INDENTURE



 Exhibit 10.8 
  

  
 THE PANTRY, INC. 
  
 3.00% SENIOR SUBORDINATED CONVERTIBLE
NOTES DUE 2012 
  

  
 INDENTURE 
  
 DATED AS OF NOVEMBER 22, 2005 
  

  
 WACHOVIA BANK, NATIONAL ASSOCIATION, 
 AS TRUSTEE 
  








 TABLE OF CONTENTS 
  


					
	 	 	 	  	Page


	 ARTICLE 1
	 	DEFINITIONS AND INCORPORATION BY REFERENCE	  	1
	 	 	Section 1.01. Definitions.	  	1
	 	 	Section 1.02. Other Definitions.	  	10
	 	 	Section 1.03. Trust Indenture Act Provisions.	  	11
	 	 	Section 1.04. Rules Of Construction.	  	11
	 ARTICLE 2
	 	THE SECURITIES	  	12
	 	 	Section 2.01. Form And Dating.	  	12
	 	 	Section 2.02. Execution And Authentication.	  	13
	 	 	Section 2.03. Registrar, Paying Agent and Conversion Agent.	  	14
	 	 	Section 2.04. Paying Agent To Hold Money In Trust.	  	15
	 	 	Section 2.05. Lists of Holders of Securities.	  	15
	 	 	Section 2.06. Transfer And Exchange.	  	15
	 	 	Section 2.07. Replacement Securities.	  	16
	 	 	Section 2.08. Outstanding Securities.	  	17
	 	 	Section 2.09. Treasury Securities.	  	17
	 	 	Section 2.10. Temporary Securities.	  	17
	 	 	Section 2.11. Cancellation.	  	17
	 	 	Section 2.12. Legend; Additional Transfer And Exchange Requirements.	  	18
	 	 	Section 2.13. CUSIP Numbers.	  	20
	 	 	Section 2.14. Calculations.	  	20
	 ARTICLE 3
	 	REPURCHASE	  	21
	 	 	Section 3.01. Repurchase Of Securities At Option Of The Holder Upon a Fundamental Change.	  	21
	 	 	Section 3.02. Effect Of Fundamental Change Repurchase Notice.	  	23
	 	 	Section 3.03. Deposit Of Fundamental Change Repurchase Price.	  	23
	 	 	Section 3.04. Repayment To The Company.	  	24
	 	 	Section 3.05. Securities Purchased In Part.	  	24
	 	 	Section 3.06. Compliance With Securities Laws Upon Purchase Of Securities.	  	24
	 	 	Section 3.07. Purchase Of Securities In Open Market.	  	25
	 ARTICLE 4
	 	CONVERSION	  	25
	 	 	Section 4.01. Conversion Privilege And Conversion Rate.	  	25
	 	 	Section 4.02. Conversion Procedure.	  	29
	 	 	Section 4.03. Fractional Shares.	  	30
	 	 	Section 4.04. Taxes On Conversion.	  	30
	 	 	Section 4.05. Company To Provide Stock.	  	30
	 	 	Section 4.06. Adjustment Of Conversion Rate.	  	31
	 	 	Section 4.07. No Adjustment.	  	36
	 	 	Section 4.08. Notice Of Adjustment.	  	36
	 	 	Section 4.09. Notice Of Certain Transactions.	  	36
	 	 	Section 4.10. Effect Of Recapitalization, Reclassification, Consolidation, Merger or Sale.	  	36
	 	 	Section 4.11. Trustee’s Disclaimer.	  	38
	 	 	Section 4.12. Voluntary Increase.	  	38
	 	 	Section 4.13. Payment of Cash in Lieu of Common Stock.	  	39
	 ARTICLE 5
	 	COVENANTS	  	39
	 	 	Section 5.01. Payment Of Securities.	  	39
	 	 	Section 5.02. SEC and Other Reports.	  	40

  

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	 	 	Section 5.03. Compliance Certificates.	  	40
	 	 	Section 5.04. Further Instruments and Acts.	  	41
	 	 	Section 5.05. Maintenance Of Corporate Existence.	  	41
	 	 	Section 5.06. Rule 144A Information Requirement.	  	41
	 	 	Section 5.07. Stay, Extension And Usury Laws.	  	41
	 	 	Section 5.08. Payment Of Additional Interest.	  	41
	 	 	Section 5.09. Maintenance of Office or Agency.	  	42
	 	 	Section 5.10. No Layering of Indebtedness.	  	42
	 	 	Section 5.11. Note Guarantees.	  	42
	 ARTICLE 6
	 	CONSOLIDATION; MERGER; CONVEYANCE; TRANSFER OR LEASE	  	43
	 	 	Section 6.01. Company May Consolidate, Etc., Only On Certain Terms.	  	43
	 	 	Section 6.02. Successor Substituted.	  	43
	 ARTICLE 7
	 	DEFAULT AND REMEDIES	  	44
	 	 	Section 7.01. Events Of Default.	  	44
	 	 	Section 7.02. Acceleration.	  	46
	 	 	Section 7.03. Other Remedies.	  	46
	 	 	Section 7.04. Waiver Of Defaults And Events Of Default.	  	46
	 	 	Section 7.05. Control By Majority.	  	46
	 	 	Section 7.06. Limitations On Suits.	  	47
	 	 	Section 7.07. Rights Of Holders To Receive Payment And To Convert.	  	47
	 	 	Section 7.08. Collection Suit By Trustee.	  	47
	 	 	Section 7.09. Trustee May File Proofs Of Claim.	  	48
	 	 	Section 7.10. Priorities.	  	48
	 	 	Section 7.11. Undertaking For Costs.	  	48
	 ARTICLE 8
	 	TRUSTEE	  	49
	 	 	Section 8.01. Obligations Of Trustee.	  	49
	 	 	Section 8.02. Rights Of Trustee.	  	50
	 	 	Section 8.03. Individual Rights Of Trustee.	  	51
	 	 	Section 8.04. Trustee’s Disclaimer.	  	51
	 	 	Section 8.05. Notice Of Default Or Events Of Default.	  	51
	 	 	Section 8.06. Reports By Trustee To Holders.	  	51
	 	 	Section 8.07. Compensation And Indemnity.	  	51
	 	 	Section 8.08. Replacement Of Trustee.	  	52
	 	 	Section 8.09. Successor Trustee By Merger, Etc.	  	53
	 	 	Section 8.10. Eligibility; Disqualification.	  	53
	 	 	Section 8.11. Preferential Collection Of Claims Against Company.	  	53
	 ARTICLE 9
	 	SATISFACTION AND DISCHARGE OF INDENTURE	  	53
	 	 	Section 9.01. Satisfaction And Discharge Of Indenture.	  	53
	 	 	Section 9.02. Application Of Trust Money.	  	54
	 	 	Section 9.03. Repayment To Company.	  	54
	 	 	Section 9.04. Reinstatement.	  	55
	 ARTICLE 10
	 	AMENDMENTS; SUPPLEMENTS AND WAIVERS	  	55
	 	 	Section 10.01. Without Consent Of Holders.	  	55
	 	 	Section 10.02. With Consent Of Holders.	  	56
	 	 	Section 10.03. Compliance With Trust Indenture Act.	  	57
	 	 	Section 10.04. Revocation And Effect Of Consents.	  	57
	 	 	Section 10.05. Notation On Or Exchange Of Securities.	  	57
	 	 	Section 10.06. Trustee To Sign Amendments, Etc.	  	58
	 	 	Section 10.07. Effect Of Supplemental Indentures.	  	58

  

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	 ARTICLE 11
	 	SUBORDINATION	  	58
	 	 	Section 11.01. Agreement to Subordinate.	  	58
	 	 	Section 11.02. Liquidation; Dissolution; Bankruptcy.	  	58
	 	 	Section 11.03. Default on Designated Senior Debt.	  	59
	 	 	Section 11.04. Notice of Acceleration of Notes.	  	59
	 	 	Section 11.05. When Distribution Must Be Paid Over.	  	59
	 	 	Section 11.06. Notice by Company.	  	60
	 	 	Section 11.07. Subrogation.	  	60
	 	 	Section 11.08. Relative Rights.	  	60
	 	 	Section 11.09. Subordination May Not Be Impaired by Company.	  	61
	 	 	Section 11.10. Distribution or Notice to Representative.	  	61
	 	 	Section 11.11. Rights of Trustee and Paying Agent.	  	61
	 	 	Section 11.12. Authorization to Effect Subordination.	  	61
	 	 	Section 11.13. Amendments.	  	61
	 	 	Section 11.14. No Suspension of Remedies.	  	62
	 ARTICLE 12
	 	NOTE GUARANTEES	  	62
	 	 	Section 12.01. Guarantee.	  	62
	 	 	Section 12.02. Subordination of Note Guarantee.	  	63
	 	 	Section 12.03. Limitation on Guarantor Liability.	  	63
	 	 	Section 12.04. Execution and Delivery of Note Guarantee.	  	63
	 	 	Section 12.05. Exceptions.	  	64
	 ARTICLE 13
	 	MISCELLANEOUS	  	64
	 	 	Section 13.01. Trust Indenture Act Controls.	  	64
	 	 	Section 13.02. Notices.	  	64
	 	 	Section 13.03. Communications By Holders With Other Holders.	  	65
	 	 	Section 13.04. Certificate And Opinion As To Conditions Precedent.	  	65
	 	 	Section 13.05. Record Date For Vote Or Consent Of Holders of Securities.	  	66
	 	 	Section 13.06. Rules By Trustee, Paying Agent, Registrar And Conversion Agent.	  	66
	 	 	Section 13.07. Legal Holidays.	  	66
	 	 	Section 13.08. Governing Law.	  	67
	 	 	Section 13.09. No Adverse Interpretation Of Other Agreements.	  	67
	 	 	Section 13.10. No Recourse Against Others.	  	67
	 	 	Section 13.11. Successors.	  	67
	 	 	Section 13.12. Multiple Counterparts.	  	67
	 	 	Section 13.13. Separability.	  	67
	 	 	Section 13.14. Table Of Contents, Headings, Etc.	  	67
			
	 	 	EXHIBIT A Form of Security	  	A-1
	 	 	EXHIBIT B Form of Supplemental Indenture	  	B-1
	 	 	EXHIBIT C Form of Note Guarantee	  	C-1

  

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 CROSS-REFERENCE TABLE 
  

					
	 TIA
Section

	 	 	  	 Indenture
Section


	 Section
	 	310	  	13.01
	 	 	310(a)(1)	  	8.10
	 	 	(a)(2)	  	8.10
	 	 	(a)(3)	  	N.A.**
	 	 	(a)(4)	  	N.A.
	 	 	(a)(5)	  	8.10
	 	 	(b)	  	8.10
	 	 	(c)	  	N.A.
	 Section
	 	311	  	13.01
	 	 	311(a)	  	8.11
	 	 	(b)	  	8.11
	 	 	(c)	  	N.A.
	 Section
	 	312	  	11.01
	 	 	(a)	  	N.A.
	 	 	(b)	  	13.03
	 	 	(c)	  	13.03
	 Section
	 	313	  	13.01
	 	 	313(a)	  	8.06(a)
	 	 	(b)(1)	  	N.A.
	 	 	(b)(2)	  	8.06(a)
	 	 	(c)	  	8.06(a)
	 	 	(d)	  	N.A.
	 Section
	 	314	  	8.06
	 	 	314(a)	  	N.A.
	 	 	(b)	  	13.01(g)
	 	 	(c)(1)	  	N.A.
	 	 	(c)(2)	  	N.A.
	 	 	(c)(3)	  	N.A.
	 	 	(d)	  	13.01(f)
	 	 	(e)	  	N.A.
	 	 	(f)	  	N.A.
	 Section
	 	315	  	13.01
	 	 	315(a)	  	8.01(b)
	 	 	315(b)	  	8.05
	 	 	315(d)	  	8.01(c)
	 	 	315(d)(2)	  	8.01(c)
	 	 	315(d)(3)	  	8.01(c)
	 	 	315(e)	  	7.11
	 Section
	 	316	  	13.01
	 Section
	 	317	  	13.01
	 Section
	 	318(c)	  	13.01



	*	This Cross-Reference Table shall not, for any purpose, be deemed a part of this Indenture. 


	**	N.A. means Not Applicable. 

  

 (vi) 








 THIS INDENTURE dated as of November 22, 2005 is among The Pantry, Inc., a corporation duly organized
under the laws of the State of Delaware (the “Company”), the Guarantors (as defined herein) and Wachovia Bank, National Association, a national banking association organized and existing under the laws of the United States, as Trustee (the
“Trustee”). 
  
 In consideration of the purchase of the
Securities (as defined herein) by the Holders thereof, the parties hereto agree as follows for the benefit of one another and for the equal and ratable benefit of the Holders of the Company’s 3.00% Senior Subordinated Convertible Notes Due
2012. 
  
 ARTICLE 1 
  
 DEFINITIONS AND INCORPORATION BY REFERENCE 
  
 Section 1.01. Definitions. 
  
 “Additional Interest” has the meaning specified in the
Registration Rights Agreement. All references herein to interest accrued or payable as of any date shall include any Additional Interest accrued or payable as of such date as provided in the Registration Rights Agreement. 
  
 “Affiliate” means, with respect to any specified person, 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 person means the power to direct
the management and policies of such person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the
foregoing. 
  
 “Agent” means any Registrar, Paying Agent
or Conversion Agent. 
  
 “Applicable Procedures” means,
with respect to any transfer or exchange of beneficial ownership interests in a Global Security, the rules and procedures of the Depositary, to the extent applicable to such transfer or exchange. 
  
 “Bankruptcy Law” means Title 11 of the United States Code (or any
successor thereto) or any similar federal or state law for the relief of debtors. 
  
 “Beneficial Ownership” means the definition such term is given in accordance with Rule 13d-3 promulgated by the SEC under the Exchange Act. 
  
 “Board of Directors” means either the board of directors of the Company or any committee of the Board of Directors
authorized to act for it with respect to this Indenture. 
  
 “Business Day” means any weekday that is not a day on which banking institutions in the City of New York are authorized or obligated by law or executive order to close or be closed. 
  
 “Capital Lease Obligation” means, at the time any determination
thereof is to be made, the amount of the liability in respect of a capital lease that would at that time be required to be capitalized on a balance sheet in accordance with GAAP, and the Stated Maturity thereof shall be the date of the last payment
of rent or any other amount due under such lease prior to the first date upon which such lease may be prepaid by the lessee without payment of a penalty. 
  

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 “Capital Stock” means: 
  

	 	(1)	in the case of a corporation, corporate stock; 

  

	 	(2)	in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock;


  

	 	(3)	in the case of a partnership or limited liability company, partnership (whether general or limited) or membership interests; and 

  

	 	(4)	any and all shares, interests, rights to purchase, warrants, options, participations, rights or other equivalents of or interests in (however designated) equity of such Person, and
any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person, but excluding from all of the foregoing any debt securities convertible into
Capital Stock, whether or not such debt securities include any right of participation with Capital Stock. 

  
 “Cash” or “cash” means such coin or currency of the United States as at any time of payment is legal tender for the payment of public
and private debts. 
  
 “Certificated Security” means a
Security that is in substantially the form attached as Exhibit A but that does not include the information or the schedule called for by footnote 1 and 2 thereof. 
  
 “Change of Control” means (i) any “person” or “group” (as such terms are used in Sections
13(d) and 14(d) of the Exchange Act) acquires the Beneficial Ownership, directly or indirectly, through a purchase, merger or other acquisition transaction or series of transactions, of 50% or more of the total voting power the total outstanding
Voting Stock of the Company other than an acquisition by the Company, any of its subsidiaries or any of its employee benefit plans; (ii) the Company consolidates with, or merges with or into, another person or conveys, transfers, leases or
otherwise disposes of all or substantially all of the Company’s assets, to any person, or any person consolidates with or merges with or into the Company, provided that this clause (ii) shall not apply to (1) any transaction
(A) that does not result in any reclassification, exchange, or cancellation of outstanding shares of the Company’s Capital Stock and (B) pursuant to which holders of the Company’s Capital Stock immediately prior to the
transaction have the entitlement to exercise, directly or indirectly, 50% or more of the total voting power of all shares of the Company’s Capital Stock entitled to vote generally in the election of directors of the continuing or surviving
Person immediately after the transaction; or (2) any merger solely for the purpose of changing the Company’s jurisdiction of formation and resulting in a reclassification, conversion or exchange of outstanding shares of Common Stock solely
into shares of common stock of the surviving entity; (iii) the first day on which a majority of the members of the board of directors of the Company are not Continuing Directors; or (iv) the Company approves a plan of liquidation or
dissolution. Notwithstanding anything to the contrary set forth herein, a Change of Control will be deemed not to have occurred if 100% of the consideration for the Company’s Common Stock (excluding cash payments for fractional shares and cash
payments made in respect of dissenters’ appraisal rights) in the transaction or transactions otherwise constituting a Change in Control consists of shares of common stock traded on a U.S. national securities exchange or quoted on the Nasdaq
National Market, or which will be so traded or quoted when issued or exchanged in connection with the transaction or transactions, and as a result of such transaction or transactions the Securities become convertible into such common stock.

  
 “Closing Price” means on any Trading Day, the
reported last sale price per share (or if no last sale price is reported, the average of the bid and ask prices per share or, if more than one in either case, the average of the average bid and the average ask prices per share) on such date reported
by the Nasdaq 
  

 2 








 National Market or, if the Company’s Common Stock (or the applicable security) is not quoted on the Nasdaq National
Market, as reported by the principal national securities exchange on which the Company’s Common Stock (or such other security) is listed, or if no such prices are available, the Closing Price per share shall be the fair value of a share of
Common Stock (or such other security) as reasonably determined by the Board of Directors (which determination shall be conclusive and shall be evidenced by an Officers’ Certificate delivered to the Trustee). 
  
 “Common Stock” means the common stock of the Company, par value
$0.01, as it exists on the date of this Indenture and any shares of any class or classes of Capital Stock of the Company resulting from any reclassification or reclassifications thereof, or, in the event of a merger, consolidation or other similar
transaction involving the Company that is otherwise permitted hereunder in which the Company is not the surviving corporation the common stock, common equity interests, ordinary shares or depositary shares or other certificates representing common
equity interests of such surviving corporation or its direct or indirect parent corporation, and which have no preference in respect of dividends or of amounts payable in the event of any voluntary or involuntary liquidation, dissolution or
winding-up of the Company and which are not subject to redemption by the Company; provided, however, that if at any time there shall be more than one such resulting class, the shares of each such class then so issuable on conversion of Securities
shall be substantially in the proportion which the total number of shares of such class resulting from all such reclassifications bears to the total number of shares of all such classes resulting from all such reclassifications. 
  
 “Company” means the party named as such in the first paragraph of
this Indenture until a successor replaces it pursuant to the applicable provisions of this Indenture, and thereafter “Company” shall mean such successor Company. 
  
 “Continuing Directors” means, as of any date of determination, any member of the board of directors of the Company
who (1) was a member of such board of directors on the date of this Indenture or (2) was nominated for election or elected to such 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. 
  
 “Conversion Price” per share of Common Stock as of any day means the result obtained by dividing (i) $1,000 by (ii) the then applicable Conversion Rate. 
  
 “Conversion Rate” means the rate at which shares of Common Stock shall be delivered upon conversion, which rate
shall be initially 19.9622 shares of Common Stock for each $1,000 principal amount of Securities, as adjusted from time to time pursuant to the provisions of this Indenture. 
  
 “Conversion Reference Period” means: 
  
 (i) for Securities that are converted during the period beginning on the 30th day prior to the Final Maturity Date, the ten
consecutive Trading Days beginning on the third Trading Day following the Final Maturity Date; and 
  
 (ii) in all other instances, the ten consecutive Trading Days beginning on the third Trading Day following the Conversion Date. 
  
 “Conversion Value” means, for each $1,000 principal amount of
Securities, an amount equal to the product of (i) the Conversion Rate in effect on the Conversion Date and (ii) the average of the Closing Price of the Company’s Common Stock for each of the ten consecutive Trading Days of the
Conversion Reference Period; provided that after the consummation of a Change of Control in which the consideration is comprised entirely of cash, the amount in clause (ii) of this definition shall be the cash price per share received by
holders of the Company’s Common Stock in such Change of Control. 
  

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 “Corporate Trust Office” means the office of the Trustee at which at any particular time the
trust created by this Indenture shall be administered, which office at the date of the execution of this Indenture is located at 401 South Tryon Street, 12th Floor, Charlotte, North Carolina, 28288-1179, Attention: Corporate Trust Department, or at
any other time at such other address as the Trustee may designate from time to time by notice to the Holders and the Company. 
  
 “Credit Agreement” means that certain Amended and Restated Credit Agreement, as amended, dated as of March 12, 2004, by and among the
Company and inter alia Wachovia Bank, National Association, as administrative agent, providing for revolving credit and term loan borrowings and letters of credit, including any related notes, Guarantees, collateral documents, instruments and
agreements executed in connection therewith, and, in each case, as amended, restated, modified (in whole or in part, and without limitation as to amount, terms, covenants or other conditions), renewed, extended, refunded, replaced (whether upon or
after termination or otherwise) or refinanced (including by means of sales of debt securities to institutional investors) in whole or in part from time to time whether (in whole or in part) with the same or other lenders. 
  
 “Credit Facilities” means one or more debt facilities (including,
without limitation, the Credit Agreement) or commercial paper facilities or financings, in each case, with banks or other institutional lenders providing for revolving credit loans, term loans, receivables financing (including through the sale of
receivables to such lenders or to special purpose entities formed to borrow from such lenders against such receivables) or letters of credit, in each case, as amended, restated, modified (in whole or in part, and without limitation as to amount,
terms, covenants or other conditions), renewed, extended, refunded, replaced (whether upon or after termination or otherwise) or refinanced in whole or in part from time to time whether (in whole or in part) with the same or other lenders.

  
 “Daily Share Amount” means, for each Trading Day of
the Conversion Reference Period and for each $1,000 principal amount of notes surrendered for conversion, a number of shares (but in no event less than zero) equal to (i) the amount of (a) the Closing Price on such Trading Day multiplied
by the Conversion Rate in effect on the Conversion Date, appropriately adjusted to take into account the occurrence on such Trading Day of any event which would require an anti-dilution adjustment, less (b) $1,000; divided by (ii) the
Closing Price on such Trading Day multiplied by 10. 
  
 “Default” means, when used with respect to the Securities, any event that is or, after notice or passage of time, or both, would be, an Event of Default. 
  
 “Designated Senior Debt” means: 
  

	 	(1)	any Indebtedness outstanding under the Credit Agreement; and 

  

	 	(2)	any other Senior Debt the principal amount of which is $10.0 million or more and that has been designated by the Company as “Designated Senior Debt.”


  
 “Domestic Subsidiary” means any
Subsidiary of the Company that was formed under the laws of the United States or any state of the United States or the District of Columbia. 
  
 “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. 
  

 4 








 “Final Maturity Date” means November 15, 2012. 
  
 “Fundamental Change” means the occurrence of a Change of Control or
a Termination of Trading. 
  
 “Fundamental Change Effective
Date” means the date on which any Fundamental Change becomes effective. 
  
 “Fundamental Change Repurchase Price” of any Security, means 100% of the principal amount of the Security to be purchased plus accrued and unpaid interest, if any, and Additional Interest, if any, to, but
excluding, the Fundamental Change Repurchase Date. 
  
 “GAAP” means generally accepted accounting principles in the United States of America as in effect from time to time, including those set forth in (1) the opinions and pronouncements of the Accounting Principles Board of the
American Institute of Certified Public Accountants, (2) the statements and pronouncements of the Financial Accounting Standards Board, (3) such other statements by such other entity as approved by a significant segment of the accounting
profession and (4) the rules and regulations of the SEC governing the inclusion of financial statements (including pro forma financial statements) in registration statements filed under the Securities Act and periodic reports required to be
filed pursuant to Section 13 of the Exchange Act, including opinions and pronouncements in staff accounting bulletins and similar written statements from the accounting staff of the SEC. 
  
 “Global Security” means a Security in global form that is in
substantially the form attached as Exhibit A and that includes the information and schedule called for in footnote 1 thereof and which is deposited with the Depositary or its custodian and registered in the name of the Depositary or its nominee.

  
 “Guarantee” means a guarantee other than by
endorsement of negotiable instruments for collection in the ordinary course of business, direct or indirect, in any manner including, without limitation, by way of a pledge of assets or through letters of credit or reimbursement agreements in
respect thereof, of all or any part of any Indebtedness (whether arising by virtue of partnership arrangements, or by agreements to keep-well, to purchase assets, goods, securities or services, to take or pay or to maintain financial statement
conditions or otherwise). 
  
 “Guarantors” means each
of: 
  

	 	(1)	the Company’s current Domestic Subsidiaries required to execute Note Guarantees in accordance with the provisions of this Indenture; and 

  

	 	(2)	any other entity that executes a Note Guarantee in accordance with the provisions of this Indenture; 

  
 and their respective successors and assigns, in each case, until the Note Guarantee of such entity has been released in accordance with the
provisions of this Indenture. 
  
 “Hedging Obligations”
means, with respect to any specified Person, the obligations of such Person under: 
  

	 	(1)	interest rate swap agreements (whether from fixed to floating or from floating to fixed), interest rate cap agreements and interest rate collar agreements; 


 

 5 









	 	(2)	other agreements or arrangements designed to manage interest rates or interest rate risk; and 

  

	 	(3)	other agreements or arrangements designed to protect such Person against fluctuations in currency exchange rates or commodity prices. 

  
 “Holder” or “Holder of a Security” means the person in
whose name a Security is registered on the Registrar’s books. 
  
