Document:

exv10w3

 

EXHIBIT 10.3

R&D AGREEMENT

This Agreement is made effective by and between Temple University — Of The Commonwealth System
of Higher Education (hereinafter referred to as “TEMPLE”), a corporation organized and
existing under the laws of the Commonwealth of Pennsylvania, having a principal place of
business at Broad Street and Montgomery Avenue, Philadelphia, Pennsylvania and Save The World
Air, Inc. (hereinafter referred to as “COMPANY”), a corporation organized and existing under
the laws of the State of Nevada, having a principal place of business at 5125 Lankershim
Boulevard, North Hollywood, California 91601.

WHEREAS, the parties have entered into certain license agreements effective                     
pertaining to the effect of electric fields on fuel droplet size and to the effect of electric
fields on crude oil viscosity ( hereinafter referred to collectively as the “LICENSES”);

WHEREAS, COMPANY wishes to fund research pertaining to LICENSED PRODUCT, as defined in the
LICENSES, and wishes to license intellectual property contained in the results of said
research;

WHEREAS, TEMPLE wishes to receive the aforementioned research funding from COMPANY and wishes
to disclose to COMPANY the results of said research; and

WHEREAS, COMPANY wishes to receive the results of the aforementioned research without
jeopardizing the patentability of inventions contained therein or TEMPLE’s proprietary rights
thereto;

NOW, THEREFORE, in consideration of the premises and of the covenants and obligations
hereinafter set forth, the parties, intending to be legally bound, agree as follows:

ARTICLE 1 — DEFINITIONS

The definitions of all terms used in the LICENSE are incorporated herein by reference.

“PROJECT” shall mean the research project pertaining to LICENSED PRODUCT that is
described in Exhibit A, which is attached hereto and is incorporated herein by reference.

“PROJECT PERIOD” shall mean the period beginning with the above written effective date and
ending twenty-four (24) months thereafter.

1.4 “PROJECT RESULTS” shall mean discoveries, inventions, know-how, testing data,
methods, techniques and other information, patentable or unpatentable, resulting from
COMPANY’S funding of the PROJECT during the PROJECT PERIOD.

			
	 	 	 
	Temple-SWA R&D Agreement
	 	Page 1 of 7 Pages

 

 

1.5 “PRINCIPAL INVESTIGATOR” shall mean Dr. Rongjia Tao, designated by TEMPLE to
direct the PROJECT and to serve as the contact person for COMPANY on all technical matters
relating to the PROJECT.

1.6 “PROJECT PATENT” shall mean an application filed by TEMPLE for PROJECT
RESULTS, and any patents issuing therefrom.

1.7 “OPTION PERIOD” shall mean the period beginning with the above written effective date
and ending six (6) months after the end of the PROJECT PERIOD.

ARTICLE 2 — SCOPE

2.1 The work to be carried out under the PROJECT pertains to LICENSED PRODUCT and is
described in Exhibit A, which is attached hereto and is incorporated herein by reference. The
PRINCIPAL INVESTIGATOR shall direct the PROJECT and control the manner of its
performance.

2.2 TEMPLE shall make reasonable efforts to complete the PROJECT. However, TEMPLE
makes no warranties as to the completion of the PROJECT or the achievement of any particular
goal.

ARTICLE 3 — FUNDING

3.1 COMPANY shall pay five hundred thousand dollars ($500,000) to TEMPLE to fund the
PROJECT during the PROJECT PERIOD, as outlined in the budget incorporated in Exhibit A,
attached hereto and incorporated herein by reference.

3.2 COMPANY shall provide its funding pursuant to Paragraph 3.1 in eight (8) non-refundable
installments, as follows: (i) one hundred twenty three thousand five hundred dollars ($123,500)
no later that (30) thirty days from the effective date of this Agreement and (ii) fifty three
thousand seven hundred fifty dollars ($53,750) every three (3) months thereafter until fully paid.
Checks shall be made to “Temple University” (with the name of the PRINCIPAL
INVESTIGATOR shown for reference purposes) and sent to the attention of Business Manager
at the address shown in Paragraph 6.5. If at any time during the Project Period Dr. Tao should
become unavailable to perform the duties of the principal investigator for the Project. TEMPLE
shall give STWA reasonable notice thereof, which notice shall be given no later than 30 days
after TEMPLE learns of Dr. Tao’s unavailability. If another principal investigator reasonably
acceptable to STWA is not promptly engaged by TEMPLE, STWA shall have the right to
terminate this Agreement, STWA shall have to right to elect to terminate this Agreement, and
upon such termination, STWA shall have no further obligations pursuant to Article 3 of this
Agreement to make payments not then due in accordance with the provisions such Article 3.

			
	 	 	 
	Temple-SWA R&D Agreement
	 	Page 2 of 7 Pages

 

 

ARTICLE 4 — OWNERSHIP RIGHTS

4.1 The entire right and title in all PROJECT RESULTS shall belong to Temple.

4.2 At any time during the OPTION PERIOD, TEMPLE may propose in writing to COMPANY
the filing of an application for a PROJECT PATENT. If COMPANY agrees in writing to such
filing within sixty (60) days of COMPANY’S receipt of the proposal, such PROJECT PATENT
shall be subject to the terms of Paragraphs 5.1 and 5.2, and shall be hereinafter referred to as an
“OPTION PATENT”. However, if COMPANY fails to agree in writing to such filing within
sixty (60) days of COMPANY’S receipt of the proposal, such PROJECT PATENT shall not be
deemed an OPTION PATENT and shall not be subject to any rights or obligations of
COMPANY hereunder or under the LICENSE.

4.3 At any time during the OPTION PERIOD, COMPANY may require in writing that
TEMPLE file an application for a PROJECT PATENT in connection with which TEMPLE has
not made a proposal to COMPANY pursuant to Paragraph 4.2, and such PROJECT PATENT
shall be deemed an OPTION PATENT subject to Paragraphs 5.1 and 5.2.

4.4 Except as otherwise provided in Paragraphs 4.2, 4.3 and 4.6, TEMPLE, in consultation with
COMPANY but in TEMPLE’s sole discretion, shall diligently prepare, file and prosecute
applications for all OPTION PATENTS during the OPTION PERIOD or, for OPTION
PATENTS that are subject to the negotiating provisions of Paragraph 5.2, during the OPTION
PERIOD and six (6) months thereafter.

4.5 COMPANY shall reimburse TEMPLE, within thirty (30) days of receipt of a detailed
invoice therefor, for all costs and expenses incurred by TEMPLE pursuant to Paragraph 4.4.
TEMPLE, in its sole discretion, may elect to have its patent counsel submit such invoices directly
to COMPANY, in which case COMPANY shall pay TEMPLE’s patent counsel directly.

4.6 In the event that COMPANY notifies TEMPLE in writing that it will stop paying the costs
and expenses with respect to any OPTION PATENT, TEMPLE, at its option, may assume the
obligation of supporting such OPTION PATENT, and COMPANY’s rights and obligations
thereto under this Agreement shall immediately terminate. Termination of COMPANY’S rights
and obligations with respect to an OPTION PATENT shall in no way affect COMPANY’S rights
and obligations to any other OPTION PATENT.

ARTICLE 5 — LICENSE AND OPTION RIGHTS

5.1 At any time during the OPTION PERIOD, upon written notice thereof to TEMPLE, COMPANY may
elect to add any OPTION PATENT to PATENT RIGHTS (as defined in the LICENSE) for all purposes
of the LICENSE provided, however, that the exercise of any rights granted under such
OPTION PATENT would have infringed, absent the LICENSE, at least one

			
	 	 	 
	Temple-SWA R&D Agreement
	 	Page 3 of 7 Pages

 

 

VALID CLAM within the PATENT RIGHTS in effect prior to the receipt of the notice by
TEMPLE. If COMPANY fails to make an election as provided in the preceding sentence with
respect to any OPTION PATENT, all of COMPANYs rights and obligations thereto shall immediately
terminate, and TEMPLE shall be free to license such OPTION PATENT to others.

5.2 At any time during the OPTION PERIOD, upon written notice thereof to TEMPLE, COMPANY may
elect to begin negotiating for an exclusive worldwide license under any OPTION PATENT
provided, however, that the exercise of any rights granted under such OPTION PATENT
would not have infringed, absent the LICENSE, any VALID CLAIM within the PATENT RIGHTS (as
defined in the LICENSE) in effect prior to the receipt of the notice by TEMPLE. If after
negotiating in good faith for six (6) months the parties are unable to enter into a mutually
acceptable license agreement for any OPTION PATENT, all of CONPANY’s rights and obligations
thereto shall immediately terminate, and TEMPLE shall be free to license such OPTION PATENT to
others.

     ARTICLE 6 — MISCELLANEOUS

6.1 Except for the LICENSE, this Agreement constitutes the entire understanding of the parties
with respect to the matters herein contained and each acknowledges and agrees that there are no
warranties, representations or understandings between them other than those expressly set forth
herein. Each party warrants and represents that the terms of this Agreement are not inconsistent
with any other contractual or legal obligations it may have. This Agreement may be modified
only by written consent signed by both parties.

6.2 The nghts and duties of the parties shall be governed by the laws of the Commonwealth of
Pennsylvania. The parties agree that any dispute arising out of this Agreement may be resolved
by recourse to the courts of the Commonwealth of Pennsylvania or the United States District
Court for the Eastern District of Pennsylvania.

6.3 If any litigation or other legal proceeding relating to this Agreement occurs, the prevailing
party shall be entitled to recover from the other party (in addition to any other relief awarded or
granted) its reasonable costs and expenses, including attorney’s fees, incurred in the proceedings.

6.4 This Agreement is binding upon the parties hereto. The terms and conditions of Article 4
and Article 5 shall survive expiration or termination of this Agreement.

6.5 Any payment, notice, report, or other communication required hereunder shall be sent to the
parties at the addresses below:

	 	 	 	 	 	 	 
	 

	 	To TEMPLE:
	 	Office of Technology Transfer
	 	 
	 

	 	 	 	Temple University (083-45)	 	 
	 

	 	 	 	 1601 N. Broad Street, Room 406	 	 
	 

	 	 	 	Philadelphia, PA 19122-6099	 	 

			
	 	 	 
	Temple-SWA R&D Agreement
	 	Page 4 of 7 Pages

 

 

	 	 	 	 	 	 	 
	 

	 	To LICENSEE:
	 	Bruce McKinnon, Chief Executive Officer
	 	 
	 

	 	 	 	Save the World Air, Inc. 	 	 
	 

	 	 	 	5125 Lankershim Boulevard 	 	 
	 

	 	 	 	Los Angeles, California 91601	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	With copies to:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Lance Jon Kimmel	 	 
	 

	 	 	 	SEC Law Firm	 	 
	 

	 	 	 	11693 San Vicente Boulevard, Suite 357	 	 
	 

	 	 	 	Los Angeles, CA 90049	 	 

			
	 	 	 
	Tcmple-SWA R&D Agreement
	 	Page 5 of 7 Pages

 

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly
authorized representatives the day and year written below.

Temple University — Of The Commonwealth System of Higher Education:

	 	 	 	 	 	 	 	 	 	 	 
	BY

	 	
	 	 
	 	DATE
	 	 
	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	Susan J. Karakantas

Interim Treasurer	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Attest:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By

	 	
	 	 
	 	 
	 	 
	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	JANET CARRUTH

ASSISTANT SECRETARY	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Save the World Air, Inc.:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By

	 	/s/ Bruce McKinnon	 	 
	 	DATE
	 	February 2, 2007	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Bruce McKinnon

Chief Executive Officer	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Attest:
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	/s/ Jerry Joves	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	Secretary	 	 	 	 	 	 	 	 

IN ACKNOWLEDGMENT OF HAVING READ AND UNDERSTOOD THE FOREGOING:

	 	 	 	 	 	 	 	 	 	 	 
	BY

	 	 	 	 	 	DATE
	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Principal Investigator	 	 	 	 	 	 	 	 

			
	 	 	 
	Temple-SWA R&D Agreement
	 	Page 6 of 7 Pages

 

 

EXHIBIT A

Dr. Rongjia Tao will be the principal investigator for this project and such involvement by
Dr. Tao in this project is a material inducement to STWA to enter into and perform its
obligations under this R&D Agreement. Temple University will perform research, development,
and consulting towards the realization of the following two commercial products: (1) Device
utilizing electric field to improve the fuel injection in engines for diesel, kerosene, and
gasoline; (2) Device utilizing electric or magnetic field to reduce crude oil viscosity and
improve crude oil flow in pipelines.

Performance period: Two years, starting on the
Effective Date

Tasks to be performed:

	 	1.	 	Design and manufacture a prototype device for STWA, which utilizes electric field
to improve
diesel injection in engines. Test the device and determine the droplet size
distribution in the fuel
injection, compare the results with the test on engine at STWA, and make necessary
changes for
the device.
	 
	 	2.	 	Design and manufacture a prototype device for STWA, which utilizes electric field
to improve
gasoline injection in engines. Test the device and determine the droplet size
distribution in the fuel
injection, compare the results with the test on engine at STWA, and make necessary
changes for
the device.
	 
	 	3.	 	Design and manufacture a prototype device for STWA, which utilizes electric field
to improve
kerosene injection in engines. Test the device and determine the droplet size
distribution in the
fuel injection, compare the results with the test on engine at STWA, and make necessary
changes
for the device.
	 
	 	4.	 	Design a device for STWA, which utilizes electric field to reduce crude oil
viscosity for crude oil
flow in pipelines.
	 
	 	5.	 	In cooperation with STWA, manufacture the device and test it in laboratory and on
pipelines with
asphalt-base or mixed base crude oil.
	 
	 	6.	 	Design a device for STWA, which utilizes magnetic field to reduce crude oil
viscosity for crude oil
flow in pipelines.
	 
	 	7.	 	In cooperation with STWA, manufacture the device and test is in laboratory and on
pipelines with
paraffin-base crude oil.

All tasks are to be performed on a reasonable efforts
basis.

Deliverables and Due Dates

	 	 	 	 	 
	1.

	 	Prototype device for diesel
	 	1 week after Effective Date
	2.

	 	1st Quarterly Report (about fuel injection for diesel)
	 	3/31/2007
	3.

	 	2nd Quarterly Report (about fuel injection for gasoline)
	 	6/30/2007
	4.

	 	3rd Quarterly Report (about fuel injection for kerosene)
	 	9/30/2007
	5.

	 	4th Quarterly Report (about design of the electric device for pipelines)
	 	12/31/2007
	6.

	 	5th Quarterly Report (about tests with asphalt- and mixed base crude oil)
	 	3/31/2008
	7.

	 	6th Quarterly Report (about the magnetic device for pipelines)
	 	6/30/2008
	8.

	 	7th Quarterly Report (about tests with paraffin-base crude oil)
	 	9/30/2008
	9.

	 	Final report (comprehensive report)
	 	12/31/2008
	 
	 	 	 	 

			
	Temple-SWA R&D Agreement
	 	Page 7 of 7 Pages

 

 

Budget:

	 	 	 	 	 
	 
	 	 	 	 
	Year 1
	 	 	 	 
	Labor Costs:
	 	 	 	 
	Three summer months (July-September) for Dr. Tao 
	 	$	47,277	 
	12 month salary for postdoctoral fellow 
	 	$	48,000	 
	12 month salary for one graduate student
	 	$	20,400	 
	3 month salary (part-time) for one technician
	 	$	12,000	 
	Fringe Benefits 
	 	$	18,532	 
	 
	 	 	 	 
	Equipment:
	 	 	 	 
	Laser Scattering system to measure particle size distribution
	 	$	70,000	 
	 
	 	 	 	 
	Travel
	 	$	6,000	 
	 
	 	 	 	 
	Lab supplies, computer service, publication charges, etc.
	 	$	17,000	 
	 
	 	 	 	 
	Technology Transfer Fee
	 	 	 	 
	 
	 	 	 	 
	Total direct costs 
	 	$	239,209	 
	Modified Direct Costs (excluding equipment) 
	 	$	169,209	 
	Indirect costs (25% of Modified Direct Costs) 
	 	$	42,302	 
	Total Costs for Year 1 
	 	$	281,511	 
	 
	 	 	 	 
	Year 2
	 	 	 	 
	Labor Costs:
	 	 	 	 
	Three summer months (July-September) for Dr. Tao 
	 	$	48,695	 
	12 month salary for postdoctoral fellow 
	 	$	49,440	 
	12 month salary for one graduate student
	 	$	21,012	 
	3 month salary (part-time) for one technician
	 	$	12,360	 
	Fringe Benefits 
	 	$	19,088	 
	 
	 	 	 	 
	Travel
	 	$	6,180	 
	 
	 	 	 	 
	Lab supplies computer service, publication charges, etc.
	 	$	18,016	 
	 
	 	 	 	 
	Total direct costs 
	 	$	174,791	 
	Modified Direct Costs (excluding equipment) 
	 	$	174,791	 
	Indirect costs (25% of Modified Direct Costs) 
	 	$	43,698	 
	Total Costs for Year 2 
	 	$	218,489	 
	 
	 	 	 	 
	Total Costs for the Project in 2 years 
	 	$	500,000	 
	 
	 	 	 	 

			
	Temple-SWA R&D Agreement
	 	Page 8 of 7 Pagesexv4w1

 

EXHIBIT 4.1

INDENTURE

dated as of February 6, 2007

by and between

ARGATROBAN ROYALTY SUB LLC,

a Delaware limited liability company,

as issuer of the Notes described herein,

and

U.S. BANK NATIONAL ASSOCIATION,

as initial trustee of the Notes described herein

 

 

Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	GRANTING CLAUSE	 	 	1	 
	 
	 	 	 	 	 	 
	HABENDUM CLAUSE	 	 	2	 
	 
	 	 	 	 	 	 
	ARTICLE I
	 	 	 	 
	GENERAL
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 1.1

	 	Rules of Construction and Defined Terms
	 	 	3	 
	Section 1.2

	 	Compliance Certificates and Opinions
	 	 	3	 
	Section 1.3

	 	Acts of Noteholders
	 	 	4	 
	 
	 	 	 	 	 	 
	ARTICLE II
	 	 	 	 
	THE NOTES
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 2.1

	 	Amount of Notes; Terms; Form; Execution and Delivery
	 	 	5	 
	Section 2.2

	 	Restrictive Legends
	 	 	8	 
	Section 2.3

	 	Registrar and Paying Agent
	 	 	11	 
	Section 2.4

	 	Paying Agent to Hold Money in Trust
	 	 	12	 
	Section 2.5

	 	Method of Payment
	 	 	13	 
	Section 2.6

	 	Minimum Denominations
	 	 	15	 
	Section 2.7

	 	Transfer and Exchange; Cancellation
	 	 	15	 
	Section 2.8

	 	Mutilated, Destroyed, Lost or Stolen Notes
	 	 	16	 
	Section 2.9

	 	Payments of Transfer Taxes
	 	 	17	 
	Section 2.10

	 	Book-Entry Provisions
	 	 	17	 
	Section 2.11

	 	Special Transfer Provisions
	 	 	18	 
	Section 2.12

	 	Temporary Definitive Notes
	 	 	23	 
	Section 2.13

	 	Statements to Noteholders
	 	 	23	 
	Section 2.14

	 	CUSIP, CINS, ISIN and Private Placement Numbers
	 	 	24	 
	Section 2.15

	 	Refinancing Notes
	 	 	25	 
	Section 2.16

	 	Class B Notes
	 	 	26	 
	 
	 	 	 	 	 	 
	ARTICLE III
	 	 	 	 
	ACCOUNTS; PRIORITY OF PAYMENTS
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 3.1

	 	Establishment of Accounts
	 	 	28	 
	Section 3.2

	 	Investments of Cash
	 	 	29	 
	Section 3.3

	 	Closing Date Deposits; Withdrawals and Transfers
	 	 	30	 
	Section 3.4

	 	Capital Contributions
	 	 	31	 
	Section 3.5

	 	Calculation Date Calculations
	 	 	31	 
	Section 3.6

	 	Payment Date First Step Transfers
	 	 	33	 
	Section 3.7

	 	Payment Date Second Step Withdrawals
	 	 	33	 
	Section 3.8

	 	Capital Account; Shortfalls
	 	 	34	 

i 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	Section 3.9

	 	Parent Shortfall
	 	 	35	 
	Section 3.10

	 	Redemptions
	 	 	35	 
	Section 3.11

	 	Procedure for Redemptions
	 	 	36	 
	Section 3.12

	 	Holdback Account
	 	 	37	 
	 
	 	 	 	 	 	 
	ARTICLE IV
	 	 	 	 
	DEFAULT AND REMEDIES
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 4.1

	 	Events of Default
	 	 	37	 
	Section 4.2

	 	Acceleration, Rescission and Annulment
	 	 	39	 
	Section 4.3

	 	Other Remedies
	 	 	39	 
	Section 4.4

	 	Limitation on Suits
	 	 	41	 
	Section 4.5

	 	Waiver of Existing Defaults
	 	 	42	 
	Section 4.6

	 	Restoration of Rights and Remedies
	 	 	42	 
	Section 4.7

	 	Remedies Cumulative
	 	 	43	 
	Section 4.8

	 	Authority of Courts Not Required
	 	 	43	 
	Section 4.9

	 	Rights of Noteholders to Receive Payment
	 	 	43	 
	Section 4.10

	 	Trustee May File Proofs of Claim
	 	 	43	 
	Section 4.11

	 	Undertaking for Costs
	 	 	43	 
	Section 4.12

	 	Control by Noteholders
	 	 	43	 
	Section 4.13

	 	Senior Trustee
	 	 	44	 
	Section 4.14

	 	Application of Proceeds
	 	 	44	 
	Section 4.15

	 	Waivers of Rights Inhibiting Enforcement
	 	 	44	 
	Section 4.16

	 	Security Interest Absolute
	 	 	45	 
	 
	 	 	 	 	 	 
	ARTICLE V
	 	 	 	 
	REPRESENTATIONS, WARRANTIES AND COVENANTS
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 5.1

	 	Representations and Warranties
	 	 	45	 
	Section 5.2

	 	Covenants
	 	 	48	 
	Section 5.3

	 	Reports and Other Deliverables by the Issuer
	 	 	54	 
	 
	 	 	 	 	 	 
	ARTICLE VI
	 	 	 	 
	THE TRUSTEE
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 6.1

	 	Acceptance of Trusts and Duties
	 	 	54	 
	Section 6.2

	 	Copies of Documents and Other Notices
	 	 	55	 
	Section 6.3

	 	Representations and Warranties
	 	 	55	 
	Section 6.4

	 	Reliance; Agents; Advice of Counsel
	 	 	56	 
	Section 6.5

	 	Not Acting in Individual Capacity
	 	 	58	 
	Section 6.6

	 	Compensation of Trustee
	 	 	59	 
	Section 6.7

	 	Notice of Defaults
	 	 	59	 
	Section 6.8

	 	May Hold Notes
	 	 	59	 
	Section 6.9

	 	Corporate Trustee Required; Eligibility
	 	 	59	 
	Section 6.10

	 	Reports by the Trustee
	 	 	59	 
	Section 6.11

	 	Calculation Agent
	 	 	60	 
	Section 6.12

	 	Pledge and Security Agreement and Other Transaction Documents
	 	 	60	 
	Section 6.13

	 	Custody of the Collateral
	 	 	60	 
	Section 6.14

	 	Preservation and Disclosure of Noteholder Lists
	 	 	60	 

ii 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	Section 6.15

	 	Audit Rights
	 	 	61	 
	Section 6.16

	 	Compliance with Applicable Anti-Terrorism and Anti-Money
Laundering Regulations
	 	 	61	 
	Section 6.17

	 	Jurisdiction of Trustee
	 	 	61	 
	 
	 	 	 	 	 	 
	ARTICLE VII
	 	 	 	 
	SUCCESSOR TRUSTEES
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 7.1

	 	Resignation and Removal of Trustee
	 	 	61	 
	Section 7.2

	 	Appointment of Successor
	 	 	62	 
	 
	 	 	 	 	 	 
	ARTICLE VIII
	 	 	 	 
	INDEMNITY
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 8.1

	 	Indemnity
	 	 	63	 
	Section 8.2

	 	Noteholders’ Indemnity
	 	 	63	 
	Section 8.3

	 	Survival
	 	 	63	 
	 
	 	 	 	 	 	 
	ARTICLE IX
	 	 	 	 
	MODIFICATION
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 9.1

	 	Modification with Consent of Noteholders
	 	 	64	 
	Section 9.2

	 	Modification Without Consent of Noteholders
	 	 	65	 
	Section 9.3

	 	Subordination; Priority of Payments
	 	 	66	 
	Section 9.4

	 	Execution of Amendments by Trustee
	 	 	66	 
	Section 9.5

	 	Conformity with Trust Indenture Act
	 	 	66	 
	 
	 	 	 	 	 	 
	ARTICLE X
	 	 	 	 
	SUBORDINATION
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 10.1

	 	Subordination of the Notes
	 	 	66	 
	 
	 	 	 	 	 	 
	ARTICLE XI
	 	 	 	 
	DISCHARGE OF INDENTURE
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 11.1

	 	Discharge of Indenture
	 	 	68	 
	 
	 	 	 	 	 	 
	ARTICLE XII
	 	 	 	 
	MISCELLANEOUS
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 12.1

	 	Right of Trustee to Perform
	 	 	68	 
	Section 12.2

	 	Waiver
	 	 	68	 
	Section 12.3

	 	Severability
	 	 	69	 
	Section 12.4

	 	Restrictions on Exercise of Certain Rights
	 	 	69	 
	Section 12.5

	 	Notices
	 	 	69	 
	Section 12.6

	 	Assignments
	 	 	70	 
	Section 12.7

	 	Application to Court
	 	 	70	 
	Section 12.8

	 	GOVERNING LAW
	 	 	71	 
	Section 12.9

	 	Jurisdiction
	 	 	71	 
	Section 12.10

	 	Counterparts
	 	 	72	 
	Section 12.11

	 	Table of Contents and Headings
	 	 	72	 

iii 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	Section 12.12

	 	Trust Indenture Act
	 	 	73	 
	Section 12.13

	 	Confidential Information
	 	 	73	 
	Section 12.14

	 	Limited Recourse
	 	 	74	 

	 	 	 
	Annex A

	 	Rules of Construction and Defined Terms
	 
	 	 
	Exhibit A

	 	Form of Original Class A Notes
	Exhibit B

	 	Form of Resale Confidentiality Agreement
	Exhibit C

	 	Agents for Service of Process
	Exhibit D

	 	Coverage of Distribution Report
	Exhibit E

	 	UCC Financing Statements
	Exhibit F

	 	Form of Certificate of Euroclear or Clearstream for Permanent Regulation S Global Note
	Exhibit G

	 	Form of Certification of Beneficial Owner of Temporary Regulation S Global Note
	Exhibit H

	 	Form of Certification of Euroclear or Clearstream for Payments
	Exhibit I

	 	Form of Certificate of Proposed Transferor
	Exhibit J

	 	Form of Certificate of Certain Proposed Institutional Accredited Investor Transferees
	Exhibit K

	 	Form of Expanded Internal Revenue Service Form W-9

iv 

 

INDENTURE

     This INDENTURE, dated as of February 6, 2007, is by and between ARGATROBAN ROYALTY SUB LLC, a
Delaware limited liability company, as issuer of the Notes described herein, and U.S. BANK NATIONAL
ASSOCIATION, a national banking association, as initial trustee of the Notes described herein.

GRANTING CLAUSE

     NOW, THEREFORE, THIS INDENTURE WITNESSETH, that, in consideration of the premises and the
acceptance by the Trustee of the trusts hereby created and of the purchase and acceptance of the
Notes by the Noteholders, and for other good and valuable consideration, the receipt of which is
hereby acknowledged, in order to secure (i) the prompt payment of the principal of, Premium (if
any) and interest on, and all other amounts due with respect to, the Notes from time to time
Outstanding hereunder, including any break funding costs and interest rate swap breakage costs,
(ii) the payment of any fees, expenses or other amounts that the Issuer is obligated to pay under
or in respect of the Notes, this Indenture or any other Transaction Document to which the Issuer is
a party, (iii) the payment and performance of all the obligations of the Issuer in respect of any
amendment, modification, extension, renewal or refinancing of the Notes and (iv) the performance
and observance by the Issuer of all the agreements, covenants and provisions herein and in the
Notes for the benefit of the Noteholders (collectively, the “Secured Obligations”) and for
the uses and purposes and subject to the terms and provisions hereof, the Issuer does hereby grant,
bargain, sell, assign, transfer, convey, mortgage, pledge and confirm unto the Trustee, its
successors and assigns, for the security and benefit of the Noteholders from time to time of the
Notes, a first priority security interest in all right, title and interest of the Issuer in, to and
under the following described property, rights and privileges (each property, including all other
property hereafter specifically subjected to the lien of this Indenture or any indenture
supplemental hereto, being the “Collateral” and, collectively, including all other property
hereafter specifically subjected to the lien of this Indenture or any indenture supplemental
hereto, are included within and defined as the “Indenture Estate”), to wit:

     (1) the Purchased Assets;

     (2) the Purchase and Sale Agreement, the Servicing Agreement, any Hedge Agreement and all
other Transaction Documents, Principal Documents and other agreements to which the Issuer is a
party, including those relating to the rights of the Issuer in respect of the sale, transfer,
conveyance, assignment, contribution, grant and servicing of the Purchased Assets;

     (3) (A) all Accounts established under this Indenture at any time, (B) all amounts from time
to time credited to such Accounts, (C) all cash, financial assets and other investment property,
instruments, documents, chattel paper, general intangibles, accounts and other property from time
to time credited to such Accounts or representing investments and reinvestments of amounts credited
to such Accounts and (D) all interest, principal payments, dividends and other distributions
payable on or with respect to, and all proceeds of, (i) all property so credited or representing
such investments and reinvestments and (ii) such Accounts;

1

 

     (4) all of the Issuer’s rents, issues, profits, revenues and other income of the property
subjected or required to be subjected to the lien of this Indenture;

     (5) all other property and assets of the Issuer with respect to which a security interest can
be created under Article 9 of the UCC, including all goods, deposit accounts, investment property,
financial assets, letter-of-credit rights, supporting obligations, commercial tort claims,
accounts, contract rights, general intangibles and all other cash (except (i) to the extent
permitted to be distributed by the Issuer to the Parent pursuant to Section 3.7(b) and (ii)
proceeds from any Notes issued in accordance with and pursuant to this Indenture);

     (6) all rights of the Issuer (contractual and otherwise) constituting, arising under,
connected with or in any way related to any or all of the foregoing property;

     (7) all books, records, ledger cards, files, correspondence, computer programs, tapes, disks
and related data processing software (owned by the Issuer) that at any time evidence or contain
information relating to any of the foregoing property or are otherwise necessary or helpful in the
collection thereof or realization thereupon;

     (8) all documents of title, policies and certificates of insurance, securities, chattel paper
and other documents or instruments evidencing or pertaining to any of the foregoing property of the
Issuer; and

     (9) all proceeds and products of any and all of the foregoing property;

     BUT SUBJECT TO all of the terms and conditions of this Indenture.

HABENDUM CLAUSE

     TO HAVE AND TO HOLD all and singular the aforesaid property unto the Trustee, its successors
and assigns, in trust for the benefit and security of the Noteholders from time to time of each
class of the Notes, without any priority of any one class of Notes over any other class of Notes by
reason of difference in time of issuance or otherwise, except as expressly provided herein, and for
the uses and purposes and subject to the terms and provisions set forth in this Indenture.

     PROVIDED, HOWEVER, that, notwithstanding any of the foregoing provisions or anything to the
contrary herein, so long as no Event of Default shall have occurred and be continuing, the Issuer
shall have the right, to the exclusion of the Trustee and the Noteholders, to exercise in the
Issuer’s name all rights and powers of the Issuer under the Purchase and Sale Agreement, the
Servicing Agreement, any Hedge Agreement and any other agreement to which the Issuer may be a party
(including the Principal Documents), except as otherwise set forth in any such agreement, and
SUBJECT TO all of the terms and conditions of this Indenture.

     It is hereby further agreed that any and all property described or referred to in the Granting
Clause which is hereafter acquired by the Issuer shall ipso facto, and without any other
conveyance, assignment or act on the part of the Issuer or the Trustee, become and be subject to
the Security Interest herein granted as fully and completely as though specifically described

2

 

herein, but nothing contained in this paragraph shall be deemed to modify or change the
obligations of the Issuer contained in the foregoing paragraphs.

     The Issuer does hereby ratify and confirm this Indenture and the other Transaction Documents
to which it is a party and, subject to the other terms of this Indenture, does hereby agree that it
will not take or omit to take any action, the taking or omission of which might result in an
alteration or impairment of the assignment hereunder or of any of the rights created by any
thereof.

     It is expressly agreed that anything herein contained to the contrary notwithstanding, the
Issuer shall remain liable under the Transaction Documents and any other contracts and agreements
included in the Collateral to the extent set forth therein and shall perform all of the duties and
obligations of the Issuer thereunder to the same extent as if this Indenture had not been executed
in accordance with and pursuant to the terms and provisions thereof, the exercise by the Trustee of
any of its rights hereunder shall not release the Issuer from any of its duties or obligations
under any such Transaction Documents or other contracts or agreements included in the Collateral,
and, prior to the foreclosure of the lien of this Indenture under Section 4.3, the Trustee and the
Noteholders shall have no obligation or liability under any thereof by reason of or arising out of
this Indenture or the assignment hereunder, nor shall the Trustee or the Noteholders be required or
obligated in any manner to perform or fulfill any obligations or duties of the Issuer under or
pursuant to any Transaction Document or any other contract or agreement included in the Collateral
or, except as herein expressly provided, to make any payment, make any inquiry as to the nature or
sufficiency of any payment received by it, present or file any claim or take any action to collect
or enforce any claim for payment assigned hereunder or the payment of any amounts which may have
been assigned to it or to which it may be entitled at any time or times; provided,
however, that, in exercising any right of the Issuer under any Transaction Document or any
other contract or agreement included in the Collateral, the Trustee and the Noteholders shall be
bound by, and shall comply with, the provisions thereof applicable to the Issuer in respect of the
exercise of such right.

     IT IS HEREBY COVENANTED AND AGREED by and between the parties hereto as follows:

ARTICLE I

GENERAL

     Section 1.1 Rules of Construction and Defined Terms. The rules of construction set forth in
Annex A shall apply to this Indenture and are hereby incorporated by reference into this
Indenture as if set forth fully in this Indenture. Capitalized terms used but not otherwise
defined in this Indenture shall have the respective meanings given to such terms in Annex
A, which is hereby incorporated by reference into this Indenture as if set forth fully in this
Indenture. Not all terms defined in Annex A are used in this Indenture.

     Section 1.2 Compliance Certificates and Opinions. Upon any application or request by the Issuer to the Trustee to take any action under any
provision of this Indenture, the Issuer shall furnish to the Trustee an Officer’s Certificate
stating that, in the opinion of the signer thereof in his or her capacity as such, all conditions
precedent, if any, provided for in this

3

 

Indenture relating to the proposed action have been
complied with, and an Opinion of Counsel stating that, in the opinion of such counsel, all such
conditions precedent, if any, have been complied with, except that, in the case of any such
application or request as to which the furnishing of such documents is specifically required by any
provision of this Indenture relating to such particular application or request, no additional
certificate or opinion need be furnished.

     Every certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture (other than a certificate provided pursuant to Section 5.3) or any indenture
supplemental hereto shall include:

          (a) a statement that each individual signing such certificate or opinion has read such
covenant or condition and the definitions in this Indenture relating thereto;

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

          (c) a statement that, in the opinion of each such individual in his or her capacity as such,
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

          (d) a statement as to whether, in the opinion of each such individual, such condition or
covenant has been complied with.

     Section 1.3 Acts of Noteholders.

          (a) Any direction, consent, waiver or other action provided by this Indenture in respect of
the Notes of any class to be given or taken by Noteholders may be embodied in and evidenced by one
or more instruments of substantially similar tenor signed by such Noteholders in person or by an
agent or proxy duly appointed in writing, and, except as herein otherwise expressly provided, such
action shall become effective when such instrument or instruments are delivered to the Trustee or
to the Issuer. Such instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the “Act” of the Noteholders signing such
instrument or instruments. Proof of execution of any such instrument or of a writing appointing
any such agent shall be sufficient for any purpose under this Indenture and conclusive in favor of
the Trustee or the Issuer, if made in the manner provided in this Section 1.3(a).

          (b) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the certificate of any notary public or other officer of any jurisdiction authorized to
take acknowledgments of deeds or administer oaths that the Person executing such instrument
acknowledged to him or her the execution thereof, or by an affidavit of a witness to such execution
sworn to before any such notary or such other officer and, where such execution
is by an officer of a corporation or association, trustee of a trust or member of a
partnership, on behalf of such corporation, association, trust or partnership, such certificate or
affidavit shall also constitute sufficient proof of his or her authority. The fact and date of the
execution of any such

4

 

instrument or writing, or the authority of the Person executing the same, may
also be proved in any other reasonable manner that the Trustee deems sufficient.

          (c) In determining whether the Noteholders have given any direction, consent, request, demand,
authorization, notice, waiver or other Act (a “Direction”) under this Indenture, Notes
owned by the Issuer, the Parent or any Affiliate of any such Person shall be disregarded and deemed
not to be Outstanding for purposes of any such determination. In determining whether the Trustee
shall be protected in relying upon any such Direction, only Notes that a Responsible Officer of the
Trustee actually knows to be so owned shall be so disregarded. Notwithstanding the foregoing, (i)
if any such Person owns 100% of the Notes of any class Outstanding, such Notes shall not be so
disregarded as aforesaid, and (ii) if any amount of Notes of such class so owned by any such Person
have been pledged in good faith, such Notes shall not be disregarded as aforesaid if the pledgee
establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to such
Notes and that the pledgee is not the Issuer, the Parent or an Affiliate of any such Person.

          (d) The Issuer may, at its option, by delivery of Officer’s Certificate(s) to the Trustee, set
a record date other than the Record Date to determine the Noteholders in respect of the Notes of
any class entitled to give any Direction in respect of such Notes. Such record date shall be the
record date specified in such Officer’s Certificate, which shall be a date not more than 30 days
prior to the first solicitation of Noteholders in connection therewith. If such a record date is
fixed, such Direction may be given before or after such record date, but only the Noteholders of
the applicable class at the close of business on such record date shall be deemed to be Noteholders
for the purposes of determining whether Noteholders of the requisite proportion of Outstanding
Notes of such class have authorized, agreed or consented to such Direction, and for that purpose
the Outstanding Notes of such class shall be computed as of such record date; provided,
that no such Direction by the Noteholders on such record date shall be deemed effective unless it
shall become effective pursuant to the provisions of this Indenture not later than one year after
the record date.

          (e) Any Direction or other action by the Noteholder of any Note shall bind the Noteholder of
every Note issued upon the transfer thereof, in exchange therefor or in lieu thereof, whether or
not notation of such action is made upon such Note, and any Direction or other action by the
Beneficial Holder of any Beneficial Interest in any Note shall bind any transferee of such
Beneficial Interest.

ARTICLE II

THE NOTES

     Section 2.1 Amount of Notes; Terms; Form; Execution and Delivery.

          (a) The Outstanding Principal Balance of any class of Notes which may be authenticated and
delivered from time to time under this Indenture shall not exceed, with respect to the Original
Class A Notes, the initial Outstanding Principal Balance for the Original Class A
Notes set forth in the definition thereof or, with respect to any Class B Notes or any class
of Refinancing Notes, the initial Outstanding Principal Balance authorized in the Manager
Resolution establishing such Class B Notes or Refinancing Notes; provided, that the
Outstanding

5

 

Principal Balance of any such class of Refinancing Notes (when added to the Available
Collections Amount and any funds in the Holdback Account and the Capital Account used in connection
with such refinancing) shall not be less than the Redemption Price of the class of Notes being
refinanced in whole thereby, plus Transaction Expenses relating thereto, that any Refinancing Notes
shall be issued in accordance with Section 2.15 and that any Class B Notes shall be issued in
accordance with Section 2.16.

          (b) There shall be issued, authenticated and delivered on the Closing Date and on the date of
issuance of any Class B Notes or any Refinancing Notes to each of the Noteholders Notes in the
principal amounts and maturities and bearing the interest rates, in each case in registered form
and, in the case of the Original Class A Notes, substantially in the form set forth in Exhibit
A or, in the case of any Class B Notes or any Refinancing Notes, substantially in the form set
forth in any indenture supplemental hereto, with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this Indenture, and may have
such letters, numbers or other marks of identification and such legends or endorsements
typewritten, printed, lithographed or engraved thereon, as may, consistently herewith, be
prescribed by the Trustee. The Trustee shall authenticate Notes and make Notes available for
delivery only upon the written order of the Issuer signed by a Responsible Officer of the Issuer.
Such order shall specify the aggregate principal amount of Notes to be authenticated, the date of
issue, whether they are to be issued as Global Notes or Definitive Notes and delivery instructions.

     Definitive Notes of each class shall be typewritten, printed, lithographed or engraved or
produced by any combination of these methods, as determined by the Trustee. Any Notes offered and
sold to Institutional Accredited Investors that are not QIBs that are not offered and sold in
offshore transactions in reliance on Regulation S shall be issued initially in the form of
Definitive Notes.

