Document:

exv4w1

Exhibit 4.1

EXECUTION VERSION

 

ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.,

the Guarantors listed herein

and

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

as Trustee

INDENTURE

Dated as of May 10, 2011

6.25% Convertible Notes due 2018

 

 

 

	 	 	 	 	 

	ARTICLE 1 DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	Section 1.01. Definitions
	 	 	1	 
	Section 1.02. Incorporation by Reference of Trust Indenture Act
	 	 	15	 
	 
	 	 	 	 
	ARTICLE 2 ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF NOTES
	 	 	15	 
	 
	 	 	 	 
	Section 2.01. Designation and Amount
	 	 	15	 
	Section 2.02. Form of Notes
	 	 	16	 
	Section 2.03. Date and Denomination of Notes; Payments of Interest
	 	 	16	 
	Section 2.04. Payments of Rule 144 Additional Interest and Supplementary Interest
	 	 	18	 
	Section 2.05. Execution, Authentication and Delivery of Notes
	 	 	18	 
	Section 2.06. Exchange and Registration of Transfer of Notes; Restrictions on Transfer; Depositary
	 	 	19	 
	Section 2.07. Mutilated, Destroyed, Lost or Stolen Notes
	 	 	26	 
	Section 2.08. Temporary Notes
	 	 	27	 
	Section 2.09. Cancellation of Notes Paid, Etc.
	 	 	27	 
	Section 2.10. CUSIP Numbers
	 	 	27	 
	Section 2.11. Additional Notes
	 	 	27	 
	Section 2.12. Repurchases
	 	 	28	 
	 
	 	 	 	 
	ARTICLE 3 [INTENTIONALLY OMITTED]
	 	 	28	 
	 
	 	 	 	 
	ARTICLE 4 SATISFACTION AND DISCHARGE
	 	 	28	 
	 
	 	 	 	 
	Section 4.01. Satisfaction and Discharge
	 	 	28	 
	 
	 	 	 	 
	ARTICLE 5 PARTICULAR COVENANTS OF THE COMPANY
	 	 	28	 
	 
	 	 	 	 
	Section 5.01. Payment of Principal and Interest
	 	 	28	 
	Section 5.02. Maintenance of Office or Agency
	 	 	29	 
	Section 5.03. Appointments to Fill Vacancies in Trustee’s Office
	 	 	29	 
	Section 5.04. Provisions as to Paying Agent
	 	 	29	 
	Section 5.05. Existence
	 	 	30	 
	Section 5.06. Rule 144A Information Requirement and Annual Reports
	 	 	30	 
	Section 5.07. Stay, Extension and Usury Laws
	 	 	31	 
	Section 5.08. Compliance Certificate; Statements as to Defaults
	 	 	31	 
	Section 5.09. Rule 144 Additional Interest
	 	 	31	 
	Section 5.10. Further Instruments and Acts
	 	 	32	 

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	Section 5.11. Future Note Guarantors
	 	 	32	 
	 
	 	 	 	 
	ARTICLE 6 LISTS OF NOTEHOLDERS AND REPORTS BY THE COMPANY AND THE TRUSTEE
	 	 	32	 
	 
	 	 	 	 
	Section 6.01. Lists of Noteholders
	 	 	32	 
	Section 6.02. Preservation and Disclosure of Lists
	 	 	33	 
	Section 6.03. Reports by Trustee
	 	 	33	 
	 
	 	 	 	 
	ARTICLE 7 DEFAULTS AND REMEDIES
	 	 	33	 
	 
	 	 	 	 
	Section 7.01. Events of Default
	 	 	33	 
	Section 7.02. Payments of Notes on Default; Suit Therefor
	 	 	37	 
	Section 7.03. Application of Monies Collected by Trustee
	 	 	38	 
	Section 7.04. Proceedings by Noteholders
	 	 	39	 
	Section 7.05. Proceedings by Trustee
	 	 	40	 
	Section 7.06. Remedies Cumulative and Continuing
	 	 	40	 
	Section 7.07. Direction of Proceedings and Waiver of Defaults by Majority of Noteholders
	 	 	40	 
	Section 7.08. Notice of Defaults
	 	 	41	 
	Section 7.09. Undertaking to Pay Costs
	 	 	41	 
	 
	 	 	 	 
	ARTICLE 8 CONCERNING THE TRUSTEE
	 	 	41	 
	 
	 	 	 	 
	Section 8.01. Duties and Responsibilities of Trustee
	 	 	41	 
	Section 8.02. Reliance on Documents, Opinions, Etc.
	 	 	43	 
	Section 8.03. No Responsibility for Recitals, Etc.
	 	 	44	 
	Section 8.04. Trustee, Paying Agents, Conversion Agents or Registrar May Own Notes
	 	 	44	 
	Section 8.05. Monies to Be Held in Trust
	 	 	45	 
	Section 8.06. Compensation and Expenses of Trustee
	 	 	45	 
	Section 8.07. Officers’ Certificate as Evidence
	 	 	45	 
	Section 8.08. Conflicting Interests of Trustee
	 	 	46	 
	Section 8.09. Eligibility of Trustee
	 	 	46	 
	Section 8.10. Resignation or Removal of Trustee
	 	 	46	 
	Section 8.11. Acceptance by Successor Trustee
	 	 	47	 
	Section 8.12. Succession by Merger, Etc.
	 	 	48	 
	Section 8.13. Limitation on Rights of Trustee as Creditor
	 	 	48	 
	Section 8.14. Trustee’s Application for Instructions from the Company
	 	 	48	 

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	ARTICLE 9 CONCERNING THE NOTEHOLDERS
	 	 	49	 
	 
	 	 	 	 
	Section 9.01. Action by Noteholders
	 	 	49	 
	Section 9.02. Proof of Execution by Noteholders
	 	 	49	 
	Section 9.03. Who Are Deemed Absolute Owners
	 	 	49	 
	Section 9.04. Company-Owned Notes Disregarded
	 	 	50	 
	Section 9.05. Revocation of Consents; Future Noteholders Bound
	 	 	50	 
	 
	 	 	 	 
	ARTICLE 10 NOTEHOLDERS’ MEETINGS
	 	 	51	 
	 
	 	 	 	 
	Section 10.01. Purpose of Meetings
	 	 	51	 
	Section 10.02. Call of Meetings by Trustee
	 	 	51	 
	Section 10.03. Call of Meetings by Company or Noteholders
	 	 	51	 
	Section 10.04. Qualifications for Voting
	 	 	51	 
	Section 10.05. Regulations
	 	 	52	 
	Section 10.06. Voting
	 	 	52	 
	Section 10.07. No Delay of Rights by Meeting
	 	 	53	 
	 
	 	 	 	 
	ARTICLE 11 SUPPLEMENTAL INDENTURES
	 	 	53	 
	 
	 	 	 	 
	Section 11.01. Supplemental Indentures Without Consent of Noteholders
	 	 	53	 
	Section 11.02. Supplemental Indentures With Consent of Noteholders
	 	 	54	 
	Section 11.03. Effect of Supplemental Indentures
	 	 	55	 
	Section 11.04. Notation on Notes
	 	 	55	 
	Section 11.05. Evidence of Compliance of Supplemental Indenture to Be Furnished Trustee
	 	 	55	 
	 
	 	 	 	 
	ARTICLE 12 CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE
	 	 	56	 
	 
	 	 	 	 
	Section 12.01. Company May Consolidate, Etc. on Certain Terms
	 	 	56	 
	Section 12.02. Successor Corporation to Be Substituted
	 	 	56	 
	Section 12.03. Opinion of Counsel to Be Given Trustee
	 	 	57	 
	 
	 	 	 	 
	ARTICLE 13 IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS
	 	 	57	 
	 
	 	 	 	 
	Section 13.01. Indenture and Notes Solely Corporate Obligations
	 	 	57	 
	 
	 	 	 	 
	ARTICLE 14 [INTENTIONALLY OMITTED]
	 	 	58	 
	 
	 	 	 	 
	ARTICLE 15 CONVERSION OF NOTES
	 	 	58	 
	 
	 	 	 	 
	Section 15.01. Conversion Privilege
	 	 	58	 
	Section 15.02. Conversion Procedure
	 	 	60	 

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	     Section 15.03. Increased Conversion Rate Applicable to Certain Notes Surrendered in Connection with Make-Whole Fundamental Changes
	 	 	65	 
	Section 15.04. Adjustment of Conversion Rate
	 	 	67	 
	Section 15.05. [Reserved]
	 	 	77	 
	Section 15.06. Effect of Reclassification, Consolidation, Merger or Sale
	 	 	77	 
	Section 15.07. Certain Covenants
	 	 	80	 
	Section 15.08. Responsibility of Trustee
	 	 	81	 
	Section 15.09. Notice to Noteholders Prior to Certain Actions
	 	 	81	 
	Section 15.10. Stockholder Rights Plans
	 	 	82	 
	Section 15.11. Exchange in Lieu of Conversion
	 	 	83	 
	Section 15.12. Limitations Relating to the NASDAQ Shareholder Approval Requirements
	 	 	83	 
	 
	 	 	 	 
	ARTICLE 16 SUBORDINATION
	 	 	83	 
	 
	 	 	 	 
	Section 16.01. Agreement to Subordinate
	 	 	83	 
	Section 16.02. Liquidation, Dissolution, Bankruptcy
	 	 	84	 
	Section 16.03. Default on Senior Credit Facility and Hedging Obligations
	 	 	84	 
	Section 16.04. Acceleration of Payment of Notes
	 	 	85	 
	Section 16.05. When Distribution Must Be Paid Over
	 	 	85	 
	Section 16.06. Subrogation
	 	 	85	 
	Section 16.07. Relative Rights
	 	 	86	 
	Section 16.08. Subordination May Not Be Impaired by Company
	 	 	86	 
	Section 16.09. Rights of Trustee and Paying Agent
	 	 	86	 
	Section 16.10. Distribution or Notice to Representative
	 	 	86	 
	Section 16.11. Article 16 Not to Prevent Events of Default or Limit Right to Accelerate
	 	 	86	 
	Section 16.12. [Reserved]
	 	 	86	 
	Section 16.13. Trustee Entitled to Rely
	 	 	86	 
	Section 16.14. Trustee to Effectuate Subordination
	 	 	87	 
	Section 16.15. Trustee Not Fiduciary for Lenders or Counterparties
	 	 	87	 
	Section 16.16. Reliance by Lenders and Counterparties on Subordination Provisions
	 	 	87	 
	 
	 	 	 	 
	ARTICLE 17 NOTE GUARANTEES
	 	 	88	 
	 
	 	 	 	 
	Section 17.01. Note Guarantees
	 	 	88	 

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	Section 17.02. Limitation on Liability
	 	 	90	 
	Section 17.03. Release of Guarantor
	 	 	90	 
	Section 17.04. Successors and Assigns
	 	 	90	 
	Section 17.05. No Waiver
	 	 	91	 
	Section 17.06. Modification
	 	 	91	 
	Section 17.07. Execution of Amendment or Supplemental Indenture for Future Note Guarantors
	 	 	91	 
	Section 17.08. Non-Impairment
	 	 	91	 
	 
	 	 	 	 
	ARTICLE 18 SUBORDINATION OF THE NOTE GUARANTEES
	 	 	91	 
	 
	 	 	 	 
	Section 18.01. Agreement to Subordinate
	 	 	91	 
	Section 18.02. Liquidation, Dissolution, Bankruptcy
	 	 	92	 
	Section 18.03. Default on Senior Credit Facility or Hedging Obligations of a Note Guarantor
	 	 	92	 
	Section 18.04. Demand for Payment
	 	 	93	 
	Section 18.05. When Distribution Must Be Paid Over
	 	 	93	 
	Section 18.06. Subrogation
	 	 	93	 
	Section 18.07. Relative Rights
	 	 	94	 
	Section 18.08. Subordination May Not Be Impaired by a Note Guarantor
	 	 	94	 
	Section 18.09. Rights of Trustee and Paying Agent
	 	 	94	 
	Section 18.10. Distribution or Notice to Representative
	 	 	94	 
	Section 18.11. Article 18 Not to Prevent Events of Default or Limit Right to Accelerate
	 	 	94	 
	Section 18.12. Trustee Entitled to Rely
	 	 	95	 
	Section 18.13. Trustee to Effectuate Subordination
	 	 	95	 
	Section 18.14. Trustee Not Fiduciary for Lenders or Counterparties
	 	 	95	 
	Section 18.15. Reliance by Lenders and Counterparties on Subordination Provisions
	 	 	95	 
	 
	 	 	 	 
	ARTICLE 19 REPURCHASE OF NOTES AT OPTION OF NOTEHOLDERS
	 	 	96	 
	 
	 	 	 	 
	Section 19.01. [Reserved]
	 	 	96	 
	Section 19.02. Repurchase at Option of Noteholders upon a Fundamental Change
	 	 	96	 
	Section 19.03. Withdrawal of Fundamental Change Repurchase Notice
	 	 	98	 
	Section 19.04. Deposit of Fundamental Change Repurchase Price
	 	 	99	 
	 
	 	 	 	 
	ARTICLE 20 MISCELLANEOUS PROVISIONS
	 	 	100	 

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	Section 20.01. Provisions Binding on Company’s Successors
	 	 	100	 
	Section 20.02. Official Acts by Successor Corporation
	 	 	100	 
	Section 20.03. Addresses for Notices, Etc.
	 	 	100	 
	Section 20.04. Governing Law
	 	 	101	 
	Section 20.05. Evidence of Compliance with Conditions Precedent; Certificates and Opinions of Counsel to Trustee
	 	 	101	 
	Section 20.06. Legal Holidays
	 	 	101	 
	Section 20.07. No Security Interest Created
	 	 	101	 
	Section 20.08. Trust Indenture Act
	 	 	102	 
	Section 20.09. Benefits of Indenture
	 	 	102	 
	Section 20.10. Table of Contents, Headings, Etc.
	 	 	102	 
	Section 20.11. Authenticating Agent
	 	 	102	 
	Section 20.12. Execution in Counterparts
	 	 	103	 
	Section 20.13. Severability
	 	 	103	 
	Section 20.14. Waiver of Jury Trial
	 	 	103	 
	Section 20.15. Force Majeure
	 	 	103	 
	Section 20.16. No Optional Redemption; No Defeasance
	 	 	104	 
	Section 20.17. Calculations
	 	 	104	 
	 
	 	 	 	 
	EXHIBITS
	 	 	 	 
	 
	 	 	 	 
	Exhibit A Form of Note
	 	 	A-1	 
	Exhibit B Form of Notice of Conversion
	 	 	B-1	 
	Exhibit C Form of Fundamental Change Repurchase Notice
	 	 	C-1	 
	Exhibit D Form of Assignment and Transfer
	 	 	D-1	 

vii

 

          INDENTURE, dated as of May 10, 2011, among Alaska Communications Systems Group, Inc., a
Delaware corporation, as issuer (hereinafter sometimes called the “Company”, as more fully set
forth in Section 1.01), the guarantors party hereto (the “Guarantors”), and The Bank of New York
Mellon Trust Company, N.A., a national banking association, as trustee (hereinafter sometimes
called the “Trustee”, as more fully set forth in Section 1.01).

WITNESSETH:

          WHEREAS, for its lawful corporate purposes, the Company has duly authorized the issue of its
6.25% Convertible Notes due 2018 (hereinafter sometimes called the “Notes”), initially in an
aggregate principal amount not to exceed $120,000,000, and in order to provide the terms and
conditions upon which the Notes are to be authenticated, issued and delivered, the Company has duly
authorized the execution and delivery of this Indenture; and

          WHEREAS, the Form of Note, the certificate of authentication to be borne by each Note, the
Form of Notice of Conversion, the Form of Fundamental Change Repurchase Notice and the Form of
Assignment and Transfer to be borne by the Notes are to be substantially in the forms hereinafter
provided for; and

          WHEREAS, all acts and things necessary to make the Notes, when executed by the Company and
authenticated and delivered by the Trustee or a duly authorized authenticating agent, as in this
Indenture provided, the valid, binding and legal obligations of the Company, and to constitute
these presents a valid, binding and legal agreement according to its terms, have been done and
performed, and the execution of this Indenture and the issue hereunder of the Notes have in all
respects been duly authorized.

          NOW, THEREFORE, THIS INDENTURE WITNESSETH:

          That in order to declare the terms and conditions upon which the Notes are, and are to be,
authenticated, issued and delivered, and in consideration of the premises and of the purchase and
acceptance of the Notes by the holders thereof, the Company covenants and agrees with the Trustee
for the equal and proportionate benefit of the respective holders from time to time of the Notes
(except as otherwise provided below), as follows:

ARTICLE 1

DEFINITIONS

          Section 1.01. Definitions. The terms defined in this Section 1.01 (except as herein otherwise
expressly provided or unless the context otherwise requires) for all purposes of this Indenture and
of any indenture supplemental hereto shall have the respective meanings specified in this Section
1.01. All other terms used in this Indenture that are defined in the Trust Indenture Act or that
are by reference therein defined in the Securities Act (except as herein otherwise expressly
provided or unless the context otherwise requires) shall have the meanings assigned to such terms
in said Trust Indenture Act and in said Securities Act as in force at the date of `the execution of
this Indenture. The words “herein,” “hereof,” “hereunder,” and words

1

 

`of similar import refer to this Indenture as a whole and not to any particular Article,
Section or other subdivision. The terms defined in this Article include the plural as well as the
singular.

          “Additional Notes” shall have the meaning specified in Section 2.11.

          “Administrative Agent” means the JPMorgan Chase Bank, N.A., or such other financial
institution named as administrative agent under the Senior Credit Facility.

          “Affiliate” of any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For the
purposes of this definition, “control,” when used with respect to any specified Person means the
power to direct or cause the direction of 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.

          “Bid Solicitation Agent” means an independent nationally recognized investment bank selected
by the Company to solicit market bid quotations for the Notes.

          “Blockage Notice” shall have the meaning specified in Section 16.03.

          “Board of Directors” means the board of directors of the Company or a committee of such board
duly authorized to act for it hereunder.

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

          “Business Day” means any day, other than a Saturday or Sunday, that is neither a legal holiday
nor a day on which commercial banks are authorized or required by law, regulation or executive
order to close in New York City.

          “Capital Stock” means, for any entity, any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in (however designated)
stock issued by that entity.

          “Cash Settlement Averaging Period” means the 40 consecutive VWAP Trading Day period:

     (a) if the conversion date occurs during the period beginning on, and
including, February 1, 2018, beginning on, and including, the 42nd Scheduled VWAP
Trading Day immediately preceding the Maturity Date; and

     (b) in all other cases, beginning on, and including, the third VWAP Trading Day
immediately following the Conversion Date.

          “Common Equity” of any Person means Capital Stock of such Person that is generally entitled
(a) to vote in the election of directors of such Person or (b) if such Person is

2

 

not a corporation, to vote or otherwise participate in the selection of the governing body,
partners, managers or others that will control the management or policies of such Person.

          “Common Stock” means, subject to Section 15.06, shares of common stock of the Company, par
value $0.01 per share, at the date of this Indenture or shares of any class or classes resulting
from any reclassification or reclassifications thereof and that have no preference in respect of
dividends or of amounts payable in the event of any voluntary or involuntary liquidation,
dissolution or winding up of the Company and that are not subject to redemption by the Company;
provided that if at any time there shall be more than one such resulting class, the shares of each
such class then so issuable shall be substantially in the proportion that the total number of
shares of such class resulting from all such reclassifications bears to the total number of shares
of all such classes resulting from all such reclassifications.

          “Company” means Alaska Communications Systems Group, Inc., a Delaware corporation, and subject
to the provisions of Article 12, shall include its successors and assigns.

          “Company Order” means a written order of the Company, signed by:

     (a) the Company’s Chief Executive Officer, President, Executive or Senior Vice
President, Managing Director or any Vice President (whether or not designated by a
number or numbers or word or words added before or after the title “Vice
President”); and

     (b) any such other officer designated in clause (a) of this definition or the
Company’s Treasurer or Assistant Treasurer or Secretary or any Assistant Secretary,

and delivered to the Trustee.

          “Conversion Agent” shall have the meaning specified in Section 5.02.

          “Conversion Date” shall have the meaning specified in Section 15.02(e).

          “Conversion Obligation” shall have the meaning specified in Section 15.01(a).

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

          “Conversion Rate” shall have the meaning specified in Section 15.01(a).

          “Conversion Trigger Price” shall have the meaning specified in Section 15.01(b)(iv).

          “Corporate Trust Office” means the principal office of the Trustee at which at any time its
corporate trust business shall be administered, which office at the dated hereof is located at 700
South Flower Street, Suite 500, Los Angeles, CA 90017, Attention: Corporate Unit, or such other
address as the Trustee may designate from time to time by notice to the Noteholders and the
Company, or the principal corporate trust office of any successor Trustee (or

3

 

such other address as such successor Trustee may designate from time to time by notice to the
Noteholders and the Company).

          “Counterparty” means the counterparties to the Company or any of its Affiliates under the
Hedging Obligations.

          “Custodian” means The Bank of New York Mellon Trust Company, N.A., as custodian for The
Depository Trust Company, with respect to the Global Notes, or any successor entity thereto.

          “Daily Conversion Value” means, for each of the 40 consecutive VWAP Trading Days during the
Cash Settlement Averaging Period, one-fortieth (1/40th) of the product of: (a) the
applicable Conversion Rate on such VWAP Trading Day and (b) the VWAP of the Common Stock on such
VWAP Trading Day.

          “Daily Measurement Value” is equal to the Specified Dollar Amount, divided by 40.

          “Daily Settlement Amount,” for each of the 40 consecutive VWAP Trading Days during the Cash
Settlement Averaging Period, shall consist of:

     (a) cash equal to the lesser of the Daily Measurement Value and the Daily
Conversion Value for such Trading Day; and

     (b) if such Daily Conversion Value for such Trading Day exceeds the Daily
Measurement Value, a number of shares of Common Stock equal to the Daily Share
Amount.

          “Daily Share Amount” means, if the Daily Conversion Value exceeds the Daily Measurement Value
on the applicable VWAP Trading Day, a number of shares of Common Stock equal to (i) the difference
between the Daily Conversion Value and the Daily Measurement Value, divided by (ii) the VWAP of the
Common Stock for such VWAP Trading Day.

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

          “Defaulted Interest” means any interest on any Note that is payable, but is not punctually
paid or duly provided for, on any May 1 or November 1.

          “Depositary” means, with respect to the Global Notes the Person specified in Section 2.06 as
the Depositary with respect to such Notes, until a successor shall have been appointed and become
such pursuant to the applicable provisions of this Indenture, and thereafter, “Depositary” shall
mean or include such successor.

          “Designated Institution” shall have the meaning specified in Section 15.11.

          “Distributed Property” shall have the meaning specified in Section 15.04(c).

4

 

          “Domestic Subsidiary” means any direct or indirect Subsidiary of the Company that is organized
under the laws of the United States, any state or possession thereof or the District of Columbia.

          “Effective Date” means the date on which a Make-Whole Fundamental Change occurs or becomes
effective.

          “Event of Default” shall have the meaning specified in Section 7.01.

          “Ex-Dividend Date” means, with respect to any issuance, dividend or distribution in which the
holders of Common Stock (or other security) have the right to receive any cash, securities or other
property, the first date on which the shares of the Common Stock (or other security) trade on the
applicable exchange or in the applicable market, regular way, without the right to receive the
issuance, dividend or distribution in question, provided that, solely for the purposes of Section
15.04(b), (c) and (d), and only when the Company elects to settle a Conversion Obligation solely in
shares of its Common Stock, if such date falls after the applicable Record Date for the issuance,
dividend or distribution in question, then references to the Ex-Dividend Date (or in the case of a
Spin-Off, the date on which the adjustment to the Conversion Rate takes effect) will be deemed to
be to such Record Date.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

          “Exchange Election” shall have the meaning specified in Section 15.11.

          “Fiscal Quarter” means a fiscal quarter of any Fiscal Year.

          “Fiscal Year” means a fiscal year of the Company.

          “Fundamental Change” will be deemed to have occurred at the time after the original issuance
of the Notes that any of the following events occurs:

     (a) any “person” or “group” (within the meaning of Section 13(d) of the
Exchange Act) other than the Company or its Subsidiaries files a Schedule TO or any
schedule, form or report under the Exchange Act disclosing that such person or group
has become the direct or indirect “beneficial owner,” as defined in Rule 13d-3 under
the Exchange Act, of the Company’s Common Equity representing more than 50% of the
voting power of the Company’s Common Equity;

     (b) consummation of (i) any binding share exchange, consolidation or merger of
the Company pursuant to which the Common Stock will be converted into cash,
securities or other property, or (ii) any sale, conveyance, transfer, lease or other
disposition in one transaction or a series of transactions of all or substantially
all of the consolidated assets of the Company and its Subsidiaries, taken as a
whole, to any Person other than one of the Company’s Subsidiaries, provided,
however, that in the cause of clause (i) any transaction pursuant to which holders
of the Company’s Capital Stock immediately prior to the

5

 

transaction have the entitlement to exercise, directly or indirectly, more than
50% of the total voting power of all shares of Capital Stock entitled to vote
generally in elections of directors of the continuing or surviving or successor
person immediately after giving effect to such transaction shall not be a
“Fundamental Change”;

     (c) the stockholders of the Company approve any plan or proposal for the
liquidation or dissolution of the Company; or

     (d) the Common Stock ceases to be listed on a United States national or
regional securities exchange,

provided, however, in the case of a transaction or event described in clause (a) or (b) above, a
Fundamental Change shall not be deemed to have occurred if at least 90% of the consideration,
excluding cash payments for fractional shares, in the transaction or transactions otherwise
constituting the Fundamental Change consists of shares of Publicly Traded Securities, and as a
result of such transaction or transactions, the Notes become convertible into or based on such
Publicly Traded Securities, excluding cash payments for fractional shares (subject to the
provisions of Section 15.02(b)).

          “Fundamental Change Company Notice” shall have the meaning specified in Section 19.02(b).

          “Fundamental Change Expiration Time” shall have the meaning specified in Section 19.02(a)(i).

          “Fundamental Change Repurchase Date” shall have the meaning specified in Section 19.02(a).

          “Fundamental Change Repurchase Notice” shall have the meaning specified in Section
19.02(a)(i).

          “Fundamental Change Repurchase Price” shall have the meaning specified in Section 19.02(a).

          “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 Financial Accounting Standards Board, and (3) such other
statements by such other entity as approved by a significant segment of the accounting profession.

          “Global Note” shall have the meaning specified in Section 2.06(b).

          “Guarantee” means any obligation, contingent or otherwise, of any Person directly or
indirectly guaranteeing any Indebtedness of any other Person and any obligation, direct or
indirect, contingent or otherwise, of such Person (a) to purchase or pay (or advance or supply
funds for the purchase or payment of) such Indebtedness of such other Person (whether

6

 

arising by virtue of partnership arrangements, or by agreement to keep-well, to purchase
assets, goods, securities or services, to take-or-pay, or to maintain financial statement
conditions or otherwise) or (b) entered into for purposes of assuring in any other manner the
obligee of such Indebtedness of the payment thereof or to protect such obligee against loss in
respect thereof (in whole or in part); provided, however, that the term “Guarantee” shall not
include endorsements for collection or deposit in the ordinary course of business. The term
“Guarantee” used as a verb has a corresponding meaning. The term “Guarantor” shall mean any Person
Guaranteeing any Indebtedness.

              “Guarantee Blockage Notice” shall have the meaning specified in Section 18.03.

          “Guarantee Payment Blockage Period” shall have the meaning specified in Section 18.03.

          “Guaranteed Obligations” shall have the meaning specified in Section 17.01(a).

          “Hedging Obligations” means any interest rate protection agreement, foreign currency exchange
agreement, commodity price protection agreement or other interest or currency exchange rate or
commodity price hedging arrangement to which Alaska Communications Systems Holdings, Inc., a
wholly-owned Subsidiary of the Company, and any of the Lenders or any of their respective
Affiliates are parties.

          “Indebtedness,” when used with respect to any Person, and without duplication means:

     (a) all indebtedness, obligations and other liabilities (contingent or
otherwise) of such Person for borrowed money (including obligations of such person
in respect of overdrafts and any loans or advances from banks, whether or not
evidenced by notes or similar instruments) or evidenced by bonds, notes or other
instruments for the payment of money, or incurred in connection with the acquisition
of any property, services or assets (whether or not the recourse of the lender is to
the whole of the assets of such Person or to only a portion thereof), other than any
account payable or other accrued current liability or obligation to trade creditors
incurred in the ordinary course of business in connection with the obtaining of
materials or services;

     (b) all reimbursement obligations and other liabilities (contingent or
otherwise) of such Person with respect to letters of credit, bank guarantees,
bankers’ acceptances, surety bonds, performance bonds or other guaranty of
contractual performance;

     (c) all obligations and liabilities (contingent or otherwise) in respect of (a)
leases of such Person required, in conformity with GAAP, to be accounted for as
capitalized lease obligations on the balance sheet of such Person and (b) any lease
or related documents, including a purchase agreement, in connection with the lease
of real property which provides that such Person is contractually obligated to
purchase or cause a third party to purchase the leased property and thereby
guarantee a minimum residual value of the leased property to the landlord

7

 

and the obligations of such Person under such lease or related document to
purchase or to cause a third party to purchase the leased property;

     (d) all obligations of such Person (contingent or otherwise) with respect to an
interest rate or other swap, cap or collar agreement or other similar instrument or
agreement or foreign currency hedge, exchange, purchase or similar instrument or
agreement;

     (e) all direct or indirect guaranties or similar agreements by such Person in
respect of, and obligations or liabilities (contingent or otherwise) of such Person
to purchase or otherwise acquire or otherwise assure a creditor against loss in
respect of, indebtedness, obligations or liabilities of another Person of the kind
described in clauses (a) through (d);

     (f) any indebtedness or other obligations described in clauses (a) through (d)
secured by any mortgage, pledge, lien or other encumbrance existing on property
which is owned or held by such Person, regardless of whether the indebtedness or
other obligation secured thereby shall have been assumed by such Person; and

     (g) any and all deferrals, renewals, extensions, refinancings, replacements,
restatements and refundings of, or amendments, modifications or supplements to, any
indebtedness, obligation or liability of the kind described in clauses (a) through
(d).

          “Indenture” means this instrument as originally executed or, if amended or supplemented as
herein provided, as so amended or supplemented.

          “Initial Dividend Threshold” means initially $0.215 per share of Common Stock, subject to
adjustment in accordance with Section 15.04(d).

          “Interest Payment Date” means each May 1 and November 1 of each year, beginning on November 1,
2011.

          “Interest Record Date,” with respect to any Interest Payment Date, shall mean the April 15 or
October 15 (whether or not such day is a Business Day) immediately preceding the applicable May 1
or November 1 Interest Payment Date, respectively.

          “Last Reported Sale Price” of the Common Stock on any Trading Day means:

     (a) the closing sale price per share (or if no closing sale price is reported,
the average of the bid and ask prices or, if more than one in either case, the
average of the average bid and the average ask prices) on that date as reported in
composite transactions for the principal U.S. national or regional securities
exchange on which the Common Stock is listed for trading;

     (b) if the Common Stock is not listed for trading on a U.S. national or
regional securities exchange on the relevant date, the last quoted bid price for the

8

 

Common Stock in the over-the-counter market on the relevant date as reported by
OTC Markets Group Inc. or similar organization; or

     (c) if the Common Stock is not so listed or quoted, the average of the
mid-point of the last bid and ask prices for the Common Stock on the relevant date
from each of at least three nationally recognized independent investment banking
firms selected by the Company for this purpose.

In all cases, the “Last Reported Sale Price” will be determined without reference to early hours,
after hours or extended market trading.

          “Lender” means any lender under the Senior Credit facility.

          “Lien” means any mortgage, pledge, security interest, encumbrance, lien or charge of any kind
(including any conditional sale or other title retention agreement or lease in the nature thereof).

          “Make-Whole Conversion Rate Adjustment” shall have the meaning specified in Section 15.03(a).

          “Make-Whole Fundamental Change” means any transaction or event that constitutes a Fundamental
Change occurring as a result of a transaction described in clause (a) or (b) of the definition
thereof (without regard to the proviso in clause (b) thereof).

          “Maturity Date” means May 1, 2018.

          “Measurement Period” shall have the meaning specified in Section 15.01(b)(i).

          “Merger Event” shall have the meaning specified in Section 15.06.

          “Note” or “Notes” shall mean any note or notes, as the case may be, authenticated and
delivered under this Indenture.

          “Noteholder” as applied to any Note, or other similar terms (but excluding the term
“beneficial holder”), shall mean any person in whose name at the time a particular Note is
registered on the Note Register.

          “Note Guarantee” means each Guarantee of the obligations with respect to the Notes issued by a
Subsidiary of the Company pursuant to the terms of this Indenture.

          “Note Guarantor” means any Subsidiary that has issued a Note Guarantee.

          “Note Register” shall have the meaning specified in Section 2.06(a).

          “Note Registrar” shall have the meaning specified in Section 2.06(a).

          “Notice of Conversion” shall have the meaning specified in Section 15.02(d).

          “Offering Memorandum” means the final offering memorandum dated May 4,

9

 

2011 relating to the offering and sale of the Notes.

          “Officer” means, with respect to the Company, the President, the Chief Executive Officer, the
Treasurer, the Secretary, any Executive or Senior Vice President, Managing Director or any Vice
President (whether or not designated by a number or numbers or word added before or after the title
“Vice President”).

          “Officers’ Certificate,” when used with respect to the Company, means a certificate signed by
(a) one Officer of the Company and (b) another officer of the Company or one of the Treasurer or
any Assistant Treasurer, Secretary or any Assistant Secretary or Controller of the Company that is
delivered to the Trustee. Each such certificate shall include the statements provided for in
Section 20.05 if and to the extent required by the provisions of such Section. One of the officers
giving an Officers’ Certificate pursuant to Section 5.08 shall be the principal executive,
financial or accounting officer of the Company.

          “Opinion of Counsel” means an opinion in writing signed by legal counsel, who may be an
employee of or counsel to the Company, or other counsel that is delivered to the Trustee. Each
such opinion shall include the statements provided for in Section 20.05.

          “outstanding,” when used with reference to Notes, shall, subject to the provisions of Section
9.04, mean, as of any particular time, all Notes authenticated and delivered by the Trustee under
this Indenture, except:

     (a) Notes theretofore canceled by the Trustee or accepted by the Trustee for
cancellation;

     (b) Notes, or portions thereof, for the payment or repurchase of which monies
in the necessary amount shall have been deposited in trust with the Trustee or with
any Paying Agent (other than the Company) or shall have been set aside and
segregated in trust by the Company (if the Company shall act as its own Paying
Agent); provided that if any such Note is repurchased, the holder thereof shall have
delivered a Fundamental Change Repurchase Notice in accordance with Section 19.02;

     (c) Notes that have been paid pursuant to Section 2.07 or Notes in lieu of
which, or in substitution for which, other Notes shall have been authenticated and
delivered pursuant to the terms of Section 2.07 unless proof satisfactory to the
Trustee is presented that any such Notes are held by protected purchasers in due
course; and

     (d) Notes converted pursuant to Article 15.

          “pay its Guarantee” shall have the meaning specified in Section 18.03.

          “pay the Notes” shall have the meaning specified in Section 16.03.

          “Paying Agent” shall have the meaning specified in Section 5.02.

10

 

          “Payment Blockage Period” shall have the meaning specified in Section 16.03.

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

          “Predecessor Note” of any particular Note means every previous Note evidencing all or a
portion of the same debt as that evidenced by such particular Note; and, for the purposes of this
definition, any Note authenticated and delivered under Section 2.07 in lieu of or in exchange for a
mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same debt as the
mutilated, lost, destroyed or stolen Note that it replaces.

          “Publicly Traded Securities” means shares of common stock that are traded on a national
securities exchange or that will be so traded when issued or exchanged in connection with a
transaction described in clause (a) or (b) of the definition of Fundamental Change.

          “Record Date” shall have the meaning specified in Section 15.04(f).

          “Reference Property” shall have the meaning specified in Section 15.06(b).

          “Representative” means any administrative agent or representative (if any) under the Senior
Credit Facility or the Hedging Obligations.

          “Resale Restriction Termination Date” shall have the meaning specified in Section 2.06(d).

          “Responsible Officer” means, when used with respect to the Trustee, any officer within the
corporate trust department of the Trustee, including any vice president, assistant vice president,
assistant secretary, assistant treasurer, trust officer or any other officer of the Trustee who
customarily performs functions similar to those performed by the Persons who at the time shall be
such officers, respectively, or to whom any corporate trust matter is referred because of such
person’s knowledge of and familiarity with the particular subject and who shall have direct
responsibility for the administration of this Indenture.

          “Restricted Securities” shall have the meaning specified in Section 2.06(d).

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

          “Rule 144 Additional Interest” shall have the meaning specified in Section 5.09(a).

          “Scheduled Trading Day” means any day that is scheduled to be a Trading Day on the primary
U.S. national securities exchange or market on which the Common Stock is listed or admitted for
trading. If the Common Stock is not so listed or admitted for trading, “Scheduled Trading Day”
means a Business Day.

          “Scheduled VWAP Trading Day” means any day that is scheduled to be a VWAP Trading Day.

11

 

          “SEC” means the Securities and Exchange Commission.

          “Secured Indebtedness” means any indebtedness of the Company secured by a Lien. “Secured
Indebtedness” of a Note Guarantor has a correlative meaning.

          “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

          “Senior Credit Facility” means the credit agreement dated as of October 21, 2010, among Alaska
Communications Systems Holdings, Inc., the Company, the lenders and other financial institutions
from time to time party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, together
with the related documents thereto (including, without limitation, any guarantee agreements and
security documents), in each case as such agreements may be amended (including any amendment and
restatement thereof), supplemented or otherwise modified or replaced from time to time by one or
more credit and/or other agreements, including any agreement adding the Company’s subsidiaries as
additional borrowers or guarantors thereunder or extending the maturity of, refinancing, replacing
or otherwise restructuring all or any portion of the indebtedness under such agreement(s), whether
by the same or any other agent, lender or group of lenders.

          “Senior Indebtedness” means the principal of, interest (including interest, to the extent
allowable, accruing subsequent to the filing of a petition initiating any proceeding under any
state, federal or foreign bankruptcy law, whether or not a claim for post-petition interest is
allowable as a claim in any such proceeding) and rent payable on or termination payments with
respect to or in connection with, and all fees, costs, expenses, reimbursement amounts, indemnities
and other amounts accrued or due on or in connection with, Indebtedness of the Company, whether
outstanding on the date of this Indenture or thereafter created, incurred, assumed, guaranteed or
in effect guaranteed by the Company (including all deferrals, renewals, extensions or refundings
of, or amendments, modifications or supplements to, the foregoing), including the Company’s 5.75%
Convertible Noted due 2013, except for:

     (i) Indebtedness that by its terms expressly provides that it shall be
subordinated to the Notes; and

     (ii) Indebtedness between or among the Company or any of the Subsidiaries of
the Company.

          The term “Senior Indebtedness” shall, with respect to a Note Guarantor, have a correlative
meaning.

          “Settlement Amount” has the meaning specified in Section 15.02(b).

          “Settlement Method” means, with respect to a conversion of Notes, the relative proportions of
cash and/or shares of Common Stock with which such conversion is settled under this Indenture, as
elected (or deemed elected) by the Company.

          “Settlement Notice” has the meaning specified in Section 15.02(b)(iii).

12

 

          “Significant Subsidiary” has the meaning specified in Regulation S-X under the Exchange Act.

          “Specified Dollar Amount” means the dollar amount of cash per $1,000 principal amount of Note
to be received upon conversion specified in the Settlement Notice related to such converted Note.

          “Spin-Off” shall have the meaning specified in Section 15.04(c).

          “Stock Price” means

     (a) in the case of a Make-Whole Fundamental Change described in clause (b) of
the definition of Fundamental Change in which holders of Common Stock receive solely
cash consideration in connection with such Make-Whole Fundamental Change, the amount
of cash paid per share of the Common Stock; and

     (b) in the case of all other Make-Whole Fundamental Changes, the average of the
Last Reported Sale Prices per share of Common Stock over the period of ten
consecutive Trading Day period ending on, and including, the Trading Day immediately
preceding the Effective Date of such Make-Whole Fundamental Change. 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 of
the event occurs, during such ten consecutive Trading Days.

          “Subordinated Indebtedness” means any Indebtedness of the Company that specifically provides
that such Indebtedness ranks subordinated in right of payment to the Notes. “Subordinated
Indebtedness” of a Note Guarantor has a correlative meaning.

          “Subsidiary” means, with respect to 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
or other interests (including partnership interests) entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers, general partners or trustees
thereof 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.

          “Successor Company” shall have the meaning specified in Section 12.01(a).

          “Supplementary Interest” shall have the meaning specified in Section 7.01.

          “Trading Day” means a day on which:

     (a) trading in the Common Stock generally occurs on The Nasdaq Global Select
Market or, if the Common Stock is not then listed on The Nasdaq Global Select
Market, on the principal other U.S. national or regional securities

13

 

exchange on which the Common Stock is then listed or, if the Common Stock is not
then listed on a U.S. national or regional securities exchange, on the principal
other market on which the Common Stock is then traded; and

     (b) a Last Reported Sale Price for the Common Stock is available on such
securities exchange or market;

provided that if the Common Stock is not so listed or traded, “Trading Day” means a Business Day.

          “Trading Price” with respect to $1,000 principal amount of Notes, on any date of determination
means the average of the secondary market bid quotations obtained by the Bid Solicitation Agent for
$5.0 million principal amount of Notes at approximately 3:30 p.m., New York City time, on such
determination date from three independent U.S. nationally recognized securities dealers selected by
the Company; provided that if three such bids cannot reasonably be obtained by the Bid Solicitation
Agent, but two such bids are obtained, then the average of the two bids shall be used, and if only
one such bid can reasonably be obtained by the Bid Solicitation Agent, that one bid shall be used.
If the Bid Solicitation Agent cannot reasonably obtain at least one bid for $5.0 million principal
amount of Notes from any such nationally recognized securities dealer, then the Trading Price per
$1,000 principal amount of Notes will be deemed to be less than 98% of the product of the Last
Reported Sale Price of the Common Stock and the Conversion Rate.

          “transfer” shall have the meaning specified in Section 2.06(d).

          “Trigger Event” shall have the meaning specified in Section 15.04(c).

          “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended, as it was in force at
the date of execution of this Indenture, except as provided in Section 11.03 and Section 15.06;
provided, however, that in the event the Trust Indenture Act of 1939 is amended after the date
hereof, the term “Trust Indenture Act” shall mean, to the extent required by such amendment, the
Trust Indenture Act of 1939, as so amended.

          “Trustee” means the Person named as the “Trustee” in the first paragraph of this Indenture
until a successor Trustee shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Trustee” shall mean or include each Person who is then a Trustee
hereunder.

          “VWAP” for the Common Stock means, for each of the 40 consecutive VWAP Trading Days during the
Cash Settlement Averaging Period, the per share volume-weighted average price on The Nasdaq Global
Select Market as displayed under the heading “Bloomberg VWAP” on Bloomberg page “ALSK.UQ
<equity> VAP” (or its equivalent successor if any such page is not available) in respect of
the period from the scheduled open of trading until the scheduled close of trading of the primary
trading session on such VWAP Trading Day (or if such volume-weighted average price is unavailable,
the market value of one share of the Common Stock on such Trading Day as determined in a
commercially reasonable manner by the Board of Directors using a volume-weighted averaging price
method) and will be determined without regard to after hours trading or any other trading outside
of the regular trading session.

14

 

          “VWAP Market Disruption Event” means:

     (a) a failure by the primary exchange or quotation system on which the Common
Stock trades or is quoted to open for trading during its regular trading session; or

     (b) the occurrence or existence prior to 1:00 p.m., New York City time, on any
Scheduled VWAP Trading Day for the Common Stock of an aggregate one half-hour period
of any suspension or limitation imposed on trading (by reason of movements in price
exceeding limits permitted by the stock exchange or otherwise) in the Common Stock
or in any options, contracts or future contracts relating to the Common Stock.

          “VWAP Trading Day” means any day during which:

     (a) trading in the Common Stock generally occurs on The Nasdaq Global Select
Market or, if the Common Stock is not listed on The Nasdaq Global Select Market, the
principal national or regional securities exchange or other principal market on
which the Common Stock is listed, admitted for trading or quoted; and

     (b) there is no VWAP Market Disruption Event;

provided, however if the Common Stock is not so listed, admitted for trading or quoted, “VWAP
Trading Day” means a Business Day.

          “Weighted Average Consideration” shall have the meaning specified in Section 15.06(c)(iv).

          Section 1.02. Incorporation by Reference of Trust Indenture Act. Whenever this Indenture
refers to a provision of the TIA, the provision is incorporated by reference in, and made a part
of, this Indenture. The following TIA term used in this Indenture has the following meaning:

          “obligor” on the Notes means the Issuer, the Guarantors and any successor obligor upon the
Notes.

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

ARTICLE 2

ISSUE, DESCRIPTION, EXECUTION, REGISTRATION

AND EXCHANGE OF NOTES

          Section 2.01. Designation and Amount. The Notes shall be designated as the “6.25% Convertible
Notes due 2018.” The aggregate principal amount of Notes that may be authenticated and delivered
under this Indenture is initially limited to $120,000,000, subject to

15

 

increase in accordance with Section 2.11 and except for Notes authenticated and delivered upon
registration or transfer of, or in exchange for, or in lieu of other Notes pursuant to Section
2.06, Section 2.07, Section 11.04, Section 15.02 and Section 19.04.

          Section 2.02. Form of Notes. The Notes and the Trustee’s certificate of authentication to be
borne by such Notes shall be substantially in the respective forms set forth in Exhibit A, which
are incorporated in and made a part of this Indenture.

          Any Global Note may be endorsed with or have incorporated in the text thereof such legends or
recitals or changes not inconsistent with the provisions of this Indenture as may be required by
the Custodian or the Depositary or as may be required to comply with any applicable law or
regulation thereunder or the rules and regulations of any securities exchange or automated
quotation system upon which the Notes may be listed or traded or designated for issuance or to
conform with any usage with respect thereto, or to indicate any special limitations or restrictions
to which any particular Notes are subject.

          Any of the Notes may have such letters, numbers or other marks of identification and such
notations, legends or endorsements as the officers executing the same may approve (execution
thereof to be conclusive evidence of such approval) and as are not inconsistent with the provisions
of this Indenture, or as may be required to comply with any law or with any rule or regulation made
pursuant thereto or with any rule or regulation of any securities exchange or automated quotation
system on which the Notes may be listed or designated for issuance, or to conform to usage or to
indicate any special limitations or restrictions to which any particular Notes are subject.

          The Global Note shall represent such principal amount of the outstanding Notes as shall be
specified therein and shall provide that it shall represent the aggregate principal amount of
outstanding Notes from time to time reflected on the books and records of the Trustee and the
Depositary and that the aggregate principal amount of outstanding Notes represented thereby may
from time to time be increased or reduced to reflect repurchases, conversions, transfers or
exchanges permitted hereby. Any increase or decrease in the aggregate principal amount of the
Global Note in the books and records of the Trustee and Depositary to reflect the amount of any
increase or decrease in the amount of outstanding Notes represented thereby shall be made by the
Trustee and Depositary, at the direction of the Trustee, in such manner and upon instructions given
by the Noteholders in accordance with this Indenture.

          The terms and provisions contained in the form of Note attached as Exhibit A hereto shall
constitute, and are hereby expressly made, a part of this Indenture and, to the extent applicable,
the Company and the Trustee, by their execution and delivery of this Indenture, expressly agree to
such terms and provisions and to be bound thereby.

