Document:

exv4w4

Exhibit 4.4

REGISTRATION RIGHTS AGREEMENT

     This REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of December
30, 2010, by and between McMoRan Exploration Co., a Delaware corporation (“Seller”), and
Freeport-McMoRan Preferred LLC, a Delaware limited liability company (“Purchaser”). Purchaser and
Seller are sometimes referred to collectively as the “Parties” and individually as a “Party.”

RECITALS:

     WHEREAS, Purchaser and Seller have entered into that certain Stock Purchase Agreement (the
“Purchase Agreement”), dated as of September 19, 2010, by and between Purchaser, Seller, and
Freeport-McMoRan Copper & Gold Inc., a Delaware corporation (“Freeport”) pursuant to which Seller
has agreed to issue and sell, and Purchaser has agreed to purchase and accept, shares of Seller’s
5.75% convertible perpetual preferred stock (the “Preferred Stock”), which is convertible into
shares of Seller’s common stock, par value $0.01 per share (the “Common Stock”); and

     WHEREAS, to induce Purchaser to enter into the Purchase Agreement and to consummate the
transactions contemplated thereby, Purchaser has required that Seller agree, and Seller has agreed,
to enter into this Agreement and abide by the covenants and obligations with respect to the
Registrable Securities as set forth herein; and

     NOW, THEREFORE, in consideration of the premises and of the mutual promises, representations,
warranties, covenants, conditions and agreements contained herein, and for other valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as
follows:

ARTICLE 1

DEFINITIONS

     Section 1.1 Definitions. Capitalized terms used herein without definition shall have
the meanings given to them in the Purchase Agreement. The terms set forth below are used herein as
so defined:

     “Agreement” has the meaning specified in the introductory paragraph of this Agreement.

     “Common Stock” has the meaning specified in the recitals of this Agreement.

     “Effectiveness Period” has the meaning specified in Section 2.1(b) of this Agreement.

     “Holder” means the record holder of any Registrable Securities; provided, that no such record
holder shall be deemed to be a “Holder” if the rights under Article II hereof have not been
transferred or assigned to such record holder in accordance with Section 2.11.

     “Included Registrable Securities” has the meaning specified in Section 2.2(a) of this
Agreement.

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     “Losses” has the meaning specified in Section 2.9(a) of this Agreement.

     “Managing Underwriter” means, with respect to any Underwritten Offering, the book-running lead
manager(s) of such Underwritten Offering.

     “NYSE” means The New York Stock Exchange, Inc.

     “Parity Securities” has the meaning specified in Section 2.2(b) of this Agreement.

     “Preferred Stock” has the meaning specified in the recitals of this Agreement.

     “Purchase Agreement” has the meaning specified in the recitals of this Agreement.

     “Purchaser” has the meaning specified in the introductory paragraph of this Agreement.

     “Registrable Securities” means the Preferred Stock, the Common Stock issuable upon conversion
of the Preferred Stock and any additional securities issued with respect to such shares of
Preferred Stock or Common Stock.

     “Registration Expenses” has the meaning specified in Section 2.8(b) of this Agreement.

     “Registration Statement” means any registration statement of Seller filed under the Securities
Act that covers the resale of any of the Registrable Securities pursuant to the provisions of this
Agreement, amendments and supplements to such Registration Statement, including post-effective
amendments, all exhibits and all material incorporated by reference in such Registration Statement.

     “SEC” means the United States Securities and Exchange Commission.

     “Seller” has the meaning specified in the introductory paragraph of this Agreement.

     “Selling Expenses” has the meaning specified in Section 2.8(b) of this Agreement.

     “Selling Holder” means a Holder who is selling Registrable Securities pursuant to a
registration statement.

     “Selling Holder Indemnified Persons” has the meaning specified therefore in Section
2.9(a) of this Agreement.

     “Underwritten Offering” means an offering (including an offering pursuant to a Registration
Statement) in which shares of Preferred Stock or Common Stock are sold to an underwriter on a firm
commitment basis for reoffering to the public or an offering that is a “bought deal” with one or
more investment banks.

     Section 1.2 Registrable Securities.
Any Registrable Security will cease to be a Registrable Security upon the earliest of (a)
when a registration statement covering such Registrable Security becomes or has been declared
effective by the SEC and such Registrable Security has been sold or disposed of pursuant to such
effective registration statement; (b) when

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such Registrable Security has been disposed of pursuant
to any section of Rule 144 (or any similar provision then in effect) under the Securities Act or
such Registrable Security is eligible to be disposed of by the Holder thereof under Rule 144
without restriction as to volume; (c) when such Registrable Security is held by Seller or one of
its subsidiaries; and (d) when such Registrable Security has been sold in a private transaction in
which the transferor’s rights under this Agreement are not assigned to the transferee of such
securities pursuant to Section 2.11 hereof.

ARTICLE 2

REGISTRATION RIGHTS

     Section 2.1 Registration.

          (a) Not later than 60 days after the Closing Date, Seller shall file with the SEC an automatic
shelf Registration Statement (or, if Seller is not eligible to use an automatic shelf Registration
Statement, a Registration Statement on Form S-3 or such other form as is then available to Seller
to effect a registration for resale of the Registrable Securities) covering the resale of the
Registrable Securities. Any Registration Statement shall provide for the resale of Registrable
Securities pursuant to any method or combination of methods legally available to, and requested by,
the Holder of any Registrable Securities covered by such Registration Statement. If such
Registration Statement is not automatically effective upon filing, then Seller shall use its
commercially reasonable efforts to cause such Registration Statement to be declared effective not
later than 240 days after the Closing Date.

          (b) Seller shall use its commercially reasonable efforts to cause a Registration Statement
filed pursuant to this Section 2.1 to be effective, supplemented, amended and replaced to
the extent necessary to ensure that it is available for the resale of all Registrable Securities by
the Holders until the earliest date on which any of the following occurs: (i) all Registrable
Securities covered by such Registration Statement have ceased to be Registrable Securities and (ii)
there are no longer any Registrable Securities outstanding (the “Effectiveness Period”). Subject
to Section 2.3, upon the occurrence of any event that would cause the Registration
Statement or the prospectus contained therein (i) to contain an untrue statement of material fact
or omit to state any material fact necessary to make the statements therein not misleading or (ii)
not to be effective and usable for the resale of all or part of the Registrable Securities by the
Holders, Seller shall promptly file an appropriate amendment to the Registration Statement curing
such defect, and, if SEC review is required, use its commercially reasonable efforts to cause such
amendment to be declared effective as soon as practicable. Seller shall prepare and file with the
SEC such amendments and post-effective amendments to the Registration Statement as may be necessary
to keep such Registration Statement effective during the Effective Period; cause the prospectus to
be supplemented by any required prospectus supplement, and as so supplemented to be filed pursuant
to Rule 424 under the Securities Act, and to comply fully with the rules and regulations under the
Securities Act in a timely manner; and comply with the
provisions of the Securities Act with respect to the disposition of all securities covered by
the Registration Statement during the Effectiveness Period.

          (c) Subject to Section 2.3, a Registration Statement when effective will comply as to
form in all material respects with all applicable requirements of the Securities Act

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and the
Exchange Act and will not contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein not
misleading (and, in the case of any prospectus contained in such Registration Statement, in the
light of the circumstances under which a statement is made). As soon as practicable following the
date that a Registration Statement becomes effective, but in any event within two (2) Business Days
of such date, Seller shall provide Purchaser with written notice of the effectiveness of such
Registration Statement.

     Section 2.2 Piggyback Rights.

          (a) Participation. If at any time Seller proposes to file (i) a shelf registration
statement other than a Registration Statement contemplated by Section 2.1, (ii) a
prospectus supplement to an effective shelf registration statement, other than a Registration
Statement contemplated by Section 2.1, and Holders may be included without the filing of a
post-effective amendment thereto that requires Seller to request acceleration of the same from the
SEC, or (iii) a registration statement, other than a shelf registration statement, in any case, for
the sale of Preferred Stock or Common Stock in an Underwritten Offering for its own account and/or
another Person, then as soon as practicable following the engagement of counsel by Seller to
prepare the documents to be used in connection with an Underwritten Offering, Seller shall give
written notice of such proposed Underwritten Offering to each Holder holding outstanding
Registrable Securities and such notice shall offer such Holder the opportunity to include in such
Underwritten Offering such number of Registrable Securities (the “Included Registrable Securities”)
as each such Holder may request in writing; provided, however, that if Seller has been advised by
the Managing Underwriter that the inclusion of Registrable Securities for sale for the benefit of
the Holders will have an adverse effect on the price, timing (other than by reason of the notice
periods set forth herein) or distribution of the Preferred Stock or Common Stock in the
Underwritten Offering, then (a) Seller shall not be required to offer such opportunity to the
Holders, in which case Seller shall provide the Holders written advisement of their exclusion
(which notice need not include any explanation of the reasons for the exclusion) from the
Underwritten Offering no later than 24 hours after the pricing of the Underwritten Offering, or (b)
if any Registrable Securities can be included in the Underwritten Offering in the opinion of the
Managing Underwriter, then the amount of Registrable Securities to be offered for the accounts of
Holders shall be determined based on the provisions of Section 2.2(b), in which case Seller
shall provide the Holders written advisement of their reduced participation (which notice need not
include any explanation of the reasons for the reduced participation) in the Underwritten Offering
no later than 24 hours after the pricing of the Underwritten Offering. Any notice required to be
provided in this Section 2.2(a) to Holders shall be provided on a Business Day pursuant to
Section 3.1 hereof and receipt of such notice shall be confirmed by the Holder (provided
that the failure of the Holder to confirm receipt shall not affect the validity or timing of
delivery of such notice). Each such Holder shall have two (2) Business Days (or one
(1) Business Day in connection with any overnight or bought Underwritten Offering) after
written notice has been delivered to request in writing the inclusion of Registrable Securities in
the Underwritten Offering. If no written request for inclusion from a Holder is received within
the specified time, each such Holder shall have no further right to participate in such
Underwritten Offering. If, at any time after giving written notice of its intention to undertake
an Underwritten Offering and prior to the closing of such Underwritten Offering, Seller shall

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determine for any reason not to undertake or to delay such Underwritten Offering, Seller may, at
its election, give written notice of such determination to the Selling Holders and, (x) in the case
of a determination not to undertake such Underwritten Offering, shall be relieved of its obligation
to sell any Included Registrable Securities in connection with such terminated Underwritten
Offering, and (y) in the case of a determination to delay such Underwritten Offering, shall be
permitted to delay offering any Included Registrable Securities for the same period as the delay in
the Underwritten Offering. Any Selling Holder shall have the right to withdraw such Selling
Holder’s request for inclusion of such Selling Holder’s Registrable Securities in such Underwritten
Offering by giving written notice to Seller of such withdrawal at least one Business Day prior to
the time of pricing of such Underwritten Offering.

          (b) Priority. If the Managing Underwriter or Underwriters of any proposed
Underwritten Offering of Preferred Stock or Common Stock included in an Underwritten Offering
involving Included Registrable Securities advises Seller that the total amount of Registrable
Securities that the Selling Holders and any other Persons intend to include in such offering
exceeds the number that can be sold in such offering without being likely to have an adverse effect
on the price, timing (other than by reason of the notice periods set forth herein) or distribution
of the Preferred Stock or Common Stock offered, then the Preferred Stock and Common Stock to be
included in such Underwritten Offering shall include the number of Registrable Securities that such
Managing Underwriter or Underwriters advises Seller can be sold without having such adverse effect,
with such number to be allocated (i) first, to Seller and (ii) second, pro rata among the Selling
Holders who have requested participation in such Underwritten Offering and any other holder of
securities of Seller having rights of registration on parity with the Registrable Securities (the
“Parity Securities”). The pro rata allocations for each Selling Holder who have requested
participation in such Underwritten Offering shall be the product of (a) the aggregate number of
Registrable Securities proposed to be sold by all Selling Holders in such Underwritten Offering
multiplied by (b) the fraction derived by dividing (x) the number of Registrable Securities owned
on the Closing Date by such Selling Holder by (y) the aggregate number of Registrable Securities
owned on the Closing Date by all Selling Holders and holders of Parity Securities participating in
the Underwritten Offering.

          (c) Termination of Piggyback Registration Rights. Each Holder’s rights under
Section 2.2 shall terminate upon such Holder ceasing to hold at least 1,000,000 of the then
outstanding Registrable Securities.

     Section 2.3 Delay Rights.

     Notwithstanding anything to the contrary contained herein, Seller may, upon written notice to
any Selling Holder whose Registrable Securities are included in a Registration Statement or other
registration statement contemplated by this Agreement, suspend such Selling Holder’s use of any
prospectus which is a part of a Registration Statement or other registration
statement (in which event the Selling Holder shall discontinue sales of the Registrable
Securities pursuant to such Registration Statement or other registration statement but may settle
any previously made sales of Registrable Securities) if (i) Seller is pursuing an acquisition,
merger, reorganization, disposition or other similar transaction and Seller determines in good
faith that Seller’s ability to pursue or consummate such a transaction would be materially
adversely affected by any required disclosure of such transaction in a Registration Statement or
other

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registration statement; (ii) Seller has experienced some other material non-public event the
disclosure of which at such time, in the good faith judgment of the Board of Directors of Seller,
would materially and adversely affect Seller; or (iii) Seller would be required to prepare and file
any financial statements (other than those it customarily prepares or before it customarily files
such financial statements); provided, however, that in no event shall the Selling Holders be
suspended from selling Registrable Securities pursuant to a Registration Statement or other
registration statement for a period that exceeds an aggregate of 45 days in any 180-day period or
90 days in any 365-day period, in each case, exclusive of days covered by any lock-up agreement
executed by Purchaser in connection with any Underwritten Offering. Upon disclosure of such
information or the termination of the condition described above, Seller shall provide prompt
written notice to the Selling Holders whose Registrable Securities are included in a Registration
Statement, and shall promptly terminate any suspension of sales it has put into effect and shall
take such other reasonable actions to permit registered sales of Registrable Securities as
contemplated in this Agreement.

     Section 2.4 Underwritten Offerings. In the event that one or more Holders elects to
dispose of at least 1,000,000 Registrable Securities under a Registration Statement pursuant to an
Underwritten Offering, Seller shall, upon request by such Holders, retain underwriters in order to
permit such Holders to effect such sale though an Underwritten Offering; provided, that Seller
shall not be required to effect more than three Underwritten Offerings pursuant to this Section
2.4 and the Holders shall be limited to one such request in any six-month period. In
connection with any Underwritten Offering under this Agreement, the holders of a majority of the
Registrable Securities being disposed of pursuant to the Underwritten Offering shall be entitled to
select the Managing Underwriter or Underwriters for such Underwritten Offering, subject to the
consent of Seller, which shall not be unreasonably withheld, delayed or conditioned. In connection
with an Underwritten Offering contemplated by this Agreement in which a Selling Holder
participates, each Selling Holder and Seller shall be obligated to enter into an underwriting
agreement that contains such representations, covenants, indemnities and other rights and
obligations as are customary in underwriting agreements for firm commitment offerings of
securities. No Selling Holder may participate in such Underwritten Offering unless such Selling
Holder agrees to sell its Registrable Securities on the basis provided in such underwriting
agreement and completes and executes all questionnaires, powers of attorney and other documents
reasonably required under the terms of such underwriting agreement. Each Selling Holder may, at
its option, require that any or all of the representations and warranties by, and the other
agreements on the part of, Seller to and for the benefit of such underwriters also be made to and
for such Selling Holder’s benefit and that any or all of the conditions precedent to the
obligations of such underwriters under such underwriting agreement also be conditions precedent to
its obligations. No Selling Holder shall be required to make any representations or warranties to
or agreements with Seller or the
underwriters other than representations, warranties or agreements regarding the identity of
such Selling Holder, its authority to enter into such underwriting agreement and to sell, and its
ownership of, the securities being registered on its behalf, its intended method of distribution
and any other representation required by Law. If any Selling Holder disapproves of the terms of an
underwriting, such Selling Holder may elect to withdraw therefrom by notice to Seller and the
Managing Underwriter; provided, however, that such withdrawal must be made at least one Business
Day prior to the time of pricing of such

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Underwritten Offering. No such withdrawal or abandonment
shall affect Seller’s obligation to pay Registration Expenses.

     Section 2.5 Sale Procedures. In connection with its obligations under this
Article 2, Seller will, as expeditiously as possible:

          (a) subject to Section 2.3, prepare and file with the SEC such amendments and
supplements to, and replacements of, a Registration Statement and the prospectus used in connection
therewith as may be necessary to keep such Registration Statement effective for the Effectiveness
Period and as may be necessary to comply with the provisions of the Securities Act with respect to
the disposition of all Registrable Securities covered by such Registration Statement;

          (b) if a prospectus supplement will be used in connection with the marketing of an
Underwritten Offering from a Registration Statement and the Managing Underwriter at any time shall
notify Seller in writing that, in the sole judgment of such Managing Underwriter, inclusion of
detailed information to be used in such prospectus supplement is of material importance to the
success of the Underwritten Offering of such Registrable Securities, Seller shall use its
commercially reasonable efforts to include such information in such prospectus supplement;

          (c) furnish to each Selling Holder (i) before filing a Registration Statement or any other
registration statement contemplated by this Agreement or any supplement or amendment thereto,
copies of reasonably complete drafts of all such documents proposed to be filed (including
exhibits), and provide each such Selling Holder the opportunity to object to any information
pertaining to such Selling Holder and its plan of distribution that is contained therein and make
the corrections reasonably requested by such Selling Holder with respect to such information prior
to filing such Registration Statement or such other registration statement or supplement or
amendment thereto, and (ii) such number of copies of such Registration Statement or such other
registration statement and the prospectus included therein and any supplements and amendments
thereto as such Selling Holder may reasonably request in order to facilitate the public sale or
other disposition of the Registrable Securities covered by such Registration Statement or other
registration statement;

          (d) if applicable, use its commercially reasonable efforts to register or qualify the
Registrable Securities covered by a Registration Statement or any other registration statement
contemplated by this Agreement under the securities or blue sky laws of such jurisdictions as the
Selling Holders or, in the case of an Underwritten Offering, the Managing Underwriter, shall
reasonably request; provided, however, that Seller will not be required to qualify generally to
transact business in any jurisdiction where it is not then required to so qualify or to take
any action that would subject it to general service of process in any such jurisdiction where it is
not then so subject;

          (e) promptly notify each Selling Holder, at any time when a prospectus relating thereto is
required to be delivered by any of them under the Securities Act, of (i) the filing of a
Registration Statement or any other registration statement contemplated by this Agreement or any
prospectus or prospectus supplement to be used in connection therewith, or

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any amendment or
supplement thereto, and, with respect to such Registration Statement or any other registration
statement or any post-effective amendment thereto, when the same has become effective; and (ii) the
receipt of any written comments from the SEC with respect to any filing referred to in clause
(i) of this Section 2.5(e) and any written request by the SEC for amendments or
supplements to a Registration Statement or any other registration statement or any prospectus or
prospectus supplement thereto;

          (f) immediately notify each Selling Holder, at any time when a prospectus relating thereto is
required to be delivered under the Securities Act, of (i) the prospectus or prospectus supplement
contained in a Registration Statement or any other registration statement contemplated by this
Agreement, as then in effect, including an untrue statement of a material fact or omitting to state
any material fact required to be stated therein or necessary to make the statements therein not
misleading (in the case of any prospectus contained therein, in the light of the circumstances
under which a statement is made); (ii) the issuance or threat of issuance by the SEC of any stop
order suspending the effectiveness of a Registration Statement or any other registration statement
contemplated by this Agreement, or the initiation of any proceedings for that purpose; or (iii) the
receipt by Seller of any notification with respect to the suspension of the qualification of any
Registrable Securities for sale under the applicable securities or blue sky laws of any
jurisdiction. Subject to Section 2.3, following the provision of such notice, Seller
agrees to use commercially reasonable efforts to, as promptly as practicable, amend or supplement
the prospectus or prospectus supplement or take other appropriate action so that the prospectus or
prospectus supplement does not include an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein not
misleading in the light of the circumstances then existing and to take such other commercially
reasonable action as is necessary to remove a stop order, suspension, threat thereof or proceedings
related thereto;

          (g) subject to appropriate confidentiality obligations, furnish to each Selling Holder copies
of any and all transmittal letters or other correspondence with the SEC or any other governmental
agency or self-regulatory body or other body having jurisdiction (including any domestic or foreign
securities exchange) relating to such offering of Registrable Securities;

          (h) in the case of an Underwritten Offering, use commercially reasonable efforts to furnish
upon request, (i) an opinion of counsel for Seller dated the date of the closing under the
underwriting agreement, and (ii) a “cold comfort” letter, dated the pricing date of such
Underwritten Offering and a letter of like kind dated the date of the closing under the
underwriting agreement, in each case, signed by the independent public accountants who have
certified Seller’s financial statements included or incorporated by reference into the applicable
registration statement, and each of the opinion and the “cold comfort” letter shall be in
customary form and covering substantially the same matters with respect to such registration
statement (and the prospectus and any prospectus supplement included therein) as have been
customarily covered in opinions of issuer’s counsel and in accountants’ letters delivered to the
underwriters in Underwritten Offerings of securities by Seller;

          (i) otherwise use its commercially reasonable efforts to comply with all applicable rules and
regulations of the SEC, and make available to its security holders, as soon as

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reasonably
practicable, an earnings statement, which earnings statement shall satisfy the provisions of
Section 11(a) of the Securities Act and Rule 158 promulgated thereunder;

          (j) make available to the appropriate representatives of the Managing Underwriter and Selling
Holders access to such information and Seller personnel as is reasonable and customary to enable
such parties to establish a due diligence defense under the Securities Act, provided that Seller
need not disclose any non-public information to any such representative unless and until such
representative has entered into a confidentiality agreement with Seller reasonably satisfactory to
Seller;

          (k) cause all such Registrable Securities registered pursuant to this Agreement to be listed
on each securities exchange or nationally recognized quotation system on which similar securities
issued by Seller are then listed;

          (l) use its commercially reasonable efforts to cause the Registrable Securities to be
registered with or approved by such other governmental agencies or authorities as may be necessary
by virtue of the business and operations of Seller to enable the Selling Holders to consummate the
disposition of such Registrable Securities;

          (m) in connection with any Underwritten Offering provided for hereunder, participate in “road
shows” and other marketing efforts as reasonably requested by the Selling Holders, provided that
Seller shall not be required to participate in more than two road shows or similar marketing
efforts in any 12-month period;

          (n) provide a transfer agent and registrar for all Registrable Securities covered by such
registration statement not later than the effective date of such registration statement; and

          (o) enter into customary agreements and take such other actions as are reasonably requested by
the Selling Holders or the underwriters, if any, in order to expedite or facilitate the disposition
of such Registrable Securities.

     Each Selling Holder, upon receipt of notice from Seller of the happening of any event of the
kind described in subsection (e) of this Section 2.5, shall forthwith discontinue
offers and sales of the Registrable Securities by means of a prospectus or prospectus supplement
until such Selling Holder’s receipt of the copies of the supplemented or amended prospectus
contemplated by subsection (e) of this Section 2.5 or until it is advised in
writing by Seller that the use of the prospectus may be resumed and has received copies of any
additional or supplemental filings incorporated by reference in the prospectus, and, if so directed
by Seller, such Selling Holder will, or will request the managing underwriter or underwriters, if
any, to deliver to Seller (at Seller’s expense) all copies in their possession or control, other
than permanent file copies then
in such Selling Holder’s possession, of the prospectus covering such Registrable Securities
current at the time of receipt of such notice.

     Section 2.6 Cooperation by Holders. Seller shall have no obligation to include
Registrable Securities of a Holder in a Registration Statement or in an Underwritten Offering
pursuant to Section 2.2(a) who has failed to timely furnish such information concerning
such Holder that Seller determines, after consultation with its counsel, is reasonably required in
order

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for the registration statement or prospectus supplement, as applicable, to comply with the
Securities Act.

     Section 2.7 Restrictions on Public Sale by Holders of Registrable Securities. For so
long as Registrable Securities in the aggregate represent more than 10% of the outstanding Common
Stock of Seller, each Holder of Registrable Securities agrees to enter into a customary letter
agreement with underwriters providing such Holder will not effect any public sale or distribution
of the Registrable Securities during the 90 calendar day period beginning on the date of a
prospectus or prospectus supplement filed with the SEC with respect to the pricing of an
Underwritten Offering, provided that (i) the duration of the foregoing restrictions shall be no
longer than the duration of the shortest restriction generally imposed by the underwriters on
Seller or the officers, directors or any other stockholder of Seller on whom a restriction is
imposed and (ii) the restrictions set forth in this Section 2.7 shall not apply to any
Registrable Securities that are included in such Underwritten Offering by such Holder.
Notwithstanding the foregoing, nothing in this Section 2.7 shall restrict the ability of
any Holder from disposing of its Registrable Securities pursuant to a Rule 10b5-1 plan.

     Section 2.8 Expenses.

          (a) Expenses. Seller will pay all Registration Expenses, including, in the case of an
Underwritten Offering, whether or not any sale is made pursuant to such Underwritten Offering.
Each Selling Holder shall pay its pro rata share of all Selling Expenses in connection with any
sale of its Registrable Securities hereunder, and Seller shall not be responsible for any Selling
Expenses. In addition, except as otherwise provided in Section 2.8 and Section 2.9
hereof, Seller shall not be responsible for legal fees incurred by Holders in connection with the
exercise of such Holders’ rights hereunder.

          (b) Certain Definitions. “Registration Expenses” means all reasonable expenses
incident to Seller’s performance under or compliance with this Agreement to effect the registration
of Registrable Securities on a Registration Statement pursuant to Section 2.1 or an
Underwritten Offering covered under this Agreement, and the disposition of such Registrable
Securities, including, without limitation, all registration, filing, securities exchange listing
and NYSE fees, all registration, filing, qualification and other fees and expenses of complying
with securities or blue sky laws, fees of the Financial Industry Regulatory Authority, Inc., fees
of transfer agents and registrars, all word processing, duplicating and printing expenses, any
transfer taxes and the fees and disbursements of counsel and independent public accountants for
Seller, including the expenses of any special audits or “cold comfort” letters required by or
incident to such performance and compliance. “Selling Expenses” means all underwriting fees,
discounts and selling commissions or similar fees or arrangements and transfer taxes allocable to
the sale of the Registrable Securities.

     Section 2.9 Indemnification.