     Any Notes offered and sold in reliance on Rule 144A shall be issued initially in the form of
one or more permanent Global Notes in registered form, substantially in the form set forth in the
applicable Exhibit to this Indenture or in any indenture supplemental hereto (each, a “144A
Global Note”), registered in the name of the nominee of DTC, deposited with the Trustee, as
custodian for DTC, duly executed by the Issuer and authenticated by the Trustee as hereinafter
provided. The aggregate principal amount of each 144A Global Note may from time to time be
increased or decreased by adjustments made on the books and records of the Registrar, as
hereinafter provided.

     Any Notes offered and sold to Institutional Accredited Investors in offshore transactions in
reliance on Regulation S shall be issued initially in the form of one or more temporary global
Notes in registered form substantially in the form set forth in the applicable Exhibit to this
Indenture or in any indenture supplemental hereto (each, a “Temporary Regulation S Global
Note”), registered in the name of the nominee of DTC, deposited with the Trustee, as custodian
for DTC, duly executed by the Issuer and authenticated by the Trustee as hereinafter provided. At
any time following the applicable Regulation S Global Note Exchange Date, upon receipt by
the Trustee and the Issuer of a certificate substantially in the form of Exhibit F,
executed by Euroclear or Clearstream, as the case may be, together with copies of certificates from
Euroclear or Clearstream, as the case may be, certifying that it has received certification of
non-U.S.

6

 

beneficial ownership of a Temporary Regulation S Global Note (or portion thereof) with
respect to any Notes to be exchanged, one or more permanent Global Notes for such Notes in
registered form substantially in the form set forth in the applicable Exhibit to this Indenture or
in any indenture supplemental hereto (each, a “Permanent Regulation S Global Note” and,
together with each Temporary Regulation S Global Note, the “Regulation S Global Notes”)
duly executed by the Issuer and authenticated by the Trustee as hereinafter provided shall be
deposited with the Trustee, as custodian for DTC, and the Registrar shall reflect on its books and
records the date and a decrease in the principal amount of the Temporary Regulation S Global Note
of such class in an amount equal to the principal amount of such Temporary Regulation S Global Note
exchanged. Until the Regulation S Global Note Exchange Date with respect to any Temporary
Regulation S Global Note, Beneficial Interests in such Temporary Regulation S Global Note may be
held only through Agent Members acting for and on behalf of Euroclear and Clearstream.

     Notes, if so provided herein or in any indenture supplemental hereto, shall be issued in the
form of permanent certificated Notes in registered form in substantially the form set forth in this
Section 2.1(b) (collectively with any definitive, fully registered Notes issued pursuant to Section
2.10(b), the “Definitive Notes”).

          (c) Interest shall accrue on the Original Class A Notes from the Closing Date (or, with
respect to any other class of Fixed Rate Notes, the date of issuance of such Fixed Rate Notes) and
shall be computed with respect to the Original Class A Notes or any other class of Fixed Rate Notes
for each Interest Accrual Period on the basis of a 360-day year consisting of twelve 30-day months
on the Outstanding Principal Balance of such Notes. Interest shall accrue on any class of Floating
Rate Notes from the date of issuance of such Floating Rate Notes and shall be computed for each
Interest Accrual Period on the basis of a 360-day year and the actual number of days elapsed in
such Interest Accrual Period on the Outstanding Principal Balance of such Notes. If any interest
payment is not made when due on a Payment Date, the unpaid portion of such interest payment will
accrue interest at the rate then applicable to the Notes, compounded quarterly, until paid in full.

          (d) On the date of any Refinancing, the Issuer shall issue and deliver as provided in Section
2.15 an aggregate principal amount of Refinancing Notes having the maturities and bearing the
interest rates and such other terms authorized by one or more Manager Resolutions or in any
indenture supplemental hereto providing for the issuance of such Refinancing Notes or specified in
the form of such Refinancing Notes, in each case in accordance with Section 2.15.

          (e) On the date of issuance, if any, of any Class B Notes, the Issuer shall issue and deliver,
as provided in Section 2.16, an aggregate principal amount of Class B Notes having the maturities
and bearing the interest rates and such other terms authorized by one or more Manager Resolutions
or in any indenture supplemental hereto providing for the issuance of such Class B Notes or
specified in the form of such Class B Notes, in each case in accordance with Section 2.16.

          (f) The Notes shall be executed on behalf of the Issuer by the manual or facsimile signature
of the Manager.

7

 

          (g) Each Note bearing the manual or facsimile signature of any individual who at the time such
Note was executed was authorized to execute such Note by the Manager shall bind the Issuer,
notwithstanding that any such individual has ceased to hold such authority thereafter but prior to
the authentication and delivery of such Notes or any payment thereon.

          (h) At any time and from time to time after the execution of any Notes, the Issuer may deliver
such Notes to the Trustee for authentication and, subject to the provisions of Section 2.1(i), the
Trustee shall authenticate such Notes by manual or facsimile signature upon receipt by it of a
written order of the Issuer. The Notes shall be authenticated on behalf of the Trustee by any
Responsible Officer of the Trustee.

          (i) No Note shall be entitled to any benefit under this Indenture or be valid or obligatory
for any purpose, unless it shall have been executed on behalf of the Issuer as provided in Section
2.1(f) and authenticated by or on behalf of the Trustee as provided in Section 2.1(h). Such
signatures shall be conclusive evidence that such Note has been duly executed and authenticated
under this Indenture. Each Note shall be dated the date of its authentication.

     Section 2.2 Restrictive Legends. Each Note (and all Notes issued in exchange therefor or upon
registration of transfer or substitution thereof) shall bear the following legend on the face
thereof (the “Private Placement Legend”):

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), THE SECURITIES LAWS OF ANY STATE OR THE SECURITIES LAWS OF ANY
OTHER JURISDICTION, NOR IS SUCH REGISTRATION CONTEMPLATED. NEITHER THIS NOTE NOR
ANY INTEREST HEREIN MAY BE ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED, SOLD OR
OFFERED FOR SALE OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION UNDER
THE SECURITIES ACT OR AN EXEMPTION FROM SUCH REGISTRATION THEREUNDER AND ANY OTHER
APPLICABLE SECURITIES LAW REGISTRATION REQUIREMENTS. EACH PERSON WHO ACQUIRES OR
ACCEPTS THIS NOTE OR AN INTEREST HEREIN BY SUCH ACQUISITION OR ACCEPTANCE (1)
REPRESENTS THAT (A) IT IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT) AND IS PURCHASING THIS NOTE IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A UNDER THE SECURITIES ACT, (B) IT IS AN INSTITUTIONAL
ACCREDITED INVESTOR AS DEFINED IN SUBPARAGRAPH (a) (1), (2), (3) OR (7) OF RULE 501
UNDER THE SECURITIES ACT (AN “INSTITUTIONAL ACCREDITED INVESTOR”), HAS SUFFICIENT
KNOWLEDGE AND EXPERIENCE IN FINANCIAL AND BUSINESS MATTERS TO BE CAPABLE OF
EVALUATING THE MERITS
AND RISKS OF THE PURCHASE OF THIS NOTE AND IS ABLE AND PREPARED TO BEAR THE ECONOMIC
RISK OF INVESTING IN AND HOLDING THIS NOTE, (C) IT IS AN INSTITUTIONAL ACCREDITED
INVESTOR THAT IS NOT A U.S. PERSON AND IS ACQUIRING THIS NOTE IN AN OFFSHORE
TRANSACTION IN COMPLIANCE WITH RULE

8

 

903 OR 904 OF REGULATION S UNDER THE SECURITIES
ACT OR (D) IT IS AN INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THIS NOTE AFTER THE
RESALE RESTRICTION TERMINATION DATE (AS DEFINED BELOW), (2) AGREES THAT IT WILL NOT
OFFER, SELL OR OTHERWISE TRANSFER THIS NOTE OR AN INTEREST HEREIN, EXCEPT (A) TO THE
ISSUER OR A SUBSIDIARY THEREOF, (B) FOR SO LONG AS THIS NOTE IS ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES
IS A QUALIFIED INSTITUTIONAL BUYER THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER, TO WHOM NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A UNDER THE SECURITIES ACT, (C) TO AN
INSTITUTIONAL ACCREDITED INVESTOR THAT IS PURCHASING THIS NOTE OR AN INTEREST
HEREIN, AS THE CASE MAY BE, FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH AN
INSTITUTIONAL ACCREDITED INVESTOR FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR
FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE
SECURITIES ACT OR (D) TO AN INSTITUTIONAL ACCREDITED INVESTOR OUTSIDE THE UNITED
STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 903 OR 904 OF REGULATION S
UNDER THE SECURITIES ACT (IF AVAILABLE), IN EACH CASE UNLESS CONSENTED TO BY THE
ISSUER IN ITS SOLE DISCRETION AND SUCH OFFER, SALE OR OTHER TRANSFER OCCURS
FOLLOWING (X) THE DATE THAT IS TWO YEARS (OR SUCH SHORTER PERIOD OF TIME AS
PERMITTED BY RULE 144(k) UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION
THEREUNDER) AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF (OR ANY PREDECESSOR OF
THIS NOTE) AND (Y) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY APPLICABLE LAW
(THE “RESALE RESTRICTION TERMINATION DATE”) AND (3) AGREES THAT IT WILL GIVE TO EACH
PERSON TO WHOM THIS NOTE OR AN INTEREST HEREIN IS TRANSFERRED A NOTICE SUBSTANTIALLY
TO THE EFFECT OF THIS LEGEND; PROVIDED, THAT THE ISSUER AND THE TRUSTEE SHALL HAVE
THE RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (2)(C) OR (D)
OF THIS PARAGRAPH TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION
AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THE TERMS “OFFSHORE
TRANSACTION”, “UNITED STATES” AND “U.S. PERSON” HAVE THE RESPECTIVE MEANINGS GIVEN
TO THEM BY REGULATION S UNDER THE SECURITIES ACT. THE INDENTURE REFERRED TO HEREINAFTER CONTAINS A PROVISION
REQUIRING THE REGISTRAR APPOINTED THEREUNDER TO REFUSE TO REGISTER ANY TRANSFER OF
THIS NOTE IN VIOLATION OF THE FOREGOING RESTRICTIONS.

     Each Note shall also bear the following legend on the face thereof:

9

 

BY ITS PURCHASE AND ACCEPTANCE OF THIS NOTE, EACH PURCHASER WILL BE DEEMED TO HAVE
REPRESENTED AND WARRANTED THAT EITHER (I) NO PLAN ASSETS HAVE BEEN USED TO PURCHASE
THIS NOTE OR (II) TO THE EXTENT THAT PLAN ASSETS ARE USED TO PURCHASE THIS NOTE (X)
ONE OR MORE STATUTORY OR ADMINISTRATIVE EXEMPTIONS APPLIES SUCH THAT THE USE OF PLAN
ASSETS TO PURCHASE AND HOLD THIS NOTE WILL NOT CONSTITUTE A NON-EXEMPT PROHIBITED
TRANSACTION OR (Y) SUCH ASSETS ARE NOT CONSIDERED PLAN ASSETS BY REASON OF BEING
HELD IN A SEPARATE ACCOUNT OF AN INSURANCE COMPANY, UNDER WHICH AMOUNTS PAYABLE OR
CREDITED TO THE PLAN AND TO ANY PARTICIPANT OR BENEFICIARY OF THE PLAN ARE NOT
AFFECTED BY THE INVESTMENT PERFORMANCE OF THE SEPARATE ACCOUNT. “PLAN ASSETS” HAS
THE MEANING GIVEN TO IT BY SECTION 3(42) OF THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED (“ERISA”) AND REGULATIONS OF THE DEPARTMENT OF LABOR.

THIS NOTE MAY NOT BE RESOLD OR TRANSFERRED EXCEPT AS SET FORTH IN THE INDENTURE
REFERRED TO HEREINAFTER, AND, IN ADDITION, EACH PERSON WHO ACQUIRES OR ACCEPTS THIS
NOTE OR AN INTEREST HEREIN BY SUCH ACQUISITION OR ACCEPTANCE AGREES THAT IT SHALL
CAUSE ANY PROPOSED TRANSFEREE TO EXECUTE A RESALE CONFIDENTIALITY AGREEMENT IN THE
FORM ATTACHED AS EXHIBIT B TO SUCH INDENTURE AND AN EXPANDED FORM W-9 CERTIFYING
THAT SUCH PROPOSED TRANSFEREE IS A U.S. RESIDENT IN THE FORM ATTACHED AS EXHIBIT K
TO SUCH INDENTURE AND DELIVER SUCH RESALE CONFIDENTIALITY AGREEMENT AND EXPANDED
FORM W-9 TO THE REGISTRAR (AS DEFINED IN SUCH INDENTURE) AND FURTHER AGREES TO
OTHERWISE COMPLY WITH THE TRANSFER RESTRICTIONS SET FORTH IN SUCH INDENTURE,
INCLUDING SECTION 2.11 THEREOF, AND FURTHER ACKNOWLEDGES AND AGREES TO THE
PROVISIONS SET FORTH IN SECTION 2.5 OF SUCH INDENTURE.

THIS NOTE MAY NOT BE SOLD OR TRANSFERRED TO A COMPANY RANKED IN THE TOP 20
PHARMACEUTICAL COMPANIES IN THE UNITED STATES BASED ON IMS-REPORTED PHARMACEUTICAL
SALES FOR THE CALENDAR YEAR PRECEDING THE PROPOSED TRANSFER OR AN AFFILIATE OF SUCH
ENTITY.

Each Global Note shall also bear the following legend on the face thereof:

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN

10

 

THE NAME OF CEDE & CO. OR TO SUCH
OTHER ENTITY 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.

TRANSFERS OF THIS NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND
TRANSFERS OF PORTIONS OF THIS NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE
WITH THE RESTRICTIONS SET FORTH IN SECTION 2.11 OF THE INDENTURE REFERRED TO
HEREINAFTER.

     Each Temporary Regulation S Global Note shall also bear the following legend on the face
thereof:

THIS NOTE IS A TEMPORARY REGULATION S GLOBAL NOTE WITHIN THE MEANING OF THE
INDENTURE REFERRED TO HEREINAFTER AND IS SUBJECT TO RESTRICTIONS ON THE TRANSFER AND
EXCHANGE THEREOF AND ON THE PAYMENT OF INTEREST THEREON AS SPECIFIED IN THE
INDENTURE REFERRED TO HEREINAFTER.

     Section 2.3 Registrar and Paying Agent.

          (a) With respect to each class of Notes, there shall at all times be maintained an office or
agency in the location set forth in Section 12.5 where the Notes of such class may be presented or
surrendered for registration of transfer or for exchange (including any additional registrar, each,
a “Registrar”) and for payment thereof (including any additional paying agent, each, a
“Paying Agent”) and where notices and demands to or upon the Issuer in respect of such
Notes may be served. The Trustee shall be the initial Paying Agent and Registrar, and the Issuer
shall not be permitted to act as a Paying Agent or a Registrar. The Issuer shall cause each
Registrar to keep a register of such class of Notes for which it is acting as Registrar and of
their transfer and exchange (the “Register”). Written notice of the location of each such
other office or agency and of any change of location thereof shall be given by the Trustee to the
Issuer and the Noteholders of such class of Notes. In the event that no such office or agency
shall be
maintained or no such notice of location or of change of location shall be given,
presentations and demands may be made and notices may be served at the Corporate Trust Office.

          (b) Each Authorized Agent in the location set forth in Section 12.5 shall be a bank, trust
company or corporation organized and doing business under the laws of the U.S., any state or
territory thereof or of the District of Columbia, with a combined capital and surplus of at

11

 

least
$75,000,000 (or having a combined capital and surplus in excess of $5,000,000 and the obligations
of which, whether now in existence or hereafter incurred, are fully and unconditionally Guaranteed
by a bank, trust company or corporation organized and doing business under the laws of the U.S.,
any state or territory thereof or of the District of Columbia and having a combined capital and
surplus of at least $75,000,000) and shall be authorized under the laws of the U.S., any state or
territory thereof or the District of Columbia to exercise corporate trust powers, subject to
supervision by federal or state authorities (such requirements, the “Eligibility
Requirements”). Each Registrar other than the Trustee shall furnish to the Trustee, at least
five Business Days prior to each Payment Date, and at such other times as the Trustee may request
in writing, a copy of the Register maintained by such Registrar.

          (c) Any Person into which any Authorized Agent may be merged or converted or with which it may
be consolidated, or any Person resulting from any merger, consolidation or conversion to which any
Authorized Agent shall be a party, or any Person succeeding to all or substantially all of the
corporate trust business of any Authorized Agent (including the administration of the fiduciary
relationship contemplated by this Indenture), shall be the successor of such Authorized Agent
hereunder, if such successor corporation is otherwise eligible under this Section 2.3, without the
execution or filing of any paper or any further act on the part of the parties hereto or such
Authorized Agent or such successor Person.

          (d) Any Authorized Agent may at any time resign by giving written notice of resignation to the
Trustee and the Issuer. The Issuer may, and at the request of the Trustee shall, at any time
terminate the agency of any Authorized Agent by giving written notice of termination to such
Authorized Agent and to the Trustee. Upon the resignation or termination of an Authorized Agent or
if at any time any such Authorized Agent shall cease to be eligible under this Section 2.3 (when,
in either case, no other Authorized Agent performing the functions of such Authorized Agent shall
have been appointed by the Trustee), the Issuer shall promptly appoint one or more qualified
successor Authorized Agents, reasonably satisfactory to the Trustee, to perform the functions of
the Authorized Agent that has resigned or whose agency has been terminated or who shall have ceased
to be eligible under this Section 2.3. The Issuer shall give written notice of any such
appointment made by it to the Trustee, and in each case the Trustee shall mail notice of such
appointment to all Noteholders of the related class of Notes as their names and addresses appear on
the Register for such class of Notes.

          (e) The Issuer agrees to pay, or cause to be paid, from time to time to each Authorized Agent
reasonable compensation for its services and to reimburse it for its reasonable expenses to be
agreed to pursuant to separate agreements with each such Authorized Agent.

     Section 2.4 Paying Agent to Hold Money in Trust. The Trustee shall require each Paying Agent other than the Trustee to agree in writing that
all moneys deposited with any Paying Agent for the purpose of any payment on the Notes shall be
deposited and held in trust for the benefit of the Noteholders entitled to such payment, subject to
the provisions of this Section 2.4. Moneys so deposited and held in trust shall constitute a
separate trust fund for the benefit of the Noteholders with respect to which such money was
deposited.

     The Trustee may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, direct any Paying Agent to pay to the Trustee all sums

12

 

held in trust by such Paying Agent, and, upon such payment by any Paying Agent to the Trustee, such
Paying Agent shall be released from all further liability with respect to such money.

     Section 2.5 Method of Payment.

          (a) On each Payment Date, the Trustee shall, or shall instruct a Paying Agent to, pay, to the
extent of the Available Collections Amount for such Payment Date and any funds withdrawn from the
Capital Account by the Trustee pursuant to Section 3.8, to the Noteholders all interest, principal
and Premium, if any, on each class of Notes in the amounts determined by the Calculation Agent
pursuant to Section 3.5; provided, that payment on a Temporary Regulation S Global Note
shall be made to the Noteholder thereof only in conformity with Section 2.5(c) and payment on any
Note may be deferred as provided in Section 2.5(d). Each payment on any Payment Date other than
the final payment with respect to any class of Notes shall be made by the Trustee or Paying Agent
to the Noteholders as of the Record Date for such Payment Date. The final payment with respect to
any class of Notes, however, shall be made only upon presentation and surrender of such Note by the
Noteholder or its agent at the Corporate Trust Office or agency of the Trustee or Paying Agent in
New York City.

          (b) At such time, if any, as the Notes of any class are issued in the form of Definitive
Notes, payments on a Payment Date shall be made by check mailed to each Noteholder of a Definitive
Note on the applicable Record Date at its address appearing on the Register maintained with respect
to such class of Notes. Alternatively, upon application in writing to the Trustee, not later than
the applicable Record Date, by a Noteholder, any such payments shall be made by wire transfer to an
account designated by such Noteholder at a financial institution in New York City;
provided, that the final payment for any class of Notes shall be made only upon
presentation and surrender of the Definitive Notes of such class by the Noteholder or its agent at
the Corporate Trust Office or agency of the Trustee or Paying Agent. Payments in respect of the
Notes represented by a Global Note (including principal, Premium, if any, and interest) shall be
made by wire transfer of immediately available funds to the account specified by DTC.

          (c) The beneficial owner of a Temporary Regulation S Global Note may arrange to receive
payments through Euroclear or Clearstream on such Temporary Regulation S Global Note only after
delivery by such beneficial owner to Euroclear or Clearstream, as the case may be, of a written
certification substantially in the form of Exhibit G and upon delivery by Euroclear or
Clearstream, as the case may be, to the Paying Agent of a certification or certifications
substantially in the form of Exhibit H. No interest shall be paid to any beneficial owner
and no interest shall be paid to Euroclear or Clearstream on such beneficial owner’s
interest in a Temporary Regulation S Global Note unless Euroclear or Clearstream, as the case
may be, has provided such a certification to the Paying Agent with respect to such interest.

          (d) Not later than five Business Days prior to each Payment Date or any other date on which a
Distribution Report is to be distributed to Noteholders and Beneficial Holders pursuant to Section
2.13(a), the Registrar shall use commercially reasonable efforts to (i) prepare a list (the
“Approved Holder List”) of each Noteholder and Beneficial Holder as of the related Record
Date that has executed and delivered to the Registrar a Confidentiality Agreement and with respect
to which the Issuer has not delivered to the Registrar an Officer’s Certificate

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evidencing that any
such Noteholder or Beneficial Holder is no longer eligible to make the statements set forth in its
expanded Internal Revenue Service Form W-9, (ii) obtain from DTC a list (the “DTC List”) of
the Agent Members holding Beneficial Interests in the Notes as of such Record Date, (iii) obtain
from each such Agent Member as of such Record Date the corresponding Beneficial Holders of the
Beneficial Interests held by each such Agent Member set forth on the DTC List as of such Record
Date and prepare a list thereof and of the Beneficial Interests owned by each such Beneficial
Holder (the “Actual Beneficial Holder List”), (iv) prepare a list (the “Escrow
List”), if necessary, that identifies any differences between (x) the Noteholders and
Beneficial Holders listed on the Approved Holder List and (y)(A) the Noteholders of Definitive
Notes set forth in the Register and (B) the Beneficial Holders listed on the Actual Beneficial
Holder List (or those Beneficial Holders that the Registrar actually knows have not executed and
delivered to the Registrar Confidentiality Agreements), in each case as of such Record Date, and
(v) provide the Approved Holder List, the DTC List, the Actual Beneficial Holder List and any
Escrow List to the Issuer, the Servicer and the Trustee. Each Noteholder, Agent Member and
Beneficial Holder hereby agrees, acknowledges and consents that (I) with respect to a Noteholder of
any Notes (other than DTC or its nominee) (x) that as of such Record Date has not executed and
delivered to the Registrar a Confidentiality Agreement or (y) with respect to which the Issuer has
delivered to the Registrar an Officer’s Certificate evidencing that such Noteholder is no longer
eligible to make the statements set forth in its expanded Internal Revenue Service Form W-9 and, in
each case, therefore, is listed on the Escrow List, the Trustee promptly (but in no event less than
three Business Days prior to the applicable Payment Date) shall use commercially reasonable efforts
to notify such Noteholder of such failure and, on the applicable Payment Date, cause any payment of
principal, Premium, if any, or interest on such Notes to be paid directly to the Escrow Account and
(II) with respect to a Beneficial Holder of any Beneficial Interest in a Note (x) that as of such
Record Date has not executed and delivered to the Registrar a Confidentiality Agreement or (y) with
respect to which the Issuer has delivered to the Registrar an Officer’s Certificate evidencing that
such Beneficial Holder is no longer eligible to make the statements set forth in its expanded
Internal Revenue Service Form W-9 and, in each case, therefore, is listed on the Escrow List, the
Trustee promptly (but in no event less than three Business Days prior to the applicable Payment
Date) shall use commercially reasonable efforts to cause the Beneficial Interest of such Beneficial
Holder to be transferred into the name of the Trustee (including the Trustee acting as an Agent
Member with respect to such Beneficial Interests) and shall use commercially reasonable efforts to
cause any payment of principal, Premium, if any, or interest on such Notes or Beneficial Interests
received on such Payment Date to be deposited into the Escrow Account upon receipt thereof;
provided, that the Record Date with respect only to such Beneficial Holder shall be changed
to the Business Day immediately prior to the related Payment Date. Upon receipt by the Trustee and
the Issuer of written notice from the Registrar that the applicable Noteholder or Beneficial
Holder has executed and delivered to the Registrar a Confidentiality Agreement or (in the
event the Issuer has delivered to the Registrar an Officer’s Certificate evidencing that such
Noteholder or Beneficial Holder is no longer eligible to make the statements set forth in its
Expanded Internal Revenue Service Form W-9) has provided assurance as to such Noteholder’s or
Beneficial Holder’s continuing eligibility in respect of its Expanded Internal Revenue Service Form
W-9, the Trustee will distribute such amounts, without interest, from the Escrow Account to the
Trustee for distribution to each such Noteholder or Beneficial Holder, but prior to the receipt
thereof the Trustee shall be authorized to treat such purported Noteholder or Beneficial

14

 

Holder as
not being a Noteholder or Beneficial Holder, as the case may be, for purposes of this Indenture.

          (e) To the extent that the full amount of any interest due on the Class A Notes is not paid in
full on any Payment Date and funds are deposited into the Collection Account following such Payment
Date but prior to the third Business Day prior to the immediately succeeding Calculation Date,
notwithstanding anything to the contrary in this Indenture, the Trustee shall use such funds to pay
to the Noteholders of record the overdue interest together with Additional Interest on such overdue
interest on or before the third Business Day after such funds are deposited; provided, that
all Expenses with respect to such preceding Payment Date contemplated by Section 3.7(a)(i) shall
have been paid. With each such payment the Trustee shall furnish a brief statement to Noteholders
eligible to receive Distribution Reports in accordance with this Indenture indicating the aggregate
amount of funds received and the balance of overdue interest (and interest thereon) to which the
payment is being applied. Any such payment shall be made to the Noteholders of record as of the
third Business Day preceding the date of each such payment. Any funds that are deposited on or
after the third Business Day prior to the immediately succeeding Calculation Date shall be held in
the Collection Account and applied in accordance with this Indenture on the next succeeding Payment
Date.

     Section 2.6 Minimum Denominations. Each class of Notes shall be issued in minimum denominations
of $250,000 or integral multiples of $1,000 in excess thereof.

     Section 2.7 Transfer and Exchange; Cancellation. The Notes are issuable only in fully registered
form without coupons. A Noteholder or a Beneficial Holder may transfer a Note or a Beneficial
Interest therein only by written application to the Registrar stating the name of the proposed
transferee and otherwise complying with the terms of this Indenture, including the requirement for
the execution and delivery of a Confidentiality Agreement by such proposed transferee to the
Registrar relating to such transfer as set forth in Section 2.11(j). No such transfer shall be
effected until, and such proposed transferee shall succeed to the rights of a Noteholder or a
Beneficial Holder only upon, final acceptance and registration of the transfer by the Registrar and
confirmation by the Registrar pursuant to Section 2.11(j) that such Noteholder or such Beneficial
Holder has executed and delivered an appropriate Confidentiality Agreement to the Registrar.

     Prior to the due presentment for registration of transfer of a Note and satisfaction of the
requirements specified in the last sentence of the preceding paragraph, the Issuer and the Trustee
may deem and treat the applicable registered Noteholder as the absolute owner and holder of
such Note for the purpose of receiving payment of all amounts payable with respect to such Note and
for all other purposes and shall not be affected by any notice to the contrary. The Registrar (if
different from the Trustee) shall promptly notify the Trustee in writing and the Trustee shall
promptly notify the Issuer of each request for a registration of transfer of a Note by furnishing
the Issuer a copy of such request.

     Furthermore, any Noteholder of a Global Note shall, by acceptance of such Global Note, agree
that, subject to Section 2.10(b) and Section 2.11, transfers of Beneficial Interests in such Global
Note may be effected only through a book-entry system maintained by the Noteholder of such Global
Note (or its agent) and that ownership of a Beneficial Interest in such Global Note

15

 

shall be
required to be reflected in a book-entry system. When Notes are presented to the Registrar with a
request to register the transfer or to exchange them for an equal principal amount of Notes of
other authorized denominations, the Registrar shall register the transfer or make the exchange as
requested if its requirements for such transactions are met (including, in the case of a transfer,
that such Notes are duly endorsed or accompanied by a written instrument of transfer in form
satisfactory to the Trustee and Registrar duly executed by the Noteholder thereof or by an attorney
who is authorized in writing to act on behalf of the Noteholder). To permit registrations of
transfers and exchanges, the Issuer shall execute and the Trustee shall authenticate Notes at the
Registrar’s request. Except as set forth in Section 2.8 and Section 2.9, no service charge shall
be made for any registration of transfer or exchange or redemption of the Notes.

     The Registrar shall not be required to exchange or register the transfer of any Notes as above
provided during the 15-day period preceding the Final Legal Maturity Date of any such Notes or
during a 15-day period preceding the first mailing of any notice of Redemption or Refinancing of
Notes to be redeemed or refinanced. The Registrar shall not be required to exchange or register
the transfer of any Notes that have been selected, called or are being called for Redemption or
Refinancing except, in the case of any Notes where written notice has been given that such Notes
are to be redeemed in part, the portion thereof not so to be redeemed.

     The Issuer at any time may deliver Notes to the Trustee for cancellation. The Trustee and no
one else shall cancel and destroy in accordance with its customary practices in effect from time to
time (subject to the record retention requirements of the Exchange Act) any such Notes, together
with any other Notes surrendered to it for registration of transfer, exchange or payment. The
Issuer may not issue new Notes (other than Refinancing Notes issued in connection with any
Refinancing) to replace Notes it has redeemed, paid or delivered to the Trustee for cancellation.

     Section 2.8 Mutilated, Destroyed, Lost or Stolen Notes. If any Note shall become mutilated,
destroyed, lost or stolen, the Issuer shall, upon the written request of the Noteholder thereof and
presentation of the Note or satisfactory evidence of destruction, loss or theft thereof to the
Trustee or Registrar and a confirmation by the Registrar to the Trustee that such Noteholder (or
Beneficial Holder of the Beneficial Interest therein) has executed and delivered to the Registrar a
Confidentiality Agreement, issue, and the Trustee shall authenticate and the Trustee or Registrar
shall deliver in exchange therefor or in replacement thereof, a new Note, payable to such
Noteholder in the same principal amount, of the same
maturity, with the same payment schedule, bearing the same interest rate and dated the date of
its authentication. If the Note being replaced has become mutilated, such Note shall be
surrendered to the Trustee or the Registrar and forwarded to the Issuer by the Trustee or such
Registrar. If the Note being replaced has been destroyed, lost or stolen, the Noteholder thereof
shall furnish to the Issuer, the Trustee and the Registrar (a) such security or indemnity as may be
required by the Issuer, the Trustee and the Registrar to save each of them harmless (an unsecured
indemnity from any QIB being satisfactory security or indemnity) and (b) evidence satisfactory to
the Issuer, the Trustee and the Registrar of the destruction, loss or theft of such Note and of the
ownership thereof (an affidavit from any QIB being satisfactory evidence). The Noteholders will be
required to pay any tax or other governmental charge imposed in connection with such exchange or
replacement and any other expenses (including the fees and expenses of the Trustee and the
Registrar) connected therewith.

16

 

     Section 2.9 Payments of Transfer Taxes. Upon the transfer of any Note or Notes pursuant to
Section 2.7, the Issuer or the Trustee may require from the party requesting such new Note or Notes
payment of a sum to reimburse the Issuer or the Trustee for, or to provide funds for the payment
of, any transfer tax or similar governmental charge payable in connection therewith.

     Section 2.10 Book-Entry Provisions.

          (a) Global Notes shall (i) be registered in the name of DTC or a nominee of DTC, (ii) be
delivered to the Trustee as custodian for DTC and (iii) bear the Private Placement Legend. In
accordance with the requirements of DTC, the Issuer will cause the Trustee to authenticate an
additional Global Note or additional Global Notes in the appropriate principal amount such that no
Global Note may exceed an aggregate principal amount of $500,000,000 at any time.

     Members of, or participants in, DTC (“Agent Members”) shall have no rights under this
Indenture with respect to any Global Note held on their behalf by DTC, or the Trustee as its
custodian, or under such Global Note, and DTC may be treated by the Issuer, the Trustee and any
agent of the Issuer or the Trustee as the absolute owner of such Global Note for all purposes
whatsoever.

     Whenever notice or other communication to the Noteholders of any class of Global Notes is
required under this Indenture, unless and until Definitive Notes shall have been issued pursuant to
Section 2.10(b), the Trustee shall give all such notices and communications specified herein to be
given to Noteholders of such class of Global Notes to DTC and/or the Agent Members, and shall make
available additional copies as requested by such Agent Members, subject to the limitations on
distribution contained in Section 2.13.

     Notwithstanding the foregoing, nothing herein shall prevent the Issuer, the Trustee or any
agent of the Issuer or the Trustee from giving effect to any written certification, proxy or other
authorization furnished by DTC or impair, as between DTC and its Agent Members, the operation of
customary practices governing the exercise of the rights of a Noteholder under any Global Note.
Neither the Issuer nor the Trustee shall be liable for any delay by DTC in
identifying the Agent Members in respect of the Global Notes, and the Issuer and the Trustee
may conclusively rely on, and shall be fully protected in relying on, instructions from DTC for all
purposes (including with respect to the registration and delivery, and the respective principal
amounts, of any Global Notes to be issued).

          (b) Transfers of a Global Note shall be limited to transfers of such Global Note in whole, but
not in part, to DTC, its successors or their respective nominees. Interests of Agent Members in a
Global Note may be transferred in accordance with the rules and procedures of DTC and the
provisions of Section 2.11. Except as set forth in Section 2.11(a), Definitive Notes shall be
issued to the individual Agent Members or Beneficial Holders or their nominees in exchange for
their Beneficial Interests in a Global Note with respect to any class of Notes only if (i) the
Issuer advises the Trustee in writing that DTC is no longer willing or able to properly discharge
its responsibilities as depositary with respect to such class of Notes and the Trustee or the
Issuer is unable to appoint a qualified successor within 90 days of such notice, (ii) the Issuer,

17

 

at its option, elects to terminate the book-entry system through DTC or (iii) during the occurrence
of an Event of Default with respect to such class of Notes, Noteholders of a majority of the
Outstanding Principal Balance of such class of Notes advise the Issuer, the Trustee and DTC through
the Agent Members in writing that the continuation of a book-entry system through DTC (or a
successor thereto) is no longer in the best interests of the Noteholders of such class. Upon the
occurrence of any event described in the immediately preceding sentence, the Trustee shall notify
all affected Noteholders of such class, through DTC, of the occurrence of such event and of the
availability of Definitive Notes of such class; provided, however, that in no event
shall the Temporary Regulation S Global Note be exchanged for Definitive Notes prior to the later
of (x) the Regulation S Global Note Exchange Date and (y) the date of receipt by the Issuer of any
certificates determined by it to be required pursuant to Rule 903 or 904 under the Securities Act.
Upon surrender to the Trustee of the Global Notes of such class held by DTC, accompanied by
registration instructions from DTC for registration of Definitive Notes, the Issuer shall issue and
the Trustee shall authenticate and deliver the Definitive Notes of such class to the Agent Members
and Beneficial Holders of such class or their nominees in accordance with the instructions of DTC.

     None of the Issuer, the Registrar, the Paying Agent or the Trustee shall be liable for any
delay in delivery of such instructions and may conclusively rely on, and shall be fully protected
in relying on, such registration instructions. Upon the issuance of Definitive Notes of such
class, the Trustee shall recognize the Persons in whose name the Definitive Notes are registered in
the Register as Noteholders hereunder. Neither the Issuer nor the Trustee shall be liable if the
Trustee or the Issuer is unable to locate a qualified successor to DTC.

     Definitive Notes of any class will be freely transferable and exchangeable for Definitive
Notes of the same class at the office of the Trustee or the office of the Registrar upon compliance
with the requirements set forth herein. In the case of a transfer of only part of a holding of
Definitive Notes, a new Definitive Note shall be issued to the transferee in respect of the part
transferred and a new Definitive Note in respect of the balance of the holding not transferred
shall be issued to the transferor and may be obtained at the office of the applicable Registrar.

          (c) Any Beneficial Interest in one of the Global Notes as to any class that is transferred to
a Person who takes delivery in the form of an interest in another Global Note will,
upon transfer, cease to be an interest in such Global Note and become an interest in such
other Global Note and, accordingly, will thereafter be subject to all transfer restrictions, if
any, and other procedures applicable to Beneficial Interests in such other Global Note for as long
as it remains such an interest.

          (d) Any Definitive Note delivered in exchange for an interest in a Global Note pursuant to
Section 2.10(b) shall bear the Private Placement Legend applicable to a Global Note.

     Section 2.11 Special Transfer Provisions.

          (a) The following provisions shall apply with respect to any proposed transfer of a Beneficial
Interest in a 144A Global Note, a Permanent Regulation S Global Note or a Definitive Note to any
Institutional Accredited Investor that is not a QIB (excluding Non-U.S. Persons) prior to the
Resale Restriction Termination Date:

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          (i) The Registrar shall register the transfer of any Definitive Note if the proposed
transferee has delivered to the Registrar (A) a certificate substantially in the form of
Exhibit J (such certificate also to be delivered to the Issuer), (B) an Opinion of
Counsel acceptable to the Issuer that such transfer is in compliance with the Securities Act
and (C) a Confidentiality Agreement duly executed by such transferee.

          (ii) If the proposed transferor is an Agent Member holding a Beneficial Interest in a
144A Global Note or a Permanent Regulation S Global Note, upon receipt by the Registrar of
(A) the documents required by Section 2.11(a)(i), including the Confidentiality Agreement,
and (B) instructions given in accordance with DTC’s and the Registrar’s procedures, the
Registrar shall reflect on its books and records the date and a decrease in the principal
amount of the 144A Global Note or the Permanent Regulation S Global Note, as the case may
be, in an amount equal to the principal amount of the Beneficial Interest in the Global Note
to be transferred, and the Issuer shall execute, and the Trustee shall authenticate and
deliver, one or more Definitive Notes of like tenor and amount.

          (b) The following provisions shall apply with respect to any proposed transfer of a Beneficial
Interest in a 144A Global Note, a Permanent Regulation S Global Note or a Definitive Note to a QIB
(excluding Non-U.S. Persons) prior to the Resale Restriction Termination Date:

          (i) If the Note to be transferred consists of (A) Definitive Notes, the Registrar shall
reflect the transfer on its books and records if such transfer is being made by a proposed
transferor who has checked the box provided for on the form of Note stating, or has
otherwise advised the Issuer and the Registrar in writing, that the sale has been made in
compliance with the provisions of Rule 144A to a transferee who has signed the certification
provided for on the form of Note stating, or has otherwise advised the Issuer and the
Registrar in writing, that (w) it is purchasing the Note for its own account or an account
with respect to which it exercises sole investment discretion and that it and any such
account are QIBs within the meaning of Rule 144A, (x) it is or such QIBs are aware that the
sale to it or them is being made in reliance on Rule 144A and
acknowledge that it has or they have received such information regarding the Issuer as
it has or they have requested pursuant to Rule 144A or has or have determined not to request
such information, (y) it is or such QIBs are aware that the transferor is relying upon the
foregoing representations in order to claim the exemption from registration provided by Rule
144A and (z) it has and all such QIBs have duly executed and delivered to the Registrar a
Confidentiality Agreement or (B) a Beneficial Interest in a 144A Global Note, the transfer
of such Beneficial Interest may be effected only through the book-entry system maintained by
DTC and to the extent provided in the agreement with DTC, and, in each case, each transferee
has delivered to the Registrar a Confidentiality Agreement duly executed by such transferee.

          (ii) If the proposed transferee is an Agent Member, and the Note to be transferred is a
Definitive Note, upon receipt by the Registrar of the documents referred to in Section
2.11(b)(i), including the Confidentiality Agreement, and instructions given in accordance
with DTC’s and the Registrar’s procedures, the Registrar shall reflect on its

19

 

books and
records the date and an increase in the principal amount at maturity of the 144A Global Note
in an amount equal to the principal amount at maturity of the Definitive Note to be
transferred, and the Trustee shall cancel the Definitive Note so transferred (upon written
direction from the Registrar if different from the Trustee).

          (iii) If the proposed transferee is an Agent Member, and the Note to be transferred is
represented by a Beneficial Interest in a Permanent Regulation S Global Note, upon receipt
by the Registrar of the documents referred to in Section 2.11(b)(i), including the
Confidentiality Agreement, and instructions given in accordance with DTC’s and the
Registrar’s procedures, the Registrar shall reflect on its books and records the date and a
decrease in the principal amount of the Permanent Regulation S Global Note in an amount
equal to the principal amount of the Beneficial Interest in the Permanent Regulation S
Global Note to be transferred, and the Registrar shall reflect on its books and records an
increase in the principal amount of the 144A Global Note in an amount equal to such
transferred amount.

