Document:

Exhibit 4.2

Exhibit 4.2

 

XILINX, INC.

as Issuer

AND

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

as Trustee

 

Indenture

Dated as of June 9, 2010

 

2.625% Convertible Senior Notes due 2017

 

 

 

TABLE OF CONTENTS

 

	 	 	 	 	 
	 	 	Page	 
	 
	ARTICLE 1

Definitions and Other Provisions of General Application
	 	 	 	 
	 
	 	 	 	 
	Section 1.01. Definitions
	 	 	1	 
	Section 1.02. Form of Documents Delivered to Trustee
	 	 	12	 
	Section 1.03. Acts of Holders; Record Dates
	 	 	13	 
	Section 1.04. Notices, Etc., to Trustee and Company
	 	 	14	 
	Section 1.05. Notice to Holders; Waiver
	 	 	14	 
	 
	 	 	 	 
	ARTICLE 2

Security Forms

	 
	 	 	 	 
	Section 2.01. Forms Generally
	 	 	15	 
	Section 2.02. Form of Face of Security
	 	 	15	 
	Section 2.03. Form of Reverse of Security
	 	 	19	 
	Section 2.04. Form of Trustee’s Certificate of Authentication
	 	 	28	 
	Section 2.05. Legend on Restricted Securities
	 	 	28	 
	 
	 	 	 	 
	ARTICLE 3

The Securities

	 
	 	 	 	 
	Section 3.01. Title and Terms; Payments
	 	 	28	 
	Section 3.02. Denominations
	 	 	29	 
	Section 3.03. Execution, Authentication, Delivery and Dating
	 	 	29	 
	Section 3.04. Temporary Securities
	 	 	30	 
	Section 3.05. Registration; Registration of Transfer and Exchange;
Restrictions On Transfer
	 	 	30	 
	Section 3.06. Mutilated, Destroyed, Lost and Stolen Securities
	 	 	33	 
	Section 3.07. Persons Deemed Owners
	 	 	34	 
	Section 3.08. Book-entry Provisions for Global Securities
	 	 	34	 
	Section 3.09. Cancellation and Transfer Provisions
	 	 	36	 
	Section 3.10. CUSIP Numbers
	 	 	37	 
	 
	 	 	 	 
	ARTICLE 4

Interest

	 
	 	 	 	 
	Section 4.01. Generally
	 	 	37	 

 

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	 	 	Page	 
	 
	ARTICLE 5

Covenants

	 
	 	 	 	 
	Section 5.01. Payments
	 	 	39	 
	Section 5.02. Maintenance of Office or Agency
	 	 	39	 
	Section 5.03. Appointments to Fill Vacancies in Trustee’s Office
	 	 	40	 
	Section 5.04. Provisions as to Paying Agent
	 	 	40	 
	Section 5.05. Existence
	 	 	41	 
	Section 5.06. Rule 144A Information Requirement
	 	 	41	 
	Section 5.07. Commission Filings and Reports
	 	 	42	 
	Section 5.08. Additional Interest
	 	 	42	 
	Section 5.09. Stay; Extension and Usury Laws
	 	 	42	 
	Section 5.10. Compliance Certificate
	 	 	43	 
	Section 5.11. Further Instruments and Acts
	 	 	43	 
	 
	 	 	 	 
	ARTICLE 6

Fundamental Changes and Repurchases Thereupon

	 
	 	 	 	 
	Section 6.01. Repurchase at Option of Holders upon a Fundamental Change
	 	 	43	 
	Section 6.02. Effect of Fundamental Change Repurchase Notice
	 	 	46	 
	Section 6.03. Withdrawal of Fundamental Change Repurchase Notice
	 	 	47	 
	Section 6.04. Deposit of Fundamental Change Repurchase Price
	 	 	47	 
	Section 6.05. Securities Repurchased in Whole or in Part
	 	 	48	 
	Section 6.06. Covenant to Comply With Securities Laws Upon Repurchase of Securities
	 	 	48	 
	Section 6.07. Repayment to The Company
	 	 	48	 
	Section 6.08. Purchase by Third Party
	 	 	48	 
	 
	 	 	 	 
	ARTICLE 7

Conversion

	 
	 	 	 	 
	Section 7.01. Right to Convert
	 	 	49	 
	Section 7.02. Conversion Procedures
	 	 	51	 
	Section 7.03. Adjustment of Conversion Rate
	 	 	54	 
	Section 7.04. Shares to be Fully Paid
	 	 	64	 
	Section 7.05. Adjustments of Prices
	 	 	64	 
	Section 7.06. Adjustments upon Certain Fundamental Changes
	 	 	64	 
	Section 7.07. Effect of Recapitalization, Reclassification,
Consolidation, Merger or Sale
	 	 	66	 
	Section 7.08. Certain Covenants
	 	 	67	 
	Section 7.09. Responsibility of Trustee
	 	 	68	 
	Section 7.10. Notice to Holders Prior to Certain Actions
	 	 	69	 
	Section 7.11. Stockholder Rights Plans
	 	 	69	 
	Section 7.12. Exchange in Lieu of Conversion
	 	 	70	 
	 
	 	 	 	 
	ARTICLE 8

Events of Default; Remedies

	 
	 	 	 	 
	Section 8.01. Events of Default
	 	 	71	 
	Section 8.02. Acceleration of Maturity; Rescission and Annulment
	 	 	72	 
	Section 8.03. Additional Interest
	 	 	73	 
	Section 8.04. Collection of indebtedness and Suits For Enforcement by Trustee
	 	 	75	 

 

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	 	 	Page	 
	 
	Section 8.05. Trustee May File Proofs of Claim
	 	 	75	 
	Section 8.06. Application of Money Collected
	 	 	76	 
	Section 8.07. Limitation on Suits
	 	 	76	 
	Section 8.08. Unconditional Right of Holders to Receive Payment
	 	 	77	 
	Section 8.09. Restoration of Rights and Remedies
	 	 	77	 
	Section 8.10. Rights and Remedies Cumulative
	 	 	77	 
	Section 8.11. Delay or Omission Not Waiver
	 	 	77	 
	Section 8.12. Control by Holders
	 	 	78	 
	Section 8.13. Waiver of Past Defaults
	 	 	78	 
	Section 8.14. Undertaking for Costs
	 	 	78	 
	Section 8.15. Waiver of Stay or Extension Laws
	 	 	79	 
	Section 8.16. Violations of Certain Covenants
	 	 	79	 
	 
	 	 	 	 
	ARTICLE 9

Consolidation, Merger, Conveyance, Transfer or Lease

	 
	 	 	 	 
	Section 9.01. Company May Consolidate, Etc., Only on Certain Terms
	 	 	79	 
	Section 9.02. Successor Substituted
	 	 	79	 
	 
	 	 	 	 
	ARTICLE 10

The Trustee

	 
	 	 	 	 
	Section 10.01. Duties and Responsibilities of Trustee
	 	 	80	 
	Section 10.02. Notice of Defaults.
	 	 	81	 
	Section 10.03. Reliance on Documents, Opinions, Etc.
	 	 	81	 
	Section 10.04. No Responsibility for Recitals, Etc.
	 	 	83	 
	Section 10.05. Trustee, Paying Agents, Conversion Agents or
Registrar May Own Securities
	 	 	83	 
	Section 10.06. Monies to be Held in Trust
	 	 	83	 
	Section 10.07. Compensation and Expenses of Trustee
	 	 	83	 
	Section 10.08. Conflicting Interests of Trustee
	 	 	84	 
	Section 10.09. Eligibility of Trustee
	 	 	84	 
	Section 10.10. Resignation or Removal of Trustee
	 	 	84	 
	Section 10.11. Acceptance by Successor Trustee
	 	 	86	 
	Section 10.12. Succession by Merger, Etc.
	 	 	86	 
	Section 10.13. Preferential Collection of Claims
	 	 	87	 
	 
	 	 	 	 
	ARTICLE 11

Holders’ Lists and Reports by Trustee

	 
	 	 	 	 
	Section 11.01. Company to Furnish Trustee Names and Addresses of Holders
	 	 	87	 
	Section 11.02. Preservation of Information; Communications to Holders
	 	 	87	 
	Section 11.03. Reports by Trustee
	 	 	88	 

 

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	 	 	Page	 
	 
	ARTICLE 12

Satisfaction and Discharge

	 
	 	 	 	 
	Section 12.01. Satisfaction and Discharge of Indenture
	 	 	88	 
	Section 12.02. Application of Trust Money
	 	 	89	 
	Section 12.03. Paying Agent to Repay Monies Held
	 	 	89	 
	Section 12.04. Return of Unclaimed Monies
	 	 	89	 
	Section 12.05. Reinstatement
	 	 	89	 
	 
	 	 	 	 
	ARTICLE 13

Supplemental Indentures

	 
	 	 	 	 
	Section 13.01. Without Consent of Holders
	 	 	90	 
	Section 13.02. Supplemental Indentures With Consent of Holders
	 	 	91	 
	Section 13.03. Execution of Supplemental Indentures
	 	 	92	 
	Section 13.04. Effect of Supplemental Indentures
	 	 	92	 
	Section 13.05. Conformity with Trust Indenture Act
	 	 	92	 
	Section 13.06. Reference in Securities to Supplemental Indentures
	 	 	92	 
	Section 13.07. Notice to Holders of Supplemental Indentures
	 	 	92	 
	 
	 	 	 	 
	ARTICLE 14

Miscellaneous

	 
	 	 	 	 
	Section 14.01. Trust Indenture Act Controls
	 	 	92	 
	Section 14.02. Notices
	 	 	93	 
	Section 14.03. Communication by Holders with other Holders
	 	 	93	 
	Section 14.04. Certificate and Opinion as to Conditions Precedent
	 	 	94	 
	Section 14.05. Statements Required in Certificate or Opinion
	 	 	94	 
	Section 14.06. Rules by Trustee, Paying Agent and Registrar
	 	 	94	 
	Section 14.07. Legal Holidays
	 	 	94	 
	Section 14.08. Conflict with Trust Indenture Act
	 	 	95	 
	Section 14.09. Successors
	 	 	95	 
	Section 14.10. Table of Contents; Headings
	 	 	95	 
	Section 14.11. Severability Clause
	 	 	95	 
	Section 14.12. U.S.A. Patriot Act
	 	 	95	 
	Section 14.13. Execution in Counterparts
	 	 	95	 
	Section 14.14. Calculations
	 	 	96	 
	Section 14.15. Governing Law
	 	 	96	 
	Section 14.16. Waiver of Jury Trial
	 	 	96	 
	Section 14.17. Force Majeure
	 	 	96	 
	Section 14.18. Benefits of Indenture
	 	 	96	 
	Section 14.19. No Recourse Against Others
	 	 	96	 

 

iv

 

INDENTURE, dated as of June 9, 2010, between Xilinx, Inc., a corporation duly organized and
existing under the laws of the State of Delaware, as Issuer (the “Company”), having its principal
office at 2100 Logic Drive, San Jose, California 95124 and The Bank of New York Mellon Trust
Company, N.A., as Trustee (the “Trustee”).

RECITALS OF THE COMPANY

WHEREAS, the Company has duly authorized the creation of an issue of 2.625% Convertible Senior
Notes due 2017 (each a “Security” and collectively, the “Securities”) of the tenor and amount
hereinafter set forth, and to provide therefor the Company has duly authorized the execution and
delivery of this Indenture; and

WHEREAS, all things necessary to make the Securities, when executed by the Company and
authenticated and delivered hereunder and duly issued by the Company, the valid and legally binding
obligations of the Company, and to make this Indenture a valid and legally binding agreement of the
Company, in accordance with the terms of the Securities and the Indenture, have been done;

NOW, THEREFORE, THIS INDENTURE WITNESSETH, for and in consideration of the premises and the
purchases of the Securities by the Holders thereof, it is mutually agreed, for the benefit of the
Company and the equal and proportionate benefit of all Holders of the Securities, as follows:

ARTICLE 1

Definitions and Other Provisions of General Application

Section 1.01. Definitions. For all purposes of this Indenture, except as otherwise
expressly provided or unless the context otherwise requires:

(i) the terms defined in this Article 1 have the meanings assigned to them in this
Article and include the plural as well as the singular;

(ii) all other terms used herein that are defined in the Trust Indenture Act, either
directly or by reference therein, have the meanings assigned to them therein;

(iii) all accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with GAAP; and

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

 

 

 

“Act” when used with respect to any Holder, has the meaning specified in Section 1.03.

“Additional Interest” means all amounts payable, if any pursuant to Section 8.03 hereof.

“Additional Securities” means any Securities (other than the Initial Securities) issued under
this Indenture in accordance with Section 3.01 hereof, as part of the same series and with the same
CUSIP number as the Initial Securities.

“Additional Shares” has the meaning specified in Section 7.06(a).

“Adjustment Determination Date” has the meaning specified in Section 7.03(j).

“Adjustment Event” has the meaning specified in Section 7.03(j).

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

“Agent Members” has the meaning specified in Section 3.08.

“Bid Solicitation Agent” means the agent appointed by the Company to solicit market bid
quotations for the Securities, which shall in no event be an Affiliate of the Company.

“Board of Directors” means, with respect to any Person, either the board of directors of such
Person or any duly authorized committee of that board.

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

“Business Day” means any day other than a Saturday, a Sunday or a day on which the Federal
Reserve Bank of New York is authorized or required by law or executive order to close or be closed.

“Capital Stock” means any and all shares, interests, participations, rights or other
equivalents (however designated) of corporate stock and, with respect to partnerships or limited
liability companies, partnership interests (whether general or limited), limited liability company
interests and any other interest or
participation that confers on a Person the right to receive a share of the profits and losses
of, or distributions of assets of, such partnership or limited liability company.

 

2

 

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

“Code” means the Internal Revenue Code of 1986, as amended.

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

“Common Stock” means the shares of common stock, par value $0.01 per share, of the Company as
they exist on the date of this Indenture or any other shares of Capital Stock of the Company into
which the Common Stock shall be reclassified or changed or, in the event of a merger, consolidation
or other similar transaction involving the Company that is otherwise permitted hereunder in which
the Company is not the surviving corporation, the common stock, common equity interests, ordinary
shares or depositary shares or other certificates representing common equity interests of such
surviving corporation or its direct or indirect parent corporation.

“Company” means the Person named as the “Company” in the first paragraph of this instrument
until a successor Person shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Company” shall mean such successor Person.

“Company Request” or “Company Order” means a written request or order signed in the name of
the Company by any of its Chairman of the Board of Directors, its Vice Chairman of the Board of
Directors, its Chief Executive Officer, its President or any Vice President, its Chief Financial
Officer, its Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary and
delivered to the Trustee.

“Conversion Agent” means the Trustee or such other office or agency designated by the Company
where Securities may be presented for conversion.

“Conversion Date” has the meaning specified in Section 7.02(f).

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

“Conversion Rate” has the meaning specified in Section 7.01(a).

 

3

 

“Corporate Trust Office” means the office of the Trustee at which the corporate trust business
of the Trustee shall, at any particular time, be principally
administered, which office is, at the date of this Indenture, located at The Bank of New York
Mellon Trust Company, N.A., 700 South Flower Street, Suite 500, Los Angeles, California 90017,
Attention: Corporate Trust Administration, and shall mean for purposes of Section 5.02 c/o The
Bank of New York Mellon, 101 Barclay Street, New York, New York 10286, Attention: Corporate Trust
Administration.

“Corporation” means a corporation, association, company, joint-stock company or business
trust.

“Custodian” means The Bank of New York Mellon Trust Company, N.A., as custodian with respect
to the Securities in global form, or any successor entity.

“Daily Conversion Value” has the meaning specified in Section 7.02.

“Daily Settlement Amount” has the meaning specified in Section 7.02.

“Daily VWAP” means, for each of the 30 consecutive Trading Days during the Observation Period,
the per share volume-weighted average price as displayed under the heading “Bloomberg VWAP” on
Bloomberg page “XLNX.UQ <equity> AQR” (or its equivalent successor if such page is not
available) in respect of the period from the scheduled open of trading until the scheduled close of
trading of the primary trading session on such Trading Day (or if such volume-weighted average
price is unavailable, the market value of one share of Common Stock on such Trading Day determined,
using a volume-weighted average method, by a nationally recognized independent investment banking
firm retained for such purpose by the Company), provided, that after consummation of a transaction
described in clause (2) of the definition of Fundamental Change in which the consideration is
comprised entirely of cash, the Daily VWAP will be deemed to be the cash price per share received
by holders of the Common Stock in such Fundamental Change.

“Default” means any event that is or with the passage of time or the giving of notice or both
would become an Event of Default.

“Depositary” means The Depository Trust Company until a successor Depositary shall have become
such pursuant to the applicable provisions of this Indenture, and thereafter “Depositary” shall
mean such successor Depositary.

“Designated Institution” has the meaning specified in Section 7.12(a).

“Effective Date” has the meaning specified in Section 7.03(f).

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

“Ex Date” means, with respect to any dividend, distribution or issuance on the Common Stock or
any other equity security, the first date on which the shares of Common Stock or such other equity
security trade on the applicable
exchange or in the applicable market, regular way, without the right to receive such issuance,
dividend or distribution in question from the Company either directly or indirectly through due
bills.

 

4

 

“Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended.

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

(1) a “person” or “group” within the meaning of Section 13(d) of the Exchange Act other than
the Company, its Subsidiaries and the Company’s and its Subsidiaries’ employee benefit plans, files
a Schedule TO or any schedule, form or report under the Exchange Act disclosing that such person or
group has become the direct or indirect ultimate “beneficial owner,” as defined in Rule 13d-3 under
the Exchange Act, of the Common Stock representing more than 50% of the total voting power of all
shares of the Company’s Capital Stock entitled to vote generally in elections of directors;

(2) consummation of (A) any recapitalization, reclassification or change of the Common Stock
(other than changes resulting from a subdivision or combination of the Common Stock) as a result of
which the Common Stock would be converted into, or exchanged for, stock, other securities, other
property or assets or (B) any share exchange, consolidation or merger of the Company pursuant to
which the Common Stock will be converted into cash, securities or other property or any sale, lease
or other transfer in one transaction or a series of transactions of all or substantially all of the
consolidated assets of the Company and its Subsidiaries, taken as a whole, to any Person other than
the Company or one or more of the Company’s Subsidiaries; provided, however that a transaction
pursuant to which (i) the Common Stock is not changed or exchanged except to the extent necessary
to reflect a change in the Company’s jurisdiction of incorporation or (ii) the holders of more than
50% of all classes of the Company’s common equity immediately prior to such transaction own,
directly or indirectly, more than 50% of the aggregate voting power of all shares of Capital Stock
of the continuing or surviving corporation or transferee or the parent thereof immediately after
such event shall not be a Fundamental Change;

(3) the Company’s stockholders approve any plan or proposal for the liquidation or dissolution
of the Company; or

(4) the Common Stock, or other common stock into which the Securities are then convertible,
ceases to be listed or quoted on any of The New York Stock Exchange, The NASDAQ Global Select
Market or The NASDAQ Global Market (or any of their respective successors).

 

5

 

Notwithstanding the foregoing, a Fundamental Change as a result of clause (2) above will not
be deemed to have occurred if at least 90% of the
consideration received or to be received by holders of Common Stock (excluding cash payments
for fractional shares and cash payments made in respect of dissenters’ rights) in connection with
the transaction or transactions otherwise constituting the Fundamental Change consists of Publicly
Traded Securities and, as a result of such transaction or transactions, the Securities become
convertible into such Publicly Traded Securities and cash as described in Section 7.07.

“Fundamental Change Company Notice” has the meaning specified in Section 6.01(b).

“Fundamental Change Repurchase Date” has the meaning specified in Section 6.01(a).

“Fundamental Change Repurchase Notice” has the meaning specified in Section 6.01(a)(i).

“Fundamental Change Repurchase Price” has the meaning specified in Section 6.01(a).

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

“Global Security” means a Security in global form registered in the Security Register in the
name of a Depositary or a nominee thereof.

“Holder” means a Person in whose name a Security is registered in the Security Register.

“Indenture” means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof.

“Initial Conversion Rate” has the meaning specified in Section 7.03.

“Initial Dividend Threshold” has the meaning specified in Section 7.03(d).

“Initial Purchasers” means J.P. Morgan Securities Inc. and Deutsche Bank Securities Inc.

“Initial Securities” means Securities in an aggregate Principal Amount of $520,000,000,
initially issued under this Indenture.

 

6

 

“Interest” means (i) Regular Interest and (ii) Additional Interest, if any.

“Interest Payment Date” means each June 15 and December 15 of each year, beginning December
15, 2010.

“Issue Date” means the date Securities are originally issued as set forth on the face of such
Security under this Indenture.

“Last Reported Sale Price” means, on any date, the closing sale price per share of the Common
Stock (or if no closing sale price is reported, the average of the bid and ask prices or, if more
than one in either case, the average of the average bid and the average ask prices) on that date as
reported in composite transactions for the principal U.S. securities exchange on which the Common
Stock is listed for trading. If the Common Stock is not listed for trading on a U.S. national or
regional securities exchange on such date, the “Last Reported Sale Price” will be the last quoted
bid price for the Common Stock in the over-the-counter market on the relevant date as reported by
Pink OTC Markets Inc. or a similar organization. If the Common Stock is not so quoted, the “Last
Reported Sale Price” will be the average of the mid-point of the last bid and ask prices for the
Common Stock on the relevant date from each of at least three nationally recognized independent
investment banking firms (which may include any of the Initial Purchasers) selected by the Company
for this purpose.

“Legal Holiday” has the meaning specified in Section 14.07.

“Make-Whole Effective Date” has the meaning specified in Section 7.06(b).

“Make-Whole Fundamental Change” means any transaction or event that constitutes a Fundamental
Change described in clause (1) or (2) of the definition thereof (but without regard to proviso (ii)
in clause (2) of the definition thereof)

“Make-Whole Fundamental Change Notice” has the meaning specified in Section 7.06(e).

“Market Disruption Event” has the meaning specified in Section 7.02(d).

“Maturity,” when used with respect to any Security, means the date on which the principal or
Fundamental Change Repurchase Price of such Security becomes due and payable as therein or herein
provided, whether at the Stated Maturity or on a Fundamental Change Repurchase Date, by declaration
of acceleration or otherwise.

“Measurement Period” has the meaning specified in Section 7.01(a).

 

7

 

“National Securities Exchange” means a securities exchange that has registered with the
Commission under Section 6 of the Exchange Act, or any successor provision.

“Notice of Conversion” has the meaning specified in Section 7.02(e).

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

“Observation Period” with respect to any Security surrendered for conversion means the 30
consecutive Trading Day period beginning on and including the second Trading Day after the related
Conversion Date, except that with respect to any conversion date occurring during the period
beginning on or after March 15, 2017, Observation Period means the first 30 Trading Days beginning
on and including the 32nd Scheduled Trading Day prior to the Stated Maturity of the Securities.

“Officers’ Certificate” means a certificate signed by any two of the Chairman of the Board of
Directors, the President, any Vice President, the Treasurer, an Assistant Treasurer, the Secretary
or an Assistant Secretary, in each case of the Company, and delivered to the Trustee. One of the
officers signing an Officers’ Certificate given pursuant to Section 5.10 shall be the principal
executive, financial or accounting officer of the Company.

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

“Opinion of Counsel” means a written opinion of counsel, who may be external or in-house
counsel for the Company, and who shall be reasonably acceptable to the Trustee.

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

(i) Securities theretofore cancelled by the Trustee or accepted by the Trustee for
cancellation;

(ii) Securities, or portions thereof, for whose payment or repurchase money in the
necessary amount has been theretofore deposited with the Trustee or any Paying Agent
(other than the Company) in trust or set aside and segregated in trust by the Company (if
the Company shall act as its own Paying Agent) for the Holders of such Securities;
provided that if such Securities are to be repurchased prior to the Maturity thereof,
notice of such repurchase shall have been given to the Holders as herein provided, or
provision satisfactory to a Responsible Officer of the Trustee shall have been made for
giving such notice;

 

8

 

(iii) Securities that have been paid or in exchange for or in lieu of which other
Securities have been authenticated and delivered pursuant to this Indenture; and

(iv) Securities converted into Common Stock pursuant to Article 7;

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

“Paying Agent” means any Person (including the Company) authorized by the Company to pay the
Principal Amount of, Interest on, or Fundamental Change Repurchase Price of, any Securities on
behalf of the Company. The Trustee shall initially be the Paying Agent.

“Person” means any individual, Corporation, partnership, limited liability company, joint
venture, trust, unincorporated organization or government or any agency or political subdivision
thereof.

“Physical Securities” means permanent certificated Securities in registered form issued in
denominations of $2,000 Principal Amount and multiples of $1,000 in excess thereof.

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

“Publicly Traded Securities” means shares of Common Stock that are listed or quoted on any of
The New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or any of
their respective successors) or which will be so listed or quoted when issued or exchanged.

“Purchase Agreement” means the Purchase Agreement, dated June 3, 2010, entered into by the
Company and the Initial Purchasers in connection with the sale of the Securities.

 

9

 

“Qualified Institutional Buyer” or “QIB” shall have the meaning specified in Rule 144A.

“Record Date” means, with respect to any payment of Interest on the Securities, the Close of
Business on each June 1 and December 1, as the case may be, immediately preceding the relevant
Interest Payment Date (whether or not a Business Day).

“Reference Property” and “Unit of Reference Property” have the meaning specified in Section
7.07(a).

“Regular Interest” has the meaning specified in Section 4.01(a).

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

“Restricted Security” or “Restricted Securities” has the meaning specified in Section 2.05.

“Rule 144” means Rule 144 under the Securities Act (including any successor rule thereto), as
the same may be amended from time to time.

“Rule 144A” means Rule 144A under the Securities Act (including any successor rule thereto),
as the same may be amended from time to time.

“Rule 144A Information” has the meaning specified in the Securities.

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

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

“Security” or “Securities” has the meaning specified in the first paragraph of the Recitals to
this Indenture, and includes any Security or Securities, as the case may be, authenticated and
delivered under this Indenture, including any Global Security. The Initial Securities and the
Additional Securities shall be treated as a single class and have the same CUSIP number for
purposes of this Indenture.

 

10

 

“Security Register” and “Security Registrar” have the respective meanings specified in
Section 3.05.

“Settlement Amount” has the meaning specified in Section 7.02.

“Significant Subsidiary” means a Subsidiary of the Company that would be a “significant
subsidiary” as defined in Article I, Rule 1-02(w) of Regulation S-X, promulgated pursuant to the
Securities Act, as such Regulation is in effect on the date hereof.

“Spin-Off” has the meaning specified in Section 7.03(c).

“Stated Maturity,” when used with respect to any Security, means the date specified in such
Security as the fixed date on which an amount equal to the Principal Amount of such Security
together with accrued and unpaid Interest, if any, is due and payable.

“Stock Price” means, with respect to the Common Stock in connection with a Make-Whole
Fundamental Change, (i) if holders of Common Stock receive only cash in a Make-Whole Fundamental
Change described in clause (2) of the definition of Fundamental Change, the cash amount paid per
share of Common Stock or (ii) if holders of Common Stock receive any consideration other than cash
in such Make-Whole Fundamental Change or if a Make-Whole Fundamental Change occurs other than a
Make-Whole Fundamental Change described in clause (2) of the definition of Fundamental Change, the
average of the Last Reported Sales Prices of the Common Stock over the five Trading Day period
ending on, and including, the Trading Day immediately preceding the effective date of such
Make-Whole Fundamental Change.

“Subsidiary” means a Corporation more than 50% of the outstanding voting stock of which is
owned, directly or indirectly, by the Company or by one or more other Subsidiaries, or by the
Company and one or more other Subsidiaries. For the purposes of this definition, “voting stock”
means stock which ordinarily has voting power for the election of directors, whether at all times
or only so long as no senior class of stock has such voting power by reason of any contingency.

“Surviving Entity” has the meaning specified in Section 9.01(a).

“Trading Day” means a day on which (i) trading of the Common Stock generally occurs on The
NASDAQ Global Select Market or, if the Common Stock is not then listed on The NASDAQ Global Select
Market, on the principal other United States national or regional securities exchange on which the
Common Stock is then listed or, if the Common Stock is not then listed on a United States national
or regional securities exchange, on the principal other market on which the Common Stock is then
traded, and (ii) a Last Reported Sale Price for the Common Stock is available on such securities
exchange or market. If the Common Stock (or other security for which the closing sale price must
be determined) is not so listed or traded, “Trading Day” means any Business Day.

 

11

 

“Trading Price” of the Securities on any date of determination means the average of the
secondary market bid quotations obtained by the Bid Solicitation Agent for $5,000,000 Principal
Amount of Securities at approximately 3:30 p.m., New York City time, on such determination date
from three independent nationally recognized securities dealers that are selected by the Company
(which may include any of the Initial Purchasers); provided that if at least three such bids cannot
reasonably be obtained by the Bid Solicitation Agent, but two such bids are obtained, then the
average of the two bids shall be used, and if only one such bid can reasonably be obtained, that
one bid shall be used. If the Bid Solicitation Agent cannot reasonably obtain at least one such
bid for $5,000,000 Principal Amount of Securities from an independent nationally recognized
securities dealer then the Trading Price per $1,000 Principal Amount of Securities will be deemed
to be less than 98% of the product of the Last Reported Sale Price of the Common Stock and the
applicable Conversion Rate.

“Trading Price Condition” has the meaning specified in Section 7.01(a)(ii).

“Trust Indenture Act” means the Trust Indenture Act of 1939 as in effect on the date as of
which this Indenture was executed; provided, however, that in the event the Trust Indenture Act of
1939 is amended after such date, “Trust Indenture Act” means, to the extent required by any such
amendment, the Trust Indenture Act of 1939 as so amended.

“Trustee” means the Person named as the “Trustee” in the first paragraph of this instrument
until a successor Trustee shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Trustee” shall mean such successor Trustee.

“Valuation Period” has the meaning specified in Section 7.03(c).

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

Section 1.02. Form of Documents Delivered to Trustee. In any case where several matters are
required to be certified by, or covered by an opinion of, any specified Person, it is not necessary
that all such matters be certified by, or covered by the opinion of, only one such Person, or that
they be so certified or covered by only one document, but one such Person may certify or give an
opinion with respect to some matters and one or more other such Persons as to other matters, and
any such Person may certify or give an opinion as to such matters in one or several documents.

 

12

 

Any certificate or opinion of an officer of the Company may be based, insofar as it relates to
legal matters, upon a certificate or opinion of, or representations by, counsel, unless such
officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations with respect
to the matters upon which his certificate or opinion is based are erroneous. Any such certificate
or Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate or
opinion of, or representations by, an officer or officers of the Company stating that the
information with respect to such factual matters is in the possession of the Company, unless such
counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion
or representations with respect to such matters are erroneous.

Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Indenture, they may,
but need not, be consolidated and form one instrument.

Section 1.03. Acts of Holders; Record Dates. (a) Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture to be given or taken
by Holders may be embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Holders in person or by agent duly appointed in writing and, except as herein
otherwise expressly provided, such action shall become effective when such instrument or
instruments are delivered to the Trustee and, where it is hereby expressly required, to the
Company. Such instrument or instruments (and the action embodied therein and evidenced thereby)
are herein sometimes referred to as an “Act” of the Holders signing such instrument or instruments.
Proof of execution of any such instrument or of a writing appointing any such agent shall be
sufficient for any purpose of this Indenture and (subject to Section 10.01) conclusive in favor of
the Trustee and the Company, if made in the manner provided in this Section.

(b) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by a certificate of a notary public or
other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to him the execution thereof. Where such execution
is by a signer acting in a capacity other than his individual capacity, such certificate or
affidavit shall also constitute sufficient proof of his authority. The fact and date of the
execution of any such instrument or writing, or the authority of the Person executing the same, may
also be proved in any other manner which the Trustee reasonably deems sufficient.

(c) The Company may, in the circumstances permitted by the Trust Indenture Act, fix any day as
the record date for the purpose of determining the Holders entitled to give or take any request,
demand, authorization, direction, notice, consent, waiver or other action, or to vote on any
action, authorized or permitted to be given or taken by Holders. If not set by the Company prior
to the first solicitation of a Holder made by any Person in respect of any such action, or, in the
case of any such vote, prior to such vote, the record date for any such action or vote shall be the
30th day (or, if later, the date of the most recent list of Holders
required to be provided pursuant to Section 11.01) prior to such first solicitation or vote,
as the case may be. With regard to any record date, only the Holders on such date (or their duly
designated proxies) shall be entitled to give or take, or vote on, the relevant action.

 

13

 

(d) The ownership of Securities shall be proved by the Security Register.

(e) Any request, demand, authorization, direction, notice, consent, waiver or other Act of the
Holder of any Security shall bind every future Holder of the same Security and the Holder of every
Security issued upon the registration of transfer thereof or in exchange therefor or in lieu
thereof in respect of anything done, omitted or suffered to be done by the Trustee or the Company
in reliance thereon, whether or not notation of such action is made upon such Security.