          Section 2.03. Date and Denomination of Notes; Payments of Interest. The Notes shall be
issuable in registered form without coupons in denominations of $1,000 principal amount and
integral multiples thereof. Each Note shall be dated the date of its authentication and shall bear
interest at the rate and from the date specified on the face of the form of Note attached as
Exhibit A hereto. Interest on the Notes shall be computed on the basis of a 360-day year comprised
of twelve 30-day months and will accrue from the date of original issuance of the

16

 

Notes, or from the most recent date to which interest has been paid or duly provided for. If
any Interest Payment Date falls on a date that is not a Business Day, such payment of interest (or
principal in the case of the Maturity Date or any earlier repurchase of the Notes) will be made on
the next succeeding Business Day, and no interest or other amount will be paid as a result of any
such delay.

          The Person in whose name any Note (or its Predecessor Note) is registered on the Note Register
at 5:00 p.m., New York City time, on any Interest Record Date with respect to any Interest Payment
Date shall be entitled to receive the interest payable on such Interest Payment Date. Interest
shall be payable at the office or agency of the Company maintained by the Company for such purposes
in The Borough of Manhattan, City of New York, which shall initially be one such office of the
Paying Agent at 101 Barclay Street, Floor 8 West, New York, New York 10286, Attention: Corporate
Trust Administration. The Company shall pay interest:

     (a) on any Notes in certificated form by check mailed to the address of the
Person entitled thereto as it appears in the Note Register or, if such certified
Notes held by such Person have an aggregate principal amount of more than $1,000,000
upon written application by such Person to the Trustee and Paying Agent (if
different from the Trustee) not later than the relevant Interest Record Date, by
wire transfer in immediately available funds to such Person’s account within the
United States (which application shall remain in effect until the Noteholder
notifies the Trustee and Paying Agent to the contrary); or

     (b) on any Global Note by wire transfer of immediately available funds to the
account of the Depositary or its nominee.

          Any Defaulted Interest shall forthwith cease to be payable to the Noteholder on the relevant
Interest Record Date by virtue of its having been such Noteholder, and such Defaulted Interest
shall be paid by the Company, at its election in each case, as provided in clause (1) or (2) below:

          (1) The Company may elect to make payment of any Defaulted Interest to the Persons in whose
names the Notes (or their respective Predecessor Notes) are registered at 5:00 p.m., New York City
time, on a special record date for the payment of such Defaulted Interest, which shall be fixed in
the following manner. The Company shall notify the Trustee in writing of the amount of Defaulted
Interest proposed to be paid on each Note and the date of the proposed payment (which shall be not
less than 25 days after the receipt by the Trustee of such notice, unless the Trustee shall consent
to an earlier date), and at the same time the Company shall deposit with the Trustee an amount of
money equal to the aggregate amount to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Trustee for such deposit on or prior to the date of the proposed
payment, such money when deposited to be held in trust for the benefit of the Persons entitled to
such Defaulted Interest as in this clause provided. Thereupon the Company shall fix a special
record date for the payment of such Defaulted Interest which shall be not more than 15 days and not
less than ten days prior to the date of the proposed payment, and not less than ten days after the
receipt by the Trustee of the notice of the proposed payment. The Company shall promptly notify
the Trustee of such special record date and the Trustee, in the name and at the expense of the
Company, shall cause notice of

17

 

the proposed payment of such Defaulted Interest and the special record date therefor to be
mailed, first-class postage prepaid, to each holder at its address as it appears in the Note
Register, not less than ten days prior to such special record date. Notice of the proposed payment
of such Defaulted Interest and the special record date therefor having been so mailed, such
Defaulted Interest shall be paid to the Persons in whose names the Notes (or their respective
Predecessor Notes) are registered at 5:00 p.m., New York City time, on such special record date and
shall no longer be payable pursuant to the following clause (2) of this Section 2.03.

          (2) The Company may make payment of any Defaulted Interest in any other lawful manner not
inconsistent with the requirements of any securities exchange or automated quotation system on
which the Notes may be listed or designated for issuance, and upon such notice as may be required
by such exchange or automated quotation system, if, after notice given by the Company to the
Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed
practicable by the Trustee.

          Section 2.04. Payments of Rule 144 Additional Interest and Supplementary Interest. The
Company shall pay Rule 144 Additional Interest and Supplementary Interest in the manner and under
the circumstances set forth herein. Whenever in this Indenture there is mentioned, in any context,
the payment of interest on, or in respect of, any Note, such mention shall be deemed to include
mention of the payment of “Rule 144 Additional Interest” and “Supplementary Interest” to the extent
that Rule 144 Additional Interest and Supplementary Interest is, was or would be payable hereunder,
and in either case express mention of the payment of Rule 144 Additional Interest (if applicable)
or Supplementary Interest (if applicable) in any provisions hereof shall not be construed as
excluding Rule 144 Additional Interest or Supplementary Interest, respectively, in those provisions
hereof where such express mention is not made.

          Section 2.05. Execution, Authentication and Delivery of Notes. The Notes shall be signed in
the name and on behalf of the Company by the manual or facsimile signature of its Chief Executive
Officer, President, Treasurer, Secretary or any of its Executive or Senior Vice Presidents.

          At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Notes executed by the Company to the Trustee for authentication, together with
a Company Order, Opinion of Counsel and Officers’ Certificate for the authentication and delivery
of such Notes, and the Trustee in accordance with such Company Order shall authenticate and deliver
such Notes, without any further action by the Company hereunder.

          Only such Notes as shall bear thereon a certificate of authentication substantially in the
form set forth on the form of Note attached as Exhibit A hereto, executed manually or by facsimile
by an authorized officer of the Trustee (or an authenticating agent appointed by the Trustee as
provided by Section 20.11), shall be entitled to the benefits of this Indenture or be valid or
obligatory for any purpose. Such certificate by the Trustee (or such an authenticating agent) upon
any Note executed by the Company shall be conclusive evidence that the Note so authenticated has
been duly authenticated and delivered hereunder and that the holder is entitled to the benefits of
this Indenture.

18

 

          In case any officer of the Company who shall have signed any of the Notes shall cease to be
such officer before the Notes so signed shall have been authenticated and delivered by the Trustee,
or disposed of by the Company, such Notes nevertheless may be authenticated and delivered or
disposed of as though the person who signed such Notes had not ceased to be such officer of the
Company; and any Note may be signed on behalf of the Company by such persons as, at the actual date
of the execution of such Note, shall be the proper officers of the Company, although at the date of
the execution of this Indenture any such person was not such an officer.

          Section 2.06. Exchange and Registration of Transfer of Notes; Restrictions on Transfer;
Depositary. (a) The Company shall cause to be kept at the Corporate Trust Office a register (the
register maintained in such office or in any other office or agency of the Company designated
pursuant to Section 5.02 being herein sometimes collectively referred to as the “Note Register”) in
which, subject to such reasonable regulations as it may prescribe, the Company shall provide for
the registration of Notes and of transfers of Notes. Such register shall be in written form or in
any form capable of being converted into written form within a reasonable period of time. The
Trustee is hereby appointed “Note Registrar” for the purpose of registering Notes and transfers of
Notes as herein provided. The Company may appoint one or more co-registrars in accordance with
Section 5.02.

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

          Notes may be exchanged for other Notes of any authorized denominations and of a like aggregate
principal amount, upon surrender of the Notes to be exchanged at any such office or agency
maintained by the Company pursuant to Section 5.02. Whenever any Notes are so surrendered for
exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the Notes that
the Noteholder making the exchange is entitled to receive, bearing registration numbers not
contemporaneously outstanding.

          All Notes presented or surrendered for registration of transfer or for exchange, repurchase or
conversion shall (if so required by the Company, the Trustee, the Note Registrar or any
co-registrar) be duly endorsed, or be accompanied by a written instrument or instruments of
transfer in form satisfactory to the Company and duly executed, by the Noteholder thereof or its
attorney-in-fact duly authorized in writing.

          No service charge shall be charged to the Noteholder for any exchange or registration of
transfer of Notes, but the Company or the Trustee may require payment of a sum sufficient to cover
any tax, assessments or other governmental charges that may be imposed in connection therewith as a
result of the name of the Noteholder of the new Notes issued upon such exchange or registration of
transfer of Notes being different from the name of the Noteholder of the old Notes presented or
surrendered for such exchange or registration of transfer.

19

 

          None of the Company, the Trustee, the Note Registrar or any co-registrar shall be required to
exchange or register a transfer of (i) any Notes surrendered for conversion or, if a portion of any
Note is surrendered for conversion, such portion thereof surrendered for conversion or (ii) any
Notes, or a portion of any Note, surrendered for repurchase (and not withdrawn) in accordance with
Article 19.

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

          (b) So long as the Notes are eligible for book-entry settlement with the Depositary, unless
otherwise required by law, all Notes shall be represented by one or more Notes in global form
(each, a “Global Note”) registered in the name of the Depositary or the nominee of the Depositary.
The transfer and exchange of beneficial interests in a Global Note that does not involve the
issuance of a definitive Note, shall be effected through the Depositary (but not the Trustee or the
Custodian) in accordance with this Indenture (including the restrictions on transfer set forth
herein) and the procedures of the Depositary therefor.

          (c) [Reserved].

          (d) Every Note that bears or is required under this Section 2.06(d) to bear the legend set
forth in this Section 2.06(d) (together with any Common Stock issued upon conversion of the Notes
and required to bear the legend set forth in Section 2.06(e), collectively, the “Restricted
Securities”) shall be subject to the restrictions on transfer set forth in this Section 2.06(d)
(including the legend set forth below), unless such restrictions on transfer shall be eliminated or
otherwise waived by written consent of the Company, and the holder of each such Restricted
Security, by such holder’s acceptance thereof, agrees to be bound by all such restrictions on
transfer. As used in Section 2.06(d) and Section 2.06(e), the term “transfer” encompasses any
sale, pledge, transfer or other disposition whatsoever of any Restricted Security.

          Until the date (the “Resale Restriction Termination Date”) that is the later of (1) the date
that is one year after the last date of original issuance of the Notes, or such shorter period of
time as permitted by Rule 144 under the Securities Act or any successor provision thereunder and
(2) such later date, if any, as may be required by applicable laws, any certificate evidencing such
Note (and all securities issued in exchange therefor or substitution thereof, other than Common
Stock, if any, issued upon conversion thereof which shall bear the legend set forth in Section
2.06(e), if applicable) shall bear a legend in substantially the following form (unless such Notes
have been transferred pursuant to a registration statement that has become or been declared
effective under the Securities Act and that continues to be effective at the time of such transfer,
pursuant to the exemption from registration provided by Rule 144 or any similar provision then in
force under the Securities Act, or unless otherwise agreed by the Company in writing, with notice
thereof to the Trustee):

THIS SECURITY AND THE COMMON STOCK, IF ANY, ISSUABLE UPON CONVERSION OF THIS SECURITY HAVE
NOT BEEN REGISTERED UNDER

20

 

THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY
STATE OR OTHER JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN
MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF
IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT
SUBJECT TO, SUCH REGISTRATION.

THE HOLDER OF THIS SECURITY, BY ACQUISITION HEREOF OR A BENEFICIAL INTEREST HEREIN, (1)
REPRESENTS THAT IT IS A QUALIFIED INSTITITUTIONAL BUYER AS DEFINED UNDER RULE 144A UNDER THE
SECURITIES ACT (“RULE 144A”); (2) AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR
ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES THAT IT WILL NOT, PRIOR TO THE DATE (THE
“RESALE RESTRICTION TERMINATION DATE”) ONE YEAR, OR SUCH SHORTER PERIOD OF TIME AS PERMITTED
BY RULE 144 UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION THEREUNDER, AFTER THE LAST
DATE OF ORIGINAL ISSUANCE OF THE 6.25% CONVERTIBLE NOTES DUE 2018 OF ALASKA COMMUNICATIONS
SYSTEMS GROUP, INC. (THE “COMPANY”) RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED
HEREBY OR ANY COMMON STOCK THAT MAY BE ISSUABLE UPON CONVERSION OF SUCH SECURITY EXCEPT (A)
TO THE COMPANY OR ANY AFFILIATE THEREOF, (B) 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, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL
BUYER” AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A OR (C) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S RIGHT PRIOR
TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (2)(C) TO REQUIRE THE DELIVERY OF AN
OPINION OF COUNSEL, CERTIFICATION AND/ OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM;
AND (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THE SECURITY EVIDENCED HEREBY IS
TRANSFERRED (OTHER THAN PURSUANT TO CLAUSE 2(C)) A NOTICE OF THIS LEGEND. THIS LEGEND WILL
BE REMOVED BY THE COMPANY AFTER THE RESALE RESTRICTION TERMINATION DATE.

BY ITS ACQUISITION OF THIS SECURITY, THE HOLDER THEREOF WILL BE DEEMED TO HAVE REPRESENTED
AND WARRANTED THAT EITHER (1) NO PORTION OF THE ASSETS USED BY SUCH HOLDER TO ACQUIRE OR
HOLD THIS SECURITY CONSTITUTES THE ASSETS OF AN EMPLOYEE BENEFIT PLAN THAT IS SUBJECT TO
TITLE I OF THE U.S. EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”),
OF A PLAN,

21

 

INDIVIDUAL RETIREMENT ACCOUNT OR OTHER ARRANGEMENT THAT IS SUBJECT TO SECTION 4975 OF THE
U.S. INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) OR PROVISIONS UNDER ANY OTHER
FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE SIMILAR TO SUCH
PROVISIONS OF ERISA OR THE CODE (“SIMILAR LAWS”), OR OF AN ENTITY WHOSE UNDERLYING ASSETS
ARE CONSIDERED TO INCLUDE “PLAN ASSETS” OF ANY SUCH PLAN, ACCOUNT OR ARRANGEMENT, OR (2) THE
ACQUISITION, HOLDING AND, IF APPLICABLE, CONVERSION OF THIS SECURITY WILL NOT CONSTITUTE A
NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR
A SIMILAR VIOLATION UNDER ANY APPLICABLE SIMILAR LAWS.

          No transfer of any Note prior to the Resale Restriction Termination Date will be registered by
the Note Registrar unless the applicable box on the Form of Assignment and Transfer has been
checked.

          Promptly after one-year has elapsed following the last date of (1) original issuance of the
Notes or (2) original issuance of any Additional Notes under Section 2.11 of this Indenture, if the
Notes (including any Additional Notes with the same terms and the same CUSIP number as the Notes)
and Common Stock issued upon conversion of the Notes are freely tradable pursuant to Rule 144 under
the Securities Act by holders who are not Affiliates of the Company, the Company shall:

          (i) Notify the Trustee to remove the restrictive legends described in this Section
2.06(d) and in Section 2.06(e) from the Notes and Common Stock issued upon conversion of the
Notes, respectively, and upon such notice the restrictive legend shall be deemed removed
from any Global Securities without further action on the part of holders;

          (ii) Notify Noteholders and Common Stock issued upon conversion of the Notes that the
restrictive legend has been removed or deemed removed; and

          (iii) Notify the Trustee and DTC to change the CUSIP number for the Notes and the
Common Stock issued upon conversion of the Notes to the unrestricted CUSIP number.

In no event will the failure of the Company to provide any notice set forth in this paragraph or of
the Trustee to remove the restrictive legend constitute a failure by the Company to comply with any
of its covenants or agreements set forth in this Indenture for purposes of Section 7.01 of this
Indenture or otherwise.

          Any Note (or security issued in exchange or substitution therefor) as to which such
restrictions on transfer shall have expired in accordance with their terms may, upon surrender of
such Note for exchange to the Note Registrar in accordance with the provisions of this Section
2.06, be exchanged for a new Note or Notes, of like tenor and aggregate principal amount, which
shall not bear the restrictive legend required by this Section 2.06(d). The

22

 

Company shall notify the Trustee upon the occurrence of the Resale Restriction Termination
Date and promptly after a Registration Statement with respect to the Notes or any Common Stock
issued upon conversion of the Notes has been declared effective under the Securities Act.

          Notwithstanding any other provisions of this Indenture (other than the provisions set forth in
this Section 2.06(d)), a Global Note may not be transferred as a whole or in part except (i) 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 and (ii) for transfers of portions of a Global
Note in certificated form made upon request of a member of, or a participant in, the Depositary
(for itself or on behalf of a beneficial owner) by written notice given to the Trustee by or on
behalf of the Depositary in accordance with customary procedures of the Depositary and in
compliance with this Section.

          The Depositary shall be a clearing agency registered under the Exchange Act. The Company
initially appoints The Depository Trust Company to act as Depositary with respect to the Global
Note. Initially, the Global Note shall be issued to the Depositary, registered in the name of Cede
& Co., as the nominee of the Depositary, and deposited with the Trustee as custodian for Cede & Co.

          If:

     (i) the Depositary notifies the Company at any time that the Depositary is
unwilling or unable to continue as depositary for the Global Notes and a successor
depositary is not appointed within 90 days;

     (ii) the Depositary ceases to be registered as a clearing agency under the
Exchange Act and a successor depositary is not appointed within 90 days; or

     (iii) an Event of Default in respect of the Notes has occurred and is
continuing,

upon the request of the beneficial owner of the Notes, the Company will execute, and the Trustee,
upon receipt of an Officers’ Certificate and a Company Order for the authentication and delivery of
Notes, will authenticate and deliver Notes in definitive form to each such beneficial owner of the
related Notes (or a portion thereof) in an aggregate principal amount equal to the principal amount
of such Global Note, in exchange for such Global Note, and upon delivery of the Global Note to the
Trustee such Global Note shall be canceled.

          Definitive Notes issued in exchange for all or a part of the Global Note pursuant to this
Section 2.06(d) shall be registered in such names and in such authorized denominations as the
Depositary, pursuant to instructions from its direct or indirect participants or otherwise, shall
instruct the Trustee. Upon execution and authentication, the Trustee shall deliver such definitive
Notes to the Persons in whose names such definitive Notes are so registered.

          At such time as all interests in a Global Note have been converted, canceled, repurchased or
transferred, such Global Note shall be, upon receipt thereof, canceled by the Trustee in accordance
with standing procedures and instructions existing between the Depositary

23

 

and the Custodian. At any time prior to such cancellation, if any interest in a Global Note
is exchanged for definitive Notes, converted, canceled, repurchased or transferred to a transferee
who receives definitive Notes therefor or any definitive Note is exchanged or transferred for part
of such Global Note, the principal amount of such Global Note shall, in accordance with the
standing procedures and instructions existing between the Depositary and the Custodian, be
appropriately reduced or increased, as the case may be, and an endorsement shall be made on such
Global Note, by the Trustee or the Custodian, at the direction of the Trustee, to reflect such
reduction or increase.

          None of the Company, the Trustee nor any agent of the Company or the Trustee will have any
responsibility or liability for any aspect of the records relating to or payments made on account
of beneficial ownership interests of a Global Note or maintaining, supervising or reviewing any
records relating to such beneficial ownership interests.

          (e) Until the Resale Restriction Termination Date, any stock certificate representing Common
Stock issued upon conversion of such Note shall bear a legend in substantially the following form
(unless the Note or such Common Stock has been transferred pursuant to a registration statement
that has become or been declared effective under the Securities Act and that continues to be
effective at the time of such transfer or pursuant to the exemption from registration provided by
Rule 144 under the Securities Act or any similar provision then in force under the Securities Act,
or such Common Stock has been issued upon conversion of Notes that have been transferred pursuant
to a registration statement that has become or been declared effective under the Securities Act and
that continues to be effective at the time of such transfer or pursuant to the exemption from
registration provided by Rule 144 under the Securities Act, or unless otherwise agreed by the
Company with written notice thereof to the Trustee and any transfer agent for the Common Stock):

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH
REGISTRATION.

THE HOLDER OF THIS SECURITY, BY ACQUISITION HEREOF OR A BENEFICIAL INTEREST HEREIN, (1)
REPRESENTS THAT IT IS A QUALIFIED INSTITITUTIONAL BUYER AS DEFINED UNDER RULE 144A UNDER THE
SECURITIES ACT (“RULE 144A”); (2) AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR
ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES THAT IT WILL NOT, PRIOR TO THE DATE (THE
“RESALE RESTRICTION TERMINATION DATE”) ONE YEAR, OR SUCH SHORTER PERIOD OF TIME AS PERMITTED
BY RULE 144 UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION THEREUNDER, AFTER THE LAST
DATE OF ORIGINAL ISSUANCE OF THE 6.25% CONVERTIBLE NOTES DUE 2018 OF ALASKA COMMUNICATIONS
SYSTEMS GROUP, INC. (THE “COMPANY”)

24

 

RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY OR ANY COMMON STOCK THAT MAY BE
ISSUABLE UPON CONVERSION OF SUCH SECURITY EXCEPT (A) TO THE COMPANY OR ANY AFFILIATE
THEREOF, (B) 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, TO A PERSON
IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM
NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A OR (C) PURSUANT TO
ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT,
SUBJECT TO THE COMPANY’S AND THE TRANSFERRED AGENT’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR
TRANSFER PURSUANT TO CLAUSE (2)(C) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/ OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM; AND (3) AGREES THAT IT
WILL DELIVER TO EACH PERSON TO WHOM THE SECURITY EVIDENCED HEREBY IS TRANSFERRED (OTHER THAN
PURSUANT TO CLAUSE 2(C)) A NOTICE OF THIS LEGEND. THIS LEGEND WILL BE REMOVED BY THE COMPANY
AFTER THE RESALE RESTRICTION TERMINATION DATE.

          Any such Common Stock as to which such restrictions on transfer shall have expired in
accordance with their terms 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 aggregate number of shares of
Common Stock, which shall not bear the restrictive legend required by this Section 2.06(e).

          (f) [Reserved].

          (g) Notwithstanding any provision of Section 2.06 to the contrary, in the event Rule 144 as
promulgated under the Securities Act (or any successor rule) is amended to change the one year
holding period thereunder (or the corresponding period under any successor rule), from and after
receipt by the Trustee of the Officers’ Certificate and Opinion of Counsel provided for in this
Section 2.06(g), (i) each reference in Section 2.06(d) to “one year” and in the restrictive legend
set forth in such paragraph to “ONE YEAR” shall be deemed for all purposes hereof to be references
to such changed period, (ii) each reference in Section 2.06(e) to “one year” and in the restrictive
legend set forth in such paragraph to “ONE YEAR” shall be deemed for all purposes hereof to be
references to such changed period and (iii) all corresponding references in the Notes (including
the definition of Resale Restriction Termination Date) and the restrictive legends thereon shall be
deemed for all purposes hereof to be references to such changed period, provided that such changes
shall not become effective if they are otherwise prohibited by, or would otherwise cause a
violation of, the then-applicable federal securities laws. The provisions of this Section 2.06(g)
will not be effective until such time as the Opinion of Counsel and Officers’ Certificate have been
received by the Trustee hereunder. This Section

25

 

2.06(g) shall apply to successive amendments to Rule 144 (or any successor rule) changing the
holding period thereunder.

          Section 2.07. Mutilated, Destroyed, Lost or Stolen Notes. In case any Note shall become
mutilated or be destroyed, lost or stolen, the Company in its discretion may execute, and upon its
written request the Trustee or an authenticating agent appointed by the Trustee shall authenticate
and deliver, a new Note, bearing a number not contemporaneously outstanding, in exchange and
substitution for the mutilated Note, or in lieu of and in substitution for the Note so destroyed,
lost or stolen. In every case the applicant for a substituted Note shall furnish to the Company,
to the Trustee and, if applicable, to such authenticating agent such security or indemnity as may
be required by them to save each of them harmless from any loss, liability, cost or expense caused
by or connected with such substitution, and, in every case of destruction, loss or theft, the
applicant shall also furnish to the Company, to the Trustee and, if applicable, to such
authenticating agent evidence to their satisfaction of the destruction, loss or theft of such Note
and of the ownership thereof.

          The Trustee or such authenticating agent may authenticate any such substituted Note and
deliver the same upon the receipt of such security or indemnity as the Trustee, the Company and, if
applicable, such authenticating agent may require. Upon the issuance of any substitute Note, the
Company or the Trustee may require the payment by the holder of a sum sufficient to cover any tax,
assessment or other governmental charge that may be imposed in relation thereto and any other
expenses connected therewith. In case any Note that has matured or is about to mature or has been
tendered for repurchase upon a Fundamental Change or is about to be converted into cash, shares of
Common Stock or a combination of cash and shares of Common Stock, as applicable, shall become
mutilated or be destroyed, lost or stolen, the Company may, in its sole discretion, instead of
issuing a substitute Note, pay or authorize the payment of or convert or authorize the conversion
of the same (without surrender thereof except in the case of a mutilated Note), as the case may be,
if the applicant for such payment or conversion shall furnish to the Company, to the Trustee and,
if applicable, to such authenticating agent such security or indemnity as may be required by them
to save each of them harmless for any loss, liability, cost or expense caused by or connected with
such substitution, and, in every case of destruction, loss or theft, evidence satisfactory to the
Company, the Trustee and, if applicable, any Paying Agent or Conversion Agent evidence of their
satisfaction of the destruction, loss or theft of such Note and of the ownership thereof.

          Every substitute Note issued pursuant to the provisions of this Section 2.07 by virtue of the
fact that any Note is destroyed, lost or stolen shall constitute an additional contractual
obligation of the Company, whether or not the destroyed, lost or stolen Note shall be found at any
time, and shall be entitled to all the benefits of (but shall be subject to all the limitations set
forth in) this Indenture equally and proportionately with any and all other Notes duly issued
hereunder. To the extent permitted by law, all Notes shall be held and owned upon the express
condition that the foregoing provisions are exclusive with respect to the replacement or payment or
conversion or repurchase of mutilated, destroyed, lost or stolen Notes and shall preclude any and
all other rights or remedies notwithstanding any law or statute existing or hereafter enacted to
the contrary with respect to the replacement or payment or conversion of negotiable instruments or
other securities without their surrender.

26

 

          Section 2.08. Temporary Notes. Pending the preparation of Notes in certificated form, the
Company may execute and the Trustee or an authenticating agent appointed by the Trustee shall, upon
written request of the Company, authenticate and deliver temporary Notes (printed or lithographed).
Temporary Notes shall be issuable in any authorized denomination, and substantially in the form of
the Notes in certificated form but with such omissions, insertions and variations as may be
appropriate for temporary Notes, all as may be determined by the Company. Every such temporary
Note shall be executed by the Company and authenticated by the Trustee or such authenticating agent
upon the same conditions and in substantially the same manner, and with the same effect, as the
Notes in certificated form. Without unreasonable delay the Company will execute and deliver to the
Trustee or such authenticating agent Notes in certificated form (other than any Global Note) and
thereupon any or all temporary Notes (other than any Global Note) may be surrendered in exchange
therefor, at each office or agency maintained by the Company pursuant to Section 5.02 and the
Trustee or such authenticating agent shall authenticate and deliver in exchange for such temporary
Notes an equal aggregate principal amount of Notes in certificated form. Such exchange shall be
made by the Company at its own expense and without any charge therefor. Until so exchanged, the
temporary Notes shall in all respects be entitled to the same benefits and subject to the same
limitations under this Indenture as Notes in certificated form authenticated and delivered
hereunder.

          Section 2.09. Cancellation of Notes Paid, Etc. All Notes surrendered for the purpose of
payment, repurchase, conversion, exchange or registration of transfer, shall, if surrendered to the
Company or any Paying Agent or any Note Registrar or any Conversion Agent, be surrendered to the
Trustee and promptly canceled by it, or, if surrendered to the Trustee, shall be promptly canceled
by it, and no Notes shall be issued in lieu thereof except as expressly permitted by any of the
provisions of this Indenture. The Trustee shall dispose of canceled Notes in accordance with its
customary procedures and, after such disposition, shall deliver a certificate of such disposition
to the Company, at the Company’s written request. If the Company shall acquire any of the Notes,
such acquisition shall not operate as satisfaction of the indebtedness represented by such Notes
unless and until the same are delivered to the Trustee for cancellation.

          Section 2.10. CUSIP Numbers. The Company in issuing the Notes may use “CUSIP” numbers (if
then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in all notices issued to
Noteholders as a convenience to Noteholders; provided that any such notice may state that no
representation is made as to the correctness of such numbers either as printed on the Notes or on
such notice and that reliance may be placed only on the other identification numbers printed on the
Notes. The Company will promptly notify the Trustee in writing of any change in the “CUSIP”
numbers, including, without limitation, at such time as the restricted CUSIP shall be removed from
the Notes.

          Section 2.11. Additional Notes. The Company may, without the consent of Noteholders, issue
additional Notes hereunder in the future on the same terms and conditions of the Notes issued
hereunder, except for any differences in the issue price and interest accrued prior to the issue
date of the additional Notes; provided that such differences do not cause the additional Notes to
constitute a different class of securities than the Notes for U.S. federal income tax purposes
(such additional Notes, the “Additional Notes”). The Notes initially issued hereunder and any such
Additional Notes shall rank equally and ratably with each other and shall

27

 

be treated as a single series for all purposes under this Indenture. The Company may not issue
any Additional Notes if any Event of Default has occurred with respect to the Notes.

          Section 2.12. Repurchases. The Company may, to the extent permitted by law, may repurchase any
Notes in the open market or by tender offer at any price or by private agreement, without prior
notice to Noteholders. Any notes repurchased by the Company may, at the Company’s option, be
surrendered to the Trustee for cancellation, but may not be reissued or resold by the Company. Any
Notes surrendered for cancellation may not be reissued or resold and will be promptly cancelled.

ARTICLE 3

[INTENTIONALLY OMITTED]

ARTICLE 4

SATISFACTION AND DISCHARGE

          Section 4.01. Satisfaction and Discharge. This Indenture shall upon request of the Company
contained in an Officers’ Certificate cease to be of further effect, and the Trustee, at the
expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge
of this Indenture, when:

          (a) (i) all Notes theretofore authenticated and delivered (other than (x) Notes which
have been destroyed, lost or stolen and which have been replaced or paid as provided in
Section 2.07 and (y) Notes for whose payment money has theretofore been deposited in trust
or segregated and held in trust by the Company and thereafter repaid to the Company or
discharged from such trust, as provided in Section 5.04(d)) have been delivered to the
Trustee for cancellation; and (ii) the Company has deposited with the Trustee or delivered
to Noteholders, as applicable, after the Notes have become due and payable, whether at the
Maturity Date, any Fundamental Change Repurchase Date, upon conversion or otherwise, cash or
cash and shares of Common Stock, if any (solely to satisfy the Company’s Conversion
Obligation, if applicable), sufficient to pay all of the outstanding Notes and all other
sums due payable under this Indenture by the Company; and

          (b) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture have been complied with. Notwithstanding the
satisfaction and discharge of this Indenture, the obligations of the Company to the Trustee
under Section 8.06 shall survive such satisfaction and discharge.

ARTICLE 5

PARTICULAR COVENANTS OF THE COMPANY

          Section 5.01. Payment of Principal and Interest. The Company covenants and agrees that it
will cause to be paid the principal of and accrued and unpaid interest on each of the Notes at the
places, at the respective times and in the manner provided herein and in the Notes.

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          Section 5.02. Maintenance of Office or Agency. The Company will maintain in the Borough of
Manhattan, The City of New York, an office or agency where the Notes may be surrendered for
registration of transfer or exchange or for presentation for payment or repurchase (“Paying Agent”)
or for conversion (“Conversion Agent”) and where notices and demands to or upon the Company in
respect of the Notes and this Indenture may be served. The Company will give prompt written notice
to the Trustee of the location, and any change in the location, of such office or agency. If at
any time the Company shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands
may be made or served at the Corporate Trust Office or the office or agency of the Trustee in the
Borough of Manhattan, The City of New York.

          The Company may also from time to time designate co-registrars one or more other offices or
agencies where the Notes may be presented or surrendered for any or all such purposes and may from
time to time rescind such designations; provided that no such designation or rescission shall in
any manner relieve the Company of its obligation to maintain an office or agency in the Borough of
Manhattan, The City of New York, for such purposes. The Company will give prompt written notice to
the Trustee of any such designation or rescission and of any change in the location of any such
other office or agency. The terms “Paying Agent” and “Conversion Agent” include any such
additional or other offices or agencies, as applicable.

          The Company hereby initially designates the Trustee as the Paying Agent, Note Registrar,
Custodian and Conversion Agent and the Corporate Trust Office and the office or agency of the
Trustee in the Borough of Manhattan each shall be considered as one such office or agency of the
Company for each of the aforesaid purposes.

          Section 5.03. Appointments to Fill Vacancies in Trustee’s Office. The Company, whenever
necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided
in Section 8.10, a Trustee, so that there shall at all times be a Trustee hereunder.

          Section 5.04. Provisions as to Paying Agent. (a) If the Company shall appoint a Paying Agent
other than the Trustee, the Company will cause such Paying Agent to execute and deliver to the
Trustee an instrument in which such agent shall agree with the Trustee, subject to the provisions
of this Section 5.04:

          (i) that it will hold all sums held by it as such agent for the payment of the
principal of and accrued and unpaid interest on the Notes in trust for the benefit of the
Noteholders;

          (ii) that it will give the Trustee prompt notice of any failure by the Company to make
any payment of the principal of and accrued and unpaid interest on the Notes when the same
shall be due and payable; and

          (iii) that at any time during the continuance of an Event of Default, upon request of
the Trustee, it will forthwith pay to the Trustee all sums so held in trust.

          The Company shall, on or before each due date of the principal of or accrued and unpaid
interest on the Notes, deposit with the Paying Agent a sum sufficient to pay such principal or
accrued and unpaid interest, and (unless such Paying Agent is the Trustee) the

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Company will promptly notify the Trustee of any failure to take such action, provided that if
such deposit is made on the due date, such deposit must be received by the Paying Agent by 11:00
a.m., New York City time, on such date.

          (b) If the Company shall act as its own Paying Agent, it will, on or before each due date of
the principal of, accrued and unpaid interest on the Notes, set aside, segregate and hold in trust
for the benefit of the Noteholders a sum sufficient to pay such principal, accrued and unpaid
interest, so becoming due and will promptly notify the Trustee in writing of any failure to take
such action and of any failure by the Company to make any payment of the principal of accrued and
unpaid interest on the Notes when the same shall become due and payable.

          (c) Anything in this Section 5.04 to the contrary notwithstanding, the Company may, at any
time, for the purpose of obtaining a satisfaction and discharge of this Indenture, or for any other
reason, pay or cause to be paid to the Trustee all sums held in trust by the Company or any Paying
Agent hereunder as required by this Section 5.04, such sums to be held by the Trustee upon the
trusts herein contained and upon such payment by the Company or any Paying Agent to the Trustee,
the Company or such Paying Agent shall be released from all further liability with respect to such
sums.

          (d) Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of or accrued and unpaid interest on any Note and remaining
unclaimed for two years after such principal or interest has become due and payable shall be paid
to the Company on request of the Company contained in an Officers’ Certificate, or (if then held by
the Company) shall be discharged from such trust; and the Noteholder of such Note shall thereafter,
as an unsecured general creditor, look only to the Company for payment thereof, and all liability
of the Trustee or such Paying Agent with respect to such trust money, and all liability of the
Company as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such
Paying Agent, before being required to make any such repayment, may at the expense of the Company
cause to be published once, in a newspaper published in the English language, customarily published
on each Business Day and of general circulation in The Borough of Manhattan, The City of New York,
New York, notice that such money remains unclaimed and that, after a date specified therein, which
shall not be less than 30 days from the date of such publication, any unclaimed balance of such
money then remaining will be repaid to the Company.

          Section 5.05. Existence. Subject to Article 12, 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 and Annual Reports. (a) If at any time the
Company is not subject to the reporting requirements of the Exchange Act, the Company shall furnish
to the Noteholders, beneficial owners and prospective purchasers of the Notes or the Common Stock
issued upon conversion, upon their request, the information required to be delivered pursuant to
Rule 144A(d)(4) under the Securities Act to facilitate the resale of such Notes or shares of Common
Stock pursuant to Rule 144A under the Securities Act. The Company shall take such further action
as any Noteholder or beneficial owner of such Notes or such Common Stock may reasonably request to
the extent required from time to time to

30

 

enable such Noteholder or beneficial holder to sell such Notes or shares of Common Stock in
accordance with Rule 144A under the Securities Act, as such rule may be amended from time to time.

          (b) The Company shall provide the Trustee with a copy of the reports it must file with the SEC
pursuant to Section 13 or 15(d) of the Exchange Act no later than ten Business Days after those
reports must be filed with the SEC (after giving effect to any grace period provided by Rule 12b-25
under the Exchange Act). The filing of these reports with the SEC through its EDGAR database within
the time periods for filing the same under the Exchange Act (taking into account any applicable
grace periods provided thereunder) shall satisfy the Company’s obligation to furnish those reports
to the Trustee; provided, however, that the Trustee shall have no obligation whatsoever to
determine whether or not such filings have been made.

          (c) Delivery of the reports, information and documents described in clause (b) above 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 conclusively rely exclusively on an Officers’ Certificate).

          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 that would
prohibit or forgive the Company from paying all or any portion of the principal of or interest on
the Notes as contemplated herein, wherever enacted, now or at any time hereafter in force, or that
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. Compliance Certificate; Statements as to Defaults. 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, 2011) an Officers’ Certificate stating whether or not the signer
thereof has knowledge of any failure by the Company to comply with all conditions and covenants
then required to be performed under this Indenture and, if so, specifying each such failure and the
nature thereof.

          In addition, the Company shall deliver to the Trustee, as soon as possible, and in any event
within 30 days after the Company becomes aware of the occurrence of any Event of Default or
Default, an Officers’ Certificate setting forth the details of such Event of Default or Default,
its status and the action that the Company proposes to take with respect thereto.

          Section 5.09. Rule 144 Additional Interest. (a) If, at any time during the sixth-month period
beginning on, and including, the date that is six months after the last original issuance date of
the Notes, the Company fails to timely file any document or report that the Company is required to
file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act,

31

 

as applicable (after giving effect to all applicable grace periods thereunder and other than
reports on Form 8-K), the Company shall pay additional interest (“Rule 144 Additional Interest”) on
the Notes. Rule 144 Additional Interest shall accrue on all transfer restricted Notes at an annual
rate of 0.50% per annum of the principal amount of such Notes outstanding for each day during such
period for which the Company’s failure to file has occurred and is continuing or the Notes are not
otherwise freely tradable.

          (b) Rule 144 Additional Interest payable in accordance with Section 5.09(a) shall be payable
in arrears on each Interest Payment Date following the late filing in the same manner as regular
interest on the Notes.

          (c) No Rule 144 Additional Interest shall accrue at any time other than during the six-month
period specified in Section 5.09(a), regardless of whether the Company shall be current in its
reporting obligations pursuant to Section 13 or 15(d) of the Exchange Act.

          (d) The Company shall notify the Trustee in writing promptly upon its becoming aware of its
obligation to pay Rule 144 Additional Interest, the date on which such Rule 144 Additional Interest
is payable and the amount identified as Rule 144 Additional Interest. In no event shall the Trustee
be charged with knowledge of whether such Rule 144 Additional Interest is due, unless it has
received the written notice referred to in the preceding sentence.

          Section 5.10. Further Instruments and Acts. Upon request of the Trustee or as necessary, 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 5.11. Future Note Guarantors. So long as any Notes remain outstanding, unless all the
Note Guarantors have been released under Section 17.03, the Company shall cause any future
majority-owned Domestic Subsidiary, other than a Subsidiary whose sole assets consist of FCC and
other regulatory licenses, to become a Note Guarantor, and, if applicable, execute and deliver to
the Trustee a supplemental indenture pursuant to which such Subsidiary will Guarantee payment of
the Notes.

ARTICLE 6

LISTS OF NOTEHOLDERS AND REPORTS BY

THE COMPANY AND THE TRUSTEE

          Section 6.01. Lists of Noteholders. The Company covenants and agrees that it will furnish or
cause to be furnished to the Trustee, semi-annually, not more than 15 days after each May 1 and
November 1 in each year beginning with May 1, 2011, and at such other times as the Trustee may
request in writing, within 30 days after receipt by the Company of any such request (or such lesser
time as the Trustee may reasonably request in order to enable it to timely provide any notice to be
provided by it hereunder), a list in such form as the Trustee may reasonably require of the names
and addresses of the Noteholders as of a date not more than 15 days (or such other date as the
Trustee may reasonably request in order to so provide any such

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notices) prior to the time such information is furnished, except that no such list need be
furnished so long as the Trustee is acting as Note Registrar.

          Section 6.02. Preservation and Disclosure of Lists. (a) The Trustee shall preserve, in as
current a form as is reasonably practicable, all information as to the names and addresses of the
Noteholders contained in the most recent list furnished to it as provided in Section 6.01 or
maintained by the Trustee in its capacity as Note Registrar, if so acting. The Trustee may destroy
any list furnished to it as provided in Section 6.01 upon receipt of a new list so furnished.

          (b) The rights of Noteholders to communicate with other Noteholders with respect to their
rights under this Indenture or under the Notes and the corresponding rights and duties of the
Trustee, shall be as provided by the Trust Indenture Act.

          (c) Every Noteholder, by receiving and holding the same, agrees with the Company and the
Trustee that neither the Company nor the Trustee nor any agent of either of them shall be held
accountable by reason of any disclosure of information as to names and addresses of Noteholders
made pursuant to the Trust Indenture Act.

          Section 6.03. Reports by Trustee. (a) The Trustee shall transmit to Noteholders such reports
concerning the Trustee and its actions under this Indenture as may be required pursuant to the
Trust Indenture Act at the times and in the manner provided pursuant thereto. If required by
Section 313(a) of the Trust Indenture Act, the Trustee shall, within 60 days after each May 15
following the date of this Indenture, deliver to Noteholders a brief report, dated as of such May
15, that complies with the provisions of such Section 313(a).

          (b) A copy of each such report shall, at the time of such transmission to Noteholders, be
filed by the Trustee with each stock exchange and automated quotation system upon which the Notes
are listed (if any) and with the Company. The Company will notify the Trustee in writing within a
reasonable time when the Notes are listed on any stock exchange or automated quotation system and
when any such listing is discontinued.

ARTICLE 7

DEFAULTS AND REMEDIES

          Section 7.01. Events of Default. The following events shall be “Events of Default” with
respect to the Notes:

          (a) default in any payment of interest on any Note when due and payable, and the default
continues for a period of 30 days;

          (b) default in the payment of principal of any Note when due and payable on the Maturity Date,
upon required repurchase, upon declaration of acceleration or otherwise;

          (c) failure by the Company to comply with its obligation to convert the Notes into shares of
Common Stock, cash or a combination of cash and shares of Common Stock, as applicable, upon
exercise of a Noteholder’s conversion right and such failure continues for a period of five days;

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          (d) failure by the Company to comply with its obligations under Article 12;

          (e) failure by the Company to issue a notice of a Fundamental Change in accordance with
Section 19.02(b) or a notice of a specified corporate transaction in accordance with Section
15.01(b)(iii) when due;

          (f) failure by the Company to comply with any other agreement contained in the Notes or this
Indenture for a period of 30 days after written notice of such failure is given to the Company by
the Trustee or the Noteholders of at least 25% in principal amount of the Notes then outstanding (a
copy of which notice, if given by Noteholders, also to be given to the Trustee);

          (g) failure by the Company or any Significant Subsidiary of the Company or any Note Guarantor
to pay when due at maturity or a default that results in the acceleration of any indebtedness for
borrowed money of the Company or any Subsidiary of the Company in an aggregate amount of $10
million or more;

          (h) a failure by the Company or any Significant Subsidiary of the Company or Note Guarantor to
pay final judgments aggregating in excess of $10 million (after giving effect to insurance
payments, if any), which judgments are not paid, discharged or stayed for a period of 30 days from
the dates such judgments are entered;

          (i) the Company or any Significant Subsidiary of the Company or any group of Subsidiaries of
the Company that in the aggregate would constitute such a Significant Subsidiary shall commence a
voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect
to the Company or any such Significant Subsidiary or group of Subsidiaries or its debts under any
bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment
of a trustee, receiver, liquidator, custodian or other similar official of the Company or any such
Significant Subsidiary or group of Subsidiaries or any substantial part of its or their property,
or shall consent to any such relief or to the appointment of or taking possession by any such
official in an involuntary case or other proceeding commenced against it or them, or shall make a
general assignment for the benefit of creditors, or shall fail generally to pay its or their debts
as they become due;

          (j) an involuntary case or other proceeding shall be commenced against the Company or any
Significant Subsidiary of the Company or any group of Subsidiaries of the Company that in the
aggregate would constitute a Significant Subsidiary seeking liquidation, reorganization or other
relief with respect to the Company or such Significant Subsidiary or group of Subsidiaries or its
or their debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of
the Company or such Significant Subsidiary or group of Subsidiaries or any substantial part of its
or their property, and such involuntary case or other proceeding shall remain undismissed and
unstayed for a period of 30 consecutive days; or

          (k) the failure of any Note Guarantee to be in full force and effect (except as contemplated
by the terms hereof) or any Note Guarantor or person acting on behalf of such Note Guarantor denies
or disaffirms such Note Guarantor’s obligations under the Indenture or

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any Note Guarantee and such default continues for a period of ten days after receipt of the
notice specified in the following paragraph.

          In case one or more Events of Default shall have occurred and be continuing (whatever the
reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body), then, and in each and every such case
(other than an Event of Default specified in Section 7.01(i) or Section 7.01(j) with respect to the
Company (and not solely with respect to such a Significant Subsidiary or a group of Subsidiaries of
the Company that in aggregate would constitute a Significant Subsidiary of the Company)), unless
the principal of all of the Notes shall have already become due and payable, either the Trustee or
the Noteholders of at least 25% in aggregate principal amount of the Notes then outstanding
determined in accordance with Section 9.04, by notice in writing to the Company (and to the Trustee
if given by Noteholders) and the Lenders, may declare 100% of the principal of and accrued and
unpaid interest on all the Notes to be due and payable on the later to occur of five Business Days
after the signing of such written notice to the Lenders and the date of such declaration, and there
upon the same shall become and shall automatically be immediately due and payable, anything in this
Indenture (other than Article 16) or in the Notes contained to the contrary notwithstanding. If an
Event of Default specified in Section 7.01(i) or Section 7.01(j) with respect to the Company (and
not solely with respect to a Significant Subsidiary of the Company, or a group of Subsidiaries of
the Company that in aggregate would constitute such a Significant Subsidiary of the Company) occurs
and is continuing, the principal of all the Notes and accrued and unpaid interest shall be
immediately due and payable. This provision, however, is subject to the conditions that if, at any
time after the principal of the Notes shall have been so declared due and payable, and before any
judgment or decree for the payment of the monies due shall have been obtained or entered as
hereinafter provided, the Company shall pay or shall deposit with the Trustee a sum sufficient to
pay installments of accrued and unpaid interest upon all Notes and the principal of any and all
Notes that shall have become due otherwise than by acceleration (with interest on overdue
installments of accrued and unpaid interest (to the extent that payment of such interest is
enforceable under applicable law), and on such principal at the rate borne by the Notes at such
time) and amounts due to the Trustee pursuant to Section 8.06, and if (1) rescission would not
conflict with any judgment or decree of a court of competent jurisdiction and (2) any and all
Events of Defaults under this Indenture, other than the nonpayment of principal of and accrued and
unpaid interest on Notes that shall have become due solely by such acceleration, shall have been
cured or waived pursuant to Section 7.07, then and in every such case the Noteholders of a majority
in aggregate principal amount of the Notes then outstanding, by written notice to the Company and
to the Trustee, may waive all Defaults or Events of Default with respect to the Notes (other than a
Default or an Event of Default resulting from nonpayment of principal or interest that shall have
become due otherwise than by acceleration, a failure to repurchase any Notes when required upon a
Fundamental Change or a failure to deliver, upon conversion, cash, shares of Common Stock or a
combination of cash and shares of Common Stock, as applicable, due upon conversion) and rescind and
annul such declaration and its consequences (other than a declaration or consequences, as the case
may be, resulting from nonpayment of principal or
interest that shall have become due otherwise
than by acceleration, a failure to repurchase any Notes when required upon a Fundamental Change or
a failure to deliver, upon conversion, cash, shares of Common Stock or a combination of cash and
shares of Common Stock, as applicable, due upon

35

 

conversion) and such Default (other than a Default resulting from nonpayment of principal or
interest that shall have become due otherwise than by acceleration, a failure to repurchase any
Notes when required upon a Fundamental Change or a failure to deliver, upon conversion, cash,
shares of Common Stock or a combination of cash and shares of Common Stock, as applicable, due upon
conversion) shall cease to exist, and any Event of Default arising therefrom (other than a Default
resulting from nonpayment of principal or interest that shall have become due otherwise than by
acceleration, a failure to repurchase any Notes when required upon a Fundamental Change or a
failure to deliver, upon conversion, cash, shares of Common Stock or a combination of cash and
shares of Common Stock, as applicable, due upon conversion) shall be deemed to have been cured for
every purpose of this Indenture; but no such waiver or rescission and annulment shall extend to or
shall affect any subsequent Default or Event of Default, or shall impair any right consequent
thereon.

