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Exhibit 4(d)  


FIRST
HORIZON PHARMACEUTICAL CORPORATION 


1.75%
Contingent Convertible Senior Subordinated Notes Due 2024 




INDENTURE



Dated
as of March 8, 2004 




Deutsche
Bank Trust Company Americas 


TRUSTEE 







 
 
 

CROSS-REFERENCE TABLE*    
    



	Trust Indenture Act Section
 
	 	Indenture

Section

	310(a)(1)	 	7.10
	(a)(2)	 	7.10
	(a)(3)	 	N.A.
	(a)(4)	 	N.A.
	(a)(5)	 	N.A.
	(b)	 	7.08, 7.10
	(c)	 	N.A.
	311(a)	 	7.11
	(b)	 	7.11
	(c)	 	N.A.
	312(a)	 	2.05
	(b)	 	12.03
	(c)	 	12.03
	313(a)	 	7.06
	(b)	 	7.06
	(c)	 	7.06
	(d)	 	7.06
	314(a)	 	4.02, 4.03
	(b)	 	N.A.
	(c)(1)	 	12.04
	(c)(2)	 	12.04
	(c)(3)	 	N.A.
	(d)	 	N.A.
	(e)	 	12.05
	(f)	 	N.A.
	315(a)	 	7.01(b)
	(b)	 	7.05
	(c)	 	7.01
	(d)	 	7.01(c)
	(e)	 	6.11
	316(a)(1)(A)	 	6.05
	(a)(1)(B)	 	6.04
	(a)(2)	 	N.A.
	(b)	 	6.07
	(c)	 	1.05(e)
	317(a)(1)	 	6.08
	(a)(2)	 	6.09
	(b)	 	2.04
	318(a)	 	N.A.
	N.A. means not applicable.	 	 







*This
Cross-Reference Table is not part of the Indenture. 


2








  



 
 

TABLE OF CONTENTS    
    



	ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE
	SECTION 1.01.	 	Definitions.	 	1
	

SECTION 1.02.	
 	

Other Definitions.	
 	

5
	

SECTION 1.03.	
 	

Incorporation by Reference of Trust Indenture Act	
 	

6
	

SECTION 1.04.	
 	

Rules of Construction	
 	

7
	

SECTION 1.05.	
 	

Acts of Holders	
 	

7
	

ARTICLE II

THE SECURITIES
	

SECTION 2.01.	
 	

Form and Dating	
 	

8
	

SECTION 2.02.	
 	

Execution and Authentication	
 	

9
	

SECTION 2.03.	
 	

Registrar, Paying Agent and Conversion Agent	
 	

9
	

SECTION 2.04.	
 	

Paying Agent to Hold Money in Trust	
 	

10
	

SECTION 2.05.	
 	

Securityholder Lists	
 	

10
	

SECTION 2.06.	
 	

Transfer and Exchange	
 	

10
	

SECTION 2.07.	
 	

Replacement Securities	
 	

11
	

SECTION 2.08.	
 	

Outstanding Securities; Determinations of Holders' Action	
 	

12
	

SECTION 2.09.	
 	

Temporary Securities	
 	

12
	

SECTION 2.10.	
 	

Cancellation	
 	

13
	

SECTION 2.11.	
 	

Persons Deemed Owners	
 	

13
	

SECTION 2.12.	
 	

Global Securities	
 	

13
	

SECTION 2.13.	
 	

CUSIP Numbers	
 	

15
	

ARTICLE III

REDEMPTION AND PURCHASES
	

SECTION 3.01.	
 	

Right To Redeem; Notices To Trustee	
 	

15
	

SECTION 3.02.	
 	

Selection of Securities to Be Redeemed	
 	

15
	

SECTION 3.03.	
 	

Notice of Redemption	
 	

16
	

SECTION 3.04.	
 	

Effect of Notice of Redemption	
 	

16
	

SECTION 3.05.	
 	

Deposit of Redemption Price	
 	

16
	

SECTION 3.06.	
 	

Securities Redeemed in Part	
 	

17
	

SECTION 3.07.	
 	

Reserved.	
 	

17
	

SECTION 3.08.	
 	

Purchase of Securities at Option of the Holder	
 	

17
	

SECTION 3.09.	
 	

Purchase of Securities at Option of the Holder upon Change in Control	
 	

19
	

SECTION 3.10.	
 	

Effect of Purchase Notice or Change in Control Purchase Notice	
 	

21
	 	 	 	 	 





i







 

	

SECTION 3.11.	
 	

Deposit of Purchase Price or Change in Control Purchase Price	
 	

22
	

SECTION 3.12.	
 	

Securities Purchased in Part	
 	

22
	

SECTION 3.13.	
 	

Covenant to Comply with Securities Laws upon Purchase of Securities	
 	

22
	

SECTION 3.14.	
 	

Repayment to the Company	
 	

22
	

ARTICLE IV

COVENANTS
	

SECTION 4.01.	
 	

Payment of Securities	
 	

23
	

SECTION 4.02.	
 	

SEC and Other Reports	
 	

23
	

SECTION 4.03.	
 	

Compliance Certificate	
 	

23
	

SECTION 4.04.	
 	

Further Instruments and Acts	
 	

24
	

SECTION 4.05.	
 	

Maintenance of Office or Agency	
 	

24
	

SECTION 4.06.	
 	

Delivery of Certain Information	
 	

24
	

SECTION 4.07.	
 	

Tax Treatment of Securities	
 	

24
	

SECTION 4.08.	
 	

Liquidated Damages	
 	

25
	

ARTICLE V

SUCCESSOR CORPORATION
	

SECTION 5.01.	
 	

When the Company May Merge or Transfer Assets	
 	

25
	

ARTICLE VI

DEFAULTS AND REMEDIES
	

SECTION 6.01.	
 	

Events of Default	
 	

26
	

SECTION 6.02.	
 	

Defaults and Remedies	
 	

27
	

SECTION 6.03.	
 	

Other Remedies	
 	

27
	

SECTION 6.04.	
 	

Waiver of Past Defaults	
 	

27
	

SECTION 6.05.	
 	

Control by Majority	
 	

28
	

SECTION 6.06.	
 	

Limitation on Suits	
 	

28
	

SECTION 6.07.	
 	

Rights of Holders to Receive Payment	
 	

28
	

SECTION 6.08.	
 	

Collection Suit by Trustee	
 	

28
	

SECTION 6.09.	
 	

Trustee May File Proofs of Claim	
 	

28
	

SECTION 6.10.	
 	

Priorities	
 	

29
	

SECTION 6.11.	
 	

Undertaking for Costs	
 	

29
	

SECTION 6.12.	
 	

Waiver of Stay, Extension or Usury Laws	
 	

30
	

ARTICLE VII

TRUSTEE
	

SECTION 7.01.	
 	

Duties of Trustee	
 	

30
	

SECTION 7.02.	
 	

Rights of Trustee	
 	

31
	 	 	 	 	 



ii








 

	

SECTION 7.03.	
 	

Individual Rights of Trustee	
 	

32
	

SECTION 7.04.	
 	

Trustee's Disclaimer	
 	

32
	

SECTION 7.05.	
 	

Notice of Defaults	
 	

32
	

SECTION 7.06.	
 	

Reports by Trustee to Holders	
 	

32
	

SECTION 7.07.	
 	

Compensation and Indemnity	
 	

33
	

SECTION 7.08.	
 	

Replacement of Trustee	
 	

33
	

SECTION 7.09.	
 	

Successor Trustee by Merger	
 	

34
	

SECTION 7.10.	
 	

Eligibility; Disqualification	
 	

34
	

SECTION 7.11.	
 	

Preferential Collection of Claims Against Company	
 	

34
	

ARTICLE VIII

DISCHARGE OF INDENTURE
	

SECTION 8.01.	
 	

Discharge of Liability on Securities	
 	

34
	

SECTION 8.02.	
 	

Repayment to the Company	
 	

34
	

ARTICLE IX

AMENDMENTS
	

SECTION 9.01.	
 	

Without Consent of Holders	
 	

35
	

SECTION 9.02.	
 	

With Consent of Holders	
 	

35
	

SECTION 9.03.	
 	

Compliance with Trust Indenture Act	
 	

36
	

SECTION 9.04.	
 	

Revocation and Effect of Consents	
 	

36
	

SECTION 9.05.	
 	

Notation on or Exchange of Securities	
 	

36
	

SECTION 9.06.	
 	

Trustee to Sign Supplemental Indentures	
 	

36
	

SECTION 9.07.	
 	

Effect of Supplemental Indentures	
 	

36
	

ARTICLE X

CONVERSIONS
	

SECTION 10.01.	
 	

Conversion Privilege	
 	

37
	

SECTION 10.02.	
 	

Conversion Procedure	
 	

38
	

SECTION 10.03.	
 	

Adjustments Below Par Value	
 	

40
	

SECTION 10.04.	
 	

Taxes on Conversion	
 	

40
	

SECTION 10.05.	
 	

Company to Provide Stock.	
 	

40
	

SECTION 10.06.	
 	

Adjustment of Conversion Price	
 	

41
	

SECTION 10.07.	
 	

No Adjustment	
 	

44
	

SECTION 10.08.	
 	

Equivalent Adjustments	
 	

45
	

SECTION 10.09.	
 	

Adjustment for Tax Purposes	
 	

45
	

SECTION 10.10.	
 	

Notice of Adjustment	
 	

45
	

SECTION 10.11.	
 	

Notice of Certain Transactions	
 	

45
	 	 	 	 	 





iii







 

	

SECTION 10.12.	
 	

Effect of Reclassification, Consolidation, Merger, Share Exchange or Sale on Conversion Privilege.	
 	

46
	

SECTION 10.13.	
 	

Trustee's Disclaimer.	
 	

46
	

SECTION 10.14.	
 	

Voluntary Reduction.	
 	

47
	

SECTION 10.15.	
 	

Simultaneous Adjustments.	
 	

47
	

ARTICLE XI

SUBORDINATION
	

SECTION 11.01.	
 	

Terms and Conditions of Subordination	
 	

47
	

SECTION 11.02.	
 	

Distribution on Acceleration of Securities, Dissolution and Reorganization.	
 	

48
	

ARTICLE XII

MISCELLANEOUS
	

SECTION 12.01.	
 	

Trust Indenture Act Controls.	
 	

51
	

SECTION 12.02.	
 	

Notices.	
 	

51
	

SECTION 12.03.	
 	

Communication by Holders with Other Holders.	
 	

52
	

SECTION 12.04.	
 	

Certificate and Opinion as to Conditions Precedent.	
 	

52
	

SECTION 12.05.	
 	

Statements Required in Certificate or Opinion.	
 	

53
	

SECTION 12.06.	
 	

Separability Clause.	
 	

53
	

SECTION 12.07.	
 	

Rules by Trustee, Paying Agent, Conversion Agent and Registrar.	
 	

53
	

SECTION 12.08.	
 	

Legal Holidays.	
 	

53
	

SECTION 12.09.	
 	

Governing Law.	
 	

53
	

SECTION 12.10.	
 	

No Recourse Against Others.	
 	

54
	

SECTION 12.11.	
 	

Successors.	
 	

54
	

SECTION 12.12.	
 	

Multiple Originals.	
 	

54





Exhibit A-1-Form
of Global Security

Exhibit A-2-Form of Certificated Security

Exhibit B-Transfer Certificate 


iv










        INDENTURE dated as of March 8, 2004 between FIRST HORIZON PHARMACEUTICAL CORPORATION, a Delaware corporation (the "Company"), and Deutsche Bank Trust Company Americas, a New York
banking corporation duly organized and existing under the laws of the State of New York (the "Trustee"). 



        Each
party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Company's 1.75% Contingent Convertible Senior Subordinated
Notes Due 2024 (the "Notes"): 


ARTICLE I  


 DEFINITIONS AND INCORPORATION BY REFERENCE  


        SECTION
1.01.    Definitions.    



        "144A Global Security" means a Global Security in the form of the Security attached hereto as Exhibit A-1 that is
deposited with and registered in the name of the Depositary, representing Securities sold in reliance on Rule 144A under the Securities Act. 


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


        "Applicable Procedures" means, with respect to any transfer or transaction involving a Global Security or beneficial interest therein, the
rules and procedures of the Depositary for such Security, in each case to the extent applicable to such transaction and as in effect from time to time. 


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



        "Board Resolution" means a copy of one or more resolutions, certified by an Officer of the Company to have been duly adopted or consented
to by the applicable Board of Directors and to be in full force and effect, and delivered to the Trustee. 


        "Business Day" means, with respect to any Security, a day that in the City of New York is not a day on which banking institutions are
authorized by law or regulation to close. 


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


        "Certificated Securities" means Securities that are in the form of the Securities attached hereto as Exhibit A-2. 


        "Closing Price" with respect to any security on any day means the closing sale price per security regular way on such day or, in case no
such sale is reported for such day, the average of the reported closing bid and asked prices, regular way, in each case on the New York Stock Exchange, or, if such security is not listed or admitted
to trading on such exchange, on the principal national securities exchange or quotation system on which such security is quoted or listed or admitted to trading, or, if not quoted or listed or
admitted to trading on any national securities exchange or quotation system, the average of the closing bid and asked prices of such security on the over-the-counter market on
the day in question as reported by the National Quotation Bureau Incorporated, or a similar generally accepted reporting service, or if not so available, in such manner as furnished by any New York
Stock Exchange member firm selected from time to time by the Board of Directors for that purpose, or a price determined in good faith by the Board of Directors or, to the extent permitted by
applicable law, a duly authorized committee thereof, whose determination shall be conclusive. 







 



        "Common Stock" shall mean shares of the Company's Common Stock, $0.001 par value per share, 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. 


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


        "Company Order" means a written request or order signed in the name of the Company by any two Officers and delivered to the Trustee. 


        "Corporate Trust Office" means the office of the Trustee at which at any time the trust created by this Indenture shall be administered,
which office at the date hereof is located at 60 Wall Street, New York, New York 10005, Attention: Trust and Securities Services, or such other address as the Trustee may designate from time to time
by notice to the Holders and the Company, or the principal corporate trust office of any successor Trustee (or such other address as a successor Trustee may designate from time to time by notice to
the Holders and the Company). 


        "Credit Facility" means that certain Credit Agreement dated as of February 11, 2003, among the Company, as borrower, LaSalle Bank
National Association, as lender and administrative agent for the lenders, and various other lenders, as amended or which are not material in amount, including all related notes, guarantees, collateral
documents, instruments and agreements executed in connection therewith, as each may be amended, modified, restated, renewed, replaced, refinanced or restructured (including, without limitation, any
amendment increasing the amount of available borrowing) from time to time. 


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


        "Designated Senior Indebtedness" means the Credit Facility and any other Senior Indebtedness (1) the outstanding principal amount
of which is $20 million or more and (2) in which the instrument creating or evidencing the Indebtedness, or any related agreements or documents to which the Company is a party, expressly
provides that such Indebtedness is "Designated Senior Indebtedness" for purposes of this Indenture, provided that the instrument, agreement or other document may place limitations and conditions on
the right of the Senior Indebtedness to exercise the rights of Designated Senior Indebtedness. 


        "Exchange Act" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder, as in effect
from time to time. 


        "Global Securities" means Securities that are in the form of the Securities attached hereto as Exhibit A-1, and to the
extent that such Securities are required to bear the Legend required by Section 2.06 such Securities will be in the form of a 144A Global Security. 


        "Holder" or "Securityholder" means a person in whose name a Security is registered on the
Registrar's books. 


        "Indebtedness" means, without duplication: 



        (1)   all
of the Company's indebtedness, obligations and other liabilities (A) for borrowed money, including overdrafts, and any loans or advances from banks, whether
or not evidenced by notes or similar instruments, or (B) evidenced by credit or loan agreements, bonds, debentures, notes or similar instruments, whether or not the recourse of the lender is to
the whole of the Company's assets or to only a portion thereof, other than any account payable or other accrued 



2







 

current
liability or obligation incurred in the ordinary course of business in connection with the obtaining of materials or services; 


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



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


        (4)   all
of the Company's obligations and other liabilities under any lease or related document, including a purchase agreement, conditional sale or other title retention
agreement, in connection with the lease of real property or improvements thereon (or any personal property included as part of any such lease) which provides that the Company is contractually
obligated to purchase or cause a third party to purchase the leased property or pay an agreed upon residual value of the leased property, including the Company's obligations under such lease or
related document to purchase or cause a third party to purchase such leased property or pay an agreed upon residual value of the leased property to the lessor (whether or not such lease transaction is
characterized as an operating lease or a capitalized lease in accordance with generally accepted accounting principles); 


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


        (6)   all
of the Company's direct or indirect guaranties or similar agreements by the Company in respect of, and all of the Company's obligations or liabilities to purchase or
otherwise acquire or otherwise assure a creditor against loss in respect of, indebtedness, obligations or liabilities of another person of the kinds described in clauses (1) through (5); and 


        (7)   any
and all deferrals, renewals, extensions, refinancings and refundings of, or amendments, modifications or supplements to, any indebtedness, obligation or liability of
the kinds described in clauses (1) through (6); 


provided,
however, Indebtedness shall not include obligations of any person (A) arising from the honoring by a bank or other financial institution of a check, draft or similar instrument
inadvertently drawn against insufficient funds in the ordinary course of business, provided that such obligations are extinguished within two business days of their incurrence, (B) resulting
from the endorsement of negotiable instruments for collection in the ordinary course of business and consistent with past business practices and (C) in respect of stand-by letters
of credit to the extent collateralized by cash or cash equivalents. 




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


        "Initial Purchasers" shall mean Deutsche Bank Securities Inc., and UBS Securities LLC. 



        "Issue Date" of any Security means the date on which the Security was originally issued or deemed issued as set forth on the face of the
Security. 


        "Liquidated Damages" has the meaning set forth in the Registration Rights Agreement dated as of March 8, 2004 between the Company
and the Initial Purchasers. 


        "Market Capitalization" as of any date of calculation means the average Closing Price of the Company's Common Stock on the 10 Trading Days
immediately prior to such date of calculation multiplied by the average aggregate number of shares of the Company's Common Stock outstanding on the 10 Trading Days immediately prior to such date. 


3







 



        "Officer" means the Vice Chairman and Chief Executive Officer, any Executive Vice President, any Senior Vice President, any Vice
President, the Chief Financial Officer, the Treasurer, the Secretary or any Assistant Secretary of the Company. 



        "Officers' Certificate" means a written certificate containing the information specified in Sections 12.04 and 12.05, signed in the name
of the Company by any two Officers, and delivered to the Trustee. An Officers' Certificate given pursuant to Section 4.03 shall be signed by the Treasurer or Chief Financial Officer of the
Company but need not contain the information specified in Sections 12.04 and 12.05. 


        "Opinion of Counsel" means a written opinion containing the information specified in Section 12.04 and 12.05, from legal counsel
who is acceptable to the Trustee in its reasonable discretion. The counsel may be an employee of, or counsel to, the Company or the Trustee. 



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


        "Principal Amount" or "principal amount" of a Security means the Principal Amount as set
forth on the face of the Security. 


        "Redemption Date" shall mean the date specified for redemption of the Securities in accordance with the terms of the Securities and this
Indenture. 


        "Redemption Price" shall have the meaning set forth in paragraph 5 of the Securities. 


        "Responsible Officer" means, when used with respect to the Trustee, any managing director, director, vice president, assistant vice
president, assistant treasurer, assistant secretary, associate or any other officer within the corporate trust department of the Trustee customarily performing functions similar to
those performed by any of the above designated officers and also shall mean, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of his
knowledge and familiarity with the particular subject. 


        "Restricted Security" means a Security required to bear the restrictive legend set forth in the form of Security set forth in Exhibits
A-1 and A-2 of this Indenture. 


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



        "SEC" means the Securities and Exchange Commission. 


        "Security" or "Securities" means any of the Company's 1.75% Contingent Convertible Senior
Subordinated Notes Due 2024, as amended or supplemented from time to time, issued under this Indenture. 


        "Securities Act" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, as in effect from
time to time. 


        "Securityholder" or "Holder" means a person in whose name a Security is registered on the
Registrar's books. 


        "Senior Indebtedness" means the principal of, premium, if any, interest (including, with respect to the Credit Facility, all interest
accrued 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) and rent
payable on or in connection with, and all fees, costs, expenses and other amounts accrued or due on or in connection with, the Company's Indebtedness whether secured or unsecured, absolute or
contingent, due or to become due, outstanding on the date of this Indenture or thereafter created, incurred, assumed, guaranteed or in effect guaranteed by the Company, including all deferrals, 


4







 



renewals,
extensions or refundings of, or amendments, modifications or supplements to, the foregoing other than: 



        (1)   any
Indebtedness or obligation whose terms expressly provide that such Indebtedness or obligation shall not be senior in right of payment to the Securities or expressly
provides that such Indebtedness is on the same basis with or junior to the Securities or any other Indebtedness of the Company; 


        (2)   the
Company's Indebtedness to an Affiliate or to any Subsidiary of the Company; and 


        (3)   the
Notes. 




        "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 is due and payable. 


        "Subsidiary" means any person in which at least a majority of the outstanding Voting Stock shall at the time directly or indirectly be
owned or controlled by the Company or by one or more Subsidiaries or by the Company and one or more Subsidiaries. 


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


        "Trading Day" means a day during which trading in securities generally occurs on the New York Stock Exchange or, if the Common Stock is
not listed on the New York Stock Exchange, on the principal national securities exchange on which the Common Stock is then listed or, if the Common Stock is not listed on a national securities
exchange, on The Nasdaq National Market or, if the Common Stock is not quoted on The Nasdaq National Market, on the principal other market on which the Common Stock is then traded. 



