedent (the “Effective Date”):

     (a) the Obligors and the Required Holders shall have executed and delivered a
counterpart of this Agreement;

     (b) the representations and warranties set forth in Section 4 hereof shall be true and
correct on such date;

     (c) the Obligors shall have authorized, by all necessary corporate, limited liability
company or partnership action, as applicable, the execution and delivery of this Agreement
and the performance of all obligations of the Obligors, and the satisfaction by the Obligors
of all closing conditions, set forth in this Section 5;

     (d) the Company shall have delivered to the Noteholders a fully-executed copy of that
certain Agreement and First Amendment to Credit Agreement, dated on or about the date
hereof, among the Obligors and certain lending institutions party thereto;

     (e) the Obligors shall have paid the fees and expenses of the Noteholders’ special
counsel pursuant to an estimated invoice delivered to the Company on or about the date
hereof; and

     (f) all proceedings taken in connection with this Agreement and all documents and
papers relating thereto shall be satisfactory to the Noteholders and their special counsel,
and the Noteholders and their special counsel shall have received copies of such documents
and papers as they or their special counsel may reasonably request in connection herewith.

6. EXPENSES.

     Whether or not the Amendments become effective, the Company will pay all reasonable fees,
expenses and costs relating to this Agreement, including, but not limited to, (a) the reasonable
cost of reproducing this Agreement and the other documents delivered in connection herewith and (b)
the reasonable fees and disbursements of the Noteholders’ special counsel,

3

 

Bingham McCutchen LLP, incurred in connection with the preparation, negotiation and delivery
of this Agreement. Nothing in this Section 6 shall limit the Obligors’ obligations under Section
15 of the Note Purchase Agreement.

7. MISCELLANEOUS.

     7.1. Part of Note Purchase Agreement, Ratification and Confirmation.

     This Agreement shall be construed in connection with and as a part of the Existing Note
Purchase Agreement and, except as expressly amended by this Agreement, all terms, conditions and
covenants contained in the Existing Note Purchase Agreement and the Notes are hereby ratified and
confirmed and shall be and remain in full force and effect. Any and all notices, requests,
certificates and other instruments executed and delivered after the execution and delivery of this
Agreement may refer to the Existing Note Purchase Agreement and the Notes without making specific
reference to this Agreement, but nevertheless all such references shall include this Agreement
unless the context otherwise requires.

     7.2. Counterparts; Effectiveness.

     This Agreement may be executed in any number of counterparts, each of which shall be an
original but all of which together shall constitute one instrument. Delivery of an executed
signature page by facsimile transmission or email shall be effective as delivery of a manually
signed counterpart of this Agreement.

     7.3. Successors and Assigns.

     All covenants and other agreements in this Agreement contained by or on behalf of any of the
parties hereto shall bind and inure to the benefit of the respective successors and assigns of the
parties hereto (including, without limitation, any transferee) whether so expressed or not.

     7.4. Governing Law.

     THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE
PARTIES SHALL BE GOVERNED BY, THE INTERNAL LAWS OF THE STATE OF NEW YORK EXCLUDING CHOICE-OF-LAW
PRINCIPLES OF THE LAW OF SUCH STATE THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF A
JURISDICTION OTHER THAN SUCH STATE.

     7.5. Confirmation of Guaranty Agreements.

     By executing this Agreement each of the Guarantors acknowledges having taken cognizance of the
foregoing and recognizes and confirms that (a) its Guaranty Agreement continues in full force and
effect notwithstanding the Amendments and (b) the indebtedness, liabilities and obligations of the
Company under the Note Purchase Agreement, constitute indebtedness, liabilities and obligations
guaranteed under such Guaranty Agreement. Nothing in this Agreement extinguishes, novates or
releases any right, claim, or entitlement of any of the Noteholders created by or contained in the
Note Purchase Agreement, the Notes or any Guaranty

4

 

Agreement nor is the Company or any Guarantor released from any covenant, warranty or obligation
created by or contained herein or therein, except as such covenants and obligations are
specifically amended by this Agreement.

[Remainder of page intentionally left blank. Next page is signature page.]

 

 

     If you are in agreement with the foregoing, please so indicate by signing the agreement below
on the accompanying counterpart of this Agreement and return it to the Company, whereupon the
foregoing shall become a binding agreement among you and the Obligors.

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	COMPANY:
	 
	 	 	 	 
	 	 	SERVICE CORPORATION INTERNATIONAL
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Eric D. Tanzberger
	 

	 	 	 	 
	 

	 	Name:
	 	Eric D. Tanzberger
	 

	 	Title:
	 	Senior Vice President &
Chief Financial Officer
	 
	 	 	 	 
	 	 	GUARANTORS:
	 
	 	 	 	 
	 	 	SCI MANAGEMENT L.P.
	 

	 	By:
	 	SCI ADMINISTRATIVE SERVICES, LLC, its General
Partner
	 
	 	 	 	 
	 

	 	 	 	By: /s/ Curtis G. Briggs
	 

	 	 	 	 

	 

	 	 	 	Name: Curtis G. Briggs
	 

	 	 	 	Title: Vice President
	 
	 	 	 	 
	 	 	SCI EASTERN MARKET SUPPORT CENTER, L.P.
	 

	 	By:
	 	SCI EOPS HQ, INC., its General Partner
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Curtis G. Briggs
	 

	 	 	 	 
	 

	 	Name:
	 	Curtis G. Briggs
	 

	 	Title:
	 	Vice President
	 
	 	 	 	 
	 	 	SCI HOUSTON MARKET SUPPORT CENTER, L.P.
	 

	 	By:
	 	SCI HOUSTON HUB, INC., its General Partner
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Curtis G. Briggs
	 

	 	 	 	 
	 

	 	Name:
	 	Curtis G. Briggs
	 

	 	Title:
	 	Vice President

 

 

	 	 	 	 	 
	 	 	ALDERWOODS (TEXAS) L.P.
	 

	 	By:
	 	ALDERWOODS (PARTNER), INC.,
General Partner
	 
	 	 	 	 
	 

	 	 	 	By: /s/ Curtis G. Briggs
	 

	 	 	 	 

	 

	 	 	 	Name: Curtis G. Briggs
	 

	 	 	 	Title: Vice President
	 
	 	 	 	 
	 	 	DIRECTORS (TEXAS) L.P.
	 

	 	By:
	 	DSP GENERAL PARTNER, INC.,
General Partner
	 
	 	 	 	 
	 

	 	 	 	By: /s/ Curtis G. Briggs
	 

	 	 	 	 

	 

	 	 	 	Name: Curtis G. Briggs
	 

	 	 	 	Title: Vice President
	 
	 	 	 	 
	 	 	TEXAS MARKER, L.P.
	 

	 	By: 
	 	SCI TEXAS FUNERAL SERVICES, INC., General
Partner
	 
	 	 	 	 
	 

	 	 	 	By: /s/ Curtis G. Briggs
	 

	 	 	 	 

	 

	 	 	 	Name: Curtis G. Briggs
	 

	 	 	 	Title: Vice President
	 
	 	 	 	 
	 	 	REMEMBRANCE MEMORIAL

TRADITIONS, LLC
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Ralph Destefano
	 

	 	 	 	 
	 

	 	Name:
	 	Ralph Destefano
	 

	 	Title:
	 	Manager

 

 

	 	 	 	 	 
	 	

PROFESSIONAL FUNERAL TRADITIONS, LLC

 	 
	 	By:  	 	/s/ Ralph Destefano
 	 
	 	Name: 		Ralph Destefano 	 
	 	Title: 		Manager 	 
	 

	 	 	 	 	 
	 	

MR ADVERTISING AGENCY, LLC

 	 
	 	By:  	 	/s/ Judith M. Marshall
 	 
	 	Name: 		Judith M. Marshall 	 
	 	Title: 		Manager 	 
	 

	 	 	 	 	 
	 	

EACH OF THE OTHER SUBSIDIARIES LISTED ON SCHEDULE A HERETO

 	 
	 	By:  	 	/s/ Curtis G. Briggs
 	 
	 	Name: 		Curtis G. Briggs 	 
	 	Title: 	 	President / Vice President 	 
	 

 

 

	 	 	 	 	 
	 	

PINEY GROVE, LLC

 	 
	 	By:  	 	/s/ Edward A. Fowler
 	 
	 	Name: 	 	Edward A. Fowler 	 
	 	Title: 	 	Manager 	 
	 

	 	 	 	 	 
	 	STORMY SKY, LLC

 	 
	 	By:  	 	/s/ Curtis G. Briggs
 	 
	 	Name: 	 	Curtis G. Briggs 	 
	 	Title: 	 	Manager 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	NOTEHOLDERS:	 	 
	 
	 	 	 	 
	This Agreement is hereby
accepted and agreed to as
of the date hereof:	 	 
	 
	 	 	 	 
	AIG ANNUITY INSURANCE COMPANY	 	 
	FIRST SUNAMERICA LIFE INSURANCE COMPANY	 	 
	AMERICAN INTERNATIONAL GROUP, INC.	 	 
	By:

	 	AIG Global Investment Corp., investment adviser	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 

	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

 

 

	 	 	 	 	 
	HARTFORD LIFE INSURANCE COMPANY	 	 
	By:

	 	Hartford Investment Management Company
Its Agent and Attorney-in-Fact	 	 
	 
	 	 	 	 
	 

	 	 By: /s/ Daniel C. Leimbach
	 	 
	 

	 	Name: Daniel C. Leimbach	 	 
	 

	 	Title: Senior Vice President	 	 
	 
	 	 	 	 
	THE HARTFORD MUTUAL FUNDS, INC., ON BEHALF

OF THE HARTFORD FLOATING RATE FUND	 	 
	By:

	 	Hartford Investment Management Company

Its Sub-advisor	 	 
	 
	 	 	 	 
	 

	 	By: /s/ Daniel C. Leimbach
	 	 
	 

	 	Name: Daniel C. Leimbach	 	 
	 

	 	Title: Senior Vice President	 	 

 

 

	 	 	 	 	 
	AEGON GLOBAL INSTITUTIONAL MARKETS, PLC	 	 
	 
	 	 	 	 
	By:

	 	/s/ Bill Henricksen
	 	 
	Name:

	 	Bill Henricksen	 	 
	Title:

	 	Vice President	 	 

 

 

	 	 	 	 	 
	THE PRUDENTIAL INSURANCE COMPANY OF AMERICA	 	 
	 
	 	 	 	 
	By: 

Name:

	 	/s/ Brian N. Thomas
 

Brian N. Thomas
	 	 
	Title:

	 	Vice President	 	 

 

 

	 	 	 	 	 
	ALLSTATE LIFE INSURANCE COMPANY	 	 
	 
	 	 	 	 
	By: 

Name:

	 	/s/ Robert B. Bodett
 

ROBERT B. BODETT
	 	 
	 
	 	 	 	 
	By: 

Name:

	 	/s/ Jerry D. Zinkula
 

JERRY D. ZINKULA
	 	 
	 

	 	Authorized Signatories	 	 

 

 

	 	 	 	 	 	 	 
	ING USA ANNUITY AND LIFE INSURANCE COMPANY

ING LIFE INSURANCE AND ANNUITY COMPANY

RELIASTAR LIFE INSURANCE COMPANY

By: ING Investment Management LLC, as Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

 

 

	 	 	 	 	 	 	 
	CONNECTICUT GENERAL LIFE INSURANCE COMPANY

By: CIGNA Investments, Inc. (authorized agent)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Leonard Mazlish
 

Leonard Mazlish
	 	 
	 

	 	Title:
	 	Managing Director	 	 
	 
	 	 	 	 	 	 
	LIFE INSURANCE COMPANY OF NORTH AMERICA

By: CIGNA Investments, Inc. (authorized agent)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Leonard Mazlish
 

Leonard Mazlish
	 	 
	 

	 	Title:
	 	Managing Director	 	 

 

 

	 	 	 	 	 	 	 
	THE LINCOLN NATIONAL LIFE INSURANCE COMPANY	 	 
	By:	 	Delaware Investment Advisers, a series of Delaware

Management Business Trust, Attorney in Fact	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Alexander Alotow
 

Alexander Alotow
	 	 
	 

	 	Title:
	 	Vice President	 	 

 

 

	 	 	 	 	 	 	 
	CASTLE HILL I-IGNOTS, LTD.

By: Sankaty Advisors, LLC as Collateral Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Alan K. Halfenger
 

Chief Compliance Officer
	 	 
	 

	 	Title:
	 	Assistant Secretary	 	 
	 
	 	 	 	 	 	 
	CASTLE HILL II-IGNOTS, LTD.

By: Sankaty Advisors, LLC as Collateral Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Alan K. Halfenger
 

Chief Compliance Officer
	 	 
	 

	 	Title:
	 	Assistant Secretary	 	 
	 
	 	 	 	 	 	 
	CASTLE HILL III CLO, LTD.

By: Sankaty Advisors, LLC as Collateral Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Alan K. Halfenger
 

Chief Compliance Officer
	 	 
	 

	 	Title:
	 	Assistant Secretary	 	 
	 
	 	 	 	 	 	 
	RACE POINT CLO, LIMITED

By: Sankaty Advisors, LLC as Collateral Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Alan K. Halfenger
 

Chief Compliance Officer
	 	 
	 

	 	Title:
	 	Assistant Secretary	 	 
	 
	 	 	 	 	 	 
	RACE POINT II CLO, LIMITED

By: Sankaty Advisors, LLC as Collateral Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Alan K. Halfenger
 

Chief Compliance Officer
	 	 
	 

	 	Title:
	 	Assistant Secretary	 	 

 

 

	 	 	 	 	 	 	 
	AVERY POINT CLO, LIMITED

By: Sankaty Advisors, LLC as Collateral Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Alan K. Halfenger
 

Chief Compliance Officer
	 	 
	 

	 	Title:
	 	Assistant Secretary	 	 
	 
	 	 	 	 	 	 
	LOAN FUNDING XI LLC

By: Sankaty Advisors, LLC as Collateral Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Alan K. Halfenger
 

Chief Compliance Officer
	 	 
	 

	 	Title:
	 	Assistant Secretary	 	 
	 
	 	 	 	 	 	 
	CHATHAM LIGHT II CLO, LIMITED

By: Sankaty Advisors, LLC as Collateral Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Alan K. Halfenger
 

Chief Compliance Officer
	 	 
	 

	 	Title:
	 	Assistant Secretary	 	 
	 
	 	 	 	 	 	 
	KATONAH III, LTD.

By: Sankaty Advisors, LLC as Sub-Advisor	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Alan K. Halfenger
 

Chief Compliance Officer
	 	 
	 

	 	Title:
	 	Assistant Secretary	 	 
	 
	 	 	 	 	 	 
	KATONAH IV, LTD.

By: Sankaty Advisors, LLC as Sub-Advisor	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Alan K. Halfenger
 

Chief Compliance Officer
	 	 
	 

	 	Title:
	 	Assistant Secretary	 	 

 

 

	 	 	 	 	 	 	 
	PRINCIPAL LIFE INSURANCE COMPANY	 	 
	By:	 	Principal Global Investors, LLC

a Delaware limited liability company,

its authorized signatory	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name: 
	 	/s/ Colin Pennycooke
 

COLIN PENNYCOOKE, Counsel
	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:

Title:
	 	/s/ Alan P. Kress
 

ALAN P. KRESS, Counsel
	 	 

 

 

	 	 	 	 	 	 	 
	AMERICAN HEALTH AND LIFE INSURANCE COMPANY	 	 
	By:	 	Conning Asset Management Company,

its Investment Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Robert M. Mills
 

Robert M. Mills
	 	 
	 

	 	Title:
	 	Director	 	 
	 
	 	 	 	 	 	 
	PRIMERICA LIFE INSURANCE COMPANY	 	 
	By:	 	Conning Asset Management Company,

its Investment Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:

Title:
	 	/s/ Robert M. Mills
 

Robert M. Mills

Director
	 	 
	 
	 	 	 	 	 	 
	NATIONAL BENEFIT LIFE INSURANCE COMPANY	 	 
	By:	 	Conning Asset Management Company,

its Investment Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Robert M. Mills
 

Robert M. Mills
	 	 
	 

	 	Title:
	 	Director	 	 

 

 

	 	 	 	 	 
	BANC OF AMERICA SECURITIES LLC	 	 
	 
	 	 	 	 
	By: 

Name:

	 	 
 

Joshua B Pruitt
	 	 
	Title:

	 	Associate	 	 

 

 

	 	 	 	 	 	 	 
	STONEY LANE FUNDING I LTD.	 	 
	By:	 	HILLMARK CAPITAL MANAGEMENT, L.P.,

as Collateral Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Kevin Cuskley
 

Kevin Cuskley
	 	 
	 

	 	Title:
	 	Senior Portfolio Manager	 	 

 

 

SCHEDULE A

ADDITIONAL GUARANTORS

ADMINISTRATION SERVICES, INC.

ADVANCE FUNERAL INSURANCE SERVICES

ADVANCE PLANNING OF AMERICA, INC.

ADVANCED PLANNING (ALABAMA), INC.

ADVANCED PLANNING OF GEORGIA, INC.

AFFILIATED FAMILY FUNERAL SERVICE, INC.

ALDERWOODS (ALABAMA), INC.

ALDERWOODS (ALASKA), INC.

ALDERWOODS (ARIZONA), INC.

ALDERWOODS (ARKANSAS), INC.

ALDERWOODS (CHICAGO CENTRAL), INC.

ALDERWOODS (CHICAGO NORTH), INC.

ALDERWOODS (COLORADO), INC.

ALDERWOODS (COMMISSIONER), INC.

ALDERWOODS (CONNECTICUT), INC.

ALDERWOODS (DELAWARE), INC.

ALDERWOODS (GEORGIA) HOLDINGS, INC.

ALDERWOODS (GEORGIA), INC.

ALDERWOODS (IDAHO), INC.

ALDERWOODS (ILLINOIS), INC.

ALDERWOODS (INDIANA), INC.

ALDERWOODS (KANSAS), INC.

ALDERWOODS (KENTUCKY), INC.

ALDERWOODS (LOUISIANA), INC.

ALDERWOODS (MARYLAND), INC.

ALDERWOODS (MASSACHUSETTS), INC.

ALDERWOODS (MICHIGAN), INC.

ALDERWOODS (MINNESOTA), INC.

ALDERWOODS (MISSISSIPPI), INC.

ALDERWOODS (MISSOURI), INC.

ALDERWOODS (MONTANA), INC.

ALDERWOODS (NEVADA), INC.

ALDERWOODS (NEW MEXICO), INC.

ALDERWOODS (NEW YORK), INC.

ALDERWOODS (NORTH CAROLINA), INC.

ALDERWOODS (OHIO) CEMETERY MANAGEMENT, INC.

ALDERWOODS (OHIO) FUNERAL HOME, INC.

ALDERWOODS (OKLAHOMA), INC.

ALDERWOODS (OREGON), INC.

ALDERWOODS (PARTNER), INC.

ALDERWOODS (PENNSYLVANIA), INC.

ALDERWOODS (RHODE ISLAND), INC.

1

 

ALDERWOODS (SOUTH CAROLINA), INC.

ALDERWOODS (TENNESSEE), INC.

ALDERWOODS (TEXAS) CEMETERY, INC.

ALDERWOODS (TEXAS), INC.

ALDERWOODS (VIRGINIA), INC.

ALDERWOODS (WASHINGTON), INC.

ALDERWOODS (WEST VIRGINIA), INC.

ALDERWOODS (WISCONSIN), INC.

ALDERWOODS GROUP (CALIFORNIA), INC.

ALDERWOODS GROUP, INC.

ALDERWOODS LIFE INSURANCE GROUP, INC.

AMERICAN BURIAL AND CREMATION CENTERS, INC.

AMG, INC.

AUMAN FUNERAL HOME, INC.

AUMAN’S, INC.

BAMFH, INC.

BENNETT-EMMERT-SZAKOVITS FUNERAL HOME, INC.

BRIGHT UNDERTAKING COMPANY

BURGEE-HENSS-SEITZ FUNERAL HOME, INC.

CALIFORNIA CEMETERY AND FUNERAL SERVICES, LLC

CAROTHERS HOLDING COMPANY, INC.

CEMCARE, INC.

CHAPEL HILL MEMORIAL GARDENS & FUNERAL HOME LTD.

CHARLES S. ZEILER & SON, INC.

CHAS. PETER NAGEL INC.

CHICAGO CEMETERY CORPORATION

CHRISTIAN FUNERAL SERVICES, INC.

CORAL RIDGE FUNERAL HOME AND CEMETERY, INC.

DANZANSKY-GOLDBERG MEMORIAL CHAPELS, INC.

DIGNITY MEMORIAL NETWORK, INC.

DIRECTORS CEMETERY (TEXAS), INC.

DIRECTORS SUCCESSION PLANNING II, INC.

DIRECTORS SUCCESSION PLANNING, INC.

DOBA-HABY INSURANCE AGENCY, INC.

DRMP HOLDINGS, INC.

DSP GENERAL PARTNER II, INC.

DSP GENERAL PARTNER, INC.

DUNWOOD CEMETERY SERVICE COMPANY

EAGLE FINANCIAL ASSOCIATES, INC.

EARTHMAN HOLDINGS, INC.

EARTHMAN LP, INC.

ECI ALABAMA SERVICES, LLC

ECI CAPITAL CORPORATION

ECI CEMETERY SERVICES OF GEORGIA, LLC

ECI CEMETERY SERVICES OF MARYLAND, LLC

2

 

ECI SERVICES OF MAINE, INC.

ECI SERVICES OF NEW HAMPSHIRE, INC.

ECI SERVICES OF SOUTH DAKOTA, INC.

ECI SERVICES OF VERMONT, INC.

ECI-CHAPEL HILL, INC.

ED MELENYZER CO.

EDWARD SAGEL FUNERAL DIRECTION, INC.

ELMWOOD ACQUISITION CORPORATION

ENSURE AGENCY OF PENNSYLVANIA, INC.

EVERGREEN FUNERAL HOME AND CEMETERY, INC.

FAMILY CARE, INC.

FHC REALTY, INC.

FLECK FUNERAL HOME, INC.

FLORIDA MARKER, LLC

FOUNTAINHEAD MEMORIAL PARK, LLC

FRANCIS F. SEIDEL, INC.

FUNERAL CORPORATION PENNSYLVANIA

FUNERAL SERVICE, INC.

FUNERAL SERVICES ACQUISITION GROUP, INC.

GABAUER FUNERAL HOME, INC.

GARDEN SANCTUARY ACQUISITION, INC.

GARDEN STATE CREMATORY, INC.

GARY L. KAUFMAN FUNERAL HOME AT MEADOWRIDGE MEMORIAL PARK, INC.

GARY L. KAUFMAN FUNERAL HOME SOUTHWEST, INC.

GEORGE WASHINGTON CEMETERY COMPANY, LLC

GRACELAND CEMETERY DEVELOPMENT CO.

GREEN SERVICE CORPORATION

H. SAMSON, INC.

H.P. BRANDT FUNERAL HOME, INC.

HAROLD B. MULLIGAN CO., INC.

HAWAIIAN MEMORIAL LIFE PLAN, LTD.

HFCC HOLDINGS, INC.

HFH, INC.

HFJC HOLDINGS, INC.

I. J. MORRIS, INC.

INVESTMENT CAPITAL CORPORATION

JOSEPH GAWLER’S SONS, INC.

JPH PROPERTIES, INC.

KADEK ENTERPRISES OF FLORIDA, INC.

KENYON INTERNATIONAL EMERGENCY SERVICES, INC.

KNEE FUNERAL HOME OF WILKINSBURG, INC.

LAKE VIEW MANAGEMENT COMPANY, INC.

LAKE VIEW MEMORIAL GARDENS, INC.

LAUGHLIN FUNERAL HOME, LTD.

3

 

LEMMON FUNERAL HOME OF DULANEY VALLEY, INC.

LEVITT WEINSTEIN MEMORIAL GARDENS, INC.

LIENKAEMPER CHAPELS, INC.

LINEBERRY GROUP, INC.

LORING BYERS FUNERAL DIRECTORS, INC.

MAKING EVERLASTING MEMORIES, L.L.C.

MAYFLOWER CORPORATE SERVICES, INC.

MAYFLOWER NATIONAL LIFE INSURANCE COMPANY

MEMORIAL GUARDIAN PLANS, INC.

MEMORIAL GUARDIAN PLANS, INC.

MFH, L.L.C.

MHI GROUP, INC.

MILLER-DIPPEL FUNERAL HOME, INC.

MORAN-ASHTON FUNERAL HOME, INC.

MOUNT AUBURN MEMORIAL PARK, INC.

MOUNT VERNON MEMORIAL PARK

NAPLES MEMORIAL GARDENS, INC.

NATIONAL CREMATION SERVICE, INC.

NEW YORK FUNERAL CHAPELS, INC.

NEW YORK MARKER, LLC

NINETEEN THIRTY-FIVE HOLDINGS, INC.

NORTHEAST MONUMENT COMPANY, INC.

NORTHERN LAND COMPANY, INC.

OAK WOODS MANAGEMENT COMPANY

OSIRIS HOLDING CORPORATION

OSIRIS HOLDING OF FLORIDA, INC.

PANOLA COUNTY RESTLAND MEMORIAL PARK, INC.

PHOENIX MEMORIAL PARK ASSOCIATION

PINEVIEW MEMORIAL PARK, INC.

PIONEER FUNERAL PLANS, INC.

POTEET HOLDINGS, INC.

PSI FUNDING, INC.

REEVES, INC.

RH CEMETERY CORP.

RH MORTUARY CORPORATION

RIDGEWOOD CEMETERY COMPANY, INC.

ROBERT DOUGLAS GOUNDREY FUNERAL HOME, INC.

ROBERT L. HENDRICKS FUNERAL HOME, INC.

ROHLAND FUNERAL HOME

ROSE HILLS COMPANY

ROSE HILLS HOLDINGS CORP.

ROSEDALE CEMETERY COMPANY

ROSEDALE FUNERAL CHAPEL, INC.

RUZICH FUNERAL HOME, INC.

RUZICH FUNERAL HOME, INC.

4

 

S & H PROPERTIES AND ENTERPRISES, INC.

SALVATORE AIR TRANSPORTATION CORP.

SCI ADMINISTRATIVE SERVICES, LLC

SCI ALABAMA FUNERAL SERVICES,INC.

SCI ALASKA FUNERAL SERVICES, INC.

SCI ARIZONA FUNERAL SERVICES, INC.

SCI ARKANSAS FUNERAL SERVICES, INC.

SCI CALIFORNIA FUNERAL SERVICES, INC.

SCI CAPITAL CORPORATION

SCI CERBERUS, LLC

SCI COLORADO FUNERAL SERVICES, INC.

SCI CONNECTICUT FUNERAL SERVICES, INC.

SCI EOPS HQ, INC.

SCI EXECUTIVE SERVICES, INC.

SCI FINANCIAL SERVICES, INC.

SCI FUNERAL & CEMETERY PURCHASING COOPERATIVE, INC.

SCI FUNERAL SERVICES OF FLORIDA, INC.

SCI FUNERAL SERVICES OF NEW YORK, INC.

SCI FUNERAL SERVICES, INC.

SCI GEORGIA FUNERAL SERVICES, INC.

SCI GEORGIA LAND, INC.

SCI HOUSTON HUB, INC.

SCI ILLINOIS SERVICES, INC.

SCI INDIANA FUNERAL SERVICES, INC.

SCI INTERNATIONAL LIMITED

SCI INVESTMENT SERVICES, INC.

SCI IOWA FINANCE COMPANY

SCI IOWA FUNERAL SERVICES, INC.

SCI KANSAS FUNERAL SERVICES, INC.

SCI KENTUCKY FUNERAL SERVICES, INC.

SCI LOAN SERVICES, LLC

SCI LOUISIANA FUNERAL SERVICES, INC.

SCI MARYLAND FUNERAL SERVICES, INC.

SCI MICHIGAN FUNERAL SERVICES, INC.

