Document:

EX-4.1

 

Exhibit 4.1

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN
THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER AGREES (1) THAT IT WILL NOT WITHIN
THE LATER OF (X) TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY AND (Y) THREE MONTHS AFTER
IT CEASES TO BE AN AFFILIATE (WITHIN THE MEANING OF RULE 144 ADOPTED UNDER THE SECURITIES ACT) OF
THE ISSUER, RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY OR THE COMMON STOCK ISSUABLE
UPON CONVERSION OF SUCH SECURITY, EXCEPT (A) TO THE ISSUER; (B) UNDER A REGISTRATION STATEMENT THAT
HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT; (C) TO A PERSON THE SELLER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A ADOPTED UNDER THE SECURITIES
ACT) THAT IS PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER QUALIFIED INSTITUTIONAL
BUYER AND TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, ALL IN
COMPLIANCE WITH RULE 144A (IF AVAILABLE); OR (D) UNDER ANY OTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT; AND (2) THAT IT WILL, PRIOR TO ANY TRANSFER OF
THIS SECURITY WITHIN THE LATER OF (X) TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY AND
(Y) THREE MONTHS AFTER IT CEASES TO BE AN AFFILIATE (WITHIN THE MEANING OF RULE 144 ADOPTED UNDER
THE SECURITIES ACT) OF THE ISSUER, FURNISH TO THE TRUSTEE AND THE ISSUER SUCH CERTIFICATIONS, LEGAL
OPINIONS OR OTHER INFORMATION AS MAY BE REQUIRED PURSUANT TO THE INDENTURE TO CONFIRM THAT SUCH
TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND
IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED
IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART
MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF,
EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (“DTC”), A NEW YORK CORPORATION, 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 IN AS
MUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

 

3.00% Convertible Senior Subordinated Notes due 2011

					
	 	 	 	 	 
	No. 1
	 	CUSIP NO. 981417AA6 U.S.
	 	$110,000,000

     World Acceptance Corporation, a corporation duly organized and validly existing under the laws
of the State of South Carolina (herein called the “Company”), which term includes any successor
corporation under the Indenture referred to on the reverse hereof), for value received hereby
promises to pay to Cede & Co., or its registered assigns, the principal sum of One Hundred and Ten
Million United States Dollars ($110,000,000) (which amount may from time to time be decreased by
adjustments made on the records of the Trustee, as custodian for the Depositary, in accordance with
the rules and procedures of the Depositary) on October 1, 2011. Payment of the principal of this
Security shall be made by check mailed to the address of the Holder of this Security specified in
the register of Securities, or, at the option of the Company, by wire transfer in immediately
available funds, in such lawful money of the United States of America as at the time of payment
shall be legal tender for the payment of public and private debts.

     The issue date of this Security is October 10, 2006.

     Reference is made to the further provisions of this Security set forth on the reverse hereof,
including, without limitation, provisions giving the Holder the right to convert this Security and
to require the Company to purchase this Security upon certain events, in each case, on the terms
and subject to the limitations referred to on the reverse hereof and as more fully specified in the
Indenture. Such further provisions shall for all purposes have the same effect as though fully set
forth at this place. Capitalized terms used but not defined herein shall have such meanings as are
ascribed to such terms in the Indenture.

     This Security shall be deemed to be a contract made under the laws of the State of New York,
and for all purposes shall be construed in accordance with and governed by the laws of said State.

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

 

 

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

	 	 	 	 	 	 	 
	 	 	WORLD ACCEPTANCE CORPORATION
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Authorized Signatory	 	 

 

 

WORLD ACCEPTANCE CORPORATION

3.00% Convertible Senior Subordinated Notes due 2011

     This Security is one of a duly authorized issue of Securities of the Company, designated as
its 3.00% Convertible Senior Subordinated Notes due 2011 (the “Securities”), all issued or to be
issued under and pursuant to an Indenture dated as of October 10, 2006 (the “Indenture”), between
the Company and U.S. Bank National Association (the “Trustee”), to which Indenture and all
indentures supplemental thereto reference is hereby made for a description of the rights,
limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company
and the Holders of the Securities.

     Interest. The Securities will bear interest at a rate of 3.00% per year until
Maturity. Interest on the Securities will accrue from October 10, 2006, or from the most recent
date on which interest has been paid. Interest will be payable semiannually in arrears on April 1
and October 1, beginning April 1, 2007, and at Maturity.

     Interest will be paid to the person in whose name a Security is registered at the close of
business on the March 15 (whether or not a Business Day) or September 15 (whether or not a Business
Day), as the case may be, immediately preceding the relevant Interest Payment Date. Interest on the
Securities will be computed on the basis of a 360-day year composed of twelve 30-day months.

     Ranking. The Securities rank equally in right of payment with all the Company’s
existing and future unsecured Senior Subordinated Indebtedness and are senior in right of payment
to all of the Company’s existing and future Subordinated Indebtedness, if any, as set forth in the
Indenture. The Securities will rank junior to all existing and future Senior Indebtedness.

     Redemption at the Option of the Company. The Company may not redeem any of the
Securities at its option prior to maturity.

     Purchase by the Company at the Option of the Holder Upon a Fundamental Change.
Subject to the terms and conditions of the Indenture, the Company shall become obligated, at the
option of the Holder, to purchase the Securities if a Fundamental Change occurs at any time prior
to Stated Maturity at 100% of the Principal Amount plus accrued and unpaid interest, including
Additional Interest, if any, to, but excluding, the Fundamental Change Purchase Date, which amount
will be paid in cash.

     Withdrawal of Fundamental Change Purchase Notice. Holders have the right to withdraw,
in whole or in part, any Fundamental Change Purchase Notice, as the case may be, by delivering to
the Paying Agent a written notice of withdrawal in accordance with the provisions of the Indenture.

     Payment of Fundamental Change Purchase Price. If cash sufficient to pay the
Fundamental Change Purchase Price of all Securities or portions thereof to be purchased on a
Fundamental Change Purchase Date is deposited with the Paying Agent on the

 

 

Fundamental Change
Purchase Date, such Securities will cease to be outstanding and interest will cease to accrue on
such Securities (or portions thereof) immediately after such Fundamental Change Purchase Date, and
the Holder thereof shall have no other rights as such (other than the right to receive the
Fundamental Change Purchase Price upon surrender of such Security).

     Conversion. Subject to and in compliance with the provisions of the Indenture
(including without limitation the conditions of conversion of this Security set forth in Article 6
thereof), the Holder hereof has the right, at its option, to convert the Principal Amount hereof or
any portion of such principal which is $1,000 or a multiple thereof, into, subject to Section 6.01
of the Indenture, cash and shares of Common Stock, if any, at the Conversion Rate. The Conversion
Rate is initially 16.0229 shares of Common Stock per $1,000 Principal Amount of Securities
(equivalent to a conversion price of $62.41), subject to adjustment in certain events described in
the Indenture. Upon conversion, the Company will pay cash and shares of Common Stock, if any,
based on a Settlement Amount calculated on a proportionate basis for each day of the applicable
Observation Period, as set forth in the Indenture. No fractional shares will be issued upon any
conversion, but an adjustment and payment in cash will be made, as provided in the Indenture, in
respect of any fraction of a share which would otherwise be issuable upon the surrender of any
Securities for conversion. Securities in respect of which a Holder is exercising its right to
require purchase on a Fundamental Change Purchase Date may be converted only if such Holder
withdraws its election to exercise such right in accordance with the terms of the Indenture.

     In the event of a deposit or withdrawal of an interest in this Security, including an
exchange, transfer, purchase or conversion of this Security in part only, the Trustee, as custodian
of the Depositary, shall make an adjustment on its records to reflect such deposit or withdrawal in
accordance with the rules and procedures of the Depositary.

     Subject to certain limitations in the Indenture, at any time when the Company is not subject
to Section 13 or 15(d) of the United States Securities Exchange Act of 1934, as amended, upon the
request of a Holder of a Restricted Security, the Company will promptly furnish or cause to be
furnished Rule 144A Information (as defined below) to such Holder of Restricted Securities, or to a
prospective purchaser of any such security designated by any such Holder, to the extent required to
permit compliance by any such Holder with Rule 144A under the Securities Act. “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).

     If an Event of Default shall occur and be continuing, the Principal Amount plus interest,
including Additional Interest, if any, through such date on all the Securities may be declared due
and payable in the manner and with the effect provided in the Indenture.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities under the Indenture at any time by the Company and the Trustee with the consent of the
Holders of not less than a majority in

2

 

aggregate Principal Amount of the Outstanding Securities.
The Indenture also contains provisions permitting the Holders of specified percentages in aggregate
Principal Amount of the Outstanding Securities, on behalf of the Holders of all the Securities, to
waive compliance by the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the Holder of any
provision of or applicable to this Security shall be conclusive and binding upon such Holder and
upon all future Holders of this Security and of any Security issued upon the registration of
transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Security.

     As provided in and subject to the provisions of the Indenture, the Holder of this Security
shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall
have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities, the Holders of not less than 25% in aggregate Principal Amount of the Outstanding
Securities shall have made written request to the Trustee to institute proceedings in respect of
such Event of Default as Trustee and offered the Trustee reasonable indemnity satisfactory to it,
the Trustee shall not have received from the Holders of a majority in Principal Amount of
Outstanding Securities a direction inconsistent with such request, and the Trustee shall have
failed to institute any such proceeding, for 60 days after receipt of such notice, request and
offer of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this
Security for the enforcement of any payment of the Principal Amount or Fundamental Change Purchase
Price hereof, or interest hereon, on or after the respective due dates expressed herein.

     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the Principal Amount or Fundamental Change Purchase Price of, and interest, including Additional
Interest, if any, on, this Security at the times, place and rate, and in the coin or currency,
herein prescribed.

     As provided in the Indenture and subject to certain limitations (including transfer
restrictions) therein set forth, the transfer of this Security is registrable in the Security
Register, upon surrender of this Security for registration of transfer at the office or agency of
the Company in The City of New York, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Company and the Security Registrar duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities,
of authorized denominations and for the same aggregate Principal Amount, will be issued to the
designated transferee or transferees.

     The Securities are issuable only in registered form in denominations of $1,000 and any
multiple of $1,000 above that amount, as provided in the Indenture and subject to certain
limitations therein set forth. Securities are exchangeable for a like aggregate Principal Amount
of Securities of a different authorized denomination, as requested by the Holder surrendering the
same.

3

 

     No service charge shall be made for any such registration of transfer or exchange, but the
Company and the Security Registrar may require payment of a sum sufficient to cover any tax or
other governmental charge payable in connection therewith.

     Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and the Security Registrar and any agent of the Company or the Trustee may treat the Person
in whose name this Security is registered as the owner hereof for all purposes, whether or not this
Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by
notice to the contrary.

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

     All terms used in this Security that are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

4

 

ASSIGNMENT FORM

     If you want to assign this Security, fill in the form below and have your signature
guaranteed:

     I or we assign and transfer this Security to:

      

      

      

(Print or type name, address and zip code and social security or tax ID number of assignee)

     and irrevocably appoint        
                     
                     
           
                     
                  agent to transfer this Security
on the books of the Company. The agent may substitute another to act for him.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Date:
	 	 	 	 	 	Signed:	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 

(Sign exactly as your name appears on the other side of this Security)

     Signature Guarantee:                                                             

     Note: Signatures must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Security Registrar, which requirements include membership or participation in
the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program”
as may be determined by the Security Registrar in addition to, or in substitution for, STAMP, all
in accordance with the Securities Exchange Act of 1934, as amended.

 

 

     In connection with any transfer of this Security occurring prior to the date which is the
earlier of (i) the date of the declaration by the Commission of the effectiveness of a registration
statement under the Securities Act, as amended (the “Securities Act”), covering resales of this
Security (which effectiveness shall not have been suspended or terminated at the date of the
transfer) and (ii) the second anniversary of the Issue Date set forth on the face of this Security,
the undersigned confirms that it has not utilized any general solicitation or general advertising
in connection with the transfer and that this Security is being transferred:

[Check One]

	 	 	 	 	 
	(1)

	 	o
	 	to the Company or a subsidiary thereof; or
	 
	 	 	 	 
	(2)

	 	o
	 	to a “Qualified Institutional
Buyer” pursuant to and in compliance with Rule 144A under the Securities Act; or 
	 
	 	 	 	 
	(3)

	 	o
	 	pursuant to the exemption from registration provided by
Rule 144 under the Securities Act.

Unless one of the above boxes is checked, the Trustee will refuse to register any of the Securities
evidenced by this certificate in the name of any Person other than the registered Holder thereof,
provided that if box (3) is checked, the Company may require (and shall deliver to the Trustee and
the Security Registrar), prior to registering any such transfer of the Securities, in its sole
discretion, such legal opinions, certifications and other information as the Company may reasonably
request to confirm that such transfer is being made pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the Securities Act.

     If none of the foregoing boxes is checked, the Trustee or Security Registrar shall not be
obligated to register this Security in the name of any Person other than the Holder hereof unless
and until the conditions to any such transfer of registration set forth herein and in Section 3.10
of the Indenture shall have been satisfied.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Date:
	 	 	 	 	 	Signed:	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	(Sign exactly as your name appears on the other
side of this Security)	 	 

     Signature Guarantee:                                                           
   
                 

Note: Signatures must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Security Registrar, which requirements include membership or participation in
the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program”
as may be determined by the Security Registrar in addition to, or in substitution for, STAMP, all
in accordance with the Securities Exchange Act of 1934, as amended.

 

 

TO BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED

     The undersigned represents and warrants that it is purchasing this Security for its own
account or an account with respect to which it exercises sole investment discretion and that it and
any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the
Securities Act and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as the undersigned has
requested pursuant to Rule 144A or has determined not to request such information and that it is
aware that the transferor is relying upon the undersigned’s foregoing representations in order to
claim the exemption from registration provided by Rule 144A.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Date:
	 	 	 	 	 	Signed:	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 

     NOTICE: To be executed by an executive officer.

 

 

CONVERSION NOTICE

If you
want to convert this Security into Common Stock of the Company, check
the box: o

     To convert only part of this Security, state the Principal Amount to be converted (which must
be $1,000 or a multiple of $1,000):

$                 
                    
                    
                    
                    
   

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

 

(Insert other person’s social security or tax ID no.)

 

 

 

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

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Date:
	 	 	 	 	 	Signed:	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 

(Sign exactly as your name appears on the other side of this Security)

     Signature Guarantee:                                                                
                 

Note: Signatures must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Security Registrar, which requirements include membership or participation in
the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program”
as may be determined by the Security Registrar in addition to, or in substitution for, STAMP, all
in accordance with the Securities Exchange Act of 1934, as amended.

 

 

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

	 	 	 	 	 	 	 	 	 
	Dated:	 	 	 	U.S. Bank National Association, as Trustee
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Authorized SignatoryEX-4.2

 

 

WORLD ACCEPTANCE CORPORATION

as Issuer

AND

U.S. Bank National Association

as Trustee

 

Indenture

Dated as of October 10, 2006

 

3.00% Convertible Senior Subordinated Notes due 2011

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	ARTICLE 1	 	 	 	 
	 
	 	Definitions and Other Provisions of General Application	 	 	 	 
	 
	 	 	 	 	 	 
	Section 1.01.
	 	Definitions	 	 	1	 
	Section 1.02.
	 	Compliance Certificates and Opinions	 	 	14	 
	Section 1.03.
	 	Form of Documents Delivered to Trustee	 	 	15	 
	Section 1.04.
	 	Acts of Holders; Record Dates	 	 	16	 
	Section 1.05.
	 	Notices, Etc., to Trustee and Company	 	 	17	 
	Section 1.06.
	 	Notice to Holders; Waiver	 	 	17	 
	Section 1.07.
	 	Conflict with Trust Indenture Act	 	 	18	 
	Section 1.08.
	 	Effect of Headings and Table of Contents	 	 	18	 
	Section 1.09.
	 	Severability Clause	 	 	18	 
	Section 1.10.
	 	Benefits of Indenture	 	 	18	 
	Section 1.11.
	 	Governing Law	 	 	18	 
	Section 1.12.
	 	No Recourse Against Others	 	 	18	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 2	 	 	 	 
	 
	 	Security Forms	 	 	 	 
	 
	 	 	 	 	 	 
	Section 2.01.
	 	Forms Generally	 	 	18	 
	Section 2.02.
	 	Form of Face of Security	 	 	19	 
	Section 2.03.
	 	Form of Reverse of Security	 	 	22	 
	Section 2.04.
	 	Form of Trustee’s Certificate of Authentication	 	 	31	 
	Section 2.05.
	 	Legend on Restricted Securities	 	 	31	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 3	 	 	 	 
	 
	 	The Securities	 	 	 	 
	 
	 	 	 	 	 	 
	Section 3.01.
	 	Title and Terms; Payments	 	 	31	 
	Section 3.02.
	 	Ranking	 	 	32	 
	Section 3.03.
	 	Denominations	 	 	32	 
	Section 3.04.
	 	Execution, Authentication, Delivery and Dating	 	 	32	 
	Section 3.05.
	 	Temporary Securities	 	 	33	 
	Section 3.06.
	 	Registration; Registration of Transfer and Exchange; Restrictions on Transfer	 	 	33	 
	Section 3.07.
	 	Mutilated, Destroyed, Lost and Stolen Securities	 	 	36	 
	Section 3.08.
	 	Persons Deemed Owners	 	 	36	 
	Section 3.09.
	 	Book-Entry Provisions for Global Securities	 	 	37	 
	Section 3.10.
	 	Cancellation and Transfer Provisions	 	 	38	 
	Section 3.11.
	 	CUSIP Numbers	 	 	40	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	ARTICLE 4	 	 	 	 
	 
	 	Particular Covenants of the Company	 	 	 	 
	 
	 	 	 	 	 	 
	Section 4.01.
	 	Payment of Principal and Interest	 	 	40	 
	Section 4.02.
	 	Maintenance of Office or Agency	 	 	40	 
	Section 4.03.
	 	Provisions as to Paying Agent	 	 	41	 
	Section 4.04.
	 	Rule 144A Information Requirement	 	 	42	 
	Section 4.05.
	 	Resale of Certain Securities	 	 	43	 
	Section 4.06.
	 	Commission Filings	 	 	43	 
	Section 4.07.
	 	Book-Entry System	 	 	43	 
	Section 4.08.
	 	Additional Interest under the Registration Rights Agreement	 	 	43	 
	Section 4.09.
	 	Compliance Certificate	 	 	43	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 5	 	 	 	 
	 
	 	Fundamental Changes and Purchases Thereupon	 	 	 	 
	 
	 	 	 	 	 	 
	Section 5.01.
	 	Purchase at Option of Holders Upon a Fundamental Change	 	 	44	 
	Section 5.02.
	 	Effect of Fundamental Change Purchase Notice	 	 	47	 
	Section 5.03.
	 	Withdrawal of Fundamental Change Purchase Notice	 	 	47	 
	Section 5.04.
	 	Deposit of Fundamental Change Purchase Price	 	 	48	 
	Section 5.05.
	 	Securities Purchased in Whole or in Part	 	 	48	 
	Section 5.06.
	 	Covenant to Comply With Securities Laws Upon Purchase of Securities	 	 	48	 
	Section 5.07.
	 	Repayment to the Company	 	 	49	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 6	 	 	 	 
	 
	 	Conversion	 	 	 	 
	 
	 	 	 	 	 	 
	Section 6.01.
	 	Right to Convert	 	 	49	 
	Section 6.02.
	 	Conversion Procedure	 	 	51	 
	Section 6.03.
	 	Payments Upon Conversion	 	 	53	 
	Section 6.04.
	 	Adjustment of Conversion Rate	 	 	55	 
	Section 6.05.
	 	Adjustments of Average Prices	 	 	63	 
	Section 6.06.
	 	Adjustments Upon Certain Fundamental Changes	 	 	63	 
	Section 6.07.
	 	Effect of Recapitalization, Reclassification, Consolidation, Merger or Sale	 	 	64	 
	Section 6.08.
	 	Taxes on Shares Issued	 	 	66	 
	Section 6.09.
	 	Reservation of Shares; Shares to be Fully Paid; Compliance With Governmental Requirements; Listing of Common Stock	 	 	66	 
	Section 6.10.
	 	Responsibility of Trustee	 	 	67	 
	Section 6.11.
	 	Notice to Holders Prior to Certain Actions	 	 	68	 
	Section 6.12.
	 	Stockholder Rights Plan	 	 	69	 
	Section 6.13.
	 	Company Determination Final	 	 	69	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	ARTICLE 7	 	 	 	 
	 
	 	Events of Default; Remedies	 	 	 	 
	 
	 	 	 	 	 	 
	Section 7.01.
	 	Events of Default	 	 	69	 
	Section 7.02.
	 	Acceleration of Maturity; Rescission and Annulment	 	 	71	 
	Section 7.03.
	 	Collection of Indebtedness and Suits for Enforcement by Trustee72	 	 	 	 
	Section 7.04.
	 	Trustee May File Proofs of Claim	 	 	72	 
	Section 7.05.
	 	Application of Money Collected	 	 	73	 
	Section 7.06.
	 	Limitation on Suits	 	 	73	 
	Section 7.07.
	 	Unconditional Right of Holders to Receive Payment	 	 	74	 
	Section 7.08.
	 	Restoration of Rights and Remedies	 	 	74	 
	Section 7.09.
	 	Rights and Remedies Cumulative	 	 	74	 
	Section 7.10.
	 	Delay or Omission Not Waiver	 	 	74	 
	Section 7.11.
	 	Control by Holders	 	 	75	 
	Section 7.12.
	 	Waiver of Past Defaults	 	 	75	 
	Section 7.13.
	 	Undertaking for Costs	 	 	75	 
	Section 7.14.
	 	Waiver of Stay or Extension Laws	 	 	76	 
	Section 7.15.
	 	Violations of Certain Covenants	 	 	76	 
	Section 7.16.
	 	Notice of Default	 	 	76	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 8	 	 	 	 
	 
	 	Consolidation, Merger, Conveyance, Transfer or Lease	 	 	 	 
	 
	 	 	 	 	 	 
	Section 8.01.
	 	Company May Consolidate, etc., Only on Certain Terms	 	 	76	 
	Section 8.02.
	 	Successor Substituted	 	 	77	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 9	 	 	 	 
	 
	 	Subordination of the Securities	 	 	 	 
	 
	 	 	 	 	 	 
	Section 9.01.
	 	Agreement of Subordination	 	 	77	 
	Section 9.02.
	 	Payments to Holders	 	 	77	 
	Section 9.03.
	 	Subrogation of Securities	 	 	80	 
	Section 9.04.
	 	Authorization to Effect Subordination	 	 	82	 
	Section 9.05.
	 	Notice to Trustee	 	 	82	 
	Section 9.06.
	 	Trustee’s Relation to Senior Indebtedness	 	 	83	 
	Section 9.07.
	 	No Impairment of Subordination	 	 	83	 
	Section 9.08.
	 	Certain Conversions Deemed Payment	 	 	83	 
	Section 9.09.
	 	Article Applicable to Paying Agents	 	 	84	 
	Section 9.10.
	 	Senior Indebtedness Entitled to Rely	 	 	84	 
	Section 9.11.
	 	Anti-Layering	 	 	84	 

iii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	ARTICLE 10	 	 	 	 
	 
	 	The Trustee	 	 	 	 
	 
	 	 	 	 	 	 
	Section 10.01.
	 	Duties and Responsibilities of Trustee	 	 	85	 
	Section 10.02.
	 	Notice of Defaults	 	 	86	 
	Section 10.03.
	 	Reliance on Documents, Opinions, Etc	 	 	86	 
	Section 10.04.
	 	No Responsibility for Recitals, Etc	 	 	88	 
	Section 10.05.
	 	Trustee, Paying Agents, Conversion Agents or Registrar May Own Securities	 	 	88	 
	Section 10.06.
	 	Monies to be Held in Trust	 	 	88	 
	Section 10.07.
	 	Compensation and Expenses of Trustee	 	 	88	 
	Section 10.08.
	 	Officers’ Certificate as Evidence	 	 	89	 
	Section 10.09.
	 	Conflicting Interests of Trustee	 	 	89	 
	Section 10.10.
	 	Eligibility of Trustee	 	 	89	 
	Section 10.11.
	 	Resignation or Removal of Trustee	 	 	90	 
	Section 10.12.
	 	Acceptance by Successor Trustee	 	 	91	 
	Section 10.13.
	 	Succession by Merger, Etc	 	 	92	 
	Section 10.14.
	 	Preferential Collection of Claims	 	 	92	 
	Section 10.15.
	 	Trustee’s Application for Instructions from the Company	 	 	93	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 11	 	 	 	 
	 
	 	Holders’ Lists and Reports by Trustee	 	 	 	 
	 
	 	 	 	 	 	 
	Section 11.01.
	 	Company to Furnish Trustee Names and Addresses of Holders	 	 	93	 
	Section 11.02.
	 	Preservation of Information; Communications to Holders	 	 	93	 
	Section 11.03.
	 	Reports By Trustee	 	 	94	 
	Section 11.04.
	 	Reports by Company	 	 	94	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 12	 	 	 	 
	 
	 	Satisfaction and Discharge	 	 	 	 
	 
	 	 	 	 	 	 
	Section 12.01.
	 	Discharge of Indenture	 	 	95	 
	Section 12.02.
	 	Deposited Monies to be Held in Trust by Trustee	 	 	95	 
	Section 12.03.
	 	Paying Agent to Repay Monies Held	 	 	96	 
	Section 12.04.
	 	Return of Unclaimed Monies	 	 	96	 
	Section 12.05.
	 	Reinstatement	 	 	96	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 13	 	 	 	 
	 
	 	Supplemental Indentures	 	 	 	 
	 
	 	 	 	 	 	 
	Section 13.01.
	 	Supplemental Indentures Without Consent of Holders	 	 	96	 
	Section 13.02.
	 	Supplemental Indentures With Consent of Holders	 	 	97	 
	Section 13.03.
	 	Execution of Supplemental Indentures	 	 	98	 
	Section 13.04.
	 	Effect of Supplemental Indentures	 	 	99	 

iv

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	Section 13.05.
	 	Conformity with Trust Indenture Act	 	 	99	 
	Section 13.06.
	 	Reference in Securities to Supplemental Indentures	 	 	99	 
	Section 13.07.
	 	Notice to Holders of Supplemental Indentures	 	 	99	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 14	 	 	 	 
	 
	 	Miscellaneous	 	 	 	 
	 
	 	 	 	 	 	 
	Section 14.01.
	 	Communication by Holders with other Holders	 	 	99	 
	Section 14.02.
	 	When Securities Are Disregarded	 	 	100	 
	Section 14.03.
	 	Rules by Trustee, Paying Agent and Security Registrar	 	 	100	 
	Section 14.04.
	 	Successors	 	 	100	 
	Section 14.05.
	 	Multiple Originals	 	 	100	 
	Section 14.06.
	 	Qualification of Indenture	 	 	100	 
	Section 14.07.
	 	Calculations	 	 	100	 
	Section 14.08.
	 	Waiver of Jury Trial	 	 	100	 
	Section 14.09.
	 	Force Majeure	 	 	101	 

v

 

     INDENTURE, dated as of October 10, 2006, between World Acceptance Corporation, a corporation
duly organized and existing under the laws of the State of South Carolina, as Issuer (the
“Company”), having its principal office at 108 Frederick Street, Greenville, South Carolina 29607
and U.S. Bank National Association, a national banking association, as Trustee (the “Trustee”).

