Document:

Exhibit
4.2

 

Certificate No.
           

 

GENZYME CORPORATION

 

THIS SECURITY
AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS SECURITY HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN
ACCORDANCE WITH THE FOLLOWING SENTENCE. 
BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE
ACQUIRER:

 

(1)          REPRESENTS THAT IT AND
ANY ACCOUNT FOR WHICH IT IS ACTING IS A “QUALIFIED INSTITUTIONAL BUYER” (WITHIN
THE MEANING OF RULE 144A UNDER THE SECURITIES ACT) AND THAT IT EXERCISES SOLE
INVESTMENT DISCRETION WITH RESPECT TO EACH SUCH ACCOUNT, AND

 

(2)          AGREES THAT IT WILL NOT
DIRECTLY OR INDIRECTLY ENGAGE IN ANY HEDGING TRANSACTIONS INVOLVING THIS
SECURITY OR THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS SECURITY UNLESS
IN COMPLIANCE WITH THE SECURITIES ACT, AND

 

(3)          AGREES FOR THE BENEFIT
OF THE COMPANY THAT IT WILL NOT OFFER, SELL, PLEDGE OR OTHERWISE TRANSFER THIS
SECURITY OR ANY BENEFICIAL INTEREST HEREIN, PRIOR TO THE DATE THAT IS THE LATER
OF (X) TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST
DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS
SECURITY (OR ANY PREDECESSOR OF THIS SECURITY) OR SUCH SHORTER PERIOD OF TIME
AS PERMITTED BY RULE 144(K) UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION
THEREUNDER, AND (Y) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY
APPLICABLE LAW, EXCEPT ONLY

 

(A)                    TO THE COMPANY
OR ANY SUBSIDIARY THEREOF,

 

(B)                      PURSUANT TO
A REGISTRATION STATEMENT WHICH IS EFFECTIVE UNDER THE SECURITIES ACT,

 

(C)                      TO A
QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES
ACT, OR

 

(D)                     PURSUANT TO
THE SAFE HARBOR FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT
OR ANY AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT.

 

PRIOR TO THE REGISTRATION OF ANY TRANSFER IN
ACCORDANCE WITH (3)(C) ABOVE, A DULY COMPLETED AND SIGNED CERTIFICATE (THE FORM
OF WHICH MAY BE OBTAINED FROM THE TRUSTEE) MUST BE DELIVERED TO THE
TRUSTEE.  PRIOR TO THE REGISTRATION OF
ANY TRANSFER IN ACCORDANCE WITH (3)(D)

 

 

ABOVE, THE COMPANY AND THE TRUSTEE RESERVE
THE RIGHT TO REQUIRE THE DELIVERY OF SUCH LEGAL OPINIONS, CERTIFICATIONS OR OTHER
EVIDENCE AS MAY REASONABLY BE REQUIRED IN ORDER TO DETERMINE THAT THE
PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE WITH THE SECURITIES ACT AND
APPLICABLE STATE SECURITIES LAWS.  NO
REPRESENTATION IS MADE AS TO THE AVAILABILITY OF ANY EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE
MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME
OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY OR A SUCCESSOR DEPOSITARY.  THIS SECURITY IS NOT EXCHANGEABLE FOR
SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS
NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO
TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY 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) MAY BE REGISTERED
EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

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

 

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF CEDE & CO.
OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS
OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH
THE RESTRICTIONS SET FORTH IN SECTION 2.16 OF THE INDENTURE.

 

 

Certificate No.
           

 

1.25% Convertible
Senior Note due 2023

CUSIP No. 372917 AM 6

 

Genzyme Corporation, a Massachusetts
corporation (the “Company”), for value received, hereby
promises to pay to Cede & Co., or its registered assigns, the principal sum
of
                   Dollars
($                   )
on December 1, 2023 and to pay interest thereon, as provided on the
reverse hereof, until the principal and any unpaid and accrued interest are
paid or duly provided for.

 

Interest Payment Dates: June 1 and
December 1, with the first payment to be made on June 1, 2004.

 

Record Dates: May 15 and
November 15.

 

The provisions on the back of this
certificate are incorporated as if set forth on the face hereof.

 

IN
WITNESS WHEREOF, Genzyme Corporation has caused this
instrument to be duly signed.

 

	
   

  	
  GENZYME CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:
  Michael S. Wyzga

  
	
   

  	
  Title:  Executive Vice President, Finance; Chief

  Financial Officer

  

 

Dated: December 9, 2003

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

U.S. BANK NATIONAL ASSOCIATION,  as Trustee

 

 

	
  By:

  	
   

  	
   

  
	
  Authorized
  Signatory

  
	
   

  
	
  Dated: December 9, 2003

  

 

 

[REVERSE OF SECURITY]

 

GENZYME CORPORATION

 

1.25% Convertible Senior Note due 2023

 

Interest.  Genzyme Corporation, a Massachusetts corporation
(the “Company”),
promises to pay interest on the principal amount of this Security at the rate per annum
shown above.  The Company will pay
interest semi-annually on June 1 and December 1 of each year, with
the first payment to be made on June 1, 2004.  Interest on the Securities will accrue on the principal amount
from, and including, the most recent date to which interest has been paid or
provided for or, if no interest has been paid, from, and including, December 9,
2003, in each case to, but excluding, the next interest payment date or
Maturity Date, as the case may be. 
Interest will be computed on the basis of a 360-day year of twelve
30-day months.

 

Maturity.  The Securities will mature on
December 1, 2023.

