Document:

Exhibit 4.1

Exhibit 4.1

EXECUTION COPY

Ciena Corporation,

as Issuer,

and

The Bank of New York Mellon,

as Trustee

INDENTURE

Dated as of March 15, 2010

4.0% Convertible Senior Notes due 2015

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 

	 	ARTICLE 1

Definitions and Incorporation by
Reference	 	 	 	 
	Section 1.01.

	 	Definitions
	 	 	1	 
	Section 1.02.

	 	Incorporation by Reference of Trust Indenture Act
	 	 	11	 
	Section 1.03.

	 	Rules of Construction
	 	 	12	 

ARTICLE 2

The Notes

	 	 	 	 	 	 	 
	Section 2.01.

	 	Form, Dating and Terms
	 	 	13	 
	Section 2.02.

	 	Execution and Authentication
	 	 	16	 
	Section 2.03.

	 	Registrar, Conversion Agent and Paying Agent
	 	 	17	 
	Section 2.04.

	 	Conversion Agent and Paying Agent to Hold Money and
Securities in Trust
	 	 	18	 
	Section 2.05.

	 	Holder Lists
	 	 	18	 
	Section 2.06.

	 	Transfer and Exchange; Restrictions on Transfer
	 	 	18	 
	Section 2.07.

	 	Mutilated, Destroyed, Lost or Stolen Notes
	 	 	22	 
	Section 2.08.

	 	Cancellation
	 	 	23	 
	Section 2.09.

	 	Payment of Interest; Defaulted Interest
	 	 	24	 
	Section 2.10.

	 	Additional Interest
	 	 	25	 
	Section 2.11.

	 	Computation of Interest
	 	 	26	 
	Section 2.12.

	 	CUSIP Numbers
	 	 	26	 
	Section 2.13.

	 	Calculations in Respect of the Notes
	 	 	26	 

ARTICLE 3

Covenants

	 	 	 	 	 	 	 
	Section 3.01.

	 	Payment of Notes
	 	 	26	 
	Section 3.02.

	 	Maintenance of Office or Agency
	 	 	27	 
	Section 3.03.

	 	Compliance Certificate
	 	 	27	 
	Section 3.04.

	 	Reservation of Common Stock
	 	 	28	 
	Section 3.05.

	 	Issuance of Shares
	 	 	28	 
	Section 3.06.

	 	Transfer Taxes
	 	 	28	 
	Section 3.07.

	 	Reports
	 	 	28	 

ARTICLE 4

Successors

	 	 	 	 	 	 	 
	Section 4.01.

	 	Merger, Consolidation, or Sale of Assets
	 	 	29	 
	Section 4.02.

	 	Successor Corporation Substituted
	 	 	29	 

 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page

ARTICLE 5

Redemption

	 	 	 	 	 	 	 
	Section 5.01.

	 	Right to Redeem; Notices to Trustee
	 	 	30	 
	Section 5.02.

	 	Selection of Notes to be Redeemed
	 	 	31	 
	Section 5.03.

	 	Notice of Redemption
	 	 	31	 
	Section 5.04.

	 	Effect of Notice of Redemption
	 	 	32	 
	Section 5.05.

	 	Deposit of Redemption Price
	 	 	32	 
	Section 5.06.

	 	Notes Redeemed in Part
	 	 	32	 
	Section 5.07.

	 	Purchase of Notes in Open Market
	 	 	33	 
	Section 5.08.

	 	Removal of Restrictive Legend
	 	 	33	 

ARTICLE 6

Conversion of Notes

	 	 	 	 	 	 	 
	Section 6.01.

	 	Conversion Right and Conversion Rate
	 	 	33	 
	Section 6.02.

	 	Conversion Consideration
	 	 	34	 
	Section 6.03.

	 	Exercise of Conversion Right
	 	 	34	 
	Section 6.04.

	 	Fractions of Shares
	 	 	36	 
	Section 6.05.

	 	Adjustment of Conversion Rate	 	 	36	 
	Section 6.06.

	 	Notice of Adjustments of Conversion Rate
	 	 	47	 
	Section 6.07.

	 	Cancellation of Converted Notes
	 	 	47	 
	Section 6.08.

	 	Provision in Case of Consolidation, Merger or Sale of Assets
	 	 	47	 
	Section 6.09.

	 	Rights Issued in Respect of Common Stock
	 	 	48	 
	Section 6.10.

	 	Responsibility of Trustee and Conversion Agent for Conversion Provisions
	 	 	49	 

ARTICLE 7

Defaults and Remedies

	 	 	 	 	 	 	 
	Section 7.01.

	 	Events of Default
	 	 	49	 
	Section 7.02.

	 	Acceleration
	 	 	52	 
	Section 7.03.

	 	Other Remedies
	 	 	53	 
	Section 7.04.

	 	Waiver of Past Defaults
	 	 	53	 
	Section 7.05.

	 	Control by Majority
	 	 	54	 
	Section 7.06.

	 	Limitation on Suits
	 	 	54	 
	Section 7.07.

	 	Rights of Holders of Notes to Receive Payment or Effect Conversion
	 	 	54	 
	Section 7.08.

	 	Collection Suit by Trustee
	 	 	55	 
	Section 7.09.

	 	Trustee May File Proofs of Claim
	 	 	55	 
	Section 7.10.

	 	Priorities
	 	 	55	 
	Section 7.11.

	 	Undertaking for Costs
	 	 	56	 

 

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	 	 	 	 	Page

ARTICLE 8

Trustee

	 	 	 	 	 	 	 
	Section 8.01.

	 	Duties of Trustee
	 	 	56	 
	Section 8.02.

	 	Rights of Trustee
	 	 	58	 
	Section 8.03.

	 	Individual Rights of Trustee
	 	 	59	 
	Section 8.04.

	 	Trustee’s Disclaimer
	 	 	60	 
	Section 8.05.

	 	Notice of Defaults
	 	 	60	 
	Section 8.06.

	 	Reports by Trustee to Holders
	 	 	60	 
	Section 8.07.

	 	Compensation and Indemnity
	 	 	60	 
	Section 8.08.

	 	Replacement of Trustee
	 	 	61	 
	Section 8.09.

	 	Successor Trustee by Merger
	 	 	62	 
	Section 8.10.

	 	Eligibility; Disqualification
	 	 	62	 
	Section 8.11.

	 	Preferential Collection of Claims Against Company
	 	 	63	 

ARTICLE 9

Satisfaction and Discharge of Indenture; Unclaimed Moneys

	 	 	 	 	 	 	 
	Section 9.01.

	 	Satisfaction and Discharge of Indenture
	 	 	63	 
	Section 9.02.

	 	Application of Funds or Securities Deposited for Payment of Notes
	 	 	63	 
	Section 9.03.

	 	Repayment by Trustee, Paying Agent or Conversion Agent
	 	 	63	 

ARTICLE 10

Supplemental Indentures and Amendments

	 	 	 	 	 	 	 
	Section 10.01.

	 	Without Consent of Holders
	 	 	64	 
	Section 10.02.

	 	With Consent of Holders
	 	 	65	 
	Section 10.03.

	 	Execution of Supplemental Indentures, Agreements and Waivers
	 	 	66	 
	Section 10.04.

	 	Effect of Supplemental Indentures
	 	 	66	 
	Section 10.05.

	 	Compliance with Trust Indenture Act
	 	 	67	 
	Section 10.06.

	 	Reference in Notes to Supplemental Indentures
	 	 	67	 
	Section 10.07.

	 	Revocation and Effect of Consents and Waivers
	 	 	67	 
	Section 10.08.

	 	Notation on or Exchange of Notes
	 	 	67	 

ARTICLE 11

Offer to Repurchase Upon a Fundamental Change

	 	 	 	 	 	 	 
	Section 11.01.

	 	Purchase of Notes at Option of Holder Upon a Fundamental Change
	 	 	68	 
	Section 11.02.

	 	Fundamental Change Repurchase Right Notice
	 	 	69	 
	Section 11.03.

	 	Fundamental Change Repurchase Notice
	 	 	69	 
	Section 11.04.

	 	Effect of Purchase of Notes Upon a Fundamental Change
	 	 	70	 
	Section 11.05.

	 	Covenant to Comply with Securities Laws Upon Purchase of Notes
	 	 	70	 
	Section 11.06.

	 	Covenants of Company and Paying Agent Upon Purchase of Notes
	 	 	71	 

 

iii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page

	 	 	 	 	 	 	 
	Section 11.07.

	 	Withdrawal of Fundamental Change Repurchase Notice and Effect Thereof
	 	 	71	 
	Section 11.08.

	 	Covenants of Trustee Upon Purchase of Notes
	 	 	72	 

ARTICLE 12

Miscellaneous

	 	 	 	 	 	 	 
	Section 12.01.

	 	Trust Indenture Act Controls
	 	 	72	 
	Section 12.02.

	 	Notices
	 	 	72	 
	Section 12.03.

	 	Communication by Holders with Other Holders
	 	 	73	 
	Section 12.04.

	 	Certificate and Opinion as to Conditions Precedent
	 	 	73	 
	Section 12.05.

	 	Statements Required in Certificate or Opinion
	 	 	73	 
	Section 12.06.

	 	When Notes Disregarded
	 	 	74	 
	Section 12.07.

	 	Rules by Trustee, Paying Agent and Registrar
	 	 	74	 
	Section 12.08.

	 	Governing Law
	 	 	74	 
	Section 12.09.

	 	No Recourse Against Others
	 	 	74	 
	Section 12.10.

	 	Successors
	 	 	74	 
	Section 12.11.

	 	Multiple Originals
	 	 	74	 
	Section 12.12.

	 	Force Majeure
	 	 	74	 
	Section 12.13.

	 	Not Responsible for Recitals or Issuance of Notes
	 	 	75	 
	Section 12.14.

	 	Waiver of Jury Trial
	 	 	75	 

	 	 	 
	EXHIBITS	 	 
	 
	 	 
	EXHIBIT A

	 	Form of Note
	 
	 	 
	EXHIBIT B

	 	Form of Conversion Notice
	 
	 	 
	EXHIBIT C

	 	Form of Fundamental Change Repurchase Notice

 

iv

 

INDENTURE, dated as of March 15, 2010, between Ciena Corporation, a corporation incorporated under
the laws of the State of Delaware (the “Company”), as issuer and The Bank of New York Mellon, a New
York banking corporation (the “Trustee”), as trustee.

RECITALS OF THE COMPANY

The Company has duly authorized the execution and delivery of this Indenture to provide for
the issuance of an unlimited principal amount of the Company’s 4.0% Convertible Senior Notes due
2015, convertible into common stock, par value $0.01 per share, of the Company (the “Notes”).

All things necessary have been done to make the Notes, when executed by the Company and
authenticated and delivered hereunder and duly issued by the Company, the valid and legally binding
obligations of the Company and to make this Indenture a valid and legally binding agreement of each
of the Company and the Trustee in accordance with the terms hereof.

Each party agrees as follows for the benefit of the other parties and for the equal and
ratable benefit of the Holders of the Notes:

ARTICLE 1

Definitions and Incorporation by Reference

Section 1.01. Definitions.

“Additional Interest” means all amounts, if any, payable pursuant to Section 2.10(a) or
Section 7.01, as applicable.

“Additional Notes” means additional Notes (other than the Initial Notes), if any, issued under
this Indenture in accordance with Section 2.02 hereof, as part of the same series as the Initial
Notes.

“Additional Shares” means additional shares of Common Stock by which the Conversion Rate shall
be increased for Notes surrendered for conversion pursuant to an adjustment of the Conversion Rate
upon the occurrence of a Make-whole Fundamental Change. The number of Additional Shares shall be
determined based on the Effective Date of the Make-whole Fundamental Change and the Stock Price in
such Make-whole Fundamental Change transaction, all in accordance with Section 6.05(e).

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

 

 

 

contract or otherwise; and the
terms “controlling” and “controlled” have meanings correlative to the foregoing. No individual
shall be deemed to be controlled by or under
common control with any specified Person solely by virtue of his or her status as an employee
or officer of such specified Person or of any other Person controlled by or under common control
with such specified Person. Notwithstanding the foregoing, for the purpose of Section 2.10,
“Affiliate” has the meaning set forth in Rule 144 under the Securities Act.

“Agent” means any Authenticating Agent, Registrar, co-registrar, Paying Agent, additional
paying agent or Conversion Agent.

“Agent Members” has the meaning set forth in Section 2.01(e)(ii).

“Applicable Procedures” means, with respect to any transfer or exchange of or for beneficial
interests in, or any repurchase, redemption or conversion of, any Global Note, the rules and
procedures of the Depositary that apply to such transfer, exchange, redemption, repurchase or
conversion.

“Authenticating Agent” has the meaning set forth in Section 2.02.

“Bankruptcy Law” means Title 11, United States Code or any similar federal or state law
relating to bankruptcy, insolvency, receivership, winding-up, liquidation, reorganization or relief
of debtors or the law of any other jurisdiction relating to bankruptcy, insolvency, receivership,
winding-up, liquidation, reorganization or relief of debtors or any amendment to, succession to or
change in any such law.

“Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 under the Exchange Act.
The terms “Beneficial Ownership” and “Beneficially Owns” have a corresponding meaning.

“Board of Directors” means the board of directors of the Company or any duly authorized
committee thereof.

“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 each day that is not a Saturday, Sunday or other day on which banking
institutions in New York City are authorized or required by law, regulation or executive order to
close.

“Capital Stock” means:

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

 

2

 

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

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

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

“close of business” means 5:00 p.m., New York City time.

“Closing Sale Price” means, with respect to the Common Stock or any other security for which a
Closing Sale Price must be determined, on any date, the last reported closing price per share of
Common Stock or unit of such security (or, if no last closing price is reported, the average of the
last bid and ask prices or, if more than one in either case, the average of the average bid and the
average ask prices) on such date as reported in composite transactions for the principal U.S.
securities exchange on which the Common Stock or such security is then listed or, if the Common
Stock or such security is not listed on a U.S. national or regional exchange, the “Closing Sale
Price” will be the last quoted bid price for the Common Stock in the over-the-counter market on the
relevant dates as reported by the Pink OTC Markets Inc. or any similar U.S. system of automated
dissemination of quotations of securities prices. If the Common Stock or such security is not so
traded, the “Closing Sale Price” will be the price as reported on the principal other market on
which the Common Stock or such security is then traded. In the absence of such quotations, the
Company’s Board of Directors will make a good faith determination of the Closing Sale Price.

“Commission” means the Securities and Exchange Commission.

“Common Stock” means the common stock of the Company, par value $0.01 per share, as it exists
on the date of this Indenture, subject to any transaction described in Section 6.08, in which case
all references to Common Stock in this Indenture shall thereafter be references to Reference
Property.

“Company” means Ciena Corporation, a corporation incorporated under the laws of Delaware, and,
subject to Article IV, its successors and assigns.

“Company Order” has the meaning set forth in Section 2.02.

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

(1) was a member of such board of directors on the date of this Indenture; or

(2) becomes a member of the board of directors of the Company subsequent to that date and was
appointed, nominated for election or elected to such board of directors

 

3

 

with the approval of (a) a
majority of the Continuing Directors who were members of such board of directors at the time of
such appointment, nomination or election, or (b) a majority of the Continuing Directors that were
serving at the time of such appointment, nomination or election on a committee of the board of
directors that appointed or nominated for election or reelection such board member.

“Conversion Agent” means the office or agency designated by the Company where Notes may be
presented for conversion, initially the Trustee.

“Conversion Date” has the meaning set forth in Section 6.03(a).

“Conversion Notice” has the meaning set forth in Section 6.03(a).

“Conversion Price” shall equal $1,000 divided by the Conversion Rate (rounded to the nearest
cent).

“Conversion Rate” has the meaning set forth in Section 6.01(c), subject to adjustment as
provided in this Indenture.

“Corporate Trust Office” means the designated corporate trust office of the Trustee at which
at any time its corporate trust business shall be administered, which office at the date hereof is
located at 101 Barclay Street, Floor 8W, New York, New York 10286, Attention: Corporate Trust
Administration, or such other address as the Trustee may designate from time to time by notice to
the Holders and the Company, or the designated corporate trust office of any successor Trustee (or
such other address as such successor Trustee may designate from time to time by notice to the
Holders and the Company).

“Current Market Price” as of any date means:

(1) for the purpose of any computation under Section 6.05(a) (except for clauses (v), (vi) and
(viii) thereof), the average of the Closing Sale Prices for the five consecutive Trading Days
ending on the Trading Day prior to the earlier of the record date or the ex-dividend date for the
event triggering such adjustment;

(2) for the purpose of any computation under Section 6.05(a)(v), the average of the Closing
Sale Prices of the Common Stock for the ten consecutive Trading Days following, and including the
ex-dividend date for the related Spin-Off;

(3) for the purpose of any computation under Section 6.05(a)(vi), the average of the Closing
Sale Prices for the five consecutive Trading Days ending on the Trading Day prior to the
ex-dividend date for the related cash distribution; and

(4) for the purpose of any computation under Section 6.05(a)(viii) (including Market
Capitalization), the average of the Closing Sale Prices for the five consecutive

 

4

 

Trading Days
beginning on the Trading Day immediately following the date of the repurchase triggering the
adjustment.

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

“Defaulted Interest” has the meaning set forth in Section 2.09.

“Definitive Notes” means the Notes that are in registered definitive form.

“Depositary” means The Depository Trust Company, its nominees and their respective successors
and assigns, or such other depositary institution hereinafter appointed by the Company.

“Distributed Assets” has the meaning set forth in Section 6.05(a)(iv).

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

“Equity Interests” means Capital Stock and all warrants, options or other rights to acquire
Capital Stock (but excluding any debt security that is convertible into, or exchangeable for,
Capital Stock).

“Event of Default” means any event or condition specified as such in Section 7.01.

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

“ex-dividend date” when used with respect to any issuance or distribution shall mean the first
date upon which a sale of shares of Common Stock does not automatically transfer the right to
receive the relevant dividend or distribution from the seller of such Common Stock to the buyer.

“Expiration Date” has the meaning set forth in Section 6.05(a)(vii).

“Fair Market Value” means the value that would be paid by a willing buyer to an unaffiliated
willing seller in a transaction not involving distress or necessity of either party, determined in
good faith by the Board of Directors of the Company.

“Fundamental Change” means the occurrence at the time after the Notes are originally issued of
any of the following:

(1) the Common Stock (or other Reference Property into which the Notes are convertible) is
neither traded on The NASDAQ Global Select Market, The NASDAQ Global Market, the New York Stock
Exchange or another U.S. national securities

 

5

 

exchange or quoted on an established automated
over-the-counter trading market in the United States; or

(2) any Person acquires Beneficial Ownership, directly or indirectly, through a purchase,
merger or other acquisition transaction or series of transactions, of shares of the Company’s
Capital Stock entitling such Person to exercise 50% or more of the total voting power of all shares
of the Company’s Capital Stock entitled to vote generally in elections of directors, other than an
acquisition by the Company, any of its Subsidiaries or any of the Company’s employee benefit plans;
or

(3) the Company merges or consolidates with or into any other Person (other than a Subsidiary
of the Company), another Person (other than a Subsidiary of the Company)
merges with or into the Company, or the Company conveys, sells, transfers or leases all or
substantially all of the Company’s assets to another Person, other than any transaction:

(a) that does not result in a reclassification, conversion, exchange or cancellation of the
Company’s outstanding Common Stock; or

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

(c) which is effected solely to change the Company’s jurisdiction of incorporation and results
in a reclassification, conversion or exchange of outstanding shares of the Common Stock solely into
shares of common stock of the surviving entity; or

(4) at any time the Continuing Directors do not constitute a majority of the Company’s Board
of Directors (or, if applicable, a successor Person to the Company).

For purposes of this definition, “Person” includes any syndicate or group that would be deemed
to be a “person” under Section 13(d)(3) of the Exchange Act.

“Fundamental Change Notice” has the meaning set forth in Section 11.01(c).

“Fundamental Change Repurchase Date” has the meaning set forth in Section 11.01(a).

“Fundamental Change Repurchase Notice” has the meaning set forth in Section 11.03.

“Fundamental Change Repurchase Price” has the meaning set forth in Section 11.01(a)

 

6

 

“Fundamental Change Repurchase Right Notice” has the meaning set forth in Section 11.02.

“GAAP” means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or in
such other statements by such other entity as may be approved by a significant segment of the
accounting profession of the United States, as in effect on the date hereof.

“Global Notes” means Notes that are in the form of the Note attached hereto as Exhibit A and
that are issued to a Depositary.

“guarantee” means, as applied to any obligation, (i) a guarantee (other than by endorsement of
negotiable instruments for collection in the ordinary course of business), direct or indirect, in
any manner, of any part or all of such obligation and (ii) an agreement, direct or indirect,
contingent or otherwise, the practical effect of which is to assure in any way the payment or
performance (or payment of damages in the event of non-performance) of all or any part of such
obligation. A guarantee shall include, without limitation, any agreement to maintain or preserve
any other Person’s financial condition or to cause any other Person to achieve certain levels of
operating results.

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

“Indebtedness” of any Person means indebtedness for borrowed money and indebtedness under
purchase money Liens or conditional sales or similar title retention agreements, in each case where
such indebtedness has been created, incurred, or assumed by such Person to the extent such
indebtedness would appear as a liability upon a balance sheet of such Person prepared in accordance
with GAAP, guarantees by such Person of such indebtedness, and indebtedness for borrowed money
secured by any Lien, pledge or other lien or encumbrance upon property owned by such Person, even
though such Person has not assumed or become liable for the payment of such indebtedness.

“Indenture” means this Indenture as amended or supplemented from time to time, including, for
all purposes of this instrument and any supplemental indenture or amendment hereto, the provisions
of the TIA that are deemed to be a part of and govern this instrument and any such supplemental
indenture or amendment, respectively.

“Initial Notes” means the $375,000,000 aggregate principal amount of Notes issued under this
Indenture on the date hereof.

“Interest Payment Date” has the meaning set forth in the form of Note attached hereto as
Exhibit A.

“Lien” means any security interest, pledge, lien or other encumbrance.

 

7

 

“Make-whole Fundamental Change” has the meaning set forth in Section 6.05(e).

“Make-whole Premium” means, with respect to each $1,000 in principal amount of Notes being
redeemed on a Redemption Date, a payment in cash equal to the present values of all remaining
scheduled payments of interest on such Notes had they remained Outstanding from such Redemption
Date to March 15, 2015 (excluding interest accrued to, but excluding, such Redemption Date, which
is otherwise paid pursuant to clause (ii) of the definition of Redemption Price), computed using a
discount rate equal to 2.75%.

“Market Capitalization” means the product of (1) the Current Market Price of the Common Stock
and (2) the number of shares of Common Stock then outstanding on the date of the repurchase of
Common Stock triggering the adjustment set forth in Section 6.05(a)(viii) hereof immediately prior
to such repurchase.

“Note” or “Notes” has the meaning stated in the first recital of this Indenture or, as the
case may be, means Notes that have been authenticated and delivered pursuant to this Indenture,
including the Global Note(s). The Initial Notes and the Additional Notes, if any, shall be treated
as a single class for all purposes under this Indenture, and unless the context otherwise requires,
all references to the Notes shall include the Initial Notes and any Additional Notes.

“Note Register” has the meaning set forth in Section 2.03.

“Notes Custodian” means the Trustee or any Person appointed by the Trustee to act as custodian
of Global Notes for the Depositary.

“Notice of Redemption” has the meaning set forth in Section 5.03.

“Officer” means an Executive Chairman of the Board, an Executive Vice President, a Senior Vice
President, the President, a Vice President, the Secretary, an Assistant Secretary, the Treasurer or
an Assistant Treasurer of the Company.

“Officers’ Certificate” means a certificate in a form reasonably acceptable to the Trustee and
signed by any two Officers of the Company. Each such certificate shall include the statements
provided for in Section 12.05, if and to the extent required by the provisions of Section 12.04.

“opening of business” means 9:00 a.m., New York City time.

“Opinion of Counsel” means a written opinion reasonably acceptable to the Trustee from legal
counsel; provided, however, that counsel that is an employee of, or counsel to, the Company shall
be acceptable to the Trustee. Each such opinion shall include the statements provided for in
Section 12.05, if and to the extent required by the provisions of Section 12.04.

 

8

 

“Outstanding”, when used with respect to Notes, means, as of the date of determination, all
Notes theretofore authenticated and delivered under this Indenture, except:

(1) Notes theretofore cancelled by the Trustee or delivered to the Trustee for cancellation
(including Notes converted and cancelled pursuant to this Indenture);

(2) Notes for whose payment money in the necessary amount has been theretofore deposited with
the Trustee or any Paying Agent (other than the Company) in trust or set aside and segregated in
trust by the Company (if the Company shall act as its own Paying Agent) for the Holders of such
Notes; and

(3) Notes which have been paid pursuant to Section 2.07 or in exchange for or in lieu of which
other Notes have been authenticated and delivered pursuant to this Indenture, other than any such
Notes in respect of which there shall have been presented to the Trustee proof satisfactory to it
that such Notes are held by a bona fide purchaser in whose hands such Notes are valid obligations
of the Company;

provided, however, that in determining whether the Holders of the requisite principal amount of the
Outstanding Notes have given, made or taken any request, demand, authorization, direction, notice,
consent, waiver or other action hereunder, Notes owned by the Company or any other obligor upon the
Notes or any Affiliate of the Company or of such other obligor shall be disregarded and deemed not
to be Outstanding, except that, in determining whether the Trustee shall be protected in relying
upon any such request, demand, authorization, direction, notice, consent, waiver or other action,
only Notes which a Responsible Officer of the Trustee actually knows to be so owned shall be so
disregarded. Notes so owned which have been pledged in good faith may be regarded as Outstanding if
the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with
respect to such Notes and that the pledgee is not the Company or any other obligor upon the Notes
or any Affiliate of the Company or of such other obligor.

Upon the written 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
by, held by or for the account of the Company, or any other obligor on the Notes or any Affiliate
of the Company or such obligor, and subject to the provisions of Section 8.02, 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.

“Paying Agent” means the office or agency designated by the Company where Notes may be
presented for payment, initially the Trustee.

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

 

9

 

organization, government or any
agency or political subdivision thereof or any other entity.

“protected purchaser” has the meaning set forth in Section 2.07.

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

“Redemption Date” means the date specified for redemption of the Notes in accordance with the
terms of the Notes and Article 5.

“Redemption Price” has the meaning set forth in Section 5.01(b).

“Reference Property” has the meaning set forth in Section 6.08.

“Registrar” means the office or agency maintained by the Company where Notes may be presented
for registration of transfer or exchange, initially the Trustee.

“Regular Record Date” has the meaning set forth in the form of Note attached hereto as Exhibit
A.

“Reporting Default” has the meaning set forth in Section 7.01.

“Repurchase Premium” has the meaning set forth in Section 6.05(a)(viii).

“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 set forth in Section 2.06(c).

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

“Settlement” has the meaning set forth in Section 6.03(c).

“Special Interest Payment Date” has the meaning set forth in Section 2.09(a).

“Special Record Date” has the meaning set forth in Section 2.09(a).

“Spin-off” has the meaning set forth in Section 6.05(a)(v).

 

10

 

“Stated Maturity,” when used with respect to the Notes, means March 15, 2015.

“Stock Price” means, with respect to a Make-whole Fundamental Change, the price paid per share
of Common Stock in such Make-whole Fundamental Change; provided that (1) if holders of Common Stock
receive only cash in such Make-whole Fundamental Change, the Stock Price will be the cash amount
paid per share of Common Stock and (2) in any other Make-whole Fundamental Change, the Stock Price
will be the average of the Closing Sale Prices on each of the five consecutive Trading Days prior
to but not including the Effective Date of such Make-whole Fundamental Change.

“Subsidiary” means any corporation or other business entity of which at least a majority of
the outstanding stock or membership or other interest, as the case may be, having voting power
under ordinary circumstances to elect a majority of the board of directors, managers or other
governing body of such corporation or business entity or otherwise direct the business and affairs
of said corporation or business entity is at the time owned or controlled by the Company, or by the
Company and one or more Subsidiaries, or by any one or more Subsidiaries.

“TIA” or “Trust Indenture Act” means the Trust Indenture Act of 1939 (15 U.S.C. §§
77aaa-77bbbb), as in effect from time to time.

“Trading Day” means a day during which trading in securities generally occurs on The NASDAQ
Global Select Market, or, if the Common Stock is not then traded on
The NASDAQ Global Select Market, then on The New York Stock Exchange, The NASDAQ Global Market
or another national or regional securities exchange on which the Common Stock is then listed or, if
the Common Stock is not listed on a national or regional securities exchange, on the principal
other market on which the Common Stock is then traded or quoted. If the Common Stock is not so
listed, traded or quoted, then “Trading Day” shall have the same meaning as “Business Day.”

“transfer” shall have the meaning set forth in Section 2.06(c).

“Trigger Event” has the meaning set forth in Section 6.05(a)(iv).

“Trustee” means the Person identified as “Trustee” in the first paragraph hereof and, subject
to the provisions of Article VIII, shall also include any successor trustee.

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

Section 1.02. Incorporation by Reference of Trust Indenture Act.

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

 

11

 

“indenture securities” means the Notes.

“indenture security holder” means a Holder.

“indenture to be qualified” means this Indenture.

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

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

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

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

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

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

(3) “or” is not exclusive;

(4) words in the singular include the plural and words in the plural include the singular;

(5) the principal amount of any non-interest bearing or other discount security at any date
shall be the principal amount thereof that would be shown on a balance sheet of the issuer dated
such date prepared in accordance with GAAP;

(6) the table of contents and headings of the Articles and Sections of this Indenture have
been inserted for convenience of reference only, are not intended to be considered a part hereof
and shall not modify or restrict any of the terms or provisions hereof;

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

(8) all references to “$” or “dollars” shall refer to the lawful currency of the United States
of America;

(9) the words “include,” “included” and “including” as used herein shall be deemed in each
case to be followed by the phrase “without limitation,” if not expressly followed by such phrase or
the phrase “but not limited to”;

 

12

 

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

(11) any reference to a Section or Article refers to such Section or Article of this Indenture
unless otherwise indicated; and

(12) all references to “interest” shall be deemed to include Additional Interest, if any,
payable pursuant to Section 2.10(a) or Section 7.01.

ARTICLE 2

The Notes

Section 2.01. Form, Dating and Terms.

(a) The Notes shall be known and designated as 4.0% Convertible Senior Notes due 2015.
Pursuant to the provisions of Article VI, the Notes shall be convertible into Common Stock. Subject
to the terms of this Indenture the Company may, at its option, without consent from the Holders,
issue Additional Notes from time to time in the future with the same terms and the same CUSIP
number as the Initial Notes offered in an unlimited principal amount; provided that such Additional
Notes must be part of the same issue as the Initial Notes for U.S. federal income tax purposes. For
all purposes under this Indenture, the term “Notes” shall include the Initial Notes and any such
Additional Notes issued after the date of this Indenture.

Notes may be authenticated and delivered upon registration or transfer of, or in lieu of,
other Notes pursuant to Section 2.06, 2.07 or 10.08.

The Notes may have notations, legends or endorsements required by law, stock exchange rule or
usage, in addition to those set forth on Exhibit A. The Company and the Trustee shall approve the
forms of the Notes and any notation, endorsement or legend on them. Each Note shall be dated the
date of its authentication. The terms of the Note set forth in Exhibit A are part of the terms of
this Indenture and, to the extent applicable, the Company and the Trustee, by their execution and
delivery of this Indenture, expressly agree to be bound by such terms.

The principal of and interest on the Notes shall be payable at the office or agency of the
Company maintained for such purpose in New York City, which shall initially be the Trustee as set
forth in Section 2.03. At the Company’s option, however, the Company may make such payments by
mailing a check to the registered address of each Holder thereof as such address as shall appear on
the Note Register; provided that Notes represented by a Global Note will be paid by wire transfer
of immediately available funds to the accounts specified by the Depositary in accordance with the
settlement procedures of the Depositary, and all other Notes with an aggregate principal amount in
excess of

 

13

 

$2.0 million will be paid by wire transfer of immediately available funds if the Holders
have provided wire transfer instructions at least 10 Business Days prior to the payment date to the
Company or the Paying Agent. If a payment date is a date other than a Business Day, payment may be
made at that place on the next succeeding day that is a Business Day. The payment made on the next
succeeding Business Day shall be treated as though it were paid on the original due date and no
interest shall accrue for the intervening period.

(b) The Notes shall be initially issued in the form of one or more permanent Global Notes,
without interest coupons, substantially in the form of Exhibit A. Such Global Notes shall be
deposited on behalf of the purchasers of the Notes represented thereby with the Notes Custodian for
the Depositary for the accounts of participants in the Depositary, duly executed by the Company and
authenticated by the Trustee as hereinafter provided. The aggregate principal amount of a Global
Note may from time to time be increased or decreased by adjustments made on the records of the
Notes Custodian, as hereinafter provided.

(c) The Notes shall be issuable only in fully registered form, without coupons, and only in
denominations of $2,000 or in integral multiples of $1,000 in excess thereof.

(d) Each Global Note shall bear the following legend:

“THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION (“DEPOSITARY”), OR A NOMINEE OF THE DEPOSITARY, WHICH MAY BE TREATED BY THE
COMPANY, THE TRUSTEE AND ANY AGENT THEREOF AS THE OWNER AND HOLDER OF THIS SECURITY FOR ALL
PURPOSES. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITARY TO THE COMPANY OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITARY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART,
BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE

 

14

 

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 TRANSFERS OF PORTIONS
OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.”

(e) The following book-entry provisions shall apply to Global Notes deposited with the Notes
Custodian:

(i) Each Global Note initially shall (x) be registered in the name of the Depositary
for such Global Note or the nominee of such Depositary and (y) be delivered to the Notes
Custodian.

(ii) Except as provided herein, members of, or participants in, the Depositary (“Agent
Members”) shall have no rights under this Indenture with respect to any Global Note held on
their behalf by the Depositary or by the Notes Custodian or under such Global Note, and the
Depositary may be treated by the Company, the Trustee, the Notes Custodian and any agent of
the Company or the Trustee as the absolute owner of such Global Note for all purposes
whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company, the
Trustee or any agent of the Company or the Trustee from giving effect to any written
certification, proxy or other authorization furnished by the Depositary or impair, as
between the Depositary and its Agent Members, the operation of customary practices of the
Depositary governing the exercise of the rights of a Beneficial Owner of an interest in any
Global Note.

(iii) The registered Holder of a Global Note may grant proxies and otherwise authorize
any Person, including Agent Members and Persons that may hold interests through Agent
Members, to take any action that a Holder is entitled to take under this Indenture or the
Notes.