RECITALS OF THE COMPANY

WHEREAS,
the Company has duly authorized the creation of an issue of 3.00% Convertible Senior Subordinated Notes due 2011 (each a “Security” and collectively, the
“Securities”) of the tenor and amount hereinafter set forth, and to provide therefor the Company
has duly authorized the execution and delivery of this Indenture; and

     WHEREAS, all things necessary to make the Securities, when executed by the Company and
authenticated and delivered hereunder and duly issued by the Company, the valid and legally binding
obligations of the Company, and to make this Indenture a valid and legally binding agreement of the
Company, in accordance with the terms of the Securities and the Indenture, have been done;

     NOW, THEREFORE, THIS INDENTURE WITNESSETH, for and in consideration of the premises and the
purchases of the Securities by the Holders thereof, it is mutually agreed, for the benefit of the
Company and the equal and proportionate benefit of all Holders of the Securities, 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:

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

     (ii) all other terms used herein that are defined in the Trust Indenture Act, either
directly or by reference therein, have the meanings assigned to them therein;

     (iii) all accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with GAAP; and

 

 

     (iv) 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, has the meaning specified in Section 1.04.

     “Additional Interest” shall mean Additional Interest as defined in the Registration Rights
Agreement.

     “Additional Shares” has the meaning specified in Section 6.06(a).

     “Affiliate” of any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For the
purposes of this definition, “control” when used with respect to any specified Person means the
power to direct 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 Members” has the meaning specified in Section 3.09(a).

     “Bid Solicitation Agent” means the Trustee or an independent nationally recognized securities
dealer selected by the Company to solicit market bid quotations for the Securities, which shall in
no event be an Affiliate of the Company. The Bid Solicitation Agent shall initially be the
Trustee.

     “Board of Directors” means, with respect to any Person, either the board of directors of such
Person or any duly authorized committee of that board.

     “Board Resolution” means, with respect to any Person, a copy of a resolution certified by the
Secretary or an Assistant Secretary of such Person 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, with respect to any Security, any day other than a Saturday, a Sunday or
a day on which the Federal Reserve Bank of New York is closed.

     “Capital Stock” means any and all shares, interests, participations, rights or other
equivalents (however designated) of corporate stock and limited liability company interests and,
with respect to partnerships, partnership interests (whether general or limited) and any other
interest or participation that confers on a Person the right to receive a share of the profits and
losses of, or distributions of assets of, such partnership.

2

 

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Commission” means the United States 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 shares of common stock, no par value per share, of the Company as
they exist on the date of this Indenture or any other shares of Capital Stock of the Company into
which the Common Stock shall be reclassified or changed or, in the event of a merger, consolidation
or other similar transaction involving the Company that is otherwise permitted hereunder in which
the Company is not the surviving corporation, the common stock, common equity interests, ordinary
shares or depositary shares or other certificates representing common equity interests of such
surviving corporation or its direct or indirect parent corporation.

     “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.

     “Company Request” or “Company Order” means a written request or order signed in the name of
the Company by its Chief Executive Officer, its President or its Chief Financial Officer, and by
its Treasurer or its Secretary, and delivered to the Trustee.

     “Conversion Agent” means the Trustee or such other office or agency designated by the Company
where Securities may be presented for conversion.

     “Conversion Date” has the meaning specified in Section 6.02(b).

     “Conversion Notice” shall have the meaning specified in Section 6.02(b).

     “Conversion Price” means, in respect of each Security, as of any date $1,000 divided by the
Conversion Rate as of such date.

     “Conversion Rate” has the meaning specified in Section 2.03.

     “Corporate Trust Office” means the office of the Trustee at which the corporate trust business
of the Trustee shall, at any particular time, be administered, which office is, at the date as of
which this Indenture is dated, located at U.S. Bank Corporate Trust Services, 214 N. Tryon Street,
27th Floor, Charlotte, North Carolina 28202, Attn: NC Bond Admin (World Acceptance Corporation,
3.00% Convertible Senior Subordinated Notes due 2011).

3

 

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

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

     “Daily Conversion Value” means, for each of the 30 consecutive Trading Days during the
Observation Period, one-thirtieth of the product of (i) the applicable Conversion Rate and (ii) the
Daily VWAP of Common Stock for such Trading Day.

“Daily Settlement Amount” has the meaning specified in Section 6.03(b)

     “Daily VWAP” means, for each of the 30 consecutive Trading Days during the Observation Period,
the per share volume-weighted average price as displayed under the heading “Bloomberg VWAP” on
Bloomberg page “WRLD.UQ <equity> VAP” (or its equivalent successor if such page is not
available) in respect of the period from the scheduled open of trading until the scheduled close of
trading of the primary trading session on such Trading Day (or if such volume-weighted average
price is unavailable, the market value of one share of Common Stock on such Trading Day determined,
using a volume-weighted average method, by a nationally recognized independent investment banking
firm retained for such purpose by the Company).

     “Default” means any event that is or with the passage of time or the giving of notice or both
would become an Event of Default.

     “Depositary” means The Depository Trust Company until a successor Depositary shall have become
such pursuant to the applicable provisions of this Indenture, and thereafter “Depositary” shall
mean such successor Depositary.

     “Designated Senior Indebtedness” means the Indebtedness under the Senior Credit Agreement and
any other Senior Indebtedness in which the instrument creating or evidencing the Indebtedness, or
any related agreements or documents to which the Company is a party, expressly provides that such
indebtedness is “designated senior indebtedness” for purposes of this Indenture (provided that the
instrument, agreement or other document may place limitations and conditions on the right of the
Senior Indebtedness to exercise the rights of Designated Senior Indebtedness).

     “Designated Subsidiary” means, as of any date of determination, any existing or future, direct
or indirect, subsidiary of the Company whose assets, as of such date, constitute 15% or more of the
Company’s total assets on a consolidated basis.

4

 

     “Effective Date” has the meaning specified in Section 6.06(b).

     “Event of Default” has the meaning specified in Section 7.01.

     “Ex-Date” means, except as provided in Section 6.04(f) hereof, with respect to any dividend,
the first date upon which a sale of Common Stock does
not automatically transfer the right to receive the relevant dividend from the seller of the
Common Stock to its buyer.

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

     “Fair Market Value” means the amount which a willing buyer would pay a willing seller in an
arm’s length transaction.

     “Fundamental Change” means the occurrence of any of the following events at any time after the
Securities are originally issued:

     (1) a “person” or “group” within the meaning of Section 13(d) of the Exchange Act other than
the Company, its Subsidiaries or its or their employee benefit plans, files a Schedule TO or any
schedule, form or report under the Exchange Act disclosing that such person or group has become the
direct or indirect “beneficial owner,” as defined in Rule 13d-3 under the Exchange Act, of the
Company’s common equity representing more than 50% of the voting power of the Company’s common
equity;

     (2) consummation of any share exchange, consolidation or merger of the Company (excluding a
merger solely for the purpose of changing the Company’s jurisdiction of incorporation) pursuant to
which the Company’s Common Stock will be converted into cash, securities or other property or any
sale, lease or other transfer in one transaction or a series of transactions of all or
substantially all of the consolidated assets of the Company and its Subsidiaries, taken as a whole,
to any Person other than one of the Company’s Subsidiaries; provided, however, that a transaction
where the holders of more than 50% of all classes of the Company’s common equity immediately prior
to such transaction own, directly or indirectly, more than 50% of all classes of common equity of
the continuing or surviving corporation or transferee or the parent thereof immediately after such
event shall not be a Fundamental Change;

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

     (4) the Common Stock, or other Common Stock or Reference Property into which the Securities
are then convertible, ceases to be listed on a national

5

 

securities exchange or quoted on an
established automated over-the-counter trading market in the U.S.

     A Fundamental Change as a result of clause (2) above will not be deemed to have occurred,
however, if more than 90% of the consideration received or to be received by holders of the
Company’s Common Stock, excluding cash payments for fractional shares and cash payments made in
respect of dissenters’
rights, in connection with the transaction or transactions constituting the Fundamental Change
consists of Publicly Traded Securities and, as a result of such transaction or transactions, the
Securities become convertible into such Publicly Traded Securities, excluding cash payments for
fractional shares.

     “Fundamental Change Company Notice” has the meaning specified in Section 5.01(b).

     “Fundamental Change Purchase Date” has the meaning specified in Section 5.01(a).

     “Fundamental Change Purchase Notice” has the meaning specified in Section 5.01(a).

     “Fundamental Change Purchase Price” has the meaning specified in Section 5.01(a).

     “GAAP” means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or in
such other statements by such other entity as have been approved by a significant segment of the
accounting profession, in each case, as in effect in the United States from time to time.

     “Global Security” means a Security in global form registered in the Security Register in the
name of a Depositary or a nominee thereof.

     “Holder” or “Securityholder” means a Person in whose name a Security is registered in the
Security Register.

     “Indebtedness” means:

     (i) all of the Company’s indebtedness, obligations and other liabilities, contingent
or otherwise, (A) for borrowed money, including overdrafts, foreign exchange contracts,
currency exchange agreements, interest rate protection agreements and any loans or
advances from banks, whether or not evidenced by notes or similar instruments, or (B)
evidenced by credit or loan agreements, bonds, debentures, notes or similar

6

 

instruments,
whether or not the recourse of the lender is to the whole of the assets of the Company or
to only a portion thereof, other than any account payable or other accrued current
liability or obligation incurred in the ordinary course of business in connection with the
obtaining of materials or services;

     (ii) all of the Company’s reimbursement obligations and other liabilities, contingent
or otherwise, with respect to letters of credit, bank guarantees or bankers’ acceptances;

     (iii) all of the Company’s obligations and liabilities, contingent or otherwise, in
respect of leases required, in conformity with generally accepted accounting principles,
to be accounted for as capitalized lease obligations on the Company’s balance sheet;

     (iv) all of the Company’s obligations and other liabilities, contingent or otherwise,
under any lease or related document, including a purchase agreement, conditional sale or
other title retention agreement, in connection with the lease of real property or
improvements thereon (or any personal property included as part of any such lease) which
provides that the Company is contractually obligated to purchase or cause a third party to
purchase the leased property or pay an agreed upon residual value of the leased property,
including the Company’s obligations under such lease or related document to purchase or
cause a third party to purchase such leased property or pay an greed upon residual value
of the leased property to the lessor;

     (v) all of the Company’s obligations, contingent or otherwise, with respect to an
interest rate or other swap, cap, floor or collar agreement or hedge agreement, forward
contract or other similar instrument or agreement or foreign currency hedge, exchange,
purchase or similar instrument or agreement;

     (vi) all of the Company’s direct or indirect guaranties or similar agreements by us
in respect of, and all of the Company’s obligations or liabilities to purchase or
otherwise acquire or otherwise assure a creditor against loss in respect of, indebtedness,
obligations or liabilities of another person of the kinds described in clauses (i) through
(v) above; and

     (vii) any and all deferrals, renewals, extensions, refinancings and refundings of, or
amendments, modifications or supplements to, any indebtedness, obligation or liability of
the kinds described in clauses (i) through (vi) above.

7

 

     “Indenture” means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof, including, for all purposes of this instrument and any such
supplemental indenture, the provisions of the Trust Indenture Act that are deemed to be a part of
and govern this instrument and any such supplemental indenture, respectively.

     “Initial Purchasers” means J.P. Morgan Securities Inc., Jefferies & Company, Inc. and BMO
Capital Markets Corp.

     “Interest Payment Date” means each April 1 and October 1 of each year.

     “Issue Date” means the date the Securities are originally issued as set forth on the face of
the Security under this Indenture.

     “Last Reported Sale Price” means, on any date, the closing sale price per share of the
Company’s Common Stock (or, if no closing sale price is reported, the average of the bid and ask
prices or, if more than one in either case, the average of the average bid and the average ask
prices) on such date as reported in composite transactions for the principal U.S. national or
regional securities exchange on which the Company’s Common Stock is traded. If the Company’s
Common Stock is not listed for trading on a U.S. national or regional securities exchange, “Last
Reported Sale Price” shall mean the last quoted bid price for the Company’s Common Stock in the
over-the-counter market on such date as reported by the National Quotation Bureau Incorporated or
any similar organization. If the Company’s Common Stock is not so quoted, “Last Reported Sale
Price” shall mean the average of the mid-point of the last bid and ask prices for the Company’s
Common Stock on such date from each of at least three nationally recognized independent investment
banking firms selected by the Company for such purpose.

     “Market Disruption Event” means the occurrence or existence for more than one half-hour period
in the aggregate on any Scheduled Trading Day for the Company’s Common Stock of any suspension or
limitation imposed on trading (by reason of movements in price exceeding limits permitted by the
Nasdaq Global Select Market or otherwise) in the Company’s Common Stock or in any options,
contracts or future contracts relating to the Company’s Common Stock, and such suspension or
limitation occurs or exists at any time before 1:00 p.m. (New York City time) on such day.

     “Maturity,” when used with respect to any Security, means the date on which the principal or
Fundamental Change Purchase Price of such Security becomes due and payable as therein or herein
provided, whether at Stated Maturity or Fundamental Change Purchase Date, by declaration of
acceleration or otherwise.

8

 

     “Measurement Period” has the meaning specified in Section 6.01(a).

     “Notice of Default” has the meaning specified in Section 7.01.

     “Observation Period” with respect to any Security tendered for conversion means: (i) if the
related Conversion Date is on or after the 35th
Scheduled Trading Day prior to Stated Maturity, the 30 consecutive Trading Days beginning on,
and including, the 32nd Scheduled Trading Day prior to Stated Maturity; and (ii) in all other
instances, the 30 consecutive Trading Days beginning on, and including, the third Scheduled Trading
Day following the related Conversion Date.

     “Officers’ Certificate” means a certificate signed by the Chief Executive Officer, the
President or the Chief Financial Officer, and by the Treasurer or the Secretary, of the Company,
and delivered to the Trustee. One of the officers signing an Officers’ Certificate given pursuant
to Section 4.09 shall be the principal executive, financial or accounting officer of the Company.

     “Opinion of Counsel” means a written opinion of counsel, who may be external or in-house
counsel for the Company.

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

     (i) Securities theretofore cancelled by the Trustee or accepted by the Trustee for
cancellation;

     (ii) Securities, or portions thereof, for whose payment or purchase 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 Securities;
provided that if such Securities are to be purchased prior to the maturity thereof, notice
of such purchase shall have been given to the Holders as herein provided, or provision
satisfactory to a Responsible Officer of the Trustee shall have been made for giving such
notice;

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

     (iv) Securities converted pursuant to Article 6;

provided, however, that, in determining whether the Holders of the requisite Principal Amount of
the Outstanding Securities have given any request, demand,

9

 

authorization, direction, notice,
consent or waiver hereunder, Securities owned by the Company or any other obligor upon the
Securities or any Affiliate of the Company or of 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 request, demand, authorization, direction, notice, consent
or waiver, only Securities which a Responsible Officer of the Trustee actually knows to be so owned
shall be so disregarded. Securities so owned which have been pledged in good faith may be regarded
as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so
to act with respect to such Securities and that the pledgee is not the Company or any other obligor
upon the Securities or any Affiliate of the Company or of such other obligor.

     “Paying Agent” means any Person (including the Company) authorized by the Company to pay the
Principal Amount of, interest on, including Additional Interest, or Fundamental Change Purchase
Price of, any Securities on behalf of the Company. The Trustee shall be the initial Paying Agent.

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

     “Physical Securities” means permanent certificated Securities in registered form issued in
denominations of $1,000 Principal Amount and multiples thereof.

     “Principal Amount” of a Security means the Principal Amount as set forth on the face of the
Security.

     “Publicly Traded Securities” means, in respect of a transaction set forth in clause (2) of the
definition of Fundamental Change, shares of common stock that are traded on a national securities
exchange or quoted on an established automated over-the-counter trading market in the U.S. or which
will be so traded or quoted when issued or exchanged in connection with such Fundamental Change.

     “Purchase Agreement” means the Purchase Agreement, dated October 3, 2006, entered into by the
Company and the Initial Purchasers in connection with the sale of the Securities.

     “Qualified Institutional Buyer” or “QIB” shall have the meaning specified in Rule 144A.

     “Record Date” means, with respect to the payment of interest on the Securities, including
Additional Interest, if any, the March 15 (whether or not a

10

 

Business Day) immediately preceding an
Interest Payment Date on April 1 and September 15 (whether or not a Business Day) immediately
preceding an Interest Payment Date on October 1.

     “Reference Property” has the meaning specified in Section 6.07.

     “Registration Rights Agreement” means the Registration Rights Agreement, dated as of October
10, 2006, between the Company and the Initial Purchasers, for the benefit of itself and the
Holders, as the same may be amended or modified from time to time in accordance with the terms
thereof.

     “Representative” means the (a) indenture trustee or other trustee, agent or representative for
any Senior Indebtedness (including, without limitation, any agent under the Senior Credit
Agreement) or (b) with respect to any Senior Indebtedness that does not have any such trustee,
agent or other representative, (i) in the case of such Senior Indebtedness issued pursuant to an
agreement providing for voting arrangements as among the holders or owners of such Senior
Indebtedness, any holder or owner of such Senior Indebtedness acting with the consent of the
required persons necessary to bind such holders or owners of such Senior Indebtedness and (ii) in
the case of all other such Senior Indebtedness, the holder or owner of such Senior Indebtedness.

     “Resale Registration Statement” means a registration statement under the Securities Act
registering the Securities for resale pursuant to the terms of the Registration Rights Agreement.

     “Responsible Officer” means any officer or authorized representative of the Trustee within the
Corporate Trust Office of the Trustee with direct responsibility for the administration of this
Indenture and also, with respect to a particular matter, any other officer of the Trustee to whom
such matter is referred because of such officer’s knowledge and familiarity with the particular
subject.

     “Restricted Global Security” means a Global Security representing Restricted Securities.

     “Restricted Security” or “Restricted Securities” has the meaning specified in Section 2.05.

     “Rule 144” means Rule 144 under the Securities Act (including any successor rule thereto), as
the same may be amended from time to time.

     “Rule 144A” means Rule 144A under the Securities Act (including any successor rule thereto),
as the same may be amended from time to time.

     “Rule 144A Information” has the meaning specified in Section 2.03.

11

 

     “Scheduled Trading Day” means a day that is scheduled to be a Trading Day.

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

     “Security” or “Securities” has the meaning specified in the first paragraph of the Recitals of
the Company.

     “Security Register” and “Security Registrar” have the respective meanings specified in Section
3.06.

     “Senior Credit Agreement” means the Amended and Restated Credit Agreement, dated as of October
2, 2006, by and among World Acceptance Corporation, the banks party thereto, and Harris N.A., as
agent for such banks, as amended, modified, supplemented, restated, refinanced or replaced from
time to time, and the Loan Documents (as defined therein) and as amended, modified, supplemented,
restated, refinanced or replaced from time to time.

     “Senior Indebtedness” means the principal of, and premium, if any, interest, including any
interest accruing after the commencement of any bankruptcy or similar proceeding, whether or not a
claim for post-petition interest is allowed as a claim in the proceeding, and rent payable on or in
connection with, and all fees, costs, expenses and other amounts accrued or due on or in connection
with, Indebtedness of the Company, whether secured or unsecured, absolute or contingent, due or to
become due, outstanding on the date of the indenture or thereafter created, incurred, assumed,
guaranteed or in effect guaranteed by the Company, including all deferrals, renewals, extensions or
refundings of, or amendments, modifications or supplements to, the foregoing; provided, however,
that Senior Indebtedness does not include:

     (i) Indebtedness that expressly provides that such Indebtedness (a) shall not be
senior in right of payment to the Securities, (b) shall be equal or junior in right of
payment to the Securities or (c) shall be junior in right of payment to any or all other
Indebtedness;

     (ii) any Indebtedness to any of the Company’s majority-owned Subsidiaries, other than
Indebtedness to the Company’s Subsidiaries arising by reason of guarantees by the Company
of Indebtedness of such Subsidiary to a Person that is not the Company’s Subsidiary; and

     (iii) Indebtedness for trade payables or the deferred purchase price of assets or
services incurred in the ordinary course of business.

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

     “Settlement Amount” has the meaning specified in Section 6.03(a)

     “Spin-Off” has the meaning specified in Section 6.04(c).

     “Stated Maturity,” when used with respect to any Security, means the date specified in such
Security as the fixed date on which an amount equal to the Principal Amount of such Security
together with accrued and unpaid interest, if any, is due and payable.

     “Stock Price” has the meaning specified in Section 6.06(b).

     “Stock Transfer Agent” means American Stock Transfer & Trust Company or such other Person as
may be designated by the Company as the transfer agent for the Common Stock.

     “Subordinated Indebtedness” means, with respect to the Company, any Indebtedness of the
Company that specifically provides that such Indebtedness is subordinated to the Securities.

     “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 which ordinarily has voting power for the election of directors, whether at all times
or only so long as no senior class of stock has such voting power by reason of any contingency.

     “Successor Company” has the meaning specified in Section 8.01(a).

     “Trading Day” means, except as provided in Section 6.03(g) hereof, a day on which (i) trading
in securities generally occurs on the Nasdaq Global Select Market or, if the Company’s Common Stock
is not then listed on the Nasdaq Global Select Market, on the principal other United States
national or regional securities exchange on which the Company’s Common Stock is then listed or, if
the Company’s Common Stock is not then listed on a United States national or regional securities
exchange, in the principal other market on which the Company’s Common Stock is then traded and (ii)
a Last Reported Sale Price for the Company’s Common Stock is available on such securities exchange
or

13

 

market. If the Company’s Common Stock (or other security for which a closing sale price must be
determined) is not so listed or quoted, “Trading Day” means a Business Day.

     “Trading Price” of the Securities on any date of determination means the average of the
secondary market bid quotations per $1,000 principal amount of the Securities obtained by the Bid
Solicitation Agent for $5,000,000 Principal
Amount of the Securities at approximately 3:30 p.m., New York City time, on such determination
date from three independent nationally recognized securities dealers selected by the Company;
provided that, if three such bids cannot reasonably be obtained by the Bid Solicitation Agent but
two such bids are obtained, then the average of the two bids shall be used, and if only one such
bid can reasonably be obtained by the Bid Solicitation Agent, that one bid shall be used. If the
Bid Solicitation Agent cannot reasonably obtain at least one bid for $5,000,000 Principal Amount of
the Securities from a nationally recognized securities dealer, then the Trading Price per $1,000
Principal Amount of Securities will be deemed to be less than 98% of the product of the Last
Reported Sale Price of the Company’s Common Stock and the applicable Conversion Rate.

     “Transfer Restricted Security” means a Security required to bear the restricted legend set
forth in the form of Security in Section 2.02.

     “Trigger Event” has the meaning specified in Section 6.04(b).

     “Trust Indenture Act” means the Trust Indenture Act of 1939 as in effect on the date as of
which this Indenture 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.

     “U.S.” means the United States of America.

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

     Section 1.02 . 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, the Company shall
furnish to the Trustee such certificates and opinions as may be required under the Trust Indenture
Act. Each

14

 

such certificate or opinion shall be given in the form of an Officers’ Certificate, if
to be given by an officer of the Company, or an Opinion of Counsel, if to be given by counsel, and
shall comply with the requirements of the Trust Indenture Act and any other requirement set forth
in this Indenture.

     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, such individual has made such
examination or investigation as is necessary to enable such individual 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 1.03 . 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 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 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 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

15

 

instruments under this Indenture, they may,
but need not, be consolidated and form one instrument.

     Section 1.04 . Acts of Holders; Record Dates.

     (a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one
or more instruments of substantially
similar tenor signed by such Holders in person or by agent duly appointed in writing and,
except as herein otherwise expressly provided, such action shall become effective when such
instrument or instruments are delivered to the Trustee and, where it is hereby expressly required,
to the Company. Such instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as an “Act” of the Holders signing such instrument or
instruments. Proof of execution of any such instrument or of a writing appointing any such agent
shall be sufficient for any purpose of this Indenture and (subject to Section 10.01) conclusive in
favor of the Trustee and the Company, if made in the manner provided in this Section.

     (b) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by a certificate of a notary public or
other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to him the execution thereof. Where such execution
is by a signer acting in a capacity other than his individual capacity, such certificate or
affidavit shall also constitute sufficient proof of his authority. The fact and date of the
execution of any such instrument or writing, or the authority of the Person executing the same, may
also be proved in any other manner which the Trustee reasonably deems sufficient.

     (c) The Company may, in the circumstances permitted by the Trust Indenture Act, fix any day as
the record date for the purpose of determining the Holders entitled to give or take any request,
demand, authorization, direction, notice, consent, waiver or other action, or to vote on any
action, authorized or permitted to be given or taken by Holders. If not set by the Company prior
to the first solicitation of a Holder made by any Person in respect of any such action, or, in the
case of any such vote, prior to such vote, the record date for any such action or vote shall be the
30th day (or, if later, the date of the most recent list of Holders required to be provided
pursuant to Section 11.01) prior to such first solicitation or vote, as the case may be. With
regard to any record date, only the Holders on such date (or their duly designated proxies) shall
be entitled to give or take, or vote on, the relevant action.

     (d) The ownership of Securities shall be proved by the Security Register.

