Document:

exv10w79

Exhibit 10.79

CHESAPEAKE FUNDING LLC

$1.0 billion

Series 2009-1 Floating Rate Asset Backed Notes

PURCHASE AGREEMENT

June 2, 2009

J.P. Morgan Securities Inc.

Banc of America Securities LLC

Citigroup Global Markets Inc.

As Representatives of the several Initial Purchasers named in Schedule 1,

c/o J.P. Morgan Securities Inc.

270 Park Avenue

New York, New York 10017

Ladies and Gentlemen:

          CHESAPEAKE FUNDING LLC, a Delaware special purpose limited liability company (the
“Issuer”), proposes to issue and sell U.S. $1,000,000,000 principal amount of its Series
2009-1 Floating Rate Asset Backed Notes (the “Securities”). The Securities will be issued
pursuant to the Series 2009-1 Indenture Supplement, to be dated as of June 9, 2009 (the
“Indenture Supplement”), between the Issuer and The Bank of New York Mellon, as Indenture
Trustee (the “Indenture Trustee”), to the Amended and Restated Base Indenture, dated as of
December 17, 2008 (as amended or modified from time to time, the “Base Indenture” and,
together with the Indenture Supplement, the “Indenture”), between the Issuer and the
Indenture Trustee. The Issuer is a wholly-owned subsidiary of PHH Sub 2 Inc. (“PHH Sub 2”)
and an indirect wholly-owned subsidiary of PHH Corporation (“PHH”). The Issuer makes loans
to Chesapeake Finance Holdings LLC (“Holdings”) pursuant to a Loan Agreement among the
Issuer, Holdings and D.L. Peterson Trust (the “Origination Trust”), which are secured by,
among other things, beneficial interests in certain assets of the Origination Trust. PHH Vehicle
Management Services, LLC (“VMS”) acts as administrator of the Issuer and Holdings and acts
as the servicer of the assets of the Origination Trust. VMS is an indirect wholly-owned subsidiary
of PHH. Holdings is an entity whose sole common member is VMS and whose sole preferred member is
PHH Sub 1 Inc. (“PHH Sub 1”), a wholly-owned subsidiary of PHH. VMS, PHH and the Issuer
hereby confirm their agreement with the several initial purchasers named in Schedule 1 hereto (the
“Initial Purchasers”) concerning the purchase of the Securities from the Issuer by the
Initial Purchasers.

          Certain of the Initial Purchasers are financial institutions appearing on the Federal Reserve
Bank of New York’s list of Primary Government Securities Dealers Reporting to the Government
Securities Dealers Statistics Unit of the Federal Reserve Bank of New York (each in such capacity,
a “Primary Dealer”), and may be party to that certain Master Loan and Security Agreement
among the Federal Reserve Bank of New York (the “FRBNY”), as Lender, various Primary
Dealers party thereto, The Bank of New York Mellon, as Administrator, and The Bank of New York
Mellon, as Custodian (the “MLSA”), in the form most recently posted by the

 

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

 

2

FRBNY at http://www.newyorkfed.org/markets/talf_docs.html, in connection with the Term
Asset-Backed Securities Loan Facility (“TALF”). To the extent expressly provided in this
Agreement, and subject to the limitations set forth in Section 23 hereof, certain of the rights,
benefits and remedies of the Initial Purchasers under this Agreement will be for the benefit of,
and will be enforceable by, each Initial Purchaser who is a Primary Dealer (each a “PD Initial
Purchaser”) not only in its capacity as an Initial Purchaser but also in its capacity as a
Primary Dealer and as a signatory to a letter agreement making such Primary Dealer a party to the
MLSA.

          The Securities will be offered and sold to the Initial Purchasers without being registered
under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon an
exemption therefrom. PHH, VMS and the Issuer have prepared a preliminary offering circular dated
May 22, 2009 (the “First Preliminary Offering Circular”) and a second preliminary offering
circular dated May 29, 2009 (the “Second Preliminary Offering Circular” and, together with
the First Preliminary Offering Circular, the “Preliminary Offering Circular”), and have or
will prepare and deliver to the Initial Purchasers, on or promptly after the date hereof, copies of
a final offering circular (the “Final Offering Circular”), dated the date hereof, to be
used by the Initial Purchasers in connection with their solicitation of purchases of, or offering
of, the Securities. Any references herein to the Preliminary Offering Circular and the Final
Offering Circular shall be deemed to include all amendments and supplements thereto and all
documents incorporated by reference thereto, unless otherwise noted. PHH, VMS and the Issuer
hereby confirm that they have authorized the use of the Preliminary Offering Circular, the other
Time of Sale Information (as defined below) and the Final Offering Circular in connection with the
offering and resale of the Securities by the Initial Purchasers in accordance with Section 2.

          Capitalized terms used but not defined herein shall have the meanings given to such terms in
the Indenture.

          At or prior to the time when sales of the Securities were first made (the “Time of
Sale”), the following information shall have been prepared (collectively, the “Time of Sale
Information”): the Preliminary Offering Circular, as supplemented and amended by a pricing term
sheet substantially in the form of Annex B hereto setting forth the terms of the Securities omitted
from the Preliminary Offering Circular, and the other written communications listed on Annex A
hereto.

          1. Representations, Warranties and Agreements of the Issuer and PHH. (a) The Issuer
and PHH jointly and severally represent and warrant to, and agree with, (i) the several Initial
Purchasers and (ii) with respect to subsections (a)(i), (ii), (xxi), (xxii), (xxiii) and (xxiv) of
this Section 1, the PD Initial Purchasers in their capacities as Primary Dealers with respect to
the TALF loans secured by the Securities, on and as of the date hereof and the Closing Date (as
defined in Section 3) that:

     (i) The Preliminary Offering Circular, as of its date, did not, the Time of Sale
Information, at the Time of Sale did not and on the Closing Date will not, and the Final
Offering Circular, as of its date and on the Closing Date, will not, contain any untrue
statement of a material fact or omit to state a material fact required to be stated therein
or necessary in order to make the statements therein, in the light of the circumstances
under

 

3

which they were made, not misleading; provided, that the Issuer and PHH make
no representation or warranty as to information contained in or omitted from the Time of
Sale Information or the Final Offering Circular in reliance upon and in conformity with
written information relating to the Initial Purchasers furnished to the Issuer through the
Representatives by or on behalf of any Initial Purchaser specifically for use therein (the
“Initial Purchasers’ Information”);

     (ii) Each of the Preliminary Offering Circular and the Final Offering Circular, as of
its respective date, contains all of the information that, if requested by a prospective
purchaser of the Securities on the date hereof and on the Closing Date, would be required to
be provided to such prospective purchaser pursuant to Rule 144A(d)(4) under the Securities
Act;

     (iii) Assuming the accuracy of the representations and warranties of the Initial
Purchasers contained in Section 2 and their compliance with the agreements set forth
therein, it is not necessary, in connection with the issuance and sale of the Securities to
the Initial Purchasers and the offer, resale and delivery of the Securities by the Initial
Purchasers in the manner contemplated by this Agreement, the Preliminary Offering Circular
and the Final Offering Circular, to register the Securities under the Securities Act or to
qualify the Indenture under the Trust Indenture Act of 1939, as amended (the “Trust
Indenture Act”);

     (iv) The Issuer has been duly formed as a limited liability company and is validly
existing and in good standing under the laws of the State of Delaware, is qualified to do
business and is in good standing as a foreign limited liability company in each jurisdiction
in which the ownership or lease of property or the conduct of its business requires such
qualification, and has the requisite power and authority to own or hold its properties and
to conduct the business in which it is engaged as described in the Time of Sale Information
and the Final Offering Circular;

     (v) The Issuer has the requisite power and authority to execute and deliver this
Agreement, the Securities, the Indenture and any other Transaction Document to which it is a
party and perform its obligations hereunder and thereunder;

     (vi) Each of the Transaction Documents to which the Issuer is a party has been duly
authorized, executed and delivered by the Issuer and constitutes the legal, valid and
binding obligation of the Issuer enforceable against the Issuer in accordance with its
terms, except as enforcement thereof may be limited by bankruptcy, insolvency or other
similar laws relating to or affecting generally the enforcement of creditors’ rights or by
general equitable principles;

     (vii) The Issuer is not in violation of the LLC Agreement or in default in the
performance or observance of any obligation, agreement, covenant or condition contained in
any contract, indenture, mortgage, loan agreement or lease to which it is a party or by
which it or its properties may be bound. The execution and delivery of this Agreement and
the Transaction Documents to which the Issuer is a party and the incurrence of the
obligations and consummation of the transactions herein and therein contemplated will

 

4

not conflict with, or constitute a breach of or default under, the LLC Agreement or any
contract, indenture, mortgage, loan agreement or lease, to which the Issuer is a party or by
which it or its properties may be bound, or any law, administrative regulation or court
decree;

     (viii) This Agreement has been duly authorized, executed and delivered by the Issuer;

     (ix) The Securities have been duly authorized for issuance, offer and sale as
contemplated by this Agreement and, when authenticated by the Indenture Trustee and issued
and delivered against payment of the purchase price therefor, will constitute legal, valid
and binding obligations of the Issuer enforceable in accordance with their terms, except as
enforcement thereof may be limited by bankruptcy, insolvency, or other similar laws relating
to or affecting generally the enforcement of creditors’ rights or by general equitable
principles;

     (x) No consent, approval, authorization, order, registration or qualification of or
with any court or any regulatory authority or other governmental agency or body is required
for the issuance, offer or sale of the Securities by the Issuer in accordance with the terms
of this Agreement or for the consummation of the transactions contemplated by this Agreement
and the Transaction Documents except to the extent provided for in the Transaction
Documents;

     (xi) There are no legal or governmental proceedings pending to which the Issuer is a
party or of which any property of the Issuer is the subject (other than any such proceedings
involving the Issuer’s property which would not have a Material Adverse Effect) and, to the
best of its knowledge, no such proceedings are threatened or contemplated by governmental
authorities or threatened by others;

     (xii) The Issuer is not an “investment company” within the meaning of the Investment
Company Act of 1940, as amended;

     (xiii) As of the Closing Date, the representations and warranties of the Issuer
contained in the Transaction Documents to which the Issuer is a party will be true and
correct and are repeated herein as though fully set forth herein;

     (xiv) On and immediately after the Closing Date, the Issuer (after giving effect to
the issuance of the Securities and to the other transactions related thereto as described in
the Time of Sale Information and the Final Offering Circular) will be Solvent. As used in
this paragraph, the term “Solvent” means, with respect to a particular date, that on
such date (A) the present fair market value (or present fair saleable value) of the assets
of the Issuer is not less than the total amount required to pay the probable liabilities of
the Issuer on its total existing debts and liabilities (including contingent liabilities) as
they become absolute and matured, (B) the Issuer is able to realize upon its assets and pay
its debts and other liabilities, contingent obligations and commitments as they mature and
become due in the normal course of business, (C) assuming the sale of the Securities as
contemplated
by this Agreement, the Time of Sale Information and the Final Offering Circular, the

 

5

Issuer is not incurring debts or liabilities beyond its ability to pay as such debts and
liabilities mature and (D) the Issuer is not engaged in any business or transaction, and is
not about to engage in any business or transaction, for which its property would constitute
unreasonably small capital after giving due consideration to the prevailing practice in the
industry in which the Issuer is engaged. In computing the amount of such contingent
liabilities at any time, it is intended that such liabilities will be computed at the amount
that, in the light of all the facts and circumstances existing at such time, represents the
amount that can reasonably be expected to become an actual or matured liability;

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

     (xvi) None of the Issuer, any of its affiliates or any person acting on its or their
behalf has engaged or will engage, in connection with the offering of the Securities, in any
directed selling efforts (as such term is defined in Regulation S under the Securities Act
(“Regulation S”)), and all such persons have complied and will comply with the
offering restrictions requirements of Regulation S to the extent applicable;

     (xvii) Neither the Issuer nor any of its affiliates has, directly or through any
agent, sold, offered for sale, solicited offers to buy or otherwise negotiated in respect
of, any security (as such term is defined in the Securities Act), which is or will be
integrated with the sale of the Securities in a manner that would require registration of
the Securities under the Securities Act;

     (xviii) None of the Issuer, any of its affiliates or any other person acting on its or
their behalf has engaged, in connection with the offering of the Securities, in any form of
general solicitation or general advertising within the meaning of Rule 502(c) under the
Securities Act;

     (xix) There are no securities of the Issuer registered under the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), or listed on a national securities
exchange or quoted in a U.S. automated inter-dealer quotation system;

     (xx) The Issuer has not taken and will not take, directly or indirectly, any action
prohibited by Regulation M under the Exchange Act in connection with the offering of the
Securities;

     (xxi) Assuming the Securities receive the ratings described in the Preliminary
Offering Circular, the Securities satisfy all requirements to be “eligible collateral”
(“Eligible Collateral”) as such term is defined under the MLSA with reference to the
Term Asset-Backed Securities Loan Facility: Terms and Conditions, effective May 19, 2009 or
as in effect on the date of the Preliminary Offering Circular or the date of the Final
Offering Circular, posted by the FRBNY at http://www.newyorkfed.org/markets/talf_terms.html
and the Term Asset-Backed Securities Loan Facility Frequently Asked Questions, effective May
19, 2009 or as in
effect on the date of the Preliminary Offering Circular or the date of the Final
Offering

 

6

Circular, posted by the FRBNY at http://www.newyorkfed.org/markets/talf_faq.html
under TALF;

     (xxii) The Securities and the Unit Leases and the Fleet Receivables underlying the
Securities satisfy all applicable criteria for securities relating to “auto loans” under
TALF, including that the Securities are being issued to refinance existing Series of
Variable Funding Investor Notes with commitment termination dates in 2009 and that the
initial aggregate principal amount of the Securities does not exceed the maximum aggregate
Invested Amount of such Series; and

     (xxiii) The Preliminary Offering Circular contains, and the Final Offering Circular
will contain, all information required to be included therein under TALF in order for the
Securities to be Eligible Collateral.

     (xxiv) As of the date hereof and the Closing Date, the representations and warranties
of the Issuer and PHH contained in the Certification as to TALF Eligibility to be attached
as Annex A to the Final Offering Circular (the “TALF Certification”) are and will be
true and correct and are repeated herein as though fully set forth herein.

          (b) PHH and VMS jointly and severally represent and warrant to, and agree with, the several
Initial Purchasers on and as of the date hereof and the Closing Date that:

     (i) VMS (A) has been duly formed and is validly existing as a limited liability
company and is in good standing under the laws of the State of Delaware, (B) is qualified to
do business and is in good standing as a foreign limited liability company in each
jurisdiction in which the ownership or lease of property or the conduct of its business
requires such qualification, except where such lack of qualification or good standing would
not have a material adverse effect on its condition (financial or other), business or
results of operations or its ability to perform its obligations hereunder or under the
Transaction Documents to which it is a party (a “VMS Material Adverse Effect”) and
(C) has the requisite power and authority to own or hold its properties and to conduct the
business in which it is engaged as described in the Time of Sale Information and the Final
Offering Circular;

     (ii) VMS has the requisite power and authority to execute and deliver this Agreement
and any Transaction Document to which it is a party and perform its obligations hereunder
and thereunder;

     (iii) This Agreement and each of the Transaction Documents to which VMS is a party
have been duly authorized, executed and delivered by it and constitute its legal, valid and
binding obligations enforceable against it in accordance with their respective terms, except
as enforcement thereof may be limited by bankruptcy, insolvency or other similar laws
relating to or affecting generally the enforcement of creditors’ rights or by general
equitable principles;

     (iv) VMS is not in violation of its organizational documents or in default in the
performance or observance of any obligation, agreement, covenant or condition contained
in any contract, indenture, mortgage, loan agreement or lease to which it is a party or
by

 

7

which it or its properties may be bound which would have a VMS Material Adverse Effect.
The execution and delivery of this Agreement and the Transaction Documents to which VMS is a
party and the incurrence of the obligations and consummation of the transactions herein and
therein contemplated will not conflict with, or constitute a breach of or default under any
contract, indenture, mortgage, loan agreement or lease, to which VMS is a party or by which
it or its properties may be bound, or any law, administrative regulation or court decree,
with only such exceptions as would not have a VMS Material Adverse Effect, nor will such
action result in any violation of its organizational documents;

     (v) VMS possesses adequate certificates, licenses, authorities or permits issued by
appropriate governmental agencies or bodies necessary to conduct the business now operated
by it, with only such exceptions as would not have a VMS Material Adverse Effect, and has
not received any notice of proceedings relating to the revocation or modification of any
such certificate, license, authority or permit;

     (vi) There are no legal or governmental proceedings pending to which VMS, Holdings or
the Origination Trust is a party or of which any of its property is the subject that, if
determined adversely to it, individually or in the aggregate, could reasonably be expected
to have a VMS Material Adverse Effect; and to the best of VMS’s knowledge, no such
proceedings are threatened or contemplated by governmental authorities or threatened by
others;

     (vii) As of the Closing Date, VMS’s representations and warranties contained in the
Transaction Documents to which it is a party will be true and correct and are repeated
herein as though fully set forth herein;

     (viii) As of the Closing Date, the representations and warranties of each of Holdings
and the Origination Trust contained in the Transaction Documents to which it is a party will
be true and correct and are repeated herein as though fully set forth herein;

     (ix) No forward-looking statement (within the meaning of Section 27A of the Securities
Act and Section 21E of the Exchange Act) contained in the Preliminary Offering Circular or
the Final Offering Circular has been made or reaffirmed without a reasonable basis or has
been disclosed other than in good faith;

     (x) Since the date as of which information is given in the Time of Sale Information,
there has been no material adverse change or any development involving a prospective
material adverse change in its, Holdings’ or the Origination Trust’s, condition, financial
or otherwise, or in their respective earnings, business affairs, management or business
prospects, whether or not arising in the ordinary course of business;

     (xi) The Origination Trust has good and marketable title to the Origination Trust
Assets allocated to the Lease SUBI Portfolio and the 1999-1B Sold SUBI Portfolio, free and
clear of Liens (except as permitted or contemplated by the Transaction Documents),
and has not assigned to any person any of its right, title or interest in any such
Origination

 

8

Trust Assets, or obtained the release of any such prior assignment other than as
described in the Time of Sale Information and the Final Offering Circular;

     (xii) Holdings, as Initial Beneficiary, has made the appropriate allocation of assets
within the estate of the Origination Trust to the appropriate SUBI Portfolios, as required
by the Origination Trust Documents; and

     (xiii) VMS is the sole common member of Holdings and owns its membership interests
therein free and clear of Liens.

          (c) PHH represents and warrants to, and agrees with, the several Initial Purchasers on and as
of the date hereof and the Closing Date that:

     (i) PHH (A) has been duly formed and is validly existing as a corporation and is in
good standing under the laws of the State of Maryland, (B) is qualified to do business and
is in good standing as a foreign corporation in each jurisdiction in which the ownership or
lease of property or the conduct of its business requires such qualification, except where
such lack of qualification or good standing would not have a material adverse effect on its
condition (financial or other), business or results of operations or its ability to perform
its obligations hereunder or under the performance guaranty of the indemnity and repurchase
obligations of VMS under the Servicing Agreement by it, dated October 25, 2001 (the “PHH
Guarantee”) (a “PHH Material Adverse Effect”) and (C) has the requisite power
and authority to own or hold its properties and to conduct the business in which it is
engaged;

     (ii) PHH has the requisite power and authority to execute and deliver this Agreement
and the PHH Guarantee and to perform its obligations hereunder and thereunder;

     (iii) This Agreement has been duly authorized, executed and delivered by PHH and
constitutes its legal, valid and binding obligation enforceable against PHH in accordance
with its terms, except as enforcement thereof may be limited by bankruptcy, insolvency or
other similar laws relating to or affecting generally the enforcement of creditors’ rights
or by general equitable principles;

     (iv) The PHH Guarantee has been duly authorized, executed and delivered by PHH and the
PHH Guarantee constitutes its legal, valid and binding obligation enforceable against it in
accordance with its terms, except as enforcement thereof may be limited by bankruptcy,
insolvency or other similar laws relating to or affecting generally the enforcement of
creditors’ rights or by general equitable principles;

     (v) PHH is not in violation of its certificate of incorporation or by-laws or in default in
the performance or observance of any obligation, agreement, covenant or condition contained
in any contract, indenture, mortgage, loan agreement or lease to which it is a party or by
which it or its properties may be bound which would have a PHH Material Adverse Effect. The
execution and delivery of this Agreement and the PHH Guarantee and the incurrence of the
obligations and consummation of the transactions

 

9

     (vi) herein and therein contemplated will not conflict with, or constitute a breach of or
default under any contract, indenture, mortgage, loan agreement or lease, to which PHH is a
party or by which it or its properties may be bound, or any law, administrative regulation
or court decree, with only such exceptions as would not have a PHH Material Adverse Effect,
nor will such action result in any violation of its certificate of incorporation or by-laws;

     (vii) PHH possesses adequate certificates, licenses, authorities or permits issued by
appropriate governmental agencies or bodies necessary to conduct the business now operated
by it, with only such exceptions as would not have a PHH Material Adverse Effect, and has
not received any notice of proceedings relating to the revocation or modification of any
such certificate, license, authority or permit;

     (viii) There are no legal or governmental proceedings pending to which PHH is a party
or of which any of its property is the subject that, if determined adversely to it,
individually or in the aggregate, could reasonably be expected to have a PHH Material
Adverse Effect; and to the best of PHH’s knowledge, no such proceedings are threatened or
contemplated by governmental authorities or threatened by others;

     (ix) PHH is the sole common stockholder of each of PHH Mortgage Corporation and PHH
Sub 2 and owns its stock therein free and clear of Liens;

     (x) PHH Mortgage Corporation is the sole common stockholder of PHH Sub 1;

     (xi) PHH Sub 2 is the sole member of the Issuer and owns its membership interests
therein free and clear of Liens; and

     (xii) PHH Sub 1 is the sole preferred member of Holdings and owns its preferred
membership interests therein free and clear of Liens.

          2. Purchase and Resale of the Securities. (a) On the basis of the representations,
warranties and agreements contained herein, and subject to the terms and conditions set forth
herein, the Issuer agrees to issue and sell to each of the Initial Purchasers, severally and not
jointly, and each of the Initial Purchasers, severally and not jointly, agrees to purchase from the
Issuer, the principal amount of Securities set forth opposite the name of such Initial Purchaser on
Schedule 1 hereto at a purchase price equal to [***]% of the principal amount thereof. Interest on
the Securities will accrue during each Series 2009-1 Interest
Period at the rate of [***]% per annum
above One-Month LIBOR, as determined in accordance with the Indenture. The Issuer shall not be
obligated to deliver any of the Securities except upon payment for all of the Securities to be
purchased as provided herein.

          (b) The Initial Purchasers have advised the Issuer that they propose to offer the Securities for
resale upon the terms and subject to the conditions set forth herein and in the Time of Sale
Information. Each Initial Purchaser, severally and not jointly, represents and warrants to, and
agrees with, the Issuer and VMS that (i) it is purchasing the Securities pursuant to a private sale
exempt from registration under the Securities Act, (ii) it has not solicited offers for, or offered
or sold, and will not solicit offers for, or offer or sell, the Securities by means of any

 

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

 

10

form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation
D under the Securities Act (“Regulation D”) or in any manner involving a public offering
within the meaning of Section 4(2) of the Securities Act, (iii) it has solicited and will solicit
offers for the Securities only from, and has offered or sold and will offer, sell or deliver the
Securities, as part of its initial offering, only to (A) persons whom it reasonably believes to be
qualified institutional buyers (“Qualified Institutional Buyers”) as defined in Rule 144A
under the Securities Act (“Rule 144A”), or if any such person is buying for one or more
institutional accounts for which such person is acting as fiduciary or agent, only when such person
has represented to it that each such account is a Qualified Institutional Buyer to whom notice has
been given that such sale or delivery is being made in reliance on Rule 144A and in each case, in
transactions in accordance with Rule 144A and (B) in the case of offers outside the United States,
to persons other than U.S. Persons (as defined in Regulation S in the Securities Act) in accordance
with Rule 903 of Regulation S, (iv) it has not offered or sold and, prior to the date six months
after the date of issuance of the Securities will not offer or sell, any Securities to persons in
the United Kingdom except to persons whose ordinary activities involve them in acquiring, holding,
managing or disposing of investments (as principal or agent) for the purposes of their businesses
or otherwise in circumstances which have not resulted and will not result in an offer to the public
in the United Kingdom within the meaning of the Public Offers of Securities Regulations 1995 or the
Financial Services and Markets Act 2000 (the “FSMA”), (v) it has only communicated or
caused to be communicated and will only communicate or cause to be communicated any invitation or
inducement to engage in investment activity (within the meaning of section 21 of the FSMA) received
by it in connection with the issue or sale of any Securities in circumstances in which section
21(1) of the FSMA does not apply to the Issuer and (vi) it has complied and will comply with all
applicable provisions of the FSMA with respect to anything done by it in relation to such
Securities in, from or otherwise involving the United Kingdom. Each Initial Purchaser, severally
and not jointly, agrees that, prior to or simultaneously with the confirmation of sale by such
Initial Purchaser to any purchaser of any of the Securities purchased by such Initial Purchaser
from the Issuer pursuant hereto, such Initial Purchaser shall furnish to that purchaser a copy of
the Time of Sale Information (and any amendment or supplement thereto that the Issuer shall have
furnished to such Initial Purchaser prior to the date of such confirmation of sale). In addition
to the foregoing, each Initial Purchaser acknowledges and agrees that the Issuer and, for purposes
of the opinions to be delivered to the Initial Purchasers pursuant to Sections 6(h) and (p),
counsel for the Issuer and for the Initial Purchasers, respectively, may rely upon the accuracy of
the representations and warranties of the Initial Purchasers and their compliance with their
agreements contained in this Section 2, and each Initial Purchaser hereby consents to such
reliance.

          (c) The Issuer acknowledges and agrees that the Initial Purchasers may sell Securities to any
affiliate of an Initial Purchaser and that any such affiliate may sell Securities purchased by it
to an Initial Purchaser.

          3. Delivery of and Payment for the Securities. (a) Delivery of and payment for the
Securities shall be made at the offices of Simpson Thacher & Bartlett LLP, New York, New York, or
at such other place as shall be agreed upon by you as the representatives (collectively, the
“Representatives”) of the Initial Purchasers and the Issuer, at 10:00 A.M., New York City time, on June 9, 2009 (such date and
time of payment and delivery being referred to herein as the “Closing Date”).

 

11

          (b) On the Closing Date, payment of the purchase price for the Securities shall be made to
the Issuer by wire or book-entry transfer of same-day funds to such account or accounts as the
Issuer shall specify prior to the Closing Date or by such other means as the parties hereto shall
agree prior to the Closing Date against delivery to the Representatives, for the account of each of
the Initial Purchasers of the certificates evidencing the Securities. Time shall be of the
essence, and delivery at the time and place specified pursuant to this Agreement is a further
condition of the obligations of the Initial Purchasers hereunder. Upon delivery, the Securities
shall be in global form, registered in such names and in such denominations as the Representatives
shall have requested in writing not less than two full business days prior to the Closing Date.
The Issuer agrees to make one or more global certificates evidencing the Securities available for
inspection by the Representatives in New York, New York at least 24 hours prior to the Closing
Date.

          4. Further Agreements of the Issuer, PHH and VMS. Each of the Issuer, PHH and VMS,
jointly and severally, agrees with each of the several Initial Purchasers and, in the case of
subsections (s), (t), (u) and (v) of this Section 4, the PD Initial Purchasers in their capacities
as Primary Dealers with respect to the TALF loans secured by the Securities, that:

          (a) the Issuer will advise the Representatives promptly and, if requested, confirm such
advice in writing, of the happening of any event at any time prior to the completion of the initial
offering of the Securities as a result of which any Time of Sale Information or the Final Offering
Circular as then amended or supplemented would include any untrue statement of a material fact or
omit to state a material fact necessary in order to make the statements therein, in the light of
the circumstances existing when such Time of Sale Information or the Final Offering Circular is
delivered to a purchaser, not misleading; the Issuer shall advise the Representatives promptly of
any order preventing or suspending the use of the Time of Sale Information or the Final Offering
Circular, of any suspension of the qualification of the Securities for offering or sale in any
jurisdiction and of the initiation or threatening of any proceeding for any such purpose; and the
Issuer, PHH and VMS shall use their respective best efforts to prevent the issuance of any such
order preventing or suspending the use of the Time of Sale Information or the Final Offering
Circular or suspending any such qualification and, if any such suspension is issued, to obtain the
lifting thereof at the earliest possible time;

          (b) the Issuer, PHH and VMS shall prepare the Final Offering Circular in a form reasonably
acceptable to the Representatives and the Issuer shall furnish promptly to each of the
Representatives and counsel for the Initial Purchasers, without charge, as many copies of the
Preliminary Offering Circular, any other Time of Sale Information and the Final Offering Circular
(and any amendments or supplements thereto) as may be reasonably requested;

          (c) prior to making any amendment or supplement to any of the Time of Sale Information or the
Final Offering Circular, the Issuer shall furnish a copy thereof to each of the Representatives and
counsel for the Initial Purchasers and the Issuer shall not effect any such amendment or supplement to which the Representatives shall reasonably object by notice to the
Issuer after a reasonable period to review;

          (d) if, at any time prior to the Closing Date, any event shall occur or condition exist as a
result of which it is necessary to amend or supplement the Time of Sale Information in

 

12

order that
the Time of Sale Information will not include an untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, or if it is necessary at any such time to
amend or supplement the Time of Sale Information to comply with applicable law, the Issuer shall
promptly prepare such amendment or supplement as may be necessary to correct such untrue statement
or omission or so that the Time of Sale Information, as so amended or supplemented, will comply
with applicable law;

          (e) if, at any time prior to completion of the resale of the Securities by the Initial
Purchasers but in no event in excess of 180 days from the date hereof, any event shall occur or
condition exist as a result of which it is necessary to amend or supplement the Final Offering
Circular in order that the Final Offering Circular will not include an untrue statement of a
material fact or omit to state a material fact necessary in order to make the statements therein,
in the light of the circumstances existing at the time it is delivered to a purchaser, not
misleading, or if it is necessary at any such time to amend or supplement the Final Offering
Circular to comply with applicable law, the Issuer shall promptly prepare such amendment or
supplement as may be necessary to correct such untrue statement or omission or so that the Final
Offering Circular, as so amended or supplemented, will comply with applicable law;

          (f) for so long as the Securities are outstanding and are “restricted securities” within the
meaning of Rule 144(a)(3) under the Securities Act, the Issuer, PHH and VMS shall furnish to
holders of the Securities and prospective purchasers of the Securities designated by such holders,
upon request of such holders or such prospective purchasers, the information required to be
delivered pursuant to Rule 144A(d)(4) under the Securities Act, unless the Issuer is then subject
to and in compliance with Section 13 or 15(d) of the Exchange Act (the foregoing agreement being
for the benefit of the holders from time to time of the Securities and prospective purchasers of
the Securities designated by such holders);

          (g) the Issuer shall supply to each Initial Purchaser, on a continuing basis, three (3)
copies of all correspondence with, and information that the Issuer and its affiliates make
available to, the Indenture Trustee in connection with this Agreement and the Transaction Documents
and the transactions contemplated hereby and thereby;

          (h) the Issuer shall promptly take from time to time such actions as the Representatives may
reasonably request to qualify the Securities for offering and sale under the securities or Blue Sky
laws of such jurisdictions as the Representatives may designate and to continue such qualifications
in effect for so long as required for the resale of the Securities; and to arrange for the
determination of the eligibility for investment of the Securities under the laws of such
jurisdictions as the Representatives may reasonably request; provided that the Issuer shall
not be obligated to qualify as a foreign corporation or limited liability company in any
jurisdiction in which it is not so qualified or to file a general consent to service of process in
any jurisdiction;

          (i) the Issuer, PHH and VMS shall assist the Representatives in arranging for the Securities
to be eligible for clearance and settlement through The Depository Trust Company (“DTC”);

 

13

          (j) the Issuer, PHH and VMS shall not, and shall cause their affiliates not to, sell, offer
for sale or solicit offers to buy or otherwise negotiate in respect of any security (as such term
is defined in the Securities Act) which could be integrated with the sale of the Securities in a
manner which would require registration of the Securities under the Securities Act;

          (k) the Issuer, PHH and VMS shall not, and shall cause their affiliates not to, authorize or
knowingly permit any person acting on their behalf to, solicit any offer to buy or offer to sell
the Securities by means of any form of general solicitation or general advertising within the
meaning of Regulation D or in any manner involving a public offering within the meaning of Section
4(2) of the Securities Act; and the Issuer, PHH and VMS shall not offer, sell, contract to sell or
otherwise dispose of, directly or indirectly, any securities under circumstances where such offer,
sale, contract or disposition would cause the exemption afforded by Section 4(2) of the Securities
Act to cease to be applicable to the offering and sale of the Securities as contemplated by this
Agreement, the Time of Sale Information and the Final Offering Circular;

          (l) for a period of 60 days from the date of the Final Offering Circular, the Issuer, PHH and
VMS shall not, and shall cause their affiliates not to, offer for sale, sell, contract to sell or
otherwise dispose of, directly or indirectly, or file a registration statement for, or announce any
offer, sale, contract for sale of or other disposition of any debt securities issued by the Issuer
or any asset-backed securities backed by equipment leases originated by VMS or the Origination
Trust (other than the Securities), without the prior written consent of the Representatives;

          (m) the Issuer, PHH and VMS shall not, and shall cause each of their affiliated purchasers
(as defined in Regulation M under the Exchange Act) not to, make bids or purchase for the purpose
of creating actual, or apparent, active trading in or of raising the price of the Securities;

          (n) each of the Issuer, PHH and VMS shall do and perform all things required to be done and
performed by it under this Agreement that are within its control prior to or after the Closing
Date, and each of the Issuer, PHH and VMS shall use its best efforts to satisfy all conditions
precedent on its part to the delivery of the Securities;

          (o) none of the Issuer, PHH or VMS shall take any action prior to the Closing Date which
would require the Time of Sale Information or the Final Offering Circular to be amended or
supplemented pursuant to Section 4(d) or Section 4(e) of this Agreement;

          (p) the Issuer shall apply the net proceeds from the sale of the Securities as set forth in
the Time of Sale Information and the Final Offering Circular under the heading “Use of Proceeds”;

          (q) to the extent that the ratings to be provided with respect to the Securities by S&P and
Moody’s is conditional upon the furnishing of documents or the taking of any other actions by the
Issuer or any of its affiliates, the Issuer, PHH and VMS shall furnish such documents and take any
such other action that is reasonably requested by S&P or Moody’s;

          (r) the Issuer shall furnish to the Representatives copies of each report and certificate and
any financial information delivered to the Indenture Trustee pursuant to the Indenture;

 

14

          (s) each of the Issuer, PHH and VMS shall take all actions necessary to ensure that, on the
Closing Date, the Securities qualify as Eligible Collateral;

          (t) each of the Issuer and PHH shall fully and timely perform all actions required of it
pursuant to the TALF Certification, unless any such required action is waived by the FRBNY, or its
designated agents;

          (u) upon determining that any statement set forth in paragraph (2) of the TALF Certification
was not correct when made or ceased to be correct, the Issuer shall (i) promptly notify each PD
Initial Purchaser of such determination, (ii) notify the FRBNY and all registered holders of the
Securities in writing of such determination no later than 9:00 A.M., New York City time, on the
fourth Business Day following such determination, (iii) issue a press release regarding such
determination no later than 9:00 A.M., New York City time, on the fourth Business Day following
such determination, and (iv) promptly provide each PD Initial Purchaser a copy of each such
notification; and

          (v) upon the occurrence of any Amortization Event, the Issuer shall (i) promptly notify each
PD Initial Purchaser of such Amortization Event, (ii) promptly notify the FRBNY and all registered
holders of the Securities in writing of such occurrence, which notice shall be delivered to the
FRBNY’s custodian at talf@bnymellon.com and to FRBNY at talfreports@ny.frb.org at the same time
notice of the Amortization Event is given to the Trustee, (iii) promptly provide each PD Initial
Purchaser a copy of each such notification and (iv) include the material details of such
Amortization Event in the Monthly Settlement Statement delivered to the Series 2009-1 Investor
Noteholders immediately following the occurrence of such Amortization Event.