(iv) In connection with the transfer of an entire Global Note to Beneficial Owners
pursuant to Section 2.01(f), such Global Note shall be deemed to be surrendered to the
Trustee for cancellation, and the Company shall execute, and the Trustee shall authenticate
and deliver, to each Beneficial Owner identified by the Depositary in exchange for its
beneficial interest in such Global Note, an equal aggregate principal amount of Definitive
Notes of authorized denominations. The definitive securities shall be printed, lithographed
or engraved or produced by any combination of these methods, if required by any securities
exchange on which the Notes may be listed, on a steel engraved border or steel engraved
borders or may be produced in any other manner permitted by the rules of any securities
exchange on which the Notes may be listed, all as

 

15

 

determined by the officers executing such
Notes, as evidenced by their execution of such Notes.

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

(f) Owners of beneficial interests in Global Notes will not be entitled to receive Definitive
Notes; provided, however, Definitive Notes shall be transferred to all Beneficial Owners in
exchange for their beneficial interests in a Global Note if (i) the Depositary notifies the Company
that it is unwilling or unable to continue as depositary for such Global Note, (ii) the Depositary
ceases to be a clearing agency registered under the Exchange Act, at a time when the Depositary is
required to be so registered in order to act as Depositary, or (iii) an Event of Default has
occurred. The Company shall promptly deliver a copy of any notice referred to in the foregoing
sentence to the Trustee.

Section 2.02. Execution and Authentication.

An Officer shall sign the Notes for the Company by manual or facsimile signature. If an
Officer whose signature is on a Note no longer holds that office at the time the Trustee
authenticates the Note, the Note shall be valid nevertheless.

A Note shall not be valid until an authorized signatory of the Trustee manually authenticates
the Note. The signature of the Trustee on a Note shall be conclusive evidence that such Note has
been duly and validly authenticated and issued under this Indenture.

The Trustee will, upon receipt of a written order of the Company signed by an Officer of the
Company (a “Company Order”), authenticate Notes, including any Additional Notes, in an unlimited
aggregate principal amount, subject to the provisions of this Indenture. Each Company Order will
specify the amount of Notes to be authenticated, the date on which the Notes are to be
authenticated and, in the case of Additional Notes, the issue price of such Notes.

The Trustee may appoint an agent (the “Authenticating Agent”) reasonably acceptable to the
Company to authenticate the Notes. Unless limited by the terms of such appointment, any such
Authenticating Agent may authenticate Notes whenever the Trustee may do so. Each reference in this
Indenture to authentication by the Trustee includes authentication by such Authenticating Agent.

In case the Company pursuant to Article 4 shall be consolidated or merged with or into any
other Person or shall convey, transfer, lease or otherwise dispose of its properties

 

16

 

and assets
substantially as an entirety to any Person, and the successor Person resulting from such
consolidation, or surviving such merger, or into which the Company shall have been merged, or the
Person that shall have received a conveyance, transfer, lease or other disposition as aforesaid,
shall have executed an indenture supplemental hereto with the Trustee pursuant to Article 4, any of
the Notes authenticated or delivered prior to such consolidation, merger, conveyance, transfer,
lease or other disposition may, from time to time, at the request of the successor Person, be
exchanged for other Notes executed in the name of the successor Person with such changes in
phraseology and form as may be appropriate, but otherwise in substance of like tenor as the Notes
surrendered for such exchange and of like principal amount; and the Trustee, upon Company Order of
the successor Person, shall authenticate and deliver Notes as specified in such order for the
purpose of such exchange. If Notes shall at any time be authenticated and delivered in any new name
of a successor Person pursuant to this Section 2.02 in exchange or substitution for or upon
registration of transfer of any Notes, such successor Person, at the option of the Holders but
without expense to them, shall provide for the exchange of all Notes at the time Outstanding for
Notes authenticated and delivered in such new name.

Section 2.03. Registrar, Conversion Agent and Paying Agent.

The Trustee shall initially serve as the Registrar, Conversion Agent and Paying Agent for the
Notes. The Registrar, the Conversion Agent and the Paying Agent shall each maintain an office or
agency in the Borough of Manhattan, New York City. The Registrar shall keep a register of the Notes
and of their transfer and exchange (the “Note Register”). The Company may have one or more
co-registrars and one or more additional conversion agents and paying agents. The term Paying Agent
includes any additional paying agents, the term Conversion Agent includes any additional conversion
agents and the term Registrar includes any co-registrar. The Company may appoint and change any
Paying Agent, Conversion Agent or Registrar without prior notice to any Holder.

The Company shall enter into an appropriate agency agreement with any Registrar, Conversion
Agent or Paying Agent not a party to this Indenture, which shall incorporate the terms of the TIA.
The agreement shall implement the provisions of this Indenture that relate to such agent. The
Company shall notify the Trustee in writing of the name and address of each such agent. If the
Company fails to maintain a Registrar, Conversion Agent or Paying Agent, the Trustee shall act as
such and shall be entitled to appropriate compensation therefor pursuant to Section 8.07. The
Company or any of its domestically incorporated Subsidiaries may act as Paying Agent, Conversion
Agent or Registrar.

The Company may remove any Registrar, Conversion Agent or Paying Agent upon written notice to
such Registrar, Conversion Agent or Paying Agent and to the Trustee; provided, however, that no
such removal shall become effective until (i) acceptance of any appointment by a successor as
evidenced by an appropriate agreement entered into by the Company and such successor Registrar,
Conversion Agent or Paying Agent, as the case may be, and such agreement is delivered to the
Trustee or (ii)

 

17

 

notification to the Trustee that the Trustee shall serve as Registrar, Conversion
Agent or Paying Agent until the appointment of a successor in accordance with clause (i) above. The
Registrar, Conversion Agent or Paying Agent may resign at any time upon written notice to the
Company and the Trustee.

Section 2.04. Conversion Agent and Paying Agent to Hold Money and Securities in Trust.

Except as otherwise provided herein, on or prior to 10:00 a.m. (New York City time) on each
due date of payment or settlement date of conversion in respect of any Note, the Company shall
deposit with the Paying Agent or Conversion Agent, as applicable, a sum of money (in immediately
available funds) and any property due upon conversion sufficient to make such payments or
conversion when due. The Company shall require each Paying Agent or Conversion Agent (other than
the Trustee) to agree in writing that such Paying Agent or Conversion Agent shall hold in trust for
the benefit of Holders or the Trustee all money or property held by such Paying Agent or Conversion
Agent for the payment of principal of, interest on, and other payments and conversion in respect of
the Notes, and shall notify the Trustee in writing of any default by the Company in making any such
payment or conversion. If the Company or a Subsidiary acts as Paying Agent or Conversion Agent, it
shall segregate the money or property held by it as Paying Agent or Conversion Agent and hold it as
a separate trust fund for the benefit of the Holders of the Notes. The Company at any time may
require a Paying Agent or Conversion Agent (other than the Trustee) to pay all money or property
held by it to the Trustee and to account for any funds disbursed by such Paying Agent or Conversion
Agent. Upon complying with this Section 2.04, the Paying Agent or Conversion Agent (if other than
the Company or a Subsidiary) shall have no further liability for the money or property delivered to
the Trustee. Upon any bankruptcy, reorganization or similar proceeding with respect to the Company,
the Trustee shall serve as Paying Agent and Conversion Agent for the Notes.

Section 2.05. Holder Lists.

The Trustee shall preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of Holders and shall otherwise comply with TIA §
312(a). If the Trustee is not the Registrar or to the extent otherwise required under the TIA, the
Company, on its own behalf, shall furnish to the Trustee, in writing at least seven Business Days
before each Interest Payment Date and at such other times as the Trustee may reasonably request in
writing within 15 days, a list in such form and as of such date as the Trustee may reasonably
require of the names and addresses of Holders and the Company shall otherwise comply with TIA §
312(a).

Section 2.06. Transfer and Exchange; Restrictions on Transfer.

(a) The Registrar shall retain copies of all letters, notices and other written communications
received pursuant to Section 2.01 or this Section 2.06 until the Notes have matured and been paid
in full. The Company shall have the right to inspect and

 

18

 

make copies of all such letters, notices
or other written communications at any reasonable time during regular business hours upon the
giving of reasonable prior written notice to the Registrar.

(b) The following obligations with respect to transfers and exchanges of Notes shall apply:

(i) To permit registrations of transfers and exchanges, the Company shall, subject to
the other terms and conditions of this Article II, execute and the Trustee shall upon
receipt of a Company Order, authenticate Definitive Notes and Global Notes at the
Registrar’s request.

(ii) No service charge shall be made to a Holder for any registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any transfer
tax, assessments or similar governmental charge payable in connection therewith (other than
any such transfer taxes, assessments or similar governmental charges payable upon exchange
or transfer pursuant to Section 3.06).

(iii) In the case of any redemption of less than all Outstanding Notes, the Registrar
shall not be required to register the transfer of or exchange of any Note (A) for a period
beginning at the opening of business 15 days before any selection of Notes for repurchase
and ending at the close of business on the day notice of such repurchase is deemed to have
been given to all Holders of Notes to be so repurchased or (B) selected for repurchase in
whole or in part, except the unredeemed portion of any Notes being redeemed in part.

(iv) Except as provided herein, prior to the due presentation for registration of
transfer of any Note, the Company, the Trustee, Paying Agent, the Conversion Agent or the
Registrar may deem and treat the Person in whose name a Note is registered as the absolute
owner of such Note for the purpose of receiving payment of principal of and interest on
such Note and for all other purposes whatsoever, whether or not such Note is overdue, and
none of the Company, the Trustee, the Paying Agent, the Conversion Agent or the Registrar
shall be affected by notice to the contrary.

(v) All Notes issued upon any transfer or exchange pursuant to the terms of this
Indenture shall evidence the same debt and shall be entitled to the same benefits under
this Indenture as the Notes surrendered upon such transfer or exchange.

(c) Every Note that bears or is required under this Section 2.06(c) to bear the legend set
forth in this Section 2.06(c) (together with any Common Stock issued upon
conversion of the Notes and required to bear the legend set forth in Section 2.06(d),
collectively, as used in this Section 2.06(c), the “Restricted Securities”) shall be subject

 

19

 

to the
restrictions on transfer set forth in this Section 2.06(c) (including those set forth in the legend
set forth below) unless such restrictions on transfer shall be 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(c) and Section
2.06(d), the term “transfer” encompasses any sale, pledge, loan, transfer or other disposition
whatsoever of any Restricted Security.

Until the 365th day following the original issuance of the Notes, any certificate
evidencing a 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(d), if applicable) shall bear the legend in substantially the following form as set
out in this Section 2.06(c), unless such Note has been sold pursuant to a registration statement
that has been declared effective under the Securities Act (and which continues to be effective at
the time of such transfer), or sold pursuant to 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 written notice thereof to the Trustee.

THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND THIS SECURITY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE
OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS SECURITY
IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM
THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.

THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS SECURITY
MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) TO A PERSON WHOM THE
SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II)
PURSUANT TO ANY OTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT,
INCLUDING RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) SUBJECT TO THE ISSUER’S AND THE
TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO THIS CLAUSE (II) TO
REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION
SATISFACTORY TO EACH OF THEM, (III) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OR (IV) TO THE COMPANY OR ANY OF ITS SUBSIDIARIES, IN

 

20

 

EACH OF CASES (I) THROUGH (IV) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY
STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS
REQUIRED TO, NOTIFY ANY SUBSEQUENT PURCHASER OF THIS SECURITY FROM IT OF THE RESALE
RESTRICTIONS REFERRED TO IN (A) ABOVE.

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 or as to conditions for
removal of the foregoing legend set forth therein have been satisfied may, upon surrender of such
Note for exchange to the 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(c).

(d) Until the 365th day following the original issuance of the Notes, any stock
certificate representing Common Stock issued upon conversion of any Note shall bear a legend in
substantially the following form, unless such Common Stock has been sold pursuant to a registration
statement that has been declared effective under the Securities Act (and which continues to be
effective at the time of such transfer) or such Common Stock has been issued upon conversion of
Notes that are not required to bear the legend set forth in 2.06(c) above, or such Common Stock has
been sold 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
written notice thereof to the transfer agent:

THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND THIS SECURITY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE
OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS SECURITY
IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM
THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.

THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS SECURITY
MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) TO A PERSON WHOM THE
SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II)
PURSUANT TO ANY OTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT,

 

21

 

INCLUDING RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) SUBJECT TO THE ISSUER’S AND THE
TRUSTEE’S RIGHT PRIOR TO
ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO THIS CLAUSE (II) TO REQUIRE THE DELIVERY OF AN
OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM,
(III) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR (IV) TO
THE COMPANY OR ANY OF ITS SUBSIDIARIES, IN EACH OF CASES (I) THROUGH (IV) IN ACCORDANCE
WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER
WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY SUBSEQUENT PURCHASER OF THIS
SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

Any such Common Stock as to which such restrictions on transfer shall have expired in
accordance with their terms or as to which the conditions for removal of the foregoing legend set
forth therein have been satisfied may, upon surrender of the certificates representing such shares
of Common Stock for exchange in accordance with the procedures of the transfer agent for the Common
Stock, be exchanged for a new certificate or certificates for a like number of shares of Common
Stock, which shall not bear the restrictive legend required by this Section 2.06(d).

(e) Any Note, or Common Stock issued upon the conversion of a Note, that is repurchased or
owned by the Company or any Affiliate thereof may not be resold by the Company or such Affiliate
unless registered under the Securities Act or resold pursuant to an exemption from the registration
requirements of the Securities Act in a transaction that results in such Notes or Common Stock, as
the case may be, not constituting “restricted securities” within the meaning of Rule 144 under the
Securities Act.

Section 2.07. Mutilated, Destroyed, Lost or Stolen Notes.

If a mutilated Note is surrendered to the Registrar or if the Holder of a Note claims that the
Note has been lost, destroyed or wrongfully taken, subject to compliance with the provisions of the
next sentence of this Section 2.07, the Company shall issue and the Trustee, upon Company Order,
shall authenticate a replacement Note if the requirements of Section 8-405 of the Uniform
Commercial Code are met such that the Holder (a) notifies the Company and the Trustee within a
reasonable time after such Holder has notice of such loss, destruction or wrongful taking and the
Registrar has not registered a transfer prior to receiving such notification, (b) makes such
request to the Company prior to the Company having notice that the Note has been acquired by a
protected purchaser as defined in Section 8-303 of the Uniform Commercial Code (a “protected
purchaser”) and (c) satisfies any other reasonable requirements of the Company and the Trustee.
Such Holder shall furnish an indemnity bond sufficient in the judgment of the Company and the
Trustee to protect the Company, the Trustee, the Paying Agent, the Conversion Agent and the
Registrar from any loss which any of them

 

22

 

may suffer if a Note is replaced. In the absence of
notice to the Company, the Trustee, Paying Agent, Conversion Agent or Registrar that such Note has
been acquired by a protected purchaser, the Company shall execute and upon Company Order the
Trustee shall authenticate and deliver, in exchange for any such mutilated Note or in lieu of any
such destroyed, lost or stolen Note, a new Note of like tenor and principal amount, bearing a
number not contemporaneously outstanding.

In case any such mutilated, destroyed, lost or stolen Note has become due and payable at the
Stated Maturity, upon redemption by the Company on the Redemption Date or on a Fundamental Change
Repurchase Date with respect to a repurchase upon a Fundamental Change, the Company in its
discretion, may instead of issuing a new Note, pay the amount due and payable with respect to such
Note.

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

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

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

Section 2.08. Cancellation.

The Company at any time may deliver Notes to the Trustee for cancellation. The Registrar, the
Paying Agent and the Conversion Agent shall forward to the Trustee any Notes surrendered to them
for registration of transfer, exchange, payment or conversion. The Trustee and no one else shall
cancel and dispose of them in accordance with its customary procedures and upon written request of
the Company shall return to the Company all Notes surrendered for registration of transfer,
exchange, payment, purchase, conversion or cancellation. All Notes so delivered to the Trustee
shall be cancelled promptly by the Trustee. The Company may not issue new Notes to replace Notes it
has paid or delivered to the Trustee for cancellation.

At such time as all beneficial interests in a Global Note have either been exchanged for
Definitive Notes, transferred, paid, repurchased, redeemed, converted or canceled, such Global Note
shall be returned by the Depositary or the Notes Custodian to the Trustee for cancellation or
retained and canceled by the Trustee. At any time prior to

 

23

 

such cancellation, if any beneficial interest in a Global Note is exchanged for Definitive Notes,
transferred in exchange for an interest in another Global Note, paid, repurchased, redeemed,
converted or canceled, the principal amount of Notes represented by such Global Note shall be
reduced and an adjustment shall be made on the Global Note and on the books and records of the
Trustee (if it is then the Notes Custodian for such Global Note) with respect to such Global Note,
by the Trustee or the Notes Custodian, to reflect such reduction.

Section 2.09. Payment of Interest; Defaulted Interest.

Interest on any Note that is payable, and is punctually paid or duly provided for, on any
Interest Payment Date shall be paid to the Person in whose name such Note (or one or more
predecessor Notes) is registered at the close of business on the Regular Record Date for such
interest at the office or agency of the Company maintained for such purpose pursuant to Section
2.03.

Any interest on any Note that is payable, but is not paid when the same becomes due and
payable and such nonpayment continues for a period of 30 days shall forthwith cease to be payable
to the Holder on the Regular Record Date, and such defaulted interest and (to the extent lawful)
interest on such defaulted interest at the rate borne by the Notes (such defaulted interest and
interest thereon herein collectively called “Defaulted Interest”) shall be paid by the Company, at
its election, as provided in clause (a) or (b) below:

(a) 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 the close of business on
a Special Record Date (as defined below) 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 (not less than 30 days after such
notice) of the proposed payment (the “Special Interest Payment Date”), and the Company shall make
arrangements reasonably satisfactory to the Trustee to deposit with the Trustee an amount of money
equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest 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
Trustee shall fix a record date (the “Special Record Date”) for the payment of such Defaulted
Interest which shall be not more than 15 days and not less than 10 days prior to the Special
Interest Payment Date and not less than 10 days after the receipt by the Trustee of the notice of
the proposed payment. The Trustee shall promptly notify the Company of such Special Record Date,
and in the name and at the expense of the Company, shall cause notice of the proposed payment of
such Defaulted Interest and the Special Record Date and Special Interest Payment Date therefor,
which notice shall be prepared by the Company and shall be in a form reasonably acceptable to the
Trustee, to be given in the manner provided for in Section 12.02, not less than 10 days prior to
such Special Record Date. Notice of the proposed

 

24

 

payment of such Defaulted Interest and the Special
Record Date and Special Interest Payment Date therefor having been so given, such Defaulted
Interest shall be paid on the
Special Interest Payment Date to the Persons in whose names the Notes are registered at the
close of business on such Special Record Date and shall no longer be payable pursuant to the
following clause (b).

(b) The Company may make payment of any Defaulted Interest in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the Notes may be listed, and
upon such notice as may be required by such exchange, 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.

Subject to the foregoing provisions of this Section, each Note delivered under this Indenture
upon registration of transfer of, or in exchange for, or in lieu of any other Note shall carry the
rights to interest accrued and unpaid which were carried by such other Note.

Section 2.10. Additional Interest.

(a) If (i) at any time during the six months to one year period following the last original
issuance date of the Notes, the Company fails to timely file any document or report that it is
required to file with the Commission pursuant to Section 13 or 15(d) of the Exchange Act (other
than on Form 8-K), as applicable (giving effect to any grace period provided by Rule 12b-25 under
the Exchange Act), or (ii) at any time after the 365th day following the last original
issuance date of the Notes, the Company fails to remove the restrictive legend from a Note upon a
transfer or sale of such Note or from any shares of Common Stock issued on conversion of such Note
that is otherwise freely tradable pursuant to Rule 144 under the Securities Act without
restrictions by Holders other than the Company’s Affiliates, the Company will pay additional
interest (“Additional Interest”) on all Outstanding Notes, which shall accrue at the rate of 0.50%
per annum of the principal amount of Notes Outstanding for each day during such period for which
the Company’s failure has occurred and is continuing.

(b) Additional Interest will be payable in arrears on each Interest Payment Date following
accrual in the same manner as regular interest on the Notes.

(c) The Additional Interest that is payable in accordance with Section 2.10 shall be in
addition to, and not in lieu of, any Additional Interest that may be payable as a result of the
Company’s election pursuant to Section 7.01.

(d) If Additional Interest is payable by the Company pursuant to Section 2.10, the Company
shall deliver to the Trustee an Officers’ Certificate to that effect stating (i) the amount of such
Additional Interest that is payable and (ii) the date on which such Additional Interest is payable.
Unless and until a Responsible Officer of the Trustee

 

25

 

receives at the Corporate Trust Office such
a certificate, the Trustee may assume without inquiry that no such Additional Interest is payable.

Section 2.11. Computation of Interest.

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

Section 2.12. CUSIP Numbers.

The Company in issuing the Notes and Common Stock upon conversion of the Notes may use CUSIP
numbers (if then generally in use). The Trustee shall not be responsible for the use of CUSIP
numbers, and the Trustee makes no representation as to their correctness as printed on any Note,
certificate of Common Stock or notice to Holders and that reliance may be placed only on the other
identification numbers printed on the Notes. The Company shall promptly notify the Trustee in
writing of any change in the CUSIP numbers.

Section 2.13. Calculations in Respect of the Notes.

The Company shall be responsible for making all calculations called for under the Notes. These
calculations include, but are not limited to, determinations of the Closing Sale Price of the
Common Stock, any accrued interest payable on the Notes and the Conversion Rate of the Notes. The
Company shall make these calculations in good faith and, absent manifest error, such calculations
will be final and binding on Holders of the Notes. The Company shall provide to the Trustee a
schedule of its calculations, and the Trustee, subject to Sections 8.01 and 8.02, shall be entitled
to rely upon the accuracy of such calculations without independent verification. The Trustee shall
forward the Company’s calculations to any Holder of the Notes upon the request of such Holder.

ARTICLE 3

Covenants

Section 3.01. Payment of Notes.

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

The Company will pay interest on overdue principal at the then applicable interest rate on the
Notes to the extent lawful; it will pay interest on overdue installments of

 

26

 

interest (without
regard to any applicable grace period) at the same rate to the extent lawful.

Section 3.02. Maintenance of Office or Agency.

The Company will maintain in the Borough of Manhattan, New York City, an office or agency
(which may be an office of the Trustee or an Affiliate of the Trustee, Registrar or co-registrar)
where Notes may be surrendered for registration of transfer, exchange or conversion 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 fails to maintain any such
required office or agency or fails to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office
of the Trustee.

The Company may also from time to time designate one or more other offices or agencies where
the Notes may be presented or surrendered for any or all such purposes and may from time to time
rescind such designations; provided, however, that no such designation or rescission will in any
manner relieve the Company of its obligation to maintain an office or agency in the Borough of
Manhattan, New York City, 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 Company hereby designates the Corporate Trust Office of the Trustee as one such office or
agency of the Company.

Section 3.03. Compliance Certificate.

The Company shall deliver to the Trustee within 120 days after the end of each fiscal year of
the Company an Officers’ Certificate, one of the signatories of which shall be the chief executive
officer, chief financial officer or chief accounting officer of the Company, stating that in the
course of the performance by the signer of his or her duties as an Officer of the Company, he or
she would normally have knowledge of any Default and whether or not such signer knows of any
Default that occurred during such period. If such signer does have knowledge of a Default, the
certificate shall describe the Default, its status and what action the Company is taking or
proposes to take with respect thereto. The Company also shall comply with Section 314(a)(4) of the
TIA.

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

 

27

 

Section 3.04. Reservation of Common Stock.

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

Section 3.05. Issuance of Shares.

All shares of Common Stock delivered upon conversion of the Notes shall be newly issued shares
or shares held in treasury by the Company, shall have been duly authorized and validly issued and
shall be fully paid and nonassessable, and shall be free from preemptive rights and free of any
Lien or adverse claim.

Section 3.06. Transfer Taxes.

If a Holder converts Notes for shares of Common Stock, the Company will pay any and all
documentary, stamp or similar issue or transfer tax due on the issue of shares of Common Stock upon
the conversion. The Company shall not, however, be required to pay any tax or duty that may be
payable in respect of any transfer involved in the issue and delivery of shares of Common Stock in
a name other than that of the Holder of the Note or Notes to be converted, and no such issue or
delivery shall be made unless and until the Person requesting such issue has paid to the Company
the amount of any such tax or duty, or has established to the satisfaction of the Company that such
tax or duty has been paid.

Section 3.07. Reports.

(a) So long as any Notes are Outstanding, the Company shall (i) file with the Commission
within the time periods prescribed by its rules and regulations and (ii) furnish to the Trustee and
the Holders of the Notes within 15 days after the date on which the Company would be required to
file the same with the Commission pursuant to its rules and regulations (giving effect to any grace
period provided by Rule 12b-25 under the Exchange Act), all quarterly and annual financial
information required to be contained in Forms 10-Q and 10-K and, with respect to the annual
consolidated financial statements only, a report thereon by the Company’s independent auditors.
The Company shall not be required to file any report or other information with the Commission if
the Commission does not permit such filing, although such reports shall be required to be furnished
to the Trustee. Documents filed by the Company with the Commission via the EDGAR system shall be
deemed furnished to the Trustee and the Holders of the Notes as of the time such documents are
filed via EDGAR.

(b) In addition, if at any time the Company is not subject to the reporting requirements of
Section 13 or 15(d) of the Exchange Act, the Company will furnish to Holders, Beneficial Owners and
prospective purchasers of the Notes or shares issuable

 

28

 

upon conversion of the Notes, upon their
request, the information required to be delivered pursuant to Rule 144A(d)(4) under the Securities
Act.

ARTICLE 4

Successors

Section 4.01. Merger, Consolidation, or Sale of Assets.

The Company shall not, directly or indirectly, consolidate with or merge into any other Person
in a transaction in which the Company is not the surviving corporation or convey, transfer or lease
the properties and assets of the Company substantially as an entirety to any successor Person,
unless:

(a) the successor Person, if any, is:

(i) a corporation organized and existing under the laws of the United States, any
state of the United States, or the District of Columbia, and

(ii) such Person assumes the Company’s obligations on the Notes and under this
Indenture pursuant to agreements reasonably satisfactory in form and substance to the
Trustee;

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

(c) the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that such consolidation, merger, conveyance, transfer or lease and, if a
supplemental indenture is required in connection with such transaction, such supplemental
indenture, comply with this Article 4 and that all conditions precedent herein provided for
relating to such transaction have been satisfied.

Section 4.02. Successor Corporation Substituted.

Upon any consolidation or merger, or any sale, assignment, transfer, lease, conveyance or
other disposition of all or substantially all of the properties or assets of the Company in a
transaction that is subject to, and that complies with the provisions of, Section 4.01 hereof, the
successor Person formed by such consolidation with or into which the Company is merged or to which
such sale, assignment, transfer, lease, conveyance or other disposition is made shall succeed to,
and be substituted for (so that from and after the date of such consolidation, merger, sale,
assignment, transfer, lease, conveyance or other disposition, the provisions of this Indenture
referring to the “Company” shall refer instead to the successor Person and not to the Company), and
may exercise every right and power of the Company under this Indenture with the same effect as if
such successor Person had been named as the Company herein; and thereafter,

 

29

 

except in the case of a
lease, the Company shall be discharged from all obligations and covenants under this Indenture and
the Notes.

ARTICLE 5

Redemption

Section 5.01. Right to Redeem; Notices to Trustee.

(a) The Notes are not redeemable by the Company prior to March 15, 2013. On or after March
15, 2013, the Notes may be redeemed for cash in whole or in part at the option of the Company if
the Closing Sale Price of the Common Stock is greater than or equal to 150% of the Conversion Price
on at least 20 Trading Days during any 30 consecutive Trading Day period ending on the date on
which the Company provides the Notice of Redemption.

(b) The redemption price at which the Notes are redeemable (the “Redemption Price”) shall be
equal to (i) 100% of the principal of Notes to be redeemed, plus (ii) accrued and unpaid interest
(including any Additional Interest) to, but excluding, the Redemption Date, plus (iii) the
Make-whole Premium. The Trustee shall have no duty to determine or calculate the Make-whole
Premium, which shall be determined by the Company in accordance with the provisions of this
Indenture, and the Trustee shall not be under any responsibility to determine the correctness of
any such determination and/or calculation and may conclusively rely on the correctness thereof.

(c) Upon any redemption in accordance with this Article 5, the Company will pay cash to
converting Holders the Make-whole Premium payment on all Notes called for redemption and converted
during the period from the date the Company mailed the Notice of Redemption to and including the
Redemption Date.

(d) The Company may not redeem any Notes unless all accrued and unpaid interest (including any
Additional Interest) thereon has been or is simultaneously paid for all interest periods ending
prior to the Redemption Date. In addition, the Company may not redeem any Notes or deliver to any
Holder of Notes a Notice of Redemption pursuant to Section 5.03 at any time when there exists any
accrued and unpaid Defaulted Interest.

(e) If the Redemption Date is after a Regular Record Date but on or prior to the corresponding
Interest Payment Date then the Company will (i) pay accrued and unpaid interest to the Holder of
record on such Regular Record Date and (x) in respect of any Notes redeemed on such Redemption
Date, the Redemption Price payable on such Notes shall not include such payment, or (y) in respect
of any Notes converted after such Record date and prior to the opening of business on such Interest
Payment Date, the converting Holder shall not be required to pay funds equal to the interest
payable to the Holder of record on such Regular Record Date, as set forth under Section 6.03; and
(ii) pay any Make-whole Premium payment on the Redemption date to the Holders of the

 

30

 

Notes to be
redeemed or Holders who convert their Notes called for redemption as set forth under Section
5.01(c) above. The Make-whole Premium payment will be based upon the present values of all
remaining interest payments, starting with the Interest Payment Date following the Interest Payment
Date corresponding to such Regular Record Date.

Section 5.02. Selection of Notes to be Redeemed.

If less than all the Notes are to be redeemed, the Trustee shall select the Notes to be
redeemed by lot, or on a pro rata basis or by any other method the Trustee considers fair and
appropriate (so long as such method is not prohibited by the rules of the NASDAQ Global Select
Market or any other stock exchange on which the Common Stock are then listed, as applicable). The
Trustee shall make the selection within seven days from its receipt of the notice from the Company
delivered pursuant to Section 5.03 from Outstanding Notes not previously called for redemption.

Notes and portions of them the Trustee selects shall be in principal amounts of $2,000 or in
integral multiples of $1,000 in excess thereof. Provisions of this Indenture that apply to Notes
called for redemption in whole also apply to Notes called for redemption in part. The Trustee
shall notify the Company promptly of the Notes or portions of Notes to be redeemed.

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

Section 5.03. Notice of Redemption.

At least 30 days but not more than 60 days before a Redemption Date, the Company shall mail a
notice of redemption by first-class mail, postage prepaid, to the Trustee, the Paying Agent and
each Holder of Notes to be redeemed (the “Notice of Redemption”); provided, however, that the
Company may not deliver any such notice to any Holder of Notes at any time when there exists any
accrued and unpaid Defaulted Interest.

The Notice of Redemption shall specify the Notes to be redeemed and shall state:

(i) the Redemption Date;

(ii) the Redemption Price;

(iii) the applicable Conversion Rate and any adjustments thereto;

 

31

 

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

(v) that the Company will make the Make-whole Premium payment in cash on all Notes
called for redemption and converted during the period from the date the Company mailed the
Notice of Redemption to and including the Redemption Date.

(vi) the procedures a Holder must follow to exercise rights under Article 11.

At the Company’s written request delivered at least 30 days prior to the Redemption Date, the
Trustee shall give the Notice of Redemption to each Holder of Notes to be redeemed in the Company’s
name and at the Company’s expense.

Section 5.04. Effect of Notice of Redemption.

Once Notice of Redemption is given, Notes called for redemption become due and payable on the
Redemption Date and at the Redemption Price stated in the notice except for Notes that are
converted in accordance with the terms of this Indenture. Upon surrender to the Paying Agent, such
Notes shall be paid at the Redemption Price stated in the notice.

Section 5.05. Deposit of Redemption Price.

Prior to 10:00 a.m. (New York City time) on or prior to the Redemption Date, the Company shall
deposit with the Trustee or with the Paying Agent (or, if the Company or a Subsidiary of the
Company or an Affiliate of either of them is acting as the Paying Agent, shall segregate and hold
in trust as provided in Section 2.04) an amount of money (in immediately available funds if
deposited on such Redemption Date) sufficient to pay the aggregate Redemption Price of all the
Notes or portions thereof which are to be redeemed as of the Redemption Date.

If the Paying Agent holds money sufficient to pay the Redemption Price with respect to the
Notes to be redeemed on the Redemption Date in accordance with the terms of this Indenture, then,
immediately on and after the Redemption Date, interest on such Notes shall cease to accrue, whether
or not the Notes are delivered to the Paying Agent, and all other rights of the Holders of such
Notes shall terminate, other than the right to receive the Redemption Price upon delivery of such
Notes.

Section 5.06. Notes Redeemed in Part.

Any Note which is to be redeemed only in part shall be surrendered at the office of the Paying
Agent (with, if the Company or the Trustee so requires, due endorsement by, or a written instrument
of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder
thereof or such Holder’s attorney duly authorized in

 

32

 

writing) and the Company shall execute and,
upon Company Order, the Trustee shall authenticate and deliver to the Holder of such Note, without
service charge, a new Note or Note, of any authorized denomination as requested by such Holder in
aggregate principal amount equal to, and in exchange for, the portion of the principal amount of
the Note so surrendered that is not redeemed.

Section 5.07. Purchase of Notes in Open Market.

The Company shall have the right, to the extent permitted by law, at any time, and from time
to time, to purchase the Notes at any price or prices in the open market or otherwise.

Section 5.08. Removal of Restrictive Legend.

If the Company redeems Notes in accordance with the provisions of Article 5 on or after March
15, 2013, it shall remove the restrictive legend from the Notes and from any shares of Common Stock
issued upon conversion of the Notes called for redemption and converted during the period from the
date the Company mailed the Notice of Redemption to and including the Redemption Date.

ARTICLE 6

Conversion of Notes

Section 6.01. Conversion Right and Conversion Rate.

(a) Subject to and upon compliance with the provisions of this Article VI, at the option of
the Holder thereof, at any time prior to the close of business on the date of Stated Maturity,
unless earlier redeemed or repurchased, any portion of the principal amount of any Note that is an
integral multiple of $1,000 (provided that the principal amount of such Note to remain Outstanding
after such conversion is equal to $2,000 or any integral multiple of $1,000 in excess thereof) may
be converted into fully paid and non-assessable shares of Common Stock at the Conversion Rate,
determined as hereinafter provided, in effect at the time of conversion. In addition, in
connection with any Notes called for redemption, the Company shall make the Make-whole Premium
payment in cash on all such Notes called for redemption and converted during the period from the
date the Company mailed the Notice of Redemption to and including the Redemption Date.