Section 1.04. Notices, Etc., to Trustee and Company.Any request, demand, authorization,
direction, notice, consent, waiver or Act of Holders or other document provided or permitted by
this Indenture to be made upon, given or furnished to, or filed with:

(a) the Trustee by any Holder or by the Company shall be sufficient for every purpose
hereunder if made, given, furnished or filed in writing (including facsimile) to or with
the Trustee at its applicable Corporate Trust Office; or

(b) the Company by the Trustee or by any Holder shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) if in writing (including facsimile)
and mailed, first-class postage prepaid (unless facsimile), to the Company addressed to it
at the address of its principal office specified in the first paragraph of this instrument
or at any other address previously furnished in writing to the Trustee by the Company,
Attention: General Counsel.

Section 1.05. Notice to Holders; Waiver.Where this Indenture provides for notice to
Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly
provided) if in writing and mailed, first-class postage prepaid, to each Holder affected by such
event, at such Holder’s address as it appears in the Security Register, not later than the latest
date (if any), and not earlier than the earliest date (if any), prescribed for the giving of such
notice. In any case where notice to Holders is given by mail, neither the failure to mail such
notice, nor any defect in any notice so mailed, to any particular Holder shall affect the
sufficiency of such notice with respect to other Holders. Where this Indenture provides for notice
in any manner, such notice may be waived in writing by the Person entitled to receive such notice,
either before or after the event, and such waiver shall be the equivalent of such notice. Waivers
of notice by Holders shall be filed with the Trustee, but such filing shall not be a condition
precedent to the validity of any action taken in reliance upon such waiver.

 

14

 

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

Whenever under this Indenture the Trustee is required to provide any notice by mail, in all
cases the Trustee may alternatively provide notice by overnight courier or by telefacsimile, with
confirmation of transmission.

ARTICLE 2

Security Forms

Section 2.01. Forms Generally. The Securities and the Trustee’s certificates of
authentication shall be in substantially the forms set forth in this Article, with such appropriate
insertions, omissions, substitutions and other variations as are required or permitted by this
Indenture, and may have such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with the rules of any securities exchange
or Depositary therefor, the Code and regulations thereunder, or as may, consistently herewith, be
determined by the officers executing such Securities, as evidenced by their execution thereof.

The Securities shall initially be issued in the form of permanent Global Securities in
registered form in substantially the form set forth in this Article. The aggregate Principal
Amount of the Global Securities may from time to time be increased or decreased by adjustments made
on the records of the Trustee, as custodian for the Depositary, as hereinafter provided.

Section 2.02. Form of Face of Security. [INCLUDE IF SECURITY IS A RESTRICTED SECURITY —
THIS SECURITY AND THE COMMON STOCK, IF ANY, ISSUED UPON CONVERSION OF THIS SECURITY HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE
OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE FOLLOWING SENTENCE.
BY ITS ACQUISITION HEREOF OR A BENEFICIAL INTEREST HEREIN, THE ACQUIRER: (1) REPRESENTS THAT IT AND
ANY ACCOUNT FOR WHICH IT IS ACTING IS A “QUALIFIED INSTITUTIONAL BUYER” (WITHIN THE MEANING OF RULE
144A UNDER THE SECURITIES ACT) AND THAT IT EXERCISES SOLE INVESTMENT DISCRETION WITH RESPECT TO
EACH SUCH ACCOUNT, AND (2) AGREES FOR THE BENEFIT OF THE COMPANY THAT IT WILL NOT OFFER, SELL,
PLEDGE OR OTHERWISE TRANSFER THIS SECURITY OR ANY BENEFICIAL INTEREST HEREIN, PRIOR TO THE DATE
THAT IS THE LATER OF (X) ONE YEAR AFTER THE LAST ORIGINAL ISSUE DATE HEREOF OR SUCH SHORTER PERIOD
OF TIME AS PERMITTED BY RULE 144 UNDER

 

15

 

THE SECURITIES ACT OR ANY SUCCESSOR PROVISION THERETO AND (Y) SUCH LATER DATE, IF ANY, AS MAY
BE REQUIRED BY APPLICABLE LAW, EXCEPT (A) TO XILINX, INC. (THE “COMPANY”) OR ANY SUBSIDIARY
THEREOF, OR (B) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BECOME EFFECTIVE UNDER THE
SECURITIES ACT, OR (C) TO A QUALIFIED INSTITUTIONAL BUYER (IN COMPLIANCE WITH RULE 144A UNDER THE
SECURITIES ACT), OR (D) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE
SECURITIES ACT OR ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT. PRIOR TO THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH (2)(D) ABOVE, THE
COMPANY AND THE TRUSTEE RESERVE THE RIGHT TO REQUIRE THE DELIVERY OF SUCH LEGAL OPINIONS,
CERTIFICATIONS OR OTHER EVIDENCE AS MAY REASONABLY BE REQUIRED IN ORDER TO DETERMINE THAT THE
PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE WITH THE SECURITIES ACT AND APPLICABLE STATE
SECURITIES LAWS. NO REPRESENTATION IS MADE AS TO THE AVAILABILITY OF ANY EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.]

[INCLUDE IF SECURITY IS A GLOBAL SECURITY — THIS SECURITY IS A GLOBAL SECURITY WITHIN THE
MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED,
AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON
OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN
THE INDENTURE.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (“DTC”), A NEW YORK CORPORATION, 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 IN AS
MUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

 

16

 

2.625% Convertible Senior Notes due 2017

	 	 	 	 	 
	No.                     

	 	CUSIP NO. 983919 AE1 U.S.
	 	$                    

Xilinx, Inc., a corporation duly organized and validly existing under the laws of the State of
Delaware (herein called the “Company”), which term includes any successor corporation 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                      ($                    ) (which
amount may from time to time be increased or decreased by adjustments made on the records of the
Trustee, as custodian for the Depositary, in accordance with the rules and procedures of the
Depositary) on June 15, 2017. The Principal Amount of this Security shall be payable at the
Corporate Trust Office and at any other office or agency maintained for such purpose and at any
other office or agency maintained by the Company for such purpose. Interest on this Security will
be payable (i) to Holders having an aggregate Principal Amount of $5,000,000 or less of Securities,
by check mailed to such Holders and (ii) to Holders having an aggregate Principal Amount of more
than $5,000,000 of Securities, either by check mailed to such Holders or, upon application by a
Holder to the Security Registrar not later than the relevant Record Date for such Interest payment,
by wire transfer in immediately available funds to such Holder’s account within the United States.

The Issue Date of this Security is June 9, 2010.

Reference is made to the further provisions of this Security set forth on the reverse hereof,
including, without limitation, provisions giving the Holder the right to convert this Security into
Common Stock of the Company and to require the Company to repurchase this Security upon certain
events, in each case, 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. Capitalized terms used but not defined
herein shall have such meanings as are ascribed to such terms in the Indenture.

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 and governed by the laws of said State.

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.

 

17

 

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

	 	 	 	 	 
	XILINX, INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized Signatory
	 	 

 

18

 

Section 2.03. Form of Reverse of Security.

XILINX, INC.

2.625% Convertible Senior Notes due 2017

This Security is one of a duly authorized issue of Securities of the Company, designated as
its 2.625% Convertible Senior Notes due 2017 (the “Securities”), all issued or to be issued under
and pursuant to an Indenture dated as of June 9, 2010 (the “Indenture”), between the Company and
The Bank of New York Mellon Trust Company, N.A. (the “Trustee”), to which the 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.

Interest. The Securities will bear Regular Interest at a rate of 2.625% per year.
Interest on the Securities will accrue from June 9, 2010, payable semi-annually in arrears on June
15 and December 15 of each year, beginning on December 15, 2010, and at Maturity. Pursuant to
Section 8.03 of the Indenture, in certain circumstances, the Holders shall be entitled to receive
Additional Interest.

Except as otherwise provided in Section 4.01(c) of the Indenture, Interest will be paid to the
Person in whose name a Security is registered at the Close of Business on June 1 or December 1, as
the case may be, immediately preceding the relevant Interest Payment Date. Interest on the
Securities will be computed on the basis of a 360-day year composed of twelve 30-day months.

Redemption at the Option of the Company. The Securities will not be redeemable at the
option of the Company.

Repurchase by the Company at the Option of the Holder Upon a Fundamental Change.
Subject to the terms and conditions of the Indenture, the Company shall become obligated, at the
option of the Holder, to repurchase the Securities if a Fundamental Change occurs at any time prior
to the Stated Maturity at 100% of the Principal Amount plus accrued and unpaid Interest (subject to
Section 4.01(c)(ii) of the Indenture) to, but excluding, the Fundamental Change Repurchase Date
(the “Fundamental Change Repurchase Price”), which Fundamental Change Repurchase Price will be paid
in cash. If the Fundamental Change Repurchase Date is between a regular Record Date and the
Interest Payment Date to which it relates, the Company will instead pay the full amount of accrued
and unpaid Interest to the Holder of record on such regular Record Date.

Withdrawal of Fundamental Change Repurchase Notice. Holders have the right to
withdraw, in whole or in part, any Fundamental Change Repurchase Notice by delivering to the Paying
Agent a written notice of withdrawal in accordance with the provisions of the Indenture.

 

19

 

Payment of Fundamental Change Repurchase Price. If cash sufficient to pay the
Fundamental Change Repurchase Price of all Securities or portions thereof to be repurchased on a
Fundamental Change Repurchase Date is deposited with the Paying Agent on the Fundamental Change
Repurchase Date such Securities will cease to be Outstanding and Interest will cease to accrue on
such Securities (or portions thereof) immediately after such Fundamental Change Repurchase Date and
the Holder thereof shall have no other rights as such (other than the right to receive the
Fundamental Change Repurchase Price upon surrender of such Security).

Conversion. Subject to and in compliance with the provisions of the Indenture
(including without limitation the conditions of conversion of this Security set forth in Article 7
thereof), the Holder hereof has the right, at its option, to convert the Principal Amount hereof or
any portion of such principal which is $1,000 or a multiple thereof, into, subject to Section 7.01
of the Indenture, cash and shares of Common Stock, if any, at the Conversion Rate. The initial
Conversion Rate is 33.0164 shares of Common Stock per $1,000 Principal Amount of Securities
(equivalent to a Conversion Price of approximately $30.29), subject to adjustment in certain events
described in the Indenture. Upon conversion, the Company shall deliver, for each $1,000 Principal
Amount of Securities being converted, cash and shares of Common Stock, if any, based on a
Settlement Amount in accordance with the Indenture. No fractional shares will be issued upon any
conversion, but an adjustment and payment in cash will be made, as provided in the Indenture, in
respect of any fraction of a share which would otherwise be issuable upon the surrender of any
Securities for conversion. Securities in respect of which a Holder is exercising its right to
require repurchase on a Fundamental Change Repurchase Date may be converted only if such Holder
withdraws its election to exercise such right in accordance with the terms of the Indenture.

In the event of a deposit or withdrawal of an interest in this Security, including an
exchange, transfer, repurchase or conversion of this Security in part only, the Trustee, as
custodian of the Depositary, shall make an adjustment on its records to reflect such deposit or
withdrawal in accordance with the rules and procedures of the Depositary.

Subject to certain limitations in the Indenture, at any time when the Company is not subject
to Section 13 or 15(d) of the United States Securities Exchange Act of 1934, as amended, upon the
request of a Holder of a Restricted Security, the Company will promptly furnish or cause to be
furnished Rule 144A Information (as defined below) to such Holder of Restricted Securities, or to a
prospective purchaser of any such security designated by any such Holder, to the extent required to
permit compliance by any such Holder with Rule 144A under the Securities Act of 1933, as amended
(the “Securities Act”). “Rule 144A Information” shall be such information as is specified pursuant
to Rule 144A(d)(4) under the Securities Act (or any successor provision thereto).

 

20

 

If an Event of Default shall occur and be continuing, the Principal Amount plus Interest
through such date on all the Securities may be declared due and payable in the manner and with the
effect provided in the Indenture.

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities under the Indenture at any time by the Company and the Trustee with the consent of the
Holders of not less than a majority in aggregate Principal Amount of the Outstanding Securities.
The Indenture also contains provisions permitting the Holders of specified percentages in aggregate
Principal Amount of the Outstanding Securities, on behalf of the Holders of all the Securities, to
waive compliance by the Company with certain provisions of the Indenture and certain past Defaults
under the Indenture and their consequences. Any such consent or waiver by the Holder of any
provision of or applicable to this Security shall be conclusive and binding upon such Holder and
upon all future Holders of this Security and of any Security issued upon the registration of
transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Security.

As provided in and subject to the provisions of the Indenture, the Holder of this Security
shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall
have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities, the Holders of not less than 25% in aggregate Principal Amount of the Outstanding
Securities shall have made written request to the Trustee to institute proceedings in respect of
such Event of Default as Trustee and offered the Trustee reasonable indemnity satisfactory to it,
the Trustee shall not have received from the Holders of a majority in Principal Amount of
Outstanding Securities a direction inconsistent with such request, and the Trustee shall have
failed to institute any such proceeding, for 60 days after receipt of such notice, request and
offer of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this
Security for the enforcement of any payment of the Principal Amount, Fundamental Change Repurchase
Price hereof on or after the respective due dates expressed herein or to convert the Securities in
accordance with Article 7 of the Indenture.

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 Amount, Fundamental Change Repurchase Price of, and Interest on, this Security at the
times, place and rate, and in the coin or currency, herein prescribed.

 

21

 

As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the
Company in The City of New York, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Company and the Security Registrar duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities,
of authorized denominations and for the same aggregate Principal Amount, will be issued to the
designated transferee or transferees.

The Securities are issuable only in registered form in denominations of $2,000 and any
multiple of $1,000 in excess thereof, as provided in the Indenture and subject to certain
limitations therein set forth. Securities are exchangeable for a like aggregate Principal Amount
of Securities of a different authorized denomination, as requested by the Holder surrendering the
same.

No service charge shall be made for any such registration of transfer or exchange, but the
Company and the Security Registrar may require payment of a sum sufficient to cover any tax or
other governmental charge payable in connection therewith.

Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and the Security Registrar and any agent of the Company or the Trustee may treat the Person
in whose name this Security is registered as the owner hereof for all purposes, whether or not this
Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by
notice to the contrary.

This Security shall be governed by and construed in accordance with the laws of the State of
New York, without regard to conflicts of laws principles thereof.

All terms used in this Security that are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

 

22

 

XILINX, INC.

ASSIGNMENT FORM

If you want to assign this Security, fill in the form below and have your signature
guaranteed:

I or we assign and transfer this Security to:

 

 

 

(Print or type name, address and zip code and social security or tax ID number of assignee)

and irrevocably appoint
 _____ 

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

	 	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Signed:	 	 	 	 
	 

	 	 

	 	 
	 	 
	 	 

	 	 

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

	 	 	 	 	 
	Signature Guarantee:
	 	 	 	 
	 

	 	 

	 	 

Note: Signatures must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Security Registrar, which requirements include membership or participation in
the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program”
as may be determined by the Security Registrar in addition to, or in substitution for, STAMP, all
in accordance with the Securities Exchange Act of 1934, as amended.

 

23

 

In connection with any transfer of this Security occurring prior to the date which is the
later of (i) one year after the last Issue Date of the Securities or such shorter period of time
permitted by Rule 144 under the Securities Act, as amended (the “Securities Act”), or any successor
provision thereto and (ii) such later date, if any, as may be required by applicable law, the
undersigned confirms that it has not utilized any general solicitation or general advertising in
connection with the transfer and that this Security is being transferred:

[Check One]

	 	 	 	 	 
	(1)

	 	o
	 	to the Company or a subsidiary thereof; or
	 
	 	 	 	 
	(2)

	 	o
	 	to a “Qualified Institutional Buyer” pursuant to and in
compliance with Rule 144A under the Securities Act;
	 
	 	 	 	 
	(3)

	 	o
	 	pursuant to the exemption from registration provided by
Rule 144 under the Securities Act; or
	 
	 	 	 	 
	(4)

	 	o
	 	pursuant to any other exemption from the registration
requirements of the Securities Act.

Unless one of the above boxes is checked, the Trustee will refuse to register any of the Securities
evidenced by this certificate in the name of any Person other than the registered Holder thereof,
provided that if box (3) or (4) is checked, the Company and the Trustee may require, prior to
registering any such transfer of the Securities, in their sole discretion, such legal opinions,
certifications and other information as may reasonably be required in order to determine that such
transfer is being made pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act and applicable state securities laws.

If none of the foregoing boxes is checked, the Trustee or Security Registrar shall not be
obligated to register this Security in the name of any Person other than the Holder hereof unless
and until the conditions to any such transfer of registration set forth herein and in Section 3.09
of the Indenture shall have been satisfied.

	 	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Signed:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

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

	 	 	 	 	 
	Signature Guarantee:
	 	 	 	 
	 

	 	 

	 	 

Note: Signatures must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Security Registrar, which requirements include membership or participation in
the Security Transfer Agent Medallion Program

(“STAMP”) or such other “signature guarantee program” as may be determined by the Security
Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities
Exchange Act of 1934, as amended.

 

24

 

TO BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED

The undersigned represents and warrants that it is purchasing this Security for its own
account or an account with respect to which it exercises sole investment discretion and that it and
any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the
Securities Act and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as the undersigned has
requested pursuant to Rule 144A or has determined not to request such information and that it is
aware that the transferor is relying upon the undersigned’s foregoing representations in order to
claim the exemption from registration provided by Rule 144A.

	 	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Signed:	 	 	 	 
	 

	 	 

	 	 
	 	 
	 	 

	 	 

NOTICE: To be executed by an executive officer.

 

25

 

XILINX, INC.

NOTICE OF CONVERSION

If you want to convert this Security into Common Stock of the Company, check the box: o

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

$                                                            

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

 

(Insert other person’s social security or tax ID no.)

 

 

 

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

	 	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Signed:	 	 	 	 
	 

	 	 

	 	 
	 	 
	 	 

	 	 

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

	 	 	 	 	 
	Signature Guarantee:
	 	 	 	 
	 

	 	 

	 	 

Note: Signatures must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Security Registrar, which requirements include membership or participation in
the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program”
as may be determined by the Security Registrar in addition to, or in substitution for, STAMP, all
in accordance with the Securities Exchange Act of 1934, as amended.

 

26

 

XILINX, INC.

FORM OF FUNDAMENTAL CHANGE REPURCHASE NOTICE

_______________, ____

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

700 South Flower Street, Suite 500

Los Angeles, CA 90017

Attention: Corporate Trust Department

	 	 	 
	Re:

	 	Xilinx, Inc. (the “Company”)
	 

	 	2.625% Convertible Senior Notes due 2017

This is a Fundamental Change Repurchase Notice as defined in Section 6.01(a) of the Indenture dated
as of June 9, 2010 (the “Indenture”) between the Company and The Bank of New York Mellon Trust
Company, N.A., as Trustee. Terms used but not defined herein shall have the meanings ascribed to
them in the Indenture.

	 	 	 	 	 
	Certificate No(s). of Securities:

	 	 	 	 

I intend to deliver the following aggregate Principal
Amount of Securities for purchase by the Company pursuant to
Section 6.01 of the Indenture (in multiples of $1,000):

$                                                            

I hereby agree that the Securities will be purchased as of the Fundamental Change Repurchase
Date pursuant to the terms and conditions thereof and of the Indenture.

	 	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Signed:	 	 	 	 
	 

	 	 

	 	 
	 	 
	 	 

	 	 

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

	 	 	 	 	 
	Signature Guarantee:
	 	 	 	 
	 

	 	 

	 	 

Note: Signatures must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Security Registrar, which requirements include membership or participation in
the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program”
as may be determined by the Security Registrar in addition to, or in substitution for, STAMP, all
in accordance with the Securities Exchange Act of 1934, as amended.

 

27

 

Section 2.04. Form of Trustee’s Certificate of Authentication. This is one of the Securities
referred to in the within-mentioned Indenture.

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

	 	By	 	 	 	 
	 

	 	 	 	 

Authorized Signatory
	 	 

Section 2.05. Legend on Restricted Securities. During the period beginning on the last Issue
Date and ending on the date one year from such date, any Security, including any Security issued in
exchange therefor or in lieu thereof, shall be deemed a “Restricted Security” and shall be subject
to the restrictions on transfer provided in the legends set forth on the face of the form of
Security in Section 2.02; provided, however, that the term “Restricted Security” shall not include
any Securities as to which restrictions have been terminated in accordance with Section 3.05. All
Securities shall bear the applicable legends set forth on the face of the form of Security in
Section 2.02. Except as provided in Section 3.05 and Section 3.09, the Trustee shall not issue
any unlegended Security until it has received an Officers’ Certificate from the Company directing
it to do so.

ARTICLE 3

The Securities

Section 3.01. Title and Terms; Payments. The aggregate Principal Amount of Securities that
may be authenticated and delivered under this Indenture is initially limited to $520,000,000 (or up
to $600,000,000 to the extent the Initial Purchasers exercise their overallotment option granted
pursuant to the Purchase Agreement), except for Securities authenticated and delivered upon
registration or transfer of, or in exchange for, or in lieu of, other Securities pursuant to
Sections 2.05, 3.04, 3.05, 3.06, 6.05 or 13.06. The Company may, from time to time after the
execution of this Indenture, execute and deliver to the Trustee for authentication Additional
Securities of an unlimited aggregate Principal Amount, and the Trustee shall thereupon authenticate
and deliver said Additional Securities to or upon the written order of the Company, without any
further action by the Company hereunder; provided however that the Company may issue Additional
Securities only if: (1) such Additional Securities and Initial Securities are treated as fungible
for purposes of U.S. federal income tax laws; (2) such Additional Securities have the same CUSIP
number as the Initial Securities; and (3) the Trustee receives an Officers’ Certificate to the
effect that such
issuance of Additional Securities complies with the provisions of this Indenture, including
each provision of this paragraph.

 

28

 

The Securities shall be known and designated as the “2.625% Convertible Senior Notes due 2017”
of the Company. The Principal Amount shall be payable at the Stated Maturity.

The Principal Amount of and Interest on Global Securities registered in the name of The
Depository Trust Company or its nominee shall be paid by wire transfer in immediately available
funds to The Depository Trust Company or its nominee, as applicable.

The Principal Amount of Physical Securities shall be payable at the Corporate Trust Office and
at any other office or agency maintained for such purpose and at any other office or agency
maintained by the Company for such purpose. Interest on Physical Securities will be payable (i) to
Holders having an aggregate Principal Amount of $5,000,000 or less of Securities, by check mailed
to such Holders at the address set forth in the Security Register and (ii) to Holders having an
aggregate Principal Amount of more than $5,000,000 of Securities, either by check mailed to such
Holders or, upon application by a Holder to the Security Registrar not later than the relevant
Record Date for such Interest payment, by wire transfer in immediately available funds to such
Holder’s account within the United States, which application shall remain in effect until the
Holder notifies the Security Registrar to the contrary in writing.

Section 3.02. Denominations. The Securities shall be issuable only in registered form
without coupons and in denominations of $2,000 and any multiple of $1,000 in excess thereof.

Section 3.03. Execution, Authentication, Delivery and Dating. The Securities shall be
executed on behalf of the Company by the Chairman of the Board of Directors, its President, or one
of its Vice Presidents.

Securities bearing the manual or facsimile signatures of individuals who were at any time the
proper officers of the Company shall bind the Company, notwithstanding that such individuals or any
of them have ceased to hold such offices prior to the authentication and delivery of such
Securities or did not hold such offices at the date of such Securities.

At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities executed by the Company to the Trustee for authentication, together
with a Company Order for the authentication and delivery of such Securities. The Company Order
shall specify the amount of Securities to be authenticated, and shall further specify the amount of
such Securities to be issued as a Global Security or as Physical Securities. If Physical
Securities are to be authenticated, such Company Order shall also specify the Holders of, and
delivery instructions for, such Securities. The Trustee in
accordance with such Company Order shall authenticate and deliver such Securities as in this
Indenture provided and not otherwise.

 

29

 

Each Security shall be dated the date of its authentication.

No Security shall be entitled to any benefit under this Indenture or be valid or obligatory
for any purpose unless there appears on such Security a certificate of authentication substantially
in the form provided for herein executed by the Trustee by manual signature, and such certificate
upon any Security shall be conclusive evidence, and the only evidence, that such Security has been
duly authenticated and delivered hereunder.

Section 3.04. Temporary Securities. Pending the preparation of definitive Securities, the
Company may execute, and upon Company Order the Trustee shall authenticate and deliver, temporary
Securities that are printed, lithographed, typewritten, mimeographed or otherwise produced, in any
authorized denomination, substantially of the tenor of the definitive Securities in lieu of which
they are issued and with such appropriate insertions, omissions, substitutions and other variations
as the officers executing such Securities may determine, as evidenced by their execution of such
Securities; provided, that any such temporary Securities shall bear legends (other than the Global
Security legend) on the face of such Securities as set forth in Section 2.02.

If temporary Securities are issued, the Company will cause definitive Securities to be
prepared without unreasonable delay. After the preparation of definitive Securities, the temporary
Securities shall be exchangeable for definitive Securities upon surrender of the temporary
Securities at any office or agency of the Company designated pursuant to Section 5.02, without
charge to the Holder. Upon surrender for cancellation of any one or more temporary Securities, the
Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a like
Principal Amount of Physical Securities of authorized denominations. Until so exchanged, the
temporary Securities shall in all respects be entitled to the same benefits under this Indenture as
Physical Securities.

Section 3.05. Registration; Registration of Transfer and Exchange; Restrictions On Transfer.
(a) The Company shall cause to be kept at the applicable Corporate Trust Office of the Trustee a
register (the register maintained in such office and in any other office or agency designated
pursuant to Section 5.02 being herein sometimes collectively referred to as the “Security
Register”) in which, subject to such reasonable regulations as it may prescribe, the Company shall
provide for the registration of Securities and transfers of Securities. The Trustee is hereby
appointed “Security Registrar” (the “Security Registrar”) for the purpose of registering Securities
and transfers of Securities as herein provided.

 

30

 

Upon surrender for registration of transfer of any Security at an office or agency of the
Company designated pursuant to Section 5.02 for such purpose, the
Company shall execute, and the Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Securities of any authorized denominations
and of a like aggregate Principal Amount and tenor, each such Security bearing such restrictive
legends as may be required by this Indenture (including Sections 2.02, 2.05 and 3.09).

At the option of the Holder and subject to the other provisions of this Section 3.05 and to
Section 3.09, Securities may be exchanged for other Securities of any authorized denominations and
of a like aggregate Principal Amount and tenor, upon surrender of the Securities to be exchanged at
such office or agency. Whenever any Securities are so surrendered for exchange, the Company shall
execute, and the Trustee shall authenticate and deliver, the Securities which the Holder making the
exchange is entitled to receive.

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

Every Security presented or surrendered for registration of transfer or for exchange shall (if
so required by the Company or the Trustee) be duly endorsed, or be accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security Registrar duly
executed, by the Holder thereof or his attorney duly authorized in writing. As a condition to the
registration of transfer of any Restricted Securities, the Company or the Trustee may require
evidence satisfactory to them as to the compliance with the restrictions set forth in the legend on
such securities.

Except as provided in the following sentence and in Section 3.09, all Securities originally
issued hereunder and all Securities issued upon registration of transfer or exchange or replacement
thereof shall be Restricted Securities and shall bear the legends required by Sections 2.02 and
2.05, unless the Company shall have delivered to the Trustee (and the Security Registrar, if other
than the Trustee) a Company Order stating that the Security is not a Restricted Security and may be
issued without such legend thereon. Securities that are issued upon registration of transfer of,
or in exchange for, Securities that are not Restricted Securities shall not be Restricted
Securities and shall not bear such legend.

So long as and to the extent that any Securities are represented by one or more Global
Securities held by or on behalf of the Depositary only, the Company may cause the removal of the
legends required by Section 2.02 and Section 2.05 from such Securities at any time on or after the
first anniversary of the last Issue Date of the Securities by:

(i) providing to the Trustee written notice stating that such first anniversary has
occurred and instructing the Trustee to remove the such legends from such Securities;

(ii) providing to the Holders of such Securities written notice that such legends
have been removed or deemed removed;

 

31

 

(iii) providing to the Trustee and the Depositary written notice to change the CUSIP
number for the Securities to the applicable unrestricted CUSIP number; and

(iv) complying with any applicable procedures for delegending in accordance with Rule
144 under the Securities Act and applicable policies of the Commission;

whereupon any legends otherwise required by Sections Section 2.02 and Section 2.05 shall be
deemed removed from any Global Securities without any further action on the part of the Holders.

No service charge shall be made for any registration of transfer or exchange of Securities,
but the Company and the Security Registrar may require payment of a sum sufficient to cover any tax
or other governmental charge that may be imposed in connection with any registration of transfer or
exchange of Securities, other than exchanges pursuant to Section 3.04 not involving any transfer.

Neither the Company nor the Security Registrar shall be required to exchange or register a
transfer of any Security (i) that has been surrendered for conversion or (ii) as to which a
Fundamental Change Repurchase Notice has been delivered and not withdrawn, except that where such
Fundamental Change Repurchase Notice provides that such Security is to be purchased only in part,
the Company and the Security Registrar shall be required to exchange or register a transfer of the
portion thereof not to be purchased.

(b) Beneficial ownership of every Restricted Security shall be subject to the restrictions on
transfer provided in the legends required to be set forth on the face of each Restricted Security
pursuant to Sections 2.02 and 2.05, unless such restrictions on transfer shall be terminated in
accordance with this Section 3.05(b) or Section 3.09. The Holder of each Restricted Security, by
such Holder’s acceptance thereof, agrees to be bound by such restrictions on transfer.

The restrictions imposed by this Section 3.05 and by Sections 2.02, 2.05 and 3.09 upon the
transferability of any particular Restricted Security shall cease and terminate upon delivery by
the Company to the Trustee of an Officers’ Certificate stating that such Restricted Security has
been transferred in compliance with Rule 144 under the Securities Act (or any successor provision
thereto). Any Restricted Security as to which the Company has delivered to the Trustee an
Officers’ Certificate stating that such restrictions on transfer shall have expired in accordance
with their terms or shall have terminated may, upon surrender of such Restricted Security for
exchange to the Security Registrar in accordance with the provisions of this Section 3.05, be
exchanged for a new
Security, of like tenor and aggregate Principal Amount, which shall not bear the restrictive
legends required by Sections 2.02 and 2.05.

 

32

 

As used in the preceding two paragraphs of this Section 3.05, the term “transfer” encompasses
any sale, pledge, transfer or other disposition of any Restricted Security.

(c) Neither the Trustee, the Security Registrar nor any of their respective agents shall (i)
have any duty to monitor compliance with or with respect to any federal or state or other
securities or tax laws or (ii) have any duty to obtain documentation relating to any transfers or
exchanges other than as specifically required hereunder.

(d) Notwithstanding the foregoing, during the period of one year after the last Issue Date of
the Securities, if any of the Securities that constitute “restricted securities” under Rule 144
under the Securities Act have been reacquired by the Company or any of its “affiliates” (as defined
in Rule 144 under the Securities Act), such Securities may not be resold by the Company or such
affiliate, as applicable. Neither the Trustee nor the Securities Registrar shall be charged with
the knowledge of whether such Securities have been reacquired by the Company or its affiliates.

Section 3.06. Mutilated, Destroyed, Lost and Stolen Securities. If any mutilated Security is
surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate and
deliver in exchange therefor a new Security of like tenor and Principal Amount and bearing a number
not contemporaneously Outstanding.

If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction
of the destruction, loss or theft of any Security and (ii) such security or indemnity as may be
required by them to save each of them and any agent of either of them harmless, then, in the
absence of notice to the Company or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and the Trustee shall authenticate and deliver, in lieu of any
such destroyed, lost or stolen Security, a new Security of like tenor and Principal Amount and
bearing a number not contemporaneously Outstanding.

In case any such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable, the Company in its discretion may, instead of issuing a new Security, pay
such Security.

Upon the issuance of any new Security under this Section 3.06, the Company may require
payment by the Holder of a sum sufficient to cover any tax or other governmental charge that may be
imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee)
connected therewith.

 

33

 

Every new Security issued pursuant to this Section 3.06 in lieu of any destroyed, lost or
stolen Security shall constitute an original additional contractual obligation of the Company,
whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone,
and shall be entitled to all the benefits of this Indenture equally and proportionately with any
and all other Securities duly issued hereunder.

The provisions of this Section 3.06 are exclusive and shall preclude (to the extent lawful)
all other rights and remedies with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Securities.

Section 3.07. Persons Deemed Owners. Prior to due presentment of a Security for registration
of transfer, the Company, the Trustee, the Security Registrar and any agent of the Company, the
Trustee or the Security Registrar may treat the Person in whose name such Security is registered as
the owner of such Security for the purpose of receiving payment of the principal of such Security
and for all other purposes whatsoever, whether or not such Security be overdue, and neither the
Company, the Trustee, the Security Registrar nor any agent of the Company, the Trustee or the
Security Registrar shall be affected by notice to the contrary.

Section 3.08. Book-entry Provisions for Global Securities. (a) The Global Securities
initially shall (i) be registered in the name of the Depositary or the nominee of such Depositary,
(ii) be delivered to the Trustee as custodian for the Depositary and (iii) bear legends as set
forth on the face of the form of Security in Section 2.02.