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


        "Voting Stock" of a person means Capital Stock of such person of the class or classes pursuant to which the holders thereof have the
general voting power under ordinary circumstances to elect at least a majority of the board of directors, managers or trustees of such person (irrespective of whether or not at the time Capital Stock
of any other class or classes shall have or might have voting power by reason of the happening of any contingency). 


        SECTION
1.02.    Other Definitions.    



	Term:
 
	 	Defined in

Section:

	95% Trading Condition	 	10.01(c)
	Act	 	1.05(a)
	Agent Members	 	2.12(e)(v)
	Aggregate Market Premium	 	10.06(f)
	Beneficial Owner	 	3.09(a)
	Cash	 	3.08(b)
	Change in Control	 	3.09(a)
	Change in Control Purchase Date	 	3.09(a)
	Change in Control Purchase Notice	 	3.09(c)
	Change in Control Purchase Price	 	3.09(a)
	 	 	 






5







 

	Company Notice	 	3.08(c)
	Company Notice Date	 	3.08(c)
	Continuing Directors	 	3.09(a)
	Conversion Agent	 	2.03
	Conversion Date	 	10.02
	Conversion Price	 	10.06
	Conversion Shares	 	10.01
	Depositary	 	2.01(a)
	DTC	 	2.01(a)
	Event of Default	 	6.01
	Ex-Dividend Date	 	10.01
	Group	 	3.09(a)
	Legal Holiday	 	12.08
	Legend	 	2.06(f)
	Nonpayment Default	 	11.01(b)
	Paying Agent	 	2.03
	Payment Blockage Period	 	11.01(b)
	Payment Blockage Notice	 	11.01(b)
	Payment Default	 	11.01(b)
	Principal Value Conversion	 	10.02
	Principal Value Conversion Notice	 	10.02
	Purchase Date	 	3.08(a)
	Purchase Notice	 	3.08(a)
	Purchase Price	 	3.08(a)
	QIBS	 	2.01(a)
	Quarter	 	10.01(a)
	Registrar	 	2.03
	Rule 144A Information	 	4.06
	Security Trading Price	 	10.01
	Stockholder Rights Plan	 	10.06(h)
	Trigger Event	 	10.06(h)






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


        "Commission" means the SEC. 


        "indenture securities" means the Securities. 


        "indenture security holder" means a Securityholder. 


        "indenture to be qualified" means this Indenture. 


        "indenture trustee" or "institutional trustee" means the Trustee. 


        "obligor" on the indenture securities means the Company. 



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


6







 



        SECTION
1.04.    Rules of Construction.    Unless the context otherwise requires: 



        (a)   a
term has the meaning assigned to it; 


        (b)   an
accounting term not otherwise defined has the meaning assigned to it in accordance with generally accepted accounting principles as in effect from time to time; 


        (c)   "or" is not exclusive; 


        (d)   "including" means including, without limitation; and 


        (e)   words
in the singular include the plural, and words in the plural include the singular. 




        SECTION
1.05.    Acts of Holders.    (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 the
"Act" of Holders signing such instrument or instruments. Proof of execution of any such instrument or of a writing appointing any such agent shall be
sufficient for any purpose of this Indenture and conclusive in favor of the Trustee and the Company, if made in the manner provided in this Section. 



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




        The
fact and date of the execution of any such instrument or writing, or the authority of the Person executing the same, may also be proved in any other manner which the Trustee deems
sufficient. 



        (c)   The
ownership of Registered Securities shall be proved by the register maintained by the Registrar. 



        (d)   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. 


        (e)   If
the Company shall solicit from the Holders any request, demand, authorization, direction, notice, consent, waiver or other Act, the Company may, at its option, by or
pursuant to a Board Resolution, fix in advance a record date for the determination of Holders entitled to give such request, demand, authorization, direction, notice, consent, waiver or other Act, but
the Company shall have no obligation to do so. If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other Act may be given before or after such
record date, but only the Holders of record at the close of business on such record date shall be deemed to be Holders for the purposes of determining whether Holders of the requisite proportion of
outstanding Securities have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other Act, and for that purpose the outstanding Securities
shall be computed as of such record date; provided that no such authorization, agreement or consent by the Holders on such record date shall be deemed effective 



7







 




unless
it shall become effective pursuant to the provisions of this Indenture not later than six months after the record date. 



ARTICLE II  


 THE SECURITIES  



        SECTION
2.01.    Form and Dating.    The Securities and the Trustee's certificate of authentication shall be
substantially in the forms set forth on Exhibits A-1 and A-2, which are a part of this Indenture and incorporated by reference herein. The Securities may have notations,
legends or endorsements required by law, stock exchange rule or usage; provided that any such notation, legend or endorsement required by usage is in a form acceptable to the Company. The Company
shall provide any such notations, legends or endorsements to the Trustee in a Company Order. Each Security shall be dated the date of its authentication. 



        (a)    144A Global Securities.    Securities offered and sold to qualified institutional buyers as defined in
Rule 144A ("QIBS") in reliance on Rule 144A shall be issued, initially in the form of a 144A Global Security, which shall be deposited
with the Trustee at its Corporate Trust Office, as custodian for the Depositary and registered in the name of The Depository Trust Company ("DTC") or
the nominee thereof (such depositary, or any successor thereto, and any such nominee being hereinafter referred to as the "Depositary"), duly executed
by the Company and authenticated by the Trustee as hereinafter provided. The aggregate principal amount of the 144A Global Securities may from time to time be increased or decreased by adjustments
made on the records of the Trustee and the Depositary as hereinafter provided. 


        (b)    Global Securities in General.    Each Global Security shall represent such of the outstanding Securities as
shall be specified therein and each shall provide that it shall represent the aggregate amount of outstanding Securities from time to time endorsed thereon and that the aggregate amount of outstanding
Securities represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges, redemptions and conversions. 




        Any
adjustment of the aggregate principal amount of a Global Security to reflect the amount of any increase or decrease in the amount of outstanding Securities represented thereby shall
be made by the Trustee in accordance with instructions given by the Holder thereof as required by Section 2.12 hereof and shall be made on the records of the Trustee and the Depositary. 



        (c)    Book-Entry Provisions.    The Company shall execute and the Trustee shall, in accordance with this
Section 2.01(c), authenticate and deliver initially one or more Global Securities that (a) shall be registered in the name of the Depositary, (b) shall be delivered by the Trustee
to the Depositary or pursuant to the Depositary's instructions and (c) shall bear legends substantially to the following effect: 



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




8







 


SECURITY
SHALL BE LIMITED TO TRANSFERS TO NOMINEES OF THE DEPOSITORY TRUST COMPANY OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN ARTICLE TWO OF THE INDENTURE REFERRED TO ON THE REVERSE HEREOF." 




        (d)    Certificated Securities.    Securities not issued as interests in the Global Securities will be issued in
certificated form substantially in the form of Exhibit A-2 attached hereto. 




        SECTION
2.02.    Execution and Authentication.    The Securities shall be executed on behalf of the Company by any
Officer. The signature of the Officer of the Company on the Securities may be manual or facsimile. 



        Securities
bearing the manual or facsimile signatures of individuals who were at the time of the execution of the Securities 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
authentication of such Securities. 


        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 duly executed by the Trustee by manual signature of a Responsible Officer, and such certificate upon any Security shall be conclusive evidence, and the
only evidence, that such Security has been duly authenticated and delivered hereunder. 


        The
Trustee shall authenticate and deliver Securities for original issue in an aggregate Principal Amount of up to $150,000,000 (which shall include the Initial Purchasers' option to
purchase $25,000,000 of additional Securities) upon a Company Order without any further action by the Company. The aggregate Principal Amount of Securities outstanding at any time may not exceed the
amount set forth in the foregoing sentence, except as provided in Section 2.07 


        The
Securities shall be issued only in registered form without coupons and only in denominations of $1,000 of Principal Amount and any integral multiple thereof. 


        SECTION
2.03.    Registrar, Paying Agent and Conversion Agent.    The Company shall maintain an office or agency where
Securities may be presented for registration of transfer or for exchange ("Registrar"), an office or agency where Securities may be presented for
purchase or payment ("Paying Agent") and an office or agency where Securities may be presented for conversion ("Conversion
Agent"). The Registrar shall keep a register of the Securities and of their transfer and exchange. The Company may have one or more co-registrars, one or more
additional paying agents and one or more additional conversion agents. The term Paying Agent includes any additional paying agent, including any named pursuant to Section 4.05. The term
Conversion Agent includes any additional conversion agent, including any named pursuant to Section 4.05. 


        The
Company shall enter into an appropriate agency agreement with any Registrar, Paying Agent, Conversion Agent or co-registrar (other than the Trustee). The agreement shall
implement the provisions of this Indenture that relate to such agent. The Company shall notify the Trustee by a Company Order of the name and address of any such agent. If the Company fails to
maintain a Registrar, Paying Agent or Conversion Agent, the Trustee shall act as such and shall be entitled to appropriate compensation therefor pursuant to Section 7.07. The Company or any
Subsidiary
or an Affiliate of either of them may act as Paying Agent, Registrar, Conversion Agent or co-registrar. 


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


9







 



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


        SECTION
2.05.    Securityholder Lists.    The Trustee shall preserve in as current a form as is reasonably practicable
the most recent list available to it of the names and addresses of Securityholders. If the Trustee is not the Registrar, the Company shall cause to be furnished to the Trustee at least semiannually in
advance of each interest payment date a listing of Securityholders dated within 15 days of the date on which the list is furnished and at such other times as the Trustee may request in writing
a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of Securityholders. 


        SECTION
2.06.    Transfer and Exchange.    (a) Subject to Section 2.12 hereof, upon surrender for
registration of transfer of any Securities, together with a written instrument of transfer satisfactory to the Registrar duly executed by the Securityholder or such Securityholder's attorney duly
authorized in writing, at the office or agency of the Company designated as Registrar or co-registrar pursuant to Section 2.03, 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 denomination or denominations, of a like aggregate Principal Amount. The
Company shall not charge a service charge for any registration of transfer or exchange, but the Company may require payment of a sum sufficient to pay all taxes, assessments or other governmental
charges that may be imposed in connection with the transfer or exchange of the Securities from the Securityholder requesting such transfer or exchange. 


        At
the option of the Holder, Securities may be exchanged for other Securities of any authorized denomination or denominations, of a like aggregate Principal Amount, upon surrender of the
Securities to be exchanged, together with a written instrument of transfer satisfactory to the Registrar duly executed by the Securityholder or such Securityholder's attorney duly authorized in
writing, 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 that the Holder
making the exchange is entitled to receive. 


        The
Company shall not be required to make, and the Registrar need not register, transfers or exchanges of Securities selected for redemption (except, in the case of Securities to be
redeemed in part, the portion thereof not to be redeemed) or any Securities in respect of which a Purchase Notice or Change in Control Purchase Notice has been given and not withdrawn by the Holder
thereof in accordance with the terms of this Indenture (except, in the case of Securities to be purchased in part, the portion thereof not to be purchased) or any Securities for a period of
15 days before the mailing of a notice of redemption of Securities to be redeemed. 


10











  



        (b)   Notwithstanding
any provision to the contrary herein, so long as a Global Security remains outstanding and is held by or on behalf of the Depositary, transfers of a
Global Security, in whole or in part, shall be made only in accordance with Section 2.12 and this Section 2.06(b). Transfers of a Global Security shall be limited to transfers of such
Global Security in whole, or in part, to nominees of the Depositary or to a successor of the Depositary or such successor's nominee. 



        (c)   Successive
registrations and registrations of transfers and exchanges as aforesaid may be made from time to time as desired, and each such registration shall be noted on
the register for the Securities. 


        (d)   Any
Registrar appointed pursuant to Section 2.03 hereof shall provide to the Trustee such information as the Trustee may reasonably require in connection with the
delivery by such Registrar of Securities upon transfer or exchange of Securities. 


        (e)   No
Registrar shall be required to make registrations of transfer or exchange of Securities during any periods designated in the text of the Securities or in this
Indenture as periods during which such registration of transfers and exchanges need not be made. 


        (f)    If
Securities are issued upon the transfer, exchange or replacement of Securities subject to restrictions on transfer and bearing the legends set forth on the forms of
Securities attached hereto as Exhibits A-1 and A-2 setting forth such restrictions (collectively, the "Legend"), or if a request
is made to remove the Legend on a Security, the Securities so issued shall bear the Legend, or the Legend shall not be removed, as the case may be, unless there is delivered to the Company and the
Registrar such satisfactory evidence, which shall include an Opinion of Counsel, as may be reasonably required by the Company and the Registrar, that neither the Legend nor the restrictions on
transfer set forth therein are required to ensure that transfers thereof comply with the provisions of Rule 144A or Rule 144 under the Securities Act or that such Securities are not
"restricted" within the meaning of Rule 144 under the Securities Act. Upon (i) provision of such satisfactory evidence, or (ii) notification by the Company to the Trustee and
Registrar of the sale of such Security pursuant to a registration statement that is effective at the time of such sale, the Trustee, at the written direction of the Company, shall authenticate and
deliver a Security that does not bear the Legend. If the Legend is removed from the face of a Security and the Security is subsequently held by an Affiliate of the Company, the Legend shall be
reinstated. 




        SECTION
2.07.    Replacement Securities.    If any mutilated Security is surrendered to the Trustee, or the Company
and the Trustee receive evidence to their satisfaction of the destruction, loss or theft of any Security, and there is delivered to the Company and the Trustee such security or indemnity as may be
required by them to save each of them harmless, then, in the absence of actual knowledge by the Company or the Trustee that such Security has been acquired by a protected purchaser (within the meaning
of Section 8-303 of the Uniform Commercial Code), the Company shall execute, and upon the Company's written request the Trustee shall authenticate and deliver, in exchange for any
such mutilated Security or in lieu of any such destroyed, lost or stolen Security, a new Security of like tenor and Principal Amount, 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 is about to be purchased by the Company pursuant to Article III
hereof, the Company in its discretion may, instead of issuing a new Security, pay or purchase such Security, as the case may be. 



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


11







 



        Every
new Security issued pursuant to this Section in lieu of any mutilated, destroyed, lost or stolen Security shall constitute an 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 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
2.08.    Outstanding Securities; Determinations of Holders' Action.    Securities outstanding at any time are
all the Securities authenticated by the Trustee, except for those cancelled by it, those paid pursuant to Section 2.07, those delivered to it for cancellation pursuant to Section 2.10
and those described in this Section 2.08 as not outstanding. A Security does not cease to be outstanding because the Company or an Affiliate thereof holds the Security; provided, however, that
in determining whether the Holders of the requisite Principal Amount of Securities have given or concurred in 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 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 of which a Responsible Officer of the
Trustee has actual knowledge to be so owned shall be so disregarded. Subject to the foregoing, only Securities outstanding at the time of such determination shall be considered in any such
determination (including, without limitation, determinations pursuant to Articles VI and IX). 


        If
a Security is replaced pursuant to Section 2.07, it ceases to be outstanding unless the Trustee receives proof satisfactory to it that the replaced Security is held by a
protected purchaser. 


        If
the Paying Agent holds, in accordance with this Indenture, on a Redemption Date, or on the Business Day following a Purchase Date or a Change in Control Purchase Date, or on Stated
Maturity, money sufficient to pay amounts owed with respect to Securities payable on that date, then immediately after such Redemption Date, Purchase Date, Change in Control Purchase Date or Stated
Maturity, as the case may be, such Securities shall cease to be outstanding and interest (including contingent interest, if any) and Liquidated Damages, if any, on such Securities shall cease to
accrue; provided that if such Securities are to be redeemed, notice of such redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made. 


        If
a Security is converted in accordance with Article X, then from and after the time of conversion on the Conversion Date, such Security shall cease to be outstanding and
interest (including contingent interest, if any) and Liquidated Damages, if any, shall cease to accrue on such Security. 


        SECTION
2.09.    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 conclusively evidenced by their execution of such Securities. 


        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 the office or agency of the Company designated for such purpose pursuant to
Section 2.03, without charge to the Holder. Upon surrender for cancellation of any one or more temporary Securities, the Company shall 


12







 



execute
and the Trustee shall authenticate and deliver in exchange therefor a like Principal Amount of definitive Securities of authorized denominations. Until so exchanged, the temporary Securities
shall in all respects be entitled to the same benefits under this Indenture as definitive Securities. 


        SECTION
2.10.    Cancellation.    All Securities surrendered for payment or purchase by the Company pursuant to
Article III, conversion, redemption or registration of transfer or exchange (other than Securities exchanged pursuant to Section 10.02), shall, if surrendered to any person other than
the Trustee, be delivered to the Trustee and shall be promptly cancelled by it. The Company may at any
time deliver to the Trustee for cancellation any Securities previously authenticated and delivered hereunder that the Company may have acquired in any manner whatsoever, and all Securities so
delivered shall be promptly cancelled by the Trustee. The Company may not issue new Securities to replace Securities it has paid or delivered to the Trustee for cancellation or that any Holder has
converted pursuant to Article X. No Securities shall be authenticated in lieu of or in exchange for any Securities cancelled as provided in this Section, except as expressly permitted by this
Indenture. All cancelled Securities held by the Trustee shall be disposed of by the Trustee in accordance with the Trustee's customary procedure. 


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


        SECTION
2.12.    Global Securities.    (a) A Global Security may not be transferred, in whole or in part, to
any Person other than the Depositary or a nominee or any successor thereof, and no such transfer to any such other Person may be registered; provided that the foregoing shall not prohibit any transfer
of a Security that is issued in exchange for a Global Security but is not itself a Global Security. No transfer of a Security to any Person shall be effective under this Indenture or the Securities
unless and until such Security has been registered in the name of such Person. Notwithstanding any other provisions of this Indenture or the Securities, transfers of a Global Security, in whole or in
part, shall be made only in accordance with Section 2.06 and this Section 2.12. 



        (b)   Subject
to the succeeding paragraph, every Security shall be subject to the restrictions on transfer provided in the Legend including the delivery of an Opinion of
Counsel, if so provided. Whenever any Restricted Security is presented or surrendered for registration of transfer or for exchange for a Security registered in a name other than that of the Holder,
such Security must be accompanied by a certificate in substantially the form set forth in Exhibit B, dated the date of such surrender and signed by the Holder of such Security, as to compliance
with such restrictions on transfer. The Registrar shall not be required to accept for such registration of transfer or exchange any Security not so accompanied by a properly completed certificate. 


        (c)   The
restrictions imposed by the Legend upon the transferability of any Security shall cease and terminate when such Security has been sold pursuant to an effective
registration statement under the Securities Act or transferred in compliance with Rule 144 under the Securities Act (or any successor provision thereto) or, if earlier, upon the expiration of
the holding period applicable to sales thereof under Rule 144(k) under the Securities Act (or any successor provision). Any Security as to which such restrictions on transfer shall have expired
in accordance with their terms or shall have terminated may, upon a surrender of such Security for exchange to the Registrar in accordance with the provisions of this Section 2.12 (accompanied,
in the event that such restrictions on transfer have terminated by reason of a transfer in compliance with Rule 144 



13







 




or
any successor provision, by an Opinion of Counsel having substantial experience in practice under the Securities Act and otherwise reasonably acceptable to the Company, addressed to the Company and
in form acceptable to the Company, to the effect that the transfer of such Security has been made in compliance with Rule 144 or such successor provision), be exchanged for a new Security, of
like tenor and aggregate Principal Amount, which shall not bear the Legend. The Company shall inform the Trustee of the effective date of any 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 Opinion of Counsel or registration statement. 


        (d)   As
used in the preceding two paragraphs of this Section 2.12, the term "transfer" encompasses any sale, pledge, transfer, hypothecation or other disposition of
any Security. 


        (e)   The
provisions of clauses (i), (ii), (iii) and (iv) below shall apply only to Global Securities: 



          (i)  Notwithstanding
any other provisions of this Indenture or the Securities, a Global Security shall not be exchanged in whole or in part for a Security registered in the
name of any Person other than the Depositary or one or more nominees thereof; provided that a Global Security may be exchanged for Securities registered in the names of any person designated by the
Depositary in the event that (x) the Depositary has notified the Company and the Trustee that it is unwilling or unable to continue as Depositary for such Global Security or such Depositary has
ceased to be a "clearing agency" registered under the Exchange Act, and a successor Depositary is not appointed by the Company within 90 days, (y) the Company has provided the Depositary
and the Trustee with written notice that it has decided to discontinue use of the system of book-entry transfer through the Depositary or any successor Depositary or (z) an Event of
Default has occurred and is continuing with respect to the Securities. Any Global Security exchanged pursuant to clause (x) or (y) above shall be so exchanged in whole and not in part,
and any Global Security exchanged pursuant to clause (z) above may be exchanged in whole or from time to time in part as directed by the Depositary. Any Security issued in exchange for a Global
Security or any portion thereof shall be a Global Security; provided that any such Security so issued that is registered in the name of a Person other than the Depositary or a nominee thereof shall
not be a Global Security. 


         (ii)  Securities
issued in exchange for a Global Security or any portion thereof shall be issued in definitive, fully registered form, without interest coupons, shall have an
aggregate Principal Amount equal to that of such Global Security or portion thereof to be so exchanged, shall be registered in such names and be in such authorized denominations as the Depositary
shall designate and shall bear the applicable legends provided for herein. Any Global Security to be exchanged in whole shall be surrendered by the Depositary to the Trustee, as Registrar. With regard
to any Global Security to be exchanged in part, either such Global Security shall be so surrendered for exchange or, if the Trustee is acting as custodian for the Depositary or its nominee with
respect to such Global Security, the Principal Amount thereof shall be reduced, by an amount equal to the portion thereof to be so exchanged, by means of an appropriate adjustment made on the records
of the Trustee. Upon any such surrender or adjustment, the Trustee shall authenticate and deliver the Security issuable on such exchange to or upon the order of the Depositary or an authorized
representative thereof. 


