exv4w2



 






Exhibit 4.2




EXECUTION COPY



 




INTEL CORPORATION



as Issuer




AND




Citibank, N.A.



as Trustee





 







Indenture



Dated as of December 16, 2005





 







2.95% Junior Subordinated Convertible Debentures due 2035



 





 









 








TABLE OF CONTENTS




	 	 	 	 	 	 	 
	 	 	 	 	Page
	 

	 	ARTICLE 1	 	 	 	 
	Definitions and Other Provisions of General Application
	 
	 	 	 	 	 	 
	Section 1.01.

	 	Definitions
	 	 	1	 
	Section 1.02.

	 	Compliance Certificates and Opinions
	 	 	16	 
	Section 1.03.

	 	Form of Documents Delivered to Trustee
	 	 	16	 
	Section 1.04.

	 	Acts of Holders; Record Dates
	 	 	17	 
	Section 1.05.

	 	Notices, Etc., to Trustee and Company
	 	 	18	 
	Section 1.06.

	 	Notice to Holders; Waiver
	 	 	18	 
	Section 1.07.

	 	Conflict with Trust Indenture Act
	 	 	19	 
	Section 1.08.

	 	Effect of Headings and Table of Contents
	 	 	19	 
	Section 1.09.

	 	Successors and Assigns
	 	 	19	 
	Section 1.10.

	 	Severability Clause
	 	 	19	 
	Section 1.11.

	 	Benefits of Indenture
	 	 	19	 
	Section 1.12.

	 	Governing Law
	 	 	19	 
	Section 1.13.

	 	Legal Holiday
	 	 	19	 
	Section 1.14.

	 	No Recourse Against Others
	 	 	20	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 2	 	 	 	 
	 

	 	Security Forms	 	 	 	 
	 
	 	 	 	 	 	 
	Section 2.01.

	 	Forms Generally
	 	 	20	 
	Section 2.02.

	 	Form of Face of Security
	 	 	20	 
	Section 2.03.

	 	Form of Reverse of Security
	 	 	25	 
	Section 2.04.

	 	Form of Trustee’s Certificate of Authentication
	 	 	35	 
	Section 2.05.

	 	Legend on Restricted Securities
	 	 	35	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 3	 	 	 	 
	 

	 	The Securities	 	 	 	 
	 
	 	 	 	 	 	 
	Section 3.01.

	 	Title and Terms; Payments
	 	 	35	 
	Section 3.02.

	 	Denominations
	 	 	36	 
	Section 3.03.

	 	Execution, Authentication, Delivery and Dating
	 	 	36	 
	Section 3.04.

	 	Temporary Securities
	 	 	37	 
	Section 3.05.

	 	Registration; Registration of Transfer and Exchange;
Restrictions on Transfer
	 	 	37	 
	Section 3.06.

	 	Mutilated, Destroyed, Lost and Stolen Securities
	 	 	40	 
	Section 3.07.

	 	Persons Deemed Owners
	 	 	40	 
	Section 3.08.

	 	Book-Entry Provisions for Global Securities
	 	 	41	 
	Section 3.09.

	 	Cancellation and Transfer Provisions
	 	 	42	 
	Section 3.10.

	 	CUSIP Numbers
	 	 	44	 






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	 	 	 	 	Page
	 

	 	ARTICLE 4	 	 	 	 
	 

	 	Interest	 	 	 	 
	 
	 	 	 	 	 	 
	Section 4.01.

	 	Generally
	 	 	44	 
	Section 4.02.

	 	Contingent Interest
	 	 	46	 
	Section 4.03.

	 	Trustee’s Responsibilities in Respect of Contingent Interest
	 	 	47	 
	Section 4.04.

	 	Payment of Contingent Interest
	 	 	47	 
	Section 4.05.

	 	Contingent Interest Notification
	 	 	47	 
	Section 4.06.

	 	Option to Extend Interest Payment
	 	 	48	 
	Section 4.07.

	 	Actions Prohibited During Extension Periods
	 	 	48	 
	Section 4.08.

	 	Notification of Extension Period
	 	 	49	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 5	 	 	 	 
	 

	 	Subordination	 	 	 	 
	 
	 	 	 	 	 	 
	Section 5.01.

	 	Agreement of Subordination
	 	 	50	 
	Section 5.02.

	 	Payments to Holders
	 	 	50	 
	Section 5.03.

	 	Subrogation of Securities
	 	 	53	 
	Section 5.04.

	 	Authorization to Effect Subordination
	 	 	54	 
	Section 5.05.

	 	Notice to Trustee
	 	 	54	 
	Section 5.06.

	 	Trustee’s Relation to Senior Debt
	 	 	55	 
	Section 5.07.

	 	No Impairment of Subordination
	 	 	56	 
	Section 5.08.

	 	Certain Conversions Not Deemed Payment
	 	 	56	 
	Section 5.09.

	 	Article Applicable to Paying Agents
	 	 	56	 
	Section 5.10.

	 	Senior Debt Entitled to Rely
	 	 	56	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 6	 	 	 	 
	 

	 	Covenants	 	 	 	 
	 
	 	 	 	 	 	 
	Section 6.01.

	 	Payments
	 	 	56	 
	Section 6.02.

	 	Maintenance of Office or Agency
	 	 	57	 
	Section 6.03.

	 	Appointments to Fill Vacancies in Trustee’s Office
	 	 	57	 
	Section 6.04.

	 	Money for Security Payments to be Held in Trust
	 	 	57	 
	Section 6.05.

	 	Statement by Officers as to Default
	 	 	59	 
	Section 6.06.

	 	Existence
	 	 	59	 
	Section 6.07.

	 	Rule 144A Information Requirement
	 	 	59	 
	Section 6.08.

	 	Resale of Certain Securities
	 	 	59	 
	Section 6.09.

	 	Book-Entry System
	 	 	60	 
	Section 6.10.

	 	Additional Interest under the Registration Rights Agreement
	 	 	60	 
	Section 6.11.

	 	Stay, Extension and Usury Laws
	 	 	60	 
	Section 6.12.

	 	Information for IRS Filings
	 	 	60	 
	Section 6.13.

	 	Further Instruments and Acts
	 	 	60	 
	Section 6.14.

	 	Tax Treatment of the Securities
	 	 	60	 






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	 	 	 	 	Page
	 

	 	ARTICLE 7	 	 	 	 
	 

	 	Redemption	 	 	 	 
	 
	 	 	 	 	 	 
	Section 7.01.

	 	Right to Redeem; Notices to Trustee
	 	 	61	 
	Section 7.02.

	 	Selection of Securities to be Redeemed
	 	 	62	 
	Section 7.03.

	 	Notice of Redemption
	 	 	62	 
	Section 7.04.

	 	Effect of Notice of Redemption
	 	 	63	 
	Section 7.05.

	 	Deposit of Redemption Price
	 	 	64	 
	Section 7.06.

	 	Securities Redeemed in Part
	 	 	64	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 8	 	 	 	 
	 

	 	Fundamental Changes and Repurchases Thereupon	 	 	 	 
	 
	 	 	 	 	 	 
	Section 8.01.

	 	Repurchase at Option of Holders Upon a Fundamental Change
	 	 	64	 
	Section 8.02.

	 	Effect of Fundamental Change Repurchase Notice
	 	 	70	 
	Section 8.03.

	 	Withdrawal of Fundamental Change Repurchase Notice
	 	 	71	 
	Section 8.04.

	 	Deposit of Fundamental Change Repurchase Price
	 	 	71	 
	Section 8.05.

	 	Securities Repurchased in Whole or in Part
	 	 	72	 
	Section 8.06.

	 	Covenant to Comply With Securities Laws Upon Repurchase of Securities
	 	 	72	 
	Section 8.07.

	 	Repayment to the Company
	 	 	72	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 9	 	 	 	 
	 

	 	Conversion	 	 	 	 
	 
	 	 	 	 	 	 
	Section 9.01.

	 	Conversion Obligation
	 	 	72	 
	Section 9.02.

	 	Conversion Procedure
	 	 	74	 
	Section 9.03.

	 	Adjustment of Conversion Rate
	 	 	78	 
	Section 9.04.

	 	Shares to Be Fully Paid
	 	 	87	 
	Section 9.05.

	 	Conversion After a Public Acquiror Change of Control
	 	 	87	 
	Section 9.06.

	 	Effect of Reclassification, Consolidation, Merger or Sale
	 	 	88	 
	Section 9.07.

	 	Certain Covenants
	 	 	90	 
	Section 9.08.

	 	Responsibility of Trustee
	 	 	90	 
	Section 9.09.

	 	Notice to Holders Prior to Certain Actions
	 	 	91	 
	Section 9.10.

	 	Stockholder Rights Plans
	 	 	92	 
	Section 9.11.

	 	Alternate Conversion Arrangement
	 	 	92	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 10	 	 	 	 
	 

	 	Events of Default; Remedies	 	 	 	 
	 
	 	 	 	 	 	 
	Section 10.01.

	 	Events of Default
	 	 	92	 
	Section 10.02.

	 	Acceleration of Maturity; Rescission and Annulment
	 	 	94	 
	Section 10.03.

	 	Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	95	 






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	 	 	 	 	Page
	Section 10.04.

	 	Trustee May File Proofs of Claim
	 	 	95	 
	Section 10.05.

	 	Application of Money Collected
	 	 	96	 
	Section 10.06.

	 	Limitation on Suits
	 	 	96	 
	Section 10.07.

	 	Unconditional Right of Holders to Receive Payment
	 	 	97	 
	Section 10.08.

	 	Restoration of Rights and Remedies
	 	 	97	 
	Section 10.09.

	 	Rights and Remedies Cumulative
	 	 	97	 
	Section 10.10.

	 	Delay or Omission Not Waiver
	 	 	98	 
	Section 10.11.

	 	Control by Holders
	 	 	98	 
	Section 10.12.

	 	Waiver of Past Defaults
	 	 	98	 
	Section 10.13.

	 	Undertaking for Costs
	 	 	98	 
	Section 10.14.

	 	Waiver of Stay or Extension Laws
	 	 	99	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 11	 	 	 	 
	 

	 	Consolidation, Merger, Conveyance, Transfer Or Lease	 	 	 	 
	 
	 	 	 	 	 	 
	Section 11.01.

	 	Company May Consolidate, etc., Only on Certain Terms
	 	 	99	 
	Section 11.02.

	 	Successor Substituted
	 	 	100	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 12	 	 	 	 
	 

	 	The Trustee	 	 	 	 
	 
	 	 	 	 	 	 
	Section 12.01.

	 	Certain Duties and Responsibilities
	 	 	100	 
	Section 12.02.

	 	Notice of Defaults
	 	 	100	 
	Section 12.03.

	 	Certain Rights Of Trustee
	 	 	101	 
	Section 12.04.

	 	Not Responsible for Recitals
	 	 	103	 
	Section 12.05.

	 	May Hold Securities
	 	 	103	 
	Section 12.06.

	 	Money Held in Trust
	 	 	103	 
	Section 12.07.

	 	Compensation and Reimbursement
	 	 	103	 
	Section 12.08.

	 	Disqualification; Conflicting Interests
	 	 	104	 
	Section 12.09.

	 	Corporate Trustee Required; Eligibility
	 	 	104	 
	Section 12.10.

	 	Resignation and Removal; Appointment of Successor
	 	 	105	 
	Section 12.11.

	 	Acceptance of Appointment by Successor
	 	 	106	 
	Section 12.12.

	 	Merger, Conversion, Consolidation or Succession to Business
	 	 	106	 
	Section 12.13.

	 	Preferential Collection of Claims against the Company
	 	 	107	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 13	 	 	 	 
	 

	 	Holders’ Lists And Reports By Trustee	 	 	 	 
	 
	 	 	 	 	 	 
	Section 13.01.

	 	Company to Furnish Trustee Names and Addresses of Holders
	 	 	107	 
	Section 13.02.

	 	Preservation of Information; Communications to Holders
	 	 	107	 
	Section 13.03.

	 	Reports By Trustee
	 	 	108	 
	Section 13.04.

	 	Reports by Company
	 	 	108	 






iv









 






	 	 	 	 	 	 	 
	 	 	 	 	Page
	 

	 	ARTICLE 14	 	 	 	 
	 

	 	Satisfaction And Discharge	 	 	 	 
	 
	 	 	 	 	 	 
	Section 14.01.

	 	Satisfaction and Discharge of Indenture
	 	 	109	 
	Section 14.02.

	 	Application of Trust Money
	 	 	109	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 15	 	 	 	 
	 

	 	Supplemental Indentures	 	 	 	 
	 
	 	 	 	 	 	 
	Section 15.01.

	 	Supplemental Indentures Without Consent of Holders
	 	 	110	 
	Section 15.02.

	 	Supplemental Indentures With Consent of Holders
	 	 	111	 
	Section 15.03.

	 	Execution of Supplemental Indentures
	 	 	112	 
	Section 15.04.

	 	Effect of Supplemental Indentures
	 	 	112	 
	Section 15.05.

	 	Conformity with Trust Indenture Act
	 	 	112	 
	Section 15.06.

	 	Reference in Securities to Supplemental Indentures
	 	 	112	 






v









 






     INDENTURE, dated as of December 16, 2005, between Intel Corporation, a corporation duly
organized and existing under the laws of the State of Delaware, as Issuer (the “Company”), having
its principal office at 2200 Mission College Boulevard, Santa Clara, California 95054 and Citibank,
N.A., a national banking association, as Trustee (the “Trustee”).



RECITALS OF THE COMPANY




     WHEREAS, the Company has duly authorized the creation of an issue of 2.95% Junior Subordinated
Convertible Debentures due 2035 (each a “Security” and collectively, the “Securities”) of the tenor
and amount hereinafter set forth, and to provide therefor the Company has duly authorized the
execution and delivery of this Indenture; and



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



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



ARTICLE 1




     Definitions and Other Provisions of General Application



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




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




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




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



 









 






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



     “105% Exception” means, and shall be deemed applicable with respect to the definition of
“Fundamental Change” in, any event in which the Last Reported Sale Price of the Company’s Common
Stock for any 5 Trading Days within the 10 consecutive Trading Days ending immediately before the
date of any Change of Control Event or Termination of Trading or the public announcement thereof
equals or exceeds 105% of the applicable Conversion Price of the Securities immediately before such
event or the public announcement thereof.



     “Acquiror Securities” has the meaning specified in Section 8.01(d).



     “Act,” when used with respect to any Holder, has the meaning specified in Section 1.04.



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



     “Additional Shares” has the meaning specified in Section 9.01(b).



     “Adjustment Determination Date” has the meaning specified in Section 9.03(j).



     “Adjustment Event” has the meaning specified in Section 9.03(j).



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



     “Agent Members” has the meaning specified in Section 3.08.



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



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



     “Board Resolution” means, with respect to any Person, a copy of a resolution certified by the
Secretary or an Assistant Secretary of such Person to



2









 







have been duly adopted by the Board of
Directors and to be in full force and effect on the date of such certification, and delivered to
the Trustee.



     “Business Day” means any day other than a Saturday, a Sunday or a day on which banking
institutions in The City of New York are authorized or obligated by law, or executive order or
governmental decree to be closed.



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



     “Change of Control Event” shall mean the occurrence of any of the following:




          (i) a “person” or “group” within the meaning of Section 13(d) of the Exchange Act
other than the Company, its Subsidiaries or the Company’s or its Subsidiaries’ employee
benefit plans, files a Schedule TO or any schedule, form or report under the Exchange Act
disclosing that such person or group has become the direct or indirect ultimate
“beneficial owner,” as defined in Rule 13d-3 under the Exchange Act, of more than 50% of
the total voting power of all shares of the Company’s Capital Stock that are entitled to
vote generally in the election of directors;




          (ii) consummation of any share exchange, consolidation or merger of the Company
pursuant to which the Company’s Common Stock will be converted into cash, securities or
other property or any sale, lease or other transfer in one transaction or a series of
transactions of all or substantially all of the consolidated assets of the Company and its
Subsidiaries, taken as a whole, to any person other than the Company or one of its
Subsidiaries; provided, however, that a transaction where (1) the Company’s Common Stock
is not changed or exchanged at all except to the extent necessary to reflect a change in
the Company’s jurisdiction of incorporation or (2) the holders of more than 50% of all
classes of the Company’s Common Stock immediately prior to such transaction own, directly
or indirectly, more than 50% of the aggregate voting power of all shares of Capital Stock
of the continuing or surviving corporation or transferee immediately after such event
shall not be deemed a Change of Control Event; or




          (iii) Continuing Directors cease to constitute at least a majority of the Company’s
Board of Directors.



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



3









 





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



     “Common Stock” means the shares of common stock, par value $0.001 per share, of the Company as
they exist on the date of this Indenture or any other shares of Capital Stock of the Company into
which the Common Stock shall be reclassified or changed or, in the event of a merger, consolidation
or other similar transaction involving the Company that is otherwise permitted hereunder in which
the Company is not the surviving corporation, the common stock, common equity interests, ordinary
shares or depositary shares or other certificates representing common equity interests of such
surviving corporation or its direct or indirect parent corporation.



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



     “Company Request” or “Company Order” means a written request or order signed in the name of
the Company by its Chairman of the Board of Directors, its Vice Chairman of the Board of Directors,
its President or any Vice President, and by its Chief Financial Officer, its Treasurer, an
Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered to the Trustee.



     “Comparable Yield Rate” means 6.45%, compounded semi-annually.



     “Compounded Interest” has the meaning specified in Section 4.06(b).



     “Contingent Debt Regulations” has the meaning specified in Section 6.14.



     “Contingent Interest” has the meaning specified in Section 4.02(a).



     “Continuing Director” means, at any date, a member of the Company’s Board of Directors (i) who
was a member of such board on December 13, 2005, or (ii) became a director of the Company
subsequent to December 13, 2005, and whose election, appointment or nomination for election by the
holders of the Company’s Capital Stock was duly approved by a majority of the Continuing Directors
on the Board of Directors of the Company at the time of such approval, either by a specific vote or
by approval of the proxy statement issued by the Company on behalf of the entire Board of Directors
of the Company in which such individual was named as nominee for director.



4









 





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



     “Conversion Date” has the meaning specified in Section 9.02(e).



     “Conversion Obligation” has the meaning specified in Section 9.01(a).



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



     “Conversion Rate” has the meaning specified in Section 9.01(a).



     “Conversion Value” means, at any date, the product of (i) the Conversion Rate in effect on
such date and (ii) the average of the Volume-Weighted Average Prices of the Company’s Common Stock
for the five consecutive Trading Days ending on the Trading Day immediately preceding such date.



     “Corporate Trust Office” means the office of the Trustee at which the corporate trust business
of the Trustee shall, at any particular time, be principally administered, which office is, at the
date of this Indenture, located at 388 Greenwich Street, 14th Floor, New York, New York
10013, Attention: Agency & Trust, and shall mean for purposes of Section 6.02, 111 Wall Street,
15th Floor, New York, New York 10005, Attention: Floor Window.



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



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



     “Deferred Interest” means any Interest that is accrued and unpaid and the payment of which has
been deferred as a result of the Company’s declaration of an Extension Period.



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



     “Designated Senior Debt” means, with respect to the Company, obligations under any Senior Debt
in which the instrument creating or evidencing such Senior Debt or the assumption or guarantee
thereof (or related agreements or documents to which the Company is a party) expressly provides
that such Senior Debt shall be “Designated Senior Debt” for purposes of this Indenture. The
instrument, agreement or other document evidencing any Designated Senior Debt may place limitations
and conditions on the right of such Senior Debt to exercise the rights of Designated Senior Debt.



5









 





     “Distributed Property” has the meaning specified in Section 9.03(c).



     “Downside Trigger” means $800 per $1,000 Principal Amount of Securities during the period
prior to December 15, 2020. Beginning on December 15, 2020, and ending on December 15, 2034,
inclusive, the Downside Trigger will increase in increments of $10 per $1,000 Principal Amount of
Securities per year on December 15 of each year within such period. As an example, the Downside
Trigger will be $820 per $1,000 Principal Amount of Securities during the period commencing on
December 15, 2021, and ending on December 14, 2022.



     “Effective Date” has the meaning specified in Section 9.01(b).



     “Event of Default” has the meaning specified in Section 10.01.



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



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



     “Exchange Rate Contract” means, with respect to any Person, any currency swap agreement,
forward exchange rate agreement, foreign currency future or option, exchange rate collar agreement,
exchange rate insurance or other agreement or arrangement, or combination thereof, the principal
purpose of which is to provide protection against fluctuations in currency exchange rates. An
Exchange Rate Contract may also include an Interest Rate Agreement.



     “Extension Period” has the meaning specified in Section 4.06.



     “Extraordinary Dividend” has the meaning specified in Section 4.02(a).



     “Fundamental Change” means any transaction or event resulting in either a Change of Control
Event or a Termination of Trading; provided, however, that a Fundamental Change will not be deemed
to have occurred if either (i) the 105% Exception is applicable or (ii) not less than 90% of the
consideration, excluding cash payments for fractional shares and cash payments made in respect of
dissenter’s rights, associated with any of the events described in clauses (i) or (ii) of the
definition of “Change of Control Event” consists of Publicly Traded Securities and as a result of
such Change of Control Event the Securities become convertible into shares of such Publicly Traded
Securities.



     “Fundamental Change Company Notice” has the meaning specified in Section 8.01(b).



6









 





     “Fundamental Change Repurchase Date” has the meaning specified in Section 8.01(a).



     “Fundamental Change Repurchase Notice” has the meaning specified in Section 8.01(a).



     “Fundamental Change Repurchase Price” has the meaning specified in Section 8.01(a).



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



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



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



     “Indebtedness” means, with respect to any Person, without duplication, (i) any indebtedness or
obligation, whether contingent or not, (1) evidenced by a credit or loan agreement, note, bond,
debenture or similar written obligation or instrument (whether or not the recourse of the lender is
to the whole of the assets of such Person or to only a portion thereof) or (2) for money borrowed,
(ii) all obligations (1) as lessee under leases required to be capitalized on such Person’s balance
sheet under GAAP or (2) as lessee under other leases for facilities, capital equipment or related
assets, whether or not capitalized, entered into or leased for financing purposes, (iii) all
obligations under Interest Rate Agreements, Exchange Rate Contracts, treasury management agreements
or similar agreements or arrangements, (iv) all obligations and liabilities (contingent or
otherwise) of such Person with respect to letters of credit, bankers’ acceptances and similar
facilities (including reimbursement obligations with respect to the foregoing), (v) all obligations
and liabilities (contingent or otherwise) of such Person issued or assumed as the deferred purchase
price of any property or services (but excluding trade accounts payable and accrued liabilities
arising in the ordinary course of business), (vi) obligations of the type described in clauses (i)
through (v) above of any third party and all dividends of any third party payment of which, in
either case, such Person has assumed or guaranteed, or for which the Person first referenced above
is responsible or liable, directly or indirectly, jointly or severally, as obligor, guarantor or
otherwise, or that are secured by a lien on such Person’s property and (vii) any and all renewals,
extensions, modifications,



7









 







replacements, restatements and refundings of, or any indebtedness or obligation issued in
exchange for, any indebtedness, obligation or liability of the kinds described in clauses (i)
through (vi). The amount of any Indebtedness outstanding as of any date shall be the accreted
value thereof, in the case of any Indebtedness issued with original issue discount. The amount of
any Indebtedness outstanding as of any date with respect to any Exchange Rate Contract or Interest
Rate Agreement shall be the termination value thereof. Indebtedness shall not include liabilities
for taxes of any kind.



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



     “Initial Conversion Value” means $847.4569.



     “Initial Purchaser” means J.P. Morgan Securities Inc.



     “Interest” means (i) Regular Interest, (ii) Contingent Interest, if any, (iii) Additional
Interest, if any, and (iv) Compounded Interest, if any.



     “Interest Payment Date” means (i) with respect to any payment of Interest other than Interest
payable upon designation of an Extraordinary Dividend or a prepayment of Deferred Interest, each
June 15 and December 15 of each year, beginning June 15, 2006, (ii) with respect to Interest
payable upon designation of an Extraordinary Dividend, the date specified by the Company’s Board of
Directors for the payment of such Interest in accordance with Section 4.02(a)(ii) and (iii) with
respect to a prepayment of Deferred Interest, the date specified for such prepayment by the
Company.



     “Interest Rate Agreement” means, with respect to any Person, any interest rate swap agreement,
interest rate cap agreement, interest rate collar agreement or other similar agreement the
principal purpose of which is to protect the party indicated therein against fluctuations in
interest rates.



     “Investment Company Act” means the Investment Company Act of 1940 and any statutory successor
thereto, in each case as amended from time to time.