          (c) With respect to any proposed transfer of a Beneficial Interest in a Temporary Regulation S
Global Note to an Institutional Accredited Investor prior to the Resale Restriction Termination
Date, the Registrar shall reflect on its books and records the transfer of such Beneficial Interest
(A) if the proposed transferee is a Non-U.S. Person, the proposed transferor has delivered to the
Registrar a certificate substantially in the form of Exhibit I (such certificate also to be
delivered to the Issuer) and the proposed transferee has duly executed and delivered to the
Registrar a Confidentiality Agreement (in which case the transferee will receive a corresponding
Beneficial Interest in the Temporary Regulation S Global Note) or (B) if the proposed transferee is
a QIB and the proposed transferor has checked the box provided for on the form of Note stating, or
has otherwise advised the Issuer and the Registrar in writing, that the sale has been made in
compliance with the provisions of Rule 144A to a transferee who has signed the certification
provided for on the form of Note stating, or has otherwise advised the Issuer and the Registrar in
writing, that (w) it is purchasing the Note (or the Beneficial Interest therein) for its own
account or an account with respect to which it exercises sole investment discretion and that it and
any such account are QIBs within the meaning of Rule 144A, (x) it is or such QIBs are aware that
the sale to it or them is being made in reliance on Rule 144A and
acknowledge that it has or they have received such information regarding the Issuer as it has
or they have requested pursuant to Rule 144A or has or have determined not to request such
information, (y) it is or such QIBs are aware that the transferor is relying upon the foregoing
representations in order to claim the exemption from registration provided by Rule 144A and (z) it
has and all such QIBs have duly executed and delivered to the Registrar a Confidentiality Agreement
(in which case the Registrar shall reflect on its books and records the date and an increase in the
principal amount of the 144A Global Note of the relevant class, in an amount equal to the principal
amount of the Temporary Regulation S Global Note (or the Beneficial Interest therein) of such class
to be transferred, and the Trustee shall decrease the amount of the Temporary Regulation S Global
Note of such class (upon written direction from the Registrar if different from the Trustee)).

          (d) Except as set forth in Section 2.11(c), prior to the Resale Restriction Termination Date,
the following provisions shall apply with respect to any transfer of a Note (or a Beneficial
Interest therein) to a Non-U.S. Person:

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          (i) Except as set forth in Section 2.11(c), prior to the applicable Regulation S Global
Note Exchange Date, the Registrar shall not register or reflect on its books and records any
proposed transfer of a Note (or a Beneficial Interest therein) to a Non-U.S. Person.

          (ii) The Registrar shall register or reflect on its books and records, as the case may
be, any proposed transfer of a Note (or a Beneficial Interest therein) to any Non-U.S.
Person that is an Institutional Accredited Investor if the Note to be transferred is a
Definitive Note or a Beneficial Interest in a 144A Global Note, upon receipt of a
certificate substantially in the form of Exhibit I from the proposed transferor and
a Confidentiality Agreement duly executed and delivered to the Registrar by such Non-U.S.
Person that is an Institutional Accredited Investor.

          (iii) (A) If the proposed transferor is an Agent Member holding a Beneficial Interest
in a 144A Global Note, upon receipt by the Registrar of (x) the documents, if any, required
by Section 2.11(d)(ii) and (y) instructions in accordance with DTC’s and the Registrar’s
procedures, the Registrar shall reflect on its books and records the date and a decrease in
the principal amount of the 144A Global Note in an amount equal to the principal amount of
the Beneficial Interest in such 144A Global Note to be transferred, and (B) if the proposed
transferee is an Agent Member, upon receipt by the Registrar of instructions given in
accordance with DTC’s and the Registrar’s procedures, the Registrar shall reflect on its
books and records the date and an increase in the principal amount of the Permanent
Regulation S Global Note of the relevant class in an amount equal to the principal amount of
the Beneficial Interest in such 144A Global Note or any Definitive Notes issued in exchange
for such Beneficial Interest in such 144A Global Note to be transferred, and the Trustee
shall cancel the Definitive Note, if any, so transferred or decrease the amount of the 144A
Global Note (upon written direction from the Registrar if different from the Trustee).

          (e) With respect to any proposed transfer of any Note (or a Beneficial Interest therein) after
the Resale Restriction Termination Date, the Registrar shall reflect the transfer of
such Note or Beneficial Interest on its books and records (along with any appropriate increase
or decrease in the principal amount at maturity of any Global Note upon receipt by the Registrar of
instructions given in accordance with DTC’s and the Registrar’s procedures) if the proposed
transferee has duly executed and delivered to the Registrar a Confidentiality Agreement.

          (f) Upon the transfer, exchange or replacement of Notes bearing the Private Placement Legend,
the Registrar shall deliver only Notes that bear the Private Placement Legend.

          (g) By its acceptance of any Note bearing the Private Placement Legend, each Noteholder of
such Note acknowledges the restrictions on transfer of such Note set forth in this Indenture and in
the Private Placement Legend and agrees that it will transfer such Note (or the Beneficial Interest
therein) only as provided in this Indenture and in accordance with the Private Placement Legend.
The Registrar shall not register or reflect on its books and records a transfer of any Note (or any
Beneficial Interest therein) unless such transfer complies with the restrictions on transfer of
such Note set forth in this Indenture and in accordance with the Private Placement

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Legend. In
connection with any transfer of Notes (or Beneficial Interests therein), each Noteholder (or
Beneficial Holder) agrees by its acceptance of the Notes (or Beneficial Interests therein) to
furnish the Trustee the certifications and legal opinions described herein to confirm that such
transfer is being made pursuant to an exemption from, or a transaction not subject to, the
registration requirements of the Securities Act; provided, that the Trustee shall not be
required to determine (but may rely on a determination made by the Issuer with respect to) the
sufficiency of any such legal opinions.

          (h) The Notes shall be issued pursuant to an exemption from registration under the Securities
Act. The Issuer agrees that it will not at any time (i) apply to list, list or list upon notice of
issuance, (ii) consent to or authorize an application for the listing or the listing of, or (iii)
enable or authorize the trading of, the Notes on an established securities market, including (w) a
national securities exchange registered under the Exchange Act or exempted from registration
because of the limited volume of transactions, (x) a foreign securities exchange that, under the
law of the jurisdiction where it is organized, satisfies regulatory requirements that are analogous
to the regulatory requirements under the Exchange Act applicable to exchanges described in Section
2.11(h)(w), (y) a regional or local exchange or (z) an over-the-counter market, as the term
“established securities market” and the terms in this Section 2.11(h) are defined for purposes of
Section 7704 of the Code.

          (i) The Trustee shall retain copies of all letters, notices and other written communications
received pursuant to Section 2.10 or this Section 2.11. The Issuer shall have the right to inspect
and make copies of all such letters, notices, Confidentiality Agreements or other written
communications at any reasonable time upon the giving of reasonable written notice to the Trustee.

          (j) Each Noteholder, Agent Member and Beneficial Holder agrees, by acceptance of any Note or
any Beneficial Interest therein, that it will not take any action to transfer any Note (or any
Beneficial Interest therein) to a proposed transferee without causing such proposed transferee to
execute and deliver to the Registrar an appropriate Confidentiality Agreement relating to such
transfer as set forth in this Section 2.11. After the Closing Date with
respect to the Original Class A Notes (or the date of issuance with respect to any Class B
Notes or any Refinancing Notes), forms of Confidentiality Agreements will be available to
Noteholders, Agent Members and Beneficial Holders and proposed transferees of the Notes (or the
Beneficial Interests therein) from the Registrar, initially at the Corporate Trust Office. Each
such Confidentiality Agreement shall be delivered to the Registrar promptly upon execution by the
parties thereto and the Registrar shall record the receipt of such Confidentiality Agreement. The
Registrar shall promptly, but in any event no later than two Business Days after receipt of any
such executed Confidentiality Agreement, furnish a copy of such executed Confidentiality Agreement
to the Trustee, the Issuer and the Servicer and shall maintain a list of proposed transferees
(including Noteholders and Beneficial Holders) who have furnished such executed Confidentiality
Agreements, whether or not such proposed transferees purchase any Notes (or any Beneficial
Interests therein), and make such list available for inspection at the request of the Trustee, the
Issuer or the Servicer.

          (k) Notwithstanding any other provision contained in this Indenture to the contrary, any
Noteholder or Beneficial Holder may assign a security interest in, or pledge, all or

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any portion of
the Notes (or any interest therein) held by it to a trustee (or other similar representative) under
any indenture, loan agreement or similar agreement to which such Noteholder or Beneficial Holder is
party in support of any obligations of such Noteholder or Beneficial Holder to a holder or holders
of securities or other obligations issued by such Noteholder or Beneficial Holder; provided, that
no such assignment or pledge shall release the assigning or pledging Noteholder or Beneficial
Holder from its obligations hereunder.

     Section 2.12 Temporary Definitive Notes. Pending the preparation of Definitive Notes of any class,
the Issuer may execute and the Trustee may authenticate and deliver temporary Definitive Notes of
such class that are printed, lithographed, typewritten or otherwise produced, in any denomination,
containing substantially the same terms and provisions as are set forth in the applicable Exhibit
or in any indenture supplemental hereto, except for such appropriate insertions, omissions,
substitutions and other variations relating to their temporary nature as the Manager executing such
temporary Definitive Notes may determine, as evidenced by his or her execution of such temporary
Definitive Notes.

     If temporary Definitive Notes of any class are issued, the Issuer shall cause such Definitive
Notes of such class to be prepared without unreasonable delay. After the preparation of Definitive
Notes of such class, the temporary Definitive Notes shall be exchangeable for Definitive Notes upon
surrender of such temporary Definitive Notes at the Corporate Trust Office, without charge to the
Noteholder thereof. Upon surrender for cancellation of any one or more temporary Definitive Notes
of any class, the Issuer shall execute and the Trustee shall authenticate and deliver in exchange
therefor Definitive Notes of like class, in authorized denominations and in the same aggregate
principal amounts. Until so exchanged, such temporary Definitive Notes shall in all respects be
entitled to the same benefits under this Indenture as Definitive Notes.

     Section 2.13 Statements to Noteholders.

          (a) On each Payment Date and any other date for distribution of any payments with respect to
any class of Notes then Outstanding, the Trustee shall deliver a report, covering the information
set forth in Exhibit D and prepared by the Servicer, giving effect to such payments (each,
a “Distribution Report”), to (i) each Noteholder and Beneficial Holder included on the
Approved Holder List, (ii) the Issuer, (iii) the Calculation Agent and (iv) the Parent, and to no
other Person. Each Noteholder and Beneficial Holder shall be entitled to receive the Distribution
Report only if such Noteholder or Beneficial Holder has executed and delivered to the Registrar a
Confidentiality Agreement.

          (b) Each Distribution Report provided to each Noteholder and Beneficial Holder by the Trustee
for each Payment Date pursuant to Section 2.13(a), commencing March 30, 2007, shall be accompanied
by (i) a statement prepared by the Servicer setting forth an analysis of the Collection Account
activity for the period commencing on the day next following the preceding Calculation Date and
ending on the Calculation Date relating to such Payment Date, (ii) such information, if any, that
the Parent shall have provided to the Trustee pursuant to Section 6.3 of the Purchase and Sale
Agreement during the Interest Accrual Period then ended and (iii) the information, if any, that the
Issuer shall have provided to the Trustee pursuant to Section 5.3 (or

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the Servicer shall have
provided to the Trustee pursuant to Section 4.1 of the Servicing Agreement) during the Interest
Accrual Period then ended.

          (c) After the end of each calendar year but not later than the latest date permitted by law,
the Trustee shall (or shall instruct any Paying Agent to) furnish to each Person who at any time
during such calendar year was a Noteholder of any class of Notes a statement (for example, a Form
1099 or any other means required by law) prepared by the Trustee containing the sum of the amounts
determined pursuant to the information covered by Exhibit D with respect to the class of
Notes for such calendar year or, in the event such Person was a Noteholder of any class of Notes
during only a portion of such calendar year, for the applicable portion of such calendar year, and
such other items as are readily available to the Trustee and which a Noteholder shall reasonably
request as necessary for the purpose of such Noteholder’s preparation of its U.S. federal income or
other tax returns. So long as any of the Notes are registered in the name of DTC or its nominee,
such report and such other items will be prepared on the basis of such information supplied to the
Trustee by DTC and the Agent Members and will be delivered by the Trustee to DTC and by DTC to the
applicable Beneficial Holders in the manner described above. In the event that any such
information has been provided by any Paying Agent directly to such Person through other tax-related
reports or otherwise, the Trustee in its capacity as Paying Agent shall not be obligated to comply
with such request for information.

          (d) At such time, if any, as the Notes of any class are issued in the form of Definitive
Notes, the Trustee shall prepare and deliver the information described in Section 2.13(c) to each
Noteholder of a Definitive Note of such class for the relevant period of beneficial ownership of
such Definitive Note as appears on the books and records of the Trustee, subject to confirmation
that each such Noteholder has executed and delivered to the Registrar a Confidentiality Agreement.

          (e) The Trustee shall be at liberty to sanction any method of giving notice to the Noteholders
of any class if, in its opinion, such method is reasonable, having regard to the number and
identity of the Noteholders of such class and/or to market practice then prevailing, is in the best
interests of the Noteholders of such class, and any such notice shall be deemed to have been given
on such date as the Trustee may approve; provided, that notice of such method is given to
the Noteholders of such class in such manner as the Trustee shall require.

     Section 2.14 CUSIP, CINS, ISIN and Private Placement Numbers. The Issuer in issuing the Notes may
use CUSIP, CINS, ISIN, private placement or other identification numbers (if then generally in
use), and, if so, the Trustee shall use such CUSIP, CINS, ISIN, private placement or other
identification numbers, as the case may be, in notices of redemption or exchange as a convenience
to Noteholders; provided, that any such notice shall state that no representation is made
as to the correctness of such numbers either as printed on the Notes or as contained in any notice
of redemption or exchange and that reliance may be placed only on the other identification numbers
printed on the Notes; provided, further, that failure to use CUSIP, CINS, ISIN,
private placement or other identification numbers in any notice of redemption or exchange shall not
affect the validity or sufficiency of such notice.

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     Section 2.15 Refinancing Notes.

          (a) Subject to Section 2.15(b), Section 2.15(c) and Section 2.15(d), the Issuer may issue
Refinancing Notes pursuant to this Indenture for the purpose of refinancing all of the Outstanding
Principal Balance of any class of Notes (including a refinancing of Refinancing Notes). Each
refinancing of any class of Notes with the proceeds of an offering of Refinancing Notes (a
“Refinancing”) shall be authorized pursuant to one or more Manager Resolutions. Each
Refinancing Note shall be designated generally as a Note for all purposes under this Indenture,
with such further designations added or incorporated in such title as specified in the related
Manager Resolution or in any indenture supplemental hereto providing for the issuance of such Notes
or specified in the form of such Notes, as the case may be. The Refinancing Notes shall be issued
on the Payment Date on which the Redemption in whole of the class of Notes being refinanced is to
occur as provided in Section 3.11.

          (b) A Refinancing of any class of Notes shall be effected as a Redemption pursuant to Section
3.10, provided that a Refinancing of the Original Class A Notes shall be effected as an Optional
Redemption pursuant to Section 3.10(b). On the date of any Refinancing, the Issuer shall issue and
sell an aggregate principal amount of Refinancing Notes in an amount equal to (when added to the
Available Collections Amount and any funds in the Holdback Account and the Capital Account to be
used in connection with such refinancing) the Redemption Price of the Notes being refinanced
thereby plus the Refinancing Expenses relating thereto. The proceeds of each sale of Refinancing
Notes shall be used to make the deposit required by Section 3.11(b) and to pay such Refinancing
Expenses. Once a notice of a Redemption in respect of any Refinancing is published in accordance
with Section 3.11(a), each class of Notes to which such notice applies shall become due and payable
on the Refinancing Date stated in such notice at their Redemption Price.

          (c) Each Refinancing Note shall contain such terms as may be established in or pursuant to the
related Manager Resolution (subject to Section 2.1) or in any indenture supplemental hereto
providing for the issuance of such Notes or specified in the form of such Notes to the extent
permitted below. No less than seven Business Days prior to the issuance of any Refinancing Notes,
any or all of the following, as applicable, with respect to the related issue of Refinancing Notes
shall have been determined by the Issuer and set forth in such Manager Resolution or in any
indenture supplemental hereto providing for the issuance of such Notes or specified in the form of
such Notes, as the case may be:

          (i) the class of Notes to be refinanced by such Refinancing Notes;

          (ii) the aggregate principal amount of each class of Refinancing Notes which may be
issued in respect of such Refinancing;

          (iii) the proposed date of such Refinancing;

          (iv) if applicable, the Base Case Final Payment Date and the Final Legal Maturity Date
of each class of such Refinancing Notes;

          (v) the rate at which such Refinancing Notes shall bear interest or the method by which
such rate shall be determined;

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          (vi) the denomination or denominations in which any class of such Refinancing
Notes shall be issuable;

          (vii) whether any such Refinancing Notes are to be issuable initially in temporary or
permanent global form and, if so, whether beneficial owners of interests in any such
permanent global Refinancing Note may exchange such interests for Refinancing Notes of such
class and of like tenor of any authorized form and denomination and the circumstances under
which any such exchanges may occur, if other than in the manner provided in Section 2.7, and
the circumstances under which and the place or places where any such exchanges may be made
and the identity of any initial depositary therefor; and

          (viii) any other terms, conditions, rights and preferences (or limitations on such
rights and preferences) relating to the class of Refinancing Notes (which terms shall comply
with Applicable Law and not be inconsistent with the requirements or restrictions of this
Indenture).

          (d) If any of the terms of any issue of Refinancing Notes are established by action taken
pursuant to one or more Manager Resolutions, such Manager Resolutions shall be delivered to the
Trustee setting forth the terms of such Refinancing Notes.

     Section 2.16 Class B Notes.

          (a) Subject to Section 2.16(b), Section 2.16(c) and Section 2.16(d), the Issuer may issue
Class B Notes pursuant to this Indenture (a “Class B Issuance”) for any purpose, including,
at the option of the Issuer, for the purpose of funding a redemption of the Class A Notes, in whole
or in part. Each Class B Issuance shall be authorized pursuant to one or more Manager Resolutions.
Each Class B Note shall be designated generally as a Note for all purposes under this Indenture.
Each Class B Note shall have such further designations added or incorporated in such title as
specified in the related Manager Resolution or in any indenture supplemental hereto providing for
the issuance of such Notes or specified in the form of such Notes, as the case may be. If the
proceeds of the Class B Notes are being used to redeem the Class A Notes, in whole or in part, the
Class B Notes shall be issued on the Payment Date on which the Optional Redemption of the Class A
Notes being refinanced is to occur as provided in Section 3.11.

          (b) If the proceeds of the Class B Notes are being used to redeem any Class A Notes, such
redemption shall be effected as an Optional Redemption pursuant to Section 3.10. On the date of
any such Optional Redemption, the Issuer shall issue and sell an aggregate principal amount of
Class B Notes in an amount equal to the Redemption Price of the Notes being refinanced thereby plus
the Transaction Expenses relating thereto. The proceeds of each sale of Class B Notes shall be
used to make the deposit required by Section 3.11(b), if applicable, to pay such Transaction
Expenses and/or for such other purposes, if any, as shall be specified in the Manager Resolution
authorizing the issuance of such Class B Notes. Once a notice of Redemption in respect of any
Class B Issuance is published in accordance with Section 3.11(a), each class of Notes to which such
notice applies shall become due and payable on the Redemption Date stated in such notice at their
Redemption Price.

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          (c) Each Class B Note shall contain such terms as may be established in or pursuant to the
related Manager Resolution (subject to Section 2.1) or in any indenture supplemental hereto
providing for the issuance of such Notes or specified in the form of such Notes to the extent
permitted herein, and shall be subordinate to the Class A Notes to the extent provided in this
Indenture. No less than seven Business Days prior to the issuance of the Class B Notes, any or all
of the following, as applicable, with respect to the related Class B Issuance shall have been
determined by the Issuer and set forth in such Manager Resolution or in any indenture supplemental
hereto or specified in the form of such Class B Notes, as the case may be, with respect to the
Class B Notes to be issued:

          (i) the aggregate principal amount of any such Class B Notes that may be issued;

          (ii) the proposed date of such Class B Issuance;

          (iii) if applicable, the Base Case Final Payment Date and the Final Legal Maturity Date
of any such Class B Notes;

          (iv) whether any such Class B Notes are to have the benefit of any reserve account and,
if so, the amount and terms thereof;

          (v) the rate at which such Class B Notes shall bear interest or the method by which
such rate shall be determined;

          (vi) the denomination or denominations in which such Class B Notes shall be issuable;

          (vii) whether any such Class B Notes are to be issuable initially in temporary or
permanent global form and, if so, whether beneficial owners of interests in any such
permanent global Class B Note may exchange such interests for Class B Notes of like tenor
and of any authorized form and denomination and the circumstances under which any such
exchanges may occur, if other than in the manner provided in Section 2.7, and the
circumstances under which and the place or places where any such exchanges may be made and
the identity of any initial depositary therefor; and

          (viii) any other terms, conditions, rights and preferences (or limitations on such
rights and preferences) relating to Class B Notes (which terms shall comply with Applicable
Law and not be inconsistent with the requirements or restrictions of this Indenture).

          (d) If any of the terms of any issue of Class B Notes are established by action taken pursuant
to one or more Manager Resolutions, such Manager Resolutions shall be delivered to the Trustee
setting forth the terms of such Class B Notes.

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ARTICLE III

ACCOUNTS; PRIORITY OF PAYMENTS

     Section 3.1 Establishment of Accounts.

          (a) Pursuant to the terms of the Servicing Agreement, the Issuer will cause the Servicer,
acting on behalf of the Issuer, to establish and maintain with the Operating Bank on its books and
records in the name of the Issuer, subject to the Liens established under this Indenture, (i) a
collection account (the “Collection Account”), (ii) if applicable, a redemption account
(the “Redemption Account”), (iii) a capital contribution account (the “Capital
Account”), (iv) an escrow account (the “Escrow Account”), (v) a holdback account (the
“Holdback Account”) and (vi) any additional accounts the establishment of which is set
forth in a Manager Resolution delivered by the Issuer to the Servicer and the Trustee, in each case
at such time as is set forth in this Section 3.1 or in such Manager Resolution. Each Account shall
be established and maintained as an Eligible Account so as to create, perfect and establish the
priority of the Liens established under this Indenture in such Account and all cash, Eligible
Investments and other property from time to time deposited therein and otherwise to effectuate the
Liens under this Indenture.

          (b) The Trustee shall have sole dominion and control over the Accounts (including, among other
things, the sole power to direct withdrawals or transfers from the Accounts and to direct the
investment and reinvestment of funds in the Accounts, subject to Section 3.2). The Trustee shall
make withdrawals and transfers from the Accounts in accordance with the terms of this Indenture
based on the Relevant Information and as calculated by it pursuant to this Indenture. Each of the
Issuer and the Trustee acknowledges and agrees that the Accounts are “deposit accounts” or
“investment property” within the meaning of Section 9-102 of the UCC and that the Trustee has
“control”, for purposes of Section 9-314 of the UCC, of Accounts that are maintained with the
Trustee as the Operating Bank. The Issuer agrees that, if any Account is established or maintained
with any Operating Bank other than the Trustee, the Issuer shall cause (or direct the Servicer to
cause) such Operating Bank to enter into an agreement with the Trustee, the Issuer and the Servicer
pursuant to which such Operating Bank agrees to comply with any and all instructions of the Trustee
directing the disposition, investment and reinvestment of funds in all Accounts maintained with
such Operating Bank without the further consent of the Issuer or the Servicer, and the Issuer shall
take such other actions as are reasonably required by the Trustee to establish its “control”, for
purposes of Section 9-314 of the UCC, over any such Accounts.

          (c) If, at any time, any Account ceases to be an Eligible Account, the Issuer will cause the
Servicer or an agent thereof, within ten Business Days, to establish a new Account meeting the
conditions set forth in this Section 3.1 in respect of such Account and transfer any cash or
investments in the existing Account to such new Account, and, from the date such new Account is
established, it shall have the same designation as the existing Account. If the Operating Bank
should change at any time, then the Issuer will cause the Servicer, acting on behalf of the Issuer,
to thereupon promptly establish replacement Accounts as necessary at the successor Operating Bank
and transfer the balance of funds in each Account then maintained at the former Operating Bank
pursuant to the terms of the Servicing Agreement to such successor Operating Bank.

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          (d) The Issuer will cause the Servicer to establish and maintain the Collection Account at the
Operating Bank not later than the Closing Date, and the Collection Account shall bear a designation
clearly indicating that the funds deposited therein are held for the benefit of the Trustee.
Except as expressly provided herein, all Collections shall be deposited in the Collection Account
and transferred therefrom in accordance with the terms of this Indenture. No funds shall be
deposited in the Collection Account that do not constitute Collections except as expressly provided
in this Indenture without the prior written consent of the Trustee.

          (e) Upon receipt of written notice of a Redemption of any class of Notes, the Issuer will
cause the Servicer to establish and maintain a Redemption Account at the Operating Bank which shall
bear a description clearly indicating that the funds or other assets deposited therein are held for
the benefit of the Trustee, who shall hold such amounts for the benefit of the Noteholders of Notes
that are the subject of such Redemption. All amounts received for the purpose of any such
Redemption shall be deposited in such Redemption Account and shall be held in such Account until
such amounts are applied to pay the Redemption Price of such Notes (together with related Expenses)
and such Notes are cancelled by the Trustee.

          (f) The Issuer will cause the Servicer to establish and maintain the Capital Account at the
Operating Bank not later than the Closing Date, and the Capital Account shall bear a designation
clearly indicating that the funds or other assets deposited therein are held for the benefit of the
Trustee into which the Parent shall deposit any capital contributions made to the Issuer. All such
capital contributions shall be held in such Account and transferred (i) to the Collection Account
only to the extent permitted by Section 3.7 and (ii) to the Redemption Account only to the extent
specifically provided for in any written notice of an Optional Redemption delivered to the Trustee
pursuant to Section 3.10(b).

          (g) Upon notice by the Trustee to the Servicer that any Noteholder, Agent Member or Beneficial
Holder has not delivered a Confidentiality Agreement to the Registrar or upon delivery by the
Issuer to the Registrar of an Officer’s Certificate evidencing that any Noteholder or Beneficial
Holder is no longer eligible to make the statements set forth in its Expanded Internal Revenue
Service Form W-9, the Issuer will cause the Servicer to establish and maintain an Escrow Account at
the Operating Bank in the name of the Trustee which shall bear a designation clearly indicating
that the funds or other assets deposited therein are held for the benefit of any such Noteholder,
Agent Member or Beneficial Holder. All amounts withheld from such Noteholder, Agent Member or
Beneficial Holder pursuant to Section 2.5(d) of the Indenture shall be deposited in such Escrow
Account and shall be held in such Account until such amounts are distributed as provided in Section
2.5(d) of the Indenture.

          (h) The Issuer will cause the Servicer to establish and maintain the Holdback Account at the
Operating Bank not later than the Closing Date, and the Holdback Account shall bear a designation
clearly indicating that the funds deposited therein are held for the benefit of the Trustee.
Amounts shall be transferred into the Holdback Account only pursuant to Section 3.3(a)(iv).
Amounts shall be transferred from the Holdback Account to the Collection Account or the Parent, as
the case may be, only pursuant to Section 3.12.

     Section 3.2 Investments of Cash. The Issuer or the Servicer, on its behalf, shall direct the Trustee in writing to invest
and reinvest the funds on deposit in the Accounts in Eligible

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Investments, to the extent such
Eligible Investments are available to the relevant Operating Bank; provided,
however, that, so long as an Event of Default has occurred and is continuing, the Trustee
shall direct each Operating Bank to invest such amount in Eligible Investments described in clause
(d) of the definition thereof from the time of receipt thereof until such time as such amounts are
required to be distributed pursuant to the terms of this Indenture. In the absence of written
direction delivered to the Trustee from the Issuer or the Servicer, the Trustee shall direct each
Operating Bank to invest any funds in Eligible Investments described in clause (d) of the
definition thereof. The Trustee shall direct each Operating Bank to make such investments and
reinvestments in accordance with the terms of the following provisions:

          (a) the Eligible Investments shall have maturities and other terms such that sufficient funds
shall be available to make required payments pursuant to this Indenture on the Business Day
immediately preceding the next occurring Payment Date after such investment is made;

          (b) if any funds to be invested are not received in the Accounts by 1:00 p.m., New York City
time, on any Business Day, such funds shall, if possible, be invested in overnight Eligible
Investments;

          (c) all interest and earnings on Eligible Investments held in the Accounts shall be invested
in Eligible Investments on an overnight basis and credited to the appropriate Account until the
next Payment Date; and

          (d) the Issuer acknowledges that regulations of the U.S. Comptroller of the Currency grant the
Issuer the right to receive confirmations of security transactions as they occur. The Issuer
specifically waives receipt of such confirmations to the extent permitted by Applicable Law and
acknowledges that the Operating Bank will furnish periodic cash transaction statements that will
detail all investment transactions.

     Section 3.3 Closing Date Deposits; Withdrawals and Transfers.

          (a) On the Closing Date, the Trustee shall, subject to the receipt of written direction from
the Issuer upon receipt of the proceeds from the sale by the Issuer of the Notes, make the
following payments from such proceeds in the amounts so directed by the Issuer:

          (i) to such Persons as shall be specified by the Issuer, such Transaction Expenses as
shall be due and payable in connection with the issuance and sale of the Notes;

          (ii) to the Hedge Provider, the initial Hedge Payment, if any, as and if directed by
the Issuer;

          (iii) to the Parent, in accordance with the Purchase and Sale Agreement, an amount
equal to the Cash Purchase Price less the amount contemplated by Section 3.3(a)(iv); and

          (iv) to the Holdback Account, $10,000,000.

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          (b) On the date of issuance of any Class B Notes or any Refinancing Notes, the Trustee shall,
subject to the receipt of written direction from the Issuer upon receipt of the proceeds of the
sale by the Issuer of such Notes, make such payments and transfers as shall be specified in this
Indenture, the related Manager Resolution and any indenture supplemental hereto in respect of such
Notes, copies of which Manager Resolution and indenture supplemental hereto shall be attached to
such written direction.

          (c) The Trustee shall hold all funds received on or prior to the Closing Date from the Note
Purchasers in trust for the Note Purchasers pending completion of the closing of the transactions
contemplated by the Note Purchase Agreements. Upon receipt by the Trustee of the aggregate
Purchase Price from all Note Purchasers, the Trustee shall disburse the Purchase Price in
accordance with this Section 3.3. If the aggregate Purchase Price shall not have been received by
the Trustee by 3:30 p.m. (New York City time) on the Closing Date, or if the closing of the
transactions contemplated by the Note Purchase Agreements shall not otherwise be capable of being
consummated by 3:30 p.m. (New York City time) on the Closing Date, then each Note Purchaser who has
paid its respective portion of the Purchase Price shall have the right to instruct the Trustee at
or after 3:30 p.m. (New York City time) on the Closing Date to return such portion of the Purchase
Price to such Note Purchaser prior to the close of business on the Closing Date or as soon
thereafter as reasonably practicable.

     Section 3.4 Capital Contributions. The Issuer will immediately forward any capital contributions
received by it from the Parent for deposit in the Capital Account.

     Section 3.5 Calculation Date Calculations.

          (a) As soon as reasonably practicable after each Calculation Date (a “Relevant Calculation
Date”), but in no event later than 12:00 noon (New York City time) on the second Business Day
prior to the immediately succeeding Payment Date, the Calculation Agent shall, based on the
Servicer Information received by the Calculation Agent, and based on information known to it or
Relevant Information provided to it, make the following determinations and calculations (and each
of the Trustee and the Issuer (for itself and on behalf of the Servicer) agrees to provide any
Relevant Information reasonably requested by the Calculation Agent for the purpose of making such
determinations and calculations):

          (i) the Available Collections Amount for such Payment Date;

          (ii) (x) the amount of Collections received during the period commencing on the day
immediately following the Calculation Date that immediately preceded such Relevant
Calculation Date and ending on such Relevant Calculation Date and (y) the amount, if any, to
be transferred from the Holdback Account as of the Relevant Calculation Date to the
Collection Account on the Payment Date immediately following the Relevant Calculation Date
in accordance with Section 3.12;

          (iii) the balance of funds on deposit in each Account other than the Collection Account
on such Relevant Calculation Date and the amount of interest and earnings (net of losses and
investment expenses), if any, on investments of funds on deposit therein from the day
immediately following the Calculation Date that

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immediately preceded such Relevant
Calculation Date and ending on such Relevant Calculation Date;

          (iv) the balance of funds on deposit in the Collection Account on such Relevant
Calculation Date and the amount of interest and earnings (net of losses and investment
expenses), if any, on investments of funds on deposit therein from the day immediately
following the Calculation Date that immediately preceded such Relevant Calculation Date and
ending on such Relevant Calculation Date;

          (v) all fees, costs and expenses (including reasonable attorneys’ fees and legal
expenses) of the Noteholders under this Indenture not previously reimbursed;

          (vi) all other Expenses not previously reimbursed, with the amounts shown on all
invoices attached to the Servicer Information received by the Calculation Agent for the
reimbursement or payment of Expenses or Servicing Fees not previously paid or reimbursed;

          (vii) the applicable interest rate on each class of Floating Rate Notes determined on
the Reference Date for the Interest Accrual Period beginning on such Payment Date and the
Interest Amount (including any Additional Interest) on each class of Floating Rate Notes and
Fixed Rate Notes for such Payment Date;

          (viii) if such Payment Date is a Redemption Date on which a Redemption of Notes is
scheduled to occur, the amount necessary to pay the Redemption Price of the Notes to be
repaid on such Redemption Date and the Redemption Premium, if any, to be paid as part of
such Redemption Price;

          (ix) the amount of the Parent Shortfall Payment, if any, to be made on such Payment
Date, provided such payment is being made in accordance with Section 3.10;

          (x) the difference, if any, between the Interest Amount due to the Noteholders of Class
A Notes pursuant to Section 3.7(a)(iii) on such Payment Date and the portion of the
Available Collections Amount available to pay such Interest Amount for such Payment Date (a
“Shortfall”), taking into account any Parent Shortfall Payment determined pursuant
to Section 3.5(a)(ix) and the payment of expenses described in Section 3.5(a)(v) and Section
3.5(a)(vi) payable on such Payment Date and, with respect to each Shortfall, the amount to
be withdrawn from the Capital Account, if any, determined as provided in Section 3.8;

          (xi) the Outstanding Principal Balance of each class of Notes on such Payment Date
immediately prior to any principal payment on such date and the amount of any principal
payment to be made in respect of each class of Notes on such Payment
Date, taking into account the other payments to be made on such Payment Date entitled
to priority pursuant to Section 3.7;

          (xii) the amounts, if any, distributable to the Issuer on such Payment Date pursuant to
Section 3.7(a)(viii);

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          (xiii) the amounts, if any, distributable from the Holdback Account to the Parent on or
prior to such Payment Date pursuant to Section 3.12; and

          (xiv) any other information, determinations and calculations reasonably required in
order to give effect to the terms of this Indenture and the other Transaction Documents.

          (b) Following the calculations and determinations by the Calculation Agent described in
Section 3.5(a), and not later than 1:00 p.m., New York City time, on the second Business Day prior
to the immediately succeeding Payment Date, the Calculation Agent shall provide to each of the
Servicer, the Issuer and the Trustee a calculation report (a “Calculation Report”) listing
such determinations and calculations and the amount of the Available Collections Amount to be
applied on such Payment Date to make each of the payments and transfers contemplated by Section
3.7(a) or Section 3.10(a), and any Parent Shortfall Payment due and payable on such date, as
applicable, setting forth the payments to be made in respect of the Notes. The calculations set
forth in each Calculation Report shall be conclusive and binding on each of the Issuer, the
Servicer, the Trustee and each Noteholder, absent manifest error.

     Section 3.6 Payment Date First Step Transfers. On each Payment Date, the Trustee shall transfer
from any Account (other than the Collection Account) to the Collection Account the amount of
interest and earnings (net of losses and investment expenses), if any, earned as a result of
investments of funds on deposit therein from the day immediately following the Calculation Date
that immediately preceded the Relevant Calculation Date and ending on the Relevant Calculation
Date.

     Section 3.7 Payment Date Second Step Withdrawals.

          (a) On each Payment Date, after the applicable transfers provided for in Section 3.6 have been
made and after making the distributions from the Redemption Account, if any, pursuant to Section
3.10(a), and after the making of any Parent Shortfall Payment pursuant to Section 3.9, the Trustee
shall distribute from the Collection Account the amounts set forth below in the order of priority
set forth below but, in each case, only to the extent that all amounts then required to be paid
ranking prior thereto have been paid in full:

          (i) first, to the payment of all Expenses due and payable on such Payment Date,
with the amounts shown on all invoices attached to the Servicer Information received by the
Trustee for the reimbursement or payment of Expenses not previously paid or reimbursed;

          (ii) second, to the payment of the Servicing Fee for such Payment Date and any
unpaid Servicing Fee in respect of prior Payment Dates;

          (iii) third, to the Trustee for distribution to the Noteholders of the Class A
Notes to the ratable payment of the Interest Amount then due and payable on the Class A
Notes, taking into account any amounts paid pursuant to Section 3.8 on such Payment Date;

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          (iv) fourth, to the Trustee for distribution to the Noteholders of the Class A
Notes, principal payments on the Class A Notes (without premium or penalty), allocated pro
rata in proportion to the Outstanding Principal Balance of such Class A Notes held by such
Noteholders, until the Outstanding Principal Balance of such Class A Notes has been paid in
full;

          (v) fifth, after the Class A Notes have been paid in full, to the Trustee for
distribution to the Noteholders of the Class B Notes, if any, the Interest Amount on the
Class B Notes in accordance with their terms;

          (vi) sixth, after the Class A Notes have been paid in full, to the Trustee for
distribution to the Noteholders of the Class B Notes, if any, payment of the principal
amount of the Class B Notes in accordance with their terms until the Class B Notes have been
paid in full;

          (vii) seventh, after the Notes have been paid in full, to the ratable payment
of all other obligations under this Indenture until all such amounts are paid in full; and

          (viii) eighth, after the Notes have been paid in full, to the Issuer, all
remaining amounts.

     Notwithstanding the foregoing, if funds in the Holdback Account are required to be transferred
to the Collection Account and included in the Available Collections Amount on a Payment Date
pursuant to Section 3.12, such funds shall be transferred by the Trustee to the Collection Account
for distribution to the Noteholders to pay interest on and principal of the Class A Notes (without
premium or penalty) in the amount of such funds, allocated pro rata in proportion to the
Outstanding Principal Balance of the Class A Notes held by such Noteholders, before the Trustee has
made any other distribution from the Collection Account.

          (b) To the extent the Issuer receives amounts from the Trustee from the Collection Account
pursuant to Section 3.7(a)(viii), such amounts may be distributed by the Issuer to the Parent (or
as otherwise directed by the Parent or any Person designated by the Parent to give such directions)
in its sole discretion.

          (c) To the extent that any monies are deposited in the Collection Account to reimburse prior
distributions in respect of a Parent Shortfall, such monies shall be paid to the Trustee on behalf
of the Noteholders prior to giving effect to this Section 3.7 to the extent that such monies
otherwise would have been paid to such Noteholders on the prior respective Payment Date in
accordance with this Section 3.7 in the absence of such Parent Shortfall.

     Section 3.8 Capital Account; Shortfalls. The Available Collections Amount does not include the aggregate amount of funds on deposit
in the Capital Account; provided, that, if the Calculation Agent has determined that a
Shortfall exists pursuant to the Calculation Report with respect to any Payment Date and there is a
positive balance in the Capital Account on the Relevant Calculation Date immediately preceding such
Payment Date, then on such Payment Date the Trustee shall withdraw from the Capital Account an
amount equal to the lesser of the Shortfall and the balance in the Capital Account and distribute
it to the Noteholders of the Class A Notes in payment of the Interest Amount; provided,
further, that the Trustee shall make such a

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withdrawal from the Capital Account in respect
of not more than six Payment Dates in total prior to the Final Legal Maturity Date and in respect
of not more than any three consecutive Payment Dates.

     Section 3.9 Parent Shortfall. If, no later than ten Business Days prior to any Calculation Date,
the Trustee receives written notice of the existence of a Parent Shortfall, the Trustee shall
promptly (but in no event later than the next succeeding Business Day following receipt of such
written notice) notify the Servicer, the Parent and the Issuer of such existence of a Parent
Shortfall. Upon the Issuer or the Parent receiving notification of the same, or upon the Issuer or
the Parent otherwise becoming aware of a Parent Shortfall, the Issuer shall cause the Servicer, no
later than such Calculation Date, to confirm the amount of any such Parent Shortfall in writing to
the Trustee, with a copy to the Issuer and the Parent. Unless the Trustee shall have received
prior to the related Payment Date (i) written notification from the Parent or the Servicer
certifying that any such Parent Shortfall has been cured in full or (ii) written notice from the
Trustee that at least two-thirds of the Outstanding Principal Balance of the Senior Class of Notes
has indicated that such payment shall not be made on such Payment Date, then prior to making any
other distributions pursuant to Section 3.7 or Section 3.8, the Trustee shall make a Parent
Shortfall Payment to Mitsubishi on such Payment Date in the amount of such Parent Shortfall from
the Collection Account; provided, that if Mitsubishi shall refuse to accept such payment,
then such funds shall be returned to the Collection Account for distribution in accordance with
this Indenture.

