Document:

exv10w1

 

Exhibit 10.1

Execution Copy

10,727,500 Shares

ENTREMED, INC.

Common Stock

PLACEMENT AGENCY AGREEMENT

December 12, 2006

THINKEQUITY PARTNERS LLC

RODMAN & RENSHAW, LLC

     c/o ThinkEquity Partners LLC

31 West 52nd Street

17th Floor

New York, NY 10019

Ladies and Gentlemen:

     EntreMed, Inc., a Delaware corporation (the “Company”), proposes, subject to the terms and
conditions stated herein, to issue and sell up to an aggregate of 10,727,500 shares (the “Shares”)
of the Company’s common stock, $0.01 par value per share (the “Common Stock”) to certain investors
(each an “Investor” and, collectively, the “Investors”). The Company desires to engage ThinkEquity
Partners LLC (“ThinkEquity”) as lead placement agent, and Rodman & Renshaw, LLC (“Rodman” and
together with ThinkEquity, the “Placement Agents”) as co-placement agent, as set forth herein in
connection with such issuance and sale. ThinkEquity is acting as representative of the Placement
Agents (the “Representative”). The Shares are more fully described in the Registration Statement
(as hereinafter defined).

     1. Agreement to Act as Placement Agents; Delivery and Payment. On the basis of the
representations, warranties and agreements of the Company herein contained, and subject to the
terms and conditions set forth in this Agreement:

          (a) The Company hereby engages the Placement Agents to act as its exclusive placement agents
in connection with the issuance and sale by the Company of Shares to the Investors and the
Placement Agents hereby agree, as agents of the Company, to use their best efforts to solicit
offers to purchase the Shares from the Company upon the terms and conditions set forth in the
Prospectus (as hereinafter defined). Upon the occurrence of the Closing (as hereinafter defined),
the Company shall pay to the Placement Agents, by wire transfer of immediately available funds
payable to the order of the Placement Agents, to an account designated by the Representative, an
aggregate of six percent (6.0%) of the gross proceeds received by the Company from its sale of the
Shares (the “Placement Fee”). Prior to the earlier of (i) the date on which this Agreement is
terminated and (ii) the Closing Date (as hereinafter defined), the Company shall not, without the
prior written consent of the Representative, solicit or accept offers to purchase Shares of the
Company (other than pursuant to the exercise of options, warrants or other convertible securities
to purchase shares of Common Stock that are outstanding at the date hereof) otherwise than through
the Placement Agents in accordance herewith.

 

 

          (b) The Company expressly acknowledges and agrees that the Placement Agents’ obligations
hereunder are on a best efforts basis and this Agreement shall not give rise to a commitment by the
Placement Agents or any of their affiliates to underwrite or purchase any of the Shares or
otherwise provide any financing, and the Placement Agents shall have no authority to (and agree not
to purport to) bind the Company in respect of the sale of any Shares. The sale of the Shares shall
be made pursuant to the subscription terms providing pricing and other information as set forth on
Exhibit A hereto (the “Subscription Terms”). The Company shall have the sole right to
accept offers to purchase the Shares and may reject any such offer in whole or in part.
Notwithstanding the foregoing, it is understood and agreed that the Placement Agents or any of
their affiliates may, solely at their discretion and without any obligation to do so, purchase
Shares as principals; provided, however, that any such purchases by the Placement Agents (or their
affiliates) shall be fully disclosed to the Company and approved by the Company in accordance with
the previous sentence.

          (c) The Company, the Placement Agents and JP Morgan Chase Bank, N.A. (the “Escrow Agent”) have
entered into an Escrow Agreement dated as of December 12, 2006 (the “Escrow Agreement”). Subject
to the terms and conditions hereof and of the Escrow Agreement, payment of the purchase price for
the Shares shall be made to the Company in the manner set forth below by Federal Funds wire
transfer, against delivery of certificates for the Shares to such persons, and shall be registered
in such name or names and shall be in such denominations, as the Placement Agents may request at
least one business day before the Closing Date. Payment of the purchase price for the Shares to be
purchased by Investors shall be made by such Investors directly to the Escrow Agent and the Escrow
Agent agrees to hold such purchase price in escrow in accordance herewith. Subject to the terms
and conditions hereof and of the Subscription Terms and the Escrow Agreement, the Escrow Agent
shall, on the Closing Date, deliver to the Company, by Federal Funds wire transfer, the aggregate
purchase price so held by such person in escrow, reduced by an amount equal to the sum of the
aggregate Placement Fee payable to the Placement Agents and the Placement Agents’ bona fide
estimate of the amount, if any, of expenses for which the Placement Agents are entitled to
reimbursement pursuant hereto. Thereafter, the Escrow Agent’s obligations with respect to the
escrow of the purchase price so held by it shall cease. The Company and the Placement Agents hereby
agree to deliver to the Escrow Agent a Closing Notice in the form attached as Exhibit C to the
Escrow Agreement at least one day prior to the Closing Date. Electronic transfer of the Shares
through the facilities of The Depository Trust Company’s DWAC system shall be made on the Closing
Date in such names and in such denominations as the Placement Agents shall specify.

          (d) Payment of the purchase price for, and delivery of, the Shares shall be made at a closing
(the “Closing”) at the offices of Arnold & Porter LLP, counsel for the Company, located at 555
Twelfth Street, N.W., Washington, D.C. 20004, at 10:00 a.m., Eastern Standard Time, on the third or
fourth business day (as permitted under Rule 15c6-1 under the Securities Exchange Act of 1934, as
amended (collectively with the rules and regulations promulgated thereunder, the “Exchange Act”))
after the determination of the public offering price of the Shares (such date of payment and
delivery being herein called the “Closing Date”). All such actions taken at the Closing shall be
deemed to have occurred simultaneously. No Shares which the Company has agreed to sell pursuant to
this Agreement and the Subscription Terms shall be deemed to have been purchased and paid for, or
sold by the Company, until such Shares shall have been delivered to the Investor thereof against
payment therefore by such Investor. If the Company shall default in its obligations to deliver
Shares to an Investor whose offer it has accepted, the Company shall indemnify and hold the
Placement Agents harmless against any loss, claim or damage arising from or as a result of such
default by the Company.

          (e) The Shares shall be registered in such names and in such denominations as the Placement
Agents shall request by written notice to the Company.

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     2. Representations and Warranties of the Company. The Company represents and warrants to the
Placement Agents and the Investors as follows:

          (a) Registration Statement and Prospectus. The Company has prepared and filed with the
Securities and Exchange Commission (the “Commission”) a registration statement on Form S-3 (File
No. 333-129276) under the Securities Act of 1933, as amended, and the rules and regulations (the
“Rules and Regulations”) of the Commission thereunder (collectively, the “Securities Act”), and
such amendments to such registration statement as may have been required to the date of this
Agreement. Such registration statement has been declared effective by the Commission. Such
registration statement, at any given time, including amendments thereto at such time, the exhibits
and any schedules thereto at such time, the documents incorporated by reference therein pursuant to
Item 12 of Form S-3 under the Securities Act at such time and the documents and information
otherwise deemed to be a part thereof or included therein by Rule 430A, 430B or 430C under the
Securities Act or otherwise pursuant to the Securities Act at such time, is herein called the
“Registration Statement.” Any registration statement filed by the Company pursuant to Rule 462(b)
under the Securities Act is called the “Rule 462(b) Registration Statement” and, from and after the
date and time of filing of the Rule 462(b) Registration Statement, the term “Registration
Statement” shall include the Rule 462(b) Registration Statement.

          The Company proposes to file with the Commission pursuant to Rule 424 under the Securities Act
a final prospectus supplement relating to the Shares to a form of prospectus included in the
Registration Statement relating to the Shares in the form heretofore delivered to the Placement
Agents. Such prospectus included in the Registration Statement at the time it was declared
effective by the Commission or in the form in which it has been most recently filed with the
Commission on or prior to the date of this Agreement is hereinafter called the “Base Prospectus.”
Such supplemental form of prospectus, in the form in which it shall be filed with the Commission
pursuant to Rule 424(b)(including the Base Prospectus as so supplemented) is hereinafter called the
“Prospectus.” Any preliminary form of Prospectus which is filed or used prior to filing of the
Prospectus is hereinafter called a “Preliminary Prospectus.” Any reference herein to the Base
Prospectus, any Preliminary Prospectus or the Prospectus or to any amendment or supplement to any
of the foregoing shall be deemed to refer to and include any documents incorporated by reference
therein pursuant to Item 12 of Form S-3 under the Securities Act as of the date of such prospectus,
and, in the case of any reference herein to the Prospectus, also shall be deemed to include any
documents incorporated by reference therein, and any supplements or amendments thereto, filed with
the Commission after the date of filing of the Prospectus under Rule 424(b) under the Securities
Act, and prior to the termination of the offering of the Shares by the Placement Agents.

          For purposes of this Agreement, all references to the Registration Statement, the Rule 462(b)
Registration Statement, the Base Prospectus, any Preliminary Prospectus, the Prospectus or any
amendment or supplement to any of the foregoing shall be deemed to include the copy filed with the
Commission pursuant to its Electronic Data Gathering, Analysis and Retrieval System (“EDGAR”).
Any reference to any Preliminary Prospectus or the Prospectus shall be deemed to refer to and
include any documents incorporated by reference therein pursuant to Form S-3 under the Securities
Act as of the date of such Preliminary Prospectus or the Prospectus, as applicable. Any reference
to any amendment or supplement to any Preliminary Prospectus or the Prospectus shall be deemed to
refer to and include any document filed under the Exchange Act, after the date of such Preliminary
Prospectus or the Prospectus, as applicable, and before the date of such amendment or supplement
and incorporated by reference in such Preliminary Prospectus or the Prospectus, as applicable; and
any reference to any amendment to the Registration Statement shall be deemed to include any annual
report of the Company on Form 10-K filed with the Commission pursuant to Section 13(a) or 15(d) of
the Exchange Act after the Effective Date and before the date of such amendment that is
incorporated by reference in the Registration Statement.

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          The Company and the transactions contemplated by this Agreement meet the requirements and
comply with the conditions for the use of Form S-3 under the Securities Act. The offering of the
Shares by the Company complies with the applicable requirements of Rule 415 under the Securities
Act. The Company has complied with all requests of the Commission for additional or supplemental
information. The Registration Statement has become effective under the Securities Act. No stop
order preventing or suspending use of the Registration Statement, any Preliminary Prospectus or the
Prospectus or the effectiveness of the Registration Statement, has been issued by the Commission,
and no proceedings for such purpose have been instituted or are pending or, to the Company’s
knowledge, are contemplated or threatened by the Commission.

          (b) Compliance with Registration Requirements. Each part of the Registration Statement and
any post-effective amendment thereto, at the time such part became effective (including each deemed
effective date with respect to the Placement Agents pursuant to Rule 430B under the Securities Act)
and as of the Closing Date, complied and will comply as to form, in all material respects, with the
requirements of the Securities Act, the Rules and Regulations and the Exchange Act and did not and
will not contain any untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein not misleading. The Prospectus (or
any amendment or supplement to the Prospectus), at the time of filing or the time of first use
within the meaning of the Rules and Regulations and as of the Closing Date, complied and will
comply as to form, in all material respects, with the requirements of the Securities Act, the Rules
and Regulations and the Exchange Act and did not and will not contain an untrue statement of a
material fact or omit to state a material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading; provided, that the
Company makes no representations or warranty in this paragraph with respect to any Placement Agents
Information (as defined in Section 7).

          (c) Disclosure Package. As of the Time of Sale (as hereinafter defined) and as of the Closing
Date, neither (A) any Issuer General Free Writing Prospectus(es) (as defined below) issued at or
prior to the Time of Sale, the Statutory Prospectus (as hereinafter defined) and the information
included on Exhibit G hereto (which information the Placement Agents hereby agree to convey
orally to prospective purchasers at or prior to confirming sales of the shares in the offering),
all considered together (collectively, the “Disclosure Package”), nor (B) any individual Issuer
Limited-Use Free Writing Prospectus (as hereinafter defined), when considered together with the
Disclosure Package, included or will include any untrue statement of a material fact or omitted or
will omit to state any material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading; provided, that the Company
makes no representations or warranty in this paragraph with respect to any Placement Agents
Information. No statement of material fact included in the Prospectus has been omitted from the
Disclosure Package and no statement of material fact included in the Disclosure Package that is
required to be included in the Prospectus has been omitted therefrom. As used in this paragraph and
elsewhere in this Agreement:

     (1) “Time of Sale” with respect to any Investor, means 5:00 p.m. Eastern
Standard Time on the date of this Agreement.

     (2) “Statutory Prospectus” as of any time means the prospectus (including any
preliminary prospectus) that is included in the Registration Statement immediately
prior to the Time of Sale, including any document incorporated by reference therein.

     (3) “Issuer Free Writing Prospectus” means any “issuer free writing
prospectus,” as defined in Rule 433 under the Securities Act (“Rule 433”), relating
to the Shares in the form filed or required to be filed with the Commission or, if
not required to be

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filed, in the form retained in the Company’s records pursuant to Rule 433(g) under
the Securities Act.

     (4) “Issuer General Free Writing Prospectus” means any Issuer Free Writing
Prospectus that is intended for general distribution to prospective investors as
identified on Schedule I hereto, and does not include a “bona fide
electronic road show” as defined in Rule 433.

     (5) “Issuer Limited-Use Free Writing Prospectus” means any Issuer Free Writing
Prospectus that is not an Issuer General Free Writing Prospectus, including any
“bona fide electronic road show” as defined in Rule 433, that is made available
without restriction pursuant to Rule 433(d)(8)(ii), even though not required to be
filed with the Commission.

          (d) Conflict with Registration Statement. Each Issuer Free Writing Prospectus, as of its
issue date and at all subsequent times through the completion of the offering and sale of the
Shares or until any earlier date that the Company notified or notifies the Placement Agents, did
not, does not and will not include any information that conflicted, conflicts or will conflict in
any material respect with the information contained in the Registration Statement, any Statutory
Prospectus or the Prospectus including any document incorporated by reference therein and any
prospectus supplement deemed to be a part thereof that has not been superseded or modified;
provided, that the Company makes no representations or warranty in this paragraph with respect to
any Placement Agents Information.

          (e) Distributed Materials. The Company has not, directly or indirectly, distributed and will
not distribute any prospectus or other offering material in connection with the offering and sale
of the Shares other than any Preliminary Prospectus, the Disclosure Package or the Prospectus, and
other materials, if any, permitted under the Securities Act to be distributed and consistent with
Section 4(d) below. The Company will file with the Commission all Issuer Free Writing
Prospectuses required to be filed in the time required under Rule 433(d) under the Securities Act.
The Company has satisfied or will satisfy the conditions in Rule 433 under the Securities Act to
avoid a requirement to file with the Commission any electronic road show. The parties hereto agree
and understand that the content of any and all “road shows” related to the offering of the Shares
contemplated hereby is solely the property of the Company.

          (f) Not an Ineligible Issuer. (1) At the earliest time after the filing of the Registration
Statement that the Company or another offering participant made a bona fide offer (within the
meaning of Rule 164(h)(2) under the Securities Act) of the Shares and (2) at the date hereof, the
Company was not and is not an “ineligible issuer,” as defined in Rule 405 under the Securities Act,
without taking account of any determination by the Commission pursuant to Rule 405 that it is not
necessary that the Company be considered an ineligible issuer, including, without limitation, for
purposes of Rules 164 and 433 under the Securities Act with respect to the offering of the Shares
as contemplated by the Registration Statement.

          (g) Incorporated Documents. The documents incorporated by reference in the Disclosure Package
and in the Prospectus, when they became effective or were filed with the Commission, as the case
may be, complied as to form in all material respects to the requirements of the Securities Act or
the Exchange Act, as applicable, and were filed on a timely basis with the Commission and none of
such documents contained an untrue statement of a material fact or omitted to state a material fact
necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading.

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          (h) Due Incorporation. The Company has been duly incorporated and is validly existing as a
corporation in good standing under the laws of its jurisdiction of incorporation, with the
corporate power and authority to own its properties and to conduct its business as currently being
carried on and as described in the Registration Statement, the Disclosure Package and the
Prospectus and is duly qualified to transact business as a foreign corporation in good standing
under the laws of each other jurisdiction in which its ownership or leasing of property or the
conduct of its business requires such qualification, except where the failure to be so qualified
and in good standing would not, individually or in the aggregate, result in any material adverse
effect upon, or change in, the general affairs, business, operations, prospects, properties,
financial condition, or results of operations of the Company taken as a whole (a “Material Adverse
Effect”).

          (i) Capitalization. All of the issued and outstanding shares of capital stock of the Company,
including the outstanding shares of Common Stock, have been duly authorized and validly issued and
are fully paid and nonassessable, have been issued in compliance with all federal and state
securities laws, were not issued in violation of or subject to any preemptive rights or other
rights to subscribe for or purchase or acquire any securities of the Company that have not been
waived in writing or otherwise complied with; and the holders thereof are not subject to personal
liability by reason of being such holders.

          (j) The Shares. The Shares have been duly and validly authorized by the Company and, when
issued, delivered and paid for in accordance with the terms of this Agreement and the Subscription
Terms, will have been validly issued and will be fully paid and nonassessable and will not be
subject to any statutory or contractual preemptive rights or other rights to subscribe for or
purchase or acquire any shares of Common Stock of the Company, which have not been waived or
complied with.

          (k) Description of Capital Stock. The capital stock of the Company, including the Common
Stock, conforms as to legal matters to the description thereof, if any, contained in the
Registration Statement, the Statutory Prospectus and the Prospectus, and as of the date thereof,
the Company had authorized capital stock as set forth therein.

          (l) No Registration Rights. Except as otherwise described in the Registration Statement, the
Disclosure Package or the Prospectus, there are no preemptive rights or other rights to subscribe
for or to purchase, or any restriction upon the voting or transfer of, any shares of Common Stock
pursuant to the Company’s charter, by-laws or any agreement or other instrument to which the
Company is a party or by which the Company is bound (other than rights which have been waived in
writing in connection with the transactions contemplated by this Agreement or that have been
otherwise satisfied within the time or times required under the terms and conditions of any such
right). Except as otherwise described in the Registration Statement, the Disclosure Package or the
Prospectus, there are no contracts, agreements or understandings between the Company and any person
granting such person the right to require the Company to file a registration statement under the
Securities Act with respect to any securities of the Company owned or to be owned by such person or
to require the Company to include such securities in the securities registered pursuant to the
Registration Statement or in any securities being registered pursuant to any other registration
statement filed by the Company under the Securities Act (other than rights which have been waived
in writing in connection with the transactions contemplated by this Agreement or otherwise
satisfied).

          (m) Subsidiaries. The Company has no significant subsidiaries (as such term is defined in Rule
1-02(w) of Regulation S-X promulgated by the Commission) other than those sect forth on
Schedule III hereto.

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          (n) Due Authorization and Enforceability. Each of this Agreement and the Subscription Terms
has been duly authorized, executed and delivered by the Company, and constitutes a valid, legal and
binding obligation of the Company, enforceable against the Company in accordance with its terms,
except as rights to indemnity hereunder may be limited by federal or state securities laws and
except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization
or similar laws affecting the rights of creditors generally and subject to general principles of
equity.

          (o) No Conflict. The execution, delivery and performance by the Company of this Agreement and
the Subscription Terms and the consummation of the transactions herein contemplated, including the
issuance and sale by the Company of the Shares, will not conflict with or result in a breach or
violation of, or constitute a default under (nor constitute any event which with notice, lapse of
time or both would result in any breach or violation of or constitute a default under) (i) the
provisions of the charter or by-laws of the Company, (ii) any material indenture, mortgage, deed of
trust, bank loan or credit agreement or other evidence of indebtedness, or any license, lease,
contract or other agreement or instrument to which the Company is a party or by which it or any of
its properties may be bound or affected, or (iii) any federal, state, local or foreign law,
regulation or rule or any decree, judgment or order applicable to the Company.

          (p) No Consents Required. No approval, authorization, consent or order of or filing with any
federal, state, local or foreign governmental or regulatory commission, board, body, authority or
agency, or of or with any self-regulatory organization or other non-governmental regulatory
authority or approval of the stockholders of the Company, is required in connection with the
issuance and sale of the Shares or the consummation by the Company of the transactions contemplated
hereby other than (i) as may be required under the Securities Act, (ii) any necessary qualification
of the Shares under the securities or blue sky laws of the various jurisdictions in which the
Shares are being offered by the Placement Agents and (iii) under the listing standards, policies
and requirements of The NASDAQ Global Market (“NASDAQ”), (iv) under the rules and regulations of
the National Association of Securities Dealers, Inc. (“NASD”). The Company has full power and
authority to enter into this Agreement and the Subscription Terms and to authorize, issue and sell
the Shares as contemplated by this Agreement and the Subscription Terms.

          (q) No Violation. The Company is not in breach or violation of or in default (nor has any
event occurred which with notice, lapse of time or both would result in any breach or violation of,
or constitute a default) (i) under the provisions of its charter or bylaws or (ii) in the
performance or observance of any term, covenant, obligation, agreement or condition contained in
any indenture, mortgage, deed of trust, bank loan or credit agreement or other evidence of
indebtedness, or any license, lease, contract or other agreement or instrument to which the Company
is a party or by which it or any of its properties may be bound or affected, or (iii) in the
performance or observance of any statute, law, rule, regulation, ordinance, 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 properties, as applicable (including,
without limitation, those administered by the Food and Drug Administration of the U.S. Department
of Health and Human Services (the “FDA”) or by any foreign, federal, state or local governmental or
regulatory authority performing functions similar to those performed by the FDA), except, with
respect to clauses (ii) and (iii) above, to the extent any such contravention has been waived or
would not result in a Material Adverse Effect.

          (r) Absence of Material Changes. Subsequent to the respective dates as of which information
is given in the Disclosure Package (and taking into account any update included within the
Disclosure Package), (i) the Company has not sustained any loss or interference with its business
from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any
labor dispute or court or governmental action, order or decree, (ii) the Company has not incurred
any material liability or

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obligation, direct or contingent, or entered into any material transaction not in the ordinary
course of business; (iii) the Company has not purchased any of the Company’s outstanding capital
stock, or declared, paid or otherwise made any dividend or distribution of any kind on the
Company’s capital stock; and (iv) there has not been any change in the capital stock (other than a
change in the number of outstanding shares of Common Stock due to the issuance of shares upon the
exercise of outstanding options or warrants or the conversion of convertible securities or
indebtedness), or material change in the short-term debt or long-term debt of the Company (other
than upon conversion of convertible indebtedness) or any issue of options, warrants, convertible
securities or other rights to purchase the capital stock (other than grants of stock options under
the Company’s stock option plans existing on the date hereof) of the Company, or any Material
Adverse Effect.

          (s) Permits. The Company possesses, and is operating in compliance in all respects with, all
necessary franchises, licenses, grants, permits, easements, authorizations, consents, certificates
and orders of any governmental or self-regulatory body required for the conduct of its business and
all such franchises, licenses, grants, permits, easements, authorizations, consents, certificates
and orders are valid and in full force and effect, except where such noncompliance, violation or
default would not, individually or in the aggregate, have a Material Adverse Effect. The Company
has made all necessary filings required under any federal, state, local or foreign law, regulation
or rule (including, without limitation, those from the FDA, and any other foreign, federal, state
or local government or regulatory authorities performing functions similar to those performed by
the FDA), in order to conduct its business, except where such the failure to make such filing would
not, individually or in the aggregate, have a Material Adverse Effect. The Company has not
received notice of any proceedings relating to revocation or modification of, any such franchise,
license, grant, permit, easement, authorization, consent, certificate and order except where such
violation, default or proceeding would not, individually or in the aggregate, have a Material
Adverse Effect.

          (t) Legal Proceedings. There are no legal or governmental proceedings pending or, to the
Company’s knowledge, threatened or contemplated to which the Company is or would be a party or of
which any of its properties is or would be subject at law or in equity, before or by any federal,
state, local or foreign governmental or regulatory commission, board, body, authority or agency, or
before or by any self-regulatory organization or other non-governmental regulatory authority
(including, without limitation, NASDAQ), except (i) as described in the Registration Statement, the
Prospectus or the Disclosure Package, (ii) any such proceeding, which if resolved adversely to the
Company, would not result in a judgment, decree or order having, individually or in the aggregate,
a Material Adverse Effect or (iii) any such proceeding that would not prevent or materially and
adversely affect the ability of the Company to consummate the transactions contemplated hereby. The
Disclosure Package contains in all material respects the same description of the foregoing matters
contained in the Prospectus.

          (u) Material Contracts. There are no material contracts or other documents of the Company
which are required to be described in the Registration Statement, the Disclosure Package or the
Prospectus or filed as exhibits to the Registration Statement by the Securities Act or by the Rules
and Regulations which have not been so described or filed.

          (v) Good Title to Property. The Company has good and valid title to all property (whether
real or personal) described in the Registration Statement, the Disclosure Package and the
Prospectus as being owned by it, in each case free and clear of all liens, claims, security
interests, other encumbrances or defects except such as are described in the Registration
Statement, the Disclosure Package or the Prospectus and those that would not, individually or in
the aggregate materially affect the value of such property and do not materially interfere with the
use made and proposed to be made of such property by the Company. All of the property described in
the Registration Statement, the Disclosure Package and the Prospectus as being held under lease by
the Company is held thereby under valid,

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subsisting and enforceable leases, without any liens, restrictions, encumbrances or claims,
except those that, individually or in the aggregate, are not material and do not materially
interfere with the use made and proposed to be made of such property by the Company.

          (w) Intellectual Property Rights. The Company owns, or has obtained valid and enforceable
licenses for, or other rights to use, the inventions, patent applications, patents, trademarks
(both registered and unregistered), tradenames, copyrights, trade secrets and other proprietary
information described in the Registration Statement, the Disclosure Package and the Prospectus as
being owned or licensed by it or which are necessary for the conduct of its business, except where
the failure to own, license or have such rights would not, individually or in the aggregate, result
in a Material Adverse Effect (collectively, “Intellectual Property”); except as described in the
Registration Statement, the Disclosure Package and the Prospectus (i) there are no third parties
who have or, to the Company’s knowledge, will be able to establish rights to any Intellectual
Property, except for the ownership rights of the owners of the Intellectual Property which is
licensed to the Company; (ii) to the Company’s knowledge, there is no infringement by third parties
of any Intellectual Property; (iii) there is no pending or, to the Company’s knowledge, threatened
action, suit, proceeding or claim by others challenging the Company’s rights in or to, or the
validity, enforceability, or scope of, any Intellectual Property owned by or licensed to the
Company, and the Company is unaware of any facts which could form a reasonable basis for any such
claim; (iv) there is no pending or, to the Company’s knowledge, threatened action, suit, proceeding
or claim by others that the Company infringes or otherwise violates any patent, trademark,
copyright, trade secret or other proprietary rights of others, and the Company is unaware of any
facts which could form a reasonable basis for any such claim; (v) to the Company’s knowledge, there
is no patent or patent application that contains claims that interfere with the issued or pending
claims of any of the Intellectual Property; and (vi) to the Company’s knowledge, there is no prior
art that may render any patent owned by the Company invalid, nor is there any prior art known to
the Company that may render any patent application owned by the Company unpatentable.

          (x) Financial Statements. The financial statements of the Company, together with the related
schedules and notes thereto, set forth or incorporated by reference in the Registration Statement,
the Disclosure Package and the Prospectus comply in all material respects with the applicable
requirements of the Securities Act and the Exchange Act, as applicable, and present fairly in all
material respects (i) the financial condition of the Company, taken as a whole, as of the dates
indicated and (ii) the consolidated results of operations, shareholders’ equity and changes in cash
flows of the Company, taken as a whole, for the periods therein specified; and such financial
statements and related schedules and notes thereto have been prepared in conformity with United
States generally accepted accounting principles, consistently applied throughout the periods
involved (except as otherwise stated therein and subject, in the case of unaudited financial
statements, to the absence of footnotes and normal year-end adjustments). There are no other
financial statements (historical or pro forma) that are required to be included in the Registration
Statement, the Disclosure Package and the Prospectus; and the Company does not have any material
liabilities or obligations, direct or contingent (including any off-balance sheet obligations), not
disclosed in the Registration Statement, the Disclosure Package and the Prospectus; and all
disclosures contained in the Registration Statement, the Disclosure Package and the Prospectus
regarding “non-GAAP financial measures” (as such term is defined by the rules and regulations of
the Commission) comply with Regulation G of the Exchange Act and Item 10(e) of Regulation S-K of
the Commission, to the extent applicable, and present fairly the information shown therein and the
Company’s basis for using such measures.

          (y) Independent Accountants. To the Company’s knowledge, Ernst & Young LLP, who have
certified certain of the financial statements of the Company, is (i) an independent public
accounting firm within the meaning of the Securities Act and the Rules and Regulations, (ii) a
registered public accounting firm (as defined in Section 2(a)(12) of the Sarbanes-Oxley Act of 2002
(the “Sarbanes-

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Oxley Act”)), and (iii) not in violation of the auditor independence requirements of the
Sarbanes-Oxley Act with respect to its representation of the Company.

          (z) Taxes. The Company has timely filed all federal, state, local and foreign income and
franchise tax returns (or timely filed applicable extensions therefore) that have been required to
be filed and is not in default in the payment of any taxes which were payable pursuant to said
returns or any assessments with respect thereto, other than any which the Company is contesting in
good faith and for which adequate reserves have been provided and reflected in the Company’s
financial statements included in the Registration Statement, the Disclosure Package and the
Prospectus. The Company does not have any tax deficiency that has been or, to the knowledge of the
Company, might be asserted or threatened against it that would result in a Material Adverse Effect.

          (aa) NASDAQ; Exchange Act Registration. The Common Stock is registered pursuant to Section
12(b) or 12(g) of the Exchange Act and is accepted for trading on NASDAQ, and the Company has taken
no action designed to, or likely to have the effect of, terminating the registration of the Common
Stock under the Exchange Act or delisting the Common Stock from NASDAQ, nor has the Company
received any notification that the Commission or the NASD is contemplating terminating such
registration or listing. The Company has complied in all material respects with the applicable
requirements of NASDAQ for maintenance of inclusion of the Common Stock thereon. The Company has
filed an application to include the Shares on NASDAQ.

          (bb) Accounting Controls. The Company maintains a system of internal accounting controls
sufficient to provide reasonable assurances that (i) transactions are executed in accordance with
management’s general or specific authorization; (ii) transactions are recorded as necessary to
permit preparation of financial statements in conformity with generally accepted accounting
principles in the United States of America and to maintain accountability for assets; (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 existing assets at reasonable
intervals and appropriate action is taken with respect to any differences. Except as described in
the Registration Statement, the Disclosure Package or the Prospectus, since the most recent audit
of the effectiveness of the Company’s internal control over financial reporting, there has been (i)
no material weakness in the Company’s internal control over financial reporting (whether or not
remediated) and (ii) no change in the Company’s internal control over financial reporting that has
materially affected, or is reasonably likely to materially affect, the Company’s internal control
over financial reporting.