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



     “Last Reported Sale Price” of the Company’s Common Stock on any date means the closing sale
price per share (or if no closing sale price is reported,



8









 







the average of the bid and ask prices or, if more than one in either case, the average of the
average bid and the average ask prices) on that date as reported by The Nasdaq National Market or,
if the Company’s Common Stock is not quoted on The Nasdaq National Market, then on the principal
U.S. national or regional securities exchange on which the Company’s Common Stock is then listed.
If the Company’s Common Stock is not either quoted on The Nasdaq National Market or listed on any
U.S. national or regional securities exchange on the relevant date, the Last Reported Sale Price
will be the last quoted bid price for the Company’s Common Stock in the over-the-counter market on
the relevant date as reported by the National Quotation Bureau or similar organization. If the
Company’s Common Stock is not so quoted, the Last Reported Sale Price will be the average of the
mid-point of the last bid and ask prices for the Company’s Common Stock on the relevant date from
each of at least three nationally recognized independent investment banking firms selected by the
Company for this purpose, which shall in no case be Affiliates of the Company.



     “Majority Owned” means, with respect to an entity, that another entity has “beneficial
ownership” (as defined in Rule 13(d)(3) under the Exchange Act) of more than 50% of the total
voting power of all shares of the first entity’s Capital Stock that are entitled to vote generally
in the election of directors. “Majority Owner” has the correlative meaning.



     “Make-Whole Fundamental Change” means any event described in clause (ii) of the definition of
“Change of Control Event” that constitutes a Fundamental Change, determined without regard to the
105% Exception.



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



     “Merger Event” has the meaning specified in Section 9.06.



     “Non-Payment Default” has the meaning specified in Section 5.02(b).



     “Notice of Conversion” has the meaning specified in Section 9.02(d).



     “Notice of Default” has the meaning specified in Section 10.01.



     “Officers’ Certificate” means a certificate signed by the Chairman of the Board, the President
or any Vice President, and by the Treasurer, an Assistant Treasurer, the Secretary or an Assistant
Secretary, of the Company, and delivered to the Trustee. One of the officers signing an Officers’
Certificate given pursuant



9









 







to Section 6.05 shall be the principal executive, financial or accounting officer of the
Company.



     “Opinion of Counsel” means a written opinion of counsel, who may be external or in-house
counsel for the Company, and who shall be reasonably acceptable to the Trustee.



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




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




          (ii) Securities, or portions thereof, for whose payment, redemption or repurchase
money in the necessary amount has been theretofore deposited with the Trustee or any
Paying Agent (other than the Company) in trust or set aside and segregated in trust by the
Company (if the Company shall act as its own Paying Agent) for the Holders of such
Securities; provided that if such Securities are to be redeemed or repurchased prior to
the maturity thereof, notice of such redemption or repurchase shall have been given to the
Holders as herein provided, or provision satisfactory to a Responsible Officer of the
Trustee shall have been made for giving such notice; and




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


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




10









 








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



     “Payment Blockage Notice” has the meaning specified in Section 5.02(b).



     “Payment Default” has the meaning specified in Section 5.02(a).



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



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



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



     “Public Acquiror Change of Control” means a Fundamental Change in which the acquiror has
Public Acquiror Common Stock.



     “Public Acquiror Common Stock” means, in reference to a Fundamental Change, any class of
common stock of the acquiror in respect of such Fundamental Change that is traded on any U.S.
national securities exchange or quoted on The Nasdaq National Market or which will be so traded or
quoted when issued or exchanged in connection with such Fundamental Change. If an acquiror does
not itself have a class of common stock satisfying the foregoing requirement, it shall be deemed to
have Public Acquiror Common Stock if a corporation that directly or indirectly is the Majority
Owner of the acquiror has a class of common stock satisfying the foregoing requirement; in such
case, all references to Public Acquiror Common Stock shall refer to such class of common stock.



     “Publicly Traded Securities” means shares of Capital Stock that are traded on a U.S. national
securities exchange or quoted on The Nasdaq National Market or, with respect to a Change of Control
Event, which will be so traded or quoted when issued or exchanged in connection with such event.



     “Purchase Agreement” means the Purchase Agreement, dated December 13, 2005, entered into by
the Company and the Initial Purchaser in connection with the sale of the Securities.



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



11









 





     “Record Date” means (i) with respect to any payment of Interest other than Interest payable
upon designation of an Extraordinary Dividend or a prepayment of Deferred Interest, each June 1 and
December 1 (whether or not a Business Day), (ii) with respect to the payment of Interest payable
upon designation of an Extraordinary Dividend, the record date specified by the Company’s Board of
Directors for the payment of such Interest in accordance with Section 4.02(a)(ii) and (iii) with
respect to a prepayment of Deferred Interest, the record date specified with respect to such
prepayment by the Company.



     “Regular Interest” has the meaning specified in Section 4.01(a).



     “Redemption Date” shall mean the date specified for redemption of the Securities in accordance
with the terms of the Securities and Article 7 hereof.



     “Redemption Price” has the meaning specified in Section 7.01.



     “Reference Property” has the meaning specified in Section 9.06(b).



     “Registration Rights Agreement” means the Registration Rights Agreement, dated as of December
16, 2005, between the Company and the Initial Purchaser, for the benefit of itself and the Holders,
as the same may be amended or modified from time to time in accordance with the terms thereof.



     “Representative” means the (i) indenture trustee or other trustee, agent or representative for
any Senior Debt or (ii) with respect to any Senior Debt that does not have any such trustee, agent
or other representative, (1) in the case of such Senior Debt issued pursuant to an agreement
providing for voting arrangements as among the holders or owners of such Senior Debt, any holder or
owner of such Senior Debt acting with the consent of the required Persons necessary to bind such
holders or owners of such Senior Debt and (2) in the case of all other such Senior Debt, the holder
or owner of such Senior Debt.



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



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



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



12









 





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



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



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



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



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



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



     “Security Register” and “Security Registrar” have the respective meanings specified in Section
3.05.



     “Senior Debt” means, with respect to the Company, means the principal of (and premium, if any)
and interest (including all interest accruing subsequent to the commencement of any bankruptcy or
similar proceeding, whether or not a claim for post-petition interest is allowable as a claim in
any such proceeding) on, and all fees and other amounts payable in connection with, any
Indebtedness of the Company, whether absolute or contingent, secured or unsecured, due or to become
due, outstanding on the date of this Indenture or thereafter created, incurred, assumed or
guaranteed by the Company. Notwithstanding the foregoing, the term Senior Debt shall not include
(i) the Securities, (ii) any Indebtedness, created, evidenced, assumed or guaranteed by an
instrument that expressly provides that such Indebtedness shall not be senior in right of payment
to the Securities or expressly provides that such Indebtedness is “pari passu” or “junior” to the
Securities, (iii) any Indebtedness of the Company to any Subsidiary of the Company or (iv) any
Indebtedness of or amounts owed by the Company for trade payables or otherwise for goods or
materials purchased or services obtained in the ordinary course of business.



     “Spin-Off” has the meaning specified in Section 9.03(c).



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



     “Stock Price” means, with respect to the Company’s Common Stock in connection with a
Make-Whole Fundamental Change, (i) if holders of Common



13









 








Stock receive only cash in such Make-Whole Fundamental Change, the cash amount paid per share
of Common Stock and (ii) if holders of Common Stock receive any consideration other than cash in
such Make-Whole Fundamental Change, the average of the Last Reported Sales Price of the Common
Stock over the five Trading Days ending on the Trading Date preceding the effective date of such
Make-Whole Fundamental Change.



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



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



     “Surviving Entity” has the meaning specified in Section 11.01.



     “Tax Triggering Event” means the enactment of U.S. federal legislation, promulgation of
Treasury regulations, issuance of a published ruling, notice, announcement or equivalent form of
guidance by the Treasury or the Internal Revenue Service, or the issuance of a judicial decision if
the Company determines, or receives an opinion of its outside counsel to the effect that, any such
authority will have the effect of lowering the comparable yield or delaying or otherwise limiting
the current deductibility of interest or original issue discount with respect to the Securities,
provided that the Company determines that such reduction, delay, or limit is material.



     “Termination
of Trading” means that the Company’s Common Stock or other common stock into
which the Securities are convertible is neither listed for trading on a United States national
securities exchange nor approved for listing on The NASDAQ National Market or any similar United
States system of automated dissemination of quotations of securities prices.



     “Trading Day” means (i) if the applicable security is quoted on The Nasdaq National Market or
Nasdaq SmallCap Market, a day on which trades may be made on thereon, (ii) if the applicable
security is listed or admitted for trading on the New York Stock Exchange or another United States
national security exchange, a day on which the New York Stock Exchange or such other national
security exchange is open for business or (iii) if the applicable security is not so listed,
admitted for trading or quoted, any Business Day.



14









 





     “Trading Price” of the Securities on any date of determination means the average of the
secondary market bid quotations per $1,000 Principal Amount of Securities obtained by the Trustee
for $5,000,000 Principal Amount of Securities at approximately 3:30 p.m., New York City time, on
such determination date from three Bid Solicitation Agents that are selected by the Company;
provided that if at least three such bids cannot reasonably be obtained by the Trustee, but two
such bids can reasonably be obtained, then the average of the two bids shall be used, and if only
one such bid can reasonably be obtained, that one bid shall be used. If the Trustee cannot
reasonably obtain at least one such bid for $5,000,000 Principal Amount of Securities from a Bid
Solicitation Agent selected by the Company or, in the reasonable judgment of the Company’s Board of
Directors (acting through the board or a committee thereof), the bid quotations are not indicative
of the secondary market value of the Securities, the Trading Price per $1,000 Principal Amount of
the Securities will be determined by the Company’s Board of Directors (acting through the board or
a committee thereof) based on a good faith estimate of the fair value of the Securities.



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



     “Trigger Event” has the meaning specified in Section 9.03(c).



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



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



     “Upside Trigger” means $1,300 per $1,000 Principal Amount of Securities.



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



     “Volume-Weighted Average Price” means, with respect to the Company’s Common Stock on a Trading
Day, the price displayed under the heading “Bloomberg VWAP” on Bloomberg (or any successor service)
page INTC <equity> AQR (or any successor page) in respect of the period from 9:30 a.m. to
4:00 p.m. New York City time on that Trading Day, or, if such price is not



15









 







available, the volume-weighted average price per share of the Company’s Common Stock on that
Trading Day as determined by a nationally recognized independent investment banking firm retained
for this purpose by the Company.



     Section 1.02. Compliance Certificates and Opinions. Upon any application or request by the
Company to the Trustee to take any action under any provision of this Indenture, the Company shall
furnish to the Trustee such certificates and opinions as may be required under the Trust Indenture
Act. Each such certificate or opinion shall be given in the form of an Officers’ Certificate, if
to be given by an officer of the Company, or an Opinion of Counsel, if to be given by counsel, and
shall comply with the requirements of the Trust Indenture Act and any other requirement set forth
in this Indenture.



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



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



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



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



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



     Section 1.03. Form of Documents Delivered to Trustee. In any case where several matters are
required to be certified by, or covered by an opinion of, any specified Person, it is not necessary
that all such matters be certified by, or covered by the opinion of, only one such Person, or that
they be so certified or covered by only one document, but one such Person may certify or give an
opinion with respect to some matters and one or more other such Persons as to other matters, and
any such Person may certify or give an opinion as to such matters in one or several documents.



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



16









 







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



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



     Section 1.04. Acts of Holders; Record Dates. (a) Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture to be given or taken
by Holders may be embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Holders in person or by agent duly appointed in writing and, except as herein
otherwise expressly provided, such action shall become effective when such instrument or
instruments are delivered to the Trustee and, where it is hereby expressly required, to the
Company. Such instrument or instruments (and the action embodied therein and evidenced thereby)
are herein sometimes referred to as an “Act” of the Holders signing such instrument or instruments.
Proof of execution of any such instrument or of a writing appointing any such agent shall be
sufficient for any purpose of this Indenture and (subject to Section 12.01) conclusive in favor of
the Trustee and the Company, if made in the manner provided in this Section.



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



     (c) The Company may, in the circumstances permitted by the Trust Indenture Act, fix any day as
the record date for the purpose of determining the Holders entitled to give or take any request,
demand, authorization, direction, notice, consent, waiver or other action, or to vote on any
action, authorized or permitted to be given or taken by Holders. If not set by the Company prior
to the first solicitation of a Holder made by any Person in respect of any such action, or, in the
case of any such vote, prior to such vote, the record date for any such action



17









 







or vote shall be the 30th day (or, if later, the date of the most recent list of Holders
required to be provided pursuant to Section 13.01) prior to such first solicitation or vote, as the
case may be. With regard to any record date, only the Holders on such date (or their duly
designated proxies) shall be entitled to give or take, or vote on, the relevant action.



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



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



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




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




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



     Section 1.06.
Notice to Holders; Waiver. Where this Indenture provides for notice to
Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly
provided) if in writing and mailed, first-class postage prepaid, to each Holder affected by such
event, at such Holder’s address as it appears in the Security Register, not later than the latest
date (if any), and not earlier than the earliest date (if any), prescribed for the giving of such
notice. In any case where notice to Holders is given by mail, neither the failure to mail such
notice, nor any defect in any notice so mailed, to any particular Holder shall affect the
sufficiency of such notice with respect to other Holders. Where this Indenture provides for notice
in any manner, such notice may be waived in writing by the Person entitled to receive such notice,
either before or after the event, and such waiver shall be the equivalent of such notice. Waivers
of notice by Holders shall



18









 







be filed with the Trustee, but such filing shall not be a condition precedent to the validity
of any action taken in reliance upon such waiver.



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



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



     Section 1.07.
Conflict with Trust Indenture Act. If any provision hereof limits, qualifies
or conflicts with a provision of the Trust Indenture Act that is required hereunder to be a part of
and govern this Indenture, the latter provision shall control. If any provision of this Indenture
modifies or excludes any provision of the Trust Indenture Act that may be so modified or excluded,
the latter provision shall be deemed to apply to this Indenture as so modified or to be excluded,
as the case may be.



     Section 1.08. Effect of Headings and Table of Contents. The Article and Section headings
herein and the Table of Contents are for convenience only and shall not affect the construction
hereof, and all Article and Section references are to Articles and Sections, respectively, of this
Indenture unless otherwise expressly stated.



     Section 1.09. Successors and Assigns. All covenants and agreements in this Indenture by the
Company shall bind its successors and assigns, whether so expressed or not.



     Section 1.10.
Severability Clause. In case any provision in this Indenture or in the
Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.



     Section 1.11.
Benefits of Indenture. Nothing in this Indenture or in the Securities,
express or implied, shall give to any Person, other than the parties hereto and their respective
successors hereunder and the Holders of Securities, any benefit or any legal or equitable right,
remedy or claim under this Indenture.



     Section 1.12. Governing Law. This Indenture and the Securities shall be governed by and
construed in accordance with the laws of the State of New York.



     Section 1.13.
Legal Holiday. In any case where the Stated Maturity of any Security shall
not be a Business Day, then (notwithstanding any other



19









 







provision of this Indenture or of the Securities) payment of principal need not be made on
such date, but may be made on the next succeeding Business Day with the same force and effect as if
made on at the Stated Maturity.



     Section 1.14. No Recourse Against Others. None of the Company’s, or of any successor
entity’s, direct or indirect stockholders, employees, officers or directors, as such, past, present
or future, shall have any personal liability in respect of the obligations of the Company under the
Indenture or the Securities solely by reason of his or its status as such stockholder, employee,
officer or director.



ARTICLE 2

Security Forms




     Section 2.01.
Forms Generally. The Securities and the Trustee’s certificates of
authentication shall be in substantially the forms set forth in this Article, with such appropriate
insertions, omissions, substitutions and other variations as are required or permitted by this
Indenture, and may have such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with the rules of any securities exchange
or Depositary therefor, the Code and regulations thereunder, or as may, consistently herewith, be
determined by the officers executing such Securities, as evidenced by their execution thereof.



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



     Section 2.02. Form of Face of Security. [INCLUDE IF SECURITY IS A RESTRICTED SECURITY —
THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE
FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER AGREES (1) THAT IT WILL NOT WITHIN THE
LATER OF (X) TWO YEARS AFTER THE LATEST ISSUE DATE OF THIS SECURITY AND (Y) THREE MONTHS AFTER IT
CEASES TO BE AN AFFILIATE (WITHIN THE MEANING OF RULE 144 UNDER THE SECURITIES ACT) OF THE ISSUER,
RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY OR THE COMMON STOCK ISSUABLE UPON
CONVERSION OF



20









 







SUCH SECURITY, EXCEPT (A) TO THE ISSUER; (B) UNDER A REGISTRATION STATEMENT THAT HAS BEEN
DECLARED EFFECTIVE UNDER THE SECURITIES ACT; (C) TO A PERSON THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) THAT IS PURCHASING
FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER QUALIFIED INSTITUTIONAL BUYER AND TO WHOM NOTICE
IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, ALL IN COMPLIANCE WITH RULE 144A
(IF AVAILABLE); OR (D) UNDER ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT; AND (2) THAT IT WILL, PRIOR TO ANY TRANSFER OF THIS SECURITY WITHIN THE LATER
OF (X) TWO YEARS AFTER THE LATEST ISSUE DATE OF THIS SECURITY AND (Y) THREE MONTHS AFTER IT CEASES
TO BE AN AFFILIATE (WITHIN THE MEANING OF RULE 144 ADOPTED UNDER THE SECURITIES ACT) OF THE ISSUER,
FURNISH TO THE TRUSTEE AND THE ISSUER SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS
MAY BE REQUIRED PURSUANT TO THE INDENTURE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO
AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT.]



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



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



21









 







PERSON IS WRONGFUL IN AS MUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]



     [INCLUDE IF THE SECURITY IS NOT REGISTERED — THIS SECURITY WAS ISSUED WITH ORIGINAL ISSUE
DISCOUNT FOR UNITED STATES FEDERAL INCOME TAX PURPOSES. PURSUANT TO SECTION 6.14 OF THE INDENTURE,
THE COMPANY AGREES, AND BY ACCEPTANCE OF A BENEFICIAL OWNERSHIP INTEREST IN THE SECURITIES EACH
BENEFICIAL HOLDER OF A SECURITY AGREES, FOR UNITED STATES FEDERAL INCOME TAX PURPOSES, (I) TO TREAT
THE SECURITIES AS INDEBTEDNESS OF THE COMPANY SUBJECT TO UNITED STATES TREASURY REGULATIONS SECTION
1.1275-4 (THE “CONTINGENT DEBT REGULATIONS”) AND, FOR PURPOSES OF THE CONTINGENT DEBT REGULATIONS,
TO TREAT THE FAIR MARKET VALUE OF ANY COMMON STOCK BENEFICIALLY RECEIVED UPON CONVERSION AS A
CONTINGENT PAYMENT, (II) TO BE BOUND BY THE COMPANY’S DETERMINATION OF THE “COMPARABLE YIELD” AND
“PROJECTED PAYMENT SCHEDULE,” WITHIN THE MEANING OF THE CONTINGENT DEBT REGULATIONS, WITH RESPECT
TO SUCH HOLDER’S SECURITIES AND (III) TO USE SUCH “COMPARABLE YIELD” AND “PROJECTED PAYMENT
SCHEDULE” IN DETERMINING INTEREST ACCRUALS WITH RESPECT TO SUCH HOLDER’S SECURITIES AND IN
DETERMINING ADJUSTMENTS THERETO. A HOLDER OF SECURITIES MAY OBTAIN THE ISSUE DATE, YIELD TO
MATURITY, COMPARABLE YIELD AND THE PROJECTED PAYMENT SCHEDULE BY SUBMITTING A WRITTEN REQUEST FOR
SUCH INFORMATION TO: INTEL CORPORATION, 2200 MISSION COLLEGE BLVD., M/S SC4-203, SANTA CLARA, CA
95052-8119, ATTENTION: CORPORATE SECRETARY, WITH A COPY TO: INTEL CORPORATION, 2200 MISSION
COLLEGE BLVD.,
 M/S RN6-46, SANTA CLARA, CA 95052-8119, ATTENTION: TREASURER.]




22









 






2.95% Junior Convertible Subordinated Debentures due 2035




	 	 	 	 	 
	No.                     

	 	CUSIP NO. 458140 AC 4
	 	U.S. $                                        






     Intel Corporation, a corporation duly organized and validly existing under the laws of the
State of Delaware (herein called the “Company”), which term includes any successor corporation
under the Indenture referred to on the reverse hereof), for value received hereby promises to pay
to Cede & Co., or registered assigns, the principal sum of One Billion Four Hundred Million United
States Dollars ($1,600,000,000) (which amount may from time to time be increased or decreased by
adjustments made on the records of the Trustee, as custodian for the Depositary, in accordance with
the rules and procedures of the Depositary) on December 15, 2035. Payment of the principal of this
Security shall be made by check mailed to the address of the Holder of this Security specified in
the register of Securities, or, at the option of the Company, by wire transfer in immediately
available funds, in such lawful money of the United States of America as at the time of payment
shall be legal tender for the payment of public and private debts.



     The issue date of this Security is December 16, 2005.



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



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



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



23









 





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



	 	 	 	 	 
	 	INTEL CORPORATION

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 



24









 






	 	 	 	 	 




     Section 2.03. Form of Reverse of Security.



INTEL CORPORATION



2.95% Junior Subordinated Convertible Debentures due 2035




     This Security is one of a duly authorized issue of Securities of the Company, designated as
its 2.95% Junior Convertible Subordinated Debentures due 2035 (the “Securities”), all issued or to
be issued under and pursuant to an Indenture dated as of December 16, 2005 (the “Indenture”),
between the Company and Citibank, N.A. (the “Trustee”), to which Indenture and all indentures
supplemental thereto reference is hereby made for a description of the rights, limitations of
rights, obligations, duties and immunities thereunder of the Trustee, the Company and the Holders
of the Securities.



     Interest. The Securities will bear Regular Interest at a rate of 2.95% per year,
payable semi-annually in arrears on June 15 and December 15 of each year beginning on June 15,
2006. In addition to Regular Interest, the Securities will also bear Contingent Interest (i)
commencing on December 15, 2010, during any semi-annual interest period in which the average
trading price of the Securities for the 10 Trading Day period immediately preceding the first day
of such semi-annual period is greater than or equal to $1,300 per $1,000 Principal Amount of the
Securities, at a rate of 0.40% of such trading price per annum, (ii) commencing on December 15,
2010, during any semi-annual interest period in which the average trading price of the Securities
for the 10 Trading Day period immediately preceding the first day of such semi-annual period is
less than or equal to a threshold that will initially be set at $800 per $1,000 Principal Amount of
the Securities and that will increase over time in accordance with the Indenture, at a rate of
0.25% of such trading price per annum and (iii) at any time that Securities are outstanding in the
event that the Company pays an extraordinary cash dividend or distribution to holders of the
Company’s Common Stock that the Company’s Board of Directors designates as payable to Holders of
the Securities.



     So long as the Company is not in Default in the payment of Interest on the Securities, the
Company may defer the payment of Interest on the Securities (other than Contingent Interest
relating to an Extraordinary Dividend) for a period not to exceed 10 consecutive semi-annual
interest payment periods, during which time Compounded Interest will accrue as provided in the
Indenture.



     Subordination. The Securities are unsecured junior obligations of the Company
subordinated in right of payment to the Company’s existing and future Senior Debt and effectively
subordinated in right of payment to all indebtedness and other liabilities of the Company’s
subsidiaries.



25









 





     Redemption at the Option of the Company. No sinking fund is provided for the
Securities. The Securities are redeemable as a whole, or from time to time in part, (i) at any
time commencing on December 15, 2012 at the option of the Company if the Last Reported Sale Price
of the Company’s Common Stock has been greater than or equal to 130% of Conversion Price then in
effect for at least 20 Trading Days during any 30 consecutive Trading Day period prior to the date
on which the Company provides notice of redemption and (ii) on or prior to June 12, 2006, if
certain U.S. federal tax legislation, regulations or rules are enacted or are issued. The
redemption price (the “Redemption Price”) for any such redemption is equal to (a) in the case of a
redemption described in clause (i) above, 100%, expressed as a percentage of the Principal Amount
of Securities to be redeemed, together with accrued and unpaid Interest to, but excluding, the
Redemption Date and (b) in the case of a redemption described in clause (ii) above, 101.5%,
expressed as a percentage of the Principal Amount of Securities to be redeemed, together with
accrued and unpaid Interest to, but excluding, the Redemption Date and, if the Conversion Value of
the Securities being redeemed exceeds their Initial Conversion Value, 77% of the amount determined
by subtracting the Initial Conversion Value of the Securities being redeemed from their Conversion
Value.



     Repurchase by the Company at the Option of the Holder Upon a Fundamental Change.
Subject to the terms and conditions of the Indenture, the Company shall become obligated, at the
option of the Holder, to repurchase the Securities if a Fundamental Change occurs at any time prior
to the Stated Maturity at 100% of the Principal Amount plus accrued and unpaid Interest to, but
excluding, the Fundamental Change Repurchase Date (the “Fundamental Change Repurchase Price”),
which Fundamental Change Repurchase Price will be paid in cash; provided that the Company may
elect, subject to the satisfaction of certain conditions described in the Indenture, to pay all or
a portion of the Fundamental Change Repurchase Price in Common Stock, Acquiror Securities or a
combination thereof. The number of shares of Common Stock or Acquiror Securities that a Holder
will receive will equal the quotient obtained by dividing (i) the portion of the Fundamental Change
Repurchase Price to be paid in shares of Common Stock or Acquiror Securities, as applicable, by
(ii) 95% of the average Closing Price of the shares of Common Stock or Acquiror Securities, as
applicable, for the five Trading Day period immediately preceding and including the third Trading
Day immediately preceding the Fundamental Change Repurchase Date, subject to adjustment as
described in the Indenture.



