Document:

EX-4.1 INDENTURE, DATED AS OF NOVEMBER 22, 2006

 

Exhibit 4.1

RARE Hospitality International, Inc.

2.50% Convertible Senior Notes due 2026

INDENTURE

Dated as of November 22, 2006

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

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	1	 
	Section 1.01. Definitions
	 	 	1	 
	Section 1.02. Other Definitions
	 	 	9	 
	Section 1.03. Trust Indenture Act Provisions
	 	 	9	 
	Section 1.04. Rules of Construction
	 	 	10	 
	ARTICLE 2 THE SECURITIES
	 	 	10	 
	Section 2.01. Form and Dating
	 	 	10	 
	Section 2.02. Execution and Authentication
	 	 	12	 
	Section 2.03. Registrar, Paying Agent and Conversion Agent
	 	 	13	 
	Section 2.04. Paying Agent to Hold Money in Trust
	 	 	13	 
	Section 2.05. Lists of Holders of Securities
	 	 	14	 
	Section 2.06. Transfer and Exchange
	 	 	14	 
	Section 2.07. Replacement Securities
	 	 	15	 
	Section 2.08. Outstanding Securities
	 	 	16	 
	Section 2.09. Treasury Securities
	 	 	16	 
	Section 2.10. Temporary Securities
	 	 	17	 
	Section 2.11. Cancellation
	 	 	17	 
	Section 2.12. Legend; Additional Transfer and Exchange Requirements
	 	 	17	 
	Section 2.13. CUSIP Numbers
	 	 	20	 
	ARTICLE 3 REPURCHASE
	 	 	21	 
	Section 3.01. Repurchase at Option of Holders upon a Fundamental Change
	 	 	21	 
	Section 3.02. Repurchase at Option of Holders on Certain Dates
	 	 	24	 
	Section 3.03. Repayment to the Company
	 	 	26	 
	Section 3.04. Securities Purchased in Part
	 	 	27	 
	Section 3.05. Compliance with Securities Laws upon Purchase of Securities
	 	 	27	 
	Section 3.06. Purchase of Securities in Open Market
	 	 	27	 
	ARTICLE 4 CONVERSION
	 	 	27	 
	Section 4.01. Conversion Privilege and Conversion Rate
	 	 	27	 
	Section 4.02. Conversion Procedure
	 	 	32	 
	Section 4.03. Fractional Shares
	 	 	33	 

i

 

	 	 	 	 	 
	 	 	Page
	Section 4.04. Taxes on Conversion
	 	 	33	 
	Section 4.05. Company to Provide Stock
	 	 	34	 
	Section 4.06. Adjustment of Conversion Rate
	 	 	34	 
	Section 4.07. No Adjustment
	 	 	40	 
	Section 4.08. Notice of Adjustment
	 	 	40	 
	Section 4.09. Notice of Certain Transactions
	 	 	41	 
	Section 4.10. Effect of Consolidation, Merger or Binding Share Exchange
	 	 	41	 
	Section 4.11. Withholding
	 	 	41	 
	Section 4.12. Trustee’s Disclaimer
	 	 	41	 
	Section 4.13. Conversion Settlement
	 	 	42	 
	ARTICLE 5 COVENANTS
	 	 	42	 
	Section 5.01. Payment of Securities
	 	 	42	 
	Section 5.02. SEC and Other Reports
	 	 	43	 
	Section 5.03. Compliance Certificates
	 	 	43	 
	Section 5.04. Further Instruments and Acts
	 	 	44	 
	Section 5.05. Maintenance of Corporate Existence
	 	 	44	 
	Section 5.06. Rule 144A Information Requirement
	 	 	44	 
	Section 5.07. Stay, Extension and Usury Laws
	 	 	44	 
	Section 5.08. Payment of Additional Interest
	 	 	44	 
	Section 5.09. Maintenance of Office or Agency
	 	 	45	 
	ARTICLE 6 CONSOLIDATION; MERGER; CONVEYANCE; TRANSFER OR LEASE
	 	 	45	 
	Section 6.01. Company May Consolidate, Etc., Only on Certain Terms
	 	 	45	 
	Section 6.02. Successor Substituted
	 	 	46	 
	ARTICLE 7 DEFAULT AND REMEDIES
	 	 	46	 
	Section 7.01. Events of Default
	 	 	46	 
	Section 7.02. Acceleration
	 	 	48	 
	Section 7.03. Other Remedies
	 	 	49	 
	Section 7.04. Waiver of Defaults and Events of Default
	 	 	49	 
	Section 7.05. Control by Majority
	 	 	49	 
	Section 7.06. Limitations on Suits
	 	 	50	 
	Section 7.07. Rights of Holders to Receive Payment and to Convert
	 	 	50	 
	Section 7.08. Collection Suit by Trustee
	 	 	51	 
	Section 7.09. Trustee May File Proofs of Claim
	 	 	51	 

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	 	 	Page
	Section 7.10. Priorities
	 	 	51	 
	Section 7.11. Undertaking for Costs
	 	 	52	 
	ARTICLE 8 TRUSTEE
	 	 	52	 
	Section 8.01. Obligations of Trustee
	 	 	52	 
	Section 8.02. Rights of Trustee
	 	 	53	 
	Section 8.03. Individual Rights of Trustee
	 	 	55	 
	Section 8.04. Trustee’s Disclaimer
	 	 	55	 
	Section 8.05. Notice of Default or Events of Default
	 	 	55	 
	Section 8.06. Reports by Trustee to Holders
	 	 	55	 
	Section 8.07. Compensation and Indemnity
	 	 	55	 
	Section 8.08. Replacement of Trustee
	 	 	56	 
	Section 8.09. Successor Trustee by Merger, Etc
	 	 	57	 
	Section 8.10. Eligibility; Disqualification
	 	 	57	 
	Section 8.11. Preferential Collection of Claims Against Company
	 	 	58	 
	ARTICLE 9 SATISFACTION AND DISCHARGE OF INDENTURE
	 	 	58	 
	Section 9.01. Satisfaction and Discharge of Indenture
	 	 	58	 
	Section 9.02. Application of Trust Money
	 	 	59	 
	Section 9.03. Repayment to Company
	 	 	59	 
	Section 9.04. Reinstatement
	 	 	59	 
	ARTICLE 10 AMENDMENTS; SUPPLEMENTS AND WAIVERS
	 	 	60	 
	Section 10.01. Without Consent of Holders
	 	 	60	 
	Section 10.02. With Consent of Holders
	 	 	61	 
	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.
	 	 	63	 
	Section 10.07. Effect of Supplemental Indentures
	 	 	63	 
	ARTICLE 11 REDEMPTION
	 	 	63	 
	Section 11.01. Redemption
	 	 	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 Holder
	 	 	65	 

iii

 

	 	 	 	 	 
	 	 	Page
	Section 12.04. Certificate and Opinion as to Conditions Precedent
	 	 	66	 
	Section 12.05. Record Date for Vote or Consent of Holders of Securities
	 	 	66	 
	Section 12.06. Rules by Trustee, Paying Agent, Registrar and Conversion Agent
	 	 	67	 
	Section 12.07. Legal Holidays
	 	 	67	 
	Section 12.08. Governing Law
	 	 	68	 
	Section 12.09. No Adverse Interpretation of Other Agreements
	 	 	68	 
	Section 12.10. No Recourse Against Others
	 	 	68	 
	Section 12.11. No Security Interest Created
	 	 	68	 
	Section 12.12. Successors
	 	 	68	 
	Section 12.13. Multiple Counterparts
	 	 	68	 
	Section 12.14. Separability
	 	 	68	 
	Section 12.15. Table of Contents, Headings, Etc.
	 	 	68	 
	Exhibit
	 	 	A-1	 

iv

 

CROSS REFERENCE TABLE*

	 	 	 	 	 
	TIA	 	 	 	INDENTURE
	SECTION	 	 	 	SECTION
	Section
	 	310 	 	12.01 
	 
	 	310(a)(1)	 	8.10 
	 
	 	(a)(2)	 	8.10 
	 
	 	(a)(3)	 	N.A.**
	 
	 	(a)(4)	 	N.A.
	 
	 	(a)(5)	 	8.10 
	 
	 	(b)	 	8.08, 8.10 
	 
	 	(c)	 	N.A.
	Section
	 	311 	 	12.01 
	 
	 	311(a)	 	8.11 
	 
	 	(b)	 	8.11 
	 
	 	(c)	 	N.A.
	Section
	 	312 	 	12.01 
	 
	 	312(a)	 	2.05 
	 
	 	(b)	 	12.03 
	 
	 	(c)	 	12.03 
	Section
	 	313 	 	12.01 
	 
	 	313(a)	 	8.06(a)
	 
	 	(b)(1)	 	N.A.
	 
	 	(b)(2)	 	8.06(a)
	 
	 	(c)	 	8.06(a)
	 
	 	(d)	 	8.06(b)
	Section
	 	314 	 	12.01 
	 
	 	314(a)	 	5.02(a); 5.03 
	 
	 	(b)	 	N.A.
	 
	 	(c)(1)	 	2.02; 9.01; 12.04 
	 
	 	(c)(2)	 	9.01; 12.04 
	 
	 	(c)(3)	 	N.A.
	 
	 	(d)	 	N.A.
	 
	 	(e)	 	12.04 
	 
	 	(f)	 	N.A.
	Section
	 	315 	 	12.01 
	 
	 	315(a)	 	8.01(b)
	 
	 	(b)	 	8.05 
	 
	 	(c)	 	8.01(a)
	 
	 	(d)	 	8.01(c)
	 
	 	(d)(2)	 	8.01(c)
	 
	 	(d)(3)	 	8.01(c)
	 
	 	(e)	 	7.11 
	Section
	 	316 	 	12.01 
	 
	 	316(a)	 	7.05; 10.02(b)
	 
	 	(b)	 	7.07 
	 
	 	(c)	 	12.05(a)

 

 

	 	 	 	 	 
	TIA	 	 	 	INDENTURE
	SECTION	 	 	 	SECTION
	Section
	 	317 	 	12.01 
	 
	 	317(a)(1)	 	7.08 
	 
	 	317(a)(2)	 	7.09 
	 
	 	317(b)	 	2.04 
	Section
	 	318 	 	12.01 

 

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

	 
	**	 	N.A. means Not Applicable.

 

 

     THIS INDENTURE dated as of November 22, 2006 is between RARE Hospitality International, Inc.,
a corporation duly organized under the laws of the State of Georgia (the “Company”), and The Bank
of New York Trust Company, N.A., as Trustee (the “Trustee”).

     In consideration of the purchase of the Securities (as defined herein) by the Holders thereof,
both parties agree as follows for the benefit of the other and 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 the Registration Rights Agreement. All
references herein to interest accrued or payable as of any date shall include any Additional
Interest accrued or payable as of such date as provided in the Registration Rights Agreement.

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

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

     “Applicable Conversion Period” means, with respect to a conversion of Securities, the 10
consecutive Trading Day period commencing on the third Trading Day following the date the
Securities are tendered for conversion.

     “Applicable Conversion Rate” means, as of any Trading Day, the Conversion Rate in effect on
such date after giving effect to any adjustment provided for under Section 4.06 or Section 4.01(h).

     “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, to the extent
applicable to such transfer or exchange.

     “Average Price” means, with respect to a conversion of Securities, an amount equal to the
average of the Closing Sale Prices of shares of Common Stock for each Trading Day in the Applicable
Conversion Period.

     “Beneficial Ownership” means the definition such term is given in accordance with Rule 13d-3
promulgated by the SEC under the Exchange Act.

     “Board of Directors” means either the board of directors of the Company or any committee of
the Board of Directors authorized to act for it with respect to this Indenture.

 

 

     “Business Day” means any day, other than a Saturday, Sunday or any other day on which banking
institutions in The City of New York are authorized or obligated by law or executive order to
close.

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

     “Cash” or “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.

     “Certificated Security” means a Security that is in substantially the form attached as Exhibit
A but that does not include the information or the schedule called for by footnote 1 thereof.

     “Closing Sale Price” of the Common Stock or other capital stock or similar equity interests or
other publicly traded securities on any Trading Day means the closing sale price per share (or, if
no closing sale price is reported, the average of the closing bid and ask prices or, if more than
one in either case, the average of the average closing bid and the average closing ask prices) on
such date as reported on the principal United States securities exchange on which the Common Stock
or such other capital stock or similar equity interests or other securities are traded or, if the
Common Stock or such other capital stock or similar equity interests or other securities is not
listed on a United States national or regional securities exchange, as reported on another
established over-the-counter trading market in the United States. The Closing Sale Price shall be
determined without regard to after-hours trading or extended market making. In the absence of the
foregoing, the Company shall determine the Closing Sale Price on such basis as it considers
appropriate.

     “Common Stock” means the common stock of the Company, no par value, as it exists on the date
of this Indenture and any shares of any class or classes of Capital Stock of the Company resulting
from any reclassification or reclassifications thereof, or, in the event of a merger, consolidation
or other similar transaction involving the Company that is otherwise permitted hereunder in which
the Company is not the surviving corporation the common stock, common equity interests, ordinary
shares or depositary shares or other certificates representing common equity interests of such
surviving corporation or its direct or indirect parent corporation, and which have no preference in
respect of dividends or of amounts payable in the event of any voluntary or involuntary
liquidation, dissolution or winding-up of the Company and which are not subject to redemption by
the Company; provided, however, that if at any time there shall be more than one such resulting
class, the shares of each such class then so issuable on conversion of Securities 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.

2

 

     “Conversion Date” means, with respect to a Security, the date on which the Holder of the
Security has complied with Section 4.02.

     “Conversion Price” per share of Common Stock as of any day means the result obtained by
dividing (i) $1,000 by (ii) the Applicable Conversion Rate, rounded to the nearest cent, which
price shall be initially $43.54 per share of Common Stock.

     “Conversion Rate” means the rate at which shares of Common Stock shall be delivered upon
conversion, which rate shall be initially 22.9690 shares of Common Stock for each $1,000 principal
amount of Securities, as adjusted from time to time pursuant to the provisions of this Indenture.

     “Conversion Value” means, for each $1,000 principal amount of Securities, the product of (a)
the Applicable Conversion Rate and (b) the Average Price.

     “Corporate Trust Office” means the office of the Trustee at which at any particular time the
trust created by this Indenture shall be administered, which initially will be the office of The
Bank of New York Trust Company, N.A. located at 100 Ashford Center North, Suite 520, Atlanta,
Georgia 30338, attention: Corporate Trust Administration.

     “Daily Share Amount” for each $1,000 principal amount of Securities and each Trading Day in
the Applicable Conversion Period is equal to the greater of:

     (a) zero; and

     (b) a number of shares of Common Stock determined by the following formula:

	 	 	 
	(CSP x CR) — ($1,000 + Net Cash Amount, if any)
	 	 
	 	 	 
	10 x CSP	 	 

          where:

          “CSP” means the Closing Sale Price per share of Common Stock on such Trading Day,

          “CR” means the Applicable Conversion Rate, and

          “Net Cash Amount” has the meaning set forth in this Section 1.01.

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

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

     “Ex-dividend Date” means the first date upon which a sale of shares of the Common Stock does
not automatically transfer the right to receive the relevant distribution from the seller of shares
of the Common Stock to its buyer.

3

 

     “Final Maturity Date” means November 15, 2026.

     “Fundamental Change” means the occurrence at any time any of any of the following events:

     (1) consummation of any transaction or event (whether by means of a share exchange or
tender offer applicable to shares of Common Stock, a liquidation, consolidation,
recapitalization, reclassification, combination or merger of the Company or a sale, lease or
other transfer of all or substantially all of the consolidated assets of the Company) or a
series of related transactions or events pursuant to which all of the shares of outstanding
Common Stock are exchanged for, converted into or constitute solely the right to receive,
cash, securities or other property;

     (2) any “person” or “group” (as such terms are used for purposes of Sections 13(d) and
14(d) of the Exchange Act, whether or not applicable), other than the Company or any
majority-owned subsidiary of the Company, any employee benefit plan of the Company or such
subsidiary, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of more than 50% of the total voting power in the
aggregate of all classes of shares of the capital stock of the Company then outstanding
entitled to vote generally in elections of directors;

     (3) during any period of 12 consecutive months beginning after the date of original
issuance of the Securities, persons who at the beginning of such 12-month period constituted
the Board of Directors of the Company, together with any new persons whose election was
approved by a vote of a majority of the persons then still comprising the Board of Directors
of the Company who were either members of the Board of Directors of the Company at the
beginning of such period or whose election, designation or nomination for election was
previously so approved, cease for any reason to constitute a majority of the Board of
Directors of the Company;

     (4) the Common Stock (or other common stock into which the Securities are then
convertible) ceases to be listed on a national or regional securities exchange in the United
States; or

     (5) the Company’s shareholders approve any plan or proposal for the liquidation or
dissolution of the Company.

     Notwithstanding the foregoing, even if any of the events specified in the preceding clauses
(1) through (3) have occurred, except as specified in clause (x) below, a Fundamental Change will
not be deemed to have occurred if either: (x) the Closing Sale Price per share of Common Stock for
any five Trading Days within (i) the period of 10 consecutive Trading Days ending immediately after
the later of the Fundamental Change or the public announcement of the Fundamental Change, in the
case of a Fundamental Change relating to an acquisition of Capital Stock, or (ii) the period of 10
consecutive Trading Days ending immediately after the Fundamental Change, in the case of a
Fundamental Change relating to a merger, consolidation or asset sale, equals or exceeds 105% of the
Conversion Price in effect on each of those Trading Days; provided, however, that the exception to
the definition of “Fundamental Change” specified

4

 

in this clause (x) shall not apply in the context of a Fundamental Change for purposes of
Section 4.01(h), Section 4.01(a)(4) or Section 4.01(a)(5); or (y) at least 90% of the consideration
(excluding cash payments for fractional shares and cash payments made pursuant to dissenters’
appraisal rights) in a merger, consolidation or other transaction otherwise constituting a
Fundamental Change consists of shares of common stock (or depositary receipts or other certificates
representing common equity interests) traded on a U.S. national securities exchange or another
established automated over-the-counter trading market in the United States (or will be so traded or
quoted immediately following such merger, consolidation or other transaction) and as a result of
the merger, consolidation or other transaction the Securities become convertible into such shares
of common stock (or depositary receipts or other certificates representing common equity
interests). For the purposes of this definition, “person” includes any syndicate or group that
would be deemed to be a “person” under Section 13(d)(3) of the Exchange Act.

     “Fundamental Change Effective Date” means the date on which any Fundamental Change becomes
effective.

     “Fundamental Change Purchase Date” has the meaning provided in Section 3.01(b) hereof.

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

     “Fundamental Change Purchase Price” of any Security, means 100% of the principal amount of the
Security to be purchased plus accrued and unpaid interest, if any, and Additional Interest, if any,
to, but excluding, the Fundamental Change Purchase Date.

     “GAAP” means generally accepted accounting principles in the United States of America as in
effect from time to time, including those set forth in (1) the opinions and pronouncements of the
Accounting Principles Board of the American Institute of Certified Public Accountants, (2) the
statements and pronouncements of the Public Company Accounting Oversight Board and the Financial
Accounting Standards Board, (3) such other statements by such other entity as approved by a
significant segment of the accounting profession and (4) the rules and regulations of the SEC
governing the inclusion of financial statements (including pro forma financial statements) in
registration statements filed under the Securities Act and periodic reports required to be filed
pursuant to Section 13 of the Exchange Act, including opinions and pronouncements in staff
accounting bulletins and similar written statements from the accounting staff of the SEC.

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

     “Holder” or “Holder of a Security” means the person in whose name a Security is registered on
the Registrar’s books.

     “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 automatically deemed to be a
part of this Indenture by operation of the TIA.

5

 

     “Initial Purchasers” means Wachovia Capital Markets, LLC and RBC Capital Markets Corporation.

     “Interest Payment Date” means May 15 and November 15, commencing May 15, 2007.

     “Issue Date” of any Security means the date on which the Security was originally issued or
deemed issued as set forth on the face of the Security.

     “Net Amount” has the meaning provided in Section 4.13(a) hereof.

     “Net Cash Amount” has the meaning provided in Section 4.13(b) hereof.

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

     “Officers’ Certificate” means a certificate signed by the Chairman of the Board, the Chief
Executive Officer, the President, any Vice President, the Chief Operating Officer, the Chief
Financial Officer or the Chief Accounting Officer of the Company and by the Controller, the
Treasurer, an Assistant Treasurer, the Secretary or any Assistant Secretary of the Company, and
delivered to the Trustee.

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

     “Optional Repurchase Date” has the meaning provided in Section 3.02(a) hereof.

     “Optional Repurchase Notice” has the meaning provided in Section 3.02(c) hereof.

     “Optional Repurchase Price” has the meaning provided in Section 3.02(a) hereof.

     “Outstanding” means Securities outstanding in accordance with Section 2.08.

     “Person” or “person” means any individual, corporation, partnership, limited liability
company, joint venture, association, joint-stock company, trust, unincorporated organization,
government or any agency or political subdivision thereof or any syndicate or group that would be
deemed to be a “person” under Section 13(d)(3) of the Exchange Act or any other entity.

     “Principal” or “principal” of a debt security, including the Securities, means the principal
of the debt security plus, when appropriate, the premium, if any, on the debt security.

     “Redemption Date” means, with respect to any Security or portion thereof to be redeemed in
accordance with the provisions of Section 11.01 hereof, the date fixed for such redemption in
accordance with the provisions of Section 11.01 hereof.

     “Redemption Price” has the meaning provided in Section 11.01(b) hereof.

6

 

     “Registration Rights Agreement” means the Registration Rights Agreement, dated as of November
22, 2006, between the Company and the Initial Purchasers, as amended from time to time in
accordance with its terms.

     “Regular Record Date” means, with respect to each Interest Payment Date, the May 1 or November
1 (whether or not a Business Day) as the case may be, immediately preceding such Interest Payment
Date.

     “Responsible Officer” means, when used with respect to the Trustee, any officer within the
corporate trust services department of the Trustee with direct responsibility for the
administration of this Indenture and also means, with respect to a particular corporate trust
matter, any other officer to whom such matter is referred because of such person’s knowledge of and
familiarity with the particular subject.

     “Restricted Global Security” means a Global Security that is a Restricted Security.

     “Restricted Security” means a Security required to bear the restricted legend set forth in the
form of Security annexed as Exhibit A.

     “Rule 144” means Rule 144 under the Securities Act or any successor to such Rule.

     “Rule 144A” means Rule 144A under the Securities Act or any successor to such Rule.

     “SEC” means the Securities and Exchange Commission.

     “Securities” means (x) the $125,000,000 aggregate principal amount of 2.50% Convertible Senior
Notes due 2026, or any of them, as amended or supplemented from time to time, that are issued under
this Indenture on the date of this Indenture (or on or before December 16, 2006 if the Initial
Purchasers exercise their overallotment option) (the “Initial Securities” and each an “Initial
Security”), and (y) any additional notes issued under this Indenture from time to time, in addition
to the Initial Securities, on the same terms and conditions and with the same CUSIP number as the
Initial Securities (the “Additional Securities” and, together with the Initial Securities, the
“Securities” and each a “Security”). Any Additional Securities subsequently issued under this
Indenture shall be of the same series as the Initial Securities and shall rank equally with the
Initial Securities. The Initial Securities and any Additional Securities subsequently issued under
this Indenture shall be treated as a single class for all purposes under this Indenture, including,
without limitation, waivers, amendments, redemptions, repurchases, offers to purchase and
conversions.

     “Securities Act” means the 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 Securities in
global form, or any successor thereto.

     “Significant Subsidiary” means, in respect of any Person, as of any date of determination, a
Subsidiary of such Person that would constitute a “significant subsidiary” as such term is

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defined under Rule 1-02(w) of Regulation S-X under the Securities Act as in effect on the date
of this Indenture.

     “Subsidiary” means, in respect of any Person, any corporation, association, partnership or
other business entity of which more than 50% of the total voting power of shares of Capital Stock
entitled (without regard to the occurrence of any contingency within the control of such Person to
satisfy) to vote in the election of directors, managers, general partners or trustees thereof is at
the time owned or controlled, directly or indirectly, by (i) such Person, (ii) such Person and one
or more Subsidiaries of such Person or (iii) one or more Subsidiaries of such Person.

     “TIA” means the Trust Indenture Act of 1939, as amended, and the rules and regulations
thereunder as in effect on the date of this Indenture, except to the extent that the Trust
Indenture Act or any amendment thereto expressly provides for application of the Trust Indenture
Act as in effect on another date.

     “Trading Day” means a day during which trading in securities generally occurs on The NASDAQ
Global Select Market or, if shares of Common Stock are not then listed on The NASDAQ Global Select
Market or The NASDAQ Global Market, on the principal other United States national or regional
securities exchange on which shares of Common Stock are then listed or, if shares of Common Stock
are not then listed on a United States national or regional securities exchange, on the principal
other market on which shares of Common Stock are then traded. A “Trading Day” only includes those
days that have a scheduled closing time of 4:00 p.m. (New York City time) or the then standard
closing time for regular trading on the relevant exchange or trading system.

     “Trading Price” means, with respect to the Securities on any date of determination, the
average of the secondary market bid quotations per $1,000 principal amount of Securities obtained
by the Trustee for a $1,000,000 principal amount of Securities at approximately 3:30 p.m., New York
City time, on such determination date from two independent nationally recognized securities dealers
selected by the Company, which may include one or more of the Initial Purchasers. If at least two
such bids cannot reasonably be obtained by the Trustee, but one such bid can reasonably be obtained
by the Trustee, then one bid shall be used. If the Trustee cannot reasonably obtain at least one
bid for a $1,000,000 principal amount of Securities from a nationally recognized securities dealer
or, in the reasonable judgment of the Company, the bid quotations are not indicative of the
secondary market value of the Securities, then the Trading Price per $1,000 principal amount of
Securities shall be deemed to be less than 98% of the product of the Closing Sale Price of shares
of Common Stock and the Applicable Conversion Rate on such determination date.

     “Trustee” means the party named as such in the first paragraph of this Indenture until a
successor replaces it in accordance with the provisions of this Indenture, and thereafter means the
successor.

     “Trust Officer” means, with respect to the Trustee, any officer assigned to the Corporate
Trust Office, and also, with respect to a particular matter, any other officer to whom such matter
is referred because of such officer’s knowledge of and familiarity with the particular subject.

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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.”

     Section 1.02. Other Definitions.

	 	 	 	 	 
	Term	 	Defined in Section
	“Additional Fundamental Change Shares”
	 	 	4.01	(h)
	“Agent Members”
	 	 	2.01	 
	“Bankruptcy Law”
	 	 	7.01	 
	“Company Order”
	 	 	2.02	 
	“Company Notice”
	 	 	3.01	 
	“Conversion Agent”
	 	 	2.03	 
	“Conversion Date”
	 	 	4.02	 
	“Depositary”
	 	 	2.01	 
	“Distribution Notice”
	 	 	4.01	(c)
	“DTC”
	 	 	2.01	 
	“Event of Default”
	 	 	7.01	 
	“Expiration Time”
	 	 	4.06	 
	“Legal Holiday”
	 	 	11.07	 
	“Legend”
	 	 	2.12	 
	“Make Whole Premium”
	 	 	4.01	 
	“Net Amount”
	 	 	4.13	 
	“Net Cash Amount”
	 	 	4.13	 
	“Net Shares”
	 	 	4.13	 
	“Notice of Default”
	 	 	7.01	 
	“Paying Agent”
	 	 	2.03	 
	“Primary Registrar”
	 	 	2.03	 
	“Principal Return”
	 	 	4.13	 
	“QIB”
	 	 	2.01	 
	“Receiver”
	 	 	7.01	 
	“Registrar”
	 	 	2.03	 
	“record date”
	 	 	4.06	 
	“Share Price”
	 	 	4.01	(h)
	“Spin-Off”
	 	 	4.06	(a)(3)
	“tender offer”
	 	 	4.06	 

     Section 1.03. 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. This Indenture shall also include those provisions
of the TIA required to be included herein by the provisions of the Trust Indenture Reform Act of
1990.