          Notwithstanding anything in this Indenture or in the Notes to the contrary, for the first 180
days immediately following any violation of any obligations the Company may be deemed to have
pursuant to (1) Section 314(a)(1) of the Trust Indenture Act, or (2) Section 5.06(b), and the
continuation thereof, if the Company so elects, the sole remedy for any such violation shall be the
accrual of additional interest on the Notes at a rate per year equal to 0.50% of the outstanding
principal amount of the Notes (“Supplementary Interest”), payable semi-annually at the same time
and in the same manner as regular interest on the Notes pursuant to Section 2.03 and Section 5.01.
If Rule 144 Additional Interest is accruing and payable as described under Section 5.09 and the
Company has elected that the accrual of Supplementary Interest be the sole remedy for any violation
or default the Company may be deemed to have pursuant to (1) Section 314(a)(1) of the Trust
Indenture Act, or (2) Section 5.06(b), no Supplementary Interest shall be payable for any such
violation or default caused by the failure of the Company to be current in respect of its Exchange
Act reporting obligations for so long as Rule 144 Additional Interest is also accruing and payable
in accordance with Section 5.09 (it being understood that the provisions of this sentence shall in
no way prejudice the Company’s election to pay Supplementary Interest as the sole remedy for a
violation of Section 314(a)(1) of the Trust Indenture Act or Section 5.06(b) as set forth in this
paragraph). In addition to the accrual of Supplementary Interest, on and after the 180th day, any
violation of any obligations the Company may be deemed to have pursuant to (1) Section 314(a)(1) of
the Trust Indenture Act or (2) Section 5.06(b), either the Trustee or the Noteholders of not less
than 25% in aggregate principal amount of the Notes then outstanding may declare the principal
amount of the Notes and any accrued and unpaid interest through the date of such declaration, to be
immediately due and payable. Whenever in this Indenture there is mentioned, in any context, the
payment of interest on, or in respect of, any Note, such mention shall be deemed to include mention
of the payment of “Supplementary Interest” provided for in this paragraph to the extent that, in
such context, Supplementary Interest is, was or would be payable in respect thereof pursuant to the
provisions of this paragraph, and express mention of the payment of Supplementary Interest (if
applicable) in any provisions hereof shall not be construed as excluding Supplementary Interest in
those provisions hereof where such express mention is not made. The provisions of this paragraph
will not affect the rights of Noteholders in the event of the occurrence of any other Event of
Default.

          In case the Trustee shall have proceeded to enforce any right under this Indenture and such
proceedings shall have been discontinued or abandoned because of such waiver or

36

 

rescission and annulment or for any other reason or shall have been determined adversely to
the Trustee, then and in every such case the Company, the Noteholders, and the Trustee shall,
subject to any determination in such proceeding, be restored respectively to their several
positions and rights hereunder, and all rights, remedies and powers of the Company, the
Noteholders, and the Trustee shall continue as though no such proceeding had been instituted.

          Section 7.02. Payments of Notes on Default; Suit Therefor. If an Event of Default described
in clause (a) or (b) of Section 7.01 shall have occurred, the Company shall, upon demand of the
Trustee, pay to it, for the benefit of the Noteholders, the whole amount then due and payable on
the Notes for principal and interest, with interest on any overdue principal and interest, at the
rate borne by the Notes at such time, and, in addition thereto, such further amount as shall be
sufficient to cover any amounts due to the Trustee under Section 8.06. If the Company shall fail
to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an
express trust, may institute a judicial proceeding for the collection of the sums so due and
unpaid, may prosecute such proceeding to judgment or final decree and may enforce the same against
the Company or any other obligor upon the Notes and collect the moneys adjudged or decreed to be
payable in the manner provided by law out of the property of the Company or any other obligor upon
the Notes, wherever situated.

          In the event there shall be pending proceedings for the bankruptcy or for the reorganization
of the Company or any other obligor on the Notes under title 11 of the United States Code, or any
other applicable law, or in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or taken possession of
the Company or such other obligor, the property of the Company or such other obligor, or in the
event of any other judicial proceedings relative to the Company or such other obligor upon the
Notes, or to the creditors or property of the Company or such other obligor, the Trustee,
irrespective of whether the principal of the Notes shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made
any demand pursuant to the provisions of this Section 7.02, shall be entitled and empowered, by
intervention in such proceedings or otherwise, to file and prove a claim or claims for the whole
amount of principal and accrued and unpaid interest in respect of the Notes, and, in case of any
judicial proceedings, to file such proofs of claim and other papers or documents and to take such
other actions as it may deem 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 of the Noteholders allowed in such judicial proceedings
relative to the Company or any other obligor on the Notes, its or their creditors, or its or their
property, and to collect and receive any monies or other property payable or deliverable on any
such claims, and to distribute the same after the deduction of any amounts due the Trustee under
Section 8.06; and any receiver, assignee or trustee in bankruptcy or reorganization, liquidator,
custodian or similar official is hereby authorized by each of the Noteholders to make such payments
to the Trustee, as administrative expenses, and, in the event that the Trustee shall consent to the
making of such payments directly to the Noteholders, to pay to the Trustee any amount due it for
reasonable compensation, expenses, advances and disbursements, including agents and counsel fees,
and including any other amounts due to the Trustee under Section 8.06, incurred by it up to the
date of such distribution. To the extent that such payment of reasonable compensation, expenses,
advances and disbursements out of the estate in any such proceedings shall be denied for any
reason, payment of the same shall

37

 

be secured by a lien on, and shall be paid out of, any and all distributions, dividends,
monies, securities and other property that the Noteholders 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 accept or adopt on behalf of any Noteholder any plan of reorganization, arrangement, adjustment
or composition affecting the Noteholder or the rights of any Noteholder thereof, or to authorize
the Trustee to vote in respect of the claim of any Noteholder in any such proceeding.

          All rights of action and of asserting claims under this Indenture, or under any of the Notes,
may be enforced by the Trustee without the possession of any of the Notes, or the production
thereof at any trial or other proceeding relative thereto, and any such suit or proceeding
instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any
recovery of judgment shall, after provision for the payment of the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable
benefit of the Noteholders.

          In any proceedings brought by the Trustee (and in any proceedings involving the interpretation
of any provision of this Indenture to which the Trustee shall be a party) the Trustee shall be held
to represent all the Noteholders, and it shall not be necessary to make any Noteholders parties to
any such proceedings.

          Section 7.03. Application of Monies Collected by Trustee. Any monies collected by the Trustee
pursuant to this Article 7 with respect to the Notes shall be applied in the order following, at
the date or dates fixed by the Trustee for the distribution of such monies, upon presentation of
the several Notes, and stamping thereon the payment, if only partially paid, and upon surrender
thereof, if fully paid:

          First, to the payment of all amounts due the Trustee under Section 8.06;

          Second, in case the principal of the outstanding Notes shall not have become due and be
unpaid, to the payment of interest on the Notes, including Supplementary Interest, if any, or Rule
144 Additional Interest, if any, in default in the order of the date due of the installments of
such interest, with interest (to the extent that such interest has been collected by the Trustee)
upon the overdue installments of interest at the rate borne by the Notes at such time, such
payments to be made ratably to the Persons entitled thereto;

          Third, in case the principal of the outstanding Notes shall have become due, by declaration or
otherwise, and be unpaid to the payment of the whole amount including the payment of the
Fundamental Change Repurchase Price and the cash component of the Conversion Obligation, if any,
then owing and unpaid upon the Notes for principal and interest, with interest on the overdue
principal and (to the extent that such interest has been collected by the Trustee) upon overdue
installments of interest at the rate borne by the Notes at such time, and in case such monies shall
be insufficient to pay in full the whole amounts so due and unpaid upon the Notes, then to the
payment of such principal and interest without preference or priority of principal or of interest
over principal or of any installment of interest over any other

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installment of interest, or of any Note over any other Note, ratably to the aggregate of such
principal and accrued and unpaid interest; and

          Fourth, to the payment of the remainder, if any, to the Company.

          Section 7.04. Proceedings by Noteholders. No Noteholder shall have any right by virtue of or
by availing of any provision of this Indenture to institute any suit, action or proceeding in
equity or at law upon or under or with respect to this Indenture, or for the appointment of a
receiver, trustee, liquidator, custodian or other similar official, or for any other remedy
hereunder, unless:

     (i) such Noteholder previously shall have given to the Trustee written notice of an
Event of Default and of the continuance thereof, as hereinbefore provided;

     (ii) the Noteholders of at least 25% in aggregate principal amount of the Notes then
outstanding shall have made written request upon the Trustee to institute such action, suit
or proceeding in its own name as Trustee hereunder and shall have offered to the Trustee
such security or indemnity reasonably satisfactory to it against any loss, liability or
expense to be incurred therein or thereby;

     (iii) the Trustee for 60 days after its receipt of such notice, request and offer of
indemnity, shall have neglected or refused to institute any such action, suit or proceeding;
and

     (iv) no direction that, in the opinion of the Trustee, is inconsistent with such
written request shall have been given to the Trustee by the holders of a majority in
principal amount of the Notes outstanding within such 60-day period pursuant to Section
7.07;

it being understood and intended, and being expressly covenanted by the taker and holder of every
Note with every other taker and holder and the Trustee that no one or more Noteholders shall have
any right in any manner whatever by virtue of or by availing of any provision of this Indenture to
affect, disturb or prejudice the rights of any other Noteholder, or to obtain or seek to obtain
priority over or preference to any other such holder, or to enforce any right under this Indenture,
except in the manner herein provided and for the equal, ratable and common benefit of all
Noteholders (except as otherwise provided herein). For the protection and enforcement of this
Section 7.04, each and every Noteholder and the Trustee shall be entitled to such relief as can be
given either at law or in equity.

          Notwithstanding any other provision of this Indenture and any provision of any Note, the right
of any Noteholder to receive payment of the principal of and accrued and unpaid interest on such
Note (or conversion consideration due upon conversion) on or after the respective due dates
expressed or provided for in such Note or in this Indenture, or to institute suit for the
enforcement of any such payment or conversion consideration on or after such respective dates
against the Company shall not be impaired or affected without the consent of such Noteholder.

          Anything in this Indenture or the Notes to the contrary notwithstanding, the

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holder of any Note, without the consent of either the Trustee or the holder of any other Note,
in its own behalf and for its own benefit, may enforce, and may institute and maintain any
proceeding suitable to enforce, its rights of conversion as provided herein.

          Section 7.05. Proceedings by Trustee. In case of an Event of Default the Trustee may in its
discretion proceed to protect and enforce the rights vested in it by this Indenture by such
appropriate judicial proceedings as are necessary to protect and enforce any of such rights, either
by suit in equity or by action at law or by proceeding in bankruptcy or otherwise, whether for the
specific enforcement of any covenant or agreement contained in this Indenture or in aid of the
exercise of any power granted in this Indenture, or to enforce any other legal or equitable right
vested in the Trustee by this Indenture or by law.

          Section 7.06. Remedies Cumulative and Continuing. Except as provided in the last paragraph of
Section 2.07, all powers and remedies given by this Article 7 to the Trustee or to the Noteholders
shall, to the extent permitted by law, be deemed cumulative and not exclusive of any thereof or of
any other powers and remedies available to the Trustee or the Noteholders, by judicial proceedings
or otherwise, to enforce the performance or observance of the covenants and agreements contained in
this Indenture, and no delay or omission of the Trustee or of any holder of any of the Notes to
exercise any right or power accruing upon any Default or Event of Default shall impair any such
right or power, or shall be construed to be a waiver of any such Default or any acquiescence
therein; and, subject to the provisions of Section 7.04, every power and remedy given by this
Article 7 or by law to the Trustee or to the Noteholders may be exercised from time to time, and as
often as shall be deemed expedient, by the Trustee or by the Noteholders.

          Section 7.07. Direction of Proceedings and Waiver of Defaults by Majority of Noteholders. The
Noteholders of a majority in aggregate principal amount of the Notes at the time outstanding
determined in accordance with Section 9.04 shall have the right to 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 the Trustee with respect to Notes; provided, however, that (a) such direction
shall not be in conflict with any rule of law or with this Indenture, and (b) the Trustee may take
any other action deemed proper by the Trustee that is not inconsistent with such direction. The
Trustee may refuse to follow any direction that it determines is unduly prejudicial to the rights
of any other Noteholder or that would involve the Trustee in personal liability. The Noteholders
of a majority in aggregate principal amount of the Notes at the time outstanding (including,
without limitation, consents obtained in connection with a purchase of, or tender offer or exchange
offer for, Notes) determined in accordance with Section 9.04 may on behalf of the Noteholders of
all of the Notes waive any past Default or Event of Default hereunder and its consequences except:

     (i) a default in the payment of accrued and unpaid interest on, or the principal
(including any Fundamental Change Repurchase Price) of, the Notes when due that has not been
cured pursuant to the provisions of Section 7.01;

     (ii) a failure by the Company to deliver cash, shares of Common Stock or a combination
of cash and shares of Common Stock, as applicable, upon conversion of the Notes; or

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     (iii) a default in respect of a covenant or provision hereof which under Article 11
cannot be modified or amended without the consent of each holder of an outstanding Note
affected.

          Upon any such waiver the Company, the Trustee and the Noteholders shall be restored to their
former positions and rights hereunder; but no such waiver shall extend to any subsequent or other
Default or Event of Default or impair any right consequent thereon. Whenever any Default or Event
of Default hereunder shall have been waived as permitted by this Section 7.07, said Default or
Event of Default shall for all purposes of the Notes and this Indenture be deemed to have been
cured and to be not continuing; but no such waiver shall extend to any subsequent or other Default
or Event of Default or impair any right consequent thereon.

          Section 7.08. Notice of Defaults. The Trustee shall, within 90 days after the occurrence and
continuance of a Default of which a Responsible Officer has actual knowledge, mail to all
Noteholders as the names and addresses of such holders appear upon the Note Register, notice of all
Defaults known to a Responsible Officer, unless such Defaults shall have been cured or waived
before the giving of such notice; and provided that, except in the case of a Default in the payment
of the principal of, or accrued and unpaid interest on, any of the Notes, including without
limiting the generality of the foregoing any Default in the payment of any Fundamental Change
Repurchase Price, then in any such event the Trustee shall be protected in withholding such notice
if and so long as a committee of Responsible Officers of the Trustee in good faith determine that
the withholding of such notice is in the interests of the Noteholders.

          Section 7.09. Undertaking to Pay Costs. All parties to this Indenture agree, and each
Noteholder by its acceptance thereof shall be deemed to have agreed, that any court may, in its
discretion, require, 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, the filing by
any party litigant in such suit of an undertaking to pay the costs of such suit and that such court
may in its discretion assess reasonable costs, including reasonable attorneys’ fees and expenses,
against any party litigant in such suit, having due regard to the merits and good faith of the
claims or defenses made by such party litigant; provided that the provisions of this Section 7.09
(to the extent permitted by law) shall not apply to any suit instituted by the Trustee, to any suit
instituted by any Noteholder, or group of Noteholders, holding in the aggregate more than 10% in
principal amount of the Notes at the time outstanding determined in accordance with Section 9.04,
or to any suit instituted by any Noteholder for the enforcement of the payment of the principal of,
or accrued and unpaid interest on, any Note (including, but not limited to, the Fundamental Change
Repurchase Price with respect to the Notes being repurchased as provided in this Indenture) on or
after the due date expressed or provided for in such Note or to any suit for the enforcement of the
right to convert any Note in accordance with the provisions of Article 15.

ARTICLE 8

CONCERNING THE TRUSTEE

          Section 8.01. Duties and Responsibilities of Trustee. The Trustee, prior to the occurrence of
an Event of Default and after the curing or waiver of all Events of Default that may have occurred,
undertakes to perform such duties and only such duties as are specifically set

41

 

forth in this Indenture. In case an Event of Default has occurred (which has not been cured
or waived), 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 their exercise, as a prudent person would
exercise or use under the circumstances in the conduct of such person’s own affairs; provided that
if an Event of Default occurs and is continuing, the Trustee will be under no obligation to
exercise any of the rights or powers under this Indenture at the request or direction of any of the
Noteholders unless such Noteholders have offered to the Trustee indemnity or security satisfactory
to it against the costs, expenses and liabilities that might be incurred by it in compliance with
such request or direction.

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

          (a) prior to the occurrence of an Event of Default and after the curing or waiving of all
Events of Default that may have occurred:

          (i) the duties and obligations of the Trustee shall be determined solely by the express
provisions of this Indenture and, after it has been qualified thereunder, the Trust
Indenture Act, and the Trustee shall not be liable except for the performance of such duties
and obligations as are specifically set forth in this Indenture and no implied covenants or
obligations shall be read into this Indenture and the Trust Indenture Act against the
Trustee; and

          (ii) in the absence of bad faith and willful misconduct on the part of the Trustee, the
Trustee may conclusively rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon any certificates or opinions furnished to the Trustee and
conforming to the requirements of this Indenture; but, in the case of any such certificates
or opinions that by any provisions hereof are specifically required to be furnished to the
Trustee, the Trustee shall be under a duty to examine the same to determine whether or not
they conform to the requirements of this Indenture (but need not confirm or investigate the
accuracy of any mathematical calculations or other facts stated therein);

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

          (c) the Trustee shall not be liable with respect to any action taken or omitted to be taken by
it in good faith in accordance with the direction of the holders of not less than a majority in
principal amount of the Notes at the time outstanding determined as provided in Section 9.04
relating to the time, method and place of conducting any proceeding for any remedy available to the
Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture;

42

 

          (d) whether or not therein provided, every provision of this Indenture relating to the conduct
or affecting the liability of, or affording protection to, the Trustee shall be subject to the
provisions of this Section;

          (e) the Trustee shall not be liable in respect of any payment (as to the correctness of
amount, entitlement to receive or any other matters relating to payment) or notice effected by the
Company or any Paying Agent or any records maintained by any co-registrar with respect to the
Notes;

          (f) if any party fails to deliver a notice relating to an event the fact of which, pursuant to
this Indenture, requires notice to be sent to the Trustee, the Trustee may conclusively rely on its
failure to receive such notice as reason to act as if no such event occurred, unless such
Responsible Officer of the Trustee had actual knowledge of such event;

          (g) in the absence of written investment direction from the Company, all cash received by the
Trustee shall be placed in a non-interest bearing trust account, and in no event shall the Trustee
be liable for the selection of investments or for investment losses incurred thereon or for losses
incurred as a result of the liquidation of any such investment prior to its maturity date or the
failure of the party directing such investments prior to its maturity date or the failure of the
party directing such investment to provide timely written investment direction, and the Trustee
shall have no obligation to invest or reinvest any amounts held hereunder in the absence of such
written investment direction from the Company; and

          (h) in the event that the Trustee is also acting as Custodian, Note Registrar, Paying Agent,
Conversion Agent or transfer agent hereunder, the rights, privileges, benefits, immunities,
indemnities and protections afforded to the Trustee pursuant to this Indenture (including without
limitation this Article 8) shall also be afforded to such Custodian, Note Registrar, Paying Agent,
Conversion Agent or transfer agent.

          None of the provisions contained in this Indenture shall require the Trustee to expend or risk
its own funds or otherwise incur personal financial liability in the performance of any of its
duties or in the exercise of any of its rights or powers.

          Section 8.02. Reliance on Documents, Opinions, Etc. Except as otherwise provided in Section
8.01:

          (a) the Trustee may conclusively rely and shall be fully protected in acting upon any
resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order,
bond, Note, coupon or other paper or document believed by it in good faith to be genuine and to
have been signed or presented by the proper party or parties;

          (b) any request, direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by an Officers’ Certificate (unless other evidence in respect thereof be
herein specifically prescribed); and any Board Resolution may be evidenced to the Trustee by a copy
thereof certified by the Secretary or an Assistant Secretary of the Company;

          (c) the Trustee may consult with counsel and require an opinion of counsel and any advice of
such counsel or Opinion of Counsel shall be full and complete authorization

43

 

and protection in respect of any action taken or omitted by it hereunder in good faith and in
accordance with such advice or Opinion of Counsel;

          (d) the Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request, order or direction of any of the Noteholders pursuant to the
provisions of this Indenture, unless such Noteholders shall have offered to the Trustee security or
indemnity satisfactory to it against the costs, expenses and liabilities that may be incurred
therein or thereby;

          (e) the Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture or other paper or 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
expense of the Company and shall incur no liability of any kind by reason of such inquiry or
investigation;

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

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

          In no event shall the Trustee be liable for any 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 other than any such loss or
damage caused by the Trustee’s willful misconduct or negligence. The Trustee shall not be charged
with knowledge of any Default or Event of Default with respect to the Notes, unless either (1) a
Responsible Officer shall have actual knowledge of such Default or Event of Default or (2) written
notice of such Default or Event of Default shall have been given to the Trustee by the Company or
by any holder of the Notes.

          Section 8.03. No Responsibility for Recitals, Etc. The recitals contained herein and in the
Notes (except in the Trustee’s certificate of authentication) shall be taken as the statements of
the Company, and the Trustee assumes no responsibility for the correctness of the same. The
Trustee makes no representations as to the validity or sufficiency of this Indenture or of the
Notes. The Trustee shall not be accountable for the use or application by the Company of any Notes
or the proceeds of any Notes authenticated and delivered by the Trustee in conformity with the
provisions of this Indenture.

          Section 8.04. Trustee, Paying Agents, Conversion Agents or Registrar May Own Notes. The
Trustee, any Paying Agent, any Conversion Agent or Note Registrar, in its individual or any other
capacity, may become the owner or pledgee of Notes with the same rights it would have if it were
not the Trustee, Paying Agent, Conversion Agent or Note Registrar.

44

 

          Section 8.05. Monies to Be Held in Trust. All monies received by the Trustee shall, until
used or applied as herein provided, be held in trust for the purposes for which they were received.
Money held by the Trustee in trust hereunder need not be segregated from other funds except to the
extent required by law. The Trustee shall be under no liability for interest on any money received
by it hereunder except as may be agreed from time to time by the Company and the Trustee.

          Section 8.06. Compensation and Expenses of Trustee. The Company covenants and agrees to pay
to the Trustee from time to time, and the Trustee shall be entitled to, reasonable compensation for
all services rendered by it hereunder in any capacity (which shall not be limited by any provision
of law in regard to the compensation of a trustee of an express trust) as mutually agreed to in
writing between the Trustee and the Company, and the Company will pay or reimburse the Trustee upon
its request for all expenses, disbursements and advances reasonably incurred or made by the Trustee
in accordance with any of the provisions of this Indenture in any capacity thereunder (including
the reasonable compensation and the expenses and disbursements of its agents and counsel and of all
Persons not regularly in its employ) except any such expense, disbursement or advance as shall have
been caused by its negligence, willful misconduct or bad faith. Each of the Company and the Note
Guarantors, jointly and severally, also covenants to indemnify the Trustee in any capacity under
this Indenture and any other document or transaction entered into in connection herewith and its
agents and any authenticating agent for, and to hold them harmless against, any loss, claim,
damage, liability or expense incurred without negligence, willful misconduct or bad faith on the
part of the Trustee, its officers, directors, agents or employees, or such agent or authenticating
agent, as the case may be, and arising out of or in connection with the acceptance or
administration of this trust or in any other capacity hereunder, including the costs and expenses
of defending themselves against any claim of liability in the premises. The obligations of the
Company under this Section 8.06 to compensate or indemnify the Trustee and to pay or reimburse the
Trustee for expenses, disbursements and advances shall be secured by a senior claim to which the
Notes are hereby made subordinate on all money or property held or collected by the Trustee,
except, subject to the effect of Section 7.03, funds held in trust herewith for the benefit of the
holders of particular Notes. The Trustee’s right to receive payment of any amounts due under this
Section 8.06 shall not be subordinate to any other liability or indebtedness of the Company (even
though the Notes may be so subordinated). The obligation of the Company under this Section 8.06
shall survive the satisfaction and discharge of this Indenture and the earlier resignation or
removal or the Trustee. The Company need not pay for any settlement made without its consent,
which consent shall not be unreasonably withheld. The indemnification provided in this Section
8.06 shall extend to the officers, directors, agents and employees of the Trustee.

          Without prejudice to any other rights available to the Trustee under applicable law, when the
Trustee and its agents and any authenticating agent incur expenses or render services after an
Event of Default specified in Section 7.01(i) or Section 7.01(j) occurs, the expenses and the
compensation for the services are intended to constitute expenses of administration under any
bankruptcy, insolvency or similar laws.

          Section 8.07. Officers’ Certificate as Evidence. Except as otherwise provided in Section
8.01, whenever in the administration of the provisions of this Indenture the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to taking or omitting

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any action hereunder, such matter (unless other evidence in respect thereof be herein
specifically prescribed) may, in the absence of negligence, willful misconduct, recklessness and
bad faith on the part of the Trustee, be deemed to be conclusively proved and established by an
Officers’ Certificate delivered to the Trustee, and such Officers’ Certificate, in the absence of
negligence, willful misconduct, recklessness and bad faith on the part of the Trustee, shall be
full warrant to the Trustee for any action taken or omitted by it under the provisions of this
Indenture upon the faith thereof.

          Section 8.08. Conflicting Interests of Trustee. After qualification of this Indenture under
the Trust Indenture Act, if the Trustee has or shall acquire a conflicting interest within the
meaning of the Trust Indenture Act, the Trustee shall either (a) eliminate such interest within 90
days, (b) apply to the SEC for permission to continue as Trustee or (c) resign, to the extent and
in the manner provided by, and subject to the provisions of, the Trust Indenture Act and this
Indenture.

          Section 8.09. Eligibility of Trustee. There shall at all times be a Trustee hereunder which
shall be a Person that is eligible pursuant to the Trust Indenture Act to act as such and has a
combined capital and surplus of at least $50,000,000. If such Person publishes reports of
condition at least annually, pursuant to law or to the requirements of any supervising or examining
authority, then for the purposes of this Section, the combined capital and surplus of such Person
shall be deemed to be its combined capital and surplus as set forth in its most recent report of
condition so published. If at any time the Trustee shall cease to be eligible in accordance with
the provisions of this Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article.

          Section 8.10. Resignation or Removal of Trustee. (a) The Trustee may at any time resign by
giving written notice of such resignation to the Company and by mailing notice thereof to the
Noteholders at their addresses as they shall appear on the Note Register. Upon receiving such
notice of resignation, the Company shall promptly appoint a successor trustee by written
instrument, in duplicate, executed by order of the Board of Directors, one copy of which instrument
shall be delivered to the resigning Trustee and one copy to the successor trustee. If no successor
trustee shall have been so appointed and have accepted appointment within 60 days after the mailing
of such notice of resignation to the Noteholders, the resigning Trustee may, upon ten Business
Days’ notice to the Company and the Noteholders, petition at the expense of the Company any court
of competent jurisdiction for the appointment of a successor trustee, or any Noteholder who has
been a bona fide holder of a Note or Notes for at least one year may, subject to the provisions of
Section 7.09, on behalf of himself and all others similarly situated, petition any such court for
the appointment of a successor trustee. Such court may thereupon, after such notice, if any, as it
may deem proper and prescribe, appoint a successor trustee.

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

          (i) the Trustee shall fail to comply with Section 8.08 within a reasonable time after
written request therefor by the Company or by any Noteholder who has been a bona fide holder
of a Note or Notes for at least one year, or

46

 

          (ii) the Trustee shall cease to be eligible in accordance with the provisions of
Section 8.09 and shall fail to resign after written request therefor by the Company or by
any such Noteholder, or

          (iii) the Trustee shall become incapable of acting, or shall be adjudged a bankrupt or
insolvent, or a receiver of the Trustee or of its property shall be appointed, or any public
officer shall take charge or control of the Trustee or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation,

then, in any such case, the Company may by a Board Resolution remove the Trustee and appoint a
successor trustee by written instrument, in duplicate, executed by order of the Board of Directors,
one copy of which instrument shall be delivered to the Trustee so removed and one copy to the
successor trustee, or, subject to the provisions of Section 7.09, any Noteholder who has been a
bona fide holder of a Note or Notes for at least one year 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. Such court may thereupon, after such notice, if any, as it
may deem proper and prescribe, remove the Trustee and appoint a successor trustee.

          (c) The holders of a majority in aggregate principal amount of the Notes at the time
outstanding, as determined in accordance with Section 9.04, may at any time remove the Trustee and
nominate a successor trustee that shall be deemed appointed as successor trustee unless within ten
days after notice to the Company of such nomination the Company objects thereto, in which case the
Trustee so removed, at the expense of the Company, or any Noteholder, upon the terms and conditions
and otherwise as in Section 8.10(a) provided, may petition any court of competent jurisdiction for
an appointment of a successor trustee.

          (d) Any resignation or removal of the Trustee and appointment of a successor trustee pursuant
to any of the provisions of this Section 8.10 shall become effective upon acceptance of appointment
by the successor trustee as provided in Section 8.11.

          Section 8.11. Acceptance by Successor Trustee. Any successor trustee appointed as provided in
Section 8.10 shall execute, acknowledge and deliver to the Company and to its predecessor trustee
an instrument accepting such appointment hereunder, and thereupon the resignation or removal of the
predecessor trustee shall become effective and such successor trustee, without any further act,
deed or conveyance, shall become vested with all the rights, powers, duties and obligations of its
predecessor hereunder, with like effect as if originally named as trustee herein; but,
nevertheless, on the written request of the Company or of the successor trustee, the trustee
ceasing to act shall, upon payment of any amounts then due it pursuant to the provisions of Section
8.06, execute and deliver an instrument transferring to such successor trustee all the rights and
powers of the trustee so ceasing to act. Upon request of any such successor trustee, the Company
shall execute any and all instruments in writing for more fully and certainly vesting in and
confirming to such successor trustee all such rights and powers. Any trustee ceasing to act shall,
nevertheless, retain a senior claim to which the Notes are hereby made subordinate on all money or
property held or collected by such trustee as such, except for funds held in trust for the benefit
of holders of particular Notes, to secure any amounts then due it pursuant to the provisions of
Section 8.06.

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          No successor trustee shall accept appointment as provided in this Section 8.11 unless at the
time of such acceptance such successor trustee shall be qualified under the provisions of Section
8.08 and be eligible under the provisions of Section 8.09.

          Upon acceptance of appointment by a successor trustee as provided in this Section 8.11, each
of the Company and the successor trustee, at the written direction and at the expense of the
Company shall mail or cause to be mailed notice of the succession of such trustee hereunder to the
Noteholders at their addresses as they shall appear on the Note Register. If the Company fails to
mail such notice within ten days after acceptance of appointment by the successor trustee, the
successor trustee shall cause such notice to be mailed at the expense of the Company.

          Section 8.12. Succession by Merger, Etc. Any corporation or other entity into which the
Trustee may be merged or converted or with which it may be consolidated, or any corporation or
other entity resulting from any merger, conversion or consolidation to which the Trustee shall be a
party, or any corporation or other entity succeeding to all or substantially all of the corporate
trust business of the Trustee (including the administration of this Indenture), shall be the
successor to the Trustee hereunder without the execution or filing of any paper or any further act
on the part of any of the parties hereto, provided that in the case of any corporation or other
entity succeeding to all or substantially all of the corporate trust business of the Trustee such
corporation or other entity shall be qualified under the provisions of Section 8.08 and eligible
under the provisions of Section 8.09.

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

          Section 8.13. Limitation on Rights of Trustee as Creditor. If and when the Trustee shall be
or become a creditor of the Company (or any other obligor upon the Notes), after qualification
under the Trust Indenture Act, the Trustee shall be subject to the provisions of the Trust
Indenture Act regarding the collection of the claims against the Company (or any such other
obligor).

          Section 8.14. Trustee’s Application for Instructions from the Company. Any application by the
Trustee for written instructions from the Company (other than with regard to any action proposed to
be taken or omitted to be taken by the Trustee that affects the rights of the Noteholders under
this Indenture) may, at the option of the Trustee, set forth in writing any action proposed to be
taken or omitted by the Trustee under this Indenture and the date on and/or

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after which such action shall be taken or such omission shall be effective. The Trustee shall
not be liable for any action taken by, or omission of, the Trustee in accordance with a proposal
included in such application on or after the date specified in such application (which date shall
not be less than three Business Days after the date any officer that the Company has indicated to
the Trustee should receive such application actually receives such application, unless any such
officer shall have consented in writing to any earlier date), unless, prior to taking any such
action (or the effective date in the case of any omission), the Trustee shall have received written
instructions in accordance with this Indenture in response to such application specifying the
action to be taken or omitted.

ARTICLE 9

CONCERNING THE NOTEHOLDERS

          Section 9.01. Action by Noteholders. Whenever in this Indenture it is provided that the
Noteholders of a specified percentage in aggregate principal amount of the Notes may take any
action (including the making of any demand or request, the giving of any notice, consent or waiver
or the taking of any other action), the fact that at the time of taking any such action, the
Noteholders of such specified percentage have joined therein may be evidenced by:

     (a) any instrument or any number of instruments of similar tenor executed by
Noteholders in person or by agent or proxy appointed in writing;

     (b) the record of the Noteholders voting in favor thereof at any meeting of Noteholders
duly called and held in accordance with the provisions of Article 10; or

     (c) a combination of such instrument or instruments and any such record of such a
meeting of Noteholders. Whenever the Company or the Trustee solicits the taking of any
action by the Noteholders, the Company or the Trustee may fix, but shall not be required to,
in advance of such solicitation, a date as the record date for determining Noteholders
entitled to take such action. The record date if one is selected shall be not more than 15
days prior to the date of commencement of solicitation of such action.

          Section 9.02. Proof of Execution by Noteholders. Subject to the provisions of Section 8.01,
Section 8.02 and Section 10.05, proof of the execution of any instrument by a Noteholder or its
agent or proxy shall be sufficient if made in accordance with such reasonable rules and regulations
as may be prescribed by the Trustee or in such manner as shall be satisfactory to the Trustee. The
holding of Notes shall be proved by the Note Register or by a certificate of the Note Registrar.
The record of any Noteholders’ meeting shall be proved in the manner provided in Section 10.06.

          Section 9.03. Who Are Deemed Absolute Owners. The Company, the Trustee, any authenticating
agent, any Paying Agent, any Conversion Agent and any Note Registrar may deem the Person in whose
name a Note shall be registered upon the Note Register to be, and may treat it as, the absolute
owner of such Note (whether or not such Note shall be overdue and notwithstanding any notation of
ownership or other writing thereon made by any Person other than the Company or any Note Registrar)
for the purpose of receiving payment of or on account of the principal of and (subject to Section
2.03) accrued and unpaid interest on such Note, for

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conversion of such Note and for all other purposes; and neither the Company nor the Trustee
nor any Paying Agent nor any Conversion Agent nor any Note Registrar shall be affected by any
notice to the contrary. All such payments so made to any holder for the time being, or upon its
order, shall be valid, and, to the extent of the sum or sums so paid, effectual to satisfy and
discharge the liability for monies payable upon any such Note. Notwithstanding anything to the
contrary in this Indenture or the Notes following an Event of Default, any holder of a beneficial
interest in a Global Note may directly enforce against the Company, without the consent,
solicitation, proxy, authorization or any other action of the Depositary or any other Person, such
holder’s right to exchange such beneficial interest for a Note in certificated form in accordance
with the provisions of this Indenture.

          Section 9.04. Company-Owned Notes Disregarded. In determining whether the Noteholders of the
requisite aggregate principal amount of Notes have concurred in any direction, consent, waiver or
other action under this Indenture, Notes that are owned by the Company or by any Person directly or
indirectly controlling or controlled by or under direct or indirect common control with the Company
shall be disregarded and deemed not to be outstanding for the purpose of any such determination;
provided that for the purposes of determining whether the Trustee shall be protected in relying on
any such direction, consent, waiver or other action only Notes that a Responsible Officer knows are
so owned shall be so disregarded. Notes so owned that have been pledged in good faith may be
regarded as outstanding for the purposes of this Section 9.04 if the pledgee shall establish to the
satisfaction of the Trustee the pledgee’s right to so act with respect to such Notes and that the
pledgee is not the Company or a Person directly or indirectly controlling or controlled by or under
direct or indirect common control with the Company. In the case of a dispute as to such right, any
decision by the Trustee taken upon the advice of counsel shall be full protection to the Trustee.
Upon request of the Trustee, the Company shall furnish to the Trustee promptly an Officers’
Certificate listing and identifying all Notes, if any, known by the Company to be owned or held by
or for the account of any of the above described Persons; and, subject to Section 8.01, the Trustee
shall be entitled to accept such Officers’ Certificate as conclusive evidence of the facts therein
set forth and of the fact that all Notes not listed therein are outstanding for the purpose of any
such determination.

          Section 9.05. Revocation of Consents; Future Noteholders Bound. At any time prior to (but not
after) the evidencing to the Trustee, as provided in Section 9.01, of the taking of any action by
the Noteholders of the percentage in aggregate principal amount of the Notes specified in this
Indenture in connection with such action, any holder of a Note that is shown by the evidence to be
included in the Notes the holders of which have consented to such action may, by filing written
notice with the Trustee at its Corporate Trust Office and upon proof of holding as provided in
Section 9.02, revoke such action so far as concerns such Note. Except as aforesaid, any such
action taken by the holder of any Note shall be conclusive and binding upon such holder and upon
all future holders and owners of such Note and of any Notes issued in exchange or substitution
therefor or upon registration of transfer thereof, irrespective of whether any notation in regard
thereto is made upon such Note or any Note issued in exchange or substitution therefor or upon
registration of transfer thereof.

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ARTICLE 10

NOTEHOLDERS’ MEETINGS

          Section 10.01. Purpose of Meetings. A meeting of Noteholders may be called at any time and
from time to time pursuant to the provisions of this Article 10 for any of the following purposes:

          (a) to give any notice to the Company or to the Trustee or to give any directions to the
Trustee permitted under this Indenture, or to consent to the waiving of any Default or Event of
Default hereunder and its consequences, or to take any other action authorized to be taken by
Noteholders pursuant to any of the provisions of Article 7;

          (b) to remove the Trustee and nominate a successor trustee pursuant to the provisions of
Article 8;

          (c) to consent to the execution of an indenture or indentures supplemental hereto pursuant to
the provisions of Section 11.02; or

          (d) to take any other action authorized to be taken by or on behalf of the holders of any
specified aggregate principal amount of the Notes under any other provision of this Indenture or
under applicable law.

          Section 10.02. Call of Meetings by Trustee. The Trustee may at any time call a meeting of
Noteholders to take any action specified in Section 10.01, to be held at such time and at such
place as the Trustee shall determine. Notice of every meeting of the Noteholders, setting forth
the time and the place of such meeting and in general terms the action proposed to be taken at such
meeting and the establishment of any record date pursuant to Section 9.01, shall be mailed to
holders of such Notes at their addresses as they shall appear on the Note Register. Such notice
shall also be mailed to the Company. Such notices shall be mailed not less than 20 nor more than
90 days prior to the date fixed for the meeting.

          Any meeting of Noteholders shall be valid without notice if the holders of all Notes then
outstanding are present in person or by proxy or if notice is waived before or after the meeting by
the holders of all Notes outstanding, and if the Company and the Trustee are either present by duly
authorized representatives or have, before or after the meeting, waived notice.

          Section 10.03. Call of Meetings by Company or Noteholders. In case at any time the Company,
pursuant to a Board Resolution, or the holders of at least 10% in aggregate principal amount of the
Notes then outstanding, shall have requested the Trustee to call a meeting of Noteholders, by
written request setting forth in reasonable detail the action proposed to be taken at the meeting,
and the Trustee shall not have mailed the notice of such meeting within 20 days after receipt of
such request, then the Company or such Noteholders may determine the time and the place for such
meeting and may call such meeting to take any action authorized in Section 10.01, by mailing notice
thereof as provided in Section 10.02.

          Section 10.04. Qualifications for Voting. To be entitled to vote at any meeting of
Noteholders a Person shall (a) be a holder of one or more Notes on the record date pertaining to
such meeting or (b) be a Person appointed by an instrument in writing as proxy by a holder of

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one or more Notes on the record date pertaining to such meeting. The only Persons who shall
be entitled to be present or to speak at any meeting of Noteholders shall be the Persons entitled
to vote at such meeting and their counsel and any representatives of the Trustee and its counsel
and any representatives of the Company and its counsel.

          Section 10.05. Regulations. Notwithstanding any other provisions of this Indenture, the
Trustee may make such reasonable regulations as it may deem advisable for any meeting of
Noteholders, in regard to proof of the holding of Notes and of the appointment of proxies, and in
regard to the appointment and duties of inspectors of votes, the submission and examination of
proxies, certificates and other evidence of the right to vote, and such other matters concerning
the conduct of the meeting as it shall think fit.

          The Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting,
unless the meeting shall have been called by the Company or by Noteholders as provided in Section
10.03, in which case the Company or the Noteholders calling the meeting, as the case may be, shall
in like manner appoint a temporary chairman. A permanent chairman and a permanent secretary of the
meeting shall be elected by vote of the holders of a majority in principal amount of the Notes
represented at the meeting and entitled to vote at the meeting.

          Subject to the provisions of Section 9.04, at any meeting of Noteholders each Noteholder or
proxyholder shall be entitled to one vote for each $1,000 principal amount of Notes held or
represented by him; provided, however, that no vote shall be cast or counted at any meeting in
respect of any Note challenged as not outstanding and ruled by the chairman of the meeting to be
not outstanding. The chairman of the meeting shall have no right to vote other than by virtue of
Notes held by it or instruments in writing as aforesaid duly designating it as the proxy to vote on
behalf of other Noteholders. Any meeting of Noteholders duly called pursuant to the provisions of
Section 10.02 or Section 10.03 may be adjourned from time to time by the holders of a majority of
the aggregate principal amount of Notes represented at the meeting, whether or not constituting a
quorum, and the meeting may be held as so adjourned without further notice.

          Section 10.06. Voting. The vote upon any resolution submitted to any meeting of Noteholders
shall be by written ballot on which shall be subscribed the signatures of the Noteholders or of
their representatives by proxy and the outstanding principal amount of the Notes held or
represented by them. The permanent chairman of the meeting shall appoint two inspectors of votes
who shall count all votes cast at the meeting for or against any resolution and who shall make and
file with the secretary of the meeting their verified written reports in duplicate of all votes
cast at the meeting. A record in duplicate of the proceedings of each meeting of Noteholders shall
be prepared by the secretary of the meeting and there shall be attached to said record the original
reports of the inspectors of votes on any vote by ballot taken thereat and affidavits by one or
more Persons having knowledge of the facts setting forth a copy of the notice of the meeting and
showing that said notice was mailed as provided in Section 10.02. The record shall show the
principal amount of the Notes voting in favor of or against any resolution. The record shall be
signed and verified by the affidavits of the permanent chairman and secretary of the meeting and
one of the duplicates shall be delivered to the Company and the other to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting.

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          Any record so signed and verified shall be conclusive evidence of the matters therein stated.

          Section 10.07. No Delay of Rights by Meeting. Nothing contained in this Article 10 shall be
deemed or construed to authorize or permit, by reason of any call of a meeting of Noteholders or
any rights expressly or impliedly conferred hereunder to make such call, any hindrance or delay in
the exercise of any right or rights conferred upon or reserved to the Trustee or to the Noteholders
under any of the provisions of this Indenture or of the Notes.

ARTICLE 11

SUPPLEMENTAL INDENTURES

          Section 11.01. Supplemental Indentures Without Consent of Noteholders. The Company, when
authorized by a Board Resolution, and the Trustee, at the Company’s expense, may from time to time
and at any time enter into an indenture or indentures supplemental hereto for one or more of the
following purposes:

          (a) to cure any ambiguity, omission, defect or inconsistency in this Indenture;

          (b) to provide for the assumption by a Successor Company of the obligations of the Company or
any Note Guarantor under this Indenture pursuant to Article 12;

          (c) to add guarantees with respect to the Notes or release a Guarantor in accordance with the
terms of this Indenture;

          (d) to secure the Notes;

          (e) to add to the covenants of the Company such further covenants, restrictions or conditions
for the benefit of the Noteholders or surrender any right or power conferred upon the Company;

          (f) to make any other change that does not materially adversely affect the rights of any
holder;

          (g) to comply with any requirements of the SEC in connection with the qualification of this
Indenture under the Trust Indenture Act; or

          (h) to conform the terms of this Indenture or the Notes to the description thereof in the
Offering Memorandum.

          The Trustee is hereby authorized to join with the Company in the execution of any such
supplemental indenture, to make any further appropriate agreements and stipulations that may be
therein contained, but the Trustee shall not be obligated to, but may in its discretion, enter into
any supplemental indenture that affects the Trustee’s own rights, duties or immunities under this
Indenture or otherwise.

          Any supplemental indenture authorized by the provisions of this Section 11.01 may be executed
by the Company and the Trustee without the consent of the holders of any of

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the Notes at the time outstanding, notwithstanding any of the provisions of Section 11.02.

          Section 11.02. Supplemental Indentures With Consent of Noteholders. With the consent
(evidenced as provided in Article 9) of the Noteholders of at least a majority in aggregate
principal amount of the Notes at the time outstanding (determined in accordance with Article 9 and
including, without limitation, consents obtained in connection with a purchase of, or tender offer
or exchange offer for, Notes), the Company, when authorized by a Board Resolution and the Trustee,
at the Company’s expense, may from time to time and at any time enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Indenture or any supplemental indenture or of
modifying in any manner the rights of the Noteholders; provided, however, that no such supplemental
indenture shall:

          (a) reduce the percentage in aggregate principal amount of Notes outstanding necessary to
modify or amend this Indenture or to waive any past Default or Event of Default;

          (b) reduce the rate of or extend the stated time for payment of interest on any Note;

          (c) reduce the principal of or extend the Maturity Date of, any Note;

          (d) make any change that impairs or adversely affects the conversion rights of any Notes;

          (e) reduce the Fundamental Change Repurchase Price of any Note or amend or modify in any
manner adverse to the Noteholders the Company’s obligation to make such payments, whether through
an amendment or waiver of provisions in the covenants, definitions or otherwise;

          (f) make any Note payable in a currency other than that stated in the Note;

          (g) modify the subordination provisions of this Indenture in a manner that adversely affects
the rights of any Noteholder;

          (h) impair the right of any Noteholder to receive payment of principal of and interest on such
Noteholder on or after the due dates therefor or to institute suit for the enforcement of any
payment on or with respect to such Noteholder;

          (i) release any Note Guarantor from any of its obligations under its Note Guarantee and this
Indenture other than in accordance with the terms of this Indenture; or

          (j) make any change in this Article 11 that requires each Noteholder’s consent or in the
waiver provisions in Section 7.01 or Section 7.07,

in each case without the consent of each Noteholder of an outstanding Note affected.