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



26









 





     Payment of Redemption Price, Repurchase Price and Fundamental Change Repurchase Price.
If cash or, if permitted under the Indenture, Common Stock,
Acquiror Securities or any combination of the foregoing, sufficient to pay the Redemption
Price or Fundamental Change Repurchase Price, as the case may be, of all Securities or portions
thereof to be redeemed or repurchased on a Redemption Date or on a Fundamental Change Repurchase
Date, as the case may be, is deposited with the Paying Agent on the Redemption Date or the
Fundamental Change Repurchase Date, as the case may be, such Securities will cease to be
outstanding and Interest will cease to accrue on such Securities (or portions thereof) immediately
after such Redemption Date or Fundamental Change Repurchase Date, as the case may be, and the
Holder thereof shall have no other rights as such (other than the right to receive the Redemption
Price or Fundamental Change Repurchase Price, as the case may be, upon surrender of such Security).



     Conversion. A Holder may convert each of its Securities into shares of the Company’s
common stock at an initial conversion rate of 31.7162 shares per $1,000 Principal Amount of
Securities (the “Conversion Rate”), at any time prior to the close of business on December 14,
2035; provided, that the Company may elect to deliver cash equal to (i) the average of the Last
Reported Sale Price for the Company’s Common Stock for the five consecutive Trading Days
immediately following the date on which the Company gives notice of such election or, if the
Company has delivered a notice of redemption, the Conversion Date, multiplied by (ii) the number of
shares of Common Stock issuable upon conversion of such Securities on the Conversion Date. The
Conversion Rate in effect at any given time is subject to adjustment as provided in the Indenture.
A Holder may convert fewer than all of such Holder’s Securities so long as the Securities converted
are an integral multiple of $1,000 principal amount. Except as otherwise provided in the
Indenture, Holders will not receive any cash payment representing accrued and unpaid Interest upon
conversion of a Security. Accrued and unpaid Interest will be deemed paid in full rather than
canceled, extinguished or forfeited.



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



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



27









 







extent required to permit compliance by any such Holder with Rule 144A under the Securities Act of 1933, as amended
(the “Securities Act”). “Rule 144A Information” shall be such information as is specified pursuant
to Rule 144A(d)(4) under the Securities Act (or any successor provision thereto).



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



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



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



     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the Principal Amount, Redemption Price or



28









 







Fundamental Change Repurchase Price of, and Interest on,
this Security at the times, place and rate, and in the coin or currency, herein prescribed.



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



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



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



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



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



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




29









 








ASSIGNMENT FORM




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



     I or we assign and transfer this Security to:


                                                                                                                                                                                    



                                                                                                                                                                                    



                                                                                                                                                                                    




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




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



Date:                                                                             Signed:                                                             



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



Signature Guarantee:
  
                                                                         
                                             


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




30









 








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



[Check One]




	 	 	 
	(1) o

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

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

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





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




     If none of the foregoing boxes is checked, the Trustee or Security Registrar shall not be
obligated to register this Security in the name of any Person other than the Holder hereof unless
and until the conditions to any such transfer of registration set forth herein and in Section 3.09
of the Indenture shall have been satisfied.



     Date:                                                         Signed:                                                             



31









 





	 	 	 
	 

	 	(Sign exactly as your name appears on the
	 

	 	other side of this Security)






     Signature Guarantee:                                                                                 


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




32









 








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




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



     Date:                                                                            Signed:                                                                                 



     NOTICE: To be executed by an executive officer.



33









 





CONVERSION NOTICE




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



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



     $                                                                                                     



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



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

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







     Date:                                                              Signed:                                                                                 



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



     Signature Guarantee:                                                                                                                         


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





34









 








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



	 	 	 	 	 	 	 	 	 
	Dated:	 	 	 	 	 	Citibank, N.A., as Trustee
	 

	 	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	By	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Authorized Signatory






     Section 2.05. Legend on Restricted Securities. During the period beginning on the Issue
Date and ending on the date two years from such date, any Security, including any Security issued
in exchange therefor or in lieu thereof, shall be deemed a “Restricted Security” and shall be
subject to the restrictions on transfer provided in the legends set forth on the face of the form
of Security in Section 2.02; provided, however, that the term “Restricted Security” shall not
include any Securities as to which restrictions have been terminated in accordance with Section
3.05. All Securities shall bear the applicable legends set forth on the face of the form of
Security in Section 2.02. Except as provided in Section 3.05 and Section 3.09, the Trustee shall
not issue any unlegended Security until it has received an Officers’ Certificate from the Company
directing it to do so.



ARTICLE
3

The Securities




     Section 3.01. Title and Terms; Payments. The aggregate Principal Amount of Securities that
may be authenticated and delivered under this Indenture is initially limited to $1,600,000,000,
except for Securities authenticated and delivered upon registration or transfer of, or in exchange
for, or in lieu of, other Securities pursuant to Section 3.04, 3.05, 3.06, 7.06, 8.05 or 15.06.



     The Securities shall be known and designated as the “2.95% Junior Subordinated Convertible
Debentures due 2035” of the Company. The Principal Amount shall be payable at the Stated Maturity.



     The Securities shall not have the benefit of a sinking fund.



     The Securities shall be subordinated to all Senior Debt of the Company.



     The Principal Amount of and Interest on Global Securities registered in the name of The
Depository Trust Company or its nominee shall be paid by wire



35









 







transfer in immediately available funds to The Depository Trust Company or its nominee, as
applicable.



     The Principal Amount of Physical Securities shall be payable at the office or agency of the
Company in The City of New York maintained for such purpose and at any other office or agency
maintained by the Company for such purpose. Interest on Physical Securities will be payable (i) to
Holders having an aggregate Principal Amount of $2,000,000 or less of Securities, by check mailed
to such Holders and (ii) to Holders having an aggregate Principal Amount of more than $2,000,000 of
Securities, either by check mailed to such Holders or, upon application by a Holder to the Security
Registrar not later than the relevant Record Date for such Interest payment, by wire transfer in
immediately available funds to such Holder’s account within the United States, which application
shall remain in effect until the Holder notifies the Security Registrar to the contrary in writing.



     Section 3.02. Denominations. The Securities shall be issuable only in registered form
without coupons and in denominations of $1,000 and any integral multiple of $1,000 above that
amount.



     Section 3.03. Execution, Authentication, Delivery and Dating. The Securities shall be
executed on behalf of the Company by its Chairman of the Board of Directors, its President or one
of its Vice Presidents.



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



     At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities executed by the Company to the Trustee for authentication, together
with a Company Order for the authentication and delivery of such Securities. The Company Order
shall specify the amount of Securities to be authenticated, and shall further specify the amount of
such Securities to be issued as a Global Security or as Physical Securities. The Trustee in
accordance with such Company Order shall authenticate and deliver such Securities as in this
Indenture provided and not otherwise.



     Each Security shall be dated the date of its authentication.



     No Security shall be entitled to any benefit under this Indenture or be valid or obligatory
for any purpose unless there appears on such Security a certificate of authentication substantially
in the form provided for herein executed by the Trustee by manual signature, and such certificate
upon any Security shall be



36









 







conclusive evidence, and the only evidence, that such Security has been duly authenticated and
delivered hereunder.



     Section 3.04. Temporary Securities. Pending the preparation of definitive Securities, the
Company may execute, and upon Company Order the Trustee shall authenticate and deliver, temporary
Securities that are printed, lithographed, typewritten, mimeographed or otherwise produced, in any
authorized denomination, substantially of the tenor of the definitive Securities in lieu of which
they are issued and with such appropriate insertions, omissions, substitutions and other variations
as the officers executing such Securities may determine, as evidenced by their execution of such
Securities; provided, that any such temporary Securities shall bear legends on the face of such
Securities as set forth in Section 2.02.



     If temporary Securities are issued, the Company will cause definitive Securities to be
prepared without unreasonable delay. After the preparation of definitive Securities, the temporary
Securities shall be exchangeable for definitive Securities upon surrender of the temporary
Securities at any office or agency of the Company designated pursuant to Section 6.02, without
charge to the Holder. Upon surrender for cancellation of any one or more temporary Securities, the
Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a like
Principal Amount of Physical Securities of authorized denominations. Until so exchanged, the
temporary Securities shall in all respects be entitled to the same benefits under this Indenture as
Physical Securities.



     Section 3.05. Registration; Registration of Transfer and Exchange; Restrictions on Transfer.
(a) The Company shall cause to be kept at the applicable Corporate Trust Office of the Trustee a
register (the register maintained in such office and in any other office or agency designated
pursuant to Section 6.02 being herein sometimes collectively referred to as the “Security
Register”) in which, subject to such reasonable regulations as it may prescribe, the Company shall
provide for the registration of Securities and of transfers of Securities. The Trustee is hereby
appointed “Security Registrar” (the “Security Registrar”) for the purpose of registering Securities
and transfers of Securities as herein provided.



     Upon surrender for registration of transfer of any Security at an office or agency of the
Company designated pursuant to Section 6.02 for such purpose, the Company shall execute, and the
Trustee shall authenticate and deliver, in the name of the designated transferee or transferees,
one or more new Securities of any authorized denominations and of a like aggregate Principal Amount
and tenor, each such Security bearing such restrictive legends as may be required by this Indenture
(including Sections 2.02, 2.05 and 3.09).



37









 





     At the option of the Holder and subject to the other provisions of this Section 3.05 and to
Section 3.09, Securities may be exchanged for other Securities of any authorized denominations and
of a like aggregate Principal Amount and tenor, upon surrender of the Securities to be exchanged at
such office or agency. Whenever any Securities are so surrendered for exchange, the Company shall
execute, and the Trustee shall authenticate and deliver, the Securities which the Holder making the
exchange is entitled to receive.



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



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



     Except as provided in the following sentence and in Section 3.09, all Securities originally
issued hereunder and all Securities issued upon registration of transfer or exchange or replacement
thereof shall be Restricted Securities and shall bear the legends required by Sections 2.02 and
2.05, unless the Company shall have delivered to the Trustee (and the Security Registrar, if other
than the Trustee) a Company Order stating that the Security is not a Restricted Security and may be
issued without such legend thereon. Securities that are issued upon registration of transfer of,
or in exchange for, Securities that are not Restricted Securities shall not be Restricted
Securities and shall not bear such legend.



     No service charge shall be made for any registration of transfer or exchange of Securities,
but the Company and the Security Registrar may require payment of a sum sufficient to cover any tax
or other governmental charge that may be imposed in connection with any registration of transfer or
exchange of Securities, other than exchanges pursuant to Section 3.04 not involving any transfer.



     Neither the Company nor the Security Registrar shall be required to exchange or register a
transfer of any Security (i) during the period beginning at the opening of business 15 days before
the earliest date on which a notice of redemption is deemed to have been given to all Holders of
Securities to be redeemed and ending at the close of business on the date on which a notice of
redemption is deemed to have been given to all Holders of Securities to be



38









 







redeemed, (ii) after any notice of redemption has been given to Holders, except that where
such notice provides that such Security is to be redeemed only in part, the Company and the
Security Registrar shall be required to exchange or register a transfer of the portion thereof not
to be redeemed, (iii) that has been surrendered for conversion or (iv) as to which a Fundamental
Change Repurchase Notice has been delivered and not withdrawn, except that where such Fundamental
Change Repurchase Notice provides that such Security is to be purchased only in part, the Company
and the Security Registrar shall be required to exchange or register a transfer of the portion
thereof not to be purchased.



     (b) Beneficial ownership of every Restricted Security shall be subject to the restrictions on
transfer provided in the legends required to be set forth on the face of each Restricted Security
pursuant to Sections 2.02 and 2.05, unless such restrictions on transfer shall be terminated in
accordance with this Section 3.05(b) or Section 3.09. The Holder of each Restricted Security, by
such Holder’s acceptance thereof, agrees to be bound by such restrictions on transfer.



     The restrictions imposed by this Section 3.05 and by Sections 2.02, 2.05 and 3.09 upon the
transferability of any particular Restricted Security shall cease and terminate upon delivery by
the Company to the Trustee of an Officers’ Certificate stating that such Restricted Security has
been sold pursuant to an effective Resale Registration Statement under the Securities Act or
transferred in compliance with Rule 144 under the Securities Act (or any successor provision
thereto). Any Restricted Security as to which the Company has delivered to the Trustee an
Officers’ Certificate stating that such restrictions on transfer shall have expired in accordance
with their terms or shall have terminated may, upon surrender of such Restricted Security for
exchange to the Security Registrar in accordance with the provisions of this Section 3.05, be
exchanged for a new Security, of like tenor and aggregate Principal Amount, which shall not bear
the restrictive legends required by Sections 2.02 and 2.05. The Company shall inform the Trustee
in writing of the effective date of any resale registration statement registering the Securities
under the Securities Act. The Trustee shall not be liable for any action taken or omitted to be
taken by it in good faith in accordance with the aforementioned resale registration statement.



     As used in the preceding two paragraphs of this Section 3.05, the term “transfer” encompasses
any sale, pledge, transfer or other disposition of any Restricted Security.



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



39









 





     Section 3.06. Mutilated, Destroyed, Lost and Stolen Securities. If any mutilated Security
is surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate and
deliver in exchange therefor a new Security of like tenor and Principal Amount and bearing a number
not contemporaneously outstanding.



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



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



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



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



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



     Section 3.07. Persons Deemed Owners. Prior to due presentment of a Security for
registration of transfer, the Company, the Trustee, the Security Registrar and any agent of the
Company, the Trustee or the Security Registrar may treat the Person in whose name such Security is
registered as the owner of such Security for the purpose of receiving payment of the principal of
such Security and for all other purposes whatsoever, whether or not such Security be overdue, and
neither the Company, the Trustee, the Security Registrar nor any



40









 







agent of the Company, the Trustee or the Security Registrar shall be affected by notice to the
contrary.



     Section 3.08. Book-Entry Provisions for Global Securities. (a) The Global Securities
initially shall (i) be registered in the name of the Depositary or the nominee of such Depositary,
(ii) be delivered to the Trustee as custodian for the Depositary and (iii) bear legends as set
forth on the face of the form of Security in Section 2.02.



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



     (b) Transfers of the Global Securities shall be limited to transfers in whole, but not in
part, to the Depositary, its successors or their respective nominees. Interests of beneficial
owners in a Global Security may be transferred or exchanged, in whole or in part, for Physical
Securities in accordance with the rules and procedures of the Depositary and the provisions of
Section 3.09. In addition, Physical Securities shall be transferred to all beneficial owners in
exchange for their beneficial interests in the Global Securities if (A) such Depositary has
notified the Company that the Depositary (i) is unwilling or unable to continue as Depositary for
such Global Security or (ii) has ceased to be a clearing agency registered under the Exchange Act
when the Depositary is required to be so registered to act as such Depositary and, in either such
case, no successor Depositary shall have been appointed within 90 days of such notification, (B)
there shall have occurred and be continuing an Event of Default with respect to such Global
Security and the Outstanding Securities shall have become due and payable pursuant to Section 10.02
and the Trustee requests that Physical Securities be issued or (C) the Company, at its option,
notifies the Trustee that it elects to cause the issuance of Physical Securities, subject to
applicable procedures of the Depositary; provided that Holders of Physical Securities offered and
sold in reliance on Rule 144A shall have the right, subject to applicable law, to request that such
Securities be exchanged for interests in the applicable Global Security.



     (c) In connection with any transfer or exchange of a portion of the beneficial interest in the
Global Security to beneficial owners pursuant to



41









 







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



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



     (e) Any Physical Security constituting a Restricted Security delivered in exchange for an
interest in the Global Security pursuant to paragraph (c) or (d) above shall, except as otherwise
provided by paragraph (c) of Section 3.09, bear the legend regarding transfer restrictions
applicable to the Physical Securities set forth on the face of the form of Security in Section
2.02.



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



     Section 3.09. Cancellation and Transfer Provisions. The Company at any time may deliver to
the Trustee for cancellation any Securities previously authenticated and delivered hereunder that
the Company may have acquired in any manner whatsoever, and may deliver to the Trustee for
cancellation any Securities previously authenticated hereunder which the Company has not issued and
sold. The Trustee shall cancel and dispose of all Securities surrendered for registration of
transfer, exchange, payment, purchase, repurchase, redemption, conversion (pursuant to Article 9
hereof) or cancellation in accordance with its customary practices. If the Company shall acquire
any of the Securities, such acquisition shall not operate as a redemption or satisfaction of the
indebtedness represented by such Securities unless and until the same are delivered to the Trustee
for cancellation. The Company may not issue new Securities to replace Securities it has paid in
full or delivered to the Trustee for cancellation.



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



42









 






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




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



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



     (c) General. By its acceptance of any Security bearing the legends required by Sections 2.02
and 2.05, each Holder of such a Security acknowledges the restrictions on transfer of such Security
set forth in this Indenture and in such legends and agrees that it will transfer such Security only
as provided in this Indenture.



43









 





     The Security Registrar shall retain, in accordance with its customary procedures, copies of
all letters, notices and other written communications received pursuant to this Section 3.09. The
Company shall have the right to inspect and make copies of all such letters, notices or other
written communications at any reasonable time upon the giving of reasonable written notice to the
Security Registrar.



     Section 3.10. CUSIP Numbers. In issuing the Securities, the Company may use “CUSIP” numbers
(if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of
redemption as a convenience to Holders; provided that any such notice may state that no
representation is made as to the correctness of such numbers either as printed on the Securities or
as contained in any notice of a redemption and that reliance may be placed only on the other
identification numbers printed on the Securities, and any such redemption shall not be affected by
any defect in or omission of such numbers. The Company will promptly notify the Trustee of any
change in the “CUSIP” numbers.



ARTICLE
4

Interest




     Section 4.01. Generally.



     (a) Regular interest (“Regular Interest”) shall accrue on the Securities from December 16,
2005 at a rate of 2.95% per annum until the principal thereof is paid or made available for
payment. Regular Interest shall be payable semi-annually in arrears on June 15 and December 15 of
each year, commencing June 15, 2006.



     (b) Interest on the Securities shall be computed (i) for any full semi-annual period for which
a particular interest rate (inclusive of any Contingent Interest, Additional Interest or Compounded
Interest payable with respect to the Securities) is applicable, on the basis of a 360-day year of
twelve 30-day months and (ii) for any period for which a particular interest rate (inclusive of any
Contingent Interest, Additional Interest or Compounded Interest payable with respect to the
Securities) is applicable shorter than a full semi-annual period for which interest is calculated,
on the basis of a 30-day month and, for such periods of less than a month, the actual number of
days elapsed over a 30-day month.



     (c) Except as otherwise provided in this Section 4.01(c), a Holder of any Securities at the
close of business on a Record Date shall be entitled to receive Interest on such Securities on the
corresponding Interest Payment Date.




     (i) A Holder of any Securities as of a Record Date that are converted after the close
of business on such Record Date and prior to the



44









 







opening of business on the corresponding Interest Payment Date shall be entitled to
receive Interest on the principal amount of such Securities, notwithstanding the
conversion of such Securities prior to such Interest Payment Date. However, a Holder that
surrenders any Securities for conversion between the close of business on a Record Date
and the opening of business on the corresponding Interest Payment Date shall be required
to pay the Company an amount equal to the Interest payable by the Company with respect to
such Securities on such Interest Payment Date at the time such Holder surrenders such
Securities for conversion, provided, however, that this sentence shall not apply to a
Holder that converts Securities:




     (A) in respect of which the Company has given notice of redemption pursuant
to Section 7.03 on a Redemption Date that is after the relevant Record Date and
on or prior to the relevant Interest Payment Date;




     (B) in respect of which the Company has specified a Fundamental Change
Repurchase Date that is after the relevant Record Date and on or prior to the
relevant Interest Payment Date; or




     (C) following the Record Date for the payment of Regular Interest on
December 15, 2035.




Accordingly, a Holder that converts Securities under any of the circumstances described in
clauses (A), (B) or (C) above will not be required to pay to the Company an amount equal
to the Interest payable by the Company with respect to such Securities on the relevant
Interest Payment Date.




     (ii) Notwithstanding any other provision of this Section 4.01(c), a Holder of any
Security that surrenders Securities for conversion shall not be required to pay to the
Company any Deferred Interest or overdue interest that exists on the Conversion Date for
such conversion, regardless of whether the Conversion Date for such conversion falls
between the close of business on a Record Date and the opening of business on the
corresponding Interest Payment Date.




     (iii) Notwithstanding any other provision of this Section 4.01(c), any Interest
payable on a Redemption Date that falls between the close of business on a Record Date and
the opening of business on the corresponding Interest Payment Date shall be payable to the
Holder of the Securities being redeemed as provided in Section 7.01(b) and shall not be
payable to the Holder on the Record Date immediately preceding such



45









 







redemption. The payment of such Interest to the Holder of the Securities being
redeemed as provided in Section 7.01(b) shall be deemed to satisfy the Company’s
obligations in respect of such Interest.




     (iv) Notwithstanding any other provision of this Section 4.01(c), any Interest
payable on a Fundamental Change Repurchase Date that falls between the close of business
on a Record Date and the opening of business on the corresponding Interest Payment Date
shall be payable to the Holder of the Securities being repurchased as provided in Section
8.01(a) and shall not be payable to the Holder on the Record Date immediately preceding
such redemption. The payment of such Interest to the Holder of the Securities being
repurchased as provided in Section 8.01(a) shall be deemed to satisfy the Company’s
obligations in respect of such Interest..



     Section 4.02. Contingent Interest. (a) Contingent interest on the Securities (“Contingent
Interest”) shall accrue and the Company shall pay such Contingent Interest to the Holders as
follows:




     (i) beginning with the six-month interest payment period commencing December 15,
2010:




     (A) during any six-month interest payment period with respect to which the
average Trading Price for the 10 Trading Days immediately preceding the first
day of such six-month interest payment period is greater than or equal to the
Upside Trigger, in which case the Contingent Interest payable on each $1,000
Principal Amount for such six-month interest payment period shall be equal to
0.40% per annum of the average Trading Price for the 10 Trading Days immediately
preceding the first day of such six-month interest payment period;




     (B) during any six-month interest payment period with respect to which the
average Trading Price for the 10 Trading Days immediately preceding the first
day of such six-month interest payment period is less than or equal to the
Downside Trigger, in which case the Contingent Interest payable on each $1,000
Principal Amount for such six-month interest payment period shall be equal to
0.25% per annum of the average Trading Price for the 10 Trading Days immediately
preceding the first day of such six-month interest payment period; and




     (ii) at any time Securities are outstanding, upon the declaration by the Company’s
Board of Directors of an extraordinary cash dividend or distribution to all or
substantially all holders of the Company’s Common



46









 







Stock that the Company’s Board of Directors designates as payable with respect to the
Securities (an “Extraordinary Dividend”), in which case (A) Contingent Interest will be
payable on the same date as, and in an amount equal to, the dividend or distribution that
a Holder would have received had such Holder converted its Securities immediately prior to
the record date for the payment of the corresponding dividend or distribution to holders
of the Company’s Common Stock and (B) the record date for such Interest shall be the same
as the record date for the payment of the corresponding extraordinary dividend or
distribution to holders of the Company’s Common Stock.



     (b) The Company shall have no obligation to determine the Trading Price of the Securities or
to request the Trustee to determine the Trading Price of the Securities unless a Holder of
Securities provides the Company with reasonable evidence that the Trading Price of the Securities
is greater than or equal to the Upside Trigger or is less than or equal to the Downside Trigger, at
which time the Company shall instruct the Trustee to determine the Trading Price of the Securities
beginning on the next Trading Day and on each successive Trading Day until the Trading Price of the
Securities is less than the Upside Trigger or is greater than the Downside Trigger, as applicable.



     Section 4.03. Trustee’s Responsibilities in Respect of Contingent Interest. The Trustee’s
sole responsibility pursuant to Section 4.02 shall be to obtain the Trading Price of the Securities
for each of the 10 Trading Days immediately preceding the first day of the applicable six-month
interest payment period and to provide such information to the Company. The Company shall
determine whether Holders are entitled to receive Contingent Interest, and if so, provide notice to
the Trustee and issue a press release as required by Section 4.05. Notwithstanding any term
contained in this Indenture or any other document to the contrary, the Trustee shall have no
responsibilities, duties or obligations for or with respect to (i) determining whether the Company
must pay Contingent Interest or (ii) determining the amount of Contingent Interest, if any, payable
by the Company.