          5. Written Communications. Each of the Issuer, PHH and VMS hereby represents and
agrees that it (including its agents and representatives, other than the Initial Purchasers in
their capacity as such) has not prepared, made, used, authorized, approved or referred to and will
not prepare, make, use, authorize, approve or refer to any written communication that constitutes
an offer to sell or solicitation of an offer to buy the Securities other than (i) the Preliminary
Offering Circular, (ii) the Final Offering Circular and (iii) the documents listed on Annex A,
including the pricing term sheet substantially in the form of Annex B, which constitute part of the
Time of Sale Information.

          (b) Each Initial Purchaser hereby represents and agrees that it has not and will not use,
authorize use of, refer to, or participate in the planning for use of, any written communication
that constitutes an offer to sell or the solicitation of an offer to buy the Securities other than
(i) the Preliminary Offering Circular, (ii) the Final Offering Circular, (iii) any written
communication listed on Annex A, (iv) any written communication prepared by such Initial Purchaser
and approved by the Issuer in advance in writing or (v) any written communication
relating to or that contains the terms of the Securities and/or other information that was
included in the Preliminary Offering Circular or the Final Offering Circular.

          6. Conditions of Initial Purchasers’ Obligations. The respective obligations of the
several Initial Purchasers hereunder are subject to the accuracy, on and as of the date hereof and
the Closing Date, of the representations and warranties of the Issuer, PHH and VMS

 

15

contained
herein, to the accuracy of the statements of the Issuer, PHH, Holdings and VMS and their respective
officers made in any certificates delivered pursuant hereto, to the performance by the Issuer, PHH
and VMS of their obligations hereunder, and to each of the following additional terms and
conditions:

          (a) The Final Offering Circular (and any amendments or supplements thereto) shall have been
printed and copies distributed to the Initial Purchasers by 5:00 P.M., New York City time, on the
fourth Business Day prior to the Closing Date; and no stop order suspending the sale of the
Securities in any jurisdiction shall have been issued and no proceeding for that purpose shall have
been commenced or shall be pending or threatened.

          (b) None of the Initial Purchasers shall have discovered and disclosed to the Issuer, PHH or
VMS on or prior to the Closing Date that (i) the Time of Sale Information, as of the Time of Sale,
contained an untrue statement of a fact which, in the opinion of counsel for the Initial
Purchasers, is material or omitted to state any fact which, in the opinion of such counsel, is
material and is required to be stated therein or is necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading, or (ii) the Time of Sale
Information or the Final Offering Memorandum, or any amendment or supplement thereto, contains an
untrue statement of fact which, in the opinion of counsel for the Initial Purchasers, is material
or omits to state any act which, in the opinion of such counsel, is material and is required to be
stated therein or is necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading.

          (c) All corporate proceedings and other legal matters incident to the authorization, form and
validity of each of the Transaction Documents and the Final Offering Circular, and all other legal
matters relating to the Transaction Documents and the transactions contemplated thereby, shall be
satisfactory in all material respects to the Representatives; and the Issuer, PHH, PHH Sub 1, PHH
Sub 2, Holdings, VMS and the Origination Trust shall have furnished to the Representatives all
documents and information that they or their counsel may reasonably request to enable them to pass
upon such matters.

          (d) The Issuer shall have furnished to the Representatives (x) a letter from Deloitte and
Touche, LLP, addressed to the Initial Purchasers and dated as of May 29, 2009, in form and
substance satisfactory to the Representatives, concerning certain agreed-upon procedures performed
in respect of the Origination Trust Assets allocated to the Lease SUBI Portfolio and concerning the
accounting, financial and statistical information set forth or incorporated by reference in the
Time of Sale Information and (y) a letter from Deloitte and Touche, LLP, addressed to the Initial
Purchasers and dated the date hereof, in form and substance satisfactory to the Representatives,
concerning certain agreed-upon procedures performed in respect of the Origination Trust Assets
allocated to the Lease SUBI Portfolio and concerning the accounting, financial and statistical information set forth or incorporated by
reference in the Final Offering Circular.

          (e) The Indenture Supplement shall have been duly executed and delivered by the Issuer and
the Indenture Trustee, and the Securities shall have been duly executed and delivered by the Issuer
and duly authenticated by the Indenture Trustee.

 

16

          (f) The Representatives shall have received a letter from S&P stating that the Securities
have received a rating of “AAA” and a letter from Moody’s stating that the Securities have received
a rating of “Aaa.”

          (g) Subsequent to the execution and delivery of this Agreement, there shall not have occurred
any of the following: (i) any change, or any development involving a prospective change, in or
affecting particularly the business or properties of PHH or VMS which, in the judgment of the
Representatives, materially impairs the investment quality of the Securities or makes it
impractical or inadvisable to proceed with completion of the sale of and payment for the
Securities; (ii) any suspension or limitation of trading in securities generally on the New York
Stock Exchange or any setting of minimum prices for trading on such exchange; (iii) any moratorium
on commercial banking activities shall have been declared by federal or New York state authorities;
(iv) an outbreak or escalation of hostilities or a declaration by the United States of a national
emergency or war; (v) any material disruption in commercial banking, securities settlement or
clearance services in the United States; or (vi) any other substantial national or international
calamity or emergency the effect of which, in the case of this clause (vi), is, in the judgment of
the Representatives, so material and adverse as to make it impracticable or inadvisable to proceed
with the completion of the sale of and payment for the Securities on the terms and in the manner
contemplated by this Agreement and in the Time of Sale Information and the Final Offering Circular
(exclusive of any amendment or supplement thereto).

          (h) The Representatives shall have received an opinion of White & Case LLP, special counsel
to the Issuer, PHH, Holdings, the Origination Trust and the other Persons named therein, dated the
Closing Date and addressed to the Initial Purchasers in the form of Exhibit A attached
hereto. The opinion shall specify that the PD Initial Purchasers in their capacities as Primary
Dealers with respect to the TALF loans secured by the Securities shall be entitled to rely on (i)
the opinion set forth therein that the Securities are Eligible Collateral and (ii) the negative
assurances set forth therein with respect to the Time of Sale Information and the Final Offering
Circular.

          (i) The Representatives shall have received an opinion of White & Case LLP, special counsel
to the Issuer, dated the Closing Date and addressed to the Initial Purchasers in the form of
Exhibit B attached hereto.

          (j) The Representatives shall have received an opinion of Joseph W. Weikel, Senior Vice
President and General Counsel of VMS, dated the Closing Date and addressed to the Initial
Purchasers in the form of Exhibit C attached hereto.

          (k) The Representatives shall have received an opinion of the General Counsel of PHH, dated
the Closing Date and addressed to the Initial Purchasers in the form of Exhibit D attached
hereto.

          (l) The Representatives shall have received an opinion of Sonnenschein Nath & Rosenthal LLP,
counsel for the Indenture Trustee, dated the Closing Date and addressed to the Initial Purchasers
and in form and substance satisfactory to the Representatives and to counsel for the Initial
Purchasers.

 

17

          (m) The Representatives shall have received an opinion of Richards, Layton & Finger, counsel
for the Wilmington Trust Company, as Origination Trustee, and special Delaware counsel for the
Issuer, VMS, Holdings, the Origination Trust and Raven Funding LLC (“SPV”), dated the
Closing Date and addressed to the Initial Purchasers, in the form of Exhibit E attached
hereto.

          (n) The Representatives shall have received an opinion of DLA Piper LLP, Maryland local
counsel to the Issuer and VMS, dated the Closing Date and addressed to the Initial Purchasers, in
form and substance satisfactory to the Representatives and to counsel for the Initial Purchasers
and to the effect that none of the Origination Trust, Holdings nor the Issuer will be treated as an
association taxable as a corporation for Maryland state income or franchise tax purposes.

          (o) The Representatives shall have received an opinion of Drinker Biddle & Reath LLP, special
counsel to PHH Funding, LLC (the “Intermediary”), dated the Closing Date and addressed to
the Initial Purchasers, in form and substance satisfactory to the Representatives and to counsel
for the Initial Purchasers.

          (p) The Representatives shall have received an opinion of Simpson Thacher & Bartlett LLP,
dated the Closing Date and addressed to the Initial Purchasers, with respect to the validity of the
Securities and such other matters as the Representatives may reasonably request.

          (q) The Representatives shall have received an opinion of the Managing Counsel of Wells Fargo
Bank, National Association, dated the Closing Date and addressed to the Initial Purchasers, in form
and substance satisfactory to the Representatives and to counsel for the Initial Purchasers.

          (r) The Representatives shall have received a certificate or certificates signed by two
managers or officers of the Issuer, dated the Closing Date, stating that to the best of their
respective knowledge (i) the representations and warranties of the Issuer in this Agreement and any
Transaction Documents to which the Issuer is a party are true and correct on and as of the Closing
Date or, in the case of the representations and warranties in the Transaction Documents, on and as
of the dates specified in such agreements; (ii) that the Issuer has complied with all agreements
and satisfied all conditions on its part to be performed or satisfied hereunder or under the
Transaction Documents at or prior to the Closing Date; (iii) subsequent to the date as of which
information is given in the Time of Sale Information, there has not been any material adverse
change in the general affairs, business, properties, key personnel, capitalization, condition
(financial or otherwise) or results of operation of the Issuer except as set forth or
contemplated in the Time of Sale Information; and (iv) nothing has come to such managers’ or
officers’ attention that would lead such managers or officers to believe that the Preliminary
Offering Circular as of its date did not, the Time of Sale Information as of the Time of Sale did
not, the Final Offering Circular as of its date did not, and the Time of Sale Information and the
Final Offering Circular as of the Closing Date do not, include any untrue statement of a material
fact or omit to state any material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading.

 

18

          (s) The Representatives shall have received a certificate signed by any two of the managers,
President, any Vice President and the Treasurer of VMS, dated the Closing Date, in which such
officers shall state that, to the best of their respective knowledge (i) the representations and
warranties of VMS in this Agreement and any Transaction Documents to which VMS is a party are true
and correct on and as of the Closing Date or, in the case of the representations and warranties in
the Transaction Documents, on and as of the dates specified in such agreements; (ii) VMS has
complied with all agreements and satisfied all conditions on its part to be performed or satisfied
hereunder or under the Transaction Documents at or prior to the Closing Date; (iii) subsequent to
the date as of which information is given in the Time of Sale Information, there has not been any
material adverse change in the general affairs, business, properties, key personnel,
capitalization, condition (financial or otherwise) or results of operation of VMS except as set
forth or contemplated in the Time of Sale Information; and (iv) nothing has come to such managers’
or officers’ attention that would lead such managers or officers to believe that the Time of Sale
Information as of the Time of Sale did not, the Final Offering Circular as of its date did not, and
the Time of Sale Information and the Final Offering Circular as of the Closing Date do not, include
any untrue statement of a material fact or omit to state any material fact necessary in order to
make the statements therein, in the light of the circumstances under which they were made, not
misleading.

          (t) The Representatives shall have received a certificate signed by two managers or officers
of Holdings, dated the Closing Date, in which such managers shall state that, to the best of their
respective knowledge (i) the representations and warranties of Holdings in the Transaction
Documents to which Holdings is a party are true and correct on and as of the dates specified in
such Transaction Documents; (ii) Holdings has complied with all agreements and satisfied all
conditions on its part to be performed or satisfied hereunder or under the Transaction Documents at
or prior to the Closing Date; and (iii) subsequent to the date as of which information is given in
the Time of Sale Information, there has not been any material adverse change in the general
affairs, business, properties, key personnel, capitalization, condition (financial or otherwise) or
results of operation of Holdings except as set forth or contemplated in the Time of Sale
Information.

          (u) The Representatives shall have received a certificate signed by two officers of VMS, in
its capacity as Servicer of the Origination Trust, dated the Closing Date, in which the Servicer
shall state that, to the best of its knowledge (i) the representations and warranties regarding the
Origination Trust in the Transaction Documents are true and correct on and as of the dates
specified in such Transaction Documents; (ii) the Origination Trust has complied with all
agreements and satisfied all conditions on its part to be performed or satisfied hereunder or under
the Transaction Documents at or prior to the Closing Date; and (iii) subsequent to the date as of
which information is given in the Time of Sale Information, there has not been any material
adverse change in the general affairs, business, properties, key personnel, capitalization,
condition (financial or otherwise) or results of operation of the Origination Trust except as set
forth or contemplated in the Time of Sale Information.

          (v) The Representatives shall have received a certificate signed by two officers of PHH,
dated the Closing Date, in which such officers shall state that, to the best of their knowledge (i)
the representations and warranties of PHH in this Agreement are true and correct on and as of the
dates specified herein; (ii) PHH has complied with all agreements and satisfied

 

19

all conditions on its part to be performed or satisfied
hereunder at or prior to the Closing Date; (iii) subsequent
to the date as of which information is given in the Time of Sale Information, there has not been
any material adverse change in the general affairs, business, properties, key personnel,
capitalization, condition (financial or otherwise) or results of operation of PHH; and (iv) nothing
has come to such officers’ attention that would lead such officers to believe that the Preliminary
Offering Circular as of its date did not, the Time of Sale Information as of the Time of Sale did
not, the Final Offering Circular as of its date did not, and the Time of Sale Information and the
Final Offering Circular as of the Closing Date do not, include any untrue statement of a material
fact or omit to state any material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading.

          (w) The Issuer shall have one or more interest rate caps that satisfy the requirements of
Section 5A.11 of the Indenture Supplement.

          (x) The Representatives shall have received a copy of the duly executed supplement to the
Base Indenture amending the definition of “Eligible Floating Rate Index”, and such supplement shall
be in full force and effect.

          (y) The Representatives shall have received a copy of the duly executed Back-up Servicing
Agreement as described under “The Back-up Servicing Agreement” in the Time of Sale Information and
the Final Offering Circular.

          (z) The Issuer, PHH and VMS shall have taken all action required by the FRBNY for the
Securities to be Eligible Collateral and the Securities shall be Eligible Collateral.

          (aa) The Issuer, PHH and VMS shall have satisfied all applicable requirements under TALF,
including, without limitation, the execution and delivery of the following documents:

     (i) on or prior to 12:00 Noon, New York City time, on the date that is four Business
Days prior to the Closing Date (or such later time as may be specified by FRBNY) (the
“TALF Delivery Date”), a nationally recognized independent accounting firm that is
registered with the Public Company Accounting Oversight Board shall have furnished to the
FRBNY an attestation, substantially in the form required under TALF, electronically and by
mail, postmarked on or prior to such date, to the FRBNY, with a notification to the
Representatives that such attestation has been sent to the FRBNY;

     (ii) on or prior to 5:00 P.M., New York City time, on the TALF Delivery Date, the
Issuer and PHH, as sponsor, shall have executed the TALF Certification, and
delivered the TALF Certification to the FRBNY, with a copy to the Representatives, and
included the executed TALF Certification in the Final Offering Circular;

     (iii) on or prior to 12:00 Noon, New York City time, on the TALF Delivery Date, PHH,
as sponsor, shall have executed the Indemnity Undertaking relating to the Securities,
substantially in the form required under TALF, and delivered such Indemnity Undertaking
electronically and by mail, postmarked on or prior to such date to the FRBNY, with a copy to
the Representatives;

 

20

     (iv) on or prior to 10:00 A.M., New York City time, on the Closing Date, the Issuer
shall have delivered the rating agency letters described in paragraph (f) above to the
FRBNY; and

     (v) on or prior to the Closing Date, the Issuer and PHH, as sponsor, shall have
executed and delivered the Term Asset-Backed Securities Loan Facility Undertaking relating
to the Securities (the “TALF Undertaking”), substantially in the form attached
hereto as Exhibit F hereto, and delivered a copy to the Representatives.

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

          7. Termination. The obligations of the Initial Purchasers hereunder may be terminated by
the Representatives, in their absolute discretion, by notice given to and received by the Issuer
prior to delivery of and payment for the Securities if, prior to that time, any of the events
described in Sections 6(g), 6(r)(iii), 6(s)(iii), 6(t)(iii), 6(u)(iii) or 6(v)(iii) shall have
occurred and be continuing.

          8. Reimbursement of Initial Purchasers’ Expenses. If (a) this Agreement shall have been
terminated pursuant to Section 7, (b) the Issuer shall fail to tender the Securities for delivery
to the Initial Purchasers for any reason permitted under this Agreement or (c) the Initial
Purchasers shall decline to purchase the Securities for any reason permitted under this Agreement,
VMS shall reimburse the Initial Purchasers for such out-of-pocket expenses (including reasonable
fees and disbursements of counsel) as shall have been reasonably incurred by the Initial Purchasers
in connection with this Agreement and the proposed purchase and resale of the Securities.

          9. Indemnification. (a) Each of the Issuer, PHH and VMS shall, jointly and severally,
indemnify and hold harmless each Initial Purchaser (including, in the case of a PD Initial
Purchaser, in its capacity as a Primary Dealer), its affiliates, their respective officers,
directors, shareholders, partners, trustees, employees, representatives and agents, and each
person, if any, who controls any Initial Purchaser (including, in the case of a PD Initial
Purchaser, in its capacity as a Primary Dealer) within the meaning of the Securities Act or the
Exchange Act (collectively referred to for purposes of this Section 9(a) and Section 10 as an Initial Purchaser), from and against any
loss, claim, damage or liability, joint or several, or any action in respect thereof (including,
without limitation, any loss, claim, damage, liability or action relating to purchases and sales of
the Securities), to which that Initial Purchaser may become subject, whether commenced or
threatened, under the Securities Act, the Exchange Act, any other federal or state statutory law or
regulation, at common law or otherwise, insofar as such loss, claim, damage, liability or action
arises out of, or is based upon:

     (i)(A) any untrue statement or alleged untrue statement of a material fact contained or
incorporated by reference in the Preliminary Offering Circular, any other Time of Sale
Information or the Final Offering Circular or in any amendment or supplement thereto or in
any written communication described in Section 5(b)(iv) hereof or Section
5(b)(v) hereof or (B) the omission or alleged omission to state in the

 

21

Preliminary
Offering Circular, any other Time of Sale Information or the Final Offering Circular or in
any amendment or supplement thereto or in any written communication described in Section
5(b)(iv) hereof or Section 5(b)(v) hereof a material fact required to be stated
therein or necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided, however,
that the Issuer, PHH and VMS shall not be liable in any such case to the extent that any
such loss, claim, damage, liability or action arises out of, or is based upon, an untrue
statement or alleged untrue statement in or omission or alleged omission from any of such
documents in reliance upon and in conformity with any Initial Purchasers’ Information,

     (ii) the breach of any representation, warranty or covenant made by the Issuer or PHH
in the TALF Certification or in any other document provided by the Issuer, VMS or PHH to the
FRBNY in connection with the Securities; or

     (iii) the breach of any obligation set forth in Section 4(s), (t) or (u) hereof,

and shall reimburse each Initial Purchaser promptly upon demand for any legal or other expenses
reasonably incurred by that Initial Purchaser in connection with investigating or defending or
preparing to defend against or appearing as a third party witness in connection with any such loss,
claim, damage, liability or action as such expenses are incurred.

          (b) Each Initial Purchaser, severally and not jointly, shall indemnify and hold harmless the
Issuer, PHH, VMS and their respective affiliates, officers, directors, employees, representatives
and agents, and each person, if any, who controls the Issuer, PHH or VMS within the meaning of the
Securities Act or the Exchange Act, from and against any loss, claim, damage or liability, joint or
several, or any action in respect thereof, to which the Issuer, PHH or VMS may become subject,
whether commenced or threatened, under the Securities Act, the Exchange Act, any other federal or
state statutory law or regulation, at common law or otherwise, insofar as such loss, claim, damage,
liability or action arises out of, or is based upon, (i) any untrue statement or alleged untrue
statement of a material fact contained in the Preliminary Offering Circular, any other Time of Sale
Information or the Final Offering Circular or in any amendment or supplement thereto or (ii) the
omission or alleged omission to state in the Preliminary Offering Circular, any other Time of Sale
Information or the Final Offering Circular or in any amendment or supplement thereto a material
fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not
misleading, but in each case only to the extent that the untrue statement or alleged untrue
statement or omission or alleged omission was made in reliance upon and in conformity with any
Initial Purchasers’ Information furnished by such Initial Purchaser, and shall reimburse the
Issuer, PHH and VMS, as the case may be, promptly upon demand for any legal or other expenses
reasonably incurred by the Issuer, PHH or VMS in connection with investigating or defending or
preparing to defend against or appearing as a third party witness in connection with any such loss,
claim, damage, liability or action as such expenses are incurred.

          (c) Promptly after receipt by an indemnified party under this Section 9 of notice of any
claim or the commencement of any action, the indemnified party shall, if a claim in respect thereof
is to be made against the indemnifying party pursuant to Section 9(a) or 9(b), notify the
indemnifying party in writing of the claim or the commencement of that action;

 

22

provided,
however, that the failure to notify the indemnifying party shall not relieve it from any
liability which it may have under this Section 9 except to the extent that it has been materially
prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and,
provided, further, that the failure to notify the indemnifying party shall not
relieve it from any liability which it may have to an indemnified party otherwise than under this
Section 9. If any such claim or action shall be brought against an indemnified party, and it shall
notify the indemnifying party thereof, the indemnifying party shall be entitled to participate
therein and, to the extent that it wishes, jointly with any other similarly notified indemnifying
party, to assume the defense thereof with counsel reasonably satisfactory to the indemnified party.
After notice from the indemnifying party to the indemnified party of its election to assume the
defense of such claim or action, the indemnifying party shall not be liable to the indemnified
party under this Section 9 for any legal or other expenses subsequently incurred by the indemnified
party in connection with the defense thereof other than reasonable costs of investigation;
provided, however, that an indemnified party shall have the right to employ its own
counsel in any such action, but the fees, expenses and other charges of such counsel for the
indemnified party will be at the expense of such indemnified party unless (1) the employment of
counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the
indemnified party has reasonably concluded (based upon advice of counsel to the indemnified party)
that there may be legal defenses available to it or other indemnified parties that are different
from or in addition to those available to the indemnifying party, (3) a conflict or potential
conflict exists (based upon advice of counsel to the indemnified party) between the indemnified
party and the indemnifying party (in which case the indemnifying party will not have the right to
direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party
has not in fact employed counsel reasonably satisfactory to the indemnified party to assume the
defense of such action within a reasonable time after receiving notice of the commencement of the
action, in each of which cases the reasonable fees, disbursements and other charges of counsel will
be at the expense of the indemnifying party or parties. It is understood that the indemnifying
party or parties shall not, in connection with any proceeding or related proceedings in the same
jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one
separate firm of attorneys (in addition to any local counsel) at any one time for all such
indemnified party or parties. Each indemnified party, as a condition of the indemnity agreements
contained in Sections 9(a) and 9(b), shall use all reasonable efforts to cooperate with the
indemnifying party in the defense of any such action or claim. No indemnifying party shall be
liable for any settlement of any such action or claim effected without its written consent (which
consent shall not be unreasonably withheld), but if settled with its written consent or if
there be a final judgment for the plaintiff in any such action or claim, the indemnifying party
agrees to indemnify and hold harmless any indemnified party from and against any loss or liability
by reason of such settlement or judgment. No indemnifying party shall, without the prior written
consent of the indemnified party (which consent shall not be unreasonably withheld), effect any
settlement of any pending or threatened proceeding in respect of which any indemnified party is or
could have been a party and indemnity could have been sought hereunder by such indemnified party
unless such settlement (i) includes an unconditional release of such indemnified party from all
liability on claims that are the subject matter of such proceeding and (ii) does not include a
statement as to or an admission of fault, culpability or a failure to act by or on behalf of any
indemnified party.

 

23

          The obligations of the Issuer, PHH, VMS and the Initial Purchasers in this Section 9 and in
Section 10 are in addition to any other liability that the Issuer, PHH, VMS or the Initial
Purchasers, as the case may be, may otherwise have, including in respect of any breaches of
representations, warranties and agreements made herein by any such party.

          10. Contribution. If the indemnification provided for in Section 9 is unavailable or
insufficient to hold harmless an indemnified party under Section 9(a) or 9(b), then each
indemnifying party shall, in lieu of indemnifying such indemnified party, contribute to the amount
paid or payable by such indemnified party as a result of such loss, claim, damage or liability, or
action in respect thereof, (i) in such proportion as shall be appropriate to reflect the relative
benefits received by the Issuer, PHH and VMS on the one hand and the Initial Purchasers on the
other from the offering of the Securities or (ii) if the allocation provided by clause (i) above is
not permitted by applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but also the relative fault of the Issuer, PHH
and VMS on the one hand and the Initial Purchasers on the other with respect to the statements or
omissions that resulted in such loss, claim, damage or liability, or action in respect thereof, as
well as any other relevant equitable considerations. The relative benefits received by the Issuer,
PHH and VMS on the one hand and the Initial Purchasers on the other with respect to such offering
shall be deemed to be in the same proportion as the total net proceeds from the offering of the
Securities purchased under this Agreement (before deducting expenses) received by or on behalf of
the Issuer on the one hand, and the total discounts and commissions received by the Initial
Purchasers with respect to the Securities purchased under this Agreement, on the other, bear to the
total gross proceeds from the sale of the Securities under this Agreement. The relative fault
shall be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a material fact relates
to the Issuer, PHH or VMS or information supplied by the Issuer, PHH or VMS on the one hand or to
any Initial Purchasers’ Information on the other, the intent of the parties and their relative
knowledge, access to information and opportunity to correct or prevent such untrue statement or
omission. The Issuer, VMS, PHH and the Initial Purchasers agree that it would not be just and
equitable if contributions pursuant to this Section 10 were to be determined by pro rata allocation
(even if the Initial Purchasers were treated as one entity for such purpose) or by any other method
of allocation that does not take into account the equitable considerations referred to herein. The
amount paid or payable by an indemnified party as a result of the loss, claim,
damage or liability, or action in respect thereof, referred to above in this Section 10 shall
be deemed to include, for purposes of this Section 10, any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or defending or preparing to
defend any such action or claim. Notwithstanding the provisions of this Section 10, no Initial
Purchaser shall be required to contribute any amount in excess of the amount by which the total
discounts and commissions received by such Initial Purchaser with respect to the Securities
purchased by it under this Agreement exceeds the amount of any damages which such Initial Purchaser
has otherwise paid or become liable to pay by reason of any untrue or alleged untrue statement or
omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation. The Initial Purchasers’ obligations to contribute
as provided in this Section 10 are several in proportion to their respective
purchase obligations
and not joint.

 

24

          11. Persons Entitled to Benefit of Agreement. This Agreement shall inure to the benefit
of and be binding upon the Initial Purchasers, the Issuer, VMS, PHH and their respective
successors. This Agreement and the terms and provisions hereof are for the sole benefit of only
those persons, except as provided in Sections 9 and 10 with respect to affiliates, officers,
directors, employees, representatives, agents and controlling persons of the Issuer, PHH, VMS and
the Initial Purchasers and in Section 4(e) with respect to holders and prospective purchasers of
the Securities. Nothing in this Agreement is intended or shall be construed to give any person,
other than the persons referred to in this Section 11, any legal or equitable right, remedy or
claim under or in respect of this Agreement or any provision contained herein.

          12. Expenses. The Issuer agrees with the Initial Purchasers to pay (a) all costs,
expenses, fees and taxes incident to and in connection with the authorization, issuance, sale,
preparation and delivery of the Securities; (b) the costs incident to the preparation, printing and
distribution of the Preliminary Offering Circular, the Final Offering Circular and any amendments
or supplements thereto; (c) the costs of reproducing and distributing each of the Transaction
Documents; (d) the costs incident to the preparation, printing and delivery of the certificates
evidencing the Securities, including stamp duties and transfer taxes, if any, payable upon issuance
of the Securities; (e) the reasonable fees and expenses of counsel to the Issuer, PHH, PHH Sub 1,
PHH Sub 2, Holdings, the Origination Trust, VMS and independent accountants; (f) the reasonable
fees and expenses of counsel to the Initial Purchasers; (g) the fees and expenses of qualifying the
Securities under the securities laws of the several jurisdictions and of preparing, printing and
distributing Blue Sky Memoranda (including related fees and expenses of counsel for the Initial
Purchasers); (h) any fees charged by rating agencies for rating the Securities; (i) the fees and
expenses of the Indenture Trustee and any paying agent (including reasonable related fees and
expenses of any counsel to such parties); (j) all expenses and application fees incurred in
connection with the approval of the Securities for book-entry transfer by DTC; (k) the fees and
expenses incurred by the Issuer, VMS and PHH in connection with any “roadshow” presentations to
investors; and (l) all other costs and expenses incident to the performance of the obligations of
the Issuer, PHH and VMS under this Agreement which are not otherwise specifically provided for in this Section 12; provided, however, that except
as provided in this Section 12 and Section 8, the Initial Purchasers shall pay their own costs and
expenses.

          13. Survival. The respective indemnities, rights of contribution, representations,
warranties and agreements of the Issuer, VMS, PHH and the Initial Purchasers contained in this
Agreement or made by or on behalf of the Issuer, Holdings, VMS, PHH or the Initial Purchasers
pursuant to this Agreement or any certificate delivered pursuant hereto shall survive the delivery
of and payment for the Securities and shall remain in full force and effect, regardless of any
termination or cancellation of this Agreement or any investigation made by or on behalf of any of
them or any of their respective affiliates, officers, directors, employees, representatives, agents
or controlling persons.

          14. Notices, etc. All statements, requests, notices and agreements hereunder shall be in
writing, and:

     (a) if to the Representatives or the Initial Purchasers, shall be delivered or sent by
mail or facsimile to J.P. Morgan Securities Inc., 270 Park Avenue, New York, New York
10017, Attention: Asset-Backed Securities (facsimile no.: (212) 834-6562);

 

25

     (b) if to the Issuer, shall be delivered or sent by mail or facsimile to 940
Ridgebrook Road, Sparks, Maryland 21152, Attention: Joseph Weikel (facsimile no.: (410)
771-2530); or

     (c) if to VMS or PHH, shall be delivered or sent by mail or facsimile to 3000
Leadenhall Road, Mount Laurel, New Jersey 07040, Attention: Mark Johnson, (facsimile no.:
(856) 917-4278);

provided that any notice to an Initial Purchaser pursuant to Section 9(c) shall also be
delivered or sent by mail to such Initial Purchaser at its address set forth on the signature page
hereof. Any such statements, requests, notices or agreements shall take effect at the time of
receipt thereof. The Issuer, VMS and PHH shall be entitled to act and rely upon any request,
consent, notice or agreement given or made on behalf of the Initial Purchasers by the
Representatives.