        (iii)  Subject
to the provisions of clause (v) below, the registered Holder may grant proxies and otherwise authorize any Person, including Agent Members (as defined
below) and persons that may hold interests through Agent Members, to take any action which a holder is entitled to take under this Indenture or the Securities. 




14







 





        (iv)  In
the event of the occurrence of any of the events specified in clause (i) above, the Company will promptly make available to the Trustee a reasonable supply of
Certificated Securities in definitive, fully registered form, without interest coupons. 


         (v)  Neither
any members of, or participants in, the Depositary (collectively, the "Agent Members") nor any other Persons on
whose behalf Agent Members may act shall have any rights under this Indenture with respect to any Global Security registered in the name of the Depositary or any nominee thereof, or under any such
Global Security, and the Depositary or such nominee, as the case may be, may be treated by the Company, the Trustee and any agent of the Company or the Trustee as the absolute owner and holder of such
Global 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 such nominee, as the case may be, or impair, as between the Depositary, its Agent Members and any other person on
whose behalf an Agent Member may act, the operation of customary practices of such Persons governing the exercise of the rights of a holder of any Security. 





        SECTION
2.13.    CUSIP Numbers.    The Company may issue the Securities with one or more "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 III  


 REDEMPTION AND PURCHASES  


        SECTION
3.01.    Right To Redeem; Notices To Trustee.    (a)    Optional
Redemption.    The Company, at its option, may redeem the Securities in accordance with the provisions of paragraphs 5 and 7 of the Securities and at the Redemption
Price specified in paragraph 5 of the Securities, together with accrued and unpaid interest (including contingent interest, if any) and Liquidated Damages, if any, thereon up to but not
including the Redemption Date; provided that if the Redemption Date is on or after an interest record date, but on or prior to the related interest payment date, interest will be payable to the
Holders in whose names the Securities are registered at the close of business on the relevant record date for payment of such interest. 


        (b)    Notice to Trustee.    If the Company elects to redeem Securities pursuant to this Section 3.01, it shall
notify the Trustee in writing of the Redemption Date, the Principal Amount of Securities to be redeemed and the Redemption Price. The Company shall give the notice to the Trustee provided for in this
Section 3.01(b) by a Company Order at least 45 days before the Redemption Date (unless a shorter notice shall be satisfactory to the Trustee). 


        SECTION
3.02.    Selection of Securities to Be Redeemed.    If less than all the Securities are to be redeemed, unless
the procedures of the Depositary provide otherwise, the Trustee shall select the Securities to be redeemed on a pro rata basis. The Trustee may select for redemption portions of the Principal Amount
of Securities that have denominations of $1,000 and integral multiples thereof. 


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


15







 



        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 possible) to be the portion selected for redemption. Securities that 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
3.03.    Notice of Redemption.    At least 20 days (and, in the case of DTC eligible Securities, 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 each Holder of Securities to be
redeemed. 


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



        (a)   the
Redemption Date; 


        (b)   the
Redemption Price; 


        (c)   the
Conversion Price; 


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



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


        (f)    that
Holders who want to convert Securities must satisfy the requirements set forth in paragraph 8 of the Securities; 


        (g)   that
Securities called for redemption must be surrendered to the Paying Agent to collect the Redemption Price therefor, together with all accrued and unpaid interest; 



        (h)   if
fewer than all the outstanding Securities are to be redeemed, the certificate numbers, if any, and Principal Amounts of the particular Securities to be redeemed; 


        (i)    that,
unless the Company defaults in making payment of such Redemption Price, interest (including contingent interest, if any) and Liquidated Damages, if any, on
Securities called for redemption will cease to accrue on and after the Redemption Date and the Securities will cease to be convertible; and 


        (j)    the
CUSIP number of the Securities. 




        At
the Company's request, the Trustee shall give the notice of redemption in the Company's name and at the Company's expense; provided that the Company makes such request prior to the
date by which such notice of redemption must be given to Holders in accordance with this Section 3.03 and the Company provides the Trustee with all information required for such notice of
redemption. 


        SECTION
3.04.    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 which 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, together with accrued and unpaid interest (including contingent interest, if any) and
Liquidated Damages, if any, thereon, up to but not including the Redemption Date. 


        SECTION
3.05.    Deposit of Redemption Price.    Prior to 10:00 a.m. (New York City time) on the 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) an amount of money in
immediately available funds sufficient to pay the Redemption Price of all Securities to be redeemed on that date, together with accrued and unpaid interest (including contingent interest, if any) and
Liquidated Damages, if any, thereon, up to but not including the Redemption Date other than 


16







 



Securities
or portions of Securities called for redemption that 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 X. 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
3.06.    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, 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 unredeemed portion of the Principal Amount of the Security surrendered. 


        SECTION
3.07.    Reserved.    


        SECTION
3.08.    Purchase of Securities at Option of the
Holder.    (a)    General.    Securities shall be purchased by the Company in accordance with the
provisions of paragraph 6 of the Securities on March 8, 2009, March 8, 2014 and March 8, 2019 (each, a "Purchase Date") at a
purchase price per Security equal to 100% of the aggregate Principal Amount of the Security (the "Purchase Price"), together with accrued and unpaid
interest (including contingent interest, if any) and Liquidated Damages, if any, thereon, up to but not including the Purchase Date; provided that if the Purchase Date is on or after an interest
record date but on or prior to the related interest payment date, interest and Liquidated Damages, if any, will be payable to the Holders in whose names the Securities are registered at the close of
business on the relevant record date. 


        Purchases
of Securities hereunder shall be made, at the option of the Holder thereof, upon: 




          (i)  delivery
to the Company and the Paying Agent by the Holder of a written notice of purchase (a "Purchase Notice") at any
time from the opening of business on the date that is 20 Business Days prior to the Purchase Date until the close of business on the Business Day prior to such Purchase Date stating: 



        (A)  the
certificate number of the Security which the Holder will deliver to be purchased; 



        (B)  the
portion of the Principal Amount of the Security which the Holder will deliver to be purchased, which portion must be in principal amounts at maturity of $1,000 or an
integral multiple thereof; 


        (C)  that
such Security shall be purchased as of the Purchase Date pursuant to the terms and conditions specified in paragraph 6 of the Securities and in this
Indenture; and 




         (ii)  delivery
of such Security to the Paying Agent prior to, on or after the Purchase Date (together with all necessary endorsements) at the offices of the Paying Agent,
such delivery being a condition to receipt by the Holder of the Purchase Price therefor, together with accrued and unpaid interest (including contingent interest, if any) and Liquidated Damages, if
any; provided, however, that such Purchase Price, together with accrued and unpaid interest (including contingent interest, if any) and Liquidated Damages, if any, shall be so paid pursuant to this
Section 3.08 only if the Security so delivered to the Paying Agent shall conform in all respects to the description thereof in the related Purchase Notice, as determined by the Company in its
sole discretion. 





        The
Company shall purchase from the Holder thereof, pursuant to this Section 3.08, a portion of a Security if the Principal Amount of such portion is $1,000 or an integral
multiple of $1,000. Provisions of this Indenture that apply to the purchase of all of a Security also apply to the purchase of such portion of such Security. 


17







 

        Any
purchase by the Company contemplated pursuant to the provisions of this Section 3.08 shall be consummated by the delivery of the consideration to be received by the Holder
promptly following the later of the Purchase Date and the time of delivery of the Security. 



        Notwithstanding
anything herein to the contrary, any Holder delivering to the Paying Agent the Purchase Notice contemplated by this Section 3.08(a) shall have the right to
withdraw such Purchase Notice at any time prior to the close of business on the Business Day prior to the Purchase Date by delivery of a written notice of withdrawal to the Paying Agent at the
principal office of the Paying Agent in accordance with Section 3.10. 


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



        (b)    Manner of Payment of Purchase Price.    The Purchase Price of Securities in respect of which a Purchase Notice
pursuant to Section 3.08 has been given shall be paid in U.S. legal tender ("Cash"). 


        (c)    Company Notice.    In connection with any purchase of Securities pursuant to Section 3.08, the Company
shall give written notice of the Purchase Date to the Holders (the "Company Notice"). The Company Notice shall be sent by first-class mail to the
Trustee and to each Holder not less than 20 Business Days prior to any Purchase Date (the "Company Notice Date"). Each Company Notice shall include a
form of Purchase Notice to be completed by a Securityholder and shall state: 



          (i)  the
Purchase Price and the Conversion Price; 


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


        (iii)  that
Securities as to which a Purchase Notice has been given may be converted if they are otherwise convertible only in accordance with Article X hereof and
paragraph 8 of the Securities if the applicable Purchase Notice has been withdrawn in accordance with the terms of this Indenture; 


        (iv)  that
Securities must be surrendered to the Paying Agent to collect payment; 


         (v)  that
the Purchase Price for, and any accrued and unpaid interest (including contingent interest, if any) and Liquidated Damages, if any, on, any Security as to which a
Purchase Notice has been given and not withdrawn will be paid promptly following the later of the Purchase Date and the time of surrender of such Security as described in subclause (iv) above; 



        (vi)  the
procedures the Holder must follow to exercise rights under Section 3.08 and a brief description of those rights; 


       (vii)  briefly,
the conversion rights of the Securities; 


      (viii)  the
procedures for withdrawing a Purchase Notice (as specified in Section 3.10); 


        (ix)  that,
unless the Company defaults in making payment on Securities for which a Purchase Notice has been submitted, interest (including contingent interest), and
Liquidated Damages, if any, on such Securities will cease to accrue on the Purchase Date; and 


         (x)  the
CUSIP number of the Securities. 





        At
the Company's request, the Trustee shall give such Company Notice in the Company's name and at the Company's expense; provided, however, that the Company makes such request at least
three (3) Business Days prior to the date by which such Company Notice must be given to the Holders and that, in all cases, the text of such Company Notice shall be prepared by the Company. 


18







 

        SECTION
3.09.    Purchase of Securities at Option of the Holder upon Change in Control.    (a) If at any time
that Securities remain outstanding there shall have occurred a Change in Control (as hereinafter
defined), Securities shall be repurchased by the Company, at the option of the Holder thereof, at a purchase price (the "Change in Control Purchase
Price") equal to the principal amount thereof plus accrued and unpaid interest (including contingent interest, if any) and Liquidated Damages, if any, thereon, up to and
including the date (the "Change in Control Purchase Date") fixed by the Company that is not less than 45 days nor more than 60 days after
the date of the Company Notice, subject to satisfaction by or on behalf of the Holder of the requirements set forth in Section 3.09(c). 


        A
"Change in Control" shall be deemed to have occurred at such time after the original issuance of the Securities as any of the following
occur: 




          (i)  any
sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of the Company and its
Subsidiaries, taken as a whole, to any person or group of related persons, as defined in Section 13(d) of the Exchange Act (a "Group"); 


         (ii)  the
approval by the holders of Capital Stock of the Company of any plan or proposal for the liquidation or dissolution of the Company (whether or not otherwise in
compliance with the provisions of this Indenture); 


        (iii)  any
person or Group shall become the beneficial owner of shares representing more than 50% of the aggregate ordinary voting power represented by the Company's issued
and outstanding Voting Stock; or 


        (iv)  the
first day on which a majority of the members of the Company's Board of Directors are not Continuing Directors (as hereinafter defined). 





        "Beneficial Owner" shall be determined in accordance with Rule 13d-3 promulgated by the SEC under the Exchange Act or
any successor provision, except that a Person shall be deemed to have "beneficial ownership" of all securities that such Person has the right to acquire, whether exercisable immediately or only after
the passage of time. 


        "Continuing Directors" means, as of any date of determination, any member of the Board of Directors of the Company who (i) was a
member of such Board of Directors on the date of the original issuance of the Securities or (ii) was nominated for election or elected to the Board of Directors with the approval of a majority
of the Continuing Directors who were members of such Board of Directors at the time of such nomination or election. 



        (b)   Within
30 days after the occurrence of a Change in Control, the Company shall mail a written notice of the Change in Control by first-class mail to the Trustee
and to each Holder (and to beneficial
owners as required by applicable law). The notice shall include a form of Change in Control Purchase Notice to be completed by the Securityholder and shall state: 



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


         (ii)  the
date by which the Change in Control Purchase Notice pursuant to this Section 3.09 must be given; 


        (iii)  the
Change in Control Purchase Date; 



        (iv)  the
Change in Control Purchase Price; 


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


        (vi)  the
Conversion Price and any adjustments thereto; 




19







 





       (vii)  that
Securities as to which a Change in Control Purchase Notice has been given may be converted pursuant to Article X hereof only if the Change in Control
Purchase Notice has been withdrawn in accordance with the terms of this Indenture; 


      (viii)  that
Securities must be surrendered to the Paying Agent to collect payment; 


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


         (x)  briefly,
the procedures the Holder must follow to exercise rights under this Section 3.09; 


        (xi)  briefly,
the conversion rights of the Securities; 


       (xii)  the
procedures for withdrawing a Change in Control Purchase Notice (as specified in Section 3.10); 


      (xiii)  that,
unless the Company defaults in making payment of such Change in Control Purchase Price, interest (including contingent interest, if any) and Liquidated Damages,
if any, on Securities surrendered for purchase by the Company will cease to accrue on and after the Change in Control Purchase Date; and 


      (xiv)  the
CUSIP number of the Securities. 




        (c)   A
Holder may exercise its rights specified in Section 3.09(a) upon delivery of a written notice of purchase (a "Change in Control Purchase
Notice"), together with the Securities subject thereto, to the Company and the Paying Agent at any time prior to the close of business on the third Business Day prior to the
Change in Control Purchase Date, stating: 



          (i)  the
certificate number of the Security that the Holder will deliver to be purchased; 


         (ii)  the
portion of the Principal Amount of the Security which the Holder will deliver to be purchased, which portion must be $1,000 or an integral multiple thereof; and 



        (iii)  that
such Security shall be purchased pursuant to the terms and conditions specified in paragraph 6 of the Securities. 





        The
delivery of such Security to the Paying Agent prior to, on or after the Change in Control Purchase Date (together with all necessary endorsements) at the offices of the Paying Agent
shall be a condition to the receipt by the Holder of the Change in Control Purchase Price therefor; provided, however, that such Change in Control Purchase Price shall be so paid pursuant to this
Section 3.09 only if the Security so delivered to the Paying Agent shall conform in all respects to the description thereof set forth in the related Change in Control Purchase Notice. 


20









   
        The Company shall purchase from the Holder thereof, pursuant to this Section 3.09, a portion of a Security if the Principal Amount of such portion is $1,000 or an integral
multiple of $1,000. Provisions of this Indenture that apply to the purchase of all of a Security also apply to the purchase of such portion of such Security. 


        Any
purchase by the Company contemplated pursuant to the provisions of this Section 3.09 shall be consummated by the delivery of the consideration to be received by the Holder
promptly following the later of the Change in Control Purchase Date and the time of delivery of the Security to the Paying Agent in accordance with this Section 3.09. 


        Notwithstanding
anything herein to the contrary, any Holder delivering to the Paying Agent the Change in Control Purchase Notice contemplated by this Section 3.09(c) shall have
the right to withdraw such Change in Control Purchase Notice at any time prior to the close of business on the Business Day preceding the Change in Control Purchase Date by delivery of a written
notice of withdrawal to the Paying Agent in accordance with Section 3.10. 


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



        Notwithstanding
anything herein to the contrary, the Company's obligations pursuant to this Section 3.09 shall be satisfied if a third party makes a Change of Control offer in the
manner and at the times and otherwise in compliance in all material respects with the requirements of this Section 3.09 and purchases all Securities properly tendered and not withdrawn pursuant
to the requirements of this Section 3.09. 


        SECTION
3.10.    Effect of Purchase Notice or Change in Control Purchase Notice.    Upon receipt by the Paying Agent
of the Purchase Notice or Change in Control Purchase Notice specified in Section 3.08 or Section 3.09(c), as applicable, the Holder of the Security in respect of which such Purchase
Notice or Change in Control Purchase Notice, as the case may be, was given shall (unless such Purchase Notice or Change in Control Purchase Notice is withdrawn as specified in the following two
paragraphs) thereafter be entitled to receive solely the Purchase Price, together with all accrued and unpaid interest (including contingent interest, if any) and Liquidated Damages, if any, thereon,
to but not including the Purchase Date or Change in Control Purchase Price, as the case may be, with respect to such Security. Such Purchase Price, together with accrued and unpaid interest (including
contingent interest, if any) and Liquidated Damages, if any, thereon, to but not including the Purchase Date or Change in Control Purchase Price, as the case may be, shall be paid to such Holder,
subject to receipt of funds and/or
securities by the Paying Agent, promptly following the later of (x) the Purchase Date or the Change in Control Purchase Date, as the case may be, with respect to such Security (provided that
the conditions in Section 3.08 or Section 3.09(c), as applicable, 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 3.08 or Section 3.09(c), as applicable. Securities in respect of which a Purchase Notice or Change in Control Purchase Notice, as the case may be, has been
given by the Holder thereof may not be converted pursuant to Article X hereof on or after the date of the delivery of such Purchase Notice or Change in Control Purchase Notice, as the case may
be, unless such Purchase Notice or Change in Control Purchase Notice, as the case may be, has first been validly withdrawn as specified in the following paragraph. 


        A
Purchase Notice or Change in Control Purchase Notice, as the case may be, may be withdrawn by means of a written notice of withdrawal delivered to the office of the Paying Agent in
accordance with the Purchase Notice or Change in Control Purchase Notice, as the case may be, at any time prior 


21







 



to
the close of business on the Business Day prior to the Purchase Date or prior to the close of business on the Change in Control Purchase Date, as the case may be, specifying: 




          (i)  the
certificate number, if any, of the Security in respect of which such notice of withdrawal is being submitted, 


         (ii)  the
Principal Amount of the Security with respect to which such notice of withdrawal is being submitted, and 



        (iii)  the
Principal Amount, if any, of such Security which remains subject to the original Purchase Notice or Change in Control Purchase Notice, as the case may be, and
which has been or will be delivered for purchase by the Company. 





        SECTION
3.11.    Deposit of Purchase Price or Change in Control Purchase Price.    Prior to 10:00 a.m. (New
York City time) on the Business Day following the Purchase Date or the Change in Control Purchase Date, as the case may be, 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 in Section 2.04) an amount of money (in immediately
available funds) sufficient to pay the aggregate Purchase Price or Change in Control Purchase Price, as the case may be, together with all accrued and unpaid interest (including contingent interest,
if any) and Liquidated Damages, if any, thereon, to but not including the Purchase Date or Change in Control Purchase Date, as the case may be, of all the Securities or portions thereof which are to
be purchased as of the Purchase Date or Change in Control Purchase Date, as the case may be. 


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


        SECTION
3.13.    Covenant to Comply with Securities Laws upon Purchase of Securities.    When complying with the
provisions of Section 3.08 or 3.09 hereof (provided that such offer or purchase constitutes an "issuer tender offer" for purposes of Rule 13e-4 (which term, as used herein,
includes any successor provision thereto) under the Exchange Act at the time of such offer or purchase), the Company shall (i) comply in all material respects 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
in all material respects with all Federal and state securities laws so as to permit the rights and obligations under Section 3.08 or 3.09 to be exercised in the time and in the manner specified
in Section 3.08 or 3.09. 


        SECTION
3.14.    Repayment to the Company.    The Trustee and the Paying Agent shall return to the Company any cash
that remains unclaimed as provided in paragraph 11 of the Securities, together with interest or dividends, if any, thereon (subject to the provisions of Section 7.01(f)), held by them
for the payment of the Purchase Price or Change in Control Purchase Price, as the case may be, and accrued and unpaid interest (including contingent interest, if any) and Liquidated Damages, if any;
provided, however, that to the extent that the aggregate amount of cash deposited by the Company pursuant to Section 3.11 exceeds the aggregate Purchase Price or Change in Control Purchase
Price, as the case may be, of the Securities or portions thereof which the Company is obligated to purchase as of the Purchase Date or Change in Control Purchase Date, as the case may be, and accrued
and unpaid interest thereon, if any (including contingent interest, if any) and Liquidated Damages, if any, then, unless otherwise agreed in writing with the Company, promptly after the Business Day
following the 


22







 



Purchase
Date or Change in Control Purchase Date, as the case may be, the Trustee shall return any such excess to the Company together with interest or dividends, if any, thereon (subject to the
provisions of Section 7.01(f)). 


ARTICLE IV  


 COVENANTS  


        SECTION
4.01.    Payment of Securities.    The Company shall promptly make all payments in respect of the Securities
on the dates and in the manner provided in the Securities or pursuant to this Indenture. Any amounts to be given to the Trustee or Paying Agent, as the case may be, shall be deposited with the Trustee
or Paying Agent, as the case may be, in immediately available funds by 10:00 a.m. (New York City time) by the Company. Interest installments (including contingent interest, if any), Liquidated
Damages, Principal Amount, Redemption Price, Purchase Price, Change in Control Purchase Price and interest, if any, due on overdue amounts shall be considered paid on the applicable date due if at
10:00 a.m. (New York City time) on such date (or, in the case of a Purchase Price or Change in Control Purchase Price, on the Business Day following the applicable Purchase Date or Change in
Control Purchase Date, as the case may be) the Trustee or the Paying Agent, as the case may be, holds, in accordance with this Indenture, money sufficient to pay all such amounts then due. 



