Document:

Exhibit 10.1

Exhibit 10.1

AGREEMENT

This Agreement is entered into on March 12, 2010 (the “Effective Date”) by and between
NYMAGIC, INC., a New York corporation (together with its successors and assigns, the “Company”),
and George R. Trumbull, III (the “Executive”).

W  I T N E S S E T H:

WHEREAS, the Executive is currently providing consulting services to the Company pursuant to a
Consulting Agreement dated June 9, 2009, and made effective May 21, 2009 (the “Consulting
Agreement”);

WHEREAS, in accordance with the terms of the Consulting Agreement the Executive was awarded
an option to purchase 10,000 shares of the Company’s common stock under a Stock Option Agreement
dated May 21, 2009; and,

WHEREAS, the Company desires to engage the Executive as an employee and officer of the Company
pursuant to an agreement embodying the terms of such engagement (this “Agreement”) and the
Executive desires to enter into this Agreement and to accept such engagement, subject to the terms
and provisions of this Agreement.

NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and for
other good and valuable consideration, the receipt of which is mutually acknowledged, the Company
and the Executive (each individually a “Party” and together the “Parties”) agree as follows:

1. Consulting Agreement and Stock Option Agreement.

(a) The services to be provided by the Executive to the Company under the Consulting Agreement
are hereby merged into this Agreement, and the Consulting Agreement is terminated as of the date
hereof.

(b) The Option Agreement shall remain in full force and effect.

2. Term of Engagement.

(a) The term of the Executive’s engagement under this Agreement shall commence on the
Effective Date and continue thereafter until terminated in accordance herewith (the “Term of
Engagement”).

(b) Notwithstanding anything in this Agreement to the contrary, prior to the first anniversary
of the Effective Date of this Agreement the Parties shall meet to discuss this Agreement and may
agree in writing to modify any of the terms of this Agreement.

 

 

 

3. Position, Duties and Responsibilities.

(a) Generally. During the period beginning with the Effective Date and ending on
April 2, 2010, the Executive shall serve as the Senior Executive Vice President of the Company, and
beginning on April 2, 2010 and ending upon the termination of this Agreement, the Executive shall
serve as President and Chief Executive Officer of the Company. In all such capacities, the
Executive shall report only to the Board. The Executive shall have and perform such duties,
responsibilities, and authorities as are customary for an officer in his positions at corporations
of similar size and businesses as the Company as they may exist from time to time and as are
consistent with such positions and status. The Executive shall devote reasonably sufficient time
and attention, and his best efforts, abilities, experience, and talent to the positions in which he
will serve hereunder.

(b) Other Activities. Anything herein to the contrary notwithstanding, nothing in
this Agreement shall preclude the Executive from (i) serving on the boards of directors of a
reasonable number of other corporations or the boards of a reasonable number of trade
associations and/or charitable organizations, (ii) engaging in charitable activities and
community affairs, (iii) managing his personal investments and affairs, provided that such
activities do not materially interfere with the proper performance of his duties and
responsibilities under this Agreement and (iv) performing consulting services for Mariner
Partners, Inc., or any of its successors, affiliates, stockholders or members (collectively,
“Mariner”).

4. Cash Consideration.

The Executive shall be paid at the rate of Forty-Two Thousand and 00/100 Dollars ($42,000) per
month, payable in accordance with the regular payroll practices of the Company, beginning on the
Effective Date (“Cash Compensation”).

5. Long-Term Incentive Programs.

(a) Grant of Restricted Shares. As of the Effective Date the Executive shall be
granted 20,000 Restricted Share Units pursuant to an award agreement made under the Company’s
Amended and Restated 2004 Long-Term Incentive Plan (the “LTIP”), which shall vest on the first
anniversary of the Effective Date (the “Restricted Share Unit Grant”) subject to the terms of the
LTIP and award agreement.

(b) Deferral of Compensation. The Executive shall be permitted to elect to defer
receipt, pursuant to written deferral election terms and forms (the “Deferral Election Forms”)
consistent with Section 409A of the Code, as hereinafter defined, of all or a specified portion of
his long term incentive compensation under Section 4(a).

 

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The Company and the Executive agree that compensation deferred pursuant to this Section 5(b)
shall be fully vested and nonforfeitable; however, the Executive acknowledges that his rights to
the deferred compensation provided for in this Section 5 shall be no greater than those of a
general unsecured creditor of the Company, and that such rights may not be pledged, collateralized,
encumbered, hypothecated, or liable for or subject to any lien, obligation, or liability of the
Executive, or be assignable or transferable by the Executive, otherwise than by will or the laws of
descent and distribution, provided that the Executive may designate one or more beneficiaries to
receive any payment of such amounts in the event of his death.

6. Reimbursement of Business and Other Expenses: Perquisites.

(a) The Executive is authorized to incur reasonable expenses in carrying out his duties and
responsibilities under this Agreement, and the Company shall promptly reimburse him on a monthly
basis for all such business expenses incurred in connection therewith in the prior month, subject
to documentation in accordance with the Company’s policies.

7. Termination of Engagement.

(a) With or Without Cause. The Term of Engagement may be terminated by the Company
for any reason, with or without cause.

(b) Upon the termination of the Executive’s engagement with the Company the Executive shall be
entitled to:

(i) Cash Compensation through the date of such termination;

(ii) A cash bonus, at the sole discretion of the Human Resources Committee
of the Board; and,

(iii) The elimination of any restrictions on any Restricted Share Unit Grant
or deferred stock awards outstanding at the time of his termination, at the
sole discretion of the Board.

8. Confidentiality: Cooperation with Regard to Litigation; Non-Disparagement; Return of
Company Materials.

(a) During the Term of Engagement and thereafter, the Executive shall not, without the prior
written consent of the Company, disclose to anyone (except in good faith in the ordinary course of
business to a person who will be advised by the Executive to keep such information confidential) or
make use of any Confidential Information, except in the performance of his duties hereunder or when
required to do so by legal process, by any governmental agency having supervisory authority over
the business of the Company or by any administrative or legislative body (including a committee
thereof) that requires him to divulge, disclose or make accessible such information. In the event
that the Executive is so ordered, he
shall give prompt written notice to the Company in order to allow the Company the opportunity
to object to or otherwise resist such order.

 

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(b) During the Term of Engagement and thereafter, the Executive shall not disclose the
existence or contents of this Agreement beyond what is disclosed in the proxy statement or
documents filed with the government unless and to the extent such disclosure is required by law, by
a governmental agency, or in a document required by law to be filed with a governmental agency or
in connection with enforcement of his rights under this Agreement. In the event that disclosure is
so required, the Executive shall give prompt written notice to the Company in order to allow the
Company the opportunity to object to or otherwise resist such requirement. This restriction shall
not apply to such disclosure by him to members of his immediate family, his tax, legal or financial
advisors, any lender, or tax authorities, or to potential future employees to the extent necessary,
each of whom shall be advised not to disclose such information.

(c) “Confidential Information” shall mean (i) all information concerning the business of the
Company or any Subsidiary including information relating to any of their products, product
development, trade secrets, customers, suppliers, finances, and business plans and strategies, and
(ii) information regarding the organization structure and the names, titles, status, compensation,
benefits and other proprietary engagement-related aspects of the employees of the Company and the
Company’s engagement practices. Excluded from the definition of Confidential Information is
information (A) that is or becomes part of the public domain, other than through the breach of this
Agreement by the Executive or (B) regarding the Company’s business or industry properly acquired by
the Executive in the course of his career as an Executive in the Company’s industry and independent
of the Executive’s engagement by the Company. For this purpose, information known or available
generally within the trade or industry of the Company or any Subsidiary shall be deemed to be known
or available to the public.

(d) “Subsidiary” shall mean any corporation controlled directly or indirectly by the Company.

(e) The Executive agrees to cooperate with the Company, during the Term of Engagement and
thereafter (including following the termination of the Executive’s engagement for any reason), by
making himself reasonably available to testify on behalf of the Company or any Subsidiary in any
action, suit, or proceeding, whether civil, criminal, administrative, or investigative, and to
assist the Company, or any Subsidiary, in any such action, suit, or proceeding, by providing
information and meeting and consulting with the Board or its representatives or counsel, or
representatives or counsel to the Company, or any Subsidiary as requested; provided, however that
the same does not materially interfere with his then current professional activities. The Company
agrees to reimburse the Executive on a per diem basis for all expenses actually incurred in
connection with his provision of testimony or assistance.

(f) The Executive agrees that, during the Term of Engagement and thereafter (including
following the termination of the Executive’s engagement for any reason) he will not
make statements or representations, or otherwise communicate, directly or indirectly, in
writing, orally, or otherwise, or take any action which may, directly or indirectly, disparage the
Company or any Subsidiary or their respective officers, directors, employees, advisors, businesses
or reputations. The Company agrees that, during the Term of Engagement and thereafter (including
following the termination of the Executive’s engagement for any reason) the Company will not make
statements or representations, or otherwise communicate, directly or indirectly, in writing,
orally, or otherwise, or take any action which may directly or indirectly, disparage the Executive
or his business or reputation. Notwithstanding the foregoing, nothing in this Agreement shall
preclude either the Executive or the Company from making truthful statements or disclosures that
are required by applicable law, regulation, or legal process.

 

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(g) Upon the termination of his engagement, the Executive agrees to deliver any Company
property and any documents, notes, drawings, specifications, computer software, data and other
materials of any nature pertaining to any Confidential Information that are held by the Executive
and will not take any of the foregoing, or any reproduction of any of the foregoing, that is
embodied in any tangible medium of expression, provided that the foregoing shall not prohibit the
Executive from retaining his personal phone directories and rolodexes.

9. Non-solicitation of Employees.

During the period beginning with the Effective Date and ending 12 months following the
termination of the Executive’s engagement, the Executive shall not induce employees of the Company
or any Subsidiary to terminate their employment; provided, however, that the foregoing shall not be
construed to prevent the Executive from engaging in generic nontargeted advertising for employees
generally.

10. Remedies.

In addition to whatever other rights and remedies the Company may have at equity or in law, if
the Executive breaches any of the provisions contained in Sections 8 or 9 above, the Company (a)
shall have its rights under Section 11 of this Agreement, (b) shall have the right to immediately
terminate all payments and benefits due under this Agreement and (c) shall have the right to seek
injunctive relief. The Executive acknowledges that such a breach of Sections 8 or 9 would cause
irreparable injury and that money damages would not provide an adequate remedy for the Company;
provided, however, the foregoing shall not prevent the Executive from contesting the issuance of
any such injunction on the ground that no violation or threatened violation of Sections 8 or 9 has
occurred.

11. Resolution of Disputes.

Any controversy or claim arising out of or relating to this Agreement or any breach or
asserted breach hereof or questioning the validity and binding effect hereof arising under or in
connection with this Agreement, other than seeking injunctive relief under Section 10, shall be
resolved by binding arbitration, to be held at an office closest to the Company’s
principal offices in accordance with the rules and procedures of the American Arbitration
Association, except that disputes arising under or in connection with Sections 8 and 9 above shall
be submitted to the federal or state courts in the State of New York. Judgment upon the award
rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.

 

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12. Indemnification.

(a) Company Indemnity. The Company agrees that if the Executive is made a party, or
is threatened to be made a party, to any action, suit or proceeding, whether civil, criminal,
administrative or investigative (a “Proceeding”), by reason of the fact that he is or was a
director, officer or employee of the Company or any Subsidiary or is or was serving at the request
of the Company or any Subsidiary as a director, officer, member, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise, including service with respect
to employee benefit plans, whether or not the basis of such Proceeding is the Executive’s alleged
action in an official capacity while serving as a director, officer, member, employee or agent, the
Executive shall be indemnified and held harmless by the Company to the fullest extent legally
permitted or authorized by the Company’s certificate of incorporation or bylaws or resolutions of
the Company’s Board or, if greater, by the laws of the State of New York against all cost, expense,
liability and loss (including, without limitation, attorney’s fees, judgments, fines, ERISA excise
taxes or penalties and amounts paid or to be paid in settlement) reasonably incurred or suffered by
the Executive in connection therewith, and such indemnification shall continue as to the Executive
even if he has ceased to be a director, member, officer, employee or agent of the Company or other
entity and shall inure to the benefit of the Executive’s heirs, executors and administrators. The
Company shall advance to the Executive all reasonable costs and expenses to be incurred by him in
connection with a Proceeding within 20 days after receipt by the Company of a written request for
such advance, together with such documentation as may be reasonably requested by the Company. Such
request shall include an undertaking by the Executive to repay the amount of such advance if it
shall ultimately be determined that he is not entitled to be indemnified against such costs and
expenses. The provisions of this Section 12(a) shall not be deemed exclusive of any other rights
of indemnification to which the Executive may be entitled or which may be granted to him, and it
shall be in addition to any rights of indemnification to which he may be entitled under any policy
of insurance.

(b) No Presumption Regarding Standard of Conduct. Neither the failure of the Company
(including its Board, independent legal counsel or stockholders) to have made a determination prior
to the commencement of any proceeding concerning payment of amounts claimed by the Executive under
Section 12(a) above that indemnification of the Executive is proper because he has met the
applicable standard of conduct, nor a determination by the Company (including its Board,
independent legal counsel or stockholders) that the Executive has not met such applicable standard
of conduct, shall create a presumption that the Executive has not met the applicable standard of
conduct.

(c) Liability Insurance. The Company agrees to continue and maintain a directors and
officers’ liability insurance policy covering the Executive to the extent the Company provides such
coverage for its other directors.

 

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13. Assignability: Binding Nature.

No rights or obligations of either the Executive (except as provided in Section 19, below) or
the Company under this Agreement may be assigned or transferred including without limitation, those
rights or obligations customarily assigned or transferred in connection with the merger,
consolidation, sale, or transfer of all, or substantially all of the assets, of the Company;
provided, however, that this Agreement shall be binding upon and inure to the benefit of the heirs
of the Executive and that the Executive’s rights to compensation and benefits may be transferred by
will or the laws of descent and distribution.

14. Representation.

The Company represents and warrants that it is fully authorized and empowered to enter into
this Agreement and that the performance of its obligations under this Agreement will not violate
any agreement between it and any other person, firm or organization.

15. Entire Agreement.

This Agreement contains the entire understanding and agreement between the Parties concerning
the subject matter hereof and, as of the Effective Date, supersedes all prior agreements,
understandings, discussions, negotiations and undertakings, whether written or oral, between the
Parties with respect thereto, except with respect to the specific award agreement referred to
herein.

16. Amendment or Waiver.

No provision in this Agreement may be amended unless such amendment is agreed to in writing
and signed by the Executive and an authorized officer of the Company. Except as set forth herein,
no delay or omission to exercise any right, power or remedy accruing to any Party shall impair any
such right, power or remedy or shall be construed to be a waiver of or an acquiescence to any
breach hereof. No waiver by either Party of any breach by the other Party of any condition or
provision contained in this Agreement to be performed by such other Party shall be deemed a waiver
of a similar or dissimilar condition or provision at the same or any prior or subsequent time. Any
waiver must be in writing and signed by the Executive or an authorized officer of the Company, as
the case may be.