SCI MINNESOTA FUNERAL SERVICES, INC.

SCI MISSISSIPPI FUNERAL SERVICES, INC.

SCI MISSOURI FUNERAL SERVICES, INC.

SCI NEBRASKA FUNERAL SERVICES, INC.

SCI NEW JERSEY FUNERAL SERVICES, INC.

SCI NEW MEXICO FUNERAL SERVICES, INC.

SCI NORTH CAROLINA FUNERAL SERVICES, INC.

SCI OHIO FUNERAL SERVICES, INC.

SCI OKLAHOMA FUNERAL SERVICES, INC.

SCI OREGON FUNERAL SERVICES, INC.

SCI PENNSYLVANIA FUNERAL SERVICES, INC.

5

 

SCI RHODE ISLAND FUNERAL SERVICES, INC.

SCI SOUTH CAROLINA FUNERAL SERVICES, INC.

SCI SPECIAL, INC.

SCI TENNESSEE FUNERAL SERVICES, INC.

SCI TEXAS FINANCE COMPANY

SCI TEXAS FUNERAL SERVICES, INC.

SCI UTAH FUNERAL SERVICES, INC.

SCI VIRGINIA FUNERAL SERVICES, INC.

SCI WASHINGTON FUNERAL SERVICES, INC.

SCI WEST VIRGINIA FUNERAL SERVICES, INC.

SCI WESTERN MARKET SUPPORT CENTER, INC.

SCI WISCONSIN FUNERAL SERVICES, INC.

SECURITY TRUST PLANS, INC.

SENTINEL SECURITY PLANS, INC.

SOUTHEASTERN FUNERAL HOMES, INC.

ST. LAURENT FUNERAL HOME, INC.

STEPHENS BURIAL ASSOCIATION, INC.

STEPHENS FUNERAL BENEFIT ASSOCIATION, INC.

STEPHENS FUNERAL FUND, INC.

STERLING-ASHTON-SCHWAB FUNERAL HOME, INC.

STERLING-ASHTON-SCHWAB-WITZKE FUNERAL HOME OF CANTONVILLE, INC.

THE FRANK J. FISHER FUNERAL INSURANCE COMPANY

THE KNOLLWOOD CEMETERY COMPANY

THE PORTLAND MEMORIAL, INC.

THEO. C. AUMAN, INC.

THOMAS M. QUINN & SONS, INC.

THWEATT FUNERAL INSURANCE COMPANY, INC.

TYLER MEMORIAL FUNERAL HOME AND CHAPEL, INC.

UNISERVICE CORPORATION

UNIVERSAL MEMORIAL CENTERS I, INC.

UNIVERSAL MEMORIAL CENTERS II, INC.

UNIVERSAL MEMORIAL CENTERS III, INC.

UNIVERSAL MEMORIAL CENTERS V, INC.

UNIVERSAL MEMORIAL CENTERS VI, INC.

VANCOUVER FUNERAL CHAPEL, INC.

WACO MEMORIAL PARK, INC.

WASATCH LAND AND IMPROVEMENT COMPANY

WESTMINSTER GARDENS, INC.

WFG LIQUIDATION CORPORATION

WIEN & WIEN, INC.

WITZKE FUNERAL HOMES, INC.

WMP, INC.

WOODLAWN CEMETERY OF CHICAGO, INC.

WOODLAWN MEMORIAL PARK INC.

6

 

WORKMAN MILL INVESTMENT COMPANY

WPALM, Inc.

ZS ACQUISITION, INC.

7exv4w1

 

Exhibit 4.1

BLACKBOARD INC.

AS ISSUER

AND

U.S. BANK NATIONAL ASSOCIATION,

AS TRUSTEE

3.250% CONVERTIBLE SENIOR NOTES DUE JULY 1, 2027

INDENTURE

DATED AS OF JUNE 20, 2007

 

 

CROSS-REFERENCE TABLE*

	 	 	 	 	 
	TIA Indenture Section	 	Section
	Section 310
	 	(a)(1)	 	9.09
	 
	 	(a)(2)	 	9.09
	 
	 	(a)(3)	 	N.A.**
	 
	 	(a)(4)	 	N.A.
	 
	 	(a)(5)	 	9.09
	 
	 	(b)	 	9.08; 9.10
	 
	 	(c)	 	N.A.
	Section 311
	 	(a)	 	9.13
	 
	 	(b)	 	9.13
	 
	 	(c)	 	N.A.
	Section 312
	 	(a)	 	2.05
	 
	 	(b)	 	12.03
	 
	 	(c)	 	12.03
	Section 313
	 	(a)	 	9.15
	 
	 	(b)(1)	 	N.A.
	 
	 	(b)(2)	 	9.15
	 
	 	(c)	 	9.15; 12.02
	 
	 	(d)	 	9.15
	Section 314
	 	(a)	 	6.02; 6.03
	 
	 	(b)	 	N.A.
	 
	 	(c)(1)	 	12.04(a)
	 
	 	(c)(2)	 	12.04(a)
	 
	 	(c)(3)	 	N.A.
	 
	 	(d)	 	N.A.
	 
	 	(e)	 	12.04(b)
	 
	 	(f)	 	N.A.
	Section 315
	 	(a)	 	9.01(a); 9.01(b)(i)
	 
	 	(b)	 	9.14; 12.02
	 
	 	(c)	 	9.01(a)
	 
	 	(d)	 	9.01(c)
	 
	 	(e)	 	8.11
	Section 316
	 	(a) (last sentence)	 	2.09
	 
	 	(a)(1)(A)	 	8.05
	 
	 	(a)(1)(B)	 	8.04
	 
	 	(a)(2)	 	N.A.
	 
	 	(b)	 	8.07
	 
	 	(c)	 	12.05
	Section 317
	 	(a)(1)	 	8.08; 12.01
	 
	 	(a)(2)	 	8.09; 12.01
	 
	 	(b)	 	2.04; 12.01
	Section 318
	 	(a)	 	12.01
	 
	 	(b)	 	N.A.
	 
	 	(c)	 	12.01

 

			
	*	 	Cross-Reference Table shall not, for any purpose, be deemed a part of this Indenture.

	 
	**	 	N.A. means Not Applicable.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	1	 
	 
	 	 	 	 
	Section 1.01 Definitions
	 	 	1	 
	Section 1.02 Trust Indenture Act Provisions
	 	 	8	 
	Section 1.03 Rules of Construction
	 	 	8	 
	 
	 	 	 	 
	ARTICLE 2 THE SECURITIES
	 	 	9	 
	 
	 	 	 	 
	Section 2.01 Form and Dating
	 	 	9	 
	Section 2.02 Execution and Authentication
	 	 	10	 
	Section 2.03 Registrar, Paying Agent and Conversion Agent
	 	 	11	 
	Section 2.04 Paying Agent to Hold Money and Securities in Trust
	 	 	11	 
	Section 2.05 Securityholder Lists
	 	 	12	 
	Section 2.06 Transfer and Exchange
	 	 	12	 
	Section 2.07 Replacement Securities
	 	 	13	 
	Section 2.08 Outstanding Securities
	 	 	14	 
	Section 2.09 Treasury Securities
	 	 	14	 
	Section 2.10 Temporary Securities
	 	 	14	 
	Section 2.11 Cancellation
	 	 	15	 
	Section 2.12 Additional Transfer and Exchange Requirements
	 	 	15	 
	Section 2.13 CUSIP Numbers
	 	 	16	 
	Section 2.14 Defaulted Interest
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 3 REPURCHASE OF SECURITIES; REDEMPTION
	 	 	17	 
	 
	 	 	 	 
	Section 3.01 Repurchase of Securities upon a Fundamental Change
	 	 	17	 
	Section 3.02 Effect of Fundamental Change Purchase Notice
	 	 	22	 
	Section 3.03 Deposit of Fundamental Change Purchase Price
	 	 	23	 
	Section 3.04 Securities Purchased in Part
	 	 	23	 
	Section 3.05 Repayment to the Company
	 	 	23	 
	Section 3.06 Compliance with Securities Laws upon Purchase of Securities
	 	 	23	 
	Section 3.07 Optional Redemption
	 	 	23	 
	Section 3.08 Notices to Trustee of Redemption
	 	 	24	 
	Section 3.09 Selection of Securities to Be Redeemed
	 	 	24	 
	Section 3.10 Notice of Redemption
	 	 	24	 
	Section 3.11 Effect of Notice of Redemption
	 	 	25	 
	Section 3.12 Deposit of Redemption Price
	 	 	25	 
	Section 3.13 Securities Redeemed in Part
	 	 	26	 
	Section 3.14 Repurchase of Securities on Specified Dates
	 	 	26	 
	 
	 	 	 	 
	ARTICLE 4 [RESERVED]
	 	 	27	 
	 
	 	 	 	 
	ARTICLE 5 CONVERSION
	 	 	27	 

i

 

	 	 	 	 	 
	 	 	Page	 
	Section 5.01 Conversion Privilege
	 	 	27	 
	Section 5.02 Conversion Rate
	 	 	30	 
	Section 5.03 Increase of Conversion Rate upon a Fundamental Change
	 	 	30	 
	Section 5.04 Conversion Procedure
	 	 	31	 
	Section 5.05 Taxes on Conversion
	 	 	33	 
	Section 5.06 Company to Provide Stock
	 	 	33	 
	Section 5.07 Adjustment of Conversion Rate
	 	 	34	 
	Section 5.08 No Adjustment
	 	 	39	 
	Section 5.09 Stockholder Rights Plans
	 	 	40	 
	Section 5.10 Effect of Reclassification, Consolidation, Merger or Sale on
Conversion Privilege
	 	 	40	 
	Section 5.11 Other Adjustments
	 	 	41	 
	Section 5.12 Notice of Adjustment
	 	 	41	 
	Section 5.13 Trustee’s Disclaimer
	 	 	41	 
	Section 5.14 Payment Upon Conversion
	 	 	41	 
	 
	 	 	 	 
	ARTICLE 6 COVENANTS
	 	 	43	 
	 
	 	 	 	 
	Section 6.01 Payment of Securities
	 	 	43	 
	Section 6.02 Reports and Certain Information
	 	 	43	 
	Section 6.03 Compliance Certificates
	 	 	44	 
	Section 6.04 Maintenance of Corporate Existence
	 	 	44	 
	Section 6.05 Stay, Extension and Usury Laws
	 	 	44	 
	Section 6.06 Maintenance of Office or Agency of the Trustee, Registrar,
Paying Agent and Conversion Agent
	 	 	44	 
	Section 6.07 Notice of Default
	 	 	44	 
	 
	 	 	 	 
	ARTICLE 7 CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
	 	 	45	 
	 
	 	 	 	 
	Section 7.01 Company May Consolidate, etc.
	 	 	45	 
	Section 7.02 Successor Substituted
	 	 	45	 
	 
	 	 	 	 
	ARTICLE 8 DEFAULT AND REMEDIES
	 	 	45	 
	 
	 	 	 	 
	Section 8.01 Events of Default
	 	 	45	 
	Section 8.02 Acceleration
	 	 	47	 
	Section 8.03 Other Remedies
	 	 	48	 
	Section 8.04 Waiver of Defaults and Events of Default
	 	 	48	 
	Section 8.05 Control by Majority
	 	 	49	 
	Section 8.06 Limitations on Suits
	 	 	49	 
	Section 8.07 Rights of Holders to Receive Payment and to Convert
	 	 	49	 
	Section 8.08 Collection Suit by Trustee
	 	 	49	 
	Section 8.09 Trustee May File Proofs of Claim
	 	 	50	 
	Section 8.10 Priorities
	 	 	50	 
	Section 8.11 Undertaking for Costs
	 	 	50	 
	Section 8.12 Delay or Omission Not Waiver
	 	 	51	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 9 TRUSTEE
	 	 	51	 
	 
	 	 	 	 
	Section 9.01 Certain Duties and Responsibilities of Trustee
	 	 	51	 
	Section 9.02 Certain Rights of Trustee
	 	 	52	 
	Section 9.03 Trustee Not Responsible for Recitals or Issuance or Securities
	 	 	54	 
	Section 9.04 May Hold Securities
	 	 	54	 
	Section 9.05 Moneys Held in Trust
	 	 	55	 
	Section 9.06 Compensation and Reimbursement
	 	 	55	 
	Section 9.07 Reliance on Officers’ Certificate
	 	 	56	 
	Section 9.08 Disqualification: Conflicting Interests
	 	 	56	 
	Section 9.09 Corporate Trustee Required; Eligibility
	 	 	56	 
	Section 9.10 Resignation and Removal; Appointment of Successor
	 	 	56	 
	Section 9.11 Acceptance of Appointment By Successor
	 	 	58	 
	Section 9.12 Merger, Conversion, Consolidation or Succession to Business
	 	 	58	 
	Section 9.13 Preferential Collection of Claims Against the Company
	 	 	59	 
	Section 9.14 Notice of Defaults
	 	 	59	 
	Section 9.15 Reports by Trustee
	 	 	59	 
	 
	 	 	 	 
	ARTICLE 10 AMENDMENTS, SUPPLEMENTS AND WAIVERS
	 	 	59	 
	 
	 	 	 	 
	Section 10.01 Without Consent of Holders
	 	 	59	 
	Section 10.02 With Consent of Holders
	 	 	60	 
	Section 10.03 Compliance with Trust Indenture Act
	 	 	62	 
	Section 10.04 Revocation and Effect of Consents
	 	 	62	 
	Section 10.05 Notation on or Exchange of Securities
	 	 	62	 
	Section 10.06 Trustee to Sign Amendments, Etc.
	 	 	62	 
	Section 10.07 Effect of Supplemental Indentures
	 	 	62	 
	 
	 	 	 	 
	ARTICLE 11 SATISFACTION AND DISCHARGE
	 	 	63	 
	 
	 	 	 	 
	Section 11.01 Satisfaction and Discharge of the Indenture
	 	 	63	 
	Section 11.02 Repayment to the Company
	 	 	63	 
	 
	 	 	 	 
	ARTICLE 12 MISCELLANEOUS
	 	 	64	 
	 
	 	 	 	 
	Section 12.01 Trust Indenture Act Controls
	 	 	64	 
	Section 12.02 Notices
	 	 	64	 
	Section 12.03 Communications by Holders with Other Holders
	 	 	65	 
	Section 12.04 Certificate and Opinion as to Conditions Precedent
	 	 	65	 
	Section 12.05 Record Date for Vote or Consent of Securityholders
	 	 	65	 
	Section 12.06 Rules by Trustee, Paying Agent, Registrar and Conversion Agent
	 	 	66	 
	Section 12.07 Legal Holidays
	 	 	66	 
	Section 12.08 Governing Law; Jury Trial Waiver
	 	 	66	 
	Section 12.09 No Adverse Interpretation of Other Agreements
	 	 	66	 
	Section 12.10 No Recourse Against Others
	 	 	66	 
	Section 12.11 Successors
	 	 	67	 
	Section 12.12 Multiple Counterparts
	 	 	67	 

iii

 

	 	 	 	 	 
	 	 	Page	 
	Section 12.13 Separability
	 	 	67	 
	Section 12.14 Calculations in Respect of the Securities
	 	 	67	 
	Section 12.15 Table of Contents, Headings, Etc.
	 	 	67	 

			
	Exhibit A	 	Form of Note: 

 - Assignment Form

 - Form of Repurchase Notice

 - Form of Conversion Notice

 - Form of Fundamental Change Purchase Notice

			
	Exhibit B	 	Table showing the Increase in Conversion Rate in connection with a Make-Whole Fundamental Change

iv

 

     THIS INDENTURE, dated as of June 20, 2007, is between BLACKBOARD INC., a Delaware corporation
(the “Company”), and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as trustee (in
such capacity and not in its individual capacity, the “Trustee”).

     In consideration of the premises and the purchase of the Securities by the Holders thereof,
the parties hereto agree as follows for the equal and ratable benefit of the Holders of the
Securities.

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

     Section 1.01 Definitions.

     “Additional Interest” has the meaning specified in Section 8.01.

     “Additional Securities” has the meaning specified in Section 2.02(d).

     “Additional Shares” has the meaning specified in Section 5.03.

     “Affiliate” of any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For
purposes of this definition, “control” (including, with correlative meanings, the terms
“controlling,” “controlled by” and “under common control with”), as used with respect to any
Person, shall mean the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of such Person, whether through the ownership of voting
securities, by agreement or otherwise.

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

     “Agent Members” has the meaning specified in Section 2.01(b).

     “Applicable Conversion Price” means, at any time, an amount equal to $1,000 divided by the
Applicable Conversion Rate in effect at such time, rounded to the nearest cent.

     “Applicable Conversion Rate” has the meaning specified in Section 5.02.

     “Applicable Procedures” means, with respect to any transfer or exchange of beneficial
ownership interests in a Global Security, the rules and procedures of the Depositary, in each case
to the extent applicable to such transfer or exchange.

     “Applicable Stock Price” is equal to the average of the Closing Sale Prices of the Company’s
Common Stock over the Cash Settlement Averaging Period.

     “Bankruptcy Law” has the meaning specified in Section 8.01.

     “Base Conversion Rate” per $1,000 principal amount of Securities is 15.4204, subject to
adjustment as set forth in Section 5.03 and Section 5.07 hereof.

 

 

     “Base Conversion Price” is a dollar amount (initially $64.85) derived by dividing $1,000 by
the Base Conversion Rate.

     “beneficial owner” has the meaning specified in Section 3.01(a).

     “Board of Directors” means the board of directors of the Company or, except as used in the
definition of Fundamental Change and except where the context otherwise requires, any duly
authorized committee of such board of directors.

     “Business Combination” has the meaning specified in Section 5.01.

     “Business Day” means any day, except a Saturday, Sunday or legal holiday on which banking
institutions in The City of New York, New York or the city in which the Corporate Trust Office is
located are authorized or obligated by law or executive order to close.

     “capital stock” has the meaning specified in Section 3.01(a).

     “Cash” means such coin or currency of the United States as at any time of payment is legal
tender for the payment of public and private debts.

     “Cash Settlement Averaging Period” has the meaning specified in Section 5.14.

     “Close of Business” means 5:00 p.m. New York City time.

     “Closing Sale Price” means, on any Trading Day, the reported last sale price per share of the
Common Stock (or, if no last sale price is reported, the average of the bid and ask prices per
share at 4:00 p.m. New York City time or, if more than one in either case, the average of the
average bid and the average ask prices per share) on such date reported by Nasdaq or, if the Common
Stock is not quoted or listed for trading on Nasdaq, as reported by the principal national or
regional securities exchange on which the Common Stock is listed or otherwise as provided in this
Indenture.

     “Common Stock” means, subject to Section 5.10, shares of common stock of the Company, par
value $0.01 per share, at the date of this Indenture or shares of any class or classes resulting
from any reclassification or reclassifications thereof and that 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 that 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 upon 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 the first paragraph of this Indenture until a
successor replaces it pursuant to the applicable provisions of this Indenture, and thereafter
“Company” shall mean such successor Company.

     “Company Notice” has the meaning specified in Section 3.14.

2

 

     “Company Notice Date” has the meaning specified in Section 3.14.

     “Company Order” has the meaning specified in Section 2.02(d).

     “Conversion Agent” has the meaning specified in Section 2.03.

     “Conversion Date” has the meaning specified in Section 5.04(a).

     “Conversion Notice” has the meaning specified in Section 5.04(a).

     “Corporate Trust Office” means the office of the Trustee at which at any time the trust
created by this Indenture shall be principally administered, which office at the date of the
execution of this Indenture is located at One Federal Street, 3rd Floor, Boston, MA
02110, Attention: Corporate Trust Services, or such other office as the Trustee may designate by
written notice to the Company.

     “Custodian” has the meaning specified in Section 8.01.

     “Daily Conversion Value” has the meaning specified in Section 5.14.

     “Daily Settlement Amount” has the meaning specified in Section 5.14.

     “Default” means, when used with respect to the Securities, any event which is or, after notice
or passage of time or both, would be an Event of Default.

     “Depositary” has the meaning specified in Section 2.01(b).

     “Distributed Property” has the meaning specified in Section 5.07(c).

     “Effective Date” has the meaning specified in Section 5.03(b).

     “Event of Default” has the meaning specified in Section 8.01.

     “Exchange Act” means the United States Securities Exchange Act of 1934, as amended, and the
rules and regulations promulgated thereunder, as in effect from time to time.

     “Ex Date” means (i) when used with respect to any dividend or distribution, the first date on
which the Common Stock trades, regular way, on the relevant exchange or in the relevant market from
which the sale price was obtained without the right to receive such dividend or distribution; and
(ii) when used with respect to any tender offer or exchange offer, the first date on which the
Common Stock trades, regular way, on the relevant exchange or in the relevant market from which the
sale price was obtained after the expiration time.

     “Expiration Date” has the meaning specified in Section 5.07(e).

     “Fundamental Change” has the meaning specified in Section 3.01(a).

     “Fundamental Change Company Notice” has the meaning specified in Section 3.01(b).

3

 

     “Fundamental Change Purchase Date” has the meaning specified in Section 3.01(a).

     “Fundamental Change Purchase Notice” has the meaning specified in Section 3.01(c).

     “Fundamental Change Purchase Price” has the meaning specified in Section 3.01(a).

     “GAAP” means generally accepted accounting principles in the United States as set forth in the
opinions and pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial Accounting
Standards Board or in such other statements by such other entity as have been approved by a
significant segment of the accounting profession in the United States, which are in effect from
time to time and consistently applied.

     “Global Security” means a permanent Global Security that is in substantially the form attached
hereto as Exhibit A and that includes the information and schedule called for by footnotes 1 and 2
thereof and which is deposited with the Depositary or its custodian and registered in the name of
the Depositary or its nominee.

     “Holder” or “Securityholder” means the person in whose name a Security is registered in the
Register.

     “Incremental Share Factor” is 9.5605, subject to the same proportional adjustments as the Base
Conversion Rate.

     “Indenture” means this Indenture as amended or supplemented from time to time pursuant to the
terms of this Indenture, including the provisions of the TIA that are explicitly incorporated in
this Indenture by reference to the TIA.

     “Initial Securities” means the Securities issued on the date hereof in the aggregate principal
amount of $165,000,000, and any Securities issued in replacement thereof.

     “Interest Payment Date” has the meaning set forth in the Securities.

     “Interest Payment Record Date” has the meaning set forth in the Securities.

     “Legal Holiday” has the meaning specified in Section 12.07.

     “Make-Whole Fundamental Change” means any transaction or event that constitutes a Fundamental
Change pursuant to clauses (i), (ii) and (iii) under the definition of Fundamental Change specified
in Section 3.01(a), after giving effect to all exceptions and exclusions to such definition.

     “Market Disruption Event” means (a) a failure by the primary exchange or quotation system on
which the Common Stock trades or is quoted to open for trading during its regular trading session
or (b) the occurrence or existence on any Trading Day for the Common Stock 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,

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contracts or future contracts relating to the Common Stock for an aggregate period in excess
of one half hour.

     “Maturity Date” means July 1, 2027.

     “Merger Event” has the meaning specified in Section 5.10.

     “Nasdaq” means the Nasdaq Stock Market.

     “Notice of Default” has the meaning specified in Section 8.01.

     “NYSE” means the New York Stock Exchange.

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

     “Officers’ Certificate” means a certificate signed by at least two Officers of the Company;
provided, however, that for purposes of Section 5.12 and Section 6.03, “Officers’ Certificate”
means a certificate signed by the principal executive officer, principal financial officer or
principal accounting officer of the Company and at least one other Officer of the Company.

     “Opening of Business” means 9:00 a.m. New York City time.

     “Opinion of Counsel” means a written opinion from legal counsel containing, as applicable, the
information specified in Section 12.04. The counsel may be an employee of or counsel to the
Company who is reasonably satisfactory to the Trustee.

     “Paying Agent” has the meaning specified in Section 2.03.

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

     “Principal Amount” of a Security means the Principal Amount as set forth on the face of the
Security.

     “Prospectus” means the Prospectus Supplement dated June 14, 2007.

     “Record Date” means (i) with respect to any payment of interest on the Securities, each June
15 and December 15 (whether or not a Business Day) and (ii) with respect to the events specified in
Section 5.07, the meaning specified in Section 5.07(f).

     “Redemption Date” has the meanings specified in Section 3.07.

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

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     “Reference Property” has the meaning specified in Section 5.10.

     “Register” has the meaning specified in Section 2.03.

     “Registrar” has the meaning specified in Section 2.03.

     “Repurchase Date” has the meaning specified in Section 3.14.

     “Repurchase Price” has the meaning specified in Section 3.14.

     “Repurchase Right” has the meaning specified in Section 3.14.

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

     “SEC” means the United States Securities and Exchange Commission, as from time to time
constituted, created under the Exchange Act, or, if at any time after the execution of this
Indenture the SEC is not existing and performing the duties now assigned to it under the TIA, then
the body performing such duties at such time.

     “Security” or “Securities” means the Company’s 3.250% Convertible Senior Notes due 2027, as
amended or supplemented from time to time pursuant to the terms of this Indenture, that are issued
under this Indenture.

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

     “Securities Custodian” means the Trustee, as custodian with respect to the Global Securities,
or any successor thereto.

     “Settlement Amount” has the meaning specified in Section 5.14.

     “Significant Subsidiary” means any Subsidiary of the Company which has: (i) consolidated
assets or in which the Company and its other Subsidiaries have investments equal to or greater than
10% of the Company’s total consolidated assets; or (ii) consolidated gross revenue equal to or
greater than 10% of the Company’s consolidated gross revenue, measured as at the end of the
Company’s most recently completed fiscal year in the case of consolidated assets or investments or
for the most recently completed fiscal year in case of consolidated gross revenue.

     “Specified Indebtedness” has the meaning specified in Section 8.01(f).

     “Spin-Off” has the meaning specified in Section 5.07(c).

     “Spin-Off Securities” has the meaning specified in Section 5.07(c).

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     “Stock Price” has the meaning specified in Section 5.03(b).

     “Subsidiary” means, in respect of any Person, any corporation, association, partnership or
other business entity of which more than 50% of the outstanding voting stock (as defined in Section
3.01) or other interests (including partnership interests) entitled (without regard to the
occurrence of any contingency) to vote in the election of directors, managers, general partners or
trustees thereof, or persons performing similar functions, 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.

     “TIA” means the United States Trust Indenture Act of 1939, as amended, and the rules and
regulations thereunder as in effect on the date of this Indenture; provided, however, that in the
event the Trust Indenture Act of 1939 is amended after such date, then “TIA” means, to the extent
required by such amendment, the Trust Indenture Act of 1939 as so amended.

     “Trading Day” means a day during which (i) trading in the Common Stock generally occurs and
(ii) there is no Market Disruption Event.

     “Trading Price” on any date of determination means the average of the secondary market bid
quotations per $1,000 principal amount of Securities obtained by the Trustee for $1,000,000
principal amount of the notes at approximately 3:30 p.m., New York City time, on such determination
date from three independent nationally recognized securities dealers the Company selects, provided
that if at least three such bids cannot reasonably be obtained by the Trustee, but two such bids
can reasonably be obtained by the Trustee, then the average of the two bids shall be used, and if
only one such bid can reasonably be obtained by the Trustee, this one bid shall be used. If the
Trustee cannot reasonably obtain at least one bid for $1,000,000 principal amount of the Securities
from a nationally recognized securities dealer or, in the Company’s reasonable judgment, the bid
quotations are not indicative of the secondary market value of the notes, then the Trading Price of
the notes will be deemed to be less than 95% of the product of (a) the Applicable Conversion Rate
of the Securities as of the determination date multiplied by (b) the Closing Sale Price of the
Company’s Common Stock on such determination date. The Trustee will determine the Trading Price of
the Securities unless the Company appoints a different bid solicitation agent, who shall not be the
Company’s affiliate.