        The
Company shall, to the extent permitted by law, pay interest on overdue amounts at the rate per annum set forth in paragraph 1 of the Securities, compounded semiannually, which
interest shall accrue from the date such overdue amount was originally due to the date payment of such amount, including interest thereon, has been made or duly provided for. All such interest shall
be payable on demand. The accrual of such interest on overdue amounts shall be in addition to the continued accrual of interest on the Securities. 


        SECTION
4.02.    SEC and Other Reports.    The Company shall file with the Trustee, within 15 days after it
files such annual and quarterly reports, information, documents and other reports with the SEC, copies of its annual report and of the information, documents and other reports (or copies of such
portions of any of the foregoing as the SEC may by rules and regulations prescribe) which the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. In
the event the Company is at any time no longer subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, it shall continue to provide the Trustee with reports containing
substantially the same information as would have been required to be filed with the SEC had the Company continued to have been subject to such reporting requirements. In such event, such reports shall
be provided to the Trustee at the times the Company would have been required to provide reports had it continued to have been subject to such reporting requirements. Delivery of such reports,
information and documents is for informational purposes only and the Trustee's receipt of such shall not constitute notice or constructive notice of any information contained therein or determinable
from information contained therein. 


        In
addition, the Company shall comply with the other provisions of TIA Section 314(a). 


        SECTION
4.03.    Compliance Certificate.    The Company shall deliver to the Trustee within 120 days after the
end of each fiscal year of the Company (beginning with the fiscal year ended December 31, 2004) an Officers' Certificate, stating whether or not to the best knowledge of the signers thereof the
Company is in default in the performance and observance of any of the terms, provisions and conditions of this Indenture (without regard to any period of grace or requirement of notice provided
hereunder) and if the Company shall be in default, specifying all such Defaults and the nature and status thereof of which they may have knowledge. 


23







 

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


        SECTION
4.05.    Maintenance of Office or Agency.    The Company will maintain in the Borough of Manhattan, The City
of New York, an office or agency of the Trustee, Registrar, Paying Agent and Conversion Agent where Securities may be presented or surrendered for payment, where Securities may be surrendered for
registration of transfer, exchange, purchase, redemption or conversion and where notices and demands to or upon the Company in respect of the Securities and this Indenture may be served. The Corporate
Trust Office of the Trustee shall initially be such office or agency for all of the aforesaid purposes. The Company shall give prompt written notice to the Trustee of the location, and of any change
in the location, of any such office or agency (other than a change in the location of the office of the Trustee). If at any time the Company shall fail to maintain any such required office or agency
or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the address of the Trustee set forth in
Section 12.02. 


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


        SECTION
4.06.    Delivery of Certain Information.    At any time when the Company is not subject to Section 13
or 15(d) of the Exchange Act, upon the request of a Holder or any beneficial owner of Securities or holder or beneficial owner of Common Stock delivered upon conversion thereof, the Company will
promptly furnish or cause to be furnished Rule 144A Information (as defined below) to such Holder or any beneficial owner of Securities or holder or beneficial owner of Common Stock, or to a
prospective purchaser of any such security designated by any such holder, as the case may be, to the extent required to permit compliance by such Holder or holder with Rule 144A under the
Securities Act in connection with the resale of any such security. "Rule 144A Information" shall be such information as is specified pursuant to
Rule 144A(d)(4) under the Securities Act or any successor
provisions. Whether a person is a beneficial owner shall be determined by the Company to the Company's reasonable satisfaction. 


        SECTION
4.07.    Tax Treatment of Securities.    The Company and the Holders, by purchasing the Securities, agree that
(i) the Securities are contingent payment debt instruments as described in Treasury Regulations Section 1.1275-4, (ii) each Holder shall be bound by the Company's
application of the Treasury Regulations to the Securities, including the Company's determination that the rate at which interest will be deemed to accrue on the Securities for United States federal
income tax purposes, will be 9.15% compounded semiannually, which is the rate comparable to the rate at which the Company would borrow on a noncontingent, nonconvertible borrowing with no contingent
payments, but with terms and conditions otherwise comparable to the Securities, (iii) each Holder shall use the projected payment schedule with respect to the Securities provided by the Company
to the Holder, as provided in Treasury Regulations Section 1.1275-4(b)(4), to determine its interest accruals and adjustments as provided in Treasury Regulations
Section 1.1275-4(b)(4)(iv), (iv) for purposes of Treasury Regulations Section 1.1275-4, to treat the fair market value of any Common Stock received upon
any conversion of the Securities as a contingent payment, and (v) the Company and each Holder will not take any position on a tax return inconsistent with (i), (ii), or (iii), unless required
by applicable law. 


        On
conversion of the Securities, that portion of accrued interest including accrued contingent interest with respect to the converted Securities shall not be canceled, extinguished or
forfeited, but rather shall be deemed to be paid in full to the Holder thereof through delivery of the Common Stock 


24







 



(together
with the cash payment, if any, in lieu of fractional shares) in exchange for the Securities being converted pursuant to the provisions hereof, and the fair market value of such shares of
Common Stock (together with any such cash payment in lieu of fractional shares) shall be treated as issued, to the extent thereof, first in exchange for interest accrued and unpaid through the
conversion date and accrued and unpaid contingent interest, and the balance, if any, of such fair market value of such Common Stock (and any such cash payment) shall be treated as issued in exchange
for the principal amount of the Securities being converted pursuant to the provisions hereof. 


        SECTION
4.08.    Liquidated Damages.    If at any time Liquidated Damages become payable by the Company pursuant to
the Registration Rights Agreement, the Company shall promptly deliver to the Trustee an Officer's Certificate to that effect and stating (i) the amount of such Liquidated Damages that are
payable and (ii) the date on which such damages are payable pursuant to the terms of the Registration Rights Agreement. Unless and until a Responsible Officer of the Trustee receives such
Officer's Certificate, the Trustee may assume without inquiry that no Liquidated Damages are payable. If the Company has paid Liquidated Damages directly to the persons entitled to them, the Company
shall deliver to the Trustee a certificate setting forth the particulars of such payment. 


ARTICLE V  


 SUCCESSOR CORPORATION  


        SECTION
5.01.    When the Company May Merge or Transfer Assets.    The Company shall not consolidate with or merge
with or into any other person or convey, transfer or lease its properties and assets substantially as an entirety to any person, unless: 




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



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


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





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


        The
successor person formed by such consolidation or into which the Company is merged or the successor person to which such conveyance, transfer or lease is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor had been named as the Company herein; and thereafter, except in
the case of a lease and obligations the Company may have under a supplemental indenture pursuant to Section 10.12, the Company shall be discharged from all obligations and covenants under this
Indenture 


25







 



and
the Securities. Subject to Section 9.06, the Company, the Trustee and the successor person shall enter into a supplemental indenture to evidence the succession and substitution of such
successor person and such discharge and release of the Company. 


ARTICLE VI  


 DEFAULTS AND REMEDIES  


        SECTION
6.01.    Events of Default.    Subject to the provisions set forth below in this Section 6.01, an
"Event of Default" occurs if: 



        (a)   the
Company defaults in the payment of interest (including contingent interest, if any) and Liquidated Damages, if any, payable on any Security when the same becomes due
and payable and such default continues for 10 Business Days, whether or not prohibited by Article XI; 


        (b)   the
Company defaults in the payment of the Principal Amount, Redemption Price, Purchase Price or Change in Control Purchase Price on any Security when the same becomes
due and payable, whether at its Stated Maturity, upon redemption, upon declaration, when due for purchase by the Company or otherwise, whether or not prohibited by Article XI; 


        (c)   the
Company fails to comply with any of its agreements in the Securities or this Indenture (other than, in either case, agreements to pay or give the notice described in
clause (g) below) and such failure continues for 30 days after notice to the Company of such failure; 


        (d)   the
Company or a Subsidiary of the Company defaults in the payment when due of Indebtedness in excess of $1,000,000; 


        (e)   the
Company or a Subsidiary of the Company fails to pay when due any final, non-appealable judgments (other than any judgment as to which a reputable
insurance company has accepted full liability) aggregating in excess of $1,000,000, which judgments are not stayed, bonded or discharged within 60 days after their entry; 



        (f)    the
Company fails to issue Common Stock upon conversion of Securities by a Holder in accordance with the provisions of this Indenture; 


        (g)   the
Company fails to give notice to Holders of their right to require the Company to repurchase Securities upon a Change in Control or fails to make a payment to
purchase Securities tendered following a Change in Control, whether or not prohibited by Article XI; 


        (h)   if
a material portion of the Company's or a Subsidiary's assets, which assets represent a material portion of the assets of the Company and its Subsidiaries as a whole,
is attached, seized, subjected to a writ or distress warrant or is levied upon, or comes within the possession of any receiver, trustee, custodian or assignee for the benefit of creditors, and the
same is not terminated or dismissed within 30 days thereafter; 


        (i)    a
court having jurisdiction in the premises shall enter a decree or order for relief in respect of the Company or any Subsidiary of the Company in an involuntary case
under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee or sequestrator (or similar official) of
the Company or for any substantial part of its property or ordering the winding up or liquidation of its affairs and such decree or order shall remain unstayed and in effect for a period of
45 days; or 


        (j)    the
Company or any Subsidiary of the Company shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect,
or consent to the entry of an order for relief in an involuntary case under any such law, or consent to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee
or 



26







 




sequestrator
(or similar official) of the Company or any Subsidiary of the Company or for any substantial part of its property or make any general assignment for the benefit of creditors. 




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


        SECTION
6.02.    Defaults and Remedies.    If an Event of Default (other than an Event of Default specified in
Section 6.01(i) or 6.01(j)) occurs and is continuing, the Trustee by notice to the Company, or the Holders of at least 25% in aggregate Principal Amount of the Securities at the time
outstanding by notice to the Company and the Trustee, may declare the Principal Amount of all the Securities plus accrued and unpaid interest (including contingent interest, if any) and Liquidated
Damages, if any, thereon, through the date of declaration to be immediately due and payable. Upon such a declaration, such Principal Amount plus accrued and unpaid interest (including contingent
interest, if any) and Liquidated Damages, if any, shall become and be immediately due and payable subject to the provisions of Article XI. If an Event of Default specified in
Section 6.01(i) or 6.01(j) occurs and is continuing, the Principal Amount of all the Securities plus accrued and unpaid interest (including contingent interest, if any) and Liquidated
Damages, if any, thereon, shall become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Securityholder. 


        The
Holders of a majority in principal amount of the Securities then outstanding by notice to the Trustee may rescind an acceleration and its consequences if (a) all existing
Events of Default, other than the nonpayment of the principal of and accrued and unpaid interest (including contingent interest, if any) and Liquidated Damages, if any, on the Securities which has
become due solely by such declaration of acceleration, have been cured or waived; (b) the Company has paid or deposited with the Trustee a sum in immediately available funds sufficient to pay
(i) all overdue interest (including contingent interest, if any) and Liquidated Damages, if any, on the Securities, (ii) the principal of any Security which has become due otherwise than
by such declaration of acceleration, and (iii) to the extent the payment of such interest is lawful, interest on overdue installments of interest and Liquidated Damages, if any, and overdue
principal, which has become due otherwise than by such declaration of acceleration; (c) the rescission would not conflict with any judgment or decree of a court of competent jurisdiction; and
(d) all payments due to the Trustee and any predecessor Trustee under Section 7.07 have been made. No such rescission shall affect any subsequent Default or Event of Default or impair
any right consequent thereon. 


        SECTION
6.03.    Other Remedies.    If an Event of Default occurs and is continuing, the Trustee may pursue any
available remedy to collect the payment of the Principal Amount of all the Securities, together with all accrued and unpaid interest (including contingent interest, if any) and Liquidated Damages, if
any, thereon 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 Securityholder 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 to the extent permitted by law. 


        SECTION
6.04.    Waiver of Past Defaults.    The Holders of a majority in aggregate Principal Amount of the Securities
at the time outstanding, by notice in writing to the Trustee (and without notice to any other Securityholder), may waive an existing Default and its consequences, except (a) an Event of Default
described in Section 6.01(a) or 6.01(b), (b) a Default in respect of a provision that under Section 9.02 cannot be amended without the consent of each Securityholder affected or
(c) a Default which constitutes a failure to convert any Security in accordance with the terms of Article X. 


27







 



When
a Default is waived, it is deemed cured, but no such waiver shall extend to any subsequent or other Default or impair any consequent right. This Section 6.04 shall be in lieu of
Section 316(a)(1)(B) of the TIA and such Section 316(a)(1)(B) is hereby expressly excluded from this Indenture, as permitted by the TIA. 



        SECTION
6.05.    Control by Majority.    The Holders of a majority in aggregate Principal Amount of the Securities at
the time outstanding may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or of exercising any trust or power conferred on the Trustee. However,
the Trustee may refuse to follow any direction that conflicts with law or this Indenture or that the Trustee determines in good faith is unduly prejudicial to the rights of other Securityholders or
would involve the Trustee in personal liability unless the Trustee is offered indemnity satisfactory to it. This Section 6.05 shall be in lieu of Section 316(a)(1)(A) of the TIA and such
Section 316(a)(1)(A) is hereby expressly excluded from this Indenture, as permitted by the TIA. 



        SECTION
6.06.    Limitation on Suits.    A Securityholder may not pursue any remedy with respect to this Indenture or
the Securities unless: 



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


        (b)   the
Holders of at least 25% in aggregate Principal Amount of the Securities at the time outstanding make a written request to the Trustee to pursue the remedy; 



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


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


        (e)   the
Holders of a majority in aggregate Principal Amount of the Securities at the time outstanding do not give the Trustee a direction inconsistent with the request
during such 60-day period. 




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


        SECTION
6.07.    Rights of Holders to Receive Payment.    Subject to the provisions of Article XI hereof,
notwithstanding any other provision of this Indenture, the right of any Holder to receive payment of any amount due in respect of the Securities held by such Holder, on or after the respective due
dates expressed in the Securities, and to convert the Securities in accordance with Article X, or to bring suit for the enforcement of any such payment on or after such respective dates or the
right to convert, shall not be impaired or affected adversely without the consent of such Holder. 


        SECTION
6.08.    Collection Suit by Trustee.    If an Event of Default described in Section 6.01(a), 6.01(b) or
6.01(g) occurs and is continuing, the Trustee may recover judgment in its own name and as trustee of an express trust against the Company for the whole amount owing with respect to the Securities and
the amounts provided for in Section 7.07. 


        SECTION
6.09.    Trustee May File Proofs of Claim.    In case of the pendency of any receivership, insolvency,
liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Company or any other obligor upon the Securities or the property of the
Company or of such other obligor or their creditors, the Trustee (irrespective of whether interest installments (including contingent interest, if any), Liquidated Damages, if any, the Principal
Amount, Redemption Price, Purchase Price, Change in Control Purchase Price or interest, if any, due on overdue amounts in respect of the Securities shall then be due and payable as therein expressed
or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the 


28







 



Company
for the payment of any such amount) shall be entitled and empowered, by intervention in such proceeding or otherwise, 



        (a)   to
file and prove a claim for any accrued and unpaid interest installments (including contingent interest, if any), Liquidated Damages, if any, the whole amount of the
Principal Amount, Redemption Price, Purchase Price, Change in Control Purchase Price or interest, if any, due on overdue amounts in respect of the Securities, and to file such other papers or
documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its
agents and counsel or any other amounts due the Trustee under Section 7.07) and of the Holders allowed in such judicial proceeding, and 


        (b)   to
collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same; 




and
any custodian, receiver, assignee, trustee, liquidator, sequestrator or similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay the Trustee any amount due it for the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07. 


        Nothing
herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the 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
6.10.    Priorities.    If the Trustee collects any money pursuant to this Article VI, it shall pay out
the money in the following order: 



FIRST:
to the Trustee for amounts due under Section 7.07; 


SECOND:
to holders of Senior Indebtedness to the extent required by Article XI; 


THIRD:
to Securityholders for amounts due and unpaid on the Securities for any accrued and unpaid interest installments (including contingent interest, if any), the Principal Amount, Redemption Price,
Purchase Price, Change in Control Purchase Price or interest, if any, due on overdue amounts in respect of the Securities, as the case may be, ratably, without preference or priority of any kind,
according to such amounts due and payable on the Securities; and 


FOURTH:
the balance, if any, to the Company. 




        The
Trustee may fix a record date and payment date for any payment to Securityholders pursuant to this Section 6.10. At least 15 days before such record date, the Trustee
shall mail to each Securityholder and the Company a notice that states the record date, the payment date and the amount to be paid. 



        SECTION
6.11.    Undertaking for Costs.    In any suit for the enforcement of any right or remedy under this Indenture
or in any suit against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may require the filing by any party litigant (other than the Trustee) in the suit of an
undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys' fees and expenses, against any party litigant in the suit, having
due regard to the merits and good faith of the claims or defenses made by the party litigant. This Section 6.11 does not apply to a suit by the Trustee, a suit by a Holder pursuant to
Section 6.07 or a suit by Holders of more than 10% in aggregate Principal Amount of the Securities at the time outstanding. This Section 6.11 shall be in lieu of Section 315(e) of
the TIA and such Section 315(e) is hereby expressly excluded from this Indenture, as permitted by the TIA. 


29











   
        SECTION 6.12.    Waiver of Stay, Extension or Usury Laws.    The Company covenants (to the extent that it may
lawfully
do so) that it will not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law or any usury or other law wherever enacted,
now or at any time hereafter in force, which would prohibit or forgive the Company from paying all or any portion of any interest installment (including contingent interest, if any), Liquidated
Damages, if any, the Principal Amount, Redemption Price, Purchase Price, Change in Control Purchase Price or interest, if any, due on overdue amounts in respect of the securities, as contemplated
herein, or which may affect the covenants or the performance of this Indenture; and the Company (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such
law and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law
had been enacted. 


ARTICLE VII  


 TRUSTEE  


        SECTION
7.01.    Duties of Trustee.    (a) If an Event of Default has occurred and is continuing, the Trustee
shall exercise the rights and powers vested in it by this Indenture and use the same degree of care and skill in its exercise as a prudent person would exercise or use under the circumstances in the
conduct of such person's own affairs. 



        (b)   Except
during the continuance of an Event of Default: 



          (i)  the
Trustee need perform only those duties that are specifically set forth in this Indenture and no others; and 


         (ii)  in
the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein,
upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture, but in case of any such certificates or opinions which by any provision hereof are
specifically required to be furnished to the
Trustee, the Trustee shall examine the certificates and opinions to determine whether or not they conform to the requirements of this Indenture, but need not confirm or investigate the accuracy of
mathematical calculations or other facts stated therein. 





        This
Section 7.01(b) shall be in lieu of Section 3.15(a) of the TIA and such Section 315(a) is hereby expressly excluded from this Indenture, as permitted by the
TIA. 



        (c)   The
Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its own willful misconduct, except that: 



          (i)  this
paragraph (c) does not limit the effect of paragraph (b) of this Section 7.01; 


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


        (iii)  the
Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to
Section 6.05. 





        Sections
7.01(c)(i), (ii) and (iii) shall be in lieu of Sections 315(d)(1), 315(d)(2) and 315(d)(3) of the TIA and such Sections 315(d)(1), 315(d)(2) and 315(d)(3) are
hereby expressly excluded from this Indenture, as permitted by the TIA. 



        (d)   Every
provision of this Indenture that in any way relates to the Trustee is subject to Sections 7.01(a), (b), (c) and (e). 



30







 

        (e)   The
Trustee may refuse to perform any duty or exercise any right or power or expend or risk its own funds or otherwise incur any financial liability unless it receives
indemnity satisfactory to it against any loss, liability or expense. 


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




        SECTION
7.02.    Rights of Trustee.    Subject to its duties and responsibilities under the TIA, 



        (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 reasonably believed by it to be genuine and to have been signed or
presented by the proper party or parties; 


        (b)   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 obtain and, in the absence of bad faith or negligence on its part, conclusively rely upon an Officers'
Certificate and/or an Opinion of Counsel; 


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


        (d)   the
Trustee shall not be liable for any action taken, suffered, or omitted to be taken by it in good faith which it reasonably believes to be authorized or within its
rights or powers conferred under this Indenture; 


        (e)   the
Trustee may consult with counsel selected by it and any advice or opinion of such counsel shall be full and complete authorization and protection in respect of any
action taken or suffered or omitted by it hereunder in good faith and in accordance with such advice or opinion of such counsel; 



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


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


        (h)   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, during normal business hours, to examine the
books, records and premises of the Company, personally or by agent or attorney at the sole cost of the Company and shall incur no liability or additional liability of any kind by reason of such
inquiry or investigation; 



31







 




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


        (j)    the
rights, privileges, protections, immunities and benefits given to the Trustee, including its right to be indemnified, are extended to, and shall be enforceable by,
the Trustee in each of its capacities hereunder, and to each agent, custodian 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; and 



        (l)    neither
the Trustee nor any of its officers, directors, employees or agents shall be liable for any action taken or omitted under this Indenture or in connection
therewith except to the extent caused by the Trustee's gross negligence, bad faith or willful misconduct, as determined by the final judgment of a court of competent jurisdiction, no longer subject to
appeal or review. Anything in this Indenture to the contrary notwithstanding, 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. 




        SECTION
7.03.    Individual Rights of Trustee.    The Trustee in its individual or any other capacity may become the
owner or pledgee of Securities and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee. Any Paying Agent, Registrar, Conversion Agent or
co-registrar may do the same with like rights. However, the Trustee must comply with Sections 7.10 and 7.11. 