          (a) By Seller. In the event of a registration of any Registrable Securities under the
Securities Act pursuant to this Agreement, Seller will indemnify and hold harmless each Selling
Holder thereunder, its directors, officers, employees and agents and each Person, if any, who
controls such Selling Holder within the meaning of the Securities Act and the

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Exchange Act, and its
directors, officers, employees or agents (collectively, the “Selling Holder Indemnified Persons”),
against any losses, claims, damages, expenses or liabilities (including reasonable attorneys’ fees
and expenses) (collectively, “Losses”), joint or several, to which such Selling Holder Indemnified
Person may become subject under the Securities Act, the Exchange Act or otherwise, insofar as such
Losses (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out
of or are based upon any untrue statement or alleged untrue statement of any material fact (in the
case of any prospectus, in light of the circumstances under which such statement is made) contained
in a Registration Statement or any other registration statement contemplated by this Agreement, any
preliminary prospectus, prospectus supplement, free writing prospectus or final prospectus
contained therein, or any amendment or supplement thereof, or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein (in the case of a prospectus, in light of the
circumstances under which they were made) not misleading, and will reimburse each such Selling
Holder Indemnified Person for any legal or other expenses reasonably incurred by them in connection
with investigating or defending any such Loss or actions or proceedings; provided, however, that
Seller will not be liable in any such case if and to the extent that any such Loss arises out of or
is based upon an untrue statement or alleged untrue statement or omission or alleged omission so
made in conformity with information furnished by such Selling Holder Indemnified Person in writing
specifically for use in a Registration Statement or such other registration statement, preliminary
prospectus, free writing prospectus or prospectus supplement, as applicable, it being understood
that a Selling Holder will only be required to furnish information regarding its legal name,
address, the number of securities being registered on its behalf and such other information as may
be required by Law. Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of such Selling Holder Indemnified Person, and shall survive the
transfer of such securities by such Selling Holder.

          (b) By Each Selling Holder. Each Selling Holder agrees severally and not jointly to
indemnify and hold harmless Seller, its directors, officers, employees and agents and each Person,
if any, who controls Seller within the meaning of the Securities Act or of the Exchange Act, and
its directors, officers, employees and agents, to the same extent as the foregoing indemnity from
Seller to the Selling Holders, but only with respect to information regarding such Selling Holder
furnished in writing by or on behalf of such Selling Holder expressly for inclusion in a
Registration Statement or any other registration statement
contemplated by this Agreement, any preliminary prospectus, prospectus supplement, free
writing prospectus or final prospectus contained therein, or any amendment or supplement thereof;
provided, however, that the liability of each Selling Holder shall not be greater in amount than
the dollar amount of the proceeds (net of any Selling Expenses) received by such Selling Holder
from the sale of the Registrable Securities giving rise to such indemnification.

          (c) Notice. Promptly after receipt by an indemnified party hereunder of notice of the
commencement of any action, such indemnified party shall, if a claim in respect thereof is to be
made against the indemnifying party hereunder, notify the indemnifying party in writing thereof,
but the omission so to notify the indemnifying party shall not relieve it from any liability that
it may have to any indemnified party other than under this Section 2.9 except to the extent
that the indemnifying party is prejudiced by such omission. In any action brought against

11

 

any
indemnified party, it shall notify the indemnifying party of the commencement thereof. The
indemnifying party shall be entitled to participate in and, to the extent it shall wish, to assume
and undertake the defense thereof with counsel reasonably satisfactory to such indemnified party
and, after notice from the indemnifying party to such indemnified party of its election so to
assume and undertake the defense thereof, the indemnifying party shall not be liable to such
indemnified party under this Section 2.9 for any legal expenses subsequently incurred by
such indemnified party in connection with the defense thereof other than reasonable costs of
investigation and of liaison with counsel so selected; provided, however, that, (i) if the
indemnifying party has failed to assume the defense or employ counsel reasonably acceptable to the
indemnified party or (ii) if the defendants in any such action include both the indemnified party
and the indemnifying party and counsel to the indemnified party shall have concluded that there may
be reasonable defenses available to the indemnified party that are different from or additional to
those available to the indemnifying party, or if the interests of the indemnified party reasonably
may be deemed to conflict with the interests of the indemnifying party, then the indemnified party
shall have the right to select a separate counsel, with the reasonable out-of-pocket expenses and
fees of such separate counsel and other reasonable out-of-pocket expenses related to such
participation to be reimbursed by the indemnifying party as incurred. Notwithstanding any other
provision of this Agreement, no indemnified party shall settle any action brought against it with
respect to which such indemnified party is entitled to indemnification hereunder without the
consent of the indemnifying party, unless the settlement thereof includes a complete release from
all liability of, the indemnifying party.

          (d) Contribution. If the indemnification provided for in this Section 2.9 is
held by a court or government agency of competent jurisdiction to be unavailable to any indemnified
party, then each such indemnifying party, in lieu of indemnifying such indemnified party, shall
contribute to the amount paid or payable by such indemnified party as a result of such Loss in such
proportion as is appropriate to reflect the relative fault of the indemnifying party on the one
hand and of such indemnified party on the other in connection with the statements or omissions that
resulted in such Losses, as well as any other relevant equitable considerations; provided, however,
that in no event shall such Selling Holder be required to contribute an aggregate amount in excess
of the lesser of (A) the amount which such Selling Holder would have been obligated to pay under
Section 2.9(b) if such indemnity was available to the indemnified party and (B) the dollar
amount of proceeds (net of Selling Expenses) received by such Selling Holder from the sale of
Registrable Securities giving rise to such
indemnification. The relative fault of the indemnifying party on the one hand and the
indemnified party on the other shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission or alleged omission to state
a material fact has been made by, or relates to, information supplied by such party, and the
Parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission. The Parties agree that it would not be just and equitable if
contributions pursuant to this paragraph were to be determined by pro rata allocation or by any
other method of allocation that does not take account of the equitable considerations referred to
herein. The amount paid by an indemnified party as a result of the Losses referred to in the first
sentence of this paragraph shall be deemed to include any legal and other expenses reasonably
incurred by such indemnified party in connection with investigating or defending any Loss that is
the subject of this paragraph. No person guilty of fraudulent misrepresentation (within the

12

 

meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person
who is not guilty of such fraudulent misrepresentation.

          (e) Other Indemnification. The provisions of this Section 2.9 shall be in
addition to any other rights to indemnification or contribution that an indemnified party may have
pursuant to law, equity, contract or otherwise.

     Section 2.10 Rule 144 Reporting. With a view to making available the benefits of
certain rules and regulations of the SEC that may permit the sale of the Registrable Securities to
the public without registration, Seller agrees to use its commercially reasonable efforts to:

          (a) make and keep public information regarding Seller available, as those terms are understood
and defined in Rule 144 under the Securities Act, at all times from and after the date hereof;

          (b) file with the SEC in a timely manner all reports and other documents required of Seller
under the Securities Act and the Exchange Act at all times from and after the date hereof; and

          (c) so long as a Holder owns any Registrable Securities, furnish, unless otherwise available
via EDGAR, to such Holder forthwith a copy of the most recent annual or quarterly report of Seller,
and such other reports and documents so filed as such Seller may reasonably request in availing
itself of any rule or regulation of the SEC allowing such Seller to sell any such securities
without registration.

     Section 2.11 Transfer or Assignment of Registration Rights. The rights under this
Article 2 may be not transferred or assigned by Purchaser except to controlled Affiliates
of Purchaser and provided that (a) Seller is given written notice prior to any said transfer or
assignment, stating the name and address of each such transferee and identifying the securities
with respect to which such registration rights are being transferred or assigned, and (b) each such
transferee assumes in writing responsibility for its portion of the obligations of Purchaser under
this Agreement.

ARTICLE 3

MISCELLANEOUS

     Section 3.1 Communications. All notices that are required or may be given pursuant to this
Agreement shall be sufficient in all respects if given in writing. Any such notice shall be deemed
given (i) when made, if made by hand delivery, and upon confirmation of receipt, if made by
facsimile, (ii) one Business Day after being deposited with a next-day courier, postage prepaid, or
(iii) three Business Days after being sent certified or registered mail, return receipt requested,
postage prepaid, in each case addressed as follows:

     If to Seller, to:

 McMoRan Exploration Co.

1615 Poydras Street

13

 

New Orleans, Louisiana 70112

Fax: (504) 585-3513

Attention: General Counsel

     With a copy to (which copy shall not constitute notice):

Andrews Kurth LLP

600 Travis Street, Suite 4200

Houston, Texas 77002

Fax: (713) 238-7130

Attention: Michael O’Leary

     If to Purchaser, to:

Freeport-McMoRan Preferred LLC

c/o Freeport-McMoRan Copper & Gold Inc.

One North Central Avenue

Phoenix, Arizona 85004-4414

Fax: (602) 366-7691

Attention: General Counsel

     With a copy to (which copy shall not constitute notice)::

Wachtell, Lipton, Rosen & Katz

51 West 52nd Street

New York, New York 10019

Fax: (212) 403-2000

Attention: Edward D. Herlihy

                 David E. Shapiro

     If to an assignee of Purchaser, to such Holder at the address provided pursuant to Section
2.11 above.

     Either Party may change its address for notice by notice to the other in the manner set forth
above. All notices shall be deemed to have been duly given at the time of receipt by the Party to
which such notice is addressed.

     Section 3.2 Successor and Assigns. This Agreement shall inure to the benefit of and
be binding upon the successors and permitted assigns of each of the Parties, including subsequent
Holders of Registrable Securities to the extent permitted herein.

     Section 3.3 Recapitalization, Exchanges, Etc. Affecting the Registrable Securities.
The provisions of this Agreement shall apply to the full extent set forth herein with respect to
any and all securities of Seller or any successor or assign of Seller (whether by merger,
consolidation, sale of assets or otherwise) that may be issued in respect of, in exchange for or in
substitution of, the Registrable Securities, and shall be appropriately adjusted for combinations,

14

 

stock splits, recapitalizations, pro rata distributions of securities and the like occurring after
the date of this Agreement.

     Section 3.4 Aggregation of Registrable Securities. All Registrable Securities held
or acquired by Persons who are Affiliates of one another shall be aggregated together for the
purpose of determining the availability of any rights and applicability of any obligations under
this Agreement.

     Section 3.5 Specific Performance. Damages in the event of breach of this Agreement by
a Party may be difficult, if not impossible, to ascertain, and it is therefore agreed that each
such Person, in addition to and without limiting any other remedy or right it may have, will have
the right to an injunction or other equitable relief in any court of competent jurisdiction,
enjoining any such breach, and enforcing specifically the terms and provisions hereof, and each of
the Parties hereto hereby waives any and all defenses it may have on the ground of lack of
jurisdiction or competence of the court to grant such an injunction or other equitable relief. The
existence of this right will not preclude any such Person from pursuing any other rights and
remedies at law or in equity that such Person may have.

     Section 3.6 Counterparts. This Agreement may be executed in counterparts, each of which
shall be deemed an original instrument, but all such counterparts together shall constitute but one
agreement. Facsimiles of signatures or signatures delivered in portable document format (.pdf)
will be deemed to be originals.

     Section 3.7 Headings. The headings in this Agreement are for convenience of reference only and shall not limit or
otherwise affect the meaning hereof.

     Section 3.8 Governing Law.

          (a) This Agreement and the legal relations between the Parties shall be governed by and
construed in accordance with the Laws of the State of Delaware, United States of America without
regard to principles of conflicts of laws that would direct the application of the Laws of another
jurisdiction.

          (b) Any action brought in connection with this Agreement shall be brought in the federal or
state courts located in the City of Wilmington, Delaware. The Parties hereto hereby (i)
irrevocably consent to the personal jurisdiction and venue of such courts, and (ii) waive any claim
(by way of motion, as a defense or otherwise) of improper venue, that such parties are not subject
personally to the jurisdiction of such court, that such courts are an inconvenient forum or that
this Agreement or the subject matter may not be enforced in or by such court.

     Section 3.9 Severability of Provisions. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to
the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof or affecting or impairing the validity or enforceability of such provision in any other
jurisdiction.

15

 

     Section 3.10 Entire Agreement. This Agreement constitutes the entire agreement
between the Parties pertaining to the subject matter hereof, and supersede all prior agreements,
understandings, negotiations and discussions, whether oral or written, of the Parties pertaining to
the subject matter hereof.

     Section 3.11 Amendment. This Agreement may be amended only by means of a written
amendment signed by Seller and the Holders of a majority of the then outstanding Registrable
Securities; provided, however, that no such amendment shall materially and adversely affect the
rights of any Holder hereunder without the consent of such Holder.

     Section 3.12 No Presumption. If any claim is made by a Party relating to any
conflict, omission, or ambiguity in this Agreement, no presumption or burden of proof or persuasion
shall be implied by virtue of the fact that this Agreement was prepared by or at the request of a
particular Party or its counsel. Each Party has been represented by its own counsel in connection
with the negotiation and preparation of this Agreement and, consequently, each Party hereby waives
the application of any rule of Law that would otherwise be applicable in connection with the
interpretation of this
Agreement, including but not limited to any rule of Law to the effect that any provision of
this Agreement will be interpreted or construed against the Party whose counsel drafted that
provision.

     Section 3.13 Obligations Limited to Parties to Agreement. Each of the Parties hereto
covenants, agrees and acknowledges that no Person other than Purchaser (and its permitted
assignees) and Seller shall have any obligation hereunder and that, notwithstanding that Purchaser
is a limited liability company, no recourse under this Agreement or under any documents or
instruments delivered in connection herewith or therewith shall be had against any former, current
or future director, officer, employee, agent, manager, stockholder or Affiliate of Purchaser or any
former, current or future director, officer, employee, agent, general or limited partner, manager,
member, stockholder or Affiliate of any of the foregoing, whether by the enforcement of any
assessment or by any legal or equitable proceeding, or by virtue of any applicable Law, it being
expressly agreed and acknowledged that no personal liability whatsoever shall attach to, be imposed
on or otherwise by incurred by any former, current or future director, officer, employee, agent,
general or limited partner, manager, member, stockholder or Affiliate of Purchaser or any former,
current or future director, officer, employee, agent, general or limited partner, manager, member,
stockholder or Affiliate of any of the foregoing, as such, for any obligations of Purchaser under
this Agreement or any documents or instruments delivered in connection herewith or therewith or for
any claim based on, in respect of or by reason of such obligation or its creation, except in each
case for any assignee of Purchaser hereunder.

     Section 3.14 Interpretation. Article and Section references to this Agreement, unless
otherwise specified. All references to instruments, documents, contracts and agreements are
references to such instruments, documents, contracts and agreements as the same may be amended,
supplemented and otherwise modified from time to time, unless otherwise specified. The word
“including” shall mean “including but not limited to.” Whenever any determination, consent or
approval is to be made or given by Seller under this Agreement, such action shall be in Seller’s
sole discretion unless otherwise specified.

16

 

[Next page is the signature page.]

17

 

     IN WITNESS WHEREOF, this Agreement has been signed by each of the Parties as of the date first
above written.

	 	 	 	 	 
	 	McMoRan EXPLORATION CO.

 	 
	 	By:  	/s/ Kathleen L. Quirk
 	 
	 	 	Name:  	Kathleen L. Quirk 	 
	 	 	Title:  	Senior Vice President & Treasurer 	 
	 
	 
	 	FREEPORT- McMoRan PREFERRED LLC

 	 
	 	By: FREEPORT-McMoRAN COPPER &
 GOLD, INC., its sole member
 	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Richard C. Adkerson
 	 
	 	 	Name:  	Richard C. Adkerson 	 
	 	 	Title:  	President & Chief Executive Officer 	 
	 

[Signature Page to Registration Rights Agreement]exv4w5

Exhibit 4.5

MCMORAN EXPLORATION CO.

4% Convertible Senior Notes due 2017

 

INDENTURE

Dated as of December 30, 2010

 

U.S. BANK NATIONAL ASSOCIATION

TRUSTEE

 

 

 

TABLE
OF CONTENTS

Page  

ARTICLE 1

Definitions and Other Provisions of General Application

	 	 	 	 	 

	Section 1.01. Definitions

	 	 	1	 
	Section 1.02. Other Definitions

	 	 	7	 
	Section 1.03. Incorporation by Reference of Trust Indenture Act

	 	 	8	 
	Section 1.04. References to Interest

	 	 	8	 
	Section 1.05. Acts of Holders

	 	 	8	 

ARTICLE 2

The Notes

	 	 	 	 	 

	Section 2.01. Designation Amount and Issue of Notes

	 	 	10	 
	Section 2.02. Form of Notes

	 	 	10	 
	Section 2.03. Execution and Authentication

	 	 	10	 
	Section 2.04. Note Registrar, Paying Agent and Conversion Agent

	 	 	11	 
	Section 2.05. Paying Agent to Hold Money and Common Stock in Trust

	 	 	12	 
	Section 2.06. Holder Lists

	 	 	12	 
	Section 2.07. Transfer and Exchange; Restrictions on Transfer; Depositary

	 	 	12	 
	Section 2.08. Replacement Notes

	 	 	19	 
	Section 2.09. Outstanding Notes; Determination of Holders’ Action

	 	 	19	 
	Section 2.10. Temporary Notes

	 	 	20	 
	Section 2.11. Cancellation

	 	 	20	 
	Section 2.12. Persons Deemed Owners

	 	 	21	 
	Section 2.13. CUSIP Numbers

	 	 	21	 
	Section 2.14. Default Interest

	 	 	21	 
	Section 2.15. Deemed Removal of Restrictive Legend

	 	 	21	 

ARTICLE 3

Redemption and Repurchase Upon a Change of Control

	 	 	 	 	 

	Section 3.01. Company’s Right to Redeem

	 	 	22	 
	Section 3.02. Notice of Optional Redemption; Selection of Notes

	 	 	22	 
	Section 3.03. Payment of Notes Called for Redemption by the Company

	 	 	24	 
	Section 3.04. Conversion Arrangement on Call for Redemption

	 	 	25	 
	Section 3.05. Purchase of Notes at Option of the Holder upon Change of Control

	 	 	25	 
	Section 3.06. Effect of Change of Control Purchase Notice

	 	 	27	 
	Section 3.07. Deposit of Change of Control Purchase Price

	 	 	28	 
	Section 3.08. Notes Purchased in Part

	 	 	29	 
	Section 3.09. Covenant to Comply with Securities Laws upon Purchase of Notes

	 	 	29	 
	Section 3.10. Repayment to the Company

	 	 	29	 

i 

 

Page  

ARTICLE 4

Covenants

	 	 	 	 	 

	Section 4.01. Payment of Principal of and Interest on the Notes

	 	 	29	 
	Section 4.02. Reports by the Company

	 	 	30	 
	Section 4.03. Compliance Certificate

	 	 	30	 
	Section 4.04. Further Instruments and Acts

	 	 	30	 
	Section 4.05. Maintenance of Office or Agency

	 	 	30	 
	Section 4.06. Delivery of Certain Information

	 	 	31	 
	Section 4.07. Existence

	 	 	31	 
	Section 4.08. Maintenance of Properties

	 	 	31	 
	Section 4.09. Payment of Taxes and Other Claims

	 	 	31	 
	Section 4.10. Additional Interest Notice

	 	 	32	 

ARTICLE 5

Successor Corporation

	 	 	 	 	 

	Section 5.01. When the Company May Merge or Transfer Assets

	 	 	32	 

ARTICLE 6

Defaults and Remedies

	 	 	 	 	 

	Section 6.01. Events of Default

	 	 	33	 
	Section 6.02. Acceleration

	 	 	35	 
	Section 6.03. Additional Interest

	 	 	35	 
	Section 6.04. Other Remedies

	 	 	36	 
	Section 6.05. Waiver of Past Defaults

	 	 	36	 
	Section 6.06. Control by Majority

	 	 	36	 
	Section 6.07. Limitation on Suits

	 	 	36	 
	Section 6.08. Rights of Holders to Receive Payment

	 	 	37	 
	Section 6.09. Collection Suit by Trustee

	 	 	37	 
	Section 6.10. Trustee May File Proofs of Claim

	 	 	37	 
	Section 6.11. Priorities

	 	 	38	 
	Section 6.12. Undertaking for Costs

	 	 	38	 
	Section 6.13. Waiver of Stay, Extension or Usury Laws

	 	 	38	 

ARTICLE 7

Trustee

	 	 	 	 	 

	Section 7.01. Duties and Responsibilities of the Trustee; During Default; Prior to Default

	 	 	39	 
	Section 7.02. Certain Rights of the Trustee

	 	 	40	 
	Section 7.03. Trustee Not Responsible for Recitals, Dispositions of Notes or Application of Proceeds Thereof

	 	 	41	 
	Section 7.04. Trustee and Agents May Hold Notes, Collections, etc.

	 	 	41	 
	Section 7.05. Moneys and Shares of Common Stock Held by Trustee

	 	 	41	 
	Section 7.06. Compensation and Indemnification of Trustee and Its Prior Claim

	 	 	41	 
	Section 7.07. Right of Trustee to Rely on Officers’ Certificate, etc.

	 	 	42	 

ii 

 

Page  

	 	 	 	 	 

	Section 7.08. Conflicting Interests

	 	 	42	 
	Section 7.09. Persons Eligible for Appointment as Trustee

	 	 	42	 
	Section 7.10. Resignation and Removal; Appointment of Successor Trustee

	 	 	42	 
	Section 7.11. Acceptance of Appointment by Successor Trustee

	 	 	44	 
	Section 7.12. Merger, Conversion, Consolidation or Succession to Business of Trustee

	 	 	44	 
	Section 7.13. Preferential Collection of Claims Against the Company

	 	 	45	 
	Section 7.14. Reports by the Trustee

	 	 	45	 
	Section 7.15. Trustee to Give Notice of Default, But May Withhold in Certain Circumstances

	 	 	45	 

ARTICLE 8

Discharge of Indenture

	 	 	 	 	 

	Section 8.01. Discharge of Indenture

	 	 	45	 
	Section 8.02. Paying Agent to Repay Monies Held

	 	 	46	 
	Section 8.03. Return of Unclaimed Monies

	 	 	46	 

ARTICLE 9

Supplemental Indentures

	 	 	 	 	 

	Section 9.01. Without Consent of Holders

	 	 	46	 
	Section 9.02. With Consent of Holders

	 	 	47	 
	Section 9.03. Compliance with Trust Indenture Act

	 	 	48	 
	Section 9.04. Revocation and Effect of Consents, Waivers and Actions

	 	 	48	 
	Section 9.05. Notation on or Exchange of Notes

	 	 	48	 
	Section 9.06. Trustee to Sign Supplemental Indentures

	 	 	48	 
	Section 9.07. Effect of Supplemental Indentures

	 	 	48	 

ARTICLE 10

Conversion

	 	 	 	 	 

	Section 10.01. Conversion Right and Conversion Rate

	 	 	48	 
	Section 10.02. Exercise of Conversion Right

	 	 	49	 
	Section 10.03. Fractions of Shares

	 	 	50	 
	Section 10.04. Increased Conversion Rate Applicable to Certain Notes Surrendered
in Connection with a Change of Control

	 	 	50	 
	Section 10.05. Adjustment of Conversion Rate

	 	 	52	 
	Section 10.06. Notice of Adjustments of Conversion Rate

	 	 	59	 
	Section 10.07. Notice Prior to Certain Actions

	 	 	60	 
	Section 10.08. Company to Reserve Common Stock

	 	 	60	 
	Section 10.09. Taxes on Conversions

	 	 	61	 
	Section 10.10. Covenant as to Common Stock

	 	 	61	 
	Section 10.11. Cancellation of Converted Notes

	 	 	61	 
	Section 10.12. Effect of Reclassification, Consolidation, Merger or Sale

	 	 	61	 
	Section 10.13. Responsibility of Trustee for Conversion Provisions

	 	 	62	 
	Section 10.14. Stockholder Rights Plans

	 	 	63	 
	Section 10.15. Limit on Beneficial Ownership

	 	 	63	 

iii 

 

Page  

ARTICLE 11

Miscellaneous

	 	 	 	 	 

	Section 11.01. Trust Indenture Act Controls

	 	 	63	 
	Section 11.02. Notices

	 	 	64	 
	Section 11.03. Communication by Holders with Other Holders

	 	 	64	 
	Section 11.04. Certificate and Opinion as to Conditions Precedent

	 	 	65	 
	Section 11.05. Statements Required in Certificate or Opinion

	 	 	65	 
	Section 11.06. Separability Clause

	 	 	65	 
	Section 11.07. Rules by Trustee, Paying Agent, Conversion Agent and Note Registrar

	 	 	65	 
	Section 11.08. Legal Holidays

	 	 	65	 
	Section 11.09. Governing Law

	 	 	65	 
	Section 11.10. No Recourse Against Others

	 	 	66	 
	Section 11.11. Successors

	 	 	66	 
	Section 11.12. Benefits of Indenture

	 	 	66	 
	Section 11.13.
Table of Contents, Heading, etc.

	 	 	66	 
	Section 11.14. Authenticating Agent

	 	 	66	 
	Section 11.15. Execution in Counterparts

	 	 	67	 

SCHEDULE

	 	 	 

	Schedule 1

	 	Investors

EXHIBITS

	 	 	 	 	 

	Exhibit A

	 	Form of Global Note
	 	A-1
	Exhibit B

	 	Form of Free Transferability Certificate
	 	B-1
	Exhibit C

	 	Form of Transfer Certificate
	 	C-1

iv 

 

     INDENTURE dated as of December 30, 2010 between MCMORAN EXPLORATION CO., a Delaware
corporation (the “Company”) and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as
Trustee hereunder (the “Trustee”).

RECITALS OF THE COMPANY

     The Company has duly authorized the creation of an issuance of its 4% Convertible Senior Notes
due 2017 (the “Notes”) of the tenor and amount hereinafter set forth, and to provide therefor the
Company has duly authorized the execution and delivery of this Indenture.

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

     This Indenture is subject to, and shall be governed by, the provisions of the Trust Indenture
Act of 1939, as amended, that are required to be a part of and to govern indentures qualified under
the Trust Indenture Act of 1939, as amended.

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

ARTICLE 1

Definitions and Other Provisions of General Application

     Section 1.01. Definitions. For all purposes of this Indenture, except as otherwise expressly
provided or unless the context otherwise requires:

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

     (2) “or” is not exclusive;

     (3) “including” means “including, without limitation”;

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

1

 

     (5) the words “herein,” “hereof,” “hereunder” and other words of similar import refer to this
Indenture as a whole and not to any particular Article, Section or other subdivision.

     “Additional Interest” means all amounts, if any, payable pursuant to the Registration Rights
Agreement and Section 6.03, as applicable.

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

     “Bankruptcy Law” means Title 11, United States Code, or any similar federal or state law for
the relief of debtors.

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

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

     “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day
on which the banking institutions in The City of New York or the city in which the Corporate Trust
Office is located are authorized or obligated by law or executive order to close or be closed.

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

     “Certificate of Designations” means the certificate of designations filed with the State of
Delaware on December 30, 2010, pursuant to which the shares of Preferred Stock are being issued.

     “Change of Control” of the Company shall be deemed to have occurred at such time after the
original issuance of the Notes if any of the following events shall occur:

     (i) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act), acquires the beneficial ownership (as defined in Rules 13d-3 and 13d-5 under
the Exchange Act, except that a person shall be deemed to have “beneficial ownership” of all
securities that such person has the right to acquire, whether such right is exercisable
immediately or only after the passage of time), directly or indirectly, through a purchase,
merger or other acquisition transaction, of more than 50% of the total voting power of the
Company’s total outstanding Voting Stock other than an

 

 

acquisition by the Company, any of its Subsidiaries or any of its employee benefit plans; or

     (ii) the Company consolidates with, or merges with or into, another Person or conveys,
transfers, leases or otherwise disposes of all or substantially all of its assets to any
Person, or any Person consolidates with or merges with or into the Company.

