Document:

exv10w5

Exhibit 10.5

ABSOLUTE, UNCONDITIONAL GUARANTY

     This
ABSOLUTE, UNCONDITIONAL GUARANTY (“Guaranty”) is
executed effective as of the 20th
day of August, 2010, by PACIFIC SUNWEAR OF CALIFORNIA, INC., a California corporation (
“Guarantor”), for the benefit of AMERICAN NATIONAL INSURANCE COMPANY, a Texas insurance
company (“Noteholder”).

WITNESSETH:

     WHEREAS, Noteholder has made a loan of $13,000,000.00 (the “Loan”) to PACIFIC SUNWEAR
STORES CORP., a California corporation (“Maker”), on or about the same date hereof,
pursuant to which Maker has executed that certain Promissory Note of even date herewith in the
original principal amount of $13,000,000.00, made payable to the order of Noteholder (together with
any and all renewals, modifications, increases, extensions, consolidations and rearrangements,
thereof, the “Note”); and under the Note, Maker has become indebted, and may from time to
time be further indebted, to Noteholder with respect to the Loan, which is secured by the liens and
security interests of that certain Mortgage, Security Agreement, Financing Statement and Fixture
Filing (together with all renewals, modifications, increases, extensions, consolidations and
rearrangements, thereof, the “Mortgage”) of even date herewith, for the benefit of
Noteholder concerning that parcel of real property located in Johnson County, Kansas more
particularly described in Exhibit “A” attached hereto and made a part hereof for all purposes (the
“Mortgaged Property”), and further evidenced or secured by such other documents executed in
connection with or which relate to or secure the Loan (individually and collectively, together with
the Note and the Mortgage, the “Loan Documents”); and

     WHEREAS, Noteholder is not willing to make the Loan, or otherwise extend credit, to Maker
unless Guarantor unconditionally guarantees, jointly and severally, payment and performance to
Noteholder of the Guaranteed Debt (as herein defined) pursuant to the terms and conditions herein
provided; and

     WHEREAS, Guarantor is the owner of a direct or indirect interest in Maker, and Guarantor will
materially and directly benefit from Noteholder’s making of the Loan to Maker, and such Loan and
this Guaranty are in the best interests of Guarantor; and

     WHEREAS, Noteholder has made or agreed to make the Loan to Maker upon the inducement and
representation that Guarantor shall be jointly and severally liable for and personally guarantee
(a) the payment in full of the Guaranteed Debt and (b) the performance of any and all other
obligations of Maker under the Loan Documents.

     NOW, THEREFORE, as an inducement to Noteholder to enter in to the Loan Agreement and make the
Loan to Maker as described therein, and to extend such additional credit as Noteholder may from
time to time agree to extend, and for Ten and 00/100 Dollars ($10.00) and other good and valuable
consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties do
hereby agree as follows:

1

 

ARTICLE I

NATURE AND SCOPE OF GUARANTY

1.1 Guaranty of Obligations. Guarantor hereby irrevocably and unconditionally, and jointly
and severally, guarantees to Noteholder and its successors and assigns the payment and performance
of the Guaranteed Debt as and when the same shall be due and payable or performable, whether by
lapse of time, by acceleration of maturity or otherwise. Guarantor hereby irrevocably and
unconditionally covenants and agrees that it is liable for the Guaranteed Debt as a primary
obligor.

1.2 Definition of Guaranteed Debt. As used herein, the term “Guaranteed Debt”
shall mean any and all of the following:

     (a) any and all principal, interest, reasonable attorneys’ fees, commitment fees, liabilities
for costs and expenses and other indebtedness, obligations and liabilities of Maker to Noteholder
at any time created or arising in connection with the Note, or any amendment thereto or
substitution therefor, including, but not limited to, all indebtedness, obligations and liabilities
of Maker to Noteholder arising under any renewals, modifications, increases, extensions,
consolidations and rearrangements of the Note, or under the Loan Documents;

     (b) any and all indebtedness, liabilities, obligations and duties of Maker for future
advances, extensions of credit, sales on account or other value at any time given or made by
Noteholder to Maker arising under any of the Loan Documents, whether or not the advances,
extensions of credit, sales on account or other value are given pursuant to a loan commitment or
otherwise;

     (c) any and all other indebtedness, liabilities, obligations and duties of every kind and
character of Maker to Noteholder arising under any of the Loan Documents, whether now or hereafter
existing or arising, regardless of whether such present or future indebtedness, liabilities,
obligations or duties be direct or indirect, related or unrelated, liquidated or unliquidated,
primary or secondary, joint, several or joint and several or fixed or contingent; and

     (d) any and all post-petition interest, reasonable costs, expenses and fees, including, but
not limited to, court costs and reasonable attorneys’ fees, incurred by Noteholder in connection
with the collection of any or all amounts, indebtedness, obligations and liabilities of Maker to
Noteholder described in items (a) through (c) above.

1.3 Nature of Guaranty. This Guaranty is an irrevocable, absolute, unconditional
continuing guaranty of payment and performance and not a guaranty of collection. This Guaranty may
not be revoked by Guarantor and shall continue to be effective with respect to any Guaranteed Debt
arising or created after any attempted revocation by Guarantor and after (if Guarantor is a natural
person) Guarantor’s death (in which event this Guaranty shall be binding upon Guarantor’s estate
and Guarantor’s administrator’s, executors, legal representatives and heirs). The fact that at any
time or from time to time the Guaranteed Debt may be increased, reduced or paid in full shall not
release, discharge or reduce the obligation of Guarantor to Noteholder with respect to the
indebtedness or obligations of Maker thereafter incurred (or other Guaranteed Debt thereafter
arising) under the Note or otherwise for so long as the Note remains outstanding. This Guaranty may
be enforced by Noteholder and any subsequent holder of all or any portion of the Guaranteed Debt
and shall not be
discharged by the assignment or negotiation of all or part of the Guaranteed Debt.

2

 

1.4 Guaranteed Debt Not Reduced by Offset. The Guaranteed Debt and the liabilities and
obligations of Guarantor to Noteholder hereunder shall not be reduced, discharged or released
because or by reason of any existing or future offset, claim or defense of Maker, or any other
party, against Noteholder or against payment or performance of the Guaranteed Debt, whether such
offset, claim or defense arises in connection with the Guaranteed Debt (or the transactions
creating the Guaranteed Debt) or otherwise. Without limiting the foregoing or Guarantor’s
liability hereunder, to the extent that Noteholder advances funds or extends credit to Maker, and
does not receive payments, performances or benefits thereon in the amounts and at the times
required or provided by the Loan Documents or applicable laws, Guarantor is absolutely liable to
make such payments and performances to (and confer such benefits on) Noteholder, on a timely basis.

1.5 Payment by Guarantor. If all or any portion of the Guaranteed Debt shall not be
punctually paid or performed when due, whether at maturity or earlier by acceleration or otherwise,
Guarantor shall, immediately upon demand by Noteholder, and without presentment, protest, notice of
protest, notice of non-payment, notice of intention to accelerate the maturity, notice of
acceleration of the maturity or any other notice whatsoever, pay in lawful money of the United
States of America the amount due on the Guaranteed Debt to Noteholder at Noteholder’s address as
set forth herein and perform such other unperformed obligations as may be required pursuant to the
Loan Documents. Such demand(s) may be made at any time coincident with or after the time for
payment or performance of all or part of the Guaranteed Debt, and may be made from time to time
with respect to the same or different items of Guaranteed Debt. Such demand shall be deemed made,
given and received in accordance with the notice provisions hereof.

1.6 No Duty to Pursue Others. Except as may be required by applicable law, it shall not be
necessary for Noteholder (and Guarantor hereby waives any rights which Guarantor may have to
require Noteholder), in order to enforce such payment or performance by Guarantor, first to (i)
institute suit or exhaust its rights or remedies against Maker, the Mortgaged Property or others
liable on the Guaranteed Debt or any other person or entity; (ii) enforce or exhaust Noteholder’s
rights or remedies against any collateral or security which shall ever have been given to secure
the Guaranteed Debt; (iii) enforce Noteholder’s rights or remedies against any other guarantors of
the Guaranteed Debt; (iv) join Maker or any others liable on the Guaranteed Debt in any action
seeking to enforce this Guaranty; (v) exhaust any rights or remedies available to Noteholder
against any collateral or security which shall ever have been given to secure the Guaranteed Debt;
or (vi) resort to any other means of obtaining payment or performance of the Guaranteed Debt.

1.7 Guaranty Independent; Waivers.

     (a) Guarantor agrees that:

          (i) the obligations under this Guaranty are independent of and in addition to the undertakings
of Maker pursuant to the Loan Documents, any evidence of indebtedness issued in connection with the
Loan, any mortgage or security agreement given to secure the Loan, any other guaranties given in
connection with the Loan, and any other obligations of Guarantor to Noteholder;

3

 

          (ii) a separate action may be brought to enforce the provisions of this Guaranty, whether
Maker is a party in any action or not;

          (iii) Noteholder may at any time, or from time to time, in its sole discretion:

               (A) extend or change the time of payment or performance or the manner, place, or terms of
payment or performance of any of the Guaranteed Debt;

               (B) exchange, release, or surrender any of the Mortgaged Property, or any part of it, by
whomever deposited, which is now or may later be held by Noteholder in connection with any of the
Guaranteed Debt;

               (C) sell or purchase any of the collateral at public or private sale, or at any broker’s
board, in the manner permitted by law, and after all costs and expenses of every kind for
collection, sale, or delivery, the net proceeds of any sale may be applied by Noteholder on any of
the Guaranteed Debt; and

               (D) settle or compromise with Maker, or any other person liable, any of the Guaranteed Debt,
or subordinate the payment of it, or any part of it, to the payment of any other debts or claims,
that may at any time be due or owing to Noteholder or any other person or corporation; and

          (iv) Noteholder will be under no obligation to marshal any assets in favor of Guarantor or in
payment of any of the Guaranteed Debt.

     (b) Guarantor waives:

          (i) presentment, demand, protest, notice of acceptance, notice of dishonor, notice of
nonperformance, and any other notice with respect to any of the Guaranteed Debt and this Guaranty,
and promptness in commencing suit against any party, or in giving any notice to or making any claim
or demand on any other guarantor;

          (ii) any right to require Noteholder to proceed against Maker, proceed against or exhaust any
security held from Maker or pursue any remedy in Noteholder’s power;

          (iii) any defense based on any legal disability or other defense of Maker, any other
guarantor, or other person or by reason of the cessation or limitation of the liability of Maker
from any cause other than full payment of all sums payable under the Note and the performance of
the other Guaranteed Debt;

          (iv) any defense based on any lack of authority of the officers, directors, partners, or
agents purporting to act on behalf of Maker or any principal of Maker or any defect in the
formation of Maker or any principal of Maker;

          (v) to the fullest extent permitted by law, all rights and benefits granted to a guarantor
purporting to reduce a guarantor’s obligations in proportion to the principal obligation;

4

 

          (vi) any defense based on the application by Maker of the proceeds of the Loan for purposes
other than the purposes represented by Maker to Noteholder or intended or understood by Noteholder
or Guarantor;

          (vii) any defense Guarantor may acquire by reason of Noteholder’s election of any remedy
against Guarantor or Maker or both, even though that election of remedies has destroyed any rights
of subrogation and/or reimbursement Guarantor may have against Maker by law or otherwise;

          (viii) any defense based on Noteholder’s failure to disclose to Guarantor any information
concerning Maker’s financial condition or any other circumstances bearing on Maker’s ability to pay
all sums payable under the Note or any of the other Guaranteed Debt;

          (ix) any defense based on any statute or rule of law that provides that the obligation of a
surety must be neither larger in amount nor in any other respects more burdensome than that of a
principal;

          (x) any defense based on Noteholder’s election, in any proceeding instituted under the Federal
Bankruptcy Code, of the application of Section 1111(b)(2) of the Federal Bankruptcy Code or any
successor statute;

          (xi) any defense based on any borrowing or any grant of a security interest under Section 364
of the Federal Bankruptcy Code; and

          (xii) until the Guaranteed Debt has been satisfied in full, any right of subrogation,
contribution or reimbursement against Maker, any right to enforce any remedy that Noteholder has or
may in the future have against Maker, any other right that Noteholder may now or later acquire
against Maker that arises from the existence or performance of Guarantor’s obligations under this
Guaranty or would arise with respect to the Guaranteed Debt, and any benefit of, and any right to
participate in, any security for the Guaranteed Debt now or in the future held by Noteholder.

1.8 Payment of Expenses. In the event that Guarantor should breach or fail to timely pay
or perform any provisions of this Guaranty, Guarantor shall, immediately upon demand by Noteholder,
pay Noteholder any and all costs and reasonable expenses (including, without limitation, court
costs and reasonable attorneys’ fees) incurred by Noteholder in the enforcement hereof or the
preservation of Noteholder’s rights hereunder. The covenant contained in this Section 1.8
shall survive until the payment and performance of the Guaranteed Debt and all costs and fees,
including, without limitation, court costs and reasonable attorneys’ fees incurred by Noteholder
with respect to Maker and/or Guarantor are paid in full.

1.9 Effect of Bankruptcy. In the event that, pursuant to any insolvency, bankruptcy,
reorganization, receivership or other debtor relief law, or any judgment, order or decision
thereunder, Noteholder must rescind or restore any payment, or any part thereof, received by
Noteholder in satisfaction of the Guaranteed Debt, as set forth herein, any prior release or
discharge from the terms of this Guaranty given to Guarantor by Noteholder shall be without effect,
and this Guaranty shall remain in full force and effect. It is the intention of Maker and Guarantor
that

5

 

Guarantor’s obligations hereunder shall not be discharged except by Guarantor’s full performance of
such obligations and then only to the extent of such performance.

1.10 Waiver of Subrogation, Reimbursement and Contribution. Notwithstanding anything to
the contrary contained in this Guaranty, so long as any portion of the Guaranteed Debt remains
unpaid, Guarantor hereby unconditionally and irrevocably agrees that any and all rights and
remedies it may now or hereafter have under any agreement, at law or in equity (including, without
limitation, any law subrogating Guarantor to the rights of Noteholder) to assert any claim against
or seek contribution, indemnification or any other form of reimbursement from Maker or any other
party liable for any payment or performance of any or all of the Guaranteed Debt shall at all times
be and remain subordinate in all respects to the Guaranteed Debt.

1.11 Maker. The term “Maker” as used herein shall include any new or successor
corporation, association, partnership (general or limited), joint venture, trust or other
individual or organization formed as a result of any merger, reorganization, sale, transfer,
devise, gift or bequest of Maker or any interest in Maker.

1.12 Intentionally Omitted.

1.13 Recourse Limitations Do Not Apply. It is understood and agreed that any limitations
of liability provided in the Note and any of the other Loan Documents shall not apply with respect
to Guarantor, and that, notwithstanding anything to the contrary in the Note or any of the other
Loan Documents, Noteholder shall have full and personal recourse against the assets of Guarantor
with respect to the satisfaction of the Guaranteed Debt, and such limitations of liability shall
not apply for purposes of enforcing this Guaranty.

ARTICLE II

EVENTS AND CIRCUMSTANCES NOT REDUCING

OR DISCHARGING GUARANTOR’S OBLIGATIONS

     Guarantor hereby consents and agrees to each of the following, and agrees that Guarantor’s
obligations under this Guaranty shall not be released, diminished, impaired, reduced or adversely
affected by any of the following, and waives any common law, equitable, statutory or other rights
(including, without limitation, rights to notice), which Guarantor might otherwise have as a result
of or in connection with any of the following:

2.1 Modifications. Any renewal, extension, increase, modification, consolidation,
alteration or rearrangement of all or any part of the Guaranteed Debt, the Note, the other Loan
Documents or any other document, contract or understanding between Maker and Noteholder, or any
other parties, pertaining to the Guaranteed Debt or any failure of Noteholder to notify Guarantor
of any such action.

2.2 Adjustment. Any adjustment, indulgence, forbearance or compromise that might be
granted or given by Noteholder to Maker or any guarantor.

6

 

2.3 Condition of Maker or Guarantor. The insolvency, bankruptcy, arrangement, adjustment,
composition, liquidation, disability, dissolution or lack of power of Maker, Guarantor or any other
party at any time liable for the payment or performance of all or part of the Guaranteed Debt; or
any dissolution of Maker or Guarantor, or any sale, lease or transfer of any or all of the assets
of Maker or Guarantor, or any changes in the shareholders, partners, trustees, beneficiaries or
members of Maker or Guarantor; or any reorganization of Maker or Guarantor.

2.4 Invalidity of Guaranteed Debt. The assertion of or any finding of the invalidity,
illegality or unenforceability of all or any part of the Guaranteed Debt, or any document or
agreement executed in connection with the Guaranteed Debt, for any reason whatsoever, including,
without limitation, the fact that (i) the Guaranteed Debt, or any part thereof, exceeds the amount
permitted by law or in equity; (ii) the act of creating the Guaranteed Debt or any part thereof is
ultra vires; (iii) the officers or representatives executing the Note or the other Loan Documents
or otherwise creating the Guaranteed Debt acted in excess of their authority; (iv) the Guaranteed
Debt violates applicable usury laws; (v) Maker has valid defenses, claims or offsets (whether at
law, in equity or by agreement), which render the Guaranteed Debt wholly or partially uncollectible
from Maker; (vi) the creation, performance or repayment of the Guaranteed Debt (or the execution,
delivery and performance of any document representing part of the Guaranteed Debt or executed in
connection with the Guaranteed Debt, or given to secure the repayment of the Guaranteed Debt) is
uncollectible or unenforceable; or (vii) the Note or any of the other Loan Documents have been
forged or otherwise are irregular or not genuine or authentic, Guarantor shall remain fully liable
hereon regardless of whether Maker or any other person be found not liable on the Guaranteed Debt
or any part thereof for any reason.

2.5 Release of Obligor. Any full or partial release of the liability of Maker on the
Guaranteed Debt, or any part thereof, or of any guarantor, co-guarantors or any other person or
entity now or hereafter liable, whether directly or indirectly, jointly, severally, or jointly and
severally, to pay, perform, guarantee or assure the payment or performance of the Guaranteed Debt,
or any part thereof, it being recognized, acknowledged and agreed by Guarantor that Guarantor may
be required to pay and perform the Guaranteed Debt in full without assistance or support of any
other party, and Guarantor has not been induced to enter into this Guaranty on the basis of a
contemplation, belief, understanding or agreement that other parties will be liable to pay or
perform the Guaranteed Debt, or that Noteholder will look to other parties to pay or perform the
Guaranteed Debt.

2.6 Other Collateral. The taking or accepting of any other security, collateral or
guaranty or other assurance of payment or performance, for all or any part of the Guaranteed Debt.

2.7 Release of Collateral. Any release, surrender, exchange, subordination, deterioration,
waste, loss or impairment (including, without limitation, negligent, willful, unreasonable or
unjustifiable impairment) by Maker of any collateral or security, at any time existing in
connection with, or assuring or securing payment or performance of all, or any part of the
Guaranteed Debt.

2.8 Care and Diligence. The failure of Noteholder or any other party to exercise diligence
in the enforcement or sale of all or any part of such collateral, property or security, including,
but not limited to, any neglect, delay, omission, failure or refusal of Noteholder to (i) take or
prosecute any action for the collection of any of the Guaranteed Debt; (ii) foreclose or initiate
any action to foreclose or once commenced, prosecute to completion any action to foreclose upon any
collateral or

7

 

security therefor; or (iii) take or prosecute any action in connection with any document or
agreement evidencing, securing or relating to all or any part of the Guaranteed Debt.

2.9 Unenforceability. The fact that any collateral, security, security interest or lien
contemplated or intended to be given, created or granted as security for the repayment of the
Guaranteed Debt, or any part thereof, shall not be properly perfected or created, or shall prove to
be unenforceable or subordinate to any other security interest or lien, it being recognized and
agreed by Guarantor that Guarantor is not entering into this Guaranty in reliance on, or in
contemplation of the benefits of the validity, enforceability, collectability or value of any of
the collateral or security for the Guaranteed Debt.

2.10 Offset. The Note, the Guaranteed Debt and the liabilities and obligations of
Guarantor to Noteholder hereunder, shall not be reduced, discharged or released because of or by
reason of any existing or future right of offset, claim or defense of Maker against Noteholder, or
any other party, or against the payment or performance of the Guaranteed Debt, whether such right
of offset, claim or defense arises in connection with the Guaranteed Debt (or the transactions
creating the Guaranteed Debt) or otherwise.

2.11 Merger. The reorganization, merger or consolidation of Maker into or with any other
corporation or entity.

2.12 Preference. Any payment by Maker to Noteholder is held to constitute a preference
under bankruptcy laws, or for any reason Noteholder is required to refund such payment or pay such
amount to Maker or someone else.

2.13 Other Actions Taken or Omitted. Any other action taken or omitted to be taken by
Maker with respect to any of the Loan Documents, the Guaranteed Debt or the security and collateral
therefor, whether or not such action or omission prejudices Guarantor or increases the likelihood
that Guarantor will be required to pay or perform the Guaranteed Debt pursuant to the terms hereof,
it being the unambiguous and unequivocal intention of Guarantor and Noteholder that Guarantor shall
be obligated to pay and perform the Guaranteed Debt when due, notwithstanding any occurrence,
circumstance, event, action or omission whatsoever, whether contemplated or uncontemplated, and
whether or not otherwise or particularly described herein, which obligation shall be deemed
satisfied only upon the full and final payment and performance and satisfaction of the Guaranteed
Debt.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

     To induce Noteholder to enter into the Loan Documents and extend credit to Maker, Guarantor
represents and warrants to Noteholder as follows:

3.1 Benefit. Guarantor is a related party to Maker and is the owner of a direct or
indirect interest in Maker, and has received, or will receive, direct or indirect material benefit
from the making of this Guaranty with respect to the Guaranteed Debt.

8

 

3.2 Familiarity and Reliance. Guarantor is familiar with, and has independently reviewed
the books and records regarding the financial condition of Maker and is familiar with the value of
any and all collateral or security intended to be given as security for the payment of the Note or
the Guaranteed Debt; provided, however, that Guarantor is not relying on such financial condition
or the collateral or security as an inducement to enter into this Guaranty.

3.3 No Representation by Noteholder. Neither Noteholder nor any other party has made any
representation, warranty or statement to Guarantor, express or implied, in order to induce
Guarantor to execute this Guaranty.

3.4 Legality. The execution, delivery and performance by Guarantor of this Guaranty and
the consummation of the transactions contemplated hereunder do not, and will not, contravene or
conflict with any law, statute or regulation whatsoever to which Guarantor is subject, or
constitute a default (or an event with which notice or the lapse of time or both would constitute a
default) under, or result in the breach of, any indenture, mortgage, deed of trust, charge, lien or
any contract, agreement or other document to which Guarantor is a party or which may be applicable
to Guarantor. This Guaranty is a legal and binding obligation of Guarantor and is enforceable in
accordance with its terms, except as limited by bankruptcy, insolvency or other laws of general
application relating to the enforcement of creditors’ rights.

3.5 Financial Information. All of the financial information provided by Guarantor to
Noteholder is true and correct in all material respects. Guarantor shall furnish to Noteholder
annual financial statements of Guarantor certified by such Guarantor as true and correct prepared
in accordance with generally accepted accounting principles consistently applied. Each such annual
financial statement shall be delivered to Noteholder within one hundred twenty (120) days after the
end of Guarantor’s fiscal year.

3.6 Survival. Any and all representations and warranties made by Guarantor herein shall
survive the execution hereof until the Guaranteed Debt has been satisfied.

ARTICLE IV

SUBORDINATION OF CERTAIN INDEBTEDNESS

4.1 Subordination of All Guarantor Claims. As used herein, the term “Guarantor
Claims” shall mean any and all debts and liabilities of Maker to Guarantor, whether such debts
and liabilities now exist or are hereafter incurred or arise, or whether the obligations of Maker
thereon be direct, contingent, primary, secondary, joint, several, joint and several or otherwise,
and irrespective of whether such debts or liabilities be evidenced by note, contract, open account
or otherwise, and irrespective of the person or persons in whose favor such debts or liabilities
may, at their inception, have been or may hereafter be created, or the manner in which they have
been or may hereafter be acquired by Guarantor. Guarantor Claims shall include, without
limitation, any and all rights and claims of Guarantor against Maker (arising as a result of
subrogation or otherwise) as a result of Guarantor’s payment or performance of all or a portion of
the Guaranteed Debt. Upon the occurrence of an Event of Default (as defined in the Loan
Documents), Guarantor shall not receive or collect, directly or indirectly, from Maker or any other
party any amount upon the Guarantor
Claims.

9

 

4.2 Claims in Bankruptcy. In the event of receivership, bankruptcy, reorganization,
arrangement, debtor’s relief, or other insolvency proceedings involving Guarantor as debtor,
Noteholder shall have the right to prove its claim in any such proceeding so as to establish its
rights hereunder and receive directly from the receiver, trustee or other court custodian dividends
and payments which would otherwise be payable upon Guarantor Claims. Guarantor hereby assigns such
dividends and payments to Noteholder. Should Noteholder receive, for application upon the
Guaranteed Debt, any such dividend or payment which is otherwise payable to Guarantor, and which,
as between Maker and Guarantor, shall constitute a credit upon Guarantor Claims, then upon payment
or performance to Noteholder in full of the Guaranteed Debt, Guarantor shall become subrogated to
the rights of Noteholder to the extent that such payment or performances to Noteholder on the
Guarantor Claims have contributed toward the liquidation of the Guaranteed Debt, and such
subrogation shall be with respect to that proportion of the Guaranteed Debt, which would have been
unpaid if Noteholder had not received dividends or payments upon the Guarantor Claims.

4.3 Payments Held in Trust. Notwithstanding anything to the contrary in this Guaranty, in
the event that Guarantor should receive any funds, payments, claims or distributions which would be
prohibited by this Guaranty, Guarantor agrees to hold in trust for Noteholder an amount equal to
the amount of all such funds, payments, claims or distributions so received, and agrees that
Guarantor shall have absolutely no dominion over the amount of such funds, payments, claims or
distributions so received except to pay them promptly to Noteholder, and Guarantor covenants
promptly to pay the same to Noteholder.

4.4 Liens Subordinate. Guarantor agrees that any liens, security interests, judgment
liens, charges or other encumbrances upon Maker’s assets securing payment of Guarantor Claims shall
be and remain inferior and subordinate to any liens, security interests, judgment liens, charges or
other encumbrances upon Maker’s assets securing payment or performance of the Guaranteed Debt (the
“Collateral”), regardless of whether such encumbrances in favor of Guarantor or Noteholder
presently exist or are hereafter created or attach. Without the prior written consent of
Noteholder, Guarantor shall not (i) exercise or enforce any creditor’s right it may have against
Maker, or (ii) foreclose, repossess, sequester or otherwise take steps or institute any action or
proceedings (judicial or otherwise, including, without limitation, the commencement of, or joinder
in, any liquidation, bankruptcy, rearrangement, debtor’s relief or insolvency proceeding) to
enforce any liens, mortgages, deeds of trust, security interests, collateral rights, judgments or
other encumbrances on any Collateral.

4.5 Default. The occurrence of any of the following events shall, at the election of
Noteholder, be deemed a default by such Guarantor (“Event of Default”) under this Guaranty:

     (a) if Guarantor fails to pay any of the Guaranteed Debt when due and payable or properly
declared due and payable and Guarantor shall fail to remedy such failure within ten (10) days after
written notice of such failure (which cure period may run concurrently with any cure period
afforded to Maker);

10

 

     (b) if Guarantor fails or neglects to perform, keep or observe any term, provision, condition,
covenant, warranty or representation contained in this Guaranty, which is required to be performed,
kept or observed by Guarantor and Guarantor shall fail to remedy such within thirty (30) days of
the date such term, provision, condition, covenant, warranty or representation is required to be
performed and Guarantor’s receipt of written notice of such failure (which cure period may run
concurrently with any cure period afforded to Maker);

     (c) if any of Guarantor’s assets are attached, seized, subjected to a writ of distress
warrant, are levied upon, come under a federal tax lien or come within the possession of any
receiver, conservator, trustee, custodian or assignee for the benefit of creditors;

     (d) if a petition under Title 11, United States Code (the “Bankruptcy Code”) or any
similar law or regulation shall be filed by Guarantor (which is not discharged within 120 days of
the date of filing), or if Guarantor shall make any assignment for the benefit of its creditors or
if any case or proceeding is filed by Guarantor for its dissolution or liquidation;

     (e) if a petition under the Bankruptcy Code or any similar law or regulation shall be filed
against Guarantor, or if such a case or proceeding is filed against Guarantor and such proceeding
shall not be dismissed within one hundred twenty (120) days of its filing, during which time
Guarantor shall be diligently contesting such action or proceeding;

     (f) if any material statement, report or certificate made or delivered to Noteholder by such
Guarantor is not true and correct in any material respect;

     (g) the occurrence of a default or Event of Default under any other agreement, instrument
and/or document executed and delivered by such Guarantor to Noteholder, which is not cured by
Guarantor within any applicable cure period set forth in any such agreement, instrument and/or
document;

     (h) the occurrence of a default or Event of Default under any the Note, Deed of Trust or any
other Loan Document;

     (i) if such Guarantor attempts to cancel, revoke or disclaim this Guaranty; or

     (j) the failure by such Guarantor to timely provide the financial information required
pursuant to Section 3.5 of this Agreement.

4.6 Remedies. Upon the occurrence of an Event of Default, which is not cured within any
applicable cure period, without notice thereof to such Guarantor, the Guaranteed Debt shall be due
and payable and enforceable against Guarantor, forthwith, at Noteholder’s principal place of
business, to the extent the Guaranteed Debt is then due and payable (whether by acceleration or
otherwise), and Noteholder may, in its sole and absolute discretion, exercise any one or more of
the following remedies which are cumulative and non-exclusive:

     (a) proceed to suit against Guarantor if the Guaranteed Debt is not immediately paid by
Guarantor to Noteholder at Noteholder’s principal place of business. At Noteholder’s election, one

11

 

or more successive or concurrent suits may be brought hereunder by Noteholder against such
Guarantor, whether suit has been commenced against Maker, and in any such suit Maker may be joined
(but need not be joined) as a party with Guarantor;

     (b) reduce to cash or the like any of such Guarantor’s assets of any kind or nature in the
possession, control or custody of Noteholder, and, without notice to such Guarantor, apply such
proceeds in reduction or payment of such Guaranteed Debt; and/or

     (c) exercise any one or more of the rights and remedies available at law or in equity.

     Guarantor recognizes that in the event of an Event of Default under this Guaranty, no remedy
at law will provide adequate relief to Noteholder, and agrees that Noteholder shall be entitled to
temporary and permanent injunctive relief in any such case without the necessity of proving actual
damage.