     Section 3.10 Redemptions.

          (a) On any Payment Date on which any class of Notes is to be the subject of a Redemption, in
whole or in part, the Trustee shall distribute the amounts in the applicable Redemption Account as
provided herein and in the applicable Manager Resolution, including:

          (i) paying to such Persons as shall be specified by the Issuer such Transaction
Expenses as shall be due and payable in connection with the issuance and sale of the
applicable Class B Notes or Refinancing Notes;

          (ii) remitting to the Noteholders of such class of Notes, in accordance with the
Manager Resolution authorizing such Redemption, an amount equal to the Redemption Price plus
Premium, if any, allocated, in the event of a Redemption of such Notes in part, pro rata in
proportion to the Outstanding Principal Balance of such Notes held by such Noteholders; and

          (iii) making such other distributions and payments as shall be authorized and directed
by the Manager Resolution and indentures supplemental hereto executed in connection with
such Redemption.

          (b) Subject to the provisions of Section 3.11, on any Payment Date, the Issuer may elect to
redeem any class of Notes, in whole but not in part, out of the proceeds of the Refinancing Notes,
the Available Collections Amount and any funds in the Holdback Account or the Capital Account in
the case of a Refinancing of such class of Notes, or, in whole or in part, out of amounts available
in the Redemption Account for such purpose, if any, including the

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proceeds of any Class B Notes but
excluding in the case of a Redemption in part any Available Collections Amount and any funds in the
Holdback Account or the Capital Account, in each case, at the Redemption Price (any such
redemption, an “Optional Redemption”). The Issuer shall give written notice of any such
Optional Redemption to the Trustee and the Servicer not later than five Business Days prior to the
date on which notice is to be given to Noteholders in accordance with Section 3.11(a) (unless the
Trustee and the Servicer agree to waive or limit the requirement for such notice). Such written
notice to the Trustee shall include a copy of the Manager Resolution authorizing such Optional
Redemption and shall set forth the relevant information regarding such Optional Redemption,
including the information to be included in the notice given pursuant to Section 3.11(a).

          (c) An indenture supplemental hereto providing for the issuance of any Class B Notes or
Refinancing Notes may authorize one or more redemptions, in whole or in part, of such Notes, on
such terms and subject to such conditions as shall be specified in such indenture supplemental
hereto.

     Section 3.11 Procedure for Redemptions.

          (a) The Trustee (or the Servicer acting as its agent (or any authorized agent of the
Servicer)) shall give written notice in respect of any Redemption of any class of Notes under
Section 3.10 to each Noteholder of such Notes at least 30 days but not more than 60 days before
such Redemption Date. The Trustee shall not be permitted to deliver any notice under this Section
3.11(a) unless and until it shall have received evidence reasonably satisfactory to it that amounts
sufficient to pay (i) the Redemption Price for such class of Notes, (ii) all accrued and unpaid
interest, including Additional Interest, in respect of each class of Notes ranking pari passu
therewith or prior thereto and (iii) the Transaction Expenses relating to such Redemption are
deposited, or will be deposited on or before the Redemption Date, in the Redemption Account
established in respect of such Redemption. Each notice in respect of a Redemption given pursuant
to this Section 3.11(a) shall state (A) the applicable Redemption Date, (B) the Trustee’s
arrangements for making payments in respect of such Redemption, (C) the Redemption Price of the
Notes to be redeemed, (D) in the case of a Redemption of the Notes of any class in part, the
portion of the Outstanding Principal Balance of the Notes that will be redeemed, (E) that Notes to
be redeemed in a Redemption in whole must be surrendered (which action may be taken by any
Noteholder or its authorized agent) to the Trustee to collect the Redemption Price on such Notes
and (F) that, unless the Issuer defaults in the payment of the Redemption Price, interest on Notes
called for Redemption in whole shall cease to accrue on and after the Redemption Date. If mailed
in the manner herein provided, the notice shall be conclusively presumed to have been
given whether or not the Noteholder receives such notice. Failure to give notice or any
defect in the notice shall not affect the validity of the notice.

          (b) On or before any Redemption Date in respect of a Redemption under Section 3.10, the Issuer
shall, to the extent an amount equal to the Redemption Price of the Notes to be redeemed and any
Refinancing Expenses relating thereto as of the Redemption Date is not then held by the Issuer or
on deposit in the Redemption Account, deposit or cause to be deposited in the Redemption Account an
amount in immediately available funds equal to such amount.

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          (c) After notice has been given under Section 3.11(a) as to the Redemption Date in
respect of any Redemption, the Outstanding Principal Balance of the Notes to be redeemed on such
Redemption Date shall become due and payable at the Corporate Trust Office, and from and after such
Redemption Date (unless there shall be a default by the Issuer in the payment of the Redemption
Price) such principal amount shall cease to bear interest. Upon surrender of any Note for
redemption in accordance with such notice, the Redemption Price of such Note shall be paid as
provided for in Section 3.10(a). If any Note to be redeemed shall not be so paid upon surrender
thereof for redemption, the Outstanding Principal Balance thereof shall continue to bear interest
from the Redemption Date until paid at the interest rate applicable to such Note. All Notes that
are redeemed will be surrendered to the Trustee for cancellation and may not be reissued or resold.

     Section 3.12 Holdback Account. If (i) by March 23, 2008, the Issuer has not delivered to the
Trustee a copy of the U.K. Tax Confirmation or (ii) prior to March 23, 2008, the Parent furnishes
an Officer’s Certificate to the Trustee evidencing that the HMRC has declined to furnish the U.K.
Tax Confirmation, then the Trustee shall transfer the funds in the Holdback Account to the
Collection Account on the immediately succeeding Payment Date for inclusion in the Available
Collections Amount for distribution to the Noteholders to pay interest on and principal of the
Class A Notes (without premium or penalty). In no event shall any such payment of principal of the
Class A Notes be made until all interest due on the Class A Notes (including any accrued and unpaid
interest) is paid in full. If prior to the transfer of funds from the Holdback Account in
accordance with the first sentence of this Section 3.12 (a) the Issuer delivers to the Trustee a
copy of the U.K. Tax Confirmation and (b) the Issuer delivers to the Trustee an Officer’s
Certificate to the effect that no Default or Event of Default has occurred and is continuing as of
such date, then within two Business Days of the delivery of such copy of the U.K. Tax Confirmation
and Officer’s Certificate the Trustee shall release all of the funds then in the Holdback Account
to the Parent.

ARTICLE IV

DEFAULT AND REMEDIES

     Section 4.1 Events of Default. Each of the following events or occurrences shall constitute an
“Event of Default” hereunder with respect to any class of Notes (except for clauses (a),
(b), (c) and (d) below in which the potential events or occurrences that would constitute an Event
of Default are specific to certain classes of Notes, in which case such Event of Default shall be
constituted only with respect to such classes of Notes (and not all classes of Notes)), and each
such Event of Default shall be deemed to exist and continue so long as, but only so long as, it
shall not have been waived or remedied, as applicable:

          (a) failure to pay interest on the Class A Notes due on any Payment Date (other than the Final
Legal Maturity Date or any Redemption Date) within five days of such Payment Date, but only to the
extent of the Available Collections Amount available for interest payments and any capital
contributed to the Issuer by the Parent as described in Section 3.1(f);

          (b) (i) failure to pay interest on the Class A Notes due on any Payment Date (other than the
Final Legal Maturity Date, any Redemption Date or as set forth in Section 4.1(a)) in full by the
next succeeding Payment Date, together with Additional Interest on any interest not

37

 

paid on the Payment Date on which it was originally due, and (ii) in the case of any class of
Notes other than the Class A Notes, failure to pay interest on any Notes of such class on the
Payment Date that such interest is due;

          (c) (i) failure to pay principal of the Class A Notes on any Payment Date to the extent that
funds in the Holdback Account are to be transferred to the Collection Account and included in the
Available Collections Amount on such Payment Date as described in Section 3.12 in the amount of
such funds, (ii) failure to pay principal and Premium, if any, and accrued and unpaid interest on
any Notes of such class on the applicable Final Legal Maturity Date or (iii) failure to pay the
Redemption Price when due on any Redemption Date for such class;

          (d) failure to pay any amount (other than principal, Premium, if any, and interest on the
Notes) when due and payable in connection with such class of Notes and the continuance of such
default for a period of 30 or more days after written notice thereof is given to the Issuer by the
Trustee;

          (e) (i) failure by the Issuer to comply in any material respect with any of the covenants set
forth in Section 5.2 (other than Section 5.2(k)), Section 5.3(a), Section 5.3(b) or Section 5.3(c),
and written notice thereof being given to the Issuer by the Trustee at the Direction of Noteholders
of a majority of the Outstanding Principal Balance of the Notes; or (ii) failure by the Issuer to
comply in any material respect with any of the other covenants, obligations, conditions or
provisions binding on it under this Indenture or the Notes (other than a payment default for which
provision is made in Section 4.1(a), Section 4.1(b), Section 4.1(c) or Section 4.1(d)) if (in the
case of this Section 4.1(e)(ii) only) such failure continues for a period of 30 days or more after
written notice thereof has been given to the Issuer by the Trustee at the Direction of Noteholders
of a majority of the Outstanding Principal Balance of the Notes;

          (f) the Issuer becomes subject to a Voluntary Bankruptcy or an Involuntary Bankruptcy;

          (g) any judgment or order for the payment of money in excess of $1,000,000 shall be rendered
against the Issuer and either (i) enforcement proceedings have been commenced by any creditor upon
such judgment or order or (ii) there is any period of ten consecutive days during which a stay of
enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be in
effect;

          (h) the Issuer Organizational Documents cease to be in full force and effect without
replacement documents having the same terms being in full force and effect;

          (i) the Parent shall have failed to perform in any material respect any of its covenants under
Article VI of the Purchase and Sale Agreement or Article VI of the Pledge and Security Agreement;
or

          (j) the GSK License Agreement shall be terminated or shall otherwise fail to be in full force
and effect and such failure continues for a period of 30 days or more.

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     Section 4.2 Acceleration, Rescission and Annulment.

          (a) During the Significant Subsidiary Period, upon the occurrence and continuation of an Event
of Default with respect to the Notes, neither the Trustee nor the Noteholders shall have the right
to accelerate the Outstanding Principal Balance of the Notes. If an Event of Default with respect
to the Notes (other than an Acceleration Default) occurs and is continuing during the
Non-Significant Subsidiary Period, the Trustee may, and, upon the Direction of Noteholders of a
majority of the Outstanding Principal Balance of the Senior Class of Notes, shall, give an
Acceleration Notice to the Issuer. Upon delivery of such an Acceleration Notice (and so long as
such Acceleration Notice has not been annulled pursuant to this Indenture), such Outstanding
Principal Balance and all accrued and unpaid interest thereon shall be immediately due and payable.
At any time after the Trustee or the Noteholders have so declared the Outstanding Principal
Balance of the Notes to be immediately due and payable, and prior to the exercise of any other
remedies pursuant to this Article IV, the Trustee, upon the Direction of Noteholders of a majority
of the Outstanding Principal Balance of the Senior Class of Notes, shall, subject to Section
4.5(a), by written notice to the Issuer, rescind and annul such declaration and thereby annul its
consequences if (i) there has been paid to or deposited with the Trustee an amount sufficient to
pay all overdue installments of interest on the Notes, and the principal of, and Premium, if any,
on the Notes that would have become due otherwise than by such declaration of acceleration, (ii)
the rescission would not conflict with any judgment or decree and (iii) all other Defaults and
Events of Default, other than non-payment of interest on and principal and Premium, if any, of the
Notes that have become due solely because of such declaration of acceleration, have been cured or
waived. If an Acceleration Default occurs during the Non-Significant Subsidiary Period, the
Outstanding Principal Balance of the Notes and all accrued and unpaid interest thereon shall
automatically become immediately due and payable without any further action by any party.

          (b) Notwithstanding this Section 4.2, Section 4.3 and Section 4.12, after the occurrence and
during the continuation of an Event of Default, no Noteholders of any class of Notes other than the
Senior Class of Notes shall be permitted to give or direct the giving of an Acceleration Notice
(and Noteholders of the Senior Class of Notes may do so only during the Non-Significant Subsidiary
Period), or to exercise any remedy in respect of such Event of Default, and no Person other than
the Senior Trustee, at the Direction of a majority of the Outstanding Principal Balance of the
Senior Class of Notes, may give an Acceleration Notice (and the Senior Trustee may do so only
during the Non-Significant Subsidiary Period) or exercise any such remedy.

          (c) Within 30 days after the occurrence of an Event of Default in respect of any class of
Notes, the Trustee shall give to the Noteholders of such class of Notes notice, transmitted by
mail, of all uncured or unwaived Defaults known to it on such date; provided, that the
Trustee may withhold such notice with respect to a Default (other than a payment default with
respect to interest, principal or Premium, if any) if it determines in good faith that withholding
such notice is in the interest of the affected Noteholders.

     Section 4.3 Other Remedies. Subject to the provisions of this Indenture, if, during the
Significant Subsidiary Period, any Event of Default shall have occurred and be continuing, then the
Senior Trustee may, but only at the Direction of Noteholders of a majority of the Outstanding

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Principal
Balance of the Senior Class of Notes, pursue any available remedy by proceeding at law or in
equity to collect the payment of principal of, Premium, if any, or, subject to Section 4.4,
interest on the Notes (but not Outstanding principal of, Premium, if any, or interest on the Notes
that is not otherwise due) or to enforce the performance of any provision of the Notes, this
Indenture, the Servicing Agreement or the Pledge and Security Agreement. Subject to the provisions
of this Indenture, if, during the Non-Significant Subsidiary Period, upon the delivery of an
Acceleration Notice in accordance with Section 4.2 (and so long as such Acceleration Notice has not
been annulled pursuant to Section 4.2(a)) or if any Acceleration Default shall have occurred and be
continuing that results in accrued and unpaid interest on the Notes becoming immediately due and
payable, then the Senior Trustee may, but only at the Direction of Noteholders of a majority of the
Outstanding Principal Balance of the Senior Class of Notes, pursue any available remedy by
proceeding at law or in equity to collect the payment of principal of, Premium, if any, or, subject
to Section 4.4, interest on the Notes or to enforce the performance of any provision of the Notes,
this Indenture, the Servicing Agreement or the Pledge and Security Agreement. In each case, such
enforcement shall include any of the following, to the fullest extent permitted by law, subject to
the receipt of such Direction:

          (a) The Senior Trustee may obtain the appointment of a Receiver of the Indenture Estate as
provided in Section 12.7 and the Issuer consents to and waives any right to notice of such
appointment.

          (b) The Senior Trustee may, without notice to the Issuer and at such time as the Senior
Trustee in its sole discretion may determine, exercise any or all of the Issuer’s rights in, to and
under or in any way connected with or related to any or all of the Indenture Estate, including (i)
demanding and enforcing payment and performance of, and exercising any or all of the Issuer’s
rights and remedies with respect to the collection, enforcement or prosecution of, any or all of
the Indenture Estate (including the Purchased Assets and the Issuer’s rights under the Purchase and
Sale Agreement), in each case by legal proceedings or otherwise, (ii) settling, adjusting,
compromising, extending, renewing, discharging and releasing any or all of, and any legal
proceedings brought to collect or enforce any or all of, the Purchased Assets and otherwise under
the Transaction Documents and (iii) preparing, filing and signing the name of the Issuer on (A) any
proof of claim or similar document to be filed in any bankruptcy or similar proceeding involving
the Indenture Estate (including the Purchased Assets) and (B) any notice of lien, assignment or
satisfaction of lien, or similar document in connection with the Indenture Estate (including the
Purchased Assets).

          (c) The Senior Trustee may, without notice except as specified herein, sell or cause the sale
of all or any part of the Indenture Estate in one or more parcels at public or private sale, at any
of the Senior Trustee’s offices or elsewhere, for cash, on credit or for future delivery, and upon
such other terms as the Senior Trustee may deem commercially reasonable, provided, that, so
long as the GSK License Agreement remains in force, the Senior Trustee shall make any such sale
only to a Person that is a Permitted Holder. The Issuer agrees that, to the extent notice of sale
shall be required by law, at least ten days’ notice to the Issuer of the time and place of any
public sale or the time after which any private sale is to be made shall constitute reasonable
notification. The Senior Trustee shall not be obligated to make any sale of all or any part of the
Indenture Estate regardless of notice of sale having been given. The Senior Trustee may adjourn
any public or private sale from time to time by announcement at the time and place fixed

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therefor, and such sale may, without further notice, be made at the time and place to which it
was so adjourned.

          (d) The Senior Trustee may, instead of exercising the power of sale conferred upon it by
Section 4.3(c) and Applicable Law, proceed by a suit or suits at law or in equity to foreclose the
Security Interest and sell all or any portion of the Indenture Estate under a judgment or a decree
of a court or courts of competent jurisdiction, provided, that, so long as the GSK License
Agreement remains in force, the Senior Trustee shall make any such foreclosure sale only to a
Person that is a Permitted Holder.

          (e) The Senior Trustee may require the Issuer to, and the Issuer hereby agrees that it shall
at its expense and upon request of the Senior Trustee, forthwith assemble all or part of the
Indenture Estate as directed by the Senior Trustee and make it available to the Senior Trustee at a
place to be designated by the Senior Trustee that is reasonably convenient to both parties.

          (f) In addition to the rights and remedies provided for in this Indenture, the Senior Trustee
may exercise in respect of the Indenture Estate all the rights and remedies of a secured party upon
default under the UCC (whether or not the UCC applies to the affected property included in the
Indenture Estate) and under all other Applicable Law; provided, that, so long as the GSK
License Agreement remains in force, the Senior Trustee shall cause any sale of the Collateral to be
made only to a Person that is a Permitted Holder.

          (g) The Senior Trustee may maintain a proceeding even if it does not possess any of the Notes
or does not produce any of them in the proceeding.

     Section 4.4 Limitation on Suits. Without limiting the provisions of Section 4.9 and the final
sentence of Section 12.4, no Noteholder shall have any right to institute any proceeding, judicial
or otherwise, with respect to this Indenture, the Pledge and Security Agreement or the Notes, for
the appointment of a receiver or trustee or for any other remedy hereunder, unless:

          (a) such Noteholder is a holder of the Senior Class of Notes and has previously given written
notice to the Senior Trustee of a continuing Event of Default;

          (b) the Noteholders of a majority of the Outstanding Principal Balance of the Senior Class of
Notes make a written request to the Senior Trustee to pursue a remedy hereunder;

          (c) such Noteholder or Noteholders offer to the Senior Trustee an indemnity reasonably
satisfactory to the Senior Trustee against any costs, expenses and liabilities to be incurred in
complying with such request;

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

          (e) during such 60-day period, Noteholders of a majority of the Outstanding Principal Balance
of the Senior Class of Notes do not give the Senior Trustee a Direction inconsistent with such
request.

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     During the Significant Subsidiary Period, no proceeding, judicial or otherwise, may be brought
to final judgment by one or more Noteholders or the Trustee, individually or in the aggregate, for
the payment of any amount of damages awarded in such judgment (including any post-judgment interest
payable thereon) in excess of $10,000,000; provided, that this limitation shall not apply
to any claims against the Parent pursuant to the Purchase and Sale Agreement; provided,
further, that there is no limitation on the number of proceedings that may be brought in
respect of separate Events of Default except that the amount of damages that may be awarded in all
such proceedings during the Significant Subsidiary Period may not exceed $10,000,000;
provided, further, that if Section 6.01(g) of the Convertible Notes Indenture is
modified such that the dollar threshold therein is changed, then the $10,000,000 figure set forth
above shall likewise be deemed to be changed to such changed dollar threshold. For the avoidance
of doubt, none of the restrictions described in this paragraph shall affect the rights of the
Noteholders or the Trustee to foreclose on the Collateral as provided herein.

     No one or more Noteholders may use this Indenture to affect, disturb or prejudice the rights
of another Noteholder or to obtain or seek to obtain any preference or priority not otherwise
created by this Indenture and the terms of the Notes over any other Noteholder or to enforce any
right under this Indenture, except in the manner herein provided.

     Section 4.5 Waiver of Existing Defaults.

          (a) The Senior Trustee or the Noteholders of a majority of the Outstanding Principal Balance
of the Senior Class of Notes by written notice to the Senior Trustee may waive any existing Default
(or Event of Default) hereunder and its consequences, except a Default (or Event of Default) (i) in
the payment of the interest on, principal of, and Premium, if any, on any Note or (ii) in respect
of a covenant or provision hereof which under Article IX cannot be modified or amended without the
consent of the Noteholder of each Note affected thereby. Upon any such waiver, such Default shall
cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured for
every purpose of this Indenture, but no such waiver shall extend to any subsequent or other Default
(or Event of Default) or impair any right consequent thereon.

          (b) Any written waiver of a Default or an Event of Default given by Noteholders to the Senior
Trustee and the Issuer in accordance with the terms of this Indenture shall be binding upon the
Senior Trustee and the other parties hereto. Unless such writing expressly provides to the
contrary, any waiver so granted shall extend only to the specific event or occurrence which gave
rise to the Default or Event of Default so waived and not to any other similar event or occurrence
which occurs subsequent to the date of such waiver.

     Section 4.6 Restoration of Rights and Remedies. If the Senior Trustee or any Noteholder of the
Senior Class of Notes has instituted any proceeding to enforce any right or remedy under this
Indenture, and such proceeding has been discontinued or abandoned for any reason or has been
determined adversely to the Senior Trustee or such Noteholder, then in every such case the Issuer,
the Senior Trustee and the Noteholders shall, subject to any determination in such proceeding, be
restored severally and respectively to their former positions hereunder, and thereafter all rights
and remedies of the Senior Trustee and the Noteholders shall continue as though no such proceeding
has been instituted.

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     Section 4.7 Remedies Cumulative. Each and every right, power and remedy herein given to the
Trustee specifically or otherwise in this Indenture shall be cumulative and shall, to the extent
permitted by law, be in addition to every other right, power and remedy herein specifically given
or now or hereafter existing at law, in equity or by statute, and each and every right, power and
remedy whether specifically herein given or otherwise existing may be exercised from time to time
and as often and in such order as may be deemed expedient by the Trustee, and the exercise or the
beginning of the exercise of any power or remedy shall not be construed to be a waiver of the right
to exercise at the same time or thereafter any other right, power or remedy. No delay or omission
by the Trustee in the exercise of any right, remedy or power or in the pursuance of any remedy
shall impair any such right, power or remedy or be construed to be a waiver of any Default on the
part of the Issuer or to be an acquiescence.

     Section 4.8 Authority of Courts Not Required. The parties hereto agree that, to the greatest
extent permitted by law, the Trustee shall not be obliged or required to seek or obtain the
authority of, or any judgment or order of, the courts of any jurisdiction in order to exercise any
of its rights, powers and remedies under this Indenture, and the parties hereby waive any such
requirement to the greatest extent permitted by law.

     Section 4.9 Rights of Noteholders to Receive Payment. Notwithstanding any other provision of this
Indenture, the right of any Noteholder to receive payment of interest on, principal of, or Premium,
if any, on any Note on or after the respective due dates therefor expressed in such Note, or to
bring suit for the enforcement of any such payment on or after such respective dates, shall not be
impaired or affected without the consent of such Noteholder.

     Section 4.10 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 and
of any Noteholder allowed in any judicial proceedings relating to any obligor on the Notes, its
creditors or its property.

     Section 4.11 Undertaking for Costs. All parties to this Indenture agree, and each Noteholder by
its acceptance hereof shall be deemed to have agreed, that, 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
such suit of an undertaking to pay the costs of such suit, and the court in its discretion may
assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such
suit, having due regard to the merits and good faith of the claims or defense made by the party
litigant. This Section 4.11 does not apply to a suit instituted by the Trustee, a suit instituted
by any Noteholder for the enforcement of the payment of interest, principal, or Premium, if any, on
any Note on or after the respective due dates expressed in such Note or a suit by a Noteholder or
Noteholders of at least 10% of the Outstanding Principal Balance of the Notes.

     Section 4.12 Control by Noteholders. Subject to Section 4.2 and Section 4.4 and to the rights of
the Trustee hereunder, Noteholders of a majority of the Outstanding Principal Balance of the Notes
shall have the right to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee or exercising any trust, right or power conferred on the Trustee
under any Transaction Document; provided, that:

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          (a) such Direction shall not be in conflict with any rule of law or with this Indenture and
would not involve the Trustee in personal liability or expense;

          (b) the Trustee shall not determine that the action so directed would be unjustly prejudicial
to the Noteholders of such class not taking part in such Direction; and

          (c) the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such Direction.

     Section 4.13 Senior Trustee. The Trustee irrevocably agrees (and the Noteholders (other than the
Noteholders represented by the Senior Trustee) shall be deemed to agree by virtue of their purchase
of the Notes) that the Senior Trustee shall have all of the rights granted to it under this
Indenture, including the right to direct the Trustee to take certain action as provided for in this
Indenture, and the Trustee hereby agrees to act in accordance with each such authorized direction
of the Senior Trustee.

     Section 4.14 Application of Proceeds. All cash proceeds received by the Senior Trustee in respect
of any sale of, collection from or other realization upon all or any part of the Indenture Estate
shall be deposited in the Collection Account and distributed as provided in Article III. Any
surplus of such cash proceeds held and remaining after payment in full of all Secured Obligations
shall be paid over to the Issuer or whomsoever may be lawfully entitled to receive such surplus as
provided in Section 3.7. Any amount received for any sale or sales conducted in accordance with
the terms of Section 4.3 shall to the extent permitted by Applicable Law be deemed conclusive and
binding on the Issuer and the Noteholders.

     Section 4.15 Waivers of Rights Inhibiting Enforcement. The Issuer waives (a) any claim that, as to
any part of the Indenture Estate, a private or public sale, should the Senior Trustee elect so to
proceed, is, in and of itself, not a commercially reasonable method of sale for such part of the
Indenture Estate, (b) the right to assert in any action or proceeding between it and the Senior
Trustee offsets or counterclaims that it may have, (c) except as otherwise provided in any of the
Transaction Documents, TO THE EXTENT PERMITTED BY APPLICABLE LAW, NOTICE OR JUDICIAL HEARING IN
CONNECTION WITH THE TRUSTEE’S TAKING POSSESSION OR DISPOSITION OF ANY OF THE INDENTURE ESTATE,
INCLUDING ANY AND ALL PRIOR NOTICE AND HEARING FOR ANY PREJUDGMENT REMEDY OR REMEDIES AND ANY SUCH
RIGHT THAT THE ISSUER WOULD OTHERWISE HAVE UNDER THE CONSTITUTION OR ANY STATUTE OF THE U.S. OR OF
ANY STATE, AND ALL OTHER REQUIREMENTS AS TO THE TIME, PLACE AND TERMS OF SALE OR OTHER REQUIREMENTS
WITH RESPECT TO THE ENFORCEMENT OF THE TRUSTEE’S RIGHTS HEREUNDER, (d) all rights of redemption,
appraisement, valuation, stay and extension or moratorium and (e) except as otherwise provided in
any of the Transaction Documents, all other rights the exercise of which would, directly or
indirectly, prevent, delay or inhibit the enforcement of any of the rights or remedies under this
Indenture or the absolute sale of the Indenture Estate, now or hereafter in force under any
Applicable Law, and the Issuer, for itself and all who may claim under it, insofar as it or they
now or hereafter lawfully may, hereby waives the benefit of all such laws and rights.

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     Section 4.16 Security Interest Absolute. All rights of the Trustee and security interests
hereunder, and all obligations of the Issuer hereunder, shall be absolute and unconditional
irrespective of, and the Issuer hereby irrevocably waives any defenses it may now have or may
hereafter acquire in any way relating to, any or all of the following:

          (a) any lack of validity or enforceability of any of the Transaction Documents or any other
agreement or instrument relating thereto (other than against the Trustee);

          (b) any change in the time, manner or place of payment of, or in any other term of, all or any
of the Secured Obligations, or any other amendment or waiver of or any consent to any departure
from the Transaction Documents or any other agreement or instrument relating thereto;

          (c) any taking, exchange, surrender, release or non-perfection of any Collateral or any other
collateral, or any release or amendment or waiver of or consent to any departure from any guaranty,
for all or any of the Secured Obligations;

          (d) any manner of application of any Collateral or any other collateral, or proceeds thereof,
to all or any of the Secured Obligations, or any manner of sale or other disposition of any
Collateral or any other collateral for all or any of the Secured Obligations or any other
obligations of the Issuer under or in respect of the Transaction Documents or any other assets of
the Issuer;

          (e) any change, restructuring or termination of the limited liability company structure or
existence of the Issuer;

          (f) the failure of any other Person to execute this Indenture or any other agreement or the
release or reduction of liability of the Issuer or other grantor or surety with respect to the
Secured Obligations; or

          (g) any other circumstance (including any statute of limitations) or any existence of or
reliance on any representation by the Trustee that might otherwise constitute a defense available
to, or a discharge of, the Issuer.

ARTICLE V

REPRESENTATIONS, WARRANTIES AND COVENANTS

     Section 5.1 Representations and Warranties. The Issuer represents and warrants to the Trustee as
follows:

          (a) The Issuer is a limited liability company created under the laws of the State of Delaware,
is duly qualified to do business and is in good standing in each jurisdiction where such
qualification is required and has full power and authority to conduct its business, and the Issuer
is not in liquidation or bankruptcy and has not become subject to a Voluntary Bankruptcy or an
Involuntary Bankruptcy.

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          (b) The Issuer has not engaged in any activities since its organization (other than those
incidental to its organization and permitted by the Issuer Organizational Documents, the execution
and performance of the Transaction Documents to which it is a party and the activities referred to
in or contemplated by such agreements), and the Issuer has not paid any dividends or made any
similar distributions since its organization.

          (c) The creation of the Notes and the issuance, execution and delivery, and the compliance by
the Issuer with the terms, of the Notes and each of the other Transaction Documents to which it is
a party:

               (i) do not at the Closing Date conflict with, result in a breach of any of the terms or
provisions of or constitute a default under the Issuer Organizational Documents or with any
judgment, order or decree of any Governmental Authority having jurisdiction over the Issuer
or, except where it would not have or would not be reasonably likely to have a Material
Adverse Effect, with any Applicable Law; and

               (ii) do not at the Closing Date violate, or constitute a default under, any deed,
indenture (including the Convertible Notes Indenture), agreement or other instrument or
obligation to which the Issuer is a party or by which it or any part of its assets, property
or revenues are bound.

          (d) The creation, execution and issuance of the Notes, the execution and delivery by the
Issuer of the Transaction Documents executed by it and the performance by the Issuer of its
obligations hereunder and thereunder and the arrangements contemplated hereby and thereby to be
performed by it have been duly authorized, executed and delivered by the Issuer.

          (e) This Indenture constitutes, and the other Transaction Documents to which it is a party,
when executed and delivered and, in the case of the Notes, when issued and authenticated, will
constitute, valid, legally binding and (subject to general equitable principles, and laws relating
to insolvency, liquidation, reorganization and other laws of general application relating to
creditors’ rights or claims or to laws of prescription or the concepts of materiality,
reasonableness, good faith and fair dealing) enforceable obligations of the Issuer.

          (f) On the Closing Date, there exists no Event of Default nor any event which, had the Notes
already been issued, would constitute a Default or an Event of Default.

          (g) On the Closing Date, subject to the Liens created in favor of the Trustee and except for
any other Permitted Liens, there exists no Lien over the assets of the Issuer.

          (h) All consents, approvals, authorizations or other orders of all Governmental Authorities
required (excluding any required by the other parties to the Transaction Documents) for or in
connection with the execution, delivery and performance of the Transaction Documents by the Issuer
and the issuance and performance of the Notes and the offering of the Notes by the Issuer have been
obtained and are in full force and effect and are not contingent upon fulfillment of any condition.
No consent of any Governmental Authority or any other party (including directors, officers,
members, managers or creditors of the Issuer) is required which has not been obtained for the
pledge by the Issuer of the Collateral pursuant to this Indenture. The Issuer is

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not required to register as an “investment company” within the meaning of the Investment
Company Act of 1940, as amended.

          (i) There is no action, suit, investigation or proceeding pending or, to the knowledge of the
Issuer, threatened against the Issuer before any Governmental Authority which in any manner
challenges or seeks to prevent, enjoin, alter or materially delay the transactions contemplated by
this Indenture and the other Transaction Documents to which the Issuer is a party.

          (j) The Issuer has no Subsidiaries.

          (k) The Issuer is the sole legal and beneficial owner of the Purchased Assets and the other
assets and properties constituting the Collateral, free and clear of any Liens other than Permitted
Liens.

          (l) Under the laws of the State of Delaware, the laws of the State of New York and U.S.
federal law in force at the Closing Date, it is not necessary that this Indenture or any other
Transaction Document (other than evidences and perfection of the Liens) be filed, recorded or
enrolled by the Issuer with any court or other Governmental Authority in any such jurisdictions or
that any stamp, registration or similar Tax be paid by the Issuer on or in relation to this
Indenture or any of the other Transaction Documents (other than filings of Uniform Commercial Code
financing statements set forth in Exhibit E and the various consents and agreements, if
any, pursuant hereto).

          (m) The filings of financing statements under the UCC and other recordings, if any, in the
appropriate offices therefor and any other actions required to perfect a security interest in favor
of the Trustee in the Collateral, including the Purchased Assets sold, transferred, conveyed,
assigned, contributed and granted on the Closing Date pursuant to the Purchase and Sale Agreement,
have been or shall have been duly made by the Closing Date, and, subject to the terms and
provisions of this Indenture, the Issuer has or shall have the same rights as the Parent has or
would have with respect to the Purchased Assets (if the Parent were still the owner of such
Purchased Assets) against GSK and Mitsubishi. No other security agreement, financing statement or
other public notice with respect to all or any part of the Collateral (other than any of the
foregoing that is referenced in Exhibit B to the Purchase and Sale Agreement or Exhibit
E to this Indenture or otherwise names the Trustee as secured party) is on file or of record in
any public office that perfects a valid security interest therein. This Indenture creates a valid
security interest in the Collateral securing the payment of the Secured Obligations.

          (n) The Issuer has determined, and by virtue of its entering into the transactions
contemplated hereby and its authorization, execution and delivery of this Indenture and the other
Transaction Documents to which it is party, the issuance of the Notes and the consummation of the
transactions contemplated hereby and thereby, that its incurrence of Indebtedness and other
liability hereunder or thereunder or contemplated hereby or thereby (i) is in its own best
interests, (ii) does not leave it unable to pay its debts as they become due in the ordinary course
of business, (iii) will not leave it with debts which cannot be paid from the present saleable
value of its property and (iv) will not render it insolvent within the meaning of Section 101(32)
of the

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United States Bankruptcy Code or Section 271 of the New York Debtor and Creditor Law or leave
it with unreasonably small capital.

          (o) No material adverse change in the business, condition (financial or otherwise),
performance or properties of the Issuer has occurred since its date of formation.

          (p) The Issuer has never filed any tax return or report under any name other than its exact
legal name.

          (q) No step has been taken or is intended by the Issuer or, so far as it is aware, any other
Person for the winding-up, liquidation, dissolution, administration, merger or consolidation or for
the appointment of a receiver or administrator of the Issuer or all or any of its assets.

          (r) The Issuer has not assigned or pledged any of its right, title or interest in the
Collateral to anyone other than the Trustee.

          (s) The Issuer (i) is not a resident of the United Kingdom, (ii) is an investment rather than
a trading company, (iii) has no permanent establishment in the United Kingdom and (iv) does not
have a place of business in the United Kingdom.

          (t) As of the date hereof, the Issuer is a Significant Subsidiary.

          (u) The representations and warranties made by the Issuer in any of the other Transaction
Documents to which it is a party are true and accurate as of the date made.

     Section 5.2 Covenants. The Issuer covenants with the Trustee that, so long as any Notes are
Outstanding, it will perform and comply with each of the following covenants and not engage in any
activity prohibited by this Indenture without the prior written consent of the Trustee pursuant to
Section 9.1 or Section 9.2, as applicable, authorizing the Issuer not to perform any such covenants
or to engage in any such activity prohibited by this Indenture, in each case on such terms and
conditions, if any, as shall be specified in such prior written consent:

          (a) Except as expressly permitted by any Transaction Document or Principal Document, the
Issuer shall not take any action, whether orally or in writing, which would amend, waive, modify,
supplement, restate, cancel or terminate, or discharge or prejudice the validity or effectiveness
of, this Indenture, the Notes, the Pledge and Security Agreement, the Purchase and Sale Agreement,
the Servicing Agreement or any Hedge Agreement, or permit any party to any such document to be
released from such obligations.

          (b) The Issuer shall not, directly or indirectly, (i) declare or pay any dividend or make any
distribution on its Capital Securities, whether in cash, property, securities or a combination
thereof, to the Parent or any other owner of a beneficial interest in the Issuer or otherwise with
respect to any ownership of its Capital Securities, except that the Issuer may distribute to the
Parent (x) all or any portion of any amounts transferred to the Issuer pursuant to Section
3.7(a)(viii), (y) the amounts contemplated by Section 3.12 or (z) any proceeds from an
issuance of Notes in accordance with this Indenture, (ii) purchase, redeem, retire or otherwise

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acquire for value any issued Capital Securities of the Issuer or any of its Affiliates,
(iii) make any payment of principal, interest or Premium, if any, on the Notes or make any
voluntary or optional redemption, repurchase, defeasance or other acquisition or retirement for
value of, or make any deposit (including the payment of amounts into a sinking fund or other
similar fund) with respect to, Indebtedness of the Issuer other than in accordance with the Notes
and this Indenture or (iv) make any loan or advance to a Person, any purchase or other acquisition
of any beneficial interest, Capital Securities, warrants, rights, options, obligations or other
securities of such Person, any capital contribution to such Person or any other investment in such
Person (other than Eligible Investments and investments permitted under Section 5.2(f) or otherwise
in accordance with the Notes and this Indenture).

          (c) The Issuer shall not (and shall not consent to the Parent taking any action that would)
incur or suffer to exist any Lien over or with respect to any of the Issuer’s assets, other than
(i) any Permitted Lien or (ii) any security interest created or required to be created hereunder,
including in connection with the issuance of any Class B Notes and any Refinancing Notes.

          (d) The Issuer shall not incur, create, issue, assume, Guarantee or otherwise become liable
for or with respect to, or become responsible for, the payment or performance of, contingently or
otherwise, whether present or future (in any such case, to “Incur”), Indebtedness;
provided, however, that the Issuer may Incur Indebtedness in respect of the
Original Class A Notes, any Class B Notes and any Refinancing Notes issued in accordance with this
Indenture.

          (e) The Issuer shall not liquidate or dissolve, consolidate with, merge with or into, or sell,
convey, transfer, lease or otherwise dispose of the Purchased Assets or all or any material portion
of its other property and assets to, or purchase or otherwise acquire all or substantially all of
the assets of, any other Person, or permit any other Person to merge with or into, or consolidate
or otherwise combine with, the Issuer.

          (f) The Issuer shall not, directly or indirectly, issue, deliver or sell, or consent to issue,
deliver or sell, any actual, contingent, future or executory membership interests, limited
liability company interests, beneficial interests or other equity or ownership interests (however
designated, whether voting or non-voting), except for any additional Capital Securities of the
Issuer issued to the Parent, provided that such additional Capital Securities are pledged to the
Trustee pursuant to the Pledge and Security Agreement, and except for any membership interests
issued to the Independent Member pursuant to the Issuer Organizational Documents, and provided
further that the Issuer shall not accept any capital contributions from the Parent after the
Closing Date except for contributions of funds deposited into the Capital Account, which may be
used only as provided in Section 3.1(f), and funds transferred from the Holdback Account into the
Collection Account pursuant to Section 3.12.

          (g) Except as otherwise provided in the Issuer Organizational Documents, the Issuer shall not
engage in any business or activity other than purchasing, holding and pledging the Purchased
Assets, collecting the Royalty Payments, issuing the Notes, entering into any Hedge Agreement and
remaining a party to the Transaction Documents and Principal Documents.

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          (h) The Issuer shall not, directly or indirectly, enter into, renew or extend any transaction
(including the purchase, sale, lease or exchange of property or assets, or the rendering of any
service) with any Affiliate of the Issuer, except for the Transaction Documents and Principal
Documents as in effect on the Closing Date.

          (i) The Issuer shall not take any action to become subject to a Voluntary Bankruptcy or an
Involuntary Bankruptcy, and, so long as the obligations under the Convertible Notes Indenture
remain outstanding, the Noteholders shall not cause or join in any action that would make the
Issuer subject to a Voluntary Bankruptcy or Involuntary Bankruptcy. The Issuer shall provide
promptly the Trustee with written notice of the institution of any proceeding by or against the
Issuer seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding-up,
reorganization, arrangement, adjustment, protection, relief or composition of its debts under any
law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry
of an order for relief or the appointment of a receiver, trustee or other similar official for it
or for any substantial part of its property. The Issuer shall not, without an affirmative written
resolution adopted by all of the Members, take any action to waive, repeal, amend, vary, supplement
or otherwise modify any provision of any of the Issuer Organizational Documents that requires
unanimous written consent of the Members. The Issuer shall comply with, and cause compliance with,
the Issuer Organizational Documents.