          (cc) Disclosure Controls. The Company has established, maintains and evaluates “disclosure
controls and procedures” (as such term is defined in Rule 13a-15(e) and 15d-15(e) under the
Exchange Act), which (i) are designed to ensure that material information relating to the Company
is made known to the Company’s principal executive officer and its principal financial officer by
others within the Company, particularly during the periods in which the periodic reports required
under the Exchange Act are being prepared, (ii) have been evaluated for effectiveness as of the end
of the last fiscal period covered by the Registration Statement; and (iii) such disclosure controls
and procedures are effective to perform the functions for which they were established. There are
no significant deficiencies and material weaknesses in the design or operation of internal controls
which could adversely affect the Company’s ability to record, process, summarize, and report
financial data to management and the Board of Directors. The Company is not aware of any fraud,
whether or not material, that involves management or other employees who have a role in the
Company’s internal controls; and since the date of the most recent evaluation of such disclosure
controls and procedures, there have been no significant changes in internal controls or in other
factors that could significantly affect internal controls, including any corrective actions with
regard to significant deficiencies and material weaknesses.

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          (dd) Sarbanes-Oxley Act. The Company is in compliance in all material respects with all
effective provisions of the Sarbanes-Oxley Act and any related rules and regulations promulgated by
the Commission applicable to the business of the Company.

          (ee) Not an Investment Company. The Company is not, nor after giving effect to the offering
and sale of the Shares and the application of the proceeds thereof as described in the Prospectus,
will be, (i) required to register as an “investment company” as defined in the Investment Company
Act of 1940, as amended (the “ Investment Company Act ”), and the rules and regulations of the
Commission thereunder or (ii) a “business development company” (as defined in Section 2(a)(48) of
the Investment Company Act).

          (ff) Insurance. The Company maintains insurance in such amounts and covering such risks as is
reasonably considered to be adequate for the conduct of its business and the value of its
properties and as is customary for companies engaged in similar businesses in similar industries.
All such insurance is fully in force on the date hereof and will be fully in force as of the
Closing Date. The Company has no 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.

          (gg) Brokers Fees. The Company is not a party to any contract, agreement or understanding
with any person that would give rise to a valid claim against the Company or the Placement Agents
for a brokerage commission, finder’s fee or other like payment in connection with the offering and
sale of the Shares, other than this Agreement.

          (hh) Integration. The Company has not sold or issued any securities that would be integrated
with the offering of the Shares contemplated by this Agreement pursuant to the Securities Act, the
Rules and Regulations or the interpretations thereof by the Commission.

          (ii) Corrupt Practices. Neither the Company nor, to the Company’s knowledge, any other person
associated with or acting on behalf of the Company, including without limitation any director,
officer, agent or employee of the Company has, directly or indirectly, while acting on behalf of
the Company (i) used any corporate funds for unlawful contributions, gifts, entertainment or other
unlawful expenses relating to political activity, (ii) made any unlawful payment to foreign or
domestic government officials or employees or to foreign or domestic political parties or campaigns
from corporate funds, (iii) violated any provision of the Foreign Corrupt Practices Act of 1977, as
amended or (iv) made any other unlawful payment.

          (jj) No Price Stabilization. Neither the Company nor, to the Company’s knowledge, any of its
officers, directors, affiliates or controlling persons has taken or will take, directly or
indirectly, any action designed to cause or result in, or which has constituted or which might
reasonably be expected to constitute, the stabilization or manipulation of the price of any
security of the Company to facilitate the sale of the Shares.

          (kk) No Undisclosed Relationships. No material relationship, direct or indirect, exists
between or among the Company on the one hand and the directors, officers, or more than five percent
stockholders of the Company on the other hand which is required to be described in the Registration
Statement, the Disclosure Package and the Prospectus which has not been so described.

          (ll) Exchange Act Requirements. The Company has filed in a timely manner all reports required
to be filed pursuant to Sections 13(a), 13(e), 14 and 15(d) of the Exchange Act during the
preceding 12 months (except to the extent that Section 15(d) requires reports to be filed pursuant
to Sections 13(d) and 13(g) of the Exchange Act, which shall be governed by the next clause of this
sentence); and the Company has filed in a timely manner all reports required to be filed pursuant
to

-11-

 

Sections 13(d) and 13(g) of the Exchange Act since January 1, 2005, except where the failure
to timely file could not reasonably be expected individually or in the aggregate to have a Material
Adverse Effect.

          (mm) NASD Affiliations. To the Company’s knowledge, there are no affiliations or associations
between (i) any member of the NASD and (ii) the Company or any of the Company’s officers or
directors, except as set forth in the Registration Statement, the Disclosure Package and the
Prospectus.

          (nn) Compliance with Environmental Laws. The Company (i) is in compliance with any and all
applicable foreign, federal, state and local laws, orders, rules, regulations, directives, decrees
and judgments relating to the protection of human health and safety, the environment or hazardous
or toxic substances or wastes, pollutants or contaminants (“Environmental Laws”), (ii) has received
all permits, licenses or other approvals required of it under applicable Environmental Laws to
conduct its business and (iii) is in compliance with all terms and conditions of any such permit,
license or approval, except where such noncompliance with Environmental Laws, failure to receive
required permits, licenses or other approvals or failure to comply with the terms and conditions of
such permits, licenses or approvals would not, individually or in the aggregate, result in a
Material Adverse Effect. There are no costs or liabilities associated with Environmental Laws
(including, without limitation, any capital or operating expenditures required for clean-up,
closure of properties or compliance with Environmental Laws or any permit, license or approval, any
related constraints on operating activities and any potential liabilities to third parties) which
would, individually or in the aggregate, result in a Material Adverse Effect.

          (oo) No Labor Disputes. The Company is not engaged in any unfair labor practice; except for
matters that would not, individually or in the aggregate, result in a Material Adverse Effect (i)
there is (A) no unfair labor practice complaint pending or, to the Company’s knowledge after due
inquiry, threatened against the Company before the National Labor Relations Board, and no grievance
or arbitration proceeding arising out of or under collective bargaining agreements is pending or
threatened, (B) no strike, labor dispute, slowdown or stoppage pending or, to the Company’s
knowledge after due inquiry, threatened against the Company and (C) no union representation dispute
currently existing concerning the employees of the Company, and (ii) to the Company’s knowledge (A)
no union organizing activities are currently taking place concerning the employees of the Company
and (B) there has been no violation of any federal, state, local or foreign law relating to
discrimination in the hiring, promotion or pay of employees or any applicable wage or hour laws
concerning the employees of the Company.

          (pp) Statistical or Market-Related Data. Any statistical, industry-related and market-related
data included or incorporated by reference in the Registration Statement, the Disclosure Package
and the Prospectus, are based on or derived from sources that the Company reasonably and in good
faith believes to be reliable and accurate, and such data agree with the sources from which they
are derived.

          (qq) NASD Review. To enable the Placement Agents to rely on Rule 2710(b)(7)(C)(i) of the
NASD, the Company represents that the Company (i) has a non-affiliate, public common equity float
of at least $150 million or a non-affiliate, public common equity float of at least $100 million
and annual trading volume of at least three million shares and (ii) has been subject to the
Exchange Act reporting requirements for a period of at least 36 months.

          (rr) Clinical Studies. The clinical, pre-clinical and other studies and tests conducted by or
on behalf of or sponsored by the Company or in which the Company or products or product candidates
have participated that are described in the Registration Statement, the Disclosure Package and the
Prospectus were and, if still pending, are, to the Company’s knowledge, being conducted in

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accordance in all material respects with all statutes, laws, rules and regulations, as
applicable (including, without limitation, those administered by the FDA or by any foreign,
federal, state or local governmental or regulatory authority performing functions similar to those
performed by the FDA) and with standard medical and scientific research procedures. The
descriptions in the Registration Statement, the Disclosure Package and the Prospectus of the
results of such studies and tests are accurate and complete in all material respects and fairly
present the published data derived from such studies and tests. The Company has not received any
notices or other correspondence from the FDA or any other foreign, federal, state or local
governmental or regulatory authority performing functions similar to those performed by the FDA
with respect to any ongoing clinical or pre-clinical studies or tests requiring the termination,
suspension or material modification of such studies or tests, which such termination, suspension or
material modification would reasonably be expected to result in a Material Adverse Effect. The
Company is in compliance with all applicable federal, state, local and foreign laws, regulations,
orders and decrees governing its business as prescribed by the FDA, or any other federal, state or
foreign agencies or bodies, including those bodies and agencies engaged in the regulation of
pharmaceuticals or biohazardous substances or materials, except where noncompliance would not,
singly or in the aggregate, result in a Material Adverse Effect.

     Any certificate signed by any officer of the Company and delivered to the Placement Agents or
to counsel for the Placement Agents in connection with the offering of the Shares shall be deemed a
representation and warranty by the Company to the Placement Agents and the Investors as to the
matters covered thereby.

     3. Covenants. The Company covenants and agrees with the Placement Agents as follows:

          (a) Reporting Obligations; Exchange Act Compliance. The Company will (i) file any Preliminary
Prospectus and the Prospectus with the Commission within the time periods specified by Rule 424(b)
and Rules 430A and 430B, as applicable under the Securities Act, (ii) file any Issuer Free Writing
Prospectus to the extent required by Rule 433 under the Securities Act, if applicable, (iii) file
timely all reports and any definitive proxy or information statements required to be filed by the
Company with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act
subsequent to the date of the Prospectus and during such period as the Prospectus would be required
by law to be delivered (whether physically or through compliance with Rule 172 under the
Securities Act or any similar rule) (the “Prospectus Delivery Period”), and (iv) furnish copies of
each Issuer Free Writing Prospectus, if any, (to the extent not previously delivered) to the
Placement Agents prior to 10:00 a.m., Eastern Standard Time, on the second business day next
succeeding the date of this Agreement in such quantities as the Placement Agents shall reasonably
request.

          (b) Abbreviated Registration Statement. If the Company elects to rely upon Rule 462(b) under
the Securities Act, the Company shall file a registration statement under Rule 462(b) with the
Commission in compliance with Rule 462(b) by 8:00 a.m., Eastern Standard Time, on the business day
next succeeding the date of this Agreement, and the Company shall at the time of filing either pay
to the Commission the filing fee for such Rule 462(b) registration statement or give irrevocable
instructions for the payment of such fee pursuant to the Rules and Regulations.

          (c) Amendments or Supplements. The Company will not, during the Prospectus Delivery Period,
file any amendment or supplement to the Registration Statement or the Prospectus unless a copy
thereof shall first have been submitted to the Placement Agents within a reasonable period of time
prior to the filing thereof and the Representative shall not have reasonably objected thereto in
good faith.

-13-

 

          (d) Issuer Free Writing Prospectuses. The Company will (i) not make any offer relating to the
Shares that would constitute an “issuer free writing prospectus” (as defined in Rule 433) or that
would otherwise constitute a “free writing prospectus” (as defined in Rule 405 under the Securities
Act) required to be filed by the Company with the Commission under Rule 433 under the Securities
Act unless the Representative approves its use in writing prior to first use (each, a “Permitted
Free Writing Prospectus”); provided that the prior written consent of the Representative hereto
shall be deemed to have been given in respect of the Issuer Free Writing Prospectus(es) included in
Schedule II hereto, (ii) treat each Permitted Free Writing Prospectus as an Issuer Free
Writing Prospectus, (iii) comply with the requirements of Rules 164 and 433 under the Securities
Act applicable to any Issuer Free Writing Prospectus, including the requirements relating to timely
filing with the Commission, legending and record keeping and (iv) not take any action that would
result in a Placement Agent or the Company being required to file with the Commission pursuant to
Rule 433(d) under the Securities Act a free writing prospectus prepared by or on behalf of such
Placement Agents that such Placement Agents otherwise would not have been required to file
thereunder. The Company will satisfy the conditions in Rule 433 under the Securities Act to avoid a
requirement to file with the Commission any electronic road show.

          (e) Notice to Placement Agents. The Company will notify the Placement Agents promptly, and
will, if requested, confirm such notification in writing: (i) of the receipt of any comments of, or
requests for additional or supplemental information from, the Commission; (ii) of the time and date
of any filing of any post-effective amendment to the Registration Statement or any amendment or
supplement to the Disclosure Package or the Prospectus; (iii) the time and date when any
post-effective amendment to the Registration Statement becomes effective, but only during the
Prospectus Delivery Period; (iv) of the issuance by the Commission of any stop order suspending the
effectiveness of the Registration Statement, or any post-effective amendment thereto or any order
preventing or suspending the use of the Disclosure Package, the Prospectus or any Issuer Free
Writing Prospectus, or the initiation of any proceedings for that purpose or the threat thereof,
but only during the Prospectus Delivery Period; (v) of receipt by the Company of any notification
with respect to any suspension or the approval of the Shares from any securities exchange upon
which it is listed for trading or included or designated for quotation, or the initiation or
threatening of any proceeding for such purpose. The Company will use its reasonable best efforts
to prevent the issuance or invocation of any such stop order or suspension by the Commission and,
if any such stop order or suspension is so issued or invoked, to obtain as soon as possible the
withdrawal or removal thereof.

          (f) Filing of Amendments or Supplements. If, during the Prospectus Delivery Period, any event
shall occur or condition exist as a result of which it is necessary to amend or supplement the
Prospectus (or, if the Prospectus is not yet available to prospective purchasers, the Disclosure
Package) in order to make the statements therein, in the light of the circumstances when the
Prospectus (or, if the Prospectus is not yet available to prospective purchasers, the Disclosure
Package) is delivered to an Investor, not misleading, or if, in the opinion of counsel for the
Placement Agents, it is necessary to amend or supplement the Prospectus (or, if the Prospectus is
not yet available to prospective purchasers, the Disclosure Package) to comply with applicable law,
forthwith to prepare, file with the Commission and furnish, at its own expense, to the Placement
Agents, either amendments or supplements to the Prospectus (or, if the Prospectus is not yet
available to prospective purchasers, the Disclosure Package) so that the statements in the
Prospectus (or, if the Prospectus is not yet available to prospective purchasers, the Disclosure
Package) as so amended or supplemented will not, in the light of the circumstances when the
Prospectus (or, if the Prospectus is not yet available to prospective purchasers, the Disclosure
Package) is delivered to an Investor, be misleading or so that the Prospectus (or, if the
Prospectus is not yet available to prospective purchasers, the Disclosure Package), as amended or
supplemented, will comply with law.

-14-

 

          (g) Conflicting Issuer Free Writing Prospectus. If at any time following issuance of an
Issuer Free Writing Prospectus there occurred or occurs an event or development as a result of
which such Issuer Free Writing Prospectus conflicted or would conflict with the information
contained in the Registration Statement relating to the Shares or included or would include an
untrue statement of a material fact or omitted or would omit to state a material fact necessary in
order to make the statements therein, in the light of the circumstances prevailing at that
subsequent time, not misleading, the Company promptly will notify the Placement Agents and will
promptly amend or supplement, at its own expense, such Issuer Free Writing Prospectus to eliminate
or correct such conflict, untrue statement or omission.

          (h) Delivery of Copies. The Company will deliver promptly to the Placement Agents and their
counsel such number of the following documents as the Placement Agents shall reasonably request:
(i) conformed copies of the Registration Statement as originally filed with the Commission and each
amendment thereto (in each case excluding exhibits), (ii) copies of any Issuer Free Writing
Prospectus, (iii) during the Prospectus Delivery Period, copies of the Prospectus (or any
amendments or supplements thereto); (iii) any document incorporated by reference in the Prospectus
(other than any such document that is filed with the Commission electronically via EDGAR or any
successor system) and (iv) all correspondence to and from, and all documents issued to and by, the
Commission in connection with the registration of the Shares under the Securities Act.

          (i) Blue Sky Laws. The Company will promptly take or cause to be taken, from time to time,
such actions as the Placement Agents may reasonably request to qualify the Shares for offering and
sale under the state securities, or blue sky, laws of such states or other jurisdictions as the
Placement Agents may reasonably request and to maintain such qualifications in effect so long as
the Placement Agents may request for the distribution of the Shares, provided, that in no event
shall the Company be obligated to qualify as a foreign corporation in any jurisdiction in which it
is not so qualified or to file a general consent to service of process in any jurisdiction or
subject itself to taxation as doing business in any jurisdiction. The Company will advise the
Placement Agents promptly of the suspension of the qualification or registration of (or any
exemption relating to) the Shares for offering, sale or trading in any jurisdiction or any
initiation or threat of any proceeding for any such purpose, and in the event of the issuance of
any order suspending such qualification, registration or exemption, the Company shall use its best
efforts to obtain the withdrawal thereof at the earliest possible moment.

          (j) Earnings Statement. As soon as practicable, but in any event not later than 15 months
after the end of the Company’s current fiscal quarter, the Company will make generally available to
holders of its securities and deliver to the Placement Agents, an earnings statement of the Company
(which need not be audited) that will satisfy the provisions of Section 11(a) of the Securities Act
and Rule 158 of the Rules and Regulations.

          (k) Use of Proceeds. The Company will apply the net proceeds from the sale of the Shares in
the manner set forth in the Disclosure Package and the Prospectus under the heading “Use of
Proceeds.”

          (l) Lock-Up Period. Beginning on the date hereof and continuing for a period of 90 days after
the date of this Agreement (the “Lock-Up Period”), the Company will not (i) offer to sell,
hypothecate, pledge, announce the intention to sell, sell, contract to sell, sell any option or
contract to purchase, purchase any option or contract to sell, grant any option, right or warrant
to purchase or otherwise transfer or dispose of, directly or indirectly, or establish or increase a
put equivalent position or liquidate or decrease a call equivalent position within the meaning of
Section 16 of the Exchange Act, with respect to, any shares of Common Stock, any securities
convertible into or exercisable or exchangeable for Common Stock; (ii) file or cause to become
effective a registration statement under the Securities Act relating to the offer and sale of any
shares of Common Stock or securities convertible into

-15-

 

or exercisable or exchangeable for Common Stock (other than on a registration statement on
Form S-8 or any successor form) or (iii) enter into any swap or other agreement that transfers, in
whole or in part, any of the economic consequences of ownership of the Common Stock, whether any
such transaction described in clause (i), (ii) or (iii) above is to be settled by delivery of
Common Stock or such other securities, in cash or otherwise, without the prior written consent of
the Representative (which consent may be withheld in its sole discretion), other than (A) the
Shares to be sold hereunder, (B) the issuance of stock options, shares of common stock and other
awards pursuant to stock option plans described in the Registration Statement (excluding the
exhibits thereto), the Disclosure Package and the Prospectus, (C) issuances of Common Stock upon
the exercise of options or warrants (either upon current terms thereof or upon subsequently amended
terms but excluding a general repricing) disclosed as outstanding in the Registration Statement
(excluding the exhibits thereto), the Disclosure Package or the Prospectus or upon the conversion
or exchange of convertible or exchangeable securities outstanding as of the date of this Agreement;
(D) the issuance by the Company of any shares of Common Stock as consideration for mergers,
acquisitions, other business combinations, or strategic alliances, occurring after the date of this
Agreement; provided that each recipient of shares pursuant to this clause (D) agrees that all such
shares remain subject to restrictions substantially similar to those contained in this Section
3(l); or (E) the purchase or sale of the Company’s securities pursuant to a plan, contract or
instruction that satisfies all of the requirements of Rule 10b5-1(c)(1)(i)(B) that was in effect
prior to the date of this Agreement. Notwithstanding the foregoing, for the purpose of allowing
the Placement Agents to comply with NASD Rule 2711(f)(4), if (1) during the last 17 days of the
Lock-Up Period, the Company releases earnings results or publicly announces other material news or
a material event relating to the Company occurs or (2) prior to the expiration of the Lock-Up
Period, the Company announces that it will release earnings results during the 16 day period
beginning on the last day of the Lock-Up Period, then in each case the Lock-Up Period will be
extended until the expiration of the 18 day period beginning on the date of release of the earnings
results or the public announcement regarding the material news or the occurrence of the material
event, as applicable, unless the Representative waives, in writing, such extension. The Company
agrees not to accelerate the vesting of any option or warrant or the lapse of any repurchase right
prior to the expiration of the Lock-Up Period other than pursuant to contractual obligations in
effect prior to the date of this Agreement. Notwithstanding the foregoing, during the Lock-Up
Period, the Company may issue shares of Common Stock in connection with one or more acquisitions by
the Company, provided in each case that each recipient of such shares of Common Stock executes an
agreement reasonably satisfactory to the Representative to be subject to the foregoing restrictions
in respect of such shares of Common Stock for the duration of the Lock-Up Period.

          (m) Lock-Up Agreements. The Company will cause each of its executive officers and directors
whose names are set forth on Exhibit C hereto to furnish to the Placement Agents, on and
effective as of the date of this Agreement, a letter, substantially in the form of Exhibit
B hereto (the “Lock-Up Agreement”). The Company will use its reasonable best efforts to
enforce the terms of each Lock-Up Agreement and will issue stop transfer instructions to the
transfer agent for the Common Stock with respect to any transaction or contemplated transaction
that would constitute a breach or default under the applicable Lock-Up Agreement.

          (n) Public Communications. Prior to the Closing Date, the Company will not issue any press
release or other communication directly or indirectly or hold any press conference with respect to
the Company, its condition, financial or otherwise, or its earnings, business, operations or
prospects, or the offering of the Shares, without the prior written consent of the Representative,
unless in the reasonable judgment of the Company and its counsel, and after notification to the
Representative, such press release or communication is required by law or by NASDAQ rules, in which
case the Company shall use its reasonable best efforts to allow the Representative reasonable time
to comment on such release or other communication in advance of such issuance.

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          (o) Stabilization. The Company will not take, directly or indirectly, any action designed, or
that might reasonably be expected to cause or result in, or that will constitute, stabilization or
manipulation of the price of any security of the Company to facilitate the sale of any of the
Shares.

          (p) Transfer Agent. The Company shall engage and maintain, at its expense, a transfer agent
and, if necessary under the jurisdiction of incorporation of the Company, a registrar for the
Shares.

          (q) Listing. The Company shall use its commercially reasonable efforts to cause the Shares to
be listed for trading on NASDAQ and to maintain such listing.

          (r) Investment Company Act. The Company shall not invest, or otherwise use the proceeds
received by the Company from its sale of the Shares in such a manner as would require the Company
to register as an investment company under the Investment Company Act.

          (s) Sarbanes-Oxley Act. The Company will comply with all effective applicable provisions of
the Sarbanes Oxley Act.

          (t) Broker’s Fee. The Company will not incur any liability for any finder’s or broker’s fee or
agent’s commission in connection with the execution and delivery of this Agreement or the
consummation of the transactions contemplated hereby (other than as set forth in this Agreement).

     4. Costs and Expenses. The Company, whether or not the transactions contemplated hereunder
are consummated or this Agreement is terminated, will pay or reimburse if paid by the Placement
Agents all costs and expenses incident to the performance of the obligations of the Company under
this Agreement and incurred in connection with the transactions contemplated hereby, including but
not limited to costs and expenses of or relating to (i) the preparation, printing, filing, delivery
and shipping of the Registration Statement, any Issuer Free Writing Prospectus, the Disclosure
Package and the Prospectus, and any amendment or supplement to any of the foregoing and the
printing and furnishing of copies of each thereof to the Placement Agents and dealers (including
costs of mailing and shipment), (ii) the registration, issue, sale and delivery of the Shares
including any stock or transfer taxes and stamp or similar duties payable upon the sale, issuance
or delivery of the Shares and the printing, delivery, and shipping of the certificates representing
the Shares, (iii) the registration or qualification of the Shares for offer and sale under the
securities or Blue Sky laws of such jurisdictions designated pursuant to Section 3(i),
(including the reasonable legal fees and filing fees, and other disbursements of counsel to the
Placement Agents in connection therewith), and, if reasonably requested by the Placement Agents,
the preparation and printing and furnishing of copies of any blue sky surveys to the Placement
Agents and to dealers, (iv) the fees and expenses of any transfer agent or registrar for the
Shares, (v) any filings required to be made by the Placement Agents or the Company with the NASD,
and the reasonable fees, disbursements and other charges of counsel for the Placement Agents in
connection with the NASD’s review and approval of the Placement Agents’ participation in the
offering (including all COBRADesk fees), (vi) fees, disbursements and other charges of counsel to
the Company (vii) listing fees, if any, for the listing of the Shares on NASDAQ, (viii) fees and
disbursements of the Company’s auditor incurred in delivering the letter(s) described in
Section 5(i) of this Agreement, (ix) fees, disbursements and other charges of counsel to
the Placement Agents (in addition to (iii) and (v) above) in an amount not to exceed $50,000, and
(x) the costs and expenses of the Company and the Placement Agents in connection with the marketing
of the offering and the sale of the Shares to prospective investors including, but not limited to,
those related to any presentations or meetings undertaken in connection therewith including,
without limitation, expenses associated with the production of road show slides and graphics, fees
and expenses of any consultants engaged with the written consent of the Company in connection with
the road show

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presentations, travel, lodging and other expenses incurred by the officers of the Company and
any such consultants, and the cost of any aircraft or other transportation chartered in connection
with the road show. Notwithstanding the foregoing, in no event shall the Company be obligated to
reimburse the Placement Agents for fees and expenses (other than the fees, disbursements and other
charges of counsel to the Placement Agents pursuant to (ix) above) in excess of $15,000 in the
aggregate. If this Agreement shall be terminated by the Placement Agents pursuant to Section
8 hereof, the Company will, in addition to paying the amounts described in this Section
4, but subject to reasonably acceptable supporting documentation, reimburse the Placement
Agents for all of their reasonable out-of-pocket disbursements (including, but not limited to, the
reasonable fees and disbursements of their counsel) incurred by the Placement Agents in connection
with their investigation, preparing to market and marketing of the Shares or in contemplation of
performing their obligations hereunder.

     5. Conditions of Placement Agents’ Obligations. The obligations of the Placement Agents
hereunder are subject to the following conditions any of which may be waived on behalf of the
Placement Agents by the Representative:

          (a) Filings with the Commission. The Prospectus and any Issuer Free Writing Prospectus
required to be filed under the Securities Act or the Rules and Regulations shall have been filed
with the Commission pursuant to Rule 424(b) or Rule 164, as the case may be, in the manner and
within the time period so required.

          (b) Abbreviated Registration Statement. If the Company has elected to rely upon Rule 462(b),
the registration statement filed under Rule 462(b) shall have become effective under the Securities
Act by 8:00 a.m., Eastern Standard Time, on the business day next succeeding the date of this
Agreement.

          (c) No Stop Orders. Prior to the Closing: (i) no stop order suspending the effectiveness of
the Registration Statement or any part thereof, nor suspending or preventing the use of the
Disclosure Package, the Prospectus or any Issuer Free Writing Prospectus shall have been issued
under the Securities Act and no proceedings initiated under Section 8(d) or 8(e) of the Securities
Act for that purpose shall be pending or threatened by the Commission, (ii) no order suspending the
qualification or registration of the Shares under the securities or blue sky laws of any
jurisdiction shall be in effect and (iii) any request for additional information on the part of the
Commission (to be included in the Registration Statement, the Disclosure Package, the Prospectus or
any Issuer Free Writing Prospectus or otherwise) shall have been complied with to the reasonable
satisfaction of the Representative.

          (d) Action Preventing Issuance. No action shall have been taken and no statute, rule,
regulation or order shall have been enacted, adopted or issued by any governmental agency or body
which would, as of the Closing Date, prevent the issuance or sale of the Shares; and no injunction,
restraining order or order of any other nature by any federal or state court of competent
jurisdiction shall have been issued as of the Closing Date which would prevent the issuance or sale
of the Shares.

          (e) Objection of Placement Agents. No Prospectus or amendment or supplement to the
Registration Statement shall have been filed to which the Representative shall have objected in
writing, which objection shall not be unreasonable. The Placement Agents shall not have advised
the Company that the Registration Statement, the Disclosure Package or the Prospectus, or any
amendment thereof or supplement thereto, or any Issuer Free Writing Prospectus contains an untrue
statement of fact which, in their opinion, is material, or omits to state a fact which, in their
opinion, is material and is required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading.

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          (f) No Material Adverse Change. Prior to the Closing, there shall not have occurred any
change, or any development involving a prospective change, in the condition, financial or
otherwise, or in the earnings, business, operations or prospects of the Company, taken as a whole,
from that set forth in the Disclosure Package and the Prospectus that, in the Representative’s
judgment, is material and adverse and that makes it, in the Representative’s judgment,
impracticable to market the Shares on the terms and in the manner contemplated in the Disclosure
Package.

          (g) Representations and Warranties. Each of the representations and warranties of the Company
contained herein shall be true and correct in all material respects (except for those
representations and warranties which are qualified by materiality, in which case such
representations and warranties shall be true and correct in all respects) when made and on and as
of the Closing Date, as if made on such date (except that those representations and warranties that
address matters only as of a particular date shall remain true and correct in all material respects
(except for those representations and warranties which are qualified by materiality, in which case
such representations and warranties shall be true and correct in all respects) as of such date),
and all covenants and agreements herein contained to be performed on the part of the Company and
all conditions herein contained to be fulfilled or complied with by the Company at or prior to the
Closing Date shall have been duly performed, fulfilled or complied with in all material respects.

          (h) Opinion of Counsel to the Company. The Placement Agents shall have received from (i)
Arnold & Porter LLP, special counsel to the Company, and (ii) King & Spalding LLP, special
intellectual property counsel to the Company, such counsel’s written opinion, addressed to the
Placement Agents and dated the Closing Date, in form and substance as is set forth on Exhibit
D and Exhibit E, respectively, attached hereto. Arnold & Porter LLP shall also have
furnished to the Placement Agents a written statement, addressed to the Placement Agents and dated
the Closing Date, in form and substance as set forth in Exhibit F attached hereto.

          (i) Opinion of Counsel to the Placement Agents. The Placement Agents shall have received from
Lowenstein Sandler PC, such opinion or opinions, dated the Closing Date and addressed to the
Placement Agents, covering such matters as are customarily covered in transactions of this type.

          (j) Accountant’s Comfort Letter. The Placement Agents shall have received on the date of the
Time of Sale, a letter dated the date hereof, (the “Original Letter”), addressed to the Placement
Agents and in form and substance reasonably satisfactory to the Representative and its counsel,
from Ernst & Young LLP, which letter shall cover the various financial disclosures, if any,
contained in the Disclosure Package and shall contain statements and information of the type
customarily included in accountants’ “comfort letters” to underwriters, delivered according to
Statement of Auditing Standards No. 72, with respect to the audited and unaudited financial
statements and certain financial information contained in or incorporated by reference into the
Registration Statement and the Prospectus. At the Closing Date, the Placement Agents shall have
received from Ernst & Young LLP a letter, dated the Closing Date, which shall confirm, on the basis
of a review in accordance with the procedures set forth in the Original Letter, whether anything
has come to their attention during the period from the date of the Original Letter referred to in
the prior sentence to a date (specified in the letter) not more than three days prior to the
Closing Date which would require any change in the Original Letter if it were required to be dated
and delivered at the Closing Date.