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     (e) Any request, demand, authorization, direction, notice, consent, waiver or other Act of the
Holder of any Security shall bind every future Holder of the same Security and the Holder of every
Security issued upon the registration of transfer thereof or in exchange therefor or in lieu
thereof in respect of anything done, omitted or suffered to be done by the Trustee or the Company
in reliance thereon, whether or not notation of such action is made upon such Security.

     Section 1.05 . Notices, Etc., to Trustee and Company. Any request, demand, authorization,
direction, notice, consent, waiver or Act of Holders or other document provided or permitted by
this Indenture to be made upon, given or furnished to, or filed with:

     (i) the Trustee by any Holder or by the Company shall be sufficient for every purpose
hereunder if made, given, furnished or filed in writing to or with the Trustee at its
applicable Corporate Trust Office; or

     (ii) the Company by the Trustee or by any Holder shall be sufficient for every
purpose hereunder (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to the Company addressed to it at the address of its
principal office specified in the first paragraph of this instrument or at any other
address previously furnished in writing to the Trustee by the Company, Attention: General
Counsel.

     Section 1.06 . 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 such Holder’s address as it appears in the Security Register, not later than the latest
date (if any), and not earlier than the earliest date (if any), prescribed 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.

17

 

     Whenever under this Indenture the Trustee is required to provide any notice by mail, in all
cases the Trustee may alternatively provide notice by overnight courier or by telefacsimile, with
confirmation of transmission.

     Section 1.07 . Conflict with Trust Indenture Act. If any provision hereof limits, qualifies
or conflicts with a provision of the Trust Indenture Act that is required hereunder to be a part of
and govern this 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 1.08 . 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, and all Article and Section references are to Articles and Sections, respectively, of this
Indenture unless otherwise expressly stated.

     Section 1.09 . Severability Clause. In case any provision in this Indenture or in the
Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

     Section 1.10 . Benefits of Indenture. Nothing in this Indenture or in the Securities,
express or implied, shall give to any Person, other than the parties hereto and their respective
successors hereunder and the Holders of Securities, any benefit or any legal or equitable right,
remedy or claim under this Indenture.

     Section 1.11 . Governing Law. This Indenture and the Securities shall be governed by and
construed in accordance with the laws of the State of New York.

     Section 1.12 . No Recourse Against Others. No director, officer, employee, stockholder or
Affiliate of the Company from time to time shall have any liability for any obligations of the
Company under the Securities or this Indenture. Each Holder by accepting a Security waives and
releases such liability.

ARTICLE 2

Security Forms

     Section 2.01 . Forms Generally. The Securities and the Trustee’s certificates of
authentication shall be in substantially the forms set forth in this Article, with such appropriate
insertions, omissions, substitutions and other variations as are required or permitted by this
Indenture, and may have such

18

 

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
or Depositary therefor, the Code and regulations thereunder, or as may, consistently herewith, be
determined by the officers executing such Securities, as evidenced by their execution thereof.

     The Securities shall initially be issued in the form of permanent Global Securities in
registered form in substantially the form set forth in this Article. The
aggregate Principal Amount of the Global Securities may from time to time be decreased by
adjustments made on the records of the Trustee, as custodian for the Depositary, as hereinafter
provided.

     Section 2.02 . Form of Face of Security. (a) each Security shall bear the following legend
if it is a Restricted Security: THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND ACCORDINGLY, MAY NOT BE OFFERED OR
SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER AGREES
(1) THAT IT WILL NOT WITHIN THE LATER OF (X) TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY
AND (Y) THREE MONTHS AFTER IT CEASES TO BE AN AFFILIATE (WITHIN THE MEANING OF RULE 144 ADOPTED
UNDER THE SECURITIES ACT) OF THE ISSUER, RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY
OR THE COMMON STOCK ISSUABLE UPON CONVERSION OF SUCH SECURITY, EXCEPT (A) TO THE ISSUER; (B) UNDER
A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT; (C) TO A PERSON
THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A ADOPTED
UNDER THE SECURITIES ACT) THAT IS PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER
QUALIFIED INSTITUTIONAL BUYER AND TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A, ALL IN COMPLIANCE WITH RULE 144A (IF AVAILABLE); OR (D) UNDER ANY OTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT; AND (2) THAT IT WILL,
PRIOR TO ANY TRANSFER OF THIS SECURITY WITHIN THE LATER OF (X) TWO YEARS AFTER THE ORIGINAL
ISSUANCE OF THIS SECURITY AND (Y) THREE MONTHS AFTER IT CEASES TO BE AN AFFILIATE (WITHIN THE
MEANING OF RULE 144 ADOPTED UNDER THE SECURITIES ACT) OF THE ISSUER, FURNISH TO THE TRUSTEE AND THE
ISSUER SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS MAY BE REQUIRED PURSUANT TO THE
INDENTURE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN

19

 

EXEMPTION FROM, OR IN A
TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

     (b) Each Security that is a Global Security shall bear the following legend: THIS SECURITY IS
A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN
THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN
PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN
WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A
NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (“DTC”), A NEW YORK CORPORATION, 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 IN AS
MUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     (c) The face of each Security shall be substantially in the following form:

3.00% Convertible Senior Subordinated Notes due 2011

	 	 	 	 	 
	No. ___

	 	CUSIP NO.
	 	U.S. $                    

     World Acceptance Corporation, a corporation duly organized and validly existing under the laws
of the State of South Carolina (herein called the “Company”), which term includes any successor
corporation under the Indenture referred to on the reverse hereof), for value received hereby
promises to pay to [     ], the principal sum of [          ]
United States Dollars ($[     ]) (which amount may from time to time be decreased by adjustments
made on the records of the Trustee, as custodian for the Depositary, in accordance with the rules
and procedures of the Depositary) on October 1, 2011. Payment of the principal of this Security
shall be made by check mailed to the address of the Holder of this Security specified in the
register of Securities, or, at the option of the Company, by wire transfer in immediately available
funds, in such lawful

20

 

money of the United States of America as at the time of payment shall be
legal tender for the payment of public and private debts.

     The issue date of this Security is October 10, 2006.

     Reference is made to the further provisions of this Security set forth on the reverse hereof,
including, without limitation, provisions giving the Holder the right to convert this Security and
to require the Company to purchase this Security upon certain events, in each case, on the terms
and subject to the limitations referred to on the reverse hereof and as more fully specified in the
Indenture. Such further provisions shall for all purposes have the same effect as though fully set forth
at this place. Capitalized terms used but not defined herein shall have such meanings as are
ascribed to such terms in the Indenture.

     This Security shall be deemed to be a contract made under the laws of the State of New York,
and for all purposes shall be construed in accordance with and governed by the laws of said State.

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

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

	 	 	 	 	 
	 	 	WORLD ACCEPTANCE CORPORATION
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

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     Section 2.03. Form of Reverse of Security. The reverse of each Security shall be substantially in the
following form:

WORLD ACCEPTANCE CORPORATION

3.00% Convertible Senior Subordinated Notes due 2011

     This Security is one of a duly authorized issue of Securities of the Company, designated as
its 3.00% Convertible Senior Subordinated Notes due 2011 (the “Securities”), all issued or to be
issued under and pursuant to an Indenture dated as of October 10, 2006 (the “Indenture”), between
the Company and U.S. Bank National Association (the “Trustee”), to which Indenture and all
indentures supplemental thereto reference is hereby made for a description of the rights,
limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company
and the Holders of the Securities.

     Interest. The Securities will bear interest at a rate of 3.00% per year until
Maturity. Interest on the Securities will accrue from October 10, 2006, or from the most recent
date on which interest has been paid. Interest will be payable semiannually in arrears on April 1
and October 1, beginning April 1, 2007, and at Maturity.

     Interest will be paid to the person in whose name a Security is registered at the close of
business on the March 15 (whether or not a Business Day) or September 15 (whether or not a Business
Day), as the case may be, immediately preceding the relevant Interest Payment Date. Interest on the
Securities will be computed on the basis of a 360-day year composed of twelve 30-day months.

     Ranking. The Securities rank equally in right of payment with all the Company’s
existing and future unsecured Senior Subordinated Indebtedness and are senior in right of payment
to all of the Company’s existing and future Subordinated Indebtedness, if any, as set forth in the
Indenture. The Securities will rank junior to all existing and future Senior Indebtedness.

     Redemption at the Option of the Company. The Company may not redeem any of the
Securities at its option prior to maturity.

     Purchase by the Company at the Option of the Holder Upon a Fundamental Change.
Subject to the terms and conditions of the Indenture, the Company shall become obligated, at the
option of the Holder, to purchase the Securities if a Fundamental Change occurs at any time prior
to Stated Maturity at 100% of the Principal Amount plus accrued and unpaid interest, including
Additional Interest, if any, to, but excluding, the Fundamental Change Purchase Date, which amount
will be paid in cash.

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     Withdrawal of Fundamental Change Purchase Notice. Holders have the right to withdraw,
in whole or in part, any Fundamental Change Purchase Notice, as the case may be, by delivering to
the Paying Agent a written notice of withdrawal in accordance with the provisions of the Indenture.

     Payment of Fundamental Change Purchase Price. If cash sufficient to pay the
Fundamental Change Purchase Price of all Securities or portions thereof to be purchased on a
Fundamental Change Purchase Date is deposited with the Paying Agent on the Fundamental Change
Purchase Date, such Securities will cease to be outstanding and interest will cease to accrue on
such Securities (or portions thereof) immediately after such Fundamental Change Purchase Date, and
the Holder thereof shall have no other rights as such (other than the right to receive the
Fundamental Change Purchase Price upon surrender of such Security).

     Conversion. Subject to and in compliance with the provisions of the Indenture
(including without limitation the conditions of conversion of this Security set forth in Article 6
thereof), the Holder hereof has the right, at its option, to convert the Principal Amount hereof or
any portion of such principal which is $1,000 or a multiple thereof, into, subject to Section 6.01
of the Indenture, cash and shares of Common Stock, if any, at the Conversion Rate. The Conversion
Rate is initially 16.0229 shares of Common Stock per $1,000 Principal Amount of Securities
(equivalent to a conversion price of $62.41), subject to adjustment in certain events described in
the Indenture. Upon conversion, the Company will pay cash and shares of Common Stock, if any,
based on a Settlement Amount calculated on a proportionate basis for each day of the applicable
Observation Period, as set forth in the Indenture. No fractional shares will be issued upon any
conversion, but an adjustment and payment in cash will be made, as provided in the Indenture, in
respect of any fraction of a share which would otherwise be issuable upon the surrender of any
Securities for conversion. Securities in respect of which a Holder is exercising its right to
require purchase on a Fundamental Change Purchase Date may be converted only if such Holder
withdraws its election to exercise such right in accordance with the terms of the Indenture.

     In the event of a deposit or withdrawal of an interest in this Security, including an
exchange, transfer, purchase or conversion of this Security in part only, the Trustee, as custodian
of the Depositary, shall make an adjustment on its records to reflect such deposit or withdrawal in
accordance with the rules and procedures of the Depositary.

     Subject to certain limitations in the Indenture, at any time when the Company is not subject
to Section 13 or 15(d) of the United States Securities Exchange Act of 1934, as amended, upon the
request of a Holder of a Restricted Security, the Company will promptly furnish or cause to be
furnished Rule 144A Information (as defined below) to such Holder of Restricted Securities, or to a

23

 

prospective purchaser of any such security designated by any such Holder, to the extent
required to permit compliance by any such Holder with Rule 144A under the Securities Act. “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).

     If an Event of Default shall occur and be continuing, the Principal Amount plus interest,
including Additional Interest, if any, through such date on all the Securities may be declared due
and payable in the manner and with the effect provided in the Indenture.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities under the Indenture at any time by the Company and the Trustee with the consent of the
Holders of not less than a majority in aggregate Principal Amount of the Outstanding Securities.
The Indenture also contains provisions permitting the Holders of specified percentages in aggregate
Principal Amount of the Outstanding Securities, on behalf of the Holders of all the Securities, to
waive compliance by the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the Holder of any
provision of or applicable to this Security shall be conclusive and binding upon such Holder and
upon all future Holders of this Security and of any Security issued upon the registration of
transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Security.

     As provided in and subject to the provisions of the Indenture, the Holder of this Security
shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall
have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities, the Holders of not less than 25% in aggregate Principal Amount of the Outstanding
Securities shall have made written request to the Trustee to institute proceedings in respect of
such Event of Default as Trustee and offered the Trustee reasonable indemnity satisfactory to it,
the Trustee shall not have received from the Holders of a majority in Principal Amount of
Outstanding Securities a direction inconsistent with such request, and the Trustee shall have
failed to institute any such proceeding, for 60 days after receipt of such notice, request and
offer of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this
Security for the enforcement of any payment of the Principal Amount or Fundamental Change Purchase
Price hereof, or interest hereon, on or after the respective due dates expressed herein.

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     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the Principal Amount or Fundamental Change Purchase Price of, and interest, including Additional
Interest, if any, on, this Security at the times, place and rate, and in the coin or currency,
herein prescribed.

     As provided in the Indenture and subject to certain limitations (including transfer
restrictions) therein set forth, the transfer of this Security is registrable in the Security
Register, upon surrender of this Security for registration of transfer at the office or agency of
the Company in The City of New York, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Company and the Security Registrar duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities,
of authorized denominations and for the same aggregate Principal Amount, will be issued to the
designated transferee or transferees.

     The Securities are issuable only in registered form in denominations of $1,000 and any
multiple of $1,000 above that amount, as provided in the Indenture and subject to certain
limitations therein set forth. Securities are exchangeable for a like aggregate Principal Amount
of Securities of a different authorized denomination, as requested by the Holder surrendering the
same.

     No service charge shall be made for any such registration of transfer or exchange, but the
Company and the Security Registrar may require payment of a sum sufficient to cover any tax or
other governmental charge payable in connection therewith.

     Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and the Security Registrar and any agent of the Company or the Trustee may treat the Person
in whose name this Security is registered as the owner hereof for all purposes, whether or not this
Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by
notice to the contrary.

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

     All terms used in this Security that are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

25

 

ASSIGNMENT FORM

     If you want to assign this Security, fill in the form below and have your signature
guaranteed:

     I or we assign and transfer this Security to:

	 
	 

	 

	 

	 

	 

(Print or type name, address and zip code and social security or tax ID number of assignee)

     and irrevocably appoint                                                    agent to transfer this Security
on the books of the Company. The agent may substitute another to act for him.

     Date:                                              
                                        Signed:                         
                    
         

     (Sign exactly as your name appears on the other side of this Security)

     Signature Guarantee:            
                                    
                  
                     
                     
         

Note: Signatures must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Security Registrar, which requirements include membership or participation in
the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program”
as may be determined by the Security Registrar in addition to, or in substitution for, STAMP, all
in accordance with the Securities Exchange Act of 1934, as amended.

26

 

     In connection with any transfer of this Security occurring prior to the date which is the
earlier of (i) the date of the declaration by the Commission of the effectiveness of a registration
statement under the Securities Act, as amended (the “Securities Act”), covering resales of this
Security (which effectiveness shall not have been suspended or terminated at the date of the
transfer) and (ii) the second anniversary of the Issue Date set forth on the face of this Security,
the undersigned confirms that it has not utilized any general solicitation or general advertising
in connection with the transfer and that this Security is being transferred:

[Check One]

	 	 	 	 	 	 	 	 	 
	 

	 	 	(1	)	 	o
	 	to the Company or a subsidiary thereof; or
	 
	 	 	 	 	 	 	 	 
	 

	 	 	(2	)	 	o
	 	to a “Qualified Institutional Buyer” pursuant to and in
compliance with Rule 144A under the Securities Act; or
	 
	 	 	 	 	 	 	 	 
	 

	 	 	(3	)	 	o
	 	pursuant to the exemption from registration provided by
Rule 144 under the Securities Act.

Unless one of the above boxes is checked, the Trustee will refuse to register any of the Securities
evidenced by this certificate in the name of any Person other than the registered Holder thereof,
provided that if box (3) is checked, the Company may require (and shall deliver to the Trustee and
the Security Registrar), prior to registering any such transfer of the Securities, in its sole
discretion, such legal opinions, certifications and other information as the Company may reasonably
request to confirm that such transfer is being made pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the Securities Act.

     If none of the foregoing boxes is checked, the Trustee or Security Registrar shall not be
obligated to register this Security in the name of any Person other than the Holder hereof unless
and until the conditions to any such transfer of registration set forth herein and in Section 3.10
of the Indenture shall have been satisfied.

     Date:           
                      
                      
                      
         Signed:             
                     
                    

27

 

(Sign exactly as your name appears
 on the other side of this Security)

     Signature Guarantee:       
                      
                      
                      
                      
                      

Note: Signatures must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Security Registrar, which requirements include membership or participation in
the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program”
as may be determined by the Security Registrar in addition to, or in substitution for, STAMP, all
in accordance with the Securities Exchange Act of 1934, as amended.

28

 

TO BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED

     The undersigned represents and warrants that it is purchasing this Security for its own
account or an account with respect to which it exercises sole investment discretion and that it and
any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the
Securities Act and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as the undersigned has
requested pursuant to Rule 144A or has determined not to request such information and that it is
aware that the transferor is relying upon the undersigned’s foregoing representations in order to
claim the exemption from registration provided by Rule 144A.

     Date:       
                      
                               
                   
       Signed:           
                   
                    
    

     NOTICE: To be executed by an executive officer.

29

 

CONVERSION NOTICE

     If you want to convert this Security into Common Stock of the Company, check the box: o

     To convert only part of this Security, state the Principal Amount to be converted (which must
be $1,000 or a multiple of $1,000):

     $                                                   

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

 

(Insert other person’s social security or tax ID no.)

	 
	 

	 

	 

	 

	 

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

     Date:       
                      
                         
      
                  
        Signed:          
                    
                     
   

     (Sign exactly as your name appears on the other side of this Security)

     Signature Guarantee:         
                       
                       
                                                              

Note: Signatures must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Security Registrar, which requirements include membership or participation in
the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program”
as may be determined by the Security Registrar in addition to, or in substitution for, STAMP, all
in accordance with the Securities Exchange Act of 1934, as amended.

30

 

     Section 2.04 . Form of Trustee’s Certificate of Authentication. This is one of the
Securities referred to in the within-mentioned Indenture.

	 	 	 	 	 	 	 
	Dated:                     	 	U.S. Bank National Association, as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	 	 	 
	 

	 	 	 	 

Authorized Signatory
	 	 

     Section 2.05 . Legend on Restricted Securities. During the period beginning on the Issue
Date and ending on the date two years from such date, any Security, including any Security issued
in exchange therefor or in lieu thereof, shall be deemed a “Restricted Security” and shall be
subject to the restrictions on transfer provided in the legends set forth on the face of the form
of Security in Section 2.02; provided, however, that the term “Restricted Security” shall not
include any Securities as to which restrictions have been terminated in accordance with Section
3.06. All Securities shall bear the applicable legends set forth on the face of the form of
Security in Section 2.02. Except as provided in Section 3.06 and Section 3.10, the Trustee shall
not issue any unlegended Security until it has received an Officers’ Certificate from the Company
directing it to do so.

ARTICLE 3

The Securities

     Section 3.01 . Title and Terms; Payments. The aggregate Principal Amount of Securities that
may be authenticated and delivered under this Indenture is initially limited to $110,000,000,
except for Securities authenticated and delivered upon registration or transfer of, or in exchange
for, or in lieu of, other Securities pursuant to Sections 2.05, 3.05, 3.06, 3.07 or 5.05.

     The Securities shall be known and designated as the “3.00% Convertible Senior Subordinated
Notes due 2011” of the Company. The Principal Amount shall be payable at Stated Maturity.

     The Principal Amount of and interest (including any Additional Interest) on Global Securities
registered in the name of The Depository Trust Company or its nominee shall be paid by wire
transfer in immediately available funds to The Depository Trust Company or its nominee, as
applicable, as the registered Holder of such Global Security.

31

 

     The Principal Amount of Physical Securities shall be payable at the Corporate Trust Office and
at any other office or agency maintained by the Company for such purpose. Interest on Physical
Securities will be payable (i) to Holders having an aggregate Principal Amount of $1,000,000 or
less of Securities, by check mailed to such Holders at the address set forth in the Security
Register and (ii) to Holders having an aggregate Principal Amount of more than $1,000,000 of
Securities, either by check mailed to such Holders or, upon application by a Holder to the Security
Registrar not later than the relevant Record Date for such interest payment, 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 Security Registrar to the
contrary.

     If any Interest Payment Date (other than an Interest Payment Date coinciding with Stated
Maturity or earlier Fundamental Change Purchase Date) of a Security falls on a day that is not a
Business Day, such Interest Payment Date shall be postponed to the next succeeding Business Day. If
Stated Maturity or earlier Fundamental Change Purchase Date would fall on a day that is not a
Business Day, the required payment of interest, if any, and Principal Amount (and Additional
Interest, if any), shall be made on the next succeeding Business Day and no interest on such
payment shall accrue for the period from and after Stated Maturity or earlier Fundamental Change
Purchase Date to such next succeeding Business Day. If a Record Date is not a Business Day, the
Record Date will be unaffected.

     Section 3.02 . Ranking. The Securities constitute the Senior Subordinated Indebtedness of
the Company, as set forth in Article 9 hereof.

     Section 3.03 . Denominations. The Securities shall be issuable only in registered form
without coupons and in denominations of $1,000 and any multiple of $1,000 above that amount.

     Section 3.04 . Execution, Authentication, Delivery and Dating. The Securities shall be
executed on behalf of the Company by its Chief Executive Officer, its President, its Chief
Financial Officer or its Treasurer.

     Securities 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
Securities or did not hold such offices at the date of such Securities.

     At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities executed by the Company to the Trustee for authentication, together
with a Company Order for the authentication

32

 

and delivery of such Securities. The Company Order shall specify the amount of Securities to
be authenticated, and shall further specify the amount of such Securities to be issued as a Global
Security or as Physical Securities. The Trustee in accordance with such Company Order shall
authenticate and deliver such Securities as in this Indenture provided and not otherwise.

     Each Security shall be dated the date of its authentication.

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

     Section 3.05 . Temporary Securities. Pending the preparation of definitive Securities, the
Company may execute, and upon Company Order the Trustee shall authenticate and deliver, temporary
Securities that are printed, lithographed, typewritten, mimeographed or otherwise produced, in any
authorized denomination, substantially of the tenor of the definitive Securities in lieu of which
they are issued and with such appropriate insertions, omissions, substitutions and other variations
as the officers executing such Securities may determine, as evidenced by their execution of such
Securities; provided, that any such temporary Securities shall bear legends on the face of such
Securities as set forth in Section 2.02.

     If temporary Securities are issued, the Company will cause definitive Securities to be
prepared without unreasonable delay. After the preparation of definitive Securities, the temporary
Securities shall be exchangeable for definitive Securities upon surrender of the temporary
Securities at any office or agency of the Company designated pursuant to Section 4.02, without
charge to the Holder. Upon surrender for cancellation of any one or more temporary Securities, the
Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a like
Principal Amount of Physical Securities of authorized denominations. Until so exchanged, the
temporary Securities shall in all respects be entitled to the same benefits under this Indenture as
Physical Securities.

Section 3.06 . Registration; Registration of Transfer and Exchange; Restrictions on Transfer.

     (a) The Company shall cause to be kept at the applicable Corporate Trust Office of the Trustee
a register (the register maintained in such office and in any other office or agency designated
pursuant to Section 4.02 being herein sometimes collectively referred to as the “Security
Register”) in which, subject to such reasonable regulations as it may prescribe, the Company shall
provide for

33

 

the registration of Securities and of transfers of Securities. The Trustee is hereby
appointed “Security Registrar” (the “Security Registrar”) for the purpose of registering Securities
and transfers of Securities as herein provided.

     Upon surrender for registration of transfer of any Security at an office or agency of the
Company designated pursuant to Section 4.02 for such purpose, the Company shall execute, and the
Trustee shall authenticate and deliver, in the name of the designated transferee or transferees,
one or more new Securities of any authorized denominations and of a like aggregate Principal Amount
and tenor, each such Security bearing such restrictive legends as may be required by this Indenture
(including Section 2.02, 2.05, 3.06(b) and 3.10).

     At the option of the Holder and subject to the other provisions of this Section 3.06 and to
Section 3.10, Securities may be exchanged for other Securities of any authorized denominations and
of a like aggregate Principal Amount and tenor, upon surrender of the Securities to be exchanged at
such office or agency. Whenever any Securities are so surrendered for exchange, the Company shall
execute, and the Trustee shall authenticate and deliver, the Securities which the Holder making the
exchange is entitled to receive.

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

     Every Security presented or surrendered for registration of transfer or for exchange shall (if
so required by the Company or the Trustee) be duly endorsed, or be accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security Registrar duly
executed, by the Holder thereof or his attorney duly authorized in writing. As a condition to the
registration of transfer of any Restricted Securities, the Company or the Trustee may require
evidence satisfactory to them as to the compliance with the restrictions set forth in the legend on
such securities.

     Except as provided in the following sentence and in Section 3.10, all Securities originally
issued hereunder and all Securities issued upon registration of transfer or exchange or replacement
thereof shall be Restricted Securities and shall bear the legends required by Sections 2.02 and
2.05, unless the Company shall have delivered to the Trustee (and the Security Registrar, if other
than the Trustee) a Company Order stating that the Security is not a Restricted Security and may be
issued without such legend thereon. Securities that are issued upon registration of transfer of,
or in exchange for, Securities that are not Restricted Securities shall not be Restricted
Securities and shall not bear such legend.

34

 

     No service charge shall be made for any registration of transfer or exchange of Securities,
but the Company and the Security Registrar may require payment of a sum sufficient to cover any tax
or other governmental charge that may be imposed in connection with any registration of transfer or
exchange of Securities, other than exchanges pursuant to Section 3.05 not involving any transfer.

     Neither the Company nor the Security Registrar shall be required to exchange or register a
transfer of any Security (i) that has been surrendered for conversion or (ii) as to which a
Fundamental Change Purchase Notice has been delivered and not withdrawn, except that where such
Fundamental Change Purchase Notice provides that such Security is to be purchased only in part, the
Company and the Security Registrar shall be required to exchange or register a transfer of the
portion thereof not to be purchased.

     (b) Beneficial ownership of every Restricted Security shall be subject to the restrictions on
transfer provided in the legends required to be set forth on the face of each Restricted Security
pursuant to Sections Section 2.02 and 2.05, unless such restrictions on transfer shall be
terminated in accordance with this Section 3.06(b) or Section 3.10. The Holder of each Restricted
Security, by such Holder’s acceptance thereof, agrees to be bound by such restrictions on transfer.

