Document:

Exhibit 4.3

 

Exhibit 4.3

 

HORIZON LINES, INC.

ISSUER

 

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

TRUSTEE

 

INDENTURE

Dated as of August 8, 2007

 

4.25% CONVERTIBLE SENIOR NOTES DUE 2012

 

 

 

HORIZON LINES, INC.

Certain Sections of this Indenture relating to Sections 310 through 318

of the Trust Indenture Act of 1939:

	 	 	 
	Trust Indenture	 	 
	Act Section	 	Indenture Section
	§ 310(a)(1)
	 	6.09
	(a)(2)
	 	6.09
	(a)(3)
	 	Not Applicable
	(a)(4)
	 	Not Applicable
	(b)
	 	6.08
	 
	 	6.10
	§ 311(a)
	 	6.13
	(b)
	 	6.13
	§ 312(a)
	 	9.01
	 
	 	9.02(a)
	(b)
	 	9.02(b)
	(c)
	 	9.02(c)
	§ 313(a)
	 	9.03(a)
	(a)(4)
	 	1.01
	 
	 	10.04
	(b)
	 	9.03(a)
	(c)
	 	9.03(a)
	(d)
	 	9.03(a)
	§ 314(a)
	 	9.04
	(b)
	 	Not Applicable
	(c)(1)
	 	1.05
	(c)(2)
	 	1.05
	(c)(3)
	 	Not Applicable
	(d)
	 	Not Applicable
	(e)
	 	1.05
	§ 315(a)
	 	6.01
	(b)
	 	6.02
	(c)
	 	6.01
	(d)
	 	6.01
	(e)
	 	5.15
	§ 316(a)
	 	1.01
	(a)(1)(A)
	 	5.02
	 
	 	5.06
	(a)(1)(B)
	 	5.04
	(a)(2)
	 	Not Applicable
	(b)
	 	5.03
	(c)
	 	1.02
	§ 317(a)(1)
	 	5.07
	(a)(2)
	 	5.08
	(b)
	 	10.05
	§ 318(a)
	 	1.08

 

			
	Note:	 	This reconciliation and tie shall not, for any purpose, be deemed to be a part of this
Indenture.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE 1
	 	 	 	 
	Definitions and Other Provisions of General Application
	 	 	 	 
	 
	 	 	 	 
	SECTION 1.01 Definitions
	 	 	1	 
	SECTION 1.02 Acts of Holders of Notes
	 	 	15	 
	SECTION 1.03 Notices, Etc. To The Trustee And Company
	 	 	16	 
	SECTION 1.04 Effect of Headings and Table of Contents
	 	 	17	 
	SECTION 1.05 Compliance Certificates and Opinions
	 	 	17	 
	SECTION 1.06 Form of Documents Delivered to Trustee
	 	 	17	 
	SECTION 1.07 Notice to Holders; Waiver
	 	 	18	 
	SECTION 1.08 Conflict With Trust Indenture Act
	 	 	18	 
	SECTION 1.09 Successors and Assigns
	 	 	19	 
	SECTION 1.10 Separability Clause
	 	 	19	 
	SECTION 1.11 Benefits of Indenture
	 	 	19	 
	SECTION 1.12 Governing Law
	 	 	19	 
	SECTION 1.13 Legal Holidays
	 	 	19	 
	SECTION 1.14 Force Majeure
	 	 	20	 
	 
	 	 	 	 
	ARTICLE 2
	 	 	 	 
	Note Forms
	 	 	 	 
	 
	 	 	 	 
	SECTION 2.01 Form Generally
	 	 	20	 
	SECTION 2.02 Form of Note
	 	 	20	 
	SECTION 2.03 Form of Notice of Conversion
	 	 	32	 
	SECTION 2.04 Form of Assignment
	 	 	33	 
	 
	 	 	 	 
	ARTICLE 3
	 	 	 	 
	The Notes
	 	 	 	 
	 
	 	 	 	 
	SECTION 3.01 Title And Terms
	 	 	34	 
	SECTION 3.02 Denominations
	 	 	34	 
	SECTION 3.03 Execution, Authentication, Delivery and Dating
	 	 	35	 
	SECTION 3.04 Global Notes; Non-Global Notes; Book-entry Provisions
	 	 	35	 
	SECTION 3.05 Persons Deemed Owners
	 	 	37	 
	SECTION 3.06 Mutilated, Destroyed, Lost and Stolen Notes
	 	 	37	 
	SECTION 3.07 Payment of Interest; Interest Rights Preserved
	 	 	38	 
	SECTION 3.08 Cancellation
	 	 	39	 
	SECTION 3.09 Computation of Interest
	 	 	40	 
	 
	 	 	 	 
	ARTICLE 4
	 	 	 	 
	Discharge
	 	 	 	 
	 
	 	 	 	 
	SECTION 4.01 Discharge of Liability on Notes
	 	 	40	 

i

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 4.02 Reinstatement
	 	 	41	 
	SECTION 4.03 Officer’s Certificate; Opinion of Counsel
	 	 	41	 
	 
	 	 	 	 
	ARTICLE 5
	 	 	 	 
	Remedies
	 	 	 	 
	 
	 	 	 	 
	SECTION 5.01 Events of Default
	 	 	41	 
	SECTION 5.02 Acceleration of Maturity; Rescission and Annulment
	 	 	43	 
	SECTION 5.03 Unconditional Right of Holders to Receive Principal and Interest and to
Convert
	 	 	45	 
	SECTION 5.04 Waiver of Past Defaults
	 	 	45	 
	SECTION 5.05 Waiver of Stay, Usury or Extension Laws
	 	 	45	 
	SECTION 5.06 Control by Holders
	 	 	45	 
	SECTION 5.07 Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	46	 
	SECTION 5.08 Trustee May File Proofs of Claim
	 	 	46	 
	SECTION 5.09 Trustee May Enforce Claims Without Possession of Notes
	 	 	47	 
	SECTION 5.10 Application of Money Collected
	 	 	47	 
	SECTION 5.11 Limitation on Suits
	 	 	48	 
	SECTION 5.12 Restoration of Rights and Remedies
	 	 	48	 
	SECTION 5.13 Rights and Remedies Cumulative
	 	 	49	 
	SECTION 5.14 Delay or Omission Not Waiver
	 	 	49	 
	SECTION 5.15 Undertaking for Costs
	 	 	49	 
	 
	 	 	 	 
	ARTICLE 6
	 	 	 	 
	The Trustee
	 	 	 	 
	 
	 	 	 	 
	SECTION 6.01 Certain Duties and Responsibilities
	 	 	49	 
	SECTION 6.02 Notice of Defaults
	 	 	50	 
	SECTION 6.03 Certain Rights of Trustee
	 	 	51	 
	SECTION 6.04 Not Responsible for Recitals or Issuance of Notes
	 	 	52	 
	SECTION 6.05 May Hold Notes
	 	 	53	 
	SECTION 6.06 Money Held In Trust
	 	 	53	 
	SECTION 6.07 Compensation and Reimbursement
	 	 	53	 
	SECTION 6.08 Conflicting Interests
	 	 	54	 
	SECTION 6.09 Corporate Trustee Required; Eligibility
	 	 	54	 
	SECTION 6.10 Resignation and Removal; Appointment Of Successor
	 	 	54	 
	SECTION 6.11 Acceptance of Appointment by Successor
	 	 	56	 
	SECTION 6.12 Merger, Conversion, Consolidation or Succession to Business
	 	 	56	 
	SECTION 6.13 Preferential Collection of Claims Against Company
	 	 	56	 
	SECTION 6.14 Appointment of Authenticating Agent
	 	 	57	 
	 
	 	 	 	 
	ARTICLE 7
	 	 	 	 
	Consolidation, Merger, Conveyance, Transfer or Lease
	 	 	 	 
	 
	 	 	 	 
	SECTION 7.01 Company May Consolidate, Etc., Only on Certain Terms
	 	 	59	 
	SECTION 7.02 Successor Substituted
	 	 	59	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE 8
	 	 	 	 
	Supplemental Indentures
	 	 	 	 
	 
	 	 	 	 
	SECTION 8.01 Supplemental Indentures Without Consent of Holders of Notes
	 	 	60	 
	SECTION 8.02 Supplemental Indentures With Consent of Holders of Notes
	 	 	61	 
	SECTION 8.03 Notice of Supplemental Indentures
	 	 	62	 
	SECTION 8.04 Effect of Supplemental Indentures
	 	 	62	 
	SECTION 8.05 Conformity with Trust Indenture Act
	 	 	62	 
	 
	 	 	 	 
	ARTICLE 9
	 	 	 	 
	Holders Lists and by Trustee and Company
	 	 	 	 
	 
	 	 	 	 
	SECTION 9.01 Company to Furnish Trustee Names and Addresses of Holders
	 	 	62	 
	SECTION 9.02 Preservation of Information
	 	 	63	 
	SECTION 9.03 Communication to Holders
	 	 	63	 
	 
	 	 	 	 
	ARTICLE 10
	 	 	 	 
	Covenants
	 	 	 	 
	 
	 	 	 	 
	SECTION 10.01 Payment of Principal and Interest
	 	 	64	 
	SECTION 10.02 Maintenance of Offices or Agencies
	 	 	64	 
	SECTION 10.03 Existence
	 	 	65	 
	SECTION 10.04 Statement by Officers as to Default
	 	 	65	 
	SECTION 10.05 Money for Note Payments to Be Held in Trust
	 	 	65	 
	SECTION 10.06 Reports by Company
	 	 	66	 
	SECTION 10.07 Delivery of Certain Information
	 	 	67	 
	SECTION 10.08 Registration Rights
	 	 	67	 
	 
	 	 	 	 
	ARTICLE 11
	 	 	 	 
	Repurchase of Notes
	 	 	 	 
	 
	 	 	 	 
	SECTION 11.01 Right to Require Repurchase Upon a Fundamental Change
	 	 	68	 
	 
	 	 	 	 
	ARTICLE 12
	 	 	 	 
	Conversion of Notes
	 	 	 	 
	 
	 	 	 	 
	SECTION 12.01 Conversion Privilege and Conversion Rate
	 	 	72	 
	SECTION 12.02 Exercise of Conversion Privilege
	 	 	76	 
	SECTION 12.03 Restrictions on Conversion Rights
	 	 	80	 
	SECTION 12.04 Fractions of Shares
	 	 	80	 
	SECTION 12.05 Adjustment of Conversion Rate
	 	 	81	 
	SECTION 12.06 Notice of Adjustments of Conversion Rate
	 	 	92	 
	SECTION 12.07 Company to Reserve Common Stock
	 	 	93	 
	SECTION 12.08 Taxes on Conversions
	 	 	93	 
	SECTION 12.09 Certain Covenants
	 	 	93	 
	SECTION 12.10 Cancellation of Converted Notes
	 	 	94	 
	SECTION 12.11 Company Responsible for Making Calculations
	 	 	94	 

iii

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 12.12 Provision in Case of Effect of Reclassification,
Consolidation, Merger or Sale
	 	 	94	 
	SECTION 12.13 Responsibility of Trustee for Conversion Provisions
	 	 	96	 

iv

 

     INDENTURE, dated as of August 8, 2007 (the “Indenture”), between HORIZON LINES, INC., a
corporation duly organized and existing under the laws of the State of Delaware, having its
principal office at 4046 Colony Road, Suite 200, Charlotte, North Carolina 28211 (herein called
the “Company”), and THE BANK OF NEW YORK TRUST COMPANY, N.A., as Trustee hereunder (herein called
the “Trustee”).

RECITALS OF THE COMPANY

     The Company has duly authorized the creation of an issue of its 4.25% Convertible Senior Notes
due 2012 (herein called the “Notes”) of substantially the tenor and amount hereinafter set forth,
and to provide therefor the Company has duly authorized the execution and delivery of this
Indenture.

     All things necessary to make the Notes, when the Notes are executed by the Company and
authenticated and delivered hereunder, the valid obligations of the Company, and to make this
Indenture a valid agreement of the Company, in accordance with their and its terms, have been done.
Further, all things necessary to duly authorize the issuance of the Common Stock of the Company
issuable upon the conversion of the Notes, and to duly reserve for issuance the number of shares of
Common Stock issuable upon such conversion, have been done.

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

     For and in consideration of the premises and the purchase of the Notes by the Holders thereof,
it is mutually covenanted and agreed, for the equal and proportionate benefit of all Holders of the
Notes, as follows:

ARTICLE 1

Definitions and Other Provisions of General Application

     SECTION 1.01 Definitions.

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

     (a) capitalized terms used but not defined herein shall have the respective meanings assigned
to them in the Trust Indenture Act;

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

     (c) all accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with generally accepted accounting principles in the United States, and, except as
otherwise herein expressly provided, the term “generally accepted accounting principles” with
respect to any

1

 

computation required or permitted hereunder shall mean such accounting principles as are
generally accepted at the date of such computation; and

     (d) all other terms used in this Indenture, which are defined in the Trust Indenture Act or
which 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 the Trust Indenture Act and in the Securities Act as in force at the date of the execution of
this Indenture. The words “herein,” “hereof” and “hereunder” and other words of similar import
refer to this Indenture as a whole and not to any particular Article, Section or other subdivision.

     “Act” when used with respect to any Holder of a Note, has the meaning specified in Section
1.02.

     “Additional Notes” means an unlimited amount of Notes (other than the Initial Notes) issued
under this Indenture in accordance with Section 3.04(a),  as part of the same series as the Initial
Notes.

     “Additional Shares” has the meaning specified in Section 12.01(e).

     “Adjustment Determination Date” has the meaning specified in Section 12.05(k).

     “Adjustment Event” has the meaning specified in Section 12.05(k).

     “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 the management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing.

     “Agent Member” means any member of, or participant in, the Depositary.

     “Applicable Procedures” means, with respect to any transfer or transaction involving a Global
Note or beneficial interest therein, the rules and procedures of DTC or any successor Depository,
in each case to the extent applicable to such transaction and as in effect from time to time.

     “Authenticating Agent” means any Person authorized by the Trustee pursuant to Section 6.14 to
act on behalf of the Trustee to authenticate Notes.

     “Board of Directors” means either the board of directors of the Company or any duly authorized
committee of that board.

2

 

     “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, and delivered to the Trustee.

     “Business Day” means any day other than a Saturday, a Sunday or a day on which banking
institutions in the City of New York or at a Place of Payment are authorized by law, regulation or
executive order to remain closed.

     “Capital Stock” means, for any entity, any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in (however designated)
stock issued by that entity.

     “Cash Percentage” has the meaning specified in Section 12.02(a).

     “Code” means the Internal Revenue Code of 1986 as in effect on the date hereof.

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

     “Common Stock” means the Common Stock, par value $0.01 per share, of the Company authorized at
the date of this instrument as originally executed or as such stock may be constituted from time to
time. Subject to the provisions of 12.12, shares issuable upon conversion of Notes shall include
only shares of Common Stock or shares of any class or classes of common stock resulting from any
reclassification or reclassifications thereof; provided, however, that if at any time there shall
be more than one such resulting class, the shares so issuable on conversion of Notes shall include
shares of all such classes, and the shares of each such class then so issuable shall be
substantially in the proportion which the total number of shares of such class resulting from all
such reclassifications bears to the total number of shares of all such classes resulting from all
such reclassifications.

     “common stock” includes any stock of any class of Capital Stock which has no preference in
respect of dividends or of amounts payable in the event of any voluntary or involuntary
liquidation, dissolution or winding up of the issuer thereof and which is not subject to redemption
by the issuer thereof.

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

3

 

     “Company Request” or “Company Order” means a written request or order signed in the name of
the Company by its Chairman of the Board, its Chief Executive Officer, its President, its Chief
Financial Officer, Treasurer or a Vice President.

     “Continuing Directors” means (i) individuals who on the Issue Date constituted the Board of
Directors and (ii) any new directors whose election to the Board of Directors or whose nomination
for election by the stockholders of the Company was approved by at least a majority of the
directors then still in office (or a duly constituted committee thereof) either who were directors
on the Issue Date or whose election or nomination for election was previously so approved.

     “Conversion Agent” means any Person authorized by the Company to convert Notes in accordance
with Article 12. The Company has initially appointed the Trustee as its Conversion Agent pursuant
to Section 10.02.

     “Conversion Date” has the meaning specified in Section 12.02(c).

     “Conversion Obligation” means the obligation of the Company to deliver pursuant hereto, the
consideration due under Article 12 upon a conversion of the Notes in accordance herewith.

     “Conversion Price” means at any time the amount equal to $1,000 divided by the then current
Conversion Rate.

     “Conversion Rate” has the meaning specified in Section 12.01(a).

     “Conversion Retraction Period” has the meaning specified in Section 12.02(c).

     “Corporate Trust Office” means the office of the Trustee at which at any particular time the
trust created by this Indenture shall be principally administered, (which at the date of this
Indenture is located at 10161 Centurion Parkway, Jacksonville, Florida 32256, Attention: Corporate
Trust Division — Corporate Finance Unit) or such other address as the Trustee may designate from
time to time by notice to the Holders and the Company, or the principal corporate trust office of
any successor Trustee (or such other address as such successor Trustee may designate from time to
time by notice to the Holders and the Company).

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

     “Current Market Price” has the meaning specified in Section 12.05(f).

     “Daily Cash Amount” has the meaning specified in the definition of Daily Settlement Amount.

     “Daily Conversion Value” means, for each of the 50 consecutive VWAP Trading Days during the
Observation Period, one-fiftieth (1/50) of the product of

4

 

(a) the applicable Conversion Rate and (b) the Daily VWAP of the Common Stock (or the
Reference Property pursuant to Section 12.12(b)) on such VWAP Trading Day, as determined by the
Company. Any such determination by the Company shall be conclusive absent manifest error.

     “Daily Settlement Amount” means, for each of the 50 VWAP Trading Days during the Observation
Period,

     (i) an amount of cash equal to the lesser of (x) $20.00 and (y) the Daily Conversion
Value relating to such VWAP Trading Day (the “Daily Cash Amount”); plus

     (ii) if such Daily Conversion Value exceeds $20.00, at the Company’s election, either
(i) a number of shares (the “Deliverable Shares”) of Common Stock equal to (A) the
difference between such Daily Conversion Value and $20.00, divided by (B) the Daily VWAP
of the Common Stock for such VWAP Trading Day, subject to adjustment pursuant to Section
12.05(o), (ii) an amount of cash equal to the difference between such Daily Conversion
Value and $20.00, or (iii) any combination elected by the Company of shares of Common
Stock and cash in an amount equal to such excess of such Daily Conversion Value over
$20.00.

     “Daily VWAP” means for each of the 50 consecutive VWAP Trading Days during the Observation
Period, the per share volume-weighted average price as displayed under the heading “Bloomberg VWAP”
on Bloomberg page HRZ.N<equity> AQR (or any equivalent successor page) in respect of the
period from the scheduled open of trading on the principal trading market for the Common Stock to
the scheduled close of trading on such market on such VWAP Trading Day (or if such volume-weighted
average price is unavailable, the market value of one share of Common Stock on such VWAP Trading
Day using a volume-weighted method as determined by a nationally recognized independent investment
banking firm retained for this purpose by the Company).

     “Default” means any event which is, or after notice or lapse of time or both would become, an
Event of Default pursuant to Section 5.01.

     “Defaulted Interest” has the meaning specified in Section 3.07.

     “Deliverable Shares” has the meaning specified in the definition of “Daily Settlement”
amount.

     “Delivery Date” means, with (i) respect to any Notes converted on or after the 65th Scheduled
Trading Day prior to the Maturity Date, the 10th Scheduled Trading Day immediately following the
final day of the applicable Observation Period and, (ii) with respect to any other conversion, the
third

5

 

Scheduled Trading Day immediately following the final day of the applicable Observation
Period.

     “Depositary” means, with respect to Notes issuable in whole or in part in the form of one or
more Global Notes, a clearing agency registered under the Exchange Act that is designated to act as
Depositary for such Notes as contemplated by Section 3.04.

     “Distributed Property” has the meaning specified in Section 12.05(c).

     “Dividend Threshold Amount” has the meaning specified in Section 12.05(d).

     “Dollar,” “U.S. $” or “$” means a dollar or other equivalent unit in such coin or currency of
the United States as at the time shall be legal tender for the payment of public and private debts.

     “DTC” means The Depository Trust Company, a New York corporation, or any successor.

     “Effective Date” means the date on which a Fundamental Change occurs or becomes effective.

     “Effectiveness Period” has the meaning specified in Section 2.02.

     “Event of Default” has the meaning specified in Section 5.01.

     “Excess Shares” has the meaning specified in the Company’s Amended and Restated Certificate of
Incorporation, provided that any amendment to decrease the “Permitted Percentage” as defined
therein shall, solely with respect to such decrease, be given no effect with respect to the
definition of “Excess Shares” hereunder.

     “Ex-Date” means, with respect to any issuance or distribution on the Common Stock or any other
equity security, the first date on which the shares of Common Stock or such other equity security
trade on the relevant exchange or in the relevant market, regular way, without the right to receive
such issuance or distribution.

     “Exchange Act” means the Securities Exchange Act of 1934 and any statute successor thereto, in
each case as amended from time to time.

     “Extension Fee” has the meaning specified in Section 5.02.

     “Extension Right” has the meaning specified in Section 5.02.

     “Fair Market Value” has the meaning specified in Section 12.05(f).

6

 

     “Final Observation Period” means the period described in clause (1) of the definition of
“Observation Period.”

     “Fundamental Change” will be deemed to have occurred at the time after the Notes are
originally issued that any of the following occurs:

     (1) any Person acquires 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 the Person to exercise 50% or more of the total
voting power of all shares of the Company’s Capital Stock entitled to vote generally in
elections of directors, other than an acquisition by the Company, any of the Company’s
Subsidiaries or any of the Company’s employee benefit plans; (for purposes of this clause
(1), whether a Person is a “beneficial owner” shall be determined in accordance with Rule
13d-3 under the Exchange Act); or

     (2) the Company (i) merges or consolidates with or into any other Person (other than
a Subsidiary), another Person merges with or into the Company, or the Company conveys,
sells, transfers or leases all or substantially all of the Company’s assets to another
Person or (ii) engages in any recapitalization, reclassification or other transaction in
which all or substantially all of the Company’s Common Stock is exchanged for or converted
into cash, securities or other property, in each case, other than any merger or
consolidation:

     (a) that does not result in a reclassification, conversion, exchange or
cancellation of the Company’s outstanding Common Stock; or

     (b) which is effected solely to change the Company’s jurisdiction of
incorporation and results in a reclassification, conversion or exchange of
outstanding shares of the Company’s Common Stock solely into shares of common
stock of the surviving entity; or

     (3) at any time the Continuing Directors do not constitute a majority of the
Company’s Board of Directors (or, if applicable, a successor Person to the Company); or

     (4) the Company is liquidated or dissolved or holders of the Company’s Common Stock
approve any plan or proposal for the Company’s liquidation or dissolution; or

     (5) if shares of Common Stock, or shares of any other Capital Stock into which the
Notes are convertible pursuant to the terms of this

7

 

Indenture, are not listed for trading
or quoted, as applicable, on any of the New York Stock Exchange, The NASDAQ Global Market or The NASDAQ Global Select Market
(or any of their respective successors).

     “Fundamental Change Repurchase Date” has the meaning specified in Section 11.01(a).

     “Fundamental Change Repurchase Notice” has the meaning specified in Section 11.01)(a).

     “Fundamental Change Repurchase Price” has the meaning specified in Section 11.01(a).

     “Fundamental Change Repurchase Right Notice” has the meaning specified in Section 11.01(b).

     “Global Note” means a Note that is registered in the Register in the name of a Depositary or a
nominee thereof.

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

     “Indebtedness” means any and all obligations of a Person for money borrowed which, in
accordance with U.S. generally accepted accounting principles, would be reflected on the balance
sheet of such Person as a liability on the date as of which Indebtedness is to be determined.

     “Indenture” has the meaning specified in the first paragraph of this instrument.

     “Initial Notes” means the first $330,000,000 aggregate principal amount of the Notes issued
under this Indenture on the date hereof. The Initial Notes and the Additional Notes shall be
treated as a single class for all purposes under this Indenture, and unless the context otherwise
requires, all references to the Notes shall include the Initial Notes and any Additional Notes.

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

     “Interest Payment Date” means February 15 and August 15 of each year beginning February 15,
2008.

     “Issue Date” means August 8, 2007.

     “Jones Act Restrictions” means any restrictions on the ownership or transfer of Common Stock
applicable to Persons who are not United States Citizens (i) imposed by the Jones Act, Title 46
U.S.C §§ 50101 et seq., (ii) contained

8

 

in the Company’s Amended and Restated Certificate of
Incorporation or other
charter documents or (iii) otherwise voluntarily imposed by the Company for the purpose of
complying with Maritime Laws.

     “Last Reported Sale Price” means, with respect to the Common Stock or any other security for
which a Last Reported Sale Price must be determined, on any date, the closing sale price per share
of the Common Stock or unit of such other security (or, if no closing sale price is reported, the
average of the last bid and last ask prices or, if more than one in either case, the average of the
average last bid and the average last ask prices) on such date as reported in composite
transactions for the principal United States national or regional securities exchange on which it
is then traded, if any. If the Common Stock or such other security is not listed for trading on a
United States national or regional securities exchange on the relevant date, the Last Reported Sale
Price shall be the average of the last quoted bid and ask prices per share of Common Stock or such
other security in the over-the-counter market on the relevant date, as reported by the National
Quotation Bureau or similar organization. In absence of such quotation, the Last Reported Sale
Price shall be the average of the mid-point of the last bid and ask prices for the Common Stock or
such other security on the relevant date from each of at least three nationally recognized
independent investment banking firms, which may include any or all of the Initial Purchasers,
selected from time to time by the Company for that purpose. The Last Reported Sale Price shall be
determined without reference to extended or after hours trading. Any such determination shall be
made by the Company and shall be conclusive absent manifest error.

     “Make-Whole Fundamental Change” means any transaction or event that constitutes a Fundamental
Change pursuant to clauses (1), (2), (4) or (5) under the definition of “Fundamental Change.”

     “Make-Whole Reference Date” means, with respect to any Make-Whole Fundamental Change, the date
on which such Make-Whole Fundamental Change occurs or becomes effective; provided that solely for
the purposes of determining the number of Additional Shares pursuant to Section 12.01(e), the
“Make-Whole Reference Date” with respect to any Make-Whole Fundamental Change shall be deemed to be
the earlier of (i) the date on which such Make-Whole Fundamental Change occurs or becomes effective
or (ii) the date of the first public announcement of such Make-Whole Fundamental Change by the
Company or any counterparty to such Make-Whole Fundamental Change.

     “Maritime Laws” means collectively the Merchant Marine Act, 1920, the Shipping Act, 1916, any
successor statutes thereto, and the regulations promulgated thereunder, in each case as amended or
supplemented from time to time.

9

 

     “Market
Capitalization” has the meaning specified in Section 12.05(f).

     “Market Disruption Event” means the occurrence or existence on any Scheduled Trading Day for
the Common Stock 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 futures contracts
relating to the Common Stock, and such suspension or limitation occurs or exists at any time within
the 30 minutes prior to the closing time of the relevant exchange on such day.

     “Maturity,” when used with respect to any Notes, means the date on which the principal of such
Notes becomes due and payable as therein or herein provided, whether on the Maturity Date or by
declaration of acceleration, exercise of the repurchase right set forth in Article 11 or otherwise.

     “Maturity Date,” means, with respect to the Notes, August 15, 2012.

     “Measurement Period” has the meaning specified in Section 12.01(a).

     “Merger Event” has the meaning specified in Section 12.12.

     “Notes” has the meaning ascribed to it in the first paragraph under the caption “Recitals of
the Company.” Unless the context otherwise requires, all references to the Notes shall include the
Initial Notes and any Additional Notes.

     “Notice of Conversion” has the meaning specified in Section 12.02.

     “Notice of Jones Act Restrictions” has the meaning specified in Section 12.02(c).

     “Observation Period” means, with respect to any Notes:

     (1) with respect to any Conversion Date that occurs on or after the 65th
Scheduled Trading Day prior to the Maturity Date, the 50 consecutive VWAP Trading Day
period beginning on and including the 59th Scheduled Trading Day prior to the Maturity
Date (whether or not the Maturity Date is a Scheduled Trading Day) (or if such day is not
a VWAP Trading Day, the next succeeding VWAP Trading Day); and

     (2) in all other instances, the 50 consecutive VWAP Trading Day period beginning on
and including the third VWAP Trading Day after the related Conversion Date in respect of
such Notes or, if the Company provides a Notice of Jones Act Restrictions to the
converting Holder pursuant to Section 12.02(c), the second VWAP Trading Day after the
Conversion Retraction Period ends.

     “Offering Circular “ means the final offering circular dated August 1, 2007 used in connection
with the offering of the Notes.

10

 

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

     “Opinion of Counsel” means a written opinion of counsel, who may be an employee of or counsel
to the Company, and who shall be reasonably acceptable to the Trustee.