     “Trust Officer” means, with respect to the Trustee, any officer within the Corporate Trust
Services department (or any successor department) of the Trustee located at the Corporate Trust
Office of the Trustee, who shall have direct responsibility for the administration of this
Indenture, and also means, with respect to any particular corporate trust matter, any other officer
of the Trustee to whom such corporate trust matter is referred because of such officer’s knowledge
of and familiarity with the particular subject.

     “Trustee” means U.S. Bank National Association, not in its individual capacity, but solely in
its capacity as trustee hereunder, until a successor replaces it pursuant to the applicable
provisions of this Indenture and, thereafter, shall mean such successor Trustee.

     “Underwriters” means Credit Suisse Securities (USA) LLC and Citigroup Global Markets Inc.

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     “Vice President” when used with respect to the Company or the Trustee, means any vice
president, whether or not designated by a number or a word or words added before or after the title
“vice president.”

     “voting stock” has the meaning specified in Section 3.01(a).

     Section 1.02 Trust Indenture Act Provisions. Whenever this Indenture refers to a provision of
the TIA, that provision is incorporated by reference in and made a part of this Indenture. The
Indenture shall also include those provisions of the TIA required to be included herein by the
provisions of the TIA. The following TIA terms used in this Indenture have the following meanings:

     “Commission” means the SEC;

     “indenture securities” means the Securities;

     “indenture security Holder” means a Securityholder;

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

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

     All other terms used in this Indenture that are defined in the TIA, defined by TIA reference
to another statute or defined by any SEC rule and not otherwise defined herein have the meanings
assigned to them therein.

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

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

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

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

     (d) provisions apply to successive events and transactions;

     (e) the term “merger” includes a statutory share exchange and the term “merged” has a
correlative meaning;

     (f) the masculine gender includes the feminine and the neuter;

     (g) references to agreements and other instruments include subsequent amendments
thereto;

     (h) references to “interest” include Additional Interest;

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     (i) “herein,” “hereof,” “hereunder,” “hereinafter” and other words of similar import
refer to this Indenture as a whole and not to any particular Article, Section or other
subdivision;

     (j) unless context otherwise requires, any reference to an “Article” or a “Section”
refers to an Article or Section, as the case may be, of this Indenture;

     (k) “or” is not exclusive; and

     (l) “including” means including without limitation.

ARTICLE 2

THE SECURITIES

     Section 2.01 Form and Dating. The Securities and the corresponding Trustee’s certificate of
authentication shall be substantially in the respective forms set forth in Exhibit A, which Exhibit
A is incorporated in and made part of this Indenture. The Securities may have notations, legends
or endorsements required by law, exchange rule, Applicable Procedures or usage. The Company shall
provide any such notations, legends or endorsements to the Trustee in writing. Each Security shall
be dated the date of its authentication.

     The terms and provisions contained in the Securities shall constitute, and are hereby
expressly made, a part of this Indenture and the Company and the Trustee, by their execution and
delivery of this Indenture, expressly agree to such terms and provisions and to be bound thereby;
provided, however, to the extent permitted by applicable law, if any provision of any Security
conflicts with the express provisions of this Indenture, the provisions of this Indenture shall
govern and be controlling.

     (a) Global Securities In General. Each Global Security shall represent such of
the outstanding Securities as shall be specified therein and each shall provide that it
shall represent the aggregate amount of outstanding Securities from time to time endorsed
thereon and that the aggregate amount of outstanding Securities represented thereby may from
time to time be reduced or increased, as appropriate, to reflect exchanges, purchases or
conversions of such Securities, in each case in accordance with this Indenture. Any
adjustment of the aggregate principal amount of a Global Security to reflect the amount of
any increase or decrease in the amount of outstanding Securities represented thereby shall
be made by the Trustee in accordance with instructions given by the Holder thereof as
required by this Section 2.12, or otherwise in accordance with this Indenture, and shall be
made on the records of the Trustee and the Depositary.

     The Company shall issue and the Trustee shall, upon receipt of a Company Order, authenticate
and deliver in accordance with Section 2.02, initially one or more Global Securities that (i) shall
be registered in the name of Cede & Co. or as otherwise instructed by the Depositary, (ii) shall be
delivered by the Trustee to the Depositary or to the Securities Custodian
pursuant to the Depositary’s instructions and (iii) shall bear legends required for Global
Securities as set forth in Exhibit A hereto.

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     (b) Book Entry Provisions. No members of, or participants in, the Depositary
(“Agent Members”) nor any owner of a beneficial interest in the Securities shall have any
rights under this Indenture with respect to any Global Security held on their behalf by the
“Depositary” or under the Global Security, and the Depositary (including, for this purpose,
its nominee) 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 Security for all purposes
whatsoever. Notwithstanding the foregoing, nothing herein shall (A) 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 (B) impair, as between the Depositary and its Agent Members, the
Applicable Procedures or the operation of customary practices governing the exercise of the
rights of a Holder of any Security.

     None of the Company, the Trustee, the Registrar, any Paying Agent or any agent of any of them
shall have any responsibility or liability for any aspect of the records relating to or payments
made on account of beneficial ownership interests in the Securities, for maintaining, supervising
or reviewing any records relating to such beneficial owner interests, or for any acts or omissions
of a Depositary or for any transactions between a Depositary and any beneficial owner or between or
among beneficial owners.

     (c) Certificated Securities. Certificated Securities shall be issued only
under the circumstances provided in Section 2.12(a)(ii).

     Section 2.02 Execution and Authentication. (a) A duly authorized Officer of the Company
shall sign the Securities for the Company by manual or facsimile signature.

     (b) If an Officer of the Company whose signature is on a Security no longer holds that
office at the time the Trustee authenticates the Security, the Security shall be valid
nevertheless.

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

     (d) The Trustee shall initially authenticate and make available for delivery Securities
for original issue in the aggregate principal amount of up to $165,000,000 upon receipt of a
written order or orders of the Company signed by an Officer of the Company (a “Company
Order”). The Company may, without the consent of the Holders, issue additional Securities
(the “Additional Securities”) with the same terms and with the same CUSIP number as the
Securities in an unlimited aggregate principal amount; provided, however that no such
Additional Securities may be issued unless fungible with the notes offered hereby for U.S.
federal income tax purposes. The Trustee shall authenticate Additional Securities
thereafter in unlimited aggregate principal
amount (so long as permitted by the terms of this Indenture) for original issue upon a
Company Order of the Company in aggregate principal amount as specified in such order. Each
such Company Order shall specify the amount of Securities to be authenticated and the date
on which the Securities are to be authenticated. Such

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Additional Securities shall have
terms identical to the Initial Securities except for issuance dates and prices and with
respect to interest accruing prior to their date of issuance, and will constitute the same
series as the Initial Securities for all purposes hereunder, including, without limitation,
waivers, amendments and offers to purchase.

     (e) The Trustee shall act as the initial authenticating agent. Thereafter, the Trustee
may appoint an authenticating agent acceptable to the Company to authenticate Securities.
An authenticating agent may authenticate Securities whenever the Trustee may do so. Each
reference in this Indenture to authentication by the Trustee includes authentication by such
agent. An authenticating agent shall have the same rights as an Agent to deal with the
Company or an Affiliate of the Company.

     The Securities shall be issuable only in registered form without coupons and only in
denominations of $1,000 principal amount and any integral multiple thereof.

     Section 2.03 Registrar, Paying Agent and Conversion Agent. The Company shall maintain an
office or agency where Securities may be presented for registration of transfer or for exchange
(“Registrar”), an office or agency in the United States where Securities may be presented for
purchase or payment (“Paying Agent”), an office or agency where Securities may be presented for
conversion (“Conversion Agent”), and an office or agency where notices and demands to or upon the
Company in respect of the Securities and this Indenture may be served. The Registrar shall keep a
register of the Securities (“Register”) and of their transfer and exchange.

     The Company may have one or more co-registrars, one or more additional paying agents, and one
or more additional conversion agents. The term “Registrar” includes any co-registrar, including
any named pursuant to Section 6.06. The term “Paying Agent” includes any additional paying agent,
including any named pursuant to Section 6.06. The term “Conversion Agent” includes any additional
conversion agent, including any named pursuant to Section 6.06.

     The Company shall enter into an appropriate agency agreement with any Agent not a party to
this Indenture. 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 Agent not a party to
this Indenture. If the Company fails to maintain a Registrar, Paying Agent or Conversion Agent or
agent for service of notices and demands in any place required by this Indenture, or fails to give
the foregoing notice, the Trustee shall act as such. The Company or any Affiliate of the Company
may act as Paying Agent.

     The Company hereby initially appoints the Trustee as Registrar, Paying Agent and Conversion
Agent in connection with the Securities.

     Section 2.04 Paying Agent to Hold Money and Securities in Trust. Prior to 11:00 a.m.,
New York City time, on each due date of payments in respect of
Securities, or delivery of Cash or shares of Common Stock, as applicable and as provided herein,
the Company shall deposit with the Paying Agent Cash (in immediately available funds if deposited
on the due date) or with the Conversion Agent such number of shares of Common Stock or other
consideration sufficient to make such payments or deliveries when so becoming due. The Company
shall require each

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Paying Agent or Conversion Agent, as applicable (other than the Trustee), to
agree in writing that such Agent shall hold in trust for the benefit of Securityholders or the
Trustee all Cash, Common Stock or other consideration, as applicable, held by such Agent for the
making of payments or deliveries in respect of the Securities and shall notify the Trustee in
writing of any default by the Company in making any such payment or delivery. If the Company or an
Affiliate of the Company acts as Paying Agent or Conversion Agent, as applicable, it shall
segregate the Cash, Common Stock and other consideration, as applicable, held by it as Paying Agent
or Conversion Agent, as applicable, and hold it as a separate trust fund.

     The Company at any time may require a Paying Agent or Conversion Agent, as applicable, to pay
all Cash, Common Stock or other consideration, as applicable, held by it to the Trustee, and the
Trustee may at any time during the continuance of any Default, upon written request to the Paying
Agent or the Conversion Agent, as applicable, require such Paying Agent or Conversion Agent, as
applicable, to pay forthwith to the Trustee all Cash, Common Stock or other consideration, as
applicable, so held in trust by such Paying Agent or Conversion Agent. Upon doing so, the Paying
Agent or the Conversion Agent, as applicable, shall have no further liability for such Cash, Common
Stock or other consideration, as applicable.

     Section 2.05 Securityholder 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 the
Securityholders. If the Trustee is not the Registrar, the Company shall furnish to the Trustee on
or before each Interest Payment Date, and at such other times as the Trustee may request in
writing, a list of the names and addresses of the Securityholders in such form and as of such date
as the Trustee may reasonably request.

     Section 2.06 Transfer and Exchange. (a) Subject to compliance with any applicable additional
requirements contained in Section 2.12, when a Security is presented to a Registrar with a request
to register a transfer thereof or to exchange such Security for an equal principal amount of
Securities of other authorized denominations, the Registrar shall register the transfer or make the
exchange as requested; provided, however, that every Security presented or surrendered for
registration of transfer or exchange shall, if such Security is a Certificated Security, be duly
endorsed or accompanied by an assignment form, in the form included in Exhibit A attached hereto
and, if applicable, a transfer certificate, in the form included in Exhibit A attached hereto, and
in form reasonably satisfactory to the Registrar duly executed by the Holder thereof or its
attorney duly authorized in writing. To permit registration of transfers and exchanges, upon
surrender of any Security for registration of transfer or exchange at an office or agency
maintained pursuant to Section 2.03, the Company shall execute and the Trustee shall, upon receipt
of a Company Order, authenticate Securities of a like aggregate principal amount at the Registrar’s
request. Any exchange or transfer shall be without charge, except that the Company or the Registrar may
require payment of a sum sufficient to cover any tax, assessment or other governmental charge that
may be imposed in relation thereto, other than exchanges pursuant to Section 2.10, Section 10.05,
Article 3 or Article 5, in each case, not involving any transfer.

     Neither the Company, any Registrar nor the Trustee shall be required to exchange or register a
transfer of any Securities or portions thereof in respect of which a Fundamental

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Change Purchase
Notice has been delivered and not validly withdrawn by the Holder thereof (except, in the case of
the purchase of a Security in part, the portion thereof not to be purchased).

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

     (b) Any Registrar appointed pursuant to Section 2.03 or Section 6.06 hereof shall
provide to the Trustee such information as the Trustee may reasonably request in connection
with the delivery by such Registrar of Securities upon transfer or exchange of Securities.

     Any Holder of a Global Security shall, by acceptance of such Global Security, agree that
transfers of beneficial interests in such Global Security may be effected only through a book-entry
system maintained by the Depositary (or its agent), and that ownership of a beneficial interest in
a Global Security shall be required to be reflected in a book-entry system.

     Section 2.07 Replacement Securities. If (a) any mutilated security is surrendered to the
Company, a Registrar or the Trustee, or (b) the Company, the Registrar and the Trustee receive
evidence to their satisfaction of the destruction, loss or theft of any Security, and, in either
case, there is delivered to the Company, the Registrar and the Trustee such security or indemnity
as shall be reasonably required by them to save each of them harmless, then, in the absence of
notice to the Company, such Registrar or the Trustee that such Security has been acquired by a bona
fide or protected purchaser, the Company shall issue, and the Trustee shall, upon receipt of a
Company Order (which the Company agrees to deliver promptly), authenticate and deliver, in exchange
for any such mutilated Security or in lieu of any such destroyed, lost or stolen Security, a new
Security of like tenor and principal amount, bearing a number not contemporaneously outstanding.

     In case any such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable, or purchased by the Company pursuant to Article 3, the Company in its
discretion may, instead of issuing a new Security, pay or purchase such Security, as the case may
be, in accordance herewith.

     Upon the issuance of any new Securities under this Section 2.07, the Company may require the
payment of a sum sufficient to cover any tax, assessment or other governmental charge that may be
imposed in relation thereto and any other reasonable expenses (including the reasonable fees and
expenses of the Trustee or the Registrar) in connection therewith.

     Every new Security issued pursuant to this Section 2.07 in lieu of any mutilated, destroyed,
lost or stolen Security shall constitute an original additional contractual obligation of the
Company, whether or not the mutilated, destroyed, lost or stolen Security shall be at any time
enforceable by anyone, and shall be entitled to all benefits of this Indenture equally and
proportionately with any and all other Securities duly issued and outstanding hereunder.

     The provisions of this Section 2.07 are (to the extent lawful) exclusive and shall preclude
(to the extent lawful) all other rights and remedies with respect to the replacement or payment of
mutilated, destroyed, lost or stolen Securities.

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     Section 2.08 Outstanding Securities. Securities outstanding at any time are all Securities
authenticated by the Trustee, except for those canceled by it, those paid or repurchased pursuant
to Section 2.07, those delivered to it for cancellation and those described in this Section 2.08 as
not outstanding.

     If a Security is replaced pursuant to Section 2.07 (other than a mutilated Security
surrendered for replacement), it ceases to be outstanding unless the Trustee receives, subsequent
to the new Security’s authentication, proof satisfactory to the Company that the replaced Security
is held by a bona fide or protected purchaser. A mutilated Security ceases to be outstanding upon
surrender and replacement thereof pursuant to Section 2.07.

     If the Paying Agent holds, in accordance with the terms of this Indenture, prior to 11:00
a.m., New York City time, on the Maturity Date or on a Fundamental Change Purchase Date, as the
case may be, Cash sufficient to pay all Initial Securities and all Additional Securities then
payable, then on and after such Maturity Date or Fundamental Change Purchase Date, as the case may
be, such Securities shall cease to be outstanding and interest on such Securities shall cease to
accrue.

     If a Security is converted in accordance with Article 5, then on the Conversion Date, such
Security shall cease to be outstanding and interest on such Security shall cease to accrue, unless
there shall be a default in the delivery of the consideration payable hereunder upon such
conversion.

     Subject to the restrictions contained in Section 2.09, a Security does not cease to be
outstanding solely because the Company or an Affiliate of the Company holds the Security.

     Section 2.09 Treasury Securities. In determining whether the Holders of the required
principal amount of Securities have given or concurred in any notice, request, demand,
authorization, direction, waiver or consent, Securities owned by the Company or any other obligor
on the Securities or by any Affiliate of the Company or of such other obligor shall be disregarded
and deemed not to be outstanding for such purposes, except that, for purposes of determining
whether the Trustee shall be protected in relying on any such notice, request, demand,
authorization, direction, waiver or consent, only Securities which a Trust Officer actually knows
are so owned shall be so disregarded. Securities so owned which have been pledged in good faith
shall not be disregarded if the pledgee establishes to the satisfaction of the Trustee the
pledgee’s right so to act with respect to the
Securities and that the pledgee is not, and is not acting on the behalf of, the Company or any
other obligor on the Securities or any Affiliate of the Company or of such other obligor. If
requested by the Trustee, the Company agrees to notify the Trustee in writing of the existence of
any such Treasury Securities or Securities owned by the Company, any other obligor on the
Securities, or, to the knowledge of the Company, any Affiliate of the Company.

     Section 2.10 Temporary Securities. Until definitive Securities are ready for delivery, the
Company may prepare and execute, and, upon receipt of a Company Order, the Trustee shall
authenticate and deliver, temporary Securities. Temporary Securities shall be substantially in the
form of definitive Securities but may have variations that the Company reasonably considers
appropriate for temporary Securities. After the preparation of definitive Securities, the

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temporary Securities shall be exchangeable for definitive Securities upon surrender of the
temporary Securities at the office or agency of the Company designated for such purpose pursuant to
Section 2.03, without charge to the Holder. Upon surrender for cancellation of any one or more
temporary Securities, the Company shall execute and the Trustee shall, upon receipt of a Company
Order (which the Company agrees to deliver promptly), authenticate and deliver in exchange therefor
a like principal amount of definitive Securities of authorized denominations. Until so exchanged
the temporary Securities shall in all respects be entitled to the same benefits under this
Indenture as definitive Securities.

     Section 2.11 Cancellation. The Company at any time may deliver Securities to the Trustee
for cancellation. The Registrar, Paying Agent and Conversion Agent shall forward to the Trustee
any Securities surrendered to them for transfer, exchange, payment or conversion. The Trustee
shall cancel all Securities surrendered for transfer, exchange, payment, conversion or cancellation
in accordance with its customary procedures. The Company may not issue new Securities to replace
Securities that it has paid or delivered to the Trustee for cancellation or that any Holder has
converted pursuant to Article 5.

     Section 2.12 Additional Transfer and Exchange Requirements. (a) (i) All Securities that are
purchased pursuant to Article 3 or otherwise acquired by the Company shall be delivered to the
Trustee for cancellation. If the Company shall acquire any of the Securities, such acquisition
shall not operate as a repurchase or satisfaction of the indebtedness represented by such
Securities unless and until the same are delivered to the Trustee for cancellation.

          (ii) Certificated Securities shall be issued in exchange for interests in the Global Securities
only (x) if the Depositary notifies the Company that it is unwilling or unable to continue as
Depositary for the Global Securities or if it at any time ceases to be a “clearing agency”
registered under the Exchange Act, if so required by applicable law or regulation, and a successor
Depositary is not appointed by the Company within 90 days of such notice or (y) if an Event of
Default has occurred and is continuing. In any such case, the Company shall execute, and the
Trustee shall, upon receipt of a Company Order (which the
Company agrees to deliver promptly), authenticate and deliver Certificated Securities in an
aggregate principal amount equal to the principal amount of such Global Securities in exchange
therefor. Certificated Securities issued in exchange for beneficial interests in Global Securities
shall be registered in such names and shall be in such authorized denominations as the Depositary,
pursuant to instructions from its Agent Members or otherwise in accordance with the Applicable
Procedures, shall instruct the Trustee. The Trustee shall deliver or cause to be delivered such
Certificated Securities to the Persons in whose name such Securities are so registered. Such
exchange shall be effected in accordance with the Applicable Procedures. In the event that the
Certificated Securities are not issued to each such beneficial owner promptly after the Registrar
has received a request from the Depositary to issue such Certificated Securities, the Company
expressly acknowledges, with respect to the right of any Holder to pursue a remedy pursuant to
Section 8.06 or 8.07 hereof, the right of any beneficial holder of Securities to pursue such remedy
with respect to the portion of the Global Security that represents such Beneficial Owner’s
Securities as if such Certificated Securities had been issued.

          (iii) Notwithstanding any other provisions of this Indenture other than the provisions set
forth in Section 2.12(a)(ii), a Global Security may not be transferred except as

15

 

a whole by the
Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or
another nominee of the Depositary or by the Depositary or any such nominee to a successor
Depositary or a nominee of such successor Depositary.

     (b) Transfer and Exchange of Certificated Securities. In the event that
Certificated Securities are issued in exchange for beneficial interests in Global Securities
in accordance with Section 2.12(a)(ii), and, on or after such event, Certificated Securities
are presented by a Holder to the Registrar with a request:

     (x) to register the transfer of the Certificated Securities to a person who shall take
delivery thereof in the form of Certificated Securities only; or

     (y) to exchange such Certificated Securities for an equal principal amount of
Certificated Securities of other authorized denominations,

such Registrar shall register the transfer or make the exchange as requested; provided, however,
that the Certificated Securities presented or surrendered for register of transfer or exchange
shall be duly endorsed or accompanied by a written instrument of transfer in accordance with the
proviso to the first sentence of Section 2.06(a).

     (c) Transfers of Certificated Securities for Beneficial Interest in Global
Securities. In the event that Certificated Securities are issued in exchange for
beneficial interests in Global Securities and, thereafter, the events or conditions
specified in Section 2.12(a)(ii) which required such exchange shall cease to exist, the
Company shall mail notice to the Trustee and to the Holders stating that Holders may
exchange Certificated Securities for interests in Global Securities by complying with the
procedures set forth in this Indenture and (ii) briefly describing such procedures and the
events or circumstances requiring that such notice be given. Thereafter, if Certificated
Securities are presented by a Holder to a Registrar with a request:

     (x) to register the transfer of such Certificated Securities to a Person who will take
delivery thereof in the form of a beneficial interest in a Global Security; or

     (y) to exchange such Certificated Securities for an equal principal amount of
beneficial interests in a Global Security, which beneficial interests will be owned by the
Holder transferring such Certificated Securities,

the Registrar shall register the transfer or make the exchange as requested by canceling such
Certificated Security and causing the aggregate principal amount of the applicable Global Security
to be increased accordingly and, if no such Global Security is then outstanding, the Company shall
issue and the Trustee shall, upon receipt of a Company Order (which the Company agrees to deliver
promptly) authenticate and deliver a new Global Security; provided, however, that the Certificated
Securities presented or surrendered for registration of transfer or exchange shall be duly endorsed
or accompanied by a written instrument of transfer in accordance with the proviso to the first
sentence of Section 2.06(a).

     Section 2.13 CUSIP Numbers. The Company in issuing the Securities may use one or more
“CUSIP,” “ISIN” or other similar numbers (if then generally in use), and, if so, the Trustee

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shall
use “CUSIP,” “ISIN” or other similar numbers in notices of purchase as a convenience to Holders;
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 Securities or as contained in any notice of a
purchase and that reliance may be placed only on the other identification numbers printed on the
Securities, and any such purchase shall not be affected by any defect in or omission of such
numbers. The Company shall promptly notify the Trustee of any change in the “CUSIP,” “ISIN” or
other similar numbers.

     Section 2.14 Defaulted Interest. If the Company defaults on a payment of interest on the
Securities, it shall pay the defaulted interest, plus (to the extent permitted by law) any interest
payable on the defaulted interest, in accordance with the terms hereof, to the Persons who are
Holders on a subsequent special record date, which date shall be at least five Business Days prior
to the payment date. The Company shall fix such special record date and payment date in a
reasonable manner. At least 10 days before such special record date, the Company shall mail to
each Holder a notice that states the special record date, the payment date and the amount of
defaulted interest, and interest payable on defaulted interest, if any, to be paid. The Company
may make payment of any defaulted interest in any other lawful manner not inconsistent with the
requirements (if applicable) of any securities exchange on which the Securities may be listed and,
upon such notice as may be required by such exchange.

ARTICLE 3

REPURCHASE OF SECURITIES; REDEMPTION

     Section 3.01 Repurchase of Securities upon a Fundamental Change. (a) In the event a Fundamental Change shall occur at any time when any Securities remain
outstanding, each Holder shall have the right, at such Holder’s option, to require the Company to
purchase all of such Holders’ Securities or any portion of the principal amount thereof that is
equal to $1,000 or an integral multiple thereof on a date specified by the Company (the
"Fundamental Change Purchase Date”) that is not less than 15 nor more than 45 Business Days after
the date the Company mails the Fundamental Change Company Notice pursuant to Section 3.01(b), at a
purchase price in Cash equal to 100% of the principal amount of the Securities tendered for
purchase, plus accrued and unpaid interest, if any, to, but not including, the Fundamental Change
Purchase Date (the “Fundamental Change Purchase Price”) (unless the Fundamental Change Purchase
Date is between an Interest Payment Record Date and the following Interest Payment Date, in which
case the Company will pay any accrued interest to the Holder of record on the Interest Payment
Record Date), subject to satisfaction by or on behalf of any Holder of the requirements set forth
in Section 3.01(c).

     A “Fundamental Change” shall be deemed to have occurred upon the occurrence of any of the
following:

	 	(i)	 	any “person” or “group” (other than the Company
or its employee benefit plans) becomes the “beneficial owner,” directly
or indirectly, of shares of the Company’s voting stock representing 50%
or more of the total voting power of all outstanding classes of

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	 	 	 	the Company’s voting stock or has the power, directly or indirectly, to
elect a majority of the members of the board of directors of the
Company;
	 
	 	(ii)	 	the Company consolidates with, or merges with
or into, another Person or, in a single transaction or a series of
transactions, the Company sells, assigns, conveys, transfers, leases or
otherwise disposes of all or substantially all of the Company’s assets,
or any Person consolidates with, or merges with or into, the Company,
provided, however, that for purposes of this clause (ii) the following
transactions will be deemed not to be a Fundamental Change:

	 	(1)	 	any transaction (A) that does not result in any reclassification,
conversion, exchange or cancellation of outstanding shares of the Company’s
capital stock or (B) pursuant to which holders of the Company’s capital stock
immediately prior to the transaction are entitled to exercise, directly or
indirectly, 50% or more of the total voting power of all shares of capital
stock entitled to vote generally in the election of directors of the continuing
or surviving person immediately after the transaction; or
	 
	 	(2)	 	any merger, share exchange, transfer of assets or similar transaction
solely 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.

	 	(iii)	 	the Common Stock into which the Securities are
then convertible ceases to be listed on the NYSE, Nasdaq or another
national securities exchange and is not then quoted on an established
automated over-the-counter trading market in the United States;
	 
	 	(iv)	 	during any period of two consecutive years,
individuals who at the beginning of such period constituted the
Company’s Board of Directors (together with any new directors whose
election to such Board of Directors or whose nomination for election by
the Company’s shareholders was approved by a vote of at least a
majority of the Company’s directors then still in office who were
either directors at the beginning of such period or whose election or
nomination for election was previously so approved) cease for any
reason to constitute a majority of the Company’s board of directors
then in office; or
	 
	 	(v)	 	the Company’s stockholders approve any plan or
proposal for the Company’s liquidation or dissolution.

     Notwithstanding anything to the contrary set forth in this Indenture, a Fundamental Change or
Make-Whole Fundamental Change shall be deemed not to have occurred in the case

18

 

of a merger or
consolidation, if at least 90% of the consideration (excluding Cash payments for fractional shares
and Cash payments pursuant to dissenters’ appraisal rights) in the merger or consolidation consists
of common stock (or depositary shares or receipts in respect thereof) of a company traded on a
national securities exchange or quoted on the Nasdaq Global Market or Nasdaq Global Select Market
(or which shall be so traded or quoted when issued or exchanged in connection with the transaction)
and as a result of such transaction or transactions the Securities are convertible into cash and
the consideration received by holders of the Company’s Common Stock as set forth under Section
5.10.