(b) If any Holder has submitted Notes for repurchase upon a Fundamental Change in accordance
with Article 11 hereof, such Notes submitted for repurchase may be converted only if such Holder
withdraws the election for repurchase in accordance with Section 11.07 hereof.

 

33

 

(c) The rate at which shares of Common Stock shall be delivered upon conversion (herein called
the “Conversion Rate”) shall be initially 49.0557 shares of Common Stock for each $1,000 principal
amount of Notes. The Conversion Rate will be adjusted under the circumstances provided in Section
6.05. All calculations under this Article shall be made to the nearest cent or to the nearest
1/10,000th of a share, as the case may be.

Section 6.02. Conversion Consideration.

(a) Upon surrendering any Notes for conversion, the Holder of such Notes shall receive, in
respect of each $1,000 principal amount of Notes, a number of shares of Common Stock equal to the
Conversion Rate in effect on the Conversion Date plus cash, if any, in payment of fractional
shares, Make-whole Premium amounts or amounts in lieu of any Additional Shares.

(b) When a Holder receives Common Stock upon conversion of Notes, such Holder will also
receive any rights under any stockholder rights plan that the Company may adopt, whether or not the
rights have separated from the Common Stock at the time of conversion unless, prior to conversion,
the rights have expired, terminated or been exchanged.

Section 6.03. Exercise of Conversion Right.

(a) In order to exercise the conversion right:

(i) the Holder of any Definitive Note to be converted must: (i) complete and manually
sign a notice of conversion substantially in the form of Exhibit B hereto (the “Conversion
Notice”); (ii) deliver the Conversion Notice and the Definitive Note to the Conversion
Agent; and (iii) if required by the Company, the Trustee or the Conversion Agent, furnish
appropriate endorsements and transfer documents; or

(ii) the holder of beneficial interests in any Global Note to be converted must comply
with the Applicable Procedures to cause the beneficial interests in such Global Note to be
delivered to the Conversion Agent,

and in either case, the Holder of a Definitive Note or holder of beneficial interests in a Global
Note will, if required, pay all transfer or similar taxes that the Company is not otherwise
required to pay pursuant to Section 3.06 hereof and, if required pursuant to Section 6.03(b)
hereof, pay funds equal to the interest payable on the next Interest Payment Date.

The date on which a Holder of a Definitive Note or holder of a beneficial interest in a Global
Note completes the requirements of this Section 6.03(a) shall be deemed to be the date of
conversion (the “Conversion Date”) for purposes of this Article VI. On and

 

34

 

after the Conversion
Date, the conversion by such Holder or holder, as set forth in the Conversion Notice, shall become
irrevocable.

The Company shall deliver shares of Common Stock (and any cash in payment of fractional
shares, Make-whole Premium amounts or amounts in lieu of any Additional Shares) deliverable upon
conversion to the Conversion Agent no later than the third Business Day following the Conversion
Date.

(b) Each Definitive Note surrendered (in whole or in part), or beneficial interest in any
Global Note surrendered to the Conversion Agent, for conversion during a Record
Date Period shall be accompanied by payment by the Holder in same-day funds or other funds
acceptable to the Company of an amount equal to the interest payable on the applicable Interest
Payment Date on the principal amount of such Note (or part thereof, as the case may be) being
surrendered for conversion; provided, however, that no such payment by the Holder need be made (i)
if the Company has specified a Redemption Date during such Record Date Period or on the
corresponding Interest Payment Date; (ii) if the Company has specified a Make-whole Fundamental
Change Repurchase Date during such Record Date Period or on the corresponding Interest Payment
Date; (iii) with respect to any Notes surrendered for conversion following the Regular Record Date
for the payment of interest immediately preceding the Stated Maturity; or (iv) only to the extent
of overdue interest, if any overdue interest exists at the time of conversion with respect to such
Note.

The interest payable by the Company on such Interest Payment Date with respect to any Note (or
portion thereof, if applicable) that is surrendered for conversion during a Record Date Period
shall be paid to the Holder of such Note as of such Regular Record Date in an amount equal to the
interest that would have been payable on such Note if such Note had been converted as of the close
of business on the applicable Interest Payment Date.

Except as provided in this Section 6.03(b), no cash payment or adjustment to the Conversion
Rate shall be made upon any conversion on account of any interest accrued from the Interest Payment
Date immediately prior to the Conversion Date, in respect of any Note (or part thereof, as the case
may be) surrendered for conversion, or on account of any dividends on the Common Stock issued upon
conversion. The Company’s delivery to the Holder of the number of shares of Common Stock (and cash
in accordance with Section 5.01, Section 6.04 and Section 6.05(e)) into which a Note is convertible
will be deemed to satisfy all of the Company’s obligations with respect to such Note
through the Conversion Date. Accordingly, accrued but unpaid interest, if any, will be
deemed to be paid in full rather than canceled, extinguished or forfeited.

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

 

35

 

purposes as the record holder or holders of such Common Stock
at such time. Following any Conversion Date, the Company shall satisfy its obligations with respect
to such conversion by either:

(i) delivering to the Trustee, for delivery to the Holder (or such other Person as may
be named in the relevant Conversion Notice), certificates representing the number of shares
of Common Stock issuable upon such conversion; or

(ii) delivering to such Holder (or such other Person as may be named in the relevant
Conversion Notice) such number of shares of Common Stock issuable upon such conversion in
accordance with the Applicable Procedures,

in each case, together with payment in cash, if any, as provided in Section 5.01, Section 6.04 and
Section 6.05(e) (such delivery of shares and cash payment, if any, the “Settlement”); provided that
shares of Common Stock only will be deliverable in certificated form if the Holder exercising such
conversion has specifically requested in writing that delivery be in certificates.

(d) In the case of any Note that is converted in part only, upon such conversion the Company
shall execute and, upon Company Order, the Trustee shall authenticate and deliver to the Holder
thereof, at the expense of the Company, a new Note or Notes of authorized denominations in an
aggregate principal amount equal to the unconverted portion of the principal amount of such Note.

Section 6.04. Fractions of Shares.

No fractional shares of Common Stock shall be issued upon conversion of any Note or Notes. If
more than one Note shall be surrendered for conversion at one time by the same Holder, the number
of full shares that shall be issuable upon conversion thereof shall be computed on the basis of the
aggregate principal amount of the Notes (or specified portions thereof) so surrendered. Instead of
any fractional share of Common Stock (calculated to the nearest 1/10,000th of a share) that would
otherwise be issuable upon conversion of any Note or Notes (or specified portions thereof), the
Company shall calculate and pay a cash amount equal to the product of such fraction of a share and
the Closing Sale Price on the Trading Day immediately preceding the Conversion Date.

Section 6.05. Adjustment of Conversion Rate.

(a) The Conversion Rate shall be subject to adjustment, without duplication, from time to time
upon the occurrence of any of the following:

(i) Stock Dividends in Common Stock.

In case the Company shall pay or make a dividend or other distribution on shares of Common
Stock, payable exclusively in shares of Common Stock, the Conversion Rate

 

36

 

shall be increased by
dividing the Conversion Rate in effect immediately prior to the opening of business on the day
following the record date fixed for the determination of stockholders entitled to receive such
dividend or other distribution by an adjustment factor equal to a fraction:

(A) the numerator of which shall be the number of shares of Common Stock outstanding
immediately prior to the opening of business on the day following the record date fixed for
such determination; and

(B) the denominator shall be the sum of such number of shares and the total number of
 shares constituting such dividend or other distribution,

such increase to become effective immediately after the opening of business on the day following
the record date fixed for such determination. If, after any such record date fixed for
determination, any dividend or distribution is not in fact paid, the Conversion Rate
shall be immediately readjusted, effective as of the date the Company’s Board of Directors
determines not to pay such dividend or distribution, to the Conversion Rate that would have been in
effect if such determination date had not been fixed. For the purposes of this clause (i), the
number of shares of Common Stock at any time outstanding shall not include shares held in the
treasury of the Company. The Company will not pay any dividend or make any distribution on shares
of Common Stock held in the treasury of the Company.

(ii) Issuance of Rights or Warrants.

In case the Company shall issue to all or substantially all holders of its Common Stock rights
or warrants that allow the holders to purchase or subscribe for shares of Common Stock for a period
expiring within 60 days from the date of issuance of the rights or warrants at a price per share
less than the Current Market Price on the record date fixed for the determination of stockholders
entitled to receive such rights or warrants (other than (x) any rights or warrants that by their
terms will also be issued to any Holder upon conversion of a Note into shares of Common Stock
without any action required by the Company or any other Person or (y) any rights or warrants are
distributed to shareholders of the Company upon a merger or consolidation as set forth in Section
6.08 hereof, and taking into consideration in determining the price per share any consideration
received by the Company for such rights or warrants and any amount payable on exercise or
conversion thereof, with the value of such consideration, if other than cash, to be determined by
the Company), then the Conversion Rate shall be increased by dividing the Conversion Rate in effect
immediately prior to the opening of business on the day following the record date fixed for such
determination by an adjustment factor equal to a fraction:

(A) the numerator of which shall be the number of shares of Common Stock outstanding
immediately prior to the opening of business on the day following the record date fixed for
such determination plus the number of shares

 

37

 

of Common Stock that the aggregate of the
offering price of the total number of shares of Common Stock so offered for subscription or
purchase would purchase at such Current Market Price; and

(B) the denominator of which shall be the number of shares of Common Stock outstanding
immediately prior to the opening of business on the day following the record date fixed for
such determination plus the number of shares of Common Stock so offered for subscription or
purchase,

such increase to become effective immediately after the opening of business on the day following
the record date fixed for such determination. If, after any such record date fixed for
determination, any such rights or warrants are not in fact issued, or are not exercised prior to
the expiration thereof, the Conversion Rate shall be immediately readjusted, effective as of the
date such rights or warrants expire, or the date the Company’s Board of Directors determines not to
issue such rights or warrants, to the Conversion Rate that would have been in effect if the
unexercised rights or warrants had never been granted or such determination date had not been
fixed, as the case may be, and as a result no
additional shares are delivered or issued pursuant to such rights or warrants. For the purposes of
this clause (ii), the number of shares of Common Stock at any time outstanding shall not include
shares held in the treasury of the Company. The Company will not issue any rights or warrants in
respect of shares of Common Stock held in the treasury of the Company.

(iii) Stock Splits and Combinations.

(A) In case outstanding shares of Common Stock shall be subdivided or split into a greater
number of shares of Common Stock, then the Conversion Rate in effect immediately prior to the
opening of business on the day following the day upon which such subdivision or split becomes
effective shall be proportionately increased; and (B) in case outstanding shares of Common Stock
shall be combined or reclassified into a smaller number of shares of Common Stock, then the
Conversion Rate in effect immediately prior to the opening of business on the day following the day
upon which such combination or reclassification becomes effective shall be proportionately reduced;
in each case, such increase or reduction, as the case may be, to become effective immediately after
the opening of business on the day following the day upon which such subdivision, combination or
reclassification becomes effective.

(iv) Distribution of Indebtedness, Securities or Assets.

In case the Company shall distribute by dividend or otherwise to all or substantially all
holders of its Common Stock evidences of its indebtedness, securities, assets or rights, options or
warrants to purchase the Company’s securities (provided that if these rights are only exercisable
upon the occurrence of a specified triggering event or events (“Trigger Event”), then the
Conversion Rate will not be adjusted until the Trigger Events occur, and any shares of Common Stock
delivered upon conversion of the Notes

 

38

 

at any time following distribution of such rights but prior
to the expiration thereof or the occurrence of a Trigger Event shall be accompanied by a
corresponding amount of such rights or warrants), but excluding:

(A) any dividends or distributions as to which an adjustment was effected pursuant to
clause (i) of this Section 6.05(a);

(B) any rights or warrants as to which an adjustment was effected pursuant to clause
(ii) of this Section 6.05(a); and

(C) any dividends or distributions paid exclusively in cash described in clause (vi)
of this Section 6.05(a)

(the “Distributed Assets”), then (other than in the case as described in clause (v) of this Section
6.05(a)) the Conversion Rate shall be increased so that the same shall equal the rate determined by
multiplying the Conversion Rate in effect immediately prior to the opening of business on the day
following the record date fixed for the determination of stockholders entitled to receive such
distribution by an adjustment factor equal to a fraction:

(A) the numerator of which shall be the Current Market Price per share of Common
Stock; and

(B) the denominator of which shall be the Current Market Price per share of Common
Stock on the record date fixed for such determination minus the Fair Market Value, as
determined by the Company’s Board of Directors, whose determination in good faith shall be
conclusive and described in a Board Resolution delivered to the Trustee and certified by
the Secretary or an Assistant Secretary of the Company, of the portion of those Distributed
Assets applicable to one share of Common Stock,

such adjustment to become effective immediately after the opening of business on the day following
the record date fixed for the determination of stockholders entitled to receive such distribution.
If after any such record date fixed for determination, any such distribution is not in fact made,
the Conversion Rate shall be immediately readjusted, effective as of the date the Company’s Board
of Directors determines not to make such distribution, to the Conversion Rate that would have been
in effect if such determination date had not been fixed.

Notwithstanding the foregoing, in cases where (A) the Fair Market Value per share of the
Distributed Assets equals or exceeds the Current Market Price of the Common Stock, or (B) the
Current Market Price of the Common Stock exceeds the Fair Market Value per share of the Distributed
Assets by less than $1.00, in lieu of the adjustment set forth in this Section 6.05(a)(iv), Holders
will receive upon conversion, in addition to shares of Common Stock, if any, the amount and kind of
Distributed Assets

 

39

 

such Holders would have received upon conversion of such Holders’ Notes if they
had been converted immediately prior to the record date for such distribution.

(v) Spin-Offs.

In case the Company shall distribute to all or substantially all holders of its Common Stock
shares of Capital Stock of any class or series, or similar Equity Interests, of or relating to a
Subsidiary or other business unit, which Capital Stock is or Equity Interests are traded on The
NASDAQ Global Select Market, The NASDAQ Global Market, The New York Stock Exchange or another U.S.
national securities exchange or quoted on an established automated over-the-counter trading market
in the United States (a “Spin-off”), then the Conversion Rate shall be increased so that the same
shall equal the rate determined by multiplying the Conversion Rate in effect immediately prior to
the opening of business on the day following the record date fixed for the Spin-Off by an
adjustment factor equal to a fraction:

(A) the numerator of which is the Current Market Price of the Common Stock, plus the
average of the Closing Sale Prices of the Capital Stock or similar Equity Interests
distributed to holders of Common Stock applicable to one share of Common Stock over the ten
consecutive Trading Days immediately following, and including, the ex-dividend date for the
Spin-Off; and

(B) the denominator of which is the Current Market Price of the Common Stock.

The adjustment to the Conversion Rate pursuant to this Section 6.05(a)(v) shall be made after
the opening of business on the day after the tenth Trading Day from, and including, the effective
date of the Spin-Off, but shall be given effect as of immediately prior to the opening of business
on the day following the record date fixed for the Spin-Off; provided that the Company may delay
delivery of any incremental shares of its Common Stock until the information required for the
calculation set forth in this Section 6.05(a)(v) becomes available, if it is not available at the
time at which Settlement of a given conversion is to occur.

(vi) Cash Distributions.

In case the Company shall pay a dividend or make a distribution consisting exclusively of cash
to all or substantially all holders of outstanding shares of Common Stock, then the Conversion Rate
shall be increased so that the same shall equal the rate determined by multiplying the Conversion
Rate in effect immediately prior to the opening of business on the day immediately following the
record date fixed for determination of the stockholders entitled to receive such distribution by an
adjustment factor equal to a fraction:

 

40

 

(A) the numerator of which shall be equal to the Current Market Price; and

(B) the denominator of which shall be equal to the Current Market Price minus the
amount per share of such distribution,

such adjustment to become effective immediately after the opening of business on the day
immediately following the record date fixed for the determination of stockholders entitled to
receive such distribution.

Notwithstanding the foregoing, in cases where (A) the per share amount of such distribution
equals or exceeds the Current Market Price of the Common Stock, or (B) the Current Market Price of
the Common Stock exceeds the per share amount of such distribution by less than $1.00, in lieu of
the adjustment set forth in this Section 6.05(a)(vi), Holders will receive upon conversion, in
addition to shares of Common Stock, if any, such distribution such Holders would have received upon
conversion of such Holders’ Notes if they had been converted immediately prior to the record date
for such distribution.

(vii) Tender or Exchange Offers.

In case the Company or any Subsidiary shall make a payment in respect of a tender offer or
exchange offer for any portion of the Common Stock, in which event, to the extent the cash and
value of any other consideration included in the payment per share of Common Stock exceeds the
Closing Sale Price of the Common Stock on the Trading Day immediately following the last date on
which tenders or exchanges may be
made pursuant to such tender offer or exchange offer (the “Expiration Date”), as the case may
be, then the Conversion Rate shall be adjusted so that the same shall equal the rate determined by
multiplying the Conversion Rate immediately prior to the opening of business on the Trading Day
following the Expiration Date by an adjustment factor equal to a fraction:

(A) the numerator of which shall be equal to the sum of (a) the Fair Market Value, as
determined by the Board of Directors of the Company, whose determination in good faith
shall be conclusive and described in a Board Resolution delivered to the Trustee and
certified by the Secretary of the Company, of the aggregate consideration payable for all
 shares of Common Stock purchased by the Company in the tender or exchange offer and (b) the
product of (i) the number of shares of Common Stock outstanding less any such purchased
 shares and (ii) the Closing Sale Price of the Common Stock on the Trading Day immediately
following the Expiration Date; and

(B) the denominator of which shall be equal to the product of (a) the number of shares
of Common Stock outstanding, including any such purchased

 

41

 

shares, and (b) the Closing Sale
Price of the Common Stock on the Trading Day immediately following the Expiration Date.

The adjustment pursuant to this clause (vii) will become effective immediately after the
opening of business on the second Trading Day following the Expiration Date.

(viii) Repurchases.

In case the Company or any of its Subsidiaries shall make a payment in respect of a repurchase
of Common Stock the consideration for which exceeds the average of the Closing Sale Prices of the
Common Stock for the five consecutive Trading Days ending on the relevant repurchase date (such
amount, the “Repurchase Premium”), and that repurchase, together with any other repurchases of
Common Stock by the Company or any Subsidiary involving a Repurchase Premium concluded within the
preceding twelve months not triggering an adjustment to the Conversion Rate, results in the payment
by the Company of an aggregate consideration exceeding an amount equal to 10% of the Market
Capitalization of the Common Stock, then the Conversion Rate shall be adjusted so that the same
shall equal the rate determined by multiplying the Conversion Rate immediately prior to the opening
of business on the day immediately following the date of the repurchase triggering the adjustment
by an adjustment factor equal to a fraction:

(A) the numerator of which shall be equal to the Current Market Price of the Common
Stock; and

(B) the denominator of which shall be equal to (a) the Current Market Price of the
Common Stock minus (b) the quotient of (i) the aggregate amount of all the Repurchase
Premiums paid in connection with such repurchases and (ii) the number of shares of Common
Stock outstanding on the day immediately following the date of the repurchase triggering
the adjustment, as
determined by the Board of Directors of the Company, whose determination in good faith
shall be conclusive;

provided that no adjustment to the Conversion Rate shall be made to the extent the Conversion Rate
is not increased as a result of the above calculation; and provided, further, that the repurchases
of Common Stock effected by the Company or its agent in conformity with Rule 10b-18 under the
Exchange Act will not be included in any adjustment to the Conversion Rate made pursuant to this
Section 6.05(a)(viii).

If a payment by the Company shall cause an adjustment to the Conversion Rate under both clause
(vii) and clause (viii) of this Section 6.05(a), the provisions of Section 6.05(a)(viii) shall
control.

The adjustment to the Conversion Rate pursuant to this Section 6.05(a)(viii) shall be made
after the opening of business on the day after the fifth Trading Day beginning on the Trading Day
following the date of the repurchase triggering the adjustment, but shall

 

42

 

be given effect as of the
close of business on the date of the repurchase triggering the adjustment.

If any distribution or transaction described in clauses (i) through (viii) of this Section
6.05(a) has not resulted in an adjustment to the Conversion Rate applicable to conversion of a
given Note but the shares of the Common Stock deliverable in respect of such conversion are not
entitled to participate in the relevant distribution or transaction (because such shares were not
held on a related record date or otherwise), then the Company shall adjust the number of shares
that it will deliver in respect of such conversion to reflect the relevant distribution or
transaction.

If any provision of this Indenture requires the averaging or summation of Closing Sale Prices
(including in connection with determining a Current Market Price) or any functions thereof over a
span of multiple days, the Company’s Board of Directors shall make appropriate adjustments to such
Closing Sale Prices or functions thereof or the Conversion Rate to account for any adjustment to
the Conversion Rate that becomes effective, or any event requiring an adjustment to the Conversion
Rate in which the ex-dividend date of the event occurs, at any time during the period over which
such average or summation is to be calculated.

(b) No Adjustment. For the avoidance of doubt, except as provided above no adjustment in the
Conversion Rate shall be required:

(i) upon the issuance of (A) any shares of Common Stock or (B) options, warrants or
other rights to acquire Common Stock (including the issuance of Common Stock pursuant to
such options, warrants or other rights), in any transaction resulting in an exchange for
Fair Market Value, including in connection with a reduction of indebtedness or liabilities
of the Company or its Subsidiaries including, without limitation, upon the conversion of
convertible securities of the Company outstanding on the date the Notes were issued or
pursuant to settlements with respect to claims related to any governmental or private
litigation, dispute, investigation, proceeding or other similar action;

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

(iii) upon the issuance of any shares of Common Stock or options or rights to purchase
such shares pursuant to any present or future employee, director or consultant benefit plan
or program or similar arrangement of, or assumed by, the Company or any of its
Subsidiaries;

 

43

 

(iv) upon the issuance of any shares of Common Stock pursuant to any option, warrant,
right or exercisable, exchangeable or convertible security not described in clause (iii) of
this Section 6.05(b) and outstanding as of the date the Notes were first issued;

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

(vi) for accrued and unpaid interest, if any.

In addition, the Company will not be required to make an adjustment in the Conversion Rate
unless the adjustment would require a change of at least 1% in the Conversion Rate. The Company
shall carry forward any adjustment that is less than 1% of the Conversion Rate, take such
carried-forward adjustments into account in any subsequent adjustments, and make such
carried-forward adjustments, regardless of whether the aggregate adjustment is less than 1%, (a)
annually on the anniversary of the first date of issue of the Notes and (b) otherwise (1) five
Business Days prior to the Stated Maturity of the Notes or (2) prior to any Conversion Date, unless
such adjustment has already been made.

No adjustment will be made to the Conversion Rate or a Holder’s ability to convert the Notes
if (i) such Holder otherwise participates (as a result of holding Notes) in a transaction that
would otherwise trigger an adjustment pursuant to Section 6.05(a) without converting; or (ii) upon
conversion, such Holder receives shares of Common Stock entitled to participate in the transaction
that would otherwise trigger an adjustment as pursuant to Section 6.05(a).

(c) Increase in Conversion Rate due to Taxes. The Company may make such increases in the
Conversion Rate, for the remaining term of the Notes or any shorter term, in addition to those
required by clause (a) of this Section 6.05, as the Board of Directors of the Company considers to
be advisable in order to avoid or diminish any income tax to any holders of shares of Common Stock
or rights to purchase Common Stock resulting from any dividend or distribution of stock or issuance
of rights or warrants to purchase or subscribe for stock or from any event treated as such for
income tax purposes.

(d) Temporary Increase in Conversion Rate. To the extent permitted by applicable law and the
rules of The NASDAQ Global Select Market and any other securities exchange on which the Common
Stock is then listed, the Company from time to time may increase the Conversion Rate by any amount
for any period of time if the period is at least twenty (20) Business Days, the increase is
irrevocable during such period, and the Company’s Board of Directors shall have made a
determination that such increase would be in the best interests of the Company, which determination
shall be conclusive. Whenever the Conversion Rate is increased pursuant to the preceding sentence,
the Company shall give notice of the increase to the Holders in the manner provided in Section
12.02, with a copy to the Trustee and Conversion Agent, at least fifteen (15) days prior to the
date the increased Conversion Rate takes effect, and such

 

44

 

notice shall state the increased
Conversion Rate and the period during which it will be in effect.

(e) Make-whole Fundamental Change Adjustment. In case of a Make-whole Fundamental Change,
solely upon receipt by the Conversion Agent of any Holder’s Conversion Notice on or after the
Effective Date of the Make-whole Fundamental Change and prior to the 45th day following such
Effective Date (or, if earlier and to the extent applicable, the close of business on the second
Business Day immediately preceding the Fundamental Change Repurchase Date (as specified in the
Fundamental Change Repurchase Right Notice)), the Company shall increase the Conversion Rate for
the Notes surrendered for conversion by such Holder by the number of Additional Shares determined
in accordance with this Section 6.05(e); provided, however, that prior to obtaining shareholder
approval for the issuance of such Additional Shares in accordance with The NASDAQ Global Select
Market listing standards as set forth in this Section 6.05(e), the Company shall, in lieu of
issuing Additional Shares, make a cash payment equal to the number of Additional Shares that were
otherwise required to be delivered multiplied by the Stock Price. If the Company obtains such
shareholder approval, the Company shall no longer make any such cash payment and shall instead
increase the Conversion Rate by such Additional Shares. The Company shall submit to its
shareholders at the shareholders’ meeting (whether a special or annual) following its annual
meeting in 2010 and shall formally endorse a proposal to approve the issuance of such Additional
Shares in accordance with The NASDAQ Global Select Market listing requirements.

A “Make-whole Fundamental Change” means any transaction or event described in clause (2), (3)
or (4) of the definition of a Fundamental Change (including, for this purpose, any transaction or
event described in clause (3) thereof as if such clause did not include clause (b) thereto), other
than any such transaction or event pursuant to which at least 90% of the consideration paid for the
Common Stock (excluding cash payments for fractional shares and cash payments made pursuant to
dissenters’ appraisal rights) consists of shares of Capital Stock traded on The NASDAQ Global
Select Market, The NASDAQ Global Market, The New York Stock Exchange or another U.S. national
securities exchange or quoted on an established automated over-the-counter trading market in the
United States (or that will be so traded or quoted immediately following the transaction) and as a
result of such transaction or transactions the Notes become convertible solely into such Capital
Stock and such other consideration received in
connection with such transaction or transactions; provided, however, that prior to obtaining a
shareholder approval for the issuance of such shares as set forth in this Section 6.05(e), a
Make-whole Fundamental Change shall be deemed to have occurred only upon the occurrence of such
transaction or event (regardless of whether any related transaction or event constitutes a
Make-whole Fundamental Change) and if the Company or its Board of Directors approved such
transaction or event or formally adopted a neutral position with respect thereto, without revoking
or modifying such position prior to the effective date of such transaction or event. Unless the
Company has obtained a shareholder approval for the issuance of such shares as set forth in this
Section 6.05(e),

 

45

 

neither the Company nor its Board of Directors will take any action to directly or
indirectly facilitate or participate in any such transaction or event without formally approving it
or adopting a neutral position with respect thereto. The number of Additional Shares will be
determined by reference to the table below.

The following table sets forth the number of Additional Shares issuable per $1,000 initial
principal amount of Notes as a result of a Make-whole Fundamental Change that occurs in the
corresponding period:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock Price ($)	 
	Effective Date	 	$15.10	 	 	$20.00	 	 	$25.00	 	 	$30.00	 	 	$35.00	 	 	$40.00	 	 	$45.00	 	 	$50.00	 	 	$55.00	 	 	$60.00	 	 	$65.00	 	 	$75.00	 	 	$85.00	 	 	$100.00	 
	March 15, 2010
	 	 	17.1694	 	 	 	9.6731	 	 	 	5.9762	 	 	 	3.9718	 	 	 	2.7707	 	 	 	1.9944	 	 	 	1.4629	 	 	 	1.0830	 	 	 	0.8027	 	 	 	0.5913	 	 	 	0.4297	 	 	 	0.2092	 	 	 	0.0785	 	 	 	0.0000	 
	March 15, 2011
	 	 	17.1694	 	 	 	9.2990	 	 	 	5.4869	 	 	 	3.5200	 	 	 	2.3947	 	 	 	1.6944	 	 	 	1.2277	 	 	 	0.9001	 	 	 	0.6612	 	 	 	0.4822	 	 	 	0.3459	 	 	 	0.1608	 	 	 	0.0519	 	 	 	0.0000	 
	March 15, 2012
	 	 	17.1694	 	 	 	8.6856	 	 	 	4.7612	 	 	 	2.8827	 	 	 	1.8855	 	 	 	1.3017	 	 	 	0.9297	 	 	 	0.6751	 	 	 	0.4917	 	 	 	0.3550	 	 	 	0.2508	 	 	 	0.1087	 	 	 	0.0253	 	 	 	0.0000	 
	March 15, 2013
	 	 	17.1694	 	 	 	7.6240	 	 	 	3.6435	 	 	 	1.9725	 	 	 	1.2027	 	 	 	0.8030	 	 	 	0.5669	 	 	 	0.4106	 	 	 	0.2983	 	 	 	0.2133	 	 	 	0.1473	 	 	 	0.0549	 	 	 	0.0022	 	 	 	0.0000	 
	March 15, 2014
	 	 	17.1694	 	 	 	5.6437	 	 	 	1.8439	 	 	 	0.7129	 	 	 	0.3725	 	 	 	0.2468	 	 	 	0.1809	 	 	 	0.1355	 	 	 	0.0998	 	 	 	0.0705	 	 	 	0.0457	 	 	 	0.0069	 	 	 	0.0000	 	 	 	0.0000	 
	March 15, 2015
	 	 	17.1694	 	 	 	0.9408	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 

The Stock Prices set forth in the first row of the table above shall be adjusted as of any date on
which the Conversion Rate of the Notes is adjusted in accordance with Section 6.05 hereof. The
adjusted Stock Prices shall equal the Stock Prices applicable immediately prior to such adjustment,
multiplied by an adjustment factor equal to a fraction, the numerator of which is the Conversion
Rate immediately prior to the adjustment giving rise to the Stock Price adjustment and the
denominator of which is the Conversion Rate as so adjusted. The number of Additional Shares shall
be adjusted in the same manner and for the same events as the Conversion Rate as set forth in
Section 6.05 hereof.

The exact Stock Prices and Effective Dates may not be set forth on the table; in which case,
if:

(A) the Stock Price is between two Stock Price amounts on the table or the
Effective Date is between two Effective Dates on the table, the number of
Additional Shares will be determined by straight-line interpolation between the
number of Additional Shares set forth for the higher and lower Stock Price amounts
and the two Effective Dates, as applicable, based on a 365-day year;

(B) the Stock Price is more than $100.00 per share (subject to adjustment),
no further adjustment will be made to the Conversion Rate as a result of the
Make-whole Fundamental Change; and

(C) the Stock Price is less than $15.10 per share (subject to adjustment), no
further adjustment will be made to the Conversion Rate as a result of the
Make-whole Fundamental Change.

Notwithstanding the foregoing, in no event shall the total number of shares of Common Stock
issuable upon conversion of a Note exceed 66.2251 per $1,000 principal

 

46

 

amount of the Notes, after
giving effect to the increase in the Conversion Rate as set forth in Section 6.05(e) hereof,
subject to the same adjustments as set forth in Section 6.05(a) hereof.

Section 6.06. Notice of Adjustments of Conversion Rate.

Whenever the Conversion Rate is adjusted pursuant to Section 6.05 hereof:

(a) the Company shall compute the adjusted Conversion Rate in accordance with Section 6.05
hereof and shall prepare an Officer’s Certificate setting forth (1) the adjusted Conversion Rate,
(2) the clause of Section 6.05 pursuant to which such adjustment has been made, showing in
reasonable detail the facts upon which such adjustment is based, (3) the calculation of such
adjustment and (4) the date as of which such adjustment is effective, and such certificate shall
promptly be delivered to the Trustee and each Conversion Agent (which such certificates shall be
conclusive absent manifest error); and

(b) upon each such adjustment, a notice stating that the Conversion Rate has been adjusted and
setting forth the adjusted Conversion Rate shall be required, and as soon as practicable after it
is required, such notice shall be provided by the Company to all Holders in accordance with Section
12.02.

Neither the Trustee nor any Conversion Agent shall be under any duty or responsibility with
respect to any such certificate or the information and calculations contained therein, except to
exhibit the same to any Holder of Notes desiring inspection thereof at its office during normal
business hours.

Section 6.07. Cancellation of Converted Notes.

All Definitive Notes delivered for conversion shall be delivered to the Conversion Agent or
its agent to be canceled by or at the direction of the Trustee, which shall dispose of the same as
provided in this Indenture. Upon conversions of beneficial interests in any Global Note, the
Trustee or the Notes Custodian, at the direction of the Trustee, shall reduce the aggregate
principal amount of Outstanding Notes represented by such Global Note to reflect the conversion
pursuant to Section 2.01(b).

Section 6.08. Provision in Case of Consolidation, Merger or Sale of Assets.

In the event of (i) any reclassification of the Common Stock (other than changes resulting
from a subdivision or combination); (ii) any consolidation, merger or binding share exchange
involving the Company; or (iii) any sale, assignment, conveyance, transfer, lease or other
disposition to another Person of the Company’s property and
assets as an entirety or substantially as an entirety; provided that in each case, holders of
the Common Stock are entitled to receive cash, securities or other property for such holders’
shares of Common Stock (the “Reference Property”), the Company or the

 

47

 

successor or the purchasing
Person, as the case may be, shall execute and deliver to the Trustee a supplemental indenture
providing that the Holder of each Note then Outstanding shall have the right thereafter, during the
period such Note shall be convertible as specified in Section 6.01 to convert such Note only into
the kind and amount of Reference Property 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 upon such transaction. For purposes of this Section 6.08, the kind and amount of
consideration that a Holder would have been entitled to receive as a holder of the Common Stock in
the case of reclassifications, consolidations, mergers, binding share exchanges, sales,
assignments, conveyances, transfers, leases or other dispositions that cause 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) will be deemed to be the weighted average of the kind
and amount of consideration received by the holders of the Common Stock that affirmatively make
such an election. The above provisions of this Section 6.08 shall similarly apply to successive
reclassifications, consolidations, mergers, share exchanges, sales, assignments, conveyances,
transfers, leases or other dispositions. Notice of the execution of such a supplemental indenture
shall be given by the Company to the Holder of each Note as provided in Section 12.02 promptly upon
such execution. If the Notes become convertible into Reference Property, the Company shall notify
the Trustee, issue a press release containing the relevant information and make the press release
available on the Company’s website.