          Upon the written request of the Company, and upon the filing with the Trustee of evidence of
the consent of Noteholders as aforesaid and subject to Section 11.05, the Trustee

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shall join with the Company in the execution of such supplemental indenture unless such
supplemental indenture affects the Trustee’s own rights, duties or immunities under this Indenture
or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter
into such supplemental indenture.

          It shall not be necessary for the consent of the Noteholders under this Section 11.02 to
approve the particular form of any proposed supplemental indenture, but it shall be sufficient if
such consent shall approve the substance thereof. After an amendment under this Indenture becomes
effective, the Company shall mail to the Noteholders a notice briefly describing such amendment.
However, the failure to give such notice to all the Noteholders, or any defect in the notice, will
not impair or affect the validity of the amendment.

          Section 11.03. Effect of Supplemental Indentures. Any supplemental indenture executed
pursuant to the provisions of this Article 11 shall comply with the Trust Indenture Act, as then in
effect; provided that this Section 11.03 shall not require such supplemental indenture to be
qualified under the Trust Indenture Act prior to the time such qualification is in fact required
under the terms of the Trust Indenture Act or this Indenture has been qualified under the Trust
Indenture Act, if ever, nor shall any such qualification constitute any admission or acknowledgment
by any party to such supplemental indenture that any such qualification is required prior to the
time such qualification is in fact required under the terms of the Trust Indenture Act or this
Indenture has been qualified under the Trust Indenture Act. Upon the execution of any supplemental
indenture pursuant to the provisions of this Article 11, this Indenture shall be and be deemed to
be modified and amended in accordance therewith and the respective rights, limitation of rights,
obligations, duties and immunities under this Indenture of the Trustee, the Company and the
Noteholders shall thereafter be determined, exercised and enforced hereunder subject in all
respects to such modifications and amendments and all the terms and conditions of any such
supplemental indenture shall be and be deemed to be part of the terms and conditions of this
Indenture for any and all purposes.

          Section 11.04. Notation on Notes. Notes authenticated and delivered after the execution of
any supplemental indenture pursuant to the provisions of this Article 11 may, at the Company’s
expense, bear a notation in form approved by the Trustee as to any matter provided for in such
supplemental indenture. If the Company or the Trustee shall so determine, new Notes so modified as
to conform, in the opinion of the Trustee and the Board of Directors, to any modification of this
Indenture contained in any such supplemental indenture may, at the Company’s expense, be prepared
and executed by the Company, authenticated by the Trustee (or an authenticating agent duly
appointed by the Trustee pursuant to Section 20.11) and delivered in exchange for the Notes then
outstanding, upon surrender of such Notes then outstanding.

          Section 11.05. Evidence of Compliance of Supplemental Indenture to Be Furnished Trustee. In
addition to the documents required by Section 20.05, the Trustee shall receive an Officers’
Certificate and an Opinion of Counsel as conclusive evidence that any supplemental indenture
executed pursuant hereto complies with the requirements of this Article 11 and is permitted or
authorized by the Indenture.

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ARTICLE 12

CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

     Section 12.01. Company May Consolidate, Etc. on Certain Terms.

     (a) The Company shall not consolidate with, merge with or into, sell, convey, transfer or
lease, or otherwise dispose of its and its Subsidiaries’ properties and assets, taken as a whole,
substantially as an entirety to, or enter into a binding share exchange with another Person,
unless:

     (i) the Company is the surviving entity or if the Company is not the resulting,
surviving or transferee Person (the “Successor Company”), the resulting, surviving or
transferee Person shall be a corporation organized and existing under the laws of the United
States of America, any State thereof or the District of Columbia, and the Successor Company
(if not the Company) shall expressly assume, by supplemental indenture, executed and
delivered to the Trustee, in form satisfactory to the Trustee, all the obligations of the
Company under the Notes and this Indenture;

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

     (iii) the conditions set forth in Section 12.03 have been satisfied.

     Subject to the provisions of Section 12.02 with respect to a lease, upon any such
consolidation, merger, sale, conveyance, transfer, lease or other disposition the Successor Company
(if not the Company) shall succeed to, and may exercise every right and power of, the Company under
this Indenture.

     
For purposes of this Section 12.01, the sale, conveyance, transfer, lease or other disposition
of the properties and assets of one or more Subsidiaries of the Company substantially as an
entirety to another Person, which properties and assets, if held by the Company instead of such
Subsidiaries, would constitute the properties and assets of the Company substantially as an
entirety on a consolidated basis, shall be deemed to be the sale, conveyance, transfer, lease or
other disposition of the properties and assets of the Company substantially as an entirety to
another Person.

     
Section 12.02. Successor Corporation to Be Substituted. In case of any such consolidation,
merger, sale, conveyance, transfer or lease or other disposition and upon the assumption by the
Successor Company, by supplemental indenture, executed and delivered to the Trustee and
satisfactory in form to the Trustee, of the due and punctual payment of the principal of, accrued
and unpaid interest on, all of the Notes, the due and punctual delivery or payment, as the case may
be, of any consideration due upon conversion of the Notes and the due and punctual performance of
all of the covenants and conditions of this Indenture to be performed by the Company, such
Successor Company shall succeed to and be substituted for the Company, with the same effect as if
it had been named herein as the party of the first part. Such Successor Company thereupon may
cause to be signed, and may issue either in its own name or in the name of the Company any or all
of the Notes issuable hereunder which theretofore shall not have been signed by the Company and
delivered to the Trustee; and, upon the order of such Successor

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Company instead of the Company and subject to all the terms, conditions and limitations in
this Indenture prescribed, the Trustee shall authenticate and shall deliver, or cause to be
authenticated and delivered, any Notes that previously shall have been signed and delivered by the
officers of the Company to the Trustee for authentication, and any Notes that such Successor
Company thereafter shall cause to be signed and delivered to the Trustee for that purpose. All the
Notes so issued shall in all respects have the same legal rank and benefit under this Indenture as
the Notes theretofore or thereafter issued in accordance with the terms of this Indenture as though
all of such Notes had been issued at the date of the execution hereof. In the event of any such
consolidation, merger, sale, conveyance or transfer or other disposition (but not in the case of a
lease), the Person named as the “Company” in the first paragraph of this Indenture or any successor
that shall thereafter have become such in the manner prescribed in this Article 12 may be
dissolved, wound up and liquidated at any time thereafter and, except in the case of a lease, such
Person shall be released from its liabilities as obligor and maker of the Notes and from its
obligations under this Indenture.

          In case of any such consolidation, merger, sale, conveyance, transfer or lease or other
disposition, such changes in phraseology and form (but not in substance) may be made in the Notes
thereafter to be issued as may be appropriate.

          Section 12.03. Opinion of Counsel to Be Given Trustee. No merger, sale, consolidation, sale,
conveyance, transfer or lease or other disposition shall be effective unless the Trustee shall
receive an Officers’ Certificate and an Opinion of Counsel as conclusive evidence that any such
consolidation, merger, sale, conveyance, transfer or lease or other disposition and any such
assumption and, if a supplemental indenture is required in connection with such transaction, such
supplemental indenture, complies with the provisions of this Article 12.

ARTICLE 13

IMMUNITY OF INCORPORATORS, STOCKHOLDERS,

OFFICERS AND DIRECTORS

          Section 13.01. Indenture and Notes Solely Corporate Obligations. No recourse for the payment
of the principal of or accrued and unpaid interest on any Note, nor for any claim based thereon or
otherwise in respect thereof, and no recourse under or upon any obligation, covenant or agreement
of the Company in this Indenture or in any supplemental indenture or in any Note, nor because of
the creation of any indebtedness represented thereby, shall be had against any incorporator,
stockholder, employee, agent, officer or director or Subsidiary, as such, past, present or future,
of the Company or of any Successor Company, either directly or through the Company or any Successor
Company, whether by virtue of any constitution, statute or rule of law, or by the enforcement of
any assessment or penalty or otherwise; it being expressly understood that all such liability is
hereby expressly waived and released as a condition of, and as a consideration for, the execution
of this Indenture and the issue of the Notes.

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ARTICLE 14

[INTENTIONALLY OMITTED]

ARTICLE 15

CONVERSION OF NOTES

          Section 15.01. Conversion Privilege. (a) Upon compliance with the provisions of this Article
15, a Noteholder shall have the right, at such Noteholder’s option, to convert all or any portion
(if the portion to be converted is $1,000 principal amount or an integral multiple thereof) of such
Note (i) subject to satisfaction of the conditions described in Section 15.01(b) below, at any time
prior to February 1, 2018 under the circumstances and during the periods set forth in Section
15.01(b) below, and (ii) at any time on or after February 1, 2018 and prior to 5:00 p.m., New York
City time, on the second Scheduled Trading Day immediately preceding the Maturity Date, in each
case, at an initial conversion rate of 97.2668 shares of Common Stock (the “Conversion Rate”),
subject to adjustment as provided in Sections 15.03 and 15.04 of this Indenture, per $1,000
principal amount of Notes (subject to the settlement provisions of Section 15.02 (the “Conversion
Obligation”).

          (b) (i) The Notes may be surrendered for conversion during the five consecutive Business Day
period immediately after any five consecutive Trading Day period (the “Measurement Period”) in
which the Trading Price per $1,000 principal amount of Notes for each Trading Day of such
Measurement Period was less than 98% of the product of the then-applicable Conversion Rate on such
Trading Day and the Last Reported Sale Price of the Common Stock on such Trading Day. The Trading
Prices shall be determined by the Bid Solicitation Agent pursuant to this clause and the definition
of Trading Price set forth in this Indenture. The Company shall provide written notice to the Bid
Solicitation Agent of the three independent U.S. nationally recognized securities dealers selected
by the Company pursuant to the definition of Trading Price, along with appropriate contact
information for each. The Bid Solicitation Agent shall have no obligation to determine
the Trading Price of the Notes unless requested by the Company, and the Company shall have no
obligation to make such request unless a Noteholder provides the Company with reasonable evidence
that the Trading Price per $1,000 principal amount of the Notes would be less than 98% of the
product of the then-applicable Conversion Rate and the Last Reported Sale Price of the Common Stock
at such time, at which time the Company shall instruct the Bid Solicitation Agent to determine the
Trading Price of the Notes beginning on the next Trading Day and on each successive Trading Day
until the Trading Price per $1,000 principal amount of Notes is greater than or equal to 98% of the
product of the then-applicable Conversion Rate and the Last Reported Sale Price of the Common Stock
on such Trading Day. If the Company does not, when obligated, instruct the Bid Solicitation Agent
to determine the Trading Price of the Notes as provided in the preceding sentence, or if the
Company gives such instruction to the Bid Solicitation Agent and the Bid Solicitation Agent fails
to make such determination, then the Trading Price per $1,000 principal amount of Notes will be
deemed to be less than 98% of the product of the Last Reported Sale Price of the Common Stock and
the then-applicable Conversion Rate on such Trading Day. If, at any time after the Trading Price
condition set forth above has been met, the Trading Price per $1,000 principal amount of Notes is
greater than or equal to 98% of the product of the then-applicable Conversion Rate and the Last
Reported Sale Price of the Common Stock on such

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Trading Day, the Company shall so notify the Trustee, the Conversion Agent and the
Noteholders.

     (ii) In the event that the Company elects to:

          (A) distribute to all or substantially all holders of its Common Stock rights,
options or warrants entitling them, for a period of not more than 60 calendar days
from the declaration date of such distribution, to subscribe for or purchase its
Common Stock, at a price per share less than the Last Reported Sale Price of the
Common Stock on the Trading Day immediately preceding the declaration date for such
distribution; or

          (B) distribute to all or substantially all holders of its Common Stock the
Company’s assets, debt securities, or rights to purchase securities of the Company,
which distribution has a per share value (as determined by the Board of Directors)
exceeding 10% of the Last Reported Sale Price of the Common Stock on the Trading Day
immediately preceding the date of declaration for such distribution,

then, in each case, the Company shall notify all Noteholders, the Trustee and the Conversion Agent
at least 45 Scheduled Trading Days prior to the Ex-Dividend Date for such distribution. Once the
Company has given such notice, the Notes may be surrendered for conversion at any time until the
earlier of (1) 5:00 p.m., New York City time, on the Scheduled Trading Day immediately prior to
such Ex-Dividend Date and (2) the Company’s announcement that such distribution will not take
place. No Noteholder may exercise this right to convert if, as a result of holding the Notes, such
Noteholder will otherwise participate in the distribution, without having to convert its Notes, at
the same time and on the same terms as holders of the Common Stock as if such Noteholder held a
number of shares of the Common Stock equal to the applicable Conversion Rate for each $1,000
principal amount of notes held by such Noteholder (calculated on an aggregate basis per
Noteholder).

     (iii) If:

          (A) a Fundamental Change or Make-Whole Fundamental Change occurs; or

          (B) the Company is a party to a consolidation, merger or binding share exchange
or a sale, conveyance, transfer, lease or other disposition of all or substantially
all of the property and assets of the Company and its Subsidiaries taken as a whole,
in each case pursuant to which the Common Stock would be converted into cash,
securities and/or other property and which transaction does not constitute a
Fundamental Change;

a Noteholder may convert all or a portion of its notes at any time from and after the 35th Business
Day prior to the anticipated effective date of such transaction or event (or, if later, the
Business Day after the Company gives notice of such transaction or event, and to convert at the
increased Conversion Rate (if any) in connection with such Make-Whole Fundamental Change, from, and
including, the Effective Date of such Make-Whole Fundamental Change) to 5:00 p.m.,

59

 

New York City time, on the 35th Business Day immediately following the actual effective date of
such transaction or event (or if such transaction or event also constitutes a Fundamental Change,
until the Business Day immediately preceding the Fundamental Change Repurchase Date corresponding
to such Fundamental Change). The Company shall notify the Noteholders, the Trustee and the
Conversion Agent:

     (x) as promptly as practicable following the date the Company publicly announces such
transaction but in no event, except as provided in clause (y) below, less than 35 Business
Days prior to the anticipated effective date of such transaction; or

     (y) if the Company does not have knowledge of such transaction or event or has not
entered into a definitive agreement with respect to such transaction to which the Company is
a party at least 35 Business Days prior to the anticipated effective date of such
transaction, within three Business Days of the date upon which the Company receives notice,
or otherwise becomes aware, of such transaction or event or enters into a definitive
agreement with respect to such transaction, but in no event later than the actual effective
date of such transaction or event.

     
          (iv) The Notes may be surrendered for conversion in any Fiscal Quarter after the Fiscal
Quarter ending June 30, 2011 and only during any such Fiscal Quarter, if the Last Reported
Sale Price of the Common Stock for at least 20 Trading Days in a period of 30 consecutive
Trading Days ending on the last Trading Day of the immediately preceding Fiscal Quarter is
equal to or more than 130% of the then-applicable Conversion Price on each applicable
Trading Day (such price, the “Conversion Trigger Price”).

     Section 15.02. Conversion Procedure.

     (a) [Reserved].

     (b) Subject to this Section 15.02, upon any conversion of any Note, the Company shall deliver
to converting Noteholders, in respect of each $1,000 principal amount of Notes being converted,
solely cash, solely shares of Common Stock or a combination of cash and Common Stock (each a
“Settlement Amount”), at its election, as set forth in this Section 15.02.

     
          (i) All conversions on and after February 1, 2018 will be settled using the same
Settlement Method.

     
          (ii) Prior to February 1, 2018, the Company will elect (or be deemed to have elected)
the same Settlement Method for all conversions occurring on any given Conversion Date.
Except for any conversions that occur on or after February 1, 2018, the Company need not
elect the same Settlement Method with respect to conversions that occur on different
Conversion Dates.

     
          (iii) If, in respect of any Conversion Date (or the period beginning on, but including,
February 1, 2018 and ending on, and including, the second Scheduled Trading Day immediately
preceding the Maturity Date, as the case may be), the

60

 

Company elects to deliver a notice (the “Settlement Notice”) of the relevant Settlement
Method in respect of such Conversion Date (or such period, as the case may be), the Company,
through the Trustee, shall deliver such Settlement Notice to converting Noteholders no later
than the second Trading Day immediately following the relevant Conversion Date. Such
Settlement Notice shall specify whether the Company shall satisfy its Conversion Obligation
by (A) delivering solely shares of Common Stock, (B) paying solely cash or (C) paying and
delivering, as the case may be, a combination of cash and shares of Common Stock. In the
case of an election to pay and deliver, as the case may be, a combination of cash and shares
of Common Stock, the relevant Settlement Notice shall indicate the Specified Dollar Amount.
If, with respect to any Conversion Date, the Company delivers a Settlement Notice electing
to pay and deliver, as the case may be, a combination of cash and shares of Common Stock in
respect of its Conversion Obligation but does not indicate a Specified Dollar Amount in such
Settlement Notice, the Specified Dollar Amount shall be deemed to be equal to $1,000.

     With respect to any Conversion Date on or prior to February 1, 2018, if the Company
does not deliver a Settlement Notice, the Company will be deemed to have elected to deliver
shares of Common Stock in respect of its Conversion Obligation.

     With respect to any Conversion Date on and after February 1, 2018, if the Company does
not deliver a Settlement Notice, the Company will be deemed to have elected to deliver a
combination of cash and shares of Common Stock in respect of its Conversion Obligation, and
the Specified Dollar Amount shall be deemed to be equal to $1,000.

          (iv) The Settlement Amount in respect of any conversion of Notes shall be computed as
follows:

          (A) if the Company elects to satisfy its Conversion Obligation in respect of
such conversion by delivering solely Common Stock, the Company will deliver to the
converting Noteholder a number of shares of Common Stock equal to (1) the aggregate
principal amount of Notes to be converted, divided by $1,000, multiplied by (2) the
then-applicable Conversion Rate;

          (B) if the Company elects to satisfy its Conversion Obligation in respect of
such conversion by paying solely cash, the Company shall pay to the converting
Noteholder cash in an amount per $1,000 principal amount of Notes being converted
equal to the sum of the Daily Conversion Values for each of the 40 consecutive VWAP
Trading Days during the related Cash Settlement Averaging Period; and

          (C) if the Company elects to satisfy its Conversion Obligation in respect of
such conversion by paying and delivering, as the case may be, a combination of cash
and shares of Common Stock, if any, the Company shall pay and deliver, as the case
may be, in respect of each $1,000 principal amount of Notes being converted, a
Settlement Amount equal to the sum of the Daily

61

 

Settlement Amounts for each of the 40 consecutive VWAP Trading Days during the
related Cash Settlement Averaging Period.

          (v) The Company will also deliver to each converting Noteholder cash in lieu of
fractional shares of Common Stock as set forth pursuant to Section 15.02(l).

          (vi) The Daily Settlement Amounts (if applicable) and the Daily Conversion Values (if
applicable) shall be determined by the Company promptly following the last day of the Cash
Settlement Averaging Period. Promptly after such determination of the Daily Settlement
Amounts or the Daily Conversion Values, as the case may be, and the amount of cash
deliverable in lieu of fractional shares (if any), the Company shall notify the Trustee and
the Conversion Agent of the Daily Settlement Amounts or the Daily Conversion Values, as the
case may be, and the amount of cash deliverable in lieu of fractional shares of Common
Stock. The Trustee and the Conversion Agents shall have no responsibility for any such
determination.

          (c) [Reserved].

          (d) Before any holder of a beneficial interest in a Global Note shall be entitled to convert
the same as set forth above, such holder shall comply with the procedures of the Depositary in
effect at that time and, if required, pay funds equal to interest payable on the next Interest
Payment Date to which such holder is not entitled as set forth in Section 15.02(j) and, if
required, all transfer or similar taxes, if any, as set forth in Section 15.02(g).

          Before a Noteholder of a Note issued in certificated form shall be entitled to convert the
same as set forth above, such Noteholder shall:

     (1) complete and manually sign and deliver an irrevocable notice to the Conversion
Agent in the form on the reverse of such certificated Note (or a facsimile thereof) (Exhibit
B hereto) (a “Notice of Conversion”) at the office of the Conversion Agent and shall state
in writing therein the principal amount of Notes to be converted and the name or names (with
addresses) in which such Noteholder wishes the certificate or certificates for any shares of
Common Stock, if any, to be delivered upon settlement of the Conversion Obligation to be
registered;

     (2) surrender such Notes, duly endorsed to the Company or in blank (and accompanied by
appropriate endorsement and transfer documents), at the office of the Conversion Agent;

     (3) if required, furnish appropriate endorsements and transfer documents;

     (4) if required, pay all transfer or similar taxes, if any as set forth in Section
15.02(g); and

     (5) if required, pay funds equal to interest payable on the next Interest Payment Date
to which such holder is not entitled as set forth in Section 15.02(j).

62

 

          The Trustee (and if different, the relevant Conversion Agent) shall notify the Company of any
conversion pursuant to this Article 15 on the date of such conversion. No Notice of Conversion
with respect to any Notes may be surrendered by a holder thereof if such holder has also delivered
a Fundamental Change Repurchase Notice to the Company in respect of such Notes and not validly
withdrawn such Fundamental Change Repurchase Notice in accordance with Section 19.03.

          If more than one Note shall be surrendered for conversion at one time by the same holder, the
Conversion Obligation with respect to such Notes, if any, that shall be payable upon conversion
shall be computed on the basis of the aggregate principal amount of the Notes (or specified
portions thereof to the extent permitted thereby) so surrendered.

          (e) Each conversion shall be deemed to have been effected immediately prior to 5:00 p.m., New
York City time, on the date (the “Conversion Date”) that the Noteholders has complied with the
requirements set forth in Section 15.02(d).

          If the Company elects to satisfy the related Conversion Obligation solely in shares of Common
Stock, the Company shall deliver the shares of Common Stock due in respect of it Conversion
Obligation on the third Trading Day immediately following the relevant Conversion Date; provided
that if calculating the adjustment to the Conversion Rate in accordance with the anti-dilution
adjustments set forth in Section 15.04 cannot be accomplished prior to such third Trading Day
following the relevant Conversion Date, the Company shall deliver the amount of additional shares
of its Common Stock resulting from that adjustment on the third Trading Day after the earliest
Trading Day on which such calculation can be made.

          In the case of any other Settlement Method, the Company shall pay and deliver, as the case may
be, the cash and/or shares of Common Stock by the third Business Day immediately following the last
VWAP Trading Day of the Cash Settlement Averaging Period.

          If any shares of Common Stock are due to converting Noteholders, the Company shall issue or
cause to be issued, and deliver to the Conversion Agent or to such Noteholder, or such Noteholder’s
nominee or nominees, certificates or a book-entry transfer through the Depositary for the number of
full shares of Common Stock to which such Noteholder shall be entitled in satisfaction of such
Conversion Obligation.

          (f) In case any Note in certificated form shall be surrendered for partial conversion, the
Company shall execute and the Trustee shall authenticate and deliver to or upon the written order
of the holder of the Note so surrendered, without charge to such holder, a new Note or Notes in
authorized denominations in an aggregate principal amount equal to the unconverted portion of the
surrendered Note.

          Upon the conversion of an interest in a Global Note, the Trustee, or the Custodian at the
direction of the Trustee, shall make a notation in their books and records as to the reduction in
the principal amount represented thereby. The Company shall notify the Trustee in writing of any
conversion of Notes effected through any Conversion Agent other than the Trustee.

63

 

          (g) If a holder submits a Note for conversion, the Company shall pay all documentary, stamp
and other similar issue or transfer tax or other duties, if any, due on the issue of any shares of
Common Stock upon conversion, unless such tax is due because the holder requests any shares of
Common Stock to be issued in a name other than the holder’s name, in which case the holder will pay
that tax. The Conversion Agent may refuse to deliver the certificates representing the shares of
Common Stock being issued in a name other than the holder’s name until the Trustee receives a sum
sufficient to pay any tax that 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
regulations.

          (h) Except as provided in Section 15.04, no adjustment shall be made for dividends on any
shares issued upon the conversion of any Note as provided in this Article.

          (i) [Reserved].

          (j) Upon conversion, a Noteholder shall not receive any separate cash payment for accrued and
unpaid interest, if any, except as set forth below. The Company’s settlement of its Conversion
Obligations as described above shall be deemed to satisfy its obligation to pay the principal
amount of the Note and accrued and unpaid interest, if any to, but not including, the Conversion
Date. As a result, accrued and unpaid interest, if any to, but not including, the Conversion Date
shall be deemed to be paid in full rather than cancelled, extinguished or forfeited.

          Notwithstanding the final sentence of the preceding paragraph, if Notes are converted after
5:00 p.m., New York City time, on an Interest Record Date but prior to 9:00 a.m., New York City
time, on the immediately following Interest Payment Date, Noteholders of such Notes as of 5:00
p.m., New York City time, on the Interest Record Date will receive the interest payable on such
Notes on the corresponding Interest Payment Date notwithstanding the conversion. Notes surrendered
for conversion during the period from 5:00 p.m., New York City time, on any Interest Record Date to
9:00 a.m., New York City time, on the corresponding Interest Payment Date must be accompanied by
payment of an amount equal to the interest, if any payable on the Notes so converted (whether or
not the Noteholder of such Notes was the holder of record); provided, however, that no such payment
shall be required:

     (1) if the Company has specified a Fundamental Change Repurchase Date that is after a
Interest Record Date but on or prior to the corresponding Interest Payment Date;

     (2) to the extent of any overdue interest, if any, existing at the time of conversion
with respect to such Note; or

     (3) if the Notes are surrendered for conversion after 5:00 p.m., New York City time, on
the Interest Record Date immediately preceding the Maturity Date. Except as described
above, no payment or adjustment will be made for accrued and unpaid interest on converted
Notes.

          (k) The Person in whose name the certificate for any shares of Common Stock delivered upon
conversion is registered shall be treated as a stockholder of record as of 5:00 p.m., New York City
time, on the relevant Conversion Date (if the Company elects to satisfy the

64

 

related Conversion Obligation solely in shares of Common Stock) or the last Trading Day of the
related Cash Settlement Averaging Period (in the case of any other Settlement Method), as the case
may be; provided, however, if such Conversion Date or such last Trading Day of the Cash Settlement
Averaging Period occurs on any date when the stock transfer books of the Company shall be closed,
such occurrence shall not be effective to constitute the Person or Persons entitled to receive any
such shares of Common Stock due upon conversion as the record holder or holders of such shares of
Common Stock on such date, but such occurrence 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 5:00 p.m., New York City time, on the next succeeding day on which such stock
transfer books are open. Upon conversion of Notes, such Person shall no longer be a Noteholder.

          (l) For each Note surrendered for conversion, if the Company has elected to deliver a
combination of cash and shares of Common Stock in respect of its Conversion Obligation, the number
of full shares that shall be issued upon conversion thereof shall be computed on the basis of the
aggregate Daily Settlement Amounts for the applicable Cash Settlement Averaging Period and any
fractional shares remaining after such computation shall be paid in cash. The Company shall not
issue fractional shares of Common Stock upon conversion of Notes. Instead, the Company shall pay
cash in lieu of fractional shares based on the VWAP on the relevant Conversion Date (if the Company
elects to satisfy its Conversion Obligation solely in shares of Common Stock) or based on the VWAP
on the last VWAP Trading Day of the relevant Cash Settlement Averaging Period (in the case of any
other Settlement Method). If more than one Note shall be surrendered for conversion at one time by
the same holder, the number of full shares that shall be issued upon conversion thereof shall be
computed on the basis of the aggregate principal amount of the Notes (or specified portions
thereof) so surrendered.

          Section 15.03. Increased Conversion Rate Applicable to Certain Notes Surrendered in Connection with
Make-Whole Fundamental Changes. (a) Notwithstanding anything herein to the contrary, the
Conversion Rate applicable to each Note that is surrendered for conversion, in accordance with this
Article 15, at any time from, and including, the Effective Date of a Make-Whole Fundamental Change
to 5:00 p.m., New York City time, on the Business Day immediately prior to the related Fundamental
Change Repurchase Date corresponding to such Make-Whole Fundamental Change (or, in the case of a
Make-Whole Fundamental Change that would have been a Fundamental Change but for the proviso in
clause (b) of the definition thereof, the 35th Business Day immediately following the Effective
Date of such Make-Whole Fundamental Change), shall be increased by an amount equal to the
Conversion Rate that would, but for this Section 15.03, otherwise apply to such Note pursuant to
this Article 15, plus an amount equal to the Make-Whole Conversion Rate Adjustment.

          As used herein, “Make-Whole Conversion Rate Adjustment” shall mean, with respect to a
Make-Whole Fundamental Change, the amount set forth in the following table that corresponds to the
Effective Date of such Make-Whole Fundamental Change and the Stock Price paid or deemed to be paid
per share of Common Stock for such Make-Whole Fundamental Change, all as determined by the Company:

Make-Whole Conversion Rate Adjustment

(per $1,000 principal amount of Notes)

65

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock Price
	Effective Date	 	$8.94	 	$9.50	 	$10.00	 	$10.50	 	$11.00	 	$11.50	 	$12.00	 	$12.50	 	$13.00	 	$14.00	 	$15.00	 	$16.00	 	$17.00
	May 10, 2011
	 	 	14.5900	 	 	 	11.3879	 	 	 	8.8381	 	 	 	6.7654	 	 	 	5.0847	 	 	 	3.7457	 	 	 	2.6855	 	 	 	1.8619	 	 	 	1.2385	 	 	 	0.4641	 	 	 	0.1222	 	 	 	0.0115	 	 	 	0.0000	 
	May 1, 2012
	 	 	14.5900	 	 	 	12.9517	 	 	 	10.1926	 	 	 	7.9314	 	 	 	6.0799	 	 	 	4.5830	 	 	 	3.3835	 	 	 	2.4318	 	 	 	1.6895	 	 	 	0.7161	 	 	 	0.2340	 	 	 	0.0461	 	 	 	0.0003	 
	May 1, 2013
	 	 	14.5900	 	 	 	14.3110	 	 	 	11.3659	 	 	 	8.9386	 	 	 	6.9447	 	 	 	5.3149	 	 	 	3.9978	 	 	 	2.9391	 	 	 	2.1014	 	 	 	0.9623	 	 	 	0.3577	 	 	 	0.0928	 	 	 	0.0075	 
	May 1, 2014
	 	 	14.5900	 	 	 	14.5900	 	 	 	12.4423	 	 	 	9.8433	 	 	 	7.7011	 	 	 	5.9459	 	 	 	4.5179	 	 	 	3.3648	 	 	 	2.4444	 	 	 	1.1701	 	 	 	0.4669	 	 	 	0.1378	 	 	 	0.0194	 
	May 1, 2015
	 	 	14.5900	 	 	 	14.5900	 	 	 	12.8930	 	 	 	10.1722	 	 	 	7.9364	 	 	 	6.1087	 	 	 	4.6255	 	 	 	3.4319	 	 	 	2.4837	 	 	 	1.1787	 	 	 	0.4656	 	 	 	0.1359	 	 	 	0.0188	 
	May 1, 2016
	 	 	14.5900	 	 	 	14.5900	 	 	 	12.2246	 	 	 	9.4548	 	 	 	7.2086	 	 	 	5.4022	 	 	 	3.9642	 	 	 	2.8349	 	 	 	1.9642	 	 	 	0.8331	 	 	 	0.2787	 	 	 	0.0589	 	 	 	0.0017	 
	May 1, 2017
	 	 	14.5900	 	 	 	13.4023	 	 	 	9.9255	 	 	 	7.1782	 	 	 	5.0479	 	 	 	3.4327	 	 	 	2.2419	 	 	 	1.3947	 	 	 	0.8178	 	 	 	0.2195	 	 	 	0.0293	 	 	 	0.0000	 	 	 	0.0000	 
	May 1, 2018
	 	 	14.5900	 	 	 	7.9964	 	 	 	2.7332	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 

provided, however, that:

          (i) if the exact Stock Price of such Make-Whole Fundamental Change is between two Stock
Prices listed in the table above under the column titled “Stock Price,” or if the actual
Effective Date of such Make-Whole Fundamental Change is between two Effective Dates listed
in the table above in the row immediately below the title “Effective Date,” then the
Make-Whole Conversion Rate Adjustment for such Make-Whole Fundamental Change shall be
determined by the Company by straight-line interpolation between the Make-Whole Conversion
Rate Adjustment set forth for such higher and lower Stock Prices, or for such earlier and
later Effective Dates based on a 365-day year, as applicable;

          (ii) if the exact Stock Price of such Make-Whole Fundamental Change is greater than
$17.00 per share (subject to adjustment in the same manner as the Stock Price as provided in
Section 15.03(a)(iii)), or if the exact Stock Price of such Make-Whole Fundamental Change is
less than $8.94 per share (subject to adjustment in the same manner as the Stock Price as
provided in Section 15.03(a)(iii)), then the Make-Whole Conversion Rate Adjustment shall be
equal to zero and this Section 15.03 shall not require the Company to increase the
Conversion Rate with respect to such Make-Whole Fundamental Change;

          (iii) if an event occurs that requires, pursuant to this Article 15 (other than solely
pursuant to this Section 15.03), an adjustment to the Conversion Rate, then, on the date and
at the time such adjustment is so required to be made, each price set forth in the table
above under the column titled “Stock Price” shall be deemed to be adjusted so that such
Stock Price, at and after such time, shall be equal to the product of (1) such Stock Price
as in effect immediately before such adjustment to such Stock Price and (2) a fraction whose
numerator is the Conversion Rate in effect immediately before such adjustment to the
Conversion Rate and whose denominator is the Conversion Rate to be in effect, in accordance
with this Article 15, immediately after such adjustment to the Conversion Rate;

          (iv) [Reserved];

          (v) each Make-Whole Conversion Rate Adjustment set forth in the table above shall be
adjusted in the same manner in which, and for the same events for which, the Conversion Rate
is to be adjusted pursuant to Section 15.04; and

66

 

          (vi) in no event will the total number of shares of Common Stock issuable upon
conversion of the Notes exceed 111.8568 per $1,000 principal amount of Notes, subject to
adjustment in the same manner as the applicable Conversion Rate pursuant to Section 15.04.

          (b) At least 35 Business Days prior to the anticipated Effective Date of a Make-Whole
Fundamental Change (or, if the Company does not have knowledge of such Make-Whole Fundamental
Change or its anticipated Effective Date or has not entered into a definitive agreement with
respect to such transaction to which the Company is a party at least 35 Business Days prior to the
anticipated Effective Date of such Make-Whole Fundamental Change, within three Business Days of the
date upon which the Company receives notice, or otherwise becomes aware, of such Make-Whole
Fundamental Change or its Effective Date or enters into a definitive agreement with respect to such
Make-Whole Fundamental Change, but in no event later than the actual Effective Date of such
transaction or event), the Company shall mail to each Noteholder, the Trustee and the Conversion
Agent written notice of the anticipated Effective Date of such proposed Make-Whole Fundamental
Change. Each such notice shall also state that in connection with such Make-Whole Fundamental
Change, the Company shall increase, in accordance herewith, the Conversion Rate applicable to Notes
entitled as provided herein to such increase (along with a description of how such increase shall
be calculated and the time periods during which Notes must be surrendered in order to be entitled
to such increase).

          Nothing in this Section 15.03 shall prevent an adjustment to the Conversion Rate pursuant to
Section 15.04 in respect of a Make-Whole Fundamental Change.

          Section 15.04. Adjustment of Conversion Rate. The Conversion Rate shall be adjusted from time
to time by the Company as follows:

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

     where

	 	 	 	 	 

	CR0

	 	=
	 	the Conversion Rate in effect immediately prior to 9:00 a.m., New York City
time, on the Ex-Dividend Date for such dividend or distribution, or 9:00 a.m., New York
City time, on the effective date of such share split or share combination, as the case
may be;
	 
	 	 	 	 
	CR’

	 	=
	 	the Conversion Rate in effect immediately after 9:00 a.m., New York City
time, on the Ex-Dividend Date for such dividend or distribution, or 9:00 a.m., New York
City time, on the effective date of such share split or share combination, as the case
may be;

67

 

	 	 	 	 	 

	OS0

	 	=
	 	the number of shares of Common Stock outstanding immediately prior to 9:00
a.m., New York City time, on the Ex-Dividend Date for such dividend or distribution, or
9:00 a.m., New York City time, on the effective date of such share split or share
combination, as the case may be; and
	 
	 	 	 	 
	OS’

	 	=
	 	the number of shares of Common Stock outstanding immediately after, and
solely as a result of, such dividend or distribution, or such share split or share
combination, as the case may be.

Such adjustment shall become effective immediately after 9:00 a.m., New York City time, on the
Ex-Dividend Date for such dividend or distribution or the effective date for such share split or
share combination, as the case may be. If any dividend or distribution of the type described in
this Section 15.04(a) is declared but not so paid or made, or the outstanding shares of Common
Stock are not split or combined, as the case may be, the Conversion Rate shall be immediately
readjusted, effective as of the date the Board of Directors determines not to pay such dividend or
distribution, or split or combine the outstanding shares of Common Stock, as the case may be, to
the Conversion Rate that would then be in effect if such dividend, distribution, share split or
share combination had not been declared or announced.

          (b) In case the Company shall distribute to all or substantially all holders of its Common
Stock any rights, options or warrants entitling them for a period of not more than 60 calendar days
after the declaration date of such distribution to subscribe for or purchase shares of the Common
Stock, at a price per share less than the Last Reported Sale Price of the Common Stock on the
Trading Day immediately preceding the declaration date for such distribution, the Conversion Rate
shall be adjusted based on the following formula:

     where

	 	 	 	 	 

	CR0

	 	=
	 	the Conversion Rate in effect immediately prior to 9:00 a.m., New York City
time, on the Ex-Dividend Date for such distribution;
	 
	 	 	 	 
	CR’

	 	=
	 	the Conversion Rate in effect immediately after 9:00 a.m., New York City
time, on the Ex-Dividend Date for such distribution;
	 
	 	 	 	 
	OS0

	 	=
	 	the number of shares of the Common Stock that are outstanding immediately
prior to 9:00 a.m., New York City time, on the Ex-Dividend Date for such distribution;
	 
	 	 	 	 
	X

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

	 	=
	 	the number of shares of the Common Stock equal to the aggregate price payable
to exercise such rights, options or warrants, divided by the

68

 

	 	 

	 

	average of the Last Reported Sale Prices of Common Stock over the ten
consecutive Trading Day period ending on, and including, the Trading Day
immediately preceding the Ex-Dividend Date relating to such distribution of
such rights, options or warrants.

Such adjustment shall be successively made whenever any such rights, options or warrants are
distributed and shall become effective immediately after 9:00 a.m., New York City time, on the
Ex-Dividend Date for such distribution. If any right, option or warrant described in this Section
15.04(b) is not issued or, if so issued, is not exercised prior to the expiration of the
exercisability thereof or shares of the Common Stock are not delivered upon exercise of such
rights, options or warrants, the new Conversion Rate shall be readjusted to the Conversion Rate
that would then be in effect if such rights, options or warrants had not been so issued or would
then be in effect had the increase with respect to the issuance of such rights, options or warrants
been made on the basis of delivery of only the number of shares of the Common Stock actually
delivered.

          In determining whether any rights, options or warrants entitle the holders of the Common Stock
to subscribe for or purchase shares of the Common Stock at less than the Last Reported Sale Price
of the Common Stock on the Trading Day immediately preceding the declaration date for such
distribution, and in determining the aggregate price payable for such shares of the Common Stock,
there shall be taken into account any consideration received by the Company for such rights,
options or warrants and any amount payable on exercise or conversion thereof, the value of such
consideration, if other than cash, to be determined by the Board of Directors.

          In no event shall the Conversion Rate be decreased pursuant to this Section 15.04(b) (subject
to the readjustment provision set forth in this Section 15.04(b)).

          (c) In case the Company shall distribute shares of its Capital Stock, evidences of its
indebtedness or other of its assets or property other than:

     (i) dividends or distributions covered by Section 15.04(a) and Section
15.04(b);

     (ii) dividends or distributions paid exclusively in cash covered by Section
15.04(d); and

     (iii) Spin-Offs to which the provisions set forth below in this Section
15.04(c) shall apply

(any of such shares of Capital Stock, indebtedness, or other asset or property
hereinafter in this Section 15.04(c) called the “Distributed Property”), to all or
substantially all holders of its Common Stock, then, in each such case the
Conversion Rate shall be adjusted based on the following formula:

69

 

     where

	 	 	 	 	 

	CR0

	 	=
	 	the Conversion Rate in effect immediately prior to 9:00 a.m., New York City
time, on the Ex-Dividend Date for such distribution;
	 
	 	 	 	 
	CR’

	 	=
	 	the Conversion Rate in effect immediately after 9:00 a.m., New York City
time, on the Ex-Dividend Date for such distribution;
	 
	 	 	 	 
	SP0

	 	=
	 	the average of the Last Reported Sale Prices of the Common Stock over the
ten consecutive Trading Day period ending on, and including, the Trading Day
immediately preceding the Ex-Dividend Date for such distribution; and
	 
	 	 	 	 
	FMV

	 	=
	 	the fair market value (as determined by the Board of Directors) of the
Distributed Property with respect to each outstanding share of the Common Stock on the
Ex-Dividend Date for such distribution.

provided that if “FMV” as set forth above is equal to or greater than “SP0” as set forth
above, in lieu of the foregoing adjustment, each Noteholder shall receive, in respect of each
$1,000 principal amount of Notes thereof, at the same time and upon the same terms as holders of
Common Stock, the amount and kind of Distributed Property such Noteholder would have received had
such Noteholder owned a number of shares of Common Stock equal to the Conversion Rate on the
Ex-Dividend Date for such distribution.

          If the Board of Directors determines “FMV” for purposes of this Section 15.04(c) by reference
to the actual or when issued trading market for any securities, it must in doing so consider the
prices in such market over the same period used in computing the Last Reported Sale Prices of the
Common Stock over the ten consecutive Trading Day period ending on, and including, the Trading Day
immediately preceding the Ex-Dividend Date for such distribution.

          Such adjustment shall become effective immediately after to 9:00 a.m., New York City time, on
the Ex-Dividend Date for such distribution.

          With respect to an adjustment pursuant to this Section 15.04(c) where there has been a
dividend or other distribution on the Common Stock of shares of Capital Stock of any class or
series, or similar equity interest, of or relating to a Subsidiary or other business unit of the
Company and such Capital Stock or similar equity interest is or when issued will be listed on a
national or regional securities exchange (a “Spin-Off”), the Conversion Rate will be increased
based on the following formula:

     where

	 	 	 	 	 

	CR0

	 	=
	 	the Conversion Rate in effect immediately prior to 5:00 p.m., New York City
time, on the tenth Trading Day immediately following, and including,

70

 

	 	 	 	 	 

	 

	 	 	 	the effective date of the Spin-Off;
	 
	 	 	 	 
	CR’

	 	=
	 	the Conversion Rate in effect immediately after 5:00 p.m., New York City
time, on the effective date of the Spin-Off;
	 
	 	 	 	 
	FMV0

	 	=
	 	the average of the Last Reported 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 ten consecutive Trading Day period immediately
following, and including, the effective date of the Spin-Off; and
	 
	 	 	 	 
	MP0

	 	=
	 	the average of the Last Reported Sale Prices of the Common Stock over the
first ten consecutive Trading Day period immediately following, and including, the
effective date of the Spin-Off.

          The adjustment to the Conversion Rate under the preceding paragraph will be given effect at
5:00 p.m., New York City time, on the effective date of the Spin-Off. If the effective date of the
Spin-Off is less than 12 Trading Days prior to the settlement date in respect of any conversion,
references within this and the preceding paragraph of this Section 15.04(c) to ten Trading Days
shall be deemed replaced, for purposes of calculating the affected Daily Conversion Values in
respect of that conversion, with such lesser number of Trading Days as elapse between the effective
date of such Spin-Off and the Trading Day immediately preceding such settlement date.

          If any such dividend or distribution described in this Section 15.04(c) 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.

          Subject in all respect to Section 15.10, rights, options or warrants distributed by the
Company to all holders of its Common Stock entitling the holders thereof to subscribe for or
purchase shares of the Company’s Capital Stock, including Common Stock (either initially or under
certain circumstances), which rights, options or warrants, until the occurrence of a specified
event or events (“Trigger Event”):

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

               (ii) are not exercisable; and

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

          shall be deemed not to have been distributed for purposes of this Section 15.04 (and no
adjustment to the Conversion Rate under this Section 15.04 will be required) until the occurrence
of the earliest Trigger Event, whereupon such rights and warrants shall be deemed to have been
distributed and an appropriate adjustment (if any is required) to the Conversion Rate shall be made
under this Section 15.04(c). If any such right, option or warrant, including any such existing
rights, options or warrants distributed prior to the date of this Indenture, are subject to events,
upon the occurrence of which such rights, options or warrants become exercisable to purchase
different securities, evidences of indebtedness or other assets, then the date of the

71

 

occurrence of any and each such event shall be deemed to be the date of distribution and
Ex-Dividend Date with respect to new rights, options or warrants with such rights (and a
termination or expiration of the existing rights, options or warrants without exercise by any of
the holders thereof). In addition, in the event of any distribution (or deemed distribution) of
rights, options or warrants, or any Trigger Event or other event (of the type described in the
preceding sentence) with respect thereto that was counted for purposes of calculating a
distribution amount for which an adjustment to the Conversion Rate under this Section 15.04 was
made:

          (1) in the case of any such rights, options or warrants that shall all have been redeemed or
repurchased without exercise by any holders thereof, the Conversion Rate shall be readjusted upon
such final redemption or repurchase to give effect to such distribution or Trigger Event, as the
case may be, as though it were a cash distribution, equal to the per share redemption or repurchase
price received by a holder or holders of Common Stock with respect to such rights, options or
warrants (assuming such holder had retained such rights or warrants), made to all holders of Common
Stock as of the date of such redemption or repurchase; and

          (2) in the case of such rights, options or warrants that shall have expired or been terminated
without exercise by any holders thereof, the Conversion Rate shall be readjusted as if such rights,
options and warrants had not been issued.

          For purposes of this Section 15.04(c), Section 15.04(a), and Section 15.04(b), any dividend or
distribution to which this Section 15.04(c) is applicable that also includes shares of Common
Stock, or rights, options or warrants to subscribe for or purchase shares of Common Stock to which
Section 15.04(a) or Section 15.04(b) (or both) applies, shall be deemed instead to be

          (1) a dividend or distribution of the evidences of indebtedness, assets or shares of capital
stock other than such shares of Common Stock or rights, options or warrants to which Section
15.04(c) applies (and any Conversion Rate adjustment required by this Section 15.04(c) with respect
to such dividend or distribution shall then be made) immediately followed by

          (2) a dividend or distribution of such shares of Common Stock or such rights, options or
warrants (and any further Conversion Rate adjustment required by Section 15.04(a) and Section
15.04(b) with respect to such dividend or distribution shall then be made), except:

          (A) the Ex-Dividend Date of such dividend or distribution shall be substituted as “the
Ex-Dividend Date,” “the Ex-Dividend Date relating to such distribution of such rights,
options or warrants,” the “Record Date for such dividend or distribution” within the meaning
of Section 15.04(a) and “the Ex-Dividend Date for such distribution” within the meaning of
Section 15.04(b); and

          (B) any shares of Common Stock included in such dividend or distribution shall not be
deemed “outstanding immediately prior to the Ex-Dividend Date for such dividend or
distribution, or the effective date of such share split or share combination, as the case
may be” within the meaning of Section 15.04(a) or “outstanding immediately prior to the
Ex-Dividend Date for such dividend or distribution” within the

72

 

meaning of Section 15.04(b).