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

     (i) Notes theretofore canceled by the Trustee or delivered to the Trustee for
cancellation;

     (ii) Notes for the payment of which money in the necessary amount has been
theretofore deposited with the Trustee or any Paying Agent (other than the Company) in
trust or set aside and segregated in trust by the Company (if the Company shall act as its
own Paying Agent) for the Holders of such Notes in accordance with the terms of such
Indenture;

     (iii) Notes which have been paid pursuant to Section 3.06 or in exchange for or in
lieu of which other Notes have been authenticated and delivered pursuant to this
Indenture;

     (iv) Notes converted into Common Stock pursuant to Article 12; and

     (v) Notes repurchased pursuant to Article 11;

provided, however, that, in determining whether the Holders of the requisite principal amount of
Outstanding Notes are present at a meeting of Holders of Notes for quorum purposes or have given
any request, demand, authorization, direction, notice, consent or waiver hereunder, Notes owned by
the Company or any other obligor upon the Notes or any Affiliate of the Company or such other
obligor shall be disregarded and deemed not to be Outstanding, except that, in determining whether
the Trustee shall be protected in relying upon any such determination as to the presence of a
quorum or upon any such request, demand, authorization, direction, notice, consent or waiver, only
Notes which a Responsible Officer of the Trustee has been notified in writing to be so owned shall
be so disregarded. Notes so owned which have been pledged in good faith may be regarded as
Outstanding if the pledgee is not the Company or any other obligor upon the Notes or any Affiliate
of the Company or such other obligor, and

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the Trustee shall be protected in relying upon an
Officer’s Certificate to such effect.

     “Paying Agent” means any Person authorized by the Company to pay the principal of or interest
on any Notes on behalf of the Company and, except as otherwise specifically set forth herein, such
term shall include the Company if it shall act as its own Paying Agent. The Company has initially
appointed the Trustee as its Paying Agent pursuant to Section 10.02.

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

     “Place of Conversion” has the meaning specified in Section 3.01.

     “Place of Payment” has the meaning specified in Section 3.01.

     “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 3.06 in exchange for or in lieu of a
mutilated, destroyed, lost or stolen Note shall be deemed to evidence the same debt as the
mutilated, destroyed, lost or stolen Note.

     “Principal Portion” in respect of a Note to be converted, means cash in an amount equal to the
sum of Daily Cash Amounts for each of the 50 VWAP Trading Days during an Observation Period.

     “Reference Property” has the meaning specified in Section 12.12(b).

     “Registrable Securities” has the meaning ascribed to it in the Registration Rights Agreement.

     “Registrar” means the Trustee, for the purpose of registering Notes and transfers of Notes.

     “Registration Rights Agreement” means the Registration Rights Agreement, dated as of August 8,
2007, between the Company and the Initial Purchasers, as such agreement may be amended from time to
time in accordance with its terms.

     “Regular Record Date” for interest payable in respect of any Note on any Interest Payment Date
means 5:00 p.m. New York time on February 1 or August 1 (whether or not a Business Day), as the
case may be, next preceding such Interest Payment Date.

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     “Relevant Date” has the meaning specified in Section 12.05(f).

     “Repurchase Premium” has the meaning specified in Section 12.05(f).

     “Responsible Officer,” means, with respect to the Trustee, any officer assigned to the
Corporate Trust Division — Corporate Finance Unit (or any
successor division or unit) of the Trustee located at the Corporate Trust Office of the
Trustee, who shall have direct responsibility for the administration of this Indenture and, for the
purposes of the last sentence of Section 6.02, shall also include any other officer of the Trustee
to whom any corporate trust matter is referred because of such officer’s knowledge of and
familiarity with the particular subject.

     “Restricted Security” means any Note or share of Common Stock issuable upon conversion thereof
except any such Note or share of Common Stock that (i) has been effectively registered under the
Securities Act and sold in a manner contemplated by the Shelf Registration Statement, (ii) has been
transferred in compliance with Rule 144 under the Securities Act (or any successor provision
thereto) or is transferable pursuant to paragraph (k) of such Rule 144 (or any successor provision
thereto) or (iii) has otherwise been transferred and a new Note or share of Common Stock not
subject to transfer restrictions under the Securities Act has been delivered by or on behalf of the
Company in accordance with this Indenture.

     “Rule 144A Information” shall have the meaning specified in Section 10.07.

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

     “Securities Act” means the Securities Act of 1933 and any statute successor thereto, in each
case as amended from time to time.

     “Shelf Registration Statement” has the meaning specified in Section 2.02.

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

     “Special Interest” has the meaning specified in Section 2.02. Unless otherwise noted herein,
references to interest on the Notes include Special Interest, if applicable.

     “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the
Trustee pursuant to Section 3.07(a).

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     “Spin-Off” has the meaning specified in Section 12.05(c).

     “Stock Price” means the price per share of Common Stock, as of the Make-Whole Reference Date,
pursuant to which Additional Shares shall be added to the Conversion Rate as set forth in Section
12.01(e), which shall be equal to (i) if holders of Common Stock receive only cash consideration
for their shares of Common Stock in connection with a Make-Whole Fundamental Change, the cash
amount paid per share of Common Stock and (ii) in all other cases, the average of the Last Reported
Sale Prices of the Common Stock over the ten consecutive Trading Day period ending on the Trading
Day preceding the Make-Whole Reference Date.

     “Stock Price Condition” has the meaning specified in Section 12.01(a).

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

     “Trading Day” means a day during which (i) trading in the Common Stock generally occurs and
(ii) there is no Market Disruption Event.

     “Trading Price” with respect to any Notes, on any date of determination, means the average of
the secondary market bid quotations obtained by the Trustee for $2.0 million in principal amount of
such Notes at approximately 3:30 p.m., New York City time, on such determination date from three
independent nationally recognized securities dealers, which may include any or all of the Initial
Purchasers, selected by the Company; provided that if three such bids cannot reasonably be provided
to the Trustee, but two such bids are obtained, then the average of the two bids shall be used, and
if only one such bid is obtained, that one bid shall be used. If at least one bid for $2.0 million
in principal amount of the Notes cannot reasonably be obtained, then the trading price per $1,000
in principal amount of Notes shall be deemed to be less than 98% of the product of the Last
Reported Sale Price of the Common Stock and the applicable Conversion Rate in effect on such date
of determination. Any such determination by the Trustee shall be conclusive absent manifest error.

     “Trading Price Condition” has the meaning specified in Section 12.01.

     “Trigger Event” has the meaning specified in Section 12.05(c).

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

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

     “United States Citizen” means a person who is a “citizen of the United States” under the
Jones Act, Title 46 U.S.C §§ 50101 et seq., and the rules and regulations thereunder.

     “VWAP Market Disruption Event” means (i) a failure by the principal United States national or
regional securities exchange or market on which the Common Stock is listed or admitted to trading
to open for trading during its regular trading session or (ii) the occurrence or existence prior to
1:00 p.m. New York City time on any Scheduled Trading Day for the Common Stock for 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 futures contracts relating to the Common Stock.

     “VWAP Trading Day” means a day during which (i) trading in the Common Stock generally occurs
on the principal United States national or regional securities exchange or market on which the
Common Stock is listed or admitted for trading and (ii) there is no VWAP Market Disruption Event.
If the Common Stock is not so listed or traded, then “VWAP Trading Day” shall mean “Business Day.”

     SECTION 1.02 Acts of Holders of Notes.

     Subject to Article 5 of this Indenture, upon actual receipt by the Trustee from any Holder of
(i) any notice of Default or breach referred to in Section 5.01, if such Default or breach has
occurred and is continuing and the Trustee shall not have given such a notice to the Company, (ii)
any declaration of acceleration referred to in Section 5.02, if an Event of Default has occurred
and is continuing and the Trustee shall not have given such a declaration to the Company, or (iii)
any direction referred to in Section 5.04 or Section 5.06, if the Trustee shall not have taken the
action specified in such direction, then, with respect to clauses (ii) and (iii), a record date
shall automatically and without any action by the Company or the Trustee be set for determining the
Holders entitled to join in such declaration or direction, which record date shall be the close of
business on the 10th calendar day (or, if such day is not a Business Day, the first Business Day

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thereafter) following the calendar day on which the Trustee receives such declaration or direction,
and, with respect to clause (i), the Trustee may set any calendar day as a record date for the
purpose of determining the Holders entitled
to join in such notice of Default. Promptly after such receipt by the Trustee of any such
declaration or direction referred to in clause (ii) or (iii), and promptly after setting any record
date with respect to clause (i), and as soon as practicable thereafter, the Trustee shall notify
the Company and the Holders of any such record date so fixed. The Holders as of 5:00 p.m. New York
City time, on such record date (or their duly appointed agents or proxies), and only such Persons,
shall be entitled to join in such notice, declaration or direction, whether or not such Holders
remain Holders after such time; provided that, unless such notice, declaration or direction shall
have become effective by virtue of Holders of the requisite principal amount of Notes as of 5:00
p.m. New York City time, on such record date (or their duly appointed agents or proxies) having
joined therein (an “Act”) on or prior to the 90th calendar day after such record date, such notice,
declaration or direction shall automatically and without any action by any Person be canceled and
of no further effect. Nothing in this paragraph shall be construed to prevent a Holder (or a duly
appointed agent or proxy thereof) from giving, before or after the expiration of such 90-calendar
day period, a notice, declaration or direction contrary to or different from, or, after the
expiration of such period, identical to, the notice, declaration or direction to which such record
date relates, in which event a new record date in respect thereof shall be set pursuant to this
paragraph. For the avoidance of doubt, nothing in this paragraph shall be construed to render
ineffective any notice, declaration or direction of the type referred to in this paragraph given at
any time to the Trustee or the Company by Holders (or their duly appointed agents or proxies) of
the requisite principal amount of Notes on the date such notice, declaration or direction is so
given.

     SECTION 1.03 Notices, Etc. To The Trustee And Company.

     Any request, demand, authorization, direction, notice, consent, election, waiver or other Act
of Holders of Notes or other document provided or permitted by this Indenture to be made upon,
given or furnished to, or filed with,

     (a) the Trustee by any Holder of Notes or by the Company shall be sufficient for every purpose
hereunder if made, given, furnished or filed in writing (which may be via facsimile) to or with a
Responsible Officer of the Trustee and received at its Corporate Trust Office, Attention: Corporate
Trust Administration – Corporate Finance Unit.

     (b) the Company by the Trustee or by any Holder of Notes shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) if in writing, mailed, first-class postage
prepaid, or telecopied and confirmed by mail, first-class postage prepaid, or delivered by hand or
overnight courier, addressed to the Company at 4046 Colony Road, Suite 200, Charlotte,

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North Carolina 28211, Attention: General Counsel, or at any other address previously furnished in writing
to the Trustee by the Company.

     SECTION 1.04 Effect of Headings and Table of Contents.

     The Article and Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

     SECTION 1.05 Compliance Certificates and Opinions.

     Upon any application or request by the Company to the Trustee to take any action under any
provision of this Indenture (except for the issuance of the Notes on the Issue Date), the Company
shall furnish to the Trustee an Officer’s Certificate stating that all conditions precedent, if
any, provided for in this Indenture relating to the proposed action have been complied with, and an
Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent, if
any, have been complied with, except that, in the case of any such application or request as to
which the furnishing of such certificates or opinions is specifically required by any provision of
this Indenture relating to such particular application or request, no additional certificate or
opinion need be furnished.

     Every certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture shall include:

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

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

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

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

     SECTION 1.06 Form of Documents Delivered to Trustee.

     In any case where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be certified by, or covered by
the opinion of, only one such Person, or that they be so certified or covered by only one document,
but one such Person may certify or give an opinion with respect to some matters and one or more
other

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such Persons as to other matters, and any such Person may certify or give an opinion as to
such matters in one or several documents.

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

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

     SECTION 1.07 Notice to Holders; Waiver.

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

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

     SECTION 1.08 Conflict With Trust Indenture Act.

     If any provision hereof limits, qualifies or conflicts with a provision of the Trust Indenture
Act that is required under such Act to be a part of and govern this

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Indenture, the latter provision
shall control. If any provision of this Indenture modifies or excludes any provision of the Trust
Indenture Act that may be so
modified or excluded, the latter provision shall be deemed to apply to this Indenture as so
modified or to be excluded, as the case may be.

     SECTION 1.09 Successors and Assigns.

     All covenants and agreements in this Indenture by the Company shall bind its successors and
assigns, whether so expressed or not.

     SECTION 1.10 Separability Clause.

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

     SECTION 1.11 Benefits of Indenture.

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

     SECTION 1.12 Governing Law.

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

     SECTION 1.13 Legal Holidays.

     In any case where any Interest Payment Date, Fundamental Change Repurchase Date or the
Maturity Date of any Note or the last date on which a Holder has the right to convert his Notes
shall not be a Business Day, then (notwithstanding any other provision of this Indenture or of the
Notes) payment of interest or principal or conversion of the Notes need not be made on such date,
but may be made on the next succeeding Business Day with the same force and effect as if made on
the Interest Payment Date or Fundamental Change Repurchase Date, or at the Maturity Date, or on
such last day for conversion, provided that no interest shall accrue for the period from and after
such Interest Payment Date, Fundamental Change Repurchase Date or the Maturity Date, as the case
may be. Notwithstanding the foregoing, the right to convert a Note shall cease at the close of
business on the fourth Scheduled Trading Day immediately preceding the Maturity Date.

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     SECTION 1.14 Force Majeure

     The Trustee shall not be responsible or liable for any failure or delay in the performance of
its obligations under this Indenture arising out of or caused, directly or indirectly, by
circumstances beyond its reasonable control, including,
without limitation, acts of God; earthquakes; fire; flood; terrorism; wars and other military
disturbances; sabotage; epidemics; riots; interruptions; loss or malfunctions of utilities,
computer (hardware or software) or communication services; accidents; labor disputes; acts of civil
or military authority and governmental action; provided that the Trustee shall use reasonable
efforts which are consistent with accepted practices in the banking industry to resume performance
as soon as practicable under the circumstances.

ARTICLE 2

Note Forms

     SECTION 2.01 Form Generally.

     The Notes shall be in substantially the form set forth in this Article 2, with such
appropriate insertions, omissions, substitutions and other variations as are required or permitted
by this Indenture, and may have such letters, numbers or other marks of identification and such
legends or endorsements placed thereon as may be required to comply with the rules of any
securities exchange, the Code, and regulations thereunder, or as may, consistent herewith, be
determined by the officers executing such Notes, as evidenced by their execution thereof. The
Company shall furnish any such legends and endorsements to the Trustee in writing. All Notes shall
be in fully registered form.

     Notices of Conversion shall be in substantially the form set forth in Section 2.03.

     The Notes shall be printed, lithographed, typewritten or engraved or produced by any
combination of these methods or may be produced in any other manner permitted by the rules of any
automated quotation system or securities exchange (including on steel engraved borders if so
required by any securities exchange upon which the Notes may be listed) on which the Notes may be
listed for trading, as the case may be, all as determined by the officers executing such Notes, as
evidenced by their execution thereof.

     SECTION 2.02 Form of Note.

[FORM OF FACE OF NOTE]

     The following legend shall appear on the face of each Restricted Security:

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     THIS NOTE AND ANY COMMON STOCK ISSUABLE UPON THE CONVERSION OF THIS NOTE HAVE NOT BEEN
REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE
SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION
THEREFROM. EACH PURCHASER OF
THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE RELYING ON THE EXEMPTION FROM
THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.

     THIS NOTE AND ANY COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE MAY NOT BE OFFERED, SOLD,
PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A)(1) TO A PERSON WHO THE TRANSFEROR REASONABLY BELIEVES
IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT
ACQUIRING FOR ITS OWN ACCOUNT OR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION
MEETING THE REQUIREMENTS OF RULE 144A, (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), (3) TO AN INSTITUTIONAL INVESTOR
THAT IS AN “ACCREDITED INVESTOR” WITHIN THE MEANING OF RULE 501(A)(1), (2), (3) OR (7) OF
REGULATION D UNDER THE SECURITIES ACT PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT (IF AVAILABLE) OR (4) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT, AND (B) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE
UNITED STATES AND OTHER JURISDICTIONS.

     THIS NOTE, ANY COMMON STOCK ISSUABLE UPON ITS CONVERSION AND ANY RELATED DOCUMENTATION MAY BE
AMENDED OR SUPPLEMENTED FROM TIME TO TIME TO MODIFY THE RESTRICTIONS ON RESALES AND OTHER TRANSFERS
OF THIS NOTE AND ANY SUCH SHARES TO REFLECT ANY CHANGE IN APPLICABLE LAW OR REGULATION (OR THE
INTERPRETATION THEREOF) OR IN PRACTICES RELATING TO THE RESALE OR TRANSFER OF RESTRICTED SECURITIES
GENERALLY. THE HOLDER OF THIS NOTE AND ANY SUCH SHARES SHALL BE DEEMED BY THE ACCEPTANCE OF THIS
NOTE AND ANY SUCH SHARES TO HAVE AGREED TO ANY SUCH AMENDMENT OR SUPPLEMENT.

     The following legend shall appear on the face of each Global Note:

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     THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF THE DEPOSITARY OR A NOMINEE OF THE DEPOSITARY, WHICH MAY BE TREATED BY
THE COMPANY, THE TRUSTEE AND ANY AGENT THEREOF AS OWNER AND HOLDER OF THIS NOTE FOR ALL PURPOSES.

     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.

     UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE REGISTERED FORM
IN THE LIMITED CIRCUMSTANCES REFERRED TO IN THE INDENTURE, THIS GLOBAL NOTE MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE
DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH
NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

22

 

HORIZON LINES, INC.

4.25% Convertible Senior Notes due 2012

No.         
                  
              

CUSIP No. 44044K AA9

     HORIZON LINES, INC., a corporation duly organized and existing under the laws of the State of
Delaware (herein called the “Company,” which term includes any successor Person under the Indenture
referred to on the reverse hereof), for value received, hereby promises to pay to
                  
                  
    , or registered assigns, the principal sum of        
              United States Dollars (U.S.
$                     ) [if this Note is a Global Note, then insert — (which principal amount may from time to
time be decreased to such other principal amounts by adjustments made on the records of the
Registrar hereinafter referred to in accordance with the Indenture)] on August 15, 2012, and to pay
interest thereon, from August 8, 2007, or from the most recent Interest Payment Date (as defined
below) to which interest has been paid or duly provided for, semi-annually in arrears on February
15 and August 15 in each year (each, an “Interest Payment Date”), commencing February 15, 2008, at
the rate of 4.25% per annum, until the principal hereof is due, and at the same rate on any overdue
principal and, to the extent permitted by law, on any overdue interest. The interest so payable,
and punctually paid or duly provided for, on any Interest Payment Date shall, as provided in the
Indenture, be paid to the Person in whose name this Note (or one or more Predecessor Notes) is
registered at the close of business on the Regular Record Date for such interest, which shall be
the February 1 or August 1 (whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date. Except as otherwise provided in the Indenture, any such interest not so
punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such
Regular Record Date and may either be paid to the Person in whose name this Note (or one or more
Predecessor Notes) is registered at the close of business on a Special Record Date for the payment
of such Defaulted Interest to be fixed by the Trustee pursuant to Section 3.07 of the Indenture,
notice whereof shall be given to Holders of Notes not less than 10 calendar days prior to the
Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the
requirements of any automated quotation system or securities exchange on which the Notes may then
be listed for trading, and upon such notice as may be required by such exchange, all as more fully
provided in the Indenture. Payments of principal shall be made upon the surrender of this Note by
the Holder thereof at the Corporate Trust Office of the Trustee, or at such other office or agency
of the Company as may be designated by it for such purpose in such lawful monies of the United
States of America as at the time of payment shall be legal tender for the payment of public and
private debts, or at such other offices or agencies as the Company may designate. All amounts due
in cash with respect to the Notes shall be paid (A) in the case where this Note is in global form,
by wire transfer of immediately available funds to the account

23

 

designated by the Depositary or its nominee; (B) in the case where this Note is held, other
than in global form, by a Holder in an aggregate principal amount of $5.0 million or less, by check
mailed to such Holders; and (C) in the where case this Note is held, other than in global form, by
a Holder in an aggregate principal amount of more than $5.0 million, either by check mailed to such
Holder or, upon application by such Holder to the Registrar not later than the relevant record date
(in the case of an installment of interest due on an Interest Payment Date) or 15 calendar days
prior to such other date on which such amounts are due, by wire transfer in immediately available
funds to such Holder’s account within the United States, which application shall remain in effect
until the Holder notifies, in writing, the Registrar to the contrary.

     Except as specifically provided herein and in the Indenture, the Company shall not be required
to make any payment with respect to any tax, assessment or other governmental charge imposed by any
government or any political subdivision or taxing authority thereof or therein.

     Reference is hereby made to the further provisions of this Note set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

     Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof or an Authenticating Agent by the manual signature of one of their respective
authorized signatories, this Note shall not be entitled to any benefit under the Indenture or be
valid or obligatory for any purpose.

[Remainder of page intentionally left blank]

24

 

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

	 	 	 	 	 
	 	HORIZON LINES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	Attest:	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Notes referred to in the within-mentioned Indenture.

Dated: __________________________

	 	 	 	 	 
	 
	 	 	 	 
	THE BANK OF NEW YORK TRUST 

COMPANY, N.A.,

as Trustee	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized Signatory
	 	 

25

 

[FORM OF REVERSE OF NOTE]

HORIZON LINES, INC.

4.25% Convertible Senior Notes due 2012

     This Note is one of a duly authorized issue of Notes of the Company designated as its “4.25%
Convertible Senior Notes due 2012” (herein called the “Notes”) issued and to be issued under the
Indenture (the “Indenture”), dated as of August 8, 2007, between the Company and The Bank of New
York Trust Company, N.A., as Trustee (herein called the “Trustee,” which term includes any
successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations of rights, duties
and immunities thereunder of the Company, the Trustee and the Holders of the Notes and of the terms
upon which the Notes are, and are to be, authenticated and delivered. As provided in the Indenture
and subject to certain limitations therein set forth, the Notes are exchangeable for a like
aggregate principal amount of Notes of any authorized denominations as requested by the Holder
surrendering the same upon surrender of the Note or Notes to be exchanged, at the Corporate Trust
Office of the Trustee. The Trustee upon such surrender by the Holder hereof and the satisfaction
of any requirements therefor set forth in the Indenture shall issue the new Notes in the requested
denominations. Additional Notes may be issued in an unlimited aggregate principal amount, subject
to certain conditions specified in the Indenture.

     No sinking fund is provided for the Notes and the Notes are not subject to redemption at the
option of the Company.

     In any case where any Interest Payment Date, Fundamental Change Repurchase Date or the
Maturity Date of any Note or the last date on which a Holder has the right to convert his Notes
shall not be a Business Day, then (notwithstanding any other provision of this Indenture or of the
Notes) payment of interest or principal or conversion of the Notes need not be made on such date,
but may be made on the next succeeding Business Day with the same force and effect as if made on
the Interest Payment Date or Fundamental Change Repurchase Date, or at the Maturity Date, or on
such last day for conversion, provided that no interest shall accrue for the period from and after
such Interest Payment Date, Fundamental Change Repurchase Date or the Maturity Date, as the case
may be. Notwithstanding the foregoing, the right to convert a Note shall cease at the close of
business on the fourth Scheduled Trading Day immediately preceding the Maturity Date.

     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

26

 

adding any provisions to or changing in any manner or eliminating any of the
provisions of the Indenture or of any supplemental indenture or modifying in any manner the
rights of the Holders of the Notes; provided, however, that no such supplemental indenture shall
make any of the changes set forth in Section 8.02 of the Indenture, without the consent of each
Holder of an outstanding Note affected thereby. It is also provided in the Indenture that, prior to
any declaration accelerating the maturity of the Notes, 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 except as
provided in the Indenture. Any such consent or waiver by the Holder of this Note (unless revoked as
provided in the Indenture) shall be conclusive and binding upon such Holder and upon all future
holders and owners of this Note and any Notes which may be issued in exchange or substitution
hereof, irrespective of whether or not any notation thereof is made upon this Note or such other
Notes.

     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 on, this Note, at the place, at the respective times,
at the rate and in the lawful money herein prescribed.

     Subject to the provisions of the Indenture, upon the occurrence of a Fundamental Change, the
Holder has the right, at such Holder’s option, to require the Company to repurchase all of such
Holder’s Notes or any portion thereof (in principal amounts of $1,000 or integral multiples
thereof) on the Fundamental Change Repurchase Date at a price equal to 100% of the principal amount
of the Notes such Holder elects to require the Company to repurchase, together with accrued and
unpaid interest (including Special Interest, if any) up to, but excluding the Fundamental Change
Repurchase Date, unless such Fundamental Change Repurchase Date falls after a Regular Record Date
and on or prior to the corresponding Interest Payment Date, in which case the Company shall pay the
full amount of accrued and unpaid interest payable on such Interest Payment Date to the Holder of
record at the close of business on the corresponding Regular Record Date. The Company or, at the
written request of the Company, the Trustee shall mail to all Holders of record of the Notes a
notice of the occurrence of a Fundamental Change and of the repurchase right arising as a result
thereof after the Effective Date of any Fundamental Change, but on or before the 10th calendar day
following such Effective Date.

     Subject to the limitations set forth in Section 12.03 of the Indenture and to the other
provisions of the Indenture, the Holder hereof has the right, at its option, on and after May 15,
2012, or earlier upon the occurrence of certain conditions specified in the Indenture and prior to
the close of business on the fourth Scheduled Trading Day immediately preceding the Maturity Date,
to convert any Notes or portion thereof which is $1,000 or an integral multiple thereof, into cash

27

 

and, if applicable, shares of Common Stock or Reference Property, in each case at the Conversion
Rate specified in the Indenture, as adjusted from time to time as
provided in the Indenture, upon satisfaction of certain requirements set forth in the
Indenture, including the surrender of this Note, together with a Notice of Conversion, a form of
which is contained under Section 2.03 of the Indenture, as provided in the Indenture and this Note,
to the Company at the office or agency of the Company maintained for that purpose, or at the option
of such Holder, the Corporate Trust Office, and, unless the shares of Common Stock or Reference
Property, as the case may be, issuable on conversion are to be issued in the same name as this
Note, duly endorsed by, or accompanied by instruments of transfer in form satisfactory to the
Company duly executed by, the Holder or by his duly authorized attorney. The initial Conversion
Rate shall be 26.9339 shares of Common Stock for each $1,000 in principal amount of Notes. No
fractional shares of Common Stock or Reference Property, as the case may be, shall be issued upon
any conversion, but an adjustment in cash shall be paid to the Holder, as provided in the
Indenture, in respect of any fraction of such share which would otherwise be issuable upon the
surrender of any Note or Notes for conversion. No adjustment shall be made for dividends or any
such shares issued upon conversion of such Notes except as provided in the Indenture.

     Upon due presentment for registration of transfer of this Note at the office or agency of the
Company, a new Note or Notes of authorized denominations for an equal aggregate principal amount
shall be issued to the transferee in exchange thereof, subject to the limitations provided in the
Indenture, without charge except for any tax, assessments or other governmental charge imposed in
connection therewith.

     The Company, the Trustee, any Authenticating Agent, any Paying Agent, any Conversion Agent and
any Registrar may deem and treat the registered Holder hereof as the absolute owner of this Note
(whether or not this Note shall be overdue and notwithstanding any notation of ownership or other
writing hereon), for the purpose of receiving payment hereof, or on account hereof, for the
conversion hereof and for all other purposes, and neither the Company nor the Trustee nor any other
authenticating agent nor any Paying Agent nor any other Conversion Agent nor any Registrar shall be
affected by any notice to the contrary. All payments made to or upon the order of such registered
Holder shall, to the extent of the sum or sums paid, satisfy and discharge liability for monies
payable on this Note.

     No recourse for the payment of the principal of, or accrued and unpaid interest on, this Note,
or for any claim based hereon or otherwise in respect hereof, and no recourse under or upon any
obligation, covenant or agreement of the Company in the Indenture or any indenture supplemental
thereto or in any Note, or because of the creation of any Indebtedness represented thereby, shall
be had against any incorporator, stockholder, employee, agent, officer, director or subsidiary, as
such, past, present or future, of the Company or of any successor

28

 

corporation, either directly or
through the Company or any successor
corporation, whether by virtue of any constitution, statute or
rule of law or by the enforcement of any assessment or penalty or otherwise, all such liability
being, by the
acceptance hereof and as part of the consideration for the issue hereof, expressly waived and
released.

     [Insert the following bracketed paragraphs if this Note is a Registrable Security:

     The Holder of this Note [if this security is a global security, then insert: (including any
Person that has a beneficial interest in this Note)] and the Common Stock issuable upon conversion
hereof is entitled to the benefits of a Registration Rights Agreement, dated as of August 8, 2007
(the “Registration Rights Agreement”) between the Company and the Initial Purchasers. Pursuant to
the Registration Rights Agreement, the Company has agreed for the benefit of the Holders from time
to time of the Registrable Securities that it will, at its expense, (a) file a shelf registration
statement (the “Shelf Registration Statement”) with the Commission with respect to resales of the
Registrable Securities, (b) use its commercially reasonable efforts to cause such Shelf
Registration Statement to be declared effective by the Commission no later than 180 calendar days
after the Issue Date, provided, however, that the Company may, upon written notice to all the
Holders, postpone having the Shelf Registration Statement declared effective for a reasonable
period not to exceed 90 days if the Company possesses material non-public information, the
disclosure of which would have a material adverse effect on the Company and its Subsidiaries taken
as a whole, and (c) use its commercially reasonable efforts to maintain such Shelf Registration
Statement effective under the Securities Act until the earliest of (i) the sale of all Registrable
Securities registered under the Shelf Registration Statement, (ii) the expiration of the period
referred to in Rule 144(k) of the Securities Act with respect to Registrable Securities held by
non-affiliates of the Company and (iii) two years after the effective date of the Shelf
Registration Statement (the “Effectiveness Period”). The Company will be permitted to suspend the
use of the prospectus which is part of the Shelf Registration Statement during certain periods of
time as provided in the Registration Rights Agreement.