          15. Definition of Terms. For purposes of this Agreement, (a) the term “business day”
means any day on which the New York Stock Exchange, Inc. is open for trading, (b) except where
otherwise expressly provided, the term “affiliate” has the meaning set forth in Rule 405 under the
Securities Act and (c) the term “written communication” has the meaning set forth in Rule 405 under
the Securities Act.

          16. Initial Purchasers’ Information. The parties hereto acknowledge and agree that, for all purposes of this Agreement, the
Initial Purchasers’ Information consists solely of the following information in the Preliminary
Offering Circular and the Final Offering Circular: the last sentence on the cover page, the second
sentence of the 10th paragraph (regarding the intention to make a market for the
Securities) under “Plan of distribution” and the 11th paragraph (regarding
over-allotment and stabilizing transactions) under “Plan of distribution”.

          17. No Fiduciary Duty. Each of the Issuer, PHH and VMS acknowledge and agree that, in
connection with the offering of the Securities contemplated hereunder or any other services the
Initial Purchasers may be deemed to be providing hereunder, notwithstanding any preexisting
relationship, advisory or otherwise, between the parties or any oral representations or assurances
previously or subsequently made by the Initial Purchasers: (i) no fiduciary or agency relationship
between the Issuer, PHH, VMS and any other person, on the one hand, and the Initial Purchasers, on
the other hand, exists; (ii) the Initial Purchasers are not acting as advisor, expert or otherwise,
to the Issuer, PHH or VMS, and such relationship between the Issuer, PHH and VMS, on the one hand,
and the Initial Purchasers, on the other hand, is entirely and solely commercial, based on
arms-length negotiations; (iii) any duties and obligations that the Initial Purchasers may have to
the Issuer, PHH or VMS shall be limited to those duties and obligations specifically stated herein;
and (iv) the Initial Purchasers and their respective affiliates may have interests that differ from
those of the Issuer, PHH and VMS. The Issuer, PHH and VMS hereby waive any claims that the Issuer,
PHH or VMS may have against the Initial Purchasers with respect to any breach of fiduciary duty in
connection with the offering of the Securities.

          18. No Petition. Each Initial Purchaser hereby agrees that, prior to the date that is one
year and one day after payment in full of all obligations under the Indenture, it will not
institute against, or join with any other Person in instituting against, the Issuer any bankruptcy,

 

26

reorganization, arrangement, insolvency or liquidation proceedings, or other similar proceeding,
under any federal or state bankruptcy or similar law.

          19. Governing Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of New York.

          20. Counterparts. This Agreement may be executed in one or more counterparts (which may
include counterparts delivered by facsimile) and, if executed in more than one counterpart, the
executed counterparts shall each be deemed to be an original, but all such counterparts shall
together constitute one and the same instrument.

          21. Amendments. No amendment or waiver of any provision of this Agreement, nor any consent or approval to
any departure therefrom, shall in any event be effective unless the same shall be in writing and
signed by the parties hereto.

          22. Headings. The headings herein are inserted for convenience of reference only and are
not intended to be part of, or to affect the meaning or interpretation of, this Agreement.

          23. Limitation on Representations and Covenants of the Issuer, PHH and VMS

          The representations, covenants and agreements made by the Issuer, PHH and VMS in this
Agreement to any Primary Dealer shall only extend to a Primary Dealer in connection with the
performance by such Primary Dealer of its obligations under TALF, and do not extend to and may not
be relied upon by any direct or indirect purchaser or owner of the Securities, or any other Person
claiming by or through any such purchaser or owner or any third party beneficiary, for any purpose
or in any circumstance, whether on the theory that a Primary Dealer has acted or acts as their
agent or otherwise. For the avoidance of doubt, the limitations contained in this Section 23 shall
apply only to Primary Dealers in their capacity as such and shall not be construed to limit the
representations, covenants and agreements made herein by the Issuer, PHH or VMS to any Initial
Purchaser in its capacity as an Initial Purchaser.

 

 

          If the foregoing is in accordance with your understanding of our agreement, kindly sign and
return to us a counterpart hereof, whereupon this instrument will become a binding agreement among
the Issuer, VMS, PHH and the several Initial Purchasers in accordance with its terms.

	 	 	 	 	 
	 	Very truly yours,

CHESAPEAKE FUNDING LLC

 	 
	 	By:  	/s/ Mark E. Johnson
 	 
	 	 	Name:  	Mark E. Johnson 	 
	 	 	Title:  	Senior Vice President and Treasurer 	 
	 
	 	PHH VEHICLE MANAGEMENT SERVICES, LLC

 	 
	 	By:  	/s/ Mark E. Johnson
 	 
	 	 	Name:  	Mark E. Johnson 	 
	 	 	Title:  	Senior Vice President and Treasurer 	 
	 
	 	PHH CORPORATION

 	 
	 	By:  	/s/ Terence Edwards
 	 
	 	 	Name:  	Terence Edwards 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 

[Purchase Agreement]

 

 

	 	 	 	 	 
	Accepted:

J.P. MORGAN SECURITIES INC.

 	 
	By:  	/s/ Marquis Gilmore
 	 
	 	Name:  	Marquis Gilmore 	 
	 	Title:  	Managing Director 	 

For itself and as Representative of the

several Initial Purchasers

Address:

J.P. Morgan Securities Inc.

270 Park Avenue

New York, New York 10017

Attn: Marquis Gilmore, Managing Director

BANC OF AMERICA SECURITIES LLC

	 	 	 	 	 
	By:  	/s/ Bill Heskett
 	 
	 	Name:  	Bill Heskett 	 
	 	Title:  	Managing Director 	 

For itself and as Representative of the

several Initial Purchasers

Address:

Bank of America Tower

One Bryant Park

New York, NY 10036

Attn: William C. Heskett, Managing Director

[Purchase Agreement]

 

 

CITIGROUP GLOBAL MARKETS INC.

	 	 	 	 	 
	By:  	/s/ Steven Vierengel
 	 
	 	Name:  	Steven Vierengel 	 
	 	Title:  	 	 

For itself and as Representative of the

several Initial Purchasers

Address:

Citigroup Global Markets Inc.

388 Greenwich Street, 19th Floor

New York, New York 10013

[Purchase Agreement]

 

 

SCHEDULE 1

	 	 	 	 	 
	 	 	Principal Amount of
	Initial Purchasers	 	Securities
	J.P. Morgan Securities Inc.
	 	$	[***]	 
	Banc of America Securities LLC
	 	$	[***]	 
	Citigroup Global Markets Inc.
	 	$	[***]	 
	Wachovia Capital Markets, LLC
	 	$	[***]	 
	Scotia Capital (USA) Inc.
	 	$	[***]	 
	RBS Securities Inc.
	 	$	[***]	 
	 
	TOTAL
	 	$	1,000,000,000.00	 

 

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

 

 

ANNEX A

Additional Time of Sale Information

	1.	 	Term sheet containing the terms of the securities, substantially in the form of Annex B.

	 
	2.	 	Roadshow presentation dated May 2009.

 

 

ANNEX B

Pricing Term Sheet

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Jt Leads/Books: JPM, BAS, Citi	 	 	 	100% Pot	 	144A	 	 	 	 	 	 
	Co Managers:    RBS,Scotia, Wachovia	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CL

	 	SIZE
	 	WAL
	 	M/S
	 	PWIN
	 	Exp Final
	 	LGL
	 	Pxg
	 	 	$	 
	A

	 	1bln
	 	1.92yrs
	 	Aaa/AAA
	 	13-34mths
	 	04/15/12
	 	12/15/20
	 	[***]
	 	 	100.00	 

HAIRCUT: 10%

TALF Eligible: Yes

144A: Yes

Expected Pricing: Pxd

Expected Settlement: 6/09/09

 

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

 

EXHIBIT F

TERM ASSET-BACKED SECURITIES FACILITY UNDERTAKING

June 9, 2009

          This Term Asset-Backed Securities Loan Facility Undertaking (this “Undertaking”) is
executed as of the date first written above by PHH Corporation (the “Sponsor”) and
Chesapeake Funding LLC (the “Issuer” and, together with the Sponsor, the “Issuer
Parties”). Reference is hereby made to (i) the final offering circular, dated June 2, 2009 (the
“Offering Memorandum”), relating to $1,000,000,000 aggregate principal amount of Floating
Rate Asset Backed Notes (the “Specified Securities”), issued by the Issuer, (ii) each
Master Loan and Security Agreement (the “MLSA”), by and among the Federal Reserve Bank of
New York, as lender (“Lender”), the primary dealers party thereto (the “Primary
Dealers” and each, individually, a “Primary Dealer”) and The Bank of New York Mellon,
as administrator and as custodian, executed in connection with the Term Asset-Backed Securities
Loan Facility (the “TALF Program”), and (iii) the certifications and indemnities given by
the Issuer Parties to Lender in connection with the Specified Securities (the “Issuer
Documents”).

          1. Definitions. Capitalized terms used but not defined herein shall have the meanings
specified in the MLSA. In addition, as used herein, the following terms shall have the following
meanings (such definition to be applicable to both the singular and plural forms of such terms):

          “Dealer Indemnified Party” means a Relevant Dealer and each person, if any, who
controls any Relevant Dealer within the meaning of Section 15 of the Securities Act of 1933,
as amended.

          “Relevant Dealer” means any Primary Dealer that is acting as agent on behalf of
a Borrower with respect to a Relevant Loan.

          “Relevant Loan” means any Loan for which any of the Specified Securities have
been pledged to Lender as Collateral.

          “TALF Provisions” means the portions of the Offering Memorandum that describe,
or are relevant to, the qualification of the Specified Securities as Eligible Collateral,
including without limitation the descriptions of the terms of the Specified Securities and
the assets generating collections or other funds from which the Specified Securities are to
be paid.

          2. Representations and Warranties. The Issuer Parties hereby represent, warrant and
agree, for the benefit of each Relevant Dealer, as follows:

          (a) Each Specified Security constitutes Eligible Collateral;

 

2

          (b) The certifications contained in the Issuer Documents are true and correct, and the
Issuer Parties will promptly pay and perform their obligations under the Issuer Documents.

          (c) No statement or information contained in the TALF Provisions is untrue as to any
material fact or omits any material fact necessary to make the same not misleading.

          3. Indemnity.

          (a) The Issuer Parties shall, jointly and severally agree, upon demand from a Relevant
Dealer, to reimburse the Dealer Indemnified Parties for, to indemnify and defend the Dealer
Indemnified Parties against, and hold Dealer Indemnified Parties harmless from, any loss, claim,
damage, liability and expense (including reasonable attorneys’ fees, court costs and expenses of
litigation) incurred by a Dealer Indemnified Party in connection with an Issuer Party’s breach of
this Undertaking or the Issuer Documents; provided, however, that an Issuer Party shall not be
liable to a Dealer Indemnified Party for such Dealer Indemnified Party’s gross negligence, willful
misconduct or fraudulent actions as determined by a court of competent jurisdiction in a final,
nonappealable order.

          (b) Each Dealer Indemnified Party shall give the Sponsor written notice of any claim that
such Dealer Indemnified Party may have under this indemnity. No Issuer Party shall be liable for
any claim that is compromised or settled by a Dealer Indemnified Party without the prior written
consent of the Sponsor, provided that Sponsor responded promptly and in such Dealer
Indemnified Party’s judgment, adequately, to such Dealer Indemnified Party’s notice of such claim.
This indemnity remains an obligation of each Issuer Party notwithstanding termination of the MLSA
or the TALF Program or repayment in full of the Relevant Loans, and is binding upon each Issuer
Party’s successors and assigns. Upon written demand from a Dealer Indemnified Party, each Issuer
Party shall pay promptly amounts owed under this indemnity free and clear of any right of offset,
counterclaim or other deduction.

          (c) Each Dealer Indemnified Party’s right to indemnification hereunder shall be enforceable
against each Issuer Party directly, without any obligation to first proceed against any third party
for whom such Dealer Indemnified Party may act, and irrespective of any rights or recourse that
such Issuer Party may have against any such third party.

          4. Acknowledgement. The Issuer Parties hereby acknowledge (a) the existence of the
MLSA and the terms thereof and (b) that the Relevant Dealers are obtaining the Relevant Loans,
pledging the Specified Securities as collateral therefor and undertaking obligations, in each case
as agents on behalf of the Borrowers with respect thereto in reliance on the representations,
warranties, covenants and indemnities of the Issuer Parties set forth in this Undertaking. This
Undertaking is for the sole benefit of the Dealer Indemnified Parties in connection with the
performance by a Related Dealer of its obligations with respect to the TALF Program and not in its
capacity as an underwriter of the Specified Securities, and may not be relied upon by (i) the
Dealer Indemnified Parties for any other purpose or (ii) any direct or indirect purchaser or owner
of the Specified Securities, or any other Person claiming by or

 

3

through any such purchaser or owner or any third party beneficiary, for any purpose or in any
circumstance, whether on the theory that the Primary Dealers act as their agents or otherwise.

     IN WITNESS WHEREOF, the Issuer Parties have duly executed this Undertaking as of the day and
year first written above.

	 	 	 	 	 
	 	CHESAPEAKE FUNDING LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	PHH CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:exv10w1

Exhibit 10.1

 

SYBASE, INC.

3.50% CONVERTIBLE SENIOR NOTES DUE 2029

 

INDENTURE

DATED AS OF AUGUST 4, 2009

 

U.S. BANK NATIONAL ASSOCIATION,

AS TRUSTEE

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	1	 
	 
	 	 	 	 
	SECTION 1.1. DEFINITIONS
	 	 	1	 
	SECTION 1.2. OTHER DEFINITIONS
	 	 	6	 
	SECTION 1.3. TRUST INDENTURE ACT PROVISIONS
	 	 	7	 
	SECTION 1.4. RULES OF CONSTRUCTION
	 	 	8	 
	 
	 	 	 	 
	ARTICLE 2 THE SECURITIES
	 	 	8	 
	 
	 	 	 	 
	SECTION 2.1. FORM AND DATING
	 	 	8	 
	SECTION 2.2. EXECUTION AND AUTHENTICATION
	 	 	10	 
	SECTION 2.3. REGISTRAR, PAYING AGENT AND CONVERSION AGENT
	 	 	11	 
	SECTION 2.4. PAYING AGENT TO HOLD MONEY IN TRUST
	 	 	11	 
	SECTION 2.5. SECURITYHOLDER LISTS
	 	 	12	 
	SECTION 2.6. TRANSFER AND EXCHANGE
	 	 	12	 
	SECTION 2.7. REPLACEMENT SECURITIES
	 	 	13	 
	SECTION 2.8. OUTSTANDING SECURITIES
	 	 	14	 
	SECTION 2.9. TREASURY SECURITIES
	 	 	14	 
	SECTION 2.10. TEMPORARY SECURITIES
	 	 	14	 
	SECTION 2.11. CANCELLATION
	 	 	15	 
	SECTION 2.12. LEGEND; ADDITIONAL TRANSFER AND EXCHANGE REQUIREMENTS
	 	 	15	 
	SECTION 2.13. CUSIP NUMBERS
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 3 REDEMPTION AND PURCHASE
	 	 	17	 
	 
	 	 	 	 
	SECTION 3.1. TO REDEEM; NOTICE TO TRUSTEE
	 	 	17	 
	SECTION 3.2. SELECTION OF SECURITIES TO BE REDEEMED
	 	 	18	 
	SECTION 3.3. NOTICE OF REDEMPTION
	 	 	18	 
	SECTION 3.4. EFFECT OF NOTICE OF REDEMPTION
	 	 	19	 
	SECTION 3.5. DEPOSIT OF REDEMPTION PRICE
	 	 	19	 
	SECTION 3.6. SECURITIES REDEEMED IN PART
	 	 	20	 
	SECTION 3.7. PURCHASE OF SECURITIES AT OPTION OF THE HOLDER
UPON FUNDAMENTAL CHANGE
	 	 	20	 
	SECTION 3.8. EFFECT OF FUNDAMENTAL CHANGE PURCHASE NOTICE
	 	 	23	 
	SECTION 3.9. DEPOSIT OF FUNDAMENTAL CHANGE PURCHASE PRICE
	 	 	24	 
	SECTION 3.10. REPAYMENT TO THE COMPANY
	 	 	24	 
	SECTION 3.11. PURCHASE OF SECURITIES AT OPTION OF THE HOLDER ON
SPECIFIED DATES
	 	 	24	 
	SECTION 3.12. SECURITIES PURCHASED IN PART
	 	 	27	 
	SECTION 3.13. COMPLIANCE WITH SECURITIES LAWS UPON PURCHASE
OF SECURITIES
	 	 	28	 
	SECTION 3.14. PURCHASE OF SECURITIES
	 	 	28	 
	 
	 	 	 	 
	ARTICLE 4 CONVERSION
	 	 	28	 
	 
	 	 	 	 
	SECTION 4.1. CONVERSION PRIVILEGE AND CONVERSION RATE
	 	 	28	 

 

 

	 	 	 	 	 
	 	 	Page
	SECTION 4.2. CONVERSION PROCEDURE
	 	 	33	 
	SECTION 4.3. FRACTIONAL SHARES
	 	 	35	 
	SECTION 4.4. TAXES ON CONVERSION
	 	 	35	 
	SECTION 4.5. COMPANY TO PROVIDE STOCK
	 	 	35	 
	SECTION 4.6. ADJUSTMENT OF CONVERSION RATE
	 	 	36	 
	SECTION 4.7. NO ADJUSTMENT
	 	 	42	 
	SECTION 4.8. ADJUSTMENT FOR TAX PURPOSES
	 	 	43	 
	SECTION 4.9. NOTICE OF ADJUSTMENT
	 	 	43	 
	SECTION 4.10. NOTICE OF CERTAIN TRANSACTIONS
	 	 	43	 
	SECTION 4.11. EFFECT OF RECLASSIFICATION, CONSOLIDATION, MERGER
OR SALE ON CONVERSION PRIVILEGE
	 	 	44	 
	SECTION 4.12. TRUSTEE’S DISCLAIMER
	 	 	45	 
	SECTION 4.13. VOLUNTARY INCREASE
	 	 	46	 
	SECTION 4.14. PAYMENT OF CASH IN LIEU OF COMMON STOCK.
	 	 	46	 
	SECTION 4.15. RIGHTS PLAN
	 	 	47	 
	 
	 	 	 	 
	ARTICLE 5 COVENANTS
	 	 	47	 
	 
	 	 	 	 
	SECTION 5.1. PAYMENT OF SECURITIES
	 	 	47	 
	SECTION 5.2. SEC REPORTS
	 	 	48	 
	SECTION 5.3. COMPLIANCE CERTIFICATES
	 	 	48	 
	SECTION 5.4. FURTHER INSTRUMENTS AND ACTS
	 	 	48	 
	SECTION 5.5. MAINTENANCE OF CORPORATE EXISTENCE
	 	 	48	 
	SECTION 5.6. RULE 144A INFORMATION REQUIREMENT
	 	 	48	 
	SECTION 5.7. STAY, EXTENSION AND USURY LAWS
	 	 	49	 
	SECTION 5.8. ADDITIONAL INTEREST; RECEIPT OF REQUEST TO DELEGEND
THE SECURITIES
	 	 	49	 
	 
	 	 	 	 
	ARTICLE 6 CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
	 	 	50	 
	 
	 	 	 	 
	SECTION 6.1. COMPANY MAY CONSOLIDATE, ETC., ONLY ON CERTAIN TERMS
	 	 	50	 
	SECTION 6.2. SUCCESSOR SUBSTITUTED
	 	 	51	 
	 
	 	 	 	 
	ARTICLE 7 DEFAULT AND REMEDIES
	 	 	51	 
	 
	 	 	 	 
	SECTION 7.1. EVENTS OF DEFAULT
	 	 	51	 
	SECTION 7.2. ACCELERATION
	 	 	53	 
	SECTION 7.3. OTHER REMEDIES
	 	 	55	 
	SECTION 7.4. WAIVER OF DEFAULTS AND EVENTS OF DEFAULT
	 	 	55	 
	SECTION 7.5. CONTROL BY MAJORITY
	 	 	55	 
	SECTION 7.6. LIMITATIONS ON SUITS
	 	 	55	 
	SECTION 7.7. RIGHTS OF HOLDERS TO RECEIVE PAYMENT AND TO CONVERT
	 	 	56	 
	SECTION 7.8. COLLECTION SUIT BY TRUSTEE
	 	 	56	 
	SECTION 7.9. TRUSTEE MAY FILE PROOFS OF CLAIM
	 	 	56	 
	SECTION 7.10. PRIORITIES
	 	 	57	 
	SECTION 7.11. UNDERTAKING FOR COSTS
	 	 	57	 
	 
	 	 	 	 
	ARTICLE 8 TRUSTEE
	 	 	57	 
	 
	 	 	 	 
	SECTION 8.1. DUTIES OF TRUSTEE
	 	 	57	 

 

 

	 	 	 	 	 
	 	 	Page
	SECTION 8.2. RIGHTS OF TRUSTEE
	 	 	58	 
	SECTION 8.3. INDIVIDUAL RIGHTS OF TRUSTEE
	 	 	59	 
	SECTION 8.4. TRUSTEE’S DISCLAIMER
	 	 	59	 
	SECTION 8.5. NOTICE OF DEFAULT OR EVENTS OF DEFAULT
	 	 	59	 
	SECTION 8.6. REPORTS BY TRUSTEE TO HOLDERS
	 	 	60	 
	SECTION 8.7. COMPENSATION AND INDEMNITY
	 	 	60	 
	SECTION 8.8. REPLACEMENT OF TRUSTEE
	 	 	61	 
	SECTION 8.9. SUCCESSOR TRUSTEE BY MERGER, ETC
	 	 	62	 
	SECTION 8.10. ELIGIBILITY; DISQUALIFICATION
	 	 	62	 
	SECTION 8.11. PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY
	 	 	62	 
	 
	 	 	 	 
	ARTICLE 9 SATISFACTION AND DISCHARGE OF INDENTURE
	 	 	62	 
	 
	 	 	 	 
	SECTION 9.1. SATISFACTION AND DISCHARGE OF INDENTURE
	 	 	62	 
	SECTION 9.2. APPLICATION OF TRUST MONEY
	 	 	63	 
	SECTION 9.3. REPAYMENT TO COMPANY
	 	 	63	 
	SECTION 9.4. REINSTATEMENT
	 	 	64	 
	 
	 	 	 	 
	ARTICLE 10 AMENDMENTS, SUPPLEMENTS AND WAIVERS
	 	 	64	 
	 
	 	 	 	 
	SECTION 10.1. WITHOUT CONSENT OF HOLDERS
	 	 	64	 
	SECTION 10.2. WITH CONSENT OF HOLDERS
	 	 	65	 
	SECTION 10.3. COMPLIANCE WITH TRUST INDENTURE ACT
	 	 	66	 
	SECTION 10.4. REVOCATION AND EFFECT OF CONSENTS
	 	 	66	 
	SECTION 10.5. NOTATION ON OR EXCHANGE OF SECURITIES
	 	 	66	 
	SECTION 10.6. TRUSTEE TO SIGN AMENDMENTS, ETC
	 	 	66	 
	SECTION 10.7. EFFECT OF SUPPLEMENTAL INDENTURES
	 	 	67	 
	 
	 	 	 	 
	ARTICLE 11 MISCELLANEOUS
	 	 	67	 
	 
	 	 	 	 
	SECTION 11.1. TRUST INDENTURE ACT CONTROLS
	 	 	67	 
	SECTION 11.2. NOTICES
	 	 	67	 
	SECTION 11.3. COMMUNICATIONS BY HOLDERS WITH OTHER HOLDERS
	 	 	68	 
	SECTION 11.4. CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT
	 	 	68	 
	SECTION 11.5. RECORD DATE FOR VOTE OR CONSENT OF SECURITYHOLDERS
	 	 	69	 
	SECTION 11.6. RULES BY TRUSTEE, PAYING AGENT, REGISTRAR AND CONVERSION AGENT
	 	 	69	 
	SECTION 11.7. LEGAL HOLIDAYS
	 	 	69	 
	SECTION 11.8. GOVERNING LAW
	 	 	70	 
	SECTION 11.9. NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS
	 	 	70	 
	SECTION 11.10. NO RECOURSE AGAINST OTHERS
	 	 	70	 
	SECTION 11.11. SUCCESSORS
	 	 	70	 
	SECTION 11.12. MULTIPLE COUNTERPARTS
	 	 	70	 
	SECTION 11.13. SEPARABILITY
	 	 	70	 
	SECTION 11.14. TABLE OF CONTENTS, HEADINGS, ETC
	 	 	70	 

 

 

CROSS-REFERENCE TABLE*

	 	 	 	 	 
	TIA	 	 	 	INDENTURE
	SECTION	 	 	 	SECTION
	 	 	 
	 	 
	Section	 	310
	 	11.1
	 	 	310(a)(1)
	 	8.10
	 	 	(a)(2)
	 	8.10
	 	 	(a)(3)
	 	N.A.**
	 	 	(a)(4)
	 	N.A.
	 	 	(a)(5)
	 	8.10
	 	 	(b)
	 	8.10
	 	 	(c)
	 	N.A.
	Section	 	311
	 	11.1
	 	 	311(a)
	 	8.11
	 	 	(b)
	 	8.11
	 	 	(c)
	 	N.A.
	Section	 	312
	 	11.1
	 	 	(a)
	 	2.5
	 	 	(b)
	 	11.3
	 	 	(c)
	 	11.3
	Section	 	313
	 	11.1
	 	 	313(a)
	 	8.6(a)
	 	 	(b)(1)
	 	N.A.
	 	 	(b)(2)
	 	8.6(a)
	 	 	(c)
	 	8.6(a)
	 	 	(d)
	 	N.A.
	Section	 	314
	 	11.1
	 	 	314(a)
	 	5.2
	 	 	(b)
	 	N.A.
	 	 	(c)(1)
	 	11.4(a)
	 	 	(c)(2)
	 	11.4(a)
	 	 	(c)(3)
	 	N.A.
	 	 	(d)
	 	N.A.
	 	 	(e)
	 	11.4(b)
	 	 	(f)
	 	N.A.
	Section	 	315
	 	11.1
	Section	 	316
	 	11.1
	Section	 	317
	 	11.1
	Section	 	318(c)
	 	11.1

 

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

 

 

          THIS INDENTURE dated as of August 4, 2009 is between Sybase, Inc., a corporation incorporated
under the laws of the State of Delaware (the “Company”), and U.S. Bank National
Association, a national banking association organized and existing under the laws of the United
States, as Trustee (the “Trustee”).

          In consideration of the purchase of the Securities (as defined herein) by the Holders
thereof, both parties agree as follows for the benefit of the other and for the equal and ratable
benefit of the Holders of the Company’s 3.50% Convertible Senior Notes Due 2029.

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

          SECTION 1.1. DEFINITIONS.

          “Additional Interest” means the additional interest that may be payable pursuant to
Section 5.8 and Section 7.2(b); provided that neither Section 5.8 nor Section 7.2(b) shall preclude
interest from accruing simultaneously under the other Section. All references herein to interest
accrued or payable as of any date shall include any Additional Interest accrued or payable as of
such date as provided in either Section 5.8 or Section 7.2(b).

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

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

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

          “Board of Directors” means either the board of directors of the Company or any
committee of the Board of Directors authorized to act for it with respect to this Indenture;
provided that, for purposes of Section 3.7(b)(3) hereof, such term shall mean the board of
directors of the Company and not any committee thereof.

          “Business Day” means any weekday that is not a day on which banking institutions in
the City of New York are authorized or obligated by law or executive order to close or be closed.

          “Capital Stock” of any Person means any and all shares, interests, rights to
purchase, warrants, options, participations or other equivalents of or interests in (however
designated) equity of such Person, but excluding any debt securities convertible into such equity.

1

 

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

          “Certificated Security” means a Security that is in substantially the form attached
hereto as Exhibit A that does not include the information or the schedule called for by
footnotes 1 and 3 thereof.

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

          “Closing Price” means the last reported sale price per share of Common Stock (or, if
no last sale price is reported, the average of the bid and ask prices per share or, if more than
one in either case, the average of the average bid and the average ask prices per share) on such
date reported by the New York Stock Exchange or, if the Common Stock is not quoted on the New York
Stock Exchange, as reported by the principal national or regional securities exchange or quotation
system on which the Common Stock is listed. If the Common Stock is not listed for trading on a U.S.
national or regional securities exchange on the relevant date, the “closing price” will be the last
quoted bid price for the Common Stock in the over-the-counter market on the relevant date as
reported by Pink Sheets LLC or similar organization. If the Common Stock is not so quoted, the
“closing price” will be the average of the mid-point of the last bid and ask prices for the Common
Stock on the relevant date from each of at least three nationally recognized independent investment
banking firms selected by the Company for this purpose.

          “Common Stock” means the common stock of the Company, $0.001 par value per share, as
it exists on the date of this Indenture and any shares of any class or classes of capital stock of
the Company resulting from any reclassification or reclassifications thereof and which have no
preference in respect of dividends or of amounts payable in the event of any voluntary or
involuntary liquidation, dissolution or winding-up of the Company and which are not subject to
redemption by the Company; provided, however, that if at any time there shall be more than one such
resulting class, the shares of each such class then so issuable on conversion of Securities shall
be substantially in the proportion which the total number of shares of such class resulting from
all such reclassifications bears to the total number of shares of all such classes resulting from
all such reclassifications.

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

          “Conversion Price” per share of Common Stock as of any day means the result obtained
by dividing (i) $1,000 by (ii) the then applicable Conversion Rate.

          “Conversion Rate” means the rate at which the Securities are convertible, which rate
shall be initially 20.8836 shares of Common Stock for each $1,000 principal amount of Securities,
as adjusted from time to time pursuant to the provisions of this Indenture.

          “Conversion Reference Period” means:

          (i) if the Company has specified a Redemption Date, for Securities that are converted on or
after the 25th Scheduled Trading Day prior to the redemption of the Securities, the 20
consecutive Trading Days

2

 

beginning on the 22nd Scheduled Trading Day prior to the Redemption Date (in the
case of a partial redemption, this clause (i) shall only apply to those Securities that are subject
to redemption);

          (ii) for Securities that are converted on or after the 25th Scheduled Trading Day
prior to the Final Maturity Date, the 20 consecutive Trading Days beginning on the 22nd
Scheduled Trading Day prior to the Final Maturity Date; and

          (iii) in all other instances, the 20 consecutive Trading Days beginning on the third Trading
Day following the Conversion Date.

          “Conversion Value” means, for each $1,000 principal amount of Securities converted, an
amount equal to the product of (i) the Conversion Rate in effect on the Conversion Date and (ii)
the average of the Closing Prices of the Company’s Common Stock for each of the 20 consecutive
Trading Days of the Conversion Reference Period; provided that, after the consummation of a
Fundamental Change in which the consideration is comprised entirely of cash and the Securities
become convertible solely into cash, the amount in clause (ii) of this definition shall be the cash
price per share received by holders of the Company’s Common Stock in such Fundamental Change; and
provided further, that in the event of any conversion rate adjustment during the Conversion
Reference Period, from and after the effective date of such adjustment, the Conversion Rate for
purposes of clause (i) of this definition shall mean the Conversion Rate as so adjusted.

          “Corporate Trust Office” means the principal office of the Trustee at which at any
particular time its corporate trust business shall be administered which office at the date of the
execution of this Indenture is located at 633 West Fifth Street, 24th Floor, Los Angeles, CA 90071;
Attention: Corporate Trust Services (Sybase, Inc. — 3.50% Convertible Senior Notes due 2029) or
at any other time at such other address as the Trustee may designate from time to time by notice to
the Company.

          “Daily Share Amount” means, for each Trading Day of the Conversion Reference Period
and for each $1,000 principal amount of Securities surrendered for conversion, a number of shares
of Common Stock (but in no event less than zero) equal to (i) the difference between (a) the
Closing Price on such Trading Day multiplied by the Conversion Rate in effect on the Conversion
Date, appropriately adjusted to take into account the occurrence on such Trading Day of any event
which would require an adjustment pursuant to Section 4.6, and (b) $1,000, divided by (ii) the
Closing Price on such Trading Day multiplied by 20.

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

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

          “Final Maturity Date” means August 15, 2029.

          “GAAP” means generally accepted accounting principles in the United States of America
as in effect from time to time, including those set forth in (1) the opinions and pronouncements of
the Accounting Principles Board of the American Institute of Certified Public Accountants, (2) the
statements and pronouncements of the Financial Accounting Standards Board, (3) such other
statements by such other entity as approved by a significant segment of the accounting profession
and (4) the rules and regulations of the

3

 

SEC governing the inclusion of financial statements (including pro forma financial statements)
in registration statements filed under the Securities Act and periodic reports required to be filed
pursuant to Section 13 of the Exchange Act, including opinions and pronouncements in staff
accounting bulletins and similar written statements from the accounting staff of the SEC.