17. Severability.

In the event that any provision or portion of this Agreement shall be determined to be invalid
or unenforceable for any reason, in whole or in part, the remaining provisions of
this Agreement shall be unaffected thereby and shall remain in full force and effect to the
fullest extent permitted by law.

 

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18. Survivorship.

The respective rights and obligations of the Parties hereunder shall survive any termination
of the Executive’s engagement to the extent necessary to the intended preservation of such rights
and obligations.

19. Beneficiaries/References.

The Executive shall be entitled, to the extent permitted under any applicable law, to select
and change a beneficiary or beneficiaries to receive any compensation or benefit payable hereunder
following the Executive’s death by giving the Company written notice thereof. In the event of the
Executive’s death or a judicial determination of his incompetence, reference in this Agreement to
the Executive shall be deemed, where appropriate, to refer to his beneficiary, estate or other
legal representative.

20. Governing Law/Jurisdiction.

This Agreement shall be governed by and construed and interpreted in accordance with the laws
of New York without reference to principles of conflict of laws. Subject to Section 11, the
Company and the Executive hereby consent to the jurisdiction of any or all of the following courts
for purposes of resolving any dispute under this Agreement: (i) the United States District Court
for the Southern District of New York or (ii) any of the courts of the State of New York. The
Company and the Executive further agree that any service of process or notice requirements in any
such proceeding shall be satisfied if the rules of such court relating thereto have been
substantially satisfied. The Company and the Executive hereby waive, to the fullest extent
permitted by applicable law, any objection which it or he may now or hereafter have to such
jurisdiction and any defense of inconvenient forum.

21. Notices.

Any notice given to a Party shall be in writing and shall be deemed to have been given when
delivered personally or sent by certified or registered mail, postage prepaid, return receipt
requested, duly addressed to the Party concerned at the address indicated below or to such changed
address as such Party may subsequently give such notice of:

If to the Company:

Paul J. Hart

General Counsel

NYMAGIC, INC.

919 Third Avenue, 10th Floor

New York, New York 10022

If to the Executive:

George R. Trumbull, III

15 Shadowbrook

West Simsbury, CT 06092

 

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22. Headings and Construction.

The headings of the sections contained in this Agreement are for convenience only and shall
not be deemed to control or affect the meaning or construction of any provision of this Agreement.

23. Counterparts.

This Agreement may be executed in two or more counterparts.

[Remainder of Page Intentionally Left Blank; Signature Page Follows]

 

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

	 	 	 	 	 
	 	NYMAGIC, INC.

 	 
	 	By:  	/s/ Paul J. Hart
 	 
	 	 	Name:  	Paul J. Hart 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	THE EXECUTIVE

 	 
	 	By:  	/s/ George R. Trumbull, III
 	 
	 	 	George R. Trumbull, III 	 

 

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Exhibit 4.1

EXECUTION COPY

 

 

PROLOGIS

as Issuer

and

U.S. BANK NATIONAL ASSOCIATION

as Trustee

TENTH SUPPLEMENTAL INDENTURE

Dated as of March 16, 2010

3.25% Convertible Senior Notes due 2015

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	Article I DEFINITIONS	 	 	2	 
	 
	 	 	 	 	 	 
	Section 1.01
	 	Relation to Base Indenture	 	 	2	 
	 
	 	 	 	 	 	 
	Section 1.02
	 	Definitions	 	 	2	 
	 
	 	 	 	 	 	 
	Article II ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF NOTES	 	 	7	 
	 
	 	 	 	 	 	 
	Section 2.01
	 	Designation and Amount	 	 	7	 
	 
	 	 	 	 	 	 
	Section 2.02
	 	Form of Notes	 	 	7	 
	 
	 	 	 	 	 	 
	Section 2.03
	 	Date and Denomination of Notes; Payments of Interest	 	 	7	 
	 
	 	 	 	 	 	 
	Section 2.04
	 	Intentionally Omitted	 	 	8	 
	 
	 	 	 	 	 	 
	Section 2.05
	 	Execution, Authentication and Delivery of Notes	 	 	8	 
	 
	 	 	 	 	 	 
	Section 2.06
	 	Exchange and Registration of Transfer of Notes; Restrictions on Transfer; Depositary	 	 	8	 
	 
	 	 	 	 	 	 
	Section 2.07
	 	Additional Notes; Repurchases	 	 	9	 
	 
	 	 	 	 	 	 
	Section 2.08
	 	No Sinking Fund	 	 	9	 
	 
	 	 	 	 	 	 
	Section 2.09
	 	Ranking	 	 	10	 
	 
	 	 	 	 	 	 
	Article III REDEMPTION	 	 	10	 
	 
	 	 	 	 	 	 
	Section 3.01
	 	Right to Redeem	 	 	10	 
	 
	 	 	 	 	 	 
	Section 3.02
	 	Selection of Notes to be Redeemed	 	 	10	 
	 
	 	 	 	 	 	 
	Section 3.03
	 	Notice of Redemption	 	 	10	 
	 
	 	 	 	 	 	 
	Article IV PARTICULAR COVENANTS OF THE COMPANY	 	 	10	 
	 
	 	 	 	 	 	 
	Section 4.01
	 	Payment of Principal and Interest	 	 	10	 
	 
	 	 	 	 	 	 
	Section 4.02
	 	Maintenance of Office or Agency for Conversion Agent	 	 	11	 
	 
	 	 	 	 	 	 
	Section 4.03
	 	Intentionally Omitted	 	 	12	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	Section 4.04
	 	Intentionally Omitted	 	 	12	 
	 
	 	 	 	 	 	 
	Section 4.05
	 	Exclusion of Certain Provisions From Base Indenture	 	 	12	 
	 
	 	 	 	 	 	 
	Article V DEFAULTS AND REMEDIES	 	 	12	 
	 
	 	 	 	 	 	 
	Section 5.01
	 	Events of Default	 	 	12	 
	 
	 	 	 	 	 	 
	Section 5.02
	 	Article Five of Base Indenture	 	 	12	 
	 
	 	 	 	 	 	 
	Article VI SUPPLEMENTAL INDENTURES	 	 	13	 
	 
	 	 	 	 	 	 
	Section 6.01
	 	Supplemental Indentures Without Consent of Noteholders	 	 	13	 
	 
	 	 	 	 	 	 
	Section 6.02
	 	Modification and Amendment with Consent of Noteholders	 	 	13	 
	 
	 	 	 	 	 	 
	Section 6.03
	 	Effect of Supplemental Indentures	 	 	13	 
	 
	 	 	 	 	 	 
	Section 6.04
	 	Article Nine of Base Indenture	 	 	13	 
	 
	 	 	 	 	 	 
	Article VII CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE	 	 	13	 
	 
	 	 	 	 	 	 
	Section 7.01
	 	Company May Consolidate, Etc. on Certain Terms	 	 	13	 
	 
	 	 	 	 	 	 
	Article VIII CONVERSION OF NOTES	 	 	13	 
	 
	 	 	 	 	 	 
	Section 8.01
	 	Conversion Privilege	 	 	13	 
	 
	 	 	 	 	 	 
	Section 8.02
	 	Conversion Procedures	 	 	15	 
	 
	 	 	 	 	 	 
	Section 8.03
	 	Reserved	 	 	18	 
	 
	 	 	 	 	 	 
	Section 8.04
	 	Adjustment of Conversion Rate	 	 	18	 
	 
	 	 	 	 	 	 
	Section 8.05
	 	Shares to be Fully Paid	 	 	26	 
	 
	 	 	 	 	 	 
	Section 8.06
	 	Effect of Reclassification, Consolidation, Merger or Sale	 	 	26	 
	 
	 	 	 	 	 	 
	Section 8.07
	 	Certain Covenants	 	 	27	 
	 
	 	 	 	 	 	 
	Section 8.08
	 	Responsibility of Trustee	 	 	27	 
	 
	 	 	 	 	 	 
	Section 8.09
	 	Notice to Holders Prior to Certain Actions	 	 	28	 
	 
	 	 	 	 	 	 
	Section 8.10
	 	Shareholder Rights Plans	 	 	29	 
	 
	 	 	 	 	 	 
	Section 8.11
	 	Ownership Limit	 	 	29	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	Article IX REPURCHASE OF NOTES AT OPTION OF HOLDERS	 	 	29	 
	 
	 	 	 	 	 	 
	Section 9.01
	 	Intentionally Omitted	 	 	29	 
	 
	 	 	 	 	 	 
	Section 9.02
	 	Repurchase at Option of Holders Upon a Fundamental Change	 	 	29	 
	 
	 	 	 	 	 	 
	Article X MISCELLANEOUS PROVISIONS	 	 	33	 
	 
	 	 	 	 	 	 
	Section 10.01
	 	Ratification of Base Indenture	 	 	33	 
	 
	 	 	 	 	 	 
	Section 10.02
	 	Provisions Binding on Company’s Successors	 	 	33	 
	 
	 	 	 	 	 	 
	Section 10.03
	 	Official Acts by Successor Corporation	 	 	33	 
	 
	 	 	 	 	 	 
	Section 10.04
	 	Addresses for Notices, Etc.	 	 	33	 
	 
	 	 	 	 	 	 
	Section 10.05
	 	Governing Law	 	 	33	 
	 
	 	 	 	 	 	 
	Section 10.06
	 	Non-Business Day	 	 	34	 
	 
	 	 	 	 	 	 
	Section 10.07
	 	Benefits of Indenture	 	 	34	 
	 
	 	 	 	 	 	 
	Section 10.08
	 	Table of Contents, Headings, Etc.	 	 	34	 
	 
	 	 	 	 	 	 
	Section 10.09
	 	Execution in Counterparts	 	 	34	 
	 
	 	 	 	 	 	 
	Section 10.10
	 	Trustee	 	 	34	 
	 
	 	 	 	 	 	 
	Section 10.11
	 	Further Instruments and Acts	 	 	34	 
	 
	 	 	 	 	 	 
	Section 10.12
	 	Waiver of Jury Trial	 	 	34	 
	 
	 	 	 	 	 	 
	Section 10.13
	 	Force Majeure	 	 	34	 

iii

 

TENTH SUPPLEMENTAL INDENTURE

3.25% Convertible Senior Notes due 2015

THIS TENTH SUPPLEMENTAL INDENTURE, dated as of March 16, 2010 (this “Tenth Supplemental
Indenture”), by and between PROLOGIS (formerly ProLogis Trust and prior thereto Security Capital
Industrial Trust), a real estate investment trust organized under the laws of the State of Maryland
having its principal office at 4545 Airport Way, Denver, Colorado 80239 (the “Company”), and U.S.
BANK NATIONAL ASSOCIATION (as successor in interest to State Street Bank and Trust Company), having
a corporate trust office at Corporate Trust Services, 100 Wall Street, Suite 1600, New York, New
York 10005, as successor Trustee (in such capacity, the “Trustee”) under the Base Indenture
(defined below).

RECITALS OF THE COMPANY:

          The Company and the Trustee have heretofore entered into an Indenture dated as of March 1,
1995, as amended by a First Supplemental Indenture dated as of February 9, 2005, a Second
Supplemental Indenture dated as of November 2, 2005, a Third Supplemental Indenture, dated as of
November 2, 2005, a Fourth Supplemental Indenture dated as of March 26, 2007, a Fifth Supplemental
Indenture dated as of November 8, 2007, a Sixth Supplemental Indenture, dated as of May 7, 2008, a
Seventh Supplemental Indenture, dated as of May 7, 2008, an Eighth Supplemental Indenture, dated
August 14, 2009, and a Ninth Supplemental Indenture, dated as of October, 1, 2009 (as so
supplemented hereinafter called the “Base Indenture”), between the Company and the Trustee,
providing for the issuance by the Company from time to time of its senior debt securities
evidencing its unsubordinated indebtedness (the “Securities”).

          Section 301 of the Base Indenture provides for various matters with respect to any series of
Securities issued under the Base Indenture to be established in an indenture supplemental to the
Base Indenture.

          Section 901(7) of the Base Indenture provides for the Company and the Trustee to enter into an
indenture supplemental to the Base Indenture to establish the form or terms of Securities of any
series as provided by Sections 201 and 301 of the Base Indenture without the consent of the Holders
of any Securities.

          WHEREAS, for its lawful corporate purposes, the Company has duly authorized the issue of its
3.25% Convertible Senior Notes due 2015 (hereinafter referred to as the “Notes”), initially in an
aggregate principal amount not to exceed $460,000,000, and in order to provide the terms and
conditions upon which the Notes are to be authenticated, issued and delivered, the Board of
Trustees of the Company has duly authorized the execution and delivery of this Tenth Supplemental
Indenture; and

          WHEREAS, the Notes, the certificate of authentication to be borne by the Notes, a form of
assignment, a form of the Fundamental Change Repurchase Notice, a form of conversion notice and
certificate of transfer to be borne by the Notes are to be substantially in the forms hereinafter
provided for; and

 

 

          All things necessary to make the Base Indenture, as hereby modified, a valid agreement of the
Company, in accordance with its terms, have been done.

          NOW THEREFORE, THIS TENTH SUPPLEMENTAL INDENTURE WITNESSETH:

          For and in consideration of the premises and of the covenants contained herein and in the Base
Indenture, the Company and the Trustee covenant and agree, for the equal and proportionate benefit
of all Holders of the Notes issued on or after the date of this Tenth Supplemental Indenture, as
follows:

ARTICLE I

DEFINITIONS

          Section 1.01 Relation to Base Indenture. This Tenth Supplemental Indenture constitutes an
integral part of the Base Indenture.

          Section 1.02 Definitions. For all purposes of this Tenth Supplemental Indenture, except as
otherwise expressly provided for or unless the context otherwise requires:

               (a) Capitalized terms used but not defined herein shall have the respective meanings assigned
to them in the Base Indenture;

               (b) Terms defined both herein and in the Base Indenture shall have the meanings assigned to
them herein;

               (c) All references herein to Articles and Sections, unless otherwise specified, refer to the
corresponding Articles and Sections of this Tenth Supplemental Indenture; and

               (d) All other terms used in this Tenth Supplemental Indenture, which are defined in the Trust
Indenture Act or which are by reference therein defined in the Securities Act (except as herein
otherwise expressly provided or unless the context otherwise requires) shall have the meanings
assigned to such terms in said Trust Indenture Act and in said Securities Act as in force at the
date of the execution of this Tenth Supplemental Indenture. The words “herein,” “hereof,”
“hereunder,” and words of similar import refer to this Tenth Supplemental Indenture as a whole and
not to any particular Article, Section or other subdivision. The terms defined in this Article
include the plural as well as the singular.