        SECTION
7.04.    Trustee's Disclaimer.    The Trustee makes no representation as to the validity or adequacy of this
Indenture or the Securities, it shall not be accountable for the Company's use or application of the proceeds from the Securities, it shall not be responsible for any statement in any registration
statement for the Securities under the Securities Act or in any offering document for the Securities, the Indenture or the Securities (other than its certificate of authentication), or the
determination as to which beneficial owners are entitled to receive any notices hereunder. 


        SECTION
7.05.    Notice of Defaults.    If a Default occurs and if it is known to the Trustee, the Trustee shall give
to each Securityholder notice of all current Defaults known to it within 90 days after any such Default occurs or, if later, within 15 days after it is known to the Trustee, unless such
Default shall have been cured or waived before the giving of such notice. Notwithstanding the preceding sentence, except in the case of a Default described in Sections 6.01(a) and 6.01(b), the Trustee
may withhold the notice if and so long as a committee of its Responsible Officers in good faith determines that withholding the notice is in the interests of Securityholders. The second sentence of
this Section 7.05 shall be in lieu of the proviso to Section 315(b) of the TIA and such proviso is hereby expressly excluded from this Indenture, as permitted by the TIA. 


        SECTION
7.06.    Reports by Trustee to Holders.    Within 60 days after each March 31 beginning with the
March 31 following the date of this Indenture, the Trustee shall mail to each Securityholder a brief report dated as of such March 31 that complies with TIA Section 313(a), if
required by such Section 313(a). The Trustee also shall comply with TIA Section 313(b). 


        A
copy of each report at the time of its mailing to Securityholders shall be filed with the SEC and each securities exchange, if any, on which the Securities are listed. The Company
agrees to notify the Trustee promptly whenever the securities become listed on any securities exchange and of any delisting thereof. 


32







 



        SECTION
7.07.    Compensation and Indemnity.    The Company agrees: 



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


        (b)   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 or any documents
executed in connection herewith (including the reasonable compensation and the expenses, advances and disbursements of its agents and counsel), except any such expense, disbursement or advance as may
be attributable to its negligence, bad faith or willful misconduct; and 


        (c)   to
indemnify the Trustee or any predecessor Trustee and their agents, officers, directors and employees for, and to hold them harmless against, any loss, damage, claim,
liability, cost or expense (including attorneys' fees and expenses and taxes (other than taxes based upon, measured by or determined by the income of the Trustee)) incurred without negligence,
misconduct or bad faith on its part, arising out of or in connection with the acceptance or administration of this trust, including the costs and expenses of defending itself against any claim
(whether asserted by the Company or any Holder or any other Person) or liability in connection with the exercise or performance of any of its powers or duties hereunder. 




        To
secure the Company's payment obligations in this Section 7.07, 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 interest installments (including contingent interest, if any), Liquidated Damages, if any, the Principal Amount, Redemption Price, Purchase Price, Change in Control
Purchase Price or interest, if any, due on overdue amounts, as the case may be, in respect of any particular Securities. 


        The
Company's payment obligations pursuant to this Section 7.07 shall survive the discharge of this Indenture or the earlier termination or resignation of the Trustee. When the
Trustee incurs expenses after the occurrence of a Default specified in Section 6.01(e) or Section 6.01(f), the expenses, including the reasonable charges and expenses of its counsel, are
intended to constitute expenses of administration under any bankruptcy law. 



        SECTION
7.08.    Replacement of Trustee.    The Trustee may resign by so notifying the Company; provided, however,
that no such resignation shall be effective until a successor Trustee has accepted its appointment pursuant to this Section 7.08. The Holders of a majority in aggregate Principal Amount of the
Securities at the time outstanding may remove the Trustee by so notifying the Trustee and the Company. The Company shall remove the Trustee if: 



        (a)   the
Trustee fails to comply with Section 7.10; 



        (b)   the
Trustee is adjudged bankrupt or insolvent; 


        (c)   a
receiver or public officer takes charge of the Trustee or its property; or 


        (d)   the
Trustee otherwise becomes incapable of acting. 




        If
the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company shall promptly appoint, by resolution of its Board of Directors, a
successor Trustee. 


        A
successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company satisfactory in form and substance to the retiring Trustee and the
Company. Thereupon the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this
Indenture. The successor Trustee shall mail a notice of its succession to Securityholders. The retiring Trustee shall promptly 


33







 



transfer
all property held by it as Trustee to the successor Trustee, subject to the lien provided for in Section 7.07. 


        If
a successor Trustee does not take office within 30 days after the retiring Trustee gives its notice of resignation or is removed, the retiring Trustee, the Company or the
Holders of a majority in aggregate Principal Amount of the Securities at the time outstanding may petition any court of competent jurisdiction at the expense of the Company for the appointment of a
successor Trustee. 


        If
the Trustee fails to comply with Section 7.10, any Securityholder may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a
successor Trustee. 


        SECTION
7.09.    Successor Trustee by Merger.    If the Trustee consolidates with, merges or converts into, or
transfers all or substantially all its corporate trust business or assets (including the administration of the trust created by this Indenture) to, another corporation, the resulting, surviving or
transferee corporation without any further act shall be the successor Trustee. 



        SECTION
7.10.    Eligibility; Disqualification.    The Trustee shall at all times satisfy the requirements of TIA
Section 310(a)(1). The Trustee (or its parent holding company) shall have a combined capital and surplus of at least $50,000,000 as set forth in its most recent published annual report of
condition. Nothing herein contained shall prevent the Trustee from filing with the SEC the application referred to in the penultimate paragraph of TIA Section 310(b). The Trustee shall comply
with TIA Section 310(b); provided, however, that there shall be excluded from the operation of TIA Section 310(b)(1) any indenture or indentures under which other securities or
certificates of interest or participation in other securities of the Company are outstanding if the requirements for such exclusion set forth in TIA Section 310(b)(1) are met. 


        SECTION
7.11.    Preferential Collection of Claims Against Company.    The Trustee shall comply with TIA
Section 311(a), excluding any creditor relationship listed in TIA Section 311(b). A Trustee who has resigned or been removed shall be subject to TIA Section 311(a) to the extent
indicated therein. 


ARTICLE VIII  


 DISCHARGE OF INDENTURE  



        SECTION
8.01.    Discharge of Liability on Securities.    When (i) the Company delivers to the Trustee all
outstanding Securities (other than Securities replaced pursuant to Section 2.07) for cancellation or (ii) all outstanding Securities have become due and payable and the Company deposits
with the Trustee Cash, in immediately available funds, sufficient to pay all amounts due and owing on all outstanding Securities (other than Securities replaced pursuant to Section 2.07), and
if in either case the Company pays all other sums payable hereunder by the Company, then this Indenture shall, subject to Section 7.07, cease to be of further effect. The Trustee shall join in
the execution of a document prepared by the Company acknowledging satisfaction and discharge of this Indenture on demand at the cost and expense of the Company and accompanied by an Officers'
Certificate and Opinion of Counsel. 


        SECTION
8.02.    Repayment to the Company.    The Trustee and the Paying Agent shall return to the Company upon
written request any money held by them for the payment of any amount with respect to the Securities that remains unclaimed for two years, subject to applicable unclaimed property law. After return to
the Company, as applicable, Holders entitled to the money must look to the Company for payment as general creditors unless an applicable abandoned property law designates another person and the
Trustee and the Paying Agent shall have no further liability to the Securityholders with respect to such money or securities for that period commencing after the return thereof. 


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ARTICLE IX  


 AMENDMENTS  


        SECTION
9.01.    Without Consent of Holders.    The Company and the Trustee may amend or supplement this Indenture or
the Securities without notice to or consent of any Securityholder: 



        (a)   to
comply with Article V or Section 10.12; 


        (b)   to
cure any ambiguity, omission, defect or inconsistency; 


        (c)   to
make provisions with respect to the conversion right of the Holders pursuant to the requirements of Section 10.12 and Section 10.01; 



        (d)   to
evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Securities; 


        (e)   to
reduce the Conversion Price; 


        (f)    to
make any changes that would provide the holders of Securities with any additional rights or benefits; 


        (g)   to
make any change that does not adversely affect the rights of any Holder; or 


        (h)   to
comply with the provisions of the TIA, or with any requirement of the SEC arising as a result of the qualification of this Indenture under the TIA. 




        SECTION
9.02.    With Consent of Holders.    The Company and the Trustee may amend or supplement this Indenture or the
Securities without notice to any Securityholder but with the written consent of the Holders of a majority in aggregate Principal Amount of the Securities then outstanding. The Holders of a majority in
aggregate Principal Amount of the Securities then outstanding may waive compliance by the Company with restrictive provisions of this Indenture other than as set forth in this Section 9.02
below, and waive any past Default under this Indenture and its consequences, except a Default in the payment of the principal of or interest on any Security or in respect of a provision which under
this Indenture cannot be modified or amended without the consent of the Holder of each outstanding Security affected. 


        Subject
to Section 9.04, without the written consent of each Securityholder affected, however, an amendment, supplement or waiver, including a waiver pursuant to
Section 6.04, may not: 



        (a)   change
the Stated Maturity of the principal of, or any payment date of any installment of interest (including contingent interest, if any) or Liquidated Damages, if any,
on, any Security; 


        (b)   reduce
the principal amount of, or the rate of interest (including contingent interest, if any) or Liquidated Damages, if any, on, any Security, whether upon
acceleration, redemption or otherwise, or alter the manner of calculation of interest or Liquidated Damages, if any, or the rate of accrual thereof on any Security; 



        (c)   change
the currency for payment of principal of, or interest (including contingent interest, if any) or Liquidated Damages, if any, on any Security; 


        (d)   impair
the right to institute suit for the enforcement of any payment of principal of, or interest (including contingent interest, if any) or Liquidated Damages, if any,
on, any Security when due; 


        (e)   adversely
affect the conversion rights provided in Article X; 


        (f)    modify
Article XI in a manner adverse to the rights of the Holders of the Securities; 



        (g)   modify
the provisions of this Indenture requiring the Company to make an offer to repurchase Securities upon a Change in Control or to repurchase the Securities at the
option of 



35







 




the
Holders pursuant to Section 3.08 in any case in a manner adverse to the Holders of the Securities; 


        (h)   reduce
the percentage of principal amount of the outstanding Securities necessary to modify or amend this Indenture or to consent to any waiver provided for in this
Indenture; 


        (i)    waive
a Default in the payment of the principal amount of, or interest (including contingent interest, if any) or Liquidated Damages, if any, on, any Security (except as
provided in Section 6.02); or 


        (j)    make
any changes in Section 6.04, Section 6.07 or this Section 9.02. 




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


        After
an amendment under this Section 9.02 becomes effective, the Company shall mail to each Holder a notice briefly describing the amendment. Failure to mail the notice or a
defect in the notice shall not effect the validity of the amendment. 


        SECTION
9.03.    Compliance with Trust Indenture Act.    Every supplemental indenture executed pursuant to this
Article IX shall comply with the TIA. 


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


        SECTION
9.05.    Notation on or Exchange of Securities.    Securities authenticated and delivered after the execution
of any supplemental indenture pursuant to this Article IX may, and shall if required by the Trustee, bear a notation in form approved by the Trustee as to any matter provided for in such
supplemental indenture. If the Company shall so determine, new Securities so modified as to conform, in the opinion of the Trustee and the Board of Directors of the Company, to any such supplemental
indenture may be prepared and executed by the Company and authenticated and delivered by the Trustee in exchange for outstanding Securities. 


        SECTION
9.06.    Trustee to Sign Supplemental Indentures.    The Trustee shall sign any supplemental indenture
authorized pursuant to this Article IX if the amendment contained therein does not adversely affect the rights, duties, liabilities or immunities of the Trustee. If it does, the Trustee may,
but need not, sign such supplemental indenture. In signing such supplemental indenture the Trustee shall receive, and (subject to the provisions of Section 7.01) shall be fully protected in
relying upon, an Officers' Certificate and an Opinion of Counsel stating that such amendment is authorized or permitted by this Indenture. 


        SECTION
9.07.    Effect of Supplemental Indentures.    Upon the execution of any supplemental indenture under this
Article IX, 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. 


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ARTICLE X  


 CONVERSIONS  


        SECTION
10.01.    Conversion Privilege.    Subject to the provisions of this Article X, a Holder of a Security
may convert such Security into Common Stock (the shares of Common Stock issuable upon such conversion, the "Conversion Shares"), at the Conversion Price
then in effect, together with those rights, warrants or options specified in Section 10.06 hereof, to the extent applicable, if any of the following conditions is satisfied: 



        (a)   during
any calendar quarter (the "Quarter") commencing after June 30, 2004, if the Closing Price (as defined
hereinafter) per share of Common Stock for at least 20 Trading Days in the period of 30 consecutive Trading Days ending on the last Trading Day of the Quarter preceding the Quarter in which the
conversion of such Security occurs is more than 120% of the Conversion Price on such thirtieth Trading Day; 


        (b)   the
Security has been called for redemption by the Company pursuant to Section 3.01; 


        (c)   the
conversion of such Security occurs during the five Trading Day period immediately following a period of nine consecutive Trading Days in which the Security Trading
Price (as determined following a request by a Holder of the Securities in accordance with the procedures set forth below in this Section 10.01) for each Trading Day in such period was less than
95% of the product of the Closing Price per share of Common Stock on such Trading Day multiplied by the number of shares of Common Stock issuable (assuming satisfaction of conditions to conversion)
upon conversion of $1,000 in principal amount of the Securities (the condition specified in this clause (e) being the "95% Trading Condition"); 


        (d)   (i) an
issuance of rights, warrants or options referred to in Section 10.06(b) occurs or (ii) a distribution referred to in Section 10.06(c)
occurs where the fair market value of such distribution per share of Common Stock (as determined by the Board of Directors of the Company, which determination shall be conclusive evidence of such fair
market value) exceeds 5% of the Closing Price per share of Common Stock on the Trading Day immediately preceding the date of declaration of such distribution; or 


        (e)   (x) the
Company is party to a consolidation, merger, share exchange, sale of all or substantially all of its assets or other similar transaction pursuant to which
the Common Stock is subject to conversion into shares of stock, other securities or property (including cash) pursuant to Section 10.12 and (y) the conversion of such Security occurs at
any time from and after the date that is 15 days prior to the date of the anticipated effective time of such transaction until and including the date that is 15 days after the actual
effective date of such transaction. 




        In
connection with the foregoing clause (a), at the end of each Quarter the Conversion Agent shall, on the Company's behalf, determine whether the Securities are convertible in
the subsequent Quarter pursuant to such clause (a), and promptly notify the Holders if the Securities are convertible. 


        In
the case of the foregoing clauses (d)(i) and (ii), the Company must notify the Holders at least 20 days prior to the ex-dividend date for such issuance or
distribution. Once the Company has given such notice, Holders may surrender their Securities for conversion at any time thereafter until the earlier of the close of business on the Business Day prior
to the ex-dividend date or the Company's announcement that such issuance or distribution will not take place. This provision shall not apply if the Holder of a Security otherwise
participates in the distribution without conversion. 


        The
"Ex-Dividend Date" for any such issuance or distribution means the date immediately prior to the commencement of
"ex-dividend" trading for such issuance or distribution on the New York Stock Exchange or such other national securities exchange or The NASDAQ Stock Market or similar system of automated
dissemination of quotations of securities prices on which the Common Stock is then listed or quoted. 



        The
number of shares of Common Stock issuable upon conversion of a Security shall be determined by dividing the principal amount of the Security or portion thereof surrendered for
conversion by the Conversion Price in effect on the Conversion Date. The initial Conversion Price is set forth in paragraph 8 of the Securities and is subject to adjustment as provided in this
Article X. 


37









   
        A Holder may convert a portion of a Security equal to $1,000 or any integral multiple thereof. Provisions of this Indenture that apply to conversion of all of a Security also apply to
conversion of a portion of a Security. 


        If
a Security is called for redemption pursuant to Article III, the right to convert such Security shall terminate at the close of business on the second Business Day before the
Redemption Date for such Security (unless the Company shall default in making the redemption payment then due, in which case the conversion right shall terminate on the date such Default is cured and
such Security is redeemed). A Security in respect of which a Holder has delivered a Purchase Notice pursuant to Section 3.08 or a Change in Control Purchase Notice pursuant to
Section 3.09 exercising the option of such Holder to require the Company to repurchase such Security may be converted only if such Purchase Notice or Change in Control Purchase Notice, as the
case may be, is withdrawn by a written notice of withdrawal delivered to the Paying Agent prior to the close of business on the Business Day prior to the Purchase Date or prior to the close of
business on the Change in Control Purchase Date, as the case may be, in accordance with Section 3.10. 



        A
Holder of Securities is not entitled to any rights of a holder of Common Stock until such Holder has converted its Securities into Common Stock and, upon such conversion, only to the
extent such Securities are deemed to have been converted into Common Stock pursuant to this Article X. 


        The
"Security Trading Price" per $1,000 in Principal Amount of Securities on any date of determination means the average of the secondary
market bid quotations per $1,000 in principal amount of Securities obtained by the Conversion Agent for $5,000,000 in principal amount of Securities at approximately 3:30 p.m., New York City
time, on such determination date from three independent nationally recognized securities dealers selected by the Company; provided that if at least three such bids cannot reasonably be obtained by the
Conversion Agent, but two such bids are obtained, then the average of the two bids shall be used, and if only one such bid can reasonably be obtained by the Conversion Agent, such one bid shall be
used. If the Conversion Agent cannot reasonably obtain at least one bid for $5,000,000 in principal amount of Securities from a nationally recognized securities dealer or, in the reasonable judgment
of the Company, the bid quotations are not indicative of the secondary market value of the Securities, then the Security Trading Price will be determined in good faith by the calculation agent (which
shall initially be the Trustee unless the Trustee shall have appointed a calculation agent, which may be any investment bank with a national or international reputation with experience in such
matters, including an Initial Purchaser or its successors) taking into account in such determination such factors as it, in its sole discretion after consultation with the Company, deems appropriate.
Other than in connection with a determination of whether contingent interest shall be payable, the Conversion Agent shall have no obligation to determine the Security Trading Price unless the Company
has requested such determination; and the Company shall have no obligation to make such request unless a Holder of the Securities provides the Company with reasonable evidence that the Security
Trading Price would be less than 95% of the product of the Closing Price per share of the
Common Stock and the number of shares of Common Stock issuable upon conversion of $1,000 in principal amount of Securities (assuming satisfaction of conditions to such conversion); at which time the
Company shall instruct the Conversion Agent to determine the Security Trading Price beginning on the next Trading Day and on each successive Trading Day until the Security Trading Price is greater
than or equal to 95% of the product of the Closing Price per share of Common Stock and the number of shares of Common Stock issuable upon conversion of $1,000 in principal amount of Securities
(assuming satisfaction of conditions to such conversion). 


        SECTION
10.02.    Conversion Procedure.    To convert a Security, a Holder must satisfy the requirements in
paragraph 8 of the Securities and (i) complete and manually sign the conversion notice on the back of the Security and deliver such notice to the Conversion Agent, (ii) surrender
the Security to the Conversion Agent, (iii) furnish appropriate endorsements and transfer documents if required by the Registrar or the Conversion Agent, (iv) pay any transfer or other
tax, if required by Section 10.04 


38







 



and
(v) if the Security is held in book-entry form, complete and deliver to the Depositary appropriate instructions pursuant to the Depositary's book-entry conversion
programs. The date on which the Holder satisfies all of the foregoing requirements is the "Conversion Date". As soon as practicable after the Conversion
Date, the Company shall deliver to the Holder through the Conversion Agent either (i) a certificate for or (ii) a book-entry notation of the number of whole shares of Common
Stock issuable upon the conversion and cash in lieu of any fractional shares pursuant to Section 10.05; provided, however, that in the event of a Principal Value Conversion referred to below in
this Section 10.02, the Company shall deliver to the Holder through the Conversion Agent such cash and/or Common Stock as shall be specified in the Principal Value Conversion Notice pertaining
to such Principal Value Conversion. 


        The
person in whose name the certificate is registered shall be deemed to be a stockholder of record on the Conversion Date; provided, however, that no surrender of a Security 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; provided, further, that such conversion shall be at
the Conversion Price in effect on the date that such Security shall have been surrendered for conversion, as if the stock transfer books of the Company had not been closed. Upon conversion of a
Security, such person shall no longer be a Holder of such Security. 


        No
payment or adjustment will be made for accrued interest (including contingent interest, if any), or Liquidated Damages, if any, on a converted Security or for dividends or
distributions on shares of Common Stock issued upon conversion of a Security (provided that the shares of Common Stock received upon conversion of Securities shall continue to accrue Liquidated
Damages, as applicable, in accordance with the Registration Rights Agreement and shall be entitled to receive, at the next interest payment date, any accrued and unpaid Liquidated Damages with respect
to the converted Securities), but if any Holder surrenders a Security for conversion between the record date for the payment of an
installment of interest and the next interest payment date, then, notwithstanding such conversion, the interest (including contingent interest, if any) or Liquidated Damages, if any, payable on such
interest payment date shall be paid to the Holder of such Security on such record date. In such event, such Security, when surrendered for conversion, must be accompanied by delivery of a check
payable to the Conversion Agent in an amount equal to the interest (including contingent interest, if any) or Liquidated Damages, if any, payable on such interest payment date on the portion so
converted. If such payment does not accompany such Security, the Security shall not be converted; provided, however, that no such check shall be required if such Security has been called for
redemption on a Redemption Date within the period between and including such record date and such interest payment date, or if such Security is surrendered for conversion on the interest payment date.
If the Company defaults in the payment of interest (including contingent interest, if any) or Liquidated Damages, if any, payable on the interest payment date, the Conversion Agent shall repay such
funds to the Holder. 