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

 

34

 

(b) Transfers of the Global Securities shall be limited to transfers in whole, but not in
part, to the Depositary, its successors or their respective nominees. Interests of beneficial
owners in a Global Security may be transferred or exchanged, in whole or in part, for Physical
Securities in accordance with the rules and procedures of the Depositary and the provisions of
Section 3.09. In addition, Physical Securities shall be transferred to all beneficial owners in
exchange for their beneficial interests in the Global Securities if (A) such Depositary has
notified the Company that the Depositary (i) is unwilling or unable
to continue as Depositary for such Global Security or (ii) has ceased to be a clearing agency
registered under the Exchange Act when the Depositary is required to be so registered to act as
such Depositary and, in either such case, no successor Depositary shall have been appointed within
90 days of such notification, (B) there shall have occurred and be continuing an Event of Default
with respect to such Global Security and the Outstanding Securities shall have become due and
payable pursuant to Section 8.02 and the Trustee requests that Physical Securities be issued or
(C) the Company, at its option, notifies the Trustee that it elects to cause the issuance of
Physical Securities, subject to applicable procedures of the Depositary; provided that Holders of
Physical Securities offered and sold in reliance on Rule 144A shall have the right, subject to
applicable law, to request that such Securities be exchanged for interests in the applicable Global
Security.

(c) In connection with any transfer or exchange of a portion of the beneficial interest in the
Global Security to beneficial owners pursuant to paragraph (b) above, the Security Registrar shall
(if one or more Physical Securities are to be issued) reflect on its books and records the date and
a decrease in the Principal Amount of the Global Security in an amount equal to the Principal
Amount of the beneficial interest in the Global Security to be transferred, and the Company shall
execute, and the Trustee shall authenticate and deliver, one or more Physical Securities of like
tenor and amount.

(d) In connection with the transfer of the entire Global Security to beneficial owners
pursuant to paragraph (b) above, the Global Security shall be deemed to be surrendered to the
Trustee for cancellation, and the Company shall execute, and the Trustee shall authenticate and
deliver, to each beneficial owner identified by the Depositary in exchange for its beneficial
interest in the Global Security, an equal aggregate Principal Amount of Physical Securities of
authorized denominations and the same tenor.

(e) Any Physical Security constituting a Restricted Security delivered in exchange for an
interest in the Global Security pursuant to paragraph (c) or (d) above shall, except as otherwise
provided by Section 3.05(a) or Section 3.05(b), bear the legend regarding transfer restrictions
applicable to the Physical Securities set forth on the face of the form of Security in Section
2.02.

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

 

35

 

Section 3.09. Cancellation and Transfer Provisions. The Company at any time may deliver to
the Trustee for cancellation any Securities previously authenticated and delivered hereunder that
the Company may have acquired in any manner whatsoever, and may deliver to the Trustee for
cancellation any Securities previously authenticated hereunder which the Company has not issued
and sold. The Trustee shall cancel and dispose of all Securities surrendered for registration
of transfer, exchange, payment, repurchase, conversion (pursuant to Article 7 hereof) or
cancellation in accordance with its customary practices. If the Company shall acquire any of the
Securities, such acquisition shall not operate as a satisfaction of the indebtedness represented by
such Securities unless and until the same are delivered to the Trustee for cancellation. The
Company may not issue new Securities to replace Securities it has paid in full or delivered to the
Trustee for cancellation. Any Securities repurchased by the Company will be retired and cancelled
pursuant to this Section 3.09, and they will deemed no longer to be Outstanding under this
Indenture upon their repurchase.

(a) Transfers to QIBs. The following provisions shall apply with respect to the registration
of any proposed transfer of a Security constituting a Restricted Security to a QIB:

(i) the Security Registrar shall register the transfer if such transfer is being made
by a proposed transferor who has checked the box provided for on the form of Security
stating, or has otherwise advised the Company and the Security Registrar in writing, that
the sale has been made in compliance with the provisions of Rule 144A to a transferee who
has signed the certification provided for on the form of Security stating, or has
otherwise advised the Company and the Security Registrar in writing, that it is purchasing
the Security for its own account or an account with respect to which it exercises sole
investment discretion and that it and any such account is a QIB within the meaning of Rule
144A, and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as it has
requested pursuant to Rule 144A or has determined not to request such information and that
it is aware that the transferor is relying upon its foregoing representations in order to
claim the exemption from registration provided by Rule 144A; and

(ii) if the proposed transferee is an Agent Member, and the Securities to be
transferred consist of Physical Securities which after transfer are to be evidenced by an
interest in the Global Security, upon receipt by the Security Registrar of instructions
given in accordance with the Depositary’s and the Security Registrar’s procedures, the
Security Registrar shall reflect on its books and records the date and an increase in the
Principal Amount of the Global Security in an amount equal to the Principal Amount of the
Physical Securities to be transferred, and the Trustee shall cancel the Physical
Securities so transferred.

(b) Private Placement Legend. Upon the registration of transfer, exchange or replacement of
Securities not bearing the legends required by Sections 2.02 and 2.05, the Security Registrar shall
deliver Securities that do not bear such legends. Except as otherwise provided pursuant to Section
3.05(a) or Section 3.05(b), upon the registration of transfer, exchange or replacement of
Securities bearing the legends required by Sections 2.02 and 2.05, the Security Registrar
shall deliver only Securities that bear such legends unless there is delivered to the Security
Registrar an Opinion of Counsel reasonably satisfactory to the Company and the Trustee to the
effect that neither such legend nor the related restrictions on transfer are required in order to
maintain compliance with the provisions of the Securities Act.

 

36

 

(c) General. By its acceptance of any Security bearing the legends required by Sections 2.02
and 2.05, each Holder of such a Security acknowledges the restrictions on transfer of such Security
set forth in this Indenture and in such legends and agrees that it will transfer such Security only
as provided in this Indenture.

The Security Registrar shall retain, in accordance with its customary procedures, copies of
all letters, notices and other written communications received pursuant to this Section 3.09. The
Company shall have the right to inspect and make copies of all such letters, notices or other
written communications at any reasonable time upon the giving of reasonable written notice to the
Security Registrar.

Section 3.10. CUSIP Numbers. In issuing the Securities, the Company may use “CUSIP” numbers
(if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in repurchase notices
as a convenience to Holders; provided that any such notice may state that no representation is made
as to the correctness of such numbers either as printed on the Securities or as contained in any
repurchase notice and that reliance may be placed only on the other identification numbers printed
on the Securities, and any such repurchase shall not be affected by any defect in or omission of
such numbers. The Company will promptly notify the Trustee of any change in the “CUSIP” numbers.

ARTICLE 4

Interest

Section 4.01. Generally.

(a) Regular interest (“Regular Interest”) shall accrue on the Securities from June 9, 2010 at
a rate of 2.625% per annum until the principal thereof is paid or made available for payment.
Regular Interest shall be payable semi-annually in arrears on June 15 and December 15 of each year,
commencing December 15, 2010.

(b) Interest on the Securities shall be computed (i) for any full semi-annual period for which
a particular interest rate (inclusive of any Additional Interest payable with respect to the
Securities) is applicable, on the basis of a 360-day year of twelve 30-day months and (ii) for any
period for which a particular interest rate (inclusive of any Additional Interest payable with
respect to the
Securities) is applicable shorter than a full semi-annual period for which interest is
calculated, on the basis of a 30-day month and, for such periods of less than a month, the actual
number of days elapsed over a 30-day month.

 

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(c) Except as otherwise provided in this Section 4.01(c), a Holder of any Securities at the
Close of Business on a Record Date shall be entitled to receive Interest on such Securities on the
corresponding Interest Payment Date.

(i) A Holder of any Securities as of a Record Date that are converted after the Close
of Business on such Record Date and prior to the Open of Business on the corresponding
Interest Payment Date shall receive the Interest on the Principal Amount of such
Securities, notwithstanding the conversion of such Securities prior to such Interest
Payment Date. However, a Holder that surrenders any Securities for conversion between the
Close of Business on a Record Date and the Open 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 Securities on such Interest Payment Date at the time
such Holder surrenders such Securities for conversion, provided, however, that this
sentence shall not apply to a Holder that converts Securities:

(A) in respect of which the Company has specified a Fundamental Change
Repurchase Date that is after the relevant Record Date and on or prior to the
relevant Interest Payment Date;

(B) following the Record Date for the payment of Regular Interest on June
15, 2017; or

(C) to the extent of any overdue Interest, if any overdue Interest exists
at the time of conversion with respect to the Securities being converted.

Accordingly, a Holder that converts Securities under any of the circumstances described in
clauses (A), (B) or (C) above (in the case of clause (C), to the extent applicable) will not be
required to pay to the Company an amount equal to the Interest payable by the Company with respect
to such Securities on the relevant Interest Payment Date.

(ii) Notwithstanding any other provision of this Section 4.01(c), any Interest
payable on a Fundamental Change Repurchase Date that falls after the Close of Business on
a Record Date but at or prior to the Close of Business on the corresponding Interest
Payment Date shall be payable to the Holder of record on the corresponding Record Date as
provided in Section 6.01(a) and shall not be payable to the Holder of the Securities being
purchased. The payment of such Interest to the Holder on the
Record Date as provided in Section 6.01(a) shall be deemed to satisfy the Company’s
obligations in respect of such Interest.

 

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ARTICLE 5

Covenants

Section 5.01. Payments. The Company shall duly and punctually make all payments in respect
of the Securities in accordance with the terms of the Securities and this Indenture.

Any payments made or due pursuant to this Indenture shall be considered paid on the applicable
date due if by 10:00 a.m., New York City time, on such date the Paying Agent holds, in accordance
with this Indenture, cash sufficient to pay all such amounts then due. Payment of the principal of
and Interest on the Securities shall be in such coin or currency of the United States of America as
at the time of payment is legal tender for payment of public and private debts.

Section 5.02. Maintenance of Office or Agency. The Company shall maintain an office or
agency in the Borough of Manhattan, The City of New York, where Securities may be presented or
surrendered for payment or conversion, where Securities may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Company in respect of the
Securities and this Indenture may be served, which shall initially be the applicable Corporate
Trust Office of the Trustee. The Company shall give prompt written notice to the Trustee of the
location, and any change in the location, of such office or agency not designated or appointed by
the Trustee. If at any time the Company shall fail to maintain any such required office or agency
or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office, and the Company hereby
appoints the Trustee as its agent to receive all such presentations, surrenders, notices and
demands.

The Company may also from time to time designate one or more other offices or agencies (in or
outside the Borough of Manhattan, The City of New York) where the Securities may be presented or
surrendered for any or all such purposes and may from time to time rescind such designations;
provided, however that no such designation or rescission shall in any manner relieve the Company of
its obligation to maintain an office or agency in the Borough of Manhattan, The City of New York,
for such purposes. The Company shall give prompt written notice to the Trustee of any such
designation or rescission and of any change in the location of any such other office or agency.

So long as the Trustee is the Security Registrar, the Trustee agrees to mail, or cause to be
mailed, the notices set forth in Section 10.10(c) and the third paragraph of Section 10.11. If
co-registrars have been appointed in accordance
with this Section, the Trustee shall mail such notices only to the Company and the holders of
Securities it can identify from its records.

 

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The Company hereby initially designates the Trustee as Paying Agent, Security Registrar,
Custodian and Conversion Agent and the Corporate Trust Office.

Section 5.03. Appointments to Fill Vacancies in Trustee’s Office. The Company, whenever
necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided
in Section 10.10(a), a Trustee, so that there shall at all times be a Trustee hereunder.

Section 5.04. Provisions as to Paying Agent.

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

(i) that it will hold all sums held by it as such agent for the payment of the
principal of or Interest on the Securities (whether such sums have been paid to it by the
Company or by any other obligor on the Securities) in trust for the benefit of the holders
of the Securities;

(ii) that it will give the Trustee notice of any failure by the Company (or by any
other obligor on the Securities) to make any payment of the principal of or Interest on
the Securities when the same shall be due and payable; and

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

The Company shall, on or before each due date of the Principal Amount of or Interest on the
Securities, deposit with the Paying Agent a sum (in funds which are immediately available on the
due date for such payment) sufficient to pay such Principal Amount or Interest, and (unless such
Paying Agent is the Trustee) the Company will promptly notify the Trustee of any failure to take
such action; provided, however, that if such deposit is made on the due date, such deposit shall be
received by the Paying Agent by 10:00 a.m. New York City time, on such date.

(b) If the Company shall act as its own Paying Agent, it will, on or before each due date of
the Principal Amount of or Interest on the Securities, set aside, segregate and hold in trust for
the benefit of the Holders of the Securities a sum sufficient to pay such Principal Amount or
Interest, so becoming due and will promptly notify the Trustee of any failure to take such action
and of any failure by the Company (or any other obligor under the Securities) to make any payment
of
the Principal Amount of or Interest on the Securities when the same shall become due and
payable.

 

40

 

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

(d) Anything in this Section 5.04 to the contrary notwithstanding, the agreement to hold sums
in trust as provided in this Section 5.04 is subject to Section 12.03 and Section 12.04.

The Trustee shall not be responsible for the actions of any other Paying Agents (including the
Company if acting as its own Paying Agent) and shall have no control of any funds held by such
other Paying Agents.

Section 5.05. Existence. Subject to Article 9, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its existence and rights (charter
and statutory); provided, however, that the Company shall not be required to preserve any such
right if the Company shall determine that the preservation thereof is no longer desirable in the
conduct of the business of the Company and that the loss thereof is not disadvantageous in any
material respect to the Holders of the Securities.

Section 5.06. Rule 144A Information Requirement. Within the period prior to the expiration
of the holding period applicable to sales of Securities or any Common Stock issuable on conversion
thereof under Rule 144 under the Securities Act (or any successor provision), the Company covenants
and agrees that it shall, during any period in which it is not subject to Section 13 or 15(d) under
the Exchange Act, make available to any Holder or beneficial holder of Securities or any Common
Stock issued upon conversion thereof, in each case which continue to be Restricted Securities in
connection with any sale thereof and any prospective purchaser of Securities or such Common Stock
designated by such Holder or beneficial holder, the information required pursuant to Rule
144A(d)(4) under the Securities Act upon the request of any Holder or beneficial holder of the
Securities or such Common Stock and it will take such further action as any Holder or beneficial
holder of such Securities or such Common Stock may reasonably request, all to the extent required
from time to time to enable such Holder or beneficial holder to sell its Securities or Common Stock
without registration under the Securities Act within the limitation of the exemption provided by
Rule 144A, as such rule may be amended from time to time. Upon the request of any Holder or any
beneficial holder of the Securities or such
Common Stock, the Company will deliver to such Holder a written statement as to whether it has
complied with such requirements.

 

41

 

Section 5.07. Commission Filings and Reports. The Company covenants to file with the Trustee
copies of the annual reports and of the information, documents and other reports (or copies of such
portions of any of the foregoing as the Commission may from time to time by rules and regulations
prescribe), other than current reports on Form 8-K, which the Company may be required to file with
the Commission pursuant to Section 13 or Section 15(d) of the Exchange Act, within 15 days after
the same is required to be filed with the Commission (giving effect to any grace period provided by
Rule 12b-25 under the Exchange Act); provided that in each case the delivery of materials to the
Trustee by electronic means or filing of documents pursuant to the Commission’s “EDGAR” system (or
any successor electronic filing system) shall be deemed to constitute “filing” with the Trustee for
purposes of this Section 5.07 at the time such documents are so delivered or filed, provided,
however, that the Trustee shall have no responsibility whatsoever to determine whether such filing
has been made. Delivery of such reports, information and documents to the Trustee is for
informational purposes only and the Trustee’s receipt of such shall not constitute constructive
notice of any information contained therein or determinable from information contained therein,
including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers’ Certificates).

Section 5.08. Additional Interest. If at any time Additional Interest becomes payable by the
Company pursuant to Section 8.03, the Company shall promptly deliver to the Trustee a certificate
to that effect and stating (1) the amount of such Additional Interest that is payable and (2) the
date on which such Additional Interest is payable. Additional Interest payable in accordance with
Section 8.03 shall be payable in arrears on each Interest Payment Date following accrual in the
same manner as Regular Interest on the Securities. Unless and until a Responsible Officer of the
Trustee receives such a certificate, the Trustee may assume without inquiry that no Additional
Interest is payable. If the Company has paid Additional Interest directly to the Persons entitled
to such Additional Interest, the Company shall deliver to the Trustee a certificate setting forth
the particulars of such payment.

Section 5.09. Stay; Extension and Usury Laws. The Company covenants (to the extent that it
may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever
claim or take the benefit or advantage of, any stay, extension or usury law or other law which
would prohibit or forgive the Company from paying all or any portion of the principal of or
Interest, on the Securities as contemplated herein, wherever enacted, now or at any time hereafter
in force, or which may affect the covenants or the performance of this Indenture and the Company
(to the extent it may lawfully do so) hereby expressly waives all benefit or advantage of any such
law, and covenants that it will not, by resort to any such law, hinder, delay or impede the
execution of any power herein granted
to the Trustee, but will suffer and permit the execution of every such power as though no such
law had been enacted.

 

42

 

Section 5.10. Compliance Certificate. The Company shall deliver to the Trustee, within 120
days after the end of each fiscal year of the Company (beginning with the fiscal year that begins
after April 3, 2010), an Officers’ Certificate, stating whether or not to the knowledge of the
signers thereof any Event of Default or Default has occurred in such fiscal year and, if the
Company shall be in default, specifying all such Defaults and the nature and the status thereof of
which the signer may have knowledge.

The Company shall deliver to the Trustee within 60 days after the Company becomes aware of the
occurrence of any Event of Default or Default, written notice setting forth the details of such
Event of Default or Default, its status and the action which the Company proposes to take or is
taking with respect thereto.

Any notice required to be given under this Section 5.10 shall be delivered to a Responsible
Officer of the Trustee at its Corporate Trust Office.

Section 5.11. 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 Indenture.

ARTICLE 6

Fundamental Changes and Repurchases Thereupon

Section 6.01. Repurchase at Option of Holders upon a Fundamental Change.

(a) Generally. If a Fundamental Change occurs at any time, then each Holder shall have the
right, at such Holder’s option, to require the Company to repurchase for cash all of such Holder’s
Securities or any portion thereof that is equal to $1,000 or a multiple of $1,000 Principal Amount,
on a Business Day (the “Fundamental Change Repurchase Date”) specified by the Company that is not
less than 20 nor more than 35 calendar 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”); provided, however that if Securities are repurchased
pursuant to this Section 6.01 on any date between a Record Date and the Interest Payment Date to
which such Record Date relates, the full amount of Interest payable in respect of such Interest
Payment Date shall be payable to the Holders of record as of the corresponding Record Date, in
which
case, the Fundamental Change Repurchase Price shall be equal to 100% of the Principal Amount
of the Securities being purchased.

 

43

 

Repurchases of Securities under this Section 6.01, at the option of the Holder thereof, shall
be made upon:

(i) delivery to the Trustee (or other Paying Agent appointed by the Company) by a
Holder, prior to the Close of Business on the Business Day immediately preceding the
Fundamental Change Repurchase Date, of a duly completed notice (the “Fundamental Change
Repurchase Notice”) in the form set forth on the reverse of the Securities prior to the
Close of Business on the Fundamental Change Repurchase Date; and

(ii) delivery or book-entry transfer of the Securities to be repurchased to the
Trustee (or other Paying Agent appointed by the Company) prior to the Close of Business on
the Business Day immediately preceding the Fundamental Change Repurchase Date therefor;
provided that such Fundamental Change Repurchase Price shall be so paid pursuant to this
Section 6.01 only if the Securities 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 Physical Securities are to be delivered, the certificate numbers of
Securities to be delivered for repurchase;

(B) the portion of the Principal Amount of Securities to be repurchased,
which must be $1,000 or a multiple thereof; and

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

provided, however, that if the Securities are not Physical Securities, the notice must comply with
appropriate procedures of the Depositary.

Any purchase by the Company contemplated pursuant to the provisions of this Section 6.01
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 Securities.

Notwithstanding anything herein to the contrary, any Holder delivering to the Trustee (or
other Paying Agent appointed by the Company) the Fundamental Change Repurchase Notice contemplated
by this Section 6.01 shall have the right
to withdraw such Fundamental Change Repurchase Notice at any time prior to the Close of
Business on the Business Day prior to the Fundamental Change Repurchase Date by delivery of a
written notice of withdrawal to the Trustee (or other Paying Agent appointed by the Company) in
accordance with Section 6.03 below.

 

44

 

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. If any Fundamental Change Repurchase Notice is given and then withdrawn prior to the
Close of Business of the Business Day immediately preceding the Fundamental Change Repurchase Date,
the Company will not be obligated to purchase the Securities to which such Fundamental Change
Repurchase Notice relates.

(b) Fundamental Change Company Notice. On or before the 20th Business Day after the
occurrence of a Fundamental Change, the Company shall provide to all Holders of record of the
Securities 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 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) the last date on which a Holder may exercise the repurchase right;

(iv) the Fundamental Change Repurchase Price;

(v) the Fundamental Change Repurchase Date;

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

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

 

45

 

(viii) if applicable, that the Securities 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 Section 6.03; and

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

No failure of the Company to give the foregoing notices and no defect therein shall limit the
Holders’ repurchase rights or affect the validity of the proceedings for the repurchase of the
Securities pursuant to this Section 6.01.

(c) No Payment During Acceleration. There shall be no repurchase of any Securities pursuant
to this Section 6.01 if (prior to, on or after, as the case may be, the giving, by the Holders of
such Securities, of the required Fundamental Change Repurchase Notice) the Principal Amount of the
Securities has been accelerated in accordance with this Indenture and such acceleration has not
been rescinded on or prior to the Fundamental Change Repurchase Date (except in the case of an
acceleration resulting from a Default by the Company in payment of the Fundamental Change
Repurchase Price with respect to such Securities). The Paying Agent will promptly return to the
respective Holders thereof any Securities (i) with respect to which a Fundamental Change Repurchase
Notice has been withdrawn in compliance with this Indenture, or (ii) held by it during the
continuance of an acceleration (other than an acceleration resulting from a Default that is cured
by the payment of the Fundamental Change Repurchase Price with respect to such Securities) and
shall deem to be cancelled any instructions for book-entry transfer of the Securities in compliance
with the procedures of the Depositary in which case, upon such return, the Fundamental Change
Repurchase Notice with respect thereto shall be deemed to have been withdrawn.

(d) Payment of Fundamental Change Repurchase Price. The Securities to be repurchased pursuant
to this Section 6.01 shall be paid for in cash.

Section 6.02. Effect of Fundamental Change Repurchase Notice. Upon receipt by the Paying
Agent of the Fundamental Change Repurchase Notice specified in Section 6.01(a), the Holder of the
Security in respect of which such Fundamental Change Repurchase Notice was given shall (unless such
Fundamental Change Repurchase Notice is withdrawn as specified in Section 6.03) thereafter be
entitled to receive solely the Fundamental Change Repurchase Price with respect to such Security.
Such Fundamental Change Repurchase Price shall be paid to such Holder, subject to receipt of funds
by the Paying Agent, promptly following the later of (x) the Fundamental Change Repurchase Date
with respect to such Security (provided the conditions in Section 6.01(a) have been satisfied) and
(y) the time of delivery of such Security to the Paying Agent by the Holder thereof in the manner
required by Section 6.01(a).

 

46

 

Section 6.03. Withdrawal of Fundamental Change Repurchase Notice. A Fundamental Change
Repurchase Notice may be withdrawn in whole or in part by
means of a written notice of withdrawal delivered to the Paying Agent in accordance with the
Fundamental Change Company Notice at any time prior to the Close of Business on the Business Day
immediately preceding the Fundamental Change Repurchase Date, specifying:

(i) the Principal Amount of the Securities with respect to which such notice of
withdrawal is being submitted;

(ii) if Physical Securities have been issued, the certificate numbers of the
withdrawn Securities; and

(iii) the Principal Amount, if any, of such Securities that remains subject to the
original Fundamental Change Repurchase Notice, which portion must be in Principal Amounts
of $1,000 or a multiple of $1,000;

provided, however, that if the Securities are not Physical Securities, the notice must comply with
appropriate procedures of the Depositary.

Section 6.04. Deposit of Fundamental Change Repurchase Price. Prior to 10:00 a.m. (New York
City time) on the Fundamental Change Repurchase Date, the Company shall deposit with the Trustee or
with the Paying Agent (or, if the Company or a Subsidiary or an Affiliate of either of them is
acting as the Paying Agent, shall segregate and hold in trust as provided herein) an amount of
money (in immediately available funds if deposited on such Business Day) sufficient to pay the
Fundamental Change Repurchase Price, of all the Securities or portions thereof that are to be
repurchased as of the Fundamental Change Repurchase Date. The Company shall promptly notify the
Trustee in writing of the amount of any deposits of cash made pursuant to this Section 6.04. If
the Paying Agent holds cash sufficient to pay the Fundamental Change Repurchase Price of any
Security for which a Fundamental Change Repurchase Notice has been tendered and not withdrawn in
accordance with this Indenture as of the Close of Business on the Business Day prior to the
Fundamental Change Repurchase Date, then immediately following the Fundamental Change Repurchase
Date, (a) such Security will cease to be Outstanding and Interest will cease to accrue thereon
(whether or not book-entry transfer of such Security is made or whether or not such Security is
delivered to the Paying Agent) and (b) all other rights of the Holder in respect thereof will
terminate (other than the right to receive the Fundamental Change Repurchase Price and previously
accrued and unpaid Interest upon delivery or transfer of such Security).

 

47

 

Section 6.05. Securities Repurchased in Whole or in Part. Any Security that is to be
repurchased, whether in whole or in part, shall be surrendered at the office of the Paying Agent
(with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of
transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof
or such Holder’s attorney duly authorized in writing) and the Company shall execute and the
Trustee shall authenticate and deliver to the Holder of such Security, without service charge,
a new Security or Securities, of any authorized denomination as requested by such Holder in
aggregate Principal Amount equal to, and in exchange for, the portion of the Principal Amount of
the Security so surrendered which is not repurchased, provided, that such Principal Amount must be
$2,000 or greater.

Section 6.06. Covenant to Comply With Securities Laws Upon Repurchase of Securities. In
connection with any offer to repurchase Securities under Section 6.01 (provided that such offer or
repurchase constitutes an “issuer tender offer” for purposes of Rule 13e-4 (which term, as used
herein, includes any successor provision thereto) under the Exchange Act at the time of such offer
or repurchase), the Company shall (i) comply with the provisions of the tender offer rules under
the Exchange Act that may then be applicable, (ii) file the related Schedule TO (or any successor
schedule, form or report) to the extent required or any other required schedule under the Exchange
Act, and (iii) otherwise comply with all Federal and state securities laws so as to permit the
rights and obligations under Section 6.01 to be exercised in the time and in the manner specified
in Section 6.01.

Section 6.07. Repayment to The Company. The Trustee and the Paying Agent shall return to the
Company any cash that remains unclaimed, together with interest or dividends, if any, thereon, held
by them for the payment of the Fundamental Change Repurchase Price; provided that to the extent
that the aggregate amount of cash deposited by the Company pursuant to Section 6.04 exceeds the
aggregate Fundamental Change Repurchase Price of the Securities or portions thereof which the
Company is obligated to repurchase as of the Fundamental Change Repurchase Date, then as soon as
practicable following the Fundamental Change Repurchase Date, the Trustee or the Paying Agent, as
the case may be, shall return any such excess to the Company.

Section 6.08. Purchase by Third Party. Notwithstanding the foregoing provisions of this
Article 6, the Company shall not be required to issue a Fundamental Change Company Notice upon a
Fundamental Change (i) if another Person issues a Fundamental Change Company Notice in the manner,
at the times and otherwise in compliance with the requirements set forth in Section 6.01(b)
applicable to a Fundamental Change Company Notice made by the Company and otherwise complies with
the provisions of this Article 6 as if it were the Company, and (ii) purchases and pays for all
Securities validly tendered and not withdrawn pursuant to such Fundamental Change Company Notice.

 

48

 

ARTICLE 7

Conversion

Section 7.01. Right to Convert. (a) Subject to and upon compliance with the provisions of
this Indenture, each Holder shall have the right, at such Holder’s
option, at any time prior to the Close of Business on the second Scheduled Trading Day
immediately preceding the Stated Maturity to convert the Principal Amount of any such Securities,
or any portion of such Principal Amount which is $1,000 or a multiple thereof at a rate per $1,000
Principal Amount of such Security (the “Conversion Rate”) then in effect, (x) on or after March 15,
2017, without regard to the conditions described in clauses (i) through (iv) below and (y) prior to
the Close of Business on the Business Day immediately preceding March 15, 2017, only upon the
satisfaction of any of the following conditions:

(i) A Holder may surrender all or a portion of its Securities for conversion during
any fiscal quarter (and only during such fiscal quarter) commencing after October 2, 2010
if the Last Reported Sale Price for the Common Stock for at least 20 Trading Days (whether
or not consecutive) during the period of 30 consecutive Trading Days ending on the last
Trading Day of the immediately preceding fiscal quarter is greater than or equal to 130%
of the applicable Conversion Price in effect on each applicable Trading Day.

(ii) A Holder may surrender its Securities for conversion during the five Business
Day period after any 10 consecutive Trading Day period (the “Measurement Period”) in which
the Trading Price per $1,000 Principal Amount of Securities, as determined by the Bid
Solicitation Agent following a request by a Holder in accordance with the procedures set
forth in this Section 7.01(a)(ii), for each day of such Measurement Period was less than
98% of the product of the Last Reported Sale Price of the Common Stock and the applicable
Conversion Rate (“Trading Price Condition”). If the Company did not so instruct the Bid
Solicitation Agent to obtain bids when required, the Trading Price per $1,000 Principal
Amount of Securities would deemed to be less than 98% of the product of the Last Reported
Sale Price of the Common Stock and the applicable Conversion Rate on each day the Company
fails to do so. In connection with any conversion in accordance with this Section
7.01(a)(ii), the Bid Solicitation Agent shall have no obligation to determine the Trading
Price of the Securities unless requested by the Company; and the Company shall have no
obligation to make such request to the Bid Solicitation Agent unless a Holder of a
Security provides the Company with reasonable evidence that the Trading Price per $1,000
Principal Amount of Securities would be less than 98% of the product of the Last Reported
Sale Price of the Common Stock and the applicable Conversion Rate. After receiving such
evidence, the Company shall instruct the Bid Solicitation Agent to determine the Trading
Price of the Securities beginning on the next Trading Day and on each successive Trading
Day until the Trading Price per $1,000 Principal Amount of Securities is greater than or
equal to 98% of the product of the Last Reported Sale Price of the Common Stock and the
applicable Conversion Rate. If the Trading Price Condition has been met, the Company will
notify the Holders and the Trustee. If, at any time after the Trading Price
Condition has been met, the Trading Price per $1,000 Principal Amount of Securities
is greater than 98% of the product of the Last Reported Sale Price of the Common Stock and
the Conversion Rate for such date, the Company will so notify the Holders and the Trustee.

 

49

 

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

(A) issue to all or substantially all holders of Common Stock rights,
options or warrants entitling them to subscribe for or purchase, for a period
expiring within 60 days after the date of the distribution, shares of Common
Stock at less than the average of the Last Reported Sale Prices of a share of
Common Stock for the 10 consecutive Trading Day period ending on the Trading Day
immediately preceding the date of announcement of such issuance; or

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

then, in either case, the Company shall notify the Holders, in the manner provided in Section
1.05, at least 35 Scheduled Trading Days prior to the Ex Date for such distribution. Once the
Company has given such notice, Holders may surrender Securities for conversion at any time until
the earlier of the Close of Business on the Business Day immediately prior to such Ex Date and the
Company’s announcement that such distribution will not take place, even if the Securities are not
otherwise convertible at such time.

(iv) If the Company is party to a transaction or event that constitutes a Fundamental
Change or a Make-Whole Fundamental Change, regardless of whether a Holder has the right to
require the Company to repurchase its Securities pursuant to Section 6.01, or if the
Company is a party to a consolidation, merger, binding share exchange, or transfer or
lease of all or substantially all of the assets of the Company, pursuant to which the
Common Stock would be converted into cash, securities or other assets, the Securities may
be surrendered for conversion at any time from or after the date which is 35 Scheduled
Trading Days prior to the anticipated effective date for such transaction (or, if later,
the Business Day after the Company gives notice of such transaction) until the earlier of
(A) the date which is 35 Scheduled Trading Days after the actual effective date of such
transaction (or, if such transaction also constitutes a Fundamental Change, until the
related

 

50

 

Fundamental Change Repurchase Date) or (B) the date the Company announces that the
transaction will not
take place. The Company shall notify Holders and the Trustee (i) as promptly as
practicable following the date the Company publicly announces such transaction but in no
event less than 35 Scheduled Trading Days prior to the anticipated effective date of such
transaction or (ii) if the Company does not have knowledge of such transaction, or the
anticipated effective date thereof, at least 35 Scheduled Trading Days prior to the
anticipated effective date of such transaction, within one Business Day of the date upon
which the Company receives notice, or otherwise becomes aware, of such transaction or the
anticipated effective date but in no event later than the actual effective date of the
transaction.

Section 7.02. Conversion Procedures. (a) Upon conversion of any Security, subject to this
Section 7.02 and Section 7.01 and Section 7.07, the Company will deliver to Holders in respect of
each $1,000 Principal Amount of Securities tendered for conversion a settlement amount equal to the
sum of the Daily Settlement Amounts for each of the 30 consecutive Trading Days during the
Observation Period (the “Settlement Amount”).