     If (i) on or prior to the 180th day following the Issue Date, a Shelf Registration Statement
is not declared effective by the Commission or (ii) the Shelf Registration Statement ceases to be
effective (or the Holders of Registrable Securities are otherwise prevented or restricted by the
Company from effecting sales pursuant thereto) during the Effectiveness Period for more than 45
days, whether or not consecutive, during any 90-day period or for more than 90 days, whether or not
consecutive, during any 12-month period (each, a “Registration Default”), additional interest
(“Special Interest”) will accrue on this Restricted Security from and including the day following
such Registration Default to but excluding the earlier of the day on which such Registration
Default has been cured and, if applicable, the expiration of the Effectiveness Period. Special

29

 

Interest will be paid semi-annually in arrears, with the first semi-annual payment due on the first
Interest Payment Date, as applicable, in respect of the Restricted Securities following the date on
which such Special Interest begins to accrue, and will accrue at a rate per annum equal to
one-quarter of one percent (0.25%) of the principal amount of the Restricted Securities to and including the 90th day following such
Registration Default and at a rate per annum equal to one-half of one percent (0.50%) thereof from
and after the 91st day following such Registration Default.

     Whenever in this Note there is a reference, in any context, to the payment of the principal
of, or interest on, or in respect of, any Note, such mention shall be deemed to include mention of
the payment of Special Interest to the extent provided for in the Registration Rights Agreement,
and express mention of the payment of Special Interest (if applicable) in any provisions of this
Note shall not be construed as excluding Special Interest in those provisions of this Note where
such express mention is not made.]

     By its acceptance hereof, the Holder of this Security [if this security is a global security,
then insert: (including any Person that has a beneficial interest in this Note)] agrees to be bound
by the terms of the Registration Rights Agreement relating to the Registrable Securities which are
the subject of such election.]

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

     The Indenture and this Note shall be governed by and construed in accordance with the laws of
the State of New York.

     Customary abbreviations may be used in the name of a Holder or an assignee, such as TEN COM
(=tenants in common), TENANT (=tenants by the entireties), JT TEN (joint tenants with right of
survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform gift to Minors
Act).

30

 

FORM OF FUNDAMENTAL CHANGE REPURCHASE NOTICE

To: HORIZON LINES, INC.

     The undersigned registered owner of this Note hereby acknowledges receipt of a notice from
Horizon Lines, Inc. (the “Company”) as to the occurrence of a Fundamental Change with respect to
the Company and hereby directs the Company to pay, or cause the Trustee to pay, it or
                     an amount in cash equal to 100% of the entire principal amount, or the portion
thereof (which is $1,000 in principal amount or an integral multiple thereof) below designated, to
be repurchased plus accrued and unpaid interest (including Special Interest, if any) to, but
excluding, the Fundamental Change Repurchase Date, except as provided in the Indenture.

	 	 	 	 	 
	Dated:
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	Signature(s)
	 
	 	 	 	 
	Signature(s) must be guaranteed by an 

Eligible Guarantor Institution with

membership in an approved signature 

guarantee program pursuant to 

Rule 17Ad-15
under the Securities Exchange Act of 1934.
	 
	 	 	 	 
	 	 	 
	Signature Guaranteed	 	 
	 
	 	 	 	 
	Principal amount to be repurchased (at least  

U.S. $1,000 or an integral
multiple of $1,000 

in excess thereof):        
              
               
   
	 
	 	 	 	 
	Remaining principal amount following such 

repurchase (not less than U.S.
$1,000):
               
              
           

	 	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

31

 

     SECTION 2.03 Form of Notice of Conversion.

NOTICE OF CONVERSION

     The undersigned Holder of this Note hereby exercises the option to convert this Note, or any
portion of the principal amount hereof (which is U.S. $1,000 or an integral multiple of U.S. $1,000
in excess thereof, provided that the unconverted portion of such principal amount is U.S. $1,000 or
any integral multiple of U.S. $1,000 in excess thereof) below designated in accordance with the
terms of the Indenture referred to in this Note, and directs that the consideration due upon such
conversion (including a check in payment for any fractional share and any Notes representing any
unconverted principal amount hereof), be delivered to and be registered in the name of the
undersigned unless a different name has been indicated below. If shares of Common Stock, Reference
Property or Notes are to be registered in the name of a Person other than the undersigned, (a) the
undersigned shall pay all transfer taxes payable with respect thereto and (b) signature(s) must be
guaranteed by an Eligible Guarantor Institution with membership in an approved signature guarantee
program pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934. Any amount required to
be paid by the undersigned on account of interest accompanies this Note. The exercise effected
hereby is irrevocable except during a Conversion Retraction Period.

	 	 	 	 	 
	Dated:     
                 
                   
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	Signature(s)

	 	 	 	 	 
	If shares or Notes are to be registered in the

 name of a Person other than the
Holder,

 please print such Person’s name and address:
	 
	 	 	 	 
	         
                
                
                 
                
                
          

(Name)
	 
	 	 	 	 
	         
                
                
                 
                
                
          
	 
	 	 	 	 
	         
                
                
                 
                
                
          

(Address)
	 
	 	 	 	 
	         
                
                
                 
                
                
          

Social Security or other Identification Number, if any
	 
	 	 	 	 
	         
                
                
                 
                
                
          

[Signature Guaranteed]

32

 

If only a portion of the Notes is to be converted, please indicate:

	1.	 	Principal amount to be converted: U.S. $         
                
                
	 
	2.	 	Principal amount and denomination of Notes
representing unconverted principal amount to be issued:        
                
                 

Amount: U.S. $   
                 Denominations: U.S. $                    

(U.S. $1,000 or any integral multiple of U.S. $1,000 in excess thereof, provided that the
unconverted portion of such principal amount is U.S. $1,000 or any integral multiple of U.S. $1,000
in excess thereof)

     SECTION 2.04 Form of Assignment.

ASSIGNMENT

     For value received,  
                 
                
      hereby sell(s), assign(s) and transfer(s) unto
                 
                
        (Please insert Social Security or other identifying number of assignee) the within
note, and hereby irrevocably constitutes and appoints         
                
                 as attorney to transfer
the said note on the books of the Company, with full power of substitution in the premises.

	 	 	 	 	 
	Dated:     
                 
                   

	 	 Signature(s) 	 	 
	 

	 	 	 	 

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

	 	 	 
	 

	 	 
	 

	 	Signature Guaranteed

33

 

ARTICLE 3

The Notes

     SECTION 3.01 Title And Terms.

     The Notes shall be known and designated as the “4.25% Convertible Senior Notes due 2012” of
the Company. Their Maturity Date shall be August 15, 2012, and they shall bear interest on their
principal amount from August 8, 2007, payable semi-annually in arrears on February 15 and August 15
in each year, commencing February 15, 2008, at the rate of 4.25% per annum until the principal
thereof is due; provided, however, that payments shall only be made on a Business Day as provided
in Section 1.13 of this Indenture.

     The Company shall pay interest on overdue principal at the rate borne by the Notes, and it
shall pay interest on overdue installments of interest at the same rate, in each case to the extent
lawful.

     The principal of and interest on the Notes shall be payable as provided in the form of Notes
set forth in Section 2.02. The Fundamental Change Repurchase Price shall be payable at such place
as is identified in the Fundamental Change Repurchase Right Notice given pursuant to Section
11.01(b) (such city in which the identified Paying Agent is located being herein called a “Place of
Payment”).

     The Notes shall be senior unsecured obligations of the Company and shall rank pari passu with
all of the Company’s other senior unsecured obligations.

     The Notes may not be redeemed at the option of the Company prior to Maturity.

     The Notes shall be convertible as provided in Article 12 (any city in which any Conversion
Agent is located being herein called a “Place of Conversion”).

     The Notes shall be subject to repurchase by the Company at the option of the Holders as
provided in Article 11.

     The Registrable Securities are entitled to the benefits of the Registration Rights Agreement
as provided in Section 10.08 and in the form of Note set forth in Section 2.02. The Notes are
entitled to the payment of Special Interest as provided by Section 10.08.

     SECTION 3.02 Denominations.

     The Notes shall be issuable only in registered form, without coupons, in denominations of U.S.
$1,000 and integral multiples of U.S. $1,000 in excess thereof.

34

 

     SECTION 3.03 Execution, Authentication, Delivery and Dating.

     The Notes shall be executed on behalf of the Company by its Chairman of the Board, its Vice
Chairman of the Board, its Chief Executive Officer, its President, its Chief Financial Officer,
Treasurer or one of its Vice Presidents, attested by its Secretary or one of its Assistant
Secretaries. The signature of any of these officers on the Notes may be manual or facsimile.

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

     At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver 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 as in this Indenture provided and
not otherwise.

     Each Note shall be dated the date of its authentication.

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

     SECTION 3.04 Global Notes; Non-Global Notes; Book-entry Provisions.

     (a) Global Notes

     (i) Each Global Note authenticated under this Indenture shall be registered in the
name of the Depositary designated by the Company for such Global Note or a nominee thereof
and delivered to such Depositary or a nominee thereof or custodian therefor, and each such
Global Note shall constitute a single Note for all purposes of this Indenture. The Company
hereby appoints DTC as the Depositary.

     (ii) Except for exchanges of Global Notes for definitive, non-Global Notes at the
sole discretion of the Company, no Global Note may be exchanged in whole or in part for
Notes registered, and no transfer of a Global Note in whole or in part may be registered,
in the name of any Person other than the Depositary for such Global Note or a nominee

35

 

thereof unless (A) such Depositary (i) has notified the Company that it is unwilling
or unable to continue as Depositary for such Global Note or (ii) has ceased to be a
clearing agency registered as such under the Exchange Act or announces an intention
permanently to cease business or does in fact do so or (B) there shall have occurred and
be continuing an Event of Default with respect to such Global Note and the maturity of the
Notes shall have been accelerated in accordance with Section 5.02 and any Holder shall
have given written notice to the Company requesting the issuance of definitive Notes. In
such event set forth in clause (A) above, if a successor Depositary for such Global Note
is not appointed by the Company within 90 calendar days after the Company receives such
notice or becomes aware of such ineligibility, the Company shall execute, and the Trustee,
upon receipt of an Officer’s Certificate directing the authentication and delivery of
Notes, shall authenticate and deliver, Notes, in any authorized denominations in an
aggregate principal amount equal to the principal amount of such Global Note in exchange
for such Global Note.

     (iii) If any Global Note is to be exchanged for other Notes or canceled in whole, it
shall be surrendered by or on behalf of the Depositary or its nominee to the Trustee, as
Registrar, for exchange or cancellation, as provided in this Article 3. If any Global Note
is to be exchanged for other Notes or canceled in part, or if another Note is to be
exchanged in whole or in part for a beneficial interest in any Global Note, in each case
as provided in this Article 3, then either (A) such Global Note shall be so surrendered
for exchange or cancellation, as provided in this Article 3, or (B) the principal amount
thereof shall be reduced or increased by an amount equal to the portion thereof to be so
exchanged or canceled, or equal to the principal amount of such other Note to be so
exchanged for a beneficial interest therein, as the case may be, by means of an
appropriate adjustment made on the records of the Trustee, as Registrar, whereupon the
Trustee, in accordance with the Applicable Procedures, shall instruct the Depositary or
its authorized representative to make a corresponding adjustment to its records. Upon any
such surrender or adjustment of a Global Note, the Trustee shall, subject to this Article
3, authenticate and deliver any Notes issuable in exchange for such Global Note (or any
portion thereof) to or upon the order of, and registered in such names as may be directed
by, the Depositary or its authorized representative. The Trustee shall be entitled to
receive from the Depositary the names, addresses and tax identification numbers of the
Persons in whose names the Notes are to be registered prior to such authentication and
delivery. Upon the request of the Trustee in connection with the occurrence of any of the
events specified in the preceding paragraph, the Company shall promptly make available to
the Trustee a reasonable supply of Notes that are not in the form of Global Notes. The
Trustee shall be entitled to rely upon any order, direction or request of the Depositary
or

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its authorized representative which is given or made pursuant to this Article 3 if
such order, direction or request is given or made in accordance with the Applicable
Procedures.

     (iv) Every Note authenticated and delivered upon registration of transfer of, or in
exchange for or in lieu of, a Global Note or any portion thereof, whether pursuant to this
Article 3 or otherwise, shall be authenticated and delivered in the form of, and shall be,
a registered Global Note, unless such Note is to be registered in accordance with this
Article 3 in the name of a Person other than the Depositary for such Global Note or a
nominee thereof, in which case such Note shall be authenticated and delivered in
definitive, fully registered form, without interest coupons.

     (v) The Depositary or its nominee, as registered owner of a Global Note, shall be the
Holder of such Global Note for all purposes under this Indenture and the Notes, and owners
of beneficial interests in a Global Note shall hold such interests pursuant to the
Applicable Procedures. Accordingly, any such owner’s beneficial interest in a Global Note
shall be shown only on, and the transfer of such interest shall be effected only through,
records maintained by the Depositary or its nominee or its Agent Members and such owners
of beneficial interests in a Global Note shall not be considered the owners or holders
thereof.

     (b) Non-Global Notes. Notes issued pursuant to Section 3.04(a) shall be in definitive, fully
registered form, without interest coupons.

     SECTION 3.05 Persons Deemed Owners.

     Prior to due presentment of a Note for registration of transfer, the Company, the Trustee, any
Paying Agent and any agent of the Company, the Trustee or any Paying Agent may treat the Person in
whose name such Note is registered as the owner of such Note for the purpose of receiving payment
of principal of and (subject to Section 3.07) interest on such Note and for all other purposes
whatsoever, whether or not such Note be overdue, and neither the Company, the Trustee, any Paying
Agent nor any agent of the Company, the Trustee or any Paying Agent shall be affected by notice to
the contrary.

     SECTION 3.06 Mutilated, Destroyed, Lost and Stolen Notes.

     If any mutilated Note is surrendered to the Trustee, the Company shall execute and the Trustee
shall authenticate and deliver in exchange therefor a new Note of like tenor and principal amount
and bearing a number not contemporaneously Outstanding.

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

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

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

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

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

     SECTION 3.07 Payment of Interest; Interest Rights Preserved.

     Interest (including Special Interest) on any Note which is payable, and is punctually paid or
duly provided for, on any Interest Payment Date shall be paid to the Person in whose name that Note
(or one or more Predecessor Notes) is registered at the close of business on the Regular Record
Date for such interest.

     Any interest (including Special Interest) on any Note which is payable, but is not punctually
paid or duly provided for, on any Interest Payment Date (herein called “Defaulted Interest”) shall
forthwith cease to be payable to the Holder on the relevant Regular Record Date by virtue of having
been such Holder, and such Defaulted Interest may be paid by the Company, at its election in each
case, as provided in clause (a) or (b) below:

     (a) 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

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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, and at the same time the Company shall deposit with the
Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such
Defaulted Interest or shall make arrangements reasonably satisfactory to the Trustee for such
deposit 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 Trustee shall fix a Special Record Date for the payment of such Defaulted Interest
which shall be not more than 15 days and not less than 10 days prior to the date of the proposed
payment and not less than 10 days after the receipt by the Trustee of the notice of the proposed
payment. The Trustee shall promptly notify the Company of such Special Record Date and, 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 his address as it appears in the Register, not less than 10 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 (b).

     (b) The Company may make payment of any Defaulted Interest in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the Notes may be listed, and
upon such notice as may be required by such exchange, 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.

     Subject to the foregoing provisions of this Section 3.07, each Note delivered under this
Indenture upon registration of transfer of or in exchange for or in lieu of any other Note shall
carry the rights to interest accrued and unpaid, and to accrue, which were carried by such other
Note, as provided for in this Indenture and the Notes.

     SECTION 3.08 Cancellation.

     All Notes surrendered for payment, repurchase, registration of transfer or exchange or
conversion shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee
and shall be promptly cancelled by it. The Company may at any time deliver to the Trustee for
cancellation any Notes previously authenticated and delivered hereunder which the Company may have
acquired in any manner whatsoever, and all Notes so delivered shall be promptly cancelled by the
Trustee. No Notes shall be authenticated in lieu of or in exchange for any Notes cancelled as
provided in this Section 3.08, except as expressly permitted by

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this Indenture. All cancelled Notes held by the Trustee shall be disposed of by the Trustee
in accordance with its customary procedures.

     SECTION 3.09 Computation of Interest.

     Interest on the Notes shall be computed on the basis of a 360-day year of twelve 30-day
months.

ARTICLE 4

Discharge

     SECTION 4.01 Discharge of Liability on Notes.

     When (1) the Company shall deliver to the Registrar for cancellation all Notes then
Outstanding not theretofore delivered to the Registrar for cancellation or (2) all the Notes then
Outstanding not theretofore delivered to the Registrar for cancellation shall have (a) been
deposited for conversion (after all related Observation Periods have elapsed) and the Company shall
deliver to the Holders cash and, if applicable, shares of Common Stock sufficient to pay all
amounts owing in respect of all such Notes or (b) become due and payable on the Maturity Date,
Fundamental Change Repurchase Date or otherwise, and the Company shall deposit with the Trustee
cash sufficient to pay all amounts owing in respect of all such Notes, including the principal
amount and interest accrued and unpaid to the Maturity Date, Fundamental Change Repurchase Date or
other such date, and if in either case (1) or (2) the Company shall also pay or cause to be paid
all other sums payable hereunder by the Company, then this Indenture with respect to the Notes
shall cease to be of further effect (except as to (i) remaining rights of registration of transfer,
substitution and exchange and conversion of Notes, (ii) rights hereunder of Holders to receive from
the Trustee payments of the amounts then due, including interest with respect to the Notes and the
other rights, duties and obligations of Holders, as beneficiaries hereof solely with respect to the
amounts, if any, so deposited with the Trustee, (iii) the rights, obligations and immunities of the
Trustee, Authenticating Agent, Paying Agent, Conversion Agent and Registrar under this Indenture
with respect to the Notes and (iv) the right to receive Special Interest as provided in the
Registration Rights Agreement), and the Trustee, on demand of the Company accompanied by an
Officer’s Certificate and an Opinion of Counsel as required by Section 4.03 and at the cost and
expense of the Company, shall execute proper instruments acknowledging satisfaction of and
discharging this Indenture with respect to the Notes; provided, however, the Company hereby agrees
to reimburse the Trustee, Authenticating Agent, Paying Agent, Conversion Agent and Registrar for
any costs or expenses thereafter reasonably and properly incurred by the Trustee, Authenticating
Agent, Paying Agent, Conversion Agent and Registrar and to compensate the Trustee, Authenticating
Agent, Paying Agent, Conversion Agent and Registrar for any services thereafter reasonably and
properly rendered by the Trustee,

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Authenticating Agent, Paying Agent, Conversion Agent and Registrar in connection with this
Indenture with respect to the Notes.

     SECTION 4.02 Reinstatement.

     If the Trustee or the Paying Agent is unable to apply any money to the Holders entitled
thereto by reason of any order or judgment of any court of governmental authority enjoining,
restraining or otherwise prohibiting such application, the Company’s obligations under this
Indenture with respect to the Notes shall be revived and reinstated as though no deposit had
occurred pursuant to Section 4.01 until such time as the Trustee or the Paying Agent is permitted
to apply all such money in accordance with this Indenture and the Notes to the Holders entitled
thereto; provided, however, that if the Company makes any payment of principal amount of or
interest on any Note following the reinstatement of its obligations, the Company shall be
subrogated to the rights of the Holders of such Notes to receive such payment from the money held
by the Trustee or Paying Agent.

     SECTION 4.03 Officer’s Certificate; Opinion of Counsel.

     Upon any application or demand by the Company to the Trustee to take any action under Section
4.01, the Company shall furnish to the Trustee an Officer’s Certificate and Opinion of Counsel
stating that all conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with.

ARTICLE 5

Remedies

     SECTION 5.01 Events of Default.

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

     (a) default in any payment of interest on any Note when due and payable and the default
continues for a period of 30 calendar days; or

     (b) default in the payment of principal of any Note when due and payable at Maturity, upon
required repurchase, upon acceleration or otherwise; or

     (c) failure by the Company to comply with its obligation to convert the Notes into cash and,
if applicable, shares of Common Stock upon exercise of a Holder’s conversion right; or

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     (d) failure by the Company to comply with its obligations under Section 7.01; or

     (e) failure by the Company to comply with its notice obligations under Section 11.01(b),
Section 12.02(a) or Section 12.01(c) when due; or

     (f) failure by the Company for 60 calendar days to comply with any of its other agreements
(other than a covenant or warranty Default in whose performance or whose breach is elsewhere in
this Section 5.01 specifically provided for) contained in the Notes or this Indenture after written
notice of such Default from the Trustee or the Holders of at least 25% in principal amount of the
Outstanding Notes has been received by the Company; or

     (g) default by the Company or any majority owned Subsidiary of the Company with respect to any
mortgage, agreement or other instrument under which there may be outstanding, or by which there may
be secured or evidenced, any debt for money borrowed in excess of $15.0 million in the aggregate of
the Company and/or any such Subsidiary of the Company, whether such debt now exists or shall
hereafter be created, which default results (i) in such debt becoming or being declared due and
payable and such debt has not been discharged in full or such declaration rescinded or annulled
within 30 days or (ii) from a failure to pay the principal of any such debt when due and payable at
its stated maturity, upon required repurchase, upon declaration or otherwise and such defaulted
payments shall not have been made, waived or extended within 30 days; or

     (h) failure by the Company or any of its majority owned Subsidiaries, within 60 calendar days,
to pay, bond or otherwise discharge any judgments or orders for the payment of money the total
uninsured amount of which for the Company or any of its Subsidiaries exceeds in the aggregate $15.0
million, which are not stayed on appeal; or

     (i) the Company shall commence a voluntary case or other proceeding seeking liquidation,
reorganization or other relief with respect to the Company or any of its Significant Subsidiaries
or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of
the Company or any of its Significant Subsidiaries or any substantial part of its property, or
shall consent to any such relief or to the appointment of or taking possession by any such official
in an involuntary case or other proceeding commenced against it, or shall make a general assignment
for the benefit of creditors, or shall fail generally to pay its debts as they become due; or

     (j) an involuntary case or other proceeding shall be commenced against the Company or any of
its Significant Subsidiaries seeking liquidation, reorganization or other relief with respect to
the Company or its debts under any bankruptcy, insolvency or other similar law now or hereafter in
effect or seeking

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the appointment of a trustee, receiver, liquidator, custodian or other similar official of the
Company or any of its Significant Subsidiaries or any substantial part of its property, and such
involuntary case or other proceeding shall remain undismissed and unstayed for a period of sixty
(60) consecutive calendar days.

     SECTION 5.02 Acceleration of Maturity; Rescission and Annulment.

     If an Event of Default (other than an Event of Default specified in Section 5.01(i) or Section
5.01(j) with respect to the Company) occurs and is continuing, then in every such case (except as
provided in the immediately following paragraph) the Trustee or the Holders of not less than 25% in
principal amount of the Outstanding Notes may declare the principal of and accrued and unpaid
interest on all such Notes to be due and payable immediately, by a notice in writing to the Company
(and to the Trustee if given by the Holders), and upon any such declaration of acceleration, all
principal and all accrued and unpaid interest (including Special Interest, if any) on the Notes
shall become immediately due and payable. If an Event of Default specified in Section 5.01(i) or
Section 5.01(j) with respect to the Company (but not a Significant Subsidiary) occurs, the
principal of, and accrued and unpaid interest (including Special Interest, if any) on, all of the
Notes shall become immediately due and payable without any declaration or other Act of the Holders
or any act on the part of the Trustee.

     Notwithstanding the foregoing, at the election of the Company, the sole remedy for an Event of
Default specified in Section 5.01(f) relating to the failure by the Company to comply with its
obligations under Section 10.06 and for any failure by the Company to comply with the requirements
of Section 314(a)(1) of the Trust Indenture Act, shall for the first 60 calendar days after the
occurrence of such an Event of Default consist exclusively of the right (the “Extension Right”) to
receive an extension fee on the Notes in an amount equal to 0.25% of the principal amount of the
Notes (the “Extension Fee”). If the Company elects to pay the Extension Fee as the sole remedy for
an Event of Default specified in Section 5.01(f) relating to the failure by the Company to comply
with its obligations under Section 10.06 and for any failure by the Company to comply with the
requirements of Section 314(a)(1) of the Trust Indenture Act, the Company (i) shall notify, in the
manner provided for in Section 1.07, the Holders and the Trustee and Paying Agent of such prior to
the first Business Day following the date on which such Event of Default first occurs and (ii) pay
the Extension Fee, on or before the close of business on the date on which such Event of Default
first occurs, on all Notes then Outstanding. Upon the Company’s failure to give such notice or to
pay the Extension Fee when due, the Notes shall be subject to acceleration as provided in the first
paragraph of this Section 5.02. On and after the 61st calendar day after such Event of Default
occurs, if such Event of Default is not cured or waived prior to such 61st calendar day, the Notes
shall be subject to acceleration as provided in the first paragraph of this Section 5.02. If an
Extension Fee is payable under this Section 5.02, the Company shall deliver to the Trustee a
certificate to that effect stating (i) the amount of such

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Extension Fee that is payable and (ii) the date on which such Extension Fee is payable.
Unless and until a Responsible Officer of the Trustee receives at the Corporate Trust Office such a
certificate, the Trustee may assume without inquiry that the Extension Fee is not payable. If the
Extension Fee has been paid by the Company directly to the Holders, the Company shall deliver to
the Trustee a certificate setting forth the particulars of such payment.

     Notwithstanding the foregoing paragraph, if an Event of Default occurs under any series of the
Company’s debt securities (other than the Notes) issued subsequent to the issuance of the Notes
resulting from the Company’s failure to comply with obligations similar to those contained in
Section 10.06 or the requirements of Section 314(a)(1) of the Trust Indenture Act, and such Event
of Default is not subject to extension on terms similar to those set forth in the foregoing
paragraph, then the Extension Right shall no longer apply and the Notes shall be subject to
acceleration as provided in the first paragraph of this Section 5.02.

     This Section 5.02, however, is subject to the conditions that if, at any time after the
principal of the Notes shall have been so declared due and payable, and before any judgment or
decree for the payment of the monies due shall have been obtained or entered as hereinafter
provided, the Company shall pay or shall deposit with the Trustee a sum sufficient to pay
installments of accrued and unpaid interest upon all Notes and the principal of any and all Notes
that shall have become due otherwise than by acceleration (with interest on overdue installments of
accrued and unpaid interest (to the extent that payment of such interest is enforceable under
applicable law) and on such principal at the rate borne by the Notes during the period of such
Default) and amounts due to the Trustee pursuant to Section 6.07, and if (1) rescission would not
conflict with any judgment or decree of a court of competent jurisdiction and (2) any and all
Events of Defaults under this Indenture with respect to such Notes, other than the nonpayment of
principal of and accrued and unpaid interest on such Notes shall have become due solely by such
acceleration, shall have been cured or waived pursuant to Section 5.04, then and in every such case
the Holders of a majority in aggregate principal amount of the Outstanding Notes, by written notice
to the Company and to the Trustee, may waive all Defaults or Events of Default with respect to the
Notes and rescind and annul such declaration and its consequences and such Default shall cease to
exist, and any Event of Default arising therefrom shall be deemed to have been cured for every
purpose of this Indenture; but no such waiver or rescission and annulment shall extend to or shall
affect any subsequent Default or Event of Default, or shall impair any right consequent thereon.
The Company shall notify the Trustee in writing, as soon as possible and in any event within five
days upon becoming aware thereof, of any Event of Default by delivering to the Trustee a statement
specifying such Event of Default and any action the Company has taken, is taking or proposes to
take with respect thereto. No rescission or annulment referred to above shall affect any
subsequent Default or impair any right consequent thereon.

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     SECTION 5.03 Unconditional Right of Holders to Receive Principal and Interest and to Convert.

     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 of and (subject to
Section 3.07) interest on such Note on the Maturity Date, and to convert such Note in accordance
with Article 12, and to institute suit for the enforcement of any such payment and right to
convert, and such rights shall not be impaired without the consent of such Holder.

     SECTION 5.04 Waiver of Past Defaults.

     The Holders of not less than a majority in principal amount of the Outstanding Notes may on
behalf of the Holders of all of the Notes waive any past Default hereunder and its consequences,
except a Default (A) in the payment of the principal of or interest on any Note or the failure to
deliver amounts due upon conversion, or (B) in respect of a covenant or provision hereof which
under Article 8 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; but no such
waiver shall extend to any subsequent or other Default or impair any right consequent thereon.

     SECTION 5.05 Waiver of Stay, Usury or Extension Laws.