          “Global Security” means a Security in global form that is in substantially the form
attached hereto as Exhibit A and that includes the information and schedule called for by
footnotes 1 and 3 thereof and which is deposited with the Depositary or its custodian and
registered in the name of the Depositary or its nominee.

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

          “Indenture” means this Indenture as amended or supplemented from time to time pursuant
to the terms of this Indenture.

          “Initial Purchasers” means Merrill Lynch, Pierce, Fenner & Smith Incorporated and J.P
Morgan Securities Inc.

          “Interest Payment Date” means February 15 and August 15 of each year, commencing
February 15, 2010.

          “Officer” means the Chairman or any Co-Chairman of the Board of Directors, any Vice
Chairman of the Board of Directors, the Chief Executive Officer, the President, any Vice President,
the Chief Financial Officer, the Controller, the Secretary, any Assistant Controller or any
Assistant Secretary of the Company.

          “Officers’ Certificate” means a certificate signed by two Officers; provided, however,
that for purposes of Sections 4.11 and 5.3, “Officers’ Certificate” means a certificate
signed by the principal executive officer, principal financial officer or principal accounting
officer of the Company and by one other Officer.

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

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

          “Person” or “person” means any individual, corporation, partnership, limited
liability company, joint venture, association, joint-stock company, trust, unincorporated
organization, government or any agency or political subdivision thereof or any other entity.

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

          “Redemption Date” when used with respect to any Security to be redeemed, means the
date fixed by the Company for such redemption pursuant to Section 3.

          “Regular Record Date” means, with respect to each Interest Payment Date, the February
1 or August 1, as the case may be, next preceding such Interest Payment Date.

4

 

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

          “Restricted Security” means a Security required to bear the restricted legend called
for by footnote 2 in the form of Security set forth in Exhibit A of this Indenture.

          “Rule 144” means Rule 144 under the Securities Act or any successor to such Rule.

          “Rule 144A” means Rule 144A under the Securities Act or any successor to such Rule.

          “SEC” means the Securities and Exchange Commission.

          “Securities” means the 3.50% Convertible Senior Notes due 2029 or any of them (each, a
“Security”), as amended or supplemented from time to time, that are issued under this Indenture.

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

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

          “Significant Subsidiary” means, in respect of any Person, a Subsidiary of such Person
that would constitute a “significant subsidiary” as such term is defined under Rule 1-02 of
Regulation S-X under the Securities Act.

          “Subsidiary” means, in respect of any Person, any corporation, association,
partnership or other business entity of which more than 50% of the total voting power of shares of
Capital Stock or other interests (including partnership interests) entitled (without regard to the
occurrence of any contingency) to vote in the election of directors, managers, general partners or
trustees thereof is at the time owned or controlled, directly or indirectly, by (i) such Person;
(ii) such Person and one or more Subsidiaries of such Person; or (iii) one or more Subsidiaries of
such Person.

          “TIA” means the Trust Indenture Act of 1939, as amended, and the rules and regulations
thereunder as in effect on the date of this Indenture, except as provided in Section 10.3, and
except to the extent any amendment to the Trust Indenture Act expressly provides for application of
the Trust Indenture Act as in effect on another date.

          “Trading Day” means a day during which trading in securities generally occurs on the
New York Stock Exchange (or, if the Common Stock is not traded on the New York Stock Exchange, on
the principal other market on which the Common Stock is then traded), other than a day on which the
material suspension of or limitation on trading is imposed that affects either the New York Stock
Exchange (or, if applicable, such other market) in its entirety or only the shares of the Company’s
Common Stock (by reason of movements in price exceeding limits permitted by the relevant market on
which the shares are traded or otherwise) or on which the New York Stock Exchange (or, if
applicable, such other market) cannot clear the transfer of the Company’s shares due to an event
beyond the Company’s control.

5

 

          “Trading Price” of the Securities on any date of determination means the average of
the secondary market bid quotations per Security obtained by the Trustee for $5,000,000 principal
amount of the Securities at approximately 3:30 p.m., New York City time, on such determination date
from two independent nationally recognized securities dealers the Company selects, which may
include either or both of the Initial Purchasers, provided that if at least two such bids cannot be
reasonably obtained by the Trustee, but one such bid can be reasonably obtained by the Trustee,
this one bid will be used. If the Trustee cannot reasonably obtain at least one bid for $5,000,000
principal amount of the Securities from a nationally recognized securities dealer or if in the
Company’s reasonable judgment, the bid quotations are not indicative of the secondary market value
of the Securities, then the Trading Price of the Securities will be deemed to be less than 98% of
the then current Conversion Rate multiplied by the Closing Price of Common Stock on such
determination date.

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

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

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

          SECTION 1.2. OTHER DEFINITIONS.

	 	 	 	 	 
	Term	 	Defined in Section
	“Additional Common Stock”

	 	 	4.1	(i)
	“Agent Members”

	 	 	2.1	(b)
	“Bankruptcy Law”

	 	 	7.1	(a)
	“Cash Percentage”

	 	 	4.14	(b)
	“Clause A Distribution”

	 	 	4.6	(a)(3)
	“Clause B Distribution”

	 	 	4.6	(a)(3)
	“Clause C Distribution”

	 	 	4.6	(a)(3)
	“Company Fundamental Change Notice”

	 	 	3.7	(d)
	“Company Order”

	 	 	2.2	(e)
	“Company Put Right Notice”

	 	 	3.11	(b)
	“Conversion Agent”

	 	 	2.3	(a)
	“Conversion Date”

	 	 	4.2	(a)
	“Conversion Settlement Period”

	 	 	4.2	(a)
	“Current Market Price”

	 	 	4.6	(a)(8)
	“Custodian”

	 	 	7.1	(a)
	“DTC”

	 	 	2.1	(a)
	“Depositary”

	 	 	2.1	(a)
	“Distribution Notice”

	 	 	4.1	(b)
	“Effective Date”

	 	 	4.1	(i)
	“Event of Default”

	 	 	7.1	(a)
	“Ex-Dividend Date”

	 	 	4.6	(c)
	“Fundamental Change”

	 	 	3.7	(b)

6

 

	 	 	 	 	 
	Term	 	Defined in Section
	“Fundamental Change Purchase Date”

	 	 	3.7	 
	“Fundamental Change Purchase Notice”

	 	 	3.7	(e)
	“Fundamental Change Purchase Price”

	 	 	3.7	 
	“Legal Holiday”

	 	 	11.7	 
	“Legend”

	 	 	2.12	(a)
	“Merger Notice”

	 	 	4.1	(c)
	“Non-Stock Fundamental Change”

	 	 	4.1	(i)
	“Non-Stock Fundamental Change Notice”

	 	 	4.1	(i)
	“Notice of Default”

	 	 	7.1	(b)
	“Paying Agent”

	 	 	2.3	(a)
	“Primary Registrar”

	 	 	2.3	(a)
	“Purchase Agreement”

	 	 	2.1	 
	“Put Right Purchase Date”

	 	 	3.11	(a)
	“Put Right Purchase Notice”

	 	 	3.11	(e)
	“Put Right Purchase Price”

	 	 	3.11	(a)
	“QIB”

	 	 	2.1	(a)
	“Redemption Price”

	 	 	3.1	(a)
	“Reference Property”

	 	 	4.11	(a)
	“Registrar”

	 	 	2.3	(a)
	“Remaining Shares”

	 	 	4.14	(a)
	“Restricted Transfer Default”

	 	 	5.8	(b)
	“Restricted Transfer Triggering Date”

	 	 	5.8	(b)
	“Rights”

	 	 	4.15	 
	“Rights Plan”

	 	 	4.15	 
	“Spin-Off”

	 	 	4.6	(a)(3)
	“Stock Price”

	 	 	4.1	(i)
	“Trigger Event”

	 	 	4.6	(a)(3)
	“Valuation Period”

	 	 	4.6	(a)(3)

          SECTION 1.3. TRUST INDENTURE ACT PROVISIONS.

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

          “indenture securities” means the Securities;

          “indenture security holder” means a Securityholder;

          “indenture to be qualified” means this Indenture;

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

7

 

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

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

          SECTION 1.4. RULES OF CONSTRUCTION.

          (a) Unless the context otherwise requires:

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

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

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

          (4) provisions apply to successive events and transactions;

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

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

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

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

ARTICLE 2

THE SECURITIES

          SECTION 2.1. FORM AND DATING.

          The Securities and the Trustee’s certificate of authentication shall be substantially in the
respective forms set forth in Exhibit A, which Exhibit is incorporated in and made part of
this Indenture. The Securities may have notations, legends or endorsements required by law, stock
exchange or automated quotation system rule or regulation or usage. The Company shall provide any
such notations, legends or endorsements to the Trustee in writing. Each Security shall be dated
the date of its authentication. The Securities are being offered and sold by the Company pursuant
to a Purchase Agreement dated July 29, 2009 (the “Purchase Agreement”) between the Company
and the Initial Purchasers, in transactions exempt from, or not subject to, the registration
requirements of the Securities Act.

8

 

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

          (b) Global Securities In General. Each Global Security shall represent such of the
outstanding Securities as shall be specified therein and each shall provide that it shall
represent the aggregate amount of outstanding Securities from time to time endorsed thereon and
that the aggregate amount of outstanding Securities represented thereby may from time to time be
reduced or increased, as appropriate, to reflect replacements, exchanges, purchases, redemptions,
or conversions of such Securities. Any adjustment of the aggregate principal amount of a Global
Security to reflect the amount of any increase or decrease in the amount of outstanding
Securities represented thereby shall be made by the Trustee in accordance with instructions given
by the Holder thereof as required by Section 2.12 hereof and shall be made on the records of the
Trustee and the Depositary.

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

          (c) Book Entry Provisions. The Company shall execute and the Trustee shall, in
accordance with this Subsection 2.1(c), authenticate and deliver initially one or more Global
Securities that (1) shall be registered in the name of the Depositary or its nominee, (2) shall
be delivered by the Trustee to the
Depositary or pursuant to the Depositary’s instructions and (3) shall bear legends
substantially to the following effect:

“UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS

9

 

REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN. THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE
NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN
WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY
A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY
OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF
SUCH SUCCESSOR DEPOSITARY.”

          SECTION 2.2. EXECUTION AND AUTHENTICATION.

          (a) The aggregate principal amount of Securities which may be authenticated and delivered
under this Indenture is limited to $400,000,000 except as provided in Sections 2.6 and 2.7.

          (b) Two Officers shall sign the Securities for the Company by manual or facsimile signature,
one of whom shall be the Secretary or an Assistant Secretary of the Company. Typographic and
other minor errors or defects in any such facsimile signature shall not affect the validity or
enforceability of any Security that has been authenticated and delivered by the Trustee.

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

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

          (e) The Trustee shall authenticate and make available for delivery Securities for original
issue in the aggregate principal amount of up to $400,000,000 upon receipt of a written order or orders of the Company signed by an Officer
of the Company (a “Company Order”). The Company Order shall specify the amount of
Securities to be authenticated, shall provide that all such Securities will be represented by a
Restricted Global Security and the date on which each original issue of Securities is to be
authenticated.

          (f) The Trustee shall act as the initial authenticating agent. Thereafter, the Trustee may
appoint an authenticating agent acceptable to the Company to authenticate Securities. An
authenticating agent

10

 

may authenticate Securities whenever the Trustee may do so. Each reference
in this Indenture to authentication by the Trustee includes authentication by such agent. An
authenticating agent shall have the same rights as an Agent to deal with the Company or an
Affiliate of the Company.

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

     SECTION 2.3. REGISTRAR, PAYING AGENT AND CONVERSION AGENT.

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

          (b) The Company shall enter into an appropriate agency agreement with any Agent not a party
to this Indenture. The agreement shall implement the provisions of this Indenture that relate to
such Agent. The Company shall notify the Trustee of the name and address of any Agent not a
party to this Indenture. If the Company fails to maintain a Registrar, Paying Agent, Conversion
Agent or agent for service of notices and demands in any place required by this Indenture, or
fails to give the foregoing notice, the Trustee shall act as such. The Company or any Affiliate
of the Company may act as Paying Agent (except for the purposes of Section 5.1 and Article 9),
Conversion Agent and Registrar.

          (c) The Company hereby initially designates the Trustee as Paying Agent, Registrar,
Securities Custodian and Conversion Agent, and each of the Corporate Trust Office of the Trustee
and the office or
agency of U.S. Bank Trust National Association, an Affiliate of the Trustee, in the Borough
of Manhattan, The City of New York, one such office or agency of the Company for each of the
aforesaid purposes.

     SECTION 2.4. PAYING AGENT TO HOLD MONEY IN TRUST.

     Prior to 11:00 a.m., New York City time, on each due date of the principal of, or interest on,
any Securities, the Company shall deposit with a Paying Agent a sum sufficient to pay such
principal or interest so becoming due. Subject to Section 9.2, a Paying Agent shall hold in trust
for the benefit of Securityholders or the Trustee all money held by the Paying Agent for the
payment of principal of, or interest on, the Securities, and shall notify the Trustee of any
failure by the Company (or any other obligor on the Securities) to make any such payment. If the
Company or an Affiliate of the Company acts as Paying Agent, it shall, before 11:00 a.m., New York
City time, on each due date of the principal of, or interest on, any Securities, segregate the
money and hold it as a separate trust fund. The Company at any time may require a Paying Agent to
pay all money held by it to the Trustee, and the Trustee may at any time during the continuance of
any Default, upon written request to a Paying Agent, require such Paying Agent to pay forthwith to
the

11

 

Trustee all sums so held in trust by such Paying Agent. Upon doing so, the Paying Agent (other
than the Company) shall have no further liability for the money.

          SECTION 2.5. SECURITYHOLDER LISTS.

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

          SECTION 2.6. TRANSFER AND EXCHANGE.

          (a) Subject to compliance with any applicable additional requirements contained in Section
2.12, when a Security is presented to a Registrar with a request to register a transfer thereof
or to exchange such Security for an equal principal amount of Securities of other authorized
denominations, the Registrar shall register the transfer or make the exchange as requested;
provided, however, that every Security presented or surrendered for registration of transfer or
exchange shall be duly endorsed or accompanied by an assignment form and, if applicable, a
transfer certificate each in the form included in Exhibit A, and in form satisfactory to
the Registrar duly executed by the Holder thereof or its attorney duly authorized in writing. To
permit registration of transfers and exchanges, upon surrender of any Security for registration
of transfer or exchange at an office or agency maintained pursuant to Section 2.3, the Company
shall execute and the Trustee shall authenticate Securities of a like aggregate principal amount
at the Registrar’s request. Any exchange or transfer shall be without charge, except that the
Company or the Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in
relation thereto, and provided, that this sentence shall not apply to any exchange pursuant
to Section 2.10, 2.12(a), 3.6, 3.12, 4.2(e) or 10.5.

          (b) Neither the Company, any Registrar nor the Trustee shall be required to exchange or
register a transfer of (1) any Securities for a period of 15 days next preceding mailing of a
notice of Securities to be redeemed, (2) any Securities or portions thereof selected or called
for redemption (except in the case of redemption of a Security in part, the portion thereof not
to be redeemed) or (3) any Securities or portions thereof in respect of which a Fundamental
Change Purchase Notice has been delivered and not withdrawn by the Holder thereof (except, in the
case of the purchase of a Security in part, the portion thereof not to be purchased).

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

          (d) Any Registrar appointed pursuant to Section 2.3 hereof shall provide to the Trustee such
information as the Trustee may reasonably require in connection with the delivery by such
Registrar of Securities upon transfer or exchange of Securities.

12

 

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

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

          SECTION 2.7. REPLACEMENT SECURITIES.

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

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

          (c) Upon the issuance of any new Securities under this Section 2.7, the Company may require
the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed
in relation thereto and any other reasonable expenses (including the reasonable fees and expenses
of the Trustee or the Registrar) in connection therewith.

          (d) Every new Security issued pursuant to this Section 2.7 in lieu of any mutilated,
destroyed, lost or stolen Security shall constitute an original additional contractual obligation
of the Company, whether or not the mutilated, destroyed, lost or stolen Security shall be at any
time enforceable by anyone, and shall be entitled to all benefits of this Indenture equally and
proportionately with any and all other Securities duly issued hereunder.

          (e) The provisions of this Section 2.7 are (to the extent lawful) exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities.

13

 

          SECTION 2.8. OUTSTANDING SECURITIES.

          (a) Securities outstanding at any time are all Securities authenticated by the Trustee,
except for those canceled by it, those redeemed or purchased pursuant to Article 3, those
converted pursuant to Article 4, those delivered to the Trustee for cancellation or surrendered
for transfer or exchange and those described in this Section 2.8 as not outstanding.

          (b) If a Security is replaced pursuant to Section 2.7, it ceases to be outstanding unless
the Company receives proof satisfactory to it that the replaced Security is held by a bona fide
purchaser.

          (c) If a Paying Agent (other than the Company or an Affiliate of the Company) holds in
respect of the outstanding Securities on a Redemption Date, a Fundamental Change Purchase Date or
the Final Maturity Date money sufficient to pay the principal of (including premium, if any) and
accrued interest on Securities (or portions thereof) payable on that date, then on and after such
Redemption Date, Fundamental Change Purchase Date, or the Final Maturity Date, as the case may
be, such Securities (or portions thereof, as the case may be) shall cease to be outstanding and
interest on them shall cease to accrue; provided that if such Securities are to be
redeemed, notice of such redemption has been duly given pursuant to this Indenture or provision
thereof satisfactory to the Trustee has been made.

          (d) Subject to the restrictions contained in Section 2.9, a Security does not cease to be
outstanding because the Company or an Affiliate of the Company holds the Security.

          SECTION 2.9. TREASURY SECURITIES.

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

          SECTION 2.10. TEMPORARY SECURITIES.

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

14

 

          SECTION 2.11. CANCELLATION.

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

          SECTION 2.12. LEGEND; ADDITIONAL TRANSFER AND EXCHANGE REQUIREMENTS.

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

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

          (c) Subject to the succeeding paragraph, every Security shall be subject to the restrictions
on transfer provided in the Legend other than a Restricted Global Security. Whenever any
Restricted Security other than a Restricted Global Security is presented or surrendered for
registration of transfer or for exchange for a Security registered in a name other than that of
the Holder, such Security must be accompanied by a certificate in substantially the form set
forth in Exhibit A, dated the date of such

15

 

surrender and signed by the Holder of such
Security, as to compliance with such restrictions on transfer. The Registrar shall not be
required to accept for such registration of transfer or exchange any Security not so accompanied
by a properly completed certificate.

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

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

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

                    (1) Notwithstanding any other provisions of this Indenture or the Securities, a Global
Security shall not be exchanged in whole or in part for a Security registered in the name of any
Person other than the Depositary or one or more nominees thereof, provided that a Global
Security may be exchanged for Securities registered in the names of any person designated by the
Depositary in the event that (A) the Depositary has notified the Company that it is unwilling or
unable to continue as Depositary for such Global Security or such Depositary has ceased to be a
“clearing agency” registered under the Exchange Act, and a successor Depositary is not appointed by
the Company within 90 days, (B) the Company has provided the Depositary with written notice that it
has decided to discontinue use of the system of book-entry transfer through the Depositary or any
successor Depositary or (C) an Event of Default has occurred and is continuing with respect to the
Securities. Any Global Security exchanged pursuant to subclauses (A) or (B) immediately above shall
be so exchanged in whole and not in part, and any Global Security exchanged pursuant to subclause
(C) above may be exchanged in whole or from time to time in part as directed by the Depositary. Any
Security issued in exchange for a Global Security or any portion thereof shall be a Global
Security; provided that any such Security so issued that is registered in the name of a
Person other than the Depositary or a nominee thereof shall not be a Global Security.

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

16

 

the records of
the Trustee. Upon any such surrender or adjustment, the Trustee shall authenticate and deliver the
Security issuable on such exchange to or upon the order of the Depositary or an authorized
representative thereof.

               (3) Subject to the provisions of clause (5) of this Subsection 2.12(e), the registered Holder
may grant proxies and otherwise authorize any Person, including Agent Members and persons that may
hold interests through Agent Members, to take any action which a Holder is entitled to take under
this Indenture or the Securities.

               (4) In the event of the occurrence of any of the events specified in clause (1) of this
Subsection 2.12(e) above, the Company will promptly make available to the Trustee a reasonable
supply of Certificated Securities in definitive, fully registered form, without interest coupons.

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

          SECTION 2.13. CUSIP NUMBERS.

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

ARTICLE 3

REDEMPTION AND PURCHASE

          SECTION 3.1. TO REDEEM; NOTICE TO TRUSTEE.

          (a) Prior to August 20, 2014, the Securities shall not be redeemable. The Company may, at
its option, redeem the Securities at any time on or after August 20, 2014 in whole, or from time
to time in part (which must be equal to $1,000 or any multiple thereof), at a Redemption Price in
cash equal to 100% of the principal amount of the Securities being redeemed, plus accrued and
unpaid interest to, but excluding, the Redemption Date (the “Redemption Price”);
provided that if the Redemption Date falls after a Regular Record Date and on or before
an Interest Payment Date, then the interest will be payable to the Holders in whose names the
Securities are registered at the close of business on such Regular Record Date and the

17

 

term
Redemption Price shall not include such interest. Securities or portions of the Securities
called for redemption shall be convertible by the Holder in accordance with the provisions of
Article 4 until the close of business on the Business Day prior to the Redemption Date.

          (b) If the Company elects to redeem Securities pursuant to this Section 3.1, it shall notify
the Trustee at least 35 days prior to the Redemption Date as fixed by the Company (unless a
shorter notice shall be satisfactory to the Trustee) of the Redemption Date and the principal
amount of Securities to be redeemed. If fewer than all of the Securities are to be redeemed, the
record date relating to such redemption shall be selected by the Company and given to the
Trustee, which record date shall not be less than five days after the date of notice to the
Trustee.

          SECTION 3.2. SELECTION OF SECURITIES TO BE REDEEMED.

          (a) If less than all of the Securities are to be redeemed, unless the procedures of the
Depositary provide otherwise, the Trustee shall, at least 30 days but not more than 60 days prior
to the Redemption Date, select the Securities to be redeemed. The Trustee shall make the
selection from the Securities outstanding and not previously called for redemption by lot, or in
its discretion, on a pro rata basis. Securities in denominations of $1,000 may only be redeemed
in whole. The Trustee may select for redemption portions (equal to $1,000 or any multiple
thereof) of the principal of Securities that have denominations larger than $1,000. Provisions
of this Indenture that apply to Securities called for redemption also apply to portions of
Securities called for redemption.

          (b) If any Security selected for partial redemption is converted in part before termination
of the conversion right with respect to the portion of the Security so selected, the converted
portion of such Security shall be deemed to be the portion selected for redemption. Securities
which have been converted subsequent to the Trustee commencing selection of Securities to be
redeemed but prior to redemption of such Securities shall be treated by the Trustee as
outstanding for the purpose of such selection.

          SECTION 3.3. NOTICE OF REDEMPTION.

          (a) At least 30 days but not more than 60 days before a Redemption Date, the Company shall
give notice of redemption in accordance with Section 11.2 to each Holder of Securities to be
redeemed at such Holder’s address as it appears on the Registrar’s books.

          (b) The notice shall identify the Securities (including CUSIP numbers) to be redeemed and
shall state:

                    (1) the Redemption Date;

                    (2) the Redemption Price;

                    (3) the then effective Conversion Price and Conversion Rate;

                    (4) the name and address of each Paying Agent and Conversion Agent;

18

 

                    (5) that Securities called for redemption must be presented and surrendered to a Paying Agent
to collect the Redemption Price;

                    (6) that Holders who wish to convert Securities must surrender such Securities for conversion
no later than the close of business on the Business Day immediately preceding the Redemption Date
and must satisfy the other requirements set forth in paragraph 9 of the Securities and Article 4
hereof;

                    (7) that, unless the Company defaults in making the payment of the Redemption Price, interest
on Securities called for redemption shall cease to accrue on and after the Redemption Date and the
only remaining right of the Holder shall be to receive payment of the Redemption Price plus any
accrued and unpaid interest payable to such Holder upon presentation and surrender to a Paying
Agent of the Securities; and

                    (8) if any Security is being redeemed in part, the portion of the principal amount of such
Security to be redeemed and that, after the Redemption Date, upon presentation and surrender of
such Security, a new Security or Securities in aggregate principal amount equal to the unredeemed
portion thereof will be issued.

          (c) If any of the Securities to be redeemed is in the form of a Global Security, then the
Company shall modify such notice to the extent necessary to accord with the procedures of the
Depositary applicable to redemptions. At the Company’s request, which request shall (1) be
irrevocable once given and (2) set forth all relevant information required by clauses (1) through
(8) of Subsection 3.3(b), the Trustee shall give such notice of redemption to each Holder on
behalf of the Company and at the Company’s expense; provided, however, that, in
all cases, the text of such notice of redemption shall be prepared by the Company.

          SECTION 3.4. EFFECT OF NOTICE OF REDEMPTION.

          Once notice of redemption is given, Securities called for redemption become due and payable on
the Redemption Date and at the Redemption Price stated in the notice, except for Securities that
are converted in accordance with the provisions of Article 4. On or after the Redemption Date and
upon presentation and surrender to a Paying Agent, Securities called for redemption shall be paid
at the Redemption Price.

          SECTION 3.5. DEPOSIT OF REDEMPTION PRICE.

          Prior to 11:00 a.m., New York City time, on the Redemption Date, the Company shall deposit
with a Paying Agent (or, if the Company acts as Paying Agent, shall segregate and hold in trust) an
amount of money (in immediately available funds if deposited on such Redemption Date) sufficient to
pay the Redemption Price of all Securities to be redeemed on that date, other than Securities or
portions thereof called for redemption on that date which have been delivered by the Company to the
Trustee for cancellation or have been converted. The Paying Agent shall as promptly as practicable
return to the Company any money not required for that purpose because of the conversion of
Securities pursuant to Article 4 or, if such money is then held by the Company in trust and is not
required for such purpose, it shall be discharged from the trust.

19

 

          SECTION 3.6. SECURITIES REDEEMED IN PART.

          Upon presentation and surrender of a Security that is redeemed in part, the Company shall
execute and the Trustee shall authenticate and deliver to the Holder a new Security equal in
principal amount to the unredeemed portion of the Security surrendered.

          SECTION 3.7. PURCHASE OF SECURITIES AT OPTION OF THE HOLDER UPON FUNDAMENTAL CHANGE.

          If at any time the Securities remain outstanding there shall have occurred a Fundamental
Change, all or any portion of the Securities of any Holder equal to $1,000 or a multiple of $1,000,
shall be purchased by the Company, at the option of such Holder, at a purchase price in cash equal
to 100% of the principal amount of the Securities to be purchased, together with interest accrued
and unpaid to, but excluding, the Fundamental Change Purchase Date (the “Fundamental Change
Purchase Price”), on the date (the “Fundamental Change Purchase Date”) that is
specified by the Company and is not less than 20 or more than 35 calendar days following the date
of the Company Fundamental Change Notice; provided, however, if the Fundamental
Change Purchase Date is an Interest Payment Date, then interest on the Securities shall be payable
to the Holders in whose name the Securities are registered at the close of business on such Regular
Record Date and the term Fundamental Change Purchase Price shall not include such interest.

          (a) Whenever in this Indenture (including Sections 2.1, 7.1 and 7.7 hereof) or in the form
of Securities there is a reference, in any context, to the principal of any Securities as of any
time, such reference shall be deemed to include reference to the Fundamental Change Purchase
Price payable in respect to such Securities to the extent that such Fundamental Change Purchase
Price is, was or would be so payable at such time, and express mention of the Fundamental Change
Purchase Price in any provision of this Indenture shall not be construed as excluding the
Fundamental Change Purchase Price in those provisions of this Indenture when such express mention
is not made.

          (b) A “Fundamental Change” of the Company, or any successor entity that is subject
to the terms of this Indenture, shall be deemed to have occurred at such time after the original
issuance of Securities as any of the following events shall occur:

                    (1) the acquisition by any person of beneficial ownership, directly or indirectly, through a
purchase, merger (except a merger or consolidation described in subclause (2) of this Subsection)
or other acquisition transaction or series of transactions, of shares of the Capital Stock of the
Company entitling that person to exercise 50% or more of the total voting power of all shares of
such Capital Stock entitled to vote generally in elections of directors, other than any acquisition
by the Company, any of its Subsidiaries or any employee benefit plans of the Company;

                    (2) any merger or consolidation of the Company with or into any other person, any merger of
another person into the Company, or any conveyance, transfer, sale, lease or other disposition of
all or substantially all of the Company’s properties and assets to another person (other than to
one or more wholly-owned Subsidiaries of the Company), except:

20

 

               (A) any transaction pursuant to which holders of the Capital Stock of the Company
immediately prior to the transaction are entitled to exercise, directly or indirectly, 50%
or more of the
total voting power of all shares of the Capital Stock of the Company entitled to vote
generally in the election of directors of the continuing or surviving person immediately
after the transaction in substantially the same proportion as such ownership immediately
prior to such transaction; or

               (B) any merger solely for the purpose of changing the Company’s jurisdiction of
incorporation and resulting in a reclassification, conversion or exchange of outstanding shares of Common Stock solely into shares of common stock of the surviving entity;

                    (3) during any consecutive two-year period, individuals who at the beginning of that two-year
period constituted the Board of Directors (together with any new directors whose election to the
Board of Directors, or whose nomination for election by the stockholders of the Company, was
approved by a vote of a majority of the directors then still in office who were either directors at
the beginning of such period or whose election or nomination for election were previously so
approved) cease to constitute a majority of the Board of Directors then in office;

                    (4) a resolution is passed by the Company’s stockholders approving a plan of liquidation or
dissolution of the Company; or

                    (5) the Common Stock of the Company (or other Capital Stock into which the Securities are
convertible pursuant to Section 4.1 hereof) ceases to be listed on a national securities exchange
located in the United States.

          Beneficial ownership shall be determined in accordance with Rule 13d-3 promulgated by the SEC
under the Exchange Act. The term “person” includes any syndicate or group that would be deemed to
be a “person” under Section 13(d)(3) of the Exchange Act.

          (c) Notwithstanding anything to the contrary set forth in this Section 3.7, a Fundamental
Change will be deemed not to have occurred if, in the case of a merger or consolidation, more
than 90% of the consideration (excluding cash payments for fractional shares and cash payments
made pursuant to dissenters’ appraisal rights) in a merger or consolidation otherwise
constituting a Fundamental Change consists of shares of common stock, depositary receipts,
ordinary shares or other certificates representing common equity interests traded on a U.S.
national securities exchange, or will be so traded or quoted immediately following such merger or
consolidation, and as a result of such merger or consolidation the Securities become convertible
in accordance with Section 4.11 hereof into cash in an amount equal to the lesser of $1,000 and
the Conversion Value and, if the Conversion Value is greater than $1,000, payment of the excess
value in the form of cash or such common stock, depositary receipts, ordinary shares or other
certificates representing common equity interests.

          (d) On or before the 20th day after the occurrence of a Fundamental Change, the
Company, or, at the written request and expense of the Company, the Trustee, shall give written
notice of the Fundamental Change (the “Company Fundamental Change Notice”) to the Trustee
(if the Trustee does not mail such notice), the Paying Agent and to each Holder (and to
beneficial owners as required by applicable law) in accordance with Section 11.2. The Company
Fundamental Change Notice shall include the form of a Fundamental Change Purchase Notice to be
completed by the Holder and shall state:

21

 

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

               (2) the date by which the Fundamental Change Purchase Notice pursuant to this Section 3.7
must be given;

               (3) the Fundamental Change Purchase Date;

               (4) the Fundamental Change Purchase Price;

               (5) the Holder’s right to require the Company to purchase the Security and the last date on
which a Holder may exercise such right;

               (6) briefly, the conversion rights of the Securities;

               (7) the name and address of each Paying Agent and Conversion Agent and that the Securities
must be surrendered to the Paying Agent to collect payment;

               (8) the then effective Conversion Price and Conversion Rate and any adjustments to the
Conversion Rate ;

               (9) the procedures that the Holder must follow to exercise conversion rights under Article
4 and that Securities as to which a Fundamental Change Purchase Notice has been given may be
converted pursuant to Article 4 of this Indenture only to the extent that the Fundamental Change
Purchase Notice has been withdrawn in accordance with the terms of this Indenture;

               (10) the procedures that the Holder must follow to exercise rights under this Section 3.7;

               (11) the procedures for withdrawing a Fundamental Change Purchase Notice, including a form
of notice of withdrawal; and

               (12) whether such notice constitutes a Non-Stock Fundamental Change in accordance with
Section 4.1(i).

If any of the Securities is in the form of a Global Security, then the Company shall modify such
notice to the extent necessary to accord with the procedures of the Depositary applicable to the
purchase of Global Securities.