 

Method
of Payment. 
The Company will pay interest on the Securities (except defaulted
interest) to the persons who are registered Holders of Securities at the close
of business on the record date set forth on the face of this Security
immediately preceding the applicable interest payment date.  Holders must surrender Securities to a
Paying Agent to collect the principal, Redemption Price, Option Purchase Price
or Repurchase Price of the Securities, plus, if applicable, accrued and unpaid
interest, if any, payable as herein provided upon Redemption, Repurchase at
Holder’s Option or Repurchase Upon Repurchase Event, as the case may be.  The Company will pay all amounts due with
respect to the Securities in money of the United States that at the time of payment
is legal tender for payment of public and private debts or, if permitted under
the Indenture, in shares of Common Stock in accordance with the Indenture.  With respect to Securities that are in
global form, the Company will make payments on such Securities by wire transfer
of immediately available funds to the account specified by the Holders
thereof.  With respect to a Security
that is held, other than in global form, by a Holder of more than $5.0 million
aggregate principal amount of Securities, the Company will make payments on
such Security by wire transfer of immediately available funds to the account
specified by such Holder or, if no such account is specified, by mailing a
check to such Holder’s registered address. 
With respect to a Security that is held, other than in global form, by a
Holder of not more than $5.0 million aggregate principal amount of Securities,
the Company will make payments on such Security by mailing a check to such
Holder’s registered address.

 

Paying
Agent, Registrar, Conversion Agent.  Initially, U.S. Bank National Association
(the “Trustee”)
will act as Paying Agent, Registrar, Bid Solicitation Agent and Conversion
Agent.  The Company may change any
Paying Agent, Registrar, Bid Solicitation Agent or Conversion Agent without
notice.

 

Indenture.  The Company issued the Securities under an
Indenture dated as of December 9, 2003 (the “Indenture”) between the
Company and the Trustee.  The terms of
the Securities include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939 (the “Act”).  The Securities are subject to all such
terms, and

 

1

 

Securityholders are referred to the Indenture and the Act for a
statement of such terms.  The Securities
are general unsecured senior obligations of the Company limited to $600,000,000
aggregate principal amount ($690,000,000 if the Initial Purchasers have elected
to exercise in full the Option to purchase up to an additional $90,000,000
aggregate principal amount of the Securities), except as otherwise provided in
the Indenture (except for Securities issued in substitution for destroyed,
mutilated, lost or stolen Securities). 
Terms used herein which are defined in the Indenture have the meanings
assigned to them in the Indenture.

 

Optional
Redemption. 
The Securities will be redeemable prior to maturity at the option of the
Company, in whole or in part, at any time on or after December 1, 2008 on
any date (the “Redemption Date”) not less than 30 nor more than 60 days after
the mailing of a redemption notice to each holder of Securities to be redeemed,
at a redemption price, payable in cash, equal to one hundred percent (100%) of
the principal amount of the Securities to be redeemed plus any accrued and
unpaid interest to, but excluding, the Redemption Date; provided, that if such
Redemption Date is also an interest payment date, such accrued and unpaid
interest with respect to a Security called for Redemption will be paid on such
interest payment date to the Holder of record of such Security at the close of
business on the relevant record date; provided further, that the Company will
make at least ten (10) semi-annual interest payments with respect to the
Securities prior to redeeming any Securities under this paragraph 6.

 

If the Paying Agent (other than the Company)
holds on the Redemption Date money sufficient to pay the Redemption Price, and
accrued and unpaid interest, if any, to, but excluding, the Redemption Date,
payable on the Redemption Date with respect to a Security, then (unless the
Company defaults in the payment of the Redemption Price or such accrued and
unpaid interest) on and after the Redemption Date such Security shall be deemed
to be no longer outstanding, interest on such Security shall cease to accrue,
and such Security shall be deemed paid whether or not such Security is
delivered to the Paying Agent. 
Thereafter, all rights of the Holder of such Security shall terminate
with respect to such Security, other than the right to receive the Redemption
Price plus such accrued and unpaid interest.

 

Notice
of Redemption. 
Notice of Redemption will be mailed at least thirty (30) days but not
more than sixty (60) days before the Redemption Date to each Holder of
Securities to be redeemed at its registered address.  Securities in denominations larger than $1,000 principal amount
may be redeemed in part but only in integral multiples of $1,000 principal
amount.

 

Purchase
by the Company at the Option of the Holder.  Subject to the terms and conditions of the
Indenture, the Company shall become obligated to purchase, at the option of the
Holder, the Securities held by such Holder on December 1, 2008,
December 1, 2013 and December 1, 2018 (each, an “Option Purchase Date”) at an
Option Purchase Price equal to one hundred percent (100%) of the principal
amount of Securities to be purchased, plus accrued and unpaid interest, if any,
to, but excluding, applicable Option Purchase Date, upon delivery of a Purchase
Notice containing the information set forth in the Indenture, at any time from
the opening of business on the date that is twenty (20) Business Days prior to
the applicable Option Purchase Date until 5:00 p.m., New York City time, on the
third (3rd) Business Day immediately preceding the applicable Option Purchase
Date and upon delivery of the Securities to the Paying Agent by the Holder as
set forth in the Indenture.  Subject to
certain conditions and exceptions set forth in the Indenture, the Option
Purchase Price may be paid for, in whole or in part, at the

 

2

 

election of the Company, in cash or shares of Common Stock or in any
combination of cash and shares of Common Stock.

 

Holders have the right to withdraw any
Purchase Notice by delivering to the Paying Agent a written notice of
withdrawal in accordance with the provisions of the Indenture at any time prior
to 5:00 p.m., New York City time, on the third (3rd) Business Day prior to the
applicable Option Purchase Date, or such later time as may be required by law.

 

If the Paying Agent (other than the Company)
holds on the applicable Option Purchase Date money and/or Common Stock, if
applicable and as provided in the Indenture, sufficient to pay the Option
Purchase Price, and accrued and unpaid interest, if any, to, but excluding,
such Option Purchase Date, payable in respect of a Security on such Option
Purchase Date, then on and after such Option Purchase Date such Security shall
be deemed to be no longer outstanding and interest on it shall cease to accrue,
and such Security shall be deemed paid whether or not such Security is
delivered to the Paying Agent. 
Thereafter, all other rights of the Holder(s) of such Security shall
terminate with respect to such Security, other than the right to receive the
Option Purchase Price plus such accrued and unpaid interest.

 

Repurchase
at Option of Holder Upon a Repurchase Event.  Subject to the terms and conditions of the
Indenture, in the event of a Repurchase Event, each Holder of the Securities
shall have the right, at the Holder’s option, to require the Company to
repurchase such Holder’s Securities including any portion thereof which is
$1,000 in principal amount or any integral multiple thereof on a date selected
by the Company (the “Repurchase Date”) no later than thirty (30)
days after the date on which notice of such Repurchase Event is mailed in
accordance with the immediately succeeding paragraph, at a price payable in
cash equal to one hundred percent (100%) of the outstanding principal amount of
such Security, plus accrued and unpaid interest to, but excluding, the
Repurchase Date.