     The restrictions imposed by this Section 3.06 and by Section 2.02, 2.05 and 3.10 upon the
transferability of any particular Restricted Security shall cease and terminate upon delivery by
the Company to the Trustee of an Officers’ Certificate stating that such Restricted Security has
been sold pursuant to an effective Resale Registration Statement under the Securities Act or
transferred in compliance with Rule 144 under the Securities Act (or any successor provision
thereto). Any Restricted Security as to which the Company has delivered to the Trustee an
Officers’ Certificate stating that such restrictions on transfer shall have expired in accordance
with their terms or shall have terminated may, upon surrender of such Restricted Security for
exchange to the Security Registrar in accordance with the provisions of this Section 3.06, be
exchanged for a new Security, of like tenor and aggregate Principal Amount, which shall not bear
the restrictive legends required by Section 2.02 and 2.05. The Company shall inform the Trustee in
writing of the effective date of any resale registration statement registering the Securities under
the Securities Act. The Trustee shall not be liable for any action taken or omitted to be taken by
it in good faith in accordance with the aforementioned resale registration statement.

     As used in the preceding two paragraphs of this Section 3.06, the term “transfer” encompasses
any sale, pledge, transfer or other disposition of any Restricted Security.

35

 

     (c) Neither the Trustee, the Security Registrar nor any of their respective agents shall (i)
have any duty to monitor compliance with or with respect to any federal or state or other
securities or tax laws or (ii) have any duty to obtain documentation relating to any transfers or
exchanges other than as specifically required hereunder.

     Section 3.07 . Mutilated, Destroyed, Lost and Stolen Securities. If any mutilated Security
is surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate and
deliver in exchange therefor a new Security of like tenor and Principal Amount and bearing a number
not contemporaneously outstanding.

     If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction
of the destruction, loss or theft of any Security 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 and the Trustee that such Security 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 Security, a new Security of like tenor and Principal Amount
and bearing a number not contemporaneously outstanding.

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

     Upon the issuance of any new Security under this Section 3.07, the Company may require payment
by the Holder 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 Security issued pursuant to this Section 3.07 in lieu of any destroyed, lost or
stolen Security shall constitute an original additional contractual obligation of the Company,
whether or not the destroyed, lost or stolen Security 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 Securities duly issued hereunder.

     The provisions of this Section 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 Securities.

     Section 3.08 . Persons Deemed Owners. Prior to due presentment of a Security for
registration of transfer, the Company, the Trustee, the Security Registrar and any agent of the
Company, the Trustee or the Security Registrar

36

 

may treat the Person in whose name such Security is registered as the owner of such Security
for the purpose of receiving payment of the principal of such Security and for all other purposes
whatsoever, whether or not such Security be overdue, and neither the Company, the Trustee, the
Security Registrar nor any agent of the Company, the Trustee or the Security Registrar shall be
affected by notice to the contrary.

     Section 3.09 . Book-Entry Provisions for Global Securities.

     (a) The Global Securities initially shall (i) be registered in the name of the Depositary or
the nominee of such Depositary, (ii) be delivered to the Trustee as custodian for the Depositary
and (iii) bear legends as set forth on the face of the form of Security in Section 2.02.

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

     (b) Transfers of the Global Securities shall be limited to transfers in whole, but not in
part, to the Depositary, its successors or their respective nominees. Interests of beneficial
owners in a Global Security may be transferred or exchanged, in whole or in part, for Physical
Securities, upon the request of a participant of the Depositary by written notice given to the
Trustee by or on behalf of the Depositary, in accordance with the rules and procedures of the
Depositary and the provisions of Section 3.10. In addition, Physical Securities shall be
transferred to all beneficial owners in exchange for their beneficial interests in the Global
Securities if (i) such Depositary has notified the Company that the Depositary (A) is unwilling or
unable to continue as Depositary for such Global Security or (B) has ceased to be a clearing agency
registered under the Exchange Act when the Depositary is required to be so registered to act as
such Depositary and, in either such case, no successor Depositary shall have been appointed within
90 days of such notification, (ii) there shall have occurred and be continuing an Event of Default
with respect to such Global Security and the Trustee has received a request from the Depositary
that Physical Securities be issued or (iii) the Company, at its option, notifies the Trustee that
it elects to cause the issuance of Physical Securities, subject to applicable procedures of the
Depositary; provided that Holders of Physical Securities offered and sold in

37

 

reliance on Rule 144A shall have the right, subject to applicable law, to request that such
Securities be exchanged for interests in the applicable Global Security.

     (c) In connection with any transfer or exchange of a portion of the beneficial interest in the
Global Security to beneficial owners pursuant to paragraph (b) above, the Security Registrar shall
(if one or more Physical Securities are to be issued) reflect on its books and records the date and
a decrease in the Principal Amount of the Global Security in an amount equal to the Principal
Amount of the beneficial interest in the Global Security to be transferred, and the Company shall
execute, and the Trustee shall authenticate and deliver, one or more Physical Securities of like
tenor and amount.

     (d) In connection with the transfer of the entire Global Security to beneficial owners
pursuant to paragraph (b) above, the Global Security shall be deemed to be surrendered to the
Trustee for cancellation, and the Company shall execute, and the Trustee shall authenticate and
deliver, to each beneficial owner identified by the Depositary in exchange for its beneficial
interest in the Global Security, an equal aggregate Principal Amount of Physical Securities of
authorized denominations and the same tenor.

     (e) Any Physical Security constituting a Restricted Security delivered in exchange for an
interest in the Global Security pursuant to paragraph (c) or (d) above shall, except as otherwise
provided by paragraph (c) of Section 3.10, bear the legend regarding transfer restrictions
applicable to the Physical Securities set forth on the face of the form of Security in Section
2.02.

     (f) The Holder of the Global Securities may grant proxies and otherwise authorize any Person,
including Agent Members and Persons that may hold interests through Agent Members, to take any
action that a Holder is entitled to take under this Indenture or the Securities.

     Section 3.10 . Cancellation and Transfer Provisions. The Company at any time may deliver to
the Trustee for cancellation any Securities previously authenticated and delivered hereunder that
the Company may have acquired in any manner whatsoever, and may deliver to the Trustee for
cancellation any Securities previously authenticated hereunder which the Company has not issued and
sold. The Trustee shall cancel and dispose of all Securities surrendered for registration of
transfer, exchange, payment, purchase, repurchase, conversion (pursuant to Article 6 hereof) or
cancellation in accordance with its customary practices. If the Company shall acquire any of the
Securities, such acquisition shall not operate as a redemption or satisfaction of the indebtedness
represented by such Securities unless and until the same are delivered to the Trustee for
cancellation. The Company may not issue new Securities to replace Securities it has paid in full
or delivered to the Trustee for cancellation.

38

 

     (a) Transfers to QIBs. The following provisions shall apply with respect to the registration
of any proposed transfer of a Security constituting a Restricted Security to a QIB:

     (i) the Security Registrar shall register the transfer if such transfer is being made
by a proposed transferor who has checked the box provided for on the form of Security
stating, or has otherwise advised the Company and the Security Registrar in writing, that
the sale has been made in compliance with the provisions of Rule 144A to a transferee who
has signed the certification provided for on the form of Security stating, or has
otherwise advised the Company and the Security Registrar in writing, that it is purchasing
the Security for its own account or an account with respect to which it exercises sole
investment discretion and that it and any such account is a QIB within the meaning of Rule
144A, and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as it has
requested pursuant to Rule 144A or has determined not to request such information and that
it is aware that the transferor is relying upon its foregoing representations in order to
claim the exemption from registration provided by Rule 144A; and

     (ii) if the proposed transferee is an Agent Member, and the Securities to be
transferred consist of Physical Securities which after transfer are to be evidenced by an
interest in the Global Security, upon receipt by the Security Registrar of instructions
given in accordance with the Depositary’s and the Security Registrar’s procedures, the
Security Registrar shall reflect on its books and records the date and an increase in the
Principal Amount of the Global Security in an amount equal to the Principal Amount of the
Physical Securities to be transferred, and the Trustee shall cancel the Physical
Securities so transferred.

     (b) Private Placement Legend. Upon the registration of transfer, exchange or replacement of
Securities not bearing the legends required by Section 2.02 and 2.05, the Security Registrar shall
deliver Securities that do not bear such legends. Except in the case of a registration of
transfer, exchange or replacement contemplated by the Registration Rights Agreement, upon the
registration of transfer, exchange or replacement of Securities bearing the legends required by
Section 2.02 and 2.05, the Security Registrar shall deliver only Securities that bear such legends
unless there is delivered to the Security Registrar an Opinion of Counsel reasonably satisfactory
to the Company and the Trustee to the effect that neither such legend nor the related restrictions
on transfer are required in order to maintain compliance with the provisions of the Securities Act.

     (c) General. By its acceptance of any Security bearing the legends required by Section 2.02
and 2.05, each Holder of such a Security acknowledges

39

 

the restrictions on transfer of such Security set forth in this Indenture and in such legends
and agrees that it will transfer such Security only as provided in this Indenture.

     The Security Registrar shall retain, in accordance with its customary procedures, copies of
all letters, notices and other written communications received pursuant to this Section 3.10. The
Company shall have the right to inspect and make copies of all such letters, notices or other
written communications at any reasonable time upon the giving of reasonable written notice to the
Security Registrar.

     Section 3.11 . CUSIP Numbers. In issuing the Securities, the Company may use “CUSIP” numbers
(if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of
redemption as a convenience to Holders; provided that any such notice may state that no
representation is made as to the correctness of such numbers either as printed on the Securities or
as contained in any notice of a redemption and that reliance may be placed only on the other
identification numbers printed on the Securities, and any such redemption shall not be affected by
any defect in or omission of such numbers. The Company will promptly notify the Trustee of any
change in the “CUSIP” numbers.

ARTICLE 4

Particular Covenants of the Company

     Section 4.01 . Payment of Principal and Interest. The Company covenants and agrees that it
shall duly and punctually pay or cause to be paid the principal of, and interest on, each of the
Securities at the places, at the respective times and in the manner provided herein and in the
Securities.

     Section 4.02 . Maintenance of Office or Agency. The Company shall maintain an office or
agency in the Borough of Manhattan, the City of New York, where the Securities may be surrendered
for registration of transfer or exchange or for presentation for payment or for conversion and
where notices and demands to or upon the Company in respect of the Securities 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, and the Company hereby appoints the
Trustee as its agent to receive all such presentations, surrenders, notices and demands.

40

 

     The Company may also from time to time designate co-registrars and one or more offices or
agencies where the Securities may be presented or surrendered for any or all such purposes and may
from time to time rescind such designations.

     The Company will give prompt written notice of any such designation or rescission and of any
change in the location of any such other office or agency.

     The Company hereby initially designates the Trustee as paying agent, Security Registrar,
Custodian and conversion agent at the Corporate Trust Office.

     So long as the Trustee is the Security Registrar, the Trustee agrees to mail, or cause to be
mailed, the notices set forth in Section 10.11(a) and the third paragraph of
Section 10.12. If co-registrars have been appointed in accordance with this
Section, the Trustee shall mail such notices only to the Company and the Holders of Securities it
can identify from its records.

     Section 4.03 . Provisions as to Paying Agent.

     (a) If the Company shall appoint a Paying Agent other than the Trustee, or if the Trustee
shall appoint such a Paying Agent, the Company will cause such Paying Agent to execute and deliver
to the Trustee an instrument in which such agent shall agree with the Trustee, subject to the
provisions of this Section 4.03:

     (i) that it will hold all sums held by it as such agent for the payment of the
principal of or interest, including Additional Interest, if any, on the Securities
(whether such sums have been paid to it by the Company or by any other obligor on the
Securities) in trust for the benefit of the Holders of the Securities;

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

     (iii) that at any time during the continuance of an Event of Default, upon request of
the Trustee, it will forthwith pay to the Trustee all sums so held in trust.

     The Company shall, on or before each due date of the principal of or interest, including
Additional Interest, if any, on the Securities, deposit with the paying agent a sum (in funds which
are immediately available on the due date for such payment) sufficient to pay such principal or
interest, and (unless such paying agent is the Trustee) the Company will promptly notify the
Trustee of any failure to take such action; provided, however, that if such deposit is made on the
due

41

 

date, such deposit shall be received by the paying agent by 11:00 a.m. New York City time, on
such date.

     (b) If the Company shall act as its own Paying Agent, it will, on or before each due date of
the principal of or interest on the Securities, set aside, segregate and hold in trust for the
benefit of the Holders of the Securities a sum sufficient to pay such principal or interest,
including Additional Interest, if any, so becoming due and will promptly notify the Trustee of any
failure to take such action and of any failure by the Company (or any other obligor under the
Securities) to make any payment of the principal of or interest, including Additional Interest, if
any, on the Securities when the same shall become due and payable.

     (c) Anything in this Section 4.03 to the contrary notwithstanding, the Company may, at any
time, for the purpose of obtaining a satisfaction and discharge of this Indenture, or for any other
reason, pay or cause to be paid to the Trustee all sums held in trust by the Company or any paying
agent hereunder as required by this Section 4.03, such sums to be held by the Trustee upon the
trusts herein contained and upon such payment by the Company or any paying agent to the Trustee,
the Company or such paying agent shall be released from all further liability with respect to such
sums.

     (d) Anything in this Section 4.03 to the contrary notwithstanding, the agreement to hold sums
in trust as provided in this Section 4.03 is subject to Section 12.03 and Section 12.04.

     The Trustee shall not be responsible for the actions of any other paying agents (including the
Company if acting as its own paying agent) and shall have no control of any funds held by such
other paying agents.

     Section 4.04 . Rule 144A Information Requirement. Within the period prior to the expiration
of the holding period applicable to sales thereof under Rule 144(k) under the Securities Act (or
any successor provision), the Company covenants and agrees that it shall, during any period in
which it is not subject to Section 13 or 15(d) under the Exchange Act, make available to any Holder
or beneficial holder of Securities or any Common Stock issued upon conversion thereof which
continue to be Restricted Securities in connection with any sale thereof and any prospective
purchaser of Securities or such Common Stock designated by such Holder or beneficial holder, the
information required pursuant to Rule 144A(d)(4) under the Securities Act upon the request of any
Holder or beneficial holder of the Securities or such Common Stock, all to the extent required from
time to time to enable such Holder or beneficial holder to sell its Securities or Common Stock
without registration under the Securities Act within the limitation of the exemption provided by
Rule 144A, as such rule may be amended from time to time.

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     Section 4.05 . Resale of Certain Securities. During the period beginning on the date of
issuance of the Securities and ending on the date that is two years thereafter, the Company shall
not, and shall not permit any of its “affiliates” within its “control” (each as defined under Rule
144 under the Securities Act or any successor provision thereto) to, resell any Securities which
constitute “restricted securities” under Rule 144 that have been reacquired by any of them. The
Trustee shall have no responsibility in respect of the Company’s performance of its agreement in
the preceding sentence.

     Section 4.06 . Commission Filings. The Company will deliver to the Trustee within 15 days
after the actual filing of the same with the Commission, copies of the quarterly and annual reports
and of the information, documents and other reports, if any, which the Company is required to file,
and only to the extent it is required to file, with the Commission pursuant to Section 13 or 15(d)
of the Exchange Act, and shall otherwise comply with the requirements of § 314(a) of the Trust
Indenture Act. To the extent any such information, documents and reports are filed by the Company
electronically on the Commission’s Electronic Data Gathering and Retrieval System (or any successor
system), notice thereof shall be delivered promptly to the Trustee, upon which such information,
documents and reports shall be deemed delivered to the Trustee.

     Section 4.07 . Book-Entry System. If the Securities cease to trade in the Depositary’s
book-entry settlement system, the Company covenants and agrees that it shall use reasonable efforts
to make such other book entry arrangements that it determines are reasonable for the Securities.

     Section 4.08 . Additional Interest under the Registration Rights Agreement. If at any time
Additional Interest become payable by the Company pursuant to the Registration Rights Agreement,
the Company shall promptly deliver to the Trustee a certificate to that effect and stating (i) the
amount of such Additional Interest that is payable and (ii) the date on which such Additional
Interest is payable pursuant to the terms of the Registration Rights Agreement. Unless and until a
Responsible Officer of the Trustee receives such a certificate, the Trustee may assume without
inquiry that no Additional Interest is payable. If the Company has paid Additional Interest
directly to the Persons entitled to such Additional Interest, the Company shall deliver to the
Trustee a certificate setting forth the particulars of such payment.

     Section 4.09 . Compliance Certificate. The Company shall deliver to the Trustee, within 120
days after the end of each fiscal year of the Company, an Officer’s Certificate, stating whether or
not to the knowledge of the signer thereof the Company is in default in the performance and
observance of any of the terms, provisions, covenants and conditions of this Indenture (without
regard to any period of grace or requirement of notice provided hereunder) or has been in default
during the previous year and, if the Company shall be in default, or shall

43

 

have been in default during the previous year, specifying all such defaults and the nature and
the status thereof of which the signer may have knowledge.

     The Company shall deliver to the Trustee, as soon as possible and in any event within 30 days
after the Company becomes aware of the occurrence of any Event of Default or an event which, with
notice or the lapse of time or both, would constitute an Event of Default, an Officers’ Certificate
setting forth the details of such Event of Default or Default, its status and the action which the
Company proposes to take with respect thereto.

     Any notice required to be given under this Section 4.09 shall be delivered to a Responsible
Officer of the Trustee at its Corporate Trust Office.

ARTICLE 5

Fundamental Changes and Purchases Thereupon

     Section 5.01 . Purchase at Option of Holders Upon a Fundamental Change.

     (a) Generally. If a Fundamental Change occurs at any time prior to the Maturity of the
Securities, then each Securityholder shall have the right, at such Holder’s option, to require the
Company to purchase for cash any or all of such Holder’s Securities, or any portion of the
Principal Amount thereof, that is a multiple of $1,000 Principal Amount, on a date specified by the
Company that is no later than the 35th calendar day following the date of the
Fundamental Change Company Notice (as defined below) (the “Fundamental Change Purchase Date”), at a
purchase price equal to 100% of the Principal Amount thereof, together with accrued and unpaid
interest thereon, including Additional Interest, if any, to, but excluding, the Fundamental Change
Purchase Date (the “Fundamental Change Purchase Price”); provided, however, that if a Fundamental
Change Purchase Date is between a Record Date and the Interest Payment Date related thereto, the
interest, including Additional Interest, if any, payable in respect of such Interest Payment Date
shall be payable to the Holders of record as of the corresponding Record Date.

     Purchases of Securities under this Section 5.01 shall be made, at the option of the Holder
thereof, upon:

     (i) delivery to the Trustee (or other Paying Agent appointed by the Company) by a
Holder, prior to the close of business on the Business Day immediately preceding the
Fundamental Change Purchase Date, subject to extension to comply with applicable law, of a
duly completed notice (the “Fundamental Change Purchase Notice”) in the form set forth on
the reverse of the Securities or otherwise specifying:

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     (A) if certificated, the certificate numbers of Securities to be delivered
for purchase;

     (B) the portion of the Principal Amount of Securities to be purchased,
which must be $1,000 or a multiple thereof; and

     (C) that the Securities are to be purchased by the Company pursuant to the
applicable provisions of the Securities and the Indenture; and

     (ii) delivery or book-entry transfer of the Securities to the Trustee (or other
Paying Agent appointed by the Company) (together with all necessary endorsements) at any
time prior to the close of business on the Business Day immediately preceding the
Fundamental Change Purchase Date, subject to extension to comply with applicable law, at
the applicable 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 Purchase Price therefor; provided that such Fundamental Change Purchase Price shall
be so paid pursuant to this Section 5.01 only if the Securities 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 Purchase Notice.

     Any purchase by the Company contemplated pursuant to the provisions of this Section 5.01 shall
be consummated by the delivery of the consideration to be received by the Holder promptly following
the later of the Fundamental Change Purchase Date and the time of the book-entry transfer or
delivery of the Securities.

     Notwithstanding anything herein to the contrary, any Holder delivering to the Trustee (or
other Paying Agent appointed by the Company) the Fundamental Change Purchase Notice contemplated by
this Section 5.01 shall have the right to withdraw such Fundamental Change Purchase Notice at any
time prior to the close of business on the Business Day immediate preceding the Fundamental Change
Purchase Date by delivery of a written notice of withdrawal to the Trustee (or other Paying Agent
appointed by the Company) in accordance with Section 5.03 below.

     The Company will not be required to make an offer to purchase the Securities upon a
Fundamental Change if a third party makes the offer in the manner, at the times, and otherwise in
compliance with the requirements set forth in this Article 5 applicable to an offer by the Company
to purchase the Securities upon a Fundamental Change and such third party purchases all Securities
validly tendered and not withdrawn upon such offer.

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     The Trustee (or other Paying Agent appointed by the Company) shall promptly notify the Company
of the receipt by it of any Fundamental Change Purchase Notice or written notice of withdrawal
thereof.

     (b) Fundamental Change Company Notice. On or before the 20th day after the
occurrence of a Fundamental Change, the Company shall provide to all Holders of record of the
Securities and the Trustee and Paying Agent a notice (the “Fundamental Change Company Notice”) of
the occurrence of such Fundamental Change and of the purchase right at the option of the Holders
arising as a result thereof. Such mailing shall be by first class mail. Simultaneously with
providing such Fundamental Change Company Notice, the Company shall publish a notice containing the
information included therein once in a newspaper of general circulation in The City of New York or
publish such information on the Company’s website or through such other public medium as the
Company may use at such time.

     Each Fundamental Change Company Notice shall specify:

     (i) the events causing a Fundamental Change;

     (ii)the date of the Fundamental Change;

     (iii) the Fundamental Change Purchase Price;

     (iv) the Fundamental Change Purchase Date;

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

     (vi) if applicable, the applicable Conversion Rate and any adjustments to the
applicable Conversion Rate;

     (vii) if applicable, that the Securities with respect to which a Fundamental Change
Purchase Notice has been delivered by a Holder may be converted only if the Holder
withdraws the Fundamental Change Purchase Notice in accordance with Section 5.03; and

     (viii) the procedures that Holders must follow to require the Company to purchase
their Securities.

     No failure of the Company to give the foregoing notices and no defect therein shall limit the
Securityholders’ purchase rights or affect the validity of the proceedings for the purchase of the
Securities pursuant to this Section 5.01.

     (c) No Payment During Events of Default. There shall be no purchase of any Securities
pursuant to this Section 5.01 if there has occurred (prior to, on or

46

 

after, as the case may be, the giving, by the Holders of such Securities, of the required
Fundamental Change Purchase Notice) and is continuing an Event of Default (other than a default
that is cured by the payment of the Fundamental Change Purchase Price of the Securities). The
Paying Agent will promptly return to the respective Holders thereof any Securities (i) with respect
to which a Fundamental Change Purchase Notice has been withdrawn in compliance with this Indenture,
or (ii) held by it during the continuance of an Event of Default (other than a default that is
cured by the payment of the Fundamental Change Purchase Price with respect to such Securities) in
which case, upon such return, the Fundamental Change Purchase Notice with respect thereto shall be
deemed to have been withdrawn.

     (d) Payment of Fundamental Change Purchase Price. The Securities to be purchased pursuant to
this Section 5.01 shall be paid for in cash.

     Section 5.02 . Effect of Fundamental Change Purchase Notice. Upon receipt by the Paying
Agent of the Fundamental Change Purchase Notice specified in Section 5.01(a), the Holder of the
Security in respect of which such Fundamental Change Purchase Notice was given shall (unless such
Fundamental Change Purchase Notice is withdrawn as specified in the following two paragraphs)
thereafter be entitled to receive solely the Fundamental Change Purchase Price with respect to such
Security. Such Fundamental Change Purchase Price shall be paid to such Holder, subject to receipt
of funds by the Paying Agent, promptly following the later of (x) the Fundamental Change Purchase
Date with respect to such Security (provided the conditions in Section 5.01(a) have been satisfied)
and (y) the time of delivery of such Security to the Paying Agent by the Holder thereof in the
manner required by Section 5.01(b).

     Section 5.03 . Withdrawal of Fundamental Change Purchase Notice.

     (a) A Fundamental Change Purchase Notice may be withdrawn by means of a written notice of
withdrawal delivered to the Paying Agent in accordance with the Fundamental Change Company Notice
at any time prior to the close of business on the Business Day immediately preceding the
Fundamental Change Purchase Date, specifying:

     (i) the Principal Amount of the Securities with respect to which such notice of
withdrawal is being submitted;

     (ii) if Physical Securities have been issued, the certificate numbers of the
withdrawn Securities; and

     (iii) the Principal Amount of such Securities that remains subject to the original
Fundamental Change Purchase Notice, which portion must be in Principal Amounts of $1,000
or a multiple of $1,000;

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provided, however, that if the Securities are not in certificated form, the notice must comply with
appropriate procedures of the Depositary.

     Section 5.04 . Deposit of Fundamental Change Purchase Price. Prior to 10:00 a.m. (local time
in The City of New York) on the Fundamental Change Purchase Date, subject to extension to comply
with applicable law, the Company shall deposit with the Trustee or with the Paying Agent (or, if
the Company or a Subsidiary or an Affiliate of either of them is acting as the Paying Agent, shall
segregate and hold in trust as provided herein) an amount of money (in immediately available funds
if deposited on such Business Day) sufficient to pay the Fundamental Change Purchase Price, of all
the Securities or portions thereof that are to be purchased as of the Fundamental Change Purchase
Date. The Company shall promptly notify the Trustee in writing of the amount of any deposits of
cash made pursuant to this Section 5.04. If the Paying Agent holds cash sufficient to pay the
Fundamental Change Purchase Price of any Security for which a Fundamental Change Purchase Notice
has been tendered and not withdrawn in accordance with this Indenture as of the close of business
on the Fundamental Change Purchase Date, then immediately following the Fundamental Change Purchase
Date, (a) such Security will cease to be outstanding and interest, including Additional Interest,
if any, will cease to accrue thereon (whether or not book-entry transfer of such Security is made
or such Security is delivered to the Paying Agent) and (b) all other rights of the Holder in
respect thereof will terminate (other than the right to receive the Fundamental Change Purchase
Price and previously accrued and unpaid interest, including Additional Interest, if any, upon
delivery or book-entry transfer of such Security).