Contemporaneously with providing such Fundamental Change Purchase Notice, the Company shall publish
a notice containing the information therein in a newspaper of general circulation in New York City,
New York, or publish such information on the Company’s website or through such other public medium
as the Company may use at that time.

          (e) A Holder may exercise its rights specified in this Section 3.7 upon delivery of a
written notice (which shall be in substantially the form included in Exhibit A hereto and
which may be delivered by letter, overnight courier, hand delivery, facsimile transmission or in
any other written form and, in the case

22

 

of Global Securities, may be delivered electronically or by other means in accordance with
the Depositary’s customary procedures) of the exercise of such rights (a “Fundamental Change
Purchase Notice”) together with the Securities with respect to which such rights are being
exercised to any Paying Agent at any time prior to the close of business on the Business Day
immediately preceding the Fundamental Change Purchase Date.

                    (1) The delivery of such Security to any Paying Agent prior to, on or prior to the close of
business on the Business Day immediately preceding the Fundamental Change Purchase Date (together
with all necessary endorsements) at the office of such Paying Agent shall be a condition to the
receipt by the Holder of the Fundamental Change Purchase Price therefor.

                    (2) The Company shall only be obliged to purchase pursuant to this Section 3.7, a portion of a
Security if the principal amount of such portion is $1,000 or a multiple of $1,000. Provisions of
this Indenture that apply to the purchase of all of a Security also apply to the purchase of such
portion of such Security.

                    (3) Notwithstanding anything herein to the contrary, any Holder delivering to a Paying Agent
the Fundamental Change Purchase Notice contemplated by this Subsection 3.7(e) shall have the right
to withdraw such Fundamental Change Purchase Notice in whole or in a portion thereof that is a
principal amount of $1,000 or in a multiple thereof at any time prior to the close of business on
the Business Day immediately preceding the Fundamental Change Purchase Date by delivery of a
written notice of withdrawal to the Paying Agent in accordance with Section 3.8.

                    (4) A Paying Agent shall promptly notify the Company of the receipt by it of any Fundamental
Change Purchase Notice or written withdrawal thereof.

                    (5) Anything herein to the contrary notwithstanding, in the case of Global Securities, any
Fundamental Change Purchase Notice may be delivered or withdrawn and such Securities may be
surrendered or delivered for purchase in accordance with the Applicable Procedures as in effect
from time to time.

          SECTION 3.8. EFFECT OF FUNDAMENTAL CHANGE PURCHASE NOTICE.

          (a) Upon receipt by any Paying Agent of a properly completed Fundamental Change Purchase
Notice and Securities from a Holder in accordance with Section 3.7(e), the Holder of the Security
in respect of which such Fundamental Change Purchase Notice was given shall (unless such
Fundamental Change Purchase Notice is withdrawn as specified below) thereafter be entitled to
receive the Fundamental Change Purchase Price with respect to such Security. Such Fundamental
Change Purchase Price shall be paid to such Holder promptly following the later of (1) the
Fundamental Change Purchase Date with respect to such Security (provided that the
conditions in Subsection 3.7(e) have been satisfied) and (2) the time of delivery of such
Security to a Paying Agent by the Holder thereof in the manner required by Subsection 3.7(e).
Securities in respect of which a Fundamental Change Purchase Notice has been given by the Holder
thereof may not be converted pursuant to Article 4 on or after the date of the delivery of such
Fundamental Change Purchase Notice unless such Fundamental Change Purchase Notice has first
been validly withdrawn in accordance with Subsection 3.8 (b) with respect to the Securities
to be converted.

23

 

          (b) A Fundamental Change Purchase Notice may be withdrawn by means of a written notice
(which may be delivered by mail, overnight courier, hand delivery, facsimile transmission or in
any other written form and, in the case of Global Securities, may be delivered electronically or
by other means in accordance with the Depositary’s customary procedures) of withdrawal delivered
by the Holder to a Paying Agent at any time prior to the close of business on the Business Day
immediately preceding the Fundamental Change Purchase Date, specifying the principal amount of
the Security or portion thereof (which must be a principal amount of $1,000 or a multiple of
$1,000 in excess thereof) with respect to which such notice of withdrawal is being submitted, the
certificate number (if in certificated form) of the Securities so withdrawn and the principal
amount of Securities (if any) that remain subject to the Fundamental Change Purchase Notice. In
the case of Global Securities, any withdrawal notice must comply with the Applicable Procedures
in effect from time to time.

          SECTION 3.9. DEPOSIT OF FUNDAMENTAL CHANGE PURCHASE PRICE

          (a) On or before 11:00 a.m. New York City time on the Fundamental Change Purchase Date, the
Company shall deposit with the Trustee or with a Paying Agent (other than the Company or an
Affiliate of the Company) an amount of money (in immediately available funds if deposited on such
Fundamental Change Purchase Date) sufficient to pay the aggregate Fundamental Change Purchase
Price of all the Securities or portions thereof that are to be purchased on such Fundamental
Change Purchase Date. The manner in which the deposit required by this Section 3.9 is made by
the Company shall be at the option of the Company, provided that such deposit shall be
made in a manner such that the Trustee or a Paying Agent shall have immediately available funds
on the Fundamental Change Purchase Date.

          (b) If a Paying Agent holds, in accordance with the terms hereof, money sufficient to pay
the Fundamental Change Purchase Price of any Security for which a Fundamental Change Purchase
Notice has been tendered and not withdrawn in accordance with this Indenture then, on the
Fundamental Change Purchase Date, such Security will cease to be outstanding, interest will cease
to accrue and the rights of the Holder in respect thereof shall terminate (other than the right
to receive the Fundamental Change Purchase Price as aforesaid). The Company shall publicly
announce the principal amount of Securities repurchased on or as soon as practicable after the
Fundamental Change Purchase Date.

          SECTION 3.10. REPAYMENT TO THE COMPANY.

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

          SECTION 3.11. PURCHASE OF SECURITIES AT OPTION OF THE HOLDER ON SPECIFIED DATES

          (a) Securities shall be purchased in cash in whole or in part (which must be equal to $1,000
or any multiple thereof) by the Company, at the option of Holders, in accordance with the
provisions of this Section 3.11 and paragraph 8 of the Securities promptly after August 15, 2014,
August 15, 2019 and August 15, 2024 (each, a “Put Right Purchase Date”), at a purchase
price per Security in cash equal to

24

 

100% of the aggregate principal amount of the Security,
together with any accrued and unpaid interest if any up to but not including the applicable Put
Right Purchase Date (the “Put Right Purchase Price”).

          (b) The Company shall give written notice of the applicable Put Right Purchase Date in
accordance with Section 11.2 to the Trustee and to each Holder (at its address shown in the
register of the Registrar) not less than 20 Business Days prior to each Put Right Purchase Date
(the “Company Put Right Notice”). Each Company Put Right Notice shall include a form of
Put Right Purchase Notice to be completed by a Holder and shall state:

               (1) the Put Right Purchase Price, the Put Right Purchase Date and the Conversion Price and
Conversion Rate then in effect;

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

               (3) that Securities as to which a Put Right Purchase Notice has been given may be converted
if they are otherwise convertible only in accordance with Article 4 hereof and paragraph 9 of
the Securities only to the extent that the Put Right Purchase Notice has been withdrawn in
accordance with the terms of this Indenture;

               (4) that Securities must be surrendered to the Paying Agent to collect payment;

               (5) that the Put Right Purchase Price for any Security as to which a Put Right Purchase
Notice has been given and not withdrawn will be paid promptly following the later of the Put
Right Purchase Date and the time of surrender of such Security as described in subclause (4)
above;

               (6) the procedures the Holder must follow to exercise rights under this Section and a brief
description of those rights;

               (7) briefly, the conversion rights of the Securities;

               (8) the procedures for withdrawing a Put Right Purchase Notice as set forth in Subsection
3.11(g);

               (9) that, unless the Company fails to pay such Put Right Purchase Price on Securities for
which a Put Right Purchase Notice has been submitted, such Securities shall no longer be
outstanding and interest on such Securities will cease to accrue on and after the Put Right
Purchase Date; and

               (10) the CUSIP number of the Securities.

          (c) If any of the Securities are to be redeemed in the form of a Global Security, the
Company shall modify such Company Put Right Notice to the extent necessary to accord with the
procedures of the Depositary applicable to repurchases.

          (d) At the Company’s request, the Trustee shall give such Company Put Right Notice on behalf
of the Company and at the Company’s expense; provided, however, that, in all
cases, the text of such Company Put Right Notice shall be prepared by the Company.

25

 

          (e) To exercise its rights pursuant to this Section 3.11, the Holder shall deliver to the
Paying Agent a written notice of purchase in the form set forth in Exhibit A attached
hereto (a “Put Right Purchase Notice”) at any time from the opening of business on the
date that is 20 Business Days prior to the applicable Put Right Purchase Date until the close of
business on the Put Right Purchase Date stating:

          (1) if certificated Securities have been issued, the certificate number of the Security
which the Holder will deliver to be purchased (or if the Securities are not certificated,
the Put Right Purchase Notice must comply with the procedures of the Depositary applicable
to purchases),

          (2) the portion (which may be 100%) of the principal amount of the Security which the
Holder will deliver to be purchased, which portion must be in a principal amount of $1,000
or a multiple thereof, and

          (3) that such Security shall be purchased as of the applicable Put Right Purchase Date
pursuant to the terms and conditions in this Section 3.11.

          (f) The Company shall purchase all Securities with respect to which a Put Right Purchase
Notice is given and not withdrawn, upon the later of the applicable Put Right Purchase Date and
delivery of such Securities to the Paying Agent (together with all necessary endorsements) at the
offices of the Paying Agent (if the Securities are not certificated, such delivery must comply
with the procedures of the Depositary applicable to purchases). Delivery of such Security shall
be a condition to receipt by the Holder of the Put Right Purchase Price therefor. The Put Right
Purchase Price shall be paid pursuant to this Section 3.11 only if the Security delivered to the
Paying Agent conforms in all respects to the description thereof in the related Put Right
Purchase Notice, as determined by the Company.

          (g) Notwithstanding anything herein to the contrary, any Holder delivering to the Paying
Agent the Put Right Purchase Notice contemplated by this Section 3.11 shall have the right to
withdraw such Put Right Purchase Notice at any time prior to the close of business on the Put
Right Purchase Date by delivery of a written notice of withdrawal to the Paying Agent specifying:

               (1) the certificate number, if any, of the Security in respect of which such notice of
withdrawal is being submitted (or, if the Securities are not certificated, the withdrawal notice
must comply with the procedures of the Depositary applicable to withdrawals),

               (2) the aggregate principal amount of the Security (which must be equal to $1,000 or a
multiple thereof) with respect to which such notice of withdrawal is being submitted, and

               (3) the aggregate principal amount, if any, of such Security which remains subject to the
original Put Right Purchase Notice and which has been or will be delivered for purchase by the
Company.

          (h) The Paying Agent shall promptly notify the Company of the receipt by it of any Put Right
Purchase Notice or written notice of withdrawal thereof.

          (i) On or before 11:00a.m. (local time in the City of New York) on the Business Day
following the Put Right Purchase Date, the Company shall deposit with the Trustee or with the
Paying Agent (or if the Company or an Affiliate of the Company is acting as the Paying Agent,
shall segregate and hold in

26

 

trust as provided in Section 2.4) an amount of money (in immediately
available funds if deposited on or after such Put Right Purchase Date) sufficient to pay the
aggregate Put Right Purchase Price of all the Securities or portions thereof which are to be
purchased as of the Put Right Purchase Date. The manner in which the deposit required by this
Section 3.11(i) is made by the Company shall be at the option of the Company; provided
that such deposit shall be made in a manner such that the Trustee or a Paying Agent shall have
immediately available funds by the close of business on the Business Day after the Put Right
Purchase Date.

               (1) If a Paying Agent holds, in accordance with the terms hereof, money sufficient to pay
the Put Right Purchase Price of any Security for which a Put Right Purchase Notice has been
tendered and not withdrawn on the Put Right Purchase Date, then, on the close of business on the
Business Day after the Put Right Purchase Date, such Security will cease to be outstanding, and
interest shall cease to accrue on such Security whether or not the Security is delivered to the
Paying Agent, and the rights of the Holder in respect thereof shall terminate (other than the
right to receive the Put Right Purchase Price as aforesaid).

               (2) The Put Right Purchase Price shall be paid to such Holder with respect to Securities
for which a Put Right Purchase Notice has been tendered and not withdrawn, subject to receipt of
funds by the Paying Agent, promptly following the later of (A) the Business Day after the Put
Right Purchase Date with respect to such Security (provided that the conditions in
Subsection 3.11(f) have been satisfied) and (B) the time of delivery of such Security to the
Paying Agent by the Holder thereof in the manner required by Section 3.11(f). Securities in
respect of which a Put Right Purchase Notice has been given by the Holder thereof, if
convertible pursuant to Article 4 hereof, may not be converted on or after the date of the
delivery of such Put Right Purchase Notice, unless such Put Right Purchase Notice has first been
validly withdrawn as specified in Subsection 3.11(g).

               (3) To the extent that the aggregate amount of cash deposited by the Company pursuant to
this Subsection 3.11(i) exceeds the aggregate Put Right Purchase Price of the Securities or
portions thereof that the Company is obligated to purchase, then promptly after the Put Right
Purchase Date the Trustee or a Paying Agent, as the case may be, shall return any such excess
cash to the Company.

          (j) The Company shall only be obligated to purchase, pursuant to this Section 3.11, a
portion of a Security if the principal amount of such portion is $1,000 or a multiple of $1,000.
Provisions of this Indenture that apply to the purchase of all of a Security also apply to the
purchase of such portion of such Security.

          (k) Upon receipt by the Paying Agent of the Put Right Purchase Notice specified in
subsection 3.11(f), the Holder of the Security in respect of which such Put Right Purchase Notice
was given shall (unless such Put Right Purchase Notice is withdrawn as specified herein)
thereafter be entitled to receive solely the Put Right Purchase Price with respect to such
Security.

          SECTION 3.12. SECURITIES PURCHASED IN PART.

          Any Security that is to be purchased only in part shall be surrendered at the office of a
Paying Agent, and promptly after the Fundamental Change Purchase Date or the Put Right Purchase
Date, as the case may be, the Company shall execute and the Trustee shall authenticate and deliver
to the Holder of such Security,

27

 

without service charge, a new Security or Securities, of such
authorized denomination or denominations as may be requested by such Holder, in aggregate principal
amount equal to, and in exchange for, the portion of the principal amount of the Security so
surrendered that is not purchased.

          SECTION 3.13. COMPLIANCE WITH SECURITIES LAWS UPON PURCHASE OF SECURITIES

          In connection with any offer to purchase of Securities under Section 3.7 or Section 3.11, the
Company shall (a) comply with Rule 13e-4 and Rule 14e-1 (or any successor to either such Rule), if
applicable, under the Exchange Act, (b) file the related Schedule TO (or any successor or similar
schedule, form or report) if required under the Exchange Act, and (c) otherwise comply with all
federal and state securities laws in connection with such offer to purchase or purchase of
Securities, all so as to permit the rights of the Holders and obligations of the Company under
Sections 3.7 through 3.11 to be exercised in the time and in the manner specified therein.

          SECTION 3.14. PURCHASE OF SECURITIES

          The Company (a) shall, on or prior to the date that is two years from the latest issuance of
any Securities in accordance with Section 2.11 surrender any Security purchased by the Company
pursuant to this Article 3 to the Trustee for cancellation, and (b) after such date, may (to the
extent permitted by applicable law) reissue or sell such Security or surrender such Security to the
Trustee for cancellation as aforesaid. Any Securities surrendered to the Trustee for cancellation
may not be reissued or resold by the Company and will be canceled promptly in accordance with
Section 2.11.

ARTICLE 4

CONVERSION

          SECTION 4.1. CONVERSION PRIVILEGE AND CONVERSION RATE.

          (a) Subject to and upon compliance with the provisions of this Article and the Securities,
at the option of the Holder thereof, any Security or portion thereof that is a multiple of $1,000
principal amount may be converted on or prior to the close of business on the Final Maturity
Date, unless previously redeemed by the Company or purchased by the Company at the Holders’
option, at the Conversion Rate in effect at the time of conversion and subject to the adjustments
described below, into the kind and amount of consideration determined in accordance with Section
4.14 hereof only under the following circumstances:

          (1) on any date during any fiscal quarter commencing after September 30, 2009 (and only
during such fiscal quarter) if the Closing Price per share of the Common Stock was more than
130% of the then current Conversion Price for at least 20 Trading Days in the period of the 30
consecutive Trading Days ending on the last Trading Day of the previous fiscal quarter;

28

 

          (2) with respect to Securities called for redemption by the Company pursuant to Section
3.1, until the close of business on the Business Day prior to the Redemption Date;

          (3) if the Company distributes to all or substantially all holders of Common Stock rights,
options or warrants (other than pursuant to a stockholder rights plan) entitling them to
purchase Common Stock at less than the Closing Price per share of the Common Stock on the day
preceding the declaration for such distribution;

          (4) if the Company distributes to all or substantially all holders of Common Stock cash,
assets, debt securities or capital stock (other than pursuant to a stockholder rights plan,
share split of Common Stock or a dividend or distribution on its Common Stock in shares of
Common Stock), which distribution has a per share value as determined by the Board of Directors
exceeding 10% of the Closing Price per share of the Common Stock on the day preceding the
declaration for such distribution;

          (5) (i) if the Company becomes a party to a consolidation, merger or binding share exchange
pursuant to which all or substantially all of the Company’s Common Stock would be converted to
cash, securities or other property, (i) if a Fundamental Change occurs, or (iii) if an event
occurs that would have been a Fundamental Change but for the existence of the Fundamental Change
exception set forth in the proviso to Section 3.7(c) hereof, other than in the case of (i) or
(iii) an event described in clauses (A) or (B) of Section 3.7(b)(2);

          (6) during the five consecutive Business Day period after any five consecutive Trading Day
period in which the Trading Price per $1,000 principal amount of Securities, as determined
following a request by a Holder in accordance with the procedures described below in Section
4.1(d)(ii), for each Trading Day of such five Trading Day period was less than 98% of the
product of the average of the Closing Prices of the Common Stock for such five Trading Day
period and the then current Conversion Rate; or

          (7) On or after February 15, 2029, until the close of the business on the Business Day
immediately preceding the Final Maturity Date.

          (b) In the case of a distribution contemplated by clauses (3) and (4) of Section 4.1(a), the
Company shall notify Holders at least 20 days prior to the ex-dividend date (the first date on
which the
Common Stock trades, regular way, on the relevant market from which the Closing Price was
obtained without the right to receive such right, warrant, dividend or distribution) for such
distribution (the “Distribution Notice”). Once the Company has given the Distribution
Notice, Holders may surrender their Securities for conversion at any time until the earlier of
(i) the close of business on the Business Day next preceding the ex-dividend date and (ii) the
Company’s announcement that such distribution will not take place. In the event of a
distribution contemplated by clauses (3) and (4) of Section 4.1(a), Holders may not convert the
Securities if the Holders may otherwise participate in such distribution without converting their
Securities. The Company will provide written notice to the Conversion Agent as soon as
reasonably practicable of any anticipated or actual event or transaction that will cause or
causes the Securities to become convertible pursuant to clauses (3) or (4) of Section 4.1(a).

          (c) In the case of a transaction contemplated by clause (5) of Section 4.1(a) the Company
will notify Holders (i) at least 25 days prior to the anticipated effective date of such
transaction if such

29

 

anticipated effective date is known to the Company or (ii) if such
anticipated effective date is not known to the Company prior to such 25th day, then within five
Trading Days after the Company becomes aware of such transaction (the “Merger Notice”).
Holders may surrender Securities for conversion at any time from and after the date which is 15
days prior to the anticipated effective date of such transaction or after delivery of the Merger
Notice in accordance with clause (ii) of the preceding sentence if such delivery occurs after
such 15th day; provided, however, that Holders’ rights to convert Securities shall terminate upon
notice by the Company to the Holders that such contemplated transaction will not occur.

          (d) (i) For each fiscal quarter of the Company commencing after September 30, 2009, the
Conversion Agent, on behalf of the Company, will determine, on the first Business Day following
the last Trading Day of the prior fiscal quarter, whether the Securities are convertible pursuant
to clause (1) of Section 4.1(a), and, if so, will notify the Trustee and the Company in writing.

          (ii) The Trustee shall have no obligation to determine the Trading Price of the Securities and
whether the Securities are convertible pursuant to clause (7) of Section 4.1(a) unless the Company
has requested such determination; and the Company shall have no obligation to make such request
unless a Holder of the Securities provides the Company with reasonable evidence that the Trading
Price per $1,000 principal amount of Securities is reasonably likely to be less than 98% of the
product of the Closing Price of our Common Stock and the Conversion Rate then in effect per $1,000
principal amount of Securities. At such time, the Company shall instruct the Trustee to determine
the Trading Price of the Securities beginning on the next Trading Day and on each successive
Trading Day for 10 consecutive Trading Days to determine whether the Trading Prices for the
Securities for each Trading Day in any five consecutive Trading Day period within such 10 Trading
Day period is less than 98% of the product of (A) the average of the Closing Prices of the Common
Stock for such five Trading Day period and (B) the then current Conversion Rate, and to notify the
Company accordingly.

          (e) The conversion rights pursuant to this Article 4 shall commence on the initial issuance
date of the Securities and expire at the close of business on the Business Day immediately
preceding the Final Maturity Date, but shall be exercisable only upon the occurrence and during
the time periods specified with respect to each circumstance pursuant to which the Securities
become convertible pursuant to Section 4.1(a), subject, in the case of conversion of any Global
Security, to any Applicable Procedures. If a Security is called for redemption or submitted or
presented for purchase pursuant to Article 3, such conversion right shall terminate at the close
of business on the Business Day immediately preceding the
Redemption Date, Put Right Purchase Date or Fundamental Change Purchase Date, as the case
may be, for such Security (unless the Company shall fail to make the Redemption Price, Put Right
Purchase Price, or Fundamental Change Purchase Price payment when due in accordance with Article
3, in which case the conversion right shall terminate at the close of business on the date such
failure is cured and such Security is redeemed or purchased, as the case may be). Securities in
respect of which a Fundamental Change Purchase Notice or a Put Right Purchase Notice, as the case
may be, has been delivered may not be surrendered for conversion pursuant to this Article 4 prior
to a valid withdrawal of such Fundamental Change Purchase Notice or Put Right Purchase Notice, as
the case may be, in accordance with the provisions of Article 3.

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

30

 

          (g) A Holder of Securities is not entitled to any rights of a holder of Common Stock until
such Holder has converted its Securities into Common Stock, and only to the extent such
Securities are converted into Common Stock pursuant to this Article 4.

          (h) [Reserved]

          (i) Subject to Section 4.11, if a Holder elects to convert a Security in connection with a
Fundamental Change referred to in Section 3.7 (without regards to Section 3.7(b)(2)(A)), other
than Section 3.7(b)(3), pursuant to which 10% or more of the consideration for the Common Stock
(other than cash payments for fractional shares and cash payments made in respect of dissenters’
appraisal rights) in such transaction consists of cash or securities (or other property) that are
not traded or scheduled to be traded immediately following such transaction on a U.S. national
securities exchange (a “Non-Stock Fundamental Change”) that occurs on or prior to August
20, 2014, the Company will increase the Conversion Rate by an amount expressed as a number of shares of Common Stock (the “Additional Common Stock”) determined by reference to the
table below, based on the date on which the Non-Stock Fundamental Change becomes effective or the
date on which the Common Stock ceases to be traded on a U.S. National securities exchange (the
“Effective Date”) and the price (the “Stock Price”) paid (or deemed paid) per
share for the Common Stock in the Non-Stock Fundamental Change. If Holders of Common Stock
receive only cash in the Non-Stock Fundamental Change, the Stock Price shall be the cash amount
paid per share of Common Stock. Otherwise, the Stock Price shall be the average of the Closing
Prices of the Common Stock on the five Trading Days prior to but not including the Effective Date
of such Non-Stock Fundamental Change.

          The Company shall give notice (the “Non-Stock Fundamental Change Notice”) to all
Holders of such Non-Stock Fundamental Change as part of the Company Fundamental Change Notice in
accordance with Section 3.7(d). A conversion of Securities will be deemed for these purposes to be
“in connection with” such Fundamental Change if the notice of conversion of the Securities is
received by the Conversion Agent from, and including, the effective date of the Fundamental Change
up to, and including, the Business Day immediately prior to the related Fundamental Change Purchase
Date (or, in the case of an event that would have been a Fundamental Change but for Section
3.7(b)(2)(A), the 35th calendar day immediately following the effective date of such
Non-Stock Fundamental Change.

          The Stock Prices and number of shares of Additional Common Stock set forth in the table below
will be adjusted as of any date on which the Conversion Rate is adjusted. On such date, the Stock
Prices shall be adjusted by multiplying:

          (1) the Stock Prices applicable immediately prior to such adjustment, by

          (2) a fraction, of which

     (A) the numerator shall be the Conversion Rate immediately prior to the adjustment
giving rise to the Stock Price adjustment, and

     (B) the denominator shall be the Conversion Rate as so adjusted.

31

 

          The number of shares of Additional Common Stock shall be correspondingly adjusted in the same
manner as the adjustments to the Conversion Rate described in Section 4.6.

          The following table sets forth the increase in the Conversion Rate, expressed as the number of
shares of Additional Common Stock per $1,000 principal amount of Securities converted:

32

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stock Price
	Effective Date	 	$35.47	 	 	$37.50	 	 	$40.00	 	 	$45.00	 	 	$50.00	 	 	$55.00	 	 	$60.00	 	 	$70.00	 	 	$80.00	 	 	$90.00	 	 	$100.00	 	 	$125.00	 	 	$150.00	 
	August 4, 2009
	 	 	7.3092	 	 	 	6.5498	 	 	 	5.7678	 	 	 	4.5840	 	 	 	3.7507	 	 	 	3.1459	 	 	 	2.6946	 	 	 	2.0784	 	 	 	1.6840	 	 	 	1.4112	 	 	 	1.1786	 	 	 	0.8638	 	 	 	0.6636	 
	August 15, 2010
	 	 	7.3092	 	 	 	6.4711	 	 	 	5.6172	 	 	 	4.3414	 	 	 	3.4624	 	 	 	2.8418	 	 	 	2.3906	 	 	 	1.8002	 	 	 	1.4396	 	 	 	1.1993	 	 	 	1.0448	 	 	 	0.7775	 	 	 	0.6110	 
	August 15, 2011
	 	 	7.3092	 	 	 	6.3646	 	 	 	5.4148	 	 	 	4.0166	 	 	 	3.0826	 	 	 	2.4441	 	 	 	1.9991	 	 	 	1.4491	 	 	 	1.1369	 	 	 	0.9387	 	 	 	0.7969	 	 	 	0.5891	 	 	 	0.4607	 
	August 15, 2012
	 	 	7.3092	 	 	 	6.2161	 	 	 	5.1356	 	 	 	3.5722	 	 	 	2.5664	 	 	 	1.9160	 	 	 	1.4910	 	 	 	1.0138	 	 	 	0.7749	 	 	 	0.6438	 	 	 	0.5564	 	 	 	0.4177	 	 	 	0.3304	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	August 15, 2013
	 	 	7.3092	 	 	 	5.7801	 	 	 	4.5271	 	 	 	2.7629	 	 	 	1.7136	 	 	 	1.1153	 	 	 	0.7816	 	 	 	0.4854	 	 	 	0.3793	 	 	 	0.3226	 	 	 	0.2833	 	 	 	0.2159	 	 	 	0.1714	 
	August 20, 2014
	 	 	7.3092	 	 	 	5.7831	 	 	 	4.1164	 	 	 	1.3386	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 

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

	 	1.	 	between two Stock Prices on the table or the Effective Dates is between two
dates on the table, the number of shares of Additional Common Stock will be determined
by straight-line interpolation between the number of shares of Additional Common Stock
set forth for the higher and lower Stock Prices and the two Effective Dates, as
applicable, based on a 360-day year.
	 
	 	2.	 	in excess of $150.00 per share (subject to adjustment), no increase in the
Conversion Rate will be made;
	 
	 	3.	 	less than $35.47 per share (subject to adjustment), no increase in the
Conversion Rate will be made.

          Notwithstanding the foregoing, in no event will (i) the Conversion Rate exceed 28.1928 shares
per $1,000 principal amount of Securities subject to proportional adjustments in the same manner as
the Conversion Rate as set forth in clauses (1) through (3) of Section 4.6(a) or (ii) the number of
shares of Common Stock issuable upon conversion of the Securities exceed 19.99% of the Company’s
shares of Common Stock outstanding as of July 28, 2009, in each case, subject to proportional
adjustments in the same manner as the Conversion Rate as set forth in clauses (1) through (3) of
Section 4.6(a).

          Upon surrender of Securities for conversion in connection with a Non-Stock Fundamental Change,
the Company will deliver shares of Common Stock calculated based on the Conversion Rate as adjusted
by the shares of Additional Common Stock; provided however, that in connection with a Fundamental
Change in which the holders of the Company’s Common Stock receive only cash consideration for their
shares of Common Stock (in a single per-share amount, other than with respect to appraisal and
similar rights), the Company will settle conversions by delivering, on the 10th Business
Day after the Conversion Date, for each $1,000 principal amount of Securities, an amount of cash
equal to (i) the Conversion Rate, increased by the shares of Additional Common Stock, if any,
calculated as set forth in this Section 3.7(i), multiplied by (ii) the per-share amount of cash
consideration paid in such Fundamental Change.

          SECTION 4.2. CONVERSION PROCEDURE.

          (a) To convert a Security, a Holder must (1) complete and manually sign the conversion
notice on the back of the Security and deliver such notice to a Conversion Agent, (2) surrender
the Security to a Conversion Agent, (3) furnish appropriate endorsements and transfer documents
if required by a Registrar

33

 

or a Conversion Agent, and (4) pay any transfer or similar tax or
interest, if required. The date on which the Holder satisfies all of those requirements is the
“Conversion Date.” Upon the conversion of a Security, the Company will pay the cash and
deliver the shares of Common Stock, if any, deliverable upon conversion in accordance with the
terms of this Article 4, as promptly as practicable after the end of the Conversion Reference
Period with respect to the converted Securities, but in no event later than three Business Days
after the expiration of the Conversion Reference Period (such third Business Day marking the end
of the “Conversion Settlement Period”). Anything herein to the contrary notwithstanding,
in the case of Global Securities, conversion notices may be delivered and such Securities may be
surrendered for conversion in accordance with the Applicable Procedures as in effect from time to
time.

          (b) To the extent the Company elects to satisfy any of its conversion obligations through
delivery of shares of Common Stock, the person in whose name such shares of Common Stock are
issuable shall be deemed to be a holder of record of such Common Stock on the expiration of the
Conversion Reference Period. As of the Conversion Date, such person shall no longer be a Holder
of any Security converted on such Conversion Date. No payment will be made for dividends or
distributions declared or made on shares of Common Stock issuable upon conversion of a Security
prior to the issuance of such shares, and Holders will not be entitled to receive any dividends
or distributions payable to holders of Common Stock as of any record date before the close of
business on the Conversion Date; provided, however, that if any dividends or distributions are
declared or made on shares of Common Stock between the Conversion Date and the expiration of the
Conversion Reference Period, then upon the expiration of the Conversion Reference Period, the
Holders of any shares of Common Stock issued upon conversion shall be entitled to such dividends
or distributions with respect to the shares of Common Stock so issued.

          (c) Securities surrendered for conversion (in whole or in part) during the period from the
close of business on any Regular Record Date to the opening of business on the next succeeding
Interest Payment Date shall also be accompanied by payment in funds acceptable to the Company of
an amount equal to the interest payable on such corresponding Interest Payment Date on the
principal amount of such Security then being converted; provided that no such payment need be
made (i) if the Company has called Securities for redemption in accordance with Section 3.1
hereof on a Redemption Date that falls after a Regular Record Date for an Interest Payment Date
and on or prior to the related Interest Payment Date, (ii) for conversions following the Regular
Record Date immediately preceding the Final Maturity Date, (iii) if the Company has specified a
Fundamental Change Purchase Date that is after a Regular Record Date and on or prior to the
corresponding Interest Payment Date, or (iv) to the extent of any overdue interest, if any
overdue interest is payable at the time of conversion with respect to such Security. Except as
otherwise provided in this Section 4.2, no payment or adjustment will be made for accrued
interest on a converted Security.

          (d) Nothing in this Section shall affect the right of a Holder in whose name any Security is
registered at the close of business on a Regular Record Date to receive the interest payable on
such Security on the related Interest Payment Date in accordance with the terms of this Indenture
and the Securities. If a Holder converts more than one Security at the same time, the amount of
cash to be paid and the number of shares of Common Stock issuable upon the conversion, if any,
(and the amount of any
cash in lieu of fractional shares pursuant to Section 4.3) shall be based on the aggregate
principal amount of all Securities so converted.

34

 

          (e) In the case of any Security which is converted in part only, upon such conversion the
Company shall execute and the Trustee shall authenticate and deliver to the Holder thereof, at
the expense of the Company, a new Security or Securities of authorized denominations in an
aggregate principal amount equal to, and in exchange for, the unconverted portion of the
principal amount of such Security. A Security may be converted in part, but only if the
principal amount of such part is a multiple of $1,000 and the principal amount of such Security
to remain outstanding after such conversion is equal to $1,000 or any multiple of $1,000 in
excess thereof.