 

Within thirty (30) days after the occurrence
of the Repurchase Event, the Company is obligated to give notice of the
occurrence of such Repurchase Event to each Holder.  Such notice shall include, among other things, the date by which
Holder must notify the Company of such Holder’s intention to exercise the
Repurchase Right and of the procedure which such Holder must follow to exercise
such right.  To exercise the Repurchase
Right, a Holder of Securities must, in accordance with the provisions of the
Indenture, (i) deliver, no later than 5:00 p.m., New York City time, on the
third (3rd) Business Day immediately preceding the Repurchase Date, written
notice to the Paying Agent of the Holder’s exercise of such right; and (ii)
deliver, at any time after the delivery of such written notice, the Securities
with respect to which the Holder is exercising its Repurchase Right, duly
endorsed for transfer to the Company.

 

A “Repurchase Event” shall be deemed to have
occurred upon the occurrence of a “Change in Control.”

 

A “Change in Control” shall be deemed to have
occurred at such time as:

 

any “person” or “group” (as such terms are
used for purposes of Sections 13(d) and 14(d) of the Exchange Act) is or becomes
the “beneficial owner” (as such term is used in Rule 13d-3 under the Exchange
Act), directly

 

3

 

or indirectly, of fifty percent (50%) or more
of the total voting power of all classes of the Capital Stock of the Company
entitled to vote generally in the election of directors, other than an
acquisition by the Company, any of its Subsidiaries or any of the Company’s
employee benefit plans; or

 

at any time the following persons cease for
any reason to constitute a majority of the Company’s Board of Directors:

 

individuals who on the Issue Date constituted
the Company’s Board of Directors; and

 

any new directors whose election to the
Company’s Board of Directors or whose nomination for election by the Company’s
shareholders was approved by at least a majority of the members of the Board of
Directors, or of the nominating committee thereof, then still in office who
were either directors of the Company on the Issue Date or whose election or
nomination for election was previously so approved; or

 

the Company consolidates with, or merges with
or into, another person or any person consolidates with, or merges with or
into, the Company, in any such event other than pursuant to a transaction in
which the persons that “beneficially owned,” directly or indirectly, the shares
of the Voting Stock of the Company immediately prior to such transaction,
“beneficially own,” directly or indirectly, immediately after such transaction,
shares of the surviving or continuing corporation’s Voting Stock representing
at least a majority of the total voting power of all outstanding classes of the
Voting Stock of the continuing or surviving corporation in substantially the
same proportion as such ownership immediately prior to the transaction; or

 

the sale, lease, transfer or other conveyance
or disposition of all or substantially all of the property and assets of the
Company to any “person” or “group” (as such terms are used in Sections 13(d)
and 14(d) of the Exchange Act), including any group acting for the purpose of
acquiring, holding, or disposing of securities within the meaning of Rule
13d-5(b)(1) under the Exchange Act; or

 

the Company is liquidated or dissolved or the
holders of the Capital Stock of the Company approve any plan or proposal for
the liquidation or dissolution of the Company;

 

provided, however, that a Change in Control will not
be deemed to have occurred if either:

 

(1)                                             the
Closing Sale Price for each of any five (5) Trading Days (whether or not
consecutive) during the ten (10) consecutive Trading Days immediately preceding
the Change in Control is equal to at least one hundred and five percent (105%)
of the Conversion Price in effect on such Trading Day; or

 

(2)                                             in the
case of a merger or consolidation, at least ninety percent (90%) of the
consideration (other than cash payments for fractional shares or

 

4

 

pursuant to statutory appraisal rights) in
the merger or consolidation constituting the Change in Control consists of
common stock and any associated rights 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 such Change in Control),
and, as a result of such transaction or transactions, the Securities become
convertible into such common stock and associated rights.

 

If the Paying Agent (other than the Company)
holds on the Repurchase Date money sufficient to pay the Repurchase Price with
respect to a Security, plus accrued and unpaid interest, if any, payable as
provided in the Indenture upon Repurchase Upon Repurchase Event, then (unless
the Company defaults in the payment of the Repurchase Price or such accrued and
unpaid interest) on and after such date such Security shall be deemed to be no
longer outstanding, interest on such Security shall cease to accrue, and such
Security shall be deemed paid whether or not such Security is delivered to the
Paying Agent.  Thereafter, all rights of
the Holder of such Security shall terminate with respect to such Security,
other than the right to receive the Repurchase Price, plus such accrued and
unpaid interest, in accordance with the Indenture.

 

Conversion.

 

The Securities shall be convertible as follows:

 

Conversion Based on Closing Sale Price of Common Stock.  Subject to earlier Redemption, Repurchase at
Holder’s Option or Repurchase Upon Repurchase Event, Holders may surrender
Securities in integral multiples of $1,000 principal amount for conversion into
shares of the Company’s Common Stock on any Business Day, if the Closing Sale Price of the Company’s Common Stock for at least twenty (20) consecutive
Trading Days in a period of thirty (30) consecutive Trading Days ending on the
Trading Day immediately preceding such Business Day exceeds one hundred and
twenty percent (120%) of the Conversion Price in effect on such thirtieth (30th)
Trading Day.