          (k) Officer’s Certificate. The Placement Agents shall have received on the Closing Date a
certificate, addressed to the Placement Agents and dated the Closing Date, of the chief executive
or chief operating officer and the chief financial officer or chief accounting officer of the
Company to the effect that:

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               (i) each of the representations, warranties and agreements of the Company in this Agreement
were true and correct in all material respects (except for those representations and warranties
which are qualified by materiality, in which case such representations and warranties shall be true
and correct in all respects) when originally made and are true and correct in all material respects
(except for those representations and warranties which are qualified by materiality, in which case
such representations and warranties shall be true and correct in all respects) as of the Time of
Sale and the Closing Date; and the Company has complied in all material respects with all
agreements and satisfied all the conditions on its part required under this Agreement to be
performed or satisfied at or prior to the Closing Date;

               (ii) subsequent to the respective dates as of which information is given in the Disclosure
Package (taking into account any updates included within the Disclosure Package), there has not
been (A) a material adverse change or any development involving a prospective material adverse
change in the general affairs, business, prospects, properties, management, financial condition or
results of operations of the Company, taken as a whole, (B) any transaction that is material to the
Company, taken as a whole, except transactions entered into in the ordinary course of business, (C)
any obligation, direct or contingent, that is material to the Company, taken as a whole, incurred
by the Company, except obligations incurred in the ordinary course of business, (D) except as
disclosed in the Disclosure Package and the Prospectus, any change in the capital stock (other than
a change in the number of outstanding shares of Common Stock due to the issuance of shares upon the
exercise of outstanding options or warrants) or any material change in the short term or long term
indebtedness of the Company, taken as a whole, (E) any dividend or distribution of any kind
declared, paid or made on the capital stock of the Company or (F) any loss or damage (whether or
not insured) to the property of the Company which has been sustained or will have been sustained
which has had or is reasonably likely to result in a Material Adverse Effect.

               (iii) no stop order suspending the effectiveness of the Registration Statement or any part
thereof or any amendment thereof or the qualification of the Shares for offering or sale, nor
suspending or preventing the use of the Disclosure Package, the Prospectus or any Issuer Free
Writing Prospectus shall have been issued, and no proceedings for that purpose shall be pending or
to their knowledge, threatened by the Commission or any state or regulatory body; and

               (iv) the signers of said certificate have reviewed the Registration Statement, the Disclosure
Package and the Prospectus, and any amendments thereof or supplements thereto (and any documents
filed under the Exchange Act and deemed to be incorporated by reference into the Disclosure Package
and the Prospectus), and (A) (i) each part of the Registration Statement and any amendment thereof
do not and did not contain when the Registration Statement (or such amendment) became effective,
any untrue statement of a material fact or omit to state, and did not omit to state when the
Registration Statement (or such amendment) became effective, any material fact required to be
stated therein or necessary to make the statements therein not misleading, (ii) as of the Time of
Sale, neither the Disclosure Package nor any individual Issuer Free Writing Prospectus, when
considered together with the Disclosure Package, contained any untrue statement of material fact or
omits to state any material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading and (iii) the Prospectus, as amended or
supplemented, does not and did not contain, as of its issue date, any untrue statement of material
fact or omit to state and did not omit to state as of such date, a material fact necessary to make
the statements therein, in light of the circumstances under which they were made, not misleading,
and (B) since the Time of Sale, there has occurred no event required to be set forth in an
amendment or supplement to the Registration Statement, the Disclosure Package or the Prospectus
which has not been so set forth and there has been no document required to be filed under the
Exchange Act that upon such filing would be deemed to be incorporated by reference into the
Disclosure Package and into the Prospectus that has not been so filed.

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          (l) Secretary’s Certificate. On the Closing Date, the Company shall have furnished to the
Placement Agents a Secretary’s Certificate of the Company.

          (m) NASDAQ. The Company shall have filed the proper notice for the listing of additional
shares on NASDAQ.

          (n) Other Filings with the Commission. The Company shall have prepared a Current Report on
Form 8-K with respect to the transactions contemplated hereby, to be filed immediately after the
Closing, including as an exhibit thereto this Agreement and any other documents relating to this
Agreement that are required to be filed therewith.

          (o) Lock-Up Agreements. The Placement Agents shall have received copies of the executed
Lock-Up Agreements executed by each person listed on Exhibit C hereto, and such Lock-Up
Agreements shall be in full force and effect on the Closing Date.

          (p) Additional Documents. Prior to the Closing Date, the Company shall have furnished to the
Placement Agents such further information, certificates or documents as the Placement Agents shall
have reasonably requested for the purpose of enabling it to pass upon the issuance and sale of the
Shares as contemplated herein, or in order to evidence the accuracy of any of the representations
and warranties, or the satisfaction of any of the conditions or agreements, herein contained (it
being understood that the Placement Agents’ customary due diligence has been completed prior to the
execution of this Agreement).

All opinions, letters, evidence and certificates mentioned above or elsewhere in this Agreement
shall be deemed to be in compliance with the provisions hereof only if they are in form and
substance reasonably satisfactory to counsel for the Placement Agents.

     6. Indemnification and Contribution.

          (a) Indemnification of the Placement Agents. The Company agrees to indemnify, defend and hold
harmless the Placement Agents, their directors and officers, and each person, if any, who controls
the Placement Agents within the meaning of either Section 15 of the Securities Act or Section 20 of
the Exchange Act, and the successors and assigns of all of the foregoing persons, from and against
any loss, damage, claim or liability, which, jointly or severally, the Placement Agents or any such
person may become subject under the Securities Act, the Exchange Act, or other federal or state
statutory law or regulation, the common law or otherwise, (including in settlement of any
litigation, if such settlement is effected with the written consent of the Company), insofar as
such loss, damage, claim or liability (or actions in respect thereof as contemplated below) arises
out of or is based upon: (i) any untrue statement or alleged untrue statement of a material fact
contained in the Registration Statement or the omission or alleged omission to state a material
fact required to be stated therein or necessary to make the statements therein not misleading; (ii)
any untrue statement or alleged untrue statement of a material fact contained in the Disclosure
Package, the Prospectus (or any amendment or supplement thereto including any documents filed under
the Exchange Act and deemed to be incorporated by reference into the Prospectus), any Issuer Free
Writing Prospectus, or the omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements made therein, in light of the
circumstances under which they were made, not misleading; and, in the case of (i) and (ii) above,
to reimburse the Placement Agents and each such controlling person for any and all reasonable
expenses (including reasonable fees and disbursements of counsel) as such expenses are incurred by
the Placement Agents or such controlling person in connection with investigating, defending,
settling, compromising or paying any such loss, claim, damage, liability, expense or action, or
(iii) any untrue statement or alleged untrue statement made by the Company in Section 2
hereof or the failure by the Company to perform its

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obligations hereunder or under law in connection with the transactions contained herein;
provided, however, that the foregoing indemnity shall not apply to any loss, claim, damage,
liability or expense to the extent, but only to the extent, it arises out of or is based upon (x)
any untrue statement or alleged untrue statement of a material fact contained in or omitted from
the Registration Statement, the Disclosure Package, the Prospectus, or any such amendment or
supplement, or any Issuer Free Writing Prospectus, in reliance upon and in conformity with
information concerning the Placement Agents furnished in writing by or on behalf of the Placement
Agents to the Company expressly for use therein, which information the parties hereto agree is
limited to the Placement Agents Information or (y) the failure by the Placement Agents to deliver
information furnished by the Company to correct a misstatement or omission in the Registration
Statement, the Disclosure Package, the Prospectus, or any such amendment or supplement or any
Issuer Free Writing Prospectus, provided that such information would have corrected the
misstatement or omission.

          (b) Indemnification of the Company. Each Placement Agent, severally and not jointly, agrees
to indemnify, defend and hold harmless the Company, its directors and officers, and any person, if
any, who controls the Company within the meaning of either Section 15 of the Securities Act or
Section 20 of the Exchange Act, and the successors and assigns of all of the foregoing persons,
from and against any loss, claim, damage, liability or expense, as incurred to which, jointly or
severally, the Company or any such person may become subject under the Securities Act, the Exchange
Act, or other federal or state statutory law or regulation, the common law or otherwise (including
in settlement of any litigation, if such settlement is effected with the written consent of the
Representative), insofar as such loss, claim, damage, liability or expense (or actions in respect
thereof as contemplated below) arises out of or is based upon (i) any untrue statement or alleged
untrue statement of a material fact contained in the Registration Statement, or the omission or
alleged omission to state a material fact required to be stated therein or necessary to make the
statements therein not misleading; (ii) any untrue statement or alleged untrue statement of a
material fact contained in the Disclosure Package, the Prospectus (or any amendment or supplement
thereto) or any Issuer Free Writing Prospectus, or the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the statements made
therein, in light of the circumstances under which they were made, not misleading, and in the case
of each of (i) and (ii) above, to the extent but only to the extent, that such untrue statement or
alleged untrue statement or omission or alleged omission was made in the Registration Statement,
the Disclosure Package or the Prospectus (or any amendment or supplement thereto) or any Issuer
Free Writing Prospectus in reliance upon and in conformity with information concerning the
Placement Agents furnished in writing by or on behalf of the Placement Agents to the Company
expressly for use therein, and to reimburse the Company, or any such director, officer or
controlling person for any legal and other expense reasonably incurred by the Company, or any such
director, officer or controlling person in connection with investigating, defending, settling,
compromising or paying any such loss, claim, damage, liability, expense or action; provided, that
the parties hereto hereby agree that such written information provided by the Placement Agents
consists solely of the Placement Agents Information. Notwithstanding the provisions of this
Section 6(b), in no event shall any indemnity by any Placement Agent under this Section
6(b) exceed the total compensation received by such Placement Agent in accordance with
Section 1(b).

          (c) Notice and Procedures. If any action, suit or proceeding (each, a “Proceeding”) is
brought against a person (an “indemnified party”) in respect of which indemnity may be sought
against the Company or the Placement Agents (as applicable, the “indemnifying party”) pursuant to
subsection (a) or (b), respectively, of this Section 6, such indemnified
party shall promptly notify such indemnifying party in writing of the institution of such
Proceeding and such indemnifying party shall assume the defense of such Proceeding, including the
employment of counsel reasonably satisfactory to such indemnified party and payment of all fees and
expenses; provided, however, that the omission to so notify such indemnifying party shall not
relieve such indemnifying party from any liability which such

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indemnifying party may have to any indemnified party or otherwise, except to the extent the
indemnifying party does not otherwise learn of the Proceeding and such failure results in the
forfeiture by the indemnifying party of substantial rights or defenses. The indemnified party or
parties shall have the right to employ its or their own counsel in any such case, but the fees and
expenses of such counsel shall be at the expense of such indemnified party or parties unless (i)
the employment of such counsel shall have been authorized in writing by the indemnifying party in
connection with the defense of such Proceeding, (ii) the indemnifying party shall not have, within
a reasonable period of time in light of the circumstances, employed counsel to defend such
Proceeding or (iii) such indemnified party or parties shall have reasonably concluded that there
may be defenses available to it or them which are different from, additional to or in conflict with
those available to such indemnifying party (in which case such indemnifying party shall not have
the right to direct the defense of such Proceeding on behalf of the indemnified party or parties
with respect to such defenses), in any of which events such reasonable fees and expenses with
respect to such defenses shall be borne by such indemnifying party and paid as incurred (it being
understood, however, that such indemnifying party shall not be liable for the expenses of more than
one separate counsel (in addition to any local counsel) in any one Proceeding or series of related
Proceedings in the same jurisdiction representing the indemnified parties who are parties to such
Proceeding). An indemnifying party shall not be liable for any settlement of any Proceeding
effected without its written consent but, if settled with its written consent or if there be a
final judgment for the plaintiff, such indemnifying party agrees to indemnify and hold harmless the
indemnified party or parties from and against any loss or liability by reason of such settlement or
judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have
requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel
as contemplated by the second sentence of this Section 6(c), then the indemnifying party
agrees that it shall be liable for any settlement of any Proceeding effected without its written
consent if (i) such settlement is entered into more than 60 days after receipt by such indemnifying
party of the aforesaid request, (ii) such indemnifying party shall not have fully reimbursed the
indemnified party in accordance with such request prior to the date of such settlement all amounts
with respect to which the indemnifying party does not dispute in good faith and (iii) such
indemnified party shall have given the indemnifying party at least 30 days’ prior notice of its
intention to settle. No indemnifying party shall, without the prior written consent of the
indemnified party, effect any settlement, compromise or consent to the entry of judgment in any
pending or threatened Proceeding in respect of which any indemnified party is or could have been a
party and indemnity could have been sought hereunder by such indemnified party, unless such
settlement includes an unconditional release of such indemnified party from all liability on claims
that are the subject matter of such Proceeding and does not include an admission of fault or
culpability or a failure to act by or on behalf of such indemnified party.

          (d) Contribution. If the indemnification provided for in this Section 6 is
unavailable to an indemnified party under subsections (a) or (b) of this
Section 6 or insufficient to hold an indemnified party harmless in respect of any losses,
claims, damages, liabilities or expenses referred to therein, then each applicable indemnifying
party shall, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or
payable by such indemnified party as a result of the losses, claims, damages, liabilities or
expenses referred to in subsection (a) or (b) above, (i) in such proportion as is
appropriate to reflect the relative benefits received by the Company on the one hand and the
Placement Agents on the other from the offering of the Shares or (ii) if the allocation provided by
clause (i) above is not permitted by applicable law, in such proportion as is appropriate to
reflect not only the relative benefits referred to in clause (i) above but also the relative fault
of the indemnifying party or parties on the one hand and the indemnified party or parties on the
other hand in connection with the statements or omissions that resulted in such losses, claims,
damages, liabilities or expenses, as well as any other relevant equitable considerations. The
relative benefits received by the Company on the one hand and the Placement Agents on the other
hand shall be deemed to be in the same respective proportions as the total net proceeds from the
offering of the Shares (before deducting expenses) received by the Company and the total placement
agents commissions

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received by the Placement Agents, in each case as set forth on the cover of the Prospectus,
bear to the aggregate public offering price of the Shares. The relative fault of the Company on
the one hand and the Placement Agents on the other hand shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by the Company, on the
one hand, or by the Placement Agents, on the other hand, and the parties’ relevant intent,
knowledge, access to information and opportunity to correct or prevent such untrue statement or
omission. The Company and the Placement Agents agree that it would not be just and equitable if
contribution pursuant to this subsection (d) were to be determined by pro rata allocation
or by any other method of allocation which does not take account of the equitable considerations
referred to in the first sentence of this Section 6(d). The amount paid or payable by an
indemnified party as a result of the losses, claims, damages or liabilities referred to in the
first sentence of this Section 6(d) shall be deemed to include any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating or defending against
any action or claim which is the subject of this Section 6(d). Notwithstanding the
provisions of this Section 6(d), each Placement Agent shall not be required to contribute
any amount in excess of the total commissions received by such Placement Agent in accordance with
Section 1(b). No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The Placement Agents’ obligations in this Section
6(d) to contribute are several in proportion to the compensation received by each of the
Placement Agents and not joint.

          (e) Representations and Agreements to Survive Delivery. The obligations of the Company under
this Section 6 shall be in addition to any liability which the Company may otherwise have.
The indemnity and contribution agreements contained in this Section 6 and the covenants,
warranties and representations of the Company contained in this Agreement shall remain operative
and in full force and effect regardless of (i) any termination of this Agreement, (ii) any
investigation made by or on behalf of the Placement Agents, any person who controls the Placement
Agents within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange
Act or any affiliate of the Placement Agents, or by or on behalf of the Company, its directors or
officers or any person who controls the Company within the meaning of either Section 15 of the
Securities Act or Section 20 of the Exchange Act, and (iii) the issuance and delivery of the
Shares; provided, however, that the Company’s indemnification obligations set forth in Section
6(a)(iii) shall expire three years after the Closing Date. The Company and the Placement Agents
agree promptly to notify each other of the commencement of any Proceeding against it and, in the
case of the Company, against any of the Company’s officers or directors in connection with the
issuance and sale of the Shares, or in connection with the Registration Statement, the Disclosure
Package or the Prospectus.

     7. Information Furnished by Placement Agents. The Company acknowledges that the statements set
forth in (a) the sixth paragraph and (b) the first sentence of the seventh paragraph under the
heading “Plan of Distribution” in the Statutory Prospectus and the Prospectus (the “Placement
Agents Information”) constitute the only information relating to the Placement Agents furnished in
writing to the Company by the Placement Agents as such information is referred to in Sections
2 and 6 hereof.

     8. Termination. The Representative shall have the right to terminate this Agreement by giving
notice as hereinafter specified at any time at or prior to the Closing Date, without liability on
the part of the Placement Agents to the Company, if (i) prior to delivery and payment for the
Shares (A) trading in securities generally shall have been suspended on or by the New York Stock
Exchange, the American Stock Exchange or NASDAQ, (each, a “Trading Market”), (B) trading in the
Common Stock of the Company shall have been suspended on any exchange, in the over-the-counter
market or by the Commission, (C) a general moratorium on commercial banking activities shall have
been declared by federal or New York state authorities, (D) there shall have occurred any outbreak
or material escalation of hostilities or acts of terrorism involving the United States or there
shall have been a declaration by the

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United States of a national emergency or war, (E) there shall have occurred any other calamity
or crisis or any material change in general economic, political or financial conditions in the
United States or elsewhere, if the effect of any such event specified in clause (D) or (E), in the
judgment of the Representative, is material and adverse and makes it impractical or inadvisable to
proceed with the completion of the sale of and payment for the Shares on the Closing Date on the
terms and in the manner contemplated by this Agreement, the Disclosure Package and the Prospectus,
(ii) since the time of execution of this Agreement or the earlier respective dates as of which
information is given in the Disclosure Package, there has been any Material Adverse Effect or the
Company shall have sustained a loss by strike, fire, flood, earthquake, accident or other calamity
of such character that in the judgment of the Representative would, individually or in the
aggregate, result in a Material Adverse Effect and which would, in the judgment of the
Representative, make it impracticable or inadvisable to proceed with the offering or the delivery
of the Shares on the terms and in the manner contemplated in the Disclosure Package, (iii) the
Company shall have failed, refused or been unable to comply with the terms or perform any agreement
or obligation of this Agreement or any of the Subscription Terms, other than by reason of a default
by the Placement Agents, or (iv) any condition of the Placement Agents’ obligations hereunder is
not fulfilled. Any such termination shall be without liability of any party to any other party
except that the provisions of Section 4, Section 6, and Section 11 hereof
shall at all times be effective notwithstanding such termination.

     9. Notices. All statements, requests, notices and agreements hereunder shall be in writing or
by facsimile, and:

(a) if to the Placement Agents, shall be delivered or sent by mail, telex or facsimile
transmission to the Representative as follows:

ThinkEquity Partners LLC

Rodman & Renshaw, LLC

     c/o ThinkEquity Partners LLC

31 West 52nd Street

17th Floor

New York, NY 10019

Attention: David J. Strupp, Jr.

Facsimile No.: 212-468-7044

with a copy (which shall not constitute notice) to:

Lowenstein Sandler PC

1251 Avenue of the Americas

New York, New York 10020

Attention: Michael D. Maline, Esq.

Facsimile No.: 973-422-6873

(b) if to the Company shall be delivered or sent by mail, telex or facsimile transmission
to: EntreMed, Inc., 9640 Medical Center Drive, Rockville, Maryland 20850, Attention: Cynthia
Wong Hu, Vice-President, General Counsel and Secretary, (Facsimile No.: 240-864-2601), with
a copy (which shall not constitute notice) to: Arnold & Porter LLP, 555 Twelfth Street,
N.W., Washington, D.C. 20004, Attention: Richard E. Baltz, Esq., (Facsimile No.:
202-942-5999). Any such notice shall be effective only upon receipt. Any party to this
Agreement may change such address for notices by sending to the parties to this Agreement
written notice of a new address for such purpose.

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     10. Persons Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of
and shall be binding upon the Placement Agents, the Company and their respective successors and
assigns and the controlling persons, officers and directors referred to in Section 6.
Nothing in this Agreement is intended or shall be construed to give to any other person, firm or
corporation, other than the persons, firms or corporations mentioned in the preceding sentence, any
legal or equitable remedy or claim under or in respect of this Agreement, or any provision herein
contained. The term “successors and assigns” as herein used shall not include any purchaser of the
Shares by reason merely of such purchase.

     11. Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of New York, without giving effect to the conflicts of laws provisions thereof.

     12. No Fiduciary Relationship. The Company hereby acknowledges that the Placement Agents are
acting solely as placement agents in connection with the offering of the Company’s securities. The
Company further acknowledges that the Placement Agents are acting pursuant to a contractual
relationship created solely by this Agreement entered into on an arm’s length basis and in no event
do the parties intend that the Placement Agents act or be responsible as a fiduciary to the
Company, its management, stockholders, creditors or any other person in connection with any
activity that the Placement Agents may undertake or have undertaken in furtherance of the offering
of the Company’s securities, either before or after the date hereof. The Placement Agents hereby
expressly disclaim any fiduciary or similar obligations to the Company, either in connection with
the transactions contemplated by this Agreement or any matters leading up to such transactions, and
the Company hereby confirms its understanding and agreement to that effect. The Company and the
Placement Agents agree that they are each responsible for making their own independent judgments
with respect to any such transactions. The Company hereby waives and releases, to the fullest
extent permitted by law, any claims that the Company may have against the Placement Agents with
respect to any breach or alleged breach of any fiduciary or similar duty to the Company in
connection with the transactions contemplated by this Agreement or any matters leading up to such
transactions.

     13. Headings. The Section headings in this Agreement have been inserted as a matter of
convenience of reference and are not a part of this Agreement.

     14. Entire Agreement; Amendments and Waivers. This Agreement constitutes the entire agreement
between the parties hereto pertaining to the subject matter hereof and supersedes all prior
agreements, understandings, negotiations and discussions, whether oral or written, of the parties,
and there are no warranties, representations or other agreements among the parties in connection
with the subject matter hereof except as set forth specifically herein or contemplated hereby. No
supplement, modification or waiver of this Agreement shall be binding unless executed in writing by
the party to be bound thereby. The failure of a party to exercise any right or remedy shall not be
deemed or constitute a waiver of such right or remedy in the future. No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision
hereof (regardless of whether similar), nor shall any such waiver constitute a continuing waiver
unless otherwise expressly provided.

     15. Submission to Jurisdiction. Except as set forth below, no Proceeding may be commenced,
prosecuted or continued in any court other than the courts of the State of New York located in the
City and County of New York or in the United States District Court for the Southern District of New
York, which courts shall have jurisdiction over the adjudication of such matters, and the Company
and the Placement Agents each hereby consents to the jurisdiction of such courts and personal
service with respect thereto. The Company hereby waives all right to trial by jury in any
Proceeding (whether based upon contract, tort or otherwise) in any way arising out of or relating
to this Agreement. The Company agrees that a final and no longer appealable judgment in any such
Proceeding brought in any such court

-26-

 

shall be conclusive and binding upon the Company and may be enforced in any other courts in
the jurisdiction of which the Company is or may be subject, by suit upon such judgment.

     16. Counterparts. This Agreement may be executed in one or more counterparts and, if executed
in more than one counterpart, the executed counterparts shall each be deemed to be an original and
all such counterparts shall together constitute one and the same instrument. Delivery of an
executed counterpart by facsimile or electronic mail shall be effective as delivery of a manually
executed counterpart thereof.

     17. Research Analyst Independence. The Company acknowledges that the Placement Agents’
research analysts and research department are required to be independent from their investment
banking division and are subject to certain regulations and internal policies, and that such
Placement Agents’ research analysts may hold views and make statements or investment
recommendations and/or publish research reports with respect to the Company and/or the offering
that differ from the views of their investment banking division. The Company hereby waives and
releases, to the fullest extent permitted by law, any claims that the Company may have against the
Placement Agents with respect to any conflict of interest that may arise from the fact that the
views expressed by their independent research analysts and research department may be different
from or inconsistent with the views or advice communicated to the Company by such Placement Agents’
investment banking division. The Company acknowledges that the Placement Agents are full service
securities firms and as such from time to time, subject to applicable securities laws, rules and
regulations, may effect transactions for their own account or the account of their customers and
hold long or short positions in debt or equity securities of the Company; provided, however, that
nothing in this Section 17 shall relieve the Placement Agents of any responsibility or
liability they may otherwise bear in connection with activities in violation of applicable
securities laws, rules and regulations.

[Signature Page Follows]

-27-

 

     If the foregoing is in accordance with your understanding of the agreement between the Company
and the Placement Agents, kindly indicate your acceptance in the space provided for that purpose
below.

	 	 	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	ENTREMED, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ James S. Burns	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	James S. Burns	 	 
	 

	 	 	 	Title:
	 	President and Chief Executive Officer	 	 

	 	 	 	 	 
	Accepted as of

the date first above written:	 	 
	 
	 	 	 	 
	THINKEQUITY PARTNERS LLC	 	 
	 
	 	 	 	 
	By:

	 	/s/ David J. Strupp, Jr.
 

Name: David J. Strupp, Jr.
	 	 
	 

	 	Title: Partner	 	 
	 
	 	 	 	 
	RODMAN & RENSHAW, LLC	 	 
	 
	 	 	 	 
	By:

	 	/s/ Thomas G. Pinou
 

Name: Thomas G. Pinou
	 	 
	 

	 	Title: Chief Financial Officer	 	 

 

 

Schedules and Exhibits

	 	 	 
	Schedule I:

	 	Issuer General Free Writing Prospectuses
	 
	 	 
	Schedule II:

	 	Permitted Free Writing Prospectuses
	 
	 	 
	Schedule III:

	 	Subsidiaries
	 
	 	 
	Exhibit A:

	 	Subscription Terms
	 
	 	 
	Exhibit B:

	 	Form of Lock-Up Agreement
	 
	 	 
	Exhibit C:

	 	List of Directors and Executive Officers Executing Lock-Up Agreements
	 
	 	 
	Exhibit D:

	 	Matters To Be Covered In The Opinion Of Corporate Counsel To The Company
	 
	 	 
	Exhibit E:

	 	Matters To Be Covered In The Opinion Of IP Counsel To The Company
	 
	 	 
	Exhibit F:

	 	Form of Written Statement of Corporate Counsel to the Company
	 
	 	 
	Exhibit G:

	 	Pricing Information

 

 

Schedule I

Issuer General Free Writing Prospectuses

None

 

 

Schedule II

Permitted Free Writing Prospectuses

None

 

 

Schedule III

Subsidiaries

Miikana Therapeutics, Inc.

 

 

Exhibit A

Form of Subscription Terms

EntreMed, Inc.

9640 Medical Center Drive

Rockville, Maryland 20850

Ladies and Gentlemen:

The undersigned (the “Investor”) hereby confirms and agrees with you as follows:

1. The subscription terms set forth herein (this “Subscription”) are made as of the date
set forth below between EntreMed, Inc., a Delaware corporation (the “Company”), and the Investor.

2. As of the Closing (as defined below) and subject to the terms and conditions hereof,
the Company and the Investor agree that the Investor will purchase from the Company and the Company
will issue and sell to the Investor such number of shares of common stock, par value $0.01 per
share, of the Company (the “Common Stock”) as is set forth on the signature page hereto (the
“Signature Page”) for a purchase price of $1.60 per share (the “Shares”). The Investor
acknowledges that the offering is not a firm commitment underwriting and that there is no minimum
offering amount.

3. The completion of the purchase and sale of the Shares shall occur at a closing (the
“Closing”) which, in accordance with Rule 15c6-1 promulgated under the Securities Exchange Act of
1934, as amended, is expected to occur on or about December 18, 2006. At the Closing, (a) the
Company shall cause its transfer agent to release to the Investor the number of Shares being
purchased by the Investor and (b) the aggregate purchase price for the Shares being purchased by
the Investor will be delivered by or on behalf of the Investor to the Company. Settlement of the
Shares shall be by electronic transfer through the facilities of The Depository Trust Company’s
DWAC system and shall be made in accordance with the provisions set forth in Exhibit A
hereto, which shall be incorporated herein by reference as if set forth fully herein.

	 	a.	 	Delivery of Funds. No later than one (1) business day after the execution of
this Agreement by the Investor and the Company, the Investor shall remit by wire transfer
the amount of funds equal to the aggregate purchase price for the shares being purchased by
the Investor to the following account (the “Escrow Account”) designated by the Company and
the Placement Agents pursuant to the terms of that certain Escrow Agreement (the “Escrow
Agreement”) dated as of December 12, 2006, by and among the Company, the Placement Agents
and JP Morgan Chase Bank, N.A. (the “Escrow Agent”):

JPMorgan Chase Bank, NA

ABA#: 021000021

Account Name: JPMC as EA for EntreMed/ThinkEquity

Account #: 304875848

Attn: James Fulton

Such funds shall be held in escrow in a non-interest bearing account until the Closing and
delivered by the Escrow Agent on behalf of the Investors to the Company upon the
satisfaction, in the sole judgment of the Placement Agents, of the Company closing
conditions set forth in the Placement Agreement. The Placement Agents shall have no rights
in or to any of the escrowed

 

 

	 	 	 	funds, unless the Placement Agents and the Escrow Agent are notified in writing by the
Company in connection with the Closing that a portion of the escrowed funds shall be applied
to the Placement Fee. The Company and the Investor agree to indemnify and hold the Escrow
Agent harmless from and against any and all losses, costs, damages, expenses and claims
(including, without limitation, court costs and reasonable attorneys fees) (“Losses”)
arising under this Section 3 or otherwise with respect to the funds held in escrow pursuant
hereto or arising under the Escrow Agreement, unless it is finally determined that such
Losses resulted directly from the willful misconduct or gross negligence of the Escrow
Agent. Anything in this Subscription to the contrary notwithstanding, in no event shall the
Escrow Agent be liable for any special, indirect or consequential loss or damage of any kind
whatsoever (including but not limited to lost profits), even if the Escrow Agent has been
advised of the likelihood of such loss or damage and regardless of the form of action.
	 
	 	b.	 	Delivery of Shares. No later than one (1) business day after the execution of
this Agreement by the Investor and the Company , the Investor shall direct the
broker-dealer at which the account or accounts to be credited with the Shares being
purchased by such Investor are maintained, which broker/dealer shall be a DTC participant,
to set up a Deposit/Withdrawal at Custodian (“DWAC”) on the Closing Date instructing
American Stock Transfer and Trust Company, the Company’s transfer agent, to credit such
account or accounts with the Shares by means of an electronic book-entry delivery. Such
DWAC shall indicate the settlement date for the deposit of the Shares, which date shall be
provided to the Investor by the Placement Agents. Simultaneously with the delivery to the
Company by the Escrow Agent of the funds held in escrow pursuant to Section 3(a) above, the
Company shall direct its transfer agent to credit the Investor’s account or accounts with
the Shares pursuant to the information contained in the DWAC.

4. The offering and sale of the Shares are being made pursuant to the Registration
Statement and the Prospectus (as such terms are defined below). The Investor acknowledges that the
Company intends to enter into subscriptions in substantially the same form as this Subscription
with certain other investors and intends to offer and sell (the “Offering”) up to an aggregate of
10,727,500 shares of Common Stock pursuant to the Registration Statement and Prospectus. The
Company may accept or reject this Subscription or any one or more other subscriptions with other
investors in its sole discretion.