     Notwithstanding the foregoing, in the case of a transaction or event described above, a Change
of Control will not be deemed to have occurred if at least 90% of the consideration, excluding cash
payments for fractional shares, in the transaction or transactions constituting the Change of
Control consists of shares of common stock, depositary receipts or other certificates representing
common equity interests, in each case, that are traded on a national securities exchange or that
will be so traded when issued or exchanged in connection with a Change of Control (these securities
being referred to as “publicly traded securities”) and as a result of this transaction or
transactions the shares become convertible into such publicly traded securities, excluding cash
payments for fractional shares (subject to the provisions set forth below under Article 10).

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

     “Closing Price” of any security on any date of determination means:

     (1) the closing sale price (or, if no closing sale price is reported, the last reported sale
price) of such security on the New York Stock Exchange, or if not listed for trading on the New
York Stock Exchange, the closing sale price (or, if no closing sale price is reported, the last
reported sale price) of such security on the NASDAQ Global Select Market or the NASDAQ Global
Market, as applicable, on such date;

     (2) if such security is not listed for trading on any of the New York Stock Exchange, the
NASDAQ Global Select Market or the NASDAQ Global Market on any such date, the closing sale price as
reported in the composite transactions for the principal U.S. securities exchange on which such
security is so listed;

     (3) if such security is not so listed on a U.S. national or regional securities exchange, the
last quoted bid price for such security in the over-the-counter market as reported by Pink OTC
Markets Inc. or a similar organization; or

     (4) if such bid price is not available, the average of the mid-point of the last bid and ask
price of such security on such date from at least three nationally recognized independent
investment banking firms retained for this purpose by the Company.

     “Common Stock” means the common stock, par value $0.01 per share, of the Company, authorized
at the date of this instrument as originally executed, subject to Section 10.12.

     “Company” means the party named as the “Company” in the first paragraph of this Indenture
until a successor replaces it pursuant to the applicable provisions of this Indenture and,
thereafter, shall mean such successor. The foregoing sentence shall likewise apply to any such
subsequent successor or successors.

 

 

     “Company Order” means a written order signed in the name of the Company by any two Officers of
the Company.

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

     “Corporate Trust Office” means the principal office of the Trustee at which at any time its
corporate trust business shall be administered, which office at the date hereof is located at 5555
San Felipe, Suite 1150, Houston, Texas 77056, or such other address as the Trustee may designate
from time to time by notice to the Holders and the Company, or the principal corporate trust office
of any successor Trustee (or such other address as a successor Trustee may designate from time to
time by notice to the Holders and the Company).

     “Custodian” means the Trustee, as custodian for The Depository Trust Company, with respect to
the Global Note, or any successor entity thereto, except that for purposes of Section 6.01
“Custodian” means any receiver, trustee, assignee, liquidator, custodian or similar official under
any Bankruptcy Law.

     “Default” means any event which is, or after notice or passage of time or both would be, an
Event of Default.

     “Depositary” means, with respect to each Global Note, the Person specified in Section 2.07(c)
as the Depositary with respect to such Note, until a successor shall have been appointed and become
such pursuant to the applicable provisions of this Indenture, and thereafter, “Depositary” shall
mean or include such successor.

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

     “Ex-Dividend Date” means the first date on which shares of the Common Stock trade on the
applicable exchange or in the applicable market, regular way, without the right to receive the
issuance or distribution in question, from the Company or, if applicable, from the seller of Common
Stock on such exchange or market (in the form of due bills or otherwise) as determined by such
exchange or market.

     “GAAP” means United States generally accepted accounting principles as in effect from time to
time.

     “Holder” as applied to any Note, or other similar terms (but excluding the term “beneficial
holder”), means any Person in whose name at the time a particular Note is registered on the Note
Registrar’s books.

     “Indenture” means this Indenture, as amended or supplemented from time to time in accordance
with the terms hereof, including the provisions of the TIA that are deemed to be a part hereof.

     “Interest Payment Date” means each February 15 and August 15 of each year, beginning on August
15, 2011.

 

 

     “Investors” means the entities set forth in Schedule I hereto.

     “Legal Holiday” means any day other than a Business Day.

     “Maturity Date” means December 30, 2017.

     “Officer” means the Chairman of the Board, the Vice Chairman, the Chief Executive Officer, the
President, any Executive Vice President, any Senior Vice President, any Vice President, the
Treasurer or the Secretary or any Assistant Treasurer or Assistant Secretary of the Company.

     “Officers’ Certificate” means a written certificate containing the information specified in
Section 11.04 and Section 11.05, signed in the name of the Company by any two Officers of the
Company and delivered to the Trustee. An Officers’ Certificate given pursuant to Section 4.03
shall be signed by an authorized financial or accounting Officer of the Company but need not
contain the information specified in Section 11.04 and Section 11.05.

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

     “Opinion of Counsel” means a written opinion containing the information specified in Section
11.04 and Section 11.05 from legal counsel. The counsel may be an employee of, or counsel to, the
Company.

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

     “Preferred Stock” means the 53/4% Convertible Perpetual Preferred Stock of the Company to be
issued by the Company on the date hereof.

     “principal” of a Note means the principal amount due on the Maturity Date as set forth on the
face of the Note.

     “QIB” means a “qualified institutional buyer” as defined in Rule 144A.

     “Record Date” means, with respect to any dividend, distribution or other transaction or event
in which the holders of Common Stock (or other security) 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, by statute, by contract or otherwise).

     “Registration Rights Agreement” means that certain Registration Rights Agreement, dated as of
December 30, 2010, among the Company and the Investors, as amended from time to time in accordance
with its terms.

 

 

     “Regular Record Date” means, with respect to the interest payable on any Interest Payment
Date, the close of business on February 1 or August 1 (whether or not a Business Day), as the case
may be, next preceding such Interest Payment Date.

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

     “Rule 144A” means Rule 144A under the Securities Act (or any successor provision), as it may
be amended from time to time.

     “SEC” means the Securities and Exchange Commission.

     “Securities Act” means the United States Securities Act of 1933 (or any successor statute), as
amended from time to time.

     “Significant Subsidiary” means a Subsidiary of the Company that meets the definition of
“significant subsidiary” in Article 1, Rule 1-02 of Regulation S-X under the Exchange Act.

     “Subsidiary” means (i) a corporation, a majority of whose Capital Stock with voting power,
under ordinary circumstances, to elect directors is, at the date of determination, directly or
indirectly owned by the Company, by one or more Subsidiaries of the Company or by the Company and
one or more Subsidiaries of the Company, (ii) a partnership in which the Company or a Subsidiary of
the Company holds a majority interest in the equity capital or profits of such partnership or (iii)
any other person (other than a corporation) in which the Company, a Subsidiary of the Company or
the Company and one or more Subsidiaries of the Company, directly or indirectly, at the date of
determination, has (x) at least a majority ownership interest or (y) the power to elect or direct
the election of a majority of the directors or other governing body of such person.

     “TIA” means the Trust Indenture Act of 1939 as in effect on the date of this Indenture;
provided, however, that in the event the TIA is amended after such date, TIA means, to the extent
required by any such amendment, the TIA as so amended.

     “Trading Day” means a day (i) during which trading in the Common Stock generally occurs on the
New York Stock Exchange, or if the Common Stock is not listed on the New York Stock Exchange, on
the principal other U.S. national or regional securities exchange on which the Common Stock is then
listed, or if the Common Stock is not listed on a U.S. national or regional securities exchange, on
the principal other market on which the Common Stock is then traded and (ii) on which the Closing
Price for the Common Stock is available on such securities exchange or market; provided that if the
Common Stock is not so listed or traded, “Trading Day” means a Business Day.

 

 

     “Trustee” means the party named as the “Trustee” in the first paragraph of this Indenture
until a successor replaces it pursuant to the applicable provisions of this Indenture and,
thereafter, shall mean such successor. The foregoing sentence shall likewise apply to any such
subsequent successor or successors.

     “United States” or “U.S.” means the United States of America (including the States and the
District of Columbia), its territories, its possessions and other areas subject to its jurisdiction
(its “possessions” including Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake
Island and the Northern Mariana Islands).

     “Voting Stock” means, with respect to any Person, Capital Stock of any class or kind
ordinarily having the power to vote for the election of directors of such Person.

     Section 1.02. Other Definitions.

	 	 	 	 	 
	Term	 	Defined in Section
	“Act”
	 	 	1.05	 
	“Additional Interest Notice”
	 	 	4.10	 
	“Additional Shares”
	 	 	10.04	(a)
	“Agent Members”
	 	 	2.07	(c)
	“Authenticating Agent”
	 	 	11.14	 
	“Certificated Notes”
	 	 	2.07	(a)
	“Change of Control Purchase Date”
	 	 	3.05	(a)
	“Change of Control Purchase Notice”
	 	 	3.05	(c)
	“Change of Control Purchase Price”
	 	 	3.05	(a)
	“Clause A Distribution”
	 	 	10.05	(c)
	“Clause B Distribution”
	 	 	10.05	(c)
	“Clause C Distribution”
	 	 	10.05	(c)
	“Conversion Agent”
	 	 	2.04	 
	“Conversion Date”
	 	 	10.02	 
	“Conversion Obligation”
	 	 	10.01	 
	“Conversion Rate”
	 	 	10.01	 
	“Distributed Property”
	 	 	10.05	(c)
	“Effective Date”
	 	 	10.04	(c)
	“Event of Default”
	 	 	6.01	 
	“Global Note”
	 	 	2.07	(a)
	“Merger Event”
	 	 	10.12	 
	“Note” or “Notes”
	 	Recitals
	“Note Register”
	 	 	2.04	 
	“Note Registrar”
	 	 	2.04	 
	“NYSE Manual”
	 	 	10.15	 
	“Notice of Default”
	 	 	6.01	 
	“Paying Agent”
	 	 	2.04	 
	“Principal Amount”
	 	 	2.07	(a)
	“Redemption Date”
	 	 	3.02	(a)
	“Redemption Notice”
	 	 	3.02	(a)

 

 

	 	 	 	 	 
	Term	 	Defined in Section
	“Redemption Price”
	 	 	3.01	 
	“Reference Property”
	 	 	10.12	 
	“Resale Restriction Termination Date”
	 	 	2.07	(c)
	“Restricted Note”
	 	 	10.02	 
	“Restricted Securities”
	 	 	2.07	(c)
	“Rule 144A Information”
	 	 	4.06	 
	“Spin-Off”
	 	 	10.05	(c)
	“Stock Price”
	 	 	10.04	(c)
	“Threshold Number of Shares”
	 	 	10.15	 
	“transfer”
	 	 	2.07	(c)
	“Trigger Event”
	 	 	10.05	(c)
	“Valuation Period”
	 	 	10.05	(c)
	“unit of Reference Property”
	 	 	10.12	 

     Section 1.03. Incorporation by Reference of Trust Indenture Act. Whenever this Indenture
refers to a provision of the TIA, the provision is incorporated by reference in and made a part of
this Indenture. The following TIA terms used in this Indenture have the following meanings:

     “Commission” means the SEC.

     “indenture Notes” means the Notes.

     “indenture Note holder” means a Holder.

     “indenture to be qualified” means this Indenture.

     “indenture trustee” or “institutional trustee” means the Trustee.

     “obligor” on the indenture Notes means the Company.

     All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by SEC rule have the meanings assigned to them by such
definitions.

     Section 1.04. References to Interest. Unless the context otherwise requires, any reference
to interest on, or in respect of, any Note in this Indenture shall be deemed to include Additional
Interest if, in such context, Additional Interest is, was or would be payable pursuant to Section
6.03 and/or the Registration Rights Agreement, but, in the case of Additional Interest payable
pursuant to the Registration Rights Agreement, subject to the limitations set forth therein. Unless
the context otherwise requires, any express mention of Additional Interest in any provision hereof
shall not be construed as excluding Additional Interest in those provisions hereof where such
express mention is not made.

     Section 1.05. Acts of Holders. 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 their 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 the “Act” of 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 conclusive in favor of the Trustee and
the Company, if made in the manner provided in this Section 1.05.

     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 such officer the execution thereof. Where such
execution is by a signer acting in a capacity other than such signer’s individual capacity, such
certificate or affidavit shall also constitute sufficient proof of such signer’s 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 deems sufficient.

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

     Any request, demand, authorization, direction, notice, consent, waiver or other Act of the
Holder of any Note shall bind every future Holder of the same Note and the holder of every Note
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 Note.

     If the Company shall solicit from the Holders any request, demand, authorization, direction,
notice, consent, waiver or other Act, the Company may, at its option, by or pursuant to a
resolution of the Board of Directors, fix in advance a record date for the determination of Holders
entitled to give such request, demand, authorization, direction, notice, consent, waiver or other
Act, but the Company shall have no obligation to do so. If such a record date is fixed, such
request, demand, authorization, direction, notice, consent, waiver or other Act may be given before
or after such record date, but only the Holders of record at the close of business on such record
date shall be deemed to be Holders for purposes of determining whether Holders of the requisite
proportion of outstanding Notes have authorized or agreed or consented to such request, demand,
authorization, direction, notice, consent, waiver or other Act, and for that purpose the
outstanding Notes shall be computed as of such record date; provided that no such authorization,
agreement or consent by the Holders on such record date shall be deemed effective unless it shall
become effective pursuant to the provisions of this Indenture not later than six (6) months after
the record date.

 

 

ARTICLE 2

The Notes

     Section 2.01. Designation Amount and Issue of Notes. The Notes shall be designated as “4%
Convertible Senior Notes due 2017” not to exceed the aggregate principal amount of $200,000,000
upon the execution of this Indenture, except for Notes executed by the Company and delivered to the
Trustee for authentication pursuant to Section 2.07, Section 2.08, Section 3.02, Section 3.08,
Section 9.05 and Section 10.02, and the Trustee shall thereupon authenticate
and deliver said Notes upon a Company Order, without any further action by the Company
hereunder.

     Section 2.02. Form of Notes. The Notes and the Trustee’s certificate of authentication to be
borne by such Notes shall be substantially in the form set forth in Exhibit A.

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

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

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

     Section 2.03. Execution and Authentication. The Notes shall be executed on behalf of the
Company by an Officer of the Company, under its corporate seal reproduced thereon, which may be
manual or facsimile. The signatures of such Officer on the Notes may be manual or facsimile.

     Notes bearing the manual or facsimile signatures of individuals who were at the time of the
execution of the Notes the proper Officers of the Company shall bind the Company, notwithstanding
that such individuals or any of them have ceased to hold such offices prior to the

 

 

authentication
and delivery of such Notes or did not hold such offices at the
date of authentication of such
Notes. Notes shall be dated the date of their authentication.

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

     The Notes shall be issued only in registered form without coupons and only in denominations of
$1,000 in principal amount and any integral multiple thereof. Each Note shall be dated the date of
its authentication and shall bear interest from the date specified on the face of the Note.
Accrued interest on the Notes shall be computed on the basis of a 360-day year composed of twelve
30-day months.

     The Person in whose name any Note (or its Predecessor Note) is registered on the Note Register
at the close of business on any Regular Record Date with respect to any Interest Payment Date shall
be entitled to receive the interest payable on such Interest Payment Date. Interest shall be
payable at the office or agency of the Company maintained by the Company for such purposes, which
shall initially be the Corporate Trust Office. The Company shall pay interest (i) on any
Certificated Notes (A) to Holders having an aggregate principal amount of $5,000,000 or less, by
check mailed to the Holders of these Notes at their address as it appears in the Note Register and
(B) to Holders having an aggregate principal amount of more than $5,000,000, either by check mailed
to the Holders of these Notes or upon application by a Holder to the Note Registrar not later than
the relevant Regular Record Date, by wire transfer in immediately available funds to that Holder’s
account within the United States, which application shall remain in effect until the Holder
notifies, in writing, the Note Registrar to the contrary or (ii) on any Global Note by wire
transfer of immediately available funds to the account of the Depositary or its nominee.

     Section 2.04. Note Registrar, Paying Agent and Conversion Agent. The Company shall maintain
an office or agency where Notes may be presented for registration of transfer or for exchange
(“Note Registrar”), an office or agency where Notes may be presented for purchase or payment
(“Paying Agent”) and an office or agency where Notes may be presented for conversion (the
“Conversion Agent”). The Note Registrar shall keep a register (the “Note Register”) in which,
subject to such reasonable regulations as it may prescribe, it shall provide for the registration
and transfer of the Notes. The Company may have one or more co-Note Registrars, one or more
additional paying agents and one or more additional conversion agents. The term Paying Agent
includes any additional paying agent, including any named pursuant to this Section 2.04. The term
Conversion Agent includes any additional conversion agent, including any named pursuant to this
Section 2.04.

     The Company shall notify the Trustee of the name and address of any such agent. If the
Company fails to maintain a Note Registrar, Paying Agent or Conversion Agent, the Trustee shall act
as such and shall be entitled to appropriate compensation therefor pursuant to Section

 

 

7.06. The
Company or any Subsidiary or an Affiliate of either of them may act as Paying Agent, Note
Registrar, Conversion Agent or co-Note Registrar.

     The Company initially appoints the Trustee as Note Registrar, Conversion Agent and Paying
Agent in connection with the Notes.

     Section 2.05. Paying Agent to Hold Money in Trust. Except as otherwise provided herein, on
or prior to each due date of payments in respect of any Note, the Company shall
deposit with the Paying Agent a sum of money (in immediately available funds if deposited on
the due date) sufficient to make such payments when so becoming due. The Company shall require
each Paying Agent (other than the Trustee) to agree in writing that the Paying Agent shall hold in
trust for the benefit of Holders or the Trustee all money held by the Paying Agent for the making
of payments in respect of the Notes and shall notify the Trustee of any default by the Company in
making any such payment. At any time during the continuance of any such default, the Paying Agent
shall, upon the written request of the Trustee, forthwith pay to the Trustee all money so held in
trust. If the Company, a Subsidiary or an Affiliate of the Company acts as Paying Agent, it shall
segregate the money held by it as Paying Agent and hold it as a separate trust fund. The Company
at any time may require a Paying Agent to pay all money held by it to the Trustee and to account
for any funds disbursed by it. Upon doing so, the Paying Agent shall have no further liability for
the money.

     Section 2.06. Holder Lists. The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of Holders. If the
Trustee is not the Note Registrar, the Company shall cause to be furnished to the Trustee at least
semiannually on February 15 and August 15 a list of Holders dated within fifteen (15) days of the
date on which the list is furnished and at such other times as the Trustee may request in writing a
list in such form and as of such date as the Trustee may reasonably require of the names and
addresses of Holders.

     Section 2.07. Transfer and Exchange; Restrictions on Transfer; Depositary. Upon surrender
for registration of transfer of any Note, together with a written instrument of transfer
satisfactory to the Note Registrar duly executed by the Holder or such Holder’s attorney duly
authorized in writing, at the office or agency of the company designated as Note Registrar or
co-Note Registrar pursuant to Section 2.04, and satisfaction of the requirements of such transfer
set forth in this Section 2.07, the Company shall execute, and the Trustee shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more new Notes of any
authorized denomination or denominations, of a like aggregate principal amount and bearing such
restrictive legends as may be required by this Indenture. The Company shall not charge a service
charge for any registration of transfer or exchange, but the Company may require payment of a sum
sufficient to pay all taxes, assessments or other governmental charges that may be imposed in
connection with the transfer or exchange of the Notes from the Holder requesting such transfer or
exchange.

     At the option of the Holder, Notes may be exchanged for other Notes of any authorized
denomination or denominations, of a like aggregate principal amount, upon surrender of the Notes to
be exchanged, together with a written instrument of transfer satisfactory to the Note Registrar
duly executed by the Holder or such Holder’s attorney duly authorized in writing, at

 

 

such office or
agency. Whenever any Notes are so surrendered for exchange, the Company shall execute, and the
Trustee shall authenticate and deliver, the Notes which the Holder making the exchange is entitled
to receive.

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

     The Company shall not be required to make, and the Note Registrar need not register, transfers
or exchanges of (i) any Notes surrendered for conversion or, if a portion of a Note is surrendered
for conversion, such portion thereof surrendered for conversion, (ii) any Notes in respect of which
a Change of Control Purchase Notice has been given and not withdrawn by the Holder thereof in
accordance with the terms of this Indenture (except, in the case of Notes to be purchased in part,
the portion thereof not to be purchased) or (iii) any Notes selected for redemption in accordance
with Section 3.02.

     (a) So long as the Notes are eligible for book-entry settlement with the Depositary, or unless
otherwise required by law, all Notes that, upon initial issuance are beneficially owned by QIBs or
as a result of a sale or transfer after initial issuance are beneficially owned by QIBs, will be
represented by one or more Notes in global form registered in the name of the Depositary or the
nominee of the Depositary (the “Global Note”), except as otherwise specified below. The transfer
and exchange of beneficial interests in any such Global Note that does not involve the issuance of
a Certificated Note shall be effected through the Depositary in accordance with this Indenture and
the procedures of the Depositary therefor. The Trustee shall make appropriate endorsements to
reflect increases or decreases in the principal amounts of any such Global Note as set forth on the
face of the Note (“Principal Amount”) to reflect any such transfers. Except as provided below,
beneficial owners of a Global Note shall not be entitled to have certificates registered in their
names, will not receive or be entitled to receive physical delivery of certificates in definitive
form (“Certificated Notes”) and will not be considered holders of such Global Note.

     (b) So long as the Notes are eligible for book-entry settlement with the Depositary, or unless
otherwise required by law, upon any transfer of a Certificated Note to a QIB in accordance with
Rule 144A that requests delivery of such Note in the form of an interest in the Global Note, and
upon receipt of the Certificated Note(s) being so transferred, together with a certification,
substantially in the form of Exhibit C hereto, from the transferor that the transfer is
being made in compliance with Rule 144A (or other evidence satisfactory to the Trustee), the
Trustee shall make an endorsement on the Global Note to reflect an increase in the aggregate
Principal Amount of the Notes represented by such Global Note, and the Trustee shall cancel such
Certificated Note or Notes in accordance with the standing instructions and procedures of the
Depositary.

     (i) Upon any sale or transfer of a Note to the Company or one of its Subsidiaries
(other than pursuant to a registration statement that has been declared effective under the
Securities Act or after the expiration of the holding period applicable to sales thereof
under Rule 144 under the Securities Act), the transferor shall, prior to such sale or
transfer, furnish to the Company and/or Trustee such certifications, including

 

 

a certification substantially in the form of Exhibit C hereto, legal opinions or other
information as they may reasonably require to confirm that the proposed transfer is being
made pursuant to an exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act. Upon any transfer of a beneficial interest in the
Global Note to the Company or any such Subsidiary, as the case may be, the Trustee shall
make an endorsement on the Global Note to reflect a decrease in the aggregate Principal
Amount of the Notes represented by such Global Note, and the Company shall execute a
Certificated Note or Notes in exchange therefor, and the Trustee, upon receipt of such
Certificated Note or Notes and a Company Order, shall authenticate and deliver such
Certificated Note or Notes.

     (ii) Upon any sale or transfer of a Note pursuant to the exemption from registration
provided by Rule 144 under the Securities Act or any other available exemption from the
registration requirements of the Securities Act, the transferor shall, prior to such sale or
transfer, furnish to the Company and/or the Trustee such certifications, including a
certification substantially in the form of Exhibit C hereto, legal opinions or other
information as they may reasonably require to confirm that the proposed transfer is being
made pursuant to an exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act. Upon any transfer of a beneficial interest in the
Global Note to such transferee, the Trustee shall make an endorsement on the Global Note to
reflect a decrease in the aggregate Principal Amount of the Notes represented by such Global
Note, and, at the request of the transferee, either (1) the Company shall execute a
Certificated Note or Notes in exchange therefor, and the Trustee, upon receipt of such
Certificated Note or Notes and a Company Order, shall authenticate and deliver such,
Certificated Note or Notes or (2) if a Global Note that does not bear the legend set forth
in Section 2.07(c) has previously been executed and authenticated, the Trustee shall make an
endorsement on such Global Note to reflect a corresponding increase in the aggregate
Principal Amount of Notes represented by such Global Note.

     Any Global Note may be endorsed with or have incorporated in the text thereof such legends or
recitals or changes not inconsistent with the provisions of this Indenture as may be required by
the Trustee, the Depositary or as may be required for the Notes to be tradeable on any market
developed for trading of securities pursuant to Rule 144A or required to comply with any applicable
law or any regulation thereunder or with the rules and regulations of any securities exchange or
automated quotation system upon which the Notes may be listed or traded or to conform with any
usage with respect thereto, or to indicate any special limitations or restrictions to which any
particular Notes are subject.

     (c) Every Note that bears or is required under this Section 2.07(c) to bear the legend set
forth in this Section 2.07(c) (together with any Common Stock issued upon conversion of the Notes
and required to bear the legend set forth in, collectively, the “Restricted Securities”) shall be
subject to the restrictions on transfer set forth in this Section 2.07(c) (including those set
forth in the legend set forth below) unless such restrictions on transfer shall be eliminated or
otherwise waived by written consent of the Company, and the holder of each such Restricted
Security, by such Holder’s acceptance thereof, agrees to be bound by all such restrictions on
transfer. As

 

 

used in Section 2.07(c) and 2.07(d), the term “transfer” encompasses any sale,
pledge, loan, transfer or other disposition whatsoever of any Restricted Security.

     Until the date (the “Resale Restriction Termination Date”) that is the later of (1) the date
that is one year after the date of original issuance of the Notes, or such shorter period of time
as permitted by Rule 144 under the Securities Act or any successor provision thereto, and (2) such
later date, if any, as may be required by applicable law, any certificate evidencing such Note (and
all securities issued in exchange therefor or substitution thereof, other than Common Stock, if
any, issued upon conversion thereof, which shall bear the legend set forth in Section
2.07(d), if applicable) shall bear a legend in substantially the following form, unless such
Note has been sold pursuant to a registration statement that has been declared effective under the
Securities Act (and which continues to be effective at the time of such transfer), or unless
otherwise agreed by the Company in writing, with written notice thereof to the Trustee:

THIS SECURITY AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS SECURITY HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR
ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY, THE SHARES OF COMMON STOCK ISSUABLE UPON
CONVERSION OF THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE
REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
REGISTRATION.

THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE
TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) THAT
IS THE LATER OF (1) THE DATE THAT IS ONE YEAR AFTER THE DATE OF ORIGINAL ISSUANCE OF THIS
SECURITY, OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144 UNDER THE SECURITIES ACT
OR ANY SUCCESSOR PROVISION THERETO, AND (2) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY
APPLICABLE LAW, ONLY (A) TO MCMORAN EXPLORATION CO. OR ONE OF ITS SUBSIDIARIES, (B) UNDER A
REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) TO A
PERSON THE HOLDER REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT THAT IS PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
OF ANOTHER QUALIFIED INSTITUTIONAL BUYER AND TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A, ALL IN COMPLIANCE WITH RULE 144A (IF AVAILABLE), OR (D)
PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 (IF AVAILABLE) OR ANY OTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. PRIOR TO THE
RESALE RESTRICTION TERMINATION DATE, THE COMPANY AND THE TRUSTEE RESERVE THE RIGHT TO
REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR

 

 

OTHER INFORMATION
SATISFACTORY TO THE COMPANY, AND IN EACH OF THE FOREGOING CASES, A CERTIFICATE OF TRANSFER
IN THE FORM APPEARING ON THE OTHER SIDE OF THIS SECURITY IS COMPLETED AND DELIVERED BY THE
TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER
THE RESALE RESTRICTION TERMINATION DATE.