The “Daily Settlement Amount” for each of the 30 consecutive Trading Days during the
Observation Period shall consist of:

(i) cash equal to the lesser of one-thirtieth of $1,000 and the Daily Conversion
Value; and

(ii) if the Daily Conversion Value exceeds one-thirtieth of $1,000, a number of
 shares of Common Stock equal to (A) the difference between the Daily Conversion Value and
one-thirtieth of $1,000, divided by (B) the Daily VWAP for such Trading Day.

The “Daily Conversion Value” means, for each of the 30 consecutive Trading Days during the
Observation Period, one-thirtieth of the product of (i) the applicable Conversion Rate for such
Trading Day and (ii) the Daily VWAP of the Common Stock on such Trading Day.

(b) If any adjustment to the Conversion Rate or conversion of Securities pursuant to this
Section 7.02 would require the Company to issue shares of Common Stock in excess of the amount
permitted by applicable listing standards of The NASDAQ Global Select Market to be issued without
approval by the Company’s stockholders, the Company shall, at its option, either (i) obtain the
approval of its stockholders with respect to such issuance or (ii) in lieu of delivering shares of
Common Stock in excess of such limitations, pay cash on a pro rata basis to the Holders of
Securities being converted in an amount per share of Common Stock equal to the Daily VWAP of the
Common Stock on each Trading Day of the relevant Observation Period in respect of which such shares
would otherwise be required to be delivered to the converting Holders.

 

51

 

(c) For purposes of this Section 7.02, and notwithstanding the definition contained in
Section 1.01, the term “Trading Day” shall mean a day on which (A) there is no Market Disruption
Event and (B) trading in the Common Stock generally occurs on The NASDAQ Global Select Market or,
if the Common Stock is not then listed on The NASDAQ Global Select Market, on the other principal
U.S. national or regional securities exchange on which the Common Stock is then listed or, if the
Common Stock is not then listed on a U.S. national or regional securities exchange, on the
principal other market on which the Common Stock is then listed or admitted for trading. If the
Common Stock (or other security for which a Daily VWAP must be determined for purposes of this
Section 7.02) is not so listed or admitted for trading, then, for purposes of this Section 7.02,
“Trading Day” shall mean a Business Day.

(d) For purposes of this Section 7.02, the term “Market Disruption Event” means (i) a failure
by the primary U.S. national or regional securities exchange or market on which the Common Stock is
listed or admitted to trading to open for trading during its regular trading session or (ii) the
occurrence or existence prior to 1:00 p.m., New York City time, on any Scheduled Trading Day for
the Common Stock for more than one half-hour period in the aggregate during regular trading hours
of any suspension or limitation imposed on trading (by reason of movements in price exceeding
limits permitted by the relevant stock exchange or otherwise) in the Common Stock or in any
options, contracts or future contracts relating to the Common Stock.

(e) Before any Holder of a Security shall be entitled to convert the same as set forth above,
such Holder shall (1) in the case of a Global Security, 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 7.02(l) and, if
required pursuant to Section 7.02(a)(i), pay all stamp, transfer or similar taxes or duties, if
any, in connection with such conversion and (2) in the case of a Security 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 Security (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 Securities to be converted and the name or names (with addresses) in which such
Holder wishes the certificate or certificates for any shares of Common Stock, if any, to be
delivered upon settlement of the Company’s conversion obligation to be registered, (B) surrender
such Securities, 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
pursuant to Section 7.02(a)(i), pay all stamp, transfer or similar taxes or duties, if any, in
connection with such conversion, and (D) 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 7.02(l).
No Notice of Conversion with respect to any Securities 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, as the case may be, in accordance with Section 6.03.

 

52

 

If more than one Security shall be surrendered for conversion at one time by the same Holder,
the Company’s conversion obligation with respect to such Securities, if any, that shall be payable
upon conversion shall be computed on the basis of the aggregate Principal Amount of the Securities
(or specified portions thereof to the extent permitted thereby) so surrendered.

(f) A Security 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 clause (e); provided, however, that the Person in whose name any shares of the Common
Stock shall be issuable upon such conversion will become the Holder of record of such shares as of
the Close of Business on the last Trading Day of the relevant Observation Period.

(g) Except as set forth in Section 7.06, payment of the Settlement Amount pursuant to Section
7.02 in satisfaction of the Company’s conversion obligation shall be made by the Company in no
event later than the third Business Day immediately following the last Trading Day of the
Observation Period. The Company shall deliver cash in lieu of any fractional share of Common Stock
issuable in connection with payment of the Settlement Amount (based on the Daily VWAP of the last
Trading Day of the applicable Observation Period.

(h) In case any Security 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 Security so surrendered, without charge to such Holder, a new Security or Securities in
authorized denominations in an aggregate Principal Amount equal to the unconverted portion of the
surrendered Securities.

(i) If a Holder submits a Security for conversion, the Company shall pay any documentary,
stamp or similar issue or transfer tax due on the issue of any shares of Common Stock upon the
conversion, unless the tax is due because the Holder requests any shares to be issued in a name of
other than the Holder’s name or, solely because as a result of actions by the Holder, the tax is
imposed by any taxing authority outside the United States, in which case the Holder will pay that
tax. The Conversion Agent may refuse to deliver the certificates representing the shares of Common
Stock being issued in a name other than the Holder’s name until the Trustee receives a sum
sufficient to pay any tax which will be due because the shares are to be issued in a name other
than the Holder’s name or because of such tax imposed by such taxing authority outside the United
States. Nothing herein shall preclude any tax withholding required by law or regulations.

 

53

 

(j) Except as provided in Section 7.03, no adjustment shall be made for dividends on any
shares issued upon the conversion of any Security as provided in this Article 7.

(k) Upon the conversion of an interest in a Global Security, the Trustee shall make a notation
on such Global Security as to the reduction in the Principal Amount represented thereby. The
Company shall notify the Trustee in writing of any conversion of any Security effected through any
Conversion Agent other than the Trustee.

(l) Upon conversion, a Holder will not receive any separate cash payment for accrued and
unpaid Interest except as set forth below. The Company’s settlement of the conversion obligation
as described above shall be deemed to satisfy its obligation to pay the Principal Amount of the
Security 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, and to have been paid first out of the
cash paid upon such conversion. Notwithstanding the preceding sentence, payments in respect of
accrued and unpaid Interest on Securities converted after the Close of Business on a Record Date
and prior to the Open of Business on the related Interest Payment Date shall be governed by the
provisions of Section 4.01 hereof. Except as described above, no payment or adjustment will be
made for accrued Interest on converted Securities.

Section 7.03. Adjustment of Conversion Rate. The initial Conversion Rate (the “Initial
Conversion Rate”) is 33.0164 shares of Common Stock per $1,000 Principal Amount of Securities
(equivalent to a Conversion Price of approximately $30.29). The Conversion Rate shall be adjusted
from time to time by the Company as follows, except that the Conversion Rate shall not be adjusted
if Holders of Securities may participate (other than in the case of a share split or share
combination), at the same time and upon the same terms as holders of the Common Stock and solely as
a result of holding the Securities, in any of the transactions described in this Section 7.03
without having to convert their Securities as if they held a number of shares of Common Stock equal
to the applicable Conversion Rate, multiplied by the Principal Amount of Securities held by such
Holders divided by $1,000:

(a) If the Company shall exclusively issue shares of its Common Stock as a dividend or
distribution on all or substantially all shares of the Common Stock, or if the Company effects a
share split or share combination in respect of the Common Stock, then the Conversion Rate shall be
adjusted based on the following formula:

 

54

 

where

	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to the Open of Business
on the Ex Date of such dividend or distribution, or immediately prior to the Open of
Business on the Effective Date of such share split or combination, as applicable;
	 
	 	 	 	 	 	 
	 

	 	CR’
	 	=
	 	the Conversion Rate in effect immediately after the Open of Business on
such Ex Date or Effective Date;
	 
	 	 	 	 	 	 
	 

	 	OS0
	 	=
	 	the number of shares of Common Stock outstanding immediately prior to the
Open of Business on such Ex Date or Effective Date; and
	 
	 	 	 	 	 	 
	 

	 	OS’
	 	=
	 	the number of shares of Common Stock outstanding immediately after giving
effect to such dividend, distribution, share split or share combination.

Any adjustment made pursuant to this Section 7.03(a) shall become effective immediately after
the Open of Business on the Ex Date for such dividend or distribution, or immediately after the
Open of Business on the Effective Date for such share split or share combination. If any dividend
or distribution of the type described in this Section 7.03(a) is declared but not so paid or made,
and an adjustment to the Conversion Rate has become effective pursuant to the preceding sentence,
the Conversion Rate shall be immediately readjusted, effective as of the date the Company’s Board
of Directors determines not to pay such dividend or distribution to the Conversion Rate that would
then be in effect if such dividend or distribution had not been declared.

(b) In case the Company shall issue to all or substantially all holders of its outstanding
shares of Common Stock any rights, options or warrants entitling them for a period of not more than
60 calendar days after the announcement date of such issuance to subscribe for or purchase shares
of Common Stock at a price per share less than the average of the Last Reported Sale Prices of
Common Stock for the 10 consecutive Trading Day period ending on the Trading Day immediately
preceding the date of announcement of such issuance, the Conversion Rate shall be adjusted based on
the following formula:

where

	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to the Open of Business
on the Ex Date for such issuance;
	 
	 	 	 	 	 	 
	 

	 	CR’
	 	=
	 	the Conversion Rate in effect immediately after the Open of Business on
such Ex Date;

 

55

 

	 	 	 	 	 	 	 
	 

	 	OS0
	 	=
	 	the number of shares of Common Stock outstanding immediately prior to the
Open of Business on such Ex Date;
	 
	 	 	 	 	 	 
	 

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

	 	Y
	 	=
	 	the number of shares of Common Stock equal to the aggregate price payable
to exercise such rights, options or warrants divided by the average of the Last
Reported Sale Prices of Common Stock for the 10 consecutive Trading Day period ending
on the Trading Day immediately preceding the date of announcement of the issuance of
such rights, options or warrants.

Any increase pursuant to this Section 7.03(b) shall be made successively whenever any such
rights, options or warrants are issued and shall become effective immediately after the Open of
Business on the Ex Date for such issuance. To the extent such rights, options or warrants are not
exercised or converted prior to their expiration or termination, the Conversion Rate shall be
decreased to the Conversion Rate that would then be in effect had the increase with respect to the
issuance of such rights, options or warrants been made on the basis of delivery of only the number
of shares of Common Stock actually delivered. If such rights, options or warrants are not so
issued, the Conversion Rate shall be decreased to the Conversion Rate that would then be in effect
if such Ex Date for such issuance had not occurred.

In determining whether any rights, options or warrants entitle the Holders to subscribe for or
purchase shares of the Common Stock at less than the average of the Last Reported Sale Prices for
the 10 consecutive Trading Day period ending on the Trading Day immediately preceding the date of
announcement for such issuance, and in determining the aggregate offering price of such shares of
the Common Stock, there shall be taken into account any consideration received by the Company for
such rights, options or warrants and any amount payable on exercise or conversion thereof, with the
value of such consideration, if other than cash, to be determined by the Company’s Board of
Directors.

 

56

 

(c) If the Company distributes shares of its Capital Stock, evidences of its indebtedness,
other assets or property of the Company or rights, options or warrants to acquire the Company’s
Capital Stock or other securities, to all or substantially all holders of its Common Stock,
excluding:

(i) Dividends or distributions, and rights, options or warrants as to which an
adjustment to the Conversion Rate is effected pursuant to Section 7.03(a) or Section
7.03(b) above or Section 7.03(e) below;

(ii) dividends or distributions paid exclusively in cash, including as described in
Section 7.03(d);

(iii) Spin-Offs to which the provisions set forth below in this Section 7.03(c)
apply; and

(iv) dividends or distributions in connection with a reclassification, merger, sale
or conveyance resulting in a change in the consideration the Holders would receive upon
conversion of the Securities, as set forth in Section 7.07.

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

where

	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to the Open of Business
on the Ex Date for such distribution;
	 
	 	 	 	 	 	 
	 

	 	CR’
	 	=
	 	the Conversion Rate in effect immediately after the Open of Business on
such Ex Date for such distribution;
	 
	 	 	 	 	 	 
	 

	 	SP0
	 	=
	 	the average of the Last Reported Sale Prices of the Common Stock over the
10 consecutive Trading Day period ending on the Trading Day immediately preceding the
Ex Date for such distribution; and
	 
	 	 	 	 	 	 
	 

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

provided that if “FMV” as set forth above is equal to or greater than “SP0” as set forth
above, in lieu of the foregoing increase, each Holder shall receive, in respect of each $1,000
Principal Amount of the Securities, at the same time and upon the same terms as holders of the
Common Stock, the amount and kind of the Company’s Capital Stock, evidences of indebtedness, other
assets or property of the Company or rights, options or warrants to acquire the Company’s Capital
Stock or other securities that such Holder would have received as if such Holder owned a number of
shares of the Common Stock equal to the Conversion Rate in effect immediately prior to the Open of
Business on the Ex Date for the distribution.

 

57

 

Such increase shall become effective immediately after the Open of Business on the Ex Date for
such distribution. If such distribution is not so paid or made, the Conversion Rate shall be
decreased to be the Conversion Rate that would then be in effect if such dividend or distribution
had not been declared. If the Board of Directors of the Company determines the fair market value of
any
distribution for purposes of this Section 7.03(c) by reference to the actual or when issued
trading market for any securities, it shall in doing so consider the prices in such market over the
same period used above in computing the average of the Last Reported Sale Prices of the Common
Stock.

With respect to an adjustment pursuant to this Section 7.03(c) where there has been a payment
of a dividend or other distribution on the Common Stock of shares of Capital Stock of any class or
series, or similar equity interest, of or relating to a Subsidiary or other business unit (a
“Spin-Off”), the Conversion Rate will be increased based on the following formula:

where

	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to the end of the
Valuation Period;
	 
	 	 	 	 	 	 
	 

	 	CR’
	 	=
	 	the Conversion Rate in effect immediately after the end of the Valuation
Period;
	 
	 	 	 	 	 	 
	 

	 	FMV0
	 	=
	 	the average of the Last Reported Sale Prices of the Capital Stock or
similar equity interest distributed to holders of Common Stock applicable to one
share of Common Stock over the first 10 consecutive Trading Day period after and, if
the Ex Date is effective as of the open of trading on the Ex Date of the Spin Off,
including, the Ex Date of the Spin-Off (the “Valuation Period”); and
	 
	 	 	 	 	 	 
	 

	 	MP0
	 	=
	 	the average of the Last Reported Sale Prices of Common Stock over the
Valuation Period.

Such adjustment shall occur on the last day of the Valuation Period; provided that in respect
of any conversion (or calculation of a Daily Conversion Value in respect of a conversion occurring
before the Ex Date of any Spin-Off) during the Valuation Period, references above with respect to
10 Trading Days shall be deemed replaced with such lesser number of Trading Days as have elapsed
between the Ex Date of such Spin-Off and the Conversion Date or the date of such calculation of a
Daily Conversion Value in determining the applicable Conversion Rate.

 

58

 

For purposes of this Section 7.03(c), Section 7.03(a) and Section 7.03(b), any dividend or
distribution to which this Section 7.03(c) is applicable that also includes shares of Common
Stock, or rights, options, or warrants to subscribe for, purchase or convert into shares of Common
Stock to which Section 7.03(a) and/or 7.03(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 shares of Common Stock or rights, options or warrants to which
Section 7.03(a) or 7.03(b) applies (and any Conversion Rate adjustment required by this
Section 7.03(c) with respect to such dividend or distribution shall then be made) immediately
followed by (2) a dividend or distribution of such shares of Common Stock or such rights, options
or warrants to which Section 7.03(a) or 7.03(b) applies (and any further Conversion Rate
adjustment required by Section 7.03(a) and 7.03(b) with respect to such dividend or distribution
shall then be made), except (A) the Ex Date of such dividend or distribution shall be substituted
for “the Ex Date,” “the Ex Date or Effective Date,” and “the Ex Date for such issuance” within the
meaning of Section 7.03(a) and Section 7.03(b) and (B) any shares of Common Stock included in
such dividend or distribution shall not be deemed “outstanding immediately prior to the Ex Date or
Effective Date” within the meaning of Section 7.03(a).

(d) If a cash dividend or distribution is made to all or substantially all holders of the
Common Stock (other than (i) distributions described in Section 7.03(e) pursuant to which an
adjustment to the Conversion Rate is made pursuant to Section 7.03(e), (ii) an extraordinary cash
dividend or distribution that the Company’s Board of Directors designates as payable with respect
to the Securities or (iii) regular quarterly cash dividends that do not exceed $0.16 per share
(the “Initial Dividend Threshold”)), the Conversion Rate shall be adjusted based on the following
formula:

where

	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to the Open of Business
on the Ex Date for such dividend or distribution;
	 
	 	 	 	 	 	 
	 

	 	CR’
	 	=
	 	the Conversion Rate in effect immediately after the Open of Business on
the Ex Date for such dividend or distribution;

 

59

 

	 	 	 	 	 	 	 
	 

	 	SP0
	 	=
	 	the Last Reported Sale Price of the Common Stock on the Trading Day
immediately preceding the Ex Date for such dividend or distribution; and
	 
	 	 	 	 	 	 
	 

	 	C
	 	=
	 	the amount in cash per share that the Company distributes to holders of
Common Stock in excess of the Initial Dividend Threshold provided that if the
dividend or distribution is not a regular quarterly cash dividend, the Initial
Dividend Threshold will be deemed to be zero. The Initial Dividend Threshold is
subject to adjustment in a manner inversely proportional to adjustments to the
Conversion Rate, provided that no adjustment will be made
to the Initial Dividend Threshold for any adjustment made to the
Conversion Rate under this Section 7.03(d).

provided that if “C” as set forth above is equal to or greater than “SP0” as set
forth above, in lieu of the foregoing increase, each Holder shall receive, for each $1,000
Principal Amount of Securities, at the same time and upon the same terms as holders of shares of
Common Stock, the amount of cash that such Holder would have received if such Holder owned a number
of shares of Common Stock equal to the Conversion Rate in effect immediately prior to the Open of
Business on the Ex Date for such cash dividend or distribution. Such increase shall become
effective immediately after the Open of Business on the Ex Date for such dividend or distribution.
If such dividend or distribution is not so paid or made, the Conversion Rate shall be decreased 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 7.03(d), in the event of any
reclassification of the Common Stock, as a result of which the Securities become convertible into
more than one class of Common Stock, if an adjustment to the Conversion Rate is required pursuant
to this Section 7.03(d), references in this Section 7.03(d) to one share of Common Stock or Last
Reported Sale Price of one share of Common Stock shall be deemed to refer to a unit or to the price
of a unit consisting of the number of shares of each class of Common Stock into which the
Securities are then convertible equal to the numbers of shares of such class issued in respect of
one share of Common Stock in such reclassification. The above provisions of this paragraph shall
similarly apply to successive reclassifications.

 

60

 

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

where

	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to the Close of Business
on the 10th Trading Day immediately following, and including, the Trading
Day next succeeding the date such tender or exchange offer expires;
	 
	 	 	 	 	 	 
	 

	 	CR’
	 	=
	 	the Conversion Rate in effect immediately after the Close of Business on
the 10th Trading Day immediately following, and including, the Trading Day
next succeeding the date such tender or exchange offer expires;
	 
	 	 	 	 	 	 
	 

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

	 	OS0
	 	=
	 	the number of shares of Common Stock outstanding immediately prior to the
date such tender or exchange offer expires (prior to giving effect to the purchase of
all shares accepted for purchase or exchange in such tender or exchange offer);
	 
	 	 	 	 	 	 
	 

	 	OS’
	 	=
	 	the number of shares of Common Stock outstanding immediately after the
date such tender or exchange offer expires (after giving effect to the purchase of
all shares accepted for purchase or exchange in such tender or exchange offer); and
	 
	 	 	 	 	 	 
	 

	 	SP’
	 	=
	 	the average of the Last Reported Sale Prices of Common Stock over the 10
consecutive Trading Day period commencing on the Trading Day next succeeding the date
such tender or exchange offer expires,

The adjustment to the Conversion Rate under this Section 7.03(e) shall occur at the Close of
Business on the 10th Trading Day immediately following, and including, the Trading Day next
succeeding the date such tender or exchange offer expires; provided that in respect of any
conversion (or calculation of a Daily Conversion Value in respect of a conversion occurring before
the expiration of such tender or exchange offer) within the 10 Trading Days immediately following,
and including, the expiration date of any tender or exchange offer, references with respect to 10
Trading Days shall be deemed replaced with such lesser number of Trading Days as have elapsed
between the expiration date of such tender or exchange offer and the Conversion Date or the date of
such calculation of Daily Conversion Value in determining the applicable Conversion Rate.

 

61

 

If the Company is obligated to repurchase shares pursuant to any such tender or exchange
offer, but the Company is permanently prevented by
applicable law from effecting any such purchases or all 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.

(f) For purposes of this Section 7.03, the term “Effective Date” shall mean the first date on
which the shares of Common Stock trade on the applicable exchange or in the applicable market,
regular way, reflecting the transaction.

(g) In addition to those required by clause (a), (b), (c), (d), or (e) of this Section 7.03
(and subject to Section 7.02(b), the Company from time to time may increase the Conversion Rate by
any amount for a period at least 20 Business Days if the Company’s Board of Directors determines
that such increase would be in the Company’s best interest. In addition, the Company may also (but
is not required to) increase the Conversion Rate to avoid or diminish any income tax to holders of
Common Stock or rights to purchase Common Stock in connection with any dividend or distribution of
shares (or rights to acquire shares) or similar event. Whenever the Conversion Rate is increased
pursuant to the preceding sentence, the Company shall mail to the Holder of each Security at such
Holder’s last address appearing on the Security Register provided for in Section 3.05 a notice of
the increase at least fifteen 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 7 shall be made by the
Company or its agents (exclusive of the Conversion Agent) 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 Stock or convertible or exchangeable securities or
rights to purchase Common Stock or convertible or exchangeable securities, other than as provided
in this Section 7.03. 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. However,
the Company will carry forward any adjustments that are less than 1% of the applicable Conversion
Rate and make such carried-forward adjustments, regardless of whether the aggregate adjustment is
less than 1% of the Conversion Rate then in effect at such time, (i) in connection with any
subsequent adjustment to the Conversion Rate or (ii) on each trading day of any Observation Period
in connection with any conversion of the Securities.

 

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(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. Unless and until a Responsible Officer of the Trustee and the
Conversion Agent shall have received such Officers’ Certificate, neither the Trustee nor the
Conversion Agent shall be deemed to have knowledge of any adjustment of the Conversion Rate and may
assume without inquiry that the last
Conversion Rate of which a Responsible Officer of the Trustee or the Conversion Agent, as
applicable, has actual 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 each Holder at such Holder’s last address
appearing on the Security Register provided for in Section 3.05 of this Indenture, within 20 days
of the effective date of such adjustment. Failure to deliver such notice shall not affect the
legality or validity of any such adjustment.

(j) In any case in which this Section 7.03 provides that an adjustment shall become effective
immediately after (1) an Ex Date or Effective Date for an event or (2) the expiration date for any
tender or exchange offer pursuant to Section 7.03(e) (each an “Adjustment Determination Date”), the
Company may elect to defer until the occurrence of the applicable Adjustment Event (as hereinafter
defined) (x) issuing to the Holder of any Security converted after such Adjustment Determination
Date and before the occurrence of such Adjustment Event, the additional shares of Common Stock or
other securities issuable upon such conversion by reason of the adjustment required by such
Adjustment Event over and above the Common Stock issuable upon such conversion before giving effect
to such adjustment and (y) paying to such Holder any amount in cash in lieu of any fraction
pursuant to Section 7.03. For purposes of this Section 7.03(j), the term “Adjustment Event” shall
mean:

(i) in any case referred to in clause (1) hereof, the occurrence of such event,

(ii) in any case referred to in clause (2) hereof, the date a sale or exchange of
Common Stock pursuant to such tender or exchange offer is consummated and becomes
irrevocable.

(k) For purposes of this Section 7.03, the number of shares of Common Stock at any time
outstanding shall not include shares held in the treasury of the Company but shall include shares
issuable in respect of scrip certificates issued in lieu of fractions of shares of Common Stock.
The Company will not pay any dividend or make any distribution on shares of Common Stock held in
the treasury of the Company.

 

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(l) Notwithstanding any of the foregoing, the Conversion Rate will not be adjusted: (i) upon
the issuance of any shares of Common Stock pursuant to any present or future plan providing for the
reinvestment of dividends or interest payable on the securities of the Company and the investment
of additional optional amounts in shares of Common Stock under any plan; (ii) upon the issuance of
any shares of Common Stock or options or rights to purchase those shares pursuant to any present or
future employee, director or consultant benefit plan or program of or assumed by the Company or any
Subsidiary; (iii) upon the issuance of any shares of Common Stock pursuant to any option, warrant,
right or exercisable, exchangeable or convertible security not described in clause (ii) and
outstanding as of the date the Securities were first issued; (iv) for any dividend or distribution
in connection with a merger, sale or conveyance effected solely for the purpose of changing the
Company’s jurisdiction of incorporation as permitted by the terms of this Indenture; (v) for a
change in the par value of the Common Stock; or (vi) for accrued and unpaid Interest.

Section 7.04. Shares to be Fully Paid. The Company shall provide, free from preemptive
rights, out of its authorized but unissued shares or shares held in treasury, sufficient shares of
Common Stock to provide for conversion of the Securities from time to time as such Securities are
presented for conversion.

Section 7.05. Adjustments of Prices. Whenever a provision of this Indenture requires the
calculation of the Last Reported Sale Prices, Daily VWAP, the Daily Conversion Values or the Daily
Settlement Amounts over a span of multiple days (including an Observation Period and the Stock
Price for purposes of a Make-Whole Fundamental Change), the Company’s Board of Directors will make
appropriate adjustments to each to account for any adjustment to the Conversion Rate that becomes
effective, or any event requiring an adjustment to the Conversion Rate where the Ex Date of the
event occurs, at any time during the period when the Last Reported Sale Prices, the Daily VWAPs,
the Daily Conversion Values or the Daily Settlement Amounts are to be calculated, including upon
the occurrence of multiple events that each result in an adjustment to the Conversion Rate in such
period.

Section 7.06. Adjustments upon Certain Fundamental Changes. (a) If a Make-Whole Fundamental
Change occurs and a Holder elects to convert its Securities in connection with such Make-Whole
Fundamental Change, the Company shall increase the Conversion Rate for the Securities so
surrendered for conversion by a number of additional shares of Common Stock (the “Additional
Shares”) under the circumstances and as described below. A conversion of Securities shall be
deemed for these purposes to be “in connection with” such Make-Whole Fundamental Change if the
Notice of Conversion of the Securities is received by the Conversion Agent from, and including, the
effective date of the Make-Whole Fundamental Change up to, and including, the Business Day
immediately prior to the related Fundamental Change Repurchase Date (or, in the case of a
Make-Whole Fundamental Change that would have been a Fundamental Change but for proviso (ii) in
clause (2) of the definition thereof, the 35th Trading
Day immediately following the effective date of such Make-Whole Fundamental Change).

 

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(b) The number of Additional Shares, if any, 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 Make-Whole Fundamental Change occurs or becomes effective (the “Make-Whole
Effective Date”) and the Stock Price paid (or deemed paid) per share of Common Stock in the
Make-Whole Fundamental Change; provided that if the actual Stock Price is between two Stock Price
amounts in such table or the Make-Whole Effective Date is between two Make-Whole Effective Dates in
such 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 earlier and later Effective Dates, as applicable, based on a 365-day year; provided
further that if (1) the Stock Price is greater than $75.00 per share of Common Stock (subject to
adjustment in the same manner and at the same time as set forth in Section 7.06(c)), no Additional
Shares will be added to the Conversion Rate, and (2) the Stock Price is less than $25.24 per share
(subject to adjustment in the same manner as set forth in Section 7.06(c)), no Additional Shares
will be added to the Conversion Rate. Notwithstanding the foregoing, in no event will the total
number of Additional Shares issuable upon conversion in connection with a Make-Whole Fundamental
Change exceed 6.6033 shares per $1,000 Principal Amount of Securities provided that this limit will
be subject to adjustment in the same manner as set forth in Section 7.03).

(c) The Stock Prices set forth in the column headings of the table in Schedule A
hereto shall be adjusted as of any date on which the Conversion Rate of the Securities 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 such adjustment and the denominator of which is the Conversion Rate as so
adjusted. The number of Additional Shares set forth in such table will be adjusted in the same
manner and at the same time as the Conversion Rate as set forth in Section 7.03 (other than by
operation of an adjustment to the Conversion Rate by adding Additional Shares).

(d) The table in Schedule A hereto sets forth the number of additional shares to be
received per $1,000 Principal Amount of Securities.

(e) Upon surrender of Securities for conversion in connection with a Make-Whole Fundamental
Change, the Company shall pay or deliver, as the case may be, in lieu of shares of Common Stock,
including the Additional Shares, cash or a combination of cash and shares of Common Stock as
provided under Section 7.02; provided, however, that if the consideration for the Common Stock in
any Make-Whole Fundamental Change described in clause (2) of the definition of Fundamental Change
is comprised entirely of cash, for any conversion of Securities following the Make-Whole Effective
Date, the conversion obligation
will be calculated based solely on the Stock Price for the transaction and will be deemed to
be an amount of cash per $1,000 Principal Amount of converted Securities equal to the applicable
Conversion Rate (including any adjustment) multiplied by the Stock Price. In such event, the
conversion obligation shall be determined and paid to Holders in cash on the third Business Day
following the Conversion Date. The Company shall notify Holders of the Make-Whole Effective Date
(the “Make-Whole Fundamental Change Notice”) and issue a press release announcing such Make-Whole
Effective Date no later than five Business Days after such Make-Whole Effective Date.

 

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(f) At the Company’s option, in lieu of increasing the Conversion Rate as described in this
Section 7.06 in the event of a Make-Whole Fundamental Change, the Company may elect to make a cash
payment in respect of the Additional Shares. Such cash payment to any Holder electing to convert
its Securities would be equal to the number of Additional Shares issuable upon conversion
determined by reference to the table in Schedule A multiplied by the effective share price
of the transaction which constitutes a Fundamental Change. Any such election by the Company will be
disclosed in the Fundamental Change Company Notice. Once this notice has been provided, the
Company may not modify or withdraw its election.

Section 7.07. Effect of Recapitalization, Reclassification, Consolidation, Merger or Sale.
(a) If any of the following events occur:

(i) any recapitalization, reclassification or change of the Common Stock (other than
changes resulting from a subdivision or combination);

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

(iii) any sale, lease or other transfer to any other Person of the consolidated
assets of the Company and the Company’s Subsidiaries substantially as an entirety; or

(iv) any statutory share exchange,

in each case as a result of which the Common Stock would be converted into, or exchanged for,
stock, other securities, other property or assets (including cash or any combination thereof),
then, at and after the effective time of the transaction, the right to convert each $1,000
Principal Amount of Securities shall be changed into a right to convert such principal amount of
Securities into the kind and amount of shares of stock, other securities or other property or
assets (including cash or any combination thereof) that a holder of a number of shares of Common
Stock equal to the Conversion Rate immediately prior to such transaction would have owned or been
entitled to receive (the “Reference Property”) upon such transaction, with each “unit of Reference
Property” meaning the kind and
amount of Reference Property that a holder of one share of Common Stock is entitled to receive upon
such transaction. In such a case, any increase in the Conversion Rate by the Additional Shares as
described in Section 7.06 will not be payable in Additional Shares (or cash and Additional Shares),
but will represent a right to receive the aggregate amount of cash, securities and other property
into which the Additional Shares would convert in the transaction from the surviving entity (or a
direct or indirect parent thereof). However, at and after the effective time of such transaction,
(x) any amount otherwise payable in cash upon conversion of the Securities pursuant to Section 7.02
shall continue to be payable in cash, (y) the number of shares of Common Stock otherwise
deliverable upon conversion of the Securities pursuant to Section 7.02 shall instead be deliverable
in the amount and type of Reference Property that a holder of that number of shares of Common Stock
would have been entitled to receive in such transaction and (z) the Daily VWAP shall be calculated
based on the value of a unit of Reference Property.

 

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If the transaction causes the Common Stock to be converted into, or exchanged for, the right
to receive more than a single type of consideration (determined based in part upon any form of
stockholder election), then (i) the Reference Property into which the Securities will be
convertible shall be deemed to be the weighted average of the types and amounts of consideration
received by the holders of Common Stock that affirmatively make such election, and (ii) the unit of
Reference Property for purposes of the immediately preceding paragraph shall refer to the
consideration referred to in clause (i) attributable to one share of Common Stock. The Company
shall notify Holders, the Trustee and the Conversion Agent (if other than the Trustee) of such
weighted average as soon as practicable after such determination is made. The Company shall not
enter into any agreement to become a party to such a transaction unless the terms of the
transaction are consistent with this Section 7.07.

(b) The above provisions of this Section shall similarly apply to successive transactions
described in Section 7.07(a).

(c) In connection with any adjustment to the Conversion Rate described in Section 7.07(a), the
Initial Dividend Threshold shall be adjusted based on the number of shares of Common Stock
comprising the Reference Property and (if applicable) the value of any non-stock consideration
comprising the Reference Property. If the Reference Property is comprised solely of non-stock
consideration, the Initial Dividend Threshold will be zero.