5. The Company has filed or shall file with the Securities and Exchange Commission (the
“Commission”) a prospectus (the “Base Prospectus”) and a final prospectus supplement (collectively,
the “Prospectus”) with respect to the registration statement (File No. 333-129276) reflecting the
Offering, including all amendments thereto, the exhibits and any schedules thereto, the documents
otherwise deemed to be a part thereof or included therein by the rules and regulations of the
Commission (the “Rules and Regulations”), and any registration statement relating to the Offering
and filed pursuant to Rule 462(b) under the Rules and Regulations (collectively, the “Registration
Statement”), in conformity with the Securities Act of 1933, as amended (the “Securities Act”),
including Rule 424(b) thereunder. The Investor hereby confirms that it has had full access to the
Base Prospectus, the prospectus supplement and the Company’s periodic reports and other information
incorporated by reference therein, and was able to read, review, download and print such materials.

6. The Company has entered into a Placement Agency Agreement (the “Placement Agreement”),
dated December 12, 2006 with ThinkEquity Partners LLC and Rodman & Renshaw, LLC (the “Placement
Agents”), which will act as the Company’s placement agents with respect to the Offering and receive
a fee (the “Placement Fee”) in connection with the sale of the Shares. The Placement Agreement
contains certain representations and warranties of the Company. The Company acknowledges and
agrees that the Investor may rely on the representations and warranties made by it to the Placement
Agents in Section 2 of the Placement Agreement to the same extent as if such representations and
warranties had

 

 

been incorporated in full herein and made directly to the Investor. Capitalized terms used, but
not otherwise defined, herein shall have the meanings ascribed to such terms in the Placement
Agreement.

7. The obligations of the Company and the Investor to complete the transactions
contemplated by this Subscription shall be subject to the following:

	 	a.	 	The Company’s obligation to issue and sell the Shares to the Investor shall be subject
to: (i) the acceptance by the Company of this Subscription (as may be indicated by the
Company’s execution of the Signature Page hereto), (ii) the receipt by the Company of the
purchase price for the Shares being purchased hereunder as set forth on the Signature Page
and (iii) the accuracy of the representations and warranties made by the Investor and the
fulfillment of those undertakings of the Investor to be fulfilled prior to the Closing
Date.
	 
	 	b.	 	The Investor’s obligation to purchase the Shares will be subject to the condition that
the Representative shall not have: (i) terminated the Placement Agreement pursuant to the
terms thereof or (ii) determined that the conditions to closing in the Placement Agreement
have not been satisfied.

8. The Company hereby makes the following representations, warranties and covenants to
the Investor:

	 	a.	 	The Company has the requisite corporate power and authority to enter into and to
consummate the transactions contemplated by this Subscription and otherwise to carry out
its obligations hereunder. The execution and delivery of this Subscription by the Company
and the consummation by it of the transactions contemplated hereunder have been duly
authorized by all necessary action on the part of the Company. This Subscription has been
duly executed by the Company and, when delivered in accordance with the terms hereof, will
constitute the valid and binding obligation of the Company enforceable against the Company
in accordance with its terms, except as may be limited by any bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance or other similar laws affecting the
enforcement of creditors’ rights generally or by general principles of equity.
	 
	 	b.	 	The Company shall (i) before the opening of trading on The NASDAQ Global Market on the
next trading day after the date hereof, issue a press release, disclosing all material
aspects of the transactions contemplated hereby and (ii) make such other filings and
notices in the manner and time required by the Commission with respect to the transactions
contemplated hereby. The Company shall not identify the Investor by name in any press
release or public filing, or otherwise publicly disclose the Investor’s name, without the
Investor’s prior written consent, unless required by law or the rules and regulations of
any self-regulatory organization which the Company or its securities are subject.

9. The Investor hereby makes the following representations, warranties and covenants to
the Company:

	 	a.	 	The Investor represents that (i) it has had full access to the Base Prospectus and the
prospectus supplement, as well as the Company’s periodic reports and other information
incorporated by reference therein, prior to or in connection with its receipt of this
Subscription, (ii) it is knowledgeable, sophisticated and experienced in making, and is
qualified to make, decisions with respect to investments in securities representing an
investment decision like that involved in the purchase of the Shares, and (iii) it does not
have any agreement or understanding, directly or indirectly, with any person or entity to
distribute any of the Shares.

 

 

	 	b.	 	The Investor has the requisite power and authority to enter into this Subscription and
to consummate the transactions contemplated hereby. The execution and delivery of this
Subscription by the Investor and the consummation by it of the transactions contemplated
hereunder have been duly authorized by all necessary action on the part of the Investor.
This Subscription has been executed by the Investor and, when delivered in accordance with
the terms hereof, will constitute a valid and binding obligation of the Investor
enforceable against the Investor in accordance with its terms, except as enforceability may
be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting creditors’ and contracting parties’ rights generally and except as enforceability
may be subject to general principles of equity (regardless of whether such enforceability
is considered in a proceeding in equity or at law).
	 
	 	c.	 	The Investor understands that nothing in this Subscription or any other materials
presented to the Investor in connection with the purchase and sale of the Shares
constitutes legal, tax or investment advice. The Investor has consulted such legal, tax
and investment advisors as it, in its sole discretion, has deemed necessary or appropriate
in connection with its purchase of Shares.
	 
	 	d.	 	Neither the Investor nor any Person acting on behalf of, or pursuant to any
understanding with or based upon any information received from, the Investor has, directly
or indirectly, engaged in any transactions in the securities of the Company (including,
without limitation, any Short Sales involving the Company’s securities) since the earlier
to occur of (i) the time that the Investor was first contacted by the Placement Agents or
the Company with respect to the transactions contemplated hereby and (ii) the date that is
the tenth (10th) trading day prior to the date the Investor executes this
Subscription. “Short Sales” include, without limitation, all “short sales” as defined in
Rule 200 promulgated under Regulation SHO under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), whether or not against the box, and all types of direct and
indirect stock pledges, forward sale contracts, options, puts, calls, short sales, swaps,
“put equivalent positions” (as defined in Rule 16a-1(h) under the Exchange Act) and similar
arrangements (including on a total return basis), and sales and other transactions through
non-U.S. broker dealers or foreign regulated brokers. The Investor covenants that neither
it, nor any Person acting on behalf of, or pursuant to any understanding with or based upon
any information received from, the Investor will engage in any transactions in the
securities of the Company (including Short Sales) prior to the time that the transactions
contemplated by this Subscription are publicly disclosed.
	 
	 	e.	 	The Investor represents that, except as set forth below, (i) it has had no position,
office or other material relationship within the past three years with the Company or
persons known to it to be affiliates of the Company, (ii) it is not a, and it has no direct
or indirect affiliation or association with any, NASD member or an Associated Person (as
such term is defined under the NASD Membership and Registration Rules Section 1011) as of
the date the Investor executes this Subscription, and (iii) neither it nor any group of
investors (as identified in a public filing made with the Commission) of which it is a
member, acquired, or obtained the right to acquire, 20% or more of the Common Stock (or
securities convertible or exercisable for Common Stock) or the voting power of the Company
on a post-transaction basis. Exceptions:

(If no exceptions, write “none.” If left blank, response will be deemed to be “none.”)

	 	f.	 	The Investor, if outside the United States, will comply with all applicable laws and
regulations in each foreign jurisdiction in which it purchases, offers, sells or delivers
Shares or has in its possession or distributes any offering material, in all cases at its
own expense.

 

 

10. Notwithstanding any investigation made by any party to this Subscription, all
covenants, agreements, representations and warranties made by the Company and the Investor herein
will survive the execution of this Subscription, the delivery to the Investor of the Shares being
purchased and the payment therefor.

11. This Subscription may not be modified or amended except pursuant to an instrument in
writing signed by the Company and the Investor.

12. In case any provision contained in this Subscription should be invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the remaining provisions
contained herein will not in any way be affected or impaired thereby.

13. This Subscription will be governed by, and construed in accordance with, the internal
laws of the State of New York, without giving effect to the principles of conflicts of law that
would require the application of the laws of any other jurisdiction.

14. This Subscription may be executed in one or more counterparts, each of which will
constitute an original, but all of which, when taken together, will constitute but one instrument,
and will become effective when one or more counterparts have been signed by each party hereto and
delivered to the other parties.

15. The Investor acknowledges and agrees that such Investor’s receipt of the Company’s
counterpart to this Subscription shall constitute written confirmation of the Company’s sale of
Shares to such Investor.

16. In the event that the Placement Agreement is terminated by the Placement Agents
pursuant to the terms thereof, this Subscription shall terminate without any further action on the
part of the parties hereto.

 

 

INVESTOR SIGNATURE PAGE

Number of
Shares:               
               
                
      

Purchase
Price Per Share: $ 1.60              
               
  

Aggregate Purchase Price:
$               
               
      

Please confirm that the foregoing correctly sets forth the agreement between us by signing in the
space provided below for that purpose.

Dated as of: December 12, 2006

 

	 	 	 
	 

INVESTOR

	 	 

	 	 	 	 	 	 	 
	By:

 

	 	 	 	 
	
Print Name:

 

	 	 	 	 
	Title:

 

	 	 	 	 
	 

	 	 

	 	 	 	 
	Name in which Shares are to be registered:	 	 	 	 
	 

	 	 	 	 

	 	 

	 	 	 	 	 
	Mailing Address:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Taxpayer Identification Number:
	 	 	 	 
	 

	 	 

	 	 

Manner of
Settlement: DWAC (see Exhibit A for explanation and instructions)

Agreed and Accepted this 12th day of December 2006:

ENTREMED, INC.

	 	 	 	 	 
	By:
	 	 	 	 
	Title:

	 	 

	 	 
	 

	 	 

	 	 

The sale of the Shares purchased hereunder was made pursuant to a registration statement or in a
transaction in which a final prospectus would have been required to have been delivered in the
absence of Rule 172 promulgated under the Securities Act.

 

 

Exhibit A

TO BE COMPLETED BY INVESTOR

SETTLING
VIA DWAC

Delivery by electronic book-entry at The Depository Trust Company (“DTC”), registered in the
Investor’s name and address as set forth on the Signature Page of the Subscription to which this
Exhibit A is attached, and released by American Stock Transfer and Trust Company, the
Company’s transfer agent (the “Transfer Agent”), to the Investor at the Closing.

	 	 	 	 	 	 	 
	 

	 	Name of DTC Participant (broker-dealer at
which the account or accounts to be credited
with the Shares are maintained)	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	DTC Participant Number	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name of Account at DTC Participant being credited with
the Shares	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Account Number at DTC Participant being credited with
the Shares	 	 	 	 
	 

	 	 	 	 

	 	 

NO LATER THAN ONE (1) BUSINESS DAY AFTER THE EXECUTION OF THE SUBSCRIPTION TO WHICH THIS
EXHIBIT A IS ATTACHED BY THE INVESTOR AND THE COMPANY, THE INVESTOR SHALL:

	 	(I)	 	DIRECT THE BROKER-DEALER AT WHICH THE ACCOUNT OR ACCOUNTS TO BE
CREDITED WITH THE SHARES ARE MAINTAINED TO SET UP A DEPOSIT/WITHDRAWAL AT CUSTODIAN
(“DWAC”) ON THE CLOSING DATE INSTRUCTING THE TRANSFER AGENT TO CREDIT SUCH ACCOUNT
OR ACCOUNTS WITH THE SHARES, AND
	 
	 	(II)	 	REMIT BY WIRE TRANSFER THE AMOUNT OF FUNDS EQUAL TO THE AGGREGATE
PURCHASE PRICE FOR THE SHARES BEING PURCHASED BY THE INVESTOR TO THE FOLLOWING
ACCOUNT:

JPMorgan Chase Bank, NA

ABA#: 021000021

Account Name: JPMC as EA for EntreMed/ThinkEquity

Account #: 304875848

Attn: James Fulton

 

 

Exhibit B

Form of Lock-Up Agreement

                    , 2006

THINKEQUITY PARTNERS LLC

RODMAN & RENSHAW, LLC

     c/o ThinkEquity Partners LLC

31 West 52nd Street

17th Floor

New York, NY 10019

Ladies and Gentlemen:

     The undersigned understands that you, as Placement Agents, propose to enter into the Placement
Agency Agreement (the “Placement Agreement”) with EntreMed, Inc., a Delaware corporation
(the “Company”), providing for the offering (the “Offering”) of shares (the
“Shares”) of common stock, par value $0.01 per share (the “Common Stock”), of the
Company. Capitalized terms used herein and not otherwise defined shall have the meanings set forth
in the Placement Agreement.

     In consideration of the foregoing, and in order to induce you to participate in the Offering,
and for other good and valuable consideration receipt of which is hereby acknowledged, the
undersigned hereby agrees that, without the Representative’s prior written consent (which consent
may be withheld in the Representative’s sole discretion), the undersigned will not, during the
period (the “Lock-Up Period”) beginning on the date hereof and ending on the date 90 days
after the date of the final prospectus (including the final prospectus supplement) to be used in
confirming the sale of the Shares, (1) offer, pledge, announce the intention to sell, sell,
contract to sell, sell any option or contract to purchase, purchase any option or contract to sell,
grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or
indirectly, or file (or participate in the filing of) a registration statement (other than a
registration statement on Form S-8 or any successor form) with the Securities and Exchange
Commission in respect of, any shares of Common Stock or any securities convertible into or
exercisable or exchangeable for Common Stock (including without limitation, Common Stock which may
be deemed to be beneficially owned by the undersigned in accordance with the rules and regulations
of the Securities and Exchange Commission and securities which may be issued upon exercise of a
stock option or warrant), (2) enter into any swap or other agreement that transfers, in whole or in
part, any of the economic consequences of ownership of the Common Stock, whether any such
transaction described in clause (1) or (2) above is to be settled by delivery of Common Stock or
such other securities, in cash or otherwise, (3) make any demand for or exercise any right with
respect to, the registration of any shares of Common Stock or any security convertible into or
exercisable or exchangeable for Common Stock, or (4) publicly announce an intention to effect any
transaction specific in clause (1), (2) or (3) above.

     Notwithstanding the foregoing, the restrictions set forth in clause (1) and (2) above shall
not apply to (a) transfers (i) as a bona fide gift or gifts, provided that the donee or donees
thereof agree to be bound in writing by the restrictions set forth herein, (ii) to any trust for
the direct or indirect benefit of the undersigned or the immediate family of the undersigned,
provided that the trustee of the trust agrees to be bound in writing by the restrictions set forth
herein, and provided further that any such transfer shall not involve a disposition for value,
(iii) with the Representative’s prior written consent or (iv) effected

 

 

pursuant to any exchange of “underwater” options with the Company, (b) the acquisition or
exercise of any stock option issued pursuant to the Company’s existing stock option plan or
employee stock purchase plan, including any exercise effected by the delivery of Shares of the
Company held by the undersigned, or (c) the purchase or sale of the Company’s securities pursuant
to a plan, contract or instruction that satisfies all of the requirements of Rule
10b5-1(c)(1)(i)(B) that was in effect prior to the date hereof. For purposes of this Lock-Up
Agreement, “immediate family” shall mean any relationship by blood, marriage or adoption, not more
remote than first cousin. None of the restrictions set forth in this Lock-Up Agreement shall apply
to Common Stock acquired in open market transactions.

     For the purpose of allowing you to comply with NASD Rule 2711(f)(4), if (1) during the last 17
days of the Lock-Up Period, the Company releases earnings results or publicly announces other
material news or a material event relating to the Company occurs or (2) prior to the expiration of
the Lock-Up Period, the Company announces that it will release earnings results during the 16 day
period beginning on the last day of the Lock-Up Period, then in each case the Lock-Up Period will
be extended until the expiration of the 18 day period beginning on the date of release of the
earnings results or the public announcement regarding the material news or the occurrence of the
material event, as applicable, unless the Representative waives, in writing, such extension. The
undersigned hereby acknowledges that the Company has agreed not to accelerate the vesting of any
option or warrant or the lapse of any repurchase right prior to the expiration of the Lock-Up
Period. In furtherance of the foregoing, the Company, and any duly appointed transfer agent for
the registration or transfer of the securities described herein, are hereby authorized to decline
to make any transfer of securities if such transfer would constitute a violation or breach of this
Lock-Up Agreement.

     The foregoing restrictions are expressly agreed to preclude the undersigned from engaging in
any hedging or other transaction which is designed to or reasonably expected to lead to or result
in a sale or disposition of the Common Stock even if such Common Stock would be disposed of by
someone other than the undersigned. Such prohibited hedging or other transactions would include
without limitation any short sale or any purchase, sale or grant of any right (including without
limitation any put option or put equivalent position or call option or call equivalent position)
with respect to any of the Common Stock or with respect to any security that includes, relates to,
or derives any significant part of its value from such Common Stock.

     The undersigned hereby represents and warrants that the undersigned has full power and
authority to enter into this Lock-Up Agreement. All authority herein conferred or agreed to be
conferred and any obligations of the undersigned shall be binding upon the successors, assigns,
heirs or personal representatives of the undersigned.

     The undersigned also agrees and consents to the entry of stop transfer instructions with the
Company’s transfer agent and registrar against the transfer of the undersigned’s shares of Common
Stock except in compliance with the foregoing restrictions.

     The undersigned understands that, if the Placement Agreement does not become effective, or if
the Placement Agreement (other than the provisions thereof which survive termination) shall
terminate or be terminated prior to payment for and delivery of the Shares to be sold thereunder,
the undersigned shall be released from all obligations under this Lock-Up Agreement.

 

 

     This Lock-Up Agreement shall be governed by and construed in accordance with the laws of the
State of New York, without regard to the conflict of laws principles thereof.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 

	 	Print Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Print Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Signature:	 	 	 	 
	 

	 	 	 	 

	 	 

 

 

Exhibit C

List of Directors and Executive Officers

Executing Lock-Up Agreements

Michael Tarnow

James S. Burns

Donald S. Brooks

Dwight L. Bush, Sr.

Ronald Cape, PhD

Jennie Hunter-Cevera, PhD

Peter S. Knight

Mark C. M. Randall

Dane Saglio

Cynthia Wong, Esq.

Carolyn F. Sidor, MD

Marc Corrado

 

 

Exhibit D

Matters To Be Covered In The

Opinion Of Corporate Counsel To The Company

1. The Company is a corporation validly existing and in good standing under the laws of the State
of Delaware with the requisite corporate power and authority necessary to own or lease, as the case
may be and operate its properties, to conduct its business as currently being carried on and as it
is described in the Registration Statement, the Disclosure Package and the Prospectus, to execute
and deliver the Placement Agency Agreement, and to issue, sell and deliver the Shares as
contemplated by the Placement Agency Agreement.

2. Each Subsidiary is an entity validly existing and in good standing under the laws of the state
of its organization with the requisite power and authority necessary to own or lease, as the case
may be and operate its properties, and to conduct its business as currently being carried on and as
it is described in the Registration Statement, the Disclosure Package and the Prospectus.

3. The Company has the authorized capital stock as set forth in the Registration Statement, the
Disclosure Package and the Prospectus.

4. The Shares have been duly and validly authorized by the Company and, when issued, sold and
delivered by the Company to, and paid for by, the Investors in accordance with the terms of the
Placement Agency Agreement and the Subscription Terms, will be validly issued, fully paid and
nonassessable.

5. There are no statutory preemptive rights or similar rights to subscribe for or to purchase any
Shares pursuant to the Company’s charter, by-laws or under any agreement, document or instrument
filed by the Company as an exhibit to its Annual Report on Form 10-K for the year ended December
31, 2005 (“Form 10-K”)..

6. To such counsel’s knowledge, neither the filing of the Registration Statement nor the offering
or sale of the Shares as contemplated by the Placement Agency Agreement gives rise to any rights
for or relating to the registration of any shares of Common Stock or other securities of the
Company under any agreement, document or instrument filed by the Company as an exhibit to its Form
10-K.

7. The Registration Statement has become effective under the Securities Act, and to such counsel’s
knowledge, no stop order suspending the effectiveness of the Registration Statement or any
post-effective amendment thereof has been issued by the Commission and no proceeding for that
purpose is pending before or, to such counsel’s knowledge, is threatened by the Commission; and all
filings required by Rule 424(b) and Rule 430(A), 430(B) or 430(C), as the case may be, promulgated
under the Securities Act have been made in the manner and within the time period required by Rule
424(b).

8. The Registration Statement, the Statutory Prospectus included in the Disclosure Package and the
Prospectus, and any amendment thereof or supplement thereto (except as to the financial statements
and schedules, and other financial or statistical data derived therefrom, contained in the
Registration Statement, the Disclosure Package and the Prospectus, as to which such counsel
expresses no opinion) as of each as of their respective effective or filing dates, complied as to
form in all material respects with the applicable requirements of the Securities Act and the Rules
and Regulations.

9. To such counsel’s knowledge, the Company has filed all reports required to be filed by it under
Section 13(a) of the Exchange Act of 1934, as amended (the “Exchange Act”), during the twelve month
period ended December 12, 2006 (the “SEC Documents”). As of their respective filing dates, the
SEC

 

 

Documents complied in all material respects as to form with the requirements of the Exchange Act
and the rules and regulations of the Commission promulgated thereunder. In rendering this opinion
paragraph number 9, we have assumed that the statements made and incorporated by reference therein
are correct and complete.

10. The Placement Agency Agreement and the Subscription Terms have been duly authorized by all
necessary corporate action on the part of the Company and have been duly executed and delivered by
the Company.

11. The execution and delivery of the Placement Agency Agreement and the Subscription Terms by the
Company and the issuance and sale by the Company of the Shares and the consummation by the Company
of the transactions contemplated by the Placement Agency Agreement and the Subscription Terms to be
consummated by the Company do not and will not result in any breach or a default under (nor
constitute any event that with notice, lapse of time or both would result in any breach or default
under), or conflict with (i) any provisions of the certificate of incorporation or by-laws of the
Company, (ii) any provision of any material license, permit, indenture, mortgage, deed of trust,
note, bank loan or credit agreement or other evidence of indebtedness, or any license, lease,
contract or other agreement or instrument filed as an exhibit to, or incorporated by reference
into, the Company’s Form 10-K or in any filing with the Commission made thereafter, (iii) any U.S.
federal, New York state law or Delaware General Corporation Law, regulation or rule under any of
the foregoing that, in such counsel’s experience, is generally applicable to transactions of the
nature of those contemplated by the Placement Agency Agreement and the Subscription Terms and is
not applicable to the Company because of the nature of its business or assets (other than the state
securities or blue sky laws and the rules of the NASD governing underwriter compensation, as to
which such counsel expresses no opinion), or (iv) any decree, judgment or order known to such
counsel to be applicable to the Company (other than the state securities or blue sky laws and the
rules of the NASD governing underwriter compensation, as to which such counsel expresses no
opinion).

12. The Company is not, and will not be after the giving effect to the offering and sale of the
Shares and the application of the proceeds thereof as described in the Prospectus, required to
register as an “investment company” as defined in the Investment Company Act of 1940, as amended.

13. No approval, authorization, consent or order or filing with any U.S. federal or New York state
court or governmental or regulatory agency or body in the United States having jurisdiction over
the Company, or approval of the shareholders of the Company, is required to be obtained or made by
the Company for the consummation by the Company of the transactions contemplated by the Placement
Agency Agreement and the Subscription Terms, except for such as have been duly obtained or made,
including without limitation, registration of the Shares under the Securities Act and of the Common
Stock under the Exchange Act, or such as may be required under (x) the state securities or blue sky
laws of the various states or (y) the bylaws or rules and regulations of the National Association
of Securities Dealers, Inc., as to which such counsel expresses no opinion.

 

 

Exhibit E

Matters To Be Covered In The

Opinion Of IP Counsel To The Company

1. Such counsel is familiar with the technology used by the Company in its business and the manner
of its use thereof and has read the Registration Statement, the Disclosure Package and the
Prospectus, including particularly the portions of the Registration Statement, the Disclosure
Package and the Prospectus referring to patents, trade secrets, trademarks, service marks or other
proprietary information or materials.

2. The statements in the Company’s Annual Report on Form 10-K for the fiscal year ended December
31, 2005, under the captions “Risk Factors — We Depend on Patents and Other Proprietary Rights,
Some of Which are Uncertain,” “Business — Relationships — Corporate and Non-Profit,” and “Business
— Patents, Licenses and Proprietary Rights” (collectively, the “Intellectual Property Portion”),
to such counsel’s knowledge, insofar as such statements constitute a summary of the Company’s
patents and patent applications (including patents and patent applications licensed to the Company)
are in all material respects complete and accurate summaries and fairly summarize in all material
respects the legal matters, documents and proceedings relating to the Company’s patents and the
Company’s patent applications (including patents and patent application license to the Company).

3. The Company either has exclusively licensed, or is listed in the records of the United States
Patent and Trademark Office as the holder of record, of the patents listed on Schedule I attached
to this opinion which are all of the U.S. patents (the “Patents”) and each of the applications
listed on Schedule I attached to this opinion are all of the U.S. patent applications (the
“Applications”) to which the Company has rights as owner or licensee as set forth in Schedule I
attached to this opinion. There are no claims of third parties pending or, to the best knowledge of
such counsel, threatened to any ownership interest or lien with respect to any of the Patents or
Applications. To the best knowledge of such counsel, the Company owns as its sole property or has
exclusively licensed the Patents and pending Patent Applications.

4. Such counsel knows of no claims of third parties pending or, to the best knowledge of such
counsel, threatened to any ownership interest or lien with respect to the Company’s foreign patents
listed on Schedule II attached to this opinion which are all of the Company’s foreign patents (the
“Foreign Patents”), or any of the Company’s foreign patent applications listed on Schedule II
attached to this opinion which are all of the Company’s foreign patent applications (the “Foreign
Applications”). To the best knowledge of such counsel, the Company either owns as its sole property
or has exclusively licensed, the Foreign Patents and pending Foreign Applications.

5. To the best of its knowledge, such counsel is not aware of any material defects of form in the
preparation or filing of the Company’s Patents, Foreign Patents, Applications or Foreign
Applications. The Company’s Patents, Foreign Patents, Applications or Foreign Applications are
being diligently pursued by the Company.

6. To the best of its knowledge, such counsel knows of no reason why the Patents or Foreign Patents
are not valid as issued. Such counsel has no knowledge of any reason why any patent to be issued as
a result of any Application or Foreign Application would not be valid or would not afford the
Company useful patent protection with respect thereto.

7. Such counsel is not aware of any pending or, to the best of its knowledge, threatened action,
suit, proceeding or claim by others challenging the validity or the scope of the Patents, Foreign
Patents,

 

 

Applications, Foreign Applications or other proprietary information to which the Company is a party
or of which any property of the Company is subject.

8. Such counsel is not aware of any pending or, to the best of its knowledge, threatened action,
suit proceeding or claim by others that the Company is infringing or otherwise violating any
patent, trademarks or trade secrets of others, nor, to the best of its knowledge, is such counsel
aware of any rights of third parties to any of the Company’s inventions described in the
Applications, issued, approved or licensed patents which could reasonably be expected to materially
affect the ability of the Company to conduct its business as described in the Registration
Statement, the Disclosure Package or the Prospectus.

     In addition to the matters set forth above, to the best of counsel’s knowledge, the portions
of the Registration Statement, the Disclosure Package and the Prospectus that relate to the
Intellectual Property, fairly and accurately describe the Company’s rights with respect to the
Patents, Foreign Patents, Applications, Foreign Applications and other intellectual property, and
that nothing has come to the attention of such counsel which leads it to believe that (i) the
Registration Statement or any amendment thereof (including any information omitted from the
Registration Statement at the time it became effective but that is deemed to be part of and
included in the Registration Statement pursuant to rule 430A, 430B or 430C), at the time it (or
such amendment) became effective and at the Closing Date, contained or contains any untrue
statement of a material fact or omitted or omits to state a material fact required to be stated
therein or necessary to make the statements therein not misleading, (ii) the Disclosure Package, as
of the Time of Sale or at the Closing Date, contained or contains any untrue statement of a
material fact or omitted or omits to state a material fact necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading or (iii) the
Prospectus, or any supplement thereto, as of its issue date and as of the Closing Date, contained
or contains an untrue statement of a material fact or omitted or omits to state a material fact
necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading (it being understood that such counsel expresses no opinion with
respect to the financial statements and schedules, and other financial data derived therefrom,
included in any of the documents mentioned in this paragraph).

 

 

Exhibit F

Form of Written Statement of

Corporate Counsel to the Company

In the course of the preparation by the Company of the Registration Statement and the Prospectus,
such counsel has participated in discussions with representatives of the Placement Agents, counsel
to the Placement Agents, the Company’s independent public accountants and certain officers and
other representatives of the Company, in which the business and affairs of the Company were
discussed. Although such counsel has not undertaken (except to the extent stated in paragraphs 3,
8, 9 and 11 of such counsel’s legal opinion of even date herewith), to determine independently, and
do not assume any responsibility for, the accuracy, completeness or fairness of the statements
contained in the Registration Statement or the Prospectus, or any amendments or supplements
thereto, nothing has come to such counsel’s attention that have caused such counsel to believe that
(i) the Registration Statement or any amendment thereof (including any information omitted from the
Registration Statement at the time it became effective but that is deemed to be part of and
included in the Registration Statement pursuant to rule 430A, 430B or 430C), at the time it (or
such amendment) became effective and at the Closing Date, contained or contains any untrue
statement of a material fact or omitted or omits to state a material fact required to be stated
therein or necessary to make the statements therein not misleading, (ii) the Disclosure Package, as
of the Time of Sale or at the Closing Date, contained or contains any untrue statement of a
material fact or omitted or omits to state a material fact necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading or (iii) the
Prospectus, or any supplement thereto, as of its issue date and as of the Closing Date, contained
or contains an untrue statement of a material fact or omitted or omits to state a material fact
necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading (it being understood that such counsel expresses no opinion with
respect to the financial statements and schedules, and other financial data derived therefrom,
included in any of the documents mentioned in this paragraph).