          In no event shall the Conversion Rate be decreased pursuant to this Section 15.04(c) (subject
to the readjustment provisions set forth in this Section 15.04(c)).

          (d) If the Company shall make any cash dividend or distribution to all or substantially all
holders of its Common Stock during any quarterly fiscal period in an amount that exceeds the
Initial Dividend Threshold, the Conversion Rate shall be adjusted based on the following formula:

     where

	 	 	 	 	 

	CR0

	 	=
	 	the Conversion Rate in effect immediately prior to 9:00 a.m.,
New York City time, on the Ex-Dividend Date for such dividend or distribution;
	 
	 	 	 	 
	CR’

	 	=
	 	the Conversion Rate in effect immediately after 9:00
a.m., New York City time, on the Ex-Dividend Date for such dividend or
distribution;
	 
	 	 	 	 
	SP0

	 	=
	 	the Last Reported Sale Price of the Common Stock on the Trading
Day immediately preceding the Ex-Dividend Date for such dividend or
distribution; and
	 
	 	 	 	 
	C

	 	=
	 	the amount in cash per share the Company distributes
to holders of its Common Stock in excess of the Initial Dividend Threshold.

          provided that if “C” as set forth above is equal to or greater than “SP0”
as set forth above, in lieu of the foregoing adjustment, each Noteholder shall receive, in
respect of each $1,000 principal amount of Notes, at the same time and upon the same terms as
holders of shares of Common Stock, the amount of cash that such Noteholder would have received had
such Noteholder owned a number of shares of Common Stock equal to the Conversion Rate in effect on
the Ex-Dividend Date for the distribution of such cash dividend or distribution.

          The Initial Dividend Threshold is subject to adjustment in a manner inversely proportional to
adjustments to the Conversion Rate, provided that no adjustment will be made to the Initial
Dividend Threshold for any adjustment made to the Conversion Rate under this Section 15.04(d).

          Such adjustment shall become effective immediately after 9:00 a.m., New York City time, on the
Ex-Dividend Date for such dividend or distribution. If such dividend or distribution is not so paid
or made, the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be
in effect if such dividend or distribution had not been declared.

          In no event shall the Conversion Rate be decreased pursuant to this Section

73

 

15.04(d) (subject
to the readjustment provision set forth in this Section 15.04(d)).

          For the avoidance of doubt, for purposes of this Section 15.04(d), in the event of any
reclassification of the Common Stock, as a result of which the Notes become convertible into more
than one class of Common Stock, if an adjustment to the Conversion Rate is required pursuant to
this Section 15.04(d), references in this Section to one share of Common Stock or Last Reported
Sale Price of one share of Common Stock shall be deemed to refer to a unit or to the price of a
unit consisting of the number of shares of each class of Common Stock into which the Notes are then
convertible equal to the numbers of shares of such class issued in respect of one share of Common
Stock in such reclassification. The above provisions of this paragraph shall similarly apply to
successive reclassifications.

          (e) If the Company or any of its Subsidiaries makes a payment in respect of a tender offer or
exchange offer for the Common Stock and the cash and value of any other consideration included in
the payment per share of the Common Stock exceeds the average of the Last Reported Sale Prices of
the Common Stock over the ten consecutive Trading Day period commencing on, and including, the
Trading Day next succeeding the last date on which tenders or exchanges may be made pursuant to
such tender or exchange offer, the Conversion Rate shall be increased based on the following
formula:

     where

	 	 	 	 	 

	CR0

	 	=
	 	the Conversion Rate in effect at 5:00 p.m., New York City time, on the last
Trading Day of the ten consecutive Trading Day period commencing on, and including, the
Trading Day next succeeding the date such tender or exchange offer expires;
	 
	 	 	 	 
	CR’

	 	=
	 	the Conversion Rate in effect immediately after 5:00 p.m., New York City
time, on the Trading Day next succeeding the date such tender or exchange offer
expires;
	 
	 	 	 	 
	AC

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

	 	=
	 	the number of shares of Common Stock outstanding immediately prior to the
date such tender or exchange offer expires (prior to giving effect to such tender offer
or exchange offer);
	 
	 	 	 	 
	OS’

	 	=
	 	the number of shares of Common Stock outstanding immediately after the date
such tender or exchange offer expires (after giving effect to such tender offer or
exchange offer); and
	 
	 	 	 	 
	SP’

	 	=
	 	the average of the Last Reported Sale Prices of Common Stock over the

74

 

	 	 	 	 	 

	 

	 	 	 	ten
consecutive Trading Day period commencing on, and including, the Trading Day next
succeeding the date such tender or exchange offer expires.

Such adjustment shall become effective at 5:00 p.m., New York City time, on the Trading Day next
succeeding the date such tender or exchange offer expires. If a tender or exchange offer expires
less than 12 Trading Days prior to the settlement date in respect of any conversion, references in
this Section 15.04(e) to ten Trading Days shall be deemed replaced, for purposes of calculating the
affected Daily Conversion Values in respect of that conversion, with such lesser number of Trading
Days as have elapsed between the date that such tender or exchange offer expires and the Trading
Day immediately preceding such settlement date.

If the Company is obligated to purchase shares pursuant to any such tender or exchange offer, but
the Company is permanently prevented by applicable law from effecting any or all or any portion of
such purchases or all such purchases are rescinded, the Conversion Rate shall again be adjusted to
be the Conversion Rate that would then be in effect if such tender or exchange offer had not been
made or had been made only in respect of the purchases that had been effected. In no event shall
the Conversion Rate be decreased pursuant to this Section 15.04(e) (except to the extent provided
in the preceding sentence).

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

          (g) [Reserved].

          (h) Notwithstanding this Section 15.03 or any other provision of this Indenture or the Notes,
if any Conversion Rate adjustment becomes effective, or any Ex-Dividend Date for any issuance,
dividend or distribution (relating to a required Conversion Rate adjustment) occurs, during the
period beginning on, and including, 9:00 a.m., New York City time, on a Conversion Date and ending
on, and including, (x) 5:00 p.m., New York City time, on the third Trading Day immediately
following the relevant Conversion Date (if the Company elects to satisfy the related Conversion
Obligation solely in shares of Common Stock) or (y) 5:00 p.m., New York City time, on the last
Trading Day of a related Cash Settlement Averaging Period (in the case of any other Settlement
Method), the Board of Directors shall make adjustments to the Conversion Rate and the amount of
cash or number of shares of Common Stock issuable upon conversion of the Notes, as the case may be,
as is be necessary or appropriate to effect the intent of this Section 15.03 and the other
provisions of Article 15 and to avoid unjust or inequitable results, as determined in good faith by
the Board of Directors. Any adjustment made pursuant to this Section 15.03(h) shall apply in lieu
of the adjustment or other term that would otherwise be applicable.

75

 

          (i) In addition to those required by clauses (a), (b), (c), (d) and (e) of this Section 15.04,
and to the extent permitted by applicable law and subject to the applicable rules of The Nasdaq
Global Select Market, the Company from time to time may increase the Conversion Rate by any amount
for a period of at least 20 Business Days if the Board of Directors determines that such increase
would be in the Company’s best interest. In addition, the Company may also (but is not required
to) increase the Conversion Rate to avoid or diminish any income tax to holders of Common Stock or
rights to purchase Common Stock in connection with any dividend or distribution of shares (or
rights to acquire shares) or similar event. Whenever the Conversion Rate is increased pursuant to
the preceding sentence, the Company shall mail to the Noteholder at its last address appearing on
the Note Register provided for in Section 2.06 a notice of the increase at least 15 days prior to
the date the increased Conversion Rate takes effect, and such notice shall state the increased
Conversion Rate and the period during which it will be in effect.

          (j) In no event will the Company adjust the Conversion Rate to the extent that the adjustment
would reduce the Conversion Price below the par value per share of its Common Stock.

          (k) Except as stated herein, the Company shall not adjust the Conversion Rate for the issuance
of shares of its Common Stock or any securities convertible into or exchangeable for shares of its
Common Stock or the right to purchase shares of its Common Stock or such convertible or
exchangeable securities. Without limiting the foregoing, the applicable Conversion Rate will not
be adjusted:

          (i) upon the issuance of any shares of the 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 Common Stock
under any plan;

          (ii) upon the issuance of any shares of the Common Stock pursuant to any present or
future employee, director or consultant benefit plan or program of or assumed by the Company
or any of the Company’s Subsidiaries;

          (iii) upon the issuance of any shares of the Common Stock pursuant to any option,
warrant, right or exercisable, exchangeable or convertible security not described in Section
15.04(k)(ii) and outstanding as of the date the Notes were first issued;

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

          (v) for accrued and unpaid interest, if any; or

          (vi) for any transactions described in this Section 15.04 if Noteholders participate
(as a result of holding the Notes, and at the same time and on the same terms as holders of
Common Stock participate and without having to convert their Notes) in such transactions as
if such Noteholders held a number shares of Common Stock equal to the Conversion Rate at the
time such adjustment would be required, multiplied by the principal amount (expressed in
thousands) of Notes held by such Noteholder.

76

 

          (l) All calculations and other determinations under this Article 15 shall be made by the
Company and shall be made to the nearest one-ten thousandth (1/10,000) of a share. No adjustment
in the Conversion Rate shall be required unless such adjustment would require an increase or
decrease of at least 1% in such Conversion Rate; provided, however, that any adjustments which by
reason of this Section 15.04 are not required to be made shall be carried forward and taken into
account in any subsequent adjustment. Notwithstanding the foregoing, upon any conversion of Notes,
the Company shall give effect to all adjustments that it has otherwise deferred pursuant to the
immediately preceding sentence, and those adjustments will no longer be carried forward and taken
into account in any future adjustment.

          (m) Whenever the Conversion Rate is adjusted as herein provided, the Company shall promptly
file with the Trustee and any Conversion Agent other than the Trustee an Officers’ Certificate
setting forth the Conversion Rate after such adjustment and setting forth a brief statement of the
facts requiring such adjustment. Unless and until a Responsible Officer of the Trustee shall have
received such Officers’ Certificate, the Trustee shall not be deemed to have knowledge of any
adjustment of the Conversion Rate and may assume without inquiry that the last Conversion Rate of
which it has knowledge is still in effect. Promptly after delivery of such certificate, the
Company shall prepare a notice of such adjustment of the Conversion Rate setting forth the adjusted
Conversion Rate and the date on which each adjustment becomes effective and shall mail such notice
of such adjustment of the Conversion Rate to the holder of each Note at its last address appearing
on the Note Register provided for in Section 2.06 of this Indenture, within ten days of the
effective date of such adjustment. Failure to deliver such notice shall not affect the legality or
validity of any such adjustment.

          (n) For purposes of this Section 15.04, the number of shares of Common Stock at any time
outstanding shall not include shares held in the treasury of the Company but shall include shares
issuable in respect of scrip certificates issued in lieu of fractions of shares of Common Stock.
The Company will not pay any dividend or make any distribution on shares of Common Stock held in
the treasury of the Company.

          Section 15.05. [Reserved].

          Section 15.06. Effect of Reclassification, Consolidation, Merger or Sale. Upon the occurrence
of:

     (i) any reclassification or change of the outstanding shares of Common Stock (other
than a change in par value, or from par value to no par value, or from no par value to par
value, or as a result of a split, subdivision or combination covered by Section 15.04(a));

     (ii) any consolidation, merger or combination involving the Company; or

     (iii) any sale, conveyance, transfer, lease or other disposition of all or
substantially all of the property and assets of the Company to any other Person,

     in each case pursuant to which Common Stock shall be converted into, or exchanged for, stock,
securities or other property or assets (including cash or any combination thereof) (any such event
a “Merger Event”), then:

77

 

          (a) the Company or the successor or purchasing Person, as the case may be, shall execute with
the Trustee a supplemental indenture (which shall comply with the Trust Indenture Act as in force
at the date of execution of such supplemental indenture if such supplemental indenture is then
required to so comply) permitted under Section 11.01(b) providing for the conversion and settlement
of the Notes as set forth in this Indenture. Such supplemental indenture shall provide for
adjustments that shall be as nearly equivalent as may be practicable to the adjustments provided
for in this Article 15. If, in the case of any Merger Event, the Reference Property includes
shares of stock or other securities and assets of a corporation other than the successor or
purchasing corporation, as the case may be, in such reclassification, change, consolidation,
merger, combination, sale, conveyance, transfer, lease or other disposition, then such supplemental
indenture shall also be executed by such other corporation and shall contain such additional
provisions to protect the interests of the Noteholders as the Board of Directors shall reasonably
consider necessary by reason of the foregoing, including to the extent required by the Board of
Directors and practicable the provisions providing for the repurchase rights set forth in Article
19 herein.

          In the event the Company shall execute a supplemental indenture pursuant to this Section
15.06, the Company shall promptly file with the Trustee an Officers’ Certificate briefly stating
the reasons therefore, the kind or amount of stock, securities or other property or assets
(including cash or any combination thereof) that will comprise the Reference Property after any
such Merger Event, any adjustment to be made with respect thereto and that all conditions precedent
have been complied with, and shall promptly mail notice thereof to all Noteholders. The Company
shall cause notice of the execution of such supplemental indenture to be mailed to each Noteholder,
at its address appearing on the Note Register provided for in this Indenture, within 20 days after
execution thereof. Failure to deliver such notice shall not affect the legality or validity of
such supplemental indenture.

          (b) Notwithstanding the provisions of Section 15.02(b), and subject to the provisions of
Section 15.01 and Section 15.03, at and after the effective time of such Merger Event:

     (i) the right to convert each $1,000 principal amount of Notes into cash, shares of
Common Stock or a combination of cash and shares of Common Stock will be changed to a right
to convert such Note into cash, the kind and amount of shares of stock, securities or other
property or assets (including cash or any combination thereof) that a holder of a number of
shares of Common Stock equal to the Conversion Rate immediately prior to such transaction
would have owned or been entitled to receive (the “Reference Property”), or a combination of
cash and Reference Property; and

     (ii) the related Conversion Obligation shall be settled as set forth under Section
15.06(c), it being understood and agreed that for purposes of Section 15.01(b), references
therein to “the Last Reported Sale Price of the Common Stock” shall be deemed at and after
the effective time of such Merger Event to be references to “the Last Reported Sale Price of
a unit of Reference Property comprised of the kind and amount of shares of stock, securities
or other property or assets (including cash or any combination thereof) that a holder of one
share of Common Stock immediately prior to such Merger Event would have owned or been
entitled to receive (based on the Weighted Average

78

 

Consideration, if applicable). The Company shall not become a party to any Merger
Event unless its terms are consistent with this Section 15.06. None of the foregoing
provisions shall affect the right of a holder of Notes to convert its Notes based on the
Common Stock and settled in cash, shares of Common Stock or a combination of cash and shares
of Common Stock, as applicable, at the Company’s election, as set forth in Section 15.01 and
Section 15.02 prior to the effective date of such Merger Event.

          (c) With respect to each $1,000 principal amount of Notes surrendered for conversion after the
effective date of any such Merger Event, the Company’s Conversion Obligation shall be settled in
cash, units of Reference Property or a combination of cash and units of Reference Property, at the
Company’s election, in accordance with Section 15.02(b) as follows:

          (i) (A) if the Company elects to satisfy its Conversion Obligation in respect of such
conversion by delivering solely Reference Property, the Company shall deliver to the
converting Noteholder a number of units of Reference Property (each such unit comprised of
the kind and amount of shares of stock, securities or other property or assets (including
cash or any combination thereof) that a holder of one share of Common Stock immediately
prior to such Merger Event would have owned or been entitled to receive (based on the
Weighted Average Consideration, if applicable) equal to (1) the aggregate principal amount
of Notes to be converted, divided by $1,000, multiplied by (2) the then-applicable
Conversion Rate (as adjusted to reflect the applicable number of units of Reference
Property);

          (B) if the Company elects to satisfy its Conversion Obligation in respect of such
conversion by paying solely cash, the Company shall pay to the converting Noteholder cash in
an amount, per $1,000 principal amount of Notes equal to the sum of the Daily Conversion
Values for each of the 40 consecutive VWAP Trading Days during the related Cash Settlement
Averaging Period, such Daily Conversion Values determined as if the reference to “the VWAP
of the Common Stock” in definition thereof were instead a reference to “the VWAP of a unit
of Reference Property comprised of the kind and amount of shares of stock, securities or
other property or assets (including cash or any combination thereof) that a holder of one
share of Common Stock immediately prior to such Merger Event would have owned or been
entitled to receive (based on the Weighted Average Consideration, if applicable); and (C) if
the Company elects to satisfy its Conversion Obligation through delivery of a combination of
cash and Reference Property, the Company shall deliver in respect of each $1,000 principal
amount of Notes being converted, a Settlement Amount equal to the sum of the Daily
Settlement Amounts for each of the 40 consecutive VWAP Trading Days during the Cash
Settlement Averaging Period for such Note, such Daily Settlement Values determined as if the
reference to “the VWAP of the Common Stock” in definition of Daily Conversion Value and
Daily Share Amount were instead a reference to “the VWAP of a unit of Reference Property
comprised of the kind and amount of shares of stock, securities or other property or assets
(including cash or any combination thereof) that a holder of one share of Common Stock
immediately prior to such Merger Event would have owned or been entitled to receive (based
on the Weighted Average Consideration, if applicable).

79

 

          (ii) The Company will deliver the cash in lieu of fractional units of Reference
Property as set forth pursuant to Section 15.02(l) (provided that the amount of such cash
shall be determined as if references in such Section to “the Last Reported Sale Price of the
Common Stock” were instead a reference to “the Last Reported Sale Price of a unit of
Reference Property comprised of the kind and amount of shares of stock, securities or other
property or assets (including cash or any combination thereof) that a holder of one share of
Common Stock immediately prior to such Merger Event would have owned or been entitled to
receive (based on the Weighted Average Consideration, if applicable).

          (iii) The Daily Settlement Amounts (if applicable) and Daily Conversion Values (if
applicable) shall be determined by the Company promptly following the last day of the Cash
Settlement Averaging Period.

          (iv) For purposes of this Section 15.06, if the Merger Event causes the Common Stock to
be converted into the right to receive more than a single type of consideration (determined
based in part upon any form of stockholder election), the Reference Property into which the
notes will be convertible will be deemed to be the weighted average of the kinds and amounts
of consideration received by the holders of Common Stock that affirmatively make such an
election (the “Weighted Average Consideration”).

          (v) The Company shall notify the Noteholders of the Weighted Average Consideration as
soon as practicable after the Weighted Average Consideration is determined.

          (d) The above provisions of this Section shall similarly apply to successive Merger Events.

          Section 15.07. Certain Covenants. (a) The Company shall, prior to the issuance of any Notes
hereunder, and from time to time as may be necessary, reserve out of its authorized but unissued
Common Stock or shares of Common Stock held in treasury, a sufficient number of shares of Common
Stock, free of preemptive rights, to permit the conversion of the Notes.

          (b) The Company covenants that all shares of Common Stock issued upon conversion of Notes
shall be fully paid and non-assessable by the Company and free from all taxes, liens and charges
with respect to the issue thereof.

          (c) The Company covenants that, if any shares of Common Stock to be provided for the purpose
of conversion of Notes hereunder require registration with or approval of any governmental
authority under any federal or state law before such shares may be validly issued upon conversion,
the Company will, to the extent then permitted by the rules and interpretations of the SEC, secure
such registration or approval, as the case may be.

          (d) The Company further covenants that if at any time the Common Stock shall be listed on any
national securities exchange or automated quotation system the Company will list and keep listed,
so long as the Common Stock shall be so listed on such exchange or automated quotation system, any
Common Stock issuable upon conversion of the Notes.

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          Section 15.08. Responsibility of Trustee. The Trustee and any other Conversion Agent shall
not at any time be under any duty or responsibility to any Noteholder to determine the Conversion
Rate (or any adjustment thereto) or Conversion Price or whether any facts exist that may require
any adjustment (including any increase) of the Conversion Rate, or with respect to the nature or
extent or calculation of any such adjustment when made, or with respect to the method employed, or
herein or in any supplemental indenture provided to be employed, in making the same.

          The Trustee and any other Conversion Agent shall not be accountable with respect to the
validity or value (or the kind or amount) of any shares of Common Stock, or of any securities,
property or cash that may at any time be issued or delivered upon the conversion of any Note; and
the Trustee and any other Conversion Agent make no representations with respect thereto.

          Neither the Trustee nor any Conversion Agent shall be responsible for any failure of the
Company to issue, transfer or deliver any shares of Common Stock or stock certificates or other
securities or property or cash upon the surrender of any Note for the purpose of conversion or to
comply with any of the duties, responsibilities or covenants of the Company contained in this
Article.

          Without limiting the generality of the foregoing, neither the Trustee nor any Conversion Agent
shall be under any responsibility to determine the correctness of any provisions contained in any
supplemental indenture entered into pursuant to Section 15.06 relating either to the kind or amount
of shares of stock or securities or property (including cash) receivable by Noteholders upon the
conversion of their Notes after any event referred to in such Section 15.06 or to any adjustment to
be made with respect thereto, but, subject to the provisions of Section 8.01, may accept (without
any independent investigation) as conclusive evidence of the correctness of any such provisions,
and shall be protected in relying upon, the Officers’ Certificate (which the Company shall be
obligated to file with the Trustee prior to the execution of any such supplemental indenture) with
respect thereto.

          Neither the Trustee nor the Conversion Agent shall be responsible for determining whether any
event contemplated by Section 15.01(b) has occurred that makes the Notes eligible for conversion or
no longer eligible therefor until the Company has delivered to the Trustee and the Conversion Agent
the notices referred to in Section 15.01(b) with respect to the commencement or termination of such
conversion rights, on which notices the Trustee and the Conversion Agent may conclusively rely, and
the Company agrees to deliver such notices to the Trustee and the Conversion Agent immediately
after the occurrence of any such event or at such other times as shall be provided for in Section
15.01(b).

          Section 15.09. Notice to Noteholders Prior to Certain Actions. In case:

          (a) the Company shall declare a dividend (or any other distribution) on its Common Stock that
would require an adjustment in the Conversion Rate pursuant to Section 15.04; or

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          (b) the Company shall authorize the granting to all of the holders of its Common Stock of
rights, options or warrants to subscribe for or purchase any share of any class or any other
rights, options or warrants; or

          (c) of any reclassification of the Common Stock of the Company (other than a subdivision or
combination of its outstanding Common Stock, or a change in par value, or from par value to no par
value, or from no par value to par value), or of any consolidation or merger to which the Company
is a party and for which approval of any stockholders of the Company is required, or of the sale,
conveyance, transfer, lease or other disposition of all or substantially all of the assets of the
Company; or

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

the Company shall cause to be filed with the Trustee and to be mailed to each Noteholder at its
address appearing on the Note Register, provided for in Section 2.06 of this Indenture, as promptly
as possible but in any event at least 20 days prior to the applicable date hereinafter specified, a
notice stating:

          (i) the date on which a record is to be taken for the purpose of such dividend, distribution
or rights, options or warrants, or, if a record is not to be taken, the date as of which the
holders of Common Stock of record to be entitled to such dividend, distribution or rights are to be
determined; or

          (ii) the date on which such reclassification, consolidation, merger, sale, conveyance,
transfer, lease or other disposition dissolution, liquidation or winding-up is expected to become
effective or occur, and the date as of which it is expected that holders of Common Stock of record
shall be entitled to exchange their Common Stock for securities or other property deliverable upon
such reclassification, consolidation, merger, sale, conveyance, transfer, lease or other
disposition, dissolution, liquidation or winding-up. Failure to give such notice, or any defect
therein, shall not affect the legality or validity of such dividend, distribution,
reclassification, consolidation, merger, sale, conveyance, transfer, lease or other disposition,
dissolution, liquidation or winding-up.

          Section 15.10. Stockholder Rights Plans. To the extent that the Company has a stockholder
rights agreement or other “poison pill” in effect upon conversion of the Notes, each share of
Common Stock, if any, issued upon such conversion shall be entitled to receive the appropriate
number of rights, if any, and the certificates representing the Common Stock issued upon such
conversion shall bear such legends, if any, in each case as may be provided by the terms of any
such stockholder rights agreement or other poison pill, as the same may be amended from time to
time. If at the time of conversion, however, the rights have separated from the shares of Common
Stock in accordance with the provisions of the applicable stockholder rights agreement or other
poison pill so that the Noteholders would not be entitled to receive any rights in respect of
Common Stock, if any, issuable upon conversion of the Notes, the Conversion Rate will be adjusted
at the time of separation as if the Company has distributed to all or substantially all holders of
Common Stock, Distributed Property as provided in Section 15.04(c), subject to readjustment in the
event of the expiration, termination or redemption of such rights.

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          Section 15.11. Exchange in Lieu of Conversion. When a holder surrenders its Notes for
conversion, the Company may, at its election (an “Exchange Election”), direct the Conversion Agent
to surrender, on or prior to the second Business Day following the relevant Conversion Date, such
Notes to a financial institution designated by the Company (the “Designated Institution”) for
exchange in lieu of conversion. In order to accept any Notes surrendered for conversion for
exchange in lieu of conversion, the Designated Institution must agree to timely deliver, in
exchange for such Notes, cash, the shares of Common Stock or a combination of cash and Common Stock
that would otherwise be due upon conversion as described in Section 15.02 above and in respect of
which the Company has notified to converting Noteholders. If the Company makes the election
described above, the Company shall, by 5:00 p.m., New York City time, on the second Business Day
following the relevant Conversion Date as part of its Settlement Notice, notify the holder
surrendering its Notes for conversion that it has made such Exchange Election. In addition, the
Company shall concurrently notify the Designated Institution of the Settlement Method (and, if
applicable, the Specified Dollar Amount) that Company has elected with respect to such conversion
and the relevant deadline for delivery of the consideration due upon conversion. Any Notes
exchanged by the Designated Institution will remain outstanding.

          (a) If the Designated Institution agrees to accept any Notes for exchange but does not timely
deliver the related consideration due upon conversion to the Conversion Agent, or if the Designated
Institution does not accept such Notes for exchange, the Company shall, within the time period
specified in Section 15.02(e), convert such Notes into cash and/or shares of Common Stock, as
applicable in accordance with the provisions of Section 15.02, as if it had not made such Exchange
Election.

          (b) For the avoidance of doubt, in no event will the Company’s designation of a Designated
Institution pursuant to this Section 15.11 require the Designated Institution to accept any Notes
for exchange.

          Section 15.12. Limitations Relating to the NASDAQ Shareholder Approval Requirements. Prior to
entering into a transaction or series of transactions that would cause the Company to be unable to
satisfy its Conversion Obligation in full solely in shares of Common Stock, the Company shall
obtain prior stockholder approval in accordance with the Nasdaq listing standards to the extent
required thereunder. In addition, in the event the Company elects to satisfy its Conversion
Obligation in a combination of cash and shares of Common Stock and the number of shares issuable
upon conversion would exceed 19.99% of the number of shares of Common Stock outstanding as of May
4, 2011, the Company will either obtain stockholder approval of any issuance of Common Stock upon
conversion of the Notes in excess such limitations or deliver cash in lieu of any shares of Common
Stock otherwise deliverable upon conversions in excess of such limitations (such amount of cash to
be based on the last Trading Day of the related Cash Settlement Averaging Period).

ARTICLE 16

SUBORDINATION

          Section 16.01. Agreement to Subordinate. The Company agrees, and each Noteholder by accepting
a Note agrees, that the indebtedness evidenced by the Notes is an

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unsecured obligation and such indebtedness and all rights with respect thereto will be
subordinated in right of payment, to the extent and in the manner provided in this Article 16, to
the prior payment in full in cash of the Company’s obligations under the Senior Credit Facility and
the Hedging Obligations and that the subordination is for the benefit of and enforceable by the
Lenders and the Counterparties and their respective Representatives. The Notes shall in all
respects rank pari passu in right of payment with all other existing and future Senior Indebtedness
of the Company other than indebtedness under the Senior Credit Facility and the Hedging
Obligations, and shall rank senior to future Subordinated Obligations of the Company; and other
than indebtedness under the Senior Credit Facility and the Hedging Obligations only indebtedness of
the Company that is Secured Indebtedness of the Company shall rank senior to the Notes in
accordance with the provisions set forth herein to the extent of the value of the assets securing
such Secured Indebtedness.

          Section 16.02. Liquidation, Dissolution, Bankruptcy. Upon any payment or distribution of the
assets of the Company to its creditors upon a total or partial liquidation or a total or partial
dissolution of the Company or in a bankruptcy, reorganization, insolvency, receivership or similar
proceeding relating to the Company or its property:

          (a) the Lenders and the Counterparties shall be entitled to receive payment in full in cash of
such amounts owing under the Senior Credit Facility and the Hedging Obligations before Noteholders
shall be entitled to receive any payment of principal of or interest, if any, on, or any other
amounts in conjunction with, the Notes form the Company; and

          (b) until the Lenders and the Counterparties are paid in full in cash, any payment or
distribution or other amount to which Noteholders would be entitled but for this Article 16 shall
be made to the Lenders and the Counterparties or their respective Representatives as their
interests may appear, except that Noteholders may receive shares of stock and any debt securities
that are subordinated to the Senior Credit Facility and the Hedging Obligations to at least the
same extent as the Notes.

          Section 16.03. Default on Senior Credit Facility and Hedging Obligations. The Company may not
pay the principal of and interest on the Notes, make any deposit pursuant to Article 4 or otherwise
repurchase, redeem or otherwise retire any Notes (collectively, “pay the Notes”) if:

          (a) any amounts owing under the Senior Credit Facility and the Hedging Obligations are not
paid in full in cash when due; or

          (b) any default under the Senior Credit Facility or the Hedging Obligations occurs and the
maturity of the Senior Credit Facility is accelerated in accordance with its terms

unless, in either case:

     (i) the default has been cured or waived and any such acceleration has been
rescinded; or

     (ii) any amounts owing under the Senior Credit Facility and the Hedging
Obligations have been paid in full in cash;

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          provided, however, that the Company may pay the Notes without regard to the foregoing if the
Company and the Trustee receive written notice approving such payment from the Representative of
the Lenders (who shall, unless the majority of the Lenders notify the Trustee otherwise, be the
Administrative Agent) with respect to which either of the events set forth in clause (a) or (b) of
this sentence has occurred and is continuing.

          During the continuance of any default (other than a default described in clause (a) or (b) of
the preceding sentence) with respect to the Senior Credit Facility or the Hedging Obligations
pursuant to which the maturity thereof may be accelerated immediately without further notice
(except such notice as may be required to effect such acceleration) or the expiration of any
applicable grace periods, the Company may not pay the Notes for a period (a “Payment Blockage
Period”) commencing upon the receipt by the Trustee (with a copy to the Company) of written notice
(a “Blockage Notice”) of such default from the Administrative Agent specifying an election to
effect a Payment Blockage Period and ending 179 days thereafter (or earlier if such Payment
Blockage Period is terminated (a) by written notice to the Trustee and the Company from the Person
or Persons who gave such Blockage Notice, (b) by repayment in full in cash of all amounts owing
under the Senior Credit Facility and the Hedging Obligations or (c) because no default with respect
to the Senior Credit Facility and the Hedging Obligations is continuing). Notwithstanding the
provisions described in the immediately preceding sentence (but subject to the provisions contained
in the first sentence of this Section 16.03), the Company may resume payments on the Notes after
the end of such Payment Blockage Period, unless the Representative of the Lenders shall have
accelerated the maturity of the Senior Credit Facility, and such amounts owing under the Senior
Credit Facility and the Hedging Obligations have not been repaid in full in cash.

          Section 16.04. Acceleration of Payment of Notes. If payment of the Notes is accelerated
because of an Event of Default, the Trustee (provided that the Trustee shall have received written
notice from the Company or its Representative) shall promptly notify the Representative of the
Lenders and the Counterparties. If any amounts owing under the Senior Credit Facility and the
Hedging Obligations are outstanding, the Company may not pay the Notes until five Business Days
after the Administrative Agent and the Counterparties receive notice of such acceleration and,
thereafter, may pay the Notes only if this Article 16 otherwise permits payment at that time.

          Section 16.05. When Distribution Must Be Paid Over. If a payment or distribution is made to
Noteholders that because of this Article 16 should not have been made to them, the Noteholders who
receive the payment or distribution shall hold it in trust for the Lenders and the Counterparties
and pay it over to them and their respective Representatives as their interests may appear.

          Section 16.06. Subrogation. After all amounts owing under the Senior Credit Facility and the
Hedging Obligations are paid in full in cash and until the Notes are paid in full, Noteholders
shall be subrogated to the rights of the Lenders and the Counterparties to receive distributions
applicable to the Senior Credit Facility and the Hedging Obligations. A distribution made under
this Article 16 to the Lenders and the Counterparties which otherwise would have been made to
Noteholders is not, as between the Company and Noteholders, a payment by the Company on the Senior
Credit Facility and the Hedging Obligations.

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          Section 16.07. Relative Rights. This Article 16 defines the relative rights of Noteholders
and the Lenders and the Counterparties. Nothing in this Indenture shall:

          (a) impair, as between the Company and Noteholders, the obligation of the Company, which is
absolute and unconditional, to pay principal of and interest, if any, on the Notes in accordance
with their terms; or

          (b) prevent the Trustee or any Noteholder from exercising its available remedies upon a
Default, subject to the rights of the Lenders and the Counterparties and their respective
Representatives to receive distributions otherwise payable to Noteholders.

          Section 16.08. Subordination May Not Be Impaired by Company. No right of the Representative
of the Lenders, any Lender or Counterparty to enforce the subordination of the indebtedness
evidenced by the Notes shall be impaired by any act or failure to act by the Company or by its
failure to comply with this Indenture.

          Section 16.09. Rights of Trustee and Paying Agent. Notwithstanding Section 16.03, the Trustee
or Paying Agent may continue to make payments on the Notes and shall not be charged with knowledge
of the existence of facts that would prohibit the making of any such payments unless, not less than
two Business Days prior to the date of such payment, a Responsible Officer of the Trustee receives
written notice satisfactory to it that payments may not be made under this Article 16. The
Company, the Note Registrar, the Paying Agent, the Administrative Agent, a Representative of the
Lenders and the Counterparties or any such Lender or counterparty (as identified by the Company)
may give the notice.

          The Trustee in its individual or any other capacity may be a Lender or a Counterparty with the
same rights it would have if it were not Trustee. The Note Registrar and the Paying Agent may do
the same with like rights. The Trustee shall be entitled to all the rights set forth in this
Article 16 with respect to the Senior Credit Facility and the Hedging Obligations which may at any
time be held by it, to the same extent as any other Lender or Counterparty; and nothing in Article
8 shall deprive the Trustee of any of its rights as such holder. Nothing in this Article 16 shall
apply to claims of, or payments to, the Trustee under or pursuant to Section 8.06 or any other
Section of this Indenture.

          Section 16.10. Distribution or Notice to Representative. Whenever a distribution is to be
made or a notice given to Lenders and the Counterparties, the distribution may be made and the
notice given to their Representative (if any).

          Section 16.11. Article 16 Not to Prevent Events of Default or Limit Right to Accelerate. The
failure to make a payment pursuant to the Notes by reason of any provision in this Article 16 shall
not be construed as preventing the occurrence of a Default. Nothing in this Article 16 shall have
any effect on the right of the Noteholders or the Trustee to accelerate the maturity of the Notes.

          Section 16.12. [Reserved].

          Section 16.13. Trustee Entitled to Rely. Upon any payment or distribution pursuant to this
Article 16, the Trustee and the Noteholders shall be entitled to rely (a) upon any

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order or decree of a court of competent jurisdiction in which any proceedings of the nature
referred to in Section 16.02 are pending, (b) upon a certificate of the liquidating trustee or
agent or other Person making such payment or distribution to the Trustee or to the Noteholders or
(c) upon the Representatives for the Lenders and the Counterparties for the purpose of ascertaining
the Persons entitled to participate in such payment or distribution, the Lenders and the
Counterparties and other holders of indebtedness of the Company, the amount thereof or payable
thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or
to this Article 16. In the event that the Trustee determines, in good faith, that evidence is
required with respect to the right of any Person as a Lender or Counterparty to participate in any
payment or distribution pursuant to this Article 16, the Trustee may request such Person to furnish
evidence to the reasonable satisfaction of the Trustee as to the amounts owing to such Person under
the Senior Credit Facility and the Hedging Obligations, the extent to which such Person is entitled
to participate in such payment or distribution and other facts pertinent to the rights of such
Person under this Article 16, and, if such evidence is not furnished, the Trustee may defer any
payment to such Person pending judicial determination as to the right of such Person to receive
such payment. The provisions of Sections 8.01 and 8.02 shall be applicable to all actions or
omissions of actions by the Trustee pursuant to this Article 16.

          Section 16.14. Trustee to Effectuate Subordination. Each Noteholder by accepting a Note
authorizes and directs the Trustee on his behalf to take such action as may be necessary or
appropriate to acknowledge or effectuate the subordination between the Noteholders and the Lenders
and the Counterparties as provided in this Article 16 and appoints the Trustee as attorney-in-fact
for any and all such purposes. If the Trustee does not file a proper proof of claim or proof of
debt in the form required in any proceeding referred to in Section 16.02 at least 30 days prior to
the expiration of the time to file such claims the Representatives of the Lenders and the
Counterparties are hereby authorized to file an appropriate proof in any such proceeding.

          Section 16.15. Trustee Not Fiduciary for Lenders or Counterparties. The Trustee shall not be
deemed to owe any fiduciary duty to the Lenders and the Counterparties and shall not be liable to
any such Lenders or counterparties if it shall mistakenly pay over or distribute to Noteholders or
the Company or any other Person, money or assets to which any Lenders and the Counterparties shall
be entitled by virtue of this Article 16 or otherwise.

          Section 16.16. Reliance by Lenders and Counterparties on Subordination Provisions. Each
Noteholder by accepting a Note acknowledges and agrees that the foregoing subordination provisions
are, and are intended to be, an inducement and a consideration to each Lender and Counterparty,
whether Indebtedness was created or acquired before or after the issuance of the Notes, to acquire
and continue to hold, or to continue to hold, such Indebtedness and such Lender and Counterparty
shall be deemed conclusively to have relied on such subordination provisions in acquiring and
continuing to hold, or in continuing to hold, such Indebtedness.

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ARTICLE 17

NOTE GUARANTEES

          Section 17.01. Note Guarantees. (a) Each Note Guarantor hereby jointly and severally
irrevocably and unconditionally Guarantees, as a primary obligor and not merely as a surety, to
each Noteholder and to the Trustee and its successors and assigns the full and punctual payment
when due, whether on any Interest Payment Date or the Maturity Date or any earlier date of
acceleration or otherwise, of all obligations of the Company under this Indenture (including
obligations to the Trustee) and the Notes, whether for payment of principal or interest of the
Notes and all other monetary obligations of the Company under this Indenture and the Notes, whether
for fees, expenses, indemnification or otherwise (all the foregoing being hereinafter collectively
called the “Guaranteed Obligations”). Each Note Guarantor further agrees that the Guaranteed
Obligations may be extended or renewed, in whole or in part, without notice or further assent from
each such Note Guarantor, and that each such Note Guarantor shall remain bound under this Article
17 notwithstanding any extension or renewal of any Guaranteed Obligation.

          (b) Each Note Guarantor waives presentation to, demand of payment from and protest to the
Company of any of the Guaranteed Obligations and also waives notice of protest for nonpayment.
Each Note Guarantor waives notice of any default under the Notes or the Guaranteed Obligations.
The obligations of each Note Guarantor hereunder shall not be affected by:

     (i) the failure of any Noteholder or the Trustee to assert any claim or demand or to
enforce any right or remedy against the Company or any other Person under this Indenture,
the Notes or any other agreement or otherwise;

     (ii) any extension or renewal of any thereof;

     (iii) any rescission, waiver, amendment or modification of any of the terms or
provisions of this Indenture, the Notes or any other agreement;

     (iv) the release of any security held by any Noteholder or the Trustee for the
Guaranteed Obligations or any of them;

     (v) the failure of any Noteholder or Trustee to exercise any right or remedy against
any other Note Guarantor; or

     (vi) any change in the ownership of such Note Guarantor, except as provided in Section
17.03.

          (c) Each Note Guarantor hereby waives any right to which it may be entitled to have its
obligations hereunder divided among the Note Guarantors, such that such Note Guarantor’s
obligations would be less than the full amount claimed. Each Note Guarantor hereby waives any
right to which it may be entitled to have the assets of the Company first be used and depleted as
payment of the Company’s or such Note Guarantor’s obligations hereunder prior to any amounts being
claimed from or paid by such Note Guarantor hereunder. Each Note

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Guarantor hereby waives any right to which it may be entitled to require that the Company be
sued prior to an action being initiated against such Note Guarantor.

          (d) Each Note Guarantor further agrees that its Note Guarantee herein constitutes a guarantee
of payment when due (and not a guarantee of collection) and waives any right to require that any
resort be had by any Noteholder or the Trustee to any security held for payment of the Guaranteed
Obligations.

          (e) The Note Guarantee of each Note Guarantor is, to the extent and in the manner set forth in
Article 18, subordinated and subject in right of payment to the prior payment in full in cash of
the principal of and interest on amounts owing under the Senior Credit Facility and the Hedging
Obligations by the relevant Note Guarantor and is made subject to such provisions of this
Indenture.

          (f) Except as expressly set forth in Sections 17.02 and 17.06, the obligations of each Note
Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination
for any reason (other than payment of the Guaranteed Obligations in full), including any claim of
waiver, release, surrender, alteration or compromise, and shall not be subject to any defense of
setoff, counterclaim, recoupment or termination whatsoever or by reason of the invalidity,
illegality or unenforceability of the Guaranteed Obligations or otherwise. Without limiting the
generality of the foregoing, the obligations of each Note Guarantor herein shall not be discharged
or impaired or otherwise affected by the failure of any Noteholder or the Trustee to assert any
claim or demand or to enforce any remedy under this Indenture, the Notes or any other agreement, by
any waiver or modification of any thereof, by any default, failure or delay, willful or otherwise,
in the performance of the Guaranteed Obligations, or by any other act or thing or omission or delay
to do any other act or thing which may or might in any manner or to any extent vary the risk of any
Note Guarantor or would otherwise operate as a discharge of any Note Guarantor as a matter of law
or equity.

          (g) Subject to Section 17.03, each Note Guarantor agrees that its Note Guarantee shall remain
in full force and effect until payment in full of all the Guaranteed Obligations. Each Note
Guarantor further agrees that its Note Guarantee herein shall continue to be effective or be
reinstated, as the case may be, if at any time payment, or any part thereof, of principal of or
interest, if any, on any Guaranteed Obligation is rescinded or must otherwise be restored by any
Noteholder or the Trustee upon the bankruptcy or reorganization of the Company or otherwise.

          (h) In furtherance of the foregoing and not in limitation of any other right which any
Noteholder or the Trustee has at law or in equity against any Note Guarantor by virtue hereof, upon
the failure of the Company to pay the Guaranteed Obligation when and as the same shall become due,
whether at maturity, by acceleration, by repurchase or otherwise, each Note Guarantor hereby
promises to and shall, upon receipt of written demand by the Trustee, forthwith pay, or cause to be
paid, in cash, to the Noteholders or the Trustee an amount equal to the unpaid amount of such
Guaranteed Obligations and interest, if any, accrued thereon.

          (i) Each Note Guarantor agrees that it shall not be entitled to any right of subrogation in
relation to the Noteholders in respect of any Guaranteed Obligations guaranteed

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hereby until payment in full of all Guaranteed Obligations and all obligations to which the
Guaranteed Obligations are subordinated as provided in Article 18. Each Note Guarantor further
agrees that, as between it, on the one hand, and the Noteholders and the Trustee, on the other
hand:

     (i) the maturity of the Guaranteed Obligations guaranteed hereby may be accelerated as
provided in Article 7 for the purposes of any Note Guarantee herein, notwithstanding any
stay, injunction or other prohibition preventing such acceleration in respect of the
Guaranteed Obligations guaranteed hereby; and

     (ii) in the event of any declaration of acceleration of such Guaranteed Obligations as
provided in Article 7, such Guaranteed Obligations (whether or not due and payable) shall
forthwith become due and payable by such Note Guarantor for the purposes of this Section
17.01.

          (j) Each Note Guarantor also agrees to pay any and all costs and expenses (including
reasonable attorneys’ fees and expenses) incurred by the Trustee or any Noteholder in enforcing any
rights under this Section 17.01.

          (k) Upon request of the Trustee, each Note Guarantor shall execute and deliver such further
instruments and do such further acts as may be reasonably necessary or proper to carry out more
effectively the purpose of this Indenture.

          Section 17.02. Limitation on Liability. Any term or provision of this Indenture to the
contrary notwithstanding, the maximum aggregate amount of the Guaranteed Obligations guaranteed
hereunder by any Note Guarantor shall not exceed the maximum amount that can be hereby guaranteed
without rendering this Indenture, as it relates to such Note Guarantor, voidable under applicable
law relating to fraudulent conveyance or fraudulent transfer or similar laws affecting the rights
of creditors generally.

          Section 17.03. Release of Guarantor. Upon:

     (i) the sale or other disposition (including by way of consolidation or merger), in one
transaction or a series of related transactions, of a majority of the total voting power of
the Capital Stock or other interests of a Guarantor; or

     (ii) the sale or other disposition of all or substantially all the assets of such
Guarantor, such Guarantor shall be deemed released from all obligations under this Article
17 without any further action required on the part of the Trustee or any Noteholder;
provided, however, that such sale or disposition is to a Person other than the Company or
any of its Affiliates. At the request of the Company, the Trustee shall execute and deliver
an appropriate instrument evidencing such release.

          Section 17.04. Successors and Assigns. This Article 17 shall be binding upon each Note
Guarantor and its successors and assigns and shall inure to the benefit of, and be enforceable by,
the Trustee, the Noteholders and the successors and assigns of the Trustee and the Noteholders and,
in the event of any transfer or assignment of rights by any Noteholder or the Trustee, the rights
and privileges conferred upon that party in this Indenture and in the Notes

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shall automatically extend to and be vested in such transferee or assignee, all subject to the
terms and conditions of this Indenture.

          Section 17.05. No Waiver. Neither a failure nor a delay on the part of either the Trustee or
the Noteholders in exercising any right, power or privilege under this Article 17 shall operate as
a waiver thereof, nor shall a single or partial exercise thereof preclude any other or further
exercise of any right, power or privilege. The rights, remedies and benefits of the Trustee and
the Noteholders herein expressly specified are cumulative and not exclusive of any other rights,
remedies or benefits which either may have under this Article 17 at law, in equity, by statute or
otherwise.

          Section 17.06. Modification. No modification, amendment or waiver of any provision of this
Article 17, nor the consent to any departure by any Note Guarantor therefrom, shall in any event be
effective unless the same shall be in writing and signed by the Trustee, and then such waiver or
consent shall be effective only in the specific instance and for the purpose for which given. No
notice to or demand on any Note Guarantor in any case shall entitle such Note Guarantor to any
other or further notice or demand in the same, similar or other circumstances.