Section 7.08. Certain Covenants.

(a) Before taking any action which would cause an adjustment reducing the Conversion Rate
below the then par value, if any, of the shares of Common Stock issuable upon conversion of the
Securities, the Company will take all corporate action which may, in the opinion of its counsel, be
necessary in order
that the Company may validly and legally issue shares of such Common Stock at such adjusted
Conversion Rate.

 

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The Company covenants that all shares of Common Stock issued upon conversion of Securities
will be fully paid and non-assessable by the Company and free from all taxes, liens and changes
with respect to the issue thereof.

(b) The Company covenants that, if any shares of Common Stock to be provided for the purpose
of conversion of Securities hereunder require registration with or approval of any governmental
authority under any federal or state law before such shares may be validly issued upon conversion,
the Company will in good faith and as expeditiously as possible, to the extent then permitted by
the rules and interpretations of the Commission (or any successor thereto), endeavor to secure such
registration or approval, as the case may be.

(c) The Company covenants that if at any time the Common Stock shall be listed on any other
National Securities Exchange or automated quotation system the Company will, if permitted and
required by the rules of such exchange or automated quotation system, list and keep listed, so long
as the Common Stock shall be so listed on such exchange or automated quotation system, all Common
Stock issuable upon conversion of the Securities.

Section 7.09. Responsibility of Trustee. The Trustee and any other Conversion Agent shall
not at any time be under any duty or responsibility to any Holder 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 shares of Common Stock, or of any securities or
property, which may at any time be issued or delivered upon the conversion of any Security; and the
Trustee and any other Conversion Agent make no representations with respect thereto. Neither the
Trustee nor any Conversion Agent shall be responsible for any failure of the Company to issue,
transfer or deliver any shares of Common Stock or stock certificates or other securities or
property or cash upon the surrender of any Security for the purpose of conversion or to comply with
any of the duties, responsibilities or covenants of the Company contained in this Article 7.
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 7.07 relating either to the kind or amount
of shares of stock or securities or property (including cash) receivable by Holders upon the
conversion of their Securities after any event referred to in such Section 7.07 or to any
adjustment to be made with respect thereto, but, subject to the provisions of Section 10.01, may
accept as conclusive evidence of the correctness of any such provisions, and shall be protected in
relying upon, the Officers’ Certificate (which
the Company shall be obligated to file with the Trustee prior to the execution of any such
supplemental indenture) with respect thereto.

 

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Section 7.10. Notice to Holders Prior to Certain Actions. In case:

(a) the Company shall declare a dividend (or any other distribution) on its Common Stock that
would require an adjustment in the Conversion Rate pursuant to Section 7.03;

(b) the Company shall authorize the granting to all of the holders of its Common Stock 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 Stock of the Company (other than a subdivision or
combination of its outstanding Common Stock, or a change in par value, or from par value to no par
value, or from no par value to par value), or of any consolidation or merger to which the Company
is a party and for which approval of any stockholders of the Company is required, or of the sale 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 the Conversion Agent and to be mailed to
each Holder at such Holder’s address appearing on the Security Register, provided for in Section
3.05 of this Indenture, as promptly as possible but in any event at least 10 days prior to the
applicable date hereinafter specified, 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 Stock 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 Stock of record shall be entitled to exchange their Common Stock 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.

Section 7.11. Stockholder Rights Plans. Each share of Common Stock issued upon conversion of
Securities pursuant to this Article 7 shall be entitled to receive the appropriate number of
rights, if any, and the certificates representing the Common Stock issued upon such conversion
shall bear such legends, if any, in each case as may be provided by the terms of any stockholder
rights plan adopted by the Company, as the same may be amended from time to time. If at
the time of conversion, however, the rights have separated from the shares of Common Stock in
accordance with the provisions of the applicable stockholder rights agreement so that the Holders
of the Securities would not be entitled to receive any rights in respect of Common Stock issuable
upon conversion of the Securities, the Conversion Rate will be adjusted at the time of separation
as if the Company has distributed to all holders of Common Stock, shares of Capital Stock of the
Company, evidences of indebtedness, assets, property, rights, options or warrants as provided in
Section 7.03(c), subject to readjustment in the event of the expiration, termination or redemption
of such rights.

 

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Section 7.12. Exchange in Lieu of Conversion.

(a) If at any time when a Holder surrenders Securities for conversion prior to the Stated
Maturity of the Securities the Company:

(i) has designated a financial institution (a “Designated Institution”) to accept
such Securities in exchange for shares of Common Stock and cash, as applicable, equal to
the consideration due upon conversion as provided in Section 7.02; and

(ii) notifies the Holder surrendering such Securities for conversion by the Close of
Business on the Trading Day immediately preceding the start of the applicable Observation
Period, that it has directed the Designated Institution to make an exchange in lieu of
conversion,

then, notwithstanding anything in this Indenture to the contrary, the Company may direct the
Conversion Agent to surrender such Securities, on or prior to the commencement of the applicable
Observation Period to the Designated Institution for exchange in lieu of conversion.

(b) If the Designated Institution accepts Securities surrendered for exchange, it shall notify
the Conversion Agent of the terms of such exchange and shall deliver cash and, if applicable, the
appropriate number of shares of Common Stock, as specified in Section 7.02 to the Conversion Agent
and the Conversion Agent shall deliver the cash and shares of Common Stock, as applicable, to the
Holder, within the time period specified in Section 7.02(j), which delivery shall be deemed to
satisfy the Company’s conversion obligations under this Article 7 with respect to such Holder.
Any Securities so exchanged by such Designated Institution shall remain Outstanding for all
purposes under this Indenture.

(c) If the Designated Institution agrees to accept any Securities for exchange but does not
timely deliver the related consideration to the Conversion Agent, or if the Designated Institution
does not accept such Securities for exchange, the Company shall, within the time period specified
in Section 7.02(j), convert such Securities into cash and shares of Common Stock, as applicable, in
accordance with the provisions of Section 7.02.

(d) For the avoidance of doubt, in no event will the Company’s designation of a financial
institution pursuant to this Section 7.12 require such financial institution to accept any
Securities for exchange (unless the institution has separately made an agreement with the Company).

 

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ARTICLE 8

Events of Default; Remedies

Section 8.01. Events of Default. “Event of Default,” wherever used herein, means any one of
the following events (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or
order of any court or any order, rule or regulation of any administrative or governmental body):

(a) default in the payment of Interest on any Securities when due and payable and such default
continues for a period of 30 days;

(b) default in the payment of the Principal Amount or Fundamental Change Repurchase Price on
any Security when due and payable;

(c) default in the Company’s obligation to deliver the cash and Common Stock, if any, payable
upon exercise of a Holder’s conversion rights in accordance with Article 7 hereof;

(d) failure by the Company to issue a Fundamental Change Company Notice or the notice required
pursuant to Section 7.01(a)(iii) or Section 7.01(a)(iv), in each case when due;

(e) failure by the Company to comply with its obligations under Article 9 hereof;

(f) default in the performance of any covenant or agreement of the Company in this Indenture
or the Securities (other than a default specified in paragraph (a) or (b) above), and such
default continues for a period of 60 days after there has been given, by registered or certified
mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least
25% in aggregate Principal Amount of the Outstanding Securities a written notice specifying such
default and requiring it to be remedied and stating that such notice is a “Notice of Default”
hereunder;

(g) default by the Company in the payment of the principal or Interest in excess of
$50,000,000 by the end of any applicable grace period after maturity of indebtedness for borrowed
money and continuance of such failure on any mortgage, agreement or other instrument under which
there may be outstanding, or by which there may be secured or evidenced any indebtedness for
borrowed money, whether such indebtedness now exists or is hereafter created;

 

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(h) the acceleration of indebtedness of the Company for borrowed money in an amount in excess
of $50,000,000 in the aggregate because of a default with respect to such indebtedness without such
indebtedness having been discharged or such acceleration having been cured, waived, rescinded or
annulled for a period of 30 days after written notice to the Company by the Trustee or to the
Company and Trustee by the Holders of at least 25% in aggregate Principal Amount of the Outstanding
Securities;

(i) the entry by a court having jurisdiction in the premises of (i) a decree or order for
relief in respect of the Company or any of its Significant Subsidiaries of a voluntary case or
proceeding under any applicable federal or state bankruptcy, insolvency, reorganization or other
similar law or (ii) a decree or order adjudging the Company or any of its Significant Subsidiaries
as bankrupt or insolvent, or approving as properly filed a petition seeking reorganization,
arrangement, adjustment or composition of or in respect of the Company or such Significant
Subsidiary under any applicable federal or state law or (iii) appointing a custodian, receiver,
liquidator, assignee, trustee, sequestrator or other similar official of the Company or any of its
Significant Subsidiary or of any substantial part of its respective property, or ordering the
winding up or liquidation of its affairs, and the continuance of any such decree or order for
relief or any such other decree or order unstayed and in effect for a period of 60 consecutive
days; or

(j) the commencement by the Company or any of its Significant Subsidiaries of a voluntary case
or proceeding under any applicable federal or state bankruptcy, insolvency, reorganization or other
similar law or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or the
consent by it to the entry of a decree or order for relief in respect of the Company or any of its
Significant Subsidiaries in an involuntary case or proceeding under any applicable federal or state
bankruptcy, insolvency, reorganization or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding against it, or the filing by it of a petition or answer
or consent seeking reorganization or relief under any applicable federal or state law, or the
consent by it to the filing of such petition or to the appointment of or taking possession by a
custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the
Company or any of its Significant Subsidiaries or of any substantial part of its property, or the
making by it of an assignment for the benefit of creditors, or the admission by it in writing of
its inability to pay its debts generally as they become due, or the taking of corporate action by
the Company or any of its Significant Subsidiaries in furtherance of any such action.

Section 8.02. Acceleration of Maturity; Rescission and Annulment. (a) If an Event of Default
(other than those specified in Section 8.01(i) and Section 8.01(j)) occurs and is continuing,
then and in every such case the Trustee or the Holders of not less than 25% in aggregate Principal
Amount of the Outstanding Securities may declare the Principal Amount plus accrued and unpaid
Interest on all the Outstanding Securities to be due and payable immediately, by a notice in
writing to the Company (and to the Trustee if given by Holders), and upon any such declaration
such Principal Amount plus accrued and unpaid Interest shall become immediately due and payable.

 

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Notwithstanding the foregoing, in the case of an Event of Default specified in Section
8.01(i) or Section 8.01(j), the Principal Amount plus accrued and unpaid Interest on all
Outstanding Securities will ipso facto become due and payable without any declaration or other act
on the part of the Trustee or any Holder.

(b) At any time after such a declaration of acceleration has been made and before a judgment
or decree for payment of the money due has been obtained by the Trustee as hereinafter in this
Article 8 provided, the Holders of a majority in aggregate Principal Amount of the Outstanding
Securities, by written notice to the Company and the Trustee, may rescind and annul such
declaration and its consequences (except with respect to nonpayment of principal, including the
Fundamental Change Price, if applicable, or interest or with respect to the failure to deliver the
consideration due upon conversion) if:

(i) such rescission and annulment will not conflict with any judgment or decree of a
court of competent jurisdiction; and

(ii) all Events of Default, other than the non-payment of the Principal Amount plus
accrued and unpaid Interest on Securities that have become due solely by such declaration
of acceleration, have been cured or waived as provided in Section 8.13.

No such rescission shall affect any subsequent Default or impair any right consequent thereon.

Section 8.03. Additional Interest. (a) If, at any time during the six-month period beginning
on, and including, the date which is six months after the last Issue Date of the Securities, the
Company fails to timely file any document or report that the Company is required to file with the
Commission pursuant to Section 13 or 15(d) of the Exchange Act, as applicable (after giving effect
to all applicable grace periods thereunder and other than current reports on Form 8-K), or the
Securities are not otherwise freely tradable by Holders, other than the Company’s affiliates (as a
result of restrictions pursuant to U.S. securities law or the terms of this Indenture or the
Securities), the Company shall pay Additional Interest on the Securities which shall accrue on the
Securities at a rate of 0.50% per annum of the Principal Amount of Outstanding Securities for each
day during such period for which the Company’s failure to file, or the failure of the Securities to
be freely tradable by Holders, other than the Company’s affiliates, as described above, has
occurred and is continuing ending on the date that is one year after the last Issue Date of the
Securities.

 

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(b) If, and for so long as, the restrictive legend on the Securities has not been removed in
accordance with Article 2 or the Securities are not otherwise freely tradable by Holders, other
than the Company’s affiliates (without restrictions pursuant to U.S. securities laws or the terms
of this Indenture or the Securities), as of the 365th day after the last Issue Date of the
Securities (or the next succeeding Business Day if such 365th day is not a Business Day), the
Company shall pay Additional Interest on the Securities which shall accrue on the Securities at a
rate equal to 0.50% per annum of the Principal Amount of Outstanding Securities until, as
applicable (i) the restrictive legend on the Securities has been removed in accordance with Article
2, or (ii) the Securities are freely tradable by Holders other than the Company’s Affiliates
(without restrictions pursuant to U.S. securities law or the terms of this Indenture or the
Securities)

(c) Notwithstanding Section 8.02, if so elected by the Company, the sole remedy for any Event
of Default relating Company’s failure to comply with Section 5.07 hereof, will for the first 360
days after the occurrence of such an Event of Default consist exclusively of the right to receive
Additional Interest on the Securities at an annual rate equal to 0.25% per annum of the Principal
Amount of Outstanding Securities during the first 360 day period on which such Event of Default is
continuing beginning on, and including, the date on which such an Event of Default first occurs.
The Additional Interest payable pursuant to this Section 8.03(c) will be in addition to any
Additional Interest that may accrue pursuant to Section 8.03(a) or Section 8.03(b) hereof. If the
Company so elects, the Additional Interest payable under this Section 8.03(c) will be payable on
all Outstanding Securities from and including the date on which such Event of Default first occurs,
to the 360th day thereafter, or such earlier date on which such Event of Default has
been cured or waived. On the 361st day after such Event of Default (or earlier, if the
Event of Default is cured or waived prior to such 361st day), Additional Interest
payable pursuant to this Section 8.03(c) will cease to accrue and, to the extent the Event of
Default is continuing after such 361st day, the Securities will be subject to
acceleration as provided in Section 8.02. In the event the Company does not elect to pay the
Additional Interest payable pursuant to this Section 8.03(c) upon an Event of Default in accordance
with this paragraph, the Securities will be subject to acceleration as provided in Section 8.02.

In order to elect to pay the Additional Interest payable pursuant to this Section 8.03 as the
sole remedy during the first 360 days after the occurrence of an Event of Default relating to the
failure to comply with Section 5.07 in accordance with the immediately preceding paragraph, the
Company must notify all Holders, the Trustee and Paying Agent of such election prior to the
beginning of such 360 day period. Upon the failure to timely give all Holders, the Trustee and
Paying Agent such notice, the Securities will be subject to acceleration as provided in Section
8.02.

(d) For purposes of this Section 8.03: an “affiliate” of the Company means, at any time, (i) a
Person that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with, the Company
and/or (ii) has been such a Person within the preceding three months; and “freely tradable” means
such Securities may be sold pursuant to Rule 144 without compliance with the volume and manner of
sale restrictions thereof.

 

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Section 8.04. Collection of indebtedness and Suits For Enforcement by Trustee. The Company
covenants that if a Default is made in the payment of the Principal Amount plus accrued and unpaid
Interest at the Maturity thereof or in the payment of the Fundamental Change Repurchase Price in
respect of any Security, the Company will, upon demand of the Trustee, pay to it, for the benefit
of the Holders of such Securities, the whole amount then due and payable on such Securities, and,
in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel.

If an Event of Default occurs and is continuing, the Trustee may, but shall not be obligated
to, pursue any available remedy to collect the payment of the Principal Amount plus accrued but
unpaid Interest on the Securities or to enforce the performance of any provision of the Securities
or this Indenture. The Trustee may maintain a proceeding even if the Trustee does not possess any
of the Securities or does not produce any of the Securities in the proceeding. A delay or omission
by the Trustee or any Holder in exercising any right or remedy accruing upon an Event of Default
shall not impair the right or remedy or constitute a waiver of, or acquiescence in, the Event of
Default. No remedy is exclusive of any other remedy. All available remedies are cumulative.

Section 8.05. Trustee May File Proofs of Claim. In case of any judicial proceeding relative
to the Company (or any other obligor upon the Securities), its property or its creditors, the
Trustee shall be entitled and empowered, by intervention in such proceeding or otherwise, to take
any and all actions authorized under the Trust Indenture Act in order to have claims of the Holders
and the Trustee allowed in any such proceeding. In particular, the Trustee shall be authorized to
collect and receive any moneys or other property payable or deliverable on any such claims and to
distribute the same; and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by each Holder to make
such payments to the Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel and any
other amounts due the Trustee under Section 10.07.

No provision of this Indenture shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder thereof or to
authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

 

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Section 8.06. Application of Money Collected. Any money collected by the Trustee pursuant to
this Article 8 shall be applied in the following order, at the date or dates fixed by the Trustee
and, in case of the distribution of such money to Holders, upon presentation of the Securities and
the notation thereon of the payment if only partially paid and upon surrender thereof if fully
paid:

FIRST: To the payment of all amounts due the Trustee under Section 10.07;

SECOND: To the payment of the amounts then due and unpaid on the Securities for the
Principal Amount, Fundamental Change Repurchase Price or Interest, as the case may be, in
respect of which or for the benefit of which such money has been collected, ratably,
without preference or priority of any kind, according to the amounts due and payable on
such Securities; and

THIRD: To the payment of the remainder, if any, to the Company or as a court of
competent jurisdiction shall direct in writing.

Section 8.07. Limitation on Suits. No Holder of any Security shall have any right to
institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the
appointment of a receiver or trustee, or for any other remedy hereunder (other than in the case of
an Event of Default specified in Section 8.01(a), Section 8.01(b) or Section 8.01(c)), unless:

(i) such Holder has previously given written notice to the Trustee of a continuing
Event of Default;

(ii) the Holders of not less than 25% in aggregate Principal Amount of the
Outstanding Securities shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default in its own name as Trustee hereunder;

(iii) such Holder or Holders have offered to the Trustee indemnity reasonably
satisfactory to it against the costs, expenses and liabilities to be incurred in
compliance with such request;

(iv) the Trustee for 60 days after its receipt of such notice, request and offer of
security or indemnity has failed to institute any such proceeding; and

(v) no direction, in the opinion of the Trustee, inconsistent with such written
request has been given to the Trustee during such 60-day period by the Holders of a
majority in aggregate Principal Amount of the Outstanding Securities;

 

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it being understood and intended that no one or more Holders shall have any right in any manner
whatever by virtue of, or by availing itself of, any provision of this
Indenture to affect, disturb or prejudice the rights of any other Holders, or to obtain or to seek
to obtain priority or preference over any other Holders or to enforce any right under this
Indenture, except in the manner herein provided and for the equal and ratable benefit of all the
Holders.

Section 8.08. Unconditional Right of Holders to Receive Payment. Notwithstanding any other
provision of this Indenture, the right of any Holder to receive payment of the Principal Amount,
Fundamental Change Repurchase Price or accrued and unpaid Interest in respect of the Securities
held by such Holder, on or after the respective due dates expressed in the Securities or
Fundamental Change Repurchase Date, as applicable, and to convert the Securities in accordance with
Article 7, or to bring suit for the enforcement of any such payment on or after such respective
dates or the right to convert, shall not be impaired or affected adversely without the consent of
such Holder.

Section 8.09. Restoration of Rights and Remedies. If the Trustee or any Holder has
instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding
has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee
or to such Holder, then and in every such case, subject to any determination in such proceeding,
the Company, the Trustee and the Holders shall be restored severally and respectively to their
former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders
shall continue as though no such proceeding had been instituted.

Section 8.10. Rights and Remedies Cumulative. Except as otherwise provided with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Securities in the last paragraph
of Section 3.06, no right or remedy herein conferred upon or reserved to the Trustee or to the
Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall,
to the extent permitted by law, be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

Section 8.11. Delay or Omission Not Waiver. No delay or omission of the Trustee or of any
Holder of any Security to exercise any right or remedy accruing upon any Event of Default shall
impair any such right or remedy or constitute a waiver of any such Event of Default or an
acquiescence therein. Every right and remedy given by this Article 8 or by law to the Trustee or
to the Holders may be exercised from time to time, and as often as may be deemed expedient, by the
Trustee or by the Holders, as the case may be.

 

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Section 8.12. Control by Holders. The Holders of a majority in Principal Amount of the
Outstanding Securities shall have the right to direct the time,
method and place of conducting any proceeding for any remedy available to the Trustee or
exercising any trust or power conferred on the Trustee, provided that:

(i) such direction shall not be in conflict with any rule of law or with this
Indenture;

(ii) the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction; and

(iii) the Trustee has not determined that such action would either subject it to
liability or be unduly prejudicial to the rights of the other Holders.

Section 8.13. Waiver of Past Defaults. The Holders of not less than a majority in Principal
Amount of the Outstanding Securities may on behalf of the Holders of all the Securities waive any
past Default hereunder and its consequences (including waivers obtained in connection with a
repurchase of, or tender offer or exchange for Securities), except a Default:

(i) Described in Section 8.01(a), Section 8.01(b) or Section 8.01(c); or

(ii) in respect of a covenant or provision hereof which under Article 13 cannot be
modified or amended without the consent of the Holder of each Outstanding Security
affected.

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

Section 8.14. Undertaking for Costs. In any suit for the enforcement of any right or remedy
under this Indenture or in any suit against the Trustee for any action taken or omitted by it as
Trustee, in either case in respect of the Securities, a court may require any party litigant in
such suit to file an undertaking to pay the costs of the suit, and the court may assess reasonable
costs, including reasonable attorney’s fees and expenses, against any party litigant in the suit
having due regard to the merits and good faith of the claims or defenses made by the party
litigant; but the provisions of this Section 8.14 shall not apply to any suit instituted by the
Company, to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of
Holders, holding in the aggregate more than 10% in Principal Amount of the Outstanding Securities,
or to any suit instituted by any Holder for the enforcement of the payment of the Principal Amount
on any Security on or after Maturity of such Security, the Fundamental Change Repurchase Price or
the Settlement Amount.

 

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Section 8.15. Waiver of Stay or Extension Laws. The Company covenants (to the extent that it
may lawfully do so) that it will not at any time
insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of,
any stay, or extension law wherever enacted, now or at any time hereafter in force, which may
affect the covenants or the performance of this Indenture; and the Company (to the extent that it
may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants
that it will not hinder, delay or impede the execution of any power herein granted to the Trustee,
but will suffer and permit the execution of every such power as though no such law had been
enacted.

Section 8.16. Violations of Certain Covenants. A violation of Section 5.07 or any other
covenant or agreement in this Indenture that expressly provides that a violation of such covenant
or agreement shall not constitute an Event of Default may only be enforced by the Trustee by
instituting a legal proceeding against the Company for enforcement of such covenant or agreement.

ARTICLE 9

Consolidation, Merger, Conveyance, Transfer or Lease

Section 9.01. Company May Consolidate, Etc., Only on Certain Terms. The Company shall not
consolidate with or merge with or into another Person or sell, convey, transfer or lease all or
substantially all of its properties and assets to another Person, unless:

(a) either (i) the Company is the resulting, surviving or transferee Person or (ii) the Person
(if other than the Company) formed by such consolidation or into which the Company is merged or the
Person which acquires by conveyance or transfer, or which leases, the properties and assets of the
Company substantially as an entirety (the “Surviving Entity”), (1) is a Corporation organized and
validly existing under the laws of the United States of America, any State thereof or the District
of Columbia and (2) the Surviving Entity expressly assumes, by an indenture supplemental hereto,
executed and delivered to the Trustee, all of the obligations of the Company under the Securities,
and this Indenture; and

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

Section 9.02. Successor Substituted. Upon any consolidation of the Company with, or merger
with or into or sale of the Company into, any other Person or any conveyance, transfer or lease of
all or substantially all of the properties and assets of the Company in accordance with Section
9.01, the successor Person formed by such consolidation or which the Company is merged with or into
or sold or to which such conveyance, transfer or lease is made shall succeed to, and be substituted
for, and may exercise every right and power of, the Company under this Indenture with the same
effect as if such successor Person had been named as the Company herein, and thereafter, except in
the case of a
lease of all or substantially all of the Company’s properties and assets, the predecessor
Person shall be relieved of all obligations and covenants under this Indenture and the Securities.

 

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ARTICLE 10

The Trustee

Section 10.01. Duties and Responsibilities of Trustee. The Trustee, prior to the occurrence
of an Event of Default and after the curing of all Events of Default which may have occurred,
undertakes to perform such duties and only such duties as are specifically set forth in this
Indenture and no implied covenants or obligations shall be read into this Indenture against the
Trustee. In case an Event of Default has occurred (which has not been cured or waived), the
Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the
same degree of care and skill in their exercise, as a prudent person would exercise or use under
the circumstances in the conduct of his own affairs.

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

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

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

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

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

 

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(c) the Trustee shall not be liable with respect to any action taken or omitted to be taken by
it in good faith in accordance with the written direction of the Holders of not less than a
majority in Principal Amount of the Securities at the time Outstanding determined as provided in
Section 1.03 relating to the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this
Indenture;

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

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

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

None of the provisions contained in this Indenture shall require the Trustee to expend or risk
its own funds or otherwise incur personal financial liability in the performance of any of its
duties or in the exercise of any of its rights or powers, if there is reasonable ground for
believing that the repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it.

Section 10.02. Notice of Defaults. The Trustee shall give the Holders notice of any Default
hereunder known to the Trustee within 60 days after the occurrence thereof; provided, that (except
in the case of any Default in the payment of Principal Amount or Interest on any of the Securities
or Fundamental Change Repurchase Price or a Default in the payment or delivery of the consideration
due upon conversion), the Trustee shall be protected in withholding such notice if and so long as a
committee of officers of the Trustee in good faith determines that the withholding of such notice
is in the interest of the Holders.

Section 10.03. Reliance on Documents, Opinions, Etc. Except as otherwise provided in
Section 10.01:

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

 

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

(c) the Trustee may consult with counsel of its own selection and any advice or Opinion of
Counsel shall be full and complete authorization and protection in respect of any action taken or
omitted by it hereunder in good faith and in accordance with such advice or Opinion of Counsel;

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

(e) the Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture or other paper or document, but the Trustee, in its discretion, may
make such further inquiry or investigation into such facts or matters as it may see fit, and, if
the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to
examine the books, records and premises of the Company, personally or by agent or attorney (at the
reasonable expense of the Company and shall incur no liability of any kind by reason of such
inquiry or investigation);

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

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

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

(i) the Trustee shall not be deemed to have notice of any Default or Event of Default unless a
Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any
event which is in fact such a
Default is received by the Trustee at the Corporate Trust Office of the Trustee, and such
notice references the Securities and this Indenture; and

 

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

Section 10.04. No Responsibility for Recitals, Etc. The recitals contained herein and in the
Securities (except in the Trustee’s certificate of authentication) shall be taken as the statements
of the Company, and the Trustee assumes no responsibility for the correctness of the same. The
Trustee makes no representations as to the validity or sufficiency of this Indenture or of the
Securities. The Trustee shall not be accountable for the use or application by the Company of any
Securities or the proceeds of any Securities authenticated and delivered by the Trustee in
conformity with the provisions of this Indenture.

Section 10.05. Trustee, Paying Agents, Conversion Agents or Registrar May Own Securities.
The Trustee, any Paying Agent, any Conversion Agent or Security Registrar, in its individual or any
other capacity, may become the owner or pledgee of Securities with the same rights it would have if
it were not Trustee, Paying Agent, Conversion Agent or Security Registrar.

Section 10.06. Monies to be Held in Trust. Subject to the provisions of Section 12.02, all
monies and properties received by the Trustee shall, until used or applied as herein provided, be
held in trust for the purposes for which they were received. Money held by the Trustee in trust
hereunder need not be segregated from other funds except to the extent required by law. The
Trustee shall be under no liability for interest on any money received by it hereunder except as
may be agreed in writing from time to time by the Company and the Trustee.

Section 10.07. Compensation and Expenses of Trustee. The Company covenants and agrees to pay
to the Trustee from time to time, and the Trustee shall be entitled to, reasonable compensation for
all services rendered by it hereunder in any capacity (which shall not be limited by any provision
of law in regard to the compensation of a trustee of an express trust) as mutually agreed to from
time to time in writing between the Company and the Trustee, and the Company will pay or reimburse
the Trustee upon its request for all reasonable expenses, disbursements and advances reasonably
incurred or made by the Trustee in accordance with any of the provisions of this Indenture
(including the reasonable compensation and the expenses and disbursements of its counsel and of all
Persons not regularly in its employ) except any such expense, disbursement or advance as may arise
from its negligence, willful misconduct or bad faith. The Company also covenants to indemnify the
Trustee (or any officer, director or employee of the Trustee), in any capacity under this Indenture
and its agents and any authenticating agent for, and to hold them harmless against, any and all
loss,
liability, claim or expense incurred without negligence, willful misconduct or bad faith on
the part of the Trustee or such officers, directors, employees and agent or authenticating agent,
as the case may be, and arising out of or in connection with the acceptance or administration of
this trust or in any other capacity hereunder, including the costs and expenses of defending
themselves against any claim of liability in the premises. The obligations of the Company under
this Section 10.07 to compensate or indemnify the Trustee and to pay or reimburse the Trustee for
expenses, disbursements and advances shall be secured by a lien prior to that of the Securities
upon all property and funds held or collected by the Trustee as such, except funds held in trust
for the benefit of the holders of particular Securities. The obligation of the Company under this
Section 10.07 shall survive the satisfaction and discharge of this Indenture.

 

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When the Trustee and its agents and any authenticating agent incur expenses or render services
after an Event of Default specified in Section 8.01(i) or Section 8.01(j) with respect to the
Company occurs, the expenses and the compensation for the services are intended to constitute
expenses of administration under any bankruptcy, insolvency or similar laws.

Section 10.08. Conflicting Interests of Trustee. If the Trustee has or shall acquire a
conflicting interest within the meaning of the Trust Indenture Act, the Trustee shall either
eliminate such interest or resign, to the extent and in the manner provided by, and subject to the
provisions of, the Trust Indenture Act and this Indenture.

Section 10.09. Eligibility of Trustee. There shall at all times be a Trustee hereunder which
shall be a Person that is eligible pursuant to the Trust Indenture Act to act as such and has a
combined capital and surplus of at least $50,000,000 (or if such Person is a member of a bank
holding company system, its bank holding company shall have a combined capital and surplus of at
least $50,000,000). If such Person publishes reports of condition at least annually, pursuant to
law or to the requirements of any supervising or examining authority, then for the purposes of this
Section 10.09 the combined capital and surplus of such Person shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so published. If at any
time the Trustee shall cease to be eligible in accordance with the provisions of this Section
10.09, it shall resign promptly in the manner and with the effect hereinafter specified in this
Article 10.

Section 10.10. Resignation or Removal of Trustee. (a) The Trustee may at any time resign by
giving written notice of such resignation to the Company and to the Holders. Upon receiving such
notice of resignation, the Company shall promptly appoint a successor Trustee by written
instrument, in duplicate, executed by order of the Board of Directors, one copy of which instrument
shall be delivered to the resigning Trustee and one copy to the successor Trustee. If no successor
Trustee shall have been so appointed and have accepted appointment 60 days after the mailing of
such notice of resignation to the Holders, the resigning
Trustee may, upon 10 Business Days’ notice to the Company and the Holders, appoint a successor
identified in such notice or may petition, at the expense of the Company, any court of competent
jurisdiction for the appointment of a successor Trustee, or, if any Holder who has been a bona fide
Holder for at least six months may, subject to the provisions of Section 8.14, on behalf of
himself and all others similarly situated, petition any such court for the appointment of a
successor Trustee. Such court may thereupon, after such notice, if any, as it may deem proper and
prescribe, appoint a successor Trustee.

 

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

(i) the Trustee shall fail to comply with Section 10.08 after written request
therefor by the Company or by any Holder who has been a bona fide Holder of a Security or
Securities for at least six months; or

(ii) the Trustee shall cease to be eligible in accordance with the provisions of
Section 10.09 and shall fail to resign after written request therefor by the Company or
by any such Holder; or

(iii) the Trustee shall become incapable of acting, or shall be adjudged a bankrupt
or insolvent, or a receiver of the Trustee or of its property shall be appointed, or any
public officer shall take charge or control of the Trustee or of its property or affairs
for the purpose of rehabilitation, conservation or liquidation; then, in any such case,
the Company may remove the Trustee and appoint a successor Trustee by written instrument,
in duplicate, executed by order of the Board of Directors, one copy of which instrument
shall be delivered to the Trustee so removed and one copy to the successor Trustee, or,
subject to the provisions of Section 8.14, any Holder who has been a bona fide Holder for
at least six months may, on behalf of himself and all others similarly situated, petition
any court of competent jurisdiction for the removal of the Trustee and the appointment of
a successor Trustee; provided, however, that if no successor Trustee shall have been
appointed and have accepted appointment 60 days after either the Company or the Holder has
removed the Trustee, the Trustee so removed may petition any court of competent
jurisdiction for an appointment of a successor Trustee. Such court may thereupon, after
such notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a
successor Trustee.