        If
a Holder converts more than one Security at the same time, the number of shares of Common Stock issuable upon the conversion shall be based on the aggregate principal amount of
Securities converted. 



        Upon
surrender of a Security that is converted in part, the Company shall execute, and the Trustee shall authenticate and deliver to the Holder, a new Security equal in principal amount
to the unconverted portion of the Security surrendered. 


        If
on the date of conversion of a Security pursuant to the 95% Trading Condition the Closing Price per share of Common Stock is greater than the Conversion Price, the Company shall pay
to the Holder of such Security, in lieu of issuance of Conversion Shares based on the Conversion Price, cash in an 


39







 



amount
equal to the principal amount of the Security surrendered for conversion as of such Conversion Date (a "Principal Value Conversion"). The Company
shall notify the surrendering Holder of any Security whose conversion is a Principal Value Conversion and the Trustee (such notice being a "Principal Value Conversion
Notice") of such Principal Value Conversion by the second Trading Day following the Conversion Date for such conversion that the Company shall pay to such Holder the principal
amount of such Security in cash. The Company shall pay the principal amount to be paid in cash in a Principal Value Conversion on the third Trading Day after the Conversion Date for such conversion. 



        SECTION
10.03.    Adjustments Below Par Value.    Before taking any action which would cause an adjustment decreasing
the Conversion Price so that the shares of Common Stock issuable upon conversion of the Securities would be issued for less than the par value of such Common Stock, the Company will take all corporate
action which may be necessary in order that the Company may validly and legally issue fully paid and nonassessable shares of such Common Stock at such adjusted Conversion Price. 


        SECTION
10.04.    Taxes on Conversion.    If a Holder converts a Security, the Company shall pay any documentary,
stamp or similar issue or transfer tax due on the issue of shares of Common Stock upon such conversion. However, the Holder shall pay any such tax which is due because the Holder requests the shares
to be issued in a name other than the Holder's name. The Conversion Agent may refuse to deliver the certificates representing the Common Stock being issued in a name other than the Holder's name until
the Conversion Agent 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. 


        SECTION
10.05.    Company to Provide Stock.    



        The
Company shall, prior to issuance of any Securities hereunder, and from time to time as may be necessary, reserve, out of its authorized but unissued Common Stock a sufficient number
of shares of Common Stock to permit the conversion of all outstanding Securities for shares of Common Stock. The shares of Common Stock or other securities issued upon conversion of Securities bearing
a Legend as provided in Section 2.06(f) shall bear a legend substantially in the following form: 



"THIS
SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND THIS SECURITY
MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS
SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. 


THE
HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) TO A PERSON WHOM THE SELLER
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) PURSUANT TO AN EXEMPTION
FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR (III) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES
(I) THROUGH (III) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, 



40







 




NOTIFY
ANY PURCHASER OF THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE." 




        No
fractional shares of Common Stock shall be issued upon conversion of Securities. If more than one Security shall be surrendered for conversion at one time by the same holder, the
number of full shares which shall be issuable upon conversion shall be computed on the basis of the aggregate principal amount of the Securities (or specified portions thereof to the extent permitted
hereby) so surrendered. If any fractional share of Common Stock would be issuable upon the conversion of any Security or Securities, the Company shall make an adjustment thereof in cash at the current
market value thereof. For these purposes, the current market value of a share of Common Stock shall be the Closing Price per share of Common Stock on the first Business Day immediately preceding the
day on which the Securities (or specified portions thereof) are deemed to have been converted. 


        The
Company covenants that all shares of Common Stock delivered upon conversion of the Securities shall be newly issued shares or treasury shares, shall be duly authorized, validly
issued, fully paid and non-assessable and shall be free from preemptive rights and free of any lien or adverse claim. 


        The
Company will endeavor promptly to comply with all federal and state securities laws regulating the offer and delivery of shares of Common Stock upon conversion of Securities, if any,
and will list or cause to have quoted such shares of Common Stock on each national securities exchange or in the over-the-counter market or such other market on which the
Common Stock is then listed or quoted. 


        SECTION
10.06.    Adjustment of Conversion Price.    The conversion price (the "Conversion
Price") shall be that price set forth in paragraph 8 of the form of Security attached hereto as Exhibit A and shall be adjusted from time to time by the Company
as follows: 



        (a)   In
case the Company shall (i) pay a dividend or other distribution in shares of Common Stock or other Capital Stock to all or substantially all holders of Common
Stock, (ii) subdivide its outstanding Common Stock into a greater number of shares, (iii) combine its outstanding Common Stock into a smaller number of shares or (iv) reclassify
its outstanding Common Stock, the Conversion Price in effect immediately prior thereto shall be adjusted so that the Holder of any Security thereafter surrendered for conversion shall be entitled to
receive the number of shares of Capital Stock which it would have owned or have been entitled to receive had such Security been converted immediately prior to the happening of such event. An
adjustment made pursuant to this subsection (a) shall become effective immediately after the record date in the case of a dividend or distribution and shall become effective immediately after
the effective date in the case of subdivision, combination or reclassification. 



        (b)   In
case the Company shall issue to all holders of its Common Stock, rights, warrants or options entitling such holders (for a period commencing no earlier than the
record date described below and expiring not more than 60 days after such record date) to subscribe for or purchase shares of Common Stock (or securities convertible into Common Stock) at a
price per share less than the current market price per share of Common Stock (as determined in accordance with subsection (g) below) at the record date for the determination of stockholders
entitled to receive such rights, warrants or options, the Conversion Price in effect immediately prior thereto shall be adjusted so that the Conversion Price shall equal the price determined by
multiplying the Conversion Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the number of shares of Common Stock outstanding on such record date,
plus the number of shares which the aggregate subscription or purchase price for the total number of shares of Common Stock offered by the rights, warrants or options so issued (or the aggregate
conversion price of the convertible securities offered by such rights, warrants or options) would purchase at such current market price, and the denominator of which shall be the number of shares of
Common Stock outstanding on such record date plus the number of additional shares of 



41







 




Common
Stock offered by such rights, warrants or options (or into which the convertible securities so offered by such rights, warrants or options are convertible). Such adjustment shall be made
successively whenever any such rights, warrants or options are issued, and shall become effective immediately after such record date. If at the end of the period during which such rights, warrants or
options are exercisable not all rights, warrants or options shall have been exercised, the adjusted Conversion Price shall be immediately readjusted to what it would have been upon application of the
foregoing adjustment substituting the number of additional shares of Common Stock actually issued (or the number of shares of Common Stock issuable upon conversion of convertible securities actually
issued) for the total number of shares of Common Stock offered (or the convertible securities offered). 



        (c)   In
case the Company shall distribute to all holders of its Common Stock any shares of Capital Stock of the Company (other than Common Stock) or evidences of its
indebtedness, cash, other securities or other assets, or shall distribute to all holders of its Common Stock, rights, warrants or options to subscribe for or purchase any of its securities (excluding:
(i) rights, options, warrants and other securities referred to in subsections (b) above or (d), (e) or (h) below; and (ii) those dividends, distributions,
subdivisions and combinations referred to in subsection (a) above); then in each such case the Conversion Price shall be adjusted so that the same shall equal the price determined by
multiplying the Conversion Price in effect immediately prior to the date of such distribution or purchase by a fraction, the numerator of which shall be the current market price per share (as defined
in subsection (g) below) of the Common Stock on the record date mentioned below less the fair market value on such record date (as determined by the Board of Directors of the Company, whose
determination shall be conclusive evidence of such fair market value) of the portion of the Capital Stock or evidences of indebtedness, securities or assets so distributed or of such rights, warrants
or options, in each case as applicable to one share of Common Stock, and the denominator of which shall be the current market price per share (as defined in subsection (g) below) of the Common
Stock on such record date. Such adjustment shall become effective immediately after the record date for the determination of stockholders entitled to receive such distribution. 



        (d)   In
the event the Company pays a dividend or makes a distribution to all holders of its Common Stock consisting of publicly-traded Capital Stock of any class or series,
or similar equity interests, of or
relating to a Subsidiary or other business unit of the Company, the Conversion Price shall be adjusted, if at all, in accordance with the formula: 



	    	 	CP' =	 	CP

	 	 	 	 	(1+	 	F
	 	)
	 	 	 	 	 	 	M	 	 







where:



CP' =
the adjusted Conversion Price 


CP =
the current Conversion Price 


M =
the average of the Closing Prices of the Common Stock for the 10 Trading Days (as defined below) commencing on and including the fifth Trading Day after the date on which
"ex-dividend trading" commences for such dividend or distribution on the New York Stock Exchange or such other national exchange or market which such securities are then listed or quoted. 



F =
the average of the Closing Prices of the securities distributed in respect of each share of Common Stock for which this subsection (d) applies for the 10 Trading Days commencing on
and including the fifth Trading Day after the date on which "ex-dividend 





42







 






trading"
commences for such dividend or distribution on the New York Stock Exchange or such other national exchange or market which such securities are then listed or quoted. 





        (e)   In
case the Company shall declare a cash dividend or distribution to all the holders of Common Stock, the Conversion Price shall be decreased so that the Conversion
Price shall equal the price determined by multiplying the Conversion Price in effect immediately prior to the record date for such dividend or distribution by a fraction, 



          (i)  the
numerator of which shall be the average Closing Price of the Company's Common Stock for the three consecutive Trading Days ending on the date immediately preceding
the record date for such dividend or distribution (the "Pre-Dividend Sale Price"), minus the aggregate of the full amount of such cash dividend or distribution applicable to one share of
Common Stock, and 


         (ii)  the
denominator of which shall be the Pre-Dividend Sale Price; 




such
adjustment to become effective immediately after the record date for such dividend or distribution; provided that no adjustment to the Conversion Price or the ability of a Holder of a Security to
convert will be made pursuant to this subsection (e) if the Company provides that Holders of Securities will participate in such cash dividend or distribution on an as-converted
basis without conversion. 


        (f)    In
case the Company or any of its Subsidiaries shall repurchase (including by way of tender or exchange offer, other than an odd lot tender offer) shares of Common
Stock, and the fair market value of the sum of (i) the aggregate consideration paid for such Common Stock, (ii) the aggregate fair market value of cash dividends and distributions paid
within the twelve (12) months preceding the date of purchase of such shares of Common Stock in respect of which no adjustment pursuant to this Section 10.06 previously has been made, and
(iii) the aggregate fair market value of any amounts previously paid for the repurchase of Common Stock of a type described in this subsection (f) within the twelve (12) months
preceding the date of purchase of such shares of Common Stock in respect of which no adjustment pursuant to this Section 10.06 previously has been made, exceeds 10% of aggregate Market
Capitalization on the date of, and after giving effect to, such repurchase, then the Conversion Price shall be adjusted so that the same shall equal the price determined by multiplying the Conversion
Price in effect immediately prior to the date of such distribution or purchase by a fraction, the numerator of which shall be the current market price per share (as defined in subsection
(g) below) of the Common Stock on the date of such repurchase, less the quotient obtained by dividing the Aggregate Market Premium involved in such repurchase (as defined hereinafter) by the
difference between the number of shares of Common Stock outstanding before such repurchase and the number of shares of Common Stock the subject of such repurchase, and the denominator of which shall
be the current market price per share (as defined in subsection (g) below) of the Common Stock on the date of such repurchase. Such adjustment shall become effective immediately after the date
of such repurchase. For purposes of this subsection (f), the "Aggregate Market Premium" is the excess, if any, of the aggregate repurchase price paid for all such Common Stock over the aggregate
current market value per share (as defined in subsection (g) below) of all such repurchased stock, determined with respect to each share involved in each such repurchase as of the date of
repurchase with respect to such share. 


        (g)   For
the purpose of any computation under subsections (b), (c) and (f) above, the current market price per share of Common Stock on any date shall be deemed
to be the average of the Closing Prices for 20 consecutive Trading Days commencing 30 Trading Days before the record date with respect to any distribution, issuance or other event requiring such
computation. As used herein, the term "Trading Days" with respect to Common Stock means (i) if the Common Stock is 



43







 




listed
or admitted for trading on any national securities exchange, days on which such national securities exchange is open for business or (ii) if the Common Stock is not so listed or admitted
for trading, but is quoted on a system of automated dissemination of quotations of securities prices, days on which trades may be made on such system. 


        (h)   If
the Company has implemented or implements a Stockholder Rights Plan (as defined below), the Company agrees that such Stockholder Rights Plan will provide that upon
any conversion of the Securities by any Holder prior to a Trigger Event (as defined below), the Holders shall receive the rights, warrants or options issued under such plan. Rights, warrants or
options distributed by the Company to all holders of Common Stock entitling the holders thereof to subscribe for or purchase shares of the Company's capital stock (either initially or under certain
circumstances), which rights, warrants or options, until the occurrence of a specified event or events (a "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, 




(a
"Stockholder Rights Plan") shall not be deemed distributed for purposes of this Section 10.06 and no adjustment to the Conversion Price shall be required to be made until the occurrence of
the earliest Trigger Event. In addition, in the event of any Trigger Event with respect thereto, that shall have resulted in an adjustment to the Conversion Price under this Section 10.06,
(1) in the case of any such rights, warrants or options which shall all have been redeemed or repurchased without exercise by any holders thereof, the Conversion Price 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 of Common Stock with respect to such rights, warrants or options (assuming such holder had retained such rights, warrants or options), made to all holders of Common Stock as
of the date of such redemption or repurchase, and (2) in the case of any such rights, warrants or options all of which shall have expired without exercise by any holder thereof, the Conversion
Price shall be readjusted as if such issuance had not occurred. 


In
any case in which this Section 10.06 shall require that an adjustment be made immediately following a record date established for purposes of this Section 10.06, the Company may elect
to defer (but only until five Business Days following the filing by the Company with the Trustee of the certificate described in Section 10.10) issuing to the holder of any Security converted
after such record date the shares of Common Stock and other capital stock of the Company issuable upon such conversion over and above the shares of Common Stock and other capital stock of the Company
issuable upon such conversion only on the basis of the Conversion Price prior to adjustment; and, in lieu of the shares the issuance of which is so deferred, the Company shall issue or cause its
transfer agents to issue due bills or other appropriate evidence of the right to receive such shares. 




        SECTION
10.07.    No Adjustment.    No adjustment in the Conversion Price shall be required unless the adjustment
would require an increase or decrease of at least 1% in the Conversion Price as last adjusted; provided, however, that any adjustments which by reason of this Section 10.07 are not required to
be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Article X shall be made to the nearest cent or to the nearest
one-hundredth of a share, as the case may be. 


        No
adjustment need be made for a transaction referred to in Section 10.06 if Holders are to participate in the transaction on a basis and with notice that the Board of Directors
determines to be fair and appropriate in light of the basis and notice on which holders of Common Stock participate in 


44







 



the
transaction. Such participation by Holders may include participation upon conversion; provided that an adjustment shall be made at such time as the Holders are no longer entitled to participate. 



        No
adjustment need be made for rights to purchase Common Stock or issuances of Common Stock pursuant to a Company plan for reinvestment of dividends or interest. 


        No
adjustment need be made for a change in the par value or a change to no par value of the Common Stock. 


        To
the extent that the Securities become convertible into cash, no adjustment need be made thereafter as to the cash. Interest will not accrue on the cash. 


        SECTION
10.08.    Equivalent Adjustments.    In the event that, as a result of an adjustment made pursuant to
Section 10.06 above, the Holder of any Security thereafter surrendered for conversion shall become entitled to receive any shares of Capital Stock of the Company other than shares of its Common
Stock, thereafter the Conversion Price of such other shares so receivable upon conversion of any Securities
shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to Common Stock contained in this Article X. 


        SECTION
10.09.    Adjustment for Tax Purposes.    The Company shall be entitled to make such reductions in the
Conversion Price, in addition to those required by Section 10.06, as it in its discretion shall determine to be advisable in order that any stock dividends, subdivision of shares, distribution
of rights to purchase stock or securities, or a distribution or securities convertible into or exchangeable for stock hereafter made by the Company to its stockholders shall not be taxable. 


        SECTION
10.10.    Notice of Adjustment.    Whenever the Conversion Price is adjusted, or Securityholders become
entitled to other securities or assets, the Company shall promptly mail to Securityholders a notice of the adjustment and file with the Trustee an Officers' Certificate briefly stating the facts
requiring the adjustment and the manner of computing it. The certificate shall be conclusive evidence of the correctness of such adjustment and the Trustee may conclusively assume that, unless and
until such certificate is received by it, no such adjustment is required. 


        SECTION
10.11.    Notice of Certain Transactions.    In case: 



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


        (b)   the
Company shall authorize the granting to the holders of its Common Stock of rights, warrants or options to subscribe for or purchase any share of any class or any
other rights, warrants or options; 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, merger, or share exchange 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 the Conversion Agent and to be mailed to each Holder of Securities at its address appearing on the list provided for in Section 2.05, as
promptly as possible but in any event at least ten 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, warrants or options, or, if a record is not to be taken, the date as of which the holders of Common Stock of record to be entitled to such dividend, distribution
or rights are to be determined, or (y) the date on which such reclassification, consolidation, merger, share exchange, 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 


45







 

Common
Stock for securities or other property deliverable upon such reclassification, consolidation, merger, share exchange, 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, share exchange, transfer,
dissolution, liquidation or winding-up. 


        SECTION
10.12.    Effect of Reclassification, Consolidation, Merger, Share Exchange or Sale on Conversion
Privilege.    


        If
any of the following shall occur, namely: (i) any reclassification or change of outstanding shares of Common Stock (other than a change in par value, or from par value to no
par value, or from no par value to par value, or as a result of a subdivision or combination); (ii) any consolidation, combination, merger or share exchange to which the Company is a party
(other than a merger in which the Company is the continuing corporation and which does not result in any reclassification of, or change (other than a change in name, or par value, or from par value to
no par value, or from no par value to par value, or as a result of a subdivision or combination) in, outstanding shares of Common Stock); or (iii) any sale or conveyance of all or substantially
all of the assets of the Company, then the Company, or such successor or purchasing corporation, as the case may be, shall, as a condition precedent to such reclassification, change, consolidation,
merger, share exchange, sale or conveyance, execute and deliver to the Trustee a supplemental indenture providing that the Holder of each Security then outstanding shall have the right to convert such
Security into the kind and amount of shares of Capital Stock and other securities and property (including cash) receivable upon such reclassification, change, consolidation, merger, share exchange,
sale or conveyance by a holder of the number of shares of Common Stock deliverable upon conversion of such Security immediately prior to such reclassification, change, consolidation, merger, share
exchange, sale or conveyance. Such supplemental indenture shall provide for adjustments of the Conversion Price which shall be as nearly equivalent as may be practicable to the adjustments of the
Conversion Price provided for in this Article X. If, in the case of any such consolidation, merger, share exchange, sale or conveyance, the stock or other securities and property (including
cash) receivable thereupon by a holder of Common Stock includes shares of Capital Stock or other securities and property of a corporation other than the successor or purchasing corporation, as the
case may be, in such consolidation, merger, share exchange, sale or conveyance, then such supplemental indenture shall also be executed by such other corporation and shall contain such additional
provisions to protect the interests of the Holders of the Securities as the Board of Directors of the Company shall reasonably consider necessary by reason of the foregoing. The provision of this
Section 10.12 shall similarly apply to successive consolidations, mergers, share exchanges, sales or
conveyances. Notwithstanding the foregoing, a distribution by the Company to all or substantially all holders of its Common Stock for which an adjustment to the Conversion Price or provision for
conversion of the Securities may be made pursuant to Section 10.06 shall not be deemed to be a sale or conveyance of all or substantially all of the assets of the Company for purposes of this
Section 10.12. 


        In
the event the Company shall execute a supplemental indenture pursuant to this Section 10.12, the Company shall promptly file with the Trustee an Opinion of Counsel stating that
such supplemental indenture is authorized or permitted by this Indenture and an Officers' Certificate briefly stating the reasons therefor, the kind or amount of shares of stock or securities or
property (including cash) receivable by Holders of the Securities upon the conversion of their Securities after any such reclassification, change, consolidation, merger, share exchange, sale or
conveyance, any adjustment to be made with respect thereto and that all conditions precedent have been complied with. 


        SECTION
10.13.    Trustee's Disclaimer.    


        The
Trustee has no duty to determine when an adjustment under this Article X should be made, how it should be made or what such adjustment should be made, but may accept as
conclusive evidence of the correctness of any such adjustment, and shall be protected in relying upon, the Officers' Certificate with respect thereto which the Company is obligated to file with the
Trustee pursuant to Section 10.10. The Trustee shall not be accountable for and makes no representation as to the validity or value of any securities or assets issued upon conversion of
Securities, and the Trustee shall not be responsible for the Company's failure to comply with any provisions of this Article X. Each Conversion Agent (other than the Company or an Affiliate of
the Company) shall have the same protection under this Section 10.13 as the Trustee. 


46









   
        The Trustee shall not be under any responsibility to determine the correctness of any provisions contained in any supplemental indenture executed pursuant to Section 10.12, but
may accept as conclusive evidence of the correctness thereof, and shall be protected in relying upon, the Officers' Certificate with respect thereto which the Company is obligated to file with the
Trustee pursuant to Section 10.12. 


        SECTION
10.14.    Voluntary Reduction.    


        The
Company from time to time may reduce the Conversion Price by any amount for any period of time if the period is at least 20 Trading Days or such longer period as may be required by
law and if the reduction is irrevocable during the period; provided that in no event may the Conversion Price be less than the par value of a share of Common Stock. 