ARTICLE V

MISCELLANEOUS

5.1 Waiver. No failure to exercise, and no delay in exercising, on the part of Noteholder,
any right or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise of any other right
or remedy. The rights and remedies of Noteholder hereunder shall be in addition to all other
rights and remedies provided by law or in equity. No modification or waiver of any provision of
this Guaranty, nor consent to departure therefrom, shall be effective unless in writing and no such
consent or waiver shall extend beyond the particular case and purpose involved. No notice or
demand given in any case shall constitute a waiver of the right to take any other action in the
same, similar or other instances without such notice or demand. To the maximum extent permitted by
law, Guarantor specifically waives any and all rights and remedies to which Guarantor may become
entitled under applicable Kansas statutes, and to any and all other defenses available to sureties
or guarantors at law or in equity.

5.2 Notices. Any and all notices or other communications required or permitted to be given
pursuant hereto shall be in writing and shall be deemed properly given if (i) mailed by first class
United States mail, postage prepaid, registered or certified with return receipt requested; (ii) by
delivering same in person to the intended addressee; (iii) by delivery to an independent third
party commercial delivery service for same day or next day delivery and providing for evidence of
receipt at the office of the intended addressee; or (iv) by or by facsimile transmission, with
executed copy forwarded by one of the other alternatives for notice as herein provided. Notice so
mailed shall be effective three (3) days after deposit with the United States Postal Service or any
successor thereto; notice sent by a commercial delivery service shall be effective upon delivery to
such commercial delivery service; notice given by personal delivery shall be effective only if and
when received by the addressee; and notice given by other means shall be effective only if and when
received at the designated address of the intended addressee. Either party shall have the right to
change its address for notice hereunder to any other location within the continental United States
by the giving of thirty (30) days notice to the other party in the manner set forth herein. For
purposes of such notices, the addresses of the parties shall be as follows:

12

 

	 	 	 

	Noteholder:

	 	American National Insurance Company

One Moody Plaza

Galveston, Texas 77550

Attn: Mortgage and Real Estate Investments Department

Fax: (281) 538-4824
	 
	 	 
	Guarantor:

	 	Pacific Sunwear of California, Inc.

Attn: Craig E. Gosselin

SVP and General Counsel

3450 East Miraloma Avenue

Anaheim, California 92806

Fax: (714) 414-4251
	 
	 	 
	with a copy to:

	 	Sonnenschein Nath & Rosenthal LLP

Attention: John L. Snyder, Esq.

4520 Main Street, Suite 1100

Kansas City, MO 64111

Fax: (816) 531-7545

5.3 GOVERNING LAW. THIS GUARANTY IS EXECUTED AND DELIVERED AS AN INCIDENT TO A LENDING
TRANSACTION NEGOTIATED, CONSUMMATED AND PERFORMABLE IN JOHNSON COUNTY, KANSAS, AND SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF KANSAS. ANY ACTION OR
PROCEEDING AGAINST GUARANTOR UNDER OR IN CONNECTION WITH THIS GUARANTY MAY BE BROUGHT IN ANY STATE
OR FEDERAL COURT IN JOHNSON COUNTY, KANSAS. TO THE MAXIMUM EXTENT PERMITTED BY LAW, GUARANTOR
HEREBY IRREVOCABLY (I) SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF SUCH COURTS, AND (II) WAIVES ANY
OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING BROUGHT IN
SUCH COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM. GUARANTOR AGREES THAT SERVICE OF PROCESS
UPON IT MAY BE MADE BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, AT ITS ADDRESS
SPECIFIED HEREIN. NOTHING HEREIN SHALL AFFECT THE RIGHT OF NOTEHOLDER TO SERVE PROCESS IN ANY
OTHER MATTER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT OF NOTEHOLDER TO BRING ANY ACTION OR
PROCEEDING AGAINST GUARANTOR OR WITH RESPECT TO ANY OF GUARANTOR’S PROPERTY IN COURTS IN OTHER
JURISDICTIONS. TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NOTEHOLDER’S SOLE AND ABSOLUTE
DISCRETION, ANY ACTION OR PROCEEDING BY GUARANTOR AGAINST NOTEHOLDER SHALL BE BROUGHT ONLY IN A
COURT LOCATED IN JOHNSON COUNTY, KANSAS.

5.4 Invalid Provisions. If any provision of this Guaranty is held to be illegal, invalid,
or unenforceable under present or future laws effective during the term of this Guaranty, such
provision shall be fully severable, and this Guaranty shall be construed and enforced as if such
illegal, invalid or unenforceable provision had never comprised a part of this Guaranty, and the
remaining

13

 

provisions of this Guaranty shall remain in full force and effect and shall not be affected by the
illegal, invalid or unenforceable provision or by such provision’s severance from this Guaranty,
unless such continued effectiveness of this Guaranty, as modified, would be contrary to the basic
understandings and intentions of the parties as expressed herein.

5.5 Amendments. This Guaranty may be amended only by a document in writing executed by the
party or an authorized representative of the party against whom such amendment is sought to be
enforced.

5.6 Parties Bound: Assignment. This Guaranty shall be binding upon and inure to the
benefit of the parties hereto and their respective successors, assigns and legal representatives;
provided, however, that Guarantor may not, without the prior written consent of Noteholder, in
Noteholder’s sole and absolute discretion, assign any of its rights, powers, duties or obligations
hereunder. Notwithstanding the foregoing, nothing contained herein shall limit in any manner the
rights provided to Guarantor pertaining to the sale or transfer of its assets or its merger,
consolidation or other acquisition as provided for in Section 2.09 of the Mortgage. Without
limiting the generality of the foregoing, all provisions in this Guaranty shall inure to the
benefit of any participating lender with Noteholder.

5.7 Headings. Section headings are for convenience of reference only and shall in no way
affect the interpretation of this Guaranty.

5.8 Recitals. The recitals and introductory paragraphs hereof are a part hereof, form a
basis for this Guaranty and shall be considered prima facie evidence of the facts
and documents referred to therein.

5.9 Counterparts. To facilitate execution, this Guaranty may be executed in as many
counterparts as may be convenient or required. It shall not be necessary that the signature or
acknowledgment of, or on behalf of, each party, or that the signature of all persons required to
bind any party, or the acknowledgment of such party, appear on each counterpart. All counterparts
shall collectively constitute a single document. It shall not be necessary in making proof of this
Guaranty to produce or account for more than a single counterpart containing the respective
signature of, or on behalf of, and the respective acknowledgments of, each of the parties hereto.
Any signature or acknowledgment page to any counterpart may be detached from such counterpart
without impairing the legal effect of the signatures or acknowledgments thereon and thereafter
attached to another counterpart identical thereto except having attached to it additional signature
or acknowledgment pages.

5.10 Rights and Remedies. If Guarantor becomes liable for any indebtedness owing by Maker
to Noteholder, by endorsement or otherwise, other than under this Guaranty, such liability shall
not be in any manner impaired or affected hereby and the rights and remedies of Noteholder
hereunder shall be cumulative of any and all other rights and remedies that Noteholder may ever
have against Guarantor. The exercise by Noteholder of any right or remedy hereunder or under any
other Loan Document, or at law or in equity, shall not preclude the concurrent or subsequent
exercise of any other right or remedy.

14

 

5.11 ENTIRETY. THIS GUARANTY EMBODIES THE FINAL, ENTIRE AGREEMENT OF GUARANTOR AND
NOTEHOLDER WITH RESPECT TO GUARANTOR’S GUARANTY OF THE GUARANTEED DEBT AND SUPERSEDES ANY AND ALL
PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL,
RELATING TO THE SUBJECT MATTER HEREOF. THIS GUARANTY IS INTENDED BY GUARANTOR AND NOTEHOLDER AS A
FINAL AND COMPLETE EXPRESSION OF THE TERMS OF THE GUARANTY, AND NO COURSE OF DEALING BETWEEN
GUARANTOR AND NOTEHOLDER, NO COURSE OF PERFORMANCE, NO TRADE PRACTICES AND NO EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OR OTHER EXTRINSIC EVIDENCE OF ANY
NATURE SHALL BE USED TO CONTRADICT, VARY, SUPPLEMENT OR MODIFY ANY TERM OF THIS GUARANTY. THERE ARE
NO ORAL AGREEMENTS BETWEEN GUARANTOR AND NOTEHOLDER REGARDING THE SUBJECT MATTER HEREIN.

5.12 WAIVER OF RIGHT TO TRIAL BY JURY. TO THE MAXIMUM EXTENT PERMITTED BY LAW, GUARANTOR
HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,
SUIT, PROCEEDING OR COUNTERCLAIM THAT RELATES TO OR ARISES OUT OF ANY OF THIS GUARANTY OR ANY OF
THE OTHER LOAN DOCUMENTS OR THE ACTS OR FAILURE TO ACT OF OR BY NOTEHOLDER IN THE ENFORCEMENT OF
ANY OF THE TERMS OR PROVISIONS OF THIS GUARANTY OR THE OTHER LOAN DOCUMENTS.

5.13 Time. Time is of the essence of this Guaranty.

5.14 Number and Gender. All references to the singular shall include the plural and vice
versa and all references to any gender shall include the others, wherever appropriate.

5.15 Definition. Any capitalized term used herein, unless otherwise defined, shall have
the same meaning as provided in the Mortgage.

[THE REMAINDER OF THIS PAGE INTENTIONALLY RESERVED]

15

 

ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT
OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT ENFORCEABLE. TO PROTECT YOU
(MAKER/BORROWER(S)) AND US (NOTEHOLDER/CREDITOR) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY
AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH THE COMPLETE AND
EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY
IT.

 

.
 

THE PARTIES AGREE AND DO HEREBY AFFIRM THAT NO UNWRITTEN ORAL AGREEMENT BETWEEN THE PARTIES EXIST.

INITIAL HERE: (NOTEHOLDER) ___(MAKER/BORROWER) ___(GUARANTOR) ___.

     EXECUTED as of the day and year first above written.

	 	 	 	 	 
	 	GUARANTOR:

PACIFIC SUNWEAR OF CALIFORNIA, INC.,

a California corporation

 	 
	 	By:  	
 /s/ Craig E. Gosselin	 
	 	 	Name:  	 Craig E. Gosselin	 
	 	 	Title:  	 SVP and General Counsel	 

16

 

	 	 	 	 	 

	STATE OF CALIFORNIA

	)	 	 	 
	 

	)	 	 	 
	COUNTY OF                                                                 

	)	 	 	 

     On                      , 2010, before me,                                      
                       , Notary Public, personally
appeared                                         , who proved to me on the basis of satisfactory evidence to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.

     I swear under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.

     WITNESS my hand and official seal.

Signature                                                              
                                          [SEAL]

17

 

EXHIBIT “A”

MORTGAGED PROPERTY

LOT 1, PACIFIC SUNWEAR, AMENDED 1ST PLAT A SUBDIVISION IN THE CITY OF OLATHE, JOHNSON COUNTY,
KANSAS.

APN: DP557300000001

18exv4w1

EXHIBIT 4.1

 

MANNKIND CORPORATION

AND

WELLS FARGO BANK, NATIONAL ASSOCIATION

as Trustee

INDENTURE

Dated as of August 24, 2010

5.75% Convertible Senior Notes due 2015

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 1

Definitions; Interpretations
	 	 	 	 
	 
	 	 	 	 
	Section 1.01. Definitions
	 	 	1	 
	Section 1.02. References to Interest
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 2

Issue, Description, Execution, Registration and Exchange of Notes
	 	 	 	 
	 
	 	 	 	 
	Section 2.01. Designation and Amount
	 	 	12	 
	Section 2.02. Form of Notes
	 	 	12	 
	Section 2.03. Date and Denomination of Notes; Payments of Interest
	 	 	13	 
	Section 2.04. Execution, Authentication and Delivery of Notes
	 	 	15	 
	Section 2.05. Exchange and Registration of Transfer of Notes; Restrictions
on Transfer; Depositary; Automatic Exchange
	 	 	16	 
	Section 2.06. Mutilated, Destroyed, Lost or Stolen Notes
	 	 	21	 
	Section 2.07. Temporary Notes
	 	 	22	 
	Section 2.08. Cancellation of Notes Paid, Etc.
	 	 	23	 
	Section 2.09. CUSIP and ISIN Numbers
	 	 	23	 
	Section 2.10. Additional Notes; Purchases
	 	 	24	 
	 
	 	 	 	 
	ARTICLE 3

Satisfaction and Discharge
	 	 	 	 
	 
	 	 	 	 
	Section 3.01. Satisfaction and Discharge
	 	 	24	 
	Section 3.02. Deposited Monies To Be Held In Trust
	 	 	24	 
	Section 3.03. Return Of Unclaimed Monies
	 	 	25	 
	 
	 	 	 	 
	ARTICLE 4

Particular Covenants of the Company
	 	 	 	 
	 
	 	 	 	 
	Section 4.01. Payment of Principal and Interest
	 	 	25	 
	Section 4.02. Corporate Existence
	 	 	26	 
	Section 4.03. Rule 144A Information Requirement and Reports
	 	 	26	 
	Section 4.04. Compliance Certificate
	 	 	26	 
	Section 4.05. Maintenance of Office or Agency
	 	 	27	 
	Section 4.06. Paying Agents
	 	 	27	 
	Section 4.07. Appointment to Fill Vacancy in Office of Trustee
	 	 	28	 

i

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 5

Holders’ Lists and Reports by the Company and the Trustee
	 	 	 	 
	 
	 	 	 	 
	Section 5.01. Company to Furnish Trustee Names and Addresses of Holders
	 	 	28	 
	Section 5.02. Preservation Of Information; Communications With Holders
	 	 	29	 
	Section 5.03. Reports by the Trustee
	 	 	29	 
	 
	 	 	 	 
	ARTICLE 6

Default and Remedies
	 	 	 	 
	 
	 	 	 	 
	Section 6.01. Events of Default
	 	 	30	 
	Section 6.02. Acceleration of Maturity; Rescission and Annulment
	 	 	31	 
	Section 6.03. Other Remedies
	 	 	33	 
	Section 6.04. Waiver of Past Defaults
	 	 	33	 
	Section 6.05. Control by Majority
	 	 	33	 
	Section 6.06. Limitation On Suit
	 	 	34	 
	Section 6.07. Unconditional Rights of Holders to Receive Payment and to Convert
	 	 	35	 
	Section 6.08. Collection of Indebtedness and Suits For Enforcement By the Trustee
	 	 	35	 
	Section 6.09. Trustee May File Proofs of Claim
	 	 	36	 
	Section 6.10. Restoration of Rights and Remedies
	 	 	36	 
	Section 6.11. Rights and Remedies Cumulative
	 	 	37	 
	Section 6.12. Delay or Omission Not Waiver
	 	 	37	 
	Section 6.13. Application of Money Collected
	 	 	37	 
	Section 6.14. Undertaking For Costs
	 	 	37	 
	Section 6.15. Waiver of Stay or Extension Laws
	 	 	38	 
	Section 6.16. Notice of Default
	 	 	38	 
	 
	 	 	 	 
	ARTICLE 7

Concerning the Trustee
	 	 	 	 
	 
	 	 	 	 
	Section 7.01. Certain Duties and Responsibilities of Trustee
	 	 	39	 
	Section 7.02. Certain Rights of Trustee
	 	 	40	 
	Section 7.03. Trustee Not Responsible for Recitals or Issuance or Notes
	 	 	42	 
	Section 7.04. May Hold Notes
	 	 	42	 
	Section 7.05. Moneys Held in Trust
	 	 	42	 
	Section 7.06. Compensation and Reimbursement
	 	 	42	 
	Section 7.07. Reliance on Officer’s Certificate and Opinions
	 	 	44	 
	Section 7.08. Disqualification; Conflicting Interests
	 	 	44	 
	Section 7.09. Corporate Trustee Required; Eligibility
	 	 	44	 
	Section 7.10. Resignation and Removal; Appointment of Successor
	 	 	44	 
	Section 7.11. Acceptance of Appointment By Successor
	 	 	46	 
	Section 7.12. Merger, Conversion, Consolidation or Succession to Business
	 	 	47	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	Section 7.13. Preferential Collection of Claims Against the Company
	 	 	47	 
	 
	 	 	 	 
	ARTICLE 8

Concerning the Holders
	 	 	 	 
	 
	 	 	 	 
	Section 8.01. Evidence of Action by Holders
	 	 	48	 
	Section 8.02. Proof of Execution by Holders
	 	 	48	 
	Section 8.03. Who May be Deemed Owners
	 	 	49	 
	Section 8.04. Certain Notes Owned by Company Disregarded
	 	 	49	 
	Section 8.05. Actions Binding on Future Holders
	 	 	49	 
	 
	 	 	 	 
	ARTICLE 9

Amendments; Supplements And Waivers
	 	 	 	 
	 
	 	 	 	 
	Section 9.01. Without Consent of Holders
	 	 	50	 
	Section 9.02. With Consent of Holders
	 	 	51	 
	Section 9.03. Effect of Supplemental Indentures
	 	 	52	 
	Section 9.04. Notes Affected by Supplemental Indentures
	 	 	52	 
	Section 9.05. Execution of Supplemental Indentures
	 	 	52	 
	 
	 	 	 	 
	ARTICLE 10

Consolidation; Merger; Conveyance; Transfer Or Lease
	 	 	 	 
	 
	 	 	 	 
	Section 10.01. Company May Consolidate, Etc., Only on Certain Terms
	 	 	53	 
	Section 10.02. Successor Substituted
	 	 	54	 
	 
	 	 	 	 
	ARTICLE 11

Immunity of Incorporators, Stockholders, Officers and Directors
	 	 	 	 
	 
	 	 	 	 
	Section 11.01. No Recourse
	 	 	54	 
	 
	 	 	 	 
	ARTICLE 12

Additional Interest
	 	 	 	 
	 
	 	 	 	 
	Section 12.01. Additional Interest
	 	 	55	 
	 
	 	 	 	 
	ARTICLE 13

Conversion of Notes
	 	 	 	 
	 
	 	 	 	 
	Section 13.01. Conversion Privilege and Conversion Rate
	 	 	56	 
	Section 13.02. Conversion Procedure
	 	 	59	 
	Section 13.03. Fractional Shares
	 	 	60	 
	Section 13.04. Taxes on Conversion
	 	 	61	 
	Section 13.05. Company to Provide Common Stock
	 	 	61	 
	Section 13.06. Adjustment of Conversion Rate
	 	 	61	 
	Section 13.07. When No Adjustment is Required
	 	 	68	 

iii

 

	 	 	 	 	 
	 	 	Page	 
	Section 13.08. Notice of Adjustment
	 	 	69	 
	Section 13.09. Notice of Certain Transactions
	 	 	69	 
	Section 13.10. Effect of Reclassification, Consolidation, Merger or Sale On Conversion Privilege
	 	 	69	 
	Section 13.11. Trustee’s Disclaimer
	 	 	70	 
	Section 13.12. Voluntary Increase; Nasdaq Compliance
	 	 	71	 
	Section 13.13. Rights Plan
	 	 	71	 
	Section 13.14. Exchange in Lieu of Conversion
	 	 	71	 
	 
	 	 	 	 
	ARTICLE 14

Redemption Of Notes
	 	 	 	 
	 
	 	 	 	 
	Section 14.01. Right to Redeem
	 	 	73	 
	Section 14.02. Selection of Notes to be Redeemed
	 	 	74	 
	Section 14.03. Notice of Redemption
	 	 	75	 
	Section 14.04. Effect of Notice of Redemption
	 	 	75	 
	Section 14.05. Deposit of Redemption Price
	 	 	76	 
	Section 14.06. Notes Redeemed in Part
	 	 	76	 
	 
	 	 	 	 
	ARTICLE 15

Repurchase Of Notes
	 	 	 	 
	 
	 	 	 	 
	Section 15.01. Repurchase of Notes at Option of the Holder Upon a Fundamental Change
	 	 	76	 
	Section 15.02. Effect of Fundamental Change Purchase Notice
	 	 	79	 
	Section 15.03. Deposit of Fundamental Change Purchase Price
	 	 	79	 
	Section 15.04. Repayment to the Company
	 	 	80	 
	Section 15.05. Notes Purchased In Part
	 	 	80	 
	Section 15.06. Compliance With Securities Laws Upon Purchase of Notes
	 	 	81	 
	 
	 	 	 	 
	ARTICLE 16

Meeting Of Holders Of Notes
	 	 	 	 
	 
	 	 	 	 
	Section 16.01. Purposes For Which Meetings May Be Called
	 	 	81	 
	Section 16.02. Call Notice and Place of Meetings
	 	 	81	 
	Section 16.03. Persons Entitled to Vote at Meetings
	 	 	82	 
	Section 16.04. Quorum; Action
	 	 	82	 
	Section 16.05. Determination of Voting Rights; Conduct and Adjournment of Meetings
	 	 	82	 
	Section 16.06. Counting Votes and Recording Action of Meetings
	 	 	83	 
	 
	 	 	 	 
	ARTICLE 17

Miscellaneous Provisions
	 	 	 	 
	 
	 	 	 	 
	Section 17.01. Provisions Binding on Company’s Successors
	 	 	84	 

iv

 

	 	 	 	 	 
	 	 	Page	 
	Section 17.02. Official Acts by Successor
	 	 	84	 
	Section 17.03. Notices
	 	 	84	 
	Section 17.04. Governing Law
	 	 	84	 
	Section 17.05. Evidence of Compliance with Conditions Precedent;
Certificates and Opinions of Counsel to Trustee
	 	 	84	 
	Section 17.06. Legal Holidays
	 	 	85	 
	Section 17.07. No Security Interest Created
	 	 	85	 
	Section 17.08. Benefits of Indenture
	 	 	85	 
	Section 17.09. Table of Contents, Headings, Etc.
	 	 	85	 
	Section 17.10. Execution in Counterparts
	 	 	86	 
	Section 17.11. Severability
	 	 	86	 
	Section 17.12. Waiver of Jury Trial
	 	 	86	 
	Section 17.13. Consent to Jurisdiction
	 	 	86	 
	Section 17.14. Force Majeure
	 	 	86	 
	Section 17.15. Calculations
	 	 	87	 
	Section 17.16. U.S.A. Patriot Act
	 	 	87	 
	 
	 	 	 	 
	Exhibit A — Form of Note
	 	 	 	 

v

 

     INDENTURE dated as of August 24, 2010 between MannKind Corporation, a Delaware corporation, as
issuer (the “Company”) and Wells Fargo Bank, National Association, a national banking association,
as trustee (the “Trustee”).

W I T N E S S E T H:

     WHEREAS, for its lawful corporate purposes, the Company has duly authorized the issue of its
5.75% Convertible Senior Notes due 2015 (the “Notes”), initially in an aggregate principal amount
of $100,000,000, and in order to provide the terms and conditions upon which the Notes are to be
authenticated, issued and delivered, the Company has duly authorized the execution and delivery of
this Indenture; and

     WHEREAS, the Form of Note, the certificate of authentication to be borne by each Note, the
Form of Notice of Conversion, the Form of Fundamental Change Purchase Notice and the Form of
Assignment and Transfer to be borne by the Notes are to be substantially in the forms hereinafter
provided; and

     WHEREAS, all acts and things necessary to make the Notes, when executed by the Company and
authenticated and delivered by the Trustee or a duly authorized authenticating agent, as in this
Indenture provided, the valid, binding and legal obligations of the Company, and to constitute
these presents a valid agreement according to its terms, have been done and performed, and the
execution of this Indenture and the issue hereunder of the Notes have in all respects been duly
authorized.

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

     That in order to declare the terms and conditions upon which the Notes are, and are to be,
authenticated, issued and delivered, and in consideration of the premises and of the purchase and
acceptance of the Notes by the Holders thereof, the Company covenants and agrees with the Trustee
for the equal and proportionate benefit of the respective Holders from time to time of the Notes
(except as otherwise provided below), as follows:

ARTICLE 1

Definitions; Interpretations

     Section 1.01. Definitions. The terms defined in this Section 1.01 (except as herein
otherwise expressly provided or unless the context otherwise requires) for all purposes of this
Indenture and of any indenture supplemental hereto shall have the respective meanings specified in
this Section 1.01. All other terms used in this Indenture that are defined in the Trust Indenture
Act or that are by

 

 

reference therein defined in the Securities Act (except as herein otherwise expressly provided
or unless the context otherwise requires) shall have the meanings assigned to such terms in said
Trust Indenture Act and in the Securities Act as in force at the date of the execution of this
Indenture. The words “herein,” “hereof,” “hereunder,” and words of similar import refer to this
Indenture as a whole and not to any particular Article, Section or other subdivision. The terms
defined in this Article include the plural as well as the singular. Unless otherwise noted,
references to “U.S. Dollars” or “$” shall mean the currency of the United States.

     “5-day Volume-Weighted Average Price” means, with respect to any five Trading Day period, the
per share volume-weighted average price as displayed under the heading “Bloomberg VWAP” on
Bloomberg page “MNKD.UQ <equity> AQR” (or its equivalent successor if such page is not
available) in respect of such five Trading Day period from the scheduled open of trading on the
first Trading Day of such five Trading Day period until the scheduled close of trading of the
primary trading session on the last Trading Day of such five Trading Day period (or if such
volume-weighted average price is unavailable, the market value of one share of the Common Stock
during such five Trading Day period determined, using a volume-weighted average method, by a
nationally recognized independent investment banking firm retained for this purpose by the
Company). The “5-day Volume-Weighted Average Price” shall be determined without regard to after
hours trading or any other trading outside of the regular trading session trading hours.

     “Additional Interest” shall have the meaning specified in Section 12.01(a).

     “Additional Interest Event” shall have the meaning specified in Section 12.01(a).

     “Affiliate” of any specified Person means 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 specified Person means the
power to direct or cause the direction of 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.

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

2

 

     “Bankruptcy Law” shall have the meaning specified in Section 6.01.

     “Board of Directors” means the Board of Directors of the Company or any duly authorized
committee of such Board.

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

     “Business Day” means any day other than a day on which federal or state banking institutions
in the Borough of Manhattan, the City of New York, or in the city of the Corporate Trust Office of
the Trustee, are authorized or obligated by law, executive order or regulation to close.

     “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) the
equity of such Person, but excluding any debt securities convertible into such equity.

     “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.

     “Change of Control” means the occurrence of any of the following events from and after the
Issue Date:

     (i) the acquisition by any “person”, including any syndicate or group deemed to be a “person”
under Section 13(d)(3) of the Exchange Act is or becomes the “beneficial owner” (as defined in Rule
13d-3 under the Exchange Act) of the beneficial ownership, directly or indirectly, through a
purchase, merger or other acquisition transaction or series of transactions of shares of the
Company’s Capital Stock entitling that person to exercise 50% or more of the total voting power of
all shares of the Company’s Voting Stock, other than (x) any acquisition by the Company, any
Subsidiary or any of the Company’s employee benefit plans; (y) any acquisition during the lifetime
of Mann by Mann or his estate, by any trust where Mann is the trustee or grantor, by any
not-for-profit entity where the acquisition is directed by Mann or by any entity wholly-owned by
Mann or his estate; provided that the total beneficial ownership of all such Persons, together with
the Persons in (z), does not exceed 70% or more of the total voting power of all shares of the
Company’s Voting Stock; and (z) any acquisition by any Person so long as the shares acquired by
such Person are acquired directly from one of the Persons listed in (y) and no consideration is
paid in connection with such acquisition;

3

 

     (ii) the Company (A) recapitalizes, reclassifies or changes the Common Stock (other than
changes resulting from a subdivision or combination) as a result of which the Common Stock would be
converted into, or exchanged for, stock, other securities, other property or assets or (B)
exchanges its shares of Common Stock with, consolidates with, or merges with or into, another
Person or any Person exchanges its shares of common stock with, consolidates or merges with or into
the Company, or (C) conveys, transfers, sells, leases or otherwise disposes of all or substantially
all of its properties and assets to another Person, in each case other than (x) any transaction
pursuant to which holders of the Company’s Capital Stock immediately prior to the transaction have
the entitlement to exercise, directly or indirectly, 50% or more of the total voting power of all
shares of the Voting Stock of the continuing or surviving entity of such transaction; or (y) 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 traded or quoted on a U.S. national securities
exchange, and as a result of such merger the Notes become convertible into such shares; or

     (iii) the Company’s stockholders approve a plan of liquidation or dissolution.

     Notwithstanding anything to the contrary set forth herein, a Change of Control will be deemed
not to have occurred if, in the case of a merger or consolidation, at least 90% of the
consideration (excluding cash payments for fractional shares and cash payments pursuant to
dissenters’ appraisal rights) in a transaction or transactions otherwise constituting a Change of
Control consists of shares of common stock or American depository receipts traded or quoted on a
U.S. national securities exchange, or which will be so traded or quoted when issued or exchanged in
connection with the transaction or transactions, and as a result of the transaction or transactions
the Notes become convertible solely into such consideration.

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

     “Commission” means the Securities and Exchange Commission.

     “Common Stock” means the shares of common stock of the Company, par value $0.01 per share, as
it exists on the date of this Indenture or any other shares of Capital Stock of the Company into
which the Common Stock shall be reclassified or changed.

     “Company” means MannKind Corporation, a corporation duly organized and existing under the laws
of the State of Delaware, until a successor Person

4

 

shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter “Company” shall mean such successor Person.

     “Company Order” means a written order of the Company, signed by the Company’s Chief Executive
Officer, Chief Financial Officer, President, Executive Vice President or any Vice President
(whether or not designated by a number or numbers or word or words added before or after the title
“Vice President”), Treasurer or Assistant Treasurer or Secretary or any Assistant Secretary, and
delivered to the Trustee.

     “Conversion Agent” means the office or agency designated by the Company pursuant to Section
4.05 where Notes may be presented for conversion.

     “Conversion Date” shall have the meaning specified in Section 13.02(a).

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

     “Conversion Rate” means the rate at which shares of Common Stock shall be delivered upon
conversion, which rate shall be initially 147.0859 shares of Common Stock for each $1,000 principal
amount of Notes, as adjusted from time to time pursuant to the provisions of this Indenture.

     “Corporate Trust Office” means the office of the Trustee at which, at any particular time, its
corporate trust business shall be principally administered, which office at the date hereof is
located at Wells Fargo Bank, National Association, Sixth & Marquette, MAC N9303-120, Minneapolis,
MN 55479.

     “Custodian” means Wells Fargo Bank, National Association, as custodian for The Depository
Trust Company, with respect to the Global Notes, or any successor entity thereto.

     “Default” means any event, act or condition that with notice or lapse of time, or both, would
constitute an Event of Default.

     “Defaulted Interest” means any interest on any Note that is payable, but is not punctually
paid or duly provided for, on any February 15 or August 15.

     “Depositary” means, with respect to the Global Notes, the Person specified in Section 2.05(c)
as the Depositary with respect to such Notes, until a successor shall have been appointed and
become such pursuant to the applicable provisions of this Indenture, and thereafter, “Depositary”
shall mean or include such successor.