 

 

Exhibit G

Pricing Information

Number of Shares to be Sold: 10,727,500

Offering Price: $1.60 per Share

Aggregate Placement Agency Fees: $1,029,840

Estimated Net Proceeds to the Company (exclusive of estimated expenses of the Company): $16,134,160exv4w1

 

Exhibit 4.1

Orbital Sciences Corporation

2.4375% Convertible Senior Subordinated Notes due 2027

INDENTURE

Dated as of December 13, 2006

The Bank of New York, as Trustee

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	1	 
	Section 1.01. Definitions
	 	 	1	 
	Section 1.02. Other Definitions
	 	 	11	 
	Section 1.03. Trust Indenture Act Provisions
	 	 	12	 
	Section 1.04. Rules of Construction
	 	 	13	 
	ARTICLE 2 THE SECURITIES
	 	 	13	 
	Section 2.01. Form and Dating
	 	 	13	 
	Section 2.02. Execution and Authentication
	 	 	15	 
	Section 2.03. Registrar, Paying Agent and Conversion Agent
	 	 	16	 
	Section 2.04. Paying Agent to Hold Money in Trust
	 	 	16	 
	Section 2.05. Lists of Holders of Securities
	 	 	17	 
	Section 2.06. Transfer and Exchange
	 	 	17	 
	Section 2.07. Replacement Securities
	 	 	18	 
	Section 2.08. Outstanding Securities
	 	 	19	 
	Section 2.09. Treasury Securities
	 	 	19	 
	Section 2.10. Temporary Securities
	 	 	19	 
	Section 2.11. Cancellation
	 	 	20	 
	Section 2.12. Legend; Additional Transfer and Exchange Requirements
	 	 	20	 
	Section 2.13.
Withholding
	 	 	23	 
	Section 2.14. CUSIP Numbers
	 	 	24	 
	ARTICLE 3 REPURCHASE
	 	 	24	 
	Section 3.01. Repurchase at Option of Holders upon a Fundamental Change
	 	 	24	 
	Section 3.02. Repurchase at Option of Holders on Certain Dates
	 	 	27	 
	Section 3.03. Repayment to the Company
	 	 	30	 
	Section 3.04. Securities Purchased in Part
	 	 	30	 
	Section 3.05. Compliance with Securities Laws upon Purchase of Securities
	 	 	30	 
	Section 3.06. Purchase of Securities in Open Market
	 	 	30	 
	ARTICLE 4 CONVERSION
	 	 	31	 
	Section 4.01. Conversion Privilege and Conversion Rate
	 	 	31	 
	Section 4.02. Conversion Procedure
	 	 	35	 
	Section 4.03. Fractional Shares
	 	 	36	 

i

 

	 	 	 	 	 
	 	 	Page	 
	Section 4.04. Taxes on Conversion
	 	 	36	 
	Section 4.05. Company to Provide Stock
	 	 	37	 
	Section 4.06. Adjustment of Conversion Rate
	 	 	37	 
	Section 4.07. No Adjustment
	 	 	43	 
	Section 4.08. Notice of Adjustment
	 	 	43	 
	Section 4.09. Notice of Certain Transactions
	 	 	44	 
	Section 4.10. Effect of Consolidation, Merger or Binding Share Exchange
	 	 	44	 
	Section 4.11. Withholding
	 	 	44	 
	Section 4.12. Trustee’s Disclaimer
	 	 	44	 
	Section 4.13. Conversion Settlement
	 	 	44	 
	ARTICLE 5 COVENANTS
	 	 	45	 
	Section 5.01. Payment of Securities
	 	 	45	 
	Section 5.02. SEC and Other Reports
	 	 	46	 
	Section 5.03. Compliance Certificates
	 	 	47	 
	Section 5.04. Further Instruments and Acts
	 	 	47	 
	Section 5.05. Maintenance of Corporate Existence
	 	 	47	 
	Section 5.06. Rule 144A Information Requirement
	 	 	47	 
	Section 5.07. Stay, Extension and Usury Laws
	 	 	47	 
	Section 5.08. Payment of Additional Interest
	 	 	48	 
	Section 5.09. Maintenance of Office or Agency
	 	 	48	 
	Section 5.10. No Layering of Indebtedness.
	 	 	48	 
	ARTICLE 6 CONSOLIDATION; MERGER; CONVEYANCE; TRANSFER OR LEASE
	 	 	48	 
	Section 6.01. Company May Consolidate, Etc., Only on Certain Terms
	 	 	48	 
	Section 6.02. Successor Substituted
	 	 	49	 
	ARTICLE 7 DEFAULT AND REMEDIES
	 	 	50	 
	Section 7.01. Events of Default
	 	 	50	 
	Section 7.02. Acceleration
	 	 	51	 
	Section 7.03. Other Remedies
	 	 	52	 
	Section 7.04. Waiver of Defaults and Events of Default
	 	 	52	 
	Section 7.05. Control by Majority
	 	 	53	 
	Section 7.06. Limitations on Suits
	 	 	53	 
	Section 7.07. Rights of Holders to Receive Payment and to Convert
	 	 	53	 
	Section 7.08. Collection Suit by Trustee
	 	 	54	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	Section 7.09. Trustee May File Proofs of Claim
	 	 	54	 
	Section 7.10. Priorities
	 	 	54	 
	Section 7.11. Undertaking for Costs
	 	 	55	 
	ARTICLE 8 TRUSTEE
	 	 	55	 
	Section 8.01. Obligations of Trustee
	 	 	55	 
	Section 8.02. Rights of Trustee
	 	 	56	 
	Section 8.03. Individual Rights of Trustee
	 	 	58	 
	Section 8.04. Trustee’s Disclaimer
	 	 	58	 
	Section 8.05. Notice of Default or Events of Default
	 	 	58	 
	Section 8.06. Reports by Trustee to Holders
	 	 	58	 
	Section 8.07. Compensation and Indemnity
	 	 	58	 
	Section 8.08. Replacement of Trustee
	 	 	59	 
	Section 8.09. Successor Trustee by Merger, Etc.
	 	 	60	 
	Section 8.10. Eligibility; Disqualification
	 	 	60	 
	Section 8.11. Preferential Collection of Claims Against Company
	 	 	61	 
	ARTICLE 9 SATISFACTION AND DISCHARGE OF INDENTURE
	 	 	61	 
	Section 9.01. Satisfaction and Discharge of Indenture
	 	 	61	 
	Section 9.02. Application of Trust Money
	 	 	62	 
	Section 9.03. Repayment to Company
	 	 	62	 
	Section 9.04. Reinstatement
	 	 	62	 
	ARTICLE 10 AMENDMENTS; SUPPLEMENTS AND WAIVERS
	 	 	63	 
	Section 10.01. Without Consent of Holders
	 	 	63	 
	Section 10.02. With Consent of Holders
	 	 	64	 
	Section 10.03. Compliance with Trust Indenture Act
	 	 	65	 
	Section 10.04. Revocation and Effect of Consents
	 	 	65	 
	Section 10.05. Notation on or Exchange of Securities
	 	 	65	 
	Section 10.06. Trustee to Sign Amendments, Etc.
	 	 	65	 
	ARTICLE 11 REDEMPTION
	 	 	66	 
	Section 11.01. Redemption
	 	 	66	 
	ARTICLE 12 SUBORDINATION
	 	 	67	 
	Section 12.01. Agreement to Subordinate
	 	 	67	 
	Section 12.02. Liquidation; Dissolution; Bankruptcy.
	 	 	67	 
	Section 12.03. Default on Designated Senior Indebtedness
	 	 	68	 

iii

 

	 	 	 	 	 
	 	 	Page	 
	Section 12.04. Acceleration of Securities
	 	 	69	 
	Section 12.05. When Distribution Must Be Paid Over
	 	 	69	 
	Section 12.06. Notice by Company
	 	 	69	 
	Section 12.07. Subrogation
	 	 	70	 
	Section 12.08. Relative Rights
	 	 	70	 
	Section 12.09. Subordination May Not Be Impaired By Company
	 	 	71	 
	Section 12.10. Distribution or Notice to Representative
	 	 	71	 
	Section 12.11. Reliance on Judicial Orders or Certificates
	 	 	71	 
	Section 12.12. Rights of Trustee and Paying Agent
	 	 	71	 
	Section 12.13. Authorization to Effect Subordination
	 	 	71	 
	Section 12.14. Payment Permitted If No Default
	 	 	72	 
	ARTICLE 13 MISCELLANEOUS
	 	 	72	 
	Section 13.01. Trust Indenture Act Controls
	 	 	72	 
	Section 13.02. Notices
	 	 	72	 
	Section 13.03. Communications by Holders with Other Holder
	 	 	73	 
	Section 13.04. Certificate and Opinion as to Conditions Precedent
	 	 	73	 
	Section 13.05. Record Date for Vote or Consent of Holders of Securities
	 	 	74	 
	Section 13.06. Rules by Trustee, Paying Agent, Registrar and Conversion Agent
	 	 	75	 
	Section 13.07.
Payment Dates Not On A Business Day
	 	 	75	 
	Section 13.08. Governing Law
	 	 	75	 
	Section 13.09. No Adverse Interpretation of Other Agreements
	 	 	75	 
	Section 13.10. No Security Interest Created
	 	 	76	 
	Section 13.11. Successors
	 	 	76	 
	Section 13.12. Multiple Counterparts
	 	 	76	 
	Section 13.13. Separability
	 	 	76	 
	Section 13.14. Table of Contents, Headings, Etc.
	 	 	76	 
	Section 13.15. Waiver of Jury Trial.
	 	 	76	 
	Section 13.16. Force Majeure.
	 	 	76	 
	Exhibit
	 	 	A-1	 

iv

 

CROSS REFERENCE TABLE*

	 	 	 	 	 	 	 
	TIA	 	 	 	 	 	INDENTURE
	SECTION	 	 	 	 	 	SECTION
	Section
	 	310	 	 	 	13.01
	 
	 	310(a)(1)	 	 	 	8.10
	 
	 	(a)(2)	 	 	 	8.10
	 
	 	(a) (3)	 	 	 	N.A.**
	 
	 	(a) (4)	 	 	 	N.A.
	 
	 	(a) (5)	 	 	 	8.10
	 
	 	(b)	 	 	 	8.08, 8.10
	 
	 	(c)	 	 	 	N.A.
	Section
	 	311	 	 	 	13.01
	 
	 	311 (a)	 	 	 	8.11
	 
	 	(b)	 	 	 	8.11
	 
	 	(c)	 	 	 	N.A.
	Section
	 	312	 	 	 	13.01
	 
	 	312(a)	 	 	 	2.05
	 
	 	(b)	 	 	 	13.03
	 
	 	(c)	 	 	 	13.03
	Section
	 	313	 	 	 	13.01
	 
	 	313(a)	 	 	 	8.06(a)
	 
	 	(b)(1)	 	 	 	N.A.
	 
	 	(b)(2)	 	 	 	8.06(a)
	 
	 	(c)	 	 	 	8.06(a)
	 
	 	(d)	 	 	 	8.06(b)
	Section
	 	314	 	 	 	13.01
	 
	 	314(a)	 	 	 	5.02(a); 5.03
	 
	 	(b)	 	 	 	N.A.
	 
	 	(c)(1)	 	 	 	2.02; 9.01; 13.04
	 
	 	(c)(2)	 	 	 	9.01; 13.04
	 
	 	(c)(3)	 	 	 	N.A.
	 
	 	(d)	 	 	 	N.A.
	 
	 	(e)	 	 	 	13.04
	 
	 	(f)	 	 	 	N.A.
	Section
	 	315	 	 	 	13.01
	 
	 	315(a)	 	 	 	8.01(b)
	 
	 	(b)	 	 	 	8.05
	 
	 	(c)	 	 	 	8.01(a)
	 
	 	(d)	 	 	 	8.01(c)
	 
	 	(d)(2)	 	 	 	8.01(c)
	 
	 	(d)(3)	 	 	 	8.01(c)
	 
	 	(e)	 	 	 	7.11
	Section
	 	316	 	 	 	13.01
	 
	 	316 (a)	 	 	 	7.05; 10.02(b)
	 
	 	(b)	 	 	 	7.07
	 
	 	(c)	 	 	 	13.05(a)

 

 

	 	 	 	 	 	 	 
	TIA	 	 	 	 	 	INDENTURE
	SECTION	 	 	 	 	 	SECTION
	Section
	 	317	 	 	 	13.01
	 
	 	317(a)(1)	 	 	 	7.08
	 
	 	317(a)(2)	 	 	 	7.09
	 
	 	317(b)	 	 	 	2.04
	Section 318
	 	 	 	 	 	13.01

 

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

 

 

     THIS INDENTURE dated as of December 13, 2006 is between Orbital Sciences Corporation, a
corporation duly organized under the laws of the State of Delaware (the “Company”), and The Bank of
New York, a New York banking corporation, as Trustee (the “Trustee”).

     In consideration of the purchase of the Securities (as defined herein) by the Holders thereof,
both parties agree as follows for the benefit of the other and for the equal and ratable benefit of
the Holders of the Securities.

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

     Section 1.01. Definitions.

     “Additional Interest” has the meaning specified in the Registration Rights Agreement. All
references herein to interest accrued or payable as of any date shall include any Additional
Interest accrued or payable as of such date as provided in the Registration Rights Agreement.

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

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

     “Amended and Restated Credit Agreement” means that certain Credit Agreement dated as of
December 29, 2004 as among the Company, as borrower, the Lenders referred to therein, Bank of
America, N.A., as Administrative Agent and Wachovia Bank, National Association, as Documentation
Agent, as amended, restated, modified, renewed, refunded, replaced, restructured or refinanced
(including any agreement to increase the amount of available borrowings thereunder, extend the
maturity thereof and add additional borrowers or guarantors) in whole or in part from time to time
under the same or any other agent, lender or group of lenders.

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

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

     “Applicable Procedures” means, with respect to any transfer or exchange of beneficial
ownership interests in a Global Security, the rules and procedures of the Depositary, to the extent
applicable to such transfer or exchange.

 

 

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

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

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

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

     “Capital Lease Obligation” means, at the time any determination is to be made, the amount of
the liability in respect of a capital lease that would at that time be required to be capitalized
on a balance sheet in accordance with GAAP.

     “Capital Stock” means:

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

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

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

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

     “Cash” or “cash” means such coin or currency of the United States as at any time of payment is
legal tender for the payment of public and private debts.

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

     “Closing Sale Price” of the Common Stock or other capital stock or similar equity interests or
other publicly traded securities on any date means the closing sale price per share (or, if no
closing sale price is reported, the average of the closing bid and ask prices or, if more than one
in either case, the average of the average closing bid and the average closing ask prices) on
such date as reported on the principal United States securities exchange on which the Common
Stock or such other capital stock or similar equity interests or other securities are traded or, if
the Common Stock or such other capital stock or similar equity interests or other securities is not
listed on a United States national or regional securities exchange, as reported by the National

2

 

Quotation Bureau Incorporated or another established over-the-counter trading market in the United
States. The Closing Sale Price shall be determined without regard to after-hours trading or
extended market making. In the absence of the foregoing, the Company shall determine the Closing
Sale Price on such basis as it considers appropriate.

     “Common Stock” means the common stock of the Company, par value $0.01 per share, as it exists
on the date of this Indenture and any shares of any class or classes of Capital Stock of the
Company resulting from any reclassification or reclassifications thereof, or, in the event of a
merger, consolidation or other similar transaction involving the Company that is otherwise
permitted hereunder in which the Company is not the surviving corporation, the common stock, common
equity interests, ordinary shares or depositary shares or other certificates representing common
equity interests of such surviving corporation or its direct or indirect parent corporation, and
which have no preference in respect of dividends or of amounts payable in the event of any
voluntary or involuntary liquidation, dissolution or winding-up of the Company and which are not
subject to redemption by the Company; provided, however, that if at any time there shall be more
than one such resulting class, the shares of each such class then so issuable on conversion of
Securities shall be substantially in the proportion which the total number of shares of such class
resulting from all such reclassifications bears to the total number of shares of all such classes
resulting from all such reclassifications.

     “Company” means the party named as such in the first paragraph of this Indenture until a
successor replaces it pursuant to the applicable provisions of this Indenture, and thereafter
“Company” shall mean such successor.

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

     “Conversion Price” per share of Common Stock as of any day means the result obtained by
dividing (i) $1,000 by (ii) the Applicable Conversion Rate, rounded to the nearest cent, which
price shall be initially $24.48 per share of Common Stock.

     “Conversion Rate” means the rate at which shares of Common Stock shall be delivered upon
conversion, which rate shall be initially 40.8513 shares of Common Stock for each $1,000 principal
amount of Securities, as adjusted from time to time pursuant to the provisions of this Indenture.

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

     “Corporate Trust Office” means the office of the Trustee at which at any particular time the
trust created by this Indenture shall be administered, which initially will be the office of The
Bank of New York, located at 101 Barclay Street – 8W, New York, NY 10286, attention: Corporate
Trust Administration.

     “Credit Facilities” means one or more debt facilities or agreements (including, without
limitation, the Amended and Restated Credit Agreement) or commercial paper facilities, in each case
with banks or other institutional lenders or investors providing for revolving credit loans, term
loans, receivables financing (including through the sale of receivables to such lenders or to

3

 

special purpose entities formed to borrow from such lenders against such receivables) or letters of
credit, in each case, as amended, restated, modified, renewed, refunded, replaced, restructured or
refinanced (including any agreement to increase the amount of available borrowings thereunder,
extend the maturity thereof and add additional borrowers or guarantors) in whole or in part from
time to time under the same or any other agent, lender or group of lenders.

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

     (a) zero; and

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

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

10 x CSP

where:

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

“CR” means the Applicable Conversion Rate, and

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

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

     “Designated Senior Indebtedness” means (i) any Indebtedness outstanding under the Amended and
Restated Credit Agreement and (ii) any other Senior Indebtedness the principal amount of which is
$5 million or more and that has been designated by the Company as “Designated Senior Indebtedness.”

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

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

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

     “Final Maturity Date” means January 15, 2027.

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

4

 

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

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

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

     (4) the Common Stock (or other common stock into which the Securities are then
convertible) ceases to be listed on a national securities exchange or quoted on an
established automated over-the-counter trading market in the United States; or

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

     Notwithstanding the foregoing, even if any of the events specified in the preceding clauses
(1) through (3) have occurred, except as specified in clauses (x) and (y) below, a Fundamental
Change will not be deemed to have occurred if either: (x) the Closing Sale Price per share of
Common Stock for any five Trading Days within (i) the period of 10 consecutive Trading Days ending
immediately after the later of the Fundamental Change or the public announcement of the Fundamental
Change, in the case of a Fundamental Change relating to an acquisition of Capital Stock, or (ii)
the period of 10 consecutive Trading Days ending immediately after the Fundamental Change, in the
case of a Fundamental Change relating to a merger, consolidation or asset sale, equals or exceeds
105% of the Conversion Price in effect on each of those Trading Days; provided, however, that the
exception to the definition of “Fundamental Change” specified in this clause (x) shall not apply in
the context of a Fundamental Change for purposes of Section 4.01(h) or Section 4.01(a)(4); or (y)
at least 90% of
the consideration (excluding cash payments for fractional shares and cash payments made
pursuant to dissenters’ appraisal rights) in a merger, consolidation or other transaction otherwise
constituting a Fundamental Change consists of shares of common stock (or depositary receipts or

5

 

other certificates representing common equity interests) traded on a national securities exchange
or quoted on an established automated over-the-counter trading market in the United States (or will
be so traded or quoted immediately following such merger, consolidation or other transaction) and
as a result of the merger, consolidation or other transaction the Securities become convertible
into such shares of common stock (or depositary receipts or other certificates representing common
equity interests). For the purposes of this definition, “person” includes any syndicate or group
that would be deemed to be a “person” under Section 13(d)(3) of the Exchange Act.

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

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

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

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

     “GAAP” means accounting principles generally accepted in the United States 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, which are in effect from time to time.

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

     “Guarantee” means a guarantee other than by endorsement of negotiable instruments for
collection in the ordinary course of business, direct or indirect, in any manner including, without
limitation, by way of a pledge of assets or through letters of credit or reimbursement agreements
in respect thereof, of all or any part of any Indebtedness.

     “Hedging Obligations” means, with respect to any specified person, the obligations of such
person under:

     (1) interest rate swap agreements, interest rate cap agreements and interest rate
collar agreements; and

     (2) other agreements or arrangements designed to protect such person against
fluctuations in interest rates.

6

 

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

     “Indebtedness” means, with respect to any specified Person, any indebtedness of such Person,
whether or not contingent:

     (3) in respect of borrowed money;

     (4) evidenced by bonds, notes, debentures or similar instruments or letters of credit
(or reimbursement agreements in respect thereof);

     (5) in respect of banker’s acceptances;

     (6) representing Capital Lease Obligations;

     (7) representing the balance deferred and unpaid of the purchase price of any property,
except any such balance that constitutes an accrued expense or trade payable; or

     (8) representing any hedging obligations,

if and to the extent any of the preceding items (other than letters of credit and hedging
obligations) would appear as a liability upon a balance sheet of the specified Person prepared in
accordance with GAAP.

     In addition, the term “Indebtedness” includes all indebtedness of others secured by a Lien on
any asset of the specified Person (whether or not such indebtedness is assumed by the specified
person) and, to the extent not otherwise included, the Guarantee by the specified Person of any
indebtedness of any other Person.

     Notwithstanding anything in the foregoing to the contrary, Indebtedness shall not include
trade payables or accrued expenses for property or services incurred in the ordinary course of
business. The amount of any Indebtedness outstanding as of any date shall be:

     (A) the accreted value of the Indebtedness, in the case of any Indebtedness issued with
original issue discount; and

     (B) the principal amount of the Indebtedness, together with any interest on the
Indebtedness that is more than 30 days past due, in the case of any other Indebtedness.

     “Indenture” means this Indenture, as amended or supplemented from time to time pursuant to the
terms of this Indenture, including the provisions of the TIA that are automatically deemed to be a
part of this Indenture by operation of the TIA.

     “Initial Purchasers” means Wachovia Capital Markets, LLC and Banc of America Securities LLC.

     “Interest Payment Date” means January 15 and July 15, commencing July 15, 2007.

7

 

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

     “Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest
or encumbrance of any kind in respect of such asset, whether or not filed, recorded or otherwise
perfected under applicable law, including any conditional sale or
other title retention agreement,
any lease in the nature thereof, any option or other agreement to sell or give a security interest
in and any filing of or agreement to give any financing statement under the Uniform Commercial Code
(or equivalent statutes) of any jurisdiction.

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

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

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

     “NYSE” means New York Stock Exchange.

     “Obligations” means any principal, interest, penalties, fees, indemnifications,
reimbursements, costs, expenses, damages and other liabilities payable under the documentation
governing any Indebtedness.

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

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

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

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

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

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

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

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

8

 

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

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

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

     “Registration Rights Agreement” means the Registration Rights Agreement, dated as of December
13, 2006, between the Company and the Initial Purchasers, as amended from time to time in
accordance with its terms.

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

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

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

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

     “Rule 144” means Rule 144 under the Securities Act, as it may be amended from time to time, or
any successor to such Rule.

     “Rule 144A” means Rule 144A under the Securities Act, as it may be amended from time to time,
or any successor to such Rule.

     “SEC” means the Securities and Exchange Commission.

     “Securities” means (x) the $143,750,000 aggregate principal amount of 2.4375% Convertible
Senior Subordinated Notes due 2027, or any of them, as amended or supplemented from time to time,
that are issued under this Indenture on the date of this Indenture.

     “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder, as in effect from time to time.

     “Securities Custodian” means the Trustee, as custodian with respect to the Securities in
global form, or any successor thereto.

     “Senior Indebtedness” means:

9

 

     (1) all Indebtedness of the Company outstanding under Credit Facilities and all Hedging
Obligations with respect thereto;

     (2) the Company’s existing 9% Senior Notes due 2011;

     (3) any other Indebtedness of the Company, unless the instrument under which such
Indebtedness is incurred expressly provides that it is on a parity with or subordinated in
right of payment to the Securities; and

     (4) all Obligations with respect to the items listed in the preceding clauses (1), (2)
and (3).

     Notwithstanding anything to the contrary in the preceding, senior indebtedness will not
include:

     (A) any liability for federal, state, local or other taxes owed or owing by the
Company; or

     (B) any Indebtedness of the Company to any of its subsidiaries or other affiliates.

     “Senior Subordinated Indebtedness” means any Indebtedness of the Company that specifically
provides that such Indebtedness is to have the same rank as the Securities in right of payment and
is not subordinated by its terms in right of payment to any Indebtedness or other Obligation of the
Company which is not Senior Indebtedness.

     “Significant Subsidiary” means, in respect of any Person, as of any date of determination, a
Subsidiary of such Person that would constitute a “significant subsidiary” as such term is defined
in Article 1, Rule 1-02(w) of Regulation S-X, promulgated under the Securities Act as in effect on
the date of this Indenture.

     “Subordinated Indebtedness” means any Indebtedness of a party (whether outstanding on the date
of this Indenture or thereafter incurred) that is subordinate or junior in right of payment to the
Securities pursuant to a written agreement to that effect.

     “Subsidiary” means, with respect to any Person:

     (1) any corporation, association, limited liability company or other business entity of
which more than 50% of the total voting power of shares of Capital Stock entitled (without
regard to the occurrence of any contingency) to vote in the election of directors, managers
or trustees of the corporation, association or other business entity is at the time owned or
controlled, directly or indirectly, by that person or one or more of the other subsidiaries
of that person (or a combination thereof); and

     (2) any partnership (a) the sole general partner or the managing general partner of
which is such person or a subsidiary of such person or (b) the only general
partners of which are that person or one or more subsidiaries of that person (or any
combination thereof).

10

 

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

     “Trading Day” means a day during which trading in securities generally occurs on the NYSE or,
if shares of Common Stock are not then listed on the NYSE, on the principal other United States
national or regional securities exchange on which shares of Common Stock are then listed or, if
shares of Common Stock are not then listed on a United States national or regional securities
exchange, in the principal other market on which shares of Common Stock are then traded or quoted.

     “Trading Price” means, with respect to the Securities on any date of determination, the
average of the secondary market bid quotations per $1,000 principal amount of Securities obtained
by the Trustee for a $2,000,000 principal amount of Securities at approximately 3:30 p.m., New York
City time, on such determination date from two independent nationally recognized securities dealers
selected by the Company, which may include one or more of the Initial Purchasers. If at least two
such bids cannot reasonably be obtained by the Trustee, but one such bid can reasonably be obtained
by the Trustee, then one bid shall be used. If the Trustee cannot reasonably obtain at least one
bid for a $2,000,000 principal amount of Securities from a nationally recognized securities dealer
or, in the reasonable judgment of the Company, the bid quotations are not indicative of the
secondary market value of the Securities, then the Trading Price per $1,000 principal amount of
Securities shall be deemed to be less than 98% of the product of the Closing Sale Price of shares
of Common Stock and the Applicable Conversion Rate on such determination date.

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

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

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

     Section 1.02. Other Definitions.

	 	 	 
	Term	 	Defined in Section
	“Additional Fundamental Change Shares”
	 	4.01(h)
	“Agent Members”
	 	2.01
	“Bankruptcy Law”
	 	7.01
	“Company Order”
	 	2.02
	“Company Notice”
	 	3.01
	“Conversion Agent”
	 	2.03

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	Term	 	Defined in Section
	“Depositary”
	 	2.01
	“Distribution Notice”
	 	4.01(c)
	“DTC”
	 	2.01
	“EDGAR”
	 	5.02(b)
	“Event of Default”
	 	7.01
	“Expiration Time”
	 	4.06
	“Legend”
	 	2.12
	“Make Whole Premium”
	 	4.01
	“Notice of Default”
	 	7.01
	“Paying Agent”
	 	2.03
	“Payment Blockage Notice”
	 	12.03
	“Primary Registrar”
	 	2.03
	“Principal Return”
	 	4.13
	“QIB”
	 	2.01
	“Receiver”
	 	7.01
	“Registrar”
	 	2.03
	“record date”
	 	4.06
	“Spin-Off”
	 	4.06(a)(3)
	“Stock Price”
	 	4.01(h)
	“tender offer”
	 	4.06

     Section 1.03. Trust Indenture Act Provisions.

     Whenever this Indenture refers to a provision of the TIA, that provision is incorporated by
reference in and made a part of this Indenture. This Indenture shall also include those provisions
of the TIA required to be included herein by the provisions of the Trust Indenture Reform Act of
1990.

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

     “indenture securities” means the Securities;

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

     “indenture to be qualified” means this Indenture;

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

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

     All other terms used in this Indenture that are defined in the TIA, defined by TIA reference
to another statute or defined by any SEC rule and not otherwise defined herein have the meanings
assigned to them therein.

12

 

     Section 1.04. Rules of Construction.

     Unless the context otherwise requires:

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

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

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

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

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

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

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

ARTICLE 2

THE SECURITIES

     Section 2.01. Form and Dating.

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

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

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     (b) Global Securities In General. The Securities issued in global form shall be
substantially in the form of Exhibit A attached hereto (including the Global Security Legend
thereon and the “Schedule of Exchanges of Securities” attached thereto). The Securities issued in
definitive form shall be substantially in the form of Exhibit A attached hereto (but without the
Global Security Legend thereon and without the “Schedule of Exchanges of Securities” attached
thereto). Each Global Security shall represent such of the Outstanding Securities as shall be
specified therein and each shall provide that it shall represent the aggregate amount of
Outstanding Securities from time to time endorsed thereon and that the aggregate amount of
Outstanding Securities represented thereby may from time to time be reduced or increased, as
appropriate, to reflect replacements, exchanges, purchases, redemptions, or conversions of such
Securities. Any adjustment of the aggregate principal amount of a Global Security to reflect the
amount of any increase or decrease in the amount of Outstanding Securities represented thereby
shall be made by the Trustee in accordance with instructions given by the Holder thereof as
required by Section 2.12 and shall be made on the records of the Trustee and the Depositary.

     Members of, or participants in, the Depositary (“Agent Members”) shall have no rights under
this Indenture with respect to any Global Security held on their behalf by the Depositary or under
the Global Security, and the Depositary (including, for this purpose, its nominee) may be treated
by the Company, the Trustee and any agent of the Company or the Trustee as the absolute owner and
Holder of such Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing
herein shall (1) prevent the Company, the Trustee or any agent of the Company or the Trustee from
giving effect to any written certification, proxy or other authorization furnished by the
Depositary or (2) impair, as between the Depositary and its Agent Members, the operation of
customary practices governing the exercise of the rights of a Holder of any Security.

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

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

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HEREIN. THIS SECURITY IS A
GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY IS
EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE
DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES
IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE
DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH
NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.”

     Section 2.02. Execution and Authentication.

     (a) The aggregate principal amount of Securities which may be authenticated and delivered
under this Indenture is unlimited. Initially, $143,750,000 aggregate principal amount of Initial
Securities shall be authenticated and delivered under the Indenture.

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

     (c) If an officer whose signature is on a Security no longer holds that office at the time the
Trustee authenticates the Security, the Security shall be valid nevertheless.

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

     (e) The Trustee shall authenticate and make available for delivery Securities for original
issue upon receipt of a written order or orders of the Company signed by an Officer of the Company
(a “Company Order”). The Company Order shall specify the amount of Securities to be authenticated,
shall provide that all such securities will be represented by a Restricted Global Security and the
date on which each original issue of Securities is to be authenticated.

     (f) The Trustee shall act as the initial authenticating agent. Thereafter, the Trustee may
appoint an authenticating agent reasonably acceptable to the Company to authenticate Securities.
An authenticating agent may authenticate Securities whenever the Trustee may do so. Each reference
in this Indenture to authentication by the Trustee includes authentication by such agent. An
authenticating agent shall have the same rights as an Agent to deal with the Company or an
Affiliate of the Company.

     (g) The Securities shall be issuable only in registered form without coupons and only in
denominations of $1,000 principal amount and any integral multiple thereof.

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     Section 2.03. Registrar, Paying Agent and Conversion Agent.

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

     (b) The Company shall enter into an appropriate agency agreement with any Agent not a party to
this Indenture, provided that the Agent may be an Affiliate of the Trustee. The agreement shall
implement the provisions of this Indenture that relate to such Agent. The Company shall notify the
Trustee of the name and address of any Agent not a party to this Indenture. If the Company fails
to maintain a Registrar, Paying Agent, Conversion Agent, or agent for service of notices and
demands in any place required by this Indenture, or fails to give the foregoing notice, the Trustee
shall act as such. The Company or any Affiliate of the Company may act as Paying Agent (except for
the purposes of Section 5.01 and Article 9).

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

     Section 2.04. Paying Agent to Hold Money in Trust.