     The following TIA terms used in this Indenture have the following meanings:

     “indenture securities” means the Securities;

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     “indenture security holder” means a Holder of a Security;

     “indenture to be qualified” means this Indenture;

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

     “obligor” on the indenture securities means the Company or any other 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 1.04. Rules of Construction.

     Unless the context otherwise requires:

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

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

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

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

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

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

     (7) all “Article”, “Exhibit” and “Section” references are to Articles, Exhibits and
Sections, respectively, of or to this Indenture unless otherwise specified herein, and the
terms “herein,” “hereof” and other words of similar import refer to this Indenture as a
whole and not to any particular Article, Section or other subdivision.

ARTICLE 2

THE SECURITIES

     Section 2.01. Form and Dating.

     The Securities and the Trustee’s certificate of authentication shall be substantially in the
respective forms set forth in Exhibit A, which Exhibit is incorporated in and made part of this
Indenture. The Securities may have notations, legends or endorsements required by law, stock
exchange or automated quotation system rule or regulation or usage. The Company shall

10

 

provide any such notations, legends or endorsements to the Trustee in writing. Each Security
shall be dated the date of its authentication.

     (a) Restricted Global Securities. All of the Securities are initially being offered
and sold to qualified institutional buyers as defined in Rule 144A (collectively, “QIBS” or
individually, each a “QIB”) in reliance on Rule 144A under the Securities Act and shall be issued
initially in the form of one or more Restricted Global Securities, which shall be deposited on
behalf of the purchasers of the securities represented thereby with the Securities Custodian, as
custodian for the depositary, The Depository Trust Company (“DTC”, and such depositary, or any
successor thereto, being hereinafter referred to as the “Depositary”), and registered in the name
of its nominee, Cede & Co. (or any successor thereto), for the accounts of participants in the
Depositary, duly executed by the Company and authenticated by the Trustee as hereinafter provided.
The aggregate principal amount of the Restricted Global Securities may from time to time be
increased or decreased by adjustments made on the records of the Securities Custodian as
hereinafter provided, subject in each case to compliance with the Applicable Procedures.

     (b) Global Securities In General. The Securities issued in global form shall be
substantially in the form of Exhibit A attached hereto (including the Global Security Legend
thereon and the “Schedule of Exchanges of Securities” attached thereto). The Securities issued in
definitive form shall be substantially in the form of Exhibit A attached hereto (but without the
Global Security Legend thereon and without the “Schedule of Exchanges of Securities” attached
thereto). 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 replacements, exchanges, purchases, redemptions, or conversions of such
Securities. 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 Section 2.12 and shall be made on the records of the Trustee and the Depositary.

     Members of, or participants in, the Depositary (“Agent Members”) shall have no 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 (1) 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 (2) impair, as between the Depositary and its Agent Members, the operation of
customary practices governing the exercise of the rights of a Holder of any Security.

     (c) Book Entry Provisions. The Company shall execute and the Trustee shall, in
accordance with this Section 2.01(c), authenticate and deliver initially one or more Global
Securities that (1) shall be registered in the name of the Depositary or its nominee, (2) shall be
delivered by the Trustee to the Depositary or pursuant to the Depositary’s instructions and (3)
shall bear legends substantially to the following effect:

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“UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN. THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE
NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN
WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY
A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY
OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF
SUCH SUCCESSOR DEPOSITARY.”

     Section 2.02. Execution and Authentication.

     (a) The aggregate principal amount of Securities which may be authenticated and delivered
under this Indenture is unlimited. Initially, $125,000,000 aggregate principal amount of Initial
Securities shall be authenticated and delivered under this Indenture.

     (b) An Officer shall sign the Securities for the Company by manual or facsimile signature.
Typographic and other minor errors or defects in any such facsimile signature shall not affect the
validity or enforceability of any Security that has been authenticated and delivered by the
Trustee.

     (c) If an officer 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.

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

     (e) The Trustee shall authenticate and make available for delivery Securities for original
issue upon receipt of a written order or orders of the Company signed by an Officer of

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the Company (a “Company Order”). The Company Order shall specify the amount of Securities to
be authenticated, shall provide that all such securities will be represented by a Restricted Global
Security and the date on which each original issue of Securities is to be authenticated.

     (f) The Trustee shall act as the initial authenticating agent. Thereafter, the Trustee may
appoint an authenticating agent reasonably 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.

     (g) 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.

     (a) The Company shall maintain one or more offices or agencies where Securities may be
presented for registration of transfer or for exchange (each, a “Registrar”), one or more offices
or agencies where Securities may be presented for payment (each, a “Paying Agent”), one or more
offices or agencies where Securities may be presented for conversion (each, a “Conversion Agent”)
and one or more offices or agencies where notices and demands to or upon the Company in respect of
the Securities and this Indenture may be served. The Company will at all times maintain a Paying
Agent, Conversion Agent, Registrar 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 in the Borough of Manhattan,
The City of New York. One of the Registrars (the “Primary Registrar”) shall keep a register of the
Securities and of their transfer and exchange.

     (b) The Company shall enter into an appropriate agency agreement with any Agent not a party to
this Indenture, provided that the Agent may be an Affiliate of the Trustee. 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, 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 (except for
the purposes of Section 5.01 and Article 9).

     (c) The Company hereby initially designates the Trustee as Paying Agent, Registrar, Securities
Custodian and Conversion Agent, and initially designates the Corporate Trust Office of the Trustee
as an office or agency where notices and demands to or upon the Company in respect of the
Securities and this Indenture shall be served.

     Section 2.04. Paying Agent to Hold Money in Trust.

     Prior to 10:00 a.m., New York City time, on each due date of the payment of principal of, or
interest on, any Securities, the Company shall deposit with the Paying Agent a sum sufficient to
pay such principal or interest so becoming due. Subject to Section 9.02, a Paying Agent shall hold
in trust for the benefit of Holders of Securities or the Trustee all money held by the Paying Agent
for the payment of principal of, or interest on, the Securities, and shall notify the Trustee

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of any failure by the Company (or any other obligor on the Securities) to make any such
payment. If the Company or an Affiliate of the Company acts as Paying Agent, it shall, before
10:00 a.m., New York City time, on each due date of the principal of, or interest on, any
Securities, segregate the money and hold it as a separate trust fund. The Company at any time may
require a Paying Agent to pay all money held by it to the Trustee, and the Trustee may at any time
during the continuance of any Default, upon written request to a Paying Agent, require such Paying
Agent to pay forthwith to the Trustee all sums so held in trust by such Paying Agent. Upon doing
so, the Paying Agent (other than the Company) shall have no further liability for the money. The
Company or an Affiliate of the Company shall not act as Paying Agent in connection with a
redemption pursuant to Article 11 or pursuant to repurchase pursuant to Section 3.01 and Section
3.02.

     Section 2.05. Lists of Holders of Securities.

     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 Holders of Securities. If the Trustee is not
the Primary 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 in such form and as of
such date as the Trustee may reasonably require of the names and addresses of Holders of
Securities.

     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 be duly endorsed or accompanied by an assignment form and, if applicable, a transfer
certificate each in the form included in Exhibit A, and completed in a manner satisfactory to the
Registrar and 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 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 or other governmental charge
that may be imposed in relation thereto (other than any such taxes or other governmental charge
payable upon exchange or transfer pursuant to Sections 2.10, 2.12(a), 3.04, 4.02(e), or 4.04).

     (b) Neither the Company, any Registrar nor the Trustee shall be required to exchange, issue or
register the transfer or conversion of (1) in the event of any redemption in part, any Security
during a period beginning at the opening of business 15 days before any selection of Securities for
redemption and ending at the close of business on the earliest date on which the relevant notice of
redemption is deemed to have been given to all Holders of Securities to be so redeemed, or (2) any
Securities or portions thereof in respect of which a Fundamental Change

14

 

Purchase Notice or an Optional Repurchase Notice has been delivered and not withdrawn by the
Holder thereof.

     (c) 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.

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

     (e) Each Holder of a Security agrees to indemnify the Company and the Trustee against any
liability that may result from the transfer, exchange or assignment of such Holder’s Security in
violation of any provision of this Indenture and/or applicable United States federal or state
securities law.

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

     Section 2.07. Replacement Securities.

     (a) If any mutilated Security is surrendered to the Company, a Registrar or the Trustee, and
the Company, a Registrar and the Trustee receive evidence to their satisfaction of the destruction,
loss or theft of any Security, and there is delivered to the Company, the applicable Registrar and
the Trustee such security or indemnity as will be 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 purchaser, the Company shall execute, and upon its written request the
Trustee shall 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.

     (b) If any such mutilated, destroyed, lost or stolen Security has become or is about to become
due and payable, or is about to be purchased by the Company pursuant to Article 3, or converted
pursuant to Article 4, the Company in its discretion may, instead of issuing a new Security, pay,
purchase or convert such Security, as the case may be.

     (c) 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 or other governmental charge that may be imposed
in relation thereto as a result of any Securities, at the request of any Holder, being issued to a
Person other than such Holder and any other reasonable expenses (including the reasonable fees and
expenses of the Trustee or the Registrar) in connection therewith.

15

 

     (d) 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 hereunder.

     (e) 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.

     Section 2.08. Outstanding Securities.

     (a) Securities outstanding at any time are all Securities authenticated by the Trustee, except
for those canceled by it, those purchased pursuant to Article 3, those converted pursuant to
Article 4, those redeemed by the Company pursuant to Article 11, those delivered to the Trustee for
cancellation or surrendered for transfer or exchange and those described in this Section 2.08 as
not outstanding.

     (b) If a Security is replaced pursuant to Section 2.07, it ceases to be outstanding unless the
Company receives proof satisfactory to it that the replaced Security is held by a bona fide
purchaser.

     (c) If a Paying Agent (other than the Company or an Affiliate of the Company) holds in respect
of the outstanding Securities on a Fundamental Change Purchase Date, Optional Repurchase Date,
Redemption Date or the Final Maturity Date money sufficient to pay the principal of (including
premium, if any), accrued interest and Additional Interest, if any, on Securities (or portions
thereof) payable on that date, then on and after such Fundamental Change Purchase Date, Optional
Repurchase Date, Redemption Date or Final Maturity Date, as the case may be, such Securities (or
portions thereof, as the case may be) shall cease to be outstanding and cash interest and
Additional Interest, if any, on them shall cease to accrue.

     (d) Subject to the restrictions contained in Section 2.09, a Security does not cease to be
outstanding 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
concurred in any notice, 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, except that, for purposes of determining whether the Trustee shall be protected in
relying on any such notice, direction, waiver or consent, only Securities which a Trust Officer of
the Trustee with responsibility for this Indenture 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 the Company or any other obligor on the
Securities or any Affiliate of the Company or of such other obligor.

16

 

     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 with the consent of the Trustee considers appropriate for temporary
Securities. Without unreasonable delay, the Company shall prepare and the Trustee shall
authenticate and deliver definitive Securities in exchange for temporary Securities.

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

     Section 2.11. Cancellation.

     The Company at any time may deliver Securities to the Trustee for cancellation. The Registrar,
the Paying Agent and the Conversion Agent shall forward to the Trustee or its agent any Securities
surrendered to them for transfer, exchange, purchase, payment or conversion. The Trustee and no
one else shall cancel, in accordance with its standard procedures, all Securities surrendered for
transfer, exchange, purchase, payment, conversion or cancellation and shall dispose of the
cancelled Securities in accordance with its customary procedures or deliver the canceled Securities
to the Company. All Securities which are purchased, redeemed or otherwise acquired by the Company
or any of its Subsidiaries prior to the Final Maturity Date pursuant to Article 3 shall be
delivered to the Trustee for cancellation, and the Company may not hold or resell such Securities
or issue any new Securities to replace any such Securities or any Securities that any Holder has
converted pursuant to Article 4.

     Section 2.12. Legend; Additional Transfer and Exchange Requirements.

     (a) If Securities are issued upon the transfer, exchange or replacement of Securities subject
to restrictions on transfer and bearing the legends set forth on the forms of Securities attached
as Exhibit A (collectively, the “Legend”), or if a request is made to remove the Legend on a
Security, the Securities so issued shall bear the Legend, or the Legend shall not be removed, as
the case may be, unless there is delivered to the Company and the Registrar such satisfactory
evidence, which shall include an Opinion of Counsel if requested by the Company or such Registrar,
as may be reasonably required by the Company and the Registrar, that neither the Legend nor the
restrictions on transfer set forth therein are required to ensure that transfers thereof comply
with the provisions of Rule 144A or Rule 144 under the Securities Act or that such Securities are
not “restricted” within the meaning of Rule 144 under the Securities Act; provided that no such
evidence need be supplied in connection with the sale of such Security pursuant to a registration
statement that is effective at the time of such sale. Upon (1) provision of such satisfactory
evidence if requested or (2) notification by the Company to the Trustee and Registrar of the sale
of such Security pursuant to a registration statement that is effective at the time of such sale,
the Trustee, at the written direction of the Company, shall authenticate and deliver a Security
that does not bear the Legend. If the Legend is removed from the face of a Security and the
Security is subsequently held by an Affiliate of the Company, the Legend shall be reinstated.

17

 

     (b) A Global Security may not be transferred, in whole or in part, to any Person other than
the Depositary or a nominee or any successor thereof, and no such transfer to any such other Person
may be registered; provided that the foregoing shall not prohibit any transfer of a Security that
is issued in exchange for a Global Security but is not itself a Global Security. No transfer of a
Security to any Person shall be effective under this Indenture or the Securities unless and until
such Security has been registered in the name of such Person. Notwithstanding any other provisions
of this Indenture or the Securities, transfers of a Global Security, in whole or in part, shall be
made only in accordance with this Section 2.12.

     (c) Subject to Section 2.12(b) and in compliance with Section 2.12(d), every Security shall be
subject to the restrictions on transfer provided in the Legend. Whenever any Restricted Security
other than a Restricted Global Security is presented or surrendered for registration of transfer or
in exchange for a Security registered in a name other than that of the Holder, such Security must
be accompanied by a certificate in substantially the form set forth in Exhibit A, dated the date of
such surrender and signed by the Holder of such Security, as to compliance with such restrictions
on transfer. The Registrar shall not be required to accept for such registration of transfer or
exchange any Security not so accompanied by a properly completed certificate.

     (d) The restrictions imposed by the Legend upon the transferability of any Security shall
cease and terminate when such Security has been sold pursuant to an effective registration
statement under the Securities Act or transferred in compliance with Rule 144 under the Securities
Act (or any successor provision thereto) or, if earlier, upon the expiration of the holding period
applicable to sales thereof under Rule 144(k) under the Securities Act (or any successor
provision). Any Security as to which such restrictions on transfer shall have expired in
accordance with their terms or shall have terminated may, upon a surrender of such Security for
exchange to the Registrar in accordance with the provisions of this Section 2.12 (accompanied, in
the event that such restrictions on transfer have terminated by reason of a transfer in compliance
with Rule 144 or any successor provision, by, if requested by the Company or the Registrar, an
Opinion of Counsel reasonably acceptable to the Company and the Registrar and addressed to the
Company and the Registrar, to the effect that the transfer of such Security has been made in
compliance with Rule 144 or such successor provision), be exchanged for a new Security, of like
tenor and aggregate principal amount, which shall not bear the restrictive Legend. The Company
shall inform the Trustee of the effective date of any registration statement registering the offer
and sale of the Securities under the Securities Act. The Trustee shall not be liable for any
action taken or omitted to be taken by it in good faith in accordance with the aforementioned
Opinion of Counsel or registration statement.

     As used in Sections 2.12(c) and (d), the term “transfer” encompasses any sale, pledge,
transfer, hypothecation or other disposition of any Security.

     (e) The provisions below shall apply only to Global Securities:

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

18

 

     (2) Notwithstanding any other provisions of this Indenture or the Securities, a Global
Security shall not be exchanged in whole or in part for a Security registered, and no
transfer of a Global Security in whole or in part shall be registered in the name of any
Person other than the Depositary or one or more nominees thereof; provided that a Global
Security may be exchanged for securities registered in the names of any person designated by
the Depositary in the event that (A) the Depositary has notified the Company that it is
unwilling or unable to continue as Depositary for such Global Security or such Depositary
has ceased to be a “clearing agency” registered under the Exchange Act, and a successor
Depositary is not appointed by the Company within 90 days after receiving such notice or
becoming aware that the Depositary has ceased to be a “clearing agency,” or (B) an Event of
Default has occurred and is continuing with respect to the Securities. Any Global Security
exchanged pursuant to subclause (A) above shall be so exchanged in whole and not in part,
and any Global Security exchanged pursuant to subclause (B) above may be exchanged in whole
or from time to time in part as directed by the Depositary. Any Security issued in exchange
for a Global Security or any portion thereof shall be a Global Security; provided further
that any such Security so issued that is registered in the name of a Person other than the
Depositary or a nominee thereof shall not be a Global Security.

     (3) Securities issued in exchange for a Global Security or any portion thereof shall be
issued in definitive, fully registered form, without interest coupons, shall have an
aggregate principal amount equal to that of such Global Security or portion thereof to be so
exchanged, shall be registered in such names and be in such authorized denominations as the
Depositary shall designate and shall bear the applicable legends provided for herein. Any
Global Security to be exchanged in whole shall be surrendered by the Depositary to the
Trustee, as Registrar. With regard to any Global Security to be exchanged in part, either
such Global Security shall be so surrendered for exchange or, if the Trustee is acting as
custodian for the Depositary or its nominee with respect to such Global Security, the
principal amount thereof shall be reduced, by an amount equal to the portion thereof to be
so exchanged, by means of an appropriate adjustment made on the records of the Trustee.
Upon any such surrender or adjustment, the Trustee shall authenticate and deliver the
Security issuable on such exchange to or upon the order of the Depositary or an authorized
representative thereof.

     (4) Subject to clause (6) of this Section 2.12(e), the registered Holder may grant
proxies and otherwise authorize any Person, including Agent Members and Persons that may
hold interests through Agent Members, to take any action which a Holder is entitled to take
under this Indenture or the Securities.

     (5) In the event of the occurrence of any of the events specified in clause (2) of this
Section 2.12(e), the Company will promptly make available to the Trustee a reasonable supply
of Certificated Securities in definitive, fully registered form, without interest coupons.

     (6) Neither Agent Members nor any other Persons on whose behalf Agent Members may act
shall have any rights under this Indenture with respect to any Global Security registered in
the name of the Depositary or any nominee thereof, or under any

19

 

such Global Security, and the Depositary or such nominee, as the case may be, may be
treated by the Company, the Trustee and any agent of the Company or the Trustee as the
absolute owner and Holder of such Global Security for all purposes whatsoever.
Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee or any
agent of the Company or the Trustee from giving effect to any written certification, proxy
or other authorization furnished by the Depositary or such nominee, as the case may be, or
impair, as between the Depositary, its Agent Members and any other Person on whose behalf an
Agent Member may act, the operation of customary practices of such Persons governing the
exercise of the rights of a Holder of any Security.

     (7) At such time as all interests in a Global Security have been converted, canceled or
exchanged for Securities in certificated form, such Global Security shall, upon receipt
thereof, be cancelled by the Trustee in accordance with standing procedures and instructions
existing between the Depositary and the Securities Custodian, subject to Section 2.11 of
this Indenture. At any time prior to such cancellation, if any interest in a Global
Security is converted, canceled or exchanged for Securities in certificated form, the
principal amount of such Global Security shall, in accordance with the standing procedures
and instructions existing between the Depositary and the Securities Custodian, be
appropriately reduced, and an endorsement shall be made on such Global Security, by the
Trustee or the Securities Custodian, at the direction of the Trustee, to reflect such
reduction.

     (f) Until the expiration of the holding period applicable to sales thereof under Rule 144(k)
under the Securities Act (or any successor provision thereto), any stock certificate representing
Common Stock issued upon conversion of any Security shall bear the restrictive legend required to
be included with a Restricted Security, unless such Common Stock has been sold pursuant to a
registration statement that has been declared effective under the Securities Act (and which
continues to be effective at the time of such transfer) or transferred in compliance with Rule 144
under the Securities Act (or any successor provision thereto), or such Common Stock has been issued
upon conversion of Securities that have been transferred pursuant to a registration statement that
has been declared effective under the Securities Act or pursuant to Rule 144 under the Securities
Act (or any successor provision thereto), or unless otherwise agreed by the Company in writing with
written notice thereof to the transfer agent.

     Any such Common Stock as to which such restrictions on transfer shall have expired in
accordance with their terms or as to which the conditions for removal of the restrictive legend set
forth therein have been satisfied may, upon surrender of the certificates representing such shares
of Common Stock for exchange in accordance with the procedures of the transfer agent for the Common
Stock, be exchanged for a new certificate or certificates for a like number of shares of Common
Stock, which shall not bear the restrictive legend required by this section.

     Section 2.13. CUSIP Numbers.

     The Company in issuing the Securities may use one or more “CUSIP” numbers (if then generally
in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of purchase as a convenience
to Holders; provided that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Securities or as contained in any

20

 

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 will promptly notify the Trustee of any change in the “CUSIP”
numbers.

ARTICLE 3

REPURCHASE

     Section 3.01. Repurchase at Option of Holders upon a Fundamental Change.

     (a) If a Fundamental Change occurs at any time, a Holder of Securities shall have the right to
require the Company to repurchase such Holder’s Securities, in whole or in part (in principal
amounts of $1,000 or an integral multiple thereof) for cash equal to the Fundamental Change
Purchase Price, subject to satisfaction by or on behalf of the Holder of the requirements set forth
below.

     (b) Within 20 days after the occurrence of a Fundamental Change, the Company shall notify the
Holders of the Fundamental Change (the “Company Notice”). The notice shall include a form of
Fundamental Change Purchase Notice to be completed by the Holder and shall state:

     (1) briefly, the events causing a Fundamental Change and the date of such Fundamental
Change;

     (2) the date by which the Fundamental Change Purchase Notice must be delivered to the
Paying Agent;

     (3) the date on which the Company will repurchase Securities in connection with a
Fundamental Change, which must be not less than 15 days nor more than 30 days after the
date of the Company Notice (such date, the “Fundamental Change Purchase Date”);

     (4) the Fundamental Change Purchase Price;

     (5) the name and address of the Trustee, the Paying Agent and the Conversion Agent;

     (6) that Securities in respect of which a Fundamental Change Purchase Notice is
provided by a Holder shall not be converted in accordance with their terms, even of
otherwise convertible, unless such Holder validly withdraws such Fundamental Change
Purchase Notice in accordance with the provisions of this Section 3.01;

     (7) that Securities must be surrendered to the Paying Agent to collect payment of the
Fundamental Change Purchase Price;

     (8) that the Fundamental Change Purchase Price for any Security as to which a
Fundamental Change Purchase Notice has been duly given will be paid within

21

 

two Business Days after the later of the Fundamental Change Purchase Date or the time
at which such Securities are surrendered for repurchase;

     (9) that, unless the Company defaults in making payment of the Fundamental Change
Purchase Price, interest on Securities surrendered for repurchase will cease to accrue on
and after the Fundamental Change Purchase Date; and

     (10) the CUSIP number of the Securities.

     The Company shall deliver a copy of the Company Notice to the Trustee. The Company shall also
disseminate a press release through Dow Jones & Company, Inc. or Bloomberg Business News announcing
the occurrence of such Fundamental Change or publish such information in a newspaper of general
circulation in The City of New York.

     (c) A Holder may exercise its rights specified in this Section 3.01 upon delivery of a written
notice of such Holder’s exercise of its repurchase right (a “Fundamental Change Purchase Notice”)
to the Trustee (or any Paying Agent) at any time prior to the close of business on the third
Business Day prior to the Fundamental Change Purchase Date, stating:

     (1) if such Securities are in certificated form, the certificate number(s) of the
Securities which the Holder will deliver to be repurchased;

     (2) the principal amount of the Securities to be repurchased, in integral multiples
of $1,000, provided that the remaining principal amount of Securities is in an authorized
denomination; and

     (3) that such Security shall be repurchased pursuant to the applicable provisions
hereof and of the Securities.

     The Trustee (or any Paying Agent) shall promptly notify the Company in writing of the receipt
by it of any Fundamental Change Purchase Notice.

     Book-entry transfer of Securities in book-entry form in compliance with the Applicable
Procedures or delivery of Securities in certificated form (together with all necessary
endorsements) to the Paying Agent at the offices of the Paying Agent shall be a condition to the
receipt by the Holder of the Fundamental Change Purchase Price therefor. Holders electing to
require the Company to repurchase Securities must effect such transfer or delivery to the Paying
Agent prior to the Fundamental Change Purchase Date to receive payment of the Fundamental Change
Purchase Price on or within two Business Days after the Fundamental Change Purchase Date. The
Company shall pay the Fundamental Change Purchase Price within two Business Days after the later of
the Fundamental Change Purchase Date or the time of such transfer or delivery of the Securities.

     (d) If a Holder delivers a Fundamental Change Purchase Notice, it may not thereafter surrender
Securities for conversion unless such Fundamental Change Purchase Notice is withdrawn as permitted
below. A Fundamental Change Purchase Notice may be withdrawn in whole or in part by a Holder by
means of a written notice of withdrawal delivered to the office of

22

 

the Paying Agent prior to the close of business on the third Business Day prior to the
Fundamental Change Purchase Date specifying:

     (1) the Holder’s name;

     (2) the principal amount of Securities in respect of which the Fundamental Change
Purchase Notice is being withdrawn, which must be an integral multiple of $1,000;

     (3) if the Securities subject to the notice of withdrawal are in certificated form,
the certificate number(s) of all Securities subject to the notice of withdrawal; and

     (4) the principal amount of Securities, if any, that remains subject to the
Fundamental Change Purchase Notice, which must be an integral multiple of $1,000.

     If Securities subject to the notice of withdrawal are in book-entry form, the above notices
must also comply with the Applicable Procedures.

     (e) On or before 10:00 a.m. (New York City time) on the Fundamental Change Purchase Date, the
Company shall deposit with the Paying Agent money sufficient to pay the aggregate Fundamental
Change Purchase Price of the Securities to be purchased pursuant to this Section 3.01. If the
Paying Agent holds, in accordance with the terms of this Indenture, money sufficient to pay the
Fundamental Change Purchase Price of such Securities on the Fundamental Change Purchase Date, then,
on and after such date, such Securities shall cease to be Outstanding and interest on such
Securities shall cease to accrue and all rights of the Holders of such Securities shall terminate
(other than the right to receive the Fundamental Change Purchase Price (and Additional Interest, if
any) due on the Fundamental Change Purchase Date). Such will be the case whether or not book entry
transfer of the Securities in book entry form is made and whether or not Securities in certificated
form, together with the necessary endorsements, are delivered to the Paying Agent.

     (f) Notwithstanding the foregoing, no Securities may be repurchased by the Company in
accordance with the provisions of this Section 3.01 if there has occurred and is continuing an
Event of Default with respect to the Securities (other than a default in the payment of the
Fundamental Change Purchase Price for such Securities).

     (g) The Paying Agent will promptly return to the respective Holders thereof any Securities
with respect to which a Fundamental Change Purchase Notice has been withdrawn in compliance with
this Indenture.

     (h) If a Fundamental Change Purchase Date falls after a Regular Record Date and on or before
the related Interest Payment Date, then interest on the Securities payable on such Interest Payment
Date will be payable to the Holders in whose names the Securities are registered at the close of
business on such Regular Record Date.