          SECTION 4.3. FRACTIONAL SHARES.

          The Company will not issue fractional shares of Common Stock upon conversion of Securities.
If more than one Security shall be surrendered for conversion at one time by the same Holder, the
number of full shares, if any, that shall be issuable upon conversion shall be computed on the
basis of the aggregate principal amount of the Securities (or specified portions thereof to the
extent permitted hereby) so surrendered. In lieu of any fractional shares, the Company will pay an
amount in cash for the current market value of the fractional shares. The current market value of
a fractional share shall be determined (calculated to the nearest 1/10,000th of a share)
by multiplying the Closing Price of the Common Stock on the Conversion Date by such fractional
share and rounding the product to the nearest whole cent.

          SECTION 4.4. TAXES ON CONVERSION.

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

          SECTION 4.5. COMPANY TO PROVIDE STOCK.

          (a) The Company shall from time to time as may be necessary reserve, out of its authorized
but unissued Common Stock, or hold as treasury stock, a sufficient number of shares of Common
Stock to permit the delivery of shares of Common Stock upon conversion of all outstanding
Securities in accordance with Section 4.14.

          (b) Any shares of Common Stock delivered upon conversion of the Securities shall be newly
issued shares or shares issued out of treasury stock, shall be duly authorized, validly issued,
fully paid and nonassessable and shall be free from preemptive or similar rights and free of any
lien or adverse claim.

          (c) The Company will endeavor promptly to comply with all federal and state securities laws
regulating the offer and delivery of shares of Common Stock upon conversion of Securities, if
any, and will list or cause to have quoted such shares of Common Stock on each national
securities exchange or other over-the-counter market or such other market on which the Common
Stock is then listed or quoted;

35

 

provided, however, that if rules of such exchange
or automated quotation system permit the Company to defer the listing of such Common Stock until
the first conversion of the Securities into Common Stock in accordance with the provisions of
this Indenture, the Company covenants to list such Common Stock issuable upon conversion of the
Securities in accordance with the requirements of such exchange or automated quotation system at
such time. Any Common Stock issued upon conversion of a Security hereunder which at the time of
conversion was a Restricted Security will also be treated as a Restricted Security.

          SECTION 4.6. ADJUSTMENT OF CONVERSION RATE

          (a) The Conversion Rate shall be adjusted from time to time by the Company if any of the
following events occurs, except that the Company will not make any adjustment to the Conversion
Rate if Holders of Securities participate, as a result of holding the Securities, in any of the
transactions described under Section 4.6(a)(1) (but only with respect to stock dividends or
distributions), Section 4.6(a)(2), Section 4.6(a)(3), and Section 4.6(a)(4), at the same time as
holders of the Common Stock participate, without having to convert their Securities, as if such
Holders held a number of shares of Common Stock equal to the Conversion Rate in effect for such
Securities immediately prior to the Ex-Dividend Date for such event.

          1. If the Company, at any time or from time to time while any of the Securities are
outstanding, exclusively issues shares of its Common Stock as a dividend or distribution on shares
of Common Stock, or if the Company effects a share split or share combination, then the Conversion
Rate will be adjusted based on the following formula:

	 	 	 	 	 
	CR1
     =     CR0      ×
	 	OS1
 

OS0
	 	 

	 	 	 
	where
	 	 
	 
	 	 
	CR0 =

	 	The Conversion Rate in effect immediately prior to the
opening of business on the Ex-Dividend Date of such
dividend or distribution, or immediately prior to the
opening of business on the effective date of such share
split or combination, as applicable;
	 
	 	 
	CR1 =

	 	The Conversion Rate in effect immediately after the
opening of business on such Ex-Dividend Date or such
effective date;
	 
	 	 
	OS0 =

	 	The number of shares of Common Stock outstanding
immediately prior to the opening of business on such
Ex-Dividend Date or such effective date; and
	 
	 	 
	OS1 =

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

Such adjustment shall become effective immediately after the opening of business on the Ex-Dividend
Date for such dividend or distribution or the effective date for such share split or share
combination. If any

36

 

dividend or distribution of the type described in this Section 4.6(a)(1) is
declared but not so paid or made, the Conversion Rate shall again be adjusted to the Conversion
Rate which would then be in effect if such dividend or distribution had not been declared.

          2. If the Company, at any time or from time to time while any of the Securities are
outstanding, issues to all or substantially all holders of the Common Stock any rights or warrants
entitling them for a period of not more than 60 calendar days after the announcement date of such
issuance to subscribe for or purchase shares of the Common Stock at a price per share less than the
average of the Closing Prices of Common Stock for the 10 consecutive Trading-Day period ending on
the Trading Day immediately preceding the date of announcement of such issuance, the Conversion
Rate shall be adjusted based on the following formula:

	 	 	 	 	 
	CR1
     =     CR0     ×	 	OS0  +
 X
 

OS0 +
Y
	 	 

	 	 	 
	where
	 	 
	 
	 	 
	CR0 =

	 	The Conversion Rate in effect immediately prior to the opening of business on the Ex-Dividend Date for such
issuance;
	 
	 	 
	CR1 =

	 	The Conversion Rate in effect immediately after the opening of business on such Ex-Dividend Date;
	 
	 	 
	OS0 =

	 	The number of shares of Common Stock outstanding immediately prior to the opening of business on such
Ex-Dividend Date;
	 
	 	 
	X =

	 	The total number of shares of Common Stock issuable pursuant to such rights or warrants; and
	 
	 	 
	Y =

	 	The number of shares of Common Stock equal to the aggregate price payable to exercise such rights or warrants
divided by the average of the Closing Prices of the Common Stock over the 10 consecutive Trading Day period
ending on the Trading Day immediately preceding the date of announcement of the issuance of such rights or
warrants.

To the extent such rights or warrants are not exercised prior to their expiration or termination,
the Conversion Rate shall be readjusted to the Conversion Rate which would be in effect had the
adjustments made upon the issuance of such rights or warrants been made on the basis of the delivery of only the number of
shares of Common Stock actually delivered. In the event that such rights or warrants are not so
issued, the Conversion Rate shall again be adjusted to be the Conversion Rate which would then be
in effect if the date fixed for the determination of shareholders entitled to receive such rights
or warrants had not been fixed. For the purposes of this Section 4.6(a)(2), in determining whether
any rights or warrants entitle the holders to subscribe for or purchase shares of Common Stock at
less than the average of the Closing Prices of Common Stock for the 10 consecutive Trading Day
period ending on the Trading Day immediately preceding the date of announcement of such issuance,
and in determining the aggregate exercise price payable for such shares of Common Stock, there
shall be taken into account any consideration received by the Company
for such rights or warrants and

37

 

any amount payable on the exercise thereof, with the value of such consideration, if other than
cash, as shall be determined in good faith by the Board of Directors.

          3. If the Company, at any time or from time to time while the Securities are outstanding,
distributes shares of any class of capital stock of the Company, evidences of its indebtedness,
other assets or property of the Company or rights or warrants to acquire the Company’s capital
stock or other securities to all or substantially all holders of its Common Stock, excluding:

          (i) dividends or distributions and rights or warrants as to which an adjustment was
effected pursuant to Section 4.6(a)(1) or Section 4.6(a)(2);

          (ii) dividends or distributions paid exclusively in cash as to which an adjustment was
effected pursuant to Section 4.6(a)(4); and

          (iii) Spin-Offs to which the provisions set forth below in this Section 4.6(a)(3) shall apply;
then the Conversion Rate shall be adjusted based on the following formula:

	 	 	 	 	 
	CR1
     =     CR0      ×
	 	SP0
 

SP0
– FMV
	 	 

where

	 	 	 
	CR0 =

	 	The Conversion Rate in effect immediately prior to the opening
of business on the Ex-Dividend
Date for such distribution;
	 
	
CR1 =

	 	The Conversion Rate in effect immediately after the opening of business on such Ex-Dividend Date;
	 
	SP0 =

	 	The average of the Closing Prices of the Common Stock over the
10 consecutive Trading Day period
ending on the Trading Day immediately preceding the Ex-Dividend Date for such distribution; and
	 
	FMV =

	 	The fair market value (as determined by the Board of Directors) of the shares of capital stock,
evidences of indebtedness, assets, property, rights or warrants distributed with respect to each
outstanding share of the Common Stock on the Ex-Dividend Date for such distribution.

Such adjustment shall become effective immediately after the opening of business on the Ex-Dividend
Date for such distribution. If the Board of Directors determines the “FMV” (as defined above) of
any distribution for purposes of this Section 4.6(a)(3) by reference to the actual or when issued
trading market for any securities, it must in doing so consider the prices in such market over the
same period used in computing the average of the Closing Prices of the Common Stock.
Notwithstanding the foregoing, if “FMV” (as defined above) is equal to or greater than
“SP0” (as defined above), in lieu of the foregoing adjustment, each Holder of Securities
shall receive, at the same time and upon the same terms as holders of the Common Stock, the amount
and kind of securities and assets such Holder would have received as if such Holder owned a number

38

 

of shares of Common Stock equal to the Conversion Rate in effect immediately prior to the
Ex-Dividend Date for the distribution of the securities or assets.

With respect to an adjustment pursuant to this Section 4.6(a)(3) where there has been a payment of
a dividend or other distribution on the Common Stock of shares of capital stock of any class or
series, or similar equity interest, of or relating to a Subsidiary or other business unit and such
dividend or distribution is listed for trading on a securities exchange (a “Spin-Off”), in
lieu of making the above adjustment set forth in this Section 4.6(a)(3) the Conversion Rate shall
instead be increased based on the following formula:

	 	 	 	 	 
	CR1
     =     CR0     ×	 	FMV0 +
 MP0
 

MP0
	 	 

where

	 	 	 
	CR0 =

	 	The Conversion Rate in effect immediately prior to the end of the Valuation Period (as defined below);
	 
	CR1 =

	 	The Conversion Rate in effect immediately after the end of the Valuation Period;
	 
	FMV0 =

	 	The average of the Closing Prices of the capital stock or similar equity interest distributed to holders of
Common Stock applicable to one share of Common Stock (determined for purposes of the definition of Closing
Price as if such capital stock or similar equity interest were the Common Stock) over the first ten
consecutive Trading Day period after, and including, the Ex-Dividend Date of the Spin-Off (the “Valuation
Period”); and
	 
	MP0 =

	 	The average of the Closing Prices of Common Stock over the Valuation Period.

The adjustment to the Conversion Rate under the preceding paragraph will occur on the last day of
the Valuation Period; provided that in respect of any conversion during the Valuation Period,
references above to ten Trading Days shall be deemed replaced with such lesser number of Trading
Days as have elapsed between the Ex-Dividend Date of such Spin-Off and the Conversion Date in
determining the applicable Conversion Rate.

For the purposes of this Section 4.6(a)(3) (and subject in all respects to Section 4.10), rights or
warrants distributed by the Company to all holders of its Common Stock entitling them to subscribe
for or purchase shares of the Company’s capital stock (either initially or under certain
circumstances), which rights or warrants, until the occurrence of a specified event or events (a
“Trigger Event”): (1) are deemed to be transferred with such shares of Common Stock; (2)
are not exercisable; and (3) are also issued in respect of future issuances of Common Stock, shall
be deemed not to have been distributed for purposes of this Section
4.6(a)(3), (and no adjustment to the Conversion Rate under this Section 4.6(a)(3), will be
required) until the occurrence of the earliest Trigger Event, whereupon such rights and warrants
shall be deemed to have been distributed and an appropriate adjustment (if any is required) to the
Conversion Rate shall be made under this Section 4.6(a)(3), If any such right or warrant, including
any such existing rights or warrants distributed prior to the date of this Indenture, are subject
to events, upon the occurrence of which such rights or warrants become exercisable to purchase
different securities, evidences of indebtedness or other assets, then the date of the occurrence of
any and each such event shall be deemed to be the date of distribution and Ex-Dividend Date of such
deemed distribution (in which case the original rights or warrants shall be deemed

39

 

 to terminate and
expire on such date without exercise by any of the holders). In addition, in the event of any
distribution or deemed distribution of rights or warrants, or any Trigger Event or other event (of
the type described in the preceding sentence) with respect thereto that was counted for purposes of
calculating a distribution amount for which an adjustment to the Conversion Rate under this Section
4.6(a)(3) was made, (1) in the case of any such rights or warrants which shall all have been
redeemed or purchased without exercise by any Holders thereof, upon such final redemption or
repurchase (x) the Conversion Rate shall be readjusted as if such rights or warrants had not been
issued and (y) the Conversion Rate shall then again be readjusted to give effect to such
distribution, deemed distribution or Trigger Event, as the case may be, as though it were a cash
distribution, equal to the per share redemption or purchase price received by holders of Common
Stock with respect to such rights or warrants (assuming each such holder had retained such rights
or warrants), made to all holders of Common Stock as of the date of such redemption or purchase,
and (2) in the case of such rights or warrants which shall have expired or been terminated without
exercise by any holders thereof, the Conversion Rate shall be readjusted as if such rights and
warrants had not been issued.

For the purposes of this Section 4.6(a)(3) and subsections (1) and (2) of this Section 4.6(a), any
dividend or distribution to which this Section 4.6(a)(3) applies which also includes one or both
of:

	 	(A)	 	a dividend or distribution of shares of Common Stock to which Section 4.6(a)(1)
applies (the “Clause A Distribution”); and
	 
	 	(B)	 	a dividend or distribution of rights or warrants to which Section 4.6(a)(2)
applies (the “Clause B Distribution”),

then (1) such dividend or distribution, other than the Clause A Distribution and the Clause B
Distribution, shall be deemed to be a dividend or distribution to which this Section 4.6(a)(3)
applies (the “Clause C Distribution”) and any Conversion Rate adjustment required by this
Section 4.6(a)(3) with respect thereto shall then be made, and (2) the Clause A Distribution and
Clause B Distribution shall be deemed to immediately follow the Clause C Distribution and any
Conversion Rate adjustment required by Section 4.6(a)(1)and Section 4.6(a)(2) with respect thereto
shall then be made, except that, if determined by the Company, (I) the “Ex-Dividend Date” of the
Clause A Distribution and the Clause B Distribution shall be deemed to be the Ex-Dividend Date of
the Clause C Distribution and (II) any shares of Common Stock included in the Clause A Distribution
or Clause B Distribution shall be deemed not to be “outstanding immediately prior to the opening of
business on such Ex-Dividend Date or such effective date” within the meaning of Section 4.6(a)(1)
or “outstanding immediately prior to the opening of business on such Ex-Dividend Date” within the
meaning of Section 4.6(a)(2).

          4. If the Company pays any cash dividend or distribution to all or substantially all holders
of Common Stock, the Conversion Rate shall be adjusted based on the following formula:

	 	 	 	 	 
	CR1
     =     CR0     ×
	 	SP0
 

SP0 – C
	 	 

where

	 	 	 
	CR0 =

	 	The Conversion Rate in effect immediately prior to the opening of business on the Ex-Dividend Date for such
dividend or distribution;

40

 

	 	 	 
	CR1 =

	 	The Conversion Rate in effect immediately after the opening of business on the Ex-Dividend Date for such
dividend or distribution;
	 
	SP0 =

	 	The Closing Price of a share of Common Stock on the Trading Day immediately preceding the Ex-Dividend Date for
such dividend or distribution; and
	 
	C =

	 	The amount in cash per share the Company distributes to holders of Common Stock.

In the case of an adjustment pursuant to this Section 4.6(a)(4) such adjustment shall become
effective immediately after the opening of business on the Ex-Dividend Date for the relevant
dividend or distribution. If the portion of the cash so distributed applicable to one share of the
Common Stock is equal to or greater than the Closing Price of a share of Common Stock on the
Trading Day immediately preceding the Ex-Dividend Date for such dividend or distribution, in lieu
of the adjustment set forth above, adequate provision shall be made so that each Holder of
Securities shall have the right to receive on the date on which such cash dividend or distribution
is distributed to holders of Common Stock, for each $1,000 principal amount of Securities, the
amount of cash such Holder would have received had such Holder owned a number of shares of Common
Stock equal to the Conversion Rate in effect immediately prior to the Ex-Dividend Date for such
distribution.

          5. If the Company or any of its Subsidiaries makes a payment in respect of a tender offer or
exchange offer for Common Stock, and if and solely to the extent the cash and value of any other
consideration included in the payment per share of Common Stock exceeds the Closing Price per share
of Common Stock on the Trading Day next succeeding the last date on which tenders or exchanges may
be made pursuant to such tender or exchange offer, the Conversion Rate shall be increased based on
the following formula:

	 	 	 	 	 
	CR1
     =     CR0     ×  	 	AC + (SP1
     ×     OS1)
 

OS0 
    ×     SP1	 	 

where

	 	 	 
	CR0 =

	 	The Conversion Rate in effect immediately prior to the
close of business on the 10th Trading Day immediately
following, and including, the Trading Day next succeeding
the date such tender or exchange offer expires;
	 
	CR1 =

	 	The Conversion Rate in effect immediately after the close
of business on the 10th Trading Day immediately
following, and including, the Trading day next succeeding
the date such tender or exchange offer expires;
	 
	AC =

	 	The aggregate value of all cash and any other
consideration (as determined by the Board of Directors)
paid or payable for shares purchased in such tender or
exchange offer;
	 
	OS0 =

	 	The number of shares of Common Stock outstanding
immediately prior to the date such tender or exchange
offer expires;

41

 

	 	 	 
	OS1 =

	 	The number of shares of Common Stock outstanding
immediately after the date such tender or exchange offer
expires (after giving effect to, for the avoidance of
doubt, the purchase of all shares accepted for purchase
or exchange in such tender or exchange offer); and
	 
	SP1 =

	 	The average of the Closing Prices of Common Stock over
the 10 consecutive Trading Day period commencing on the
Trading Day next succeeding the date such tender or
exchange offer expires.

The adjustment to the Conversion Rate under this Section 4.6(a)(5) shall occur as of the close of
business on the tenth Trading Day from, and including, the Trading Day next succeeding the date
such tender or exchange offer expires; provided that in respect of any conversion within 10 Trading
Days immediately following, and including, the expiration date of any tender or exchange offer,
references with respect to 10 Trading Days shall be deemed replaced with such lesser number of
Trading Days as have elapsed between the expiration date of such tender or exchange offer and the
Conversion Date in determining the applicable Conversion Rate.

(b) In any case in which this Section 4.6 shall require that an adjustment be made following
an Ex-Dividend Date, established for the purposes specified in this Section 4.6, the Company
may elect to defer (but only until five Business Days following the filing by the Company
with the Trustee of the certificate described in Section 4.9) giving effect to any such
adjustment with respect to any Security converted after such Ex-Dividend Date; and, in lieu
of any cash, property or securities the issuance of which is so deferred, the Company shall
issue or cause its transfer agents to issue due bills or other appropriate evidence prepared
by the Company of the right to receive such cash, property or securities. If any
distribution in respect of which an adjustment to the Conversion Rate is required to be made
as of the Ex-Dividend Date thereafter made or paid by the Company for any reason, the
Conversion Rate shall be readjusted to the Conversion Rate which would then be in effect if
such Ex-Dividend Date had not occurred.

(c) For purposes of this Section 4.6, “Ex-Dividend Date” shall mean, with respect to
any dividend, distribution or other transaction or event in which the holders of Common
Stock have the right to receive any cash, securities or other property or in which the
Common Stock (or other applicable security) is exchanged or converted into any combination
of cash, securities or other property, the first date upon which the shares of Common Stock
trade on the application exchange or applicable market (as is used to determine the Closing
Price) regular way, without the right to receive such cash, security or other property.

          SECTION 4.7. NO ADJUSTMENT

          (a) Notwithstanding anything to the contrary in this Article 4, no adjustment to the
Conversion Rate shall be made:

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

42

 

          2. upon the issuance of any shares of Common Stock or options or rights to purchase those
shares pursuant to any present or future employee, director or consultant benefit plan or program
of or assumed by the Company or any of its Subsidiaries;

          3. upon the issuance of any shares of Common Stock pursuant to any option, warrant, right or
exercisable, exchangeable or convertible security not described in clause (2) above and outstanding
as of the date the Securities were first issued;

          4. for a change in the par value of the Common Stock; or

          5. for accrued and unpaid interest on the Securities.

          (b) All calculations under this Article 4 shall be made to the nearest cent or to the
nearest one-ten-thousandth of a share, as the case may be.

          (c) Notwithstanding anything to the contrary in Section 4.6, in no event shall the
Conversion Rate as adjusted in accordance with Section 4.6 exceed 28.1928 shares per $1,000
principal amount of Securities, other that on account of proportional adjustments to the
Conversion Rate in the manner set forth in clauses (1)-(3) of Section 4.6(a).

          SECTION 4.8. ADJUSTMENT FOR TAX PURPOSES.

          The Company shall be entitled to make such increases in the Conversion Rate, in addition to
those required by Section 4.6, as it in its discretion shall determine to be advisable in order
that any stock dividends, subdivisions of shares, distributions of rights to purchase stock or
securities, distributions of securities convertible into or exchangeable for stock or similar
events hereafter made by the Company to its stockholders shall not be taxable to, or to diminish
any income tax to, such stockholders.

          SECTION 4.9. NOTICE OF ADJUSTMENT.

          Whenever the Conversion Rate or conversion privilege is required to be adjusted pursuant to
this Indenture, the Company shall promptly deliver to Holders a notice of the adjustment in
accordance with Section 11.2 and file with the Trustee an Officers’ Certificate briefly stating the facts
requiring the adjustment and the manner of computing it. Unless and until the Trustee shall
receive an Officers’ Certificate setting forth an adjustment of the Conversion Rate, the Trustee
may assume without inquiry that the Conversion Rate has not been adjusted and that the last
Conversion Rate of which it has knowledge remains in effect.

          SECTION 4.10. NOTICE OF CERTAIN TRANSACTIONS.

          If otherwise than in connection with a Fundamental Change or a transaction that would result
in a Conversion Rate adjustment under Section 4.1(i) hereof or a transaction for which the Company
has delivered a Merger Notice in accordance with Section 4.1(c), in the event that:

          (a) the Company takes any action which would require an adjustment in the Conversion Rate;

43

 

          (b) the Company consolidates or merges with, or transfers all or substantially all of its
property and assets to, another corporation and stockholders of the Company must approve the
transaction; or

          (c) there is a dissolution or liquidation of the Company,

the Company shall mail to Holders and file with the Trustee a notice stating the proposed record
date or effective date, as the case may be. The Company shall mail such notice at least 10 days
before such proposed record date or effective date. Failure to mail such notice or any defect
therein shall not affect the validity of any transaction referred to in clause (a), (b) or (c) of
this Section 4.10.

SECTION 4.11. EFFECT OF RECLASSIFICATION, CONSOLIDATION, MERGER OR SALE ON CONVERSION
PRIVILEGE.

          (a) If any of the following shall occur, namely: (1) any reclassification or change of
 shares of Common Stock issuable upon conversion of the Securities (other than a change in par
value, or from par value to no par value, or from no par value to par value, or as a result of a
subdivision or combination or any other transaction or event for which an adjustment is provided
in Section 4.6); (2) any statutory share exchange, consolidation or merger or combination to
which the Company is a party other than a merger in which the Company is the continuing
corporation and which does not result in any reclassification of, or change (other than in par
value, or from par value to no par value, or from no par value to par value, or as a result of a
subdivision or combination) in, outstanding shares of Common Stock; or (3) any sale or conveyance
of all or substantially all the property and assets of the Company, directly or indirectly, to
any person, in each case, as a result of which holders of the Company’s Common Stock are entitled
to receive stock, other securities, other property or assets (including cash or any combination
thereof) with respect to or in exchange for the Company’s Common Stock, then the Company and any
such successor, purchasing or transferee corporation, as the case may be, shall, as a condition
precedent to such reclassification, change, combination, statutory share exchange, consolidation,
merger, sale or conveyance, execute and deliver to the Trustee a supplemental indenture to this
Indenture providing that the Holder of each Security then outstanding shall have the right to
convert such Security based on the kind and amount of shares of
stock and other securities and property (including cash) receivable upon such
reclassification, change, combination, statutory share exchange, consolidation, merger, sale or
conveyance by a holder of the number of shares of Common Stock equal to the Conversion Rate of
such Security immediately prior to such reclassification, change, combination, statutory share
exchange, consolidation, merger, sale or conveyance (the “Reference Property.”) However, at and
after the effective time of the transaction (x) the amount otherwise payable in cash upon
conversion of the Securities as set forth in Section 4.14 will continue to be payable in cash,
(y) the number of shares of Common Stock (if the Company does not elect to pay cash in lieu of
all such shares) otherwise deliverable upon the conversion of the Securities as set forth in
Section 4.14 will instead be deliverable in the amount and type of Reference Property that a
holder of that number of shares of Common Stock would have received in such transaction and (z)
the daily Closing Price will be calculated based on the value of a unit of Reference Property
that a holder of one share of Common Stock would have received in such transaction. If the
transaction causes the Company’s Common Stock to be converted into the right to receive more than
a single type of consideration (determined based in part upon any form of stockholder election),
the Reference Property into which the Securities will be convertible will be deemed to be the
weighted average of the types and amounts of consideration received by the holders of Common
Stock that affirmatively make such an election. Such

44

 

supplemental indenture shall (i) specify
the Conversion Rate immediately after such transaction, (ii) provide for adjustments of the
Conversion Rate which shall be as nearly equivalent as may be practicable to the adjustments of
the Conversion Rate provided for in this Article 4, (iii) set forth appropriate modifications to
the means of determining the Conversion Value and settlement provisions specified in this Article
4 so as to be as nearly equivalent to such provisions as may be practicable and (iv) make such
other modifications as are determined to be necessary to protect the interests of Holders of the
Securities as the Board of Directors shall reasonably consider necessary by reason of the
foregoing. If, in the case of any such consolidation, merger, combination, statutory share
exchange, sale or conveyance, the stock or other securities and property (including cash)
receivable thereupon by a holder of Common Stock include shares of stock or other securities and
property of a person other than the successor, purchasing or transferee corporation, as the case
may be, in such consolidation, merger, combination, statutory share exchange, sale or conveyance,
then such supplemental indenture shall also be executed by such other person and shall contain
such additional provisions to protect the interests of the Holders of the Securities as the Board
of Directors shall reasonably consider necessary by reason of the foregoing. The provisions of
this Section 4.11 shall similarly apply to successive reclassifications, changes, combinations,
consolidations, mergers, sales or conveyances.

          (b) In the event the Company shall execute a supplemental indenture pursuant to this Section
4.11, the Company shall promptly file with the Trustee (1) an Officers’ Certificate briefly
stating the reasons therefor, the kind or amount of shares of stock or other securities or
property (including cash) receivable by holders of the Company’s Common Stock in any such
reclassification, change, combination, consolidation, merger, sale or conveyance, the adjustments
to the Conversion Rate and other provisions of this Article 4 made in such supplemental indenture
and any other adjustment to be made with respect thereto and that all conditions precedent have
been complied with and (2) an Opinion of Counsel that all conditions precedent thereto and
hereunder have been complied with, and shall promptly mail notice thereof to all Holders.

          SECTION 4.12. TRUSTEE’S DISCLAIMER.

          (a) The Trustee shall have no duty to determine when an adjustment under this Article 4
should be made, how it should be made or what such adjustment should be, but may accept as
conclusive evidence of that fact or the correctness of any such adjustment, and shall be
protected in relying upon, an Officers’ Certificate including the Officers’ Certificate with
respect thereto which the Company is obligated to file with the Trustee pursuant to Section 4.9.
The Trustee makes no representation as to the validity or value of any securities or assets
issued upon conversion of Securities, and the Trustee shall not be responsible for the Company’s
failure to comply with any provisions of this Article 4.

          (b) The Trustee shall not be under any responsibility to determine the correctness of any
provisions contained in any supplemental indenture executed pursuant to Section 4.11, but may
accept as conclusive evidence of the correctness thereof, and shall be fully protected in relying
upon, the Officers’ Certificate with respect thereto which the Company is obligated to file with
the Trustee pursuant to Section 4.11.

45

 

          SECTION 4.13. VOLUNTARY INCREASE.

          In addition to the increases in the Conversion Rate pursuant to Section 4.8, the Company from
time to time may increase the Conversion Rate by any amount for any period of time if the period is
at least 20 Business Days and if the increase is irrevocable during the period if the Board of
Directors determines that such increase would be in the best interest of the Company and the
Company provides 15 days prior notice of any increase in the Conversion Rate; provided, however,
that in no event may the Company increase the Conversion Rate so that the adjusted Conversion Price
would be less than the par value of a share of Common Stock.

          SECTION 4.14. PAYMENT OF CASH IN LIEU OF COMMON STOCK.

          (a) In lieu of delivery of shares of Common Stock in an amount equal to the Conversion Rate
upon conversion of any Securities, Holders surrendering Securities for conversion shall receive
for each $1,000 principal amount of Securities surrendered: (A) cash in an amount equal to the
lesser of (1) $1,000 and (2) the Conversion Value; and (B) if the Conversion Value is greater
than $1,000, a number of shares of the Company’s Common Stock equal to the sum of the Daily Share
Amounts for each of the 20 consecutive Trading Days in the Conversion Reference Period (the
“Remaining Shares”), subject to the Company’s right to deliver cash in lieu of all or a
portion of such shares as set forth in Section 4.14(b). The Company will deliver such cash and
any shares of Common Stock, together with any cash payable for fractional shares, to such Holder
in accordance with Section 4.2 and Section 4.3.

          (b) The Company may elect to pay cash to the Holders of Securities surrendered for
conversion in lieu of all or a portion of the Common Stock otherwise issuable pursuant to Section
4.14(a). In such event, on any day prior to the first Trading Day of the applicable Conversion
Reference Period, the Company will specify a percentage of the Daily Share Amount that will be
settled in cash (the “Cash Percentage”) and the amount of cash that the Company will pay
in respect of each Trading Day in the applicable Conversion Reference Period will equal the
product of: (1) the Cash Percentage, (2) the Daily Share Amount for such Trading Day and (3) the
Closing Price of our Common Stock for such Trading Day (provided that after the consummation of a
Fundamental Change in which the consideration is comprised entirely of cash, the
amount used in this clause (3) will be the cash price per share received by holders of our
Common Stock in such Fundamental Change). The number of shares that the Company shall deliver in
respect of each Trading Day in the applicable Conversion Reference Period will be a percentage of
the Daily Share Amount equal to 100% minus the Cash Percentage. Upon making a determination that
a percentage of the Daily Share Amount will be settled in cash, the Company shall promptly
provide notice to the Holders and Trustee of such determination in accordance with Section 11.2.
If the Company does not specify a Cash Percentage by the start of the applicable Conversion
Reference Period, the Company shall settle 100% of the Daily Share Amount for each Trading Day in
the applicable Conversion Reference Period with shares of Common Stock; provided, however, that
the Company shall pay cash in lieu of fractional shares otherwise issuable upon conversion of
Securities in accordance with Section 4.3.

          (c) The Conversion Value, Daily Share Amounts, Closing Price, and the number of Remaining
Shares to be issued and amount of cash to be paid in respect of the Remaining Shares will be
determined by the Company at the end of the Conversion Reference Period. For the purposes of
Sections 4.14(a) and (b), in the event that any of the Conversion Value, Daily Share Amounts,
Closing Price, or the number of Remaining Shares to be issued and amount of cash to be paid in
respect of the Remaining Shares is not calculable for all portions of the Conversion Reference
Period or the calculations do not produce results consistent with the purpose of this provision,
the Company’s Board of Directors shall in good faith determine the values and algorithms necessary
to calculate the Conversion Value, Daily Share Amounts, and Closing Price, as applicable.

46

 

          SECTION 4.15. RIGHTS PLAN

          With respect to any rights (the “Rights”) that may be issued or distributed pursuant
to any Company rights plan (a “Rights Plan”), upon conversion of the Securities, to the
extent that such Rights Plan is in effect upon such conversion and to the extent the Company
delivers shares of Common Stock upon conversion, the Holders of Securities will receive, with
respect to such shares of Common Stock issued upon conversion, the Rights described therein
(whether or not the Rights have separated from the Common Stock at the time of conversion), subject
to the limitations set forth in and in accordance with any such Rights Plan. Any distribution of
Rights or warrants pursuant to a Rights Plan complying with the requirements set forth in the
immediately preceding sentence of this paragraph shall not constitute a distribution of rights or
warrants pursuant to Section 4.6(a)(3). There will not be any adjustment to the Conversion Rate as
the result of the issuance of any Rights, the distribution of separate certificates representing
such Rights, the exercise or redemption of such Rights in accordance with any Rights Plan or the
termination or invalidation of any Rights.

ARTICLE 5

COVENANTS

          SECTION 5.1. PAYMENT OF SECURITIES.