     The Company covenants (to the extent that it may lawfully do so) that it shall not at any time
insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any
stay, usury or extension law wherever enacted, now or at any time hereafter in force, that 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 shall not hinder, delay or impede by reason of such law the execution of any power herein
granted to the Trustee, but shall suffer and permit the execution of every such power as though no
such law had been enacted.

     SECTION 5.06 Control by Holders.

     The Holders of a majority in principal amount of the Outstanding Notes shall have the right to
direct the time, method and place of conducting any proceeding for any remedy available to the
Trustee or exercising any trust or power conferred on the Trustee, provided that

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

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

     (c) the Trustee may refuse to follow any direction that conflicts with law or this Indenture,
is unduly prejudicial to the rights of other Holders or would involve the Trustee in personal
liability.

     SECTION 5.07 Collection of Indebtedness and Suits for Enforcement by Trustee.

     The Company covenants that if:

     (1) default is made in the payment of any interest on any Note when such interest
becomes due and payable and such default continues for a period of 30 days, or

     (2) default is made in the payment of the principal of (or premium, if any, on) any
Note at the Maturity thereof,

the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such
Notes, the whole amount then due and payable on such Notes for principal and interest, and, to the
extent that payment of such interest shall be legally enforceable, interest on any overdue
principal and on any overdue interest, at the rate borne by the Notes, and, in addition thereto,
such further amount as shall be sufficient to cover the costs and expenses of collection, including
the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel.

     If an Event of Default occurs and is continuing, the Trustee may in its discretion proceed to
protect and enforce its rights and the rights of the Holders by such appropriate judicial
proceedings as the Trustee shall deem most 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 5.08 Trustee May File Proofs of Claim.

     In case of any judicial proceeding relative to the Company (or any other obligor upon the
Notes), its property or its creditors, the Trustee shall be entitled and empowered, by intervention
in such proceeding or otherwise, to take any and all actions authorized under the Trust Indenture
Act in order to have claims of the Holders and the Trustee allowed in any such proceeding. In
particular, the Trustee shall be authorized to collect and receive any moneys or other property
payable or deliverable on any such claims and to distribute the same; and any custodian, receiver,
assignee, trustee, liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the
event that the Trustee shall consent

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to the making of such payments directly to the Holders, to pay to the Trustee any amount due
it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 6.07.

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

     SECTION 5.09 Trustee May Enforce Claims Without Possession of Notes.

     All rights of action and claims under this Indenture or the Notes may be prosecuted and
enforced by the Trustee without the possession of any of the Notes or the production thereof in any
proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in
its own name as trustee of an express trust, and any recovery of judgment shall, after provision
for the payment of the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Notes in respect
of which such judgment has been recovered.

     SECTION 5.10 Application of Money Collected.

     Any money collected by the Trustee pursuant to this Article or otherwise on behalf of the
Holders or the Trustee pursuant to this Article or through any proceeding or any arrangement or
restructuring in anticipation or in lieu of any proceeding contemplated by this Article, and any
money or other property distributable in respect of the Company’s obligations under this Indenture
after an Event of Default, 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 on account of principal (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 or any predecessor Trustee
under Section 6.07; and

     SECOND: To the payment of the amounts then due and unpaid for principal of and
interest on the Notes 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 and interest, respectively.

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     SECTION 5.11 Limitation on Suits.

     Except to enforce the right to receive payment of principal or interest when due or to receive
amounts due to it upon conversion, no Holder of any Note shall have any right to institute any
proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a
receiver or trustee, or for any other remedy hereunder, unless:

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

     (2) the Holders of not less than 25% in principal amount of the Outstanding Notes
shall have made written request to the Trustee to institute proceedings in respect of such
Event of Default in its own name as Trustee hereunder;

     (3) such Holder or Holders have offered to the Trustee security or indemnity
satisfactory to it against any costs, liability or expense;

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

     (5) no direction that, in the opinion of the Trustee, is inconsistent with such
written request has been given to the Trustee during such 60-day period by the Holders of
a majority in principal amount of the Outstanding Notes;

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

     SECTION 5.12 Restoration of Rights and Remedies.

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

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     SECTION 5.13 Rights and Remedies Cumulative.

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

     SECTION 5.14 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 an acquiescence therein. Every right and remedy given by
this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as
often as may be deemed expedient, by the Trustee or by the Holders, as the case may be.

     SECTION 5.15 Undertaking for Costs.

     In any suit for the enforcement of any right or remedy under this Indenture, or in any suit
against the Trustee for any action taken, suffered or omitted by it as Trustee, a court may require
any party litigant in such suit to file an undertaking to pay the costs of such suit, and may
assess reasonable costs, including reasonable attorneys’ fees and expenses, against any such party
litigant, in the manner and to the extent provided in the Trust Indenture Act; provided, that
neither this Section 5.15 nor the Trust Indenture Act shall be deemed to authorize any court to
require such an undertaking or to make such an assessment in any suit instituted by the Trustee or
the Company or in any suit for the enforcement of the right to convert any Note in accordance with
Article 12.

ARTICLE 6

The Trustee

     SECTION 6.01 Certain Duties and Responsibilities.

     (a) Except during the continuance of an Event of Default,

     (1) the Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture or required under the Trust Indenture Act, and no
other covenants or obligations shall be read into this Indenture against the Trustee; and

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     (2) in the absence of bad faith or willful misconduct on its part, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of the opinions
expressed therein, upon certificates or opinions furnished to the Trustee and conforming
to the requirements of this Indenture; but in the case of any such certificates or
opinions which 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 (but need not confirm or investigate
the accuracy of mathematical calculations or other facts or matters stated therein).

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

     (c) 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:

     (1) this Subsection shall not be construed to limit the effect of Subsection (a)(1)
of this Section; and

     (2) 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 a majority in
principal amount of the Outstanding Notes 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;

     (d) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or otherwise incur any financial liability in the performance of any of its duties hereunder, or in
the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity against such risk or liability is not reasonably
assured to it.

     (e) Whether or not therein expressly so provided, every provision of this Indenture relating
to the conduct or affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section 6.01.

     SECTION 6.02 Notice of Defaults.

     Within 90 days after the occurrence thereof, and if known to the Trustee, the Trustee shall
mail notice to each Holder of each Default or Event of Default

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with respect to the Notes known to the Trustee, by transmitting such notice to Holders
contained in the most recent list furnished to the Trustee as provided in Section 9.01 and the
names and addresses of Holders received by the Trustee in its capacity as Registrar. Except in the
case of a Default in the payment of principal of or interest on any Note or conversion default, the
Trustee may withhold notice if and so long as a committee of trust officers of the Trustee in good
faith determines that withholding notice is in the interests of the Holders.

     SECTION 6.03 Certain Rights of Trustee.

     Subject to the provisions of Section 6.01:

     (a) the Trustee may conclusively rely and shall be protected in acting or refraining from
acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, other evidence of Indebtedness 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 or direction of the Company mentioned herein shall be sufficiently evidenced
by a Company Request or Company Order, and any resolution of the Board of Directors mentioned in
this Indenture shall be sufficiently evidenced by a Board Resolution;

     (c) whenever in the administration of this Indenture the Trustee shall deem it desirable that
a matter be proved or established prior to taking, suffering or omitting any action hereunder, the
Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith
on its part, conclusively rely upon an Officer’s Certificate;

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

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

     (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, direction,
consent, order, bond, debenture, note, other evidence of Indebtedness or other paper or document,
but the Trustee, in its discretion, may make such further inquiry or investigation into such facts
or

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matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises of the Company,
personally or by agent or attorney at the sole cost of the Company and shall incur no liability or
additional liability of any kind by reason of such inquiry or investigation; and

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

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

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

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

     (k) 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;

     (l) the permissive rights of the Trustee enumerated herein shall not be construed as duties of
the Trustee; and

     (m) 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.

     SECTION 6.04 Not Responsible for Recitals or Issuance of Notes.

     The recitals contained herein and in the Notes, except the Trustee’s certificates of
authentication, shall be taken as the statements of the Company, and neither the Trustee nor any
Authenticating Agent assumes any responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the Notes. Neither the
Trustee nor any

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Authenticating Agent shall be accountable for the use or application by the Company of Notes
or the proceeds thereof.

     SECTION 6.05 May Hold Notes.

     The Trustee, any Authenticating Agent, any Paying Agent, any Registrar or any other agent of
the Company, in its individual or any other capacity, may become the owner or pledgee of Notes and,
subject to Section 6.08 and Section 6.13, may otherwise deal with the Company with the same rights
it would have if it were not Trustee, Authenticating Agent, Paying Agent, Registrar or such other
agent.

     SECTION 6.06 Money Held In Trust.

     Money held by the Trustee in trust hereunder need not be segregated from other funds except to
the extent required by law. The Trustee shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed with the Company.

     SECTION 6.07 Compensation and Reimbursement.

     The Company agrees

     (a) to pay to the Trustee from time to time such compensation as the Company and the Trustee
shall from time to time agree in writing for all services rendered by it hereunder (which
compensation shall not be limited by any provision of law in regard to the compensation of a
trustee of an express trust);

     (b) except as otherwise expressly provided herein, to reimburse the Trustee upon its request
for all reasonable expenses, disbursements and advances incurred or made by the Trustee in
accordance with any provision of this Indenture (including the reasonable compensation and the
expenses and disbursements of its agents and counsel), except any such expense, disbursement or
advance as may be attributable to its gross negligence, willful misconduct or bad faith; and

     (c) to indemnify each of the Trustee or any predecessor Trustee and their agents for, and to
hold them harmless against, any and all loss, damages, claims, liability or expense, including
taxes (other than taxes based upon, measured by or determined by the income of the Trustee),
incurred without gross negligence, willful misconduct or bad faith on its part, arising out of or
in connection with this Indenture or the Notes, including the acceptance or administration of the
trust or trusts hereunder, and the costs and expenses of defending itself against any claim
(whether asserted by the Company, a Holder or any other Person) or liability in connection with the
exercise or performance of any of its powers or duties hereunder or in connection with the
enforcement of the provisions of this Section 6.07.

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     The Trustee shall have a lien prior to the Notes as to all property and funds held by it
hereunder for any amount owing it or any predecessor Trustee pursuant to this Section 6.07, except
with respect to funds held in trust for the benefit of the Holders of particular Notes.

     When the Trustee incurs expenses or renders services in connection with an Event of Default
specified in Section 5.01(i) or Section 5.01(j), 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 or state bankruptcy, insolvency or other similar
law.

     The provisions of this Section 6.07 shall survive the termination of this Indenture and shall
extend to each predecessor Trustee.

     SECTION 6.08 Conflicting Interests.

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

     SECTION 6.09 Corporate Trustee Required; Eligibility.

     There shall at all times be a Trustee hereunder which shall be a Person that is eligible
pursuant to the Trust Indenture Act to act as such, and has a combined capital and surplus of at
least $50,000,000. If such Person publishes reports of condition at least annually, pursuant to
law or to the requirements of its supervising or examining authority, then for the purposes of this
Section 6.09 and to the extent permitted by the Trust Indenture Act, the combined capital and
surplus of such Person shall be deemed to be its combined capital and surplus as set forth in its
most recent report of condition so published. If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section 6.09, it shall resign immediately in the
manner and with the effect hereinafter specified in this Article.

     SECTION 6.10 Resignation and Removal; Appointment Of Successor.

     No resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to
this Article shall become effective until the acceptance of appointment by the successor Trustee in
accordance with the applicable requirements of Section 6.11.

     The Trustee may resign at any time by giving written notice thereof to the Company. If the
instrument of acceptance by a successor Trustee required by Section 6.11 shall not have been
delivered to the Trustee within 30 days after the giving of such notice of resignation, the
resigning Trustee may petition, at the

54

 

Company’s expense, any court of competent jurisdiction for the appointment of a successor
Trustee.

     The Trustee may be removed at any time by Act of the Holders of a majority in principal amount
of the Outstanding Notes, delivered to the Trustee and to the Company.

     If at any time:

     (a) the Trustee shall fail to comply with Section 6.08 after written request therefor by the
Company or by any Holder who has been a bona fide Holder of a Note for at least six months, or

     (b) the Trustee shall cease to be eligible under Section 6.09 and shall fail to resign after
written request therefor by the Company or by any such Holder, or

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

then, in any such case, (A) the Company by a Board Resolution may remove the Trustee or (B) any
Holder who has been a bona fide Holder of a Note for at least six months may, on behalf of himself
and all others similarly situated, petition any court of competent jurisdiction for the removal of
the Trustee and the appointment of a successor Trustee or Trustees.

     If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall
occur in the office of Trustee for any cause, the Company, by a Board Resolution, shall promptly
appoint a successor Trustee or Trustees. If, within 60 days after such resignation, removal or
incapability, or the occurrence of such vacancy, the Company has not appointed a successor Trustee,
a successor Trustee shall be appointed by Act of the Holders of a majority in principal amount of
the Outstanding Notes delivered to the Company and the retiring Trustee, the successor Trustee so
appointed shall, forthwith upon its acceptance of such appointment in accordance with the
applicable requirements of Section 6.11, become the successor Trustee and supersede the successor
Trustee appointed by the Company. If no successor Trustee shall have been so appointed by the
Company or the Holders and accepted appointment in the manner required by Section 6.11, the Trustee
being removed, at the expense of the Company, may, or any Holder who has been a bona fide Holder of
a Note for at least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the appointment of a successor Trustee.

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     The Company shall give notice of each resignation and each removal of the Trustee and each
appointment of a successor Trustee to all Holders in the manner provided in Section 1.06. Each
notice shall include the name of the successor Trustee and the address of its Corporate Trust
Office.

     SECTION 6.11 Acceptance of Appointment by Successor.

     Every successor Trustee appointed hereunder 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.

     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.

     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.

     SECTION 6.12 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 all or substantially all the
corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided
such corporation shall be otherwise qualified and eligible under this Article, without the
execution or filing of any paper or any further act on the part of any of the parties hereto. 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 6.13 Preferential Collection of Claims Against Company.

     If and when the Trustee shall be or become a creditor of the Company (or any other obligor
upon the Notes), the Trustee shall be subject to the provisions of

56

 

the Trust Indenture Act regarding the collection of claims against the Company (or any such
other obligor).

     SECTION 6.14 Appointment of Authenticating Agent.

     The Trustee may appoint an Authenticating Agent or Agents which shall be authorized to act on
behalf of the Trustee to authenticate Notes issued upon original issue and upon exchange,
registration of transfer or partial repurchase thereof or pursuant to Section 3.07, and Notes so
authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory
for all purposes as if authenticated by the Trustee hereunder. Wherever reference is made in this
Indenture to the authentication and delivery of Notes by the Trustee or the Trustee’s certificate
of authentication, such reference shall be deemed to include authentication and delivery on behalf
of the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be acceptable to the
Company and shall at all times be a corporation organized and doing business under the laws of the
United States of America, any State thereof or the District of Columbia, authorized under such laws
to act as Authenticating Agent, having a combined capital and surplus of not less than $50,000,000
and subject to supervision or examination by Federal or State authority. If such Authenticating
Agent publishes reports of condition at least annually, pursuant to law or to the requirements of
said supervising or examining authority, then for the purposes of this Section 6.14, the combined
capital and surplus of such Authenticating Agent shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at any time an
Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section
6.14, such Authenticating Agent shall resign immediately in the manner and with the effect
specified in this Section 6.14.

     Any corporation into which an Authenticating Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion or consolidation to
which such Authenticating Agent shall be a party, or any corporation succeeding to the corporate
agency or corporate trust business of an Authenticating Agent, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible under this Section
6.14, without the execution or filing of any paper or any further act on the part of the Trustee or
the Authenticating Agent.

     An Authenticating Agent may resign at any time by giving written notice thereof to the Trustee
and to the Company. The Trustee may at any time terminate the agency of an Authenticating Agent by
giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving such
a notice of resignation or upon such a termination, or in case at any time such Authenticating
Agent shall cease to be eligible in accordance with the provisions of this Section 6.14, the
Trustee may appoint a successor Authenticating Agent which shall be

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acceptable to the Company and shall give notice of such appointment in the manner provided in
Section 1.07 to all Holders. Any successor Authenticating Agent upon acceptance of its appointment
hereunder shall become vested with all the rights, powers and duties of its predecessor hereunder,
with like effect as if originally named as an Authenticating Agent. No successor Authenticating
Agent shall be appointed unless eligible under the provisions of this Section 6.14.

     The Trustee agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section 6.14, and the Trustee shall be entitled to be
reimbursed for such payments, subject to the provisions of Section 6.07.

     If an appointment with respect to the Notes is made pursuant to this Section 6.14, the Notes
may have endorsed thereon, in addition to the Trustee’s certificate of authentication, an
alternative certificate of authentication in the following form:

     This is one of the Notes referred to in the within-mentioned Indenture.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	,	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	As Trustee	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By
	 	 	,	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	As Authenticating Agent	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Authorized Officer	 	 	 

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ARTICLE 7

Consolidation, Merger, Conveyance, Transfer or Lease

     SECTION 7.01 Company May Consolidate, Etc., Only on Certain Terms.

     The Company shall not consolidate with or merge with or into any other Person or convey,
transfer or lease all or substantially all of its properties and assets to any Person, unless:

     (1) the resulting, surviving or transferee Person, if not the Company, is a
corporation organized and existing under the laws of the United States of America, any
State thereof or the District of Columbia, and such Person, if not the Company, expressly
assumes by supplemental indenture all of the Company’s obligations under the Notes and
this Indenture;

     (2) immediately after giving effect to such transaction, no Default has occurred and
is continuing under this Indenture; and

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

     SECTION 7.02 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 in accordance with Section 7.01, 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, the predecessor Person shall be relieved of all
obligations and covenants under this Indenture and the Notes.

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ARTICLE 8

Supplemental Indentures

     SECTION 8.01 Supplemental Indentures Without Consent of Holders of Notes.

     Without the consent of any Holders of Notes, the Company, when authorized by a Board
Resolution, and the Trustee, upon receipt of a Company Request and an Officer’s Certificate and an
Opinion of Counsel, at any time and from time to time, may enter into one or more indentures
supplemental hereto for any of the following purposes:

     (a) to (i) cure any ambiguity, manifest error or defect; (ii) cure any omission or
inconsistency, provided that, in the case of the foregoing clause (ii), the rights of the holders
are not adversely affected in any material respect; or

     (b) to evidence the succession of another Person to the Company and the assumption by any such
successor of the obligations of the Company herein and in the Notes as permitted by Section 7.01;
or

     (c) to add guarantees with respect to the Notes; or

     (d) to secure the Notes; or

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

     (f) to provide for the conversion of Notes in accordance with the terms of this Indenture;

     (g) to make any change to this Indenture or the Notes that does not adversely affect the
rights of any Holder of Notes in any material respect; provided that any such change to conform the
terms of this Indenture or the Notes to the description of Notes contained in the Offering Circular
shall not be deemed to be adverse to any Holder of Notes; or

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

     (i) to evidence and provide for the acceptance of appointment hereunder by a successor
Trustee; or

     (j) to provide for the issuance of Additional Notes in accordance with the terms and
conditions of this Indenture.

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     Upon Company Request, accompanied by a Board Resolution authorizing the execution of any such
supplemental indenture, the Trustee shall join with the Company in the execution of any
supplemental indenture authorized or permitted by the terms of this Indenture and to make any
further appropriate agreements and stipulations that may be therein contained.

     SECTION 8.02 Supplemental Indentures With Consent of Holders of Notes.

     With the written consent of the Holders of not less than a majority in principal amount of the
Outstanding Notes (including without limitation, consents obtained in connection with a purchase
of, or tender offer or exchange offer for Notes), by the Act of said Holders delivered to the
Company and the Trustee, the Company, when authorized by a Board Resolution, and the Trustee, upon
receipt of a Company Request and an Opinion of Counsel, may enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture or of modifying in any manner the rights of the
Holders of Notes under this Indenture; provided, however, that no such supplemental indenture
shall, without the consent of the Holder of each Outstanding Note affected thereby:

     (a) reduce the percentage in aggregate principal amount of Notes the Holders of which must
consent to an amendment; or

     (b) reduce the rate, or extend the stated time for payment, of interest on any Note or reduce
the amount, or extend the stated time for payment of the Extension Fee; or

     (c) reduce the principal, or extend the Maturity Date, of any Note; or

     (d) make any change that adversely affects the conversion rights of any Notes; or

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

     (f) change the place or currency of payment of principal, interest or the Extension Fee in
respect of any Note; or

     (g) impair the right of any Holder to receive payment of principal of, and interest on, such
Holder’s Notes on or after the due dates therefor or to institute suit for the enforcement of any
payment on or with respect to such Holder’s Note; or

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     (h) adversely affect the ranking of the Notes as the senior unsecured Indebtedness of the
Company; or

     (i) make any change in the provisions of this Article 8 that require each Holder’s consent or
in the waiver provisions in Section 5.02 and Section 5.04.

     It shall not be necessary for any Act of Holders of Notes under this Section 8.02 to approve
the particular form of any proposed supplemental indenture, but it shall be sufficient if such Act
shall approve the substance thereof.

     SECTION 8.03 Notice of Supplemental Indentures.

     Promptly after the execution by the Company and the Trustee of any supplemental indenture
pursuant to the provisions of Section 8.02, the Company shall notify the Holders in the manner
provided in Section 1.07 briefly setting forth in general terms the substance of such supplemental
indenture. Any failure of the Company to give such notice, or any defect in the notice, shall not
in any way impair or affect the validity of any such supplemental indenture.

     SECTION 8.04 Effect of Supplemental Indentures.

     Upon the execution of any supplemental indenture under this Article 8, this Indenture shall be
modified in accordance therewith, and such supplemental indenture shall form a part of this
Indenture for all purposes; and every Holder theretofore or thereafter authenticated and delivered
hereunder shall be bound thereby. The Trustee may, but shall not be obligated to, enter into any
such supplemental indenture, agreement or instrument, or accept any such additional trusts, which
affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise.

     SECTION 8.05 Conformity with Trust Indenture Act.

     Every supplemental indenture executed pursuant to this Article 8 shall conform to the
requirements of the Trust Indenture Act.

ARTICLE 9

Holders Lists and by Trustee and Company

     SECTION 9.01 Company to Furnish Trustee Names and Addresses of Holders.

     The Company will furnish or cause to be furnished to the Trustee

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     (a) semi-annually, not more than 15 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, and

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

excluding from any such list names and addresses received by the Trustee in its capacity as
Registrar.

     SECTION 9.02 Preservation of Information.

     (a) The Trustee shall preserve, in as current a form as is reasonably practicable, the names
and addresses of Holders contained in the most recent list furnished to the Trustee as provided in
Section 9.01 and the names and addresses of Holders received by the Trustee in its capacity as
Registrar. The Trustee may dispose of any list furnished to it as provided in Section 9.01 upon
receipt of a new list so furnished.

     (b) If the Indenture has been qualified under the Trust Indenture Act, 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.

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

     SECTION 9.03 Communication to Holders.

     (a) The Trustee shall transmit to Holders such reports concerning the Trustee and its actions
under this Indenture as may be required pursuant to the Trust Indenture Act at the times and in the
manner provided pursuant thereto.

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

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ARTICLE 10

Covenants

     SECTION 10.01 Payment of Principal and Interest.

     The Company covenants and agrees that it shall duly and punctually pay the principal of and
interest on the Notes in accordance with the terms of the Notes and this Indenture. The Company
shall deposit or cause to be deposited with the Trustee or its nominee, no later than 11:00 a.m.,
New York City time, on the Maturity Date of the Notes or no later than 11:00 a.m., New York City
time, on the due date for any installment of interest, all payments so due, which payments shall be
in immediately available funds on the date of such Maturity Date or due date, as the case may be.

     SECTION 10.02 Maintenance of Offices or Agencies.

     The Company shall maintain in an office or agency where the Notes may be surrendered for
registration of transfer or exchange or for presentation for payment or for conversion or
repurchase and where notices and demands to or upon the Company in respect of the Notes and this
Indenture may be served. The Company shall give prompt written notice to the Trustee of the
location, and any change in the location, of such office or agency not designated or appointed by
the Trustee. If at any time the Company shall fail to maintain any such required office or agency
or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office.

     The Company may at any time and from time to time vary or terminate the appointment of any
such agent or appoint any additional agents for any or all of such purposes; provided, however,
that until all of the Notes have been delivered to the Trustee for cancellation, or moneys
sufficient to pay the principal of and interest on the Notes have been made available for payment
and either paid or returned to the Company pursuant to the provisions of Section 10.05, the Company
shall maintain an office or agency where Notes may be presented or surrendered for payment and
conversion, where Notes may be surrendered for registration of transfer or exchange and where
notices and demands to or upon the Company in respect of the Notes and this Indenture may be
served. The Company shall give prompt written notice to the Trustee, and notice to the Holders in
accordance with Section 1.07, of the appointment or termination of any such agents and of the
location and any change in the location of any such office or agency.

     The Company hereby initially designates the Trustee as Paying Agent, Registrar, and Conversion
Agent, and the Corporate Trust Office of the Trustee as the office or agency of the Company for
each of the aforesaid purposes.

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     SECTION 10.03 Existence.

     Subject to Section 7.01, the Company shall do or cause to be done all things necessary to
preserve and keep in full force and effect its existence, rights (charter and statutory) and
franchises; provided, however, that the Company shall not be required to preserve any such right or
franchise if the Company shall determine that the preservation thereof is no longer desirable in
the conduct of the business of the Company and that the loss thereof is not disadvantageous in any
material respect to the Holders.

     SECTION 10.04 Statement by Officers as to Default.

     The Company shall deliver to the Trustee, within 120 calendar days after the end of each
fiscal year, an Officer’s Certificate indicating whether or not, to the best of such signing
officer’s knowledge, any Default occurred during the previous fiscal year. The Company shall also
deliver to the Trustee, within 30 calendar days of becoming aware of any Default or any Event of
Default under this Indenture, an Officer’s Certificate specifying with particularity the nature and
status of such Default or Event of Default and further stating what action the Company has taken,
is taking or proposes to take with respect thereto.

     Any notice required to be given under this Section 10.04 shall be delivered to the Trustee at
its Corporate Trust Office.

     SECTION 10.05 Money for Note Payments to Be Held in Trust.

     If the Company shall at any time act as its own Paying Agent, it will, on or before each due
date of the principal of or interest on any of the Notes, segregate and hold in trust for the
benefit of the Persons entitled thereto a sum sufficient to pay the principal or interest so
becoming due until such sums shall be paid to such Persons or otherwise disposed of as herein
provided and will promptly notify the Trustee of its action or failure so to act.

     Whenever the Company shall have one or more Paying Agents, it will, prior to each due date of
the principal of or interest on any Notes, deposit with a Paying Agent a sum sufficient to pay such
amount, such sum to be held as provided by the Trust Indenture Act, and (unless such Paying Agent
is the Trustee) the Company will promptly notify the Trustee of its action or failure so to act.

     The Company will cause each Paying Agent other than the Trustee to execute and deliver to the
Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the
provisions of this Section 10.05, that such Paying Agent will (i) comply with the provisions of the
Trust Indenture Act applicable to it as a Paying Agent and (ii) during the continuance of any
default by the Company (or any other obligor upon the Notes) in the making of any

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payment in respect of the Notes, upon the written request of the Trustee, forthwith pay to the
Trustee all sums held in trust by such Paying Agent as such.

     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 by Company Order 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 trusts as those upon which such sums were held by the Company or such
Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be
released from all further liability with respect to such money.

     Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of or interest on any Note and remaining unclaimed for two
years after such principal or interest has become due and payable shall be paid to the Company on
Company Request, or (if then held by the Company) shall be discharged from such trust; and the
Holder of such Note shall thereafter, as an unsecured general creditor, look only to the Company
for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such
trust money, and all liability of the Company as trustee thereof, shall thereupon cease.

     SECTION 10.06 Reports by Company

     (a) The Company shall file any documents or reports that it is required to file with the
Commission pursuant to Section 13 or 15(d) of the Exchange Act with the Trustee within 15 calendar
days after the same are required to be filed with the Commission. Documents filed by the Company
with the Commission via the EDGAR system will be deemed filed with the Trustee as of the time such
documents are filed via EDGAR.

     (b) Delivery of such documents and reports to the Trustee is for informational purposes only,
and the Trustee’s receipt of such shall not constitute constructive notice of any information
contained therein or determinable from information contained therein, including the Company’s
compliance with any of its covenants hereunder (as to which the Trustee is entitled to conclusively
rely exclusively on an Officer’s Certificate). Notwithstanding anything to the contrary in this
Section 10.06, the Company, to the extent permitted under the Trust Indenture Act, shall not be
required to deliver to the Trustee or the Holders any material for which the Company has sought and
received confidential treatment by the Commission.

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     SECTION 10.07 Delivery of Certain Information

     At any time when the Company is not subject to Section 13 or 15(d) of the Exchange Act, upon
the request of a Holder of a Restricted Security or the holder of shares of Common Stock issued
upon conversion thereof, the Company will promptly furnish or cause to be furnished Rule 144A
Information (as defined below) to such Holder of Restricted Securities or such holder of shares of
Common Stock issued upon conversion of Restricted Securities, or to a prospective purchaser of any
such security designated by any such Holder or holder, as the case may be, to the extent required
to permit compliance by such Holder or holder with Rule 144A under the Securities Act (or any
successor provision thereto) in connection with the resale of any such security and to securities
analysts. “Rule 144A Information” shall be such information as is specified pursuant to Rule
144A(d)(4) under the Securities Act (or any successor provision thereto).