     “DTC” shall have the meaning specified in Section 2.05(c).

5

 

     “Ex-Dividend Date” means, in respect of an issuance, a dividend or distribution to holders of
Common Stock, the first date on which shares of Common Stock trade on the applicable exchange or in
the applicable market, regular way, without the right to receive such issuance, dividend or
distribution in question.

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

     “Exchange Settlement Property” shall have the meaning specified in Section 13.14(b)

     “Expiration Date” shall have the meaning specified in Section 13.06(e).

     “Expiration Time” shall have the meaning specified in Section 13.06(e).

     “Event of Default” shall have the meaning specified in Section 6.01.

     “Financial Institution” shall have the meaning specified in Section 13.14(a).

     “Form of Assignment and Transfer” shall mean the “Form of Assignment and Transfer” attached as
Attachment 3 to the Form of Note attached hereto as Exhibit A.

     “Form of Fundamental Change Purchase Notice” shall mean the “Form of Fundamental Change
Purchase Notice” attached as Attachment 2 to the Form of Note attached hereto as Exhibit A.

     “Form of Note” shall mean the “Form of Note” attached hereto as Exhibit A.

     “Form of Notice of Conversion” shall mean the “Form of Notice of Conversion” attached as
Attachment 1 to the Form of Note attached hereto as Exhibit A.

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

     “Fundamental Change Company Notice” shall have the meaning specified in Section 15.01(b).

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

6

 

     “Fundamental Change Make-Whole Premium” shall have the meaning specified in Section 13.01(e).

     “Fundamental Change Purchase Date” shall have the meaning specified in Section 15.01(a).

     “Fundamental Change Purchase Notice” shall have the meaning specified in Section 15.01(c).

     “Fundamental Change Purchase Price” of any Note, means 100% of the principal amount of the
Note to be repurchased plus unpaid interest, if any, accrued and unpaid to, but excluding, the
Fundamental Change Purchase Date; provided that if the Fundamental Change Purchase Date is after a
Regular Record Date and on or prior to the corresponding Interest Payment Date, the Fundamental
Change Purchase Price shall not include any accrued and unpaid interest.

     “Global Note” shall have the meaning specified in Section 2.05(b).

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

     “Indenture” means this instrument as originally executed or, if amended or supplemented as
herein provided, as so amended or supplemented.

     “Initial Purchasers” means Merrill Lynch, Pierce, Fenner & Smith Incorporated, Wells Fargo
Securities, LLC, Rodman & Renshaw, LLC and Imperial Capital, LLC.

     “Interest Payment Date” means each February 15 and August 15 of each year, beginning on
February 15, 2011; provided, however, that if any Interest Payment Date falls on a date that is not
a Business Day, such payment of interest will be postponed until the next succeeding Business Day,
and no interest or other amount will be paid as a result of such postponement.

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

     “Last Reported Sale Price” means on any Business Day or Trading Day, the reported last sale
price per share of the Company’s 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 Nasdaq Global Market or, if
the Company’s Common Stock (or the applicable security) is not quoted on the Nasdaq Global Market,
as reported by the principal national securities exchange on which the Company’s Common Stock (or
such other security) is listed, or if no such prices are available, the Last Reported Sale Price
per share shall be the fair

7

 

value of a share of Common Stock (or such other security) as reasonably
determined by the Board of Directors (which determination shall be conclusive and shall be
evidenced by an Officer’s Certificate delivered to the Trustee).

     “Make-Whole Fundamental Change” means any Fundamental Change as described in the definition
thereof, and determined after giving effect to any exceptions or exclusions to such definition, but
without regard to clause (ii)(x) of the definition of Change of Control and excluding a Fundamental
Change described under clause (iii) of the definition of Change of Control.

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

     “Make-Whole Fundamental Change Notice” has the meaning specified in Section 13.01(e).

     “Make-Whole Payment” means, with respect to each $1,000 in principal amount of Notes being
redeemed on a Redemption Date, a payment in cash equal to the present values of the remaining
scheduled payments of interest that would have been made on such Notes to be redeemed had such
Notes remained Outstanding from such Redemption Date through and including August 15, 2015
(excluding interest accrued to, but excluding, such Redemption Date, which is otherwise paid
pursuant to clause (ii) of the definition of Redemption Price). The present values of such
remaining interest payments shall be computed using a discount rate equal to 2.5%; provided that in
respect of a Redemption Date that is after a Regular Record Date and on or prior to the
corresponding Interest Payment Date, the Make-Whole Payment will not include the interest payment
to be paid on such Interest Payment Date.

     “Mann” means the individual Alfred E. Mann.

     “Market Disruption Event” means (1) a failure by the primary exchange or quotation system on
which the Common Stock trades or is quoted to open for trading during its regular trading session
or (2) the occurrence or existence, prior to 1:00 p.m., New York City time, on any Trading Day for
the Common Stock, of an aggregate one half-hour period of any suspension or limitation imposed on
trading (by reason of movements in price exceeding limits permitted by the stock exchange or
otherwise) in the Common Stock or in any options, contracts or future contracts relating to the
Common Stock.

     “Maturity Date” means August 15, 2015.

     “Note” or “Notes” shall have the meaning specified in the first “Whereas” clause of this
Indenture.

8

 

     “Note Register” shall have the meaning specified in Section 2.05(a).

     “Note Registrar” shall have the meaning specified in Section 2.05(a).

     “Notice of Redemption” has the meaning set forth in Section 14.03.

     “Offering Memorandum” means the final offering memorandum dated August 18, 2010 relating to
the offering and sale of the Notes pursuant to the Purchase Agreement.

     “Officer” means, with respect to the Company, the chairman of the Board of Directors, a chief
executive officer, a president, a chief financial officer, chief operating officer, any executive
vice president, any senior vice president, any vice
president, the treasurer or any assistant treasurer, the controller or any assistant
controller or the secretary or any assistant secretary.

     “Officer’s Certificate,” means a certificate signed by any Officer. Each such certificate
shall include the statements provided for in Section 17.05, if and to the extent required by the
provisions thereof.

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

     “Opinion of Counsel” means a written opinion, subject to customary exceptions, from legal
counsel who is reasonably acceptable to the Trustee that is delivered to the Trustee in accordance
with the terms hereof. The counsel may be an employee of or counsel to the Company or the Trustee.
Each such opinion shall include the statements provided for in Section 17.05 if and to the extent
required by the provisions thereof.

     “Outstanding,” when used with reference to Notes, shall, subject to the provisions of Section
8.04, mean, as of any particular time, all Notes authenticated and delivered by the Trustee under
this Indenture, except:

     (a) Notes theretofore canceled by the Trustee or accepted by the Trustee for
cancellation;

     (b) Notes that have been paid pursuant to Section 2.08 or Notes in lieu of which, or
in substitution for which, other Notes shall have been authenticated and delivered
pursuant to the terms of Section 2.06 unless proof satisfactory to the Trustee is
presented that any such Notes are held by protected purchasers in due course; and

     (c) Notes converted pursuant to Article 13.

     “Paying Agent” means the office or agency designated by the Company pursuant to Section 4.05
where Notes may be presented for payment.

9

 

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

     “Predecessor Note” of any particular Note means every previous Note evidencing all or a
portion of the same debt as that evidenced by such particular Note; and, for the purposes of this
definition, any Note authenticated and delivered under Section 2.06 in lieu of or in exchange for a
mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same debt as the
mutilated, lost, destroyed or stolen Note that it replaces.

     “Purchase Agreement” means that certain Purchase Agreement, dated as of August 18, 2015, among
the Company and the Initial Purchasers.

     “Receiver” shall have the meaning specified in Section 6.01.

     “Redemption Date” shall have the meaning specified in Section 14.01(c).

     “Redemption Price” shall have the meaning specified in Section 14.01(b).

     “Reference Property” shall have the meaning specified in Section 13.10.

     “Regular Record Date,” with respect to any Interest Payment Date, shall mean the February 1 or
August 1 (whether or not such day is a Business Day) immediately preceding such Interest Payment
Date.

     “Resale Restriction Termination Date” shall have the meaning specified in Section 2.05(c).

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

     “Restricted Securities” shall have the meaning specified in Section 2.05(c).

     “Rights” means any common stock or preferred stock purchase right or warrant, as the case may
be, that all or substantially all shares of Common Stock may be entitled to receive under a Rights
Plan.

10

 

     “Rights Plan” means any common stock or preferred stock rights plan or any similar plan
adopted by the Company after the date hereof.

     “Rule 144” means Rule 144 as promulgated under the Securities Act.

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

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

     “Special Interest” shall have the meaning specified in Section 6.02.

     “Spin-Off” shall have the meaning specified in Section 13.06(c).

     “Stock Price” means the price paid or deemed to be paid per share of the Common Stock in
connection with a Make-Whole Fundamental Change subject to adjustment as determined pursuant to
Section 13.01(e).

     “Subsidiary” means a corporation or other entity more than 50% of the outstanding Voting Stock
of which is owned, directly or indirectly, by the Company or by one or more other Subsidiaries of
the Company, or by the Company and one or more other Subsidiaries of the Company.

     “Termination of Trading” means the occurrence of the Common Stock (or other common stock into
which the Notes are convertible) not being listed for trading on a United States national
securities exchange nor approved for listing on any United States system of automated dissemination
of quotations of securities prices nor traded in over-the-counter securities markets and no
American Depositary Shares or similar instruments for the Common Stock are so listed or approved
for listing in the United States.

     “Trading Day” means any day during which trading in the Common Stock generally occurs on the
primary exchange or quotation system on which the Common Stock then trades or is quoted and there
is no Market Disruption Event, unless the Common Stock is not so traded or quotes, in which case
“Trading Day” means a Business Day.

     “transfer” shall have the meaning specified in Section 2.05(c).

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

     “Trustee” means the Person named as the “Trustee” in the first paragraph of this Indenture
until a successor Trustee shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Trustee” shall mean or include each Person who is then a Trustee
hereunder.

11

 

     “United States” means the United States of America.

     “Valuation Period” shall have the meaning specified in Section 13.06(c).

     “Voting Stock” of a Person means all classes of Capital Stock or other interests (including
partnership interests) of such Person then outstanding and normally entitled (without regard to the
occurrence of any contingency within the control of such person to satisfy) to vote in the election
of directors, managers or trustees thereof.

     Section 1.02. References to Interest. Any reference to the payment of interest on, or in
respect of, any Note in this Indenture shall be deemed to include mention of the payment of Special
Interest (if applicable) and Additional Interest (if applicable) if, in such context, Special
Interest and Additional Interest, as
applicable, was, or would be, payable pursuant to Section 6.01 and Section 12.01,
respectively. An express mention of the payment of Special Interest (if applicable) or Additional
Interest (if applicable) in any provision hereof shall not be construed as excluding Additional
Interest or Special Interest, as applicable, in those provisions hereof where such express mention
is not made.

ARTICLE 2

Issue, Description, Execution, Registration and Exchange of Notes

     Section 2.01. Designation and Amount. The Notes shall be designated as the “5.75%
Convertible Senior Notes due 2015.” The aggregate principal amount of Notes that may be
authenticated and delivered under this Indenture is initially limited to $100,000,000 (as increased
by an amount equal to the aggregate principal amount of any additional Notes purchased by the
Initial Purchasers pursuant to the exercise of their option to purchase additional Notes set forth
in the Purchase Agreement), subject to Section 2.10 and except for Notes authenticated and
delivered upon registration or transfer of, or in exchange for, or in lieu of other Notes pursuant
to Section 2.05, Section 2.06 and Section 2.07.

     Section 2.02. Form of Notes. The Notes and the Trustee’s certificate of authentication to be
borne by such Notes shall be substantially in the respective forms set forth in Exhibit A, which
are incorporated in and made a part of this Indenture.

     Any of the Notes may have such letters, numbers or other marks of identification and such
notations, legends or endorsements as the officer executing the same may approve (execution thereof
to be conclusive evidence of such approval) and as are not inconsistent with the provisions of this
Indenture, or as may be required to comply with any law or with any rule or regulation made
pursuant thereto or with any rule or regulation of any securities exchange or

12

 

automated quotation
system on which the Notes may be listed or designated for issuance, or to conform to usage or to
indicate any special limitations or restrictions to which any particular Notes are subject.

     The Global Note shall represent such principal amount of the Outstanding Notes as shall be
specified therein and shall provide that it shall represent the aggregate principal amount of
Outstanding Notes from time to time endorsed thereon and that the aggregate principal amount of
Outstanding Notes represented thereby may from time to time be increased or reduced to reflect
purchases, conversions, transfers, exchanges or issuances of additional Notes permitted hereby.
Any endorsement of the Global Note to reflect the amount of any increase or decrease in the amount
of Outstanding Notes represented thereby shall be made by the Trustee or the Custodian, at the
direction of the Trustee, in such manner and upon instructions given by the Holder of such Notes in
accordance with this Indenture. Payment of principal (including any Fundamental Change
Purchase Price or Redemption Price, as applicable) of, and accrued and unpaid interest, if
any, on, the Global Note shall be made to the Holder of such Note on the date of payment, unless a
record date or other means of determining Holders eligible to receive payment is provided for
herein.

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

     Section 2.03. Date and Denomination of Notes; Payments of Interest. The Notes shall be
issuable in registered form without coupons in denominations of $1,000 principal amount and
multiples thereof. Each Note shall be dated the date of its authentication and shall bear interest
from the date specified on the face of the Form of Note attached as Exhibit A hereto. Interest on
the Notes shall be computed on the basis of a 360-day year comprised of twelve 30-day months.

     The Person in whose name any Note (or its Predecessor Note) is registered on the Note Register
at the close of business on any Regular Record Date with respect to any Interest Payment Date shall
be entitled to receive the interest payable on such Interest Payment Date. Interest shall be
payable at the office of the Paying Agent, which shall initially be the Corporate Trust Office of
the Trustee as the Company’s Paying Agent and Note Registrar. The Company shall pay interest on any
Notes in certificated form (i) to the Person entitled thereto having an aggregate principal amount
of $2,000,000 or less, by check mailed to such Person at the address set forth in the Note Register
and (ii) to the Person entitled thereto having an aggregate principal amount of more than
$2,000,000, either by check mailed to such Person or, upon application by such Person to the Note
Registrar not later than the relevant Regular Record Date, by wire transfer in

13

 

immediately
available funds to such Person’s account within the United States, which application and wire
transfer instructions shall remain in effect until such Person notifies, in writing, the Note
Registrar to the contrary.

     Any Defaulted Interest shall forthwith cease to be payable to the Holder of such Note on the
relevant Regular Record Date by virtue of its having been such Holder, and such Defaulted Interest
shall be paid by the Company, at its election in each case, as provided in clause (1) or (2) below:

     (1) The Company may elect to make payment of any Defaulted Interest to the Persons in whose
names the Notes (or their respective Predecessor Notes) are registered at the close of business on
a special record date for the payment of such Defaulted Interest, which shall be fixed in the
following manner. The Company shall notify the Trustee in writing of the amount of Defaulted
Interest proposed to be paid on each Note and the date of the proposed payment (which shall be not
less than 20 days after the receipt by the Trustee of such notice, unless the Trustee shall consent
to an earlier date), and at the same time
the Company shall deposit with the Trustee an amount of money equal to the aggregate amount to
be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the
Trustee for such deposit on or prior to the date of the proposed payment, such money when deposited
to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this
clause provided. Thereupon the Company shall fix a special record date for the payment of such
Defaulted Interest which shall be not more than fifteen days and not less than ten days prior to
the date of the proposed payment, and not less than ten days after the receipt by the Trustee of
the notice of the proposed payment. The Company shall promptly notify the Trustee in writing of
such special record date and the Trustee, in the name and at the expense of the Company, shall
cause notice of the proposed payment of such Defaulted Interest and the special record date
therefor to be mailed, first-class postage prepaid, to each Holder at its address as it appears in
the Note Register, not less than ten days prior to such special record date. Notice of the
proposed payment of such Defaulted Interest and the special record date therefor having been so
mailed, such Defaulted Interest shall be paid to the Persons in whose names the Notes (or their
respective Predecessor Notes) are registered at the close of business on such special record date
and shall no longer be payable pursuant to the following clause (2) of this Section 2.03.

     (2) The Company may make payment of any Defaulted Interest in any other lawful manner not
inconsistent with the requirements of any securities exchange or automated quotation system on
which the Notes may be listed or designated for issuance, and upon such notice as may be required
by such exchange or automated quotation system, if, after notice given by the Company to the
Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed
practicable by the Trustee.

14

 

     If the Company makes a distribution of property to holders of Common Stock that would be
taxable to them as a dividend for United States federal income tax purposes and the Conversion Rate
is increased, the Company may offset any withholding tax applicable to non-United States Holders
against cash payments of interest payable on the Notes.

     Section 2.04. Execution, Authentication and Delivery of Notes. The Notes shall be signed in
the name and on behalf of the Company by the manual or facsimile signature of any Officer.

     At any time and from time to time after the date of the execution and delivery of this
Indenture, the Company may, in accordance with the terms of this Indenture, deliver additional
Notes executed by the Company to the Trustee for authentication, together with a Company Order for
the authentication and delivery of such Notes, and the Trustee in accordance with such Company
Order shall authenticate and deliver such Notes, without any further action by the Company
hereunder.

     Only such Notes as shall bear thereon a certificate of authentication substantially in the
form set forth on the Form of Note attached as Exhibit A hereto, executed manually by a Responsible
Officer of the Trustee (or an authorized officer of an authenticating agent appointed by the
Trustee), shall be entitled to the benefits of this Indenture or be valid or obligatory for any
purpose. Such certificate of authentication executed by the Trustee (or such an authenticating
agent) upon any Note executed by the Company shall be conclusive evidence that the Note so
authenticated has been duly authenticated and delivered hereunder and that the Holder is entitled
to the benefits of this Indenture.

     All Notes shall be dated that date of their authentication.

     In case any Officer of the Company who shall have signed any of the Notes shall cease to be
such Officer before the Notes so signed shall have been authenticated and delivered by the Trustee,
or disposed of by the Company, such Notes nevertheless may be authenticated and delivered or
disposed of as though the Person who signed such Notes had not ceased to be such Officer of the
Company; and any Note may be signed on behalf of the Company by such Person as, at the actual date
of the execution of such Note, shall be an Officer of the Company, although at the date of the
execution of this Indenture any such person was not such an Officer.

     The Trustee shall have the right to decline to authenticate and deliver any Notes under this
Indenture if the Trustee, being advised by counsel, determines that such action may not lawfully be
taken or if the Trustee in good faith shall

15

 

determine that such action would expose the Trustee to
personal liability to existing Holders.

     Section 2.05. Exchange and Registration of Transfer of Notes; Restrictions on Transfer;
Depositary; Automatic Exchange. (a) The Company shall cause to be kept at the Corporate Trust
Office a register (the register maintained in such office or in any other office or agency of the
Company being herein sometimes collectively referred to as the “Note Register”) in which, subject
to such reasonable regulations as it may prescribe, the Company shall provide for the registration
of Notes and of transfers of Notes. The Note Register shall be in written form or in any form
capable of being converted into written form within a reasonable period of time. The Trustee is
hereby appointed “Note Registrar” for the purpose of registering Notes and transfers of Notes as
herein provided. The Company may appoint a new Note Registrar without prior notice to Holders. The
Company may appoint one or more co-registrars.

     Upon surrender for registration of transfer of any Note to the Note Registrar or any
co-registrar, and satisfaction of the requirements for such transfer set forth in this Section
2.05, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Notes of any authorized denominations and of
a like aggregate
principal amount and bearing such restrictive legends as may be required by this Indenture.

     Notes may be exchanged for other Notes of any authorized denominations and of a like aggregate
principal amount, upon surrender of the Notes to be exchanged at any such office or agency
maintained by the Company pursuant to Section 4.05. Whenever any Notes are so surrendered for
exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the Notes that
the Holder making the exchange is entitled to receive, bearing registration numbers not
contemporaneously outstanding.

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

     No service charge shall be charged by the Company, the Trustee or the Notes Registrar to the
Holder for any exchange or registration of transfer of Notes, but the Holder may be required by the
Company, the Trustee, the Notes Registrar or otherwise to pay a sum sufficient to cover any tax,
assessments or other governmental charges that may be imposed in connection therewith as a result
of the name of the Holder of the new Notes issued upon such exchange or

16

 

registration of transfer of
Notes being different from the name of the Holder of the old Notes presented or surrendered for
such exchange or registration of transfer.

     None of the Company, the Trustee, the Note Registrar or any co-registrar shall be required to
exchange or register a transfer of any Notes surrendered for conversion, redemption or repurchase
except for any portion of that Note that is not being repurchased, redeemed or converted, as the
case may be.

     All Notes issued upon any registration of transfer or exchange of Notes in accordance with
this Indenture shall be the valid obligations of the Company, evidencing the same debt, and
entitled to the same benefits under this Indenture as the Notes surrendered upon such registration
of transfer or exchange. For greater certainty, all Notes issued upon any registration of transfer
or exchange of Notes will be issued as evidence of the same continuing indebtedness of the Company
under this Indenture and in no circumstances is the Company obligated under the Indenture to repay
the principal amount of the exchanged Notes by virtue of the registration of a transfer or
exchange.

     (b) So long as the Notes are eligible for book-entry settlement with the Depositary, unless
otherwise required by law or except as provided in Section 2.05(c), all Notes shall be represented
by one or more Notes in global form (each, a “Global Note”) registered in the name of the
Depositary or the nominee of the Depositary. The transfer and exchange of beneficial interests in
a Global Note
that does not involve the issuance of a Note in certificated form shall be effected through
the Depositary (but not the Trustee or the Custodian) in accordance with this Indenture (including
the restrictions on transfer set forth herein) and the procedures of the Depositary therefor.
Members of, or participants in, the Depositary (“Agent Members”) shall have no rights under this
Indenture with respect to any Global Note held on their behalf by the Depositary, or the Trustee as
its custodian, or under the Global Note, and the Depositary may be treated by the Company, the
Trustee and any agent of the Company or the Trustee as the absolute owner of the Global Note for
all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company,
the Trustee or any agent of the Company or the Trustee from giving effect to any written
certification, proxy or other authorization furnished by the Depositary or impair, as between the
Depositary and its Agent Members, the operation of customary practices governing the exercise of
the rights of any Holder.

     (c) Every Note that bears or is required under this Section 2.05(c) to bear the legend set
forth in this Section 2.05(c) (together with any Common Stock issued upon conversion of the Notes
and required to bear a similar legend, the “Restricted Securities”) shall be subject to the
restrictions on transfer set forth in this Section 2.05(c) (including the legend set forth below),
and the holder of each such Restricted Security, by such holder’s acceptance thereof, agrees to be
bound by all such restrictions on transfer. As used in this Section 2.05(c), the term

17

 

“transfer”
encompasses any sale, pledge, transfer or other disposition whatsoever of any Restricted Security.

     Until the date (the “Resale Restriction Termination Date”) that is the later of (1) the date
that is one year after the last date of original issuance of the Notes and (2) such later date, if
any, as may be required by applicable laws, any certificate evidencing such Note (and all
securities issued in exchange therefor or substitution thereof, and all shares of Common Stock, if
any, issued upon conversion thereof, if applicable) shall bear a legend in substantially the
following form (unless such Notes or shares of Common Stock, if any, have been transferred pursuant
to a registration statement that has become or been declared effective under the Securities Act and
that continues to be effective at the time of such transfer, pursuant to the exemption from
registration provided by Rule 144 or any similar provision then in force under the Securities Act,
or unless otherwise agreed by the Company in writing, with written notice thereof to the Trustee):

     THE SALE OF THIS NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND ACCORDINGLY, THIS NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, OR
OF A BENEFICIAL OWNERSHIP HEREIN, THE ACQUIRER: (I) REPRESENTS THAT IT, AND ANY ACCOUNT FOR WHICH
IT IS ACTING, IS A “QUALIFIED INSTITUTIONAL BUYER” (WITHIN THE MEANING OF RULE 144A UNDER THE
SECURITIES ACT) AND THAT IT EXERCISES
SOLE INVESTMENT DISCRETION WITH RESPECT TO EACH SUCH ACCOUNT, AND (II) AGREES (1) THAT IT WILL
NOT WITHIN THE LATER OF (X) ONE YEAR AFTER THE LAST DATE OF ORIGINAL ISSUANCE OF NOTES (INCLUDING
THROUGH THE EXERCISE OF THE OPTION TO PURCHASE ADDITIONAL NOTES) AND (Y) 90 DAYS AFTER IT CEASES TO
BE AN AFFILIATE (WITHIN THE MEANING OF RULE 144 UNDER THE SECURITIES ACT) OF MANNKIND CORPORATION
(THE “COMPANY”), OFFER, RESELL, PLEDGE OR OTHERWISE TRANSFER THE NOTES EVIDENCED HEREBY, THE COMMON
STOCK ISSUABLE UPON CONVERSION OF SUCH NOTES OR ANY BENEFICIAL OWNERSHIP HEREIN, EXCEPT: (A) TO THE
COMPANY OR ANY SUBSIDIARY THEREOF; (B) UNDER A REGISTRATION STATEMENT THAT HAS BECOME EFFECTIVE
UNDER THE SECURITIES ACT; (C) TO A PERSON THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) THAT IS PURCHASING FOR ITS
OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER QUALIFIED INSTITUTIONAL BUYER AND TO WHOM NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, ALL IN COMPLIANCE WITH RULE 144A (IF
AVAILABLE); OR (D) UNDER ANY OTHER AVAILABLE

18

 

EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, INCLUDING RULE 144, IF AVAILABLE; AND (2) THAT IT WILL, PRIOR TO ANY TRANSFER OF
THIS NOTE WITHIN THE LATER OF (X) SIX MONTHS (OR, IF THE COMPANY HAS NOT SATISFIED THE CURRENT
PUBLIC INFORMATION REQUIREMENTS OF RULE 144, ONE YEAR) AFTER THE LAST DATE OF ORIGINAL ISSUANCE OF
NOTES (INCLUDING THROUGH THE EXERCISE OF THE OPTION TO PURCHASE ADDITIONAL NOTES) AND (Y) 90 DAYS
AFTER IT CEASES TO BE AN AFFILIATE (WITHIN THE MEANING OF RULE 144) OF THE COMPANY, FURNISH TO THE
TRUSTEE AND THE COMPANY SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS THEY MAY
REQUIRE AND MAY RELY UPON TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
APPLICABLE STATE SECURITIES LAWS. IN ANY EVENT, NO AFFILIATE OF THE COMPANY MAY RESELL THIS NOTE
OTHER THAN UNDER A REGISTRATION STATEMENT THAT HAS BECOME EFFECTIVE UNDER THE SECURITIES ACT OR
PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT IN A TRANSACTION
THAT RESULTS IN SUCH NOTE NO LONGER BEING “RESTRICTED SECURITIES” (AS DEFINED UNDER RULE 144). NO
REPRESENTATION IS MADE AS TO THE AVAILABILITY OF ANY EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT. EACH PURCHASER AND TRANSFEREE OF A NOTE AND THE COMMON STOCK ISSUABLE UPON
CONVERSION OF A NOTE WILL BE DEEMED
TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING OF THE NOTE AND THE COMMON STOCK ISSUABLE UPON
CONVERSION OF THE NOTE THAT (A) ITS PURCHASE AND HOLDING OF THE NOTE AND THE COMMON STOCK ISSUABLE
UPON CONVERSION OF THE NOTE IS NOT MADE ON BEHALF OF OR WITH “PLAN ASSETS” OF ANY PLAN SUBJECT TO
TITLE I OF ERISA, SECTION 4975 OF THE CODE OR ANY SIMILAR LAW OR (B) ITS PURCHASE AND HOLDING OF
THE NOTE AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THE NOTE WILL NOT RESULT IN A NON-EXEMPT
PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA, SECTION 4975 OF THE CODE OR ANY SIMILAR LAW.

     Any Common Stock issued upon conversion of the Notes prior to the Resale Restriction
Termination Date shall bear a similar legend.

     No transfer of any Note prior to the Resale Restriction Termination Date will be registered by
the Note Registrar unless the applicable box on the Form of Assignment and Transfer has been
checked.

19

 

     Notwithstanding anything to the contrary contained in this Indenture or the Note, such Note
(or security issued in exchange or substitution therefor) as to which such restrictions on transfer
shall have expired in accordance with their terms may, upon surrender of such Note for exchange to
the Note Registrar in accordance with the provisions of this Section 2.05, be exchanged for a new
Note or Notes, of like tenor and aggregate principal amount, which shall not bear the restrictive
legend required by this Section 2.05(c).

     Notwithstanding any other provisions of this Indenture (other than the provisions set forth in
this Section 2.05(c)), a Global Note may not be transferred as a whole or in part except 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.

     The Depositary shall be a clearing agency registered under the Exchange Act. The Company
initially appoints The Depository Trust Company (“DTC”) to act as Depositary with respect to the
Global Note. Initially, the Global Notes shall be issued to the Depositary, registered in the name
of Cede & Co., as the nominee of the Depositary, and deposited with the Trustee as custodian for
DTC.

     If (i) the Depositary notifies the Company at any time that the Depositary is unwilling or
unable to continue as depositary for the Global Notes and a successor depositary is not appointed
within 90 days, (ii) the Depositary ceases to be registered as a clearing agency under the Exchange
Act and a successor depositary is not appointed within 90 days or (iii) an Event of Default with
respect to the Notes has occurred and is continuing, upon the request of the beneficial owner of
the Notes, the Company will execute, and the Trustee, upon receipt of
an Officer’s Certificate and a Company Order for the authentication and delivery of Notes,
will authenticate and deliver Notes in definitive form to each such beneficial owner of the related
Notes (or a portion thereof) in an aggregate principal amount equal to the principal amount of such
Global Note, in exchange for such Global Note, and upon delivery of the Global Note to the Trustee
such Global Note shall be canceled.

     Notes in certificated form issued in exchange for all or a part of the Global Note pursuant to
this Section 2.05(c) shall be registered in such names and in such authorized denominations as the
Depositary, pursuant to instructions from its direct or indirect participants or otherwise, shall
instruct the Trustee. Upon execution and authentication, the Trustee shall deliver such Notes in
certificated form to the Persons in whose names such Notes are so registered.

     At such time as all interests in a Global Note have been converted, canceled, redeemed,
purchased or transferred, such Global Note shall be, upon receipt thereof, canceled by the Trustee
in accordance with standing procedures

20

 

and instructions existing between the Depositary and the
Custodian. At any time prior to such cancellation, if any interest in a Global Note is exchanged
for Notes in certificated form, converted, canceled, purchased or transferred to a transferee who
receives Notes in certificated form therefor or any Note in certificated form is exchanged or
transferred for part of such Global Note, the principal amount of such Global Note shall, in
accordance with the standing procedures and instructions existing between the Depositary and the
Custodian, be appropriately reduced or increased, as the case may be, and an endorsement shall be
made on such Global Note, by the Trustee or the Custodian, at the direction of the Trustee, to
reflect such reduction or increase.