 “Indebtedness” means, with respect to any specified Person, any indebtedness of such Person (excluding accrued expenses and trade payables), without duplication, whether or not contingent: 
  

	 	(1)	in respect of borrowed money; 

  

	 	(2)	evidenced by bonds, notes, debentures or similar instruments or letters of credit (or reimbursement agreements in respect thereof); 

  

	 	(3)	in respect of banker’s acceptances; 

  

	 	(4)	representing Capital Lease Obligations; 

  

	 	(5)	representing the balance deferred and unpaid of the purchase price (other than trade payables incurred in the ordinary course of business) of any property or services due more than
six months after such property is acquired or such services are completed; or 

  

	 	(6)	representing any Hedging Obligations, 

  
 if and to the extent any of the preceding items (other than letters of credit and Hedging Obligations) would appear as a liability upon a balance sheet of the specified
Person prepared in accordance with GAAP. In addition, the term “Indebtedness” includes all Indebtedness of others secured by a Lien on any asset of the specified Person (whether or not such Indebtedness is assumed by the specified Person)
and, to the extent not otherwise included, the Guarantee by the specified Person of any Indebtedness of any other Person, to the extent, as applicable, of the amount of Indebtedness covered by such Guarantee, or the fair market value of the asset or
assets subject to such Lien. 
  
 “Indenture” means this
Indenture as amended or supplemented from time to time pursuant to the terms of this Indenture, including the provisions of the TIA that are automatically deemed to be a part of this Indenture by operation of the TIA. 
  
 “Initial Purchasers” means Merrill Lynch, Pierce, Fenner &
Smith Incorporated and Wachovia Capital Markets, LLC. 
  
 “Interest Payment Date” means May 15 and November 15 of each year, commencing May 15, 2006. 
  
 “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. 
  
 “Lien” means, with respect to any asset,
any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect of such asset, whether or not filed, recorded or otherwise perfected under applicable law, including any conditional sale or other title retention agreement,
any lease in the 
  

 6 








 nature thereof, any option or other agreement to sell or give a security interest in and any filing of or agreement to
give any financing statement under the Uniform Commercial Code (or equivalent statutes) of any jurisdiction. 
  
 “Note Guarantee” means any Guarantee by a Guarantor of the Company’s obligations under the Securities and this Indenture. 
  
 “Obligations” means any principal, interest, penalties, fees,
indemnifications, reimbursements, damages and other liabilities payable under the documentation governing any Indebtedness. 
  
 “Officer” means the Chairman or any Co-Chairman of the Board, any Vice Chairman of the Board, the Chief Executive Officer, the President, any
Vice President, the Chief Financial Officer, the Controller, the Secretary, any Assistant Controller or any Assistant Secretary of the Company. 
  
 “Officers’ Certificate” means a certificate signed on behalf of the Company by one Officer; provided, however, that for purposes of
Sections 4.10 and 5.03, “Officers’ Certificate” means a certificate signed by the principal executive officer, principal financial officer or principal accounting officer of the Company. 
  
 “Opinion of Counsel” means a written opinion from legal counsel
reasonably acceptable to the Trustee. The counsel may be an employee of or counsel to the Company or the Trustee. 
  
 “Permitted Junior Securities” means: 
  

	 	(1)	Capital Stock of the Company or any Guarantor; or 

  

	 	(2)	debt securities that are subordinated to all Senior Debt (and any debt securities issued in exchange for Senior Debt) to substantially the same extent as, or to a greater extent
than, the Securities and the Note Guarantees are subordinated to Senior Debt under this Indenture. 

  
 “Person” means any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization,
limited liability company or government or other entity. The term “Person,” as used in clause (i) of the definition of “Change of Control” herein, includes any syndicate or group that would be deemed to be a
“person” under Section 13(d)(3) of the Exchange Act. 
  
 “Principal” or “principal” of a debt security, including the Securities, means the principal of the security plus, when appropriate, the premium, if any, on the security. 
  
 “Receiver” means any receiver, trustee, assignee, liquidator,
sequestrator or similar official under any Bankruptcy Law. 
  
 “Registration Rights Agreement” means the Registration Rights Agreement, dated as of November 22, 2005, among the Company, the Guarantors and the Initial Purchasers, as amended from time to time in accordance with its terms.

  
 “Regular Record Date” means, with respect to each
Interest Payment Date, the May 1 or November 1, as the case may be, next preceding such Interest Payment Date. 
  
 “Representative” means the indenture trustee or other trustee, a gent or representative for any Senior Debt. 
  

 7 








 “Restricted Global Security” means a Global Security that is a Restricted Security. 

 
 “Restricted Security” means a Security required to bear the
restricted legend set forth in the form of Security annexed as Exhibit A. 
  
 “Rule 144” means Rule 144 under the Securities Act or any successor to such Rule. 
  
 “Rule 144A” means Rule 144A under the Securities Act or any successor to such Rule. 
  
 “SEC” means the Securities and Exchange Commission. 
  
 “Securities” means the up to $150.0 million aggregate principal
amount of 3.00% Senior Subordinated Convertible Notes due 2012, or any of them (each a “Security”), as amended or supplemented from time to time, that are 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. 
  
 “Securities Custodian” means the Trustee, as custodian with respect to the Securities in global form, or any successor thereto. 
  
 “Senior Debt” means: 
  

	 	(1)	all Indebtedness of the Company or any Guarantor outstanding under Credit Facilities, unless the instrument under which such Indebtedness is incurred expressly provides that it is
on a parity with or subordinated in right of payment to the Securities or any Note Guarantee of the Securities and all Hedging Obligations with respect thereto; 

  

	 	(2)	any other Indebtedness of the Company or any Guarantor, unless the instrument under which such Indebtedness is incurred expressly provides that it is on a parity with or
subordinated in right of payment to the Securities or any Note Guarantee of the Securities; and 

  

	 	(3)	all Obligations with respect to the items listed in the preceding clauses (1) and (2). 

  
 Notwithstanding anything to the contrary in the preceding, Senior Debt will not include: 
  

	 	(1)	any liability for federal, state, local or other taxes owed or owing by the Company or any of its Subsidiaries; 

  

	 	(2)	any intercompany Indebtedness of the Company to any of its Subsidiaries; 

  

	 	(3)	any trade payables; or 

  

	 	(4)	the portion of any Indebtedness that is incurred in violation of this Indenture. 

  
 “Significant Subsidiary” means any Subsidiary that would be a “significant subsidiary” as defined in
Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act, as such regulation is in effect on the date of this Indenture. 
  
 “Stated Maturity” means, with respect to any installment of interest or principal on any series of Indebtedness, the date on which such payment
of interest or principal was scheduled to be paid in the 
  

 8 








 original documentation governing such Indebtedness, and shall not include any contingent obligations to repay, redeem or
repurchase any such interest or principal prior to the date originally scheduled for the payment thereof. 
  
 “Stock Price” means the price paid per share of the Company’s Common Stock in connection with a Change of Control as determined pursuant to
Section 4.01(j). 
  
 “Subsidiary” means, with
respect to any specified Person: 
  

	 	(1)	any corporation, association or other business entity of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any
contingency and after giving effect to any voting agreement or stockholders’ agreement that effectively transfers voting power) to vote in the election of directors, managers or trustees of the corporation, association or other business entity
is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person (or a combination thereof); and 

  

	 	(2)	any partnership (a) the sole general partner or the managing general partner of which is such Person or a Subsidiary of such Person or (b) the only general partners of
which are that Person or one or more Subsidiaries of that Person (or any combination thereof). 

  
 “Termination of Trading” means any date on which the Company’s Common Stock (or other common stock into which the Securities are then
convertible) is neither listed for trading on a United States national securities exchange nor approved for trading on an established automated over-the-counter trading market in the United States. 
  
 “TIA” means the Trust Indenture Act of 1939, as amended, and the
rules and regulations thereunder as in effect on the date of this Indenture, except to the extent that the Trust Indenture Act or any amendment thereto expressly provides for application of the Trust Indenture Act as in effect on another date.

  
 “Trading Day” means any day on which the Nasdaq
National Market or, if the Company’s Common Stock is not quoted on the Nasdaq National Market, the principal national securities exchange on which the Company’s Common Stock is listed, is open for trading or, if the common stock is listed
on the New York Stock Exchange, a day on which trades may be made on such market or, if the applicable security is not so listed, admitted for trading or quoted, any Business Day. A Trading Day only includes those days that have a scheduled closing
time of 4:00 p.m. (New York City time) or the then standard closing time for regular trading on the relevant exchange or trading system. 
  
 “Trading Price” of the Securities on any date of determination means the average of the secondary market bid quotations obtained by the Trustee
for $5.0 million principal amount of Securities at approximately 3:30 p.m., New York City time, on such determination date from three nationally recognized securities dealers the Company selects; provided that if three such bids cannot reasonably be
obtained by the Trustee, 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 Trustee, that one bid shall be used. If the Trustee cannot reasonably obtain at least
one bid for $5.0 million principal amount of Securities from a nationally recognized securities dealer, then the Trading Price per $1,000 principal amount of Securities will be deemed to be less than 98% of the product of the Closing Price of our
Common Stock and the Conversion Rate per $1,000 principal amount of Securities. 
  

 9 








 “Trustee” means the party named as such in the first paragraph of this Indenture until a
successor replaces it in accordance with the provisions of this Indenture, and thereafter means the successor. 
  
 “Trust Officer” means, with respect to the Trustee, any officer assigned to the Corporate Trust Office, and also, with respect to a particular
matter, any other officer to whom such matter is referred because of such officer’s knowledge of and familiarity with the particular subject. 
  
 “Vice President” when used with respect to the Company or the Trustee, means any vice president, whether or not designated by a number or a word
or words added before or after the title “vice president.” 
  
 “Voting Stock” of a Person means all classes of Capital Stock or other interests (including partnership interests) of such Person then outstanding and normally entitled (without regard to the occurrence of any contingency within
the control of such person to satisfy) to vote in the election of directors, managers or trustees thereof. 
  
 Section 1.02. Other Definitions. 
  

			
	 Term

	  	Defined in Section


	 “Additional Change of Control Shares”
	  	4.01
	 “Agent Members”
	  	2.01
	 “Business Combination”
	  	4.10
	 “Company Order”
	  	2.02
	 “Conversion Agent”
	  	2.03
	 “Conversion Date”
	  	4.02
	 “Current Market Price”
	  	4.06
	 “DTC”
	  	2.01
	 “Depositary”
	  	2.01
	 “Determination Date”
	  	4.06
	 “Distributed Securities”
	  	4.06
	 “Distribution Notice”
	  	4.01
	 “Event of Default”
	  	7.01
	 “Expiration Date”
	  	4.06
	 “Expiration Time”
	  	4.06
	 “Fundamental Change Company Notice”
	  	3.01
	 “Fundamental Change Conversion Notice”
	  	4.01
	 “Fundamental Change Repurchase Date”
	  	3.01
	 “Fundamental Change Repurchase Notice”
	  	3.01
	 “Legal Holiday”
	  	13.07
	 “Legend”
	  	2.12
	 “Notice of Default”
	  	7.01
	 “Paying Agent”
	  	2.03
	 “Payment Blockage Notice”
	  	11.03
	 “Payment Default”
	  	7.01
	 “Primary Registrar”
	  	2.03
	 “Purchase Agreement”
	  	2.01
	 “Purchased Shares”
	  	4.06
	 “purchases”
	  	4.06
	 “record date”
	  	4.06
	 “QIB”
	  	2.01

  

 10 









			
	 Term

	  	Defined in Section


	 “Registrar”
	  	2.03
	 “Remaining Shares”
	  	4.13
	 “Rights”
	  	4.06
	 “Rights Plan”
	  	4.06
	 “Spinoff Securities”
	  	4.06
	 “Spinoff Valuation Period”
	  	4.06
	 “tender offer”
	  	4.06
	 “tendered shares”
	  	4.06
	 “Triggering Distribution”
	  	4.06
	 “unrestricted subsidiary”
	  	12.06

  
 Section 1.03.
Trust Indenture Act Provisions. 
  
 Whenever this
Indenture refers to a provision of the TIA, that provision is incorporated by reference in and made a part of this Indenture. This Indenture shall also include those provisions of the TIA required to be included herein by the provisions of the Trust
Indenture Reform Act of 1990. The following TIA terms used in this Indenture have the following meanings: 
  
 “indenture securities” means the Securities; 
  
 “indenture security holder” means a Holder of a Security; 
  
 “indenture to be qualified” means this Indenture; 
  
 “indenture trustee” or “institutional trustee” means the Trustee; and 
  
 “obligor” on the indenture securities means the Company or any
other obligor on the Securities. 
  
 All other terms used in this
Indenture that are defined in the TIA, defined by TIA reference to another statute or defined by any SEC rule and not otherwise defined herein have the meanings assigned to them therein. 
  
 Section 1.04. Rules Of Construction. 
  

	 	(a)	Unless the context otherwise requires: 

  
 (1) a term has the meaning assigned to it; 
  
 (2) an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP; 
  
 (3) “or” is not exclusive; 
  
 (4) words in the singular include the plural, and words in
the plural include the singular; 
  
 (5)
provisions apply to successive events and transactions; 
  
 (6) the term “merger” includes a statutory share exchange and the term “merged” has a correlative meaning; 
  

 11 








 (7) the masculine gender includes the feminine and the neuter; 
  
 (8) the terms “include”, “including” and
similar terms should be construed as if followed by the phrase “without limitation”; 
  
 (9) references to agreements and other instruments include subsequent amendments thereto; and 
  
 (10) all “Article”, “Exhibit” and
“Section” references are to Articles, Exhibits and Sections, respectively, of or to this Indenture unless otherwise specified herein, and the terms “herein,” “hereof” and other words of similar import refer to this
Indenture as a whole and not to any particular Article, Section or other subdivision. 
  
 ARTICLE 2 
  
 THE
SECURITIES 
  
 Section 2.01. Form And Dating.

  
 The Securities and the Trustee’s certificate of
authentication shall be substantially in the respective forms set forth in Exhibit A, which Exhibit is incorporated in and made part of this Indenture. The Securities may have notations, legends or endorsements required by law, stock exchange or
automated quotation system rule or regulation or usage. The Company shall provide any such notations, legends or endorsements to the Trustee in writing. Each Security shall be dated the date of its authentication. The Securities are being offered
and sold by the Company pursuant to a Purchase Agreement dated November 16, 2005 (the “Purchase Agreement”) among the Company, the Guarantors and the Initial Purchasers, in transactions exempt from, or not subject to, the registration
requirements of the Securities Act. 
  
 (a) Restricted Global
Securities. All of the Securities are initially being offered and sold to qualified institutional buyers as defined in Rule 144A (collectively, “QIBs” or individually, each a “QIB”) in reliance on Rule 144A under the
Securities Act and shall be issued initially in the form of one or more Restricted Global Securities, which shall be deposited on behalf of the purchasers of the Securities represented thereby with the Trustee, at its Corporate Trust Office, as
custodian for the depositary, The Depository Trust Company (“DTC”, and such depositary, or any successor thereto, being hereinafter referred to as the “Depositary”), and registered in the name of its nominee, Cede & Co.
(or any successor thereto), for the accounts of participants in the Depositary, duly executed by the Company and authenticated by the Trustee as hereinafter provided. The aggregate principal amount of the Restricted Global Securities may from time
to time be increased or decreased by adjustments made on the records of the Securities Custodian as hereinafter provided, subject in each case to compliance with the Applicable Procedures. 
  
 (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 replacements, exchanges, purchases or conversions of such Securities. 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 and shall be made on the records
of the Trustee and the Depositary. 
  

 12 








 Members of, or participants in, the Depositary (“Agent Members”) shall have no rights under
this Indenture with respect to any Global Security held on their behalf by the Depositary or under the Global Security, and the Depositary (including, for this purpose, its nominee) 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 (1) 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 (2) impair, as between the Depositary and its Agent Members, the operation of customary practices governing the exercise of the rights
of a Holder of any Security. 
  
 (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 (1) shall be registered in the name of the Depositary or its nominee,
(2) shall be delivered by the Trustee to the Depositary or pursuant to the Depositary’s instructions and (3) shall bear legends substantially to the following effect: 
  
 “UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE COMPANY OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY
PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS
SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES
IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH
NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.” 
  
 Section 2.02. Execution And Authentication. 
  
 (a) The aggregate principal amount of Securities which may be authenticated and delivered under this Indenture is limited to $150,000,000, except as provided in Sections 2.06 and 2.07. 
  
 (b) An Officer shall sign the Securities for the Company by manual or
facsimile signature. Typographic and other minor errors or defects in any such facsimile signature shall not affect the validity or enforceability of any Security that has been authenticated and delivered by the Trustee. 
  
 (c) If an Officer whose signature is on a Security no longer holds that
office at the time the Trustee authenticates the Security, the Security shall be valid nevertheless. 
  

 13 








 (d) A Security shall not be valid until an authorized signatory of the Trustee by manual or facsimile
signature signs the certificate of authentication on the Security. The signature shall be conclusive evidence that the Security has been authenticated under this Indenture. 
  
 (e) The Trustee shall authenticate and make available for delivery Securities for original issue in the aggregate principal
amount of up to $150,000,000 upon receipt of a written order or orders of the Company signed by an Officer of the Company (a “Company Order”). The Company Order shall specify the amount of Securities to be authenticated, shall provide that
all such Securities will be represented by a Restricted Global Security and the date on which each original issue of Securities is to be authenticated. 
  
 (f) The Trustee shall act as the initial authenticating agent. Thereafter, the Trustee may appoint an authenticating agent acceptable to the Company to
authenticate Securities. An authenticating agent may authenticate Securities whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such agent. An authenticating agent shall have
the same rights as an Agent to deal with the Company or an Affiliate of the Company. 
  
 (g) The Securities shall be issuable only in registered form without coupons and only in denominations of $1,000 principal amount and any integral multiple thereof. 
  
 Section 2.03. Registrar, Paying Agent and Conversion Agent.

  
 (a) The Company shall maintain one or more offices or
agencies where Securities may be presented for registration of transfer or for exchange (each, a “Registrar”), one or more offices or agencies where Securities may be presented for payment (each, a “Paying Agent”), one or more
offices or agencies where Securities may be presented for conversion (each, a “Conversion Agent”) and one or more offices or agencies where notices and demands to or upon the Company in respect of the Securities and this Indenture may be
served. The Company will at all times maintain a Paying Agent, Conversion Agent, Registrar and an office or agency where notices and demands to or upon the Company in respect of the Securities and this Indenture may be served in the Borough of
Manhattan, The City of New York. One of the Registrars (the “Primary Registrar”) shall keep a register of the Securities and of their transfer and exchange. 
  
 (b) The Company shall enter into an appropriate agency agreement with any Agent not a party to this Indenture, provided that
the Agent may be an Affiliate of the Trustee. The agreement shall implement the provisions of this Indenture that relate to such Agent. The Company shall notify the Trustee of the name and address of any Agent not a party to this Indenture. If the
Company fails to maintain a Registrar, Paying Agent, Conversion Agent, or agent for service of notices and demands in any place required by this Indenture, or fails to give the foregoing notice, the Trustee shall act as such. The Company or any
Affiliate of the Company may act as Paying Agent (except for the purposes of Section 5.01 and Article 9). 
  
 (c) The Company hereby initially designates the Trustee as Paying Agent, Registrar, Securities Custodian and Conversion Agent, and designates the
Corporate Trust Office of the Trustee as the office or agency of the Company for each of the aforesaid purposes and as the office or agency where notices and demands to or upon the Company in respect of the Securities and this Indenture may be
served. 
  

 14 








 Section 2.04. Paying Agent To Hold Money In Trust. 
  
 Prior to 10:00 a.m., New York City time, on each due date of the payment of
principal of, or interest on, any Securities, the Company shall deposit a sum sufficient to pay such principal or interest so becoming due. Subject to Section 9.02, a Paying Agent shall hold in trust for the benefit of Holders of Securities or
the Trustee all money held by the Paying Agent for the payment of principal of, or interest on, the Securities, and shall notify the Trustee of any failure by the Company (or any other obligor on the Securities) to make any such payment. If the
Company or an Affiliate of the Company acts as Paying Agent, it shall, before 10:00 a.m., New York City time, on each due date of the principal of, or interest on, any Securities, segregate the money 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 the Trustee may at any time during the continuance of any Default, upon written request to a Paying Agent, require such Paying Agent to pay forthwith to the
Trustee all sums so held in trust by such Paying Agent. Upon doing so, the Paying Agent (other than the Company) shall have no further liability for the money. 
  

Section 2.05. Lists of Holders of Securities. 
  
 The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Holders of
Securities. If the Trustee is not the Primary Registrar, the Company shall furnish to the Trustee on or before each Interest Payment Date and at such other times as the Trustee may request in writing, a list in such form and as of such date as the
Trustee may reasonably require of the names and addresses of Holders of Securities. 
  
 Section 2.06. Transfer And Exchange. 
  
 (a) Subject to compliance with any applicable additional requirements contained in Section 2.12, when a Security is presented to a Registrar with a request to register a transfer thereof or to exchange such
Security for an equal principal amount of Securities of other authorized denominations, the Registrar shall register the transfer or make the exchange as requested; provided, however, that every Security presented or surrendered for registration of
transfer or exchange shall be duly endorsed or accompanied by an assignment form and, if applicable, a transfer certificate each in the form included in Exhibit A, and completed in a manner satisfactory to the Registrar and duly executed by the
Holder thereof or its attorney duly authorized in writing. To permit registration of transfers and exchanges, upon surrender of any Security for registration of transfer or exchange at an office or agency maintained pursuant to Section 2.03,
the Company shall execute and the Trustee shall authenticate Securities of a like aggregate principal amount at the Registrar’s request. Any exchange or transfer shall be without charge, except that the Company or the Registrar may require
payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto; provided that this sentence shall not apply to any exchange pursuant to Section 2.10, 2.12(a), 3.05, 4.02(e) or 10.05.

  
 (b) Neither the Company, any Registrar nor the Trustee shall
be required to exchange or register a transfer of any Securities or portions thereof in respect of which a Fundamental Change Repurchase Notice has been delivered and not withdrawn by the Holder thereof (except, in the case of the purchase of a
Security in part, the portion thereof not to be purchased). 
  
 (c) All Securities issued upon any transfer or exchange of Securities shall be valid obligations of the Company, evidencing the same debt and entitled to the same benefits under this Indenture as the Securities surrendered upon such
transfer or exchange. 
  

 15 








 (d) Any Registrar appointed pursuant to Section 2.03 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) Each Holder of a Security agrees to indemnify the Company and the Trustee against any liability that may result from the transfer, exchange or
assignment of such Holder’s Security in violation of any provision of this Indenture and/or applicable United States federal or state securities law. 
  
 (f) The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this
Indenture or under applicable law with respect to any transfer of any interest in any Security (including any transfers between or among Agent Members or other beneficial owners of interests in any Global Security) other than to require delivery of
such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by the terms of, this Indenture, and to examine the same to determine substantial compliance as to form with the express
requirements hereof. 
  
 Section 2.07. Replacement
Securities. 
  
 (a) If any mutilated Security is surrendered
to the Company, a Registrar or the Trustee, and the Company, a Registrar and the Trustee receive evidence to their satisfaction of the destruction, loss or theft of any Security, and there is delivered to the Company, the applicable Registrar and
the Trustee such security or indemnity as will be required by them to save each of them harmless, then, in the absence of notice to the Company, such Registrar or the Trustee that such Security has been acquired by a bona fide purchaser, the Company
shall execute, and upon its 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. 
  
 (b) If 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 3, or converted pursuant to Article 4, the Company in its discretion may, instead of
issuing a new Security, pay, purchase or convert such Security, as the case may be. 
  
 (c) Upon the issuance of any new Securities under this Section 2.07, 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 reasonable expenses (including the reasonable fees and expenses of the Trustee or the Registrar) in connection therewith. 
  
 (d) Every new Security issued pursuant to this Section 2.07 in lieu of any mutilated, destroyed, lost or stolen Security shall constitute an original
additional contractual obligation of the Company, whether or not the mutilated, 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. 
  
 (e) The
provisions of this Section 2.07 are (to the extent lawful) 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.

  

 16 








 Section 2.08. Outstanding Securities. 
  
 (a) Securities outstanding at any time are all Securities authenticated by
the Trustee, except for those canceled by it, those purchased pursuant to Article 3, those converted pursuant to Article 4, those delivered to the Trustee for cancellation or surrendered for transfer or exchange and those described in this
Section 2.08 as not outstanding. 
  
 (b) If a Security is
replaced pursuant to Section 2.07, it ceases to be outstanding unless the Company receives proof satisfactory to it that the replaced Security is held by a bona fide purchaser. 
  
 (c) If a Paying Agent (other than the Company or an Affiliate of the Company) holds in respect of the outstanding Securities
on a Fundamental Change Repurchase Date or the Final Maturity Date money sufficient to pay the principal of (including premium, if any) and accrued interest on Securities (or portions thereof) payable on that date, then on and after such Fundamental
Change Repurchase Date or Final Maturity Date, as the case may be, such Securities (or portions thereof, as the case may be) shall cease to be outstanding and interest on them shall cease to accrue. 
  
 (d) Subject to the restrictions contained in Section 2.09, a Security
does not cease to be outstanding because the Company or an Affiliate of the Company holds the Security. 
  
 Section 2.09. Treasury Securities. 
  
 In determining whether the Holders of the required principal amount of Securities have concurred in any notice, direction, waiver or consent, Securities
owned by the Company or any other obligor on the Securities or by any Affiliate of the Company or of such other obligor shall be disregarded, except that, for purposes of determining whether the Trustee shall be protected in relying on any such
notice, direction, waiver or consent, only Securities which a Trust Officer of the Trustee with responsibility for this Indenture actually knows are so owned shall be so disregarded. Securities so owned which have been pledged in good faith shall
not be disregarded if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to the Securities and that the pledgee is not the Company or any other obligor on the Securities or any Affiliate of the
Company or of such other obligor. 
  
 Section 2.10.
Temporary Securities. 
  
 Until definitive Securities are
ready for delivery, the Company may prepare and execute, and, upon receipt of a Company Order, the Trustee shall authenticate and deliver, temporary Securities. Temporary Securities shall be substantially in the form of definitive Securities but may
have variations that the Company with the consent of the Trustee considers appropriate for temporary Securities. Without unreasonable delay, the Company shall prepare and the Trustee shall authenticate and deliver definitive Securities in exchange
for temporary Securities. 
  