     SECTION 10.08 Registration Rights

     The Company agrees that the Holders from time to time of Registrable Securities (as defined
below) are entitled to the benefits of the Registration Rights Agreement.

     Whenever in this Indenture there is mentioned, in any context, the payment of interest on, or
in respect of, any Note, such mention shall be deemed to include mention of the payment of Special
Interest to the extent provided for in the Registration Rights Agreement, and express mention of
the payment of Special Interest (if applicable) in any provisions hereof shall not be construed as
excluding Special Interest in those provisions hereof where such express mention is not made.

     By its acceptance thereof, the Holder of Registrable Securities will have agreed to be bound
by the terms of the Registration Rights Agreement relating to the Registrable Securities which are
the subject of such election.

     If Special Interest is payable under the Registration Rights Agreement, the Company shall
deliver to the Trustee a certificate to that effect stating (i) the amount of Special Interest that
is payable and (ii) the date on which Special Interest is payable. Unless and until a Responsible
Officer of the Trustee receives at the Corporate Trust Office such a certificate, the Trustee may
assume without inquiry that no Special Interest is payable. If Special Interest has been paid by
the Company directly to the persons entitled to them, the Company shall deliver to the Trustee a
certificate setting forth the particulars of such payment.

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ARTICLE 11

Repurchase of Notes

     SECTION 11.01 Right to Require Repurchase Upon a Fundamental Change.

     (a) If a Fundamental Change occurs at any time, then each Holder shall have the right, at such
Holder’s option, to require the Company to repurchase all of such Holder’s Notes or any portion of
the principal amount thereof that is equal to $1,000 or an integral multiple of $1,000, for cash on
the date (the “Fundamental Change Repurchase Date”) specified by the Company that is not less than
20 calendar days and not more than 35 calendar days after the date of the Fundamental Change
Repurchase Right Notice at a repurchase price equal to 100% of the principal amount thereof,
together with accrued and unpaid interest thereon to, but excluding, the Fundamental Change
Repurchase Date, unless such Fundamental Change Repurchase Date falls after a Regular Record Date
and on or prior to the corresponding Interest Payment Date, in which case the Company shall pay the
full amount of accrued and unpaid interest payable on such Interest Payment Date to the Holder of
record at the close of business on the corresponding Regular Record Date (the “Fundamental Change
Repurchase Price”).

     However, notwithstanding the foregoing, Holders shall not have the right to require the
Company to repurchase any Notes under this Section 11.01 based on a Fundamental Change described in
clause (1), (2) or (3) of the definition thereof (and the Company shall not be required to deliver
the Fundamental Change Repurchase Right Notice incidental thereto) if at least 95% of the
consideration for the Common Stock (excluding cash payments for fractional shares and cash payments
made pursuant to dissenters’ appraisal rights and cash dividends) in a merger or consolidation or
such other transaction otherwise constituting a Fundamental Change described in clauses (1) or (2)
of the definition thereof consists of shares of common stock traded on any of the New York Stock
Exchange, The NASDAQ Global Market or The NASDAQ Global Select Market (or any of their respective
successors) (or that will be so traded or quoted immediately following the completion of the merger
or consolidation or such other transaction otherwise constituting a Fundamental Change described in
clauses (1) or (2) of the definition thereof) and as a result of the completion of the merger or
consolidation or such other transaction the Notes become convertible into cash (in respect of the
Principal Portion) and, if applicable, such shares of such common stock pursuant to Section 12.12.

     Repurchases of Notes under this Section 11.01 shall be made, at the option of the Holder
thereof, upon:

     (i) if the Notes are held in certificated form, delivery to the Trustee (or other
Paying Agent appointed by the Company) by a Holder of

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a duly completed notice (the “Fundamental Change Repurchase Notice”) in the form set
forth on the reverse of the Note or, if the Notes are held in global form, a notice that
complies with the Applicable Procedures, prior to the close of business on the Business
Day immediately preceding the Fundamental Change Repurchase Date; and

     (ii) delivery or book-entry transfer of the Notes to the Trustee (or other Paying
Agent appointed by the Company) prior to the close of business on the Business Day
immediately preceding the Fundamental Change Repurchase Date (together with all necessary
endorsements) at the Corporate Trust Office of the Trustee (or other Paying Agent
appointed by the Company), such delivery being a condition to receipt by the Holder of the
Fundamental Change Repurchase Price therefor; provided that such Fundamental Change
Repurchase Price shall be so paid pursuant to this Section 11.01 only if the Note so
delivered to the Trustee (or other Paying Agent appointed by the Company) shall conform in
all respects to the description thereof in the related Fundamental Change Repurchase
Notice.

     The Fundamental Change Repurchase Notice shall state:

     (A) if certificated, the certificate numbers of Notes to be delivered for
repurchase;

     (B) the portion of the principal amount of Notes to be repurchased, which
must be $1,000 or an integral multiple thereof; and

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

     Any purchase by the Company contemplated pursuant to the provisions of this Section 11.01
shall be consummated by the delivery of the consideration to be received by the Holder promptly
following the later of the Fundamental Change Repurchase Date and the time of the book-entry
transfer or delivery of the Note.

     The Trustee (or other Paying Agent appointed by the Company) shall promptly notify the Company
of the receipt by it of any Fundamental Change Repurchase Notice or written notice of withdrawal
thereof in accordance with the provisions of subsection (c) of this Section 11.01.

     Any Note that is to be repurchased only in part shall be surrendered to the Trustee (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 his
attorney duly authorized in writing), and the Company shall execute, and the Trustee shall
authenticate and

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make available for delivery to the Holder of such Note without service charge, a new Note or
Notes, containing identical terms and conditions, each in an authorized denomination in aggregate
principal amount equal to and in exchange for the unrepurchased portion of the principal of the
Note so surrendered.

     (b) After the occurrence of a Fundamental Change, but on or before the 10th calendar day after
the Effective Date of such Fundamental Change, the Company shall provide to all Holders of record
of the Notes and the Trustee and Paying Agent a notice (the “Fundamental Change Repurchase Right
Notice”) of the occurrence of such Fundamental Change and of the resulting repurchase right, if
any, at the option of the Holders arising as a result thereof.

     Each Fundamental Change Repurchase Right Notice shall specify (if applicable):

     (i) the events causing the Fundamental Change;

     (ii) the Effective Date;

     (iii) the last date on which a Holder may exercise the repurchase right;

     (iv) the Fundamental Change Repurchase Price, if applicable;

     (v) the Fundamental Change Repurchase Date, if applicable;

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

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

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

     (ix) the procedures that Holders must follow to require the Company to repurchase
their Notes, if applicable.

     No failure of the Company to give the foregoing notices and no defect therein shall limit the
Holders’ repurchase rights or affect the validity of the proceedings for the repurchase of the
Notes pursuant to this Section 11.01.

     (c) A Fundamental Change Repurchase Notice may be withdrawn in whole or in part by means of a
written notice of withdrawal delivered to the Paying Agent in accordance with the Fundamental
Change Repurchase Right

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Notice at any time prior to the close of business on the Business Day prior to the Fundamental
Change Repurchase Date, specifying:

     (i) if certificated Notes have been issued, the certificate numbers of the withdrawn
Notes,

     (ii) the principal amount of the Notes with respect to which such notice of
withdrawal is being submitted, and

     (iii) the principal amount, if any, of the Notes that remain subject to the original
Fundamental Change Repurchase Notice, which portion must be in principal amounts of $1,000
or an integral multiple of $1,000;

provided, however, that if the Notes are not in certificated form, the notice must comply with the
Applicable Procedures.

     (d) In connection with any repurchase of the Notes pursuant to this Section 11.01, the Company
shall

     (i) comply with the provisions of Rule 13e-4, Rule 14e-1 and any other tender offer
rules under the Exchange Act that may then be applicable; and

     (ii) otherwise comply with all applicable federal and state securities laws.

     (e) On or prior to 11:00 a.m., New York City time, on the Fundamental Change Repurchase Date,
the Company shall deposit with the Trustee (or other Paying Agent appointed by the Company or if
the Company is acting as its own Paying Agent, set aside, segregate and hold in trust as provided
in Section 10.03) an amount of money sufficient to repurchase on the Fundamental Change Repurchase
Date all of the Notes to be repurchased on such date at the Fundamental Change Repurchase Price.
Subject to receipt of funds and/or Notes by the Trustee (or other Paying Agent appointed by the
Company), payment for Notes surrendered for repurchase (and not withdrawn) prior to the Fundamental
Change Expiration Time shall be made promptly after the later of (x) the Fundamental Change
Repurchase Date with respect to such Note (provided the Holder has satisfied the conditions to the
payment of the Fundamental Change Repurchase Price in this Section 11.01), and (y) the time of
book-entry transfer or the delivery of such Note to the Trustee (or other Paying Agent appointed by
the Company) by the Holder thereof in the manner required by this Section 11.01. The Trustee shall,
promptly after such payment and upon written demand by the Company, return to the Company any funds
in excess of the Fundamental Change Repurchase Price.

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     (f) Subject to a Holder’s right to receive interest on an Interest Payment Date where the
Fundamental Change Repurchase Date falls between a Regular Record Date and the Interest Payment
Date to which it relates, if the Trustee (or other Paying Agent appointed by the Company) holds
money sufficient to repurchase on the Fundamental Change Repurchase Date all the Notes or portions
thereof that are to be purchased as of the Business Day following the Fundamental Change Repurchase
Date, then on and after the Fundamental Change Repurchase Date (i) such Notes shall cease to be
Outstanding, (ii) interest shall cease to accrue on such Notes, and (iii) all other rights of the
Holders of such Notes shall terminate, whether or not book-entry transfer of the Notes has been
made or the Notes have been delivered to the Trustee or Paying Agent, other than the right to
receive the Fundamental Change Repurchase Price upon delivery of the Notes.

     (g) No Notes may be repurchased at the option of the Holders upon the occurrence of a
Fundamental Change if the principal amount of the Notes has been accelerated, and such acceleration
has not been rescinded, on or prior to the Effective Date of such Fundamental Change.

ARTICLE 12

Conversion of Notes

     SECTION 12.01 Conversion Privilege and Conversion Rate.

     (a) Subject to the conditions described in clause (i), (ii), and (iii) below, and upon
compliance with the provisions of this Article 12, a Holder shall have the right, at such Holder’s
option, to convert all or any portion (if the portion to be converted is $1,000 in principal amount
or an integral multiple thereof) of any Notes at any time prior to May 15, 2012, at a rate of
26.9339 shares of Common Stock (subject to adjustment by the Company as provided in Section
12.01(e) and Section 12.05) per $1,000 in principal amount of the Notes (the “Conversion Rate”)
under the circumstances and during the periods set forth below. On and after May 15, 2012
regardless of the conditions described in clause (i), (ii) and (ii) below, and upon compliance with
the provisions of this Article 12, a Holder shall have the right, at such Holder’s option, to
convert all or any portion (if the portion to be converted is $1,000 in principal amount or an
integral multiple thereof) of any Notes at the applicable Conversion Rate at any time prior to the
close of business on the fourth Scheduled Trading Day immediately preceding the Maturity Date.

     (i) The Notes shall be convertible prior to May 15, 2012, during the five Business
Day period immediately after any five consecutive Trading Day period (the “Measurement
Period”) in which the Trading Price per $1,000 in principal amount of the Notes for each
Trading Day of such Measurement Period was less than 98% of the product of the Last
Reported Sale Price of the Common Stock on such

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Trading Day and the applicable Conversion Rate in effect on such Trading Day (the
“Trading Price Condition”) determined as set forth below. If a Holder provides the Company
with reasonable evidence that the Trading Price per $1,000 in principal amount of the
Notes would be less than 98% of the product of (A) the then-applicable Conversion Rate of
the Notes and (B) the Last Reported Sale Price at such time, then the Company shall
instruct the Trustee to determine the Trading Price of the Notes beginning on the next
Trading Day and on each successive Trading Day until the date on which the Trading Price
per Note is greater than or equal to 98% of the product of (I) the then-applicable
Conversion Rate of the Notes and (II) the Last Reported Sale Price (as provided to the
Trustee by the Company on each such date). If the Trading Price Condition has been met in
accordance with the foregoing, the Company shall promptly notify the Holders of the Notes.
If, at any time after the Trading Price Condition has been met in accordance with the
foregoing, the Trading Price per $1,000 in principal amount of the Notes is greater than
98% of the product of (x) the then-applicable Conversion Rate of the Notes and (y) the
Last Reported Sale Price on such date, the Company shall promptly notify the Holders of
the Notes, and the Trustee shall have no further obligation to determine the Trading Price
of the Notes unless requested by the Company to do so again in writing pursuant to this
Section 12.01. Furthermore, if the Company does not, when obligated to do so pursuant to
this clause (i), instruct the Trustee to determine the Trading Price of the Notes, or if
the Company so instructs the Trustee, but the Trustee does not make such determination,
then the Trading Price per $1,000 in principal amount of the Notes shall be deemed to be
less than 98% of the product of (a) the then-applicable Conversion Rate of the Notes and
(b) the Last Reported Sale Price on such date.

     (ii) The Notes shall be convertible prior to May 15, 2012, during any calendar
quarter after the calendar quarter ending September 30, 2007 (and only during such
calendar quarter), if the Last Reported Sale Price of the Common Stock for twenty (20) or
more Trading Days in a period of thirty (30) consecutive Trading Days ending on the last
Trading Day of the immediately preceding calendar quarter exceeds 120% of the applicable
Conversion Price in effect on the last Trading Day of the immediately preceding calendar
quarter (the “Stock Price Condition”). If the Stock Price Condition has been met in
accordance with the foregoing, the Company shall promptly notify the Holders of the Notes.

     (iii) The Notes shall be convertible prior to May 15, 2012, as provided in
subsections (b), (c) and (d) of this Section 12.01.

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

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     (i) distribute to all or substantially all holders of Common Stock any rights or
warrants entitling them, for a period of not more than 60 calendar days after the record
date for such distribution, to subscribe for or purchase Common Stock at a price per share
less than the Last Reported Sale Price of the Common Stock for the Trading Day immediately
preceding the declaration date of such distribution; or

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

     then, in either case, Holders may surrender the Notes for conversion at any time on and after
the date that the Company provides the notice to such Holders and the Trustee referred to in the
next sentence until the earlier of 5:00 p.m., New York City time, on the Business Day immediately
preceding the Ex-Date for such distribution or the date the Company announces that such
distribution will not take place. The Company shall notify Holders and the Trustee of any
distribution referred to in either clause (i) or clause (ii) above and of the resulting conversion
right no later than the 25th Scheduled Trading Day prior to the Ex-Date for such distribution. A
Holder may not exercise this right if such Holder is permitted to participate (as a result of
holding the Notes, and at the same time as holders of the Common Stock participate) in any
distribution referred to in clause (i) or clause (ii) above as if such Holder held a number of
shares of Common Stock equal to the then-applicable Conversion Rate, multiplied by the principal
amount (expressed in thousands) of Notes held by such Holder, without having to convert its Notes.

     (c) If the Company is a party to a combination, merger, recapitalization, reclassification,
binding-share exchange or other similar transaction or sale or conveyance of all or substantially
all of its properties and assets, in each case pursuant to which the Common Stock would be
converted into cash, securities and/or other property and that does not also constitute a
Fundamental Change, then the Holders shall have the right to convert Notes at any time beginning on
the effective date of the transaction and ending on the 20th Scheduled Trading Day after the date
that is the effective date of such transaction. The Company shall notify the Holders and the
Trustee on the effective date of any such transaction.

     (d) If any transaction or event constituting a Fundamental Change occurs, a Holder may
surrender Notes for conversion at any time from the Effective Date of such Fundamental Change until
(i) the related Fundamental Change Repurchase Date or (ii) if there is no such Fundamental Change
Repurchase Date, 20 Scheduled Trading Days following the Effective Date of

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such Fundamental Change. The Company shall notify the Holders and the Trustee of a
Fundamental Change on its Effective Date.

     (e) If a Holder elects to convert Notes in connection with a Make-Whole Fundamental Change,
the Conversion Rate applicable to each $1,000 in principal amount of Notes so converted shall be
increased by an additional number of shares of Common Stock (the “Additional Shares”) as described
below; provided, however that no increase shall be made in the case of a transaction or event
constituting a Fundamental Change described in clauses (1) or (2) of the definition thereof if 95%
or more of the consideration for the Common Stock (excluding cash payments for fractional shares
and cash payments made pursuant to dissenters’ appraisal rights) in such transaction consists of
shares of common stock traded on any of the New York Stock Exchange, The NASDAQ Global Market or
The NASDAQ Global Select Market (or any of their respective successors) (or that will be so traded
or quoted immediately following the transaction) and as a result of such transaction or
transactions the Notes become convertible into cash (in respect of the Principal Portion) and such
shares of such common stock pursuant to Section 12.12. For purposes of this subsection (e), a
conversion shall be deemed to be “in connection with” a Make-Whole Fundamental Change if such
conversion occurs on or after the Make-Whole Reference Date of such Make-Whole Fundamental Change,
until (i) the related Make-Whole Fundamental Change Repurchase Date or, (ii) if there is no such
Make-Whole Fundamental Change Repurchase Date, 30 Scheduled Trading Days following the Make-Whole
Reference Date of such Make-Whole Fundamental Change, as applicable. The Company shall notify, in
the manner provided for in Section 1.07, the Holders and the Trustee of any such Make-Whole
Fundamental Change on the Make-Whole Reference Date. Settlement of Notes tendered for conversion
to which Additional Shares shall be added to the Conversion Rate as provided in this subsection
shall be settled pursuant to Section 12.02(d) based on the applicable Conversion Rate as increased
by the Additional Shares on the third VWAP Trading Day immediately following the last VWAP Trading
Day of the applicable Observation Period.

     (i) The number of Additional Shares shall be determined by the Company by reference
to the table attached as Schedule A hereto, based on the Make-Whole Reference Date
and the Stock Price; provided that if the actual Stock Price is between two Stock Price
amounts in the table or the Make-Whole Reference Date is between two dates in the table,
the number of Additional Shares shall be determined by a straight-line interpolation
between the number of Additional Shares set forth for the next higher and next lower Stock
Price amounts and the two nearest Make-Whole Reference Dates, as applicable, based on a
365-day year; provided further that if (1) the Stock Price is greater than $100.00 per
share of Common Stock (subject to adjustment in accordance with clause (ii) below), no
adjustments will be made in the Conversion Rate, and (2) the Stock Price is less than
$28.56 per share (subject to adjustment in

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accordance with clause (ii) below), no adjustments will be made in the Conversion
Rate. Notwithstanding the foregoing, in no event shall the Conversion Rate exceed
35.0140 per $1,000 in principal amount of Notes (subject to adjustment in the
same manner as set forth in Section 12.05).

     (ii) The Stock Prices set forth in the first column of the tables in Schedule
A hereto (i.e., the row headers) shall be adjusted by the Company as of any date on
which the Conversion Rate of the Notes is adjusted (except pursuant to this Section
12.01(e)). The adjusted Stock Prices shall equal the Stock Prices applicable immediately
prior to such adjustment, multiplied by a fraction, the numerator of which is the
applicable Conversion Rate in effect 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 within the table shall be adjusted in the same
manner as the Conversion Rate as set forth in Section 12.05 (other than by operation of an
adjustment to the Conversion Rate by adding Additional Shares).

     SECTION 12.02 Exercise of Conversion Privilege.

     (a) (1) Subject to subsection (c) of this Section 12.02, the Company shall satisfy the
Conversion Obligation with respect to each $1,000 in principal amount of Notes tendered for
conversion in cash and shares of fully paid Common Stock, if applicable, by delivering, on the
Delivery Date, (x) cash and shares of Common Stock, if any, equal to the sum of the Daily
Settlement Amounts for each of the 50 VWAP Trading Days during the related Observation Period;
provided that the Company shall deliver cash in lieu of fractional shares of Common Stock as
provided in Section 12.04. The Daily Settlement Amounts shall be determined by the Company
promptly following the last VWAP Trading Day of the Observation Period.

          (2) If the Company elects to pay cash in lieu of delivering all or a portion of the
Deliverable Shares, the Company shall notify, in the manner provided for in Section 1.07, the
Holder tendering a Notice of Conversion of the percentage of each share of Common Stock issuable
upon conversion that will be paid in cash in lieu of shares of Common Stock (the “Cash Percentage”)
at any time on or before the close of business on the Trading Day following the Company’s receipt
of the Notice of Conversion tendered by such Holder. In the event the Company elects to settle in
cash all or any portion of the shares of Common Stock issuable upon conversion in connection with
conversions of Notes within 65 Scheduled Trading Days prior to the Maturity Date of such Notes, the
Company shall send, on or prior to the 65th Scheduled Trading Day prior to the Maturity
Date, a single notice for all such conversions to the Trustee with respect to the Cash Percentage
that will be paid in cash in lieu of shares of Common Stock.

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          (3) Notwithstanding anything in this Indenture to the contrary, in no event will the
aggregate number of Deliverable Shares (or cash deliverable in lieu thereof) to be delivered in
addition to the aggregate Principal Portion of Notes converted exceed 26.9339 shares per $1,000
principal amount of Notes (subject to adjustment in the same manner as provided in Section 12.05).

          (4) A Holder will become a record owner with respect to the number of shares of Common Stock
it is entitled to receive as a result of converting its Notes on each VWAP Trading Day in the
Observation Period with respect to a number of shares of Common Stock it is entitled to receive
with respect to such VWAP Trading Day.

     (b) Notwithstanding subsection (a) of this Section 12.02, the Company shall satisfy the
Conversion Obligation with respect to each $1,000 in principal amount of Notes tendered for
conversion to which Additional Shares shall be added to the Conversion Rate as set forth in Section
12.01(e) pursuant to this clause (b); provided, (i) the Company may elect to pay cash to Holders of
Notes surrendered for conversion in lieu of all or a portion of the shares of Common Stock issuable
upon conversion of the Notes in satisfaction of the Conversion Obligation pursuant to clause (2) of
subsection (a) of this Section.

     (c) Before any Holder of a Note shall be entitled to convert the same as set forth above, such
Holder shall (1) in the case of a Global Note, comply with the procedures of the Depositary in
effect at that time and, if required, pay funds equal to interest payable on the next Interest
Payment Date to which such Holder is not entitled as set forth in subsection (i) of this Section
12.02 and, if required, pay taxes or duties, if any, and (2) in the case of a Note issued in
certificated form, (A) complete and manually sign and deliver a written notice to the Conversion
Agent in the form set forth under Section 2.03 (or a facsimile thereof) (a “Notice of Conversion”)
at the office of the Conversion Agent and shall state in writing therein the principal amount of
Notes to be converted and the name or names (with addresses) in which such Holder wishes the
certificate or certificates for any shares of Common Stock, if any, to be delivered upon settlement
of the Conversion Obligation to be registered, (B) surrender such Notes, duly endorsed to the
Company or in blank (and accompanied by appropriate endorsement and transfer documents), at the
office of the Conversion Agent, (C) if required, pay funds equal to interest payable on the next
Interest Payment Date to which such Holder is not entitled as set forth in subsection (i) of this
Section 12.02, and (D) if required, pay all taxes or duties, if any. As used herein, “Conversion
Date” shall mean the date that the Holder has complied with the requirements set forth in this
subsection (c). A Holder shall be permitted to amend or supplement its instructions to the
Depositary or its Notice of Conversion, as applicable, to change the Person or Persons that the
Holder has designated to receive the shares of Common Stock, if any, to be delivered upon
settlement of the Conversion

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Obligation until the third Scheduled Trading Day prior to the applicable Delivery Date.

     No Notice of Conversion with respect to any Notes may be tendered by a Holder thereof if such
Holder has also tendered a Fundamental Changes Repurchase Notice and not validly withdrawn such
Fundamental Changes Repurchase Notice in accordance with the applicable provisions of Section
11.01.

     If more than one Note shall be surrendered for conversion at one time by the same Holder, the
Conversion Obligation with respect to such Notes, if any, that shall be payable upon conversion
shall be computed on the basis of the aggregate principal amount of the Notes (or specified
portions thereof to the extent permitted thereby) so surrendered.

     At any time on or before the close of business on the Trading Day following receipt by the
Company of a Holder’s Notice of Conversion, the Company shall provide notice (“Notice of Jones Act
Restrictions”) to the converting Holder whether any Jones Act Restrictions would apply (or are
reasonably likely to apply) to any shares of Common Stock, if any (after giving effect to the
Company’s option to pay cash in lieu of delivering all or a portion of the deliverable shares
pursuant to Section 12.02(a)), to be issued to the converting Holder, based on (i) the assumption
that such converting Holder is not a United States Citizen and (ii) the current ownership of
outstanding Common Stock by Persons who are not United States Citizens. Following the last
Business Day of the Final Observation Period but before the close of business on the Trading Day
following the last Trading Day of the Final Observation Period, the Company will provide a single
Notice of Jones Act Restrictions (in lieu of individual notices) applicable to any Conversion Date
occurring on or after the 65th Scheduled Trading Day prior to the Maturity Date. If the Company
provides a Notice of Jones Act Restrictions to a converting Holder, such Holder may retract their
Conversion Notice at any time during the five Business Day period immediately following the date of
such notice (the “Conversion Retraction Period”). A converting Holder’s Notice of Conversion shall
be irrevocable unless the Company provides a Notice of Jones Act Restrictions to such converting
Holder, in which case such Notice of Conversion shall be irrevocable except during the Conversion
Retraction Period.

     (d) Delivery of the amounts owing in satisfaction of the Conversion Obligation shall be made
by the Company in no event later than the date specified in subsection (a) of this Section 12.02,
except to the extent specified in subsection (b) of this Section 12.02. The Company shall make such
delivery by paying the cash amount owed to the Holder of the Note surrendered for conversion, or
such Holder’s nominee or nominees, and, if applicable, by issuing, or causing to be issued, and
delivering to such Holder, or such Holder’s nominee or nominees, certificates or a book-entry
transfer through the Depositary for the number of full

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shares of Common Stock, if any, to which such Holder shall be entitled as part of such
Conversion Obligation (together with any cash in lieu of fractional shares).

     (e) In case any Note shall be surrendered for partial conversion, the Company shall execute
and the Trustee shall, as provided in a Company Order, authenticate and deliver to or upon the
written order of the Holder of the Note so surrendered, without charge to such Holder, a new Note
or Notes in authorized denominations in an aggregate principal amount equal to the unconverted
portion of the surrendered Notes.

     (f) If a Holder submits a Note for conversion, the Company shall pay all documentary, stamp or
similar issue or transfer tax due, if any, which may be imposed by the United States or any
political subdivision thereof or taxing authority thereof or therein with respect to the issuance
of shares of Common Stock, if any, upon the conversion. However, the Holder shall pay any such tax
which is due because the Holder requests any shares of Common Stock to be issued in a name other
than the Holder’s name. The Company may refuse to deliver the certificates representing the shares
of Common Stock being issued in a name other than the Holder’s name until the Company receives a
sum sufficient to pay any tax which will be due because the shares are to be issued in a name other
than the Holder’s name. Nothing herein shall preclude any tax withholding required by law or
regulations.

     (g) Except as provided in Section 12.05, no adjustment shall be made for dividends on any
shares issued upon the conversion of any Note as provided in this Article 12.

     (h) Upon the conversion of an interest in a Global Note, the Trustee, or the Custodian at the
direction of the Trustee, shall make a notation on such Global Note as to the reduction in the
principal amount represented thereby. The Company shall notify the Trustee in writing of any
conversion of Notes effected through any Conversion Agent other than the Trustee.

     (i) Upon conversion, a Holder shall not receive any separate cash payment for accrued and
unpaid interest except as set forth below. The Company’s settlement of the Conversion Obligation as
described above shall be deemed to satisfy its obligation to pay the principal amount of the Note
and accrued and unpaid interest to, but not including, the Conversion Date. As a result, accrued
and unpaid interest (including Special Interest, if any) on the Notes to, but not including, the
Conversion Date shall be deemed to be paid in full rather than cancelled, extinguished or
forfeited. Notwithstanding the preceding sentence, if Notes are converted after 5:00 p.m., New York
City time, on a Regular Record Date, Holders of such Notes as of 5:00 p.m., New York City time, on
such Regular Record Date shall receive the interest payable on such Notes on the corresponding
Interest Payment Date notwithstanding the conversion. Notes surrendered for conversion during the
period from 5:00 p.m., New York City time,

79

 

on any Regular Record Date to 9:00 a.m., New York City time, on the corresponding Interest
Payment Date must be accompanied by payment of an amount in cash equal to the interest payable, on
such Interest Payment Date, on the Notes so converted; provided, however, that no such payment need
be made (i) if the Company has specified a Fundamental Change Repurchase Date that is after a
Regular Record Date and on or prior to the Trading Day following the corresponding Interest Payment
Date; (ii) to the extent of any overdue interest, if any overdue interest remains unpaid at the
time of conversion with respect to such Note; or (iii) with respect to any Conversion Date that
occurs during the period from the close of business on the Regular Record Date immediately
preceding the Maturity Date to the Maturity Date. Except as described above, no payment or
adjustment shall be made for accrued interest on converted Notes.