     (i) The Company may arrange for a third party to purchase any Securities for which it receives
a valid Fundamental Change Purchase Notice that is not withdrawn, in the manner and otherwise in
compliance with the requirements set forth in this Section 3.01 applicable to the

23

 

repurchase right with respect to the Securities. If a third party purchases any Securities
under these circumstances, then interest will continue to accrue on those Securities and those
Securities will continue to be Outstanding after the Fundamental Change Purchase Date and will be
fungible with all Securities then Outstanding. The third party subsequently may resell those
purchased Securities to other investors. In addition, the Company shall not be required to make an
offer to repurchase the Securities upon a Fundamental Change if a third party makes such offer to
repurchase the Securities in the manner, at the times and otherwise in compliance with the
requirements described in this Section 3.01 applicable to an offer to repurchase the Securities by
the Company and purchases all Securities validly tendered and not withdrawn.

     Section 3.02. Repurchase at Option of Holders on Certain Dates.

     (a) A Holder of Securities shall have the right to require the Company to repurchase such
Holder’s Securities, in whole or in part (in principal amounts of $1,000 or an integral multiple
thereof), on each of November 15, 2013, November 15, 2016, and November 15, 2021 (each, an
“Optional Repurchase Date”) for cash equal to 100% of the principal amount of the Securities to be
repurchased plus accrued but unpaid interest (including Additional Interest, if any) to, but
excluding, the Optional Repurchase Date (such amount, the “Optional Repurchase Price”), subject to
satisfaction by or on behalf of the Holder of the requirements set forth below.

     (b) On or before the 20th Business Day prior to each Optional Repurchase Date, the Company
shall provide a written notice by first class mail to the Trustee, any Paying Agent and all Holders
(and to beneficial owners as required by applicable law). The notice shall include a form of
Optional Repurchase Notice to be completed by the Holder and shall state:

     (1) the date by which the Optional Repurchase Notice must be delivered to the Paying
Agent;

     (2) the Optional Repurchase Date;

     (3) the Optional Repurchase Price;

     (4) the name and address of the Trustee, the Paying Agent and the Conversion Agent;

     (5) that Securities must be surrendered to the Paying Agent to collect payment of the
Optional Repurchase Price;

     (6) that the Optional Repurchase Price for any Security as to which an Optional
Repurchase Notice has been duly given will be paid within two Business Days after the later
of the Optional Repurchase Date or the time at which such Securities are surrendered for
repurchase;

     (7) that, unless the Company defaults in making payment of the Optional Repurchase
Price, interest on Securities surrendered for repurchase will cease to accrue on and after
the Optional Repurchase Date;

24

 

     (8) that Securities in respect of which an Optional Repurchase Notice is provided by a
Holder shall not be convertible in accordance with their terms even if otherwise convertible
unless such Holder validly withdraws such Optional Repurchase Notice in accordance with the
provisions of this Section 3.02; and

     (9) the CUSIP number of the Securities.

     The Company shall also disseminate a press release through Dow Jones & Company, Inc. or
Bloomberg Business News containing the information specified in such notice or publish that
information in a newspaper of general circulation in The City of New York.

     (c) A Holder may exercise its rights specified in this Section 3.02 upon delivery of a written
notice of repurchase (an “Optional Repurchase Notice”) to the Paying Agent during the period
beginning at any time from the opening of business on the date that is 20 Business Days prior to
the applicable Optional Repurchase Date until the close of business on the third Business Day prior
to such Optional Repurchase Date, stating:

     (1) if such Securities are in certificated form, the certificate number(s) of the
Securities which the Holder will deliver to be repurchased;

     (2) the portion of the principal amount of the Securities to be repurchased, in
integral multiples of $1,000, provided that the remaining principal amount of Securities is
in an authorized denomination; and

     (3) that such Securities shall be repurchased pursuant to the applicable provisions
hereof and the Securities.

     The Paying Agent shall promptly notify the Company in writing of the receipt by it of any
Optional Repurchase Notice.

     (d) Book entry transfer of Securities in book entry form in compliance with the Applicable
Procedures or delivery of Securities in certificated form, together with all necessary
endorsements, to the Paying Agent at the offices of the Paying Agent shall be a condition to the
receipt by the Holder of the Optional Repurchase Price. Holders electing to require the Company to
repurchase Securities must effect such transfer or delivery to the Paying Agent prior to the
Optional Repurchase Date to receive payment of the Optional Repurchase Price on or within two
Business Days after the Optional Repurchase Date. The Company shall pay the Optional Repurchase
Price within two Business Days after the later of the Optional Repurchase Date or the time of such
transfer or delivery of the Securities.

     (e) If a Holder delivers an Optional Repurchase Notice, it may not thereafter surrender
Securities for conversion unless such Optional Repurchase Notice is withdrawn as permitted below.
An Optional Repurchase Notice may be withdrawn in whole or in part by a Holder by means of a
written notice of withdrawal delivered to the office of the Paying Agent prior to the close of
business on the third Business Day prior to the Optional Repurchase Date specifying:

     (1) the Holder’s name;

25

 

     (2) the principal amount of Securities in respect of which the Optional Repurchase
Notice is being withdrawn, which must be an integral multiple of $1,000;

     (3) if the Securities subject to the notice of withdrawal are in certificated form, the
certificate number(s) of all Securities subject to the notice of withdrawal; and

     (4) the principal amount of Securities, if any, that remains subject to the Optional
Repurchase Notice, which must be an integral multiple of $1,000.

     If Securities subject to the notice of withdrawal are in book-entry form, the above notices
must also comply with the Applicable Procedures.

     (f) On or before 10:00 a.m. (New York City time) on the Optional Repurchase Date, the Company
shall deposit with the Paying Agent money sufficient to pay the aggregate Optional Repurchase Price
of the Securities to be purchased pursuant to this Section 3.02. If the Paying Agent holds, in
accordance with the terms of this Indenture, money sufficient to pay the Optional Repurchase Price
of such Securities on the Optional Repurchase Date, then on and after such date, such Securities
shall cease to be Outstanding and interest on such Securities shall cease to accrue, and all rights
of the Holder of such Securities shall terminate (other than the right to receive the Optional
Repurchase Price (and Additional Interest, if any) due on the Optional Repurchase Date). Such will
be the case whether or not book entry transfer of the Securities in book entry form is made and
whether or not Securities in certificated form, together with the necessary endorsements, are
delivered to the Paying Agent.

     (g) Notwithstanding the foregoing, no Securities may be purchased by the Company in accordance
with the provisions of this Section 3.02 if there has occurred and is continuing an Event of
Default with respect to the Securities (other than a default in the payment of the Optional
Repurchase Price).

     (h) If an Optional Repurchase Date falls after a Regular Record Date and on or before the
related Interest Payment Date, then interest on the Securities payable on such Interest Payment
Date will be payable to the Holders in whose names the Securities are registered at the close of
business on such Regular Record Date.

     (i) The Company may arrange for a third party to purchase any Securities for which it receives
a valid Optional Repurchase Notice that is not withdrawn, in the manner and otherwise in compliance
with the requirements set forth in this Section 3.02 applicable to the offer to repurchase the
Securities. If a third party purchases any Securities under these circumstances, then interest will
continue to accrue on those Securities and those Securities will continue to be Outstanding after
the Optional Repurchase Date and will be fungible with all other Securities then Outstanding. The
third party subsequently may resell those purchased Securities to other investors.

     Section 3.03. Repayment to the Company.

     To the extent that the aggregate amount of cash deposited by the Company pursuant to Section
3.01 or 3.02 exceeds the aggregate Fundamental Change Purchase Price or Optional Repurchase Price,
as applicable, of the Securities or portions thereof that the Company is

26

 

obligated to purchase, then promptly after the Fundamental Change Purchase Date or Optional
Repurchase Date, as applicable, the Trustee or a Paying Agent, as the case may be, shall return any
such excess cash to the Company.

     Section 3.04. Securities Purchased in Part.

     Any Security that is to be purchased only in part shall be surrendered at the office of a
Paying Agent, and promptly after the Fundamental Change Purchase Date or Optional Repurchase Date,
as applicable, the Company shall execute and the Trustee shall authenticate and deliver to the
Holder of such Security, without service charge, a new Security or Securities, of such authorized
denomination or denominations as may be requested by such Holder (which must be equal to $1,000
principal amount or any integral thereof), in aggregate principal amount equal to, and in exchange
for, the portion of the principal amount of the Security so surrendered that is not purchased.

     Section 3.05. Compliance with Securities Laws upon Purchase of Securities.

     In connection with any offer to purchase of Securities under Section 3.01 or 3.02, the Company
shall (a) comply with Rule 13e-4 and Rule 14e-1 (or any successor to either such Rule), and any
other tender offer rules, if applicable, under the Exchange Act, (b) file the related Schedule TO
(or any successor or similar schedule, form or report) if required under the Exchange Act, and (c)
otherwise comply with all federal and state securities laws in connection with such offer to
purchase or purchase of Securities, all so as to permit the rights of the Holders and obligations
of the Company under Sections 3.01 and 3.02 to be exercised in the time and in the manner specified
therein. To the extent that compliance with any such laws, rules and regulations would result in a
conflict with any of the terms hereof, this Indenture is hereby modified to the extent required for
the Company to comply with such laws, rules and regulations.

     Section 3.06. Purchase of Securities in Open Market.

     The Company may repurchase Securities in the open market, by tender at any price or by
negotiated transactions. The Company shall surrender any Security purchased by the Company to the
Trustee for cancellation. Any securities surrendered to the Trustee for cancellation may not be
reissued or resold by the Company and will be canceled promptly in accordance with Section 2.11.

ARTICLE 4

CONVERSION

     Section 4.01. Conversion Privilege and Conversion Rate.

     (a) Upon compliance with the provisions of this Article 4, at the option of the Holder
thereof, any Security or portion thereof that is an integral multiple of $1,000 principal amount
may be converted into the consideration provided for in Section 4.13 in the following
circumstances:

27

 

     (1) during any calendar quarter beginning after December 31, 2006, and only during such
calendar quarter, if, and only if, the Closing Sale Price per share of the Common Stock for
at least 20 Trading Days (whether or not consecutive) in the period of the 30 consecutive
Trading Days ending on the last Trading Day of the preceding calendar quarter was more than
125% of the Conversion Price in effect on the applicable Trading Day;

     (2) if the Company distributes to all holders of Common Stock rights entitling them to
purchase, for a period expiring within 60 days of the date of issuance, shares of Common
Stock at less than the per share Closing Sale Price of the Common Stock on the Trading Day
immediately preceding the declaration date of such distribution;

     (3) if the Company distributes to all holders of Common Stock assets, debt securities
or rights to purchase the Company’s securities, which distribution has a per share value, as
determined by the Company’s Board of Directors, exceeding 10% of the average of the Closing
Sale Prices of the Common Stock on the five consecutive Trading Days ending on the date
immediately preceding the declaration date of such distribution;

     (4) if an event specified in any of clauses (1) through (3) of the definition of
Fundamental Change occurs;

     (5) if an event specified in clause (4) of the definition of Fundamental Change occurs;

     (6) at any time after November 15, 2025, but prior to the close of business on the
second Business Day immediately preceding the Final Maturity Date;

     (7) during the five consecutive Trading Day period following any five consecutive
Trading Day period beginning after the date of this Indenture 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 4.01(e)(ii), for each day of that
period was less than 98% of the product of (i) the Closing Sale Price of the Common Stock
for each day in that period and (ii) the Applicable Conversion Rate;

     (8) a Holder may surrender for conversion any of the Securities called for redemption
at any time prior to the close of business on the third Business Day prior to the Redemption
Date, even if the Securities are not otherwise convertible at such time. The right to
convert Securities pursuant to this clause (8) will expire after the close of business on
the third Business Day prior to the Redemption Date unless the Company defaults in making
the payment due upon redemption; or

     (9) if the Company is a party to a consolidation, merger or binding share exchange
pursuant to which all of the Common Stock would be exchanged for cash, securities or other
property that is not otherwise a Fundamental Change (to the extent such transaction
constitutes a Fundamental Change, the Securities shall be convertible as described in clause
(4) above).

28

 

     (b) In the case of market price condition contemplated by clause (1) of Section 4.01(a), the
Board of Directors will make appropriate adjustments, in its good faith determination, to account
for any adjustment to the Conversion Rate that becomes effective, or any event requiring an
adjustment to the Conversion Rate where the Ex-Dividend Date occurs, during that 30 consecutive
Trading Day period.

     (c) In the case of a distribution contemplated by clauses (2) and (3) of Section 4.01(a), the
Company shall notify Holders and the Trustee at least 20 days prior to the

     Ex-Dividend Date for such distribution (the “Distribution Notice”). Once the Company has
given the Distribution Notice, Holders may surrender their Securities for conversion at any time
until the earlier of the close of business on the last Business Day preceding the Ex-Dividend Date
or the Company’s announcement that such distribution will not take place. In the event of a
distribution contemplated by clauses (2) and (3) of Section 4.01(a), Holders may not convert the
Securities if the Holders may otherwise participate in such distribution to the same extent as if
the Securities had been converted into shares of Common Stock immediately prior to the time at
which eligibility is determined for such transaction without converting their Securities, other
than through adjustments contemplated by Section 4.06. The Company will provide written notice to
the Conversion Agent as soon as reasonably practicable of any anticipated or actual event or
transaction that will cause or causes the Securities to become convertible pursuant to clause (2)
or (3) of Section 4.01(a).

     (d) (i) In the case of a transaction contemplated by clauses (4) or (5) of Section 4.01(a),
Holders may surrender Securities for conversion at any time from and including the Fundamental
Change Effective Date up to and including the close of business on the 30th Business Day
following the Fundamental Change Effective Date, subject to expiration of a Holder’s conversion
right with respect to any Securities submitted for repurchase. In the case of a transaction
contemplated by clause (4) of Section 4.01(a), the Company shall notify the Holders and Trustee as
promptly as practicable following the date the Company publicly announces such Fundamental Change,
but in no event will such public announcement be less than five Business Days prior to the
Fundamental Change Effective Date. In the case of a transaction contemplated by clause (5) of
Section 4.01(a), the Company shall notify the Holders within five days following the delisting.
The Company’s delivery of the notices contemplated by this Section 4.01(d) shall satisfy the
Company’s obligation to deliver a Company Notice required under Section 3.01(b) if it contains all
the information that would otherwise be required by such section.

     (ii) In the case of a transaction contemplated by clause (9) of Section 4.01(a), Holders may
surrender Securities for conversion at any time from and including the date that is 15 Business
Days prior to the anticipated effective time of the transaction up to and including the earlier of
five Business Days after the actual date of such transaction or the date that the Company announces
that such transaction will not take place. The Company shall notify Holders as promptly as
practicable following the date it publicly announces such transaction (but in no event less than 15
Business Days prior to the anticipated effective time of such transaction).

     (e) (i) For each calendar quarter of the Company, beginning with the calendar quarter ending
December 31, 2006, the Conversion Agent on behalf of the Company will

29

 

determine, on the first Business Day following the last Trading Day of such calendar quarter,
whether the Securities are convertible pursuant to clause (1) of Section 4.01(a), and, if so, will
notify the Company and the Trustee in writing, to the extent the Trustee is not also serving as the
Conversion Agent. Upon request of the Conversion Agent, the Company shall provide, or cause to be
provided to, the Conversion Agent the Closing Sale Price of the Common Stock for the 30 consecutive
Trading Days ending on the last Trading Day of the preceding calendar quarter.

     (ii) The Trustee shall have no obligation to determine the Trading Price of the Securities and
whether the Securities are convertible pursuant to clause (7) of Section 4.01(a) unless the Company
requests such determination, and the Company shall have no obligation to make such request unless a
Holder of Securities provides the Company with reasonable evidence that the Trading Price per
$1,000 principal amount of Securities would be less than 98% of the product of the Closing Sale
Price of the Common Stock and the Applicable Conversion Rate over the relevant period. At such
time, 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 per
$1,000 principal amount of the Securities is greater than or equal to 98% of the product of the
Closing Sale Price of the Common Stock and the Applicable Conversion Rate.

     (f) If a Security is submitted or presented for purchase upon a Fundamental Change or an
Optional Repurchase Date pursuant to Article 3, such conversion right shall terminate at the close
of business on the Business Day immediately preceding the Fundamental Change Purchase Date or
Optional Repurchase Date, as the case may be, for such Security (unless the Company shall fail to
make the Fundamental Change Purchase Price or Optional Repurchase Price payment, as the case may
be, when due in accordance with Article 3, in which case the conversion right shall terminate at
the close of business on the date such failure is cured and such Security is redeemed or purchased,
as the case may be). Securities in respect of which a Fundamental Change Purchase Notice or an
Optional Repurchase Notice has been delivered may not be surrendered for conversion pursuant to
this Article 4 prior to a valid withdrawal of such Fundamental Change Purchase Notice or Optional
Repurchase Notice, as the case may be, in accordance with the provisions of Article 3.

     (g) Provisions of this Indenture that apply to conversion of all of a Security also apply to
conversion of a portion of a Security.

     (h) If a Fundamental Change occurs prior to November 21, 2013 as a result of a transaction
specified in any of clauses (1) through (4) of the definition thereof, and a Holder elects to
convert its Securities in connection with such Fundamental Change, then the Conversion Rate per
$1,000 principal amount of Securities otherwise in effect in respect of Securities that are
converted shall be increased by a number of additional shares of Common Stock (the “Additional
Fundamental Change Shares”) as described below. A conversion of Securities shall be deemed for
these purposes to be “in connection with” such a Fundamental Change if the notice of conversion of
the Securities is received by the Conversion Agent from and including the Fundamental Change
Effective Date up to and including the 30th Business Day following the Fundamental Change Effective
Date. The number of Additional Fundamental Change Shares shall be determined by reference to the
table below and is based on the Fundamental Change Effective Date and the price (the “Share Price”)
paid per share of Common

30

 

Stock in such transaction. If the holders of Common Stock receive only cash in the Fundamental
Change, the Share Price shall be the cash amount paid per share of Common Stock in connection with
the Fundamental Change. Otherwise, the Share Price shall be equal to the average Closing Sale
Prices of the Common Stock on the 10 consecutive Trading Days immediately preceding, but excluding,
the applicable Fundamental Change Effective Date.

     The Share Prices set forth in the first row of the table (i.e., the column headers) shall be
adjusted as of any date on which the Conversion Rate of the Securities is adjusted, other than as a
result of an adjustment of the Conversion Rate by virtue of the provisions of this Section 4.01(h).
The adjusted Share Prices shall equal the Share Prices applicable immediately prior to such
adjustment multiplied by a fraction, the numerator of which is the Conversion Rate immediately
prior to the adjustment giving rise to the Share Price adjustment and the denominator of which is
the Conversion Rate as so adjusted. In addition, the number of Additional Fundamental Change
Shares shall be subject to adjustment in the same manner as the Conversion Rate pursuant to Section
4.06 hereof.

     The following table sets forth the amount of Additional Fundamental Change Shares, if any, by
which the Applicable Conversion Rate per $1,000 principal amount of Securities will increase for
each Share Price and Fundamental Change Effective Date set forth below:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Effective Date	 	$33.49	 	$35.00	 	$40.00	 	$45.00	 	$50.00	 	$60.00	 	$70.00	 	$80.00	 	$90.00	 	$100.00	 	$110.00
	November 16,
2006
	 	 	6.89	 	 	 	6.32	 	 	 	4.87	 	 	 	3.86	 	 	 	3.14	 	 	 	2.21	 	 	 	1.65	 	 	 	1.28	 	 	 	1.03	 	 	 	0.85	 	 	 	0.70	 
	November 15, 2007
	 	 	6.89	 	 	 	6.24	 	 	 	4.72	 	 	 	3.68	 	 	 	2.95	 	 	 	2.03	 	 	 	1.49	 	 	 	1.15	 	 	 	0.92	 	 	 	0.75	 	 	 	0.62	 
	November 15, 2008
	 	 	6.89	 	 	 	6.12	 	 	 	4.52	 	 	 	3.45	 	 	 	2.72	 	 	 	1.81	 	 	 	1.30	 	 	 	0.99	 	 	 	0.79	 	 	 	0.64	 	 	 	0.53	 
	November 15, 2009
	 	 	6.89	 	 	 	6.01	 	 	 	4.31	 	 	 	3.19	 	 	 	2.44	 	 	 	1.55	 	 	 	1.08	 	 	 	0.81	 	 	 	0.64	 	 	 	0.52	 	 	 	0.43	 
	November 15, 2010
	 	 	6.89	 	 	 	5.88	 	 	 	4.04	 	 	 	2.87	 	 	 	2.10	 	 	 	1.24	 	 	 	0.82	 	 	 	0.60	 	 	 	0.47	 	 	 	0.38	 	 	 	0.32	 
	November 15, 2011
	 	 	6.89	 	 	 	5.76	 	 	 	3.74	 	 	 	2.44	 	 	 	1.66	 	 	 	0.86	 	 	 	0.52	 	 	 	0.37	 	 	 	0.29	 	 	 	0.24	 	 	 	0.20	 
	November 15, 2012
	 	 	6.89	 	 	 	5.59	 	 	 	3.26	 	 	 	1.86	 	 	 	1.06	 	 	 	0.37	 	 	 	0.18	 	 	 	0.12	 	 	 	0.10	 	 	 	0.08	 	 	 	0.07	 
	November 21, 2013
	 	 	6.89	 	 	 	5.50	 	 	 	2.55	 	 	 	1.01	 	 	 	0.09	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 

     If the Share Price or Fundamental Change Effective Date is not set forth on the table
above: (i) if the actual Share Price on the Fundamental Change Effective Date is between two Share
Prices on the table or the actual Fundamental Change Effective Date is between two dates on the
table, the amount of Additional Fundamental Change Shares will be determined by a straight-line
interpolation between the number of Additional Fundamental Change Shares set forth for the higher
and lower Share Price amounts and the two dates, as applicable, based on a 365-day year, (ii) if
the Share Price on the Fundamental Change Effective Date exceeds $110.00 per share of Common Stock,
subject to adjustment as set forth herein, no Additional Fundamental Change Shares will be issued
upon conversion, and (iii) if the Share Price on the Fundamental Change Effective Date is less than
$33.49 per share of Common Stock, subject to adjustment as set forth herein, no Additional
Fundamental Change Shares will be issued upon conversion.

     Notwithstanding the foregoing paragraph, in no event will the Conversion Rate exceed 29.8597
per $1,000 principal amount of Securities, subject to adjustment in the manner set forth in Section
4.06(a) hereof.

31

 

     (i) Except as set forth in Section 4.02(c), by delivering the amount of cash and/or the number
of shares of Common Stock issuable on conversion to the Trustee, the Company will be deemed to have
satisfied its obligation to pay the principal amount of the Securities so converted and its
obligation to pay accrued and unpaid interest, and Additional Interest, if any, attributable to the
period from the most recent Interest Payment Date through the Conversion Date (which amount will be
deemed paid in full rather than cancelled, extinguished or forfeited).

     Section 4.02. Conversion Procedure.

     (a) To convert a Security, a Holder must (1) complete and manually sign the conversion notice
on the back of the Security and deliver such notice to a Conversion Agent, (2) surrender the
Security to a Conversion Agent, (3) furnish appropriate endorsements and transfer documents if
required by a Conversion Agent, (4) pay all transfer or similar taxes, if required pursuant to
Section 4.04, and (5) pay an amount equal to the interest as required by Section 4.02(c). The date
on which the Holder satisfies all of those requirements is the “Conversion Date.” Anything herein
to the contrary notwithstanding, in the case of Global Securities, conversion notices may be
delivered and such Securities may be surrendered for conversion in accordance with the Applicable
Procedures as in effect from time to time.

     (b) The person in whose name the shares of Common Stock are issuable upon conversion shall be
deemed to be a Holder of record of such Common Stock on the later of (i) the Conversion Date, (ii)
the expiration of the period in which the Company may elect to deliver cash in lieu of shares of
common stock or (iii) if the Company elects to deliver cash in lieu of some, but not all, of such
shares of Common Stock, the date on which the amount of cash issuable per Security has been
determined; provided, however, that no surrender of a Security on any Conversion Date when the
stock transfer books of the Company shall be closed shall be effective to constitute the person or
persons entitled to receive the shares of Common Stock upon conversion as the record Holder or
Holders of such shares of Common Stock on such date, but such surrender shall be effective to
constitute the person or persons entitled to receive such shares of Common Stock as the record
Holder or Holders thereof for all purposes at the close of business on the next succeeding day on
which such stock transfer books are open; provided further that such conversion shall be at the
Conversion Rate in effect on the Conversion Date as if the stock transfer books of the Company had
not been closed. Upon conversion of a Security, such person shall no longer be a Holder of such
Security. Except as set forth in this Indenture, no payment or adjustment will be made for
dividends or distributions declared or made on shares of Common Stock issued upon conversion of a
Security prior to the issuance of such shares.

     (c) Holders of Securities surrendered for conversion (in whole or in part) during the period
from the close of business on any Regular Record Date to the opening of business on the next
succeeding Interest Payment Date will receive the semi-annual interest payable on such Securities
on the corresponding Interest Payment Date notwithstanding the conversion (such interest being
payable on the corresponding Interest Payment Date to the Holder of the Security as of the close of
business on the Regular Record Date). However, such Holders must deliver to the Conversion Agent
an amount in cash equivalent to such interest payment in order to convert their Securities;
provided, however, that no such payment shall be required to be made (1) if such Securities have
been called for redemption on a Redemption Date that is after such Regular Record Date and on or
prior to such Interest Payment Date, (2) if a Fundamental Change

32

 

Purchase Date has been scheduled that is after such Regular Record Date and on or prior to
such Interest Payment Date, or (3) with respect to overdue interest (including Additional
Interest), if any overdue interest exists at the time of conversion with respect to such
Securities. Except as otherwise provided in this Section 4.02(c), no payment or adjustment will be
made for accrued interest on a converted Security.

     (d) Subject to Section 4.02(c), nothing in this Section shall affect the right of a Holder in
whose name any Security is registered at the close of business on a Regular Record Date to receive
the interest payable on such Security on the related Interest Payment Date in accordance with the
terms of this Indenture, the Securities and the Registration Rights Agreement. If a Holder
converts more than one Security at the same time, the amount of cash to be paid and the number of
shares of Common Stock issuable upon the conversion, if any (and the amount of any cash in lieu of
fractional shares pursuant to Section 4.03), shall be based on the aggregate principal amount of
all Securities so converted.

     (e) In the case of any Security which is converted in part only, upon such conversion the
Company shall execute and the Trustee shall authenticate and deliver to the Holder thereof, without
service charge, a new Security or Securities of authorized denominations in an aggregate principal
amount equal to, and in exchange for, the unconverted portion of the principal amount of such
Security. A Security may be converted in part, but only if the principal amount of such part is an
integral multiple of $1,000 and the principal amount of such Security to remain outstanding after
such conversion is equal to $1,000 or any integral multiple of $1,000 in excess thereof.

     Section 4.03. Fractional Shares.

     The Company will not issue fractional shares of Common Stock upon conversion of Securities.
If more than one Security shall be surrendered for conversion at one time by the same Holder, the
number of full shares that shall be issuable upon conversion shall be computed on the basis of the
aggregate principal amount of the Securities (or specified portions thereof to the extent permitted
hereby) so surrendered. In lieu of any fractional shares, the Company will pay an amount in cash
based upon the Average Price.

     Section 4.04. Taxes on Conversion.