     Prior to noon, New York City time, on each due date of the payment of principal of, or
interest (including Additional Interest, if any) on, any Securities, the Company shall deposit with
the Paying Agent a sum sufficient to pay such principal or interest so becoming due. Subject to
Section 9.02, a Paying Agent shall hold in trust for the benefit of Holders of Securities or the
Trustee all money held by the Paying Agent for the payment of principal of, or interest
(including Additional Interest, if any) on, the Securities, and shall notify the Trustee of
any failure by the Company (or any other obligor on the Securities) to make any such payment. If
the Company or an Affiliate of the Company acts as Paying Agent, it shall, before noon, New York
City time, on each due date of the principal of, or interest (including Additional Interest, if
any) on, any Securities, segregate the money and hold it as a separate trust fund. The Company at
any time may require a Paying Agent to pay all money held by it to the Trustee, and the Trustee may
at any time during the continuance of any Default, upon written request to a Paying Agent, require
such Paying Agent to pay forthwith to the Trustee all sums so held in trust by such Paying Agent.
Upon doing so, the Paying Agent (other than the Company) shall have no further liability for the
money.

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     Section 2.05. Lists of Holders of Securities.

     The Trustee shall preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of Holders of Securities. If the Trustee is not
the Primary Registrar, the Company shall furnish to the Trustee on or before each Interest Payment
Date and at such other times as the Trustee may request in writing, a list in such form and as of
such date as the Trustee may reasonably require of the names and addresses of Holders of
Securities.

     Section 2.06. Transfer and Exchange.

     (a) Subject to compliance with any applicable additional requirements contained in Section
2.12, when a Security is presented to a Registrar with a request to register a transfer thereof or
to exchange such Security for an equal principal amount of Securities of other authorized
denominations, the Registrar shall register the transfer or make the exchange as requested;
provided, however, that every Security presented or surrendered for registration of transfer or
exchange shall be duly endorsed or accompanied by an assignment form and, if applicable, a transfer
certificate each in the form included in Exhibit A, and completed in a manner satisfactory to the
Registrar and duly executed by the Holder thereof or its attorney duly authorized in writing. To
permit registration of transfers and exchanges, upon surrender of any Security for registration of
transfer or exchange at an office or agency maintained pursuant to Section 2.03, the Company shall
execute and the Trustee shall authenticate Securities of a like aggregate principal amount at the
Registrar’s request. Any exchange or transfer shall be without charge, except that the Company or
the Registrar may require payment of a sum sufficient to cover any tax or other governmental charge
that may be imposed in relation thereto (other than any such taxes or other governmental charge
payable upon exchange or transfer pursuant to Sections 2.10, 2.12(a), 3.04, 4.02(e), or 4.04).

     (b) Neither the Company, any Registrar nor the Trustee shall be required to exchange, issue or
register the transfer or conversion of (1)(A) in the event of any redemption in part, any Security
during a period beginning at the opening of business 15 days before any selection of Securities for
redemption and ending at the close of business on the earliest date on which the
relevant notice of redemption is deemed to have been given to all Holders of Securities to be
so redeemed, (B) register the transfer or conversion of any Security so selected for redemption, in
whole or in part, except the unredeemed portion of any Security being redeemed in part, or (2) any
Securities or portions thereof in respect of which a Fundamental Change Purchase Notice or an
Optional Repurchase Notice has been delivered and not withdrawn by the Holder thereof.

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

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

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

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

     Section 2.07. Replacement Securities.

     (a) If any mutilated Security is surrendered to the Company, a Registrar or the Trustee, and
the Company, a Registrar and the Trustee receive evidence to their satisfaction of the destruction,
loss or theft of any Security, and there is delivered to the Company, the applicable Registrar and
the Trustee such security or indemnity as will be required by them to save each of them harmless,
then, in the absence of notice to the Company, such Registrar or the Trustee that such Security has
been acquired by a bona fide purchaser, the Company shall execute, and upon its written request the
Trustee shall authenticate and deliver, in exchange for any such mutilated Security or in lieu of
any such destroyed, lost or stolen Security, a new Security of like tenor and principal amount,
bearing a number not contemporaneously outstanding.

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

     (c) Upon the issuance of any new Securities under this Section 2.07, the Company may require
the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed
in relation thereto as a result of any Securities, at the request of any Holder, being issued to a
Person other than such Holder and any other reasonable expenses (including the reasonable fees and
expenses of the Trustee or the Registrar) in connection therewith.

     (d) Every new Security issued pursuant to this Section 2.07 in lieu of any mutilated,
destroyed, lost or stolen Security shall constitute an original additional contractual obligation
of the Company, whether or not the mutilated, destroyed, lost or stolen Security shall be at any
time enforceable by anyone, and shall be entitled to all benefits of this Indenture equally and
proportionately with any and all other Securities duly issued hereunder.

     (e) The provisions of this Section 2.07 are (to the extent lawful) exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities.

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     Section 2.08. Outstanding Securities.

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

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

     (c) If a Paying Agent (other than the Company or an Affiliate of the Company) holds funds
sufficient in respect of the Outstanding Securities on a Fundamental Change Purchase Date, Optional
Repurchase Date, Redemption Date or the Final Maturity Date to pay the principal of, and unpaid
interest (including Additional Interest, if any) accrued on, Securities (or portions thereof)
payable on that date, then on and after such Fundamental Change Purchase Date, Optional Repurchase
Date, Redemption Date or Final Maturity Date, as the case may be, (i) such Securities (or portions
thereof, as the case may be) shall cease to be Outstanding, (ii) cash interest and Additional
Interest, if any, on them shall cease to accrue, and (iii) all rights of Holders of such Securities
will terminate except the right to receive the amount payable on that date.

     (d) Subject to the restrictions contained in Section 2.09, a Security does not cease to be
Outstanding because the Company or an Affiliate of the Company holds the Security.

     Section 2.09. Treasury Securities.

     In determining whether the Holders of the required aggregate principal amount of Securities
have concurred in any notice, direction, waiver or consent, securities owned by the Company or any
other obligor on the Securities or by any Affiliate of the Company or of such other obligor shall
be disregarded, except that, for purposes of determining whether the Trustee shall be protected in
relying on any such notice, direction, waiver or consent, only Securities which a Trust Officer of
the Trustee with responsibility for this Indenture actually knows are so owned shall be so
disregarded. Securities so owned which have been pledged in good faith shall not be disregarded if
the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with
respect to the Securities and that the pledgee is not the Company or any other obligor on the
Securities or any Affiliate of the Company or of such other obligor.

     Section 2.10. Temporary Securities.

     Until definitive Securities are ready for delivery, the Company may prepare and execute, and,
upon receipt of a Company Order, the Trustee shall authenticate and deliver, temporary Securities.
Temporary Securities shall be substantially in the form of definitive securities but may have
variations that the Company with the consent of the Trustee considers appropriate for temporary
Securities. Without unreasonable delay, the Company shall prepare and the Trustee shall
authenticate and deliver definitive Securities in exchange for temporary Securities.

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

     Section 2.11. Cancellation.

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

     Section 2.12. Legend; Additional Transfer and Exchange Requirements.

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

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

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

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

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

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

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

     (2) Notwithstanding any other provisions of this Indenture or the Securities, a Global
Security shall not be exchanged in whole or in part for a Security registered, and no
transfer of a Global Security in whole or in part shall be registered in the name of any
Person other than the Depositary or one or more nominees thereof; provided that a Global
Security may be exchanged for securities registered in the names of any person designated by
the Depositary in the event that (A) the Depositary has notified the Company that it is
unwilling or unable to continue as Depositary for such Global Security or such Depositary
has ceased to be a “clearing agency” registered under the Exchange

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Act, and a successor Depositary is not appointed by the Company within 90 days after
receiving such notice or becoming aware that the Depositary has ceased to be a “clearing
agency,” (B) an Event of Default has occurred and is continuing with respect to the
Securities, or (C) the Company, in its sole discretion, determines at any time that the
Securities shall no longer be represented by a Global Security. Any Global Security
exchanged pursuant to subclause (A) above shall be so exchanged in whole and not in part,
and any Global Security exchanged pursuant to subclause (B) above may be exchanged in whole
or from time to time in part as directed by the Depositary. Any Security issued in exchange
for a Global Security or any portion thereof shall be a Global Security; provided further
that any such Security so issued that is registered in the name of a Person other than the
Depositary or a nominee thereof shall not be a Global Security.

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

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

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

     (6) Neither Agent Members nor any other Persons on whose behalf Agent Members may act
shall have any rights under this Indenture with respect to any Global Security registered in
the name of the Depositary or any nominee thereof, or under any such Global Security, and
the Depositary or such nominee, as the case may be, may be treated by the Company, the
Trustee and any agent of the Company or the Trustee as the absolute owner and Holder of such
Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing herein
shall prevent the Company, the Trustee or any agent of the Company or the Trustee from
giving effect to any written certification, proxy or other authorization furnished by the
Depositary or such nominee, as the case may be, or impair, as between the Depositary, its
Agent Members and any other Person
on whose behalf an Agent Member may act, the operation of customary practices of such
Persons governing the exercise of the rights of a Holder of any Security.

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

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

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

Section 2.13 Withholding.

     At the maturity of the principal of the Securities, whether at Final Maturity or upon earlier
redemption of the Securities pursuant to Article 11 hereof or repurchase of Securities pursuant to
Section 3.01 or 3.02 hereof or otherwise, and as otherwise required by law, the Company may deduct
and withhold from the amount of consideration otherwise deliverable to such Holder the amount
required to be deducted and withheld under applicable law. Additionally, the Company may deduct
and withhold from any payment of interest (including Additional Interest, if any) on the Securities
otherwise deliverable to such Holder the amount required to be deducted and withheld under
applicable law.

     Section 2.14. CUSIP Numbers.

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

23

 

ARTICLE 3

REPURCHASE

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

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

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

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

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

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

     (4) the Fundamental Change Purchase Price;

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

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

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

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

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

24

 

     (10) the CUSIP number of the Securities.

     The Company shall deliver a copy of the Company Notice to the Trustee. The Company shall also
disseminate a press release through Dow Jones & Company, Inc. or Bloomberg Business News announcing
the occurrence of such Fundamental Change or publish such information in a newspaper of general
circulation in The City of New York, or on the web site of the Company, or through such other
public medium as the Company deems appropriate at that time.

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

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

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

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

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

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

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

     (1) the Holder’s name;

25

 

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

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

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

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

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

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

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

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

     (i) The Company may arrange for a third party to purchase any Securities for which it receives
a valid Fundamental Change Purchase Notice that is not withdrawn, in the manner and otherwise in
compliance with the requirements set forth in this Section 3.01 applicable to the repurchase right
with respect to the Securities. If a third party purchases any Securities under these
circumstances, then interest will continue to accrue on those Securities and those Securities will
continue to be Outstanding after the Fundamental Change Purchase Date and will be fungible with all
Securities then Outstanding. The third party subsequently may resell those purchased Securities to
other investors. In addition, the Company shall not be required to make

26

 

an offer to repurchase the Securities upon a Fundamental Change if a third party makes such
offer to repurchase the Securities in the manner, at the times and otherwise in compliance with the
requirements described in this Section 3.01 applicable to an offer to repurchase the Securities by
the Company and purchases all Securities validly tendered and not withdrawn.

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

     (a) Holders of Securities shall have the right to require the Company to repurchase in whole
or in part (in principal amounts of $1,000 or an integral multiple thereof), on each of January 15,
2014, January 15, 2017, and January 15, 2022 (each, an “Optional Repurchase Date”) for cash equal
to 100% of the principal amount of the Securities to be repurchased plus unpaid interest (including
Additional Interest, if any) accrued to, but excluding, the Optional Repurchase Date (such amount, the “Optional
Repurchase Price”), subject to satisfaction by or on behalf of the Holder of the requirements set
forth below.

     (b) On or before the 30th day prior to each Optional Repurchase Date, the Company shall
provide a written notice by first class mail to the Trustee, any Paying Agent and all Holders (and
to beneficial owners as required by applicable law). The notice shall include a form of Optional
Repurchase Notice to be completed by the Holder and shall state:

     (1) the Optional Repurchase Date;

     (2) the Optional Repurchase Price;

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

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

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

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

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

     (8) the CUSIP number of the Securities.

     The Company shall also disseminate a press release through Dow Jones & Company, Inc. or
Bloomberg Business News containing the information specified in such notice or publish that
information in a newspaper of general circulation in The City of New York, or on the web site
of the Company, or through such other public medium as the Company deems appropriate at that time.

27

 

     (c) A Holder may exercise its rights specified in this Section 3.02 upon delivery of a written
notice of repurchase (an “Optional Repurchase Notice”) to the Paying Agent during the period
beginning at any time from the opening of business on the date that is 30 days prior to the
applicable Optional Repurchase Date until the close of business on the third Business Day prior to
such Optional Repurchase Date, stating:

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

     (2) the portion of the principal amount of the Securities to be repurchased, in
integral multiples of $1,000; and

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

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

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

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

     (1) the Holder’s name;

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

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

28

 

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

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

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

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

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

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

     Section 3.03. Repayment to the Company.

     To the extent that the aggregate amount of cash deposited by the Company pursuant to Section
3.01 or 3.02 exceeds the aggregate Fundamental Change Purchase Price or Optional Repurchase Price,
as applicable, of the Securities or portions thereof that the Company is obligated to purchase,
then promptly after the Fundamental Change Purchase Date or Optional Repurchase Date, as
applicable, the Trustee or a Paying Agent, as the case may be, shall return any such excess cash to
the Company.

29

 

     Section 3.04. Securities Purchased in Part.

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

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

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

     Section 3.06. Purchase of Securities in Open Market.

     The Company or any affiliate of the Company may, to the extent permitted by applicable law, at
any time repurchase Securities in the open market, by tender at any price or by private agreement.
Any Security purchased by the Company or any affiliate of the Company (a) after the date that is
two years from the latest issuance of the Securities may, to the extent permitted by applicable
law, be reissued or sold or may be surrendered to the Trustee for cancellation or (b) on or prior
to the date referred to in clause (a) will be surrendered to the Trustee for cancellation. Any
securities surrendered to the Trustee for cancellation may not be reissued or resold by the Company
and will be canceled promptly in accordance with Section 2.11.

ARTICLE 4

CONVERSION

     Section 4.01. Conversion Privilege and Conversion Rate.

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

     (1) during any calendar quarter beginning after March 31, 2007, and only during such
calendar quarter, if, and only if, the Closing Sale Price per share of the
Common Stock for at least 20 Trading Days (whether or not consecutive) in the period of
the 30 consecutive Trading Days ending on the last Trading Day of the preceding calendar
quarter was more than 130% of the Conversion Price in effect on the applicable Trading Day;

30

 

     (2) if the Company distributes to all holders of Common Stock rights entitling them to
purchase, for a period expiring within 60 days of the date of issuance, shares of Common
Stock at less than the average of the per share Closing Sale Prices of the Common Stock for
the 10 consecutive Trading Days ending on the date immediately preceding the declaration
date of such distribution;

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

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

     (5) at any time on or after January 15, 2026, but prior to the close of business on the
second Business Day immediately preceding the Final Maturity Date;

     (6) during the five consecutive Trading Day period following any five consecutive
Trading Day period in which the Trading Price per $1,000 principal amount of Securities, as
determined following a reasonable request by a Holder in accordance with the procedures
described below in Section 4.01(e)(ii), for each day of that period was less than 98% of the
product of (i) the Closing Sale Price of the Common Stock for each day in that period and
(ii) the Applicable Conversion Rate;

     (7) a Holder may surrender for conversion any of the Securities called for redemption
at any time prior to the close of business on the third Business Day prior to the Redemption
Date, even if the Securities are not otherwise convertible at such time. The right to
convert Securities pursuant to this clause (7) will expire after the close of business on
the third Business Day prior to the Redemption Date unless the Company defaults in making
the payment due upon redemption. A Holder may convert fewer than all of its Securities so
long as the Securities converted are an integral multiple of $1,000 principal amount; or

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

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

31

 

     (c) In the case of a distribution contemplated by clauses (2) and (3) of Section 4.01(a), the
Company shall notify Holders and the Trustee at least 20 days prior to the
Ex-Dividend Date for such distribution (the “Distribution Notice”). Once the Company has
given the Distribution Notice, Holders may surrender their Securities for conversion at any time
until the earlier of the close of business on the last Business Day preceding the Ex-Dividend Date
or the Company’s announcement that such distribution will not take place. In the event of a
distribution contemplated by clauses (2) and (3) of Section 4.01(a), Holders may not convert the
Securities if the Holders may otherwise participate in such distribution to the same extent as if
the Securities had been converted into shares of Common Stock immediately prior to the time at
which eligibility is determined for such transaction without converting their Securities, other
than through adjustments contemplated by Section 4.06. The Company will provide written notice to
the Conversion Agent as soon as reasonably practicable of any anticipated or actual event or
transaction that will cause or causes the Securities to become convertible pursuant to clause (2)
or (3) of Section 4.01(a).

     (d) (i) In the case of a transaction contemplated by clause (4) of Section 4.01(a), Holders
may surrender Securities for conversion at any time from and including the day that is 15 Business
Days prior to the anticipated Fundamental Change Effective Date up to and including the close of
business on the Trading Day prior to the Fundamental Change Effective Date, subject to expiration
of a Holder’s conversion right with respect to any Securities submitted for repurchase. The
Company shall notify the Holders and Trustee as promptly as practicable following the date the
Company publicly announces such Fundamental Change, but in no event later than 15 Business Days
prior to the Fundamental Change Effective Date.

     (ii) In the case of a transaction contemplated by clause (8) of Section 4.01(a), Holders may
surrender Securities for conversion at any time from and including the date that is 15 Business
Days prior to the anticipated effective time of the transaction up to and including five Business
Days after the actual date of such transaction. The Company shall notify Holders as promptly as
practicable following the date it publicly announces such transaction (but in no event less than 15
Business Days prior to the anticipated effective time of such transaction).

     (e) (i) For each calendar quarter of the Company, beginning with the calendar quarter ending
March 31, 2007, the Conversion Agent on behalf of the Company will determine, on the first Business
Day following the last Trading Day of such calendar quarter, whether the Securities are convertible
pursuant to clause (1) of Section 4.01(a), and, if so, will notify the Company and the Trustee in
writing, to the extent the Trustee is not also serving as the Conversion Agent. Upon request of
the Conversion Agent, the Company shall provide, or cause to be provided to, the Conversion Agent
the Closing Sale Price of the Common Stock for the 30 consecutive Trading Days ending on the last
Trading Day of the preceding calendar quarter.

     (ii) The Trustee shall have no obligation to determine the Trading Price of the Securities and
whether the Securities are convertible pursuant to clause (6) of Section 4.01(a) unless the Company
requests such determination, and the Company shall have no obligation to make such request unless a
Holder of Securities provides the Company with reasonable evidence

32

 

that the Trading Price per $1,000 principal amount of Securities would be less than 98% of the
product of the Closing Sale Price of the Common Stock and the Applicable Conversion Rate over the
relevant period. At such time, the Company shall instruct the Trustee to determine the Trading
Price of the Securities beginning on the next Trading Day and on each successive Trading Day until
the Trading Price per $1,000 principal amount of the Securities is greater than or equal to 98% of
the product of the Closing Sale Price of the Common Stock and the Applicable Conversion Rate.

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

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

     (h) If a Fundamental Change occurs prior to January 21, 2014 as a result of a transaction
specified in any of clauses (1) through (4) of the definition thereof, and a Holder elects to
convert its Securities in connection with such Fundamental Change, then the Conversion Rate per
$1,000 principal amount of Securities otherwise in effect in respect of Securities that are
converted shall be increased by a number of additional shares of Common Stock (the “Additional
Fundamental Change Shares”) as described below. A conversion of Securities shall be deemed for
these purposes to be “in connection with” such a Fundamental Change if the notice of conversion of
the Securities is received by the Conversion Agent from and including the day that is 15 Business
Days prior to the anticipated Fundamental Change Effective Date up to and including the Trading Day
prior to the Fundamental Change Purchase Date. The number of Additional Fundamental Change Shares
shall be determined by reference to the table below and is based on the Fundamental Change
Effective Date and the price (the “Stock Price”) paid per share of Common Stock in such
transaction. If the holders of Common Stock receive only cash in the Fundamental Change, the Stock
Price shall be the cash amount paid per share of Common Stock in connection with the Fundamental
Change. Otherwise, the Stock Price shall be equal to the average Closing Sale Prices of the Common
Stock on the 10 consecutive Trading Days immediately preceding, but excluding, the applicable
Fundamental Change Effective Date.

     The Stock Prices set forth in the first row of the table (i.e., the column headers) shall be
adjusted as of any date on which the Conversion Rate of the Securities is adjusted, other than as
a result of an adjustment of the Conversion Rate by virtue of the provisions of this Section
4.01(h). The adjusted Stock Prices shall equal the Stock Prices applicable immediately prior to

33

 

such adjustment multiplied by a fraction, the numerator of which is the Conversion Rate immediately
prior to the adjustment giving rise to the Stock Price adjustment and the denominator of which is
the Conversion Rate as so adjusted. In addition, the number of Additional Fundamental Change
Shares shall be subject to adjustment in the same manner as the Conversion Rate pursuant to Section
4.06 hereof.

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

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Effective Date	 	$18.83	 	 	$20.00	 	 	$22.50	 	 	$25.00	 	 	$27.50	 	 	$30.00	 	 	$35.00	 	 	$40.00	 	 	$45.00	 	 	$50.00	 	 	$55.00	 	 	$60.00	 	 	$65.00	 	 	$70.00	 	 	$75.00	 
	December 8, 2006
	 	 	12.26	 	 	 	10.88	 	 	 	8.61	 	 	 	6.98	 	 	 	5.78	 	 	 	4.86	 	 	 	3.60	 	 	 	2.79	 	 	 	2.23	 	 	 	1.83	 	 	 	1.52	 	 	 	1.29	 	 	 	1.10	 	 	 	0.94	 	 	 	0.82	 
	January 15, 2008
	 	 	12.26	 	 	 	10.72	 	 	 	8.35	 	 	 	6.66	 	 	 	5.44	 	 	 	4.52	 	 	 	3.28	 	 	 	2.51	 	 	 	1.99	 	 	 	1.62	 	 	 	1.35	 	 	 	1.14	 	 	 	0.97	 	 	 	0.84	 	 	 	0.72	 
	January 15, 2009
	 	 	12.26	 	 	 	10.50	 	 	 	8.01	 	 	 	6.27	 	 	 	5.03	 	 	 	4.11	 	 	 	2.91	 	 	 	2.19	 	 	 	1.72	 	 	 	1.39	 	 	 	1.15	 	 	 	0.97	 	 	 	0.83	 	 	 	0.72	 	 	 	0.62	 
	January 15, 2010
	 	 	12.26	 	 	 	10.28	 	 	 	7.64	 	 	 	5.82	 	 	 	4.54	 	 	 	3.63	 	 	 	2.47	 	 	 	1.81	 	 	 	1.40	 	 	 	1.13	 	 	 	0.93	 	 	 	0.79	 	 	 	0.68	 	 	 	0.58	 	 	 	0.51	 
	January 15, 2011
	 	 	12.26	 	 	 	10.02	 	 	 	7.17	 	 	 	5.25	 	 	 	3.94	 	 	 	3.04	 	 	 	1.95	 	 	 	1.37	 	 	 	1.04	 	 	 	0.83	 	 	 	0.69	 	 	 	0.58	 	 	 	0.50	 	 	 	0.44	 	 	 	0.38	 
	January 15, 2012
	 	 	12.26	 	 	 	9.75	 	 	 	6.61	 	 	 	4.51	 	 	 	3.17	 	 	 	2.28	 	 	 	1.31	 	 	 	0.86	 	 	 	0.63	 	 	 	0.50	 	 	 	0.42	 	 	 	0.36	 	 	 	0.31	 	 	 	0.27	 	 	 	0.24	 
	January 15, 2013
	 	 	12.26	 	 	 	9.35	 	 	 	5.76	 	 	 	3.50	 	 	 	2.10	 	 	 	1.28	 	 	 	0.52	 	 	 	0.29	 	 	 	0.20	 	 	 	0.17	 	 	 	0.14	 	 	 	0.12	 	 	 	0.11	 	 	 	0.10	 	 	 	0.09	 
	January 21, 2014
	 	 	12.26	 	 	 	9.15	 	 	 	4.56	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 

     If the Stock Price or Fundamental Change Effective Date is not set forth on the table
above: (i) if the actual Stock Price on the Fundamental Change Effective Date is between two Stock
Prices on the table or the actual Fundamental Change Effective Date is between two dates on the
table, the amount of Additional Fundamental Change Shares will be determined by a straight-line
interpolation between the number of Additional Fundamental Change Shares set forth for the higher
and lower Stock Price amounts and the two dates, as applicable, based on a 365-day year, (ii) if
the Stock Price on the Fundamental Change Effective Date exceeds $75.00 per share of Common Stock,
subject to adjustment as set forth herein, no Additional Fundamental Change Shares will be issued
upon conversion, and (iii) if the Stock Price on the Fundamental Change Effective Date is less than
$18.83 per share of Common Stock, subject to adjustment as set forth herein, no Additional
Fundamental Change Shares will be issued upon conversion.

     Notwithstanding the foregoing paragraph, in no event will the Conversion Rate exceed 53.1067
per $1,000 principal amount of Securities, subject to adjustment in the manner set forth in Section
4.06(a) hereof.

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

     Section 4.02. Conversion Procedure.

     (a) To convert a Security, a Holder must (1) complete and manually sign the conversion notice
on the back of the Security and deliver such notice to a Conversion Agent, (2)

34

 

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

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

     (c) Holders of Securities surrendered for conversion (in whole or in part) during the period
from the close of business on any Regular Record Date to the opening of business on the next
succeeding Interest Payment Date will receive the semi-annual interest payable on such Securities
on the corresponding Interest Payment Date notwithstanding the conversion (such interest being
payable on the corresponding Interest Payment Date to the Holder of the Security as of the close of
business on the Regular Record Date). However, such Holders must deliver to the Conversion Agent
an amount in cash equivalent to such interest payment in order to convert their Securities;
provided, however, that no such payment shall be required to be made (1) if such Securities have
been called for redemption on a Redemption Date that is after such Regular Record Date and on or
prior to such Interest Payment Date, (2) if a Fundamental Change Purchase Date has been scheduled
that is after such Regular Record Date and on or prior to such Interest Payment Date, or (3) with
respect to overdue interest (including Additional Interest), if any overdue interest exists at the
time of conversion with respect to such Securities. Except as otherwise provided in this Section
4.02(c), no payment or adjustment will be made for accrued interest on a converted Security.

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

35

 

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

     Section 4.03. Fractional Shares.

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

     Section 4.04. Taxes on Conversion.

     If a Holder converts a Security and the Company elects to deliver Common Stock, the Company
shall pay any documentary, stamp or similar issue or transfer tax due on the issue or delivery of
shares of Common Stock upon such conversion. The Company shall also pay any such tax with respect
to cash received in lieu of fractional shares. The Holder shall pay any such tax which is due
because the Holder requests the shares to be issued or delivered in a name other than the Holder’s
name, in which case the Holder shall pay that tax prior to receipt of such Common Stock. The
Conversion Agent may refuse to deliver the certificate representing the Common Stock being issued
in a name other than the Holder’s name until the Conversion Agent receives a sum sufficient to pay
any tax which will be due because the shares are to be issued in a name other than the Holder’s
name. Nothing herein shall preclude any tax withholding required by law or regulation.

     Section 4.05. Company to Provide Stock.

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

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

36

 

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

     Section 4.06. Adjustment of Conversion Rate.

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

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

	 	 	 	 	 	 	 
	 

	 	CR1 = CR0 x
	 	OS1	 	 
	 

	 	 	 	 

OS0
	 	 

     where,

	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to the adjustment relating
to such event;
	 
	 	 	 	 	 	 
	 

	 	CR1
	 	=
	 	the new Conversion Rate in effect taking such event into account;
	 
	 	 	 	 	 	 
	 

	 	OS0
	 	=
	 	the number of shares of the Common Stock outstanding immediately prior to
such event; and
	 
	 	 	 	 	 	 
	 

	 	OS1
	 	=
	 	the number of shares of the Common Stock outstanding immediately after such
event.

Any adjustment made pursuant to this clause (1) shall become effective on the date that is
immediately after (x) the date fixed for the determination of shareholders entitled to
receive such dividend or other distribution or (y) the date on which such split or
combination becomes effective, as applicable. If any dividend or distribution described in
this clause (1) is declared but not so paid or made, the new Conversion Rate shall be
readjusted to the Conversion Rate that would then be in effect if the dividend or
distribution had not been declared.

     (2) If the Company issues to all holders of Common Stock any rights, warrants, options
or other securities entitling them for a period of not more than 60 days after the date of
issuance thereof to subscribe for or purchase shares of Common Stock, or issues to all
holders of Common Stock securities convertible into shares of Common Stock for a period of
not more than 60 days after the date of issuance thereof, in either case at an exercise
price per share of Common Stock or a conversion price per share of Common Stock less than
the Closing Sale Price of the Common Stock on the Business Day immediately preceding the
time of announcement of such issuance, the Conversion Rate will be adjusted based on the
following formula:

37

 

	 	 	 	 	 	 	 
	 

	 	 CR1 = CR0 x
	 	(OS0 + X)	 	 
	 

	 	 	 	 

(OS0 + Y)
	 	 

     where,

	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to the adjustment relating
to such event;
	 
	 	 	 	 	 	 
	 

	 	CR1
	 	=
	 	the new Conversion Rate taking such event into account;
	 
	 	 	 	 	 	 
	 

	 	OS0
	 	=
	 	the number of shares of the Common Stock outstanding immediately prior to
such event;
	 
	 	 	 	 	 	 
	 

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

	 	Y
	 	=
	 	the number of shares of the Common Stock equal to the quotient of (A) the
aggregate price payable to exercise such rights, warrants, options, other securities or
convertible securities divided by (B) the average of the Closing Sale Prices of the
Common Stock for the 10 consecutive Trading Days prior to the Business Day immediately
preceding the date of announcement for the issuance of such rights, warrants, options,
other securities or convertible securities.

For purposes of this paragraph (2), in determining whether any rights, warrants, options,
other securities or convertible securities entitle the holders to subscribe for or purchase,
or exercise a conversion right for, shares of Common Stock at less than the applicable
Closing Sale Price of the Common Stock, and in determining the aggregate exercise or
conversion price payable for such Common Stock, there shall be taken into account any
consideration received by the Company for such rights, warrants, options, other securities
or convertible securities and any amount payable on exercise or conversion thereof, with the
value of such consideration, if other than cash, to be determined by the Board of Directors
of the Company. If any right, warrant, option, other security or convertible security
described in this clause (2) is not exercised or converted prior to the expiration of the
exercisability or convertibility thereof, the new Conversion Rate shall be readjusted to the
Conversion Rate that would then be in effect if such right, warrant, option, other security
or convertible security had not been so issued.