     Section 5.05 . Securities Purchased in Whole or in Part. Any Security that is to be
purchased, whether in whole or in part, shall be surrendered at the office of the Paying Agent
(with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of
transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof
or such Holder’s attorney duly authorized in writing) and the Company shall execute and the Trustee
shall authenticate and deliver to the Holder of such Security, without service charge, a new
Security or Securities, of any authorized denomination as requested by such Holder in aggregate
Principal Amount equal to, and in exchange for, the portion of the Principal Amount of the Security
so surrendered which is not purchased.

     Section 5.06 . Covenant to Comply With Securities Laws Upon Purchase of Securities. In
connection with any offer to purchase Securities under Section 5.01 (provided that such offer or
purchase constitutes an “issuer tender offer” for purposes of Rule 13e-4 (which term, as used
herein, includes any successor provision thereto) under the Exchange Act at the time of such offer
or purchase), the Company shall (i) comply with Rule 13e-4 and Rule 14e-1
under the Exchange Act, (ii) file the related Schedule TO (or any successor
schedule, form

48

 

or report) under the Exchange Act, and (iii) otherwise comply with all
Federal and state securities laws so as to permit the rights and obligations under Section 5.01 to
be exercised in the time and in the manner specified in Section 5.01.

     Section 5.07 . Repayment to the Company. The Trustee and the Paying Agent shall return to
the Company any cash that remains unclaimed, together with interest, including Additional Interest,
if any, or dividends, if any, thereon, held by them for the payment of the Fundamental Change
Purchase Price; provided that to the extent that the aggregate amount of cash deposited by the
Company pursuant to Section 5.04 exceeds the aggregate Fundamental Change Purchase Price of the
Securities or portions thereof which the Company is obligated to purchase as of the Fundamental
Change Purchase Date, then as soon as practicable following the Fundamental Change Purchase Date,
the Trustee or the Paying Agent, as the case may be, shall return any such excess to the Company.

ARTICLE 6

Conversion

     Section 6.01 . Right to Convert.

     (a) Subject to and upon compliance with the provisions of this Indenture, each Holder shall
have the right, at such Holder’s option, to convert the Principal Amount of any such Securities, or
any portion of such Principal Amount which is $1,000 or a multiple of $1,000 thereof at the
Conversion Rate then in effect, (x) on or after July 1, 2011 through the close of business on the
third Business Day immediately preceding Stated Maturity and (y) prior to
July 1, 2011, but only upon the satisfaction of any of the following conditions and only
during the periods set forth below:

     (i) A Holder may surrender all or a portion of its Securities for conversion during
any fiscal quarter (and only during such fiscal quarter) commencing after December 31,
2006, if the Last Reported Sale Price for the Common Stock for at least 20 Trading Days
during the period of 30 consecutive Trading Days ending on the last Trading Day of the
immediately preceding fiscal quarter is greater than or equal to 120% of the Conversion
Price in effect on such last Trading Day.

     (ii) A Holder may surrender its Securities for conversion during the five Business
Day period after any 10 consecutive Trading Day period (the “Measurement Period”) in which
the Trading Price per $1,000 Principal Amount of Securities, as determined following a
request by a Holder in accordance with the procedures set forth in this Section
6.01(a)(ii), for each day of such period was less than 98% of the product of the Last
Reported Sale Price of the Common Stock and the applicable

49

 

Conversion Rate. In connection with any conversion in accordance with this Section
6.01(a)(ii), the Bid Solicitation Agent shall have no obligation to determine the Trading
Price of the Securities unless requested by the Company; and the Company shall have no
obligation to make such request unless a Holder provides the Company with reasonable
evidence that the Trading Price per $1,000 Principal Amount of Securities would be less
than 98% of the product of the Last Reported Sale Price of the Common Stock and the
applicable Conversion Rate. Promptly after receiving such evidence, the Company shall
instruct the Bid Solicitation Agent to determine the Trading Price of the Securities
beginning on the next Trading Day and on each successive Trading Day until the Trading
Price per $1,000 Principal Amount of Securities is greater than or equal to 98% of the
product of the Last Reported Sale Price of the Common Stock and the applicable Conversion
Rate. If the Company does not so instruct the Bid Solicitation Agent to obtain bids when
required, the Trading Price per $1,000 Principal Amount of Securities will be deemed to be
less than 98% of the product of the last reported sale price on each day the Company fails
to do so.

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

     (A) issue to all or substantially all holders of Common Stock rights
entitling them to purchase, for a period expiring within 60 days after the date
of the distribution, shares of Common Stock at less than the average of the Last
Reported Sale Prices of a share of Common Stock for the 10 consecutive
Trading-Day period ending on the Business Day preceding the announcement of such
issuance; or

     (B) distribute to all or substantially all holders of Common Stock assets,
debt securities or rights to purchase securities of the Company, which
distribution has a per share Fair Market Value, as reasonably determined by the
Company’s Board of Directors, exceeding 10% of the Last Reported Sale Price of
the Common Stock on the Business Day preceding the declaration date for such
distribution,

then, in each case, the Company shall notify the Holders, in the manner provided in
Section 1.06, at least 40 Scheduled Trading Days prior to the Ex-Date for such
distribution. Once the Company has given such notice, Holders may surrender Securities for
conversion at any time until the earlier of 5:00 p.m., New York City time, on the Business
Day immediately prior to such Ex-Date or the Company’s announcement that such distribution
will not take place, even if the Notes are not otherwise convertible at such time.
Notwithstanding the foregoing, a Holder may

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not exercise the right to convert if such Holder may participate in the issuance or
distribution without conversion (based on the Conversion Rate then in effect).

     (iv) (A) If the Company is party to a transaction described in clause (2) of the
definition of Fundamental Change (without, for the avoidance of doubt, giving effect to
the exception in the last paragraph of the definition thereof relating to Publicly Traded
Securities), the Company shall notify Holders, in the manner provided in Section 1.06, at
least 40 Scheduled Trading Days prior to the anticipated effective date for such
transaction. Once the Company has given such notice, Holders may surrender Securities for
conversion at any time until 30 calendar days after the actual effective date of such
transaction (or, if such transaction also constitutes a Fundamental Change, the related
Fundamental Change Purchase Date).

(B) In addition, if a Fundamental Change of the type described in clause (1) in the
definition thereof occurs, Holders may surrender Securities for conversion at any time
beginning on the actual effective date of such Fundamental Change until and including the
date that is 30 calendar days after the actual effective date of such transaction or, if
later, until the related Fundamental Change Purchase Date.

     (b) Notwithstanding the foregoing, a Security in respect of which a Holder has delivered a
Fundamental Change Purchase Notice exercising such Holder’s option to require the Company to
purchase such Security may be converted only if such notice of exercise is withdrawn in accordance
with Article 5 hereof prior to the close of business on the Fundamental Change Purchase Date.

     Section 6.02 . Conversion Procedure.

     (a) Each Security shall be convertible at the office of the Conversion Agent.

     (b) In order to exercise the conversion privilege with respect to any interest in a Global
Security, the Holder must complete the appropriate instruction form for conversion pursuant to the
Depositary’s book-entry conversion program, furnish appropriate endorsements and transfer documents
if required by the Company or the Trustee or Conversion Agent, and pay the funds, if any, required
by Section 6.03(d) and any transfer taxes if required pursuant to Section 6.07 and the Trustee or Conversion Agent must be informed of the conversion in accordance with
customary practice of the Depositary. In order to exercise the conversion privilege with respect
to any Securities in certificated form that are not Global Securities, the Holder of any such
Securities to be converted, in whole or in part, shall:

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     (i) complete and manually sign the conversion notice provided on the back of the
Security (the “Conversion Notice”) or facsimile of the conversion notice and deliver such
notice to a Conversion Agent;

     (ii) surrender the Security to a Conversion Agent;

     (iii) if required, furnish appropriate endorsements and transfer documents,

     (iv) make any payment required under Section 6.03(d); and

     (v) if required, pay any transfer or similar tax.

     The date on which the Holder satisfies all of the applicable requirements set forth above is
the “Conversion Date.” The Trustee will, as promptly as possible, and in any event within two (2)
Business Days, provide the Company with notice of any conversion exercises by Holders of which a
Responsible Officer becomes aware.

     (c) Each Conversion Notice shall state the name or names (with address or addresses) in which
any certificate or certificates for shares of Common Stock which shall be issuable on such
conversion shall be issued. All such Securities surrendered for conversion shall, unless the
shares issuable on conversion are to be issued in the same name as the registration of such
Securities, be duly endorsed by, or be accompanied by instruments of transfer in form satisfactory
to the Company duly executed by, the Holder or his duly authorized attorney.

     (d) On the third Business Day immediately following the last day of the Observation Period,
subject to compliance with any restrictions on transfer if shares issuable on conversion are to be
issued in a name other than that of the Holder (as if such transfer were a transfer of the
Securities (or portion thereof) so converted), the Company shall issue and shall deliver to such
Holder at the office of the Conversion Agent, a check or cash and a certificate or certificates for
the number of full shares of Common Stock issuable in accordance with the provisions of this
Article 6, if applicable. In case any Securities of a denomination greater than $1,000 shall be
surrendered for partial conversion, the Company shall execute and the Trustee shall authenticate
and deliver to the Holder of the Securities so surrendered, without charge to him, new Securities
in authorized denominations in an aggregate Principal Amount equal to the unconverted portion of
the surrendered Securities.

     Each conversion shall be deemed to have been effected as to any such Securities (or portion
thereof) on the date on which the requirements set forth above in this Section 6.02 have been
satisfied as to such Securities (or portion thereof), and the person in whose name any certificate
or certificates for shares of

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Common Stock shall be issuable upon such conversion shall be deemed to have become on said
date the Holder of record of the shares represented thereby; provided, however, that in case of any
such surrender on any date when the stock transfer books of the Company shall be closed, the person
or persons in whose name the certificate or certificates for such shares are to be issued shall be
deemed to have become the record Holder thereof for all purposes on the next day on which such
stock transfer books are open, but such conversion shall be at the Conversion Price in effect on
the date upon which such Securities shall be surrendered.

     (e) Upon the conversion of an interest in Global Securities, the Trustee (or other Conversion
Agent appointed by the Company) shall make a notation on such Global Securities as to the reduction
in the Principal Amount represented thereby. The Company shall notify the Trustee in writing of any
conversions of Securities effected through any Conversion Agent other than the Trustee.

     (f) Each stock certificate representing Common Stock issued upon conversion of the Securities
that are Restricted Securities shall bear the legend in substantially the form of Exhibit B
hereto.

     Section 6.03 . Payments Upon Conversion.

     (a) Upon any conversion of any Security, the Company shall deliver to converting Holders, in
respect of each $1,000 Principal Amount of Securities being converted, a “Settlement Amount” equal
to the sum of the Daily Settlement Amounts for each of the 30 Trading Days during the applicable
Observation Period for such Security.

     (b) The “Daily Settlement Amount” for each of the 30 Trading Days during the Observation
Period shall consist of:

     (i) cash equal to the lesser of (x) one-thirtieth of $1,000 and (y) the Daily
Conversion Value, and

     (ii) to the extent the Daily Conversion Value exceeds one-thirtieth of $1,000, a
number of shares of Common Stock equal to (x) the difference between the Daily Conversion
Value and one-thirtieth of $1,000, divided by (y) the Daily VWAP for such day;

     (c) Subject to clause (d) and (e) below, upon conversion, Holders shall not receive any
separate cash payment for accrued and unpaid interest, including Additional Interest, if any,
unless such conversion occurs between a Record Date and the Interest Payment Date to which it
relates.

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     (d) If Securities are converted after 5:00 p.m., New York City time, on a Record Date for the
payment of interest, Holders of such Securities at 5:00 p.m., New York City time, on such Record
Date will receive the interest and Additional Interest, if any, payable on such Securities on the
corresponding Interest Payment Date notwithstanding the conversion. Securities surrendered for
conversion during the period from 5:00 p.m., New York City time, on any Record Date to 9:00 a.m.,
New York City time, on the immediately following Interest Payment Date, must be accompanied by
funds equal to the amount of interest and Additional Interest, if any, payable on the Securities so
converted; provided that no such payment need be made (i) if the Company has specified a
Fundamental Change Purchase Date that is after a Record Date and on or prior to the corresponding
Interest Payment Date; (ii) for conversions on or following the 35th Scheduled Trading
Day prior to Stated Maturity or (iii) to the extent of any overdue interest, if any overdue
interest exists at the time of conversion with respect to such Security.

     (e) If a Holder converts some or all of its Securities into Common Stock when there exists a
Registration Default with respect to the Common Stock, the Holder will not be entitled to receive
Additional Interest on such Common Stock. Such Holder will receive, on the third Business Day
following the last day of the related Observation Period, all accrued and unpaid Additional
Interest to the Conversion Date.

     (f) The Company shall not issue fractional shares of Common Stock upon conversion of
Securities. If multiple Securities shall be surrendered for conversion at one time by the same
Holder, the number of full shares which shall be issuable upon conversion shall be computed on the
basis of the aggregate Principal Amount of the Securities (or specified portions thereof to the
extent permitted hereby) so surrendered. If any fractional share of stock would be issuable upon
the conversion of any Securities, the Company shall make payment therefor in cash in lieu of
fractional shares of Common Stock based on the Daily VWAP of the Company’s Common Stock on the
final Trading Day of the applicable Observation Period.

     (g) For purposes of this Section 6.03, and notwithstanding the definitions contained in
Section 1.01, “Trading Day” means a day on which (i) there is no Market Disruption Event and (ii)
trading in securities generally occurs on the Nasdaq Global Select Market or, if the Company’s
Common Stock is not then listed on the Nasdaq Global Select Market, on the principal other United
States national or regional securities exchange on which the Company’s Common Stock is then listed
or, if the Company’s Common Stock is not then listed on a United States national or regional
securities exchange, on the principal other market on which the Company’s Common Stock is then
traded. If the Company’s Common Stock (or other security for which a Daily VWAP must be
determined) is not so listed or quoted, “Trading Day” means a Business Day.

54

 

     Section 6.04 . Adjustment of Conversion Rate. The Conversion Rate shall be adjusted from
time to time by the Company if any of the following events occurs, except that the Company will not
make any adjustment if Holders of Securities participate, as a result of holding the Securities, in
the transactions described without having to convert their Securities.

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

	 	 	 	 	 
	CR'	 	=
	 	CR0
× OS'

     OS0

     where

	 	 	 	 	 	 	 
	 

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

	 	CR'
	 	=
	 	the Conversion Rate in effect immediately after such Ex-Date or effective
date;
	 
	 	 	 	 	 	 
	 

	 	OS0
	 	=
	 	the number of shares of Common Stock outstanding immediately prior to
such Ex-Date or effective date; and
	 
	 	 	 	 	 	 
	 

	 	OS'
	 	=
	 	the number of shares of Common Stock outstanding immediately after such
Ex-Date or effective date.

Such adjustment shall become effective immediately after the opening of business on the day
following the record date for such dividend or distribution, or the date fixed for determination
for such share split or share combination. If any dividend or distribution of the type described
in this Section 6.04(a) is declared but not so paid or made, the Conversion Rate shall again be
adjusted to the Conversion Rate which would then be in effect if such dividend or distribution had
not been declared.

     (b) If the Company, at any time or from time to time while any of the Securities are
outstanding, issues to all or substantially all holders of its outstanding shares of Common Stock
any rights or warrants entitling them for a period of not more than 60 calendar days to subscribe
for or purchase shares of Common Stock at a price per share less than the average of the Last
Reported Sale Prices of Common Stock for the 10 consecutive Trading Day period ending

55

 

on the
Business Day immediately preceding the date of announcement of such issuance, the Conversion Rate
shall be adjusted based on the following formula:

	 	 	 	 	 
	CR'	 	=   CR0   ×   
	 	OS0 + X

OS0 + Y

     where

	 	 	 	 	 	 	 
	 

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

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

	 	OS0
	 	=
	 	the number of shares of Common Stock outstanding immediately after such
Ex-Date;
	 
	 	 	 	 	 	 
	 

	 	X
	 	=
	 	the total number of shares of Common Stock issuable pursuant to such
rights; and
	 
	 	 	 	 	 	 
	 

	 	Y
	 	=
	 	the number of shares of Common Stock equal to the aggregate price payable
to exercise such rights divided by the average of the Last Reported Sale Prices of
Common Stock for the 10 consecutive Trading Day period ending on the Business Day
immediately preceding the date of announcement of the issuance of such rights.

     To the extent such rights or warrants are not exercised prior to their expiration or
termination, the Conversion Rate shall be readjusted to the Conversion Rate which would then be in
effect had the adjustments made upon the issuance of such rights or warrants been made on the basis
of the delivery of only the number of shares of Common Stock actually delivered. In the event that
such rights or warrants are not so issued, the Conversion Rate shall again be adjusted to be the
Conversion Rate which would then be in effect if the date fixed for the determination of
stockholders entitled to receive such rights or warrants 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 the average of the Last Reported Sale Prices of Common Stock for the 10
consecutive Trading Day period ending on the Business Day immediately preceding the date of
announcement of such issuance, and in determining the aggregate offering price of such shares of
Common Stock, there shall be taken into account any consideration received for such rights or
warrants and the value of such consideration, if other than cash, as shall be determined in good
faith by the Board of Directors of the Company.

56

 

For the purposes of this Section 6.04(b), rights or warrants distributed by the Company to all holders of its Common Stock entitling them to subscribe for or purchase shares of the Company’s capital stock (either initially or under certain circumstances), which rights or warrants, until the occurrence of a specified event or events (a “Trigger Event”): (1) are deemed to be
transferred with such shares of Common Stock;
 (2) are not exercisable; and (3) are also issued in respect of future issuances of Common Stock, shall be deemed not to have
been distributed for purposes of this Section 6.04(b), (and no adjustment to the Conversion Rate under this Section 6.04(b)
will be required) until the occurrence of the earliest Trigger Event, whereupon such rights and warrants shall be deemed to have been
distributed and an appropriate adjustment (if any is required) to the Conversion Rate shall be made under this Section 6.04(b). If
any such right or warrant, including any such existing rights or warrants distributed prior to the date of this Indenture, are subject
to events, upon the occurrence of which such rights or warrants become exercisable to purchase different securities, evidences of
Indebtedness or other assets, then the date of the occurrence of any and each such event shall be deemed to be the date of distribution
and 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 6.04(b) was made, (1) in the case of any such rights or warrants which shall all have been redeemed or purchased without exercise by any Holders thereof, the Conversion Rate shall be readjusted
upon such final purchase 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 purchase price received by a holder of Common Stock with respect to such rights
or warrants (assuming such holder had retained such rights or warrants), made to all applicable holders of Common Stock as of
 the date of such redemption or purchase, and (2) in the case of such rights or warrants which shall have expired or been
terminated without exercise by any holders thereof, the Conversion Rate shall be readjusted as if such rights and warrants had
not been issued.

     (c) If the Company, at any time or from time to time while the Securities are
outstanding, distributes shares of any class of Capital Stock of the Company, evidences of its
Indebtedness or other assets or property of the Company to all or substantially all holders of its
Common Stock, excluding:

     (i) dividends or distributions referred to in Section 6.04(a);

     (ii) rights or warrants referred to in Section 6.04(b); and

     (iii) dividends or distributions referred to in Section 6.04(d);

57

 

	 	 	 	 	 
	CR'	 	=   CR0   ×   
	 	      SP0      

SP0 – FMV

where

	 	 	 	 	 	 	 
	 

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

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

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

	 	FMV
	 	=
	 	the Fair Market Value (as determined by the Board of Directors of the
Company) of the shares of Capital Stock, evidences of Indebtedness, assets or
property distributed with respect to each outstanding share of the Common Stock on
the Record Date for such distribution.

     Such adjustment shall become effective immediately prior to the opening of business on the day
following the record date for such distribution. If the Board of Directors of the Company
determines the Fair Market Value of any distribution for purposes of this Section 6.04(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 average of the Last
Reported Sale Prices of the Common Stock.

     With respect to an adjustment pursuant to this Section 6.04(c) where there has been a payment
of a dividend or other distribution on the Common Stock of shares of Capital Stock of any class or
series, or similar equity interest, of or relating to a Subsidiary or other business unit (a
“Spin-Off”), the Conversion Rate in effect immediately before 5:00 p.m., New York City time, on the
effective date of the Spin-Off shall be increased based on the following formula:

	 	 	 	 	 
	CR'	 	=   CR0   ×   
	 	FMV0 + MP0

        MP0

where

58

 

	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to the effective date of
the adjustment;
	 
	 	 	 	 	 	 
	 

	 	CR'
	 	=
	 	the Conversion Rate in effect immediately after the effective date of the
adjustment;
	 
	 	 	 	 	 	 
	 

	 	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 ten
consecutive Trading Day period after the effective date of the spin-off;
and
	 
	 	 	 	 	 	 
	 

	 	MP0
	 	=
	 	the average of the Last Reported Sale Prices of Common Stock over the
first ten consecutive Trading Day period after the effective date of the spin-off.

     The adjustment to the Conversion Rate under the preceding paragraph will occur on the tenth
Trading Day from, and including, the effective date of the spin-off.

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

	 	 	 	 	 
	CR'	 	=   CR0   ×   
	 	    SP0    

SP0 – C

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 a share of Common Stock on the Trading
Day immediately preceding the Ex-Date for such distribution; and
	 
	 	 	 	 	 	 
	 

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

     (e) If the Company or any of its Subsidiaries makes a payment in respect of a tender offer or
exchange offer for 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 per share of

59

 

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:

	 	 	 	 	 
	CR'	 	=   CR0   ×   
	 	AC + (SP' × OS')

     OS0
× SP'

where

	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to the Effective Date of
the adjustment;
	 
	 	 	 	 	 	 
	 

	 	CR'
	 	=
	 	the Conversion Rate in effect immediately after the Effective Date of the
adjustment;
	 
	 	 	 	 	 	 
	 

	 	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; and
	 
	 	 	 	 	 	 
	 

	 	SP’
	 	=
	 	the average of the Last Reported Sale Prices of Common Stock over the 10
consecutive Trading Day period commencing on the Trading Day next succeeding the date
such tender or exchange offer expires.

The adjustment to the Conversion Rate under this Section 6.04(e) shall occur on the tenth Trading
Day from, and including, the Trading Day next succeeding the date such tender or exchange offer
expires.

     If the Company is obligated to purchase shares pursuant to any such tender or exchange offer,
but the Company is permanently prevented by applicable law from effecting any such purchases or all
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 had not been made.

     (f) As used in this Section 6.04, “Ex-Date” shall mean the first date on which the shares of
the Company’s Common Stock trade on the applicable

60

 

exchange or in the applicable market, regular
way, without the right to receive the issuance or distribution in question.

     (g) For purposes of this Section 6.04, “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 stockholders 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) The Company from time to time may increase the Conversion Rate by any amount for any
period of time if the period is at least 20 days, the increase is irrevocable during the period and
the Board of Directors shall have made a determination that such increase would be in the best
interests of the Company, which determination shall be conclusive. Whenever the Conversion Rate is
increased pursuant to this Section 6.04(h), the Company shall mail to Holders of record of the
Securities a notice of the increase at least 15 days prior to the date the increased Conversion
Rate takes effect, and such notice shall state the increased Conversion Rate and the period during
which it will be in effect.

     (i) The Company may make such increases in the Conversion Rate, in addition to any adjustments
required by Section 6.04(a), 6.04(b), 6.04(c), 6.04(d), 6.04(e) or 6.04(h), as the Board of
Directors considers to be advisable to avoid or diminish any income tax to holders of Common Stock
or rights to purchase Common Stock resulting from any dividend or distribution of stock (or rights
to acquire stock) or from any event treated as such for income tax purposes.

     (j) All calculations under this Article 6 shall be made by the Company and shall be made to
the nearest cent or to the nearest one-ten-thousandth of a share, as the case may be. No
adjustment shall be made for the Company’s issuance of Common Stock or convertible or exchangeable
securities or rights to purchase Common Stock or convertible or exchangeable securities, other than
as provided in this Section 6.04.

     (k) Whenever the Conversion Rate is adjusted as herein provided, the Company shall promptly
file with the Trustee and any Conversion Agent an Officers’ Certificate setting forth the
Conversion Rate after such adjustment and setting forth a brief statement of the facts requiring
such adjustment. Unless and until a Responsible Officer of the Trustee shall have received such
Officers’ Certificate, the Trustee shall not be deemed to have knowledge of any adjustment of the

61

 

Conversion Rate and may assume without inquiry that the last Conversion Rate of which it has
knowledge is still in effect. Promptly after delivery of such certificate, the Company shall
prepare a notice of such adjustment of the Conversion Rate setting forth the adjusted Conversion
Rate and the date on which each adjustment becomes effective and shall mail such notice of such
adjustment of the Conversion Rate to each Securityholder at such Holder’s last address appearing on
the list of Securityholders provided for in Section 3.06, within 20 days after execution thereof.
Failure to deliver such notice shall not affect the legality or validity of any such adjustment.

     (l) For purposes of this Section 6.04, the number of shares of Common Stock at any time
outstanding shall not include shares held in the treasury of the Company so long as the Company
does not pay any dividend or make any distribution on shares of Common Stock 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) No adjustment to the Conversion Rate shall be made pursuant to this Section 6.04 if the
Holders of the Securities may participate in the transaction (based on the Conversion Rate) that
would otherwise give rise to an adjustment pursuant to this Section 6.04 without having to convert
their Securities.

     (n) Notwithstanding the foregoing, if the application of the foregoing formulas would result
in a decrease in the Conversion Rate, no adjustment to the Conversion Rate shall be made.

     (o) The Company shall not undertake any action that would lead to an adjustment to the
Conversion Rate as described in this Section 6.04(a) through (e) or Sections 6.04(h) or 6.04(i) if,
as a result of such action, the Conversion Rate adjustment that would otherwise be made pursuant to
the provisions of Section
6.04(a) through (e) or Sections 6.04(h) or 6.04(i) would increase the Conversion Rate to 33.69
or more, unless such action would not result in a violation of NASDAQ Rule 4350 as such, or a
successor to such rule, as may then be in effect and interpreted by NASDAQ.