Neither the Trustee nor any Conversion Agent shall be under any responsibility to determine
the correctness of any provisions contained in any such supplemental indenture relating either to
the kind or amount of shares of stock or other securities or property or cash receivable by Holders
of Notes upon the conversion of their Notes after any such consolidation, merger, conveyance,
transfer, sale or lease or to any such adjustment, but may accept as conclusive evidence of the
correctness of any such provisions, and shall be protected in relying upon, an Officers’
Certificate and an Opinion of Counsel with respect thereto, which the Company shall cause to be
furnished to the Trustee.

Section 6.09. Rights Issued in Respect of Common Stock.

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

	 	(a)	 	are deemed to be transferred with such shares of Common Stock;
	 
	 	(b)	 	are not exercisable; and
	 
	 	(c)	 	are also issued in respect of future issuances of Common Stock,

 

48

 

shall not be deemed distributed for purposes of Section 6.05(a) until the occurrence of the
earliest Trigger Event. In addition, in the event of any distribution of rights or warrants, or any
Trigger Event with respect thereto, that shall have resulted in an adjustment to the Conversion
Rate under Section 6.05(a), (A) in the case of any such rights or warrants that shall all have been
redeemed or repurchased without exercise by any holders thereof, the Conversion Rate shall be
readjusted upon such final redemption or repurchase to give effect to such distribution or Trigger
Event, as the case may be, as though it were a cash distribution, equal to the per share redemption
or repurchase price received by a holder of Common Stock with respect to such rights or warrants
(assuming such holder had retained such rights or warrants), made to all holders of Common Stock as
of the date of such redemption or repurchase, and (B) in the case of any such rights or warrants
all of which shall have expired without exercise by any holder thereof, the Conversion Rate shall
be readjusted as if such issuance had not occurred.

Section 6.10. Responsibility of Trustee and Conversion Agent for Conversion Provisions.

The Trustee and any Conversion Agent shall not at any time be under any duty or responsibility
to any Holder of Notes to determine whether any facts exist which may require any adjustment of the
Conversion Rate, or with respect to the nature or extent of any such adjustment when made, or with
respect to the method employed, herein or in any supplemental indenture provided to be employed, in
making the same, or whether a supplemental indenture need be entered into. Neither the Trustee nor
any Conversion Agent shall be accountable with respect to the validity or value (or the kind or
amount) of any Common Stock, or of any other securities or property or cash, which may at any time
be issued or delivered upon the conversion of any Note; and it or they do not make any
representation with respect thereto. Neither the Trustee nor any Conversion Agent shall be
responsible for any failure of the Company to make or calculate any cash payment or to issue,
transfer or deliver any shares of Common Stock or share certificates or other securities or
property or cash upon the surrender of any Note for the purpose of conversion; and the Trustee and
any Conversion Agent shall not be responsible for any failure of the Company to comply with any of
the covenants of the Company contained in this Article 6.

ARTICLE 7

Defaults and Remedies

Section 7.01. Events of Default.

Each of the following is an “Event of Default”:

(i) a default in the payment of any installment of interest upon any of the Notes as
and when the same shall become due and payable, and continuance of such default for a
period of 30 days;

 

49

 

(ii) a default in the payment of all or any part of the principal of any of the Notes
as and when the same shall become due and payable at Stated Maturity;

(iii) a default on the part of the Company in the performance, or breach by the
Company, of any other covenant or agreement on the part of the Company set forth in, or
deemed to be incorporated by reference to the Trust Indenture Act into, the Notes or in
this Indenture (other than a covenant or agreement in respect of which a default or breach
by the Company is specifically dealt with in this Section 7.01), and continuance of such
default or breach without cure or waiver for a period of 90 days after there has been
given, by registered or certified mail, to the Company by the Trustee, or to the Company
and the Trustee by the Holders of at least 25% in principal amount of the Notes at the time
Outstanding, a written notice specifying such failure and requiring the same to be
remedied;

(iv) the Company fails to pay the Redemption Price of any Note when due (including,
without limitation, on any Redemption Date);

(v) the Company fails to pay the Fundamental Change Repurchase Price of any Note when
due (including, without limitation, on any Fundamental Change Repurchase Date);

(vi) the Company fails to deliver shares of Common Stock and cash, if any, in payment
of fractional shares, Make-whole Premium amounts or amounts in lieu of any Additional
Shares upon conversion of Notes within the time period required by this Indenture;

(vii) the Company fails to timely provide the Fundamental Change Repurchase Right
Notice, if required by this Indenture, if such failure continues for 30 days after notice
to the Company of its failure to do so;

(viii) any indebtedness for money borrowed by the Company or any of its Subsidiaries
(all or substantially all of the outstanding voting securities of which are owned,
directly, or indirectly, by the Company) in an aggregate outstanding principal amount in
excess of $25.0 million is not paid at final maturity or upon acceleration and such
indebtedness is not discharged, or such acceleration is not cured or rescinded, within 10
days after written notice specifying such failure and requiring the same to be remedied;

(ix) a failure by the Company or any of its Subsidiaries (all or substantially all of
the outstanding voting securities of which are owned, directly, or indirectly, by the
Company) to pay final and non-appealable judgments entered by a court or courts of
competent jurisdiction, the aggregate uninsured or unbonded portion of which is at least
$25.0 million, if the judgments are not paid, discharged or stayed within 60 days;

 

50

 

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

(A) commences a voluntary case,

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

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

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

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

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

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

(C) orders the liquidation of the Company or any of its Subsidiaries

and the order or decree remains unstayed and in effect for 60 consecutive days.

Notwithstanding the foregoing, in addition to any Additional Interest as set forth in Section
2.10, at the election of the Company, the sole remedy for an Event of Default specified in Section
7.01(iii) relating to (x) any failure by the Company to comply with its reporting obligations to
the Trustee and the Commission as set forth in Section 3.07 or (y) any failure by the Company to
comply with the requirements of Section 314(a)(1) of the TIA (each, a “Reporting Default”) shall,
for the first 90 days after the occurrence of such Reporting Default, consist exclusively of the
right to receive Additional Interest on the Notes at an annual rate equal to 0.25% of the principal
amount of the Notes. In the event that the Company does not elect to pay the Additional Interest
upon a Reporting Default in accordance with this paragraph, the Notes will be subject to
acceleration as provided herein.

The Additional Interest will accrue on all Outstanding Notes from and including the date on
which a Reporting Default first occurs up to but not including the 90th day thereafter (or such
earlier date on which the Reporting Default shall have been cured or waived pursuant to Section
7.04). On such 90th day (or earlier, if such Reporting Default is cured or waived pursuant to
Section 7.04 prior to such 90th day), such Additional

 

51

 

Interest will cease to accrue and shall
become due and payable and, if such Reporting Default has not been cured or waived pursuant to
Section 7.04 prior to such 90th day, then the Trustee or the Holders of not less than 25% in
principal amount of the Notes may declare the principal of and accrued and unpaid interest on all
such Notes to be due
and payable immediately. This provision shall not affect the rights of Holders in the event of
the occurrence of any other Event of Default.

If the Company elects to pay the Additional Interest in accordance with this Section 7.01, the
Company shall notify, in the manner provided for in Section 12.02, the Holders and the Trustee of
such election at any time on or before the close of business on the date on which such Reporting
Default first occurs. If the Additional Interest is payable under this Section 7.01, the Company
shall deliver to the Trustee an Officers’ Certificate to that effect stating the date on which the
Additional Interest is payable. Unless and until a Responsible Officer receives at the Corporate
Trust Office such a certificate, the Trustee may assume without inquiry that no Additional Interest
is payable. If the Additional Interest has been paid by the Company directly to the Persons
entitled to such fee, the Company shall deliver to the Trustee an Officer’s Certificate setting
forth the particulars of such payment.

Section 7.02. Acceleration.

(a) In the case of an Event of Default specified in clause (x) or (xi) of Section 7.01 hereof
with respect to the Company, all Outstanding Notes will become due and payable immediately without
further action or notice by the Trustee or any Holder. Subject to Section 7.01, if any other Event
of Default occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate
principal amount of the then Outstanding Notes may declare all the Notes to be due and payable
immediately. Upon any such declaration, the Notes shall become due and payable immediately.

(b) Notwithstanding the foregoing, if an Event of Default specified in clause (viii) of
Section 7.01 occurs resulting in a declaration of acceleration of the Notes, such declaration of
acceleration shall be automatically annulled if such Event of Default triggering such declaration
of acceleration pursuant to clause (viii) of Section 7.01 shall have been remedied or cured by the
Company or any of its Subsidiaries or waived by the holders of the relevant indebtedness within 60
days of the declaration of acceleration with respect thereto and if (i) the annulment of the
acceleration of the Notes would not conflict with any judgment or decree of a court of competent
jurisdiction and (ii) all existing Events of Default, except nonpayment of principal or interest on
the Notes or nonpayment of the conversion obligation set forth in Section 6.02, in either case that
became due and payable solely because of the acceleration of the Notes, have been cured or waived.

(c) At any time after a declaration of acceleration with respect to the Notes as described in
this Section 7.02, the Holders of a majority in aggregate principal amount of the Outstanding Notes
may rescind and cancel such declaration and its consequences: (i)

 

52

 

if the rescission would not
conflict with any judgment or decree of a court of competent jurisdiction; (ii) if all existing
Events of Default have been cured or waived except nonpayment of principal or interest and
nonpayment of the conversion obligation set forth in Section 6.02 that has become due solely
because of the acceleration; (iii) to the extent the payment of such interest is lawful, interest
on overdue installments of interest and overdue principal, which has become due otherwise than by
such declaration of
acceleration, has been paid; and (iv) if the Company has paid the Trustee its reasonable
compensation and reimbursed the Trustee for its expenses, disbursements and advances (including,
but not limited to, reasonable attorneys’ fees and expenses). No such rescission shall affect any
subsequent Default or impair any right consequent thereto.

Section 7.03. Other Remedies.

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

The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not
produce any of them in the proceeding. A delay or omission by the Trustee or any Holder of a Note
in exercising any right or remedy accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default. All remedies are
cumulative to the extent permitted by law.

Section 7.04. Waiver of Past Defaults.

Holders of not less than a majority in aggregate principal amount of the then Outstanding
Notes by notice to the Trustee may on behalf of the Holders of all of the Notes waive an existing
Default and its consequences hereunder, except a continuing Default in:

(a) the payment of the principal of, or interest on, the Notes (including in connection with
an offer to purchase); provided, however, that the Holders of a majority in aggregate principal
amount of the then Outstanding Notes may rescind an acceleration and its consequences, including
any related payment default that resulted from such acceleration, in accordance with Section 7.02;

(b) the conversion of any Note into shares of Common Stock or cash, if any, in payment of
fractional shares, Make-whole Premium amounts or amounts in lieu of any Additional Shares in
accordance with the provisions of such Note and this Indenture; or

(c) compliance with any of the provisions of this Indenture that would require the consent of
the Holder of each Outstanding Note affected thereby.

 

53

 

Upon any such waiver, such Default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other Default or impair any right consequent thereon.

Section 7.05. Control by Majority.

Holders of a majority in aggregate principal amount of the then Outstanding Notes may direct
the time, method and place of conducting any proceeding for exercising any remedy available to the
Trustee or exercising any trust or power conferred on it.
However, the Trustee may refuse to follow any direction that conflicts with law or this
Indenture that the Trustee determines may be unduly prejudicial to the rights of other Holders of
Notes or that may involve the Trustee in personal liability.

Section 7.06. Limitation on Suits.

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

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

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

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

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

(e) during such 60-day period, Holders of a majority in aggregate principal amount of the then
Outstanding Notes do not give the Trustee a direction inconsistent with such request.

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

Section 7.07. Rights of Holders of Notes to Receive Payment or Effect Conversion.

Notwithstanding any other provision of this Indenture, the right of any Holder of a Note to
receive payment of principal and interest on the Note, on or after the respective due dates
expressed in the Note (including in connection with an offer to purchase), or to bring suit for the
enforcement of any such payment on or after such respective dates or

 

54

 

the right to convert Notes in
accordance with Article VI of this Indenture, shall not be impaired or affected without the consent
of such Holder.

Section 7.08. Collection Suit by Trustee.

If an Event of Default specified in Section 7.01(i) or (ii) hereof occurs and is continuing,
the Trustee is authorized to recover judgment in its own name and as trustee of an express trust
against the Company, and to enforce such judgment and collect the moneys adjudicated or decreed to
be payable, for the whole amount of principal of and interest remaining unpaid on the Notes,
interest on overdue principal and, to the extent lawful, interest and such further amount as shall
be sufficient to cover the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

Section 7.09. Trustee May File Proofs of Claim.

The Trustee is authorized to file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel) and the Holders of the Notes allowed in any judicial proceedings relative to the Company
(or any other obligor upon the Notes), its creditors or its property and shall be entitled and
empowered to collect, receive and distribute any money or other property payable or deliverable on
any such claims and any custodian in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Trustee, and in the event that the Trustee shall consent to the
making of such payments directly to the Holders, to pay to the Trustee any amount due to it for the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel, and any other amounts due the Trustee under Section 8.07. To the extent that the payment
of any such compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel, and any other amounts due the Trustee under Section 8.07 out of the estate in any such
proceeding, shall be denied for any reason, payment of the same shall be secured by a Lien on, and
shall be paid out of, any and all distributions, dividends, money, securities and other properties
that the Holders may be entitled to receive in such proceeding whether in liquidation or under any
plan of reorganization or arrangement or otherwise. Nothing herein contained shall be deemed to
authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any
plan of reorganization, arrangement, adjustment or composition affecting the Notes or the rights of
any Holder, or to authorize the Trustee to vote in respect of the claim of any Holder in any such
proceeding.

Section 7.10. Priorities.

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

 

55

 

First: to the Trustee (or any predecessor Trustee), its agents and attorneys for amounts due
under Section 8.07, including payment of all compensation, expenses and liabilities incurred, and
all advances made, by the Trustee and the costs and expenses of collection;

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

Third: to the Company or such party as a court of competent jurisdiction shall direct.

The Trustee may fix a record date and payment date for any payment to Holders of Notes
pursuant to this Section 7.10. If a record date is fixed, the Trustee shall send, by first class
mail, electronically or by any other means approved by the Trustee to the Holders of the Notes of
record a notice at least 30 days but not more than 60 days before
the payment date. Such notice shall state: (1) that a payment is being made pursuant to this
Section 7.10, (2) the relevant Default and the circumstances giving rise to the collection of money
pursuant to this Section 7.10, (3) the payment date and (4) the amount of such payment per $1,000
of Notes.

Section 7.11. Undertaking for Costs.

All parties to this Indenture agree, and each Holder of any Note by his acceptance thereof
shall be deemed to have agreed, in any suit for the enforcement of any right or remedy under this
Indenture or in any suit against the Trustee for any action taken or omitted by it as a Trustee, a
court in its discretion may require the filing by any party litigant in the suit of an undertaking
to pay the costs of the suit, and the court in its discretion may assess reasonable costs,
including reasonable attorneys’ fees and expenses, against any party litigant in the suit, having
due regard to the merits and good faith of the claims or defenses made by the party litigant. This
Section 7.11 does not apply to a suit by the Trustee, a suit by a Holder of a Note pursuant to
Section 7.06 hereof, or a suit by Holders of more than 10% in aggregate principal amount of the
then Outstanding Notes.

ARTICLE 8

Trustee

Section 8.01. Duties of Trustee.

(a) If an Event of Default has occurred and is continuing, the Trustee shall exercise the
rights and powers vested in it by this Indenture and use the same degree of care and skill in its
exercise as a prudent Person would exercise or use under the circumstances in the conduct of such
Person’s own affairs; provided, to the extent permitted by the TIA, that if an Event of Default
occurs and is continuing, the Trustee

 

56

 

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 Holders unless such Holders
have provided the Trustee indemnity or security reasonably satisfactory to the Trustee against
loss, liability or expense.

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

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

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

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

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

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

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

(d) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company.

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

(f) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or otherwise incur any financial liability in the performance of any of its duties hereunder or in
the exercise of any of its rights or powers, if it shall have

 

57

 

reasonable grounds to believe that
repayment of such funds or adequate indemnity against such risk or liability is not reasonably
assured to it.

(g) 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 8.01 and to
the provisions of the TIA.

(h) The Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders unless such Holders shall
have provided to the Trustee security or indemnity reasonably satisfactory to it against the costs,
expenses (including reasonable attorneys’ fees and expenses) and liabilities that might be incurred
by it in compliance with such request or direction.

Section 8.02. Rights of Trustee.

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

(b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate
or an Opinion of Counsel. The Trustee shall not be liable for any action it takes or omits to take
in good faith in reliance on the Officers’ Certificate or Opinion of Counsel.

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

(d) The Trustee shall not be liable for any action it takes or omits to take in good faith
which it believes to be authorized or within its rights or powers; provided, however, that the
Trustee’s conduct does not constitute willful misconduct or negligence.

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

(f) The Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, notice, request, direction,
consent, order, bond 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

 

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investigation, it shall be entitled to examine the
books, records and premises of the Company at reasonable times, in a reasonable manner and upon
reasonable advance notice, personally or by agent or attorney at the sole cost of the Company and
shall incur no liability or additional liability of any kind by reason of such inquiry or
investigation.

(g) The Trustee shall not be deemed to have knowledge of any Default or Event of Default
except, (i) during any period it is serving as Registrar and Paying Agent for the Notes, any Event
of Default occurring pursuant to Sections 7.01(i), 7.01(ii),
7.01(iv) or 7.01(vi) or (ii) any
Default or Event of Default of which a Responsible Officer shall have received written notification
or obtained actual knowledge. The term “actual knowledge” shall mean the actual fact or statement
of knowing by a Responsible Officer without independent investigation with respect thereto.

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

(i) In no event shall the Trustee be responsible or liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including, but not limited to, loss
of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss
or damage and regardless of the form of action.

(j) The rights, privileges, protections, immunities and benefits given to the Trustee,
including its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in
each of its capacities hereunder, and each agent, custodian and other Person employed to act
hereunder.

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

Section 8.03. Individual Rights of Trustee. The Trustee in its individual or any other
capacity may become the owner or pledgee of Notes and may otherwise deal with the Company or its
Affiliates with the same rights it would have if it were not Trustee. Any Paying Agent, Conversion
Agent, Registrar, co-registrar or co-paying agent may do the same with like rights. However, the
Trustee must comply with Sections 8.10 and 8.11. In addition, the Trustee shall be permitted to
engage in transactions with the Company; provided, however, that if the Trustee acquires any
conflicting interest (as such term is defined in Section 310(b) of the TIA) the Trustee must (i)
eliminate such conflict within

 

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90 days of acquiring such conflicting interest, (ii) apply to the
Commission for permission to continue acting as Trustee or (iii) resign as Trustee hereunder.

Section 8.04. Trustee’s Disclaimer. The Trustee shall not be responsible for and makes no
representation as to the validity or adequacy of this Indenture or the Notes, it shall not be
accountable for the Company’s use of the Notes or the proceeds from the Notes, and it shall not be
responsible for any statement of the Company in this Indenture or in any document issued or
offering circular (or similar document) used in connection with the sale of the Notes or in the
Notes other than the Trustee’s certificate of authentication or for the use or application of any
funds received by any Paying Agent other than the Trustee.

Section 8.05. Notice of Defaults. If a Default or Event of Default occurs and is continuing
and if a Responsible Officer has actual knowledge thereof, the Trustee shall mail to each Holder
notice of the Default or Event of Default within 90 days after it occurs unless such Default or
Event of Default has been cured or waived.

Except in the case of a Default or Event of Default in payment of principal of, or interest on
any Note (including payments pursuant to the required repurchase provisions of such Note, if any),
the Trustee may withhold the notice if and so long as its board of directors, a committee of its
board of directors or a committee of its Responsible Officers and/or a Responsible Officer in good
faith determines that withholding the notice is in the interests of registered Holders.

Section 8.06. Reports by Trustee to Holders. As promptly as practicable after each March 1
beginning with the March 1 following the date of this Indenture, and in any event prior to
September 1 in each year, the Trustee shall mail to each Holder a brief report dated as of such
March 1 that complies with TIA § 313(a), if and to the extent such report may be required by the
TIA. The Trustee also shall comply with TIA § 313(b). The Trustee shall also transmit by mail all
reports required by TIA
 § 313(c).

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

Section 8.07. Compensation and Indemnity. The Company covenants and agrees: (a) to pay to
the Trustee from time to time, and the Trustee shall be entitled to such compensation for all
services rendered by it hereunder as shall be agreed by the Company and the Trustee in writing
(which shall not be limited by any provision of law in regard to the compensation of a trustee of
an express trust); (b) to reimburse the Trustee and each predecessor Trustee upon its request for
all expenses, fees, disbursements and advances incurred or made by or on behalf of it in accordance
with any of the provisions of this Indenture (including the reasonable compensation, fees, and the
expenses and disbursements of its counsel and of all agents and other Persons not regularly in its

 

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employ), except any such expense, disbursement or advance as shall be determined to have been
caused by its own negligence or willful misconduct; and (c) to indemnify the Trustee and each
predecessor Trustee for, and to hold it harmless against, any loss, liability, damage, claim or
expense, including taxes, if any (other than taxes based upon, determined by or measured by the
income of the Trustee), incurred without negligence or willful misconduct on its part, arising out
of or in connection with the acceptance or administration of this Indenture or the trusts hereunder
and its duties hereunder, including enforcement of this Section 8.07. The obligations of the
Company under this Section to compensate and indemnify the Trustee and each predecessor Trustee and
to pay or reimburse the Trustee and each predecessor Trustee for expenses, fees, disbursements and
advances shall constitute an additional obligation hereunder and shall survive the satisfaction and
discharge of this Indenture, the resignation or removal of the Trustee or the termination of this
Indenture. To secure the obligations of the Company to the Trustee under this Section 8.07, the
Trustee shall have a prior Lien upon all property and funds held or collected by the Trustee as
such, except funds and property paid by the Company and held in trust for the benefit of the
Holders of particular Notes. When the Trustee incurs expenses or renders services after an Event of
Default specified in Section 7.01(x) or (xi) occurs, such expenses and compensation for services
are intended to constitute expenses of administration under Bankruptcy Law.

Section 8.08. Replacement of Trustee. The Trustee may resign at any time by so notifying the
Company. The Holders of a majority in principal amount of the Notes may remove the Trustee by so
notifying the Company and the Trustee in writing and the Company may appoint a successor Trustee.
The Company shall remove the Trustee if:

(i) the Trustee fails to comply with Section 8.10;

(ii) the Trustee is adjudged bankrupt or insolvent;

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

(iv) the Trustee otherwise becomes incapable of acting.

If the Trustee resigns or is removed by the Company or by the Holders of a majority in
principal amount of the Notes and the Company does not reasonably promptly appoint a successor
Trustee, or if a vacancy exists in the office of Trustee for any reason (the Trustee in such event
being referred to herein as the retiring Trustee), the Holders of a majority in aggregate principal
amount of the Notes may appoint a successor Trustee.

A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Thereupon the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers and duties of the
Trustee under this Indenture. The successor Trustee shall mail a notice

 

61

 

of its succession to
Holders. The retiring Trustee shall upon payment of its charges hereunder promptly transfer all
property held by it as Trustee to the successor Trustee, upon payment of any fees and expenses due
and owing to it hereunder.

If the Company has not appointed a successor Trustee within 60 days after the retiring Trustee
resigns or is removed, the retiring Trustee or the Holders of 10% in principal amount of the Notes
may petition, at the expense of the Company, any court of competent jurisdiction for the
appointment of a successor Trustee.

If the Trustee fails to comply with Section 8.10, unless the Trustee’s duty to resign is
stayed as provided in TIA § 310(b), any Holder may petition any court of competent jurisdiction for
the removal of the Trustee and the appointment of a successor Trustee.

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

Section 8.09. Successor Trustee by Merger. If the Trustee consolidates with, merges or
converts into, or transfers all or substantially all its corporate trust business or assets to,
another corporation or banking association, the resulting, surviving or transferee corporation
without any further act shall be the successor Trustee.

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

Section 8.10. Eligibility; Disqualification. There shall at all times be a Trustee hereunder
which shall be eligible to act as Trustee under Trust Indenture Act Sections 310(a)(1) and (2) and
which shall have a combined capital and surplus of at least $100,000,000, and have a Corporate
Trust Office in the Borough of Manhattan in New York City, State of New York. If such corporation
publishes reports of condition at least annually, pursuant to law or to the requirements of any
federal, state, territorial or District of Columbia supervising or examining authority, then for
the purposes of this Section, the combined capital and surplus of such corporation shall be deemed
to be its combined capital and surplus as set forth in its most recent report of condition so
published. If at any time the Trustee shall cease to be eligible in accordance with the provisions
of this Section, the Trustee shall resign immediately in the manner and with the effect hereinafter
specified in this Article. To the extent permitted by the Trust Indenture Act,

 

62

 

the Trustee shall
not be deemed to have a conflicting interest by virtue of being Trustee under (x) the indenture
dated as of April 10, 2006 between the Company and the Trustee and (y) the indenture dated as of
June 11, 2007 between the Company and the Trustee.

Section 8.11. Preferential Collection of Claims Against Company. If and when the Trustee
shall be or become a creditor of the Company, the Trustee shall comply with TIA § 311(a), excluding
any creditor relationship listed in TIA § 311(b). A Trustee who has resigned or been removed shall
be subject to TIA § 311(a) to the extent indicated.

ARTICLE 9

Satisfaction and Discharge of Indenture; Unclaimed Moneys

Section 9.01. Satisfaction and Discharge of Indenture. When (a) the Company delivers to the
Trustee all Outstanding Notes (other than Notes which have been destroyed, lost or stolen and which
have been replaced or paid as provided in Section 2.07) for cancellation or (b) all Outstanding
Notes have become due and payable and the Company deposits with the Trustee, the Paying Agent or
the Conversion Agent, as applicable, whether at the Stated Maturity, or any Fundamental Change
Repurchase Date or Redemption Date, upon conversion or otherwise, cash or shares of Common Stock
(or Reference Property) and cash, as applicable under this Indenture, sufficient to pay all amounts
due and owing on all Outstanding Notes (other than Notes which have been destroyed, lost or stolen
and which have been replaced or paid as provided in Section 2.07); and if, in any such case, the
Company shall also pay or cause to be paid all other sums payable hereunder by the Company, then
this Indenture shall cease to be of further effect, and the Trustee, on demand of the Company
accompanied by an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions
precedent relating to the satisfaction and discharge contemplated by this provision have been
complied with, and at the cost and expense of the Company, shall execute proper instruments
acknowledging such satisfaction and discharging this Indenture. The Company agrees to reimburse the
Trustee for any costs or expenses thereafter reasonably and properly
incurred, and to compensate the Trustee for any services thereafter reasonably and properly
rendered, by the Trustee in connection with this Indenture or the Notes.

Section 9.02. Application of Funds or Securities Deposited for Payment of Notes. All moneys
or securities deposited with the Trustee, Paying Agent or Conversion Agent, as applicable, shall be
held in trust and applied by it to the payment, either directly or through any Paying Agent or
Conversion Agent (other than the Company or any Subsidiary thereof, as applicable), to the Holders
of the Notes for the payment of which such moneys or securities have been deposited, of all sums
due and to become due thereon, but such money need not be segregated from other funds or securities
except to the extent required by law.

Section 9.03. Repayment by Trustee, Paying Agent or Conversion Agent. In connection with the
satisfaction and discharge of this Indenture with respect to the Notes,

 

63

 

all moneys or securities
then held by any Paying Agent or Conversion Agent under the provisions of this Indenture with
respect to the Notes shall, upon demand of the Company, be repaid to it and thereupon such Paying
Agent or Conversion Agent shall be released from all further liability with respect to such moneys
or securities.

Any moneys or securities deposited with or paid to the Trustee, Paying Agent or Conversion
Agent, as applicable, for the payment of any amount on the Notes and not applied but remaining
unclaimed for two years after the date upon which such amount shall have become due and payable,
shall, upon the written request of the Company and unless otherwise required by mandatory
provisions of applicable escheat or abandoned or unclaimed property law, be repaid to the Company
by the Trustee, Paying Agent or Conversion Agent, as applicable, and the Holder of the Notes shall,
unless otherwise required by mandatory provisions of applicable escheat or abandoned or unclaimed
property laws, thereafter look only to the Company for any payment which such Holder may be
entitled to collect, and all liability of the Trustee, Paying Agent or Conversion Agent with
respect to such moneys or securities shall thereupon cease; provided, however, that the Trustee,
Paying Agent or Conversion Agent, before being required to make any such repayment with respect to
moneys or securities deposited with it for any payment in respect of the Notes, shall, at the
expense of the Company, mail by first-class mail to Holders of the Notes at their addresses as they
shall appear on the Note Register notice that such moneys or securities remain and that, after a
date specified therein, which shall not be less than 30 days from the date of such mailing or
publication, any unclaimed balance of such money or securities then remaining will be repaid to the
Company.

ARTICLE 10

Supplemental Indentures and Amendments

Section 10.01. Without Consent of Holders. Without the consent of any Holders, the Company,
when authorized by a Board Resolution of the Company, and the Trustee, at any time and from time to
time, may amend, waive, modify or supplement this Indenture or the Notes for any of the following
purposes:

(a) to cure any ambiguity, omission, defect or inconsistency that does not adversely affect
the rights of any Holder in any material respect;

(b) to provide for the assumption of the Company’s obligations under this Indenture and the
Notes in accordance with Article 4;

(c) to secure the Notes or to provide guarantees of the Notes;

(d) to add covenants that would benefit the Holders of the Notes or to surrender any rights of
the Company under this Indenture;

 

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(e) to add Events of Default with respect to the Notes;

(f) to make any change that does not adversely affect any Outstanding Notes in any material
respect;

(g) to evidence and provide for the acceptance of the appointment of a successor Trustee
hereunder; or

(h) to provide for the issuance of Additional Notes in accordance with the limitations set
forth in this Indenture as of the date hereof.

Section 10.02. With Consent of Holders. With the written consent of the Holders of not less
than a majority in aggregate principal amount of the Outstanding Notes (including, without
limitation, Additional Notes, if any) delivered to the Company and the Trustee, the Company when
authorized by a Board Resolution, together with the Trustee, may amend, waive, modify or supplement
any other provision of this Indenture or the Notes; provided, however, that no such amendment,
waiver, modification or supplement may, without the written consent of the Holder of each
Outstanding Note affected thereby:

(a) change the Stated Maturity on any Note;

(b) reduce the principal amount of or interest (including the Make-whole Premium) on any Note
payable at Stated Maturity or upon redemption or repurchase;

(c) impair the Holder’s right to institute suit for the enforcement of any payment on the
Notes;

(d) modify the provisions with respect to the Company’s right to redeem Notes in a manner
adverse to Holders, including the Company’s right to pay the Redemption Price of the Notes selected
for redemption;

(e) modify the provisions with respect to a Holder’s rights to require the Company to
repurchase Notes upon a Fundamental Change in a manner adverse to the Holders of the Notes,
including the Company’s obligations to repurchase the Notes following a Fundamental Change;

(f) adversely affect the rights of Holders under the conversion provisions of the Notes;

(g) change the place or currency of payment of principal of or interest on any Note;

(h) make any change in the percentage of principal amount of Notes necessary to waive
compliance with provisions of this Indenture;

 

65

 

(i) make any change to this Section 10.02 or Section 10.03 (other than to increase the
percentage in principal amount required for modification or waiver or to provide for consent of
each affected Holder of Notes);

(j) waive a Default or Event of Default in the payment of principal or interest on the Notes
(except a rescission of acceleration of the Notes by the Holders thereof as provided in Section
7.02(b) of this Indenture and a waiver of the payment default that resulted from such
acceleration); or

(k) modify the ranking or priority of any Note in any manner adverse to the Holders of the
Notes.

Upon the written request of the Company accompanied by a copy of a Board Resolution
authorizing the execution of any such supplemental indenture or other agreement, instrument or
waiver, and upon the filing with the Trustee of evidence of the consent of Holders as aforesaid,
the Trustee shall join with the Company in the execution of such supplemental indenture or other
agreement, instrument or waiver.

It shall not be necessary for any act of Holders under this Section to approve the particular
form of any proposed supplemental indenture or other agreement, instrument or waiver, but it shall
be sufficient if such act shall approve the substance thereof.

Section 10.03. Execution of Supplemental Indentures, Agreements and Waivers. In executing,
any supplemental indenture, agreement, instrument or waiver permitted by this Article 10 or the
modifications thereby of this Indenture, the Trustee shall be provided with, and (subject to
Section 8.01 hereof) shall be fully protected in relying upon, an Opinion of Counsel and an
Officers’ Certificate from each obligor under the Notes entering into such supplemental indenture,
agreement, instrument or waiver, each stating that the execution of such supplemental indenture,
agreement, instrument or waiver (a) is authorized or permitted by this Indenture; (b) does not
violate the provisions of any agreement or instrument evidencing any other Indebtedness of the
Company, or any Subsidiary of the Company; and (c) that all conditions precedent in this Indenture
relating to such Supplemental Indenture have been complied with. The Trustee may, but shall not be
obligated to, enter into any such supplemental indenture, agreement, instrument or waiver which
affects the Trustee’s own rights, duties or immunities under this Indenture, the Notes or
otherwise.

Section 10.04. Effect of Supplemental Indentures. Upon the execution of any supplemental
indenture under this Article 10, this Indenture, the Notes, if applicable,
shall be modified in accordance therewith, and such supplemental indenture shall form a part
of this Indenture and the Notes, if applicable, as the case may be, for all purposes; and every
Holder of Notes theretofore or thereafter authenticated and delivered hereunder shall be bound
thereby.

 

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Section 10.05. Compliance with Trust Indenture Act. Every supplemental indenture or
amendment to this Indenture or the Notes shall comply with the TIA as then in effect.

Section 10.06. Reference in Notes to Supplemental Indentures. Notes authenticated and
delivered after the execution of any supplemental indenture pursuant to this Article may, and shall
if required by the Trustee, bear a notation in a form approved by the Trustee as to any matter
provided for in such supplemental indenture. If the Company shall so determine, new Notes so
modified as to conform, in the opinion of the Trustee and the Board of Directors of the Company, to
any such supplemental indenture may be prepared and executed by the Company and authenticated and
delivered by the Trustee, at the expense of the Company, upon a Company Order in exchange for
Outstanding Notes.

Section 10.07. Revocation and Effect of Consents and Waivers. A consent to an amendment or a
waiver by a Holder of a Note shall bind the Holder and every subsequent Holder of that Note or
portion of the Note that evidences the same debt as the consenting Holder’s Note, even if notation
of the consent or waiver is not made on the Note. However, any such Holder or subsequent Holder may
revoke the consent or waiver as to such Holder’s Note or portion of the Note if the Trustee
receives the notice of revocation before the date the amendment or waiver becomes effective. After
an amendment or waiver becomes effective, it shall bind every Holder. An amendment or waiver made
pursuant to Section 10.02 shall become effective upon receipt by the Trustee of the requisite
number of written consents.