     For purposes of this Section 3.01:

	 	(1)	 	“person” and “group” shall have the meanings given to them for
purposes of Sections 13(d) and 14(d) of the Exchange Act or any successor
provisions, and the term “group” includes any group acting for the purpose of
acquiring, holding or disposing of securities within the meaning of Rule
13d-5(b)(1) under the Exchange Act, or any successor provision;
	 
	 	(2)	 	a “beneficial owner” shall be determined in accordance with
Rule 13d-3 under the Exchange Act, as in effect on the date of this Indenture;
	 
	 	(3)	 	“beneficially own” and “beneficially owned” have meanings
correlative to that of beneficial owner;
	 
	 	(4)	 	“board of directors” means the board of directors or other
governing body charged with the ultimate management of any person;
	 
	 	(5)	 	“capital stock” means: (i) in the case of a corporation,
corporate stock; (ii) in the case of an association or business entity, any and
all shares, interests, participations, rights or other equivalents (however
designated) of corporate stock; (iii) in the case of a partnership or limited
liability company, partnership interests (whether general or limited) or
membership interests; or (iv) any other interest or participation that confers
on a person the right to receive a share of the profits and losses of, or
distributions of assets of, the issuing person; and
	 
	 	(6)	 	“voting stock” means any class or classes of capital stock or
other interests then outstanding and normally entitled (without regard to the
occurrence of any contingency) to vote in the election of the board of
directors.

             (b) Notice of Fundamental Change. No later than 15 days prior to the
anticipated effective date of a Fundamental Change or five days after such later date on
which the Company has actual knowledge of such Fundamental Change, the Company shall notify
the Trustee of the Fundamental Change Purchase Date and shall mail a written notice of the
Fundamental Change (the “Fundamental Change Company Notice”) to each Holder (and to
beneficial owners as required by applicable law) in

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accordance with Section 12.02. The
notice shall include the form of a Fundamental Change Purchase Notice to be completed by the
Holder and shall state, as applicable:

	 	(i)	 	the events causing such Fundamental Change and
the date of such Fundamental Change;
	 
	 	(ii)	 	that the Holder has a right to require the
Company to purchase the Holder’s Securities;
	 
	 	(iii)	 	the date by which the Fundamental Change
Purchase Notice must be delivered to the Paying Agent in order for a
Holder to exercise the Fundamental Change purchase right;
	 
	 	(iv)	 	the Fundamental Change Purchase Date;
	 
	 	(v)	 	the Fundamental Change Purchase Price;
	 
	 	(vi)	 	the procedures that the Holder must follow to
exercise its Fundamental Change purchase right under this Section 3.01;
	 
	 	(vii)	 	the names and addresses of the Paying Agent
and the Conversion Agent;
	 
	 	(viii)	 	that the Securities must be surrendered to the Paying Agent to
collect payment of the Fundamental Change Purchase Price;
	 
	 	(ix)	 	that the Fundamental Change Purchase Price for
any Security as to which a Fundamental Change Purchase Notice has been
duly given
and not withdrawn shall be paid promptly following the later of the
Fundamental Change Purchase Date and the time of surrender of such
Security;
	 
	 	(x)	 	the Base Conversion Rate, the number of
Additional Shares (to the extent determinable) and the Incremental
Share Factor;
	 
	 	(xi)	 	that the Securities with respect to which a
Fundamental Change Purchase Notice has been given may be converted
pursuant to Article 5 of this Indenture only if either (i) the
Fundamental Change Purchase Notice has been withdrawn in accordance
with the terms of this Indenture or (ii) there shall be a default in
the payment of the Fundamental Change Purchase Price;
	 
	 	(xii)	 	the procedures for withdrawing a Fundamental
Change Purchase Notice;
	 
	 	(xiii)	 	that, unless the Company defaults in making payment of such
Fundamental Change Purchase Price, interest on Securities

20

 

	 	 	 	surrendered
for purchase by the Company shall cease to accrue on and after the
Fundamental Change Purchase Date; and
	 
	 	(xiv)	 	the CUSIP number(s) of the Securities.

     If any of the Securities are in the form of a Global Security, then the Company shall modify
such notice to the extent necessary to accord with the Applicable Procedures for repurchases.

     At the Company’s request, the Trustee shall give the Fundamental Change Company Notice on
behalf of the Company and at the Company’s expense; provided, however, that the Company makes such
request at least three Business Days (unless a shorter period shall be consented to by the Trustee)
prior to the date by which such Fundamental Change Company Notice must be given to the Holders in
accordance with this Section 3.01(b); provided further, however, that the text of such notice shall
be prepared by the Company.

     (c) Fundamental Change Purchase Notice. A Holder may exercise its right
specified in Section 3.01(a) upon delivery of a written notice (which shall be in
substantially the form included in Exhibit A hereto and which may be delivered by letter,
overnight courier, hand delivery, facsimile transmission or in any other written form) of
the exercise of such rights (a “Fundamental Change Purchase Notice”) to and actually
received by a Paying Agent at any time prior to the Close of Business on the Business Day
immediately preceding the Fundamental Change Purchase Date. The Fundamental Change Purchase
Notice must state:

	 	(i)	 	if Certificated Securities are to be delivered,
the certificate numbers of the Securities that the Holder shall deliver
to be purchased;
	 
	 	(ii)	 	the portion of the principal amount of the
Securities that the Holder shall deliver to be purchased, which portion
must be in principal amounts of $1,000 or an integral multiple thereof;
and
	 
	 	(iii)	 	that such Securities are being tendered for
and shall be purchased by the Company on the Fundamental Change
Purchase Date pursuant to the terms and conditions specified in this
Indenture.

     The delivery of such Security to any Paying Agent (together with all necessary endorsements)
at the office of such Paying Agent shall be a condition to the receipt by the Holder of the
Fundamental Change Purchase Price; provided, however, that such Fundamental Change Purchase Price
shall be paid pursuant to this Section 3.01 only if the Security so delivered to the Paying Agent
shall conform in all material respects to the description thereof in the related Fundamental Change
Purchase Notice.

     The Company shall purchase from the Holder thereof, pursuant to this Section 3.01, a portion
of a Security if the principal amount of such portion is $1,000 or an integral multiple of $1,000.
Provisions of this Section 3.01 that apply to the purchase of all of a Security also apply to the
purchase of such a portion of such Security.

21

 

     Notwithstanding anything herein to the contrary, any Holder delivering to the Paying Agent the
Fundamental Change Purchase Notice contemplated by this Section 3.01(c) shall have the right to
withdraw such Fundamental Change Purchase Notice at any time prior to the Close of Business on the
Business Day immediately preceding the Fundamental Change Purchase Date by delivery of a written
notice of withdrawal to the Paying Agent in accordance with Section 3.02(b).

     A Paying Agent shall promptly notify the Company once each Business Day of the receipt by it
of any Fundamental Change Purchase Notices or written notices of withdrawal thereof.

     (d) Notwithstanding anything herein to the contrary, in the case of Global Securities,
any Fundamental Change Purchase Notice may be delivered or withdrawn, and such Securities
may be surrendered or delivered for purchase, in accordance with the Applicable Procedures.

     Section 3.02 Effect of Fundamental Change Purchase Notice. (a) Upon receipt by any Paying
Agent of a Fundamental Change Purchase Notice, the Holder of the Security in respect of which such
Fundamental Change Purchase Notice was given shall (unless such Fundamental Change Purchase Notice
is withdrawn as specified below) thereafter be entitled to receive the Fundamental Change Purchase
Price with respect to such Security. Such Fundamental Change Purchase Price shall be paid to such
Holder promptly following the later of (i) the Fundamental Change Purchase Date (provided such
Holder has satisfied the conditions in Section 3.01(c) with respect to such Security) and (ii) the
time of delivery of such Security to a Paying Agent by the Holder thereof in the manner required by
Section 3.01(c). A Security in respect of which a Fundamental Change Purchase Notice has been
given by the Holder thereof may not be converted pursuant to Article 5 hereof on or after
the date of the delivery of such Fundamental Change Purchase Notice, unless either (i) such
Fundamental Change Purchase Notice has first been validly withdrawn in accordance with Section
3.02(b); or (ii) there shall be a default in the payment of the Fundamental Change Purchase Price,
provided, that the conversion right with respect to such Security shall terminate at the Close of
Business on the date immediately prior to the date such default is cured and such Security is
purchased in accordance herewith.

     (b) A Fundamental Change Purchase Notice may be withdrawn by any Holder delivering such
Fundamental Change Purchase Notice upon delivery of a written notice of withdrawal (which
may be delivered by mail, overnight courier, hand delivery, facsimile transmission or in any
other written form) to and actually received by the Paying Agent at any time prior to the
Close of Business on the Business Day immediately preceding the Fundamental Change Purchase
Date, specifying:

	 	(i)	 	if Certificated Securities are to be withdrawn,
the certificate numbers of the Securities in respect of which such
notice of withdrawal is being submitted;
	 
	 	(ii)	 	the principal amount of the Securities in
respect of which such notice of withdrawal is being submitted, which
principal amount must be $1,000 or an integral multiple thereof; and

22

 

	 	(iii)	 	the principal amount, if any, of the
Securities that remains subject to the original Fundamental Change
Purchase Notice and that has been or shall be delivered for purchase by
the Company.

     Section 3.03 Deposit of Fundamental Change Purchase Price. Prior to 10:00 a.m., New York City
time, on a Fundamental Change Purchase Date, the Company shall deposit with the Paying Agent (or if
the Company or an Affiliate of the Company is acting as the Paying Agent, shall segregate and hold
in trust as provided in Section 2.04) an amount in Cash (in immediately available funds if
deposited on such Fundamental Change Purchase Date) sufficient to pay the aggregate Fundamental
Change Purchase Price of all the Securities or portions thereof that are to be purchased on that
Fundamental Change Purchase Date.

     If a Paying Agent holds, in accordance with the terms hereof, at 10:00 a.m., New York City
time, on a Fundamental Change Purchase Date, Cash sufficient to pay the aggregate Fundamental
Change Purchase Price of all Securities for which a Fundamental Change Purchase Notice has been
delivered and not validly withdrawn in accordance with this Indenture, then, on and after such
Fundamental Change Purchase Date, such Securities shall cease to be outstanding and interest on
such Securities shall cease to accrue, whether or not such Securities are delivered to the Paying
Agent, and the rights of the Holders in respect thereof shall terminate (other than the right to
receive the Fundamental Change Purchase Price upon delivery of such Securities by their Holders to
the Paying Agent).

     Section 3.04 Securities Purchased in Part. Upon surrender of a Security that is to be repurchased in part, the Company shall issue and
the Trustee shall authenticate for the Holder, at the expense of the Company, a new Security equal
in aggregate amount to the unpurchased portion of the Security surrendered.

     Section 3.05 Repayment to the Company. To the extent that the aggregate amount of Cash
deposited by the Company pursuant to Section 3.03 exceeds the aggregate Fundamental Change Purchase
Price of the Securities or portions thereof that the Company is obligated to purchase on the
Fundamental Change Purchase Date, then, within one day after the Fundamental Change Purchase Date,
the Paying Agent shall return any such excess Cash to the Company.

     Section 3.06 Compliance with Securities Laws upon Purchase of Securities. When complying with
the provisions of Article 3 hereof (provided that such offer or purchase constitutes an “issuer
tender offer” for purposes of Rule 13e-4 (which term, as used herein, includes any successor
provision thereto) under the Exchange Act at the time of such offer or purchase), and subject to
any exemptions available under applicable law, the Company shall:

     (a) comply with Rule 13e-4, Rule 14e-1 and any other tender offer rules under the
Exchange Act that may then be applicable; and

     (b) otherwise comply with all federal and state securities laws so as to permit the
rights and obligations in connection with any purchase pursuant to this Article 3 to be
exercised in the time and in the manner specified herein.

     Section 3.07 Optional Redemption. On or after July 1, 2011, the Company, at its option, may
redeem the Securities in whole at any time or in part from time to time, in any

23

 

integral multiple
of $1,000, for cash at a price equal to 100% of the principal amount of the Securities to be
redeemed (the “Redemption Price”), together with accrued but unpaid interest thereon, if any, up
to, but not including, the date selected for redemption (the “Redemption Date”); provided that if
the Redemption Date is between the Close of Business on a Record Date and the Opening of Business
on the related Interest Payment Date, accrued but unpaid interest, if any, will be payable to the
Holders in whose names the Securities are registered at the Close of Business on the relevant
Record Date.

     The Company may not redeem the Securities, in whole or in part, upon less than 30 nor more
than 60 days prior notice by first-class mail, postage prepaid, with a copy to the Trustee, to each
Holder at the address of such Holder appearing in the security register.

     Section 3.08 Notices to Trustee of Redemption. If the Company elects to redeem Securities
pursuant to Section 3.07, it shall notify the Trustee at least 15 days prior to the mailing of the
notice of redemption (unless a shorter notice period shall be satisfactory to the Trustee) of the
Redemption Date and the aggregate principal amount of Securities to be redeemed.

     Section 3.09 Selection of Securities to Be Redeemed. If the Company elects to redeem
Securities pursuant to Section 3.07 and less than all the Securities are to be redeemed, the
Trustee shall select the Securities to be redeemed on a pro rata basis. The Trustee shall make the
selection from Securities outstanding not previously called for redemption. Securities and
portions of them the Trustee selects shall be in amounts of $1,000 principal amount or positive
integral multiples of $1,000 principal amount. The Trustee shall promptly notify the Company in
writing of the Securities selected for redemption and the principal amount thereof to be redeemed.

          The Registrar need not transfer or exchange any Securities selected for redemption, except the
unredeemed portion of the Securities redeemed in part. Also, the Registrar need not transfer or
exchange any Securities for a period of 15 days before any selection of Securities for redemption
and ending at the Close of Business on the date on which the relevant notice of redemption is
deemed to have been given.

          If any Security selected for partial redemption is converted in part before termination of the
conversion right with respect to the portion of the Security so selected, the converted portion of
such Security shall be deemed (so far as may be) to be the portion selected for redemption.
Securities which have been converted during a selection of Securities to be redeemed may be treated
by the Trustee as outstanding for the purpose of such selection.

     Section 3.10 Notice of Redemption At least 30 days but not more than 60 days before a
Redemption Date, the Company shall mail by first-class mail a notice of redemption to each Holder
whose Securities are to be redeemed.

          The notice shall identify the Securities and the aggregate principal amount thereof to be
redeemed and shall state:

          (i) the Redemption Date;

24

 

     (ii) the Redemption Price, plus the amount of accrued and unpaid interest to be paid on
the Securities called for redemption;

     (iii) the Applicable Conversion Rate and Applicable Conversion Price;

     (iv) the name and address of the Paying Agent and Conversion Agent;

     (v) the date on which the right to convert the principal of the Securities called for
redemption will terminate and the place or places where such Securities may be surrendered
for conversion;

     (vi) that Securities are convertible prior to the Close of Business on the date that is
one Business Day prior to the Redemption Date;

     (vii) that Holders who want to convert Securities must satisfy the requirements in
Article 5;

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

     (ix) that unless the Company shall default in the payment of the Redemption Price and
interest (including Additional Interest, if any) on Securities called for redemption ceases
to accrue on and after the Redemption Date and that the Securities will cease to be
convertible after the Close of Business on the Business Day immediately preceding the
Redemption Date; and

     (x) the CUSIP number or numbers, as the case may be, of the Securities.

          At the Company’s request, upon reasonable prior notice, the Trustee shall give the notice of
redemption in the Company’s name and at the Company’s expense; provided that the form and content
of such notice shall be prepared by the Company.

     Section 3.11 Effect of Notice of Redemption. Once notice of redemption is mailed, Securities
called for redemption become due and payable on the Redemption Date at the Redemption Price, plus
accrued and unpaid interest (including Additional Interest, if any) to, but excluding, the date of
redemption, and, on and after such date (unless the Company shall default in the payment of the
Redemption Price), such Securities shall cease to bear interest and Additional Interest. Upon
surrender to the Paying Agent, such Securities shall be paid at the Redemption Price, plus accrued
interest (including Additional Interest, if any) to, but excluding, the Redemption Date, subject to
the proviso to Section 3.07.

     Section 3.12 Deposit of Redemption Price. On or before the Redemption Date, the Company shall
deposit with the Paying Agent money in funds immediately available on the Redemption Date
sufficient to pay the Redemption Price of and accrued interest (including Additional Interest, if
any) on all Securities to be redeemed on that date. The Paying Agent shall return to the Company,
as soon as practicable, any money not required for that purpose.

25

 

     Section 3.13 Securities Redeemed in Part. Upon surrender of a Security that is redeemed in
part, the Company shall execute and the Trustee shall authenticate for the Holder a new Security or
Securities in an aggregate principal amount equal to the unredeemed portion of the Security
surrendered.

          If any Security selected for partial redemption is converted in part, the converted portion of
such Security shall be deemed to be the portion selected for redemption.

     Section 3.14 Repurchase of Securities on Specified Dates. (a) At the option of the Holder, a Holder shall have the right (a “Repurchase Right”) to
cause the Company to repurchase on July 1, 2011, July 1, 2017 and July 1, 2022 (each, a “Repurchase
Date”) all or a portion of the Securities held by such Holder for cash at a price per Security
equal to 100% of the aggregate principal amount of the Security (the “Repurchase Price”), together
with accrued but unpaid interest thereon, if any, up to, but not including, the Repurchase Date;
provided that if the Repurchase Date is between the Close of Business on a Record Date and the
Opening of Business on the related Interest Payment Date, accrued but unpaid interest, if any, will
be payable to the Holders in whose names the Securities are registered at the Close of Business on
the relevant Record Date.

          Unless the Company has given a notice of redemption pursuant to Section 3.07, the Company
shall give written notice of each Repurchase Date to the Holders (the “Company Notice”). The
Company Notice shall be sent by first-class mail to the Trustee and to each Holder not less than 30
days nor more than 60 days prior to any Repurchase Date (the “Company Notice Date”). The Company
will also disseminate the Company Notice via a press release through Dow Jones & Company, Inc. or
Bloomberg Business News or other similarly broad public medium that is customary for such press
releases. Each Company Notice shall include a form of Option of Holder to Elect Repurchase Notice
to be completed by a Holder that wishes to exercise its Repurchase Right and shall state:

     (i) the Repurchase Date;

     (ii) the Repurchase Price, plus the amount of accrued and unpaid interest (including
Additional Interest, if any) to be paid on the Securities called for redemption;

     (iii) the then Applicable Conversion Rate and Applicable Conversion Price;

     (iv) the name and address of the Paying Agent and Conversion Agent;

     (v) that Holders who want to convert Securities must satisfy the requirements in
Article 5;

     (vi) that Securities must be surrendered to the Paying Agent to collect the Repurchase
Price;

     (vii) that unless the Company shall default in the payment of the Repurchase Price and
interest (including Additional Interest, if any) on Securities will cease to accrue on and
after the Repurchase Date and that the Securities will cease to be convertible at

26

 

the Close
of Business on the Business Day immediately preceding the Repurchase Date; and

     (viii) the CUSIP number or numbers, as the case may be, of the Securities.

          At the Company’s request, the Trustee shall give such Company Notice in the Company’s name and
at the Company’s expense; provided, however, that the Company makes such request at least three
Business Days prior to the date by which such Company Notice must be given to the Holders and that,
in all cases, the text of such Company Notice shall be prepared by the Company.

          To exercise a Repurchase Right, a Holder shall deliver to the Trustee, or to a Paying Agent
designated by the Company for such purpose in the Company Notice, at any time from the Opening of
Business on the date that is 30 Business Days prior to the Repurchase Date until the Close of
Business on the fifth business day prior to the Repurchase Date, (i) the Option of Holder to Elect
Repurchase Notice on the back of the Securities with respect to which the Repurchase Right is being
exercised, or any other form of written notice substantially similar to the Option of Holder to
Elect Repurchase Notice, in each case, duly completed and signed, with appropriate signature
guarantee, and (ii) such Securities with respect to which the Repurchase Right is being exercised,
duly endorsed for transfer to the Company, and the Holder of such Securities shall be entitled to
receive from the Trustee, or such Paying Agent, a nontransferable receipt of deposit evidencing
such deposit.

          In the event a Repurchase Right shall be exercised in accordance with the terms hereof, the
Company shall, on the later of the Repurchase Date and the time of compliance will all delivery
requirements with respect to the Securities to be repurchased, deposit with the Trustee or with a
Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust in
accordance with Section 2.04), an amount of Cash (to be available on the Repurchase Date)
sufficient to pay the Repurchase Price (plus accrued and unpaid interest, including Additional
Interest, if any) with respect to all of the Securities which are to be repurchased on that date.

          (b) Notwithstanding anything herein to the contrary, any Holder delivering to the Paying Agent
the Option of Holder to Elect Repurchase Notice contemplated by this Section 3.14 shall have the
right to withdraw such notice at any time prior to the close of business on the second business day
prior to the Repurchase Date by delivery of a written notice of withdrawal to the Paying Agent at
the principal office of the Paying Agent in accordance with Section 3.11.

.

ARTICLE 4 [RESERVED]

ARTICLE 5

CONVERSION

     Section 5.01 Conversion Privilege. (a) Subject to the provisions of this Article Five, the
Securities will be convertible into Cash, and, if applicable, Common Stock or other property as
provided herein, only in the circumstances described below in clauses (i)-(v), and prior to the

27

 

Close of Business on the Business Day immediately preceding the Maturity Date, unless such
Securities have been previously redeemed or repurchased. A Holder’s right to convert a Security
called for redemption will terminate at the Close of Business on the Business Day immediately
preceding the redemption date or repurchase date for the Security, unless the Company defaults in
making the payment due upon redemption or repurchase. In addition, if a Holder has exercised its
right to require the Company to repurchase Securities under Article 3, such Holder may convert its
Securities only if it withdraws its notice and converts its Securities before the Close of Business
on the Business Day immediately preceding such repurchase date. Subject to the foregoing, the
Securities are convertible if any of the following conditions is satisfied:

     (i) Conversion Upon Satisfaction of Common Stock Price Condition. Prior to January 1, 2027,
during any quarter commencing after June 30, 2007, and only during such quarter, if the Closing
Sale Price of the Common Stock for at least 20 Trading Days during the period of 30 consecutive
Trading Days ending on the last Trading Day of the quarter immediately preceding such quarter
(appropriately adjusted to take into account the occurrence, during such 30 consecutive Trading-Day
period, of any event requiring adjustment of the Base Conversion Price under this Indenture) is
more than 130% of the Base Conversion Price on such 30th Trading Day;

     (ii) Conversion Upon Satisfaction of Trading Price Condition. During the five consecutive
Business-Day period after any five consecutive Trading-Day period in which the Trading Price per
$1,000 principal amount of Securities, as determined following a request by a Holder in accordance
with the procedures described below in Section 5.01(c), for each Trading Day of such five
Trading-Day period was less than 95% of the product of the average of the Closing Sale Prices of
the Common Stock for such five Trading-Day period and the Applicable Conversion Rate;

     (iii) Conversion Upon Notice of Redemption. Such Security has been called for redemption by
the Company pursuant to Section 3.07 and the redemption has not yet occurred, so long as the Holder
surrenders such Security for conversion (or if the Security is held in book-entry form, complete
and deliver to the Depository appropriate instructions in accordance with the Applicable
Procedures) prior to the Close of Business on the date that is one Business Day prior to the
applicable Redemption Date (provided that if the Company shall default in paying the Redemption
Price when due, the conversion right shall continue until such time as such default is cured and
such Security is redeemed), whether or not the Security is otherwise convertible at such time;

     (iv) Conversion Prior to Maturity. At any time beginning on January 1, 2027 and ending at the
Close of Business on the Business Day immediately preceding the Maturity Date.

     (v) Conversion Upon Specified Corporate Transactions. (A) There occurs a distribution to all
or substantially all holders of Common Stock of rights, warrants or options entitling them (for a
period commencing no earlier than the date of distribution and expiring not more than 60 days after
the date of distribution) to subscribe for or purchase shares of Common Stock at a price less than
the average Closing Sale Prices of the Common Stock for the 10 Trading Days immediately preceding
the date such distribution was first publicly announced; or

28

 

     (B) There occurs a distribution to all or substantially all holders of Common Stock of Cash or
other assets, evidences of Company indebtedness, rights or warrants to purchase or subscribe for
Capital Stock or other securities of the Company, where the fair market value of such distribution
per share of Common Stock (as determined by the Board of Directors, whose determination shall be
conclusive evidence of such fair market value) exceeds 10% of the Closing Sale Price of the Common
Stock on the Trading Day immediately preceding the date such distribution was first publicly
announced;

provided that any Holder of a Security shall have no right to convert any Security pursuant to this
Section 5.01(a)(v) (A) or (B) if such Holder otherwise participates in the distribution described
in this Section 5.01(a)(v) (A) or (B) on an as-converted basis (assuming for this purpose that the
Securities are convertible solely into Common Stock at the Applicable Conversion Rate) without
conversion of such Holder’s Securities;

     (C) If the Company is party to a consolidation, merger, share exchange, sale of all or
substantially all of its assets or other similar transaction (a “Business Combination”), in each
case pursuant to which the Common Stock would be converted into (or holders of Common Stock would
be entitled to receive) cash, securities or other property; or

     (D) A Make-Whole Fundamental Change occurs.

     In the case of the foregoing Sections 5.01(a)(v)(A) and 5.01(a)(v)(B), the Company shall cause
a notice of such distribution to be filed with the Trustee and the Conversion Agent and to be
mailed to each Holder of Securities no later than 20 Trading Days prior to the Ex Date for such
distribution. Once the Company has given such notice, Holders may surrender their Securities for
conversion at any time thereafter until the earlier of the Close of Business on the Business Day
immediately preceding the Ex Date or the Company’s announcement that such distribution will not
take place; provided that any Holder may withdraw its Securities if such distribution does not
occur.

     The Company shall give notice to all Holders and the Trustee prior to the anticipated
effective date of any such Business Combination or Make-Whole Fundamental Change or, if later,
promptly upon becoming aware of such transaction.

     In the case of a Business Combination under Section 5.01(a)(v)(C), the Holder may surrender
its Securities for conversion at any time from and after the effective date of such transaction
until and including the date that is thirty days after the effective date of such transaction.

     In the case of a Make-Whole Fundamental Change, a Holder may surrender its Securities for
conversion at any time from and including the date that is 10 days prior to the anticipated
Effective Date of the Make-Whole Fundamental Change until and including the date that is thirty
days after the Effective Date of such Make-Whole Fundamental Change; provided however, the Company
will have no obligation to deliver any Settlement Amount in respect of such conversion prior to the
Effective Date of such Make-Whole Fundamental Change.

     (b) For each quarter of the Company commencing prior to January 1, 2027, the Trustee,
on behalf of the Company, shall determine, on the first Business Day

29

 

following the last
Trading Day of the immediately preceding quarter, whether the Securities are convertible
pursuant to clause (i) of Section 5.01(a), and, if so, shall notify the Company in writing.
If the conditions set forth in clause (i) of Section 5.01(a) have been met, the Company
shall so notify the Holders.

     (c) The Trustee shall have no obligation to determine the Trading Price of the
Securities pursuant to clause (ii) of Section 5.01(a) unless the Company has requested such
determination in writing; and the Company shall have no obligation to make such
request unless a Holder of the Securities provides the Company with reasonable evidence
that the Trading Price per $1,000 principal amount of Securities is reasonably likely to be
less than 95% of the product of the Closing Sale Price and the Applicable Conversion Rate
then in effect per $1,000 principal amount of Securities. If a Holder provides such
evidence or if the Company otherwise elects to require such determination, the Company shall
instruct the Trustee to determine the Trading Price of the Securities beginning on the next
Trading Day and on each successive Trading Day until the Trading Price of the Securities is
greater than or equal to 95% of the product of the Closing Sale Price of the Common Stock
and the Applicable Conversion Rate. The Trustee shall promptly notify the Company of its
determination on each such day. If the condition set forth in clause (ii) of Section
5.01(a) has been met, the Company shall so notify the Holders.