     None of the Company, the Trustee nor any agent of the Company or the Trustee will have any
responsibility or liability for any aspect of the records relating to or payments made on account
of beneficial ownership interests of a Global Note or maintaining, supervising or reviewing any
records relating to such beneficial ownership interests.

     (d) The Company may cause the removal of the legends required by Sections 2.06(c) from any
Global Note at any time on or after the Resale Restriction Date by: (i) instructing the Trustee to
remove the such legends from such Global Note; (ii) providing to the Trustee and the Depositary
written notice to change the CUSIP number for the Notes to the applicable unrestricted CUSIP
number; and (iv) complying with any Applicable Procedures for delegending or otherwise exchanging
such Global Note for a Global Note not bearing the restrictive legend (including DTC’s mandatory
exchange process, if applicable); whereupon any legends otherwise required by Section 2.06(c) shall
be removed from any Global Notes without any further action on the part of the Holders.

     Section 2.06. Mutilated, Destroyed, Lost or Stolen Notes. In case any Note shall become
mutilated or be destroyed, lost or stolen, the Company in its
discretion may execute, and upon its written request the Trustee or an authenticating agent
appointed by the Trustee shall authenticate and deliver, a new Note, bearing a number not
contemporaneously outstanding, in exchange and substitution for the mutilated Note, or in lieu of
and in substitution for the Note so destroyed, lost or stolen. In every case the applicant for a
substituted Note shall furnish to the Company, to the Trustee and, if applicable, to the
authenticating agent, such security or indemnity as may be required by them to save each of them
harmless from any loss, liability, cost or expense caused by or connected with such substitution,
and, in every case of destruction, loss or theft, the applicant shall also furnish to the Company,
to the Trustee and, if applicable, to the authenticating agent, evidence to their satisfaction of
the destruction, loss or theft of such Note and of the ownership thereof.

     The Trustee or the authenticating agent, if applicable, may authenticate any such substituted
Note and deliver the same upon the receipt of such security

21

 

or indemnity as the Trustee, the
Company and, if applicable, the authenticating agent may require. Upon the issuance of any
substitute Note, the Company or the Trustee may require the payment by the Holder of a sum
sufficient to cover any tax, assessment or other governmental charge that may be imposed in
relation thereto and any other expenses connected therewith. In case any Note that has matured or
is about to mature or has been tendered for redemption or purchase upon a Fundamental Change or is
about to be converted shall become mutilated or be destroyed, lost or stolen, the Company may, in
its sole discretion, instead of issuing a substitute Note, pay or authorize the payment of or
convert or authorize the conversion of the same (without surrender thereof except in the case of a
mutilated Note), as the case may be, if the applicant for such payment or conversion shall furnish
to the Company, to the Trustee and, if applicable, to the authenticating agent, such security or
indemnity as may be required by them to save each of them harmless for any loss, liability, cost or
expense caused by or connected with such substitution, and, in every case of destruction, loss or
theft, evidence satisfactory to the Company, the Trustee and, if applicable, any Paying Agent or
Conversion Agent evidence of their satisfaction of the destruction, loss or theft of such Note and
of the ownership thereof.

     Every substitute Note issued pursuant to the provisions of this Section 2.06 by virtue of the
fact that any Note is destroyed, lost or stolen shall constitute an additional contractual
obligation of the Company, whether or not the destroyed, lost or stolen Note shall be found at any
time, and shall be entitled to all the benefits of (but shall be subject to all the limitations set
forth in) this Indenture equally and proportionately with any and all other Notes duly issued
hereunder. To the extent permitted by law, all Notes shall be held and owned upon the express
condition that the foregoing provisions are exclusive with respect to the replacement or payment or
conversion or purchase of mutilated, destroyed, lost or stolen Notes and shall preclude any and all
other rights or remedies, notwithstanding any law or statute existing or hereafter enacted to the
contrary
with respect to the replacement or payment or conversion of negotiable instruments or other
securities without their surrender.

     For greater certainty, every substitute Note issued pursuant to the provisions of this Section
2.06 by virtue of the fact that any Note is mutilated, destroyed, lost or stolen will be issued as
evidence of the same continuing indebtedness of the Company under this Indenture and in no
circumstances is the Company obligated under the Indenture to repay the principal amount of the
substituted Note by virtue of such mutilation, destruction or loss.

     Section 2.07. Temporary Notes. Pending the preparation of Notes in certificated form, the
Company may execute and the Trustee or an authenticating agent appointed by the Trustee shall, upon
written request of the Company, authenticate and deliver temporary Notes (printed or lithographed).
Temporary Notes shall be issuable in any authorized denomination, and substantially in the

22

 

form of
the Notes in certificated form but with such omissions, insertions and variations as may be
appropriate for temporary Notes, all as may be determined by the Company. Every such temporary
Note shall be executed by the Company and authenticated by the Trustee or such authenticating agent
upon the same conditions and in substantially the same manner, and with the same effect, as the
Notes in certificated form. Without unreasonable delay, the Company will execute and deliver to
the Trustee or such authenticating agent Notes in certificated form (other than any Global Note)
and thereupon any or all temporary Notes (other than any Global Note) may be surrendered in
exchange therefor, at each office or agency maintained by the Company pursuant to Section 4.05 and
the Trustee or such authenticating agent shall authenticate and deliver in exchange for such
temporary Notes an equal aggregate principal amount of Notes in certificated form. Such exchange
shall be made by the Company at its own expense and without any charge therefor. Until so
exchanged, the temporary Notes shall in all respects be entitled to the same benefits and subject
to the same limitations under this Indenture as Notes in certificated form authenticated and
delivered hereunder.

     For greater certainty, each Note issued pursuant to the provisions of this Section 2.07 in
exchange for a temporary Note will be issued as evidence of the same continuing indebtedness of the
Company under this Indenture and in no circumstances is the Company obligated under the Indenture
to repay the principal amount of the temporary Note by virtue of the exchange.

     Section 2.08. Cancellation of Notes Paid, Etc. All Notes surrendered for the purpose of
payment, purchase, conversion, exchange or registration of transfer, shall, if surrendered to the
Company or any Paying Agent or any Note Registrar or any Conversion Agent, be surrendered to the
Trustee and promptly canceled by it, or, if surrendered to the Trustee, shall be promptly canceled
by it, and no Notes shall be issued in lieu thereof except as expressly permitted by any of the
provisions of this Indenture. The Trustee shall dispose of canceled Notes in accordance with its
customary procedures and, after such disposition, shall deliver
a written confirmation of such disposition to the Company, at the Company’s written request.
If the Company shall acquire any of the Notes, such acquisition shall not operate as satisfaction
of the indebtedness represented by such Notes unless and until the same are delivered to the
Trustee for cancellation.

     Section 2.09. CUSIP and ISIN Numbers. The Company in issuing the Notes may use “CUSIP” and
“ISIN” numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” and “ISIN”
numbers in all notices issued to Holders of the Notes as a convenience to such 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 Notes or on such notice and that reliance may be placed only on the other
identification numbers printed on the Notes. The

23

 

Company will promptly notify the Trustee in
writing of any change in the “CUSIP” or “ISIN” numbers.

     Section 2.10. Additional Notes; Purchases. The Company may, without the consent of the
Holders of the Notes and notwithstanding Section 2.01, issue additional Notes hereunder with the
same terms and with the same CUSIP and ISIN number as the Notes initially issued hereunder in an
unlimited aggregate principal amount, which will form the same series with the Notes initially
issued hereunder; provided that no such additional Notes may be issued unless they would constitute
a “qualified reopening” (as defined in Treas. Reg. Sec. 1.1275-2(k)) or both the original Notes and
the additional Notes are issued with no more than de minimis original issue discount for U.S.
federal income tax purposes. Prior to the issuance of any such additional Notes, the Company shall
deliver to the Trustee a Company Order, an Officer’s Certificate to the effect that such issuance
of additional Notes complies with the provisions of the Indenture (including this Section 2.10).
The Company may also from time to time purchase the Notes in open market purchases or negotiated
transactions without prior notice to Holders. Any Notes purchased by the Company shall be deemed
to be no longer Outstanding under this Indenture.

ARTICLE 3

Satisfaction and Discharge

     Section 3.01. Satisfaction and Discharge. This Indenture shall upon request of the Company
contained in an Officer’s Certificate cease to be of further effect, and the Trustee, at the
expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge
of this Indenture, when (a) (i) the Company delivers to the Trustee all Outstanding Notes (other
than Notes replaced pursuant to Section 2.06) for cancellation; or (ii) the Company has deposited
with the Trustee or delivered to Holders of Notes, as applicable, after the Notes have become due
and payable, whether at the Maturity Date, or any Fundamental Change Purchase Date, or upon
conversion or otherwise, cash and/or (in the case of conversion) shares of Common Stock (together
with cash in
lieu of fractional shares), as applicable, sufficient to pay all of the Outstanding Notes and
all other sums payable under this Indenture by the Company; and (b) the Company has delivered to
the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions
precedent herein provided for relating to the satisfaction and discharge of this Indenture have
been complied with. Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 7.06 shall survive such satisfaction and
discharge.

     Section 3.02. Deposited Monies To Be Held In Trust. Subject to Section 3.03 hereof, all
monies deposited with the Trustee pursuant to Section 3.01 hereof

24

 

shall be held in trust and
applied by it to the payment, either directly or through any Paying Agent (including the Company if
acting as its own Paying Agent), to the Holders for the payment or repurchase of which such monies
have been deposited with the Trustee, of all sums due and to become due thereon for principal,
premium, if any, and interest. All monies deposited with the Trustee pursuant to Section 3.01
hereof (and held by it or any Paying Agent) for the payment of Notes subsequently converted shall
be returned to the Company upon request of the Company.

     Section 3.03. Return Of Unclaimed Monies. The Trustee and the Paying Agent shall pay to the
Company upon written request any money held by them for the payment of principal of or accrued and
unpaid interest on the Notes that remains unclaimed for two years after the date upon which such
payment shall have become due. Notwithstanding the foregoing, the Trustee and Paying Agent shall
have the right to withhold payment of such money to the Company until the Trustee or Paying Agent
at the expense of the Company publishes in a newspaper of general circulation in New York City, or
mails to each Holder, a notice stating that such money shall be repaid to the Company if unclaimed
after a date no less than 30 days from the publication of such press release or mailing. After
payment to the Company by the Trustee or Paying Agent, all liability of the Trustee and the Paying
Agent with respect to such money shall cease, and Holders entitled to the money must look to the
Company for payment as general creditors, subject to applicable law.

ARTICLE 4

Particular Covenants of the Company

     Section 4.01. Payment of Principal and Interest. (a) The Company shall promptly make all
payments in respect of the Notes on the dates and in the manner provided in the Notes and this
Indenture. A payment of principal or interest shall be considered paid on the date it is due if the
Paying Agent holds by 10:00 a.m. (New York City time) on that date money or securities, deposited
by or on behalf of the Company sufficient to make the payment. The Company shall, to the fullest
extent permitted by law, pay interest in immediately available funds
on overdue principal amount and interest at the annual rate borne by the Notes compounded
semiannually, which interest shall accrue from the date such overdue amount was originally due to
the date payment of such amount, including interest thereon, has been made or duly provided for.
All such interest shall be payable on demand.

     (b) Payment of the principal of and interest, if any, on the Notes shall be made at the office
or agency of the Company maintained for that purpose, which shall initially be at the Trustee’s
Corporate Trust Office, in such coin or currency of the United States of America as at the time of
payment is legal tender for

25

 

payment of public and private debts; provided, however, that, subject
to Section 2.03, the Company may pay principal and interest in respect of any Note in certificated
form by check or wire transfer payable in such money. Notwithstanding the foregoing, so long as the
Notes are 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.

     Section 4.02. Corporate Existence. Subject to Article 10 hereof, the Company will do or
cause to be done all things necessary to preserve and keep in full force and effect its corporate
existence and rights (charter and statutory); provided, however, that the Company shall not be
required to preserve any such right or franchise if the Company determines that the preservation
thereof is no longer desirable in the conduct of the business of the Company and that the loss
thereof is not disadvantageous in any material respect to the Holders.

     Section 4.03. Rule 144A Information Requirement and Reports. (a) At any time the Company is
not subject to Sections 13 or 15(d) of the Exchange Act, the Company shall, so long as any of the
Notes or any shares of Common Stock issuable upon conversion thereof shall, at such time,
constitute “restricted securities” within the meaning of Rule 144(a)(3) under the Securities Act,
upon written request, provide to any Holder, beneficial owner or prospective purchaser of such
Notes or any shares of Common Stock issued upon conversion of such Notes, the information required
to be delivered pursuant to Rule 144A(d)(4) under the Securities Act to facilitate the resale of
such Notes or shares of Common Stock pursuant to Rule 144A under the Securities Act.

     (b) The Company shall furnish to the Trustee within 15 calendar days after the Company is
required to file any documents or reports with the Commission pursuant to Sections 13 or 15(d) of
the Exchange Act (giving effect to all applicable grace periods provided under the Exchange Act
including that provided by Rule 12b-25 under the Exchange Act) copies of such documents or reports.
Any such document or report that the Company files with the Commission through the Commission’s
EDGAR system shall be deemed furnished to the Trustee for purposes of this Section 4.03(b) at the
time such documents are filed or furnished via the Commission’s EDGAR system, provided that the
Trustee shall have no responsibility for determining whether such filing
has taken place, nor shall the Trustee have any liability for the timeliness or content of any
filing or report hereunder.

     Section 4.04. Compliance Certificate. The Company shall deliver to the Trustee, within 120
days after the end of each fiscal year of the Company
(beginning with the fiscal year ending
December 31, 2010) an Officer’s Certificate stating whether or not, to the knowledge of such
officer, the Company is in default in the performance and observance of any of the terms,
provisions and conditions of this Indenture and, if the Company shall be in default,

26

 

specifying
all such defaults and the nature and status thereof of which they may have knowledge. Within five
Business Days of an Officer of the Company coming to have actual knowledge of a Default or Event of
Default, regardless of the date, the Company shall deliver an Officer’s Certificate to the Trustee
specifying such Default or Event of Default and the nature and status thereof.

     Section 4.05. Maintenance of Office or Agency. So long as any Notes remain Outstanding, the
Company agrees to maintain an office or agency with respect to such Notes and at such other
location or locations as may be designated as provided in this Section 4.05, where (i) Notes may
be presented for conversion (“Conversion Agent”), (ii) Notes may be presented for payment (“Paying
Agent”), (ii) Notes may be presented as herein above authorized for registration of transfer and
exchange, and (iii) notices and demands to or upon the Company in respect of the Notes and this
Indenture may be given or served, such designation to continue with respect to such office or
agency until the Company shall, by written notice signed by any officer authorized to sign an
Officer’s Certificate and delivered to the Trustee, designate some other office or agency for such
purposes or any of them. If at any time the Company shall fail to maintain any such required office
or agency or shall fail to furnish the Trustee with the address thereof, such presentations,
notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the
Company hereby appoints the Trustee as its agent to receive all such presentations, notices and
demands. The Company initially appoints the Corporate Trust Office of the Trustee as Conversion
Agent and Paying Agent with respect to the Notes.

     Section 4.06. Paying Agents. (a) If the Company shall appoint one or more paying agents for
the Notes, other than the Trustee, the Company will cause each such paying agent to execute and
deliver to the Trustee an instrument in which such agent shall agree with the Trustee, subject to
the provisions of this Section 4.06:

     (i) that it will hold all sums held by it as such agent for the payment of the
principal of (and premium, if any) or interest on the Notes (whether such sums have been
paid to it by the Company or by any other obligor of such Notes) in trust for the benefit
of the Persons entitled thereto;

     (ii) that it will give the Trustee notice of any failure by the Company to make any
payment of the principal of (and premium, if any) or interest on the Notes when the same
shall be due and payable;

     (iii) that it will, at any time during the continuance of any failure referred to in
the preceding paragraph (a)(ii) above, upon the written request of the Trustee, forthwith
pay to the Trustee all sums so held in trust by such paying agent; and

27

 

     (iv) that it will perform all other duties of paying agent as set forth in this
Indenture.

     (b) If the Company shall act as its own paying agent with respect to any Notes, it will on or
before each due date of the principal of (and premium, if any) or interest on the Notes, set aside,
segregate and hold in trust for the benefit of the Persons entitled thereto a sum sufficient to pay
such principal (and premium, if any) or interest so becoming due on Notes until such sums shall be
paid to such Persons or otherwise disposed of as herein provided and will promptly notify the
Trustee of such action, or any failure to take such action. The Trustee shall have no liability or
responsibility for the action or inaction of any Paying Agent (that is not the Trustee).

     (c) Notwithstanding anything in this Section 4.06 to the contrary, (i) the agreement to hold
sums in trust as provided in this Section 4.06 is subject to the provisions of Section 3.02 and
Section 3.03, and (ii) the Company may at any time, for the purpose of obtaining the satisfaction
and discharge of this Indenture or for any other purpose, pay, or direct any paying agent to pay,
to the Trustee all sums held in trust by the Company or such paying agent, such sums to be held by
the Trustee upon the same terms and conditions as those upon which such sums were held by the
Company or such paying agent; and, upon such payment by the Company or any paying agent to the
Trustee, the Company or such paying agent shall be released from all further liability with respect
to such money.

     Section 4.07. Appointment to Fill Vacancy in Office of Trustee. The Company, whenever
necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided
in Section 7.10, a Trustee, so that there shall at all times be a Trustee hereunder.

ARTICLE 5

Holders’ Lists and Reports by the Company and the Trustee

     Section 5.01. Company to Furnish Trustee Names and Addresses of Holders. The Company will
furnish or cause to be furnished to the Trustee (a) within 10 days after each Regular Record Date,
a list, in such form as the Trustee may reasonably require, of the names and addresses of the
Holders as of such regular record date, provided that the Company shall not be obligated to furnish
or
cause to furnish such list at any time that the list shall not differ in any respect from the
most recent list furnished to the Trustee by the Company and
(b) at such other times as the Trustee
may request in writing within 30 days after the receipt by the Company of any such request, a list
of similar form and content as of a date not more than 15 days prior to the time such list is
furnished; provided, however, that, in either case, no such list need be furnished for any Notes
for which the Trustee shall be the Note Registrar.

28

 

     Section 5.02. Preservation Of Information; Communications With Holders.

     (a) The Trustee shall preserve, in as current a form as is reasonably practicable, all
information as to the names and addresses of the Holders of Notes contained in the most recent list
furnished to it as provided in Section 5.01 and as to the names and addresses of Holders of Notes
received by the Trustee in its capacity as Note Registrar (if acting in such capacity).

     (b) The Trustee may destroy any list furnished to it as provided in Section 5.01 upon receipt
of a new list so furnished.

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

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

     Section 5.03. Reports by the Trustee.

     (a) On or before July 1 in each year, commencing July 1, 2011, in which any of the Notes are
Outstanding, the Trustee shall transmit by mail, first class postage prepaid, to the Holders, as
their names and addresses appear upon the Note Register, a brief report dated as of the preceding
May 1, if and to the extent required under Section 313(a) of the Trust Indenture Act.

     (b) The Trustee shall comply with Section 313(b) and 313(c) of the Trust Indenture Act.

     (c) A copy of each such report shall, at the time of such transmission to Holders, be filed by
the Trustee with the Company, with each securities exchange upon which any Notes are listed (if so
listed) and also with the Securities and Exchange Commission. The Company agrees to notify the
Trustee when any Notes become listed on any securities exchange.

29

 

ARTICLE 6

Default and Remedies

     Section 6.01. Events of Default. An “Event of Default” shall occur when any of the following
occurs:

     (a) the Company fails to pay when due the principal of or premium, if any, on any of the Notes
at the Maturity Date, upon repurchase, redemption, acceleration or otherwise; or

     (b) the Company fails to pay an installment of interest on any of the Notes for 30 days after
the date when due; or

     (c) the Company fails to deliver when due all shares of Common Stock, together with cash
instead of fractional shares, and/or other property, if applicable, deliverable upon conversion of
the Notes pursuant to Article 13, which failure continues for 10 days; or

     (d) the Company fails to perform or observe any other term, covenant or agreement contained in
the Notes or this Indenture for a period of 60 days after written notice of such failure, requiring
the Company to remedy the same, shall have been given 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
then-Outstanding Notes; or

     (e) (i) the Company fails to make any payment by the end of the applicable grace period, if
any, after the maturity of any indebtedness for borrowed money in an amount in excess of
$25,000,000 or (ii) there is an acceleration of any indebtedness for borrowed money in an amount in
excess of $25,000,000 because of a default with respect to such indebtedness without such
indebtedness having been discharged or such acceleration having been cured, waived, rescinded or
annulled, in the case of either (i) or (ii) above, for a period of 30 days after written notice to
the Company by the Trustee or to the Company and the Trustee by Holders of at least 25% in
aggregate principal amount of the then-Outstanding Notes; or

     (f) the Company fails to provide a Fundamental Change Company Notice in accordance with
Section 15.01; or

     (g) a court having jurisdiction enters a decree or order under any Bankruptcy Law that: (i)
for relief against the Company in an involuntary case or proceeding; or adjudicates the Company
bankrupt or insolvent; or (ii) appoints a Receiver of the Company or of any substantial part of its
property; or (iii) orders the winding up or liquidation of the Company, and (iv) the decree or
order remains unstayed and in effect for a period of 90 days; or

30

 

     (h) the Company pursuant to or within the meaning of any Bankruptcy Law:

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

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

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

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

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

     (vi) consents to the filing of such a petition or the appointment of or taking
possession by a Receiver.

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

     Section 6.02. Acceleration of Maturity; Rescission and Annulment. If an Event of Default
with respect to Outstanding Notes (other than an Event of Default specified Section 6.01(g) or
6.01(h) hereof in respect of the Company) occurs and is continuing, the Trustee or the Holders of
at least 25% in aggregate principal amount of the then-Outstanding Notes, by written notice to the
Trustee, may declare the Notes due and payable at their principal amount plus any accrued and
unpaid interest, and thereupon the Trustee may, at its discretion, proceed to protect and enforce
the rights of the Holders by the appropriate judicial proceedings. Such declaration may be
rescinded and annulled with the written consent of the Holders of a majority in aggregate principal
amount of the then-Outstanding Notes, subject to the provisions of this Indenture.

     If an Event of Default specified in Section 6.01(g) or 6.01(h) hereof occurs and is
continuing, then all unpaid principal of and accrued and unpaid interest on the Outstanding Notes
shall become immediately due and payable, without any declaration or other act on the part of the
Trustee or any Holder.

     Notwithstanding the foregoing, at the election of the Company, the sole remedy for an Event of
Default specified in Section 6.01(d) relating to the failure by the Company to comply with its
reporting obligations under Section 4.03 and for any failure to comply with the requirements of
Section 314(a)(1) of the Trust

31

 

Indenture Act, shall (i) for the first 90 days after the occurrence
of such an Event
of Default, consist exclusively of the right to receive special interest on Notes (the
“Special Interest”) at an annual rate equal to 0.25% of the principal amount of the Outstanding
Notes, and (ii) for the next 90 days after the expiration of such 90 day period, consist
exclusively of the right to receive Special Interest on the Notes at an annual rate equal to 0.50%
of the principal amount of the Outstanding Notes.

     The Special Interest shall be paid semi-annually in arrears, with the first semi-annual
payment due on the first Interest Payment Date following the date on which the Special Interest
began to accrue on any Notes. The Special Interest will accrue on all Outstanding Notes from and
including the date on which an Event of Default relating to a failure to comply with the reporting
obligations under Section 4.03 or a failure to comply with the requirements of Section 314(a)(1) of
the Trust Indenture Act first occurs to but not including the 180th day thereafter (or such earlier
date on which the Event of Default relating to such reporting obligations shall have been cured or
waived). On such 180th day (or earlier, if such Event of Default is cured or waived pursuant to
Section 6.04 prior to such 180th day), such Special Interest will cease to accrue and, if such
Event of Default relating to such reporting obligations has not been cured or waived prior to such
180th day the Notes shall be subject to acceleration as provided above in this Section 6.02. The
provisions described in this paragraph shall not affect the rights of the Holders in the event of
the occurrence of any other Event of Default. In the event the Company does not elect to pay
Special Interest upon an Event of Default in accordance with this paragraph, the Notes will be
subject to acceleration as provided in this Section 6.02. If the Company elects to pay Special
Interest as the sole remedy for an Event of Default specified in Section 6.01(d) relating to the
failure by the Company to comply with its obligations under Section 4.03 or any failure to comply
with the requirements of Section 314(a)(1) of the Trust Indenture Act, the Company shall notify in
writing, in the manner provided for in Section 17.03, the Holders and the Trustee of such election
at any time on or before the close of business on the date on which such Event of Default first
occurs.

     The Holders of a majority in aggregate principal amount of the then-Outstanding Notes by
written notice to the Trustee may rescind and annul an acceleration and its consequences if:

     (1) all existing Events of Default, other than the nonpayment of principal (including the
Redemption Price and the Fundamental Change Purchase Price, if applicable) of or interest on the
Notes which has become due solely because of the acceleration, have been remedied, cured or waived,
and

     (2) the rescission would not conflict with any judgment or decree of a court of competent
jurisdiction;

32

 

     provided, however, that in the event such declaration of acceleration has been made based on
the existence of an Event of Default under Section 6.01(e) hereof and such Event of Default has
been remedied, cured or waived in
accordance with Section 6.01(e) hereof, then, without any further action by the Holders, such
declaration of acceleration shall be rescinded automatically and the consequences of such
declaration shall be annulled. No such rescission or annulment shall affect any subsequent Default
or impair any right consequent thereon.

     Section 6.03. Other Remedies. If an Event of Default with respect to Outstanding Notes
occurs and is continuing, the Trustee may pursue any available remedy by proceeding at law or in
equity to collect the payment of principal of or interest on the Notes or to enforce the
performance of any provision of the Notes.

     Section 6.04. Waiver of Past Defaults. The Holders, either (a) through the written consent of
not less than a majority in aggregate principal amount of the Notes then Outstanding or (b) by the
adoption of a resolution, at a meeting of Holders of the Notes then Outstanding at which a quorum
is present, by the Holders of at least a majority in aggregate principal amount of the Outstanding
Notes represented at such meeting, may, on behalf of the Holders of all of the Notes, waive an
existing Default or Event of Default, except a Default or Event of Default:

     (1) in the payment of the principal of or premium, if any, or interest on any Note;

     (2) in respect of the right to convert any Note in accordance with Article 13; or

     (3) in respect of the covenants or provisions hereof which, under Section 9.02 hereof, cannot
be modified or amended without the consent of the Holder of each Outstanding Note affected.

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

     Section 6.05. Control by Majority. The Holders, either (a) through the written consent of not
less than a majority in aggregate principal amount of the Notes then Outstanding, or (b) by the
adoption of a resolution, at a meeting of Holders of the Notes then Outstanding at which a quorum
is present, by the Holders of at least a majority in aggregate principal amount of the Outstanding
Notes represented at such meeting, shall have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee

33

 

or exercising any trust or power
conferred on the Trustee, subject to the provisions of this Indenture. However, the Trustee may
refuse to follow any direction that:

     (a) conflicts with any law or with this Indenture,

     (b) the Trustee determines may be unduly prejudicial to the rights of the Holders not joining
therein, or

     (c) in the Trustee’s reasonable judgment may expose the Trustee to personal liability.

     The Trustee may take any other action deemed proper by the Trustee which is not inconsistent
with such direction.

     Section 6.06. Limitation On Suit. No Holder of any Note may pursue any remedy with respect
to this Indenture or the Notes (including instituting any proceeding, judicial or otherwise, with
respect to this Indenture or for the appointment of a receiver or trustee), except, in the case of
a Default or Event of Default in the payment of the principal of or premium on, if any, or interest
on the Notes unless:

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

     (b) the Holders of at least 25% in aggregate principal amount of the Notes then Outstanding
shall have made a written request to the Trustee, and shall have offered to the Trustee indemnity
satisfactory to the Trustee, to pursue the remedy;

     (c) no direction inconsistent with such written request has been given to the Trustee by the
Holders of a majority in aggregate principal amount of the Notes then Outstanding (or such amount
as shall have acted at a meeting pursuant to the provisions of this Indenture);

     (d) such Holder or Holders have offered the Trustee security or indemnity satisfactory to the
Trustee against any costs, liabilities or expenses incurred in complying with such request; and

     (e) the Trustee has failed to comply with the request for 60 days after the receipt of such
request and an offer of indemnity.

     A Holder of Notes may not use this Indenture to prejudice the rights of another Holder of
Notes or to obtain a preference or priority over another Holder of Notes (it being understood that
the Trustee does not have an affirmative duty to

34

 

ascertain whether or not such actions or
forbearances are unduly prejudicial to such Holders).

     Section 6.07. Unconditional Rights of Holders to Receive Payment and to Convert. In addition
to the other rights and remedies set forth in this Article 6, the following shall apply with
respect to the Notes under this Indenture.

     Notwithstanding any other provision in this Indenture, the Holder of any Note shall have the
right, which is absolute and unconditional, to receive payment
of the principal amount (including the Redemption Price and the Fundamental Change Purchase
Price, if applicable), interest, the Make-Whole Payment, if any, and Fundamental Change Make-Whole
Premium, if any, in respect of the Notes held by such Holder, on or after the respective due dates
expressed in the Notes and this Indenture, and to convert such Note in accordance with Article 13,
and to bring suit for the enforcement of any such payment on or after such respective due dates or
for the right to convert in accordance with Article 13, and shall not be impaired or affected
without the consent of such Holder.

     Section 6.08. Collection of Indebtedness and Suits For Enforcement By the Trustee. The
Company covenants that if an Event of Default occurs under Section 6.01(a) or Section 6.01(b), then
the Company shall, upon demand of the Trustee, pay to it, for the benefit of the Holders of such
Notes, the whole amount then due and payable (as expressed therein or as a result of any
acceleration effected pursuant to Section 6.02 hereof) on such Notes for principal (including the
Redemption Price and Fundamental Change Purchase Price, if applicable) and premium, if any, and
interest and, to the extent that payment of such interest shall be legally enforceable, interest on
any overdue principal (including the Redemption Price and the Fundamental Change Purchase Price, if
applicable) and premium, if any, and on any overdue interest, in each case at the rate borne by the
Notes from the required payment date, and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

     If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own
name and as trustee of an express trust, may institute a judicial proceeding for the collection of
the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may
enforce the same against the Company and collect the moneys adjudged or decreed to be payable in
the manner provided by law out of the property of the Company, wherever situated.