 

Conversion Upon Satisfaction of Trading Price Condition.  Subject to earlier Redemption, Repurchase at
Holder’s Option or Repurchase Upon Repurchase Event, Securities in integral
multiples of $1,000 principal amount may be surrendered for conversion into
shares of Common Stock any time during the five (5) consecutive Trading Day
period after any ten (10) consecutive Trading Day period (the “Note
Measurement Period”), if
the Trading Price per $1,000 principal amount of the Securities on each Trading
Day during the Note Measurement Period was less than ninety five percent (95%)
of the Conversion Value (as defined below) on such Trading Day; provided,
however,
no Security shall be convertible into shares of Common Stock pursuant to this
paragraph after December 1, 2018 if the Closing Sale Price on the Trading
Day immediately preceding the day on which the Security is surrendered for
conversion pursuant to this paragraph is greater than 100% of the Conversion
Price then in effect but equal to or less than 120% of the Conversion Price
then in effect.  In connection
with any conversion, the Bid Solicitation Agent shall not have any obligation
to determine the Trading Price unless the Company has requested such

 

5

 

determination, and the Company shall have no
obligation to make such request unless a Holder of at least $10,000,000 aggregate
principal amount of Securities provides the Company with reasonable evidence
that the Trading Price per $1,000 principal amount of the Securities would be
less than ninety five percent (95%) of the Conversion Value.  Upon receipt of such evidence, the Company
shall instruct the Bid Solicitation Agent to determine the Trading Price per
$1,000 principal amount of the Securities beginning with the next Trading Day,
and on each successive Trading Day until the Trading Price per $1,000 principal
amount of the Securities is equal to or greater than ninety five percent (95%)
of the Conversion Value.  For purposes
of this paragraph, the “Conversion Value,” on a given Trading Day,
means the product of Closing Sale Price on such Trading Day and the Conversion
Rate in effect on such Trading Day.

 

Conversion Based on Redemption.  A Security, or portion of a Security, which
has been called for Redemption pursuant to paragraph 6 may be surrendered in integral
multiples of $1,000 principal amount for conversion into shares of Common
Stock; provided,
however,
that such Security or portion thereof may be surrendered for conversion
pursuant to this paragraph only until 5:00 p.m., New York City time, on the
third (3rd) Business Day immediately preceding the Redemption Date.

 

Conversion Upon Certain Distributions.  If:

 

(A)            other than pursuant to a stockholder rights
plan, the Company distributes to all holders of Common Stock rights or warrants
entitling them to purchase shares of Common Stock at a purchase price per share
of Common Stock that is less than the “current market price” (as defined in Section 10.06(g)
of the Indenture) per share of Common Stock on the declaration date of
such distribution; or

 

(B)              the
Company distributes to all holders of Common Stock cash or other assets, debt
securities or rights to purchase the Company’s securities, which distribution
has a value per share of Common Stock (as determined in good faith by the Board
of Directors whose determination shall be conclusive and described in a Board Resolution)
exceeding fifteen percent (15%) of the Closing Sale Price on the Trading Day
immediately preceding the date of declaration for such distribution,

 

then, in each
case, the Company shall notify, in writing, Holders of such distribution at
least twenty (20) days prior to the “ex” date for such distribution, after
which time Holders shall have the right to surrender their Securities for
conversion into shares of Common Stock at any time until the earlier of the
close of business on the Business Day immediately preceding such “ex” date or
the date of announcement by the Company that such distribution shall not take
place.  For purposes of this paragraph,
the term “ex” date means the first date on which the Common Stock trades the
regular way on the relevant exchange or in the relevant market from which the
Closing Sale Price was obtained without the right to receive such distribution.

 

6

 

Conversion Upon Occurrence of Certain Corporate Transactions.  If the Company is a party to a
consolidation, merger or binding share exchange pursuant to which the Common
Stock would be converted or exchanged into cash, securities or other property,
or a transfer, sale or conveyance of all or substantially all of the property
or business of the Company, the Securities may be surrendered in integral
multiples of $1,000 principal amount for conversion into shares of Common Stock
at any time from and after the date which is fifteen (15) days prior to the
date announced by the Company as the anticipated effective date of such
transaction until the date that is fifteen (15) days after the actual effective
date of such transaction, and, at the effective date of such transaction, the
right to convert a Security into shares of Common Stock will be deemed to have
changed into a right to convert it into the kind and amount of cash, securities
or other property which the Holder thereof would have received if such Holder
had converted such Holder’s Security immediately prior to the transaction,
assuming that such Holder would not have exercised any rights of election that
such Holder would have had as a holder of Common Stock to select a particular
type of consideration.

 

The initial Conversion Rate is 14.0366 shares
of Common Stock per $1,000 principal amount of Securities, or an effective
initial Conversion Price of approximately $71.24 per share, subject to
adjustment in the event of certain circumstances as specified in the
Indenture.  The Company will deliver a
check in lieu of any fractional share. 
On conversion, no payment or adjustment for any unpaid and accrued
interest on, or liquidated damages with respect to, the Securities will be
made.  If a Holder surrenders a Security
for conversion after the close of business on the record date for the payment
of an installment of interest and prior to the related interest payment date,
such Security, when surrendered for conversion, must be accompanied by payment
to the Conversion Agent on behalf of the Company of an amount equal to the interest
thereon which the registered Holder at the close of business on such record
date is to receive on the portion of such Security that is converted, unless
such Security has been called for Redemption as described in the Indenture and
except to the extent of any unpaid interest that is overdue and shall have
accrued prior to the interest payment date immediately preceding the Conversion
Date.

 

To convert a Security, a Holder must (1)
complete and sign the Conversion Notice, with appropriate signature guarantee,
on the back of the Security, (2) deliver the Security and completed Conversion
Notice to a Conversion Agent, (3) furnish appropriate endorsements and transfer
documents if required by the Registrar or Conversion Agent, (4) pay the amount
of interest, if any, the Holder must pay as provided in the last sentence of
the immediately preceding paragraph and (5) pay any transfer or similar tax if
required pursuant to the Indenture.  A
Holder may convert a portion of a Security if the portion is $1,000 principal
amount or an integral multiple of $1,000 principal amount.  A Security as to which a Purchase Notice has
been duly delivered electing that such Security be repurchased by the Company
pursuant to Section 3.08 or Section 3.09 of the Indenture, as the case
may be, may be converted pursuant to Article X of the Indenture and this paragraph 10
only if such Purchase Notice has been withdrawn in accordance with
the Indenture prior to 5:00 p.m., New York City time, on the third (3rd)
Business Day prior to the applicable Option Purchase Date or the Repurchase
Date, as the case may be (or such later time as may be required by law).