     Section 5.02 Conversion Rate. If the Applicable Stock Price is less than or equal to the Base
Conversion Price, the “Applicable Conversion Rate” will be the Base Conversion Rate, or if the
Applicable Stock Price is greater than the Base Conversion Price, the Applicable Conversion Rate
will be determined in accordance with the following formula:

     Base Conversion Rate + [ (Applicable Stock Price-Base Conversion Price) x Incremental Share Factor ]

Applicable Stock Price

The Applicable Conversion Rate, including any Additional Shares added to the Applicable
Conversion Rate in connection with a Make-Whole Fundamental Change, will not exceed 24.9813 (which
is equal to a conversion price of $40.03 per share), however such maximum Applicable Conversion
Rate will be adjusted for all Base Conversion Rate adjustments as described in Section 5.07 hereof.

     Section 5.03 Increase of Conversion Rate upon a Fundamental Change. (a) If a Holder elects
to convert its Securities in connection with a Make-Whole Fundamental Change that occurs prior to
July 1, 2011, then the Applicable Conversion Rate of the Securities being converted by such Holder
shall be increased by an additional number of shares of Common Stock (the “Additional Shares”) set
forth in Exhibit B. For the avoidance of doubt, the increases provided for in this Section 5.03(a)
shall only be made with respect to the Securities being converted in connection with such
Make-Whole
Fundamental Change and shall not be effective as to any Securities not so converted.
For purposes of this Section 5.03, a conversion shall be deemed to be “in connection” with a
Make-Whole Fundamental Change to the extent that notice of conversion is received by the conversion
agent on a date from and including the date that is ten (10) Trading Days prior to the anticipated
Effective Date of such Make-Whole

30

 

Fundamental Change until and including the date that is 30 days
after the Effective Date of such Make-Whole Fundamental Change.

     (b) The increase in the Applicable Conversion Rate, expressed as a number of Additional
Shares to be received per $1,000 principal amount of Securities, will be determined by the
Company by reference to the table attached as Exhibit B hereto, based
on the date the Make-Whole Fundamental Change occurs or becomes effective (the
“Effective Date”) and the price paid or deemed to be paid per share of Common Stock in the
transaction constituting the Make-Whole Fundamental Change (the “Stock Price”); provided
that if a holder of the Common Stock receives only Cash in connection with a Fundamental
Change described in clause (ii) of the definition thereof contained in Section 3.01(a), the
Stock Price shall be the Cash amount paid per share. In all other cases, the Stock Price
will be the average of the Closing Sale Price of the Common Stock over the five consecutive
Trading-Day period ending on the Trading Day preceding the Effective Date, provided that if
the Stock Price is between two Stock Price amounts in the table or the Effective Date is
between two Effective Dates in the table, the Company shall determine the increase in the
Applicable Conversion Rate by a straight-line interpolation between the number of Additional
Shares set forth for the next higher and next lower Stock Price amounts and the next
earliest and next latest Effective Dates, based on a 365 day year, as applicable. If (1)
the Stock Price is greater than $300.00 per share of Common Stock (subject to adjustment
pursuant to the following sentence as of any date on which the Base Conversion Rate is
adjusted pursuant to Section 5.07), no Additional Shares will be added to the Applicable
Conversion Rate, and (2) the Stock Price is less than $40.03 per share (subject to
adjustment pursuant to the following sentence as of any date on which the Base Conversion
Date is adjusted pursuant to Section 5.07), no Additional Shares will be added to the
Applicable Conversion Rate. The Stock Price on and after the Base Conversion Rate is
adjusted pursuant to Section 5.07 will equal the Stock Price applicable immediately prior to
such adjustment, multiplied by a fraction, the numerator of which is the Base Conversion
Rate immediately prior to the adjustment giving rise to the Stock Price adjustment and the
denominator of which is the Base Conversion Rate as so adjusted.

     Section 5.04 Conversion Procedure. (a) The right of conversion attaching to any Security may
be exercised at any time during which conversion is permitted in accordance with Section 5.01 (i)
if such Security is represented by a Global Security, by book-entry transfer to the Conversion
Agent through the facilities of the Depositary in accordance with the Applicable Procedures, or
(ii) if such Security is represented by a Certificated Security, by delivery of such Security at
the specified office of the Conversion Agent, accompanied, in either case, by: (i) a duly signed
and completed conversion notice, in the form as set forth on the reverse of Security attached
hereto as Exhibit A (a “Conversion Notice”); (2) if such Certificated Security has been lost,
stolen, destroyed or mutilated, a notice to the Conversion Agent in accordance with Section 2.07
regarding the loss, theft, destruction or mutilation of the Security; (3) appropriate endorsements
and transfer documents if required by the Conversion Agent; and (4) payment of any tax or duty, in
accordance with Section 5.05, which may be payable in respect of any transfer involving the issue
or delivery of the Common Stock in the name of a Person other than the Holder of the Security. The
date on which the Holder satisfies all of those requirements is the “Conversion Date.” The Company
shall deliver to the Holder through a Conversion Agent a

31

 

certificate for the number of whole shares
of Common Stock issuable upon the conversion (and Cash in lieu of any fractional shares pursuant to
Section 5.14) as promptly as practicable after the Conversion Date, but in no event later than the
third Business Day after the later of the Conversion Date or the Cash Settlement Averaging Period;
provided that in the case of a conversion in connection
with a Business Combination or Make-Whole Fundamental Change, settlement shall not occur prior
to the Effective Date of such a Business Combination or Make-Whole Fundamental Change.

     (b) The Securities shall be deemed to have been converted immediately prior to the Close of
Business on the Conversion Date. Delivery of shares of Common Stock (if any) will be accomplished
by delivery to the Conversion Agent of certificates for the relevant number of shares, other than
in the case of Holders of Securities in book entry form with DTC, which shares shall be delivered
in accordance with Applicable Procedures. A Holder will not be entitled to any rights as a Holder
of the Company’s Common Stock, including, among other things, the right to vote and receive
dividends and notices of stockholder meetings, until the conversion is effective and to the extent
that any shares of the Company’s Common Stock are issued upon conversion.

     (c) No payment or adjustment shall be made for accrued but unpaid interest, if any, on a
converted Security or for dividends or distributions on shares of Common Stock issued upon
conversion of a Security. By delivering to the holder the shares of Common Stock issuable upon
conversion, together with a cash payment in lieu of any fractional shares, the Company will satisfy
its obligation with respect to the conversion of the Securities. Accordingly, accrued interest
(including Additional Interest, if any) on the Securities is deemed paid in full rather than
cancelled, forfeited or extinguished. Notwithstanding the foregoing, if Securities are converted
after the Close of Business on a regular Record Date and prior to the Opening of Business on the
next Interest Payment Date, including the Maturity Date, Holders of such Securities at the Close of
Business on such regular Record Date shall receive the accrued but unpaid interest payable on such
Securities on the corresponding Interest Payment Date notwithstanding the conversion. In such
event, such Security, when surrendered for conversion, must be accompanied by delivery of payment
to the Conversion Agent in an amount equal to the accrued but unpaid interest payable on such
Interest Payment Date on the portion so converted. If such payment does not accompany such
Security, the Security shall not be converted; provided that no such payment shall be required if
(1) any overdue interest exists at the time of conversion with respect to the notes being converted
but only to the extent of such overdue interest, (2) the Holder surrenders its Securities for
conversion after the Close of Business on the Record Date relating to the Interest Payment Date on
July 1, 2011 and the Interest Payment Date at the Maturity Date, or (3) such Security has been
called for redemption on a Redemption Date within the period between the Close of Business on such
Record Date and the Opening of Business on such Interest Payment Date. If the Company defaults in
the payment of interest payable on the Interest Payment Date, the Conversion Agent shall promptly
repay such funds to the Holder.

     (d) A Holder may convert a portion of a Security equal to $1,000 or any integral multiple
thereof. Provisions of this Indenture that apply to conversion of all of a Security also apply to
conversion of a portion of a Security. Upon surrender of a Security that is converted in part, the
Company shall execute, and the Trustee shall, upon receipt of an order from the

32

 

Company,
authenticate and deliver to the Holder, a new Security equal in principal amount to the unconverted
portion of the Security surrendered.

     Section 5.05 Taxes on Conversion. If a Holder converts a Security, the Company shall pay any documentary, stamp or similar
issue or transfer taxes or duties relating to the issuance or delivery of shares of Common Stock
upon exercise of such conversion rights. However, the Holder shall pay any tax or duty which may
be payable relating to any transfer involving the issuance or delivery of shares of Common Stock in
a name other than the Holder’s name. The Conversion Agent may refuse to deliver the certificate
representing shares of Common Stock being issued in a name other than the Holder’s name until the
Conversion Agent receives a sum sufficient to pay any tax or duties which will be due because the
shares are to be issued in a name other than the Holder’s name. Nothing herein shall preclude any
tax withholding required by law or regulation.

     The Company may, at its option, set-off withholding taxes due with respect to Securities
against payments of Cash and Common Stock on the Securities. In the case of any such set-off
against Common Stock delivered upon conversion of the Securities, such Common Stock shall be valued
based on the arithmetic average of the Closing Sale Prices for each Trading Day in the relevant
Cash Settlement Averaging Period.

     Section 5.06 Company to Provide Stock. (a) The Company shall, prior to the issuance of any
Securities hereunder, and from time to time as may be necessary, reserve at all times and keep
available, free from preemptive rights, out of its authorized but unissued Common Stock, a
sufficient number of shares of Common Stock deliverable upon conversion of all of the Securities.

     (b) All shares of Common Stock that may be issued upon conversion of the Securities
shall be newly issued shares or shares held in the treasury of the Company, shall be duly
authorized, validly issued, fully paid and nonassessable and shall be free of any preemptive
rights and free of any lien or adverse claim.

     (c) The Company shall comply with all applicable securities laws regulating the offer
and delivery of any Common Stock upon conversion of Securities and, if the Common Stock is
then listed or quoted on the NYSE, Nasdaq or any other United States national or regional
securities exchange or other market, shall list or cause to have quoted and keep listed and
quoted the shares of Common Stock issuable upon conversion of the Notes to the extent
permitted or required by the rules of such exchange or market; provided, however, that, if
the rules of such automated quotation system or exchange permit the Company to defer the
listing of such Common Stock until the first conversion of the Securities into Common Stock
in accordance with the provisions of this Indenture, the Company covenants to list such
Common Stock issuable upon conversion of the Securities in accordance with the requirements
of such automated quotation system or exchange at such time.

     (d) Notwithstanding anything herein to the contrary, nothing herein shall give to any
Holder any rights as a creditor solely in respect of its right to conversion.

33

 

     Section 5.07 Adjustment of Conversion Rate. The Base Conversion Rate shall be adjusted (and
Incremental Share Factor shall be adjusted in the same manner) from time to time by the Company if
any of the following events
occur, except that the Company will not make any adjustment if Holders of Securities may
participate, as a result of holding the Securities, in the transactions described without having to
convert their Securities:

     (a) If the Company, at any time or from time to time while any of the Securities are
outstanding, issues shares of its Common Stock as a dividend or distribution on shares of
Common Stock, or if the Company effects a share split or share combination in respect of the
Common Stock, then the Base Conversion Rate shall be adjusted based on the following
formula:

	 	 	 	 	 
	where
	 	 	 	 
	 
	 	 	 	 
	CR0

	 	=
	 	the Base Conversion Rate in effect immediately
prior to the Ex Date of such dividend or
distribution, or effective date of such
subdivision or combination, as applicable;
	 
	 	 	 	 
	CR’

	 	=
	 	the Base Conversion Rate in effect on and after
the Ex Date or effective date of such subdivision
or combination;
	 
	 	 	 	 
	OS0

	 	=
	 	the number of shares of Common Stock outstanding
immediately prior to the Ex Date or effective date
of such subdivision or combination; and
	 
	 	 	 	 
	OS’

	 	=
	 	the number of shares of Common Stock outstanding
on and after the Ex Date or effective date of such
subdivision or combination, after giving effect to
the dividend or distribution.

     If any dividend or distribution of the type described in this Section 5.07(a) is declared but
not so paid or made, or the outstanding shares of Common Stock are not subdivided or combined, as
the case may be, the Base Conversion Rate shall again be adjusted to the Base Conversion Rate which
would then be in effect if such dividend, distribution, subdivision or combination had not been
declared.

     (b) If the Company, at any time or from time to time while any of the Securities are
outstanding, issues to all holders of its outstanding shares of Common Stock any rights or
warrants entitling them for a period of not more than 60 calendar days to subscribe for or
purchase shares of Common Stock at a price per share less than the average of the Closing
Sale Prices for the five consecutive Trading-Day period ending on the Business Day
immediately preceding the date of announcement of such issuance, the Base Conversion Rate
shall be adjusted based on the following formula:

where

34

 

	 	 	 	 	 
	CR0

	 	=
	 	the Base Conversion Rate in effect immediately prior to the Ex Date for such issuance;
	 
	 	 	 	 
	CR’

	 	=
	 	the Base Conversion Rate in effect on and after the Ex Date for such issuance;
	 
	 	 	 	 
	OS0

	 	=
	 	the number of shares of Common Stock outstanding immediately prior to the Ex Date for such issuance;
	 
	 	 	 	 
	X

	 	=
	 	the total number of shares of Common Stock issuable pursuant to such rights or warrants; and
	 
	 	 	 	 
	Y

	 	=
	 	the number of shares of Common Stock equal to the aggregate price payable to exercise such rights or
warrants divided by the average of the Closing Sale Prices per share for the five consecutive
Trading-Day period ending on the Business Day immediately preceding the date of announcement of the
issuance of such rights or warrants.

     To the extent that shares of Common Stock are not delivered pursuant to such rights or
warrants prior to or upon the expiration or termination of such rights or warrants, the Base
Conversion Rate shall be readjusted to the Base Conversion Rate which would then be in effect had
the adjustments made upon the issuance of such rights or warrants been made on the basis of the
delivery of only the number of shares of Common Stock actually delivered. In the event that such
rights or warrants are not so issued, the Base Conversion Rate shall again be adjusted to be the
Base Conversion Rate which would then be in effect if the announcement with respect to such rights,
warrants or convertible securities had not been made.

     In determining whether any rights or warrants entitle the holders to subscribe for or purchase
shares of Common Stock at less than the average of the Closing Sale Prices for the five consecutive
Trading-Day period ending on the Business Day immediately preceding the date of announcement of
such issuance, 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 thereof, the value of such consideration, if other than
Cash, to be determined in good faith by the Board of Directors.

     (c) If the Company shall, by dividend or otherwise, distribute to all holders of its
Common Stock shares of any class of capital stock of the Company (other than Common Stock as
covered by Section 5.07(a)), evidences of its indebtedness or other non-Cash assets or
property of the Company (excluding (i) dividends and distributions and rights or warrants
covered by Section 5.07(a), Section 5.07(b) or Section 5.07(e), (ii) dividends or
distributions covered by Section 5.07(d) and (iii) to the extent provided in Section 5.09,
rights distributed pursuant to a stockholder rights plan) (any of such shares of Capital
Stock, indebtedness, or other assets or property hereinafter in this Section 5.07(c) called
the “Distributed Property”), then, in each such case the Base Conversion Rate shall be
adjusted based on the following formula:

where

35

 

	 	 	 	 	 
	CR0

	 	=
	 	the Base Conversion Rate in effect immediately prior to the Ex Date for such distribution;
	 
	 	 	 	 
	CR’

	 	=
	 	the Base Conversion Rate in effect on and after the Ex Date for such distribution;
	 
	 	 	 	 
	SP0

	 	=
	 	the average of the Closing Sale Prices over the five consecutive Trading-Day period ending on the
Trading Day immediately preceding the Ex Date for such distribution; and
	 
	 	 	 	 
	FMV

	 	=
	 	the fair market value (as determined by the Company’s Board of Directors) of the shares of capital stock
of the Company, evidences of indebtedness, assets or property distributed with respect to each
outstanding share of Common Stock on the Ex Date for such distribution;

     provided that if the then fair market value (as so determined) of the portion of the
Distributed Property so distributed applicable to one share of Common Stock is equal to or greater
than SP0 as set forth above, in lieu of the foregoing adjustment, adequate provision shall be made
so that each Holder shall have the right to receive, for each $1,000 principal amount of Securities
upon conversion, the amount of Distributed Property such holder would have received had such holder
owned a number of shares of Common Stock equal to the Applicable Conversion Rate on the record
date. If such dividend or distribution is not so paid or made, the Base Conversion Rate shall
again be adjusted to be the Base Conversion Rate that would then be in effect if such record date
had not been fixed. If the Board of Directors determines the fair market value of any distribution
for purposes of this Section 5.07(c) by reference to the actual or when issued trading market for
any securities, it shall in doing so consider the prices in such market over the same period used
in computing the average of the Closing Sale Prices of the Common Stock.

     With respect to an adjustment pursuant to this Section 5.07(c) where there has been a payment
of a dividend or other distribution on the Common Stock consisting of shares of capital stock of
any class or series, or similar equity interest, of or relating to a Subsidiary or other business
unit of the Company (a “Spin-Off,” and any such dividend or distribution of Common Stock, shares of
capital stock or equity interests being “Spin-Off Securities”), the Base Conversion Rate shall be
adjusted based on the following formula:

where

	 	 	 	 	 
	CR0

	 	=
	 	the Base Conversion Rate in effect immediately
prior to the Ex Date for the distribution of the
Spin-Off Securities;
	 
	 	 	 	 
	CR’

	 	=
	 	the Base Conversion Rate in effect from and after
the Ex Date for the distribution of the Spin-Off
Securities;
	 
	 	 	 	 
	FMV0

	 	=
	 	the average of the Closing Sale Prices of the
capital stock or similar equity interest
distributed to holders of Common Stock applicable
to one share of Common Stock

36

 

	 	 	 	 	 
	 

	 	 	 	over the first 10 consecutive Trading-Day period commencing on, and including,
the fifth Trading Day after the Ex Date for such distribution; and
	 
	 	 	 	 
	MP0

	 	=
	 	the average of the Closing Sale Prices of
Common Stock over the first 10 consecutive
Trading-Day period commencing on, and
including, the fifth Trading Day after the
Ex Date for such distribution.

     (d) If a cash dividend or distribution is made to all holders of Common Stock (other
than (i) in connection with the Company’s liquidation, dissolution or winding up or (ii)
distributions described in Section 5.07(e)), the Base Conversion Rate shall be adjusted
based on the following formula:

where

	 	 	 	 	 
	CR0

	 	=
	 	the Base Conversion Rate in effect at the Close of Business on the Business Day immediately prior to
the Ex Date for such dividend or distribution;
	 
	 	 	 	 
	CR’

	 	=
	 	the Base Conversion Rate in effect on and after the Ex Date for such distribution;
	 
	 	 	 	 
	SP0

	 	=
	 	the average of the Closing Sale Prices of the Common Stock for the five consecutive Trading-Day period
ending on the Trading Day immediately preceding the Ex Date for such dividend or distribution; and
	 
	 	 	 	 
	C

	 	=
	 	the amount in cash per share the Company dividends or distributes to holders of Common Stock;

     provided that if the portion of the cash so distributed applicable to one share of Common
Stock is equal to or greater than SP0 as set forth above, in lieu of the foregoing
adjustment, adequate provision shall be made so that each Holder shall have the right to receive,
for each $1,000 principal amount upon conversion, the amount of cash such Holder would have
received had such Holder owned a number of shares of Common Stock equal to the Applicable
Conversion Rate on the record date. If such dividend or distribution is not so paid or made, the
Base Conversion Rate shall again be adjusted to be the Base Conversion Rate that would then be in
effect if such dividend or distribution had not been declared.

     (e) If the Company or any of its Subsidiaries makes a payment in respect of a tender
offer or exchange offer for all or any portion of the Common Stock, to the extent that the
cash and value of any other consideration included in the payment per share of Common Stock
validly tendered or exchanged exceeds the Closing Sale Price of the Common Stock on the
tenth Trading Day next succeeding the last date on which tenders or exchanges may be made
pursuant to such tender or exchange offer (such last date, as it may be amended, the
“expiration date”), the Base Conversion Rate shall be increased based on the following
formula:

37

 

where

	 	 	 	 	 
	CR0

	 	=
	 	the Base Conversion Rate in effect immediately
before the Close of Business on the expiration
date;
	 
	 	 	 	 
	CR’

	 	=
	 	the Base Conversion Rate in effect on and after
the Close of Business on the expiration date;
	 
	 	 	 	 
	AC

	 	=
	 	the aggregate value of all cash and any other
consideration (as determined in good faith by the
Company’s Board of Directors) paid or payable for
shares purchased in such tender or exchange offer;
	 
	 	 	 	 
	OS0

	 	=
	 	the number of shares of Common Stock outstanding
immediately prior to the date such tender or
exchange offer expires (without giving effect to
the purchase of shares validly tendered and not
withdrawn pursuant to the tender or exchange offer
but excluding shares held in treasury);
	 
	 	 	 	 
	OS’

	 	=
	 	the number of shares of Common Stock outstanding
as of the last time tenders or exchanges could
have been made pursuant to such tender or exchange
offer (after giving effect to the purchase of
shares validly tendered and not withdrawn pursuant
to the tender or exchange offer or shares held in
treasury); and
	 
	 	 	 	 
	SP’

	 	=
	 	the Closing Sale Price on the tenth Trading Day
immediately following the expiration date.

     If the Company is obligated to repurchase 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 or any portion of such purchases are rescinded, the Base Conversion Rate shall again be
adjusted to be the Base Conversion Rate that would then be in effect if such tender or exchange
offer had not been made or had only been made in respect of the purchases that had been effected.

     (f) For purposes of this Section 5.07 the term “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).

     (g) If application of the formulas provided in Sections 5.07(a), 5.07(b), 5.07(c),
5.07(d) or 5.07(e) would result in a decrease in the Base Conversion Rate, no adjustment to
the Base Conversion Rate shall be made except in the case of a combination or reverse split
of the Common Stock.

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     (h) If one or more events occur requiring an adjustment be made to the Base Conversion
Rate for a particular period, adjustments to the Base Conversion Rate shall be determined by
the Company’s Board of Directors to reflect the combined impact of such Base Conversion Rate
adjustments, as set out in this Section 5.07, during such period.

     For the avoidance of doubt, for purposes of this Section 5.07, in the event of any
reclassification of the Common Stock, as a result of which the Securities become convertible into
more than one class of Common Stock, if an adjustment to the Base Conversion Rate is required
pursuant to Section 5.07(d), references in this Section to one share of Common Stock or Closing
Sale Price of one share of Common Stock shall be deemed to refer to a unit or to the price of a
unit consisting of the number of shares of each class of Common Stock into which the Securities are
then convertible equal to the numbers of shares of such class issued in respect of one share of
Common Stock in such reclassification. The above provisions of this paragraph shall similarly
apply to successive reclassifications.

     Section 5.08 No Adjustment. No adjustment in the Base Conversion Rate or Incremental Share
Factor shall be required unless the adjustment would result in a change in the Base Conversion Rate
of at least 1.00%; provided, however, that any adjustment which by reason of this Section 5.08 is
not required to be made shall be carried forward and taken into account in subsequent adjustments
and in connection with any conversion of Securities. All calculations under this Article 5 shall
be made to the nearest one-ten thousandth (1/10,000) of a cent or to the nearest one-ten thousandth
(1/10,000) of a share, as the case may be, provided that the Company shall make any carry forward
adjustments not otherwise effected on each anniversary of the issue date of the Securities, upon
conversion pursuant to Article 5, upon repurchase or redemption pursuant to Article 3, and five
Business Days prior to the Maturity Date of the Securities.

     No adjustment in the Base Conversion Rate or Incremental Share Factor need be made for (i)
issuances of Common Stock pursuant to any present or future Company plan for reinvestment of
dividends or interest payable on the Company’s securities or the investment of additional optional
amounts thereunder in shares of Common Stock, (ii) upon the issuance of any shares of Common Stock
or options or rights to purchase shares of Common Stock pursuant to any present or future employee,
director or consultant benefit plan or program of or assumed by the Company or any of its
Subsidiaries or (iii) upon the issuance of any shares of Common Stock pursuant to any option,
warrant, right or exercisable, exchangeable or convertible security not described either in (ii)
above or in Section 5.07.

     No adjustment to the Base Conversion Rate or Incremental Share Factor need be made pursuant to
Section 5.07 for a transaction if Holders are permitted to participate in the transaction without
conversion on a basis and with notice that the Board of Directors of the Company determines in good
faith to be fair and appropriate in light of the basis and notice on which holders of Common Stock
participate in the transaction.

     No adjustment to the Base Conversion Rate or Incremental Share Factor need be made for accrued
and unpaid interest, if any.

39

 

     Whenever a provision of the Indenture requires the calculation of an average of the Closing
Sale Price over a span of multiple days, the Company will make appropriate adjustments to account
for any adjustment to the Base Conversion Rate and Incremental Share Factor as described above at
any time during the period from which the average is to be calculated.

     Section 5.09 Stockholder Rights Plans. Upon conversion of the Securities, the Holders shall
receive, in addition to any shares of Common Stock issuable upon such conversion, any associated
rights issued under any future stockholder rights plan the Company adopts that provides that each
share of Common Stock issued upon conversion of the Securities at any time prior to the
distribution of separate certificates representing such rights will be entitled to receive such
rights unless, prior to conversion, the rights have separated from the Common Stock, expired,
terminated or been redeemed or exchanged in accordance with such rights plan, and no adjustment
shall be made to the Base Conversion Rate pursuant to Section 5.07. If the rights have separated
from the Common Stock, the Base Conversion Rate and Incremental Share Factor shall be adjusted at
the time of separation as if the Company distributed to all holders of Common Stock, shares of
Capital Stock, evidences of indebtedness or assets as described in Section 5.07(c), subject to
readjustment in the event of the expiration, termination or redemption of such rights.

     Section 5.10 Effect of Reclassification, Consolidation, Merger or Sale on Conversion
Privilege. If (1) there shall occur (a) any reclassification of the Company’s Common Stock (other
than a change only in par value, or from par value to no par value or from no par value to par
value, or a change as a result of a subdivision or combination of the Company’s Common Stock); (b)
a consolidation, merger or combination involving the Company; or (c) a sale or conveyance to
another Person of the property and assets of the Company as an entirety or substantially as an
entirety; and (2) pursuant to such reclassification, consolidation, merger, combination, sale or
conveyance, holders of outstanding shares of Common Stock would be entitled to receive stock
(other than Common Stock), other securities, other property, or assets (including Cash) or any
combination thereof for such shares of Common Stock (any such event a “Merger Event”), then the
Company, or such successor or surviving, purchasing or transferee Person, as the case may be,
shall, as a condition precedent to such Merger Event, execute and deliver to the Trustee a
supplemental indenture providing that, at the effective time of the Merger Event, the right to
convert a Security will be changed into a right to convert it into the kind and amount of shares
of stock, other securities or other property or assets (including Cash) or any combination thereof
that a holder of a number of shares of Common Stock equal to the Applicable Conversion Rate
immediately prior to such Merger Event would have owned or been entitled to receive (the
“Reference Property”) upon such transaction (assuming for such purposes that such conversion were
settled entirely in Common Stock and without giving effect to any adjustment to the Base
Conversion Rate with respect to a Fundamental Change) immediately prior to such Merger Event,
except that such Holders will not be entitled to an increase in the Base Conversion Rate if such
Holder does not convert its Securities in connection with the relevant Fundamental Change. For
purposes of this Section 5.10, “in connection with” has the meaning set forth in Section 5.03(a).
If the Merger Event causes the Common Stock to be converted into the right to receive more than a
single type of consideration
(determined based in part upon any form of stockholder election), the Reference Property into
which the Securities will be convertible will be deemed to be the weighted average of the types and
amounts of consideration received by the holders of Common Stock that

40

 

affirmatively make such an
election. None of the foregoing provisions shall affect the right of a Holder of Securities to
convert its Securities in accordance with the provisions of this Article 5 prior to the effective
date of such Merger Event. Such supplemental indenture shall provide for adjustments of the Base
Conversion Rate which shall be as nearly equivalent as may be practicable to the adjustments of the
Base Conversion Rate provided for in this Article 5. The provisions of this Section 5.10 shall
similarly apply to successive Merger Events.