          (j) The Issuer shall not take any action to waive, repeal, amend, vary, supplement or
otherwise modify the Issuer Organizational Documents in a manner that would adversely affect (x)
the rights, remedies, privileges or preferences of any Noteholder or (y) the Collateral (including
the Purchased Assets) or the Issuer Pledged Collateral.

          (k) The Issuer shall duly and punctually pay the principal, Premium, if any, and interest on
the Notes in accordance with the terms of this Indenture and the Notes; provided, that the
Issuer shall be in compliance with this covenant with respect to any Payment Date (other than the
Final Legal Maturity Date or any Redemption Date) if any such interest in excess of the portion of
the Available Collections Amount available to pay such interest on the relevant Payment Date is
paid in full not later than the immediately succeeding Payment Date (together with Additional
Interest thereon).

          (l) The Issuer shall not employ any employees other than as required by any provisions of
local law; provided, that the Members, the Manager and Service Providers shall not be
deemed to be employees for purposes of this Section 5.2(l).

          (m) During any period in which the Issuer is not subject to Section 13 or 15(d) of the
Exchange Act, the Issuer shall make available to any Noteholder or Beneficial Holder in connection
with any sale of any or all of its Notes and any prospective purchaser of such Notes from such
Noteholder or Beneficial Holder the information required by Rule 144A(d)(4) under the Securities
Act.

          (n) The Issuer shall not assign, amend, modify, supplement or restate any Principal Document,
breach any of the provisions of any Principal Document, enter into any new agreement in respect of
the Purchased Assets or Argatroban or exercise or waive any right or option, fail to exercise any
right or option or grant any consent in respect of the Purchased Assets

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or Argatroban in any manner that would, in each case, materially adversely affect the Issuer
or the Noteholders or conflict with or cause the termination of this Indenture, any other
Transaction Document or any Principal Document except in accordance with the Notes and this
Indenture.

          (o) The Issuer shall not terminate (or consent to any termination of) any Principal Document
in whole or in part.

          (p) The Issuer shall at all times enforce its rights and remedies under the Purchase and Sale
Agreement, the Servicing Agreement and the Principal Documents in a timely and commercially
reasonable manner; provided, that, following the occurrence and continuation of an Event of
Default, the Issuer shall give notice to the Trustee on behalf of the Noteholders of any
contemplated enforcement of such rights and remedies and will follow any Direction of Noteholders
of a majority of the Outstanding Principal Balance of the Notes.

          (q) Promptly after the issuance of the Class A Notes (but in no event more than 30 days
thereafter), the Issuer shall apply to HMRC for the U.K. Tax Confirmation. The Issuer will also
request that HMRC issue a “direction” to GSK to pay the royalties in respect of sales of Argatroban
in the Territory gross (that is, without any deduction for withholding tax such that relief is
given at source). If the U.K. Tax Confirmation lapses for any reason prior to the payment in full
of the Notes, the Issuer shall apply for a new U.K. Tax Confirmation if then required to prevent
withholding of, and claim repayment of, United Kingdom income tax in respect of the Argatroban
royalties. The Issuer shall take all commercially reasonable actions that may be necessary to
minimize the amount of withholding taxes imposed on the Royalty Payments, including (i) claiming
exemption under the U.K.-U.S. Tax Treaty in respect of the payment of royalties by GSK in respect
of sales of Argatroban under the GSK License Agreement and (ii) claiming repayment of any United
Kingdom withholding tax deducted from payments made by GSK under the GSK License Agreement.

          (r) The Issuer shall maintain its existence separate and distinct from any other Person in all
material respects, including taking the following actions, as appropriate:

          (i) maintaining in full effect its existence, rights and franchises as a Delaware
limited liability company and obtaining and preserving its qualification to do business in
each jurisdiction in which such qualification is or will be necessary to protect the
validity and enforceability of this Indenture and each other instrument or agreement
necessary or appropriate to properly administer this Indenture and permit and effectuate the
transactions contemplated hereby and thereby;

          (ii) maintaining its own deposit accounts, separate from those of the Parent, any of
its directors or officers and their respective Affiliates;

          (iii) conducting no material transactions between the Issuer and any of its Affiliates,
other than entering into and performing the Transaction Documents to which it is party;

          (iv) allocating fairly and reasonably the cost of any shared overhead expenses,
including office space, with the Parent, any of its directors or officers or any of their
respective Affiliates;

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          (v) conducting its affairs separately from those of the Parent, any of its directors or
officers or any of their respective Affiliates and maintaining accurate and separate books,
records and accounts and financial statements, including in connection with the purchase of
the Purchased Assets from the Parent; it being agreed that performance under the Transaction
Documents will not result in the Issuer’s contravening this Section 5.2(r)(v);

          (vi) acting solely in its own name and not that of any other Person, including the
Parent, any of its directors or officers or any of their respective Affiliates, and at all
times using its own stationery, invoices and checks separate from those of the Parent, any
of its directors or officers or any of their respective Affiliates;

          (vii) not holding itself out as having agreed to pay or guarantee, or as otherwise
being liable for, the obligations of the Parent, any of its directors or officers or any of
their respective Affiliates;

          (viii) insuring that any financial reports prepared by the Issuer disclose the effects
of the true sale of the Purchased Assets from the Parent and any of its Affiliates in
compliance with GAAP;

          (ix) maintaining all of its assets in its own name and not commingling its assets with
those of any other Person except as required under the Transaction Documents;

          (x) paying its own operating expenses and other liabilities out of its own funds;

          (xi) observing all formalities required by the Issuer Organizational Documents;

          (xii) maintaining adequate capital for the normal obligations reasonably foreseeable in
light of its contemplated business operations;

          (xiii) not acquiring obligations of the Parent, any of its directors or officers or any
of their respective Affiliates except as required under the Transaction Documents;

          (xiv) holding itself out to the public as a legal entity separate and distinct from any
other Person, including the Parent or any Affiliate of the Parent;

          (xv) correcting any known misunderstanding regarding its separate identity;

          (xvi) not forming, acquiring or holding any subsidiaries; and

          (xvii) not sharing any common logo with or identifying itself as a department or
division of the Parent, any of its directors or officers or any of their respective
Affiliates.

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          (s) The Issuer will not enter into any agreement prohibiting (i) the creation or assumption of
any Lien upon its properties, revenues or assets, whether now owned or hereafter acquired, or (ii)
the ability of the Trustee or any Noteholder to amend or otherwise modify any Transaction Document;
provided, that the foregoing prohibitions shall not apply to restrictions contained in any
Transaction Document.

          (t) The Issuer will not change, amend or alter its exact legal name at any time except
following 30 days’ notice given by the Issuer to the Trustee.

          (u) The Issuer will not assign or pledge, so long as the assignment hereunder shall remain in
effect and has not been terminated pursuant to Section 11.1, any of its right, title or interest in
the Collateral hereby assigned to anyone other than the Trustee.

          (v) The Issuer agrees that, at any time and from time to time, at the Issuer’s expense and
upon the Trustee’s written request, the Issuer will promptly and duly execute and deliver or cause
to be duly executed and delivered any and all such further instruments and documents, and take all
further action, that may be necessary in the reasonable discretion of the Trustee, in order to
perfect the security interest in the Collateral and to carry out the provisions of this Indenture
or to enable the Trustee to exercise and enforce its rights and remedies hereunder with respect to
any Collateral. The Issuer also agrees that, at any time and from time to time, at the Issuer’s
expense, the Issuer will file (or cause to be filed) such UCC continuation statements and such
other instruments or notices as may be necessary, including UCC financing statements or amendments
thereto, that the Trustee may reasonably request in order to perfect and preserve the security
interests and other rights granted or purported to be granted to the Trustee hereby. With respect
to the foregoing and the grant of the security interest hereunder, the Issuer hereby authorizes the
Trustee to file one or more financing or continuation statements, and amendments thereto, relative
to all or any part of the Collateral without the signature of the Issuer where permitted by
Applicable Law. The Issuer agrees that a carbon, photographic or other reproduction of any
financing statement covering the Collateral or any part thereof shall be sufficient as a financing
statement where permitted by Applicable Law. The Issuer hereby authorizes the Trustee to file
financing statements describing as the collateral covered thereby “all of the debtor’s personal
property or assets” or words to that effect, notwithstanding that such wording may be broader in
scope than the Collateral described in this Indenture.

          (w) The Issuer will not take any action that will result in it (i) becoming a resident of the
United Kingdom, (ii) becoming a trading rather than an investment company, (iii) having a permanent
establishment in the United Kingdom or (iv) having a place of business in the United Kingdom.

          (x) The Issuer will maintain in the Borough of Manhattan, The City of New York, an office or
agency of the Trustee, Registrar and Paying Agent where Notes may be presented or surrendered for
payment, where Notes may be surrendered for registration of transfer, exchange or purchase and
where notices and demands to or upon the Issuer in respect of the Notes and this Indenture may be
served. Each of the Corporate Trust Office and each office or agency of the Trustee in the Borough
of Manhattan, The City of New York shall initially be one such office or agency for all of the
aforesaid purposes. The Issuer shall give prompt written notice to the Trustee of the location,
and of any change in the location, of any such office or

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agency (other than a change in the location of the office of the Trustee). If at any time the
Issuer 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 12.5. The Issuer may also from time
to time designate one or more other offices or agencies where the Notes may be presented or
surrendered for any or all such purposes and may from time to time rescind such designations;
provided, however, that no such designation or rescission shall in any manner
relieve the Issuer of its obligation to maintain an office or agency in the Borough of Manhattan,
The City of New York, for such purposes.

     Section 5.3 Reports and Other Deliverables by the Issuer.

          (a) The Issuer shall furnish to the Trustee, within 120 days after the end of each fiscal year
commencing with the fiscal year ending December 31, 2007, a certificate from a Responsible Officer
of the Issuer as to his or her knowledge of the Issuer’s compliance with all of its obligations
under this Indenture (it being understood that, for purposes of this Section 5.3, such compliance
shall be determined without regard to any period of grace or requirement of notice provided under
this Indenture but shall reflect any interest paid on the Original Class A Notes by the next
succeeding Payment Date as contemplated by the proviso to Section 5.2(k) as have been timely paid).

          (b) The Issuer shall deliver written notice to the Trustee of the occurrence of (i) any
Default or Event of Default under this Indenture and (ii) any of the events described in Section
6.3(e) of the Purchase and Sale Agreement promptly and in any event within five Business Days of
the Manager becoming aware of such Default, Event of Default, event or situation.

          (c) The Issuer shall promptly (and in any event within five Business Days of receipt thereof)
provide to the Servicer and the Trustee copies of all materials that the Issuer receives from the
Parent pursuant to Section 6.3 of the Purchase and Sale Agreement or otherwise in respect of the
Principal Documents.

          (d) Within 120 days after the beginning of each fiscal year commencing with the fiscal year
beginning January 1, 2008, the Issuer shall furnish to the Trustee an opinion of its legal counsel,
which opinion shall state whether there are any actions to be taken, including any financing
statements to be filed in any office, within the period of 12 full consecutive calendar months
following the date of such opinion in order to continue the perfection of the security interests
granted under the Transaction Documents or to continue the effectiveness of any financing
statements filed in connection with the Principal Documents as of the date hereof.

ARTICLE VI

THE TRUSTEE

     Section 6.1 Acceptance of Trusts and Duties. Except during the continuance of an Event of
Default, the Trustee undertakes to perform such duties and only such duties as are specifically set
forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against the Trustee;
provided, that, to the extent those duties are qualified, limited

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or otherwise affected by the provisions of any other Transaction Document, the Trustee shall be required to perform those
duties only as so qualified, limited or otherwise affected. The duties and responsibilities of the
Trustee shall be as provided by the Trust Indenture Act (as if the Trust Indenture Act applied to
this Indenture) and as set forth herein. The Trustee accepts the trusts hereby created and
applicable to it and agrees to perform the same but only upon the terms of this Indenture and the
Trust Indenture Act (as if the Trust Indenture Act applied to this Indenture) and agrees to receive
and disburse all moneys received by it in accordance with the terms hereof. The Trustee in its
individual capacity shall not be answerable or accountable under any circumstances except for its
own willful misconduct or negligence or breach of any of its representations or warranties set
forth herein, and the Trustee shall not be liable for any action or inaction of the Issuer or any
other parties to any of the Transaction Documents. Any amounts received by or due to the Trustee
under this Indenture, including the fees, out-of-pocket expenses and indemnities of the Trustee,
shall be Expenses of the Issuer.

     The Issuer does hereby constitute and appoint the Trustee the true and lawful attorney of the
Issuer, irrevocably, granted for good and valuable consideration and coupled with an interest and
with full power of substitution, and with full power (in the name of the Issuer or otherwise), to
ask, require, demand, receive, compound and give acquittance for any and all monies and claims for
monies (in each case including insurance and requisition proceeds) due and to become due under or
arising out of any Transaction Document and all other property which now or hereafter constitutes
part of the Indenture Estate, to endorse any checks or other instruments or orders in connection
therewith and to file any claims or take any action or institute any proceedings which the Trustee
may deem to be necessary or advisable in the premises; provided, that the Trustee shall not
exercise any such rights except upon the occurrence and during the continuance of an Event of
Default hereunder in accordance with Section 4.3.

     Section 6.2 Copies of Documents and Other Notices.

          (a) The Trustee, upon written request, shall furnish to each requesting Noteholder or
Beneficial Holder included on the Approved Holder List and the Servicer, promptly upon receipt
thereof, duplicates or copies of all reports, Notices, requests, demands, certificates, financial
statements and other instruments furnished to the Trustee under or in connection with this
Indenture.

          (b) The Trustee shall furnish to Noteholders and Beneficial Holders included on the Approved
Holder List and the Servicer promptly after receipt thereof any reports or notices received from
any of the Issuer, the Parent, GSK or Mitsubishi, including (i) the report of any audit
contemplated by Section 4.1(b) or 4.1(c) of the Servicing Agreement and (ii) notice of any dispute
between the Parent and any other party to any of the Principal Documents in respect of any
Principal Document as contemplated by Section 6.1(g) of the Purchase and Sale Agreement.

     Section 6.3 Representations and Warranties. The Trustee does not make and shall not be deemed to
have made any representation or warranty as to the validity, legality or enforceability of this
Indenture, the Notes or any other document or instrument or as to the correctness of any statement contained in any thereof,
except that the Trustee in its individual capacity hereby represents and warrants as follows:

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          (a) The Trustee has all requisite right, power and authority to execute and deliver this
Indenture and its related documents and to perform all of its duties as Trustee hereunder and
thereunder.

          (b) The execution and delivery by the Trustee of this Indenture and the other Transaction
Documents to which it is a party, and the performance by the Trustee of its duties hereunder and
thereunder, have been duly authorized by all necessary corporate proceedings, and no further
approvals or filings, including any governmental approvals, are required for the valid execution
and delivery by the Trustee, or the performance by the Trustee, of this Indenture and such other
Transaction Documents to which it is a party.

          (c) The execution, delivery and performance by the Trustee of this Indenture and the other
Transaction Documents to which it is a party (i) to the best of the Trustee’s knowledge and without
independent inquiry or investigation into the facts thereto, do not violate any provision of any
Applicable Law and (ii) do not violate any provision of its corporate charter or by-laws.

          (d) The execution, delivery and performance by the Trustee of this Indenture and the other
Transaction Documents to which it is a party, to the best of the Trustee’s knowledge and without
independent inquiry or investigation into the facts thereto, do not require the authorization,
consent or approval of, the giving of notice to, the filing or registration with, or the taking of
any action in respect of, any Governmental Authority.

          (e) The Trustee has duly executed and delivered this Indenture and each other Transaction
Document to which it is a party, and each of this Indenture and each such other Transaction
Document constitutes the legal, valid and binding obligation of the Trustee in accordance with its
terms, except as (i) such enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium and similar laws relating to or affecting the enforcement of creditors’ rights generally
and (ii) the availability of equitable remedies may be limited by equitable principles of general
applicability.

          (f) The Trustee is not a company ranked in the top 20 pharmaceutical companies in the United
States based on IMS-reported pharmaceutical sales for the calendar year preceding the proposed
issuance of the Original Class A Notes or an Affiliate of such entity.

     Section 6.4 Reliance; Agents; Advice of Counsel. The Trustee shall incur no liability to anyone
acting upon any signature, instrument, notice, resolution, request, consent, order, certificate,
report, opinion, bond or other document or paper believed by it to be genuine and believed by it to
be signed by the proper party or parties. The Trustee may accept a copy of a resolution of, in the
case of the Issuer, the Manager and, in the case of any other party to any Transaction Document,
the governing body of such Person, certified in an accompanying Officer’s Certificate as duly
adopted and in full force and effect, as conclusive evidence that such resolution has been duly
adopted and that the same is in full force and effect. As to any fact or matter the manner of
ascertainment of which is not specifically described herein, the Trustee shall be entitled to receive
and may for all purposes hereof conclusively rely on a certificate, signed by an officer of any duly
authorized Person, as to such fact or matter, and such certificate shall constitute full protection
to the Trustee for any action taken or omitted to be taken by it in

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good faith in reliance thereon. To the extent not otherwise specifically provided herein,
the Trustee shall assume, and shall be fully protected in assuming, that the Issuer is
authorized by its constitutional documents to enter into this Indenture and to
take all action permitted to be taken by it pursuant to the provisions hereof and shall not be
required to inquire into the authorization of the Issuer with respect thereto. To the extent not
otherwise specifically provided herein, the Trustee shall furnish to the Servicer upon written
request such information and copies of such documents as the Trustee may have and as are necessary
for the Servicer to perform its duties under Article II and Article III or otherwise.

     The Trustee shall not be liable for any action it takes or omits to take in good faith that it
believes to be authorized or within its rights or powers or for any action it takes or omits to
take in accordance with the Direction of the Noteholders in accordance with Section 4.12 relating
to the time, method and place of conducting any proceeding for any remedy available to the Trustee,
or exercising any trust, right or power conferred upon the Trustee, under any Transaction Document.

     The Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder
or under any other Transaction Document either directly or by or through agents or attorneys or a
custodian or nominee, and the Trustee shall not be responsible for any misconduct or negligence on
the part of, or for the supervision of, any such agent, attorney, custodian or nominee appointed
with due care by it hereunder.

     The Trustee may consult with counsel as to any matter relating to this Indenture or any other
Transaction Document and any Opinion of Counsel or any advice of such counsel shall be full and
complete authorization and protection in respect of any action taken or suffered or omitted by it
hereunder in good faith and in accordance with such advice or Opinion of Counsel.

     The Trustee shall be under no obligation to exercise any of the rights or powers vested in it
by this Indenture or any other Transaction Document, or to institute, conduct or defend any
litigation hereunder or in relation hereto, at the request, order or Direction of any of the
Noteholders, pursuant to the provisions of this Indenture or any other Transaction Document, unless
such Noteholders shall have offered to the Trustee security or indemnity reasonably satisfactory to
it against the costs, expenses and liabilities which may be incurred therein or thereby.

     The Trustee shall not be required to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties hereunder or under any other
Transaction Document, or in the exercise of any of its rights or powers, if there is reasonable
ground for believing that the repayment of such funds or indemnity satisfactory to it against such
risk or liability is not reasonably assured to it, and none of the provisions contained in this
Indenture or any other Transaction Document shall in any event require the Trustee to perform, or
be responsible or liable for the manner of performance of, any obligations of the Issuer or the
Servicer under this Indenture or any of the other Transaction Documents.

     The Trustee shall not be liable for any Losses or Taxes (except for Taxes relating to any
compensation, fees or commissions of any entity acting in its capacity as Trustee hereunder) or

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in connection with the selection of Eligible Investments or for any investment losses resulting from
Eligible Investments.

     When the Trustee incurs expenses or renders services in connection with an Acceleration
Default, such expenses (including the fees and expenses of its counsel) and the compensation for
such services are intended to constitute expenses of administration under any bankruptcy law or law
relating to creditors’ rights generally.

     The Trustee shall not be charged with knowledge of an Event of Default unless a Responsible
Officer of the Trustee obtains actual knowledge of such event or has received written notice of
such event at its Corporate Trust Office from the Issuer, the Servicer or Noteholders of not less
than 10% of the Outstanding Principal Balance of the Notes. For the avoidance of doubt, the
Trustee shall not be under any obligation with respect to a Liquidated Damages Event unless it
receives written notice of the occurrence of such Liquidated Damages Event at its Corporate Trust
Office (whether pursuant to Section 6.3(e)(iii) of the Purchase and Sale Agreement or otherwise).

     The Trustee shall have no duty to monitor the performance of the Issuer, the Servicer or any
other party to the Transaction Documents, nor shall it have any liability in connection with the
malfeasance or nonfeasance by such parties.

     Whenever in the administration of the provisions of this Indenture the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to taking or suffering any
action to be taken hereunder or under any other Transaction Document, such matter (unless other
evidence in respect thereof be herein specifically prescribed) may, in the absence of gross
negligence or bad faith on the part of the Trustee, be deemed to be conclusively proved and
established by a certificate signed by a Responsible Officer of the Issuer and delivered to the
Trustee, and such certificate, in the absence of gross negligence or bad faith on the part of the
Trustee, shall be full warrant to the Trustee for any action taken, suffered or omitted by it under
the provisions of this Indenture or any other Transaction Document upon the faith thereof.

     Except as provided expressly hereunder, the Trustee shall have no obligation to invest and
reinvest any cash held in the Accounts in the absence of timely and specific written investment
direction by or on behalf of the Issuer. In no event shall the Trustee be liable for the selection
of investments or for investment losses incurred thereon. The Trustee shall have no liability in
respect of losses incurred as a result of the liquidation of any investment prior to its stated
maturity or the failure of the Issuer to provide timely written investment direction.

     When the Trustee incurs expenses after the occurrence of a Default specified in Section 4.1
with respect to the Issuer, if the surviving entity has failed to honor such obligation, the
expenses are intended to constitute expenses of administration under any insolvency law or under
Title 11 of the United States Code.

     Section 6.5 Not Acting in Individual Capacity. The Trustee acts hereunder solely as trustee
unless otherwise expressly provided, and all Persons, other than the Noteholders to the extent
expressly provided in this Indenture, having any claim against the Trustee by reason of the
transactions contemplated hereby shall look, subject to the lien and priorities of payment as

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provided herein or in any other Transaction Document, only to the property of the Issuer for
payment or satisfaction thereof.

     Section 6.6 Compensation of Trustee. The Trustee agrees that it shall have no right against the
Noteholders or, except as provided in Section 3.7(a), the property of the Issuer, for any fee as
compensation for its services hereunder. The Issuer shall pay to the Trustee from time to time
such compensation as is agreed between the two parties. The compensation shall be paid to the
Trustee as provided in Section 3.5(a) and Section 3.7(a).

     Section 6.7 Notice of Defaults. As promptly as practicable after, and in any event within 30 days
after, the occurrence of any Default hereunder, the Trustee shall transmit by mail to the Issuer
and the Noteholders of the related class, in accordance with Section 313(c) of the Trust Indenture
Act (as if the Trust Indenture Act applied to this Indenture), notice of such Default hereunder
actually known to a Responsible Officer of the Trustee, unless such Default shall have been cured
or waived; provided, however, that, except in the case of a Default on the payment
of the interest, principal or Premium, if any, on any Note, the Trustee shall be fully protected in
withholding such notice if and so long as a trust committee of Responsible Officers of the Trustee
in good faith determines that the withholding of such notice is in the interests of the Noteholders
of the related class.

     Section 6.8 May Hold Notes. The Trustee, any Paying Agent, the Registrar or any of their
Affiliates or any other agent in their respective individual or any other capacity may become the
owner or pledgee of the Notes and, subject to Sections 310(b) and 311 of the Trust Indenture Act
(as if the Trust Indenture Act applied to this Indenture), may otherwise deal with the Issuer with
the same rights it would have if it were not the Trustee, Paying Agent, Registrar or such other
agent.

     Section 6.9 Corporate Trustee Required; Eligibility. There shall at all times be a Trustee which
shall be eligible to act as a trustee under Section 310(a) of the Trust Indenture Act (as if the
Trust Indenture Act applied to this Indenture) and shall meet the Eligibility Requirements. If
such corporation publishes reports of conditions at least annually, pursuant to law or to the
requirements of any federal, state, foreign, territorial or District of Columbia supervising or
examining authority, then, for the purposes of this Section 6.9, the combined capital and surplus
of such corporation shall be deemed to be its combined capital and surplus as set forth in its most
recent report of conditions so published.

     In case at any time the Trustee shall cease to be eligible in accordance with the provisions
of this Section 6.9 to act as Trustee, the Trustee shall resign immediately as Trustee in the
manner and with the effect specified in Section 7.1.

     Section 6.10 Reports by the Trustee. Within 60 days after May 15 of each year commencing with the
first full calendar year following the issuance of any class of Notes, the Trustee shall, if
required by Section 313(a) of the Trust Indenture Act (as if the Trust Indenture Act applied to
this Indenture), transmit to the Noteholders of each class, as provided in Section 313(c) of the
Trust Indenture Act (as if the Trust Indenture Act applied to this Indenture), a brief report
describing, among other things, any changes in eligibility and qualifications of the Trustee and
any issuance of Class B Notes.

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     Section 6.11 Calculation Agent. The Trustee shall act as the Calculation Agent hereunder.
Subject to the approval of the Issuer and Noteholders of a majority of the Outstanding Principal
Balance of the Notes, another Person may become the Calculation Agent on such terms as shall be
approved by them. To the extent not otherwise specifically provided herein, the Trustee shall
furnish to the Calculation Agent, and the Calculation Agent shall furnish to the Trustee, upon
written request such information and copies of such documents as the Trustee or the Calculation
Agent may have and as are necessary for the Calculation Agent and the Trustee to perform their
respective duties under Article III or otherwise.

     Section 6.12 Pledge and Security Agreement and Other Transaction Documents. The Trustee shall
enter into the Pledge and Security Agreement with the Parent on the Closing Date and shall hold the
collateral pledged thereunder as part of the Collateral and the Indenture Estate for purposes of
this Indenture. The provisions of this Article VI shall apply to the Trustee’s exercise of rights
and remedies under the Pledge and Security Agreement, mutatis mutandis. In addition, the Trustee
shall enter into such other Transaction Documents on the Closing Date to which it is party.

     Section 6.13 Custody of the Collateral. The Trustee shall hold such of the Indenture Estate as
consists of instruments, deposit accounts, negotiable documents, money, goods, letters of credit
and advices of credit in the State of New York. The Trustee shall hold such of the Indenture
Estate as constitutes investment property through a securities intermediary, which securities
intermediary shall agree with the Trustee that (a) such investment property shall at all times be
credited to a securities account of the Trustee, (b) such securities intermediary shall treat the
Trustee as entitled to exercise the rights that comprise each financial asset credited to such
securities account, (c) all property credited to such securities account shall be treated as a
financial asset, (d) such securities intermediary shall comply with entitlement orders originated
by the Trustee without the further consent of any other Person, (e) such securities intermediary
will not agree with any Person other than the Trustee to comply with entitlement orders originated
by such other Person, (f) such securities account and the property credited thereto shall not be
subject to any lien, security interest or right of set-off in favor of such securities intermediary
or anyone claiming through it (other than the Trustee) and (g) such agreement shall be governed by
the laws of the State of New York. Except as permitted by this Section 6.13 or as otherwise
permitted by any Transaction Document, the Trustee shall not hold any part of the Indenture Estate
through an agent or a nominee.

     Section 6.14 Preservation and Disclosure of Noteholder Lists. The Registrar shall preserve, in as
current a form as is reasonably practicable, all information as to the names and addresses of the
Noteholders received by it, including the Approved Holder List. At any time when a default or an
Event of Default has occurred and is continuing, in case either (a) three or more Noteholders that
have executed and delivered to the Registrar a Confidentiality Agreement or (b) one or more
Noteholders of at least 25% of the Outstanding Principal Balance of the Senior Class of Notes that
have executed and delivered to the Registrar a Confidentiality Agreement (in each case,
“Applicants”) apply in writing to the Registrar and furnish to the Registrar reasonable
proof that each such Applicant has owned a Note for a period of at least three months preceding the
date of such application, and such application states that the Applicants desire to communicate
with other Noteholders with respect to their rights under this Indenture or under the Notes and
such application is accompanied by a copy of the form of proxy

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or other communication which such
Applicants propose to transmit, then the Registrar shall, within five Business Days after the
receipt of such application, inform such Applicants as to the approximate number of Noteholders
whose names and addresses appear in such information and as to the approximate cost of mailing to
such Noteholders the form of proxy or other communication, if any, specified in such application.
The Registrar shall, upon the written request of such Applicants, mail to each Noteholder whose
name and address appears in such information a copy of the form of proxy or other communication
which is specified in such request, with reasonable promptness after a tender to the Registrar of
the material to be mailed and of payment, or provision for the payment, of the reasonable expenses
of mailing. Each and every Noteholder, by receiving and holding the same, agrees with the Issuer
and the Registrar that neither the Registrar nor any agent of the Issuer or the Registrar shall be
held accountable by reason of mailing any material pursuant to a request made under this Section
6.14.

     Section 6.15 Audit Rights. At the Direction of Noteholders of at least 25% of the Outstanding
Principal Balance of the Senior Class of Notes, the Senior Trustee shall instruct the Servicer on
behalf of the Issuer to direct the Parent to exercise its rights (if currently exercisable)
pursuant to Section 11.01 of the GSK License Agreement to have the records of GSK audited by a
certified public accountant or other Person permitted by the GSK License Agreement.

     Section 6.16 Compliance with Applicable Anti-Terrorism and Anti-Money Laundering Regulations. In
order to comply with Applicable Laws in effect from time to time applicable to banking
institutions, including those relating to the funding of terrorist activities and money laundering,
the Trustee is required to obtain, verify and record certain information relating to Persons that
maintain a business relationship with the Trustee. Accordingly, the Issuer agrees to provide to
the Trustee upon its request from time to time such identifying information and documentation as
may be available for the Issuer in order to enable the Trustee to comply with such Applicable Laws.

     Section 6.17 Jurisdiction of Trustee. Each of the Issuer and the Trustee agrees that the State of
New York shall be the Trustee’s jurisdiction for purposes of Sections 8-110, 9-304 and 9-305 of the
UCC.

ARTICLE VII

SUCCESSOR TRUSTEES

     Section 7.1 Resignation and Removal of Trustee. The Trustee may resign as to all or any of the
classes of Notes at any time without cause by giving at least 30 days’ prior written notice to the
Issuer, the Servicer and the Noteholders. Noteholders of a majority of the Outstanding Principal
Balance of any class of Notes may at any time remove the Trustee as to such class without cause,
with the consent of the Issuer (such consent not to be unreasonably withheld) if no Event of
Default shall have occurred and be continuing, by an instrument in writing delivered to the Issuer,
the Servicer and the Trustee being removed. In addition, the Issuer may remove the Trustee as to
any class of Notes if (a) such Trustee fails to comply with Section 310 of the Trust Indenture Act
(as if the Trust Indenture Act applied to this Indenture) after written request therefor by the
Issuer or the Noteholders of the related class who have been bona fide Noteholders for at least six
months, (b) such Trustee fails to comply with Section 7.2(d) or any other provision hereof, (c)
such Trustee is adjudged a bankrupt or an insolvent, (d)

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a receiver or public officer takes charge of such Trustee or its property or (e) such Trustee becomes
incapable of acting. References to the Trustee in this Indenture include any successor Trustee as
to all or any of the classes of Notes appointed in accordance with this Article VII. Any
resignation or removal of the Trustee pursuant to this Section 7.1 shall not be effective until a
successor Trustee shall have been duly appointed and vested as Trustee pursuant to Section 7.2.

     Section 7.2 Appointment of Successor.

          (a) In the case of the resignation or removal of the Trustee as to any class of Notes under
Section 7.1, the Issuer shall promptly appoint a successor Trustee as to such class;
provided, that the Noteholders of a majority of the Outstanding Principal Balance of such
class of Notes may appoint, within one year after such resignation or removal, a successor Trustee
as to such class which may be other than the successor Trustee appointed by the Issuer, and such
successor Trustee appointed by the Issuer shall be superseded by the successor Trustee so appointed
by the Noteholders. If a successor Trustee as to any class of Notes shall not have been appointed
and accepted its appointment hereunder within 60 days after the Trustee gives notice of resignation
as to such class, the retiring Trustee, the Issuer, the Servicer or a majority of the Outstanding
Principal Balance of such class of Notes may petition any court of competent jurisdiction for the
appointment of a successor Trustee as to such class. Any successor Trustee so appointed by such
court shall immediately and without further act be superseded by any successor Trustee appointed as
provided in the first sentence of this paragraph within one year from the date of the appointment
by such court.

          (b) Any successor Trustee as to any class of Notes, however appointed, shall execute and
deliver to the Issuer, the Servicer and the predecessor Trustee as to such class an instrument
accepting such appointment, and thereupon such successor Trustee, without further act, shall become
vested with all the estates, properties, rights, powers, duties and trusts of such predecessor
Trustee hereunder in the trusts hereunder applicable to it with like effect as if originally named
the Trustee as to such class herein; provided, that, upon the written request of such
successor Trustee, such predecessor Trustee shall, upon payment of all amounts due and owing to it,
execute and deliver an instrument transferring to such successor Trustee, upon the trusts herein
expressed applicable to it, all the estates, properties, rights, powers and trusts of such
predecessor Trustee, and such predecessor Trustee shall duly assign, transfer, deliver and pay over
to such successor Trustee all moneys or other property then held by such predecessor Trustee
hereunder solely for the benefit of such class of Notes.

          (c) If a successor Trustee is appointed with respect to one or more (but not all) classes of
the Notes, the Issuer, the predecessor Trustee and each successor Trustee with respect to each
class of Notes shall execute and deliver an indenture supplemental hereto which shall contain such
provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts
and duties of the predecessor Trustee with respect to the classes of Notes as to which the
predecessor Trustee is not retiring shall continue to be vested in the predecessor Trustee, and
shall add to or change any of the provisions of this Indenture as shall be necessary to provide for
or facilitate the administration of the Notes hereunder by more than one Trustee.

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          (d) Each Trustee shall be an Eligible Institution and shall meet the Eligibility Requirements,
if there be such an institution willing, able and legally qualified to perform the duties of a
Trustee hereunder.

          (e) Any Person into which the Trustee may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or consolidation to which the
Trustee shall be a party, or any Person to which all or substantially all of the corporate trust
business of the Trustee (including the administration of the trust created by this Indenture) may
be transferred, shall, subject to the terms of Section 7.2(c), be the Trustee under this Indenture
without further act.

ARTICLE VIII

INDEMNITY

     Section 8.1 Indemnity. The Issuer shall indemnify and defend the Trustee (and its officers,
directors, managers, employees and agents) for, and hold it harmless from and against, and
reimburse the Trustee for, any loss, liability or expense incurred by it without bad faith,
negligence or willful misconduct on its part in connection with the acceptance or administration of
this Indenture and its duties under this Indenture and the Notes or any other Transaction Document,
including the costs and expenses of defending itself against any claim or liability and of
complying with any process served upon it or any of its officers in connection with the exercise or
performance of any of its powers or duties, and hold it harmless against any loss, liability or
reasonable expense incurred without bad faith, negligence or willful misconduct on its part,
arising out of or in connection with actions taken or omitted to be taken in reliance on any
Officer’s Certificate furnished hereunder, or the failure to furnish any such Officer’s Certificate
required to be furnished hereunder. The Trustee shall notify the Issuer promptly of any claim
asserted against the Trustee for which it may seek indemnity; provided, however,
that failure to provide such notice shall not invalidate any right to indemnity hereunder. The
Issuer shall defend any such claim and the Trustee shall cooperate in the defense thereof. The
Trustee may have separate counsel and the Issuer shall pay the reasonable fees and expenses of one
separate outside counsel for the Trustee. The Issuer need not pay for any settlements made without
its consent; provided, that such consent shall not be unreasonably withheld or delayed.
The Issuer need not reimburse any expense or provide any indemnity against any loss, liability or
expense incurred by the Trustee through bad faith, negligence or willful misconduct.

     Section 8.2 Noteholders’ Indemnity. The Trustee shall be entitled, subject to such Trustee’s duty
during a Default to act with the required standard of care, to be indemnified by the Noteholders of
any class of Notes before proceeding to exercise any right or power under this Indenture or any
other Transaction Document at the request or Direction of such Noteholders.

     Section 8.3 Survival. The provisions of Section 8.1 and Section 8.2 shall survive the termination
of this Indenture or the earlier resignation or removal of the Trustee.

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ARTICLE IX

MODIFICATION

     Section 9.1 Modification with Consent of Noteholders. With the consent of Noteholders of a
majority of the Outstanding Principal Balance of the Notes on the date of any vote or act of such
Noteholders (voting or acting as a single class), the Trustee may amend or modify this Indenture,
the Notes, the Pledge and Security Agreement, the Purchase and Sale Agreement, the Bill of Sale or
the Servicing Agreement to the extent the Trustee is a party or to consent to the amendment or
modification of the Pledge and Security Agreement, the Purchase and Sale Agreement, the Bill of
Sale or the Servicing Agreement (or the waiver of any provision thereof). However, no such
amendment, modification, consent or waiver may, without the consent of Noteholders of 100% of the
Outstanding Principal Balance of the class of Notes affected thereby:

          (a) reduce the percentage of Noteholders of any such class of Notes required to take or
approve any action hereunder or thereunder;

          (b) reduce the amount or change the time of payment of any amount owing or payable with
respect to any such class of Notes or change the rate of interest or change the manner of
calculation of interest payable with respect to any such class of Notes;

          (c) alter or modify in any respect the provisions of this Indenture with respect to the
Collateral or the Issuer Pledged Collateral for the Notes, the provisions of the Pledge and
Security Agreement with respect to the Issuer Pledged Collateral for the Notes or the manner of
payment or the order of priorities in which payments or distributions hereunder will be made as
between the Noteholders of such Notes and the Issuer or as among the Noteholders; or

          (d) consent to any assignment of the Issuer’s rights to a party other than the Trustee for the
benefit of the Noteholders;

provided, that the Noteholders of a majority of the Outstanding Principal Balance of the
Senior Class of Notes, by written notice to the Trustee, may waive any Default or Event of Default
pursuant to Section 4.5.

     It shall not be necessary for the consent of the Noteholders under this Section 9.1 to approve
the particular form of any proposed amendment or waiver, but it shall be sufficient if such consent
approves the substance thereof. Any such modification approved by the required Noteholders of any
class of Notes will be binding on the Noteholders of the relevant class of Notes and each party to
this Indenture.

     After an amendment under this Section 9.1 becomes effective, the Issuer or, at the direction
of the Issuer, the Trustee shall mail to the Noteholders a notice briefly describing such
amendment. Any failure of the Issuer or the Trustee to mail such notice, or any defect therein,
shall not, however, in any way impair or affect the validity of any such amendment.

     After an amendment under this Section 9.1 becomes effective, it shall bind every Noteholder,
whether or not notation thereof is made on any Note held by such Noteholder.

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     Section 9.2 Modification Without Consent of Noteholders. The Trustee may agree, without the
consent of any Noteholder, to amend or modify this Indenture, the Notes, the Pledge and Security
Agreement, the Purchase and Sale Agreement, the Bill of Sale or the Servicing Agreement to the
extent the Trustee is a party or to consent to the amendment or modification of the Pledge and
Security Agreement, the Purchase and Sale Agreement, the Bill of Sale or the Servicing Agreement
(or the waiver of any provision thereof) to:

          (a) evidence the succession of a successor to the Trustee, the removal of the Trustee or the
appointment of any separate or additional trustee or trustees and to define the rights, powers,
duties and obligations conferred upon any such separate trustee or trustees or co-trustees;

          (b) correct, confirm or amplify the description of any property at any time subject to the
lien of this Indenture or to convey, transfer, assign, mortgage or pledge any property to or with
the Trustee;

          (c) cure any ambiguity in or correct or supplement any defective or inconsistent provision of
this Indenture, the Notes, the Pledge and Security Agreement, the Purchase and Sale Agreement, the
Bill of Sale or the Servicing Agreement, in any manner that will not adversely affect the interests
of the Noteholders in any material respect as confirmed in an Officer’s Certificate of the Issuer;

          (d) grant or confer upon the Trustee for the benefit of the Noteholders any additional rights,
remedies, powers, authority or security which may be lawfully granted or conferred and which are
not contrary or inconsistent with this Indenture;

          (e) add to the covenants or agreements to be observed by the Issuer, which are not contrary to
this Indenture, or to add Events of Default for the benefit of the Noteholders;

          (f) comply with the requirements of the SEC or any regulatory body or any Applicable Law; or

          (g) effect any indenture supplemental hereto or any other amendment, modification, supplement,
waiver or consent with respect to this Indenture, the Notes, the Pledge and Security Agreement, the
Purchase and Sale Agreement, the Bill of Sale or the Servicing Agreement; provided, that
such indenture supplemental hereto, amendment, modification, supplement, waiver or consent will not
adversely affect the interests of the Noteholders in any material respect as confirmed in an
Officer’s Certificate of the Issuer.

     After an amendment under this Section 9.2 becomes effective, the Issuer or, at the direction
of the Issuer, the Trustee shall mail to the Noteholders a notice briefly describing such
amendment. Any failure of the Issuer or the Trustee to mail such notice, or any defect therein,
shall not, however, in any way impair or affect the validity of any such amendment.