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

Section 10.08. Notation on or Exchange of Notes. If an amendment changes the terms of a
Note, the Trustee may require the Holder of the Note to deliver it to the Trustee. The Trustee may
place an appropriate notation on the Note regarding the changed terms and return it to the Holder.
Alternatively, if the Company or the Trustee so determines, the Company in exchange for the Note
shall issue and the Trustee, at the expense of the Company, shall authenticate a new Note that
reflects the changed terms.
Failure to make the appropriate notation or to issue a new Note shall not affect the validity
of such amendment.

 

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ARTICLE 11

Offer to Repurchase Upon a Fundamental Change

Section 11.01. Purchase of Notes at Option of Holder Upon a Fundamental Change. (a) Subject
to Section 11.04 hereof, upon the occurrence of a Fundamental Change at any time prior to Stated
Maturity, each Holder may require the Company to repurchase the Notes on a date chosen by the
Company in its sole discretion that is no less than 20 Business Days and no more than 35 Business
Days (subject to extension to comply with applicable law) after the Company sends the Fundamental
Change Repurchase Right Notice (the “Fundamental Change Repurchase Date”), and the Company shall
repurchase on the Fundamental Change Repurchase Date, any or all Notes submitted for repurchase for
cash, at a price equal to 100% of the aggregate principal amount thereof plus accrued and unpaid
interest, if any, to but not including the Fundamental Change Repurchase Date (the “Fundamental
Change Repurchase Price”), unless such Fundamental Change Repurchase Date falls after a Regular
Record Date and on or prior to the corresponding Interest Payment Date, in which case the Company
shall pay the full amount of accrued and unpaid interest payable on such Interest Payment Date to
the Holder of record at the close of business on the corresponding Regular Record Date. The
principal amount of the Notes submitted for repurchase shall be equal to $2,000 or an integral
multiple of $1,000 in excess thereof and the principal amount of such Notes to remain Outstanding,
if any, shall be equal to $2,000 or an integral multiple of $1,000 in excess thereof.

(b) Notwithstanding anything contained herein to the contrary, Holders of the Notes will not
have the right to require the Company to repurchase any Notes pursuant to the occurrence of any of
the events identified in clauses (2) or (3) of the definition of Fundamental Change (and the
Company will not be required to deliver the Fundamental Change Repurchase Right Notice incidental
thereto), if at least 90% of the consideration paid for the Common Stock (excluding cash payments
for fractional shares, cash payments made pursuant to dissenters’ appraisal rights and cash
dividends) in a Fundamental Change under clause (2) or clause (3) of the definition of Fundamental
Change consists of shares of common stock traded on The NASDAQ Global Select Market, The NASDAQ
Global Market, The New York Stock Exchange or another U.S. national securities exchange or quoted
on an established automated over-the-counter trading market in the United States (or will be so
traded or quoted immediately following the merger or consolidation) and, as a result of such
Fundamental Change, the Notes become convertible into such shares of such common stock.

(c) At least 20 Business Days prior to the anticipated effective date of a Fundamental Change
(or if the Company does not have actual notice of a Fundamental Change 20 Business Days prior to
the effective date, as soon as the Company has actual notice of such Fundamental Change), the
Company will provide to all Holders of the Notes, the Trustee, the Paying Agent, the Registrar and
the Conversion Agent a written notice (the “Fundamental Change Notice”) stating:

 

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(i) if applicable, whether the Company will adjust the Conversion Rate pursuant to Section
6.05(e) hereof;

(ii) the anticipated effective date of the Fundamental Change; and

(iii) whether the Company expects that Holders will have the right to require the
Company to repurchase their Notes as described in this Article 11.

Section 11.02. Fundamental Change Repurchase Right Notice. On or before the 20th Trading Day
after the effective date of a Fundamental Change, the Company will provide to all Holders of the
Notes and the Trustee, the Paying Agent, the Registrar and the Conversion Agent a notice of the
occurrence of the Fundamental Change and of the resulting repurchase right (the “Fundamental Change
Repurchase Right Notice”). Each Fundamental Change Repurchase Right Notice shall state:

(i) the events causing the Fundamental Change;

(ii) if the Company is required to adjust the Conversion Rate and related conversion
obligation as described in Section 6.05(e) hereof pursuant to a Make-whole Fundamental
Change, the Conversion Rate, any adjustments to the Conversion Rate and whether the Company
shall deliver cash in lieu of the Additional Shares as described in
 Section 6.05(e);

(iii) the effective date, if applicable;

(iv) the last date on which a Holder may exercise such repurchase right;

(v) the Fundamental Change Repurchase Price;

(vi) the Fundamental Change Repurchase Date;

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

(viii) that the Notes with respect to which the Fundamental Change Repurchase Right
Notice has been given may be converted only if the Holder thereof withdraws any Fundamental
Change Repurchase Notice previously delivered by such Holder in accordance with the terms
of this Indenture; and

(ix) the procedures that Holders must follow to require the Company to repurchase
their Notes.

Section 11.03. Fundamental Change Repurchase Notice. To exercise its right specified in
Section 11.01, a Holder must deliver, before the close of business on the second Business Day
immediately preceding the Fundamental Change Repurchase Date, the Notes to be repurchased, together
with a repurchase notice (a “Fundamental Change

 

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Repurchase Notice”) duly completed in accordance with the requirements below, to the Paying
Agent. The Fundamental Change Repurchase Notice must state:

(i) if such Holder holds Definitive Notes, the certificate numbers of the Notes which
the Holder will deliver for repurchase;

(ii) the portion of the principal amount of the Notes which the Holder will deliver to
be repurchased, which portion must be in a principal amount of $2,000 or an integral
multiple of $1,000 in excess thereof; and

(iii) that such Notes are to be purchased by the Company as of the Fundamental Change
Repurchase Date pursuant to the terms and conditions specified in the Notes and in this
Indenture.

If the Notes are not in certificated form, the Fundamental Change Repurchase Notice must
comply with the Applicable Procedures.

To receive payment of the Fundamental Change Repurchase Price, Holders must either effect
book-entry transfer of beneficial interests in a Global Note in accordance with the Applicable
Procedures or deliver the Definitive Notes, together with necessary endorsement, to office of the
Paying Agent with, or at any time after delivery of, the Fundamental Change Repurchase Notice.
Holders will receive payment of the Fundamental Change Repurchase Price, subject to the Paying
Agent holding money or securities sufficient to make such payment on the Fundamental Change
Repurchase Date, promptly following the later of (a) the Fundamental Change Repurchase Date and
(b) the time of book-entry transfer or the delivery of the Notes by the Holder thereof in the
manner required by Section 11.03; provided, however, that such payment shall be so paid pursuant to
this Article 11 only if the Notes so delivered to the Paying Agent shall conform in all respects to
the description thereof in the related Fundamental Change Repurchase Notice.

Section 11.04. Effect of Purchase of Notes Upon a Fundamental Change. Unless the Company
defaults in the payment for the Notes to be repurchased pursuant to this Article 11, if the Payment
Agent, other than the Company or a Subsidiary thereof, holds money or securities sufficient to pay
the Fundamental Change Repurchase Price of such Notes on the Fundamental Change Repurchase Date,
then such Notes will cease to be Outstanding and interest, if any, shall cease to accrue on the
Notes or portions thereof delivered for repurchase on the Fundamental Change Repurchase Date
(whether or not book-entry transfer of the Notes is made and whether or not the Notes are delivered
to the Paying Agent) and all other rights of the Holders of the Notes to be repurchased pursuant to
this Article 11 shall terminate (other than the right to receive the Fundamental Change Repurchase
Price upon delivery or transfer of the Notes).

Section 11.05. Covenant to Comply with Securities Laws Upon Purchase of Notes. The Company
will comply with the requirements of Rule 13e-4 and Rule 14e-, if

 

70

 

applicable, under the Exchange Act, file a Schedule TO or any successor or similar schedule,
if required, under the Exchange Act and otherwise comply with all applicable federal and state
securities laws in connection with the repurchase of the Notes by the Company upon a Fundamental
Change. To the extent that the provisions of any securities laws or regulations conflict with the
provisions of this Article 11, the Company will comply with the applicable securities laws and
regulations and will not be deemed to have breached its obligations under this Article 11 by virtue
of such conflict.

Section 11.06. Covenants of Company and Paying Agent Upon Purchase of Notes. On or before
the Fundamental Change Repurchase Date, the Company will, to the extent lawful:

(i) accept for payment all Notes or portions thereof properly tendered;

(ii) deposit with the Paying Agent an amount equal to the payment in respect of all
Notes or portions of Notes properly tendered; and

(iii) deliver or cause to be delivered to the Trustee the Notes so accepted together
with an Officers’ Certificate stating the aggregate principal amount of Notes or portions
of Notes being purchased by the Company in accordance with the terms of this Article 11.

The Paying Agent will promptly mail to each Holder of Notes properly tendered the payment for
such Notes, and the Trustee will promptly authenticate and mail (or cause to be transferred by book
entry) to each Holder a new Note equal in principal amount to any unpurchased portion of the Notes
surrendered, if any; provided that each new Note will be in a principal amount of $2,000 and
integral multiples of $1,000 in excess thereof.

Section 11.07. Withdrawal of Fundamental Change Repurchase Notice and Effect Thereof. Notes
in respect of which a Fundamental Change Repurchase Notice has been given by the Holder thereof may
not be converted pursuant to Article 6 on or after the date of the delivery of such Fundamental
Change Repurchase Notice unless such Fundamental Change Repurchase Notice has first been validly
withdrawn as specified in this Section 11.07. Notwithstanding anything contained herein to the
contrary, any Holder that has delivered to the Paying Agent the Fundamental Change Repurchase
Notice contemplated by Section 11.03 hereof shall have the right to withdraw such Fundamental
Change Repurchase Notice, in whole or in part, by means of a written notice of withdrawal delivered
to the Paying Agent at any time prior to the close of business on the second Business Day
immediately prior to the Fundamental Change Repurchase Date, specifying:

(i) the principal amount of the Notes with respect to which such notice of withdrawal
is being submitted;

 

71

 

(ii) if Definitive Notes have been issued, the certificate numbers of the Definitive
Notes with respect to which such notice of withdrawal is being submitted; and

(iii) the principal amount, if any, of such Notes that remain subject to the original
Fundamental Change Repurchase Notice.

If the Notes with respect to which the notice of withdrawal is being submitted are not in
certificated form, the notice of withdrawal must comply with the Applicable Procedures.

Section 11.08. Covenants of Trustee Upon Purchase of Notes. The Trustee shall be under no
obligation to ascertain the occurrence of a Fundamental Change or to give notice to the Holders
with respect thereto. The Trustee may conclusively assume, in the absence of written notice to the
contrary from the Company, that no Fundamental Change has occurred.

ARTICLE 12

Miscellaneous

Section 12.01. Trust Indenture Act Controls. If any provision of this Indenture limits,
qualifies or conflicts with another provision which is required to be included in this Indenture by
the TIA, the provision required by the TIA shall control.

Section 12.02. Notices. Any notice or communication shall be in writing and delivered in
person or mailed by first-class mail addressed as follows:

If to the Company:

Ciena Corporation

1201 Winterson Road

Linthicum, MD 21090

Attn: Chief Financial Officer

If to the Trustee:

The Bank of New York Mellon

101 Barclay Street, Floor 8W

New York, New York 10286

Attn: Corporate Trust Administration

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

 

72

 

Any notice or communication mailed to a Holder shall be mailed to the Holder at the Holder’s
address as it appears on the Note Register and shall be sufficiently given if so mailed within the
time prescribed. Notices shall be deemed to have been given as of the date of mailing.

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

Section 12.03. Communication by Holders with Other Holders. Holders may communicate pursuant
to TIA § 312(b) with other Holders with respect to their rights under this Indenture or the Notes.
The Trustee shall comply with TIA § 312(b). The Company, the Trustee, the Registrar and anyone else
shall have the protection of TIA § 312(c).

Section 12.04. Certificate and Opinion as to Conditions Precedent. Upon any request or
application by the Company to the Trustee to take or refrain from taking any action under this
Indenture, the Company shall deliver to the Trustee an Officers’ Certificate stating that all
conditions precedent (including covenants compliance with which constitutes a condition precedent),
if any, provided for in this Indenture relating to the proposed action have been complied with and
an Opinion of Counsel stating that in the opinion of such counsel, all such conditions precedent
(including covenants compliance with which constitutes a condition precedent), if any, have been
complied with.

Section 12.05. Statements Required in Certificate or Opinion. Each certificate or opinion
with respect to compliance with a covenant or condition provided for in this Indenture shall
include:

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

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

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

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

 

73

 

In giving an Opinion of Counsel, counsel may rely as to factual matters on an Officers’
Certificate or such other certificates of Officer(s) as it may deem appropriate and on certificates
of public officials.

Section 12.06. When Notes Disregarded. In determining whether the Holders of the required
principal amount of Notes have concurred in any direction, waiver or consent, Notes owned by the
Company or by any Person directly or indirectly controlling or controlled by or under direct or
indirect common control with the Company shall be disregarded and deemed not to be Outstanding,
except that, for the purpose of determining whether the Trustee shall be protected in relying on
any such direction, waiver or consent, only Notes which a Responsible Officer of the Trustee
actually knows are so owned shall be so disregarded. Also, subject to the foregoing, only Notes
Outstanding at the time shall be considered in any such determination.

Section 12.07. Rules by Trustee, Paying Agent and Registrar. The Trustee may make reasonable
rules for action by, or a meeting of, Holders. The Registrar and the Paying Agent may make
reasonable rules for their functions.

Section 12.08. Governing Law. This Indenture and the Notes shall be governed by, and
construed in accordance with, the laws of the State of New York.

Section 12.09. No Recourse Against Others. No recourse for the payment of the principal of,
or interest on any Note and no recourse under or upon any obligation, covenant, agreement of the
Company or of a guarantor in this Indenture, the Notes, or in any supplemental indenture, or
because of the creation of any Indebtedness represented thereby, shall be had against any
incorporator, stockholder, employee, agent, officer, director, or subsidiary, past, present or
future, of the Company or of any successor corporation or entity, whether by virtue of any
constitution, statute or rule of law, or by the enforcement of any assessment or penalty or
otherwise, it being understood that all such liability is hereby waived and released as a condition
to, and as a consideration for, the execution and delivery of this Indenture and the issue of the
Notes.

Section 12.10. Successors. All agreements of the Company in this Indenture and the Notes
shall bind its successors. All agreements of the Trustee in this Indenture shall bind its
successors.

Section 12.11. Multiple Originals. The parties may sign any number of copies of this
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement. One signed copy is enough to prove this Indenture.

Section 12.12. Force Majeure. In no event shall the Trustee be responsible or liable for any
failure or delay in the performance of their obligations hereunder arising out of or caused by,
directly or indirectly, forces beyond their control, including, without limitation, strikes, work
stoppages other than of the Trustee, respectively, accidents, acts of war or terrorism, civil or
military disturbances, nuclear or natural catastrophes or acts

 

74

 

of God, and interruptions, loss or malfunctions of utilities; it being understood that the Company
or Trustee, as applicable, 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 12.13. Not Responsible for Recitals or Issuance of Notes. The recitals contained
herein and in the Notes, except the Trustee’s certificates of authentication, shall be taken as the
statements of the Company, and the Trustee or any Authenticating Agent assumes no responsibility
for their correctness. The Trustee makes no representations as to the validity or sufficiency of
this Indenture or of the Securities. The Trustee or any Authenticating Agent shall not be
accountable for the use or application by the Company of Notes or the proceeds thereof.

Section 12.14. Waiver of Jury Trial. EACH OF THE COMPANY 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 OR THE TRANSACTION
CONTEMPLATED HEREBY.

[Remainder of Page Intentionally Left Blank]

 

75

 

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

	 	 	 	 	 
	 	CIENA CORPORATION

 	 
	 	By:  	/s/ Gary B. Smith
 	 
	 	 	Name:  	Gary B. Smith 	 
	 	 	Title:  	Chief Executive
Officer and President 	 
	 
	 	THE BANK OF NEW YORK MELLON, 
   as Trustee

 	 
	 	By:  	/s/ Cheryl L. Clarke
 	 
	 	 	Name:  	Cheryl L. Clarke 	 
	 	 	Title:  	Vice President 	 
	 

 

S-1

 

Exhibit A

[FORM OF FACE OF SECURITY]

CUSIP/ISIN [                    ]/[                    ]

4.0% Convertible Senior Notes due 2015

			
	 	 	 
	No.
	 	$

Ciena Corporation

promises to pay to

or registered assigns,

the principal sum of

Dollars on March 15, 2015.

Interest Payment Dates: March 15 and September 15

Regular Record Dates: March 1 and September 1

Dated:
                            , 2010

	 	 	 	 	 
	 	Ciena Corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	This is one of the Notes referred to in the

within-mentioned Indenture:

THE BANK OF NEW YORK MELLON, 

as Trustee

 	 	 
	By:  	 	 	 
	 	Authorized Signatory 	 	 
	 	 	 	 

 

A-1

 

	 	 	 	 	 

[INCLUDE IF A GLOBAL NOTE]

[THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND
IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DEPOSITARY”),
OR A NOMINEE OF THE DEPOSITARY, WHICH MAY BE TREATED BY THE COMPANY, THE TRUSTEE AND ANY AGENT
THEREOF AS THE OWNER AND HOLDER OF THIS SECURITY FOR ALL PURPOSES. UNLESS THIS CERTIFICATE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITARY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
HAS AN INTEREST HEREIN.

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, 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 TRANSFERS OF PORTIONS OF THIS GLOBAL
SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE
INDENTURE REFERRED TO ON THE REVERSE HEREOF.]

[INCLUDE IF A RESTRICTED SECURITY]

[THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE SECURITIES ACT), AND
THIS SECURITY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION
OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE
SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE
SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.

 

A-2

 

THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS SECURITY MAY
BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) TO A PERSON WHOM THE SELLER
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) PURSUANT TO ANY OTHER
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, INCLUDING RULE 144 UNDER THE
SECURITIES ACT (IF AVAILABLE) SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH
OFFER, SALE OR TRANSFER PURSUANT TO THIS CLAUSE (II) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, (III) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR (IV) TO THE COMPANY OR ANY OF
ITS SUBSIDIARIES, IN EACH OF CASES (I) THROUGH (IV) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES
LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS
REQUIRED TO, NOTIFY ANY SUBSEQUENT PURCHASER OF THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS
REFERRED TO IN (A) ABOVE.]

 

A-3

 

[Back of Note]

4.0% Convertible Senior Notes due 2015

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

(1) Interest. Ciena Corporation, a Delaware corporation (the “Company”), promises to pay
interest on the principal amount of this Note at 4.0% per annum from March 15, 2010 until Stated
Maturity. The Company will pay interest, if any, semi-annually in arrears on March 15 and September
15 of each year (subject to limited exceptions if the Note is converted, redeemed or purchased
prior to such date), or if any such day is not a Business Day, on the immediately following
Business Day (each, an “Interest Payment Date”). Interest on the Notes will accrue from the most
recent date to which interest has been paid or, if no interest has been paid, from March 15, 2010;
provided that if there is no existing Default in the payment of interest, and if this Note is
authenticated between a Regular Record Date (as defined below) and the next succeeding Interest
Payment Date, interest shall accrue from such next succeeding Interest Payment Date; provided,
further, that the first Interest Payment Date shall be September 15, 2010. The Company will pay
interest on overdue principal from time to time on demand at the rate then in effect to the extent
lawful; it will pay interest on overdue installments of interest, if any (without regard to any
applicable grace periods), from time to time on demand at the same rate to the extent lawful.
Interest will be computed on the basis of a 360-day year of twelve 30-day months. All references
to “interest” in this Note are deemed to include Additional Interest, if any, payable pursuant to
Section 2.10 or Section 7.01 of the Indenture, as applicable.

(2) Method of payment. The Company will pay interest on the Notes, if any, to the Persons who
are registered Holders of Notes at the close of business on March 1 or September 1 next preceding
the Interest Payment Date (each a “Regular Record Date”), even if such Notes are canceled after
such Regular Record Date and on or before such Interest Payment Date. The Notes will be payable as
to principal, if any, and interest at the office or agency of the Company maintained for such
purpose within or without the City and State of New York, or, at the option of the Company, such
payments may be made by check mailed to the Holders at their addresses set forth in the Note
Register; provided that the Notes represented by a Global Note will be paid by wire transfer of
immediately available funds to the accounts specified by the Depositary in accordance with the
settlement procedures of the Depositary, and all other Notes with an aggregate principal amount in
excess of $2 million will be paid by wire transfer of immediately available funds if the Holders
have provided wire transfer instructions at least 10 Business Days prior to the payment date to the
Company or the Paying Agent. Such payment will be in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and private debts.

(3) Paying agent, registrar and conversion agent. Initially, The Bank of New York Mellon, the
Trustee under the Indenture, will act as Paying Agent, Registrar and

 

A-4

 

Conversion Agent. The Company may change any Paying Agent, Registrar or Conversion Agent without
notice to any Holder. The Company or any of its Subsidiaries may act in any such capacity.

(4) Indenture. The Company issued the Notes under the Indenture dated as of March 15, 2010
(the “Indenture”) between the Company and the Trustee. The terms of the Notes include those stated
in the Indenture and those made part of the Indenture by reference to the TIA. The Notes are
subject to all such terms, and Holders are referred to the Indenture and the TIA for a statement of
such terms. To the extent any provision of this Note conflicts with the express provisions of the
Indenture, the provisions of the Indenture shall govern and be controlling. The Notes are unsecured
obligations of the Company.

(5) Optional Redemption. No sinking fund is provided for the Notes. The Notes are not
redeemable by the Company prior to March 15, 2013. On or after March 15, 2013, the Notes may be
redeemed for cash in whole or in part at the option of the Company if the Closing Sale Price of the
Common Stock has been greater than or equal to 150% of the Conversion Price on at least 20 Trading
Days during any 30 consecutive Trading Day period ending on the date on which the Company provides
the Notice of Redemption. The redemption price (the “Redemption Price”) for any such redemption is
equal to (i) 100% of the principal of Notes to be redeemed, plus (ii) accrued and unpaid interest
(including any Additional Interest) to, but excluding, the Redemption Date, plus (iii) the
Make-whole Premium. Upon any redemption, the Company will pay cash to converting Holders the
Make-whole Premium payment on all Notes called for redemption and converted during the period from
the date the Company mailed the Notice of Redemption to and including the Redemption Date.

(6) Repurchase at the option of holder upon a fundamental change. Upon the occurrence of a
Fundamental Change at any time prior to Stated Maturity, each Holder may require the Company to
repurchase the Notes on a date chosen by the Company in its sole discretion that is no less than 20
Business Days and no more than 35 Business Days after the mailing of the Fundamental Change
Repurchase Right Notice (the “Fundamental Change Repurchase Date”), and the Company shall
repurchase on the Fundamental Change Repurchase Date, any or all Notes submitted for repurchase for
cash, at a price equal to 100% of the aggregate principal amount thereof plus accrued and unpaid
interest, if any, to but not including the Fundamental Change Repurchase Date, unless such
Fundamental Change Repurchase Date falls after a Regular Record Date and on or prior to the
corresponding Interest Payment Date, in which case the Company shall pay the full amount of accrued
and unpaid interest payable on such Interest Payment Date to the Holder of record at the close of
business on the corresponding Regular Record Date. At least 20 Business Days prior to the
anticipated effective date of a Fundamental Change (or if the Company does not have actual notice
of a Fundamental Change 20 Business Days prior to the effective date, as soon as the Company has
actual notice of such Fundamental Change), the Company will provide to all Holders, the Trustee,
the Paying Agent, the Registrar and the Conversion Agent a Fundamental Change Notice as

 

A-5

 

required by the Indenture. On or before the 20th Trading Day after the effective date of a
Fundamental Change, the Company will provide to all Holders, the Trustee, the Paying Agent, the
Registrar and Conversion Agent a Fundamental Change Repurchase Right Notice.

(7) Conversion. At any time prior to the close of business on the date of Stated Maturity,
Holders of the Notes may surrender any portion of the principal amount of any Note that is an
integral multiple of $1,000 for conversion (provided that the principal amount of such Note to
remain Outstanding after such conversion is equal to $2,000 or any integral multiple of $1,000 in
excess thereof) into fully paid and non-assessable shares of Common Stock at the Conversion Rate,
determined as provided in the Indenture, in effect at the time of conversion.

(8) Denominations, transfer, exchange. The Notes are in registered form without coupons in
denominations of $2,000 and an integral multiple of $1,000 in excess thereof. The transfer of Notes
may be registered and Notes may be exchanged as provided in the Indenture. The Registrar and the
Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer
documents and the Company may require a Holder to pay any taxes and fees required by law or
permitted by the Indenture. The Company need not exchange or register the transfer of any Note or
portion of a Note selected for conversion or repurchase, except for the unconverted or
unrepurchased portion of any Note being converted or repurchased in part. Also, the Company need
not exchange or register the transfer of any Notes during the period between a Regular Record Date
and the corresponding Interest Payment Date.

(9) Persons deemed owners. The registered Holder of a Note may be treated as its owner for all
purposes.

(10) Amendment, supplement and waiver. Subject to certain exceptions, the Indenture and the
Notes may be amended or supplemented with the consent of the Holders of at least a majority in
aggregate principal amount of the then Outstanding Notes, including Additional Notes, if any, and
any existing Default or compliance with any provision of the Indenture and the Notes may be waived
with the consent of the Holders of a majority in aggregate principal amount of the then Outstanding
Notes, including Additional Notes, if any, voting as a single class. Without the consent of any
Holder of a Note, the Indenture and the Notes may be amended or supplemented to cure any ambiguity,
omission, defect or inconsistency that does not adversely affect the rights of any Holder in any
material respect, to provide for a successor Trustee under the Indenture, to provide for the
assumption of the Company’s obligations under the Indenture or the Notes in accordance with the
provisions in the Indenture, to comply with requirements of the Commission in order to effect or
maintain the qualification of the Indenture under the TIA, to secure the Notes or provide
guarantees of the Notes, to provide for the issuance of Additional Notes, to add covenants that
would benefit the Holders of the Notes or to surrender any rights of the Company under the
Indenture, to add Events of Default with respect to the Notes, to make any change that does not

 

A-6

 

adversely affect any Outstanding Notes in any material respect, or to evidence and provide for the
acceptance of the appointment of a successor Trustee under the Indenture.

(11) Trustee dealings with company. The Trustee, in its individual or any other capacity, may
make loans to, accept deposits from, and perform services for the Company or its Affiliates, and
may otherwise deal with the Company or its Affiliates, as if it were not the Trustee.

(12) No recourse against others. A director, officer, employee, incorporator or stockholder of
the Company, as such, will not have any liability for any obligations of the Company under the
Notes or the Indenture or for any claim based on, in respect of, or by reason of, such obligations
or their creation. Each Holder by accepting a Note waives and releases all such liability. The
waiver and release are part of the consideration for the issuance of the Notes.

(13) Open market purchases. The Company may, to the extent permitted by applicable law, at any
time, and from time to time, purchase Notes at any price in the open market or otherwise.

(14) Authentication. This Note will not be valid until authenticated by the manual signature
of the Trustee or an Authenticating Agent.

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

(16) CUSIP numbers. Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the
Notes, and the Trustee may use CUSIP numbers in notices of repurchase or conversion as a
convenience to Holders. No representation is made as to the accuracy of such numbers either as
printed on the Notes or as contained in any notice of repurchase or conversion, and reliance may be
placed only on the other identification numbers placed thereon.

(17) Governing law. THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO
CONSTRUE THE INDENTURE AND THIS NOTE WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF
LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED
THEREBY.

 

A-7

 

ASSIGNMENT FORM

To assign this Note, fill in the form below:

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

	 	 
	 

	 	 
	 

	 	(Insert assignee’s legal name)

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

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

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

Date:                     
                    

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

Signature Guarantee*:                     
                    

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

 

A-8

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

The following exchanges of a part of this Global Note for an interest in another Global Note
or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an
interest in this Global Note, have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Principal	 	 	 	 
	 	 	Amount of	 	 	Amount of	 	 	amount of this	 	 	Signature of	 
	 	 	decrease in	 	 	increase in	 	 	Global Note	 	 	authorized	 
	 	 	principal	 	 	principal	 	 	following such	 	 	officer of	 
	 	 	amount of this	 	 	amount of this	 	 	decrease (or	 	 	Trustee or Notes	 
	Date of exchange	 	Global Note	 	 	Global Note	 	 	increase)	 	 	Custodian	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

A-9

 

Exhibit B

FORM OF CONVERSION NOTICE

Ciena Corporation

The Bank of New York Mellon

	Re:	 	4.0% Convertible Senior Notes due 2015

CONVERSION NOTICE (CUSIP [                    ])

Reference is hereby made to the Indenture, dated as of March 15, 2010 (the “Indenture”),
between Ciena Corporation, as issuer (the “Company”), and The Bank of New York Mellon, as trustee
(the “Trustee”). Capitalized terms used but not defined herein shall have the meanings given to
them in the Indenture.

                     (the “Owner”) owns and proposes to convert the Note[s] or interest in such
Note[s] specified herein, in the principal amount of $                      in such Note[s] or interests (the
“Conversion”) pursuant to Article 6 of the Indenture. In connection with the Conversion, the Owner
hereby certifies that, as Owner of this Note, he/she hereby irrevocably exercises the option to
convert this Note, or such portion of this Note in the principal amount designated above into the
number of shares of Common Stock of the Company equal to (x) the aggregate principal amount of
Notes to be converted divided by 1,000 multiplied by (y) the Conversion Rate in effect on the
Conversion Date. The Owner directs that such shares, together with a check in payment for any
fractional shares, Make-whole Premium, or amount in lieu of any Additional Shares and any Notes
representing any unconverted principal amount hereof, be delivered to and be registered in the name
of the undersigned unless a different name has been indicated below. If shares of Common Stock or
Notes are to be registered in the name of a Person other than the undersigned, (a) the undersigned
will pay all transfer taxes payable with respect thereto and (b) signature(s) must be guaranteed by
an eligible guarantor institution with membership in an approved signature guarantee program
pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934. Any amount required to be paid
by the undersigned on account of interest accompanies this Note.

Dated:                     
                    

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Signature(s) 	 
	 	 	 

 

B-1

 

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

	 	 	 	 	 
	 	 	 
	
 	 	 
	(Name) 	 	 
	 	 	 
	 
	 	 	 
	
 	 	 
	(Address) 	 	 
	 	 	 

Social Security or other Identification Number,

if any.

	 	 	 	 	 
	[Signature Guaranteed]

 	 	 

If only a portion of a Definitive Note is to be converted, please indicate:

1. Principal amount to be converted: $                    
                    

2. Principal amount and denomination of Notes representing unpurchased principal amount to be
issued:

	 	 	 
	Amount: $

	 	Denominations: $

($2,000 or any integral multiple of $1,000 in excess thereof, provided that the unconverted
portion of such principal amount is $2,000 or any integral multiple of $1,000 in excess thereof.)

 

B-2

 

Exhibit C

FORM OF FUNDAMENTAL CHANGE REPURCHASE NOTICE

	TO:	 	THE BANK OF NEW YORK MELLON as Paying Agent

The undersigned registered owner of this Note hereby irrevocably acknowledges receipt of a
notice from Ciena Corporation (the “Company”) as to the occurrence of a Fundamental Change with
respect to the Company and requests and instructs the Company to repurchase for cash, at a price
equal to 100% of the aggregate principal amount thereof plus accrued and unpaid interest, if any,
to but not including the Fundamental Change Repurchase Date to the registered holder hereof;
provided that if the Fundamental Change Repurchase Date falls after a Regular Record Date and on or
prior to the corresponding Interest Payment Date, in which case the Company shall pay the full
amount of accrued and unpaid interest payable on such Interest Payment Date to the Holder of record
at the close of business on the corresponding Regular Record Date. Capitalized terms used herein
but not defined shall have the meanings ascribed to such terms in the Indenture.

Dated:                     
                    

	 	 	 	 	 
	 	 	 
	 	

 	 
	 	

 	 
	 	Signature(s) 	 
	 

NOTICE: The above signatures of the holder(s) hereof must correspond with the name as written upon
the face of the Note in every particular without alteration or enlargement or any change whatever.

Certificate numbers of the Notes (if applicable):

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

Social Security or Other Taxpayer Identification Number:

 

C-1Exhibit 10.1

Exhibit 10.1

[Execution Copy]

STACK TECHNOLOGY TRANSFER AND LICENSE AGREEMENT (“STTA”)

dated as of October 27, 2009

between

FUELCELL ENERGY, INC.

and

POSCO POWER

Confidential treatment requested as to certain portions
of this exhibit marked with an *. Such portions have been redacted and filed separately with the SEC.