     Any Note (or security issued in exchange or substitution therefor) as to which such
restrictions on transfer shall have expired in accordance with their terms or as to conditions for
removal of the foregoing legend set forth therein have been satisfied may, upon surrender of
such Note for exchange to the Note Registrar in accordance with the provisions of this Section
2.07(c), be exchanged for a new Note or Notes, of like tenor and aggregate principal amount, which
shall not bear the restrictive legend required by this Section 2.07(c).

     Notwithstanding any other provisions of this Indenture (other than the provisions set forth in
this Section 2.07(c)), a Global Note may not be transferred as a whole or in part except by the
Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or
another nominee of the Depositary or by the Depositary or any such nominee to a successor
Depositary or a nominee of such successor Depositary.

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

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

     If at any time the Depositary for a Global Note notifies the Company that it is unwilling or
unable to continue as Depositary for such Note, the Company may appoint a successor Depositary with
respect to such Note. If a successor Depositary is not appointed by the Company within ninety (90)
days after the Company receives such notice, the Company will execute, and the Trustee, upon
receipt of an Officers’ Certificate for the authentication and delivery of Notes, will authenticate
and deliver, Certificated Notes, in aggregate principal amount equal to the principal amount of
such Global Note, in exchange for such Global Note.

 

 

     If (i) a Certificated Note is issued in exchange for any portion of a Global Note or (ii) a
Global Note is issued or the Trustee shall make an endorsement on a Global Note to reflect an
increase in the Principal Amount of the Notes represented by such Global Note in exchange for any
Certificated Note, in either case after the close of business at the office or agency where such
exchange occurs on any Regular Record Date and before the open of business at such office or agency
on the next succeeding Interest Payment Date, interest will not be payable on such Interest Payment
Date in respect of such Certificated Note (in the cause of clause (i)) or Global Note (in the case
of clause (ii)), but will be payable on such Interest Payment Date only to the Person to whom
interest in respect of such portion of such Global Note (in the case of clause (ii))
or Certificated Note (in the cause of clause (ii)) is payable in accordance with the
provisions of this Indenture.

     Certificated Notes issued in exchange for all or a part of a Global Note pursuant to this
Section 2.07(c) shall be registered in such names and in such authorized denominations as the
Depositary, pursuant to instructions from its direct or indirect participants or otherwise, shall
instruct the Trustee. Upon execution and authentication, the Trustee shall deliver such
Certificated Notes to the Persons in whose names such Certificated Notes are so registered.

     At such time as all interests in a Global Note have been repurchased, redeemed, converted,
canceled, exchanged for Certificated Notes, or transferred to a transferee who receives
Certificated Notes thereof, such Global Note shall, upon receipt thereof, be canceled by the
Trustee in accordance with standing procedures and instructions existing between the Depositary and
the Custodian. At any time prior to such cancellation, if any interest in a Global Note is
exchanged for Certificated Notes, converted, repurchased or canceled, or transferred to a
transferee who receives Certificated Notes therefor or any Certificated Note is exchanged or
transferred for part of a Global Note, the principal amount of such Global Note shall, in
accordance with the standing procedures and instructions existing between the Depositary and the
Custodian, be appropriately reduced or increased, as the case may be, and an endorsement shall be
made on such Global Note by the Trustee to reflect such reduction or increase.

     Neither the Company, the Trustee nor any agent of the Company or the Trustee shall have any
responsibility or liability for any aspect of the records relating to or payments made on account
of beneficial ownership interests of a Global Note or maintaining, supervising or reviewing any
records relating to such beneficial ownership interests.

     (d) Until the Resale Restriction Termination Date, any stock certificate representing Common
Stock issued upon conversion of any Note shall bear a legend in substantially the following form,
unless such Common Stock has been sold pursuant to a registration statement that has been declared
effective under the Securities Act (and which continues to be effective at the time of such
transfer) or such Common Stock has been issued upon conversion of Notes that have been transferred
pursuant to a registration statement that has been declared effective under the Securities Act, or
unless otherwise agreed by the Company in writing with written notice thereof to the transfer
agent:

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR

 

 

PARTICIPATION HEREIN OR THEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH
TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.

THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE
TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) THAT
IS THE LATER OF (1) THE DATE THAT IS ONE YEAR AFTER THE DATE OF ORIGINAL
ISSUANCE OF THIS SECURITY, OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144 UNDER THE
SECURITIES ACT OR ANY SUCCESSOR PROVISION THERETO, AND (2) SUCH LATER DATE, IF ANY, AS MAY
BE REQUIRED BY APPLICABLE LAW, ONLY (A) TO MCMORAN EXPLORATION CO. OR ONE OF ITS
SUBSIDIARIES, (B) UNDER A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE
SECURITIES ACT, (C) TO A PERSON THE HOLDER REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL
BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT IS PURCHASING FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF ANOTHER QUALIFIED INSTITUTIONAL BUYER AND TO WHOM NOTICE IS
GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, ALL IN COMPLIANCE WITH RULE
144A (IF AVAILABLE), OR (D) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
(IF AVAILABLE) OR ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT. PRIOR TO THE RESALE RESTRICTION TERMINATION DATE, THE COMPANY AND THE
TRANSFER AGENT RESERVE THE RIGHT TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO THE COMPANY, AND IN EACH OF THE
FOREGOING CASES, A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS
SECURITY IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRANSFER AGENT. THIS LEGEND
WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION
DATE.

     Any such Common Stock as to which such restrictions on transfer shall have expired in
accordance with their terms or as to which the conditions for removal of the foregoing legend set
forth therein have been satisfied may, upon surrender of the certificates representing such shares
of Common Stock for exchange in accordance with the procedures of the transfer agent for the Common
Stock, be exchanged for a new certificate or certificates for a like number of shares of Common
Stock, which shall not bear the restrictive legend required by this Section 2.07(d).

     (e) Any Note or Common Stock issued upon the conversion or exchange of a Note that, prior to
the expiration of the holding period applicable to sales thereof under Rule 144 under the
Securities Act (or any successor provision), is purchased or owned by the Company or any Affiliate
thereof may not be resold by the Company or such Affiliate unless registered under the Securities
Act or resold pursuant to an exemption from the registration requirements of the

 

 

Securities Act in
a transaction which results in such Notes or Common Stock, as the case may be, no longer being
“restricted securities” (as defined under Rule 144).

     Section 2.08. Replacement Notes. If any mutilated Note is surrendered to the Trustee, or the
Company, the Trustee and, if applicable, the Authenticating Agent receive evidence to their
satisfaction of the destruction, loss or theft of any Note, and there is delivered to the Company,
the Trustee and, if applicable, the Authenticating Agent, such Note or indemnity as may be required
by them to save each of them harmless, then, in the absence of notice to the Company, the Trustee
or, if applicable, the Authenticating Agent, that such Note has been acquired by a bona fide
purchaser, the Company shall execute and upon its written request the Trustee or the
Authenticating Agent shall authenticate and deliver, in exchange for any such mutilated Note
or in lieu of any such destroyed, lost or stolen Note, a new Note of like tenor and principal
amount, bearing a number not contemporaneously outstanding.

     In case any such mutilated, destroyed, lost or stolen Note has become or is about to become
due and payable, or is about to be purchased by the Company pursuant to Article 3, the Company in
its discretion may, instead of issuing a new Note, pay or purchase such Note, as the case may be.

     Upon the issuance of any new Notes under this Section 2.08, the Company may require the
payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other expenses (including the fees and expenses of the Trustee and any
Authenticating Agent) connected therewith.

     Every new Note issued pursuant to this Section 2.08 in lieu of any mutilated, destroyed, lost
or stolen Note shall constitute an original additional contractual obligation of the Company,
whether or not the destroyed, lost or stolen Note shall be at any time enforceable by anyone, and
shall be entitled to all benefits of this Indenture equally and proportionately with any and all
other Notes duly issued hereunder.

     The provisions of this Section 2.08 are exclusive and shall preclude (to the extent lawful)
all other rights and remedies with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Notes.

     Section 2.09. Outstanding Notes; Determination of Holders’ Action. Notes outstanding at any
time are all the Notes authenticated by the Trustee except for those cancelled by it or delivered
to it for cancellation pursuant to Section 2.11, those paid pursuant to Section 3.03 and those
described in this Section 2.09 as not outstanding. A Note does not cease to be outstanding because
the Company or an Affiliate thereof holds the Note; provided, however, that in determining whether
the Holders of the requisite principal amount of the outstanding Notes have given or concurred in
any request, demand, authorization, direction, notice, consent or waiver hereunder, Notes owned by
the Company or any other obligor upon the Notes or any Affiliate of the Company or such other
obligor shall be disregarded and deemed not to be outstanding, except that, in determining whether
the Trustee shall be protected in relying upon any such request, demand, authorization, direction,
notice, consent or waiver, only Notes which a Responsible Officer of the Trustee actually knows to
be so owned shall be so disregarded.

 

 

Subject to the foregoing, only Notes outstanding at the time
of such determination shall be considered in any such determination (including determinations
pursuant to Articles 2, 3 and 10).

     If a Note is replaced pursuant to Section 2.08, it ceases to be outstanding unless the Trustee
receives proof satisfactory to it that the replaced Note is held by a bona fide purchaser.

     If the Paying Agent holds, in accordance with this Indenture, on the Business Day following
the Change of Control Purchase Date or the Maturity Date, money sufficient to pay Notes payable on
that date, then immediately after such Change of Control Purchase Date or Maturity Date, as the
case may be, such Notes shall cease to be outstanding and interest on such Notes shall cease to
accrue.

     If a Note is converted in accordance with Section 2.07(a), then from and after the Conversion
Date of such Note, such Note shall cease to be outstanding and interest shall cease to accrue on
such Note.

     Section 2.10. Temporary Notes. Pending the preparation of definitive Notes, the Company may
execute, and upon a Company Order the Trustee shall authenticate and deliver, temporary Notes which
are printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized
denomination, of the tenor of the definitive Notes in lieu of which they are issued and with such
appropriate insertions, omissions, substitutions and other variations as the officers executing
such Notes may determine, as conclusively evidenced by their execution of such Notes.

     If temporary Notes are issued, the Company will cause definitive Notes to be prepared without
unreasonable delay. After the preparation of definitive Notes, the temporary Notes shall be
exchangeable for definitive Notes upon surrender of the temporary Notes at the office or agency of
the Company designated for such purpose pursuant to Section 4.05, without charge to the Holder.
Upon surrender for cancellation of any one or more temporary Notes the Company shall execute and
the Trustee or an Authenticating Agent shall authenticate and deliver in exchange therefor a like
principal amount of definitive Notes of authorized denominations. Until so exchanged the temporary
Notes shall in all respects be entitled to the same benefits under this Indenture as definitive
Notes.

     Section 2.11. Cancellation. All Notes surrendered for payment, redemption, purchase by the
Company, conversion or registration of transfer or exchange shall, if surrendered to any person
other than the Trustee, be delivered to the Trustee and shall be promptly cancelled by it. The
Company may at any time deliver to the Trustee for cancellation any Notes previously authenticated
and delivered hereunder which the Company may have acquired in any manner whatsoever, and all Notes
so delivered shall be promptly cancelled by the Trustee. The Company may not issue new Notes to
replace Notes it has paid or delivered to the Trustee for cancellation or that any Holder has
converted pursuant to Section 10.01. No Notes shall be authenticated in lieu of or in exchange for
any Notes cancelled as provided in this Section 2.11, except as expressly permitted by this
Indenture. All cancelled Notes held by the Trustee shall be disposed of by the Trustee in its
customary manner.

 

 

     Section 2.12. Persons Deemed Owners. Prior to due presentment of a Note for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person
in whose name such Note is registered as the owner of such Note for the purpose of receiving
payment of principal of the Note or the payment of any Change of Control Purchase Price in respect
thereof, and interest thereon, for the purpose of conversion and for all other purposes whatsoever,
whether or not such Note be overdue, and neither the Company, the Trustee nor any agent of the
Company or the Trustee shall be affected by notice to the contrary.

     Section 2.13. CUSIP Numbers. The Company in issuing the Notes may use “CUSIP” numbers (if
then generally in use). No representation is made as to the correctness of such CUSIP numbers and
reliance may be placed only on the other identification numbers printed on the Notes. The Company
will promptly notify the Trustee of any change in the CUSIP numbers.

     Section 2.14. Default Interest. If the Company defaults in a payment of interest on the
Notes, it shall pay, or shall deposit with the Paying Agent money in immediately available funds
sufficient to pay, the defaulted interest, plus (to the extent lawful) any interest payable on the
defaulted interest, to the Persons who are Holders on a subsequent special record date. A special
record date, as used in this with respect to the payment of any defaulted interest, shall mean the
15th day next preceding the date fixed by the Company for the payment of defaulted interest,
whether or not such day is a Business Day. At least fifteen (15) days before the subsequent
special record date, the Company shall mail to each Holder and to the Trustee a notice that states
the subsequent special record date, the payment date and the amount of defaulted interest to be
paid.

     Section 2.15. Deemed Removal of Restrictive Legend. At any time prior to or after the Resale
Restriction Termination Date, the Company shall be entitled to:

     (a) instruct the Trustee in writing to remove the restrictive legend on the Notes specified in
Section 2.07(c) by delivering to the Trustee the Free Transferability Certificate substantially in
the form attached as Exhibit B hereto to this Indenture executed by an Officer of the Company, and,
at such time as (1) the Company has so delivered the Free Transferability Certificate to the
Trustee and (2) the Resale Restriction Termination Date has occurred, (A) such restrictive legend
shall be deemed to have been removed from any and all Global Notes and (B) the restricted CUSIP
number and the restricted ISIN number shall be deemed to have been removed from any and all Global
Notes and replaced with the unrestricted CUSIP number and the unrestricted ISIN number set forth
therein, in each case without further action on the part of Holders;

     (b) instruct the Trustee to notify Holders that such restrictive legend has been removed or
deemed to have been removed; and

     (c) instruct the Depositary to change the CUSIP number for the Notes to the unrestricted CUSIP
number for the Notes and to change the ISIN number for the Notes to the unrestricted ISIN number
for the Notes.

 

 

     Any failure
of the Company to comply with this Section 2.15 or of the Trustee to remove such
restrictive legend will not constitute a failure by the Company to comply with any of its covenants
or agreements set forth in this Indenture.

ARTICLE 3

Redemption and Repurchase Upon a Change of Control

     Section 3.01. Company’s Right to Redeem. Prior to December 30, 2015, the Notes shall not be
redeemable at the Company’s option. At any time on or after December 30, 2015 and prior to the
Maturity Date, the Company, at its option, may redeem the Notes, in whole or in part, in accordance
with the provisions of Section 3.02, Section 3.03 and Section 3.04, on the Redemption Date at a
redemption price (the “Redemption Price”) in cash equal to 100% of the principal amount of the
Notes being redeemed, plus any accrued and unpaid interest on the Notes being redeemed to, but
excluding, the Redemption Date (unless the Redemption Date falls after a
Regular Record Date but on or prior to the immediately succeeding Interest Payment Date, in
which case interest accrued to the Interest Payment Date will be paid to Holders of record of such
Notes on such Regular Record Date, and the Redemption Price will be equal to 100% of the principal
amount of the Notes to be redeemed), if the Closing Price of the Common Stock has exceeded 130% of
the Conversion Price for at least twenty (20) Trading Days in any consecutive thirty (30) Trading
Day period.

     Section 3.02. Notice of Optional Redemption; Selection of Notes. (a) In case the Company
shall desire to exercise the right to redeem all or, as the case may be, any part of the Notes
pursuant to Section 3.01, it shall fix a date for redemption (the “Redemption Date”), which must be
a Business Day, and it or, at its written request (which request must include the information
listed in Section 3.02(b) and be received by the Trustee not later than thirty-five (35) days prior
(or such shorter period of time as may be acceptable to the Trustee) to the Redemption Date), the
Trustee in the name of and at the expense of the Company, shall mail or cause to be mailed a notice
of such redemption (a “Redemption Notice”) not later than twenty (20) nor earlier than sixty (60)
days prior to the Redemption Date to each holder of Notes so to be redeemed as a whole or in part
at its last address as the same appears on the Note Register; provided that if the Company shall
give such notice, it shall also give written notice of the Redemption Date to the Trustee. Such
mailing shall be by first-class mail. The notice, if mailed in the manner herein provided, shall
be conclusively presumed to have been duly given, whether or not the holder receives such notice.
In any case, failure to give such notice by mail or any defect in the notice to the holder of any
Note designated for redemption as a whole or in part shall not affect the validity of the
proceedings for the redemption of any other Note. Concurrently with the mailing of any such
Redemption Notice, the Company shall issue a press release announcing such redemption, the form and
content of which press release shall be determined by the Company in its sole discretion. The
failure to issue any such press release or any defect therein shall not affect the validity of the
Redemption Notice or any of the proceedings for the redemption of any Note called for redemption.

     (b) Each such Redemption Notice shall specify:

     (i) the aggregate principal amount of Notes to be redeemed,

 

 

     (ii) the CUSIP, ISIN or similar number or numbers of the Notes being redeemed,

     (iii) the Redemption Date,

     (iv) the Redemption Price,

     (v) the place or places of payment,

     (vi) that payment will be made upon presentation and surrender of such Notes,

     (vii) that interest accrued and unpaid up to, but not including, the Redemption Date
will be paid as specified in said notice,

     (viii) that on and after the Redemption Date interest thereon or on the portion thereof
to be redeemed will cease to accrue,

     (ix) the Conversion Rate and

     (x) the date on which the right to convert such Notes or portions thereof into shares
of Common Stock will expire.

If fewer than all the Notes are to be redeemed, the Redemption Notice shall identify the Notes to
be redeemed (including CUSIP, ISIN or similar number or numbers, if any). In case any Note is to
be redeemed in part only, the Redemption Notice shall state the portion of the principal amount
thereof to be redeemed and shall state that, on and after the Redemption Date, upon surrender of
such Note, a new Note or Notes in principal amount equal to the unredeemed portion thereof will be
issued.

     (c) On or prior to the Redemption Date specified in the Redemption Notice given as provided in
this Section 3.02, the Company will deposit with the Trustee or with one or more Paying Agents an
amount of money in immediately available funds sufficient to redeem on the Redemption Date all the
Notes (or portions thereof) so called for redemption (other than those theretofore surrendered for
conversion into shares of Common Stock) at the appropriate Redemption Price; provided that if such
payment is made on the Redemption Date it must be received by the Trustee or Paying Agent, as the
case may be, by 10:00 a.m., New York City time, on such date. The Company shall be entitled to
retain any interest, yield or gain on amounts deposited with the Trustee or any Paying Agent
pursuant to this Section 3.02(c) in excess of amounts required hereunder to pay the Redemption
Price. Subject to the last sentence of Section 3.02(d), if any Note called for redemption is
converted pursuant hereto prior to such Redemption Date, any money deposited with the Trustee or
any Paying Agent or so segregated and held in trust for the redemption of such Note shall be paid
to the Company upon its written request, or, if then held by the Company, shall be discharged from
such trust. Whenever any Notes are to be redeemed, the Company will give the Trustee written
notice in the form of an Officers’ Certificate not later than thirty-five (35) days (or such
shorter period of time as may be acceptable to the Trustee) prior to the Redemption Date as to the
aggregate principal amount of Notes to be redeemed.

 

 

     (d) If the Company opts to redeem fewer than all of the Outstanding Notes, the Trustee shall
select or cause to be selected the Notes or portions thereof of the Global Note or the Notes in
certificated form to be redeemed (in Principal Amounts of $1,000 or integral multiples thereof) by
lot, on a pro rata basis (or, in the case of Global Notes, the Trustee will select Notes for
redemption based on DTC’s method that most nearly approximates a pro rata selection) or by another
method the Trustee deems fair and appropriate. If any Note selected for partial redemption is
submitted for conversion in part after such selection, the portion of such Note submitted for
conversion shall be deemed (so far as may be possible) to be from the portion selected for
redemption. The Notes (or portions thereof) so selected shall be deemed duly selected for
redemption for all purposes hereof, notwithstanding that any such Note is submitted for conversion
in part before the mailing of the Redemption Notice.

     Upon any redemption of fewer than all of the outstanding Notes, the Company and the Trustee
may (but need not), solely for purposes of determining the pro rata allocation among such Notes as
are unconverted and outstanding at the time of redemption, treat as outstanding any Notes
surrendered for conversion during the period of fifteen (15) days next preceding the mailing of a
Redemption Notice and may (but need not) treat as outstanding any Note authenticated and delivered
during such period in exchange for the unconverted portion of any Note converted in part during
such period.

     Section 3.03. Payment of Notes Called for Redemption by the Company. If notice of redemption
has been given as provided in Section 3.02, the Notes or portion of Notes with respect to which
such notice has been given shall, unless converted into shares of Common Stock pursuant to the
terms hereof, become due and payable on the Redemption Date and at the place or places stated in
such notice at the applicable Redemption Price, unless the Company shall default in the payment of
the Redemption Price. Interest on the Notes or portion of Notes so called for redemption shall
cease to accrue and after the close of business on the second Business Day immediately preceding
the Redemption Date (unless the Company shall default in the payment of the Redemption Price), such
Notes shall cease to be convertible into shares of Common Stock and, except as provided in the last
paragraph of this Section 3.03, to be entitled to any benefit or security under this Indenture, and
the holders thereof shall have no right in respect of such Notes except the right to receive the
Redemption Price thereof. On presentation and surrender of such Notes at a place of payment in
said notice specified, the said Notes or the specified portions thereof shall be paid and redeemed
by the Company at the applicable Redemption Price; provided that if the applicable Redemption Date
is an Interest Payment Date, the interest payable on such Interest Payment Date shall be paid on
such Interest Payment Date to the holders of record of such Notes on the applicable Regular Record
Date instead of the holders surrendering such Notes for redemption on such date.

     Upon presentation of any Note redeemed in part only, the Company shall execute and the Trustee
shall authenticate and make available for delivery to the holder thereof, at the expense of the
Company, a new Note or Notes, of authorized denominations, in principal amount equal to the
unredeemed portion of the Note or Notes so presented.

     Notwithstanding the foregoing, the Trustee shall not redeem any Notes or mail any Redemption
Notices during the continuance of a default in payment of interest on the Notes. If any Note
called for redemption shall not be so paid upon surrender thereof for redemption, the

 

 

principal
shall, until paid or duly provided for, continue to bear interest at the rate borne by the Note,
compounded semiannually, and such Note shall remain convertible into shares of Common Stock until
the principal and interest shall have been paid or duly provided for. The Company will notify all
of the Holders if the Company redeems any of the Notes.

     Section 3.04. Conversion Arrangement on Call for Redemption. In connection with any
redemption of Notes, the Company may arrange for the purchase and conversion of any Notes by an
agreement with one or more investment banks or other purchasers to purchase such Notes by paying to
the Trustee in trust for the Holders, on or before the date fixed for redemption, an amount not
less than the applicable Redemption Price of such Notes. Notwithstanding anything to the contrary
contained in this Section 3.04, the obligation of the Company to pay the Redemption Price of such
Notes shall be deemed to be satisfied and discharged to the extent such
amount is so paid by such purchasers. If such an agreement is entered into, a copy of which
will be filed with the Trustee prior to the Redemption Date, any Notes not duly surrendered for
conversion by the Holders thereof may, at the option of the Company, be deemed, to the fullest
extent permitted by law, acquired by such purchasers from such Holders and surrendered by such
purchasers for conversion, all as of immediately prior to the close of business on the Redemption
Date (and the right to convert any such Notes shall be extended through such time), subject to
payment of the above amount as aforesaid. At the direction of the Company, the Trustee shall hold
and dispose of any such amount paid to it in the same manner as it would monies deposited with it
by the Company for the redemption of Notes. Without the Trustee’s prior written consent, no
arrangement between the Company and such purchasers for the purchase and conversion of any Notes
shall increase or otherwise affect any of the powers, duties, responsibilities or obligations of
the Trustee as set forth in this Indenture.

     Section 3.05. Purchase of Notes at Option of the Holder upon Change of Control. (a) If there
shall have occurred a Change of Control, all or any portion of the Notes of any Holder equal to
$1,000 or a whole multiple of $1,000, shall be repurchased by the Company for cash, at the option
of such Holder, at a repurchase price (the “Change of Control Purchase Price”) equal to 100% of the
aggregate principal amount of the Notes to be repurchased, together with accrued and unpaid
interest, if any, to, but excluding, the purchase date, on the date (the “Change of Control
Purchase Date”) that is forty-five (45) days after the date the Company delivered the notice
required under Section 3.05(b) (or if such forty-fifth (45th) day is not a Business Day, the next
succeeding Business Day); provided, however, that if the Change of Control Purchase Date is after a
Regular Record Date but on or prior to the corresponding Interest Payment Date, the accrued and
unpaid interest becoming due on such Interest Payment Date shall be payable to the Holders of such
Notes, or one or more predecessor Notes, registered as such as of the close of business on the
relevant Regular Record Date according to their terms, and the Change of Control Purchase Price
shall be equal to 100% of the aggregate principal amount of the Notes to be repurchased.

     Whenever in this Indenture or Exhibit A annexed hereto there is a reference, in any
context, to the principal of any Note as of any time, such reference shall be deemed to include
reference to the Change of Control Purchase Price in respect of such Note to the extent that such
Change of Control Purchase Price is, was or would be so payable at such time, and express mention
of the Change of Control Purchase Price in any provision of this Indenture shall not be

 

 

construed
as excluding the Change of Control Purchase Price in those provisions of this Indenture when such
express mention is not made.

     (b) Prior to or on the 30th day after the occurrence of a Change of Control, the Company, or,
at the written request and expense of the Company prior to or on the 30th day after such
occurrence, the Trustee, shall give to all Holders, in the manner provided herein, notice of the
occurrence of the Change of Control and of the repurchase right arising as a result thereof. The
Company shall also deliver a copy of such notice of a repurchase right to the Trustee. The notice
shall include a form of Change of Control Purchase Notice to be completed by the Holder and shall
state:

     (i) briefly, the events causing a Change of Control and the date of such Change of
Control;

     (ii) the date by which the Change of Control Purchase Notice pursuant to this Section
3.05(b) must be delivered by a Holder that wishes to exercise its repurchase right;

     (iii) the Change of Control Purchase Date;

     (iv) the Change of Control Purchase Price;

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

     (vi) that Notes as to which a Change of Control Purchase Notice has been given may be
converted pursuant to Section 10.01 only if the Change of Control Purchase Notice has been
withdrawn in accordance with the terms of this Indenture;

     (vii) that Notes must be surrendered to the Paying Agent to collect payment;

     (viii) that the Change of Control Purchase Price for any Note as to which a Change of
Control Purchase Notice has been duly given and not withdrawn will be paid promptly
following the later of the Change of Control Purchase Date and the time of surrender of such
Note as described in clause (vii) above;

     (ix) briefly, the procedures the Holder must follow to exercise rights under this
Section 3.05;

     (x) briefly, the conversion rights of the Notes, including the Conversion Rate and any
adjustments thereto;

     (xi) the procedures for withdrawing a Change of Control Purchase Notice; and

     (xii) the CUSIP number of the Notes.