(c) The Holders of a majority in aggregate Principal Amount of the Securities at the time
Outstanding may at any time remove the Trustee and nominate a successor Trustee which shall be
deemed appointed as successor Trustee unless, within 10 days after notice to the Company of such
nomination, the Company objects thereto, in which case the Trustee so removed or any Holder, or if
such Trustee so removed or any Holder fails to act, the Company, upon the terms and conditions and
otherwise as in Section 10.10(a) provided, may petition any court of competent jurisdiction for an
appointment of a successor Trustee.

 

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(d) Any resignation or removal of the Trustee and appointment of a successor Trustee pursuant
to any of the provisions of this Section 10.10 shall become effective upon acceptance of
appointment by the successor Trustee as provided in Section 10.11.

Section 10.11. Acceptance by Successor Trustee. Any successor Trustee appointed as provided
in Section 10.10 shall execute, acknowledge and deliver to the Company and to its predecessor
Trustee an instrument accepting such appointment hereunder, and thereupon the resignation or
removal of the predecessor Trustee shall become effective and such successor Trustee, without any
further act, deed or conveyance, shall become vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with like effect as if originally named as trustee
herein; but, nevertheless, on the written request of the Company or of the successor Trustee, the
trustee ceasing to act shall, upon payment of any amount then due it pursuant to the provisions of
Section 10.07, execute and deliver an instrument transferring to such successor Trustee all the
rights and powers of the trustee so ceasing to act. Upon request of any such successor Trustee,
the Company shall execute any and all instruments in writing for more fully and certainly vesting
in and confirming to such successor Trustee all such rights and powers. Any trustee ceasing to act
shall, nevertheless, retain a lien upon all property and funds held or collected by such trustee as
such, except for funds held in trust for the benefit of Holders of particular Securities, to secure
any amounts then due it pursuant to the provisions of Section 10.07.

No successor Trustee shall accept appointment as provided in this Section 10.11 unless, at
the time of such acceptance, such successor Trustee shall be qualified under the provisions of
Section 10.08 and be eligible under the provisions of Section 10.09.

Upon acceptance of appointment by a successor Trustee as provided in this Section 10.11, the
Company (or the former trustee, at the written direction of the Company) shall mail or cause to be
mailed notice of the succession of such trustee hereunder to the Holders at their addresses as they
shall appear on the Security Register. If the Company fails to mail such notice within 10 days
after acceptance of appointment by the successor Trustee, the successor Trustee shall cause such
notice to be mailed at the expense of the Company.

Section 10.12. Succession by Merger, Etc.. Any Corporation into which the Trustee may be
merged or converted or with which it may be consolidated, or any Corporation resulting from any
merger, conversion or consolidation to which the Trustee shall be a party, or any Corporation
succeeding to all or substantially all of the corporate trust business of the Trustee (including
any trust created by this Indenture), shall be the successor to the Trustee hereunder without the
execution or filing of any paper or any further act on the part of any of the parties hereto,
provided that in the case of any Corporation succeeding to all or substantially all of the
corporate trust business of the Trustee, such Corporation
shall be qualified under the provisions of Section 10.08 and eligible under the provisions of
Section 10.09.

 

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

Section 10.13. Preferential Collection of Claims. If and when the Trustee shall be or become
a creditor of the Company (or any other obligor upon the Securities), the Trustee shall be subject
to the provisions of the Trust Indenture Act regarding the collection of the claims against the
Company (or any such other obligor).

ARTICLE 11

Holders’ Lists and Reports by Trustee

Section 11.01. Company to Furnish Trustee Names and Addresses of Holders. The Company will
furnish or cause to be furnished to the Trustee:

(a) semi-annually, not more than 15 days after each Record Date, a list, in such form
as the Trustee may reasonably require, of the names and addresses of the Holders as of
such Record Date; and

(b) at such other times as the Trustee may request in writing, within 30 days after
the receipt by the Company of any such request, a list of similar form and content as of a
date not more than 15 days prior to the time such list is furnished;

excluding from any such list names and addresses received by the Trustee in its capacity as
Security Registrar; provided, however, that no such list need be furnished so long as the Trustee
is acting as Security Registrar.

Section 11.02. Preservation of Information; Communications to Holders. (a) The Trustee shall
preserve, in as current a form as is reasonably practicable, the names and addresses of Holders
contained in the most recent list furnished to the Trustee as provided in Section 11.01 and the
names and addresses of Holders
received by the Trustee in its capacity as Security Registrar. The Trustee may destroy any
list furnished to it as provided in Section 11.01 upon receipt of a new list so furnished.

 

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

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

Section 11.03. Reports by Trustee. (a) The Trustee shall transmit to Holders such reports
concerning the Trustee and its actions under this Indenture as may be required pursuant to the
Trust Indenture Act at the times and in the manner provided pursuant thereto. Reports so required
to be transmitted at stated intervals of not more than 12 months shall be transmitted no later than
June 15 in each calendar year, commencing on June 15, 2011. Each such report shall be dated as of
a date not more than 60 days prior to the date of transmission.

(b) A copy of each such report shall, at the time of such transmission to Holders, be filed by
the Trustee with each stock exchange, if any, upon which the Securities are listed, with the
Commission and with the Company. The Company will notify the Trustee when the Securities are
listed on any stock exchange or of any delisting thereof.

ARTICLE 12

Satisfaction and Discharge

Section 12.01. Satisfaction and Discharge of Indenture. When (a) the Company delivers to the
Trustee all Outstanding Securities (other than Securities replaced pursuant to Section 3.07) for
cancellation or (b) all outstanding Securities have become due and payable, and the Company
irrevocably deposits with the Trustee or delivers to the Holders, as applicable, cash and/or shares
of Common Stock (solely to satisfy outstanding conversions, if applicable) sufficient to pay all
amounts due and owing on all Outstanding Securities (other than Securities replaced pursuant to
Section 3.07), and if in either case the Company pays all other sums payable hereunder by the
Company with respect to the Outstanding Securities, then this Indenture shall cease to be of
further effect with respect to the Securities or any Holders. The Trustee shall acknowledge
satisfaction and discharge of this Indenture with respect to the Securities on demand of the
Company accompanied by an Officers’ Certificate and an Opinion of Counsel and at the cost and
expense of the Company.

 

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Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 10.07 and, if money shall have been deposited with the Trustee
pursuant to Section 12.01, the obligations of the Trustee under Section 12.01 and Section 12.04
shall survive such satisfaction and discharge.

Section 12.02. Application of Trust Money. Subject to the provisions of Section 12.04, all
money deposited with the Trustee pursuant to Section 12.01 shall be held in trust and applied by
it, in accordance with the provisions of the Securities and this Indenture, to the payment, either
directly or through any Paying Agent (including the Company acting as its own Paying Agent) to the
Persons entitled thereto, of the principal and Interest for whose payment such money has been
deposited with the Trustee.

Section 12.03. Paying Agent to Repay Monies Held. Upon the satisfaction and discharge of
this Indenture, all monies then held by any Paying Agent of the Securities (other than the Trustee)
shall, upon written request of the Company, be repaid to it or paid to the Trustee, and thereupon
such Paying Agent shall be released from all further liability with respect to such monies.

Section 12.04. Return of Unclaimed Monies. Subject to the requirements of applicable law, any
monies deposited with or paid to the Trustee for payment of the principal of or Interest, on
Securities and not applied but remaining unclaimed by the holders of Securities for two years after
the date upon which the principal of or Interest on such Securities, as the case may be, shall have
become due and payable, shall be repaid to the Company by the Trustee on demand and all liability
of the Trustee shall thereupon cease with respect to such monies; and the holder of any of the
Securities shall thereafter look only to the Company for any payment that such Holder may be
entitled to collect unless an applicable abandoned property law designates another Person.

Section 12.05. Reinstatement. If the Trustee or the Paying Agent is unable to apply any
money in accordance with Section 12.02 by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such application, the
Company’s obligations under this Indenture and the Securities shall be revived and reinstated as
though no deposit had occurred pursuant to Section 12.01 until such time as the Trustee or the
Paying Agent is permitted to apply all such money in accordance with Section 12.02; provided,
however, that if the Company makes any payment of Interest on or principal of any Security
following the reinstatement of its obligations, the Company shall be subrogated to the rights of
the Holders of such Securities to receive such payment from the money held by the Trustee or Paying
Agent.

 

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ARTICLE 13

Supplemental Indentures

Section 13.01. Without Consent of Holders. Without the consent of any Holders, the Company,
when authorized by a Board Resolution, and the Trustee, at any time and from time to time, may
enter into one or more indentures supplemental hereto, in form satisfactory to the Trustee, for any
of the following purposes:

(i) to cure any ambiguity or correct any omission, defect or inconsistency contained
herein, so long as such action does not adversely affect to a material extent the interest
of the Holders; provided that any such action made solely to conform the provisions of
this Indenture to the description thereof contained in the final offering memorandum dated
June 3, 2010, shall be deemed not to adversely affect the interests of the Holders;

(ii) to provide for the assumption by a successor Corporation of the obligations of
the Company contained herein and in the Securities;

(iii) to provide for uncertificated Securities in addition to or in place of Physical
Securities; provided that the Company receives an opinion of nationally recognized tax
counsel that such uncertificated Securities are issued in registered form for purposes of
Section 163(f) of the Code, or in a manner such that the uncertificated notes are
described in Sections 163(f)(2)(A)(iv) and 163(f)(2)(B) of the Code, if then applicable;

(iv) to add guarantees with respect to the Securities;

(v) to secure the Securities;

(vi) to add to the covenants of the Company for the benefit of the Holders, or to
surrender any right or power herein conferred upon the Company;

(vii) to make any change that does not adversely affect the rights of any Holder; or

(viii) to modify, eliminate or add to the provisions of this Indenture to such extent
as shall be necessary to effect the qualifications of this Indenture under the Trust
Indenture Act, or under any similar federal statute hereafter enacted.

 

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Section 13.02. Supplemental Indentures With Consent of Holders. With the consent of the
Holders of not less than a majority in Principal Amount of the Outstanding Securities (including
consents obtained in connection with a purchase of, or tender offer or exchange offer for
Securities), by Act of said Holders delivered to the Company and the Trustee, the Company, when
authorized by a Board Resolution, and the Trustee may enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture or of modifying in any manner the rights of the
Holders under this Indenture; provided, however, that no such supplemental indenture shall, without
the consent of the Holder of each Outstanding Security affected thereby,

(i) reduce the rate or extend the time of payment of any Interest on any Security;

(ii) reduce the Principal Amount of, or extend the Stated Maturity of, any Security;

(iii) make any change that impairs or adversely affects right of a Holder to convert
any Security or the Conversion Rate of any Securities;

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

(v) make any Security payable in money other than that stated in the Security;

(vi) change the ranking of the Securities;

(vii) impair the right of any Holder to receive payment of principal and Interest on
such Holder’s Securities on or after the due dates therefor or institute suit for the
enforcement of any payment on or with respect to such Holder’s Securities;

(viii) modify any of the provisions of this Section 13.02, Section 13.03 or Section
8.13, except to increase any such percentage or to provide that certain other provisions
of this Indenture cannot be modified or waived without the consent of the Holder of each
Outstanding Security affected thereby.

It shall not be necessary for any Act of Holders under this Section 13.02 to approve the
particular form of any proposed supplemental indenture, but it shall be sufficient if such Act
shall approve the substance thereof.

 

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Section 13.03. Execution of Supplemental Indentures. In executing, or accepting the
additional trusts created by, any supplemental indenture permitted by this Article 13 or the
modifications thereby of the trusts created by this Indenture, the Trustee shall be entitled to
receive, and (subject to Section 10.01) shall be fully protected in relying upon, in addition to
the documents required by Section 14.04, an Opinion of Counsel stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture. Subject to the preceding
sentence, the Trustee shall sign such supplemental indenture if the same does not adversely affect
the Trustee’s own rights, duties or immunities under this Indenture or otherwise. The Trustee may,
but shall not be obligated to, enter into any such supplemental indenture that adversely affects
the Trustee’s own rights, duties or immunities under this Indenture or otherwise.

Section 13.04. Effect of Supplemental Indentures. Upon the execution of any supplemental
indenture under this Article 13, this Indenture shall be modified in accordance therewith, and
such supplemental indenture shall form a part of this Indenture for all purposes; and every Holder
of Securities theretofore or thereafter authenticated and delivered hereunder shall be bound
thereby.

Section 13.05. Conformity with Trust Indenture Act. Every supplemental indenture executed
pursuant to this Article 13 shall conform to the requirements of the Trust Indenture Act.

Section 13.06. Reference in Securities to Supplemental Indentures. Securities authenticated
and delivered after the execution of any supplemental indenture pursuant to this Article 13 shall
bear a notation in form approved by the Trustee as to any matter provided for in such supplemental
indenture. If the Company shall so determine, new Securities so modified as to conform, in the
opinion of the Trustee and the Company, to any such supplemental indenture may be prepared and
executed by the Company and authenticated and delivered by the Trustee in exchange for Outstanding
Securities.

Section 13.07. Notice to Holders of Supplemental Indentures. The Company shall cause notice
of the execution of any supplemental indenture to be mailed to each Holder, at his address
appearing on the Security Register provided for in this Indenture, within 20 days after execution
thereof. Failure to deliver such notice shall not affect the legality or validity of such
supplemental indenture.

ARTICLE 14

Miscellaneous

Section 14.01. Trust Indenture Act Controls. If any provision of this Indenture limits,
qualifies or conflicts with another provision which is required to be included in this Indenture by
the Trust Indenture Act, the provision required by the Trust Indenture Act shall control.

 

92

 

Section 14.02. Notices. Any notice or communication shall be in writing (including telecopy
promptly confirmed in writing) and delivered in person or mailed by first-class mail addressed as
follows:

if to the Company:

Xilinx, Inc.

2100 Logic Drive

San Jose, CA 95124

Attn: Treasurer

to the Trustee:

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

700 South Flower Street, Suite 500

Los Angeles, CA 90017

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

Any notice or communication mailed to a registered Holder shall be mailed to the Holder at the
Holder’s address as it appears on the registration books of the Security Registrar and shall be
sufficiently given if so mailed within the time prescribed.

Failure to mail a notice or communication to a Holder or any defect in it shall not affect its
sufficiency with respect to other Holders. If a notice or communication is mailed in the manner
provided above, it is duly given, whether or not the addressee receives it, except that notices to
the Trustee shall be effective only upon receipt.

The Trustee agrees to accept and act upon instructions or directions pursuant to this
Indenture sent by unsecured e-mail, facsimile transmission or other similar unsecured electronic
methods (including pdf files). If the party elects to give the Trustee e-mail or facsimile
instructions (or instructions by a similar electronic method) and the Trustee in its discretion
elects to act upon such instructions, the Trustee’s understanding of such instructions shall be
deemed controlling. The party providing electronic instructions agrees to assume the risk arising
from the use of such electronic methods to submit instructions to the Trustee.

Section 14.03. Communication by Holders with other Holders. Holders may communicate pursuant
to Trust Indenture Act § 312(b) with other Holders with respect to their rights under this
Indenture or the Securities. The Company, the Trustee, the Registrar and anyone else shall have
the protection of Trust Indenture Act § 312(c).

 

93

 

Section 14.04. Certificate and Opinion as to Conditions Precedent. Upon any request or
application by the Company to the Trustee to take or refrain from taking any action under this
Indenture, the Company shall furnish to the Trustee:

(a) an Officers’ Certificate in form and substance reasonably satisfactory to the Trustee
stating that, in the opinion of the signers, all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with; and

(b) an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee stating
that, in the opinion of such counsel, all such conditions precedent have been complied with.

Section 14.05. Statements Required in Certificate or Opinion. Each certificate or opinion
with respect to compliance with a covenant or condition provided for in this Indenture shall
include:

(a) a statement that the individual making such certificate or opinion has read such covenant
or condition and the definitions herein relating thereto;

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

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

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

In giving such Opinion of Counsel, counsel may rely as to factual matters on an Officers’
Certificate or on certificates of public officials.

Section 14.06. Rules by Trustee, Paying Agent and Registrar. The Trustee may make reasonable
rules for action by, or a meeting of, Holders. The Registrar and the Paying Agent may make
reasonable rules for their functions.

Section 14.07. Legal Holidays. A “Legal Holiday” is a Saturday, a Sunday or other day on
which commercial banking institutions are authorized or required to be closed in The City of New
York. If an Interest Payment Date is any Fundamental Change Repurchase Date falls on a Legal
Holiday, payment shall be made on the next succeeding Business Day that is not a Legal Holiday, and
no Interest shall accrue for the intervening period. If a Record Date is a Legal Holiday, the
Record Date shall not be affected. In any case where the Stated Maturity of any Security is a
Legal Holiday, then (notwithstanding any other provision of this Indenture or of the Securities)
payment of principal need not be made on such date, but may be made on the next succeeding Business
Day that is not a Legal Holiday, with the same force and effect as if made on at the Stated
Maturity.

 

94

 

Section 14.08. Conflict with Trust Indenture Act. If any provision hereof limits, qualifies
or conflicts with a provision of the Trust Indenture Act that is required hereunder to be a part of
and govern this Indenture, the latter provision shall control. If any provision of this Indenture
modifies or excludes any provision of the Trust Indenture Act that may be so modified or excluded,
the latter provision shall be deemed to apply to this Indenture as so modified or to be excluded,
as the case may be.

Section 14.09. Successors. All agreements of the Company in this Indenture and the
Securities shall bind their respective successors. All agreements of the Trustee in this Indenture
shall bind its successors.

Section 14.10. Table of Contents; Headings. The table of contents, cross-reference sheet and
headings of the Articles and Sections of this Indenture have been inserted for convenience of
reference only, are not intended to be considered a part hereof and shall not modify or restrict
any of the terms or provisions hereof.

Section 14.11. Severability Clause. In case any provision in this Indenture shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby and such provision shall be
ineffective only to the extent of such invalidity, illegality or unenforceability.

Section 14.12. U.S.A. Patriot Act. The parties hereto acknowledge that in accordance with
Section 326 of the U.S.A. Patriot Act, the Trustee, like all financial institutions and in order to
help fight the funding of terrorism and money laundering, is required to obtain, verify, and record
information that identifies each Person or legal entity that establishes a relationship or opens an
account with the Trustee. The parties to this Indenture agree that they will provide the Trustee
with such information as it may request in order for the Trustee to satisfy the requirements of the
U.S.A. Patriot Act.

Section 14.13. Execution in Counterparts. This Indenture may be executed in two or more
counterparts, which when so executed shall constitute one and the same agreement. The exchange of
copies of this Indenture and of signature pages by facsimile or Portable Document Format (PDF)
transmission shall constitute effective execution and delivery of this Indenture as to the parties
hereto and may be used in lieu of the original Indenture for all purposes. Signatures of the
parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for
all purposes.

 

95

 

Section 14.14. Calculations. Except as otherwise provided herein, the Company will be
responsible for making all calculations called for under this Indenture and the Securities. Such
calculations include but are not limited to, determinations of the Last Reported Sale Price of the
Common Stock, Interest payable on the Securities and the Conversion Rate. The Company will make
all such calculations in good faith and, absent manifest error, its calculations will be
final and binding on Holders. The Company will provide a schedule of its calculations to each
of the Trustee and the Conversion Agent, and each of the Trustee and Conversion Agent is entitled
to rely conclusively upon the accuracy of the Company’s calculations without independent
verification. The Trustee will deliver a copy of such schedule to any Holder upon the request of
such Holder. For the avoidance of doubt, the Trustee and the Conversion Agent shall rely
conclusively on the calculations and information provided to them by the Company as to Daily VWAP,
Trading Price and Last Reported Sale Price. Nor shall the Trustee or the Conversion Agent be
charged with knowledge of or have any duties to monitor the stock price or any Measurement Period.

Section 14.15. Governing Law. This Indenture and the Securities, and any claims controversy
or dispute arising under or related to this Indenture or the Securities, shall be governed by and
construed in accordance with the laws of the State of New York, without regard to the conflicts of
law principles thereof.

Section 14.16. 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 AGREEMENT, THE NOTES OR THE TRANSACTION
CONTEMPLATED THEREBY.

Section 14.17. Force Majeure. In no event shall the Trustee be responsible or liable for any
failure or delay in the performance of its obligations hereunder arising out of or caused by,
directly or indirectly, forces beyond its control, including, without limitation, strikes, work
stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural
catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications
or computer (software or 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.

Section 14.18. Benefits of Indenture. Nothing in this Indenture or in the Securities,
express or implied, shall give to any Person, other than the parties hereto and their respective
successors hereunder and the Holders of Securities, any benefit or any legal or equitable right,
remedy or claim under this Indenture.

Section 14.19. No Recourse Against Others. None of the Company’s, or of any successor
entity’s, direct or indirect stockholders, employees, officers or directors, as such, past, present
or future, shall have any personal liability in respect of the obligations of the Company under
this Indenture or the Securities solely by reason of his or its status as such stockholder,
employee, officer or director.

 

96

 

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

	 	 	 	 	 
	 	
XILINX, INC.

 	 
	 	By:  	/s/ Jon A. Olson
 	 
	 	 	Name:  	Jon A. Olson 	 
	 	 	Title:  	Senior Vice President, Finance and 

Chief Financial Officer 	 

[Trustee Signature Follows]

 

97

 

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

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

 

98

 

SCHEDULE A

Additional Shares to Be Delivered in Connection with Conversion Upon a Make-Whole Fundamental Change

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stock Price	 
	Effective Date	 	$25.24	 	 	$30.00	 	 	$35.00	 	 	$40.00	 	 	$45.00	 	 	$50.00	 	 	$55.00	 	 	$60.00	 	 	$65.00	 	 	$70.00	 	 	$75.00	 
	June 9, 2010
	 	 	6.6033	 	 	 	4.6807	 	 	 	2.8909	 	 	 	1.8046	 	 	 	1.1259	 	 	 	0.6935	 	 	 	0.4152	 	 	 	0.2359	 	 	 	0.1216	 	 	 	0.0518	 	 	 	0.0141	 
	June 15, 2011
	 	 	6.6033	 	 	 	4.9306	 	 	 	3.0162	 	 	 	1.8645	 	 	 	1.1515	 	 	 	0.7021	 	 	 	0.4157	 	 	 	0.2333	 	 	 	0.1184	 	 	 	0.0491	 	 	 	0.0125	 
	June 15, 2012
	 	 	6.6033	 	 	 	5.1042	 	 	 	3.0712	 	 	 	1.8647	 	 	 	1.1301	 	 	 	0.6752	 	 	 	0.3908	 	 	 	0.2131	 	 	 	0.1038	 	 	 	0.0399	 	 	 	0.0081	 
	June 15, 2013
	 	 	6.6033	 	 	 	5.1449	 	 	 	3.0071	 	 	 	1.7679	 	 	 	1.0339	 	 	 	0.5933	 	 	 	0.3271	 	 	 	0.1669	 	 	 	0.0728	 	 	 	0.0221	 	 	 	0.0016	 
	June 15, 2014
	 	 	6.6033	 	 	 	4.9678	 	 	 	2.7595	 	 	 	1.5293	 	 	 	0.8358	 	 	 	0.4425	 	 	 	0.2195	 	 	 	0.0951	 	 	 	0.0300	 	 	 	0.0030	 	 	 	0.0000	 
	June 15, 2015
	 	 	6.6033	 	 	 	4.4546	 	 	 	2.2387	 	 	 	1.0990	 	 	 	0.5189	 	 	 	0.2272	 	 	 	0.0838	 	 	 	0.0193	 	 	 	0.0001	 	 	 	0.0000	 	 	 	0.0000	 
	June 15, 2016
	 	 	6.6033	 	 	 	3.3899	 	 	 	1.2970	 	 	 	0.4404	 	 	 	0.1229	 	 	 	0.0191	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 
	June 15, 2017
	 	 	6.6033	 	 	 	0.3169	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000exv10w1

Exhibit 10.1

Execution Copy

PHH CORPORATION

$350,000,000

9.25% Senior Notes due 2016

Purchase Agreement

August 6, 2010

Banc of America Securities LLC

Citigroup Global Markets Inc.

J.P. Morgan Securities Inc.

RBS Securities Inc.

As Representatives of the Initial Purchasers

c/o

Banc of America Securities LLC

One Bryant Park

New York, New York 10036

Citigroup Global Markets Inc.

388 Greenwich Street

New York, New York 10013

J.P. Morgan Securities Inc.

383 Madison Avenue, 3rd Floor

New York, New York 10179

and

RBS Securities Inc.

600 Washington Blvd.

Stamford, Connecticut 06901

Ladies and Gentlemen:

          PHH Corporation, a corporation organized under the laws of Maryland (the “Company”), proposes
to issue and sell to the several parties named in Schedule I hereto (the “Initial Purchasers”), for
whom you (the “Representatives”) are acting as representatives, U.S. $350,000,000 principal amount
of its 9.25% Senior Notes due 2016 (the “Securities”). The Securities are to be issued under an
indenture (the “Indenture”), to be dated as of the Closing

	[***]  	 	INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.

 

 

Date, between the Company and The Bank
of New York Mellon Trust Company, N.A., as
trustee (the “Trustee”). The Securities will have the benefit of a registration rights
agreement (the “Registration Rights Agreement”), to be dated as of the Closing Date, between the
Company and the Initial Purchasers, pursuant to which the Company will agree to offer to exchange
the Securities for securities registered under the Act subject to the terms and conditions therein
specified. To the extent there are no additional parties listed on Schedule I other than you, the
term Representatives as used herein shall mean you as the Initial Purchasers, and the terms
Representatives and Initial Purchasers shall mean either the singular or plural as the context
requires. The use of the neuter in this Agreement shall include the feminine and masculine
wherever appropriate. Certain terms used herein are defined in Section 22 hereof.

          The sale of the Securities to the Initial Purchasers will be made without registration of the
Securities under the Act in reliance upon exemptions from the registration requirements of the Act.

          In connection with the sale of the Securities, the Company has prepared a preliminary offering
memorandum, dated August 3, 2010 (as amended or supplemented through the date hereof, including any
and all exhibits thereto and any information incorporated by reference therein, the “Preliminary
Memorandum”), and a final offering memorandum, to be dated August 6, 2010 (as amended or
supplemented through the Execution Time, including any and all exhibits thereto, and any
information incorporated by reference therein, the “Final Memorandum”). Each of the Preliminary
Memorandum and the Final Memorandum sets forth certain information concerning the Company and the
Securities. The Company hereby confirms that it has authorized the use of the Disclosure Package,
the Preliminary Memorandum and the Final Memorandum, and any amendment or supplement thereto, in
connection with the offer and sale of the Securities by the Initial Purchasers. Unless stated to
the contrary, any references herein to the terms “amend”, “amendment” or “supplement” with respect
to the Final Memorandum shall be deemed to refer to and include any information filed under the
Exchange Act subsequent to the Execution Time that is incorporated by reference therein.

          1. Representations and Warranties. The Company represents and warrants to, and agrees
with, each Initial Purchaser as set forth below in this Section 1.

          (a) The Preliminary Memorandum, at the date thereof, did not contain any untrue statement of a
material fact or omit to state any material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading. At the Execution Time and
on the Closing Date, the Final Memorandum did not and will not (and any amendment or supplement
thereto, at the date thereof and at the Closing Date, will not) contain any untrue statement of a
material fact or omit to state any material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading; provided,
however, that the Company makes no representation or warranty as to the information
contained in or omitted from the Preliminary Memorandum or the Final Memorandum, or any amendment
or supplement thereto, in reliance upon and in conformity with information furnished in writing to
the Company by or on behalf of the Initial Purchasers through the Representatives specifically for
inclusion therein, it being understood and agreed that the only such information furnished by or on
behalf of any Initial Purchaser consists of the information described as such in Section 8(b)
hereof.

 

 

          (b) (i) The Disclosure Package, and (ii) each electronic road show when taken together as a
whole with the Disclosure Package, as of the Execution Time, do not contain any untrue statement of
a material fact or omit to state any material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were made, not
misleading. The preceding sentence does not apply to statements in or omissions from the
Disclosure Package based upon and in conformity with written information furnished to the Company
by any Initial Purchaser through the Representatives specifically for use therein, it being
understood and agreed that the only such information furnished by or on behalf of any Initial
Purchaser consists of the information described as such in Section 8(b) hereof.

          (c) None of the Company, its Affiliates, and any person acting on its or their behalf has,
directly or indirectly, made offers or sales of any security, or solicited offers to buy any
security under circumstances that would require the registration of the Securities under the Act.

          (d) None of the Company, its Affiliates, or any person acting on its or their behalf has: (i)
engaged in any form of general solicitation or general advertising (within the meaning of
Regulation D) in connection with any offer or sale of the Securities or (ii) engaged in any
directed selling efforts (within the meaning of Regulation S) with respect to the Securities; and
each of the Company, its Affiliates and each person acting on its or their behalf has complied with
the offering restrictions requirement of Regulation S.

          (e) The Securities satisfy the eligibility requirements of Rule 144A(d)(3) under the Act.

          (f) Assuming the accuracy of the representations and warranties of the Initial Purchasers
contained in Section 4 and their compliance with their agreements set forth herein, no registration
under the Act of the Securities or qualification of the Indenture under the Trust Indenture Act
(other than in both cases with respect to the exchange securities to be offered pursuant to the
Registration Rights Agreement) is required for the offer and sale of the Securities to or by the
Initial Purchasers in the manner contemplated herein, in the Disclosure Package and in the Final
Memorandum.

          (g) The Company is not, and after giving effect to the offering and sale of the Securities and
the application of the proceeds thereof as described in the Disclosure Package and the Final
Memorandum will not be, an “investment company” as defined in the Investment Company Act.

          (h) The Company is subject to and in compliance in all material respects with the reporting
requirements of Section 13 or Section 15(d) of the Exchange Act.

          (i) The Company has not paid or agreed to pay to any person any compensation for soliciting
another to purchase any of the Securities (except as contemplated in this Agreement).

          (j) The Company has not taken, directly or indirectly, any action designed to or that has
constituted or that might reasonably be expected to cause or result, under the Exchange Act or
otherwise, in stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of the Securities.

 

 

          (k) Each of the Company and its significant subsidiaries (as listed in Annex A hereto) has
been duly incorporated and is validly existing as a corporation or other entity in good standing
under the laws of the jurisdiction in which it is incorporated or formed with full corporate or
other power and authority to own or lease, as the case may be, and to operate its
properties and conduct its business as and if described in the Disclosure Package and the
Final Memorandum, and is duly qualified to do business as a foreign corporation and is in good
standing under the laws of each jurisdiction that requires such qualification, except for such
jurisdictions where the failure to so qualify or to be in good standing would not result in a
Material Adverse Effect (as defined below in Section 1(q)).

          (l) All the outstanding shares of capital stock or other equity or ownership interests of each
significant subsidiary have been duly authorized and validly issued and are fully paid and
nonassessable, and, except as otherwise set forth in the Disclosure Package and the Final
Memorandum (exclusive of any amendment or supplement thereto) and except for the equity or
ownership interests of certain of the Company’s significant subsidiaries which are structured
bankruptcy remote subsidiaries with securitization indebtedness, all outstanding shares of capital
stock or other equity or ownership interests of the significant subsidiaries that are owned by the
Company either directly or through a subsidiary controlled by the Company are free and clear of any
security interest, claim, lien or encumbrance.

          (m) This Agreement has been duly authorized, executed and delivered by the Company; the
Indenture has been duly authorized and, assuming due authorization, execution and delivery thereof
by the Trustee, when executed and delivered by the Company, will constitute a legal, valid, binding
instrument enforceable against the Company in accordance with its terms (subject to applicable
bankruptcy, reorganization, insolvency, moratorium or other laws affecting creditors’ rights
generally from time to time in effect and to general principles of equity); the Securities have
been duly authorized, and, when executed and authenticated in accordance with the provisions of the
Indenture and delivered to and paid for by the Initial Purchasers as provided herein, will have
been duly executed and delivered by the Company and will constitute the legal, valid and binding
obligations of the Company entitled to the benefits of the Indenture (subject, as to enforcement,
to applicable bankruptcy, reorganization, insolvency, moratorium or other laws affecting creditors’
rights generally from time to time in effect and to general principles of equity); and the
Registration Rights Agreement has been duly authorized and, assuming due authorization, execution
and delivery thereof by the Initial Purchasers, when executed and delivered by the Company, will
constitute a valid and binding agreement of the Company, enforceable in accordance with its terms
(subject, as to enforcement, to applicable bankruptcy, reorganization, insolvency, moratorium or
other laws affecting creditors’ rights generally from time to time in effect and to general
principles of equity).

          (n) No consent, approval, authorization, filing with or order of any court or governmental
agency or body is required in connection with the transactions contemplated herein, in the
Indenture or in the Registration Rights Agreement, except (i) such as may be required under the
Act, the Trust Indenture Act or the rules and regulations promulgated thereunder and (ii) such as
have been obtained or made by the Company and are in full force and effect under the Act,
applicable state securities or blue sky laws of any jurisdiction in which the Securities are
offered and sold.