     After an amendment under this Section 9.2 becomes effective, it shall bind every Noteholder,
whether or not notation thereof is made on any Note held by such Noteholder.

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     Section 9.3 Subordination; Priority of Payments. The subordination provisions contained in
Article X may not be amended or modified without the consent of Noteholders of 100% of the
Outstanding Principal Balance of the class of Notes affected thereby. In no event shall the
provisions set forth in Section 3.7 relating to the priority of payment of Expenses be amended or
modified without the consent of Noteholders of 100% of the Outstanding Principal Balance of the
Notes.

     Section 9.4 Execution of Amendments by Trustee. In executing, or accepting the additional trusts
created by, any amendment or modification to this Indenture permitted by this Article IX or the
modifications thereby of the trusts created by this Indenture, the Trustee shall be entitled to
receive, and shall be fully protected in relying upon, an Officer’s Certificate and an Opinion of
Counsel stating that the execution of such amendment is authorized or permitted by this Indenture.
The Trustee may, but shall not be obligated to, enter into any such amendment which affects the
Trustee’s own rights, duties or immunities under this Indenture or otherwise.

     Section 9.5 Conformity with Trust Indenture Act. Every indenture supplemental hereto pursuant to
this Article IX shall conform to the requirements of the Trust Indenture Act as then in effect (as
if the Trust Indenture Act applied to this Indenture).

ARTICLE X

SUBORDINATION

     Section 10.1 Subordination of the Notes.

          (a) Each of the Issuer and the Trustee (on behalf of the Noteholders) covenants and agrees,
and each Noteholder, by its acceptance of a Note, covenants and agrees, that the Notes of each
class will be issued subject to the provisions of this Article X. Each Noteholder, by its
acceptance of a Note, further agrees that all amounts payable on any Note will, to the extent and
in the manner set forth in this Article X and Section 3.7, be subordinated in right of payment to
the prior payment in full of all Expenses payable to the Service Providers pursuant to this
Indenture and the other Transaction Documents. Each Noteholder of a Class B Note, by its
acceptance of a Class B Note, further agrees that all amounts payable on any Class B Note will, to
the extent and in the manner set forth in this Article X and Section 3.7, be subordinated in right
of payment to the payment in full of the Class A Notes. Any claim to payment so stated to be
subordinated is referred to as a “Subordinated Claim”; each claim to payment to which
another claim to payment is a Subordinated Claim is referred to as a “Senior Claim” with
respect to such Subordinated Claim.

          (b) If, prior to the payment in full of all Senior Claims then due and payable, the Trustee or
any Noteholder of a Subordinated Claim shall have received any payment or distribution in respect
of such Subordinated Claim in excess of the amount to which such Noteholder was then entitled under
Section 3.7, then such payment or distribution shall be received and held in trust by such Person
and paid over or delivered to the Trustee for application as provided in Section 3.7.

          (c) If any Service Provider, the Trustee or any Noteholder of any Senior Claim receives any
payment in respect of any Senior Claim which is subsequently invalidated, declared

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preferential, set aside and/or required to be repaid to a trustee, receiver or other party,
then, to the extent such payment is so invalidated, declared preferential, set aside and/or
required to be repaid, such Senior Claim shall be revived and continue in full force and effect and
shall be entitled to the benefits of this Article X, all as if such payment had not been received.

          (d) The Trustee (on its own behalf and on behalf of the Noteholders) and the Issuer each
confirm that the payment priorities specified in Section 3.7 shall apply in all circumstances.

          (e) Each Noteholder, by its acceptance of a Note, authorizes and expressly directs the Trustee
on its behalf to take such action as may be necessary or appropriate to effectuate the
subordination provided in this Article X, and appoints the Trustee its attorney-in-fact for such
purposes, including, in the event of any dissolution, winding-up, liquidation or reorganization of
the Issuer (whether in bankruptcy, insolvency, receivership, reorganization or similar proceedings
or upon an assignment for the benefit of creditors or otherwise), any actions tending towards
liquidation of the property and assets of the Issuer or the filing of a claim for the unpaid
balance of its Notes in the form required in those proceedings.

          (f) If payment on the Notes is accelerated as a result of an Event of Default, the Issuer
shall promptly notify the holders of the Senior Claims of such acceleration.

          (g) After all Senior Claims are paid in full and until the Subordinated Claims are paid in
full, and to the extent that such Senior Claims shall have been paid with funds that would, but for
the subordination pursuant to this Article X, have been paid to and retained by such holders of
Subordinated Claims, the holders of Subordinated Claims shall be subrogated to the rights of
holders of Senior Claims to receive payments applicable to Senior Claims. A payment made under
this Article X to holders of Senior Claims which otherwise would have been made to the holders of
Subordinated Claims is not, as between the Issuer and the holders of Subordinated Claims, a payment
by the Issuer.

          (h) No right of any holder of any Senior Claim to enforce the subordination of any
Subordinated Claim shall be impaired by an act or failure to act by the Issuer or the Trustee or by
any failure by either the Issuer or the Trustee to comply with this Indenture.

          (i) Each Noteholder by accepting a Note acknowledges and agrees that the foregoing
subordination provisions are, and are intended to be, an inducement and a consideration to each
holder of any Senior Claim, whether such Senior Claim was created or acquired before or after the
issuance of such Noteholder’s claim, to acquire and continue to hold such Senior Claim, and such
holder of any Senior Claim shall be deemed conclusively to have relied on such subordination
provisions in acquiring and continuing to hold such Senior Claim. Each holder of a Subordinated
Claim agrees to comply with the provisions of Article IV.

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ARTICLE XI

DISCHARGE OF INDENTURE

     Section 11.1 Discharge of Indenture.

          (a) When (i) the Issuer delivers to the Trustee all Outstanding Notes (other than Notes
replaced pursuant to Section 2.8) for cancellation or (ii) all Outstanding Notes have become due
and payable, whether at maturity or as a result of the mailing of a notice of an Optional
Redemption pursuant to Section 3.10(b) or any other Redemption pursuant to Section 3.10(c) and the
Issuer irrevocably deposits in the Redemption Account funds sufficient to pay at maturity or upon
redemption all Outstanding Notes, including interest and any Premium thereon to maturity or the
Redemption Date (other than Notes replaced pursuant to Section 2.8), and if in either case the
Issuer pays all other sums payable hereunder by the Issuer, then this Indenture shall, subject to
Section 11.1(b), cease to be of further effect and the security interest granted to the Trustee
hereunder in the Collateral and the Indenture Estate shall terminate. The Trustee shall
acknowledge satisfaction and discharge of this Indenture, and file all UCC termination statements
and similar documents prepared by the Issuer, on demand of the Issuer accompanied by an Officer’s
Certificate and an Opinion of Counsel, at the cost and expense of the Issuer, to the effect that
any conditions precedent to a discharge of this Indenture have been met.

          (b) Notwithstanding Section 11.1(a), the Issuer’s obligations in Section 8.1 and the Trustee’s
obligations in Section 12.13 shall survive the satisfaction and discharge of this Indenture.

ARTICLE XII

MISCELLANEOUS

     Section 12.1 Right of Trustee to Perform. If the Issuer for any reason fails to observe or
punctually to perform any of its obligations to the Trustee, whether under this Indenture, under
any of the other Transaction Documents or otherwise, the Trustee shall have the power (but shall
have no obligation), on behalf of or in the name of the Issuer or otherwise, to perform such
obligations or cause performance of such obligations and to take any steps which the Trustee may,
in its absolute discretion, consider appropriate with a view to remedying, or mitigating the
consequences of, such failure by the Issuer, in which case the reasonable expenses of the Trustee,
including the fees and expenses of its counsel, incurred in connection therewith shall be payable
by the Issuer under Section 8.1; provided, that no exercise or failure to exercise this
power by the Trustee shall in any way prejudice the Trustee’s other rights under this Indenture or
any of the other Transaction Documents.

     Section 12.2 Waiver. Any waiver by any party of any provision of this Indenture or any right,
remedy or option hereunder shall only prevent and estop such party from thereafter enforcing such
provision, right, remedy or option if such waiver is given in writing and only as to the specific
instance and for the specific purpose for which such waiver was given. The failure or refusal of
any party hereto to insist in any one or more instances, or in a course of dealing, upon the
strict performance of any of the terms or provisions of this Indenture by any party hereto or the
partial exercise of any right, remedy or option hereunder shall not be construed as a waiver or
relinquishment of any such term or provision, but the same shall

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continue in full force and effect.
No failure on the part of the Trustee to exercise, and no delay on its part in exercising, any
right or remedy under this Indenture will operate as a waiver thereof, nor will any single or
partial exercise of any right or remedy preclude any other or further exercise thereof or the
exercise of any other right or remedy. The rights and remedies provided in this Indenture are
cumulative and not exclusive of any rights or remedies provided by law.

     Section 12.3 Severability. In the event that any provision of this Indenture or the application
thereof to any party hereto or to any circumstance or in any jurisdiction governing this Indenture
shall, to any extent, be invalid or unenforceable under any applicable statute, regulation or rule
of law, then such provision shall be deemed inoperative to the extent that it is invalid or
unenforceable, and the remainder of this Indenture, and the application of any such invalid or
unenforceable provision to the parties, jurisdictions or circumstances other than to whom or to
which it is held invalid or unenforceable, shall not be affected thereby nor shall the same affect
the validity or enforceability of this Indenture. The parties hereto further agree that the
holding by any court of competent jurisdiction that any remedy pursued by the Trustee hereunder is
unavailable or unenforceable shall not affect in any way the ability of the Trustee to pursue any
other remedy available to it.

     Section 12.4 Restrictions on Exercise of Certain Rights. The Trustee and, during the continuance
of a payment Default with respect to the Senior Class of Notes, the Senior Trustee, except as
otherwise provided in Section 4.4, may sue for recovery or take any other steps for the purpose of
recovering any of the obligations hereunder or any other debts or liabilities whatsoever owing to
it by the Issuer. Each of the Noteholders shall at all times be deemed to have agreed by virtue of
the acceptance of the Notes that only the Trustee and, during the continuance of a payment Default
with respect to the Senior Class of Notes, the Senior Trustee, except as provided in Section 4.4,
may take any steps for the purpose of procuring the appointment of an administrative receiver,
examiner, receiver or similar officer or the making of an administration order or for instituting
any bankruptcy, reorganization, arrangement, insolvency, winding-up, liquidation, composition,
examination or any like proceedings under Applicable Law.

     Section 12.5 Notices. All Notices shall be in writing and shall be effective (a) upon receipt when
sent through the mails, registered or certified mail, return receipt requested, postage prepaid,
with such receipt to be effective the date of delivery indicated on the return receipt, (b) upon
receipt when sent by an overnight courier, (c) on the date personally delivered to an authorized
officer of the party to which sent, (d) on the date transmitted by legible telecopier transmission
with a confirmation of receipt or (e) in the case of reports under Article III and any other report
which is of a routine nature, on the date sent by first class mail or overnight courier or
transmitted by legible
telecopier transmission, in all cases, with a copy emailed to the recipient at the applicable
address, addressed to the recipient as follows:

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if to the Issuer, to:

Argatroban Royalty Sub LLC

c/o Encysive Pharmaceuticals Inc.

4848 Loop Central Drive

Suite 700

Houston, Texas 77081

Attention: Gordon Busenbark

Telephone: 713-578-6439

Facsimile: 713-796-8232

Email: gbusenbark@encysive.com

if to the Parent or the Servicer, to:

Encysive Pharmaceuticals Inc.

4848 Loop Central Drive

Suite 700

Houston, Texas 77081

Attention: Gordon Busenbark

Telephone: 713-578-6439

Facsimile: 713-796-8232

Email: gbusenbark@encysive.com

if to the Trustee, the Registrar, the Paying Agent or the Calculation Agent, to:

U.S. Bank National Association

One Federal Street, 3rd Floor

Boston, Massachusetts 02110

Attention: Corporate Trust Services (Argatroban Royalty Sub LLC)

Telephone: 617-603-6553

Facsimile: 617-603-6683

A copy of each notice given hereunder to any party hereto shall also be given to each of the other
parties hereto. Each party hereto may, by notice given in accordance herewith to each of the other
parties hereto, designate any further or different address to which subsequent Notices shall be
sent; provided, however, in the case of GSK, such notice may be given by the
Servicer.

     Section 12.6 Assignments. This Indenture shall be a continuing obligation of the Issuer and shall
(a) be binding upon the Issuer and its successors and assigns and (b) inure to the benefit of and
be enforceable by the Trustee and by its successors, transferees and assigns. The Issuer may not
assign any of its obligations under this Indenture or delegate any of its duties hereunder.

     Section 12.7 Application to Court. The Trustee may at any time after the service of an Acceleration Notice apply to any court
of competent jurisdiction for an order that the terms of this Indenture be carried into execution
under the direction of such court and for the appointment of a Receiver of the Collateral or any
part thereof and for any other order in relation to the administration of this Indenture as the
Trustee shall deem fit, and it may assent to or approve any application to any court of competent
jurisdiction made at the instigation of any of the

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Noteholders and shall be indemnified by the
Issuer against all costs, charges and expenses incurred by it in relation to any such application
or proceedings.

     Section 12.8 GOVERNING LAW. THIS INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE INTERNAL SUBSTANTIVE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE RULES THEREOF
RELATING TO CONFLICTS OF LAW OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE
OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
WITH SUCH LAWS.

     Section 12.9 Jurisdiction.

          (a) Each of the parties hereto agrees that the U.S. federal and State of New York courts
located in the Borough of Manhattan, The City of New York shall have jurisdiction to hear and
determine any suit, action or proceeding, and to settle any disputes, which may arise out of or in
connection with this Indenture and, for such purposes, submits to the jurisdiction of such courts.
Each of the parties hereto waives any objection which it might now or hereafter have to the U.S.
federal or State of New York courts located in the Borough of Manhattan, The City of New York being
nominated as the forum to hear and determine any suit, action or proceeding, and to settle any
disputes, which may arise out of or in connection with this Indenture and agrees not to claim that
any such court is not a convenient or appropriate forum. Each of the parties hereto has
irrevocably designated, appointed and empowered the respective Persons named in Exhibit C
as its designee, appointee and agent to receive, accept and acknowledge for and on its behalf, and
its properties, assets and revenues, service of any and all legal process, summons, notices and
documents that may be served in any suit, action or proceeding brought against such party in any
United States or state court arising out of or relating to this Indenture or the Notes. If for any
reason any such designee, appointee and agent hereunder shall cease to be available to act as such,
such party agrees to designate a new designee, appointee and agent in the Borough of Manhattan, The
City of New York on the terms and for the purposes of this Section 12.9 satisfactory to such other
party. Each party further hereby irrevocably consents and agrees to the service of any and all
legal process, summons, notices and documents in any suit, action or proceeding against such party
by serving a copy thereof upon the relevant agent for service of process referred to in this
Section 12.9 (whether or not the appointment of such agent shall for any reason prove to be
ineffective or such agent shall accept or acknowledge such service) or by mailing copies thereof by
registered or certified mail, postage prepaid, to such party at its address specified in or
designated pursuant to this Indenture. Each party agrees that the failure of any such designee,
appointee and agent to give any notice of such service to it shall not impair or affect in any way
the validity of such service or any judgment rendered in any action or proceeding based thereon.
Nothing herein shall in any way be deemed to limit the ability of the
Issuer or the Trustee and the Noteholders, as the case may be, to serve any such legal
process, summons, notices and documents in any other manner permitted by Applicable Law or to
obtain jurisdiction over such party or bring suits, actions or proceedings against such party in
such other jurisdictions, and in such manner, as may be permitted by Applicable Law.

          (b) The submission to the jurisdiction of the courts referred to in Section 12.9(a) shall not
(and shall not be construed so as to) limit the right of the Trustee to take proceedings

71

 

against
the Issuer in any other court of competent jurisdiction, nor shall the taking of proceedings in any
one or more jurisdictions preclude the taking of proceedings in any other jurisdiction, whether
concurrently or not.

          (c) Each of the parties hereto hereby consents generally in respect of any legal action or
proceeding arising out of or in connection with this Indenture to the giving of any relief or the
issue of any process in connection with such action or proceeding, including the making,
enforcement or execution against any property whatsoever (irrespective of its use or intended use)
of any order or judgment which may be made or given in such action or proceeding.

          (d) If, for the purpose of obtaining a judgment or order in any court, it is necessary to
convert a sum due hereunder to any Noteholder from U.S. dollars into another currency, the Issuer
has agreed, and each Noteholder by holding a Note will be deemed to have agreed, to the fullest
extent that they may effectively do so, that the rate of exchange used shall be that at which, in
accordance with normal banking procedures, such Noteholder could purchase U.S. dollars with such
other currency in the Borough of Manhattan, The City of New York on the Business Day preceding the
day on which final judgment is given.

          (e) The obligation of the Issuer in respect of any sum payable by it to a Noteholder shall,
notwithstanding any judgment or order in a currency other than U.S. dollars (the “Judgment
Currency”), be discharged only to the extent that, on the Business Day following receipt by
such Noteholder of such security of any sum adjudged to be so due in the Judgment Currency, such
Noteholder may in accordance with normal banking procedures purchase U.S. dollars with the Judgment
Currency. If the amount of U.S. dollars so purchased is less than the sum originally due to such
Noteholder in the Judgment Currency (determined in the manner set forth in Section 12.9(d)), the
Issuer agrees, as a separate obligation and notwithstanding any such judgment, to indemnify such
Noteholder against such loss, and, if the amount of the U.S. dollars so purchased exceeds the sum
originally due to such Noteholder, such Noteholder agrees to remit to the Issuer such excess,
provided that such Noteholder shall have no obligation to remit any such excess as long as the
Issuer shall have failed to pay such Noteholder any obligations due and payable under the Notes of
such Noteholder, in which case such excess may be applied to such obligations of the Issuer under
such Notes in accordance with the terms thereof. The foregoing indemnity shall constitute a
separate and independent obligation of the Issuer and shall continue in full force and effect
notwithstanding any such judgment or order as aforesaid.

          (f) EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ALL RIGHT OF TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN CONNECTION WITH THIS INDENTURE OR ANY MATTER
ARISING HEREUNDER.

     Section 12.10 Counterparts. This Indenture may be executed in one or more counterparts by the
parties hereto, and each such counterpart shall be considered an original and all such counterparts
shall constitute one and the same instrument.

     Section 12.11 Table of Contents and Headings. The Table of Contents and headings of the Articles
and Sections of this Indenture have been inserted for convenience of reference only,

72

 

are not to be
considered a part hereof and shall in no way modify or restrict any of the terms or provisions
hereof.

     Section 12.12 Trust Indenture Act. This Indenture shall not be qualified under the Trust Indenture
Act and shall not be subject to the provisions of the Trust Indenture Act, although it shall
incorporate such provisions for ease of reference.

     Section 12.13 Confidential Information. The Trustee, in its individual capacity and as Trustee,
agrees and acknowledges that all information (including Confidential Information) provided to the
Trustee by the Parent may be considered to be proprietary and confidential information of GSK. The
Trustee agrees to take all reasonable precautions necessary to keep such information confidential,
which precautions shall be no less stringent than those which the Trustee employs to protect its
own confidential information. The Trustee shall not disclose to any third party other than as set
forth herein, and shall not use for any purpose other than the exercise of the Trustee’s rights and
the performance of its obligations under this Indenture, any such information without the prior
written consent of GSK. In addition, the Trustee agrees to be bound by the provisions of Section 8
of the GSK License Agreement to the extent it receives confidential information of GSK pursuant to
Section 5.3 of this Indenture or Section 4.1 of the Servicing Agreement. The Trustee shall limit
access to such information received hereunder to (a) its directors, officers, managers and
employees and (b) its legal advisors, to each of whom disclosure of such information is necessary
for the purposes described above; provided, however, that in each case such party
has expressly agreed to maintain such information in confidence under terms and conditions
substantially identical to the terms of this Section 12.13.

     The Trustee agrees that GSK does not have any responsibility whatsoever for any reliance on
such information by the Trustee or by any Person to whom such information is disclosed in
connection with this Indenture, whether related to the purposes described above or otherwise.
Without limiting the generality of the foregoing, the Trustee agrees that GSK makes no
representation or warranty whatsoever to it with respect to such information or its suitability for
such purposes. The Trustee further agrees that it shall not acquire any rights against GSK or any
employee, officer, director, manager, representative or agent of GSK (together with GSK,
“Confidential Parties”) as a result of the disclosure of such information to the Trustee or
to any Noteholder or Beneficial Holder and that no Confidential Party has any duty, responsibility,
liability or obligation to any Person as a result of any such disclosure.

     In the event the Trustee is required to disclose any such information received hereunder in
order to comply with any laws, regulations or court orders, it may disclose such information only
to the extent necessary for such compliance; provided, however, that it shall give
GSK and the Issuer reasonable advance written notice of any such court proceeding in which such
disclosure may be required pursuant to a court order so as to afford GSK a full and fair
opportunity to oppose the issuance of such order and to appeal therefrom and shall cooperate
reasonably with GSK in opposing such order and in securing confidential treatment of any such
information to be disclosed and/or obtaining a protective order narrowing the scope of such
disclosure.

     The Trustee agrees that GSK is an express third-party beneficiary of the provisions of this
Section 12.13.

73

 

     Each of the Calculation Agent, the Paying Agent and the Registrar agrees to be bound by this
Section 12.13 to the same extent as the Trustee.

     Section 12.14 Limited Recourse. Each of the parties hereto accepts that the enforceability against
the Issuer of the obligations of the Issuer hereunder and under the Notes shall be limited to the
assets of the Issuer, whether tangible or intangible, real or personal (including the Collateral)
and the proceeds thereof. Once all such assets have been realized upon and such assets (and
proceeds thereof) have been applied in accordance with Article III, any outstanding obligations of
the Issuer shall be extinguished. Each of the parties hereto further agrees that it shall take no
action against any employee, director, officer or administrator of the Issuer or the Trustee in
relation to this Indenture; provided, that nothing herein shall limit the Issuer (or its
permitted successors or assigns, including any party hereto that becomes such a successor or
assign) from pursuing claims, if any, against any such person. The provisions of this Section
12.14 shall survive termination of this Indenture; provided, further, that the
foregoing shall not in any way limit, impair or otherwise affect any rights of the Trustee or the
Noteholders to proceed against any such Person (a) for intentional and willful fraud or intentional
and willful misrepresentations on the part of or by such Person or (b) for the receipt of any
distributions or payments to which the Issuer or any successor in interest is entitled, other than
distributions expressly permitted pursuant to this Indenture and the other Transaction Documents.

[SIGNATURE PAGE FOLLOWS]

74

 

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

	 	 	 	 	 
	 	ARGATROBAN ROYALTY SUB LLC,
 as Issuer

By: Encysive Pharmaceuticals Inc., its Manager

 	 
	 	By:  	/s/ Gordon H. Busenbark
 	 
	 	 	Name:  	Gordon H. Busenbark 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	U.S. BANK NATIONAL ASSOCIATION,
 as Trustee

 	 
	 	By:  	/s/ Alison D.B. Nadeau
 	 
	 	 	Name:  	Alison D.B. Nadeau 	 
	 	 	Title:  	Vice President 	 
	 

 

ANNEX A

RULES OF CONSTRUCTION AND DEFINED TERMS

Unless the context otherwise requires, in this Annex A and each Transaction Document to
which this Annex A is attached:

	(a)	 	A term has the meaning assigned to it and an accounting term not otherwise defined has the
meaning assigned to it in accordance with GAAP.
	 
	(b)	 	Unless otherwise defined, all terms used herein or therein that are defined in the UCC shall
have the meanings stated in the UCC.
	 
	(c)	 	Words of the masculine, feminine or neuter gender shall mean and include the correlative
words of other genders, and words in the singular shall include the plural, and vice versa.
	 
	(d)	 	The terms “include”, “including” and similar terms shall be construed as if followed by the
phrase “without limitation”.
	 
	(e)	 	References to an agreement or other document include references to such agreement or document
as amended, restated, reformed, supplemented or otherwise modified in accordance with the
terms thereof and include any Annexes, Exhibits and Schedules attached thereto, and the
provisions thereof apply to successive events and transactions.
	 
	(f)	 	References to any statute or other legislative provision shall include any statutory or
legislative modification or re-enactment thereof, or any substitution therefor.
	 
	(g)	 	References to any Person shall be construed to include such Person’s successors and permitted
assigns.
	 
	(h)	 	The word “will” shall be construed to have the same meaning and effect as the word “shall”.
	 
	(i)	 	The words “hereof”, “herein”,
“hereunder” and similar terms when used in this Annex A or any
Transaction Document shall refer to this Annex A or such Transaction Document as a
whole and not to any particular provision hereof or thereof, and Article, Section, Annex,
Schedule and Exhibit references herein and therein are references to Articles and Sections of,
and Annexes, Schedules and Exhibits to, the relevant Transaction Document unless otherwise
specified.
	 
	(j)	 	In the computation of a period of time from a specified date to a later specified date, the
word “from” means “from and including” and each of the
words “to” and “until” means “to but excluding”.
	 
	(k)	 	References to a class of Notes shall be to the Original Class A Notes, to the Class B Notes
or to a class of Refinancing Notes, as applicable.
	 
	(l)	 	References to the Notes include the terms and conditions in the relevant Transaction Document
applicable to the Notes, and any reference to any amount of money due or

 

 

	 	 	payable by reference to the Notes shall include any sum covenanted to be paid by the Issuer
under the relevant Transaction Document in respect of the Notes.
	 
	(m)	 	References to any action, remedy or method of judicial proceeding for the enforcement of the
rights of creditors or of security shall be deemed to include, in respect of any jurisdiction
other than the State of New York, references to such action, remedy or method of judicial
proceeding for the enforcement of the rights of creditors or of security available or
appropriate in such jurisdiction as shall most nearly approximate such action, remedy or
method of judicial proceeding described or referred to in the relevant Transaction Document.
	 
	(n)	 	Where any payment is to be made, any funds are to be applied or any calculation is to be made
under any Transaction Document on a day which is not a Business Day, unless any Transaction
Document otherwise provides, such payment shall be made, such funds shall be applied and such
calculation shall be made on the next succeeding Business Day, and payments shall be adjusted
accordingly, including interest unless otherwise specified; provided, however,
that no interest shall accrue in respect of any payments made on Fixed Rate Notes on that next
succeeding Business Day.

A-2

 

     “144A Global Note” has the meaning set forth in Section 2.1(b) of the Indenture.

     “2nd Memorandum of Understanding” means that certain 2nd Memorandum of Understanding
dated as of August 22, 2000 between Mitsubishi and the Parent.

     “Acceleration Default” means any Event of Default of the type described in Section
4.1(f) of the Indenture.

     “Acceleration Notice” means a written notice given after the occurrence and
continuation of an Event of Default to the Issuer by the Senior Trustee at the instruction of the
Noteholders of a majority of the Outstanding Principal Balance of the Senior Class of Notes,
declaring all Outstanding principal of and accrued and unpaid interest on the Notes to be
immediately due and payable.

     “Accounts” means the Collection Account, any Redemption Account, any Escrow Account,
the Capital Account, the Holdback Account and any other account established pursuant to Section 3.1
of the Indenture.

     “Act” has the meaning set forth in Section 1.3(a) of the Indenture.

     “Actual Beneficial Holder List” has the meaning set forth in Section 2.5(d) of the
Indenture.

     “Additional Interest” means, with respect to the Notes, interest accrued on the amount
of any interest and Premium, if any, in respect of such Notes that is not paid when due at the
Stated Rate of Interest of such Notes for each Interest Accrual Period until any such unpaid
interest or Premium is paid in full, compounded quarterly on each Payment Date, to the fullest
extent permitted by Applicable Law.

     “Affiliate” means, with respect to any Person, any other Person that, directly or
indirectly, controls, is controlled by or is under common control with such Person or is a
director, officer or manager of such Person. For purposes of this definition, “control” of
a Person means the possession, directly or indirectly, of the power (a) to vote 10% or more of the
Capital Securities (on a fully diluted basis) of such Person having ordinary voting power for the
election of directors, managing members or general partners (as applicable) or (b) to direct or
cause the direction of the management and policies of such Person, whether through the ownership of
Voting Securities, by contract or otherwise, and the terms “controlled” and
“controlling” have meanings correlative to the foregoing.

     “Agent Members” has the meaning set forth in Section 2.10(a) of the Indenture.

     “Applicable Law” means, with respect to any Person, all laws, rules, regulations and
orders of Governmental Authorities applicable to such Person or any of its properties or assets.

     “Applicable Treasury Rate” for any Redemption Date means the interest rate (expressed
as a semiannual decimal and, in the case of United States Treasury bills, converted to a bond
equivalent yield) determined on the fourth Business Day prior to such Redemption Date to be the per
annum rate equal to the semiannual yield to maturity for United States Treasury securities

A-3

 

maturing on the Average Life Date of the Original Class A Notes as of such Redemption Date and
trading in the public securities markets either (a) as determined by interpolation between the most
recent weekly average yield to maturity for two series of United States Treasury securities trading
in the public securities markets, (i) one maturing as close as possible to, but earlier than, the
Average Life Date of the Original Class A Notes and (ii) the other maturing as close as possible
to, but later than, the Average Life Date of the Original Class A Notes, in each case as published
in the most recent H.15 (519) or (b) if a weekly average yield to maturity for United States
Treasury securities maturing on the Average Life Date of the Original Class A Notes is reported in
the most recent H.15 (519), such weekly average yield to maturity as published in such H.15 (519).

     “Applicants” has the meaning set forth in Section 6.14 of the Indenture.

     “Approved Holder List” has the meaning set forth in Section 2.5(d) of the Indenture.

     “Argatroban” means the chemical compound known as argatroban, also known as MCI-9038,
whose more specific chemical name is
(2R,4R)-4-methyl-1-[N2-(3-methyl-1,2,3,4-tetrahydro-8-quinolinesulfony
l)-L-arginyl]-2-piperidinecarboxylic acid monohydrate, its prodrugs and metabolites, and all
pharmaceutically active derivatives thereof, such as, but not limited to, esters, salts, hydrates,
solvates, polymorphs and isomers thereof, and shall include compositions comprising such compound,
prodrug or metabolites, or esters, salts, hydrates, solvates, polymorphs and isomers.

     “Assignment Agreement” means that certain Assignment Agreement dated as of April 30,
1997 among Genentech, Mitsubishi and the Parent.

     “Authorized Agent” means, with respect to the Notes, any authorized Calculation Agent,
Paying Agent or Registrar acting as such for the Notes.

     “Available Collections Amount” means, for any Payment Date, the sum of (a) the amount
on deposit in the Collection Account as of the Calculation Date immediately preceding such Payment
Date, (b) the amount on deposit in the Holdback Account as of such Calculation Date to be
transferred to the Collection Account on such Payment Date in accordance with Section 3.12 of the
Indenture, (c) the amount of any net investment income on amounts on deposit in the Accounts as of
such Calculation Date and (d) the amount of any Hedge Receipts due on or prior to such Payment
Date.

     “Average Life Date” of the Original Class A Notes means the date that follows the
applicable Redemption Date by a period equal to the Remaining Weighted Average Life of the Original
Class A Notes.

     “Bankruptcy Code” means Title 11 of the United States Code, as amended.

     “Base Case Amortization Schedule” means the base case amortization schedule set forth
under “The Notes and the Indenture—The Notes and Payment—Payments on the Notes—Base Case
Amortization Schedule” in the Private Placement Memorandum.

A-4

 

     “Base Case Final Payment Date” means, for any Class B Notes or any Refinancing Notes,
if applicable, the relevant date specified in the indenture supplemental to the Indenture and/or
the Manager Resolution providing for their issuance.

     “Beneficial Holder” means any Person that holds a Beneficial Interest in any Global
Note through an Agent Member.

     “Beneficial Interest” means any beneficial interest in any Global Note, whether held
directly by an Agent Member or held indirectly through an Agent Member’s beneficial interest in
such Global Note.

     “Bill of Sale” means the Bill of Sale, dated as of the Closing Date, executed by the
Parent and the Issuer, substantially in the form of Exhibit A to the Purchase and Sale
Agreement.

     “Business Day” means (a) any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by Applicable Law to remain closed or
a day on which the Corporate Trust Office is closed for business and (b) for purposes of
calculating amounts at the London interbank offered rate and related calculations relative to the
making, continuing, prepaying or repaying of Indebtedness in respect thereof, any day that is a
Business Day described in clause (a) that is also a day on which dealings in U.S. dollars are
carried on in the London interbank market.

     “Calculation Agent” means U.S. Bank National Association and any successor appointed
pursuant to Section 6.11 of the Indenture.

     “Calculation Date” means, for any Payment Date, the fifth Business Day immediately
preceding such Payment Date.

     “Calculation Report” has the meaning set forth in Section 3.5(b) of the Indenture.

     “Capital Account” has the meaning set forth in Section 3.1(a) of the Indenture.

     “Capital Securities” means, with respect to any Person, all shares, interests,
participations or other equivalents (however designated, whether voting or non-voting) of such
Person’s capital, whether now outstanding or issued after the Closing Date, including common
shares, ordinary shares, preferred shares, membership interests or share capital in a limited
liability company or other Person, limited or general partnership interests in a partnership,
beneficial interests in trusts or any other equivalent of such ownership interest or any options,
warrants and other rights to acquire such shares or interests, including rights to allocations and
distributions, dividends, redemption payments and liquidation payments.

     “Cash Purchase Price” has the meaning set forth in Section 3.1(a) of the Purchase and
Sale Agreement.

     “Class A Notes” means the Original Class A Notes and any Refinancing Notes issued to
refinance the foregoing.

     “Class B Issuance” has the meaning set forth in Section 2.16(a) of the Indenture.

A-5

 

     “Class B Notes” means the Class B Notes, if any, issued in such form as shall be
authorized by a Manager Resolution and any indenture supplemental to the Indenture in respect
thereof pursuant to Section 2.16 of the Indenture and any Refinancing Notes issued to refinance the
foregoing.

     “Clearstream” means Clearstream Banking, a French société anonyme.

     “Closing Date” means the date on which the conditions set forth in Section 4.1 of the
Purchase and Sale Agreement are satisfied, the sale, transfer, conveyance, assignment, contribution
and granting of the Purchased Assets to the Issuer pursuant to Article II of the Purchase and Sale
Agreement are effective and the Original Class A Notes are issued, which date shall be February 6,
2007.

     “Code” means the Internal Revenue Code of 1986 and the regulations thereunder.

     “Collateral” has the meaning set forth in the Granting Clause of the Indenture.

     “Collection Account” has the meaning set forth in Section 3.1(a) of the Indenture.

     “Collections” means, without duplication, (a) Royalty Payments, (b) any Hedge
Receipts, (c) any net investment income on amounts on deposit in the Accounts and (d) any other
amounts received by the Issuer (other than the proceeds of any Notes and capital contributions from
the Parent).

     “Confidential Information” means, collectively, (i) the information contemplated by
Section 8 of the GSK License Agreement, (ii) any materials containing or based on any of the
foregoing (including any financial models based thereon) and (iii) any portions of any of the
foregoing.

     “Confidentiality Agreement” means, with respect to Noteholders or Beneficial Holders
at the Closing Date with respect to the Original Class A Notes (or, with respect to any Class B
Notes or any Refinancing Notes, the date of issuance of such Class B Notes or Refinancing Notes), a
confidentiality agreement for the benefit of the Issuer provided to the Registrar on or prior to
the Closing Date (or such date of issuance), and otherwise means a resale confidentiality agreement
for the benefit of the Issuer substantially in the form of Exhibit B to the Indenture,
together in each case with an expanded Internal Revenue Service Form W-9 substantially in the form
of Exhibit K to the Indenture.

     “Confidential Parties” has the meaning set forth in Section 12.13 of the Indenture.

     “Convertible Notes Indenture” means that certain Indenture dated as of March 16, 2005
between the Parent and The Bank of New York Trust Company, N.A., a national banking association, as
trustee.

     “Corporate Trust Office” means the office of the Trustee in the city at which at any
particular time the Trustee’s duties under the Transaction Documents shall be principally
administered and, on the Closing Date, shall be One Federal Street, 3rd Floor, Boston,
Massachusetts 02110.

A-6

 

     “Default” means a condition, event or act that, with the giving of notice or the lapse
of time or both, would constitute an Event of Default; provided, that a failure to pay
interest on the Original Class A Notes (except to the extent of the Available Collections Amount
available for interest payments and any capital contributed to the Issuer by the Parent as
described in Section 3.1(f) of the Indenture), when such amount becomes due on any Payment Date
other than the Final Legal Maturity Date or any Redemption Date, does not constitute a Default;
provided, further, that a failure to pay any interest on the Original Class A Notes
not paid on any Payment Date in full with Additional Interest thereon by the next succeeding
Payment Date shall be an immediate Event of Default.

     “Definitive Notes” has the meaning set forth in Section 2.1(b) of the Indenture.

     “Direction” has the meaning set forth in Section 1.3(c) of the Indenture.

     “Distribution Report” has the meaning set forth in Section 2.13(a) of the Indenture.

     “Dollar” or the sign “$” means lawful money of the United States.

     “DTC” means The Depository Trust Company, its nominees and their respective
successors.

     “DTC List” has the meaning set forth in Section 2.5(d) of the Indenture.

     “Eligibility Requirements” has the meaning set forth in Section 2.3(b) of the
Indenture.

     “Eligible Account” means a trust account maintained on the books and records of an
Eligible Institution in the name of the Trustee.

     “Eligible Institution” means any bank organized under the laws of the U.S. or any
state thereof or the District of Columbia (or any domestic branch of a foreign bank), which at all
times has either (a) a long-term unsecured debt rating of at least A2 by Moody’s and A by S&P or
(b) a certificate of deposit rating of at least P-1 by Moody’s and A-1 by S&P.

     “Eligible Investments” means, in each case, book-entry securities, negotiable
instruments or securities represented by instruments in bearer or registered form that evidence:

     (a) direct obligations of, and obligations fully Guaranteed as to timely payment of
principal and interest by, the U.S. or any agency or instrumentality thereof the obligations
of which are backed by the full faith and credit of the U.S. (having original maturities of
no more than 365 days or such lesser time as is required for the distribution of funds);

     (b) demand deposits, time deposits or certificates of deposit of the Operating Bank or
of depositary institutions or trust companies organized under the laws of the U.S. or any
state thereof or the District of Columbia (or any domestic branch of a foreign bank) (i)
having original maturities of no more than 365 days or such lesser time as is required for
the distribution of funds; provided, that, at the time of investment or contractual
commitment to invest therein, the short-term debt rating of such depositary

A-7

 

institution or trust company shall be at least P-1 by Moody’s and A-1 by S&P or (ii)
having maturities of more than 365 days and, at the time of the investment or contractual
commitment to invest therein, a rating of at least A2 by Moody’s and A by S&P;

     (c) corporate or municipal debt obligations (i) having remaining maturities of no more
than 365 days or such lesser time as is required for the distribution of funds and having,
at the time of the investment or contractual commitment to invest therein, a rating of at
least P-1 or A2 by Moody’s and A-1 or A by S&P or (ii) having remaining maturities of more
than 365 days and, at the time of the investment or contractual commitment to invest
therein, a rating of at least A2 by Moody’s and A by S&P;

     (d) investments in money market funds (including funds in respect of which the Trustee
or any of its Affiliates is investment manager or otherwise) having a rating of at least A2
by Moody’s and Am by S&P;

     (e) notes or bankers’ acceptances (having original maturities of no more than 365 days
or such lesser time as is required for the distribution of funds) issued by any depositary
institution or trust company referred to in clause (b) above; or

     (f) loan participations with short-term ratings of at least P-2 or A2 by Moody’s and
A-2 or A2 by S&P (or, if no such short-term ratings exist, equivalent long-term ratings of
at least Baa2 by Moody’s or BBB by S&P);

provided, however, that no investment shall be made in any obligations of any
depositary institution or trust company that is identified in a written notice to the Trustee from
the Issuer or the Servicer as having a contractual right to set off and apply any deposits held, or
other indebtedness owing, by the Issuer to or for the credit or the account of such depositary
institution or trust company, unless such contractual right by its terms expressly excludes all
Eligible Investments.

     “ERISA” means the U.S. Employee Retirement Income Security Act of 1974, as amended.

     “ERISA Affiliate” means any trade or business that is treated as a single employer
with the Issuer or the Parent under Section 414 of the Code.

     “Escrow Account” has the meaning set forth in Section 3.1(a) of the Indenture.

     “Escrow List” has the meaning set forth in Section 2.5(d) of the Indenture.

     “Euroclear” means Euroclear Bank S.A./N.V., as operator of the Euroclear system.

     “Event of Default” has the meaning set forth in Section 4.1 of the Indenture.