     Section 4.04. Payment of Contingent Interest. Subject to Section 4.01 hereof, Contingent
Interest for any six-month interest payment period shall be paid on the applicable Interest Payment
Date to the Holder in whose name any Security is registered on the Security Register at the
corresponding Record Date. Contingent Interest due under this Article 4 shall be treated for all
purposes of this Indenture like any other interest accruing on the Securities.



     Section 4.05. Contingent Interest Notification. By the third Business Day of a six-month
interest payment period for which Contingent Interest specified in Section 4.02(a)(i) will be paid,
the Company will disseminate a press release through Reuters Economic Services and Bloomberg
Business News stating that



47









 







Contingent Interest will be paid on the Securities and identifying such six-month interest
payment period as the six-month interest payment period for which such Contingent Interest will be
paid. By the third Business Day following the designation by the Company’s Board of Directors of
an extraordinary cash dividend or distribution as an Extraordinary Dividend pursuant to Section
4.02(a)(ii), the Company will disseminate a press release through Reuters Economic Services and
Bloomberg Business News stating that Contingent Interest will be paid on the Securities and
identifying the Record Date for the payment of such Contingent Interest and the amount of such
extraordinary cash dividend or distribution payable with respect to each share of the Company’s
Common Stock.



     Section 4.06. Option to Extend Interest Payment. (a) Subject to the provisions of this
Article 4, the Company may from time to time extend the time for payments of Interest on the
Securities other than Contingent Interest paid in connection with any Extraordinary Dividend (any
period during which payments are so extended, an “Extension Period”); provided, however, that no
Extension Period may commence if there exists an Event of Default under Section 10.01(a). The
Company may specify the length of any Extension Period so declared, may further extend any
Extension Period prior to the termination of such Extension Period and, subject to the provisions
of this Article 4, may declare successive Extension Periods, provided, however, that no Extension
Period or series of successive Extension Periods (i) may exceed 10 consecutive six-month interest
payment periods in length or (ii) may extend beyond the Stated Maturity of the Securities.



     (b) No Interest or Deferred Interest will be due and payable during any Extension Period, but
Deferred Interest will accrue and all such accrued and unpaid Deferred Interest will itself bear
interest at the Comparable Yield Rate, compounded semi-annually (such interest, “Compounded
Interest”). The Company may prepay Deferred Interest at any time by designating a Record Date and
Interest Payment Date for the payment thereof and providing not less than 30 nor more than 60 days’
notice of such dates, together with the amount of Deferred Interest to be prepaid.



     (c) Any Extension Period in effect shall automatically terminate upon the occurrence of a
Default or Event of Default.



     Section 4.07. Actions Prohibited During Extension Periods. During any Extension Period
(and, with respect to Section 4.07(c), at any time that there exists any accrued and unpaid
Deferred Interest with respect to any Securities), the Company shall not:



     (a) declare or pay any dividends on, or redeem, purchase, acquire or make a distribution or
liquidation payment with respect to, any of the Company’s



48









 







Common Stock or preferred stock, or make any guarantee payments with respect thereto;
provided, however, that the foregoing will not apply:




     (i) to repurchases, redemptions or other acquisitions of shares of the Company’s
Capital Stock in connection with any employment contract, benefit plan or other similar
arrangement with or for the benefit of employees, officers, directors or consultants,
which contract, plan or arrangement is approved by the Company’s Board of Directors;




     (ii) as a result of an exchange or conversion of any class or series of the Company’s
Capital Stock for any other class or series of the Company’s Capital Stock;




     (iii) to the purchase of fractional interests in shares of the Company’s Capital
Stock pursuant to the conversion or exchange provisions of such Capital Stock or a
security being converted or exchanged into such Capital Stock; or




     (iv) to stock dividends or other stock distributions (including rights, warrants or
options to purchase Capital Stock) paid by the Company;



     (b) make any payment of principal, interest or premium, if any, on or repay, repurchase or
redeem any of the Company’s debt securities that rank in right of payment pari passu with, or
junior to, the Securities; or



     (c) redeem the Securities pursuant to Article 7 hereof or give notice of redemption of the
Securities pursuant to Section 7.03 hereof.



     Section 4.08. Notification of Extension Period. The Company shall give notice to the
Trustee of the commencement of an Extension Period (and shall direct the Trustee to deliver such
notice to each Holder of Securities) at least 16 days prior to the earlier of (i) any Interest
Payment Date in respect of which payment of Interest will be deferred and (ii) the date on which
the Company is required to give notice to The Nasdaq National Market (if the Securities are then
listed thereon) or other applicable self-regulatory organization or to Holders of the Securities of
the record or payment date of the related interest payment. Such notice shall specify the
commencement and end of such Extension Period and the Comparable Yield Rate applicable to any
Compounded Interest that may accrue during such Extension Period.




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ARTICLE 5

Subordination




     Section 5.01. Agreement of Subordination. The Company covenants and agrees, and each Holder
of Securities issued hereunder by its acceptance thereof likewise covenants and agrees, that all
Securities shall be issued subject to the provisions of this Article 5; and each Person holding any
Security, whether upon original issue or upon transfer, assignment or exchange thereof, accepts and
agrees to be bound by such provisions.



     The payment of the principal of and Interest on all Securities (including, but not limited to,
the Redemption Price and the Fundamental Change Repurchase Price with respect to the Securities
subject to redemption or repurchase in accordance with Articles 7 and 8, respectively, and the
payment of any cash upon conversion in accordance with Article 9) issued hereunder shall, to the
extent and in the manner hereinafter set forth, be subordinated and subject in right of payment to
the prior payment in full in cash or other payment satisfactory to the holders of Senior Debt of
all Senior Debt, whether outstanding at the date of this Indenture or thereafter incurred.



     No provision of this Article 5 shall prevent the occurrence of any Default or Event of Default
hereunder.



     Section 5.02. Payments to Holders. No payment shall be made with respect to the principal
of or Interest on the Securities (including, but not limited to, the Redemption Price and the
Fundamental Change Repurchase Price with respect to the Securities subject to redemption or
purchase in accordance with Articles 7 and 8, respectively, and any payment of cash upon conversion
in accordance with Article 9), except payments and distributions made by the Trustee as permitted
by the first or second paragraph of Section 5.05, if:




     (a) a default in the payment of principal, premium, interest or other amounts due on
any Senior Debt, or in respect of any redemption or repurchase obligation under any Senior
Debt, occurs and is continuing (or, in the case of Senior Debt for which there is a period
of grace, in the event of such a default that continues beyond the period of grace, if
any, specified in the instrument or lease evidencing such Senior Debt) (a “Payment
Default”); or




     (b) a default, other than a Payment Default, on any Designated Senior Debt occurs and
is continuing that then permits holders of such Designated Senior Debt (or any
Representative) to accelerate its maturity (a “Non-Payment Default”) and a Responsible
Officer of the Trustee receives at the Corporate Trust Office a written notice of the
default (a



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“Payment Blockage Notice”) from the Company or a Representative of Designated Senior
Debt.



     Notwithstanding the foregoing, following the delivery of a Payment Blockage Notice, no new
Payment Blockage Notice may be delivered and no new period of payment blockage with respect to the
Securities may begin until both (i) 365 consecutive days have elapsed since the effectiveness of
the first Payment Blockage Notice and (ii) all scheduled payments of principal and Interest with
respect to the Securities that are due have been paid in full in cash. No default that existed or
was continuing on the date of delivery of any Payment Blockage Notice with respect to the
Designated Senior Debt whose holders delivered the Payment Blockage Notice may be made the basis of
a subsequent Payment Blockage Notice by the holders of such Designated Senior Debt, whether or not
within a period of 365 consecutive days.



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




     (1) in the case of a Payment Default, the date upon which the default is cured or
waived or ceases to exist, or




     (2) in the case of a Non-Payment Default, the earlier of the date on which such
default is cured or waived or ceases to exist, in each case as and to the extent permitted
under the documentation for the Designated Senior Debt, or the 179th day after
the date on which the applicable Payment Blockage Notice is received, in each case, unless
the maturity of the Designated Senior Debt has been accelerated or this Article 5
otherwise prohibits the payment or distribution at the time of such payment or
distribution.



     Upon any payment by the Company, or distribution of assets of the Company of any kind or
character, whether in cash, property or securities, to creditors upon any dissolution or winding-up
or liquidation or reorganization of the Company (whether voluntary or involuntary) or in
bankruptcy, insolvency, receivership or similar proceedings, all amounts due or to become due upon
all Senior Debt shall first be paid in full in cash, or other payments satisfactory to the holders
of Senior Debt before any payment of cash, property or securities is made on account of the
principal of or Interest on, or with respect to the conversion of, the Securities (except, to the
extent required by applicable law, payments made pursuant to Article 14 from monies deposited with
the Trustee pursuant thereto prior to commencement of proceedings for such dissolution, winding-up,
liquidation or reorganization); and upon any such dissolution or winding-up or liquidation or
reorganization of the Company or bankruptcy, insolvency, receivership or other proceeding, any
payment by the Company, or distribution of assets of the Company of any kind or character, whether
in cash, property or



51









 







securities, to which the Holders of the Securities or the Trustee would be entitled, except
for the provision of this Article 5, shall (except as aforesaid) be paid by the Company or by any
receiver, trustee in bankruptcy, liquidating trustee, agent or other Person making such payment or
distribution, or by the Holders of the Securities or by the Trustee under this Indenture if
received by them or it, directly to the holders of Senior Debt (pro rata to such holders on the
basis of the respective amounts of Senior Debt held by such holders, or as otherwise required by
law or a court order) or their representative or representatives, or to the trustee or trustees
under any indenture pursuant to which any instruments evidencing any Senior Debt may have been
issued, as their respective interests may appear, to the extent necessary to pay all Senior Debt in
full in cash, or other payment satisfactory to the holders of Senior Debt, after giving effect to
any concurrent payment or distribution to or for the holders of Senior Debt, before any payment or
distribution is made to the Holders of the Securities or to the Trustee.



     For purposes of this Article 5, the words, “cash, property or securities” shall not be deemed
to include shares of Capital Stock of the Company as reorganized or readjusted, or securities of
the Company or any other corporation provided for by a plan of reorganization or readjustment, the
payment of which is subordinated at least to the extent provided in this Article 5 with respect to
the Securities to the payment of all Senior Debt which may at the time be outstanding; provided
that (i) the Senior Debt is assumed by the new corporation, if any, resulting from any
reorganization or readjustment, and (ii) the rights of the holders of Senior Debt (other than
leases which are not assumed by the Company or the new corporation, as the case may be) are not,
without the consent of such holders, altered by such reorganization or readjustment. The
consolidation of the Company with, or the merger of the Company into, another corporation or the
liquidation or dissolution of the Company following the conveyance, transfer or lease of all or
substantially all its property to another corporation upon the terms and conditions provided for in
Article 11 shall not be deemed a dissolution, winding-up, liquidation or reorganization for the
purposes of this Section 5.02 if such other corporation shall, as a part of such consolidation,
merger, conveyance, transfer or lease, comply with the conditions stated in Article 11.



     If payment of the Securities is accelerated because of an Event of Default, the Company shall
promptly notify holders of Senior Debt or their Representatives of such acceleration. The Company
shall not pay the Securities until five days after the holders or Representatives for the holders
of Senior Debt receive notice of the acceleration and after which the Company shall pay the
Securities only if this Article 5 otherwise permits payment at that time.



     In the event that, notwithstanding the foregoing provisions, any payment or distribution of
assets of the Company of any kind or character, whether in cash, property or securities (including,
without limitation, by way of setoff or otherwise), prohibited by the foregoing, shall be received
by the Trustee or the



52









 







Holders of the Securities before all Senior Debt is paid in full, in cash or other payment
satisfactory to the holders of Senior Debt, or provision is made for such payment thereof in
accordance with its terms in cash or other payment satisfactory to the holders of Senior Debt, such
payment or distribution shall be held in trust for the benefit of and shall be paid over or
delivered to the holders of Senior Debt or their Representative or Representatives, as their
respective interests may appear, as calculated by the Company, for application to the payment of
all Senior Debt remaining unpaid to the extent necessary to pay all Senior Debt in full, in cash or
other payment satisfactory to the holders of Senior Debt or their Representative, after giving
effect to any concurrent payment or distribution to or for the holders of such Senior Debt.



     Nothing in this Section 5.02 shall apply to claims of, or payments to, the Trustee under or
pursuant to Section 10.05 and Section 12.07. This Section 5.02 shall be subject to the further
provisions of Section 5.05.



     Section 5.03. Subrogation of Securities. Subject to the payment in full, in cash or other
payment satisfactory to the holders of Senior Debt, of all Senior Debt, the rights of the Holders
of the Securities shall be subrogated to the extent of the payments or distributions made to the
holders of such Senior Debt pursuant to the provisions of this Article 5 (equally and ratably with
the holders of all indebtedness of the Company which by its express terms is subordinated to other
indebtedness of the Company to substantially the same extent as the Securities are subordinated and
is entitled to like rights of subrogation) to the rights of the holders of Senior Debt to receive
payments or distributions of cash, property or securities of the Company applicable to the Senior
Debt until the principal of and Interest on the Securities shall be paid in full in cash or other
payment satisfactory to the Holders of Securities; and, for the purposes of such subrogation, no
payments or distributions to the holders of the Senior Debt of any cash, property or securities to
which the Holders of the Securities or the Trustee would be entitled except for the provisions of
this Article 5, and no payment over pursuant to the provisions of this Article 5, to or for the
benefit of the holders of Senior Debt by Holders of the Securities or the Trustee, shall, as
between the Company, its creditors other than holders of Senior Debt, and the Holders of the
Securities, be deemed to be a payment by the Company to or on account of the Senior Debt; and no
payment or distribution of cash, property or securities to or for the benefit of the Holders of the
Securities pursuant to the subrogation provisions of this Article 5, which would otherwise have
been paid to the holders of Senior Debt shall be deemed to be a payment by the Company to or for
the account of the Securities. It is understood that the provisions of this Article 5 are and are
intended solely for the purposes of defining the relative rights of the Holders of the Securities,
on the one hand, and the holders of the Senior Debt, on the other hand.



53









 





     Nothing contained in this Article 5 or elsewhere in this Indenture or in the Securities is
intended to or shall impair, as among the Company, its creditors other than the holders of Senior
Debt, and the Holders of the Securities, the obligation of the Company, which is absolute and
unconditional, to pay to the Holders of the Securities the principal of and Interest on the
Securities as and when the same shall become due and payable in accordance with their terms, or is
intended to or shall affect the relative rights of the Holders of the Securities and creditors of
the Company other than the holders of the Senior Debt.



     Upon any payment or distribution of assets of the Company referred to in this Article 5, the
Trustee, subject to the provisions of Section 12.01, and the Holders of the Securities shall be
entitled to rely upon any order or decree made by any court of competent jurisdiction in which such
bankruptcy, dissolution, winding-up, liquidation or reorganization proceedings are pending, or a
certificate of the receiver, trustee in bankruptcy, liquidating trustee, agent or other person
making such payment or distribution, delivered to the Trustee or to the Holders of the Securities,
for the purpose of ascertaining the persons entitled to participate in such distribution, the
holders of the Senior Debt and other indebtedness of the Company, the amount thereof or payable
thereon and all other facts pertinent thereto or to this Article 5.



     Section 5.04. Authorization to Effect Subordination. Each Holder of a Security by the
Holder’s acceptance thereof authorizes and directs the Trustee on the Holder’s behalf to take such
action as may be necessary or appropriate to effectuate the subordination as provided in this
Article 5 and appoints the Trustee to act as the Holder’s attorney-in-fact for any and all such
purposes. If the Trustee does not file a proper proof of claim or proof of debt in the form
required in any proceeding referred to in Section 5.03 hereof at least 30 days before the
expiration of the time to file such claim, the holders of any Senior Debt or their representatives
are hereby authorized to file an appropriate claim for and on behalf of the Holders of the
Securities.



     Section 5.05. Notice to Trustee. The Company shall give prompt written notice in the form
of an Officers’ Certificate to a Responsible Officer of the Trustee and to any Paying Agent of any
fact known to the Company that would prohibit the making of any payment of monies to or by the
Trustee or any Paying Agent in respect of the Securities pursuant to the provisions of this Article
5. Notwithstanding the provisions of this Article 5 or any other provision of this Indenture, the
Trustee shall not be charged with knowledge of the existence of any facts which would prohibit the
making of any payment of monies to or by the Trustee in respect of the Securities pursuant to the
provisions of this Article 5, unless and until a Responsible Officer of the Trustee shall have
received written notice thereof at the applicable Corporate Trust Office from the Company (in the
form of an Officers’ Certificate) or a Representative or a Holder or Holders of Senior Debt or from
any trustee thereof; and before the receipt of any such written



54









 







notice, the Trustee, subject to the provisions of Section 12.01, shall be entitled in all
respects to assume that no such facts exist; provided that, if on a date not less than two Business
Days prior to the date upon which by the terms hereof any such monies may become payable for any
purpose (including, without limitation, the payment of the principal of or Interest on any
Security) the Trustee shall not have received, with respect to such monies, the notice provided for
in this Section 5.05, then, anything herein contained to the contrary notwithstanding, the Trustee
shall have full power and authority to receive such monies and to apply the same to the purpose for
which they were received, and shall not be affected by any notice to the contrary which may be
received by it on or after such prior date. Notwithstanding anything in this Article 5 to the
contrary, nothing shall prevent any payment by the Trustee to the Holders of monies deposited with
it pursuant to Article 14, and any such payment shall not be subject to the provisions of this
Article 5.



     The Trustee, subject to the provisions of Section 12.01, shall be entitled to rely on the
delivery to it of a written notice by a Representative or a person representing himself to be a
holder of Senior Debt (or a trustee on behalf of such holder) to establish that such notice has
been given by a Representative or a holder of Senior Debt. In the event that the Trustee determines
in good faith that further evidence is required with respect to the right of any person as a holder
of Senior Debt to participate in any payment or distribution pursuant to this Article 5, the
Trustee may request such Person to furnish evidence to the reasonable satisfaction of the Trustee
as to the amount of Senior Debt held by such Person, the extent to which such Person is entitled to
participate in such payment or distribution and any other facts pertinent to the rights of such
Person under this Article 5, and if such evidence is not furnished the Trustee may defer any
payment to such Person pending judicial determination as to the right of such Person to receive
such payment.



     Section 5.06. Trustee’s Relation to Senior Debt. The Trustee in its individual capacity
shall be entitled to all the rights set forth in this Article 5 in respect of any Senior Debt at
any time held by it, to the same extent as any other holder of Senior Debt, and nothing in Section
12.13 or elsewhere in this Indenture shall deprive the Trustee of any of its rights as such holder.



     With respect to the holders of Senior Debt, the Trustee undertakes to perform or to observe
only such of its covenants and obligations as are specifically set forth in this Article 5, and no
implied covenants or obligations with respect to the holders of Senior Debt shall be read into this
Indenture against the Trustee. The Trustee shall not be deemed to owe any fiduciary duty to the
holders of Senior Debt and, subject to the provisions of Section 12.01, the Trustee shall not be
liable to any holder of Senior Debt if it shall pay over or deliver to Holders of Securities, the
Company or any other Person money or assets to which any holder of Senior Debt shall be entitled by
virtue of this Article 5 or otherwise.



55









 





     Section 5.07. No Impairment of Subordination. No right of any present or future holder of
any Senior Debt to enforce subordination as herein provided shall at any time in any way be
prejudiced or impaired by any act or failure to act on the part of the Company or by any act or
failure to act, in good faith, by any such holder, or by any noncompliance by the Company with the
terms, provisions and covenants of this Indenture, regardless of any knowledge thereof which any
such holder may have or otherwise be charged with.



     Section 5.08. Certain Conversions Not Deemed Payment. For the purposes of this Article 5
only, the issuance and delivery of Common Stock and the payment of cash in lieu of fractional
shares of such Common Stock upon conversion of a Security in accordance with Article 9 shall not be
deemed to constitute a payment or distribution on account of the principal of or Interest on such
Security. Nothing contained in this Article 5 or elsewhere in this Indenture or in the Securities
is intended to or shall impair, as among the Company, its creditors other than holders of Senior
Debt and the Holders, the right, which is absolute and unconditional, of the Holder of any Security
to convert such Security in accordance with Article 9.



     Section 5.09. Article Applicable to Paying Agents. If at any time any Paying Agent other
than the Trustee shall have been appointed by the Company and be then acting hereunder, the term
“Trustee” as used in this Article shall (unless the context otherwise requires) be construed as
extending to and including such Paying Agent within its meaning as fully for all intents and
purposes as if such Paying Agent were named in this Article in addition to or in place of the
Trustee; provided, however, that the first paragraph of Section 5.05 shall not apply to the Company
or any Affiliate of the Company if it or such Affiliate acts as Paying Agent.



     Section 5.10. Senior Debt Entitled to Rely. The holders of Senior Debt (including, without
limitation, Designated Senior Debt) shall have the right to rely upon this Article 5, and no
amendment or modification of the provisions contained herein shall diminish the rights of such
holders unless such holders shall have agreed in writing thereto.



ARTICLE 6

Covenants




     Section 6.01. Payments. The Company shall duly and punctually make all payments in respect
of the Securities in accordance with the terms of the Securities and this Indenture.



     Any payments made or due pursuant to this Indenture shall be considered paid on the applicable
date due if by 10:00 a.m., New York City time, on such



56









 







date the Paying Agent holds, in accordance with this Indenture, cash sufficient to pay all
such amounts then due. Payment of the principal of and Interest on the Securities shall be in such
coin or currency of the United States of America as at the time of payment is legal tender for
payment of public and private debts.



     Section 6.02. Maintenance of Office or Agency. The Company shall maintain in the Borough of
Manhattan, The City of New York, an office or agency where Securities may be presented or
surrendered for payment, where Securities may be surrendered for registration of transfer or
exchange and where notices and demands to or upon the Company in respect of the Securities and this
Indenture may be served, which shall initially be the applicable Corporate Trust Office of the
Trustee. The Company shall give prompt written notice to the Trustee of the location, and any
change in the location, of such office or agency. If at any time the Company shall fail to
maintain any such required office or agency or shall fail to furnish the Trustee with the address
thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate
Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive
all such presentations, surrenders, notices and demands.



     The Company may also from time to time designate one or more other offices or agencies (in or
outside the Borough of Manhattan, The City of New York) where the Securities 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. The Company shall give prompt written notice to the Trustee of any such
designation or rescission and of any change in the location of any such other office or agency.



     Section 6.03. Appointments to Fill Vacancies in Trustee’s Office. The Company, whenever
necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided
in Section 12.10, a Trustee, so that there shall at all times be a Trustee hereunder.



     Section 6.04. Money for Security Payments to be Held in Trust. If the Company shall at any
time act as its own Paying Agent, it shall, on or before each due date of any payment in respect of
any of the Securities, segregate and hold in trust for the benefit of the Persons entitled thereto
a sum sufficient to make the payment so becoming due until such sums shall be paid to such Persons
or otherwise disposed of as herein provided and shall promptly notify the Trustee of its action or
failure so to act.



     Whenever the Company shall have one or more Paying Agents, it will, prior to each due date of
any payment in respect of any Securities, deposit with a



57









 







Paying Agent a sum sufficient to pay such amount, such sum to be held as provided by the Trust
Indenture Act, and (unless such Paying Agent is the Trustee) the Company will promptly notify the
Trustee of its action or failure so to act.



     The Company shall cause each Paying Agent other than the Trustee to execute and deliver to the
Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the
provisions of this Section 6.04, that such Paying Agent will (i) comply with the provisions of the
Trust Indenture Act applicable to it as a Paying Agent and (ii) during the continuance of any
default by the Company (or any other obligor upon the Securities) in the making of any payment in
respect of the Securities, upon the written request of the Trustee, forthwith pay to the Trustee
all sums held in trust by such Paying Agent as such.



     The Company may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay,
to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by
the Trustee upon the same trusts as those upon which such sums were held by the Company or such
Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be
released from all further liability with respect to such money.



     Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the making of payments in respect of any Security and remaining unclaimed for two years
after such payment has become due shall be paid to the Company on Company Request, or (if then held
by the Company) shall be discharged from such trust; and the Holder of such Security shall
thereafter, as an unsecured general creditor, look only to the Company for payment thereof, and all
liability of the Trustee or such Paying Agent with respect to such trust money, and all liability
of the Company as trustee thereof, shall thereupon cease; provided, however, that the Trustee or
such Paying Agent, before being required to make any such repayment, may at the expense of the
Company cause to be published once, in a newspaper published in the English language, customarily
published on each Business Day and of general circulation in The City of New York, notice that such
money remains unclaimed and that, after a date specified therein, which shall not be less than 30
days from the date of such publication, any unclaimed balance of such money then remaining shall be
repaid to the Company. In the absence of a written request from the Company to return funds
remaining unclaimed for two years after such payment has become due to the Company, the Trustee
shall from time to time deliver all unclaimed payments to or as directed by applicable escheat
authorities, as determined by the Trustee in its sole discretion, in accordance with the customary
practices and procedures of the Trustee. Any such unclaimed funds held by the Trustee



58









 







pursuant to this Section 6.04 shall be held uninvested and without any liability for interest.