     SECTION 12.03 Restrictions on Conversion Rights.

     Notwithstanding anything in this Indenture to the contrary, no Holder who cannot establish to
the Company’s reasonable satisfaction that it (or, if not the Holder, the Person that the Holder
has designated to receive the Common Stock issuable upon conversion of the Notes) is a United
States Citizen (i) may exercise any conversion right with respect to the Notes to the extent that
the receipt of the Common Stock, if any, deliverable upon conversion of the Notes (after giving
effect to the Company’s option to pay cash in lieu of delivering all or a portion of the
deliverable shares of Common Stock pursuant to Section 12.02(a)) would cause such Person, or any
Person whose ownership position would be aggregated with that of such Person under applicable
Maritime Laws, to exceed 4.9% of the outstanding Common Stock or (ii) shall receive any shares of
Common Stock upon conversion of the Notes to the extent such shares would constitute Excess Shares
if they were issued. Settlement of any shares of Common Stock that would constitute Excess Shares
if they were issued shall be suspended until such time as such shares would not constitute Excess
Shares if they were issued.

     Notwithstanding anything in this Indenture to the contrary, a Holder (or, if not the Holder,
the Person that the Holder has designated to receive the shares of Common Stock issuable upon
conversion of the Notes) shall not become the record or beneficial owner of any shares the
settlement of which is suspended as described above, or otherwise have any rights as a holder of
Common Stock with respect to such shares, until such time as such shares would not constitute
Excess Shares if they were issued.

     SECTION 12.04 Fractions of 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 issuable 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

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fractional share of Common Stock that would otherwise be issuable upon conversion of any Note
or Notes (or specified portions thereof), the Company shall calculate and pay a cash adjustment in
respect of such fraction (calculated to the nearest 1/100th of a share) in an amount equal to the
same fraction of the Daily VWAP of the Common Stock on the last VWAP Trading Day of the relevant
Observation Period.

     SECTION 12.05 Adjustment of Conversion Rate.

     The Conversion Rate shall be adjusted from time to time by the Company as follows; provided
that the Company shall not make any adjustments to the Conversion Rate if the Company, at its
election, provides that Holders of the Notes participate (as a result of holding the Notes, and at
the same time as holders of the Common Stock participate) in any of the transactions described
below as if such Holders 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 Holders,
without having to convert their Notes:

     (a) In case the Company shall issue shares of Common Stock as a dividend or distribution on
shares of Common Stock, or shall effect a share split or share combination, the Conversion Rate
shall be adjusted based on the following formula:

where,

CR0 = the Conversion Rate in effect immediately prior to the Ex-Date for such
dividend or distribution or immediately prior to the effective date of such share split or
combination, as the case may be;

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

OS0 = the number of shares of Common Stock outstanding immediately prior to the
Ex-Date for such dividend or distribution or immediately prior to the effective date of
such share split or combination, as the case may be; and

OS ́ = the number of shares of Common Stock outstanding as of the “Ex-Date” for such
dividend or distribution and immediately after giving effect to such dividend or
distribution or immediately after the effective date of such share split or combination,
as the case may be.

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     Such adjustment shall become effective immediately prior to the opening of business on the
Ex-Date fixed for such dividend or distribution, or the effective date for such share split or
share combination. If any dividend or distribution of the type described in this Section 12.05(a)
is declared but not so paid or made, or the outstanding shares of Common Stock are not split or
combined, as the case may be, the Conversion Rate shall be immediately readjusted, effective as of
the date the Board of Directors determines not to pay such dividend or distribution, or split or
combine the outstanding shares of Common Stock, as the case may be, to the Conversion Rate that
would then be in effect if such dividend, distribution, share split or share combination had not
been declared.

     (b) In case the Company shall distribute to all or substantially all holders of its
outstanding shares of Common Stock any rights or warrants entitling them (for a period expiring not
more than 60 calendar days after the Ex-Date for such distribution) to subscribe for or purchase
shares of Common Stock at a price per share less than the Last Reported Sale Price of the Common
Stock on the Trading Day immediately preceding the declaration date of such distribution, the
Conversion Rate shall be adjusted based on the following formula:

where,

CR0 = the Conversion Rate in effect immediately prior to the Ex-Date for such
distribution;

CR ́ = the Conversion Rate in effect immediately after the Ex-Date for such distribution;

OS0 = the number of shares of Common Stock outstanding immediately prior to the
Ex-Date for such distribution;

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 Common
Stock over the 10 consecutive Trading Day period ending on the Trading Day immediately
preceding the declaration date for such distribution.

     Such adjustment shall be successively made whenever any such rights or warrants are
distributed and shall become effective immediately prior to the opening of business on the Ex-Date
for such distribution. The Company shall not issue any such rights or warrants in respect of
shares of the Common Stock held

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in treasury by the Company. To the extent that shares of the Common Stock are not delivered
after the expiration of such rights or warrants, the Conversion Rate shall be readjusted to the
Conversion Rate that would then be in effect had the adjustments made upon the issuance of such
rights or warrants been made on the basis of delivery of only the number of shares of Common Stock
actually delivered. If such rights or warrants are not so issued, the Conversion Rate shall again
be adjusted to be the Conversion Rate that would then be in effect if such Ex-Date for such
distribution had not been fixed.

     In determining whether any rights or warrants entitle the holders to subscribe for or purchase
shares of Common Stock at less than such Last Reported Sale Price, and in determining the aggregate
offering price of such shares of Common Stock, there shall be taken into account any consideration
received by the Company for such rights or warrants and any amount payable on exercise or
conversion thereof, the value of such consideration, if other than cash, to be determined by the
Board of Directors.

     (c) In case the Company shall, by dividend or otherwise, distribute to all or substantially
all holders of its Common Stock shares of any class of Capital Stock of the Company, evidences of
its Indebtedness or other assets or property of the Company (including securities, but excluding
dividends and distributions covered by subsection (a), (b) or (d) of this Section 12.05 and
distributions described below in this subsection (c) with respect to Spin-Offs) (any of such shares
of Capital Stock, Indebtedness, or other asset or property hereinafter in this subsection (c)
called the “Distributed Property”), then, in each such case the Conversion Rate shall be adjusted
based on the following formula:

where,

CR0 = the Conversion Rate in effect immediately prior to the Ex-Date for such
distribution;

CR ́ = the Conversion Rate in effect immediately after the Ex-Date for such distribution;

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

FMV = the fair market value as determined by the Board of Directors of the Distributed
Property with respect to each outstanding share of Common Stock on the Ex-Date for such
distribution.

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     Such adjustment shall become effective immediately prior to the opening of business on the
Ex-Date for such distribution; provided that if “FMV” as set forth above is equal to or greater
than “SP0” as set forth above, in lieu of the foregoing adjustment, adequate provision
shall be made so that each Holder of Notes has the right to receive, for each $1,000 in principal
amount of Notes, the amount of Distributed Property such Holder would have received had such Holder
owned a number of shares of Common Stock equal to the Conversion Rate on the Ex-Date for such
distribution, without being required to convert the Notes. If such distribution is not so paid or
made, the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in
effect if such dividend or distribution had not been declared. If the Board of Directors
determines “FMV” for purposes of this Section 12.05(c) by reference to the actual or when issued
trading market for any securities, it must in doing so consider the prices in such market over the
same period used in computing the Last Reported Sale Prices of the Common Stock over the ten
consecutive Trading Day period ending on the Trading Day immediately preceding the Ex-Date for such
distribution.

     With respect to an adjustment pursuant to this subsection (c) where there has been a payment
of a dividend or other distribution on the Common Stock or shares of Capital Stock of any class or
series, or similar equity interest, of or relating to a Subsidiary or other business unit (a
“Spin-Off”), the Conversion Rate in effect immediately before 5:00 p.m., New York City time, on the
10th Trading Day immediately following, and including, the effective date of the Spin-Off shall be
increased based on the following formula:

Where,

CR0 = the Conversion Rate in effect immediately prior to the 10th Trading Day
immediately following the effective date of the Spin-Off;

CR ́ = the Conversion Rate in effect immediately after the 10th Trading Day immediately
following the effective date of the Spin-Off;

FMV0 = the average of the Last Reported Sale Prices of the Capital Stock or
similar equity interest distributed to holders of Common Stock applicable to one share of
Common Stock over the first 10 consecutive Trading Day period immediately following, and
including, the effective date of the Spin-Off; and

MP0 = the average of the Last Reported Sale Prices of the Common Stock over the
first 10 consecutive Trading Day period immediately following, and including, the
effective date of the Spin-Off.

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     Such adjustment shall occur on the 10th Trading Day from, and including, the effective date of
the Spin-Off; provided that in respect of any conversion within the 10 Trading Days immediately
following, and including, the effective date of any Spin-Off, references with respect to the
Spin-Off 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 Conversion Date in determining the
applicable Conversion Rate.

     Rights or warrants distributed by the Company to all holders of Common Stock, entitling the
holders thereof to subscribe for or purchase shares of the Company’s Capital Stock, including
Common Stock (either initially or under certain circumstances), which rights or warrants, until the
occurrence of a specified event or events (“Trigger Event”): (i) are deemed to be transferred with
such shares of Common Stock; (ii) are not exercisable; and (iii) are also issued in respect of
future issuances of Common Stock, shall be deemed not to have been distributed for purposes of this
Section 12.05 (and no adjustment to the Conversion Rate under this Section 12.05 shall be required)
until the occurrence of the earliest Trigger Event, whereupon such rights and warrants shall be
deemed to have been distributed and an appropriate adjustment (if any is required) to the
Conversion Rate shall be made under this subsection (c). If any such rights or warrants are subject
to events, upon the occurrence of which such rights or warrants become exercisable to purchase
different securities, evidences of Indebtedness or other assets, then the date of the occurrence of
any and each such event shall be deemed to be the date of distribution and record date with respect
to new rights or warrants with such rights (and a termination or expiration of the existing rights
or warrants without exercise by any of the holders thereof). In addition, in the event of any
distribution (or deemed distribution) of rights or warrants, or any Trigger Event or other event
(of the type described in the preceding sentence) with respect thereto that was counted for
purposes of calculating a distribution amount for which an adjustment to the Conversion Rate under
this Section 12.05 was made, (1) in the case of any such rights or warrants that shall all have
been redeemed or repurchased without exercise by any holders thereof, the Conversion Rate shall be
readjusted upon such final redemption or repurchase to give effect to such distribution or Trigger
Event, as the case may be, as though it were a cash distribution, equal to the per share redemption
or repurchase price received by a holder or holders of Common Stock with respect to such rights or
warrants (assuming such holder had retained such rights or warrants), made to all holders of Common
Stock as of the date of such redemption or repurchase, and (2) in the case of such rights or
warrants that shall have expired or been terminated without exercise by any holders thereof, the
Conversion Rate shall be readjusted as if such rights and warrants had not been issued.

     For purposes of this subsection (c) and subsections (a) and (b) of this Section 12.05, any
dividend or distribution to which this subsection (c) is applicable that also includes shares of
Common Stock to which subsection (a) of

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this Section 12.05 applies or rights or warrants to subscribe for or purchase shares of Common
Stock to which subsection (a) or (b) of this Section 12.05 applies (or both), shall be deemed
instead to be (1) a dividend or distribution of the evidences of Indebtedness, assets or shares of
Capital Stock other than such shares of Common Stock or rights or warrants, to which this
subsection (c) applies (and any Conversion Rate adjustment required by this subsection (c) with
respect to such dividend or distribution shall then be made) immediately followed by (2) a dividend
or distribution of such shares of Common Stock or such rights or warrants (and any further
Conversion Rate adjustment required by subsections (a) and (b) of this Section 12.05 with respect
to such dividend or distribution shall then be made), except (A) the Ex-Date of such dividend or
distribution shall under this subsection (c) be substituted as “the Ex-Date” within the meaning of
subsection (a) and subsection (b) and (B) any shares of Common Stock included in such dividend or
distribution shall not be deemed “outstanding immediately prior to the Ex-Date for such dividend or
distribution or immediately prior to the effective date of such share split or combination, as the
case may be” within the meaning of subsection (a) or “outstanding immediately prior to the Ex-Date
for such distribution” within the meaning of subsection (b).

     (d) In case the Company shall pay any cash dividends or distributions to all or substantially
all holders of its Common Stock (excluding the first dividend or distribution with an Ex-Date in
any calendar quarter that does not exceed the Dividend Threshold Amount), the Conversion Rate shall
be adjusted based on the following formula:

where,

CR0 = the Conversion Rate in effect immediately prior to the Ex-Date for such
distribution;

CR ́ = the Conversion Rate in effect immediately after the Ex-Date for such distribution;

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

T = an amount (the “Dividend Threshold Amount”), which shall initially be $0.11 per share
of Common Stock, subject to adjustment in a manner inversely proportional to adjustments
to the Conversion Rate (excluding adjustments to the Conversion Rate pursuant to this
Section 12.05(d)); provided that in the case of any dividend or distribution with an
Ex-Date in a calendar quarter that his not the first dividend or distribution with an

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Ex-Date in such calendar quarter, the Dividend Threshold Amount shall be deemed to be
zero; and

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

     Such adjustment shall become effective immediately prior to the opening of business on the
Ex-Date for such dividend or distribution; provided that if the portion of the cash so distributed
applicable to one share of the Common Stock is equal to or greater than SP0 as set forth
above, in lieu of the foregoing adjustment, adequate provision shall be made so that each Holder of
Notes shall receive on the date on which such cash dividend is distributed to holders of Common
Stock, for each $1,000 in principal amount of Notes, the amount of cash such Holder would have
received had such Holder owned a number of shares equal to the Conversion Rate on the Ex-Date for
such distribution, without being required to convert the Notes. If such dividend or distribution is
not so paid or made, the Conversion Rate shall again be adjusted to be the Conversion Rate that
would then be in effect if such dividend or distribution had not been declared.

     For the avoidance of doubt, for purposes of this subsection (d), in the event of any
reclassification of the Common Stock, as a result of which the Notes become convertible into more
than one class of Common Stock, if an adjustment to the Conversion Rate is required pursuant to
this subsection (d), references in this Section 12.05 to one share of Common Stock or Last Reported
Sale Price of one share of Common Stock shall be deemed to refer to a unit or to the price of a
unit consisting of the number of shares of each class of Common Stock into which the Notes are then
convertible equal to the numbers of shares of such class issued in respect of one share of Common
Stock in such reclassification. The above provisions of this paragraph shall similarly apply to
successive reclassifications.

     (e) In case the Company or any of its Subsidiaries make a payment in respect of a tender offer
or exchange offer for all or any portion of the Common Stock, 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 Conversion Rate
shall be increased based on the following formula:

where,

CR0 = the Conversion Rate in effect on the date such tender or exchange offer
expires;

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CR ́ = the Conversion Rate in effect on the day next succeeding the date such tender or
exchange offer expires;

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

OS0 = the number of shares of Common Stock outstanding immediately prior to the
date such tender or exchange offer expires;

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

SP’ = the Last Reported Sale Price of Common Stock on the Trading Day next succeeding the
date such tender or exchange offer expires.

     Such adjustment shall become effective immediately after close of business on the Trading Day
next succeeding the date such tender or exchange offer expires. If the Company or its Subsidiary is
obligated to purchase shares of Common Stock pursuant to any such tender or exchange offer, but the
Company or its Subsidiary is permanently prevented by applicable law from effecting all or any such
purchases or all or any portion of such purchases are rescinded, the Conversion Rate shall again be
adjusted to be the Conversion Rate that would then be in effect if such tender or exchange offer
had not been made or had only been made in respect of the purchases that had been effected.

     (f) In case the Company or any of its subsidiaries make a payment in respect of a repurchase
of Common Stock, to the extent that the cash and value of any other consideration included in the
payment per share of Common Stock exceeds the Current Market Price of Common Stock (such excess,
the “Repurchase Premium”), and such repurchase, together with all other repurchases of Common Stock
by the Company or any of its subsidiaries involving a Repurchase Premium concluded within the
preceding 12 months, not triggering an adjustment to the Conversion Price (except for repurchases
of Common Stock effected by the Company or its agents in conformity with Rule 10b-18 under the
Exchange Act), results in the payment by the Company of an aggregate consideration exceeding an
amount equal to 10% of the Company’s Market Capitalization, the Conversion Rate will be increased
based on the following formula:

  where,

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  CR0 = the Conversion Rate in effect immediately prior to the fifth Trading Day
immediately following the date of the repurchase triggering the adjustment;

  CR’ = the Conversion Rate in effect immediately after the scheduled close of trading on the
fifth Trading Day immediately following the date of the repurchase triggering the adjustment;

  FMV = the Fair Market Value;

  RP = the aggregate amount of all of the repurchase premiums paid in connection with such
repurchases; and

  OS = the number of shares of Common Stock outstanding on the day following the date of the
repurchase triggering the adjustment, as determined by the Board of Directors.

     For purposes of this Section 12.05(f), “Fair Market Value” means the average of the Last
Reported Sale Prices of Common Stock for the five consecutive Trading Days beginning on the Trading
Day following the date of the repurchase triggering the adjustment; “Market Capitalization” means
the Fair Market Value multiplied by the number of shares of Common Stock then outstanding on the
date of the repurchase triggering the adjustment immediately prior to such repurchase; and “Current
Market Price” means the average of the Last Reported Sale Prices for the ten consecutive Trading
Days ending on the date of the repurchase triggering the adjustment.

     The adjustment to the Conversion Rate under this Section 12.05(f) will occur immediately after
the scheduled close of trading on the fifth Trading Day from, and including, the date of the
repurchase triggering the adjustment; provided that in respect of any conversion within the
five Trading Days immediately following, and including, the date of the repurchase triggering the
adjustment, references with respect to five Trading Days shall be deemed replaced with such lesser
number of Trading Days as have elapsed between the date of the repurchase triggering the adjustment
and the Conversion Date in determining the applicable Conversion Rate. If a payment would cause an
adjustment to the Conversion Rate under both Section 12.05(e) and this Section 12.05(f), the
provisions of this Section 12.05(f) shall control.

     (g) If the application of any of the foregoing formulas (other than in respect of a share
combination) would result in a decrease in the Conversion Rate, no adjustment to the Conversion
Rate will be made.

     If the effective date of any Adjustment Event occurs during an Observation Period for any
Notes, then the Company will make proportional adjustments to the number of deliverable shares for
each VWAP Trading Day

89

 

during the portion of the Observation Period preceding the effective date of such Adjustment Event.

     For purposes of this Section 12.05 the term “record date” shall mean, with respect to any
dividend, distribution or other transaction or event in which the holders of Common Stock have the
right to receive any cash, securities or other property or in which the Common Stock (or other
applicable security) is exchanged for or converted into any combination of cash, securities or
other property, the date fixed for determination of shareholders entitled to receive such cash,
securities or other property (whether such date is fixed by the Board of Directors or by statute,
contract or otherwise).

     (h) In addition to those required by subsections (a), (b), (c), (d), (e) and (f) of this
Section 12.05, and to the extent permitted by applicable law and the rules of the New York Stock
Exchange or any other securities exchange on which the Common Stock is then listed, the Company
from time to time may increase the applicable Conversion Rate by any amount for a period of at
least 20 calendar days if the Board of Directors determines (such determination will be conclusive)
that such increase would be in the Company’s best interest. Whenever the applicable Conversion Rate
is increased pursuant to the preceding sentence, the Company shall notify the Holder of each Note
at least 15 calendar days prior to the date the increased applicable Conversion Rate takes effect,
and such notice shall state the increased applicable Conversion Rate and the period during which it
will be in effect. In addition, the Company may also (but is not required to) increase the
applicable Conversion Rate to avoid or diminish any income tax to holders of Common Stock or rights
to purchase Common Stock in connection with any dividend or distribution of shares (or rights to
acquire shares) or similar event.

     (i) Except as described in Sections 12.01 and 12.05 of this Indenture, the Company will not
adjust the Conversion Rate. 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 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

90

 

security not described in clause (ii) above and outstanding as of the date of this
Indenture;

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

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

     (j) All calculations and other determinations under this Article 12 shall be made by the
Company and shall be made to the nearest cent or to the nearest one-ten thousandth (1/10,000) of a
share, as the case may be.

     (k) In any case in which this Section 12.05 provides that an adjustment shall become effective
immediately after (1) the Ex-Date for an event or (2) the last date on which tenders or exchanges
may be made pursuant to any tender or exchange offer pursuant to subsection (e) of this Section
12.05 (each an “Adjustment Determination Date”), the Company may elect to defer until the
occurrence of the applicable Adjustment Event (as hereinafter defined) (x) issuing to the Holder of
any Note converted after such Adjustment Determination Date and before the occurrence of such
Adjustment Event, the additional cash and, if applicable, shares of Common Stock or other
securities issuable upon such conversion by reason of the adjustment required by such Adjustment
Event over and above the amounts deliverable upon such conversion before giving effect to such
adjustment and (y) paying to such Holder any amount in cash in lieu of any fraction pursuant to
Section 12.03. For purposes of this subsection (i), the term “Adjustment Event” shall mean:

     (i) in any case referred to in clause (1), the date any dividend or distribution of
Common Stock, shares of Capital Stock, evidences of Indebtedness, other assets or property
or cash is paid or made, the effective date of any share split or combination or the date
of expiration of any rights or warrants, and

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

     (l) For purposes of this Section 12.05, the number of shares of Common Stock at any time
outstanding shall not include shares held in the treasury of the Company but shall include shares
issuable in respect of scrip certificates issued in lieu of fractions of shares of Common Stock.

     (m) For the avoidance of doubt, if a Holder converts Notes prior to the Make-Whole Reference
Date, and the related Make-Whole Fundamental Change does not occur, the Holder shall not be
entitled to Additional Shares in connection with such conversion.

91

 

     (n) With respect to a conversion of Notes pursuant to this Article 12, at and after the close
of business on the last VWAP Trading Day (the “Relevant Date”) of the related Observation Period,
the Person in whose name any certificate representing any shares of Common Stock issuable upon such
conversion is registered shall be treated as a stockholder of record of the Company on such
Relevant Date; provided, however, that if any such shares of Common Stock constitute Additional
Shares, then the Relevant Date with respect to such shares that constitute Additional Shares shall
instead be deemed to be the later of (i) the last VWAP Trading Day of the related Observation
Period and (ii) the Effective Date of the Fundamental Change resulting in the Additional Shares. On
and after the Conversion Date with respect to a conversion of Notes pursuant hereto, all rights of
the Holders of such Notes shall terminate, other than the right to receive the consideration
deliverable upon conversion of such Notes as provided herein. A Holder of a Note is not entitled,
as such, to any rights of a holder of Common Stock until, if such Holder converts such Note and is
entitled pursuant hereto to receive shares of Common Stock in respect of such conversion, the close
of business on the Relevant Date or respective Relevant Dates, as the case may be, with respect to
such conversion.

     (o) Whenever any provision of this Article 12 requires a calculation of Last Reported Sale
Prices or Daily VWAP over a span of multiple days, the Company shall make appropriate adjustments
to the Daily Settlement Amounts (determined in good faith by the Board of Directors) to account for
any adjustment to the Conversion Rate that becomes effective, or any event requiring an adjustment
to the Conversion Rate where the Ex-Date of the event occurs, at any time during the period from
which such calculation is to be calculated; provided that such adjustments shall only be made to
the Daily Settlement Amounts relating to days prior to the date that the adjustment to the
Conversion Rate becomes effective.

     SECTION 12.06 Notice of Adjustments of Conversion Rate.

     Whenever the Conversion Rate is adjusted as herein provided:

     (a) the Company shall compute the adjusted Conversion Rate in accordance with Section 12.05
and shall prepare an Officer’s Certificate signed by the Chief Financial Officer of the Company
setting forth the adjusted Conversion Rate and showing in reasonable detail the facts upon which
such adjustment is based, and such certificate shall promptly be filed with the Trustee and with
each Conversion Agent (if other than the Trustee); and

     (b) upon each such adjustment, a notice stating that the Conversion Rate has been adjusted and
setting forth the adjusted Conversion Rate shall be required, such notice shall be provided by the
Company to all Holders in accordance with Section 1.07.

92

 

     Neither the Trustee nor any Conversion Agent shall be under any duty or responsibility with
respect to any such certificate or the information and calculations contained therein, except to
exhibit the same to any Holder of Notes desiring inspection thereof at its office during normal
business hours.

     SECTION 12.07 Company to Reserve Common Stock.

     The Company shall at all times reserve and keep available, free from preemptive rights, out of
its authorized but unissued Common Stock, for the purpose of effecting the conversion of Notes, the
full number of shares of Common Stock then issuable upon the conversion of all Outstanding Notes.

     SECTION 12.08 Taxes on Conversions.

     Except as provided in the next sentence, the Company shall pay all documentary, stamp or
similar issue or transfer tax due that may be payable in respect of the issue or delivery of shares
of Common Stock on conversion of Notes pursuant hereto. The Company shall not, however, be
required, and the Holder shall instead be required, to pay any tax or duty that may be payable in
respect of (i) income of the Holder, or (ii) 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 and until 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 12.09 Certain Covenants.

     Before taking any action which would cause an adjustment reducing the Conversion Rate below
the then par value, if any, of the shares of Common Stock issuable upon conversion of the Notes,
the Company shall take all corporate action, if any, which it reasonably determines may be
necessary in order that the Company may validly and legally issue shares of such Common Stock at
such adjusted Conversion Rate.

     The Company covenants that all shares of Common Stock issued upon conversion of Notes shall be
fully paid and non-assessable by the Company and free from all liens created by the Company.

     The Company further covenants that if at any time the Common Stock shall be listed for trading
on any other national securities exchange the Company shall, if permitted and required by the rules
of such exchange, list and keep listed, so long as the Common Stock shall be so listed on such
exchange, all Common Stock issuable upon conversion of the Notes.

93

 

     SECTION 12.10 Cancellation of Converted Notes.

     All Notes delivered for conversion shall be delivered to the Trustee or its agent and canceled
by the Trustee as provided in Section 3.08.

     SECTION 12.11 Company Responsible for Making Calculations.

     Except as otherwise provided herein, the Company will be responsible for making all
calculations required under the Notes and this Indenture. The Company will make these calculations
in good faith and absent manifest error, these calculations will be final and binding on the
Holders. The Company will provide a schedule of such calculations to each of the Trustee and the
Conversion Agent, and each of the Trustee and the Conversion Agent is entitled to conclusively rely
upon the accuracy of such calculations without independent verification. The Trustee will forward
the Company’s calculations to any Holder upon the written request of such Holder.

     SECTION 12.12 Provision in Case of Effect of Reclassification, Consolidation, Merger or Sale.

     If any of the following events occur, namely (i) any reclassification or change of the
outstanding shares of Common Stock (other than a change in par value, or from par value to no par
value, or from no par value to par value, or as a result of a split, subdivision or combination),
(ii) any consolidation, binding share exchange, recapitalization, reclassification, merger,
combination or other similar event, or (iii) any sale or conveyance of all or substantially all of
the property and assets of the Company to any other Person, in any case as a result of which
holders of outstanding Common Stock shall be entitled to receive cash, securities or other property
or assets with respect to or in exchange for their shares of Common Stock (any such event described
in clauses (i) through (iv) a “Merger Event”), then:

     (a) the Company or the successor or purchasing Person, as the case may be, shall execute with
the Trustee a supplemental indenture (which shall comply with the Trust Indenture Act as in force
at the date of execution of such supplemental indenture if such supplemental indenture is then
required to so comply) permitted under Section 8.01(f) providing for the conversion and settlement
of the Notes as set forth in this Indenture. Such supplemental indenture shall provide for
adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided
for in this Article 12 and the Trustee may conclusively rely on the determination by the Company of
the equivalency of such adjustments. If, in the case of any Merger Event, the Reference Property
includes shares of stock or other securities and assets of a company other than the successor or
purchasing company, as the case may be, in such change of control, consolidation, binding share
exchange, recapitalization, reclassification, merger, combination, or sale or conveyance, then such
supplemental indenture shall also

94

 

be executed by such other company and shall contain such additional provisions to protect the
interests of the Holders of the Notes as the Board of Directors shall reasonably consider necessary
by reason of the foregoing, including to the extent required by the Board of Directors and
practicable the provisions providing for the repurchase rights set forth in Article 11.

     In the event a supplemental indenture is executed pursuant to this Section 12.12, the Company
shall promptly file with the Trustee an Officer’s Certificate briefly stating the reasons
therefore, the kind or amount of cash, securities, property or assets that will constitute the
Reference Property after any such Merger Event, any adjustment to be made with respect thereto and
that all conditions precedent have been complied with, and shall promptly mail notice thereof to
all Holders.

     If any securities to be provided for the purpose of conversion of Notes hereunder require
registration with or approval of any governmental authority under any federal or state law before
such securities may be validly issued upon conversion, each supplemental indenture executed
pursuant to this Section 12.12 shall provide that the Company or the successor or the purchasing
Person, as the case may be, or if the Reference Property includes shares of stock or other
securities and assets of a company other than the successor or purchasing company, as the case may
be, then such company, shall use all commercially reasonable efforts, to the extent then permitted
by the rules and interpretations of the Commission (or any successor thereto), to secure such
registration or approval in connection with the conversion of Notes.