 Section 2.11.
Cancellation. 
  
 The Company at any time may deliver
Securities to the Trustee for cancellation. The Registrar, the Paying Agent and the Conversion Agent shall forward to the Trustee or its agent any Securities surrendered to them for transfer, exchange, purchase, payment or conversion. The Trustee
and no one else shall cancel, in accordance with its standard procedures, all Securities surrendered for transfer, exchange, purchase, payment, conversion or cancellation and shall dispose of the cancelled Securities in accordance with its customary
procedures or deliver the canceled Securities to the Company. All Securities which are purchased or otherwise acquired by the Company or any of its Subsidiaries prior to the Final Maturity Date pursuant to Article 3 shall be delivered to the Trustee
for cancellation, and the Company may not hold or resell such Securities or issue any new Securities to replace any such Securities or any Securities that any Holder has converted pursuant to Article 4. 
  

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 Section 2.12. Legend; Additional Transfer And Exchange Requirements. 
  
 (a) 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 as Exhibit A (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 if requested by the Company and
such Registrar, 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; provided that no such evidence need be supplied in connection with the sale of such Security pursuant to a
registration statement that is effective at the time of such sale. Upon (1) provision of such satisfactory evidence if requested, or (2) 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. 
  
 (b) 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 this Section 2.12. 
  
 (c) Subject to Section 2.12(b), every Security shall be subject to the restrictions on transfer provided in the Legend. Whenever any Restricted Security other than a Restricted Global Security is presented or
surrendered for registration of transfer or in 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 A, 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. 
  
 (d) 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 or any successor provision, by, if requested by the Company or the Registrar, an Opinion of Counsel reasonably acceptable to the Company and the Registrar
and addressed to the Company and the Registrar, 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 
  

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 new Security, of like tenor and aggregate principal amount, which shall not bear the restrictive Legend. The Company
shall inform the Trustee of the effective date of any registration statement registering the offer and sale of 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. 
  
 As used in Sections 2.12(c) and (d), the term “transfer” encompasses any sale, pledge, transfer, hypothecation or other disposition of any Security. 
  
 (e) The provisions below shall apply only to Global Securities: 

 
 (1) Each Global Security authenticated under this
Indenture shall be registered in the name of the Depositary or a nominee thereof and delivered to such Depositary or a nominee thereof or custodian therefor, and each such Global Security shall constitute a single Security for purposes of this
Indenture. 
  
 (2) 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, and no transfer of a Global Security in whole or in part shall be 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 (A) the Depositary has notified the Company
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 after receiving such notice or becoming aware that the Depositary has ceased to be a “clearing agency”, or (B) an Event of Default has occurred and is continuing with respect to the Securities. Any Global Security exchanged
pursuant to subclause (A) above shall be so exchanged in whole and not in part, and any Global Security exchanged pursuant to subclause (B) 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 further 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. 
  
 (3) 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. 
  
 (4) Subject to clause (6) of this Section 2.12(e), the registered Holder may grant proxies and
otherwise authorize any Person, including Agent Members 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. 
  

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 (5) In the event of the occurrence of any of the events specified in clause (1) of
this Section 2.12(e), the Company will promptly make available to the Trustee a reasonable supply of Certificated Securities in definitive, fully registered form, without interest coupons. 
  
 (6) Neither 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. 
  
 (7) At such time as all interests in a Global Security have
been converted, cancelled or exchanged for Securities in certificated form, such Global Security shall, upon receipt thereof, be cancelled by the Trustee in accordance with standing procedures and instructions existing between the Depositary and the
Securities Custodian, subject to Section 2.11 of this Indenture. At any time prior to such cancellation, if any interest in a Global Security is converted, canceled or exchanged for Securities in certificated form, the principal amount of such
Global Security shall, in accordance with the standing procedures and instructions existing between the Depositary and the Securities Custodian, be appropriately reduced, and an endorsement shall be made on such Global Security, by the Trustee or
the Securities Custodian, at the direction of the Trustee, to reflect such reduction. 
  
 Section 2.13. CUSIP Numbers. 
  
 The Company in issuing the Securities may use one or more “CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of purchase 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 purchase and that reliance may be placed only on the other
identification numbers printed on the Securities, and any such purchase 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. 
  
 Section 2.14. Calculations. 
  
 The calculation of the Fundamental Change Repurchase Price, Conversion Rate,
Conversion Price and each other calculation to be made hereunder shall be the obligation of the Company. All calculations made by the Company as contemplated pursuant to this Section 2.14 or otherwise pursuant to the Securities shall be made in
good faith, using commercially reasonable standards and shall be final and binding on the Company and the Holders absent manifest error. The Trustee, Paying Agent and Conversion Agent shall not be obligated to recalculate, recompute or confirm any
such calculations. The Company shall provide a schedule of its calculations to the Trustee, certified by an officer, promptly after making such calculations. 
  

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 ARTICLE 3 
  

REPURCHASE 
  
 Section 3.01. Repurchase Of Securities At Option Of The Holder Upon a Fundamental Change. 
  
 (a) If a Fundamental Change occurs prior to the Final Maturity Date, each
Holder of a Security shall have the right, at the option of the Holder, to require the Company to repurchase for cash all or any portion of the Securities of such Holder equal to $1,000 principal amount (or an integral multiple thereof) at the
Fundamental Change Repurchase Price, on the date that is 30 Business Days after the later of the effective date of the Fundamental Change and the date of the Fundamental Change Company Notice pursuant to subsection 3.01(b) (the “Fundamental
Change Repurchase Date”). 
  
 (b) On or before the 30th day
after the Company knows or reasonably should know that a Fundamental Change has occurred, the Company shall mail a written notice of the Fundamental Change and of the resulting repurchase right to the Trustee, Paying Agent and to each Holder (and to
beneficial owners as required by applicable law) (the “Fundamental Change Company Notice”). The Fundamental Change Company Notice shall include the form of a Fundamental Change Repurchase Notice to be completed by the Holder and shall
state: 
  
 (1) the events causing such
Fundamental Change; 
  
 (2) the date (or expected
date) of such Fundamental Change; 
  
 (3) the
last date by which the Fundamental Change Repurchase Notice must be delivered to elect the repurchase option pursuant to this Section 3.01; 
  
 (4) the Fundamental Change Repurchase Date; 
  
 (5) the Fundamental Change Repurchase Price; 
  
 (6) the Holder’s right to require the Company to purchase the Securities; 
  
 (7) the name and address of each Paying Agent and Conversion
Agent; 
  
 (8) the then effective Conversion Rate
and any adjustments to the Conversion Rate resulting from such Fundamental Change; 
  
 (9) the procedures that the Holder must follow to exercise rights under Article 4 and that Securities as to which a Fundamental Change
Repurchase Notice has been given may be converted into Common Stock pursuant to Article 4 of this Indenture only to the extent that the Fundamental Change Repurchase Notice has been withdrawn in accordance with the terms of this Indenture;

  
 (10) the procedures that the Holder must
follow to exercise rights under this Section 3.01; 
  
 (11) the procedures for withdrawing a Fundamental Change Repurchase Notice; 
  

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 (12) that, unless the Company fails to pay such Fundamental Change Repurchase Price,
Securities covered by any Fundamental Change Repurchase Notice will cease to be outstanding and interest and Additional Interest, if any, will cease to accrue on and after the Fundamental Change Repurchase Date; and 
  
 (13) the CUSIP number of the Securities. 
  
 At the Company’s request, the Trustee shall give such Fundamental Change
Company Notice in the Company’s name and at the Company’s expense; provided, that, in all cases, the text of such Change of Control Company Notice shall be prepared by the Company. In connection with the delivery of the Change of Control
Company Notice to the Holders, the Company shall publish a notice containing substantially the same information that is required in the Fundamental Change Company Notice in a newspaper of general circulation in the City of New York or publish
information on a website of the Company or through such other public medium the Company may use at that time. If any of the Securities is in the form of a Global Security, then the Company shall modify such notice to the extent necessary to accord
with the Applicable Procedures relating to the purchase of Global Securities. 
  
 (c) A Holder may exercise its rights specified in Section 3.01(a) upon delivery of a written notice (which shall be in substantially the form attached as Exhibit A under the heading “Fundamental Change
Repurchase Notice” and which may be delivered by letter, overnight courier, hand delivery, facsimile transmission or in any other written form and, in the case of Global Securities, may be delivered electronically or by other means in
accordance with the Depositary’s Applicable Procedures) of the exercise of such rights (a “Fundamental Change Repurchase Notice”) to the Company or any Paying Agent at any time prior to the close of business on the Business Day next
preceding the Fundamental Change Repurchase Date, subject to extension to comply with applicable law. 
  
 (1) The Fundamental Change Repurchase Notice shall state: (A) the certificate number (if such Security is held other than in global
form) of the Security which the Holder will deliver to be purchased (or, if the Security is held in global form, any other items required to comply with the Applicable Procedures), (B) the portion of the principal amount of the Security which
the Holder will deliver to be purchased and (C) that such Security shall be purchased as of the Fundamental Change Repurchase Date pursuant to the terms and conditions specified in the Securities and in this Indenture. 
  
 (2) The delivery of a Security for which a Fundamental
Change Repurchase Notice has been timely delivered to any Paying Agent and not validly withdrawn prior to, on or after the Fundamental Change Repurchase Date (together with all necessary endorsements) at the office of such Paying Agent shall be a
condition to the receipt by the Holder of the Fundamental Change Repurchase Price therefor. 
  
 (3) The Company shall only be obliged to purchase, pursuant to this Section 3.01, 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). 
  
 (4) Notwithstanding anything herein to the contrary, any
Holder delivering to a Paying Agent the Fundamental Change Repurchase Notice contemplated by this Section 3.01(c) shall have the right to withdraw such Fundamental Change Repurchase Notice in whole or in a portion thereof that is a principal
amount of $1,000 or in an integral multiple thereof at any time prior to the close of business on the Business Day prior to the Fundamental Change Repurchase Date by delivery of a written notice of withdrawal to the Paying Agent in accordance with
Section 3.02. 
  

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 (5) A Paying Agent shall promptly notify the Company of the receipt by it of any
Fundamental Change Repurchase Notice or written withdrawal thereof. 
  
 (6) Anything herein to the contrary notwithstanding, in the case of Global Securities, any Fundamental Change Repurchase Notice may be delivered or withdrawn and such Securities may be surrendered or delivered for
purchase in accordance with the Applicable Procedures as in effect from time to time. 
  
 (d) The Company shall deposit cash at the time and in the manner as provided in Section 3.03, sufficient to pay the aggregate Fundamental Change Repurchase Price of all Securities to be purchased pursuant to this
Section 3.01. 
  
 Section 3.02. Effect Of Fundamental
Change Repurchase Notice. 
  
 (a) Upon receipt by any Paying
Agent of a properly completed Fundamental Change Repurchase Notice from a Holder, the Holder of the Security in respect of which such Fundamental Change Repurchase Notice was given shall (unless such Fundamental Change Repurchase Notice is withdrawn
as specified in Section 3.02(b)) thereafter be entitled to receive the Fundamental Change Repurchase Price with respect to such Security, subject to the occurrence of the Fundamental Change Effective Date. Such Fundamental Change Repurchase
Price shall be paid to such Holder promptly following the later of (1) the Fundamental Change Repurchase Date (provided that the conditions in Section 3.01 have been satisfied) and (2) the time of delivery of such Security to a Paying
Agent by the Holder thereof in the manner required by Section 3.01(c). Securities in respect of which a Fundamental Change Repurchase Notice has been given by the Holder thereof may not be converted into shares of Common Stock pursuant to
Article 4 on or after the date of the delivery of such Fundamental Change Repurchase Notice unless such Fundamental Change Repurchase Notice has first been validly withdrawn in accordance with Section 3.02(b) with respect to the Securities to
be converted. 
  
 (b) A Fundamental Change Repurchase Notice may
be withdrawn by means of a written notice (which may be delivered by mail, overnight courier, hand delivery, facsimile transmission or in any other written form and, in the case of Global Securities, may be delivered electronically or by other means
in accordance with the Applicable Procedures) of withdrawal delivered by the Holder to a Paying Agent at any time prior to the close of business on the Business Day immediately prior to the Fundamental Change Repurchase Date, specifying (1) the
principal amount of the Security or portion thereof (which must be a principal amount of $1,000 or an integral multiple of $1,000 in excess thereof) with respect to which such notice of withdrawal is being submitted, (2) if certificated
Securities have been issued, the certificate number of the Security being withdrawn in whole or in withdrawable part (or if the Securities are not certificated, such written notice must comply with the procedures of the Depositary) and (3) the
portion of the principal amount of the Security that will remain subject to the Fundamental Change Repurchase Notice, which portion must be a principal amount of $1,000 or an integral multiple thereof. 
  
 Section 3.03. Deposit Of Fundamental Change Repurchase Price.

  
 (a) On or before 10:00 a.m. New York City time on the
Business Day following the applicable Fundamental Change Repurchase Date, the Company shall deposit with the Trustee or with a Paying Agent (or if the Company or an Affiliate of the Company 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 if deposited on or after such Fundamental Change Repurchase Date), sufficient to pay the aggregate Fundamental Change Repurchase Price of all the Securities
or portions thereof that are to be purchased as of the Fundamental Change Repurchase Date. 
  

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 (b) If a Paying Agent or the Trustee holds, in accordance with the terms hereof, money sufficient to pay
the Fundamental Change Repurchase Price of any Security for which a Fundamental Change Repurchase Notice has been tendered and not withdrawn in accordance with this Indenture then, on the Business Day following the applicable Fundamental Change
Repurchase Date, such Security will cease to be outstanding, whether or not the Security is delivered to the paying Agent or the trustee, and interest and Additional Interest, if any, shall cease to accrue, and the rights of the Holder in respect of
the Security shall terminate (other than the right to receive the Fundamental Change Repurchase Price as aforesaid). The Company shall publicly announce the principal amount of Securities repurchased on or as soon as practicable after the
Fundamental Change Repurchase Date. 
  
 (c) The Paying Agent will
promptly return to the respective Holders any Securities with respect to which a Fundamental Change Repurchase Notice has been withdrawn in compliance with this Indenture. 
  
 (d) If a Fundamental Change Repurchase Date falls after a Regular Record Date and on or before the related Interest Payment
Date, then interest on the Securities payable on such Interest Payment Date will be payable to the Holders in whose names the Securities are registered at the close of business on such Regular Record Date. 
  
 Section 3.04. Repayment To The Company. 
  
 To the extent that the aggregate amount of cash deposited by the Company
pursuant to Section 3.03 exceeds the aggregate Fundamental Change Repurchase Price of the Securities or portions thereof that the Company is obligated to purchase, then promptly after the Fundamental Change Repurchase Date the Trustee or a
Paying Agent, as the case may be, shall return any such excess cash to the Company. 
  
 Section 3.05. Securities Purchased In Part. 
  
 Any Security that is to be purchased only in part shall be surrendered at the office of a Paying Agent, and promptly after the Fundamental Change Repurchase Date 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 such authorized denomination or denominations as may be requested by such Holder (which must be equal to $1,000 principal amount or any
integral thereof), in aggregate principal amount equal to, and in exchange for, the portion of the principal amount of the Security so surrendered that is not purchased. 
  
 Section 3.06. Compliance With Securities Laws Upon Purchase Of Securities. 
  
 In connection with any offer to purchase Securities under Section 3.01,
the Company shall (a) comply with Rule 13e-4 and Rule 14e-1 (or any successor to either such Rule), and any other tender offer rules, if applicable, under the Exchange Act, (b) file the related Schedule TO (or any successor or similar
schedule, form or report) if required under the Exchange Act, and (c) otherwise comply with all federal and state securities laws in connection with such offer to purchase or purchase of Securities, all so as to permit the rights of the Holders
and obligations of the Company under Sections 3.01 through 3.04 to be exercised in the time and in the manner specified therein. To the extent that compliance with any such laws, rules and regulations would result in a conflict with any of the terms
hereof, this Indenture is hereby modified to the extent required for the Company to comply with such laws, rules and regulations. 
  

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 Section 3.07. Purchase Of Securities In Open Market. 
  
 The Company (a) shall, on or prior to the date that is two years from
the latest issuance of any Securities, in accordance with Section 2.11 surrender any Security purchased by the Company pursuant to this Article 3 to the Trustee for cancellation, and (b) after such date, may surrender such Security to the
Trustee for cancellation as aforesaid. Any Securities surrendered to the Trustee for cancellation may not be reissued or resold by the Company and will be canceled promptly in accordance with Section 2.11. The Company may repurchase Securities
in open market and negotiated transactions. 
  
 ARTICLE 4

  
 CONVERSION 
  
 Section 4.01. Conversion Privilege And Conversion Rate.

  
 (a) Subject to the obligation and the right of the Company to
pay some or all of the conversion consideration in cash in accordance with Section 4.13, and upon compliance with the provisions of this Article 4, at the option of the Holder thereof, any Security or portion thereof that is an integral
multiple of $1,000 principal amount may be converted into fully paid and nonassessable shares (calculated as to each conversion to the nearest 1/100th of a share) of Common Stock prior to the close of business on the Business Day immediately
preceding the Final Maturity Date or such earlier date set forth in this Article 4, unless previously purchased by the Company at the Holders’ option, at the Conversion Rate in effect at such time, determined as hereinafter provided, in effect
at the time of conversion and subject to the adjustments described below, only under the following circumstances: 
  
 (1) during any calendar quarter commencing after March 31, 2006, and only during such calendar quarter, if, as of the last day of the
immediately preceding calendar quarter, the Closing Price per share of the Common Stock for at least 20 Trading Days in the period of the 30 consecutive Trading Days ending on the last Trading Day of such preceding calendar quarter was more than
120% of the Conversion Price; 
  
 (2) if the
Company distributes to all holders of Common Stock rights or warrants entitling them to purchase, for a period expiring within 45 days of the date of issuance, Common Stock at less than the Closing Price per share of the Common Stock on the day of
issuance; 
  
 (3) if the Company distributes to
all holders of Common Stock, assets, debt securities or rights to purchase the Company’s securities, which distribution has a per share value exceeding 15.0% of the Closing Price per share of the Common Stock on the Business Day preceding the
declaration date for such distribution; 
  
 (4)
if the Company is a party to any transaction or event (including any consolidation, merger or binding share exchange, other than changes resulting from a subdivision or combination), pursuant to which all or substantially all shares of the
Company’s Common Stock would be converted into cash, securities or other property; 
  
 (5) if a Fundamental Change occurs; 
  
 (6) at any time during the period beginning on May 15, 2012 and ending at the close of business on the Business Day immediately
preceding the Final Maturity Date; or 
  

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 (7) during the five Business Day period after any five consecutive Trading Day period in
which the Trading Price per $1,000 principal amount of Securities, as determined following a request by a Holder in accordance with the procedures described below in Section 4.01(e), for each day of that period was less than 98% of the product
of the Closing Price of the Company’s Common Stock and the Conversion Rate per $1,000 principal amount of securities. 
  
 (b) In the case of a distribution contemplated by clauses (2) and (3) of Section 4.01(a), the Company shall notify Holders at least 20 days
prior to the ex-dividend date for such distribution (the “Distribution Notice”). Once the Company has given the Distribution Notice, Holders may surrender their Securities for conversion at any time until the earlier of the close of
business on the last Business Day preceding the ex-dividend date (the first date on which the Common Stock trades, regular way, on the relevant market from which the Closing Price was obtained without the right to receive such right, warrant,
dividend or distribution) or the Company’s announcement that such distribution will not take place. In the event of a distribution contemplated by clauses (2) and (3) of Section 4.01(a), Holders may not convert the Securities if
the Holders will otherwise participate in such distribution without converting their Securities. The Company will provide written notice to the Conversion Agent as soon as reasonably practicable of any anticipated or actual event or transaction that
will cause or causes the Securities to become convertible pursuant to clauses (2) or (3) of Section 4.01(a). 
  
 (c) In the case of a transaction contemplated by clause (4) of Section 4.01(a), a holder may surrender notes for conversion at any time from and
after the date that is 15 days prior to the anticipated effective date of the transaction until the earlier of 15 days after the actual date of such transaction or the date that the Company announces that such transaction will not take place (or, if
such transaction also constitutes a Fundamental Change, during the period beginning 10 Trading Days prior to the anticipated effective date of the Fundamental Change through the Trading Day prior to the Fundamental Change Purchase Date). The Company
will notify Holders and the Trustee as promptly as practicable following the date the Company publicly announce such transaction (but in no event less than 15 days prior to the effective date of such transaction or, if such transaction also
constitutes a Fundamental Change, no later than the date the Company provides notice of the occurrence of the Fundamental Change). From and after the effective date of such transaction or event, the amount of cash, securities and other property
issuable upon conversion of a note will be based on the kind and amount of cash, securities or other property of The Pantry or another person that the holder would have received had the holder converted its note immediately prior to the transaction.

  
 (d) In the case of a transaction contemplated by clause
(5) of Section 4.01(a), the Company will notify the Holders and Trustee at least 10 Trading Days prior to the Fundamental Change Effective Date of any Fundamental Change that the Company knows or reasonably should know will occur (the
“Fundamental Change Conversion Notice”). If the Company does not know or should not reasonably know, that a Fundamental Change will occur until the date that is within 10 Trading Days before the anticipated Fundamental Change Effective
Date of any Fundamental Change, the Company will deliver a Fundamental Change Conversion Notice to Holders and the Trustee promptly after the Company has knowledge of such Fundamental Change. Holders may surrender Securities for conversion at any
time beginning 10 Trading Days before the anticipated Fundamental Change Effective Date of a Fundamental Change and until the Trading Day prior to the Fundamental Change Repurchase Date. The delivery of a Fundamental Change Conversion Notice to
Holders shall satisfy the Company’s obligation under Section 3.01(b) to deliver a Fundamental Change Company Notice if such Fundamental Change Conversion Notice contains all of the information that is otherwise required in a Fundamental
Change Company Notice. 
  
 (e) (i) For each calendar quarter
of the Company, beginning with the calendar quarter ending March 31, 2006, and ending with the calendar quarter ending March 31, 2012, the Conversion 
  

 26 








 Agent, on behalf of the Company, will determine, on the first Business Day following the last Trading Day of such
calendar quarter, whether the Securities are convertible pursuant to clause (1) of Section 4.01(a), and, if so, will notify the Trustee and the Company in writing. 
  
 (ii) The Trustee shall have no obligation to determine the Trading Price of the Securities and whether the Securities are
convertible pursuant to clause (7) of Section 4.01(a) 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 Trading Price per $1,000 principal amount of Securities would be less than 98% of the product of the Closing Price of our Common Stock and the Conversion Rate per $1,000 principal amount of Securities. At such time, the Company
shall instruct the Trustee to determine the Trading Price of the Securities beginning on the next Trading Day and on each successive Trading Day until the Trading Price per $1,000 principal amount of the Securities is greater than 98% of the product
of the Closing Price of the Company’s Common Stock and the Conversion Rate per $1,000 principal amount of the Securities. 
  
 (f) The conversion rights pursuant to this Article 4 shall commence on the initial issuance date of the Securities and expire at the close of business on
the Business Day immediately preceding the Final Maturity Date, but shall be exercisable only during the time periods specified with respect to each circumstance pursuant to which the Securities become convertible, subject, in the case of conversion
of any Global Security, to any Applicable Procedures. If a Security is submitted or presented for purchase pursuant to Article 3, such conversion right shall terminate at the close of business on the Business Day immediately preceding the
Fundamental Change Repurchase Date for such Security (unless the Company shall fail to make the Fundamental Change Repurchase Price payment when due in accordance with Article 3, in which case the conversion right shall terminate at the close of
business on the date such failure is cured and such Security is purchased). If a Security is convertible as a result of a Change of Control, such conversion right shall commence and terminate as set forth in Section 4.01(d). Securities in
respect of which a Fundamental Change Repurchase Notice has been delivered may not be surrendered for conversion pursuant to this Article 4 prior to a valid withdrawal of such Fundamental Change Repurchase Notice in accordance with the provisions of
Article 3. 
  
 (g) Provisions of this Indenture that apply to
conversion of all of a Security also apply to conversion of a portion of a Security. 
  
 (h) 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 only to the extent such Securities are deemed to have been
converted into Common Stock pursuant to this Article 4. 
  
 (i)
The Conversion Rate shall be adjusted in certain instances as provided in Section 4.01(j) and Section 4.06. 
  
 (j) If a transaction described in clause (i), (ii) or (iv) of the definition of Change of Control occurs and a Holder elects to convert its
Securities in connection with such Change of Control, the Company will increase the applicable Conversion Rate for the Securities surrendered for conversion by a number of additional shares of the Company’s Common Stock as provided below (the
“Additional Change of Control Shares”). A conversion of Securities will be deemed for the purposes of this Section 4.01(j) to be “in connection with” such a Change of Control if the notice of conversion of the Securities is
received by the Conversion Agent from and including the date that is 10 Trading Days prior to the anticipated Fundamental Change Effective Date up to and including the Trading Day prior to the Fundamental Change Repurchase Date. The number of
Additional Change of Control Shares per $1,000 principal amount of Securities shall be determined by reference to the table below, based on the Fundamental Change Effective Date of such Change of Control and the Stock Price of such Change of

  

 27 








 Control; provided that if the Stock Price or Fundamental Change Effective Date are not set forth on the table:
(i) if the actual Stock Price on the Fundamental Change Effective Date is between two Stock Prices on the table or the actual Fundamental Change Effective Date is between two Fundamental Change Effective Dates on the table, the Additional
Change of Control Shares will be determined by a straight-line interpolation between the Additional Change of Control Shares set forth for the two Stock Prices and the two Fundamental Change Effective Dates on the table based on a 365-day year, as
applicable, (ii) if the Stock Price on the Fundamental Change Effective Date exceeds $120 per share of the Company’s Common Stock, subject to adjustment as set forth herein, no Additional Change of Control Shares will be issued upon
conversion, and (iii) if the Stock Price on the Fundamental Change Effective Date is less than $39.29 per share, subject to adjustment as set forth herein, no Additional Change of Control Shares will be issued upon conversion. If Holders of our
Common Stock receive only cash in the Change of Control, the Stock Price shall be the cash amount paid per share of our Common Stock in connection with the Change of Control. Otherwise, the Stock Price shall be equal to the average Closing Price of
our Common Stock over the 10 consecutive Trading Day period ending on the Trading Day immediately preceding the applicable Fundamental Change Effective Date. 
  