     If a Holder converts a Security and the Company elects to deliver a combination of cash and
Common Stock, the Company shall pay any documentary, stamp or similar issue or transfer tax due on
the issue or delivery of shares of Common Stock upon such conversion. The Company shall also pay
any such tax with respect to cash received in lieu of fractional shares. The Holder shall pay any
such tax which is due because the Holder requests the shares to be issued or delivered in a name
other than the Holder’s name, in which case the Holder shall pay that tax prior to receipt of such
Common Stock. The Conversion Agent may refuse to deliver the certificate representing the 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 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.

33

 

     Section 4.05. Company to Provide Stock.

     (a) The Company shall, prior to issuance of any Securities hereunder, and from time to time as
may be necessary, reserve, out of its authorized but unissued Common Stock, a sufficient number of
shares of Common Stock to permit the conversion of all Outstanding Securities into shares of Common
Stock.

     (b) All shares of Common Stock delivered upon conversion of the Securities shall be newly
issued shares, shall be duly authorized, validly issued, fully paid and nonassessable and shall be
free from preemptive or similar rights of any securityholder of the Company and free of any lien or
adverse claim as the result of any action by the Company.

     (c) The Company will endeavor promptly to comply with all federal and state securities laws
regulating the offer and delivery of shares of Common Stock upon conversion of Securities.

     Section 4.06. Adjustment of Conversion Rate.

     (a) The Company will adjust the Conversion Rate if the following events occur:

     (1) If the Company issues Common Stock as a dividend or distribution on the Common
Stock to all Holders of the Common Stock, or if the Company effects a share split or share
combination, the Conversion Rate will be adjusted based on the following formula:

	 	 	 	 	 
	CR1 = CR0 x

	 	OS1
	 	 
	 

	 	OS0	 	 

     where,

					
	CR0	 	=	 	the Conversion Rate in effect immediately prior to the Ex-Dividend Date for
such dividend or distribution, or in effect on the effective date of such share split
or share combination, as applicable;
	 	 	 	 	 
	CR1	 	=	 	the new Conversion Rate in effect immediately after the Ex-Dividend Date
for such dividend or distribution, or in effect on the effective date of such share
split or share combination, as applicable;
	 	 	 	 	 
	OS0	 	=	 	the number of shares of the Common Stock outstanding immediately prior to
the Ex-Dividend Date for such dividend or distribution, or outstanding on the effective
date of such share split or share combination, as applicable; and
	 	 	 	 	 
	OS1	 	=	 	the number of shares of the Common Stock outstanding immediately after the
Ex-Dividend Date for such dividend or distribution, or outstanding on the effective
date of such share split or share combination, as applicable.

Any adjustment made pursuant to this clause (1) shall become effective on the date that is
immediately after (x) the date fixed for the determination of shareholders entitled to

34

 

receive such dividend or other distribution or (y) the date on which such split or
combination becomes effective, as applicable. If any dividend or distribution described in
this clause (1) is declared but not so paid or made, the new Conversion Rate shall be
readjusted to the Conversion Rate that would then be in effect if the dividend or
distribution had not been declared.

     (2) If the Company issues to all holders of Common Stock any rights, warrants, options
or other securities entitling them for a period of not more than 45 days after the date of
issuance thereof to subscribe for or purchase shares of Common Stock, or issues to all
holders of Common Stock securities convertible into shares of Common Stock for a period of
not more than 45 days after the date of issuance thereof, in either case at an exercise
price per share of Common Stock or a conversion price per share of Common Stock less than
the Closing Sale Price of the Common Stock on the Business Day immediately preceding the
time of announcement of such issuance, the Conversion Rate will be adjusted based on the
following formula:

	 	 	 	 	 
	CR1 = CR0 x

	 	(OS0 + X)
	 	 
	 

	 	 	 	 
	 

	 	(OS0 + Y)	 	 

     where,

					
	CR0	 	=	 	the Conversion Rate in effect immediately prior to the Ex-Dividend Date for
such distribution;
	 	 	 	 	 
	CR1	 	=	 	the Conversion Rate in effect immediately after the Ex-Dividend Date for
such distribution;
	 	 	 	 	 
	OS0	 	=	 	the number of shares of the Common Stock outstanding immediately prior to
the Ex-Dividend Date for the distribution;
	 	 	 	 	 
	X	 	=	 	the total number of shares of the Common Stock issuable pursuant to such
rights, warrants, options, other securities or convertible securities; and
	 	 	 	 	 
	Y	 	=	 	the number of shares of the Common Stock equal to the quotient of (A) the
aggregate price payable to exercise such rights, warrants, options, other securities or
convertible securities divided by (B) the average of the Closing Sale Prices of the
Common Stock for the 10 consecutive Trading Days ending on the Business Day immediately
preceding the date of announcement for the issuance, the rights, warrants, options,
other securities or convertible securities.

For purposes of this paragraph (2), in determining whether any rights, warrants, options,
other securities or convertible securities entitle the holders to subscribe for or purchase,
or exercise a conversion right for, shares of Common Stock at less than the applicable
Closing Sale Price of the Common Stock, and in determining the aggregate exercise or
conversion price payable for such Common Stock, there shall be taken into account any
consideration received by the Company for such rights, warrants, options, other securities
or convertible securities and any amount payable on exercise or conversion thereof, with

35

 

the value of such consideration, if other than cash, to be determined by the Board of
Directors of the Company. If any right, warrant, option, other security or convertible
security described in this clause (2) is not exercised or converted prior to the expiration
of the exercisability or convertibility thereof, the new Conversion Rate shall be readjusted
to the Conversion Rate that would then be in effect if such right, warrant, option, other
security or convertible security had not been so issued.

     (3) If the Company distributes shares of its capital stock, evidences of indebtedness
or other assets or property to all holders of the Common Stock, excluding:

     (A) dividends, distributions, rights, warrants, options, other securities or
convertible securities referred to in clause (1) or (2) above;

     (B) dividends or distributions paid exclusively in cash; and

     (C) Spin-Offs described below in this clause (3),

then the Conversion Rate will be adjusted based on the following formula:

	 	 	 	 	 
	CR1 = CR0 x

	 	SP0
	 	 
	 

	 	 	 	 
	 

	 	(SP0 — FMV)	 	 

     where,

					
	CR0	 	=	 	the Conversion Rate in effect immediately prior to the Ex-Dividend Date for
such distribution;
	 	 	 	 	 
	CR1	 	=	 	the new Conversion Rate in effect immediately after the Ex-Dividend Date
for such distribution;
	 	 	 	 	 
	SP0	 	=	 	the average of the Closing Sale Prices of the Common Stock for the 10
consecutive Trading Days prior to the Business Day immediately preceding the earlier of
the record date or the Ex-Dividend Date for such distribution; and
	 	 	 	 	 
	FMV	 	=	 	the fair market value (as determined in good faith by the Company’s Board of
Directors) of the shares of capital stock, evidences of indebtedness, assets or
property distributed with respect to each outstanding share of Common Stock on the
earlier of the record date or the Ex-Dividend Date for such distribution.

An adjustment to the Conversion Rate made pursuant to the immediately preceding paragraph
shall become effective on the day immediately after the date fixed for the determination of
holders of Common Stock entitled to receive such distribution.

     If the Company distributes to all holders of the Common Stock, capital stock of any
class or series, or similar equity interest, of or relating to a Subsidiary or other of the
Company’s business units (a “Spin-Off”), the Conversion Rate in effect immediately before
the close of business on the date fixed for determination of holders of the

36

 

Common Stock entitled to receive such distribution will be adjusted based on the following
formula:

	 	 	 	 	 
	CR1 = CR0 x

	 	(FMV0 + MP0)
	 	 
	 

	 	 	 	 
	 

	 	MP0	 	 

     where,

					
	CR0	 	=	 	the Conversion Rate in effect immediately prior to the 10th Trading Day
immediately following and including the effective date of the Spin-Off;
	 	 	 	 	 
	CR1	 	=	 	the new Conversion Rate immediately after the 10th Trading Day immediately
following, and including, the effective date of the Spin-Off;
	 	 	 	 	 
	FMV0	 	=	 	the average of the Closing Sale Prices of the capital stock or similar
equity interest distributed to Holders of the Common Stock applicable to one share of
the Common Stock over the first 10 consecutive Trading Days after the effective date of
the Spin-Off; and
	 	 	 	 	 
	MP0	 	=	 	the average of the Closing Sale Price of the Common Stock over the first 10
consecutive Trading Days after the effective date of the Spin-Off.

An adjustment to the Conversion Rate made pursuant to the immediately preceding paragraph
will occur on the 11th Trading Day from and including the effective date of the
Spin-Off. If any such dividend or distribution described in this paragraph (3) is declared
but not paid or made, the new Conversion Rate shall be readjusted to be the Conversion Rate
that would then be in effect if such dividend or distribution had not been declared.

     (4) If the Company makes any cash dividend or distribution in respect of any of the
Company’s quarterly fiscal periods (without regard to when paid) to all holders of Common
Stock, the Conversion Rate will be adjusted based on the following formula:

	 	 	 	 	 
	CR1 = CR0 x

	 	SP0
	 	 
	 

	 	 	 	 
	 

	 	SP0 — C	 	 

     where,

					
	CR0	 	=	 	the Conversion Rate in effect immediately prior to the Ex-Dividend Date for
such distribution;
	 	 	 	 	 
	CR1	 	=	 	the new Conversion Rate immediately after the Ex-Dividend Date for such
distribution;
	 	 	 	 	 
	SP0	 	=	 	the average of the Closing Sale Prices of Common Stock for the 10
consecutive Trading Days prior to the Business Day immediately preceding the earlier of
the record date or the day prior to the Ex Dividend Date for such distribution; and

37

 

					
	C	 	=	 	the amount in cash per share that the Company distributes to Holders of the
Common Stock in respect of such quarterly fiscal period.

An adjustment to the Conversion Rate made pursuant to this paragraph (4) shall become
effective on the date immediately after the date fixed for the determination of Holders of
Common Stock entitled to receive such dividend or distribution. If any dividend or
distribution described in this paragraph (4) is declared but not so paid or made, the new
Conversion Rate shall be readjusted to the Conversion Rate that would then be in effect if
such dividend or distribution had not been declared.

     (5) If the Company or any of its Subsidiaries makes a payment in respect of a tender
offer or exchange offer for the Common Stock to the extent that the cash and value of any
other consideration included in the payment per share of the Common Stock exceeds the
Closing Sale Price of the Common Stock on the Trading Day next succeeding the last date on
which tenders or exchanges may be made pursuant to such tender or exchange offer (the
“Expiration Time”), the Conversion Rate will be adjusted based on the following formula:

	 	 	 	 	 
	CR1 = CR0 x

	 	AC + (SP1 x OS1)
	 	 
	 

	 	 	 	 
	 

	 	(SP1 x OS0)	 	 

     where,

					
	CR0	 	=	 	the Conversion Rate in effect immediately prior to the Expiration Time;
	 	 	 	 	 
	CR1	 	=	 	the new Conversion Rate immediately following the Expiration Time;
	 	 	 	 	 
	AC	 	=	 	the aggregate value of all cash and any other consideration (as determined by
the Company’s Board of Directors) paid or payable for Common Stock purchased in such
tender or exchange offer;
	 	 	 	 	 
	OS0	 	=	 	the number of shares of the Common Stock outstanding immediately prior to
the Expiration Time;
	 	 	 	 	 
	OS1	 	=	 	the number of shares of the Common Stock outstanding immediately after the
Expiration Time (after giving effect to the purchase or exchange of shares pursuant to
such tender or exchange offer); and
	 	 	 	 	 
	SP1	 	=	 	the average of the Closing Sale Prices of the Common Stock for the 10
consecutive Trading Days commencing on the Trading Day next succeeding the Expiration
Time.

If the application of the foregoing formula would result in a decrease in the Conversion
Rate, no adjustment to the Conversion Rate will be made.

     Any adjustment to the Conversion Rate made pursuant to this paragraph (5) shall become
effective on the date immediately following the Expiration Time. If the Company or one of
its Subsidiaries is obligated to purchase shares of Common Stock

38

 

pursuant to any such tender or exchange offer but is permanently prevented by applicable law
from effecting any such purchase or all such purchases are rescinded, the new Conversion
Rate shall be readjusted to be the Conversion Rate that would be in effect if such tender or
exchange offer had not been made.

     (b) In addition to the adjustments pursuant to Section 4.06(a), the Company may in its sole
discretion increase the Conversion Rate as the Company’s Board of Directors deems advisable to
avoid or diminish any income tax to Holders of the Common Stock resulting from any dividend or
distribution of capital stock (or rights to acquire shares of Common Stock) or from any event
treated as such for income tax purposes. The Company may also, from time to time, to the extent
permitted by applicable law, increase the Conversion Rate by any amount for any period if the
Company’s Board of Directors has determined that such increase would be in the Company’s best
interests. If the Company’s Board of Directors makes such determination, it will be conclusive and
the Company shall mail to Holders a notice of the increased Conversion Rate and the period during
which it will be in effect at least 15 days prior to the date the increased Conversion Rate takes
effect in accordance with applicable law.

     (c) For purposes of this Section 4.06, “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 or converted into any combination of cash, securities or other property, the
date fixed for determination of shareholders entitled to receive such cash, security or other
property (whether or not such date is fixed by the Board of Directors or by statute, contract or
otherwise).

     (d) If the Company has in effect a rights plan while any Securities remain Outstanding,
Holders of Securities will receive, upon a conversion of Securities in respect of which the Company
has elected to deliver Net Shares, in addition to such Net Shares, rights under the Company’s
shareholder rights agreement unless, prior to conversion, the rights have expired, terminated or
been redeemed or unless the rights have separated from the Common Stock. If the rights provided
for in the rights plan adopted by the Company have separated from the Common Stock in accordance
with the provisions of the applicable shareholder rights agreement so that Holders of Securities
would not be entitled to receive any rights in respect of Common Stock that the Company elects to
deliver as Net Shares upon conversion of Securities, the Conversion Rate will be adjusted at the
time of separation as if the Company had distributed to all holders of Common Stock, evidences of
indebtedness or other assets or property pursuant to Section 4.06(a)(3) above, subject to
readjustment upon the subsequent expiration, termination or redemption of the rights. In lieu of
any such adjustment, the Company may amend such applicable shareholder rights agreement to provide
that upon a conversion of Securities the Holders will receive, in addition to shares of Common
Stock that the Company elects to deliver as Net Shares upon such conversion, the rights which would
have attached to such Common Stock if the rights had not become separated from the Common Stock
under such applicable shareholder rights agreement.

     (e) Notwithstanding the provisions set forth in Section 4.06(a), in no event shall the
Conversion Rate exceed 29.8597 per $1,000 principal amount of Securities as a result of an

39

 

adjustment pursuant to clause (4) or (5) of Section 4.06(a), subject to adjustment in the
manner set forth in clauses (1) through (3) of Section 4.06(a).

     Section 4.07. No Adjustment.

     (a) No adjustment in the Conversion Rate shall be required if Holders may participate in the
transactions set forth in Section 4.06 above (to the same extent as if the Securities had been
converted into Common Stock immediately prior to the time at which eligibility is determined for
such transactions) without converting the Securities held by such Holders.

     (b) The Conversion Rate will not be adjusted except as specifically set forth in Section 4.06
and Section 4.01(h). Without limiting the foregoing, the Conversion Rate will not be adjusted for:

     (1) the issuance of any Common Stock pursuant to any present or future plan providing
for the reinvestment of dividends or interest payable on the Company’s securities and the
investment of additional optional amounts in shares of the Company’s common stock under any
plan;

     (2) the issuance of any shares of Common Stock or options or rights to purchase those
shares pursuant to any present or future employee, director, trustee or consultant benefit
plan, employee agreement or arrangement or program of the Company;

     (3) the issuance of any shares of Common Stock pursuant to any option, warrant, right,
or exercisable, exchangeable or convertible security outstanding as of the date the
Securities were first issued;

     (4) a change in the par value of the Common Stock;

     (5) accumulated and unpaid dividends or distributions; and

     (6) as a result of a tender offer solely to holders of less than 100 shares of the
Common Stock.

     (c) No adjustment in the Conversion Rate shall be required unless such adjustment would
require an increase or decrease of at least 1% in the Conversion Rate as last adjusted; provided,
however, that any adjustments which would be required to be made but for this Section 4.07(c) shall
be carried forward and taken into account in any subsequent adjustment. All required calculations
under this Article 4 shall be made to the nearest cent or to the nearest one- thousandth of a
share, as the case may be, with one half cent and 0.0005 of a share, respectively, being rounded
upward. Notwithstanding the foregoing, if Securities are called for redemption, all adjustments
not previously made will be made on the applicable Redemption Date.

     Section 4.08. Notice of Adjustment.

     Whenever the Conversion Rate is required to be adjusted pursuant to this Indenture, the
Company shall promptly mail to Holders a notice of the adjustment and file with the Trustee an
Officers’ Certificate briefly stating the facts requiring the adjustment and the manner of

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computing it. Failure to mail such notice or any defect therein shall not affect the validity
of any such adjustment. Unless and until the Trustee shall receive an Officers’ Certificate
setting forth an adjustment of the Conversion Rate, the Trustee may assume without inquiry that the
Conversion Rate has not been adjusted and that the last Conversion Rate of which it has knowledge
remains in effect.

     Section 4.09. Notice of Certain Transactions.

     In the event that there is a dissolution or liquidation of the Company, the Company shall mail
to Holders and file with the Trustee a notice stating the proposed effective date. The Company
shall mail such notice at least 10 days before such proposed effective date. Failure to mail such
notice or any defect therein shall not affect the validity of any transaction referred to in this
Section 4.09.

     Section 4.10. Effect of Consolidation, Merger or Binding Share Exchange.

     In the case of a transaction contemplated by clauses (4) or (9) of Section 4.01(a), as
applicable, if the Company is a party to a consolidation, merger or binding share exchange pursuant
to which all shares of the Common Stock are exchanged for cash, securities or other property, then
at the effective time of the transaction any conversion of Securities and the Conversion Value will
be based on the kind and amount of cash, securities or other property that a Holder would have
received if such Holder had converted its Securities into Common Stock immediately prior to the
effective time of the transaction. For purposes of the foregoing, where a consolidation, merger or
binding share exchange involves a transaction that causes Common Stock to be converted into the
right to receive more than a single type of consideration based upon any form of shareholder
election, such consideration will be deemed to be the weighted average of the amounts and types of
consideration that the holders of Common Stock who affirmatively made such an election received in
such transaction or as a result of such event.

     Section 4.11. Withholding.

     Upon surrender of a Security for conversion, the Holder shall deliver to the Company cash
equal to the amount that the Company is required to deduct and withhold under applicable law in
connection with such conversion; provided, however, that if the Holder does not deliver such cash,
the Company may deduct and withhold from the consideration otherwise deliverable to such Holder the
amount required to be deducted and withheld under applicable law.

     Section 4.12. Trustee’s Disclaimer.

     The Trustee shall have no duty to determine when an adjustment under this Article 4 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, 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 4.08. The Trustee makes no
representation as to the validity or value of any securities or assets issued upon conversion of
Securities.

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     Section 4.13. Conversion Settlement.

     (a) Upon a conversion of Securities, the Company shall deliver, in respect of each $1,000
principal amount of Securities tendered for conversion:

     (1) cash in an amount (the “Principal Return”) equal to the lesser of (1) the principal
amount of the Securities surrendered for conversion and (2) the Conversion Value; and

     (2) if the Conversion Value is greater than the Principal Return, an amount (the “Net
Amount”) in cash or Common Stock, at the Company’s option (as provided in paragraph (b)
below) with an aggregate value equal to the difference between the Conversion Value and the
Principal Return.

     (b) The Company may elect to deliver any portion of the Net Amount in cash (the “Net Cash
Amount”) or Common Stock, and any portion of the Net Amount the Company elects to deliver in Common
Stock (the “Net Shares”) will be the sum of the Daily Share Amounts for each Trading Day during the
Applicable Conversion Period. Prior to the close of business on the second Trading Day following
the date on which Securities are tendered for conversion, the Company shall inform Holders of such
Securities of its election to pay cash for all or a portion of the Net Amount and, if applicable,
the portion of the Net Amount that will be paid in cash and the portion that will be delivered in
the form of Net Shares.

     (c) The Company shall determine the Conversion Value, Principal Return, Net Amount, Net Cash
Amount, Daily Share Amount and Average Price promptly at the end of the applicable Conversion
Reference Period. For the purposes of Sections 4.13(a) and (b), in the event that any of
Conversion Value, Principal Return, Net Amount, Net Cash Amount, Daily Share Amount and Average
Price cannot be determined for all portions of the Conversion Reference Period, the Company’s Board
of Directors shall in good faith determine the values necessary to calculate the Conversion Value,
Principal Return, Net Amount, Net Cash Amount, Daily Share Amount and Average Price, as applicable.

     (d) Upon the conversion of a Security, the Company shall pay the Principal Return and cash in
lieu of fractional shares, and deliver Net Shares or pay the Net Cash Amount, as applicable, as
promptly as practicable but in no event later than the third Business Day following the last
trading day of the Applicable Conversion Period.

ARTICLE 5

COVENANTS

     Section 5.01. Payment of Securities.

     (a) 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. A payment of principal or interest or
Additional Interest, if any, shall be considered paid on the date it is due if the Paying Agent
(other than the Company) holds by 10:00 a.m., New York City time, on that date money, deposited by
or on behalf of the Company sufficient to make the payment. Subject to Section 4.02, accrued and
unpaid interest on any Security that is payable, and is punctually paid or duly provided for, on
any Interest Payment Date shall be paid to the Person in whose name

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that Security is registered at the close of business on the Regular Record Date for such
interest at the office or agency of the Company maintained for such purpose. Principal, interest,
the Fundamental Change Purchase Price, the Optional Repurchase Price, the Redemption Price and
Additional Interest, if any, in each case if payable, shall be considered paid on the applicable
date due if on such date the Trustee or the Paying Agent holds, in accordance with this Indenture,
money sufficient to pay all such amounts then due. The Company shall, to the fullest extent
permitted by law, pay interest in immediately available funds on overdue principal amount and
interest at the annual rate borne by the Securities compounded semiannually, which interest shall
accrue from the date such overdue amount was originally due to the date payment of such amount,
including interest thereon, has been made or duly provided for. All such interest shall be payable
on demand.

     (b) Payment of the principal of and interest, if any, on the Securities shall be made at the
office or agency of the Company maintained for that purpose in the Borough of Manhattan, The City
of New York (which shall initially be at the address set forth in Section 2.03(c)) or at the
Corporate Trust Office of the Trustee in such coin or currency of the United States of America as
at the time of payment is legal tender for payment of public and private debts; provided, however,
that at the option of the Company payment of interest may be made by check mailed to the address of
the Person entitled thereto as such address appears in the Register; provided further that a Holder
with an aggregate principal amount in excess of $2,000,000 will be paid by wire transfer in
immediately available funds at the election of such Holder if such Holder has provided wire
transfer instructions to the Trustee at least 10 Business Days prior to the payment date. Any wire
transfer instructions received by the Trustee will remain in effect until revoked by the Holder.

     Section 5.02. SEC and Other Reports.

     (a) The Company shall deliver to the Trustee, upon request, within 15 days after the Company
is required to file the same with the SEC, copies of the annual reports and of the information,
documents and other reports (or copies of such portions of any of the foregoing as the SEC may
prescribe) which the Company is required to file with the SEC pursuant to Section 13 or 15(d) of
the Exchange Act. If the Company is not required to file information, documents or reports
pursuant to either of those sections, then it will provide to the Trustee upon request and to the
SEC such reports as may be prescribed by the SEC at such time.

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

     Section 5.03. Compliance Certificates.

     The Company shall deliver to the Trustee, within 120 days after the end of each fiscal year of
the Company (beginning with the fiscal year ending on December 31, 2006), an Officers’ Certificate
(signed by one of the Chairman of the Board, the Chief Executive Officer, the President, any Vice
President, the Chief Operating Officer, the Chief Financial Officer or the

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Chief Accounting Officer of the Company) as to the signer’s knowledge after due inquiry of the
Company’s compliance with all terms, conditions and covenants on its part contained in this
Indenture and stating whether or not the signer knows of any Default or Event of Default. If such
signer knows of such a Default or Event of Default, the Officers’ Certificate shall describe the
Default or Event of Default and the efforts to remedy the same. For the purposes of this Section
5.03, compliance shall be determined without regard to any grace period or requirement of notice
provided pursuant to the terms of this Indenture.

     Section 5.04. Further Instruments and Acts.

     Upon request of the Trustee, the Company will execute and deliver such further instruments and
do such further acts as may be reasonably necessary or proper to carry out more effectively the
purposes of this Indenture.

     Section 5.05. Maintenance of Corporate Existence.

     Subject to Article 6, the Company will do or cause to be done all things necessary to preserve
and keep in full force and effect its corporate existence.

     Section 5.06. Rule 144A Information Requirement.

     If at any time the Company is not subject to the reporting requirements of the Exchange Act,
the Company shall promptly furnish to the Holders, beneficial owners and prospective purchasers of
the Securities or underlying shares of Common Stock, upon their request, the information required
to be delivered pursuant to Rule 144A(d)(4) of the Securities Act to facilitate the resale of those
Securities or shares of Common Stock pursuant to Rule 144A.

     Section 5.07. Stay, Extension and Usury Laws.

     The Company covenants (to the extent that it may lawfully do so) that it shall not at any time
insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any
stay, extension or usury law or other law which would prohibit or forgive the Company from paying
all or any portion of the principal of or accrued but unpaid interest or 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 will not, by resort to any such law, hinder, delay or impede the execution of
any power herein granted to the Trustee, but will suffer and permit the execution of every such
power as though no such law had been enacted.

     Section 5.08. Payment of Additional Interest.

     If Additional Interest is payable by the Company pursuant to the Registration Rights
Agreement, the Company shall deliver to the Trustee an Officers’ Certificate to that effect stating
(i) the amount of such Additional Interest that is payable, (ii) the reason why such Additional
Interest is payable and (iii) the date on which such Additional Interest is payable. Unless and
until a Trust Officer of the Trustee receives such a certificate, the Trustee may assume without
inquiry that no such Additional Interest is payable. If the Company has paid Additional Interest

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directly to the Persons entitled to such Additional Interest, the Company shall deliver to the
Trustee a certificate setting forth the particulars of such payment.

     Section 5.09. Maintenance of Office or Agency.

     The Company will maintain an office or agency of the Trustee, Registrar and Paying Agent where
securities may be presented or surrendered for payment, where Securities may be surrendered for
registration of transfer, purchase or redemption and where notices and demands to or upon the
Company in respect of the Securities and this Indenture may be served. The Corporate Trust Office
shall initially be 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 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.

     The Company may also from time to time designate one or more other offices or agencies where
the Securities may be presented or surrendered for any or all such purposes and may from time to
time rescind such designations; provided, however, that no such designation or rescission shall in
any manner relieve the Company of its obligation to maintain an office or agency.

ARTICLE 6

CONSOLIDATION; MERGER; CONVEYANCE; TRANSFER OR LEASE

     Section 6.01. Company May Consolidate, Etc., Only on Certain Terms.

     The Company shall not, in any transaction or series of related transactions, consolidate with,
or sell, lease, assign, transfer or otherwise convey all or substantially all of its assets to, or
merge with or into, any other Person, unless:

     (1) either the Company shall be the continuing corporation, or the successor person, if
other than the Company, formed by or resulting from any consolidation or merger or which
shall have received the transfer of all or substantially all of its assets is a corporation
organized and existing under the laws of the United States of America, any state thereof or
the District of Columbia and shall expressly assume, by supplemental indenture executed by
the successor corporation and delivered to the Trustee, the due and punctual payment of the
principal of, and premium, if any, and interest, if any, on and all Additional Interest, if
any, payable in respect of all of the outstanding Securities issued under this Indenture and
the due and punctual performance and observance of all of the other covenants and conditions
contained in the Securities and this Indenture to be performed or observed by the Company;

     (2) immediately after giving effect to the transaction, no Event of Default, and no
event which, after notice or the lapse of time or both, would become an Event of Default,
shall have occurred and be continuing; and

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     (3) the Company shall have, at or prior to the effective date of such consolidation,
merger or transfer, delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that such consolidation, merger or transfer complies with this Article
6.01 and, if a supplemental indenture is required in connection with such transaction, such
supplemental indenture complies with this Article, and that all conditions precedent herein
provided for relating to such transaction have been complied with.