     Section 6.05. Statement by Officers as to Default. The Company will deliver to the Trustee,
within 120 days after the end of each fiscal year of the Company ending after the date hereof, an
Officers’ Certificate, stating whether or not to the 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 6.06. Existence. Subject to Article 11, the Company shall do or cause to be done
all things necessary to preserve and keep in full force and effect its existence, rights (charter
and statutory) and franchises; provided, however, that the Company shall not be required to
preserve any such right or franchise if the Board of Directors of 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 6.07. Rule 144A Information Requirement. Within the period prior to the expiration
of the holding period applicable to sales of Securities or any Common Stock issuable on conversion
thereof under Rule 144(k) under the Securities Act (or any successor provision), the Company
covenants and agrees that it shall, during any period in which it is not subject to Section 13 or
15(d) under the Exchange Act, make available to any Holder or beneficial Securityholder or any such
Common Stock, in each case which continue to be Restricted Securities, in connection with any sale
thereof and any prospective Purchasers of Securities or such Common Stock from such Holder or
beneficial holder, the information required pursuant to Rule 144A(d)(4) under the Securities Act
upon the request of any Holder or beneficial holder of the Securities or such Common Stock and it
will take such further action as any Holder or beneficial holder of such Securities or such Common
Stock may reasonably request, all to the extent required from time to time to enable such Holder or
beneficial holder to sell its Securities or Common Stock without registration under the Securities
Act within the limitation of the exemption provided by Rule 144A, as such rule may be amended from
time to time. Upon the request of any Holder or any beneficial holder of the Securities or such
Common Stock, the Company will deliver to such Holder a written statement as to whether it has
complied with such requirements.



     Section 6.08. Resale of Certain Securities. During the period beginning on the Issue Date
and ending on the date that is two years from the Issue Date, the Company shall not, and shall not
permit any of its “affiliates” (as defined under Rule 144 under the Securities Act or any successor
provision thereto) to, resell any Securities which constitute “restricted securities” under Rule
144 that have



59









 







been reacquired by any of them. The Trustee shall have no responsibility in respect of the
Company’s performance of its agreement in the preceding sentence.



     Section 6.09. Book-Entry System. If the Securities cease to trade in the Depositary’s
book-entry settlement system, the Company covenants and agrees that it shall use reasonable efforts
to make such other book entry arrangements that it determines are reasonable for the Securities.



     Section 6.10. Additional Interest under the Registration Rights Agreement. If at any time
Additional Interest become payable by the Company pursuant to the Registration Rights Agreement,
the Company shall promptly deliver to the Trustee a certificate to that effect and stating (i) the
amount of such Additional Interest that is payable and (ii) the date on which such Additional
Interest is payable pursuant to the terms of the Registration Rights Agreement. Unless and until a
Responsible Officer of the Trustee receives such a certificate, the Trustee may assume without
inquiry that no Additional Interest is payable. If the Company has paid Additional Interest
directly to the Persons entitled to such Additional Interest, the Company shall deliver to the
Trustee a certificate setting forth the particulars of such payment.



     Section 6.11. Stay, Extension and Usury Laws. The Company covenants (to the extent that it
may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever
claim or take the benefit or advantage of, any stay, extension or usury law or other law which
would prohibit or forgive the Company from paying all or any portion of the principal of or
interest on the Notes as contemplated herein, wherever enacted, now or at any time hereafter in
force, or which may affect the covenants or the performance of this Indenture; and the Company (to
the extent it may lawfully do so) hereby expressly waives all benefit or advantage of any such law,
and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of
any power herein granted to the Trustee, but will suffer and permit the execution of every such
power as though no such law had been enacted.



     Section 6.12. Information for IRS Filings. The Company shall provide to the Trustee on a
timely basis such information as the Trustee requires to enable the Trustee to prepare and file any
form required to be submitted by the Company to the Internal Revenue Service and the Holders of the
Securities.



     Section 6.13. 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 6.14. Tax Treatment of the Securities. The Company agrees, and by acceptance of a
beneficial ownership interest in the Securities each Holder of



60









 







Securities will be deemed to have agreed, for United States federal income tax purposes, (a)
to treat the Securities as indebtedness of the Company subject to United States Treasury
regulations section 1.1275-4 (the “Contingent Debt Regulations”) and, for purposes of the
Contingent Debt Regulations, to treat the Fair Market Value of any Common Stock beneficially
received by a Holder upon any conversion of the Securities as a contingent payment, (b) to be bound
by the Company’s determination of the “comparable yield” and “projected payment schedule,” within
the meaning of the Contingent Debt Regulations, with respect to the Securities and (c) to use such
“comparable yield” and “projected payment schedule” in determining interest accruals with respect
to such Holder’s Securities and in determining adjustments thereto. A Holder of Securities may
obtain the issue date, yield to maturity, comparable yield and the projected payment schedule by
submitting a written request for such information to: Intel Corporation, 2200 Mission College
Blvd., M/S SC4-203, Santa Clara, CA 95052-8119, Attention: Corporate Secretary, with a copy to
Intel Corporation, 2200 Mission College Blvd., M/S RN6-46, Santa Clara, CA 95052-8119, Attention:
Treasurer.



ARTICLE 7

Redemption




     Section 7.01. Right to Redeem; Notices to Trustee. (a) The Securities may be redeemed in
whole or in part at the option of the Company:




     (i) on or prior to June 12, 2006, if any Tax Triggering Event has occurred; and




     (ii) on or after December 15, 2012, if the Last Reported Sale Price of the Company’s
Common Stock has been greater than or equal to 130% of Conversion Price then in effect for
at least 20 Trading Days during any 30 consecutive Trading Day period prior to the date on
which the Company provides notice of redemption.



     (b) The redemption price at which the Securities are redeemable (the “Redemption Price”) shall
be payable in cash and shall be equal to:




     (i) in the case of a redemption pursuant to Section 7.01(a)(i), 101.5% of the
Principal Amount of the Securities being redeemed plus (A) accrued and unpaid Interest to,
but excluding, the Redemption Date and (B) if the Conversion Value as of the Redemption
Date of the Securities being redeemed exceeds their Initial Conversion Value, 77% of the
amount determined by subtracting the Initial Conversion Value of such Securities from
their Conversion Value as of the Redemption Date; or



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     (ii) in the case of a redemption pursuant to Section 7.01(a)(ii), 100% of the
Principal Amount of Securities to be redeemed, together with accrued and unpaid Interest
to, but excluding, the Redemption Date; provided, however, that if Securities are redeemed
on any Interest Payment Date, the Interest payable in respect of such Interest Payment
Date shall be payable to the Holders of record as of the corresponding Record Date.



     (c) The Company may not redeem any Securities unless all accrued and unpaid Interest thereon
has been or is simultaneously paid for all semi-annual periods or portions thereof terminating
prior to the Redemption Date. In addition, the Company may not redeem any Securities or deliver to
any Holder of Securities a notice of redemption pursuant to Section 7.03 during any Extension
Period or at any time when there exists any accrued and unpaid Deferred Interest.



     (d) Except as provided in this Section 7.01, the Securities shall not be redeemable by the
Company.



     Section 7.02. Selection of Securities to be Redeemed. If less than all the Securities are
to be redeemed, the Trustee shall select the Securities to be redeemed pro rata or by lot or by any
other method the Trustee considers fair and appropriate (so long as such method is not prohibited
by the rules of The Nasdaq National Market or any stock exchange on which the Securities are then
listed, as applicable). The Trustee shall make the selection within 7 days from its receipt of the
notice from the Company delivered pursuant to Section 7.03 from Outstanding Securities not
previously called for redemption.



     Securities and portions of them the Trustee selects shall be in Principal Amounts of $1,000 or
integral multiples of $1,000. Provisions of this Indenture that apply to Securities called for
redemption in whole also apply to Securities called for redemption in part. The Trustee shall
notify the Company promptly of the Securities or portions of Securities to be redeemed.



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



     Section 7.03. Notice of Redemption. At least 30 days but not more than 60 days before a
Redemption Date, the Company shall mail a notice of redemption by first-class mail, postage
prepaid, to the Trustee, the Paying Agent and each Holder of Securities to be redeemed; provided,
however, that the Company may not deliver any such notice to any Holder of Securities during any



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Extension Period or at any time when there exists any accrued and unpaid Deferred Interest.



     The notice shall specify the Securities to be redeemed and shall state:




     (i) the Redemption Date;




     (ii) the Redemption Price;




     (iii) the Conversion Price;




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




     (v) that Securities called for redemption may be converted at any time before the
close of business on the Business Day immediately preceding the Redemption Date;




     (vi) that Holders who want to convert Securities must satisfy the requirements set
forth therein and in this Indenture;




     (vii) that Securities called for redemption must be surrendered to the Paying Agent
for cancellation to collect the Redemption Price;




     (viii) if fewer than all the outstanding Securities are to be redeemed, the
certificate numbers (if such Securities are held other than in global form) and Principal
Amounts of the particular Securities to be redeemed;




     (ix) that, unless the Company defaults in making payment of such Redemption Price,
Interest will cease to accrue on and after the Redemption Date; and




     (x) the CUSIP number of the Securities.



     At the Company’s written request delivered at least 30 days prior to the date such notice is
to be given (unless a shorter time period shall be acceptable to the Trustee), the Trustee shall
give the notice of redemption to each Holder of Securities to be redeemed in the Company’s name and
at the Company’s expense.



     Section 7.04. Effect of Notice of Redemption. Once notice of redemption is given,
Securities called for redemption become due and payable on the Redemption Date and at the
Redemption Price stated in the notice except for Securities that are converted in accordance with
the terms of this Indenture. Upon surrender to the Paying Agent, such Securities shall be paid at
the Redemption Price stated in the notice.



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     Section 7.05. Deposit of Redemption Price. Prior to 10:00 a.m. (New York City time) on a
Redemption Date, the Company shall deposit with the Paying Agent (or if the Company or a Subsidiary
or an Affiliate of either of them is the Paying Agent, shall segregate and hold in trust) money
sufficient to pay the Redemption Price of all Securities to be redeemed on that date other than
Securities or portions of Securities called for redemption which on or prior thereto have been
delivered by the Company to the Trustee for cancellation or have been converted. The Paying Agent
shall as promptly as practicable return to the Company any money not required for that purpose
because of conversion of Securities pursuant to Article 9. If such money is then held by the
Company in trust and is not required for such purpose it shall be discharged from such trust.



     Section 7.06. Securities Redeemed in Part. Upon surrender of a Security that is redeemed in
part, the Company shall execute and the Trustee shall authenticate and deliver to the Holder a new
Security in an authorized denomination equal in principal amount to the unredeemed portion of the
Security surrendered. The Company shall not be required to (i) issue, register the transfer of, or
exchange any Securities during a period of 15 days before the Redemption Date or (ii) register the
transfer of, or exchange any, Securities so selected for redemption, in whole or in part, except
the unredeemed portion of any Security being redeemed in part.



ARTICLE 8

Fundamental Changes and Repurchases Thereupon




     Section 8.01. Repurchase at Option of Holders Upon a Fundamental Change.



     (a) Generally. If a Fundamental Change occurs at any time, then each Securityholder shall
have the right, at such Holder’s option, to require the Company to repurchase all of such Holder’s
Securities or any portion thereof that is a multiple of $1,000 Principal Amount, on the date (the
“Fundamental Change Repurchase Date”) specified by the Company that is not less than 20 Business
Days and not more than 35 Business Days after the date of the Fundamental Change Company Notice (as
defined below) at a repurchase price equal to 100% of the Principal Amount thereof, together with
accrued and unpaid Interest thereon to, but excluding, the Fundamental Change Repurchase Date (the
“Fundamental Change Repurchase Price”); provided, however, that if Securities are repurchased
pursuant to this Section 8.01 on any Interest Payment Date, the Interest payable in respect of such
Interest Payment Date shall be payable to the Holders of record as of the corresponding Record
Date.



     Repurchases of Securities under this Section 8.01 shall be made, at the option of the Holder
thereof, upon:



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     (i) delivery to the Trustee (or other Paying Agent appointed by the Company) by a
Holder of a duly completed notice (the “Fundamental Change Repurchase Notice”) in the form
set forth on the reverse of the Securities prior to the close of business on the
Fundamental Change Repurchase Date; and




     (ii) delivery or book-entry transfer of the Securities to the Trustee (or other
Paying Agent appointed by the Company) at any time after delivery of the Fundamental
Change Repurchase Notice (together with all necessary endorsements) at the applicable
Corporate Trust Office of the Trustee (or other Paying Agent appointed by the Company) in
the Borough of Manhattan, such delivery being a condition to receipt by the Holder of the
Fundamental Change Repurchase Price therefor; provided that such Fundamental Change
Repurchase Price shall be so paid pursuant to this Section 8.01 only if the Securities so
delivered to the Trustee (or other Paying Agent appointed by the Company) shall conform in
all respects to the description thereof in the related Fundamental Change Repurchase
Notice.



     The Fundamental Change Repurchase Notice shall state:




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




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




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



     Any purchase by the Company contemplated pursuant to the provisions of this Section 8.01 shall
be consummated by the delivery of the consideration to be received by the Holder promptly following
the later of the Fundamental Change Repurchase Date and the time of the book-entry transfer or
delivery of the Securities.



     Notwithstanding anything herein to the contrary, any Holder delivering to the Trustee (or
other Paying Agent appointed by the Company) the Fundamental Change Repurchase Notice contemplated
by this Section 8.01 shall have the right to withdraw such Fundamental Change Repurchase Notice at
any time prior to the close of business on the Business Day prior to the Fundamental Change
Repurchase Date by delivery of a written notice of withdrawal to the Trustee (or



65









 







other Paying Agent appointed by the Company) in accordance with Section 8.03 below.



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



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



     Each Fundamental Change Company Notice shall specify:




     (i) the events causing the Fundamental Change;




     (ii) the date of the Fundamental Change;




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




     (iv) the Fundamental Change Repurchase Price;




     (v) the Fundamental Change Repurchase Date;




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




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




     (viii) whether the Company will pay the Fundamental Change Repurchase Price in cash,
shares of the Company’s Common Stock, Acquiror Securities or a combination thereof,
specifying the percentage of each;




     (ix) if applicable, that the Securities with respect to which a Fundamental Change
Repurchase Notice has been delivered by a Holder



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may be converted only if the Holder withdraws the Fundamental Change Repurchase
Notice in accordance with Section 8.03; and




     (x) the procedures that Holders must follow to require the Company to repurchase
their Securities.



     No failure of the Company to give the foregoing notices and no defect therein shall limit the
Securityholders’ repurchase rights or affect the validity of the proceedings for the repurchase of
the Securities pursuant to this Section 8.01.



     (c) No Payment During Events of Default. There shall be no repurchase of any Securities
pursuant to this Section 8.01 if there has occurred (prior to, on or after, as the case may be, the
giving, by the Holders of such Securities, of the required Fundamental Change Repurchase Notice)
and is continuing an Event of Default (other than a default that is cured by the payment of the
Fundamental Change Repurchase Price with respect to such Securities). The Paying Agent will
promptly return to the respective Holders thereof any Securities (i) with respect to which a
Fundamental Change Repurchase Notice has been withdrawn in compliance with this Indenture, or (ii)
held by it during the continuance of an Event of Default (other than a default that is cured by the
payment of the Fundamental Change Repurchase Price with respect to such Securities) in which case,
upon such return, the Fundamental Change Repurchase Notice with respect thereto shall be deemed to
have been withdrawn.



     (d) Payment of Fundamental Change Repurchase Price. The Securities to be repurchased pursuant
to this Section 8.01 shall be paid for in cash; provided that if a Fundamental Change occurs as a
result of a Change of Control Event and no Event of Default has occurred or is continuing, the
Securities to be repurchased may be paid for, in whole or in part, at the election of the Company,
in (i) shares of the Company’s Common Stock that are Publicly Traded Securities, (ii) shares of
Capital Stock of an acquiror of the Company that are Publicly Traded Securities (“Acquiror
Securities”) or (iii) any combination of cash or the shares specified in clauses (i) or (ii), in
each case subject to the conditions set forth in paragraph (e) below.



     (e) Conditions for Election to Pay Fundamental Change Repurchase Price in Common Stock or
Acquiror Securities. If the Company elects to pay all or any portion of the Fundamental Change
Repurchase Price in shares of Common Stock or in Acquiror Securities, the number of shares of
Common Stock or Acquiror Securities to be paid will equal the quotient obtained by dividing (i) the
portion of the Fundamental Change Repurchase Price to be paid in such shares of Common Stock or
Acquiror Securities by (ii) 95% of the average of the Last Reported Sale Price of such shares of
Common Stock or Acquiror Securities, as applicable, for the five Trading Day period immediately
preceding but ending on the third Trading Day immediately preceding the Fundamental Change



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Repurchase Date, appropriately adjusted to take into account the occurrence, during the period
commencing on the first of the Trading Days during the five Trading Day period and ending on the
Fundamental Change Repurchase Date, of any event described in Section 9.03. The Company shall
designate, in the Fundamental Change Company Notice delivered pursuant to Section 8.01(b) above,
whether it will repurchase the Securities for cash, shares of Common Stock or Acquiror Securities
or, if a combination thereof, the percentages of the Fundamental Change Repurchase Price in respect
of which it will pay cash, shares of Common Stock and Acquiror Securities; provided that the
Company will pay cash for fractional interests in shares of Common Stock and Acquiror Securities.
For purposes of determining the existence of potential fractional interests, all Securities subject
to repurchase by the Company held by a Holder shall be considered together (no matter how many
separate certificates are to be presented). Each Holder whose Securities are repurchased pursuant
to this Section 8.01 shall receive the same percentages of cash, shares of Common Stock and
Acquiror Securities in payment of the Fundamental Change Repurchase Price for such Securities,
except with regard to the payment of cash in lieu of fractional shares of Common Stock or Acquiror
Securities. The Company may not change its election with respect to the consideration (or
components or percentages of components thereof) to be paid once the Company has given its
Fundamental Change Company Notice to Holders except in the event of a failure to satisfy, prior to
the close of business on the Business Day prior to the Fundamental Change Repurchase Date, any
condition to the payment of the Fundamental Change Repurchase Price, in whole or in part, in shares
of Common Stock or Acquiror Securities.



        The Company shall, at least three Business Days prior to delivering the Fundamental Change
Company Notice, deliver an Officers’ Certificate to the Trustee specifying:




     (i) the manner of payment selected by the Company,




     (ii) the information required by the Fundamental Change Company Notice pursuant to
Section 8.01(b),




     (iii) if the Company elects to pay the Fundamental Change Repurchase Price, or a
specified percentage thereof, in shares of Common Stock or Acquiror Securities, that the
conditions to such manner of payment set forth in this Section 8.01(e) have been or will
be complied with, and




     (iv) whether the Company desires the Trustee to give the Fundamental Change Company
Notice required by Section 8.01(b).



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     The Company’s right to exercise its election to repurchase Securities through the delivery of
shares of Common Stock or Acquiror Securities shall be conditioned upon:




     (i) the Company’s giving a timely Fundamental Change Company Notice containing an
election to purchase all or a specified percentage of the Securities with shares of Common
Stock or Acquiror Securities as provided herein;




     (ii) the registration of such shares of Common Stock or Acquiror Securities under the
Securities Act and, if required, the Exchange Act;




     (iii) the listing of such shares of Common Stock or Acquiror Securities on a United
States national securities exchange or the quotation of such shares of Common Stock or
Acquiror Securities in an inter-dealer quotation system of any registered United States
national securities association, in each case, if the Common Stock or Acquiror Securities,
as applicable, are then listed on a national securities exchange or quoted in an
inter-dealer quotation system;




     (iv) any necessary qualification or registration of such shares of Common Stock or
Acquiror Securities under applicable state securities laws or the availability of an
exemption from such qualification and registration; and




     (v) the receipt by the Trustee of (1) an Officers’ Certificate stating that the terms
of the issuance of the shares of Common Stock or Acquiror Securities are in conformity
with this Indenture, (2) an Opinion of Counsel to the effect that the shares of Common
Stock or Acquiror Securities to be delivered in payment of the Fundamental Change
Repurchase Price in respect of the Securities have been duly authorized and, when issued
and delivered pursuant to the terms of this Indenture in payment of the Fundamental Change
Repurchase Price in respect of the Securities, will be validly issued, fully paid and
non-assessable and (3) an Officer’s Certificate, stating that the conditions to the
issuance of the shares of Common Stock or Acquiror Securities have been satisfied.



     Such Officers’ Certificate shall also set forth the Last Reported Sale Price of a share of
Common Stock or Acquiror Securities, as applicable, on each Trading Day during the period
commencing on the fifth Trading Day immediately preceding but ending on the third Business Day
prior to the applicable Fundamental Change Repurchase Date. If the foregoing conditions are not
satisfied prior to the close of business on the Business Day immediately preceding the Fundamental
Change Repurchase Date and the Company has elected to



69









 







repurchase the Securities through the issuance of shares of Common Stock or the delivery of
Acquiror Securities, the Company shall pay the entire Fundamental Change Repurchase Price of the
Securities in cash.



     Promptly after determination of the actual number of shares of Common Stock or Acquiror
Securities to be issued upon repurchase of Securities, the Company shall be required to disseminate
a press release through Dow Jones & Company, Inc. or Bloomberg Business News containing the
information required by the Fundamental Change Company Notice or shall publish the information on
the Company’s website or through such other public medium as the Company may use at that time.



     All shares of Common Stock and Acquiror Securities delivered upon repurchase of the Securities
shall be duly authorized, validly issued, fully paid and nonassessable.



     If a Holder of a repurchased Security is paid in shares of Common Stock or Acquiror
Securities, the Company shall pay any documentary, stamp or similar issue or transfer tax due on
such issue of Common Stock. However, the Holder shall pay any such tax that is due because the
Holder requests that the Common Stock or Acquiror Securities be issued in a name other than the
Holder’s name. The Trustee (or other Paying Agent appointed by the Company) may refuse to deliver
the certificates representing the shares of Common Stock or Acquiror Securities being issued in a
name other than the Holder’s name until the Trustee (or other paying agent appointed by the
Company) receives a sum sufficient to pay any tax that will be due because the shares of Common
Stock are to be issued in a name other than the Holder’s name. Nothing herein shall preclude any
income tax withholding required by law or regulations.



     Section 8.02. Effect of Fundamental Change Repurchase Notice. Upon receipt by the Paying
Agent of the Fundamental Change Repurchase Notice specified in Section 8.01(a), the Holder of the
Security in respect of which such Fundamental Change Repurchase Notice was given shall (unless such
Fundamental Change Repurchase Notice is withdrawn as specified in the following two paragraphs)
thereafter be entitled to receive solely the Fundamental Change Repurchase Price with respect to
such Security. Such Fundamental Change Repurchase Price shall be paid to such Holder, subject to
receipt of funds by the Paying Agent, promptly following the later of (x) the Fundamental Change
Repurchase Date with respect to such Security (provided the conditions in Section 8.01(a) have been
satisfied) and (y) the time of delivery of such Security to the Paying Agent by the Holder thereof
in the manner required by Section 8.01(b).



70









 





     Section 8.03. Withdrawal of Fundamental Change Repurchase Notice.



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




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




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




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


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




     Section 8.04. Deposit of Fundamental Change Repurchase Price. Prior to 10:00 a.m. (local
time in The City of New York) on the Fundamental Change Repurchase 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 as provided herein)
an amount of money (in immediately available funds if deposited on such Business Day) or Common
Stock or Acquiror Securities, if permitted hereunder, sufficient to pay the Fundamental Change
Repurchase Price, of all the Securities or portions thereof that are to be repurchased as of the
Fundamental Change Repurchase Date. The Company shall promptly notify the Trustee in writing of
the amount of any deposits of cash, Common Stock or Acquiror Securities made pursuant to this
Section 8.04. If the Paying Agent holds cash, Common Stock or Acquiror Securities sufficient to
pay the Fundamental Change Repurchase Price of any Security for which a Fundamental Change
Repurchase Notice has been tendered and not withdrawn in accordance with this Indenture as of the
close of business on the Business Day prior to the Fundamental Change Repurchase Date, then
immediately following the Fundamental Change Repurchase Date, (a) such Security will cease to be
outstanding and Interest will cease to accrue thereon and (b) all other rights of the Holder in
respect thereof will terminate (other than the right to receive the Fundamental Change Repurchase
Price and previously accrued and unpaid Interest upon delivery or transfer of such Security).



71









 





     Section 8.05. Securities Repurchased in Whole or in Part. Any Security that is to be
repurchased, whether in whole or in part, shall be surrendered at the office of the Paying Agent
(with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of
transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof
or such Holder’s attorney duly authorized in writing) and the Company shall execute and the Trustee
shall authenticate and deliver to the Holder of such Security, without service charge, a new
Security or Securities, of any authorized denomination as requested by such Holder in aggregate
Principal Amount equal to, and in exchange for, the portion of the Principal Amount of the Security
so surrendered which is not repurchased.