 

 

 

	 	 	 	 	 
	I. DEFINITIONS
	 	 	5	 
	 
	 	 	 	 
	II. LICENSE GRANT
	 	 	10	 
	 
	 	 	 	 
	2.1 FCE Technology License.
	 	 	10	 
	 
	 	 	 	 
	2.2 Distribution Rights
	 	 	11	 
	 
	 	 	 	 
	2.3 POSCO Technology License
	 	 	11	 
	 
	 	 	 	 
	2.4 License to POSCO Power Upon Expiration of the Term
	 	 	12	 
	 
	 	 	 	 
	2.5 License to FCE Upon Expiration of the Term
	 	 	12	 
	 
	 	 	 	 
	2.6 Use of “FCE” Trademarks
	 	 	12	 
	 
	 	 	 	 
	2.7 Transfer of Technical Data
	 	 	12	 
	 
	 	 	 	 
	2.8 Joint Committee(s)
	 	 	13	 
	 
	 	 	 	 
	2.9 Manufacturing in Korea .
	 	 	13	 
	 
	 	 	 	 
	2.10 Regular Exchange of Technical Data
	 	 	14	 
	 
	 	 	 	 
	2.11 New product development and Improvements 
	 	 	14	 
	 
	 	 	 	 
	III. OWNERSHIP OF INTELLECTUAL PROPERTY
	 	 	14	 
	 
	 	 	 	 
	3.1 Ownership of FCE Technology
	 	 	14	 
	 
	 	 	 	 
	3.2 Ownership of POSCO Technology
	 	 	14	 
	 
	 	 	 	 
	3.3 Joint Ownership
	 	 	14	 
	 
	 	 	 	 
	IV. ROYALTIES
	 	 	14	 
	 
	 	 	 	 
	4.1 Royalty Payments.
	 	 	14	 
	 
	 	 	 	 
	4.2 No Other Royalties, Payments, Etc
	 	 	15	 
	 
	 	 	 	 
	4.3 Royalty Report.
	 	 	15	 
	 
	 	 	 	 
	4.4 Royalty Determination Firm
	 	 	16	 
	 
	 	 	 	 
	V. CUSTOMER RESPONSIBILITY
	 	 	16	 
	 
	 	 	 	 
	5.1 End User Warranty
	 	 	16	 
	 
	 	 	 	 
	VI. GOVERNMENT REGULATIONS
	 	 	16	 
	 
	 	 	 	 
	6.1 POSCO Power Obligations
	 	 	16	 
	 
	 	 	 	 
	6.2 FCE Obligations
	 	 	16	 

 

1

 

	 	 	 	 	 
	6.3 DOE Approval
	 	 	16	 
	 
	 	 	 	 
	VII. REPRESENTATIONS AND WARRANTIES
	 	 	17	 
	 
	 	 	 	 
	7.1 Representations and Warranties of FCE
	 	 	17	 
	 
	 	 	 	 
	7.2 Representations and Warranties of POSCO Power
	 	 	18	 
	 
	 	 	 	 
	VIII. TERM
	 	 	19	 
	 
	 	 	 	 
	8.1 Term
	 	 	19	 
	 
	 	 	 	 
	8.2 Extension
	 	 	19	 
	 
	 	 	 	 
	IX. TERMINATION
	 	 	19	 
	 
	 	 	 	 
	9.1 Termination by Mutual Agreement
	 	 	19	 
	 
	 	 	 	 
	9.2 FCE Termination by Material Breach of POSCO Power.
	 	 	19	 
	 
	 	 	 	 
	9.3 POSCO Power Termination by Material Breach of FCE.
	 	 	20	 
	 
	 	 	 	 
	9.4 Return of FCE Technology
	 	 	21	 
	 
	 	 	 	 
	9.5 Return of POSCO Technology
	 	 	21	 
	 
	 	 	 	 
	9.6 Survival
	 	 	21	 
	 
	 	 	 	 
	X. INDEMNIFICATION
	 	 	21	 
	 
	 	 	 	 
	10.1 POSCO Power Obligations
	 	 	21	 
	 
	 	 	 	 
	10.2 FCE Obligations
	 	 	22	 
	 
	 	 	 	 
	10.3 Limitation of Damage
	 	 	23	 
	 
	 	 	 	 
	XI. CONFIDENTIAL INFORMATION
	 	 	23	 
	 
	 	 	 	 
	11.1 POSCO Power Obligations
	 	 	23	 
	 
	 	 	 	 
	11.2 POSCO Affiliate
	 	 	24	 
	 
	 	 	 	 
	11.3 FCE and POSCO Power Obligations
	 	 	24	 
	 
	 	 	 	 
	XII. NOTICES
	 	 	24	 
	 
	 	 	 	 
	XIII. ENTIRE AGREEMENT
	 	 	25	 
	 
	 	 	 	 
	XIV. APPLICABLE LAW AND ARBITRATION
	 	 	25	 
	 
	 	 	 	 
	14.1 Governing Law
	 	 	25	 
	 
	 	 	 	 
	14.2 Efforts to Resolve by Mutual Agreement
	 	 	25	 

 

2

 

	 	 	 	 	 
	14.3 ICC Arbitration
	 	 	25	 
	 
	 	 	 	 
	14.4 Waiver of Jury Trial
	 	 	26	 
	 
	 	 	 	 
	XV. MISCELLANEOUS
	 	 	26	 
	 
	 	 	 	 
	15.1 Amendment
	 	 	26	 
	 
	 	 	 	 
	15.2 Severability
	 	 	26	 
	 
	 	 	 	 
	15.3 Government Information
	 	 	26	 
	 
	 	 	 	 
	15.4 Independent Contractors
	 	 	26	 
	 
	 	 	 	 
	15.5 Assignment
	 	 	27	 
	 
	 	 	 	 
	15.6 No Third Party Beneficiary
	 	 	27	 
	 
	 	 	 	 
	15.7 Headings
	 	 	27	 
	 
	 	 	 	 
	15.8 Right to Injunction; Specific Performance
	 	 	27	 
	 
	 	 	 	 
	15.9 Force Majeure
	 	 	27	 
	 
	 	 	 	 
	XVI. SALES TARGETS AND EXCLUSIVITY
	 	 	28	 
	 
	 	 	 	 
	16.1 Sales Targets
	 	 	28	 
	 
	 	 	 	 

	 	 	 
	Exhibits:
	 	 
	 
	Exhibit A:

	 	Form of STTP
	Exhibit B:

	 	Form of DOE Approval
	Exhibit C:

	 	List of FCE Patents
	Exhibit D:

	 	Sales Targets
	 
	 	 
	Schedules:
	 	 
	 
	Schedule A:

	 	POSCO Affiliates
	Schedule B:

	 	Non-Exclusive Territory
	Schedule C:

	 	FCE Previously Granted Distribution Rights

 

3

 

THIS STACK TECHNOLOGY TRANSFER AND LICENSE AGREEMENT (this “Agreement”) is made and entered
into this 27th day of October, 2009, by and between FUELCELL ENERGY, INC., a Delaware corporation
having a place of business at 3 Great Pasture Rd., Danbury, CT 06813, U.S.A. (“FCE”) and POSCO
POWER, a Korean corporation having a place of business at Posteel Tower 20th floor, 735-3,
Yeoksam-dong, Gangnam-gu, Seoul 135-080, Korea (“POSCO Power”).

RECITALS:

A. POSCO Power and FCE are parties to a series of agreements identified as follows
(collectively, the “Transaction Agreements”):

(i) the Technology Transfer, Distribution and Licensing Agreement for the transfer of Balance
of Plant technology (the “Technology Transfer Agreement” or “TTA”) and the Alliance Agreement (the
“Alliance Agreement” or “AA”), both executed as of February 7, 2007;

(ii) the Technology Transfer Program (“TTP”) executed as of July 11, 2007;

(iii) the Contract for the Supply of DFC Plants and DFC Modules from FCE to POSCO Power (
“2008 Purchase Contract”) executed as of April 22, 2008;

(iv) the Contract for the Supply of DFC Modules and DFC Components from FCE to POSCO Power (
“2009 Purchase Contract”) executed as of June 9, 2009; and

(v) the Securities Purchase Agreement by and between FCE and POSCO Power (the “2009 Securities
Purchase Agreement”) executed as of June 9, 2009.

B. FCE has developed technology for the assembly of Fuel Cell Stack Modules from Repeating
Components, Module Components and Non-Repeating Components (“Module Assembly”) for use in high
temperature Molten Carbonate Fuel Cell (“MCFC”) power plants known as the “Direct FuelCell®”
(DFC®), and is developing new DFC based products currently designated by FCE as “DFC/T®”,
“DFC-ERG®” and “DFC/H2®”.

C. FCE wishes to grant a license of the FCE Technology (defined below) to POSCO Power and/or
POSCO Affiliates and transfer the FCE Technology and provide technical assistance and support to
POSCO Power. POSCO Power wishes to accept such a license and receive the FCE Technology, technical
assistance and support, all in accordance with the terms of this Agreement and the other
Transaction Agreements (defined below), as applicable.

D. POSCO Power, together with the POSCO Affiliates (defined below), wishes to engage in Fuel
Cell Stack Module Assembly, Conditioning, Diagnosis and Repairing of such Fuel Cell Stack Module in
Korea under license from FCE, and to continue in the
commercialization of the DFC technologies in the Korean Market (defined below) and in the
Non-Exclusive Territory (defined below).

 

4

 

E. POSCO Power wishes to grant a license of the POSCO Technology (defined below) to FCE for
the purpose of allowing FCE to further improve and modify the Fuel Cell Stack Module technologies
developed by FCE, in accordance with the terms of this Agreement and the other Transaction
Agreements, as applicable.

F. The Parties acknowledge and agree that Fuel Cell Stack Module Manufacturing in Korea
(defined below) under the license granted herein by FCE may achieve, among other things, cost
reduction, product improvement, lead time improvement and service quality improvement. It is thus
intended that POSCO Power will engage, directly or indirectly through one or more POSCO Affiliates
or independent third parties, in Fuel Cell Stack Module Manufacturing in Korea on terms and
conditions set forth herein.

NOW, THEREFORE, in consideration of the foregoing and the terms and conditions set forth below
and intending to be legally bound, the parties agree as follows:

I. DEFINITIONS

As used in this Agreement, the following terms shall have the following respective meanings
which are intended to define the scope of this Agreement:

“Additional Term” shall have the meaning set forth in Section 8.2.

“Applicable Laws” shall mean all applicable laws, treaties, ordinances, judgments,
decrees, injunctions, writs, orders, rules, regulations, interpretations and permits of any
Governmental Authority.

“Balance of Plant” or “BOP” shall mean all subsystems for operation and generation of
electrical power by DFC’s MCFCs in one or more stacks and including, but not limited to, fuel
pre-treatment boilers, water recovery, fuel exhaust burner, inverter, control system, utility
interface and start-up and stand-by equipment. For the avoidance of doubt, BOP shall mean all
components of the DFC Power Plant other than the Fuel Cell Stack Module.

“DFC” shall mean FCE’s proprietary MCFC.

“DFC Components” means a quantity of Repeating Components (RC), Non-Repeating
Components (NRC) and Module Components from which a complete Fuel Cell Stack Module may be
assembled.

“DFC Manuals” means the documents prepared and provided by FCE which contain, but are
not necessarily limited to, instructions for installation, operation, initial start-up, field
procedures, instrumentation and controls, diagnosis and maintenance of the DFC Power Plants.

 

5

 

“DFC Module Kit” shall mean a set of components comprised of Module Components, NRC,
and RC, which are manufactured wholly by FCE, in sufficient quantity for the subsequent assembly
and conditioning by POSCO Power of a complete Fuel Cell Stack Module.

“DFC Power Plant” shall mean the MCFC power plant comprising the Fuel Cell Stack
Module and the BOP, and shall specifically exclude items of equipment such as foundations,
structures, enclosures, transmission/distribution lines and interconnections, fuel lines, fuel
preparation and clean-up equipment water drainage/removal, computer hardware and software and any
other items related to the foregoing.

“DOE Approval” shall mean the necessary consent or approval from the U.S. Department
of Energy, in form substantially similar to the form of DOE Approval set forth in Exhibit B
attached hereto.

“Effective Date” shall mean the date upon which all the obligations of FCE set forth
in Section 6.3 have been satisfied or waived.

“Fuel Cell Stack” shall be comprised of RC and NRC as defined herein below.

“Fuel Cell Stack Module” shall mean the Module Components and the Fuel Cell Stack.

“Fuel Cell Stack Module Manufacturing in Korea” shall mean the engagement by POSCO
Power, directly or indirectly through one or more POSCO Affiliates or independent third parties, to
manufacture certain components of Module Component and NRC (as defined below) under the condition
as set forth in Section 2.9.

“FCE Products” shall mean DFC Power Plants currently designated DFC300MA, DFC1500MA,
DFC1500B and DFC3000 with introductory ratings of 300 kW, 1.2 MW, 1.4 MW and 2.8 MW, respectively,
and modifications and improvements thereof, regardless of how designated by FCE, which are made
available, or in the future may be made available, for commercial use or sale by FCE during the
Term.

“FCE Know-How” shall mean all technical information, know-how, inventions (whether
patented or not), trade secrets, and other technical, engineering and design information and data,
as available and/or in then current use by FCE, whether included as part of the DFC Manual or not,
including all information provided by third parties to FCE, related to the Module Assembly Process,
Module Conditioning Process, and the Module Repair Process; the Module Assembly Facility Data,
Module Conditioning Facility Data, and the Module Repair Facility Data; the Module Components; and
the NRC. It is understood that FCE Know-How shall not include: (i) information and data relating to
machines or processes used in the manufacture of RC materials, parts, and components; (ii)
information and data relating to design, manufacture and materials used for the RC; and (iii)
information and data which is subject to restriction on disclosure by a third party, provided,
however, that FCE shall exercise commercially reasonable good faith efforts to obtain the consent
needed to make such information available to POSCO Power. It is

 

6

 

further understood that FCE Know-How shall not include such information which relates to “New
DFC Based Products”.

“FCE Patents” shall mean the letters patents, and any applications for letters patent
which have a “Convention Date” under the International Convention for the Protection of Industrial
Property prior to the earlier of the expiration or termination date of this Agreement and which are
owned or acquired by FCE or in which FCE has or acquires a licensable interest (including without
limitation any U.S. or non-U.S. patents and patent applications that are counterparts thereof,
and/or any divisions, continuations, continuations-in-part or reissues, reexaminations, renewals,
substitutions, extensions, supplementary protection certificates in respect thereof) and which
relate to the technology being licensed hereunder to POSCO Power as listed in Exhibit C attached
hereto.

“FCE Technology” shall mean FCE Patents and FCE Know-How.

“Force Majeure” shall mean unforeseen circumstances beyond the reasonable control and
without the fault or negligence of either Party and which such Party is unable to prevent or
provide against by the exercise of reasonable diligence including, but not limited to, acts of God,
any acts or omissions of any civil or military authority, earthquakes, strikes or other labor
disturbances, wars (declared or undeclared), terrorist and similar criminal acts, epidemics, civil
unrest and riots.

“Governmental Authority” shall mean any supranational, national, federal, state,
municipal or local government or quasi-governmental or regulatory authority (including a national
securities exchange or other self-regulatory body), agency, court, commission or other similar
entity, domestic or foreign.

“Governmental Order” shall mean any order, writ, judgment, injunction, decree,
stipulation, determination or award entered by or with any Governmental Authority.

“Initial Term” shall have the meaning set forth in Section 8.1.

“Korean Market” shall mean the Republic of Korea.

“Korean Company” shall include any corporation, company or entity established under
the laws of the Republic of Korea, including any Subsidiary thereof, wherever located or
established, other than POSCO Power and POSCO Affiliates.

“MCFC” shall mean molten carbonate fuel cell.

“Module Assembly Facility Data” shall mean engineering and design information and
data, as available and/or in then current use by FCE, including but not limited to the
construction, operation and maintenance of facilities, equipment, and tooling to perform Module
Assembly Processes.

 “Module Assembly Process” shall mean engineering and design information and data,
inventions, trade secrets, know-how, work instructions, and related information as

 

7

 

available and/or in then current use by FCE, including but not limited to the assembly of Fuel
Cell Stack Modules from RC, NRC, and Module Components as well as information and know-how related
to quality assurance and quality control (QA/QC) for the assembly process.

“Module Components” shall mean parts and components of the Fuel Cell Stack Module
other than Fuel Cell Stack, necessary to assemble a Fuel Cell Stack Module, including but not
limited to the catalytic oxidizer, mixer/eductor, stack enclosure vessel, enclosure insulation,
flex hoses and instrumentation tubing.

“Module Conditioning Facility Data” shall mean engineering and design information and
data, as available and/or in then current use by FCE, including but not limited to the
construction, operation and maintenance of facilities, equipment, and tooling to perform Module
Conditioning Processes.

“Module Conditioning Process” shall mean the first heat treatment process following
the complete assembly of Fuel Cell Stack Module, through which the initial product tests and
quality checks are performed.

“Module Repair Facility Data” shall mean engineering and design information and data,
as available and/or in then current use by FCE, including but not limited to the construction,
operation and maintenance of facilities, equipment, and tooling to perform Module Repair Processes.

“Module Repair Process” shall mean all processes including tear-down, diagnosis,
testing, replacing, repairing and conditioning of a malfunctioning Fuel Cell Stack Module,
excluding those portions of the diagnosis and repair process which relate to RC, to place such Fuel
Cell Stack Module in a re-operable condition.

“New DFC-Based Products” shall mean, as currently designated by FCE, the DFC/T®, the
DFC/H2®, the DFC-ERG®, and any modifications and derivation in whole or in part of thereof,
regardless of designation.

“New DFC-Based Technology” shall mean all technical information, know-how, inventions
(whether patented or not) or trade secrets, which relate to the New DFC-Based Products.

“New Joint Products” shall mean products which are unique and distinct from the New
DFC Based Products and New DFC-Based Technology, and for which FCE has not, as of the Effective
Date of the STTA, commenced initial concept development, analysis or product development
activities; for example, fuel cell technology for on-site application, industrial back-up power
application, and marine application.

“Non-Exclusive Territory” shall mean the jurisdictions set forth in Schedule B hereto,
it being understood and agreed that additional jurisdictions may be added, as mutually agreed by
the Parties from time to time.

 

8

 

“Non-Repeating Components” or “NRC” means parts and components necessary for the
assembly of the Fuel Cell Stack other than RC, including but not limited to supporting hardware,
manifolds, instrumentation, assembly and compression hardware.

“Party” shall mean FCE or POSCO Power, or when used in the plural, FCE and POSCO
Power.

“Person” shall mean any natural person, firm, partnership, association, corporation,
company, joint venture, trust, business trust, Governmental Authority or other entity.

“POSCO Affiliate” shall mean each of those entities controlled by, or under common
control with, POSCO Power, which may receive all or part of the FCE Technology in connection with
this Agreement, and which are listed in Schedule A, it being understood and agreed that additional
entities may be added as mutually agreed by the Parties.

“POSCO Modules” shall mean Fuel Cell Stack Modules manufactured by POSCO under license
from FCE.

“POSCO Module Net Sales” shall mean the revenues generated from the sales by POSCO
Power or POSCO Affiliate of the POSCO Modules; less the POSCO Module Net Sales Adjustments, all
determined in accordance with Section 4.1(c) below.

“POSCO Module Net Sales Adjustments” shall include the cost of DFC Components, DFC
Module Kit, or any components or parts of the POSCO Modules, purchased by POSCO Power and/or any
POSCO Affiliate from FCE and POSCO Products and POSCO Parts that (a) are manufactured using the
proprietary technology, engineering and design, know-how and inventions of POSCO Power and/or any
POSCO Affiliate, and (b) do not use or contain any FCE Technology and the following items incurred
in normal, bona fide, commercial transactions to the extent to which they are actually paid and
expressly included in the gross invoice price: (i) sales returned; (ii) sales discounts; (iii)
duties and taxes on sales; (iv) transportation insurance premiums; (v) packing expenses on sales;
(vi) transport expenses on sales.

Further, sales and purchases by and between POSCO Power and POSCO Affiliate to effect the
sales of POSCO Modules, to customers shall be excluded only to the extent such POSCO Modules are
not put into use or operation by such POSCO Affiliate. If such POSCO Modules are subsequently
resold to third parties, such subsequent sale to the third party shall be included.

In addition, the Parties recognize and agree that there should not be any duplicate royalties
counting for any single transaction by calculating royalties under the previous TTA and this STTA,
thus, any royalty calculation resulting from the Net Sales of POSCO Module under this STTA shall be
taken into account with the calculation of the royalties resulting from the Net Sales of DFC Power
Plants, POSCO Products and/or POSCO Parts under the TTA.

 

9

 

“POSCO Parts” shall mean any parts or components of POSCO Products.

“POSCO Products” shall mean any products, regardless of designation, which are the
same as, or a modification or derivation in whole or in part of FCE Products.

“POSCO Technology” shall mean all inventions, know-how, trade secrets, data or
information arising or developed independently, during the Term, by POSCO Power and POSCO
Affiliates and (i) by any employee of POSCO Power or POSCO Affiliate or (ii) by POSCO Power or
POSCO Affiliate vendors, subcontractors, consultants or suppliers (but only to the extent that
POSCO Power or POSCO Affiliate has obtained rights thereto), derived from or based on the FCE
Technology, including, without limitation, technical information, know-how, inventions (whether
patented or not), trade secrets, and other technical, engineering and design information and data,
detailed drawings, bill of material, system analytical models, system operating software,
manufacturing plant data, vendor qualification and selection procedures, and quality assurance
procedures.

“Repeating Components” or “RC” shall consist of discrete fuel cell packages composed
of active fuel cell components, which include but are not limited to anodes, cathodes, current
collector plates, and matrices.

“Royalty Determination Firm” shall have the meaning set forth in Section 4.4.

“Stack Technology Transfer and License Agreement” or “STTA” shall mean this
Agreement.

“Stack Technology Transfer Protocol” or “STTP” shall mean that certain document
containing the detailed terms and schedules relating to the transfer by FCE of FCE Technology,
including the scope of assistance and support provided, to POSCO Power and POSCO Affiliates, as
applicable, it being understood and agreed that, the STTP shall become part of this Agreement, as
Exhibit A hereto.

“Subsidiary” shall mean, with respect to any Person (for the purposes of this
definition, the “parent”), any other Person (other than a natural person), whether incorporated or
unincorporated, of which at least a majority of the securities or ownership interests having by
their terms ordinary voting power to elect a majority of the board of directors or other persons
performing similar functions is directly or indirectly owned by the parent or by one or more of its
respective Subsidiaries or by the parent and any one or more of its respective Subsidiaries.

“Term” shall have the meaning set forth in Section 8.1.

II. LICENSE GRANT

2.1 FCE Technology License.

(a) During the Term, and subject to the terms of this Agreement, FCE hereby grants to POSCO
Power:

 

10

 

(i) an exclusive right and license to use the FCE Technology to construct, assemble,
manufacture, use, sell, import, maintain, service and/or repair POSCO Modules in the Korean Market;

(ii) a right and license to use the FCE Technology to sell, export, maintain, service and/or
repair POSCO Modules in the Non-Exclusive Territory; and

(iii) an exclusive right and license to have manufactured and assembled in the Korean Market,
POSCO Modules by POSCO Affiliates in Korea, subject to the execution by POSCO Affiliates of
confidentiality agreements substantially similar to the terms and conditions set forth in
Article XI of this Agreement.

(b) For the avoidance of doubt, the foregoing license consists of a right and license to use
the FCE Know-How, and a right and license under the FCE Patents which cover the FCE Know-How, which
are now owned or which may hereafter be acquired by, or granted to FCE and under which FCE has or
may acquire the right to grant such a right and license.

(c) At the request of POSCO Power, and upon consent by FCE, which consent shall not be
unreasonably withheld, FCE shall designate any POSCO Affiliate indicated by POSCO Power as an
additional licensee under this Agreement.

2.2 Distribution Rights. FCE hereby grants to POSCO Power or any POSCO Affiliate, as
applicable, a non-exclusive right to distribute, sell, maintain, export/import, service and/or
repair Fuel Cell Stack Modules and FCE Products in the Korean Market and in the Non-Exclusive
Territory during the Term, subject to certain distribution rights previously granted by FCE to
other third parties; provided, however, that during the Term, FCE shall (i) not grant any new
distribution rights for FCE Products for the Korean Market; (ii) in any way extend the term of any
distribution rights granted to any third parties prior to the date hereof with respect to the
Korean Market upon expiration or termination thereof; or (iii) not sell the FCE Products in the
Korean Market or to any third party (except as permitted in the Alliance Agreement) which, in its
reasonable judgment after due inquiry, may have an intention to re-sell the same in the Korean
Market. A list of all distribution rights granted by FCE prior to the date hereof is set forth in
Schedule C attached hereto.

2.3 POSCO Technology License. POSCO Power hereby grants to FCE a non-exclusive,
non-assignable, non-sublicensable and paid-up license to use POSCO Technology during the Term and
to manufacture, have manufactured and sell FCE Products that incorporate POSCO Technology by giving
prior notice to POSCO Power. Notwithstanding the foregoing, the Parties agree that FCE may
sub-license the POSCO Technology to a third party for the sole purpose of further developing and
improving the FCE Technology, with prior written consent of POSCO Power, provided that any
such development or improvement shall be transferred to POSCO Power and that the third party shall
not use or commercialize the POSCO Technology, without the prior written consent of POSCO Power,
which consent shall be given at POSCO Power’s sole discretion.

 

11

 

2.4 License to POSCO Power Upon Expiration of the Term. Upon expiration of the Term,
FCE hereby agrees to continue and extend the grant and license, on a non-exclusive basis, to POSCO
Power of all rights set forth under Section 2.1 of this Agreement, subject to the payment by POSCO
Power to FCE of royalties to be mutually determined by the Parties upon such expiration through
commercially reasonable good faith efforts; provided, that in the absence of an agreed
royalty determination within the sixty (60) day period immediately following the initial request by
either Party to determine the royalties, the Parties will submit to binding determination in
accordance with Section 4.4. Such determination shall take into account any compensation owed by
FCE to third parties.

2.5 License to FCE Upon Expiration of the Term. Upon expiration of the Term, POSCO
Power hereby agrees to continue granting to FCE on a non-exclusive basis all rights set forth under
Section 2.3 of this Agreement, subject to the payment by FCE to POSCO Power of royalties to be
mutually determined by the Parties upon such expiration through commercially reasonable good faith
efforts, taking into consideration the contribution of each Party to the POSCO Technology;
provided, that in the absence of an agreed royalty determination within the sixty (60) day
period immediately following the initial request by either Party to determine the royalties, the
Parties will submit to binding determination in accordance with Section 4.4.

2.6 Use of “FCE” Trademarks. During the Term, FCE grants POSCO Power the right to
use “FCE” marks, in connection with the labeling, advertising or sale of POSCO Modules that POSCO
Modules made by it are “manufactured under license of FUELCELL ENERGY, INC., U.S.A.”, or any other
similar statement, to the extent that such is, in fact, the case. In addition, FCE hereby grants
to POSCO Power a non-exclusive fully paid-up license and right to use, consistent with the terms of
this Agreement, any and all trademarks and trade names owned by FCE and subject to appropriate
provisions concerning protection of trademarks and trade names, including quality control.

2.7 Transfer of Technical Data. FCE hereby agrees to provide POSCO Power, upon
completion of payment obligations described in Section 4.1(a) hereunder, technical data and other
information existing in documented form as of the Effective Date, relating to the FCE Know-How in
accordance with the terms of the STTP. FCE hereby agrees that it will supply or cause to be
supplied to POSCO Power and POSCO Affiliates, as applicable, free of any charges, except as
indicated in the STTP, full up-to-date information, to the extent available in documented form of
FCE Technology in a form (e.g., drawings, standard operating procedures, blueprints, written
memoranda, training of employees or personal consultation) or non-documented form via oral or other
visual forms in a commercially reasonable manner and form that will satisfactorily and
expeditiously accomplish the transfer of FCE Know-How to POSCO Power. FCE will supply all such
information in a reasonably usable form and in the English language. In the event that POSCO Power
requests, in writing, that FCE supply such information in a technical form that differs from the
technical form in which FCE has previously supplied or offered to supply it, then POSCO Power
agrees to reimburse FCE the actual costs and expenses incurred by FCE; provided,
however, that POSCO Power will not be required to

 

12

 

pay the costs of obtaining any such information if it is already available to FCE in the form
requested by POSCO Power. At its sole discretion, POSCO Power may transfer to POSCO Affiliates the
technical data described in this Section, for the purpose, and subject to limitations, set forth in
Section 2.1(a)(iii) above.

2.8 Joint Committee(s). The Parties shall form one or more joint committee(s)
consisting of at least two members selected from time to time by each of FCE and POSCO Power, for
the purposes of: (i) developing a plan for Fuel Cell Stack Module Manufacturing in Korea, as
indicated in Section 2.9 below (hereafter the “Localization Plan”), (ii) developing a joint
development plan and strategy with respect to the New Joint Products, New DFC-Based Technology and
New DFC-Based Products (hereinafter the “Joint Development Plan”), and (iii) developing a plan for
executing the technology transfer in accordance to the STTP (hereinafter the “STTP Transfer Plan”),
and (iv) such other matters as the Parties mutually agree.

(a) The Localization Plan shall include, but not be limited to: (i) plan for qualification of
local vendors following FCE standard vendor qualification procedures in effect from time to time;
(ii) fabrication of first article prototype POSCO Module(s); and (iii) a detailed plan to
demonstrate the quality of components and manufacturing processes incorporated in the Localization
Plan.

(b) The Joint Development Plan shall include, but not limited to: (i) plan for Parties to
jointly develop and commercialize New Joint Products, New DFC-Based Technologies and New DFC-Based
Products in Korea and other countries.

(c) The STTP Transfer Plan shall include, but not limited to the plans to: (i) draft and
finalize the initial STTP draft to be completed by the execution date of this Agreement, (ii)
monitor the transfer progress in view of the STTP as jointly deemed necessary, (iii) modify or
update the STTP, and (iv) assist and function as the communication channel between the Parties.

2.9 Manufacturing in Korea. POSCO Power may engage one or more POSCO Affiliates and
independent third parties to perform Fuel Cell Stack Module Manufacturing in Korea upon completion
of the transfer of the Module Component and NRC technology, subject to completion of the activities
described in Sections 2.9(a) and 2.9(b) hereunder.

(a) Within 60 days of the earlier of May 31, 2011 or the completion of the Fuel Cell Stack
Module prototype manufacturing as defined in the STTP, and prior to commencing local manufacturing
of NRC and Module Components for sale to end use customers, the Parties shall work in good faith
and in a commercially reasonable manner and agree on a localization schedule and the level of
adjustment to the royalty set forth in Section 4.1(b) herein (or other form of compensation, as
mutually agreed by the Parties), which shall be based on, among other things, market conditions,
cost of local manufacturing, and the availability of qualified vendors.

 

13

 

(b) The Parties acknowledge and agree that the quality of the components and manufacturing
processes incorporated in Fuel Cell Stack Module Manufacturing in Korea is critical to the success
of the continued commercialization of the DFC technologies in the Korean Market. Thus, the Parties
agree that any Fuel Cell Stack Module Manufacturing in Korea by POSCO Power or any independent
third party designated by POSCO Power shall be subject to the prior consent of FCE as to the
satisfaction of FCE’s standard vendor qualification policies and procedures in effect at the time.

2.10 Regular Exchange of Technical Data. During the Term, the Parties shall exchange
on a regular basis certain reasonably available technical data in connection with the performance
of this Agreement, in accordance with the terms of the STTP.

2.11 New product development and Improvements. FCE acknowledges that POSCO Power will
be making efforts to develop new products and improve the FCE Technology and agrees to provide
POSCO Power with technical and related information reasonably necessary and to the extent
reasonably available to FCE for such new product development and improvement efforts. POSCO Power
acknowledges and agrees that any such new product development and improvements shall be subject to
quality review and consent by FCE (which consent shall not be unreasonably withheld) before they
are incorporated into Fuel Cell Stack Modules.

III. OWNERSHIP OF INTELLECTUAL PROPERTY

3.1 Ownership of FCE Technology. POSCO Power acknowledges that all FCE Technology in
and relating to the FCE Products, whether developed by or for FCE prior to or after the Effective
Date of this Agreement, is and shall remain the property of FCE or its third party licensors.

3.2 Ownership of POSCO Technology. All inventions, know-how, trade secrets, data or
information made, invented, conceived, created or otherwise developed by POSCO Power and POSCO
Affiliates, as applicable, and their employees, derived or resulting from the FCE Technology shall
be considered POSCO Technology and shall be the sole property of POSCO Power or POSCO Affiliates,
as applicable. For the avoidance of doubt, it is understood and agreed that nothing contained
herein shall convey ownership to POSCO of any FCE Technology from which such POSCO Technology is
derived.

3.3 Joint Ownership. All inventions, know-how, trade secrets, data or information
which results from joint development by the Parties hereto shall be jointly owned by the Parties.
The Parties hereby agree to cooperate in good faith in the filing of any and all patent
applications in all jurisdictions.

IV. ROYALTIES

4.1 Royalty Payments.

In consideration of the license of FCE Technology granted herein, POSCO Power agrees to pay to
FCE the following royalty payments:

 

14

 

(a) An up-front royalty payment in the amount of USD $10 million (the “Upfront Payment”) shall
be paid in full on the Effective Date of this Agreement. For the avoidance of doubt, POSCO Power
shall be responsible for payment of withholding taxes or other payments.

(b) A royalty of 4.1% of the POSCO Module Net Sales, which is subject to adjustment as set
forth in Section 2.9(a), during the Initial Term. The royalty payment shall be paid by POSCO Power
in cash. The royalty payment shall be paid semi-annually and within forty-five (45) days of June
30 and December 31 of each year.

(c) The Parties acknowledge that although the Royalty set forth above in Section 4.1(b)(i)
shall be applicable, it may be difficult to ascertain the royalties in certain transactions. Such
transactions may include, but are not limited to, transactions in which the POSCO Modules are
leased, loaned, bartered or exchanged for goods or services, transferred to a third party or any
entity affiliated or closely associated with POSCO Power at a price other than market price or on
terms other than in an arm’s length, or otherwise put into use by POSCO Power or POSCO Affiliates.
POSCO Power agrees to notify FCE within five (5) days after entering into such arrangements, and
the Parties shall subsequently use commercially reasonable good faith efforts to establish
guidelines for determining the royalties for such transactions within sixty (60) days from the date
such notice is received, taking into consideration the principles of the Korean GAAP and U.S. GAAP
and incorporating the principles of best accounting practices. If the Parties failed to reach
agreement, the Parties agree to abide by the procedures set forth in Section 4.4.

4.2 No Other Royalties, Payments, Etc. The Parties acknowledge and agree that, other
than the Upfront Payment and the Royalty, and certain reasonable travel, per diem, and related
expenses to be reimbursed pursuant to the STTP, POSCO Power or any POSCO Affiliates shall not be
liable for any fees, royalties, expenses or payments in connection with the license rights granted
herein or the use by POSCO Power or POSCO Affiliates of the FCE Technology under this Agreement.

4.3 Royalty Report.

(a) Regular Reports. When rendering payment of the foregoing royalties, POSCO Power
shall provide FCE with a written report showing the calculation of the royalty, the number of
products to which the royalty is applicable. At its expense, FCE may, by its designated
independent public accountants, audit the royalty amounts reported by POSCO Power no more than once
a year. To the extent any sales are made by any POSCO Affiliates, POSCO Power agrees to furnish to
FCE copies of relevant books and records of the POSCO Affiliates for the sole purpose of such audit
by FCE.

(b) Final Report. POSCO Power shall deliver a written report to FCE within sixty (60)
days of the termination or expiration of this Agreement, containing information relevant to the
calculation of the royalties due under this Agreement; provided that such report shall
include the Net Sales of POSCO Modules that are sold and on order by POSCO Power on or prior to
the date of termination or expiration and not previously

 

15

 

reported to FCE, and such other information as may be necessary to determine the royalties due
hereunder.

4.4 Royalty Determination Firm. The Parties agree that in case of any dispute with
respect to the determination of royalty pursuant to Sections 2.3, 2.4, 4.1(c), 9.2 and 9.3, any
such determination shall be determined by an internationally recognized independent accounting firm
jointly selected and paid for by the Parties (“Royalty Determination Firm”). If the Parties
dispute the royalty amount determined by the Royalty Determination Firm, then the disputing Party
has the right at its own expense to retain another internationally recognized independent
accounting firm; and in such event, the determination of the royalty shall be the average of the
two determinations, provided that, that the average of the two determinations shall not exceed by
more than 10% of the difference between the royalty amount determined by the Royalty Determination
Firm and the royalty amount determined by the independent determination firm.