          (a) The Company shall promptly make all payments in respect of the Securities on the dates
and in the manner provided in the Securities and this Indenture. An installment of principal or
interest shall be considered paid on the date it is due if the Paying Agent (other than the
Company) holds by 11:00 a.m., New York City time, on that date money, deposited by or on behalf
of the Company sufficient to pay the installment. Subject to Section 4.2 hereof, accrued and
unpaid interest on any Security that is payable, and is punctually paid or duly provided for, on
any Interest Payment Date shall be paid to the Person in whose name that Security is registered
at the close of business on the Regular Record Date for such Interest Payment Date at the office
or agency of the Company maintained for such purpose. The Company shall, to the fullest extent
permitted by law, pay interest in immediately available funds on overdue principal (including
premium, if any) and overdue installments of interest at the rate borne by the Securities.

          (b) Payment of the principal of (and premium, if any) and interest on the Securities shall
be made at the office or agency of the Company maintained for that purpose in the Borough of
Manhattan, The City of New York (which shall initially be the Trustee) or at the Corporate Trust
Office of the Trustee in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts; provided, however, that at the
option of the Company payment of interest may be made by check mailed to the address of the
Person entitled thereto as such address appears in the Register; provided further that a Holder
with an aggregate principal amount in excess of $2,000,000 will be paid by wire transfer in
immediately available funds at the election of such Holder if such Holder has provided wire
transfer instructions to the Company at least 10 Business Days prior to the payment date.
Notwithstanding the foregoing, with respect to any Securities registered in the name of a
Depositary or its nominee, all payments thereon shall be made by wire transfer of immediately
available funds to the account of the Depositary or its nominee.

47

 

          SECTION 5.2. SEC REPORTS.

          (a) The Company shall file all reports and other information and documents which it is
required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act (after giving
effect to all applicable grace periods thereunder), and within 15 days after the same are
required to be filed with the SEC (after giving effect to all applicable grace periods
thereunder), the Company shall file copies of all such reports, information and other documents
with the Trustee; provided that any such reports, information and documents filed with
the SEC pursuant to its Electronic Data Gathering, Analysis and Retrieval system (or any
successor system) shall be deemed to be filed with the Trustee.

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

          SECTION 5.3. COMPLIANCE CERTIFICATES.

          The Company shall deliver to the Trustee, within 90 days after the end of each fiscal year of
the Company (beginning with the fiscal year ending December 31, 2009), an Officers’ Certificate as
to the signer’s knowledge of the Company’s compliance with all conditions and covenants on its part
contained in this Indenture and stating whether or not the signer knows of any default or Event of
Default. If such signer knows of such a default or Event of Default, the Officers’ Certificate
shall describe the default or Event of Default and the efforts to remedy the same. For the
purposes of this Section 5.3, compliance shall be determined without regard to any grace period or
requirement of notice provided pursuant to the terms of this Indenture.

          SECTION 5.4. FURTHER INSTRUMENTS AND ACTS.

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

          SECTION 5.5. MAINTENANCE OF CORPORATE EXISTENCE.

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

          SECTION 5.6. RULE 144A INFORMATION REQUIREMENT.

          Within the period prior to the expiration of the holding period applicable to sales thereof
under Rule 144(d), the Company covenants and agrees that it shall, during any period in which it is
not subject to Section 13 or 15(d) under the Exchange Act, upon the request of any Holder or
beneficial holder of the

48

 

Securities make available to such Holder or beneficial holder of
Securities in connection with any sale thereof and any prospective purchaser of Securities
designated by such Holder or beneficial holder, the information required pursuant to Rule
144A(d)(4) under the Securities Act and it will take such further action as any Holder or
beneficial holder of such Securities may reasonably request, all to the extent required from time
to time to enable such Holder or beneficial holder to sell its Securities without registration
under the Securities Act within the limitation of the exemption provided by Rule 144A, as such Rule
may be amended from time to time. Upon the request of any Holder or any beneficial holder of the
Securities, the Company will deliver to such Holder a written statement as to whether it has
complied with such requirements.

          SECTION 5.7. STAY, EXTENSION AND USURY LAWS.

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

          SECTION 5.8. ADDITIONAL INTEREST; RECEIPT OF REQUEST TO DELEGEND THE SECURITIES.

          If:

          (a) at any time during the six-month period beginning on, and including, the date which is six
months after the last date on which any of the Securities are originally issued, (i) the Company
fails to timely file any document or report that it is required to file with the SEC pursuant to
Section 13 or 15(d) of the Exchange Act, as applicable (after giving effect to all applicable grace
periods thereunder and other than Current Reports on Form 8-K), or (ii) the Securities are not
otherwise freely tradable by Holders other than Affiliates of the Company (as a result of
restrictions pursuant to U.S. federal securities law or the terms of the Indenture or the
Securities), or

          (b) commencing after any Holder has after the one-year anniversary of the last date on which
any of the Securities are originally issued requested in writing the removal of the Legend on the
Securities and the Legend has not been removed, or the Securities are not otherwise freely tradable
by Holders other than Affiliates of the Company (without restrictions pursuant to U.S. securities
law or the terms of the Indenture or the Securities) (each such event referred to in clauses (a)
and (b), a “Restricted Transfer Default”),

and the Company has not cured any such Restricted Transfer Default by the date that is 14 calendar
days following the occurrence of such Restricted Transfer Default (such date, the “Restricted
Transfer Triggering Date”), then the Company shall pay Additional Interest to all Holders of
Securities. The Company shall pay Additional Interest on the Securities will accrue at a rate per
annum equal to 0.25% of the principal amount of the Securities to but excluding the 90th
day following such Restricted Transfer Triggering Date (or such

49

 

 earlier date on which the
Restricted Transfer Default shall have been cured or waived) and at a rate per annum equal to 0.50%
of the principal amount of the Securities from and after the 90th day following such
Restricted Transfer Triggering Date while a Restricted Transfer Default is continuing until all
Restricted Transfer Defaults have been cured or waived. Following the cure or waiver of all
Restricted Transfer Defaults, the accrual of Additional Interest pursuant to this Section 5.8 shall
cease and the interest rate shall revert the original rate.

Following the cure of all Restricted Transfer Defaults, the accrual of Additional Interest arising
from Restricted Transfer Defaults will cease and the interest rate will revert to the original
rate. Additional Interest will be payable in arrears on each Interest Payment Date following
accrual in the same manner as regular interest on the Securities. Any Additional Interest paid
pursuant to this Section 5.8 will be payable at the
times and in the manner provided for the payment of regular interest in the Securities (and all
references herein to “interest” shall include the Additional Interest provided for in this Section
5.8).

The Additional Interest that is payable as a result of the occurrence of a Restricted Transfer
Default shall be in addition to, and not in lieu of, any Additional Interest that may be payable
pursuant to Section 7.2(b).

          (c) If Additional Interest is payable by the Company pursuant to this Section 5.8 or Section
7.2(b), the Company shall deliver to the Trustee a certificate to that effect stating (i) the
amount of such Additional Interest that is payable, (ii) the reason why such Additional Interest is
payable and (iii) the date on which such Additional Interest is payable. Unless and until a Trust
Officer of the Trustee receives such a certificate, the Trustee may assume without inquiry that no
such Additional Interest is payable. If the Company has paid Additional Interest directly to the
Persons entitled to such Additional Interest, the Company shall deliver to the Trustee a
certificate setting forth the particulars of such payment.

          (d) If the Company shall receive a written request from a Holder to remove the Legend on the
Securities one year after the last date on which any of the Securities are originally issued, the
Company shall promptly notify the Trustee in writing in accordance with Section 11.2.

ARTICLE 6

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

          SECTION 6.1. COMPANY MAY CONSOLIDATE, ETC., ONLY ON CERTAIN TERMS.

          (a) The Company may not, without the consent of Holders, consolidate with, merge into or
transfer all or substantially all of the Company’s assets unless:

          (1) either (A) the Company shall be the resulting or surviving corporation or (B) the
Person (if other than the Company) formed by such consolidation or into which the Company is
merged or the Person which acquires by conveyance, transfer or lease, all or substantially all
of the properties and assets of the Company shall (i) be a corporation, limited liability
company, partnership, trust or other business entity organized and existing under the laws of
the United States of America or any State thereof and (ii) expressly assume the due and punctual
payment of the principal of and any premium and interest on all the Securities and the
performance or observance of every covenant and provision of this Indenture

50

 

and the Securities
required on the part of the Company to be performed or observed and the conversion rights shall
be provided for in accordance with Article 4, by supplemental indenture satisfactory in form to
the Trustee, executed and delivered to the Trustee, by the Person (if other than the Company)
formed by such consolidation or into which the Company shall have been merged or by the Person
which shall have acquired the Company’s assets;

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

          (3) if the Company will not be the resulting or surviving corporation, the Company shall
have, at or prior to the effective date of such consolidation, merger or transfer, delivered to
the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such
consolidation, merger or transfer and, if a supplemental indenture is required in connection
with such transaction, such supplemental indenture complies with this Article and that all
conditions precedent herein provided for relating to such transaction have been complied with.

          (b) For purposes of the foregoing, the transfer (by lease, assignment, sale or otherwise) of
the properties and assets of one or more Subsidiaries of the Company (other than to the Company or
another Subsidiary of the Company), which, if such assets were owned by the Company, would
constitute all or substantially all of the properties and assets of the Company, shall be deemed to
be the transfer of all or substantially all of the properties and assets of the Company.

          SECTION 6.2. SUCCESSOR SUBSTITUTED.

          Upon any consolidation of the Company with, or merger of the Company into, any other Person or
any conveyance, transfer or lease of all or substantially all of the properties and assets of the
Company in accordance with Section 6.1, the successor Person formed by such consolidation or into
which the Company is merged or to which such conveyance, transfer or lease is made shall succeed
to, and be substituted for, and may exercise every right and power of, the Company under this
Indenture with the same effect as if such successor Person had been named as the Company herein,
and thereafter, except in the case of a lease, and except for obligations the predecessor Person
may have under a supplemental indenture, the predecessor Person shall be relieved of all
obligations and covenants under this Indenture and Securities.

ARTICLE 7

DEFAULT AND REMEDIES

          SECTION 7.1. EVENTS OF DEFAULT.

          (a) An “Event of Default” shall occur if:

          (1) the Company fails to pay when due the principal of, or premium, if any, on any of the
Securities at the Final Maturity Date, or upon a redemption or purchase pursuant to Article 3;

51

 

          (2) the Company fails to pay an installment of interest (including Additional Interest, if
any) on any of the Securities that continues for 30 days after the date when due;

          (3) the Company fails to satisfy in full its conversion obligations following conversion of
any Securities pursuant to Article 4 within the time periods contemplated by Section 4.2(a);

          (4) the Company fails to comply with its obligations under Article 6;

          (5) the Company fails to perform or observe any other term, covenant or agreement contained
in the Securities or this Indenture for a period of 45 days after the Notice of Default
specified below is given;

          (6) the Company fails to timely provide a Company Fundamental Change Notice when required
by Section 3.7(d);

          (7) the Company fails to make any payment at the end of the applicable grace period, if
any, after the maturity of any indebtedness for borrowed money with an aggregate principal
amount then outstanding in excess of $15,000,000, whether such indebtedness now exists or shall
hereafter be created, or there is an acceleration of indebtedness for borrowed money in an
amount in excess of $15,000,000 because of a default with respect to such indebtedness, and such
indebtedness, in either case, is not discharged, or such acceleration is not cured, waived,
rescinded or annulled, within a period of 30 days after there shall have been given a Notice of
Default, as defined below, requiring the Company to cause such indebtedness to be discharged or
cause such default to be cured or waived or such acceleration to be rescinded or annulled;

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

          (A) commences a voluntary case or proceeding;

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

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

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

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

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

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

52

 

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

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

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

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

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

          (b) A default under clauses (5) or (7) of Subsection 7.1(a) is not an Event of Default until
after there shall have been given, by registered or certified mail, to the Company by the Trustee
or to the Company and the Trustee by the Holders of at least 25% in aggregate principal amount of
the Securities then outstanding written notice specifying such default (the “Notice of
Default”), and the Company does not cure the default within the time specified in clauses (5)
or (7) of Subsection 7.1(a) after receipt of such notice. The Notice of Default must specify the
default, demand that it be remedied and state that the notice is a Notice of Default. When any
default under this Section 7.1 is cured, it ceases.

          (c) The Company will deliver to the Trustee, within 5 Business Days of becoming aware of the
occurrence of an Event of Default, written notice thereof. In addition, the Company shall deliver
to the Trustee, within 10 days after it becomes aware of the occurrence thereof, written notice of
any event which with the lapse of time would become an Event of Default under clause (5) or (7) of
Subsection 7.1(a).

          The Trustee shall not be charged with knowledge of any Event of Default unless written notice
thereof shall have been given to a Trust Officer at the Corporate Trust Office of the Trustee by
the Company, a Paying Agent, any Holder or any agent of any Holder or unless it acquires actual
knowledge of such Event of Default in the course of performing other duties pursuant to this
Indenture.

          SECTION 7.2. ACCELERATION.

          (a) If an Event of Default (other than an Event of Default specified in clause (8) or (9) of
Subsection 7.1(a) with respect to the Company) occurs and is continuing with respect to the
Company, the Trustee may, by notice to the Company, or the Holders of at least 25% in aggregate
principal amount of the Securities then outstanding may, by notice to the Company and the Trustee,
declare the principal amount, and all accrued and unpaid interest, if any, to the date of
acceleration on the Securities then outstanding (if not then due and payable) to be due and payable
upon any such declaration, and the same shall become and be immediately due and payable. If an
Event of Default specified in clause (8) or (9) of Subsection 7.1(a) occurs and is continuing with
respect to the Company, the principal amount, and all accrued and unpaid interest, if any, of the
Securities then outstanding shall ipso facto become and be immediately due and payable without

53

 

any
declaration or other act on the part of the Trustee or any Holder. The Holders of a majority in
aggregate principal amount of the Securities then outstanding by notice to the Trustee may rescind
an acceleration and its consequences if (a) all existing Events of Default, other than the
nonpayment of the principal, premium, if any and interest on the Securities which has become due
solely by such declaration of acceleration, have been cured or waived; (b) to the extent the
payment of such interest is lawful, interest (calculated at the rate per annum borne by the
Securities) on overdue installments of interest and overdue principal, which has become
due otherwise than by such declaration of acceleration, has been paid; (c) the rescission
would not conflict with any judgment or decree of a court of competent jurisdiction; and (d) all
payments due to the Trustee and any predecessor Trustee under Section 8.7 have been made. No such
rescission shall affect any subsequent default or impair any right consequent thereto.

          (b) Notwithstanding any other provision in this Article 7, if the Company breaches its
obligation to file or furnish reports or other financial information pursuant to Section 314(a) of
the TIA or as required by Section 5.2 hereof, the Company may elect to pay Additional Interest on
the Securities, which shall be the Holders’ sole and exclusive remedy for any such breach, and the
Holders shall not have any immediate right under the Indenture to accelerate the maturity of the
Securities as a result of any such breach, in each case, from the date of such breach to but not
including the 180th day following such breach. The Company will pay Additional Interest to all
Holders at a rate per annum equal to 0.25% of the principal amount of the Securities to but
excluding the 90th day following such breach (or such earlier date on which the Event of
Default relating to the reporting obligations referred to in this Section 7.2(b) shall have been
cured or waived) and at a rate per annum equal to 0.50% per annum from the 90th day
following such breach to but not including the 180th day following such breach (or such
earlier date on which the Event of Default relating to the reporting obligations referred to in
this Section 7.2(b) shall have been cured or waived). On such 180th day, such Additional Interest
will cease to accrue (or earlier, if the Event of Default relating to the reporting obligations
referred to in this Section 7.2(b) shall have been cured or waived prior to such 180th day) and, if
the Event of Default is continuing on such 180th day, the Securities will be subject to
acceleration as provided in Section 7.2(a). If the Company so elects, Additional Interest shall
accrue on all Securities from and including the date on which such Event of Default first occurs
until such violation is cured or waived. The provisions of this Section 7.2(b) will not affect the
rights of the Holders in the event of the occurrence of any other Event of Default, and are
separate and distinct from, and in addition to, the obligation of the Company to increase the
interest rate of, and the amount of interest payable on, the Securities pursuant to Section 5.8.
Any Additional Interest paid pursuant to this Section 7.2(b) will be payable at the times and in
the manner provided for the payment of regular interest in the Securities (and all references
herein to “interest” shall include the Additional Interest provided for in this Section 7.2(b)).

          If the Company elects to pay Additional Interest as the sole remedy during the first 180 days
after the occurrence of an Event of Default relating to the failure to comply with the reporting
obligations referred to in this Section 7.2(b), the Company shall notify all Holders, the Trustee
and Paying Agent of such election on or before the close of business on the business day
immediately prior to the date on which such Event of Default would occur. If the Company fails to
provide such notice or pay Additional Interest, the Securities will be immediately subject to
acceleration as provided in Section 7.2(a).

54

 

          SECTION 7.3. OTHER REMEDIES.

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

          (b) The Trustee may maintain a proceeding even if it does not possess any of the Securities or
does not produce any of them in the proceeding. A delay or omission by the Trustee or any Holder
in

exercising any right or remedy accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy is exclusive
of any other remedy. All available remedies are cumulative to the extent permitted by law.

          SECTION 7.4. WAIVER OF DEFAULTS AND EVENTS OF DEFAULT.

          Subject to Sections 7.7 and 10.2, the Holders of a majority in aggregate principal amount of
the Securities then outstanding by notice to the Trustee may waive an existing default or Event of
Default and its consequences, except a default or Event of Default in the payment of the principal
of, premium, if any, or interest, if any, on any Security (other than any such nonpayment which has
become due solely by a declaration of acceleration), a failure by the Company to satisfy its
payment obligations upon conversion of any Security or any default or Event of Default in respect
of any provision of this Indenture or the Securities which, under Section 10.2, cannot be modified
or amended without the consent of the Holder of each Security affected. When a default or Event of
Default is waived, it is cured and ceases.

          SECTION 7.5. CONTROL BY MAJORITY.

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

          SECTION 7.6. LIMITATIONS ON SUITS.

          (a) A Holder may not pursue any remedy with respect to this Indenture or the Securities
(except actions for payment of overdue principal, premium, if any, interest, if any, or failure of
the Company to satisfy its payment obligations upon conversion of any Security) unless:

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

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

          (3) such Holder or Holders offer to the Trustee reasonable indemnity to the Trustee against
any loss, liability or expense;

55

 

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

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

          (b) A Securityholder may not use this Indenture to prejudice the rights of another
Securityholder or to obtain a preference or priority over such other Securityholder.

          SECTION 7.7. RIGHTS OF HOLDERS TO RECEIVE PAYMENT AND TO CONVERT.

          Notwithstanding any other provision of this Indenture, the right of any Holder of a Security
to receive payment of the principal of and interest, if any, on or after the respective due dates
expressed in the Security and this Indenture, to convert such Security in accordance with Article 4
and to bring suit for the enforcement of any such payment on or after such respective dates or the
right to convert, is absolute and unconditional and shall not be impaired or affected without the
consent of the Holder.

          SECTION 7.8. COLLECTION SUIT BY TRUSTEE.

          If an Event of Default in the payment of principal or interest, if any, specified in clause
(1) or (2) of Subsection 7.1(a) occurs and is continuing, the Trustee may recover judgment in its
own name and as trustee of an express trust against the Company or another obligor on the
Securities for the whole amount of principal and accrued interest, if any, remaining unpaid,
together with, to the extent that payment of such interest is lawful interest on overdue principal
and overdue installments of interest in each case at the rate per annum borne by the Securities and
such further amount as shall be sufficient to cover the costs and expenses of collection, including
the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel.

          SECTION 7.9. TRUSTEE MAY FILE PROOFS OF CLAIM.

          The Trustee may file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and the
Holders allowed in any judicial proceedings relative to the Company (or any other obligor on the
Securities), its creditors or its property and shall be entitled and empowered to collect and
receive any money or other property payable or deliverable on any such claims and to distribute the
same, and any Custodian in any such judicial proceeding is hereby authorized by each Holder to make
such payments to the Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due to it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel, and any other amounts due the Trustee under Section 8.7, and to the extent that such
payment of the reasonable compensation, expenses, disbursements and advances in any such
proceedings shall be denied for any reason, payment of the same shall be secured by a lien on, and
shall be paid out of, any and all distributions, dividends, money, securities and other property
which the Holders may be entitled to receive in such proceedings, whether in liquidation or under
any plan of reorganization or arrangement or otherwise. Nothing herein contained shall be deemed
to authorize the Trustee to authorize or consent to, or, on behalf of

56

 

any Holder, to authorize,
accept or adopt any plan of reorganization, arrangement, adjustment or composition affecting the
Securities or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of
the claim of any Holder in any such proceeding.

          SECTION 7.10. PRIORITIES.

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

          (1) First, to the Trustee for amounts due under Section 9.7;

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

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

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

          SECTION 7.11. UNDERTAKING FOR COSTS.

          In any suit for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may
require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
fees and expenses, against any party litigant in the suit, having due regard to the merits and good
faith of the claims or defenses made by the party litigant. This Section 7.11 does not apply to a
suit made by the Trustee, a suit by a Holder pursuant to Section 7.7, or a suit by Holders of more
than 25% in aggregate principal amount of the Securities then outstanding.

ARTICLE 8

TRUSTEE

          SECTION 8.1. DUTIES OF TRUSTEE.

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

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

          (1) the Trustee need perform only those duties as are specifically set forth in this
Indenture and no others; and

57

 

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

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

          (1) this paragraph does not limit the effect of Subsection (b) of this Section 8.1;

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

          (3) the Trustee shall not be liable with respect to any action it takes or omits to take in
good faith in accordance with a direction received by it pursuant to Section 7.5.

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

Every provision of this Indenture that in any way relates to the Trustee is subject to Subsections
(a), (b), (c) and (d) of this Section 8.1.

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

          SECTION 8.2. RIGHTS OF TRUSTEE.

          (a) Subject to Section 8.1:

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

          (2) Before the Trustee acts or refrains from acting, it may require an Officers’
Certificate or an Opinion of Counsel, which shall conform to Section 11.4(b). The Trustee shall
not be liable for any action it takes or omits to take in good faith in reliance on such
Officers’ Certificate or Opinion.

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

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

58

 

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

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

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

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

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

          SECTION 8.3. INDIVIDUAL RIGHTS OF TRUSTEE.

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

          SECTION 8.4. TRUSTEE’S DISCLAIMER.

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

          SECTION 8.5. NOTICE OF DEFAULT OR EVENTS OF DEFAULT.

          If a Default or an Event of Default occurs and is continuing and if it is known to the
Trustee, the Trustee shall mail to each Securityholder notice of all uncured defaults or Events of
Default known to it

59

 

within 90 days after it occurs. However, the Trustee may withhold the notice
if and so long as a committee of its Trust Officers in good faith determines that withholding
notice is in the interests of Securityholders, except in the case of a default or an Event of
Default in payment of the principal of, or premium, if any, or interest on any Security when due or
in the payment of any redemption or purchase obligation, or the Company’s failure to satisfy its
conversion obligations.

          SECTION 8.6. REPORTS BY TRUSTEE TO HOLDERS.

          (a) If a report is required by TIA Section 313, within 60 days after each May 31, beginning
with the May 31 following the date of this Indenture, the Trustee shall mail to each Securityholder
a brief report dated as of such May 31 that complies with TIA Section 313(a). The Trustee also
shall comply with TIA Section 313(b)(2) and (c).

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

          SECTION 8.7. COMPENSATION AND INDEMNITY.

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

          (b) The Company shall indemnify the Trustee or any predecessor Trustee (which for purposes of
this Section 8.7 shall include its officers, directors, employees and agents) for, and hold it
harmless against, any and all loss, liability or expense including taxes (other than taxes based
upon, measured by or determined by the income of the Trustee), (including reasonable legal fees and
expenses) incurred by it in connection with the acceptance or administration of its duties under
this Indenture or any action or failure to act as authorized or within the discretion or rights or
powers conferred upon the Trustee hereunder including the reasonable costs and expenses of the
Trustee and its counsel in defending itself against any claim or liability in connection with the
exercise or performance of any of its powers or duties hereunder. The Trustee shall notify the
Company promptly of any claim asserted against the Trustee for which it may seek indemnity. The
Company need not pay for any settlement effected without its prior written consent, which shall not
be unreasonably withheld.

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

          (d) To secure the Company’s payment obligations in this Section 8.7, the Trustee shall have a
senior claim to which the Securities are hereby made subordinate on all money or property held or
collected

60

 

by the Trustee. The obligations of the Company under this Section 8.7 shall survive the
satisfaction and discharge of this Indenture or the resignation or removal of the Trustee.

          (e) When the Trustee incurs expenses or renders services after an Event of Default specified
in clause (8) or (9) of Subsection 7.1(a) occurs, the expenses and the compensation for the
services are intended to constitute expenses of administration under any Bankruptcy Law. The
provisions of this Section shall survive the termination of this Indenture.

          SECTION 8.8. REPLACEMENT OF TRUSTEE.

          (a) The Trustee may resign by so notifying the Company. The Holders of a majority in
aggregate principal amount of the Securities then outstanding may remove the Trustee by so
notifying the
Trustee and may, with the Company’s written consent, appoint a successor Trustee. The Company
may remove the Trustee if:

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

          (2) the Trustee is adjudged a bankrupt or an insolvent;

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

          (4) the Trustee becomes incapable of acting.

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

          (c) If a successor Trustee does not take office within 45 days after the retiring Trustee
resigns or is removed, the retiring Trustee, the Company or the Holders of 25% in principal amount
of the Securities then outstanding may petition any court of competent jurisdiction for the
appointment of a successor Trustee at the expense of the Company.

          (d) If the Trustee fails to comply with Section 8.10, any Holder may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

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

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

61

 

          (g) Notwithstanding replacement of the Trustee pursuant to this Section 8.8, the Company’s
obligations under Section 8.7 shall continue for the benefit of the retiring Trustee.

          SECTION 8.9. SUCCESSOR TRUSTEE BY MERGER, ETC.

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

          SECTION 8.10. ELIGIBILITY; DISQUALIFICATION.

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

          SECTION 8.11. PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY.

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

ARTICLE 9

SATISFACTION AND DISCHARGE OF INDENTURE

          SECTION 9.1. SATISFACTION AND DISCHARGE OF INDENTURE.

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

     (1) either

          (A) all Securities theretofore authenticated and delivered (other than (i) Securities
which have been destroyed, lost or stolen and which have been replaced or paid as provided
in Section 2.7 and (ii) Securities for whose payment money has theretofore been deposited in
trust and thereafter repaid to the Company as provided in Section 9.3) have been delivered
to the Trustee for cancellation; or

          (B) all such Securities not theretofore delivered to the Trustee for cancellation,

62

 

          (i) have become due and payable,

          (ii) will become due and payable at the Final Maturity Date within one year, or

          (iii) are to be called for redemption within one year under arrangements
reasonably satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the name, and at the expense, of the Company

     (2) and the Company has deposited with the Trustee or a Paying Agent (other than the
Company or any of its Affiliates) as trust funds in trust for the purpose of and in an amount
sufficient to pay and discharge the entire indebtedness on such Securities not theretofore
delivered to the Trustee for cancellation, for principal and interest to the date of such
deposit (in the case of Securities which have become due and payable) or to the Final Maturity
Date or Redemption Date, as the case may be. In the event that the Company exercises its right
to redeem the Securities as provided in Article 3, the Company shall have the right to withdraw
its funds previously deposited with the Trustee or Paying Agent pursuant to the immediately
preceding sentence;

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

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

          (b) Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company with respect to the conversion privilege of the Securities pursuant to Article 4, the
obligations of the Company to the Trustee under Section 8.7 and, if money shall have been deposited
with the Trustee pursuant to clause (2) of Subsection 9.1(a), the provisions of Sections 2.3, 2.4,
2.5, 2.6, 2.7 and 2.12, Articles 3 and 4, the last paragraph of Section 5.2 and this Article 9,
shall survive until the Securities have been paid in full.

          SECTION 9.2. APPLICATION OF TRUST MONEY.

          Subject to the provisions of Section 9.3, the Trustee or a Paying Agent shall hold in trust,
for the benefit of the Holders, all money deposited with it pursuant to Section 9.1 and shall apply
the deposited money in accordance with this Indenture and the Securities to the payment of the
principal of and interest on the Securities.

          SECTION 9.3. REPAYMENT TO COMPANY.

          (a) The Trustee and each Paying Agent shall promptly pay to the Company upon request any
excess money (1) deposited with them pursuant to Section 9.1 and (2) held by them at any time.

          (b) The Trustee and each Paying Agent shall, subject to applicable abandoned property laws,
pay to the Company upon request any money held by them for the payment of principal or interest or
upon conversion, redemption or purchase that remains unclaimed for two years after a right to such
money has matured; provided, however, that the Trustee or such Paying Agent, before being required
to make any such payment, may at the expense of the Company cause to be mailed to each Holder
entitled to such money notice

63

 

that such money remains unclaimed and that after a date specified therein, which shall be at
least 30 days from the date of such mailing, any unclaimed balance of such money then remaining
will be repaid to the Company. After payment to the Company, Holders entitled to money must look
to the Company for payment as general creditors unless an applicable abandoned property law
designates another person.

          SECTION 9.4. REINSTATEMENT.

          (a) If the Trustee or any Paying Agent is unable to apply any money in accordance with Section
9.2 by reason of any legal proceeding or by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such application, then the
Company’s obligations under this Indenture and the Securities shall be revived and reinstated as
though no deposit had occurred pursuant to Section 9.1 until such time as the Trustee or such
Paying Agent is permitted to apply all such money in accordance with Section 9.2; provided,
however, that if the Company has made any payment of the principal of or interest on any Securities
because of the reinstatement of its obligations, the Company shall be subrogated to the rights of
the Holders of such Securities to receive any such payment from the money held by the Trustee or
such Paying Agent.

          (b) If pursuant to the last sentence of Section 9.1(a)(2), the Company withdraws its
previously deposited funds as a result of its exercise of its redemption right, the Company’s
obligations under this Indenture and the Securities shall be revived and reinstated as though no
deposit has occurred pursuant to Section 9.1.

ARTICLE 10

AMENDMENTS, SUPPLEMENTS AND WAIVERS

          SECTION 10.1. WITHOUT CONSENT OF HOLDERS.

          (a) The Company and the Trustee may amend or supplement this Indenture or the Securities
without notice to or consent of any Securityholder for the purpose of:

          (1) adding to the Company’s covenants for the benefit of the Holders;

          (2) surrendering any right or power conferred upon the Company;

          (3) providing for conversion rights of Holders if any reclassification or change of Common
Stock or any consolidation, merger or sale of all or substantially all of the Company’s assets
occurs in accordance with Article 4 or Article 6;

          (4) increasing the Conversion Rate, provided that the increase will not adversely
affect the interests of Holders in any material respect;

          (5) complying with the requirements of the SEC in order to effect or maintain the
qualification of this Indenture under the TIA;

64

 

          (6) curing any ambiguity, omission, inconsistency or correcting or supplementing any
defective provision contained in this Indenture; provided that such modification or
amendment does not, in the good faith opinion of the Board of Directors and the Trustee,
adversely affect the interests of the Holders in any material respect;

          (7) adding or modifying any other provisions which the Company and the Trustee may deem
necessary or desirable and which will not adversely affect the interests of the Holders in any
material respect; or

          (8) providing for uncertificated Securities in addition to the certificated Securities so
long as such uncertificated Securities are in registered form for purposes of the Internal
Revenue Code of 1986, as amended.

          SECTION 10.2. WITH CONSENT OF HOLDERS.

          (a) The Company and the Trustee may amend or supplement this Indenture or the Securities with
the written consent of the Holders of at least a majority in aggregate principal amount of the
Securities then outstanding or by the adoption of a resolution at a meeting of Holders at which a
quorum is present by at least a majority in aggregate principal amount of the Securities
represented at the meeting. For purposes hereof, a Holder or Holders of at least a majority in
aggregate principal amount of Securities then outstanding shall constitute a quorum. The Holders
of at least a majority in aggregate principal amount of the Securities then outstanding may waive
compliance in a particular instance by the Company with any provision of this Indenture or the
Securities without notice to any Holder. However, notwithstanding the foregoing but subject to
Section 10.4, without the written consent of each Holder affected, an amendment, supplement or
waiver, including a waiver pursuant to Section 7.4, may not:

          (1) change the maturity of the principal of or any installment of interest on, any
Security, including any payment of Additional Interest, if any;

          (2) reduce the principal amount of, premium, if any, or the amount payable upon conversion
pursuant to Article 4, or redemption or purchase pursuant to Article 3, with respect to any
Security;

          (3) reduce the interest rate or interest, including any Additional Interest, with respect
to any Security;

          (4) change the place or the currency of payment of principal of, premium, if any, or
interest on any Security;

          (5) impair the right to institute suit for the enforcement of any payment on or with
respect to, or conversion of, any Security;

          (6) modify the Company’s obligation to purchase Securities, including the time of payment,
at the option of Holders or the Company’s right to redeem Securities, in a manner adverse to the
Holders;

65

 

          (7) except as otherwise permitted or contemplated by provisions of this Indenture
concerning corporate reorganizations, adversely affect the purchase option of Holders upon a
Fundamental Change or the conversion rights of Holders;

          (8) reduce the percentage in aggregate principal amount of Securities outstanding necessary
or the quorum requirements necessary to modify or amend this Indenture or to waive any past
default.