     Section 6.02. Successor Substituted.

     Upon any consolidation of the Company with, or merger of the Company into, any other Person or
any conveyance, transfer or lease substantially as an entity, of the properties and assets of the
Company and its Subsidiaries, taken as a whole, in accordance with Section 6.01, 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, and except for obligations the predecessor Person may have under a supplemental indenture,
the predecessor Person shall be released from all obligations and covenants under this Indenture
and the Securities.

ARTICLE 7

DEFAULT AND REMEDIES

     Section 7.01. Events of Default.

     (a) The following events are “Events of Default”:

     (1) a default for 30 days in the payment of any interest on or any Additional Interest
payable in respect of the Securities;

     (2) a default in the payment of any principal of or premium, if any, on, Securities,
whether on the Final Maturity Date or any earlier date of redemption or repurchase or
otherwise;

     (3) a default in the delivery when due of the Conversion Value, on the terms set forth
in this Indenture and the Securities, upon exercise of a Holder’s conversion right in
accordance with this Indenture and the continuation of such Default for 10 days;

     (4) the Company’s failure to provide the Company Notice when required under Section
3.01(b) hereof;

     (5) a default in the performance, or breach, of any other covenant or warranty
contained in the Securities or this Indenture, continued for 30 days after written notice as
provided in this Indenture; provided, however, that if such default pertains to the failure
to deliver copies of annual reports and the information, documents and other reports after
the Company is required to file them with the SEC, such default must have been

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continued for 90 days after written notice is provided to the Company by the Trustee or
the Holders of not less than 25% in principal amount of the outstanding Securities;

     (6) a default under any bond, note, debenture or other evidence of indebtedness of the
Company or any of its Subsidiaries, including an event of default with respect of any other
series of debt securities, or under any mortgage, indenture or other instrument under which
there may be issued or by which there may be secured or evidenced any indebtedness of the
Company or any of its Subsidiaries which results in the acceleration of such indebtedness in
an aggregate principal amount exceeding $30,000,000 or which constitutes a failure to pay at
maturity or other scheduled payment date (after expiration of any applicable grace period)
such indebtedness in an aggregate principal amount exceeding $30,000,000, but only if such
indebtedness is not discharged or such acceleration is not rescinded or annulled within 20
days after notice to the Company by the Trustee or to the Company and the Trustee by the
Holders of at least 20% in aggregate principal amount of the Securities;

     (7) one or more final judgments, orders or decrees of any court or regulatory or
administrative agency for the payment of money in excess of $30,000,000, either individually
or in the aggregate (exclusive of any portion of any such payment covered by insurance, if
and to the extent the insurer has acknowledged in writing its liability therefor), shall be
rendered against the Company or any Significant Subsidiary or any of their respective
properties and shall not be discharged or fully bonded and either (a) any creditor shall
have commenced an enforcement proceeding upon such judgment, order or decree or (b) there
shall have been a period of 60 consecutive days during which a stay of enforcement of such
judgment or order, by reason of an appeal or otherwise, shall not be in effect;

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

     (A) commences as a debtor a voluntary case or proceeding;

     (B) 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;

     (C) consents to the appointment of a Receiver of it or for all or substantially
all of its property;

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

     (E) files a petition in bankruptcy or answer or consent seeking reorganization
or relief; or

     (F) consents to the filing of such a petition or the appointment of or taking
possession by a Receiver; and

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

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     (A) grants relief against the Company or any Significant Subsidiary of the
Company in an involuntary case or proceeding or adjudicates the Company or any
Significant Subsidiary of the Company insolvent or bankrupt;

     (B) appoints a Receiver of the Company or any Significant Subsidiary of the
Company or for all or substantially all of the property of the Company or any
Significant Subsidiary of the Company; or

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

and in each case 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 “Receiver” means any
receiver, trustee, assignee, liquidator, sequestrator or similar official under any Bankruptcy Law.

     (b) The Company will deliver to the Trustee, within five Business Days after becoming aware of
the occurrence of a Default or Event of Default, written notice thereof.

     Section 7.02. Acceleration.

     If an Event of Default (other than an Event of Default specified in clause (8) or (9) of
Section 7.01(a)) 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, declare the principal amount and accrued and unpaid
interest, if any, and accrued and unpaid Additional Interest, if any, through the date of
declaration on all the Securities to be immediately due and payable. Upon such a declaration, such
principal amount and such accrued and unpaid interest, if any, and such accrued and unpaid
Additional Interest, if any, shall be due and payable immediately. If an Event of Default
specified in Section 7.01(a)(8) or (9) occurs in respect of the Company or any Significant
Subsidiary and is continuing, the principal amount and accrued but unpaid interest, if any, and
accrued and unpaid Additional Interest, if any, on all the Securities shall become and be
immediately due and payable without any declaration or other act on the part of the Trustee or any
Holders of Securities. At any time after such a declaration of acceleration with respect to the
Securities has been made and before a judgment or decree for payment of the money due has been
obtained by the Trustee as hereinafter in this Article provided, the Holders of not less than a
majority in principal amount of the Securities, by written notice to the Company and the Trustee,
may rescind and annul such declaration and its consequences if:

     (1) the Company has paid or deposited with the Trustee a sum sufficient to pay in the
currency in which the Securities are payable:

     (A) all overdue installments of interest on and any Additional Interest payable
in respect of all outstanding Securities,

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     (B) the principal of (and premium, if any, on) any outstanding Securities which
have become due otherwise than by such declaration of acceleration and interest
thereon at the rate or rates borne by or provided for in the Securities,

     (C) to the extent that payment of such interest is lawful, interest upon
overdue installments of interest and any Additional Interest at the rate or rates
borne by or provided for in the Securities, and

     (D) all sums paid or advanced by the Trustee hereunder and the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel; and

     (2) all Events of Default with respect to the Securities, other than the nonpayment of
the principal of (or premium, if any) or interest on the Securities which have become due
solely by such declaration of acceleration, have been cured or waived as provided in Section
7.04.

     Section 7.03. Other Remedies.

     (a) 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 payment of
the principal amount and accrued and unpaid interest, if any, and accrued and unpaid Additional
Interest, if any, on the Securities or to enforce the performance of any provision of the
Securities or this Indenture.

     (b) 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 Holder
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 applicable
law.

     Section 7.04. Waiver of Defaults and Events of Default.

     Subject to Sections 7.07 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 Default or Event of
Default and its consequences, except an uncured Default or Event of Default in the payment of the
principal of, premium, if any, or any accrued but unpaid interest or Additional Interest, if any,
on any Security, an uncured failure by the Company to convert any Securities into Common Stock and
cash, as applicable, or any Default or Event of Default in respect of any provision of this
Indenture or the Securities which, under Section 10.02, cannot be modified or amended without the
consent of the Holder of each Security affected. When a Default or Event of Default is waived, it
is cured and ceases to exist.

     Section 7.05. Control by Majority.

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     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. 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 satisfactory to it;
provided, however, that the Trustee may take any other action deemed proper by the Trustee which is
not inconsistent with such direction.

     Section 7.06. Limitations on Suits.

     (a) A Holder may not pursue any remedy with respect to this Indenture or the Securities
(except actions for payment of overdue principal, premium, if any, or interest or for the
conversion of the Securities pursuant to Article 4) unless:

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

     (2) 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;

     (3) such Holder or Holders offer to the Trustee reasonable security or indemnity to the
Trustee against any loss, liability or expense;

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

     (5) 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.

     (b) No Holder of a Security shall have any right under any provision of this Indenture or the
Securities to affect, disturb, or prejudice the rights of another Holder of a Security or to obtain
a preference or priority over another Holder of a Security.

     Section 7.07. 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 of the Principal, interest, Redemption Price, Optional Repurchase Price,
Fundamental Change Purchase Price, if any, or Additional Interest, if any, in respect of the
Securities held by such Holder, on or after the respective due dates expressed in the Securities
and this Indenture (whether upon repurchase or otherwise), and to convert such Security in
accordance with Article 4, and to bring suit for the enforcement of any such payment on or after
such respective due dates or for the right to convert in accordance with Article 4, is absolute and
unconditional and shall not be impaired or affected without the consent of the Holder.

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     Section 7.08. Collection Suit by Trustee.

     If an Event of Default described in clause (1) or (2) of Section 7.01(a) 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 such further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel.

     Section 7.09. 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 Receiver 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 8.07, 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 7.10. Priorities.

     (a) If the Trustee collects any money pursuant to this Article 7, it shall pay out the money
in the following order:

     (1) First, to the Trustee for amounts due under Section 8.07;

     (2) Second, to Holders for amounts due and unpaid on the Securities for the Principal,
interest, and Additional Interest, as applicable, ratably, without preference or priority of
any kind, according to such respective amounts due and payable on the Holders’ Securities;

     (3) Third, to such other Person or Persons, if any, to the extent entitled thereto; and

     (4) Fourth, the balance, if any, to the Company.

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     (b) The Trustee may fix a record date and payment date for any payment to Holders pursuant to
this Section 7.10.

     Section 7.11. 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, having due regard to the merits and good
faith of the claims or defenses made by the party litigant. This Section 7.11 does not apply to a
suit made by the Trustee, a suit by a Holder pursuant to Section 7.07, or a suit by Holders of more
than 25% in aggregate principal amount of the Securities then outstanding. This Section 7.11 shall
be in lieu of Section 315(e) of the TIA and such Section 315(e) is hereby expressly excluded from
this Indenture, as permitted by the TIA.

ARTICLE 8

TRUSTEE

     Section 8.01. Obligations of Trustee.

     (a) If an Event of Default of which a Responsible Officer of the Trustee shall have actual
knowledge has occurred and is continuing, the Trustee shall exercise such of the rights and powers
vested in it by this Indenture and use the same degree of care and skill in its exercise as a
prudent person would exercise or use under the circumstances in the conduct of his or her own
affairs.

     (b) Except during the continuance of an Event of Default of which a Responsible Officer of the
Trustee shall have actual knowledge:

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

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

     This Section 8.01(b) shall be in lieu of Section 315(a) of the TIA and such Section 315(a) is
hereby expressly excluded from this Indenture, as permitted by the TIA.

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

     (1) this paragraph does not limit the effect of Section 8.01(b);

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

     (3) the Trustee shall not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to Section 7.05.

     This Section 8.01(c) shall be in lieu of Sections 315(d)(1), 315(d)(2) and 315(d)(3) of the
TIA and such Sections are hereby expressly excluded from this Indenture as permitted by the TIA.

     (d) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or otherwise incur any financial liability in the performance of any of its duties hereunder or in
the exercise of any of its rights or powers unless the Trustee shall have received adequate
security or indemnity in its opinion against potential costs and liabilities incurred by it
relating thereto.

     (e) Every provision of this Indenture that in any way relates to the Trustee is subject to
subsections (a), (b), (c) and (d) of this Section 8.01.

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

     Section 8.02. Rights of Trustee.

     (a) Subject to Section 8.01:

     (1) The Trustee may rely conclusively and shall be protected in acting or refraining
from acting upon on any document believed by it to be genuine and to have been signed or
presented by the proper person. The Trustee need not investigate any fact or matter stated
in the document.

     (2) Before the Trustee acts or refrains from acting, it may require an Officers’
Certificate or an Opinion of Counsel, which shall conform to Section 12.04(b). 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.

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

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     (4) The Trustee shall not be liable for any action it takes or omits to take in good
faith which it believes to be authorized or within its rights or powers.

     (5) The Trustee may consult with counsel of its selection, and the advice or opinion of
such counsel as to matters of law shall be full and complete authorization and protection in
respect of any such action taken, omitted or suffered by it hereunder in good faith and in
accordance with the advice or opinion of such counsel.

     (6) The Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture or to institute, conduct or defend any litigation hereunder
or in relation hereto at the request or direction of any of the Holders pursuant to this
Indenture, unless such Holders shall have offered to the Trustee security or indemnity
satisfactory to the Trustee against the costs, expenses and liabilities which might be
incurred by it in compliance with such request or direction.

     (7) The Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or
other paper or document, but the Trustee, in its discretion, may make such further inquiry
or investigation into such facts or matters as it may see fit, 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. The reasonable expense of every such examination
shall be paid by the Company or, if paid by the Trustee, shall be repaid by the Company upon
demand from the Company’s own funds.

     (8) The Trustee shall not be deemed to have notice or knowledge of any Default, Event
of Default, or Fundamental Change unless a Responsible Officer of the Trustee has actual
knowledge thereof or unless written notice of any event which is in fact such a Default is
received by the Trustee at the Corporate Trust Office, and such notice references the
Securities and this Indenture. In the absence of receipt of such notice or actual
knowledge, the Trustee may conclusively assume that there is no Default, Event of Default,
or Fundamental Change.

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

     (10) The right of the Trustee to perform any discretionary act enumerated in this
Indenture shall not be construed as a duty, and the Trustee shall not be answerable for
other than its own gross negligence or willful misconduct in the performance of such act.

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     Section 8.03. Individual Rights of Trustee.

     The Trustee in its individual or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Company or an Affiliate of the Company with the same
rights it would have if it were not Trustee. Any Agent may do the same with like rights. However,
the Trustee is subject to Sections 8.10 and 8.11.

     Section 8.04. Trustee’s Disclaimer.

     The Trustee makes no representation as to the validity or adequacy of this Indenture or the
Securities and the Trustee assumes no responsibility for their correctness. It shall not be
accountable for the Company’s use of the proceeds from the Securities and it shall not be
responsible for any statement in the Securities other than its certificate of authentication.

     Section 8.05. Notice of Default or Events of Default.

     If a Default or an Event of Default occurs and is continuing and if it is known to the
Trustee, the Trustee shall mail to each Holder of a Security notice of all uncured Defaults or
Events of Default known to it within 90 days after it occurs, unless that default shall have been
cured or waived. However, the Trustee may withhold the notice if and for so long as a committee of
its Trust Officers in good faith determines that withholding notice is in the interests of Holders
of Securities, except in the case of a Default or an Event of Default in payment of the principal
of, or premium, if any, or interest on any Security when due or in the payment of any redemption or
purchase obligation, or the Company’s failure to convert Securities when obligated to convert them.
This Section 8.05 is in lieu of section 315(b) of the TIA and such provision is expressly excluded
from this Indenture as permitted by the TIA.

     Section 8.06. Reports by Trustee to Holders.

     (a) If a report is required by TIA Section 313, within 60 days after each May 15, beginning
with the May 15 following the date of this Indenture, the Trustee shall mail to each Holder of
Securities a brief report dated as of such May 15 that complies with TIA Section 313(a). If
required by TIA Section 313, the Trustee also shall comply with TIA Sections 313(b)(2) and (c). In
the event that no events have occurred under the applicable sections of the TIA, the Trustee shall
be under no duty or obligation to provide such reports.

     (b) A copy of each report at the time of its mailing to Holders of Securities shall be mailed
to the Company and, to the extent required by the TIA, filed with the SEC, and each stock exchange,
if any, on which the Securities are listed. The Company shall notify the Trustee whenever the
Securities become listed on any stock exchange or listed or admitted to trading on any quotation
system and any changes in the stock exchanges or quotation systems on which the Securities are
listed or admitted to trading and of any delisting thereof.

     Section 8.07. Compensation and Indemnity.

     (a) The Company shall pay to the Trustee from time to time such compensation (as agreed to
from time to time by the Company and the Trustee in writing) for its services (which compensation
shall not be limited by any provision of law in regard to the compensation of a

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trustee of an express trust). The Company shall reimburse the Trustee upon request for all
reasonable disbursements, expenses and advances incurred or made by it. Such expenses may include
the reasonable compensation, disbursements and expenses of the Trustee’s agents and counsel.

     (b) The Company shall indemnify the Trustee or any predecessor Trustee (which for purposes of
this Section 8.07 shall include its officers, directors, employees and agents) for, and hold it
harmless against, any and all loss, liability or expense including taxes (other than franchise
taxes and taxes based upon, measured by or determined by the income of the Trustee), incurred by it
arising out of or in connection with the acceptance or administration of its duties under this
Indenture or any action or failure to act as authorized or within the discretion or rights or
powers conferred upon the Trustee hereunder including the reasonable costs and expenses of the
Trustee and its counsel in defending (including reasonable legal fees and expenses) itself against
any claim or liability in connection with the exercise or performance of any of its powers or
duties hereunder. The Trustee shall notify the Company promptly of any claim asserted against the
Trustee for which it may seek indemnity. The Company need not pay for any settlement effected
without its prior written consent, which shall not be unreasonably withheld. Anything in this
Indenture to the contrary notwithstanding, in no event shall the Trustee be liable for special,
indirect or consequential loss or damage of any kind whatsoever (including but not limited to lost
profits), even if the Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action.

     (c) The Company need not reimburse the Trustee for any expense or indemnify it against any
loss or liability incurred by it resulting from its gross negligence, willful misconduct or bad
faith.

     (d) The Trustee shall have a senior claim to which the Securities are hereby made subordinate
on all money or property held or collected by the Trustee. The obligations of the Company under
this Section 8.07 shall survive the satisfaction and discharge of this Indenture or the resignation
or removal of the Trustee.

     (e) When the Trustee incurs expenses or renders services after an Event of Default specified
in clause (6) or (7) of Section 7.01(a) occurs, the expenses and the compensation for the services
are intended to constitute expenses of administration under any Bankruptcy Law. The provisions of
this Section shall survive the termination of this Indenture.

     Section 8.08. Replacement of Trustee.

     (a) The Trustee may resign by so notifying the Company. The Holders of a majority in
aggregate principal amount of the Securities then outstanding may remove the Trustee by so
notifying the Trustee and the Company and may, with the Company’s written consent, appoint a
successor Trustee. The Company may remove the Trustee at any time, so long as no Default or Event
of Default has occurred and is continuing, and appoint a Successor Trustee in accordance with this
Section 8.08.

     (b) If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for
any reason, the Company shall promptly appoint a successor Trustee. If the Company fails to

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promptly appoint a successor Trustee, the Trustee shall have the right to choose a qualified
Trustee as successor, and the Company shall appoint such successor as Trustee. The resignation or
removal of a Trustee shall not be effective until a successor Trustee shall have delivered the
written acceptance of its appointment as described below.

     (c) If a successor Trustee does not take office within 30 days after the retiring Trustee
resigns or is removed, the retiring Trustee, the Company or the Holders of 10% in principal amount
of the Securities then outstanding may petition any court of competent jurisdiction for the
appointment of a successor Trustee at the expense of the Company.

     (d) If the Trustee fails to comply with Section 8.10, any Holder who has been a bona fide
holder of indenture securities for at least six months may, on behalf of himself and all others
similarly situated, petition any court of competent jurisdiction for the removal of the Trustee and
the appointment of a successor Trustee.

     (e) A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Immediately after that, the retiring Trustee shall transfer all
property held by it as Trustee to the successor Trustee and be released from its obligations
(exclusive of any liabilities that the retiring Trustee may have incurred while acting as Trustee)
hereunder, the resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture.
A successor Trustee shall mail notice of its succession to each Holder.

     (f) A retiring Trustee shall not be liable for the acts or omissions of any successor Trustee
after its succession.

     (g) Notwithstanding replacement of the Trustee pursuant to this Section 8.08, the Company’s
obligations under Section 8.07 shall continue for the benefit of the retiring Trustee.

     Section 8.09. Successor Trustee by Merger, Etc.

     If the Trustee consolidates with, merges or converts into, or transfers all or substantially
all of its corporate trust business (including the administration of this Indenture) to, another
corporation, the resulting, surviving or transferee corporation, without any further act, shall be
the successor Trustee; provided such transferee corporation shall qualify and be eligible under
Section 8.10. Such successor Trustee shall promptly mail notice of its succession to the Company
and each Holder.

     Section 8.10. Eligibility; Disqualification.

     The Trustee shall always satisfy the requirements of paragraphs (1), (2) and (5) of TIA
Section 310(a). The Trustee (or its parent holding company) shall have a combined capital and
surplus of at least $50,000,000 as set forth in its most recent published annual report of
condition. If at any time the Trustee shall cease to satisfy any such requirements, it shall
resign immediately in the manner and with the effect specified in this Article 8. The Trustee
shall be subject to the provisions of TIA Section 310(b). Nothing herein shall prevent the Trustee
from filing with the SEC the application referred to in the penultimate paragraph of TIA Section
310(b).

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     Section 8.11. Preferential Collection of Claims Against Company.

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

ARTICLE 9

SATISFACTION AND DISCHARGE OF INDENTURE

     Section 9.01. Satisfaction and Discharge of Indenture.

     (a) This Indenture shall cease to be of further force and effect (except as to any surviving
rights of conversion, registration of transfer or exchange of Securities herein expressly provided
for and except as further provided below), 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 either:

     (A) all Securities theretofore authenticated and delivered (other than (i) Securities
which have been destroyed, lost or stolen and which have been replaced or paid as provided
in Section 2.07 and (ii) Securities for whose payment money has theretofore been deposited
in trust and thereafter repaid to the Company as provided in Section 9.03) have been
delivered to the Trustee for cancellation; or

     (B) all such Securities not theretofore delivered to the Trustee for cancellation have
become due and payable, whether at the Final Maturity Date or any Redemption Date, Optional
Repurchase Date or Fundamental Change Purchase Date, or upon conversion or otherwise;

provided that

     (1) the Company has deposited with the Trustee, a Paying Agent (other than the Company
or any of its Affiliates) or a Conversion Agent, if applicable, immediately available funds
in trust and/or shares of Common Stock, if applicable, for the purpose of and in an amount
sufficient to pay and discharge all indebtedness and obligations related to such Securities
not theretofore delivered to the Trustee for cancellation, for principal and interest
(including Additional Interest, if any) to the date of such deposit (in the case of
Securities which have become due and payable) or the Redemption Date, Optional Repurchase
Date, Fundamental Change Purchase Date or Conversion Date, as the case may be;

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

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

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     (b) Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company with respect to the conversion privilege and the Conversion Rate of the Securities pursuant
to Article 4, the obligations of the Company to the Trustee under Section 8.07 and, if money shall
have been deposited with the Trustee pursuant to clause (2) of Section 9.01(a), the provisions of
Sections 2.03, 2.04, 2.05, 2.06, 2.07, 2.12, 5.01 and 12.05, Article 4, and this Article 9, shall
survive until the Securities have been paid in full.

     Section 9.02. Application of Trust Money.

     Subject to the provisions of Section 9.03, the Trustee or a Paying Agent shall hold in trust,
for the benefit of the Holders, all money deposited with it pursuant to Section 9.01 and shall
apply the deposited money in accordance with this Indenture and the Securities to the payment of
the principal of and interest on the Securities.

     Section 9.03. Repayment to Company.

     (a) The Trustee and each Paying Agent shall promptly pay to the Company upon request any
excess money (1) deposited with them pursuant to Section 9.01 and (2) held by them at any time.

     (b) The Trustee and each Paying Agent shall, subject to applicable abandonment property laws,
pay to the Company upon request any money held by them for the payment of principal or interest
that remains unclaimed for two years after a right to such money has matured; provided, however,
that the Trustee or such Paying Agent, before being required to make any such payment, may at the
expense of the Company cause to be mailed to each Holder entitled to such money notice that such
money remains unclaimed and that after a date specified therein, which shall be at least 30 days
from the date of such mailing, any unclaimed balance of such money then remaining will be repaid to
the Company. After payment to the Company, Holders entitled to money must look to the Company for
payment as general creditors unless an applicable abandoned property law designates another person.

     Section 9.04. Reinstatement.

     If the Trustee or any Paying Agent is unable to apply any money in accordance with Section
9.02 by reason of any legal proceeding or by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such application, then the
Company’s obligations under this Indenture and the Securities shall be revived and reinstated as
though no deposit had occurred pursuant to Section 9.01 until such time as the Trustee or such
Paying Agent is permitted to apply all such money in accordance with Section 9.02; provided,
however, that if the Company has made any payment of the principal of or interest on any Securities
because of the reinstatement of its obligations, the Company shall be subrogated to the rights of
the Holders of such Securities to receive any such payment from the money held by the Trustee or
such Paying Agent.

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ARTICLE 10

AMENDMENTS; SUPPLEMENTS AND WAIVERS

     Section 10.01. Without Consent of Holders.

     Without the consent of any Holders of the Securities, the Company, when authorized by or
pursuant to a resolution of the Board of Directors, and the Trustee may enter into an indenture to
indentures supplemental hereto for any of the following purposes:

     (a) to evidence the succession or addition of another Person to the Company and the
assumption by any such successor of covenants of the Company under this Indenture;

     (b) to add to the covenants of the Company for the benefit of the Holders or to
surrender any right or power conferred upon the Company in this Indenture;

     (c) to add any additional Events of Default for the benefit of the Holders of all the
Securities;

     (d) to permit or facilitate the issuance of the Securities in uncertificated form,
provided that such action shall not adversely affect the Holders in any material respect.

     (e) to secure the Securities;

     (f) to evidence and provide for the acceptance of appointment by a successor Trustee
and to add to or change any of the provisions of this Indenture as is necessary to provide
for or facilitate the administration of the trusts under this Indenture by more than one
Trustee;

     (g) to provide for rights of Holders of the Securities if any reclassification or
change of shares of Common Stock or any consolidation, merger or sale of all or
substantially all of the Company’s property or assets occurs;

     (h) to comply with the requirements of the SEC in order to effect or maintain the
qualification of this Indenture under the Trust Indenture Act, as contemplated by this
Indenture or otherwise;

     (i) to cure any ambiguity, defect or inconsistency in this Indenture provided that such
action shall not adversely affect the Holders in any material respect;

     (j) to conform the text of this Indenture or the Securities to any provision of the
“Description of Notes” section of the Offering Memorandum dated November 16, 2006 pursuant
to which the Securities were offered and sold, to the extent that such provision in the
“Description of Notes” section was intended to be a verbatim recitation of a provision of
this Indenture or the Securities;

     (k) to supplement any of the provisions of this Indenture to the extent necessary to
permit or facilitate satisfaction and discharge of the Securities under this

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Indenture, provided that such action shall not adversely affect the interests of the
Holders in any material respect; or

     (l) to take any other action that will not adversely affect the Holders.

     Section 10.02. With Consent of Holders.

     (a) The Company and the Trustee may amend or supplement this Indenture or the Securities with
the written consent of the Holders of at least a majority in aggregate principal amount of the
Securities then outstanding and affected by such amendment or supplement (voting together as a
single class). However, subject to Section 10.04, without the written consent of each Holder
affected, an amendment, supplement or waiver may not:

     (i) change the stated maturity of the principal of, or any installment of principal of,
or interest (including Additional Interest, if any) on, the Securities;

     (ii) reduce the principal amount of, the rate of interest (including Additional
Interest, if any) on the Securities, or change any of the Company’s obligations to pay
Additional Interest;

     (iii) change the timing or reduce the amount payable on the redemption or repurchase of
the Securities;

     (iv) make any change that impairs or adversely affects the rights of a Holder to
convert Securities in accordance herewith;

     (v) change the place of payment, or the coin or currency, for payment of principal of,
or interest (including Additional Interest, if any) on, the Securities;

     (vi) impair the right to institute suit for the enforcement of any payment on or with
respect to Securities or the delivery of the Conversion Value as required by this Indenture
upon a conversion of Securities;

     (vii) reduce the above stated percentage in principal amount of Outstanding Securities
necessary to modify or amend this Indenture, to waive compliance with specified provisions
thereof or specified defaults and consequences thereunder or to reduce the quorum or voting
requirements set forth in this Indenture; or

     (viii) modify any of the provisions of this Section 10.02 or Section 7.02, 7.04, 7.05
or 8.08(a) of this Indenture, except to increase the required percentage to effect such
action or to provide that specified other provisions of this Indenture may not be modified
or waived without the consent of the Holders of each outstanding Security affected thereby.