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

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

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

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

38

 

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

	 	 	 	 	 	 	 
	 

	 	CR1 = CR0 x
	 	SP0	 	 
	 

	 	 	 	 

(SP0 – FMV)
	 	 

     where,

	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to the adjustment relating
to such event;
	 
	 	 	 	 	 	 
	 

	 	CR1
	 	=
	 	the new Conversion Rate taking such event into account;
	 
	 	 	 	 	 	 
	 

	 	SP0
	 	=
	 	the average of the Closing Sale Prices of the Common Stock for the 10
consecutive Trading Days prior to the Business Day immediately preceding the earlier of
the record date or the Ex-Dividend Date for such distribution; and
	 
	 	 	 	 	 	 
	 

	 	FMV
	 	=
	 	the fair market value (as determined in good faith by the Company’s Board of
Directors) of the shares of capital stock, evidences of indebtedness, assets or
property distributed with respect to each outstanding share of Common Stock on the
earlier of the record date or the Ex-Dividend Date for such distribution.

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

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

	 	 	 	 	 	 	 
	 

	 	CR1 = CR0 x
	 	(FMV0 + MP0)	 	 
	 

	 	 	 	 

MP0
	 	 

     where,

	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to the adjustment relating
to such event;
	 
	 	 	 	 	 	 
	 

	 	CR1
	 	=
	 	the new Conversion Rate taking such event into account;
	 
	 	 	 	 	 	 
	 

	 	FMV0
	 	=
	 	the average of the Closing Sale Prices of the capital stock or similar
equity interest distributed to holders of the Common Stock applicable to one share of
the Common Stock over the first 10 consecutive Trading Days after the effective date of
the Spin-Off; and

39

 

	 	 	 	 	 	 	 
	 

	 	MP0
	 	=
	 	the average of the Closing Sale Prices of the shares of Common Stock over
the first 10 consecutive Trading Days after the effective date of the Spin-Off.

An adjustment to the Conversion Rate made pursuant to the immediately preceding paragraph
will occur on the 10th Trading Day after the effective date of the Spin-Off. If any such
dividend or distribution described in this paragraph (3) is declared but not paid or made,
the new Conversion Rate shall be readjusted to be the Conversion Rate that would then be in
effect if such dividend or distribution had not been declared.

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

	 	 	 	 	 	 	 
	 

	 	CR1 = CR0 x
	 	SP0	 	 
	 

	 	 	 	 

SP0 – C
	 	 

     where,

	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to the adjustment relating
to such event;
	 
	 	 	 	 	 	 
	 

	 	CR1
	 	=
	 	the new Conversion Rate taking such event into account;
	 
	 	 	 	 	 	 
	 

	 	SP0
	 	=
	 	the average of the Closing Sale Prices of Common Stock for the 10
consecutive Trading Days prior to the Business Day immediately preceding the earlier of
the record date or the day prior to the Ex Dividend Date for such distribution; and
	 
	 	 	 	 	 	 
	 

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

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

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

	 	 	 	 	 	 	 
	 

	 	CR1 = CR0 x
	 	AC + (SP1 x OS1)	 	 
	 

	 	 	 	 

(SP1 x OS0)
	 	 

40

 

	 	 	 	 	 	 	 
	 

	 	where,	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to the adjustment relating
to such event;
	 
	 	 	 	 	 	 
	 

	 	CR1
	 	=
	 	the new Conversion Rate taking into account such event;
	 
	 	 	 	 	 	 
	 

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

	 	OS0
	 	=
	 	the number of shares of the Common Stock outstanding immediately prior to
the Expiration Time;
	 
	 	 	 	 	 	 
	 

	 	OS1
	 	=
	 	the number of shares of the Common Stock outstanding immediately after the
Expiration Time (after giving effect to the purchase or exchange of shares pursuant to
such tender or exchange offer); and
	 
	 	 	 	 	 	 
	 

	 	SP1
	 	=
	 	the average of the Closing Sale Prices of the Common Stock for the 10
consecutive Trading Days commencing on the Trading Day next succeeding the Expiration
Time.

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

     Any adjustment to the Conversion Rate made pursuant to this paragraph (5) shall become
effective on the date immediately following the Expiration Time. If the Company or one of
its Subsidiaries is obligated to purchase shares of Common Stock pursuant to any such tender
or exchange offer but is permanently prevented by applicable law from effecting any such
purchase or all such purchases are rescinded, the new Conversion Rate shall be readjusted to
be the Conversion Rate that would be in effect if such tender or exchange offer had not been
made.

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

     (c) For purposes of this Section 4.06, “record date” shall mean, with respect to any dividend,
distribution or other transaction or event in which the holders of Common Stock have the right to
receive any cash, securities or other property or in which the Common Stock (or
other applicable
security) is exchanged or converted into any combination of cash, securities or other property, the
date fixed for determination of shareholders entitled to receive such cash, security or other
property (whether or not such date is fixed by the Board of Directors or by statute, contract or
otherwise).

41

 

     (d) If the Company has in effect a rights plan while any Securities remain Outstanding,
Holders of Securities will receive, upon a conversion of Securities in respect of which the Company
has elected to deliver Net Shares, in addition to such Net Shares, rights under the Company’s
shareholder rights agreement unless, prior to conversion, the rights have expired, terminated or
been redeemed or unless the rights have separated from the Common Stock. If the rights provided
for in the rights plan adopted by the Company have separated from the Common Stock in accordance
with the provisions of the applicable shareholder rights agreement so that Holders of Securities
would not be entitled to receive any rights in respect of Common Stock that the Company elects to
deliver as Net Shares upon conversion of Securities, the Conversion Rate will be adjusted at the
time of separation as if the Company had distributed to all holders of Common Stock, evidences of
indebtedness or other assets or property pursuant to Section 4.06(a)(3) above, subject to
readjustment upon the subsequent expiration, termination or redemption of the rights. In lieu of
any such adjustment, the Company may amend such applicable shareholder rights agreement to provide
that upon a conversion of Securities the Holders will receive, in addition to shares of Common
Stock that the Company elects to deliver as Net Shares upon such conversion, the rights which would
have attached to such Common Stock if the rights had not become separated from the Common Stock
under such applicable shareholder rights agreement. To the extent that the Company adopts any
future shareholder rights agreement, upon a conversion of Securities in respect of which the
Company elects to deliver Common Stock as Net Shares, a Holder of Securities shall receive, in
addition to Common Stock, the rights under the future shareholder rights agreement whether or not
the rights have separated from the Common Stock at the time of conversion, and no adjustment will
be made in accordance with the provisions of Section 4.06(a)(3) or otherwise.

     (e) Notwithstanding the provisions set forth in Section 4.06(a), in no event shall the
Conversion Rate exceed 53.1067 per $1,000 principal amount of Securities as a result of an
adjustment pursuant to clause (4) or (5) of Section 4.06(a), subject to adjustment in the manner
set forth in clauses (1) through (3) of Section 4.06(a).

     Section 4.07. No Adjustment.

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

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

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

42

 

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

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

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

     (5) accumulated and unpaid dividends or distributions.

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

     Section 4.08. Notice of Adjustment.

     Whenever the Conversion Rate is required to be adjusted pursuant to this Indenture, the
Company shall promptly mail to Holders a notice of the adjustment and file with the Trustee an
Officers’ Certificate briefly stating the facts requiring the adjustment and the manner of
computing it. The Trustee shall forward the Company’s calculation to any Holder upon request
within 20 Business Days of the effective date of any adjustment. Failure to mail such notice or
any defect therein shall not affect the validity of any such adjustment. Unless and until the
Trustee shall receive an Officers’ Certificate setting forth an adjustment of the Conversion
Rate, the Trustee may assume without inquiry that the Conversion Rate has not been adjusted and
that the last Conversion Rate of which it has knowledge remains in effect.

     Section 4.09. Notice of Certain Transactions.

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

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

43

 

     In the case of a transaction contemplated by clauses (4) or (8) of Section 4.01(a), as
applicable, if the Company is a party to a consolidation, merger or binding share exchange pursuant
to which all shares of the Common Stock are exchanged for cash, securities or other property, then
at the effective time of the transaction any conversion of Securities and the Conversion Value will
be based on the kind and amount of cash, securities or other property that a Holder would have
received if such Holder had converted its Securities into Common Stock immediately prior to the
effective time of the transaction. For purposes of the foregoing, where a consolidation, merger or
binding share exchange involves a transaction that causes Common Stock to be converted into the
right to receive more than a single type of consideration based upon any form of stockholder
election, such consideration will be deemed to be the weighted average of the amounts and types of
consideration that the holders of Common Stock who affirmatively made such an election received in
such transaction or as a result of such event.

     Section 4.11. Withholding.

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

     Section 4.12. Trustee’s Disclaimer.

     The Trustee shall have no duty to determine when an adjustment under this Article 4 should be
made, how it should be made or what such adjustment should be, but may accept as conclusive
evidence of that fact or the correctness of any such adjustment, and shall be protected in relying
upon, an Officers’ Certificate, including the Officers’ Certificate with respect thereto which the
Company is obligated to file with the Trustee pursuant to Section 4.08. The Trustee makes no
representation as to the validity or value of any securities or assets issued upon conversion of
Securities.

     Section 4.13. Conversion Settlement.

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

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

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

     (b) The Company may elect to deliver any portion of the Net Amount in cash (the “Net Cash
Amount”) or Common Stock, and any portion of the Net Amount the Company elects to deliver in Common
Stock (the “Net Shares”) will be the sum of the Daily Share Amounts for

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each Trading Day during the
Applicable Conversion Period. Prior to the close of business on the second Trading Day following
the date on which Securities are tendered for conversion, the Company shall inform Holders of such
Securities of its election to pay cash for all or a portion of the Net Amount and, if applicable,
the portion of the Net Amount that will be paid in cash and the portion that will be delivered in
the form of Net Shares.

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

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

ARTICLE 5

COVENANTS

     Section 5.01. Payment of Securities.

     (a) The Company shall promptly make all payments in respect of the Securities on the dates and
in the manner provided in the Securities and this Indenture. A payment of principal or interest or
Additional Interest, if any, shall be considered paid on the date it is due if the Paying Agent
(other than the Company) holds by noon, New York City time, on that date money, deposited by or on
behalf of the Company sufficient to make the payment. Subject to Section 4.02, accrued but unpaid
interest on any Security that is payable, and is punctually paid or duly provided for, on any
Interest Payment Date shall be paid to the Person in whose name that Security is registered at the
close of business on the Regular Record Date for such interest at the office or agency of the
Company maintained for such purpose. Principal, interest, the Fundamental Change Purchase Price,
the Optional Repurchase Price, the Redemption Price and Additional Interest, if any, in each case
if payable, shall be considered paid on the applicable date due if on such date the Trustee or the
Paying Agent holds, in accordance with this Indenture, money sufficient to pay all such amounts
then due. The Company shall, to the fullest extent permitted by law, pay interest in immediately
available funds on overdue principal amount and interest at the annual rate borne by the Securities
compounded semiannually, which interest shall accrue from the date such overdue amount was
originally due to the date payment of such amount, including interest thereon, has been made or
duly provided for. All such interest shall be payable on demand.

     (b) Payment of the principal of, and interest (including Additional Interest, if any) on, the
Securities shall be made at the office or agency of the Company maintained for that purpose

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

     Section 5.02. SEC and Other Reports.

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

     (b) The Company intends to file the reports referred to in paragraph (a) above in this Section
5.02 hereof with the SEC in electronic form pursuant to Regulation S-T of the SEC using
the SEC’s Electronic Data Gathering, Analysis and Retrieval (“EDGAR”) system. Compliance with
the foregoing shall constitute delivery by the Company of such reports to the Trustee in compliance
with the provisions of Section 5.02(a) and TIA Section 314(a). The Trustee shall have no duty to
search for or obtain any electronic or other filings that the Company makes with the SEC,
regardless of whether such filings are periodic, supplemental or otherwise. Delivery of the
reports, information and documents to the Trustee pursuant to this Section 5.02(b) shall be solely
for the purposes of compliance with this Section 5.02(b) and with TIA Section 314(a).

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

     Section 5.03. Compliance Certificates.

     The Company shall deliver to the Trustee, within 120 days after the end of each fiscal year of
the Company (beginning with the fiscal year ending on December 31, 2006), an Officers’ Certificate
(signed by one of the Chairman of the Board, a Vice Chairman, the Chief Executive Officer, the
President, any Vice President, the Chief Operating Officer, the Chief Financial Officer or the
Chief Accounting Officer of the Company) as to the signer’s knowledge of the Company’s compliance
with all terms, conditions and covenants on its part contained in this Indenture and stating
whether or not the signer knows of any Default or Event of Default. If

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such signer knows of such a
Default or Event of Default, the Officers’ Certificate shall describe the Default or Event of
Default and the efforts to remedy the same. For the purposes of this Section 5.03, compliance
shall be determined without regard to any grace period or requirement of notice provided pursuant
to the terms of this Indenture.

     Section 5.04. Further Instruments and Acts.

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

     Section 5.05. Maintenance of Corporate Existence.

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

     Section 5.06. Rule 144A Information Requirement.

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

     Section 5.07. Stay, Extension and Usury Laws.

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

     Section 5.08. Payment of Additional Interest.

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

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     Section 5.09. Maintenance of Office or Agency.

     The Company will maintain an office or agency of the Trustee, Registrar and Paying Agent where
securities may be presented or surrendered for payment, where Securities may be surrendered for
registration of transfer, purchase or redemption and where notices and demands to or upon the
Company in respect of the Securities and this Indenture may be served. The Corporate Trust Office
shall initially be one such office or agency for all of the aforesaid purposes. The Company shall
give prompt written notice to the Trustee of the location, and of any change in the location, of
any such office or agency (other than a change in the location of the office of the Trustee). If
at any time the Company shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the address of the Trustee set forth
in Section 13.02.

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

     Section 5.10. No Layering of Indebtedness.

     The Company may not incur, create, issue, assume, Guarantee or otherwise become liable for any
Indebtedness that is subordinate or junior in right of payment to any of Senior Indebtedness and
senior in right of payment to the Securities.

ARTICLE 6

CONSOLIDATION; MERGER; CONVEYANCE; TRANSFER OR LEASE

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

     The Company may consolidate with, or sell, lease or otherwise convey all or substantially all
of its assets to, or merge with or into, any other Person, provided that:

     (1) the Company shall be the continuing corporation, or the successor person, if other
than the Company, formed by or resulting from any such consolidation or merger or which
shall have received the transfer of such assets by sale, lease or conveyance, shall either
directly or indirectly, expressly assume payment of the principal of, and interest on, the
Securities and the due and punctual performance and observance of all of the other covenants
contained in this Indenture, subject to the Company’s continuing obligations set forth in
this Indenture or otherwise;

     (2) if as a result of such transaction the Securities become convertible or
exchangeable into Common Stock or other Securities issued by a third party, such third party
assumes or fully and unconditionally guarantees all obligations under the Securities and
this Indenture;

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     (3) the successor entity formed by or resulting from any such consolidation or merger
or which shall have received the transfer of assets shall be a United States entity;

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

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

     Section 6.02. Successor Substituted.

     Upon any consolidation of the Company with, or merger of the Company into, any other Person or
any conveyance, transfer or lease substantially as an entity, of the properties and assets of the
Company and its Subsidiaries, taken as a whole, in accordance with Section 6.01, the successor
Person formed by such consolidation or into which the Company is merged or to which such
conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise
every right and power of, the Company under this Indenture with the same effect as if such
successor Person had been named as the Company herein, and thereafter, except in the case of a
lease, and except for obligations the predecessor Person may have under a supplemental indenture,
the predecessor Person shall be released from all obligations and covenants under this Indenture
and the Securities.

ARTICLE 7

DEFAULT AND REMEDIES

     Section 7.01. Events of Default.

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

     (1) a default for 30 days in the payment of any installment of interest on or any
Additional Interest on the Securities, whether or not prohibited by Article 12 of this
Indenture;

     (2) a default in the payment of the principal of the Securities when the Securities
become due and payable, whether on the Final Maturity Date or any earlier date of redemption
or repurchase or otherwise, and whether or not prohibited by Article 12 of this Indenture;

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

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

     (5) a default in the performance, or breach, of any of the other covenants contained in
this Indenture, continued for 60 days after written notice as provided pursuant to this
Indenture;

     (6) the Company’s failure to pay any final judgments in excess of $20.0 million in the
aggregate by the Company or one of its Subsidiaries and such judgments are not paid,
discharged or stayed for a period of 60 days;

     (7) a default by the Company in the payment of an aggregate principal amount exceeding
$20.0 million of any Indebtedness, such default having occurred after the expiration of any
applicable grace period and having resulted in the acceleration of the maturity of such
Indebtedness, but only if such Indebtedness is not discharged or such acceleration is not
rescinded or annulled, such default having continued for a period of 10 days after written
notice as provided pursuant to this Indenture; and

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

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

     (B) consents to the entry of an order for relief against it in an involuntary
case or proceeding or the commencement of any case against it;

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

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

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

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

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

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

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

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

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

     The term “Bankruptcy Law” means Title 11 of the United States Code (or any successor thereto)
or any similar federal or state law for the relief of debtors. The term “Receiver” means any
receiver, trustee, assignee, liquidator, sequestrator or similar official under any Bankruptcy Law.

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

     Section 7.02. Acceleration.

     If an Event of Default (other than an Event of Default specified in clause (8) or (9) of
Section 7.01(a)) occurs and is continuing, the Trustee may, by notice to the Company, or the
Holders of at least 25% in aggregate principal amount of the Securities then Outstanding may, by
notice to the Company and the Trustee, declare the principal amount and accrued but unpaid interest
(including Additional Interest, if any), through the date of declaration on all the Securities to
be immediately due and payable. Upon such a declaration, such principal amount and such accrued but
unpaid interest (including Additional Interest, if any), shall be due and payable immediately. If
an Event of Default specified in Section 7.01(a)(8) or (9) occurs in respect of the Company or any
Significant Subsidiary and is continuing, the principal amount of, and accrued but unpaid interest
(including Additional Interest, if any) on, all the Securities shall become and be immediately due
and payable without any declaration or other act on the part of the Trustee or any Holders of
Securities. At any time after such a declaration of acceleration with respect to the Securities
has been made but before a judgment or decree for payment of the money due has been obtained by the
Trustee as hereinafter in this Article provided, the Holders of 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 if:

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

     (A) all overdue installments of interest (including Additional Interest, if
any) payable in respect of all Outstanding Securities,

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

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

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

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

     Section 7.03. Other Remedies.

     (a) If an Event of Default occurs and is continuing, the Trustee may, but shall not be
obligated to, pursue any available remedy by proceeding at law or in equity to collect payment of
the principal amount of, and accrued but unpaid interest (including Additional Interest, if any)
on, the Securities or to enforce the performance of any provision of the Securities or this
Indenture.

     (b) The Trustee may maintain a proceeding even if it does not possess any of the Securities or
does not produce any of them in the proceeding. A delay or omission by the Trustee or any Holder
in exercising any right or remedy accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy is exclusive
of any other remedy. All available remedies are cumulative to the extent permitted by applicable
law.

     Section 7.04. Waiver of Defaults and Events of Default.

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

     Section 7.05. Control by Majority.

     The Holders of a majority in aggregate principal amount of the Securities then Outstanding may
direct the time method and place of conducting any proceeding for any remedy available to the
Trustee or exercising any trust or power conferred on it. However, the Trustee may refuse to
follow any direction that conflicts with law or this Indenture, that the Trustee
determines may be unduly prejudicial to the rights of another Holder or the Trustee, or that
may involve the Trustee in personal liability unless the Trustee is offered security or indemnity
satisfactory to it; provided, however, that the Trustee may take any other action deemed proper by
the Trustee which is not inconsistent with such direction.

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     Section 7.06. Limitations on Suits.

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

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

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

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

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

     (5) no direction inconsistent with such written request has been given to the Trustee
during such 60-day period by the Holders of a majority in aggregate principal amount of the
Securities then Outstanding.

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

     Section 7.07. Rights of Holders to Receive Payment and to Convert.

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

     Section 7.08. Collection Suit by Trustee.

     If an Event of Default described in clause (1) or (2) of Section 7.01(a) occurs and is
continuing, the Trustee may recover judgment in its own name and as trustee of an express trust
against the Company or another obligor on the Securities for the whole amount owing with respect to
the Securities and such further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel.

     Section 7.09. Trustee May File Proofs of Claim.

     The Trustee may file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for the

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

     Section 7.10. Priorities.

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

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

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

     (3) Third, the balance, if any, to the Company.

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

     Section 7.11. Undertaking for Costs.

     In any suit for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may
require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
fees and expenses, against any party litigant in the suit, having due regard to the merits and good
faith of the claims or defenses made by the party litigant. This Section 7.11 does not apply to a
suit made by the Trustee, a suit by a Holder pursuant to Section 7.07, or a suit by Holders of more
than 25% in aggregate principal amount of the Securities then Outstanding. This Section 7.11 shall
be in lieu of Section 315(e) of the TIA and such Section 315(e) is hereby expressly excluded from
this Indenture, as permitted by the TIA.

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ARTICLE 8

TRUSTEE

     Section 8.01. Obligations of Trustee.

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

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

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

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

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

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

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

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

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

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

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

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

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

     Section 8.02. Rights of Trustee.

     (a) Subject to Section 8.01:

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

     (2) Before the Trustee acts or refrains from acting, it may require an Officers’
Certificate or an Opinion of Counsel, which shall conform to Section 13.04(b). The Trustee
shall not be liable for any action it takes or omits to take in good faith in reliance on
such Officers’ Certificate or Opinion of Counsel.

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

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

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

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

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     (7) The Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or
other paper or document, but the Trustee, in its discretion, may make such further inquiry
or investigation into such facts or matters as it may see fit, and, if the Trustee shall
determine to make such further inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Company, personally or by agent or attorney at the sole
cost of the Company, and shall incur no liability or additional liability of any kind by
reason of such inquiry or investigation. The reasonable expense of every such examination
shall be paid by the Company or, if paid by the Trustee, shall be repaid by the Company upon
demand from the Company’s own funds.

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

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

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

     Section 8.03. Individual Rights of Trustee.

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

     Section 8.04. Trustee’s Disclaimer.

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

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     Section 8.05. Notice of Default or Events of Default.

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

     Section 8.06. Reports by Trustee to Holders.

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

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

     Section 8.07. Compensation and Indemnity.

     (a) The Company shall pay to the Trustee from time to time such compensation (as agreed to
from time to time by the Company and the Trustee in writing) for its services (which compensation
shall not be limited by any provision of law in regard to the compensation of a trustee of an
express trust). The Company shall reimburse the Trustee upon request for all reasonable
disbursements, expenses and advances incurred or made by it. Such expenses may include the
reasonable compensation, disbursements and expenses of the Trustee’s agents and counsel.

     (b) The Company shall indemnify the Trustee or any predecessor Trustee (which for purposes of
this Section 8.07 shall include its officers, directors, employees and agents) for, and hold it
harmless against, any and all loss, liability, claim, damage or expense including taxes (other than
franchise taxes and taxes based upon, measured by or determined by the income of the Trustee),
incurred by it arising out of or in connection with the acceptance or administration of its duties
under this Indenture or any action or failure to act as authorized or within the discretion or
rights or powers conferred upon the Trustee hereunder, including the reasonable costs and expenses
of the Trustee and its counsel in defending (including reasonable legal fees and expenses) itself
against any claim or liability in connection with the exercise or performance

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of any of its powers or duties hereunder. The Trustee shall notify the Company promptly
of any claim asserted against the Trustee of which a Responsible Officer has received written
notice for which it may seek indemnity. The Company need not pay for any settlement effected
without its prior written consent, which shall not be unreasonably withheld. Anything in this
Indenture to the contrary notwithstanding, in no event shall the Trustee be liable for special,
indirect or consequential loss or damage of any kind whatsoever (including but not limited to lost
profits), even if the Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action.

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

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

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

     Section 8.08. Replacement of Trustee.

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

     (b) If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for
any reason, the Company shall promptly appoint a successor Trustee. If the Company fails to
promptly appoint a successor Trustee, the Trustee shall have the right to choose a qualified
Trustee as successor, and the Company shall appoint such successor as Trustee. The resignation or
removal of a Trustee shall not be effective until a successor Trustee shall have delivered the
written acceptance of its appointment as described below.

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

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

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

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

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

     Section 8.09. Successor Trustee by Merger, Etc.

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

     Section 8.10. Eligibility; Disqualification.

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

     Section 8.11. Preferential Collection of Claims Against Company.

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

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ARTICLE 9

SATISFACTION AND DISCHARGE OF INDENTURE

     Section 9.01. Satisfaction and Discharge of Indenture.

     (a) This Indenture shall cease to be of further force and effect (except as to any surviving
rights of conversion, registration of transfer or exchange of Securities herein expressly provided
for and except as further provided below), and the Trustee, on demand of and at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and discharge of this
Indenture, when either:

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

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

provided that

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

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

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

     (b) Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company with respect to the conversion privilege and the Conversion Rate of the Securities pursuant
to Article 4, the obligations of the Company to the Trustee under Section 8.07 and, if money shall
have been deposited with the Trustee pursuant to clause (2) of Section 9.01(a), the provisions of
Sections 2.03, 2.04, 2.05, 2.06, 2.07, 2.12, 5.01 and 13.05, Article 4, and this Article 9, shall
survive such satisfaction and discharge.

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     Section 9.02. Application of Trust Money.

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

     Section 9.03. Repayment to Company.

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

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

     Section 9.04. Reinstatement.

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

ARTICLE 10

AMENDMENTS; SUPPLEMENTS AND WAIVERS

     Section 10.01. Without Consent of Holders.

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

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     (a) to evidence the succession or addition of another Person to the Company as obligor
under this Indenture;

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

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

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

     (e) to secure the Securities;

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

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

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

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

     (j) to conform the text of this Indenture or the Securities to any provision of the
“Description of Notes” section of the Offering Memorandum dated December 7, 2006 pursuant to
which the Securities were offered and sold, to the extent that such provision in the
“Description of Notes” section was intended to be a verbatim recitation of a provision of
this Indenture or the Securities;

     (k) to supplement any of the provisions of this Indenture to the extent necessary to
permit or facilitate satisfaction and discharge of the Securities under this Indenture,
provided that such action shall not adversely affect the interests of the Holders in any
material respect; or

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

     Section 10.02. With Consent of Holders.

     (a) The Company and the Trustee may amend or supplement this Indenture or the Securities with
the written consent of the Holders of at least a majority in aggregate principal amount of the
Securities then Outstanding and affected by such amendment or supplement

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(voting together as a single class). However, subject to Section 10.04, without the written
consent of each Holder affected, an amendment, supplement or waiver may not:

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

     (ii) reduce the principal amount of, the rate of interest (including Additional
Interest, if any) on the Securities;

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

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

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

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

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

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

     (b) Without limiting the provisions of Section 10.02(a) hereof, the Holders of a majority in
aggregate principal amount of the Securities then Outstanding may, on behalf of all the Holders of
all Securities, (i) waive compliance by the Company with the restrictive provisions of this
Indenture, and (ii) waive any past Default or Event of Default under this Indenture and its
consequences, except an uncured failure to pay when due the principal amount, accrued but unpaid
interest (including Additional Interest, if any) or Fundamental Change Purchase Price or Optional
Repurchase Price, or in the obligation to deliver Common Stock or cash, if any and as applicable,
or in respect of any provision which under this Indenture cannot be modified or amended without the
consent of the Holder of each Outstanding Security affected.

     (c) The written consent of Holders of at least 75% in aggregate principal amount of the
Securities then Outstanding is required for any amendment or modification to the provisions of
Article 12 of this Indenture that materially adversely affects the rights of Holders.

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     (d) After an amendment, supplement or waiver under this Section 10.02 becomes effective, the
Company shall promptly mail to the Holders affected thereby a notice briefly describing the
amendment, supplement or waiver. Any failure of the Company to mail such notice, or any defect
therein, shall not, however, in any way impair or affect the validity of any such amendment,
supplement or waiver.

     Section 10.03. Compliance with Trust Indenture Act.

     Every amendment to or supplement of this Indenture or the Securities shall comply with the TIA
as in effect at the date of such amendment or supplement.

     Section 10.04. Revocation and Effect of Consents.

     (a) Until an amendment, supplement or waiver becomes effective (as determined by the Company
and which may be prior to any such amendment, supplement or waiver becoming operative), a consent
to it by a Holder is a continuing consent by the Holder and every subsequent Holder of a Security
or portion of a Security that evidences the same debt as the consenting Holder’s Security, even if
notation of the consent is not made on any Security. However, any such Holder or subsequent Holder
may revoke the consent as to its Security or portion of a Security if the Trustee receives the
notice of revocation before the date the amendment, supplement or waiver becomes effective.

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

     Section 10.05. Notation on or Exchange of Securities.

     If an amendment, supplement or waiver changes the terms of a Security, the Trustee may require
the Holder of the Security to deliver it to the Trustee. The Trustee may place an appropriate
notation on the Security about the changed terms and return it to the Holder. Alternatively, if
the Company or the Trustee so determines, the Company in exchange for the Security shall issue and
the Trustee shall authenticate a new Security that reflects the changed terms.

     Section 10.06. Trustee to Sign Amendments, Etc.

     The Trustee shall sign any amendment or supplemental indenture authorized pursuant to this
Article 10 if the amendment or supplemental indenture does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. If it does, the Trustee may, in its sole discretion, but
need not sign it. In signing or refusing to sign such amendment or supplemental indenture, the
Trustee shall be provided with and, subject to Section 8.01, shall be fully protected in relying
upon, an Opinion of Counsel stating that such amendment or supplemental indenture is authorized or
permitted by this Indenture.

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ARTICLE 11

REDEMPTION

     Section 11.01. Redemption.

     (a) The Company shall not have the right to redeem any Securities prior to January 21, 2014.
No sinking fund is provided for the Securities.

     (b) The Company shall have the right to redeem the Securities, in whole or in part at any time
or from time to time, on or after January 21, 2014 upon not less than 30 nor more than 60 days’
prior written notice by mail to the Holders of the Securities, at a redemption price (“Redemption
Price”) for cash equal to 100% of the principal amount of the Securities to be redeemed plus any
accrued but unpaid interest (including Additional Interest, if any) to, but excluding, the
Redemption Date. If the Redemption Date is after the close of business on the Regular Record Date
for the payment of an installment of interest and before the related Interest Payment Date, then
the payment of interest becoming due on that date will be payable to the Holder of record at the
close of business on the relevant Record Date, and the Redemption Price will not include such
interest payment. If less than all the Securities are to be redeemed, the Trustee shall select the
Securities to be redeemed (in principal amounts of $1,000 and integral multiples thereof) on a pro
rata basis or by such other method the Trustee considers fair and appropriate or is required by the
Depositary for the Securities. The Trustee shall make the selection at least 30 days but not more
than 60 days before the Redemption Date from Outstanding Securities not previously called for
redemption. Securities and portions of the principal amount thereof selected for redemption shall
be in integral multiples of $1,000. The Trustee shall notify the Company promptly of the
Securities or portions of the principal amount thereof to be redeemed. If the Trustee selects a
portion of a Security for partial redemption and a Holder converts a portion of the same Security
before termination of the conversion right with respect to the portion of the Security so selected,
the converted portion of such Security shall be deemed to be from the portion selected for
redemption. Securities that have been converted during a selection of Securities to be redeemed
shall be treated by the Trustee as Outstanding for the purpose of such selection.

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

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

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

     (2) the then current Conversion Rate;

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

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

ARTICLE 12

SUBORDINATION

     Section 12.01. Agreement to Subordinate.