     If an Event of Default occurs and is continuing, the Trustee may in its discretion proceed to
protect and enforce its rights and the rights of the Holders of Notes by such appropriate judicial
proceedings as the Trustee shall deem most

35

 

effectual to protect and enforce any such rights,
whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of
the exercise of any power granted herein, or to enforce any other proper remedy.

     Section 6.09. Trustee May File Proofs of Claim. In case of the pendency of any receivership,
insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to the Company or the property of the Company or its creditors, the
Trustee (irrespective of whether the principal of the Notes shall then be due and payable as
therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have
made any demand on the Company for the payment of overdue
principal or interest) shall be entitled and empowered, by intervention in such proceeding or
otherwise, (1) to file and prove a claim for the whole amount of principal (including the
Redemption Price and the Fundamental Change Purchase Price, if applicable) and premium, if any, and
interest owing and unpaid in respect of the Notes and to file such 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 any other amounts due to the Trustee hereunder) and of the Holders of Notes allowed in
such judicial proceeding, and (2) to collect and receive any moneys or other property payable or
deliverable on any such claim and to distribute the same; and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or other similar official in any such judicial proceedings is
hereby authorized by each Holder of Notes 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 of Notes, 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
this Indenture.

     Nothing contained herein shall be deemed to authorize the Trustee to authorize or consent to
or accept, or adopt on behalf of any Holder of a Note, any plan of reorganization, arrangement,
adjustment or composition affecting the Notes or the rights of any Holder thereof or to authorize
the Trustee to vote in respect of the claim of any Holder of a Note in any such proceeding.

     Section 6.10. Restoration of Rights and Remedies. If the Trustee or any Holder of a Note has
instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding
has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee
or to such Holder, then and in every such case, subject to any determination in such proceeding,
the Company, the Trustee and the Holders of Notes shall be restored severally and respectively to
their former positions hereunder and thereafter all rights and remedies of the Trustee and the
Holders shall continue as though no such proceeding had been instituted.

36

 

     Section 6.11. Rights and Remedies Cumulative. Except as otherwise provided with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Notes in Section 2.05(d), no
right or remedy conferred in this Indenture upon or reserved to the Trustee or to the Holders of
Notes is intended to be exclusive of any other right or remedy, and every right and remedy shall,
to the extent permitted by law, be cumulative and in addition to every other right and remedy given
hereunder or hereafter existing at law or in equity or otherwise. The assertion or employment of
any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

     Section 6.12. Delay or Omission Not Waiver. No delay or omission of the Trustee or of any
Holder of any Note to exercise any right or remedy accruing
upon any Event of Default shall impair any such right or remedy or constitute a waiver of any
such Event of Default or any acquiescence therein. Every right and remedy given by this Article or
by law to the Trustee or to the Holders of Notes may be exercised from time to time, and as often
as may be deemed expedient, by the Trustee or by the Holders of Notes, as the case may be.

     Section 6.13. Application of Money Collected. Any money and property collected by the
Trustee pursuant to this Article 6 shall be applied in the following order, at the date or dates
fixed by the Trustee and, in case of the distribution of such money and property on account of
principal (including the Redemption Price and the Fundamental Change Purchase Price, if applicable)
or premium, if any, or interest, upon presentation of the Notes and the notation thereon of the
payment if only partially paid and upon surrender thereof if fully paid:

     FIRST: To the payment of all amounts due the Trustee, including its agents and counsel;

     SECOND: To the payment of the amounts then due and unpaid for principal (including the
Redemption Price and the Fundamental Change Purchase Price, if applicable) of and premium, if any,
and interest on the Notes and coupons in respect of which or for the benefit of which such money
has been collected, ratably, without preference or priority of any kind, according to the amounts
due and payable on such Notes for principal (including the Redemption Price and the Fundamental
Change Purchase Price, if applicable) and premium, if any, and interest, respectively; and

     THIRD: Any remaining amounts shall be repaid to the Company.

     Section 6.14. Undertaking For Costs. All parties to this Indenture agree, and each Holder of
any Note by such Holder’s acceptance thereof shall be deemed to have agreed, that any court may in
its discretion require, in any suit for the enforcement of any right or remedy under this
Indenture, or in any suit against

37

 

the Trustee for any action taken, suffered or omitted by it as Trustee, the filing by any
party litigant in such suit of an undertaking to pay the costs of such suit, and that such court
may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any
party litigant in such suit, having due regard to the merits and good faith of the claims or
defenses made by such party litigant; but the provisions of this Section 6.14 shall not apply to
any suit instituted by the Company, to any suit instituted by the Trustee, to any suit instituted
by any Holder, or group of Holders, holding in the aggregate more than 10% in aggregate principal
amount of the Notes then Outstanding, or to any suit instituted by any Holder of any Note for the
enforcement of the payment of the principal (including the Redemption Price and the Fundamental
Change Purchase Price, if applicable) of or premium, if any, or interest on any Note on or after
the stated maturity expressed in such Note ( or in the case of a redemption, on or after the
Redemption Date or, in the case of exercise of a repurchase right in connection with a Fundamental
Change, on or after the Fundamental Change Purchase Date) or for the enforcement of the right to
convert any Note in accordance with Article 13.

     Section 6.15. Waiver of Stay or Extension Laws. The Company covenants (to the extent that it
may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever
claim to take the benefit or advantage of, any stay or extension law wherever enacted, now or at
any time hereafter in force, which may affect the covenants or the performance of this Indenture;
and the Company (to the extent that it may lawfully do so) hereby expressly waives all benefit or
advantage of any such law and covenants that it will not hinder, delay or impede the execution of
any power herein granted to the Trustee, but will suffer and permit the execution of every such
power as though no such law had been enacted.

     Section 6.16. Notice of Default. If any Default or any Event of Default occurs and is
continuing and if such Default or Event of Default is actually known to a Responsible Officer of
the Trustee, the Trustee shall within 90 days of the occurrence of a Default or Event of Default,
mail to each Holder notice of all uncured Defaults or Events of Default known to the Trustee,
unless such Default or Event of Default has been cured; provided, however, that, except in the case
of a default in the payment of the principal of (including upon redemption or repurchase, as
applicable) or premium, if any, or interest on any Note, the Trustee shall be protected in
withholding such notice if the Trustee in good faith determines that the withholding of such notice
is in the best interest of such Holders.

38

 

ARTICLE 7

Concerning the Trustee

     Section 7.01. Certain Duties and Responsibilities of Trustee.

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

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

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

     (A) the duties and obligations of the Trustee shall with respect to the
Notes be determined solely by the express provisions of this Indenture,
and the Trustee shall not be liable with respect to the Notes except for
the performance of such duties and obligations as are specifically set forth in
this Indenture and subject to the terms of this Indenture, and no implied
covenants or obligations shall be read into this Indenture against the Trustee;
and

     (B) in the absence of bad faith on the part of the Trustee, the Trustee may
with respect to the Notes conclusively rely, as to the truth of the statements
and the correctness of the opinions expressed therein, upon any certificates or
opinions furnished to the Trustee and conforming to the requirements of this
Indenture; but in the case of any such certificates or opinions that by any
provision hereof are specifically required to be furnished to the Trustee, the
Trustee shall be under a duty to examine the same to determine whether or not
they conform to the requirements of this Indenture;

     (ii) the Trustee shall not be liable for any error of judgment made in good faith by
a Responsible Officer or Responsible Officers of

39

 

the Trustee, unless it shall be proved that the Trustee was negligent in ascertaining
the pertinent facts;

     (iii) the Trustee shall not be liable with respect to any action taken or omitted to
be taken by it in good faith in accordance with the direction of the Holders of not less
than a majority in principal amount of the Notes at the time Outstanding relating to the
time, method and place of conducting any proceeding for any remedy available to the
Trustee, or exercising any trust or power conferred upon the Trustee under this Indenture
with respect to the Notes; and

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

     Section 7.02. Certain Rights of Trustee. Except as otherwise provided in Section 7.01:

     (a) the Trustee may rely conclusively and shall be protected in acting or refraining from
acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request,
consent, order, approval, bond, security or other paper or document believed by it to be genuine
and to have been signed or presented by the proper party or parties;

     (b) any request, direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by a Board Resolution or an instrument signed in the name of the Company by
any authorized officer of the Company (unless other evidence in respect thereof is specifically
prescribed herein);

     (c) the Trustee may consult with counsel and the written advice of such counsel or any Opinion
of Counsel shall be full and complete authorization and protection in respect of any
action taken or suffered or omitted hereunder in good faith and in reliance thereon;

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

40

 

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

     (f) 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, consent,
order, approval, bond, security, or other papers or documents, unless requested in writing so to do
by the Holders of not less than a majority in principal amount of the Outstanding Notes affected
thereby (determined as provided in Section 8.04); provided, however, that if the payment within a
reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred by it in
the making of such investigation is, in the opinion of the Trustee, not reasonably assured to the
Trustee by the security afforded to it by the terms of this Indenture, the Trustee may require
reasonable indemnity against such costs, expenses or liabilities as a condition to so proceeding.
The reasonable expense of every such examination shall be paid by the Company or, if paid by the
Trustee, shall be repaid by the Company upon demand;

     (g) the Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents, attorneys or other professionals or consultants
and may retain such parties in furtherance of its administration hereunder and the Trustee shall
not be responsible for any misconduct or negligence on the part of any such agent, attorney or
other professional appointed with due care by it hereunder;

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

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

     (j) the Trustee shall not be required to give any bond or surety in respect of the performance
of its powers and duties hereunder; and

     (k) the Trustee may request that the Company deliver a certificate setting forth the names of
individuals and/or titles of officers authorized at such time to take specified actions pursuant to
this Indenture.

     In addition, the Trustee shall not be deemed to have knowledge of any Default or Event of
Default except (1) any Event of Default occurring pursuant to

41

 

Section 6.01(a) and 6.01(b)) or (2) any Default or Event of Default of which the Trustee shall
have received written notification in the manner set forth in this Indenture or a Responsible
Officer of the Trustee shall have obtained actual knowledge. Delivery of reports, information and
documents to the Trustee under Section 4.03 is for informational purposes only and the information
and the Trustee’s receipt of the foregoing shall not constitute constructive notice of any
information contained therein, or determinable from information contained therein including the
Company’s compliance with any of their covenants thereunder (as to which the Trustee is entitled to
rely conclusively on an Officer’s Certificate).

     Section 7.03. Trustee Not Responsible for Recitals or Issuance or Notes.

     (a) The recitals contained herein and in the Notes shall be taken as the statements of the
Company, and the Trustee assumes no responsibility for the correctness of the same.

     (b) The Trustee makes no representations as to the validity or sufficiency of this Indenture
or of the Notes;

     (c) The Trustee shall not be accountable for the use or application by the Company of any of
the Notes or of the proceeds of such Notes, or for the use or application of any moneys paid over
by the Trustee in accordance with any provision of this Indenture, or for the use or application of
any moneys received by any Paying Agent other than the Trustee, acting in such capacity.

     Section 7.04. May Hold Notes. The Trustee or any Paying Agent or Note Registrar, in its
individual or any other capacity, may become the owner or pledgee of Notes with the same rights it
would have if it were not Trustee, Paying Agent or Note Registrar.

     Section 7.05. Moneys Held in Trust. Subject to the provisions of Section 3.03, all moneys
received by the Trustee shall, until used or applied as herein provided, be held in trust for the
purposes for which they were received, but need not be segregated from other funds except to the
extent required by law. The Trustee shall be under no liability for interest on any moneys received
by it hereunder except such as it may agree to in writing with the Company to pay thereon.

     Section 7.06. Compensation and Reimbursement.

     (a) The Company covenants and agrees to pay to the Trustee, and the Trustee shall be entitled
to, such compensation (which shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust) as the Company and the Trustee may from time to time
agree in writing, for all

42

 

services rendered by it in the execution of the trusts hereby created and in the exercise and
performance of any of the powers and duties hereunder of the Trustee, and, except as otherwise
expressly provided herein, the Company will pay or reimburse the Trustee upon its request for all
reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with
any of the provisions of this Indenture (including the reasonable compensation and the expenses and
disbursements of its counsel and of all Persons not regularly in its employ), except any such
expense, disbursement or advance as may arise from its negligence or bad faith and except as the
Company and Trustee may from time to time agree in writing. The Company also covenants to indemnify
the Trustee (and its officers, agents, directors and employees) for, and to hold it harmless
against, any loss, liability or expense incurred without negligence or bad faith on the part of the
Trustee and arising out of or in connection with the acceptance or administration of this trust,
including the reasonable costs and expenses of defending itself against any claim of liability in
the premises.

     (b) The obligations of the Company under this Section 7.06 to compensate and indemnify the
Trustee and to pay or reimburse the Trustee for reasonable expenses, disbursements and advances
shall constitute additional indebtedness hereunder. Such additional indebtedness shall be secured
by a lien prior to that of the Notes upon all property and funds held or collected by the Trustee
as such, except funds held in trust for the benefit of the Holders.

     (c) The Company covenants and agrees to indemnify the Trustee for, and hold it harmless from
and against, any loss, liability or expense reasonably incurred by it arising out of or in
connection with the acceptance or administration of the trust or trusts hereunder or the
performance of its duties hereunder, including the reasonable costs and expenses of defending
itself against any claim or liability in connection with the exercise or performance of any of its
powers or duties hereunder except to the extent any such loss, liability or expense may be
attributable to its negligence, willful misconduct or bad faith.

     (d) In addition and without prejudice to the rights provided to the Trustee under any of the
provisions of this Indenture, when the Trustee incurs expenses or renders services in connection
with an Event of Default specified in Section 6.01(g) or Section 6.01(h), the expenses (including
the reasonable charges and expenses of its counsel) and the compensation for the services are
intended to constitute expenses of administration under any applicable Federal and State
bankruptcy, insolvency or other similar law.

     (e) The Company’s obligations under this Section 7.06 and the lien referred to in Section
7.06(b) shall survive the resignation or removal of the Trustee, the discharge of the Company’s
obligations under Article Eleven of this Indenture and/or the termination of this Indenture.

43

 

     Section 7.07. Reliance on Officer’s Certificate and Opinions. Except as otherwise provided
in Section 7.01, whenever in the administration of the provisions of this Indenture the Trustee
shall deem it reasonably necessary or desirable that a matter be proved or established prior to
taking or suffering or omitting to take any action hereunder, such matter (unless other evidence in
respect thereof be herein specifically prescribed) may, in the absence of negligence or bad faith
on the part of the Trustee, be deemed to be conclusively proved and established by an Officer’s
Certificate and Opinion of Counsel delivered to the Trustee and such certificate or opinion, in the
absence of negligence or bad faith on the part of the Trustee, shall be full warrant to the Trustee
for any action taken, suffered or omitted to be taken by it under the provisions of this Indenture
upon the faith thereof.

     Section 7.08. Disqualification; Conflicting Interests. If the Trustee has or shall acquire
any “conflicting interest” within the meaning of Section 310(b) of the Trust Indenture Act.

     Section 7.09. Corporate Trustee Required; Eligibility. There shall at all times be a Trustee
with respect to the Notes issued hereunder which shall at all times be a corporation organized and
doing business under the laws of the United States of America or any state or territory thereof or
of the District of Columbia, or a corporation or other Person permitted to act as trustee by the
Securities and Exchange Commission, authorized under such laws to exercise corporate trust powers,
having a combined capital and surplus of at least fifty million U.S. dollars ($50,000,000), and
subject to supervision or examination by federal, state, territorial, or District of Columbia
authority.

     If such corporation or other Person publishes reports of condition at least annually, pursuant
to law or to the requirements of the aforesaid supervising or examining authority, then for the
purposes of this Section 7.09, the combined capital and surplus of such corporation or other Person
shall be deemed to be its combined capital and surplus as set forth in its most recent report of
condition so published. The Company may not, nor may any Person directly or indirectly controlling,
controlled by, or under common control with the Company, serve as Trustee. In case at any time the
Trustee shall cease to be eligible in accordance with the provisions of this Section 7.09, the
Trustee shall resign immediately in the manner and with the effect specified in Section 7.10.

     Section 7.10. Resignation and Removal; Appointment of Successor.

     (a) The Trustee or any successor hereafter appointed may at any time resign with respect to
the Notes by giving written notice thereof to the Company. Upon receiving such notice of
resignation, the Company shall promptly appoint a successor trustee with respect to the Notes by
written instrument, in duplicate, executed by order of the Board of Directors, one copy of which
instrument shall

44

 

be delivered to the resigning Trustee and one copy to the successor trustee. If no successor
trustee shall have been so appointed and have accepted appointment within 30 days after the mailing
of such notice of resignation, the resigning Trustee, at the expense of the Company, may petition
any court of competent jurisdiction for the appointment of a successor trustee with respect to the
Notes, or any Holder who has been a bona fide Holder of Notes for at least six months may on behalf
of himself and all others similarly situated, petition any such court for the appointment of a
successor trustee. Such court may thereupon after such notice, if any, as it may deem proper and
prescribe, appoint a successor trustee.

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

     (i) the Trustee shall fail to comply with the provisions of Section 7.08 after
written request therefor by the Company or by any Holder who has been a bona fide Holder
of Notes for at least six months;

     (ii) the Trustee shall cease to be eligible in accordance with the provisions of
Section 7.09 and shall fail to resign after written request therefor by the Company or by
any such Holder; or

     (iii) the Trustee shall become incapable of acting, or shall be adjudged a bankrupt
or insolvent, or commence a voluntary bankruptcy proceeding, or a receiver of the Trustee
or of its property shall be appointed or consented to, or any public officer shall take
charge or control of the Trustee or of its property or affairs for the purpose of
rehabilitation, conservation or liquidation,

     then, in any such case, the Company may remove the Trustee with respect to the Notes and
appoint a successor trustee by written instrument, in duplicate, executed by order of the Board of
Directors, one copy of which instrument shall be delivered to the Trustee so removed and one copy
to the successor trustee, or any Holder who has been a bona fide Holder of Notes for at least six
months may, on behalf of that Holder and all others similarly situated, petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor trustee.
Such court may thereupon after such notice, if any, as it may deem proper and prescribe, remove the
Trustee and appoint a successor trustee.

     (c) The Holders of a majority in aggregate principal amount of the Notes at the time
Outstanding may at any time remove the Trustee by so notifying the Trustee and the Company in
writing and may appoint a successor Trustee with the consent of the Company.

     (d) Any resignation or removal of the Trustee and appointment of a successor trustee with
respect to the Notes pursuant to any of the provisions of

45

 

this Section 7.10 shall become effective upon acceptance of appointment by the successor
trustee as provided in Section 7.11.

     Section 7.11. Acceptance of Appointment By Successor.

     (a) In case of the appointment hereunder of a successor trustee with respect to all Notes,
every such successor trustee so appointed shall execute, acknowledge and deliver to the Company and
to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or
removal of the retiring Trustee shall become effective and such successor trustee, without any
further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee; but, on the request of the Company or the successor trustee, such retiring
Trustee shall, upon payment of its charges, execute and deliver an instrument transferring to such
successor trustee all the rights, powers, and trusts of the retiring Trustee and shall duly assign,
transfer and deliver to such successor trustee all property and money held by such retiring Trustee
hereunder. The trustee shall have no liability or responsibility for the action or inaction of any
successor Trustee.

     (b) In case of the appointment hereunder of a successor trustee with respect to some, but not
all of the Notes, the Company, the retiring Trustee and each successor trustee with respect to such
Notes shall execute and deliver an indenture supplemental hereto wherein each successor trustee
shall accept such appointment and which (i) shall contain such provisions as shall be necessary or
desirable to transfer and confirm to, and to vest in, each successor trustee all the
rights, powers, trusts and duties of the retiring Trustee with respect to the Notes to which the
appointment of such successor trustee relates, (ii) shall contain such provisions as shall be
deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Notes as to which the retiring Trustee is not retiring shall
continue to be vested in the retiring Trustee, and (iii) shall add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate the administration
of the trusts hereunder by more than one Trustee, it being understood that nothing herein or in
such supplemental indenture shall constitute such Trustees co-trustees of the same trust, that each
such Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust or
trusts hereunder administered by any other such Trustee and that no Trustee shall be responsible
for any act or failure to act on the part of any other Trustee hereunder; and upon the execution
and delivery of such supplemental indenture the resignation or removal of the retiring Trustee
shall become effective to the extent provided therein, such retiring Trustee shall with respect to
the Notes to which the appointment of such successor trustee relates have no further responsibility
for the exercise of rights and powers or for the performance of the duties and obligations vested
in the Trustee under this Indenture, and each such successor trustee, without any further act, deed
or conveyance, shall become vested with all the rights, powers, trusts and duties of

46

 

the retiring Trustee with respect to the Notes to which the appointment of such successor
trustee relates; but, on request of the Company or any successor trustee, such retiring Trustee
shall duly assign, transfer and deliver to such successor trustee, to the extent contemplated by
such supplemental indenture, the property and money held by such retiring Trustee hereunder with
respect to the Notes to which the appointment of such successor trustee relates.

     (c) Upon request of any such successor trustee, the Company shall execute any and all
instruments for more fully and certainly vesting in and confirming to such successor trustee all
such rights, powers and trusts referred to in paragraph (a) or (b) of this Section 7.11, as the
case may be.

     (d) No successor trustee shall accept its appointment unless at the time of such acceptance
such successor trustee shall be qualified and eligible under this Article 7.

     (e) Upon acceptance of appointment by a successor trustee as provided in this Section 7.11,
the Company shall transmit notice of the succession of such trustee hereunder by mail, first class
postage prepaid, to the Holders, as their names and addresses appear upon the Note Register. If the
Company fails to transmit such notice within ten days after acceptance of appointment by the
successor trustee, the successor trustee shall cause such notice to be transmitted at the expense
of the Company.

     Section 7.12. Merger, Conversion, Consolidation or Succession to Business. Any corporation
into which the Trustee may be merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a
party, or any corporation succeeding to the corporate trust business of the Trustee, shall be the
successor of the Trustee hereunder, provided that such corporation shall be qualified under the
provisions of Section 7.08 and eligible under the provisions of Section 7.09, without the execution
or filing of any paper or any further act on the part of any of the parties hereto, anything herein
to the contrary notwithstanding. In case any Notes shall have been authenticated, but not
delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to
such authenticating Trustee may adopt such authentication and deliver the Notes so authenticated
with the same effect as if such successor Trustee had itself authenticated such Notes.

     Section 7.13. Preferential Collection of Claims Against the Company. The Trustee shall
comply with Section 311(a) of the Trust Indenture Act, excluding any creditor relationship
described in Section 311(b) of the Trust Indenture Act. A Trustee who has resigned or been removed
shall be subject to Section 311(a) of the Trust Indenture Act to the extent included therein.

47

 

ARTICLE 8

Concerning the Holders

     Section 8.01. Evidence of Action by Holders. Whenever in this Indenture it is provided that
the Holders of a majority or specified percentage in aggregate principal amount of the Notes may
take any action (including the making of any demand or request, the giving of any notice, consent
or waiver or the taking of any other action), the fact that at the time of taking any such action
the holders of such majority or specified percentage of such Notes have joined therein may be
evidenced by any instrument or any number of instruments of similar tenor executed by such Holders
of such Notes in person or by agent or proxy appointed in writing.

     If the Company shall solicit from the Holders any request, demand, authorization, direction,
notice, consent, waiver or other action, the Company may, at its option, as evidenced by an
Officer’s Certificate, fix in advance a record date for such Notes for the determination of Holders
entitled to give such request, demand, authorization, direction, notice, consent, waiver or other
action, but the Company shall have no obligation to do so. If such a record date is fixed, such
request, demand, authorization, direction, notice, consent, waiver or other action may be given
before or after the record date, but only the Holders of record at the close of business on the
record date shall be deemed to be Holders for the purposes of determining whether Holders of the
requisite proportion of Outstanding Notes have authorized or agreed or consented to such request,
demand, authorization, direction, notice, consent, waiver or other action, and for that purpose the
Outstanding Notes shall be computed as of the record date; provided, however, that no such
authorization, agreement or consent by such Holders on the record date shall be deemed effective
unless it shall become effective pursuant to the provisions of this Indenture not later than six
months after the record date.

     Section 8.02. Proof of Execution by Holders. Subject to the provisions of Section 7.01,
proof of the execution of any instrument by a Holder (such proof will not require notarization) or
his agent or proxy and proof of the holding by any Person of any of the Notes shall be sufficient
if made in the following manner:

     (a) The fact and date of the execution by any such Person of any instrument may be proved in
any reasonable manner acceptable to the Trustee.

     (b) The ownership of Notes shall be proved by the Note Register or by a certificate of the
Note Registrar thereof.

     The Trustee may require such additional proof of any matter referred to in this Section 8.02
as it shall deem necessary.

48

 

     Section 8.03. Who May be Deemed Owners. Prior to the due presentment for registration of
transfer of any Note, the Company, the Trustee, any paying agent and any Note Registrar may deem
and treat the Person in whose name such Note shall be registered upon the books of the Company as
the absolute owner of such Note (whether or not such Note shall be overdue and notwithstanding any
notice of ownership or writing thereon made by anyone other than the Note Registrar) for the
purpose of receiving payment of or on account of the principal of, premium, if any, and (subject to
Section 2.03) interest on such Note and for all other purposes; and neither the Company nor the
Trustee nor any paying agent nor any Note Registrar shall be affected by any notice to the
contrary.

     Section 8.04. Certain Notes Owned by Company Disregarded. In determining whether the Holders
of the requisite aggregate principal amount of Notes have concurred in any direction, consent or
waiver under this Indenture, the Notes that are owned by the Company or any other obligor on the
Notes or by any Affiliate of the Company or any other obligor on the Notes shall be disregarded and
deemed not to be Outstanding for the purpose of any such determination, except that for the purpose
of determining whether the Trustee shall be protected in relying on any such direction, consent or
waiver, only Notes that the Trustee actually knows are so owned shall be so disregarded. The Notes
so owned that have been pledged in good faith may be regarded as Outstanding for the purposes of
this Section 8.04, if the pledgee shall establish to the satisfaction of the Trustee the pledgee’s
right so to act with respect to such Notes and that the pledgee is not a Person directly or
indirectly controlling or controlled by or under direct or indirect common control with the Company
or any such other obligor. In case of a dispute as to such right, any decision by the Trustee taken
upon the advice of counsel shall be full protection to the Trustee.

     Section 8.05. Actions Binding on Future Holders. At any time prior to (but not after) the
evidencing to the Trustee, as provided in Section 8.01, of the taking of any action by the Holders
of the majority or percentage in aggregate principal amount of the Notes specified in this
Indenture in connection with such action, any Holder of a Note that is shown by the evidence to be
included in the Notes the Holders of which have consented to such action may, by filing written
notice with the Trustee, and upon proof of holding as provided in Section 8.02, revoke such action
so far as concerns such Note. Except as aforesaid any such action taken by the Holder of any Note
shall be conclusive and binding upon such Holder and upon all future Holders and owners of such
Note, and of any Note issued in exchange therefor, on registration of transfer thereof or in place
thereof, irrespective of whether or not any notation in regard thereto is made upon such Note. Any
action taken by the Holders of the majority or percentage in aggregate principal amount of the
Notes specified in this Indenture in connection with such action shall be conclusively binding upon
the Company, the Trustee and the Holders.

49

 

ARTICLE 9

Amendments; Supplements And Waivers

     Section 9.01. Without Consent of Holders. The Company and the Trustee may amend or
supplement this Indenture or the Notes without notice to or consent of any Holder of a Note for any
of the following purposes:

     (a) to add to the covenants of the Company for the benefit of the Holders of Notes;

     (b) to surrender any right or power herein conferred upon the Company;

     (c) to make provision with respect to the conversion rights of Holders of Notes pursuant to
Section 13.10 hereof;

     (d) to provide for the assumption of the Company’s obligations to the Holders of Notes in the
case of a merger, consolidation, conveyance, transfer or lease pursuant to Article 10 hereof;

     (e) to increase the Conversion Rate; provided, however, that such increase in the Conversion
Rate shall not adversely affect the interests of the Holders of Notes in any material respect;

     (f) to comply with the requirements of the Commission in order to effect or maintain the
qualification of this Indenture under the Trust Indenture Act;

     (g) to cure any ambiguity, correct or supplement any provision herein which may be
inconsistent with any other provision herein or which is otherwise defective; provided, that such
action pursuant to this clause (g) does not adversely affect the interests of the Holders of Notes
in any material respect;

     (h) to add or modify any other provisions which the Company and the Trustee may deem necessary
or desirable and which shall not adversely affect the interests of the Holders of Notes in any
material respect; or

     (i) conform as necessary the Indenture and the form or terms of the Notes to the “Description
of Notes” as set forth in the Offering Memorandum.

     After an amendment, supplement or waiver under this Section 9.01 becomes effective, the
Company, or, at the written request of the Company, the Trustee, shall 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.

50

 

     Section 9.02. With Consent of Holders. Except as provided below in this Section 9.02, this
Indenture or the Notes may be amended or supplemented, and noncompliance by the Company in any
particular instance with any provision of this Indenture or the Notes may be waived, in each case
(i) with the written consent of the Holders of at least a majority in aggregate principal amount of
the Notes then Outstanding or (ii) by the adoption of a resolution, at a meeting of Holders of the
Notes then Outstanding at which a quorum is present, by the Holders of a majority in aggregate
principal amount of the Outstanding Notes represented at such meeting.

     Without the written consent or the affirmative vote of each Holder of an affected Note, an
amendment, supplement or waiver to this Indenture or the Notes may not:

     (a) change the stated maturity of the principal of, or the time of payment of any installment
of interest on, any Note;

     (b) reduce the principal amount of any Note;

     (c) reduce the interest rate or interest on any Note;

     (d) change the currency of payment of principal of, premium, if any, or interest on any Note;

     (e) impair the right to institute suit for the enforcement of any payment with respect to, or
the conversion of, any Note;

     (f) except as otherwise permitted by Section 13.10 hereof, adversely affect the right to
convert any Note as provided in Article 13 hereof;

     (g) adversely affect the right of Holders to require the Company to purchase the Notes in the
event of a Fundamental Change;

     (h) modify any of the provisions of this Section 9.02, Section 6.04 or Section 6.12, except to
increase any percentage contained herein or therein or to provide that certain other provisions of
this Indenture cannot be modified or waived without the consent of the Holder of each Note affected
thereby; or

     (i) reduce the percentage in aggregate principal amount of the Outstanding Notes required for
the adoption of a resolution or the quorum required at any meeting of Holders of Notes at which a
resolution is adopted.

     It shall not be necessary for the consent of Holders of Notes under this Section 9.02 to
approve the particular form of any proposed modification, amendment or waiver, but it shall be
sufficient if such act shall approve the substance thereof.