     (b) Without limiting the provisions of Section 10.02(a) hereof, the Holders of a majority in
principal amount of the Securities then outstanding may, on behalf of all the Holders of all
Securities, (i) waive compliance by the Company with the restrictive provisions of this Indenture,
and (ii) waive any past Default or Event of Default under this Indenture and its

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consequences, except an uncured failure to pay when due the principal amount, accrued and
unpaid interest, accrued and unpaid Additional Interest or Fundamental Change Purchase Price or
Optional Repurchase Price, or in the obligation to deliver Common Stock or cash, if any and as
applicable, or in respect of any provision which under this Indenture cannot be modified or amended
without the consent of the Holder of each outstanding Security affected.

     (c) After an amendment, supplement or waiver under this Section 10.02 becomes effective, the
Company shall promptly 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.

     (d) Notwithstanding the provisions of this Section 10.02, the consent of the Holders of a
majority of the principal amount of the outstanding Securities is required to amend or supplement
the provisions of Section 4.13 such that, from and after the date of the amendment or supplement,
the Company will have the ability to satisfy the Principal Return upon conversion of a Security in
cash, Common Stock or any combination thereof; provided, however, that the Company may, without
seeking the consent of any Holders of Securities, (i) increase the voting requirements set forth in
this Section 10.02(d) or (ii) eliminate its right to implement the modification or amendment to
this Indenture set forth in this Section 10.02(d).

     (e) For purposes of this Indenture, Securities will be deemed Outstanding if they have been
authenticated and delivered under this Indenture unless, among other things, the Securities have
matured or been cancelled, converted, redeemed or repurchased.

     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.

     (a) 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.

     (b) After an amendment, supplement or waiver becomes effective, it shall bind every Holder of
a Security.

     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

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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. If it does, 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 entitled to receive and, subject to Section 8.01, shall be fully protected in
relying upon, an Opinion of Counsel stating that such amendment or supplemental indenture is
authorized or permitted by this Indenture. The Company may not sign an amendment or supplement
indenture until the Board of Directors approves it.

     Section 10.07. Effect of Supplemental Indentures.

     Upon the execution of any supplemental indenture under this Article 10, 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.

ARTICLE 11

REDEMPTION

     Section 11.01. Redemption.

     (a) The Company shall not have the right to redeem any Securities prior to November 21, 2013.

     (b) The Company shall have the right to redeem the Securities, in whole or in part at any time
or from time to time, on or after November 21, 2013 upon not less than 30 nor more than 60 days’
prior written notice by mail to the Holders of the Securities, at a redemption price (“Redemption
Price”) for cash equal to 100% of the principal amount of the Securities to be redeemed plus any
accrued but unpaid interest (and Additional Interest, if any) to, but excluding, the Redemption
Date. If the Redemption Date is after the close of business on the Regular Record Date for the
payment of an installment of interest and before the related Interest Payment Date, then the
payment of interest becoming due on that date will be payable to the holder of record at the close
of business on the relevant Record Date, and the Redemption Price will not include such interest
payment. If less than all the Securities are to be redeemed, the Trustee shall select the
Securities to be redeemed (in principal amounts of $1,000 and integral multiples thereof) on a pro
rata basis or by such other method the Trustee considers fair and appropriate or is required by the
Depositary for the Securities. The Trustee shall make the selection at least 30 days but not more
than 60 days before the Redemption Date from Outstanding Securities not previously called for
redemption. Securities and portions of the principal amount thereof selected for redemption shall
be in integral multiples of $1,000. The Trustee shall notify the Company promptly of the
Securities or portions of the principal amount thereof to be redeemed. If the Trustee selects a
portion of a Security for partial redemption and a Holder converts a

63

 

portion of the same Security 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 to be
from the portion selected for redemption. Securities that have been converted during a selection
of Securities to be redeemed shall be treated by the Trustee as Outstanding for the purpose of such
selection.

     (c) If the Paying Agent holds, in accordance with the terms of this Indenture, money
sufficient to pay the Redemption Price of such Securities on the Redemption Date, then, on and
after such date, such Securities shall cease to be Outstanding and interest on such Securities
shall cease to accrue and all rights of the Holders of such Securities shall terminate (other than
the right to receive the Redemption Price (and Additional Interest, if any) due on the Redemption
Date). Such will be the case whether or not book entry transfer of the Securities in book entry
form is made and whether or not Securities in certificated form, together with the necessary
endorsements, are delivered to the Paying Agent.

     (d) A notice of redemption sent to the Holders of Securities to be redeemed in accordance with
the provisions of the two preceding paragraphs shall state:

     (1) the name of the Paying Agent and Conversion Agent;

     (2) the then current Conversion Rate;

     (3) that Securities called for redemption may be converted at any time prior to the
close of business on the third Business Day immediately preceding the Redemption Date,
unless the Company fails to pay the Redemption Price; and

     (4) that Holders who wish to convert Securities must comply with the procedures
relating thereto specified in Section 4.02 hereof.

ARTICLE 12

MISCELLANEOUS

     Section 12.01. Trust Indenture Act Controls.

     If any provision of this Indenture limits, qualifies or conflicts with the duties imposed by
any of Sections 310 to 317, inclusive, of the TIA through operation of Section 318(c) thereof, such
imposed duties shall control.

     Section 12.02. Notices.

     Any demand, authorization notice, request, consent or communication shall be given in writing
and delivered in person 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 following facsimile numbers:

64

 

If to the Company, to:

RARE Hospitality International, Inc.

8215 Roswell Road, Building 600

Atlanta, Georgia 30350

Attention: Joia M. Johnson

Fax: (770) 901-6626

with a copy to:

Alston & Bird LLP

90 Park Avenue

New York, New York 10016

Attention: Mark McElreath

Fax: (212) 210-9444

if to the Trustee, to:

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

100 Ashford Center North, Suite 520

Atlanta, Georgia 30338

Attention: Corporate Trust Administration

Fax: (770) 698-5195

     Such notices or communications shall be effective when received.

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

     Any notice or communication mailed to a Holder of a Security shall be mailed by first-class
mail or delivered by an overnight delivery service to it at its address shown on the register kept
by the Primary Registrar.

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

     If the Company mails any notice to a Holder of a Security, it shall mail a copy to the Trustee
and each Registrar, Paying Agent and Conversion Agent.

     Section 12.03. Communications by Holders with Other Holder.

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

65

 

     Section 12.04. Certificate and Opinion as to Conditions Precedent.

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

     (1) 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

     (2) 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 shall include:

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

     (2) 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;

     (3) 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

     (4) a statement as to whether or not, in the opinion of such person, such condition or
covenant has been complied with; provided, however, 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 Holders of Securities.

     (a) The Company (or, in the event deposits have been made pursuant to Section 9.01, the
Trustee) may set a record date for purposes of determining the identity of Holders entitled to vote
or consent to 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.

     (b) A meeting will be permitted to be called at any time by the Trustee, and also, upon
request, by the Company or the Holders of at least 10% in principal amount of the Outstanding
Securities, in any such case upon written notice given as provided in this Indenture.

66

 

Except for any consent that must be given by the Holder of each Security affected by specified
modifications and amendments of this Indenture, any resolution presented at a meeting or adjourned
meeting duly reconvened at which a quorum is present will be permitted to be adopted by the
affirmative vote of the Holders entitled to vote a majority in aggregate principal amount of the
Outstanding Securities represented at that meeting; provided, however, that, except as referred to
above, any resolution with respect to any request, demand, authorization, direction, notice,
consent, waiver or other action that may be made, given or taken by the Holders of a specified
percentage, which is less than a majority, in principal amount of the Outstanding Securities may be
adopted at a meeting or adjourned meeting duly reconvened at which a quorum is present by the
affirmative vote of the Holders of such specified percentage in principal amount of the Outstanding
Securities. Any resolution passed or decision taken at any meeting of Holders of Securities duly
held in accordance with this Indenture will be binding on all Holders of such Securities, whether
or not present or represented at the meeting. The quorum at any meeting of Holders of the
Securities called to adopt a resolution, and at any reconvened meeting, will be persons holding or
representing a majority in principal amount of such Outstanding Securities; provided, however, that
if any action is to be taken at such meeting with respect to a consent or waiver which may be given
by the Holders of not less than a specified percentage in principal amount of the Outstanding
Securities, the persons holding or representing such specified percentage in principal amount of
such Outstanding Securities will constitute a quorum.

     (c) Notwithstanding the foregoing provisions, if any action is to be taken at a meeting of
Holders of the Securities with respect to any request, demand, authorization, direction, notice,
consent, waiver or other action that this Indenture expressly provides may be made, given or taken
by the Holders of a specified percentage in principal amount of all Outstanding Securities affected
thereby:

     (1) there shall be no minimum quorum requirement for such meeting; and

     (2) the principal amount of such Outstanding Securities that vote in favor of such
request, demand, authorization, direction, notice, consent, waiver or other action shall be
taken into account in determining whether such request, demand, authorization, direction,
notice, consent, waiver or other action has been made, given or taken under this Indenture.

     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 authorized or obligated to close. If a payment date is a
Legal Holiday, payment shall be made on the next succeeding day that is not a Legal

67

 

Holiday, and no interest shall accrue for the intervening period. If a Regular Record Date is
a Legal Holiday, the record date shall not be affected.

     Section 12.08. Governing Law.

     This Indenture and the Securities shall be governed by, and construed in accordance with, the
laws of the State of New York.

     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 director, officer, employee, incorporator or shareholder of the Company, as such, will have
any liability for any obligations of the Company under the Securities, this Indenture, or for any
claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of
Securities by accepting a Security waives and releases all such liability. The waiver and release
are part of the consideration for issuance of the Securities. The waiver may not be effective to
waive liabilities under the federal securities laws.

     Section 12.11. No Security Interest Created.

     Nothing in this Indenture or in the Securities, express or implied, shall be construed to
constitute a security interest under the Uniform Commercial Code or similar legislation, now in
effect or hereafter enacted and made effective, in any jurisdiction.

     Section 12.12. Successors.

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

     Section 12.13. Multiple Counterparts.

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

     Section 12.14. Separability.

     If 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 12.15. Table of Contents, Headings, Etc.

68

 

     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 PAGES FOLLOWS]

69

 

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

	 	 	 	 	 
	 	RARE HOSPITALITY 

INTERNATIONAL, INC.

 	 
	 	By:  	/s/ Philip J. Hickey
 	 
	 	 	Name:  	Philip J. Hickey 	 
	 	 	Title:  	Chairman of the Board and Chief
Executive Officer 	 
	 

70

 

	 	 	 	 	 
	 	THE BANK OF NEW YORK TRUST

COMPANY, N.A., as Trustee

 	 
	 	By:  	/s/ Karen Z. Kelly
 	 
	 	 	Name:  	Karen Z. Kelly 	 
	 	 	Title:  	Vice President 	 
	 

71

 

EXHIBIT A

[FORM OF FACE OF SECURITY]

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY IS EXCHANGEABLE FOR
SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR
IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE
BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE
DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.1

     THIS SECURITY AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS SECURITY HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY
STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING
SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER:

     (1) AGREES THAT IT WILL NOT RESELL OR OTHERWISE TRANSFER THIS SECURITY OR ANY SHARES OF
COMMON STOCK ISSUABLE UPON CONVERSION OF THE SECURITY EXCEPT (A) TO RARE HOSPITALITY
INTERNATIONAL, INC. (THE “COMPANY”) OR ANY OF ITS SUBSIDIARIES, (B) TO A QUALIFIED
INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, (C) PURSUANT TO
THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF
AVAILABLE), OR (D) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE
UNDER THE SECURITIES ACT AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF RESALE OR
TRANSFER; AND

 

			
	1	 	This paragraph should be included only if the Security is a Global Security.

A-1 

 

     (2) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED
PURSUANT TO CLAUSE 1(B) ABOVE A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IN
CONNECTION WITH ANY TRANSFER OF THIS SECURITY, THE HOLDER MUST CHECK THE APPROPRIATE BOX SET
FORTH ON THE REVERSE HEREOF RELATING TO THE MANNER OF THE TRANSFER AND SUBMIT THIS SECURITY
TO THE TRUSTEE (OR ANY SUCCESSOR TRUSTEE, AS APPLICABLE). IF THE PROPOSED TRANSFER IS
PURSUANT TO CLAUSE 1(C) ABOVE, THE HOLDER MUST, PRIOR TO THE TRANSFER, FURNISH TO THE
TRUSTEE (OR ANY SUCCESSOR TRUSTEE, AS APPLICABLE), ANY CERTIFICATIONS, LEGAL OPINIONS OR
OTHER INFORMATION AS THE COMPANY OR THE TRUSTEE MAY REASONABLY REQUIRE TO CONFIRM THAT THE
TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

     NO PROSPECTUS PURSUANT TO ARTICLE 3 OF THE DIRECTIVE 2003/71/EC (THE “PROSPECTUS DIRECTIVE”)
HAS BEEN PUBLISHED IN RELATION TO THE SECURITIES EVIDENCED HEREBY. ACCORDINGLY, THE SECURITIES
EVIDENCED HEREBY MAY NOT BE OFFERED TO THE PUBLIC (WITHIN THE MEANING OF THE PROSPECTUS DIRECTIVE)
IN ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA, EXCEPT THAT AN OFFER OF SECURITIES MAY BE MADE
TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INVESTOR (WITHIN THE MEANING OF THE
PROSPECTUS DIRECTIVE).2

 

			
	2	 	These paragraphs should be included only if the Security is a Restricted Security.

A-2 

 

RARE HOSPITALITY INTERNATIONAL, INC.

2.50% Convertible Senior Notes due 2026

	 	 	 	 	 	 	 	 	 
	No.

	 	 
	 	 
	 	CUSIP:
	 	 
	 

	 	 
	 	 	 	 	 	 

     RARE Hospitality International, Inc., a State of Georgia corporation, promises to pay to Cede
& Co. or registered assigns the principal amount of [•] dollars ($[•]) on November 15,
2026.

     This Security shall bear interest as specified on the other side of this Security. This
Security is convertible as specified on the other side of this Security.

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

	 	 	 	 	 
	Dated:

	 	 
	 	 
	 

	 	 	 	 

SIGNATURE PAGE FOLLOWS

A-3 

 

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

	 	 	 	 	 
	 	RARE HOSPITALITY 

INTERNATIONAL, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	Dated:

	 	 
	 	 
	 

	 	 	 	 

Trustee’s Certificate of Authentication: This is one of the Securities referred to in the
within-mentioned Indenture.

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

as Trustee

	 	 	 	 	 
	By:

	 	 
	 	 
	 

	 	 	 	 
	 

	 	Authorized Signatory	 	 

A-4 

 

[FORM OF REVERSE SIDE OF SECURITY]

RARE HOSPITALITY INTERNATIONAL, INC.

2.50% CONVERTIBLE SENIOR NOTES DUE 2026

     This Security is one of a duly authorized issue of notes, debentures, bonds, or other
evidences of indebtedness of the Company (hereinafter called the “Securities”) of the series
hereinafter specified, all issued or to be issued under and pursuant to an Indenture, dated as of
November 22, 2006 between the Company and The Bank of New York Trust Company, N.A., as trustee, and
reference is hereby made to the Indenture, and all modifications and amendments and indentures
supplemental thereto relating to the Securities, for a description of the rights, limitations of
rights, obligations, duties, and immunities thereunder of the Trustee, the Company and the Holders
of the Securities and the terms upon which the Securities are authenticated and delivered. Terms
used herein without definition and which are defined in the Indenture have the meanings assigned to
them in the Indenture.

	1.	 	INTEREST

     The Securities shall bear interest at the rate of 2.50% per annum from November 22, 2006 or
from the most recent Interest Payment Date (as defined below) to which interest has been paid or
duly provided for, as the case may be, payable semi-annually in arrears on May 15 and November 15
of each year (each, an “Interest Payment Date”), commencing on May 15, 2007, until the principal
hereof is paid or duly made available for payment. Interest payable on each Interest Payment Date
shall equal the amount of interest accrued for the period commencing on and including the
immediately preceding Interest Payment Date in respect of which interest has been paid or duly
provided for (or commencing on and including November 22, 2006, if no interest has been paid or
duly provided for) and ending on and including the day preceding such Interest Payment Date.
Interest will cease to accrue on a Security upon its maturity, conversion or repurchase by the
Company at the option of a Holder or redemption. Interest on the Securities will be computed on
the basis of a 360-day year consisting of twelve 30-day months.

	2.	 	METHOD OF PAYMENT

     Except as provided in the Indenture, the Company shall pay interest on the Securities to the
Persons who are Holders of record of Securities at the close of business (whether or not a Business
Day) on the November 1 and May 1 immediately preceding the applicable Interest Payment Date (each,
a “Regular Record Date”). Holders must surrender Securities to a Paying Agent and comply with the
other terms of the Indenture to collect the principal amount, Redemption Price, Optional Repurchase
Price or Fundamental Change Purchase Price of the Securities, plus, if applicable, accrued and
unpaid interest (including Additional Interest, if any) payable as herein provided at maturity,
upon redemption at the Company’s option or repurchase at the Holder’s option. The Company shall
pay, in money of the United States that at the time of payment is legal tender for payment of
public and private debts, all amounts due in cash with respect to the Securities on the dates and
in the manner provided in this Security and the Indenture.

	3.	 	PAYING AGENT, CONVERSION AGENT AND SECURITY REGISTRAR

A-5 

 

     Initially, the Trustee shall act as Paying Agent, Conversion Agent and Security Registrar.
The Company hereby initially designates the Corporate Trust Office of the Trustee in New York, New
York as the office to be maintained by it where this Security may be presented for payment,
registration of transfer or exchange, where notices or demands to or upon the Company in respect of
this Security or the Indenture may be served and where the Securities may be surrendered for
conversion in accordance with the provisions of paragraph 6 hereof and the Indenture. The Company
may appoint and change any Paying Agent, Conversion Agent, Security Registrar or co-registrar or
approve a change in the office through which any Paying Agent acts without notice, other than
notice to the Trustee.

	4.	 	REDEMPTION BY THE COMPANY

     The Company shall not have the right to redeem any Securities prior to November 21, 2013. The
Company shall have the right to redeem the Securities for cash, in whole or in part at any time or
from time to time, on or after November 21, 2013 at 100% of the principal amount of the Securities
to be redeemed plus any accrued but unpaid interest (including Additional Interest, if any) to, but
excluding, the Redemption Date (the “Redemption Price”).

     Notice of redemption at the option of the Company shall be mailed at least 30 days but not
more than 60 days before the Redemption Date to each Holder of Securities to be redeemed at the
Holder’s registered address. Securities in denominations larger than $1,000 principal amount may
be redeemed in part but only in integral multiples of $1,000 principal amount.

	5.	 	OPTIONAL REPURCHASE RIGHTS; REPURCHASE AT OPTION OF HOLDER UPON A FUNDAMENTAL CHANGE

     (a) Subject to the terms and conditions of the Indenture, a Holder shall have the right to
require the Company to repurchase all of its Securities, or any portion of the principal amount
thereof that is equal to $1,000 or an integral multiple thereof, on each of November 15, 2013,
November 15, 2016 and November 15, 2021 (each, an “Optional Repurchase Date”) for cash equal to
100% of the principal amount of the Securities to be repurchased plus accrued but unpaid interest
(including Additional Interest, if any) to, but excluding, such Optional Repurchase Date (the
“Optional Repurchase Price”), upon delivery to the Paying Agent of an Optional Repurchase Notice
containing the information set forth in the Indenture.

     (b) If a Fundamental Change occurs at any time, a Holder shall have the right, at such
Holder’s option and subject to the terms and conditions of the Indenture, to require the Company to
repurchase all or any of such Holder’s Securities having a principal amount equal to $1,000 or an
integral multiple thereof on the date (the “Fundamental Change Purchase Date”) specified by the
Company in the Company Notice for cash equal to the 100% of the principal amount of the Securities
to be repurchased plus accrued but unpaid interest (including Additional Interest, if any) to, but
excluding, the Fundamental Change Purchase Date (the “Fundamental Change Purchase Price”).

     (c) Holders have the right to withdraw any Optional Repurchase Notice or Fundamental Change
Purchase Notice, as the case may be, by delivery to the Paying Agent of a written notice of
withdrawal in accordance with the provisions of the Indenture.

A-6 

 

     (d) If the Paying Agent holds, in accordance with the terms of the Indenture, money sufficient
to pay the Optional Repurchase Price or Fundamental Change Purchase Price of such Securities on the
Optional Repurchase Date or Fundamental Change Purchase Date, as the case may be, then, on and
after such date and as set forth in the Indenture, such Securities shall cease to be Outstanding
and interest on such Securities shall cease to accrue, and all other rights of the Holder shall
terminate (other than the right to receive the Optional Repurchase Price or Fundamental Change
Purchase Price upon delivery or transfer of the Securities).

	6.	 	CONVERSION

     The Securities shall be convertible into the consideration specified in the Indenture at such
times, upon compliance with such conditions and upon the terms set forth in the Indenture.

     The initial Conversion Rate shall be 22.9690 shares of Common Stock per $1,000 principal
amount of Securities, subject to adjustment in certain circumstances as specified in the Indenture.

     To convert this Security if this Security is in book-entry form, the Holder must convert by
book-entry transfer to the Conversion Agent through the facilities of DTC and the conversion notice
must comply with all applicable DTC procedures. To convert this Security if this Security is held
in certificated form, the Holder must (a) complete and manually sign the irrevocable conversion
notice set forth below (or complete and manually sign a facsimile of such notice) and deliver such
notice to the Conversion Agent at the office maintained by the Conversion Agent for such purpose,
(b) surrender such Security to the Conversion Agent, (c) furnish appropriate endorsements and
transfer documents if required by the Conversion Agent and (d) pay any transfer or similar tax, if
required. The date on which the Holder satisfies all such requirements shall be deemed to be the
date on which this Security shall have been tendered for conversion.

     If the Holder has delivered an Optional Repurchase Notice or a Fundamental Change Purchase
Notice requiring the Company to repurchase all or a portion of this Security pursuant to paragraph
5 hereof, then this Security (or portion hereof subject to such Optional Repurchase Notice or
Fundamental Change Purchase Notice) may be converted only if the Optional Repurchase Notice or
Fundamental Change Purchase Notice is withdrawn in accordance with the terms of the Indenture.

	7.	 	RANKING

     The Securities are senior unsecured obligations of the Company and shall rank pari passu in
right of payment with all other senior unsecured indebtedness of the Company from time to time
outstanding.

	8.	 	DENOMINATIONS; TRANSFER; EXCHANGE

     This Security is issuable only in fully registered, book-entry form, in denominations of
$1,000 and integral multiples thereof. This Security may be exchanged for a like aggregate
principal amount of Securities of other authorized denominations at the office or agency of the
Company in The City of New York, in the manner and subject to the limitations provided herein and
in the Indenture, but without the payment of any charge except for any tax or other

A-7 

 

governmental charge imposed in connection therewith. Upon due presentment for registration of
transfer of this Security at the office or agency of the Company in The City of New York, one or
more new Securities of authorized denominations in an equal aggregate principal amount will be
issued to the transferee in exchange therefor, and bearing such restrictive legends as may be
required by the Indenture, but without payment of any charge except for any tax or other
governmental charge imposed in connection therewith.

	9.	 	PERSONS DEEMED OWNERS

     The Holder of this Security may be treated as the owner of this Security for all purposes, and
none of the Company or the Trustee nor any authorized agent of the Company or the Trustee shall be
affected by any notice to the contrary, except as required by law.

	10.	 	ADDITIONAL RIGHTS OF HOLDERS

     In addition to the rights provided to Holders of Securities under the Indenture, Holders shall
have all the rights set forth in the Registration Rights Agreement, dated as of November 22, 2006,
among the Company and the Initial Purchasers named therein.

	11.	 	MODIFICATION AND AMENDMENT; WAIVER

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities under the Indenture at any time by the Company and the Trustee with the consent of the
Holders of a majority in the aggregate principal amount of all Outstanding Securities affected
thereby (voting together as a single class). The Indenture also provides that certain amendments
or modifications may not be made without the consent of each Holder to be affected thereby.
Furthermore, provisions in the Indenture permit the Holders of a majority in the aggregate
principal amount of the Outstanding Securities, in certain instances, to waive, on behalf of all of
the Holders of Securities, certain past defaults under the Indenture and their consequences. Any
such waiver by the Holder of this Security shall be conclusive and binding upon such Holder and
upon all future Holders of this Security and other Securities issued upon the registration of
transfer hereof or in exchange hereof, or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Security.

	12.	 	DEFAULTS AND REMEDIES

     The Indenture sets forth events that constitute an Event of Default under the Indenture. If
an Event of Default shall occur and be continuing, there may be declared due and payable the
principal amount (together with accrued and unpaid interest) on the Securities in the manner and
with the effect provided in the Indenture. If certain bankruptcy or insolvency events occur and
continue with respect to the Company or a Significant Subsidiary, the Securities shall
automatically become due and payable in accordance with the terms of the Indenture.

	14.	 	CONSOLIDATION, MERGER, AND SALE OF ASSETS

     In the event of a consolidation or merger of the Company or a sale, lease or conveyance of all
or substantially all of the assets of the Company as described in Article 6 of the Indenture,

A-8 

 

the successor entity to the Company shall succeed to and be substituted for the Company and
may exercise the rights and powers of the Company under the Indenture, and thereafter, except in
the case of a lease, the Company shall be relieved of all obligations and covenants under the
Indenture and the Securities.

	15.	 	TRUSTEE AND AGENT DEALINGS WITH THE COMPANY

     The Trustee, Paying Agent, Conversion Agent and Registrar under the Indenture, each 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 Trustee,
Paying Agent, Conversion Agent or Registrar.

	17.	 	CALCULATIONS IN RESPECT OF THE SECURITIES

     Except as otherwise specifically stated herein or in the Indenture, all calculations to be
made in respect of the Securities shall be the obligation of the Company. These calculations
include, but are not limited to, determinations of the Conversion Price and Conversion Rate
applicable to the Securities. All calculations made by the Company or its agent as contemplated
pursuant to the terms hereof and of the Indenture shall be made in good faith and, absent manifest
error, shall be final and binding on the Company and the Holders. The Company shall provide a
schedule of calculations to the Trustee, and the Trustee shall be entitled to rely upon the
accuracy of the calculations by the Company without independent verification. The Trustee shall
forward calculations made by the Company to any Holder of Securities upon request within 20
Business Days of the effective date of any adjustment.

	18.	 	GOVERNING LAW

     The Indenture and this Security shall be governed by and construed in accordance with the laws
of the State of New York.