 Additional Change of Control Shares Upon a Change of Control (Number of Additional Shares) 
  
 Fundamental Change Effective Date 
  

																	
	 Stock Price on
 Effective
Date

	  	11/22/05

	  	11/15/06

	  	11/15/07

	  	11/15/08

	  	11/15/09

	  	11/15/10

	  	11/15/11

	  	11/15/12


	 $39.29
	  	5.48	  	5.48	  	5.48	  	5.48	  	5.48	  	5.48	  	5.48	  	0.00
	 $45.00
	  	4.39	  	4.14	  	3.88	  	3.60	  	3.29	  	2.95	  	2.55	  	0.00
	 $50.00
	  	3.73	  	3.47	  	3.17	  	2.85	  	2.48	  	2.05	  	1.48	  	0.00
	 $55.00
	  	3.31	  	2.98	  	2.75	  	2.35	  	1.96	  	1.51	  	0.92	  	0.00
	 $60.00
	  	2.88	  	2.62	  	2.32	  	2.00	  	1.62	  	1.18	  	0.64	  	0.00
	 $70.00
	  	2.37	  	2.13	  	1.86	  	1.56	  	1.22	  	0.85	  	0.43	  	0.00
	 $80.00
	  	2.02	  	1.81	  	1.56	  	1.31	  	1.02	  	0.70	  	0.36	  	0.00
	 $90.00
	  	1.77	  	1.59	  	1.37	  	1.14	  	0.89	  	0.61	  	0.31	  	0.00
	 $100.00
	  	1.59	  	1.42	  	1.23	  	1.02	  	0.79	  	0.55	  	0.28	  	0.00
	 $120.00
	  	1.32	  	1.18	  	1.02	  	0.84	  	0.66	  	0.46	  	0.23	  	0.00

  
 The Stock Prices set
forth in the first column of the table above will be adjusted as of any date on which the Conversion Rate of the Securities is adjusted. The adjusted Stock Prices will equal the Stock Prices applicable immediately prior to such adjustment multiplied
by a fraction, the numerator of which is the Conversion Rate immediately prior to the adjustment giving rise to the Stock Price adjustment and the denominator of which is the Conversion Rate as so adjusted. The number of additional shares set forth
in the table above will be adjusted in the same manner as the Conversion Rate as set forth in Section 4.06 hereof, other than as a result of an adjustment of the Conversion Rate by adding the Additional Change of Control Shares as described
above. 
  
 Notwithstanding the foregoing paragraph, in no event
will the total number of shares of Common Stock issuable upon conversion of a Security exceed 25.4517 per $1,000 principal amount, subject to proportional adjustment in the same manner as the Conversion Rate as set forth in clauses
(1) through (4) of Section 4.06(a) hereof. 
  
 (k)
By delivering the amount of cash and/or the number of shares of Common Stock issuable on conversion to the Trustee, the Company will be deemed to have satisfied its obligation to pay the principal amount of the Securities so converted and its
obligation to pay accrued and unpaid interest, and Additional Interest if any, attributable to the period from the most recent Interest Payment Date through the Conversion Date (which amount will be deemed paid in full rather than cancelled,
extinguished or forfeited). 
  

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 (l) Notwithstanding anything else contained herein, the Securities shall not become subject to conversion
by reason of a merger, consolidation, or other transaction effected with one of the Company’s direct or indirect Subsidiaries for the purpose of changing the Company’s state of incorporation to any other state within the United States or
the District of Columbia. 
  
 Section 4.02. Conversion
Procedure. 
  
 (a) To convert a Security, a Holder must
(1) complete and manually sign the conversion notice on the back of the Security and deliver such notice to a Conversion Agent, (2) surrender the Security to a Conversion Agent, (3) furnish appropriate endorsements and transfer
documents if required by a Registrar or a Conversion Agent, and (4) pay all transfer or similar taxes, if required pursuant to Section 4.04. The date on which the Holder satisfies all of those requirements is the “Conversion
Date.” Upon the conversion of a Security, the Company will pay the cash and deliver the shares of Common Stock, as applicable, as promptly as practicable after the later of the Conversion Date and the date that all calculations necessary to
make such payment and delivery have been made, but in no event later than five Business Days after the later of those dates. Anything herein to the contrary notwithstanding, in the case of Global Securities, conversion notices may be delivered and
such Securities may be surrendered for conversion in accordance with the Applicable Procedures as in effect from time to time. 
  
 (b) The person in whose name the shares of Common Stock are issuable upon conversion shall be deemed to be a holder of record of such Common Stock on the
later of (i) the Conversion Date, (ii) the expiration of the period in which the Company may elect to deliver cash in lieu of shares of Common Stock, or (iii) if the Company elects to deliver cash in lieu of some, but not all, of such
shares of Common Stock, the date on which the amount of cash issuable per Security has been determined; provided, however, that no surrender of a Security on any Conversion 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 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 Rate in effect on the Conversion Date 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. Except as set
forth in this Indenture, no payment or adjustment will be made for dividends or distributions declared or made on shares of Common Stock issued upon conversion of a Security prior to the issuance of such shares. 
  
 (c) Holders of Securities surrendered for conversion (in whole or in part)
during the period from the close of business on any Regular Record Date to the opening of business on the next succeeding Interest Payment Date will receive the semi-annual interest payable on such Securities on the corresponding Interest Payment
Date notwithstanding the conversion. Upon surrender of any such Securities for conversion such Securities shall also be accompanied by payment in funds acceptable to the Company of an amount equal to the interest payable on such corresponding
Interest Payment Date; provided that no such payment need be made (i) in connection with any conversion following the Regular Record Date immediately preceding the final interest payment date, (ii) if such Securities are being converted
solely pursuant to Section 4.01(a)(5) and the Company specifies a Fundamental Change Repurchase Date that is after a record date and on or prior to the corresponding interest payment date, or (iii) to the extent of any overdue interest, if
any overdue interest exists at the time of conversion 
  

 29 








 with respect to such Security. Except as otherwise provided in this Section 4.02(c), no payment or adjustment will
be made for accrued interest on a converted Security. The Company will not be required to convert any Securities which are surrendered for conversion without payment of interest as required by this Section 4.02(c). 
  
 (d) Subject to Section 4.02(c), nothing in this Section shall affect the
right of a Holder in whose name any Security is registered at the close of business on a Regular Record Date to receive the interest payable on such Security on the related Interest Payment Date in accordance with the terms of this Indenture, the
Securities and the Registration Rights Agreement. If a Holder converts more than one Security at the same time, the amount of cash to be paid and the number of shares of Common Stock issuable upon the conversion, if any (and the amount of any cash
in lieu of fractional shares pursuant to Section 4.03) shall be based on the aggregate principal amount of all Securities so converted. 
  
 (e) In the case of any Security which is converted in part only, upon such conversion the Company shall execute and the Trustee shall authenticate and
deliver to the Holder thereof, without service charge, a new Security or Securities of authorized denominations in an aggregate principal amount equal to the, and in exchange for, unconverted portion of the principal amount of such Security. A
Security may be converted in part, but only if the principal amount of such part is an integral multiple of $1,000 and the principal amount of such Security to remain outstanding after such conversion is equal to $1,000 or any integral multiple of
$1,000 in excess thereof. 
  
 (f) Upon the Company’s
determination that a Holder is or will be entitled to convert their Securities into shares of Common Stock pursuant to this Article 4, the Company will promptly after making such determination issue a press release and use its reasonable efforts to
post such information on the Company’s website or otherwise publicly disclose such information. 
  
 Section 4.03. Fractional Shares. 
  
 The Company will not issue fractional shares of Common Stock 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 that 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. In lieu of any fractional shares, the Company will pay an amount in cash for the current market value of the fractional shares. The current market value of a fractional share shall be determined (calculated to the nearest 1/100th of a
share) by multiplying the Closing Price of the Common Stock on the Conversion Date by such fractional share and rounding the product to the nearest whole cent. 
  

Section 4.04. Taxes On Conversion. 
  
 If a Holder converts a Security, the Holder shall pay any transfer, stamp or similar taxes or duties related to the issue or delivery of shares of Common
Stock upon such conversion. In addition, 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 certificate
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 regulation. 
  
 Section 4.05. Company To Provide Stock. 
  
 (a) 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 into shares of Common Stock. 
  

 30 








 (b) 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 nonassessable and shall be free from preemptive or similar rights and free of any lien or adverse claim as the result of any action by the Company. 
  
 (c) 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 the Nasdaq National Market, or each national securities exchange
or over the counter market or such other market on which the Common Stock is then listed or quoted. 
  
 Section 4.06. Adjustment Of Conversion Rate. 
  
 (a) The Conversion Rate shall be adjusted from time to time by the Company as follows: 
  
 (1) If the Company shall pay a dividend or make a distribution to all holders of outstanding Common Stock in
shares of Common Stock, the Conversion Rate in effect immediately prior to the record date for the determination of shareholders entitled to receive such dividend or other distribution shall be increased so that the same shall equal the rate
determined by multiplying the Conversion Rate in effect immediately prior to such record date by a fraction of which the numerator of shall be the sum of the number of shares of Common Stock outstanding at the close of business on such record date
plus the total number of shares of Common Stock constituting such dividend or other distribution and of which the denominator shall be the number of shares of Common Stock outstanding at the close of business on such record date. Such adjustment
shall be made successively whenever any such dividend or distribution is made and shall become effective immediately after such record date. For the purpose of this clause (1), the number of shares of Common Stock at any time outstanding shall not
include shares held in the treasury of the Company. The Company will not pay any dividend or make any distribution on Common Stock held in the treasury of the Company. If any dividend or distribution of the type described in this clause is declared
but not so paid or made, the Conversion Rate shall again be adjusted to the Conversion Rate that would then be in effect if such dividend or distribution had not been declared. 
  
 (2) If the Company shall subdivide its outstanding Common Stock into a greater number of shares, or combine
its outstanding Common Stock into a smaller number of shares, the Conversion Rate in effect immediately prior to the day upon which such subdivision or combination becomes effective shall be, in the case of a subdivision of Common Stock,
proportionately increased and, in the case of a combination of Common Stock, proportionately reduced. Such adjustment shall be made successively whenever any such subdivision or combination of the Common Stock occurs and shall become effective
immediately after the date upon which such subdivision or combination becomes effective. 
  
 (3) If the Company shall issue rights or warrants to all holders of its outstanding Common Stock entitling them (for a period expiring
within 45 days after such issuance) to subscribe for or purchase shares of Common Stock (or securities convertible into Common Stock) at a price per share (or having a conversion price per share) less than the Current Market Price per share of
Common Stock (as determined in accordance with clause (9) of this Section 4.06(a)) on the record date for the determination of shareholders entitled to receive such rights or warrants, 
  

 31 








 the Conversion Rate in effect immediately prior thereto shall be adjusted so that the same shall equal
the rate determined by multiplying the Conversion Rate in effect immediately prior to such record date by a fraction of which the numerator shall be the number of shares of Common Stock outstanding at the close of business on such record date plus
the number of additional shares of Common Stock offered (or into which the convertible securities so offered are convertible) and of which the denominator shall be the number of shares of Common Stock outstanding at the close of business on such
record date plus the number of shares which the aggregate offering price of the total number of shares of Common Stock so offered for subscription or purchase (or the aggregate conversion price of the convertible securities so offered for
subscription or purchase, which shall be determined by multiplying the number of shares of Common Stock issuable upon conversion of such convertible securities by the conversion price per share of Common Stock pursuant to the terms of such
convertible securities) would purchase at the Current Market Price per share of Common Stock on such record date. Such adjustment shall be made successively whenever any such rights or warrants are issued, and shall become effective immediately
after such record date. To the extent that shares of Common Stock (or securities convertible into Common Stock) are not delivered after the expiration of such rights or warrants, the Conversion Rate shall be readjusted to the Conversion Rate that
would then be in effect had the adjustments made upon the issuance of such rights or warrants been made on the basis of delivery of only the number of Common Shares actually delivered. If such rights or warrants are not so issued, the Conversion
Rate shall again be adjusted to be the Conversion Rate that would then be in effect if the record date for the determination of shareholders entitled to receive such rights or warrants had not been fixed. In determining whether any rights or
warrants entitle the shareholders to subscribe for or purchase shares of Common Stock at a price less than the Current Market Price per share of Common Stock and in determining the aggregate offering price of the total number of shares of Common
Stock so offered, there shall be taken into account any consideration received by the Company for such rights or warrants and any amount payable on exercise or conversion thereof, the value of such consideration, if other than cash, to be determined
by the Board of Directors. 
  
 (4) If the Company
shall make a dividend or other distribution to all holders of its Common Stock of Capital Stock, other than Common Stock, or evidences of indebtedness or other assets of the Company (excluding (x) any issuance of rights or warrants for which an
adjustment was made pursuant to Section 4.06(a)(3), and (y) any dividend or distribution paid exclusively in cash for which an adjustment was made pursuant to Section 4.06(a)(6)) (the “Distributed Securities”), then in each
such case (unless the Company distributes such Distributed Securities for distribution to the Holders of Securities on such dividend or distribution date (as if each Holder had converted such Security into Common Stock immediately prior to the
record date with respect to such distribution) the Conversion Rate in effect immediately prior to the record date fixed for the determination of shareholders entitled to receive such dividend or distribution shall be adjusted so that the same shall
equal the rate determined by multiplying the Conversion Rate in effect immediately prior to such record date by a fraction of which the numerator shall be the Current Market Price per share of the Common Stock on such record date and of which the
denominator shall be Current Market Price per share on such record date less the fair market value (as determined by the Board of Directors, whose determination shall be conclusive evidence of such fair market value and which shall be evidenced by
an Officers’ Certificate delivered to the Trustee) on such record date of the portion of the Distributed Securities so distributed applicable to one share of Common Stock (determined on the basis of the number of shares of Common Stock
outstanding at the close of business on such record date). Such adjustment shall be made successively whenever any such distribution is made and shall become effective immediately after the record date for the determination of shareholders entitled
to receive such distribution. In the event that such dividend or distribution is not so paid or made, the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in effect if such dividend or distribution had not been
declared. 
  

 32 








 If the then fair market value (as so determined) of the portion of the Distributed
Securities so distributed applicable to one share of Common Stock is equal to or greater than the Current Market Price per share of the Common Stock on such record date, in lieu of the foregoing adjustment, adequate provision shall be made so that
each holder of a Security shall have the right to receive upon conversion the amount of Distributed Securities so distributed that such Holder would have received had such Holder converted each Security on such record date. If the Board of Directors
determines the fair market value of any distribution for purposes of this Section 4.06(a)(4) by reference to the actual or when issued trading market for any securities, it must in doing so consider the prices in such market over the same
period used in computing the Current Market Price of the Common Stock. 
  
 Notwithstanding the foregoing, if the securities distributed by the Company to all holders of its Common Stock consist of Capital Stock of, or similar equity interests in, a Subsidiary or other business unit of the
Company (the “Spinoff Securities”), the Conversion Rate shall be adjusted, unless the Company makes an equivalent distribution to the Holders of the Securities, so that the same shall be equal to the rate determined by multiplying the
Conversion Rate in effect on the record date fixed for the determination of shareholders entitled to receive such distribution by a fraction, the numerator of which shall be the sum of (A) the average Closing Price of one share of Common Stock
over the ten consecutive Trading Day period (the “Spinoff Valuation Period”) commencing on and including the fifth Trading Day after the date on which ex-dividend trading commences for such distribution on the Nasdaq National Market or
such other U.S. national or regional exchange or market on which the Common Stock is then listed or quoted and (B) the product of (i) the average Closing Price over the Spinoff Valuation Period of the Spinoff Securities multiplied by
(ii) the number of Spinoff Securities distributed in respect of one share of Common Stock and the denominator of which shall be the average Closing Price of one share of Common Stock over the Spinoff Valuation Period, such adjustment to become
effective immediately prior to the opening of business on the fifteenth Trading Day after the date on which ex-dividend trading commences; provided, however, that the Company may in lieu of the foregoing adjustment elect to make adequate provision
so that each Holder of Securities shall have the right to receive upon conversion thereof the amount of such Spinoff Securities that such Holder of Securities would have received if such Securities had been converted on the record date with respect
to such distribution. 
  
 (5) With respect to any
rights or warrants (the “Rights”) that may be issued or distributed pursuant to any rights plan that the Company implements after the date of this Indenture (each a “Rights Plan”), in lieu of any adjustment required by any other
provision of this Section 4.06 upon conversion of the Securities into Common Stock, to the extent that such Rights Plan is in effect upon such conversion, the Holders of Securities will receive, with respect to the shares of Common Stock issued
upon conversion, the Rights described therein (whether or not the Rights have separated from the Common Stock at the time of conversion), subject to the limitations set forth in and in accordance with any such Rights Plan; provided that if, at the
time of conversion, however, the Rights have separated from the shares of Common Stock in accordance with the provisions of the Rights Plan so that Holders would not be entitled to receive any rights in respect of the shares of Common Stock issuable
upon conversion of the Securities as a result of the timing of the Conversion Date, the Conversion Rate will be adjusted as if the Company distributed to all holders of Common Stock Distributed Securities as provided in the first paragraph of clause
(4) of this Section 4.06(a), subject to appropriate readjustment in the event of the expiration, termination, repurchase or redemption of the Rights. Any distribution of 
  

 33 








 rights or warrants pursuant to a Rights Plan complying with the requirements set forth in the immediately
preceding sentence of this paragraph shall not constitute a distribution of rights or warrants pursuant to this Section 4.06(a). Other than as specified in this clause (5) of this Section 4.06(a), there will not be any adjustment to
the Conversion Rate as the result of the issuance of any Rights, the distribution of separate certificates representing such Rights, the exercise or redemption of such Rights in accordance with any Rights Plan or the termination or invalidation of
any Rights. 
  
 (6) If the Company shall, by
dividend or otherwise, at any time distribute (a “Triggering Distribution”) to all holders of its Common Stock a payment consisting exclusively of cash (excluding any dividend or distribution in connection with the liquidation, dissolution
or winding up of the Company, whether voluntary or involuntary) the Conversion Rate shall be increased so that the same shall equal the rate determined by multiplying such Conversion Rate in effect immediately prior to the close of business on the
record date for such Triggering Distribution (a “Determination Date”) by a fraction of which the numerator shall be such Current Market Price per share of the Common Stock on the Determination Date and the denominator of which shall be the
Current Market Price per share of the Common Stock on the Determination Date less the amount of such cash dividend or distribution applicable to one share of Common Stock (determined on the basis of the number of shares of Common Stock outstanding
at the close of business on the Determination Date), such increase to become effective immediately prior to the opening of business on the day following the date on which the Triggering Distribution is paid. If the amount of cash dividend or
distribution applicable to one share of Common Stock is equal to or greater than the Current Market Price per share of the Common Stock on the Determination Date, in lieu of the foregoing adjustment, adequate provision shall be made so that each
Holder of a Security shall have the right to receive upon conversion the amount of cash so distributed that such Holder would have received had such Holder converted each Security on such Determination Date. In the event that such dividend or
distribution is not so paid or made, the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in effect if such divided or distribution had not been declared. 
  
 (7) If any tender offer made by the Company or any of its
Subsidiaries for all or any portion of Common Stock shall expire, then, if the tender offer shall require the payment to shareholders of consideration per share of Common Stock having a fair market value (determined as provided below) that exceeds
the Closing Price per share of Common Stock on the Trading Day next succeeding the last date (the “Expiration Date”) tenders could have been made pursuant to such tender offer (as it may be amended) (the last time at which such tenders
could have been made on the Expiration Date is hereinafter sometimes called the “Expiration Time”), the Conversion Rate shall be increased so that the same shall equal the rate determined by multiplying the Conversion Rate in effect
immediately prior to the close of business on the Expiration Date by a fraction of which the numerator shall be the sum of (A) the fair market value of the aggregate consideration (the fair market value as determined by the Board of Directors,
whose determination shall be conclusive evidence of such fair market value and which shall be evidenced by an Officers Certificate delivered to the Trustee) payable to shareholders based on the acceptance (up to any maximum specified in the terms of
the tender offer) of all shares validly tendered and not withdrawn as of the Expiration Time (the shares deemed so accepted, up to any such maximum, being referred to as the “Purchased Shares”) and (B) the product of the number of
shares of Common Stock outstanding (less any Purchased Shares and excluding any shares held in the treasury of the Company) at the Expiration Time and the Closing Price per share of Common Stock on the Trading Day next succeeding the Expiration Date
and the denominator of which shall be the product of the number of shares of Common Stock outstanding (including Purchased Shares but excluding any shares held in the treasury of the Company) at the Expiration 
  

 34 








 Time multiplied by the Closing Price per share of the Common Stock on the Trading Day next succeeding the
Expiration Date, such increase to become effective immediately prior to the opening of business on the day following the Expiration Date. In the event that the Company is obligated to purchase shares pursuant to any such tender offer, but the
Company is permanently prevented by applicable law from effecting any or all such purchases or any or all such purchases are rescinded, the Conversion Rate shall again be adjusted to be the Conversion Rate which would have been in effect based upon
the number of shares actually purchased, if any. If the application of this clause (7) of Section 4.06(a) to any tender offer would result in a decrease in the Conversion Rate, no adjustment shall be made for such tender offer under this
clause (7). 
  
 (8) For purposes of this
Section 4.06, the term “tender offer” shall mean and include both tender offers and exchange offers, all references to “purchases” of shares in tender offers (and all similar references) shall mean and include both the
purchase of shares in tender offers and the acquisition of shares pursuant to exchange offers, and all references to “tendered shares” (and all similar references) shall mean and include shares tendered in both tender offers and exchange
offers. 
  
 (9) For the purpose of any
computation under this Section 4.06(a), the current market price (the “Current Market Price”) per share of Common Stock on any date shall be deemed to be the average of the Closing Prices for the 10 consecutive Trading Days ending on
the earlier of (A) the Determination Date or the Expiration Date, as the case may be, with respect to distributions or tender offers under this Section 4.06(a) or (B) the “ex-date” with respect to distributions, issuances or
other events requiring such computation under this Section 4.06. 
  
 (b) In any case in which this Section 4.06 shall require that an adjustment be made following a record date, a Determination Date or Expiration Date, as the case may be, established for the purposes specified in this Section 4.06,
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 4.09) issuing to the Holder of any Security converted after such record date,
Determination Date or Expiration 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 (or other cash, property or
securities, as applicable) issuable upon such conversion only on the basis of the Conversion Rate prior to adjustment; and, in lieu of any cash, property or securities the issuance of which is so deferred, the Company shall issue or cause its
transfer agents to issue due bills or other appropriate evidence prepared by the Company of the right to receive such cash, property or securities. If any distribution in respect of which an adjustment to the Conversion Rate is required to be made
as of the record date, Determination Date or Expiration Date therefore is not thereafter made or paid by the Company for any reason, the Conversion Rate shall be readjusted to the Conversion Rate which would then be in effect if such record date had
not been fixed or such record date, Determination Date or Expiration Date had not occurred. 
  
 (c) For purposes of this Section 4.06, “record date” shall mean, with respect to any dividend, distribution or other transaction or event in which the holders of Common Stock have the right to receive
any cash, securities or other property or in which the Common Stock (or other applicable security) is exchanged or converted into any combination of cash, securities or other property, the date fixed for determination of shareholders entitled to
receive such cash, security or other property (whether or not such date is fixed by the Board of Directors or by statute, contract or otherwise). 
  
 (d) If one or more event occurs requiring an adjustment be made to the Conversion Rate for a particular period, adjustments to the Conversion Rate shall
be determined by the Company’s Board of Directors to reflect the combined impact of such Conversion Rate adjustment events, as set out in this Section 4.06, during such period. 
  

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 (e) Notwithstanding the provisions set forth in Section 4.06(a), in no event shall the total number
of shares of Common Stock issuable upon conversion of a Security exceed 25.4517 per $1,000 principal amount of Securities, subject to proportional adjustment in the same manner as the Conversion Rate as set forth in clauses (1) through
(4) of Section 4.06(a). 
  
 Section 4.07. No
Adjustment. 
  
 (a) No adjustment in the Conversion Rate
shall be required if Holders may participate in the transactions set forth in Section 4.06 above (to the same extent as if the Securities had been converted into Common Stock immediately prior to such transactions) without converting the
Securities held by such Holders. 
  
 (b) No adjustment in the
Conversion Rate shall be required unless such adjustment would require an increase or decrease of at least 1% in the Conversion Rate as last adjusted; provided, however, that any adjustments which would be required to be made but for this
Section 4.07(b) shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Article 4 shall be made to the nearest cent or to the nearest one ten thousandth of a share, as the case may be, with one
half cent and 0.00005 of a share, respectively, being rounded upward. 
  
 (c) No adjustment in the Conversion Rate shall be required for issuances of Common Stock pursuant to a Company plan for reinvestment of dividends or interest or for a change in the par value or a change to no par value of the Common Stock.

  
 (d) To the extent that the Securities become convertible into
the right to receive cash, no adjustment need be made thereafter as to the cash. 
  
 Section 4.08. Notice Of Adjustment. 
  
 Whenever the Conversion Rate or conversion privilege is required to be adjusted pursuant to this Indenture, the Company shall promptly mail to Holders 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. Failure to mail such notice or any defect therein shall not affect the validity of any such adjustment. Unless and until the Trustee shall
receive an Officers’ Certificate setting forth an adjustment of the Conversion Rate, the Trustee may assume without inquiry that the Conversion Rate has not been adjusted and that the last Conversion Rate of which it has knowledge remains in
effect. 
  