          “Additional Shares” shall have the meaning specified in Section 8.01(g).

          “Business Day” means any day, other than a Saturday or Sunday, or legal holidays on which
banks in The City of New York or The City of Boston are not required or authorized by law or
executive order to be closed.

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

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          “Change of Control” shall be deemed to occur upon the consummation of any transaction or event
(whether by means of an exchange offer, liquidation, tender offer, consolidation, merger,
combination, reclassification, recapitalization or otherwise) in connection with which more than
50% of the Common Shares are exchanged for, converted into, acquired for or constitutes solely the
right to receive, consideration which is not at least 90% common stock (or American Depositary
Shares representing shares of common stock) that is: (a) listed on, or immediately after the
consummation of such transaction or event, will be listed on, a United States national securities
exchange or (b) approved, or immediately after such transaction or event will be approved, for
listing or quotation on any United States system of automated dissemination of quotations of
securities prices.

          “Common Shares” means, subject to Section 8.06, common shares of beneficial interest of the
Company, par value $0.01 per share, at the date of this Tenth Supplemental Indenture or shares of
any class or classes resulting from any reclassification or reclassifications thereof and that have
no preference in respect of dividends or of amounts payable in the event of any voluntary or
involuntary liquidation, dissolution or winding up of the Company and that are not subject to
redemption by the Company; provided that if at any time there shall be more than one such resulting
class, the shares of each such class then so issuable shall be substantially in the proportion
which the total number of shares of such class resulting from all such reclassifications bears to
the total number of shares of all such classes resulting from all such reclassifications.

          “Company” means ProLogis, a Maryland real estate investment trust, and subject to the
provisions of Article VII, shall include its successors and assigns.

          “Conversion Agent” shall mean the Trustee or any successor office or agency where the Notes
may be surrendered for exchange.

          “Conversion Date” shall have the meaning specified in Section 8.02(c).

          “Conversion Obligation” shall have the meaning specified in Section 8.01(a).

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

          “Conversion Rate” shall have the meaning specified in Section 8.01(a).

          “Debt Instrument ” means any bond, debenture, note, mortgage, indenture (including the
Indenture) or other instrument.

          “Depositary” means, with respect to the Notes issuable or issued in whole or in part in global
form, the person specified in the Base Indenture as the Depositary with respect to such Notes,
until a successor shall have been appointed and become such pursuant to the applicable provisions
of this Tenth Supplemental Indenture, and thereafter, “Depositary” shall mean or include such
successor.

          “Distributed Property” shall have the meaning specified in Section 8.04(c).

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          “Dividend Threshold Amount” shall have the meaning specified in Section 8.04(d).

          “Effective Date” shall have the meaning specified in Section 8.01(g)(1).

          “Event of Default” means, with respect to the Notes, any event specified in Section 5.01,
continued for the period of time, if any, and after the giving of notice, if any, therein
designated.

          “Ex-Date” means, with respect to any issuance or distribution on the Common Shares or any
other equity security, the first date on which the shares of Common Shares or such other equity
security trade on the applicable exchange or in the applicable market, regular way, without the
right to receive such issuance or distribution.

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

          “Fundamental Change” means a Change of Control or a Termination of Trading.

          “Fundamental Change Company Notice” shall have the meaning specified in Section 9.02(b).

          “Fundamental Change Repurchase Date” shall have the meaning specified in Section 9.02(a).

          “Fundamental Change Repurchase Notice” shall have the meaning specified in Section 9.02(a)(i).

          “Fundamental Change Repurchase Price” shall have the meaning specified in Section 9.02(a).

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

          “interest” means, when used with reference to the Notes, any interest payable under the terms
of the Notes.

          “Interest Payment Date” means March 15 and September 15 of each year, beginning on September
15, 2010.

          “Last Reported Sale Price” means, with respect to the Common Shares or any other security for
which a Last Reported Sale Price must be determined, on any date, the closing sale price per share
of the Common Shares or unit of such other security (or, if no closing sale price is reported, the
average of the last bid and last ask prices or, if more than one in either case, the average of the
average last bid and the average last ask prices) on such date as reported in composite
transactions for the principal U.S. securities exchange on which the Common Shares or such other
security are traded. If the Common Shares or such other security are not listed for trading on a
United States national or regional securities exchange on the relevant date, the Last

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Reported Sale Price shall be the last quoted bid price per share of Common Shares or such other
security in the over-the-counter market on the relevant date, as reported by the National Quotation
Bureau or similar organization. If the Common Shares or such other security are not so quoted, the
Last Reported Sale Price shall be the average of the mid-point of the last bid and ask prices for
the Common Shares or such other security on the relevant date from each of at least three
nationally recognized independent investment banking firms selected from time to time by the Board
of Trustees of the Company for that purpose. The Last Reported Sale Price shall be determined
without reference to extended or after hours trading.

          “Market Disruption Event” means the occurrence or existence for more than a one-half hour
period in the aggregate on any scheduled Trading Day for the Common Shares of any suspension or
limitation imposed on trading (by reason of movements in price exceeding limits permitted by the
stock exchange or otherwise) in the Common Shares or in any options, contracts or future contracts
relating to the Common Shares, and such suspension or limitation occurs or exists at any time
before 1:00 p.m. (New York City time) on such day.

          “Maturity Date” means March 15, 2015.

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

          “Notice of Conversion” shall have the meaning specified in Section 8.02(c).

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

          “Predecessor Note” of any particular Note means every previous Note evidencing all or a
portion of the same debt as that evidenced by such particular Note; and, for the purposes of this
definition, any Note authenticated and delivered under Section 306 of the Base Indenture in lieu of
a lost, destroyed or stolen Note shall be deemed to evidence the same debt as the lost, destroyed
or stolen Note that it replaces.

          “Record Date,” with respect to the payment of interest on any Interest Payment Date, shall
have the meaning specified in Section 2.03.

          “Reference Property” shall have the meaning specified in Section 8.06(b).

          “Reorganization Event” shall have the meaning specified in Section 8.06.

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

          “Spin-Off” shall have the meaning specified in Section 8.04(c).

          “Stock Price” means the price paid per Common Share in connection with a Fundamental Change
pursuant to which Additional Shares shall be added to the Conversion Rate as set forth in Section
8.01(g) hereof, which shall be equal to (i) if holders of Common Shares receive only cash in such
Fundamental Change, the cash amount paid per Common Share and

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(ii) in all other cases, the average of the Last Reported Sale Prices of the Common Shares over the
five consecutive Trading Day period ending on the Trading Day preceding the Effective Date of the
Fundamental Change.

          “Termination of Trading” shall be deemed to occur if Common Shares, or any Common Shares (or
American Depositary Receipts in respect of Common Shares) into which the Notes are convertible
pursuant to the terms of this Tenth Supplemental Indenture, are not listed for trading on any of
the New York Stock Exchange, the NASDAQ Global Market or the NASDAQ Global Select Market (or any of
their respective successors).

          “Trading Day” means a day during which (i) trading in Common Shares generally occurs, (ii)
there is no Market Disruption Event and (iii) a Last Reported Sale Price for Common Shares (other
than a Last Reported Sale Price referred to in the next to last sentence of such definition) is
available for such day; provided that if the Common Shares are not admitted for trading or
quotation on or by any exchange, bureau or other organization referred to in the definition of Last
Reported Sale Price (excluding the next to last sentence of that definition), Trading Date shall
mean any Business Day.

          “Trigger Event” shall have the meaning specified in Section 8.04(c).

          “Underwriters” means Citigroup Global Markets Inc., Barclays Capital Inc., Deutsche Bank
Securities Inc., J.P. Morgan Securities Inc., Morgan Stanley & Co. Incorporated, RBC Capital
Markets Corporation, Daiwa Securities America Inc., ING Financial Markets LLC, Mitsubishi UFJ
Securities (USA), Inc., Scotia Capital (USA) Inc. and Credit Agricole Securities (USA) Inc.

          “Underwriting Agreement” means that certain Underwriting Agreement relating to the Notes,
dated March 9, 2010, between the Company and the Underwriters.

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ARTICLE II

ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF NOTES

          Section 2.01 Designation and Amount. The Notes shall be designated as the “3.25% Convertible
Senior Notes due 2015.” The aggregate principal amount of Notes that may be authenticated and
delivered under this Tenth Supplemental Indenture is initially limited to $460,000,000, subject to
Section 2.07 and except for Notes authenticated and delivered upon registration or transfer of, or
in exchange for, or in lieu of other Notes pursuant to Section 2.06, Section 8.02 and Section 9.02
hereof and Section 306 and Section 906 of to the Base Indenture.

          Section 2.02 Form of Notes. The Notes and the Trustee’s certificate of authentication to be
borne by such Notes shall be substantially in the form set forth in Exhibit A.

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

          A Global Note shall represent such principal amount of the Outstanding Notes as shall be
specified therein and shall provide that it shall represent the aggregate principal amount of
Outstanding Notes from time to time endorsed thereon and that the aggregate principal amount of
Outstanding Notes represented thereby may from time to time be increased or reduced to reflect
repurchases, conversions, transfers or exchanges permitted hereby. Any endorsement of a Global
Note to reflect the amount of any increase or decrease in the amount of Outstanding Notes
represented thereby shall be made by the Trustee or the Custodian, at the direction of the Trustee,
in such manner and upon instructions given by the Holder of such Notes in accordance with this
Tenth Supplemental Indenture. Payment of principal and accrued and unpaid interest on a Global
Note shall be made to the Holder of such Note on the date of payment, unless a Record Date or other
means of determining Holders eligible to receive payment is provided for herein.

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

          Section 2.03 Date and Denomination of Notes; Payments of Interest. The Notes shall be
issuable in registered form without coupons in denominations of $1,000 principal amount and
integral multiples thereof. Each Note shall be dated the date of its authentication and shall bear
interest from the date specified on the face of the form of Note attached as

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

          The Person in whose name any Note (or its Predecessor Note) is registered on the Security
Register at the close of business on any Record Date with respect to any Interest Payment Date
shall be entitled to receive the interest payable on such Interest Payment Date. Interest shall be
payable at the office of the Company maintained by the Company for such purposes in the Borough of
Manhattan, City of New York, which shall initially be an office or agency of the Trustee. The
Company shall pay interest (i) on any Notes in certificated form by check mailed to the address of
the Person entitled thereto as it appears in the Security Register (or upon written application by
such Person to the Security Registrar not later than the relevant record date, by wire transfer in
immediately available funds to such Person’s account within the United States, if such Person is
entitled to interest on an aggregate principal in excess of $1,000,000) or (ii) on any Global Note
by wire transfer of immediately available funds to the account of the Depositary or its nominee.
The term “Record Date” with respect to any Interest Payment Date shall mean the March 1 or
September 1 preceding the applicable March 15 or September 15 Interest Payment Date, respectively.

          Section 2.04 Intentionally Omitted.

          Section 2.05 Execution, Authentication and Delivery of Notes. Section 303 of the Base
Indenture shall be applicable to the Notes.

          Section 2.06 Exchange and Registration of Transfer of Notes; Restrictions on Transfer;
Depositary.

               (a) The Company shall provide for the registration of the Notes and of transfers of the Notes
in the Security Register. Upon surrender for registration of transfer of any Note to the Security
Registrar or any co-registrar, and satisfaction of the requirements for such transfer set forth in
this Section 2.06, the Company shall execute, and the Trustee shall authenticate and deliver, in
the name of the designated transferee or transferees, one or more new Notes of any authorized
denominations and of a like aggregate principal amount.

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

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

          No service charge shall be charged to the Noteholder for any exchange or registration of
transfer of Notes, but the Company or the Trustee may require payment of a sum

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sufficient to cover any tax, assessments or other governmental charges that may be imposed in
connection therewith.

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

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

               (b) Intentionally Omitted.

               (c) Intentionally Omitted.

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

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

          Section 2.07 Additional Notes; Repurchases. The Company may, without the consent of the
Noteholders and notwithstanding Section 2.01, issue additional Notes hereunder with the same terms
and with the same CUSIP number as the Notes initially issued hereunder in an unlimited aggregate
principal amount, which will form the same series with the Notes initially issued hereunder,
provided that no such additional Notes may be issued unless fungible with the Notes initially
issued hereunder for U.S. federal income tax purposes. The Company may also from time to time
repurchase the Notes in open market purchases by tender at any price or by private agreement
without prior notice to Noteholders.

          Section 2.08 No Sinking Fund. The provisions of Article Twelve of the Base Indenture shall
not be applicable to the Notes. No sinking fund is provided for the Notes.

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          Section 2.09 Ranking. The Notes constitute a senior general obligation of the Company,
ranking equally with other existing and future senior and unsubordinated indebtedness of the
Company and ranking senior in right of payment to any future indebtedness of the Company that is
expressly made subordinate to the Notes by the terms of such indebtedness.

ARTICLE III

REDEMPTION 

          Section 3.01 Right to Redeem.

               (a) Notwithstanding any provision of the Base Indenture, as
modified by this Tenth Supplemental Indenture, to the contrary, the Company may redeem the Notes
prior to March 15, 2015, in whole, in order to preserve the Company’s status as a real estate
investment trust under the Code.

               (b) Intentionally Omitted.

               (c) Any redemption of Notes shall be at a Redemption Price equal to 100% of the principal
amount of the Notes being redeemed, plus accrued and unpaid interest; provided, however, that the
Company may deduct and withhold from such Redemption Price any amount required to be deducted and
withheld under applicable law.

          Section 3.02 Selection of Notes to be Redeemed.

               (a) The provisions of Section 1103 of the Base Indenture shall govern the selection of Notes
to be redeemed by the Trustee.

          Section 3.03 Notice of Redemption. The provisions of Section 1104 of the Base Indenture
shall govern notices of redemption of the Notes; provided, however, that in addition to the
information specified in Section 1104 of the Base Indenture, notices of redemption of the Notes
shall also state:

               (a) the then-current Conversion Price;

               (b) the name and address of the Conversion Agent; and

               (c) that Holders who wish to convert Notes must surrender such Notes for conversion no later
than the close of business on the second Business Day immediately preceding the Redemption Date and
must satisfy the other requirements set forth herein.

ARTICLE IV

PARTICULAR COVENANTS OF THE COMPANY 

          Section 4.01 Payment of Principal and Interest.

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               (a) Sections 307 and 1001 of the Base Indenture shall apply to the Notes; provided, however,
that, with respect to any Noteholder with an aggregate principal amount in excess of $1,000,000, at
the application of such Holder in writing to the Security Registrar not later than the relevant
record date, accrued and unpaid interest on such Holder’s Notes shall be paid by wire transfer in
immediately available funds to such Holder’s account in the United States supplied by such Holder
from time to time to the Trustee and Paying Agent (if different from Trustee); provided further
that payment of accrued and unpaid interest made to the Depositary shall be paid by wire transfer
in immediately available funds in accordance with such wire transfer instructions and other
procedures provided by the Depositary from time to time.