51

 

     After an amendment, supplement or waiver under this Section 9.02 becomes effective, the
Company, or, at the written request of the Company, the Trustee, shall 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 9.03. Effect of Supplemental Indentures. Upon the execution of any supplemental
indenture pursuant to the provisions of this Article 9 or Section 10.01 this Indenture shall be and
be deemed to be modified and amended in accordance therewith and the respective rights, limitations
of rights, obligations, duties and immunities under this Indenture of the Trustee, the Company and
the Holders of Notes affected thereby shall thereafter be determined, exercised and enforced
hereunder subject in all respects to such modifications and amendments, and all the terms and
conditions of any such supplemental indenture shall be and be deemed to be part of the terms and
conditions of this Indenture for any and all purposes.

     Section 9.04. Notes Affected by Supplemental Indentures. Notes affected by a supplemental
indenture, authenticated and delivered after the execution of such supplemental indenture pursuant
to the provisions of this Article 9 or Section 10.01, may bear a notation in form approved by the
Company, provided such form meets the requirements of any securities exchange upon which such Notes
may be listed, as to any matter provided for in such supplemental indenture. If the Company shall
so determine, new securities so modified as to conform, in the opinion of the Board of Directors,
to any modification of this Indenture contained in any such supplemental indenture may be prepared
by the Company, authenticated by the Trustee and delivered in exchange for the Notes then
Outstanding.

     Section 9.05. Execution of Supplemental Indentures. Upon the request of the Company,
accompanied by its Board Resolutions authorizing the execution of any such supplemental indenture,
and upon the filing with the Trustee of evidence of the consent of Holders required to consent
thereto as aforesaid (if such consent is required pursuant to this Article), the Trustee shall join
with the Company in the execution of such supplemental indenture unless such supplemental indenture
affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which
case the Trustee may in its discretion but shall not be obligated to enter into such supplemental
indenture. The Trustee, subject to the provisions of Section 7.01, will be entitled to receive and
will be fully protected in relying upon an Officer’s Certificate and an Opinion of Counsel stating
that any supplemental indenture executed pursuant to this Article is authorized or permitted by,
and conforms to, the terms of this Article 9, constitutes a valid, binding and legal obligation,
enforceable against the Company (subject to

52

 

customary qualifications) and that it is proper for the Trustee under the provisions of this
Article 9 to join in the execution thereof.

     Promptly after the execution by the Company and the Trustee of any supplemental indenture
pursuant to the provisions of this Section, the Company shall transmit by mail, first class postage
prepaid, a notice, setting forth in general terms the substance of such supplemental indenture, to
the Holders of all Notes affected thereby as their names and addresses appear upon the Note
Register. 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 supplemental indenture.

ARTICLE 10

Consolidation; Merger; Conveyance; Transfer Or Lease

     Section 10.01. Company May Consolidate, Etc., Only on Certain Terms. The Company may not,
without the consent of the Holders, consolidate with, merge into or convey, transfer or lease all
or substantially all of the property and assets of the Company and its Subsidiaries, taken as a
whole, to another Person unless:

     (a) either (1) the Company shall be the resulting or surviving corporation or (2) the Person
(if other than the Company) formed by such consolidation or into which the Company is merged, or
the Person which acquires by transfer or lease all or substantially all of the property and assets
of the Company, shall (i) be a corporation incorporated and existing under the laws of the United
States of America or any State thereof or the District of Columbia and (ii) expressly assume, by an
indenture supplemental hereto, executed and delivered to the Trustee, in form reasonably
satisfactory to the Trustee, the obligations of the Company under the Notes and this Indenture;

     (b) after 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 occurred and be
continuing; and

     (c) 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, conveyance, transfer or lease,
delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that such
consolidation, merger, conveyance, transfer or lease complies with this Article 10 and, if a
supplemental indenture is required in connection with such transaction, such supplemental indenture
complies with this Article 10, and that all conditions precedent herein provided for relating to
such transaction have been complied with.

53

 

     Section 10.02. Successor Substituted. Upon any consolidation of the Company with, or merger
of the Company into, any other Person or any conveyance, transfer or lease of all or substantially
all of the properties and assets of the Company and its Subsidiaries, taken as a whole, in
accordance with Section 10.01, the successor Person formed by such consolidation or into which the
Company is merged or to which such conveyance, transfer or lease is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under this Indenture with
the same effect as if such successor Person had been named as the Company herein, and thereafter,
except in the case of a lease, and except for obligations the predecessor Person may have under a
supplemental indenture, the predecessor Person shall be relieved of all obligations and covenants
under the Indenture and the Notes.

ARTICLE 11

Immunity of Incorporators, Stockholders, Officers and Directors

     Section 11.01. No Recourse. No recourse under or upon any obligation, covenant or agreement
of this Indenture, or of the Notes, or for any claim based thereon or otherwise in respect thereof,
shall be had against any incorporator, stockholder, officer or director, past, present or future as
such, of the Company or of any predecessor or successor corporation, either directly or through the
Company or any such predecessor or successor corporation, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being
expressly understood that this Indenture and the obligations issued hereunder are solely corporate
obligations, and that no such personal liability whatever shall attach to, or is or shall be
incurred by, the incorporators, stockholders, officers or directors as such, of the Company or of
any predecessor or successor corporation, or any of them, because of the creation of the
indebtedness hereby authorized, or under or by reason of the obligations, covenants or agreements
contained in this Indenture or in any of the Notes or implied therefrom; and that any and all such
personal liability of every name and nature, either at common law or in equity or by constitution
or statute, of, and any and all such rights and claims against, every such incorporator,
stockholder, officer or director as such, because of the creation of the indebtedness hereby
authorized, or under or by reason of the obligations, covenants or agreements contained in this
Indenture or in any of the Notes or implied therefrom, are hereby expressly waived and released as
a condition of, and as a consideration for, the execution of this Indenture and the issuance of the
Notes.

54

 

ARTICLE 12

Additional Interest

     Section 12.01. Additional Interest. (a) If, at any time during the six-month period
beginning on, and including, the date that is six months after the last date of original issuance
of the Notes and ending on the date that is one year after the last date of the original issuance
of the Notes, the Company either (i) fails to timely file any periodic report that the Company is
required to file with the Commission under Article 13 or 15(d) of the Exchange Act, as applicable
(other than reports on Form 8-K), and such failure continues for 14 days in the aggregate, or (ii)
the Notes are not otherwise freely tradable pursuant to Rule 144 by Holders of the Notes other than
the Company’s Affiliates, or under the terms of this Indenture or the Notes, then in either case
(an “Additional Interest Event”), the Company shall pay additional interest on the Notes (the
“Additional Interest”). Such Additional Interest will accrue on the Notes at the rate of 0.25% per
annum of the principal amount of Notes Outstanding for each day during the first 90-day period (or
portion thereof) for which an Additional Interest Event has occurred and is continuing, which rate
will increase by an additional 0.25% per annum of the principal amount of the Notes for each
subsequent 90-day period (or portion thereof), up to a maximum of 0.50% of the principal amount of
the Notes. Additional Interest shall be payable in arrears on each Interest Payment Date following
accrual in the same manner as regular interest on the Notes.

     (b) Unless

     (i) the restrictive legend on the Notes has not been removed, or

     (ii) the Notes are not freely tradable pursuant to Rule 144 by Holders other than the
Company’s Affiliates (without restrictions pursuant to U.S. securities law or the terms of
this Indenture or the Notes),

on or after the 365th day after the last date of original issuance of the Notes offered hereby, an
Additional Interest Event would be deemed to have occurred and the Company shall pay Additional
Interest on the Notes at an annual rate equal to 0.25% of the aggregate principal amount of the
Notes for each day during the first 90-day period (or portion thereof) for which such Additional
Interest Event is continuing, which rate will increase by an additional 0.25% per annum of the
principal amount of the Notes for each subsequent 90-day period (or portion thereof), up to a
maximum of 0.50% of the principal amount of the Notes; provided that the Company shall not be
required to pay Additional Interest on the Notes for failure to remove the restrictive legend on
the Notes unless the Company has received a request to do so by a Holder, any Initial Purchaser or
the Trustee on or after the 335th day after the last Issue Date of the original issuance of the
Notes, except that if the Company receives such a request on or after the

55

 

5th Business Day immediately preceding such 365th day and the restrictive legend on the Notes has
not been removed by the close of business on the 5th Business Day thereafter, Additional Interest
on the Notes will accrue from such 365th day.

     (c) Notwithstanding the foregoing, the Company shall not be required to pay Additional
Interest on any date if (i) the Company has filed a shelf registration statement for the resale of
the Notes and any shares of Common Stock issued upon conversion of the Notes, (ii) such shelf
registration statement is effective and usable by Holders of the Notes identified therein as
selling securityholders for the resale of the Notes and any shares of Common Stock issued upon
conversion of the Notes, and (iii) the Holders may register the resale of their Notes under such
shelf registration statement on terms customary for the resale of convertible securities offered in
reliance on Rule 144A.

     (d) Under no circumstances will the combined rate of Additional Interest or Special Interest
exceed 1.00% per annum.

     (e) The Company shall provide written notice to the Trustee prior to paying any Additional
Interest.

ARTICLE 13

Conversion of Notes

     Section 13.01. Conversion Privilege and Conversion Rate. (a) The conversion rights pursuant
to this Article 13 shall commence on the Issue Date of the Notes and expire at the close of
business on the Business Day immediately preceding the Maturity Date unless previously redeemed or
repurchased, subject to the provisions of this Indenture and, in the case of conversion of any
Global Note, to any Applicable Procedures; provided, however, that if the Company has elected to
redeem the Notes pursuant to Article 14 hereof, Holders may convert their Notes only until the
close of business on the Business Day prior to the Redemption Date unless the Company fails to pay
the Redemption Price in which case the conversion right shall terminate at the close of business on
the Business Day prior to the date such failure is cured and such Note is redeemed. If a Note is
submitted or presented for purchase pursuant to Article 15, subject to the last paragraph of
Section 13.02(b), such conversion right shall terminate at the close of business on the Business
Day prior to the Fundamental Change Purchase Date for such Note (unless the Company shall fail to
make the Fundamental Change Purchase Price payment when due in accordance with Article 15, in which
case the conversion right shall terminate at the close of business on the Business Day prior to the
date such failure is cured and such Note is repurchased).

56

 

     (b) Provisions of this Indenture that apply to conversion of all of a Note also apply to
conversion of a portion of a Note.

     (c) A Holder of Notes is not entitled to any rights of a holder of Common Stock until such
Holder has converted its Notes into Common Stock, and only to the extent such Notes are deemed to
have been converted into Common Stock pursuant to this Article 13.

     (d) The Conversion Rate shall be adjusted in certain instances as provided in Section 13.01(e)
and Section 13.06.

     (e) If a Make-Whole Fundamental Change shall have occurred, the Company shall calculate and
pay a “Fundamental Change Make-Whole Premium” to the Holders of the Notes who convert their Notes
during the period beginning the date of the Make-Whole Fundamental Change Notice until the close of
business on the tenth Business Day immediately following the Make-Whole Fundamental Change
Effective Date by increasing the Conversion Rate for such Notes. The Fundamental Make-Whole Change
Premium will be in addition to, and not in substitution for, any cash, securities or other assets
otherwise due to Holders of Notes upon conversion. The number of additional shares of Common Stock
per $1,000 principal amount of Notes constituting the Fundamental Change Make-Whole Premium shall
be determined by reference to the table set forth on Schedule A hereto, based on the Make-Whole
Fundamental Change Effective Date and the Stock Price; provided that if the Stock Price or
Make-Whole Fundamental Change Effective Date are not set forth on the table: (i) if the actual
Stock Price on the Make-Whole Fundamental Change Effective Date is between two Stock Prices on the
table or the actual Fundamental Change Effective Date is between two Make-Whole Fundamental Change
Effective Dates on the table, the Fundamental Change Make-Whole Premium will be determined by a
straight-line interpolation between the Fundamental Change Make-Whole Premiums set forth for the
two Stock Prices and the two Make-Whole Fundamental Change Effective Dates on the table based on a
365-day year, as applicable, (ii) if the Stock Price on the Fundamental Change Effective Date
exceeds $50.00 per share, subject to adjustment as set forth herein, no Fundamental Change
Make-Whole Premium will be paid, and (iii) if the Stock Price on the Make-Whole Fundamental Change
Effective Date is less than $5.97 per share, subject to adjustment as set forth herein, no
Fundamental Change Make-Whole Premium will be paid. If holders of Common Stock receive only cash in
the Make-Whole Fundamental Change, the Stock Price shall be the cash amount paid per share of
Common Stock in connection with such Make-Whole Fundamental Change. Otherwise, the Stock Price
shall be equal to the average Last Reported Sale Price of the Common Stock over the 10 Trading Day
period ending on the Trading Day immediately preceding, and excluding, the applicable Fundamental
Change Effective Date. The Company, or, at the request of the Company, the Trustee, shall mail
written notice of the anticipated effective date of any Make-Whole Fundamental Change

57

 

to the Holders (with a copy to the Trustee if applicable) as practicable following the date
the Company publicly announces such Make-Whole Fundamental Change, but in no event less than 20
days prior to the anticipated Make-Whole Fundamental Change Effective Date (the “Make-Whole
Fundamental Change Notice”). At the Company’s request, the Trustee shall give such Make-Whole
Fundamental Change Notice in the Company’s name and at the Company’s request; provided that, unless
otherwise agreed by the Trustee, the Company makes such request at least three (3) Business Days
prior to the date of such notice.

     The Stock Prices set forth in the first column of the table on Schedule A will be adjusted as
of any date on which the Conversion Rate of the Notes is adjusted other than an adjustment pursuant
to the Fundamental Change Make-Whole Premium described above. The adjusted Stock Prices will equal
the Stock Prices applicable immediately prior to such adjustment multiplied by a fraction, the
numerator of which is the Conversion Rate immediately prior to the adjustment giving rise to the
Stock Price adjustment and the denominator of which is the Conversion Rate as so adjusted. The
number of additional shares set forth in the table above will be adjusted in the same manner as the
Conversion Rate as set forth in Section 13.06 hereof, other than as a result of an adjustment to
the Conversion Rate by adding the Fundamental Change Make-Whole Premium as described above.

     Notwithstanding the foregoing, in no event will the Conversion Rate exceed 167.5041 per $1,000
principal amount as a result of this Section 13.01, subject to proportional adjustment in the same
manner as the Conversion Rate as set forth in Section 13.06 hereof.

     The Fundamental Change Make-Whole Premium shall be delivered upon the later of the settlement
date for the conversion and promptly following the Fundamental Change Effective Date.

     If a Holder converts its Notes prior to the Fundamental Change Effective Date, and the
Make-Whole Fundamental Change does not occur, such Holder shall not be entitled to the Fundamental
Change Make-Whole Premium in connection with such conversion.

     (f) By delivering the number of shares of Common Stock issuable on conversion to the Trustee,
plus a cash payment for any fractional share, the Company will be deemed to have satisfied its
obligation to pay the principal amount of the Notes so converted and its obligation to pay accrued
and unpaid interest attributable to the period from the most recent Interest Payment Date through
the Conversion Date (which amount will be deemed satisfied and extinguished).

58

 

     Section 13.02. Conversion Procedure. (a) To convert a Note in certificated form, a Holder
must (1) complete and manually sign the Notice of Conversion on the back of the Note, or facsimile
of such Notice of Conversion, and deliver such Notice of Conversion to the Conversion Agent, which
shall become irrevocable upon receipt by the Conversion Agent, (2) surrender the Note to the
Conversion Agent, (3) furnish appropriate endorsements and transfer documents if required by the
Note Registrar or the Conversion Agent, (4) pay an amount equal to the interest payable on the next
Interest Payment Date to which the Holder is not entitled as required by Section 13.02(c) and (5)
pay all transfer or similar taxes, if required pursuant to Section 13.04. Anything herein to the
contrary notwithstanding, in the case of Global Notes, Notices of Conversion may be delivered and
such Notes may be surrendered for conversion in accordance with clauses (3), (4) and (5) of this
Section 13.02(a) and the Applicable Procedures as in effect from time to time. The date on which
the Holder satisfies all the requirements set forth in this Section 13.02(a) is the “Conversion
Date.”

     (b) Each conversion shall be deemed to have been effected as to any Notes surrendered for
conversion on the Conversion Date and the person in whose name the shares of Common Stock shall be
issuable upon conversion shall be deemed to be the holder of record of such Common Stock as of the
close of business on such Conversion Date, and the Company shall deliver the consideration due in
respect of any conversion on the third Business Day immediately following the relevant Conversion
Date; provided, however, that no surrender of a Note on any Conversion Date when the stock transfer
books of the Company shall be closed shall be effective to constitute the person or persons
entitled to receive the shares of Common Stock upon conversion as the record holder or holders of
such shares of Common Stock on such date, but such surrender shall be effective to constitute the
person or persons entitled to receive such shares of Common Stock as the record holder or holders
thereof for all purposes at the close of business on the next succeeding day on which such stock
transfer books are open. Upon conversion of a Note, such person shall no longer be the Holder of
such Note. Except as set forth in this Indenture, no payment or adjustment will be made for
dividends or distributions declared or made on shares of Common Stock issued upon conversion of a
Note prior to the issuance of such shares.

     A Holder that has delivered a Fundamental Change Purchase Notice pursuant to Section 15.01
with respect to a Note may not surrender such Note for conversion until such Holder has withdrawn
the Fundamental Change Purchase Notice in accordance with Section 15.01(c).

     (c) Holders of Notes surrendered for conversion (in whole or in part) during the period from
the close of business on any Regular Record Date to the open of business on the next succeeding
Interest Payment Date will receive the semiannual interest payable on the principal amount of such
Notes being

59

 

surrendered for conversion on the corresponding Interest Payment Date notwithstanding the
conversion. Upon surrender of any such Notes for conversion, such Notes shall also be accompanied
by payment in funds to the Conversion Agent acceptable to the Company of an amount equal to the
interest payable on such corresponding Interest Payment Date (but excluding any overdue interest on
the principal amount of such Note so converted if any overdue interest exists at the time such
Holder surrenders such Note for conversion); provided, however, that no such payment need be made
(i) if the Company has specified a Redemption Date that is after such Regular Record Date and on or
prior to the next succeeding Interest Payment Date, (ii) if the Company has specified a Fundamental
Change Purchase Date that is after such Regular Record Date and on or prior to the next succeeding
Interest Payment Date, or (iii) if conversion occurs after the last Regular Record Date prior to
the Maturity Date,. Except as otherwise provided in this Section 13.02(c) and Section 14.01(c), no
payment or adjustment will be made for accrued interest on a converted Note and any such accrued
interest shall be deemed satisfied and extinguished.

     (d) Subject to Section 13.02(c), nothing in this Section 13.02 shall affect the right of a
Holder in whose name any Note is registered at the close of business on a Regular Record Date to
receive the interest payable on such Note on the related Interest Payment Date in accordance with
the terms of this Indenture and the Notes. If a Holder converts more than one Note at the same
time, the number of shares of Common Stock issuable upon the conversion (and the amount of any cash
in lieu of fractional shares pursuant to Section 13.03) shall be based on the aggregate principal
amount of all Notes so converted.

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

     Section 13.03. Fractional Shares. No fractional shares of Common Stock shall be issued upon
conversion of any Note or Notes. If more than one Note shall be surrendered for conversion at one
time by the same Holder, the number of full shares which shall be issued upon conversion thereof
shall be computed on the basis of the aggregate principal amount of the Notes (or specified
portions thereof) so surrendered. Instead of any fractional share of Common Stock which would
otherwise be issued upon conversion of any Note or Notes (or specified portions thereof), the
Company shall pay a cash adjustment in respect of such fraction (calculated to the nearest
one-100th of a share) in an amount equal to the same

60

 

fraction of the Last Reported Sale Price of the Common Stock as of the Trading Day preceding
the Conversion Date.

     Section 13.04. Taxes on Conversion. Except as provided in the next sentence, the Company
will pay any and all documentary, stamp or similar issue or transfer tax due and duties on the
issuance of shares of Common Stock upon conversion of Notes pursuant hereto. A Holder delivering a
Note for conversion shall be liable for and will be required to pay any tax or duty which may be
payable in respect of any transfer involved in the issue and delivery of shares of Common Stock in
a name other than that of the Holder of the Note or Notes to be converted, and no such issue or
delivery shall be made unless the Person requesting such issue has paid to the Company the amount
of any such tax or duty, or has established to the satisfaction of the Company that such tax or
duty has been paid.

     Section 13.05. Company to Provide Common Stock. (a) The Company shall, prior to issuance of
any Notes hereunder, and from time to time as may be necessary, reserve, out of its authorized but
unissued Common Stock, a sufficient number of shares of Common Stock to permit the conversion of
all Outstanding Notes into shares of Common Stock.

     (b) All shares of Common Stock delivered upon conversion of the Notes shall be newly issued
shares, 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 as the result of any action
by the Company.

     Section 13.06. Adjustment of Conversion Rate. The Conversion Rate shall be adjusted from
time to time by the Company as follows:

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

where,

	 	 	 	 	 

	CR0

	 	=
	 	the applicable Conversion Rate in effect
immediately prior to the open of business on the
Ex-Dividend Date for such dividend or
distribution, or immediately prior to the open of
business on the effective date of such share split
or share combination, as the case may be;

61

 

	 	 	 	 	 

	CR

	 	=
	 	the applicable Conversion Rate in effect
immediately after the open of business on the
Ex-Dividend Date for such dividend or
distribution, or immediately after the open of
business on the effective date of such share split
or share combination, as the case may be;
	 
	 	 	 	 
	OS0

	 	=
	 	the number of shares of Common Stock outstanding
immediately prior to such dividend, distribution,
share split or share combination, as the case may
be; and
	 
	 	 	 	 
	OS

	 	=
	 	the number of shares of Common Stock outstanding
immediately after giving effect to such dividend,
distribution, share split or share combination, as
the case may be.

     Any adjustments made pursuant to this Section 13.06(a) shall become effective immediately on
or after (x) the open of business on the Ex-Dividend Date for such dividend or distribution or (y)
the effective date of such split or combination, as applicable. If any dividend or distribution
described in this Section 13.06(a) is declared but not so paid or made, the new Conversion Rate
shall again be adjusted to the Conversion Rate that would then be in effect if such dividend or
distribution had not been declared.

     (b) If the Company distributes to all holders of Common Stock any rights or warrants entitling
them to purchase, for a period of not more than 45 days after the Ex-Dividend Date for the
distribution, shares of Common Stock at a price per share less than the average of the Last
Reported Sale Prices of the Common Stock for the 10 consecutive Trading-Day period ending on the
Trading Day immediately preceding the declaration date for such distribution, the Conversion Rate
will be adjusted based on the following formula:

     where,

	 	 	 	 	 

	CR0

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

	 	=
	 	the new Conversion Rate in effect immediately
after the open of business on the Ex-Dividend
Date for such distribution;
	 
	 	 	 	 
	OS0

	 	=
	 	the number of shares of Common Stock
outstanding immediately prior to the open of
business on the Ex-Dividend Date for such
distribution;

62

 

	 	 	 	 	 

	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 Last Reported Sale Prices of the Common
Stock over the 10 consecutive Trading-Day
period ending on the Trading Day immediately
preceding the declaration date for such
distribution.

     For purposes of this Section 13.06(b), 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
Last Reported Sale Prices of the Common Stock for the applicable 10 consecutive Trading-Day period,
there shall be taken into account any consideration received by the Company for such rights or
warrants and any amount payable on exercise thereof, with the value of such consideration if other
than cash, to be determined by the Board of Directors. If any right or warrant described in this
Section 13.06(b) is not exercised prior to the expiration of the exercisability thereof, the new
Conversion Rate shall be readjusted to the Conversion Rate that would then be in effect if such
right or warrant had not been so issued. Any adjustment made pursuant to this Section 13.06(b)
shall become effective immediately after the Ex-Dividend Date for the applicable distribution.

     (c) If the Company distributes shares of its Capital Stock, evidences of its indebtedness or
other assets or property of the Company to all holders of the Common Stock, excluding

     (i) dividends or distributions (including share splits) as to which an adjustment is
effected in Section 13.06(a) or Section 13.06(b);

     (ii) dividends or distributions covered by Section 13.06(d);

     (iii) dividends or distributions that constitute Reference Property following an
event pursuant to Section 13.10; and

     (iv) Spin-Offs to which the provisions set forth below in this Section 13.06(c) shall
apply,

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

63

 

where,

	 	 	 	 	 

	CR0

	 	=
	 	the applicable Conversion Rate in effect
immediately prior to the open of business on the
Ex-Dividend Date for such distribution;
	 
	 	 	 	 
	CR

	 	=
	 	the applicable Conversion Rate in effect
immediately after the open of business on the
Ex-Dividend Date for such distribution;
	 
	 	 	 	 
	SP0

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

	 	=
	 	the fair market value (as determined in good faith
by the Board of Directors) of the shares of
Capital Stock, evidences of indebtedness, assets
or property distributed with respect to each
outstanding share of Common Stock as of the open
of business on the Ex-Dividend Date for such
distribution.

     If the then fair market value of the portion of the shares of Capital Stock, evidences of
indebtedness or other assets or property so distributed applicable to one share of Common Stock is
equal to or greater than the average of the Last Reported Sales 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, in lieu of the foregoing adjustment, adequate provisions shall be made
so that each Holder of a Note shall have the right to receive on conversion in respect of each Note
held by such Holder, in addition to any amounts to which such Holder is entitled to receive, the
amount and kind of securities and assets such Holder would have received had such Holder already
owned a number of shares of Common Stock equal to the applicable Conversion Rate immediately prior
to the open of business on the Ex-Dividend Date for the distribution of the securities or assets.

     With respect to an adjustment pursuant to this Section 13.06(c) where there has been a payment
of a dividend or other distribution on the Common Stock of shares of the Capital Stock of any class
or series, or similar equity interest, of or relating to a Subsidiary or other business unit that
are, or, when issued, will be, traded or quoted on any national or regional securities exchange or
other market (a “Spin-Off”), the applicable Conversion Rate will instead be adjusted based on the
following formula:

where,

64

 

	 	 	 	 	 

	CR0

	 	=
	 	the applicable Conversion Rate in effect
immediately prior to the tenth Trading Day
immediately following the effective date for such
Spin-Off;
	 
	 	 	 	 
	CR

	 	=
	 	the applicable Conversion Rate in effect
immediately after the open of business on the
tenth Trading Day immediately following the
effective date for such Spin-Off;
	 
	 	 	 	 
	FMV

	 	=
	 	the average of the Last Reported Sale Prices of
the Capital Stock or similar equity interest
distributed to holders of Common Stock applicable
to one share of Common Stock over the first 10
consecutive Trading-Day period immediately
following the effective date for such Spin-Off
(such period, the “Valuation Period”); and
	 
	 	 	 	 
	MP0

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

     Such adjustment shall occur immediately after the tenth Trading Day immediately following, and
including, the effective date of such Spin-Off; provided that, for purposes of determining the
Conversion Rate in respect of any conversion during the 10 Trading Days following the effective
date of any Spin-Off, references within this Section 13.06(c) related to “Spin-Offs” to 10 Trading
Days shall be deemed replaced with such lesser number of Trading Days as have elapsed between the
effective date of such Spin-Off and the relevant Conversion Date.

     If any such dividend or distribution described in this Section 13.06(c) is declared but not
paid or made, the new Conversion Rate shall be readjusted to be the Conversion Rate that would then
be in effect if such dividend or distribution had not been declared.

     (d) If any cash dividend or distribution is made to all holders of Common Stock, the
Conversion Rate will be adjusted based on the following formula:

where,

	 	 	 	 	 

	CR0

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

65

 

	 	 	 	 	 

	CR

	 	=
	 	the applicable Conversion Rate in effect
immediately after the open of business on the
Ex-Dividend Date for such distribution;
	 
	 	 	 	 
	SP0

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

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

     An adjustment to the Conversion Rate made pursuant to this Section 13.06(d) shall become
effective immediately after the open of business on the Ex-Dividend Date for the applicable
dividend or distribution. If any dividend or distribution described in this Section 13.06(d) is
declared but not so paid or made, the new Conversion Rate shall be readjusted to the Conversion
Rate that would then be in effect if such dividend or distribution had not been declared.

     If the amount in cash per share of Common Stock so paid or distributed is equal to or greater
than the average of the Last Reported Sales 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
cash dividend or distribution, in lieu of the foregoing adjustment, adequate provisions shall be
made so that each Holder of a Note shall have the right to receive on conversion in respect of each
Note held by such Holder, in addition to any amounts to which such Holder is entitled to receive,
the amount in cash such Holder would have received had such Holder already owned a number of shares
of Common Stock equal to the applicable Conversion Rate immediately prior to the record date for
such cash dividend or distribution.

     (e) If the Company or any of its Subsidiaries makes a payment in respect of a tender or
exchange offer for Common Stock (other than tender offers or exchange offers not subject to Rule
13e-4 of the Exchange Act or odd lot tender offers), to the extent that the cash and value of any
other consideration included in the payment per share of Common Stock exceeds the Last Reported
Sale Price of the Common Stock on the Trading Day next succeeding the last date on which tenders or
exchanges may be made pursuant to such tender or exchange offer (the “Expiration Date”), the
Conversion Rate shall be increased based on the following formula:

where,

66

 

	 	 	 	 	 

	CR0

	 	=
	 	the applicable Conversion Rate in effect
immediately prior to the open of business on the
Trading Day next succeeding the Expiration Date;
	 
	 	 	 	 
	CR

	 	=
	 	the applicable Conversion Rate in effect
immediately after the open of business on the
Trading Day next succeeding the Expiration Date;
	 
	 	 	 	 
	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 offer or exchange offer;
	 
	 	 	 	 
	OS0

	 	=
	 	the number of shares of Common Stock outstanding
immediately prior to time (the “Expiration Time”)
such tender or exchange offer expires (prior to
giving effect to such tender offer or exchange
offer);
	 
	 	 	 	 
	OS

	 	=
	 	the number of shares of Common Stock outstanding
immediately after the expiration time (after
giving effect to such tender offer or exchange
offer); and
	 
	 	 	 	 
	SP

	 	=
	 	the average of the Last Reported Sale Prices of
Common Stock over the 10 consecutive Trading-Day
period commencing on, and including, the Trading
Day next succeeding the Expiration Date.

     The adjustment to the Conversion Rate under this Section 13.06(e) shall become effective
immediately following the tenth Trading Day next succeeding the date such tender offer or exchange
offer expires; provided that, for purposes of determining the Conversion Rate, in respect of any
conversion during the 10 Trading Days following the date that any tender or exchange offer expires,
references within this Section 13.06(e) to 10 Trading Days shall be deemed replaced with such
lesser number of Trading Days as have elapsed between the date such tender or exchange offer
expires and the relevant Conversion Date. If the Company or one of its Subsidiaries is obligated to
purchase Common Stock pursuant to any such tender or exchange offer but are permanently prevented
by applicable law from effecting any such purchase or all such purchases are rescinded, the new
Conversion Rate shall be readjusted to be the Conversion Rate that would be in effect if such
tender or exchange offer had not been made.