          (b) After an amendment, supplement or waiver under this Section 10.2 becomes effective, the
Company shall promptly mail to the Holders affected thereby a notice briefly describing the
amendment, supplement or waiver. Any failure of the Company to mail such notice, or any defect
therein, shall not, however, in any way impair or affect the validity of any such amendment,
supplement or waiver.

          SECTION 10.3. COMPLIANCE WITH TRUST INDENTURE ACT.

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

          SECTION 10.4. REVOCATION AND EFFECT OF CONSENTS.

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

          (b) After an amendment, supplement or waiver becomes effective, it shall bind every
Securityholder, unless it makes a change described in any of clauses (1) through (8) of Subsection
10.2(a). In that case the amendment, supplement or waiver shall bind each Holder of a Security who
has consented to it and every subsequent Holder of a Security or portion of a Security that
evidences the same debt as the consenting Holder’s Security.

          SECTION 10.5. NOTATION ON OR EXCHANGE OF SECURITIES.

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

          SECTION 10.6. TRUSTEE TO SIGN AMENDMENTS, ETC.

          The Trustee shall sign any amendment or supplemental indenture authorized pursuant to this
Article 10 if the amendment or supplemental indenture does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. If it does, the Trustee may, in its sole discretion, but
need not sign it. In signing or refusing to sign such amendment or supplemental indenture, the
Trustee shall be entitled to receive and,

66

 

subject to Section 8.1, shall be fully protected in
relying upon, an Opinion of Counsel stating that such amendment or supplemental indenture is
authorized or permitted by this Indenture. The Company may not sign an amendment or supplement
indenture until the Board of Directors approves it.

          SECTION 10.7. EFFECT OF SUPPLEMENTAL INDENTURES.

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

ARTICLE 11

MISCELLANEOUS

          SECTION 11.1. TRUST INDENTURE ACT CONTROLS.

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

          SECTION 11.2. NOTICES.

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

If to the Company, to:

Sybase, Inc.

One Sybase Drive

Dublin, California 94568

Attention: General Counsel

Facsimile No.: (925) 236-6824

67

 

with a copy to:

Paul, Hastings, Janofsky & Walker LLP

1117 S. California Avenue

Palo Alto, California 94304

Attention: Robert Claassen

Facsimile No.: (650) 320-1984

if to the Trustee, to:

U.S. Bank National Association

633 West Fifth Street, 24th Floor

LM-CA-T24T

Los Angeles, California 90071

Attn: Corporate Trust Services (Sybase, Inc. — 3.50% Convertible Senior Notes due 2029)

Facsimile No.: (213) 615-6197

          Such notices or communications shall be effective when received.

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

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

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

          SECTION 11.3. COMMUNICATIONS BY HOLDERS WITH OTHER HOLDERS.

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

          SECTION 11.4. CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT.

          (a) Upon any request or application by the Company to the Trustee to take any action under
this Indenture, the Company shall furnish to the Trustee at the request of the Trustee:

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

68

 

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

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

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

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

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

          (4) a statement as to whether or not, in the opinion of such person, such condition or
covenant has been complied with;

provided, however, that with respect to matters of fact an Opinion of Counsel may
rely on an Officers’ Certificate or certificates of public officials.

          SECTION 11.5. RECORD DATE FOR VOTE OR CONSENT OF SECURITYHOLDERS.

          The Company (or, in the event deposits have been made pursuant to Section 9.1, the Trustee)
may set a record date for purposes of determining the identity of Holders entitled to vote or
consent to any action by vote or consent authorized or permitted under this Indenture, which record
date shall not be more than thirty (30) days prior to the date of the commencement of solicitation
of such action. Notwithstanding the provisions of Section 10.4, if a record date is fixed, those
persons who were Holders of Securities at the close of business on such record date (or their duly
designated proxies), and only those persons, shall be entitled to take such action by vote or
consent or to revoke any vote or consent previously given, whether or not such persons continue to
be Holders after such record date.

          SECTION 11.6. RULES BY TRUSTEE, PAYING AGENT, REGISTRAR AND CONVERSION AGENT.

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

          SECTION 11.7. LEGAL HOLIDAYS.

          A “Legal Holiday” is a Saturday or Sunday or a day on which state or federally
chartered banking institutions in New York, New York are authorized or obligated to close. If a
payment date is a

69

 

Legal Holiday, payment shall be made on the next succeeding day that is not a
Legal Holiday, and no interest shall accrue for the intervening period. If a Regular Record Date
is a Legal Holiday, the record date shall not be affected.

          SECTION 11.8. GOVERNING LAW.

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

          SECTION 11.9. NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS.

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

          SECTION 11.10. NO RECOURSE AGAINST OTHERS.

          All liability described in paragraph 18 of the Securities of any director, officer, employee
or stockholder, as such, of the Company is waived and released.

          SECTION 11.11. SUCCESSORS.

          All agreements of the Company in this Indenture and the Securities shall bind its successor.
All agreements of the Trustee in this Indenture shall bind its successor.

          SECTION 11.12. MULTIPLE COUNTERPARTS.

          The parties may sign multiple counterparts of this Indenture. Each signed counterpart shall
be deemed an original, but all of them together represent the same agreement.

          SECTION 11.13. SEPARABILITY.

          In case any provisions in this Indenture or in the Securities shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

          SECTION 11.14. TABLE OF CONTENTS, HEADINGS, ETC.

          The table of contents, cross-reference sheet and headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not to be considered a part
hereof, and shall in no way modify or restrict any of the terms or provisions hereof.

[SIGNATURE PAGE FOLLOWS]

70

 

     IN WITNESS WHEREOF, the parties hereto have hereunto set their hands as of the date and year
first above written.

	 	 	 	 	 
	 	Sybase, Inc.

 	 
	 	By:  	/s/
Daniel R. Carl	 
	 	Name:  	 	Daniel R. Carl	 
	 	Title:  	 	Vice President, General Counsel and Secretary	 
	 
	 	 	 
	 	By:  	/s/
Jeff G. Ross
 	 
	 	Name:  	 	Jeff G. Ross  	 
	 	Title:  	 	Senior Vice President and Chief Financial
Officer	 
	 
	 	U.S. Bank National Association, as Trustee

 	 
	 	By:  	 /s/ Paula Oswald	 
	 	Name:  	 	Paula Oswald 	 
	 	Title:  	 	Vice President 	 
	 

[Signature page to the Indenture]

 

 

EXHIBIT A

[FORM OF FACE OF SECURITY]

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY IS EXCHANGEABLE FOR
SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR
IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE
BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE
DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.1

     THE OFFER AND SALE OF THIS SECURITY AND ANY SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF
THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY, ANY SHARES OF COMMON STOCK
ISSUABLE UPON CONVERSION OF THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY
BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
REGISTRATION. EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY
MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY
RULE 144A THEREUNDER.

 

			
	1	 	These paragraphs should be included only if the
Security is a Global Security.
	 
	2	 	These paragraphs to be included only if the Security is a
Restricted Security.

A-1

 

     THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES TO OFFER, SELL OR OTHERWISE
TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) THAT IS ONE
YEAR AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH SYBASE, INC. OR
ANY AFFILIATE OF SYBASE, INC. WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY)
ONLY (A) TO SYBASE, INC. OR ANY PARENT OR SUBSIDIARY THEREOF, (B) FOR SO LONG AS THE SECURITIES ARE
ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED
INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHICH NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO A REGISTRATION STATEMENT THAT HAS
BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, OR (D) PURSUANT TO ANOTHER AVAILABLE EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE RIGHT OF SYBASE, INC. AND
THE TRUSTEE’S PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (D), TO REQUIRE THE
DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF
THEM, AND IN EACH OF THE FOREGOING CASES, A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE
OTHER SIDE OF THIS SECURITY IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE. THIS
LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION
DATE.2

A-2

 

SYBASE, INC.

3.50% CONVERTIBLE SENIOR NOTES DUE 2029

			
	No.                     
	 	CUSIP: [                    ]*

     Sybase, Inc., a Delaware corporation (the “Company”, which term shall include any successor
corporation under the Indenture referred to on the reverse hereof), promises to pay to                    
            
            
             
   , or registered assigns, the principal sum of   
               
               
        
Dollars ($                    ) on August 15, 2029 [or such greater or lesser amount as is indicated on the
Schedule of Exchanges of Securities on the other side of this Security].3

Interest Payment Dates: February 15 and August 15.

Regular Record Dates: February 1 and August 1.

     This Security is convertible as specified on the other side of this Security. Additional
provisions of this Security are set forth on the other side of this Security.

SIGNATURE PAGE FOLLOWS

 

			
	*	 	Insert if the Security is a Global Security
	 
	3	 	This phrase should be included only if the Security is
a Global Security.

A-3

 

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

	 	 	 	 	 
	 	Sybase, Inc.

 	 
	 	By:  	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

Dated:

Trustee’s Certificate of Authentication: This is one of the

Securities referred to in the within-mentioned Indenture.

U.S. Bank National Association,

as Trustee

By:                                                            

Authorized Signatory

A-4

 

[FORM OF REVERSE SIDE OF SECURITY]

SYBASE, INC.

3.50% Convertible Senior Notes Due 2029

1. INTEREST

          Sybase, Inc., a Delaware corporation (the “Company”, which term shall include any successor
corporation under the Indenture hereinafter referred to), promises to pay interest on the principal
amount of this Security at the rate of 3.50% per annum. The Company shall pay interest
semiannually on February 15 and August 15 of each year, commencing February 15, 2010. Interest on
the Securities shall accrue from the most recent date to which interest has been paid or, if no
interest has been paid, from August 4, 2009; provided, however, that if there is not an existing
default in the payment of interest and if this Security is authenticated between a Regular Record
Date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall
accrue from such Interest Payment Date. Interest will be computed on the basis of a 360-day year
comprised of twelve 30-day months. Any reference herein to interest accrued or payable as of any
date shall include any Additional Interest accrued or payable on such date as provided in the
Indenture (as defined below).

          No sinking fund is provided for the Securities.

2. METHOD OF PAYMENT

          The Company shall pay interest on this Security (except defaulted interest) to the person who
is the Holder of this Security at the close of business on February 1 or August 1, as the case may
be, (each, a Regular Record Date) next preceding the related Interest Payment Date. The Holder
must surrender this Security to a Paying Agent to collect payment of principal. The Company will
pay principal of (and premium, if any) and interest in such coin or currency of the United States
of America that at the time of payment is legal tender for payment of public and private debts;
provided, however, that a Holder with an aggregate principal amount in excess of
$2,000,000 will be paid by wire transfer in immediately available funds at the election of such
Holder if such Holder has provided wire transfer instructions to the Company at least 10 Business
Days prior to the payment date. The Company may mail an interest check to the Holder’s registered
address. Notwithstanding the foregoing, so long as this Security is registered in the name of a
Depositary or its nominee, all payments hereon shall be made by wire transfer of immediately
available funds to the account of the Depositary or its nominee.

3. PAYING AGENT, REGISTRAR AND CONVERSION AGENT

          Initially, U.S. Bank National Association (the “Trustee”, which term shall include any
successor trustee under the Indenture hereinafter referred to) will act as Paying Agent, Registrar
and Conversion Agent. The Company may change any Paying Agent, Registrar or Conversion Agent
without notice to the Holder. The Company or any of its Affiliates may, subject to certain
limitations set forth in the Indenture, act as Paying Agent, Conversion Agent or Registrar.

A-5

 

4. INDENTURE, LIMITATIONS

          This Security is one of a duly authorized issue of Securities of the Company designated as its
3.50% Convertible Senior Notes due 2029 (the “Securities”), issued under an Indenture dated as of
August 4, 2009 (together with any supplemental indentures thereto, the “Indenture”), between the
Company and the Trustee. The terms of this Security include those stated in the Indenture and
those required by or made part of the Indenture by reference to the Trust Indenture Act of 1939, as
amended, as in effect on the date of the Indenture. This Security is subject to all such terms,
and the Holder of this Security is referred to the Indenture and said Act for a statement of them.

          The Securities are unsubordinated unsecured obligations of the Company limited to $400,000,000
aggregate principal amount. The Indenture does not limit
the ability of the Company to incur other debt, secured or unsecured.

5. OPTIONAL REDEMPTION

          Prior to August 20, 2014, this Security shall not be redeemable. The Company may, at its
option, redeem the Securities on or after August 20, 2014, in whole, or from time to time in part
(in multiples of $1,000), at a Redemption Price in cash equal to 100% of the principal amount of
the Securities to be redeemed, plus accrued and unpaid interest to, but excluding, the Redemption
Date; provided that if the Redemption Date falls after a Regular Record Date and on or
before an Interest Payment Date, then the interest will be payable to the Holders in whose names
the Securities are registered at the close of business on such Regular Record Date and such
interest shall not be payable as part of the Redemption Price. Securities or portions of
Securities called for redemption shall be convertible by the Holder until the close of business on
the Business Day prior to the Redemption Date.

6. NOTICE OF REDEMPTION

          Notice of redemption, as set forth in Section 3.3 of the Indenture, will be given in
accordance with Section 11.2 of the Indenture at least 30 days but not more than 60 days before the
Redemption Date to each Holder of Securities to be redeemed at its registered address. Securities
in denominations larger than $1,000 may be redeemed in part, but only in whole multiples of $1,000.
On and after the Redemption Date, subject to the deposit with the Paying Agent of funds sufficient
to pay the Redemption Price, interest shall cease to accrue on Securities or portions thereof
called for redemption.

7. PURCHASE OF SECURITIES AT OPTION OF HOLDER UPON A FUNDAMENTAL CHANGE

          At the option of the Holder and subject to the terms and conditions of the Indenture, the
Company shall become obligated to purchase all or any part specified by the Holder (so long as the
principal amount of such part is $1,000 or a multiple of $1,000 in excess thereof) of the
Securities held by such Holder on the date that is specified by the Company and is not less than 20
or more than 35 calendar days following the date of the Company Fundamental Change Notice, at a
Fundamental Change Purchase Price in cash equal to 100% of

A-6

 

the principal amount thereof together with any accrued interest up to, but excluding, the
Fundamental Change Purchase Date; provided, however, if the Fundamental Change
Purchase Date is an Interest Payment Date, then interest on the Securities shall be payable to the
Holders in whose name the Securities are registered at the close of business on the Regular Record
Date and such interest shall not be payable as part of the Fundamental Change Purchase Price. The
Holder shall have the right to withdraw any Fundamental Change Purchase Notice (in whole or in a
portion thereof that is $1,000 or a multiple of $1,000 in excess thereof) at any time prior to the
close of business on the Business Day immediately preceding the Fundamental Change Purchase Date by
delivering a written notice of withdrawal to the Paying Agent in accordance with the terms of the
Indenture.

8. PURCHASE OF SECURITIES AT OPTION OF HOLDER ON SPECIFIED DATES

          At the option of the Holder and subject to the terms and conditions of the Indenture, the
Company shall become obligated to purchase for cash all or any part specified by the Holder (so
long as the principal amount of such part is $1,000 or a multiple of $1,000 in excess thereof) of
the Securities held by such Holder on the applicable Put Right Purchase Date at the applicable Put
Right Purchase Price. The Holder shall have the right to withdraw any Put Right Purchase Notice
(in whole or in a portion thereof that is $1,000 or a multiple of $1,000 in excess thereof) at any
time prior to the close of business on the Put Right Purchase Date by delivering a written notice
of withdrawal to the Paying Agent in accordance with the terms of the Indenture.

9. CONVERSION

          Subject to and upon compliance with the provisions of the Indenture and upon the occurrence of
the events specified in the Indenture, a Holder may surrender for conversion any Security that is
$1,000 principal amount or multiples thereof. In lieu of receiving shares of the Company’s Common
Stock, a Holder will receive, for each $1,000 principal amount of Securities surrendered for
conversion:

	 	•	 	cash in an amount equal to the lesser of (1) $1,000 and (2) the Conversion Value, as
defined in the Indenture; and
	 
	 	•	 	if the Conversion Value is greater than $1,000, a number of shares of the Company’s
Common Stock, equal to the sum of the Daily Share Amounts, as defined in the Indenture, for
each of the 20 consecutive Trading Days in the Conversion Reference Period, as defined in
the Indenture, subject to the Company’s right to deliver cash in lieu of all or a portion
of such shares as described in the Indenture.

10. ADJUSTMENT TO CONVERSION RATE UPON CERTAIN FUNDAMENTAL CHANGES

          In the event of certain Fundamental Changes, as specified in the Indenture, the Company will
increase the Conversion Rate, as defined in the Indenture, as to Securities converted in connection
with the Fundamental Change or, in lieu thereof, the Company may elect to adjust the Conversion
Rate and the related

A-7

 

conversion obligation so that the Securities are convertible into shares of the acquiring or
surviving company, in each case as described in the Indenture.

11. DENOMINATIONS, TRANSFER, EXCHANGE

          The Securities are in registered form, without coupons, in denominations of $1,000 and
multiples of $1,000. A Holder may register the transfer of or exchange Securities in accordance
with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents and to pay any taxes or other governmental charges that may be
imposed in relation thereto by law or permitted by the Indenture.

12. PERSONS DEEMED OWNERS

          The Holder of a Security may be treated as the owner of it for all purposes.

13. UNCLAIMED MONEY

          If money for the payment of principal or interest or upon conversion, redemption or purchase
remains unclaimed for two years, the Trustee or Paying Agent will pay the money back to the Company
at its written request, subject to applicable unclaimed property law. After that, Holders entitled
to money must look to the Company for payment as general creditors unless an applicable abandoned
property law designates another person.

14. AMENDMENT, SUPPLEMENT AND WAIVER

          Subject to certain exceptions, the Indenture or the Securities may be amended or supplemented
with the consent of the Holders of at least a majority in aggregate principal amount of the
Securities then outstanding, and an existing default or Event of Default and its consequence or
compliance with any provision of the Indenture or the Securities may be waived in a particular
instance with the consent of the Holders of a majority in aggregate principal amount of the
Securities then outstanding. Without the consent of or notice to any Holder, the Company and the
Trustee may amend or supplement the Indenture or the Securities to, among other things, cure any
ambiguity, defect or inconsistency or make any other change that does not adversely affect the
rights of any Holder.

15. SUCCESSOR ENTITY

          When a successor Person assumes all the obligations of its predecessor under the Securities
and the Indenture in accordance with the terms and conditions of the Indenture, the predecessor
Person (except in certain circumstances specified in the Indenture) shall be released from those
obligations.

16. DEFAULTS AND REMEDIES

          Under the Indenture, an Event of Default includes:

A-8

 

               (1) the failure of the Company to pay when due the principal of, or premium, if any, on any of
the Securities at the Final Maturity Date, or upon a redemption or purchase pursuant to Article 3
of the Indenture;

               (2) the failure of the Company to pay an installment of interest (including Additional
Interest, if any) on any of the Securities that continues for 30 days after the date when due;

               (3) the failure of the Company to satisfy in full its conversion obligations following
conversion of any Securities pursuant to Article 4 of the Indenture within the time periods
contemplated by Section 4.2(a) of the Indenture;

               (4) the failure of the Company to comply with its obligations under Article 6 of the
Indenture;

               (5) the failure of the Company to perform or observe any other term, covenant or agreement
contained in the Securities or the Indenture for a period of 45 days after the Notice of Default
specified below is given;

               (6) the failure of the Company to timely provide a Company Fundamental Change Notice when
required by Section 3.7(d) of the Indenture;

               (7) the failure of the Company to make any payment at the end of the applicable grace period,
if any, after the maturity of any indebtedness for borrowed money with an aggregate principal
amount then outstanding in excess of $15,000,000, whether such indebtedness now exists or shall
hereafter be created, or there is an acceleration of indebtedness for borrowed money in an amount
in excess of $15,000,000 because of a default with respect to such indebtedness, and such
indebtedness, in either case, is not discharged, or such acceleration is not cured, waived,
rescinded or annulled, within a period of 30 days after there shall have been given a Notice of
Default, as defined below, requiring the Company to cause such indebtedness to be discharged or
cause such default to be cured or waived or such acceleration to be rescinded or annulled;

               (8) the Company or any Significant Subsidiary of the Company pursuant to or within the meaning
of any Bankruptcy Law: (A) commences a voluntary case or proceeding, (B) consents to the entry of
an order for relief against it in an involuntary case or proceeding, (C) consents to the
appointment of a Custodian of it or for all or substantially all of its property, (D) makes a
general assignment for the benefit of its creditors, (E) files a petition in bankruptcy or answer
or consent seeking reorganization or relief, or (F) consents to the filing of such a petition or
the appointment of or taking possession by a Custodian; or

               (9) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:
(A) is for relief against the Company or any Significant Subsidiary of the Company in an
involuntary case or proceeding or adjudicates the Company or any Significant Subsidiary of the
Company insolvent or bankrupt, (B) appoints a Custodian of the Company or any Significant
Subsidiary of the Company or for all or substantially all of the property of the Company or any
Significant Subsidiary of the Company, or (C) orders the winding up or liquidation of the Company
or any Significant Subsidiary of the Company;

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

A-9

 

          If an Event of Default (other than as a result of certain events of bankruptcy, insolvency or
reorganization of the Company or, in certain circumstances, the Company’s obligation to file or
furnish reports or other financial information pursuant to Section 314(a) of the TIA or as required
by Section 5.2 of the Indenture) occurs and is continuing, the Trustee or the Holders of at least
25% in aggregate principal amount of the Securities then outstanding may declare all unpaid
principal to the date of acceleration on the Securities then outstanding to be due and payable
immediately, all as and to the extent provided in the Indenture. Such declaration must be made via
written notice by registered or certified mail, to the Company by the Trustee, or to the Company
and the Trustee by the Holders of at least 25% in aggregate principal amount of the Securities then
outstanding, which notice must specify the default and state that the notice is a Notice of Default
(the “Notice of Default”). If an Event of Default occurs as a result of certain events of
bankruptcy, insolvency or reorganization of the Company, unpaid principal of the Securities then
outstanding shall become due and payable immediately without any declaration or other act on the
part of the Trustee or any Holder, all as and to the extent provided in the Indenture.
Notwithstanding the foregoing, if the Company breaches its obligation to file or furnish reports or
other financial information pursuant to Section 314(a) of the TIA or as required by Section 5.2 of
the Indenture, the Company may elect to pay Additional Interest on the Securities, which shall be
the Holders’ sole and exclusive remedy for any such breach, and the Holders shall not have any
immediate right under the Indenture to accelerate the maturity of the Securities as a result of any
such breach, in each case, from the date of such breach to, but not including, the 180th day
following such breach. The Company will pay such Additional Interest to all Holders at a rate per
annum equal to 0.25% of the principal amount of the Securities to but excluding the 90th
day following such breach (or such earlier date on which the Event of Default relating to the
reporting obligations referred to in this Section shall have been cured or waived) and at a rate
per annum equal to 0.50% per annum from the 90th day following such breach to, but not
including, the 180th day following such breach (or such earlier date on which the Event
of Default relating to the reporting obligations referred to in this Section shall have been cured
or waived). On such 180th day, such Additional Interest will cease to accrue (or earlier, if the
Event of Default relating to the reporting obligations referred to in this Section shall have been
cured or waived prior to such 180th day) and, if the Event of Default is continuing on such 180th
day, the Securities will be subject to acceleration as otherwise provided herein. Any Additional
Interest paid pursuant to this Section will be payable at the times and in the manner provided for
the payment of regular interest in the Securities.

          Holders may not enforce the Indenture or the Securities except as provided in the Indenture.
The Trustee may require indemnity satisfactory to it before it enforces the Indenture or the
Securities. Subject to certain limitations, Holders of a majority in aggregate principal amount of
the Securities then outstanding may direct the Trustee in its exercise of any trust or power. The
Trustee may withhold from Holders notice of any continuing default (except a default in payment of
principal or interest) if it determines that withholding notice is in their interests. The Company
is required to file periodic reports with the Trustee as to the absence of default.

17. TRUSTEE DEALINGS WITH THE COMPANY

          U.S. Bank National Association, the Trustee under the Indenture, in its individual or any
other capacity, may make loans to, accept deposits from and perform services for the Company or any
Affiliate of the Company, and may otherwise deal with the Company or any Affiliate of the Company,
as if it were not the Trustee.

A-10

 

18. NO RECOURSE AGAINST OTHERS

          A director, officer, employee or stockholder, as such, of the Company shall not have any
liability for any obligations of the Company under the Securities or the Indenture nor for any
claim based on, in respect of or by reason of such obligations or their creation. The Holder of
this Security by accepting this Security waives and releases all such liability. The waiver and
release are part of the consideration for the issuance of this Security.

19. AUTHENTICATION

          This Security shall not be valid until the Trustee or an authenticating agent manually signs
the certificate of authentication on the other side of this Security.

20. ABBREVIATIONS AND DEFINITIONS

          Customary abbreviations may be used in the name of the Holder or an assignee, such as: TEN COM
(= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian) and UGMA (= Uniform Gifts to Minors
Act).

          All terms defined in the Indenture and used in this Security but not specifically defined
herein are defined in the Indenture and are used herein as so defined.

21. INDENTURE TO CONTROL; GOVERNING LAW

          In the case of any conflict between the provisions of this Security and the Indenture, the
provisions of the Indenture shall control. This Security shall be governed by, and construed in
accordance with, the laws of the State of New York.

          The Company will furnish to any Holder, upon written request and without charge, a copy of the
Indenture. Requests may be made to: Sybase, Inc., One Sybase Drive, Dublin, California 94568,
(925) 236-5000, Attention: General Counsel.

A-11

 

ASSIGNMENT FORM

     To assign this Security, fill in the form below:

     I or we assign and transfer this Security to

     

 

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

 

 

 

 

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

and irrevocably appoint

 

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

	 	 	 	 	 
	 

	 	 	 	Your Signature:
	Date:
	 	 	 	 
	 

	 	 
	 	 
	 

	 	 	 	(Sign exactly as your name appears on the other side of this Security)
	 
	 	 	 	 
	*Signature guaranteed by: 
	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	

	 	 

	 	 

 

			
	*	 	The signature must be guaranteed by an institution which is a member of one of
the following recognized signature guaranty programs: (i) the Securities Transfer
Agent Medallion Program (STAMP); (ii) the New York Stock Exchange Medallion Program
(MSP); (iii) the Stock
Exchange Medallion Program (SEMP); or (iv) such other guaranty program acceptable to the
Trustee.

A-12

 

CONVERSION NOTICE

     To convert this Security, check the box: o

     To convert only part of this Security, state the principal amount to be converted (must be
$1,000 or a multiple of $1,000): $                    .

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

     

 

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

 

 

 

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

Please make payment of amounts due after conversion to:

	 	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 

	 	 
	Address:	 	 

 

Wire transfer instructions (if more than $2,000,000 of Securities are being converted and Holder
wishes to receive payment by wire transfer):

 

 

	 	 	 	 	 
	 

	 	 	 	Your Signature:
	Date:
	 	 	 	 
	 

	 	 
	 	 
	 

	 	 	 	(Sign exactly as your name appears on the
other side of this Security)
	 
	 	 	 	 
	*Signature guaranteed by:	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 

 

			
	*	 	The signature must be guaranteed by an institution which is a member of one of the following
recognized signature guaranty programs: (i) the Securities Transfer Agent Medallion Program
(STAMP); (ii) the New York Stock Exchange Medallion Program (MSP); (iii) the Stock Exchange
Medallion Program (SEMP); or (iv) such other guaranty program acceptable to the Trustee.

A-13

 

OPTION TO ELECT PURCHASE

UPON A FUNDAMENTAL CHANGE

To: Sybase, Inc.

     The undersigned registered owner of this Security hereby irrevocably acknowledges receipt of a
notice from Sybase, Inc. (the “Company”) as to the occurrence of a Fundamental Change with respect
to the Company and requests and instructs the Company to purchase the entire principal amount of
this Security, or the portion thereof (which is $1,000 or a multiple thereof) below designated, in
accordance with the terms of the Indenture referred to in this Security at the Fundamental Change
Purchase Price to the registered Holder hereof.

	 	 	 
	Dated:                     
	 	 
	 

	 	 
	 
	 

	 	 
	 

	 	Signature(s)
	 
	 	 
	 

	 	Signature(s) must be guaranteed by a
qualified guarantor institution with
membership in an approved signature
guarantee program pursuant to Rule 17
Ad-15 under the Securities Exchange Act of
1934.
	 
	 	 
	 
	 

	 	 
	 

	 	Signature Guaranty
	 
	 	 
	Principal amount to be redeemed
(in a multiple of $1,000, if less than all):
	 	 
	 
	 	 
	 	 
	 

NOTICE: The signature to the foregoing Election must correspond to the Name as written upon the
face of this Security in every particular, without alteration or any change whatsoever.

A-14

 

OPTION TO ELECT PURCHASE

ON SPECIFIED DATES

To: Sybase, Inc.

     The undersigned hereby requests and instructs Sybase, Inc. to purchase the entire
principal amount of this Security, or the portion thereof (which is $1,000 or a multiple thereof)
below designated, on                      in accordance with the terms of the Indenture referred to
in this Security at the Put Right Purchase Price to the registered Holder hereof.

	 	 	 
	Dated:                    
	 	 
	 

	 	 
	 

	 	Signature(s) must be guaranteed by a
qualified guarantor institution with
membership in an approved signature
guarantee program pursuant to Rule 17
Ad-15 under the Securities Exchange Act of
1934.
	 
	 	 
	 
	 

	 	 
	 

	 	Signature Guaranty
	 
	 	 
	Principal amount to be redeemed
(in a multiple of $1,000, if less than all):
	 	 
	 
	 	 
	 	 
	 

NOTICE: The signature to the foregoing Election must correspond to the Name as written upon the
face of this Security in every particular, without alteration or any change whatsoever.

A-15

 

SCHEDULE OF EXCHANGES OF SECURITIES3

     The following exchanges, purchase, redemptions, purchases or conversions of a part of this
global Security have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Principal Amount	 	 	 	 	 	 	 	 
	of this Global Note	 	Authorized	 	 	 	 	 	Amount of
	Following Such	 	Signatory of	 	Amount of Decrease in	 	Increase in
	Decrease Date	 	Securities	 	Principal Amount	 	Principal Amount
	of Exchange (or Increase)	 	Custodian	 	of this Global Note	 	of this Global Note

A-16

 

CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR REGISTRATION

OF TRANSFER OF RESTRICTED SECURITIES3

			
	Re:	 	3.50% Convertible Senior Notes due 2029 (the “Securities”) of Sybase, Inc.

     This certificate relates to $                     principal amount of Securities owned in (check applicable
box)

     o book-entry or      o definitive form by                      (the “Transferor”).

     The Transferor has requested a Registrar or the Trustee to exchange or register the
transfer of such Securities.

     In connection with such request and in respect of each such Security, the Transferor does
hereby certify that the Transferor is familiar with transfer restrictions relating to the
Securities as provided in Section 2.12 of the Indenture dated as of August 4, 2009 between Sybase,
Inc. and U.S. Bank National Association, as trustee (the “Indenture”), and the transfer of such
Security is being made pursuant to an effective registration statement under the Securities Act of
1933, as amended (the “Securities Act”) (check applicable box) or the transfer or exchange, as the
case may be, of such Security does not require registration under the Securities Act because (check
applicable box):

	 	o	 	Such Security is being transferred pursuant to an effective registration statement
under the Securities Act.
	 
	 	o	 	Such Security is being acquired for the Transferor’s own account, without transfer.
	 
	 	o	 	Such Security is being transferred to the Company or a Subsidiary (as defined in the
Indenture) of the Company.
	 
	 	o	 	Such Security is being transferred to a person the Transferor reasonably believes is
a “qualified institutional buyer” (as defined in Rule 144A or any successor provision
thereto (“Rule 144A”) under the Securities Act) that is purchasing for its own
account or for the account of a “qualified institutional buyer”, in each case to whom
notice has been given that the transfer is being made in reliance on such Rule 144A,
and in each case in reliance on Rule 144A.
	 
	 	o	 	Such Security is being transferred pursuant to and in compliance with an exemption
from the registration requirements under the Securities Act in accordance with Rule
144 (or any successor thereto) (“Rule 144”) under the Securities Act.
	 
	 	o	 	Such Security is being transferred pursuant to and in compliance with an exemption
from the registration requirements of the Securities Act (other than an exemption
referred to above) and as a result of which such Security will, upon such transfer,
cease to be a “restricted security” within the meaning of Rule 144 under the
Securities Act.

A-17

 

     The Transferor acknowledges and agrees that, if the transferee will hold any such Securities
in the form of beneficial interests in a global Note which is a “restricted security” within the
meaning of Rule 144 under the Securities Act, then such transfer can only be made pursuant to Rule
144A under the Securities Act and such transferee must be a “qualified institutional buyer” (as
defined in Rule 144A).

	 	 	 	 	 
	
	 	 	 	 
	Date: 	 	 	 
	 

	 	 	 	(Insert Name of Transferor)

A-18

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00161-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00161-of-00352.parquet"}]]