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

     “Expenses” means any reasonable out-of-pocket fees, costs or expenses of the Issuer,
including the fees, expenses and indemnities of the Service Providers (provided that, with respect

A-8

 

to the Servicer, such expenses shall only be reasonable out-of-pocket expenses), the fees and
out-of-pocket expenses of counsel to the Trustee and the Issuer incurred after the Closing Date in
connection with the transactions contemplated by the Transaction Documents, the fees and expenses
of KPMG LLP or any other nationally recognized independent public accounting firm engaged as
auditors of the Issuer, any commitment fee payable to a Hedge Provider and any payments by the
Issuer to third parties in respect of obligations for which indemnification payments have been
received from the Parent; provided, however, that, except as expressly provided in
the Indenture, Expenses shall not include the Servicing Fee, any Transaction Expenses, any amounts
payable on the Notes, any Hedge Payment or Hedge Breakage Costs, any fees, costs or expenses
relating to the Class B Notes or any other amounts ranking pari passu with or junior to interest
payable on the Class A Notes in the priority of payments set forth under Section 3.7 of the
Indenture.

     “Extension Agreement” means that certain Extension Agreement dated as of June 30, 1995
among Genentech, Mitsubishi and the Parent.

     “Final Legal Maturity Date” means, with respect to (a) the Original Class A Notes
September 30, 2014, and (b) with respect to any Class B Notes or Refinancing Notes, the date
specified in the indenture supplemental to the Indenture providing for their issuance;
provided, that (i) the Final Legal Maturity Date with respect to any Class B Notes or
Refinancing Notes where the proceeds thereof are not used to redeem or refinance all of the
Outstanding Class A Notes shall be no earlier than September 30, 2014 and (ii) if the proceeds of
such Class B Notes or Refinancing Notes are used to redeem or refinance all of the Outstanding
Class A Notes the Final Legal Maturity Date therefor shall be the date specified in such indenture
supplemental to the Indenture.

     “Fixed Rate Notes” means (i) the Original Class A Notes and (ii) any Class B Notes or
Refinancing Notes issued with a fixed rate of interest.

     “Floating Rate Notes” means any Class B Notes or Refinancing Notes issued with a
floating or variable rate of interest.

     “GAAP” means generally accepted accounting principles in effect in the U.S. from time
to time.

     “Genentech” means Genentech, Inc., a Delaware corporation.

     “Global Notes” means any 144A Global Note and Regulation S Global Note.

     “Governmental Authority” means the government of the United States, any other nation
or any political subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other Person exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to
government.

     “GSK” means GlaxoSmithKline plc, a public limited company organized in England, as
successor to GlaxoSmithKline Corporation, a Pennsylvania corporation, and SmithKline Beecham plc,
as private limited company organized in England.

A-9

 

     “GSK License Agreement” means that certain Product Development, License and
Copromotion Agreement dated as of August 5, 1997 between GSK and the Parent, as amended by an
Amendment Agreement dated May 6, 1999 between GSK and the Parent and a letter agreement dated
December 7, 2006 between GSK and the Parent.

     “Guarantee” means any obligation, contingent or otherwise, of any Person directly or
indirectly guaranteeing any Indebtedness or other obligation of any other Person and, without
limiting the generality of the foregoing, any obligation, direct or indirect, contingent or
otherwise, of such Person (a) to purchase or pay (or advance or supply funds for the purchase or
payment of) such Indebtedness or other obligation of such other Person or (b) entered into for
purposes of assuring in any other manner the obligee of such Indebtedness or other obligation of
the payment thereof or to protect such obligee against loss in respect thereof (in whole or in
part); provided, that the term “Guarantee” shall not include endorsements for
collection or deposit in the ordinary course of business. The term “Guarantee” when used
as a verb has a corresponding meaning.

     “H.15 (519)” means the weekly statistical release designated as such, or any successor
publication, published by the Board of Governors of the Federal Reserve System, and the most recent
H.15 (519) is the H.15 (519) published prior to the close of business on the fourth Business Day
prior to the applicable Redemption Date.

     “Hedge Agreement” means any interest rate hedge, cap, floor, swap, option or other
interest rate hedge agreement between the Issuer and any Hedge Provider.

     “Hedge Breakage Costs” means any amounts payable by the Issuer to a Hedge Provider as
a result of any early termination (however described or defined therein) of any Hedge Agreement.

     “Hedge Payment” means, on the Closing Date or on any Payment Date, a net payment to a
Hedge Provider by the Issuer, but not including Hedge Breakage Costs.

     “Hedge Provider” means the counterparty of the Issuer under any Hedge Agreement.

     “Hedge Receipt” means a net payment to be made by a Hedge Provider into the Collection
Account under a Hedge Agreement and includes any termination payment received from any counterparty
to a Hedge Agreement.

     “HMRC” means Her Majesty’s Revenue & Customs of the United Kingdom.

     “Holdback Account” has the meaning set forth in Section 3.1(a) of the Indenture.

     “Incur” has the meaning set forth in Section 5.2(d) of the Indenture.

     “Indebtedness” means, with respect to any Person at any date of determination (without
duplication), (a) all indebtedness of such Person for borrowed money, (b) all obligations of such
Person evidenced by bonds, debentures, notes or other similar instruments, (c) all obligations of
such Person as an account party in respect of letters of credit or other similar instruments
(including reimbursement obligations with respect thereto), (d) all the obligations of such Person

A-10

 

to pay the deferred and unpaid purchase price of property or services, which purchase price is
due more than 90 days after the date of purchasing such property or service or taking delivery and
title thereto or the completion of such services, and payment deferrals arranged primarily as a
method of raising funds to acquire such property or service, (e) all monetary obligations of such
Person and its Subsidiaries under any leasing or similar arrangement which have been (or, in
accordance with GAAP, should be) classified as capitalized leases, (f) all Guarantees of such
Person in respect of any of the foregoing, (g) all monetary obligations of such Person with respect
to any interest rate hedge, cap, floor, swap, option or other interest rate hedge agreement entered
into after the Closing Date, (h) all Indebtedness (as defined in clauses (a) through (g) of this
definition) of other Persons secured by a lien on any asset of such Person, whether or not such
Indebtedness is assumed by such Person, and (i) all Indebtedness (as defined in clauses (a) through
(g) of this definition) of other Persons Guaranteed by such Person.

     “Indemnified Amounts” has the meaning set forth in Section 8.1 of the Purchase and
Sale Agreement.

     “Indemnified Party” has the meaning set forth in Section 8.1 of the Purchase and Sale
Agreement.

     “Indemnitee” has the meaning set forth in Section 19.1 of the Pledge and Security
Agreement.

     “Indemnitees” has the meaning set forth in Section 19.1 of the Pledge and Security
Agreement.

     “Indenture” means that certain indenture, dated as of the Closing
Date, between the Issuer and the Trustee.

     “Indenture Estate” has the meaning set forth in the Granting Clause of the Indenture.

     “Independent Consultant” means L.E.K. Consulting LLC.

     “Independent Consultant’s Report” means the report of the Independent Consultant
included in the Private Placement Memorandum as Appendix A.

     “Independent Member” means a Member who is not at the time of such Person’s admission
to the Issuer, who is not and who has not been at any time during the preceding five years: (a) a
director, manager, officer or employee of the Issuer (other than in the capacity of Independent
Member) or any Affiliate of the Issuer (other than in the capacity of Independent Member); (b) a
Person related to any officer, director, manager or employee of the Issuer (other than in the
capacity of Independent Member) or any Affiliate of the Issuer (other than in the capacity of
Independent Member); (c) a holder (directly or indirectly) of any Voting Securities of the Issuer
or any Affiliate of the Issuer (other than in the capacity of Independent Member); (d) a Person
related to a holder (directly or indirectly) of any Voting Securities of the Issuer or any
Affiliate of the Issuer (other than in the capacity of Independent Member); (e) a purchaser,
customer or any other Person who derives any of its revenues from interactions with the Issuer or
any Affiliate of the Issuer or a family member of such purchaser, customer or other Person; or (f)

A-11

 

a trustee in bankruptcy or other insolvency proceeding for, or a reorganization of, the Parent
or any Subsidiary or Affiliate of the Parent.

     “Institutional Accredited Investor” means a Person that is an accredited investor as
that term is defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act.

     “Interest Accrual Period” means the period beginning on (and including) the Closing
Date (or, with respect to any Class B Notes or any Refinancing Notes, the date of issuance of such
Class B Notes or Refinancing Notes) and ending on (but excluding) the first Payment Date thereafter
and each successive period beginning on (and including) a Payment Date and ending on (but
excluding) the next succeeding Payment Date; provided, however, that the final
Interest Accrual Period shall end on but exclude the final Payment Date (or, if earlier, with
respect to any class of Notes repaid in full, the date such class of Notes is repaid in full).

     “Interest Amount” means, with respect to the Outstanding Principal Balance of any
class of Notes, on any Payment Date, the amount of accrued and unpaid interest at the Stated Rate
of Interest with respect to the Outstanding Principal Balance of such class of Notes on such
Payment Date (including any Additional Interest, if any), determined in accordance with the terms
thereof (including interest accruing after the commencement of a proceeding in bankruptcy,
insolvency or similar law, whether or not permitted as a claim under such law).

     “Involuntary Bankruptcy” means, with respect to the Issuer or the Parent, without the
consent or acquiescence of the Issuer or the Parent, respectively, the entering of an order for
relief or approving a petition for relief or reorganization or any other petition seeking any
reorganization, arrangement, composition, readjustment, liquidation, dissolution or other similar
relief under any present or future bankruptcy, insolvency or similar statute, law or regulation, or
the filing of any such petition against the Issuer or the Parent, respectively, or, without the
consent or acquiescence of the Issuer or the Parent, respectively, the entering of an order
appointing a trustee, custodian, receiver or liquidator of the Issuer or the Parent, respectively,
or of all or any substantial part of the property of the Issuer or the Parent, respectively, in
each case where such petition or order shall remain unstayed or shall not have been stayed or
dismissed within 90 days from entry thereof; provided, however, that none of the
foregoing shall constitute an Involuntary Bankruptcy in respect of the Issuer to the extent one or
more Noteholders cause or join in any such action prior to such time as the Parent has paid in full
its obligations under the Convertible Notes Indenture (as evidenced in accordance with Section
6.3(e)(v) of the Purchase and Sale Agreement).

     “Issuer” means Argatroban Royalty Sub LLC, a Delaware limited liability company, as
issuer of the Notes pursuant to the Indenture.

     “Issuer Organizational Documents” means the certificate of formation of the Issuer
dated as of October 5, 2006 and the amended and restated limited liability company agreement of the
Issuer dated as of the Closing Date.

     “Issuer Pledged Collateral” has the meaning set forth in Section 2.1 of the Pledge and
Security Agreement.

A-12

 

     “Issuer Pledged Equity” has the meaning set forth in Section 2.1(a) of the Pledge and
Security Agreement.

     “Judgment Currency” has the meaning set forth in Section 12.9(e) of the Indenture.

     “Lien” means any security interest, mortgage, pledge, hypothecation, assignment,
deposit arrangement, encumbrance, lien (statutory or otherwise), charge against or interest in
property or other priority or preferential arrangement of any kind or nature whatsoever, in each
case to secure payment of a debt or performance of an obligation, including any conditional sale,
any sale with recourse against the Issuer or any agreement to give any security interest.

     “Liquidated Damages Amount” has the meaning set forth in Section 8.2(a) of the
Purchase and Sale Agreement.

     “Liquidated Damages Event” means that during the Significant Subsidiary Period the
Parent has failed to perform in any material respect any of its covenants under the Purchase and
Sale Agreement or the Pledge and Security Agreement.

     “Loss” means any loss, cost, charge, expense, interest, fee, payment, demand,
liability, claim, action, proceeding, penalty, fine, damages, judgment, order or other sanction,
other than Taxes.

     “Manager” means the manager of the Issuer.

     “Manager Resolution” means a copy of a resolution certified by a Responsible Officer
of the Issuer as having been duly adopted by the Manager and being in full force and effect on the
date of such certification.

     “Material Adverse Effect” means a material adverse effect on (i) the ability of the
Parent or the Servicer, as the case may be, to perform its obligations under any of the Transaction
Documents or the Principal Documents, in each case to which it is a party, (ii) the validity or
enforceability of any of the Principal Documents or the rights or remedies of the Issuer under any
of such Principal Documents or (iii) the Purchased Assets or the ability of the Issuer to perform
any of its obligations under the Notes and the Indenture.

     “MCC/TBC Agreement” means that certain MCC/TBC Agreement dated August 5, 1997 between
Mitsubishi and the Parent.

     “MCI Product Agreement” means that certain MCI Product Agreement dated as of June 30,
1987 between Genentech and Mitsubishi, as amended by Amendment to MCI Product Agreement dated as of
June 25, 1992 between Genentech and Mitsubishi and Amendment No. 2 to MCI Product Agreement dated
as of May 27, 1993 between Genentech and Mitsubishi.

     “Member” means a member of the Issuer.

     “Mitsubishi” means Mitsubishi Pharma Corporation, a Japanese corporation, formerly
named Mitsubishi-Tokyo Pharmaceuticals, Inc., assignee of Mitsubishi Chemical Corporation, a

A-13

 

Japanese corporation, successor to Mitsubishi Kasei Corporation, a Japanese corporation,
successor to Mitsubishi Chemical Industries Limited, a Japanese corporation.

     “Moody’s” means Moody’s Investors Service, Inc. and any successor thereto or, if such
corporation or its successor shall for any reason no longer perform the functions of a securities
rating agency, “Moody’s” shall be deemed to refer to any other nationally recognized
statistical rating organization (within the meaning ascribed thereto by the Exchange Act)
designated by the Issuer.

     “Non-Significant Subsidiary Period” means any period of time other than the
Significant Subsidiary Period.

     “Non-U.S. Person” means a person who is not a U.S. person within the meaning of
Regulation S.

     “Noteholder” means any Person in whose name a Note is registered from time to time in
the Register for such Note.

     “Note Purchase Agreement” means that certain note purchase agreement dated the Closing
Date among the Issuer, the Parent and the Purchaser party thereto.

     “Note Purchase Agreements” means, collectively, each Note Purchase Agreement and the
Other Agreements.

     “Note Purchasers” has the meaning set forth in Section 1.1 of the Note Purchase
Agreement.

     “Notes” means the Original Class A Notes, any Class B Notes and any Refinancing Notes.

     “Notices” means notices, demands, certificates, requests, directions, instructions and
communications.

     “Officer’s Certificate” means a certificate signed by, with respect to the Issuer, a
Responsible Officer of the Issuer and, with respect to any other Person, any officer, director,
manager, trustee or equivalent representative of such Person.

     “Operating Bank” means U.S. Bank National Association or any other Eligible
Institution at which the Accounts are held; provided, that (a) upon the resignation or
removal and the replacement of the Trustee pursuant to the terms of the Indenture, the successor
trustee appointed thereunder shall be the Operating Bank, and (b) if at any time the Operating Bank
ceases to be an Eligible Institution, a successor shall be appointed by the Servicer on behalf of
the Trustee and all Accounts shall thereafter be transferred to and be maintained at such successor
in the name of the Trustee and such successor shall thereafter be the “Operating Bank”.

     “Opinion of Counsel” means a written opinion signed by legal counsel, who may be an
employee of or counsel to the Issuer or the Parent, that meets the requirements of Section 1.2 of
the Indenture.

A-14

 

     “Optional Redemption” has the meaning set forth in Section 3.10(b) of the Indenture.

     “Original Class A Notes” means the Argatroban PhaRMASM Secured 12% Notes
due 2014 of the Issuer in the initial Outstanding Principal Balance of $60,000,000, substantially
in the form of Exhibit A to the Indenture.

     “Other Agreements” has the meaning set forth in Section 3.1 of the Note Purchase
Agreement.

     “Other Note Purchasers” has the meaning set forth in Section 3.1 of the Note Purchase
Agreement.

     “Other Prices” has the meaning set forth in Section 3.1 of the Note Purchase
Agreement.

     “Outstanding” means (a) with respect to the Notes of any class at any time, all Notes
of such class theretofore authenticated and delivered by the Trustee except (i) any such Notes
cancelled by, or delivered for cancellation to, the Trustee, (ii) any such Notes, or portions
thereof, for the payment of principal of and accrued and unpaid interest on which moneys have been
distributed to Noteholders by the Trustee and any such Notes, or portions thereof, for the payment
or redemption of which moneys in the necessary amount have been deposited in the Redemption Account
for such Notes; provided, that, if such Notes are to be redeemed prior to the maturity
thereof in accordance with the requirements of Section 3.10 of the Indenture, written notice of
such Redemption shall have been given as provided in Section 3.11 of the Indenture, or provision
satisfactory to the Trustee shall have been made for giving such written notice, and (iii) any such
Notes in exchange or substitution for which other Notes, as the case may be, have been
authenticated and delivered, or which have been paid pursuant to the terms of the Indenture (unless
proof satisfactory to the Trustee is presented that any of such Notes is held by a Person in whose
hands such Note is a legal, valid and binding obligation of the Issuer), and (b) when used with
respect to any other evidence of Indebtedness, at any time, any principal amount thereof then
unpaid and outstanding (whether or not due or payable).

     “Outstanding Principal Balance” means, with respect to any Note or other evidence of
Indebtedness Outstanding, the total principal amount of such Note or other evidence of Indebtedness
unpaid and Outstanding at any time, as determined in the case of the Notes in the information to be
provided to the Servicer and the Trustee by the Calculation Agent pursuant to Section 3.5(b) of the
Indenture.

     “Parent” means Encysive Pharmaceuticals Inc., a Delaware corporation, formerly named
Texas Biotechnology Corporation.

     “Parent Organizational Documents” means the restated certificate of incorporation of
the Parent dated September 17, 2004, as amended by a certificate of amendment thereto dated May 11,
2005 and the certificate of change of registered agent dated May 24, 2006, and the amended and
restated by-laws of the Parent adopted September 6, 1996, as amended by an amendment adopted June
29, 2000.

     “Parent Shortfall” means the amount, if any, payable by the Parent to Mitsubishi
pursuant to the Principal Documents that is due and payable but that has not been paid by the
Parent.

A-15

 

     “Parent Shortfall Payment” means any payment made by the Trustee in respect of
any Parent Shortfall.

     “Paying Agent” has the meaning set forth in Section 2.3(a) of the Indenture.

     “Payment Date” means each March 30, June 30, September 30 and December 30, commencing
on March 30, 2007 and including the Final Legal Maturity Date; provided, that, if any such
date would otherwise fall on a day that is not a Business Day, the Payment Date falling on such
date shall be the first following day that is a Business Day; provided, further,
that, if any such following Business Day would occur in the succeeding month, then the Payment Date
shall be the first Business Day preceding such date.

     “Permanent Regulation S Global Note” has the meaning set forth in Section 2.1(b) of
the Indenture.

     “Permitted Holder” means (a) the Parent, (b) the Issuer and (c) any Person that (i)
has executed a Confidentiality Agreement and delivered such Confidentiality Agreement to the
Registrar in accordance with the terms of the Indenture and (ii) so long as the Principal Documents
have not been terminated, is not a company ranked in the top 20 pharmaceutical companies in the
United States based on IMS-reported pharmaceutical sales for the calendar year preceding the
proposed transfer and is not an Affiliate of any such entity.

     “Permitted Lien” means (a) any lien for Taxes, assessments and governmental charges or
levies not yet due and payable or which are being contested in good faith by appropriate
proceedings, (b) any Lien created in favor of the Trustee and (c) any other Lien expressly
permitted under the Transaction Documents.

     “Person” means any natural person, firm, corporation, limited liability company,
partnership, joint venture, association, joint-stock company, trust, unincorporated organization,
Governmental Authority or any other legal entity, including public bodies, whether acting in an
individual, fiduciary or other capacity.

     “Placement Agent” means Morgan Stanley & Co. Incorporated.

     “Plan” means any employee benefit plan (within the meaning of Section 3(3) of ERISA)
or other plan or arrangement, whether or not subject to ERISA, that is (or within the preceding six
years has been) maintained, or to which contributions are (or within the preceding six years have
been) required to be made by the Issuer, the Parent or any ERISA Affiliate or with respect to which
the Issuer, the Parent or any ERISA Affiliate may have any liability.

     “Plan Assets” has the meaning given to such term by Section 3(42) of ERISA and
regulations issued by the Department of Labor.

     “Pledge and Security Agreement” means that certain pledge and security agreement dated
as of the Closing Date made by the Parent to the Trustee.

     “Premium” means, with respect to any Note on any Redemption Date, any Redemption
Premium, if applicable, or, with respect to any Redemption Date, the portion of the Redemption

A-16

 

Price of the Notes being redeemed in excess of the Outstanding Principal Balance of the Notes
being redeemed.

     “Price” has the meaning set forth in Section 3.1 of the Note Purchase Agreement.

     “Principal Documents” means the 2nd Memorandum of Understanding, the Assignment
Agreement, the Extension Agreement, the GSK License Agreement, the MCC/TBC Agreement, the MCI
Product Agreement, the Sublicense and License Agreement, the Supply and Royalty Agreement, the
Three-Party Agreement, the Trademark License Agreement and the Understanding.

     “Private Placement Legend” has the meaning set forth in Section 2.2 of the Indenture.

     “Private Placement Memorandum” means the private placement memorandum of the Issuer
for the Original Class A Notes dated January 30, 2007.

     “Proceeds” shall have the meaning assigned to such term under the UCC and, in any
event, shall include (a) any and all proceeds of any guarantee, insurance or indemnity payable from
time to time to the Parent with respect to any of the Issuer Pledged Collateral, (b) any and all
payments (in any form whatsoever) made or due and payable from time to time to the Parent in
connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any
part of the Issuer Pledged Collateral by any Governmental Authority (or any Person acting under
color of Governmental Authority) and (c) any and all other amounts from time to time paid or
payable with respect to or in connection with any of the Issuer Pledged Collateral.

     “Purchase and Sale Agreement” means that certain purchase and sale agreement dated as
of the Closing Date between the Parent and the Issuer.

     “Purchased Assets” means the assets sold, transferred, conveyed, assigned, contributed
and granted by the Parent to the Issuer pursuant to the Purchase and Sale Agreement and the Bill of
Sale, which shall consist of the Parent’s right, title and interest in, to and under the Principal
Documents to (i) receive all Royalty Payments from GSK, (ii) receive the quarterly reports produced
by GSK pursuant to Section 11.03 of the GSK License Agreement in respect of sales of Argatroban in
the Territory, (iii) cause the Parent to audit the records of GSK in respect of such sales pursuant
to Section 11.01 of the GSK License Agreement and receive an audit report summarizing the results
of any such audit, (iv) make indemnification claims against GSK pursuant to Section 14.06 of the
GSK License Agreement and (v) enforce any rights granted under the Three-Party Agreement (but only
to the extent necessary to make effective and enforceable against the parties thereto the sale,
transfer, conveyance, assignment, contribution and granting by the Parent of the rights described
in clauses (i) through (iv) above), and the proceeds of and the rights to enforce each of the
foregoing.

     “Purchase Price” has the meaning set forth in Section 3.1 of the Note Purchase
Agreement.

     “Purchaser” has the meaning set forth in Section 1.1 of the Note Purchase Agreement.

     “QIB” means a qualified institutional buyer within the meaning of Rule 144A.

A-17

 

     “Receiver” means any Person or Persons appointed as (and any additional Person or
Persons appointed or substituted as) administrative receiver, receiver, manager or receiver and
manager.

     “Record Date” means, with respect to each Payment Date, the close of business on the
fifteenth day preceding such Payment Date and, with respect to the date on which any Direction is
to be given by the Noteholders, the close of business on the last Business Day prior to the
solicitation of such Direction.

     “Redemption” means any Optional Redemption and any other redemption of Notes described
in Section 3.10(c) of the Indenture.

     “Redemption Account” has the meaning set forth in Section 3.1(a) of the Indenture.

     “Redemption Date” means the date, which shall in each case be a Payment Date, on which
Notes are redeemed pursuant to a Redemption.

     “Redemption Premium” means, in the case of any Class B Notes or Refinancing Notes, the
amount, if any, specified in the Manager Resolution or indenture supplemental to the Indenture to
be paid in the event of a Redemption of such Class B Notes or Refinancing Notes separately from the
Redemption Price.

     “Redemption Price” means (a) in respect of an Optional Redemption of the Original
Class A Notes (i) on any Payment Date on or prior to December 30, 2007, the greater of (x) the
Outstanding Principal Balance of the Original Class A Notes being redeemed and (y) the present
value, discounted at the Applicable Treasury Rate plus 1.0%, of the principal payment amounts and
interest at the Stated Rate of Interest on the Outstanding Principal Balance of the Original Class
A Notes (assuming the principal balances are achieved at the times and in the amounts set forth in
the Base Case Amortization Schedule) plus, in each case, the accrued and unpaid interest to the
Redemption Date on the Original Class A Notes that are being redeemed or (ii) on any Payment Date
after December 30, 2007, an amount equal to the product of (x) the applicable Class A Redemption
Percentage as set forth below and (y) the Outstanding Principal Balance of the Original Class A
Notes that are being redeemed on such Payment Date, plus the accrued and unpaid interest to the
Redemption Date on the Original Class A Notes that are being redeemed:

	 	 	 	 	 
	 	 	Class A Redemption
	Payment Dates Between Indicated Payment Dates	 	Percentage
	From March 30, 2008 to and including December
30, 2008
	 	 	106.00	%
	From March 30, 2009 to and including December
30, 2009
	 	 	103.00	%
	From March 30, 2010 and thereafter
	 	 	100.00	%

and (b) in respect of any Class B Notes or Refinancing Notes, the redemption price, if any, plus
the accrued and unpaid interest to the Redemption Date on the Class B Notes or Refinancing Notes,
as the case may be, established by or pursuant to a Manager Resolution or in any indenture
supplemental to the Indenture providing for the issuance of such Notes or designated as such in the
form of such Notes (any such Redemption Price in respect of any Class B Notes or

A-18

 

Refinancing Notes may include a Redemption Premium, and such Manager Resolution or indenture
supplemental to the Indenture may specify a separate Redemption Premium).

     “Reference Date” means, with respect to each Interest Accrual Period, the day that is
two Business Days prior to the Payment Date on which such Interest Accrual Period commences;
provided, however, that the Reference Date with respect to the initial Interest
Accrual Period means the date that is two Business Days prior to the Closing Date (or, with respect
to any Class B Notes or any Refinancing Notes, the date that is two Business Days prior to the date
of issuance of such Class B Notes or Refinancing Notes).

     “Refinancing” has the meaning set forth in Section 2.15(a) of the Indenture.

     “Refinancing Date” means the date, which shall in each case be a Payment Date, on
which the Original Class A Notes, the Refinancing Notes, if any, or the Notes of any other class
are redeemed in whole, in each case with the proceeds of Refinancing Notes as provided in Section
2.15 of the Indenture.

     “Refinancing Expenses” means all Transaction Expenses incurred in connection with an
offering and issuance of Refinancing Notes.

     “Refinancing Notes” means any class of Notes issued by the Issuer under the Indenture
at any time and from time to time after the Closing Date pursuant to Section 2.15 of the Indenture,
the proceeds of which are used to repay all of the Outstanding Principal Balance of a class of
Notes.

     “Register” has the meaning set forth in Section 2.3(a) of the Indenture.

     “Registrar” has the meaning set forth in Section 2.3(a) of the Indenture.

     “Regulation S” means Regulation S under the Securities Act.

     “Regulation S Global Note Exchange Date” means the date of exchange of any Temporary
Regulation S Global Note for any Permanent Regulation S Global Note, which date shall be 40 days
after the Closing Date (or, with respect to any Class B Notes or any Refinancing Notes, 40 days
after the date of issuance of such Class B Notes or Refinancing Notes).

     “Regulation S Global Notes” has the meaning set forth in Section 2.1(b) of the
Indenture.

     “Relevant Calculation Date” has the meaning set forth in Section 3.5(a) of the
Indenture.

     “Relevant Information” means any information provided to the Trustee, the Calculation
Agent or the Paying Agent in writing by any Service Provider retained from time to time by the
Issuer pursuant to the Transaction Documents.

     “Remaining Weighted Average Life” means, with respect to the Original Class A Notes on
any Redemption Date, (a) the sum of the products of (i) each principal payment amount on the
Original Class A Notes payable on each subsequent Payment Date (assuming the principal balances are
achieved at the times and in the amounts set forth in the Base Case Amortization

A-19

 

Schedule) multiplied by (ii) the number of days remaining from the applicable Redemption Date
until such subsequent Payment Date divided by (b) the Outstanding Principal Balance of the Original
Class A Notes on such Redemption Date.

     “Resale Restriction Termination Date” has the meaning set forth in the Private
Placement Legend.

     “Responsible Officer” means (a) with respect to the Trustee, any officer within the
Corporate Trust Office, including any principal, vice president, managing director, director,
manager, associate or other officer of the Trustee customarily performing functions similar to
those performed by any of the above-designated officers and also, with respect to a particular
matter, any other officer to whom such matter is referred because of such officer’s knowledge and
familiarity with the particular subject, (b) with respect to the Issuer, any officer of the Manager
or person designated by the board of directors of the Manager as a Responsible Officer for purposes
of the Transaction Documents, and (c) with respect to the Parent, an executive officer of the
Parent.

     “Royalty Payments” means all royalties and other income, payments and reimbursements
paid, owed, accrued or otherwise required to be paid by GSK to the Parent or the Issuer, as the
case may be, pursuant to, and subject to the terms and conditions of, the Principal Documents, and
any additional payments or consideration paid by GSK to the Parent or the Issuer, as the case may
be, in connection with any amendment, restatement, supplement, modification or waiver of any of the
Principal Documents. For the avoidance of doubt, Royalty Payments include any refunds of United
Kingdom income tax withheld by GSK, its agents and each of their successors in respect of any of
the foregoing.

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

     “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc., and any successor thereto or, if such division or its successor shall for any
reason no longer perform the functions of a securities rating agency, “S&P” shall be deemed
to refer to any other nationally recognized statistical rating organization (within the meaning
ascribed thereto by the Exchange Act) designated by the Issuer.

     “Sale Price” has the meaning set forth in Section 2.2(b) of the Purchase and Sale
Agreement.

     “SEC” means the U.S. Securities and Exchange Commission.

     “Secured Obligations” has the meaning set forth in the Granting Clause of the
Indenture.

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

     “Security Interest” means the security interest granted or expressed to be granted in
the Collateral pursuant to the Granting Clause of the Indenture and in the Issuer Pledged Equity
pursuant to the Pledge and Security Agreement.

     “Senior Claim” has the meaning set forth in Section 10.1(a) of the Indenture.

A-20

 

     “Senior Class” means (a) so long as any Class A Notes are Outstanding, the Class A
Notes, or (b) if no Class A Notes are Outstanding, the Class B Notes.

     “Senior Trustee” means the trustee of the Senior Class, which shall be (a) so long as
any Class A Notes are Outstanding, the Trustee acting at the Direction of the Noteholders of a
majority of the Outstanding Principal Balance of the Class A Notes, and (b) after the Class A Notes
have been repaid in full, and so long as any Class B Notes are Outstanding, the Trustee acting at
the Direction of the Noteholders of a majority of the Outstanding Principal Balance of the Class B
Notes.

     “Service Providers” means the Servicer, the Trustee, the Independent Member, the
Calculation Agent, the Paying Agent, the Registrar, the Operating Bank and any Person that becomes
the Servicer, the Trustee, the Independent Member, the Calculation Agent, the Paying Agent, the
Registrar or the Operating Bank in accordance with the terms of the applicable agreement and,
subject to the written approval of the Noteholders of a majority of the Outstanding Principal
Balance of the Senior Class of Notes, any other Person designated as a Service Provider by the
Issuer.

     “Servicer” means the Parent, acting in its capacity as servicer pursuant to the
Servicing Agreement (or any other Person appointed by the Issuer to succeed the Parent as such or
any successor thereto).

     “Servicer Information” means, with respect to any Calculation Date, the written
information provided by the Servicer under Section 4.1(c) of the Servicing Agreement with respect
to such Calculation Date.

     “Servicer Termination Event” means any one of the following events:

     (i) the Servicer shall fail to pay any amount when due under the Servicing Agreement
and such failure shall continue unremedied for five Business Days;

     (ii) the Servicer shall fail to deliver the Distribution Report and the other required
accompanying materials with respect to any Payment Date in accordance with the provisions of
Section 4.1(c)(i) of the Servicing Agreement within five Business Days of the date such
Distribution Report and the other required accompanying materials are required to be
delivered under Section 4.1(c)(i) of the Servicing Agreement;

     (iii) the Servicer shall fail to carry out its obligations under Section 4.1(c)(ii) of
the Servicing Agreement that shall have or reasonably be expected to have a material adverse
effect on the Noteholders;

     (iv) the Servicer shall fail to carry out its obligations under Section 4.1(c)(v) of
the Servicing Agreement in a commercially reasonable manner;

     (v) the Servicer shall fail to carry out its obligations under Section 4.1(c)(viii),
Section 4.1(c)(ix) or Section 4.1(c)(x) of the Servicing Agreement;

A-21

 

     (vi) the Servicer shall fail to observe or perform in any material respect any of the
covenants or agreements on the part of the Servicer contained in the Servicing Agreement
(other than for which provision is made in clauses (i) through (v) above) and such failure
shall continue unremedied for a period of 30 days after the date on which (A) the Servicer
shall have obtained knowledge of such failure or (B) written notice of such failure
requiring the same to be remedied shall have been given to the Servicer by the Trustee, in
each case that continues to materially adversely affect the Noteholders for such period;

     (vii) a court having jurisdiction in the premises enters a decree or order for (i)
relief in respect of the Servicer under any Applicable Law relating to bankruptcy,
insolvency, receivership, winding-up, liquidation, reorganization, examination, relief of
debtors or other similar law in effect now or after the Closing Date, (ii) appointment of a
receiver, liquidator, examiner, assignee, custodian, trustee, sequestrator or similar
official of the Servicer or (iii) the winding-up or liquidation of the affairs of the
Servicer and, in each case, such decree or order shall remain unstayed or such writ or other
process shall not have been stayed or dismissed within 90 days from entry thereof;

     (viii) the Servicer (i) commences a voluntary case under any Applicable Law relating to
bankruptcy, insolvency, receivership, winding-up, liquidation, reorganization, examination,
relief of debtors or other similar law in effect now or after the Closing Date, or consents
to the entry of an order for relief in any involuntary case under any such law, (ii)
consents to the appointment of or taking possession by a receiver, liquidator, examiner,
assignee, custodian, trustee, sequestrator or similar official of the Servicer or for all or
substantially all of the property and assets of the Servicer or (iii) effects any general
assignment for the benefit of creditors;

     (ix) the Servicer’s business activities are terminated by any Governmental Authority;

     (x) a material adverse change occurs in the financial condition or operations of the
Servicer that is reasonably likely to have a Material Adverse Effect;

     (xi) an Event of Default shall have occurred, other than an Event of Default solely
caused by the Trustee, the Calculation Agent, the Paying Agent or the Registrar failing to
perform any of its respective obligations under the Indenture or any other Transaction
Document; or

     (xii) the Parent sells, transfers, conveys, assigns, contributes or grants a majority
of the Capital Securities of the Issuer to another Person or Persons.

     “Services” means the services to be performed by the Servicer pursuant to the
Servicing Agreement.

     “Servicing Agreement” means the servicing agreement dated as of the Closing Date
between the Issuer and the Parent.

     “Servicing Fee” has the meaning set forth in Section 2.1 of the Servicing Agreement.

A-22

 

     “Shortfall” has the meaning set forth in Section 3.5(a)(x) of the Indenture.

     “Significant Subsidiary” has the meaning set forth in the Convertible Notes Indenture.

     “Significant Subsidiary Period” means any period of time during which (i) the Issuer
is a Significant Subsidiary (as evidenced in accordance with Section 6.3(e)(iv) of the Purchase and
Sale Agreement), (ii) the notes issued under the Convertible Notes Indenture are outstanding in an
aggregate principal amount greater than or equal to $10,000,000 (as evidenced in accordance with
Section 6.3(e)(v) of the Purchase and Sale Agreement), (iii) no declaration of acceleration or
automatic acceleration has been effected pursuant to Section 6.02 of the Convertible Notes
Indenture (as evidenced in accordance with Section 6.3(e)(vi) of the Purchase and Sale Agreement)
and (iv) the Parent has not become subject to the exercise of any remedy to collect the payment of
the principal, the premium, if any, and any accrued cash interest on the notes issued under the
Convertible Notes Indenture (as evidenced in accordance with Section 6.3(e)(vii) of the Purchase
and Sale Agreement).

     “Stated Rate of Interest” means, with respect to any class of the Notes for any
Interest Accrual Period, the interest rate set forth in such class of Notes for such Interest
Accrual Period.

     “Sublicense and License Agreement” means that certain Sublicense and License Agreement
dated as of May 27, 1993 between Genentech and the Parent.

     “Subordinated Claim” has the meaning set forth in Section 10.1(a) of the Indenture.

     “Subsidiary” means, with respect to any Person, any other Person of which more than
50% of the outstanding Voting Securities of such other Person (irrespective of whether at the time
Capital Securities of any other class or classes of such other Person shall or might have voting
power upon the occurrence of any contingency) is at the time directly or indirectly owned or
controlled by such Person, by such Person and one or more other Subsidiaries of such Person or by
one or more other Subsidiaries of such Person.

     “Supply and Royalty Agreement” means that certain Supply and Royalty Agreement dated
August 5, 1997 between Mitsubishi and GSK.

     “Taxes” means any and all taxes, fees, levies, duties, tariffs, imposts and other
charges of any kind (together with any and all interest, penalties, loss, damage, liability,
expense, additions to tax and additional amounts or costs incurred or imposed with respect thereto)
now or hereafter imposed, levied, collected, withheld or otherwise assessed by the U.S. or by any
state, local, foreign or other Governmental Authority (or any subdivision or agency thereof) or
other taxing authority, including taxes or other charges on or with respect to income, franchises,
windfall or other profits, gross receipts, property, sales, use, capital stock, payroll,
employment, social security, workers’ compensation, unemployment compensation or net worth and
similar charges and taxes or other charges in the nature of excise, deduction, withholding, ad
valorem, stamp, transfer, value added, taxes on goods and services, gains taxes, license,
registration and documentation fees, customs duties, tariffs and similar charges.

     “Temporary Regulation S Global Note” has the meaning set forth in Section 2.1(b) of
the Indenture.

A-23

 

     “Territory” has the meaning set forth in the GSK License Agreement.

     “Three-Party Agreement” means that certain Mitsubishi-TBC-SB Agreement dated as of
August 5, 1997 among Mitsubishi, GSK and the Parent.

     “Trademark License Agreement” means that certain Trademark License Agreement dated as
of April 20, 1994 between Mitsubishi and the Parent.

     “Transaction Documents” means the Indenture, the Notes, the Purchase and Sale
Agreement, the Bill of Sale, the Servicing Agreement, the Pledge and Security Agreement and the
Note Purchase Agreements, and each other agreement pursuant to which the Trustee (or its agent) is
granted a Lien to secure the obligations under the Indenture or the Notes.

     “Transaction Expenses” means the out-of-pocket expenses payable by the Issuer in
connection with (a) the issuance of the Original Class A Notes, including placement fees, any
initial fees payable to Service Providers and the fees and expenses of Pillsbury Winthrop Shaw
Pittman LLP, counsel to the Noteholders in connection with the offering and issuance of the
Original Class A Notes, as set forth in the Note Purchase Agreements and (b) the offering and
issuance of any Class B Notes or any Refinancing Notes, to the extent specified in the Manager
Resolution authorizing such offering and issuance.

     “Trustee” means U.S. Bank National Association, a national banking association, as
initial trustee of the Notes under the Indenture, and any successor appointed in accordance with
the terms of the Indenture.

     “Trustee Closing Account” means the account of the Issuer maintained with the Trustee
at U.S. Bank, ABA No. 091000022, Account No. 108729000, Ref. Argatroban Royalty Collection Acct.,
Attention: Josh Tripi.

     “Trust Indenture Act” means the U.S. Trust Indenture Act of 1939, as amended.

     “UCC” means the Uniform Commercial Code as in effect from time to time in the State of
New York; provided, that, if, with respect to any financing statement or by reason of any
provisions of law, the perfection or the effect of perfection or non-perfection of the Liens
granted to the Trustee pursuant to the applicable Transaction Document is governed by the Uniform
Commercial Code as in effect in a jurisdiction of the United States other than the State of New
York, then “UCC” means the Uniform Commercial Code as in effect from time to time in such
other jurisdiction for purposes of the provisions of each Transaction Document and any financing
statement relating to such perfection or effect of perfection or non-perfection.

     “Understanding” means that certain Understanding dated as of February 1, 1998 among
Genentech, Mitsubishi and the Parent.

     “U.K. Tax Confirmation” means a confirmation from HMRC that, under the U.K.-U.S. Tax
Treaty, either (i) no United Kingdom income tax is required to be withheld at source on the
royalties in respect of sales of Argatroban in the Territory or (ii) if United Kingdom income tax
is required to be withheld at source on such royalties, the Parent or the Issuer is entitled to
repayment from HMRC of such tax.

A-24

 

     “U.K.-U.S. Tax Treaty” means the income tax treaty in force between the United Kingdom
and the United States on the Closing Date.

     “U.S.” or “United States” means the United States of America, its 50 states,
each territory thereof and the District of Columbia.

     “U.S. Person” means a U.S. person within the meaning of Regulation S.

     “U.S. Treasury” means the U.S. Department of the Treasury.