     (f) Notwithstanding the foregoing, if a Conversion Rate adjustment becomes effective on any
Ex-Dividend Date pursuant to Section 13.06(a) through Section 13.06(e), and a Holder that has
converted its Notes on or after such Ex-Dividend Date and on or prior to the related record date
would be treated as the record holder of the Common Stock as of the related Conversion Date based
on an adjusted Conversion Rate for such Ex-Dividend Date, then, notwithstanding

67

 

Section 13.06(a) through Section 13.06(e), the Conversion Rate adjustment relating to such
Ex-Dividend Date will not be made for such converting Holder. Instead, such Holder shall be treated
as if such Holder were the record owner of the Common Stock on an unadjusted basis and participate
in the related dividend, distribution or other event giving rise to such adjustment.

     Section 13.07. When No Adjustment is Required. (a) No adjustment in the Conversion Rate
shall be required unless such adjustment would require an increase or decrease of at least 1% in
the Conversion Rate as last adjusted; provided, however, that any adjustments which would be
required to be made but for this Section 13.07(a) shall be carried forward and taken into account
in any subsequent adjustment and any carry forward amount shall be paid to the Holder upon
conversion regardless of the 1% threshold. All calculations under this Article 13 shall be made to
the nearest cent or to the nearest one-hundredth of a share.

     (b) Without limiting the foregoing provisions of Section 13.06, no adjustment will be made
thereunder, nor shall an adjustment be made to the ability of a Holder to convert, for any
distribution described therein if the Holder will otherwise participate in the distribution without
conversion of such Holder’s Notes as if such Holder held a number of shares of Common Stock equal
to the applicable Conversion Rate, multiplied by the principal amount (expressed in thousands) of
Notes held by such Holder, without having to convert its Notes. Further, if the application of the
foregoing formulas in Section 13.06 would result in a decrease in the Conversion Rate, no
adjustment to the Conversion Rate will be made (except on account of share combinations).

     (c) No adjustment to the Conversion Rate will be made unless as specifically set forth in
Section 13.06 and Section 13.01(e). Without limiting the foregoing, no adjustment to the Conversion
Rate need be made:

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

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

     (iii) upon the issuance of any shares of Common Stock pursuant to any option,
warrant, right, or exercisable, exchangeable or convertible

68

 

security not described in clause (ii) above and outstanding as of the Issue Date;

     (iv) for a change in the par value of the Common Stock; or

     (v) for accrued and unpaid interest (including any Special Interest and Additional
Interest, if applicable).

     Section 13.08. Notice of Adjustment. Whenever the Conversion Rate or conversion privilege is
required to be adjusted pursuant to this Indenture, the Company shall promptly mail to Holders a
notice of the adjustment and file with the Trustee an Officer’s Certificate briefly stating the
facts requiring the adjustment, the adjusted Conversion Rate and the manner of computing it.
Failure to mail such notice or any defect therein shall not affect the validity of any such
adjustment. Unless and until the Trustee shall receive an Officer’s 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 13.09. Notice of Certain Transactions. In the event that there is a dissolution or
liquidation of the Company, the Company shall mail to Holders and file with the Trustee a notice
stating the proposed effective date. The Company shall mail such notice at least 20 days before
such proposed effective date. Failure to mail such notice or any defect therein shall not affect
the validity of any transaction referred to in this Section 13.09.

     Section 13.10. Effect of Reclassification, Consolidation, Merger or Sale On Conversion
Privilege. If any of the following events occur:

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

     (b) any consolidation, merger, or combination involving the Company with another corporation,
or

     (c) any sale, conveyance or lease to any other corporation of all or substantially all of the
property and assets of the Company,

     (d) any statutory share exchange,

in each case as a result of which holders of Common Stock shall be entitled to receive stock, other
securities or other property or assets (including cash or any combination thereof) (the “Reference
Property”) with respect to or in exchange for such Common Stock, the Holders of the Notes then
Outstanding will be entitled thereafter to convert those Notes into the kind and amount of shares
of

69

 

stock, other securities or other property or assets (including cash or any combination thereof)
which they would have owned or been entitled to receive upon such transaction had such notes been
converted into Common Stock immediately prior to such transaction. In the event holders of Common
Stock have the opportunity to elect the form of consideration to be received in such transaction,
the reference property 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 election. The
Company shall notify the Holders of the weighted average as soon as practicable after such
determination is made. The Company may not become a party to any such transaction unless its terms
are consistent with the preceding. None of the foregoing provisions shall affect the right of a
Holder of Notes to convert its Notes into shares of Common Stock prior to the effective date of
such transaction.

     The above provisions of this Section 13.10 shall similarly apply to successive
recapitalizations, reclassifications, mergers, consolidations, statutory share exchanges,
combinations, sales and conveyances.

     If this Section 13.10 applies to any event or occurrence, Section 13.06 hereof shall not
apply.

     The Company shall not become a party to any such transaction unless its terms are consistent
with the foregoing. None of the foregoing provisions shall affect the right of a Holder to convert
the Notes as set forth in Section 13.01 prior to the effective time of such transaction.

     Section 13.11. Trustee’s Disclaimer. (a) The Trustee shall have no duty to determine, or
liability in connection therewith, when an adjustment under this Article 13 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
Officer’s Certificate, including the Officer’s Certificate with respect thereto which the Company
is obligated to file with the Trustee pursuant to Section 13.08. Unless and until the Trustee
receives such Officer’s Certificate delivered pursuant to Section 13.08, the Trustee may assume
without inquiry that no such adjustment has been made and the last Conversion Rate of which the
Trustee has knowledge remains in effect. The Trustee makes no representation as to the validity or
value of any securities or assets issued upon conversion of Notes, and the Trustee shall not be
responsible for the Company’s failure to comply with any provisions of this Article 13.

     (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 13.10, but may
accept as conclusive evidence of the correctness thereof, and shall be fully protected in relying
upon, the Officer’s

70

 

Certificate and Opinion of Counsel, with respect thereto which the Company are
obligated to file with the Trustee pursuant to Section 13.10 and Section 10.01, respectively.

     Section 13.12. Voluntary Increase; Nasdaq Compliance. Subject to Section 9.01(e), the
Company from time to time may increase the Conversion Rate, to the extent permitted by law and
subject to any applicable stockholder approval requirements pursuant to the listing standards of
the Nasdaq Stock Market or such other United States securities exchange on which the Common Stock
is traded, by any amount for any period of at least 20 days. The Company may make such increase in
the Conversion Rate (in addition to others provided in this Indenture) as the Board of Directors
deems advisable to avoid or diminish any income tax to holders of Common Stock resulting from a
dividend or distribution of stock, or rights to acquire stock, or similar event, and the Company
provides 15 days’ prior written notice of any increase in the Conversion Rate to the Trustee and
the Holders: provided, however, that in no event may the Company increase the Conversion Rate such
that it causes the Conversion Price to be less than the par value of a share of Common Stock.

     The Company may not
 take any voluntary actions that would result in an adjustment to the
Conversion Rate pursuant to Section 13.06 without complying, if applicable, with the
stockholder approval rules of the NASDAQ Global Market and any similar rule of any stock exchange
on which the Common Stock is listed at the relevant time. In accordance with such listing
standards, this restriction shall apply at any time when the Notes are Outstanding, regardless of
whether the Company then has a class of securities listed on the NASDAQ Global Market.

     Section 13.13. Rights Plan. To the extent that the Company has a Rights Plan in effect upon
conversion of the Notes into Common Stock, the Holder will receive upon conversion of the Notes in
respect of which the Company has elected to deliver Common Stock, if applicable, the Rights under
the Rights Plan, unless prior to any conversion, the Rights have separated from the Common Stock,
in which case, and only in such case, the Conversion Rate will be adjusted at the time of
separation as if the Company distributed to all holders of Common Stock shares of the Company’s
Capital Stock, evidences of indebtedness or assets as described in Section 13.06(c) above, subject
to readjustment in the event of the expiration, termination or redemption of such Rights. In lieu
of any such adjustment, the Company may amend such applicable Rights Plan to provide that upon
conversion of the Notes the Holders will receive, in addition to the Common Stock issuable upon
such conversion, the Rights which would have attached to such Common Stock if the Rights had not
become separated from the Common Stock under such applicable Rights Plan.

     Section 13.14.
 Exchange in Lieu of Conversion. (a) Notwithstanding anything in this
Indenture to the contrary, when a Holder surrenders Notes for

71

 

 conversion, the Company may, at its
election, direct the Conversion Agent to surrender, on or prior to the second Business Day
immediately following the
Conversion Date (assuming for purposes of this Section 13.14 that the date such Holder
surrenders such Notes for conversion is the Conversion Date for such Notes), such Notes to a
financial institution designated by the Company (a “Financial Institution”) for exchange in lieu of
conversion.

     (b) In order to accept any such Notes surrendered for conversion, the Financial Institution
must agree to deliver, in exchange for such Notes, shares of Common Stock (and cash in lieu of
fractional shares) equal to the consideration due upon conversion under Section 13.01(a), together
with any cash payments (or common stock in lieu thereof) representing the Make-Whole Payment
pursuant to Section 14.01 or any additional shares of Common Stock representing the Fundamental
Change Make-Whole Premium pursuant to Section 13.01(e) (the “Exchange Settlement Property”).

     (c) By the close of business on the second Business Day immediately following the Conversion
Date, the Company must notify the Holder surrendering Notes for conversion that it has directed the
Financial Institution to make an exchange in lieu of conversion and the Financial Institution shall
be required to notify the Conversion Agent whether it will deliver the Exchange Settlement Property
upon exchange.

     (d) If the Financial Institution accepts any such Notes, it shall deliver the Exchange
Settlement Property to the Conversion Agent and the Conversion Agent shall deliver such Exchange
Settlement Property to the applicable Holder no later than the third Business Day following the
Conversion Date. Any Notes exchanged by the Financial Institution shall remain Outstanding.

     (e) If the Financial Institution agrees to accept any Notes for exchange but does not timely
deliver the related consideration, or if the Financial Institution does not accept the Notes for
exchange, the Company shall deliver such conversion consideration as if the Company had not made an
exchange election.

     The Company’s designation of the Financial Institution to which the Notes may be submitted for
exchange does not require the Financial Institution to accept any Notes. The Company shall not pay
any consideration to, or otherwise enter into any agreement with, the financial institution
designated as the Financial Institution for or with respect to such designation.

72

 

ARTICLE 14

Redemption Of Notes

     Section 14.01. Right to Redeem. (a) No sinking fund is provided for the Notes. On or after
the original Issue Date of the Notes, the Notes may be redeemed for cash in whole or in part at the
option of the Company if the Last Reported Sale Price of the Common Stock is greater than or equal
to 150% of the Conversion Price on at least 20 Trading Days during any 30 consecutive Trading
Day period ending on the date on which the Company mailed the Notice of Redemption.

     (b) The price at which the Notes are redeemable (the “Redemption Price”) shall be equal to (i)
100% of the principal amount of Notes to be redeemed, plus (ii) accrued and unpaid interest
(including any Special Interest and Additional Interest), if any, to, but excluding, the Redemption
Date, plus (iii) the Make-Whole Payment. The Trustee shall have no duty to determine or calculate
the Make-Whole Payment, which shall be determined by the Company in accordance with the provisions
of this Indenture, and the Trustee shall not be under any responsibility to determine the
correctness of any such determination and/or calculation and may conclusively rely on the
correctness thereof.

     (c) Upon any redemption in accordance with this Article 14, the Company will pay to converting
Holders, in addition to the shares of Common Stock due upon conversion (and cash in lieu of
fractional shares), the Make-Whole Payment on all Notes called for redemption and converted during
the period from the date the Company mailed the Notice of Redemption to the date of redemption (the
“Redemption Date”); provided, however, that such Make-Whole Payment shall not exclude interest
accrued to, but excluding, the Redemption Date. In the case of a Make-Whole Payment to converting
Holders only in accordance with this Section 14.01(c), the Company may elect to pay such Make-Whole
Payment in cash or shares of Common Stock, or any combination thereof. If the Company elects to
pay any portion of such Make-Whole Payment in shares of Common Stock, the Company shall specify a
percentage of such Make-Whole Payment in the Notice of Redemption to be paid in Common Stock. The
number of shares of Common Stock to be delivered in respect of such portion of such Make-Whole
Payment shall be determined by dividing such portion by 97.5% of the 5-day Volume-Weighted Average
Price per share for the five Trading Days immediately succeeding the Trading Day on which the
Company provides such Notice of Redemption. The Company shall not issue fractional shares for any
additional payment upon conversion but shall instead make a cash adjustment for any fractional
share payment. Notwithstanding the foregoing, the Company shall not pay any portion of any
Make-Whole Payment in shares of Common Stock if (i) the resale of any such shares of Common Stock
by any Person that is not an Affiliate of the Company shall require registration under the
Securities Act or (ii)

73

 

the issuance of such shares of Common Stock shall require a shareholder
approval pursuant to listing standards of the Nasdaq Stock Market.

     (d) The Company may not redeem any Notes unless all accrued and unpaid interest (including
Special Interest and Additional Interest, if applicable) thereon has been or is simultaneously paid
for all interest periods ending prior to the Redemption Date.

     (e) If the Redemption Date is after a Regular Record Date but on or prior to the corresponding
Interest Payment Date then notwithstanding the foregoing the Company shall (i) pay accrued and
unpaid interest on such Interest
Payment Date to the Holder of record on such Regular Record Date, the Make-Whole Payment will
equal the present value of all remaining interest payments starting with the next Interest Payment
Date for which interest has not been provided for, calculated as set forth in the definition of
Make-Whole Payment, and (x) in respect of any Notes redeemed on such Redemption Date, the
Redemption Price payable on such Notes shall not include such payment, or (y) in respect of any
Notes converted after such Regular Record Date and prior to the open of business on such Interest
Payment Date, the converting Holder shall not be required to pay funds equal to the interest
payable to the Holder of record on such Regular Record Date, as set forth under Section 13.02; and
(ii) pay any Make-Whole Payment on the Redemption Date to the Holders of the Notes to be redeemed
or Holders who convert their Notes called for redemption pursuant to Section 14.01(c), in each case
regardless of whether such Holders are the Holders of record on such Regular Record Date. However,
such Make-Whole Payment shall not include interest to be paid to the Holders of record on such
Interest Payment Date.

     Section 14.02. Selection of Notes to be Redeemed. If less than all the Notes are to be
redeemed, the Trustee shall select the Notes to be redeemed by lot, or on a pro rata basis or by
any other method the Trustee considers fair and appropriate (so long as such method is not
prohibited by the rules of the Nasdaq Global Select Market or any other stock exchange on which the
Common Stock is then listed, as applicable). The Trustee shall make the selection within seven
Business Days from its receipt of the notice from the Company delivered pursuant to Section 14.03
from Outstanding Notes not previously called for redemption.

     Notes and portions of Notes the Trustee selects shall be in principal amounts of $1,000 or in
integral multiples of $1,000 in excess thereof. Provisions of this Indenture that apply to Notes
called for redemption in whole also apply to Notes called for redemption in part. The Trustee
shall notify the Company promptly of the Notes or portions of Notes to be redeemed.

     If any portion of a Holder’s Notes are selected for partial redemption and such Holder
converts a portion of its Notes, the converted portion of such Notes

74

 

shall be deemed (so far as may
be) to be from the portion selected for redemption. Notes which have been converted during a
selection of Notes to be redeemed may be treated by the Trustee as Outstanding for the purpose of
such selection.

     Section 14.03. Notice of Redemption. At least 30 days but not more than 60 days before a
Redemption Date, the Company, or at the Company’s request, the Trustee, shall mail a notice of
redemption by first-class mail, postage prepaid, to the Trustee, the Paying Agent and each Holder
of Notes to be redeemed (the “Notice of Redemption”); provided, however, that the Company may not
deliver any such notice to any Holder of Notes at any time when there exists any accrued and unpaid
Defaulted Interest.

     The Notice of Redemption shall specify the Notes (including CUSIP numbers) to be redeemed and
shall state:

     (i) the Redemption Date;

     (ii) the Redemption Price;

     (iii) the applicable Conversion Rate and any adjustments thereto;

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

     (v) the amount of the Make-Whole Payment;

     (vi) the percentage, if any, of such Make-Whole Payment to be paid in Common Stock
for Notes called for redemption and converted during the period from the date the Company
mailed the Notice of Redemption to and including the Redemption Date, pursuant to Section
14.01(c); and

     (vii) the procedures a Holder must follow to exercise rights under Article 15.

     At the Company’s written request delivered at least 45 days prior to the Redemption Date
(unless a shorter period is agreed to by the Trustee), the Trustee shall give the Notice of
Redemption to each Holder of Notes to be redeemed in the Company’s name and at the Company’s
expense.

     Section 14.04. Effect of Notice of Redemption. Once Notice of Redemption is given, Notes
called for redemption become due and payable on the Redemption Date and at the Redemption Price
stated in the notice except for Notes that are converted in accordance with the terms of this
Indenture. Upon surrender to the Paying Agent, such Notes shall be paid at the Redemption Price
stated in the notice.

75

 

     Section 14.05. Deposit of Redemption Price. Prior to 10:00 a.m. (New York City time) on or
prior to the Redemption Date, the Company shall deposit with the Trustee or with the Paying Agent
(or, if the Company or a Subsidiary of the Company or an Affiliate of either of them is acting as
the Paying Agent, shall segregate and hold in trust as provided in Section 7.06) an amount of money
(in
immediately available funds if deposited on such Redemption Date) and shares of Common Stock,
if any, sufficient to pay the aggregate Redemption Price of all the Notes or portions thereof which
are to be redeemed as of the Redemption Date.

     If the Paying Agent holds money and shares of Common Stock, if any, sufficient to pay the
Redemption Price with respect to the Notes to be redeemed on the Redemption Date in accordance with
the terms of this Indenture, then, immediately on and after the Redemption Date, interest on such
Notes shall cease to accrue, whether or not the Notes are delivered to the Paying Agent, and all
other rights of the Holders of such Notes shall terminate, other than the right to receive the
Redemption Price upon delivery of such Notes.

     Section 14.06. Notes Redeemed in Part. (a) Any Note which is to be redeemed only in part
shall be surrendered at the office of the Paying Agent (with, if the Company or the Trustee so
requires, due endorsement by, or a written instrument of transfer in form satisfactory to the
Company and the Trustee duly executed by, the Holder thereof or such Holder’s attorney duly
authorized in writing) and the Company shall execute and, upon Company Order, the Trustee shall
authenticate and deliver to the Holder of such Note, without service charge, a new Note or Notes,
of any authorized denomination as requested by such Holder in aggregate principal amount equal to,
and in exchange for, the portion of the principal amount of the Note so surrendered that is not
redeemed.

     (b) In the event of any redemption of any Note in part, the Company shall not be required to
(i) issue, register the transfer of or exchange, pursuant to Section 2.05 or Section 2.06, any
Notes during a period beginning at the open of business 15 days before the mailing of a Notice of
Redemption and ending at the close of business on the day of such mailing or (ii) register the
transfer of or exchange, pursuant to Section 2.05, any Notes so selected for redemption, in whole
or in part, except the portion of such Notes not being redeemed.

ARTICLE 15

Repurchase Of Notes

     Section 15.01. Repurchase of Notes at Option of the Holder Upon a Fundamental Change. (a) If
a Fundamental Change occurs prior to the Maturity Date, each Holder of a Note shall have the right,
at the option of the Holder, to require the Company to repurchase all or any portion of the Notes
of such Holder equal to $1,000 principal amount (or an integral multiple thereof) at the

76

 

Fundamental Change Purchase Price, on the date specified by the Company that is not less than 20
days and not more than 35 days after the date of the Fundamental Change Company Notice pursuant to
Section 15.01(b) (the “Fundamental Change Purchase Date”). If the Fundamental Change Purchase Date
is after a Regular Record Date and on or prior to the corresponding Interest Payment Date,
the Company shall pay accrued and unpaid interest to the Holder of a Note of record at the
close of business on such Regular Record Date.

     (b) On or before the tenth day after the Fundamental Change Effective Date, the Company, or,
at the request of the Company, the Trustee, shall mail a written notice of the occurrence of the
Fundamental Change, and of the repurchase right arising therefrom, to the Trustee, Paying Agent and
to each Holder (and to beneficial owners as required by applicable law) (the “Fundamental Change
Company Notice”). Simultaneously with providing such Fundamental Change Company Notice, the Company
shall publish a notice containing the information that is required in the Fundamental Change
Company Notice in a newspaper of general circulation in The City of New York or publish information
on a website of the Company or through such other public medium the Company may use at that time.
The Fundamental Change Company Notice shall set forth the Holder’s right to require the Company to
purchase the Notes and specify:

     (i) the events causing such Fundamental Change;

     (ii) the date of such Fundamental Change;

     (iii) the last date by which the Fundamental Repurchase Notice must be delivered to
elect the repurchase option pursuant to this Section 15.01;

     (iv) the Fundamental Change Purchase Price;

     (v) the Fundamental Change Purchase Date;

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

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

     (viii) the procedures that the Holder must follow to require the Company to
repurchase its Notes under this Section 15.01.

77

 

     At the Company’s request, the Trustee shall give such Fundamental Change Company Notice in the
Company’s name and at the Company’s expense; provided that, unless otherwise agreed by the Trustee,
the Company makes such request at least five (5) Business Days prior to the date by which such
Fundamental Change Company Notice must be given to the Holders in accordance with this Section
15.01; provided, further, that the text of such Fundamental Change Company Notice shall be prepared
by the Company. If any
of the Notes is in the form of a Global Note, then the Company shall modify such notice to the
extent necessary to accord with the Applicable Procedures relating to the purchase of Global Notes.

     No failure of the Company to give the foregoing notices or defect therein shall limit any
Holder’s right to exercise its right to cause the Company to repurchase such Holder’s Notes
pursuant to this Section 15.01.

     (c) A Holder may exercise its rights specified in this Section 15.01 upon delivery of (1) the
Note to be repurchased, duly endorsed for transfer, together with (2) a written purchase notice and
the form entitled “Fundamental Change Purchase Notice” on the reverse of the Note duly completed
and which may be delivered by letter, overnight courier, hand delivery, facsimile transmission or
in any other written form onto the Paying Agent (in the case of Notes held in book-entry form, in
accordance with DTC’s Applicable Procedures) of the exercise of such rights (a “Fundamental Change
Purchase Notice”) to the Paying Agent at any time on or before the close of business on the
Fundamental Change Purchase Date, subject to extension to comply with applicable law.

     (i) The Fundamental Change Purchase Notice shall state: (A) the certificate number
(if such Note is held in certificated form) of the Note which the Holder will deliver to
be repurchased (or, if the Note is held in global form, any other items required to comply
with the Applicable Procedures), (B) the portion of the principal amount of the Note which
the Holder will deliver to be repurchased and (C) that such Note shall be repurchased as
of the Fundamental Change Purchase Date pursuant to the terms and conditions specified in
the Notes and in this Indenture.

     (ii) The delivery of a Note for which a Fundamental Change Purchase Notice has been
timely delivered to any Paying Agent, on or before 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 (or, if the Note is held in global form, any
items required to comply with the Applicable Procedures).

78

 

     (iii) The Company shall only be obliged to purchase, pursuant to this Section 15.01,
a portion of a Note if the principal amount of such portion is $1,000 or an integral
multiple of $1,000 (provisions of this Indenture that apply to the purchase of all of a
Note also apply to the purchase of such portion of such Note).

     (iv) A Paying Agent shall promptly notify the Company of the receipt by it of any
Fundamental Change Purchase Notice.

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

     (vi) A Holder may withdraw any Fundamental Change Purchase Notice in whole or in part
by written notice of withdrawal delivered to the Paying Agent or in accordance with DTC’s
Applicable Procedures prior to the close of business on the Business Day prior to the
Fundamental Change Purchase Date. Such notice of withdrawal shall state: (A) the principal
amount of the withdrawn Note , (B) the certificate number (if such Note is held in
certificated form) of the withdrawn Note (or, if the Note is held in global form, any
other items required to comply with the Applicable Procedures), and (C) the principal
amount, if any, which remains subject to the Fundamental Change Purchase Notice.

     (d) The Company shall deposit cash at the time and in the manner as provided in Section 15.03,
sufficient to pay the aggregate Fundamental Change Purchase Price of all Notes to be purchased
pursuant to this Section 15.01.

     Section 15.02. Effect of Fundamental Change Purchase Notice. Upon receipt by any Paying
Agent of a properly completed Fundamental Change Purchase Notice from a Holder, the Holder of the
Note in respect of which such Fundamental Change Purchase Notice was given shall thereafter be
entitled to receive the Fundamental Change Purchase Price with respect to such Note. Such
Fundamental Change Purchase Price shall be paid to such Holder promptly following the later of (1)
the Fundamental Change Purchase Date (provided that the conditions in Section 15.01 have been
satisfied) and (2) the time of book-entry transfer or delivery of such Note to a Paying Agent by
the Holder thereof in the manner required by Section 15.01(c), subject to extension to comply with
applicable law.

     Section 15.03. Deposit of Fundamental Change Purchase Price. (a) On or before the applicable
Fundamental Change Purchase Date, the Company shall deposit 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
trust as provided in

79

 

Section 7.06) an amount of money (in immediately available funds if deposited
on or after such Fundamental Change Purchase Date), sufficient to pay the aggregate Fundamental
Change Purchase Price of all the Notes or portions thereof that are to be purchased as of the
Fundamental Change Purchase Date. Payment by the Paying Agent of the Fundamental Change Purchase
Price following receipt of the Fundamental Change Purchase Price from the Company shall be made
promptly following the later of the Fundamental Change Purchase Date or the time of book-entry
transfer or delivery of such Notes.

     (b) If the Paying Agent holds, on the Fundamental Change Purchase Date, in accordance with the
terms hereof, money or securities sufficient to pay
the Fundamental Change Purchase Price of any Note for which a Fundamental Change Purchase
Notice has been tendered then, immediately following the applicable Fundamental Change Purchase
Date, whether or not book-entry transfer of the Note is made or whether or not the Note is
delivered to the Paying Agent, each such Note shall cease to be Outstanding, interest, including
any additional interest, if any, shall cease to accrue, and all other rights of the Holder in
respect of the Note shall terminate (other than the right to receive the Fundamental Change
Purchase Price upon delivery or transfer of the Note as aforesaid).

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

     Section 15.04. Repayment to the Company. To the extent that the aggregate amount of cash
deposited by the Company pursuant to Section 15.03 exceeds the aggregate Fundamental Change
Purchase Price of the Notes or portions thereof that the Company is obligated to purchase, then
promptly after the Fundamental Change Purchase Date the Paying Agent shall return any such excess
cash to the Company.

     Section 15.05. Notes Purchased In Part. Any Note 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, the Company shall execute and the Trustee shall authenticate and deliver to the Holder of
such Note, without service charge, a new Note or Notes, of such authorized denomination or
denominations as may be requested by such Holder (which must be equal to $1,000 principal amount or
any integral thereof), in aggregate principal amount equal to, and in exchange for, the portion of
the principal amount of the Note so surrendered that is not purchased.

80

 

     Section 15.06. Compliance With Securities Laws Upon Purchase of Notes. In connection with
any offer to purchase of Notes under Section 15.01, the Company shall (a) comply with Rule 13e-4
and Rule 14e-1 (or any successor to either such Rule), and any other tender offer rules, if
applicable, under the Exchange Act, (b) file the related Schedule TO (or any successor or similar
schedule, form or report) if required under the Exchange Act, and (c) otherwise comply with all
applicable federal and state securities laws in connection with such offer to purchase or purchase
of Notes, all so as to permit the rights of the Holders and obligations of the Company under
Section 15.01 through Section 15.05 to be exercised in the time and in the manner specified
therein. To the extent that compliance with any such laws, rules and regulations would result in a
conflict with any of the terms hereof, this Indenture is hereby modified to the extent required for
the Company to comply with such laws, rules and regulations.

ARTICLE 16

Meeting Of Holders Of Notes

     Section 16.01. Purposes For Which Meetings May Be Called. A meeting of Holders of Notes may
be called at any time and from time to time pursuant to this Article 16 to make, give or take any
request, demand, authorization, direction, notice, consent, waiver or other action provided by this
Indenture to be made, given or taken by Holders of Notes.

     Notwithstanding anything contained in this Article 16, the Trustee may, during the pendency of
a Default or an Event of Default, call a meeting of Holders of Notes in accordance with its
standard practices.

     Section 16.02. Call Notice and Place of Meetings. (a) The Trustee may at any time call a
meeting of Holders of Notes for any purpose specified in Section 16.01 hereof, to be held at such
time and at such place in The City of New York. Notice of every meeting of Holders of Notes,
setting forth the time and the place of such meeting, in general terms the action proposed to be
taken at such meeting and the percentage of the principal amount of the then-Outstanding Notes
which shall constitute a quorum at such meeting, shall be given, in the manner provided in the
Indenture, not less than 21 nor more than 180 days prior to the date fixed for the meeting.

     (b) In case at any time the Company, pursuant to a resolution of the Board of Directors, or
the Holders of at least 10% in principal amount of the Notes then Outstanding shall have requested
the Trustee to call a meeting of the Holders of Notes for any purpose specified in Section 16.01
hereof, by written request setting forth in reasonable detail the action proposed to be taken at
the meeting, and the Trustee shall not have made the first publication of the notice of such
meeting within 21 days after receipt of such request or shall not thereafter

81

 

proceed to cause the
meeting to be held as provided herein, then the Company or the Holders of Notes in the amount
specified, as the case may be, may determine the time and the place in The City of New York for
such meeting and may call such meeting for such purposes by giving notice thereof as provided in
Section 16.02(a).

     Section 16.03. Persons Entitled to Vote at Meetings. To be entitled to vote at any meeting
of Holders of Notes, a Person shall be (a) a Holder of one or more Outstanding Notes or (b) a
Person appointed by an instrument in writing as proxy for a Holder or Holders of one or more
Outstanding Notes by such Holder or Holders. The only Persons who shall be entitled to be present
or to speak at any meeting of Holders shall be the Persons entitled to vote at such meeting and
their counsel, any representatives of the Trustee and its counsel and any representatives of the
Company and its counsel.