V. CUSTOMER RESPONSIBILITY

5.1 End User Warranty. For POSCO Modules assembled by POSCO Power and/or POSCO
Affiliates from DFC Components supplied by FCE, POSCO Power shall be responsible to the end user
for warranty, performance guarantees and service obligations related to the POSCO Modules. FCE
shall have no obligations under the service agreements which POSCO Power may execute with end users
for POSCO Modules, beyond the performance guarantees and warranties contained in the purchase
contracts for such products executed between POSCO Power and FCE.

VI. GOVERNMENT REGULATIONS

6.1 POSCO Power Obligations. POSCO Power hereby agrees to comply with the U.S.
Department of Commerce Export Administration Regulations concerning exportation and re-exportation
of technical data (including computer software), direct products thereof or any components
purchased hereunder to any countries or territories. POSCO Power hereby gives FCE the assurance
required by the U.S. Department of Commerce Export Administration Regulations with respect to the
U.S. origin technical information furnished by FCE hereunder and the direct product of such
technical information.

6.2 FCE Obligations. FCE hereby agrees to comply with the U.S. Department of
Commerce Export Administration Regulations concerning exportation and re-exportation of technical
data (including computer software), direct products thereof or any components purchased hereunder
to any countries or territories. FCE hereby gives POSCO Power the assurance required by the U.S.
Department of Commerce Export Administration Regulations with respect to the U.S. origin technical
information furnished by FCE hereunder and the direct product of such technical information.

6.3 DOE Approval. FCE shall use its best efforts to obtain all necessary consent or
approval from the U.S. Department of Energy, in form substantially similar to the form of DOE
Approval set forth in Exhibit B attached hereto.

 

16

 

VII. REPRESENTATIONS AND WARRANTIES

7.1 Representations and Warranties of FCE. FCE represents and warrants to POSCO
Power that as of the date hereof and as of the Effective Date:

(a) It has all requisite right, power and authority, to execute and deliver this Agreement,
to perform its obligations hereunder and to consummate the transactions contemplated hereby;

(b) The execution, delivery and performance by FCE of this Agreement, and the consummation by
FCE of the transactions contemplated hereby, have been duly and validly authorized by all necessary
corporate action on the part of FCE and no other corporate actions or proceedings on the part of
FCE are necessary to authorize this Agreement and the transactions contemplated hereby. Assuming
due authorization, execution and delivery of this Agreement by POSCO Power hereto, this Agreement
constitutes a legal, valid and binding obligation of FCE enforceable against it in accordance with
its terms;

(c) The execution, delivery and performance by FCE of this Agreement, and the consummation by
FCE of the transactions contemplated hereby do not (i) violate any Applicable Law; (ii) violate or
conflict with any contract or agreement to which FCE is a party; (iii) violate any Governmental
Order; (iv) require the approval, consent or permission of any Governmental Authority having
authority over FCE except for the DOE Approval; or (v) violate FCE’s organizational documents;

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

(e) POSCO Power’s contemplated use of the FCE Technology under this Agreement does not
infringe and is not being infringed upon by any valid rights of any third party, including but not
limited to patent rights, copyrights, trademarks or other intellectual property rights owned or
controlled by third parties in any country;

(f) The FCE Technology furnished to POSCO Power and POSCO Affiliates pursuant to this
Agreement will correspond to the FCE Technology used by FCE in the manufacture of FCE Products. If
any FCE Technology provided hereunder does not meet this requirement and POSCO Power notifies FCE,
FCE shall correct the discrepancy at its own expense, by furnishing corrected FCE Technology; and

 

17

 

(g) FCE Power Plants using FCE Technology are designed with commercially reasonable safety
precautions and FCE participates in on-going safety certification programs for its plants, such as
CSA.

(h) FCE recognizes and acknowledges that maintaining the scope of protection on the FCE
Technology in the Territory is critical to the success of the continued commercialization of POSCO
Modules in Korea. Thus, FCE represents and warrants that it has been and it shall continue to take
commercially reasonable defensive and offensive measures to protect FCE Technology against
encroachment by any third parties.

7.2 Representations and Warranties of POSCO Power. POSCO Power represents and
warrants to FCE that as of the date hereof and as of the Effective Date:

(a) It has all requisite right, power and authority to execute and deliver this Agreement, to
perform its obligations hereunder and to consummate the transactions contemplated hereby;

(b) The execution, delivery and performance by POSCO Power of this Agreement, and the
consummation by POSCO Power of the transactions contemplated hereby, have been duly and validly
authorized by all necessary corporate action on the part of POSCO Power and no other corporate
actions or proceedings on the part of POSCO Power are necessary to authorize this Agreement, and
the transactions contemplated hereby. Assuming due authorization, execution and delivery of this
Agreement by FCE hereto and thereto, this Agreement constitutes a legal, valid and binding
obligation of POSCO Power enforceable against it in accordance with its terms;

(c) The execution, delivery and performance by POSCO Power of this Agreement, and the
consummation by POSCO Power of the transactions contemplated hereby, do not: (i) violate any
Applicable Law; (ii) violate or conflict with any Contract to which POSCO Power is a party; (iii)
violate any Governmental Order; (iv) require the approval, consent or permission of any
Governmental Authority having authority over POSCO Power except for the DOE Approval; or (v)
violate POSCO Power’s organizational documents; and

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

(e) All work to be performed by POSCO Power in its manufacture, assembly and test activities
hereunder shall be performed in accordance with drawings, manufacturing

 

18

 

practices, instructions and quality plans as furnished by FCE or as mutually agreed upon by
the parties.

VIII. TERM

8.1 Term. The initial term of this Agreement (the “Initial Term”) shall
commence on the Effective Date and shall continue, unless earlier terminated in accordance with the
provisions set forth herein or in any Transaction Agreement, for a period of ten (10) years from
the Effective Date.

8.2 Extension. The Initial Term may be extended for additional terms (each,
“Additional Term”, and, together with the Initial Term, the “Term”), each for a
period of five (5) years, by mutual agreement on terms mutually agreed upon by the Parties. This
Agreement shall be extended only if the other Transaction Agreements are extended for the same
period.

IX. TERMINATION

9.1 Termination by Mutual Agreement. This Agreement may be terminated, without any
further obligation or liability by mutual written agreement of the Parties.

9.2 FCE Termination by Material Breach of POSCO Power.

(a) Notwithstanding anything to the contrary contained herein or in any other Transaction
Agreements, in the event POSCO Power materially breaches any representation or warranty or
materially fails to perform any obligation or undertaking to be performed by it under this
Agreement or any other Agreement between the Parties and such material breach or failure is not
cured within sixty (60) days after notice from FCE specifying the nature of the breach, then, FCE
shall have the right to terminate this Agreement after complying with the procedures set forth in
Article XIV below.

(b) FCE Remedy. In the event that FCE terminates this Agreement pursuant to Section
9.2(a):

(i) FCE may retain all POSCO Technology, including all copies and summaries thereof,
furnished by POSCO Power prior to such termination;

(ii) FCE shall have a non-exclusive perpetual license and right to use the POSCO Technology
to manufacture and sell the FCE Products, only to the extent that FCE Products incorporate POSCO
Technology, under all patents of all countries under which POSCO Power or POSCO Affiliates, as
applicable, during the Term, has or may acquire the right to grant such licenses, provided
that any sublicensing or resale to any Korean Company by FCE shall be subject to POSCO Power’s
consent in its sole discretion, and provided, further, that the foregoing license
shall be subject to the payment by FCE to POSCO Power of royalties to be mutually determined by the
Parties in a commercially reasonable good faith manner, it being understood and agreed that
if the Parties are

 

19

 

unable to reach agreement within sixty (60) days following the initial request of FCE, the
royalties determined pursuant to Section 4.4 above shall be final and binding upon the Parties;

(iii) POSCO further agrees that POSCO shall, at the request of FCE, continue to supply POSCO
Modules to FCE, if such are in production, on terms and conditions to be mutually agreed upon by
the Parties in good faith; and

(iv) POSCO Power, on its own behalf and on behalf of POSCO Affiliates, shall pay FCE all
royalty amounts then due and owing as of the date of termination and all reimbursement amounts then
due and owing as of the date of termination and actual damages.

The foregoing provisions of this Section 9.2 represent the sole and exclusive remedy of FCE in the
event of a material breach by POSCO Power.

9.3 POSCO Power Termination by Material Breach of FCE.

(a) In the event FCE materially breaches any representation or warranty or materially fails to
perform any obligation or undertaking to be performed by it under this Agreement and any other
Transaction Agreements and such material breach or failure is not cured within sixty (60) days
after notice from POSCO Power specifying the nature of the breach, then, POSCO Power shall have the
right to terminate this Agreement after complying with the procedures set forth in Article
XIV below (except as noted below in Section 9.3(b)(i)).

(b) POSCO Power Remedy. In the event that POSCO Power terminates this Agreement
pursuant to Section 9.3(a) above:

(i) FCE shall pay to POSCO Power actual damages, plus, if the FCE Technology has not been
fully transferred to POSCO Power, as scheduled in the STTP, FCE shall promptly and in a
commercially reasonable manner transfer to POSCO Power all of the remaining FCE Technology, and
further acknowledge and agree that POSCO Power shall be entitled to seek and obtain from FCE the
specific performance of FCE’s obligations under this section in the U.S. District Court for the
Southern District of New York, or in the event that court lacks jurisdiction, in any competent
court in the State of New York, if FCE fails to transfer the FCE Technology to POSCO Power, as set
forth in the STTP;

(ii) POSCO Power may retain all FCE Technology, including all copies and summaries thereof,
furnished by FCE prior to such termination;

(iii) POSCO Power shall have a non-exclusive perpetual license and right in and of the FCE
Technology to construct, assemble, manufacture, use, sell, import, maintain, service, reconfigure
and/or repair the POSCO Modules in the Korean Market and to sell, maintain, service, reconfigure
and/or repair the POSCO Modules in the Non-Exclusive Territory; and provided, further, that the
foregoing license shall be subject to the payment by POSCO Power to FCE of royalties to be mutually
determined by the Parties in a commercially reasonable good faith manner, it being understood and
agreed that if the

 

20

 

Parties are unable to reach agreement within sixty (60) days following the initial request of
FCE, the royalties determined pursuant to Section 4.4 above shall be final and binding upon the
Parties; and

(iv) FCE further agrees that FCE shall, at the request of POSCO Power, continue to supply DFC
Components on reasonable terms and conditions to be mutually agreed upon by the Parties in good
faith.

The foregoing provisions of this Section 9.3 represent the sole and exclusive remedy of POSCO Power
in the event of a material breach by FCE. For the purpose of Section 9.3(b)(i) above, the Parties
hereto consent to the jurisdiction of such court in respect of any action or proceeding thereunder.

9.4 Return of FCE Technology. In the event this Agreement is terminated pursuant to
Section 9.1 or Section 9.2 above, POSCO Power shall return to FCE all FCE Know-How, including all
copies and summaries thereof, furnished by FCE prior to such termination and shall not be permitted
to make any further use of such FCE Technology.

9.5 Return of POSCO Technology. In the event this Agreement is terminated pursuant
to Section 9.1 or Section 9.3 above, FCE shall return to POSCO Power all POSCO Technology including
all copies and summaries thereof, furnished by FCE prior to such termination and shall not be
permitted to make any further use of such POSCO Technology.

9.6 Survival. Upon expiration or termination of this Agreement as provided herein,
or by operation of law or otherwise, all rights granted and all obligations undertaken hereunder
shall terminate forthwith except the following provisions:

(a) Upon expiration of the Term, Sections 2.4 (‘License to POSCO Power Upon Expiration of the
Term’), 2.5 (‘License to FCE Upon Expiration of the Term,) and 4.4 (‘Royalty Determination Firm’)
and Articles III (‘Ownership of Intellectual Property’), IX (‘Termination’), X (‘Indemnification’),
XI (‘Confidential Information’), XII (‘Notices’) and XIII (‘Entire Agreement’); and

(b) Upon termination of this Agreement, Section 4.4 (‘Royalty Determination Firm’), Articles
III (‘Ownership of Intellectual Property’), IX (‘Termination’), X (‘Indemnification’), XI
(‘Confidential Information’), XII (‘Notices’) and XIII (‘Entire Agreement’) and the full STTP.

X. INDEMNIFICATION

10.1 POSCO Power Obligations. POSCO Power shall indemnify and hold harmless FCE and
its affiliates, officers, directors, members, employees and agents, against any and all judgments,
damages, liabilities, costs and losses of any kind (including reasonable attorneys’ and experts’
fees) (collectively, “Losses”) that arise out of or relate to (i) any breach by POSCO Power of its
representations or warranties or covenants under this Agreement, (ii) any claim, action or
proceeding that arises from defects caused by the manufacture by POSCO Power or POSCO Affiliates of
POSCO

 

21

 

Modules, or (iii) any claim, action or proceeding that arises from defects caused by the
servicing by POSCO Power or POSCO Affiliates of the FCE Products; provided,
however, that FCE must promptly notify POSCO Power in writing of any such claim, action or
proceeding (but the failure to do so shall not relieve POSCO Power of any liability hereunder
except to the extent that POSCO Power has been materially prejudiced therefrom). POSCO Power may
elect, by written notice to FCE within ten (10) days after receiving notice of such claim, action
or proceeding to assume the defense thereof with counsel acceptable to FCE. If POSCO Power does
not so elect to assume such defense or disputes its indemnity obligation with respect to such
claim, action or proceeding, or if FCE reasonably believes that there are conflicts of interest
between FCE and POSCO Power or that additional defenses are available to FCE with respect to such
defense, then FCE shall retain its own counsel to defend such claim, action or proceeding, at POSCO
Power’s defense. POSCO Power shall reimburse FCE for expenses as these are incurred under this
Section. FCE shall have the right, at its own expense, to participate in the defense of any claim,
action or proceeding against which it is indemnified hereunder; provided, however,
that FCE shall have no right to control the defense, consent to judgment or agree to settle any
such claim, action or proceeding without the written consent of POSCO Power unless FCE waives its
right to indemnity hereunder. POSCO Power, in the defense of any such claim, action or proceeding,
except with the written consent of FCE, shall not consent to entry of any judgment or enter into
any settlement which (i) does not include, as an unconditional term, the grant by the claimant to
FCE of a release of all liabilities in respect of such claims or (ii) otherwise adversely affects
the rights of FCE.

10.2 FCE Obligations. FCE shall indemnify and hold harmless POSCO Power and its
affiliates, officers, directors, members, employees and agents, against any and all judgments,
damages, liabilities, costs and losses of any kind (including reasonable attorneys’ and experts’
fees) (collectively, “Losses”) that arise out of or relate to (i) any breach by FCE of its
representations, warranties, covenants or agreements under this Agreement (it being understood
and agreed that any indemnity with respect to the FCE Products shall be governed by a separate
purchase order contract), (ii) any claim, action or proceeding that arises from or relates to the
servicing by FCE of POSCO Modules or FCE Products, (iii) any claim, action or proceeding that
arises from any licensor of FCE or any third party, in or relating to the FCE Technology (it
being understood and agreed that this obligation includes an obligation to take all necessary
steps to ensure the continued use by POSCO Power of the FCE Technology, without interruption),
provided, however, that POSCO Power must promptly notify FCE in writing of any such
claim, action or proceeding (but the failure to do so shall not relieve FCE of any liability
hereunder except to the extent that FCE has been materially prejudiced therefrom). FCE may elect,
by written notice to POSCO Power within ten (10) days after receiving notice of such claim, action
or proceeding to assume the defense thereof with counsel acceptable to POSCO Power. If FCE does
not so elect to assume such defense or disputes is indemnity obligation with respect to such claim,
action or proceeding, or if POSCO Power reasonably believes that there are conflicts of interest
between FCE and POSCO Power or that additional defenses are available to POSCO Power with respect
to such defense, then POSCO Power shall retain its own counsel to defend such claim, action or
proceeding, at FCE’s defense. FCE shall reimburse POSCO Power for expenses as these

 

22

 

are incurred under this Section. POSCO Power shall have the right, at its own expense, to
participate in the defense of any claim, action or proceeding against which it is indemnified
hereunder; provided, however, that POSCO Power shall have no right to control the
defense, consent to judgment or agree to settle any such claim, action or proceeding without the
written consent of FCE unless POSCO Power waives its right to indemnity hereunder. FCE, in the
defense of any such claim, action or proceeding, except with the written consent of POSCO Power,
shall not consent to entry of any judgment or enter into any settlement which (i) does not include,
as an unconditional term, the grant by the claimant to POSCO Power of a release of all liabilities
in respect of such claims or (ii) otherwise adversely affects the rights of POSCO Power.

10.3 Limitation of Damage. In no event, whether as a result of breach of contract,
warranty, tort (including negligence), strict liability, indemnity, or otherwise, shall either
Party or its subcontractors or suppliers be liable to the other Party for loss of profit or
revenues, loss of use of the DFC Power Plant or any associated equipment, cost of capital, cost of
substitute equipment, facilities, services or replacement power, downtime costs, claims of the
indemnified Party’s customers for such damages, or for any special, consequential, incidental,
indirect or exemplary damages.

XI. CONFIDENTIAL INFORMATION

11.1 POSCO Power Obligations. All written information marked “proprietary” or
“confidential” (or if oral, subsequently reduced to a writing so marked and delivered to the
receiving Party within thirty (30) days of its oral disclosure) which FCE discloses to POSCO Power
as a result of the provisions of this Agreement, whether contained in blueprints, drawings, written
reports, letters or memoranda, process descriptions, operating procedures and other written data,
shall be treated as confidential unless (a) such information shall have been in the possession
POSCO Power prior to its receipt from the FCE, (b) such information is or becomes part of the
public knowledge or literature through no fault of POSCO Power, or (c) such information shall
otherwise become available to POSCO Power from a source other than FCE, said source not being
violative of any obligation of secrecy with respect to such information. Information which is so
considered to be confidential shall be held by POSCO Power for its sole benefit and used only in
accordance with this Agreement; provided that POSCO Power may share proprietary or
confidential information with POSCO Affiliates for the purpose set forth in Section 2.1(a)(iii)
above; and, further provided, that POSCO Power shall cause POSCO Affiliates to restrict the
use so as to be consistent with the terms of this Agreement and to restrict disclosure to its
employees, on a need-to-know basis, of any confidential or proprietary information shared with
POSCO Affiliates. POSCO Power shall use all reasonable efforts to prevent the use of all or any
part of such confidential information belonging to FCE in any other connection or the transmission
thereof to third parties unless and until it has first obtained the written consent of FCE
specifically authorizing such use or transmission. The Parties understand that information may be
provided which is subject to a confidentiality agreement with a third Party. The Parties agree that
such information shall be held in confidence in accordance with the terms of the third Party
confidentiality agreement. No Party shall be obligated to divulge third party confidential
information to the other Party. POSCO Power shall require, as a

 

23

 

condition precedent to any agreement for any FCE Product or POSCO Product sale, lease, or
other similar transaction, that the purchaser, lessor or customer for such transaction must agree
to accept the terms of this paragraph, including the requirement for any subsequent purchaser to
accept the terms of this paragraph. Any breach of the confidentiality provisions of this paragraph
may be considered material breach of this agreement by the non-breaching Party.

11.2 POSCO Affiliate. The Parties agree that each POSCO Affiliate shall enter into a
confidentiality agreement with POSCO Power containing the terms that are substantially similar to
the confidentiality provision set forth above.

11.3 FCE and POSCO Power Obligations. All obligations under this article shall apply
mutatis mutandis to the Parties.

XII. NOTICES

All notices pursuant to this Agreement shall be in writing and will be deemed to have been
duly given if delivered personally or by internationally recognized courier service, or by
facsimile to the parties at the addresses set forth below.

if to FCE, to:

FuelCell Energy, Inc.

3 Great Pasture Road

Danbury, CT 06813

Facsimile: (203) 825-6079

Attention: Ben Toby

with copy to:

FuelCell Energy, Inc.

3 Great Pasture Road

Danbury, CT 06813

Facsimile: (203) 825-6069

Attention: Ross Levine

if to POSCO Power, to:

POSCO Power

POSTEEL Tower 20th Fl. 735-3

Yeoksam-dong, Gangnam-gu

Seoul, 135-080 KOREA

Attention: Taehyoung (TH) Kim

All notices under this Agreement that are addressed as provided in this Section (i) if
delivered personally or by internationally recognized courier service, will be deemed given upon
delivery or (ii) if delivered by facsimile, will be deemed given when confirmed. Either Party from
time to time may change its address or designee for

 

24

 

notification purposes by giving the other Party notice of the new address or designee and the
date upon which such change will become effective.

XIII. ENTIRE AGREEMENT

This Agreement, including any Exhibits and Schedules attached hereto, and any other
Transaction Agreements which are incorporated into this Agreement by this reference, constitute the
full and complete statement of the agreement of the Parties with respect to the subject matter
hereof and supersedes all prior and contemporaneous agreements and understandings, whether written
or oral, between the Parties with respect to the subject matter hereof. There are no
representations, understandings or agreements relating to this Agreement that are not fully
expressed in this Agreement other than those representations, understandings or agreements
contained in the other Transaction Agreements. To the extent there is any inconsistency between
this Agreement and any other Transaction Agreements, the provisions of this Agreement shall
prevail.

XIV. APPLICABLE LAW AND ARBITRATION

14.1 Governing Law. This Agreement shall be governed by and construed in accordance
with the substantive laws of the State of New York, U.S.A., without giving effect to any choice of
law rules that may require the application of the laws of another jurisdiction.

14.2 Efforts to Resolve by Mutual Agreement. Any dispute, action, claim or
controversy of any kind arising from or in connection with this Agreement or the relationship of
the Parties under this Agreement (the “Dispute”) whether based on contract, tort, common law,
equity, statute, regulation, order or otherwise, shall be resolved as follows:

(i) Upon written request of either FCE or POSCO Power, the Parties shall meet and attempt to
resolve any such Dispute. Such meetings may take place via teleconference or videoconference. The
Parties shall meet as often as the Parties reasonably deem necessary to discuss the problem in an
effort to resolve the Dispute without the necessity of any formal proceeding.

(ii) Formal proceedings for the resolution of a Dispute may not be commenced until the later
of (i) the Parties concluding in good faith that amicable resolution through continued negotiation
of the matter does not appear likely; or (ii) the expiration of a sixty (60) day period immediately
following the initial request by either Party to resolve the Dispute; provided,
however, that this Section 14.2 will not be construed to prevent a Party from instituting
formal proceedings earlier to avoid the expiration of any applicable limitations period, to
preserve a superior position with respect to other creditors or to seek temporary or preliminary
injunctive relief.

14.3 ICC Arbitration. If the Parties are unable to resolve any Dispute pursuant
Section 14.2 above and except as otherwise specified in Section 9.3(b)(i), the Dispute shall be
finally settled under the Rules of Arbitration (the “Rules”) of the International Chamber of
Commerce (“ICC”) by three (3) arbitrators designated by the Parties. Each

 

25

 

Party shall designate one arbitrator. The third arbitrator shall be designated by the two
arbitrators designated by the Parties. If either Party fails to designate an arbitrator within
thirty (30) days after the filing of the Dispute with the ICC, such arbitrator shall be appointed
in the manner prescribed by the Rules. An arbitration proceeding hereunder shall be conducted in
London, U.K., and shall be conducted in the English language. The decision or award of the
arbitrators shall be in writing and is final and binding on both Parties. The arbitration panel
shall award the prevailing Party its attorneys’ fees and costs, arbitration administrative fees,
panel member fees and costs, and any other costs associated with the arbitration, the enforcement
of any arbitration award and the costs and attorney’s fees involved in obtaining specific
performance of an award; provided, however, that if the claims or defenses are
granted in part and rejected in part, the arbitration panel shall proportionately allocate between
the Parties those arbitration expenses in accordance with the outcomes; provided,
further, that the attorney’s fees and costs of enforcing a specific performance arbitral
award shall always be paid by the non-enforcing Party, unless the applicable action was determined
to be without merit by final, non-appealable decision. The arbitration panel may only award
damages as provided for under the terms of this Agreement and in no event may punitive,
consequential and special damages (or as otherwise specified in this Agreement, including, without
limitation, Section 10.3) be awarded. In the event of any conflict between the Rules and any
provision of this Agreement, this Agreement shall govern.

14.4 Waiver of Jury Trial. The Parties hereto hereby irrevocably waive, 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 Section 9.3(b)(i).

XV. MISCELLANEOUS

15.1 Amendment. This Agreement may not be modified or amended except by a writing
duly signed by the authorized representatives of both Parties.

15.2 Severability. In the event any one or more of the provisions contained in this
Agreement shall be invalid, illegal or unenforceable in any respect, said provision(s) shall be
deemed severed and deleted here from and the validity, legality and/or enforceability of the
remaining provisions contained herein shall not in any way be affected or impaired thereby.

15.3 Government Information. Nothing in this Agreement shall authorize the
disclosure of, or access to, classified or restricted information, material or know-how of the
Government of the United States of America to persons not authorized or licensed to disclose or
receive such classified or restricted information.

15.4 Independent Contractors. The Parties are independent contractors, and nothing
contained in this Agreement shall be construed as (a) giving either Party the power to direct and
control the day-to-day activities of the other, (b) constituting either Party as a partner, a joint
venture, a co-owner or a fiduciary of the other or (c) creating any other form of legal association
that would impose liability on one Party for the act or

 

26

 

failure to act of the other or as providing either Party with the right, power or authority
(express or implied) to create any duty or obligation of the other.

15.5 Assignment. This Agreement will be binding upon and inure to the benefit of the
Parties and their respective successors and permitted assigns. Neither Party may, nor will it have
the power to, assign this Agreement, or any part hereof, without the prior written consent of the
other Party, and any such unauthorized assignment shall be null and void, except that the Parties
acknowledge and agree that POSCO Power may, without the consent of FCE assign its rights and
obligations to any entity controlled by POSCO Power or a POSCO Affiliate, provided that POSCO Power
remains liable for the obligations set forth in this Agreement and in other Transaction Documents
to which it is a Party. In the event of any other assignment of this Agreement by either Party,
the assignee shall assume, in writing (in form and substance reasonably satisfactory to the other
Party), the rights and obligations of the assigning Party under this Agreement.

15.6 No Third Party Beneficiary. Except as expressly contemplated herein, this
Agreement shall be binding upon and inure solely to the benefit of each Party hereto and nothing in
this Agreement is intended to confer upon any other person or entity any rights or remedies of any
nature whatsoever under or by reason of this Agreement.

15.7 Headings. The headings preceding the text of Articles and Sections included in
this Agreement and the headings to Exhibits and Schedules attached to this Agreement are for
convenience only and shall not be deemed part of this Agreement or be given any effect in
interpreting this Agreement.

15.8 Right to Injunction; Specific Performance. The Parties further acknowledge and
agree that POSCO Power will suffer irreparable harm, which is not compensable by monetary damage in
the event the FCE Technology has not been fully transferred to POSCO Power at the time of the
termination of this Agreement due to a material breach by FCE hereunder. Accordingly, the Parties
agree that POSCO Power shall be entitled to an injunction or injunctions to enforce specifically
the transfer of the FCE Technology to POSCO Power in accordance with Section 9.3(b)(i) above. The
Parties further acknowledge and agree that each Party will suffer irreparable harm, which is not
compensable by monetary damage, in the event the other breaches its obligations under Article XI.
Accordingly, in the event of a breach by one Party of such obligations, the other shall be entitled
to injunction or injunctions to enforce and remedy such breach in addition to all other remedies
available at law or in equity.

15.9 Force Majeure. Neither Party shall be liable to the other for a failure to
perform any of its obligations under this Agreement, except for payment obligations under this
Agreement, during any period in which such performance is delayed due to a Force Majeure, and if
such Party notifies the other of the delay; provided, however, that in the event a period
of Force Majeure restricts a Party’s performance for greater than 120 days, the non-restricted
Party may terminate this Agreement without further cause and without liability for such
termination. The date of delivery shall be extended for a period equal to the period of a delay due
to Force Majeure, in addition to any additional time as may be reasonably necessary to overcome the
effect of such excusable delay; provided, 

 

27

 

further, that the Party seeking relief under this Section 15.9 shall promptly notify
the other of the Force Majeure event, the anticipated resolution of such event, the actual
resolution of such event and the actual impact on its obligations hereunder.

XVI. SALES TARGETS AND EXCLUSIVITY

16.1 Sales Targets. The Parties acknowledge that this Agreement is based on, among other
things, the business plan as to the sales expectations set forth in Exhibit D attached hereto.

(a) In the event the cumulative sales of Fuel Cell Stack Modules in the Korean Market as of
December 31, 2013, have not reached the target figure of 112 MW as set forth in Exhibit D, the
Parties shall undertake a performance review in good faith and in a commercially reasonable manner
to determine the feasibility and desirability of the continuation of the exclusivity set forth in
Sections 2.1(a)(i) and 2.2 hereunder, as well as the Korean Market exclusivity provisions set forth
elsewhere in the Transaction Agreements. The performance review shall take into consideration,
among other things, past performance, market conditions, business prospects, profitability, bona
fide efforts by the Parties, quality issues affecting marketability and future plans. In the event
that after discussions in good faith the Parties are not able to agree, disputes shall be resolved
through Sections 14.2 and 14.3 above. The decision or award of the arbitrators pursuant to Section
14.3 shall be final and binding on both Parties.

(b)(i) It is acknowledged and agreed by POSCO Power that during the term of this Agreement,
POSCO Power shall make commercially reasonable efforts to commercialize the technology licensed
hereunder in the Korean Market; and

(ii) it is acknowledged and agreed by FCE that during the term of this Agreement, FCE shall
make commercially reasonable efforts to improve and enhance the DFC technology to maintain market
competitiveness.

The Parties shall undertake subsequent performance review(s) from time to time on dates to be
mutually agreed by the parties, starting January 1, 2014, but no more than once in two (2) year
intervals during the term of this Agreement. The performance review shall take into consideration,
among other things, past performance, market conditions, business prospects, profitability, bona
fide efforts by the Parties, quality issues affecting marketability and future plans. In the event
that after discussions in good faith the Parties are not able to agree, disputes shall be resolved
through Sections 14.2 and 14.3 above. The decision or award of the arbitrators pursuant to Section
14.3 shall be final and binding on both Parties.

 

28

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed in a manner binding upon
them by their duly authorized officers as of the date first above written.

	 	 	 	 	 
	 	FUELCELL ENERGY, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	

POSCO POWER

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

29

 

EXHIBIT A

STTP

Confidential
treatment has been requested as to certain portions of this exhibit marked with an *.
Such portions have been redacted and filed separately with the SEC.

STACK TECHNOLOGY TRANSFER PROGRAM

THIS STACK TECHNOLOGY TRANSFER PROGRAM (“STTP”) is made and entered into this 27th day of
October, 2009, to be effective on the Effective Date of the STTA as defined below, by and between
FUELCELL ENERGY, INC., a Delaware corporation having a place of business at 3 Great Pasture Rd.,
Danbury, CT 06813, U.S.A. (“FCE”) and POSCO Power, a Korean corporation having a place of business
at Posteel Tower 20th floor, 735-3, Yeoksam-dong, Gangnam-gu, Seoul 135-080, Korea (“POSCO
Power”). FCE and POSCO Power may be referred to hereunder as the “Parties.”

This STTP is made and entered into by the Parties pursuant to the Stack Technology Transfer
Agreement (“STTA”) dated October 26, 2009, and is made part of the STTA. The purpose of this STTP
is to describe the transfer by FCE to POSCO Power of the FCE Technology which shall have the
meaning set forth in the STTA.

POSCO Power and FCE are parties to the following agreements (collectively the “Existing
Agreements”): (i) the Technology Transfer, Distribution and Licensing Agreement for the transfer of
Balance of Plant technology (the “Technology Transfer Agreement” or “TTA”) and the Alliance
Agreement (the “Alliance Agreement” or “AA”), both executed as of February 7, 2007; (ii) the
Technology Transfer Program (“TTP”) executed as of July 11, 2007; (iii) the Contract for the Supply
of DFC Plants and DFC Modules from FCE to POSCO Power (“2008 Purchase Contract”) executed as of
April 22, 2008; (iv) the Contract for the Supply of DFC Modules and DFC Components from FCE to
POSCO Power (“2009 Purchase Contract”) executed as of June 9, 2009; and (v) the Securities Purchase
Agreement by and between FCE and POSCO Power (the “2009 Securities Purchase Agreement”) executed as
of June 9, 2009.

Capitalized terms used herein, but not defined herein, shall have the meanings given to them
in the Existing Agreements.

 

 

 

Section 1. Technology to be transferred by STTP

FCE shall transfer the following technologies, know-how and information to POSCO Power and POSCO
Affiliates in accordance with the schedule set forth in Section 3 of this STTP:

	 	1.1.	 	Manufacturing Process Information (see Exhibit “B” for a complete list of documentation)

	 	1.1.1.	 	Module Assembly Process Information

	 	1.1.1.1.	 	General Facility Recommendations

	 
	 	1.1.1.2.	 	Stacking

	 
	 	1.1.1.3.	 	Manifolding

	 
	 	1.1.1.4.	 	Final Module Assembly

	 
	 	1.1.1.5.	 	Instrumentations

	 
	 	1.1.1.6.	 	Standard Tooling used throughout Module Assembly Facility

	 	1.1.2.	 	Module Conditioning Process Information

	 	1.1.2.1.	 	MW Module Conditioning

	 
	 	1.1.2.2.	 	Sub-MW Module Conditioning

	 	1.1.3.	 	Module Teardown and Repair Process Information

	 	1.2.	 	Non-Repeating Component and Module Component Design Documentation (see Exhibit “C”)

	 
	 	1.3.	 	Design Documentation for Conditioning Facilities (see Exhibit “D”)

	 	1.3.1.	 	MW Conditioning Facility

	 
	 	1.3.2.	 	Sub-MW Conditioning Facility

Section 2. Method for the Technology Transfer

2.1 Personnel

Each of FCE and POSCO Power/POSCO Affiliate will appoint a dedicated Program Manager to serve as
the primary point of interface between POSCO Power/POSCO Affiliate and FCE. FCE will also support
the program with management and expertise gathered from its manufacturing department and related
departments to successfully execute this STTP.

2.2 Mechanism for the Transfer of Technology

Information will be transferred using a web-based portal as described in Exhibit “B”. FCE will
notify POSCO Power as soon as practicable when any changes to the information have been made by
FCE, and will post such modified information on the web portal for downloading by POSCO
Power/POSCO Affiliate.