     Section 8.06. Covenant to Comply With Securities Laws Upon Repurchase of Securities. In
connection with any offer to repurchase Securities under Section 8.01 (provided that such offer or
repurchase 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 repurchase), the Company shall (i) comply with Rule 13e-4 and Rule 14e-1 under the Exchange Act,
(ii) file the related Schedule TO (or any successor schedule, form or report) under the Exchange
Act, and (iii) otherwise comply with all Federal and state securities laws so as to permit the
rights and obligations under Section 8.01 to be exercised in the time and in the manner specified
in Section 8.01.



     Section 8.07. Repayment to the Company. The Trustee and the Paying Agent shall return to
the Company any cash that remains unclaimed, together with interest or dividends, if any, thereon,
held by them for the payment of the Fundamental Change Repurchase Price; provided that to the
extent that the aggregate amount of cash, Common Stock and/or Acquiror Securities deposited by the
Company pursuant to Section 8.04 exceeds the aggregate Fundamental Change Repurchase Price of the
Securities or portions thereof which the Company is obligated to repurchase as of the Fundamental
Change Repurchase Date, then as soon as practicable following the Fundamental Change Repurchase
Date, the Trustee or the Paying Agent, as the case may be, shall return any such excess to the
Company.



ARTICLE 9

Conversion




     Section 9.01. Conversion Obligation.



     (a) Upon compliance with the provisions of this Article 9, a Holder shall have the right, at
such Holder’s option, to convert all or any portion (if the portion to be converted is in a
Principal Amount of $1,000 or an integral multiple



72









 







thereof) of such Security at any time prior to the close of business on the scheduled Trading
Day immediately preceding the Stated Maturity at a rate (the “Conversion Rate”) of 31.7162 shares
of Common Stock (subject to adjustment as provided in this Indenture) per $1,000 Principal Amount
(the “Conversion Obligation”).




(b) (i) If a Holder elects to convert Securities at any time from and after the date
that is 30 Business Days prior to the anticipated effective date of a Make-Whole
Fundamental Change until the Fundamental Change Repurchase Date (or, if there is no
Fundamental Change Repurchase Date because the 105% Exception is applicable, then until 30
Business Days following the date of such Fundamental Change, determined without regard to
the 105% Exception), the Conversion Rate applicable to each $1,000 Principal Amount of
converted Securities shall be increased by an additional number of shares of Common Stock
(the “Additional Shares”) as described below. Settlement of Securities tendered for
conversion to which Additional Shares shall be added to the Conversion Rate as provided in
this subsection shall be settled pursuant to Section 9.02(d) below.




     (ii) The number of Additional Shares by which the Conversion Rate will be increased
shall be determined by reference to the table attached as Exhibit B hereto, based on the
date on which the Make-Whole Fundamental Change occurs or becomes effective (the
“Effective Date”) and the Stock Price; provided that if the actual Stock Price is between
two Stock Price amounts in such table or the Effective Date is between two Effective Dates
in such table, the number of Additional Shares shall be determined by a straight-line
interpolation between the number of Additional Shares set forth for the next higher and
next lower Stock Price amounts and the two nearest Effective Dates, as applicable, based
on a 365-day year; provided further that if (1) the Stock Price is greater than $100.00
per share of Common Stock (subject to adjustment in the same manner as set forth in
Section 9.03), no Additional Shares will be added to the Conversion Rate, and (2) the
Stock Price is less than $26.72 per share (subject to adjustment in the same manner as set
forth in Section 9.03), no Additional Shares will be added to the Conversion Rate.
Notwithstanding the foregoing, in no event will the total number of Additional Shares of
Common Stock issuable upon conversion exceed 5.7089 per $1,000 Principal Amount (subject
to adjustment in the same manner as set forth in Section 9.03).




     (iii) The Stock Prices set forth in the first row of the table in Exhibit B hereto
shall be adjusted as of any date on which the Conversion Rate of the Securities is
adjusted. The adjusted Stock Prices shall equal the Stock Prices applicable immediately
prior to such adjustment,



73









 






multiplied by a fraction, the numerator of which is the Conversion Rate in effect
immediately prior to the adjustment giving rise to the Stock Price adjustment and the
denominator of which is the Conversion Rate as so adjusted. The number of Additional
Shares within the table shall be adjusted in the same manner as the Conversion Rate as set
forth in Section 9.03 (other than by operation of an adjustment to the Conversion Rate by
adding Additional Shares).




     (iv) If at any time the Company obtains knowledge that a Make-Whole Fundamental
Change will occur, then, no later than 30 Business Days prior to the anticipated effective
date of such Make-Whole Fundamental Change (or, in the event that the Company obtains
knowledge of such Make-Whole Fundamental Change less than 30 Business Days before such
anticipated effective date, no later than 3 Business Days after the date on which the
Company obtains such knowledge), the Company shall notify Holders of the Securities, the
Trustee and the Paying Agent of the occurrence and anticipated effective date of such
Make-Whole Fundamental Change and shall disseminate a press release through Reuters
Economic Services and Bloomberg Business News stating that it expects a Make-Whole
Fundamental Change to occur with respect to the Securities and identifying the anticipated
effective date of such Make-Whole Fundamental Change.



      Section 9.02. Conversion Procedure.



     (a) Upon conversion of any Security, subject to this Section 9.02, Section 9.01 and Section
9.06, the Company will satisfy the Conversion Obligation with respect to each $1,000 Principal
Amount of Securities tendered for conversion by delivering either (i) on the fifth Business Day
following the related Conversion Date, shares of fully paid Common Stock equal to the Conversion
Rate or (ii) on the tenth Business Day following the related Conversion Date, cash or a combination
of cash and the Company’s Common Stock as provided in Section 9.02(b) or Section 9.02(c), as
applicable. In either case, the Company will deliver cash in lieu of fractional shares of Common
Stock as set forth pursuant to clause (l) below.



     (b) If any adjustment to the Conversion Rate or conversion of Securities pursuant to this
Article 9 would require the Company to issue shares of Common Stock in excess of the amount
permitted by applicable listing standards of The Nasdaq National Market to be issued without
approval by the Company’s stockholders, the Company shall either (i) obtain the approval of its
stockholders with respect to such issuance or (ii) in lieu of delivering shares of Common Stock in
excess of such limitations, pay cash on a pro rata basis to the Holders of Securities being
converted in an amount per share of Common Stock equal to the Last Reported Sale Price for the
Company’s Common Stock on the Trading Day



74









 







immediately prior to the Conversion Date, as determined by the Company or its agent.



     (c) If there is no Event of Default with respect to the Securities that is continuing, then
the Company may, at its option, in lieu of delivering shares of Common Stock, elect to pay the
Holder surrendering such a Security for conversion an amount of cash equal to the average, as
determined by the Company or its agent, of the Last Reported Sale Price of the Company’s Common
Stock for the five consecutive Trading Days immediately following (i) the date of delivery of
notice of the Company’s election to deliver cash if the Company has not given notice of redemption
with respect to such Security pursuant to Section 7.03, or (ii) the Conversion Date, in the case of
a conversion following the delivery by the Company of a notice of redemption with respect to such
Security pursuant to Section 7.03, specifying that the Company intends to deliver cash upon
conversion, in either case multiplied by the number of shares of Common Stock issuable upon
conversion of such Security on that date. If the Company elects to deliver cash in lieu of Common
Stock, the Company shall inform Holders of such election by delivering an irrevocable written
notice to the Trustee and the Paying Agent prior to the close of business on the second Business
Day after the Conversion Date, unless the Company has already informed Holders of its election by
delivering an irrevocable notice in connection with redemption of the debentures pursuant to
Section 7.03.



     (d) Before any Holder of a Security shall be entitled to convert the same as set forth above,
such Holder shall (1) in the case of a Global Security, comply with the procedures of the
Depositary in effect at that time and, if required, pay funds equal to interest payable on the next
Interest Payment Date to which such Holder is not entitled as set forth in Section 9.02(j) and, if
required pursuant to Section 9.02(g), pay all stamp, transfer or similar taxes or duties, if any,
in connection with such conversion and (2) in the case of a Security issued in certificated form,
(A) complete and manually sign and deliver an irrevocable written notice to the Conversion Agent in
the form on the reverse of such certificated Security (or a facsimile thereof) (a “Notice of
Conversion”) at the office of the Conversion Agent and shall state in writing therein the principal
amount of Securities to be converted and the name or names (with addresses) in which such Holder
wishes the certificate or certificates for any shares of Common Stock, if any, to be delivered upon
settlement of the Conversion Obligation to be registered, (B) surrender such Securities, duly
endorsed to the Company or in blank (and accompanied by appropriate endorsement and transfer
documents), at the office of the Conversion Agent, (C) if required, pay funds equal to interest
payable on the next Interest Payment Date to which such Holder is not entitled as set forth in
Section 9.02(j), and (D) if required pursuant to Section 9.02(g), pay all stamp, transfer or
similar taxes or duties, if any, in connection with such conversion. No Notice of Conversion with
respect to any Securities may be tendered by a Holder thereof if such Holder has also tendered a
Fundamental



75









 







Change Repurchase Notice and not validly withdrawn such Fundamental Change Repurchase Notice
in accordance with Section 8.03.



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



     (e) A Security 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 clause (d). Payment of the shares of Common Stock and cash, if any, pursuant to Section
9.02(a) in satisfaction of the Conversion Obligation shall be made by the Company in no event later
than the date specified in Section 9.02(a) by paying such shares of Common Stock and cash, if any
(in each case, together with any cash in lieu of fractional shares), to the Holder of a Security
surrendered for conversion, or such Holder’s nominee or nominees, and issue, or cause to be issued,
and deliver to the Conversion Agent or to such Holder, or such Holder’s nominee or nominees,
certificates or a book-entry transfer through the Depositary for the number of full shares of
Common Stock to which such Holder shall be entitled as part of such Conversion Obligation.



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



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



76









 





     (h) Except as provided in Section 9.03, no adjustment shall be made for dividends on any
shares issued upon the conversion of any Security as provided in this Article.



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



     (j) Upon conversion, a Securityholder will not receive any separate cash payment for accrued
and unpaid Interest except as set forth below. The Company’s settlement of the Conversion
Obligation as described above shall be deemed to satisfy its obligation to pay the Principal Amount
of the Security and accrued and unpaid Interest to, but not including, the Conversion Date. As a
result, accrued and unpaid Interest to, but not including, the Conversion Date shall be deemed to
be paid in full rather than cancelled, extinguished or forfeited. Notwithstanding the preceding
sentence, payments in respect of accrued and unpaid Interest on Securities converted after the
close of business on a Record Date and prior to the opening of business on the related Interest
Payment Date shall be governed by the provisions of Section 4.01 hereof. Except as described
above, no payment or adjustment will be made for accrued interest on converted Securities.



     (k) The Person in whose name the certificate for such shares of Common Stock is registered
shall be treated as a stockholder of record on and after the Conversion Date; provided, however,
that no surrender of Securities on any date when the stock transfer books of the Company shall be
closed shall be effective to constitute the Person or Persons entitled to receive the shares of
Common Stock upon such conversion as the record holder or holders of such shares of Common Stock on
such date, but such surrender shall be effective to constitute the Person or Persons entitled to
receive such shares of Common Stock as the record holder or holders thereof for all purposes at the
close of business on the next succeeding day on which such stock transfer books are open; such
conversion shall be at the Conversion Rate in effect on the date that such Securities shall have
been surrendered for conversion, as if the stock transfer books of the Company had not been closed.
Upon conversion of Securities, such Person shall no longer be a Securityholder.



     (l) No fractional shares of Common Stock shall be issued upon conversion of any Security or
Securities. If more than one Security 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 Securities (or specified portions thereof) so
surrendered. Instead of any fractional share of Common Stock that would




77










 





otherwise be issued upon conversion of any Security or Securities (or specified portions
thereof), the Company shall pay a cash adjustment in respect of such fraction (calculated to the
nearest one-100th of a share) in an amount equal to the same fraction of the Last Reported Sale
Price of the Common Stock on the related Conversion Date.




     Section 9.03. Adjustment of Conversion Rate. The Conversion Rate shall be adjusted from time
to time by the Company as follows:



     (a) In case the Company shall issue shares of Common Stock as a dividend or distribution to
all holders of the outstanding Common Stock, or shall effect a subdivision into a greater number of
shares of Common Stock or combination into a lesser number of shares of Common Stock, the
Conversion Rate shall be adjusted based on the following formula:













	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to such event;
	 
	 	 	 	 	 	 
	 

	 	CR'
	 	=
	 	the Conversion Rate in effect immediately after such event;
	 
	 	 	 	 	 	 
	 

	 	OS0
	 	=
	 	the number of shares of Common Stock outstanding immediately prior to
such event; and
	 
	 	 	 	 	 	 
	 

	 	OS'
	 	=
	 	the number of shares of Common Stock outstanding immediately after such
event.





Such adjustment shall become effective immediately after 9:00 a.m., New York City time, on the
Business Day following the record date fixed for such determination. The Company will not pay any
dividend or make any distribution on shares of Common Stock held in treasury by the Company. If
any dividend or distribution of the type described in this Section 9.03(a) is declared but not so
paid or made, or the outstanding shares of Common Stock are not subdivided or combined, as the case
may be, the Conversion Rate shall be immediately readjusted, effective as of the date the Board of
Directors determines not to pay such dividend or distribution, or subdivide or combine the
outstanding shares of Common Stock, as the case may be, to the Conversion Rate that would then be
in effect if such dividend, distribution, subdivision or combination had not been declared.




78









 








     (b) In case the Company shall issue to all or substantially all holders of its outstanding
shares of Common Stock rights, warrants or convertible securities entitling them (for a period
expiring within 45 calendar days after the record date fixed for such issuance) to subscribe for or
purchase shares of Common Stock at a price per share less than the Last Reported Sale Price of the
Common Stock on the Business Day immediately preceding the date of announcement of such issuance,
the Conversion Rate shall be adjusted based on the following formula:









where



	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to such event;
	 
	 	 	 	 	 	 
	 

	 	CR'
	 	=
	 	the Conversion Rate in effect immediately after such event;
	 
	 	 	 	 	 	 
	 

	 	OS0
	 	=
	 	the number of shares of Common Stock outstanding immediately prior to
such event;
	 
	 	 	 	 	 	 
	 

	 	X
	 	=
	 	the total number of shares of Common Stock issuable pursuant to such
rights, warrants or convertible securities; and
	 
	 	 	 	 	 	 
	 

	 	Y
	 	=
	 	the number of shares of Common Stock equal to the aggregate price payable
to exercise or convert such rights, warrants or convertible securities divided by the
average of the Last Reported Sale Prices of Common Stock over the ten consecutive
Trading Day period ending on the Business Day immediately preceding the record date
(or, if earlier, the Ex-Dividend Date relating to such distribution) for the issuance
of such rights, warrants or convertible securities.





Such adjustment shall be successively made whenever any such rights, warrants or convertible
securities are issued and shall become effective immediately after 9:00 a.m., New York City time,
on the Business Day immediately preceding the date of announcement of such issuance. The Company
shall not issue any such rights, warrants or convertible securities in respect of shares of Common
Stock held in treasury by the Company. To the extent that shares of Common Stock are not delivered
after the expiration of such rights, warrants or convertible securities, the Conversion Rate shall
be readjusted to the Conversion Rate that would then be in effect had the adjustments made upon the
issuance of such rights, warrants or convertible securities been made on the basis of delivery of
only the number of shares of Common Stock actually delivered. If such rights, warrants or


79









 






convertible securities are not so issued, the Conversion Rate shall again be adjusted to be the
Conversion Rate that would then be in effect if such record date for such distribution had not been
fixed.



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




     (c) In case the Company shall, by dividend or otherwise, distribute to all or substantially
all holders of its Common Stock shares of any class of Capital Stock of the Company (other than
Common Stock as covered by Section 9.03(a)), evidences of its indebtedness or other assets or
property of the Company (including securities, but excluding dividends and distributions covered by
Section 9.03(b), Section 9.03(d), Section 9.03(e) or Section 9.06) (any of such shares of Capital
Stock, indebtedness, or other asset or property hereinafter in this Section 9.03(c) called the
“Distributed Property”), then, in each such case the Conversion Rate shall be adjusted based on the
following formula:









where



	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to such distribution;
	 
	 	 	 	 	 	 
	 

	 	CR'
	 	=
	 	the Conversion Rate in effect immediately after such distribution;
	 
	 	 	 	 	 	 
	 

	 	SP0
	 	=
	 	the average of the Last Reported Sale Prices of the Common Stock over the
ten consecutive Trading Day period ending on the Business Day immediately preceding
the record date for such distribution (or, if earlier, the Ex-Dividend Date relating
to such distribution); and
	 
	 	 	 	 	 	 
	 

	 	FMV
	 	=
	 	the fair market value (as determined by the Company’s Board of Directors)
of the shares of Capital Stock, evidences of indebtedness, assets or property
distributed with respect to each outstanding share of Common Stock on the record date
for such distribution (or, if earlier, the Ex-Dividend Date relating to such
distribution).






80









 





Such adjustment shall become effective immediately prior to 9:00 a.m., New York City time, on the
Business Day following the date fixed for the determination of stockholders entitled to receive
such distribution. If such dividend or distribution is not so paid or made, the Conversion Rate
shall again be adjusted to be the Conversion Rate that would then be in effect if such dividend or
distribution had not been declared. If the Board of Directors determines the fair market value of
any distribution for purposes of this Section 9.03(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 average of the Last Reported Sale Prices prior to the applicable
record date.



With respect to an adjustment pursuant to this Section 9.03(c) where there has been a payment of a
dividend or other distribution on the Common Stock or shares of Capital Stock of any class or
series, or similar equity interest, of or relating to a Subsidiary or other business unit (a
“Spin-Off”), the Conversion Rate in effect immediately before 5:00 p.m., New York City time, on the
record date fixed for determination of stockholders entitled to receive the distribution will be
increased based on the following formula:










where



	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to such distribution;
	 
	 	 	 	 	 	 
	 

	 	CR'
	 	=
	 	the Conversion Rate in effect immediately after such distribution;
	 
	 	 	 	 	 	 
	 

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

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





Such adjustment shall occur on the tenth Trading Day from, and including, the effective date of the
Spin-Off.




     Rights or warrants distributed by the Company to all holders of Common Stock entitling the
holders thereof to subscribe for or purchase shares of the



81









 







Company’s Capital Stock (either
initially or under certain circumstances), which rights or warrants, until the occurrence of a
specified event or events (“Trigger Event”): (i) are deemed to be transferred with such shares of
Common Stock; (ii) are not exercisable; and (iii) are also issued in respect of future issuances of
Common Stock, shall be deemed not to have been distributed for purposes of this Section 9.03 (and
no adjustment to the Conversion Rate under this Section 9.03 will be required) until the occurrence
of the earliest Trigger Event, whereupon such rights and warrants shall be deemed to have been
distributed and an appropriate adjustment (if any is required) to the Conversion Rate shall be made
under this Section 9.03(c). If any such right or warrant, including any such existing rights or
warrants distributed prior to the date of this Indenture, are subject to events, upon the
occurrence of which such rights or warrants become exercisable to purchase different securities,
evidences of indebtedness or other assets, then the date of the occurrence of any and each such
event shall be deemed to be the date of distribution and record date with respect to new rights or
warrants with such rights (and a termination or expiration of the existing rights or warrants
without exercise by any of the holders thereof). In addition, in the event of any distribution (or
deemed distribution) of rights or warrants, or any Trigger Event or other event (of the type
described in the preceding sentence) with respect thereto that was counted for purposes of
calculating a distribution amount for which an adjustment to the Conversion Rate under this Section
9.03 was made, (1) in the case of any such rights or warrants that shall all have been redeemed or
repurchased without exercise by any holders thereof, the Conversion Rate shall be readjusted upon
such final redemption or repurchase to give effect to such distribution or Trigger Event, as the
case may be, as though it were a cash distribution, equal to the per share redemption or repurchase
price received by a holder or holders of Common Stock with respect to such rights or warrants
(assuming such holder had retained such rights or warrants), made to all holders of Common Stock as
of the date of such redemption or repurchase, and (2) in the case of such rights or warrants that
shall have expired or been terminated without exercise by any holders thereof, the Conversion Rate
shall be readjusted as if such rights and warrants had not been issued.



     For purposes of this Section 9.03(c), Section 9.03(a), and Section 9.03(b), any dividend or
distribution to which this Section 9.03(c) is applicable that also includes shares of Common Stock,
or rights or warrants to subscribe for or purchase shares of Common Stock to which Section 9.03(b)
applies (or both), shall be deemed instead to be (1) a dividend or distribution of the evidences of
indebtedness, assets or shares of Capital Stock other than such shares of Common Stock or rights or
warrants to which Section 9.03(b) applies (and any Conversion Rate adjustment required by this
Section 9.03(c) with respect to such dividend or distribution shall then be made) immediately
followed by (2) a dividend or distribution of such shares of Common Stock or such rights or
warrants (and any further Conversion Rate adjustment required by Section 9.03(a) and Section



82









 







9.03(b) with respect to such dividend or distribution shall then be made), except (A) the record
date of such dividend or distribution shall be substituted as “the record date”, “the date fixed
for the determination of stockholders entitled to receive such rights or warrants” and “the date
fixed for such determination” within the meaning of Section 9.03(a) and Section 9.03(b) and (B) any
shares of Common Stock included in such dividend or distribution shall not be deemed “outstanding
at the close of business immediately prior to such event” within the meaning of Section 9.03(a).



     (d) In case the Company shall pay a dividend or make a distribution consisting exclusively of
cash to all or substantially all holders of its Common Stock that is not designated as an
Extraordinary Dividend payable to Securityholders, the Conversion Rate shall be adjusted based on
the following formula:









where



	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to the record date for
such distribution;
	 
	 	 	 	 	 	 
	 

	 	CR'
	 	=
	 	the Conversion Rate in effect immediately after the record date for such
distribution;
	 
	 	 	 	 	 	 
	 

	 	SP0
	 	=
	 	the Last Reported Sale Prices of the Common Stock on the Trading Day
immediately preceding the record date for such distribution (or, if earlier, the
Ex-Dividend Date relating to such distribution); and
	 
	 	 	 	 	 	 
	 

	 	C
	 	=
	 	the amount in cash per share the Company distributes to holders of Common
Stock in excess of $0.10 per fiscal quarter, appropriately adjusted from time to time
as necessary for any share dividends on, or subdivisions or combinations of, the
Company’s Common Stock.





Such adjustment shall become effective immediately after 5:00 p.m., New York City time, on the
record date for such dividend or distribution. If such dividend or distribution is not so paid or
made, the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in
effect if such dividend or distribution had not been declared.




     For the avoidance of doubt, for purposes of this Section 9.03(d), in the event of any
reclassification of the Common Stock, as a result of which the



83









 







Securities become convertible into
more than one class of Common Stock, if an adjustment to the Conversion Rate is required pursuant
to this Section 9.03(d), references in this Section to one share of Common Stock or Last Reported
Sale Price of one share of Common Stock shall be deemed to refer to a unit or to the price of a
unit consisting of the number of shares of each class of Common Stock into which the Securities are
then convertible equal to the numbers of shares of such class issued in respect of one share of
Common Stock in such reclassification. The above provisions of this paragraph shall similarly
apply to successive reclassifications.



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









where



	 	 	 	 	 	 	 
	 

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

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

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

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

	 	OS'
	 	=
	 	the number of shares of Common Stock outstanding immediately after the
date such tender or exchange offer expires (not including any purchased shares); and
	 
	 	 	 	 	 	 
	 

	 	SP'
	 	=
	 	the average of the Last Reported Sale Prices of Common Stock over the ten
consecutive Trading Day period






84









 






	 	 	 	 	 	 	 
	 

	 	 	 	 	 	commencing on the Trading Day next succeeding the date such tender or exchange offer expires,





such adjustment to become effective immediately prior to the opening of business on the day
following the last date on which tenders or exchanges may be made pursuant to such tender or
exchange offer. If the Company is obligated to purchase shares pursuant to any such tender or
exchange offer, but the Company is permanently prevented by applicable law from effecting any such
purchases or all such purchases are rescinded, the Conversion Rate shall again be adjusted to be
the Conversion Rate that would then be in effect if such tender or exchange offer had not been
made.




     (f) For purposes of this Section 9.03 the term “record date” shall mean, with respect to any
dividend, distribution or other transaction or event in which the holders of Common Stock have the
right to receive any cash, securities or other property or in which the Common Stock (or other
applicable security) is exchanged for or converted into any combination of cash, securities or
other property, the date fixed for determination of stockholders entitled to receive such cash,
securities or other property (whether such date is fixed by the Board of Directors or by statute,
contract or otherwise).