               (b) Except as otherwise provided in this Section 4.01(b), a Holder of any Notes at the close
of business on a Record Date shall be entitled to receive interest on such Notes on the
corresponding Interest Payment Date. A Holder of any Notes as of a Record Date that are converted
after the close of business on such Record Date and prior to the opening of business on the
corresponding Interest Payment Date shall be entitled to receive interest on the principal amount
of such Notes, notwithstanding the conversion of such Notes prior to such Interest Payment Date.
However, a Holder that surrenders any Notes for conversion between the close of business on a
Record Date and the opening of business on the corresponding Interest Payment Date shall be
required to pay the Company an amount equal to the interest payable by the Company with respect to
such Notes on such Interest Payment Date at the time such Holder surrenders such Notes for
conversion, provided, however, that this sentence shall not apply to a Holder that converts Notes:

               (i) in respect of which the Company has given notice of redemption pursuant to Section
3.03 on a Redemption Date that is after the relevant Record Date and on or prior to the
relevant Interest Payment Date; or

               (ii) to the extent of any overdue interest, if any overdue interest exists at the time
of conversion with respect to such Notes;

               (iii) in connection with a Fundamental Change in which the Company has specified a
Fundamental Change Repurchase Date that is after a Record Date and on or prior to the next
Interest Payment Date; or

               (iv) after 5:00 p.m., New York City time on the Record Date immediately preceding the
Maturity Date.

Accordingly, a Holder that converts Notes under any of the circumstances described in clauses (i),
(ii), (iii) or (iv) above will not be required to pay to the Company an amount equal to the
interest payable by the Company with respect to such Notes on the relevant Interest Payment Date.

          Section 4.02 Maintenance of Office or Agency for Conversion Agent. If at any time the
Conversion Agent is not the Trustee or an office or agency designated or appointed by the Trustee,
the Company will give prompt written notice to the Trustee of the location of such Conversion
Agent. If at any time the Company shall fail to maintain an office or agency for the Conversion
Agent, presentations, surrenders, notices and demands related to conversions of

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Notes may be made or served at the Corporate Trust Office or the office or agency of the Trustee in
the Borough of Manhattan, the City of New York.

          Section 4.03 Intentionally Omitted.

          Section 4.04 Intentionally Omitted.

          Section 4.05 Exclusion of Certain Provisions From Base Indenture. Section 1004, Section 1006,
Section 1007 and Section 1011 of the Base Indenture shall not apply to the Notes. Section 1002,
Section 1003, Section 1005, Section 1008, Section 1009 (as amended by Section 2.2 of the Second
Supplemental Indenture to the Base Indenture), Section 1010 and Section 1012 of the Base Indenture
shall be applicable to the Notes.

ARTICLE V

DEFAULTS AND REMEDIES

          Section 5.01 Events of Default. The provisions of Section 501(2) and Section 501(3) of the
Base Indenture shall not be applicable to the Notes. As contemplated under Section 301 and Section
501(9) of the Base Indenture, the following events, in addition to the events described in clauses
(1), (4), (5) (as amended by the Ninth Supplemental Indenture to the Base Indenture), (6) (as
amended by the Ninth Supplemental Indenture to the Base Indenture), (7) and (8) of Section 501 of
the Base Indenture, shall be Events of Default with respect to the Notes:

               (a) default in the payment of principal or premium, if any, of any Note when due and payable
on the Maturity Date, upon redemption, repurchase, declaration or otherwise;

               (b) failure by the Company to comply with its obligation to convert the Notes into Common
Shares upon exercise of a Holder’s conversion right, and such failure continues for a period of 10
days; or

               (c) failure by the Company to issue a Fundamental Change Company Notice in accordance with
Section 9.02 when due, and such failure continues for a period of two days.

          Section 5.02 Article Five of Base Indenture. Except as amended by Section 5.01 hereof, all of
the provisions of Article Five of the Base Indenture shall be applicable to the Notes.

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ARTICLE VI

SUPPLEMENTAL INDENTURES

          Section 6.01 Supplemental Indentures Without Consent of Noteholders. The provisions of
Section 901 of the Base Indenture shall be applicable to the Notes.

          Section 6.02 Modification and Amendment with Consent of Noteholders. Section 902 of the Base
Indenture shall be applicable to the Notes. As contemplated by Sections 301 and 902 of the Base
Indenture, no supplemental indenture shall, without the consent of the Holder of each Outstanding
Note affected thereby:

               (a) make any change that adversely affects the conversion rights of any Notes;

               (b) reduce the Fundamental Change Repurchase Price or Redemption Price of any Note, or amend
or modify in any manner adverse to Noteholders the Company’s obligation to make such payments or
Article III or Article IX of this Tenth Supplemental Indenture, whether through an amendment or
waiver of provisions in the covenants, definitions or otherwise.

          Section 6.03 Effect of Supplemental Indentures. Upon the execution of any supplemental
indenture under this Article, the Base Indenture and this Tenth Supplemental Indenture shall be
modified in accordance therewith, and such supplemental indenture shall form a part of this Tenth
Supplemental Indenture for all purposes; and every Holder of Notes theretofore or thereafter
authenticated and delivered hereunder and of any coupon appertaining thereto shall be bound
thereby.

          Section 6.04 Article Nine of Base Indenture. Except as amended by this Article VI, all of the
provisions of Article Nine of the Base Indenture shall be applicable to the Notes.

ARTICLE VII

CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

          Section 7.01 Company May Consolidate, Etc. on Certain Terms. Article Eight of the Base
Indenture shall be applicable to the Notes.

ARTICLE VIII

CONVERSION OF NOTES 

          Section 8.01 Conversion Privilege.

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               (a) Subject to the conditions described in Section 8.11 hereof, and upon compliance with the
provisions of this Article VIII, a Holder of Notes shall have the right, at such Holder’s option,
to convert all or any portion (if the portion to be converted is $1,000 principal amount or an
integral multiple thereof) of such Note at any time prior to the close of business on the scheduled
Trading Day immediately preceding the Maturity Date at a rate (the “Conversion Rate”) of 57.8503
Common Shares (subject to adjustment by the Company as provided in Section 8.04) per $1,000
principal amount of Notes (the “Conversion Obligation”) under the circumstances and during the
periods set forth below.

               (b) Intentionally Omitted.

               (c) Intentionally Omitted.

               (d) In the event that the Company has delivered a notice of redemption in accordance with
Section 1104 of the Base Indenture and Section 3.03 of this Tenth Supplemental Indenture to the
Holders of Notes, a Holder of Notes may convert Notes at any time prior to the close of business on
the second Business Day immediately preceding the corresponding Redemption Date; provided, however,
that a Holder who has already delivered a Fundamental Change Repurchase Notice with respect to a
Note may not convert such Note until the Holder has withdrawn the Fundamental Change Repurchase
Notice in accordance with the terms of the Note and this Tenth Supplemental Indenture.

               (e) Intentionally Omitted.

               (f) Intentionally Omitted.

               (g) (1) If a Noteholder elects to convert Notes in connection with a Fundamental Change, the
Conversion Rate applicable to each $1,000 principal amount of Notes so converted shall be increased
by an additional number of Common Shares (the “Additional Shares”) as described below. Settlement
of Notes tendered for conversion to which Additional Shares shall be added to the Conversion Rate
as provided in this subsection shall be settled pursuant to Section 8.02 below, as applicable. For
purposes of this Section 8.01(g), a conversion shall be deemed to be “in connection with” a
Fundamental Change to the extent that the related conversion notice is delivered during the time
period beginning on the 30th Trading Day prior to the anticipated Effective Date of such
Fundamental Change and ending on the related Fundamental Change Repurchase Date, inclusive. Such
conversion notice shall indicate that the Holder of Notes has elected to convert Notes in
connection with a Fundamental Change; provided, however, that the failure to so indicate shall not
in any way affect the Conversion Obligation or the right of such Holder to receive Additional
Shares in connection with such conversion. The Company shall give notice to all record Noteholders
and the Trustee and issue a press release of the Fundamental Change no later than 30 scheduled
Trading Days prior to the anticipated effective date of the Fundamental Change.

               (i) The number of Additional Shares by which the Conversion Rate will be increased
shall be determined by reference to the table attached as Schedule A hereto, based on the
date on which the Fundamental Change occurs or becomes effective (the “Effective Date”), and
the Stock Price; provided, that if the Stock Price is

14

 

between two Stock Price amounts in the table or the Effective Date is between two Effective
Dates in the table, the number of Additional Shares shall be determined by a straight-line
interpolation between the number of Additional Shares set forth for the next higher and next
lower Stock Price amounts and the two nearest Effective Dates, as applicable, based on a
365-day year; provided further that if (1) the Stock Price is greater than $40.00 per Common
Share (subject to adjustment in the same manner as set forth in Section 8.04), no Additional
Shares will be added to the Conversion Rate, and (2) the Stock Price is less than $13.40 per
Common Share (subject to adjustment in the same manner as set forth in Section 8.04), no
Additional Shares will be added to the Conversion Rate. Notwithstanding the foregoing, in no
event will the total number of Common Shares issuable upon conversion exceed 74.6268 per
$1,000 principal amount of Notes (subject to adjustment in the same manner as set forth in
clauses (a), (b) and (c) of Section 8.04).

               (ii) The Stock Prices set forth in the first row of the table in Schedule A hereto
shall be adjusted as of any date on which the Conversion Rate of the Notes is adjusted. The
adjusted Stock Prices shall equal the Stock Prices applicable immediately prior to such
adjustment, multiplied by a fraction, the numerator of which is the Conversion Rate in
effect 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
within the table shall be adjusted in the same manner as the Conversion Rate as set forth in
Section 8.04 (other than by operation of an adjustment to the Conversion Rate by adding
Additional Shares).

          Section 8.02 Conversion Procedures.

               (a) (1) The Company shall settle its Conversion Obligations entirely in Common Shares. In
satisfying its Conversion Obligations, the Company shall deliver a number of Common Shares equal to
(i) the aggregate principal amount of Notes to be converted divided by $1,000, multiplied by (ii)
the applicable Conversion Rate (which shall include any increases to reflect any Additional Shares
that such Holder is entitled to receive pursuant to Section 8.01(g) above). The Company shall
deliver such Common Shares, together with any cash in lieu of fractional Common Shares as set forth
pursuant to clause (k) below, on the third Business Day immediately following the applicable
Conversion Date. Notwithstanding the preceding sentence, if any calculation required in order to
determine the number of Common Shares to be delivered by the Company in respect of a particular
conversion is based upon data that will not be available to the Company on the applicable
Conversion Date, the Company shall be entitled to delay settlement of that conversion until the
third Business Day after the relevant data become available.

               (b) Intentionally Omitted.

               (c) Before any Holder of a Note shall be entitled to convert the same as set forth above, such
Holder shall (1) in the case of a Global Note, comply with the procedures of the Depositary in
effect at that time and, if required, pay funds equal to interest payable on the next Interest
Payment Date to which such Holder is not entitled as set forth in Section 4.01(b) and Section
8.02(i) and, if required, pay all taxes or duties, if any, and (2) in the case of a Note

15

 

issued in certificated form, (A) complete and manually sign and deliver an irrevocable written
notice to the Conversion Agent in the form on the reverse of such certificated Note (or a facsimile
thereof) (a “Notice of Conversion”) at the office of the Conversion Agent and shall state in
writing therein the principal amount of Notes to be converted and the name or names (with
addresses) in which such Holder wishes the certificate or certificates for any Common Shares to be
delivered upon settlement of the Conversion Obligation to be registered, (B) surrender such Notes,
duly endorsed to the Company or in blank (and accompanied by appropriate endorsement and transfer
documents), at the office of the Conversion Agent, (C) if required, pay funds equal to interest
payable on the next Interest Payment Date to which such Holder is not entitled as set forth in
Section 4.01(b) and Section 8.02(i), and (D) if required, pay all taxes or duties, if any. A Note
shall be deemed to have been converted immediately prior to the close of business on the date (the
“Conversion Date”) that the Holder has complied with the requirements set forth in this Section
8.02(c).

          No Notice of Conversion with respect to any Notes may be tendered by a Holder thereof if such
Holder has also tendered a Fundamental Change Repurchase Notice and not validly withdrawn such
Fundamental Change Repurchase Notice in accordance with the applicable provisions of Section 9.02.

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

               (d) Delivery of the amounts owing in satisfaction of the Conversion Obligation shall be made
by the Company in no event later than the date specified in Section 8.02(a). The Company shall
make such delivery by issuing, or causing to be issued, and delivering to the Conversion Agent or
to such Holder, or such Holder’s nominee or nominees, certificates or a book-entry transfer through
the Depositary for the number of full Common Shares to which such Holder shall be entitled as part
of such Conversion Obligation (together with any cash in lieu of fractional shares).

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

               (f) If a Holder submits a Note for conversion, the Company shall pay all stamp and other
duties, if any, which may be imposed by the United States or any political subdivision thereof or
taxing authority thereof or therein with respect to the issuance of Common Shares, if any, upon the
conversion. However, the Holder shall pay any such tax that is due because the Holder requests any
Common Shares to be issued in a name other than the Holder’s name. The Conversion Agent may refuse
to deliver the certificates representing the Common Shares being issued in a name other than the
Holder’s name until the Trustee receives a sum sufficient to pay any tax which will be due because
the shares are to be issued in a name other

16

 

than the Holder’s name. Nothing herein shall preclude any tax withholding required by law or
regulations.

               (g) Except as provided in Section 8.04, no adjustment shall be made for dividends on any
shares issued upon the conversion of any Note as provided in this Article.

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

               (i) Upon conversion, a Noteholder will not receive any separate cash payment for accrued and
unpaid interest, except as set forth below. The Company’s settlement of its Conversion Obligation
as described above shall be deemed to satisfy its obligation to pay the principal amount of the
Note and accrued and unpaid interest to, but not including, the Conversion Date. As a result,
accrued and unpaid interest to, but not including, the Conversion Date shall be deemed to be paid
in full rather than cancelled, extinguished or forfeited. Notwithstanding the preceding sentence,
if Notes are converted after the close of business on a Record Date, Holders of such Notes as of
the close of business on the Record Date will receive the interest payable on such Notes on the
corresponding Interest Payment Date notwithstanding the conversion. Notes surrendered for
conversion during the period from the close of business on any regular Record Date to the opening
of business on the corresponding Interest Payment Date must be accompanied by payment of an amount
equal to the interest payable on the Notes so converted; provided, however, that no such payment
need be made (1) if the Company has called the Notes for redemption or (2) to the extent of any
overdue interest existing at the time of conversion with respect to such Note, (3) to Notes
surrendered for conversion in connection with a Fundamental Change in which the Company has
specified a Fundamental Change Repurchase Date that is after a Record Date and on or prior to the
next Interest Payment Date, or (4) to Notes surrendered for conversion after 5:00 p.m., New York
City time on the Record Date immediately preceding the Maturity Date. Except as described above,
no payment or adjustment will be made for accrued interest on converted Notes.