     (c) A Holder may exercise its rights specified in this Section 3.05 upon delivery of a written
notice of purchase (a “Change of Control Purchase Notice”) to the Paying Agent prior to the close
of business on the Business Day immediately preceding the Change of Control Purchase Date, stating:

 

 

     (i) the certificate number of the Note, if any, which the Holder will deliver to be
repurchased or the appropriate Depositary procedures if the Notes are not in certificated
form;

     (ii) the portion of the principal amount of the Note which the Holder will deliver to
be repurchased, which portion must be $1,000 or an integral multiple thereof; and

     (iii) that such Note shall be repurchased pursuant to the terms and conditions
specified in this Indenture;

provided, however, that if the Notes are not in certificated form, a Holder’s Change of Control
Purchase must comply with the appropriate DTC procedures.

     The delivery of such Note to the Paying Agent prior to the Change of Control Purchase Date
(together with all necessary endorsements) at the offices of the Paying Agent shall be a condition
to the receipt by the Holder of the Change of Control Purchase Price therefor; provided, however,
that such Change of Control Purchase Price shall be so paid pursuant to this Section 3.05 only if
the Note so delivered to the Paying Agent shall conform in all respects to the description thereof
set forth in the related Change of Control Purchase Notice.

     The Company shall purchase from the Holder thereof, pursuant to this Section 3.05, a portion
of a Note so delivered for repurchase if the principal amount of such portion is $1,000 or an
integral multiple of $1,000. Provisions of this Indenture that apply to the purchase of all of a
Note also apply to the purchase of such portion of such Note.

     Any purchase by the Company contemplated pursuant to the provisions of this Section 3.05 shall
be consummated by payment of the Change of Control Purchase Price to the Holder promptly following
the later of the Change of Control Purchase Date and the time of delivery of the Note to the Paying
Agent in accordance with this Section 3.05.

     Notwithstanding anything herein to the contrary, any Holder delivering to the Paying Agent the
Change of Control Purchase Notice contemplated by this Section 3.05(c) shall have the right to
withdraw such Change of Control Purchase Notice at any time prior to the close of business on the
Business Day immediately preceding the Change of Control Purchase Date by delivery of a written
notice of withdrawal to the Paying Agent in accordance with Section 3.06.

     The Paying Agent shall promptly notify the Company of the receipt by it of any Change of
Control Purchase Notice or written withdrawal thereof.

     Section 3.06. Effect of Change of Control Purchase Notice. Upon receipt by the Paying Agent
of the Change of Control Purchase Notice specified in Section 3.05(c), the Holder of the Note in
respect of which such Change of Control Purchase Notice was given shall (unless such Change of
Control Purchase Notice is withdrawn as specified in the following two paragraphs of this Section
3.06) thereafter be entitled to receive solely the Change of Control Purchase Price with respect to
such Note. Such Change of Control Purchase Price shall be paid to such Holder, subject to receipt
of consideration for the Notes by the Paying Agent, promptly following the later of (x) the Change
of Control Purchase Date with respect to such Note (provided the

 

 

conditions in Section 3.05(c) have
been satisfied) and (y) the time of delivery of such Note to the Paying Agent by the Holder thereof
in the manner required by Section 3.05(c). Notes in respect of which a Change of Control Purchase
Notice has been given by the Holder thereof may not be converted pursuant to Section 10.01 on or
after the date of the delivery of such Change of Control Purchase Notice unless such Change of
Control Purchase Notice has first been validly withdrawn as specified in the following two
paragraphs.

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

     (i) the certificate number of the Note in respect of which such notice of withdrawal is
being submitted or, if not in certificated form, the applicable Depositary procedures;

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

     (iii) the principal amount, if any, of such Note which remains subject to the original
Change of Control Purchase Notice and which has been or will be delivered for purchase by
the Company.

     There shall be no purchase of any Notes pursuant to Section 3.05(c) if there has occurred
(prior to, on or after, as the case may be, the giving, by the Holders of such Notes, of the
required Change of Control Purchase Notice) and is continuing an Event of Default (other than a
default in the payment of the Change of Control Purchase Price with respect to such Notes). The
Paying Agent will promptly return to the respective Holders thereof any Notes (x) with respect to
which a Change of Control Purchase Notice has been withdrawn in compliance with this Indenture, or
(y) held by it during the continuance of an Event of Default (other than a default in the payment
of the Change of Control Purchase Price with respect to such Notes) in which case, upon such
return, the Change of Control Purchase Notice with respect thereto shall be deemed to have been
withdrawn.

     Section 3.07. Deposit of Change of Control Purchase Price. Prior to 10:00 a.m. (New York
City time) on the Change of Control Purchase Date, 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) an amount of cash (in immediately
available funds if deposited on such Business Day) sufficient to pay the aggregate Change of
Control Purchase Price of all the Notes or portions thereof which are to be purchased as of the
Change of Control Purchase Date.

     If the Trustee or other Paying Agent appointed by the Company, or the Company or an Affiliate
of the Company, is acting as the Paying Agent, holds cash sufficient to pay the aggregate Change of
Control Purchase Price of all the Notes or portions thereof that are to be purchased as of the
Change of Control Purchase Date, then immediately after the Change of Control Purchase Date (i)
such Notes will cease to be outstanding, (ii) interest on such Notes will

 

 

cease to accrue and (iii)
all other rights of the holders of such Notes will terminate other than the right to receive the
Change of Control Purchase Price upon delivery of the Notes, whether or not book-entry transfer of
the Notes has been made or the Notes have been delivered to the Trustee or Paying Agent.

     Section 3.08. Notes Purchased in Part. Any Note which is to be purchased only in part shall
be surrendered at the office of the Paying Agent (with, if the Company or the Trustee so requires,
due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or such Holder’s attorney duly
authorized in writing) and the Company shall execute and the Trustee shall authenticate and
deliver to the Holder of such Note, without service charge, a new Note or Notes, of any authorized
denomination as requested by such Holder in aggregate principal amount equal to, and in exchange
for, the portion of the principal amount of the Note so surrendered which is not purchased.

     Section 3.09. Covenant to Comply with Securities Laws upon Purchase of Notes. In connection
with any offer to purchase or purchase of Notes under Section 3.05 (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, Rule 14e-1 and any other tender offer
rules under the Exchange Act which may then be applicable, (ii) file the related Schedule TO (or
any successor schedule, form or report) or any other schedule required 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 3.05 to be exercised in the time and in the manner specified herein.

     Section 3.10. Repayment to the Company. The Trustee and the Paying Agent shall return to the
Company any cash that remains unclaimed, together with any interest thereon, held by them for the
payment of the Change of Control Purchase Price; provided, however, that to the extent that the
aggregate amount of cash deposited by the Company pursuant to Section 3.07 exceeds the aggregate
Change of Control Purchase Price of the Notes or portions thereof which the Company is obligated to
purchase as of the Change of Control Purchase Date, then promptly after the Business Day following
the Change of Control Purchase Date the Trustee shall return any such excess to the Company
together with any interest thereon.

ARTICLE 4

Covenants

     Section 4.01. Payment of Principal of and Interest on the Notes. The Company will duly and
punctually pay the principal (including the Redemption Price and Change of Control Purchase Price,
in each case if applicable) of and interest on the Notes in accordance with the terms of the Notes
and this Indenture. The Company will deposit or cause to be deposited with the Trustee as directed
by the Trustee, no later than the relevant Interest Payment Date or Maturity Date, as the case may
be, all payments so due. The principal (including the Redemption Price and Change of Control
Purchase Price, in each case if applicable) of and interest on any Note shall be considered paid on
the applicable date due if on the relevant due

 

 

date the Trustee or the Paying Agent holds, in
accordance with this Indenture, money sufficient to pay all such amounts then due.

     The Company shall, to the extent permitted by law, pay interest on overdue amounts at the
stated interest rate of the Notes, compounded semiannually, which interest shall accrue from the
date such overdue amount was originally due to the date payment of such amount, including interest
thereon, has been made or duly provided for. All such interest shall be payable on demand.

     Section 4.02. Reports by the Company. The Company shall file with the Trustee within 15 days
after the same are filed with the Commission, copies of any documents or reports that the Company
is required to file with the Commission pursuant to Section 13 or 15(d) of the Exchange Act (giving
effect to any grace period provided by Rule 12b-25 under the Exchange Act). Any such document or
report that the Company files with the Commission via the Commission’s EDGAR system shall be deemed
to be filed with the Trustee for purposes of this Section 4.02 at the time such documents are filed
via the EDGAR system. Delivery of such reports, information and documents to the Trustee is for
informational purposes only and the Trustee’s receipt of such shall not constitute constructive
notice of any information contained therein or determinable from information contained therein,
including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers’ Certificates), and the Trustee shall be responsible only
for maintaining such reports and presenting them to the Holders upon request.

     Section 4.03. Compliance Certificate. The Company shall deliver to the Trustee within one
hundred twenty (120) days after the end of each fiscal year of the Company (beginning with the
fiscal year ending on December 31, 2010) an Officers’ Certificate, stating whether or not to the
best knowledge of the signers thereof the Company is in default in the performance and observance
of any of the terms, provisions and conditions of this Indenture (without regard to any period of
grace or requirement of notice provided hereunder) and if the Company shall be in default,
specifying all such defaults and the nature and status thereof of which they may have knowledge.

     Section 4.04. Further Instruments and Acts. Upon request of the Trustee, the Company will
execute and deliver such further instruments and do such further acts as may be reasonably
necessary or proper to carry out more effectively the purposes of this Indenture.

     Section 4.05. Maintenance of Office or Agency. The Company will maintain in the Borough of
Manhattan, the City of New York, an office or agency of the Trustee, Note Registrar, Paying Agent
and Conversion Agent where Notes may be presented or surrendered for payment, where Notes may be
surrendered for registration of transfer, exchange, purchase or conversion and where notices and
demands to or upon the Company in respect of the Notes and this Indenture may be served. The
Corporate Trust Office and each office or agency of the Trustee in the Borough of Manhattan, the
City of New York, shall initially be one such office or agency for all of the aforesaid purposes.
The Company shall give prompt written notice to the Trustee of the location, and of any change in
the location, of any such office or agency (other than a change in the location of the office of
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 address of the Trustee set forth in.

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

     Section 4.06. Delivery of Certain Information. At any time when the Company is not subject
to Section 13 or 15(d) of the Exchange Act, upon the request of a holder or any beneficial holder
of Notes or shares of Common Stock issued upon conversion thereof, the Company will promptly
furnish or cause to be furnished Rule 144A Information to such Holder or any beneficial holder of
Notes or holder of shares of Common Stock issued upon conversion of Notes, or to a prospective
purchaser of any such security designated by any such holder, as the case may be, to the extent
required to permit compliance by such Holder or holder with Rule 144A under the Securities Act in
connection with the resale of any such security. “Rule 144A Information” shall be such information
as is specified pursuant to Rule 144A(d)(4) under the Securities Act.

     Section 4.07. Existence. Subject to Article 5, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its existence and rights (charter
and statutory); provided, however, that the Company shall not be required to preserve any such
right if the Company shall determine that the preservation thereof is no longer desirable in the
conduct of the business of the Company and that the loss thereof is not disadvantageous in any
material respect to the Holders.

     Section 4.08. Maintenance of Properties. The Company will cause all properties used or
useful in the conduct of its business or the business of any Significant Subsidiary to be
maintained and kept in good condition, repair and working order and supplied with all necessary
equipment and will cause to be made all necessary repairs, renewals, replacements, betterments and
improvements thereof, all as in the judgment of the Company may be necessary so that the business
carried on in connection therewith may be properly and advantageously conducted at all times;
provided, however, that nothing in this Section 4.08 shall prevent the Company from discontinuing
the operation or maintenance of any of such properties if such discontinuance is, in the judgment
of the Company, desirable in the conduct of its business or the business of any Significant
Subsidiary and not disadvantageous in any material respect to the Holders.

     Section 4.09. Payment of Taxes and Other Claims. The Company will pay or discharge, or cause
to be paid or discharged, before the same may become delinquent, (i) all taxes, assessments and
governmental charges levied or imposed upon the Company or any Significant Subsidiary or upon the
income, profits or property of the Company or any Significant Subsidiary, (ii) all claims for
labor, materials and supplies which, if unpaid, might by law become a lien or charge upon the
property of the Company or any Significant Subsidiary and (iii) all stamps and other duties, if
any, which may be imposed by the United States or any political subdivision thereof or therein in
connection with the issuance, transfer, exchange or conversion of any Notes or with respect to this
Indenture; provided, however, that, in the case of clauses (i) and (ii), the

 

 

Company shall not be
required to pay or discharge or cause to be paid or discharged any such tax, assessment, charge or
claim (A) if the failure to do so will not, in the aggregate, have a material adverse impact on the
Company or (B) if the amount, applicability or validity is being contested in good faith by
appropriate proceedings.

     Section 4.10. Additional Interest Notice. In the event that the Company is required to pay
Additional Interest to Holders of Notes pursuant to the Registration Rights Agreement, the Company
will provide written notice (“Additional Interest Notice”) to the Trustee of its obligation to pay
Additional Interest no later than fifteen (15) days prior to the proposed payment
date for the Additional Interest, and the Additional Interest Notice shall set forth the
amount of Additional Interest to be paid by the Company on such payment date. The Trustee shall
not at any time be under any duty or owe a responsibility to any holder of Notes to determine the
Additional Interest, or with respect to the nature, extent or calculation of the amount of
Additional Interest when made, or with respect to the method employed in such calculation of the
Additional Interest.

ARTICLE 5

Successor Corporation

     Section 5.01. When the Company May Merge or Transfer Assets. The Company shall not
consolidate with, merge with or into any other Person or convey, transfer or lease all or
substantially all of its properties and assets to any Person, unless:

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

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

     (c) the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that such consolidation, merger, conveyance, transfer or lease and, if a
supplemental indenture is required in connection with such transaction, such supplemental
indenture, comply with this Article 5 and that all conditions precedent herein provided for
relating to such transaction have been satisfied.

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

 

 

     The successor Person formed by such consolidation or into which the Company is merged or the
successor Person 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 had been named as the Company herein; and thereafter, except
in the case of (i) a lease and (ii) the obligations the Company may have under a supplemental
indenture pursuant to Section 10.12, the Company shall be discharged from all obligations and
covenants under this Indenture and the Notes. Subject to Section 10.12, the Company, the Trustee
and the successor Person shall enter into a supplemental indenture to
evidence the succession and substitution of such successor Person and such discharge and
release of the Company.

ARTICLE 6

Defaults and Remedies

     Section 6.01. Events of Default. An “Event of Default” occurs if:

     (a) the Company fails to pay when due the principal of any of the Notes at maturity, upon
exercise of a repurchase right or otherwise;

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

     (c) the Company fails to deliver shares of Common Stock, together with cash in lieu of any
fractional share, when such Common Stock or cash in lieu of any fractional share is required to be
delivered upon conversion of a Note and such failure continues for ten (10) days after such
delivery date;

     (d) the Company fails to give notice regarding a Change of Control within the time period
specified in Section 3.05(b);

     (e) the Company fails to perform or observe any other term, covenant or agreement contained in
the Notes or this Indenture for a period of sixty (60) days after receipt by the Company of a
Notice of Default;

     (f) the Company or any Significant Subsidiary fails to make any payment by the end of the
applicable grace period, if any, after the final scheduled payment date for such payment with
respect to any indebtedness for borrowed money in an aggregate amount in excess of $10 million or
indebtedness for borrowed money of the Company or any Significant Subsidiary in an aggregate amount
in excess of $10 million shall have been accelerated or otherwise declared due and payable, or
required to be prepaid or repurchased (other than by regularly scheduled required prepayment) prior
to the scheduled maturity thereof as a result of a default with respect to such indebtedness, in
either case without such indebtedness referred to in this clause having been discharged, cured,
waived, rescinded or annulled, for a period of 30 days after receipt by the Company of a Notice of
Default;

 

 

     (g) the Company, any Significant Subsidiary of the Company or any Subsidiaries of the Company
which in the aggregate would constitute a Significant Subsidiary pursuant to or under or within the
meaning of any Bankruptcy Law:

     (i) commences a voluntary case or proceeding;

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

     (iii) consents to the appointment of a Custodian of it or for any substantial part of
its property;

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

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

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

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

     (i) is for relief against the Company or any Significant Subsidiary or any Subsidiaries
of the Company which in the aggregate would constitute a Significant Subsidiary in an
involuntary case or proceeding, or adjudicates the Company or any Significant Subsidiary or
any Subsidiaries of the Company which in the aggregate would constitute a Significant
Subsidiary insolvent or bankrupt;

     (ii) appoints a Custodian of the Company or any Significant Subsidiary or any
Subsidiaries of the Company which in the aggregate would constitute a Significant Subsidiary
or for any substantial part of its or their properties; or

     (iii) orders the winding-up or liquidation of the Company or any Significant Subsidiary
or any Subsidiaries of the Company which in the aggregate would constitute a Significant
Subsidiary;

and the order or decree remains unstayed and in effect for sixty (60) days.

     A Default under clause (e) or (f) above is not an Event of Default until the Trustee notifies
the Company, or the Holders of at least 25% in aggregate principal amount of the Notes at the time
outstanding notify the Company and the Trustee, of the Default and the Company does not cure such
Default (and such Default is not waived) within the time specified in clause (e) or (f) above after
actual receipt of such notice. Any such notice must specify the Default, demand that it be
remedied and state that such notice is a “Notice of Default.”

     The Company shall deliver to the Trustee, within five (5) Business Days of becoming aware of
the occurrence of an Event of Default, written notice thereof. In addition, the Company

 

 

shall
deliver to the Trustee, within thirty (30) days after it becomes aware of the occurrence thereof,
written notice of any event which with the lapse of time would become an Event of Default, its
status and what action the Company is taking or proposes to take with respect thereto.

     Section 6.02. Acceleration. If an Event of Default (other than an Event of Default specified
in Section 6.01(g) or 6.01(h)) occurs and is continuing, the Trustee by notice to the Company, or
the Holders of at least 25% in aggregate principal amount of the Notes at the time outstanding by
notice to the Company and the Trustee, may declare the Notes due and payable at their principal
amount together with accrued and unpaid interest thereon. Upon a declaration of
acceleration, such principal and accrued and unpaid interest to the date of payment shall be
immediately due and payable. If an Event of Default is cured prior to any such declaration by the
Trustee or the Holders, the Trustee and the Holders shall not be entitled to declare the Notes due
and payable as provided herein as a result of such cured Event of Default and any such cured Event
of Default shall be deemed waived by the Holders and the Trustee.

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

     The Holders of a majority in aggregate principal amount of the Notes at the time outstanding,
by notice to the Trustee (and without notice to any other Holder) may rescind or annul an
acceleration and its consequences if the rescission would not conflict with any judgment or decree
and if all existing Events of Default have been cured or waived except nonpayment of the principal
and any accrued cash interest that have become due solely as a result of acceleration and if all
amounts due to the Trustee under have been paid. No such rescission shall affect any subsequent
Default or impair any right consequent thereto. Notwithstanding anything to the contrary herein,
no such rescission or annulment shall extend to or shall affect any Default or Event of Default
resulting from (i) the nonpayment of the principal of, or accrued and unpaid interest on, any
Notes, (ii) a failure to repurchase any Notes when required or (iii) a failure to deliver the
shares of Common Stock due upon conversion of the Notes, together with a cash payment in lieu of
any fractional shares.

     Section 6.03. Additional Interest. Notwithstanding anything in this Indenture or in the
Notes to the contrary, to the extent the Company elects, the sole remedy for Event of Default
relating to the Company’s failure to comply with its obligations as set forth in Section 4.02 shall
after the occurrence of such an Event of Default consist exclusively of the right to receive
Additional Interest on the Notes at a rate equal to 0.25% per annum of the principal amount of the
Notes outstanding for each day during the 60-day period on which such Event of Default is
continuing beginning on, and including, the date on which such an Event of Default first occurs. If
the Company so elects, such Additional Interest shall be payable in the same manner and on the same
dates as regular interest on the Notes. On the 61st day after such Event of Default (if the Event
of Default relating to the Company’s failure to file is not cured or waived prior to such 61st
day), the Notes will be subject to acceleration as provided in Section 6.02. In the event the
Company does not elect to pay Additional Interest following an event of Default in accordance with
this Section 6.03, the Notes shall be subject to acceleration as provided in Section 6.02.

 

 

     In order to elect to pay Additional Interest as the sole remedy during the first 60 days after
the occurrence of any Event of Default described in the immediately preceding paragraph, the
Company must notify all Holders of the Notes, the Trustee and the Paying Agent of such election
prior to the beginning of such 60-day period. Upon the failure to timely give such notice, the
Notes shall be immediately subject to acceleration as provided in Section 6.02.

     Section 6.04. Other Remedies. If an Event of Default occurs and is continuing, the Trustee
may pursue any available remedy to collect the payment of the principal of and any
accrued cash interest on the Notes or to enforce the performance of any provision of the Notes
or this Indenture.

     The Trustee may maintain a proceeding even if the Trustee does not possess any of the Notes or
produce any of the Notes 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 6.05. Waiver of Past Defaults. The Holders of a majority in aggregate principal
amount of the Notes at the time outstanding, by notice to the Trustee (and without notice to any
other Holder), may waive an existing Event of Default and its consequences except (1) an Event of
Default described in Section 6.01(a) or (2) an Event of Default in respect of a provision that
under cannot be amended without the consent of each Holder affected or (3) an Event of Default
which constitutes a failure to convert any Note in accordance with the terms of Section 6.01(c).
When an Event of Default is waived, it is deemed cured, but no such waiver shall extend to any
subsequent or other Event of Default or impair any consequent right.

     Section 6.06. Control by Majority. The Holders of a majority in aggregate principal amount
of the Notes at the time outstanding may direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee or of exercising any trust or power conferred on
the Trustee. However, the Trustee may refuse to follow any direction that conflicts with law or
this Indenture or that the Trustee determines in good faith is prejudicial to the rights of other
Holders or would involve the Trustee in personal liability unless the Trustee is offered indemnity
satisfactory to it against loss, liability or expense.

     Section 6.07. Limitation on Suits. A Holder may not pursue any remedy with respect to this
Indenture or the Notes unless:

     (a) the Holder gives to the Trustee written notice stating that an Event of Default is
continuing;

     (b) the Holders of at least 25% in aggregate principal amount of the Notes at the time
outstanding make a written request to the Trustee to pursue the remedy;

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

     (d) the Trustee does not comply with the request within sixty (60) days after receipt of such
notice, request and offer of security or indemnity; and

 

 

     (e) the Holders of a majority in aggregate principal amount of the Notes at the time
outstanding do not give the Trustee a direction inconsistent with the request during such sixty
(60) day period.

     A Holder may not use this Indenture to prejudice the rights of any other Holder or to obtain a
preference or priority over any other Holder.

     Section 6.08. Rights of Holders to Receive Payment. Notwithstanding any other provision of
this Indenture, the right of any Holder to receive payment of the principal (including the
Redemption Price and Change of Control Purchase Price, in each case if applicable) of and any
accrued but unpaid interest on the Notes held by such Holder, on or after the respective due dates
provided herein, and to convert the Notes in accordance herewith, 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 6.09. Collection Suit by Trustee. If an Event of Default occurs and is continuing,
the Trustee may recover judgment in its own name and as trustee of an express trust against the
Company for the whole amount owing with respect to the Notes and the amounts provided for in
Section 7.06.

     Section 6.10. Trustee May File Proofs of Claim. In case of the pendency of any receivership,
insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to the Company or any other obligor upon the Notes or the property of
the Company or of such other obligor or their creditors, the Trustee (irrespective of whether the
principal amount, Change of Control Purchase Price or any accrued cash interest in respect of the
Notes shall then be due and payable as therein expressed or by declaration or otherwise and
irrespective of whether the Trustee shall have made any demand on the Company for the payment of
any such amount) shall be entitled and empowered, by intervention in such proceeding or otherwise:

     (a) to file and prove a claim for the whole amount of the principal amount, Change of Control
Purchase Price or any accrued cash interest and to file such other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel or any other amounts due the Trustee under Section 7.06) and of the Holders allowed in such
judicial proceeding, and

     (b) 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 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 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 7.06.

 

 

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

     Section 6.11. Priorities. If the Trustee collects any money pursuant to this Article 6, it
shall pay out the money in the following order:

     (a) to the Trustee for amounts due under Section 7.06;

     (b) to Holders for amounts due and unpaid on the Notes for the principal amount, Change of
Control Purchase Price or any accrued cash interest as the case may be, ratably, without preference
or priority of any kind, according to such amounts due and payable on the Notes; and

     (c) the balance, if any, to the Company.

     The Trustee may fix a record date and payment date for any payment to Holders pursuant to this
Section 6.11. At least fifteen (15) days before such record date, the Trustee shall mail to each
Holder and the Company a notice that states the record date, the payment date and the amount to be
paid.

     Section 6.12. Undertaking for Costs. In any suit for the enforcement of any right or remedy
under this Indenture or in any suit against the Trustee for any action taken or omitted by it as
Trustee, a court in its discretion may require the filing by any party litigant (other than the
Trustee) in the suit of an undertaking to pay the costs of the suit in the manner and to the extent
provided in the TIA, and the court in its discretion may assess reasonable costs, including
reasonable attorneys’ fees and expenses, against any party litigant in the suit, having due regard
to the merits and good faith of the claims or defenses made by the party litigant. This does not
apply to a suit by the Trustee, a suit by a Holder pursuant to or a suit by Holders of more than
10% in aggregate principal amount of the Notes at the time outstanding.

     Section 6.13. Waiver of Stay, Extension or Usury 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 or extension law or any usury or
other law wherever enacted, now or at any time hereafter in force, which would prohibit or forgive
the Company from paying all or any portion of the principal amount, Change of Control Purchase
Price or any accrued cash interest in respect of Notes, or any interest on such amounts, as
contemplated herein, 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.

 

 

ARTICLE 7

Trustee

     Section 7.01. Duties and Responsibilities of the Trustee; During Default; Prior to Default.
The Trustee, prior to the occurrence of an Event of Default hereunder and after the curing or
waiving of all such 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
hereunder 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 or her own affairs.

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

     (a) prior to the occurrence of an Event of Default hereunder and after the curing or waiving
of all such 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 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 against the Trustee; and

     (ii) in the absence of bad faith 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 statements, certificates or opinions furnished to the Trustee
and conforming to the requirements of this Indenture; but in the case of any such
statements, certificates or opinions which by any provision hereof are specifically required
to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to
determine whether or not they conform to the requirements of this Indenture;

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

     (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 direction of the Holders pursuant to 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.

     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.