        SECTION
10.15.    Simultaneous Adjustments.    



        In
the event that this Article X requires adjustments to the Conversion Price under more than one of Sections 10.06(c), (d) and (e), and the record dates for the
distributions giving rise to such adjustments shall occur on the same date, then such adjustments shall be made by applying, first, the provisions of Section 10.06(d) or (e), as applicable,
and, second, the provisions of Section 10.06(c). If more than one event requiring adjustment pursuant to Section 10.06 shall occur before completing the determination of the Conversion
Price for the first event requiring such adjustment, then the Board of Directors (whose determination shall, if made in good faith, be conclusive) shall make such adjustments to the Conversion Price
(and the calculation thereof) after giving effect to all such events as shall preserve for Securityholders the Conversion Price protection provided in Section 10.06. 


ARTICLE XI  


 SUBORDINATION  


        SECTION
11.01.    Terms and Conditions of Subordination.    The Company, for itself and its successors, and each
Holder, by its acceptance of Securities, agree that the payment of the principal of or interest on or any other amounts due on the Securities is subordinated in right of payment, in cash or cash
equivalent, to the extent and in the manner stated in this Article XI, to the prior payment in full when due, by acceleration or otherwise, of all existing and future Senior Indebtedness of the
Company. The Securities shall rank pari passu with, or senior in right of payment to, Indebtedness of the Company (other than Senior Indebtedness) whether outstanding on the date of this Indenture or
hereafter created, incurred, issued or guaranteed by the Company. 


        The
Securities shall be subordinate in right of payment to all existing and future Senior Indebtedness of the Company. The payment of the principal of, interest on or any other amounts
due on the Securities is subordinated in right of payment to the prior payment in full of all existing and future Senior Indebtedness when due, by acceleration or otherwise. No payment on account of
principal of, redemption of, interest on or any other amounts due on the Securities, and no redemption, purchase or other acquisition of the Securities may be made, including a purchase on a Purchase
Date or Change in Control Purchase Date pursuant to Article III hereof, if: 



        (a)   a
default in the payment of any Designated Senior Indebtedness occurs and is continuing (for purposes of this Article XI, "Payment
Default"); or 


        (b)   any
other default on any Designated Senior Indebtedness occurs and is continuing that permits the holders of Designated Senior Indebtedness to accelerate its maturity,
and the Trustee receives a notice of such default (a "Payment Blockage Notice") from the Company or from any holder of Designated Senior Indebtedness or
such holder's representative (a "Nonpayment Default"), but only for the period (the "Payment Blockage
Period") commencing on the date of receipt by the Trustee of the Payment Blockage Notice and ending (unless earlier terminated by 



47







 




notice
given to the Trustee by the holders of such Designated Senior Indebtedness) (a) in the case of a Payment Default, upon the date on which such Payment Default is cured or waived or ceases
to exist, and (b) in the case of a Nonpayment Default, upon the earlier of the date on which such Nonpayment Default is cured or waived or ceases to exist or 179 days after the date on
which the Payment Blockage Notice is received. Upon termination of the Payment Blockage Period, unless the holders of any Designated Senior Indebtedness have accelerated the maturity of such
Designated Senior Indebtedness and such Designated Senior Indebtedness remains unpaid, payments on account of principal of or interest on the Securities (other than, subject to Section 11.02
hereof, amounts due and payable by reason of the acceleration of the maturity of the Securities) and redemptions, purchases or other acquisitions shall be made by or on behalf of the Company. 




        Notwithstanding
the foregoing, only one Payment Blockage Notice with respect to a Nonpayment Default may be given and no new Payment Blockage Period may be commenced for a default unless
at least 365 consecutive days have elapsed since the effectiveness of the immediately prior Payment Blockage Notice and all scheduled payments of the Securities that have come due have been paid in
full in cash. No Nonpayment Default that existed or was continuing on the date of delivery of any Payment Blockage Notice shall be the basis for a subsequent Payment Blockage notice. For the avoidance
of doubt, any Payment Default or Nonpayment Default that occurs after the date of delivery of a Payment Blockage Notice may be the basis for a subsequent Payment Blockage Notice, if such Payment
Default or Nonpayment Default exists or is continuing on the date of delivery of the subsequent Payment Blockage Notice. 



        If
the Trustee or any Holder of Securities receives any payment or distribution of the Company's assets of any kind in contravention of any of the terms hereof, whether in cash, property
or securities, in respect of the Securities before all Senior Indebtedness is paid in full in cash or cash equivalents, then the payment or distribution will be held by the recipient in trust for the
benefit of holders of Senior Indebtedness, and will be immediately paid over or delivered to the holders of Senior Indebtedness or their representative or representatives to the extent necessary to
make payment in full of all Senior Indebtedness remaining unpaid, after giving effect to any concurrent payment or distribution, or provision therefor, to or for the holders of Senior Indebtedness.
Any Holder of Securities will notify the Trustee of receipt of any such payment or distribution. 



        SECTION
11.02.    Distribution on Acceleration of Securities, Dissolution and Reorganization.    



        (a)   If
the Securities are declared due and payable because of the occurrence of an Event of Default, the Company or the Trustee shall give prompt written notice to the
holders of all Senior Indebtedness or to the trustee(s) for such Senior Indebtedness of such acceleration. 


        (b)   Upon
(i) any acceleration of the principal amount due on the Securities because of an Event of Default or (ii) any distribution of assets of the Company
upon any dissolution, winding up, liquidation or reorganization of the Company (whether in bankruptcy, insolvency or receivership proceedings or upon an assignment for the benefit of creditors or any
other dissolution, winding up, liquidation or reorganization of the Company): 



          (i)  the
holders of all Senior Indebtedness shall first be entitled to receive payment in full, in cash or cash equivalents, of the principal thereof, the interest thereon
and any other amounts then due thereon before the Holders are entitled to receive payment on account of the principal of or interest on (including contingent interest, if any) and Liquidated Damages,
if any, or any other amounts due on the Securities; 


         (ii)  any
payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities, to which the Holders or the Trustee would be
entitled except for the provisions of this Article XI, shall be paid by the liquidating trustee or agent or 




48







 





other
person making such a payment or distribution, directly to the holders of Senior Indebtedness (or their representatives(s) or trustee(s) acting on their behalf), ratably according to the
aggregate amounts remaining unpaid on account of the principal of or interest on and other amounts due on the Senior Indebtedness held or represented by each, to the extent necessary to make payment
in full, in cash or cash equivalent, of all Senior Indebtedness remaining unpaid, after giving effect to any concurrent payment or distribution to the holders of such Senior Indebtedness, provided,
however, the Trustee's rights to compensation, reimbursement of expenses and indemnification under Sections 6.10 and 7.07 are not subordinated; 


        (iii)  in
the event that, notwithstanding the foregoing, any payment or distribution of assets of the Company of any kind or character, whether in cash, property or
securities, shall be received by the Trustee or the Holders before all Senior Indebtedness is paid in full, such payment or distribution shall be held in trust for the benefit of, and be paid over to
upon request by a holder of the Senior Indebtedness, the holders of the Senior Indebtedness remaining unpaid (or their representatives) or trustee(s) acting on their behalf, ratably as aforesaid, for
application to the payment of such Senior Indebtedness until all such Senior Indebtedness shall have been paid in full, after giving effect to any concurrent payment or distribution to the holders of
such Senior Indebtedness; and 


        (iv)  to
the extent any payment of Senior Indebtedness (whether by or on behalf of the Company, as proceeds of security or enforcement of any right of setoff or otherwise) is
declared to be fraudulent or preferential or otherwise set aside or required to be paid to any receiver, trustee in bankruptcy, liquidating trustee, agent or other similar person under any bankruptcy,
insolvency, receivership, fraudulent conveyance or similar law, then if such payment is recovered by, or paid over to, such receiver, trustee in bankruptcy, liquidation trustee, agent or other similar
person, the Senior Indebtedness or part thereof originally intended to be satisfied shall be deemed to be reinstated and outstanding as if such payment had not occurred. 





        Subject
to the payment in full, in cash or cash equivalent, of all Senior Indebtedness, the Holders shall be subrogated to the rights of the holders of Senior Indebtedness to receive
payments or distributions of cash, property or securities of the Company applicable to the Senior Indebtedness until the principal of and interest (including contingent interest, if any) and
Liquidated Damages, if any, on the Securities shall be paid in full and, for purposes of such subrogation, no such payments or distributions to the holders of Senior Indebtedness of cash, property or
securities which otherwise would have been payable or distributable to Holders shall, as between the Company, its creditors other than the holders of Senior Indebtedness, and the Holders, be deemed to
be a payment by the Company to or on account of the Senior Indebtedness, it being understood that the provisions of this Article XI are and are intended solely for the purpose of defining the
relative rights of the Holders, on the one hand, and the holders of Senior Indebtedness, on the other hand. 


        Nothing
contained in this Article XI or elsewhere in this Indenture or in the Securities is intended to or shall (i) impair, as between the Company and its creditors other
than the holders of Senior Indebtedness, the obligation of the Company, which is absolute and unconditional, to pay to the Holders the principal of and interest (including contingent interest, if any)
and Liquidated Damages, if any, on the Securities as and when the same shall become due and payable in accordance with the terms of the Securities or (ii) affect the relative rights of the
Holders and creditors of the Company other than holders of Senior Indebtedness or, as between the Company and the Trustee, the obligations of the Company to the Trustee, or (iii) prevent the
Trustee or the Holders from exercising all remedies otherwise permitted by applicable law upon default under this Indenture, subject to the rights, if any, under this Article XI of the holders
of Senior Indebtedness in respect of cash, property and securities of the Company received upon the exercise of any such remedy. 


49







 

        Upon
distribution of assets of the Company referred to in this Article XI, the Trustee and the Holders shall be entitled to rely upon a certificate of the liquidating trustee or
agent or other person making any distribution to the Trustee or to the Holders for the purpose of ascertaining the persons entitled to participate in such distribution, the holders of the Senior
Indebtedness and other Indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this
Article XI. The Trustee, however, shall not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness. Nothing contained in this Article XI or elsewhere in this Indenture
or in any of the Securities shall prevent the good faith application by the Trustee of any moneys which were deposited with it hereunder, prior to its receipt of written notice of facts which would
prohibit such application, for the purpose of the payment of or on account of the principal of or interest (including contingent interest, if any) and Liquidated Damages, if any, on, the Securities
unless, prior to the date on which such application is made by the Trustee, the Trustee shall be charged with notice under Section 11.02(d) hereof of the facts which would prohibit the making
of such application. 



        (c)   The
provisions of this Article XI shall not be applicable to any cash, properties or securities received by the Trustee or by any Holder when received as a holder
of Senior Indebtedness and nothing in the Indenture or this Indenture shall deprive the Trustee or such Holder of any of its rights as such holder. 


        (d)   The
Company shall give prompt written notice to the Trustee of any fact known to the Company which would prohibit the making of any payment of money to or by the Trustee
in respect of the Securities pursuant to the provisions of this Article XI. The Trustee shall be entitled to assume that no such fact exists unless the Company or any holder of Senior
Indebtedness or any trustee therefor has given such notice to the Trustee. Notwithstanding the provisions of this Article XI or any other provisions of this Indenture, the Trustee shall not be
charged with knowledge of the existence of any fact which would prohibit the making of any payment of monies to or by the Trustee in respect of the Securities pursuant to the provisions in this
Article XI, unless, and until three Business Days after, the Trustee shall have received written notice thereof from the Company or any holder or holders of Senior Indebtedness or from any
trustee therefor; and, prior to the receipt of any such written notice, the Trustee shall be entitled in all respects conclusively to assume that no such facts exist; provided that if
on a date not less than three Business Days immediately preceding the date upon which by the terms hereof any such monies may become payable for any purpose (including, without limitation, the
principal of or interest (including contingent interest, if any) and Liquidated Damages, if any, on any Security), the Trustee shall not have received with respect to such monies the notice provided
for in this Section 11.02(d), 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. 




        The
Trustee shall be entitled to rely on the delivery to it of a written notice by a person representing himself to be a holder of Senior Indebtedness (or a trustee on behalf of such
holder) to establish that such notice has been given by a holder of Senior Indebtedness (or a trustee on behalf of any such holder or holders). In the event that the Trustee determines in good faith
that further evidence is required with respect to the right of any person as a holder of Senior Indebtedness to participate in any payment or distribution pursuant to this Article XI, the
Trustee may request such person to furnish evidence to the reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness held by such person, the extent to which such person is
entitled to participate in such payment or distribution and any other facts pertinent to the rights of such person under this Article XI, 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; nor shall the Trustee be 


50







 

charged
with knowledge of the curing or waiving of any default of the character specified in Section 11.01 or that any event or any condition preventing any payment in respect of the Securities
shall have ceased to exist, unless and until the Trustee shall have received an Officers' Certificate to such effect. 



        (e)   The
provisions of this Section 11.02 applicable to the Trustee shall also apply to any Paying Agent for the Company. 



        (f)    Each
Holder of a Security, by its acceptance thereof, authorizes and directs the Trustee on its behalf to take such action as may be necessary or appropriate to
effectuate the subordination provided in this Article XI and appoints the Trustee its attorney-in-fact for any and all such purposes, including, in the event of any
dissolution, winding up or liquidation or reorganization under any applicable bankruptcy law of the Company (whether in bankruptcy, insolvency or receivership proceedings or otherwise), the timely
filing of a claim for the unpaid balance of such Holder's Securities in the form required in such proceedings and the causing of such claim to be approved. If the Trustee does not file a claim
or proof of debt in the form required in such proceedings prior to 30 days before the expiration of the time to file such claims or proofs, then any holder or holders of Senior Indebtedness or
their representative or representatives shall have the right to demand, sue for, collect, receive and receipt for the payments and distributions in respect of the Securities which are required to be
paid or delivered to the holders of Senior Indebtedness as provided in this Article XI and to file and prove all claims therefor and to take all such other action in the name of the holders or
otherwise, as such holders of Senior Indebtedness or representative thereof may determine to be necessary or appropriate for the enforcement of the provisions of this Article XI. 



ARTICLE XII  


 MISCELLANEOUS  


        SECTION
12.01.    Trust Indenture Act Controls.    


        If
any provision of this Indenture limits, qualifies, or conflicts with another provision which is required to be included in this Indenture by the TIA, the required provision shall
control. 


        SECTION
12.02.    Notices.    



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




if
to the Company, to: 


6195
Shiloh Road

Alpharetta, GA 30005

Attention: President

Facsimile No.: (678) 992-1012 


in
either case, with a copy to: 



Hunton &
Williams LLP

Bank of America Plaza

6000 Peachtree Street

Atlanta, GA 30308-2216

Attention: Tinley Anderson, Esq.

Facsimile No.: (404) 888-4190 




51







 





if
to the Trustee, to: 


Deutsche
Bank Trust Company Americas

60 Wall Street

MS NYC 60-2515

New York, New York 10005

Attention: Trust and Securities Services

Facsimile No.: (212) 797-8614 


with
a copy to: 


Bingham
McCutchen LLP

One State Street

Hartford, CT 06103

Attention: James G. Scantling, Esq.

Facsimile No.: (860) 240-2875 





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


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



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


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


        SECTION
12.03.    Communication by Holders with Other Holders.    



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


        SECTION
12.04.    Certificate and Opinion as to Conditions Precedent.    


        Upon
any request or application by the Company to the Trustee to take any action under this Indenture, the Company shall furnish to the Trustee: 



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


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




        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 eligible and qualified 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 


52







 



in
the exercise of reasonable care should know, that the certificate or opinion or representations with respect to the matters upon which his or her certificate or opinion is based are erroneous. Any
such certificate or opinion of counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an officer or officers of the Company stating
the information on which counsel is relying 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
12.05.    Statements Required in Certificate or Opinion.    


        Each
Officers' Certificate or Opinion of Counsel with respect to compliance with a covenant or condition provided for in this Indenture shall include: 



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


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


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


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




        SECTION
12.06.    Separability 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
12.07.    Rules by Trustee, Paying Agent, Conversion Agent and Registrar.    


        The
Trustee may make reasonable rules for action by or a meeting of Securityholders. The Registrar, the Conversion Agent and the Paying Agent may make reasonable rules for their
functions. 


        SECTION
12.08.    Legal Holidays.    



        A
"Legal Holiday" is any day other than a Business Day. If any specified date (including a date for giving notice) is a Legal Holiday, the
action shall be taken on the next succeeding day that is not a Legal Holiday, and, if the action to be taken on such date is a payment in respect of the Securities, no interest (including contingent
interest, if any) and Liquidated Damages, if any, shall accrue for the intervening period. 


        SECTION
12.09.    Governing Law.    



        THIS
INDENTURE AND EACH SECURITY SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW, BUT
OTHERWISE WITHOUT REGARD TO CONFLICT OF LAWS RULES. 


53







 



        SECTION
12.10.    No Recourse Against Others.    



        A
director, officer, employee or stockholder, as such, of the Company shall not have any liability for any obligations of the Company under the Securities or for any claim based on, in
respect of or by reason of such obligations or their creation. By accepting a Security, each Securityholder shall waive and release all such liability. The waiver and release shall be part of the
consideration for the issue of the Securities. 


        SECTION
12.11.    Successors.    


        All
agreements of the Company in this Indenture and the Securities shall bind its successor. All agreements of the Trustee in this Indenture shall bind its successor. 



        SECTION
12.12.    Multiple Originals.    


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


[Remainder
of Page Intentionally Left Blank] 


54







 

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



	 	 	FIRST HORIZON PHARMACEUTICAL CORPORATION
	

 	
 	

By:	
 	

/s/  DARRELL BORNE      
 Name: Darrell Borne

Title: Chief Financial Officer
	

 	
 	

DEUTSCHE BANK TRUST COMPANY AMERICAS
	

 	
 	

By:	
 	

/s/  IRINA GOLOVASHCHUK      
 Name: Irina Golovashchuk

Title: Associate




55








  



EXHIBIT A-1  


 
 

[FORM OF FACE OF GLOBAL SECURITY]    
    


        THIS
SECURITY WAS ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR U.S. FEDERAL INCOME TAX PURPOSES. FOR PURPOSES OF SECTIONS 1273 AND 1275 OF THE INTERNAL REVENUE CODE, THE ISSUE PRICE OF EACH
SECURITY IS $1000 PER $1000 OF PRINCIPAL AMOUNT, THE ISSUE DATE IS MARCH 8, 2004 AND THE COMPARABLE YIELD IS 9.15% PER ANNUM. HOLDERS OF THIS SECURITY MAY OBTAIN INFORMATION REGARDING THE AMOUNT OF
ORIGINAL ISSUE DISCOUNT, YIELD TO MATURITY AND THE PROJECTED PAYMENT SCHEDULE FOR THIS SECURITY BY SUBMITTING A WRITTEN REQUEST FOR SUCH INFORMATION TO: FIRST HORIZON PHARMACEUTICAL CORPORATION, 6195
SHILOH ROAD, ALPHARETTA, GA 30005, ATTN.: CHIEF FINANCIAL OFFICER, SUCH INFORMATION TO BE MADE AVAILABLE, BEGINNING NO LATER THAN 10 DAYS AFTER THE ISSUE DATE, PROMPTLY UPON REQUEST. 


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


        TRANSFERS
OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS TO NOMINEES OF THE DEPOSITORY TRUST COMPANY, OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF
PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN ARTICLE TWO OF THE INDENTURE REFERRED TO ON THE REVERSE HEREOF. 


        THIS
SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND
THIS SECURITY, AND THE COMMON STOCK DELIVERABLE UPON CONVERSION HEREOF MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. 



        THE
HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) TO A PERSON WHOM
THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR (III) PURSUANT TO AN 


A-1-1







 



EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH (III) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND
(B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE. 


        THE
FOREGOING LEGEND MAY BE REMOVED FROM THIS SECURITY ON SATISFACTION OF THE CONDITIONS SPECIFIED IN THE INDENTURE. 


A-1-2







 
 
 

FIRST HORIZON PHARMACEUTICAL CORPORATION    
    


1.75%
Contingent Convertible Senior Subordinated Notes Due 2024 



	No.: A-1	 	CUSIP: 32051K AA 4
	

Issue Date: March 8, 2004	
 	

Principal Amount: $125,000,000





        FIRST
HORIZON PHARMACEUTICAL CORPORATION, a Delaware corporation, promises to pay to Cede & Co. or registered assigns, the Principal Amount as set forth on Schedule I
hereto, on March 8, 2024, subject to the further provisions of this Note set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place. This Security is convertible as specified on the other side of this Security. 



	 	 	Interest Payment Dates:	 	March 8 and September 8, commencing

September 8, 2004
	

 	
 	

Record Dates: February 22 and August 24





	

Dated:	
 	

 	
 	

 
	 	 	FIRST HORIZON PHARMACEUTICAL CORPORATION
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Name:

Title:




 
 

TRUSTEE'S CERTIFICATE OF AUTHENTICATION    
    


Deutsche
Bank Trust Company Americas, as Trustee, certifies that this is one of the Securities referred to in the within-mentioned Indenture. 