     (g) In addition to those required by clauses (a), (b), (c), (d) or (e) of this Section 9.03,
and to the extent permitted by applicable law and subject to the applicable rules of The Nasdaq
National Market, the Company from time to time may increase the Conversion Rate by any amount for a
period of at least 20 days if the Company’s Board of Directors determines that such increase would
be in the Company’s best interest. In addition, the Company may also (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 any dividend or distribution of shares (or
rights to acquire shares) or similar event. Whenever the Conversion Rate is increased pursuant to
the preceding sentence, the Company shall mail to the Holder of each Security at such Holder’s last
address appearing on the Security Register provided for in Section 3.05 a notice of the increase at
least fifteen 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) All calculations and other determinations under this Article 9 shall be made by the
Company or its agents and shall be made to the nearest cent or to the nearest one-ten thousandth
(1/10,000) of a share, as the case may be. No adjustment shall be made for the Company’s issuance
of Common Stock or convertible or exchangeable securities or rights to purchase Common Stock or
convertible or exchangeable securities, other than as provided in this Section 9.03. No adjustment
shall be made to the Conversion Rate unless such adjustment would require a change of at least 1%
in the Conversion Rate then in effect at



85









 







such time. Any adjustment that would otherwise be
required to be made shall be carried forward and taken into account in any subsequent adjustment or
in connection with any conversion of Securities following a notice of redemption, upon a
Fundamental Change or at Maturity, as applicable.



     (i) 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 Conversion Rate after such adjustment and setting forth a brief statement of the
facts requiring such adjustment. Unless and until a Responsible Officer of the Trustee and the
Conversion Agent shall have received such Officers’ Certificate, neither the Trustee nor the
Conversion Agent shall be deemed to have knowledge of any adjustment of the Conversion Rate and may
assume without inquiry that the last Conversion Rate of which a Responsible Officer of the Trustee
or the Conversion Agent, as applicable, has actual knowledge is still in effect. Promptly after
delivery of such certificate, the Company shall prepare a notice of such adjustment of the
Conversion Rate setting forth the adjusted Conversion Rate and the date on which each adjustment
becomes effective and shall mail such notice of such adjustment of the Conversion Rate to each
Holder at his last address appearing on the Security Register provided for in Section 3.05 of this
Indenture, within 20 days of the effective date of such adjustment. Failure to deliver such notice
shall not affect the legality or validity of any such adjustment.



     (j) In any case in which this Section 9.03 provides that an adjustment shall become effective
immediately after (1) a record date for an event, (2) the date fixed for the determination of
stockholders entitled to receive a dividend or distribution pursuant to Section 9.03(a), (3) a date
fixed for the determination of stockholders entitled to receive rights or warrants pursuant to
Section 9.03(b), or (4) the expiration date for any tender or exchange offer pursuant to Section
9.03(e) (each an “Adjustment Determination Date”), the Company may elect to defer until the
occurrence of the applicable Adjustment Event (as hereinafter defined) (x) issuing to the Holder of
any Security converted after such Adjustment Determination Date and before the occurrence of such
Adjustment Event, the additional shares of Common Stock or other securities issuable upon such
conversion by reason of the adjustment required by such Adjustment Event over and above the Common
Stock issuable upon such conversion before giving effect to such adjustment and (y) paying to such
Holder any amount in cash in lieu of any fraction pursuant to Section 9.03. For purposes of this
Section 9.03(j), the term “Adjustment Event” shall mean:




     (i) in any case referred to in clause (1) hereof, the occurrence of such event,




     (ii) in any case referred to in clause (2) hereof, the date any such dividend or
distribution is paid or made,



86









 






     (iii) in any case referred to in clause (3) hereof, the date of expiration of such
rights or warrants, and




     (iv) in any case referred to in clause (4) hereof, the date a sale or exchange of
Common Stock pursuant to such tender or exchange offer is consummated and becomes
irrevocable.



     (k) For purposes of this Section 9.03, the number of shares of Common Stock at any time
outstanding shall not include shares held in the treasury of the Company but shall include shares
issuable in respect of scrip certificates issued in lieu of fractions of shares of Common Stock.
The Company will not pay any dividend or make any distribution on shares of Common Stock held in
the treasury of the Company.



     Section 9.04. Shares to Be Fully Paid. The Company shall provide, free from preemptive
rights, out of its authorized but unissued shares or shares held in treasury, sufficient shares of
Common Stock to provide for conversion of the Securities from time to time as such Securities are
presented for conversion.



     Section 9.05. Conversion After a Public Acquiror Change of Control.



     (a) In the event of a Public Acquiror Change of Control, the Company may, in lieu of
increasing the Conversion Rate by Additional Shares pursuant to Section 9.01, elect (subject to the
satisfaction of the provisions of this Section 9.05) to adjust the Conversion Rate and the related
Conversion Obligation such that from and after the Effective Date of such Public Acquiror Change of
Control, Holders will be entitled to convert their Securities, in accordance with Section 9.01
hereof, into a number of shares of Public Acquiror Common Stock by adjusting the Conversion Rate in
effect immediately before the Public Acquiror Change of Control by multiplying it by a fraction:




     (i) the numerator of which will be (A) in the case of a share exchange,
consolidation, merger or binding share exchange, pursuant to which the Common Stock is
converted into cash, securities or other property, the average value of all cash and any
other consideration (as determined by the Company’s Board of Directors in the manner
contemplated by Section 9.03(c)) paid or payable per share of Common Stock or (B) in the
case of any other Public Acquiror Change of Control, the average of the Last Reported Sale
Prices of the Common Stock for the five consecutive Trading Days prior to but excluding
the Effective Date of such Public Acquiror Change of Control; and




     (ii) the denominator of which will be the average of the Last Reported Sale Prices of
the Public Acquiror Common Stock for the five



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consecutive Trading Days commencing on the
Trading Day next succeeding the Effective Date of such Public Acquiror Change of Control.



     (b) In order to make the election pursuant to this Section 9.05, the Company and the issuer of
the Public Acquiror Common Stock shall execute with the Trustee a supplemental indenture (which
shall comply with the Trust Indenture Act as in force at the date of execution of such supplemental
indenture) providing that each Security shall be exchangeable into Public Acquiror Common Stock and
execute an amendment to the Registration Rights Agreement (to the extent any Registrable Securities
(as defined therein) remain outstanding) to make the provisions thereof to apply to the Public
Acquiror Common Stock. Such supplemental indenture shall provide for provisions and adjustments
which shall be a nearly equivalent as may be practicable to the provisions and adjustments provided
for in this Article 9.



     (c) The Company will provide notice to Holders of its election to adjust the Conversion Rate
pursuant to this Section 9.05 in the notice delivered with respect to the Make-Whole Fundamental
Change that constitutes a Public Acquiror Change of Control pursuant to Section 9.01(b)(iv).



     Section 9.06. Effect of Reclassification, Consolidation, Merger or Sale.



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



     (a) the Company or the successor or purchasing corporation, as the case may be, shall execute
with the Trustee a supplemental indenture (which shall comply with the Trust Indenture Act as in
force at the date of execution of such supplemental indenture if such supplemental indenture is
then required to so comply) permitted under Section 15.01 providing for the conversion and
settlement of the Securities as set forth in this Indenture. Such supplemental indenture shall
provide for Conversion Rate adjustments which shall be as nearly equivalent as may be practicable
to the adjustments provided for in this Article 9. If, in the case of any Merger Event, the
Reference Property 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,



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consolidation, merger, combination, sale or conveyance, then such supplemental indenture shall also
be executed by such other corporation and shall contain such additional provisions to protect the
interests of the Holders as the Board of Directors shall reasonably consider necessary by reason of
the foregoing, including to the extent required by the Board of Directors and practicable the
provisions providing for the repurchase rights set forth in Article 8 herein.



     In the event the Company shall execute a supplemental indenture pursuant to this Section 9.06,
the Company shall promptly file with the Trustee an Officers’ Certificate briefly stating the
reasons therefore, the kind or amount of cash, securities or property or asset that will
constitute the Reference Property after any such Merger Event, any adjustment to be made with
respect thereto and that all conditions precedent have been complied with, and shall promptly mail
notice thereof to all Securityholders.



     (b) Notwithstanding the provisions of Section 9.02(a), and subject to the provisions of
Section 9.01, at the effective time of such Merger Event, the right to convert each $1,000
principal amount of Securities will be changed to a right to convert such Security into the kind
and amount of shares of cash, securities or other property or assets that a holder of a number of
shares of Common Stock equal to the Conversion Rate immediately prior to such transaction would
have owned or been entitled to receive (the “Reference Property”). In such a case, any increase in
the Conversion Rate by Additional Shares as set forth in Section 9.01 shall not be payable in
shares of Common Stock, but shall represent a right to receive the aggregate amount of Reference
Property into which the Additional Shares would convert in the transaction from the surviving
entity (or an indirect or direct parent thereof). For purposes of determining the constitution of
Reference Property, the type and amount of consideration that a holder of Common Stock would have
been entitled to in the case of reclassifications, consolidations, mergers, sales or conveyance of
assets or other transactions that cause the Common Stock to be converted into the right to receive
more than a single type of consideration (determined based in part upon any form of stockholder
election) will be deemed to be the weighted average of the types and amounts of consideration
received by the holders of Common Stock that affirmatively make such an election. The Company
shall not become a party to any such transaction unless its terms are consistent with the
preceding. None of the foregoing provisions shall affect the right of a Holder of Securities to
convert its Securities into Common Stock or cash and shares of Common Stock, if any, as set forth
in Section 9.01 and Section 9.02 prior to the effective date.



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



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



     (e) In the event that the Company elects to adjust the Conversion Rate and Conversion
Obligation as set forth in Section 9.05, the provisions of that Section shall apply rather than the
provisions set forth in this Section 9.06.



     Section 9.07. Certain Covenants.



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



     The Company covenants that all shares of Common Stock issued upon conversion of Securities
will be fully paid and non-assessable by the Company and free from all taxes, liens and changes
with respect to the issue thereof.



     (b) The Company covenants that, if any shares of Common Stock to be provided for the purpose
of conversion of Securities hereunder require registration with or approval of any governmental
authority under any federal or state law before such shares may be validly issued upon conversion,
the Company will in good faith and as expeditiously as possible, to the extent then permitted by
the rules and interpretations of the Commission (or any successor thereto), endeavor to secure such
registration or approval, as the case may be.



     (c) The Company further covenants that if at any time the Common Stock shall be listed on any
other national securities exchange or automated quotation system the Company will, if permitted and
required by the rules of such exchange or automated quotation system, list and keep listed, so long
as the Common Stock shall be so listed on such exchange or automated quotation system, all Common
Stock issuable upon conversion of the Securities.



     Section 9.08. Responsibility of Trustee. The Trustee and any other Conversion Agent shall
not at any time be under any duty or responsibility to any Securityholder to determine the
Conversion Rate or whether any facts exist which may require any adjustment of the Conversion Rate,
or with respect to the nature or extent or calculation of any such adjustment when made, or with
respect to the method employed, or herein or in any supplemental indenture provided to be employed,
in making the same. The Trustee and any other Conversion Agent shall not be accountable with
respect to the validity or value (or the kind or amount) of any shares of Common Stock, or of any
securities or property, which may at any time be issued or delivered upon the conversion of any
Security; and



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the Trustee and any other Conversion Agent make no representations with respect
thereto. Neither the Trustee nor any Conversion Agent shall be responsible for any failure of the
Company to issue, transfer or deliver any shares of Common Stock or stock certificates or other
securities or property or cash upon the surrender of any Security for the purpose of conversion or
to comply with any of the duties, responsibilities or covenants of the Company contained in this
Article. Without limiting the generality of the foregoing, neither the Trustee nor any Conversion
Agent shall be under any responsibility to determine the correctness of any provisions contained in
any supplemental indenture entered into pursuant to Section 9.06 relating either to the kind or
amount of shares of stock or securities or property (including cash) receivable by Securityholders
upon the conversion of their Securities after any event referred to in such Section 9.06 or to any
adjustment to be made with respect thereto, but, subject to the provisions of Section 12.01, may
accept as conclusive evidence of the correctness of any such provisions, and shall be protected in
relying upon, the Officers’ Certificate (which the Company shall be obligated to file with the
Trustee prior to the execution of any such supplemental indenture) with respect thereto.



     Section 9.09. Notice to Holders Prior to Certain Actions. In case:




     (a) the Company shall declare a dividend (or any other distribution) on its Common
Stock that would require an adjustment in the Conversion Rate pursuant to Section 9.03; or




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




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




     (d) of the voluntary or involuntary dissolution, liquidation or winding-up of the
Company;


the Company shall cause to be filed with the Trustee and to be mailed to each Securityholder at his
address appearing on the Security Register, provided for in Section 3.05 of this Indenture, as
promptly as possible but in any event at least twenty days prior to the applicable date hereinafter
specified, a notice stating (x) the date on which a record is to be taken for the purpose of such
dividend, distribution or rights or warrants, or, if a record is not to be taken, the date as of


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which the holders of Common Stock of record to be entitled to such dividend, distribution or rights
are to be determined, or (y) the date on which such reclassification, consolidation, merger, sale,
transfer, dissolution, liquidation or winding-up is expected to become effective or occur, and the
date as of which it is expected that holders of Common Stock of record shall be entitled to
exchange their Common Stock for securities or other property deliverable upon such
reclassification, consolidation, merger, sale, transfer, dissolution, liquidation or winding-up.
Failure to give such notice, or any defect therein, shall not affect the legality or validity of
such dividend, distribution, reclassification, consolidation, merger, sale, transfer, dissolution,
liquidation or winding-up.




     Section 9.10. Stockholder Rights Plans. Each share of Common Stock issued upon conversion of
Securities pursuant to this Article 9 shall be entitled to receive the appropriate number of
rights, if any, and the certificates representing the Common Stock issued upon such conversion
shall bear such legends, if any, in each case as may be provided by the terms of any stockholder
rights plan adopted by the Company, as the same may be amended from time to time. If at the time
of conversion, however, the rights have separated from the shares of Common Stock in accordance
with the provisions of the applicable stockholder rights agreement so that the Holders of the
Securities would not be entitled to receive any rights in respect of Common Stock issuable upon
conversion of the Securities, the Conversion Rate will be adjusted at the time of separation as if
the Company has distributed to all holders of Common Stock, shares of Capital Stock of the Company,
evidence of indebtedness or assets as provided in Section 9.03(c), subject to readjustment in the
event of the expiration, termination or redemption of such rights.



     Section 9.11. Alternate Conversion Arrangement. In connection with any conversion of
Securities, the Company may arrange for such conversion by an agreement with one or more financial
institutions or other purchasers to exchange such Securities for shares of the Company’s Common
Stock, cash, or a combination of cash and Common Stock, as applicable, equal to which the Holder of
such Securities is entitled to receive upon conversion. Notwithstanding anything to the contrary
contained in this Article 9, the obligation of the Company to convert such Securities shall be
deemed to be satisfied and discharged to the extent such amount is so paid by such purchasers, and
accrued and unpaid Interest to, but not including, the Conversion Date for such conversion shall be
deemed to be paid in full rather than cancelled, extinguished or forfeited.



ARTICLE 10

Events of Default; Remedies




     Section 10.01. Events of Default. “Event of Default,” wherever used herein, means any one of
the following events (whatever the reason for such



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Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or
order of any court or any order, rule or regulation of any administrative or governmental body):



     (a) default in the payment of Interest on any Securities when due and payable and such default
continues for a period of 30 days; provided, that a extension of the payment period for Interest in
accordance with Article 4 shall not constitute an Event of Default under this Section 10.01(a);



     (b) default in the payment of the Principal Amount, Redemption Price or Fundamental Change
Repurchase Price on any Security when it becomes due and payable;



     (c) default in the Company’s obligation to convert the Securities into shares of its Common
Stock or a cash, as applicable, upon exercise of a Holder’s conversion rights in accordance with
Article 9 hereof and such default continues for a period of 10 days;



     (d) failure by the Company to comply with its obligations under Article 11 hereof;



     (e) failure by the Company to issue a Fundamental Change Company Notice when due;



     (f) default in the performance of any covenant, agreement or condition of the Company in this
Indenture or the Securities (other than a default specified in paragraph (a) or (b) above), and
such default continues for a period of 90 days after there has been given, by registered or
certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of
at least 25% in aggregate Principal Amount of the Outstanding Securities a written notice
specifying such default and requiring it to be remedied and stating that such notice is a “Notice
of Default” hereunder;



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



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     (h) the commencement by the Company of a voluntary case or proceeding under any applicable
federal or state bankruptcy, insolvency, reorganization or other similar law or of any other case
or proceeding to be adjudicated a bankrupt or insolvent, or the consent by it to the entry of a
decree or order for relief in respect of the Company in an involuntary case or proceeding under any
applicable federal or state bankruptcy, insolvency, reorganization or other similar law or to the
commencement of any bankruptcy or insolvency case or proceeding against it, or the filing by it of
a petition or answer or consent seeking reorganization or relief under any applicable federal or
state law, or the consent by it to the filing of such petition or to the appointment of or taking
possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar
official of the Company or of any substantial part of its property, or the making by it of an
assignment for the benefit of creditors, or the admission by it in writing of its inability to pay
its debts generally as they become due, or the taking of corporate action by the Company in
furtherance of any such action.



     Section 10.02. Acceleration of Maturity; Rescission and Annulment. (a) If an Event of
Default (other than those specified in Sections 10.01(g) and 10.01(h)) occurs and is continuing,
then and in every such case the Trustee or the Holders of not less than 25% in aggregate Principal
Amount of the Outstanding Securities may declare the Principal Amount plus accrued and unpaid
Interest on all the Outstanding Securities to be due and payable immediately, by a notice in
writing to the Company (and to the Trustee if given by Holders), and upon any such declaration such
Principal Amount plus accrued and unpaid Interest shall become immediately due and payable.



     Notwithstanding the foregoing, in the case of an Event of Default specified in Section
10.01(g) or Section 10.01(h)), the Principal Amount plus accrued and unpaid Interest on all
Outstanding Securities will ipso facto become due and payable without any declaration or other act
on the part of the Trustee or any Holder.



     (b) At any time after such a declaration of acceleration has been made and before a judgment
or decree for payment of the money due has been obtained by the Trustee as hereinafter in this
Article 10 provided, the Holders of a majority in aggregate Principal Amount of the Outstanding
Securities, by written notice to the Company and the Trustee, may rescind and annul such
declaration and its consequences if:




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




     (ii) all Events of Default, other than the non-payment of the Principal Amount plus
accrued and unpaid Interest on Securities that have



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     become due solely by such declaration
of acceleration, have been cured or waived as provided in Section 10.12.



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



     Section 10.03. Collection of Indebtedness and Suits for Enforcement by Trustee. The Company
covenants that if a Default is made in the payment of the Principal Amount plus accrued and unpaid
Interest at the Maturity thereof or in the payment of the Redemption Price or the Fundamental
Change Repurchase Price in respect of any Security, the Company will, upon demand of the Trustee,
pay to it, for the benefit of the Holders of such Securities, the whole amount then due and payable
on such Securities, and, in addition thereto, such further amount as shall be sufficient to cover
the costs and expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel.



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



     Section 10.04. Trustee May File Proofs of Claim. In case of any judicial proceeding relative
to the Company (or any other obligor upon the Securities), its property or its creditors, the
Trustee shall be entitled and empowered, by intervention in such proceeding or otherwise, to take
any and all actions authorized under the Trust Indenture Act in order to have claims of the Holders
and the Trustee allowed in any such proceeding. In particular, the Trustee shall be authorized to
collect and receive any moneys or other property payable or deliverable on any such claims and to
distribute the same; and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by each Holder to make
such payments to the Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel and any
other amounts due the Trustee under Section 12.07.



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



     Section 10.05. Application of Money Collected. Any money collected by the Trustee pursuant
to this Article shall be applied in the following order, at the date or dates fixed by the Trustee
and, in case of the distribution of such money to Holders, upon presentation of the Securities and
the notation thereon of the payment if only partially paid and upon surrender thereof if fully
paid:




     FIRST: To the payment of all amounts due the Trustee under Section 12.07; and




     SECOND: To the payment of the amounts then due and unpaid on the Securities for the
Principal Amount, Redemption Price, Fundamental Change Repurchase Price or Interest, as
the case may be, in respect of which or for the benefit of which such money has been
collected, ratably, without preference or priority of any kind, according to the amounts
due and payable on such Securities.



     Section 10.06. Limitation on Suits. No Holder of any Security shall have any right to
institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the
appointment of a receiver or trustee, or for any other remedy hereunder (other than in the case of
an Event of Default specified in Section 10.01(a) or 10.01(b)), unless:




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




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




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




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



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


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




     Section 10.07. Unconditional Right of Holders to Receive Payment. Notwithstanding any other
provision of this Indenture, the right of any Holder to receive payment of the Principal Amount,
Redemption Price, Fundamental Change Repurchase Price or Interest in respect of the Securities held
by such Holder, on or after the respective due dates expressed in the Securities or any Redemption
Date or Fundamental Change Purchase Date, as applicable, and to convert the Securities in
accordance with Article 9, 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 10.08. Restoration of Rights and Remedies. If the Trustee or any Holder has
instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding
has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee
or to such Holder, then and in every such case, subject to any determination in such proceeding,
the Company, the Trustee and the Holders shall be restored severally and respectively to their
former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders
shall continue as though no such proceeding had been instituted.



     Section 10.09. Rights and Remedies Cumulative. Except as otherwise provided with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Securities in the last paragraph
of Section 3.06, no right or remedy herein conferred upon or reserved to the Trustee or to the
Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall,
to the extent permitted by law, be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.



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     Section 10.10. Delay or Omission Not Waiver. No delay or omission of the Trustee or of any
Holder of any Security to exercise any right or remedy accruing upon any Event of Default shall
impair any such right or remedy or constitute a waiver of any such Event of Default or an
acquiescence therein. Every right and remedy given by this Article or by law to the Trustee or to
the Holders may be exercised from time to time, and as often as may be deemed expedient, by the
Trustee or by the Holders, as the case may be.



     Section 10.11. Control by Holders. The Holders of a majority in Principal Amount of the
Outstanding Securities shall have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee or exercising any trust or power conferred on
the Trustee, provided that:




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




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



     Section 10.12. Waiver of Past Defaults. The Holders of not less than a majority in Principal
Amount of the Outstanding Securities may on behalf of the Holders of all the Securities waive any
past Default hereunder and its consequences, except a Default:




     (i) Described in Section 10.01(a) or (b); or




     (ii) in respect of a covenant or provision hereof which under Article 15 cannot be
modified or amended without the consent of the Holder of each Outstanding Security
affected.



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



     Section 10.13. Undertaking for Costs. In any suit for the enforcement of any right or remedy
under this Indenture or in any suit against the Trustee for any action taken or omitted by it as
Trustee, in either case in respect of the Securities, a court may require any party litigant in
such suit to file an undertaking to pay the costs of the suit, and the court may assess reasonable
costs, including reasonable attorney’s fees, against any party litigant in the suit having due
regard to the merits and good faith of the claims or defenses made by the party litigant; but the
provisions of this Section 10.13 shall not apply to any suit instituted by the Company, to any suit
instituted by the Trustee, to any suit instituted by any



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



     Section 10.14. Waiver of Stay or Extension Laws. The Company covenants (to the extent that
it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay, or extension law wherever enacted,
now or at any time hereafter in force, which may affect the covenants or the performance of this
Indenture; and the Company (to the extent that it may lawfully do so) hereby expressly waives all
benefit or advantage of any such law and covenants that it will not hinder, delay or impede the
execution of any power herein granted to the Trustee, but will suffer and permit the execution of
every such power as though no such law had been enacted.



ARTICLE 11

Consolidation, Merger, Conveyance, Transfer Or Lease




     Section 11.01. Company May Consolidate, etc., Only on Certain Terms. The Company shall not
consolidate with or merge into any other Person or convey, transfer or lease its properties and
assets substantially as an entirety to any Person, and the Company shall not permit any Person to
consolidate with or merge into the Company or convey, transfer or lease its properties and assets
substantially as an entirety to the Company, unless:



     (a) either (i) the Company is the resulting, surviving or transferee Person or (ii) the Person
(if other than the Company) formed by such consolidation or into which the Company is merged or the
Person which acquires by conveyance or transfer, or which leases, the properties and assets of the
Company substantially as an entirety (the “Surviving Entity”), (1) is organized and validly
existing under the laws of the United States of America, any State thereof or the District of
Columbia, (2) the Surviving Entity expressly assumes, by an indenture supplemental hereto, executed
and delivered to the Trustee, all of the obligations of the Company under the Securities, this
Indenture and, to the extent that the Company has ongoing obligations pursuant to the Registration
Rights Agreement, the Registration Rights Agreement;



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



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     (c) the Company or the Surviving Entity has 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 11 and Article 15, respectively.