 Section 4.09. Notice Of Certain
Transactions. 
  
 In the event that there is a dissolution or
liquidation of the Company, the Company shall mail to Holders and file with the Trustee a notice stating the proposed effective date. The Company shall mail such notice at least 20 days before such proposed effective date. Failure to mail such
notice or any defect therein shall not affect the validity of any transaction referred to in this Section 4.09. 
  
 Section 4.10. Effect Of Recapitalization, Reclassification, Consolidation, Merger or Sale. 
  
 (a) If any of following events occur (each, a “Business
Combination”), namely: 
  
 (1) any
recapitalization, reclassification or change of the 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 subdivision or a combination, 
  

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 (2) a consolidation, merger or binding share exchange of the Company with another Person,
or 
  
 (3) a sale, conveyance or lease to another
corporation of all or substantially all of the property and assets of the Company, 
  
 in each case as a result of which holders of Common Stock are entitled to receive stock, other securities, other property or assets (including cash or any combination thereof) with respect to or in exchange for Common Stock, the Company or
the successor or purchasing corporation, as the case may be, shall execute with the Trustee a supplemental indenture (which shall comply with the TIA as in force at the date of execution of such supplemental indenture if such supplemental indenture
is then required to so comply) providing that the Holders of the Securities then outstanding will be entitled thereafter to convert such Securities into the kind and amount of shares of stock, other securities or other property or assets (including
cash or any combination thereof) which they would have owned or been entitled to receive upon such Business Combination had such Securities been converted into Common Stock immediately prior to such Business Combination; provided, that Holders shall
not be entitled to receive Additional Change of Control Shares if such Holder does not convert its Securities “in connection with” the relevant Fundamental Change. In the event holders of Common Stock have the opportunity to elect the form
of consideration to be received in such Business Combination, the Company shall make adequate provision whereby the Holders of the Securities shall have a reasonable opportunity to determine the form of consideration into which all of the
Securities, treated as a single class, shall be convertible from and after the effective date of such Business Combination. Such determination shall be (i) based on the weighted average of elections made by Holders of the Securities who
participate in such determination, (ii) subject to any limitations to which all of the holders of the Common Stock are subject, such as pro-rata reductions applicable to any portion of the consideration payable in such Business Combination and
(iii) conducted in such a manner as to be completed by the date which is the earliest of (a) the deadline for elections to be made by stockholders of the Company, and (b) two Trading Days prior to the anticipated effective date of the
Business Combination. The Company shall provide notice of the opportunity to determine the form of such consideration, as well as notice of the determination made by Holders of the Securities (and the weighted average of elections), by issuing a
press release or providing other appropriate notice, and by providing a copy of such notice to the Trustee. In the event the effective date of the Business Combination is delayed beyond the initially anticipated effective date, Holders of the
Securities shall be given the opportunity to make subsequent similar determinations in regard to such delayed effective date. Such supplemental indenture shall provide for adjustments of the Conversion Rate and other appropriate numerical thresholds
which shall be as nearly equivalent as may be practicable to the adjustments of the Conversion Rate provided for in this Article 4. If, in the case of any such Business Combination, the stock or other securities and assets receivable thereupon by a
holder of shares of Common Stock includes shares of stock or other securities and assets of a corporation other than the successor or purchasing corporation, as the case may be, in such Business Combination, then such supplemental indenture shall
also be executed by such other corporation and shall contain such additional provisions to protect the interests of the Holders of the Securities as the Board of Directors shall reasonably consider necessary by reason of the foregoing, including to
the extent practicable the provisions providing for the repurchase rights set forth in Section 3.01 hereof. 
  
 The Company shall cause notice of the execution of such supplemental indenture to be mailed to each Holder, at the address of such Holder as it appears on
the Register, within 20 days after execution thereof. Failure to deliver such notice shall not affect the legality or validity of such supplemental indenture. 
  

The above provisions of this Section 4.10 shall similarly apply to successive Business Combinations. 
  

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 The Company shall not become a party to any Business Combination unless its terms are consistent in all
material respects with the provisions of this Section 4.10. 
  
 None of the provisions of this Section 4.10 shall affect the right of a Holder of Securities to convert its Securities into Common Stock prior to the effective date of a Business Combination. 
  
 If this Section 4.10(a) applies to any event or occurrence,
Section 4.06 hereof shall not apply. 
  
 (b) In the event the
Company shall execute a supplemental indenture pursuant to this Section 4.10, the Company shall promptly file with the Trustee (1) an Officers’ Certificate briefly stating the reasons therefore, the kind or amount of shares of stock
or other securities or property (including cash) receivable by Holders of the Securities upon the conversion of their Securities after any such reclassification, change, combination, consolidation, merger, sale or conveyance, any adjustment to be
made with respect thereto and that all conditions precedent have been complied with and (2) an Opinion of Counsel that all conditions precedent thereto and hereunder have been complied with, and shall promptly mail notice thereof to all
Holders. Failure to mail such notice or any defect therein shall not affect the validity of such transaction and such supplemental indenture. 
  
 Section 4.11. Trustee’s Disclaimer. 
  
 (a) The Trustee shall have no duty to determine when an adjustment under this Article 4 should be made, how it should be made or what such adjustment
should be, but may accept as conclusive evidence of that fact or the correctness of any such adjustment, and shall be protected in relying upon, an Officers’ Certificate and Opinion of Counsel, including the Officers’ Certificate with
respect thereto which the Company is obligated to file with the Trustee pursuant to Section 4.08. The Trustee 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 4. 
  
 (b) The Trustee shall not be under any responsibility to determine the correctness of any provisions contained in any supplemental indenture executed
pursuant to Section 4.10, but may accept as conclusive evidence of the correctness thereof, and shall be fully protected in relying upon, the Officers’ Certificate and Opinion of Counsel, with respect thereto which the Company is obligated
to file with the Trustee pursuant to Section 4.10. 
  
 Section 4.12. Voluntary Increase. 
  
 The
Company from time to time may increase the Conversion Rate, to the extent permitted by law and subject to stockholder approval requirements, if any, of any relevant national securities exchange or automated dealer quotation system, by any amount for
any period of time if the period is at least 20 days, the increase is irrevocable during the period and the Board of Directors determines that such increase would be in the best interests of the Company or to avoid or diminish income tax to holders
of shares of Common Stock in connection with a dividend or distribution of stock or similar event, and the Company provides 15 days’ prior written notice of any increase in the Conversion Rate to the Trustee and the Holders. 
  
 Notwithstanding the foregoing paragraph, in no event will the total number of
shares of Common Stock issuable upon conversion of a Security exceed 25.4517 per $1,000 principal amount, subject to proportional adjustment in the same manner as the Conversion Rate as set forth in clauses (1) through (4) of
Section 4.06(a) hereof. 
  

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 Section 4.13. Payment of Cash in Lieu of Common Stock. 
  
 (a) Rather than receiving some or all of the shares of Common Stock
otherwise issuable upon notice of conversion of any Securities, Holders surrendering Securities for conversion shall receive for each $1,000 principal amount of Securities surrendered: (A) cash in an amount equal to the lesser of
(1) $1,000 and (2) the Conversion Value; and (B) if the Conversion Value is greater than $1,000, a number of shares of the Company’s Common Stock equal to the sum of the Daily Share Amounts for each of the ten consecutive Trading
Days in the Conversion Reference Period (the “Remaining Shares”), subject to the Company’s right to deliver cash in lieu of all or a portion of such shares as set forth in Section 4.13(b). The Company will deliver such cash and
any shares of Common Stock, together with any cash payable for fractional shares, to such Holder in accordance with Section 4.02(a). 
  
 (b) The Company may elect to pay cash to the Holders of Securities surrendered for conversion in lieu of all or a portion of the Common Stock otherwise
issuable pursuant to Section 4.13(a). In such event, on any day prior to the first Trading Day of the applicable Conversion Reference Period, the Company will specify a percentage of the Daily Share Amount that will be settled in cash (the
“Cash Percentage”) and the amount of cash that the Company will pay in respect of each Trading Day in the applicable Conversion Reference Period will equal the product of: (1) the Cash Percentage, (2) the Daily Share Amount for
such Trading Day and (3) the Closing Price of our Common Stock for such Trading Day (provided that after the consummation of a Change of Control in which the consideration is comprised entirely of cash, the amount used in this clause
(3) will be the cash price per share received by holders of our Common Stock in such Change of Control). The number of shares that the Company shall deliver in respect of each Trading Day in the applicable Conversion Reference Period will be a
percentage of the Daily Share Amount equal to 100% minus the Cash Percentage. Upon making a determination that a percentage of the Daily Share Amount will be settled in cash, the Company shall promptly issue a press release and disclose such
information on its website prior to the first Trading Day of the applicable Conversion Reference Period. If the Company does not specify a Cash Percentage by the start of the applicable Conversion Reference Period, the Company shall settle 100% of
the Daily Share Amount for each Trading Day in the applicable Conversion Reference Period with shares of Common Stock; provided, however, that the Company shall pay cash in lieu of fractional shares otherwise issuable upon conversion of Securities.

  
 (c) For the purposes of Sections 4.13(a) and (b), in the event
that any of Conversion Value, Daily Share Amounts, or Closing Price is not calculable for all portions of the Conversion Reference Period, the Company’s Board of Directors shall in good faith determine the values necessary to calculate the
Conversion Value, Daily Share Amounts, and Closing Price, as applicable. 
  
 ARTICLE 5 
  
 COVENANTS 
  
 Section 5.01. Payment Of Securities. 
  
 (a) The Company shall promptly make all payments in respect of the
Securities on the dates and in the manner provided in the Securities and this Indenture. A payment of principal or interest or Additional Interest, if any, shall be considered paid on the date it is due if the Paying Agent (other than the Company)
holds by 10:00 a.m., New York City time, on that date money, deposited by or on behalf of the Company sufficient to make the payment. Subject to Section 4.02, accrued and unpaid interest on any Security that is payable (whether or not
punctually paid or duly provided for) on any Interest Payment Date shall be paid to the Person in whose name that Security is registered at the close of business on the Regular Record Date for such interest at the office or agency of the Company
maintained for such 
  

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 purpose. Principal, the Fundamental Change Repurchase Price, and interest and Additional Interest, if any, in each case
if payable, shall be considered paid on the applicable date due if on such date (or, in the case of the Fundamental Change Repurchase Price, on the Business Day following the applicable Fundamental Change Repurchase Date) the Trustee or the Paying
Agent holds, in accordance with this Indenture, money sufficient to pay all such amounts then due. The Company shall, to the fullest extent permitted by law, pay interest in immediately available funds on overdue principal and interest at the annual
rate borne by 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. 
  
 (b) Payment of the
principal of and interest, if any, on the Securities shall be made at the office or agency of the Company maintained for that purpose in the Borough of Manhattan, The City of New York (which shall initially be the Corporate Trust Office of the
Trustee) in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that at the option of the Company payment of interest may be made by check mailed
to the address of the Person entitled thereto as such address appears in the Register; provided further that a Holder will be paid by wire transfer in immediately available funds at the election of such Holder if such Holder has provided wire
transfer instructions to the Trustee at least 10 Business Days prior to the payment date. Any wire transfer instructions received by the Trustee will remain in effect until revoked by the Holder. In the case of a permanent Global Security, interest
payable on any applicable payment date will be paid to the Depositary, with respect to that portion of such permanent Global Security held for its account by Cede & Co. for the purpose of permitting such party to credit the interest
received by it in respect of such permanent Global Security to the accounts of the beneficial owners hereof. 
  
 Section 5.02. SEC and Other Reports. 
  
 (a) The Company shall file all reports and other information and documents which it is required to file with the SEC pursuant to Section 13 or 15(d)
of the Exchange Act, and within 15 days after it files them with the SEC, the Company shall file copies of all such reports, information and other documents with the Trustee; provided that any such reports, information and documents filed with the
SEC pursuant to its Electronic Data Gathering, Analysis and Retrieval system shall be deemed to be filed with the Trustee. 
  
 (b) Delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of such shall not
constitute constructive notice of any information contained therein or determinable from information contained therein, including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely
exclusively on Officers’ Certificates). The Trustee may assume that any reports required to be filed under subsection (a) above have been filed with the SEC and shall have no obligation to verify any such filing. 
  
 Section 5.03. Compliance Certificates. 
  
 The Company shall deliver to the Trustee, within one hundred twenty
(120) days after the end of each fiscal year of the Company (beginning with the fiscal year ending September 30, 2006), an Officers’ Certificate as to the signer’s knowledge of the Company’s compliance with all conditions
and covenants on its part contained in this Indenture and stating whether or not the signer knows of any Default or Event of Default. If such signer knows of such a Default or Event of Default, the Officers’ Certificate shall describe the
Default or Event of Default and the efforts to remedy the same. For the purposes of this Section 5.03, compliance shall be determined without regard to any grace period or requirement of notice provided pursuant to the terms of this Indenture.

  

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 Section 5.04. Further Instruments and Acts. 
  
 Upon request of the Trustee, the Company and the Guarantors 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 5.05. Maintenance Of Corporate Existence. 
  

Subject to Articles 6 and 12 herein, the Company and each Guarantor will do or cause to be done all things necessary to preserve and keep in full force
and effect its corporate existence. 
  
 Section 5.06. Rule
144A Information Requirement. 
  
 Within the period prior to
the expiration of the holding period applicable to sales of the Securities, including any securities in to which Securities are converted or exchanged, under Rule 144(k) under the Securities Act (or any successor provision), the Company covenants
and agrees that it shall, during any period in which it is not subject to Section 13 or 15(d) under the Exchange Act, upon the request of any Holder or beneficial holder of the Securities make available to such Holder or beneficial holder of
Securities or any Common Stock issued upon conversion thereof which continue to be Restricted Securities in connection with any sale thereof and any prospective purchaser of Securities or such Common Stock designated by such Holder or beneficial
holder, the information required pursuant to Rule 144A(d)(4) under the Securities Act and it will take such further action as any Holder or beneficial holder of such Securities or such Common Stock may reasonably request, all to the extent required
from time to time to enable such Holder or beneficial holder to sell its Securities or Common Stock without registration under the Securities Act within the limitation of the exemption provided by Rule 144A, as such Rule may be amended from time to
time. Upon the request of any Holder or any beneficial holder of the Securities or such Common Stock, the Company will deliver to such Holder a written statement as to whether it has complied with such requirement. 
  
 Section 5.07. Stay, Extension And Usury Laws. 
  
 The Company and the Guarantors covenant (to the extent that they may
lawfully do so) that they shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which would prohibit or forgive the Company or a Guarantor from
paying all or any portion of the principal of or accrued but unpaid interest or Additional Interest, if any, on the Securities as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the
performance of this Indenture, and the Company and the Guarantors (to the extent they may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenant that they will not, by resort to any such law, hinder, delay or
impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted. 
  
 Section 5.08. Payment Of Additional Interest. 
  
 If Additional Interest is payable by the Company pursuant to the Registration Rights Agreement, the Company shall deliver to
the Trustee an Officers’ Certificate to that effect within 30 days of such obligation arising stating (i) the amount of such Additional Interest that is payable, (ii) the reason why such Additional Interest is payable and
(iii) the date on which such Additional Interest is payable. Unless and until a Trust Officer of the Trustee receives such a certificate, the Trustee may assume without inquiry that no such Additional Interest is payable. If the Company has
paid Additional Interest directly to the Persons entitled to such Additional Interest, the Company shall deliver to the Trustee a certificate within 30 days of such payment setting forth the particulars of such payment. 
  

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 Section 5.09. Maintenance of Office or Agency. 
  
 The Company will maintain an office or agency of the Trustee, Registrar and
Paying Agent where Securities may be presented or surrendered for payment, where Securities may be surrendered for registration of transfer or purchase 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 shall initially be one such office or agency for all of the aforesaid purposes. Another such office or agency shall be the one referred to in Section 5.01(b). 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 13.02. 
  
 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. 
  
 Section 5.10.
No Layering of Indebtedness. 
  
 The Company will not
incur, create, issue, assume, guarantee or otherwise become liable for any Indebtedness that is contractually subordinate or junior in right of payment to any Senior Debt of the Company and senior in right of payment to the Securities. No Guarantor
will incur, create, issue, assume, guarantee or otherwise become liable for any Indebtedness that is contractually subordinate or junior in right of payment to any Senior Debt of such Guarantor and senior in right of payment to such Guarantor’s
Guarantee. No such Indebtedness will be considered to be senior by virtue of being secured on a first or junior priority basis. 
  
 Section 5.11. Note Guarantees. 
  
 Subject to Section 12.05 hereof, each Domestic Subsidiary of the Company shall jointly and severally guarantee the Company’s obligations under
the Securities on a senior subordinated basis. If the Company or any of its Domestic Subsidiaries acquires or creates another Domestic Subsidiary after the date of this Indenture, then the Company will (1) cause that newly acquired or created
Domestic Subsidiary to execute a Note Guarantee pursuant to a supplemental indenture in the form of Exhibit B within 10 Business Days of the date on which it was acquired or created and (2) deliver an Opinion of Counsel to the Trustee within 10
Business Days of the date on which the Domestic Subsidiary was acquired or created to the effect that such supplemental indenture has been duly authorized, executed and delivered by that Domestic Subsidiary and constitutes a valid and binding
agreement of that Domestic Subsidiary, enforceable in accordance with its terms. The form of such Note Guarantee is attached as Exhibit C hereto. The Note Guarantee of such Domestic Subsidiary may be released as otherwise provided in this Indenture.

  

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 ARTICLE 6 
  

CONSOLIDATION; MERGER; CONVEYANCE; TRANSFER OR LEASE 
  
 Section 6.01. Company May Consolidate, Etc., Only On Certain Terms. 
  
 (a) The Company may not, without the consent of the Holders, consolidate with, merge into or transfer or lease all or
substantially all of the property and assets of the Company and its Subsidiaries, taken as a whole, to another Person unless: 
  
 (1) either (A) the Company shall be the resulting or surviving corporation or (B) the Person (if other than the Company) formed
by such consolidation or into which the Company is merged, or the Person which acquires by transfer or lease all or substantially all of the properties and assets of the Company, shall (i) be a corporation incorporated and existing under the
laws of the United States of America or any State thereof or the District of Columbia and (ii) expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory to the Trustee, the obligations of
the Company under the Securities and this Indenture and the performance or observance of every covenant and provision of this Indenture and the Securities required on the part of the Company to be performed or observed and the conversion rights
shall be provided for in accordance with Article 4, by supplemental indenture satisfactory in form to the Trustee, executed and delivered to the Trustee, by the Person (if other than the Company) formed by such consolidation or into which the
Company shall have been merged or by the Person which shall have acquired the Company’s assets; 
  
 (2) after giving effect to such transaction, no Event of Default, and no event which, after notice or lapse of time or both, would become
an Event of Default, shall have occurred and be continuing; and 
  
 (3) if the Company will not be the resulting or surviving corporation, the Company shall have, at or prior to the effective date of such consolidation, merger or transfer, delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that such consolidation, merger or transfer complies with this Article and, if a supplemental indenture is required in connection with such transaction, such supplemental indenture complies with
this Article, and that all conditions precedent herein provided for relating to such transaction have been complied with. 
  
 (b) For purposes of the foregoing, the transfer (by lease, assignment, sale or otherwise) of the properties and assets of one or more Subsidiaries of the
Company (other than to the Company or another Subsidiary of the Company), which, if such assets were owned by the Company, would constitute all or substantially all of the properties and assets of the Company and its Subsidiaries, taken as a whole,
shall be deemed to be the transfer of all or substantially all of the properties and assets of the Company. 
  
 Section 6.02. Successor Substituted. 
  
 Upon any consolidation of the Company with, or merger of the Company into, any other Person or any conveyance, transfer or lease of all or substantially
all of the properties and assets of the Company and its Subsidiaries, taken as a whole, in accordance with Section 6.01, the successor Person formed by such consolidation or into which the Company is merged or to which such conveyance, transfer
or lease is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor Person had been named as the Company herein, and thereafter, except in
the case of a lease, and except for obligations the predecessor Person may have under a supplemental indenture, the predecessor Person shall be relieved of all obligations and covenants under this Indenture and the Securities. 
  

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 ARTICLE 7 
  

DEFAULT AND REMEDIES 
  
 Section 7.01. Events Of Default. 
  
 (a) An “Event of Default” shall occur if: 
  
 (1) the Company shall fail to pay when due the Principal or any Fundamental Change Repurchase Price of any Security, including any
Additional Change of Control Shares, when the same becomes due and payable whether at the Final Maturity Date, upon repurchase, acceleration or otherwise, and whether or not prohibited by Article 11 of the Indenture; or 
  
 (2) the Company shall fail to pay an installment of cash
interest or Additional Interest, if any, on any of the Securities, which failure continues for 30 days after the date when due, and whether or not prohibited by Article 11 of the Indenture; or 
  
 (3) the Company shall fail to deliver when due all cash and
shares of Common Stock deliverable upon conversion of the Securities, which failure continues for 15 days; or 
  
 (4) the Company or any Guarantor shall fail to perform or observe any other term, covenant or agreement contained in the Securities or
this Indenture for a period of 60 days after receipt by the Company of a Notice of Default specifying such failure; or 
  
 (5) there is a default under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or
evidenced any Indebtedness for money borrowed by the Company or any of the Guarantors (or the payment of which is guaranteed by the Company or any of its subsidiaries) whether such Indebtedness or guarantee now exists, or is created after the date
of this Indenture, if that default: 
  
 (A) is caused by a
failure to pay at final Stated Maturity principal of, or interest or premium, if any, on such Indebtedness prior to the expiration of the grace period provided in such Indebtedness on the date of such default (a “Payment Default”); or

  
 (B) results in the acceleration of such
Indebtedness prior to its final Stated Maturity, 
  
 and in each
case the principal amount of any such Indebtedness, together with the principal amount of any other such Indebtedness under which there has been a Payment Default or the maturity of which has been so accelerated, aggregates $10.0 million or more; or

  
 (6) except as permitted herein, any Note
Guarantee of a Guarantor that is a Significant Subsidiary shall be held in any judicial proceeding to be unenforceable or invalid or shall cease for any reason to be in full force and effect or any such Guarantor that is a Significant Subsidiary, or
any Person acting on behalf of any such Guarantor, shall deny or disaffirm its obligations under its Note Guarantee; or 
  

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 (7) the Company or any Guarantor that is a Significant Subsidiary, pursuant to or within
the meaning of any Bankruptcy Law: 
  
 (A)
commences as a debtor a voluntary case or proceeding; or 
  
 (B) consents to the entry of an order for relief against it in an involuntary case or proceeding or the commencement of any case against it; or 
  
 (C) consents to the appointment of a Receiver of it or for all or substantially all of its property; or

  
 (D) makes a general assignment for the
benefit of its creditors; or 
  
 (E) files a
petition in bankruptcy or answer or consent seeking reorganization or relief; or 
  
 (F) consents to the filing of such a petition or the appointment of or taking possession by a Receiver; or 
  
 (8) a court of competent jurisdiction enters an order or
decree under any Bankruptcy Law that: 
  
 (A)
grants relief against the Company or any Guarantor that is a Significant Subsidiary in an involuntary case or proceeding or adjudicates the Company or any Guarantor that is a Significant Subsidiary insolvent or bankrupt; or 
  
 (B) appoints a Receiver of the Company or any Guarantor that
is a Significant Subsidiary or for all or substantially all of the property of the Company or any Guarantor that is a Significant Subsidiary; or 
  
 (C) orders the winding up or liquidation of the Company or any Guarantor that is a Significant Subsidiary; 
  
 and in each case the order or decree remains unstayed and in
effect for 60 consecutive days. 
  
 (b) Notwithstanding
Section 7.01(a) no Event of Default under clause (4) of Section 7.01(a) shall occur until the Trustee notifies the Company in writing, or the Holders of at least 25% in aggregate principal amount of the Securities then outstanding
notify the Company and the Trustee in writing, of the Default (a “Notice of Default”), and the Company does not cure the Default within the time specified in clause (4) of Section 7.01(a), after receipt of such notice. A notice
given pursuant to this Section 7.01 shall be given by registered or certified mail, must specify the Default, demand that it be remedied and state that the notice is a Notice of Default. When any Default under this Section 7.01 is cured,
it ceases. 
  
 (c) The Company will deliver to the Trustee, within
10 Business Days after becoming aware of the occurrence of a Default or Event of Default, written notice thereof. 
  

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 Section 7.02. Acceleration. 
  
 If an Event of Default (other than an Event of Default specified in clause (7) or (8) of Section 7.01(a))
occurs and is continuing with respect to the Company or any Guarantor, the Trustee may, by notice to the Company, or the Holders of at least 25% in aggregate principal amount of the Securities then outstanding may, by notice to the Company and the
Trustee, declare the principal amount and accrued and unpaid interest, if any, and accrued and unpaid Additional Interest, if any, through the date of declaration on all the Securities to be immediately due and payable. Upon such a declaration, such
principal amount and such accrued and unpaid interest, if any, and such accrued and unpaid Additional Interest, if any, shall be due and payable immediately. If an Event of Default specified in Section 7.01(a)(7) or (8) occurs in respect
of the Company or any Guarantor which is a Significant Subsidiary and is continuing, the principal amount and accrued but unpaid interest, if any, and accrued and unpaid Additional Interest, if any, on all the Securities shall become and be
immediately due and payable without any declaration or other act on the part of the Trustee or any Holders of Securities. The Holders of a majority in aggregate 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 the Securities which have become due solely by such declaration of acceleration, have been cured or waived; (b) to
the extent the payment of such interest is lawful, interest (calculated at the rate per annum borne by the Securities) on overdue installments of interest and overdue principal, which has become due otherwise than by such declaration of
acceleration, has been paid; and (c) the rescission would not conflict with any judgment or decree of a court of competent jurisdiction. No such rescission shall affect any subsequent Default or impair any right consequent thereto. 