	By:	 	 	 	 
	 	 	
 Authorized Signatory	 	 
	

Dated:	
 	

 




A-1-3







 
 
 

[FORM OF REVERSE SIDE OF NOTE]    
    


FIRST HORIZON PHARMACEUTICAL CORPORATION


        1.75%
Contingent Convertible Senior Subordinated Notes Due 2024 


        1.     Interest.



        This
Security shall accrue interest at an initial rate of 1.75% per annum. The Company promises to pay interest on the Securities in cash semiannually on each March 8 and
September 8, commencing September 8, 2004, to Holders of record on the immediately preceding February 22 and August 24, respectively, whether or not such day is a Business
Day. Interest on the Securities will accrue from the most recent date to which interest has been paid, or if no interest has been paid, from March 8, 2004, until the Principal Amount is paid or
duly made available for payment. The Company will pay interest on any overdue Principal Amount at the interest rate borne by the Securities at the time such interest on the overdue Principal Amount
accrues, compounded semiannually, and it shall pay interest on overdue installments of interest and Liquidated Damages, if any (without regard to any applicable grace period), at the same interest
rate compounded semiannually. Interest (including contingent interest, if any) on the Securities will be computed on the basis of a 360-day year comprised of twelve 30-day
months. 


        The
Company shall pay contingent interest to the Holders during any six-month period (a "Contingent Interest Period") from
March 8 to, but excluding, September 8 and from September 8 to, but excluding, March 8, with the initial six-month period commencing March 8, 2007, if
the average Security Trading Price for the five Trading Day period ending on the third Trading Day immediately preceding the first day of the applicable Contingent Interest Period equals $1,200 or
more. The amount of contingent interest payable per $1,000 principal amount of Securities in respect of any Contingent Interest Period shall equal 0.5% per annum. The Company will pay contingent
interest, if any, in the same manner as it will pay interest as described above. 


        2.     Method
of Payment. 


        The
Company will pay interest (including contingent interest, if any) and Liquidated Damages, if any, on this Security (except defaulted interest) to the Person who is the registered
Holder of this Security
at the close of business on February 22 or August 24, as the case may be, next preceding the related interest payment date. Subject to the terms and conditions of the Indenture, the
Company will make payments in respect of the Redemption Price, Purchase Price, Change in Control Purchase Price and the Principal Amount at Stated Maturity, as the case may be, to the Holder who
surrenders a Security to a Paying Agent to collect such payments in respect of the Security. The Company will pay cash amounts in money of the United States that at the time of payment is legal tender
for payment of public and private debts. However, the Company may pay interest (including contingent interest, if any), Liquidated Damages, if any, the Redemption Price, Purchase Price, Change in
Control Purchase Price and the Principal Amount at Stated Maturity, as the case may be, by check or wire payable in such money; provided, however, that a Holder holding Securities with an aggregate
Principal Amount in excess of $1,000,000 will be paid by wire transfer in immediately available funds at the election of such Holder. The Company may mail an interest check to the Holder's registered
address. 


        Notwithstanding
the foregoing, so long as this Security is registered in the name of a Depositary or its nominee, all payments hereon shall be made by wire transfer of immediately
available funds to the account of the Depositary or its nominee. 


        3.     Paying
Agent, Conversion Agent and Registrar. 


        Initially,
Deutsche Bank Trust Company Americas (the "Trustee") will act as Paying Agent, Conversion Agent and Registrar. The Company may
appoint and change any Paying Agent, Conversion Agent or Registrar without notice, other than notice to the Trustee; provided that the Company will 


A-1-4







 



maintain
at least one Paying Agent in the State of New York, City of New York, Borough of Manhattan, which shall initially be an office or agency of the Trustee. The Company or any of its Subsidiaries
or any of their Affiliates may act as Paying Agent, Conversion Agent or Registrar. 


        4.     Indenture;
Ranking. 


        The
Company issued the Securities under an Indenture dated as of March 8, 2004 (the "Indenture"), between the Company and the
Trustee. The terms of the Securities include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as in effect from time to time (the
"TIA"). Capitalized terms used herein and not defined herein have the meanings ascribed thereto in the Indenture. The Securities are subject to all such
terms, and Securityholders are referred to the Indenture and the TIA for a statement of those terms. 



        The
Securities are limited to $150,000,000 aggregate Principal Amount (which shall include the Initial Purchasers' option to purchase up to $25,000,000 of additional Securities) (subject
to Section 2.07 of the
Indenture). The Securities are the Company's unsecured obligations and will be subordinated in right of payment to all of the Company's existing and future Senior Indebtedness and effectively
subordinated to all existing and future Indebtedness and other liabilities of the Subsidiaries. The Securities will rank pari passu with, or senior, in
right of payment to the Company's existing and future Indebtedness (other than Senior Indebtedness). The Indenture does not limit other indebtedness of the Company, secured or unsecured. 



        5.     Redemption
at the Option of the Company. 


        No
sinking fund is provided for the Securities. The Securities are not redeemable prior to March 13, 2007. Beginning on March 13, 2007 and during the periods thereafter to
maturity, the Securities are redeemable as a whole, or from time to time in part, in any integral multiple of $1,000, at any time at the option of the Company at a Redemption Price equal to 100% of
the Principal Amount, together with accrued and unpaid interest (including contingent interest, if any) and Liquidated Damages, if any, thereon, up to but not including the Redemption Date; provided
that, if the Redemption Date is on or after an interest record date but on or prior to the related interest payment date, interest and Liquidated Damages, if any, will be payable to the Holders in
whose names the Securities are registered at the close of business on the relevant record date. 


        6.     Purchase
By the Company at the Option of the Holder. 


        Subject
to the terms and conditions of the Indenture, the Company shall become obligated to purchase, at the option of the Holder, all or any portion of the Securities held by such
Holder, in any integral multiple of $1,000, on March 8, 2009, 2014 and 2019 (each, a "Purchase Date") at a purchase price per Security equal to
100% of the aggregate Principal Amount of the Security (the "Purchase Price"), together with accrued and unpaid interest (including contingent interest,
if any) and Liquidated Damages, if any, thereon, up to but not including the Purchase Date (provided that, if the Purchase Date is on or after an interest record date but on or prior to the related
interest payment date, accrued and unpaid interest (including contingent interest, if any) and Liquidated Damages, if any, will be payable to the Holders in whose names the Securities are registered
at the close of business on the relevant record date) upon delivery of a Purchase Notice containing the information set forth in the Indenture, together with the Securities subject thereto, at any
time from the opening of business on the date that is 20 Business Days prior to such Purchase Date until the close of business on the Business Day prior to such Purchase Date, and upon delivery of the
Securities to the Paying Agent by the Holder as set forth in the Indenture. 


        At
the option of the Holder and subject to the terms and conditions of the Indenture, the Company shall become obligated to purchase the Securities held by such Holder after the
occurrence of a Change in Control of the Company for a Change in Control Purchase Price equal to 100% of the Principal Amount thereof plus accrued and unpaid interest (including contingent interest,
if any) and 


A-1-5







 



Liquidated
Damages, if any, thereon, up to but not including the Change in Control Purchase Date which Change in Control Purchase Price shall be paid in cash. Holders have the right to withdraw any
Purchase Notice or Change in Control Purchase Notice, as the case may be, by delivering to the Paying Agent a written notice of withdrawal in accordance with the provisions of the Indenture. 


        If
cash sufficient to pay the Purchase Price or Change in Control Purchase Price, as the case may be, and accrued and unpaid interest (including contingent interest, if any) and
Liquidated Damages, if any, of all Securities or portions thereof to be purchased as of the Purchase Date or the Change in Control Purchase Date, as the case may be, is deposited with the Paying Agent
on the Business Day following the Purchase Date or the Change in Control Purchase Date, interest (including contingent interest, if any) and Liquidated Damages, if any, cease to accrue on such
Securities (or portions thereof) immediately after such Purchase Date or Change in Control Purchase Date, and the Holder thereof shall have no other rights as such other than the right to receive the
Purchase Price or Change in Control Purchase Price, as the case may be, upon surrender of such Security. 


        7.     Notice
of Redemption. 


        Notice
of redemption pursuant to paragraph 5 of this Security will be mailed at least 20 days but not more than 60 days before the Redemption Date to each Holder of
Securities to be redeemed at the Holder's registered address. If money sufficient to pay the Redemption Price of all Securities (or portions thereof) to be redeemed on the Redemption Date is deposited
with the Paying Agent prior to or on the Redemption Date, immediately after such Redemption Date interest (including contingent interest, if any) and Liquidated Damages, if any, cease to accrue on
such Securities or portions thereof. Securities in denominations larger than $1,000 of Principal Amount may be redeemed in part but only in integral multiples of $1,000 of Principal Amount. 



        8.     Conversion. 


        Subject
to the provisions of Article X of the Indenture, a Holder of a Security may convert such Security into shares of Common Stock of the Company if any of the conditions
specified in paragraphs (a) through (e) of Section 10.01 of the Indenture is satisfied. The initial conversion price is $22.15 per share, subject to adjustment under certain
circumstances as described in Article X of the Indenture (the "Conversion Price"). The number of shares issuable upon conversion of a Security is
determined by dividing the principal amount converted by the Conversion Price in effect on the Conversion Date. In
the event of a conversion of a Security in a Principal Value Conversion, the Company shall deliver cash to the Holder of the Security surrendered for such conversion as provided in
Section 10.02 of the Indenture. Upon conversion, no adjustment for interest (including contingent interest, if any), or dividends will be made. No fractional shares required to be issued upon
conversion; in lieu thereof, an amount will be paid in cash based upon the current market price (as defined in the Indenture) of the Common Stock on the last Trading Day prior to the date of
conversion. 


        To
convert a Security, a Holder must (a) complete and sign the conversion notice set forth below and deliver such notice to the Conversion Agent, (b) surrender the Security
to the Conversion Agent, (c) furnish appropriate endorsements and transfer documents if required by the Registrar or the Conversion Agent, (d) pay any transfer or similar tax, if
required and (e) if the Security is held in book-entry form, complete and deliver to the Depositary appropriate instructions pursuant to the Depositary's book-entry
conversion programs. If a Holder surrenders a Security for conversion between the record date for the payment of an installment of interest and the next interest payment date, the Security must be
accompanied by payment of an amount equal to the interest (including contingent interest, if any) and Liquidated Damages, if any, payable on such interest payment date on the principal amount of the
Security or portion thereof then converted; provided, however, that no such payment shall be required if such Security has been called for redemption on a Redemption Date within the period between and
including such record date and such interest payment date, or if such 


A-1-6







 



Security
is surrendered for conversion on the interest payment date. A Holder may convert a portion of a Security equal to $1,000 or any integral multiple thereof. 


        A
Security in respect of which a Holder has delivered a Purchase Notice or a Change of Control Repurchase Notice exercising the option of such Holder to require the Company to repurchase
such Security as provided in Section 3.08 or Section 3.09, respectively, of the Indenture may be converted only if such notice of exercise is withdrawn as provided above and in
accordance with the terms of the Indenture. 


        9.     Denominations;
Transfer; Exchange. 


        The
Securities are in fully registered form, without coupons, in denominations of $1,000 of Principal Amount and integral multiples of $1,000. A Holder may transfer or exchange
Securities in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required
by law or permitted by the Indenture. The Registrar need not transfer or exchange any Securities selected for redemption (except, in the case of a Security to be redeemed in part, the portion of the
Security not to be redeemed) or any Securities in respect of which a Purchase Notice or a Change in Control Purchase Notice has been given and not withdrawn (except, in the case of a Security to be
purchased in part, the portion of the Security not to be purchased) or any Securities for a period of 15 days before the mailing of a notice of redemption of Securities to be redeemed. 


        10.   Persons
Deemed Owners. 


        The
registered Holder of this Security may be treated as the owner of this Security for all purposes. 


        11.   Unclaimed
Money or Securities. 


        The
Trustee and the Paying Agent shall return to the Company upon written request any money or securities held by them for the payment of any amount with respect to the Securities that
remains unclaimed for two years, subject to applicable unclaimed property law. After return to the Company, Holders entitled to the money or securities must look to the Company, for payment as general
creditors unless an applicable abandoned property law designates another person. 


        12.   Amendment;
Waiver. 


        Subject
to certain exceptions set forth in the Indenture, (i) the Indenture or the Securities may be amended with the written consent of the Holders of at least a majority in
aggregate Principal Amount of the Securities at the time outstanding and (ii) certain Defaults may be waived with the written consent of the Holders of a majority in aggregate Principal Amount
of the Securities at the time outstanding. Subject to certain exceptions set forth in the Indenture, without the consent of any Securityholder, the Company and the Trustee may amend the Indenture or
the Securities so long as such changes, other than those in clause (ii), do not adversely affect the interest of Securityholders (i) to cure any ambiguity, omission, defect or
inconsistency, (ii) to comply with Article V or Section 10.01(e) or Section 10.12 of the Indenture, (iii) to evidence and provide for the acceptance of appointment
under the Indenture by a successor Trustee, or (iv) to comply with any requirement of the SEC in connection with the qualification of the Indenture under the TIA. 


        13.   Defaults
and Remedies. 


        Under
the Indenture, Events of Default include, in summary form, (i) default in the payment of any interest (including contingent interest, if any) or Liquidated Damages, if any,
on any Securities and such default continues for 10 Business Days, whether or not prohibited by the subordination provisions of the Indenture; (ii) default in payment of the Principal Amount,
Redemption Price, Purchase Price or Change in Control Purchase Price, as the case may be, in respect of the Securities when the same 


A-1-7







 



becomes
due and payable, whether or not prohibited by the subordination provisions of the Indenture; (iii) failure by the Company in the performance, or breach, of any of the Company's other
covenants in this Security or the Indenture which are not remedied within 30 days of receipt of notice thereof; (iv) defaults by the Company or a Subsidiary in the payment when due of
Indebtedness in excess of $1,000,000; (v) the Company or a Subsidiary fails to pay when due any final, non-appealable judgment (other than any judgment as to which a reputable
insurance company has accepted full liability) aggregating in excess of $1,000,000, which judgments are not stayed, bonded or discharged within 60 days of their entry; (vi) failure by
the Company to issue Common Stock upon conversion of Securities by a Holder in accordance with the provisions of the Indenture; (vii) failure by the Company to give notice to Holders of their
right to require the Company to repurchase Securities upon a Change in Control or fails to make a payment to purchase Securities tendered following a Change in Control, whether or not prohibited by
the subordination provisions of the Indenture; (viii) if a material portion of the Company's or a Subsidiary's assets, which assets represent a material portion of the assets of the Company and
its Subsidiaries as a whole, is attached, seized or subjected to a write or distress warrant or is levied upon, or come within the possession of any receiver, trustee, custodian or assignee for the
benefit of creditors and the same is not terminated or dismissed within 30 days thereafter; and (ix) certain events of bankruptcy or insolvency. 


        Securityholders
may not enforce the Indenture or the Securities except as provided in the Indenture. The Trustee may refuse to enforce the Indenture or the Securities unless it receives
reasonable indemnity or security. Subject to certain limitations, Holders of a majority in aggregate Principal Amount of the Securities at the time outstanding may direct the Trustee in its exercise
of any trust or power. The Trustee may withhold from Securityholders notice of any continuing Default (except a Default in payment of amounts specified in clause (i) or (ii) above) if it
determines that withholding notice is in their interests. 


        14.   Trustee
Dealings with the Company. 


        Subject
to certain limitations imposed by the TIA, the Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Securities and may
otherwise deal with and collect obligations owed to it by the Company or its Affiliates and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not
Trustee. 


        15.   No
Recourse Against Others. 


        A
director, officer, employee or shareholder, as such, of the Company shall not have any liability for any obligations of the Company under the Securities or the Indenture or for any
claim based on, in respect of or by reason of such obligations or their creation. By accepting a Security, each Securityholder waives and releases all such liability. The waiver and release are part
of the consideration for the issue of the Securities. 


        16.   Authentication.



        This
Security shall not be valid until an authorized signatory of the Trustee manually signs the Trustee's Certificate of Authentication on the other side of this Security. 


        17.   Abbreviations.



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


        18.   Governing
Law. 


A-1-8







 



        THE
INDENTURE AND THIS SECURITY SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW, BUT OTHERWISE WITHOUT REGARD
TO CONFLICT OF LAWS RULES.. 


        The
Company will furnish to any Securityholder upon written request and without charge a copy of the Indenture which has in it the text of this Security in larger type. Requests may be
made to: 



First
Horizon Pharmaceutical Corporation

6195 Shiloh Road

Alpharetta, GA 30005

Attn.: President 



A-1-9







 



	ASSIGNMENT FORM	 	CONVERSION NOTICE
	

To assign this Security, fill in the form below:	
 	

To convert this Security into Common Stock of the Company, check the box o
	

I or we assign and transfer this Security to	
 	

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):
	

(Insert assignee's soc. sec. or tax ID no.)	
 	

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

(Print or type assignee's name, address and zip code) and irrevocably appoint	
 	


	

 	

 	
 	

 (Insert the other person's soc. sec. tax ID no.)
	
	 	 	 
	agent to transfer	 	

	

 	

 	
 	


	

 	

 	
 	


	

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

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

 Your Signature:	
 	

 Date:
	

 	
 	

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

Signature Guaranteed	
 	

 	

 
	

 Participant in a Recognized Signature Guarantee Medallion Program	
 	

 	

 
	

By:	

 	
 	

 	

 
	

 	

 Authorized Signatory	
 	

 	

 




A-1-10







 
 
 

SCHEDULE I    
    
    FIRST HORIZON PHARMACEUTICAL CORPORATION    
    


        1.75% Contingent Convertible Senior Subordinated Notes Due 2024 



	Date	 	Principal Amount	 	Notation





A-1-11








  



EXHIBIT A.  


 
 

[Form of Certificated Security]    
    


        THIS SECURITY WAS ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR U.S. FEDERAL INCOME TAX PURPOSES. FOR PURPOSES OF SECTIONS 1273 AND 1275 OF THE INTERNAL REVENUE CODE,
THE ISSUE PRICE OF EACH SECURITY IS $1000 PER $1000 OF PRINCIPAL AMOUNT, THE ISSUE DATE IS MARCH 8, 2004 AND THE COMPARABLE YIELD IS 9.15% PER ANNUM. HOLDERS OF THIS SECURITY MAY OBTAIN INFORMATION
REGARDING THE AMOUNT OF ORIGINAL ISSUE DISCOUNT, YIELD TO MATURITY AND THE PROJECTED PAYMENT SCHEDULE FOR THIS SECURITY BY SUBMITTING A WRITTEN REQUEST FOR SUCH INFORMATION TO: FIRST HORIZON
PHARMACEUTICAL CORPORATION, 6195 SHILOH ROAD, ALPHARETTA, GA 30005, ATTN.: PRESIDENT, SUCH INFORMATION TO BE MADE AVAILABLE, BEGINNING NO LATER THAN 10 DAYS AFTER THE ISSUE DATE, PROMPTLY UPON
REQUEST. 


        THIS
SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND
THIS SECURITY AND THE COMMON STOCK DELIVERABLE UPON CONVERSION HEREOF MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. 


        THE
HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) TO A PERSON WHOM
THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR (III) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH (III) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND
(B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE. 


        THE
FOREGOING LEGEND MAY BE REMOVED FROM THIS SECURITY ON SATISFACTION OF THE CONDITIONS SPECIFIED IN THE INDENTURE. 


A-2-1







 
 
 

FIRST HORIZON PHARMACEUTICAL CORPORATION    
    


1.75%
Contingent Convertible Senior Subordinated Notes Due 2024 



	No.:	 	CUSIP: 32051K AA 4
	

Issue Date:	
 	

Principal Amount:





        FIRST HORIZON PHARMACEUTICAL CORPORATION, a Delaware corporation, promises to pay

to

                                         
                               or registered assigns, the Principal Amount
of                                         
       ,                        on March 8, 2024, subject to the further
provisions of this Note set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. This Security is convertible as specified
on the other side of this Security. 



	 	 	Interest Payment Dates:	 	March 8, and September 8, commencing

September 8, 2004
	

 	
 	

Record Dates: February 22 and August 24





	

Dated:	
 	

 	
 	

 
	 	 	FIRST HORIZON PHARMACEUTICAL CORPORATION
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Name:

Title:




 
 

TRUSTEE'S CERTIFICATE OF AUTHENTICATION    
    


Deutsche
Bank Trust Company Americas, as Trustee, certifies that this is one of the Securities referred to in the within-mentioned Indenture. 



	By:	 	 	 	 
	 	 	
 Authorized Signatory	 	 
	

Dated:	
 	

 




A-2-2







 
 
 

[FORM OF REVERSE SIDE IS IDENTICAL TO EXHIBIT A-1]    
    


A-2-3








  



EXHIBIT B  


 
 

Transfer Certificate    
    


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



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


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



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


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




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



        o     The
transferee is an Affiliate of the Company. 



DATE:





	 	 	
 Signature(s)




B-1







 

        (If
the registered owner is a corporation, partnership or fiduciary, the title of the Person signing on behalf of such registered owner must be stated.) 



	Signature Guaranteed	 	 
	

 Participant in a Recognized Signature Guarantee Medallion Program	
 	

 
	

By:	
 	

 	
 	

 
	 	 	
 Authorized Signatory	 	 




B-2











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CROSS-REFERENCE TABLE



TABLE OF CONTENTS


[FORM OF FACE OF GLOBAL SECURITY]

FIRST HORIZON PHARMACEUTICAL CORPORATION

TRUSTEE'S CERTIFICATE OF AUTHENTICATION

[FORM OF REVERSE SIDE OF NOTE]

SCHEDULE I FIRST HORIZON PHARMACEUTICAL CORPORATION


[Form of Certificated Security]

FIRST HORIZON PHARMACEUTICAL CORPORATION

TRUSTEE'S CERTIFICATE OF AUTHENTICATION

[FORM OF REVERSE SIDE IS IDENTICAL TO EXHIBIT A-1]


Transfer Certificate