     Section 5.11 Other Adjustments. Subject to applicable stock exchange rules and listing
standards, the Company shall be entitled to increase the Conversion Rate by any amount for a period
of at least 20 Business Days if the Board of Directors determines that such increase would be in
the best interests in the Company, provided the Company has given to Holders at least 15 days’
prior notice, in accordance with Section 12.02, of any such increase in the Base Conversion Rate.
Subject to applicable stock exchange rules and listing standards, the Company shall be entitled to
increase the applicable Base Conversion Rate, in addition to the events requiring an increase in
the Base Conversion Rate pursuant to Section 5.07, as it in its discretion shall determine to be
advisable in order to avoid or diminish any tax to stockholders in connection with any stock
dividends, subdivisions of shares, distributions of rights to purchase stock or securities or
distributions of securities convertible into or exchangeable for stock hereafter made by the
Company to its stockholders or from any event treated as such for tax purposes.

     Section 5.12 Notice of Adjustment. Whenever the Base Conversion Rate or conversion privilege
is adjusted, the Company shall promptly mail to Holders a notice of the adjustment in accordance
with Section 12.02, and file with the Trustee an Officers’ Certificate briefly stating the Base
Conversion Rate, the facts requiring the adjustment and the manner of computing it. Unless and
until the Trustee shall receive an Officers’ Certificate setting forth an adjustment of the Base
Conversion Rate, the Trustee may assume without inquiry that the Base Conversion Rate has not been
adjusted and that the last Base Conversion Rate of which it has knowledge remains in effect.

     Section 5.13 Trustee’s Disclaimer. The Trustee shall have no duty to determine when an
adjustment under this Article 5 should be made, how it should be made or what such adjustment
should be, but may accept as conclusive evidence of that fact or the correctness of any such
adjustment set forth in, and shall be protected in relying upon, an Officers’ Certificate,
including the Officers’ Certificate with respect thereto which the Company is obligated to file
with the Trustee pursuant to Section 5.12. The Trustee makes no representation as to the validity
or value of any securities or assets issued upon conversion of Securities, and the Trustee shall
not be responsible for the Company’s failure to comply with any provisions of this Article 5.

     The Trustee shall not be under any responsibility to determine the correctness of any
provisions contained in any supplemental indenture executed pursuant to Section 5.10, but may
accept as conclusive evidence of the correctness thereof, and shall be fully protected in relying
upon, the Officers’ Certificate and Opinion of Counsel with respect thereto which the Company is
obligated to file with the Trustee pursuant to Section 10.06.

     Section 5.14 Payment Upon Conversion. Subject to certain exceptions set forth in Section
5.03, the Company shall deliver to Holders in respect of each $1,000 principal amount of

41

 

Securities
surrendered for conversion a “Settlement Amount” equal to the sum of the Daily Settlement Amounts
for each of the 20 consecutive Trading Days during the applicable Cash Settlement Averaging Period.

     The “Daily Settlement Amount” for each of the 20 consecutive Trading Days during a Cash
Settlement Averaging Period, shall consist of:

	 	•	 	cash equal to the lesser of $50 and the Daily Conversion Value; and
	 
	 	•	 	to the extent the Daily Conversion Value exceeds $50, a number of shares equal to
(A) the difference between the Daily Conversion Value and $50, divided by (B) the
Closing Sale Price of the Company’s Common Stock for such day.

     The “Daily Conversion Value” means, for each of the 20 consecutive Trading Days during a Cash
Settlement Averaging Period, one-twentieth (1/20) of the product of (1) the Applicable Conversion
Rate on such day and (2) the Closing Sale Price of the Company’s Common Stock on such day.

     The “Cash Settlement Averaging Period” with respect to any Security being converted means the
20 consecutive Trading-Day period beginning on and including the second Trading Day after a
Conversion Notice in respect of such Security is delivered to the Conversion Agent, except that
with respect to any Conversion Notice received during the 30 day period prior to the Maturity Date
or a Redemption Date, as applicable, the Cash Settlement Averaging Period means the 20 consecutive
trading days beginning on and including the 22nd scheduled Trading Day prior to the Maturity Date
or Redemption Date, as the case may be.

     The Company shall deliver the Settlement Amount to Holders who have tendered Securities for
conversion on the third Business Day immediately following the last day of the Cash Settlement
Averaging Period in respect of such Securities; provided that, in the event of a Business
Combination or Make-Whole Fundamental Change, the consideration for which consists entirely of
cash, the Settlement Amount will be determined based solely on the amount of Cash which Holders of
the Company’s Common Stock are entitled to receive in respect of each share of Common Stock upon
such Business Combination. In such event, the Company shall pay the Holders in Cash as promptly as
practicable, but in no event later than the third Business Day after the Securities are surrendered
for conversion and in no event prior to the occurrence of the Business Combination or Make-Whole
Fundamental Change.

     No fractional shares of Common Stock or securities representing fractional shares of Common
Stock will be issued upon conversion. Any fractional interest in a share of Common
Stock resulting from conversion will be paid in Cash based on the average of the Closing Sale
Prices on each day during the relevant Cash Settlement Averaging Period. For purposes of the
foregoing, fractional shares arising from the calculation of the Daily Settlement Amount for any
day in the Cash Settlement Averaging Period shall be aggregated with fractional shares for all
other days in such period in determining the Settlement Amount, and any whole shares resulting
therefrom shall be issued and any remaining fractional shares shall be paid in Cash.

42

 

ARTICLE 6

COVENANTS

     Section 6.01 Payment of Securities. The Company shall promptly make all payments in respect
of the Securities on the dates and in the manner provided in the Securities and this Indenture,
including payments of Cash and shares of Common Stock due upon conversion. The principal amount,
Redemption Price, Repurchase Price, or Fundamental Change Purchase Price and accrued and unpaid
interest, if any, shall be considered paid on the date such amount is due if the Paying Agent holds
by 10:00 a.m., New York City time, on such date, in accordance with this Indenture, Cash
designated and sufficient for the payment of all such amounts then due. The Company shall, to the
fullest extent permitted by law, pay interest on overdue principal and overdue installments of
interest at the rate borne by the Securities per annum.

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

     Each installment of accrued and unpaid interest and Additional Interest, if any, on the
Securities due on any Interest Payment Date may be paid by mailing checks for the amount payable
to or upon the written order of the Holders entitled thereto as they shall appear on the registry
books of the Company, provided that, with respect to any Holder with an aggregate principal amount
in excess of $2,000,000, at the application of such Holder in writing to the Registrar not later
than the relevant Record Date, accrued and unpaid interest and Additional Interest, if any, on such
Holder’s Securities shall be paid by wire transfer in immediately available funds to such Holder’s
account in the United States supplied by such Holder from time to time to the Trustee and Paying
Agent (if different from Trustee); provided further that payment of accrued and unpaid interest and
Additional Interest, if any, made to the Depositary shall be paid by wire transfer in immediately
available funds in accordance with such wire transfer instructions and other procedures provided by
the Depositary from time to time.

     Section 6.02 Reports and Certain Information. (a) The Company shall file with the Trustee,
within 15 days after it is required to file such annual and quarterly reports, information,
documents and other reports with the SEC, copies of its annual report and of the 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; provided that any such reports, information or documents
filed with the SEC pursuant to its Electronic Date Gathering, Analysis and Retrieval (or EDGAR)
system shall be deemed filed
with the Trustee. The Company shall comply with the provisions of TIA Section 314(a), whether
or not the Company is required to file reports with the SEC pursuant to Section 13 or 15(d) of the
Exchange Act. Notwithstanding anything to the contrary herein, the Trustee shall have no duty to
review such documents for purposes of determining compliance with any provisions of this Indenture
or any applicable law.

     (b) Delivery of such reports, documents and information 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).

43

 

     Section 6.03 Compliance Certificates. The Company shall deliver to the Trustee, within 120
days after the end of each fiscal year of the Company ending after the date hereof, an Officers’
Certificate signed by the principal executive officer, principal financial officer or principal
accounting officer of the Company and at least one other Officer of the Company, as to his or her
knowledge of the Company’s compliance with all terms, conditions and covenants under this
Indenture (without regard to any period of grace or requirement of notice provided hereunder) and,
if the Company shall be in default, specifying all such defaults and the nature and status thereof
of which he or she may have knowledge.

     Section 6.04 Maintenance of Corporate Existence. The Company shall do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate existence or,
following any consolidation, merger, conveyance, transfer or lease in accordance with Section 7.01,
its legal existence as a Person permitted to be the resulting, surviving or transferee Person in
accordance with Section 7.01.

     Section 6.05 Stay, Extension and Usury Laws. The Company covenants, to the extent it may
lawfully do so, that it shall not at any time insist upon, plead or in any manner whatsoever claim
or take the benefit or advantage of any stay, extension or usury law or other law which would
prohibit or forgive the Company from paying all or any portion of the principal amount or
Fundamental Change Purchase Price in respect of Securities, or any interest (including Additional
Interest, if any) on the Securities as contemplated herein, wherever enacted, now or at any time
hereafter in force, or which may affect the covenants or the performance of this Indenture, and the
Company, to the extent it may lawfully do so, hereby expressly waives all benefit or advantage of
any such law and covenants that it shall not, by resort to any such law, hinder, delay or impede
the execution of any power herein granted to the Trustee or any Agent, but shall suffer and permit
the execution of every such power as though no such law had been enacted.

     Section 6.06 Maintenance of Office or Agency of the Trustee, Registrar, Paying Agent and
Conversion Agent. The Company shall maintain an office or agency of the Trustee, Registrar, Paying Agent and
Conversion Agent in the United States where Securities may be presented or surrendered for
payment, where Securities may be surrendered for registration of transfer, exchange, purchase or
conversion and where notices and demands to or upon the Company in respect of the Securities and
this Indenture may be served. The Company hereby designates the Corporate Trust Office as one
such office or agency for all of the aforesaid purposes. The Company shall give prompt written
notice to the Trustee of the location, and of any change in the location, of any such office or
agency (other than a change in the location of the Corporate Trust Office of 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 address of the Trustee set forth in Section 12.02.

     Section 6.07 Notice of Default. In the event that any Default or Event of Default shall
occur, the Company shall give prompt (and in any event within thirty (30) days after the Company
becomes aware of such Default or Event of Default) written notice by an Officers’ Certificate of
such Default or Event of Default, and any remedial action proposed to be taken, to the Trustee.

44

 

ARTICLE 7

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

     Section 7.01 Company May Consolidate, etc., Only on Certain Terms. The Company shall not
consolidate with or merge into any other Person or convey, transfer or lease all or substantially
all of the Company’s properties and assets to any successor Person, unless:

     (a) either:

	 	(i)	 	the resulting, surviving or transferee Person
is the Company; or
	 
	 	(ii)	 	the resulting, surviving or transferee Person
is a corporation, limited liability company, partnership or trust
organized and validly existing under the laws of the United States of
America, any State thereof or the District of Columbia and shall
expressly assume, by an indenture supplemental hereto, executed and
delivered to the Trustee, in form reasonably satisfactory to the
Trustee, all of the obligations of the Company under the Securities and
this Indenture;

     (b) immediately after giving effect to such transaction, no Default or Event of Default
shall have occurred and be continuing; and

     (c) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel (upon which the Trustee may conclusively rely), each stating that such
consolidation, merger, conveyance, transfer or lease and, if a supplemental
indenture is required in connection with such transaction, such supplemental indenture
comply with this Article and that all conditions precedent herein provided for relating to
such transaction have been complied with.

     Section 7.02 Successor Substituted. Upon any consolidation of the Company with, or merger of
the Company into, any other Person or any conveyance, transfer or lease of all or substantially
all of the properties and assets of the Company in accordance with Section 7.01, the successor
Person formed by such consolidation or into which the Company is merged or to which such
conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise
every right and power of, the Company under this Indenture with the same effect as if such
successor Person had been named as the Company herein, and thereafter, except in the case of a
lease, the predecessor Person shall be relieved of all obligations and covenants under this
Indenture and the Securities.

ARTICLE 8

DEFAULT AND REMEDIES

     Section 8.01 Events of Default. An “Event of Default” shall occur if:

     (a) the Company defaults in the payment of any principal of any of the Securities when
the same becomes due and payable (whether at maturity, upon redemption, upon exercise of a
repurchase right or otherwise);

45

 

     (b) the Company defaults in the payment of any accrued and unpaid interest (including
Additional Interest, if any) when due and payable, and such default continues for a period
of 30 days;

     (c) the Company fails to deliver the Settlement Amount when such Settlement Amount is
required to be delivered upon conversion of any Securities, and such default continues for 5
days;

     (d) the Company fails to provide the Fundamental Change Company Notice when required by
this Indenture, if such failure continues for 30 days after the Company receives notice of
such failure to do so;

     (e) the Company fails to comply with any of its other agreements contained in the
Securities or in this Indenture (other than a covenant or warranty or default whose
performance or breach is elsewhere in this Section 8.01 specifically provided for) and such
failure continues for 90 days after receipt by the Company of a Notice of Default;

     (f) (i) the Company fails to make any payment by the end of any applicable grace period
after maturity of principal or accrued interest with respect to any obligations (other than
nonrecourse obligations) of the Company for borrowed money or evidenced by bonds, notes or
similar instruments owed to third parties (“Specified Indebtedness”), where the amount of
such due and unpaid principal and/or accrued interest is in an
aggregate amount in excess of $20.0 million, or (ii) the acceleration of principal or
accrued interest with respect to Specified indebtedness, where the amount of such
accelerated principal and interest because of a default with respect to such Specified
Indebtedness is in an amount in excess of $20.0 million, in any such case of (i) or (ii),
without such Specified Indebtedness having been paid or discharged or such acceleration
having been cured, waived, rescinded or annulled within a period of 30 days after receipt by
the Company of a Notice of Default. However, if any such failure or acceleration referred
to in (i) or (ii) of this clause (f) shall cease or be cured, waived, rescinded or annulled,
then the event of default by reason thereof shall be deemed not to have occurred and any
acceleration as a result of the related event of default shall be automatically rescinded;

     (g) the Company, or any Significant Subsidiary pursuant to or within the meaning of any
Bankruptcy Law: commences a voluntary case or proceeding; consents to the entry of an order
for relief against it in an involuntary case or proceeding or the commencement of any case
against it; consents to the appointment of a Custodian of it or for any substantial part of
its property; or makes a general assignment for the benefit of its creditors; or

     (h) a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that: is for relief against the Company or a Significant Subsidiary in an involuntary
case or proceeding; appoints a Custodian of the Company or a Significant Subsidiary for any
substantial part of the property of the Company or such Significant Subsidiary; or orders
the winding up or liquidation of the Company or a Significant

46

 

 Subsidiary; and in each case
of this subclause (h) the order or decree remains unstayed and in effect for 60 consecutive
days.

        The term “Bankruptcy Law” means Title 11 of the United States Code (or any successor thereto)
or any similar federal or state law for the relief of debtors. The term “Custodian” means any
receiver, trustee, assignee, liquidator, sequestrator or similar official under any Bankruptcy Law.

     Notwithstanding the foregoing, to the extent the Company so elects, the sole remedy for an
Event of Default relating to the Company’s failure to comply with its obligations as pursuant to
Section 6.02 or for any failure to comply with the requirements of Section 314(a)(1) of the Trust
Indenture Act shall for the first 90 days after the occurrence of such an Event of Default consist
exclusively of the right to receive additional interest (the “Additional Interest”) on the
Securities at an annual rate equal to 0.50% of the principal amount of the Securities.

        The Additional Interest will accrue on all outstanding Securities from and including the date
on which an Event of Default under Section 8.01(e) relating to a failure to comply with Section
6.02 first occurs, to but not including the 90th day thereafter (or such earlier date on which the
Event of Default under Section 8.01(e) relating to the reporting obligations shall have been cured
or waived). On such 90th day (or earlier, if the Event of Default relating to the reporting
obligations is cured or waived prior to such 90th day), the Additional Interest shall cease to
accrue and, if the Event of Default under Section 8.01(e) relating to reporting obligations has not
been cured or waived prior to such 90th day, the Securities shall be subject to
acceleration as pursuant to Section 8.02. These provisions will not affect the rights of
Holders of Securities in the event of the occurrence of any other Event of Default. In the event
that the Company does not elect to pay the Additional Interest upon an Event of Default relating to
reporting obligations, the Securities shall be subject to acceleration as provided below.

        A Default under clause (e) or (f) above is not an Event of Default until the Trustee notifies
the Company, or the Holders of at least 25% in aggregate principal amount of the Securities then
outstanding notify the Company and the Trustee, in writing of the Default, and the Company does not
cure the Default (and such Default is not waived) within the time period specified in clauses (e)
or (f) above, as applicable, after actual receipt of such notice. The notice given pursuant to
this Section 8.01 must specify the Default, demand that it be remedied and state that the notice is
a “Notice of Default.” When any Default under this Section 8.01 is cured in accordance herewith,
it shall cease to be a Default.

        The Trustee shall not be charged with knowledge of any Event of Default unless written notice
thereof shall have been given to a Trust Officer at the Corporate Trust Office of the Trustee by
the Company (including, without limitation, pursuant to Section 6.03), a Paying Agent, any Holder
or any agent of any Holder, which notice references the Securities and this Indenture.

        Section 8.02 Acceleration. If an Event of Default (other than an Event of Default with
respect to the Company specified in clauses (g) or (h) of Section 8.01) occurs and is continuing,
the Trustee may, by notice to the Company, or the Holders of at least 25% in aggregate principal
amount of the Securities then outstanding may, by notice to the Company and the Trustee,

47

 

declare
all unpaid principal of, plus interest accrued and unpaid through the date of such declaration on,
all the Securities then outstanding to be due and payable upon any such declaration, and the same
shall thereupon become and be immediately due and payable.

     If an Event of Default with respect to the Company specified in clause (g) or (h) of Section
8.01 occurs, all unpaid principal of, plus interest accrued and unpaid through the date of such
default on, all the Securities then outstanding shall become and be immediately due and payable
without any declaration or other act on the part of the Trustee or any Holder.

     The Holders of a majority in aggregate principal amount of the Securities then outstanding or
the Holders originally causing the acceleration by notice to the Trustee may rescind an
acceleration of Securities and its consequences before a judgment or decree for the payment of
money has been obtained by the Trustee if (a) the rescission would not conflict with any existing
order or decree, (b) all existing Events of Default, other than the nonpayment of the principal of,
plus accrued and unpaid interest on, the Securities that has become due solely by such declaration
of acceleration, have been cured or waived and (c) all payments due to the Trustee and any
predecessor Trustee under Section 9.06 have been made. No such rescission shall affect any
subsequent Default or impair any right consequent thereto.

     Section 8.03 Other Remedies. If an Event of Default occurs and is continuing, the Trustee may, but shall not be
obligated to, pursue any available remedy by proceeding at law or in equity to collect the payment
of the principal of or accrued and unpaid interest on the Securities, the payment of Cash and, if
applicable, shares of Common Stock upon conversion or to enforce the performance of any provision
of the Securities or this Indenture.

     The Trustee may maintain a proceeding even if it does not possess any of the Securities or
does not produce any of them in the proceeding. A delay or omission by the Trustee or any
Securityholder 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 to the extent permitted by
law.

     Section 8.04 Waiver of Defaults and Events of Default. Subject to Section 8.07 and 10.02, the
Holders of a majority in aggregate principal amount of the Securities then outstanding by notice to
the Trustee may waive an existing or future Default or Event of Default and its consequences,
except an uncured Default or Event of Default in the payment of the principal of, or any interest,
if any, on any Security, or the payment of any applicable Redemption Price, Repurchase Price, or
Fundamental Change Purchase Price, or an uncured failure by the Company to deliver Cash or shares
of Common Stock (and Cash in lieu of any fractional shares) upon conversion in accordance with
Article 5 or any uncured Default or Event of Default in respect of any provision of this Indenture
or the Securities that, under Section 10.02, cannot be modified or amended without the consent of
the Holders of each outstanding Security. When a Default or Event of Default is waived, it is
deemed cured, but no such waiver shall extend to any subsequent or other Default or impair any
consequent right. This Section 8.04 shall be in lieu of Section 316(a)(1)(B) of the TIA and such
Section 316(a)(1)(B) is hereby expressly excluded from this Indenture, as permitted by the TIA.

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     Section 8.05 Control by Majority. The Holders of a majority in aggregate principal amount of
the Securities then outstanding may direct the time, method and place of conducting any proceeding
for any remedy available to the Trustee or exercising any trust or power conferred on it under this
Indenture. However, the Trustee may refuse to follow any direction that conflicts with law or this
Indenture, that the Trustee determines may be unduly prejudicial to the rights of another Holder or
the Trustee, or that may involve the Trustee in personal liability unless the Trustee is offered
security or indemnity reasonably satisfactory to it; provided that the Trustee may take any other
action deemed proper by the Trustee which is not inconsistent with such direction. This Section
8.05 shall be in lieu of Section 316(a)(1)(A) of the TIA and such Section 316(a)(1)(A) is hereby
expressly excluded from this Indenture, as permitted by the TIA.

     Section 8.06 Limitations on Suits. Subject to Section 8.07, a Holder of a Security may not
pursue any remedy with respect to this Indenture or the Securities unless:

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

     (b) the Holders of at least 25% in aggregate principal amount of the then outstanding
Securities make a written request to the Trustee to pursue the remedy;

     (c) such Holder or Holders offer to the Trustee security or indemnity reasonably
satisfactory to the Trustee against any loss, liability or expense;

     (d) the Trustee does not comply with the request within 60 days after receipt of the
notice, request and the offer of security or indemnity; and

     (e) no direction inconsistent with such written request has been given to the Trustee
during such 60-day period by the Holders of a majority in aggregate principal amount of the
Securities then outstanding.

     A Securityholder may not use this Indenture to prejudice the rights of another Securityholder
or to obtain a preference or priority over such other Securityholder.

     Section 8.07 Rights of Holders to Receive Payment and to Convert. Notwithstanding any other
provision of this Indenture, the right of any Holder of a Security to receive payment in Cash of
the principal amount, Redemption Price, Repurchase Price, Fundamental Change Purchase Price or
interest on any Security, on or after the respective due dates expressed in the Security and this
Indenture, receive Cash, shares of Common Stock (and Cash in lieu of fractional shares) upon
conversion in accordance with Article 5 and to bring suit for the enforcement of any such payment
on or after such respective dates or the right to convert, is absolute and unconditional and shall
not be impaired or affected without the consent of the Holder.

     Section 8.08 Collection Suit by Trustee. If an Event of Default in the payment of principal
or interest or Additional Interest specified in clause (a) or (b) of Section 8.01 occurs and is
continuing, the Trustee may recover judgment in its own name and as trustee of an express trust
against the Company or another obligor on the Securities for the whole amount owing with respect to
the Securities and the amounts provided for in Section 9.06.

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     Section 8.09 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 (including any claim for the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel) and the Holders allowed in any judicial proceedings
relative to the Company (or any other obligor on the Securities), its creditors or its property and
shall be entitled and empowered to collect and receive any money or other property payable or
deliverable on any such claims and to distribute the same, and any Custodian in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the
event that the Trustee shall consent
to the making of such payments directly to the Holders, to pay to the Trustee any amount due
to it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its
agents and counsel, and any other amounts due the Trustee under Section 9.06, and to the extent
that such payment of the reasonable compensation, expenses, disbursements and advances in any such
proceedings shall be denied for any reason, payment of the same shall be secured by a lien on, and
shall be paid out of, any and all distributions, dividends, money, securities and other property
which the Holders may be entitled to receive in such proceedings, whether in liquidation or under
any plan of reorganization or arrangement or otherwise. Nothing herein contained shall be deemed
to authorize the Trustee to authorize or consent to or, on behalf of any Holder, to authorize,
accept or adopt any plan of reorganization, arrangement, adjustment or composition affecting the
Securities or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of
the claim of any Holder in any such proceeding.

     Section 8.10 Priorities. Any money or property collected by the Trustee pursuant to this
Article 8, and after an Event of Default, any money or other property distributable in respect of
the Company’s obligations under this Indenture shall be paid out in the following order:

     First, to the Trustee (including any predecessor Trustee) for amounts due under Section 9.06;

     Second, to Securityholders for amounts due and unpaid on the Securities for the principal
amount, interest, the Redemption Price, the Repurchase Price, the Fundamental Change Purchase
Price, and amounts due upon conversion (including amounts resulting from a Fundamental Change), as
the case may be, ratably, without preference or priority of any kind, according to such amounts due
and payable on the Securities; and

     Third, the balance, if any, to the Company.

     The Trustee may fix a record date and payment date for any payment to Holders pursuant to this
Section 8.10. At least 15 days before such record date, the Trustee shall mail to each Holder and
the Company a notice that states the record date, the payment date and the amount to be paid.

     Section 8.11 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 and expenses, against any party litigant in the suit,

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having due regard to the merits and good faith of the claims or defenses made by the party
litigant. This Section 8.11 does not apply to a suit made by the Trustee, a suit by a Holder
pursuant to Section 8.07, or a suit by Holders of more than 10% in aggregate principal amount of
the Securities then outstanding.

     Section 8.12 Delay or Omission Not Waiver. No delay or omission of the Trustee or of any Holder of any Security to exercise any right
or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a
waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by
this Article 8 or by law to the Trustee or to the Holders may be exercised from time to time, and
as often as may be deemed expedient, by the Trustee or by the Holders, as the case may be.

ARTICLE 9

TRUSTEE

     Section 9.01 Certain Duties and Responsibilities of Trustee. (a) In case an Event of Default
with respect to the Securities has occurred (that has not been cured or waived), the Trustee shall
exercise with respect to the Securities such of the rights and powers vested in it by this
Indenture, and use the same degree of care and skill in their exercise, as a prudent person would
exercise or use under the circumstances in the conduct of his or her own affairs.

     (b) Prior to the occurrence of an Event of Default with respect to the Securities and
after the curing or waiving of all such Events of Default with respect to the Securities
that may have occurred:

	 	(i)	 	the duties and obligations of the Trustee shall
with respect to the Securities be determined solely by the express
provisions of this Indenture, and the Trustee shall not be liable with
respect to the Securities except for the performance of such duties and
obligations as are specifically set forth in this Indenture, and no
implied covenants or obligations shall be read into this Indenture
against the Trustee; and
	 
	 	(ii)	 	in the absence of bad faith on the part of the
Trustee, the Trustee may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon
any certificates or opinions furnished to the Trustee and conforming to
the requirements of this Indenture; but in the case of any such
certificates or opinions that by any provision hereof are specifically
required to be furnished to the Trustee, the Trustee shall be under a
duty to examine the same to determine whether or not they conform on
their face to the requirements of this Indenture (but need not confirm
or investigate the accuracy of any mathematical calculations or other
facts stated therein).

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     (c) No provision of this Indenture shall be construed to relieve the Trustee from
liability for its own negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

	 	(i)	 	this subsection shall not be construed to limit
the effect of Section 9.01(b);
	 
	 	(ii)	 	the Trustee shall not be liable for any error
of judgment made in good faith by a Trust Officer or Trust Officers,
unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts;
	 
	 	(iii)	 	the Trustee shall not be liable with respect
to any action taken or omitted to be taken by it in good faith in
accordance with the direction of the Holders of not less than a
majority in principal amount of the Securities at the time Outstanding
(determined as provided in Section 2.08) relating to the time, method
and place of conducting any proceeding for any remedy available to the
Trustee, or exercising any trust or power conferred upon the Trustee
under this Indenture with respect to the Securities; and
	 
	 	(iv)	 	none of the provisions contained in this
Indenture shall require the Trustee to expend or risk its own funds or
otherwise incur personal financial liability in the performance of any
of its duties or in the exercise of any of its rights or powers, if
there is reasonable ground for believing that the repayment of such
funds or liability is not reasonably assured to it under the terms of
this Indenture or adequate indemnity against such risk is not
reasonably assured to it.