     “Voluntary Bankruptcy” means, with respect to the Issuer or the Parent, (i) an
admission in writing by the Issuer or the Parent, respectively, of its inability to pay its debts
generally or a general assignment by the Issuer or the Parent, respectively, for the benefit of
creditors, (ii) the filing of any petition or answer by the Issuer or the Parent, respectively,
seeking to adjudicate itself as bankrupt or insolvent, or seeking for itself any liquidation,
winding-up, reorganization, arrangement, adjustment, protection, relief or composition of the
Issuer or the Parent, respectively, or its debts under any law relating to bankruptcy, insolvency,
receivership, winding-up, liquidation, reorganization, examination, relief of debtors or other
similar law now or hereafter in effect, or seeking, consenting to or acquiescing in the entry of an
order for relief in any case under any such law, or the appointment of or taking possession by a
receiver, trustee, custodian, liquidator, examiner, assignee, sequestrator or other similar
official for the Issuer or the Parent, respectively, or for any substantial part of its property,
or (iii) corporate or other entity action taken by the Issuer or the Parent, respectively, to
authorize any of the actions set forth above; provided, however, that none of the
foregoing shall constitute a Voluntary Bankruptcy in respect of the Issuer to the extent one or
more Noteholders cause or join in any such action prior to such time as the Parent has paid in full
its obligations under the Convertible Notes Indenture (as evidenced in accordance with Section
6.3(e)(v) of the Purchase and Sale Agreement).

     “Voting Securities” means, with respect to any Person, Capital Securities of any class
or kind ordinarily having the power to vote for the election of directors, managers or other voting
members of the governing body of such Person.

A-25

 

EXHIBIT
A

FORM
OF ORIGINAL CLASS A NOTE

[INSERT THE APPLICABLE LEGEND(S) SET FORTH IN SECTION 2.2]

ARGATROBAN
ROYALTY SUB LLC

Argatroban
PhaRMASM
Secured 12% Notes Due 2014

Class A

	 	 	 
	No. ___

	 	CUSIP: ___

U.S.$60,000,000

     ARGATROBAN ROYALTY SUB LLC, a limited liability company organized under the laws of the State
of Delaware (herein referred to as the “Issuer”), for value received, hereby promises to
pay to CEDE & CO., or registered assigns, the principal amount set forth on Schedule I
hereto on or before September 30, 2014 (the “Final Legal Maturity Date”) and to pay
interest quarterly in arrears on the Outstanding Principal Balance hereof at a rate per annum equal
to 12% (the “Stated Rate of Interest”), from the date hereof until the Outstanding
Principal Balance hereof is paid or duly provided for, which interest shall be due and payable on
each Payment Date; provided, that, with respect to any Payment Date (other than the Final
Legal Maturity Date or any Redemption Date), any such interest in excess of the portion of the
Available Collections Amount available to pay such interest on such Payment Date shall be payable
in full not later than the immediately succeeding Payment Date (together with Additional Interest
on the amount of unpaid interest from the Payment Date on which it was due until the date on which
it is paid, compounded quarterly on each Payment Date). Interest on this Note in each Interest
Accrual Period shall be calculated on the basis of a 360-day year consisting of twelve 30-day
months. If this Note is issued in the form of a Global Note, in accordance with the requirements
of DTC, the Issuer will cause the Trustee to authenticate an additional Note or additional Notes in
the appropriate principal amount such that neither this Note nor any other such Note may exceed an
aggregate principal amount of U.S.$500,000,000 at any time.

     This Note is a duly authorized issue of Notes of the Issuer, designated as its “Argatroban
PhaRMASM Secured 12% Notes Due 2014”, issued under the Indenture dated as of February 6,
2007 (as amended, restated, supplemented or otherwise modified from time to time in accordance with
the terms thereof, the “Indenture”), between the Issuer and U.S. Bank National Association,
as trustee (including any successor appointed in accordance with the terms of the Indenture, the
“Trustee”). The Indenture also provides for the issuance of Class B Notes. All
capitalized terms used in this Note and not defined herein shall have the respective meanings
assigned to such terms in the Indenture. Reference is made to the Indenture and all indentures
supplemental thereto for a statement of the respective rights and obligations thereunder of the
Issuer, the Trustee and the Noteholders. This Note is subject to all terms of the Indenture.

     The Issuer will pay the Outstanding Principal Balance of this Note on or prior to the Final
Legal Maturity Date on the Payment Dates specified in the Indenture, subject to the availability

A-1

 

of the Available Collections Amount therefor after making payments entitled to priority under
Section 3.7 of the Indenture.

     The indebtedness evidenced by the Original Class A Notes is, to the extent and in the manner
provided in the Indenture, senior in right of payment to the right of payment of the Class B Notes,
and this Note is issued subject to such provisions. The maturity of this Note is subject to
acceleration during the Non-Significant Subsidiary Period upon the occurrence and during the
continuance of the Events of Default specified in the Indenture.

     The Issuer may redeem all or part of the Outstanding Principal Balance of this Note prior to
the Final Legal Maturity Date on the Payment Dates, in the amounts and under the circumstances
specified in the Indenture.

     Any amount of Premium or interest on this Note that is not paid when due shall, to the fullest
extent permitted by Applicable Law, bear interest (“Additional Interest”) at an interest
rate per annum equal to the Stated Rate of Interest from the date when due until such amount is
paid or duly provided for, compounded quarterly and payable on the next succeeding Payment Date,
subject to the availability of the Available Collections Amount therefor after making payments
entitled to priority under Section 3.7 of the Indenture.

     This Note is and will be secured by the Collateral pledged as security therefor as provided in
the Indenture.

     Subject to and in accordance with the terms of the Indenture, there will be distributed
quarterly from the Collection Account on each Payment Date commencing on March 30, 2007, to the
Person in whose name this Note is registered at the close of business on the Record Date with
respect to such Payment Date, in the manner specified in Section 3.7 of the Indenture, such
Person’s pro rata share (based on the aggregate percentage of the Outstanding Principal Balance of
the Original Class A Notes held by such Person) of the aggregate amount distributable to all
Noteholders of Original Class A Notes on such Payment Date.

     All amounts payable in respect of this Note shall be payable in U.S. dollars in the manner
provided in the Indenture to the Noteholder hereof on the Record Date relating to such payment.
The final payment with respect to this Note, however, shall be made only upon presentation and
surrender of this Note by the Noteholder or its agent at the Corporate Trust Office or agency of
the Trustee or Paying Agent. At such time, if any, as this Note is issued in the form of one or
more Definitive Notes, payments on a Payment Date shall be made by check mailed to each Noteholder
of such a Definitive Note on the applicable Record Date at its address appearing on the Register
maintained with respect to the Original Class A Notes. Alternatively, upon application in writing
to the Trustee or other Paying Agent, not later than the applicable Record Date, by a Noteholder,
any such payments shall be made by wire transfer to an account designated by such Noteholder at a
financial institution in New York City. The final payment with respect to any such Definitive
Note, however, shall be made only upon presentation and surrender of such Definitive Note by the
Noteholder or its agent at the Corporate Trust Office or agency of the Trustee or Paying Agent.
Notwithstanding the foregoing, payments in respect of this Note issued in the form of a Global Note
(including principal, Premium, if any, and interest) shall be made by wire transfer of immediately
available funds to the account specified by DTC.

A-2

 

Any reduction in the Outstanding Principal Balance of this Note (or any one or more
predecessor Original Class A Notes) effected by any payments made on any Payment Date shall be
binding upon all future Noteholders of this Note and of any Original Class A Note issued upon the
registration of transfer of, in exchange or in lieu of or upon the refinancing of this Note,
whether or not noted hereon.

     The Noteholder of this Note agrees, by acceptance hereof, to pay over to the Trustee any money
(including principal, Premium, if any, and interest) paid to it in respect of this Note in the
event that the Trustee, acting in good faith, determines subsequently that such monies were not
paid in accordance with the priority of payment provisions of the Indenture or as a result of any
other mistake of fact or law on the part of the Trustee in making such payment.

     This Note is issuable only in registered form. A Noteholder or Beneficial Holder may transfer
this Note or a Beneficial Interest herein only by delivery of a written application to the
Registrar stating the name of the proposed transferee, a Confidentiality Agreement duly executed
and delivered to the Registrar by such transferee and otherwise complying with the terms of the
Indenture. No such transfer shall be effected until, and such transferee shall succeed to the
rights of a Noteholder only upon, final acceptance and registration of the transfer by the
Registrar in the Register. When this Note is presented to the Registrar with a request to register
the transfer or to exchange it for an equal principal amount of Original Class A Notes of other
authorized denominations, the Registrar shall register the transfer or make the exchange as
requested if its requirements for such transactions are met (including, in the case of a transfer,
that such Note is duly endorsed or accompanied by a written instrument of transfer in form
satisfactory to the Trustee and Registrar duly executed by the Noteholder thereof or by an attorney
who is authorized in writing to act on behalf of the Noteholder and that the transferee has
executed and delivered to the Registrar a Confidentiality Agreement). No service charge shall be
made for any registration of transfer or exchange of this Note, but the party requesting such new
Original Class A Note or Original Class A Notes may be required to pay a sum sufficient to cover
any transfer tax or similar governmental charge payable in connection therewith. This Note may not
be transferred to a company ranked in the top 20 pharmaceutical companies in the United States
based on IMS-reported pharmaceutical sales for the calendar year preceding the proposed transfer or
an Affiliate of any such entity.

     Prior to the registration of transfer of this Note, the Issuer and the Trustee may deem and
treat the Person in whose name this Note (as of the day of determination or as of such other date
as may be specified in the Indenture) is registered as the absolute owner and Noteholder hereof for
the purpose of receiving payment of all amounts payable with respect to this Note and for all other
purposes, and neither the Issuer nor the Trustee shall be affected by notice to the contrary.

     The Indenture permits the amendment or modification of the Indenture and the Original Class A
Notes by the Issuer with the consent of the Noteholders of a majority of the Outstanding Principal
Balance of all Notes on the date of any vote or act of such Noteholders (voting or acting as a
single class). However, no amendment or modification of the Indenture or the Original Class A
Notes may, without the consent of Noteholders of 100% of the Outstanding Principal Balance of the
class of Notes affected thereby, (i) reduce the percentage of Noteholders of any such class of
Notes required to take or approve any action under the Indenture, (ii) reduce the amount or change
the time of payment of any amount owing or payable with respect to any

A-3

 

such class of Notes or change the rate of interest or change the manner of calculation of
interest payable with respect to any such class of Notes, (iii) alter or modify the provisions with
respect to the Collateral for the Notes or the manner of payment or the order of priorities in
which payments or distributions under the Indenture will be made as between the Noteholders of such
Notes and the Issuer or as among the Noteholders or (iv) consent to any assignment of the Issuer’s
rights to a party other than the Trustee for the benefit of the Noteholders. Any such amendment or
modification shall be binding on every Noteholder hereof, whether or not notation thereof is made
upon this Note.

     The subordination provisions contained in Article X of the Indenture may not be amended or
modified without the consent of Noteholders of 100% of the Outstanding Principal Balance of the
class of Notes affected thereby.

     The Indenture also contains provisions permitting the Noteholders of a majority of the
Outstanding Principal Balance of the Senior Class of Notes, on behalf of the Noteholders of all of
the Original Class A Notes, to waive compliance by the Issuer with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences. Any such consent
or waiver shall be conclusive and binding upon all present and future Noteholders of this Note and
of any Original Class A Note issued upon the registration of transfer of, in exchange or in lieu of
or upon the refinancing of this Note, whether or not notation of such consent or waiver is made
upon this Note.

     The Issuer is permitted by the Indenture, under certain circumstances, to merge or
consolidate, subject to the rights of the Trustee and the Noteholders of Class A Notes under the
Indenture.

     The Original Class A Notes are issuable only in registered form in denominations as provided
in the Indenture, subject to certain limitations therein set forth.

     THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL SUBSTANTIVE LAWS
OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE RULES THEREOF RELATING TO CONFLICTS OF LAW OTHER
THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, AND THE OBLIGATIONS,
RIGHTS AND REMEDIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     Unless the certificate of authentication hereon has been executed by the Trustee whose name
appears below by manual or facsimile signature, this Note shall not be entitled to any benefit
under the Indenture, or be valid or obligatory for any purpose.

A-4

 

     IN WITNESS WHEREOF, the Issuer has caused this Note to be signed manually or by facsimile by
its duly authorized Manager.

	 	 	 	 	 
	Date: February 6, 2007 	ARGATROBAN ROYALTY SUB LLC

 	 
	 	By:  	Encysive Pharmaceuticals Inc., its Manager
 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This Note is one of the Argatroban PhaRMASM Secured 12% Notes Due 2014 designated
above and referred to in the within-mentioned indenture.

	 	 	 	 	 
	Date: February 6, 2007 	U.S. BANK NATIONAL ASSOCIATION,

as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

A-5

 

FORM
OF TRANSFER NOTICE

     FOR VALUE RECEIVED the undersigned registered holder hereby sell(s), assign(s) and transfer(s)
unto

Insert Taxpayer Identification No.                                         

 

(Please print or typewrite name and address including zip code of assignee)

the within Note and all rights thereunder, hereby irrevocably constituting and appointing
                                                             attorney to transfer said Note on the books of the Issuer with full power of
substitution in the premises.

	 	 	 	 	 
	 

	 	 	 	 
	Date

	 	 	 	Signature of Transferor

NOTE: The signature to this assignment must correspond with the name as written upon the face of
the within-mentioned instrument in every particular, without alteration or any change whatsoever.

[THE FOLLOWING PROVISIONS TO BE INCLUDED ON ALL NOTES]

     In connection with any transfer of the within-mentioned Note, the undersigned confirms without
utilizing any general solicitation or general advertising that:

[Check One]

o (a) the within-mentioned Note is being transferred in compliance with the exemption from
registration under the Securities Act provided by Rule 144A thereunder

o (b) the within-mentioned Note is being transferred other than in accordance with clause (a) above
and documents are being furnished which comply with the conditions of transfer set forth in the
within-mentioned Note and the Indenture

If neither of the foregoing boxes is checked, the Trustee or other Registrar shall not be obligated
to register the within-mentioned Note in the name of any Person other than the Noteholder hereof
unless and until the conditions to any such transfer of registration set forth herein and in
Section 2.11 of the Indenture shall have been satisfied.

	 	 	 	 	 
	 

	 	 	 	 
	Date

	 	 	 	NOTICE: The signature to this assignment must correspond with the name as written upon the
face of the within-mentioned instrument in every particular, without alteration or any change
whatsoever.

A-6

 

TO BE COMPLETED BY PURCHASER IF CLAUSE (a) ABOVE IS CHECKED.

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

Dated:                     

	 	 	 
	 

	 	 
	 

	 	Executive Officer

A-7

 

SCHEDULE I

ARGATROBAN ROYALTY SUB LLC

Argatroban PhaRMASM Secured 12% Notes Due 2014

No. ___

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

A-8

 

EXHIBIT B

FORM OF RESALE CONFIDENTIALITY AGREEMENT

No.                      

ARGATROBAN ROYALTY SUB LLC

c/o Encysive Pharmaceuticals Inc.

4848 Loop Central Drive, Suite 700

Houston, Texas 77081

__________, 20__

RESALE CONFIDENTIALITY AGREEMENT

     In connection with our possible interest in the purchase of the Argatroban Pharmaceutical
Royalty Monetization AssetSM (PhaRMASM) Secured 12% Notes due 2014 (the
“Notes”) issued by Argatroban Royalty Sub LLC, a Delaware limited liability company (the “Company”)
(the “Transaction”), we have requested a copy of the Private Placement Memorandum, dated January
30, 2007, relating to the Notes (the “Private Placement Memorandum”). In addition to receiving the
Private Placement Memorandum, we may also request that you or your directors, officers, managers,
members, partners, employees, affiliates, assigns, representatives (including, without limitation,
financial advisors, attorneys and accountants), investors, agents or similar persons (collectively,
“Your Representatives”) furnish us or our directors, officers, managers, members, partners,
employees, affiliates, assigns, representatives (including, without limitation, financial advisors,
attorneys and accountants), investors, agents or similar persons (collectively, “Our
Representatives”) with certain information relating to the Company, the Transaction and the rights
acquired by the Company from Encysive Pharmaceuticals Inc. All such information (whether written
or oral, and whether tangible or electronic) furnished on or after the date hereof by you or Your
Representatives to us or Our Representatives, including, without limitation, the Private Placement
Memorandum, and any materials containing, based on or derived from any such information (including
any financial models or other analyses, compilations, forecasts, studies or other documents based
thereon) prepared by us or Our Representatives in connection with our or Our Representatives’
review of, or our interest in, the Transaction, is hereinafter referred to as the “Information”.
The term Information will not, however, include information that (i) is already known by us at the
time such information is disclosed unless such information was disclosed to us under a
confidentiality agreement with you that was entered into in connection with our earlier
consideration of the Notes, (ii) is or thereafter becomes available in the public domain, other
than by breach by us or Our Representatives of our obligations hereunder, (iii) is obtainable by us
from another source without breach of such source’s obligations of confidentiality to you or (iv)
is independently developed by our Representatives who have not had access to such information.

     As a condition to receiving the Information, we hereby agree as follows:

     1. We and Our Representatives hereby agree (i) to keep the Information confidential, (ii) that
the Information will be used solely for the purpose of evaluating, entering into, monitoring or
enforcing the Transaction and (iii) not to (except as required by applicable law,

B-1

 

rule, regulation or legal process or pursuant to requests of governmental authorities or
regulatory agencies having oversight over us or Our Representatives, and only after compliance with
paragraph 3 below), without your prior written consent, disclose any Information in any manner
whatsoever; provided, however, that we may reveal the Information to (a) Our
Representatives who need to know the Information for the purpose of evaluating, entering into,
monitoring or enforcing the Transaction or (b) third parties in order to comply with any applicable
law, rule, regulation or legal process or pursuant to requests of governmental authorities or
regulatory agencies having oversight over us or Our Representatives, provided, that all of
such persons listed in clause (a) above shall agree to keep such information confidential, and only
to use such information, on reasonable and customary terms that are substantially the same as the
terms we are subject to, and, provided, further, that we shall be wholly
responsible for the full compliance of such confidentiality agreement by any of the persons listed
in clause (a) above to which we disclosed Information. Notwithstanding and without limitation of
the foregoing, we and Our Representatives agree not to reveal Information to advisors who are
principally engaged in the business of investment banking, capital markets or securitization of
financial assets without prior written notice to you.

     2. We and Our Representatives agree, whether or not the Transaction is consummated, not to
(except as required by applicable law, rule, regulation or legal process or pursuant to requests of
governmental authorities or regulatory agencies having oversight over us or Our Representatives,
and only after compliance with paragraph 3 below), without your prior written consent, disclose to
any person the fact that the Information or the Transaction exists or has been made available, that
we are considering the Transaction, or that discussions or negotiations are taking or have taken
place concerning the Transaction or any term, condition or other fact relating to the Transaction
or such discussions or negotiations, including, without limitation, the status thereof.

     3. In the event that we or any of Our Representatives are required by applicable law, rule,
regulation or legal process or pursuant to requests of governmental authorities or regulatory
agencies having oversight over us or Our Representatives to disclose any of the Information, we
agree to use commercially reasonable efforts to notify you promptly (unless such notice is not
permitted by applicable law, rule or regulation) so that you may seek, at your own expense, a
protective order or other appropriate remedy or, in your sole discretion, waive compliance with the
terms of this Resale Confidentiality Agreement. In the event that no such protective order or
other remedy is obtained, or that you do not waive compliance with the terms of this Resale
Confidentiality Agreement, we agree to furnish only that portion of the Information that we are
advised by counsel (which may be internal counsel) is legally required and will exercise all
commercially reasonable efforts to obtain reliable assurance that confidential treatment will be
accorded the Information.

     4. If we determine not to proceed with the Transaction or we cease to have an interest arising
from the Transaction, we will promptly inform you of that decision or event and, in that case, and
at any time upon your request or the request of any of Your Representatives, we and Our
Representatives agree to (i) promptly deliver to you all copies of the Information in our
possession (except as described in the following proviso), (ii) promptly destroy all copies of any
written Information (whether in tangible or electronic form, or otherwise) that we and Our
Representatives have created, including, without limitation, any notes we have taken on any

B-2

 

discussions with you or Your Representatives, and upon your request such destruction shall be
certified in writing (including via email) to you by an authorized officer supervising such
destruction (provided in each case that an appropriate person within our organization may retain
one copy of the Information, subject to the provisions of this Resale Confidentiality Agreement, if
required to comply with internal record retention policies or regulatory considerations, in which
case, regardless of paragraph 14 below, the confidentiality provisions of this Resale
Confidentiality Agreement will continue to apply to such Information for so long as it is retained
by such person or any other of Our Representatives) and (iii) certify that clauses (i) and (ii)
above have been complied with. Any oral Information will continue to be subject to the terms of
this Resale Confidentiality Agreement.

     5. We acknowledge that you have not updated, and have no obligation to update, the Private
Placement Memorandum in any respect for events, developments or circumstances (including, without
limitation, the level of royalty payments for Argatroban or the sales of Argatroban compared to the
sales forecasts contained in the Independent Consultant’s Report included as Appendix A to the
Private Placement Memorandum). We further acknowledge that neither you nor any of Your
Representatives, nor any of your or their respective officers, directors, managers, members,
partners, employees, agents or controlling persons within the meaning of Section 20 of the
Securities Exchange Act of 1934, as amended, makes any express or implied representation or
warranty as to the accuracy or completeness of the Information, and we agree that no such person
will have any liability relating to the Information or for any errors therein or omissions
therefrom. We further agree that we are not entitled to rely on the accuracy or completeness of
the Information.

     6. We acknowledge that we are aware of the restrictions imposed by the United States
securities laws on the purchase or sale of securities of an issuer or an affiliate or controlling
person of the issuer by any person who has received material, non-public information from the
issuer or an affiliate or controlling person of the issuer or from a person owing a duty to any of
the foregoing, and on the communication of such information to any other person when it is
reasonably foreseeable that such other person is likely to purchase or sell such securities in
reliance upon such information.

     7. We represent that we maintain effective internal procedures with respect to maintaining the
confidentiality and use of the Information. We further represent and warrant that (i) we are a
qualified institutional buyer (as defined in Rule 144A under the Securities Act of 1933, as
amended) or an institutional accredited investor (as defined in subparagraph (a) (1), (2), (3) or
(7) of Rule 501 under the Securities Act of 1933, as amended) and (ii) we are not and will not be
so long as we hold any Notes, and are not an affiliate of an entity that is or will be so long as
we hold any Notes, a company ranked in the top 20 pharmaceutical companies in the United States
based on IMS-reported pharmaceutical sales for the calendar year preceding the proposed purchase of
the Notes.

     8. We acknowledge that remedies at law may be inadequate to protect you against any actual or
threatened breach of this Resale Confidentiality Agreement by us or Our Representatives, and,
without prejudice to any other rights and remedies otherwise available to you, we agree to permit
you to seek the granting of injunctive relief in your favor without proof of actual damages.

B-3

 

     9. We acknowledge and agree that each of Encysive Pharmaceuticals Inc. and GlaxoSmithKline plc
is a third party beneficiary of this Resale Confidentiality Agreement and shall have the right to
enforce any provision of this Resale Confidentiality Agreement.

     10. We agree that no failure or delay by you in exercising any right, power or privilege
hereunder will operate as a waiver thereof, nor will any single or partial exercise thereof
preclude any other or further exercise thereof or the exercise of any right, power or privilege
hereunder.

     11. This Resale Confidentiality Agreement shall be governed by, and construed, interpreted and
enforced in accordance with, the laws of the State of New York, without giving effect to the
principles of conflicts of law thereof (other than the provisions of Section 5-1401 of the General
Obligations Law of the State of New York).

     12. This Resale Confidentiality Agreement contains the entire agreement between you and us
concerning the confidentiality of the Information, and no modifications of this Resale
Confidentiality Agreement or waiver of the terms and conditions hereof will be binding upon you or
us, unless approved in writing by each of you and us.

     13. This Resale Confidentiality Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns.

     14. This Resale Confidentiality Agreement will terminate (i) if we do not proceed with the
Transaction, 60 months after the date hereof, and (ii) if we do proceed with the Transaction, 60
months from the date we cease to have an interest arising from the Transaction, whether through a
sale of our interest, the maturity or repayment of our interest or otherwise.

     15. If we propose to purchase, transfer, sell or otherwise dispose of any of our interest at
any time, we agree to (i) abide by any transfer restrictions described in the Private Placement
Memorandum, (ii) inform any proposed transferee of such interest of any such transfer restrictions,
including any requirement that such proposed transferee enter into a resale confidentiality
agreement with the Company, and (iii) not furnish any Information to such proposed transferee. We
acknowledge that the servicer for the Transaction shall be responsible for the delivery of all
Information to any such prospective transferee following execution by such prospective transferee
of an appropriate resale confidentiality agreement with the Company.

     16. This Resale Confidentiality Agreement may be executed in any number of counterparts, each
of which so executed shall be deemed to be an original, but all of such counterparts shall together
constitute but one and the same instrument. Any counterpart may be executed by facsimile signature
and such facsimile signature shall be deemed an original.

     17. Attached hereto is an expanded Internal Revenue Service Form W-9 in the form attached as
Exhibit A hereto that has been executed by us.

     Please confirm your agreement with the foregoing by signing and returning to the undersigned
the duplicate copy of this Resale Confidentiality Agreement enclosed herewith. In accordance with
Section 2.11(j) of the Indenture dated as of February 6, 2007 (the “Indenture”), made by and
between you and U.S. Bank National Association, as trustee, we

B-4

 

will provide a fully executed copy of this Resale Confidentiality Agreement to the Registrar
(as defined in the Indenture) promptly after receipt thereof from you.

	 	 	 	 	 	 	 	 
	 	 	 	 	Very truly yours,

 	 
	 	 	 	 	[Please insert prospective purchaser’s name]

 	 
	 	 	 	 	By:  	 	 
	 	 	 	 	 	Name: 	 	 
	 	 	 	 	 	Title:  	 	 
	 	 	 	 	 	
Address: 	 	 
	 
	Accepted and agreed as of the date first written above:

ARGATROBAN ROYALTY SUB LLC

 	 	 	 	 	 
	By: Encysive Pharmaceuticals Inc., its Manager
 	 	 	 	 	 
	 
	By:  	 	 	 	 	 	 
	 	Name: 	 	 	 	 	 	 
	 	Title: 	 	 	 	 	 	 
	 

B-5

 

EXHIBIT
A

FORM OF
EXPANDED INTERNAL REVENUE SERVICE FORM W-9

See Exhibit K to the Indenture.

B-A-1

 

EXHIBIT C

AGENTS FOR SERVICE OF PROCESS

	 	 	 	 	 
	Party	 	Jurisdiction	 	Appointed Agent
	Argatroban Royalty Sub LLC 

Argatroban Royalty Sub LLC

	 	Delaware

New York
	 	The Corporation Trust Company

CT Corporation System

C-1

 

EXHIBIT D

COVERAGE OF DISTRIBUTION REPORT

	(i)	 	With respect to the current Payment Date, (A) the balances on deposit in the Collection
Account and any other Account established under the Indenture on the Calculation Date
immediately preceding the prior Payment Date (or, with respect to the first Payment Date, on
the Closing Date) (the “Preceding Calculation Date”), (B) the aggregate amounts of
deposits into and withdrawals from the Collection Account and any other Account established
under the Indenture from but excluding the Preceding Calculation Date to and including the
Calculation Date immediately preceding the Payment Date (the “Current Calculation
Date”) and (C) the balances on deposit in the Collection Account and any other Account
established under the Indenture on the Current Calculation Date.
	 
	(ii)	 	Analysis of Collection Account activity from the Preceding Calculation Date to the Current
Calculation Date
	 
	 	 	Balance on the Preceding Calculation Date
	 
	 	 	Collections from but excluding the Preceding Calculation Date to and including the Current
Calculation Date (“Current Collections”)
	 
	 	 	Aggregate Note payments from but excluding the Preceding Calculation Date to and including
the Current Calculation Date, including pursuant to Section 2.5(e)
	 
	 	 	Expense payments payable on the Current Calculation Date (“Current Expenses”)

Balance on the Current Calculation Date
	 
	(iii)	 	Amount, if any, to be transferred from the Holdback Account to the Collection Account on the
current Payment Date
	 
	(iv)	 	Payments on the current Payment Date
	 
	 	 	Current Expenses

Servicing Fee

Interest Amount

Additional Interest, if any

Principal payments, if any
	 
	(v)	 	Outstanding Principal Balance
	 
	 	 	Opening Outstanding Principal Balance

Principal payments, if any, made on the current Payment Date

Closing Outstanding Principal Balance
	 
	(vi)	 	Amount distributed to the Issuer from the Collection Account, if any, with respect to the
current Payment Date
	 
	(vii)	 	Amount distributed to the Parent from the Holdback Account, if any, on or prior to the
current Payment Date

D-1

 

	(viii)	 	A withholding obligation may be included
	 
	(ix)	 	Appropriate modifications will be made to contemplate any Refinancing Notes and/or Class B
Notes

D-2

 

EXHIBIT E

UCC FINANCING STATEMENTS

	1.	 	A Form UCC-1 Financing Statement will be filed with the Secretary of State of the State of
Delaware naming the Issuer as debtor and the Trustee as secured party.

E-1

 

EXHIBIT F

FORM OF CERTIFICATE OF EUROCLEAR OR CLEARSTREAM FOR PERMANENT REGULATION S GLOBAL NOTE

__________, 20__

U.S. Bank National Association,

as Trustee

One Federal Street, 3rd Floor

Boston, Massachusetts 02110

Attention: Corporate Trust Services (Argatroban Royalty Sub LLC)

Argatroban Royalty Sub LLC

c/o Encysive Pharmaceuticals Inc.

4848 Loop Central Drive

Suite 700

Houston, Texas 77081

Attention: Gordon Busenbark

     Re: Argatroban Royalty Sub LLC (the “Issuer”)

Ladies and Gentlemen:

     This letter relates to U.S.$                     principal amount of Argatroban PhaRMASM
Secured 12% Notes Due 2014 of the Issuer (the “Notes”) represented by a Note which bears a
legend (the “Legended Note”) outlining restrictions upon transfer of such Legended Note.
Pursuant to Section 2.1 of the Indenture dated as of February 6, 2007 (the “Indenture”)
relating to the Notes and certain other classes of notes of the Issuer, we hereby certify that we
are (or we will hold such securities on behalf of) an Institutional Accredited Investor (as defined
in the Indenture) outside the United States to whom the Notes may be transferred in accordance with
Rule 904 of Regulation S promulgated under the U.S. Securities Act of 1933, as amended
(“Regulation S”). Accordingly, you are hereby requested to exchange the Legended Note for
a Permanent Regulation S Global Note (as defined in the Indenture) representing an identical
principal amount of Notes, all in the manner provided for in the Indenture.

     Each of you is entitled to rely upon this letter and is irrevocably authorized to produce this
letter or a copy hereof to any interested party in any administrative or legal proceeding or
official inquiry with respect to the matters covered hereby. Certain terms used in this
certificate have the meanings set forth in Regulation S.

	 	 	 	 	 
	 	Very truly yours,

[Euroclear Bank S.A./N.V.][Clearstream Banking]

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

F-1

 

	 	 	 	 	 

EXHIBIT G

FORM OF CERTIFICATE OF BENEFICIAL OWNER OF TEMPORARY REGULATION S GLOBAL NOTE

Euroclear Bank S.A./N.V.

[Address]

AND/OR

Clearstream Banking

[Address]

	 	 	Re: Argatroban Royalty Sub LLC (the “Issuer”)

     Reference is hereby made to the Indenture, dated as of February 6, 2007 (the
“Indenture”), made by and between the Issuer and U.S. Bank National Association, as trustee
(the “Trustee”). Capitalized terms used but not defined herein shall have the meanings
given to them in the Indenture.

     This letter relates to U.S.$                     principal amount of Argatroban PhaRMASM
Secured 12% Notes Due 2014 that are held in the form of a Beneficial Interest in the Temporary
Regulation S Global Note (CUSIP No.                     ) through DTC by the undersigned (the
“Holder”) in the name of                     . The Holder of such Temporary Regulation S Global Note
hereby requests the receipt of payments due and payable [on the applicable Payment Date] pursuant
to Section 2.5 of the Indenture.

     The Holder hereby represents and warrants that it (i) is an Institutional Accredited Investor,
(ii) is not a U.S. Person, (iii) does not hold the above-referenced Temporary Regulation S Global
Note for the account or benefit of a U.S. Person (other than a distributor) and (iv) has executed
and delivered to the Registrar a Confidentiality Agreement. Certain terms in this certificate not
otherwise defined in the Indenture have the meanings given to them in Regulation S.

     This certificate and the statements contained herein are made for your benefit and the benefit
of the Paying Agent.

	 	 	 	 	 
	 	[Name of Holder]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

G-1

 

	 	 	 	 	 

EXHIBIT H

FORM OF CERTIFICATE OF EUROCLEAR OR CLEARSTREAM FOR PAYMENTS

U.S. Bank National Association,

as Paying Agent

One Federal Street, 3rd Floor

Boston, Massachusetts 02110

Attention: Corporate Trust Services (Argatroban Royalty Sub LLC)

     Re: Argatroban Royalty Sub LLC (the “Issuer”)

     Reference is hereby made to the Indenture, dated as of February 6, 2007 (the
“Indenture”), made by and between the Issuer and U.S. Bank National Association, as trustee
(the “Trustee”). Capitalized terms used but not defined herein shall have the meanings
given to them in the Indenture.

     This letter relates to U.S.$                     principal amount of Argatroban PhaRMASM
Secured 12% Notes Due 2014 that are held in the form of a Beneficial Interest in the Temporary
Regulation S Global Note (CUSIP No.                     ) through DTC by the undersigned (the
“Holder”) in the name of                     . Certain Holders of the Beneficial Interests in such
Temporary Regulation S Global Note have requested the receipt of payments due and payable [on the
applicable Payment Date] pursuant to Section 2.5 of the Indenture.

     We have received from such Holders certifications to the effect that they (i) are
Institutional Accredited Investors, (ii) are not U.S. Persons, (iii) do not hold the
above-referenced Temporary Regulation S Global Note for the account or benefit of U.S. Persons
(other than distributors) and (iv) have executed and delivered to the Registrar a Confidentiality
Agreement. Certain terms in this certificate not otherwise defined in the Indenture have the
meanings given to them in Regulation S.

     Accordingly, the Holders of the Beneficial Interests in the Temporary Regulation S Global Note
are entitled to receive interest, principal and premium, if any, in accordance with the terms of
the Indenture in the amount of U.S.$                    .

	 	 	 	 	 
	 	[Clearstream Banking][Euroclear Bank S.A./N.V.]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

H-1

 

	 	 	 	 	 

EXHIBIT I

FORM OF CERTIFICATE OF PROPOSED TRANSFEROR

__________, 20__

U.S. Bank National Association,

as Registrar

One Federal Street, 3rd Floor

Boston, Massachusetts 02110

Attention: Corporate Trust Services (Argatroban Royalty Sub LLC)

Argatroban Royalty Sub LLC

c/o Encysive Pharmaceuticals Inc.

4848 Loop Central Drive

Suite 700

Houston, Texas 77081

Attention: Gordon Busenbark

     Re: Argatroban Royalty Sub LLC (the “Issuer”)

Ladies and Gentlemen:

     In connection with our proposed sale of U.S.$                     aggregate principal amount of
Argatroban PhaRMASM Secured 12% Notes Due 2014 of the Issuer (the “Notes”), we
confirm that such sale has been effected pursuant to and in accordance with Regulation S under the
U.S. Securities Act of 1933, as amended (“Regulation S”) and, accordingly, we represent
that:

     (1) the offer of the Notes was not made to a person in the U.S.;

     (2) at the time the buy order was originated, the transferee was an institutional accredited
investor (as defined in subparagraph (a) (1), (2), (3) or (7) of Rule 501 under the U.S. Securities
Act of 1933, as amended) outside the U.S. or we and any person acting on our behalf reasonably
believed that the transferee was an institutional accredited investor outside the U.S.;

     (3) no directed selling efforts have been made by us in the U.S. in contravention of the
requirements of Rule 903(b) or Rule 904(b) of Regulation S, as applicable;

     (4) the transaction is not part of a plan or scheme to evade the registration requirements of
the U.S. Securities Act of 1933; and

     (5) the transferee has entered into the confidentiality agreement and accompanying expanded
Internal Revenue Service Form W-9 regarding U.S. residency required in connection with the purchase
of the Notes.

     Each of you is entitled to rely upon this letter and is irrevocably authorized to produce this
letter or a copy hereof to any interested party in any administrative or legal proceeding or

I-1

 

official inquiry with respect to the matters covered hereby. Certain terms used in this
certificate have the meanings set forth in Regulation S.

	 	 	 	 	 
	 	Very truly yours,

[Name of Transferor]

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

I-2

 

	 	 	 	 	 

EXHIBIT J

FORM OF CERTIFICATE OF CERTAIN PROPOSED INSTITUTIONAL ACCREDITED INVESTOR TRANSFEREES

__________, 20__

U.S. Bank National Association,

as Registrar

One Federal Street, 3rd Floor

Boston, Massachusetts 02110

Attention: Corporate Trust Services (Argatroban Royalty Sub LLC)

Argatroban Royalty Sub LLC

c/o Encysive Pharmaceuticals Inc.

4848 Loop Central Drive

Suite 700

Houston, Texas 77081

Attention: Gordon Busenbark

Ladies and Gentlemen:

     In connection with our proposed purchase of Notes (the “Notes”) of Argatroban Royalty
Sub LLC (the “Issuer”), we confirm that:

     1. We have duly executed and delivered to the Registrar (as defined in that certain Indenture
dated as of February 6, 2007 (the “Indenture”) between the Issuer and U.S. Bank National
Association, as trustee, as amended, restated, supplemented or otherwise modified from time to time
in accordance with the terms thereof) a Resale Confidentiality Agreement and have subsequently
received a copy of the Private Placement Memorandum dated January 30, 2007 (the “Private
Placement Memorandum”) relating to the Notes and such other information as we deem necessary in
order to make our investment decision. We acknowledge that we have read and agreed to the matters
stated in the section entitled “Transfer Restrictions” of such Private Placement Memorandum and the
restrictions on duplication and circulation of such Private Placement Memorandum.

     2. We understand that any subsequent transfer of the Notes is subject to certain restrictions
and conditions set forth in the Private Placement Memorandum under “Transfer Restrictions” and the
undersigned agrees to be bound by, and not to resell, pledge or otherwise transfer the Notes except
in compliance with, such restrictions and conditions and the U.S. Securities Act of 1933, as
amended (the “Securities Act”).

     3. We understand that the offer and sale of the Notes have not been registered under the
Securities Act, that the Notes will only be in the form of definitive physical certificates and
that the Notes may not be offered or sold except as permitted in the following sentence. We agree,
on our own behalf and on behalf of any accounts for which we are acting as hereinafter stated,
that, if we should sell any Notes in the future, we will do so only (1) (A) to the Issuer or any
subsidiary thereof, (B) in accordance with Rule 144A under the Securities Act to a qualified

J-1

 

institutional buyer (as defined therein), (C) to an institutional accredited investor (as
defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act)
(“Institutional Accredited Investor”) that, prior to such transfer, furnishes to the
Trustee (as defined in the Indenture) a signed letter containing certain representations and
agreements relating to the restrictions on transfer of the Notes (the form of which letter can be
obtained from the Trustee) and an opinion of counsel acceptable to the Issuer that such transfer is
in compliance with the Securities Act, (D) to an Institutional Accredited Investor in an offshore
transaction in compliance with Rule 904 of Regulation S under the Securities Act or (E) to an
Institutional Accredited Investor after the time period referred to in Rule 144(k) under the
Securities Act expires, and we further agree to provide to any entity purchasing any of the Notes
from us a notice advising such purchaser that resales of the Notes are restricted as stated herein
and (2) in each case, in accordance with any applicable securities laws of any state in the U.S. or
any other applicable jurisdiction and in accordance with the legend to be set forth in the Notes,
which will reflect the substance of this paragraph.

     4. We understand that, on any proposed resale of any Notes, we will be required to furnish to
the Issuer and the Trustee such certifications, legal opinions and other information as the Issuer
and the Trustee may reasonably require to confirm that the proposed sale complies with the
foregoing restrictions. We further understand that a resale confidentiality agreement and
accompanying expanded Internal Revenue Service Form W-9 regarding U.S. residency is required under
the Indenture to be executed and delivered by any proposed transferee to whom we wish to sell any
Notes.

     5. We are an Institutional Accredited Investor and have such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and risks of our
investment in the Notes, and we and any accounts for which we are acting are able to bear the
economic risks of our or their investment.

     6. We are acquiring the Notes purchased by us for our own account or for one or more accounts
(each of which is an Institutional Accredited Investor) as to each of which we exercise sole
investment discretion.

     7. We are not acquiring the Notes with a view to distribution thereof or with any present
intention of offering or selling the Notes, except as permitted above, provided that the
disposition of our property and property of any accounts for which we are acting as fiduciary shall
remain at all times within our control.

     You, the Issuer and the Trustee are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in any administrative or
legal proceeding or official inquiry with respect to the matters covered hereby.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

J-2

 

	 	 	 	 	 

EXHIBIT K

FORM OF EXPANDED INTERNAL REVENUE SERVICE FORM W-9

     See attached.

K-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]