               (j) The Person in whose name the certificate for any Common Shares issued upon conversion is
registered shall be treated as a shareholder of record on and after the Conversion Date; provided,
however, that no surrender of Notes on any date when the stock transfer books of the Company shall
be closed shall be effective to constitute the Person or Persons entitled to receive the Common
Shares upon such conversion as the record holder or holders of such Common Shares on such date, but
such surrender shall be effective to constitute the Person or Persons entitled to receive such
Common Shares as the record holder or holders thereof for all purposes at the close of business on
the next succeeding day on which such stock transfer books are open; such conversion shall be at
the Conversion Rate in effect on the date that such Notes shall have been surrendered for
conversion, as if the stock transfer books of the Company had not been closed. Upon conversion of
Notes, such Person shall no longer be a Noteholder.

17

 

               (k) No fractional Common Shares 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 issued 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 Common Share that would otherwise be issued upon conversion of any Note or Notes (or
specified portions thereof), the Company shall pay a cash adjustment in respect of such fraction
(calculated to the nearest one-100th of a share) in an amount equal to the same fraction of the
Last Reported Sale Price of the Common Shares on the Trading Day immediately preceding the
Conversion Date.

               (l) Reserved.

          Section 8.03 Reserved.

          Section 8.04 Adjustment of Conversion Rate. The Conversion Rate shall be adjusted from time
to time by the Company as follows:

               (a) In case the Company shall issue Common Shares as a dividend or distribution to holders of
the outstanding Common Stock, or shall effect a subdivision into a greater number of Common Shares
or combination into a lesser number of Common Shares, the Conversion Rate shall be adjusted based
on the following formula:

	 	 	 	 	 	 	 	 	 
	 

	 	CR¢ = CR0
	 	x
	 	OS¢
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	OS0	 	 

          where

	 	CR0	=	  the Conversion Rate in effect immediately prior to the Ex-Date for
such dividend or distribution or the effective date of such share split or
combination, as the case may be;
	 
	 	CR¢	=	  the Conversion Rate in effect as of the Ex-Date for such dividend or
distribution or the effective date of such share split or combination, as the
case may be;
	 
	 	OS0	=	  the number of Common Shares outstanding immediately prior to such
event; and
	 
	 	OS¢	=	 the number of Common Shares outstanding immediately after such event.

Such adjustment shall become effective immediately after 9:00 a.m., New York City time, on the
Business Day following the record date fixed for such determination. If any dividend or
distribution of the type described in this Section 8.04(a) is declared but not so paid or made, or
the outstanding Common Shares are not subdivided or combined, as the case may be, the Conversion
Rate shall be immediately readjusted, effective as of the date the Board of Trustees determines not
to pay such dividend or distribution, or subdivide or combine the outstanding

18

 

Common Shares, as the case may be, to the Conversion Rate that would then be in effect if such
dividend, distribution, subdivision or combination had not been declared.

               (b) In case the Company shall issue to all or substantially all holders of its outstanding
Common Shares any rights, warrants or convertible securities entitling them (for a period expiring
within sixty (60) calendar days after the issuance thereof) to subscribe for or purchase Common
Shares at a price per share less than the Last Reported Sale Price of the Common Shares on the
Business Day immediately preceding the date of announcement of such issuance, the Conversion Rate
shall be adjusted based on the following formula:

	 	 	 	 	 	 	 	 	 
	 

	 	CR¢ = CR0
	 	x
	 	OS0 + X
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	OS0 + Y	 	 

          where

	 	CR0	=	the Conversion Rate in effect immediately prior to the Ex-Date for
such distribution;
	 
	 	CR¢	=	  the Conversion Rate in effect as of the Ex-Date for such distribution;
	 
	 	OS0	=	  the number of Common Shares outstanding immediately prior to such
event;
	 
	 	X	=	  the total number of Common Shares issuable pursuant to
such rights, warrants or convertible securities; and
	 
	 	Y	=	the number of Common Shares equal to the aggregate price
payable to exercise such rights, warrants or convertible securities divided by
the average of the Last Reported Sale Prices per Common Share over the ten
consecutive Trading Day period ending on the Business Day immediately preceding
the record date (or, if later, the Ex-Date relating to such distribution) for
the issuance of such rights, warrants or convertible securities.

Such adjustment shall be successively made whenever any such rights, warrants or convertible
securities are issued and shall become effective immediately after 9:00 a.m., New York City time,
on the Business Day following the date fixed for such determination. If such rights, warrants or
convertible securities are not so exercised prior to their expiration, the Conversion Rate shall
again be adjusted to be the Conversion Rate that would then be in effect if such record date for
such distribution had not been fixed.

          In determining whether any rights, warrants or convertible securities entitle the holder
thereof to subscribe for or purchase Common Shares at a price per share less than the Last Reported
Sale Price of the Common Shares on the Business Day immediately preceding the date of announcement
of such issuance, and in determining the aggregate offering price of such Common Shares, there
shall be taken into account any consideration received by the Company for such rights, warrants or
convertible securities and any amount payable on exercise or

19

 

conversion thereof, the value of such consideration, if other than cash, to be determined by
the Board of Trustees.

               (c) In case the Company shall distribute to all or substantially all holders of its Common
Shares, shares of beneficial interest, evidences of its indebtedness or other assets or property of
the Company (including securities, but excluding dividends and distributions covered by Section
8.04(a), Section 8.04(b) or Section 8.04(d) and distributions described below in this paragraph (c)
with respect to Spin-Offs) (any of such shares of beneficial interest, indebtedness, or other asset
or property hereinafter in this Section 8.04(c) called the “Distributed Property”), then, in each
such case the Conversion Rate shall be adjusted based on the following formula:

	 	 	 	 	 	 	 	 	 
	 

	 	CR¢ = CR0
	 	x
	 	SP0
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	SP0 – FMV	 	 

          where

	 	CR0	=	the Conversion Rate in effect immediately prior to the Ex-Date for
such distribution;
	 
	 	CR¢	=	the Conversion Rate in effect as of the Ex-Date for such distribution;
	 
	 	SP0	=	  the average of the Last Reported Sale Prices of the Common Shares
over the ten consecutive Trading Day period ending on the Business Day
immediately preceding the record date for such distribution (or, if earlier,
the Ex-Date relating to such distribution); and
	 
	 	FMV	=	  the fair market value (as determined by the Board of
Trustees) of the Distributed Property distributed with respect to each
outstanding share of Common Shares on the record date for such distribution
(or, if earlier, the Ex-Date relating to such distribution).

Such adjustment shall become effective immediately prior to 9:00 a.m., New York City time, on the
Business Day following the date fixed for the determination of shareholders entitled to receive
such distribution; provided that if the then fair market value (as so determined) of the portion of
the Distributed Property so distributed applicable to one Common Share is equal to or greater than
SP0 as set forth above, in lieu of the foregoing adjustment, adequate provision shall be
made so that each Noteholder shall have the right to receive, for each $1,000 principal amount of
Notes upon conversion, the amount of Distributed Property such Holder would have received had such
Holder owned a number of Common Shares equal to the Conversion Rate on the record date. If such
dividend or distribution is not so paid or made, the Conversion Rate shall again be adjusted to be
the Conversion Rate that would then be in effect if such dividend or distribution had not been
declared. If the Board of Trustees determines the fair market value of any

20

 

distribution for purposes of this Section 8.04(c) by reference to the actual or when issued trading
market for any securities, it must in doing so consider the prices in such market over the same
period used in determining SP0 above.

          With respect to an adjustment pursuant to this Section 8.04(c) where there has been a payment
of a dividend or other distribution on the Common Shares in shares of beneficial interest any class
or series, or similar equity interest, of or relating to a Subsidiary or other business unit (a
“Spin-Off”), unless the Company distributes such shares of beneficial interest or equity interests
to each Noteholder on the same basis as such Noteholder would have received had it converted its
Notes solely into Common Shares immediately prior to such dividend or distribution, the Conversion
Rate in effect immediately before 5:00 p.m., New York City time, on the Record Date fixed for
determination of shareholders entitled to receive the distribution will be increased based on the
following formula:

	 	 	 	 	 	 	 	 	 
	 

	 	CR¢ = CR0
	 	x
	 	FMV0 + MP0
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	MP0	 	 

          where

	 	CR0	=	  the Conversion Rate in effect immediately prior to such
distribution;
	 
	 	CR¢	=	 the Conversion Rate in effect immediately after such distribution;
	 
	 	FMV0	=	  the average of the Last Reported Sale Prices of the shares of
beneficial interest or similar equity interest distributed to holders of Common
Shares applicable to one Common Share over the first ten consecutive Trading
Day period after the effective date of the Spin-Off; and
	 
	 	MP0	=	  the average of the Last Reported Sale Prices of Common Shares over
the first ten consecutive Trading Day period after the effective date of the
Spin-Off.

Such adjustment shall occur on the tenth Trading Day from, and including, the effective date of the
Spin-Off; provided that in respect of any conversion within the ten Trading Days following any
Spin-Off, references within this paragraph (c) to ten days shall be deemed replaced with such
lesser number of Trading Days as have elapsed between such Spin-Off and the Conversion Date in
determining the applicable Conversion Rate.

          Rights or warrants distributed by the Company to all holders of Common Shares, entitling the
holders thereof to subscribe for or purchase Common Shares (either initially or under certain
circumstances), which rights or warrants, until the occurrence of a specified event or events
(“Trigger Event”): (i) are deemed to be transferred with such Common Shares; (ii) are not
exercisable; and (iii) are also issued in respect of future issuances of Common Shares, shall be
deemed not to have been distributed for purposes of this Section 8.04 (and no adjustment to the
Conversion Rate under this Section 8.04 will be required) until the occurrence of the

21

 

earliest Trigger Event, whereupon such rights and warrants shall be deemed to have been
distributed and an appropriate adjustment (if any is required) to the Conversion Rate shall be made
under this Section 8.04(c). If any such right or warrant, including any such existing rights or
warrants distributed prior to the date of this Tenth Supplemental Indenture, are subject to events,
upon the occurrence of which such rights or warrants become exercisable to purchase different
securities, evidences of indebtedness or other assets, then the date of the occurrence of any and
each such event shall be deemed to be the date of distribution and record date with respect to new
rights or warrants with such rights (and a termination or expiration of the existing rights or
warrants without exercise by any of the holders thereof). In addition, in the event of any
distribution (or deemed distribution) of rights or warrants, or any Trigger Event or other event
(of the type described in the preceding sentence) with respect thereto that was counted for
purposes of calculating a distribution amount for which an adjustment to the Conversion Rate under
this Section 8.04 was made, (1) in the case of any such rights or warrants that shall all have been
redeemed or repurchased without exercise by any holders thereof, the Conversion Rate shall be
readjusted upon such final redemption or repurchase to give effect to such distribution or Trigger
Event, as the case may be, as though it were a cash distribution, equal to the per share redemption
or repurchase price received by a holder or holders of Common Shares with respect to such rights or
warrants (assuming such holder had retained such rights or warrants), made to all holders of Common
Shares as of the date of such redemption or repurchase, and (2) in the case of such rights or
warrants that shall have expired or been terminated without exercise by any holders thereof, the
Conversion Rate shall be readjusted as if such rights and warrants had not been issued.

          For purposes of this Section 8.04(c), Section 8.04(a) and Section 8.04(b), any dividend or
distribution to which this Section 8.04(c) is applicable that also includes Common Shares to which
Section 8.04(a) applies or rights or warrants to subscribe for or purchase Common Shares to which
Section 8.04(a) or Section 8.04(b) applies (or both), shall be deemed instead to be (1) a dividend
or distribution of the evidences of indebtedness, assets or shares of Capital Stock other than such
Common Shares or rights or warrants to which Section 8.04(c) applies (and any Conversion Rate
adjustment required by this Section 8.04(c) with respect to such dividend or distribution shall
then be made) immediately followed by (2) a dividend or distribution of such Common Shares or such
rights or warrants (and any further Conversion Rate adjustment required by Section 8.04(a) and
Section 8.04(b) with respect to such dividend or distribution shall then be made), except (A) the
record date of such dividend or distribution shall be substituted as “the record date” and “the
date fixed for such determination” within the meaning of Section 8.04(a) and Section 8.04(b) and
(B) any Common Shares included in such dividend or distribution shall not be deemed “outstanding
immediately prior to such event” within the meaning of Section 8.04(a).

               (d) In case the Company shall pay a dividend or make a distribution consisting exclusively of
cash to all or substantially all holders of its Common Shares to the extent that the aggregate of
all such cash dividends or distributions paid in any quarter exceeds the Dividend Threshold Amount
for such quarter, the Conversion Rate shall be adjusted based on the following formula:

	 	 	 	 	 	 	 	 	 
	 

	 	CR¢ = CR0
	 	x
	 	SP0 – T
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	SP0 – C	 	 

22

 

          where

	 	CR0	=	  the Conversion Rate in effect immediately prior to the Ex-Date for
such distribution;
	 
	 	CR¢	=	  the Conversion Rate in effect as of the Ex-Date for such distribution;
	 
	 	SP0	=	  the average of the Last Reported Sale Prices of the Common Shares
over the period of ten consecutive Trading Days ending the Business Day
immediately preceding the record date (as defined in clause (f) of this
Section) for such distribution (or, if earlier, the Ex-Date relating to such
distribution);
	 
	 	T	=	  the dividend threshold amount (“Dividend Threshold Amount”),
which amount shall initially be $0.15 per quarter and which shall be
appropriately adjusted from time to time for any share dividends on, or
subdivisions or combinations of, Common Shares; provided, that if a Conversion
Rate adjustment is required to be made as a result of a distribution that is
not a quarterly dividend either in whole or in part, the Dividend Threshold
Amount shall be deemed to be zero; and
	 
	 	C	=	the amount in cash per share that the Company distributes to
holders of Common Shares.

Such adjustment shall become effective immediately after 5:00 p.m., New York City time, on the
record date for such dividend or distribution; provided that if the portion of the cash so
distributed applicable to one Common Share is equal to or greater than SP0 above, in
lieu of the foregoing adjustment, adequate provision shall be made so that each Noteholder shall
have the right to receive upon conversion of a Note (or any portion thereof) the amount of cash
such Holder would have received had such Holder owned a number of shares equal to the Conversion
Rate on the record date. If such dividend or distribution is not so paid or made, the Conversion
Rate shall again be adjusted to be the Conversion Rate that would then be in effect if such
dividend or distribution had not been declared.