     (p) Notwithstanding anything to the contrary in this Article 6, no adjustment need be made
for:

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

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

62

 

          (iii) the issuance of any shares of Common Stock pursuant to any option, warrant, right or
exercisable, exchangeable or convertible security not described in (ii) above outstanding as of the
date the Securities were first issued,

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

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

     Section 6.05. Adjustments of Average Prices. Whenever a provision of this Indenture requires
the calculation of an average of Last Reported Sale Prices or Daily VWAP over a span of multiple
days, the Company will make appropriate adjustments to account for any adjustment to the Conversion
Rate that becomes effective, or any event requiring an 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 the average is to be calculated.

     Section 6.06. Adjustments Upon Certain Fundamental Changes.

     (a) If (i) a Holder elects to convert Securities at any time from and after the Effective Date
(as defined below) of a Fundamental Change (in the case of a transaction or event described in
clause (1) in the definition thereof) or from and after the 40th Scheduled Trading Day prior to the
anticipated Effective Date of a Fundamental Change (in the case of a transaction or event described
in clause (2) in the definition thereof), and (ii) 10% or more of the consideration for the
Company’s Common Stock in the Fundamental Change transaction consists of consideration other than
Common Stock that is traded or scheduled to be traded immediately following such transaction on a
national securities exchange, in each case until the 30th calendar day following the actual
Effective Date (or, if later, the related Fundamental Change Purchase date), in certain
circumstances described below, the Conversion Rate will be increased by an additional number
of shares of Common Stock (the “Additional Shares”) as described below. The Company will
notify Holders of the occurrence of any such Fundamental Change and issue a press release no later
than 40 Scheduled Trading Days prior to the anticipated Effective Date of such transaction (in the
case of a transaction or event described in clause (2) of the definition of Fundamental Change
herein) or promptly following the Effective Date of such Fundamental Change (in the case of a
transaction or event described in clause (1) of the definition thereof).

     (b) The number of Additional Shares by which the Conversion Rate will be increased will be
determined by reference to the table attached as Schedule A hereto, based on the date on
which the Fundamental Change occurs or becomes effective (the “Effective Date”) and the price (the
“Stock Price”) paid per share of the Company’s Common Stock in the Fundamental Change. If the

63

 

Fundamental Change is a transaction described in clause (2) of the definition thereof, and holders
of Common Stock receive only cash in such Fundamental Change, the Stock Price shall be the cash
amount paid per share. Otherwise, the Stock Price shall be the average of the Last Reported Sale
Prices of Common Stock over the five Trading Day period ending on the Trading Day preceding the
Effective Date of the Fundamental Change.

     (c) The Stock Prices set forth in the first row of the table in Schedule A hereto
shall be adjusted as of any date on which the Conversion Rate of the Securities is otherwise
adjusted. 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 Conversion Rate
immediately prior to such adjustment and the denominator of which is the Conversion Rate as so
adjusted. The number of Additional Shares set forth in such table will be adjusted in the same
manner as the Conversion Rate as set forth in Section 6.04.

     (d) The table in Schedule A hereto sets forth the hypothetical stock price, the
Effective Date and the number of Additional Shares to be added to the Conversion Rate per $1,000
Principal Amount of Securities.

     The exact Stock Prices and Effective Dates may not be set forth in the table in Schedule
A, in which case:

     (i) If the Stock Price is between two Stock Price amounts in the table or the
Effective Date is between two Effective Dates in the table, the number of Additional
Shares will be determined by a straight-line interpolation between the number of
Additional Shares set forth for the higher and lower Stock Price amounts and the two
dates, as applicable, based on a 365-day year.

     (ii) If the Stock Price is greater than $110.00 per share (subject to adjustment in
the same manner as the Conversion Rate as set forth in Section 6.04), no Additional Shares
will be issued upon conversion.

     (iii) If the Stock Price is less than $46.23 per share (subject to adjustments in the
same manner as the Conversion Rate as set forth in Section 6.04), no Additional Shares
will be issued upon conversion.

     Notwithstanding the foregoing, in no event will the total number of shares of Common Stock
issuable upon conversion exceed 21.6310 shares of Common Stock per $1,000 Principal Amount of
Securities, subject to adjustments in the same manner as the Conversion Rate as set forth in
Section 6.04.

     Section 6.07. Effect of Recapitalization, Reclassification, Consolidation, Merger or Sale.
If any of the following events occur:

64

 

     (i) any recapitalization, reclassification or change of shares of Common Stock
issuable upon conversion of the Securities (other than a change in par value, or from par
value to no par value, or from no par value to par value, or as a result of a subdivision
or combination, or any other change for which an adjustment is provided in Section
6.04(c);

     (ii) any consolidation, merger or combination to which the Company is a party other
than a merger in which the Company is the continuing corporation and which does not result
in any recapitalization, reclassification of, or change (other than in par value, or from
par value to no par value, or from no par value to par value, or as a result of a
subdivision or combination) in outstanding shares of Common Stock; or

     (iii) any sale, lease or other transfer of all or substantially all of the
consolidated properties and assets of the Company and its Subsidiaries to any other Person
or any statutory share exchange

     in each case of clauses (i) – (iii) as a result of which holders of Common Stock shall be
entitled to receive stock, other securities or other property or assets (including cash or
any combination of the foregoing) with respect to or in exchange for such Common Stock,

then at the effective time of such transaction, 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)
providing that the Securities shall be convertible into the kind and amount of shares of stock,
securities or other property or assets (including cash or any combination thereof) receivable upon
such recapitalization, reclassification, change, consolidation, merger, combination, sale lease or
other transfer by a holder of a number of shares of Common Stock issuable upon conversion of such
Securities (assuming, for such purposes, a sufficient number of authorized shares of Common Stock
available to convert all such Securities) immediately prior to such recapitalization,
reclassification, change, consolidation, merger, combination, sale lease or other transfer (the
“Reference Property”). However, if, at the effective time of such transaction, settlement of
Securities converted were to be in cash and shares of Common Stock as described under Section 6.03,
a Securityholder will be entitled thereafter to convert its Securities into cash (up to the
aggregate Principal Amount thereof) and the same type (and in the same proportion) of Reference
Property, based on the Settlement Amount, in an amount equal to the applicable Conversion Rate, as
described under Section 6.03. If the transaction causes Common Stock to be converted into the
right to receive more than a single type of consideration
(determined based in part upon any from of stockholder election), the Reference Property into which
the Securities will be convertible shall be deemed to be the weighted average of the types and
amounts of consideration received by the

65

 

holders of Common Stock that affirmatively make such
election. However, at and after the effective time of the transaction, the amount otherwise
payable in cash upon conversion of the Securities will continue to be payable in cash, and the
Daily Conversion Value shall be calculated based on the value of the Reference Property. The
Company shall not become a party to any such transaction unless its terms are consistent with this
Section 6.07. 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 6. If, in the
case of any such recapitalization, reclassification, change, consolidation, merger, combination,
sale, lease or other transfer, the stock, the Reference Property receivable thereupon by a holder
of Common Stock includes shares of stock, securities or other property or assets (including cash or
any combination thereof) of a corporation other than the successor or purchasing corporation, as
the case may be, in such reclassification, change, consolidation, merger, combination, sale or
conveyance, then such supplemental indenture shall also be executed by such other corporation and
shall contain such additional provisions to protect the interests of the Holders of the Securities
as the Board of Directors shall reasonably consider necessary by reason of the foregoing.

     The Company shall cause notice of the execution of such supplemental indenture to be mailed to
each Holder, at the address of such Holder as it appears on the register of the Securities
maintained by the Security Registrar, within 20 days after execution thereof. Failure to deliver
such notice shall not affect the legality or validity of such supplemental indenture. The above
provisions of this Section shall similarly apply to successive reclassifications, changes,
consolidations, mergers, combinations, sales and conveyances. If this Section 6.07 applies to any
event or occurrence, Section 6.04 shall not apply.

     Section 6.08. Taxes on Shares Issued. Any issue of stock certificates on conversions of
Securities shall be made without charge to the converting Holder for any documentary, transfer,
stamp or any similar tax in respect of the issue thereof, and the Company shall pay any and all
documentary, stamp or similar issue or transfer taxes that may be payable in respect of the issue
or delivery of shares of Common Stock on conversion of Securities pursuant hereto. The Company
shall not, however, be required to pay any such tax which may be payable in respect of any transfer
involved in the issue and delivery of stock in any name other than that of the Holder of any
Securities converted, and the Company shall not be required to issue or deliver any such stock
certificate unless and until the person or persons requesting the issue thereof shall have paid to
the Company the amount of such tax or shall have established to the satisfaction of the Company
that such tax has been paid.

     Section 6.09. Reservation of Shares; Shares to be Fully Paid; Compliance With Governmental
Requirements; Listing of Common Stock. The Company shall provide, free from preemptive rights, out
of its authorized but unissued shares or

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shares held in treasury, sufficient shares of Common Stock
to provide for the
conversion of the Securities from time to time as such Securities are presented for conversion
(assuming that, at the time of the computation of such number of shares or securities, all such
Securities would be held by a single Holder).

     Before taking any action that would cause an adjustment increasing the Conversion Rate to an
amount that would cause the Conversion Price to be reduced below the then par value, if any, of the
shares of Common Stock issuable upon conversion of the Securities, the Company will take all
corporate action which may, in the opinion of its counsel, be necessary in order that the Company
may validly and legally issue shares of such Common Stock at such adjusted Conversion Price.

     The Company covenants that all shares of Common Stock that may be issued upon conversion of
Securities shall be newly issued shares or treasury shares, shall be duly authorized, validly
issued, fully paid and non-assessable and shall be free from preemptive rights and free from any
tax, lien or charge (other than those created by the Holder).

     The Company shall use its reasonable efforts to list or cause to have quoted any shares of
Common Stock to be issued upon conversion of Securities on each national securities exchange or
over-the-counter or other domestic market on which the Common Stock is then listed or quoted.

     Section 6.10. Responsibility of Trustee. The Trustee and any other Conversion Agent shall not
at any time be under any duty or responsibility to any Securityholder to determine the Conversion
Rate or whether any facts exist which may require any adjustment of the Conversion Rate, or with
respect to the nature or extent or calculation of any such adjustment when made, or with respect to
the method employed, or herein or in any supplemental indenture provided to be employed, in making
the same. The Trustee and any other Conversion Agent shall not be accountable with respect to the
validity or value (or the kind or amount) of any shares of Common Stock, or of any securities or
property, which may at any time be issued or delivered upon the conversion of any Securities; and
the Trustee and any other Conversion Agent make no representations with respect thereto. Neither
the Trustee nor any Conversion Agent shall be responsible for any failure of the Company to issue,
transfer or deliver any shares of Common Stock or stock certificates or other securities or
property or cash upon the surrender of any Securities for the purpose of conversion or to comply
with any of the duties, responsibilities or covenants of the Company contained in this Article 6.
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 provisions contained in any
supplemental indenture entered into pursuant to Section 6.07 relating either to the kind or amount
of shares of stock or securities or property (including cash or any combination thereof) receivable
by

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Holders upon the conversion of their Securities after any event referred to in such Section 6.07
or to any adjustment to be made with respect thereto, but, subject to the provisions of Section
10.01, may accept as conclusive evidence of the correctness of any such provisions, and shall be
protected in relying upon, the Officers’ Certificate (which the Company shall be obligated to file
with the
Trustee prior to the execution of any such supplemental indenture) with respect thereto.

     Section 6.11. Notice to Holders Prior to Certain Actions. In case:

     (a) the Company shall declare a dividend (or any other distribution) on its Common Stock that
would require an adjustment in the Conversion Rate pursuant to Section 6.04; or

     (b) the Company shall authorize the granting to the holders of all or substantially all of its
Common Stock of rights or warrants to subscribe for or purchase any share of any class or any other
rights or warrants; or

     (c) of any reclassification or reorganization of the Common Stock of the Company (other than a
subdivision or combination of its outstanding Common Stock, or a change in par value, or from par
value to no par value, or from no par value to par value), or of any consolidation or merger to
which the Company is a party and for which approval of any stockholders of the Company is required,
or of the sale, lease or transfer of all or substantially all of the assets of the Company or any
of its Designated Subsidiaries; or

     (d) of the voluntary or involuntary dissolution, liquidation or winding up of the Company or
any of its Designated Subsidiaries;

then, in each case, the Company shall cause to be filed with the Trustee and the Conversion Agent
and to be mailed to each Securityholder at such Holder’s address appearing on the list of
Securityholders provided for in Section 3.06 of this Indenture, as promptly as practicable but in
any event at least 15 days prior to the applicable date hereinafter specified, a notice stating (x)
the date on which a record is to be taken for the purpose of such dividend, distribution or rights
or warrants, or, if a record is not to be taken, the date as of which the holders of Common Stock
of record to be entitled to such dividend, distribution or rights are to be determined, or (y) the
date on which such reclassification, consolidation, merger, sale, lease, transfer, dissolution,
liquidation or winding up is expected to become effective or occur, and the date as of which it is
expected that holders of Common Stock of record shall be entitled to exchange their Common Stock
for securities or other property deliverable upon such reclassification, consolidation, merger,
sale, transfer, dissolution, liquidation or winding up. Failure to give such notice, or any defect
therein, shall not affect the legality or validity of such

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dividend, distribution,
reclassification, consolidation, merger, sale, transfer, dissolution, liquidation or winding up.

     Section 6.12. Stockholder Rights Plan. Each share of Common Stock issued upon conversion of
Securities pursuant to this Article 6 shall be entitled to receive the appropriate number of
rights, if any, and the certificates representing the Common Stock issued upon such conversion
shall bear such legends, if any, in each case as may be provided by the terms of any stockholder
rights plan adopted by the Company, as the same may be amended from time to time. If at the time
of conversion, however, the rights have separated from the shares of Common Stock in accordance
with the provisions of the applicable stockholder
rights agreement so that the Holders of the Securities would not be entitled to receive any
rights in respect of Common Stock issuable upon conversion of the Securities, the Conversion Rate
will be adjusted at the time of separation as if the Company has distributed to all holders of
Common Stock, shares of Capital Stock of the Company, evidence of indebtedness or assets as
provided in Section 6.04(c), subject to readjustment in the event of the expiration, termination or
redemption of such rights.

     Section 6.13. Company Determination Final. Any determination that the Company or its Board
of Directors must make pursuant to this Article 6 shall be conclusive if made in good faith and in
accordance with the provisions of this Article 6, absent manifest error, and set forth in a Board
Resolution.

ARTICLE 7

Events of Default; Remedies

     Section 7.01. Events of Default. “Event of Default,” wherever used herein, means any one of
the following events:

     (a) default in the payment of interest, including any Additional Interest (as required by the
Registration Rights Agreement), on any Securities when due and payable and the default continues
for a period of 30 days;

     (b) default in the payment of the Principal Amount on any Security at Stated Maturity or upon
required purchase upon a Fundamental Change;

     (c) default in the Company’s obligation to convert the Securities into cash and shares of
Common Stock, if any, upon exercise of a Holder’s conversion rights in accordance with Article 6
hereof, and such failure continues for a period of ten days;

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     (d) failure by the Company to provide the Fundamental Change Company Notice or notice to
Holders required pursuant to Section 6.01(a)(iii) or Section 6.01(a)(iv), in each case within three
days of the date such notice is due;

     (e) default in the observance or performance of any covenant of the Company in this Indenture,
and such default continues for a period of 60 days after there has been given, by registered or
certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of
at least 25% in aggregate Principal Amount of the Outstanding Securities a written notice, in each
case received by the Company (and the Trustee, if applicable), specifying such default and
requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder;

     (f) failure to pay when due at Stated Maturity, or default by the Company or any Subsidiary in
the payment of the principal or interest on any mortgage, agreement or other instrument which
results in the acceleration of maturity, in each case of any indebtedness for money borrowed in
excess of $15,000,000 in the aggregate of the Company and/or any such Subsidiary,
whether such indebtedness now exists or is hereafter created (but excluding intercompany
indebtedness), unless such failure is cured or such acceleration is rescinded, stayed or annulled
within 10 days after written notice of default is given to the Company by the Trustee or the
Holders of at least 25% in principal amount of the Securities then outstanding;

     (g) the entry by a court having jurisdiction in the premises of (i) a decree or order for
relief in respect of the Company in an involuntary case or proceeding under any applicable federal
or state bankruptcy, insolvency, reorganization or other similar law, (ii) a decree or order
adjudging the Company or a Designated Subsidiary of the Company as bankrupt or insolvent, or
approving as properly filed a petition seeking reorganization, arrangement, adjustment or
composition of or in respect of the Company under any applicable federal or state law or (iii)
appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar
official of the Company or of a Designated Subsidiary of the Company of any substantial part of its
property, or ordering the winding up or liquidation of its affairs, and the continuance of any such
decree or order for relief or any such other decree or order unstayed and in effect for a period of
60 consecutive days;

     (h) the commencement by the Company or by a Designated Subsidiary of the Company of a
voluntary case or proceeding under any applicable federal or state bankruptcy, insolvency,
reorganization or other similar law or of any other case or proceeding to be adjudicated a bankrupt
or insolvent, or the consent by it to the entry of a decree or order for relief in respect of the
Company or of a Designated Subsidiary of the Company in an involuntary case or proceeding under any
applicable federal or state bankruptcy, insolvency, reorganization or

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other similar law or to the
commencement of any bankruptcy or insolvency case or proceeding against it, or the filing by it of
a petition or answer or consent seeking reorganization or relief under any applicable federal or
state law, or the consent by it to the filing of such petition or to the appointment of or taking
possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar
official of the Company or of a Designated Subsidiary of the Company or of any substantial part of
its property, or the making by it of an assignment for the benefit of creditors, or the admission
by it in writing of its inability to pay its debts generally as they become due, or the taking of
corporate action by the Company or by a Designated Subsidiary of the Company in furtherance of any
such action; or

     (i) a final judgment for the payment (not covered by insurance) of $25 million or more
rendered against the Company or any Subsidiary, which judgment is not discharged, bonded off or
stayed within 90 days after (i) the date on which the right to appeal thereof has expired if no
such appeal has commenced, or (ii) the date on which all rights to appeal have been extinguished.

     Section 7.02. Acceleration of Maturity; Rescission and Annulment.

     (a) If an Event of Default (other than those specified in Section 7.01(g) and 7.01(h)) occurs
and is continuing, then and in every such case the Trustee or
the Holders of not less than 25% in aggregate Principal Amount of the Outstanding Securities
may (and the Trustee upon request of such Holders shall) declare the Principal Amount plus accrued
and unpaid interest, including Additional Interest, on all the Outstanding Securities to be due and
payable immediately, by a notice in writing to the Company (and to the Trustee if given by
Holders), and upon any such declaration such Principal Amount plus accrued and unpaid interest,
including Additional Interest, shall become immediately due and payable.

     Notwithstanding the foregoing, in the case of an Event of Default specified in Section 7.01(g)
or Section 7.01(h)), the Principal Amount plus accrued and unpaid interest, including Additional
Interest, on all Outstanding Securities will ipso facto become due and payable immediately without
any declaration or other act on the part of the Trustee or any Holder.

     (b) At any time after such a declaration of acceleration has been made, the Holders of a
majority in aggregate Principal Amount of the Outstanding Securities, by written notice to the
Company and the Trustee, may rescind and annul such declaration and its consequences (other than
with respect to an Event of Default under Sections 7.01(a) or 7.01(b)) if:

     (i) such rescission and annulment will not conflict with any judgment or decree of a
court of competent jurisdiction; and

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     (ii) all Events of Default, other than the non-payment of the Principal Amount plus
accrued and unpaid interest, including Additional interest, on Securities that have become
due solely by such declaration of acceleration, have been cured or waived as provided in
Section 7.12.

     No such rescission shall affect any subsequent default or impair any right consequent thereon.

     Section 7.03. Collection of Indebtedness and Suits for Enforcement by Trustee. The Company
covenants that if a Default is made in the payment of the Principal Amount plus accrued and unpaid
interest, including Additional Interest, at the Maturity thereof or in the payment of the
Fundamental Change Purchase Price in respect of any Security, the Company will, upon demand of the
Trustee, pay to it, for the benefit of the Holders of such Securities, the whole amount then due
and payable on such Securities, and, in addition thereto, such further amounts required pursuant to
Section 7.07.

     If an Event of Default occurs and is continuing, the Trustee may, but shall not be obligated
to, pursue any available remedy to collect the payment of the Principal Amount plus accrued but
unpaid interest, including Additional Interest, on the Securities or to enforce the performance of
any provision of the Securities or this Indenture. The Trustee may maintain a proceeding even if
the Trustee does not possess any of the Securities or does not produce any of the Securities in the
proceeding. A delay or omission by the Trustee or any Holder in exercising any right or remedy
accruing upon an Event of Default shall not impair the right
or remedy or constitute a waiver of, or acquiescence in, the Event of Default. No remedy is
exclusive of any other remedy. All available remedies are cumulative.

     Section 7.04. Trustee May File Proofs of Claim. In case of any judicial proceeding relative
to the Company (or any other obligor upon the Securities), 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 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 10.07.

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     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 Securities or the rights of any Holder thereof or to
authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

     Section 7.05. Application of Money Collected. Any money collected by the Trustee pursuant to
this Article 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 to Holders, upon presentation of the Securities 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 under Section 10.07;

     SECOND: To the payment of the amounts then due and unpaid on the Securities for the
Principal Amount, Fundamental Change Purchase Price or interest, including Additional
Interest, as the case may be, 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 Securities; and

     THIRD: To the payment of the remainder, if any, to the Company or any other Person
lawfully entitled thereto.

     Section 7.06. Limitation on Suits. No Holder of any Security 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 (other than in the case of
an Event of Default specified in Section 7.01(a) or Section 7.01(b)), unless:

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

     (ii) the Holders of not less than 25% in aggregate Principal Amount of the
Outstanding Securities shall have made written request to the Trustee to pursue such
remedy in its own name as Trustee hereunder;

     (iii) such Holder or Holders have provided to the Trustee security or indemnity
reasonably satisfactory to it against the expenses, losses and liabilities to be incurred
in compliance with such request;

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

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     (v) no direction, in the opinion of the Trustee, inconsistent with such written
request has been given to the Trustee during such 60-day period by the Holders of a
majority in aggregate Principal Amount of the Outstanding Securities;

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 itself 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 7.07. Unconditional Right of Holders to Receive Payment. Notwithstanding any other
provision of this Indenture, the right of any Holder to receive payment of the Principal Amount,
Fundamental Change Purchase Price or accrued and unpaid interest in respect of the Securities held
by such Holder, on or after the respective due dates expressed in the Securities or any Fundamental
Change Purchase Date, as applicable, and to convert the Securities in accordance with Article 6, or
to bring suit for the enforcement of any such payment on or after such respective dates or the
right to convert, shall not be impaired or affected adversely without the consent of such Holder.

     Section 7.08. 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.

     Section 7.09. Rights and Remedies Cumulative. Except as otherwise provided with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Securities in the last paragraph
of Section 3.07, 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 shall not prevent the concurrent assertion or employment of any other appropriate right
or remedy.

     Section 7.10. Delay or Omission Not Waiver. No delay or omission of the Trustee or of any
Holder of any Security to exercise any right or remedy

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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 7.11. Control by Holders. The Holders of a majority in Principal Amount of the
Outstanding Securities 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:

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

     (ii) the Trustee may refuse to follow any such direction that the Trustee determines
is unduly prejudicial to the rights of any other Holder or that would involve the Trustee
in personal liability.

     Section 7.12. Waiver of Past Defaults. The Holders of not less than a majority in Principal
Amount of the Outstanding Securities may on behalf of the Holders of all the Securities waive any
past Default hereunder and its consequences, except a Default:

     (i) Described in Section 7.01(a) or Section 7.01(b); or

     (ii) in respect of a covenant or provision hereof which under Article 13 cannot be
modified or amended without the consent of the Holder of each Outstanding Security
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 7.13. Undertaking for Costs. In any suit for the enforcement of any right or remedy
under this Indenture or in any suit against the Trustee for any action taken or omitted by it as
Trustee, in either case in respect of the Securities, a court may require any party litigant in
such suit to file an undertaking to pay the costs of the suit, and the court may assess reasonable
costs, including reasonable attorney’s fees and expenses, against any party litigant in the suit
having due
regard to the merits and good faith of the claims or defenses made by the party litigant; but
the provisions of this Section 7.13 shall not apply to any suit instituted by the Company, to any
suit instituted by the Trustee, to any suit instituted

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by any Holder, or group of Holders, holding
in the aggregate more than 10% in Principal Amount of the Outstanding Securities, or to any suit
instituted by any Holder for the enforcement of the payment of the Principal Amount on any Security
on or after Maturity of such Security or the Fundamental Change Purchase Price.

     Section 7.14. Waiver of Stay or Extension Laws. The Company covenants (to the extent that it
may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever
claim or take the benefit or advantage of, any stay, extension or usury law or other law which
would prohibit or forgive the Company from paying all or any portion of the principal of or
interest, including Additional Interest, if any, on the Securities as contemplated herein, wherever
enacted, now or at any time hereafter in force, or which may affect the covenants or the
performance of this Indenture; and the Company (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law and covenants that it will not hinder,
delay or impede the execution of any power herein granted to the Trustee, but will suffer and
permit the execution of every such power as though no such law had been enacted.

     Section 7.15. Violations of Certain Covenants. A violation of Section 4.06 or any other
covenant or agreement in this Indenture that expressly provides that a violation of such covenant
or agreement shall not constitute an Event of Default may only be enforced by the Trustee by
instituting a legal proceeding against the Company for enforcement of such covenant or agreement.

     Section 7.16. Notice of Default. The Trustee may withhold notice to the Holders of the
Securities of any Event of Default, except defaults in payment of Principal Amount or interest,
including Additional Interest, if any, on the Securities, if and so long as a committee of the
trust officers of the Trustee in good faith determines that the withholding of such notice is in
the interest of the Holders of the Securities.

ARTICLE 8

Consolidation, Merger, Conveyance, Transfer or Lease

     Section 8.01. Company May Consolidate, etc., Only on Certain Terms. The Company shall not
consolidate with or merge with or into, or convey, transfer or lease all or substantially all of
its properties and assets to, any Person, unless:

     (a) the resulting, surviving or transferee Person if not the Company (the “Successor
Company”) is a Person organized and existing under the laws of the United States of America, any
state thereof or the District of Columbia, and the Successor Company (if not the Company itself)
expressly assumes, by a supplemental indenture, executed and delivered to the Trustee, in form
reasonably
satisfactory to the Trustee, all of the obligations of the Company under the

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Securities, this
Indenture and, to the extent then still operative, the Registration Rights Agreement; and

     (b) immediately after giving effect to such transaction, no Event of Default shall have
occurred and be continuing.