 

7

 

Any shares of Common Stock issued upon
conversion of a Security shall bear the Private Placement Legend until after
the second anniversary of the later of the Issue Date and the last date on
which the Company or any Affiliate was the owner of such shares or the Security
(or any predecessor security) from which such shares were converted (or such
shorter period of time as permitted by Rule 144(k) under the Securities Act or
any successor provision thereunder) (or such longer period of time as may be
required under the Securities Act or applicable state securities laws, as set
forth in an Opinion of Counsel, unless otherwise agreed by the Company and the
Holder thereof).

 

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.  The transfer of Securities may
be registered and Securities may be exchanged as provided in the
Indenture.  The Registrar may require a
Holder, among other things, to furnish appropriate endorsements and transfer
documents.  No service charge shall be
made for any such registration of transfer or exchange, but the Company may
require payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith. 
The Registrar need not exchange or register the transfer of any Security
selected for Redemption, in whole or in part, except the unredeemed portion of
Securities to be redeemed in part. 
Also, it need not exchange or register the transfer of any Securities
for a period of fifteen (15) days before the mailing of a notice of Redemption
and in certain other circumstances provided in the Indenture.

 

Persons
Deemed Owners. 
The registered Holder of a Security may be treated as the owner of such
Security for all purposes.

 

Merger
or Consolidation. 
The Company shall not consolidate with, or merge with or into, or sell,
convey, transfer, lease or otherwise dispose of all or substantially all of its
properties and assets to, another person, whether in a single or series of
related transactions, unless (i) such other person is a corporation organized
under the laws of the United States, any State thereof or the District of
Columbia; (ii) such person assumes by supplemental indenture all the
obligations of the Company, under the Securities and the Indenture; and (iii)
immediately after giving effect to the transaction, no Default or Event of
Default shall exist.

 

Amendments,
Supplements and Waivers.  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
any existing Default or Event of Default may be waived with the consent of the
Holders of a majority in aggregate principal amount of the Securities then outstanding.  In accordance with the terms of the
Indenture, without notice to or the consent of any Securityholder, the
Indenture or the Securities may be amended or supplemented to (i) comply with Sections 5.01
and 10.12 of the Indenture; (ii) make any changes or modifications
to the Indenture necessary in connection with the registration of the
Securities under the Securities Act pursuant to the Registration Rights
Agreement or the qualification of the Indenture under the TIA; (iii) secure the
obligations of the Company in respect of the Securities; (iv) add to covenants
of the Company described in the Indenture for the benefit of Securityholders;
(v) surrender any right or power conferred upon the Company; (vi) make
provisions with respect to adjustments to the Conversion Rate as required by
the Indenture or increase the Conversion Rate in accordance with the Indenture;
(vii) to add additional
Events of Default with respect to the Securities; and (viii) to cure any ambiguity or

 

8

 

correct or supplement any provision in the Indenture that may be
defective or inconsistent with any other provision therein, or to make any
other provisions with respect to matters or questions arising thereunder that
the Company and the Trustee deem necessary or desirable and which shall not be
inconsistent with the provisions of the Indenture, provided that such amendment
or supplement does not adversely affect the interests of Holders in any
material respect.

 

Defaults
and Remedies. 
Subject to the provisions of the Indenture, an Event of Default includes
the occurrence of any of the following: (i) default in payment of principal,
whether at maturity, upon Redemption, on an Option Purchase Date with respect
to a Repurchase at Holder’s Option, on a Repurchase Date with respect to a
Repurchase Upon Repurchase Event or otherwise; (ii) default for thirty (30)
days in payment of interest or liquidated damages; (iii) failure by the Company
for sixty (60) days after notice is given, as specified in the Indenture, to it
to comply with any other term, covenant or agreement set forth in the Securities
or the Indenture; (iv) the acceleration of certain Indebtedness of the Company
or any of its Subsidiaries; and (v) certain events of bankruptcy or insolvency
involving the Company or its Significant Subsidiaries.  If any Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in aggregate principal
amount of the Securities then outstanding may declare all the Securities to be
due and payable immediately, except as provided in the Indenture.  If an Event of Default specified in Section 6.01(v)
or (vi) of the Indenture with respect to the Company occurs, the
principal of and accrued interest on all the Securities shall ipso facto become
and be immediately due and payable without any declaration or other act on the
part of the Trustee or any Securityholder. 
Securityholders may not enforce the Indenture or the Securities except
as provided in the Indenture.  The
Trustee may require from the Holders indemnity reasonably satisfactory to the
Trustee before it enforces the Indenture or the Securities.  Subject to certain limitations, Holders of a
majority in principal amount of the Securities then outstanding may direct the
Trustee in its exercise of any trust or power. 
The Trustee may withhold from Securityholders notice of any continuing
Default or Event of Default (except a Default or Event of Default in payment)
if, and so long as it in good faith determines that, withholding the notice is
in the best interests of Securityholders. 
The Company must furnish an annual compliance certificate to the
Trustee.

 

Registration
Rights.  The
Holders are entitled to registration rights as set forth in the Registration
Rights Agreement.  The Holders shall be
entitled to receive liquidated damages in certain circumstances, all as set
forth in the Registration Rights Agreement.

 

Trustee
Dealings with the Company.  The Trustee under the Indenture, or any banking institution
serving as successor Trustee thereunder, in its individual or any other
capacity, may make loans to, accept deposits from, and perform services for the
Company or its Affiliates, and may otherwise deal with the Company or its
Affiliates, as if it were not Trustee.

 

No
Recourse Against Others.  No past, present or future director, officer, employee or
shareholder, as such, of the Company shall have any liability for any
obligations of the Company under the Securities or the Indenture or for any
claim based on, in respect of or by reason of such obligations or their
creation.  Each Securityholder by
accepting a Security waives and releases all such liability.  The waiver and release are part of the
consideration for the issue of the Securities.

 

9

 

Authentication.  This Security shall not be valid until
authenticated by the manual signature of the Trustee or an authenticating
agent.

 

Abbreviations.  Customary abbreviations may be used in the
name of a Securityholder or an assignee, such as: TEN COM (= tenants in
common), TEN ENT (= tenants by the entirety), JT TEN (= joint tenants with
right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (Uniform Gifts to Minors Act).