          For the avoidance of doubt, for purposes of this Section 8.04(d), in the event of any
reclassification of the Common Shares, as a result of which the Notes become convertible into more
than one class of Common Shares, if an adjustment to the Conversion Rate is required pursuant to
this Section 8.04(d), references in this Section to one Common Share or Last Reported Sale Price of
one Common Share shall be deemed to refer to a unit or to the price of a unit consisting of the
number of shares of each class of Common Shares into which the Notes are then convertible equal to
the number of shares of such class issued in respect of one Common Share in such reclassification.
The above provisions of this paragraph shall similarly apply to successive reclassifications.

23

 

               (e) In case the Company or any of its Subsidiaries makes a payment in respect of a tender
offer or exchange offer for all or any portion of the Common Shares, to the extent that the cash
and value of any other consideration included in the payment per Common Share exceeds the Last
Reported Sale Price of the Common Shares on the Trading Day next succeeding the last date on which
tenders or exchanges may be made pursuant to such tender or exchange offer (as it may be amended),
the Conversion Rate shall be increased based on the following formula:

	 	 	 	 	 	 	 	 	 
	 

	 	CR¢ = CR0
	 	x
	 	AC + (SP¢ x OS¢)
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	SP¢ x OS0	 	 

          where

	 	CR0	=	  the Conversion Rate in effect on the date such tender or exchange
offer expires;
	 
	 	CR¢	=	  the Conversion Rate in effect on the day next succeeding the date such
tender or exchange offer expires;
	 
	 	AC	=	  the aggregate value of all cash and any other consideration
(as determined by the Board of Trustees) paid or payable for shares purchased
in such tender or exchange offer;
	 
	 	OS0	=	  the number of Common Shares outstanding immediately prior to the
date such tender or exchange offer expires;
	 
	 	OS¢	=	  the number of Common Shares outstanding immediately after the date such
tender or exchange offer expires; and
	 
	 	SP¢	=	  the average of the Last Reported Sale Prices of Common Shares over the
ten consecutive Trading Day period commencing on the Trading Day next
succeeding the date such tender or exchange offer expires,

such adjustment to become effective immediately prior to the opening of business on the day
following the last date on which tenders or exchanges may be made pursuant to such tender or
exchange offer. If the Company is obligated to purchase shares pursuant to any such tender or
exchange offer, but the Company is permanently prevented by applicable law from effecting all or
any such purchases or all or any portion of such purchases are rescinded, the Conversion Rate shall
again be adjusted to be the Conversion Rate that would then be in effect if such tender or exchange
offer had not been made or had only been made in respect of the purchases that had been effected.
No adjustment to the Conversion Rate will be made if the application of the foregoing formulae
would result in a decrease in the Conversion Rate.

               (f) For purposes of this Section 8.04 the term “record date” shall mean, with respect to any
dividend, distribution or other transaction or event in which the

24

 

holders of Common Shares have the right to receive any cash, securities or other property or
in which the Common Shares (or other applicable security) is converted for or converted into any
combination of cash, securities or other property, the date fixed for determination of shareholders
entitled to receive such cash, securities or other property (whether such date is fixed by the
Board of Trustees or by statute, contract or otherwise).

               (g) In addition to those required by clauses (a), (b), (c), (d), and (e) of this Section 8.04,
and to the extent permitted by applicable law and subject to the applicable rules of the New York
Stock Exchange, the Company from time to time may increase the Conversion Rate by any amount for a
period of at least 20 days if the Board of Trustees determines that such increase would be in the
Company’s best interest. In addition, the Company may also (but is not required to) increase the
Conversion Rate to avoid or diminish any income tax to holders of Common Shares or rights to
purchase Common Shares in connection with any dividend or distribution of shares (or rights to
acquire shares) or similar event. Whenever the Conversion Rate is increased pursuant to the
preceding sentence, the Company shall mail to the Holder of each Note at his last address appearing
on the Security Register a notice of the increase at least five days prior to the date the
increased Conversion Rate takes effect, and such notice shall state the increased Conversion Rate
and the period during which it will be in effect.

               (h) All calculations and other determinations under this Article VIII shall be made by the
Company and shall be made to the nearest cent or to the nearest one-ten thousandth (1/10,000) of a
share, as the case may be. No adjustment shall be made for the Company’s issuance of Common Shares
or any securities convertible into or exchangeable for Common Shares, or the right to purchase
Common Shares or such convertible or exchangeable securities, other than as provided in this
Section 8.04. No adjustment shall be made to the Conversion Rate unless such adjustment would
require a change of at least 1% in the Conversion Rate then in effect at such time. The Company
shall carry forward any adjustments that are less than 1% of the Conversion Rate and make such
carried forward adjustments, regardless of whether the aggregate adjustment is less than 1% within
one year of the first such adjustment carried forward, upon a Fundamental Change, upon any call of
the Notes for redemption or upon maturity.

               (i) Whenever the Conversion Rate is adjusted as herein provided, the Company shall promptly
file with the Trustee and any Conversion Agent other than the Trustee an Officers’ Certificate
setting forth the Conversion Rate after such adjustment and setting forth a brief statement of the
facts requiring such adjustment. The Trustee and Conversion Agent may conclusively rely on the
accuracy of the Conversion Rate adjustment provided by the Company. Unless and until a Responsible
Officer of the Trustee shall have received such Officers’ Certificate, the Trustee shall not be
deemed to have knowledge of any adjustment of the Conversion Rate and may assume without inquiry
that the last Conversion Rate of which it has knowledge is still in effect. Promptly after
delivery of such certificate, the Company shall prepare a notice of such adjustment of the
Conversion Rate setting forth the adjusted Conversion Rate and the date on which each adjustment
becomes effective and shall mail such notice of such adjustment of the Conversion Rate to the
Holder of each Note at his last address appearing on the Security Register, within thirty (30) days
of the effective date of such adjustment. Failure to deliver such notice shall not affect the
legality or validity of any such adjustment.

25

 

               (j) For purposes of this Section 8.04, the number of Common Shares at any time
outstanding shall not include shares held in the treasury of the Company but shall include shares
issuable in respect of scrip certificates issued in lieu of fractions of Common Shares.

          Notwithstanding the foregoing provisions of this Section 8.04, in no event will the total
number of Common Shares issuable upon conversion exceed 74.6268 per $1,000 principal amount of
Notes (subject to adjustment in the same manner or as set forth in clauses (a), (b) and (c) of this
Section 8.04).

          Section 8.05 Shares to be Fully Paid. Subject to Section 8.02(k), the Company shall provide,
free from preemptive rights, sufficient Common Shares to provide for conversion of the Notes from
time to time as such Notes are presented for conversion.

          Section 8.06 Effect of Reclassification, Consolidation, Merger or Sale. If any of the
following events occur, namely (i) any reclassification or change of the outstanding Common Shares
(other than a change in par value, or from par value to no par value, or from no par value to par
value, or as a result of a split, subdivision or combination), (ii) any consolidation, merger or
combination of the Company with another Person, or (iii) any sale or conveyance of all or
substantially all of the property and assets of the Company to any other Person, in each case as a
result of which holders of Common Shares shall be entitled to receive stock, other securities or
other property, assets or cash (or any combination thereof) with respect to or in exchange for such
Common Shares (any such event a “Reorganization Event”), then:

               (a) the Company or the successor or purchasing Person, as the case may be, shall execute with
the Trustee a supplemental indenture (which, as evidenced in an Opinion of Counsel delivered to the
Trustee, shall comply with the Trust Indenture Act as in force at the date of execution of such
supplemental indenture if such supplemental indenture is then required to so comply) providing for
the conversion and settlement of the Notes as set forth in this Tenth Supplemental Indenture. Such
supplemental indenture shall provide for adjustments which shall be as nearly equivalent as may be
practicable to the adjustments provided for in this Article and the Trustee may conclusively rely
on the determination by the Company of the equivalency of such adjustments. If, in the case of any
Reorganization Event, the Reference Property includes shares of stock or other securities and
assets of a corporation other than the successor or purchasing corporation, as the case may be, in
such reclassification, change, consolidation, merger, combination, sale or conveyance, then such
supplemental indenture shall also be executed by such other corporation and shall contain such
additional provisions to protect the interests of the Holders of the Notes as the Board of Trustees
shall reasonably consider necessary by reason of the foregoing, including to the extent required by
the Board of Trustees and practicable the provisions providing for the repurchase rights set forth
in Article 9 herein.

          In the event the Company shall execute a supplemental indenture pursuant to this Section 8.06,
the Company shall, in addition to the Officers’ Certificate and Opinion of Counsel required by
Section 102 of the Base Indenture, file with the Trustee an Officers’ Certificate briefly stating
the kind or amount of cash, securities or property or asset that will constitute the

26

 

Reference Property after any such Reorganization Event, any adjustment to be made with respect
thereto, and the Trustee shall promptly mail notice thereof to all Noteholders.

               (b) Notwithstanding the provisions of Section 8.02(a), and subject to the provisions of
Section 8.01, at the effective time of such Reorganization Event, the right to convert each $1,000
principal amount of Notes will be changed to a right to convert such Note by reference to the kind
and amount of stock, other securities or other property, assets or cash (or any combination
thereof) that such holder of Notes would have owned immediately after such Reorganization Event if
such holder had converted their Notes immediately prior to such Reorganization Event (the
“Reference Property”). For purposes of the foregoing, where a Reorganization Event involves
consideration based upon any form of stockholder election, the consideration will be deemed to be
the weighted average of the types and amounts of consideration received by the holders of Common
Shares that affirmatively make such an election. The Company shall not become a party to any such
transaction unless its terms are consistent with the preceding. None of the foregoing provisions
shall affect the right of a Holder of Notes to convert its Notes in accordance with the provisions
of Article VIII hereof prior to the effective date of a Reorganization Event. For the avoidance of
doubt, adjustments to the Conversion Rate set forth under Section 8.04 do not apply to
distributions to the extent that the right to convert Notes has been changed into the right to
convert into Reference Property.

               (c) The Company shall cause notice of the execution of such supplemental indenture to be
mailed to each Noteholder, at his address appearing on the Security Register, within thirty (30)
days after execution thereof. Failure to deliver such notice shall not affect the legality or
validity of such supplemental indenture.

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

          Section 8.07 Certain Covenants. The Company covenants that all Common Shares delivered upon
conversion of Notes will be fully paid and non-assessable by the Company and free from all taxes,
liens and changes with respect to the issue thereof.

          Section 8.08 Responsibility of Trustee. The Trustee and any other Conversion Agent shall not
at any time be under any duty or responsibility to any Noteholder to determine the Conversion Rate
or whether any facts exist which may require any adjustment of the Conversion Rate, or with respect
to the nature or extent or calculation of any such adjustment when made, or with respect to the
method employed, or herein or in any supplemental indenture provided to be employed, in making the
same. The Trustee and any other Conversion Agent shall not be accountable with respect to the
validity or value (or the kind or amount) of any Common Shares, or of any securities or property,
which may at any time be issued or delivered upon the conversion of any Note; and the Trustee and
any other Conversion Agent make no representations with respect thereto. Neither the Trustee nor
any Conversion Agent shall be responsible for any failure of the Company to transfer or deliver any
Common Shares or share certificates or other securities or property or cash upon the surrender of
any Note for the purpose of conversion or to comply with any of the duties, responsibilities or
covenants of the Company contained in this Article.

27

 

          Without limiting the generality of the foregoing, neither the Trustee nor any Conversion Agent
shall be under any responsibility to determine the correctness of any provisions contained in any
supplemental indenture entered into pursuant to Section 8.06 relating either to the kind or amount
of shares of stock or securities or property (including cash) receivable by Noteholders upon the
conversion of their Notes after any event referred to in such Section 8.06 or to any adjustment to
be made with respect thereto, but, subject to the provisions of Article Six of the Base Indenture,
may accept as conclusive evidence of the correctness of any such provisions, and shall be protected
in relying upon, the Officers’ Certificate with respect thereto.

          Section 8.09 Notice to Holders Prior to Certain Actions.

          In case:

               (a) the Company shall declare a dividend (or any other distribution) on its Common Shares that
would require an adjustment in the Conversion Rate pursuant to Section 8.04; or

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

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

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

the Company shall cause to be filed with the Trustee and to be mailed to each Noteholder at his
address appearing on the Security Register as promptly as possible but in any event at least thirty
(30) days prior to the applicable date specified in clause (x) or (y) below, as the case may be, a
notice stating (x) the date on which a record is to be taken for the purpose of such dividend,
distribution or rights or warrants, or, if a record is not to be taken, the date as of which the
holders of Common Shares of record to be entitled to such dividend, distribution or rights are to
be determined, or (y) the date on which such reclassification, consolidation, merger, sale,
transfer, dissolution, liquidation or winding-up is expected to become effective or occur, and the
date as of which it is expected that holders of Common Shares of record shall be entitled to
convert their Common Shares for securities or other property deliverable upon such
reclassification, consolidation, merger, sale, transfer, dissolution, liquidation or winding-up.
Failure to give such notice, or any defect therein, shall not affect the legality or validity of
such dividend, distribution, reclassification, consolidation, merger, sale, transfer, dissolution,
liquidation or winding-up.

28

 

          Section 8.10 Shareholder Rights Plans. Upon conversion of the Notes, the Holders shall receive, in addition to any Common Shares
issuable upon such conversion, the associated rights issued under any future shareholder rights
plan the Company adopts unless, prior to conversion, the rights have separated from the Common
Shares, expired, terminated or been redeemed or converted in accordance with such rights plan. If,
and only if, the Holders receive rights under such shareholder rights plans as described in the
preceding sentence upon conversion of their Notes, then no other adjustment pursuant to this
Article VIII shall be made in connection with such shareholder rights plans.

          Section 8.11 Ownership Limit. Notwithstanding any other provision of this Tenth Supplemental
Indenture or the Notes (a) no Holder of Notes (or beneficial owner of Notes) shall be entitled to
convert such Notes for Common Shares to the extent that receipt of such shares would cause such
Holder (or beneficial owner of Notes) (together with such Holder’s (or beneficial owner’s)
affiliates) to exceed the applicable ownership limit contained in the declaration of trust of the
Company and (b) no Holder of Notes (or beneficial owner of Notes) shall have any right to receive
cash or other consideration in lieu of Common Shares upon conversion of the Notes to the extent
such conversion would otherwise cause (if fully converted into Common Shares) such Holder (together
with such Holder’s Affiliates) to exceed such ownership limit; provided that any such Holder shall
be entitled to receive on the same basis as other Holders cash paid upon redemption or a repurchase
upon a Fundamental Change.

ARTICLE IX

REPURCHASE OF NOTES AT OPTION OF HOLDERS

          Section 9.01 Intentionally Omitted.

          Section 9.02 Repurchase at Option of Holders Upon a Fundamental Change.