 
 Section 7.03. Other Remedies. 
  
 (a) If an Event of Default occurs and is continuing, the Trustee may, but
shall not be obligated to, pursue any available remedy by proceeding at law or in equity to collect payment of the principal amount and accrued and unpaid interest, if any, and accrued and unpaid Additional Interest, if any, on the Securities or to
enforce the performance of any provision of the Securities or this Indenture. 
  
 (b) The Trustee may maintain a proceeding even if it does not possess any of the Securities or does not produce any of them in the proceeding. A delay or omission by the Trustee or any Holder in exercising any right
or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy is exclusive of any other remedy. All available remedies are cumulative to the extent
permitted by applicable law. 
  
 Section 7.04. Waiver Of
Defaults And Events Of Default. 
  
 Subject to Sections 7.07
and 10.02, the Holders of a majority in aggregate principal amount of the Securities then outstanding by notice to the Trustee may waive an existing Default or Event of Default and its consequences, except an uncured Default or Event of Default in
the payment of the principal of, premium, if any, or any accrued but unpaid interest on any Security, an uncured failure by the Company to convert any Securities into Common Stock or any Default or Event of Default in respect of any provision of
this Indenture or the Securities which, under Section 10.02, cannot be modified or amended without the consent of the Holder of each Security affected. When a Default or Event of Default is waived, it is cured and ceases. 
  
 Section 7.05. Control By Majority. 
  
 The Holders of a majority in aggregate principal amount of the Securities
then outstanding may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or 
  

 46 








 exercising any trust or power conferred on it. However, the Trustee may refuse to follow any direction that conflicts
with law or this Indenture, that the Trustee determines may be unduly prejudicial to the rights of another Holder or the Trustee, or that may involve the Trustee in personal liability unless the Trustee is offered indemnity satisfactory to it;
provided, however, that the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction. 
  
 Section 7.06. Limitations On Suits. 
  
 (a) A Holder may not pursue any remedy with respect to this Indenture or the Securities (except actions for payment of overdue principal, premium, if any,
or interest or for the conversion of the Securities pursuant to Article 4) unless: 
  
 (1) the Holder gives to the Trustee written notice of a continuing Event of Default; 
  
 (2) the Holders of at least 25% in aggregate principal
amount of the then outstanding Securities make a written request to the Trustee to pursue the remedy; 
  
 (3) such Holder or Holders offer to the Trustee reasonable indemnity against any loss, liability or expense; 
  
 (4) the Trustee does not comply with the request within 60
days after receipt of the request and the offer of indemnity; and 
  
 (5) no direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority in aggregate principal amount of the Securities then outstanding.

  
 (b) No Holder of a Security shall have any right under any
provision of this Indenture or the Securities to affect, disturb, or prejudice the rights of another Holder of a Security or to obtain a preference or priority over another Holder of a Security. 
  
 Section 7.07. Rights Of Holders To Receive Payment And To
Convert. 
  
 Notwithstanding any other provision of this
Indenture, the right of any Holder of a Security to receive payment of the principal amount, Fundamental Change Repurchase Price, or Additional Change of Control Shares and interest, if any, or Additional Interest, if any, in respect of the
Securities held by such Holder, on or after the respective due dates expressed in the Securities and this Indenture, (whether upon repurchase or otherwise), and to convert such Security in accordance with Article 4, and to bring suit for the
enforcement of any such payment on or after such respective due dates or for the right to convert in accordance with Article 4, is absolute and unconditional and shall not be impaired or affected without the consent of the Holder. 
  
 Section 7.08. Collection Suit By Trustee. 
  
 If an Event of Default described in clause (1) or (2) of
Section 7.01(a) occurs and is continuing, the Trustee may recover judgment in its own name and as trustee of an express trust against the Company or another obligor on the Securities for the whole amount owing with respect to the Securities and
such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel. 
  

 47 








 Section 7.09. Trustee May File Proofs Of Claim. 
  
 The Trustee may file such proofs of claim and 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) and the Holders allowed in any judicial
proceedings relative to the Company (or any other obligor on the Securities), its creditors or its property and shall be entitled and empowered to collect and receive any money or other property payable or deliverable on any such claims and to
distribute the same, and any Receiver in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders,
to pay to the Trustee any amount due to 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 8.07, and to the extent that such
payment of the reasonable compensation, expenses, disbursements and advances in any such proceedings shall be denied for any reason, payment of the same shall be secured by a lien on, and shall be paid out of, any and all distributions, dividends,
money, securities and other property which the Holders may be entitled to receive in such proceedings, whether in liquidation or under any plan of reorganization or arrangement or otherwise. Nothing herein contained shall be deemed to authorize the
Trustee to authorize or consent to, or, on behalf of any Holder, to authorize, accept or adopt any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof, or to authorize the
Trustee to vote in respect of the claim of any Holder in any such proceeding. 
  
 Section 7.10. Priorities. 
  
 (a) If the Trustee collects any money pursuant to this Article 7, it shall pay out the money in the following order: 
  
 (1) First, to the Trustee for amounts due under Section 8.07; 
  
 (2) Second, to Holders for amounts due and unpaid on the Securities for the principal amount, interest, and
Additional Interest, if any, ratably, without preference or priority of any kind, according to such respective amounts due and payable on the Holders’ Securities; and 
  
 (3) Third, the balance, if any, to the Company. 
  
 (b) The Trustee may fix a record date and payment date for any payment to
Holders pursuant to this Section 7.10. 
  
 Section 7.11.
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 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 7.11 does not apply to a suit made by the Trustee, a suit by a Holder pursuant to Section 7.07, or a suit by Holders of more than 10% in aggregate principal amount of the Securities then outstanding.

  

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 ARTICLE 8 
  

TRUSTEE 
  
 Section 8.01. Obligations Of Trustee. 
  
 (a) If an Event of Default has occurred and is continuing, the Trustee shall exercise such of the rights and powers vested in it by this Indenture and use
the same degree of care and skill in its exercise as a prudent person would exercise or use under the circumstances in the conduct of his or her own affairs. 
  
 (b) Except during the continuance of an Event of Default: 
  
 (1) the Trustee need perform only those duties as are specifically set forth in this Indenture and no others; and 
  
 (2) 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 in all material respects or appearing on their face to conform to the
requirements of this Indenture. The Trustee, however, shall examine any certificates and opinions which by any provision hereof are specifically required to be delivered to the Trustee to determine whether or not they conform in all material
respects to the requirements of this Indenture, but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein. 
  
 (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: 
  
 (1) this paragraph does not limit the
effect of Section 8.01(b); 
  
 (2) the
Trustee shall not be liable for any error of judgment made in good faith by a Trust Officer, unless it is proved that the Trustee was negligent in ascertaining the pertinent facts; and 
  
 (3) 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 7.05. 
  
 (d) No provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise of any of
its rights or powers unless the Trustee shall have received adequate indemnity in its opinion against potential costs and liabilities incurred by it relating thereto. 
  
 (e) Every provision of this Indenture that in any way relates to the Trustee is subject to subsections (a), (b),
(c) and (d) of this Section 8.01. 
  
 (f) The
Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law.

  

 49 








 Section 8.02. Rights Of Trustee. 
  
 (a) Subject to Section 8.01: 
  
 (1) The Trustee may rely conclusively on any document
believed by it to be genuine and to have been signed or presented by the proper person. The Trustee need not investigate any fact or matter stated in the document. 
  
 (2) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate or an
Opinion of Counsel, which shall conform to Section 13.04(b). The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such Officers’ Certificate or Opinion. 
  
 (3) The Trustee may act through its agents and shall not be
responsible for the misconduct or negligence of any agent appointed with due care. 
  
 (4) The Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within
its rights or powers. 
  
 (5) The Trustee may
consult with counsel of its selection, and the advice or opinion of such counsel as to matters of law shall be full and complete authorization and protection in respect of any such action taken, omitted or suffered by it hereunder in good faith and
in accordance with the advice or opinion of such counsel. 
  
 (6) The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Holders pursuant to this Indenture, unless such Holders
shall have offered to the Trustee security or indemnity satisfactory to the Trustee against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction. 
  
 (7) The Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Trustee,
in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and
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. 
  
 (8) The Trustee shall not be deemed to have notice of any
Default or Event of Default unless a Trust 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, and such notice references
the Securities and this Indenture. 
  
 (9) The
rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, including,
without limitation as Paying Agent, Registrar and Conversion Agent, and to each agent, custodian and other Person employed to act hereunder. 
  

 50 








 Section 8.03. 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 an Affiliate of the Company with the same rights it would have if it were not Trustee. Any Agent may do the same with like rights. However, the Trustee is subject to Sections 8.10 and
8.11. 
  
 Section 8.04. 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 of the proceeds from the Securities and it shall not be responsible for any statement in the Securities other than its certificate of
authentication. 
  
 Section 8.05. Notice Of Default Or
Events Of Default. 
  
 If a Default or an Event of Default
occurs and is continuing and if it is actually known to the Trustee, the Trustee shall mail to each Holder of a Security notice of all uncured Defaults or Events of Default known to it within 90 days after it occurs or, if later, within 15 days
after it becomes known to the Trustee. However, the Trustee may withhold the notice for a period of 30 days so long as the Trustee in good faith determines that withholding notice is in the interests of Holders of Securities, except in the case of a
Default or an Event of Default in payment of the principal of, or premium, if any, or interest on any Security when due or in the payment of any purchase obligation, or the Company’s failure to convert Securities when obligated to convert them.

  
 Section 8.06. Reports By Trustee To Holders.

  
 (a) If a report is required by TIA Section 313, within
60 days after each September 30, beginning with the September 30 following the date of this Indenture, the Trustee shall mail to each Holder of Securities a brief report dated as of such February 15 that complies with TIA
Section 313(a). If required by TIA Section 313, the Trustee also shall comply with TIA Sections 313(b)(2) and (c). 
  
 (b) A copy of each report at the time of its mailing to Holders of Securities shall be mailed to the Company and, to the extent required by the TIA, filed
by the Company with the SEC, and each stock exchange, if any, on which the Securities are listed. The Company shall notify the Trustee whenever the Securities become listed on any stock exchange or listed or admitted to trading on any quotation
system and any changes in the stock exchanges or quotation systems on which the Securities are listed or admitted to trading and of any delisting thereof. 
  
 Section 8.07. Compensation And Indemnity. 
  
 (a) The Company shall pay to the Trustee from time to time such compensation (as agreed to from time to time by the Company and the Trustee in writing)
for its services (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust). The Company shall reimburse the Trustee upon request for all reasonable disbursements, expenses and
advances incurred or made by it. Such expenses may include the reasonable compensation, disbursements and expenses of the Trustee’s agents and counsel. 
  
 (b) The Company shall indemnify the Trustee or any predecessor Trustee (which for purposes of this Section 8.07 shall include its officers,
directors, employees and agents) for, and hold it harmless against, any and all loss, liability or expense including taxes (other than taxes based upon, measured by or determined by the income of the Trustee), incurred by it in connection with the

  

 51 








 acceptance or administration of its duties under this Indenture or any action or failure to act as authorized or within
the discretion or rights or powers conferred upon the Trustee hereunder including the reasonable costs and expenses of the Trustee and its counsel in defending (including reasonable legal fees and expenses) itself against any claim or liability in
connection with the exercise or performance of any of its powers or duties hereunder. The Trustee shall notify the Company promptly of any claim asserted against the Trustee for which it may seek indemnity. The Company need not pay for any
settlement effected without its prior written consent, which shall not be unreasonably withheld. 
  
 (c) The Company need not reimburse the Trustee for any expense or indemnify it against any loss or liability incurred by it resulting from its gross
negligence, willful misconduct or bad faith as determined by a final judgment by a court of competent jurisdiction.. 
  
 (d) To secure the Company’s payment obligations in this Section 8.07, the Trustee shall have a senior claim to which the Securities are hereby
made subordinate on all money or property held or collected by the Trustee. The obligations of the Company under this Section 8.07 shall survive the satisfaction and discharge of this Indenture or the resignation or removal of the Trustee.

  
 (e) When the Trustee incurs expenses or renders services after
an Event of Default specified in clause (7) or (8) of Section 7.01(a) occurs, the expenses and the compensation for the services are intended to constitute expenses of administration under any Bankruptcy Law. The provisions of this
Section shall survive the termination of this Indenture. 
  
 Section 8.08. Replacement Of Trustee. 
  
 (a) The Trustee may resign by so notifying the Company. The Holders of a majority in aggregate principal amount of the Securities then outstanding may remove the Trustee by so notifying the Trustee and the Company and may, with the
Company’s written consent, appoint a successor Trustee. The Company may remove the Trustee at any time, so long as no Default or Event of Default has occurred and is continuing, and appoint a Successor Trustee in accordance with this
Section 8.08. 
  
 (b) 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 a successor Trustee. The resignation or removal of a Trustee shall not be effective until a successor Trustee shall have delivered the written acceptance
of its appointment as described below. 
  
 (c) If a successor
Trustee does not take office within 45 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company or the Holders of 10% in principal amount of the Securities then outstanding may petition any court of competent
jurisdiction for the appointment of a successor Trustee at the expense of the Company. 
  
 (d) If the Trustee fails to comply with Section 8.10, any Holder may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee. 
  
 (e) A successor Trustee shall deliver a written acceptance of its appointment
to the retiring Trustee and to the Company. Immediately after that, the retiring Trustee shall transfer all property held by it as Trustee to the successor Trustee and be released from its obligations (exclusive of any liabilities that the retiring
Trustee may have incurred while acting as Trustee) hereunder, 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. A
successor Trustee shall mail notice of its succession to each Holder. 
  

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 (f) A retiring Trustee shall not be liable for the acts or omissions of any successor Trustee after its
succession. 
  
 (g) Notwithstanding replacement of the Trustee
pursuant to this Section 8.08, the Company’s obligations under Section 8.07 shall continue for the benefit of the retiring Trustee. 
  
 Section 8.09. Successor Trustee By Merger, Etc. 
  
 If the Trustee consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust business (including the
administration of this Indenture) to, another corporation, the resulting, surviving or transferee corporation, without any further act, shall be the successor Trustee; provided such transferee corporation shall qualify and be eligible under
Section 8.10. Such successor Trustee shall promptly mail notice of its succession to the Company and each Holder. 
  
 Section 8.10. Eligibility; Disqualification. 
  
 The Trustee shall always satisfy the requirements of paragraphs (1), (2) and (5) of TIA Section 310(a). 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. If at any time the Trustee shall cease to satisfy any such requirements, it shall resign immediately in
the manner and with the effect specified in this Article 8. The Trustee shall be subject to the provisions of TIA Section 310(b). Nothing herein shall prevent the Trustee from filing with the SEC the application referred to in the penultimate
paragraph of TIA Section 310(b). 
  
 Section 8.11.
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 9 
  
 SATISFACTION AND DISCHARGE OF INDENTURE 
  
 Section 9.01. Satisfaction And Discharge Of Indenture.

  
 (a) This Indenture shall cease to be of further force and
effect (except as to any surviving rights of conversion, registration of transfer or exchange of Securities herein expressly provided for and except as further provided below), and the Trustee, on demand of and at the expense of the Company, shall
execute proper instruments acknowledging satisfaction and discharge of this Indenture, when either: 
  
 (A) all Securities theretofore authenticated and delivered (other than (i) Securities which have been destroyed, lost or stolen and
which have been replaced or paid as provided in Section 2.07 and (ii) Securities for whose payment money has theretofore been deposited in trust and thereafter repaid to the Company as provided in Section 9.03) have been delivered to
the Trustee for cancellation; or 
  
 (B) all such
Securities not theretofore delivered to the Trustee for cancellation, 
  
 (i) have become due and payable, or 
  

 53 








 (ii) will become due and payable at the Final Maturity Date within one year; 
  
 provided in the case of clause (B), that 
  
 (1) the Company has deposited (or caused a Guarantor to
deposit) with the Trustee, a Paying Agent or a Conversion Agent, if applicable (other than the Company or any of its Affiliates) as trust funds in trust for the benefit of the Holders for the purpose of and in an amount sufficient to pay and
discharge the entire Indebtedness on such Securities, not theretofore delivered to the Trustee for cancellation, for principal and interest to the date of such deposit (in the case of Securities which have become due and payable) or to the Final
Maturity Date or a Fundamental Change Repurchase Date, as the case may be; 
  
 (2) the Company has paid or caused to be paid all other sums payable hereunder by the Company; and 
  
 (3) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions
precedent herein relating to the satisfaction and discharge of this Indenture have been complied with. 
  
 (b) Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company with respect to the conversion privilege and the
Conversion Rate of the Securities pursuant to Article 4, the obligations of the Company to the Trustee under Section 8.07 and, if money shall have been deposited with the Trustee pursuant to clause (2) of Section 9.01(a), the
provisions of Sections 2.03, 2.04, 2.05, 2.06, 2.07, 2.12 and 5.01, Article 4, and this Article 9, shall survive until the Securities have been paid in full. 
  
 Section 9.02. Application Of Trust Money. 
  
 Subject to the provisions of Section 9.03, the Trustee or a Paying Agent shall hold in trust, for the benefit of the Holders, all money deposited
with it pursuant to Section 9.01 and shall apply the deposited money in accordance with this Indenture and the Securities to the payment of the principal of and interest on the Securities. 
  
 Section 9.03. Repayment To Company. 
  
 (a) The Trustee and each Paying Agent shall promptly pay to the Company upon
request any excess money (1) deposited with them pursuant to Section 9.01 and (2) held by them at any time. 
  
 (b) The Trustee and each Paying Agent shall, subject to applicable abandonment property laws, pay to the Company upon request any money held by them for
the payment of principal or interest that remains unclaimed for two years after a right to such money has matured; provided, however, that the Trustee or such Paying Agent, before being required to make any such payment, may at the expense of the
Company cause to be mailed to each Holder entitled to such money notice that such money remains unclaimed and that after a date specified therein, which shall be at least 30 days from the date of such mailing, any unclaimed balance of such money
then remaining will be repaid to the Company. After payment to the Company, Holders entitled to money must look to the Company for payment as general creditors unless an applicable abandoned property law designates another person. 
  

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 Section 9.04. Reinstatement. 
  
 If the Trustee or any Paying Agent is unable to apply any money in accordance with Section 9.02 by reason of any legal
proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the Company’s obligations under this Indenture and the Securities shall be revived
and reinstated as though no deposit had occurred pursuant to Section 9.01 until such time as the Trustee or such Paying Agent is permitted to apply all such money in accordance with Section 9.02; provided, however, that if the Company has
made any payment of the principal of or interest on any Securities because of the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Securities to receive any such payment from the money held by
the Trustee or such Paying Agent. 
  
 ARTICLE 10 

 
 AMENDMENTS; SUPPLEMENTS AND WAIVERS 
  
 Section 10.01. Without Consent Of Holders. 
  
 (a) The Company, the Guarantors and the Trustee may amend or supplement this
Indenture or the Securities or the Note Guarantees without notice to or consent of any Holder of a Security for the purpose of: 
  
 (1) evidencing a successor to the Company or any Guarantor and the assumption by that successor of the Company’s or such
Guarantor’s obligations under this Indenture, the Securities and the Note Guarantees; 
  
 (2) adding to the Company’s or any Guarantor’s covenants for the benefit of the Holders or surrendering any right or power
conferred upon the Company or any Guarantor; 
  
 (3) securing the Company’s and any Guarantor’s obligations in respect of the Securities; 
  
 (4) adding a guarantor of the Securities; 
  
 (5) evidencing and providing for the acceptance of the appointment of a successor trustee in accordance with Article 8; 
  
 (6) complying with the requirements of the SEC in order to
effect or maintain the qualification of this Indenture under the TIA, as contemplated by this Indenture or otherwise; 
  
 (7) providing for conversion rights of Holders if any reclassification or change of Common Stock or any consolidation, merger or sale of
all or substantially all of the Company’s property and assets occurs or otherwise complying with the provisions of this Indenture in the event of a merger, consolidation or transfer of assets (including the provisions of Section 4.11 and
Article 6); 
  
 (8) increasing the Conversion
Rate, provided that the increase will not adversely affect the interests of Holders; 
  

 55 








 (9) curing any ambiguity or inconsistency in this Indenture or correcting or
supplementing any defective provision contained in this Indenture; 
  
 (10) allowing any Guarantor to execute a supplemental indenture and/or Note Guarantee with respect to the Securities; or 
  
 (11) making any change that will not adversely affect the interests of the Holders in any material respect. 
  
 Section 10.02. With Consent Of Holders. 
  
 (a) The Company, the Guarantors and the Trustee may amend or supplement this
Indenture, the Securities and/or the Note Guarantees with the written consent of the Holders of at least a majority in aggregate principal amount of the Securities then outstanding or by the adoption of a resolution at a meeting of Holders by at
least a majority in aggregate principal amount of the Securities represented at the meeting. However, subject to Section 10.04, without the written consent of each Holder affected, an amendment, supplement or waiver may not: 
  
 (1) alter the manner of calculation or rate of accrual of
interest on any Security or change the time of payment of any installment of interest on, or any Additional Interest with respect to, any Security; 
  
 (2) make any of the Securities payable in money or securities other than that stated in the Securities; 
  
 (3) change the stated maturity of any Security; 

 
 (4) reduce the principal amount or Fundamental Change
Repurchase Price (including any Additional Change of Control Shares) payable with respect to any of the Securities, or any Additional Interest, or the amount payable upon purchase pursuant to Article 3, with respect to any Security; 
  
 (5) make any change that adversely affects the rights of a
Holder to convert any of the Securities; 
  
 (6)
make any change that adversely affects the rights of Holders to require the Company to purchase Securities at the option of Holders in any material respect; 
  
 (7) impair the right to institute suit for the enforcement of any payment on or with respect to any Security or with respect to the
conversion of any Security; 
  
 (8) release any
Guarantor from any of its obligations under its Note Guarantee or the Indenture, except upon the consolidation of such Guarantor with, or the merger of such Guarantor into, the Company or another Guarantor, or otherwise in accordance with the terms
of the Indenture; 
  
 (9) change the provisions
in this Indenture that relate to modifying or amending this Indenture or waiving any past Default. 
  

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 (b) Without limiting the provisions of Section 10.02(a) hereof, the Holders of a majority in
aggregate principal amount of the Securities then outstanding may, on behalf of all the Holders of all Securities, (i) waive compliance by the Company or any Guarantor with the restrictive provisions of this Indenture, and (ii) waive any
past Default of Event of Default under this Indenture and its consequences, except an uncured failure to pay when due the principal amount, accrued and unpaid interest, accrued and unpaid Additional Interest, or Fundamental Change Repurchase Price,
if any and as applicable, or to deliver Common Stock as required, with respect to the Securities, or in respect of any provision which under this Indenture cannot be modified or amended without the consent of the Holder of each outstanding Security
affected. 
  
 (c) The Holders of 75% in aggregate principal amount
of the Securities then outstanding is required for any amendment to, or waiver of, the provisions of Article 11 that adversely affects the rights of Holders. 
  
 (d) After an amendment, supplement or waiver under this Section 10.02 becomes effective, the Company shall promptly mail to the Holders affected
thereby a notice briefly describing the amendment, supplement or waiver. Any failure of the Company to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such amendment, supplement or waiver.

  
 Section 10.03. Compliance With Trust Indenture
Act. 
  
 Every amendment to or supplement of this Indenture
or the Securities shall comply with the TIA as in effect at the date of such amendment or supplement. 
  
 Section 10.04. Revocation And Effect Of Consents. 
  
 (a) Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder is a continuing consent by the Holder and every subsequent
Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security, even if notation of the consent is not made on any Security. However, any such Holder or subsequent Holder may revoke the consent as
to its Security or portion of a Security if the Trustee receives the notice of revocation before the date the amendment, supplement or waiver becomes effective. 
  
 (b) After an amendment, supplement or waiver becomes effective, it shall bind every Holder of a Security, unless it makes a
change described in any of clauses (1) through (9) of Section 10.02(a). In the case of an amendment, supplement, or waiver that makes a change described in any of clauses (1) through (9) of Section 10.02(a), the
amendment, supplement or waiver shall bind each Holder of a Security who has consented to it and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security. 
  
 Section 10.05. Notation On Or Exchange Of Securities. 

 
 If an amendment, supplement or waiver changes the terms of a Security,
the Trustee may require the Holder of the Security to deliver it to the Trustee. The Trustee may place an appropriate notation on the Security about the changed terms and return it to the Holder. Alternatively, if the Company or the Trustee so
determines, the Company in exchange for the Security shall issue and the Trustee shall authenticate a new Security that reflects the changed terms, and each Guarantor shall execute a new Note Guarantee with respect to such new Security. 

 

 57 








 Section 10.06. Trustee To Sign Amendments, Etc. 
  
 The Trustee shall sign any amendment or supplemental indenture authorized
pursuant to this Article 10 if the amendment or supplemental indenture does not adversely affect the rights, duties, liabilities or immunities of the Trustee. If it does, the Trustee may, in its sole discretion, but need not sign it. In signing or
refusing to sign such amendment or supplemental indenture, the Trustee shall be entitled to receive and, subject to Section 8.01, shall be fully protected in relying upon, an Opinion of Counsel stating that such amendment or supplemental
indenture is authorized or permitted by this Indenture. The Company may not sign an amendment or supplemental indenture until the Board of Directors approves it. A Guarantor may not sign an amendment or supplemental indenture until its board of
directors or other equivalent body approves it. 
  
 Section 10.07. Effect Of Supplemental Indentures. 
  
 Upon the execution of any supplemental indenture under this Article 10, 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. 
  
 ARTICLE 11 
  
 SUBORDINATION 
  
 Section 11.01. Agreement
to Subordinate. 
  
 The Company agrees, and each Holder by
accepting a Security agrees, that the Indebtedness evidenced by the Securities is subordinated in right of payment, to the extent and in the manner provided in this Article 11, to the prior payment in full of all Senior Debt (whether outstanding on
the date hereof or hereafter created, incurred, assumed or guaranteed), and that the subordination is for the benefit of the holders of Senior Debt. 
  