 

THE COMPANY WILL FURNISH TO ANY
SECURITYHOLDER UPON WRITTEN REQUEST AND WITHOUT CHARGE A COPY OF THE
INDENTURE.  REQUESTS MAY BE MADE
TO:

 

Genzyme
Corporation

500 Kendall
Street

Cambridge, MA
02142

 

10

 

[FORM OF ASSIGNMENT]

 

	
  I or we assign to

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PLEASE INSERT SOCIAL SECURITY OR OTHER
  IDENTIFYING NUMBER

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (please print or type name and address)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  the within Security and all rights
  thereunder, and hereby irrevocably constitutes and appoints

  
	
   

  
	
   

  
	
  Attorney to transfer the Security on the
  books of the Company with full power of substitution in the premises.

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NOTICE: 
  The signature on this assignment must correspond with the name as it
  appears upon the face of the within Security in every particular without
  alteration or enlargement or any change whatsoever and be guaranteed by a
  guarantor institution participating in the Securities Transfer Agents
  Medallion Program or in such other guarantee program acceptable to the
  Trustee.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  In connection with any transfer of this
  Security occurring prior to the date which is the earlier of (i) the date of
  the declaration by the Commission of the effectiveness of a registration
  statement under the Securities Act of 1933, as amended, covering resales of
  this Security (which effectiveness shall not have been suspended or
  terminated at the date of the transfer) and (ii) the Resale Restriction
  Termination Date, the undersigned confirms that it is making, and it has not
  utilized any general solicitation or general advertising in connection with,
  the transfer:

  
						

 

[Check One]

 

 

	
  (1)

  	
   

  	
  o

  	
  to the Company or any Subsidiary thereof;
  or

  
	
   

  	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
  o

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

  
	
   

  	
   

  	
   

  	
   

  
	
  (3)

  	
   

  	
  o

  	
  pursuant to the exemption from registration
  provided by Rule 144 under the Securities Act of 1933, as amended; or

  
	
   

  	
   

  	
   

  	
   

  
	
  (4)

  	
   

  	
  o

  	
  pursuant to the exemption from registration
  under the Securities Act of 1933, as amended, other than under Rule 144A or
  Rule 144;

  
	
   

  	
   

  	
   

  	
   

  
	
  (5)

  	
   

  	
  o

  	
  pursuant to an effective registration
  statement under the Securities Act of 1933, as amended.

  

 

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

 

o                       The
transferee is an Affiliate of the Company. 
(If the Security is transferred to an Affiliate, the restrictive legend
must remain on the Security for at least two (2) years following the date of
the transfer.)

 

Unless one of the items is checked, the
Trustee will refuse to register any of the Securities evidenced by this
certificate in the name of any person other than the registered Holder thereof;
provided,
however,
that if item (3) or (4) is checked, the Company or the Trustee may
require, prior to registering any such transfer of the Securities, in their
sole discretion, such written legal opinions, certifications and other
information as the Trustee or the Company have reasonably requested to confirm
that such transfer is being made pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the Securities Act
of 1933, as amended.

 

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

 

	
  Dated:

  	
   

  	
   

  	
  Signed:

  	
   

  
	
   

  	
   

  	
  (Sign exactly as name appears on the

  other side of this Security)

  
	
   

  	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  
						

 

 

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

 

The undersigned represents and warrants that
it is purchasing this Security for its own account or an account with respect
to which it exercises sole investment discretion and that it and any such
account is a “qualified institutional buyer” within the meaning of Rule 144A
under the Securities Act of 1933, as amended, and is aware that the sale to it
is being made in reliance on Rule 144A and acknowledges that it has received
such information regarding the Company as the undersigned has requested
pursuant to Rule 144A and acknowledges that the transferor is relying upon the undersigned’s
foregoing representations in order to claim the exemption from registration
provided by Rule 144A.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NOTICE: 
  To be executed by an executive officer

  

 

 

CONVERSION NOTICE

 

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

  
	
   

  
	
   

  
	
  To convert only part of this Security,
  state the principal amount to be converted (must be in multiples of $1,000):

  
	
   

  
	
  $                    

  
	
   

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

  
	
   

  
	
   

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

  
	
   

  
	
   

  
	
   

  
	
   

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

  
	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  	
  Signature(s):

  	
   

  
	
   

  
	
   

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
  Signature(s) guaranteed by:

  	
   

  
	
  (All signatures must be guaranteed by a
  guarantor institution participating in the Securities Transfer Agents
  Medallion Program or in such other guarantee program acceptable to the
  Trustee.)

  
							

 

 

PURCHASE NOTICE

 

Certificate No. of Security:                          

 

Check the appropriate box:

 

	
  o

  	
   

  	
  I elect to have the following principal amount of
  this Security purchased by the Company pursuant to Section 3.08 of the
  Indenture:

  
	
   

  	
   

  	
   

  
	
  $                                                                     

  
	
  (in an integral multiple
  of $1,000)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If you checked the above box, then check the appropriate boxes below:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.                                       Check the box below corresponding to the
  date on which you elect to have the principal amount of this Security
  specified above purchased by the Company:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o                                    December 1, 2008

  
	
   

  	
   

  	
  o                                    December 1, 2013

  
	
   

  	
   

  	
  o                                    December 1, 2018

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2.                                       In the event the Company elects to pay the
  Option Purchase Price, in whole or in part, in shares of Common Stock, but
  the Option Purchase Price is ultimately to be paid entirely in cash because
  any of the conditions to payment of the Option Purchase Price in shares of
  Common Stock is not satisfied before the Option Purchase Date, you elect:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o                                    to withdraw this Purchase Notice as to the
  following principal amount of this Security:

  
	
   

  	
   

  	
   

  
	
  $                                                                     

  
	
  (in an integral multiple
  of $1,000)

  
	
   

  	
   

  	
   

  
	
  or

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o                                    to receive cash in respect of the Option
  Purchase Price for that portion of the principal amount of this Security
  which I have elected above to be purchased by the Company pursuant to Section 3.08
  of the Indenture.

  
	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  I elect to have the following principal amount of
  this Security purchased by the Company pursuant to Section 3.09 of the Indenture:

  
	
   

  	
   

  	
   

  
	
  $                                                                     

  
	
  (in an integral multiple
  of $1,000)

  

 

	
  Date:

  	
   

  	
   

  	
  Signature(s):

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature(s) guaranteed by:

  	
   

  
	
   

  	
  (All signatures must be guaranteed by a guarantor institution
  participating in the Securities Transfer Agents Medallion Program or in such
  other guarantee program acceptable to the Trustee.)