A-9 

 

ASSIGNMENT FORM

     To assign this Security, fill in the form below:

     I or we assign and transfer this Security to

 

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

 

 

 

 

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

and irrevocably appoint

 

agent to transfer this Security on the books of the Company. The agent may substitute another to
act for him or her.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Your Signature
	 
	 	 	 	 	 	 
	Date:

	 	 
	 	 
	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	(Sign exactly as your name appears on the
	 

	 	 	 	 	 	other side of this Security)

* Signature guaranteed by:

	 	 	 	 	 
	By:

	 	 
	 	 
	 

	 	 	 	 

 

			
	*	 	The signature must be guaranteed by an institution which is a member of one of the following
recognized signature guaranty programs: (i) the Securities Transfer Agent Medallion Program
(STAMP); (ii) the New York Stock Exchange Medallion Program (MSP); (iii) the Stock Exchange
Medallion Program (SEMP); or (iv) such other guaranty program acceptable to the Trustee.

A-10 

 

CONVERSION NOTICE

     To convert this Security into Common Stock of the Company, check the box:

     To convert only part of this Security, state the principal amount to be converted (must be
$1,000 or a integral 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 I.D. no.)

 

 

 

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

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Your Signature
	 
	 	 	 	 	 	 
	Date:

	 	 
	 	 
	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	(Sign exactly as your name appears on the
	 

	 	 	 	 	 	other side of this Security)

* Signature guaranteed by:

	 	 	 	 	 
	By:

	 	 
	 	 
	 

	 	 	 	 

 

			
	*	 	The signature must be guaranteed by an institution which is a member of one of the following
recognized signature guaranty programs: (i) the Securities Transfer Agent Medallion Program
(STAMP); (ii) the New York Stock Exchange Medallion Program (MSP); (iii) the Stock Exchange
Medallion Program (SEMP); or (iv) such other guaranty program acceptable to the Trustee.

A-11 

 

SCHEDULE OF EXCHANGES OF SECURITIES(1)

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

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Principal Amount of this	 	 	 	 	 	 	 	 	 	 
	Global Security	 	 	 	 	 	 	 	 	 	 
	Following Such Decrease	 	 	 	 	 	Amount of Decrease in	 	 	Amount of Increase in	 
	Date of Exchange (or	 	Authorized Signatory of	 	 	Principal Amount of this	 	 	Principal Amount of this	 
	Increase)	 	Securities Custodian	 	 	Global Security	 	 	Global Security	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

 

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

A-12 

 

CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR REGISTRATION

OF TRANSFER OF RESTRICTED SECURITIES

Re: 2.50% Convertible Senior Notes due 2026 (the “Securities”) of RARE Hospitality International,
Inc.

This certificate relates to $           principal amount of Securities owned in (check applicable box)

o book-entry or o definitive form by               (the “Transferor”).

     The Transferor has requested a Registrar or the Trustee to exchange or register the transfer
of such Securities.

     In connection with such request and in respect of each such Security, the Transferor does
hereby certify that the Transferor is familiar with transfer restrictions relating to the
Securities as provided in Section 2.12 of the Indenture dated as of November 22, 2006 between RARE
Hospitality International, Inc. and The Bank of New York Trust Company, N.A., as trustee (the
“Indenture”), and the transfer of such Security is being made pursuant to an effective registration
statement under the Securities Act of 1933, as amended (the “Securities Act”) (check applicable
box), or the transfer or exchange, as the case may be, of such Security does not require
registration under the Securities Act because (check applicable box):

	 	 	 
	o	 	Such Security is being transferred pursuant to an effective registration statement
under the Securities Act.
	 
	 	 
	o	 	Such Security is being acquired for the Transferor’s own account, without transfer.
	 
	 	 
	o	 	Such Security is being transferred to the Company or a Subsidiary (as defined in the
Indenture) of the Company.
	 
	 	 
	o	 	Such Security is being transferred to a person the Transferor reasonably believes is
a “qualified institutional buyer” (as defined in Rule 144A or any successor
provision thereto (“Rule 144A”) under the Securities Act) that is purchasing for its
own account or for the account of a “qualified institutional buyer”, in each case to
whom notice has been given that the transfer is being made in reliance on such Rule
144A, and in each case in reliance on Rule 144A.
	 
	 	 
	o	 	Such Security is being transferred pursuant to and in compliance with an exemption
from the registration requirements under the Securities Act in accordance with Rule
144 (or any successor thereto) (“Rule 144”) under the Securities Act.
	 
	 	 
	o	 	Such Security is being transferred to a non-U.S. Person in an offshore transaction
in compliance with Rule 904 of Regulation S under the Securities Act (or any
successor thereto).

A-13 

 

	 	 	 
	 
	 	 
	o	 	Such Security is being transferred pursuant to and in compliance with an exemption
from the registration requirements of the Securities Act (other than an exemption
referred to above) and as a result of which such Security will, upon such transfer,
cease to be a “restricted security” within the meaning of Rule 144 under the
Securities Act.

A-14 

 

     The Transferor acknowledges and agrees that, if the transferee will hold any such Securities
in the form of beneficial interests in a Global Security which is a “restricted security” within
the meaning of Rule 144 under the Securities Act, then such transfer can only be made pursuant to
(i) Rule 144A under the Securities Act and such transferee must be a “qualified institutional
buyer” (as defined in Rule 144A) or (ii) Regulation S under the Securities Act.

	 	 	 	 	 	 	 
	Date:

	 	 
	 	 
	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	(Insert Name of Transferor)

A-15EX-4.2 REGISTRATION RIGHTS AGREEMENT

 

Exhibit 4.2

REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT (the “Agreement” ) is made and entered into as of November
22, 2006 between RARE Hospitality International, Inc., a Georgia
corporation (the “Company”) and
the several initial purchasers (the “Initial Purchasers”) named in Schedule A to the
Purchase Agreement (as defined below), for whom Wachovia Capital Markets, LLC is acting as
representative (the “Representative”).

     This Agreement is made pursuant to the Purchase Agreement, dated November 16, 2006 (the
“Purchase Agreement”), between the Company as issuer of the 2.50% Convertible Senior Notes due 2026
(the “Notes”) and the Initial Purchasers, which provides for, among other things, the sale of the
Notes by the Company to the Initial Purchasers.

     In order to induce the Initial Purchasers to enter into the Purchase Agreement, the Company
has agreed to provide to the Initial Purchasers and their respective direct and indirect
transferees the registration rights set forth in this Agreement. The execution of this Agreement
is a condition to the closing under the Purchase Agreement.

     In consideration of the foregoing, the Company agrees with the Initial Purchasers (i) for
their benefit as Initial Purchasers and (ii) for the benefit of the Holders (as defined below) from
time to time of Registrable Securities (as defined below):

     1. Definitions. Capitalized terms used herein without definition shall have the respective
meanings ascribed to them in the Purchase Agreement. As used in this Agreement, the following
capitalized defined terms shall have the following meanings:

          “Additional Interest” shall have the meaning set forth in Section 2(e) hereof.

          “Advice” shall have the meaning set forth in the last paragraph of Section 3 hereof.

          “Announcement” shall have the meaning set forth in Section 2(a)(ii) hereof.

          “Affiliate” has the same meaning as given to that term in Rule 405 under the Securities Act or
any successor rule thereunder.

          “Automatic Shelf Registration Statement” shall mean a registration statement filed by a
Well-Known Seasoned Issuer which shall become effective upon filing thereof pursuant to General
Instruction I.D of Form S-3.

          “Business Day” means any day other than a Saturday, a Sunday, or a day on which banking
institutions in New York, New York are authorized or required by law or executive order to remain
closed.

          “Common Stock” means the shares of common stock, no par value, of the Company, potentially
issuable upon conversion of the Notes.

 

 

          “Company” shall have the meaning set forth in the preamble to this Agreement and also includes
the Company’s successors and permitted assigns.

          “Closing Date” shall mean each Closing Date as defined in the Purchase Agreement.

          “Effective Date” shall mean the date the initial Shelf Registration Statement becomes
effective or, in the case of designation of an Automatic Shelf Registration Statement as the Shelf
Registration Statement, the date a Prospectus is first made available thereunder for use by the
Holders.

          “Effectiveness Deadline” shall mean (i) for purposes of Section 2(a)(i) hereof, the
180th day following the Issue Date, (ii) for purposes of the filing of any
post-effective amendment pursuant to Section 2(a)(iii) hereof, the 30th day after the
obligation to make such filing arises, (iii) for purposes of the filing of any Shelf Registration
Statement pursuant to Section 2(a)(iii) hereof, the 60th day after the obligation to
make such filing arises, and (iv) for purposes of any filing made pursuant to Section 2(a)(iv)
hereof, the fifteenth Business Day after the obligation to make such filing arises.

          “Effectiveness Period” shall have the meaning set forth in Section 2(a)(iv) hereof.

          “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.

          “Filing Deadline” shall mean (i) for purposes of Section 2(a)(i) hereof, March 31, 2007 and
(ii) for purposes of Section 2(a)(iii) hereof, the tenth Business Day after the date of receipt by
the Company of the information specified therein (or, if a Suspension Period is then in effect or
initiated within five Business Days following the date of receipt of such information, the
fifteenth Business Day following the end of such Suspension Period).

          “Holder” shall mean each Initial Purchaser, for so long as such Initial Purchaser owns any
Registrable Securities, and each of such Initial Purchaser’s respective successors, assigns and
direct and indirect transferees who become registered owners of Registrable Securities.

          "Indenture” shall mean the Indenture relating to the Securities, dated as of November 22,
2006, between the Company and the Trustee, pursuant to which the Notes are being issued, and in
accordance with which the Common Stock may be issued, as the same may be amended, supplemented,
waived or otherwise modified from time to time in accordance with the terms thereof.

          “Initial Purchasers” shall have the meaning set forth in the preamble to this Agreement.

          “Inspectors” shall have the meaning set forth in Section 3(l) hereof.

          “Issue Date” shall mean November 22, 2006, the date of original issuance of the Notes.

2

 

          “Majority Holders” shall mean the Holders collectively holding a majority of the aggregate
principal amount of outstanding Notes or the number of shares of outstanding Common Stock, as the
context requires.

          “Notes” shall have the meaning set forth in the preamble to this Agreement.

          “Person” shall mean an individual, partnership, corporation, trust or unincorporated
organization, limited liability corporation, or a government or agency or political subdivision
thereof.

          “Prospectus” shall mean the prospectus included in a Shelf Registration Statement, including
any preliminary prospectus, any issuer “free writing prospectus,” as such term is defined in Rule
433 under the Securities Act, and any such prospectus as amended or supplemented by any prospectus
supplement, including a prospectus supplement with respect to the terms of the offering of any
portion of the Registrable Securities covered by a Shelf Registration Statement, and by all other
amendments and supplements to a prospectus, including post-effective amendments, and, in each case,
including all documents incorporated by reference therein.

          “Purchase Agreement” shall have the meaning set forth in the preamble to this Agreement.

          “Questionnaire” shall have the meaning set forth in Section 2(a)(ii) hereof.

          “Records” shall have the meaning set forth in Section 3(l) hereof.

          “Registrable Securities” shall mean the Notes and the Common Stock; provided, however, that
(i) the Notes shall cease to be Registrable Securities upon the earlier of (1) a Shelf Registration
Statement with respect thereto for the resale of the Notes having been declared effective under the
Securities Act and such Notes having been disposed of pursuant to such Shelf Registration
Statement, (2) such Notes having become eligible to be sold without restriction as contemplated by
Rule 144(k) under the Securities Act by a Person who is not an Affiliate of the Company, or (3)
such Notes having ceased to be outstanding, and (ii) the Common Stock shall cease to be Registrable
Securities upon the earlier of (1) a Shelf Registration Statement with respect to such Common Stock
for the resale thereof having been declared effective under the Securities Act and such Common
Stock having been disposed of pursuant to such Shelf Registration Statement, (2) such Common Stock
having become eligible to be sold without restriction as contemplated by Rule 144(k) under the
Securities Act by a Person who is not an Affiliate of the Company, or (3) such Common Stock having
ceased to be outstanding.

          “Registration Expenses” shall mean any and all expenses incident to performance of or
compliance by the Company with this Agreement, including without limitation: (i) all SEC or
National Association of Securities Dealers, Inc. (the “NASD”) registration and filing fees, (ii)
all fees and expenses incurred in connection with compliance with state securities or blue sky laws
(including reasonable fees and disbursements of one counsel for all underwriters or Holders as a
group in connection with blue sky qualification of any of the Registrable Securities) and

3

 

compliance by the Company with the rules of the NASD, (iii) all expenses of any Persons in
preparing or assisting in preparing, word processing, printing, duplicating, and distributing any
Shelf Registration Statement, any Prospectus and any amendments or supplements thereto, and in
preparing or assisting in preparing, printing, duplicating, and distributing any underwriting
agreements, securities sales agreements and other documents relating to the performance of and
compliance with this Agreement, of one counsel for the Holder in connection with the Shelf
Registration Statement, (iv) all rating agency fees, (v) the fees and disbursements of counsel for
the Company, of one counsel for the Holders in connection with the Shelf Registration Statement and
of the independent certified public accountants of the Company, including the expenses of any “cold
comfort” letters required by or incident to the performance of and compliance with this Agreement,
and (vi) the reasonable fees and expenses of any special experts retained by the Company in
connection with the Shelf Registration Statement.

          “SEC” shall mean the Securities and Exchange Commission.

          “Securities” shall mean the Notes and the Common Stock.

          “Securities Act” shall mean the Securities Act of 1933, as amended from time to time.

          “Shelf Registration” shall mean a registration effected pursuant to Section 2(a) hereof.

          “Shelf Registration Statement” shall mean a “shelf” registration statement of the Company
pursuant to the provisions of Section 2(a) hereof, which covers all or any portion of the
Registrable Securities, on Form S-3 (including an Automatic Shelf Registration Statement) or, if
not then available to the Company, on another appropriate form under Rule 415 under the Securities
Act, or any similar rule that may be adopted by the SEC, and all amendments and supplements to such
registration statement, including post-effective amendments, in each case including the Prospectus
contained therein, all exhibits thereto and all documents incorporated by reference therein.

          “Suspension Period” shall have the meaning set forth in Section 2(a)(iv).

          “Trustee” shall mean the trustee with respect to the Notes under the Indenture.

          “Well-Known Seasoned Issuer” shall have the meaning set forth in Rule 405 under the Securities
Act.

     2. Registration Under the Securities Act.

          (a) Shelf Registration.

               (i) The Company shall file or cause to be filed (or otherwise designate an existing Automatic
Shelf Registration Statement previously filed with the SEC as) a Shelf Registration Statement
providing for the sale by the Holders of all of the Registrable Securities, as promptly as
reasonably practicable but in any event on or prior to the Filing Deadline. If the Shelf
Registration Statement is not an Automatic Shelf Registration Statement, the Company

4

 

shall use its reasonable best efforts to have such Shelf Registration Statement declared effective by the SEC as
promptly as reasonably practicable after filing thereof, but in any event on or prior to the
Effectiveness Deadline

               (ii) Notwithstanding any other provision hereof, no Holder of Registrable Securities shall be
entitled to include any of its Registrable Securities in any Shelf Registration Statement pursuant
to this Agreement unless and until such Holder agrees in writing to be bound by all of the
provisions of this Agreement applicable to such Holder and the Holder furnishes to the Company a
fully completed notice and questionnaire in the form attached as Appendix A to the Offering
Memorandum (the “Questionnaire”) and such other information in writing as the Company may
reasonably request in writing for use in connection with the Shelf Registration Statement or
Prospectus included therein and in any application to be filed with or under state securities laws.
The Company shall issue a press release through Dow Jones & Company, Inc. or Bloomberg Business
News or publish the information in a newspaper of general circulation in the City of New York (the
“Announcement”) of its filing (or intention to designate an Automatic Shelf Registration Statement)
of the Shelf Registration Statement and either the anticipated Effective Date thereof or the
anticipated filing date of a supplement to the Prospectus to cover resales of the Registrable
Securities by the Holders (the “Initial Questionnaire Deadline”). In order to be named as a
selling securityholder in the Prospectus at the time it is first made available for use, each
Holder must furnish the completed Questionnaire and such other information that the Company may
reasonably request in writing, if any, to the Company in writing no later than the tenth Business
Day prior to the anticipated Initial Questionnaire Deadline as announced in the Announcement. Each
Holder as to which any Shelf Registration is being effected agrees to furnish to the Company from
time to time all information with respect to such Holder necessary to make the information
previously furnished to the Company by such Holder not materially misleading.

               (iii) From and after the Initial Questionnaire Deadline, upon receipt of a completed
Questionnaire and such other information that the Company may reasonably request in writing, if
any, the Company will use its reasonable best efforts to file as promptly as reasonably practicable
but in any event on or prior to the Filing Deadline either (i) if then permitted by the Securities
Act or the rules and regulations thereunder (or then-current SEC interpretations thereof), a
supplement to the Prospectus naming such Holder as a selling securityholder and containing such
other information as necessary to permit such Holder to deliver the Prospectus to purchasers of the
Holder’s Registrable Securities, or (ii) if it is not then permitted under the Securities Act or
the rules and regulations thereunder (or then-current SEC interpretations thereof) to name such
Holder as a selling securityholder in a supplement to the Prospectus, a post-effective amendment to
the Shelf Registration Statement or an additional Shelf Registration Statement as necessary for
such Holder to be named as a selling securityholder in the Prospectus contained therein to permit
such Holder to deliver the Prospectus to purchasers of the Holder’s Securities (subject, in the
case of either clause (i) or clause (ii), to the Company’s right to suspend use of the Shelf
Registration Statement as described in Section 2(a)(iv) hereof). If a post-effective amendment or
additional Shelf Registration Statement is required to be filed, the Company shall use its
reasonable best efforts to have such post-effective amendment or additional Shelf Registration
Statement declared effective by the SEC as promptly as reasonably practicable after filing thereof,
but in any event

5

 

on or prior to the Effectiveness Deadline. Upon giving written notice to the
Holders of Registrable Securities, the Company shall be permitted to suspend sales under the Shelf
Registration Statement until the post-effective amendment or additional Shelf Registration
Statement is declared effective by the SEC. However, any days after the 15th
consecutive day that sales are suspended pursuant to the immediately preceding sentence shall count towards the
30-day and 90-day aggregate limits on Suspension Periods addressed in Section 2(a)(iv) below. The
Company shall not be required to file more than (A) three supplements to the Prospectus in any
fiscal quarter for all such Holders or (b) three post-effective amendments or additional Shelf
Registration Statements in any 180-day period for all such Holders.

               (iv) The Company agrees to use its reasonable best efforts to keep the Shelf Registration
Statement continuously effective and the Prospectus usable for resales until there are no
Registrable Securities outstanding (the “Effectiveness
Period”); provided, however, that for 45
days or less (whether or not consecutive) in any three-month period, and for 135 days or less
(whether or not consecutive) in any 12-month period, the Company shall be permitted, by giving
written notice to the Holders of Registrable Securities, to suspend sales thereof if the Shelf
Registration Statement is no longer effective or usable for resales due to circumstances relating
to pending developments, filings with the SEC and similar events, or because the Prospectus
contains an untrue statement of a material fact or omits to state a material fact required to be
stated therein or necessary in order to make statements therein not misleading (any period of
suspension hereunder, a “Suspension
Period”). If any Shelf Registration Statement ceases to be
effective or usable for resales by Holders for any reason (other than by reason of any such
Holder’s failure to provide a Questionnaire, in which case the provisions of Section 2(a)(ii) or
2(a)(iii) hereof shall apply) at any time during the Effectiveness Period, subject to the existence
of a Suspension Period as described in the proviso contained in the immediately preceding sentence,
the Company shall use its reasonable best efforts to promptly cause such Shelf Registration
Statement to become effective under the Securities Act, and in any event shall, within ten Business
Days of such cessation of effectiveness or usability, (i) file with the SEC one or more supplements
to the Prospectus, post-effective amendments or reports under the Exchange Act in a manner
reasonably expected to obtain the withdrawal of any order suspending the effectiveness of such
Shelf Registration Statement, or (ii) file with the SEC an additional Shelf Registration Statement.
If a post-effective amendment or an additional Shelf Registration Statement is filed, the Company
shall use its reasonable best efforts to (A) cause such post-effective amendment or Shelf
Registration Statement to become effective under the Securities Act as promptly as reasonably
practicable after such filing, but in no event later than the applicable Effectiveness Deadline,
and (B) keep such post-effective amendment or Shelf Registration Statement continuously effective
until the end of the Effectiveness Period.

               (v) If the Shelf Registration Statement is not an Automatic Shelf Registration Statement, the
Company shall not permit any securities other than the Registrable Securities to be included in the
Shelf Registration. The Company will provide to each Holder named therein a reasonable number of
copies of the Prospectus which is a part of the Shelf Registration Statement, notify each such
Holder of the Effective Date and take such other actions as are required to permit unrestricted
resales of the Registrable Securities by such Holder. The Company further agrees to supplement or
amend the Shelf Registration Statement or supplement the Prospectus if and as required by the
rules, regulations or instructions applicable to the

6

 

registration form used by the Company for such Shelf Registration Statement or by the Securities Act or by any other rules and regulations
thereunder for shelf registrations, and the Company agrees to furnish to the Holders of Registrable
Securities copies of any such supplement or amendment as promptly as reasonably practicable after
its being used or filed with the SEC.

          (b) Listing. The Company shall use its reasonable best efforts to maintain the approval of
the Common Stock for listing on The NASDAQ Global Select Market.

          (c) Expenses. The Company shall pay all Registration Expenses in connection with any Shelf
Registration Statement filed pursuant to Section 2(a) hereof (including the reasonable fees and
disbursements of Fried, Frank, Harris, Shriver & Jacobson LLP, as counsel for the Holders of the
Registrable Securities in connection with the review of any Shelf Registration Statement,
Prospectus or amendment or supplement thereto in accordance with the provisions of Section 3(a)
hereof). Except as provided herein, each Holder shall pay all expenses of its counsel, underwriting
discounts and commissions and transfer taxes, if any, relating to the sale or disposition of such
Holder’s Registrable Securities pursuant to the Shelf Registration Statement.

          (d) Effective Shelf Registration Statement. If, after the Effective Date the offering of
Registrable Securities pursuant to a Shelf Registration Statement is interfered with by any stop
order, injunction or other order or requirement of the SEC or any other governmental agency or
court, such Shelf Registration Statement will be deemed not to have been effective during the
period of such interference, until the offering of Registrable Securities pursuant to such Shelf
Registration Statement may legally resume.

          (e) Additional Interest. In the event that:

               (i) a Shelf Registration Statement is not filed with the SEC or designated as such by the
Company on or prior to March 31, 2007, then additional interest
(“Additional Interest”) shall
accrue on the principal amount of the Notes at a rate equal to 0.25% per annum for the first 90-day
period from the day following such Filing Deadline, and thereafter at a rate per annum of 0.50% of
the principal amount of the Notes;

               (ii) (x) a Shelf Registration Statement is not declared effective by the SEC, or (y) if the
Company shall have designated a previously filed and effective Automatic Shelf Registration
Statement as the Shelf Registration Statement for purposes of this Agreement, the Company shall not
have filed a supplement to the Prospectus to cover resales of the Registrable Notes by the Holders,
in the case of either (x) or (y), on or prior to the Effectiveness Deadline pursuant to Section
2(a)(i), then Additional Interest shall accrue on the principal amount of the Securities at a rate
equal to 0.25% per annum for the first 90-day period from the day following such Effectiveness
Deadline, and thereafter at a rate per annum of 0.50% of the principal amount of the Notes;

               (iii) following the Effective Date, a Shelf Registration Statement ceases to be effective
(without being succeeded immediately by an additional Shelf Registration Statement that is filed
and immediately becomes effective) or usable for the offer and sale of the Registrable Securities,
other than (x) in connection with a Suspension Period or (y) as a result of

7

 

a requirement to file a post-effective amendment or supplement to the Prospectus to make changes to the information
regarding selling securityholders or the plan of distribution provided for therein, and the Company
does not cure the lapse of effectiveness or usability within ten Business Days (or, if a Suspension
Period is then in effect, within ten Business Days following the expiration of such Suspension
Period) by a post-effective amendment, prospectus supplement or report filed pursuant to the
Exchange Act, then Additional Interest shall accrue on the
principal amount of the Notes at a rate equal to 0.25% per annum for the first 90-day period from
the day following such tenth Business Day, and thereafter at a rate per annum of 0.50% of the
principal amount of the Notes; provided, that if the Suspension Period or Periods exceed 45 days in
any three-month period or 135 days in any 12-month period, then, commencing with the
46th day in such three-month period or the 136th day in such 12-month period,
as the case may be, Additional Interest shall accrue on the principal amount of the Notes at a rate
equal to 0.25% per annum for the first 90-day period from the day following the 45th or
135th day, as the case may be, and thereafter at a rate per annum of 0.50% of the
principal amount of the Notes; or

               (iv) the Company fails to name as a selling securityholder any Holder that had complied timely
with its obligations hereunder in a manner to entitle such Holder to be so named in (A) any Shelf
Registration Statement, or any amendment to the Shelf Registration Statement, at the time it first
becomes effective or (B) any Prospectus at the later of time of filing thereof, or the time the
Shelf Registration Statement or amendment to the Shelf Registration Statement of which the
Prospectus forms a part becomes effective, then Additional Interest will accrue on the principal
amount of Notes held by such Holder at a rate equal to 0.25% per annum for the first 90-day period
from the day following the effective date of such Shelf Registration Statement or the time of
filing of such Prospectus, as the case may be, and thereafter at a rate per annum of 0.50% of the
principal amount of the Securities held by such Notes;

provided, however, that in no event shall Additional Interest pursuant to all of the provisions
described above at any one time accrue at a rate per annum exceeding 0.50% of the principal amount
of the Notes; and provided further that Additional Interest on the principal amount of the Notes as
a result thereof shall cease to accrue:

                    (1) upon the filing or designation of a Shelf Registration Statement (in the case of clause
(i) above);

                    (2) upon the Effective Date (in the case of clause (ii) above);

                    (3) upon such time as the Shelf Registration Statement which had ceased to remain effective or
usable for resales again becomes effective and usable for resales (in the case of clause (iv)
above);

                    (4) upon the time such Holder is permitted to sell its Registrable Securities pursuant to any
Shelf Registration Statement and Prospectus in accordance with applicable law (in the case of
clause (iv) above); or

                    (5) such Securities cease to be Registrable Securities.

8

 

          Any amounts of Additional Interest due pursuant to Section 2(e) will be payable in cash on the
next succeeding regular interest payment date for the Notes to Holders entitled to receive such
Additional Interest on the relevant record dates for the payment of interest on such Notes.

          Notwithstanding any provision in this Agreement, in no event shall Additional Interest accrue
to holders of Common Stock issued upon conversion of Notes. If any Note ceases to be
outstanding during any period for which Additional Interest are accruing, the Company will prorate
the Additional Interest payable with respect to such Note.

          (f) Specific Enforcement. Without limiting the remedies available to the Holders, the Company
acknowledges that any failure by it to comply with its obligations under Section 2(a) hereof may
result in material irreparable injury to the Holders for which there is no adequate remedy at law,
that it would not be possible to measure damages for such injuries precisely and that, in the event
of any such failure, any Holder may obtain such relief as may be required to specifically enforce
the Company’s obligations under Section 2(a) hereof.