 Section 11.02. Liquidation; Dissolution; Bankruptcy. 
  

Upon any distribution to creditors of the Company in a liquidation or dissolution of the Company or in a bankruptcy, reorganization, insolvency,
receivership or similar proceeding relating to the Company or its property, in an assignment for the benefit of creditors or any marshaling of the Company’s assets and liabilities: 
  
 (1) holders of Senior Debt will be entitled to receive payment in full of all Obligations due in respect of
such Senior Debt (including interest after the commencement of any bankruptcy proceeding at the rate specified in the applicable Senior Debt) before the Holders of Securities will be entitled to receive any payment with respect to the Securities
(except that Holders of Securities may receive and retain Permitted Junior Securities and payments made from any trust created pursuant to Section 9.01 hereof); and 
  
 (2) until all Obligations with respect to Senior Debt (as provided in clause (1) above) are paid in
full, any distribution to which Holders would be entitled but for this Article 11 will be made to holders of Senior Debt (except that Holders of Securities may receive and retain Permitted Junior Securities and payments made from any trust created
pursuant to Section 9.01 hereof), as their interests may appear. 
  

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 Section 11.03. Default on Designated Senior Debt. 
  
 (a) The Company and the Guarantors may not make any payment or distribution
to the Trustee or any Holder in respect of Obligations with respect to the Securities and may not acquire from the Trustee or any Holder any Securities for cash or property (other than Permitted Junior Securities and payments made from any trust
created pursuant to Section 9.01 hereof) if: 
  
 (1) any payment default on Designated Senior Debt occurs and is continuing beyond any applicable grace period in the agreement, indenture or other document governing such Designated Senior Debt; or 
  
 (2) any other default occurs and is continuing on any series
of Designated Senior Debt that permits holders of that series of Designated Senior Debt to accelerate its maturity and the Trustee receives a notice of such default (a “Payment Blockage Notice”) from the Company or the holders of any
Designated Senior Debt. If the Trustee receives any such Payment Blockage Notice, no subsequent Payment Blockage Notice will be effective for purposes of this Section 11.03 unless and until (A) at least 360 days have elapsed since the
delivery of the immediately prior Payment Blockage Notice and (B) all scheduled payments of principal, premium and Additional Interest, if any, and interest on the Securities that have come due have been paid in full in cash. 
  
 No nonpayment default that existed or was continuing on the date of delivery
of any Payment Blockage Notice to the Trustee may be, or may be made, the basis for a subsequent Payment Blockage Notice unless such default shall have been cured or waived for a period of not less than 180 days. 
  
 (b) The Company may and will resume payments on and distributions in respect
of the Securities and may acquire them upon the earlier of: 
  
 (1) in the case of a payment default on Designated Senior Debt, upon the date upon which such default is cured or waived, or 
  
 (2) in the case of a nonpayment default on Designated Senior Debt, upon the earlier of the date (A) on which such nonpayment default
is cured or waived or (B) 179 days after the date on which the applicable Payment Blockage Notice is received, unless the maturity of any Designated Senior Debt has been accelerated, 
  
 if this Article 11 otherwise permits the payment, distribution or acquisition at the time of such payment or acquisition. 
  
 Section 11.04. Notice of Acceleration of Notes. 
  
 If payment of the Securities is accelerated because of an Event of Default,
the Company will promptly notify holders of Designated Senior Debt of the acceleration. 
  
 Section 11.05. When Distribution Must Be Paid Over. 
  
 In the event that the Trustee or any Holder receives any payment of any Obligations with respect to the Securities (other than Permitted Junior Securities
and payments made from any trust created pursuant to Section 9.01 hereof) at a time when the Trustee or such Holder, as applicable, has actual knowledge that such payment is prohibited by Section 11.03 hereof, such payment will be held by
the Trustee or such Holder, in trust for the benefit of, and will be paid forthwith over and delivered, upon 
  

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 written request, to, the holders of Senior Debt as their interests may appear under the agreement, indenture or other
document (if any) pursuant to which Senior Debt may have been issued, as their respective interests may appear, for application to the payment of all Obligations with respect to Senior Debt remaining unpaid to the extent necessary to pay such
Obligations in full in accordance with their terms, after giving effect to any concurrent payment or distribution to or for the holders of Senior Debt. 
  
 With respect to the holders of Senior Debt, the Trustee undertakes to perform only those obligations on the part of the Trustee as are specifically set
forth in this Article 11, and no implied covenants or obligations with respect to the holders of Senior Debt will be read into this Indenture against the Trustee. The Trustee will not be deemed to owe any fiduciary duty to the holders of Senior
Debt, and will not be liable to any such holders if the Trustee pays over or distributes to or on behalf of Holders or the Company or any other Person money or assets to which any holders of Senior Debt are then entitled by virtue of this Article
11, except if such payment is made as a result of the willful misconduct or gross negligence of the Trustee. 
  
 Section 11.06. Notice by Company. 
  
 The Company will promptly notify the Trustee and the Paying Agent of any facts known to the Company that would cause a payment of any Obligations with
respect to the Securities to violate this Article 11, but failure to give such notice will not affect the subordination of the Securities to the Senior Debt as provided in this Article 11. 
  
 Section 11.07. Subrogation.  
  
 After all Senior Debt is paid in full and until the Securities are paid in
full, Holders of Securities will be subrogated (equally and ratably with all other Indebtedness pari passu with the Securities) to the rights of holders of Senior Debt to receive distributions applicable to Senior Debt to the extent that
distributions otherwise payable to the Holders of Securities have been applied to the payment of Senior Debt. A distribution made under this Article 11 to holders of Senior Debt that otherwise would have been made to Holders of Securities is not, as
between the Company and Holders, a payment by the Company on the Securities. 
  
 Section 11.08. Relative Rights. 
  
 This Article 11 defines the relative rights of Holders of Securities and holders of Senior Debt. Nothing in this Indenture will: 
  
 (1) impair, as between the Company and Holders of Securities, the obligation of the Company, which is
absolute and unconditional, to pay principal of, premium and interest and Additional Interest, if any, on, the Securities in accordance with their terms; 
  
 (2) affect the relative rights of Holders of Securities and creditors of the Company other than their rights in relation to holders of
Senior Debt; or 
  
 (3) prevent the Trustee or
any Holder of Securities from exercising its available remedies upon a Default or Event of Default, subject to the rights of holders and owners of Senior Debt to receive distributions and payments otherwise payable to Holders of Securities.

  
 If the Company fails because of this Article 11 to pay
principal of, premium or interest or Additional Interest, if any, on, a Security on the due date, the failure is still a Default or Event of Default. 
  

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 Section 11.09. Subordination May Not Be Impaired by Company. 
  
 No right of any holder of Senior Debt to enforce the subordination of the
Indebtedness evidenced by the Securities may be impaired by any act or failure to act by the Company or any Holder or by the failure of the Company or any Holder to comply with this Indenture. 
  
 Section 11.10. Distribution or Notice to Representative.

  
 Whenever a distribution is to be made or a notice given to
holders of Senior Debt or Designated Senior Debt, the distribution may be made and the notice given to their Representative. 
  
 Upon any payment or distribution of assets of the Company referred to in this Article 11, the Trustee and the Holders of Securities will be entitled to
rely upon any order or decree made by any court of competent jurisdiction or upon any certificate of such Representative or of the liquidating trustee or agent or other Person making any distribution to the Trustee or to the Holders of Securities
for the purpose of ascertaining the Persons entitled to participate in such distribution, the holders of the Senior Debt and other Indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon
and all other facts pertinent thereto or to this Article 11. 
  
 Section 11.11. Rights of Trustee and Paying Agent. 
  
 Notwithstanding the provisions of this Article 11 or any other provision of this Indenture, the Trustee will not be charged with knowledge of the existence of any facts that would prohibit the making of any payment or
distribution by the Trustee, and the Trustee and the Paying Agent may continue to make payments on the Securities, unless the Trustee has received at its Corporate Trust Office at least five Business Days prior to the date of such payment written
notice of facts that would cause the payment of any Obligations with respect to the Securities to violate this Article 11. Only the Company or a Representative may give the notice. Nothing in this Article 11 will impair the claims of, or payments
to, the Trustee under or pursuant to Section 8.07 hereof. 
  
 The Trustee in its individual or any other capacity may hold Senior Debt with the same rights it would have if it were not Trustee. Any Agent may do the same with like rights. 
  
 Section 11.12. Authorization to Effect Subordination. 
  
 Each Holder of Securities, by the Holder’s acceptance thereof,
authorizes and directs the Trustee on such Holder’s behalf to take such action as may be necessary or appropriate to effectuate the subordination as provided in this Article 11, and appoints the Trustee to act as such Holder’s
attorney-in-fact for any and all such purposes. If the Trustee does not file a proper proof of claim or proof of debt in the form required in any proceeding referred to in Section 7.09 hereof at least 30 days before the expiration of the time
to file such claim, the Representatives are hereby authorized to file an appropriate claim for and on behalf of the Holders of the Securities. 
  
 Section 11.13. Amendments. 
  
 The provisions of this Article 11 may not be amended or modified without the written consent of the holders of all Designated Senior Debt. In addition,
any amendment to, or waiver of, the provisions of this Article 11 that adversely affects the rights of the Holders of the Securities will require the consent of the Holders of at least 75% in aggregate principal amount of Securities then
outstanding. 
  

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 Section 11.14. No Suspension of Remedies. 
  
 Nothing contained in this Article 11 shall limit the right of the Trustee or
Holders of Securities to take any action to accelerate the maturity of the Securities pursuant to Article 7 or to pursue any rights or remedies hereunder or under applicable law, subject to the rights, if any, under this Article 11 of the holders,
from time to time, of Senior Debt. 
  
 ARTICLE 12

  
 NOTE GUARANTEES 
  
 Section 12.01. Guarantee. 
  
 (a) Subject to this Article 12, each of the Guarantors hereby, jointly and
severally, unconditionally guarantees to each Holder of a Security authenticated and delivered by the Trustee and to the Trustee and its successors and assigns, irrespective of the validity and enforceability of this Indenture, the Securities or the
obligations of the Company hereunder or thereunder, that: 
  
 (1) the principal of, premium and Additional Interest, if any, and interest on the Securities will be promptly paid in full when due, whether at maturity, by acceleration or otherwise, and interest on the overdue
principal of and interest on the Securities, if any, if lawful, and all other obligations of the Company to the Holders or the Trustee hereunder or thereunder will be promptly paid in full or performed, all in accordance with the terms hereof and
thereof; and 
  
 (2) in case of any extension of
time of payment or renewal of any Securities or any of such other obligations, that the same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at Stated Maturity, by acceleration or
otherwise. 
  
 Failing payment when due of any amount so
guaranteed or any performance so guaranteed for whatever reason, the Guarantors will be jointly and severally obligated to pay the same immediately. Each Guarantor agrees that this is a guarantee of payment and not a guarantee of collection.

  
 (b) The Guarantors hereby agree that their obligations
hereunder are unconditional, irrespective of the validity, regularity or enforceability of the Securities or this Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Securities with respect to any
provisions hereof or thereof, the recovery of any judgment against the Company, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a guarantor. Each Guarantor hereby
waives diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of the Company, any right to require a proceeding first against the Company, protest, notice and all demands whatsoever and
covenants that this Note Guarantee will not be discharged except by complete performance of the obligations contained in the Securities and this Indenture. 
  
 (c) If any Holder or the Trustee is required by any court or otherwise to return to the Company, the Guarantors or any custodian, trustee, liquidator or
other similar official acting in relation to either the Company or the Guarantors, any amount paid either to the Trustee or such Holder, this Note Guarantee, to the extent theretofore discharged, will be reinstated in full force and effect.

  
 (d) Each Guarantor agrees that it will not be entitled to any
right of subrogation in relation to the Holders in respect of any obligations guaranteed hereby until payment in full of all obligations 
  

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 guaranteed hereby. Each Guarantor further agrees that, as between the Guarantors, on the one hand, and the Holders and
the Trustee, on the other hand, (1) the maturity of the obligations guaranteed hereby may be accelerated as provided in Article 7 hereof for the purposes of this Note Guarantee, notwithstanding any stay, injunction or other prohibition
preventing such acceleration in respect of the obligations guaranteed hereby, and (2) in the event of any declaration of acceleration of such obligations as provided in Article 7 hereof, such obligations (whether or not due and payable) will
forthwith become due and payable by the Guarantors for the purpose of this Note Guarantee. The Guarantors will have the right to seek contribution from any non-paying Guarantor so long as the exercise of such right does not impair the rights of the
Holders under the Note Guarantee. 
  
 Section 12.02.
Subordination of Note Guarantee. 
  
 The Obligations of
each Guarantor under its Note Guarantee pursuant to this Article 12 will be junior and subordinated to the Senior Debt of such Guarantor on the same basis as the Securities are junior and subordinated to Senior Debt of the Company. For the purposes
of the foregoing sentence, the Trustee and the Holders will have the right to receive and/or retain payments by any of the Guarantors only at such times as they may receive and/or retain payments in respect of the Securities pursuant to this
Indenture, including Article 11 hereof. 
  
 Section 12.03.
Limitation on Guarantor Liability. 
  
 Each Guarantor, and
by its acceptance of Securities, each Holder, hereby confirms that it is the intention of all such parties that the Note Guarantee of such Guarantor not constitute a fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform
Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to any Note Guarantee. To effectuate the foregoing intention, the Trustee, the Holders and the Guarantors hereby irrevocably
agree that the obligations of such Guarantor will be limited to the maximum amount that will, after giving effect to such maximum amount and all other contingent and fixed liabilities of such Guarantor that are relevant under such laws, and after
giving effect to any collections from, rights to receive contribution from or payments made by or on behalf of any other Guarantor in respect of the obligations of such other Guarantor under this Article 12, result in the obligations of such
Guarantor under its Note Guarantee not constituting a fraudulent transfer or conveyance. 
  
 Section 12.04. Execution and Delivery of Note Guarantee. 
  
 To evidence its Note Guarantee set forth in Section 12.01 hereof, each Guarantor hereby agrees that a notation of such Note Guarantee substantially
in the form attached as Exhibit C hereto will be endorsed by an Officer of such Guarantor on each Security authenticated and delivered by the Trustee and that this Indenture will be executed on behalf of such Guarantor by one of its Officers.

  
 Each Guarantor hereby agrees that its Note Guarantee set forth
in Section 12.01 hereof will remain in full force and effect notwithstanding any failure to endorse on each Security a notation of such Note Guarantee. 
  
 If an Officer whose signature is on this Indenture or on the Note Guarantee no longer holds that office at the time the Trustee authenticates the Note on
which a Note Guarantee is endorsed, the Note Guarantee will be valid nevertheless. 
  
 The delivery of any Security by the Trustee, after the authentication thereof hereunder, will constitute due delivery of the Note Guarantee set forth in this Indenture on behalf of the Guarantors. 
  

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 In the event that the Company or any of its Subsidiaries creates or acquires any Domestic Subsidiary
after the date of this Indenture, if required by Section 5.11 hereof, the Company will cause such Domestic Subsidiary to comply with the provisions of Section 5.11 hereof and this Article 12, to the extent applicable, except to the extent
that such Note Guarantee may be released in compliance with the terms of this Indenture. 
  
 Section 12.05. Exceptions. 
  
 A Guarantor shall be released of its obligations under its Note Guarantee if: 
  
 (1) such Guarantor does not guarantee any other Indebtedness of the Company or any of its Domestic Subsidiaries and does not have any
Indebtedness; or 
  
 (2) such Guarantor is
consolidated with or merged into the Company or another Guarantor. 
  
 After a
Note Guarantee is released pursuant to clause (1) of this Section 12.06, the Note Guarantee will be reinstated at such time as the Guarantor guarantees any other Indebtedness of the Company or any of its Domestic Subsidiaries or incurs any
Indebtedness. 
  
 Notwithstanding the foregoing, the Note
Guarantee of any Domestic Subsidiary shall not be required and, if necessary, shall be released if such Domestic Subsidiary is designated an “unrestricted subsidiary” under the terms of any of the Company’s Indebtedness and such
Domestic Subsidiary no longer guarantees any Indebtedness of the Company. The Note Guarantee of such Domestic Subsidiary shall be required or reinstated if such Domestic Subsidiary is no longer an “unrestricted subsidiary” or guarantees
any Indebtedness of the Company or any of its Domestic Subsidiaries. 
  
 Upon delivery by the Company to the Trustee of an Officers’ Certificate and an Opinion of Counsel (subject to customary qualifications and exclusions) to the effect that a Guarantor shall be released in accordance with the provisions
of this Indenture, the Trustee will execute any documents reasonably required in order to evidence the release of any Guarantor from its obligations under its Note Guarantee. 
  
 ARTICLE 13 
  
 MISCELLANEOUS 
  
 Section 13.01. Trust Indenture Act Controls. 
  
 If any provision of this Indenture limits, qualifies or conflicts with the duties imposed by any of Sections 310 to 317, inclusive, of the TIA through
operation of Section 318(c) thereof, such imposed duties shall control. 
  
 Section 13.02. Notices. 
  
 Any demand, authorization notice, request, consent or communication shall be given in writing and delivered in person or mailed by first-class mail, postage prepaid, addressed as follows or transmitted by facsimile transmission (confirmed
by delivery in person or mail by first-class mail, postage prepaid, or by guaranteed overnight courier) to the following facsimile numbers: 
  
 If to the Company or any Guarantor, to: 
  
 The Pantry, Inc. 
 1801 Douglas Drive

 Sanford, North Carolina 27330-1410 
 Attention: Chief Financial Officer 
 Facsimile No.: (919) 774-3329 
  

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 with a copy to: 
  

Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan, LLP 
 2500 Wachovia Capitol Center, Post Office Box 2611 
 Raleigh, North Carolina 27602-2611 
 Attention: Carl Patterson 
 Facsimile No:
(919) 821-6800 
  
 if to the Trustee, to: 
  
 Wachovia Bank, National Association 
 401 South Tryon Street, 12th Floor 
 Charlotte, North Carolina 28288-1179 
 Attention: Corporate Trust Department 
 Facsimile No: (704) 383-7316 
  
 Such notices or communications shall be effective when received. 
  

The Company or the Trustee by notice to the other may designate additional or different addresses for subsequent notices or communications. 

 
 Any notice or communication mailed to a Holder of a Security shall be
mailed by first-class mail or delivered by an overnight delivery service to it at its address shown on the register kept by the Primary Registrar. 
  
 Failure to mail a notice or communication to a Holder of a Security or any defect in it shall not affect its sufficiency with respect to other Holders of
Securities. If a notice or communication to a Holder of a Security is mailed in the manner provided above, it is duly given, whether or not the addressee receives it. 
  
 If the Company mails any notice to a Holder of a Security, it shall mail a copy to the Trustee and each Registrar, Paying
Agent and Conversion Agent. 
  
 Section 13.03.
Communications By Holders With Other Holders. 
  
 Holders
of Securities may communicate pursuant to TIA Section 312(b) with other Holders of Securities with respect to their rights under this Indenture or the Securities. The Company, the Trustee, the Registrar and any other person shall have the
protection of TIA Section 312(c). 
  
 Section 13.04.
Certificate And Opinion As To Conditions Precedent. 
  
 (a) 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 at the request of the Trustee: 
  
 (1) an Officers’ Certificate stating that, in the
opinion of the signers, all conditions precedent (including any covenants, compliance with which constitutes a condition precedent), if any, provided for in this Indenture relating to the proposed action have been complied with; and 
  

 65 








 (2) an Opinion of Counsel stating that, in the opinion of such counsel, all such
conditions precedent (including any covenants, compliance with which constitutes a condition precedent) have been complied with. 
  
 (b) Each Officers’ Certificate and Opinion of Counsel with respect to compliance with a condition or covenant provided for in this Indenture shall
include: 
  
 (1) a statement that the person
making such certificate or opinion has read such covenant or condition; 
  
 (2) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; 
  
 (3) a statement that, in the opinion of such person, he or
she has made such examination or investigation as is necessary to enable him or her to express an informed opinion as to whether or not such covenant or condition has been complied with; and 
  
 (4) a statement as to whether or not, in the opinion of such
person, such condition or covenant has been complied with; 
  
 provided, however,
that with respect to matters of fact an Opinion of Counsel may rely on an Officers’ Certificate or certificates of public officials. 
  
 Section 13.05. Record Date For Vote Or Consent Of Holders of Securities. 
  
 The Company (or, in the event deposits have been made pursuant to Section 9.01, the Trustee) may set a record date for
purposes of determining the identity of Holders entitled to vote or consent to any action by vote or consent authorized or permitted under this Indenture, which record date shall not be more than 30 days prior to the date of the commencement of
solicitation of such action. Notwithstanding the provisions of Section 10.04, if a record date is fixed, those persons who were Holders of Securities at the close of business on such record date (or their duly designated proxies), and only
those persons, shall be entitled to take such action by vote or consent or to revoke any vote or consent previously given, whether or not such persons continue to be Holders after such record date. 
  
 Section 13.06. Rules By Trustee, Paying Agent, Registrar And
Conversion Agent. 
  
 The Trustee may make reasonable rules
(not inconsistent with the terms of this Indenture) for action by or at a meeting of Holders. Any Registrar, Paying Agent or Conversion Agent may make reasonable rules for its functions. 
  
 Section 13.07. Legal Holidays. 
  
 A “Legal Holiday” is a Saturday, Sunday or a day on which state or federally chartered banking institutions in New
York, New York are authorized or obligated to close. If a payment date is a Legal Holiday, payment shall be made on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening period. If a Regular Record
Date is a Legal Holiday, the record date shall not be affected. 
  

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 Section 13.08. Governing Law. 
  
 This Indenture, the Securities and the Note Guarantees shall be governed by, and construed in accordance with, the laws of
the State of New York. 
  
 Section 13.09. No Adverse
Interpretation Of Other Agreements. 
  
 This Indenture may
not be used to interpret another indenture, loan or debt agreement of the Company or a Subsidiary of the Company. Any such indenture, loan or debt agreement may not be used to interpret this Indenture. 
  
 Section 13.10. No Recourse Against Others. 
  
 All liability described in paragraph 14 of the Securities of any director,
officer, employee or shareholder, as such, of the Company hereby is waived and released by each of the Holders. 
  
 Section 13.11. Successors. 
  
 All agreements of the Company and the Guarantors in this Indenture, the Securities and the Note Guarantees shall bind their respective successor. All
agreements of the Trustee in this Indenture shall bind its successor. 
  
 Section 13.12. Multiple Counterparts. 
  
 The parties may sign multiple counterparts of this Indenture. Each signed counterpart shall be deemed an original, but all of them together represent the same agreement. 
  
 Section 13.13. Separability. 
  
 If any provisions in this Indenture or in the Securities or Note Guarantees 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 13.14. Table Of Contents, Headings, Etc. 
  
 The table of contents, cross-reference sheet and headings of the Articles and Sections of this Indenture have been inserted for convenience of reference
only, are not to be considered a part hereof, and shall in no way modify or restrict any of the terms or provisions hereof. 
  
 [SIGNATURE PAGE FOLLOWS] 
  

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 IN WITNESS WHEREOF, the parties hereto have hereunto set their hands as of the date and year first above
written. 
  

			
	THE PANTRY, INC.
		
	By:	 	 /s/ Daniel J. Kelly


	Name:	 	 Daniel J. Kelly

	Title:	 	 Chief Financial Officer, Vice President and Secretary

	
	R. & H. MAXXON, INC.
		
	By:	 	 /s/ Daniel J. Kelly


	Name:	 	 Daniel J. Kelly

	Title:	 	 Executive Vice President and Assistant Secretary

	
	KANGAROO, INC.
		
	By:	 	 /s/ Daniel J. Kelly


	Name:	 	 Daniel J. Kelly

	Title:	 	 Executive Vice President and Assistant Secretary

	
	WACHOVIA BANK, NATIONAL ASSOCIATION,
	AS TRUSTEE
		
	By:	 	 /s/ Paul Anatrella


	Name:	 	 Paul Anatrella

	Title:	 	 Vice President



  

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 Exhibit A 
  
 [FORM OF FACE OF SECURITY] 
  
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE PANTRY, INC. 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. THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY IS EXCHANGEABLE FOR
SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS
SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR
DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.1 
  
 THIS SECURITY AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY, THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE
REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION. 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.2 
  
 THE HOLDER OF
THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) WHICH IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE
LAST DATE ON WHICH THE PANTRY, INC. OR ANY AFFILIATE OF THE PANTRY, INC. WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY) ONLY (A) TO THE PANTRY, INC. OR ANY PARENT OR SUBSIDIARY THEREOF, (B) FOR SO LONG AS THE
SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A 
  


	1	This paragraph should be included only if the Security is a Global Security. 


	2	These paragraphs to be included only if the Security is a Restricted Security. 

  

 A-1 








 “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHICH NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO A REGISTRATION STATEMENT WHICH IS EFFECTIVE UNDER THE SECURITIES ACT AT THE TIME OF
SUCH OFFER, TRANSFER OR SALE, OR (D) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE PANTRY, INC.’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
PURSUANT TO CLAUSE (D) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND IN EACH OF THE FOREGOING CASES, A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE
OF THIS SECURITY IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.2 
  
 THE HOLDER OF THIS SECURITY IS ENTITLED TO THE BENEFITS OF A REGISTRATION RIGHTS AGREEMENT (AS SUCH TERM IS DEFINED IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF) AND, BY ITS ACCEPTANCE HEREOF, AGREES TO BE BOUND
BY AND TO COMPLY WITH THE PROVISIONS OF SUCH REGISTRATION RIGHTS AGREEMENT.2 
  

 A-2 








 The Pantry, Inc. 
  
 3.00% Senior Subordinated Convertible Notes due 2012 
  

	


			
	No.     A1	 	CUSIP: [            ]

  
 The Pantry, Inc., a
Delaware corporation, promises to pay to Cede & Co. or registered assigns the principal amount of One Hundred Fifty Million Dollars ($150,000,000.00) on November 15, 2012. 
  