     (b) Notwithstanding the provisions of Section 12.02(a) and Section 12.02(b), and subject to
the provisions of Section 12.01, at the effective time of such Merger Event, the right to convert
each $1,000 in principal amount of Notes shall be changed to a right to convert such Notes by
reference to the kind and amount of cash, securities, other property or assets that a holder of a
number of shares of Common Stock equal to the Conversion Rate immediately prior to such transaction
would have owned or been entitled to receive (the “Reference Property”) such that from and after
the effective time of such transaction, a Holder shall be entitled thereafter to convert its Notes
into cash up to the aggregate Principal Portion thereof and, in lieu of the shares of Common Stock
otherwise deliverable, the same type (and in the same proportion) of Reference Property, based on
the Daily Settlement Amounts of Reference Property in an amount equal to the applicable Conversion
Rate, as described under Section 12.02(a). For purposes of determining the constitution of
Reference Property, the type and amount of consideration that a holder of Common Stock would have
been entitled to in the case of change of controls, consolidations, binding share exchanges,
recapitalizations, reclassifications, mergers, combinations, or sales or transfers of assets or
other transactions that cause the Common Stock to be converted into the right to receive more than
a single type of consideration (determined, based in part upon any form of stockholder election)
shall be

95

 

deemed to be the (i) weighted average of the types and amounts of consideration received by
the holders of Common Stock that affirmatively make such an election or (ii) if no holders of
Common Stock affirmatively make such election, the types and amounts of consideration actually
received by such holders. The Company shall 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 in accordance with the provisions of this Article 12 prior
to the effective date.

     (c) The Company shall cause notice of the execution of such supplemental indenture to be
mailed to each Holder, at his address appearing on the Register provided for in this Indenture,
within 20 calendar days after execution thereof. Failure to deliver such notice shall not affect
the legality or validity of such supplemental indenture.

     (d) The above provisions of this Section 12.12 shall similarly apply to successive Merger
Events.

     SECTION 12.13 Responsibility of Trustee for Conversion Provisions.

The Trustee and any Conversion Agent shall not at any time be under any duty or responsibility to
any Holder of Notes to determine whether any facts exist which may require any adjustment of the
Conversion Rate, or with respect to the nature or extent of any such adjustment when made, or with
respect to the method employed, herein or in any supplemental indenture provided to be employed, in
making the same, or whether a supplemental indenture need be entered into. Neither the Trustee nor
any Conversion Agent shall be accountable with respect to the validity or value (or the kind or
amount) of any Common Stock, or of any other securities or property or cash, which may at any time
be issued or delivered upon the conversion of any Notes; and it or they do not make any
representation with respect thereto. Neither the Trustee nor any Conversion Agent shall be
responsible for any failure of the Company to make or calculate any cash payment or to issue,
transfer or deliver any shares of Common Stock or share certificates or other securities or
property or cash upon the surrender of any Note for the purpose of conversion; and the Trustee and
any Conversion Agent shall not be responsible for any failure of the Company to comply with any of
the covenants of the Company contained in this Article 12. Without limiting the generality of the
foregoing, neither the Trustee nor any Conversion Agent shall be under any responsibility to
determine the correctness of any provision contained in any supplemental indenture entered into
pursuant to Section 8.01 relating either to the kind or amount of shares of stock or securities or
other property or assets (including cash) receivable for Holders upon the conversion of Notes after
any event referred to in Section 12.12 or to any adjustment to be made with respect thereto, but,
subject to the provisions of Section 6.03, may accept as conclusive evidence of the correctness of
any such provisions, and shall be protected in relying upon, the Officer’s Certificate (which the
Company shall be obligated to

96

 

file with the Trustee prior to the execution of any such supplemental indenture) with respect
thereto. Neither the Trustee nor any Conversion Agent shall be responsible for determining whether
any event contemplated by Section 12.12 has occurred which makes the securities eligible for
conversion until the Company has delivered to the Trustee and any Conversion Agent an Officer’s
Certificate stating that such event has occurred, on which Officer’s Certificate the Trustee and
any such Conversion Agent may conclusively rely, and the Company agrees to deliver such Officer’s
Certificate to the Trustee and any such Conversion Agent immediately after the occurrence of any
such event.

 

     This instrument may be executed in any number of counterparts, each of which so executed shall
be deemed to be an original, but all such counterparts shall together constitute but one and the
same instrument.

97

 

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

	 	 	 	 	 
	 	HORIZON LINES, INC.

 	 
	 	By:  	/s/
Robert S. Zuckerman 	 
	 	 	Name: Robert S. Zuckerman	 
	 	 	Title:   Secretary	 
	 
	 	THE BANK OF NEW YORK TRUST COMPANY, N.A.,

as Trustee

 	 
	 	By:  	/s/
Tina D. Gonzalez 	 
	 	 	Name: Tina D. Gonzalez	 
	 	 	Title:   Assistant Treasurer	 

98

 

	 	 	 	 	 

SCHEDULE A

     The following table sets forth the “Stock Price,” “Make-Whole Reference Date” and the
adjustments to the Conversion Rate, expressed as a number of Additional Shares to be received per
$1,000 in principal amount of the Notes, in the event of a Make-Whole Fundamental Change pursuant
to the Indenture:

Make-Whole Reference Date

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stock	 	 	 	August 8,	 	August 15,	 	August 15,	 	August 15,	 	August 15,	 	August 15,
	Price	 	 	 	2007	 	2008	 	2009	 	2010	 	2011	 	2012
	$	28.56	 	 	 

	 	 	8.0801	 	 	 	7.9948	 	 	 	7.8180	 	 	 	7.6351	 	 	 	7.4808	 	 	 	8.0801	 
	$	30.00	 	 	 

	 	 	7.2428	 	 	 	7.0962	 	 	 	6.8593	 	 	 	6.5745	 	 	 	6.2263	 	 	 	6.3995	 
	$	32.50	 	 	 

	 	 	6.0157	 	 	 	5.8132	 	 	 	5.5053	 	 	 	5.0964	 	 	 	4.5011	 	 	 	3.8354	 
	$	35.00	 	 	 

	 	 	5.0384	 	 	 	4.8043	 	 	 	4.4584	 	 	 	3.9799	 	 	 	3.2422	 	 	 	1.6376	 
	$	37.50	 	 	 

	 	 	4.2507	 	 	 	4.0023	 	 	 	3.6420	 	 	 	3.1346	 	 	 	2.3399	 	 	 	0.0000	 
	$	40.00	 	 	 

	 	 	3.6088	 	 	 	3.3580	 	 	 	2.9998	 	 	 	2.4922	 	 	 	1.7023	 	 	 	0.0000	 
	$	45.00	 	 	 

	 	 	2.6411	 	 	 	2.4072	 	 	 	2.0818	 	 	 	1.6238	 	 	 	0.9451	 	 	 	0.0000	 
	$	50.00	 	 	 

	 	 	1.9622	 	 	 	1.7584	 	 	 	1.4823	 	 	 	1.1011	 	 	 	0.5747	 	 	 	0.0000	 
	$	60.00	 	 	 

	 	 	1.1075	 	 	 	0.9684	 	 	 	0.7904	 	 	 	0.5563	 	 	 	0.2758	 	 	 	0.0000	 
	$	70.00	 	 	 

	 	 	0.6220	 	 	 	0.5339	 	 	 	0.4294	 	 	 	0.2964	 	 	 	0.1540	 	 	 	0.0000	 
	$	80.00	 	 	 

	 	 	0.3325	 	 	 	0.2785	 	 	 	0.2225	 	 	 	0.1499	 	 	 	0.0790	 	 	 	0.0000	 
	$	100.00	 	 	 

	 	 	0.0559	 	 	 	0.0323	 	 	 	0.0250	 	 	 	0.0053	 	 	 	0.0000	 	 	 	0.0000Exhibit 10.1

 

Exhibit 10.1

Horizon Lines, Inc.

4.25% Convertible Senior Notes due 2012

 

Purchase Agreement

August 1, 2007

Goldman, Sachs & Co.

Banc of America Securities LLC

Wachovia Capital Markets, LLC
  c/o
Goldman, Sachs & Co.

85 Broad Street

New York, New York 10004

Ladies and Gentlemen:

     Horizon Lines, Inc., a Delaware corporation (the “Company”), proposes, subject to the terms
and conditions stated herein, to issue and sell to the Purchasers named in Schedule I hereto (the
“Purchasers”) an aggregate of $300,000,000 in principal amount (the “Firm Securities”) of its 4.25%
Convertible Senior Notes due 2012 (the “Notes”), which are convertible into cash and shares of the
Company’s common stock, par value $0.01 per share (“Stock”), upon the occurrence of certain
circumstances under the terms of an indenture to be dated August 8, 2007 (the “Indenture”) between
the Company and The Bank of New York, as trustee (the “Trustee”), and, at the election of the
Purchasers, up to an aggregate of $30,000,000 in additional aggregate principal amount of Notes
(the “Optional Securities”) (the Firm Securities and the Optional Securities which the Purchasers
elect to purchase pursuant to Section 2 hereof are herein collectively called the “Securities”).

1. The Company represents and warrants to, and agrees with, each of the Purchasers that:

     (a) A preliminary offering circular, dated July 31, 2007 (the “Preliminary Offering
Circular”), has been prepared, and an offering circular, dated August 1, 2007 (the “Offering
Circular”), will be prepared in connection with the offering of the Securities and the Stock
issuable upon conversion thereof. The Preliminary Offering Circular, as amended and
supplemented immediately prior to the Applicable Time (as defined in Section 1(b)), is
hereinafter referred to as the “Pricing Circular”. Any reference to the Preliminary
Offering Circular, the Pricing Circular or the Offering Circular shall be deemed to refer to
and include the Company’s most recent Annual Report on Form 10-K and all subsequent
documents filed with the United States Securities and Exchange Commission (the “Commission”)
pursuant to Section 13(a), 13(c) or 15(d) of the United States Securities Exchange Act of
1934, as amended (the “Exchange Act”), after December 24, 2006 and on or prior to the date
of such circular (to the extent incorporated by reference therein) and any reference to the
Preliminary Offering Circular or the Offering Circular, as the case may be, as amended or
supplemented, as of any specified date, shall be deemed to include (i) any documents filed
with the

1

 

Commission pursuant to Section 13(a), 13(c) or 15(d) of the Exchange Act after the date
of the Preliminary Offering Circular or the Offering Circular, as the case may be, and prior
to such specified date (to the extent incorporated by reference therein) and (ii) any
Additional Issuer Information (as defined in Section 5(f)) furnished by the Company prior to
the completion of the distribution of the Securities; and all documents filed under the
Exchange Act and so deemed to be included in the Preliminary Offering Circular, the Pricing
Circular or the Offering Circular, as the case may be, or any amendment or supplement
thereto are hereinafter called the “Exchange Act Reports”. The Exchange Act Reports, when
they were or are filed with the Commission, conformed or will conform in all material
respects to the applicable requirements of the Exchange Act and the applicable rules and
regulations of the Commission thereunder; and no such documents were filed with the
Commission since the Commission’s close of business on the business day immediately prior to
the date of this Agreement and prior to the execution of this Agreement, except as set forth
on Schedule II(a) hereof. The Preliminary Offering Circular and any amendments or
supplements thereto, the Offering Circular and any amendments or supplements thereto and the
Exchange Act Reports (i) did not and will not, in each case as of their respective dates,
contain an untrue statement of a material fact or (ii) omit to state a material fact
necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading; provided, however, that this representation and
warranty shall not apply to any statements or omissions made in reliance upon and in
conformity with information furnished in writing to the Company by a Purchaser through
Goldman, Sachs & Co. expressly for use therein;

     (b) For the purposes of this Agreement, the “Applicable Time” is 8:00 a.m. (Eastern
Daylight Time) on August 2, 2007; the Pricing Circular as supplemented by the information
set forth in Schedule III hereto, taken together (collectively, the “Pricing Disclosure
Package”) as of the Applicable Time, will not include any untrue statement of a material
fact or omit to state any material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading; and each
Company Supplemental Disclosure Document (as defined in Section 6(a)(ii)) listed on Schedule
II(b) hereto does not conflict with the information contained in the Pricing Circular or the
Offering Circular and each such Company Supplemental Disclosure Document, as supplemented by
and taken together with the Pricing Disclosure Package as of the Applicable Time, (i) will
not include any untrue statement of a material fact or (ii) omit to state any material fact
necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading; provided, however, that this representation and
warranty shall not apply to statements or omissions made in a Company Supplemental
Disclosure Document in reliance upon and in conformity with information furnished in writing
to the Company by a Purchaser through Goldman, Sachs & Co. expressly for use therein;

     (c) Neither the Company nor any of its subsidiaries has sustained, since the date of
the latest audited financial statements included in the Pricing Circular, any material loss
or interference with its business from fire, explosion, flood or other calamity, whether or
not covered by insurance, or from any labor dispute or court or governmental action, order
or decree, otherwise than as set forth or contemplated in the Pricing Circular; and, since
the respective dates as of which information is given in the Pricing Circular, there has not
been any change in the capital stock (excluding grants of restricted shares to employees or
directors of the Company, the issuance of shares pursuant to the Company’s employee stock
purchase plan and the exercise of outstanding stock options) or long-term debt of the
Company or any of its subsidiaries or any material adverse change, or any development
involving a prospective

2

 

material adverse change, in or affecting the general affairs, management, financial
position, stockholders’ equity or results of operations of the Company and its subsidiaries,
taken as a whole, otherwise than as set forth or contemplated in the Pricing Circular;

     (d) The Company and its subsidiaries have good and marketable title in fee simple to
all real property and good and marketable title to all personal property owned by them, in
each case free and clear of all liens, encumbrances and defects except such as are described
in the Pricing Circular or such as do not materially affect the value of such property and
do not interfere with the use made and proposed to be made of such property by the Company
and its subsidiaries; and any real property and buildings held under lease by the Company
and its subsidiaries are held by them under valid, subsisting and enforceable leases with
only such exceptions as are not material and do not interfere with the use made and proposed
to be made of such property and buildings by the Company and its subsidiaries;

     (e) The Company has been duly incorporated and is validly existing as a corporation in
good standing under the laws of the State of Delaware, with power and authority (corporate
and other) to own its properties and conduct its business as described in the Pricing
Circular, and has been duly qualified as a foreign corporation for the transaction of
business and is in good standing under the laws of each other jurisdiction in which it owns
or leases properties or conducts any business so as to require such qualification, or is
subject to no material liability or disability by reason of the failure to be so qualified
in any such jurisdiction; and each subsidiary of the Company has been duly incorporated or
organized, as applicable, and is validly existing as a corporation or other organization in
good standing under the laws of its jurisdiction of incorporation or organization;

     (f) The Company has an authorized capitalization as set forth in the Pricing Circular,
and all of the issued shares of capital stock of the Company have been duly and validly
authorized and issued and are fully paid and non-assessable; the shares of Stock initially
issuable upon conversion of the Securities have been duly and validly authorized and
reserved for issuance and, when issued and delivered in accordance with the provisions of
the Securities and the Indenture referred to below, will be duly and validly issued, fully
paid and non-assessable and will conform to the description of the Stock contained in the
Pricing Disclosure Package and the Offering Circular; and all of the issued shares of
capital stock of each subsidiary of the Company have been duly and validly authorized and
issued, are fully paid and non-assessable and (except as otherwise set forth in the Pricing
Circular) are owned directly or indirectly by the Company, free and clear of all liens,
encumbrances, equities or claims;

     (g) The Securities have been duly authorized and, when issued and delivered pursuant to
this Agreement and authenticated by the Trustee, will have been duly executed,
authenticated, issued and delivered and will constitute valid and legally binding
obligations of the Company entitled to the benefits provided by the Indenture, under which
they are to be issued, which will be substantially in the form previously delivered to you;
the Indenture has been duly authorized and, when executed and delivered by the Company and
the Trustee, the Indenture will constitute a valid and legally binding instrument,
enforceable in accordance with its terms, subject, as to enforcement, to bankruptcy,
insolvency, reorganization and other laws of general applicability relating to or affecting
creditors’ rights and to general equity principles; and the Securities and the Indenture
will conform to the descriptions thereof in the Pricing Disclosure Package and the Offering
Circular and will be in substantially the form previously delivered to you;

3

 

     (h) The Registration Rights Agreement to be dated as of August 8, 2007 (the
“Registration Rights Agreement”), which will be substantially in the form previously
delivered to you, has been duly authorized, and as of the First Time of Delivery (as defined
herein), will have been duly executed and delivered by the Company, and will constitute a
valid and legally binding instrument enforceable in accordance with its terms, subject, as
to enforcement, to bankruptcy, insolvency, reorganization and other laws of general
applicability relating to or affecting creditors’ rights and to general equity principles;
and the Registration Rights Agreement will conform to the descriptions thereof in the
Pricing Disclosure Package and the Offering Circular;

     (i) None of the transactions contemplated by this Agreement (including, without
limitation, the use of the proceeds from the sale of the Securities) will violate or result
in a violation of Section 7 of the Exchange Act, or any regulation promulgated thereunder,
including, without limitation, Regulations T, U, and X of the Board of Governors of the
Federal Reserve System;

     (j) Except as described in the Pricing Circular, prior to the date hereof, neither the
Company nor any of its affiliates has taken any action which is designed to or which has
constituted or which might have been expected to cause or result in stabilization or
manipulation of the price of any security of the Company in connection with the offering of
the Securities;

     (k) The issue and sale of the Securities and the compliance by the Company with all of
the provisions of the Securities, the Indenture, the Registration Rights Agreement and this
Agreement and the consummation of the transactions herein and therein contemplated will not
(a) conflict with or result in a breach or violation of any of the terms or provisions of,
or constitute a default under, any indenture, mortgage, deed of trust, loan agreement or
other agreement or instrument to which the Company or any of its subsidiaries is a party or
by which the Company or any of its subsidiaries is bound or to which any of the property or
assets of the Company or any of its subsidiaries is subject other than any conflict, breach,
violation or default that would not, individually or in the aggregate, have a Material
Adverse Effect, (b) result in any violation of the provisions of the Certificate of
Incorporation or By-laws of the Company or (c) result in any violation of any statute or any
order, rule or regulation of any court or governmental agency or body having jurisdiction
over the Company or any of its subsidiaries or any of their properties; and no consent,
approval, authorization, order, registration or qualification of or with any such court or
governmental agency or body is required for the issue and sale of the Securities or the
consummation by the Company of the transactions contemplated by this Agreement, the
Indenture or the Registration Rights Agreement, except for the filing of a registration
statement by the Company with the Commission pursuant to the United States Securities Act of
1933, as amended (the “Act”), pursuant to the Registration Rights Agreement and such
consents, approvals, authorizations, registrations or qualifications as may be required
under state securities or Blue Sky laws in connection with the purchase and distribution of
the Securities by the Purchasers;

     (l) Neither the Company nor any of its subsidiaries is (i) in violation of its
Certificate of Incorporation or By-laws or (ii) in default in the performance or observance
of any obligation, covenant or condition contained in any indenture, mortgage, deed of
trust, loan agreement, lease or other agreement or instrument to which it is a party or by
which it or any of its properties may be bound other than, in the case of clause (ii) of
this paragraph, any such default that would not have a Material Adverse Effect;

4

 

     (m) The statements set forth in the Pricing Circular and the Offering Circular under
the caption “Description of the Notes” and “Description of Capital Stock”, insofar as they
purport to constitute a summary of the terms of the Securities and the Stock, under the
caption “Certain U.S. Federal Income Tax Considerations,” and under the caption “Plan of
Distribution,” insofar as they purport to describe the provisions of the laws and documents
referred to therein, are accurate and fair summaries in all material respects;

     (n) Other than as set forth in the Pricing Circular, there are no legal or governmental
proceedings pending to which the Company or any of its subsidiaries is a party or of which
any property of the Company or any of its subsidiaries is the subject which, if determined
adversely to the Company or any of its subsidiaries, would individually or in the aggregate
have a material adverse effect on the current or future financial position, stockholders’
equity or results of operations of the Company and its subsidiaries (“Material Adverse
Effect”); and to the best of the Company’s knowledge, no such proceedings are threatened or
contemplated by governmental authorities or threatened by others;

     (o) When the Securities are issued and delivered pursuant to this Agreement, the
Securities will not be of the same class (within the meaning of Rule 144A under the
Securities Act) as securities which are listed on a national securities exchange registered
under Section 6 of the Exchange Act or quoted in a U.S. automated inter-dealer quotation
system;

     (p) The Company is subject to Section 13 or 15(d) of the Exchange Act;

     (q) The Company is not, and after giving effect to the offering and sale of the
Securities and the application of the proceeds thereof, will not be an “investment company”,
as such term is defined in the United States Investment Company Act of 1940, as amended (the
“Investment Company Act”);

     (r) Neither the Company nor any person acting on its behalf (other than the Purchasers,
as to which no representation or warranty is made) has offered or sold the Securities by
means of any general solicitation or general advertising within the meaning of Rule 502(c)
under the Act;

     (s) Within the preceding six months, neither the Company nor any other person acting on
behalf of the Company has offered or sold to any person any Securities, or any securities of
the same or a similar class as the Securities, other than Securities offered or sold to the
Purchasers hereunder or grants of restricted shares to employees or directors of the
Company, the issuance of shares pursuant to the Company’s employee stock purchase plan or
the exercise of outstanding options. The Company will take reasonable precautions designed
to insure that any offer or sale, direct or indirect, in the United States or to any U.S.
person (as defined in Rule 902 under the Act) of any Securities or any substantially similar
security issued by the Company, within six months subsequent to the date on which the
distribution of the Securities has been completed (as notified to the Company by Goldman,
Sachs & Co.), is made under restrictions and other circumstances reasonably designed not to
affect the status of the offer and sale of the Securities in the United States and to U.S.
persons contemplated by this Agreement as transactions exempt from the registration
provisions of the Securities Act;

     (t) The Company maintains a system of internal control over financial reporting (as
such term is defined in Rule 13a-15(f) of the Exchange Act) that complies with the
requirements of the Exchange Act and has been designed by the Company’s principal executive
officer and principal financial officer, or under their supervision, to provide

5

 

reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. Except as disclosed in the Pricing Circular, the Company’s
internal control over financial reporting is effective and the Company is not aware of any
material weaknesses in its internal control over financial reporting;

     (u) Since the date of the latest audited financial statements included or incorporated
by reference in the Pricing Circular, there has been no change in the Company’s internal
control over financial reporting that has materially affected, or is reasonably likely to
materially affect, the Company’s internal control over financial reporting;

     (v) The Company maintains disclosure controls and procedures (as such term is defined
in Rule 13a-15(e) of the Exchange Act) that comply with the requirements of the Exchange
Act; such disclosure controls and procedures have been designed to ensure that material
information relating to the Company and its subsidiaries is made known to the Company’s
principal executive officer and principal financial officer by others within those entities;
and such disclosure controls and procedures are effective;

     (w) Ernst & Young LLP, which has audited certain consolidated financial statements of
the Company and its subsidiaries is an independent registered public accounting firm as
required by the Act and the rules and regulations of the Commission thereunder;

     (x) The Company and its subsidiaries possess all licenses, permits, certificates,
consents, orders, approvals and other authorizations from, and have made all declarations
and filings with, all federal, state, local and other governmental authorities, and all
courts and other tribunals, presently required or necessary to own or lease, as the case may
be, and to operate their respective properties and to carry on their respective businesses
as now or proposed to be conducted as set forth in the Prospectus (“Permits”), except where
the failure to obtain such Permits (by possession, declaration or filing) could not,
individually or in the aggregate, have a Material Adverse Effect;

     (y) Except as described in the Pricing Circular or as could not, individually or in the
aggregate, have a Material Adverse Effect, (A) the Company and each of its subsidiaries is
in compliance with and not subject to any known liability under applicable Environmental
Laws (as defined below), (B) the Company and each of its subsidiaries has made all filings
and provided all notices required under any applicable Environmental Law, and has, and is in
compliance with, all Permits required under any applicable Environmental Laws and each of
them is in full force and effect, (C) there is no civil, criminal or administrative action,
suit, demand, claim, hearing, notice of violation or, to the best knowledge of the Company,
investigation by any governmental authority, or judicial or administrative proceeding,
notice or demand letter or written request for information, pending or, to the best
knowledge of the Company, threatened against the Company or any of its subsidiaries under
any Environmental Law, (D) no lien, charge, encumbrance or restriction has been recorded
under any Environmental Law with respect to any assets, facility or property owned,
operated, leased or controlled by the Company or any of its subsidiaries, (E) none of the
Company or any of its subsidiaries has received written notice that it has been identified
as a potentially responsible party under the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended (“CERCLA”), or any comparable state law
and (F) no property or facility of the Company or any of its subsidiaries is (i) listed or,
to the best knowledge of the Company, proposed for listing on the National Priorities List
under CERCLA or (ii) listed in the Comprehensive Environmental Response, Compensation and
Liability Information System List

6

 

promulgated pursuant to CERCLA, or on any comparable list maintained by any state or
local governmental authority; for purposes of this Agreement, “Environmental Laws” means the
common law and all applicable federal, provincial, state and local laws or regulations,
codes, orders, decrees, judgments or injunctions issued, promulgated, approved or entered
thereunder, relating to pollution or protection of public or employee health or the
environment, including, without limitation, laws relating to (i) emissions, discharges,
releases or threatened releases of hazardous materials into the environment (including,
without limitation, ambient air, surface water, groundwater, land surface or subsurface
strata), (ii) the manufacture, processing, distribution, use, generation, treatment,
storage, disposal, transport or handling of hazardous materials, and (iii) underground and
aboveground storage tanks and related piping, and emissions, discharges, releases or
threatened releases therefrom;

     (z) There is no material strike, labor dispute, slowdown or work stoppage with the
employees of the Company or any of its subsidiaries which is pending or, to the best
knowledge of the Company, threatened; and

     (aa) The Company and each of its subsidiaries carries insurance in such amounts and
covering such risks as in its reasonable determination is adequate for the conduct of its
business and the value of its properties.

	2.	 	Subject to the terms and conditions herein set forth, (a) the Company agrees to issue and
sell to each of the Purchasers, and each of the Purchasers agrees, severally and not jointly,
to purchase from the Company, at a purchase price of 97.25% of the principal amount thereof,
the principal amount of Securities set forth opposite the name of such Purchaser in Schedule I
hereto, and (b) in the event and to the extent that the Purchasers shall exercise the election
to purchase Optional Securities as provided below, the Company agrees to issue and sell to
each of the Purchasers, and each of the Purchasers agrees, severally and not jointly, to
purchase from the Company, at the same purchase price set forth in clause (a) of this Section
2, that portion of the aggregate principal amount of the Optional Securities as to which such
election shall have been exercised (to be adjusted by you so as to eliminate fractions of
$1,000) determined by multiplying such aggregate principal amount of Optional Securities by a
fraction, the numerator of which is the maximum aggregate principal amount of Optional
Securities which such Purchaser is entitled to purchase as set forth opposite the name of such
Purchaser in Schedule I hereto and the denominator of which is the maximum aggregate principal
amount of Optional Securities which all of the Purchasers are entitled to purchase hereunder.
	 
	 	 	The Company hereby grants to the Purchasers the right to purchase at their election up to
$30,000,000 in aggregate principal amount of Optional Securities, at the purchase price set
forth in clause (a) of the first paragraph of this Section 2, for the sole purpose of covering
sales of securities in excess of the aggregate principal amount of Firm Securities. Any such
election to purchase Optional Securities may be exercised by written notice from you to the
Company, given within a period of 30 calendar days after the date of this Agreement, setting
forth the aggregate principal amount of Optional Securities to be purchased and the date on
which such Optional Securities are to be delivered, as determined by you but in no event earlier
than the First Time of Delivery (as defined in Section (4) hereof) or, unless you and the
Company otherwise agree in writing, earlier than two or later than ten business days after the
date of such notice.
	 
	3.	 	Upon the authorization by you of the release of the Securities, the several Purchasers
propose to offer the Securities for sale upon the terms and conditions set forth in this
Agreement and the Offering Circular and each Purchaser hereby represents and warrants to, and
agrees with the Company that:

7

 

     (a) It will offer and sell the Securities only to persons who it reasonably believes
are “qualified institutional buyers” (“QIBs”) within the meaning of Rule 144A under the Act
in transactions meeting the requirements of Rule 144A;

     (b) It is an “accredited investor” within the meaning of Rule 501 under the Act; and

     (c) It will not offer or sell the Securities by any form of general solicitation or
general advertising, including but not limited to the methods described in Rule 502(c) under
the Act.

4.