 

 

     Section 7.02. Certain Rights of the Trustee. Subject to Section 7.01:

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

     (b) any request, direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by 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 selection and any advice or Opinion of Counsel
shall be full and complete authorization and protection in respect of any action taken, suffered or
omitted to be taken 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 trusts or powers vested in
it by this Indenture with the request, order or direction of any of the Holders pursuant to the
provisions of this Indenture, unless such Holders shall have offered to the Trustee reasonable
security or indemnity satisfactory to it against the costs, expenses and liabilities which might be
incurred therein or thereby;

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

     (f) prior to the occurrence of an Event of Default hereunder and after the curing or waiving
of all such Events of Default, the Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, consent, order, approval, appraisal, bond, debenture, note, coupon, security, or
other paper or document unless requested in writing to do so by the Holders of not less than a
majority in aggregate principal amount of the Notes then outstanding; provided that, if the payment
within a reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred
by it in the making of such investigation is, in the opinion of the Trustee, not reasonably assured
to the Trustee by the security afforded to it by the terms of this Indenture, the Trustee may
require reasonable indemnity against such expenses or liabilities as a condition to proceeding; the
reasonable expenses of every such investigation shall be paid by the Company or, if paid by the
Trustee or any predecessor trustee, shall be repaid by the Company upon demand;

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

     (h) the Trustee shall not be deemed to have notice of any Default or Event of Default unless a
Responsible Officer of the Trustee has received written notice at the Corporate Trust

 

 

Office of the
Trustee of any event which is in fact such a default, and such notice references the Notes and this
Indenture; and

     (i) the rights, privileges, protections, immunities and benefits given to the Trustee,
including 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 7.03. Trustee Not Responsible for Recitals, Dispositions of Notes or Application of
Proceeds Thereof. The recitals contained herein and in the Notes, except the Trustee’s
certificates of authentication, shall be taken as the statements of the Company, and the
Trustee assumes no responsibility for the correctness of the same. The Trustee makes no
representation as to the validity or sufficiency of this Indenture or of the Notes. The Trustee
shall not be accountable for the use or application by the Company of any of the Notes or of the
proceeds thereof.

     Section 7.04. Trustee and Agents May Hold Notes, Collections, etc. The Trustee or any agent
of the Company or the Trustee, in its individual or any other capacity, may become the owner or
pledgee of Notes with the same rights it would have if it were not the Trustee or such agent and,
subject to Sections 7.01 and 7.02 if operative, may otherwise deal with the Company and receive,
collect, hold and retain collections from the Company with the same rights it would have if it were
not the Trustee or such agent.

     Section 7.05. Moneys and Shares of Common Stock Held by Trustee. All money and shares of
Common Stock received by the Trustee shall, until used or applied as herein provided, be held in
trust for the purposes for which they were received, but need not be segregated from other funds
except to the extent required by mandatory provisions of law. Neither the Trustee nor any agent of
the Company or the Trustee shall be under any liability for interest on any moneys or shares of
Common Stock received by it hereunder.

     Section 7.06. Compensation and Indemnification of Trustee and Its Prior Claim. The Company
covenants and agrees to pay to the Trustee from time to time, and the Trustee shall be entitled to,
such compensation (which shall not be limited by any provision of law in regard to the compensation
of a trustee of an express trust) to be agreed to in writing by the Trustee and the Company, and
the Company covenants and agrees to pay or reimburse the Trustee and each predecessor Trustee upon
its request for all expenses, disbursements and advances incurred or made by or on behalf of it in
accordance with any of the provisions of this Indenture (including (i) the reasonable compensation
and the expenses and disbursements of its counsel and of all agents and other persons not regularly
in its employ and (ii) interest at the prime rate on any disbursements and advances made by the
Trustee and not paid by the Company within five (5) days after receipt of an invoice for such
disbursement or advance) except any such expense, disbursement or advance as shall be determined by
a court of competent jurisdiction to have been caused by its own gross negligence or bad faith.
The Company also covenants to fully indemnify each of the Trustee, each predecessor Trustee, any
Authenticating Agent and any officer, director, employee or agent of the Trustee, each such
predecessor Trustee or any such Authenticating Agent for, and to hold it harmless against, any and
all loss, liability, claim, damage or expense (including legal fees and expenses) incurred without
gross negligence or

 

 

willful misconduct on its part, arising out of or in connection with the
acceptance or administration of this Indenture or the trusts hereunder and its duties hereunder,
including the Trustee’s role as Paying Agent, Conversion Agent or Note Registrar, and including the
costs and expenses of defending itself against or investigating any claim of liability in the
premises. The obligations of the Company under this Section 7.06 to compensate and indemnify the
Trustee, each predecessor Trustee, any Authenticating Agent and any officer, director, employee or
agent of the Trustee, each such predecessor Trustee or any such Authenticating Agent and to pay or
reimburse the Trustee and each predecessor Trustee for expenses, disbursements and advances shall
constitute additional indebtedness hereunder and shall survive the satisfaction and discharge of
this Indenture. Such additional indebtedness shall be a senior claim to that of the
Notes upon all property and funds held or collected by the Trustee as such, except funds held
in trust for the benefit of the Holders of particular Notes, and the Notes are hereby effectively
subordinated to such senior claim to such extent. The provisions of this Section 7.06 shall
survive the termination of this Indenture and the resignation or removal of the Trustee.

     Section 7.07. Right of Trustee to Rely on Officers’ Certificate, etc. Subject to Sections
7.01 and 7.02, whenever in the administration of the trusts of this Indenture the Trustee shall
deem it necessary or desirable that a matter be proved or established prior to taking or suffering
or omitting any action hereunder, such matter (unless other evidence in respect thereof be herein
specifically prescribed) may, in the absence of negligence or bad faith on the part of the Trustee,
be deemed to be conclusively proved and established by an Officers’ Certificate delivered to the
Trustee, and such certificate, in the absence of negligence or bad faith on the part of the
Trustee, shall be full warrant to the Trustee for any action taken, suffered or omitted by it under
the provisions of this Indenture upon the faith thereof.

     Section 7.08. Conflicting Interests. If the Trustee has or shall acquire a conflicting
interest within the meaning of the TIA, 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 TIA.

     Section 7.09. Persons Eligible for Appointment as Trustee. The Trustee shall at all times be
a corporation or banking association having a combined capital and surplus of at least $50,000,000.
If such corporation or banking association publishes reports of condition at least annually,
pursuant to law or to the requirements of the aforesaid supervising or examining authority, then,
for the purposes of this Section 7.09, the combined capital and surplus of such corporation shall
be deemed to be its combined capital and surplus as set forth in its most recent report of
condition so published. In case at any time the Trustee shall cease to be eligible in accordance
with the provisions of this Section 7.09, the Trustee shall resign immediately in the manner and
with the effect specified in Section 7.10.

     Section 7.10. Resignation and Removal; Appointment of Successor Trustee. The Trustee, or any
trustee or trustees hereafter appointed, may at any time resign with respect to one or more or all
series of Notes by giving written notice of resignation to the Company and by mailing notice
thereof by first-class mail to the Holders of Notes at their last addresses as they shall appear on
the Note Register. Upon receiving such notice of resignation, the Company shall promptly appoint a
successor trustee or trustees by written instrument in duplicate, executed by authority of the
Board of Directors, one copy of which instrument shall be delivered to the resigning Trustee and
one copy to the successor trustee or trustees. If no successor trustee shall

 

 

have been so
appointed and have accepted appointment within thirty (30) days after the mailing of such notice of
resignation, the resigning trustee may petition, at the expense of the Company, any court of
competent jurisdiction for the appointment of a successor trustee, or any Holder who has been a
bona fide Holder of a Note for at least six (6) months may, subject to the provisions of, 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.

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

     (i) the Trustee shall fail to comply with the provisions of this Section 7.10 with
respect to any Notes after written request therefor by the Company or by any Holder who has
been a bona fide Holder of a Note for at least six (6) months;

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

     (iii) the Trustee shall become incapable of acting or shall be adjudged a bankrupt or
insolvent, or a receiver or liquidator 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; or

     (iv) the Company shall determine that the Trustee has failed to perform its obligations
under this Indenture in any material respect;

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 provisions of Section 6.12, any Holder who has been a bona fide Holder of a Note for
at least six (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. Such court may thereupon, after such notice, if any, as it may deem proper and prescribe,
remove the Trustee and appoint a successor trustee. If no successor trustee shall have been
appointed and have accepted appointment within thirty (30) days after a notice of removal has been
given, the removed trustee may petition a court of competent jurisdiction for the appointment of a
successor trustee.

     (b) The Holders of a majority in aggregate principal amount of the Notes at the time
outstanding may at any time remove the Trustee and appoint a successor trustee by delivering to the
Trustee so removed, to the successor trustee so appointed and to the Company the evidence provided
for in of the action in that regard taken by the Holders.

     (c) Any resignation or removal of the Trustee and any appointment of a successor trustee
pursuant to any of the provisions of this Section 7.10 shall become effective upon acceptance of
appointment by the successor trustee as provided in Section 7.11.

 

 

     Section 7.11. Acceptance of Appointment by Successor Trustee. Any successor trustee
appointed as provided in Section 7.10 shall execute and deliver to the Company and to the
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 rights, powers,
duties and obligations of its predecessor hereunder, with like effect as if originally named as
trustee hereunder; but, nevertheless, on the written request of the Company or of the successor
trustee, upon payment of its charges then unpaid, the trustee ceasing to act shall pay over to the
successor trustee all moneys at the time held by it hereunder and shall execute and deliver an
instrument transferring to such successor trustee all such rights, powers, duties and obligations.
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 prior claim upon
all property or funds held or collected by such trustee to secure any amounts then due it pursuant
to the provisions of Section 7.06.

     No successor trustee shall accept appointment as provided in this Section 7.11 unless at the
time of such acceptance such successor trustee shall be qualified under the provisions of Section
7.08 and eligible under the provisions of Section 7.09.

     Upon acceptance of appointment by any successor trustee as provided in this Section 7.11, the
Company shall mail notice thereof by first-class mail to the Holders of Notes at their last
addresses as they shall appear in the Note Register. If the acceptance of appointment is
substantially contemporaneous with the resignation, then the notice called for by the preceding
sentence may be combined with the notice called for by Section 7.10. If the Company fails to mail
such notice within ten (10) 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 7.12. Merger, Conversion, Consolidation or Succession to Business of Trustee. Any
corporation or banking association into which the Trustee may be merged or converted or with which
it may be consolidated, or any corporation or banking association resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any corporation or banking
association succeeding to all or substantially all of the corporate trust business of the Trustee,
shall be the successor of the Trustee hereunder; provided that such corporation or banking
association shall be qualified and eligible under the provisions of Section 7.08 and Section 7.09,
without the execution or filing of any paper or any further act on the part of any of the parties
hereto, anything herein to the contrary notwithstanding. In case at the time such successor to the
Trustee shall succeed to the trusts created by this Indenture and any of the Notes 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 and deliver such Notes so
authenticated; and, in case at that time any of the Notes shall not have been authenticated, any
successor to the Trustee or any Authenticating Agent appointed by such successor Trustee may
authenticate such Notes either in the name of any predecessor hereunder or in the name of the
successor Trustee; and in all such cases such certificate shall have the full force and effect that
this Indenture provides for the certificate of authentication of the Trustee; provided that the
right to adopt the certificate of authentication of any predecessor Trustee or to

 

 

authenticate Notes in the name of any predecessor Trustee shall apply only to its successor or successors by
merger, conversion or consolidation.

     Section 7.13. Preferential Collection of Claims Against the Company. If and when the
Trustee shall be or become a creditor of the Company (or any other obligor upon the Notes), the
Trustee shall be subject to the provisions of the TIA regarding the collection of the claims
against the Company (or any such other obligor).

     Section 7.14. Reports by the Trustee. Within sixty (60) days after May 15 of each year
commencing with the year 2011, the Trustee shall transmit to Holders and other persons such
reports dated as of May 15 of the year in which such reports are made concerning the Trustee
and its actions under this Indenture as may be required pursuant to the TIA.

     A copy of each such report shall, at the time of such transmission to the Holders, be
furnished to the Company and be filed by the Trustee with each stock exchange upon which the Notes
are listed and also with the SEC. The Company agrees to notify the Trustee when and as the Notes
become admitted to trading on any national securities exchange or become delisted therefrom.

     Section 7.15. Trustee to Give Notice of Default, But May Withhold in Certain Circumstances.
The Trustee shall transmit to the Holders, as the names and addresses of such Holders appear on the
Note Register, notice by mail of all Defaults of which it has actual knowledge of, such notice to
be transmitted within ninety (90) days after the Trustee receives written notice thereof, unless
such Defaults shall have been cured before the giving of such notice; provided that, except in the
case of Default in the payment of the principal of or interest on any of the Notes when due or in
the payment of any repurchase obligation, the Trustee shall be protected in withholding such notice
if and so long as the board of directors, the executive committee, or a trust committee of
directors or trustees and/or Responsible Officers of the Trustee in good faith determines that the
withholding of such notice is in the best interests of the Holders.

ARTICLE 8

Discharge of Indenture

     Section 8.01. Discharge of Indenture. When all outstanding Notes will become due and payable
within one year of the Maturity Date and the Company has deposited with the Trustee cash sufficient
to pay and discharge all outstanding Notes on the date of the Maturity Date, then the Company may
discharge its obligations under this Indenture while Notes remain outstanding; provided that
provisions of Section 2.04, Section 2.05, Section 2.06, Section 2.07, Section 2.08, Section 4.01,
Section 4.05, Section 7.06, Article 10 and this Article 8 shall survive until the Notes have been
paid in full. The Trustee shall join in the execution of a document prepared by the Company
acknowledging satisfaction and discharge of this Indenture on demand of the Company accompanied by
an Officers’ Certificate and Opinion of Counsel as required by and at the cost and expense of the
Company; 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 Notes. The Company will remain obligated to issue shares of its Common Stock upon
conversion of the Notes until such maturity as described under Article 10.

     Section 8.02. Paying Agent to Repay Monies Held. Upon the discharge of this Indenture, all
monies then held by any Paying Agent of the Notes (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 8.03. Return of Unclaimed Monies. Subject to the requirements of applicable law, any
monies deposited with or paid to the Trustee or the Paying Agent for payment of the principal of or
interest on Notes and not applied but remaining unclaimed by the holders of Notes for two (2) years
after the date upon which the principal of or interest on such Notes, as the case may be, shall
have become due and payable, shall be repaid to the Company by the Trustee or the Paying Agent on
written demand and all liability of the Trustee or the Paying Agent shall thereupon cease with
respect to such monies; and the Holder of any of the Notes 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.

ARTICLE 9

Supplemental Indentures

     Section 9.01. Without Consent of Holders. The Company and the Trustee may, from time to time
and at any time, enter into an indenture or indentures supplemental hereto without the consent of
any Holder for one or more of the following purposes:

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

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

     (c) providing for the assumption of the Company’s obligations to the Holders in the case of a
merger, consolidation, conveyance, transfer or lease in accordance with Section 5.01;

     (d) adjusting the Conversion Rate; provided that the adjustment will not adversely affect the
interests of Holders in any material respect;

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

     (f) making any changes or modifications to this Indenture necessary in connection with the
registration of the Notes under the Securities Act as contemplated by the Registration Rights
Agreement; provided that this action does not adversely affect the interests of the Holders in any
material respect;

     (g) curing any ambiguity or correcting or supplementing any defective provision contained in
this Indenture; provided that such modification or amendment does not adversely affect the
interests of the Holders in any material respect;

 

 

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

     (i) complying with the requirements regarding merger or transfer of assets; or

     (j) providing for uncertificated Notes in addition to Certificated Notes so long as such
uncertificated Notes are in registered form for purpose of the Internal Revenue Code of 1986.

     Notwithstanding any other provision of the Indenture or the Notes, the Registration Rights
Agreement and the obligation to pay Additional Interest thereunder may only be amended, modified or
waived in accordance with the provisions thereof.

     Section 9.02. With Consent of Holders. With the written consent of the Holders of at least a
majority in aggregate principal amount of the Notes at the time outstanding, the Company and the
Trustee may, from time to time and at any time, enter into an indenture or indentures supplemental
hereto for the purpose of adding any provisions to or change in any manner or eliminating any of
the provisions of this Indenture or any supplemental indenture or of modifying in any manner the
rights of the Holders of the Notes. However, without the consent of each Holder so affected, a
supplemental indenture may not:

     (a) change the maturity of the principal of or any installment of interest on any Note;

     (b) reduce the principal amount of or interest on any Note;

     (c) change the currency of payment of such Note or interest thereon;

     (d) impair the right to institute suit for the enforcement of any payment on or with respect
to any Note;

     (e) modify the Company’s obligations to maintain an office or agency in New York City;

     (f) except as otherwise permitted or contemplated by provisions concerning corporate
reorganizations, adversely affect the repurchase option of Holders upon a Change of Control or the
conversion rights of Holders;

     (g) modify in a manner that adversely affects the interest of the Holders; or

     (h) reduce the percentage in aggregate principal amount of Notes outstanding necessary to
modify or amend this Indenture or to waive any past default.

     It shall not be necessary for the consent of the Holders to approve the particular form of any
proposed supplemental indenture, but it shall be sufficient if such consent approves the substance
thereof.

     After a supplemental indenture under this Article 9 becomes effective, the Company shall mail
to each Holder a notice briefly describing the supplemental indenture.

 

 

     Section 9.03. Compliance with Trust Indenture Act. Every supplemental indenture executed
pursuant to this Article shall comply with the TIA; provided that this shall not require such
supplemental indenture or the Trustee to be qualified under the TIA prior to the time such
qualification is in fact required under the terms of the TIA or the Indenture has been qualified
under the TIA, nor shall it constitute any admission or acknowledgment by any party to such
supplemental indenture that any such qualification is required prior to the time such qualification
is in fact required under the terms of the TIA or the Indenture has been qualified under the TIA.

     Section 9.04. Revocation and Effect of Consents, Waivers and Actions. Until a supplemental
indenture, waiver or other action by Holders becomes effective, a consent thereto by a Holder of a
Note hereunder is a continuing consent by the Holder and every subsequent Holder of that Note or
portion of the Note that evidences the same obligation as the consenting Holder’s Note, even if
notation of the consent, waiver or action is not made on the Note. However, any such Holder or
subsequent Holder may revoke the consent, waiver or action as to such Holder’s Note or portion of
the Note if the Trustee receives the notice of revocation before the date the supplemental
indenture, waiver or action becomes effective. After a supplemental indenture, waiver or action
becomes effective, it shall bind every Holder.

     Section 9.05. Notation on or Exchange of Notes. Notes authenticated and delivered after the
execution of any supplemental indenture pursuant to this Article 9 may, and shall if required by
the Trustee, 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 Notes 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 or an Authenticating Agent
in exchange for outstanding Notes.

     Section 9.06. Trustee to Sign Supplemental Indentures. The Trustee shall sign any
supplemental indenture authorized pursuant to this Article 9 if the amendment contained therein
does not adversely affect the rights, duties, liabilities or immunities of the Trustee. If it
does, the Trustee may, but need not, sign such supplemental indenture. In signing such
supplemental indenture the Trustee shall be provided with, and shall be fully protected in relying
upon in good faith, an Officers’ Certificate and an Opinion of Counsel stating that such amendment
is authorized or permitted by this Indenture.

     Section 9.07. Effect of Supplemental Indentures. Upon the execution of any supplemental
indenture under this Article 9, this Indenture shall be modified in accordance therewith, and such
supplemental indenture shall form a part of this Indenture for all purposes; and every Holder of
Notes theretofore or thereafter authenticated and delivered hereunder shall be bound thereby.

ARTICLE 10

Conversion

     Section 10.01. Conversion Right and Conversion Rate. Subject to and upon compliance with the
provisions of this Article, at the option of the Holder thereof, any Note or any portion of the
principal amount thereof which is $1,000 or an integral multiple of $1,000 may be converted

 

 

at the
principal amount thereof, or of such portion thereof, into duly authorized, fully paid and
nonassessable shares of Common Stock, at an initial conversion rate of 62.5 shares of Common Stock
(subject to adjustment as provided in this Article 10, the “Conversion Rate”) per $1,000 principal
amount of Notes, in effect at the time of conversion (the “Conversion Obligation”). Such
conversion right shall expire at the close of business on the Business Day immediately preceding
the Maturity Date of the Notes, except that in the case of a Change of Control for which the Holder
exercises its repurchase right with respect to a Note or portion thereof, such
conversion right in respect of the Note or portion thereof shall expire at the close of
business on the Business Day immediately preceding the Change of Control Purchase Date.

     Section 10.02. Exercise of Conversion Right. Subject to Section 10.09, to exercise the
conversion right, the Holder of any Note to be converted shall (a) in the case of a Certificated
Note, (i) surrender such Note duly endorsed or assigned to the Company or in blank, at the office
of any Conversion Agent, accompanied by a duly signed conversion notice in the form attached to the
Note to the Company stating that the Holder elects to convert such Note or, if less than the entire
principal amount thereof is to be converted, the portion thereof to be converted and (ii) if
required pursuant to the immediately succeeding paragraph, pay funds equal to the interest payable
on the next Interest Payment Date to which such holder is not entitled and (b) in the case of a
Global Note, comply with the relevant procedures of the Depositary in effect at that time and, if
required pursuant to the immediately succeeding paragraph, pay funds equal to the interest payable
on the next Interest Payment Date to which such holder is not entitled. A Note shall be deemed to
have been converted immediately prior to the close of business on the date (the “Conversion Date”)
that the Holder has complied with the requirements set forth in this paragraph, and at such time
the rights of the Holders of such Notes as Holders shall cease, and the Person or Persons entitled
to receive the shares of Common Stock issuable upon conversion shall be treated as the record
holder or holders of such shares of Common Stock at such time solely for the purpose of receiving
any dividend, distribution, share split or combination, tender or exchange offer or any other event
that would lead to an adjustment of the Conversion Rate pursuant to Section 10.05. On the third
Business Day immediately following the Conversion Date, the Company shall cause to be issued and
delivered to the converting Holder a certificate or certificates for the full number of shares of
Common Stock issuable upon conversion, together with payment in lieu of any fraction of a share as
provided herein.

     Upon conversion, a Holder shall not receive any separate cash payment for accrued and unpaid
interest, if any, except as set forth below. The Company’s settlement of its Conversion Obligation
shall be deemed to satisfy in full its obligation to pay the principal amount of the Note and
accrued and unpaid interest, if any, to, but not including, the Conversion Date. As a result,
accrued and unpaid interest, if any, to, but not including, the Conversion Date shall be deemed to
be paid in full rather than cancelled, extinguished or forfeited. Notwithstanding the foregoing,
if Notes are converted after the close of business on a Regular Record Date, Holders of such Notes
as of the close of business on such Regular Record Date will receive the full amount of interest
payable on such Notes on the corresponding Interest Payment Date notwithstanding the conversion.
Notes surrendered for conversion during the period from the close of business on any Regular Record
Date to the open of business on the immediately following Interest Payment Date must be accompanied
by payment in New York Clearing House funds or other funds acceptable to the Company of an amount
equal to the amount of interest payable on the Notes so converted; provided that no such payment
shall be required (1) for

 

 

conversions following the Regular Record Date immediately preceding the
Maturity Date; (2) if the Company has specified a Redemption Date that is after a Regular Record
Date and on or prior to the corresponding Interest Payment Date; (3) if the Company has specified a
Change of Change Repurchase Date that is after a Regular Record Date and on or prior to the
Business Day immediately following the corresponding Interest Payment Date; or (4) to the extent of
any overdue interest, if any overdue interest exists at the time of conversion with respect to such
Note.

     In the case of any Note, other than a Global note, which is converted in part only, upon such
conversion the Company shall execute and the Trustee or an Authenticating Agent shall authenticate
and deliver to the Holder thereof, at the expense of the Company, a new Note or Notes of authorized
denominations in aggregate principal amount equal to the unconverted portion of the principal
amount of such Notes.

     If shares of Common Stock to be issued upon conversion of a Note that is a Restricted Security
(a “Restricted Note”), or securities to be issued upon conversion of a Restricted Note in part
only, are to be registered in a name other than that of the Holder of such Restricted Note, such
Holder must deliver to the Conversion Agent a transfer certificate in the form of Exhibit C
hereto, dated the date of surrender of such Restricted Note and signed by such Holder, as to
compliance with the restrictions on transfer applicable to such Restricted Note. Neither the
Trustee nor any Conversion Agent, Note Registrar or transfer agent shall be required to register in
a name other than that of the Holder of Notes or shares of Common Stock issued upon conversion of
any such Restricted Note not so accompanied by a properly completed certificate.

     Section 10.03. Fractions of Shares. No fractional shares of Common Stock shall be issued
upon conversion of any Note or Notes. If more than one Note shall be surrendered for conversion at
one time by the same Holder, the number of full shares that shall be issued upon conversion thereof
shall be computed on the basis of the aggregate principal amount of the Notes (or specified
portions thereof) so surrendered. Instead of any fractional share of Common Stock which would
otherwise be issued upon conversion of any Note or Notes (or specified portions thereof), the
Company shall pay cash in lieu of such fractional shares based on the Closing Price of the Common
Stock on the relevant Conversion Date.

     Section 10.04. Increased Conversion Rate Applicable to Certain Notes Surrendered in
Connection with a Change of Control. (a) If a Change of Control occurs and a Holder elects to
convert its Notes in connection with such Change of Control, the Company shall, under the
circumstances described below, increase the Conversion Rate for the Notes so surrendered for
conversion by a number of additional shares of Common Stock (the “Additional Shares”), as described
below. A conversion of Notes shall be deemed for these purposes to be “in connection with” such
Change of Control if the relevant conversion notice is received by the Conversion Agent from, and
including, the Effective Date of the Change of Control up to, and including, the Business Day
immediately prior to the related Change of Control Repurchase Date.

     (b) Upon surrender of Notes for conversion in connection with a Change of Control, the Company
shall deliver shares of Common Stock, including the Additional Shares, in accordance with Section
10.02. The Company shall notify the Holders of Notes of the Effective

 

 

Date of any Change of
Control and issue a press release announcing such Effective Date no later than five Business Days
after such Effective Date.

     (c) The number of Additional Shares, if any, by which the Conversion Rate shall be increased
shall be determined by reference to the table below, based on the date on which the Change of
Control occurs or becomes effective (the “Effective Date”) and the price (the “Stock Price”) paid
(or deemed to be paid) per share of the Common Stock in the Change of Control. If the holders of
the Common Stock receive only cash in a Change of Control described in clause (ii) of the
definition of Change of Control, the Stock Price shall be the cash amount paid per
share. Otherwise, the Stock Price shall be the average of the Closing Prices of the Common
Stock over the five Trading Day period ending on, and including, the Trading Day immediately
preceding the Effective Date of the Change of Control. The Company shall make appropriate
adjustments to the Stock Price, in its good faith determination, to account for any adjustment to
the Conversion Rate that becomes effective, or any event requiring an adjustment to the Conversion
Rate where the Record Date of the event occurs, during such five consecutive Trading Day period.