     Section 16.04. Quorum; Action. The Persons entitled to vote a majority in principal amount
of the then-Outstanding Notes shall constitute a quorum. In
the absence of a quorum within 30 minutes of the time appointed for any such meeting, the
meeting shall, if convened at the request of Holders of Notes, be dissolved. In any other case, the
meeting may be adjourned for a period of not less than 10 days as determined by the chairman of the
meeting prior to the adjournment of such meeting. In the absence of a quorum at any such adjourned
meeting, such adjourned meeting may be further adjourned for a period of not less than 10 days as
determined by the chairman of the meeting prior to the adjournment of such adjourned meeting.
Notice of the reconvening of any adjourned meeting shall be given as provided in Section 16.02(a)
hereof, except that such notice need be given only once and not less than five days prior to the
date on which the meeting is scheduled to be reconvened.

     At a meeting or an adjourned meeting duly reconvened and at which a quorum is present as
aforesaid, any resolution and all matters (except as limited by the third paragraph of Section 9.02
hereof) shall be effectively passed and decided if passed or decided by the Persons entitled to
vote not less than a majority in principal amount of Notes then Outstanding represented and voting
at such meeting.

     Any resolution passed or decisions taken at any meeting of Holders of Notes duly held in
accordance with this Section 16.04 shall be binding on all the Holders of Notes, whether or not
present or represented at the meeting.

     Section 16.05. Determination of Voting Rights; Conduct and Adjournment of Meetings. (a)
Notwithstanding any other provisions of this Indenture, the Trustee may make such reasonable
regulations as it may deem advisable for any meeting of Holders of Notes in regard to proof of the
holding of Notes and of the appointment of proxies and in regard to the appointment and

82

 

duties of
inspectors of votes, the submission and examination of proxies, certificates and other evidence of
the right to vote, and such other matters concerning the conduct of the meeting as it shall deem
appropriate.

     (b) The Trustee shall, by an instrument in writing, appoint a temporary chairman (which may be
the Trustee) of the meeting, unless the meeting shall have been called by the Company or by Holders
of Notes as provided in Section 16.02 hereof, in which case the Company or the Holders of Notes
calling the meeting, as the case may be, shall in like manner appoint a temporary chairman. A
permanent chairman and a permanent secretary of the meeting shall be elected by vote of the Persons
entitled to vote a majority in principal amount of the Outstanding Notes represented at the
meeting.

     (c) At any meeting, each Holder of a Note or proxy shall be entitled to one vote for each
$1,000 principal amount of Notes held or represented by him; provided, however, that no vote shall
be cast or counted at any meeting in respect of any Note challenged as not Outstanding and ruled by
the chairman of the meeting to be not Outstanding. The chairman of the meeting shall have no right
to vote, except as a Holder of a Note or proxy.

     (d) Any meeting of Holders of Notes duly called pursuant to Section 16.02 hereof at which a
quorum is present may be adjourned from time to time by Persons entitled to vote a majority in
principal amount of the then-Outstanding Notes represented at the meeting, and the meeting may be
held as so adjourned without further notice.

     Section 16.06. Counting Votes and Recording Action of Meetings. The vote upon any resolution
submitted to any meeting of Holders of Notes shall be by written ballots on which shall be
subscribed the signatures of the Holders of Notes or of their representatives by proxy and the
principal amounts and serial numbers of the Outstanding Notes held or represented by them. The
permanent chairman of the meeting shall appoint two inspectors of votes who shall count all votes
cast at the meeting for or against any resolution and who shall make and file with the secretary of
the meeting their verified written reports in duplicate of all votes cast at the meeting. A record,
at least in duplicate, of the proceedings of each meeting of Holders of Notes shall be prepared by
the secretary of the meeting and there shall be attached to said record the original reports of the
inspectors of votes on any vote by ballot taken thereat and affidavits by one or more Persons
having knowledge of the facts setting forth a copy of the notice of the meeting and showing that
said notice was given as provided in Section 16.02 hereof and, if applicable, Section 16.04 hereof.
Each copy shall be signed and verified by the affidavits of the permanent chairman and secretary of
the meeting and one such copy shall be delivered to the Company and another to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots voted

83

 

at the meeting. Any
record so signed and verified shall be conclusive evidence of the matters therein stated.

ARTICLE 17

Miscellaneous Provisions

     Section 17.01. Provisions Binding on Company’s Successors. All the covenants, stipulations,
promises and agreements of the Company contained in this Indenture shall bind its successors and
assigns whether so expressed or not.

     Section 17.02. Official Acts by Successor. Any act or proceeding by any provision of this
Indenture authorized or required to be done or performed by any board, committee or officer of the
Company shall and may be done and performed with like force and effect by the like board, committee
or officer of any corporation or other entity that shall at the time be the lawful sole successor
of the Company.

     Section 17.03. Notices. Except as otherwise expressly provided herein, any notice, request
or demand that by any provision of this Indenture is required or permitted to be given, made or
served by the Trustee or by the Holders or by any other Person pursuant to this Indenture to or on
the Company may be given or
served by being deposited in first class mail, postage prepaid, addressed (until another
address is filed in writing by the Company with the Trustee), as follows: 28903 North Avenue Paine,
Valencia, CA 91355. Any notice, election, request or demand by the Company or any Holder or by any
other Person pursuant to this Indenture to or upon the Trustee shall be deemed to have been
sufficiently given or made, for all purposes, if given or made in writing at the Corporate Trust
Office of the Trustee. Except as otherwise expressly provided herein, any notice or communication
to a Holder of a Note may be given or served by being deposited in first class mail, postage
prepaid, addressed at the Holder’s address as it appears in the Note Register.

     Section 17.04. Governing Law. THIS INDENTURE AND EACH NOTE SHALL BE DEEMED TO BE A CONTRACT
MADE UNDER THE LAWS OF NEW YORK, AND FOR ALL PURPOSES SHALL BE CONSTRUED IN ACCORDANCE WITH THE
LAWS OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF.

     Section 17.05. Evidence of Compliance with Conditions Precedent; Certificates and Opinions of
Counsel to Trustee. Upon any application or demand by the Company to the Trustee to take any
action under any of the provisions of this Indenture, the Company shall furnish to the Trustee an
Officer’s Certificate and an Opinion of Counsel stating that such action is permitted by the

84

 

terms
of this Indenture; provided that no such Opinion of Counsel shall be required in connection with
the issuance of Notes on the Issue Date.

     Each Officer’s Certificate and Opinion of Counsel provided for by or on behalf of the Company
in this Indenture and delivered to the Trustee with respect to compliance with this Indenture
(other than the Officer’s Certificates provided for in Section 4.04) shall include (a) a statement
that the Person making such certification is familiar with the requested action and this Indenture;
(b) a brief statement as to the nature and scope of the examination or investigation upon which the
statement contained in such certificate is based; (c) a statement that, in the judgment of such
person, he or she has made such examination or investigation as is necessary to enable him or her
to express an informed judgment as to whether or not such action is permitted by this Indenture;
and (d) a statement as to whether or not, in the judgment of such Person, such action is permitted
by this Indenture.

     Notwithstanding anything to the contrary in this Section 17.05, if any provision in this
Indenture specifically provides that the Trustee shall or may receive an Opinion of Counsel in
connection with any action to be taken by the Trustee or the Company hereunder, the Trustee shall
be entitled to, or entitled to request, such Opinion of Counsel.

     Section 17.06. Legal Holidays. In any case where any Interest Payment Date, Redemption Date,
Fundamental Change Purchase Date, Conversion Date or Maturity Date is not a Business Day, then any
action to be taken on such date
need not be taken on such date, but may be taken on the next succeeding Business Day with the
same force and effect as if taken on such date, and no interest shall accrue for the period from
and after such date.

     Section 17.07. No Security Interest Created. Nothing in this Indenture or in the Notes,
expressed or implied, shall be construed to constitute a security interest under the Uniform
Commercial Code or similar legislation, as now or hereafter enacted and in effect, in any
jurisdiction.

     Section 17.08. Benefits of Indenture. Nothing in this Indenture or in the Notes, expressed
or implied, shall give to any Person, other than the parties hereto, any Paying Agent, any
Conversion Agent, any authenticating agent, any Note Registrar and their successors hereunder or
the Holders of the Notes, any benefit or any legal or equitable right, remedy or claim under this
Indenture.

     Section 17.09. Table of Contents, Headings, Etc. The table of contents and the titles 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.

85

 

     Section 17.10. Execution in Counterparts. This Indenture may be executed in any number of
counterparts, each of which shall be an original, but such counterparts shall together constitute
but one and the same instrument.

     Section 17.11. Severability. In the event any provision of this Indenture or in the Notes
shall be invalid, illegal or unenforceable, then (to the extent permitted by law) the validity,
legality or enforceability of the remaining provisions shall not in any way be affected or
impaired.

     Section 17.12. Waiver of Jury Trial. EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN
ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTION
CONTEMPLATED HEREBY.

     Section 17.13. Consent to Jurisdiction. (a) The Company hereby irrevocably and
unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of any New
York State court or federal court of the United States sitting in the State and City of New York,
County and Borough of Manhattan, and any appellate court from any thereof, in any action or
proceeding arising out of or relating to this Indenture or the Notes, or for recognition or
enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally
agrees that all claims in respect of any such action or proceeding may be heard and determined in
such state court sitting in the State and City of New York, County and Borough of Manhattan or, to
the extent permitted by law, in such federal court sitting in the State and City of New York,
County and Borough of Manhattan. Each of the parties hereto agrees that a final judgment in
any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law.

     (b) The Company hereby irrevocably and unconditionally waives, to the fullest extent it may
legally and effectively do so, any objection which it may now or hereafter have to the laying of
venue of any suit, action or proceeding arising out of or relating to this Indenture or the Notes
in any New York State or federal court. Each of the parties hereto hereby irrevocably waives, to
the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of
such action or proceeding in any such court.

     Section 17.14. Force Majeure. In no event shall the Trustee be responsible or liable for any
failure or delay in the performance of its obligations hereunder arising out of or caused by,
directly or indirectly, forces beyond its control, including, without limitation, strikes, work
stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural
catastrophes or

86

 

acts of God, and interruptions, loss or malfunctions of utilities, communications
or computer (software and hardware) services; it being understood that the Trustee shall use
reasonable efforts that are consistent with accepted practices in the banking industry to resume
performance as soon as practicable under the circumstances.

     Section 17.15. Calculations. Except as explicitly stated herein, the Company shall be
responsible for making all calculations required pursuant to this Indenture and the Notes,
including, without limitation, calculations with respect to determinations of the Conversion Price
and Conversion Rate applicable to the Notes. The Company shall make all such calculations in good
faith and, absent manifest error, the Company’s calculations shall be binding on the Holders. The
Company shall provide a written schedule of such calculations to the Trustee, and the Trustee shall
be entitled to conclusively rely upon the accuracy of the Company’s calculations without
responsibility for independent verification thereof. The Trustee shall forward a copy of such
calculations to any Holder upon such Holder’s written request.

     Section 17.16. U.S.A. Patriot Act. The parties hereto acknowledge that in accordance with
Section 326 of the U.S.A. Patriot Act, the Trustee, like all financial institutions and in order to
help fight the funding of terrorism and money laundering, is required to obtain, verify, and record
information that identifies each person or legal entity that establishes a relationship or opens an
account with the Trustee. The parties to this Indenture agree that they will provide the Trustee
with such information as it may request in order for the Trustee to satisfy the requirements of the
U.S.A. Patriot Act.

[SIGNATURE PAGE FOLLOWS]

87

 

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

	 	 	 	 	 
	 	MANNKIND CORPORATION, as Issuer

 	 
	 	By:  	/s/
Matthew J. Pfeffer 	 
	 	 	Name:  	Matthew J. Pfeffer 	 
	 	 	Title:  	Corporate Vice President and
 Chief Financial
Officer 	 
	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee

 	 
	 	By:  	/s/
Maddy Hall 	 
	 	 	Name:  	Maddy Hall 	 
	 	 	Title:  	Vice President 	 
	 

88

 

Schedule A

Make Whole Premium Upon a Fundamental Change

(Number of Additional Shares)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock Price
	 	 	$5.97	 	$6.50	 	$7.00	 	$8.00	 	$10.00	 	$15.00	 	$20.00	 	$25.00	 	$30.00	 	$50.00
	August 24, 2010

	 	 	20.4182	 	 	 	20.4182	 	 	 	20.4182	 	 	 	20.4182	 	 	 	18.3976	 	 	 	12.2848	 	 	 	9.2714	 	 	 	7.3218	 	 	 	6.1493	 	 	 	3.7299	 
	August 15, 2011

	 	 	20.4182	 	 	 	20.4182	 	 	 	20.4182	 	 	 	19.8839	 	 	 	15.8641	 	 	 	10.6240	 	 	 	7.9606	 	 	 	6.4456	 	 	 	5.2813	 	 	 	3.1875	 
	August 15, 2012

	 	 	20.4182	 	 	 	19.7954	 	 	 	18.4232	 	 	 	16.1445	 	 	 	12.9562	 	 	 	8.6237	 	 	 	6.4758	 	 	 	5.1902	 	 	 	4.3654	 	 	 	2.6155	 
	August 15, 2013

	 	 	20.4182	 	 	 	14.3658	 	 	 	13.3212	 	 	 	11.6771	 	 	 	9.3477	 	 	 	6.2018	 	 	 	4.6676	 	 	 	3.7430	 	 	 	3.1215	 	 	 	1.8779	 
	August 15, 2014

	 	 	20.4182	 	 	 	7.7914	 	 	 	7.2466	 	 	 	6.2954	 	 	 	5.0676	 	 	 	3.3901	 	 	 	2.5466	 	 	 	2.0406	 	 	 	1.7032	 	 	 	1.0287	 
	August 15, 2015

	 	 	20.4182	 	 	 	6.7603	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 

89

 

EXHIBIT A

[FORM OF FACE OF NOTE]

[INCLUDE IF A GLOBAL NOTE]

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

[INCLUDE IF A RESTRICTED SECURITY]

     THE SALE OF THIS NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND ACCORDINGLY, THIS NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, OR
OF A BENEFICIAL OWNERSHIP HEREIN, THE ACQUIRER: (I) REPRESENTS THAT IT, AND ANY ACCOUNT FOR WHICH
IT IS ACTING, IS A “QUALIFIED INSTITUTIONAL BUYER” (WITHIN THE MEANING OF RULE 144A UNDER THE
SECURITIES ACT) AND THAT IT EXERCISES SOLE INVESTMENT DISCRETION WITH RESPECT TO EACH SUCH ACCOUNT,
AND (II) AGREES (1) THAT IT WILL NOT WITHIN THE LATER OF (X) ONE YEAR AFTER THE LAST DATE OF
ORIGINAL ISSUANCE OF NOTES (INCLUDING THROUGH THE EXERCISE OF THE OPTION TO PURCHASE ADDITIONAL
NOTES) AND (Y) 90 DAYS AFTER IT CEASES TO BE AN AFFILIATE (WITHIN THE MEANING OF RULE 144 UNDER THE
SECURITIES ACT) OF MANNKIND CORPORATION (THE “COMPANY”), OFFER, RESELL, PLEDGE OR OTHERWISE
TRANSFER THE NOTES EVIDENCED HEREBY, THE COMMON STOCK ISSUABLE UPON CONVERSION OF SUCH NOTES OR ANY
BENEFICIAL OWNERSHIP HEREIN, EXCEPT: (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF; (B) UNDER A
REGISTRATION STATEMENT THAT HAS BECOME EFFECTIVE UNDER THE SECURITIES ACT; (C) TO A PERSON THE
SELLER REASONABLY BELIEVES IS A QUALIFIED

A-1

 

INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) THAT IS PURCHASING FOR
ITS OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER QUALIFIED INSTITUTIONAL BUYER AND TO WHOM NOTICE IS
GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, ALL IN COMPLIANCE WITH RULE 144A
(IF AVAILABLE); OR (D) UNDER ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT, INCLUDING RULE 144, IF AVAILABLE; AND (2) THAT IT WILL, PRIOR TO ANY TRANSFER
OF THIS NOTE WITHIN THE LATER OF (X) SIX MONTHS (OR, IF THE COMPANY HAS NOT SATISFIED THE CURRENT
PUBLIC INFORMATION REQUIREMENTS OF RULE 144, ONE YEAR) AFTER THE LAST DATE OF ORIGINAL ISSUANCE OF
NOTES (INCLUDING THROUGH THE EXERCISE OF THE OPTION TO PURCHASE ADDITIONAL NOTES) AND (Y) 90 DAYS
AFTER IT CEASES TO BE AN AFFILIATE (WITHIN THE MEANING OF RULE 144) OF THE COMPANY, FURNISH TO THE
TRUSTEE AND THE COMPANY SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS THEY MAY
REQUIRE AND MAY RELY UPON TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
APPLICABLE STATE SECURITIES LAWS. IN ANY EVENT, NO AFFILIATE OF THE COMPANY MAY RESELL THIS NOTE
OTHER THAN UNDER A REGISTRATION STATEMENT THAT HAS BECOME EFFECTIVE UNDER THE SECURITIES ACT OR
PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT IN A TRANSACTION
THAT RESULTS IN SUCH NOTE NO LONGER BEING “RESTRICTED SECURITIES” (AS DEFINED UNDER RULE 144). NO
REPRESENTATION IS MADE AS TO THE AVAILABILITY OF ANY EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT. EACH PURCHASER AND TRANSFEREE OF A NOTE AND THE COMMON STOCK ISSUABLE UPON
CONVERSION OF A NOTE WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING OF THE NOTE AND
THE COMMON STOCK ISSUABLE UPON CONVERSION OF THE NOTE THAT (A) ITS PURCHASE AND HOLDING OF THE NOTE
AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THE NOTE IS NOT MADE ON BEHALF OF OR WITH “PLAN
ASSETS” OF ANY PLAN SUBJECT TO TITLE I OF ERISA, SECTION 4975 OF THE CODE OR ANY SIMILAR LAW OR (B)
ITS PURCHASE AND HOLDING OF THE NOTE AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THE NOTE WILL
NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA, SECTION 4975 OF THE
CODE OR ANY SIMILAR LAW.

A-2

 

MANNKIND CORPORATION

5.75% Convertible Senior Note due 2015

			
	 	 	 
	No.                     
	 	                        $

CUSIP No.

ISIN No.

     MannKind Corporation, a corporation duly organized and validly existing under the laws of the
state of Delaware (herein called the “Company,” which term includes any successor corporation or
other entity under the Indenture referred to on the reverse hereof), for value received hereby
promises to pay to CEDE & CO., or registered assigns, the principal sum of [     ] (which amount may
from time to time be increased or decreased to such other principal amounts as permitted by the
Indenture by adjustments made on the records of the Trustee or the Custodian of the Depositary as
set forth in Schedule A hereto, in accordance with the rules and procedures of the Depositary) on
August 15, 2015, and interest thereon as set forth below.

     This Note shall bear interest at the rate of 5.75% per year from August 24, 2010, or from the
most recent date to which interest had been paid or provided for to, but excluding, the next
scheduled Interest Payment Date until August 15, 2015. Interest is payable semi-annually in
arrears on each February 15 and August 15 (or if any such day is not a Business Day, the
immediately following Business Day), commencing February 15, 2011, to Holders of record at the
close of business on the preceding February 1 and August 1 (whether or not such day is a Business
Day), respectively.

     Interest not paid when due and any interest on principal or interest not paid when due will be
paid to Holders on a special record date, which will be the 15th day preceding the day fixed by the
Company for the payment of such interest, whether or not such day is a Business Day. At least 15
days before a special record date, the Company will send to each Holder and to the Trustee a notice
that sets forth the special record date, the payment date and the amount of interest to be paid.

     Payment of the principal of, and accrued and unpaid interest on, this Note shall be made at
the office or agency of the Company maintained for that purpose in such lawful money of the United
States of America as at the time of payment shall be legal tender for the payment of public and
private debts; provided, however, that interest on any Notes in certificated form (i) to the Person
entitled thereto having an aggregate principal amount of $2,000,000 or less, by check mailed to
such Person at the address set forth in the Note Register and (ii) to the

A-3

 

Person entitled thereto having an aggregate principal amount of more than $2,000,000, either
by check mailed to such Person or, upon application by such Person to the Note Registrar not later
than the relevant Regular Record Date, by wire transfer in immediately available funds to such
Person’s account within the United States, which application and wire transfer instructions shall
remain in effect until such Person notifies, in writing, the Note Registrar to the contrary.

     Reference is made to the further provisions of this Note set forth on the reverse hereof,
including, without limitation, provisions giving the Holder of this Note the right to convert this
Note into shares of Common Stock (together with cash in lieu of fractional shares) on the terms and
subject to the limitations set forth in the Indenture. Such further provisions shall for all
purposes have the same effect as though fully set forth at this place.

     THIS NOTE SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF NEW YORK, AND FOR ALL
PURPOSES SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF
LAWS PRINCIPLES THEREOF.

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

[Remainder of page intentionally left blank]

A-4

 

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

	 	 	 	 	 
	 	MANNKIND CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Dated:

	 	 	 	 	 
	 	TRUSTEE’S CERTIFICATE OF AUTHENTICATION

WELLS FARGO BANK, NATIONAL ASSOCIATION

as Trustee, certifies that this is one of the Notes described

in the within-named Indenture.

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

A-5

 

[FORM OF REVERSE OF NOTE]

MANNKIND CORPORATION

5.75% Convertible Senior Note due 2015

     This Note is one of a duly authorized issue of the Notes of the Company, designated as its
5.75% Convertible Senior Notes due 2015 (herein called the “Notes”), all issued or to be issued
under and pursuant to an Indenture dated as of August 24, 2010 (herein called the “Indenture”),
between the Company and Wells Fargo Bank, National Association (herein called the “Trustee”), to
which Indenture and all indentures supplemental thereto reference is hereby made for a description
of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee,
the Company and the Holders of the Notes. Additional Notes may be issued in an unlimited aggregate
principal amount, subject to certain conditions specified in the Indenture.

     In case an Event of Default, as defined in the Indenture, shall have occurred and be
continuing, the principal of and accrued and unpaid interest, if any, on all Notes may be declared,
by either the Trustee or Holders of not less than 25% in aggregate principal amount of Notes then
outstanding, and upon said declaration shall become, due and payable, in the manner, with the
effect and subject to the conditions and certain exceptions set forth in the Indenture.

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

     The Indenture contains provisions permitting the Company and the Trustee in certain
circumstances, without the consent of the Holders of the Notes, and in other circumstances, with
the consent of the Holders of not less than a majority in aggregate principal amount of the Notes
at the time outstanding, evidenced as in the Indenture provided, to execute supplemental indentures
modifying the terms of the Indenture and the Notes as described therein. It is also provided in
the Indenture that, subject to certain exceptions, the Holders of a majority in aggregate principal
amount of the Notes at the time outstanding may on behalf of the Holders of all of the Notes waive
any past Default or Event of Default under the Indenture and its consequences.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the
principal of and accrued and unpaid

 

interest, if any, on this Note at the place, at the respective times, at the rate and in the
lawful money herein prescribed or to satisfy its obligation to convert the Notes.

     The Notes are issuable in registered form without coupons in denominations of $1,000 principal
amount and multiples thereof. At the office or agency of the Company referred to on the face
hereof, and in the manner and subject to the limitations provided in the Indenture, Notes may be
exchanged for a like aggregate principal amount of Notes of other authorized denominations, without
payment of any service charge but, if required by the Company or Trustee, with payment of a sum
sufficient to cover any tax, assessments or other governmental charges that may be imposed in
connection therewith as a result of the name of the Holders of the new Notes issued upon such
exchange of Notes being different from the name of the Holder of the old Notes surrendered for such
exchange.

     The Notes are not subject to redemption through the operation of any sinking fund.

     The Company may redeem the Notes in whole or in part for cash, subject to certain conditions
described in the Indenture, at any time prior to the Maturity Date. The Redemption Price will
equal 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest,
if any, to, but excluding, the Redemption Date plus the Make-Whole Payment, as defined in the
Indenture.

     Upon the occurrence of a Fundamental Change, the Company will offer to purchase any and all of
the Notes. The Holder has the right, at such Holder’s option, to accept such offer and require the
Company to purchase for cash all of such Holder’s Notes or any portion thereof (in principal
amounts of $1,000 or multiples thereof) on the Fundamental Change Purchase Date at a price equal to
the Fundamental Change Purchase Price.

     Subject to the provisions of the Indenture, the Holder hereof has the right, at its option,
prior to the close of business on the Business Day immediately preceding the Maturity Date, to
convert any Notes or portion thereof that is $1,000 or a multiple thereof, into shares of Common
Stock (together with cash in lieu of fractional shares) at a Conversion Rate specified in the
Indenture, as adjusted from time to time as provided in the Indenture.

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

2

 

ABBREVIATIONS

     The following abbreviations, when used in the inscription of the face of this Note, shall be
construed as though they were written out in full according to applicable laws or regulations:

TEN COM = as tenants in common

UNIF GIFT MIN ACT = Uniform Gifts to Minors Act

CUST = Custodian

TEN ENT = as tenants by the entireties

JT TEN = joint tenants with right of survivorship and not as tenants in common

     Additional abbreviations may also be used though not in the above list.

3

 

SCHEDULE A

MANNKIND CORPORATION

5.75% Convertible Senior Notes due 2015

     The initial principal amount of this Global Note is $100,000,000. The following increases or
decreases in this Global Note have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Principal Amount of	 	Signature of
	 	 	 	 	 	 	this Global Note	 	authorized
	 	 	Amount of decrease	 	Amount of increase	 	following such	 	signatory of
	 	 	in Principal Amount	 	in Principal Amount	 	decrease or	 	Trustee or
	Date of Exchange	 	of this Global Note	 	of this Global Note	 	increase	 	Custodian
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 

4

 

ATTACHMENT 1

[FORM OF NOTICE OF CONVERSION]

5.75% Convertible Senior Note due 2015

To: MannKind Corporation

     The undersigned registered owner of this Note hereby exercises the option to convert this
Note, or the portion hereof (that is $1,000 principal amount or a multiple thereof) below
designated, and the Company, at its election, may deliver shares of Common Stock (together with
cash in lieu of fractional shares) in accordance with the terms of the Indenture referred to in
this Note, and directs that any shares of Common Stock issuable and deliverable upon such
conversion, and any Notes representing any unconverted principal amount hereof, be issued and
delivered to the registered Holder hereof unless a different name has been indicated below. If any
shares of Common Stock or any portion of this Note not converted are to be issued in the name of a
Person other than the undersigned, the undersigned will pay all transfer taxes payable with respect
thereto. Any amount required to be paid to the undersigned on account of interest accompanies this
Note.

	 	 	 	 	 	 	 

	Dated:
	 	 	 	 	 	 
	 

	 	 

	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

Signature(s)
	 	 

	 	 	 

	 

Signature Guarantee

	 	 
	 
	Signature(s) must be guaranteed
	 	 
	by an eligible Guarantor Institution
	 	 
	(banks, stock brokers, savings and
	 	 
	loan associations and credit unions)
	 	 
	with membership in an approved
	 	 
	signature guarantee medallion program
	 	 
	pursuant to Securities and Exchange

Commission Rule 17Ad-15 if
	 	 
	shares of Common Stock are to be issued, or
	 	 
	Notes to be delivered, other than
	 	 
	to and in the name of the registered Holder.
	 	 

 

 

	 	 	 

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

(Name)

	 	 
	 
	 
	 	 
	 

(Street Address)

	 	 
	 
	 
	 	 
	 

(City, State and Zip Code)

	 	 
	Please print name and address
	 	 

	 	 	 	 	 

	 

	 	Principal amount to be converted (if less than all):	 	 
	 

	 	$                    ,000	 	 
	 
	 

	 	NOTICE: The above signature(s) of the Holder(s)	 	 
	 

	 	hereof must correspond with the name as written upon	 	 
	 

	 	the face of the Note in every particular without	 	 
	 

	 	alteration or enlargement or any change whatever.	 	 
	 
	 
	 

	 	 

Social Security or Other Taxpayer
	 	 
	 

	 	Identification Number	 	 

 

 

ATTACHMENT 2

[FORM OF FUNDAMENTAL CHANGE PURCHASE NOTICE]

5.75% Convertible Senior Note due 2015

To: MannKind Company

The undersigned registered owner of this Note hereby acknowledges receipt of a notice from MannKind
Corporation (the “Company”) as to the occurrence of a Fundamental Change with respect to the
Company, offering to purchase the Notes and specifying the Fundamental Change Purchase Date. The
undersigned registered owner of this Note hereby accepts the Company’s offer to purchase the Notes
and instructs the Company to pay to the registered Holder hereof in accordance with the applicable
provisions of the Indenture referred to in this Note (1) the entire principal amount of this Note,
or the portion thereof (that is $1,000 principal amount or a multiple thereof) below designated,
and (2) if such Fundamental Change Purchase Date does not fall during the period after a Regular
Record Date and on or prior to the corresponding Interest Payment Date, accrued and unpaid interest
thereon to, but excluding, such Fundamental Change Purchase Date.

     In the case of certificated Notes, the certificate numbers of the Notes to be purchased are as
set forth below:

	 	 	 	 	 

	Dated:
	 	 	 	 
	 

	 	 
	 	 

	 	 	 	 	 

	 

	 	 

Signature(s)
	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 

Social Security or Other Taxpayer
	 	 
	 

	 	Identification Number	 	 
	 
	 	 	 	 
	 

	 	Principal amount to be repaid (if less than all):	 	 
	 

	 	$                    ,000	 	 
	 
	 	 	 	 
	 

	 	NOTICE: The above signature(s) of the Holder(s)	 	 
	 

	 	hereof must correspond with the name as written upon	 	 
	 

	 	the face of the Note in every particular without	 	 
	 

	 	alteration or enlargement or any change whatever.	 	 

 

 

ATTACHMENT 3

[FORM OF ASSIGNMENT AND TRANSFER]

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

In connection with any transfer of the within Note occurring prior to the Resale Restriction
Termination Date, as defined in the Indenture governing such Note, the undersigned confirms that
such Note is being transferred:

o To MannKind Corporation or a subsidiary thereof; or

o Pursuant to the registration statement that has become or been declared effective under the
Securities Act of 1933, as amended; or

o Pursuant to and in compliance with Rule 144A under the Securities Act of 1933, as amended; or

o Pursuant to and in compliance with Rule 144 under the Securities Act of 1933, as amended; or

o Pursuant to another available exemption from registration under the Securities Act of 1933, as
amended.

 

 

	 	 	 	 	 

	Dated:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	Signature(s)	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	Signature Guarantee	 	 

Signature(s) must be guaranteed by an

eligible Guarantor Institution (banks, stock

brokers, savings and loan associations and

credit unions) with membership in an approved

signature guarantee medallion program pursuant

to Securities and Exchange Commission

Rule 17Ad-15 if Notes are to be delivered, other

than to and in the name of the registered Holder.

NOTICE: The signature on the assignment must correspond with the name as written upon the face of
the Note in every particular without alteration or enlargement or any change whatever.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]