          (o) None of the execution and delivery of the Indenture, this Agreement or the Registration
Rights Agreement, the issuance and sale of the Securities, or the consummation of

 

 

any other of the
transactions herein or therein contemplated, or the fulfillment of the terms hereof or thereof will
conflict with, or result in a breach or violation or imposition of any lien, charge or encumbrance
upon any property or assets of the Company or any of its subsidiaries pursuant to, (i) the charter
or by-laws or comparable constituting documents of the Company or any of its subsidiaries; (ii) the
terms of any material indenture, contract, lease, mortgage, deed of trust, note
agreement, loan agreement or other material agreement, obligation, condition, covenant or
instrument to which the Company or any of its subsidiaries is a party or bound or to which its or
their property is subject; or (iii) any statute, law, rule, regulation, judgment, order or decree
of any court, regulatory body, administrative agency, governmental body, arbitrator or other
authority having jurisdiction over the Company or any of its subsidiaries or any of its or their
properties, except in the case of this clause (iii) for any such default or violation that would
not, individually or in the aggregate, have a Material Adverse Effect or a material adverse effect
upon the consummation of the transactions contemplated hereby.

          (p) The consolidated historical financial statements and schedules of the Company and its
consolidated subsidiaries included or incorporated by reference in the Disclosure Package and the
Final Memorandum present fairly in all material respects the financial condition, results of
operations and cash flows of the Company and its consolidated subsidiaries as of the dates and for
the periods indicated, comply as to form with the applicable accounting requirements of Regulation
S-X and have been prepared in conformity with generally accepted accounting principles in the
United States (“U.S. GAAP”) applied on a consistent basis throughout the periods involved (except
as otherwise noted therein); and the selected financial data set forth under the caption “Selected
Financial Data” in the Preliminary Memorandum and the Final Memorandum fairly present, on the basis
stated in the Preliminary Memorandum and the Final Memorandum, the information included or
incorporated by reference therein.

          (q) No action, suit or proceeding by or before any court or governmental agency, authority or
body or any arbitrator involving the Company or any of its subsidiaries or its or their property is
pending or, to the knowledge of the Company, threatened that (i) could reasonably be expected to
have a material adverse effect on the performance of this Agreement, the Indenture or the
Registration Rights Agreement, or the consummation of any of the transactions contemplated hereby
or thereby or (ii) could reasonably be expected to have a material adverse effect on the condition
(financial or otherwise), prospects, earnings, business or properties of the Company and its
subsidiaries, taken as a whole, whether or not arising from transactions in the ordinary course of
business (a “Material Adverse Effect”), except as set forth in or contemplated in the Disclosure
Package and the Final Memorandum (exclusive of any amendment or supplement thereto).

          (r) Each of the Company and its significant subsidiaries owns or leases all such properties as
are necessary to the conduct of its operations as presently conducted, except where such failure
would not have a Material Adverse Effect.

          (s) Neither the Company nor any of its significant subsidiaries is in violation or default of
(i) any provision of its charter or bylaws or comparable constituting documents; (ii) the terms of
any indenture, contract, lease, mortgage, deed of trust, note agreement, loan agreement or other
agreement, obligation, condition, covenant or instrument to which the Company or any of its
significant subsidiaries is a party or bound or to which its or their property is subject; or (iii)
any statute, law, rule, regulation, judgment, order or decree applicable to the Company or any of
its significant subsidiaries of any court, regulatory body, administrative

 

 

agency, governmental
body, arbitrator having jurisdiction over the Company or such significant subsidiary or any of its
properties, as applicable, except, with respect to clauses (ii) and (iii), as would not result in a
Material Adverse Effect.

          (t) Deloitte & Touche LLP, which has audited certain financial statements of the Company and
its consolidated subsidiaries and delivered its report with respect to the audited
consolidated financial statements and schedules included or incorporated by reference in the
Disclosure Package and the Final Memorandum, is an independent registered public accounting firm
with respect to the Company within the meaning of the Act.

          (u) There are no stamp or other issuance or transfer taxes or duties or other similar fees or
charges required to be paid in connection with the execution and delivery of this Agreement or the
issuance or sale of the Securities.

          (v) The Company has filed all applicable tax returns that are required to be filed or has
requested extensions thereof (except in any case in which the failure so to file would not,
individually or in the aggregate, have a Material Adverse Effect or except as set forth in or
contemplated in the Disclosure Package and the Final Memorandum (exclusive of any amendment or
supplement thereto)) and has paid all taxes due and any other assessment, fine or penalty levied
against it, to the extent that any of the foregoing is due and payable, except for any such tax or
assessment, fine or penalty that is currently being contested in good faith or as would not,
individually or in the aggregate, have a Material Adverse Effect or except as set forth in or
contemplated in the Disclosure Package and the Final Memorandum (exclusive of any amendment or
supplement thereto).

          (w) No labor problem or dispute with the employees of the Company or any of its subsidiaries
exists or, to the Company’s knowledge, is threatened, except as would not have a Material Adverse
Effect, or except as set forth in or contemplated in the Disclosure Package and the Final
Memorandum (exclusive of any amendment or supplement thereto).

          (x) The Company and each of its subsidiaries are insured against such losses and risks and in
such amounts as are customary in the businesses in which they are engaged; all material policies of
insurance and fidelity or surety bonds insuring the Company or any of its subsidiaries or their
respective businesses, assets, employees, officers and directors are in full force and effect; the
Company and its subsidiaries are in compliance in all material respects with the terms of such
policies and instruments; there are no material claims by the Company or any of its significant
subsidiaries under any such policy or instrument as to which any insurance company is denying
liability or defending under a reservation of rights clause; neither the Company nor any of its
subsidiaries has been refused any insurance coverage sought or applied for; and neither the Company
nor any of its subsidiaries has any reason to believe that it will not be able to renew its
existing insurance coverage as and when such coverage expires or to obtain similar coverage from
similar insurers as may be necessary to continue its business at a cost that would not have a
Material Adverse Effect except as set forth in or contemplated in the Disclosure Package and the
Final Memorandum (exclusive of any amendment or supplement thereto).

          (y) Except for generally applicable restrictions arising under applicable corporate law, no
subsidiary of the Company is currently prohibited, directly or indirectly, from paying any
dividends to the Company, from making any other distribution on such subsidiary’s capital stock,
from repaying to the Company any loans or advances to such subsidiary from the

 

 

Company or from
transferring any of such subsidiary’s property or assets to the Company or any other subsidiary of
the Company, except as described in or contemplated in the Disclosure Package and the Final
Memorandum (exclusive of any amendment or supplement thereto).

          (z) The Company and its subsidiaries possess all licenses, certificates, permits and other
authorizations issued by all applicable authorities necessary to conduct their respective

businesses, except as would not result in a Material Adverse Effect or as set forth in or
contemplated in the Disclosure Package and the Final Memorandum (exclusive of any amendment or
supplement thereto). Neither the Company nor any of its subsidiaries has received any notice of
proceedings relating to the revocation or modification of any such certificate, authorization or
permit which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or
finding, would have a Material Adverse Effect, except as set forth in or contemplated in the
Disclosure Package and the Final Memorandum (exclusive of any amendment or supplement thereto).

          (aa) The Company and each of its subsidiaries maintain a system of internal accounting
controls sufficient to provide reasonable assurance that (i) transactions are executed in
accordance with management’s general or specific authorizations; (ii) transactions are recorded as
necessary to permit preparation of financial statements in conformity with U.S. GAAP and to
maintain asset accountability; (iii) access to assets is permitted only in accordance with
management’s general or specific authorization; and (iv) the recorded accountability for assets is
compared with the existing assets at reasonable intervals and appropriate action is taken with
respect to any differences. The Company and its subsidiaries’ internal controls over financial
reporting were effective as of December 31, 2009, and to the Company’s knowledge, are effective as
of the date hereof and the Company is not aware of any material weakness in their internal control
over financial reporting.

          (bb) The Company and its subsidiaries maintain “disclosure controls and procedures” (as such
term is defined in Rule 13a-15(e) under the Exchange Act); such disclosure controls and procedures
were effective as of March 31, 2010, and, to the Company’s knowledge, are effective as of the date
hereof.

          (cc) The Company and its subsidiaries are (i) in compliance with any and all applicable laws
and regulations relating to the protection of human health and safety, the environment or hazardous
or toxic substances or wastes, pollutants or contaminants (“Environmental Laws”); (ii) have
received and are in compliance with all permits, licenses or other approvals required of them under
applicable Environmental Laws to conduct their respective businesses; and (iii) have not received
notice of any actual or potential liability under any Environmental Law, except where such
non-compliance with Environmental Laws, failure to receive required permits, licenses or other
approvals, or liability would not, individually or in the aggregate, have a Material Adverse
Effect, except as set forth in or contemplated in the Disclosure Package and the Final Memorandum
(exclusive of any amendment or supplement thereto). Except as set forth in the Disclosure Package
and the Final Memorandum (exclusive of any amendment or supplement thereto), neither the Company
nor any of its subsidiaries has been named as a “potentially responsible party” under the
Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended.

          (dd) The subsidiaries listed on Annex A attached hereto are the only “significant
subsidiaries” of the Company (as defined in Rule 1-02 of Regulation S-X).

 

 

          (ee) None of the Company, its subsidiaries and, to the knowledge of the Company, any director,
officer, agent, employee or Affiliate of the Company or any of its subsidiaries is aware of or has
taken any action, directly or indirectly, that would result in a violation by such person of the
Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the
“FCPA”), including, without limitation, making use of the mails or any means or instrumentality of
interstate commerce corruptly in furtherance of an offer,
payment, promise to pay or authorization of the payment of any money, or other property, gift,
promise to give, or authorization of the giving of anything of value to any “foreign official” (as
such term is defined in the FCPA) or any foreign political party or official thereof or any
candidate for foreign political office, in contravention of the FCPA.

          (ff) The operations of the Company and its subsidiaries are and have been conducted at all
times in compliance with applicable financial recordkeeping and reporting requirements and money
laundering statutes and the rules and regulations thereunder and any related or similar rules,
regulations or guidelines, issued, administered or enforced by any governmental agency
(collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or before any
court or governmental agency, authority or body or any arbitrator involving the Company or any of
its subsidiaries with respect to the Money Laundering Laws is pending or, to the knowledge of the
Company, threatened.

          (gg) None of the Company, any of its subsidiaries and, to the knowledge of the Company, any
director, officer, agent, employee or Affiliate of the Company or any of its subsidiaries is
currently subject to any sanctions administered by the Office of Foreign Assets Control of the U.S.
Department of the Treasury (“OFAC”); and the Company will not directly or indirectly use the
proceeds of the offering of the Securities hereunder, or lend, contribute or otherwise make
available such proceeds to any subsidiary, joint venture partner or other person or entity, for the
purpose of financing the activities of any person currently subject to any U.S. sanctions
administered by OFAC.

          (hh) There is and has been no failure on the part of the Company and any of the Company’s
directors or officers, in their capacities as such, to comply with any provision of the
Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith (the
“Sarbanes-Oxley Act”), including Section 402 related to loans and Sections 302 and 906 related to
certifications, except where the failure to be in compliance, would not individually or in the
aggregate, have a Material Adverse Effect.

          (ii) Any certificate signed by any officer of the Company and delivered to the Representatives
or counsel for the Initial Purchasers in connection with the offering of the Securities shall be
deemed a representation and warranty by the Company, as to matters covered thereby, to each Initial
Purchaser.

          2. Purchase and Sale. Subject to the terms and conditions and in reliance upon the
representations and warranties herein set forth, the Company agrees to sell to each Initial
Purchaser, and each Initial Purchaser agrees, severally and not jointly, to purchase from the
Company, at a purchase price of [***] of the principal amount thereof, plus accrued interest, if

 

			
	[***]	 	INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR
WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS
BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.

 

 

any, from August 11, 2010 to the Closing Date, the principal amount of Securities set forth
opposite such Initial Purchaser’s name in Schedule I hereto.

          3. Delivery and Payment. Delivery of and payment for the Securities shall be made at
10:00 A.M., New York City time, on August 11, 2010, or at such time on such later date not more
than three Business Days after the foregoing date as the Representatives shall

designate, which date and time may be postponed by agreement between the Representatives and
the Company or as provided in Section 9 hereof (such date and time of delivery and payment for the
Securities being herein called the “Closing Date”). Delivery of the Securities shall be made to
the Representatives for the respective accounts of the several Initial Purchasers against payment
by the several Initial Purchasers through the Representatives of the purchase price thereof to or
upon the order of the Company by wire transfer payable in same-day funds to the account specified
by the Company. Delivery of the Securities shall be made through the facilities of The Depository
Trust Company unless the Representatives shall otherwise instruct.

          4. Offering by Initial Purchasers. (a) Each Initial Purchaser acknowledges that the
Securities have not been and will not be registered under the Act and may not be offered or sold
within the United States or to, or for the account or benefit of, U.S. persons, except pursuant to
an exemption from, or in a transaction not subject to, the registration requirements of the Act.

          (b) Each Initial Purchaser, severally and not jointly, represents and warrants to and agrees
with the Company that:

     (i) it has not offered or sold, and will not offer or sell, any Securities
within the United States or to, or for the account or benefit of, U.S. persons (x)
as part of their distribution at any time or (y) otherwise until 40 days after the
later of the commencement of the offering and the date of the closing of the
offering except:

	 	(A)	 	to those it reasonably believes
to be “qualified institutional buyers” (as defined in Rule 144A
under the Act) or
	 
	 	(B)	 	in accordance with Rule 903 of
Regulation S,

that, in each case, in purchasing such Securities are deemed to have represented and
agreed as provided in the Final Memorandum under the caption “Notice to Investors;”

     (ii) neither it nor any person acting on its behalf has made or will make
offers or sales of the Securities in the United States by means of any form of
general solicitation or general advertising (within the meaning of Regulation D) in
the United States;

     (iii) none of it, any of its Affiliates and any person acting on its or their
behalf has engaged or will engage in any directed selling efforts (within the
meaning of Regulation S) with respect to the Securities;

     (iv) it is a “qualified institutional buyer” (as defined in Rule 144A under the
Act);

 

 

     (v) neither it nor any person acting on its behalf, without the prior written
consent of the Company, has given or will give to any prospective purchaser of the
Securities any written information concerning the offering of the Securities other
than (w) materials contained in the Disclosure Packages, the Final Memorandum or any
other offering materials consented to in writing by the Company; (x) any written
communication that contains no “issuer information” (as defined in Rule 433(h)(2)
under the Securities Act) that was not included
(including through incorporation by reference) in the Disclosure Package or the
Final Memorandum, (y) any electronic road show or (z) any written communication
relating to or that contains the preliminary or final terms of the Securities;

     (vi) with respect to resales made in reliance on Rule 144A of any of the
Securities, to take reasonable efforts to deliver either with the confirmation of
such resale or otherwise prior to settlement of such resale a notification to the
effect that the resale of such Securities has been made in reliance upon the
exemption from the registration requirements of the Securities Act provided by Rule
144A;

     (vii) it has complied and will comply with the offering restrictions
requirement of Regulation S; and

     (viii) at or prior to the confirmation of sale of Securities (other than a sale
of Securities pursuant to Section 4(b)(i)(A) of this Agreement), it shall have sent
to each distributor, dealer or person receiving a selling concession, fee or other
remuneration that purchases Securities from it during the distribution compliance
period (within the meaning of Regulation S) a confirmation or notice to
substantially the following effect:

“The Securities covered hereby have not been registered under the U.S. Securities
Act of 1933 (the “Act”) and may not be offered or sold within the United States or
to, or for the account or benefit of, U.S. persons (i) as part of their distribution
at any time or (ii) otherwise until 40 days after the later of the commencement of
the offering and the date of closing of the offering, except in either case in
accordance with Regulation S or Rule 144A under the Act. Terms used in this
paragraph have the meanings given to them by Regulation S.”

          5. Agreements. The Company agrees with each Initial Purchaser that:

          (a) The Company will furnish to each Initial Purchaser and to counsel for the Initial
Purchasers, without charge, during the period referred to in Section 5(c) below, as many copies of
the materials contained in the Disclosure Package and the Final Memorandum and any amendments and
supplements thereto as they may reasonably request.

          (b) The Company will not amend or supplement the Disclosure Package or the Final Memorandum,
other than by filing documents under the Exchange Act that are incorporated by reference therein,
without the prior written consent of the Representatives, which shall not be unreasonably withheld,
delayed or conditioned; provided, however, that prior to the completion of the distribution of the
Securities by the Initial Purchasers (as reasonably determined by the Initial Purchasers), the
Company will not file any document under the

 

 

Exchange Act that is incorporated by reference in the
Disclosure Package or the Final Memorandum unless, prior to such proposed filing, the Company has
furnished the Representatives with a copy of such document for their review and the Representatives
have not reasonably objected to the filing of such document. The Company will promptly advise the
Representatives when any document filed under the Exchange Act that is incorporated by reference in
the Disclosure Package or the Final Memorandum shall have been filed with the Commission.

          (c) If at any time prior to the completion of the sale of the Securities by the Initial
Purchasers (as determined by the Representatives), any event occurs as a result of which the
Disclosure Package or the Final Memorandum, as then amended or supplemented, would include any
untrue statement of a material fact or omit to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were made or the
circumstances then prevailing, not misleading, or if it should be necessary to amend or supplement
the Disclosure Package or the Final Memorandum to comply with applicable law, the Company will
promptly (i) notify the Representatives of any such event; (ii) subject to the requirements of
Section 5(b), prepare an amendment or supplement that will correct such statement or omission or
effect such compliance; and (iii) supply any supplemented or amended Disclosure Package or Final
Memorandum to the several Initial Purchasers and counsel for the Initial Purchasers without charge
in such quantities as they may reasonably request.

          (d) Without the prior written consent of the Representatives, the Company has not given and,
during the period referred to in Section 5(c) above, will not give to any prospective purchaser of
the Securities any written information concerning the offering of the Securities other than
materials contained in the Disclosure Package, the Final Memorandum or any other offering materials
prepared by or with the prior written consent of the Representatives.

          (e) The Company will arrange, if necessary, for the qualification of the Securities for sale
by the Initial Purchasers under the laws of such jurisdictions as the Representatives may designate
(including certain provinces of Canada) and will maintain such qualifications in effect so long as
required for the sale of the Securities; provided that in no event shall the Company be
obligated to qualify to do business in any jurisdiction where it is not now so qualified or to take
any action that would subject it to service of process in suits, other than those arising out of
the offering or sale of the Securities, in any jurisdiction where it is not now so subject. The
Company will promptly advise the Representatives of the receipt by the Company of any notification
with respect to the suspension of the qualification of the Securities for sale in any jurisdiction
or the initiation or threatening of any proceeding for such purpose.

          (f) The Company will not, and will not permit any of its Affiliates to, resell any Securities
that have been acquired by any of them.

          (g) None of the Company, its Affiliates, or any person acting on its or their behalf will,
directly or indirectly, make offers or sales of any security, or solicit offers to buy any
security, under circumstances that would require the registration of the Securities under the Act.

          (h) Any information provided by the Company, its Affiliates, or any person acting on its or
their behalf to publishers of publicly available databases about the terms of the Securities shall
include a statement that the Securities have not been registered under the Act and are subject to
restrictions under Rule 144A under the Act and Regulation S.

 

 

          (i) None of the Company, its Affiliates, or any person acting on its or their behalf will
engage in any form of general solicitation or general advertising (within the meaning of Regulation
D) in connection with any offer or sale of the Securities in the United States.

          (j) For so long as any of the Securities are “restricted securities” within the meaning of
Rule 144(a)(3) under the Act, the Company will, during any period in which it is not subject to and
in compliance with Section 13 or 15(d) of the Exchange Act, provide to each holder of such
restricted securities and to each prospective purchaser (as designated by such
holder) of such restricted securities, upon the request of such holder or prospective
purchaser, any information required to be provided by Rule 144A(d)(4) under the Act. This covenant
is intended to be for the benefit of the holders, and the prospective purchasers designated by such
holders, from time to time of such restricted securities.

          (k) None of the Company, its Affiliates, or any person acting on its or their behalf will
engage in any directed selling efforts with respect to the Securities. Terms used in this
paragraph have the meanings given to them by Regulation S.

          (l) The Company will cooperate with the Representatives and use its reasonable best efforts to
permit the Securities to be eligible for clearance and settlement through The Depository Trust
Company.

          (m) Each of the Securities will bear, to the extent applicable, the legend contained in
“Notice to Investors” in the Preliminary Memorandum and the Final Offering Memorandum for the time
period and upon the other terms stated therein.

          (n) During the period of 60 days following the date hereof, the Company will not, without the
prior written consent of Banc of America Securities LLC (which consent may be withheld at the sole
discretion of Banc of America Securities LLC), directly or indirectly, sell, offer, contract or
grant any option to sell, pledge, transfer or establish an open “put equivalent position” within
the meaning of Rule 16a-1 under the Exchange Act, or otherwise dispose of or transfer, or announce
the offering of, or file any registration statement under the Securities Act in respect of, any
debt securities of the Company or securities exchangeable for or convertible into debt securities
of the Company (other than as contemplated by this Agreement and to register the exchange
securities to be issued pursuant to the Registration Rights Agreement).

          (o) The Company will not take, directly or indirectly, any action designed to or that has
constituted, or that might reasonably be expected to, cause or result, under the Exchange Act or
otherwise, in stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of the Securities.

          (p) The Company will, for a period of twelve months following the Execution Time, furnish to
the Representatives all reports or other communications (financial or other) generally made
available to stockholders, and deliver such reports or communications to the Representatives as
soon as they are available, unless such documents are furnished to or filed with the Commission or
any securities exchange on which any class of securities of the Company is listed and generally
made available to the public.

          (q) Prior to the completion of the distribution of the Securities by the Initial Purchasers,
the Company will comply with all applicable securities and other laws, rules and regulations,
including, without limitation, the Sarbanes-Oxley Act, and use its best efforts to

 

 

cause the
Company’s directors and officers, in their capacities as such, to comply with such laws, rules and
regulations, including, without limitation, the provisions of the Sarbanes-Oxley Act.

          (r) The Company will prepare a final term sheet, containing solely a description of the
Securities and the offering thereof, in the form approved by you and attached as Schedule II
hereto.

          (s) Prior to the completion of the distribution of the Securities by the Initial Purchasers,
the Company agrees to pay the reasonable costs and expenses relating to the
following matters: (i) the preparation of the Indenture and the Registration Rights Agreement,
which will not include the expenses of Davis Polk & Wardwell LLP, the issuance of the Securities
and the fees of the Trustee; (ii) the preparation, printing or reproduction of the materials
contained in the Disclosure Package and the Final Memorandum and each amendment or supplement to
either of them; (iii) the printing (or reproduction) and delivery (including postage, air freight
charges and charges for counting and packaging) of such copies of the materials contained in the
Disclosure Package and the Final Memorandum, and all amendments or supplements to either of them,
as may, in each case, be reasonably requested for use in connection with the offering and sale of
the Securities; (iv) the preparation, printing, authentication, issuance and delivery of the
Securities; (v) any stamp or transfer taxes in connection with the original issuance and sale of
the Securities; (vi) the printing (or reproduction) and delivery of this Agreement, any blue sky
memorandum and all other agreements or documents printed (or reproduced) and delivered in
connection with the offering of the Securities; (vii) any registration or qualification of the
Securities for offer and sale under the securities or blue sky laws of the several states, the
provinces of Canada and any other jurisdictions specified pursuant to Section 5(e) (including
filing fees and the reasonable fees and expenses of counsel for the Initial Purchasers relating to
such registration and qualification); (viii) the transportation and other expenses incurred by or
on behalf of Company representatives in connection with presentations to prospective purchasers of
the Securities; (ix) the fees and expenses of the Company’s accountants and the fees and expenses
of counsel (including local and special counsel) for the Company; and (x) all other costs and
expenses incident to the performance by the Company of its obligations hereunder. Except as
provided in this Section 5, Section 7 and Section 8 hereof, the Initial Purchasers shall pay their
own expenses, including the fees and disbursements of counsel.

          6. Conditions to the Obligations of the Initial Purchasers. The obligations of the
Initial Purchasers to purchase the Securities shall be subject to the accuracy of the
representations and warranties of the Company contained herein at the Execution Time and the
Closing Date, to the accuracy of the statements of the Company made in any certificates pursuant to
the provisions hereof, to the performance by the Company of its obligations hereunder and to the
following additional conditions:

          (a) The Company shall have requested and caused each of Skadden, Arps, Slate, Meagher & Flom
LLP, DLA Piper LLP (US) and Blakes, Cassels & Graydon LLP, counsel for the Company, to furnish to
the Representatives its opinion, dated the Closing Date and addressed to the Representatives
substantially in the form set forth in Annex B, Annex C, Annex D and Annex E herein:

          In rendering such opinion, such counsel may rely (A) as to matters involving the application
of laws of any jurisdiction other than the jurisdiction of incorporation of the

 

 

Company, the State
of New York or the federal laws of the
United States, to the extent they deem proper and specified
in such opinion, upon the opinion of other counsel of good standing whom they believe to be
reliable and who are satisfactory to counsel for the Initial Purchasers and (B) as to matters of
fact, to the extent they deem proper, on certificates of responsible officers of the Company and
public officials.

          The Representatives shall have received from Davis Polk & Wardwell LLP, counsel for the
Initial Purchasers, such opinion and negative assurance letter, dated the Closing Date and
addressed to the Representatives, with respect to the issuance and sale of the Securities, the
Indenture, the Registration Rights Agreement, the Disclosure Package, the Final
Memorandum (as amended or supplemented at the Closing Date) and other related matters as the
Representatives may reasonably require, and the Company shall have furnished to such counsel such
documents as they request for the purpose of enabling them to pass upon such matters.

          (b) The Company shall have furnished to the Representatives a certificate of the Company,
signed by (x) the Chairman of the Board or the Chief Executive Officer and (y) the principal
financial or accounting officer of the Company, dated the Closing Date, to the effect that:

     (i) the representations and warranties of the Company in this Agreement are
true and correct on and as of the Closing Date in all material respects with the
same effect as if made on the Closing Date, and the Company has complied with all
the agreements and satisfied all the conditions on its part to be performed or
satisfied hereunder at or prior to the Closing Date; and

     (ii) since the date of the most recent financial statements included or
incorporated by reference in the Disclosure Package and the Final Memorandum
(exclusive of any amendment or supplement thereto), there has been no material
adverse change in the condition (financial or otherwise), prospects, earnings,
business or properties of the Company and its subsidiaries, taken as a whole,
whether or not arising from transactions in the ordinary course of business, except
as set forth in or contemplated in the Disclosure Package and the Final Memorandum
(exclusive of any amendment or supplement thereto).

          (c) At the Execution Time and at the Closing Date, the Company shall have requested and caused
Deloitte & Touche LLP to furnish to the Representatives letters, dated respectively as of the
Execution Time and as of the Closing Date, in substantially the form previously delivered to the
Representatives, which is in form and substance satisfactory to the Representatives.

          (d) Subsequent to the Execution Time or, if earlier, the dates as of which information is
given in the Disclosure Package (exclusive of any amendment or supplement thereto) and the Final
Memorandum (exclusive of any amendment or supplement thereto), there shall not have been (i) any
change or decrease specified in the letter or letters referred to in paragraph (c) of this Section
6; or (ii) any change, or any development involving a prospective change, in or affecting the
condition (financial or otherwise), prospects, earnings, business or properties of the Company and
its subsidiaries taken as a whole, whether or not arising from transactions in the ordinary course
of business, except as set forth in or contemplated in the Disclosure Package and the Final
Memorandum (exclusive of any amendment or supplement thereto), the effect of which, in any case
referred to in clause (i) or (ii) above, is, in the sole

 

 

judgment of the Representatives, so
material and adverse as to make it impractical or inadvisable to proceed with the offering or
delivery of the Securities as contemplated in the Disclosure Package and the Final Memorandum
(exclusive of any amendment or supplement thereto).

          (e) The Securities shall be eligible for clearance and settlement through The Depository Trust
Company.

          (f) Subsequent to the Execution Time, there shall not have been any decrease in the rating
accorded to the Securities or any of the Company’s debt securities by any “nationally recognized
statistical rating organization” (as such term is defined by the Commission in Rule
15c3-1(c)(2)(vi)(F) of the Exchange Act) or any notice given of any intended or potential
decrease in any such rating or of a possible change in any such rating that does not indicate the
direction of the possible change.

          (g) The Initial Purchasers shall have received a counterpart of the Registration Rights
Agreement that shall have been executed and delivered by a duly authorized officer of the Company.

          (h) Prior to the Closing Date, the Company shall have furnished to the Representatives such
further information, certificates and documents as the Representatives may reasonably request.

          If any of the conditions specified in this Section 6 shall not have been fulfilled when and as
provided in this Agreement, or if any of the opinions and certificates mentioned above or elsewhere
in this Agreement shall not be reasonably satisfactory in form and substance to the Representatives
and counsel for the Initial Purchasers, this Agreement and all obligations of the Initial
Purchasers hereunder may be cancelled at, or at any time prior to, the Closing Date by the
Representatives. Notice of such cancellation shall be given to the Company in writing or by
telephone or facsimile confirmed in writing.

          The documents required to be delivered by this Section 6 will be delivered at the office of
counsel for the Initial Purchasers, at Davis Polk & Wardwell LLP, 450 Lexington Avenue New York, NY
10017, on the Closing Date.

          7. Reimbursement of Expenses. If the sale of the Securities provided for herein is
not consummated because any condition to the obligations of the Initial Purchasers set forth in
Section 6 hereof is not satisfied, because of any termination pursuant to Section 10 hereof or
because of any refusal, inability or failure on the part of the Company to perform any agreement
herein or comply with any provision hereof other than by reason of a default by any of the Initial
Purchasers, the Company will reimburse the Initial Purchasers severally through Banc of America
Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and RBS Securities Inc.
on demand for all expenses (including reasonable fees and disbursements of counsel) that shall have
been incurred by them in connection with the proposed purchase and sale of the Securities.

          8. Indemnification and Contribution. (a) The Company agrees to indemnify and hold
harmless each Initial Purchaser, the directors, officers, employees, Affiliates and agents of each
Initial Purchaser and each person who controls any Initial Purchaser within the meaning of either
the Act or the Exchange Act against any and all losses, claims, damages or liabilities, joint or
several, to which they or any of them may become subject under the Act, the Exchange Act or

 

 

other
U.S. federal or state statutory law or regulation, at common law or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based
upon any untrue statement or alleged untrue statement of a material fact contained in the
Preliminary Memorandum, the Disclosure Package, the Final Memorandum, any other written information
used by or on behalf of the Company in connection with the offer or sale of the Securities, or in
any amendment or supplement thereto, or in any electronic road show or arise out of or are based
upon the omission or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein, in the light of the circumstances under which
they were made, not misleading, and agrees to reimburse each such indemnified party, as incurred,
for any legal or other expenses reasonably incurred by it in connection with
investigating or defending any such loss, claim, damage, liability or action;
provided, however, that the Company will not be liable in any such case to the
extent that any such loss, claim, damage or liability arises out of or is based upon any such
untrue statement or alleged untrue statement or omission or alleged omission made in the
Preliminary Memorandum, the Disclosure Package, the Final Memorandum, or in any amendment thereof
or supplement thereto, in reliance upon and in conformity with written information furnished to the
Company by or on behalf of any Initial Purchaser through the Representatives specifically for
inclusion therein. This indemnity agreement will be in addition to any liability that the Company
may otherwise have.

          (b) Each Initial Purchaser severally, and not jointly, agrees to indemnify and hold harmless
the Company, each of its directors, each of its officers, and each person who controls the Company
within the meaning of either the Act or the Exchange Act, to the same extent as the foregoing
indemnity to each Initial Purchaser, but only with reference to written information relating to
such Initial Purchaser furnished to the Company by or on behalf of such Initial Purchaser through
the Representatives specifically for inclusion in the Preliminary Memorandum, the Disclosure
Package, the Final Memorandum or in any amendment or supplement thereto. This indemnity agreement
will be in addition to any liability that any Initial Purchaser may otherwise have. The Company
acknowledges that (i) the statements set forth in the final paragraph of the cover page regarding
delivery of the Securities and (ii), under the heading “Plan of Distribution”, (A) the third
paragraph related to the offering price of the Securities, (B) the third, fourth and fifth sentence
of sixth paragraph regarding market making activities, and (C) the fourteenth paragraph related to
stabilization, syndicate covering transactions and penalty bids in the Preliminary Memorandum and
the Final Memorandum constitute the only information furnished in writing by or on behalf of the
Initial Purchasers for inclusion in the Preliminary Memorandum, the Disclosure Package, the Final
Memorandum or in any amendment or supplement thereto.