     (d) Whether or not expressly so provided, every provision of this Indenture relating to
the conduct or affecting the liability or affording protection to the Trustee (in any
capacity, including Paying Agent, Registrar or Conversion Agent) shall be subject to the
provisions of this Section.

     Section 9.02 Certain Rights of Trustee. Except as otherwise provided in Section 9.01:

     (a) The Trustee may conclusively rely and shall be fully protected in acting or
refraining from acting upon any resolution, certificate, statement, instrument, opinion,
report, notice, request, consent, order, approval, bond, security or other paper or document
(whether in original or facsimile form) believed by it in good faith to be genuine and to
have been signed or presented by the proper party or parties. The Trustee need not
investigate any fact or matter stated in any such document;

     (b) Any request, direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by a resolution of the Company’s Board of Directors or an instrument
signed in the name of the Company, by one or more Officers thereof (unless other evidence in
respect thereof is specifically prescribed herein);

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

     (d) 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
Securityholders, pursuant to the provisions of this Indenture, unless such Securityholders
shall have offered to the Trustee security or indemnity reasonably satisfactory to it
against the costs, expenses and liabilities that may be incurred therein or thereby;

     (e) The Trustee shall not be liable for any action taken or omitted to be taken by it
in good faith and believed by it to be authorized or within the discretion or rights or
powers conferred upon it by this Indenture;

     (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, security, or other papers or documents, but the
Trustee, in its discretion, may make even further inquiry or investigation into such facts
or matters as it may see fit; and, if the Trustee shall determine to make such further
inquiry or investigation, it shall be entitled to examine the books, records and premises of
the Company, personally or by agent or attorney at the sole cost of the Company and shall
incur no liability or additional liability of any kind by reason of such inquiry or
investigation;

     (g) The Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys and the Trustee shall not be
responsible for any misconduct or negligence on the part of any agent or attorney appointed
with due care by it hereunder;

     (h) The Trustee shall not be deemed to have knowledge or be charged with knowledge of
an Event of Default except (i) if the Trustee is acting as Paying Agent, any Default or
Event of Default occurring pursuant to Sections 6.01, 8.01(a) or 8.01(b) and (ii) any
Default or Event of Default of which the Trustee shall have received written notification
which references the Securities and this Indenture or of which a Trust Officer shall have
obtained actual knowledge. Delivery of reports, information and documents to the Trustee
under Section 6.02 is for informational purposes only and the Trustee’s receipt of the
foregoing 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, except as otherwise provided herein);

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     (i) The rights, privileges, protections, immunities and benefits given to the Trustee
pursuant hereto, including, without limitation, its right to be indemnified, are extended
to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each
agent, custodian and other person employed by the Trustee to act hereunder;

     (j) The permissive right of the Trustee to take or refrain from taking any actions
enumerated in this Indenture shall not be construed as a duty;

     (k) 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;

     (l) Anything in this Indenture notwithstanding, in no event shall the Trustee be liable
for special, indirect, punitive or consequential loss or damage of any kind whatsoever
(including but not limited to loss of profit), even if the Trustee has been advised as to
the likelihood of such loss or damage and regardless of the form of action; and

     (m) The Trustee shall not be responsible or liable for any failure or delay in the
performance of its obligations under this Indenture arising out of or caused, directly or
indirectly, by circumstances beyond its reasonable control, including, without limitation,
acts of God; earthquakes; fire; flood; terrorism; wars and other military disturbances;
sabotage; epidemics; riots; interruptions; loss or malfunctions of utilities, computer
(hardware or software) or communication services; accidents; labor disputes; acts of civil
or military authority and governmental action.

     Section 9.03 Trustee Not Responsible for Recitals or Issuance or Securities. (a) The recitals
contained herein and in the Securities shall be taken as the statements of the Company, and the
Trustee assumes no responsibility for the correctness of the same.

     (b) The Trustee makes no representations as to the validity or sufficiency of this
Indenture or of the Securities.

     (c) The Trustee or any Authorized Agent shall not be accountable for the use or
application by the Company of any of the Securities or of the proceeds of such Securities,
or for the use or application of any moneys paid over by the Trustee in accordance with any
provision of this Indenture or established pursuant to Section 2.01, or for the use or
application of any moneys received by any Paying Agent other than the Trustee.

     Section 9.04 May Hold Securities. The Trustee or any Paying Agent or Registrar, in its
individual or any other capacity, may become the owner or pledgee of Securities and may otherwise
deal with the Company with the same rights it would have if it were not Trustee, Paying Agent or
Registrar.

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     Section 9.05 Moneys Held in Trust. Subject to the provisions of Section 8.05, all moneys
received by the Trustee shall, until used or applied as herein provided, be held in trust for the
purposes for which they were
received, but need not be segregated from other funds except to the extent required by law.
The Trustee shall be under no liability for interest on any moneys received by it hereunder except
such as it may agree in writing with the Company to pay thereon.

     Section 9.06 Compensation and Reimbursement. (a) The Company covenants and agrees to pay to
the Trustee, and the Trustee shall be entitled to, such compensation (which shall not be limited by
any provision of law in regard to the compensation of a trustee of an express trust), as the
Company and the Trustee may from time to time agree in writing for all services rendered by it in
the execution of the trusts hereby created and in the exercise and performance of any of the powers
and duties hereunder of the Trustee, and, except as otherwise expressly provided herein, the
Company shall pay or reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Trustee in accordance with any of the provisions
of this Indenture (including the reasonable compensation and the expenses and disbursements of its
counsel and of all Persons not regularly in its employ) except any such expense, disbursement or
advance as may arise from the Trustee’s gross negligence, bad faith or willful misconduct. The
Company covenants and agrees to indemnify the Trustee (and its officers, agents, directors,
stockholders and employees) for, and to hold it harmless against, any loss, liability or expense
(including, without limitation, reasonable attorney’s fees and expenses) incurred without gross
negligence or bad faith or willful misconduct on the part of the Trustee and arising out of or in
connection with the acceptance or administration of this trust, including the reasonable costs and
expenses of defending itself against any claim of liability in the premises.

     (b) The obligations of the Company under this Section to compensate and indemnify the
Trustee and to pay or reimburse the Trustee for reasonable expenses, disbursements and
advances shall constitute additional indebtedness hereunder. Such additional indebtedness
shall be secured by a lien prior to that of the Securities upon all property and funds held
or collected by the Trustee as such, except funds held in trust for the benefit of the
Holders.

     (c) When the Trustee incurs expenses or renders services after an Event of Default
specified in Section 8.01(g) or (h) occurs, the expenses and the compensation for the
services are intended to constitute expenses of administration under any Bankruptcy Law.

     (d) For the purposes of this Section 9.06, the “Trustee” shall include any predecessor
Trustee and the Trustee in any capacity, including Paying Agent, Registrar or Conversion
Agent; provided, however, that the gross negligence, bad faith or willful misconduct of any
Trustee or other indemnified party hereunder shall not affect the rights of any other
Trustee hereunder.

     (e) The provisions of this Section shall survive the discharge of this Indenture and
resignation or removal of the Trustee.

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     Section 9.07 Reliance on Officers’ Certificate. Except as otherwise provided in Section 9.01, whenever in the administration of the
provisions of this Indenture the Trustee shall deem it necessary or desirable that a matter be
proved or established prior to taking or suffering or omitting to take any action hereunder, such
matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the
absence of bad faith on the part of the Trustee, be deemed to be conclusively proved and
established by an Officers’ Certificate or Opinion of Counsel delivered to the Trustee and such
certificate, in the absence of bad faith on the part of the Trustee, shall be full warrant to the
Trustee for any action taken, suffered or omitted to be taken by it under the provisions of this
Indenture upon the faith thereof.

     Section 9.08 Disqualification: Conflicting Interests. If the Trustee has or shall acquire
any “conflicting interest” within the meaning of Section 310(b) of the TIA, the Trustee and the
Company shall in all respects comply with the provisions of Section 310(b) of the TIA.

     Section 9.09 Corporate Trustee Required; Eligibility. There shall at all times be a Trustee
with respect to the Securities issued hereunder which shall at all times be a corporation organized
and doing business under the laws of the United States of America or any State or Territory thereof
or of the District of Columbia, or a corporation or other Person permitted to act as trustee by the
SEC, authorized under such laws to exercise corporate trust powers, having a combined capital and
surplus, or being a member of a bank holding company with a combined capital and surplus, of at
least 50 million U.S. dollars ($50,000,000), and subject to supervision or examination by Federal,
State, Territorial or District of Columbia authority. If such corporation publishes reports of
condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or
examining authority, then for the purposes of this Section, the combined capital and surplus of
such corporation shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. The Company may not, nor may any Person directly or
indirectly controlling, controlled by, or under common control with the Company, serve as Trustee.
In case at any time the Trustee shall cease to be eligible in accordance with the provisions of
this Section, the Trustee shall resign immediately in the manner and with the effect specified in
Section 9.10.

     Section 9.10 Resignation and Removal; Appointment of Successor. (a) The Trustee or any
successor hereafter appointed may at any time resign as Trustee with respect to the Securities by
giving written notice thereof to the Company and by transmitting notice of resignation by mail,
first class postage prepaid, to the Securityholders, as their names and addresses appear upon the
Register. Upon receiving such notice of resignation, the Company shall promptly appoint a
successor trustee with respect to the Securities by or pursuant to a resolution of the Board of
Directors. If no successor trustee shall have been so appointed and have accepted appointment
within 30 days after the mailing of such notice of resignation, the resigning Trustee may petition
any court of competent jurisdiction for the appointment of a successor trustee with respect to the
Securities, or any Securityholder who has been a bona fide holder of a Security or Securities for
at least six months may on behalf of himself and all others similarly situated, petition any such
court for the appointment of a
successor trustee, in either case at the sole cost and expense of the Company. Such court may
thereupon after such notice, if any, as it may deem proper and prescribe, appoint a successor
trustee.

     (b) In case at any time any one of the following shall occur:

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	 	(i)	 	the Trustee shall fail to comply with the
provisions of Section 9.08 after written request therefor by the
Company or by any Securityholder who has been a bona fide holder of a
Security or Securities for at least six months;
	 
	 	(ii)	 	the Trustee shall cease to be eligible in
accordance with the provisions of Section 9.09 and shall fail to resign
after written request therefor by the Company or by any such
Securityholder; or
	 
	 	(iii)	 	the Trustee shall become incapable of acting,
or shall be adjudged a bankrupt or insolvent, or commence a voluntary
bankruptcy proceeding, or a receiver of the Trustee or of its property
shall be appointed or consented to, or any public officer shall take
charge or control of the Trustee or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation;

then, in any such case, the Company may remove the Trustee with respect to all Securities and
appoint a successor trustee by or pursuant to a resolution of the Board of Directors, or, unless
the Trustee’s duty to resign is stayed, subject to Section 9.11, any Securityholder who has been a
bona fide holder of a Security or Securities for at least six months may, on behalf of that Holder
and all others similarly situated, petition any court of competent jurisdiction for the removal of
the Trustee and the appointment of a successor trustee. Such court may thereupon after such
notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a successor
trustee.

     (c) The Holders of a majority in aggregate principal amount of the Securities at the
time outstanding may at any time remove the Trustee by so notifying the Trustee and the
Company and may appoint a successor Trustee with the consent of the Company. If no
successor trustee shall have been so appointed and have accepted appointment within 30 days
after such notification of removal by the Holders, the Trustee to be removed may petition
any court of competent jurisdiction for the appointment of a successor trustee with respect
to the Securities, or any Securityholder who has been a bona fide holder of a Security or
Securities for at least six months may on behalf of himself and all others similarly
situated, petition any such court for the appointment of a successor trustee, in either case
at the sole cost and expense of the Company. Such court may, as it may deem proper
prescribe or appoint a successor trustee.

     (d) Notwithstanding anything herein to the contrary, any resignation or removal of the
Trustee and appointment of a successor trustee with respect to the Securities pursuant to
any of the provisions of this Section shall become effective upon acceptance of appointment
by the successor trustee as provided in Section 9.11.

     (e) So long as no event which is, or after notice or lapse of time, or both, would
become, an Event of Default shall have occurred and be continuing, and except with respect
to a Trustee appointed by the Holders of a majority in principal amount of the Securities at
that time outstanding pursuant to Subsection (c) of this Section, if the Company shall have
delivered to the Trustee (i) a resolution of the Board of Directors

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appointing a successor
Trustee, effective as of a date specified therein, and (ii) an instrument of acceptance of
such appointment, effective as of such date, by such successor Trustee in accordance with
Section 9.11, the Trustee shall be deemed to have resigned as contemplated in subsection (a)
of this Section, the successor Trustee shall be deemed to have been appointed by the Company
pursuant to subsection (a) of this Section and such appointment shall be deemed to have been
accepted as contemplated in Section 9.11, all as of such date, and all other provisions of
this Section and Section 9.11 shall be applicable to such resignation, appointment and
acceptance except to the extent inconsistent with this subsection (e).

     (f) At any time there shall be only one Trustee with respect to the Securities.

     Section 9.11 Acceptance of Appointment By Successor. (a) In case of the appointment hereunder
of a successor trustee with respect to the Securities, every such successor trustee so appointed
shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument
accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall
become effective and such successor trustee, without any further act, deed or conveyance, shall
become vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on the
request of the Company or the successor trustee, such retiring Trustee shall, upon payment of its
charges and all other amounts payable to it hereunder, execute and deliver an instrument
transferring to such successor trustee all the rights, powers, and trusts of the retiring Trustee
and shall duly assign, transfer and deliver to such successor trustee all property and money held
by such retiring Trustee hereunder, subject to the lien provided for in Section 9.06(b).

     (b) Upon request of any such successor trustee, the Company shall execute any and all
instruments for more fully and certainly vesting in and confirming to such successor trustee
all such rights, powers and trusts referred to in paragraph (a) of this Section.

     (c) No successor trustee shall accept its appointment unless at the time of such
acceptance such successor trustee shall be qualified and eligible under this Article 9.

     (d) Upon acceptance of appointment by a successor trustee as provided in this Section,
the Company shall transmit notice of the succession of such trustee hereunder by mail, first
class postage prepaid, to the Securityholders, as their names and addresses appear upon the
Register. If the Company fails to transmit such notice within ten days after acceptance of
appointment by the successor trustee, the successor trustee shall cause such notice to be
transmitted at the expense of the Company.

     Section 9.12 Merger, Conversion, Consolidation or Succession to Business. Any corporation or other business entity into which the Trustee may be merged or converted
or with which it may be consolidated, or any corporation or other business entity resulting from
any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation
or other business entity succeeding to the corporate trust business of the Trustee, shall be the
successor of the Trustee hereunder, provided that such corporation or other business entity shall
be qualified under the provisions of Section 9.08 and eligible under the provisions of Section

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9.09, without the execution or filing of any paper or any further act on the part of any of the
parties hereto, anything herein to the contrary notwithstanding. In case any Securities shall have
been authenticated, but not delivered, by the Trustee then in office, any successor by merger,
conversion or consolidation to such authenticating Trustee may adopt such authentication and
deliver the Securities so authenticated with the same effect as if such successor Trustee had
itself authenticated such Securities.

     Section 9.13 Preferential Collection of Claims Against the Company. The Trustee shall comply
with Section 311(a) of the TIA, excluding any creditor relationship described in Section 311(b) of
the TIA. A Trustee who has resigned or been removed shall be subject to Section 311(a) of the TIA
to the extent included therein.

     Section 9.14 Notice of Defaults. If a Default or Event of Default occurs and is continuing
hereunder and if it is actually known to a Trust Officer of the Trustee, the Trustee shall mail to
each Holder notice of the Default or Event of Default within 90 days after such Default or Event of
Default. Except in the case of a default in payment of principal of or interest on any Security,
the Trustee may withhold the notice if and so long as a committee of its Trust Officers in good
faith determines that withholding the notice is not opposed to the interest of the Holders of such
Securities.

     Section 9.15 Reports by Trustee. (a) Within sixty (60) days after December 31 of each year
commencing with the year 2008, the Trustee shall transmit to Securityholders such reports dated as
of December 31 of the year in which such report is made concerning the Trustee and its actions
under this Indenture as may be required pursuant to the TIA, including, without limitation, Section
313(a) thereof, at the times and in the manner provided pursuant thereto. In the event that, on
any such reporting date, no events have occurred under the applicable sections of the TIA within
the 12 months preceding such reporting date, the Trustee shall be under no duty or obligation to
provide such reports. The Trustee shall also comply with TIA Section 313(b)(2). The Trustee shall
transmit by mail all reports as required by TIA Section 313(c).

     (b) A copy of each such report shall, at the time of such transmission to
Securityholders, be delivered to the Company and filed by the Trustee with each stock
exchange upon which the Securities are listed and with the SEC in accordance with TIA
Section 313(d). The Company shall notify the Trustee when the Securities are listed on any
stock exchange and of any delisting thereof.

ARTICLE 10

AMENDMENTS, SUPPLEMENTS AND WAIVERS

     Section 10.01 Without Consent of Holders. The Company and the Trustee may amend or supplement
this Indenture or the Securities without notice to, or consent of, any Securityholder:

     (a) to cure any ambiguity, omission, defect or inconsistency, to correct or supplement
any provision herein which may be inconsistent with any other provision herein;

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     (b) to provide for uncertificated Securities in addition to or in place of Certificated
Securities;

     (c) to provide for the assumption of the Company’s obligations to Holders of Securities
and the adjustment of conversion rights in the case of a share exchange, merger or
consolidation or sale of all or substantially all of the Company’s assets;

     (d) to make any change that would provide any additional rights or benefits to the
Holders of Securities or that does not adversely affect in any material respect the legal
rights under this Indenture of any Securityholder;

     (e) to add a guarantor;

     (f) to comply with requirements of the SEC in order to effect or maintain the
qualification of this Indenture under the TIA;

     (g) to secure the Securities;

     (h) to comply with the rules of any applicable securities depositary, including the
Depositary;

     (i) to increase the Base Conversion Rate;

     (j) to execute a supplemental indenture in accordance with Section 5.10;

     (k) to conform the text of this Indenture or the Securities to any provision of the
“Description of the Notes” contained in the Prospectus to the extent that the text of the
“Description of the Notes” was intended by the Company and the Underwriters to be a
recitation of the text of this Indenture or the Securities as represented by the Company to
the trustee in an Officers’ Certificate;

     (l) to provide for a successor Trustee in accordance with the terms of this Indenture
or to otherwise comply with any requirement of this Indenture;

     (m) to add to the covenants listed in Article 6 for the benefit of the Holders or
surrender any right or power conferred upon the Company;

     (n) to provide for the issuance of Additional Securities, to the extent that the
Company and the Trustee deem such amendment or supplement necessary or advisable in
connection with such issuance; provided that no such amendment or supplement shall impair
the rights or interests of any Holder of Initial Securities; or

     (o) to modify the restrictions and procedures for resale and other transfers of
Securities or Common Stock pursuant to law, regulation or practice relating to the resale or
transfer of restricted securities generally.

     Section 10.02 With Consent of Holders. The Company and the Trustee may amend or supplement
the Securities or this Indenture with the consent of the Holders of at least a majority

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in aggregate principal amount of the Securities then outstanding. Subject to Section 8.04 and Section
8.07, the Holders of at least a majority in aggregate principal amount of the Securities then
outstanding may, without notice to the Holders of Securities, waive compliance in any instance by
the Company with any provision of the Securities or this Indenture or waive any past default under
this Indenture and its consequences, except an uncured default in the payment of any amount due, or
in the obligation to deliver Common Stock, with respect to any Security or in respect of any
provision which under this Indenture cannot be modified or amended without the consent of the
Holder of each Security affected. However, notwithstanding the foregoing but subject to Section
10.04, without the consent of each affected Holder of each Security then outstanding, an amendment,
supplement or waiver may not:

     (a) change the stated maturity of the principal of or the payment date of any
installment of interest on or with respect to the Securities;

     (b) reduce the principal amount of, the Redemption Price, the Repurchase Price, the
Fundamental Change Purchase Price, or the Conversion Rate (except as provided in this
Indenture) of any Security or the rate of interest on any Security;

     (c) reduce the amount of principal payable upon acceleration of the maturity of any
Security;

     (d) change the currency in which payment of principal of, the Redemption Price, the
Repurchase Price, the Fundamental Change Purchase Price of, or interest with respect to, the
Securities is payable;

     (e) impair the right to institute suit for the enforcement of any payment on, or with
respect to, any Security;

     (f) modify the provisions with respect to the repurchase rights of Holders or
redemption rights of the Company as provided in Article 3 in a manner adverse to Holders;

     (g) adversely affect the right of Holders to convert Securities in any material
respect, other than as provided in this Indenture;

     (h) reduce the percentage in principal amount of the outstanding Securities, the
consent of whose Holders is required to take specific actions including, but not limited to,
the waiver of past defaults or the modification or amendment of this Indenture; or

     (i) alter the manner of calculation or rate of accrual of interest or Fundamental
Change Purchase Price or the Base Conversion Rate, Incremental Share Factor and Applicable
Conversion Rate (except as permitted under Section 10.01(i)) on any Security or extend the
time for payment of any such amount.

     It shall not be necessary for the consent of the Holders under this Section 10.02 to approve
the particular form of any proposed amendment, supplement or waiver, but it shall be sufficient if
such consent approves the substance thereof.

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     After an amendment, supplement or waiver under Section 10.01 or this Section 10.02 becomes
effective, the Company shall mail to the Holders affected thereby a notice briefly describing the
amendment, supplement or waiver. Any failure of the Company to mail such notice, or any defect
therein, shall not, however, in any way impair or affect the validity of any such amendment,
supplement or waiver.

     Section 10.03 Compliance with Trust Indenture Act. Every amendment to or supplement of this
Indenture or the Securities shall comply with the TIA as in effect at the date of such amendment or
supplement.

     Section 10.04 Revocation and Effect of Consents. Until an amendment, supplement or waiver
becomes effective, a consent to it by a Holder is a continuing consent by the Holder and every
subsequent Holder of a Security or portion of a Security that evidences the same debt as the
consenting Holder’s Security, even if notation of the consent is not made on any Security.
However, any such Holder or subsequent Holder may revoke the consent as to its Security or portion
of a Security if the Trustee receives the notice of revocation before the date the amendment,
supplement or waiver becomes effective. After an amendment, supplement or waiver becomes
effective, it shall bind every applicable Securityholder.

     Section 10.05 Notation on or Exchange of Securities. If an amendment, supplement or waiver
changes the terms of a Security, the Trustee may require the Holder of the Security to deliver it
to the Trustee. The Trustee may place an appropriate notation on the Security about the changed
terms and return it to the Holder. Alternatively, if the Company or the Trustee so determines, the
Company in exchange for the Security shall issue and the Trustee shall authenticate a new Security
that reflects the changed terms.

     Section 10.06 Trustee to Sign Amendments, Etc. The Trustee shall sign any amendment or supplemental indenture authorized pursuant to this
Article 10 if the amendment or supplemental indenture does not adversely affect the rights, duties,
liabilities or immunities of the Trustee in any material respect. If it does adversely affect the
rights, duties, liabilities or immunities of the Trustee in any material respect, the Trustee may,
in its sole discretion, but need not sign it. In signing or refusing to sign such amendment or
supplemental indenture, the Trustee shall be provided with and, subject to Section 9.01, shall be
fully protected in relying upon, an Officers’ Certificate and an Opinion of Counsel stating that
such amendment or supplemental indenture is authorized or permitted by this Indenture and that all
conditions precedent to the effectiveness of such amendment or supplement have been satisfied or
duly waived.

     Section 10.07 Effect of Supplemental Indentures. Upon the execution of any supplemental
indenture under this Article, this Indenture shall be modified in accordance therewith, and such
supplemental indenture shall form a part of this Indenture for all purposes; and every Holder of
Securities theretofore or thereafter authenticated and delivered hereunder shall be bound thereby.

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ARTICLE 11

SATISFACTION AND DISCHARGE

     Section 11.01 Satisfaction and Discharge of the Indenture. This Indenture shall cease to be
of further effect (except as to any surviving rights of registration of transfer or exchange of
Securities herein expressly provided for), and the Trustee, on demand of and at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and discharge of this
Indenture, when

     (a) either

	 	(i)	 	all Securities theretofore authenticated and
delivered (other than Securities that have been destroyed, lost or
stolen and which have been replaced or paid as provided in Section
2.07) have been delivered to the Trustee for cancellation; or
	 
	 	(ii)	 	all such Securities not theretofore delivered
to the Trustee for cancellation have become due and payable whether at
the Maturity Date, upon acceleration, with respect to any Fundamental
Change Purchase Date or Repurchase Date and the Company deposits with
the Paying Agent or Conversion Agent as the case may be, Cash and other
Settlement Amounts sufficient to pay on such date all amounts due and
owing on all outstanding Securities (other than Securities replaced
pursuant to Section 2.07) on such date;

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

     (c) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture have been complied with.

     Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 9.06 and, if money shall have been deposited with the Trustee
pursuant to Section 11.01(a)(ii), the obligations of the Trustee under Section 11.02 shall survive
such satisfaction and discharge.

     Notwithstanding anything herein to the contrary, Article 11, Section 2.04, Section 2.06,
Section 2.07, Section 2.08, Section 6.01, Section 6.05, Section 6.06 and Section 8.06 shall survive
any discharge of this Indenture until such time as there are no Securities outstanding.

     Section 11.02 Repayment to the Company. The Trustee, the Paying Agent and the Conversion
Agent shall return to the Company upon written request any Cash or securities held by them for the
payment of any amount with respect to the Securities that remains unclaimed for two years, subject
to applicable unclaimed property law. After return to the Company, Holders entitled to the Cash or
securities must look to the Company for payment as general creditors unless an applicable abandoned
property law designates another person and the Trustee, the

63

 

Paying Agent and the Conversion Agent
shall have no further liability to the Securityholders with respect to such Cash or securities for
that period commencing after the return thereof.

ARTICLE 12

MISCELLANEOUS

     Section 12.01 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, including, without limitation, the duties imposed by TIA Section 318(c), the required
provision of the TIA shall control.

     Section 12.02 Notices. Any demand, authorization notice, request, consent or communication
shall be given in writing and delivered in person, sent by overnight courier or mailed by
first-class mail, postage prepaid, addressed as follows or transmitted by facsimile transmission
(confirmed by delivery in person or mail by first-class mail, postage prepaid, or by guaranteed
overnight courier) to the parties hereto as follows:

     If to the Company, to:

Blackboard Inc.

1899 L Street, N.W.

Washington, D.C. 20036

Attention: Chief Legal Officer

Facsimile No.: (212) 463-4863

     If to the Trustee, to:

U.S. Bank National Association

One Federal Street, 3rd Floor

Boston, MA 02110

Attention: Corporate Trust Services

Fax: (617) 603-6667

     Such notices or communications to the Trustee shall be effective when received.

     The Company or the Trustee by notice to the other in the manner prescribed above may designate
additional or different addresses or facsimile numbers for subsequent notices or communications.

     Any notice or communication mailed to a Securityholder shall be mailed by first-class mail,
postage prepaid, or delivered by hand or by an overnight delivery service to it at its address
shown on the Register and shall be sufficiently given if so mailed or delivered within the time
prescribed. Any notice or communication shall also be mailed to any Person described in TIA
Section 313(c), to the extent required by the TIA.

     Failure to mail a notice or communication to a Securityholder or any defect in it shall not
affect its sufficiency with respect to other Securityholders. Except as set forth above as to the

64

 

Trustee, if a notice or communication is mailed in the manner provided above, it is duly
given, whether or not the addressee receives it.

     Section 12.03 Communications by Holders with Other Holders. Securityholders may communicate
pursuant to TIA Section 312(b) with other Securityholders with respect to their rights under this
Indenture or the Securities. The Company, the Trustee, the Registrar, the Paying Agent, the
Conversion Agent and any other Person shall have the protection of TIA Section 312(c).