     The Company agrees, and each Holder by accepting a Security agrees, that the Indebtedness
evidenced by the Securities and the payment of the principal of, and interest (including Additional
Interest, if any) on, all Securities and all other amounts and claims owing on and with respect to
each and all of the Securities (including, but not limited to, the redemption price with respect to
the Securities called for redemption in accordance with Section 11.01 or the repurchase price with
respect to Securities submitted for repurchase in accordance with Section 3.01 or Section 3.02, as
the case may be, as provided in this Indenture) are subordinated in right of payment, to the extent
and in the manner provided in this Article 12, to the prior payment in full in cash of all Senior
Indebtedness (or as otherwise agreed to by the holders of Senior Indebtedness) (whether outstanding
on the date hereof or hereafter created, incurred, assumed or guaranteed), and that the
subordination is for the benefit of the holders of Senior Indebtedness; provided, however, that the
Securities, the Indebtedness represented thereby and the payment of the principal of, and interest
(including Additional Interest, if any) on, the Securities in all respects shall rank equally with
all existing or future Senior Subordinated Indebtedness of the Company, and prior to all existing
and future Subordinated Indebtedness of the Company.

     This Article 12 shall constitute a continuing offer to all Persons who, in reliance upon such
provisions, become holders of, or continue to hold Senior Indebtedness; and such provisions are
made for the benefit of the holders of Senior Indebtedness; and such holders are made obligees
hereunder and they or each of them may enforce directly such provisions.

     Section 12.02. Liquidation; Dissolution; Bankruptcy.

     (a) Upon any distribution to creditors of the Company in a liquidation or dissolution of the
Company, in a bankruptcy, reorganization, insolvency, receivership or similar proceeding relating
to the Company or its property, in an assignment for the benefit of creditors or in any marshalling
of the assets and liabilities of the Company:

     (1) the holders of Senior Indebtedness shall be entitled to receive payment in full in
cash or other payment satisfactory to holders of such Obligations due in respect of such
Senior Indebtedness (including interest after the commencement of any such proceeding at the
rate specified in the applicable Senior Indebtedness) before the Holders of Securities will
be entitled to receive any payment with respect to the Securities, and

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     (2) until all Obligations with respect to Senior Indebtedness are paid in full in cash
or in other payment satisfactory to such holders, any distribution to which the Holders of
Securities would be entitled shall be made to the holders of Senior Indebtedness.

     Section 12.03. Default on Designated Senior Indebtedness.

     (a) The Company may not make any payment of the principal amount, redemption price, cash
portion of the Conversion Value, Fundamental Change Purchase Price, Optional Repurchase Price, or
interest or other cash obligations with respect to any Securities, nor may the Company redeem or
acquire any Securities, if:

     (1) a payment default on Designated Senior Indebtedness (including, without
limitation, upon any acceleration of the maturity thereof) occurs and is continuing; or

     (2) any other default occurs and is continuing with respect to Designated Senior
Indebtedness that permits holders of such Designated Senior Indebtedness to accelerate its
maturity and the Trustee receives a written notice of such default (a “Payment Blockage
Notice”) from (A) the administrative agent for the lenders under the            Amended and
Restated Credit Agreement or (B) the holders of, or the representative for, any Designated
Senior Indebtedness.

     (b) Payments on, and redemption or repurchase of, the Securities may and will be resumed, if
so permitted by the other Sections of this Indenture:

     (1) in the case of a payment default with respect to Designated Senior Indebtedness,
upon the date on which such default is cured or waived or ceases to exist; and

     (2) in the case of a nonpayment default, upon the earliest of (x) the date on which
such nonpayment default is cured or waived (so long as no other default exists), (y) 179
days after the date on which the applicable Payment Blockage Notice is received, or (z) the
date on which the Trustee receives notice from a representative of Designated Senior
Indebtedness rescinding such Payment Blockage Notice, unless, in each case, the
maturity of any Designated Senior Indebtedness has been accelerated; provided that the terms
of this Indenture otherwise permit the payment, redemption or acquisition of the Securities
at that time.

     (c) No new Payment Blockage Notice may be delivered unless and until:

     (1) 360 days have elapsed since the delivery of the immediately prior Payment Blockage
Notice; and

     (2) all scheduled payments of principal, interest, and Additional Amounts, if any, on
the Securities that have come due have been paid in full in cash.

68

 

     (d) No nonpayment default that existed or was continuing on the date of delivery of any
Payment Blockage Notice to the Trustee will be, or be made, the basis for a subsequent Payment
Blockage Notice unless such default has been cured or waived for a period of not less than 90 days.

     Section 12.04. Acceleration of Securities.

     If payment of the Securities is accelerated because of an Event of Default, the Company will
promptly notify holders of Senior Indebtedness of the acceleration.

     Section 12.05. When Distribution Must Be Paid Over.

     (a) In the event that the Trustee or any Holder receives any payment of any Obligations with
respect to the Securities at a time when the Trustee or such Holder, as applicable, has actual
knowledge that such payment is prohibited by this Article 12, such payment shall be held by the
Trustee or such Holder, in trust for the benefit of, and shall be paid forthwith over and
delivered, upon proper written request, to, the holders of Senior Indebtedness or their
representative under the agreement pursuant to which Senior Indebtedness may have been issued, as
their respective interests may appear, which with respect to any and all Indebtedness outstanding
under the Amended and Restated Credit Agreement, shall mean the agent for such holders, for
application to the payment of all Obligations with respect to Senior Indebtedness remaining unpaid
to the extent necessary to pay such Obligations in full in accordance with their terms, after
giving effect to any concurrent payment or distribution to or for the holders of Senior
Indebtedness.

     (b) With respect to the holders of Senior Indebtedness, the Trustee undertakes to perform only
such obligations on the part of the Trustee as are specifically set forth in this Article 12, and
no implied covenants or obligations with respect to the holders of Senior Indebtedness shall be
read into this Indenture against the Trustee. The Trustee shall not be deemed to owe any fiduciary
duty to the holders of Senior Indebtedness, and shall not be liable to any such holders if the
Trustee shall pay over or distribute to or on behalf of holders or the Company or any other Person
money or assets to which any holders of Senior Indebtedness shall be entitled by virtue of this
Article 12, except if such payment is made as a result of the willful misconduct or negligence of
the Trustee.

     Section 12.06. Notice by Company.

     (a) The Company shall promptly notify the Trustee and the paying agent of any facts known to
the Company that would cause a payment of any Obligations with respect to the Securities to violate
this Article 12, but failure to give such notice shall not affect the subordination of the
Securities to the Senior Indebtedness as provided in this Article 12.

     (b) The Trustee shall be entitled to rely on the delivery to it of a written notice by a
person representing himself to be a holder of Senior Indebtedness (or a trustee or agent on behalf
of such holder) to establish that such notice has been given by a holder of Senior Indebtedness (or
a trustee or agent on behalf of any such holder). In the event that the Trustee determines in good
faith that further evidence is required with respect to the right of any Person as holder of Senior
Indebtedness to participate in any payment or distribution pursuant to this Article 12, the

69

 

Trustee may request such person to furnish evidence to the reasonable satisfaction of the
Trustee as to the amount of Senior Indebtedness held by such person, the extent to which such
person is entitled to participate in such payment or distribution and any other facts pertinent to
the rights of such Person under this Article 12, and if such evidence is not furnished, the Trustee
may defer any payment which it may be required to make for the benefit of such person pursuant to
the terms of this Indenture pending judicial determination as to the rights of such Person to
receive such payment.

     Section 12.07. Subrogation.

     After all Senior Indebtedness is paid in full in cash and until the Securities are paid in
full, Holders of Securities shall be subrogated (equally and ratably with all other Indebtedness
ranking pari passu with the Securities) to the rights of holders of Senior Indebtedness to receive
distributions applicable to Senior Indebtedness to the extent that distributions otherwise payable
to the Holders of Securities have been applied to the payment of Senior Indebtedness. A
distribution made under this Article 12 to holders of Senior Indebtedness that otherwise would have
been made to Holders of Securities is not, as between the Company and Holders, a payment by the
Company on the Securities.

     Section 12.08. Relative Rights.

     (a) This Article 12 defines the relative rights of Holders of Securities and holders of Senior
Indebtedness. Nothing in this Indenture shall:

     (1) impair, as between the Company and Holders of Securities, the            obligation of
the Company, which is absolute and unconditional, to pay principal of, and interest
(including Additional Interest, if any) on, the Securities in accordance with their terms;

     (2) affect the relative rights of Holders of Securities and creditors of the Company
other than their rights in relation to holders of Senior Indebtedness; or

     (3) prevent the Trustee or any Holder of Securities from exercising its available
remedies upon a Default or Event of Default, subject to the rights of holders and owners of
Senior Indebtedness to receive distributions and payments otherwise payable to Holders of
Securities.

     (b) If the Company fails because of this Article 12 to pay the principal amount of the
Securities, interest (including Additional Interest, if any), the redemption price with respect to
the Securities to be called for redemption in accordance with Section 11.01 or the repurchase price
with respect to Securities submitted for repurchase in accordance with Section 3.01 or Section
3.02, as the case may be, as provided in this Indenture as and when the same shall become due and
payable in accordance with their terms, such failure is still a Default or Event of Default.

70

 

     Section 12.09. Subordination May Not Be Impaired By Company.

     No right of any holder of Senior Indebtedness to enforce the subordination of the Indebtedness
evidenced by the Securities shall be impaired by any act or failure to act by the Company or any
Holder or by the failure of the Company or any Holder to comply with this Indenture.

     Section 12.10. Distribution or Notice to Representative.

     Whenever a distribution is to be made or a notice given to holders of Senior Indebtedness, the
distribution may be made and the notice given to their representative or agent.

     Section 12.11. Reliance on Judicial Orders or Certificates.

     Upon any payment or distribution of assets of the Company referred to in this Article 12, the
Trustee and the Holders of Securities shall be entitled to rely upon any order or decree made by
any court of competent jurisdiction or upon any certificate of such representative or of the
liquidating trustee or agent or other Person making any distribution to the Trustee or to the
Holders of Securities for the purpose of ascertaining the Persons entitled to participate in such
distribution, the holders of the Senior Indebtedness and other Indebtedness of the Company, the
amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other
facts pertinent thereto or to this Article 12.

     Section 12.12. Rights of Trustee and Paying Agent.

     Notwithstanding the provisions of this Article 12 or any other provision of this Indenture,
the Trustee shall not be charged with knowledge of the existence of any facts that would prohibit
the making of any payment or distribution by the Trustee, and the Trustee and the paying agent may
continue to make payments on the Securities, unless the Trustee shall have received at its
Corporate Trust Office of the Trustee at least three Business Days prior to the date of such
payment written notice of facts that would cause the payment of any Obligations with respect to the
Securities to violate this Article 12. Only the Company or a representative may give the notice.
Nothing in this Article 12 shall impair the claims of, or payments to, the Trustee under or
pursuant to Section 8.07 hereof.

     The Trustee in its individual or any other capacity may hold Senior Indebtedness with the same
rights it would have if it were not Trustee. Any agent may do the same with like rights.

     Section 12.13. Authorization to Effect Subordination.

     Each Holder of Securities, by the Holder’s acceptance thereof, authorizes and directs the
Trustee on such Holder’s behalf to take such action as may be necessary or appropriate to
effectuate the subordination as provided in this Article 12, and appoints the Trustee to act as
such Holder’s attorney-in-fact for any and all such purposes. If the Trustee does not file a
proper proof of claim or proof of debt in the form required in any proceeding referred to in
Section 7.03 hereof at least thirty (30) days before the expiration of the time to file such claim,
the credit agents are hereby authorized to file an appropriate claim for and on behalf of the
Holders of the Securities.

     Section 12.14. Payment Permitted If No Default.

     Nothing contained in this Article 12 or any other provision relating to subordination
elsewhere in this Indenture or in any of the Securities shall prevent the Company, except in the
circumstances described in Section 12.02 and Section 12.03, from making payments at any time of the
principal amount of the Securities, interest (including Additional Interest, if any), the
redemption price with respect to the Securities to be called for redemption in accordance with
Section 11.01 or the repurchase price with respect to Securities submitted for repurchase in
accordance with Section 3.01 or Section 3.02, as the case may be, as provided in this Indenture.

71

 

ARTICLE 13

MISCELLANEOUS

     Section 13.01. Trust Indenture Act Controls.

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

     Section 13.02. Notices.

     Any demand, authorization notice, request, consent or communication shall be given in writing
and delivered in person or mailed by first-class mail, postage prepaid, addressed as follows or
transmitted by facsimile transmission (confirmed by delivery in person or mail by first-class mail,
postage prepaid, or by guaranteed overnight courier) to the following facsimile numbers:

If to the Company, to:

Orbital Sciences Corporation

21839 Atlantic Blvd.

Dulles, Virginia 20166

Attention: General Counsel

Fax: (703) 406-5572

with a copy to:

Hogan & Hartson L.L.P.

Columbia Square

555 Thirteenth Street, NW

Washington, District of Columbia 20004

Attention: Eve Howard, Esq

Fax: (202) 637-5910

if to the Trustee, to:

The Bank of New York

101 Barclay Street – 8W

New York, New York 10286

Attention: Corporate Trust Administration

Fax: (212) 815-5707

72

 

     Such notices or communications shall be effective when received.

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

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

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

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

     Section 13.03. Communications by Holders with Other Holder.

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

     Section 13.04. Certificate and Opinion as to Conditions Precedent.

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

     (1) an Officers’ Certificate stating that, in the opinion of the signers, all
conditions precedent (including any covenants, compliance with which constitutes a condition
precedent), if any, provided for in this Indenture relating to the proposed action have been
complied with; and

     (2) an Opinion of Counsel stating that, in the opinion of such counsel, all such
conditions precedent (including any covenants, compliance with which constitutes a condition
precedent) have been complied with.

     (b) Each Officers’ Certificate and Opinion of Counsel with respect to compliance with a
condition or covenant provided for in this Indenture shall include:

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

73

 

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

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

     (4) a statement as to whether or not, in the opinion of such person, such condition or
covenant has been complied with; provided, however, that with respect to matters of fact an
Opinion of Counsel may rely on an Officers’ Certificate or certificates of public officials.

     Section 13.05. Record Date for Vote or Consent of Holders of Securities.

     (a) The Company (or, in the event deposits have been made pursuant to Section 9.01, the
Trustee) may set a record date for purposes of determining the identity of Holders entitled to vote
or consent to any action by vote or consent authorized or permitted under this Indenture, which
record date shall not be more than 30 days prior to the date of the commencement of solicitation of
such action. Notwithstanding the provisions of Section 10.04, if a record date is fixed, those
persons who were Holders of Securities at the close of business on such record date (or their duly
designated proxies), and only those persons, shall be entitled to take such action by vote or
consent or to revoke any vote or consent previously given, whether or not such persons continue to
be Holders after such record date.

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

74

 

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

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

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

     Section 13.06. Rules by Trustee, Paying Agent, Registrar and Conversion Agent.

     The Trustee may make reasonable rules (not inconsistent with the terms of this Indenture) for
action by or at a meeting of Holders. Any Registrar, Paying Agent or Conversion Agent may make
reasonable rules for its functions.

     Section 13.07.
Payment Dates Not On A Business Day.

     If an Interest Payment Date, Final Maturity Date, Redemption Date, Fundamental Change Purchase
Date or Optional Repurchase Date is not a Business Day, payment of principal or interest (including
Additional Interest, if any) otherwise required to be made on such date need not be made on such
date, but may be made on the next succeeding Business Day with the same force and effect as if made
on such Interest Payment Date, Final Maturity Date, Redemption Date, Fundamental Change Purchase
Date or Optional Repurchase Date, and no interest shall accrue with respect to such payment for the
intervening period. If a Regular Record Date is not a Business Day, the record date shall not be
affected.

     Section 13.08. Governing Law.

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

     Section 13.09. No Adverse Interpretation of Other Agreements.

     This Indenture may not be used to interpret another indenture, loan or debt agreement of the
Company or a Subsidiary of the Company. Any such indenture, loan or debt agreement may not be used
to interpret this Indenture.

     Section 13.10. No Security Interest Created.

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

75

 

     Section 13.11. Successors.

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

     Section 13.12. Multiple Counterparts.

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

     Section 13.13. Separability.

     If any provisions in this Indenture or in the Securities shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

     Section 13.14. Table of Contents, Headings, Etc.

     The table of contents, cross-reference sheet and headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not to be considered a part
hereof, and shall in no way modify or restrict any of the terms or provisions hereof.

     Section 13.15. Waiver of Jury Trial.

     EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THIS INDENTURE, THE SECURITIES OR THE TRANSACTION COVERED HEREBY.

     Section 13.16. 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 and
hardware) services; it being understood that the Trustee shall use reasonable efforts which are
consistent with accepted practices in the banking industry to resume performance as soon as
practicable under the circumstances.

[SIGNATURE PAGES FOLLOWS]

76

 

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

	 	 	 	 	 
	 	ORBITAL SCIENCES CORPORATION

 	 
	 	By:  	/s/
Michael R. Williams	 
	 	 	Name:  	Michael R. Williams	 
	 	 	Title:  	Senior Vice President and Treasurer	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	THE BANK OF NEW YORK, as Trustee

 	 
	 	By:  	/s/ Louis Young	 
	 	 	Name:  	Louis Young	 
	 	 	Title:  	Vice President	 

 

 

	 	 	 	 	 

EXHIBIT A

[FORM OF FACE OF SECURITY]

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

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

     (1) REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT), IS AWARE THAT THE TRANSFER TO IT IS BEING MADE IN RELIANCE ON
RULE 144A UNDER THE SECURITIES ACT AND IS ACQUIRING THIS SECURITY IN COMPLIANCE WITH RULE
144A UNDER THE SECURITIES ACT;

     (2) AGREES THAT IT WILL NOT, WITHIN TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE
DATE OF THIS SECURITY AND THE LAST DATE ON WHICH ORBITAL SCIENCES CORPORATION OR AN
AFFILIATE THEREOF WAS THE OWNER OF THIS SECURITY, RESELL OR OTHERWISE TRANSFER THIS SECURITY
OR THE COMMON STOCK ISSUABLE UPON CONVERSION OF SUCH SECURITY EXCEPT (A) TO ORBITAL
SCIENCES CORPORATION OR ANY OF ITS SUBSIDIARIES, (B) TO A QUALIFIED

 

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

A-1

 

INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, (C) PURSUANT
TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF
AVAILABLE), OR (D) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE
UNDER THE SECURITIES ACT AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH RESALE OR
TRANSFER; AND

     AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED (OTHER THAN A
TRANSFER PURSUANT TO CLAUSE 2(C) OR 2(D) ABOVE) A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND
IN CONNECTION WITH ANY TRANSFER OF THIS SECURITY WITHIN TWO YEARS AFTER THE LATER OF THE ORIGINAL
ISSUE DATE OF THIS SECURITY AND THE LAST DATE ON WHICH ORBITAL SCIENCES CORPORATION OR AN AFFILIATE
THEREOF WAS THE OWNER OF THIS SECURITY, THE HOLDER MUST CHECK THE APPROPRIATE BOX SET FORTH ON THE
REVERSE HEREOF RELATING TO THE MANNER OF SUCH TRANSFER AND SUBMIT THIS SECURITY TO THE TRUSTEE (OR
ANY SUCCESSOR TRUSTEE, AS APPLICABLE). IF THE PROPOSED TRANSFER IS PURSUANT TO CLAUSE 2(C) ABOVE,
THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE TRUSTEE (OR ANY SUCCESSOR TRUSTEE, AS
APPLICABLE), SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS ORBITAL SCIENCES
CORPORATION OR THE TRUSTEE MAY REASONABLY REQUIRE TO CONFIRM 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. THIS LEGEND WILL BE REMOVED UPON THE EARLIER OF THE TRANSFER OF THIS SECURITY
PURSUANT TO CLAUSE 2(C) OR 2(D) ABOVE OR THE EXPIRATION OF TWO YEARS FROM THE LATER OF THE ORIGINAL
ISSUE DATE OF THIS SECURITY AND THE LAST DATE ON WHICH ORBITAL SCIENCES CORPORATION OR AN AFFILIATE
THEREOF WAS THE OWNER OF THIS SECURITY.2

 

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

A-2

 

ORBITAL SCIENCES CORPORATION

2.4375% Convertible Senior Subordinated Notes due 2027

			
	No. ___
	 	CUSIP: 685564 AM 8 (Rule 144A)
	 
	 	685564 AN 6 (SEC Registered)

ISIN: US685564AM83

     Orbital Sciences Corporation, a State of Delaware corporation, promises to pay to Cede & Co.
or registered assigns the principal amount of                                          dollars ($[___]) on January 15,
2027.

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

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

Dated:                                         

SIGNATURE PAGE FOLLOWS

A-3

 

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

	 	 	 	 	 
	 	ORBITAL SCIENCES CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Dated:                                         

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

	 	 	 	 	 
	THE BANK OF NEW YORK, 

as Trustee
	 	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 	 	Authorized Signatory

	 

	 	 

A-4

 

[FORM OF REVERSE SIDE OF SECURITY]

ORBITAL SCIENCES CORPORATION

2.4375% CONVERTIBLE SENIOR SUBORDINATED NOTES DUE 2027

     This Security is one of a duly authorized issue of notes, debentures, bonds, or other
evidences of indebtedness of the Company (hereinafter called the “Securities”) of the series
hereinafter specified, all issued or to be issued under and pursuant to an Indenture, dated as of
December 13, 2006 between the Company and The Bank of New York, as trustee, and reference is hereby
made to the Indenture, and all modifications and amendments and indentures supplemental thereto
relating to the Securities, for a description of the rights, limitations of rights, obligations,
duties, and immunities thereunder of the Trustee, the Company and the Holders of the Securities and
the terms upon which the Securities are authenticated and delivered. Terms used herein without
definition and which are defined in the Indenture have the meanings assigned to them in the
Indenture.

1. INTEREST

     The Securities shall bear interest at the rate of 2.4375% per annum from December 13, 2006 or
from the most recent Interest Payment Date (as defined below) to which interest has been paid or
duly provided for, as the case may be, payable semi-annually in arrears on July 15 and January 15
of each year (each, an “Interest Payment Date”), commencing on July 15, 2007, until the principal
hereof is paid or duly made available for payment. Interest payable on each Interest Payment Date
shall equal the amount of interest accrued for the period commencing on and including the
immediately preceding Interest Payment Date in respect of which interest has been paid or duly
provided for (or commencing on and including December 13, 2006, if no interest has been paid or
duly provided for) and ending on and including the day preceding such Interest Payment Date.
Interest will cease to accrue on a Security upon its maturity, conversion or repurchase by the
Company at the option of a Holder or redemption. Interest on the Securities will be computed on
the basis of a 360-day year consisting of twelve 30-day months.

2. METHOD OF PAYMENT

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

A-5

 

3. PAYING AGENT, CONVERSION AGENT AND SECURITY REGISTRAR

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

4. REDEMPTION BY THE COMPANY

     The Company shall not have the right to redeem any Securities prior to January 21, 2014. The
Company shall have the right to redeem the Securities for cash, in whole or in part at any time or
from time to time, on or after January 21, 2014 at 100% of the principal amount of the Securities
to be redeemed plus any accrued but unpaid interest (including Additional Interest, if any) to, but
excluding, the Redemption Date (the “Redemption Price”).

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

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

     (a) Subject to the terms and conditions of the Indenture, a Holder shall have the right to
require the Company to repurchase all of its Securities, or any portion of the principal amount
thereof that is equal to $1,000 or an integral multiple thereof, on each of January 15, 2014,
January 15, 2017 and January 15, 2022 (each, an “Optional Repurchase Date”) for cash equal to 100%
of the principal amount of the Securities to be repurchased plus accrued but unpaid interest
(including Additional Interest, if any) to, but excluding, such Optional Repurchase Date (the
“Optional Repurchase Price”), upon delivery to the Paying Agent of an Optional Repurchase Notice
containing the information set forth in the Indenture.

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

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

A-6

 

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

6. CONVERSION

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

     The initial Conversion Rate shall be 40.8513 shares of Common Stock per $1,000 principal
amount of Securities, subject to adjustment in certain circumstances as specified in the Indenture.

     If a Holder wishes to exercise its conversion right, such Holder must deliver an irrevocable
duly completed and manually signed conversion notice, together, if the notes are in certificated
form, with the certificated security, to the conversion agent along with appropriate endorsements
and transfer documents, if required, or, if the Securities are in book-entry form, comply with
Applicable Procedures of the Depositary, and pay any transfer or similar tax, if required. The Conversion
Agent will, on the Holder’s behalf, convert the notes into cash and common shares, if any. Holders
may obtain copies of the required form of the conversion notice from the Conversion Agent.

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

7. RANKING AND SUBORDINATION

     The Securities are senior subordinated unsecured obligations of the Company. The payment of
the principal of, and interest (including Additional Interest, if any) on, the Securities will be
subordinated in right of payment to the prior payment in full in cash of existing and future Senior
Indebtedness of the Company; provided, however, that the Securities, the Indebtedness represented
thereby and the payment of the principal of, and interest (including Additional Interest, if any)
on, the Securities in all respects shall rank equally with all existing or future Senior
Subordinated Indebtedness of the Company, or prior to all existing and future Subordinated
Indebtedness of the Company. Each Holder of this Security, by accepting the same, (a) agrees to
and shall be bound by such provisions, (b) authorizes and directs the Trustee on such Holder’s
behalf to take such action as may be necessary or appropriate to effectuate the subordination so
provided and (c) appoints the Trustee to act as such Holder’s attorney-in-fact for any and all such
purposes

A-7

 

8. DENOMINATIONS; TRANSFER; EXCHANGE

     This Security is issuable only in fully registered, book-entry form, in denominations of
$1,000 and integral multiples thereof. This Security may be exchanged for a like aggregate
principal amount of Securities of other authorized denominations at the office or agency of the
Company in The City of New York, in the manner and subject to the limitations provided herein and
in the Indenture, but without the payment of any charge except for any tax or other governmental
charge imposed in connection therewith. Upon due presentment for registration of transfer of this
Security at the office or agency of the Company in The City of New York, one or more new Securities
of authorized denominations in an equal aggregate principal amount will be issued to the transferee
in exchange therefor, and bearing such restrictive legends as may be required by the Indenture, but
without payment of any charge except for any tax or other governmental charge imposed in connection
therewith.

9. PERSONS DEEMED OWNERS

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

10. ADDITIONAL RIGHTS OF HOLDERS

     In addition to the rights provided to Holders of Securities under the Indenture, Holders shall
have all the rights set forth in the Registration Rights Agreement, dated as of December 13, 2006,
among the Company and the Initial Purchasers named therein.

11. MODIFICATION AND AMENDMENT; WAIVER

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

12. DEFAULTS AND REMEDIES

     The Indenture sets forth events that constitute an Event of Default under the Indenture. If
an Event of Default shall occur and be continuing, there may be declared due and payable the
principal amount (together with accrued but unpaid interest) on the Securities in the manner and
with the effect provided in the Indenture. If certain bankruptcy or insolvency events occur and

A-8

 

continue with respect to the Company or a Significant Subsidiary, the Securities shall
automatically become due and payable in accordance with the terms of the Indenture.

14. CONSOLIDATION, MERGER, AND SALE OF ASSETS

     In the event of a consolidation or merger of the Company or a sale, lease or conveyance of all
or substantially all of the assets of the Company as described in Article 6 of the Indenture, the
successor entity to the Company shall succeed to and be substituted for the Company and may
exercise the rights and powers of the Company under the Indenture, and thereafter, except in the
case of a lease, the Company shall be relieved of all obligations and covenants under the Indenture
and the Securities.

15. TRUSTEE AND AGENT DEALINGS WITH THE COMPANY

     The Trustee, Paying Agent, Conversion Agent and Registrar under the Indenture, each in its
individual or any other capacity, may become the owner or pledgee of Securities and may otherwise
deal with and collect obligations owed to it by the Company or its Affiliates and may otherwise
deal with the Company or its Affiliates with the same rights it would have if it were not Trustee,
Paying Agent, Conversion Agent or Registrar.

17. CALCULATIONS IN RESPECT OF THE SECURITIES

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

18. GOVERNING LAW

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

A-9

 

ASSIGNMENT FORM

     To assign this Security, fill in the form below:

     I or we assign and transfer this Security to

      

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

 

 

 

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

and irrevocably appoint

 

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

	 	 	 	 	 
	 

	 	 	 	Your Signature
	 
	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 
	 	 
	 

	 	 	 	(Sign exactly as your name appears on the
	 

	 	 	 	other side of this Security)

* Signature guaranteed by:

By:                                         

 

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

A-10

 

CONVERSION NOTICE

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

     To convert only part of this Security, state the principal amount to be converted (must be
$1,000 or a integral multiple of $1,000): $ .

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

 

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

 

 

 

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

	 	 	 	 	 
	 

	 	 	 	Your Signature
	 
	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 
	 	 
	 

	 	 	 	(Sign exactly as your name appears on the
	 

	 	 	 	other side of this Security)

* Signature guaranteed by:

			
	
By:                                         

 

 

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

A-11

 

SCHEDULE OF EXCHANGES OF SECURITIES(1)

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

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

 

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

A-12

 

CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR REGISTRATION

OF TRANSFER OF RESTRICTED SECURITIES

Re: 2.4375% Convertible Senior Subordinated Notes due 2027 (the “Securities”) of Orbital Sciences
Corporation

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

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

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

     In connection with such request and in respect of each such Security, the Transferor does
hereby certify that the Transferor is familiar with transfer restrictions relating to the
Securities as provided in Section 2.12 of the Indenture dated as of December 13, 2006 between
Orbital Sciences Corporation and The Bank of New York, as trustee (the “Indenture”), and the
transfer of such Security is being made pursuant to an effective registration statement under the
Securities Act of 1933, as amended (the “Securities Act”) (check applicable box), or the transfer
or exchange, as the case may be, of such Security does not require registration under the
Securities Act because (check applicable box):

	 	 	 
	 

	 	Such Security is being transferred pursuant to an effective registration statement
under the Securities Act.
	 
	 	 
	 

	 	Such Security is being acquired for the Transferor’s own account, without transfer.
	 
	 	 
	 

	 	Such Security is being transferred to the Company or a Subsidiary (as defined in the
Indenture) of the Company.
	 
	 	 
	

 

	 	Such Security is being transferred to a person the Transferor reasonably believes is
a “qualified institutional buyer” (as defined in Rule 144A or any successor
provision thereto (“Rule 144A”) under the Securities Act) that is purchasing for its
own account or for the account of a “qualified institutional buyer”, in each case to
whom notice has been given that the transfer is being made in reliance on such Rule
144A, and in each case in reliance on Rule 144A.
	 
	 	 
	 

	 	Such Security is being transferred pursuant to and in compliance with an exemption
from the registration requirements under the Securities Act in accordance with Rule
144 (or any successor thereto) (“Rule 144”) under the Securities Act.
	 
	 	 
	 

	 	Such Security is being transferred to a non-U.S. Person in an offshore transaction
in compliance with Rule 904 of Regulation S under the Securities Act (or any
successor thereto).

A-13

 

	 	 	 
	
 

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

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

	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	(Insert Name of Transferor)

A-14

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