               (a) If a Fundamental Change occurs at any time, then each Noteholder shall have the right, at
such Holder’s option, to require the Company to repurchase all of such Holder’s Notes or any
portion thereof that is a multiple of $1,000 principal amount, for cash on the date (the
“Fundamental Change Repurchase Date”) specified by the Company that is not less than twenty (20)
Business Days and not more than thirty-five (35) Business Days after the date of the Fundamental
Change Company Notice (as defined below) at a repurchase price equal to 100% of the principal
amount thereof, together with accrued and unpaid interest thereon to, but excluding, the
Fundamental Change Repurchase Date (the “Fundamental Change Repurchase Price”).

          Repurchases of Notes under this Section 9.02 shall be made, at the option of the Holder
thereof, upon:

               (i) delivery to the Trustee (or other Paying Agent appointed by the Company) by a
Holder of a duly completed notice (the “Fundamental Change
Repurchase Notice”) in the form set forth on the reverse of the Note prior to the close
of business on the Fundamental Change Repurchase Date; and

29

 

               (ii) delivery or book-entry transfer of the Notes to the Trustee (or other Paying Agent
appointed by the Company) at any time after delivery of the Fundamental Change Repurchase
Notice (together with all necessary endorsements) at the Corporate Trust Office of the
Trustee (or other Paying Agent appointed by the Company) in the Borough of Manhattan, such
delivery being a condition to receipt by the Holder of the Fundamental Change Repurchase
Price therefor; provided that such Fundamental Change Repurchase Price shall be so paid
pursuant to this Section 9.02 only if the Note so delivered to the Trustee (or other Paying
Agent appointed by the Company) shall conform in all respects to the description thereof in
the related Fundamental Change Repurchase Notice.

The Fundamental Change Repurchase Notice shall state:

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

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

               (C) that the Notes are to be repurchased by the Company pursuant to
the applicable provisions of the Notes and this Tenth Supplemental
Indenture.

          Any repurchase by the Company contemplated pursuant to the provisions of this Section 9.02
shall be consummated by the delivery of the consideration to be received by the Holder promptly
following the later of the Fundamental Change Repurchase Date and the time of the book-entry
transfer or delivery of the Note.

          The Trustee (or other Paying Agent appointed by the Company) shall promptly notify the Company
of the receipt by it of any Fundamental Change Repurchase Notice or written notice of withdrawal
thereof in accordance with the provisions of Section 9.02(c).

          Any Note that is to be repurchased only in part shall be surrendered to the Trustee (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 his
attorney duly authorized in writing), and the Company shall execute, and the Trustee shall
authenticate and make available for delivery to the Holder of such Note without service charge, a
new Note or Notes, containing identical terms and conditions, each in an authorized denomination in
aggregate principal amount equal to and in exchange for the unrepurchased portion of the principal
of the Note so surrendered.

               (b) On or before the twentieth day after the occurrence of any Fundamental Change, the Company
shall provide to all Holders of record of the Notes and the Trustee and Paying Agent a notice (the
“Fundamental Change Company Notice”) of the
occurrence of such Fundamental Change and of the repurchase right at the option of the Holders
arising as a result thereof. Such mailing shall be by first class mail. Simultaneously with
providing such Fundamental Change Company Notice, the Company shall publish a notice

30

 

containing the
information included therein once in a newspaper of general circulation in The City of New York or
publish such information on the Company’s website or through such other public medium as the
Company may use at such time.

          Each Fundamental Change Company Notice shall specify:

               (i) the events causing the Fundamental Change;

               (ii) the date of the Fundamental Change;

               (iii) that the Holder must exercise the repurchase right on or prior to the close of
business on the Fundamental Change Repurchase Date;

               (iv) the Fundamental Change Repurchase Price;

               (v) the Fundamental Change Repurchase Date;

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

               (vii) the applicable Conversion Rate and any adjustments to the applicable Conversion
Rate;

               (viii) that the Notes with respect to which a Fundamental Change Repurchase Notice has
been delivered by a Holder may be converted only if the Holder withdraws the Fundamental
Change Repurchase Notice in accordance with the terms of this Tenth Supplemental Indenture;
and

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

          No failure of the Company to give the foregoing notices and no defect therein shall limit the
Noteholders’ repurchase rights or affect the validity of the proceedings for the repurchase of the
Notes pursuant to this Section 9.02.

               (c) A Fundamental Change Repurchase Notice may be withdrawn by means of a written notice of
withdrawal delivered to the Trustee and Paying Agent in accordance with the Fundamental Change
Company Notice at any time prior to the close of business on the Business Day 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;

               (ii) if certificated Notes have been issued, the certificate numbers of the withdrawn
Notes; and

31

 

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

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

          (d) On or prior to 11:00 a.m. (local time in The City of New York) on the second Business Day
following the Fundamental Change Repurchase Date, the Company will deposit with the Trustee (or
other Paying Agent appointed by the Company or if the Company is acting as its own Paying Agent,
set aside, segregate and hold in trust in accordance with the Base Indenture as modified by this
Tenth Supplemental Indenture) an amount of money sufficient to repurchase on the Fundamental Change
Repurchase Date all of the Notes to be repurchased on such date at the Fundamental Change
Repurchase Price. Subject to receipt of funds and/or Notes by the Trustee (or other Paying Agent
appointed by the Company), payment for Notes surrendered for repurchase (and not withdrawn) prior
to the close of business on the Fundamental Change Repurchase Date will be made promptly after the
later of (x) the Fundamental Change Repurchase Date with respect to such Note (provided the Holder
has satisfied the conditions to the payment of the Fundamental Change Repurchase Price in Section
9.02), and (y) the time of book-entry transfer or the delivery of such Note to the Trustee (or
other Paying Agent appointed by the Company) by the Holder thereof in the manner required by
Section 9.02 by mailing checks for the amount payable to the Holders of such Notes entitled thereto
as they shall appear in the Security Register, provided, however, that payments to the Depositary
shall be made by wire transfer of immediately available funds to the account of the Depositary or
its nominee. The Trustee shall, promptly after such payment and upon written demand by the Company,
return to the Company any funds in excess of the Fundamental Change Repurchase Price.

          (e) If the Trustee (or other Paying Agent appointed by the Company) holds money or securities
sufficient to repurchase on the Fundamental Change Repurchase Date all the Notes or portions
thereof that are to be purchased as of the second Business Day following the Fundamental Change
Repurchase Date, then on and after the Fundamental Change Repurchase Date (i) such Notes will cease
to be Outstanding, (ii) interest will cease to accrue on such Notes, and (iii) all other rights of
the Holders of such Notes will terminate, whether or not book-entry transfer of the Notes has been
made or the Notes have been delivered to the Trustee or Paying Agent, other than the right to
receive the Fundamental Change Repurchase Price upon delivery of the Notes.

          (f) The provisions of Article Thirteen of the Base Indenture shall not be applicable to the
Notes.

32

 

ARTICLE X

MISCELLANEOUS PROVISIONS

          Section 10.01 Ratification of Base Indenture. Except as expressly modified or amended hereby,
the Base Indenture continues in full force and effect and is in all respects confirmed, ratified
and preserved and the provisions thereof shall be applicable to the Notes and this Tenth
Supplemental Indenture. Without limiting the generality of the foregoing, the Notes shall have the
benefit of Article Three of the Second Supplemental Indenture to the Base Indenture in accordance
with its terms.

          Section 10.02 Provisions Binding on Company’s Successors. All the covenants, stipulations,
promises and agreements of the Company contained in this Tenth Supplemental Indenture shall bind
its successors and assigns whether so expressed or not.

          Section 10.03 Official Acts by Successor Corporation. Any act or proceeding by any provision
of this Tenth Supplemental Indenture authorized or required to be done or performed by any board,
committee or officer of the Company shall and may be done and performed with like force and effect
by the like board, committee or officer of any corporation or entity that shall at the time be the
lawful sole successor of the Company.

          Section 10.04 Addresses for Notices, Etc. Any notice or demand which by any provision of this
Tenth Supplemental Indenture is required or permitted to be given or served by the Trustee or by
the Noteholders on the Company shall be deemed to have been sufficiently given or made, for all
purposes if given or served by being deposited postage prepaid by registered or certified mail in a
post office letter box addressed (until another address is filed by the Company with the Trustee)
to ProLogis, 4545 Airport Way, Denver, Colorado 80239, Attention: General Counsel. Any notice,
direction, request or demand hereunder to or upon the Trustee shall be deemed to have been
sufficiently given or made, for all purposes, if given or served by being deposited postage prepaid
by registered or certified mail in a post office letter box addressed to U.S. Bank National
Association, 100 Wall Street, Suite 1600, New York, New York 10005, Attention: Corporate Trust
Services/ProLogis.

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

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

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

          Section 10.05 Governing Law. THIS TENTH SUPPLEMENTAL INDENTURE AND EACH NOTE SHALL BE DEEMED
TO BE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF NEW YORK, AND FOR ALL PURPOSES SHALL BE

33

 

CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS ENTERED
INTO AND TO BE PERFORMED THEREIN.

          Section 10.06 Non-Business Day. Section 113 of the Base Indenture shall also apply to any
Fundamental Change Purchase Date or Conversion Date in respect of the Notes.

          Section 10.07 Benefits of Indenture. Nothing in this Tenth Supplemental Indenture or in the
Notes, expressed or implied, shall give to any person, other than the parties hereto, any Paying
Agent, any authenticating agent, any Security Registrar and their successors hereunder, the
Noteholders, any benefit or any legal or equitable right, remedy or claim under this Tenth
Supplemental Indenture.

          Section 10.08 Table of Contents, Headings, Etc. The table of contents and the titles and
headings of the articles and sections of this Tenth Supplemental Indenture have been inserted for
convenience of reference only, are not to be considered a part hereof, and shall in no way modify
or restrict any of the terms or provisions hereof.

          Section 10.09 Execution in Counterparts. This Tenth Supplemental Indenture may be executed in
any number of counterparts, each of which shall be an original, but such counterparts shall
together constitute but one and the same instrument.

          Section 10.10 Trustee. The Trustee makes no representations as to the validity or sufficiency
of this Tenth Supplemental Indenture. The statements and recitals herein are deemed to be those of
the Company and not of the Trustee.

          Section 10.11 Further Instruments and Acts. Upon request of the Trustee, the Company will
execute and deliver such further instruments and do such further acts as may be reasonably
necessary or proper to carry out more effectively the purposes of this Tenth Supplemental
Indenture.

          Section 10.12 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.

          Section 10.13 Force Majeure. In no event shall the Trustee or Conversion Agent be responsible
or liable for any failure or delay in the performance of its obligations hereunder arising out of
or caused by, directly or indirectly, forces beyond its control, including, without limitation,
strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances,
nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of
utilities, communications or computer (software and hardware) services; it being understood that
the Trustee shall use reasonable efforts which are consistent with accepted practices in the
banking industry to resume performance as soon as practicable under the circumstances.

34

 

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

	 	 	 	 	 
	 	PROLOGIS

 	 
	 	By:  	/s/ Phillip D. Joseph, Jr.
 	 
	 	 	Name:  	Phillip D. Joseph, Jr. 	 
	 	 	Title:  	Senior Vice President & Treasurer 	 
	 

[SEAL]

	 	 	 	 	 
	Attest:

 	 	 
	By:  	/s/ David Grawemeyer
 	 	 
	 	Name:  	David Grawemeyer 	 	 
	 	Title:  	Managing
Director and Deputy

General Counsel 	 	 
	 

[Tenth Supplemental Indenture]

 

 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION,

as Trustee

 	 
	 	By:  	/s/ Thomas E. Tabor
 	 
	 	 	Name:  	Thomas E. Tabor 	 
	 	 	Title:  	Vice President 	 
	 

[Tenth Supplemental Indenture]

 

 

SCHEDULE A

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock Price	 
	Effective Date	 	$13.40	 	 	$15.00	 	 	$17.50	 	 	$20.00	 	 	$22.50	 	 	$25.00	 
	March 16, 2010
	 	 	16.7765	 	 	 	13.1608	 	 	 	8.1976	 	 	 	5.1554	 	 	 	3.2512	 	 	 	2.0393	 
	March 15, 2011
	 	 	16.7765	 	 	 	12.9280	 	 	 	7.8232	 	 	 	4.7552	 	 	 	2.8834	 	 	 	1.7279	 
	March 15, 2012
	 	 	16.7765	 	 	 	12.4979	 	 	 	7.2319	 	 	 	4.1631	 	 	 	2.3658	 	 	 	1.3110	 
	March 15, 2013
	 	 	16.7765	 	 	 	11.7694	 	 	 	6.3041	 	 	 	3.2875	 	 	 	1.6518	 	 	 	0.7814	 
	March 15, 2014
	 	 	16.7765	 	 	 	10.5088	 	 	 	4.7035	 	 	 	1.8907	 	 	 	0.6585	 	 	 	0.1765	 
	March 15, 2015
	 	 	16.7765	 	 	 	8.8164	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock Price	 
	Effective Date	 	$27.50	 	 	$30.00	 	 	$32.50	 	 	$35.00	 	 	$37.50	 	 	$40.00	 
	March 16, 2010
	 	 	1.2602	 	 	 	0.7572	 	 	 	0.4334	 	 	 	0.2282	 	 	 	0.1038	 	 	 	0.0349	 
	March 15, 2011
	 	 	1.0108	 	 	 	0.5662	 	 	 	0.2937	 	 	 	0.1328	 	 	 	0.0455	 	 	 	0.0055	 
	March 15, 2012
	 	 	0.6940	 	 	 	0.3377	 	 	 	0.1397	 	 	 	0.0396	 	 	 	0.0000	 	 	 	0.0000	 
	March 15, 2013
	 	 	0.3305	 	 	 	0.1106	 	 	 	0.0174	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 
	March 15, 2014
	 	 	0.0207	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 
	March 15, 2015
	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 

Sch. A-1

 

EXHIBIT A

[FORM OF FACE OF NOTE]

[Include only for Global Notes]

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

Exh. A-1

 

PROLOGIS

3.25% Convertible Senior Notes due 2015

			
	 	 	 
	No.           
	 	$                     
	 	 	 
	CUSIP No. 743410 AY8	 	 

          PROLOGIS, a real estate investment trust organized and existing under the laws of the State of
Maryland (herein called the “Company,” which term includes any successor corporation under the
Indenture referred to on the reverse hereof), for value received hereby promises to pay to [CEDE &
CO.], or registered assigns, the principal sum of [___] ($[___]) or such other principal amount
as shall be set forth on the Schedule I hereto on March 15, 2015.