     Section 8.02. Successor Substituted. Upon any consolidation of the Company with, or merger
of the Company with or into, any other Person or any conveyance, transfer or lease of the
properties and assets of the Company substantially as an entirety in accordance with Section 8.01,
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.

ARTICLE 9

Subordination of the Securities

     Section 9.01. Agreement of Subordination.

     The Company covenants and agrees, and each Holder of Securities issued hereunder by its
acceptance thereof likewise covenants and agrees, that all Securities shall be issued subject to
the provisions of this Article 9; and each Person holding any Security, whether upon original issue
or upon transfer, assignment or exchange thereof, accepts and agrees to be bound by such
provisions.

     The payment of the principal of the cash portion of the conversion obligation as set forth in
Article 6, if any, and interest on, all Securities (including, but not limited to, the Fundamental
Change Purchase Price with respect to the Securities subject to purchase in accordance with Article
5 as provided in this Indenture) issued hereunder shall, to the extent and in the manner
hereinafter set forth, be subordinated and subject in right of payment to the prior payment in
full, in cash or other payment satisfactory to the holders of Senior Indebtedness, of all Senior
Indebtedness, whether outstanding at the date of this Indenture or thereafter incurred. The
Securities shall rank senior in right of payment to all Subordinated Indebtedness and equal in
right of payment to all Senior Subordinated Indebtedness.

     No provision of this Article 9 shall prevent the occurrence of any default or Event of Default
hereunder.

     Section 9.02. Payments to Holders.

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     No payment shall be made with respect to the principal of, or premium, if any, the cash
portion of the conversion obligation, if any, or interest on, the Securities (including, but not
limited to, the Fundamental Change Purchase Price
with respect to the Securities subject to purchase in accordance with Article 5 as provided in
this Indenture), except payments and distributions made by the Trustee as permitted by the first or
second paragraph of Section 9.05, if:

     (i) a default in the payment of principal, premium, interest, rent or other
obligations due on any Designated Senior Indebtedness occurs and is continuing (or, in the
case of Designated Senior Indebtedness for which there is a period of grace, in the event
of such a default that continues beyond the period of grace, if any, specified in the
instrument or lease evidencing such Designated Senior Indebtedness), unless and until such
default shall have been cured or waived or shall have ceased to exist; or

     (ii) a default, other than a payment default, on any Designated Senior Indebtedness
occurs and is continuing that then permits holders of such Designated Senior Indebtedness
to accelerate its maturity and the Trustee receives a notice of the default (a “Payment
Blockage Notice”) from a Representative or holder of such Designated Senior Indebtedness.

     If the Trustee receives any Payment Blockage Notice pursuant to clause (ii) above, no
subsequent Payment Blockage Notice shall be effective for purposes of this Section unless and until
at least 365 days shall have elapsed since the initial effectiveness of the immediately prior
Payment Blockage Notice and all scheduled payments on the Securities that have come due have been
paid in full in cash. No nonpayment default that existed or was continuing on the date of delivery
of any Payment Blockage Notice to the Trustee (unless such default was waived, cured or otherwise
ceased to exist and thereafter subsequently reoccurred) shall be, or be made, the basis for a
subsequent Payment Blockage Notice.

     The Company may and shall resume payments on and distributions in respect of the Securities
upon the earlier of:

     (a) in the case of a default referred to in clause (i) above, the date upon which the default
is cured or waived or ceases to exist, or

     (b) in the case of a default referred to in clause (ii) above, the earlier of the date on
which such default is cured or waived or ceases to exist or 179 days after the date on which the
applicable Payment Blockage Notice is received, if the maturity of such Designated Senior
Indebtedness has not been accelerated, unless this Article 9 otherwise prohibits the payment or
distribution at the time of such payment or distribution.

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     Upon any payment by the Company, or distribution of assets of the Company of any kind or
character, whether in cash, property or securities, to creditors upon any dissolution or winding-up
or liquidation or reorganization of the Company (whether voluntary or involuntary) or in
bankruptcy, insolvency, receivership or similar proceedings, all amounts due or to become due upon
all Senior Indebtedness shall first be paid in full, in cash or other payment satisfactory to the
holders of Senior Indebtedness, before any payment is made on
account of the principal of, and premium, if any, the cash portion of the conversion
obligation, if any, or interest on, the Securities (except payments made pursuant to Article 12
from monies deposited with the Trustee pursuant thereto prior to commencement of proceedings for
such dissolution, winding-up, liquidation or reorganization); and upon any such dissolution or
winding-up or liquidation or reorganization of the Company or bankruptcy, insolvency, receivership
or other proceeding, any payment by the Company, or distribution of assets of the Company of any
kind or character, whether in cash, property or securities, to which the Holders of the Securities
or the Trustee would be entitled, except for the provision of this Article 9, shall (except as
aforesaid) be paid by the Company or by any receiver, trustee in bankruptcy, liquidating trustee,
agent or other Person making such payment or distribution, or by the Holders of the Securities or
by the Trustee under this Indenture, if received by them or it, directly to the holders of Senior
Indebtedness (pro rata to such holders on the basis of the respective amounts of Senior
Indebtedness held by such holders, or as otherwise required by law or a court order) or their
Representative or Representatives, or to the trustee or trustees under any indenture pursuant to
which any instruments evidencing any Senior Indebtedness may have been issued, as their respective
interests may appear, to the extent necessary to pay all Senior Indebtedness in full, in cash or
other payment satisfactory to the holders of Senior Indebtedness, after giving effect to any
concurrent payment or distribution to or for the holders of Senior Indebtedness, before any payment
or distribution is made to the Holders of the Securities or to the Trustee.

     For purposes of this Article 9, the words, “cash, property or securities” shall not be deemed
to include shares of stock of the Company, as reorganized or readjusted, or securities of the
Company or any other corporation provided for by a plan of reorganization or readjustment, the
payment of which is subordinated at least to the extent provided in this Article 9 with respect to
the Securities to the payment of all Senior Indebtedness which may at the time be outstanding;
provided that (i) the Senior Indebtedness is assumed by the new corporation, if any, resulting from
any reorganization or readjustment and (ii) the rights of the holders of Senior Indebtedness (other
than leases which are not assumed by the Company or the new corporation, as the case may be) are
not, without the consent of such holders, altered by such reorganization or readjustment. The
consolidation of the Company with, or the merger of the Company into, another corporation or the
liquidation or dissolution of the Company following the

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conveyance, transfer or lease of its
property as an entirety, or substantially as an entirety, to another corporation upon the terms and
conditions provided for in Article 8 shall not be deemed a dissolution, winding-up, liquidation or
reorganization for the purposes of this Section 9.02 if such other corporation shall, as a part of
such consolidation, merger, conveyance, transfer or lease, comply with the conditions stated in
Article 8.

     In the event of the acceleration of the Securities because of an Event of Default, no payment
or distribution shall be made to the Trustee or any Holder of Securities in respect of the
principal of, and premium, if any, the cash portion of the conversion obligation, if any, or
interest on, the Securities by the Company (including, but not limited to, the Fundamental Change
Purchase Price with
respect to the Securities subject to purchase in accordance with Article 5 as provided in this
Indenture), until all Senior Indebtedness has been paid in full in cash or other payment
satisfactory to the holders of Senior Indebtedness or such acceleration is rescinded in accordance
with the terms of this Indenture. If payment of Securities is accelerated because of an Event of
Default, the Company shall promptly notify holders of Senior Indebtedness of such acceleration.

     In the event that, notwithstanding the foregoing provisions, any payment or distribution of
assets of the Company of any kind or character, whether in cash, property or securities (including,
without limitation, by way of setoff or otherwise), prohibited by the foregoing, shall be received
by the Trustee or the Holders of the Securities before all Senior Indebtedness is paid in full, in
cash or other payment satisfactory to the holders of Senior Indebtedness, or provision is made for
such payment thereof in accordance with its terms in cash or other payment satisfactory to the
holders of Senior Indebtedness, such payment or distribution shall be held in trust for the benefit
of and shall be paid over or delivered to the holders of Senior Indebtedness or their
Representative or Representatives, or to the trustee or trustees under any indenture pursuant to
which any instruments evidencing any Senior Indebtedness may have been issued, as their respective
interests may appear, as calculated by the Company, for application to the payment of all Senior
Indebtedness remaining unpaid to the extent necessary to pay all Senior Indebtedness in full, in
cash or other payment satisfactory to the holders of Senior Indebtedness, after giving effect to
any concurrent payment or distribution to or for the holders of such Senior Indebtedness.

     Section 9.03. Subrogation of Securities.

     Subject to the payment in full, in cash or other payment satisfactory to the holders of Senior
Indebtedness, of all Senior Indebtedness, the rights of the Holders of the Securities shall be
subrogated to the extent of the payments or distributions made to the holders of such Senior
Indebtedness pursuant to the provisions of this Article 9 (equally and ratably with the holders of
all

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indebtedness of the Company which by its express terms is subordinated to other indebtedness of
the Company to substantially the same extent as the Securities are subordinated and is entitled to
like rights of subrogation) to the rights of the holders of Senior Indebtedness to receive payments
or distributions of cash, property or securities of the Company applicable to the Senior
Indebtedness until the principal of, and premium, if any, the cash portion of the conversion
obligation, if any, and interest on, the Securities shall be paid in full, in cash or other
payment satisfactory to the holders of Senior Indebtedness; and, for the purposes of such
subrogation, no payments or distributions to the holders of the Senior Indebtedness of any cash,
property or securities to which the Holders of the Securities or the Trustee would be entitled
except for the provisions of this Article 9, and no payment over, pursuant to the provisions of
this Article 9, to or for the benefit of the holders of Senior Indebtedness by Holders of the
Securities or the Trustee shall, as between the Company, its creditors other than holders of
Senior Indebtedness and the Holders of the Securities, be deemed to be a payment by the Company to
or on account of the Senior Indebtedness; and no payments or
distributions of cash, property or securities to or for the benefit of the Holders of the
Securities pursuant to the subrogation provisions of this Article 9, which would otherwise have
been paid to the holders of Senior Indebtedness, shall be deemed to be a payment by the Company to
or for the account of the Securities. It is understood that the provisions of this Article 9 are
and are intended solely for the purposes of defining the relative rights of the Holders of the
Securities, on the one hand, and the holders of the Senior Indebtedness, on the other hand.

     Nothing contained in this Article 9 or elsewhere in this Indenture or in the Securities is
intended to or shall impair, as among the Company, its creditors other than the holders of Senior
Indebtedness and the Holders of the Securities, the obligation of the Company, which is absolute
and unconditional, to pay to the Holders of the Securities the principal of, and premium, if any,
the cash portion of the conversion obligation, if any, and any interest on the Securities as and
when the same shall become due and payable in accordance with their terms, or is intended to or
shall affect the relative rights of the Holders of the Securities and creditors of the Company
other than the holders of the Senior Indebtedness, nor shall anything herein or therein prevent the
Trustee or the Holder of any Security from exercising all remedies otherwise permitted by
applicable law upon default under this Indenture, subject to the rights, if any, under this Article
9 of the holders of Senior Indebtedness in respect of cash, property or securities of the Company
received upon the exercise of any such remedy.

     Upon any payment or distribution of assets of the Company referred to in this Article 9, the
Trustee and the Holders of the Securities shall be entitled to rely upon any order or decree made
by any court of competent jurisdiction in which such bankruptcy, dissolution, winding-up,
liquidation or reorganization proceedings are pending, or a certificate of the receiver, trustee in
bankruptcy, liquidating trustee, agent or other person making such payment or distribution,

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delivered to the Trustee or to the Holders of the Securities, for the purpose of ascertaining the
persons entitled to participate in such distribution, the holders of the Senior Indebtedness and
other indebtedness of the Company, the amount thereof or payable thereon and all other facts
pertinent thereto or to this Article 9.

     Section 9.04. Authorization to Effect Subordination.

     Each Holder of a Security by the Holder’s acceptance thereof authorizes and directs the
Trustee on the Holder’s behalf to take such action as may be necessary or appropriate to effectuate
the subordination as provided in this Article 9 and appoints the Trustee to act as the Holder’s
attorney-in-fact for any and all such purposes. If the Trustee does not file a proper proof of
claim or proof of debt in the form required in any proceeding referred to in Section 9.03 hereof at
least 30 days before the expiration of the time to file such claim, the holders of any Senior
Indebtedness or their representatives are hereby authorized to file an appropriate claim for and on
behalf of the Holders of the Securities.

     Section 9.05. Notice to Trustee.

     The Company shall give prompt written notice in the form of an Officers’ Certificate to a
Trust Officer of the Trustee and to any Paying Agent of any fact
known to the Company which would prohibit the making of any payment of monies to or by the
Trustee or any Paying Agent in respect of the Securities pursuant to the provisions of this Article
9. Notwithstanding the provisions of this Article 9 or any other provision of this Indenture, the
Trustee shall not be charged with knowledge of the existence of any facts which would prohibit the
making of any payment of monies to or by the Trustee in respect of the Securities pursuant to the
provisions of this Article 9, unless and until a Trust Officer of the Trustee shall have received
written notice thereof at the Corporate Trust Office from the Company (in the form of an Officers’
Certificate) or a Representative or a holder or holders of Senior Indebtedness or from any trustee
thereof; and before the receipt of any such written notice, the Trustee shall be entitled in all
respects to assume that no such facts exist; provided that, if on a date not less than one Business
Day prior to the date upon which by the terms hereof any such monies may become payable for any
purpose (including, without limitation, the payment of the principal of, or premium, if any, or
interest on, any Security) the Trustee shall not have received, with respect to such monies, the
notice provided for in this Section 9.05, then, anything herein contained to the contrary
notwithstanding, the Trustee shall have full power and authority to receive such monies and to
apply the same to the purpose for which they were received and shall not be affected by any notice
to the contrary which may be received by it on or after such prior date. Notwithstanding anything
in this Article 9 to the contrary, nothing shall prevent any payment by the Trustee to the Holders
of monies deposited with it pursuant to Article 12, and any such payment shall not be subject to
the provisions of Article 9.

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     The Trustee shall be entitled to rely on the delivery to it of a written notice by a
Representative or a person representing himself to be a holder of Senior Indebtedness (or a trustee
on behalf of such holder) to establish that such notice has been given by a Representative or a
holder of Senior Indebtedness or a trustee on behalf of any such holder or holders. In the event
that the Trustee determines in good faith that further evidence is required with respect to the
right of any person as a holder of Senior Indebtedness to participate in any payment or
distribution pursuant to this Article 9, the Trustee may request such Person to furnish evidence to
the reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness held by such
Person, the extent to which such Person is entitled to participate in such payment or distribution
and any other facts pertinent to the rights of such Person under this Article 9, and if such
evidence is not furnished the Trustee may defer any payment to such Person pending judicial
determination as to the right of such Person to receive such payment.

     Section 9.06. Trustee’s Relation to Senior Indebtedness.

     The Trustee in its individual capacity shall be entitled to all the rights set forth in this
Article 9 in respect of any Senior Indebtedness at any time held by it, to the same extent as any
other holder of Senior Indebtedness, and nothing in this Indenture shall deprive the Trustee of any
of its rights as such holder.

     With respect to the holders of Senior Indebtedness, the Trustee undertakes to perform or to
observe only such of its covenants and obligations as are
specifically set forth in this Article 9, and no implied covenants or obligations with respect
to the holders of Senior Indebtedness shall be read into this Indenture against the Trustee. The
Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness, and,
except with respect to its express obligations under this Article 9, the Trustee shall not be
liable to any holder of Senior Indebtedness if it shall pay over or deliver to Holders of
Securities, the Company or any other person money or assets to which any holder of Senior
Indebtedness shall be entitled by virtue of this Article 9 or otherwise.

     Section 9.07. No Impairment of Subordination.

     No right of any present or future holder of any Senior Indebtedness to enforce subordination
as herein provided shall at any time in any way be prejudiced or impaired by any act or failure to
act on the part of the Company or by any act or failure to act, in good faith, by any such holder
or by any noncompliance by the Company with the terms, provisions and covenants of this Indenture,
regardless of any knowledge thereof which any such holder may have or otherwise be charged with.

     Section 9.08. Certain Conversions Deemed Payment.

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     For the purposes of this Article 9 only, (1) the issuance and delivery of junior securities
upon conversion of Securities in accordance with Article 6 shall not be deemed to constitute a
payment or distribution on account of the principal of, or premium, if any, the cash portion of the
conversion obligation, if any, or interest on, Securities or on account of the purchase or other
acquisition of Securities, and (2) the payment, issuance or delivery of cash (except in
satisfaction of fractional shares pursuant to Article 6), property or securities (other than junior
securities) upon conversion of a Security shall be deemed to constitute payment on account of the
principal of such Security. For the purposes of this Section 9.08, the term “junior securities”
means (a) shares of any stock of any class of the Company or (b) securities of the Company which
are subordinated in right of payment to all Senior Indebtedness which may be outstanding at the
time of issuance or delivery of such securities to substantially the same extent as, or to a
greater extent than, the Securities are so subordinated as provided in this Article. Nothing
contained in this Article or elsewhere in this Indenture or in the Securities is intended to or
shall impair, as among the Company, its creditors other than holders of Senior Indebtedness and the
Holders, the right, which is absolute and unconditional, of the Holder of any Security to convert
such Security in accordance with Article 6.

     Section 9.09. Article Applicable to Paying Agents.

     If at any time any Paying Agent other than the Trustee shall have been appointed by the
Company and be then acting hereunder, the term “Trustee” as used in this Article shall (unless the
context otherwise requires) be construed as extending to and including such Paying Agent within its
meaning as fully for all intents and purposes as if such Paying Agent were named in this Article in
addition to or in place of the Trustee; provided, however, that the first paragraph
of Section 9.05 shall not apply to the Company or any Affiliate of the Company if it or such
Affiliate acts as Paying Agent.

     Section 9.10. Senior Indebtedness Entitled to Rely.

     The holders of Senior Indebtedness (including, without limitation, Designated Senior
Indebtedness) shall have the right to rely upon this Article 9, and no amendment or modification of
the provisions contained herein shall diminish the rights of such holders unless such holders shall
have agreed in writing thereto.

     Section 9.11. Anti-Layering.

     The Company shall not incur, directly or indirectly, or otherwise become liable for any
Indebtedness which is subordinated or junior in right or payment to any Senior Indebtedness unless
such Indebtedness is Senior Subordinated Indebtedness or is Subordinated Indebtedness, provided;
however, that nothing in

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this Section 9.11 shall limit the Company’s ability to incur unsecured
Senior Indebtedness.

ARTICLE 10

The Trustee

     Section 10.01. Duties and Responsibilities of Trustee. The Trustee, prior to the occurrence
of an Event of Default and after the curing of all Events of Default which may have occurred,
undertakes to perform such duties and only such duties as are specifically set forth in this
Indenture. In case an Event of Default has occurred (which has not been cured or waived), 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 his own affairs.

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

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

     (i) the duties and obligations of the Trustee shall be determined solely by the
express provisions of this Indenture and the Trust Indenture Act, and the Trustee shall
not be liable except for the performance of such duties and obligations as are
specifically set forth in this Indenture and no implied covenants or obligations shall be
read into this Indenture and the Trust Indenture Act against the Trustee; and

     (ii) in the absence of bad faith and willful misconduct on the part of the Trustee,
the Trustee may conclusively rely as to the truth of the statements and the correctness of
the opinions expressed therein, upon any
certificates or opinions furnished to the Trustee and conforming to the requirements
of this Indenture; but, in the case of any such certificates or opinions which by any
provisions 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 any
mathematical calculations or other facts stated therein);

     (b) the Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer or Officers of the Trustee, unless the Trustee was negligent in ascertaining
the pertinent facts;

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     (c) 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 written direction of the Holders of not less than a
majority in Principal Amount of the Securities at the time outstanding determined as provided in
Section 1.04 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;

     (d) whether or not therein 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;

     (e) the Trustee shall not be liable in respect of any payment (as to the correctness of
amount, entitlement to receive or any other matters relating to payment) or notice effected by the
Company or any other paying agent or any records maintained by any co-registrar with respect to the
Securities; and

     (f) if any party fails to deliver a notice relating to an event the fact of which, pursuant to
this Indenture, requires notice to be sent to the Trustee, the Trustee may conclusively rely on its
failure to receive such notice as reason to act as if no such event occurred.

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

     Section 10.02. Notice of Defaults. The Trustee shall give the Holders notice of any Default
hereunder within 90 days after the occurrence thereof; provided, that (except in the case of any
Default in the payment of Principal Amount or Interest on any of the Securities or Fundamental
Change Purchase Price), the Trustee shall be protected in withholding such notice if and so long as
a committee of Responsible Officers of the Trustee in good faith determines that the withholding of
such notice is in the interest of the Holders of Securities.

     Section 10.03. Reliance on Documents, Opinions, Etc. Except as otherwise provided in Section
10.01:

     (a) the Trustee may rely and shall be protected in acting upon any resolution, certificate,
statement, instrument, opinion, report, notice, request, consent, order, bond, debenture, note,
coupon or other paper or document (whether in its original or facsimile form) believed by it in
good faith to be genuine and to have been signed or presented by the proper party or parties;

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     (b) any request, direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by an Officers’ Certificate (unless other evidence in respect thereof be
herein specifically prescribed); and any resolution of the Board of Directors may be evidenced to
the Trustee by a copy thereof certified by the Secretary or an Assistant Secretary of the Company;

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

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

     (e) 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 or other paper or document, but the Trustee, in its discretion, may
make such further inquiry or investigation into such facts or matters as it may see fit, and, if
the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to
examine the books, records and premises of the Company, personally or by agent or attorney (at the
reasonable expense of the Company and shall incur no liability of any kind by reason of such
inquiry or investigation);

     (f) 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 by it
with due care hereunder;

     (g) 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;

     (h) 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;

     (i) 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

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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 Securities and the Indenture; and

     (j) 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.

     Section 10.04. No Responsibility for Recitals, Etc. The recitals contained herein and in the
Securities (except in the Trustee’s certificate of authentication) shall be taken as the statements
of the Company, and the Trustee assumes no responsibility for the correctness of the same. The
Trustee makes no representations as to the validity or sufficiency of this Indenture or of the
Securities. The Trustee shall not be accountable for the use or application by the Company of any
Securities or the proceeds of any Securities authenticated and delivered by the Trustee in
conformity with the provisions of this Indenture.

     Section 10.05. Trustee, Paying Agents, Conversion Agents or Registrar May Own Securities.
The Trustee, any paying agent, any conversion agent or Security Registrar, in its individual or any
other capacity, may become the owner or pledgee of Securities with the same rights it would have if
it were not Trustee, paying agent, conversion agent or Security Registrar.

     Section 10.06. Monies to be Held in Trust. Subject to the provisions of Section 12.04, all
monies and properties received by the Trustee shall, until used or applied as herein provided, be
held in trust for the purposes for which they were received. 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
may be agreed in writing from time to time by the Company and the Trustee.

     Section 10.07. Compensation and Expenses of Trustee. The Company covenants and agrees to pay
to the Trustee from time to time, and the Trustee shall be entitled to, reasonable compensation for
all services rendered by it hereunder in any capacity (which shall not be limited by any provision
of law in regard to the compensation of a trustee of an express trust) as mutually agreed to from
time to time in writing between the Company and the Trustee, and the Company will pay or reimburse
the Trustee upon its request for all reasonable expenses, disbursements and advances reasonably
incurred or made by the Trustee in accordance with any of the provisions of this Indenture
(including the reasonable compensation and the expenses and disbursements of its counsel and of all
Persons not regularly in its employ) except any such expense, disbursement or advance as may arise
from its gross negligence, willful misconduct or bad

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faith. The Company also covenants to indemnify the Trustee (or any officer, director or
employee of the Trustee), in any capacity under this Indenture and its agents and any
authenticating agent for, and to hold them harmless against, any and all loss, liability, claim or
expense incurred without gross negligence, willful misconduct or bad faith on the part of the
Trustee or such officers, directors, employees and agent or authenticating agent, as the case may
be, and arising out of or in connection with the acceptance or administration of this trust or in
any other capacity hereunder, including the costs and expenses of defending themselves against any
claim of liability in the premises. The obligations of the Company under this Section 10.07 to
compensate or indemnify the Trustee and to pay or reimburse the Trustee for expenses, disbursements
and advances shall be secured by a lien prior to that of the Securities upon all property and funds
held or collected by the Trustee as such, except funds held in trust for the benefit of the Holders
of particular Securities. The obligation of the Company under this Section shall survive the
satisfaction and discharge of this Indenture.

     When the Trustee and its agents and any authenticating agent incur expenses or render services
after an Event of Default specified in Section 7.01(h) with respect to the Company occurs, the
expenses and the compensation for the services are intended to constitute expenses of
administration under any bankruptcy, insolvency or similar laws.

     Section 10.08. Officers’ Certificate as Evidence. Except as otherwise provided in Section
10.01, whenever in the administration of the provisions of this Indenture the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to taking or omitting any
action hereunder, such matter (unless other evidence in respect thereof be herein specifically
prescribed) may, in the absence of negligence or willful misconduct on the part of the Trustee, be
deemed to be conclusively proved and established by an Officers’ Certificate delivered to the
Trustee.

     Section 10.09. Conflicting Interests of Trustee. 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 10.10. Eligibility of Trustee. 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 (or if such Person is a member of a bank
holding company system, its bank holding company shall have 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 any supervising or examining authority, then for the purposes of this
Section the combined capital and surplus of such

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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 10.10, it
shall resign immediately in the manner and with the effect hereinafter specified in this
Article.

     Section 10.11. Resignation or Removal of Trustee.

     (a) The Trustee may at any time resign by giving written notice of such resignation to the
Company and to the Holders of Securities. Upon receiving such notice of resignation, the Company
shall promptly appoint a successor trustee by written instrument, in duplicate, executed by order
of the Board of Directors, one copy of which instrument shall be delivered to the resigning Trustee
and one copy to the successor trustee. If no successor trustee shall have been so appointed and
have accepted appointment 60 days after the mailing of such notice of resignation to the
Securityholders, the resigning Trustee may, upon ten business days’ notice to the Company and the
Securityholders, appoint a successor identified in such notice or may petition, at the expense of
the Company, any court of competent jurisdiction for the appointment of a successor trustee, or,
any Securityholder who has been a bona fide Holder of a Security or Securities for at least 6
months may, subject to the provisions of Section 7.13, on behalf of himself and all others
similarly situated, petition any such court for the appointment of a successor trustee. Such court
may thereupon, after such notice, if any, as it may deem proper and prescribe, appoint a successor
trustee.