     (d) The Stock Prices set forth in the column headings of the table below shall be adjusted as
of any date on which the Conversion Rate of the Notes 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
giving rise to the Stock Price adjustment and the denominator of which is the Conversion Rate as so
adjusted. The number of Additional Shares set forth in the table below shall be adjusted in the
same manner and at the same time as the Conversion Rate as set forth in Section 10.05.

     (e) The following table sets forth the number of Additional Shares to be received per $1,000
principal amount of Notes pursuant to this Section 10.04 for each Stock Price and Effective Date
set forth below:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock Price
	Effective Date	 	$13.74	 	$16.00	 	$18.00	 	$20.00	 	$22.00	 	$24.00	 	$30.00	 	$35.00	 	$40.00	 	$50.00	 	$60.00
	 
	December 30, 2010
	 	 	10.2802	 	 	 	9.9900	 	 	 	9.7000	 	 	 	8.1350	 	 	 	6.9409	 	 	 	6.0000	 	 	 	4.1500	 	 	 	3.1543	 	 	 	2.4875	 	 	 	1.6360	 	 	 	1.1200	 
	December 30, 2011
	 	 	10.2802	 	 	 	9.8263	 	 	 	8.8222	 	 	 	7.3050	 	 	 	6.1636	 	 	 	5.2833	 	 	 	3.5567	 	 	 	2.7000	 	 	 	2.1200	 	 	 	1.3860	 	 	 	0.9483	 
	December 30, 2012
	 	 	10.2802	 	 	 	9.6625	 	 	 	7.6389	 	 	 	6.1950	 	 	 	5.1318	 	 	 	4.3250	 	 	 	2.8200	 	 	 	2.1114	 	 	 	1.6475	 	 	 	1.0720	 	 	 	0.7317	 
	December 30, 2013
	 	 	10.2802	 	 	 	8.5438	 	 	 	6.5056	 	 	 	5.0900	 	 	 	4.0864	 	 	 	3.3542	 	 	 	2.0767	 	 	 	1.5229	 	 	 	1.1800	 	 	 	0.7680	 	 	 	0.5283	 
	December 30, 2014
	 	 	10.2802	 	 	 	7.2813	 	 	 	5.0944	 	 	 	3.6500	 	 	 	2.6909	 	 	 	2.0500	 	 	 	1.0933	 	 	 	0.7714	 	 	 	0.5950	 	 	 	0.3980	 	 	 	0.2783	 
	December 30, 2015
	 	 	10.2802	 	 	 	6.4188	 	 	 	3.7222	 	 	 	1.8050	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 
	December 30, 2016
	 	 	10.2802	 	 	 	5.8625	 	 	 	3.2111	 	 	 	1.5000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 
	December 30, 2017
	 	 	10.2802	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 
	 

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

     (i) if the Stock Price is between two Stock Prices in the table above or the Effective
Date is between two Effective Dates in the table, the number of Additional Shares shall be
determined by a straight-line interpolation between the number of Additional Shares set
forth for the higher and lower Stock Prices and the earlier and later Effective Dates, as
applicable, based on a 365-day year;

 

 

     (ii) if the Stock Price is greater than $60.00 per share (subject to adjustment in the
same manner as the Stock Prices set forth in the column headings of the table above pursuant
to subsection (d) above), no Additional Shares shall be added to the Conversion Rate; and

     (iii) if the Stock Price is less than $13.74 per share (subject to adjustment in the
same manner as the Stock Prices set forth in the column headings of the table above pursuant
to subsection (d) above), no Additional Shares shall be added to the Conversion Rate.

Notwithstanding the foregoing, in no event shall the total number of shares of Common Stock
issuable upon conversion exceed 72.7802 per $1,000 principal amount of Notes, subject to adjustment
in the same manner as the Conversion Rate pursuant to Section 10.05.

     (f) Nothing in this Section 10.04 shall prevent an adjustment to the Conversion Rate pursuant
to Section 10.05 in respect of a Change of Control.

     Section 10.05. 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 shall not
make any adjustments to the Conversion Rate if Holders of the Notes participate (other than in the
case of a share split or share combination), at the same time and upon the same terms as holders of
the Common Stock and solely as a result of holding the Notes, in any of the transactions described
in this Section 10.05, without having to convert their Notes, as if they held a number of shares of
Common Stock equal to the Conversion Rate, multiplied by the principal amount (expressed in
thousands) of Notes held by such Holder.

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

	 	 	 	 	 	 	 	 	 	 	 

	 

	 	 	 	 	 	 	 	OS'	 	 
	CR'

	 	=
	 	
CR0
	 	x
	 	
 

	 	 
	 

	 	 	 	 	 	 	 	
OS0	 	 

where,

	 	 	 	 	 

	CR0

	 	=
	 	the Conversion Rate in effect immediately prior to
the close of business on the Record Date of such
dividend or distribution, or immediately prior to
the open of business on the effective date of such
share split or share combination, as applicable;
	 
	 	 	 	 
	CR'

	 	=
	 	the Conversion Rate in effect immediately after
the close of business on such Record Date or
immediately after the open of business on such
effective date, as applicable;
	 
	 	 	 	 
	OS0

	 	=
	 	the number of shares of Common Stock outstanding
immediately prior to the close of business on such
Record Date or immediately prior the open of
business on such effective date, as applicable;
and

 

 

	 	 	 	 	 

	OS'

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

Any adjustment made under this Section 10.05(a) shall become effective immediately after the close
of business on the Record Date for such dividend or distribution, or immediately after the open of
business on the effective date for such share split or share combination, as applicable. If any
dividend or distribution of the type described in this Section 10.05(a) is declared but not so paid
or made, the Conversion Rate shall be immediately readjusted, effective as of the date the
Company determines not to pay such dividend or distribution, to the Conversion Rate that would then
be in effect if such dividend or distribution had not been declared.

     (b) If the Company issues to all or substantially all holders of its Common Stock any rights,
options or warrants entitling them, for a period of not more than 45 calendar days after the
announcement date of such issuance, to subscribe for or purchase shares of the Common Stock at a
price per share that is less than the average of the Closing Prices of the Common Stock for the 10
consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the
date of announcement of such issuance, the Conversion Rate shall be increased based on the
following formula:

	 	 	 	 	 	 	 	 	 	 	 

	 

	 	 	 	 	 	 	 	OS0 + X	 	 
	CR'

	 	=
	 	CR0
	 	x
	 	 

	 	 
	 

	 	 	 	 	 	 	 	OS0 + Y	 	 

where,

	 	 	 	 	 

	CR0

	 	=
	 	the Conversion Rate in effect immediately prior to
the close of business on the Record Date for such
issuance;
	 
	 	 	 	 
	CR'

	 	=
	 	the Conversion Rate in effect immediately after
the close of business on such Record Date;
	 
	 	 	 	 
	OS0

	 	=
	 	the number of shares of Common Stock outstanding
immediately prior to the close of business on such
Record Date;
	 
	 	 	 	 
	X

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

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

Any increase made under this Section 10.05(b) shall be made successively whenever any such rights,
options or warrants are issued and shall become effective immediately after the close of business
on the Record Date for such issuance. To the extent that shares of the Common Stock are not
delivered after the expiration of such rights, options or warrants, the Conversion Rate shall be
decreased to the Conversion Rate that would then be in effect had the increase with

 

 

respect to the
issuance of such rights, options or warrants been made on the basis of delivery of only the number
of shares of Common Stock actually delivered. If such rights, options or warrants are not so
issued, the Conversion Rate shall be decreased to the Conversion Rate that would then be in effect
if such Record Date for such issuance had not occurred.

     For purposes of this Section 10.05(b), in determining whether any rights, options or warrants
entitle the holders to subscribe for or purchase shares of the Common Stock at less than such
average of the Closing Prices of the Common Stock for the 10 consecutive Trading Day
period ending on, and including, the Trading Day immediately preceding the date of
announcement for such issuance, and in determining the aggregate offering price of such shares of
Common Stock, there shall be taken into account any consideration received by the Company for such
rights, options or warrants and any amount payable on exercise or conversion thereof, the value of
such consideration, if other than cash, to be determined by the Company.

     (c) If the Company distributes shares of its Capital Stock, evidences of its indebtedness,
other assets or property or rights, options or warrants to acquire its Capital Stock or other
securities, to all or substantially all holders of the Common Stock, excluding (i) dividends,
distributions or issuances as to which an adjustment was effected pursuant to Section 10.05(a) or
Section 10.05(b), (ii) dividends or distributions paid exclusively in cash as to which an
adjustment was effected pursuant to Section 10.05(d) and (iii) Spin-Offs as to which the provisions
set forth below in this Section 10.05(c) shall apply (any of such shares of Capital Stock,
evidences of indebtedness, other assets or property or rights, options or warrants to acquire
Capital Stock or other securities of the Company, the “Distributed Property”), then the Conversion
Rate shall be increased based on the following formula:

	 	 	 	 	 	 	 	 	 	 	 

	 

	 	 	 	 	 	 	 	SP0	 	 
	CR'

	 	=
	 	CR0
	 	x
	 	 

	 	 
	 

	 	 	 	 	 	 	 	SP0 – FMV	 	 

where,

	 	 	 	 	 

	CR0

	 	=
	 	the Conversion Rate in effect immediately prior to
the close of business on the Record Date for such
distribution;
	 
	 	 	 	 
	CR'

	 	=
	 	the Conversion Rate in effect immediately after
the close of business on such Record Date;
	 
	 	 	 	 
	SP0

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

	 	=
	 	the fair market value (as determined by the
Company) of the Distributed Property with respect
to each outstanding share of the Common Stock on
the Ex-Dividend Date for such distribution.

Any increase made under the portion of this Section 10.05(c) above shall become effective
immediately after the close of business on the Record Date for such distribution. If such
distribution is not so paid or made, the Conversion Rate shall be decreased to the Conversion

 

 

Rate that would then be in effect if such dividend or distribution had not been declared. If the
Company determines the “FMV” (as defined above) of any distribution for purposes of this Section
10.05(c) by reference to the actual or when-issued trading market for any securities, it shall in
doing so consider the prices in such market over the same period used in computing the Closing
Prices of the Common Stock over the 10 consecutive Trading Day period ending on the Trading Day
immediately preceding the Ex-Dividend Date for such distribution.

     With respect to an adjustment pursuant to this Section 10.05(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 of the
Company, that are, or, when issued, will be, listed or admitted for trading on a U.S. national
securities exchange (a “Spin-Off”), the Conversion Rate shall be increased based on the following
formula:

	 	 	 	 	 	 	 	 	 	 	 

	 

	 	 	 	 	 	 	 	FMV0 + MP0	 	 
	CR'

	 	=
	 	CR0
	 	x
	 	 

	 	 
	 

	 	 	 	 	 	 	 	MP0	 	 

where,

	 	 	 	 	 

	CR0

	 	=
	 	the Conversion Rate in effect immediately prior to the end of the Valuation Period;
	 
	 	 	 	 
	CR'

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

	 	=
	 	the average of the Closing Prices of the Capital Stock or similar equity interest distributed to
holders of the Common Stock applicable to one share of the Common Stock over the first 10 consecutive
Trading Day period after, and including, the Ex-Dividend Date of the Spin-Off (the “Valuation
Period”); and
	 
	 	 	 	 
	MP0

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

The adjustment to the Conversion Rate under the preceding paragraph shall occur on the last Trading
Day of the Valuation Period; provided that in respect of any conversion during the Valuation
Period, references in the portion of this Section 10.05(c) related to Spin-Offs to 10 Trading Days
shall be deemed to be replaced with such lesser number of Trading Days as have elapsed between the
Ex-Dividend Date of such Spin-Off and the Conversion Date in determining the Conversion Rate.

     For purposes of this Section 10.05(c) (and subject in all respects to Section 10.14), rights,
options 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, including Common Stock (either
initially or under certain circumstances), which rights, options or warrants, until the occurrence
of a specified event or events (“Trigger Event”): (i) are deemed to be transferred with such shares
of the Common Stock; (ii) are not exercisable; and (iii) are also issued in respect of future
issuances of the Common Stock, shall be deemed not to have been distributed for purposes of this
Section 10.05(c) (and no adjustment to the Conversion Rate under this Section 10.05(c) will be
required) until the occurrence of the earliest Trigger Event, whereupon such rights, options or
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 10.05(c). If any such right,
option or warrant, including any such existing rights, options or warrants distributed prior to the
date of this Indenture, are subject to events, upon the occurrence of which such rights, options 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, options or warrants with such rights
(in which case the existing rights, options or warrants shall be deemed
to terminate and expire on such date without exercise by any of the holders thereof). In
addition, in the event of any distribution (or deemed distribution) of rights, options or warrants,
or any Trigger Event or other event (of the type described in the immediately 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 10.05(c) was made, (1) in the case of any
such rights, options or warrants that shall all have been redeemed or purchased without exercise by
any holders thereof, upon such final redemption or purchase (x) the Conversion Rate shall be
readjusted as if such rights, options or warrants had not been issued and (y) the Conversion Rate
shall then again be readjusted to give effect to such distribution, deemed distribution or Trigger
Event, as the case may be, as though it were a cash distribution, equal to the per share redemption
or purchase price received by a holder or holders of Common Stock with respect to such rights,
options or warrants (assuming such holder had retained such rights, options or warrants), made to
all holders of Common Stock as of the date of such redemption or purchase, and (2) in the case of
such rights, options or warrants that shall have expired or been terminated without exercise by any
holders thereof, the Conversion Rate shall be readjusted as if such rights, options and warrants
had not been issued.

     For purposes of Section 10.05(a), Section 10.05(b) and this Section 10.05(c), any dividend or
distribution to which this Section 10.05(c) is applicable that also includes one or both of:

     (A) a dividend or distribution of shares of Common Stock to which Section 10.05(a) is
applicable (the “Clause A Distribution”); or

     (B) a dividend or distribution of rights, options or warrants to which Section 10.05(b) is
applicable (the “Clause B Distribution”),

then (1) such dividend or distribution, other than the Clause A Distribution and the Clause B
Distribution, shall be deemed to be a dividend or distribution to which this Section 10.05(c) is
applicable (the “Clause C Distribution”) and any Conversion Rate adjustment required by this
Section 10.05(c)) with respect to such Clause C Distribution shall then be made, and (2) the Clause
A Distribution and Clause B Distribution shall be deemed to immediately follow the Clause C
Distribution and any Conversion Rate adjustment required by Section 10.05(a) and Section 10.05(b)
with respect thereto shall then be made, except that, if determined by the Company (I) the “Record
Date” of the Clause A Distribution and the Clause B Distribution shall be deemed to be the Record
Date of the Clause C Distribution and (II) any shares of Common Stock included in the Clause A
Distribution or Clause B Distribution shall be deemed not to be “outstanding immediately prior to
the close of business on such Record Date or immediately after the open of business on such
effective date, as applicable” within the meaning of Section

 

 

10.05(a) or “outstanding immediately prior to the close of business on such Record Date” within the meaning of Section 10.05(b).

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

	 	 	 	 	 	 	 	 	 	 	 

	 

	 	 	 	 	 	 	 	SP0	 	 
	CR'

	 	=
	 	CR0
	 	x
	 	 

	 	 
	 

	 	 	 	 	 	 	 	SP0 – C	 	 

where,

	 	 	 	 	 

	CR0

	 	=
	 	the Conversion Rate in effect immediately prior to
the close of business on the Record Date for such
dividend or distribution;
	 
	 	 	 	 
	CR'

	 	=
	 	the Conversion Rate in effect immediately after
the close of business on the Record Date for such
dividend or distribution;
	 
	 	 	 	 
	SP0

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

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

Any increase pursuant to this Section 10.05(d) shall become effective immediately after the close
of business on the Record Date for such dividend or distribution. If such dividend or distribution
is not so paid, the Conversion Rate shall be decreased, effective as of the date the Company
determines not to make or pay such dividend or distribution, to the Conversion Rate that would then
be in effect if such dividend or distribution had not been declared.

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

	 	 	 	 	 	 	 	 	 	 	 

	 

	 	 	 	 	 	 	 	AC + (SP'xOS')	 	 
	CR'

	 	=
	 	CR0
	 	x
	 	
 

	 	 
	 

	 	 	 	 	 	 	 	
OS0 x SP'	 	 

where,

	 	 	 	 	 

	CR0

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

 

 

	 	 	 	 	 

	CR'

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

	 	=
	 	the aggregate value of all cash and any other
consideration (as determined by the Company) paid
or payable for shares of Common Stock 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 (prior to giving effect to
the purchase of all shares of Common Stock
accepted for purchase or exchange in such tender
offer or exchange offer);
	 
	 	 	 	 
	OS'

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

	 	=
	 	the average of the Closing Prices of the 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 10.05(e) shall occur at the close of
business on the 10th Trading Day immediately following, and including, the Trading Day next
succeeding the date such tender or exchange offer expires; provided that in respect of any
conversion within the 10 Trading Days immediately following, and including, the expiration date of
any tender or exchange offer, references in this Section 10.05(e) with respect to 10 Trading Days
shall be deemed replaced with such lesser number of Trading Days as have elapsed between the date
that such tender or exchange offer expires and the Conversion Date in determining the Conversion
Rate.

     (f) Except as stated herein, the Company shall not adjust the Conversion Rate for the issuance
of shares of its Common Stock or any securities convertible into or exchangeable for shares of its
Common Stock or the right to purchase shares of its Common Stock or such convertible or
exchangeable securities.

     (g) In addition to those adjustments required by clauses (a), (b), (c), (d) and (e) of this
Section 10.05, and to the extent permitted by applicable law and subject to the applicable rules of
The New York Stock Exchange, the Company from time to time may increase the Conversion Rate by any
amount for a period of at least 20 Business Days if the Company determines that such increase would
be in the Company’s best interest. In addition, the Company may (but is not required to) increase
the Conversion Rate to avoid or diminish any income tax to holders of Common Stock or rights to
purchase Common Stock in connection with a dividend or distribution of shares (or rights to acquire
shares) or similar event. Whenever the Conversion Rate is increased pursuant to either of the
preceding two sentences, the Company shall mail to the Holder of each Note at its last address
appearing on the Note Register 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.

     (h) Notwithstanding anything to the contrary in this Section 10.05, the Conversion Rate shall
not be adjusted:

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

     (ii) upon the issuance of any shares of Common Stock or options or rights to purchase
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 the Company’s Subsidiaries;

     (iii) upon the issuance of any shares of the Common Stock pursuant to any option,
warrant, right or exercisable, exchangeable or convertible security not described in clause
(ii) of this subsection and outstanding as of the date the Notes were first issued;

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

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

     (i) No adjustment in the Conversion Rate shall be required unless such adjustment would
require an increase or decrease of at least 1% in the Conversion Rate; provided, however, that any
adjustments which by reason of this subsection (i) are not required to be made shall be carried
forward and taken into account in any subsequent adjustment. All calculations under this Section
10.05 shall be made by the Company and shall be made to the nearest one hundredth of a cent or to
the nearest one hundredth of a share, as the case may be. No adjustment need be made for a change
in the par value or no par value of the Common Stock.

     (j) For purposes of this Section 10.05, 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.

     Section 10.06. Notice of Adjustments of Conversion Rate. Whenever the Conversion Rate is
adjusted as herein provided, the Company shall promptly file with the Trustee and any Conversion
Agent other than the Trustee an Officers’ Certificate setting forth the adjusted Conversion Rate
and showing in reasonable detail the facts upon which such adjustment is based. Promptly after
delivery of such Officers’ Certificate, the Company shall prepare a notice stating that the
Conversion Rate has been adjusted and setting forth the adjusted Conversion Rate and the date on
which each adjustment becomes effective, and shall mail such notice to each Holder at the address
of such Holder as it appears in the Note Register within twenty (20) days of the effective date of
such adjustment. Failure to deliver such notice shall not effect the legality or validity of any
such adjustment.

 

 

     Section 10.07. Notice Prior to Certain Actions. In case at any time after the date hereof:

     (a) the Company shall declare a dividend (or any other distribution) on its Common Stock
payable otherwise than in cash out of its capital surplus or its consolidated retained earnings;

     (b) the Company shall authorize the granting to the holders of its Common Stock of rights or
warrants to subscribe for or purchase any shares of Capital Stock of any class (or of securities
convertible into shares of Capital Stock of any class) or of any other rights;

     (c) there shall occur any reclassification of the Common Stock of the Company (other than a
subdivision or combination of its outstanding Common Stock, a change in par value, a change from
par value to no par value or a change from no par value to par value), or any merger,
consolidation, statutory share exchange or combination to which the Company is a party and for
which approval of any shareholders of the Company is required, or the sale, transfer or conveyance
of all or substantially all of the assets of the Company; or

     (d) there shall occur the voluntary or involuntary dissolution, liquidation or winding up of
the Company;

the Company shall cause to be filed at each office or agency maintained for the purpose of
conversion of Notes pursuant to Section 2.04, and shall cause to be provided to the Trustee and all
Holders in accordance with Section 10.07, at least twenty (20) days (or ten (10) days in any case
specified in clause (a) or (b) above) prior to the applicable record or effective date hereinafter
specified, a notice stating:

     (i) the date on which a record is to be taken for the purpose of such dividend,
distribution, 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, rights
or warrants are to be determined, or

     (ii) the date on which such reclassification, merger, consolidation, statutory share
exchange, combination, sale, transfer, conveyance, dissolution, liquidation or winding up is
expected to become effective, and the date as of which it is expected that holders of Common
Stock of record shall be entitled to exchange their shares of Common Stock for securities,
cash or other property deliverable upon such reclassification, merger, consolidation,
statutory share exchange, sale, transfer, dissolution, liquidation or winding up.

     Neither the failure to give such notice nor any defect therein shall affect the legality or
validity of the proceedings or actions described in clauses (a) through (d) of this Section 10.07.

     Section 10.08. Company to Reserve Common Stock. The Company shall at all times reserve and
keep available, free from preemptive rights, out of its authorized but unissued Common Stock, for
the purpose of effecting the conversion of Notes, the full number of shares of fully paid and
nonassessable Common Stock then issuable upon the conversion of all Notes outstanding (assuming
that at the time of computation of such number of shares, all such Notes would be converted by a
single Holder).

 

 

     Section 10.09. Taxes on Conversions. Except as provided in the next sentence, the Company
will pay any and all taxes (other than taxes on income) and duties that may be payable in respect
of the issue or delivery of shares of Common Stock on conversion of Notes pursuant hereto. A
Holder delivering a Note for conversion shall be liable for and will be required to pay any tax or
duty which may be payable in respect of any transfer involved in the issue and
delivery of shares of Common Stock in a name other than that of the Holder of the Note or
Notes to be converted, and no such issue or delivery shall be made unless the Person requesting
such issue has paid to the Company the amount of any such tax or duty, or has established to the
satisfaction of the Company that such tax or duty has been paid.

     Section 10.10. Covenant as to Common Stock. The Company covenants that all shares of Common
Stock which may be issued upon conversion of Notes will upon issue be fully paid and nonassessable
and, except as provided in Section 10.09, the Company will pay all taxes, liens and charges with
respect to the issue thereof.

     Section 10.11. Cancellation of Converted Notes. All Notes surrendered for conversion shall
be delivered to the Trustee to be canceled by or at the direction of the Trustee, which shall
dispose of the same as provided in Section 2.11.

     Section 10.12. Effect of Reclassification, Consolidation, Merger or Sale. If any of
following events (each, a “Merger Event”) occurs:

     (a) any reclassification or change of the outstanding shares of Common Stock (other than a
change in par value, or from par value to no par value, or from no par value to par value, or as a
result of a subdivision or combination);

     (b) any merger, consolidation, statutory share exchange or combination of the Company with
another corporation as a result of which holders of Common Stock shall be entitled to receive
stock, securities or other property or assets (including cash) with respect to or in exchange for
such Common Stock; or

     (c) any sale or conveyance of all or substantially all the properties and assets of the
Company to any other corporation as a result of which holders of Common Stock shall be entitled to
receive stock, securities or other property or assets (including cash) with respect to or in
exchange for such Common Stock;

then, at and after the effective time of the Merger Event, the right to convert each $1,000
principal amount of Notes shall be changed into a right to convert such principal amount of Notes
into the kind and amount of shares of stock, other securities or other property or assets
(including cash or any combination thereof) that a holder of a number of shares of Common Stock
equal to the Conversion Rate immediately prior to such Merger Event would have owned or been
entitled to receive (the “Reference Property”, with each “unit of Reference Property” meaning the
kind and amount of Reference Property that a holder of one share of Common Stock is entitled to
receive) upon such Merger Event and, prior to or at the effective time of such Merger Event, the
Company or the successor or purchasing corporation, as the case may be, shall execute with the
Trustee and the Company a supplemental indenture providing for such change in the right to convert
each $1,000 principal amount of Notes.

 

 

     If the Merger Event causes the Common Stock to be converted into, or exchanged for, the right
to receive more than a single type of consideration (determined based in part upon any form of
stockholder election), then (i) the Reference Property into which the Notes will be convertible
shall be deemed to be the weighted average of the types and amounts of consideration received by
the holders of Common Stock that affirmatively make such an election, and (ii) the unit of
Reference Property for purposes of the immediately preceding paragraph shall refer to the
consideration referred to in clause (i) attributable to one share of Common Stock.

     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 10. If, in the case of any
such reclassification, change, merger, consolidation, statutory share exchange, combination, sale
or conveyance, the stock or other securities and assets receivable thereupon by a holder of shares
of Common Stock includes shares of stock or other securities and assets of a corporation other than
the successor or purchasing corporation, as the case may be, in such reclassification, change,
merger, consolidation, statutory share exchange, 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 Notes as the Company shall
reasonably consider necessary by reason of the foregoing, including to the extent practicable the
provisions providing for the repurchase rights set forth in Article 3.

     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 Note Register, within twenty (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 10.12 shall similarly apply to successive
reclassifications, mergers, consolidations, statutory share exchanges, combinations, sales and
conveyances.

     If this Section 10.12 applies to any event or occurrence, Section 10.05 shall not apply.

     Section 10.13. Responsibility of Trustee for Conversion Provisions. The Trustee, subject to
the provisions of Section 7.01, and any Conversion Agent shall not at any time be under any duty or
responsibility to any Holder of Notes to determine whether any facts exist which may require any
adjustment of the Conversion Rate, or with respect to the nature or intent of any such adjustments
when made, or with respect to the method employed, or herein or in any supplemental indenture
provided to be employed, in making the same. Neither the Trustee, subject to the provisions of
Section 7.01, nor any Conversion Agent shall be accountable with respect to the validity or value
(of the kind or amount) of any Common Stock, or of any other securities or property, which may at
any time be issued or delivered upon the conversion of any Note; and it or they do not make any
representation with respect thereto. Neither the Trustee, subject to the provisions of Section
7.01, nor any Conversion Agent shall be responsible for any failure of the Company to make any cash
payment or to issue, transfer or deliver any shares of stock or share certificates or other
securities or property upon the surrender of any Note for the purpose of conversion; and the
Trustee, subject to the provisions of Section 7.01, and any Conversion Agent shall not be
responsible or liable for any failure of the Company to comply with any of the covenants of the
Company contained in this Article 10.