          Section 17.07. Execution of Amendment or Supplemental Indenture for Future Note Guarantors.
Each Subsidiary which is required to become a Note Guarantor pursuant to Section 5.11 shall
promptly execute and deliver to the Trustee an amendment or supplemental indenture pursuant to
which such Subsidiary shall become a Note Guarantor under this Article 17 and shall guarantee the
Guaranteed Obligations. Concurrently with the execution and delivery of such amendment or
supplemental indenture, the Company shall deliver to the Trustee an Opinion of Counsel and an
Officers’ Certificate to the effect that such amendment or supplemental indenture has been duly
authorized, executed and delivered by such Subsidiary and that, subject to the application of
bankruptcy, insolvency, moratorium, fraudulent conveyance or transfer and other similar laws
relating to creditors’ rights generally and to the principles of equity, whether considered in a
proceeding at law or in equity, the Note Guarantee of such Note Guarantor is a legal, valid and
binding obligation of such Note Guarantor, enforceable against such Note Guarantor in accordance
with its terms and or to such other matters as the Trustee may reasonably request.

          Section 17.08. Non-Impairment. The failure to endorse a Note Guarantee on any Note shall not
affect or impair the validity thereof.

ARTICLE 18

SUBORDINATION OF THE NOTE GUARANTEES

          Section 18.01. Agreement to Subordinate. Each Note Guarantor agrees, and each Noteholder by
accepting a Note agrees, that the obligations of a Note Guarantor hereunder are subordinated in
right of payment, to the extent and in the manner provided in this Article 18, to the prior payment
in full in cash of all amounts owing by such Note Guarantor under the Senior Credit Facility and
the Hedging Obligations and that the subordination is for the benefit of and enforceable by the
Lenders and the Counterparties and their respective Representatives. The obligations hereunder
with respect to a Note Guarantor shall in all respects rank pari passu in

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right of payment with all other existing and future Senior Indebtedness of such Note Guarantor
other than indebtedness under the Senior Credit Facilities and the Hedging Obligations; will rank
senior to all future Subordinated Indebtedness of each Note Guarantor; and other than Indebtedness
under the Senior Credit Facility and the Hedging Obligations only indebtedness of such Note
Guarantor that is Secured Indebtedness of such Note Guarantor shall rank senior to the obligations
of such Note Guarantor in accordance with the provisions set forth herein to the extent of the
value of the assets securing such Secured Indebtedness.

          Section 18.02. Liquidation, Dissolution, Bankruptcy. Upon any payment or distribution of the
assets of a Note Guarantor to its creditors upon a total or partial liquidation or a total or
partial dissolution of such Note Guarantor or in a bankruptcy, reorganization, insolvency,
receivership or similar proceeding relating to such Note Guarantor or its property:

          (a) the Lenders and the Counterparties shall be entitled to receive payment in full in cash of
such amounts owing under the Senior Credit Facility and Hedging Obligations before Noteholders
shall be entitled to receive any payment pursuant to any Guaranteed Obligations from such Note
Guarantor; and

          (b) until the Lenders and the Counterparties are paid in full in cash, any payment or
distribution or other amount to which Noteholders would be entitled but for this Article 18 shall
be made to the Lenders and the Counterparties or their respective Representatives as their
interests may appear, except that Noteholders may receive shares of stock and any debt securities
that are subordinated to the Senior Credit Facility and the Hedging Obligations to at least the
same extent as the Note Guarantees.

          Section 18.03. Default on Senior Credit Facility or Hedging Obligations of a Note Guarantor.
A Note Guarantor may not make any payment pursuant to any of the Guaranteed Obligations or
repurchase, redeem or otherwise retire any Notes (collectively, “pay its Guarantee”) if:

     (a) any amounts owing under the Senior Credit Facility and the Hedging Obligations are
not paid in cash when due; or

     (b) any default under the Senior Credit Facility and the Hedging Obligations occurs and
the maturity of the Senior Credit Facility is accelerated in accordance with its terms

     unless, in either case:

     (i) the default has been cured or waived and any such acceleration has been
rescinded; or

     (ii) such amounts owing under the Senior Credit Facility and the Hedging
Obligations have been paid in full in cash;

     provided, however, that such Note Guarantor may pay its Guarantee without regard to the
foregoing if such Note Guarantor and the Trustee receive written notice

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approving such payment from the Representative of the Lenders respect to which either
of the events in clause (a) or (b) of this sentence has occurred and is continuing.

          During the continuance of any default (other than a default described in clause (a) or (b) of
the preceding sentence) with respect to the Senior Credit Facility or the Hedging Obligations
pursuant to which the maturity thereof may be accelerated immediately without further notice
(except such notice as may be required to effect such acceleration) or the expiration of any
applicable grace periods, such Note Guarantor may not pay its Guarantee for a period (a “Guarantee
Payment Blockage Period”) commencing upon the receipt by the Trustee (with a copy to such Note
Guarantor and the Company) of written notice (a “Guarantee Blockage Notice”) of such default from
the Representative of the Lenders specifying an election to effect a Guarantee Payment Blockage
Period and ending 179 days thereafter (or earlier if such Guarantee Payment Blockage Period is
terminated (a) by written notice to the Trustee (with a copy to such Note Guarantor and the
Company) from the Person or Persons who gave such Guarantee Blockage Notice, (b) by repayment in
full in cash of all amounts owing under the Senior Credit Facility and the Hedging Obligations or
(c) because no default with respect to the Senior Credit Facility or the Hedging Obligations is
continuing). Notwithstanding the provisions described in the immediately preceding sentence (but
subject to the provisions contained in the first sentence of this Section 18.03), such Note
Guarantor may resume payments with respect to its Note Guarantee after the end of such Guarantee
Payment Blockage Period, unless the Lenders or the Representative of such Lenders shall have
accelerated the maturity of the Senior Credit Facility and amounts owing under the Senior Credit
Facility and the Hedging Obligations have not been repaid in full in cash.

          Section 18.04. Demand for Payment. If payment of the Notes is accelerated because of an Event
of Default and a demand for payment is made on a Note Guarantor pursuant to Article 17, the Trustee
(provided that the Trustee shall have received written notice from the Company, such Note Guarantor
or its Representative) shall promptly notify the Administrative Agent and the Counterparties. If
any amounts owing under Senior Credit Facility and the Hedging Obligations are outstanding, such
Note Guarantor may not pay its Guarantee until five Business Days after the Administrative Agent
and the Counterparties receive notice of such demand and, thereafter, may pay its Guarantee only if
this Article 18 otherwise permits payment at that time.

          Section 18.05. When Distribution Must Be Paid Over. If a payment or distribution is made to
Noteholders that because of this Article 18 should not have been made to them, the Noteholders who
receive the payment or distribution shall hold such payment or distribution in trust for the
Lenders and the Counterparties and pay it over to them and their respective Representatives as
their respective interests may appear.

          Section 18.06. Subrogation. After all amounts owing under the Senior Credit Facility and the
Hedging Obligations are paid in full in cash and until the Notes are paid in full, Noteholders
shall be subrogated to the rights of the Lenders and the Counterparties to receive distributions
applicable to the Senior Credit Facility and the Hedging Obligations. A distribution made under
this Article 18 to the Lenders and the Counterparties which otherwise would have been made to
Noteholders is not, as between such Note Guarantor and Noteholders, a payment by such Note
Guarantor on the Senior Credit Facility and the Hedging Obligations.

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          Section 18.07. Relative Rights. This Article 18 defines the relative rights of Noteholders
and the Lenders and the Counterparties and their respective Representatives. Nothing in this
Indenture shall:

          (a) impair, as between a Note Guarantor and Noteholders, the obligation of a Note Guarantor
which is absolute and unconditional, to make payments with respect to the Guaranteed Obligations to
the extent set forth in Article 17; or

          (b) prevent the Trustee or any Noteholder from exercising its available remedies upon a
default by a Note Guarantor under its obligations with respect to the Guaranteed Obligations,
subject to the rights of the Lenders and the Counterparties and their Representatives to receive
distributions otherwise payable to Noteholders.

          Section 18.08. Subordination May Not Be Impaired by a Note Guarantor. No right of the
Administrative Agent, any Lender or Counterparty to enforce the subordination of the obligations of
such Note Guarantor hereunder shall be impaired by any act or failure to act by such Note Guarantor
or by its failure to comply with this Indenture.

          Section 18.09. Rights of Trustee and Paying Agent. Notwithstanding Section 18.03, the Trustee
or the Paying Agent may continue to make payments on the Notes and shall not be charged with
knowledge of the existence of facts that would prohibit the making of any such payments unless, not
less than two Business Days prior to the date of such payment, a Responsible Officer of the Trustee
receives written notice satisfactory to it that payments may not be made under this Article 18. A
Note Guarantor, the Note Registrar or co-registrar, the Paying Agent, the Administrative Agent, a
Representative of the Lenders, any such Lender or Counterparty may give the notice.

          The Trustee in its individual or any other capacity may be a Lender or a Counterparty with the
same rights it would have if it were not Trustee. The Note Registrar and co-registrar and the
Paying Agent may do the same with like rights. The Trustee shall be entitled to all the rights set
forth in this Article 18 with respect to the Senior Credit Facility and the Hedging Obligations
which may at any time be held by it, to the same extent as any other Lender or counterparty to a
Hedging Obligation; and nothing in Article 8 shall deprive the Trustee of any of its rights as such
holder. Nothing in this Article 18 shall apply to claims of, or payments to, the Trustee under or
pursuant to Section 8.06 or any other Section of this Indenture.

          Section 18.10. Distribution or Notice to Representative. Whenever a distribution is to be
made or a notice given to the Lenders and the Counterparties, the distribution may be made and the
notice given to their Representative (if any).

          Section 18.11. Article 18 Not to Prevent Events of Default or Limit Right to Accelerate. The
failure of a Note Guarantor to make a payment on any of the Guaranteed Obligations by reason of any
provision in this Article 18 shall not be construed as preventing the occurrence of a default by
such Note Guarantor under such obligations. Nothing in this Article 18 shall have any effect on
the right of the Noteholders or the Trustee to make a demand for payment on a Note Guarantor
pursuant to Article 17.

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          Section 18.12. Trustee Entitled to Rely. Upon any payment or distribution pursuant to this
Article 18, the Trustee and the Noteholders shall be entitled to rely (a) upon any order or decree
of a court of competent jurisdiction in which any proceedings of the nature referred to in Section
18.02 are pending, (b) upon a certificate of the liquidating trustee or agent or other Person
making such payment or distribution to the Trustee or to the Noteholders or (c) upon the
Representatives for the Lenders and the Counterparties for the purpose of ascertaining the Persons
entitled to participate in such payment or distribution, the Lenders and the Counterparties and
other holders of Indebtedness of a Note Guarantor, the amount thereof or payable thereon, the
amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this
Article 18. In the event that the Trustee determines, in good faith, that evidence is required
with respect to the right of any Person as a Lender or a Counterparty to participate in any payment
or distribution pursuant to this Article 18, the Trustee may request such Person to furnish
evidence to the reasonable satisfaction of the Trustee as to the amounts owing to such Person under
the Senior Credit Facility or Hedging Obligation, the extent to which such Person is entitled to
participate in such payment or distribution and other facts pertinent to the rights of such Person
under this Article 18, and, if such evidence is not furnished, the Trustee may defer any payment to
such Person pending judicial determination as to the right of such Person to receive such payment.
The provisions of Sections 8.01 and 8.02 shall be applicable to all actions or omissions of actions
by the Trustee pursuant to this Article 18.

          Section 18.13. Trustee to Effectuate Subordination. Each Noteholder by accepting a Note
authorizes and directs the Trustee on his or her behalf to take such action as may be necessary or
appropriate to acknowledge or effectuate the subordination between the Noteholders and the Lenders
and the Counterparties as provided in this Article 18 and appoints the Trustee as attorney-in-fact
for any and all such purposes. If the Trustee does not file a proper proof of claim or proof of
debt in the form required in any proceeding referred to in Section 18.02 at least 30 days prior to
the expiration of the time to file such claims the Representatives of the Lenders and the
Counterparties are hereby authorized to file an appropriate proof in any such proceeding.

          Section 18.14. Trustee Not Fiduciary for Lenders or Counterparties. The Trustee shall not be
deemed to owe any fiduciary duty to the Lenders and the Counterparties and shall not be liable to
any such holders if it shall mistakenly pay over or distribute to Noteholders or the relevant Note
Guarantor or any other Person, money or assets to which any Lenders and the Counterparties shall be
entitled by virtue of this Article 18 or otherwise.

          Section 18.15. Reliance by Lenders and Counterparties on Subordination Provisions. Each
Noteholder by accepting a Note acknowledges and agrees that the foregoing subordination provisions
are, and are intended to be, an inducement and a consideration to each Lender and Counterparty,
whether Indebtedness was created or acquired before or after the issuance of the Notes, to acquire
and continue to hold, or to continue to hold, such Indebtedness and such Lender and Counterparty
shall be deemed conclusively to have relied on such subordination provisions in acquiring and
continuing to hold, or in continuing to hold, such Indebtedness.

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ARTICLE 19

REPURCHASE OF NOTES AT OPTION OF NOTEHOLDERS

          Section 19.01. [Reserved].

          Section 19.02. Repurchase at Option of Noteholders upon a Fundamental Change. (a) If there
shall occur a Fundamental Change at any time prior to the Maturity Date, then each Noteholder shall
have the right, at such Noteholder’s option, to require the Company to repurchase for cash all of
such Noteholder’s Notes, or any portion thereof that is an integral multiple of $1,000 principal
amount, on the date (the “Fundamental Change Repurchase Date”) specified by the Company that is not
less than 20 Business Days and not more than 35 Business Days after the date on which the Company
provides the Fundamental Change Company Notice at a cash repurchase price equal to 100% of the
principal amount thereof, together with accrued and unpaid interest, thereon to, but excluding, the
Fundamental Change Repurchase Date (the “Fundamental Change Repurchase Price”), unless the
Fundamental Change Repurchase Date is after an Interest Record Date and on or prior to the related
Interest Payment Date, in which case interest accrued to the Interest Payment Date will be paid to
Noteholders as of the preceding Interest Record Date and the Fundamental Change Repurchase Price
payable to the Noteholder surrendering the Note for repurchase pursuant to this Article 19 shall be
equal to the principal amount of Notes subject to repurchase. Repurchases of Notes under this
Section 19.02 shall be made, at the option of the Noteholder thereof, upon:

          (i) delivery to the Paying Agent by a Noteholder of a duly completed notice (the
“Fundamental Change Repurchase Notice”) in the form set forth on the reverse of the Note on
or prior to 5:00 p.m., New York City time, of the Business Day immediately preceding the
Fundamental Change Repurchase Date (the “Fundamental Change Expiration Time”); and

          (ii) delivery or book-entry transfer of the Notes to the Paying Agent at any time after
delivery of the Fundamental Change Repurchase Notice (together with all necessary
endorsements) at the Corporate Trust Office of the Paying Agent in The Borough of Manhattan,
such delivery being a condition to receipt by the holder of the Fundamental Change
Repurchase Price therefor; provided that such Fundamental Change Repurchase Price shall be
so paid pursuant to this Section 19.02 only if the Note so delivered to the Paying Agent
shall conform in all respects to the description thereof in the related Fundamental Change
Repurchase Notice.

          The Fundamental Change Repurchase Notice shall state:

          (A) if certificated, the certificate numbers of Notes to be delivered for
repurchase;

          (B) the portion of the principal amount of Notes to be repurchased, which must
be $1,000 or an integral multiple thereof; and

          (C) that the Notes are to be repurchased by the Company pursuant to the
applicable provisions of the Notes and the Indenture;

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provided, however, that if the Notes are not in certificated form, the Fundamental Change
Repurchase Notice must comply with appropriate Depositary procedures.

          Any repurchase by the Company contemplated pursuant to the provisions of this Section 19.02
shall be consummated by the payment of the Fundamental Change Repurchase Price on the later of the
Fundamental Change Repurchase Date and the time of the book-entry transfer or delivery of the Note
as described in Section 19.04(a).

          Notwithstanding anything herein to the contrary, any Noteholder delivering to the Paying Agent
the Fundamental Change Repurchase Notice contemplated by this Section 19.02 shall have the right to
withdraw, in whole or in part, such Fundamental Change Repurchase Notice at any time prior to the
Fundamental Change Expiration Time by delivery of a written notice of withdrawal to the Paying
Agent in accordance with Section 19.03 below.

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

          (b) As promptly as possible, but in no event later than the twentieth day after the occurrence
of the effective date of a Fundamental Change, the Company shall mail or cause to be mailed to all
Noteholders of record a notice (the “Fundamental Change Company Notice”) of the occurrence of the
effective date of the Fundamental Change and of the repurchase right at the option of the
Noteholders arising as a result thereof. Such mailing shall be by first class mail. The Company
shall also deliver a copy of the Fundamental Change Company Notice to the Trustee, the Paying Agent
and the Conversion Agent within five Business Days after the effective date of the Fundamental
Change. Each Fundamental Change Company Notice shall specify:

          (i) the events causing the Fundamental Change;

          (ii) the effective date of the Fundamental Change;

          (iii) the last date on which a Noteholder may exercise the repurchase right pursuant to
this Article 16;

          (iv) the Fundamental Change Repurchase Price;

          (v) the Fundamental Change Repurchase Date;

          (vi) the name and address of the Paying Agent and the Conversion Agent, if applicable;

          (vii) if applicable, the applicable Conversion Rate, any adjustments to the applicable
Conversion Rate;

          (viii) if applicable, that the Notes with respect to which a Fundamental Change
Repurchase Notice has been delivered by a Noteholder may be converted only if the Noteholder
withdraws the Fundamental Change Repurchase Notice in accordance with the terms of the
Indenture;

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          (ix) that the Noteholder must exercise the repurchase right on or prior to the
Fundamental Change Expiration Time;

          (x) that the Noteholder shall have the right to withdraw any Notes surrendered prior to
the Fundamental Change Expiration Time; and

          (xi) the procedures that Noteholders must follow to require the Company to repurchase
their Notes.

          Simultaneously with providing the Fundamental Change Company Notice, the Company shall publish
a notice containing the information provided in the Fundamental Change Company Notice on the
Company’s website or through such other public medium as the Company may use at that time.

          No failure of the Company to give the foregoing notices and no defect therein shall limit the
Noteholders’ repurchase rights or affect the validity of the proceedings for the repurchase of the
Notes pursuant to this Section 19.02.

          (c) Notwithstanding the foregoing, no Notes may be repurchased by the Company at the option of
the Noteholders upon a Fundamental Change if there has occurred and is continuing an Event of
Default with respect to the Notes, other than a Default in payment of the Fundamental Change
Repurchase Price with respect to the Notes.

          (d) In connection with any purchase offer, the Company will:

          (i) comply with the provisions of Rule 13e-4, Rule 14e-1 and any other tender offer
rules under the Exchange Act, if required under the Exchange Act,

          (ii) file a Schedule TO or any successor or similar schedule, if required under the
Exchange Act, and

          (iii) otherwise comply with all federal and state securities laws in connection with
any offer by the Company to purchase the Notes.

          Section 19.03. Withdrawal of Fundamental Change Repurchase Notice. (a) A Fundamental Change
Repurchase Notice may be withdrawn by means of a written notice of withdrawal delivered to the
Corporate Trust Office of the Paying Agent in accordance with this Section 19.03 at any time prior
to Fundamental Change Expiration Time, specifying:

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

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

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          (iii) the principal amount, if any, of such Note that remains subject to the original
Fundamental Change Repurchase Notice, which portion must be in principal amounts of $1,000
or an integral multiple of $1,000;

provided, however, that if the Notes are not in certificated form, the notice must comply with
appropriate procedures of the Depositary.

          Section 19.04. Deposit of Fundamental Change Repurchase Price. (a) The Company will deposit
with the Trustee (or other Paying Agent appointed by the Company, or if the Company is acting as
its own Paying Agent, set aside, segregate and hold in trust as provided in Section 5.04) on or
prior to 11:00 a.m., New York City time, on the Fundamental Change Repurchase Date an amount of
money sufficient to repurchase on the Fundamental Change Repurchase Date all of the Notes to be
repurchased at the appropriate Fundamental Change Repurchase Price. Subject to receipt of funds
and/or Notes by the Trustee (or other Paying Agent appointed by the Company), payment for Notes
surrendered for repurchase (and not withdrawn prior to the Fundamental Change Expiration Time) will
be made on the later of:

(i) the Fundamental Change Repurchase Date with respect to such Note (provided the
Noteholder has satisfied the conditions in Section 19.02) and

(ii) the time of book-entry transfer or the delivery of such Note to the Trustee (or other
Paying Agent appointed by the Company) by the Noteholder thereof in the manner required by
Section 19.02 by mailing checks for the amount payable to the Noteholders of such Notes
entitled thereto as they shall appear in the Note Register, provided, however, that payments
to the Depositary shall be made by wire transfer of immediately available funds to the
account of the Depositary or its nominee. The Trustee shall, promptly after such payment
and upon written demand by the Company, return to the Company any funds in excess of the
Fundamental Change Repurchase Price.

          (b) If by 11:00 a.m. New York City time, on the Fundamental Change Repurchase Date, the
Trustee (or other Paying Agent appointed by the Company) holds money sufficient to make payment on
the Fundamental Change Repurchase Date on all the Notes or portions thereof that are to be
repurchased as a result of the corresponding Fundamental Change, then:

(i) such Notes will cease to be outstanding and interest will cease to accrue on such Notes;
and

(ii) all other rights of the Noteholders of such Notes will terminate (other than the right
to receive the Fundamental Change Repurchase Price, and previously accrued but unpaid
interest upon delivery of the Notes),

in each case whether or not book-entry transfer of the Notes has been made or the Notes have been
delivered to the Trustee or Paying Agent.

          (c) Upon surrender of a Note that is to be repurchased in part pursuant to 16.02, the Company
shall execute and the Trustee shall authenticate and deliver to the holder a

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new Note in an authorized denomination equal in principal amount to the unrepurchased portion
of the Note surrendered.

ARTICLE 20

MISCELLANEOUS PROVISIONS

          Section 20.01. Provisions Binding on Company’s Successors. All the covenants, stipulations,
promises and agreements of the Company contained in this Indenture shall bind its successors and
assigns whether so expressed or not.

          Section 20.02. Official Acts by Successor Corporation. Any act or proceeding by any provision
of this Indenture authorized or required to be done or performed by any board, committee or officer
of the Company shall and may be done and performed with like force and effect by the like board,
committee or officer of any corporation or other entity that shall at the time be the lawful sole
successor of the Company.

          Section 20.03. Addresses for Notices, Etc. Any notice or demand that by any provision of this
Indenture is required or permitted to be given or served by the Trustee or by the Noteholders on
the Company shall be deemed to have been sufficiently given or made, for all purposes if given or
served by being deposited postage prepaid by registered or certified mail in a post office letter
box addressed (until another address is filed by the Company with the Trustee) to Alaska
Communications Systems Group, Inc., 600 Telephone Avenue, Anchorage, Alaska 99503-6091, Attention:
General Counsel. Any notice, direction, request or demand hereunder to or upon the Trustee shall
be deemed to have been sufficiently given or made, for all purposes, if given or served by being
deposited postage prepaid by registered or certified mail in a post office letter box addressed to
the Corporate Trust Office.

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

          Any notice or communication mailed to a Noteholder shall be mailed to it by first class mail,
postage prepaid, at its address as it appears on the Note Register and shall be sufficiently given
to it if so mailed within the time prescribed.

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

          The Trustee agrees to accept and act upon instructions or directions pursuant to this
Indenture sent by unsecured e-mail, pdf, facsimile transmission or other similar unsecured
electronic methods, provided, however, that the Trustee shall have received an incumbency
certificate listing persons designated to give such instructions or directions and containing
specimen signatures of such designated persons, which such incumbency certificate shall be amended
and replaced whenever a person is to be added or deleted from the listing. If the Company elects to
give the Trustee e-mail or facsimile instructions (or instructions by a similar electronic method)
and the Trustee acts upon such instructions, the Trustee’s reasonable understanding of such
instructions shall be deemed controlling. The Trustee shall not be liable for any losses, costs or
expenses arising directly or indirectly from the Trustee’s reliance upon

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and compliance with such instructions notwithstanding such instructions. The Company agrees to
assume all risks arising out of the use of such electronic methods to submit instructions and
directions to the Trustee, including without limitation, the risk of the Trustee acting on
unauthorized instructions, and the risk or interception and misuse by third parties.

          In case by reason of the suspension of regular mail service or by reason of any other cause it
shall be impracticable to give such notice to holders by mail, then such notification as shall be
made with the approval of the Trustee shall constitute a sufficient notification for every purpose
hereunder.

          Section 20.04. Governing Law. THIS INDENTURE, THE NOTES AND THE NOTE GUARANTEES SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

          Section 20.05. Evidence of Compliance with Conditions Precedent; Certificates and Opinions of
Counsel to Trustee. Upon any application or demand by the Company to the Trustee to take any
action under any of the provisions of this Indenture, other than in connection with the actions
referred to in Section 2.05, the Company shall furnish to the Trustee an Officers’ Certificate and
an Opinion of Counsel stating that such action is permitted by the terms of this Indenture and that
all conditions precedent thereunder in connection with the taking of such action have been complied
with.

          Each certificate provided for by or on behalf of the Company in this Indenture and delivered
to the Trustee with respect to compliance with this Indenture (other than the Officers’
Certificates provided for in Section 5.08) shall include (a) a statement that the Person making
such certificate is familiar with the requested action and this Indenture; (b) a brief statement as
to the nature and scope of the examination or investigation upon which the statement contained in
such certificate is based; (c) a statement that, in the judgment of such person, he or she has made
such examination or investigation as is necessary to enable him or her to express an informed
judgment as to whether or not such action is permitted by this Indenture and that all conditions
precedent thereunder in connection with the taking of such action have been complied with; and (d)
a statement as to whether or not, in the judgment of such Person, such action is permitted by this
Indenture.

          Notwithstanding anything to the contrary in this Section 20.05, if any provision in this
Indenture specifically provides that the Trustee shall or may receive an Opinion of Counsel in
connection with any action to be taken by the Trustee or the Company hereunder, the Trustee shall
be entitled to, or entitled to request, such Opinion of Counsel.

          Section 20.06. Legal Holidays. In any case where any Interest Payment Date, Fundamental
Change Repurchase Date, Conversion Date or Maturity Date is not be a Business Day, then any action
to be taken on such date need not be taken on such date, but may be taken on the next succeeding
Business Day with the same force and effect as if taken on such date, and no interest shall accrue
for the period from and after such date.

          Section 20.07. No Security Interest Created. Nothing in this Indenture or in the Notes,
expressed or implied, shall be construed to constitute a security interest under the

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Uniform Commercial Code or similar legislation, as now or hereafter enacted and in effect, in
any jurisdiction.

          Section 20.08. Trust Indenture Act. This Indenture is hereby made subject to, and shall be
governed by, the provisions of the Trust Indenture Act required to be part of and to govern
indentures qualified under the Trust Indenture Act upon such qualification regardless of whether
this Indenture shall ever be so qualified; provided that this Section 20.08 shall not require that
this Indenture or the Trustee be qualified under the Trust Indenture Act prior to the time such
qualification is in fact required under the terms of the Trust Indenture Act, nor shall it
constitute any admission or acknowledgment by any party hereto that any such qualification is
required prior to the time such qualification is in fact required under the terms of the Trust
Indenture Act. If any provision hereof limits, qualifies or conflicts with another provision
hereof that is required to be included in an indenture qualified under the Trust Indenture Act,
such required provision shall control.

          Section 20.09. Benefits of Indenture. Nothing in this Indenture or in the Notes, expressed or
implied, shall give to any Person, other than the parties hereto, any Paying Agent, any Conversion
Agent, any authenticating agent, any Note Registrar and their successors hereunder or the
Noteholders, any benefit or any legal or equitable right, remedy or claim under this Indenture.

          Section 20.10. Table of Contents, Headings, Etc. The table of contents and the titles 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.

          Section 20.11. Authenticating Agent. The Trustee may appoint an authenticating agent that
shall be authorized to act on its behalf and subject to its direction in the authentication and
delivery of Notes in connection with the original issuance thereof and transfers and exchanges of
Notes hereunder, including under Section 2.05, Section 2.06, Section 2.07, Section 2.08, Section
11.04 and Section 19.04 as fully to all intents and purposes as though the authenticating agent had
been expressly authorized by this Indenture and those Sections to authenticate and deliver Notes.
For all purposes of this Indenture, the authentication and delivery of Notes by the authenticating
agent shall be deemed to be authentication and delivery of such Notes “by the Trustee” and a
certificate of authentication executed on behalf of the Trustee by an authenticating agent shall be
deemed to satisfy any requirement hereunder or in the Notes for the Trustee’s certificate of
authentication. Such authenticating agent shall at all times be a Person eligible to serve as
trustee hereunder pursuant to Section 8.09.

          Any corporation or other entity into which any authenticating agent may be merged or converted
or with which it may be consolidated, or any corporation or other entity resulting from any merger,
consolidation or conversion to which any authenticating agent shall be a party, or any corporation
or other entity succeeding to the corporate trust business of any authenticating agent, shall be
the successor of the authenticating agent hereunder, if such successor corporation or other entity
is otherwise eligible under this Section, without the execution or filing of any paper or any
further act on the part of the parties hereto or the authenticating agent or such successor
corporation or other entity.

102

 

          Any authenticating agent may at any time resign by giving written notice of resignation to the
Trustee and to the Company. The Trustee may at any time terminate the agency of any authenticating
agent by giving written notice of termination to such authenticating agent and to the Company.
Upon receiving such a notice of resignation or upon such a termination, or in case at any time any
authenticating agent shall cease to be eligible under this Section, the Trustee may appoint a
successor authenticating agent (which may be the Trustee), shall give written notice of such
appointment to the Company and shall mail notice of such appointment to all Noteholders as the
names and addresses of such holders appear on the Note Register.

          The Company agrees to pay to the authenticating agent from time to time reasonable
compensation for its services although the Company may terminate the authenticating agent, if it
determines such agent’s fees to be unreasonable.

          The provisions of Section 8.02, Section 8.03, Section 8.04, Section 9.03 and this Section
20.11 shall be applicable to any authenticating agent.

          If an authenticating agent is appointed pursuant to this Section, the Notes may have endorsed
thereon, in addition to the Trustee’s certificate of authentication, an alternative certificate of
authentication in the following form:

__________________________,

as Authenticating Agent, certifies that this is one of the Notes described in the within-named Indenture.

By: ____________________

Authorized Officer

          Section 20.12. Execution in Counterparts. This Indenture may be executed in any number of
counterparts, each of which shall be an original, but such counterparts shall together constitute
but one and the same instrument.

          Section 20.13. Severability. In the event any provision of this Indenture or in the Notes
shall be invalid, illegal or unenforceable, then (to the extent permitted by law) the validity,
legality or enforceability of the remaining provisions shall not in any way be affected or
impaired.

          Section 20.14. Waiver of Jury Trial. EACH OF THE COMPANY, EACH GUARANTOR AND THE TRUSTEE
HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO
TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES, THE
NOTE GUARANTEES OR THE TRANSACTION CONTEMPLATED HEREBY.

          Section 20.15. Force Majeure. In no event shall the Trustee be responsible or liable for any
failure or delay in the performance of its obligations hereunder arising out of or caused by,
directly or indirectly, forces beyond its control, including, without limitation, strikes, work
stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or

103

 

natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities,
communications or computer (software and hardware) services; it being understood that the Trustee
shall use reasonable efforts that are consistent with accepted practices in the banking industry to
resume performance as soon as practicable under the circumstances.

          Section 20.16. No Optional Redemption; No Defeasance. The Notes shall not be redeemable by the
Company prior to the Maturity Date. The Notes shall not be subject to defeasance.

          Section 20.17. Calculations. The Company shall be responsible for making all calculations
called for under the Notes and for monitoring any Stock Price or measurement or observation period.
The calculations include, but are not limited to, determinations of the Last Reported Sale Price of
the Common Stock, the VWAP of the Common Stock, accrued interest payable on the Notes, the
Conversion Rate, the Conversion Price, the Daily Conversion Values and the additional shares of the
Company’s Common Stock resulting from the adjustments pursuant to Section 15.02(e). The Company or
its agents shall make all these calculations in good faith and, absent manifest error, such
calculations shall be final and binding on Noteholders. The Company shall provide a schedule of
these calculations to each of the Trustee and the Conversion Agent, and each of the Trustee and
Conversion Agent is entitled to rely upon the accuracy of the Company’s calculations without
independent verification. The Trustee shall forward these calculations to any Noteholder upon the
request of such Noteholder.

104

 

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

	 	 	 	 	 
	 	ALASKA COMMUNICATIONS 
SYSTEMS GROUP, INC.

 	 
	 	By:  	/s/ Anand Vadapalli
 	 
	 	 	Name:  	Anand Vadapalli 	 
	 	 	Title:  	Chief Executive Officer
and President 	 
	 

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

 	 
	 	By:  	/s/ John A. (Alex) Briffett
 	 
	 	 	Name:  	John A. (Alex) Briffett 	 
	 	 	Title:  	Authorized Signatory 	 
	 

[Signature Page to Indenture]

 

 

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

	 	 	 	 	 
	 	ALASKA COMMUNICATIONS SYSTEMS 
HOLDINGS, INC

..

ACS OF ALASKA, INC.

ACS OF THE NORTHLAND, INC.

ACS OF FAIRBANKS, INC.

ACS OF ANCHORAGE, INC.

ACS WIRELESS, INC.

ACS LONG DISTANCE, INC.

ACS INTERNET, INC.

ACS INFOSOURCE, INC.

ACS MESSAGING, INC.

ACS SERVICES, INC.

ACS CABLE SYSTEMS, INC.

CREST COMMUNICATIONS CORPORATION

WCI CABLE, INC.

ALASKA NORTHSTAR COMMUNICATIONS, LLC

WCIC HILLSBORO, LLC

WCI LIGHTPOINT LLC

NORTHERN LIGHTS HOLDINGS, INC.

WORLD NET COMMUNICATIONS, INC.

ALASKA FIBER STAR, LLC

ALASKA COMMUNICATIONS LLC

ALASKA FIBER STAR CORPORATION

 	 
	 	By:  	/s/ Anand Vadapalli
 	 
	 	 	Name:  	Anand Vadapalli 	 
	 	 	Title:  	Chief Executive Officer
and President 	 
	 

[Signature Page to Indenture]

 

 

EXHIBIT A

[FORM OF FACE OF NOTE]

[Legend for Global Notes]

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

[Legend for Notes that are Restricted Securities]

[THIS SECURITY AND THE COMMON STOCK, IF ANY, ISSUABLE UPON CONVERSION OF THIS SECURITY HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR
THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS SECURITY NOR ANY
INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH
TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION.

THE HOLDER OF THIS SECURITY, BY ACQUISITION HEREOF OR A BENEFICIAL INTEREST HEREIN, (1)
REPRESENTS THAT IT IS A QUALIFIED INSTITITUTIONAL BUYER AS DEFINED UNDER RULE 144A UNDER THE
SECURITIES ACT (“RULE 144A”); (2) AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR
ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES THAT IT WILL NOT, PRIOR TO THE DATE (THE
“RESALE RESTRICTION TERMINATION DATE”) ONE YEAR, OR SUCH SHORTER PERIOD OF TIME AS PERMITTED
BY RULE 144 UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION THEREUNDER, AFTER THE LAST
DATE OF ORIGINAL ISSUANCE OF THE 6.25% CONVERTIBLE NOTES DUE 2018 OF ALASKA COMMUNICATIONS
SYSTEMS GROUP, INC. (THE “COMPANY”) RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED
HEREBY OR ANY COMMON STOCK THAT MAY BE ISSUABLE UPON CONVERSION OF SUCH SECURITY EXCEPT (A)
TO THE COMPANY OR ANY AFFILIATE THEREOF, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS

A-1

 

BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT AND WHICH CONTINUES TO BE EFFECTIVE AT THE
TIME OF SUCH TRANSFER, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL
BUYER” AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A OR (C) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S RIGHT PRIOR
TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (2)(C) TO REQUIRE THE DELIVERY OF AN
OPINION OF COUNSEL, CERTIFICATION AND/ OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM;
AND (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THE SECURITY EVIDENCED HEREBY IS
TRANSFERRED (OTHER THAN PURSUANT TO CLAUSE 2(C)) A NOTICE OF THIS LEGEND. THIS LEGEND WILL
BE REMOVED BY THE COMPANY AFTER THE RESALE RESTRICTION TERMINATION DATE.

BY ITS ACQUISITION OF THIS SECURITY, THE HOLDER THEREOF WILL BE DEEMED TO HAVE REPRESENTED
AND WARRANTED THAT EITHER (1) NO PORTION OF THE ASSETS USED BY SUCH HOLDER TO ACQUIRE OR
HOLD THIS SECURITY CONSTITUTES THE ASSETS OF AN EMPLOYEE BENEFIT PLAN THAT IS SUBJECT TO
TITLE I OF THE U.S. EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”),
OF A PLAN, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER ARRANGEMENT THAT IS SUBJECT TO SECTION
4975 OF THE U.S. INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) OR PROVISIONS UNDER
ANY OTHER FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE SIMILAR TO
SUCH PROVISIONS OF ERISA OR THE CODE (“SIMILAR LAWS”), OR OF AN ENTITY WHOSE UNDERLYING
ASSETS ARE CONSIDERED TO INCLUDE “PLAN ASSETS” OF ANY SUCH PLAN, ACCOUNT OR ARRANGEMENT, OR
(2) THE ACQUISITION, HOLDING AND, IF APPLICABLE, CONVERSION OF THIS SECURITY WILL NOT
CONSTITUTE A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF
THE CODE OR A SIMILAR VIOLATION UNDER ANY APPLICABLE SIMILAR LAWS.]1

 

			
	1	 	This legend shall be deemed removed from the
face of this Note without further action of the Company, the Trustee or the
Noteholders at such time as the Company notifies the Trustee to remove such
legend pursuant to Section 2.06(d) of the Indenture.

A-2

 

ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.

6.25% Convertible Note due 2018

			
	 	 	 
	No. [_____]
	 	$[_________]

CUSIP No.: 01167P AD32

ISIN No.: US01167PAD333

     Alaska Communications Systems Group, Inc., a corporation duly organized and validly existing
under the laws of the State of Delaware (herein called the “Company,” which term includes any
successor corporation or other entity under the Indenture referred to on the reverse hereof), for
value received hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of
Dollars (which amount may from time to time be increased or decreased to such
other principal amounts as reflected in the books and records of the Trustee and the Depositary on
May 1, 2018, and interest thereon as set forth below and Supplementary Interest and Rule 144
Additional Interest in the manner, at the rates and to the Persons set forth in the Indenture.

     This Note shall bear interest at the rate of 6.25% per year (subject to increase, by an amount
not to exceed 0.50%, pursuant to Sections 5.09 and 7.01 of the Indenture) from May 10, 2011, or
from the most recent date to which interest had been paid or provided for to, but excluding, the
next scheduled Interest Payment Date. The Final Interest Payment Date shall be May 1, 2018.
Interest is payable semi-annually in arrears on each May 1 and November 1, commencing November 1,
2011, to holders of record at 5:00 p.m., New York City time on the preceding April 15 and October
15 (whether or not such day is a Business Day), respectively.

     Payment of the principal of and accrued and unpaid interest, Supplementary Interest, if any,
and Rule 144 Additional Interest, if any, on this Note shall be made at the office or agency of the
Company maintained by the Company for such purposes in The Borough of Manhattan, City of New York,
which shall initially be one such office of the Paying Agent at 101 Barclay Street, Floor 8 West,
New York, New York 10286, Attention: Corporate Trust Administration. The Company shall pay
interest:

     (a) on any Notes in certificated form by check mailed to the address of the
Person entitled thereto as it appears in the Note Register or, if such certified
Notes held by such Person have an aggregate principal amount of more than $1,000,000
upon written application by such Person to the Trustee and Paying Agent (if
different from the Trustee) not later than the relevant Interest Record Date, by
wire transfer in immediately available funds to such Person’s account within the
United States (application shall remain in effect until the Noteholder

 

			
	2	 	At such time as the Company notifies the
Trustee to remove such legend pursuant to Section 2.06(d) of the Indenture, the
CUSIP number for this note shall be deemed to be CUSIP No. 01167P AE1.
	 
	3	 	At such time as the Company notifies the
Trustee to remove such legend pursuant to Section 2.06(d) of the Indenture, the
ISIN number for this note shall be deemed to be ISIN No. US01167PAE16.

A-3

 

notifies the Trustee and Paying Agent to the contrary); or

     (b) on any Global Note by wire transfer of immediately available funds to the
account of the Depositary or its nominee.

     Reference is made to the further provisions of this Note set forth on the reverse hereof,
including, without limitation, provisions giving the holder of this Note the right to convert this
Note into cash, shares of Common Stock of the Company or a combination of cash and shares of Common
Stock, as applicable, on the terms and subject to the limitations set forth in the Indenture. Such
further provisions shall for all purposes have the same effect as though fully set forth at this
place.

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

     This Note shall not be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been manually signed by the Trustee or a duly authorized
authenticating agent under the Indenture.

[Remainder of page intentionally left blank]

A-4

 

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

	 	 	 	 	 
	 	ALASKA COMMUNICATIONS SYSTEMS 
GROUP, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Dated:

	 	 	 	 	 
	 	TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

as Trustee, certifies that this is one of the Notes described

in the within-named Indenture.

 	 
	 	By:  	 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 

A-5

 

[FORM OF REVERSE OF NOTE]

ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.

6.25% Convertible Note due 2018

     This Note is one of a duly authorized issue of Notes of the Company, designated as its 6.25%
Convertible Notes due 2018 (herein called the “Notes”), initially limited to the aggregate
principal amount of $120,000,000, all issued or to be issued under and pursuant to an Indenture
dated as of May 10, 2011 (herein called the “Indenture”), among the Company, the Guarantors named
therein and The Bank of New York Mellon Trust Company, N.A. (herein called the “Trustee”), to which
Indenture and all indentures supplemental thereto reference is hereby made for a description of the
rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the
Company, the Guarantors and the Noteholders. Additional Notes may be issued in an unlimited
aggregate principal amount, subject to certain conditions specified in the Indenture.

     In case an Event of Default, as defined in the Indenture, shall have occurred and be
continuing, the principal of and interest, including Supplementary Interest, if any, and Rule 144
Additional Interest, if any, on all Notes may be declared, by either the Trustee or Noteholders of
not less than 25% in aggregate principal amount of Notes then outstanding, and upon said
declaration shall become, due and payable, in the manner, with the effect and subject to the
conditions and certain exceptions set forth in the Indenture; provided that upon the occurrence of
certain Events of Default under the Indenture, the Notes shall automatically become due and
payable.

     Subject to the terms and conditions of the Indenture, the Company will make all payments and
deliveries in respect of the Fundamental Change Repurchase Price and the principal amount on the
Maturity Date, as the case may be, to the holder who surrenders a Note to a Paying Agent to collect
such payments in respect of the Note. The Company will pay cash amounts in money of the United
States that at the time of payment is legal tender for payment of public and private debts.

     The Indenture contains provisions permitting the Company and the Trustee in certain
circumstances, without the consent of the Noteholders, and in other circumstances, with the consent
of the holders of not less than a majority in aggregate principal amount of the Notes at the time
outstanding, and in other circumstances with the consent of each Noteholder affected thereby,
evidenced as in the Indenture provided, to execute supplemental indentures modifying the terms of
the Indenture and the Notes as described therein. It is also provided in the Indenture that,
subject to certain exceptions, the holders of a majority in aggregate principal amount of the Notes
at the time outstanding may on behalf of the holders of all of the Notes waive any past Default or
Event of Default under the Indenture and its consequences.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the
principal of and accrued and unpaid interest, Supplementary Interest, if any, and Rule 144
Additional Interest, if any, on this Note at the place, at the respective times, at the rate and in
the lawful money herein prescribed.

B-1

 

     The Notes are issuable in registered form without coupons in denominations of $1,000 principal
amount and integral multiples thereof. At the office or agency of the Company referred to on the
face hereof, and in the manner and subject to the limitations provided in the Indenture, Notes may
be exchanged for a like aggregate principal amount of Notes of other authorized denominations,
without payment of any service charge but, if required by the Company or Trustee, with payment of a
sum sufficient to cover any tax, assessments or other governmental charges that may be imposed in
connection therewith as a result of the name of the Noteholder of the new Notes issued upon such
exchange of Notes being different from the name of the Noteholder of the old Notes surrendered for
such exchange.

     The Notes are not subject to redemption through the operation of any sinking fund or
otherwise.

     Upon the occurrence of a Fundamental Change, the holder has the right, at such holder’s
option, to require the Company to repurchase for cash all of such holder’s Notes or any portion
thereof (in principal amounts of $1,000 or integral multiples thereof) on the Fundamental Change
Repurchase Date at a price equal to the Fundamental Change Repurchase Price.

     Subject to the provisions of the Indenture, the holder hereof has the right, at its option,
during certain periods and upon the occurrence of certain conditions specified in the Indenture,
prior to 5:00 p.m., New York City time on the second Scheduled Trading Day immediately preceding
the Maturity Date, to convert any Notes or portion thereof that is $1,000 or an integral multiple
thereof, into cash, shares of Common Stock or a combination of cash and shares of Common Stock, as
applicable, at a Conversion Rate specified in the Indenture, as adjusted from time to time as
provided in the Indenture.

     Terms used in this Note and defined in the Indenture are used herein as therein defined.

B-2

 

ABBREVIATIONS

The following abbreviations, when used in the inscription of the face of this Note, shall be
construed as though they were written out in full according to applicable laws or regulations:

	 	 	 	 	 

	TEN COM — as tenants in common

	 	UNIF GIFT MIN ACT	 	 
	 
	 	 	 	 
	 

	 	 	 	Custodian
	 

	 	 	 	 
	 

	 	(Cust)	 	 
	 
	 	 	 	 
	TEN ENT — as tenants by the entireties
	 	 	 	 
	 
	 	 	 	 
	 

	 	 

(Minor)
	 	 

			
	JT TEN — as joint tenants with right of

survivorship and not as tenants in common	 	Uniform Gifts to Minors Act ________ (State)

Additional abbreviations may also be used though not in the above list.

B-3

 

EXHIBIT B

[FORM OF NOTICE OF CONVERSION]

To: ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.

     The undersigned registered owner of this Note hereby exercises the option to convert Note, or
the portion hereof (that is $1,000 principal amount or an integral multiple thereof) below
designated, into cash, shares of Common Stock or a combination of cash and shares of Common Stock,
as applicable, in accordance with the terms of the Indenture referred to in this Note, and directs
that any shares of Common Stock issuable and deliverable upon such conversion, together with any
cash comprising the Daily Conversion Values or a portion of the Daily Settlement Amounts for each
of the 40 VWAP Trading Days during the Cash Settlement Averaging Period and for any fractional
shares, and any Notes representing any unconverted principal amount hereof, be issued and delivered
to the registered holder hereof unless a different name has been indicated below. If any shares of
Common Stock or any portion of this Note not converted are to be issued in the name of a Person
other than the undersigned, the undersigned will pay all transfer taxes payable with respect
thereto. Any amount required to be paid to the undersigned on account of interest accompanies this
Note.

	 	 	 	 	 	 	 

	Dated:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

Signature(s)
	 	 

	 	 	 

	 

Signature Guarantee

	 	 
	 
	 	 
	Signature(s) must be guaranteed
by an eligible Guarantor Institution
(banks, stock brokers, savings and
loan associations and credit unions)
with membership in an approved
signature guarantee medallion program
pursuant to Securities and Exchange
Commission Rule 17Ad-15 if shares
of Common Stock are to be issued, or
Notes to be delivered, other than
to and in the name of the registered holder.
	 	 