          (c) Promptly after receipt by an indemnified party under this Section 8 of notice of the
commencement of any action, such indemnified party will, if a claim in respect thereof is to be
made against the indemnifying party under this Section 8, notify the indemnifying party in writing
of the commencement thereof; but the failure so to notify the indemnifying party (i) will not
relieve it from liability under paragraph (a) or (b) above unless and to the extent it did not
otherwise learn of such action and such failure results in the forfeiture by the indemnifying party
of substantial rights and defenses and (ii) will not, in any event, relieve the indemnifying party
from any obligations to any indemnified party other than the indemnification obligation provided in
paragraph (a) or (b) above. The indemnifying party shall be entitled to appoint counsel (including
local counsel) of the indemnifying party’s choice at the indemnifying party’s expense to represent
the indemnified party in any action for which indemnification is sought (in which case the
indemnifying party shall not thereafter be responsible for the fees and expenses of any

 

 

separate
counsel, other than local counsel if not appointed by the indemnifying party, retained by the
indemnified party or parties except as set forth below); provided, however, that
such counsel shall be satisfactory to the indemnified party. Notwithstanding the indemnifying
party’s election to appoint counsel (including local counsel) to represent the indemnified party in
an action, the indemnified party shall have the right to employ separate counsel (including local
counsel), and the indemnifying party shall bear the reasonable fees, costs and expenses of such
separate counsel if (i) the use of counsel chosen by the indemnifying party to represent the
indemnified party would present such counsel with a conflict of interest; (ii) the actual or
potential defendants in, or targets of, any such action include both the indemnified party and the
indemnifying party and the indemnified party shall have reasonably concluded that there may be
legal defenses available to it and/or other indemnified parties that are different from or
additional to those
available to the indemnifying party; (iii) the indemnifying party shall not have employed
counsel satisfactory to the indemnified party to represent the indemnified party within a
reasonable time after notice of the institution of such action; or (iv) the indemnifying party
shall authorize the indemnified party to employ separate counsel at the expense of the indemnifying
party. An indemnifying party will not, without the prior written consent of the indemnified
parties, settle or compromise or consent to the entry of any judgment with respect to any pending
or threatened claim, action, suit or proceeding in respect of which indemnification or contribution
may be sought hereunder (whether or not the indemnified parties are actual or potential parties to
such claim or action) unless such settlement, compromise or consent includes an unconditional
release of each indemnified party from all liability arising out of such claim, action, suit or
proceeding.

          (d) In the event that the indemnity provided in paragraph (a) or (b) of this Section 8 is
unavailable to or insufficient to hold harmless an indemnified party for any reason, the Company
and the Initial Purchasers severally agree to contribute to the aggregate losses, claims, damages
and liabilities (including legal or other expenses reasonably incurred in connection with
investigating or defending any loss, claim, damage, liability or action) (collectively “Losses”) to
which the Company and one or more of the Initial Purchasers may be subject in such proportion as is
appropriate to reflect the relative benefits received by the Company on the one hand and by the
Initial Purchasers on the other from the offering of the Securities; provided,
however, that in no case shall any Initial Purchaser be responsible for any amount in
excess of the purchase discount or commission applicable to the Securities purchased by such
Initial Purchaser hereunder. If the allocation provided by the immediately preceding sentence is
unavailable for any reason, the Company and the Initial Purchasers severally shall contribute in
such proportion as is appropriate to reflect not only such relative benefits but also the relative
fault of the Company on the one hand and the Initial Purchasers on the other in connection with the
statements or omissions that resulted in such Losses, as well as any other relevant equitable
considerations. Benefits received by the Company shall be deemed to be equal to the total net
proceeds from the offering (before deducting expenses) received by it, and benefits received by the
Initial Purchasers shall be deemed to be equal to the total purchase discounts and commissions.
Relative fault shall be determined by reference to, among other things, whether any untrue or
alleged untrue statement of a material fact or the omission or alleged omission to state a material
fact relates to information provided by the Company on the one hand or the Initial Purchasers on
the other, the intent of the parties and their relative knowledge, access to information and
opportunity to correct or prevent such untrue statement or omission. The Company and the Initial
Purchasers agree that it would not be just and equitable if contribution were determined by pro
rata allocation or any other method of allocation that does not take account of the equitable
considerations referred to above. Notwithstanding the provisions of this paragraph (d), no person
guilty of fraudulent misrepresentation (within the

 

 

meaning of Section 11(f) of the Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.
For purposes of this Section 8, each person who controls an Initial Purchaser within the meaning of
either the Act or the Exchange Act and each director, officer, employee, Affiliate and agent of an
Initial Purchaser shall have the same rights to contribution as such Initial Purchaser, and each
person who controls the Company within the meaning of either the Act or the Exchange Act and each
officer and director of the Company shall have the same rights to contribution as the Company,
subject in each case to the applicable terms and conditions of this paragraph (d).

          9. Default by an Initial Purchaser. If any one or more Initial Purchasers shall fail
to purchase and pay for any of the Securities agreed to be purchased by such Initial Purchaser
hereunder at the Closing Date and such failure to purchase shall constitute a default in the
performance of its or their obligations under this Agreement, the remaining Initial Purchasers
shall be obligated severally to take up and pay for (in the respective proportions which the
principal amount of Securities set forth opposite their names in Schedule I hereto bears to the
aggregate principal amount of Securities set forth opposite the names of all the remaining Initial
Purchasers) the Securities which the defaulting Initial Purchaser or Initial Purchasers agreed but
failed to purchase; provided, however, that in the event that the aggregate
principal amount of Securities which the defaulting Initial Purchaser or Initial Purchasers agreed
but failed to purchase shall exceed 10% of the aggregate principal amount of Securities set forth
in Schedule I hereto, the remaining Initial Purchasers shall have the right to purchase all, but
shall not be under any obligation to purchase any, of the Securities, and if such nondefaulting
Initial Purchasers do not purchase all the Securities, this Agreement will terminate without
liability to any nondefaulting Initial Purchaser or the Company. In the event of a default by any
Initial Purchaser as set forth in this Section 9, the Closing Date shall be postponed for such
period, not exceeding five Business Days, as the Representatives shall determine in order that the
required changes in the Final Memorandum or in any other documents or arrangements may be effected.
Nothing contained in this Agreement shall relieve any defaulting Initial Purchaser of its
liability, if any, to the Company or any nondefaulting Initial Purchaser for damages occasioned by
its default hereunder.

          10. Termination. This Agreement shall be subject to termination in the reasonable
discretion of the Representatives, by notice given to the Company prior to delivery of, and payment
for, the Securities, if at any time prior to such delivery and payment (i) trading in the Company’s
Common Stock shall have been suspended by the Commission or trading in securities generally on the
New York Stock Exchange shall have been suspended or limited or minimum prices shall have been
established on such exchange; (ii) a banking moratorium shall have been declared either by U.S.
federal or New York State authorities or by the authorities of Maryland; or (iii) there shall have
occurred any outbreak or escalation of hostilities, declaration by the United States of a national
emergency or war or other calamity or crisis the effect of which on financial markets is such as to
make it, in the sole judgment of the Representatives, impractical or inadvisable to proceed with
the offering or delivery of the Securities as set forth in the Disclosure Package and the Final
Memorandum (exclusive of any amendment or supplement thereto).

          11. Representations and Indemnities to Survive. The respective agreements,
representations, warranties, indemnities and other statements of the Company or its officers and of
the Initial Purchasers set forth in or made pursuant to this Agreement will remain in full force
and effect, regardless of any investigation made by or on behalf of the Initial Purchasers or the

          
 

 

Company or any of the indemnified persons referred to in Section 8 hereof, and will survive
delivery of and payment for the Securities. The provisions of Sections 7 and 8 hereof shall
survive the termination or cancellation of this Agreement.

          12. Notices. All communications hereunder will be in writing and effective only on
receipt, and, if sent to the Representatives, will be mailed, delivered or telefaxed to Banc of
America Securities LLC, One Bryant Park, New York, New York 10036 (fax no.: 212-901-7897),
Attention: Legal Department; Citigroup Global Markets Inc., 388 Greenwich Street, New York, New
York 10013 (fax no.: 212-816-7912), Attention: General Counsel; J.P. Morgan Securities Inc., 383
Madison Avenue, 3rd Floor, New York, New York 10179 (fax no.: 212-834-6081), Attention:
High Grade Syndicate Desk; and RBS Securities Inc., 600 Washington Blvd., Stamford, Connecticut
06901 (fax no.: 203-873-4534), Attention: Debt Capital Markets Syndicate; or, if sent to the
Company, will be mailed, delivered or telefaxed to (856) 917-0950
and confirmed to it at PHH Corporation, 3000 Leadenhall Road, Mt. Laurel New Jersey 08054.
Attention: General Counsel, with a copy (which copy shall not constitute notice) to Skadden, Arps,
Slate, Meagher & Flom LLP & Affiliates, 4 Times Square, New York, New York 10035 (fax: (212)
735-2000); Attention: Michael Zeidel.

          13. Successors. This Agreement will inure to the benefit of and be binding upon the
parties hereto and their respective successors and the indemnified persons referred to in Section 8
hereof and their respective successors, and, except as expressly set forth in Section 5(j) hereof,
no other person will have any right or obligation hereunder.

          14. Jurisdiction. The Company agrees that any suit, action or proceeding against the
Company brought by any Initial Purchaser, the directors, officers, employees and agents of any
Initial Purchaser, or by any person who controls any Initial Purchaser, arising out of or based
upon this Agreement or the transactions contemplated hereby may be instituted in any State or U.S.
federal court in The City of New York and County of New York, and waives any objection which it may
now or hereafter have to the laying of venue of any such proceeding, and irrevocably submits to the
non-exclusive jurisdiction of such courts in any suit, action or proceeding.

          15. Integration. This Agreement supersedes all prior agreements and understandings
(whether written or oral) between the Company and the Initial Purchasers, or any of them, with
respect to the subject matter hereof.

          16. Applicable Law. This Agreement will be governed by and construed in accordance
with the laws of the State of New York applicable to contracts made and to be performed within the
State of New York.

          17. Waiver of Jury Trial. The Company 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 Agreement or the transactions contemplated hereby.

          18. No Fiduciary Duty. The Company hereby acknowledges that (a) the purchase and sale
of the Securities pursuant to this Agreement is an arm’s-length commercial transaction between the
Company, on the one hand, and the Initial Purchasers and any Affiliate through which they may be
acting, on the other, (b) the Initial Purchasers are acting as principal and not as an agent or
fiduciary of the Company and (c) the Company’s engagement of the Initial Purchasers in connection
with the offering and the process leading up to the offering is as

 

 

independent
contractors and not in any other capacity. Furthermore, the Company agrees that it is solely
responsible for making its own judgments in connection with the offering (irrespective of whether
any of the Initial Purchasers has advised or is currently advising the Company on related or other
matters). The Company agrees that it will not claim that the Initial Purchasers have rendered
advisory services of any nature or respect, or owe an agency, fiduciary or similar duty to the
Company, in connection with such transaction or the process leading thereto.

          19. Waiver of Tax Confidentiality. Notwithstanding anything herein to the contrary,
purchasers of the Securities (and each employee, representative or other agent of a purchaser) may
disclose to any and all persons, without limitation of any kind, the U.S. tax treatment and U.S.
tax structure of any transaction contemplated herein and all materials of any kind (including
opinions or other tax analyses) that are provided to the purchasers of the Securities relating to
such U.S. tax treatment and U.S tax structure, other than any information
for which nondisclosure is reasonably necessary in order to comply with applicable securities
laws.

          20. Counterparts. This Agreement may be signed in one or more counterparts, each of
which shall constitute an original and all of which together shall constitute one and the same
agreement.

          21. Headings. The section headings used herein are for convenience only and shall not
affect the construction hereof.

          22. Definitions. The terms that follow, when used in this Agreement, shall have the
meanings indicated.

          “Act” shall mean the U.S. Securities Act of 1933, as amended, and the rules and regulations of
the Commission promulgated thereunder.

          “Affiliate” shall have the meaning specified in Rule 501(b) of Regulation D but shall not
include any individual or entity who may be deemed an Affiliate as a result of such individuals or
entities beneficial ownership of Company securities.

          “Business Day” shall mean any day other than a Saturday, a Sunday or a legal holiday or a day
on which banking institutions or trust companies are authorized or obligated by law to close in The
City of New York.

          “Commission” shall mean the Securities and Exchange Commission.

          “Disclosure Package” shall mean (i) the Preliminary Memorandum, as amended or supplemented at
the Execution Time, and (ii) the final term sheet prepared pursuant to Section 5(r) hereto and in
the form attached as Schedule II hereto.

          “Exchange Act” shall mean the U.S. Securities Exchange Act of 1934, as amended, and the rules
and regulations of the Commission promulgated thereunder.

          “Execution Time” shall mean the date and time that this Agreement is executed and delivered by
the parties hereto.

 

 

          “Investment Company Act” shall mean the U.S. Investment Company Act of 1940, as amended, and
the rules and regulations of the Commission promulgated thereunder.

          “Regulation D” shall mean Regulation D under the Act.

          “Regulation S” shall mean Regulation S under the Act.

          “Regulation S-X” shall mean Regulation S-X under the Act.

          “Trust Indenture Act” shall mean the U.S. Trust Indenture Act of 1939, as amended, and the
rules and regulations of the Commission promulgated thereunder.

          If the foregoing is in accordance with your understanding of our agreement, please sign and
return to us the enclosed duplicate hereof, whereupon this letter and your
acceptance shall represent a binding agreement between the Company and the several Initial
Purchasers.

	 	 	 	 	 
	 	Very truly yours,

PHH Corporation

 	 
	 	By:  	/s/ Sandra E. Bell
 	 
	 	 	Name:  	Sandra E. Bell 	 
	 	 	Title:  	Executive Vice President and Chief
Financial Officer 	 
	 

 

 

	 	 	 	 	 
	The foregoing Agreement is hereby

confirmed and accepted as of the

date first above written.

Banc of America Securities LLC

Citigroup Global Markets Inc.

J.P. Morgan Securities Inc.

RBS Securities Inc.

By: Banc of America Securities LLC

 	 	 
	By:  	/s/ Adam Cady
 	 	 
	 	Name: 	Adam Cady 	 	 
	 	Title:  	Managing Director 	 	 
	 
	By: Citigroup Global Markets Inc.

 	 	 
	By:  	/s/ Robert B. Goldstein
 	 	 
	 	Name:  	Robert B. Goldstein 	 	 
	 	Title:  	Managing Director 	 	 
	 
	By: J.P. Morgan Securities Inc.

 	 	 
	By:  	/s/ Maria Sramek
 	 	 
	 	Name:  	Maria Sramek 	 	 
	 	Title:  	Executive Director 	 	 
	 
	By: RBS Securities Inc.

 	 	 
	By:  	Michael F. Newcomb II
 	 	 
	 	Name:  	Michael F. Newcomb II 	 	 
	 	Title:  	Managing Director 	 	 
	 

For themselves and the other several

Initial Purchasers named in

Schedule I to the foregoing Agreement.

[Signature Page to Purchase Agreement]

 

 

SCHEDULE I

	 	 	 	 	 
	 	 	Principal Amount
	 	 	of Securities to be
	Initial Purchasers	 	Purchased
	Banc of America Securities LLC
	 	 	U.S.$70,000,000	 
	Citigroup Global Markets Inc.
	 	 	47,600,000	 
	J.P. Morgan Securities Inc.
	 	 	37,450,000	 
	RBS Securities Inc.
	 	 	47,600,000	 
	Barclays Capital Inc.
	 	 	37,450,000	 
	Deutsche Bank Securities Inc.
	 	 	37,450,000	 
	Wells Fargo Securities, LLC
	 	 	47,600,000	 
	BNY Mellon Capital Markets, LLC
	 	 	12,425,000	 
	Scotia Capital (USA) Inc.
	 	 	12,425,000	 
	Total
	 	 	U.S.$350,000,000	 

 

 

SCHEDULE II

			
	 	 	 
	PRICING TERM SHEET
	 	Strictly Confidential
	Dated August 6, 2010	 	 

PHH Corporation

9.25% Senior Notes due 2016

The information in this pricing term sheet supplements PHH Corporation’s preliminary offering
memorandum, dated August 3, 2010 (the “Preliminary Offering Memorandum”) and supersedes the
information in the Preliminary Offering Memorandum to the extent inconsistent with the information
in the Preliminary Offering Memorandum. In all other respects, this term sheet is qualified in its
entirety by reference to the Preliminary Offering Memorandum. Terms used herein but not defined
herein shall have the respective meanings as set forth in the Preliminary Offering Memorandum. All
references to dollar amounts are references to U.S. dollars.

	 	 	 

	Issuer:	 	PHH Corporation (“PHH”)

	 	 	 
	Title of securities:	 	9.25% Senior Notes due 2016 (the “Notes”)

	 	 	 
	Distribution:	 	144A / Reg S with Registration Rights as set forth in the
Preliminary Offering Memorandum

	 	 	 
	Aggregate principal amount:
	 	$350,000,000 (an increase of $100 million from the aggregate
principal amount set forth in the Preliminary Offering
Memorandum)
	 	 	 
	Gross Proceeds:	 	$350,000,000

	 	 	 
	Use of Proceeds:	 	PHH will use the net proceeds of this offering as set forth
in the Preliminary Offering Memorandum to repay borrowings
under the Amended Credit Facility and, to the extent any
proceeds remain, for general corporate purposes. As of June
30, 2010, on a pro forma basis, borrowings under the Amended
Credit Facility would have been $36 million and availability
under the Amended Credit Facility would have been $769
million

	 	 	 
	Offering price:	 	The Notes will be issued at a price of 100% of their
principal amount plus accrued interest, if any, from August
11, 2010

	 	 	 
	Annual interest rate:	 	The Notes will bear interest at the rate of 9.25% per annum
from August 11, 2010

	 	 	 
	Interest payment dates:	 	March 1 and September 1, with initial payment on March 1, 2011

	 	 	 
	Record Dates:	 	February 15 and August 15

	 	 	 
	Optional Make-Whole Redemption:	 	The Notes may be redeemed at any time and from time to time,
at the option of PHH, in whole or in part, at a “make-whole”
redemption price equal to the greater of (1) the aggregate
principal amount being redeemed or (2) the sum of the present
values of the remaining scheduled payments of the principal
and interest (other than accrued

 

 

	 	 	 

	 	 	interest) on the Notes being
redeemed, discounted to the redemption date on a semi-annual
basis (assuming a 360-day year consisting of twelve 30-day
months) at the Treasury Rate plus 50 basis points, plus in
the case of both (1) and (2), any accrued and unpaid interest
to, but not including, the redemption date

	 	 	 
	Change of Control:	 	Not later than 30 days following the occurrence of a Change
of Control, the Company will make an Offer to Purchase all
outstanding Notes at a purchase price equal to 101% of the
principal amount plus accrued and unpaid interest to, but not
including, the date of purchase

	 	 	 
	Maturity date:	 	March 1, 2016

	 	 	 
	Trade date:	 	August 6, 2010

	 	 	 
	Settlement date:	 	August 11, 2010

	 	 	 
	CUSIP:	 	144A: 693320 AK9 / Reg S: U7173E AA0

	 	 	 
	ISIN NUMBER:	 	144A: US693320AK92 / Reg S: USU7173EAA02

	 	 	 
	Denominations:	 	$2,000

	 	 	 
	Increments:	 	$1,000

	 	 	 
	Joint Book-Running Managers:	 	Banc of America Securities LLC

Citigroup Global Markets Inc.

J.P. Morgan Securities Inc.

RBS Securities Inc.

Barclays Capital Inc.

Deutsche Bank Securities Inc.

Wells Fargo Securities, LLC

	 	 	 
	Co-Managers:	 	BNY Mellon Capital Markets, LLC

Scotia Capital (USA) Inc.

This material is confidential and is for your information only and is not intended to be used by
anyone
other than you.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any
securities
in any jurisdiction to any person to whom it is unlawful to make such offer or solicitation in such
jurisdiction.

The Notes have not been registered under the Securities Act of 1933, as amended (the “Securities
Act”), or the laws of any other place, and are being offered only (1) to “qualified institutional
buyers” as defined in Rule 144A under the Securities Act and (2) outside the United States to
non-U.S. persons in compliance with Regulation S under the Securities Act.

 

 

ANNEX A

Significant Subsidiaries

Chesapeake Finance Holdings LLC

Chesapeake Funding LLC

D. L. Peterson Trust

PHH Broker Partner Corporation

PHH Home Loans, LLC

PHH Mortgage Corporation

PHH Vehicle Management Services, LLC (d/b/a PHH Arval)

 

 

ANNEX B

FORM OF OPINION AND NEGATIVE ASSURANCE OF SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP

          Based upon the foregoing and subject to the limitations, qualifications, exceptions and
assumptions set forth herein, we are of the opinion that:

     1. Each of the Delaware Subsidiaries is validly existing in good standing under the laws of
the State of Delaware.

     2. The Purchase Agreement has been duly executed and delivered by the Company, to the extent
such execution and delivery are governed by the laws of the State of New York.

     3. The Indenture has been duly executed and delivered by the Company, to the extent such
execution and delivery are governed by the laws of the State of New York, and is a valid and
binding agreement of the Company, enforceable against the Company in accordance with its terms.

     4. The RRA has been duly executed and delivered by the Company, to the extent such execution
and delivery are governed by New York law, and is a valid and binding agreement of the Company,
enforceable against the Company in accordance with its terms.

     5. The execution and delivery by the Company of each of the Transaction Documents and the
consummation by the Company of the transactions contemplated thereby, including the issuance and
sale of the Securities, will not (i) conflict with the Certificates of Incorporation/Formation or
By-Laws, (ii) constitute a violation of, or a breach or default under, the terms of any Applicable
Contract or (iii) violate or conflict with, or result in any contravention of, any Applicable Law
or any Applicable Order. We do not express any opinion, however, as to whether the execution,
delivery or performance by the Company of each of the Transaction Documents will constitute a
violation of, or a default under, any covenant, restriction or provision with respect to financial
ratios or tests or any aspect of the financial condition or results of operations of the Company or
any of its subsidiaries.

     6. No Governmental Approval, which has not been obtained or taken and is not in full force and
effect, is required to authorize, or is required for, the execution or delivery of each of the
Transaction Documents by the Company or the consummation by the Company of the transactions
contemplated thereby.

     7. The Securities when duly authenticated by the Trustee and issued and delivered by the
Company against payment therefor in accordance with the terms of the Purchase Agreement and the
Indenture, will constitute valid and binding obligations of the Company entitled to the benefits of
the Indenture and enforceable against the Company in accordance with their terms.

     8. The statements in the Offering Memorandum and the General Disclosure Package under the
caption “Description of Notes,” other than “—Global Notes” (except for the second and third
paragraph therein), insofar as such statements purport to summarize certain provisions of

 

 

the Indenture, the Securities and the Registration Rights Agreement, fairly summarize such
provisions in all material respects.

     9. The Company is not and, solely after giving effect to the offering and sale of the
Securities and the application of the proceeds thereof as described in the Offering Memorandum and
the General Disclosure Package, will not be subject to registration and regulation as an
“investment company” as such term is defined in the Investment Company Act of 1940.

     10. To our knowledge, there are no legal or governmental proceedings pending to which the
Company or any of its subsidiaries is a party or to which any property of the Company or any of its
subsidiaries is subject that would be required to be disclosed in a registration statement on Form
S-1, pursuant to Item 103 of Regulation S-K of the Rules and Regulations under the Securities Act
of 1933, as amended, that are not so disclosed in the General Disclosure Package and the Offering
Memorandum, except that we do not express any opinion in this paragraph with respect to legal or
governmental proceedings relating to regulatory matters of the type referred to in the General
Disclosure Package and the Offering Memorandum under the caption “Risk Factors — Risks Related to
our Business.”

     11. Assuming (i) the accuracy of the representations and warranties of the Company set forth
in Sections 1(c) and 1(d) of the Purchase Agreement and of you in Section 4 of the Purchase
Agreement, (ii) the due performance by the Company of the covenants and agreements set forth in
Sections 5(g), 5(i) and 5(k) of the Purchase Agreement, (iii) your compliance with the offering and
transfer procedures and restrictions described in the Offering Memorandum and (iv) the accuracy of
the representations and warranties made in accordance with the Purchase Agreement and the Offering
Memorandum by purchasers to whom you initially resell the Securities, the offer, sale and delivery
of the Securities to you in the manner contemplated by the Purchase Agreement and the Offering
Memorandum and the initial resale of the Securities by you in the manner contemplated in the
Offering Memorandum and the Purchase Agreement, do not require registration under the Securities
Act or qualification of the Indenture under the Trust Indenture Act of 1933, it being understood
that we do not express any opinion as to any subsequent reoffer or resale of any Security.

 

 

ANNEX C

FORM OF TAX OPINION OF SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP

     Based upon and subject to the foregoing, we are of the opinion that under current U.S. federal
income tax law, although the discussion set forth in the General Disclosure Package and the
Offering Memorandum under the heading “CERTAIN U.S. FEDERAL INCOME TAX CONSIDERATIONS FOR NON-U.S.
HOLDERS” does not purport to discuss all possible U.S. federal income tax considerations relating
to the acquisition, ownership or disposition of the Securities, such discussion constitutes, in all
material respects, a fair and accurate summary of such U.S. federal income tax considerations to
Non-U.S. Holders (as defined in the General Disclosure Package and the Offering Memorandum) who
purchase the Securities pursuant to the Offering Memorandum, subject to the qualifications set
forth in such discussion.

 

 

ANNEX D

FORM OF OPINION OF DLA PIPER US LLP

          1. Each of the Company and PHH Broker Partner Corporation, a Maryland Corporation (“PHH Broker
Partner”), has been duly incorporated and is validly existing as a corporation under the laws of
the State of Maryland, with corporate power and authority to own or lease, as the case may be, its
properties and conduct its business as and if described in the Disclosure Package and the Final
Memorandum.

          2. PHH Mortgage Corporation, a New Jersey corporation (“PHH Mortgage”), is validly existing
and in good standing as a corporation under the laws of the State of New Jersey, with corporate
power and authority to own or lease, as the case may be, its properties and conduct its business as
and if described in the Disclosure Package and the Final Memorandum.

          3. The Purchase Agreement has been duly authorized, executed and delivered by the Company.

          4. The Indenture has been duly authorized, executed and delivered by the Company.

          5. The Securities have been duly authorized by all necessary corporate action of the Company.

          6. The Registration Rights Agreement has been duly authorized, executed and delivered by the
Company.

          7. The execution and delivery of the Indenture, the Purchase Agreement and the Registration
Rights Agreement by the Company, the issue and sale of the Securities by the Company pursuant to
the Purchase Agreement and the performance by the Company of its obligations under the Indenture,
the Purchase Agreement, the Registration Rights Agreement and the Securities do not (i) conflict
with, or result in any breach or violation of, or imposition of any lien, charge or encumbrance
upon any property or asset of the Company, PHH Mortgage or PHH Broker Partner pursuant to the
Charter or Bylaws (as each such term is defined on Exhibit A hereto) of the Company or the
Certificate of Incorporation of PHH Mortgage or the Bylaws of PHH Mortgage (as each such term is
defined on Exhibit A hereto) or the Charter of PHH Broker Partner or the Bylaws of PHH Broker
Partner (as each such term is defined on Exhibit A hereto); (ii) constitute a violation of, or a
breach or default under, the terms of any Applicable Document; or (iii) violate any Maryland
statute, law, rule or regulation applicable to the Company, PHH Mortgage or PHH Broker Partner or,
to our knowledge, any judgment, order or decree applicable to the Company, PHH Mortgage or PHH
Broker Partner of any Maryland court, regulatory body, administrative agency, governmental body,
arbitrator or other Maryland governmental authority having jurisdiction over the Company, PHH
Mortgage or PHH Broker Partner or any of their respective properties.

          8. No consent, approval, authorization or order of any Maryland court or governmental agency
or authority, is required for the Company’s execution, delivery and

 

 

performance of its obligations under the Purchase Agreement, the Indenture and the
Registration Rights Agreement and consummation of the transactions contemplated thereby, except
such as may be required under Maryland blue sky laws.

 

 

Exhibit A

     1. The Purchase Agreement;

     2. The Indenture;

     3. The Registration Rights Agreement;

     4. The Disclosure Package;

     5. The Final Memorandum;

     6. A certificate of the [ ] of the Company, the [ ] of PHH Mortgage and
the [ ] of PHH Broker Partner, dated as of [ ], 2010 (the “Officers’ Certificate”);

     7. The following corporate records of the Company, PHH Mortgage and PHH Broker Partner:

          (a) PHH Corporation:

     (i) Articles of Amendment and Restatement of PHH Corporation effective as of
January 31, 2005, Articles Supplementary of PHH Corporation effective as of March
27, 2008 and Articles of Amendment of PHH Corporation effective as of June 12, 2009
(collectively, the “Charter”);

     (ii) Amended and Restated By-Laws of PHH Corporation effective as of March 30,
2009 (the “Bylaws”);

     (iii) Minutes of proceedings of the Board of Directors of the Company and
certain committees thereof as certified in the Officers’ Certificate;

     (iv) A short form good standing certificate issued by the Maryland State
Department of Assessments and Taxation, dated as of [ ], 2010;

          (b) PHH Mortgage Corporation:

     (i) Certificate of Incorporation of United States Mortgage Corporation filed
with the Secretary of State of the State of New Jersey and effective October 28,
1977 as amended or supplemented by the Amendment to Certificate of Incorporation of
United States Mortgage Corporation filed with the Secretary of State of the State
of New Jersey and effective August 15, 1978, the Certificate of Amendment to the
Certificate of Incorporation of United States Mortgage Corporation filed on January
16, 1980 with the Secretary of State of the State of New Jersey and effective
February 1, 1980, the Certificate of Amendment to the Certificate of Incorporation
of US Mortgage Corporation filed on February 1, 1980 with the Secretary of State of
the State of New Jersey and dated September 12, 1979, the Certificate of Amendment
to the Certificate of Incorporation of US Mortgage Corporation filed on January 21,
1981 with the

 

 

Secretary of State of the State of New Jersey and dated October 31, 1980, the
Certificate of Amendment to the Certificate of Incorporation of US Mortgage
Corporation filed on April 25, 1988 with the Secretary of State of the State of New
Jersey and effective May 1, 1988, the Certificate of Amendment to the Certificate
of Incorporation of PHH US Mortgage Corporation filed on May 15, 1995 with the
Secretary of State of the State of New Jersey and effective July 1, 1995, the
Certificate of Merger of US Mortgage Corporation and PHH Mortgage Services
Corporation filed with the Secretary of State of the State of Delaware and
effective April 1, 1996, the Statement of Address of PHH Mortgage Services
Corporation filed June 8, 1996, the Certificate of Amendment to the Certificate of
Incorporation of PHH Mortgage Services Corporation filed on November 24, 1997 with
the Secretary of State of the State of New Jersey and effective January 1, 1998,
the Certificate of Correction of PHH Mortgage Services Corporation filed on
December 8, 1997 with the Secretary of State of the State of New Jersey and dated
December 5, 1997, the Certificate of Merger/Consolidation of American West
Mortgage Company of Colorado and Cendant Mortgage Corporation filed on December 17,
2001 with the Secretary of State of the State of New Jersey and effective December
31, 2001 and attachments thereto, and the Certificate of Amendment to the
Certificate of Incorporation filed on January 7, 2005 with the Secretary of State
of the State of New Jersey and effective February 1, 2005 (collectively, the
“Certificate of Incorporation of PHH Mortgage”);

     (ii) By-Laws of US Mortgage Corporation (the “Bylaws of PHH Mortgage”);

     (iii) Good Standing Certificate issued by the Secretary of State of the State
of New Jersey dated as of [ ], 2010;

          (c) PHH Broker Partner:

     (i) Articles of Incorporation of PHH Lawsuit Claims, Inc. filed with the State
Department of Assessments and Taxation of the State of Maryland filed July 26, 1990
and effective July 26, 1990, as amended or supplemented by the Articles of
Amendment of PHH Lawsuit Claims, Inc. filed with the State Department of
Assessments and Taxation of the State of Maryland filed March 4, 1997 and effective
March 4, 1997 (the “Charter of PHH Broker Partner”);

     (ii) Bylaws of PHH Broker Partner Corporation (the “Bylaws of PHH Broker
Partner”);

     (iii) A short form good standing certificate issued by the Maryland State
Department of Assessments and Taxation dated as of [ ], 2010

 

 

Exhibit B

Applicable Documents

     1. PHH Corporation Non-Employee Directors Deferred Compensation Plan;

     2. Form of PHH Corporation 2005 Equity and Incentive Plan Non-Qualified Stock Option
Agreement, as amended;

     3. Form of PHH Corporation 2005 Equity and Incentive Plan Non-Qualified Stock Option
Conversion Award Agreement;

     4. Form of PHH Corporation 2005 Equity and Incentive Plan Non-Qualified Stock Option Award
Agreement, as revised June 28, 2005;

     5. Form of PHH Corporation 2005 Equity and Incentive Plan Restricted Stock Unit Award
Agreement, as revised June 28, 2005;

     6. Form of 2009 Performance Unit Award Notice and Agreement for Certain Executive Officers, as
approved by the Compensation Committee on March 25, 2009;

     7. Amended and Restated 2005 Equity and Incentive Plan (as amended and restated through June
17, 2009);

     8. Transition Services and Separation Agreement, dated August 5, 2009, by and between PHH
Corporation and Terrence W. Edwards (as amended on September 11, 2009);

     9. Employment Agreement dated as of October 26, 2009, between Jerome J. Selitto and PHH
Corporation.

 

 

ANNEX E

FORM OF OPINION OF BLAKES, CASSELS & GRAYDON LLP

Based on and subject to the foregoing and the assumptions and qualifications set out at the end of
this opinion, we are of the opinion that:

The execution and delivery by the Company of each of the Transaction Documents and the consummation
by the Company of the transactions contemplated thereby, including the issuance and sale of the
Securities, will not constitute a violation of, or a breach or default under, the terms of any
Canadian Document.

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