A procedure for managing changes to the NRC or module component designs that affect fabrication,
assembly or conditioning shall be implemented and maintained by both parties mutually. FCE will
notify POSCO Power of impacts due to changes made to the RC that affect module assembly,
conditioning or repair and transfer revised procedures. In addition, a procedure for managing the
as-built configuration (the “Module Build-Book system” described in Exhibit “B”) of the modules
assembled at the POSCO facility shall be implemented and maintained by both parties mutually.

 

 

 

2.3 Training

2.3.1 Certification Training Program for Module Assembly and Conditioning

FCE shall develop a Certification Training Programs for Module Assembly and Conditioning, which
shall be offered to POSCO Power and/or POSCO Affiliate consistent with the scope and timing of the
technology transfer program described hereunder. The Certification Training Program for Module
Assembly shall include training in the procedures for stacking, manifolding, final module assembly,
instrumentation installation and teardown. The Certification Training Program for Module
Conditioning shall include training in the procedures for conditioning of finished stack modules
prior to their shipment to customer sites. POSCO Power agrees to undertake the training program
designed by FCE, and FCE agrees to confer certified status on employees of POSCO Power and/or POSCO
Affiliate who successfully complete the training. Additionally, POSCO Power and/or POSCO Affiliate
agrees to undergo periodic refresher training by FCE to maintain the certification status of all
personnel who are to be employed in the assembly, conditioning and teardown of fuel cell stack
modules as determined by the Joint Committee.

2.3.2 Co-Work and On-the-Job Training (“OJT”)

POSCO Power/POSCO Affiliate may obtain the FCE Technology through co-work and OJT by mutual
agreement or as defined by the certification training programs. This training will take place on a
continuous basis, at FCE’s facilities in the U.S., at POSCO Power/POSCO Affiliate’s facilities in
Korea, and via remote communications.

2.3.3 Organization and Personnel Recommendations

FCE will provide a recommended organizational structure, job descriptions and required background
experience for each position. FCE will specify which job descriptions need certification,
including the duration of the certification, per paragraph 2.3.1.

2.4 Meetings

2.4.1 Regular Meetings

Regular meetings will take place as required. Following is a brief description of the various
types of meetings which shall be scheduled:

	 	a.	 	Program Reviews are conducted to ensure that milestones have been met in
accordance with the requirements as defined in Exhibit “A”.

	 
	 	b.	 	Facility Design Reviews are technical reviews of manufacturing facilities, and
they are conducted to ensure best practices in manufacturing are captured prior to
commencing construction activities. FCE proposes both preliminary and final
Facility Design Reviews.

 

 

 

2.4.2 Ad Hoc Meetings

Ad Hoc meetings beyond the above regular meetings will take place on an as-needed basis by mutual
agreement.

Section 3. Schedule

The schedule for the transfer of technology between FCE and POSCO Power and/or POSCO Affiliate is
provided in Exhibit “A” of this STTP.

Section 4. Costs

FCE shall use commercially reasonable efforts to make available technical consultation and
assistance in connection with POSCO Power/POSCO Affiliate’s activities under this STTP without
additional charge, provided, however, that FCE shall not be obligated to provide such assistance in
excess of 500 or TBD man-days for the duration of the STTA. Additional man-days beyond 500 or TBD
man-days may be provided by FCE subject to availability of personnel. Payments from POSCO Power to
FCE for additional man-days beyond 500 or TBD man-days, if any, shall be based upon mutually
agreeable terms and conditions. For the purposes of this section, a “man-day” shall be defined as
eight (8) working hours, and a “man-year” shall be defined as 1,920 working hours.

Tracking. FCE shall continually track the number of man-days consumed, and the number of
man-days remaining. FCE shall provide on a quarterly basis a Work Progress Summary outlining
activities and deliverables completed or ongoing from the prior reporting period, as well as a
summary of the number of man-hours remaining.

Documented travel and living expenses for FCE personnel during visits to POSCO Power/POSCO
Affiliate facilities in Korea or other locations, when carried out pursuant to this STTP or at the
request of POSCO Power or POSCO Affiliate, shall be borne by POSCO Power or POSCO Affiliate, or if
paid by FCE, shall be reimbursed to FCE. The payment standard for traveling expenses by FCE’s
personnel is provided as Attachment 1 to this STTP. Changes to the payment standard as provided in
Attachment 1 shall be by mutual agreement.

Section 5. Quality Plans

Current quality methodologies for Module Assembly and Conditioning will be transferred as listed
in Section 1. Both parties will work together to develop and exchange future improved quality
assurance methodologies for Module Assembly and Conditioning.

Quality information for the repeating components to be transferred will be of three categories:
(1) processes that POSCO Power can duplicate to ensure the component meets the quality
requirements, for example, visual inspection criteria; (2) quantitative
information that FCE has measured that shows the component meets the quality requirements, for
example, package and matrix dimensions; (3) certification of detailed specifications that FCE has
measured but cannot transfer that ensures the component meets the quality requirements. The details
of these three levels will be developed by the Joint Committee.

 

 

 

Section 6. Module Repair

Both parties will work together to diagnose and repair modules with performance issues in the
field or in the POSCO Power Module facility. FCE will also provide diagnosis and repair experience
for POSCO Power/POSCO Affiliate personnel at the POSCO Teardown Facility. Also, both parties will
work together to develop and share future improved module repair methodologies.

Section 7. Access to Data

For every module produced, POSCO Power will grant access to and/or transfer all data listed below
to FCE:

	 	a.	 	Module stacking and assembly manufacturing process measurements, inspection
findings, quality data and in-process pictures via the Module Build Book;

	 
	 	b.	 	Fabricated NRC and Module component quality data per the protocols for
inspection of the incoming parts;

	 
	 	c.	 	Module conditioning data through the PI data system;

	 
	 	d.	 	Commercial power-plant field operation data from the EBOP, MBOP and Module
for the life of the module through the PI data system.

Section 8. Quality Audits

From time to time, to ensure that POSCO Power is working in accordance to FCE’s specifications,
upon mutual agreement as to reasonable time and condition, FCE may inspect: (1) POSCO Power’s
module during its manufacture, including stack assembly, module assembly, conditioning, repair and
storage; (2) POSCO Power’s training records of personnel involved in assembling, conditioning, and
storing the fuel-cell modules, as well as work instructions and other training material developed
by POSCO Power for the production of fuel-cell modules; and (3) POSCO Power’s tooling and tooling
documentation used to produce fuel-cell modules.

Section 9. Obligation to Exercise Best Good Faith Efforts

Consistent with the objectives of the Alliance Agreement, the Parties shall use the best good
faith efforts to cooperate with each other to effectuate the transactions contemplated by the STTA
and this STTP.

Section 10. Action Plans for Technology Transfer Program

Detailed action plans for this STTP is attached hereto an Exhibit “A” and made part hereof.

 

 

 

11. Joint Development Program

POSCO Power and FCE acknowledge and agree to participate in a program of joint product development
(hereafter “Joint Development Program”) as described in this section. The particular
characteristics of the Joint Development Program shall be subject to mutual agreement of the
parties. It is anticipated that the Joint Development Program shall include one or both of the
following components: (a) the adaptation of New DFC-Based Products and New DFC-Based Technology
for the Korean Market, and/or (b) the joint development of New Joint Products.

A. Development Group. Consistent with the requirements of Section 2.8(b) of the
STTA, POSCO Power and FCE shall identify and designate sufficient business, financial
and technical personnel and resources to form a joint committee development planning
group (hereafter “Development Group”) that shall meet, either in person or via
teleconference, at mutually acceptable intervals for the planning and execution of the
Joint Development Program.

B. Marketability Evaluation. Product development plans which are to be considered
for development under the Joint Development Program (hereafter “Plans”) shall consider
and incorporate, but not be limited to, the following components: (i) initial technical,
economic and market analysis to establish required product attributes; (ii) product
performance criteria (e.g. power output rating, efficiency, fuel type and quality, use of
waste heat, etc.); (iii) pricing targets; (iv) product
development schedule including start-up dates, interim milestones, and completion dates; (v) quality plans, including but not
limited to testing and acceptance criteria; (vi) market size; and (vii) explicit identification
of projects that will be considered New Joint Products. The foregoing criteria shall be
used to guide the Parties in the selection and allocation of resources to the execution of
Plans. The Parties further agree and acknowledge that Joint Development Program relates
only to the development of product(s), and that all terms relating to the purchase, sale,
distribution, and marketing of product(s), among other terms, shall be governed by the
Transaction Agreements or by separate purchase agreement(s).

C. Cooperative Efforts of the Parties. The Parties agree to undertake the Joint
Development Program activities in a spirit of partnership, and shall strive to foster dialog
and mutual cooperation to achieve efficient and expeditious outcomes, and maximize the
chances of success. In addition, consistent with the requirements of Section 2.11 of the
STTA, each Party agrees to provide the other Party with technical and related information
reasonably necessary and to the extent reasonably available to carry out their respective
responsibilities under the Joint Development Program.

 

 

 

D. Resource Allocation and Development Costs. Each party agrees to bear its own
costs incurred in the Joint Development Program, except as specifically provided for in a
separate instrument. The Parties acknowledge and agree that each Party’s participation in
the Joint Development Program shall be determined based upon the availability of its
own technical personnel and financial resources, at the sole discretion of each individual
participating Party. Further, the contribution of each party in terms of intellectual property
shall be duly considered, alongside consideration of the level of effort in personnel and resources
contributed to the Joint Development Program, when determining joint ownership of resulting
intellectual property.

E. POSCO Power will be granted access to the following information for existing
designs transferred under the BOP TTP.

	 	•	 	Gas Compositions at each position (A/I, A/O, C/I, C/O)

	 
	 	•	 	Temperatures at each position

	 
	 	•	 	Pressures at each position (or pressure drop)

	 
	 	•	 	Stack performance (I-V curve, fuel and oxidant utilization)

	 
	 	•	 	Stack operating windows (in terms of temperature, gas flow rate, pressure, ramp
up/down rate and limiting factor, vibration resisting limit, humidity, salinity)

	 
	 	•	 	Information about simulation/pre-post processing tools (CAD, FEA, CFD) for
easier information exchange in case of JDP

F. For C1400 and C350 module designs, FCE will transfer available model results
describing uniformity or variation of gas flow rates, pressures, and temperatures.

Both parties hereto acknowledge that the foregoing Sections accurately represent the understanding
and agreement of the parties regarding technology transfer by FCE to POSCO Power/POSCO Affiliates.

	 	 	 
	Dated: October 27, 2009
	 	 
	 
	 	 
	Fuel Cell Energy, Inc.

	 	POSCO Power
	 
	 	 
	 
	 	 

	 

	 	 
	By:

	 	By:

 

 

 

EXHIBIT “A”

ACTION PLAN

FOR STACK TECHNOLOGY TRANSFER

PROGRAM

The purpose of this Action Plan for Stack Technology Transfer Program (the “Action Plan”) is
to describe general understanding and background relating to the technology transfer by FCE to
POSCO Power/POSCO Affiliate and to set forth a detail action plan and an outline of the timing for
the technology transfer.

1 Technology to be Transferred

FCE shall transfer to POSCO Power the technology, information, and know-how described in Section 1
of the STTP.

2 Schedule

A target schedule for the transfer of technology described in Section 1 this STTP is shown in
Attachment 2. The target schedule is subject to modification by the Joint Committee.

 

 

 

Exhibit “B”

Manufacturing Technology to be transferred by STTP

FCE shall transfer the following technologies, know-how and information to POSCO Power and POSCO Affiliates in
accordance with the schedule set forth in Section 3 of this STTP.

	1.1.1	 	Module Assembly Process Information

1.1.1.1 Facility

*

1.1.1.2 Stacking

*

1.1.1.3 Manifolding

*

1.1.1.4 Final Module Assembly

*

1.1.1.5 Instrumentation

*

1.1.1.6 Standard Tooling used throughout Module Assembly Facility

*

1.1.2 Module Conditioning Process Information

*

1.1.3 Module Teardown and Repair Process Information

*

APPENDIX A

Specifications for DFC® Stack Modules

C1400 Stack Module Specification

1.0 Introduction

This specification document describes the interfaces and functional operation of the C1400 Direct FuelCell ®(DFC®) stack module. The C1400 stack module is comprised of four DFC stack modules, and the associated enclosure and process and electrical connections. *

2.0 Scope

This document describes one C1400 module. The specification provides preliminary dimensional and interface data that
can be used for planning and design. Final drawings will be provided as part of formal project data submittal.

3.0 Specifications

3.1 Dimensions and Weights

*

3.2 Mechanical Interfaces

*

* Confidential information has been omitted and filed separately
with the Securities and Exchange Commission pursuant to a request for Confidential Treatment.

 

1

 

3.3 Civil Interfaces

*

Figure 1

Module Foundation Bolt Details from FCE Drawing 12-01

Preliminary, For Planning and Design. Final drawing to be issued during project data submittals

3.4 Electrical and Control Interfaces

*

3.5 Performance Specification

Table 1 summarizes the projected output from the stack module at rated load. *

Table 1

Nominal Stack Module Output at Rated Load

*

Table 2 (to be modified)

Fuel and Air Gas Flows Needed to Produce Specified DC Output

*

* Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to
a request for Confidential Treatment. 

 

2

 

Table 3

Contaminant Limits for Fuel and Air Process Streams

*

3.6 Stack Module Life

*

Table 4

Life Impacts of Stack Operation Transients

*

* Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to
a request for Confidential Treatment. 

 

3

 

APPENDIX B

Specifications for DFC® Components

C1400 Stack Module Kit Scope Specification

1.0 Introduction

This specification describes scope of supply for Direct FuelCell stack module component kits, which will be used in the assembly of C1400 stack modules.

2.0 Scope

This document describes the component kit for one C1400 module. .

3.0 Specifications

3.1 Dimensions and Weights

*

3.2 Component and subassembly listing

*

APPENDIX C

Standard Pre-Shipment Factory Test Report for DFC® Modules

*

* Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to
a request for Confidential Treatment. 

 

4

 

APPENDIX D

Standard Pre-Shipment Factory Inspection Report for DFC® Components

*

Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for Confidential Treatment. 

*

3.3 Civil Interfaces

*

Figure 1

Module Foundation Bolt Details from FCE Drawing 12-01

Preliminary, For Planning and Design. Final drawing to be issued during project data submittals

3.4 Electrical and Control Interfaces

*

3.5 Performance Specification

Table 1 summarizes the projected output from the stack module at rated load. *

Table 1

Nominal Stack Module Output at Rated Load

*

Table 2 (to be modified)

Fuel and Air Gas Flows Needed to Produce Specified DC Output

*

* Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to
a request for Confidential Treatment. 

 

5

 

Table 3

Contaminant Limits for Fuel and Air Process Streams

*

3.6 Stack Module Life

*

Table 4

Life Impacts of Stack Operation Transients

*

* Confidential information has been omitted and filed
separately with the Securities and Exchange Commission pursuant to a request for Confidential
Treatment. 

 

6

 

Exhibit “C”

Design Documentation to be transferred by STTP

FCE shall transfer the following technologies, know-how and information to POSCO Power and POSCO Affiliates in
accordance with the schedule set forth in Section 3 of this STTP.

C1400 Documentation

	 	 	 
	Document Description	 	C1400 Document No.
	*

	 	

C350 Documentation

	 	 	 
	Document Description	 	C350 Document No.
	*

	 	
	 

	 	

APPENDIX A

Specifications for DFC® Stack Modules

C1400 Stack Module Specification

1.0 Introduction

This specification document describes the interfaces and functional operation of the C1400 Direct FuelCell ®(DFC®) stack module. The C1400 stack module is comprised of four DFC stack modules, and the associated enclosure and process and electrical connections. *

2.0 Scope

This document describes one C1400 module. The specification provides preliminary dimensional and interface data that
can be used for planning and design. Final drawings will be provided as part of formal project data submittal.

3.0 Specifications

3.1 Dimensions and Weights

*

3.2 Mechanical Interfaces

*

* Confidential information has been omitted and filed
separately with the Securities and Exchange Commission pursuant to a request for Confidential
Treatment. 

 

7

 

3.3 Civil Interfaces

*

Figure 1

Module Foundation Bolt Details from FCE Drawing 12-01

Preliminary, For Planning and Design. Final drawing to be issued during project data submittals

3.4 Electrical and Control Interfaces

*

3.5 Performance Specification

Table 1 summarizes the projected output from the stack module at rated load. *

Table 1

Nominal Stack Module Output at Rated Load

*

Table 2 (to be modified)

Fuel and Air Gas Flows Needed to Produce Specified DC Output

*

* Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to
a request for Confidential Treatment. 

 

2

 

Table 3

Contaminant Limits for Fuel and Air Process Streams

*

3.6 Stack Module Life

*

Table 4

Life Impacts of Stack Operation Transients

*

* Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to
a request for Confidential Treatment. 

 

3

 

APPENDIX B

Specifications for DFC® Components

C1400 Stack Module Kit Scope Specification

1.0 Introduction

This specification describes scope of supply for Direct FuelCell stack module component kits, which will be used in the assembly of C1400 stack modules.

2.0 Scope

This document describes the component kit for one C1400 module. .

3.0 Specifications

3.1 Dimensions and Weights

*

3.2 Component and subassembly listing

*

APPENDIX C

Standard Pre-Shipment Factory Test Report for DFC® Modules

*

* Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to
a request for Confidential Treatment. 

 

4

 

APPENDIX D

Standard Pre-Shipment Factory Inspection Report for DFC® Components

*

* Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for Confidential Treatment. 

 

5

 

Exhibit “D”

Conditioning Facility Design Documentation to be transferred by STTP

FCE shall transfer the following technologies, know-how and information to POSCO Power and POSCO Affiliates in
accordance with the schedule set forth in Section 3 of this STTP.

*

* Confidential information has been omitted and filed
separately with the Securities and Exchange Commission pursuant to a request for Confidential
Treatment. 

 

8

 

Attachment 1

Payment Standard for Traveling Expenses by FCE’s Personnel

1. SCOPE

The present standard shall apply to the standard for traveling expenses by officers or employees of
FuelCell Energy, Inc. (“FCE”) for the purposes of transfer of fuel cell stack module assembly
technology or construction of manufacturing plant in Korea at POSCO Power or POSCO Affiliate’s
request.

2. PAYMENT STANDARD

	 	1)	 	Transportation, food, and lodging expenses shall be paid for the traveling personnel except
for the amount
corresponding to purposes other than the affairs involving POSCO Power or POSCO Affiliate.

	 	2)	 	Transportation expenses shall mean airfare in principle, but in the event no airlines in
Korea or other reasons not permitting air travel exist, railroad, automobile, or passage
fare will be paid for the traveling personnel.

	 	3)	 	The standard payment rate for transportation expenses shall follow Schedule A.

	 	4)	 	Traveling personnel’s food and lodging expenses shall be paid by the number of days spent
for the business trip
in case of food expenses and the number of days requiring lodging in case of lodging expenses
in accordance
with Schedule B. In the case of business trip by air travel, however, lodging and food
expenses shall be paid
only in the cases requiring lodging due to events beyond one’s control.

	 	5)	 	Food and lodging expenses as specified in Schedule B shall be paid as much as the actual
expenses within the
range specified in Schedule B. Receipts or proof of expenses must be produced for the
reimbursement.

	 	6)	 	Officers shall mean the employees whose title is Vice President or higher at FCE

Schedule A: Transportation Expenses

(Unit : U$)

	 	 	 	 	 	 	 
	 	 	Airfare	 	 
	Item	 	Domestic	 	International	 	Railroad / Auto / Passage Fare
	Officer

	 	Business Class
	 	Business Class
	 	Actual Expense
	Employee

	 	Economy Class
	 	Business Class	 	 

	Note)
1)	 	In the event that no reservation for the designated class above can be made, the
designated class can be changed to higher or lower class.

Schedule B: Traveling Expenses

(Unit : U$)

	 	 	 	 	 	 	 	 	 
	Item	 	Food Expenses (Actual Expense)	 	Lodging (Actual Expenses)
	Officer
	 	Actual Expense
	 	Actual Expense 
(Standard Room)

	Employee

	 	80	 	140

	Note)	 	Food and lodging expenses for the employees shall be paid as much as the actual expenses
within the limit shown above (receipt or proof of expenses is required).

3. PAYMENT METHOD

1) Transportation expenses and traveling expenses shall be calculated in units of one month in
principle, and FCE shall
bill POSCO Power or POSCO Affiliate for the expenses, accompanied by the proof thereof (original or
copy).

 

 

 

2) “POSCO Power or POSCO Affiliate” shall write up and send to FCE the statement of payment based
on the bill sent by FCE and directly pay the corresponding amount in US dollars along with the
statement of payment by applying the first basic rate of foreign exchange (USD) as of the date the
bill is paid.

�
 Payment Date: 30 days within the date on the bill issued by FCE

‚
 Payment Method: wire transfer to a bank account designated by FCE

 

 

 

Attachment 2

Target Schedule for Technology Transfer

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	2009	 	2010	 	2011
	 	 	 	 	11	 	12	 	1	 	2	 	3	 	4	 	5	 	6	 	7	 	8	 	9	 	10	 	11	 	12	 	1	 	2	 	3
	Infrastructure	 	Factory and Facility	 	Joint Committee:

 Factory Design and
Ground-breaking	 	Factory Construction and Equipments order	 	Equipments installation
and test	 	 	 	 	 	Ceremony for the

completion	 	 	 	 	 	 	 	 
	 	Personnel	 	FCE Recommendation
of organization	 	 	1st Employment	 	 	 	 	 	 	2nd Employment	 	 	 	 	 	 	 	 	 	 
	 	System	 	 	 	 	 	 	 	 	 	 	Study of FCE process control system	 	PP system set-up for process control	 	 	 	 	 	 	 	 	 	 
	Process	 	Assembly	 	 	 	 	 	Preview of Process	 	 	 	 	 	1st OJT in Torrington	 	2nd OJT in Torrington	 	 	 	3rd OJT in Pohang	 	 	 	 	 	 
	 	Conditioning	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1st OJT in Danbury	 	 	 	 	 	2nd OJT in Pohang	 	 	 	 
	 	Teardown	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1st OJT in Pohang (or Danbury) at available module	 	 	 	 
	 	Documents	 	Documents transfer and Review	 	Translation of all tech. and education materials in Korean	 	Study of documents	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Components	 	NRC	 	Documents transfer and Review	 	Q&A in Danbury	 	FCE NRC vendor tour	 	Study of documents and tech.
transfer	 	Korea vendor Qualifying	 	 	 	Prototype Module w/ localized NRC

 

 

 

Exhibit B

October 23, 2009

Mr. R. D. Brdar

President and Chief Executive Officer

FuelCell Energy, Inc.

3 Great Pasture Road

Danbury, CT 06813

	Subject:	 	Approval of Transfer of Fuel Cell Technology

Cooperative Agreement DE-FC21-95MC31184

Gentleman:

In accordance with my delegated authority, I accept the “adequate recognition” as set forth
in your letter dated October 19, 2009 and October 23, 2009. I hereby approve your request to
transfer fuel cell technology from FuelCell Energy, Inc. (FCE) to POSCO of South Korea in
accordance with the following conditions identified. FCE will transfer fuel cell stack
assembly and conditioning know-how, as well as design drawings and data related to
“non-repeating” components of the fuel cell stack module (i.e. components other than the core
fuel cell technology). Non-repeating components include stack supporting hardware enclosures,
insulation, and piping, but exclude the core fuel cell component designs, materials, and
manufacturing processes, as well as designs and manufacturing processes related to FCE’s
proprietary direct internal reforming technology. Under the proposed new agreement, FCE would
continue to manufacture the core fuel cell units in Connecticut, and ship them to POSCO Power
in South Korea.

The Adequate Recognition consists of two parts:

a) Increase Cost Share for Phase II of the Office of Fossil Energy Coal Based Fuel Cell
Program from $5.2 million to $6.2 million (+ $1 million).

b) The increase in U. S. manufacturing of “core fuel cell components” directly related
to the increased sales outside the U. S.

This approval is provided pursuant to Cooperative Agreement DE-FC21-95MC31184 between FCE
and NETL.

	 	 	 
	 

	 	Sincerely,
	 

	 	
	 

	 	Carl O. Bauer
	 

	 	Director

	 	 	 	 	 	 	 	 	 	 	 	 	 
	626 Cochrans Mill Road, P.O. Box 10940, Pittsburgh, PA 15236

	wayne.surdoval@netl.doe.gov@netl.doe.gov
	 	•
	 	Voice (412) 386-6002
	 	•
	 	Fax (412) 386-4822
	 	•
	 	www.netl.doe.gov

 

 

EXHIBIT C (LIST OF PATENTS)

	 	 	 	 	 	 	 	 	 	 	 
	FCE File No.	 	U.S. PAT. NO.	 	TITLE	 	Country	 	Issued	 	Expires
	B429-086	 	7,494,736	 	Dielectric Frame Assembly and Fuel Cell Manifold
	 	U.S.	 	2/24/2009	 	2/25/2027
	B429-057 CIP	 	7,393,605	 	Fuel Cell End Unit with Integrated Heat Exchanger
	 	U.S.	 	7/1/2008	 	5/18/2026
	B429-051	 	7,323,270	 	Modular Fuel Cell Stack Assembly
	 	U.S.	 	1/29/2008	 	12/1/2025
	B429-083	 	7,294,427	 	Manifold Gasket Accommodating Differential
	 	U.S.	 	11/13/2007	 	7/12/2025
	 	 	 	 	Movement of Fuel Cell Stack
	 	 	 	 	 	 
	B429-085	 	7,276,304	 	Fuel Cell System Including a Unit for Electrical
	 	U.S.	 	10/2/2007	 	6/20/2025
	 	 	 	 	Isolation of a Fuel Cell Stack
From a Manifold
Assembly and Method Therefor
	 	 	 	 	 	 
	B429-057	 	7,070,874	 	Fuel Cell End Unit with Integrated Heat Exchanger
	 	U.S.	 	7/4/2006	 	12/24/2022
	B429-046	 	6,902,840	 	Fuel Cell System with Mixer/Eductor
	 	U.S.	 	6/7/2005	 	7/2/2022
	 	 	ZL03815646.6	 	 
	 	China	 	 	 	 
	 	 	4146427	 	 
	 	Japan	 	 	 	 
	B429-058	 	6,964,825	 	Compliant Manifold Gasket
	 	U.S.	 	11/15/2005	 	7/24/2023
	 	 	770810	 	 
	 	Korea	 	10/22/2007	 	 
	B429-048	 	6,887,611	 	Flexible Fuel Cell Gas Manifolds
	 	U.S.	 	5/3/2005	 	10/3/2022
	 	 	4317132	 	 
	 	Japan	 	5/29/2009	 	 
	B429-054	 	6,797,425	 	Fuel Cell Stack Compressive Loading System
	 	U.S.	 	9/28/2004	 	12/24/2022
	 	 	ZL03825719.X	 	 
	 	China	 	8/15/2007	 	 
	 	 	4153491	 	 
	 	Japan	 	7/11/2008	 	 
	 	 	1 590 846	 	 
	 	EPO	 	3/11/2009	 	 
	 	 	603 26 650.0-08	 	 
	 	Germany	 	3/11/2009	 	 
	B429-043	 	6,531,237	 	Manifold and Sealing Assembly for Fuel Cell Stack
	 	U.S.	 	3/11/2003	 	3/1/2021
	 	 	ZL02805816.X	 	 
	 	China	 	3/21/2007	 	 
	 	 	4318667	 	 
	 	India	 	5/29/2009	 	 
	B429-040	 	6,514,636	 	Ultra-Smooth Dielectric Members for Liquid
	 	U.S.	 	2/4/2003	 	12/13/2020
	 	 	 	 	Electrolyte Fuel Cells
	 	 	 	 	 	 
	 	 	ZL01820569.0	 	 
	 	China	 	2/7/2007	 	 
	 	 	216427	 	 
	 	India	 	9/19/2005	 	 
	B429-038	 	6,461,756	 	Retention System for Fuel Cell Stack Manifolds
	 	U.S.	 	10/8/2002	 	8/21/2020
	 	 	ZL01813533.1	 	 
	 	China	 	1/18/2006	 	 
	 	 	196,113	 	 
	 	India	 	9/19/2005	 	 
	 	 	3736765	 	 
	 	Japan	 	11/4/2005	 	 
	B429-035	 	6,410,161	 	Metal-Ceramic Joint Assembly
	 	U.S.	 	6/25/2002	 	4/15/2019
	B429-041	 	6,413,665	 	Fuel Cell Stack Compression System
	 	U.S.	 	7/2/2002	 	8/31/2020
	 	 	ZL01814724.0	 	 
	 	China	 	10/5/2005	 	 
	 	 	196,112	 	 
	 	India	 	9/19/2005	 	 
	40128	 	5,110,692	 	Gasket for Molten Carbonate Fuel Cell
	 	U.S.	 	5/5/1992	 	8/20/2010
	 	 	0472152	 	 
	 	EPO	 	5/24/1995	 	 
	 	 	P69109971.5	 	 
	 	Germany	 	5/24/1995	 	 

	 	 	 
	Note:	 	1. U.S. Patents and foreign counterparts (if any) are grouped together.

	 	 	
 

	 	 	
2. Expiration dates are the same for U.S. and foreign counterpart patents.

 

 

 

EXHIBIT D ( SALES TARGETS)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Business Plan	 	 	Sales Target	 	 	Cumulative	 
	Year	 	(MW)	 	 	(MW)	 	 	(MW)	 
	Pre-2011
	 	 	—	 	 	 	—	 	 	 	69.0	 
	2011
	 	 	*	 	 	 	*	 	 	 	*	 
	2012
	 	 	*	 	 	 	*	 	 	 	*	 
	2013
	 	 	*	 	 	 	*	 	 	 	112	 
	2014
	 	 	*	 	 	 	*	 	 	 	*	 
	2015
	 	 	*	 	 	 	*	 	 	 	*	 
	2016
	 	 	*	 	 	 	*	 	 	 	*	 
	2017
	 	 	*	 	 	 	*	 	 	 	*	 
	2018
	 	 	*	 	 	 	*	 	 	 	*	 
	2019
	 	 	*	 	 	 	*	 	 	 	*	 
	2020
	 	 	*	 	 	 	*	 	 	 	568	 

	 	 	 
	*	 	Confidential information has been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for Confidential Treatment.

 

 

 

SCHEDULE A (POSCO Affiliates)

POSCO Affiliates shall include the following companies:

POSCO, a Korean corporation having a place of business at 1 Goedong-dong, Nam-gu, Pohang, Kyungbuk
790-704, Korea

POSCON, a Korean corporation having a place of business at 606 Ho-dong Nam-gu, Pohang, Kyungbuk
790-719, Korea

POSMEC, a Korean corporation having a place of business at 322-4 Janghung-dong Nam-gu, Pohang,
Kyungbuk 790-714, Korea

POSCO E&C, a Korean corporation having a place of business at 568-1 Goedong-dong Nam-gu, Pohang,
Kyungbuk 790-704, Korea

POSTEEL, a Korean corporation having a place of business at 735-3 Posteel Tower Yeoksam-dong
Gangnam-gu Seoul 135-080, Korea

 

 

 

SCHEDULE B (Non-Exclusive Territory)

The Non-Exclusive Territory shall include all countries and jurisdictions, except as noted
below:

	 	 	 
	Western Europe	 	Eastern Europe
	Andorra

	 	Albania
	Austria

	 	Bulgaria
	Belgium

	 	Czech Republic
	Cyprus

	 	Slovakia
	Denmark

	 	Hungary
	Federal Republic of Germany

	 	Poland
	Finland

	 	Romania
	France

	 	All states of the former USSR
	Great Britain and including, but not limited to
	Northern Ireland CIS (Commonwealth of Independent States)
	Greece
	 	 
	Greenland

	 	Yugoslavia
	Ireland

	 	Slovenia
	Iceland

	 	Croatia
	Italy
	 	 
	Liechtenstein
	 	 
	Luxembourg

	 	Asia
	Malta

	 	Japan
	Monaco
	 	 
	Netherlands
	 	 
	Norway
	 	 
	Portugal
	 	 
	San Marino
	 	 
	Spain
	 	 
	Sweden
	 	 
	Switzerland
	 	 
	The Vatican State
	 	 
	 
	 	 
	Middle East
	 	 
	Bahrain

	 	Yemen, Arab Rep.
	Iran

	 	Yemen, Peoples Rep.
	Iraq

	 	United Arab Emirates (UAE)
	Israel
	 	 
	Jordan
	 	 
	Kuwait
	 	 
	Lebanon
	 	 
	Oman
	 	 
	Qatar
	 	 
	Saudi-Arabia
	 	 
	Syria
	 	 
	Turkey
	 	 
	 
	 	 
	North America
	 	 
	United States
	 	 
	Canada
	 	 
	Mexico
	 	 

 

 

 

SCHEDULE C (FCE Previously Granted Distribution Rights)

	 	 	 	 	 	 	 	 	 
	Distributor	 	Type of Agreement	 	Effective Date	 	Expiration	 	Rights in Korea
	BOC Limited (Linde Group)

	 	Market Development Agreement (“MDA”)
	 	11/2/2006
	 	11/1/2009
	 	Yes
	 
	 	 	 	 	 	 	 	 
	Caterpillar Inc.

	 	Purchase and Marketing Agreement
	 	4/26/2002
	 	4/25/2012
	 	Yes
	 
	 	 	 	 	 	 	 	 
	Marubeni (Japan)

	 	Alliance Agreement
	 	6/15/2001
	 	6/14/2011
	 	Rights in Korea Waived by Agreement
	 
	 	 	 	 	 	 	 	 
	MTU CFC Solution, GmbH

	 	Cell License
	 	12/15/1999
	 	12/14/2009
	 	No
	 
	 	 	 	 	 	 	 	 
	MTU CFC Solution, GmbH

	 	BOP Cross-License
	 	7/16/1998
	 	7/15/2008
	 	No
	 
	 	 	 	 	 	 	 	 
	Pfister Energy

	 	MDA
	 	6/26/08
	 	6/26/2010
	 	No
	 
	 	 	 	 	 	 	 	 
	American Wind Power & Hydrogen

	 	MDA
	 	1/2/08
	 	1/2/10
	 	No
	 
	 	 	 	 	 	 	 	 
	Enbridge

	 	MDA
	 	11/4/03
	 	10/31/10
	 	No
	 
	 	 	 	 	 	 	 	 
	Logan Energy

	 	MDA
	 	10/28/08
	 	10/27/10
	 	No
	 
	 	 	 	 	 	 	 	 
	Powerhouse Energy

	 	MDA
	 	11/1/07
	 	11/1/09
	 	No
	 
	 	 	 	 	 	 	 	 
	PPL Energy

	 	Distributor Agreement
	 	9/21/00
	 	12/31/10
	 	No
	 
	 	 	 	 	 	 	 	 
	Western Energy Marketers

	 	MDA
	 	11/8/07
	 	11/7/10
	 	No

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]