B-4

 

Fill in for registration of shares if
to be issued, and Notes if to
be delivered, other than to and in the
name of the registered holder:

                    

(Name)

                                        

(Street Address)

                                                            

(City, State and Zip Code)

Please print name and address

	 	 	 

	 

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

	 	$______,000
	 
	 	 
	 

	 	NOTICE: The above signature(s) of the holder(s)
hereof must correspond with the name as written upon
the face of the Note in every particular without
alteration or enlargement or any change whatever.
	 
	 	 
	 

	 	 
	 

	 	Social Security or Other Taxpayer Identification Number

B-5

 

EXHIBIT C

[FORM OF FUNDAMENTAL CHANGE REPURCHASE NOTICE]

To: ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.

The undersigned registered owner of this Note hereby acknowledges receipt of a notice from Alaska
Communications Systems Group, Inc. (the “Company”) as to the occurrence of a Fundamental Change
with respect to the Company and specifying the Fundamental Change Repurchase Date and requests and
instructs the Company to repay to the registered holder hereof in accordance with the applicable
provisions of the Indenture referred to in this Note (1) the entire principal amount of this Note,
or the portion thereof (that is $1,000 principal amount or an integral multiple thereof) below
designated, and (2) if such Fundamental Change Repurchase Date does not fall during the period
after an Interest Record Date and on or prior to the corresponding Interest Payment Date, accrued
and unpaid interest, including Supplementary Interest, if any, and Rule 144 Additional Interest, if
any, thereon to, but excluding, such Fundamental Change Repurchase Date.

In the case of certificated Notes, the certificate numbers of the Notes to be repurchased are as
set forth below:

	 	 	 	 	 

	Dated:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	Signature(s)
	 
	 	 	 	 
	 

	 	 	 	Social Security or Other Taxpayer Identification Number
	 
	 	 	 	 
	 

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

	 	 	 	$______,000
	 
	 	 	 	 
	 

	 	 	 	NOTICE: The above signature(s) of the holder(s) hereof
must correspond with the name as written upon the face
of the Note in every particular without alteration or
enlargement or any change whatever.

C-1

 

EXHIBIT D

[FORM OF ASSIGNMENT AND TRANSFER]

For value received ____________________________ hereby sell(s), assign(s) and transfer(s) unto
_________________ (Please insert social security or Taxpayer Identification Number of assignee) the
within Note, and hereby irrevocably constitutes and appoints ________ _____________ attorney to
transfer the said Note on the books of the Company, with full power of substitution in the
premises.

In connection with any transfer of the within Note occurring prior to the Resale Restriction
Termination Date, as defined in the Indenture governing such Note, the undersigned confirms that
such Note is being transferred:

	o	 	To Alaska Communications Systems Group, Inc. or a subsidiary thereof; or
	 
	o	 	Pursuant to the registration statement that has become or been declared effective under the Securities Act of 1933,
as amended; or
	 
	o	 	Pursuant to and in compliance with Rule 144 under the Securities Act of 1933, as amended;
	 
	o	 	Pursuant to and in compliance with Rule 144A under the Securities Act of 1933, as amended; or
	 
	o	 	Pursuant to another available exemption from registration under the Securities Act of 1933, as amended.

 

 

	 	 	 	 	 

	Dated:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	Signature(s)	 	 
	 
	 	 	 	 
	 	 	 
	Signature Guarantee	 	 
	 
	 	 	 	 
	Signature(s) must be guaranteed by an
eligible Guarantor Institution (banks, stock
brokers, savings and loan associations and
credit unions) with membership in an approved
signature guarantee medallion program pursuant
to Securities and Exchange Commission
Rule 17Ad-15 Notes are to be delivered, other
than to and in the name of the registered holder.	 	 

NOTICE: The signature on the assignment must correspond with the name as written upon the face of
the Note in every particular without alteration or enlargement or any change whatever.

2exv10w1

Exhibit 10.1

EXECUTION VERSION

$120,000,000 AGGREGATE PRINCIPAL AMOUNT

ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.

6.25% CONVERTIBLE NOTES DUE 2018

Purchase Agreement

May 4, 2011

J.P. MORGAN SECURITIES LLC

As the Representative of the several Initial Purchasers

383 Madison Avenue

New York, New York 10179

Ladies and Gentlemen:

     Alaska Communications Systems Group, Inc., a Delaware corporation (the “Company”), proposes to
issue and sell to the several purchasers named in Schedule A (the “Initial Purchasers”)
$120,000,000 in aggregate principal amount of its 6.25% Convertible Notes due 2018 (the “Notes”),
guaranteed on a joint and several basis by the subsidiaries of the Company listed in Schedule
B and each domestic subsidiary of the Company hereafter created or acquired, other than its
license subsidiaries, (the “Guarantors,” and such guarantees, the “Guarantees”). J.P. Morgan
Securities LLC has agreed to act as the representative of the several Initial Purchasers (in such
capacity, the “Representative”) in connection with the offering and sale of the Notes. To the
extent that there are no additional Initial Purchasers listed on Schedule A other than you,
the term “Initial Purchasers” as used herein shall mean you, as Initial Purchaser. The term
“Initial Purchasers” shall mean either the singular or plural as the context requires.

     The Notes will be convertible on the terms, and subject to the conditions, set forth in the
indenture (the “Indenture”) to be entered into among the Company, the Guarantors and The Bank of
New York Mellon Trust Company, N.A., as trustee (the “Trustee”), on the Closing Date (as defined
herein). As used herein, “Conversion Shares” means the fully paid, nonassessable shares of common
stock, par value $0.01 per share, of the Company (the “Common Stock”) to be received by the holders
of the Notes upon conversion of the Notes pursuant to the terms of the Notes and the Indenture. The
Notes will be convertible initially at a conversion rate of 97.2668 shares per $1,000 principal
amount of the Notes, on the terms, and subject to the conditions, set forth in the Indenture.

     The Notes will be offered and sold to the Initial Purchasers without being registered under
the Securities Act of 1933, as amended, and the rules and regulations of the Securities and
Exchange Commission (the “Commission”) thereunder (the “Securities Act”), in reliance upon an
exemption therefrom.

     This Agreement, the Indenture, the Notes and the Guarantees are referred to herein
collectively as the “Operative Documents.”

 

 

 2 

     The Company understands that the Initial Purchasers propose to make an offering of the Notes
on the terms and in the manner set forth herein and in the Disclosure Package (as defined below),
including the Preliminary Offering Memorandum (as defined below), and the Final Offering Memorandum
(as defined below) and agrees that the Initial Purchasers may resell, subject to the conditions set
forth herein, all or a portion of the Notes to purchasers at any time after the date of this
Agreement.

     The Company has prepared an offering memorandum, dated the date hereof, setting forth
information concerning the Company, the Notes and the Common Stock, in form and substance
reasonably satisfactory to the Initial Purchasers. As used in this Agreement, “Offering Memorandum”
means, collectively, the Preliminary Offering Memorandum dated as of May 3, 2011 (the “Preliminary
Offering Memorandum”) and the offering memorandum dated the date hereof (the “Final Offering
Memorandum”), each as then amended or supplemented by the Company. As used herein, each of the
terms “Disclosure Package,” “Offering Memorandum,” “Preliminary Offering Memorandum” and “Final
Offering Memorandum” shall include in each case the documents incorporated or deemed to be
incorporated by reference therein.

     The Company hereby confirms its agreements with the Initial Purchasers as follows:

     Section 1. Representations, Warranties and Covenants of the Company and the Guarantors.

     Each of the Company and the Guarantors, jointly and severally, hereby represent and warrant
to, and covenant with, each Initial Purchaser as follows:

     (a) No Registration. Assuming the accuracy of the representations and warranties of the
Initial Purchasers contained in Section 6 and their compliance with the agreements set forth
therein, it is not necessary, in connection with the issuance and sale of the Notes to the Initial
Purchasers, the initial offer, resale and delivery of the Notes by the Initial Purchasers and the
conversion of the Notes into Conversion Shares, in each case in the manner contemplated by this
Agreement, the Indenture, the Disclosure Package and the Offering Memorandum, to register the Notes
or the Conversion Shares under the Securities Act or to qualify the Indenture under the Trust
Indenture Act of 1939, as amended (the “Trust Indenture Act”).

     (b) No Integration. None of the Company or any of its subsidiaries has, directly or through
any agent, sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of,
any “security” (as defined in the Securities Act) that is or will be integrated with the sale of
the Notes or the Conversion Shares in a manner that would require registration of the Notes or the
Conversion Shares under the Securities Act.

     (c) Rule 144A. No securities of the same class (within the meaning of Rule 144A(d)(3) under
the Securities Act) as the Notes are listed on any national securities exchange registered under
Section 6 of the United States Securities Exchange Act of 1934, as amended (the “Exchange Act”), or
quoted on an automated inter-dealer quotation system.

     (d) Exclusive Agreement. Neither the Company nor any of the Guarantors has paid or agreed to
pay to any person any compensation for soliciting another person to purchase any securities of the
Company or the Guarantors (except as contemplated in this Agreement).

 

3

     (e) Offering Memoranda. Each of the Company and the Guarantors hereby confirms that it has
authorized the use of the Disclosure Package, the Preliminary Offering Memorandum and the Final
Offering Memorandum in connection with the offer and sale of the Notes by the Initial Purchasers.
Each document, if any, filed or to be filed pursuant to the Exchange Act and incorporated by
reference in the Disclosure Package or the Final Offering Memorandum complied when it was filed, or
will comply when it is filed, as the case may be, in all material respects with the Exchange Act
and the rules and regulations of the Commission thereunder and when read together with the
Disclosure Package or the Final Offering Memorandum, as applicable, did not and will not contain
any untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading. The Preliminary Offering Memorandum, at the date
thereof, did not contain any untrue statement of a material fact or 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. At the date of this Agreement and the Closing Date, the Final
Offering Memorandum did not and will not (and any amendment or supplement thereto, at the date
thereof and at the Closing Date, will not) contain any untrue statement of a material fact or omit
to state any material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided that the Company makes
no representation or warranty as to information contained in or omitted from the Preliminary
Offering Memorandum or the Final Offering Memorandum in reliance upon and in conformity with
written information furnished to the Company and the Guarantors by any Initial Purchaser through
the Representative expressly for use therein, it being understood and agreed that the only such
information furnished by any Initial Purchaser consists of the information described as such in
Section 8 hereof.

     (f) Disclosure Package. The term “Disclosure Package” shall mean (i) the Preliminary Offering
Memorandum, as amended or supplemented at the Applicable Time, (ii) the Final Term Sheet (as
defined herein) and (iii) any other writings that the parties expressly agree in writing to treat
as part of the Disclosure Package (“Issuer Written Information”). As of 7:00 a.m., New York time,
on May 5, 2011 (the “Applicable Time”), the Disclosure Package did not contain any untrue statement
of a material fact or omit to state any material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading. The
preceding sentence does not apply to statements in or omissions from the Disclosure Package based
upon and in conformity with written information furnished to the Company and the Guarantors by any
Initial Purchaser through the Representative expressly for use therein, it being understood and
agreed that the only such information furnished by any Initial Purchaser consists of the
information described as such in Section 8 hereof.

     (g) Statements in Offering Memorandum. The statements in the Disclosure Package and the Final
Offering Memorandum under the heading “Certain United States federal income tax consequences,”
insofar as such statements summarize legal matters or legal conclusions with respect thereto are
accurate and fair summaries of such legal matters.

     (h) Offering Materials Furnished to Initial Purchasers. To the extent not publicly available,
the Company has delivered to the Representative copies of the materials contained in the Disclosure
Package and the Final Offering Memorandum, each as amended or supplemented,

 

4

in such quantities and at such places as the Representative has reasonably requested for each
of the Initial Purchasers.

     (i) Authorization of the Purchase Agreement. This Agreement has been duly authorized,
executed and delivered by the Company and each of the Guarantors.

     (j) Authorization of the Indenture. The Indenture has been duly authorized by the Company and
each of the Guarantors; on the Closing Date, the Indenture will have been duly executed and
delivered by the Company and each of the Guarantors, respectively, and, assuming due authorization,
execution and delivery thereof by the Trustee, will constitute a valid and legally binding
agreement of the Company and each of the Guarantors enforceable against the Company and each of the
Guarantors in accordance with its terms, except as enforcement thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting
the rights and remedies of creditors or by general equitable principles; and the Indenture conforms
in all material respects to the description thereof contained in the Disclosure Package and the
Final Offering Memorandum.

     (k) Authorization of the Notes. The Notes have been duly authorized by the Company; when the
Notes are executed, authenticated and issued in accordance with the terms of the Indenture and
delivered to and paid for by the Initial Purchasers pursuant to this Agreement on the Closing Date
(assuming due authentication of the Notes by the Trustee), such Notes will constitute valid and
legally binding obligations of the Company, entitled to the benefits of the Indenture and
enforceable against the Company in accordance with their terms, except as enforcement thereof may
be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to
or affecting the rights and remedies of creditors or by general equitable principles; and the Notes
will conform in all material respects to the description thereof contained in the Disclosure
Package and the Final Offering Memorandum.

     (l) Authorization of the Guarantees. The Guarantees have been duly authorized by the
Guarantors; when the Guarantees are executed, authenticated and issued in accordance with the terms
of the Indenture and delivered to and paid for by the Initial Purchasers pursuant to this Agreement
on the respective Closing Date (assuming due authentication of the Guarantees by the Trustee), such
Guarantees will constitute valid and legally binding obligations of the Guarantors, entitled to the
benefits of the Indenture and enforceable against the Guarantors in accordance with their terms,
except as enforcement thereof may be limited by bankruptcy, insolvency, reorganization, or other
similar laws relating to or affecting the rights and remedies of creditors or by general equitable
principles; and the Guarantees will conform in all material respects to the description thereof
contained in the Disclosure Package and the Final Offering Memorandum.

     (m) Authorization of the Conversion Shares. The Conversion Shares have been duly authorized
and reserved and, when issued upon conversion of the Notes in accordance with the terms of the
Notes and the Indenture, will be validly issued, fully paid and nonassessable, and the issuance of
such shares will not be subject to any preemptive or similar rights.

     (n) No Material Adverse Change. Except as otherwise disclosed in the Disclosure Package and
the Final Offering Memorandum (exclusive of any amendments or supplements thereto subsequent to the
date of this Agreement), subsequent to the respective dates as of which

 

5

information is given in the Disclosure Package: (i) there has been no material adverse change,
or any development that could reasonably be expected to result in a material adverse change, in the
condition, financial or otherwise, or in the earnings, business, properties, operations or
prospects, whether or not arising from transactions in the ordinary course of business, of the
Company and its subsidiaries, considered as one entity (any such change is called a “Material
Adverse Change”); (ii) the Company and its subsidiaries, considered as one entity, have not
incurred any material liability or obligation, indirect, direct or contingent (in each case,
whether or not covered by insurance), nor entered into any material transaction or agreement; and
(iii) there has been no dividend or distribution of any kind declared, paid or made by the Company
or, except for dividends paid to the Company or other subsidiaries, any of its subsidiaries on any
class of capital stock or repurchase or redemption by the Company or any of its subsidiaries of any
class of capital stock.

     (o) Independent Accountants. KPMG LLP, who have expressed their opinion with respect to the
financial statements (which term as used in this Agreement includes the related notes thereto) and
supporting schedules included as a part of or incorporated by reference in the Disclosure Package
and the Final Offering Memorandum, are independent registered public accountants with respect to
the Company as required by the Securities Act and the Exchange Act and the applicable published
rules and regulations thereunder.

     (p) Preparation of the Financial Statements. The financial statements and the supporting
schedules included or incorporated by reference in the Disclosure Package and the Final Offering
Memorandum present fairly the consolidated financial position of the Company and its consolidated
subsidiaries as of and at the dates indicated and the results of their operations and cash flows
for the periods specified. Such financial statements and supporting schedules comply as to form
with the applicable accounting requirements of Regulation S-X and have been prepared in conformity
with generally accepted accounting principles as applied in the United States (“GAAP”) applied on a
consistent basis throughout the periods involved, except as may be expressly stated in the related
notes thereto. The financial data set forth in the Disclosure Package and the Final Offering
Memorandum under the captions “Summary—Selected consolidated financial data” and “Capitalization”
fairly present the information set forth therein on a basis consistent with that of the audited
financial statements contained in the Disclosure Package and the Final Offering Memorandum. The
Company’s ratios of earnings to fixed charges set forth in the Disclosure Package and the Final
Offering Memorandum have been calculated in compliance with Item 503(d) of Regulation S-K under the
Securities Act.

     (q) Incorporation and Good Standing of the Company and its Subsidiaries. Each of the Company
and its subsidiaries has been duly incorporated and is validly existing as a corporation in good
standing under the laws of the jurisdiction of its incorporation and has corporate power and
authority to own or lease, as the case may be, and operate its properties and to conduct its
business as described in the Disclosure Package and the Final Offering Memorandum and, in the case
of the Company, to enter into and perform its obligations under this Agreement. The Company and
each of its subsidiaries is duly qualified as a foreign corporation to transact business and is in
good standing in each jurisdiction in which such qualification is required, whether by reason of
the ownership or leasing of property or the conduct of business, except for such jurisdictions
where the failure to so qualify or to be in good standing would not, individually or in the
aggregate, result in a material adverse effect on the

 

6

condition, financial or otherwise, or on the earnings, business, properties, operations or
prospects, whether or not arising from transactions in the ordinary course of business, of the
Company and its subsidiaries, considered as one entity (a “Material Adverse Effect”). All of the
issued and outstanding shares of capital stock of each subsidiary have been duly authorized and
validly issued, are fully paid and nonassessable and are owned by the Company, directly or through
subsidiaries, free and clear of any security interest, mortgage, pledge, lien, encumbrance or
claim. The Company does not own or control, directly or indirectly, any corporation, association or
other entity other than the subsidiaries listed in Exhibit 21 to the Company’s Annual Report on
Form 10-K for the fiscal year ended December 31, 2010.

     (r) Capitalization and Other Capital Stock Matters. The authorized, issued and outstanding
capital stock of the Company is as set forth in the Disclosure Package and the Final Offering
Memorandum under the caption “Capitalization” (other than for subsequent issuances, if any,
pursuant to employee benefit plans described in the Disclosure Package and the Final Offering
Memorandum or upon exercise of outstanding options or warrants described in the Disclosure Package
and the Final Offering Memorandum, as the case may be). The Common Stock (including the Conversion
Shares) conforms in all material respects to the description thereof contained in the Disclosure
Package and the Final Offering Memorandum. All of the issued and outstanding shares of Common Stock
have been duly authorized and validly issued, are fully paid and nonassessable and have been issued
in compliance with federal and state securities laws. None of the outstanding shares of Common
Stock were issued in violation of any preemptive rights, rights of first refusal or other similar
rights to subscribe for or purchase securities of the Company. There are no authorized or
outstanding options, warrants, preemptive rights, rights of first refusal or other rights to
purchase, or equity or debt securities convertible into or exchangeable or exercisable for, any
capital stock of the Company or any of its subsidiaries other than those accurately described in
the Disclosure Package and the Final Offering Memorandum. The description of the Company’s stock
option, stock bonus and other stock plans or arrangements, and the options or other rights granted
thereunder, set forth or incorporated by reference in the Disclosure Package and the Final Offering
Memorandum accurately and fairly presents and summarizes such plans, arrangements, options and
rights.

     (s) Non-Contravention of Existing Instruments; No Further Authorizations or Approvals
Required. Neither the Company nor any of its subsidiaries is (i) in violation or in default (or,
with the giving of notice or lapse of time, would be in default) (“Default”) under its charter or
by-laws, (ii) in Default under any indenture, mortgage, loan or credit agreement, deed of trust,
note, contract, franchise, lease or other agreement, obligation, condition, covenant or instrument
to which the Company or such subsidiary is a party or by which it may be bound (including, without
limitation, the Credit Agreement, dated as of October 21, 2010 (the “Credit Agreement”), among the
Company, Alaska Communications Systems Holdings, Inc., the lenders named therein and JPMorgan Chase
Bank, N.A., as Administrative Agent), or to which any of the property or assets of the Company or
any of its subsidiaries is subject (each, an “Existing Instrument”) or (iii) in violation of any
statute, law, rule, regulation, judgment, order or decree of any court, regulatory body,
administrative agency, governmental body, arbitrator or other authority having jurisdiction over
the Company or such subsidiary or any of its properties, as applicable, except with respect to
clause (ii) only, for such Defaults as would not, individually or in the aggregate, have a Material
Adverse Effect.

 

7

     The execution, delivery and performance by the Company and each of the Guarantors of the
Operative Documents and consummation of the transactions contemplated thereby (including, without
limitation, the application of the net proceeds from the sale of the Notes sold), by the Disclosure
Package and by the Final Offering Memorandum (i) have been duly authorized by all necessary
corporate action and will not result in any Default under the charter or by-laws of the Company or
any such Guarantor, (ii) will not conflict with or constitute a breach of, or Default or a Debt
Repayment Triggering Event (as defined below) under, or result in the creation or imposition of any
lien, charge or encumbrance upon any property or assets of the Company or any such Guarantor
pursuant to, or require the consent of any other party to, any Existing Instrument and (iii) will
not result in any violation of any statute, law, rule, regulation, judgment, order or decree
applicable to the Company or any such Guarantor of any court, regulatory body, administrative
agency, governmental body, arbitrator or other authority having jurisdiction over the Company or
any such Guarantor or any of its or their properties.

     No consent, approval, authorization or other order of, or registration or filing with, any
court or other governmental or regulatory authority or agency is required for the Company’s or the
Guarantors’ execution, delivery and performance of the Operative Documents and consummation of the
transactions contemplated thereby, by the Disclosure Package and by the Final Offering Memorandum,
except (i) such as have been obtained or made by the Company and are in full force and effect under
the Securities Act, applicable state securities or blue sky laws and from the Financial Industry
Regulatory Authority (“FINRA”) and (ii) such as have been obtained or made by the Company under the
rules of the Nasdaq Stock Market LLC.

     As used herein, a “Debt Repayment Triggering Event” means any event or condition which gives,
or with the giving of notice or lapse of time would give, the holder of any note, debenture or
other evidence of indebtedness (or any person acting on such holder’s behalf) the right to require
the repurchase, redemption or repayment of all or a portion of such indebtedness by the Company or
any of its subsidiaries.

     (t) No Stamp or Transfer Taxes. There are no stamp or other issuance or transfer taxes or
duties or other similar fees or charges under federal law or the laws of any state, or any
political subdivision thereof, or any other U.S. or non-U.S. governmental authority required to be
paid in connection with the execution and delivery of this Agreement, the issuance or sale by the
Company of the Notes, upon the issuance of Common Stock upon the conversion of the Notes or upon
the issuance by the Guarantors of the Guarantees.

     (u) No Material Actions or Proceedings. Except as otherwise disclosed in the Disclosure
Package and the Final Offering Memorandum, there are no legal or governmental actions, suits or
proceedings pending or, to the best of the Company’s knowledge, threatened against or affecting the
Company or any of its subsidiaries, (i) which has as the subject thereof any officer or director
of, or property owned or leased by, the Company or any of its subsidiaries or (ii) relating to
environmental or employment discrimination matters, where in either such case, (A) there is a
reasonable possibility that such action, suit or proceeding might be determined adversely to the
Company or such subsidiary, or any officer or director of, or property owned or leased by, the
Company or any of its subsidiaries and (B) any such action, suit or proceeding, if so determined
adversely, would reasonably be expected to have a Material

 

8

Adverse Effect or adversely affect the consummation of the transactions contemplated by this
Agreement.

     (v) Labor Matters. (i) No labor problem or dispute with the employees of the Company or any
of its subsidiaries exists or is threatened or imminent, and (ii) none of the Company or any of the
Guarantors is aware of any existing, threatened or imminent labor disturbance by the employees of
any of its or its subsidiaries’ principal suppliers, contractors or customers, in each case, that
could have a Material Adverse Effect.

     (w) Intellectual Property Rights. The Company and its subsidiaries own, possess, license or
have other valid and subsisting rights to use, on reasonable terms, all patents, patent
applications, trademarks, service marks, trade names, and registrations and applications thereof,
copyrights (whether registered or unregistered), licenses, inventions, trade secrets, technology,
know-how (including other unpatented or unpatentable proprietary or confidential information,
systems or procedures) and other intellectual property (collectively, the “Intellectual Property”)
necessary for the conduct of the Company’s business as now conducted or as proposed in the
Disclosure Package and the Final Offering Memorandum to be conducted. Except as set forth in the
Disclosure Package and the Final Offering Memorandum, (a) no party has been granted an exclusive
license to use any portion of such Intellectual Property owned by the Company; (b) there is no
material infringement by third parties of any such Intellectual Property owned by or exclusively
licensed to the Company; (c) there is no pending or threatened action, suit, proceeding or claim by
others challenging the Company’s rights in or to any material Intellectual Property, and none of
the Company or any of the Guarantors is aware of any facts that would form a reasonable basis for
any such claim; (d) there is no pending or threatened action, suit, proceeding or claim by others
challenging the validity or scope of any such Intellectual Property, and none of the Company or any
of the Guarantors is aware of any facts that would form a reasonable basis for any such claim; and
(e) there is no pending or threatened action, suit, proceeding or claim by others that the
Company’s business as now conducted infringes or otherwise violates any patent, trademark,
copyright, trade secret or other proprietary rights of others, and none of the Company or any of
the Guarantors is aware of any other fact that would form a reasonable basis for any such claim.

     (x) All Necessary Permits, etc. The Company and each subsidiary, taken as a whole, possess
such valid and current licenses, certificates, authorizations or permits issued by the appropriate
state, federal or foreign regulatory agencies or bodies necessary to conduct their respective
businesses, and neither the Company nor any subsidiary has received any notice of proceedings
relating to the revocation or modification of, or non-compliance with, any such license,
certificate, authorization or permit which, singly or in the aggregate, if the subject of an
unfavorable decision, ruling or finding, could have a Material Adverse Effect.

     (y) Title to Properties. The Company and each of its subsidiaries has good and marketable
title to all the properties and assets reflected as owned in the financial statements referred to
in Section 1(n) above or elsewhere in the Disclosure Package and the Final Offering Memorandum, in
each case free and clear of any security interests, mortgages, liens, encumbrances, equities,
claims and other defects, except such as do not materially and adversely affect the value of such
property and do not materially interfere with the use made or proposed to be made of such property
by the Company or such subsidiary. The real property, improvements,

 

9

equipment and personal property held under lease by the Company or any subsidiary are held
under valid and enforceable leases, with such exceptions as are not material and do not materially
interfere with the use made or proposed to be made of such real property, improvements, equipment
or personal property by the Company or such subsidiary.

     (z) Tax Law Compliance. The Company and its consolidated subsidiaries have filed all
necessary federal, state, local and foreign income and franchise tax returns in a timely manner and
have paid all taxes required to be paid by any of them and, if due and payable, any related or
similar assessment, fine or penalty levied against any of them, except for any taxes, assessments,
fines or penalties (i) as may be being contested in good faith and by appropriate proceedings or
(ii) the non-payment of which would not result in a Material Adverse Effect. The Company has made
appropriate provisions in the financial statements referred to in Section 1(p) above in respect of
all federal, state, local and foreign income and franchise taxes for all current or prior periods
as to which the tax liability of the Company or any of its consolidated subsidiaries has not been
finally determined.

     (aa) Neither Company nor any Guarantor is an “Investment Company”. The Company and each of
the Guarantors has been advised of the rules and requirements under the Investment Company Act of
1940, as amended, and the rules and regulations promulgated thereunder (the “Investment Company
Act”). None of the Company or any of the Guarantors is, and after receipt of payment for the Notes
and the application of the proceeds thereof as contemplated under the caption “Use of proceeds” in
the Disclosure Package and the Final Offering Memorandum will be, an “investment company” within
the meaning of the Investment Company Act and will conduct its business in a manner so that it will
not become subject to the Investment Company Act.

     (bb) Compliance with Reporting Requirements. The Company is subject to and in full compliance
with the reporting requirements of Section 13 or Section 15(d) of the Exchange Act.

     (cc) Insurance. Each of the Company and its subsidiaries are insured by recognized,
financially sound and reputable institutions with policies in such amounts and with such
deductibles and covering such risks as are generally deemed adequate and customary for their
businesses including, but not limited to, policies covering real and personal property owned or
leased by the Company and its subsidiaries against theft, damage, destruction, acts of terrorism or
vandalism and earthquakes. All policies of insurance and fidelity or surety bonds insuring the
Company or any of its subsidiaries or their respective businesses, assets, employees, officers and
directors are in full force and effect; the Company and its subsidiaries are in compliance with the
terms of such policies and instruments in all material respects; and there are no claims by the
Company or any of its subsidiaries under any such policy or instrument as to which any insurance
company is denying liability or defending under a reservation of rights clause; and neither the
Company nor any such subsidiary has been refused any insurance coverage sought or applied for. The
Company has no reason to believe that it or any subsidiary will not be able (i) to renew its
existing insurance coverage as and when such policies expire or (ii) to obtain comparable coverage
from similar institutions as may be necessary or appropriate to conduct its business as now
conducted and at a cost that would not have a Material Adverse Effect.

 

10

     (dd) No Restriction on Dividends or other Distributions. No subsidiary of the Company is
currently prohibited, directly or indirectly, from paying any dividends or other distributions to
the Company or any of the Guarantors, from making any other distribution on such subsidiary’s
capital stock, from repaying to the Company or any Guarantor any loans or advances to such
subsidiary from the Company or such Guarantor or from transferring any of such subsidiary’s
property or assets to the Company or any other subsidiary of the Company, except as described in or
contemplated by the Disclosure Package and the Final Offering Memorandum.

     (ee) No Price Stabilization or Manipulation. The Company has not taken and will not take,
directly or indirectly, any action designed to or that might be reasonably expected to cause or
result in stabilization or manipulation of the price of any security of the Company to facilitate
the sale or resale of the Notes. The Company acknowledges that the Initial Purchasers may engage in
passive market making transactions in the Common Stock on the Nasdaq Stock Market LLC in accordance
with Regulation M under the Exchange Act.

     (ff) Related Party Transactions. There are no material business relationships or related
party transactions involving the Company or any subsidiary or any other person that have not been
described in the Disclosure Package or the Final Offering Memorandum.

     (gg) No General Solicitation. None of the Company or any of its affiliates (as defined in
Rule 501(b) of Regulation D under the Securities Act (“Regulation D”)), has, directly or through an
agent, engaged in any form of general solicitation or general advertising (as those terms are used
in Regulation D) in connection with the offering of the Notes or the Conversion Shares under the
Securities Act or in any manner involving a public offering within the meaning of Section 4(2) of
the Securities Act; the Company has not entered into any contractual arrangement with respect to
the distribution of the Notes or the Conversion Shares except for this Agreement, and the Company
will not enter into any such arrangement.

     (hh) No Unlawful Contributions or Other Payments. Neither the Company nor any of its
subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee or
affiliate of the Company or any of its subsidiaries is aware of or has taken any action, directly
or indirectly, that would result in a violation by such persons of the FCPA, including, without
limitation, making use of the mails or any means or instrumentality of interstate commerce
corruptly in furtherance of an offer, payment, promise to pay or authorization of the payment of
any money, or other property, gift, promise to give, or authorization of the giving of anything of
value to any “foreign official” (as such term is defined in the FCPA) or any foreign political
party or official thereof or any candidate for foreign political office, in contravention of the
FCPA and the Company, its subsidiaries and, to the knowledge of the Company and each Guarantor, its
affiliates have conducted their businesses in compliance with the FCPA and have instituted and
maintain policies and procedures designed to ensure, and which are reasonably expected to continue
to ensure, continued compliance therewith. “FCPA” means the Foreign Corrupt Practices Act of 1977,
as amended, and the rules and regulations thereunder.

     (ii) No Conflict with Money Laundering Laws. The operations of the Company and its
subsidiaries are and have been conducted at all times in compliance with applicable financial
recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting

 

11

Act of 1970, as amended, the money laundering statutes of all applicable jurisdictions, the
rules and regulations thereunder and any related or similar rules, regulations or guidelines
issued, administered or enforced by any governmental agency (collectively, the “Money Laundering
Laws”) and no action, suit or proceeding by or before any court or governmental agency, authority
or body or any arbitrator involving the Company or any of its subsidiaries with respect to the
Money Laundering Laws is pending or, to the best knowledge of the Company or any of the Guarantors,
threatened.

     (jj) No Conflict with OFAC Laws. Neither the Company nor any of its subsidiaries nor, to the
knowledge of the Company or any Guarantor, any director, officer, agent, employee or affiliate of
the Company or any of its subsidiaries is currently subject to any U.S. sanctions administered by
the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and the Company will
not directly or indirectly use the proceeds of the offering, or lend, contribute or otherwise make
available such proceeds to any subsidiary, joint venture partner or other person or entity, for the
purpose of financing the activities of any person currently subject to any U.S. sanctions
administered by OFAC.

     (kk) Compliance with Environmental Laws. Except as otherwise disclosed in the Disclosure
Package and the Final Offering Memorandum, (i) neither the Company nor any of its subsidiaries is
in violation of any federal, state, local or foreign law, regulation, order, permit or other
requirement relating to pollution or protection of human health or the environment (including,
without limitation, ambient air, surface water, groundwater, land surface or subsurface strata) or
wildlife, including without limitation, laws and regulations relating to emissions, discharges,
releases or threatened releases of chemicals, pollutants, contaminants, wastes, toxic substances,
hazardous substances, petroleum and petroleum products (collectively, “Materials of Environmental
Concern”), or otherwise relating to the manufacture, processing, distribution, use, treatment,
storage, disposal, transport or handling of Materials of Environmental Concern (collectively,
“Environmental Laws”), which violation includes, but is not limited to, noncompliance with any
permits or other governmental authorizations required for the operation of the business of the
Company or its subsidiaries under applicable Environmental Laws, or noncompliance with the terms
and conditions thereof, nor has the Company or any of its subsidiaries received any written
communication, whether from a governmental authority, citizens group, employee or otherwise, that
alleges that the Company or any of its subsidiaries is in violation of any Environmental Law,
except as would not, individually or in the aggregate, have a Material Adverse Effect; (ii) there
is no claim, action or cause of action filed with a court or governmental authority, no
investigation with respect to which the Company has received written notice, and no written notice
by any person or entity alleging potential liability for investigatory costs, cleanup costs,
governmental responses costs, natural resources damages, property damages, personal injuries,
attorneys’ fees or penalties arising out of, based on or resulting from the presence, or release
into the environment, of any Material of Environmental Concern at any location owned, leased or
operated by the Company or any of its subsidiaries, now or in the past (collectively,
“Environmental Claims”), pending or, to the best of the Company’s and each Guarantor’s knowledge,
threatened against the Company or any of its subsidiaries or any person or entity whose liability
for any Environmental Claim the Company or any of its subsidiaries has retained or assumed either
contractually or by operation of law, except as would not, individually or in the aggregate, have a
Material Adverse Effect; (iii) to the best of the Company’s and each Guarantor’s knowledge, there
are no past, present or

 

12

anticipated future actions, activities, circumstances, conditions, events or incidents,
including, without limitation, the release, emission, discharge, presence or disposal of any
Material of Environmental Concern, that reasonably could result in a violation of any Environmental
Law, require expenditures to be incurred pursuant to Environmental Law, or form the basis of a
potential Environmental Claim against the Company or any of its subsidiaries or against any person
or entity whose liability for any Environmental Claim the Company or any of its subsidiaries has
retained or assumed either contractually or by operation of law, except as would not, individually
or in the aggregate, have a Material Adverse Effect; and (iv) neither the Company nor any of its
subsidiaries is subject to any pending or threatened proceeding under Environmental Law to which a
governmental authority is a party and which is reasonably likely to result in monetary sanctions of
$100,000 or more.

     (ll) Periodic Review of Costs of Environmental Compliance. In the ordinary course of its
business, the Company conducts a periodic review of the effect of Environmental Laws on the
business, operations and properties of the Company and its subsidiaries, in the course of which it
identifies and evaluates associated costs and liabilities (including, without limitation, any
capital or operating expenditures required for cleanup, closure of properties or compliance with
Environmental Laws or any permit, license or approval, any related constraints on operating
activities and any potential liabilities to third parties). On the basis of such review and the
amount of its established reserves, the Company has reasonably concluded that such associated costs
and liabilities would not, individually or in the aggregate, have a Material Adverse Effect.

     (mm) ERISA Compliance. None of the following events has occurred or exists: (i) a failure to
fulfill the obligations, if any, under the minimum funding standards of Section 302 of the United
States Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and the regulations
and published interpretations thereunder with respect to a Plan, determined without regard to any
waiver of such obligations or extension of any amortization period; (ii) an audit or investigation
by the Internal Revenue Service, the U.S. Department of Labor, the Pension Benefit Guaranty
Corporation or any other federal or state governmental agency or any foreign regulatory agency with
respect to the employment or compensation of employees by the Company or any of its subsidiaries;
(iii) any breach of any contractual obligation, or any violation of law or applicable qualification
standards, with respect to the employment or compensation of employees by the Company or any of its
subsidiaries, except in each case with respect to the events or conditions set forth in (ii) and
(iii) hereof, as could not, individually or in the aggregate, result in a Material Adverse Effect.
None of the following events has occurred or is reasonably likely to occur: (i) a material increase
in the aggregate amount of contributions required to be made to all Plans in the current fiscal
year of the Company and its subsidiaries compared to the amount of such contributions made in the
Company and its subsidiaries’ most recently completed fiscal year; (ii) a material increase in the
Company and its subsidiaries’ “accumulated post-retirement benefit obligations” (within the meaning
of Statement of Financial Accounting Standards 106) compared to the amount of such obligations in
the Company and its subsidiaries’ most recently completed fiscal year; (iii) any event or condition
giving rise to a liability under Title IV of ERISA; or (iv) the filing of a claim by one or more
employees or former employees of the Company or any of its subsidiaries related to its or their
employment, except in each case with respect to the events or conditions set forth in (iii) and
(iv) hereof, as could not, individually or in the aggregate, result in a Material Adverse Effect.
For purposes of this paragraph, the term “Plan” means a plan (within the meaning of Section 3(3) of
ERISA)

 

13

subject to Title IV of ERISA with respect to which the Company or any of its subsidiaries may
have any liability.

     (nn) Brokers. There is no broker, finder or other party that is entitled to receive from the
Company any brokerage or finder’s fee or other fee or commission as a result of any transactions
contemplated by this Agreement.

     (oo) No Outstanding Loans or Other Indebtedness. There are no outstanding loans, advances
(except normal advances for business expenses in the ordinary course of business) or guarantees or
indebtedness by the Company to or for the benefit of any of the officers or directors of the
Company or any of the members of any of their families, except as disclosed in the Disclosure
Package and the Final Offering Memorandum.

     (pp) Sarbanes-Oxley Compliance. There is and has been no failure on the part of the Company
and any of the Company’s directors or officers, in their capacities as such, to comply with any
provision of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection
therewith (the “Sarbanes-Oxley Act”), including Section 402 related to loans and Sections 302 and
906 related to certifications.

     (qq) Internal Controls and Procedures. The Company maintains (i) effective internal control
over financial reporting as defined in Rule 13a-15 under the Exchange Act, and (ii) a system of
internal accounting controls sufficient to provide reasonable assurance that (A) transactions are
executed in accordance with management’s general or specific authorizations; (B) transactions are
recorded as necessary to permit preparation of financial statements in conformity with generally
accepted accounting principles and to maintain asset accountability; (C) access to assets is
permitted only in accordance with management’s general or specific authorization; and (D) the
recorded accountability for assets is compared with the existing assets at reasonable intervals and
appropriate action is taken with respect to any differences.

     (rr) No Material Weakness in Internal Controls. Except as disclosed in the Disclosure Package
and the Final Offering Memorandum, since the end of the Company’s most recent audited fiscal year,
there has been (i) no material weakness in the Company’s internal control over financial reporting
(whether or not remediated) and (ii) no change in the Company’s internal control over financial
reporting that has materially affected, or is reasonably likely to materially affect, the Company’s
internal control over financial reporting.

     (ss) Disclosure Controls. The Company and its subsidiaries maintain an effective system of
“disclosure controls and procedures” (as defined in Rule 13a-15 of the Exchange Act) that is
designed to ensure that information required to be disclosed by the Company in reports that it
files or submits under the Exchange Act is recorded, processed, summarized and reported within the
time periods specified in the Commission’s rules and forms, including controls and procedures
designed to ensure that such information is accumulated and communicated to the Company’s
management as appropriate to allow timely decisions regarding required disclosure. The Company and
its subsidiaries have carried out evaluations of the effectiveness of their disclosure controls and
procedures as required by Rule 13a-15 of the Exchange Act.

 

14

     (tt) Stock Options. With respect to the stock options (the “Stock Options”) granted pursuant
to the stock-based compensation plans of the Company and its subsidiaries (the “Company Stock
Plans”) (i) each Stock Option designated by the Company or the relevant subsidiary of the Company
at the time of grant as an “incentive stock option” under Section 422 of the Internal Revenue Code
of 1986, as amended (the “Code”), so qualifies, (ii) each grant of a Stock Option was duly
authorized no later than the date on which the grant of such Stock Option was by its terms to be
effective (the “Grant Date”) by all necessary corporate action, including, as applicable, approval
by the board of directors of the Company or the relevant subsidiary of the Company (or a duly
constituted and authorized committee thereof) and any required stockholder approval by the
necessary number of votes or written consents, and the award agreement governing such grant (if
any) was duly executed and delivered by each party thereto, (iii) each such grant was made in
accordance with the terms of the Company Stock Plans, the Exchange Act and all other applicable
laws and regulatory rules or requirements, including the rules of Nasdaq Stock Market LLC and any
other exchange on which the securities of the Company or the relevant subsidiary of the Company are
traded, (iv) the per share exercise price of each Stock Option was equal to or greater than the
fair market value of a share of Common Stock on the applicable Grant Date and (v) each such grant
was properly accounted for in accordance with GAAP in the consolidated financial statements
(including the related notes) of the Company and disclosed in the Company’s filings with the
Commission in accordance with the Exchange Act and all other applicable laws, except in the case of
clauses (ii), (iii) or (iv) for such grants that would not, individually or in the aggregate, have
a Material Adverse Effect.

     (uu) Neither the Company nor any of its subsidiaries has knowingly granted, and there is no
and has been no policy or practice of the Company or any of its subsidiaries of granting, Stock
Options prior to, or otherwise coordinating the grant of Stock Options with, the release or other
public announcement of material information regarding the Company or its subsidiaries or their
results of operations or prospects.

     (vv) Subsidiaries. The subsidiaries listed on Annex A attached hereto are the only
significant subsidiaries of the Company as defined by Rule 1-02 of Regulation S-X (the
“Subsidiaries”).

     (ww) Lending Relationship. Except as disclosed in the Disclosure Package and the Final
Offering Memorandum, the Company (i) does not have any material lending or other relationship with
any bank or lending affiliate of any Initial Purchaser and (ii) does not intend to use any of the
proceeds from the sale of the Notes hereunder to repay any outstanding debt owed to any affiliate
of any Initial Purchaser.

     (xx) Solvency. On and immediately after the Closing Date, each of the Company and each
Guarantor (after giving effect to the issuance of the Notes and the other transactions related
thereto as described in each of the Disclosure Package and the Offering Memorandum) will be
Solvent. As used in this paragraph, the term “Solvent” means, with respect to a particular date,
that on such date (i) the present fair market value (or present fair saleable value) of the assets
of the Company or the Guarantor, as applicable, is not less than the total amount required to pay
the liabilities of the Company or the Guarantor, as applicable, on its total existing debts and
liabilities (including contingent liabilities) as they become absolute and matured; (ii) the
Company or the Guarantor, as applicable, is able to realize upon its assets and pay its debts and
other liabilities,

 

15

contingent obligations and commitments as they mature and become due in the normal course of
business; (iii) assuming consummation of the issuance of the Notes as contemplated by this
Agreement and the Disclosure Package, the Company or the Guarantor, as applicable, is not incurring
debts or liabilities beyond its ability to pay as such debts and liabilities mature; (iv) the
Company or the Guarantor, as applicable, is not engaged in any business or transaction, and does
not propose to engage in any business or transaction, for which its property would constitute
unreasonably small capital after giving due consideration to the prevailing practice in the
industry in which the Company or the Guarantor, as applicable, is engaged; and (v) the Company or
the Guarantor, as applicable, is not a defendant in any civil action that would result in a
judgment that the Company or the Guarantor, as applicable, is or would become unable to satisfy.

     (yy) Statistical and Market Data. Nothing has come to the attention of the Company that has
caused the Company to believe that the statistical and market-related data included or incorporated
by reference in each of the Disclosure Package and the Offering Memorandum is not based on or
derived from sources that are reliable and accurate in all material respects.

     Any certificate signed by an officer of the Company or any Guarantor and delivered to the
Representative or to counsel for the Initial Purchasers shall be deemed to be a representation and
warranty by the Company or such Guarantor to each Initial Purchaser as to the matters set forth
therein.

     Section 2. Purchase, Sale and Delivery of the Notes

     (a) The Notes. The Company agrees to issue and sell to the several Initial Purchasers the
Notes upon the terms herein set forth. On the basis of the representations, warranties and
agreements herein contained, and upon the terms but subject to the conditions herein set forth, the
Initial Purchasers agree, severally and not jointly, to purchase from the Company the respective
aggregate principal amount of Notes set forth opposite their names on Schedule A. The
purchase price per Note to be paid by the several Initial Purchasers to the Company shall be 97% of
the aggregate principal amount thereof.

     (b) The Closing Date. Delivery of the Notes to be purchased by the Initial Purchasers and
payment therefor shall be made at the offices of Simpson Thacher & Bartlett LLP, 425 Lexington
Avenue, New York, NY 10017 (or such other place as may be agreed to by the Company, the Guarantors
and the Representative) at 9:00 a.m., New York time, on May 10, 2011, or such other time and date
not later than 1:30 p.m., New York time, on May 17, 2011 as the Representative shall designate by
notice to the Company (the time and date of such closing are called the “Closing Date”).

     (c) Payment for the Notes. Payment for the Notes shall be made at the Closing Date by wire
transfer of immediately available funds to the order of the Company.

     It is understood that the Representative has been authorized, for its own account and the
accounts of the several Initial Purchasers, to accept delivery of and receipt for, and make payment
of the purchase price for, the Notes the Initial Purchasers have agreed to purchase. The
Representative may (but shall not be obligated to) make payment for any Notes to be purchased by
any Initial Purchaser whose funds shall not have been received by the Representative by the

 

16

Closing Date for the account of such Initial Purchaser, but any such payment shall not relieve
such Initial Purchaser from any of its obligations under this Agreement.

     (d) Delivery of the Notes. The Company shall deliver, or cause to be delivered, to the
Representative for the accounts of the several Initial Purchasers the Notes at the Closing Date,
against the irrevocable release of a wire transfer of immediately available funds for the amount of
the purchase price therefor. Delivery of the Notes shall be made through the facilities of The
Depository Trust Company unless the Representative shall otherwise instruct. Time shall be of the
essence, and delivery at the time and place specified in this Agreement is a further condition to
the obligations of the Initial Purchasers.