          This Security shall bear interest at the rate of 3.25% per year from March 16, 2010, or from
the most recent date to which interest had been paid or provided. Interest is payable
semi-annually in arrears on each March 15 and September 15, commencing September 15, 2010, to
Holders of record at the close of business on the preceding March 1 and September 1, respectively.
Interest payable on each Interest Payment Date shall equal the amount of interest accrued from, and
including the immediately preceding Interest Payment Date (or from and including March 16, 2010, if
no interest has been paid hereon) to but excluding such Interest Payment Date.

          Payment of the principal and interest, on this Security will be made at the office or agency
of the Company maintained for that purpose in the Borough of Manhattan, City of New York, or
elsewhere as provided in the Indenture, in such coin or currency of the United States of America as
at the time of payment is legal tender for payment of public and private debts; provided, however,
that at the option of the Company, payment of interest, may be made by (i) check mailed to the
address of the Person entitled thereto as such address shall appear in the Security Register or
(ii) transfer to an account of the Person entitled thereto located inside the United States;
provided further, however, that, with respect to any Holder of Securities with an aggregate
principal amount in excess of $1,000,000, at the application of such Holder in writing to the
Company, interest on such Holder’s Securities shall be paid by wire transfer in immediately
available funds to such Holder’s account in the United States supplied by such Holder from time to
time to the Trustee and Paying Agent (if different from the Trustee) not later than the applicable
record date.

          Reference is made to the further provisions of this Security set forth on the reverse hereof,
including, without limitation, provisions giving the Holder of this Security the right to convert
this Security into Common Shares of the Company on the terms and subject to the limitations
referred to on the reverse hereof and as more fully specified in the Indenture. Such further
provisions shall for all purposes have the same effect as though fully set forth at this place.

          This Security shall be deemed to be a contract made under the laws of the State of New York,
and for all purposes shall be construed in accordance with the laws of the State of New York
applicable to contracts entered into and to be performed therein.

Exh. A-2

 

          This Security shall not be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been manually signed by the Trustee or a duly authorized
authenticating agent under the Indenture.

[Remainder of page intentionally left blank]

Exh. A-3

 

     Unless the certificate of authentication hereon has been executed by or on behalf of the
Trustee by manual signature, this Security shall not be entitled to any benefit under the Indenture
or be valid or obligatory for any purpose.

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

	 	 	 	 	 
	 	PROLOGIS

 	 
	 	By:  	 	 
	 	 	Name:  	[_____] 	 
	 	 	Title:  	[_____] 	 
	 

	 	 	 	 	 
	Attest

 	 	 
	By:  	 	 	 
	 	Name:  	[_____] 	 	 
	 	Title:  	[_____] 	 	 
	 

Dated: [___], 20[___]

TRUSTEE’S CERTIFICATE OF AUTHENTICATION:

     This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

	 	 	 	 	 
	U.S. BANK NATIONAL ASSOCIATION,

as successor trustee

 	 	 
	By:  	 	 	 
	 	Authorized Officer 	 	 
	 	 	 	 
	 

Exh. A-4

 

[FORM OF REVERSE OF NOTE]

PROLOGIS

3.25% Convertible Senior Notes due 2015

          This Security is one of a duly authorized issue of Securities of the Company, designated as
its 3.25% Convertible Senior Notes due 2015 (herein called the “Securities”), issued under and
pursuant to an Indenture dated as of March 1, 1995, as supplemented with respect to the Securities
by the Second Supplemental Indenture, dated as of November 2, 2005, the Ninth Supplemental
Indenture, dated as of October 1, 2009 and the Tenth Supplemental Indenture, dated as of March 16,
2010 (as so supplemented, herein called the “Indenture”), between the Company and U.S. Bank
National Association (herein called the “Trustee”), to which Indenture and all indentures
supplemental thereto reference is hereby made for a description of the rights, limitations of
rights, obligations, duties and immunities thereunder of the Trustee, the Company and the Holders
of the Securities. Additional Securities may be issued in an unlimited aggregate principal amount,
subject to certain conditions specified in the Indenture. Capitalized terms used but not defined
herein shall have the meanings ascribed to them in the Indenture.

          In case an Event of Default, as defined in the Indenture, shall have occurred and be
continuing, the principal of and interest on all Securities may be declared, and upon said
declaration shall become, due and payable, in the manner, with the effect and subject to the
conditions provided in the Indenture.

          Prior to March 15, 2015, the Company may not redeem the Securities except to preserve the
Company’s status as a real estate investment trust as described in Section 3.01 of the Tenth
Supplemental Indenture. Any such redemption shall be upon at least 30 days’ and no more than 60
days’ notice to Holders of the Securities.

          Subject to the terms and conditions of the Indenture, the Company will make all payments and
deliveries in respect of the Fundamental Change Repurchase Price, the Redemption Price and the
principal amount on the Maturity Date, as the case may be, to the Holder who surrenders a Security
to a Paying Agent to collect such payments in respect of the Security. The Company will pay cash
amounts in money of the United States that at the time of payment is legal tender for payment of
public and private debts.

          The Indenture contains provisions permitting the Company and the Trustee in certain
circumstances, without the consent of the Holders of the Securities, and in other circumstances,
with the consent of the Holders of not less than a majority in principal amount of the Securities
at the time Outstanding, evidenced as in the Indenture provided, to execute supplemental indentures
adding any provisions to or changing in any manner or eliminating any of the provisions of the
Indenture or of any supplemental indenture or modifying in any manner the rights of the Holders of
the Securities; provided, however, that no such supplemental indenture shall make any of the
changes set forth in Section 6.02 of the Tenth Supplemental Indenture, without the consent of each
Holder of an Outstanding Security affected thereby. It is

Exh. A-5

 

also provided in the Indenture that, prior to any declaration accelerating the maturity of the
Securities, the Holders of a majority in principal amount of the Securities at the time Outstanding
may on behalf of the Holders of all of the Securities waive any past default or Event of Default
under the Indenture and its consequences except as provided in the Indenture. Any such consent or
waiver by the Holder of this Security (unless revoked as provided in the Indenture) shall be
conclusive and binding upon such Holder and upon all future Holders and owners of this Security and
any Securities which may be issued in exchange or substitution hereof, irrespective of whether or
not any notation thereof is made upon this Security or such other Securities.

          No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and accrued and unpaid interest on this Security at the place, at the respective
times, at the rate and in the lawful money herein prescribed.

          The Securities are issuable in registered form without coupons in denominations of $1,000
principal amount and integral multiples thereof. At the office or agency of the Company referred
to on the face hereof, and in the manner and subject to the limitations provided in the Indenture,
without payment of any service charge but with payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in connection with any registration or exchange of
Securities, Securities may be exchanged for a like aggregate principal amount of Securities of
other authorized denominations.

          The Securities are not subject to redemption through the operation of any sinking fund.
Section 1004, Section 1006, Section 1007 and Section 1011 of the Indenture shall not apply to the
Securities.

          Upon the occurrence of a Fundamental Change, the Holder has the right, at such Holder’s
option, to require the Company to repurchase all of such Holder’s Securities or any portion thereof
(in principal amounts of $1,000 or integral multiples thereof) on the Fundamental Change Repurchase
Date at a price equal to 100% of the principal amount of the Securities such holder elects to
require the Company to repurchase, together with accrued and unpaid interest to but excluding the
Fundamental Change Repurchase Date. The Company or, at the written request of the Company, the
Trustee shall mail to all Holders of record of the Securities a notice of the occurrence of a
Fundamental Change and of the repurchase right arising as a result thereof on or before the
twentieth day after the occurrence of any Fundamental Change.

          Subject to the provisions of the Indenture, the Holder hereof has the right, at its option, at
any time prior to the close of business on the Trading Day immediately preceding the Maturity Date,
to convert any Securities or portion thereof which is $1,000 or an integral multiple thereof, into
Common Shares at the Conversion Rate specified in the Indenture, as adjusted from time to time as
provided in the Indenture, upon surrender of this Security, together with a Notice of Conversion, a
form of which is attached to this Security, as provided in the Indenture and this Security, to the
Company at the office or agency of the Company maintained for that purpose in the Borough of
Manhattan, City of New York or elsewhere as provided in the Indenture, and, unless the shares
issuable on conversion are to be issued in the same name as this Security, duly endorsed by, or
accompanied by instruments of transfer in form satisfactory to the Company duly executed by, the
Holder or by his duly authorized attorney. The initial

Exh. A-6

 

Conversion Rate is 57.8503 shares for each $1,000 principal amount of Securities. No
fractional Common Shares will be issued upon any conversion, but an adjustment in cash will be paid
to the Holder, as provided in the Indenture, in respect of any fraction of a share which would
otherwise be issuable upon the surrender of any Security or Securities for conversion. No
adjustment shall be made for dividends or any shares issued upon conversion of such Security except
as provided in the Indenture.

          Upon due presentment for registration of transfer of this Security at the office or agency of
the Company in the Borough of Manhattan, City of New York, a new Security or Securities of
authorized denominations for an equal aggregate principal amount will be issued to the transferee
in exchange thereof, subject to the limitations provided in the Indenture, without charge except
for any tax, assessments or other governmental charge imposed in connection therewith.

          The Company, the Trustee, any authenticating agent, any Paying Agent, any Conversion Agent and
any Security Registrar may deem and treat the registered Holder hereof as the absolute owner of
this Security (whether or not this Security shall be overdue and notwithstanding any notation of
ownership or other writing hereon), for the purpose of receiving payment hereof, or on account
hereof, for the conversion hereof and for all other purposes, and neither the Company nor the
Trustee nor any other authenticating agent nor any Paying Agent nor any other Conversion Agent nor
any Security Registrar shall be affected by any notice to the contrary. All payments made to or
upon the order of such registered Holder shall, to the extent of the sum or sums paid, satisfy and
discharge liability for monies payable on this Security.

          No recourse for the payment of the principal of, or accrued and unpaid interest on, this
Security, or for any claim based hereon or otherwise in respect hereof, and no recourse under or
upon any obligation, covenant or agreement of the Company in the Indenture or any indenture
supplemental thereto or in any Security, or because of the creation of any indebtedness represented
thereby, shall be had against any incorporator, stockholder, employee, agent, officer, trustee,
director or subsidiary, as such, past, present or future, of the Company or of any successor
corporation, either directly or through the Company or any successor corporation, whether by virtue
of any constitution, statute or rule of law or by the enforcement of any assessment or penalty or
otherwise, all such liability being, by the acceptance hereof and as part of the consideration for
the issue hereof, expressly waived and released.

          Terms used in this Security and defined in the Indenture are used herein as therein defined.

          Customary abbreviations may be used in the name of a Holder or an assignee, such as TEN COM
(=tenants in common), TENANT (=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 gift to Minors
Act).

Exh. A-7

 

Schedule I

PROLOGIS

3.25% Convertible Senior Notes due 2015

     No.                     

	 	 	 	 	 	 	 
	 	 	 	 	Notation Explaining	 	Authorized Signature
	 	 	 	 	Principal Amount	 	of Trustee or
	Date	 	Principal Amount	 	Recorded	 	Custodian
	 	 	 	 	 	 	 

Exh. A-8

 

Schedule I

FORM OF CONVERSION NOTICE

To: PROLOGIS

          The undersigned registered owner of this Security hereby exercises the option to convert this
Security, or the portion hereof (which is $1,000 principal amount or an integral multiple thereof)
below designated, into Common Shares in accordance with the terms of the Indenture referred to in
this Security, and directs that the shares issuable and deliverable upon such conversion together
with any check in payment of the cash in respect of fractional shares and any Securities
representing any unconverted principal amount hereof, be issued and delivered to the registered
holder hereof unless a different name has been indicated below. If shares or any portion of this
Security not converted are to be issued in the name of a person other than the undersigned, the
undersigned will pay all transfer taxes payable with respect thereto. Any amount required to be
paid to the undersigned on account of interest accompanies this Security.

	 	 	 
	Dated:                     
	 	 
	 
	 	 
	 

	 	 
	 

	 	 
	 

	 	Signature(s)
	 
	 	 
	 
 

	 	 
	Signature Guarantee
	 	 

Signature(s) must be guaranteed by an eligible
Guarantor Institution (banks, stock brokers,
savings and loan associations and credit unions)
with membership in an approved signature guarantee
medallion program pursuant to Rule 17Ad-15 under
the Securities Exchange Act of 1934, as amended,
if Common Shares are to be issued, or Securities
to be delivered, other than to and in the name of
the registered holder.

Exh. A-9

 

Fill in for registration of shares if to be
issued, and Securities if to be delivered, other
than to and in the name of the registered holder:

			
	 	 	 
	 

 

	 	 
	(Name)	 	 
	 	 	 
	  

(Street
Address)
	 	 
	 	 	 
	  

(City,
State and Zip Code)
	 	 
	 	 	 
	  

Please
print name and address
	 	 

	 	 	 
	 

	 	Principal amount to be converted (if less
than all): $___,000
	 
	 	 
	 

	 	 
	 

	 	 
	 

	 	Social Security or Other Taxpayer Identification Number

Exh. A-10

 

FORM OF FUNDAMENTAL CHANGE REPURCHASE NOTICE

          To: PROLOGIS

          The undersigned registered owner of this Security hereby acknowledges receipt of a notice from
ProLogis (the “Company”) as to the occurrence of a Fundamental Change with respect to the Company
and requests and instructs the Company to repay the entire principal amount of this Security, or
the portion thereof (which is $1,000 principal amount or an integral multiple thereof) below
designated, in accordance with the terms of the Indenture referred to in this Security, to the
registered holder hereof.

	 	 	 
	Dated:                     
	 	 
	 

	 	 
	 

	 	 
	 

	 	Signature(s)
	 
	 	 
	 

	 	 
	 

	 	 
	 

	 	Social Security or Other Taxpayer
Identification Number Principal amount to
be repaid (if less than all): $___,000
	 

	 	NOTICE:
	 

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

Exh. A-11

 

FORM OF ASSIGNMENT AND TRANSFER

          For
value received __________ hereby sell(s), assign(s) and transfer(s) unto __________
(Please insert social security or Taxpayer Identification Number of assignee) the within Security,
and hereby irrevocably constitutes and appoints
__________ attorney to transfer the said Security
on the books of the Company, with full power of substitution in the premises.

	 	 	 
	Dated:                     

	 	 
	 
	 	 
	 
 

	 	 
	Signature(s)
	 	 
	 
	 	 
	 
 

	 	 
	Signature Guarantee
	 	 

Signature(s) must be guaranteed by an eligible
Guarantor Institution (banks, stock brokers,
savings and loan associations and credit unions)
with membership in an approved signature guarantee
medallion program pursuant to Rule 17Ad-15 under
the Securities Exchange Act of 1934, as amended,
if Common Shares are to be issued, or Securities
to be delivered, other than to and in the name of
the registered holder.

NOTICE: The signature on the conversion notice, the option to elect repurchase upon a Fundamental
Change or the assignment must correspond with the name as written upon the face of the Security in
every particular without alteration or enlargement or any change whatever.

Exh. A-12

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