  

 

 

SCHEDULE A

 

SCHEDULE OF
EXCHANGES OF INTERESTS IN THE GLOBAL SECURITY

 

The following exchanges of a part of this
Global Security for an interest in another Global Security or for Securities in
certificated form, have been made:

 

	
  Date of Exchange

  	
   

  	
  Amount of decrease

  in Principal amount

  of this Global

  Security

  	
   

  	
  Amount of increase

  in Principal amount

  of this Global

  Security

  	
   

  	
  Principal amount of

  this Global

  Security following

  such decrease

  (or increase)

  	
   

  	
  Signature or

  authorized signatory

  of Trustee or Note

  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

6Exhibit
10.1

 

REGISTRATION RIGHTS AGREEMENT

 

THIS
REGISTRATION RIGHTS AGREEMENT (the “Agreement”) is made and entered into
as of December 9, 2003, by and among Genzyme Corporation, a Massachusetts
corporation (the “Company”), and UBS Securities LLC and the other
Initial Purchasers named in the Purchase Agreement referred to below
(collectively, the “Initial Purchasers”) pursuant to that certain
Purchase Agreement, dated December 4, 2003 (the “Purchase Agreement”),
among the Company and the Initial Purchasers.

 

In order to
induce the Initial Purchasers to enter into the Purchase Agreement, the Company
has agreed to provide the registration rights set forth in this Agreement.  The execution of this Agreement is a
condition to the closing under the Purchase Agreement.

 

The Company
and the Initial Purchasers agree (i) for the benefit of the Initial Purchasers,
(ii) for the benefit of the beneficial owners (including the Initial Purchaser)
from time to time of the Notes (as defined herein) and the beneficial owners
from time to time of the Underlying Common Stock (as defined herein) issued
upon conversion of the Notes (each of the foregoing a “Holder” and
together the “Holders”) and (iii) for the benefit of the Company, as
follows:

 

Section 1.  Definitions.  Capitalized terms used herein without
definition shall have the respective meanings set forth in the Purchase
Agreement.  As used in this Agreement,
the following terms shall have the following meanings:

 

“Affiliate”
means with respect to any specified person, an “affiliate,” as defined in Rule
144, of such person.

 

“Amendment
Effectiveness Deadline Date” has the meaning set forth in Section 2(d)
hereof.

 

“Applicable
Conversion Price” means, as of any date of determination, $1,000 principal
amount at maturity of Notes divided by the Conversion Rate then in effect as of
the date of determination or, if no Notes are then outstanding, the Conversion
Rate that would be in effect were Notes then outstanding.

 

“Business
Day” means each day on which the New York Stock Exchange is open for
trading.

 

“Common
Stock” means the shares of common stock, designated as Genzyme General
Stock, $0.01 par value per share, of the Company and any other shares of
capital stock as may constitute “Common Stock” for purposes of the
Indenture, including the Underlying Common Stock.

 

“Conversion
Rate” has the meaning assigned to such term in the Indenture.

 

“Damages
Accrual Period” has the meaning set forth in Section 2(e) hereof.

 

“Damages
Payment Date” means each interest payment date under the Indenture in the
case of Notes, and each June 1 and December 1 in the case of the
Underlying Common Stock.

 

 

“Effectiveness
Deadline Date” has the meaning set forth in Section 2(a) hereof.

 

“Effectiveness
Period” means a period that terminates when there are no Registrable
Securities outstanding.

 

“Event”
has the meaning set forth in Section 2(e) hereof.

 

“Event Date”
has the meaning set forth in Section 2(e) hereof.

 

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

 

“Filing
Deadline Date” has the meaning set forth in Section 2(a) hereof.

 

“Form S-1”
means Form S-1 under the Securities Act.

 

“Form S-3”
means Form S-3 under the Securities Act.

 

“Holder”
has the meaning set forth in the preamble hereto.

 

“Indenture”
means the Indenture, dated as of December 9, 2003, between the Company and
the Trustee, pursuant to which the Notes are being issued.

 

“Initial
Purchasers” has the meaning set forth in the preamble hereto.

 

“Initial
Shelf Registration Statement” has the meaning set forth in
Section 2(a) hereof.

 

“Issue Date”
means the first date of original issuance of the Notes.

 

“liquidated
damages” has the meaning set forth in Section 2(e).

 

“Liquidated
Damages Amount” has the meaning set forth in Section 2(e) hereof.

 

“Material
Event” has the meaning set forth in Section 3(i) hereof.

 

“Notes”
means the 1.25% Convertible Senior Notes due 2023 of the Company to be
purchased pursuant to the Purchase Agreement.

 

“Notice and
Questionnaire” means a written notice and questionnaire delivered to the
Company containing substantially the information called for by the Selling
Securityholder Notice and Questionnaire attached as Annex A to the Offering
Memorandum dated December 4, 2003 relating to the Notes.

 

“Notice
Holder” means, on any date, any Holder that has delivered a Notice and
Questionnaire to the Company on or prior to such date, so long as all of such
Holder’s Registrable Securities that have been registered for resale pursuant
to a Notice and Questionnaire have not been sold in accordance with a Shelf
Registration Statement.

 

2

 

“Prospectus”
means the prospectus included in any Shelf Registration Statement (including,
without limitation, a prospectus that discloses information previously omitted
from a prospectus filed as part of an effective registration statement in
reliance upon Rule 415 promulgated under the Securities Act), as amended or
supplemented by any amendment or prospectus supplement, including
post-effective amendments, and all materials incorporated by reference or
deemed to be incorporated by reference in such Prospectus.

 

“Purchase
Agreement” has the meaning set forth in the preamble hereof.