     Section 11.02. Successor Substituted. Upon any consolidation of the Company with, or merger
of the Company into, any other Person or any conveyance, transfer or lease of the properties and
assets of the Company substantially as an entirety in accordance with Section 11.01, the successor
Person formed by such consolidation or into which the Company is merged or to which such
conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise
every right and power of, the Company under this Indenture with the same effect as if such
successor Person had been named as the Company herein, and thereafter, except in the case of a
lease of all or substantially all of the Company’s properties and assets, the predecessor Person
shall be relieved of all obligations and covenants under this Indenture and the Securities.



ARTICLE 12

The Trustee




     Section 12.01. Certain Duties and Responsibilities. The duties and responsibilities of the
Trustee shall be as provided by the Trust Indenture Act. Except during the continuance of an Event
of Default of which a Responsible Officer of the Trustee has actual knowledge, the Trustee
undertakes to perform such duties and only such duties as are specifically set forth in this
Indenture, and no implied covenants or obligations shall be read into this Indenture against the
Trustee. In case an Event of Default of which a Responsible Officer of the Trustee has actual
knowledge with respect to the Securities has occurred (which has not been cured or waived), the
Trustee shall exercise the rights and powers vested in it by this Indenture, and use the same
degree of care and skill in their exercise, as a prudent person would exercise or use under the
circumstances in the conduct of such person’s own affairs. Notwithstanding the foregoing, no
provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise
incur any financial liability in the performance of any of its duties hereunder, or in the exercise
of any of its rights or powers. Whether or not therein expressly so provided, every provision of
this Indenture relating to the conduct or affecting the liability of or affording protection to the
Trustee shall be subject to the provisions of this Section.



     Section 12.02. Notice of Defaults. The Trustee shall give the Holders notice of any Default
hereunder within 90 days after the occurrence thereof; provided, that (except in the case of any
Default in the payment of Principal Amount or Interest on any of the Securities, Redemption Price
or Fundamental



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Change Repurchase Price), the Trustee shall be protected in withholding such notice
if and so long as a Responsible Officer of the Trustee in good faith determines that the
withholding of such notice is in the interest of the Holders of Securities.



     Section 12.03. Certain Rights Of Trustee. Subject to the provisions of Section 12.01:



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



     (b) any request or direction of the Company mentioned herein shall be sufficiently evidenced
by a Company Request or Company Order and any resolution of the Board of Directors of the Company
may be sufficiently evidenced by a Board Resolution;



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



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



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



     (f) the Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document,
but the Trustee, in its discretion, may make such further inquiry or investigation into such facts
or matters as it may see fit; and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and



101









 







premises of the Company,
personally or by agent or attorney at the sole cost of the Company and shall incur no liability or
additional liability of any kind by reason of such inquiry or investigation;



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



     (h) the Trustee shall not be charged with knowledge or required to take notice of any Default
or Event of Default with respect to the Securities unless either (i) a Responsible Officer shall
have actual knowledge of such Default or Event of Default or (ii) written notice of such Default or
Event of Default shall have been given to a Responsible Officer of the Trustee by the Company or
any other obligor on such Securities or by any Holder of such Securities;



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



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



     (k) the Trustee may request that the Company deliver an Officers’ Certificate setting forth
the names of individuals and/or titles of officers authorized at such time to take specified
actions pursuant to this Indenture, which Officers’ Certificate may be signed by any person
authorized to sign an Officers’ Certificate, including any person specified as so authorized in any
such certificate previously delivered and not superseded;



     (l) the permissive rights of the Trustee to take certain actions under or perform any
discretionary act enumerated in this Indenture shall not be construed as a duty unless so specified
herein, and the Trustee shall not be answerable for other than its negligence or willful misconduct
in the performance of such action or act; and



     (m) the Trustee shall not be liable in its individual capacity with respect to any action
taken, suffered or omitted to be taken by it in good faith in accordance with this Indenture or at
the direction of the Holders of a majority in aggregate Principal Amount of the Outstanding
Securities relating to the time,



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method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising or omitting to exercise any trust or power conferred upon
the Trustee, under this Indenture.



     Section 12.04. Not Responsible for Recitals. The recitals contained herein and in the
Securities, except the Trustee’s certificates of authentication, shall be taken as the statements
of the Company, and the Trustee assumes no responsibility for their correctness. The Trustee makes
no representations as to the validity, sufficiency or priority of this Indenture or of the
Securities. The Trustee shall not be accountable for the use or application by the Company of
Securities or the proceeds thereof. Except with respect to the authentication of Securities
pursuant to Section 3.03, the Trustee shall not be responsible for the legality or the validity of
this Indenture or the Securities issued or intended to be issued hereunder.



     Section 12.05. May Hold Securities. The Trustee, any Paying Agent, any Security Registrar or
any other agent of the Company, in its individual or any other capacity, may become the owner or
pledgee of Securities and, subject to Section 12.08 and 12.13, may otherwise deal with the Company
with the same rights it would have if it were not Trustee, Paying Agent, Security Registrar or such
other agent.



     Section 12.06. Money Held in Trust. Money held by the Trustee in trust hereunder need not be
segregated from other funds except to the extent required by law. The Trustee shall be under no
liability for interest on any money received by it hereunder except as otherwise agreed in writing
with the Company.



     Section 12.07. Compensation and Reimbursement. The Company agrees:




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




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




     (iii) to indemnify the Trustee and any predecessor Trustee for, and to hold it
harmless against, any loss, liability or expense including



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taxes (other than taxes based
upon, measured by or determined by the income of the Trustee) incurred without negligence
or willful misconduct on its part, arising out of or in connection with the acceptance or
administration of this trust, including the reasonable costs and expenses of defending
itself against any claim (whether assessed by the Company, by any Holder or any other
Person) or liability in connection with the exercise or performance of any of its powers
or duties hereunder.



     Notwithstanding any other provision of this Indenture to the contrary, in no event shall the
Trustee be liable for special, indirect or consequential loss or damage of any kind whatsoever
(including, but not limited to, lost profits) even if the Trustee has been advised of the
likelihood of such loss or damage and regardless of the form of action.



     The obligations of the Company under this Section 12.07 shall survive the resignation or
removal of the Trustee and the satisfaction and discharge of this Indenture. To secure the
Company’s payment obligations in this Section 12.07, the Trustee shall have a lien prior to the
Securities on all money or property held or collected by the Trustee, except that held in trust to
pay principal on the Securities. Such lien shall survive the resignation or removal of the Trustee
and the satisfaction and discharge of this Indenture. When the Trustee incurs expenses or renders
services after a Default or an Event of Default specified in Sections 10.01(g) or 10.01(h) hereof
occurs, the expenses and the compensation for the services (including the fees and expenses of its
agents and counsel) are intended to constitute expenses of administration under U.S. Code, Title 11
or any other similar foreign, federal or state law for the relief of debtors.



     Section 12.08. Disqualification; Conflicting Interests. If the Trustee has or shall acquire
a conflicting interest within the meaning of the Trust Indenture Act, the Trustee shall either
eliminate such interest or resign, to the extent and in the manner provided by, and subject to the
provisions of, the Trust Indenture Act and this Indenture.



     Section 12.09. Corporate Trustee Required; Eligibility. There shall at all times be a
Trustee hereunder which shall be a Person that is eligible pursuant to the Trust Indenture Act to
act as such and has, or whose parent banking company has, a combined capital and surplus of at
least $50,000,000. If such Person publishes reports of condition at least annually, pursuant to
law or to the requirements of said supervising or examining authority, then for the purposes of
this Section 12.09, the combined capital and surplus of such Person shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition so published. If
at any time the Trustee shall cease to be eligible in accordance with the provisions of this
Section 12.09, it shall resign immediately in the manner and with the effect hereinafter specified
in this Article.



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     Section 12.10. Resignation and Removal; Appointment of Successor. (a) No resignation or
removal of the Trustee and no appointment of a successor Trustee pursuant to this Article 12 shall
become effective until the acceptance of appointment by the successor Trustee under Section 12.11.



     (b) The Trustee may resign at any time by giving written notice thereof to the Company. If an
instrument of acceptance by a successor Trustee shall not have been delivered to the Trustee within
30 days after the giving of such notice of resignation, the resigning Trustee may petition any
court of competent jurisdiction at the expense of the Company for the appointment of a successor
Trustee.



     (c) The Trustee may be removed at any time by Act of the Holders of majority in Principal
Amount of the Outstanding Securities, delivered to the Trustee and to the Company. If an
instrument of acceptance by a successor Trustee shall not have been delivered to the Trustee within
30 days after the notice of removal, the Trustee being removed may petition, at the expense of the
Company, any court of competent jurisdiction for the appointment of a successor Trustee with
respect to the Securities.



     (d) If at any time:




     (i) the Trustee shall fail to comply with Section 12.08 after written request
therefor by the Company or by any Holder who has been a bona fide Holder of a Security for
at least six months, or




     (ii) the Trustee shall cease to be eligible under Section 12.09 and shall fail to
resign after written request therefor by the Company or by any such Holder, or




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




     (iv) a receiver of the Trustee or of its property shall be appointed or any public
officer shall take charge or control of the Trustee or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation,


then, in any such case, (A) the Company by a Company Order may remove the Trustee, or (B) subject
to Section 10.13, any Holder who has been a bona fide Holder of a Security for at least six months
may, on behalf of such Holder and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.




     (e) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy
shall occur in the office of Trustee for any cause, the



105









 







Company, by a Company Order, shall promptly
appoint a successor Trustee. If, within one year after such resignation, removal or incapability,
or the occurrence of such vacancy, a successor Trustee shall be appointed by Act of the Holders of
a majority in Principal Amount of the Outstanding Securities delivered to the Company and the
retiring Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance of such
appointment, become the successor Trustee and supersede the successor Trustee appointed by the
Company. If no successor Trustee shall have been so appointed by the Company or the Holders and
accepted appointment in the manner hereinafter provided, any Holder who has been a bona fide Holder
of a Security for at least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the appointment of a successor Trustee.



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



     Section 12.11. Acceptance of Appointment by Successor. Every successor Trustee appointed
hereunder shall execute, acknowledge and deliver to the Company and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal of the retiring
Trustee shall become effective and such successor Trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring
Trustee; but, on request of the Company or the successor Trustee, such retiring Trustee shall, upon
payment of its charges, execute and deliver an instrument transferring to such successor Trustee
all the rights, powers and trusts of the retiring Trustee and shall duly assign, transfer and
deliver to such successor Trustee all property and money held by such retiring Trustee hereunder.
Upon request of any such successor Trustee, the Company shall execute any and all instruments for
more fully and certainly vesting in and confirming to such successor Trustee all such rights,
powers and trusts.



     No successor Trustee shall accept its appointment unless at the time of such acceptance such
successor Trustee shall be qualified and eligible under this Article 12.



     Section 12.12. Merger, Conversion, Consolidation or Succession to Business. Any Person into
which the Trustee may be merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a
party, or any corporation succeeding to all or substantially all the corporate trust business of
the Trustee by sale or otherwise, shall be the successor of the Trustee hereunder, provided such
corporation shall be otherwise qualified and eligible under this Article 12, without the execution
or filing of any paper or any further act on the



106









 







part of any of the parties hereto. In case any
Securities shall have been authenticated, but not delivered, by the Trustee then in office, any
successor by merger, conversion or consolidation to such authenticating Trustee may adopt such
authentication and deliver the Securities so authenticated with the same effect as if such
successor Trustee had itself authenticated such Securities.



     Section 12.13. 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 Securities),
the Trustee shall be subject to the provisions of the Trust Indenture Act regarding the collection
of claims against the Company (or any such other obligor).



ARTICLE 13

Holders’ Lists And Reports By Trustee




     Section 13.01. Company to Furnish Trustee Names and Addresses of Holders. The Company will
furnish or cause to be furnished to the Trustee:




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




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


excluding from any such list names and addresses received by the Trustee in its capacity as
Security Registrar; provided, however, that no such list need be furnished so long as the Trustee
is acting as Security Registrar.




     Section 13.02. Preservation of Information; Communications to Holders. (a) The Trustee
shall preserve, in as current a form as is reasonably practicable, the names and addresses of
Holders contained in the most recent list furnished to the Trustee as provided in Section 13.01 and
the names and addresses of Holders received by the Trustee in its capacity as Security Registrar.
The Trustee may destroy any list furnished to it as provided in Section 13.01 upon receipt of a new
list so furnished.



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



107









 





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



     Section 13.03. Reports By Trustee. (a) The Trustee shall transmit to Holders such reports
concerning the Trustee and its actions under this Indenture as may be required pursuant to the
Trust Indenture Act at the times and in the manner provided pursuant thereto. Reports so required
to be transmitted at stated intervals of not more than 12 months shall be transmitted no later than
July 15 in each calendar year, commencing in July 15, 2006. Each such report shall be dated as of
a date not more than 60 days prior to the date of transmission.



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



     Section 13.04. Reports by Company.



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



     (b) Delivery of such reports, information and documents to the Trustee is for informational
purposes only, and the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained therein, including the
Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to
conclusively rely exclusively on an Officer’s Certificate). It is expressly understood that
materials transmitted electronically by the Company to the Trustee shall be deemed filed with the
Trustee for purposes of this Section 13.04.



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ARTICLE 14

Satisfaction And Discharge




     Section 14.01. Satisfaction and Discharge of Indenture. This Indenture shall cease to be of
further effect (except as to any surviving rights of registration of transfer or exchange of
Securities herein expressly provided for), and the Trustee, on demand of and at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and discharge of this
Indenture, when



     (a) either




     (i) all Securities theretofore authenticated and delivered (other than (A) Securities
which have been destroyed, lost or stolen and which have been replaced or paid as provided
in Section 3.06 and (B) Securities for whose payment money has theretofore been deposited
with the Trustee in trust or segregated and held in trust by the Company and thereafter
repaid to the Company or discharged from such trust as provided in Section 6.04) have been
delivered to the Trustee for cancellation; or




     (ii) all such Securities not theretofore delivered to the Trustee for cancellation
have become due and payable and the Company has deposited or caused to be deposited with
the Trustee as trust funds in trust for the purpose an amount sufficient to pay and
discharge the entire indebtedness evidenced by such Securities not theretofore delivered
to the Trustee for cancellation;



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



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



     Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 12.07 and, if money shall have been deposited with the Trustee
pursuant to Section 14.01(a)(ii), the obligations of the Trustee under Section 14.02 and the last
paragraph of Section 6.04 shall survive.



     Section 14.02. Application of Trust Money. Subject to the provisions of the last paragraph
of Section 6.04, all money deposited with the Trustee pursuant to Section 14.01 shall be held in
trust and applied by it, in accordance with the provisions of the Securities and this Indenture, to
the payment, either directly or through any Paying Agent (including the Company acting as its own
Paying



109









 







Agent) as the Trustee may determine, to the Persons entitled thereto, of the principal and
Interest for whose payment such money has been deposited with the Trustee.



ARTICLE 15

Supplemental Indentures




     Section 15.01. Supplemental Indentures Without Consent of Holders. Without the consent of
any Holders, the Company, when authorized by a Board Resolution, and the Trustee, at any time and
from time to time, may enter into one or more indentures supplemental hereto, in form satisfactory
to the Trustee, for any of the following purposes:




     (i) to cure any ambiguity or correct any inconsistent or otherwise defective
provision contained herein, so long as such action does not adversely affect the interest
of the Holders; provided that any such action made solely to conform the provisions of
this Indenture to the description thereof contained in the final offering memorandum dated
December 13, 2005, shall be deemed not to adversely affect the interests of the Holders;




     (ii) to evidence the succession of another Person to the Company and the assumption
by any such successor of the covenants of the Company herein and in the Securities;




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




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




     (v) to convey, transfer, assign, mortgage or pledge to the Trustee as security for
the Securities any property or assets;




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




     (vii) to add or modify any other provision herein with respect to matters or
questions arising hereunder which the Company and the Trustee



110









 






may deem necessary or
desirable and which does not materially and adversely affect the rights of any Holder;




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



      Section 15.02. Supplemental Indentures With Consent of Holders. With the consent of the
Holders of not less than a majority in Principal Amount of the Outstanding Securities, by Act of
said Holders delivered to the Company and the Trustee, the Company, when authorized by a Board
Resolution, and the Trustee may enter into an indenture or indentures supplemental hereto for the
purpose of adding any provisions to or changing in any manner or eliminating any of the provisions
of this Indenture or of modifying in any manner the rights of the Holders under this Indenture;
provided, however, that no such supplemental indenture shall, without the consent of the Holder of
each Outstanding Security affected thereby,




     (i) reduce the percentage in Principal Amount of the Outstanding Securities, the
consent of whose Holders is required for any supplemental indenture, or the consent of
whose Holders is required for any waiver under this Indenture (including any waiver of
past defaults pursuant to Section 10.12);




     (ii) reduce the rate or extend the time of payment of any Interest on any Security;




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




     (iv) make any change that impairs or adversely affects the conversion rights or
Conversion Rate of any Securities;




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




     (vi) make any Security payable in money other than that stated in the Security or
other than in accordance with the provisions of this Indenture;




     (vii) impair the right of any Holder to receive payment of the Principal Amount of,
or Interest on, a Holder’s Securities on or after the



111









 






due dates therefor or to institute
suit for the enforcement of any payment on or with respect to such Holder’s Securities;




     (viii) modify the provisions of Article 5 relating to the subordination of the
Securities in a manner adverse to the Holders of Securities; or




     (ix) modify any of the provisions of this Section 15.02 or Section 10.12, except to
increase any such percentage or to provide that certain other provisions of this Indenture
cannot be modified or waived without the consent of the Holder of each Outstanding
Security affected thereby.



      It shall not be necessary for any Act of Holders under this Section 15.02 to approve the
particular form of any proposed supplemental indenture, but it shall be sufficient if such Act
shall approve the substance thereof.



      Section 15.03. Execution of Supplemental Indentures. In executing, or accepting the
additional trusts created by, any supplemental indenture permitted by this Article 15 or the
modifications thereby of the trusts created by this Indenture, the Trustee shall be entitled to
receive, and (subject to Section 12.01) shall be fully protected in relying upon, in addition to
the documents required by Section 1.02, an Opinion of Counsel stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture. Subject to the preceding
sentence, the Trustee shall sign such supplemental indenture if the same does not adversely affect
the Trustee’s own rights, duties or immunities under this Indenture or otherwise. The Trustee may,
but shall not be obligated to, enter into any such supplemental indenture that adversely affects
the Trustee’s own rights, duties or immunities under this Indenture or otherwise.



      Section 15.04. Effect of Supplemental Indentures. Upon the execution of any supplemental
indenture under this Article 15, this Indenture shall be modified in accordance therewith, and such
supplemental indenture shall form a part of this Indenture for all purposes; and every Holder of
Securities theretofore or thereafter authenticated and delivered hereunder shall be bound thereby.



      Section 15.05. Conformity with Trust Indenture Act. Every supplemental indenture executed
pursuant to this Article shall conform to the requirements of the Trust Indenture Act.



      Section 15.06. Reference in Securities to Supplemental Indentures. Securities authenticated
and delivered after the execution of any supplemental indenture pursuant to this Article 15 shall
bear a notation in form approved by the Trustee as to any matter provided for in such supplemental
indenture. If the Company shall so determine, new Securities so modified as to conform, in the



112









 







opinion of the Trustee and the Company, to any such supplemental indenture may be prepared and
executed by the Company and authenticated and delivered by the Trustee in exchange for Outstanding
Securities.



113









 





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



	 	 	 	 	 
	 	INTEL CORPORATION

 	 
	 	By:  	/s/
Ravi Jacob
 	 
	 	 	 	 
	 	 	 	 
	 



[Trustee Signature Follows]




 









 








	 	 	 	 	 
	 	Citibank, N.A., as Trustee

 	 
	 	By:  	/s/ John J. Byrnes
 	 
	 	 	John J. Byrnes	 
	 	 	Vice President	 



 









 






	 	 	 	 	 



EXHIBIT A




Form of Fundamental Change Repurchase Notice




_______________, ____




Citibank, N.A.

388 Greenwich Street

14th Floor

New York, New York 10013




Attention: Agency & Trust




	 	 	 	 	 
	 

	 	Re:
	 	Intel Corporation (the “Company”)
	 

	 	 	 	2.95% Junior Subordinated Convertible Debentures due 2035






     This is a Fundamental Change Repurchase Notice as defined in Section 8.01(a) of the Indenture
dated as of December 16, 2005 (the “Indenture”) between the Company and Citibank, N.A., as Trustee.
Terms used but not defined herein shall have the meanings ascribed to them in the Indenture.


Certificate No(s). of Securities:                                         




     I intend to deliver the following aggregate Principal
Amount of Securities for purchase by the Company pursuant to
Section 8.01 of the Indenture (in multiples of $1,000):


$                                        




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



Signed:                                         





 










 









EXHIBIT B




Additional Shares to Be Delivered in Connection with Conversion

Upon a Make-Whole Fundamental Change




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock Price
	Effective	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	date	 	$26.72	 	 	$30.00	 	 	$35.00	 	 	$40.00	 	 	$45.00	 	 	$50.00	 	 	$55.00	 	 	$60.00	 	 	$65.00	 	 	$70.00	 	 	$75.00	 	 	$80.00	 	 	$85.00	 	 	$90.00	 	 	$95.00	 	 	$100.00	 
	 
	12/16/2005
	 	 	5.7089	 	 	 	4.6174	 	 	 	3.3901	 	 	 	2.5971	 	 	 	2.0584	 	 	 	1.6763	 	 	 	1.3951	 	 	 	1.1813	 	 	 	1.0143	 	 	 	0.8805	 	 	 	0.7710	 	 	 	0.6799	 	 	 	0.6029	 	 	 	0.5368	 	 	 	0.4797	 	 	 	0.4296	 
	12/15/2006
	 	 	5.7089	 	 	 	4.4178	 	 	 	3.1816	 	 	 	2.3944	 	 	 	1.8688	 	 	 	1.5029	 	 	 	1.2383	 	 	 	1.0405	 	 	 	0.8860	 	 	 	0.7673	 	 	 	0.6695	 	 	 	0.5886	 	 	 	0.5205	 	 	 	0.4624	 	 	 	0.4121	 	 	 	0.3683	 
	12/15/2007
	 	 	5.7089	 	 	 	4.2055	 	 	 	2.9533	 	 	 	2.1700	 	 	 	1.6586	 	 	 	1.3112	 	 	 	1.0664	 	 	 	0.8875	 	 	 	0.7524	 	 	 	0.6473	 	 	 	0.5632	 	 	 	0.4943	 	 	 	0.4367	 	 	 	0.3877	 	 	 	0.3455	 	 	 	0.3086	 
	12/15/2008
	 	 	5.7089	 	 	 	3.9974	 	 	 	2.7204	 	 	 	1.9367	 	 	 	1.4391	 	 	 	1.1122	 	 	 	0.8896	 	 	 	0.7323	 	 	 	0.6170	 	 	 	0.5293	 	 	 	0.4605	 	 	 	0.4048	 	 	 	0.3586	 	 	 	0.3195	 	 	 	0.2858	 	 	 	0.2563	 
	12/15/2009
	 	 	5.7089	 	 	 	3.7836	 	 	 	2.4613	 	 	 	1.6674	 	 	 	1.1822	 	 	 	0.8789	 	 	 	0.6836	 	 	 	0.5529	 	 	 	0.4617	 	 	 	0.3950	 	 	 	0.3441	 	 	 	0.3036	 	 	 	0.2704	 	 	 	0.2422	 	 	 	0.2180	 	 	 	0.1967	 
	12/15/2010
	 	 	5.7089	 	 	 	3.5691	 	 	 	2.1655	 	 	 	1.3415	 	 	 	0.8656	 	 	 	0.5929	 	 	 	0.4349	 	 	 	0.3403	 	 	 	0.2804	 	 	 	0.2397	 	 	 	0.2099	 	 	 	0.1866	 	 	 	0.1674	 	 	 	0.1511	 	 	 	0.1369	 	 	 	0.1242	 
	12/15/2011
	 	 	5.7089	 	 	 	3.4095	 	 	 	1.8563	 	 	 	0.9422	 	 	 	0.4598	 	 	 	0.2354	 	 	 	0.1409	 	 	 	0.1018	 	 	 	0.0834	 	 	 	0.0723	 	 	 	0.0641	 	 	 	0.0572	 	 	 	0.0512	 	 	 	0.0459	 	 	 	0.0412	 	 	 	0.0370	 
	12/15/2012
	 	 	5.7089	 	 	 	3.3908	 	 	 	1.6860	 	 	 	0.5301	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	12/15/2015
	 	 	5.7089	 	 	 	3.3790	 	 	 	1.6198	 	 	 	0.4558	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	12/15/2020
	 	 	5.7089	 	 	 	3.6358	 	 	 	1.7442	 	 	 	0.4918	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	12/15/2025
	 	 	5.7089	 	 	 	4.0190	 	 	 	1.9031	 	 	 	0.5247	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	12/15/2030
	 	 	5.7089	 	 	 	4.1528	 	 	 	1.8643	 	 	 	0.4544	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	12/15/2035
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—