     Section 3. Covenants of the Company and the Guarantors

     Each of the Company and the Guarantors, jointly and severally, covenant and agree with each
Initial Purchaser as follows:

     (a) Representative’s Review of Proposed Amendments and Supplements. During such period
beginning on the date hereof and ending on the date of the completion of the resale of the Notes by
the Initial Purchasers (as notified by the Representative to the Company), prior to amending or
supplementing the Disclosure Package or the Final Offering Memorandum (other than any filings of
any quarterly report on Form 10-Q or any amendment or supplement to such form or to the Company’s
Annual Report on Form 10-K for the year ended December 31, 2010), the Company and the Guarantors
shall furnish to the Representative for review a copy of each such proposed amendment or
supplement, and the Company shall not print, use or distribute such proposed amendment or
supplement to which the Representative reasonably objects.

     (b) Amendments and Supplements to the Offering Memorandum and Other Securities Act Matters.
If, at any time prior to the completion of the resale of the Notes by the Initial Purchasers (as
notified by the Representative to the Company), any event or development shall occur or condition
exist as a result of which it is necessary to amend or supplement the Disclosure Package or the
Final Offering Memorandum in order that the Disclosure Package or the Final Offering Memorandum
will not include an untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements therein, in the light of the circumstances under which
they were made or then prevailing, as the case may be, not misleading, or if in the opinion of the
Representative or counsel for the Initial Purchasers it is otherwise necessary to amend or
supplement the Disclosure Package or the Final Offering Memorandum to comply with law, the Company
and each of the Guarantors shall promptly notify the Initial Purchasers and prepare, subject to
Section 3(a) hereof, such amendment or supplement as may be necessary to correct such untrue
statement or omission.

     (c) Copies of Disclosure Package and the Offering Memorandum. To the extent not publicly
available, the Company and the Guarantors agree to furnish to the Representative, without charge,
until the earlier of nine months after the date hereof or the completion of the resale of the Notes
by the Initial Purchasers (as notified by the Initial Purchasers to the Company) as many copies of
the materials contained in the Disclosure Package and the Final Offering Memorandum and any
amendments and supplements thereto as the Initial Purchasers may request.

 

17

     (d) Blue Sky Compliance. The Company and the Guarantors shall cooperate with the
Representative and counsel for the Initial Purchasers, as the Initial Purchasers may reasonably
request from time to time, to qualify or register the Notes for sale under (or obtain exemptions
from the application of) the state securities or blue sky laws or Canadian provincial securities
laws or other foreign laws of those jurisdictions designated by the Representative, shall comply
with such laws and shall continue such qualifications, registrations and exemptions in effect so
long as required for the distribution of the Notes. None of the Company or any of the Guarantors
shall be required to qualify as a foreign corporation or to take any action that would subject it
to general service of process in any such jurisdiction where it is not presently qualified or where
it would be subject to taxation as a foreign corporation, other than those arising out of the
offering or sale of the Notes in any jurisdiction where it is not now so subject. The Company and
the Guarantors will advise the Representative promptly of the suspension of the qualification or
registration of (or any such exemption relating to) the Notes for offering, sale or trading in any
jurisdiction or any initiation or threat of any proceeding for any such purpose, and in the event
of the issuance of any order suspending such qualification, registration or exemption, the Company
and the Guarantors shall use its best efforts to obtain the withdrawal thereof at the earliest
possible moment.

     (e) Rule 144A Information. For so long as any of the Notes are “restricted securities” within
the meaning of Rule 144(a)(3) under the Securities Act, the Company shall provide to any holder of
the Notes or to any prospective purchaser of the Notes designated by any holder, upon request of
such holder or prospective purchaser, information required to be provided by Rule 144A(d)(4) of the
Securities Act if, at the time of such request, the Company is not subject to the reporting
requirements under Section 13 or 15(d) of the Exchange Act.

     (f) Compliance with Securities Law. The Company will comply with all applicable securities
and other laws, rules and regulations, including, without limitation, the Sarbanes-Oxley Act, and
use its best efforts to cause the Company’s directors and officers, in their capacities as such, to
comply with such laws, rules and regulations, including, without limitation, the provisions of the
Sarbanes-Oxley Act.

     (g) Legends. Each of the Notes will bear, to the extent applicable, the legend contained in
“Transfer restrictions” in the Disclosure Package and the Final Offering Memorandum for the time
period and upon the other terms stated therein.

     (h) Written Information Concerning the Offering. Without the prior written consent of the
Representative, neither the Company nor any of the Guarantors will give to any prospective
purchaser of the Notes or any other person not in its employ any written information concerning the
offering of the Notes other than the Disclosure Package, the Final Offering Memorandum or any other
offering materials prepared by or with the prior consent of the Representative.

     (i) No General Solicitation. Except following the effectiveness of an applicable registration
statement, the Company will not, and will cause its subsidiaries not to, solicit any offer to buy
or offer to sell the Notes by means of any form of general solicitation or general advertising (as
those terms are used in Regulation D under the Securities Act) or in any manner involving a public
offering within the meaning of Section 4(2) of the Securities Act.

 

18

     (j) No Integration. The Company will not, and will cause its subsidiaries not to, sell, offer
for sale or solicit offers to buy or otherwise negotiate in respect of any “security” (as defined
in the Securities Act) in a transaction that could be integrated with the sale of the Notes in a
manner that would require the registration under the Securities Act of the Notes.

     (k) Information to Publishers. Any information provided by the Company or any of the
Guarantors to publishers of publicly available databases about the terms of the Notes and the
Indenture shall include a statement that the Notes have not been registered under the Act and are
subject to restrictions under Rule 144A of the Act.

     (l) DTC. The Company and each of the Guarantors will cooperate with the Representative and
use its best efforts to permit the Notes to be eligible for clearance and settlement through The
Depository Trust Company.

     (m) Rule 144 Tolling. The Company will not, and will not permit any of its “affiliates” (as
defined in Rule 144 under the Securities Act) to, resell any of the Notes that constitute
“restricted securities” under Rule 144 that have been reacquired by any of them.

     (n) Use of Proceeds. The Company shall apply the net proceeds from the sale of the Notes sold
by it in the manner described under the caption “Use of Proceeds” in the Disclosure Package and the
Final Offering Memorandum and such application of net proceeds will be in accordance with
applicable law, including the requirements of the Exchange Act.

     (o) Transfer Agent. The Company shall engage and maintain, at its expense, a registrar and
transfer agent for the Common Stock.

     (p) Available Conversion Shares. The Company shall reserve and keep available at all times,
free of pre-emptive rights, the full number of Conversion Shares.

     (q) Conversion Rate. Between the date hereof and the Closing Date, none of the Company or any
of the Guarantors will do or authorize any act or thing that would result in an adjustment of the
conversion rate.

     (r) Company to Provide Interim Financial Statements and Other Information. Prior to the
Closing Date, the Company will furnish the Initial Purchasers, as soon as they have been prepared
by and are available to the Company, a copy of any unaudited interim financial statements of the
Company for any period subsequent to the period covered by the most recent financial statements
appearing in the Disclosure Package and the Final Offering Memorandum.

     (s) Agreement Not to Offer or Sell Additional Securities. During the period commencing on the
date hereof and ending on the 60th day following the date of the Final Offering Memorandum, none of
the Company or any of the Guarantors will, without the prior written consent of the Representative
(which consent may be withheld at the sole discretion of the Representative), directly or
indirectly, sell, offer, contract or grant any option to sell, pledge, transfer or establish an
open “put equivalent position” or liquidate or decrease a “call equivalent position” within the
meaning of Rule 16a-1(h) under the Exchange Act, or otherwise dispose of or transfer (or enter into
any transaction that is designed to, or might reasonably be expected to, result in the disposition
of), or announce the offering of, or file any registration statement under

 

19

the Securities Act in respect of, any shares of Common Stock, options or warrants to acquire
shares of the Common Stock or securities exchangeable or exercisable for or convertible into shares
of Common Stock (other than as contemplated by this Agreement with respect to the Notes);
provided, however, that the Company may issue shares of its Common Stock or options
to purchase its Common Stock, or Common Stock (i) upon conversion of the Company’s 5.75%
Convertible Notes due 2013, (ii) upon exercise of warrants that were issued concurrently with the
Company’s 5.75% Convertible Notes due 2013 or (iii) upon exercise of options, pursuant to any stock
option, stock bonus or other stock plan or arrangement described in the Disclosure Package and the
Final Offering Memorandum, but only if the holders of such shares, options, or shares issued upon
exercise of such options, agree in writing not to sell, offer, dispose of or otherwise transfer any
such shares or options (except forfeitures of Common Stock or options to purchase Common Stock by
the directors and executive officers subject to the lock-up agreement attached as Exhibit F
hereto to satisfy tax withholding obligations and, in the case of options exercises, payment of
exercise price, in connection with the vesting of equity awards acquired by directors and executive
officers pursuant to equity incentive plans existing and as in effect on the date of this Agreement
will be permitted, provided that the number of shares sold for consideration on the open
market or to any third party by all of the executive officers and directors of the Company who are
subject to the lock-up agreement does not in the aggregate exceed 200,000 shares of Common Stock)
during such 60-day period without the prior written consent of the Representative (which consent
may be withheld at the sole discretion of the Representative).

     (t) Future Reports to Stockholders. The Company will make available to its stockholders as
soon as practicable after the end of each fiscal year an annual report (including a balance sheet
and statements of income, stockholders’ equity and cash flows of the Company and its consolidated
subsidiaries certified by independent public accountants) and, as soon as practicable after the end
of each of the first three quarters of each fiscal year (beginning with the fiscal quarter ending
after the date of the Final Offering Memorandum), to make available to its stockholders
consolidated summary financial information of the Company and its subsidiaries for such quarter in
reasonable detail.

     (u) Future Reports to the Representative. During the period of five years hereafter, the
Company will furnish to the Representative (i) as soon as practicable after the end of each fiscal
year, copies of the Annual Report of the Company containing the balance sheet of the Company as of
the close of such fiscal year and statements of income, stockholders’ equity and cash flows for the
year then ended and the opinion thereon of the Company’s independent public or certified public
accountants; (ii) as soon as practicable after the filing thereof, copies of each proxy statement,
Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other
report filed by the Company with the Commission, FINRA or any securities exchange; and (iii) as
soon as available, copies of any report or communication of the Company mailed generally to holders
of its capital stock.

     (v) Investment Limitation. The Company shall not invest or otherwise use the proceeds
received by the Company from its sale of the Notes in such a manner as would require the Company or
any of its subsidiaries to register as an investment company under the Investment Company Act.

 

20

     (w) No Manipulation of Price. None of the Company or any of the Guarantors will take,
directly or indirectly, any action designed to cause or result in, or that has constituted or might
reasonably be expected to constitute, under the Exchange Act or otherwise, the stabilization or
manipulation of the price of any securities of the Company to facilitate the sale or resale of the
Notes.

     (x) Existing Lock-Up Agreements. The Company will enforce all existing agreements between the
Company and any of its security holders that prohibit the sale, transfer, assignment, pledge or
hypothecation of any of the Company’s securities in connection with the Company’s initial public
offering. In addition, the Company will direct the transfer agent to place stop transfer
restrictions upon any such securities of the Company that are bound by such existing “lock-up”
agreements for the duration of the periods contemplated in such agreements.

     (y) New Lock-Up Agreements. The Company will enforce all agreements between the Company and
any of its security holders to be entered into pursuant to this agreement that prohibit the sale,
transfer, assignment, pledge or hypothecation of any of the Company’s securities. In addition, the
Company will direct the transfer agent to place stop transfer restrictions upon any such securities
of the Company that are bound by such “lock-up” agreements for the duration of the periods
contemplated in such agreements.

     (z) Final Term Sheet. The Company will prepare a final term sheet, containing solely a
description of the Notes and the offering thereof, in the form approved by you and attached as
Schedule C hereto (the “Final Term Sheet”).

     Section 4. Payment of Expenses

     Each of the Company and the Guarantors, jointly and severally, agrees to pay all costs, fees
and expenses incurred in connection with the performance of its obligations hereunder and in
connection with the transactions contemplated hereby, including without limitation (i) all expenses
incident to the issuance and delivery of the Notes (including all printing and engraving costs),
(ii) all fees and expenses of the Trustee under the Indenture, (iii) all necessary issue, transfer
and other stamp taxes in connection with the issuance and sale of the Notes to the Initial
Purchasers, (iv) all fees and expenses of the Company’s and the Guarantors’ counsel, independent
public or certified public accountants and other advisors, (v) all costs and expenses incurred in
connection with the preparation, printing, shipping and distribution of the materials contained in
the Disclosure Package and the Final Offering Memorandum, all amendments and supplements thereto
and this Agreement, (vi) all filing fees, attorneys’ fees and expenses incurred by the Company, the
Guarantors or the Initial Purchasers in connection with qualifying or registering (or obtaining
exemptions from the qualification or registration of) all or any part of the Notes for offer and
sale under the state securities or blue sky laws or the provincial securities laws of Canada, and,
if requested by the Representative, preparing and printing a “Blue Sky Survey” or memorandum, and
any supplements thereto, advising the Initial Purchasers of such qualifications, registrations and
exemptions, (vii) the expenses of the Company, the Guarantors and the Initial Purchasers in
connection with the marketing and offering of the Notes, including all transportation and other
expenses incurred in connection with presentations to prospective purchasers of the Notes, except
that the Company and the Guarantors, on the one hand, and the Initial Purchasers, on the other
hand, will each pay 50% of the cost of privately chartered

 

21

airplanes used for such purposes and (viii) the fees and expenses associated with listing the
Conversion Shares on the Nasdaq Stock Market LLC. Except as provided in this Section 4, Section 7
and Section 11 hereof, the Initial Purchasers shall pay their own expenses, including the fees and
disbursements of their counsel.

     Section 5. Conditions of the Obligations of the Initial Purchasers

     The obligations of the several Initial Purchasers to purchase and pay for the Notes as
provided herein on the Closing Date shall be subject to the accuracy of the representations and
warranties on the part of the Company set forth in Section 1 hereof as of the date hereof and as of
the Closing Date as though then made to the accuracy of the statements of the Company made in any
certificates pursuant to the provisions hereof, to the timely performance by the Company and the
Guarantors of its covenants and other obligations hereunder, and to each of the following
additional conditions:

     (a) Accountants’ Comfort Letter. On the date hereof, the Representative shall have received
from KPMG LLP, independent public accountants for the Company, a letter dated the date hereof
addressed to the Initial Purchasers, the form of which is attached as Exhibit A.

     (b) No Material Adverse Change or Ratings Agency Change. For the period from and after the
date of this Agreement and prior to the Closing Date:

     (i) in the judgment of the Representative, there shall not have occurred any Material
Adverse Change;

     (ii) there shall not have been any change or decrease specified in the letter or
letters referred to in paragraph (a) of this Section 5 which is, in the sole judgment of the
Representative, so material and adverse as to make it impractical or inadvisable to proceed
with the offering or delivery of the Notes as contemplated by the Disclosure Package and the
Final Offering Memorandum; and

     (iii) there shall not have occurred any downgrading, nor shall any notice have been
given of any intended or potential downgrading or of any review for a possible change that
does not indicate the direction of the possible change, in the rating accorded any
securities of the Company or any of its subsidiaries by any “nationally recognized
statistical rating organization” as such term is defined for purposes of Rule 436(g)(2)
under the Securities Act.

     (c) Opinions of Counsel for the Company and the Guarantors. On the Closing Date, the
Representative shall have received the favorable opinion of (i) Sidley Austin LLP, counsel for the
Company and the Guarantors, the form of which is attached as Exhibit B, (ii) Leonard
Steinberg, General Counsel of the Company and the Guarantors, the form of which is attached as
Exhibit C, (iii) Birch Horton Bittner and Cherot, local Alaska counsel for the Company and
the Guarantors, the form of which is attached as Exhibit D and (iv) Karen Brinkmann,
special regulatory counsel for the Company and the Guarantors, the form of which is attached as
Exhibit E, each dated as of the Closing Date.

 

22

     (d) Opinion of Counsel for the Initial Purchasers. On the Closing Date, the Representative
shall have received the favorable opinion of Simpson Thacher & Bartlett LLP, counsel for the
Initial Purchasers, dated as of the Closing Date, in form and substance satisfactory to, and
addressed to, the Representative, with respect to the issuance and sale of the Notes, the
Disclosure Package, the Final Offering Memorandum and other related matters as the Representative
may reasonably require, and the Company shall have furnished to such counsel such documents as they
request for the purpose of enabling them to pass upon such matters.

     (e) Officers’ Certificate. On the Closing Date, the Representative shall have received a
written certificate executed by the Chairman of the Board, Chief Executive Officer or President of
each of the Company and the Guarantors and the Chief Financial Officer or Chief Accounting Officer
of each of the Company and the Guarantors, dated as of the Closing Date, to the effect that the
signers of such certificate have carefully examined the Disclosure Package and the Final Offering
Memorandum, any amendments or supplements thereto and this Agreement, to the effect set forth in
subsection (b)(iii) of this Section 5, and further to the effect that:

     (i) for the period from and after the date of this Agreement and prior to the Closing
Date, there has not occurred any Material Adverse Change with respect to the Company or such
Guarantor;

     (ii) the representations and warranties of the Company and the Guarantors set forth in
Section 1 of this Agreement are true and correct on and as of the Closing Date with the same
force and effect as though expressly made on and as of the Closing Date; and

     (iii) the Company and each Guarantor has complied with all the agreements hereunder and
satisfied all the conditions on its part to be performed or satisfied hereunder at or prior
to the Closing Date.

     (f) Bring-down Comfort Letter. On the Closing Date, the Representative shall have received
from KPMG LLP, independent public accountants for the Company, a letter dated such date, in form
and substance satisfactory to the Representative, to the effect that they reaffirm the statements
made in the letter furnished by them pursuant to subsection (a) of this Section 5, except that the
specified date referred to therein for the carrying out of procedures shall be no more than three
business days prior to the Closing Date.

     (g) Lock-Up Agreement from Certain Securityholders of the Company. On or prior to the date
hereof, the Company and the Guarantors shall have furnished to the Representative an agreement in
the form of Exhibit F hereto from each director and executive officer of the company listed
in Schedule D, and such agreement shall be in full force and effect on the Closing Date.

     (h) Listing. The Company and the Guarantors shall have caused the Conversion Shares to be
approved for listing, subject to notice of issuance, on the Nasdaq Stock Market LLC.

     (i) Additional Documents. On or before the Closing Date, the Representative and counsel for
the Initial Purchasers shall have received such information, documents and opinions

 

23

as they may reasonably require for the purposes of enabling them to pass upon the issuance and
sale of the Notes as contemplated herein, or in order to evidence the accuracy of any of the
representations and warranties, or the satisfaction of any of the conditions or agreements, herein
contained.

     If any condition specified in this Section 5 is not satisfied when and as required to be
satisfied, this Agreement may be terminated by the Representative by notice to the Company and the
Guarantors at any time on or prior to the Closing Date, which termination shall be without
liability on the part of any party to any other party, except that Section 4, Section 7, Section 8,
Section 9 and Section 14 shall at all times be effective and shall survive such termination.

     Section 6. Representations, Warranties and Agreements of the Initial Purchasers

     Each of the Initial Purchasers represents and warrants that it is a “qualified institutional
buyer”, as defined in Rule 144A of the Securities Act. Each Initial Purchaser agrees with the
Company that:

     (a) it has not offered or sold, and will not offer or sell, any Notes within the United States
or to, or for the account or benefit of, U.S. persons (x) as part of their distribution at any time
or (y) otherwise until one year after the later of the commencement of the offering and the date of
closing of the offering except to those it reasonably believes to be “qualified institutional
buyers” (as defined in Rule 144A under the Act);

     (b) neither it nor any person acting on its behalf has made or will make offers or sales of
the Notes in the United States by means of any form of general solicitation or general advertising
(within the meaning of Regulation D) in the United States;

     (c) in connection with each sale pursuant to Section 6(a)(i), it has taken or will take
reasonable steps to ensure that the purchaser of such Notes is aware that such sale is being made
in reliance on Rule 144A;

     (d) any information provided by the Initial Purchasers to publishers of publicly available
databases about the terms of the Notes and the Indenture shall include a statement that the Notes
have not been registered under the Act and are subject to restrictions under Rule 144A under the
Act;

     (e) it acknowledges that additional restrictions on the offer and sale of the Notes and the
Common Stock issuable upon conversion thereof are described in the Disclosure Package and the Final
Offering Memorandum.

     Section 7. Reimbursement of Initial Purchasers’ Expenses

     If this Agreement is terminated pursuant to Section 5 or Section 11, or if the sale to the
Initial Purchasers of the Notes on the Closing Date is not consummated because of any refusal,
inability or failure on the part of the Company or any Guarantor to perform any agreement herein or
to comply with any provision hereof, each of the Company and the Guarantors, jointly and severally,
agrees to reimburse the Representative and the other Initial Purchasers (or such Initial

 

24

Purchasers as have terminated this Agreement with respect to themselves), severally, upon
demand for all out-of-pocket expenses that shall have been reasonably incurred by the
Representative and the Initial Purchasers in connection with the proposed purchase and the offering
and sale of the Notes, including but not limited to fees and disbursements of counsel, printing
expenses, travel expenses, postage, facsimile and telephone charges.

     Section 8. Indemnification

     (a) Indemnification of the Initial Purchasers. Each of the Company and the Guarantors,
jointly and severally, agrees to indemnify and hold harmless each Initial Purchaser, its directors,
officers, employees and agents, and each person, if any, who controls any Initial Purchaser within
the meaning of the Securities Act or the Exchange Act against any loss, claim, damage, liability or
expense, as incurred, to which such Initial Purchaser, director, officer, employee, agent or
controlling person may become subject, insofar as such loss, claim, damage, liability or expense
(or actions in respect thereof as contemplated below) arises out of or is based upon any untrue
statement or alleged untrue statement of a material fact contained in the Disclosure Package, the
Final Offering Memorandum, the information contained in the Final Term Sheet or any other written
information used by or on behalf of the Company in connection with the offer or sale of the Notes
(or any amendment or supplement to the foregoing), or the omission or alleged omission therefrom of
a material fact, in each case, necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading, and to reimburse each Initial
Purchaser, its officers, directors, employees, agents and each such controlling person for any and
all expenses (including the fees and disbursements of counsel chosen by the Representative) as such
expenses are reasonably incurred by such Initial Purchaser, or its officers, directors, employees,
agents or such controlling person in connection with investigating, defending, settling,
compromising or paying any such loss, claim, damage, liability, expense or action;
provided, however, that the foregoing indemnity agreement shall not apply to any
loss, claim, damage, liability or expense to the extent, but only to the extent, arising out of or
based upon any untrue statement or alleged untrue statement or omission or alleged omission based
upon and in conformity with written information furnished to the Company and the Guarantors by any
Initial Purchaser through the Representative expressly for use in the Disclosure Package, the Final
Offering Memorandum, the Final Term Sheet or any other written information used by or on behalf of
the Company in connection with the offer or sale of the Notes (or any amendment or supplement
thereto), it being understood and agreed that the only such information furnished by any Initial
Purchaser consists of the information described as such in Section 8(b) hereof. The indemnity
agreement set forth in this Section 8(a) shall be in addition to any liabilities that the Company
and the Guarantors may otherwise have.

     (b) Indemnification of the Company, the Guarantors and their Directors and Officers. Each
Initial Purchaser agrees, severally and not jointly, to indemnify and hold harmless the Company and
each Guarantor, each of their respective directors, each of their respective officers and each
person, if any, who controls the Company or any such Guarantor within the meaning of the Securities
Act or the Exchange Act, against any loss, claim, damage, liability or expense, as incurred, to
which the Company, any such Guarantor, or any such director, officer or controlling person may
become subject, insofar as such loss, claim, damage, liability or expense (or actions in respect
thereof as contemplated below) arises out of or is based upon any untrue or alleged untrue
statement of a material fact contained in the Disclosure Package, the Final Offering

 

25

Memorandum, the information contained in the Final Term Sheet or any other written information
used by or on behalf of the Company and the Guarantors in connection with the offer or sale of the
Notes (or any amendment or supplement thereto), or arises out of or is based upon the omission or
alleged omission to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading, in each case to the extent, and only to the extent,
that such untrue statement or alleged untrue statement or omission or alleged omission was made in
the Disclosure Package, the Final Offering Memorandum, the Final Term Sheet or any other written
information used by or on behalf of the Company and the Guarantors in connection with the offer or
sale of the Notes (or any amendment or supplement thereto), in reliance upon and in conformity with
written information furnished to the Company and the Guarantors by the Representative expressly for
use therein; and to reimburse the Company, any such Guarantor, or any such director, officer or
controlling person for any legal and other expense reasonably incurred by the Company, any such
Guarantor, or any such director, officer or controlling person in connection with investigating,
defending, settling, compromising or paying any such loss, claim, damage, liability, expense or
action. Each of the Company and the Guarantors hereby acknowledges that the only information that
the Initial Purchasers have furnished to the Company and the Guarantors expressly for use in the
Disclosure Package, the Final Offering Memorandum, the Final Term Sheet or any other written
information used by or on behalf of the Company in connection with the offer or sale of the Notes
(or any amendment or supplement thereto) are the statements set forth in Schedule E. The
indemnity agreement set forth in this Section 8(b) shall be in addition to any liabilities that
each Initial Purchaser may otherwise have.

     (c) Notifications and Other Indemnification Procedures. Promptly after receipt by an
indemnified party under this Section 8 of notice of the commencement of any action, such
indemnified party will, if a claim in respect thereof is to be made against an indemnifying party
under this Section 8, notify the indemnifying party in writing of the commencement thereof, but the
failure to so notify the indemnifying party (i) will not relieve it from liability under paragraph
(a) or (b) above unless and to the extent it did not otherwise learn of such action and such
failure results in the forfeiture by the indemnifying party of substantial rights and defenses and
(ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified
party other than the indemnification obligation provided in paragraph (a) or (b) above. In case any
such action is brought against any indemnified party and such indemnified party seeks or intends to
seek indemnity from an indemnifying party, the indemnifying party will be entitled to participate
in, and, to the extent that it shall elect, jointly with all other indemnifying parties similarly
notified, by written notice delivered to the indemnified party promptly after receiving the
aforesaid notice from such indemnified party, to assume the defense thereof with counsel
satisfactory to such indemnified party; provided, however, if the defendants in any
such action include both the indemnified party and the indemnifying party and the indemnified party
shall have reasonably concluded that a conflict may arise between the positions of the indemnifying
party and the indemnified party in conducting the defense of any such action or that there may be
legal defenses available to it and/or other indemnified parties that are different from or
additional to those available to the indemnifying party, the indemnified party or parties shall
have the right to select separate counsel to assume such legal defenses and to otherwise
participate in the defense of such action on behalf of such indemnified party or parties. Upon
receipt of notice from the indemnifying party to such indemnified party of such indemnifying
party’s election so to assume the defense of such action and approval by the indemnified party of
counsel, the

 

26

indemnifying party will not be liable to such indemnified party under this Section 8 for any
legal or other expenses subsequently incurred by such indemnified party in connection with the
defense thereof unless (i) the indemnified party shall have employed separate counsel in accordance
with the proviso to the preceding sentence (it being understood, however, that the indemnifying
party shall not be liable for the expenses of more than one separate counsel (other than local
counsel), reasonably approved by the indemnifying party (or by the Representative in the case of
Section 8(b)), representing the indemnified parties who are parties to such action) or (ii) the
indemnifying party shall not have employed counsel satisfactory to the indemnified party to
represent the indemnified party within a reasonable time after notice of commencement of the
action, in each of which cases the fees and expenses of counsel shall be at the expense of the
indemnifying party.

     (d) Settlements. The indemnifying party under this Section 8 shall not be liable for any
settlement of any proceeding effected without its written consent, which shall not be withheld
unreasonably, but if settled with such consent or if there is a final judgment for the plaintiff,
the indemnifying party agrees to indemnify the indemnified party against any loss, claim, damage,
liability or expense by reason of such settlement or judgment. Notwithstanding the foregoing
sentence, if at any time an indemnified party shall have requested an indemnifying party to
reimburse the indemnified party for fees and expenses of counsel as contemplated by Section 8(c)
hereof, the indemnifying party agrees that it shall be liable for any settlement of any proceeding
effected without its written consent if (i) such settlement is entered into more than 30 days after
receipt by such indemnifying party of the aforesaid request and (ii) such indemnifying party shall
not have reimbursed the indemnified party in accordance with such request prior to the date of such
settlement. No indemnifying party shall, without the prior written consent of the indemnified
party, effect any settlement, compromise or consent to the entry of judgment in any pending or
threatened action, suit or proceeding in respect of which any indemnified party is or could have
been a party and indemnity was or could have been sought hereunder by such indemnified party,
unless such settlement, compromise or consent (x) includes an unconditional release of such
indemnified party from all liability on claims that are the subject matter of such action, suit or
proceeding and (y) 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.

     Section 9. Contribution

     If the indemnification provided for in Section 8 is for any reason unavailable to or otherwise
insufficient to hold harmless an indemnified party in respect of any losses, claims, damages,
liabilities or expenses referred to therein, then each indemnifying party shall contribute to the
aggregate amount paid or payable by such indemnified party, as incurred, as a result of any losses,
claims, damages, liabilities or expenses referred to therein (i) in such proportion as is
appropriate to reflect the relative benefits received by the Company and the Guarantors, on the one
hand, and the Initial Purchasers, on the other hand, from the offering of the Notes pursuant to
this Agreement or (ii) if the allocation provided by clause (i) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) above but also the relative fault of the Company and the Guarantors, on
the one hand, and the Initial Purchasers, on the other hand, in connection with the untrue
statements or omissions or alleged untrue statements or alleged omissions which resulted in such
losses, claims, damages, liabilities or expenses, as well as any other relevant equitable
considerations.

 

27

The relative benefits received by the Company and the Guarantors, on the one hand, and the
Initial Purchasers, on the other hand, in connection with the offering of the Notes pursuant to
this Agreement shall be deemed to be in the same respective proportions as the total net proceeds
from the offering of the Notes pursuant to this Agreement (before deducting expenses) received by
the Company and the Guarantors, and the total purchase discount received by the Initial Purchasers
bear to the aggregate initial offering price of the Notes. The relative fault of the Company and
the Guarantors, on the one hand, and the Initial Purchasers, on the other hand, shall be determined
by reference to, among other things, whether any such untrue or alleged untrue statement of a
material fact or omission or alleged omission to state a material fact relates to information
supplied by the Company and the Guarantors, on the one hand, or the Initial Purchasers, on the
other hand, and the parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission.

     The amount paid or payable by a party as a result of the losses, claims, damages, liabilities
and expenses referred to above shall be deemed to include, subject to the limitations set forth in
Section 8(c), any legal or other fees or expenses reasonably incurred by such party in connection
with investigating or defending any action or claim.

     The Company and the Guarantors, on the one hand, and the Initial Purchasers, on the other
hand, agree that it would not be just and equitable if contribution pursuant to this Section 9 were
determined by pro rata allocation or by any other method of allocation (even if the Initial
Purchasers were treated as one entity for such purpose) that does not take account of the equitable
considerations referred to in this Section 9.

     Notwithstanding the provisions of this Section 9, no Initial Purchaser shall be required to
contribute any amount in excess of the purchase discount or commission received by such Initial
Purchaser in connection with the Notes purchased by it hereunder. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent misrepresentation. The Initial
Purchasers’ obligations to contribute pursuant to this Section 9 are several, and not joint, in
proportion to their respective purchasing commitments as set forth opposite their names in
Schedule A. For purposes of this Section 9, each director, officer, employee and agent of
an Initial Purchaser and each person, if any, who controls an Initial Purchaser within the meaning
of the Securities Act and the Exchange Act shall have the same rights to contribution as such
Initial Purchaser, and each director of the Company or any Guarantor, each officer of the Company
or any Guarantor, and each person, if any, who controls the Company or any Guarantor within the
meaning of the Securities Act or the Exchange Act shall have the same rights to contribution as the
Company or any such Guarantor.

     Section 10. Default of One or More of the Several Initial Purchasers

     If, on the Closing Date, any one or more of the several Initial Purchasers shall fail or
refuse to purchase Notes that it or they have agreed to purchase hereunder on such date, and the
aggregate principal amount of Notes which such defaulting Initial Purchaser or Initial Purchasers
agreed but failed or refused to purchase does not exceed 10% of the aggregate principal amount of
the Notes to be purchased on such date, the other Initial Purchasers shall be obligated, severally,
in the proportions that the aggregate principal amount of Notes set forth opposite their

 

28

respective names on Schedule A bears to the aggregate principal amount of Notes set
forth opposite the names of all such non-defaulting Initial Purchasers, or in such other
proportions as may be specified by the Representative with the consent of the non-defaulting
Initial Purchasers, to purchase the Notes which such defaulting Initial Purchaser or Initial
Purchasers agreed but failed or refused to purchase on such date. If, on the Closing Date, any one
or more of the Initial Purchasers shall fail or refuse to purchase Notes and the aggregate
principal amount of Notes with respect to which such default occurs exceeds 10% of the aggregate
principal amount of Notes to be purchased on such date, and arrangements satisfactory to the
Representative, one the one hand, and the Company and the Guarantors, on the other hand, for the
purchase of such Notes are not made within 48 hours after such default, this Agreement shall
terminate without liability of any party to any other party except that the provisions of Section
4, Section 8 and Section 9 shall at all times be effective and shall survive such termination. In
any such case either the Representative, on the one hand, or the Company and the Guarantors, on the
other hand, shall have the right to postpone the Closing Date, but in no event for longer than
seven days in order that the required changes, if any, to the Final Offering Memorandum or any
other documents or arrangements may be effected.

     As used in this Agreement, the term “Initial Purchaser” shall be deemed to include any person
substituted for a defaulting Initial Purchaser under this Section 10. Any action taken under this
Section 10 shall not relieve any defaulting Initial Purchaser from liability in respect of any
default of such Initial Purchaser under this Agreement.

     Section 11. Termination of this Agreement

     This Agreement may be terminated in the absolute discretion of the Representative, by notice
to the Company, if after the execution and delivery of this Agreement and on or prior to the
Closing Date (i) trading generally shall have been suspended or materially limited on the Nasdaq
Stock Market LLC, the New York Stock Exchange or the over-the-counter market; (ii) trading of any
securities issued or guaranteed by the Company or any of the Guarantors shall have been suspended
on any exchange or in any over-the-counter market; (iii) a general moratorium on commercial banking
activities shall have been declared by federal or New York State authorities; or (iv) there shall
have occurred any outbreak or escalation of hostilities or any change in financial markets or any
calamity or crisis, either within or outside the United States, that, in the judgment of the
Representative, is material and adverse and makes it impracticable or inadvisable to proceed with
the offering, sale or delivery, of the Notes on the terms and in the manner contemplated by this
Agreement, the Disclosure Package and the Offering Memorandum. Any termination pursuant to this
Section 11 shall be without liability on the part of (a) the Company or any Guarantor to any
Initial Purchaser, except that the Company and the Guarantors shall be obligated to reimburse the
expenses of the Representative and the other Initial Purchasers pursuant to Sections 4 and 7 hereof
or (b) any Initial Purchaser to the Company or any Guarantor.

     Section 12. No Advisory or Fiduciary Responsibility

     Each of the Company and Guarantors acknowledges and agrees that: (i) the purchase and sale of
the Notes pursuant to this Agreement, including the determination of the offering price of the
Notes and any related discounts and commissions, is an arm’s-length commercial transaction

 

29

between the Company and the Guarantors, on the one hand, and the several Initial Purchasers,
on the other hand, and the Company and the Guarantors are capable of evaluating and understanding
and understands and accepts the terms, risks and conditions of the transactions contemplated by
this Agreement; (ii) in connection with each transaction contemplated hereby and the process
leading to such transaction each Initial Purchaser is and has been acting solely as a principal and
is not the financial advisor, agent or fiduciary of the Company, the Guarantors or their respective
affiliates, stockholders, creditors or employees or any other party; (iii) no Initial Purchaser has
assumed or will assume an advisory, agency or fiduciary responsibility in favor of the Company or
any Guarantor with respect to any of the transactions contemplated hereby or the process leading
thereto (irrespective of whether such Initial Purchaser has advised or is currently advising the
Company or any Guarantor on other matters) and no Initial Purchaser has any obligation to the
Company or any Guarantor with respect to the offering contemplated hereby except the obligations
expressly set forth in this Agreement; (iv) the several Initial Purchasers and their respective
affiliates may be engaged in a broad range of transactions that involve interests that differ from
those of the Company and the Guarantors and that the several Initial Purchasers have no obligation
to disclose any of such interests by virtue of any advisory, agency or fiduciary relationship; and
(v) the Initial Purchasers have not provided any legal, accounting, regulatory or tax advice with
respect to the offering contemplated hereby and each of the Company and the Guarantors has
consulted its own legal, accounting, regulatory and tax advisors to the extent it deemed
appropriate.

     This Agreement supersedes all prior agreements and understandings (whether written or oral)
among the Company, the Guarantors and the several Initial Purchasers, or any of them, with respect
to the subject matter hereof. Each of the Company and the Guarantors hereby waives and releases, to
the fullest extent permitted by law, any claims that the Company or any Guarantor may have against
the several Initial Purchasers with respect to any breach or alleged breach of agency or fiduciary
duty.

     Section 13. Research Analyst Independence

     Each of the Company and the Guarantors acknowledges that the Initial Purchasers’ research
analysts and research departments are required to be independent from their respective investment
banking divisions and are subject to certain regulations and internal policies, and that such
Initial Purchasers’ research analysts may hold views and make statements or investment
recommendations and/or publish research reports with respect to the Company, the Guarantors and/or
the offering that differ from the views of their respective investment banking divisions. Each of
the Company and the Guarantors hereby waives and releases, to the fullest extent permitted by law,
any claims that the Company or any Guarantor may have against the Initial Purchasers with respect
to any conflict of interest that may arise from the fact that the views expressed by their
independent research analysts and research departments may be different from or inconsistent with
the views or advise communicated to the Company or any Guarantor by the Initial Purchasers’
investment banking divisions. Each of the Company and the Guarantors acknowledges that each of the
Initial Purchasers is a full service securities firm and as such from time to time, subject to
applicable securities laws, may effect transactions for its own account or the account of its
customers and hold long or short positions in debt or equity securities of the companies that may
be the subject of the transactions contemplated by this Agreement.

 

30

     Section 14. Representations and Indemnities to Survive Delivery

     The respective indemnities, agreements, representations, warranties and other statements of
the Company and each Guarantor, of their respective officers and of the several Initial Purchasers
set forth in or made pursuant to this Agreement (i) will remain operative and in full force and
effect, regardless of any (A) investigation, or statement as to the results thereof, made by or on
behalf of any Initial Purchaser, the officers or employees of any Initial Purchaser, or any person
controlling the Initial Purchaser, the Company, any Guarantor, the officers or employees of the
Company or any Guarantor, or any person controlling the Company or any Guarantor, as the case may
be or (B) acceptance of the Notes and payment for them hereunder and (ii) will survive delivery of
and payment for the Notes sold hereunder and any termination of this Agreement.

     Section 15. Notices

     All communications hereunder shall be in writing and shall be mailed, hand delivered or
telecopied and confirmed to the parties hereto as follows:

If to the Representative:

J.P. Morgan Securities LLC

383 Madison Avenue

New York, New York 10179

Facsimile: 212-622-8358

Attention: Equity Syndicate Desk

with a Copy to:

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, New York 10017

Facsimile: 212-455-2502

Attention: Roxane Reardon

If to the Company or any Guarantor:

Alaska Communications Systems Group, Inc.

600 Telephone Avenue

Anchorage, Alaska 99503-6091

Facsimile: 907-297-3153

Attention: Leonard Steinberg

with a Copy to:

Sidley Austin LLP

787 Seventh Avenue

New York, NY 10019

 

31

Facsimile: 212-839-5599

Attention: Samir A. Gandhi

     Any party hereto may change the address for receipt of communications by giving written notice
to the others.

     Section 16. Successors and Assigns

     This Agreement will inure to the benefit of and be binding upon the parties hereto, including
any substitute Initial Purchasers pursuant to Section 10 hereof, and to the benefit of (i) the
Company and the Guarantors, their respective directors, any person who controls the Company or any
Guarantor within the meaning of the Securities Act or the Exchange Act, (ii) the Initial
Purchasers, the officers, directors, employees and agents of the Initial Purchasers and each
person, if any, who controls any Initial Purchaser within the meaning of the Securities Act or the
Exchange Act and (iii) the respective successors and assigns of any of the above, all as and to the
extent provided in this Agreement, and no other person shall acquire or have any right under or by
virtue of this Agreement. The term “successors and assigns” shall not include a purchaser of any of
the Notes from any of the several Initial Purchasers merely because of such purchase.

     Section 17. Partial Unenforceability

     The invalidity or unenforceability of any Section, paragraph or provision of this Agreement
shall not affect the validity or enforceability of any other Section, paragraph or provision
hereof. If any Section, paragraph or provision of this Agreement is for any reason determined to be
invalid or unenforceable, there shall be deemed to be made such minor changes (and only such minor
changes) as are necessary to make it valid and enforceable.

     Section 18. Governing Law Provisions

     (a) Governing Law Provisions. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

     (b) Consent to Jurisdiction. Any legal suit, action or proceeding arising out of or based
upon this Agreement or the transactions contemplated hereby may be instituted in the federal courts
of the United States of America located in the City and County of New York, Borough of Manhattan or
the courts of the State of New York in each case located in the City and County of New York,
Borough of Manhattan (collectively, the “Specified Courts”), and each party irrevocably submits to
the exclusive jurisdiction (except for proceedings instituted in regard to the enforcement of a
judgment of any such court, as to which such jurisdiction is non-exclusive) of such courts in any
such suit, action or proceeding. Service of any process, summons, notice or document by mail to
such party’s address set forth above shall be effective service of process for any suit, action or
other proceeding brought in any such court. The parties irrevocably and unconditionally waive any
objection to the laying of venue of any suit, action or other proceeding in the Specified Courts
and irrevocably and unconditionally waive and agree

 

32

not to plead or claim in any such court that any such suit, action or other proceeding brought
in any such court has been brought in an inconvenient forum.

     Section 19. General Provisions

     This Agreement constitutes the entire agreement of the parties to this Agreement and
supersedes all prior written or oral and all contemporaneous oral agreements, understandings and
negotiations with respect to the subject matter hereof. This Agreement may be executed in two or
more counterparts, each one of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument. This Agreement may not be amended or
modified unless in writing by all of the parties hereto, and no condition herein (express or
implied) may be waived unless waived in writing by each party whom the condition is meant to
benefit. The Section headings herein are for the convenience of the parties only and shall not
affect the construction or interpretation of this Agreement.

     Each of the parties hereto acknowledges that it is a sophisticated business person who was
adequately represented by counsel during negotiations regarding the provisions hereof, including,
without limitation, the indemnification provisions of Section 8 and the contribution provisions of
Section 9, and is fully informed regarding said provisions. Each of the parties hereto further
acknowledges that the provisions of Sections 8 and 9 hereto fairly allocate the risks in light of
the ability of the parties to investigate the Company, its affairs and its business in order to
assure that adequate disclosure has been made in the Disclosure Package and the Final Offering
Memorandum.

 

     If the foregoing is in accordance with your understanding of our agreement, kindly sign and
return to the Company and the Guarantors the enclosed copies hereof, whereupon this instrument,
along with all counterparts hereof, shall become a binding agreement in accordance with its terms.

	 	 	Very truly yours,

	 	 	 	 	 
	 	ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.

 	 
	 	By:  	/s/ Wayne Graham
 	 
	 	 	Name:  	Wayne Graham 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	ALASKA COMMUNICATIONS SYSTEMS HOLDINGS, INC.

 
	 	By:  	/s/ Wayne Graham
 	 
	 	 	Name:  	Wayne Graham 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	ACS OF ALASKA, INC.

 	 
	 	By:  	/s/ Wayne Graham
 	 
	 	 	Name:  	Wayne Graham 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	ACS OF ANCHORAGE, INC.

 	 
	 	By:  	/s/ Wayne Graham
 	 
	 	 	Name:  	Wayne Graham 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	ACS LONG DISTANCE, INC.

 	 
	 	By:  	/s/ Wayne Graham
 	 
	 	 	Name:  	Wayne Graham 	 
	 	 	Title:  	Chief Financial Officer 	 

	 	 	 	 	 
	 	ACS INFOSOURCE, INC.

 	 
	 	By:  	/s/ Wayne Graham
 	 
	 	 	Name:  	Wayne Graham 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	ACS OF THE NORTHLAND, INC.

 	 
	 	By:  	/s/ Wayne Graham
 	 
	 	 	Name:  	Wayne Graham 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	ACS OF FAIRBANKS, INC.

 	 
	 	By:  	/s/ Wayne Graham
 	 
	 	 	Name:  	Wayne Graham 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	ACS WIRELESS, INC.

 	 
	 	By:  	/s/ Wayne Graham
 	 
	 	 	Name:  	Wayne Graham 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	ACS INTERNET, INC.

 	 
	 	By:  	/s/ Wayne Graham
 	 
	 	 	Name:  	Wayne Graham 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	ACS CABLE SYSTEMS, INC.

 	 
	 	By:  	/s/ Wayne Graham
 	 
	 	 	Name:  	Wayne Graham 	 
	 	 	Title:  	Chief Financial Officer 	 

[Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 
	 	ACS SERVICES, INC.

 	 
	 	By:  	/s/ Wayne Graham
 	 
	 	 	Name:  	Wayne Graham 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	CREST COMMUNICATIONS CORPORATION

 	 
	 	By:  	/s/ Wayne Graham
 	 
	 	 	Name:  	Wayne Graham 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	ALASKA NORTHSTAR COMMUNICATIONS, LLC

 	 
	 	By:  	/s/ Wayne Graham
 	 
	 	 	Name:  	Wayne Graham 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	WCI LIGHTPOINT LLC

 	 
	 	By:  	/s/ Wayne Graham
 	 
	 	 	Name:  	Wayne Graham 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	WORLD NET COMMUNICATIONS, INC.

 	 
	 	By:  	/s/ Wayne Graham
 	 
	 	 	Name:  	Wayne Graham 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	ALASKA COMMUNICATIONS LLC

 	 
	 	By:  	/s/ Wayne Graham
 	 
	 	 	Name:  	Wayne Graham 	 
	 	 	Title:  	Chief Financial Officer 	 

	 	 	 	 	 
	 	ACS MESSAGING, INC.

 	 
	 	By:  	/s/ Wayne Graham
 	 
	 	 	Name:  	Wayne Graham 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	WCI CABLE, INC.

 	 
	 	By:  	/s/ Wayne Graham
 	 
	 	 	Name:  	Wayne Graham 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	WCIC HILLSBORO, LLC

 	 
	 	By:  	/s/ Wayne Graham
 	 
	 	 	Name:  	Wayne Graham 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	NORTHERN LIGHTS HOLDINGS, INC.

 	 
	 	By:  	/s/ Wayne Graham
 	 
	 	 	Name:  	Wayne Graham 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	ALASKA FIBER STAR, LLC

 	 
	 	By:  	/s/ Wayne Graham
 	 
	 	 	Name:  	Wayne Graham 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	ALASKA FIBER STAR CORPORATION

 	 
	 	By:  	/s/ Wayne Graham
 	 
	 	 	Name:  	Wayne Graham 	 
	 	 	Title:  	Chief Financial Officer 	 

[Signature Page to Purchase Agreement]

 

 

The foregoing Agreement is hereby confirmed and accepted by the Initial Purchasers as of the date
first above written.

J.P. MORGAN SECURITIES LLC

For itself and on behalf of the

several Initial Purchasers listed

in Schedule A hereto.

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Jeff Zajkowski
 	 
	 	 	Name:  	Jeff Zajkowski 	 
	 	 	Title:  	Managing Director 	 
	 

[Signature Page to Purchase Agreement]

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