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

     (i) the Trustee shall fail to comply with Section 10.09 after written request
therefor by the Company or by any Securityholder who has been a bona fide Holder of a
Security or Securities for at least 6 months; or

     (ii) the Trustee shall cease to be eligible in accordance with the provisions of
Section 10.10 and shall fail to resign after written request therefor by the Company or by
any such Securityholder; or

     (iii) 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,
the Company may remove the Trustee and appoint a successor trustee by written instrument,
in duplicate, executed by order of the Board of Directors, one copy of which instrument
shall be delivered to the Trustee so removed and one copy to the successor trustee, or,
subject to the

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provisions of Section 7.13, any Securityholder who has been a bona fide
Holder of a Security or Securities for at least 6 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; provided, however, that if no
successor Trustee shall have been appointed and have accepted appointment 60 days after
either the Company or the Securityholders has removed the Trustee, the Trustee so removed
may petition at its own expense any court of competent
jurisdiction for an appointment of a successor trustee. Such court may thereupon,
after such notice, if any, as it may deem proper and prescribe, remove the Trustee and
appoint a successor trustee.

     (c) The Holders of a majority in aggregate Principal Amount of the Securities at the time
outstanding may at any time remove the Trustee and nominate a successor trustee which shall be
deemed appointed as successor trustee unless, within ten days after notice to the Company of such
nomination, the Company objects thereto, in which case the Trustee so removed or any
Securityholder, or if such Trustee so removed or any Securityholder fails to act, the Company, upon
the terms and conditions and otherwise as in Section 10.11(a) provided, may petition any court of
competent jurisdiction for an appointment of a successor trustee.

     (d) Any resignation or removal of the Trustee and appointment of a successor trustee pursuant
to any of the provisions of this Section 10.10 shall become effective upon acceptance of
appointment by the successor trustee as provided in Section 10.12.

     Section 10.12. Acceptance by Successor Trustee. Any successor trustee appointed as provided
in Section 10.11 shall execute, acknowledge and deliver to the Company and to its predecessor
trustee an instrument accepting such appointment hereunder, and thereupon the resignation or
removal of the predecessor trustee shall become effective and such successor trustee, without any
further act, deed or conveyance, shall become vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with like effect as if originally named as trustee
herein; but, nevertheless, on the written request of the Company or of the successor trustee, the
trustee ceasing to act shall, upon payment of any amount then due it pursuant to the provisions of
Section 10.07, execute and deliver an instrument transferring to such successor trustee all the
rights and powers of the trustee so ceasing to act. Upon request of any such successor trustee,
the Company shall execute any and all instruments in writing for more fully and certainly vesting
in and confirming to such successor trustee all such rights and powers. Any trustee ceasing to act
shall, nevertheless, retain a lien upon all property and funds held or collected by such trustee as
such, except for funds held in trust for the benefit of Holders of particular Securities, to secure
any amounts then due it pursuant to the provisions of Section 10.07.

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     No successor trustee shall accept appointment as provided in this Section 10.12 unless, at the
time of such acceptance, such successor trustee shall be qualified under the provisions of Section
10.09 and be eligible under the provisions of Section 10.10.

     Upon acceptance of appointment by a successor trustee as provided in this Section 10.12, the
Company (or the former trustee, at the written direction of the Company) shall mail or cause to be
mailed notice of the succession of such trustee hereunder to the Holders of Securities at their
addresses as they shall appear on the Security Register. If the Company fails to mail such notice
within ten days
after acceptance of appointment by the successor trustee, the successor trustee shall cause
such notice to be mailed at the expense of the Company.

     Section 10.13. Succession by Merger, Etc. 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 of the corporate trust business of the Trustee (including
any trust created by this Indenture), shall be the successor to the Trustee hereunder without the
execution or filing of any paper or any further act on the part of any of the parties hereto,
provided that in the case of any corporation succeeding to all or substantially all of the
corporate trust business of the Trustee, such corporation shall be qualified under the provisions
of Section 10.09 and eligible under the provisions of Section 10.10.

     In case at the time such successor to the Trustee shall succeed to the trusts created by this
Indenture, any of the Securities shall have been authenticated but not delivered, any such
successor to the Trustee may adopt the certificate of authentication of any predecessor trustee or
authenticating agent appointed by such predecessor trustee, and deliver such Securities so
authenticated; and in case at that time any of the Securities shall not have been authenticated,
any successor to the Trustee or any authenticating agent appointed by such successor trustee may
authenticate such Securities in the name of the successor trustee; and in all such cases such
certificates shall have the full force that is provided in the Securities or in this Indenture;
provided, however, that the right to adopt the certificate of authentication of any predecessor
Trustee or authenticate Securities in the name of any predecessor Trustee shall apply only to its
successor or successors by merger, conversion or consolidation.

     Section 10.14. Preferential Collection of Claims. If and when the Trustee shall be or become
a creditor of the Company (or any other obligor upon the Securities), the Trustee shall be subject
to the provisions of the Trust Indenture Act regarding the collection of the claims against the
Company (or any such other obligor).

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     Section 10.15. Trustee’s Application for Instructions from the Company. Any application by
the Trustee for written instructions from the Company (other than with regard to any action
proposed to be taken or omitted to be taken by the Trustee that affects the rights of the Holders
of the Securities under this Indenture) may, at the option of the Trustee, set forth in writing any
action proposed to be taken or omitted by the Trustee under this Indenture and the date on and/or
after which such action shall be taken or such omission shall be effective. The Trustee shall not
be liable for any action taken by, or omission of, the Trustee in accordance with a proposal
included in such application on or after the date specified in such application (which date shall
not be less than three Business Days after the date any officer of the Company actually receives
such application, unless any such officer shall have consented in writing to any earlier date)
unless prior to taking any such action (or the effective date in the case of an
omission), the Trustee shall have received written instructions in response to such
application specifying the action to be taken or omitted.

ARTICLE 11

Holders’ Lists and Reports by Trustee

     Section 11.01. Company to Furnish Trustee Names and Addresses of Holders. The Company will
furnish or cause to be furnished to the Trustee:

     (i) semi-annually, not more than 15 days after each Record Date, a list, in such form
as the Trustee may reasonably require, of the names and addresses of the Holders as of
such Record Date; and

     (ii) 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
Security Registrar; provided, however, that no such list need be furnished so long as the Trustee
is acting as Security Registrar.

     Section 11.02. Preservation of Information; Communications to Holders.

     (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 11.01 and the names and addresses of Holders received by the Trustee in its capacity as
Security Registrar. The Trustee may destroy any list furnished to it as provided in Section 11.01
upon receipt of a new list so furnished.

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

     (c) Every Securityholder, 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 11.03. Reports By Trustee. 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. Reports so required
to be transmitted at stated intervals of not more than 12 months shall be transmitted no later than
December 31 of each calendar year, commencing on December 31, 2006. Each such report shall be
dated as of a date not more than 60 days prior to the date of transmission.

     (a) 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 Securities are listed, with the
Commission and with the Company. The Company will notify the Trustee when the Securities are
listed on any stock exchange or of any delisting thereof.

     Section 11.04. Reports by Company.

     (a) After this Indenture has been qualified under the Trust Indenture Act, the Company shall
file with the Trustee and the Commission, and transmit to Securityholders, such information,
documents and other reports and such summaries thereof, as may be required pursuant to the Trust
Indenture Act at the times and in the manner provided pursuant to such Act; provided that any such
information, documents or reports filed with the Commission pursuant to Section 13 or 15(d) of the
Exchange Act shall be filed with the Trustee within 15 days after the same is filed with the
Commission.

     (b) Delivery of such reports, information and documents to the Trustee is for informational
purposes only, and the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained therein, including the
Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to
conclusively rely exclusively on an Officer’s Certificate). It is expressly understood that
materials transmitted electronically by the Company to the Trustee shall be deemed filed with the
Trustee for purposes of this Section 11.04.

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ARTICLE 12

Satisfaction and Discharge

     Section 12.01. Discharge of Indenture. When (a) the Company shall deliver to the Trustee for
cancellation all Securities theretofore authenticated (other than any Securities that have been
destroyed, lost or stolen and in lieu of or in substitution for which other Securities shall have
been authenticated and delivered) and not theretofore canceled, or (b) all the Securities not
theretofore canceled or delivered to the Trustee for cancellation shall have become due and payable
(whether at Stated Maturity, or on any Fundamental Change Purchase Date or upon conversion or
otherwise) and the Company shall deposit with the Trustee, in trust, cash funds and shares of
Common Stock, as applicable, sufficient to pay all amounts due (and shares of Common Stock
deliverable following conversion, if applicable) on all of such Securities (other than any
Securities that shall have been mutilated, destroyed, lost or stolen and in lieu of or in
substitution for which other Securities shall have been authenticated and delivered) not
theretofore canceled or delivered to the Trustee for cancellation, including principal and
interest, including Additional Interest, if any, due, accompanied, except in the event the
Securities are due and payable solely in cash upon a Fundamental Change Repurchase Date, by a
verification report as to the sufficiency of the deposited amount from an independent certified
accountant or
other financial professional satisfactory to the Trustee, and if the Company shall also pay or
cause to be paid all other sums payable hereunder by the Company, then this Indenture shall cease
to be of further effect (except as to (i) remaining rights of registration of transfer,
substitution and exchange and conversion of Securities, (ii) rights hereunder of Securityholders to
receive payments of principal of and interest, including Additional Interest, if any, on, the
Securities and the other rights, duties and obligations of Securityholders, as beneficiaries hereof
with respect to the amounts, if any, so deposited with the Trustee and (iii) the rights,
obligations and immunities of the Trustee hereunder), and the Trustee, on written demand of the
Company accompanied by an Officers’ Certificate and an Opinion of Counsel as required by Section
1.02 and at the cost and expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture; the Company, however, hereby agrees to reimburse the
Trustee for any costs or expenses thereafter reasonably and properly incurred by the Trustee and to
compensate the Trustee for any services thereafter reasonably and properly rendered by the Trustee
in connection with this Indenture or the Securities.

     Section 12.02. Deposited Monies to be Held in Trust by Trustee. Subject to Section 12.04,
all monies deposited with the Trustee pursuant to Section 12.01 shall be held in trust for the sole
benefit of the Securityholders, and such monies shall be applied by the Trustee to the payment,
either directly or through any paying agent (including the Company if acting as its own paying
agent), to the Holders of the particular Securities for the payment or redemption of which such

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monies have been deposited with the Trustee, of all sums due and to become due thereon for
principal and interest, including Additional Interest, if any.

     Section 12.03. Paying Agent to Repay Monies Held. Upon the satisfaction and discharge of
this Indenture, all monies then held by any paying agent of the Securities (other than the Trustee)
shall, upon written request of the Company, be repaid to it or paid to the Trustee, and thereupon
such paying agent shall be released from all further liability with respect to such monies.

     Section 12.04. Return of Unclaimed Monies. Subject to the requirements of applicable law,
any monies deposited with or paid to the Trustee for payment of the principal of or interest,
including Additional Interest, if any, on Securities and not applied but remaining unclaimed by the
Holders of Securities for two years after the date upon which the principal of or interest,
including Additional Interest, if any, on such Securities, as the case may be, shall have become
due and payable, shall be repaid to the Company by the Trustee on demand and all liability of the
Trustee shall thereupon cease with respect to such monies; and the Holder of any of the Securities
shall thereafter look only to the Company for any payment that such Holder may be entitled to
collect unless an applicable abandoned property law designates another Person.

     Section 12.05. Reinstatement. If the Trustee or the paying agent is unable to apply any
money in accordance with Section 12.02 by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such application, the
Company’s obligations under this
Indenture and the Securities shall be revived and reinstated as though no deposit had occurred
pursuant to Section 12.01 until such time as the Trustee or the paying agent is permitted to apply
all such money in accordance with Section 12.02; provided, however, that if the Company makes any
payment of interest on or principal of any Security following the reinstatement of its obligations,
the Company shall be subrogated to the rights of the Holders of such Securities to receive such
payment from the money held by the Trustee or paying agent.

ARTICLE 13

Supplemental Indentures

     Section 13.01. Supplemental Indentures Without Consent of Holders. Without the consent of
any Holders, the Company, when authorized by a Board Resolution, and the Trustee, at any time and
from time to time, may enter into one or more indentures supplemental hereto, in form satisfactory
to the Trustee, for any of the following purposes (including to amend the terms and conditions of
the Securities):

96

 

     (i) to cure any ambiguity, omission, defect or inconsistency contained herein;

     (ii) to provide for the assumption by a successor corporation, partnership, trust or
limited liability company of the obligations of the Company contained herein;

     (iii) to provide for uncertificated Securities in addition to or in place of
certificated Securities; provided that such uncertificated Securities are issued in
registered form for purposes of Section 163(f) of the Code, or in a manner such that the
uncertificated Securities are described in Section 163(f)(2)(B) of the Code;

     (iv) to add guarantees with respect to the Securities;

     (v) to secure the Securities;

     (vi) to add to the covenants or Events of Defaults of the Company for the benefit of
the Holders, or to surrender any right or power herein conferred upon the Company;

     (vii) to add or modify any other provision herein with respect to matters or
questions arising hereunder which the Company and the Trustee may deem necessary or
desirable and which does not materially and adversely affect the rights of any Holder;

     (viii) to modify, eliminate or add to the provisions of this Indenture to such extent
as shall be necessary to effect the qualifications of this Indenture or any supplemental
indenture under the Trust Indenture Act, or under any similar federal statute hereafter
enacted; or

     (ix) to conform this Indenture and the form or terms of the Securities to the section
entitled “Description of Notes” as set forth in the final offering memorandum related to
the Securities dated October 3, 2006; or

     (x) to provide for conversion rights of Holders of Securities if any reclassification
or change of the Company’s Common Stock or any Fundamental Change occurs.

     Section 13.02. Supplemental Indentures With Consent of Holders. With the consent of the
Holders of not less than a majority in aggregate Principal Amount of the Outstanding Securities, by
Act of said Holders delivered to the Company and the Trustee (including, without limitation,
consents obtained in connection with a purchase of, or tender offer or exchange offer for,
Securities), the Company, when authorized by a Board Resolution, and the Trustee may enter

97

 

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 under this Indenture; provided, however, that no such supplemental
indenture shall, without the consent of the Holder of each Outstanding Security affected thereby,

     (i) reduce the percentage in aggregate Principal Amount of Securities whose Holders
must consent to an amendment or waiver;

     (ii) reduce the rate or extend the stated time of payment of any interest, including
Additional Interest, if any, on any Security;

     (iii) reduce the Principal Amount of, or extend the Stated Maturity of, any Security;

     (iv) make any change that adversely affects the conversion rights of any Securities;

     (v) reduce the Fundamental Change Purchase Price of any Security or amend or modify
in any manner adverse to the Holders of Securities the Company’s obligation to make such
payments, whether through an amendment or waiver of provisions in the covenants,
definitions or otherwise;

     (vi) make any Security payable in money other than that stated in such Security;

     (vii) impair the right of a Securityholder to receive payment of principal and
interest, including Additional Interest, if any, on such Holder’s Securities on or after
the due dates thereof or to institute a suit for the enforcement of any payment on or with
respect to such Securityholder’s Securities;

     (viii) modify any of the provisions of this Section 13.02 or Section 7.12, except to
increase any such percentage or to provide that
certain other provisions of this Indenture cannot be modified or waived without the
consent of the Holder of each Outstanding Security affected thereby.

     It shall not be necessary for any Act of Holders under this Section 13.02 to approve the
particular form of any proposed supplemental indenture, but it shall be sufficient if such Act
shall approve the substance thereof.

     Section 13.03. Execution of Supplemental Indentures. In executing, or accepting the
additional trusts created by, any supplemental indenture permitted by this Article 13 or the
modifications thereby of the trusts created by this

98

 

Indenture, the Trustee shall be provided with,
and (subject to Section 10.01) shall be fully protected in relying upon, in addition to the
documents required by Section 1.02, an Opinion of Counsel stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture. Subject to the preceding
sentence, the Trustee shall sign such supplemental indenture if the same does not adversely affect
the Trustee’s own rights, duties or immunities under this Indenture or otherwise. The Trustee may,
but shall not be obligated to, enter into any such supplemental indenture that adversely affects
the Trustee’s own rights, duties or immunities under this Indenture or otherwise.

     Section 13.04. Effect of Supplemental Indentures. Upon the execution of any supplemental
indenture under this Article 13, this Indenture shall be modified in accordance therewith, and such
supplemental indenture shall form a part of this Indenture for all purposes; and every
Securityholder theretofore or thereafter authenticated and delivered hereunder shall be bound
thereby.

     Section 13.05. Conformity with Trust Indenture Act. Every supplemental indenture executed
pursuant to this Article shall conform to the requirements of the Trust Indenture Act.

     Section 13.06. Reference in Securities to Supplemental Indentures. Securities authenticated
and delivered after the execution of any supplemental indenture pursuant to this Article 13 shall
bear a notation in form approved by the Trustee as to any matter provided for in such supplemental
indenture. If the Company shall so determine, new Securities so modified as to conform, in the
opinion of the Trustee and the Company, to any such supplemental indenture may be prepared and
executed by the Company and authenticated and delivered by the Trustee in exchange for Outstanding
Securities.

     Section 13.07. Notice to Holders of Supplemental Indentures. The Company shall cause notice
of the execution of any supplemental indenture to be mailed to each Securityholder, at his address
appearing on the Security Register provided for in this Indenture, within 20 days after execution
thereof. Failure to deliver such notice, or any defect in such notes, shall not affect the legality
or validity of such supplemental indenture.

ARTICLE 14

Miscellaneous

     Section 14.01. Communication by Holders with other Holders. Holders may communicate pursuant
to TIA § 312(b) with other Holders with respect to their rights under this Indenture or the
Securities. The Company, the Trustee, the Security Registrar and anyone else shall have the
protection of TIA § 312(c).

99

 

     Section 14.02. When Securities Are Disregarded. In determining whether the Holders of the
required Principal Amount of Securities have concurred in any direction, waiver or consent,
Securities owned by the Company or by any Person directly or indirectly controlling or controlled
by or under direct or indirect common control with the Company shall be disregarded and deemed not
to be outstanding, except that, for the purpose of determining whether the Trustee shall be
protected in relying on any such direction, waiver or consent, only Securities which a Trust
Officer of the Trustee actually knows are so owned shall be so disregarded. Also, subject to the
foregoing, only Securities outstanding at the time shall be considered in any such determination.

     Section 14.03. Rules by Trustee, Paying Agent and Security Registrar. The Trustee may make
reasonable rules for action by, or a meeting of, Holders. The Security Registrar and the Paying
Agent may make reasonable rules for their functions.

     Section 14.04. Successors. All agreements of the Company in this Indenture and the
Securities shall bind their respective successors. All agreements of the Trustee in this Indenture
shall bind its successors.

     Section 14.05. Multiple Originals. The parties may sign any number of copies of this
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement. One signed copy is enough to prove this Indenture.

     Section 14.06. Qualification of Indenture. The Company shall qualify this Indenture under
the TIA in accordance with the terms and conditions of the Registration Rights Agreement and shall
pay all reasonable costs and expenses (including attorneys’ fees and expenses for the Company, the
Trustee and the Holders) incurred in connection therewith, including, but not limited to, costs and
expenses of qualification of this Indenture and the Securities and the printing of this Indenture
and the Securities.

     Section 14.07. Calculations. Except as otherwise provided herein, the Company will be
responsible for making all calculations called for under the Indenture and the Securities. The
Company will make all such calculations in good faith and, absent manifest error, its calculations
will be final and binding on Holders. The Company upon request will provide a schedule of its
calculations to each of the Trustee and the Conversion Agent, and each of the Trustee and
Conversion Agent is entitled to rely conclusively upon the accuracy of the Company’s calculations
without independent verification. The Trustee will deliver a copy of such schedule to any Holder
upon the request of such Holder.

     Section 14.08. Waiver of Jury Trial. EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST

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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, THE NOTES OR THE TRANSACTION
CONTEMPLATED THEREBY.

     Section 14.09. Force Majeure. In no event shall the Trustee be responsible or liable for any
failure or delay in the performance of its obligations hereunder arising out of or caused by,
directly or indirectly, forces beyond its control, including, without limitation, strikes, work
stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural
catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications
or computer (software or hardware) services; it being understood that the Trustee shall use
reasonable efforts which are consistent with accepted practices in the banking industry to resume
performance as soon as practicable under the circumstances.

[Remainder of the page intentionally left blank]

101

 

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

	 	 	 	 	 	 	 
	 	 	WORLD ACCEPTANCE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Kelly Malson Snape	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Kelly Malson Snape	 	 
	 

	 	Title:
	 	Chief Financial Officer	 	 

[Trustee Signature Follows]

 

 

	 	 	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Patrick L. Teague	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Patrick L. Teague	 	 
	 

	 	Title:
	 	Authorized Representative	 	 

 

 

SCHEDULE A

The following table sets forth the number of Additional Shares to be added to the Conversion Rate
per $1,000 Principal Amount of Securities pursuant to Section 6.05 of this Indenture:

Stock price

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Effective date
	 	$	46.23	 	 	$	50.00	 	 	$	55.00	 	 	$	60.00	 	 	$	65.00	 	 	$	70.00	 	 	$	75.00	 	 	$	80.00	 	 	$	85.00	 	 	$	90.00	 	 	$	95.00	 	 	$	100.00	 	 	$	105.00	 	 	$	110.00	 
	 	 	 
	October 10, 2006
	 	 	5.6081	 	 	 	4.8543	 	 	 	4.0523	 	 	 	3.4291	 	 	 	2.9406	 	 	 	2.5464	 	 	 	2.2259	 	 	 	1.9622	 	 	 	1.7429	 	 	 	1.5586	 	 	 	1.4024	 	 	 	1.2689	 	 	 	1.1539	 	 	 	1.0542	 
	October 1, 2007
	 	 	5.6081	 	 	 	4.7547	 	 	 	3.9080	 	 	 	3.2574	 	 	 	2.7493	 	 	 	2.3470	 	 	 	2.0242	 	 	 	1.7622	 	 	 	1.5473	 	 	 	1.3692	 	 	 	1.2202	 	 	 	1.0946	 	 	 	0.9877	 	 	 	0.8961	 
	October 1, 2008
	 	 	5.6081	 	 	 	4.6033	 	 	 	3.6949	 	 	 	3.0074	 	 	 	2.4797	 	 	 	2.0695	 	 	 	1.7468	 	 	 	1.4903	 	 	 	1.2842	 	 	 	1.1170	 	 	 	0.9800	 	 	 	0.8669	 	 	 	0.7726	 	 	 	0.6934	 
	October 1, 2009
	 	 	5.6081	 	 	 	4.3779	 	 	 	3.3816	 	 	 	2.6437	 	 	 	2.0921	 	 	 	1.6761	 	 	 	1.3595	 	 	 	1.1166	 	 	 	0.9286	 	 	 	0.7818	 	 	 	0.6662	 	 	 	0.5743	 	 	 	0.5005	 	 	 	0.4408	 
	October 1, 2010
	 	 	5.6081	 	 	 	4.0549	 	 	 	2.8981	 	 	 	2.0720	 	 	 	1.4855	 	 	 	1.0711	 	 	 	0.7793	 	 	 	0.5741	 	 	 	0.4299	 	 	 	0.3284	 	 	 	0.2565	 	 	 	0.2055	 	 	 	0.1688	 	 	 	0.1422	 
	October 1, 2011
	 	 	5.6081	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 

 

 

EXHIBIT A

Form of Fundamental Change Purchase Notice

                                        , ____

U.S. Bank National Association

c/o U.S. Bank Corporate Trust Services

214 N. Tryon Street, 27th Floor

Charlotte, NC 28202

Attention: NC Bond Admin

	 	 	 	 	 
	 

	 	Re:
	 	World Acceptance Corporation (the “Company”)
3.00% Convertible Senior Subordinated Notes due 2011

     This is a Fundamental Change Purchase Notice as defined in Section 5.01(a) of the Indenture
dated as of October 10, 2006 (the “Indenture”) between the Company and U.S. Bank National
Association, as Trustee. Terms used but not defined herein shall have the meanings ascribed to
them in the Indenture.

Certificate No(s). of Securities:                                                             
(if certificated)

     I intend to deliver the following aggregate Principal
Amount of Securities for purchase by the Company pursuant to
Section 5.01 of the Indenture (in multiples of $1,000):

$                                                            

     I hereby agree that the Securities will be purchased as of the Fundamental Change Purchase
Date pursuant to the terms and conditions thereof and of the Indenture.

Signed:                                         

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EXHIBIT B

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE
FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER AGREES (1) THAT IT WILL NOT WITHIN THE
LATER OF (X) TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY AND (Y) THREE MONTHS AFTER IT
CEASES TO BE AN AFFILIATE (WITHIN THE MEANING OF RULE 144 ADOPTED UNDER THE SECURITIES ACT) OF THE
ISSUER, RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY OR THE COMMON STOCK ISSUABLE
UPON CONVERSION OF SUCH SECURITY, EXCEPT (A) TO THE ISSUER; (B) UNDER A REGISTRATION STATEMENT THAT
HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT; (C) TO A PERSON THE SELLER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A ADOPTED UNDER THE SECURITIES
ACT) THAT IS PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER QUALIFIED INSTITUTIONAL
BUYER AND TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, ALL IN
COMPLIANCE WITH RULE 144A (IF AVAILABLE); OR (D) UNDER ANY OTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT; AND (2) THAT IT WILL, PRIOR TO ANY TRANSFER OF
THIS SECURITY WITHIN THE LATER OF (X) TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY AND
(Y) THREE MONTHS AFTER IT CEASES TO BE AN AFFILIATE (WITHIN THE MEANING OF RULE 144 ADOPTED UNDER
THE SECURITIES ACT) OF THE ISSUER, FURNISH TO THE TRUSTEE AND THE ISSUER SUCH CERTIFICATIONS, LEGAL
OPINIONS OR OTHER INFORMATION AS MAY BE REQUIRED PURSUANT TO THE INDENTURE TO CONFIRM THAT SUCH
TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

106

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