 This Security shall bear interest as specified on the other side of this Security. This Security is convertible as specified
on the other side of this Security. 
  
 Additional provisions of
this Security are set forth on the other side of this Security. 
  
 Dated: November 22, 2005 
  
 [SIGNATURE PAGE FOLLOWS] 
  

 A-3 








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

			
	THE PANTRY, INC.
		
	By:	 	  


	Name:	 	 
	Title:	 	 


  
 Dated: 
  
 Trustee’s Certificate of
Authentication: 
  
 This is one of the
Securities referred to in the 
 within-mentioned Indenture. 
  
 WACHOVIA BANK, NATIONAL ASSOCIATION, 
   as Trustee 
  

			
	By:	 	  


	 	 	Authorized Signatory

  

 A-4 








 [FORM OF REVERSE SIDE OF SECURITY] 
  
 The Pantry, Inc. 
  
 3.00% Senior Subordinated Convertible Notes due 2012 
  
 1. Interest 
  
 The Pantry, Inc., a Delaware corporation (the “Company”, which term shall include any successor corporation under the Indenture hereinafter
referred to), promises to pay interest on the principal amount of this Security at the rate of 3.00% per annum. The Company shall pay interest semiannually on May 15 and November 15 of each year (each an “Interest Payment
Date”), commencing May 15, 2006. Each payment of interest will include interest accrued through the day before the relevant Interest Payment Date (or purchase date, as the case may be). Cash interest will be computed on the basis of a
360-day year comprised of twelve 30-day months. Any reference herein to interest accrued or payable as of any date shall include any Additional Interest accrued or payable on such date as provided in the Registration Rights Agreement. 
  
 No sinking fund is provided for the Securities. 
  
 2. Method of Payment 
  
 The Company shall pay interest on this Security (except defaulted interest) to the person who is the Holder of this Security
at the close of business on May 1 or November 1, as the case may be (each, a “Regular Record Date”) next preceding the related Interest Payment Date. The Holder must surrender this Security to a Paying Agent to collect payment of
principal. The Company will pay principal and interest in money of the United States that at the time of payment is legal tender for payment of public and private debts. The Company may pay principal and interest in respect of any Certificated
Security by check or wire payable in such money; provided, however, that a Holder will be paid by wire transfer in immediately available funds at the election of such Holder if such Holder has provided wire transfer instructions to the Trustee at
least 10 Business Days prior to the Payment Date. 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. 
  
 Any wire transfer instructions received by the Trustee will remain in effect until revoked by the Holder. 
  
 3. Paying Agent, Registrar and Conversion Agent 
  
 Initially, Wachovia Bank, National Association (the “Trustee”,
which term shall include any successor trustee under the Indenture hereinafter referred to) will act as Paying Agent, Registrar and Conversion Agent. The Company may change any Paying Agent, Registrar or Conversion Agent without notice to the
Holder. The Company or any of its Subsidiaries may, subject to certain limitations set forth in the Indenture, act as Paying Agent or Registrar. 
  
 4. Indenture 
  
 This Security is one of a duly authorized issue of Securities of the Company designated as its 3.00% Senior Subordinated Convertible Notes Due 2012 (the
“Securities”), issued under an Indenture dated as of November 22, 2005 (together with any supplemental indentures thereto, the “Indenture”), 
  

 A-5 








 among the Company, the Guarantors named therein and the Trustee. The terms of this Security include those stated in the
Indenture and those required by or made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended, as in effect on the date of the Indenture. This Security is subject to all such terms, and the Holder of this Security is
referred to the Indenture and said Act for a statement of them. 
  
 The Securities are senior subordinated unsecured obligations of the Company limited to $150,000,000 aggregate principal amount. The Indenture does not limit other debt of the Company, secured or unsecured. The Securities are subordinated to
Senior Debt of the Company to the extent stated in Article 11 of the Indenture. 
  
 5. Purchase of Securities at Option of Holder Upon a Fundamental Change 
  
 At the option of the Holder and subject to the terms and conditions of the Indenture, the Company shall become obligated to purchase for cash, subject to certain exceptions described in the Indenture, all or any part
specified by the Holder (so long as the principal amount of such part is $1,000 or an integral multiple of $1,000) of the Securities held by such Holder on a date specified by the Company that is no more than 30 Business Days after the later of the
effective date of the Fundamental Change and the date that a Fundamental Change Company Notice is delivered, at a purchase price equal to 100% of the principal amount thereof together with accrued and unpaid interest, if any, and accrued and unpaid
Additional Interest, if any, to, but excluding, the Fundamental Change Repurchase Date. The Holder shall have the right to withdraw any Fundamental Change Repurchase Notice (in whole or in a portion thereof that is $1,000 or an integral multiple of
$1,000) at any time prior to the close of business on the Business Day next preceding the Fundamental Change Repurchase Date by delivering a written notice of withdrawal to the Paying Agent in accordance with the terms of the Indenture. 

 
 Other than purchase right at the option of Holders upon the occurrence of
a Fundamental Change, the Securities are not subject to any redemption rights or other repurchase rights at the option of the Company or the Holders. 
  
 6. Conversion 
  
 Subject to and upon compliance with the provisions of the Indenture and upon the occurrence of the events specified in the Indenture, a Holder may
surrender for conversion any Security that is $1,000 principal amount or integral multiples thereof. In lieu of receiving shares of the Company’s Common Stock, a Holder will receive, for each $1,000 principal amount of Securities surrendered
for conversion: 
  

	 	•	 	cash in an amount equal to the lesser of (1) $1,000 and (2) the Conversion Value, as defined in the Indenture; and 

  

	 	•	 	if the Conversion Value is greater than $1,000, a number of shares of the Company’s Common Stock, equal to the sum of the Daily Share Amounts, as defined in the Indenture, for
each of the ten consecutive Trading Days in the Conversion Reference Period, as defined in the Indenture, subject to the Company’s right to deliver cash in lieu of all or a portion of such shares as described in the Indenture.


  
 7. Denominations, Transfer, Exchange 
  
 The Securities are in registered form, without coupons, in denominations of
$1,000 principal amount and integral multiples of $1,000 principal amount. A Holder may register the transfer of 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 or other governmental charges that may be imposed in relation thereto by law or permitted by the Indenture. 
  

 A-6 








 8. Persons Deemed Owners 
  

The Holder of a Security may be treated as the owner of it for all purposes. 
  
 9. Unclaimed Money 
  
 If money for the payment of principal or interest remains unclaimed for two years, the Trustee and any Paying Agent will pay the money back to the Company
at its written request, subject to applicable unclaimed property law and the provisions of the Indenture. After that, Holders entitled to money must look to the Company for payment as general creditors unless an applicable abandoned property law
designates another person. 
  
 10. Amendment, Supplement and Waiver

  
 Subject to certain exceptions, the Indenture or the
Securities may be amended or supplemented with the consent of the Holders of at least a majority in aggregate principal amount of the Securities then outstanding, and an existing Default or Event of Default and its consequence or compliance with any
provision of the Indenture or the Securities may be waived in a particular instance with the consent of the Holders of a majority in aggregate principal amount of the Securities then outstanding. Without the consent of or notice to any Holder, the
Company and the Trustee may amend or supplement the Indenture or the Securities to, among other things, cure any ambiguity, defect or inconsistency or make any other change that does not adversely affect the rights of the Holders in any material
respect. 
  
 11. Successor Entity 
  
 When a successor corporation assumes all the obligations of its predecessor
under the Securities and the Indenture in accordance with the terms and conditions of the Indenture, the predecessor corporation (except in certain circumstances specified in the Indenture) shall be released from those obligations. 
  
 12. Defaults and Remedies 
  
 Under the Indenture, an Event of Default shall occur if: 
  

	 	(1)	the Company shall fail to pay when due the Principal or any Fundamental Change Repurchase Price of any Security, including any Additional Change of Control Shares, when the same
becomes due and payable whether at the Final Maturity Date, upon repurchase, acceleration or otherwise and whether or not prohibited by Article 11 of the Indenture; or 

  

	 	(2)	the Company shall fail to pay an installment of cash interest or Additional Interest, if any, on any of the Securities, which failure continues for 30 days after the date when due
and whether or not prohibited by Article 11 of the Indenture; or 

  

	 	(3)	the Company shall fail to deliver when due all cash and shares of Common Stock deliverable upon conversion of the Securities, which failure continues for 15 days; or


  

 A-7 









	 	(4)	the Company or any Guarantor shall fail to perform or observe any other term, covenant or agreement contained in the Securities or the Indenture for a period of 60 days after
receipt by the Company of a Notice of Default specifying such failure; or 

  

	 	(5)	there is a default under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any Indebtedness for money borrowed by
the Company or any of the Guarantors (or the payment of which is guaranteed by the Company or any of its subsidiaries) whether such Indebtedness or guarantee now exists, or is created after the date of this Indenture, if that default:


  

	 	(A)	is caused by a failure to pay at final Stated Maturity principal of, or interest or premium, if any, on such Indebtedness prior to the expiration of the grace period provided in
such Indebtedness on the date of such default (a “Payment Default”); or 

  

	 	(B)	results in the acceleration of such Indebtedness prior to its final Stated Maturity, 

  
 and in each case the principal amount of any such Indebtedness, together with the principal amount of any other such
Indebtedness under which there has been a Payment Default or the maturity of which has been so accelerated, aggregates $10.0 million or more; or 
  

	 	(6)	except as permitted under the Indenture, any Note Guarantee of a Guarantor that is a Significant Subsidiary shall be held in any judicial proceeding to be unenforceable or invalid
or shall cease for any reason to be in full force and effect or any such Guarantor that is a Significant Subsidiary, or any Person acting on behalf of any such Guarantor, shall deny or disaffirm its obligations under its Note Guarantee; or


  

	 	(7)	the Company or any Guarantor that is a Significant Subsidiary pursuant to or within the meaning of any Bankruptcy Law: 

  

	 	(A)	commences as a debtor a voluntary case or proceeding; or 

  

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

  

	 	(C)	consents to the appointment of a Receiver of it or for all or substantially all of its property; or 

  

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

  

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

  

	 	(F)	consents to the filing of such a petition or the appointment of or taking possession by a Receiver; or 

  

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

  

 A-8 









	 	(A)	grants relief against the Company or any Guarantor that is a Significant Subsidiary in an involuntary case or proceeding or adjudicates the Company or any Guarantor that is a
Significant Subsidiary insolvent or bankrupt; or 

  

	 	(B)	appoints a Receiver of the Company or any Guarantor that is a Significant Subsidiary or for all or substantially all of the property of the Company or any Guarantor that is a
Significant Subsidiary; or 

  

	 	(C)	orders the winding up or liquidation of the Company or any Guarantor that is a Significant Subsidiary; 

  
 and in each case the order or decree remains unstayed and in effect for 60 consecutive days. 
  
 Notwithstanding the above, no Event of Default under clause (4) above
shall occur until the Trustee notifies the Company in writing, or the Holders of at least 25% in aggregate principal amount of the Securities then outstanding notify the Company and the Trustee in writing, of the Default (a “Notice of
Default”), and the Company does not cure the Default within the time specified in clause (4) after receipt of such notice. 
  
 If an Event of Default (other than an Event of Default specified in clause (7) or (8) above) occurs and is continuing with respect to the
Company or any Guarantor, the Trustee may, by notice to the Company, or the Holders of at least 25% in aggregate principal amount of the Securities then outstanding may, by notice to the Company and the Trustee, declare the principal amount and
accrued and unpaid interest, if any, and accrued and unpaid Additional Interest, if any, through the date of declaration on all the Securities to be immediately due and payable. Upon such a declaration, such principal amount and such accrued and
unpaid interest, if any, and such accrued and unpaid Additional Interest, if any, shall be due and payable immediately. If an Event of Default specified in clauses (7) or (8) occurs in respect of the Company or any Guarantor that is a
Significant Subsidiary and is continuing, the principal amount and accrued but unpaid interest, if any, and accrued and unpaid Additional Interest, if any, on all the Securities shall become and be immediately due and payable without any declaration
or other act on the part of the Trustee or any Holders of Securities. The Holders of a majority in aggregate 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 the Securities which have become due solely by such declaration of acceleration, have been cured or waived; (b) to the extent the payment of such interest is
lawful, interest (calculated at the rate per annum borne by the Securities) on overdue installments of interest and overdue principal, which has become due otherwise than by such declaration of acceleration, has been paid; and (c) the
rescission would not conflict with any judgment or decree of a court of competent jurisdiction. No such rescission shall affect any subsequent Default or impair any right consequent thereto. Holders may not enforce the Indenture or the Securities
except as provided in the Indenture. The Trustee may require indemnity satisfactory to it before it enforces the Indenture or the Securities. Subject to certain limitations, Holders of a majority in aggregate principal amount of the Securities then
outstanding may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders for a period of 30 days notice of any continuing Default (except a Default in payment of principal or interest) if and so long as it
determines that withholding notice is in their interests. The Company is required to file periodic certificates with the Trustee as to the Company’s compliance with the Indenture and knowledge or status of any Default. 
  
 13. Trustee Dealings With the Company 
  
 Wachovia Bank, National Association, the initial Trustee under the
Indenture, in its individual or any other capacity, may make loans to, accept deposits from and perform services for the Company or an Affiliate of the Company, and may otherwise deal with the Company or an Affiliate of the Company, as if it were
not the Trustee. 
  

 A-9 








 14. 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 nor for any claim based on, in respect of or by reason of such obligations or their creation. The Holder of this Security by accepting this Security waives and releases all such liability. The waiver
and release are part of the consideration for the issuance of this Security. 
  
 15. Authentication 
  
 This Security shall not be
valid until the Trustee or an authenticating agent manually signs the certificate of authentication on the other side of this Security. 
  
 16. Abbreviations and Definitions 
  
 Customary abbreviations may be used in the name of the Holder 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 UGMA (= Uniform Gifts to Minors Act). 
  
 All terms defined in the Indenture and used in this Security but not specifically defined herein are defined in the Indenture and are used herein as so
defined. 
  
 17. Indenture to Control; Governing Law 
  
 In the case of any conflict between the provisions of this Security or the
Note Guarantee and the Indenture, the provisions of the Indenture shall control. This Security, the Note Guarantee and the Indenture shall be governed by, and construed in accordance with, the laws of the State of New York. 
  
 The Company will furnish to any Holder, upon written request and without
charge, a copy of the Indenture. Requests may be made to: The Pantry, Inc., 1801 Douglas Drive, Sanford, North Carolina 27330, Attention: Chief Financial Officer, Facsimile No.: (919) 774-3329, Telephone No.: (919) 774-6700, ext. 5202.

  

 A-10 








 ASSIGNMENT FORM 
  

To assign this Security, fill in the form below: 
  
 I or we assign and transfer this Security to              
  
  

 (Insert assignee’s soc. sec. or tax I.D. no.) 
  
  

  

  

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


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

					
	 	 	 	 	Your Signature:
	Date:	 	  

	 	  


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



	*	Signature guaranteed by: 

  

			
	 By:
	 	  





	*	The signature must be guaranteed by an institution which is a member of one of the following recognized signature guaranty programs: (i) the Securities Transfer Agent Medallion
Program (STAMP); (ii) the New York Stock Exchange Medallion Program (MSP); (iii) the Stock Exchange Medallion Program (SEMP); or (iv) such other guaranty program acceptable to the Trustee. 

  

 A-11 








 CONVERSION NOTICE 
  
 To convert this Security into Common Stock of the Company, check the box:   ̈ 
  
 To convert only part of this Security, state the principal amount to be converted (must be $1,000 or a integral multiple of $1,000):
$                    . 
  
 If you want the stock certificate made out in another person’s name, fill in the form below: 
  
  

 (Insert assignee’s soc. sec. or tax I.D. no.) 
  
  

  
  

  
  

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

					
	 	 	 	 	Your Signature:
			
	  
 Date:
	 	  
  

	 	  


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



	*	Signature guaranteed by: 

  

			
	 By:
	 	  





	*	The signature must be guaranteed by an institution which is a member of one of the following recognized signature guaranty programs: (i) the Securities Transfer Agent Medallion
Program (STAMP); (ii) the New York Stock Exchange Medallion Program (MSP); (iii) the Stock Exchange Medallion Program (SEMP); or (iv) such other guaranty program acceptable to the Trustee. 

  

 A-12 








 FUNDAMENTAL CHANGE REPURCHASE NOTICE 
  

	To:	The Pantry, Inc. 

  
 The undersigned registered owner of this Security hereby irrevocably acknowledges receipt of a notice from The Pantry, Inc. (the “Company”) as
to the occurrence of a Fundamental Change with respect to the Company and requests and instructs the Company to purchase the entire principal amount of this Security, or the portion thereof (which is $1,000 or an integral multiple thereof) below
designated, in accordance with the terms of the Indenture referred to in this Security at the Fundamental Change Repurchase Price, together with accrued and unpaid interest and Additional Interest, if any, to, but excluding, such date, to the
registered Holder hereof. 
  

					
	 	 	 	 	  


	Date:	 	  

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


	 	 	 	 	Signature Guaranty
		
	Principal amount to be repurchased (in an integral multiple of $1,000, if less than all):	 	 
		
	  

	 	 

  
 NOTICE: The signature to the foregoing
Election must correspond to the Name as written upon the face of this Security in every particular, without any alteration or change whatsoever. 
  

 A-13 








 SCHEDULE OF EXCHANGES OF SECURITIES 
  
 The following exchanges, purchases or conversions of a part of this Global Security have been made: 
  

							
	 Principal Amount of
 this Global Note
 Following Such
 Decrease Date of
 Exchange (or Increase)

	 	 Authorized
 Signatory of
 Securities Custodian

	 	 Amount of Decrease
 in Principal Amount
 of this Global Note

	 	 Amount of Increase
 in Principal Amount
 of this Global Note



  

 A-14 








 CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR REGISTRATION 
 OF TRANSFER OF RESTRICTED SECURITIES 
  

	Re:	3.00% Senior Subordinated Convertible Notes Due 2012 (the “Securities”) of The Pantry, Inc. 

  
 This certificate relates to $             principal
amount of Securities owned in (check applicable box) 
  
         book-entry or     definitive form by
                                        
(the “Transferor”). 
  
 The Transferor has requested a
Registrar or the Trustee to exchange or register the transfer of such Securities. 
  
 In connection with such request and in respect of each such Security, the Transferor does hereby certify that the Transferor is familiar with transfer restrictions relating to the Securities as provided in
Section 2.12 of the Indenture dated as of November 22, 2005 between The Pantry, Inc., the Guarantors named therein and Wachovia Bank, National Association, as trustee (the “Indenture”), and the transfer of such Security is being
made pursuant to an effective registration statement under the Securities Act of 1933, as amended (the “Securities Act”) (check applicable box) or the transfer or exchange, as the case may be, of such Security does not require registration
under the Securities Act because (check applicable box): 
  

			
	____	  	Such Security is being transferred pursuant to an effective registration statement under the Securities Act.
		
	____	  	Such Security is being acquired for the Transferor’s own account, without transfer.
		
	____	  	Such Security is being transferred to the Company or a Subsidiary (as defined in the Indenture) of the Company.
		
	____	  	Such Security is being transferred to a person the Transferor reasonably believes is a “qualified institutional buyer” (as defined in Rule 144A or any successor provision thereto
(“Rule 144A”) under the Securities Act) that is purchasing for its own account or for the account of a “qualified institutional buyer”, in each case to whom notice has been given that the transfer is being made in reliance on
such Rule 144A, and in each case in reliance on Rule 144A.
		
	____	  	Such Security is being transferred pursuant to and in compliance with an exemption from the registration requirements under the Securities Act in accordance with Rule 144 (or any successor
thereto) (“Rule 144”) under the Securities Act.
		
	____	  	Such Security is being transferred to a non-U.S. Person in an offshore transaction in compliance with Rule 904 of Regulation S under the Securities Act (or any successor
thereto).
		
	____	  	Such Security is being transferred pursuant to and in compliance with an exemption from the registration requirements of the Securities Act (other than an exemption referred to above) and as
a result of which such Security will, upon such transfer, cease to be a “restricted security” within the meaning of Rule 144 under the Securities Act.

  
 The Transferor
acknowledges and agrees that, if the transferee will hold any such Securities in the form of beneficial interests in a Global Note which is a “restricted security” within the meaning of Rule 
  

 A-15 








 144 under the Securities Act, then such transfer can only be made pursuant to (i) Rule 144A under the Securities Act
and such transferee must be a “qualified institutional buyer” (as defined in Rule 144A) or (ii) Regulation S under the Securities Act. 
  

					
	Date:	 	  

	 	  


	 	 	 	 	(Insert Name of Transferor)

  

 A-16 








 Exhibit B 
  
 FORM OF SUPPLEMENTAL INDENTURE 
 TO BE DELIVERED
BY SUBSEQUENT GUARANTORS 
  
 SUPPLEMENTAL INDENTURE (this “Supplemental
Indenture”), dated as of                     , 200  , among
                     (the “Guaranteeing Subsidiary”), a subsidiary of
                     (or its permitted successor), a [Delaware] corporation (the “Company”), the Company, the other Guarantors (as
defined in the Indenture referred to herein) and                     , as trustee under the Indenture referred to below (the
“Trustee”). 
  
 WITNESSETH 
  
 WHEREAS, the Company has heretofore executed and delivered to the Trustee an indenture (the
“Indenture”), dated as of November 22, 2005 providing for the issuance of 3.00% Senior Subordinated Convertible Notes due 2012 (the “Notes”); 
  
 WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Subsidiary shall execute and deliver to the Trustee a
supplemental indenture pursuant to which the Guaranteeing Subsidiary shall unconditionally guarantee all of the Company’s Obligations under the Notes and the Indenture on the terms and conditions set forth herein (the “Note
Guarantee”); and 
  
 WHEREAS, pursuant to Section 10.01 of the
Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture. 
  
 NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Guaranteeing Subsidiary and the Trustee mutually covenant and agree for
the equal and ratable benefit of the Holders of the Notes as follows: 
  
 1.
CAPITALIZED TERMS. Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture. 
  
 2. AGREEMENT TO GUARANTEE. The Guaranteeing Subsidiary hereby agrees to provide an unconditional Guarantee on the terms and subject to the conditions set forth in the
Note Guarantee and in the Indenture including but not limited to Article 12 thereof. 
  
 4. NO RECOURSE AGAINST OTHERS. No past, present or future director, officer, employee, incorporator, stockholder or agent of the Guaranteeing Subsidiary, as such, shall have any liability for any obligations of the Company or any
Guaranteeing Subsidiary under the Notes, any Note Guarantees, the Indenture or this Supplemental Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of the Notes by accepting a Note
waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes. Such waiver may not be effective to waive liabilities under the federal securities laws and it is the view of the SEC that such a
waiver is against public policy. 
  
 5. NEW YORK LAW TO GOVERN. THE INTERNAL LAW
OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED
THEREBY. 
  

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 6. COUNTERPARTS. The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an
original, but all of them together represent the same agreement. 
  
 7. EFFECT OF
HEADINGS. The Section headings herein are for convenience only and shall not affect the construction hereof. 
  
 8. THE TRUSTEE. The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all
of which recitals are made solely by the Guaranteeing Subsidiary and the Company. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed and attested, all as of the date first above written. 
  
 Dated as of                     ,
20     
  

			
	SIGNATURES
	
	[NAME OF GUARANTEEING SUBSIDIARY]
		
	By:	 	  


	Name:	 	 
	Title:	 	 
	
	THE PANTRY, INC.
		
	By:	 	  


	Name:	 	 
	Title:	 	 
	
	R. & H. MAXXON, INC.
		
	By:	 	  


	Name:	 	 
	Title:	 	 
	
	KANGAROO, INC.
		
	By:	 	  


	Name:	 	 
	Title:	 	 
	
	WACHOVIA BANK, NATIONAL ASSOCIATION, AS TRUSTEE
		
	By:	 	  


	Name:	 	 
	Title:	 	 


  

 B-2 








 Exhibit C 
  
 FORM OF NOTATION OF GUARANTEE 
  
 For value received, each Guarantor (which term includes any successor Person under the Indenture) has, jointly and severally, unconditionally guaranteed, to the extent
set forth in the Indenture and subject to the provisions in the Indenture dated as of November 22, 2005 (the “Indenture”) among The Pantry, Inc., (the “Company”), the Guarantors party thereto and Wachovia Bank, National
Association, as trustee (the “Trustee”), (a) the due and punctual payment of the principal of, premium and Additional Interest, if any, and interest on the 3.00% Senior Subordinated Convertible Notes due 2012 (the “Notes”)
whether at Stated Maturity, by acceleration or otherwise, the due and punctual payment of interest on overdue principal of and interest on the Notes, if any, if lawful, and the due and punctual performance of all other obligations of the Company to
the Holders or the Trustee all in accordance with the terms of the Indenture and (b) in case of any extension of time of payment or renewal of any Notes or any of such other obligations, that the same will be promptly paid in full when due or
performed in accordance with the terms of the extension or renewal, whether at Stated Maturity, by acceleration or otherwise. The obligations of the Guarantors to the Holders of Notes and to the Trustee pursuant to the Note Guarantee and the
Indenture are expressly set forth in Article 12 of the Indenture, including the circumstances under which such obligations may be released, and reference is hereby made to the Indenture for the precise terms of the Note Guarantee. Each Holder of a
Note, by accepting the same, (a) agrees to and shall be bound by such provisions, (b) authorizes and directs the Trustee, on behalf of such Holder, to take such action as may be necessary or appropriate to effectuate the subordination as
provided in the Indenture and (c) appoints the Trustee attorney-in-fact of such Holder for such purpose. 
  
 Capitalized terms used but not defined herein have the meanings given to them in the Indenture. 
  

			
	R. & H. MAXXON, INC.
		
	By:	 	  


	Name:	 	 
	Title:	 	 
	
	KANGAROO, INC.
		
	By:	 	  


	Name:	 	 
	Title:	 	 


  

 C-1