     (a) The Securities to be purchased by each Purchaser hereunder will be represented by
one or more definitive global Securities in book-entry form which will be deposited by or on
behalf of the Company with The Depository Trust Company (“DTC”) or its designated custodian.
The Company will deliver the Securities to Goldman, Sachs & Co., for the account of each
Purchaser, against payment by or on behalf of such Purchaser of the purchase price therefor
by wire transfer to the Company in Federal (same day) funds, by causing DTC to credit the
Securities to the account of Goldman, Sachs & Co. at DTC. The Company will cause the
certificates representing the Securities to be made available to Goldman, Sachs & Co. for
checking at least twenty-four hours prior to such Time of Delivery (as defined below) at the
office of McGuireWoods LLP, 100 North Tryon Street, Suite 2900, Charlotte, North Carolina
28202 (the “Closing Location”). The time and date of such delivery and payment shall be,
with respect to the Firm Securities, 9:30 a.m., New York City time, on August 8, 2007, or
such other time and date as Goldman, Sachs & Co. and the Company may agree upon in writing,
and, with respect to the Optional Securities, 9:30 a.m., New York City time, on the date
specified by Goldman, Sachs & Co. in the written notice given by the Purchasers of the
Purchasers’ election to purchase the Optional Securities, or at such other time and date as
Goldman, Sachs & Co. and the Company may agree upon in writing. Such time and date for
delivery of the Firm Securities is herein called the “First Time of Delivery”, any time and
date for delivery of Optional Securities, if not the First Time of Delivery, is herein
called an “Optional Time of Delivery”, and each such time and date for delivery of
Securities is herein called a “Time of Delivery”

     (b) The documents to be delivered at each Time of Delivery by or on behalf of the
parties hereto pursuant to Section 8 hereof, including the cross-receipt for the Securities
and any additional documents requested by the Purchasers pursuant to Section 8(l) hereof,
will be delivered at such time and date at the Closing Location, and the Securities will be
delivered at DTC or its designated custodian), all at each Time of Delivery. A meeting will
be held at the Closing Location at 5:00 p.m., New York City time, on the New York Business
Day next preceding such Time of Delivery, at which meeting the final drafts of the documents
to be delivered pursuant to the preceding sentence will be available for review by the
parties hereto. For the purposes of this Section 4, “New York Business Day” shall mean each
Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banking
institutions in New York are generally authorized or obligated by law or executive order to
close.

5. The Company agrees with each of the Purchasers:

     (a) To prepare the Offering Circular in a form approved by you; to make no amendment or
any supplement to the Offering Circular which shall be disapproved by you promptly after
reasonable notice thereof; and to furnish you with copies thereof;

8

 

     (b) Promptly from time to time to take such action as you may reasonably request to
qualify the Securities and the shares of Stock issuable upon conversion of the Securities
for offering and sale under the securities laws of such jurisdictions as you may request and
to comply with such laws so as to permit the continuance of sales and dealings therein in
such jurisdictions for as long as may be necessary to complete the distribution of the
Securities, provided that in connection therewith the Company shall not be required to
qualify as a foreign corporation or to file a general consent to service of process in any
jurisdiction;

     (c) To furnish the Purchasers with written and electronic copies thereof in such
quantities as you may from time to time reasonably request, and if, at any time prior to the
expiration of nine months after the date of the Offering Circular, any event shall have
occurred as a result of which the Offering Circular as then amended or supplemented would
(i) include an untrue statement of a material fact or (ii) omit to state any material fact
necessary in order to make the statements therein, in the light of the circumstances under
which they were made when such Offering Circular is delivered, not misleading, or, if for
any other reason it shall be necessary or desirable during such same period to amend or
supplement the Offering Circular, to notify you and upon your request to prepare and furnish
without charge to each Purchaser and to any dealer in securities as many written and
electronic copies as you may from time to time reasonably request of an amended Offering
Circular or a supplement to the Offering Circular which will correct such statement or
omission or effect such compliance;

     (d) During the period beginning from the date hereof and continuing until the date 90
days after the First Time of Delivery, not to offer, sell, contract to sell or otherwise
dispose of, except as provided hereunder any securities of the Company that are
substantially similar to the Securities or the Stock, including but not limited to any
securities that are convertible into or exchangeable for, or that represent the right to
receive, Stock or any such substantially similar securities (other than pursuant to employee
stock option plans, stock incentive plans or stock purchase plans existing on, or upon the
conversion or exchange of convertible or exchangeable securities outstanding as of, the date
of this Agreement), without Goldman, Sachs & Co.’s prior written consent;

     (e) Not to be or become, at any time prior to the expiration of two years after the
last Time of Delivery, an open-end investment company, unit investment trust, closed-end
investment company or face-amount certificate company that is or is required to be
registered under Section 8 of the Investment Company Act;

     (f) At any time during the two-year period following the last Time of Delivery when the
Company is not subject to Section 13 or 15(d) of the Exchange Act, for the benefit of
holders from time to time of Securities, to furnish at its expense, upon request, to holders
of Securities and prospective purchasers of securities information (the “Additional Issuer
Information”) satisfying the requirements of subsection (d)(4)(i) of Rule 144A under the
Act;

     (g) If requested by you, to use its commercially reasonable efforts to cause such
Designated Securities to be eligible for the PORTAL trading system of the National
Association of Securities Dealers, Inc.;

     (h) Except for such documents that are publicly available on EDGAR, to furnish to the
holders of the Securities as soon as practicable after the end of each fiscal year an annual
report (including a consolidated balance sheet and consolidated statements of income,
stockholders’ equity and cash flows of the Company and its consolidated subsidiaries
certified by independent public accountants) and, as soon as practicable after the end of
each of the

9

 

first three quarters of each fiscal year (beginning with the fiscal quarter ending
after the date of the Offering Circular), to make available to its stockholders consolidated
summary financial information of the Company and its subsidiaries for such quarter in
reasonable detail;

     (i) During the period of two years after the last Time of Delivery, the Company will
not, and will not permit any of its “affiliates” (as defined in Rule 144 under the
Securities Act) to, resell any of the Securities which constitute “restricted securities”
under Rule 144 that have been reacquired by any of them;

     (j) To use the net proceeds received by it from the sale of the Securities pursuant to
this Agreement in the manner specified in the Pricing Circular under the caption “Use of
Proceeds”;

     (k) To reserve and keep available at all times, free of preemptive rights, shares of
Stock for the purpose of enabling the Company to satisfy any obligations to issue shares of
its Stock upon conversion of the Securities; and

     (l) To use its commercially reasonable efforts to list, subject to notice of issuance,
the shares of Stock issuable upon conversion of the Securities on the New York Stock
Exchange (the “Exchange”).

6.

	 	(a)	 	(i) The Company represents and agrees that, without the prior consent of Goldman,
Sachs & Co., it has not made and will not make any offer relating to the Securities that,
if the offering of the Securities contemplated by this Agreement were conducted as a public
offering pursuant to a registration statement filed under the Act with the Commission,
would constitute an “issuer free writing prospectus,” as defined in Rule 433 under the Act
(any such offer is hereinafter referred to as a “Company Supplemental Disclosure
Document”);
	 
	 	 	 	(ii) each Purchaser represents and agrees that, without the prior consent of the Company
and Goldman, Sachs & Co., other than one or more term sheets relating to the Securities
containing customary information and conveyed to purchasers of the securities, it has not
made and will not make any offer relating to the Securities that, if the offering of the
Securities contemplated by this Agreement were conducted as a public offering pursuant to
a registration statement filed under the Act with the Commission, would constitute a “free
writing prospectus,” as defined in Rule 405 under the Act (any such offer (other than any
such term sheets), is hereinafter referred to as a “Purchaser Supplemental Disclosure
Document”); and
	 
	 	 	 	(iii) any Company Supplemental Disclosure Document or Purchaser Supplemental Disclosure
Document the use of which has been consented to by the Company and Goldman, Sachs & Co. is
listed on Schedule II(b) hereto.
	 
	 	7.	 	The Company covenants and agrees with the several Purchasers that the Company will pay
or cause to be paid the following: (i) the fees, disbursements and expenses of the
Company’s counsel and accountants in connection with the issue of the Securities and the
shares of Stock issuable upon conversion of the Securities and all other expenses in
connection with the preparation, printing, reproduction and filing of the Preliminary
Offering Circular and the Offering Circular and any amendments and supplements thereto and
the mailing and delivering of copies thereof to the Purchasers and dealers; (ii) the cost
of printing or producing any Agreement among Purchasers, this Agreement, the Indenture, the

10

 

	 	 	 	Registration Rights Agreement, the Blue Sky Memorandum, closing documents (including any
compilations thereof) and any other documents in connection with the offering, purchase,
sale and delivery of the Securities; (iii) all expenses in connection with the
qualification of the Securities and the shares of Stock issuable upon conversion of the
Securities for offering and sale under state securities laws as provided in Section 5(b)
hereof, including the fees and disbursements of counsel for the Purchasers in connection
with such qualification and in connection with the Blue Sky and legal investment surveys;
(iv) any fees charged by securities rating services for rating the Securities; (v) the
cost of preparing the Securities; (vi) the fees and expenses of the Trustee and any agent
of the Trustee and the fees and disbursements of counsel for the Trustee in connection
with the Indenture and the Securities; (vii) any cost incurred in connection with the
designation of the Securities for trading in PORTAL and the listing of the shares of Stock
issuable upon conversion of the Securities; and (viii) all other costs and expenses
incident to the performance of its obligations hereunder which are not otherwise
specifically provided for in this Section. It is understood, however, that, except as
provided in this Section, and Sections 9 and 12 hereof, the Purchasers will pay all of
their own costs and expenses, including the fees of their counsel, transfer taxes on
resale of any of the Securities by them, and any advertising expenses connected with any
offers they may make.

	8.	 	The obligations of the Purchasers hereunder shall be subject, in their discretion, to the
condition that all representations and warranties and other statements of the Company herein
are, at and as of each Time of Delivery, true and correct, the condition that the Company
shall have performed all of its obligations hereunder theretofore to be performed, and the
following additional conditions:

     (a) Latham & Watkins LLP, counsel for the Purchasers, shall have furnished to you (i)
their written opinions, dated such Time of Delivery, substantially in the form of the drafts
attached hereto as Annex IV and (ii) their written letter, dated such Time of Delivery,
substantially in the form of the draft attached hereto as Annex IV and such counsel shall
have received such papers and information as they may reasonably request to enable them to
pass upon such matters;

     (b) McGuireWoods LLP, counsel for the Company, shall have furnished to you their
written opinion, dated such Time of Delivery, substantially in the form of the draft
attached hereto as Annex II;

     (c) Blank Rome LLP, special maritime counsel for the Company, shall have furnished to
you their written opinion, dated such Time of Delivery, substantially in the form of the
draft attached hereto as Annex III;

     (d) On the date of the Offering Circular prior to the execution of this Agreement and
also at each Time of Delivery, Ernst & Young LLP shall have furnished to you a letter or
letters, dated the respective dates of delivery thereof, in form and substance satisfactory
to you, to the effect set forth in Annex I hereto;

     (e) (i) Neither the Company nor any of its subsidiaries shall have sustained since the
date of the latest audited consolidated financial statements included or incorporated by
reference in the Pricing Circular any loss or interference with its business from fire,
explosion, flood or other calamity, whether or not covered by insurance, or from any labor
dispute or court or governmental action, order or decree, otherwise than as set forth or
contemplated in the Pricing Circular, and (ii) since the respective dates as of which
information is given in the Pricing Circular there shall not have been any change in the
capital stock (excluding grants of

11

 

restricted shares to employees or directors of the Company, the issuance of shares
pursuant to the Company’s employee stock purchase plan and the exercise of outstanding stock
options) long-term debt of the Company or any of its subsidiaries or any change, or any
development involving a prospective change, in or affecting the general affairs, management,
financial position, stockholders’ equity or results of operations of the Company and its
subsidiaries, otherwise than as set forth or contemplated in the Pricing Circular, the
effect of which, in any such case described in clause (i) or (ii), is in your judgment so
material and adverse as to make it impracticable or inadvisable to proceed with the offering
or the delivery of the Securities being issued at such Time of Delivery on the terms and in
the manner contemplated in this Agreement and in the Offering Circular;

     (f) On or after the Applicable Time (i) no downgrading shall have occurred in the
rating accorded the Company’s or any of its subsidiaries’ debt securities by any “nationally
recognized statistical rating organization”, as that term is defined by the Commission for
purposes of Rule 436(g)(2) under the Act, and (ii) no such organization shall have publicly
announced that it has under surveillance or review, with possible negative implications, its
rating of any of the Company’s or any of its subsidiaries’ debt securities or the Company’s
or any of its subsidiaries’ financial strength or claims paying ability;

     (g) On or after the Applicable Time there shall not have occurred any of the following:
(i) a suspension or material limitation in trading in securities generally on the New York
Stock Exchange; (ii) a suspension or material limitation in trading in the Company’s
securities on the New York Stock Exchange; (iii) a general moratorium on commercial banking
activities declared by either Federal or New York State authorities or a material disruption
in commercial banking or securities settlement or clearance services in the United States;
(iv) the outbreak or escalation of hostilities involving the United States or the
declaration by the United States of a national emergency or war or (v) the occurrence of any
other calamity or crisis or any change in financial, political or economic conditions in the
United States or elsewhere, if the effect of any such event specified in clause (iv) or (v)
in your judgment makes it impracticable or inadvisable to proceed with the offering or the
delivery of the Securities being issued at such Time of Delivery on the terms and in the
manner contemplated in the Offering Circular;

     (h) The Securities shall have been designated for trading on PORTAL;

     (i) The shares of Stock issuable upon conversion of the Securities shall have been duly
listed, subject to notice of issuance, on the Exchange;

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

     (k) The Company shall have obtained and delivered to the Purchasers executed copies of
an agreement from each of the persons listed in Schedule IV, substantially in the form and
substance of Annex V hereof; and

     (l) The Company shall have furnished or caused to be furnished to you at Time of
Delivery certificates of officers of the Company satisfactory to you as to the accuracy of
the representations and warranties of the Company herein at and as of such Time of Delivery,
as to the performance by the Company of all of its obligations hereunder to be performed at
or prior to such Time of Delivery, as to the matters set forth in subsection (f) of this
Section and as to such other matters as you may reasonably request.

12

 

	9. 	 (a)	 	The Company will indemnify and hold harmless each Purchaser against any losses, claims,
damages or liabilities, joint or several, to which such Purchaser may become subject, under
the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon an untrue statement or alleged untrue
statement of a material fact contained in any Preliminary Offering Circular, the Pricing
Circular, the Offering Circular, or any amendment or supplement thereto, any Company
Supplemental Disclosure Document, or arise out of or are based upon the omission or alleged
omission to state therein a material fact necessary to make the statements therein not
misleading, and will reimburse each Purchaser for any legal or other expenses reasonably
incurred by such Purchaser in connection with investigating or defending any such action or
claim as such expenses are incurred; provided, however, that the Company shall not be liable
in any such case to the extent that any such loss, claim, damage or liability arises out of or
is based upon an untrue statement or alleged untrue statement or omission or alleged omission
made in any Preliminary Offering Circular, the Pricing Circular, the Offering Circular or any
such amendment or supplement, or any Company Supplemental Disclosure Document, in reliance
upon and in conformity with written information furnished to the Company by any Purchaser
through Goldman, Sachs & Co. expressly for use therein.

     (b) Each Purchaser will indemnify and hold harmless the Company against any losses,
claims, damages or liabilities to which the Company may become subject, under the Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a
material fact contained in any Preliminary Offering Circular, the Pricing Circular, the
Offering Circular, or any amendment or supplement thereto, or any Company Supplemental
Disclosure Document, or arise out of or are based upon the omission or alleged omission to
state therein a material fact or necessary to make the statements therein not misleading, in
each case to the extent, but only to the extent, that such untrue statement or alleged
untrue statement or omission or alleged omission was made in any Preliminary Offering
Circular, the Pricing Circular, the Offering Circular or any such amendment or supplement,
or any Company Supplemental Disclosure Document in reliance upon and in conformity with
written information furnished to the Company by such Purchaser through Goldman, Sachs & Co.
expressly for use therein; and will reimburse the Company for any legal or other expenses
reasonably incurred by the Company in connection with investigating or defending any such
action or claim as such expenses are incurred.

     (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of
notice of the commencement of any action, such indemnified party shall, if a claim in
respect thereof is to be made against the indemnifying party under such subsection, notify
the indemnifying party in writing of the commencement thereof; but the omission so to notify
the indemnifying party shall not relieve it from any liability which it may have to any
indemnified party otherwise than under such subsection. In case any such action shall be
brought against any indemnified party and it shall notify the indemnifying party of the
commencement thereof, the indemnifying party shall be entitled to participate therein and,
to the extent that it shall wish, jointly with any other indemnifying party similarly
notified, to assume the defense thereof, with counsel reasonably satisfactory to such
indemnified party (who shall not, except with the consent of the indemnified party, be
counsel to the indemnifying party), and, after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, the indemnifying party
shall not be liable to such indemnified party under such subsection for any legal expenses
of other counsel or any other expenses, in each case

13

 

subsequently incurred by such indemnified party, in connection with the defense thereof
other than reasonable costs of investigation. No indemnifying party shall, without the
written consent of the indemnified party, effect the settlement or compromise of, or consent
to the entry of any judgment with respect to, any pending or threatened action or claim in
respect of which indemnification or contribution may be sought hereunder (whether or not the
indemnified party is an actual or potential party to such action or claim) unless such
settlement, compromise or judgment (i) includes an unconditional release of the indemnified
party from all liability arising out of such action or claim and (ii) does not include a
statement as to, or an admission of, fault, culpability or a failure to act, by or on behalf
of any indemnified party.

     (d) If the indemnification provided for in this Section 9 is unavailable to or
insufficient to hold harmless an indemnified party under subsection (a) or (b) above in
respect of any losses, claims, damages or liabilities (or actions in respect thereof)
referred to therein, then each indemnifying party shall contribute to the amount paid or
payable by such indemnified party as a result of such losses, claims, damages or liabilities
(or actions in respect thereof) in such proportion as is appropriate to reflect the relative
benefits received by the Company on the one hand and the Purchasers on the other from the
offering of the Securities. If, however, the allocation provided by the immediately
preceding sentence is not permitted by applicable law or if the indemnified party failed to
give the notice required under subsection (c) above, then each indemnifying party shall
contribute to such amount paid or payable by such indemnified party in such proportion as is
appropriate to reflect not only such relative benefits but also the relative fault of the
Company on the one hand and the Purchasers on the other in connection with the statements or
omissions which resulted in such losses, claims, damages or liabilities (or actions in
respect thereof), as well as any other relevant equitable considerations. The relative
benefits received by the Company on the one hand and the Purchasers on the other shall be
deemed to be in the same proportion as the total net proceeds from the offering (before
deducting expenses) received by the Company bear to the total underwriting discounts and
commissions received by the Purchasers, in each case as set forth in the Offering Circular.
The relative fault shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission or alleged omission to
state a material fact relates to information supplied by the Company on the one hand or the
Purchasers on the other and the parties’ relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission. The Company and the
Purchasers agree that it would not be just and equitable if contribution pursuant to this
subsection (d) were determined by pro rata allocation (even if the Purchasers were treated
as one entity for such purpose) or by any other method of allocation which does not take
account of the equitable considerations referred to above in this subsection (d). The
amount paid or payable by an indemnified party as a result of the losses, claims, damages or
liabilities (or actions in respect thereof) referred to above in this subsection (d) shall
be deemed to include any legal or other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this subsection (d), no Purchaser shall be required to
contribute any amount in excess of the amount by which the total price at which the
Securities purchased by it and distributed to investors were offered to investors exceeds
the amount of any damages which such Purchaser has otherwise been required to pay by reason
of such untrue or alleged untrue statement or omission or alleged omission. The Purchasers’
obligations in this subsection (d) to contribute are several in proportion to their
respective underwriting obligations and not joint.

14

 

     (e) The obligations of the Company under this Section 9 shall be in addition to any
liability which the Company may otherwise have and shall extend, upon the same terms and
conditions, to any affiliate of each Purchaser and each person, if any, who controls any
Purchaser within the meaning of the Act; and the obligations of the Purchasers under this
Section 9 shall be in addition to any liability which the respective Purchasers may
otherwise have and shall extend, upon the same terms and conditions, to each officer and
director of the Company and to each person, if any, who controls the Company within the
meaning of the Act.

	10. 	 (a)	 	If any Purchaser shall default in its obligation to purchase the Securities which it has
agreed to purchase hereunder, you may in your discretion arrange for you or another party or
other parties to purchase such Securities on the terms contained herein at a Time of Delivery.
If within thirty-six hours after such default by any Purchaser you do not arrange for the
purchase of such Securities, then the Company shall be entitled to a further period of
thirty-six hours within which to procure another party or other parties satisfactory to you to
purchase such Securities on such terms. In the event that, within the respective prescribed
periods, you notify the Company that you have so arranged for the purchase of such Securities,
or the Company notifies you that it has so arranged for the purchase of such Securities, you
or the Company shall have the right to postpone such Time of Delivery for a period of not more
than seven days, in order to effect whatever changes may thereby be made necessary in the
Offering Circular, or in any other documents or arrangements, and the Company agrees to
prepare promptly any amendments to the Offering Circular which in your opinion may thereby be
made necessary. The term “Purchaser” as used in this Agreement shall include any person
substituted under this Section with like effect as if such person had originally been a party
to this Agreement with respect to such Securities.

     (b) If, after giving effect to any arrangements for the purchase of the Securities to
be purchased at such Time of Delivery of a defaulting Purchaser or Purchasers by you and the
Company as provided in subsection (a) above, the aggregate principal amount of such
Securities which remains unpurchased does not exceed one-eleventh of the aggregate principal
amount of all the Securities, then the Company shall have the right to require each
non-defaulting Purchaser to purchase the principal amount of Securities which such Purchaser
agreed to purchase hereunder at such Time of Delivery and, in addition, to require each
non-defaulting Purchaser to purchase its pro rata share (based on the principal amount of
Securities which such Purchaser agreed to purchase hereunder) of the Securities of such
defaulting Purchaser or Purchasers for which such arrangements have not been made; but
nothing herein shall relieve a defaulting Purchaser from liability for its default.

     (c) If, after giving effect to any arrangements for the purchase of the Securities of a
defaulting Purchaser or Purchasers by you and the Company as provided in subsection (a)
above, the aggregate principal amount of Securities which remains unpurchased exceeds
one-eleventh of the aggregate principal amount of all the Securities to be purchased at such
Time of Delivery, or if the Company shall not exercise the right described in subsection (b)
above to require non-defaulting Purchasers to purchase Securities of a defaulting Purchaser
or Purchasers, then this Agreement (or, with respect to an Optional Time of Delivery, the
obligation of the Purchasers to purchase and of the Company to sell Optional Securities)
shall thereupon terminate, without liability on the part of any non-defaulting Purchaser or
the Company, except for the expenses to be borne by the Company and the Purchasers as
provided in Section 6 hereof and the indemnity and contribution agreements in Section 9
hereof; but nothing herein shall relieve a defaulting Purchaser from liability for its
default.

15

 

	11.	 	The respective indemnities, agreements, representations, warranties and other statements of
the Company and the several Purchasers, as set forth in this Agreement or made by or on behalf
of them, respectively, pursuant to this Agreement, shall remain in full force and effect,
regardless of any investigation (or any statement as to the results thereof) made by or on
behalf of any Purchaser or any controlling person of any Purchaser, or the Company, or any
officer or director or controlling person of the Company, and shall survive delivery of and
payment for the Securities.
	 
	12.	 	If this Agreement shall be terminated pursuant to Section 10 hereof, the Company shall not
then be under any liability to any Purchaser except as provided in Sections 7 and 9 hereof;
but, if for any other reason, any Securities are not delivered by or on behalf of the Company
as provided herein, the Company will reimburse the Purchasers through you for all expenses
approved in writing by you, including fees and disbursements of counsel, reasonably incurred
by the Purchasers in making preparations for the purchase, sale and delivery of the
Securities, but the Company shall then be under no further liability to any Purchaser except
as provided in Sections 7 and 9 hereof.
	 
	13.	 	In all dealings hereunder, you shall act on behalf of each of the Purchasers, and the parties
hereto shall be entitled to act and rely upon any statement, request, notice or agreement on
behalf of any Purchaser made or given by you jointly or by Goldman, Sachs & Co. on behalf of
you as the representatives.
	 
	 	 	All statements, requests, notices and agreements hereunder shall be in writing, and if to the
Purchasers shall be delivered or sent by mail, telex or facsimile transmission to you as the
representatives in care of Goldman, Sachs & Co., One New York Plaza, 42nd Floor, New
York, New York 10004, Attention: Registration Department; and if to the Company shall be
delivered or sent by mail, telex or facsimile transmission to the address of the Company set
forth in the Offering Circular, Attention: Secretary; provided, however, that any notice to a
Purchaser pursuant to Section 9(c) hereof shall be delivered or sent by mail, telex or facsimile
transmission to such Purchaser at its address set forth in its Purchasers’ Questionnaire, or
telex constituting such Questionnaire, which address will be supplied to the Company by you upon
request. Any such statements, requests, notices or agreements shall take effect upon receipt
thereof.
	 
	14.	 	This Agreement shall be binding upon, and inure solely to the benefit of, the Purchasers, the
Company and, to the extent provided in Sections 9 and 11 hereof, the officers and directors of
the Company and each person who controls the Company or any Purchaser, and their respective
heirs, executors, administrators, successors and assigns, and no other person shall acquire or
have any right under or by virtue of this Agreement. No purchaser of any of the Securities
from any Purchaser shall be deemed a successor or assign by reason merely of such purchase.
	 
	15.	 	Time shall be of the essence of this Agreement.
	 
	16.	 	The Company acknowledges and agrees that (i) the purchase and sale of the Securities pursuant
to this Agreement is an arm’s-length commercial transaction between the Company, on the one
hand, and the several Purchasers, on the other, (ii) in connection therewith and with the
process leading to such transaction each Purchaser is acting solely as a principal and not the
agent or fiduciary of the Company, (iii) no Purchaser has assumed an advisory or fiduciary
responsibility in favor of the Company with respect to the offering contemplated hereby or the
process leading thereto (irrespective of whether such Purchaser has advised or is currently
advising the Company on other matters) or any other obligation to the Company except the
obligations expressly set forth in this Agreement and (iv) the Company has consulted its own
legal and financial advisors to the extent it deemed appropriate. The Company agrees that it
will not claim that the Purchaser, or

16

 

	 	 	any of them, has rendered advisory services of any nature or respect, or owes a fiduciary or
similar duty to the Company, in connection with such transaction or the process leading thereto.
	 
	17.	 	This Agreement supersedes all prior agreements and understandings (whether written or oral)
between the Company and the Purchasers, or any of them, with respect to the subject matter
hereof.
	 
	18.	 	This Agreement shall be governed by and construed in accordance with the laws of the State of
New York.
	 
	19.	 	The Company and each of the Purchasers hereby irrevocably waives, to the fullest extent
permitted by applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Agreement or the transactions contemplated hereby.
	 
	20.	 	This Agreement may be executed by any one or more of the parties hereto in any number of
counterparts, each of which shall be deemed to be an original, but all such respective
counterparts shall together constitute one and the same instrument.
	 
	21.	 	Notwithstanding anything herein to the contrary, the Company (and the Company’s employees,
representatives, and other agents) are authorized to disclose to any and all persons, the tax
treatment and tax structure of the potential transaction and all materials of any kind
(including tax opinions and other tax analyses) provided to the Company relating to that
treatment and structure, without the Purchasers’ imposing any limitation of any kind. However,
any information relating to the tax treatment and tax structure shall remain confidential (and
the foregoing sentence shall not apply) to the extent necessary to enable any person to comply
with securities laws. For this purpose, “tax treatment” means US federal and state income tax
treatment, and “tax structure” is limited to any facts that may be relevant to that treatment.

17

 

If the foregoing is in accordance with your understanding, please sign and return to us a
counterpart hereof, and upon the acceptance hereof by you, on behalf of each of the Purchasers,
this letter and such acceptance hereof shall constitute a binding agreement between each of the
Purchasers and the Company. It is understood that your acceptance of this letter on behalf of each
of the Purchasers is pursuant to the authority set forth in a form of Agreement among Purchasers,
the form of which shall be submitted to the Company for examination upon request, but without
warranty on your part as to the authority of the signers thereof.

	 	 	 	 	 
	 	Very truly yours,

Horizon Lines, Inc.

 	 
	 	By:  	/s/ Robert S. Zuckerman
 	 
	 	 	Name:  	Robert S. Zuckerman 	 
	 	 	Title:  	Secretary 	 
	 

	 	 	 	 	 
	 	Accepted as of the date hereof:
 	 
	 
	 	Goldman, Sachs & Co.
 	 
	 	By:  	/s/ Goldman, Sachs & Co.
 	 
	 	 	(Goldman, Sachs & Co.) 	 
	 	 	
On behalf of each of the Purchasers 	 
	 

18

 

SCHEDULE I

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Aggregate	 
	 	 	 	 	 	 	Principal	 
	 	 	 	 	 	 	Amount of	 
	 	 	 	 	 	 	Optional	 
	 	 	 	 	 	 	Securities to	 
	 	 	Principal	 	 	be Purchased	 
	 	 	Amount of	 	 	if Maximum	 
	 	 	Securities to be	 	 	Option	 
	 	 	Purchased	 	 	Exercised	 
	Goldman, Sachs & Co.
	 	$	180,000,000	 	 	$	18,000,000	 
	Banc of America Securities LLC
	 	 	60,000,000	 	 	 	6,000,000	 
	Wachovia Capital Markets, LLC
	 	 	60,000,000	 	 	 	6,000,000	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Total
	 	$	300,000,000	 	 	$	30,000,000	 
	 
	 	 	 	 	 	 

19

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