     3. Registration Procedures. In connection with the obligations of the Company with respect to
the Shelf Registration Statement pursuant to Section 2(a) hereof, the Company shall use its best
efforts to:

          (a) prepare and file with the SEC or designate a Shelf Registration Statement as prescribed
by Section 2(a)(i) hereof within the relevant time period specified in Section 2(a)(i) hereof on
the appropriate form under the Securities Act, which filing shall (i) be selected by the Company,
(ii) be available for the sale of the Registrable Securities by the selling Holders thereof, and
(iii) comply as to form in all material respects with the requirements of the applicable form and
include all financial statements required by the SEC to be filed therewith; the Company shall use
its reasonable best efforts to cause such Shelf Registration Statement to become effective and
remain effective and the Prospectus usable for resales in accordance with Section 2 hereof;
provided, however, that, before filing any Shelf Registration Statement or Prospectus or any
amendments or supplements thereto, the Company shall furnish to and afford the Holders of the
Registrable Securities covered by such Shelf Registration Statement, their counsel and the managing
underwriters, if any, a reasonable opportunity to review copies of all such documents (excluding
copies of any documents to be incorporated by reference therein and all exhibits thereto) proposed
to be filed; and the Company shall not file any Shelf Registration Statement or Prospectus or any
amendments or supplements thereto in respect of which the Holders must be afforded an opportunity
to review prior to the filing of such document if the Majority Holders, their counsel or the
managing underwriters, if any, shall reasonably object in a timely manner;

          (b) subject to Section 2, prepare and file with the SEC such amendments and post-effective
amendments to the Shelf Registration Statement as may be necessary to keep such Shelf Registration
Statement effective for the Effectiveness Period, and cause each Prospectus to be supplemented, if
so determined by the Company or requested by the SEC, by any required prospectus supplement and as
so supplemented to be filed pursuant to Rule 424 (or any similar provisions then in force) under
the Securities Act, and comply with the provisions of the Securities Act, the Exchange Act and the
rules and regulations promulgated thereunder

9

 

applicable to it with respect to the disposition of
all securities covered by a Shelf Registration Statement during the Effectiveness Period in
accordance with the intended method or methods of distribution by the selling Holders thereof
described in this Agreement and the Questionnaire;

          (c) (i) furnish to each Holder of Registrable Securities included in the Shelf Registration
Statement and to each underwriter of an underwritten offering of Registrable Securities, if any,
without charge, as many copies of each Prospectus, including each preliminary prospectus, and
any amendment or supplement thereto, and such other documents as such Holder or underwriter may
reasonably request, in order to facilitate the public sale or other disposition of the Registrable
Securities and (ii) consent to the use of the Prospectus or any amendment or supplement thereto by
each of the selling Holders of Registrable Securities included in the Shelf Registration Statement
in connection with the offering and sale of the Registrable Securities covered by the Prospectus or
any amendment or supplement thereto;

          (d) register or qualify the Registrable Securities under all applicable state securities or
“blue sky” laws of such jurisdictions by the time the applicable Shelf Registration Statement has
become effective under the Securities Act as any Holder of Registrable Securities covered by a
Shelf Registration Statement and each underwriter of an underwritten offering of Registrable
Securities shall reasonably request in writing in advance of such date of effectiveness, and do any
and all other acts and things which may be reasonably necessary or advisable to enable such Holder
and underwriter to consummate the disposition in each such jurisdiction of such Registrable
Securities owned by such Holder; provided, however, that the Company shall not be required to (i)
qualify as a foreign entity or as a dealer in securities in any jurisdiction where it would not
otherwise be required to qualify but for this Section 3(d), (ii) file any general consent to
service of process in any jurisdiction where it would not otherwise be subject to such service of
process or (iii) subject itself to taxation in any such jurisdiction if it is not then so subject;

          (e) as promptly as reasonably practicable notify each Holder of Registrable Securities, their
counsel and the managing underwriters, if any, and as promptly as reasonably practicable confirm
such notice in writing (i) when a Shelf Registration Statement has become effective and when any
post-effective amendments thereto become effective, (ii) of any request by the SEC or any state
securities authority for amendments and supplements to a Shelf Registration Statement or Prospectus
or for additional information after the Shelf Registration Statement has become effective, (iii) of
the issuance by the SEC or any state securities authority of any stop order suspending the
effectiveness of a Shelf Registration Statement or the qualification of the Registrable Securities
in any jurisdiction described in Section 3(d) hereof or the initiation of any proceedings for that
purpose, (iv) if, between the Effective Date and the closing of any sale of Registrable Securities
covered thereby, any of the representations and warranties of the Company contained in any purchase
agreement, securities sales agreement or other similar agreement cease to be true and correct in
all material respects, (v) of the happening of any event or the failure of any event to occur or
the discovery of any facts, during the Effectiveness Period, which makes any statement made in a
Shelf Registration Statement or the related Prospectus untrue in any material respect or which
causes such Shelf Registration Statement or Prospectus to omit to state a material fact necessary
in order to make the statements therein, in the light of the circumstances under which they were
made, not misleading, and (vi) of the reasonable

10

 

determination of the Company that a post-effective amendment to the Shelf
Registration Statement would be appropriate;

          (f) obtain the withdrawal of any order suspending the effectiveness of the Shelf Registration
Statement as promptly as reasonably practicable;

          (g) furnish to each Holder of Registrable Securities included within the coverage of a Shelf
Registration Statement, without charge, at least one conformed copy of the Shelf Registration
Statement relating to such Shelf Registration and any post-effective amendment
thereto (without documents incorporated therein by reference or exhibits thereto, unless
requested);

          (h) cooperate with the selling Holders of Registrable Securities to facilitate the timely
preparation and delivery of certificates representing Registrable Securities to be sold and not
bearing any restrictive legends and registered in such names as the selling Holders or the
underwriters may reasonably request at least two Business Days prior to the closing of any sale of
Registrable Securities pursuant to the Shelf Registration Statement;

          (i) as promptly as reasonably practicable after the occurrence of any event specified in
Section 3(e)(ii), 3(e)(iii), 3(e)(v) (subject to the respective grace periods set forth in Section
2(a)(iv)) or 3(e)(vi) hereof, prepare a supplement or post-effective amendment to the Shelf
Registration Statement or the related Prospectus or any document incorporated therein by reference
or file any other required document so that, as thereafter delivered to the purchasers of the
Registrable Securities, such Prospectus will not include any untrue statement of a material fact or
omit to state a material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; and the Company shall notify each Holder
to suspend use of the Prospectus as promptly as reasonably practicable after the occurrence of such
an event, and each Holder hereby agrees to suspend use of the Prospectus until the Company has
amended or supplemented the Prospectus to correct such misstatement or omission;

          (j) subject to Section 5 hereof, enter into such agreements (including underwriting
agreements) as are customary in underwritten offerings and take all such other appropriate actions
in connection therewith as are reasonably requested by any Holders in order to expedite or
facilitate the registration or the disposition of the Registrable Securities;

          (k) whether or not an underwriting agreement is entered into and whether or not the
registration is an underwritten registration, if requested by (x) any Initial Purchaser, in the
case where such Initial Purchaser holds any Securities acquired by it as part of its initial
placement or (y) Holders collectively holding at least 25% in aggregate principal amount or number,
as the context requires, of the outstanding Registrable Securities: (i) make such representations
and warranties to Holders of such Registrable Securities and the underwriters (if any), with
respect to the business of the Company and its subsidiaries as then conducted and with respect to
the Shelf Registration Statement, Prospectus and documents, if any, incorporated or deemed to be
incorporated by reference therein, in each case, as were of the type made in the Purchase
Agreement, and confirm the same if and when requested; (ii) obtain opinions of counsel to the

11

 

Company and updates thereof (which may be in the form of a reliance letter) in form and substance
reasonably satisfactory to the managing underwriters, addressed to the underwriters (if any)
covering the matters included in the opinions of counsel of the type provided pursuant to the terms
of the Purchase Agreement and such other matters as may be reasonably requested by such
underwriters (it being agreed that the matters to be covered by such opinion may be subject to
customary qualifications and exceptions); (iii) obtain “cold comfort” letters and updates thereof
in form and substance reasonably satisfactory to the managing underwriters from the independent
certified public accountants of the Company (and, if necessary, any other independent certified
public accountants of any business acquired by the Company for which financial statements and
financial data are, or are required to be, included in the Registration
Statement), addressed to each of the underwriters, such letters to cover the same types of matters
required pursuant to the terms of the “cold comfort” letter provisions of the Purchase Agreement
and such other matters as reasonably requested by such underwriters in accordance with Statement on
Auditing Standards No. 72; and (iv) if an underwriting agreement is entered into, the same shall
contain indemnification provisions and procedures no less favorable than those set forth in Section
4 hereof (or such other provisions and procedures acceptable to Holders collectively holding a
majority in aggregate principal amount or number, as the context requires, of Registrable
Securities covered by such Shelf Registration Statement and the managing underwriters) customary
for such agreements with respect to all parties to be indemnified pursuant to said Section
(including, without limitation, such underwriters and selling Holders); and in the case of an
underwritten registration, the above requirements shall be satisfied at each closing under the
related underwriting agreement or as and to the extent required thereunder;

          (l) make reasonably available for inspection by any selling Holder of Registrable Securities
who certifies to the Company that it has a current intention to sell Registrable Securities
pursuant to the Shelf Registration, any underwriter participating in any such disposition of
Registrable Securities, if any, and any attorney, accountant or other agent retained by any such
selling Holder or underwriter (collectively, the “Inspectors”), at the offices where normally kept,
during the Company’s normal business hours, all financial and other records, pertinent
organizational and operational documents and properties of the Company and its subsidiaries
(collectively, the “Records”) as shall be reasonably necessary to enable them to exercise any
applicable due diligence responsibilities, and cause the officers, trustees and employees of the
Company and its subsidiaries to supply all relevant information in each case reasonably requested
by any such Inspector in connection with such Shelf Registration Statement; records and information
which the Company believes, in good faith, to be confidential and any Records and information which
it notifies the Inspectors are confidential shall not be disclosed to any Inspector except where
(i) the disclosure of such Records or information is necessary to avoid or correct a material
misstatement or omission in such Shelf Registration Statement, (ii) the release of such Records or
information is ordered pursuant to a subpoena or other order from a court of competent jurisdiction
or is necessary in connection with any action, suit or proceeding or (iii) such Records or
information previously has been made generally available to the public; each selling Holder of such
Registrable Securities will be required to agree in writing that Records and information obtained
by it as a result of such inspections shall be deemed confidential and shall not be used by it as
the basis for any market transactions in the securities of the Company unless and until such is
made generally available to the public through no fault of an Inspector or a selling Holder; and
each selling Holder of such Registrable Securities will be

12

 

required to further agree in writing
that it will, upon learning that disclosure of such Records or information is sought in a court of
competent jurisdiction, or in connection with any action, suit or proceeding, give notice to the
Company and allow the Company at its expense to undertake appropriate action to prevent disclosure
of the Records and information deemed confidential;

          (m) comply with all applicable rules and regulations of the SEC so long as any provision of
this Agreement shall be applicable and make generally available to its securityholders earning
statements satisfying the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder
(or any similar rule promulgated under the Securities Act) no later than 45 days after the end of
any twelve-month period (or 90 days after the end of any twelve-month period if such period is a
fiscal year) (i) commencing at the end of any fiscal quarter in which Registrable
Securities are sold to underwriters in a firm commitment or best efforts underwritten offering and
(ii) if not sold to underwriters in such an offering, commencing on the first day of the first
fiscal quarter of the Company after the Effective Date, which statements shall cover such
twelve-month periods;

          (n) cooperate with each seller of Registrable Securities covered by a Shelf Registration
Statement and each underwriter, if any, participating in the disposition of such Registrable
Securities and their respective counsel in connection with any filings required to be made with the
NASD;

          (o) take all other steps reasonably practicable to effect the registration of the Registrable
Securities covered by a Shelf Registration Statement contemplated hereby; and

          (p) the Company may require each seller of Registrable Securities as to which any
registration is being effected to furnish to it such information regarding such seller as may be
required by the staff of the SEC to be included in a Shelf Registration Statement; the Company may
exclude from such registration the Registrable Securities of any seller who fails to furnish such
information within a reasonable time after receiving such request; and the Company shall have no
obligation to register under the Securities Act the Registrable Securities of a seller who so fails
to furnish such information.

          Each Holder agrees that, upon receipt of written notice from the Company of the occurrence of
any event specified in Section 3(e)(ii), 3(e)(iii), 3(e)(v) or 3(e)(vi) hereof, such Holder will
forthwith discontinue disposition of Registrable Securities pursuant to a Shelf Registration
Statement until such Holder’s receipt of the copies of the supplemented or amended Prospectus
contemplated by Section 3(i) hereof or until it is advised in writing (the “Advice”) by the Company
that the use of the applicable Prospectus may be resumed, and, if so directed by the Company, such
Holder will deliver to the Company (at its expense) all copies in such Holder’s possession, other
than permanent file copies then in such Holder’s possession, of the Prospectus covering such
Registrable Securities current at the time of receipt of such notice. If the Company shall give any
such notice to suspend the disposition of Registrable Securities pursuant to a Shelf Registration
Statement, the Company shall use its reasonable best efforts to file and have declared effective
(if an amendment) as promptly as reasonably practicable after the resolution of the related matters
an amendment or supplement to the Shelf Registration Statement and related Prospectus.

13

 

     4. Indemnification and Contribution. (a) The Company hereby agrees to indemnify and hold
harmless the Initial Purchasers, each Holder, each underwriter who participates in an offering of
the Registrable Securities in accordance with Section 5 hereof, each Person, if any, who controls
any of such parties within the meaning of Section 15 of the Securities Act and Section 20 of the
Exchange Act and each of their respective directors, officers, employees and agents, as follows:

               (i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred,
arising out of any untrue statement or alleged untrue statement of a material fact contained in a
Shelf Registration Statement (or any amendment thereto) or the Prospectus (or any amendment or
supplement thereto) or the omission or alleged omission therefrom of a material
fact required to be stated therein, in the light of the circumstances under which they were made,
not misleading;

               (ii) against any and all loss, liability, claim, damage and expense whatsoever, as incurred,
to the extent of the aggregate amount paid in settlement of any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever
based upon any such untrue statement or omission referred to in Section 4(a)(1) above, or any such
alleged untrue statement or omission, provided that (subject to Section 4(d) hereof) such
settlement is effected with the prior written consent of the Company; and

               (iii) against any and all expenses whatsoever, as incurred (including the reasonable fees and
disbursements of counsel chosen by the Initial Purchasers or such Holder), reasonably incurred in
investigating, preparing or defending against any litigation, or any investigation or proceeding by
any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any
such untrue statement or omission referred to in Section 4(a)(1) above, or any such alleged untrue
statement or omission, to the extent that any such expense is not paid under subparagraph (i) or
(ii) of this Section 4(a);

provided, however, that this indemnity does not apply to any loss, liability, claim, damage or
expense to the extent arising out of an untrue statement or omission or alleged untrue statement or
omission made in reliance upon and in conformity with written information furnished in writing to
the Company by any Initial Purchaser through the Representative or such Holder or underwriter for
use in the Shelf Registration Statement (or any amendment thereto) or any Prospectus (or any
amendment or supplement thereto).

          (b) Each Initial Purchaser and each Holder or underwriter agrees, severally and not jointly,
to indemnify and hold harmless the Company, its directors and officers (including each officer of
the Company who signed the Shelf Registration Statement), and each Person, if any, who controls the
Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act
against any and all loss, liability, claim, damage and expense whatsoever described in the
indemnity contained in Section 4(a) hereof, as incurred, but only with respect to untrue statements
or omissions, or alleged untrue statements or omissions, made in the Shelf Registration Statement
(or any amendment thereto) or the Prospectus (or any amendment or supplement thereto) in reliance
upon and in conformity with written information furnished to the Company by such Initial Purchaser,
Holder or underwriter expressly for use in such Shelf Registration Statement (or any amendment
thereto) or such Prospectus (or any amendment or

14

 

supplement thereto); provided, however, that no Initial Purchaser, Holder or underwriter
shall be liable for any claims hereunder in excess of the amount of net proceeds received
by such Holder from the sale of Registrable Securities.

               (c) Each indemnified party shall give notice as promptly as reasonably practicable to each
indemnifying party of any action commenced against it in respect of which indemnity may be sought
hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party
from any liability which it may have under this Section 4 to the extent that it is not materially
prejudiced by such failure as a result thereof, and in any event shall not relieve it from
liability which it may have otherwise on account of this indemnity agreement. In the case of
parties indemnified pursuant to Section 4(a) or (b) above, counsel to the indemnified parties
shall be selected by such parties (subject to being reasonably acceptable to the indemnifying
party). An indemnifying party may participate at its own expense in the defense of such action;
provided, however, that counsel to the indemnifying party shall not (except with the consent of the
indemnified party, which shall not be unreasonably withheld) also be counsel to the indemnified
party. In no event shall the indemnifying parties be liable for the fees and expenses of more than
one counsel (in addition to local counsel), separate from their own counsel, for all indemnified
parties in connection with any one action or separate but similar or related actions in the same
jurisdiction arising out of the same general allegations or circumstances. No indemnifying party
shall, without the prior written consent of the indemnified parties, which shall not be
unreasonably withheld, settle or compromise or consent to the entry of any judgment with respect to
any litigation, or any investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever in respect of which indemnification or contribution could be
sought under this Section 4 (whether or not the indemnified parties are actual or potential parties
thereto), unless such settlement, compromise or consent (i) includes an unconditional written
release of each indemnified party from all liability arising out of such litigation, investigation,
proceeding or claim and (ii) does not include a statement as to or an admission of fault,
culpability or a failure to act by or on behalf of any indemnified party.

               (d) If at any time an indemnified party shall have validly requested an indemnifying party to
reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees
that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected
without its written consent if (i) such settlement is entered into more than 45 days after receipt
by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have
received notice of the terms of such settlement at least 30 days prior to such settlement being
entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in
accordance with such request prior to the date of such settlement.

               (e) In order to provide for just and equitable contribution in circumstances in which the
indemnity agreement set forth in this Section 4 is for any reason held to be unenforceable by an
indemnified party although applicable in accordance with its terms, the Company, on the one hand,
and the Initial Purchasers, the Holders and any underwriter, on the other hand, shall contribute to
the aggregate losses, liabilities, claims, damages and expenses of the nature contemplated by such
indemnity agreement incurred by the Company and the Holders, as incurred; provided, however, that
no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933
Act) shall be entitled to contribution from any Person that

15

 

was not guilty of such fraudulent misrepresentation. As between the Company, on the one hand, and the Initial Purchasers, the Holders
and any underwriter, on the other hand, such parties shall contribute to such aggregate losses,
liabilities, claims, damages and expenses of the nature contemplated by such indemnity agreement in
such proportion as shall be appropriate to reflect the relative fault of the Company, on the one
hand, and the Initial Purchasers, the Holders and any underwriter, on the other hand, with respect
to the statements or omissions which resulted in such loss, liability, claim, damage or expense, or
action in respect thereof, as well as any other relevant equitable considerations. The relative
fault of the Company, on the one hand, and of the Initial Purchasers, the Holders and any
underwriter, on the other hand, shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or alleged omission to
state a material fact relates to information supplied by
the Company, on the one hand, or by or on behalf of the Initial Purchasers, the Holders and any
underwriter, on the other, and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The Company, the Initial Purchasers,
the Holders and any underwriters agree that it would not be just and equitable if contribution
pursuant to this Section 4 were to be determined by pro rata allocation or by any other method of
allocation that does not take into account the relevant equitable considerations. For purposes of
this Section 4, each Affiliate of a Holder, and each director, officer and employee and Person, if
any, who controls a Holder or such Affiliate within the meaning of Section 15 of the Securities Act
shall have the same rights to contribution as such Holder, and each trustee and officer of the
Company, and each Person, if any, who controls the Company within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act shall have the same rights to contribution as the
Company.

     5. Underwritten Registration; Participation in Underwritings. No Holder may participate in
an underwritten registration hereunder unless such Holder (a) agrees to sell such Holder’s
Registrable Securities on the basis provided in the underwriting arrangement approved by the
Persons entitled hereunder to approve such arrangements and (b) completes and executes all
reasonable questionnaires, powers of attorney, indemnities, underwriting agreements, lock-up
letters and other documents reasonably required under the terms of such underwriting arrangements.

     6. Selection of Underwriters. The Holders of Registrable Securities covered by the Shelf
Registration Statement who desire to do so may sell the Securities covered by such Shelf
Registration in an underwritten offering, subject to the provisions of Sections 3(k) and 5 hereof.
In any such underwritten offering, the underwriter or underwriters and manager or managers that
will administer the offering will be selected by the Holders of a majority in aggregate principal
amount or number, as the context requires, of the Registrable Securities included in such offering;
provided, however, that such underwriters and managers must be reasonably satisfactory to the
Company.

     7. Miscellaneous.

          (a) Rule 144 and Rule 144A. If the Company ceases to be required to file reports under the
Securities Act and Section 13(a) or 15(d) of the Exchange Act and the rules and regulations adopted
by the SEC thereunder and any Registrable Securities remain outstanding, it will, upon

16

 

the request of any Holder (a) make publicly available such information as is necessary to permit sales of its
securities pursuant to Rule 144 under the Securities Act, (b) deliver such information to a
prospective purchaser as is necessary to permit sales of its securities pursuant to Rule 144A under
the Securities Act, and (c) take such further action that is reasonable in the circumstances, in
each case, to the extent required from time to time to enable such Holder to sell its Registrable
Securities without registration under the Securities Act within the limitation of the exemptions
provided by (i) Rule 144 under the Securities Act, as such rule may be amended from time to time,
(ii) Rule 144A under the Securities Act, as such rule may be amended from time to time, or (iii)
any similar rules or regulations hereafter adopted by the SEC. Upon the request of any Holder of
Registrable Securities, the Company will deliver to such Holder a written statement as to whether
it has complied with such requirements.

          (b) No Inconsistent Agreements. The Company has not entered into, and will not enter into,
any agreement which conflicts with the rights granted to the Holders of Registrable Securities in
this Agreement or otherwise conflicts with the provisions hereof. The rights granted to the Holders
hereunder do not in any way conflict with the rights granted to the holders of the Company’s other
issued and outstanding securities under any such agreements.

          (c) Amendments and Waivers. The provisions of this Agreement, including the provisions of
this sentence, may not be amended, modified or supplemented, and waivers or consents to departures
from the provisions hereof may not be given, unless the Company has obtained the written consent of
Holders of a majority in aggregate principal amount or number, as the context requires, of the
outstanding Registrable Securities affected by such amendment, modification, supplement, waiver or
departure; provided that no amendment, modification or supplement or waiver or consent to the
departure with respect to the provisions of Section 4 hereof shall be effective as against any
Holder of Registrable Securities unless consented to in writing by such Holder of Registrable
Securities. Notwithstanding the foregoing sentence, (i) this Agreement may be amended, without the
consent of any Holder of Registrable Securities, by written agreement signed by the Company and the
Initial Purchasers, to (x) cure any ambiguity, correct or supplement any provision of this
Agreement that may be inconsistent with any other provision of this Agreement or (y) to make any
other provisions with respect to matters or questions arising under this Agreement which shall not
be inconsistent with other provisions of this Agreement, which in the case of clause (y) does not
materially adversely affect any Holder of Registrable Securities, (ii) this Agreement may be
amended, modified or supplemented, and waivers and consents to departures from the provisions
hereof may be given, by written agreement signed by the Company and the Initial Purchasers to the
extent that any such amendment, modification, supplement, waiver or consent is, in their reasonable
judgment, necessary or appropriate to comply with applicable law (including any interpretation of
the Staff of the SEC) or any change therein and (iii) to the extent any provision of this Agreement
relates to the Initial Purchasers, such provision may be amended, modified or supplemented, and
waivers or consents to departures from such provisions may be given, by written agreement signed by
the Initial Purchasers and the Company.

          (d) Notices. All notices and other communications provided for or permitted hereunder shall
be made in writing by hand-delivery, registered first-class mail, telex, telecopier, or any courier
guaranteeing overnight delivery (i) if to a Holder, at the most current address given by

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such Holder to the Company by means of a notice given in accordance with the provisions of this Section
7(d), which address initially is, with respect to the Initial Purchasers, the respective addresses
set forth in the Purchase Agreement; and (ii) if to the Company, initially at the Company’s address
set forth in the Purchase Agreement and thereafter at such other address, notice of which is given
in accordance with the provisions of this Section 7(d).

          All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; five Business Days after being deposited in the mail,
postage prepaid, if mailed; when receipt is acknowledged, if telecopied; and on the next Business
Day, if timely delivered to an air courier guaranteeing overnight delivery.

          (e) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon
the successors, assigns and transferees of the Initial Purchasers, including, without limitation
and without the need for an express assignment, subsequent Holders; provided, however, that
nothing herein shall be deemed to permit any assignment, transfer or other disposition of
Registrable Securities in violation of the terms of the Purchase Agreement, the indenture relating
to the Notes or the articles of incorporation or bylaws of the Company, as amended. If any
transferee of any Holder shall acquire Registrable Securities, in any manner, whether by operation
of law or otherwise, such Registrable Securities shall be held subject to all of the terms of this
Agreement, and by taking and holding such Registrable Securities, such Person shall be conclusively
deemed to have agreed to be bound by and to perform all of the terms and provisions of this
Agreement and such Person shall be entitled to receive the benefits hereof.

          (f) Third Party Beneficiaries. Each Holder shall be a third party beneficiary of the
agreements made hereunder between the Company and the Initial Purchasers, and the Initial
Purchasers shall have the right to enforce such agreements directly to the extent it deems such
enforcement necessary or advisable to protect its rights or the rights of Holders hereunder.

          (g) Counterparts. This Agreement may be executed in any number of counterparts and by the
parties hereto in separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same agreement.

          (h) Headings. The headings in this Agreement are for convenience of reference only and shall
not limit or otherwise affect the meaning hereof.

          (i) GOVERNING LAW. THIS AGREEMENT SHALL BE DEEMED TO HAVE BEEN MADE IN THE STATE OF NEW YORK.
THE VALIDITY AND INTERPRETATION OF THIS AGREEMENT, AND THE TERMS AND CONDITIONS SET FORTH HEREIN,
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT
REGARD TO PRINCIPLES OF CONFLICTS OF LAWS THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER
THAN THE LAW OF THE STATE OF NEW YORK. EACH OF THE PARTIES HERETO AGREES TO SUBMIT TO THE EXCLUSIVE
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK IN ANY SUIT, ACTION OR PROCEEDING ARISING OUT
OF OR RELATING TO THIS AGREEMENT OR ANY OF THE MATTERS CONTEMPLATED

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HEREBY, IRREVOCABLY WAIVES ANY DEFENSE OF LACK OF PERSONAL JURISDICTION AND IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY
SUIT, ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT. EACH OF THE PARTIES
HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, ANY
OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF SUCH SUIT, ACTION OR
PROCEEDING BROUGHT IN ANY SUCH COURT AND ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT
IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

          (j) Severability. In the event that any one or more of the provisions contained herein, or
the application thereof in any circumstance, is held invalid, illegal or unenforceable, the
validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired thereby.

          (k) Securities Held by the Company or its Affiliates. Whenever the consent or approval of
Holders of a specified percentage of Registrable Securities is required hereunder, Registrable
Securities held by the Company or any Affiliates shall not be counted in determining whether such
consent or approval was given by the Holders of such required percentage.

[Signature Page Follows]

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     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first
written above.

	 	 	 	 	 
	 	Very truly yours,

RARE HOSPITALITY INTERNATIONAL, INC.

 	 
	 	By:  	/s/ Eugene I. Lee, Jr.
 	 
	 	 	Name:  	Eugene I. Lee, Jr. 	 
	 	 	Title:  	President, Chief Operating Officer, and Director 	 
	 

CONFIRMED AND ACCEPTED, as of the date first above written:

WACHOVIA CAPITAL MARKETS, LLC

RBC CAPITAL MARKETS CORPORATION

	 	 	 	 	 	 	 
	By:	 	WACHOVIA CAPITAL MARKETS, LLC
	 
	 	 	 	 	 	 
	By:	 	/s/ Michael Golden	 	 
	 	 	 	 	 
	 	 	Name:	 	Michael Golden
	 	 	Title:	 	Vice President and Assistant General Counsel

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