 

 

     Section 10.14. Stockholder Rights Plans. To the extent that the Company has a rights plan in
effect upon conversion of the Notes, each share of Common Stock issued upon such conversion 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 such stockholder rights plan, 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 plan so that the Holders would not be entitled to receive any rights in respect
of Common Stock issuable upon conversion of the Notes, the Conversion Rate shall be adjusted at the
time of separation as if the Company distributed to all or substantially all holders of Common
Stock shares of Capital Stock of the Company, evidences of its indebtedness, other assets or
property or rights, options or warrants to acquire its Capital Stock or other securities as
provided in Section 10.05(c), subject to readjustment in the event of the expiration, termination
or redemption of such rights.

     Section 10.15. Limit on Beneficial Ownership. Notwithstanding any other provision hereof, no
Holder shall have the “right to acquire” (within the meaning of Rule 312.04(g) of The New York
Stock Exchange Listed Company Manual (the “NYSE Manual”) or any successor rules) shares of Common
Stock upon conversion of any Note or Notes hereunder or upon conversion of any share or shares of
Preferred Stock under the Certificate of Designations be entitled to take delivery of any shares of
Common Stock deliverable hereunder or thereunder, to the extent (but only to the extent) that,
after such receipt of any shares of Common Stock upon the conversion of such Note or Notes or such
share of shares or otherwise hereunder or thereunder, such Holder would directly or indirectly
beneficially own (as such term is defined for purposes of Section 13 or Section 16 of the Exchange
Act and rules promulgated thereunder) in excess of 5,203,088 shares of Common Stock (the “Threshold
Number of Shares”). Any purported delivery hereunder shall be void and have no effect to the extent
(but only to the extent) that, after such delivery, such Holder would directly or indirectly so
beneficially own in excess of the Threshold Number of Shares. If any delivery owed to any Holder
hereunder is not made, in whole or in part, as a result of this provision, the Company’s obligation
to make such delivery shall not be extinguished and the Company shall make such delivery as
promptly as practicable after, but in no event later than one Business Day after, such Holder gives
notice to the Company that, after such delivery, such Holder would not directly or indirectly so
beneficially own in excess of the Threshold Number of Shares.

ARTICLE 11

Miscellaneous

     Section 11.01. Trust Indenture Act Controls. This Indenture is hereby made subject to, and
shall be governed by, the provisions of the TIA required to be part of and to govern indentures
qualified under the TIA; provided, however, that, unless otherwise required by law, notwithstanding
the foregoing, this Indenture and the Notes issued hereunder shall not be subject to the provisions
of subsections (a)(1), (a)(2), and (a)(3) of Section 314 of the TIA as now in effect or as
hereafter amended or modified; and provided further that this shall not require this Indenture or
the Trustee to be qualified under the TIA prior to the time such qualification is in fact required
under the terms of the TIA, nor shall it constitute any admission or

 

 

acknowledgment by any party to
the Indenture that any such qualification is required prior to the time such qualification is in
fact required under the terms of the TIA. If any provision of this Indenture limits, qualifies, or
conflicts with another provision which is required to be included in this Indenture by the TIA, the
required provision shall control.

     Section 11.02. Notices. Any request, demand, authorization, notice, waiver, consent or
communication shall be in writing and delivered in person or mailed by first-class mail, postage
prepaid, addressed as follows or transmitted by facsimile transmission (confirmed by guaranteed
overnight courier) to the following facsimile numbers:

     if to the Company:

McMoRan Exploration Co.

1615 Poydras Street

New Orleans, Louisiana 70112

Attention: Treasurer

Facsimile No. (504) 582-4511

     if to the Trustee:

U.S. Bank National Association

5555 San Felipe

Suite 1150

Houston, Texas 77056

Attention: Corporate Trust Services

Facsimile No. (713) 235-9213

     The Company or the Trustee by notice given to the other in the manner provided above may
designate additional or different addresses for subsequent notices or communications.

     Any notice or communication given to a Holder shall be mailed to the Holder, by first-class
mail, postage prepaid, at the Holder’s address as it appears on the registration books of the Note
Registrar and shall be sufficiently given if so mailed within the time prescribed.

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

     If the Company mails a notice or communication to the Holders, it shall mail a copy to the
Trustee and each Note Registrar, Paying Agent, Conversion Agent or co-registrar.

     Section 11.03. Communication by Holders with Other Holders. Holders may communicate pursuant
to Section 312(b) of the TIA with other Holders with respect to their rights under this Indenture
or the Notes. The Company, the Trustee, the Note Registrar, the Paying Agent, the Conversion Agent
and anyone else shall have the protection of Section 312(c) of the TIA.

 

 

     Section 11.04. Certificate and Opinion as to Conditions Precedent. Upon any request or
application by the Company to the Trustee to take any action under this Indenture, the Company
shall furnish to the Trustee:

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

     (b) an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions
precedent have been complied with.

     Section 11.05. Statements Required in Certificate or Opinion. Each Officers’ Certificate or
Opinion of Counsel with respect to compliance with a covenant or condition provided for in this
Indenture shall include:

     (a) a statement that each person making such Officers’ Certificate or Opinion of Counsel has
read such covenant or condition;

     (b) a brief statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such Officers’ Certificate or Opinion of Counsel are
based;

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

     (d) a statement that, in the opinion of such person, such covenant or condition has been
complied with.

     Section 11.06. Separability Clause. In case any provision in this Indenture or in the Notes
shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

     Section 11.07. Rules by Trustee, Paying Agent, Conversion Agent and Note Registrar. The
Trustee may make reasonable rules for action with or without a meeting of Holders. The Note
Registrar, Conversion Agent and the Paying Agent may make reasonable rules for their functions.

     Section 11.08. Legal Holidays. If any specified date (including a date for giving notice) is
a Legal Holiday, the action shall be taken on the next succeeding day that is not a Legal Holiday,
and, if the action to be taken on such date is a payment in respect of the Notes, no interest, if
any, shall accrue for the intervening period.

     Section 11.09. Governing Law. THIS INDENTURE AND THE NOTES, AND ANY CLAIM, CONTROVERSY OR
DISPUTE ARISING UNDER OR RELATED TO THIS INDENTURE OR THE NOTES, WILL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

 

     Section 11.10. No Recourse Against Others. A director, officer, employee or stockholder, as
such, of the Company shall not have any liability for any obligations of the Company under the
Notes or this Indenture or for any claim based on, in respect of or by reason of such obligations
or their creation. By accepting a Note, each Holder shall waive and release
all such liability. The waiver and release shall be part of the consideration for the issue
of the Notes.

     Section 11.11. Successors. All agreements of the Company in this Indenture and the Notes
shall bind its successor. All agreements of the Trustee in this Indenture shall bind its
successor.

     Section 11.12. Benefits of Indenture. Nothing in this Indenture or in the Notes, express or
implied, shall give to any Person, other than the parties hereto, any Paying Agent, any
authenticating agent, any Note Registrar and their successors hereunder and the holders of Notes,
any benefit or any legal or equitable right, remedy or claim under this Indenture.

     Section 11.13. Table of Contents, Heading, etc. The table of contents and the titles and
headings of the Articles and Sections of this Indenture have been inserted for convenience of
reference only, are not to be considered a part hereof, and shall in no way modify or restrict any
of the terms or provisions hereof.

     Section 11.14. Authenticating Agent. The Trustee may appoint an authenticating agent (the
“Authenticating Agent”) that shall be authorized to act on its behalf, and subject to its
direction, in the authentication and delivery of Notes in connection with the original issuance
thereof and transfers and exchanges of Notes hereunder, including under Section 2.07, Section 2.08,
Section 3.02, Section 3.08, Section 9.05 and Section 10.02, as fully to all intents and purposes as
though the authenticating agent had been expressly authorized by this Indenture and those Sections
to authenticate and deliver Notes. For all purposes of this Indenture, the authentication and
delivery of Notes by the Authenticating Agent shall be deemed to be authentication and delivery of
such Notes “by the Trustee” and a certificate of authentication executed on behalf of the Trustee
by an Authenticating Agent shall be deemed to satisfy any requirement hereunder or in the Notes for
the Trustee’s certificate of authentication. Such Authenticating Agent shall at all times be a
Person eligible to serve as trustee hereunder pursuant to Section 7.09.

     Any corporation into which any Authenticating Agent may be merged or converted or with which
it may be consolidated, or any corporation resulting from any merger, consolidation or conversion
to which any Authenticating Agent shall be a party, or any corporation succeeding to all or
substantially all the corporate trust business of any Authenticating Agent, shall be the successor
of the Authenticating Agent hereunder, if such successor corporation is otherwise eligible under
this Section 11.14, without the execution or filing of any paper or any further act on the part of
the parties hereto or the Authenticating Agent or such successor corporation.

     Any Authenticating Agent may at any time resign by giving written notice of resignation to the
Trustee and to the Company. The Trustee may at any time terminate the agency of any Authenticating
Agent by giving written notice of termination to such Authenticating Agent and to the Company.
Upon receiving such a notice of resignation or upon such a termination, or in

 

 

case at any time any Authenticating Agent shall cease to be eligible under this Section 11.14, the Trustee shall either
promptly appoint a successor Authenticating Agent or itself assume the duties and obligations of
the former Authenticating Agent under this Indenture and, upon such appointment of a successor
Authenticating Agent, if made, shall give written notice of such appointment of a successor Authenticating Agent to the Company and shall mail notice of such
appointment of a successor Authenticating Agent to all holders of Notes as the names and addresses
of such holders appear on the Note Register.

     The Company agrees to pay to the Authenticating Agent from time to time such reasonable
compensation for its services as shall be agreed upon in writing between the Company and the
Authenticating Agent.

     The provisions of Section 2.07, Section 2.08, Section 3.02, Section 3.08, Section 9.05,
Section 10.02 and this Section 11.14 shall be applicable to any Authenticating Agent.

     Section 11.15. Execution in Counterparts. This Indenture may be executed in any number of
counterparts, each of which shall be an original, but such counterparts shall together constitute
but one and the same instrument. The exchange of copies of this Indenture and of signature pages
by facsimile or PDF transmission shall constitute effective execution and delivery of this
Indenture as to the parties hereto and may be used in lies of the original Indenture for all
purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be
their original signatures for all purposes.

[Remainder of page intentionally left blank]

 

 

     IN WITNESS WHEREOF, the undersigned, being duly authorized, have executed this Indenture on
behalf of the respective parties hereto as of the date first above written.

	 	 	 	 	 
	MCMORAN EXPLORATION CO.

 	 	 
	By:  	/s/ Kathleen L. Quirk
 	 	 
	 	Name:  	Kathleen L. Quirk 	 	 
	 	Title:  	Senior Vice President & Treasurer 	 	 
	 
	U.S. BANK NATIONAL ASSOCIATION,

as Trustee

 	 	 
	By:  	/s/ Steven A. Finklea
 	 	 
	 	Name:  	Steven A. Finklea 	 	 
	 	Title:  	Vice President 	 	 

 

 

	 	 	 	 	 

EXHIBIT A

[FORM
OF FACE OF NOTE]

[INCLUDE FOLLOWING LEGEND IF A GLOBAL NOTE]

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

     TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF THE DEPOSITORY TRUST COMPANY, OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND
TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
RESTRICTIONS SET FORTH IN ARTICLE TWO OF THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.]

     IF REQUIRED PURSUANT TO SECTION 2.07(c): [THIS SECURITY AND THE SHARES OF COMMON STOCK
ISSUABLE UPON CONVERSION OF THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY, THE
SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS SECURITY NOR ANY INTEREST OR PARTICIPATION
HEREIN OR THEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT
SUBJECT TO, REGISTRATION.

     THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE
TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) THAT IS THE
LATER OF (1) THE DATE THAT IS ONE YEAR AFTER THE DATE OF ORIGINAL ISSUANCE OF THIS SECURITY, OR
SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144 UNDER THE SECURITIES ACT OR ANY SUCCESSOR
PROVISION THERETO, AND (2) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY APPLICABLE LAW, ONLY (A)
TO MCMORAN EXPLORATION CO. OR ONE OF ITS SUBSIDIARIES, (B) UNDER A REGISTRATION STATEMENT THAT HAS
BEEN DECLARED EFFECTIVE UNDER THE

A-1

 

SECURITIES ACT, (C) TO A PERSON THE HOLDER REASONABLY BELIEVES IS
A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT THAT IS PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER QUALIFIED
INSTITUTIONAL BUYER AND TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE
144A, ALL IN COMPLIANCE WITH RULE 144A (IF AVAILABLE), OR (D) PURSUANT TO THE EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 (IF AVAILABLE) OR ANY OTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. PRIOR TO THE RESALE RESTRICTION TERMINATION DATE,
THE COMPANY AND THE TRUSTEE RESERVE THE RIGHT TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO THE COMPANY, AND IN EACH OF THE FOREGOING
CASES, A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS SECURITY IS
COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE
REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.]

A-2

 

MCMORAN EXPLORATION CO.

4.00% Convertible Senior Note due 2017

			
	No. [_____]
	 	[Initially]1 $[               ]

[CUSIP No. 582411 AK0

ISIN No. US582411AK06]2

     MCMORAN EXPLORATION, CO., a corporation duly organized and validly existing under the laws of
the State of Delaware (the “Company,” which term includes any successor corporation or other entity
under the Indenture referred to on the reverse hereof), for value received hereby promises to pay
to [CEDE & CO.], or registered assigns, the principal sum as set forth [above] [in the “Schedule of
Exchanges of Notes” attached hereto],3 which amount, taken together with the principal
amounts of all other outstanding Notes, shall not, unless permitted by the Indenture, exceed
$200,000,000 in aggregate at any time, in accordance with the rules and procedures of the
Depositary, on December 30, 2017, and interest thereon as set forth below.

     This Note shall bear interest at the rate of 4.00% per year from December 30, 2010, or from
the most recent date on which interest has been paid or provided for, to, but excluding, the next
scheduled Interest Payment Date until December 30, 2017. Interest is payable semi-annually in
arrears on each February 15 and August 15, commencing on August 15, 2011, to Holders of record at
the close of business on the immediately preceding February 1 or August 1 (whether or not such day
is a Business Day), respectively. Additional Interest will be payable pursuant to the Registration
Rights Agreement and as set forth in Section 6.03 of the within-mentioned Indenture, and any
reference to interest on, or in respect of, any Note therein shall be deemed to include Additional
Interest if, in such context, Additional Interest is, was or would be payable pursuant to the
Registration Rights Agreement or Section 6.03 and any express mention of the payment of Additional
Interest in any provision therein shall not be construed as excluding Additional Interest in those
provisions thereof where such express mention is not made. Accrued interest on the Notes shall be
computed on the basis of a 360-day year composed of twelve 30-day months.

 

			
	1	 	Include if a Global Note
	 
	2	 	Include if Global Note. At such time as
(1) the Company has delivered the Free Transferability Certificate to the
Trustee pursuant to Section 2.15 of the Indenture and (2) the Resale
Restriction Termination Date has occurred, the CUSIP number for this Note shall
be deemed to be CUSIP No. [______] and the ISIN number for this Note shall be
deemed to be ISIN No. [______].
	 
	3	 	Include if a Global Note

A-3

 

     The Company shall pay the principal of and interest on this Note, so long as such Note is a
Global Note, in immediately available funds to the Depositary or its nominee, as the case may be,
as the registered Holder of such Note. As provided in and subject to the provisions of the
Indenture, the Company shall pay the principal of any Notes (other than Notes that are Global
Notes) at the office or agency designated by the Company for that purpose in the Borough of
Manhattan, The City of New York. The Company has initially designated the Trustee as its Paying
Agent and Note Registrar in respect of the Notes and its agency in the Borough of Manhattan, The
City of New York as a place where Notes may be presented for payment or for registration of
transfer.

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

     This Note, and any claim, controversy or dispute arising under or related to this Note, shall
be construed in accordance with and governed by the laws of the State of New York.

     In the case of any conflict between this Note and the Indenture, the provisions of the
Indenture shall control.

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

[Remainder of page intentionally left blank]

A-4

 

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

	 	 	 	 	 
	 	MCMORAN EXPLORATION CO.

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Dated:

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

U.S. BANK NATIONAL ASSOCIATION,

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

in the within-named Indenture.

	 	 	 	 	 
	 	 	 
	By:  	 	 	 
	 	Authorized Signatory 	 	 
	 	 	 	 

A-5

 

	 	 	 	 	 

[FORM OF REVERSE OF NOTE]

MCMORAN EXPLORATION CO.

4.00% Convertible Senior Note due 2017

     This Note is one of a duly authorized issue of Notes of the Company, designated as its 4.00%
Convertible Senior Notes due 2017 (the “Notes”), limited to the aggregate principal amount of
$200,000,000 all issued or to be issued under and pursuant to an Indenture dated as of December 30,
2010 (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 Notes.

     In case an Event of Default, as defined in the Indenture, shall have occurred and be
continuing, the principal of, and interest on, all Notes may be declared, by either the Trustee or
Holders of at least 25% of the aggregate principal amount of Notes then outstanding, and upon said
declaration shall become, due and payable, in the manner, with the effect and subject to the
conditions and certain exceptions set forth in the Indenture.

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

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

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the
principal (including the Change of Control Purchase Price, if applicable) of and accrued and unpaid
interest on this Note at the place, at the respective times, at the rate and in the lawful money
herein prescribed.

     The Notes are issuable in registered form without coupons in denominations of $1,000 principal
amount and integral multiples thereof. At the office or agency of the Company referred to on the
face hereof, and in the manner and subject to the limitations provided in the Indenture,
Notes may be exchanged for a like aggregate principal amount of Notes of other authorized

A-6

 

denominations, without payment of any service charge but, if required by the Company or Trustee,
with payment of a sum sufficient to cover any transfer or similar tax that may be imposed in
connection therewith as a result of the name of the Holder of the new Notes issued upon such
exchange of Notes being different from the name of the Holder of the old Notes surrendered for such
exchange.

     The Notes shall be redeemable at the Company’s option in accordance with the terms and
conditions specified in the Indenture.

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

     Subject to the provisions of the Indenture, the Holder hereof has the right, at its option,
during certain periods and upon the occurrence of certain conditions specified in the Indenture,
prior to the close of business on the second Scheduled Trading Day immediately preceding the
Maturity Date, to convert any Notes or portion thereof that is $1,000 or an integral multiple
thereof, into shares of Common Stock at the Conversion Rate specified in the Indenture, as adjusted
from time to time as provided in the Indenture.

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

A-7

 

ABBREVIATIONS

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

TEN COM = as tenants in common

UNIF GIFT MIN ACT = Uniform Gifts to Minors Act

CUST = Custodian

TEN ENT = as tenants by the entireties

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

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

A-8

 

SCHEDULE A

SCHEDULE
OF EXCHANGES OF NOTES4

MCMORAN EXPLORATION CO.

4.00% Convertible Senior Notes due 2017

     The initial principal amount of this Global Note is [            ] ($[          
]). The following increases or decreases in this Global Note have been made:

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

 

			
	4	 	Include if a Global Note

A-9

 

[FORM OF CONVERSION NOTICE]

	TO: 	 	 MCMORAN EXPLORATION CO.

U.S. BANK NATIONAL ASSOCIATION

     The undersigned registered owner of this Note hereby irrevocably exercises the option to
convert this Note, or the portion thereof (which is $1,000 or an integral multiple thereof) below
designated, into shares of Common Stock of McMoRan Exploration Co. in accordance with the terms of
the Indenture referred to in this Note, and directs that the shares issuable and deliverable upon
such conversion, together with any check in payment for fractional shares and any Notes
representing any unconverted principal amount hereof, be issued and delivered to the registered
holder hereof unless a different name has been indicated below. If shares or any portion of this
Note not converted are to be issued in the name of a person other than the undersigned, the
undersigned will provide the appropriate information below and pay all transfer taxes payable with
respect thereto. Any amount required to be paid by the undersigned on account of interest
accompanies this Note.

Dated: ___________________

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Signature(s) 	 
	 	 	 
	 

Signature(s) must be guaranteed by an “eligible guarantor institution” meeting the requirements of
the Note 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 Note Registrar in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Signature Guarantee 	 
	 	 	 

A-10

 

	 	 	 	 	 

     Fill in the registration of shares of Common Stock if to be issued, and Notes if to be
delivered, other than to and in the name of the registered holder:

	 	 	 	 	 
	 	 	 
	
 	 	 
	(Name) 	 	 
	 	 	 
	
 	 	 
	(Street Address)
 	 	 
	 	 	 
	
 	 	 
	(City, State and Zip Code)
 	 	 
	 	 	 
	
 	 	 
	Please print name and address

Principal amount to be converted

(if less than all):

 	 	 
	 	 	 
	$	
 	 
	 	
 	 	 
	
Social Security or Other Taxpayer

Identification
Number: _______________________	 
	 

	 	 

A-11

 

[FORM OF CHANGE OF CONTROL PURCHASE NOTICE]

	TO:  	 	MCMORAN EXPLORATION CO.

U.S. BANK NATIONAL ASSOCIATION

     The undersigned registered owner of this Note hereby irrevocably acknowledges receipt of a
notice from McMoRan Exploration Co. (the “Company”) as to the occurrence of a Change of Control
with respect to the Company and requests and instructs the Company to repay the entire principal
amount of this Note (Certificate No. ____), or the portion thereof (which is $1,000 or an integral
multiple thereof) below designated, in accordance with the terms of the Indenture referred to in
this Note to the registered holder hereof. If the Company has elected to pay the Change of Control
Purchase Price and, if applicable, the Make-Whole Premium, in Common Stock, the undersigned hereby
elects to receive the Change of Control Purchase Price in Common Stock.

Dated: ___________________

	 	 	 	 	 
	 	
 	 
	 	 	 
	 	
 	 
	 	Signature(s) 	 
	 	 	 
	 

NOTICE: The above signatures of the holder(s) hereof must correspond with the name as written upon
the face of the Note in every particular without alteration or enlargement or any change whatever.

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

	 	 	 	 	 
	 	 	 
	 	$	
 	 
	 	 	 
	 	
 	 
	 	Social Security or Other 	 
	 	Taxpayer Identification Number 	 
	 

A-12

 

[FORM OF ASSIGNMENT]

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

     In connection with any transfer of the Note prior to the expiration of the holding period
applicable to sales thereof under Rule 144 under the Securities Act (or any successor provision)
(other than any transfer pursuant to a registration statement that has been declared effective
under the Securities Act), the undersigned confirms that such Note is being transferred:

	o 	 	 To McMoRan Exploration Co. or a subsidiary thereof; or

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

	o 	 	 Inside the United States to an Institutional Accredited Investor pursuant to and in
compliance with the Securities Act of 1933, as amended; or

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

and unless the box below is checked, the undersigned confirms that such Note is not being
transferred to an “affiliate” of the Company as defined in Rule 144 under the Securities Act of
1933, as amended (an “Affiliate”).

	o 	 	 The transferee is an Affiliate of the Company.

Dated: ___________________

	 	 	 	 	 
	 	
 	 
	 	 	 
	 	
 	 
	 	Signature(s) 	 
	 	 	 
	 

Signature(s) must be guaranteed by an “eligible guarantor institution” meeting the requirements of
the Note 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 Note Registrar in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

	 	 	 	 	 
	 	 	 
	 	

 	 
	 	Signature Guarantee 	 
	 	 	 

A-13

 

	 	 	 	 	 

NOTICE: The signature of the conversion notice, the Change of Control Purchase Notice or the
assignment must correspond with the name as written upon the face of the Note in every particular
without alteration or enlargement or any change whatever.

A-14

 

EXHIBIT B

[FORM OF FREE TRANSFERABILITY CERTIFICATE]

	 	 	 	 	 

	U.S. Bank National Association

	[_______]

	[_______]

	Attention:  Corporate
Trust Services
	 	 
	 
	Reference:

	 	McMoRan Exploration Co.
	 	 	4.00% Convertible Senior Notes due 2017
	 

	 	Restricted CUSIP:
	 	582411 AK0
	 

	 	Unrestricted CUSIP:
	 	582411 AJ3
	 

	 	Restricted ISIN:
	 	[_______]
	 

	 	Unrestricted ISIN:
	 	[_______]

Dear Sir/Madam:

The 4.00% Convertible Notes due 2017 (the “Notes”) of McMoRan Exploration Co. (the “Company”) [will
be][have become] freely tradable without restrictions by non-affiliates of the Company on [_____],
20[__] pursuant to Rule 144 under the Securities Act of 1933, as amended, in accordance with
Section 2.07(c) of the Indenture, dated as of December 30, 2010 (the “Indenture”), between the
Company and U.S. Bank National Association, as Trustee (the “Trustee”), pursuant to which the Notes
were issued. In connection therewith, the Company hereby instructs you that:

(i) the restrictive legend on the Notes specified in Section 2.07(c) of the Indenture and
set forth on the Notes shall be deemed to have been removed from the Global Note(s) on
[_____], 20[__], as provided in the Indenture, without further action on the part of
Holders; and

(ii) the restricted CUSIP number and the restricted ISIN number for the Notes shall be
deemed to have been removed from the Global Note(s) and replaced with the unrestricted CUSIP
number and the unrestricted ISIN number set forth therein on [_____], 20[__], as provided in
the Indenture, without further action on the part of Holders.

Capitalized terms used but not defined herein shall have the meanings set forth in the Indenture.

	 	 	 	 	 
	 	Very truly yours,

McMoRan Exploration Co.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

B-1

 

	 	 	 	 	 

EXHIBIT C

[Form of Transfer Certificate]

     In connection with any transfer of any of the Notes within the period prior to the expiration
of the holding period applicable to the sales thereof under Rule 144 under the Securities Act of
1933, as amended (the “Securities Act”) (or any successor provision), the undersigned registered
owner of this Note hereby certifies with respect to $____________ principal amount of the
above-captioned Notes presented or surrendered on the date hereof (the “Surrendered Notes”) for
registration of transfer, or for exchange or conversion where the Notes issuable upon such exchange
or conversion are to be registered in a name other than that of the undersigned registered owner
(each such transaction being a “transfer”), that such transfer complies with the restrictive legend
set forth on the face of the Surrendered Notes for the reason checked below:

	o 	 	 A transfer of the Surrendered Notes is made to the Company or any subsidiaries; or

	o 	 	 The transfer of the Surrendered Notes complies with Rule 144A under the U.S. Securities Act
of 1933, as amended (the “Securities Act”); or

	o 	 	 The transfer of the Surrendered Notes is pursuant to an effective registration statement
under the Securities Act; or

	o 	 	 The transfer of the Surrendered Notes is pursuant to another available exemption from the
registration requirement of the Securities Act.

and unless the box below is checked, the undersigned confirms that, to the undersigned’s knowledge,
such Notes are not being transferred to an “affiliate” of the Company as defined in Rule 144 under
the Securities Act (an “Affiliate”).

	o 	 	 The transferee is an Affiliate of the Company.

	 	 	 	 	 
	 	 	 
	DATE: ____________ 	 	 
	 	Signature(s) 	 
	 	 	 
	 

(If the registered owner is a corporation, partnership or

fiduciary, the title of the Person signing on behalf of

such registered owner must be stated.)

C-1

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