     Section 12.04 Certificate and Opinion as to Conditions Precedent. (a) Upon any request or
application by the Company to the Trustee to take any action under this Indenture, the Company
shall furnish to the Trustee at the request of the Trustee:

	 	(i)	 	an Officers’ Certificate stating that, in the
opinion of the signers, all conditions precedent (including any
covenants, compliance with which constitutes a condition precedent), if
any, provided for in this Indenture relating to the proposed action
have been complied with; and
	 
	 	(ii)	 	an Opinion of Counsel stating that, in the
opinion of such counsel, all such conditions precedent (including any
covenants, compliance with which constitutes a condition precedent)
have been complied with.

       (b) Each Officers’ Certificate and Opinion of Counsel with respect to compliance with a
condition or covenant provided for in this Indenture (other than an Officers’ Certificate
provided pursuant to Section 6.03) shall include:

	 	(i)	 	a statement that the person making such
certificate or opinion has read such covenant or condition;
	 
	 	(ii)	 	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;
	 
	 	(iii)	 	a statement that, in the opinion of such
person, he or she has made such examination or investigation as is
necessary to enable him or her to express an informed opinion as to
whether or not such covenant or condition has been complied with; and
	 
	 	(iv)	 	a statement as to whether or not, in the
opinion of such person, such condition or covenant has been complied
with;

provided that with respect to matters of fact an Opinion of Counsel may rely on an Officers’
Certificate or certificates of public officials.

     Section 12.05 Record Date for Vote or Consent of Securityholders. The Company may set a record
date for purposes of determining the identity of Holders entitled to vote or consent to

65

 

any action
by vote or consent authorized or permitted under this Indenture, which record date shall not be
more than 30 days prior to the date of the commencement of solicitation of such action.
Notwithstanding the provisions of Section 10.04, if a record date is fixed, those persons who were
Holders of Securities at the Close of Business on such record date (or their duly designated
proxies), and only those persons, shall be entitled to take such action by vote or consent or to
revoke any vote or consent previously given, whether or not such persons continue to be Holders
after such record date.

     Section 12.06 Rules by Trustee, Paying Agent, Registrar and Conversion Agent. The Trustee may
make reasonable rules (not inconsistent with the terms of this Indenture) for action by or at a
meeting of Holders. Any Registrar, Paying Agent or Conversion Agent may make reasonable rules for
its functions.

     Section 12.07 Legal Holidays. A “Legal Holiday” is a Saturday, Sunday or a day on which state
or federally chartered banking institutions in New York, New York are not required to be open. 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 an Interest Payment
Record Date or other record date is a Legal Holiday, the record date shall not be affected.

     Section 12.08 Governing Law; Jury Trial Waiver. This Indenture and the Securities shall be
governed by, and construed in accordance with, the laws of the State of New York.

     EACH OF THE COMPANY AND THE TRUSTEE HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR
INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS INDENTURE.

     Section 12.09 No Adverse Interpretation of Other Agreements. This Indenture may not be used to
interpret another indenture, loan or debt agreement of the Company or a Subsidiary of the Company.
Any such indenture, loan or debt agreement may not be used to interpret this Indenture.

     Section 12.10 No Recourse Against Others. No recourse for the payment of the principal of, or
accrued and unpaid interest, on, any Security, or for any claim based thereon 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 Security, or because of the creation
of any indebtedness represented thereby, shall be had against any past, present or future incorporator,
stockholder, employee, agent, officer or director or Subsidiary of the Company as such or of any
successor corporation, either directly or through the Company or any successor corporation, 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 this Indenture
and the issue of the Securities.

66

 

     Section 12.11 Successors. All agreements of the Company in this Indenture and the Securities
shall bind its successors. All agreements of the Trustee in this Indenture shall bind its
successor.

     Section 12.12 Multiple Counterparts. The parties may sign multiple counterparts of this
Indenture. Each signed counterpart shall be deemed an original, but all of them together shall
represent the same agreement.

     Section 12.13 Separability. In case any provisions in this Indenture or in the Securities
shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

     Section 12.14 Calculations in Respect of the Securities. The Company or its agents shall make
all calculations under this Indenture and the Securities in good faith. In the absence of manifest
error, such calculations shall be final and binding on all Holders. The Company or its agents
shall provide a copy of such calculations to the Trustee as required hereunder, and the Trustee
shall be entitled to rely on the accuracy of any such calculation without independent verification.

     Section 12.15 Table of Contents, Headings, Etc. 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 to be considered a part hereof, and shall in no way modify or restrict any
of the terms or provisions hereof.

[SIGNATURE PAGE FOLLOWS]

67

 

     IN WITNESS WHEREOF, the parties hereto have hereunto set their hands as of the date and year
first above written.

	 	 	 	 	 
	 	BLACKBOARD INC.

 	 
	 	By:  	 /s/
Matthew Small	 
	 	 	Name:  	Matthew Small 	 
	 	 	Title:  	Chief Legal Officer 	 
	 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, 
not in its individual capacity, but solely as Trustee

 	 
	 	By:  	 /s/
James P. Freeman	 
	 	 	Name:  	James P. Freeman 	 
	 	 	Title:  	Vice President 	 
	 

(Signature page to Indenture)

 

 

EXHIBIT A

[FORM OF FACE OF SECURITY]

     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.

 

 

			
	CUSIP NO. 091935 AA4

$165,000,000.00
	 	ISIN NO. US091935AA49

3.250% Convertible Senior Note due 2027

     Blackboard Inc., a Delaware corporation, promises to pay to CEDE & CO., or registered assigns,
the principal sum of One Hundred Sixty-Five Million Dollars on July 1, 2027.

     Interest Payment Dates: January 1 and July 1 (commencing January 1, 2008)

     Record Dates: June 15 and December 15

     Additional provisions of this Security are set forth on the other side of this Security.

Dated: June 20, 2007

	 	 	 	 	 
	 	BLACKBOARD INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Michael J. Beach 	 
	 	 	Title:  	Chief Financial Officer and Treasurer 	 
	 

TRUSTEE’S CERTIFICATE OF

AUTHENTICATION

U.S. BANK NATIONAL ASSOCIATION,

     AS TRUSTEE, CERTIFIES THAT

     THIS IS ONE OF THE SECURITIES

     REFERRED TO IN THE INDENTURE.

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized Signatory
	 	 

 

			
	1	 	Or such later date as is appropriate in the case of Additional Securities.

2

 

[REVERSE SIDE OF SECURITY]

3.250% Convertible Senior Note due 2027

1. Interest.

     Blackboard 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 Security at the rate per annum shown above. Interest on
the Securities will accrue from the most recent date to which interest has been paid or, if no
interest has been paid, from June 20, 2007. Interest will be computed on the basis of a 360-day
year of twelve 30-day months. This Security shall bear interest from the issue date until maturity
at the rate of 3.250% per annum on the principal amount. The Company will pay interest
semiannually on January 1 and July 1 of each year, commencing January 1, 2008.

     All references in this Security to interest shall include any applicable Additional Interest
unless otherwise stated.

2. Method of Payment.

     The Company will pay interest on the Securities (except defaulted interest) to the Persons who
are registered Holders of Securities at the Close of Business on the June 15 or December 15 next
preceding the interest payment date even if Securities are canceled after the record date and on or
before the interest payment date. Holders must surrender Securities to a Paying Agent to collect
principal payments. The Company will pay principal and interest in money of the United States that
at the time of payment is legal tender for payment of public and private debts. Payments in
respect of the Securities represented by a Global Security (including principal, premium and
interest) will be made by wire transfer of immediately available funds to the accounts specified by
The Depository Trust Company. The Company will make all payments in respect of a certificated
Security (including principal, premium, if any, and interest) by mailing a check to the registered
address of each Holder thereof; provided, however, that payments on a certificated Security will be
made by wire transfer to a U.S. dollar account maintained by the payee with a bank in the United
States if such Holder elects payment by wire transfer by giving written notice to the Trustee or
the Paying Agent to such effect designating such account no later than 30 days immediately
preceding the relevant due date for payment (or such other date as the Trustee may accept in its
discretion).

3. Registrar, Paying Agent and Conversion Agent.

     Initially, U.S. Bank National Association (the “Trustee”), will act as Registrar, Paying Agent
and Conversion Agent. The Company may appoint and change any Registrar, Paying Agent and
Conversion Agent or co-registrar without notice. The Company or any of its domestically
incorporated wholly owned Subsidiaries may act as Registrar, Paying Agent and Conversion Agent or
co-registrar.

3

 

4. Indenture.

     The Company issued the Securities under an Indenture dated as of June 20, 2007 (“Indenture”),
among the Company and the Trustee. The terms of the Securities 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 “Act”). Terms
defined in the Indenture and not defined herein have the meanings ascribed thereto in the
Indenture. The Securities are subject to all such terms, and Holders are referred to the Indenture
and the Act for a statement of those terms.

     The Company shall be entitled to issue Additional Securities pursuant to Section 2.02(d) of
the Indenture. The Securities issued on the Issue Date and any Additional Securities will be
treated as a single class for all purposes under the Indenture.

5. Optional Redemption.

     No sinking fund is provided for the Securities. Beginning on July 1, 2011, and during the
periods thereafter to maturity, the Securities are redeemable, in whole at any time, or in part
from time to time, for cash at a price equal to 100% of the principal amount of the Securities plus
accrued and unpaid interest up to but not including the date of redemption; provided that if the
redemption date is between the Close of Business on a record date and the Opening of Business on
the related interest payment date, interest will be payable to the Holders in whose names the
Securities are registered at the Close of Business on the relevant record date. Any redemption
pursuant to this paragraph 5 shall be made pursuant to the provisions of Sections 3.07 through 3.13
of the Indenture.

6. Repurchase of Securities on Specified Dates; Repurchase of Securities upon a
Fundamental Change.

     (a) Subject to the terms and conditions of the Indenture, the Company shall become obligated
to repurchase, at the option of the Holder, on July 1, 2011, July 1, 2017 and July 1, 2022, all or
a portion of the Securities held by such Holder, in any integral multiple of $1,000, for cash at a
price per Security equal to 100% of the aggregate principal amount of the Security, together with
accrued but unpaid interest thereon, up to but not including the Repurchase Date; provided
that accrued but unpaid interest will be payable to the Holders in whose names the Securities are
registered at the Close of Business on the relevant record date. Any repurchase pursuant to this
paragraph (a) shall be made pursuant to the provisions of Section 3.14 of the Indenture.

     (b) At the option of the Holder and subject to the terms and conditions of the Indenture, the
Company shall become obligated to repurchase the Securities held by such Holder after the
occurrence of a Fundamental Change for cash at a price equal to 100% of the principal amount
thereof plus accrued but unpaid interest thereon, up to but not including the Fundamental Change
Repurchase Date; provided that if the Fundamental Change Repurchase Date is between the
Close of Business on a record date and the Opening of Business on the related interest payment
date, accrued but unpaid interest will be payable to the Holders in whose names the Securities are
registered at the Close of Business on the relevant record date. Holders have the

4

 

right to withdraw any Repurchase Notice or Fundamental Change Repurchase Notice, as the case
may be, by delivering to the Paying Agent a written notice of withdrawal in accordance with the
provisions of the Indenture. Any repurchase pursuant to this paragraph (b) shall be made pursuant
to the provisions of Section 3.01 through Section 3.03 of the Indenture.

     (c) If cash sufficient to pay the Repurchase Price or Fundamental Change Repurchase Price, as
the case may be, and accrued but unpaid interest on all Securities or portions thereof to be
repurchased as of the Repurchase Date or the Fundamental Change Repurchase Date, as the case may
be, is held by the Paying Agent by 11:00 a.m., New York time, on the Business Day immediately
following the Repurchase Date or the Fundamental Change Repurchase Date, interest shall cease to
accrue on such Securities (or portions thereof) as of such Repurchase Date or Fundamental Change
Repurchase Date, and the Holder thereof shall have no other rights as such, other than the right to
receive the Repurchase Price or Fundamental Change Repurchase Price, as the case may be, and
interest upon surrender of such Security.

7. Conversion.

     Subject to the occurrence of certain events as set forth in the Indenture and in compliance
with the terms and conditions of the Indenture, prior to the Maturity Date, the Holder has the
right, at its option, to convert each $1,000 principal amount, or any integral multiple thereof, of
the Securities into cash and, if applicable, shares of Common Stock as described in the Indenture.
The Base Conversion Price shall as of the date of the Indenture initially be $64.85 per share of
Common Stock, the Base Conversion Rate shall, as of the date of the Indenture, initially be
approximately 15.4202 shares of Common Stock per $1,000 principal amount of Securities, and the
Incremental Share Factor shall initially be 9.5605 per $1,000 principal amount of Securities,
subject to adjustment from time to time as provided in the Indenture. To convert a Security, the
Holder must deliver this Security (if certificated) with the form entitled “Form of Conversion
Notice” on the reverse hereof duly completed and manually signed, to the Company at the office or
agency of the Conversion Agent, together with any funds required pursuant to the Indenture, and,
unless any shares that may be issuable on conversion are to be issued in the same name as this
Security, duly endorsed by, or accompanied by instruments of transfer in form satisfactory to the
Company duly executed by, the Holder or by its duly authorized attorney. The Company will notify
the Holder of any event triggering the right to convert the Securities as specified above in
accordance with the Indenture. If the Securities are not in certificated form, Holders must
provide notice of their election in accordance with the Applicable Procedures of the Depository.

     If the Company reclassifies its outstanding shares of Common Stock, is a party to a
consolidation or merger, or sells or disposes to another Person all or substantially all of the
assets of the Company, the right to convert a Security into cash and shares of Common Stock will be
changed into a right to convert it into cash and the kind or amount of cash, securities or other
property receivable upon such event, in each case in accordance with and subject to the terms and
conditions of the Indenture.

     In addition, following certain transactions described in the Indenture (subject to the
requirements of Section 5.07 of the Indenture) that occur on or prior to July 1, 2011, that
constitute a Make-Whole Fundamental Change, a Holder who elects to convert its Securities in
connection with such transaction will be entitled to receive Additional Shares upon conversion.

5

 

     If the Securities are converted after the Close of Business on a Record Date and prior to the
Opening of Business on the next Interest Payment Date, including the Maturity Date, Holders of such
Securities at the Close of Business on such regular Record Date shall receive the accrued but
unpaid interest payable on such Securities on the corresponding Interest Payment Date
notwithstanding the conversion. In such event, such Security, when surrendered for conversion,
must be accompanied by delivery of payment to the Conversion Agent in an amount equal to the
accrued but unpaid interest payable on such Interest Payment Date on the portion so converted. If
such payment does not accompany such Security, the Security shall not be converted; provided that
no such payment shall be required if (1) any overdue interest exists at the time of conversion with
respect to the notes being converted but only to the extent of such overdue interest, (2) the
Holder surrenders its Securities for conversion after the Close of Business on the Record Date
relating to the Interest Payment Date on July 1, 2011 and the Interest Payment Date at the Maturity
Date, or (3) such Security has been called for redemption on a Redemption Date within the period
between the Close of Business on such Record Date and the Opening of Business on such Interest
Payment Date. If the Company defaults in the payment of interest payable on the Interest Payment
Date, the Conversion Agent shall promptly repay such funds to the Holder.

     No fractional shares will be issued upon any conversion, 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 Security or Securities for conversion.

     A Security in respect of which a Holder is exercising its right to require repurchase upon a
Fundamental Change or repurchase on a Repurchase Date may be converted only if such Holder
withdraws its election to exercise such right in accordance with the terms of the Indenture.

8. Restrictive Covenants.

     The Indenture imposes certain limitations on, among other things, the ability of the Company
to merge or consolidate with any other Person, all subject to certain limitations described in the
Indenture.

9. Ranking and Guarantees.

     The Securities are general senior unsecured obligations of the Company.

10. Denominations; Transfer; Exchange.

     The Securities are in registered form without coupons in denominations of $1,000 principal
amount and whole multiples of $1,000. A Holder may transfer or exchange Securities in accordance
with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate
endorsements or transfer documents and to pay any taxes and fees required by law or permitted by
the Indenture. The Registrar need not register the transfer of or exchange of any Securities
selected for redemption (except, in the case of a Security to be redeemed in part, the portion of
the Security not to be redeemed) or any Securities for a period of 15 Business Days before the
mailing of a notice of an offer to repurchase or redeem Securities or 15 Business Days before an
Interest Payment Date.

6

 

11. Persons Deemed Owners.

     The registered Holder of this Security may be treated as the owner of it for all purposes.

12. Unclaimed Money.

     If money for the payment of principal or interest remains unclaimed for two years, the Trustee
or Paying Agent shall pay the money back to the Company at its request unless an abandoned property
law designates another Person. After any such payment, Holders entitled to the money must look
only to the Company and not to the Trustee for payment.

13. Amendment, Supplement, Waiver.

     Subject to certain exceptions, the Indenture or the Securities may be amended or supplemented
with the consent of the Holders of at least a majority of the outstanding principal amount of the
Securities, and any past default or noncompliance with any provision may be waived with the consent
of the Holders of a majority in principal amount of the Securities. Without the consent of any
Holder, the Company may amend or supplement the Indenture or the Securities to, among other things,
cure any ambiguity, defect or inconsistency or to make any change that does not adversely affect
the rights of any Holder in any material respect.

14. Successor Corporation.

     When a successor corporation assumes all the obligations of its predecessor under the
Securities and the Indenture, the predecessor corporation will be released from those obligations.

15. Defaults and Remedies.

     Subject to certain limitations in the Indenture, if an Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of the then outstanding
Securities may declare all the Securities to be due and payable immediately, except that in the
case of an Event of Default arising from certain events of bankruptcy, insolvency or
reorganization, all outstanding Securities shall become due and payable immediately without further
action or notice. Holders may not enforce the Indenture or the Securities except as provided in
the Indenture. The Trustee may require indemnity satisfactory to it before it enforces the
Indenture or the Securities. Subject to certain limitations, Holders of a majority in principal
amount of the Securities may direct the Trustee in its exercise of any trust or power. The Company
must furnish an annual compliance certificate to the Trustee.

16. Trustee Dealings with 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 Securities 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 the
Trustee.

7

 

17. No Recourse Against Others.

     No recourse under or upon any obligations, covenant or agreement of the Company contained in
the Indenture, or in this Security, or because of any indebtedness evidenced thereby or hereby,
shall be had against any incorporator, as such, or against any past, present or future employee,
stockholder, officer or director, as such, of the Company or of any successor, either directly or
through the Company or any successor, under any rule of law, statute or constitutional provision or
by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such
liability being expressly waived and released by the acceptance of the Securities by the Holders
and as part of the consideration for the issuance of the Securities.

18. Authentication.

     This Security shall not be valid until the Trustee or an authenticating agent signs the
certificate of authentication on the other side of this Security.

19. Abbreviations.

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

20. CUSIP Numbers.

     Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Company will cause CUSIP numbers to be printed on the Securities as a convenience
to Holders of the Securities. No representation is made as to the accuracy of such numbers as
printed on the Securities and reliance may be placed only on the other identification numbers
printed hereon.

21. Governing Law.

     THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK.

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

Blackboard Inc.

1899 L Street NW, 11th Floor

Washington, DC 20036

Attention: Treasurer

8

 

SCHEDULE OF EXCHANGES OF SECURITIES1

     The following exchanges, redemptions, purchases or conversions of a part of
this Global Security have been made:

	 	 	 	 	 	 	 	 	 
	DATE OF 

DECREASE OR 

INCREASE
	 	AUTHORIZED

SIGNATORY OF

SECURITIES
	 	DECREASE IN

PRINCIPAL

AMOUNT OF

THIS GLOBAL

SECURITY
	 	INCREASE IN

PRINCIPAL

AMOUNT OF

THIS GLOBAL

SECURITY
	 	PRINCIPAL

AMOUNT OF

THIS GLOBAL

SECURITY

FOLLOWING

SUCH

DECREASE OR

INCREASE
	 
	 	 
	 	 
	 	 
	 	 

 

			
	1	 	This schedule to be included if the Security is a Global Security.

9

 

ASSIGNMENT FORM2

To assign this Security, fill in the form below:

I or we assign and transfer this Security to

 

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

 

(Insert assignee’s Social Security or tax I.D. No.)

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

 

	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	Your Signature:	 	 
	 

	 	 
	 	 	 	 	 	 

 

Sign exactly as your name appears on the other side of this Security.

	 	 	 
	 

	 	 
	 

	 	Signature
	 
	 	 
	 

	 	Signature Guarantee:
	 
	 	 
	 

	 	 
	 

	 	Signature

     Signatures 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.

 

			
	2	 	This Form and the following Forms to be
included only if the Security is a Certificated Security.

10

 

FORM OF REPURCHASE NOTICE

			
	To:	 	Blackboard Inc.

               The undersigned registered holder of this Security requests and instructs Blackboard Inc. (the
“Company”) to repurchase this Security, or the portion hereof (which is $1,000 principal amount or
a multiple thereof) designated below, on the date specified below under “Date of Requested
Repurchase”, in accordance with the terms and conditions specified in paragraph 6 of this Security
and Section 3.14 of the Indenture referred to in this Security and directs that the check in
payment for this Security or the portion thereof and any Securities representing the portion of
principal amount hereof not to be so repurchased, be issued and delivered to the registered holder
hereof unless a different name has been indicated below. If any portion of this Security not
repurchased is to be issued in the name of a Person other than the undersigned, the undersigned
shall pay all transfer taxes payable with respect thereto.

Dated:

	 	 	 
	 

	 	 
	 

	 	Signature(s)

Fill in for registration of Securities not

repurchased if to be issued other than to

and in the name of the registered holder:

 

(Name)

 

(Street Address)

 

(City, state and zip code)

Please print name and address

	 	 	 	 	 	 	 
	Principal amount to be repurchased (if less than all):

	 	 	$	 	 	 
	 

	 	 	 	 	 	 

Date of Requested Repurchase: July 1, 20___

     (specify either July 1, 2011, July 1, 2017 and July 1, 2022)

	 	 	 
	Certificate number (if applicable):
	 	 
	 

	 	 

 

 

FORM OF CONVERSION NOTICE

     To convert the entire principal amount represented by this Security into shares of Common
Stock and Cash in lieu of any fractional shares, and as provided in the Indenture check the box o

     To convert only part of this Security, state the principal amount to be converted (which must
be $1,000 or a multiple of $1,000):

 

     If you want the stock certificate made out in another person’s name, fill in the form below:

 

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

 

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

     The undersigned (the “Applicant”) hereby makes application for the issuance of record to the
name of the Applicant of shares of Common Stock.

Dated:                                         

	 	 	 	 	 
	 

	 	Your Signature:	 	 
	 

	 	 	 	 
	 

	 	 	 	(Sign exactly as your name appears on the other side of the Security)

Signature Guaranteed

Participant in a Recognized Signature

Guarantee Medallion Program

By:                                         

      Authorized Signatory

 

 

FORM OF FUNDAMENTAL CHANGE PURCHASE NOTICE

U.S. Bank National Association

One Federal Street, 3rd Floor

Boston, MA 02110

Attention: Corporate Trust Services

Fax: (617) 603-6667

Re: Blackboard Inc. (the “Company”)

3.250% Convertible Senior Notes due July 1, 2027

This is a Fundamental Change Purchase Notice as defined in Section 3.01(c) of the Indenture, dated
as of June 20, 2007 (the “Indenture”), between the Company and U.S. Bank National Association, as
Trustee. Terms used but not defined herein shall have the meanings ascribed to them in the
Indenture.

	 	 	 
	       Certificate No(s). of Securities:

	 	 
	 

	 	 

     $                                        

     I intend to deliver the following aggregate principal amount of Securities for purchase by the
Company pursuant to Section 3.01(a) of the Indenture (in multiples of $1,000):

     $                                        

     I hereby agree that the Securities shall be purchased on the Fundamental Change Purchase Date
pursuant to the terms and conditions specified in paragraph 6 of the Securities and in Article 3 of
the Indenture.

Print Name of Holder:                                        

Signature:                                                            

                (Sign exactly as your name appears on the other side of this Security)

 

 

EXHIBIT B

     The following table sets forth the increase in the Applicable Conversion Rate, expressed as a
number of additional shares of Common Stock to be received per $1,000 principal amount of
Securities, upon a conversion in connection with a Make-Whole Fundamental Change that occurs in the
corresponding period.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Effective Date
	 	 	 	 	 	 	 	June 20,	 	July 1,	 	July 1,	 	July 1,	 	July 1,
	Stock Price	 	 	 	 	2007	 	2008	 	2009	 	2010	 	2011
	$	40.03	 	 	 
	 	 	 	9.56	 	 	 	9.56	 	 	 	9.56	 	 	 	9.56	 	 	 	9.56	 
	$	45.00	 	 	 
	 	 	 	8.22	 	 	 	7.61	 	 	 	7.01	 	 	 	6.52	 	 	 	6.80	 
	$	50.00	 	 	 
	 	 	 	7.32	 	 	 	6.59	 	 	 	5.78	 	 	 	4.91	 	 	 	4.58	 
	$	55.00	 	 	 
	 	 	 	6.73	 	 	 	5.93	 	 	 	4.99	 	 	 	3.86	 	 	 	2.76	 
	$	60.00	 	 	 
	 	 	 	6.36	 	 	 	5.52	 	 	 	4.52	 	 	 	3.24	 	 	 	1.25	 
	$	65.00	 	 	 
	 	 	 	6.11	 	 	 	5.26	 	 	 	4.24	 	 	 	2.91	 	 	 	0.00	 
	$	70.00	 	 	 
	 	 	 	5.31	 	 	 	4.47	 	 	 	3.46	 	 	 	2.14	 	 	 	0.00	 
	$	75.00	 	 	 
	 	 	 	4.66	 	 	 	3.85	 	 	 	2.87	 	 	 	1.62	 	 	 	0.00	 
	$	80.00	 	 	 
	 	 	 	4.14	 	 	 	3.36	 	 	 	2.42	 	 	 	1.25	 	 	 	0.00	 
	$	85.00	 	 	 
	 	 	 	3.71	 	 	 	2.97	 	 	 	2.08	 	 	 	1.00	 	 	 	0.00	 
	$	90.00	 	 	 
	 	 	 	3.36	 	 	 	2.65	 	 	 	1.82	 	 	 	0.83	 	 	 	0.00	 
	$	95.00	 	 	 
	 	 	 	3.06	 	 	 	2.39	 	 	 	1.61	 	 	 	0.71	 	 	 	0.00	 
	$	100.00	 	 	 
	 	 	 	2.81	 	 	 	2.17	 	 	 	1.44	 	 	 	0.62	 	 	 	0.00	 
	$	125.00	 	 	 
	 	 	 	1.99	 	 	 	1.50	 	 	 	0.97	 	 	 	0.42	 	 	 	0.00	 
	$	150.00	 	 	 
	 	 	 	1.53	 	 	 	1.16	 	 	 	0.75	 	 	 	0.33	 	 	 	0.00	 
	$	175.00	 	 	 
	 	 	 	1.25	 	 	 	0.94	 	 	 	0.62	 	 	 	0.27	 	 	 	0.00	 
	$	200.00	 	 	 
	 	 	 	1.05	 	 	 	0.79	 	 	 	0.52	 	 	 	0.23	 	 	 	0.00	 
	$	225.00	 	 	 
	 	 	 	0.90	 	 	 	0.68	 	 	 	0.45	 	 	 	0.20	 	 	 	0.00	 
	$	250.00	 	 	 
	 	 	 	0.78	 	 	 	0.59	 	 	 	0.39	 	 	 	0.17	 	 	 	0.00	 
	$	275.00	 	 	 
	 	 	 	0.68	 	 	 	0.52	 	 	 	0.34	 	 	 	0.15	 	 	 	0.00	 
	$	300.00	 	 	 
	 	 	 	0.61	 	 	 	0.46	 	 	 	0.30	 	 	 	0.13	 	 	 	0.00

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