 

“Record
Holder” means (i) with respect to any Damages Payment Date relating to any
Note as to which any Liquidated Damages Amount has accrued, the Notice Holder
that was a holder of record of such Note at the close of business on the record
date with respect to the interest payment date under the Indenture on which
such Damages Payment Date shall occur and (ii) with respect to any Damages
Payment Date relating to the Underlying Common Stock as to which any Liquidated
Damages Amount has accrued, a Notice Holder that was the registered holder of
such Underlying Common Stock at the close of business on (A) May 15 with
respect to a Damages Payment Date that is on June 1 or (B)
November 15 with respect to a Damages Payment Date that is on
December 1.

 

“Registrable
Securities” means the Notes until such Notes have been converted into the
Underlying Common Stock and, at all times the Underlying Common Stock and any
securities into or for which such Underlying Common Stock has been converted,
and any security issued with respect thereto upon any stock dividend, split or
similar event (each of the foregoing, a “Covered Security”) until, in
the case of any such security, the earliest of (w) the date on which such
security has been effectively registered under the Securities Act and disposed
of in accordance with the Registration Statement relating thereto; (x) the date such security has been
publicly sold pursuant to Rule 144 or any successor provision thereto; (y) the
date on which such security may
be resold without restriction pursuant to Rule 144(k) or any successor
provision thereto; or (z) the date that is two (2) years after the later of the
Issue Date or the latest “additional time of purchase” (as defined in the
Purchase Agreement).

 

“Registration
Expenses” has the meaning set forth in Section 5 hereof.

 

“Registration
Statement” means any registration statement of the Company that covers any
of the Registrable Securities pursuant to the provisions of this Agreement,
including any Prospectus forming, or deemed to form, a part thereof, and any
amendments and supplements to such registration statement, including
post-effective amendments, all exhibits and all materials incorporated by
reference or deemed to be incorporated by reference in such registration
statement.

 

“Rule 144”
means Rule 144 under the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the SEC.

 

“Rule 144A”
means Rule 144A under the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the SEC.

 

“SEC”
means the Securities and Exchange Commission.

 

3

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and
regulations promulgated by the SEC thereunder.

 

“Shelf
Registration Statement” means the Initial Shelf Registration Statement and
any Subsequent Shelf Registration Statement.

 

“Subsequent
Shelf Registration Statement” has the meaning set forth in
Section 2(b) hereof.

 

“Subsequent
Shelf Registration Statement Effectiveness Deadline Date” has the meaning
set forth in Section 2(d) hereof.

 

“Suspension
Notice” has the meaning set forth in Section 3(i) hereof.

 

“Suspension
Period” has the meaning set forth in Section 3(i) hereof.

 

“TIA”
means the Trust Indenture Act of 1939, as amended.

 

“Trustee”
means U.S. Bank National Association, the trustee under the Indenture.

 

“Underlying
Common Stock” means the Common Stock into which the Notes are convertible
or issued upon any such conversion.

 

Section 2.  Shelf Registration.  (a) The Company shall prepare and file or
cause to be prepared and filed with the SEC, by the date (the “Filing
Deadline Date”) that is one hundred and twenty (120) days after the Issue
Date, a Registration Statement for an offering to be made on a delayed or
continuous basis pursuant to Rule 415 of the Securities Act registering the
resale from time to time by Holders thereof of all of the Registrable
Securities (or, if registration of Registrable Securities not held by Notice
Holders is not permitted by the rules and regulations of the SEC, then
registering all Registrable Securities held by Notice Holders) (the “Initial
Shelf Registration Statement”).  The
Initial Shelf Registration Statement shall be on Form S-1 or Form S-3 or
another appropriate form permitting registration of such Registrable Securities
for resale by such Holders in accordance with the methods of distribution
indicated in their Notice and Questionnaires and set forth in the Initial Shelf
Registration Statement (provided, however, that in no event will
such methods of distribution take the form of an underwritten offering of
Registrable Securities without the Company’s prior consent, which the Company
may withhold at its sole discretion).  The
Company shall use its reasonable efforts to cause the Initial Shelf
Registration Statement to be declared effective under the Securities Act by the
date (the “Effectiveness Deadline Date”) that is two hundred and ten
(210) days after the Issue Date, and to keep the Initial Shelf Registration
Statement (or any Subsequent Shelf Registration Statement) continuously
effective under the Securities Act until the expiration of the Effectiveness
Period (except to the extent permitted under Section 3(i)).  At the time the Initial Shelf Registration
Statement becomes effective under the Securities Act, each Holder that became a
Notice Holder on or before the fifth (5th) Business Day prior to the date of
such effectiveness shall be named as a selling securityholder in the Initial
Shelf Registration Statement and the related Prospectus in such a manner as to
permit such Notice Holder to deliver such Prospectus to purchasers of

 

4

 

Registrable Securities in accordance with the Securities Act, assuming
the accuracy of the information in such Notice Holder’s Notice and
Questionnaire.

 

(b)                                 If
the Initial Shelf Registration Statement or any Subsequent Shelf Registration
Statement ceases to be effective for any reason at any time during the
Effectiveness Period (except to the extent permitted under Section 3(i)),
the Company shall use its reasonable efforts to obtain the prompt withdrawal of
any order suspending the effectiveness thereof, and in any event shall within
thirty (30) days of such cessation of effectiveness amend the Shelf
Registration Statement in a manner reasonably expected to obtain the withdrawal
of the order suspending the effectiveness thereof, or file an additional Shelf
Registration Statement covering all of the securities that as of the date of
such filing are Registrable Securities (or, if registration of Registrable
Securities not held by Notice Holders is not permitted by the rules and
regulations of the SEC, then registering all Registrable Securities held by
Notice Holders as of such date) (a “Subsequent Shelf Registration Statement”).  If a Subsequent Shelf Registration Statement
is filed, the Company shall use its reasonable efforts to cause the Subsequent
Shelf Registration Statement to become effective as promptly as is practicable
after such filing, but in no event later than the Subsequent Shelf Registration
Statement Effectiveness Deadline, and to keep such Shelf Registration Statement
(or Subsequent Shelf Registration Statement) continuously effective until the
end of the Effectiveness Period (except to the extent permitted under
Section 3(i)).

 

(c)                                  The
Company shall supplement and amend any Shelf Registration Statement if required
by the rules, regulations or instructions applicable to the registration form
used by the Company for such Shelf Registration Statement, if required by the
Securities Act.

 

(d)                                 (i)  Each Holder of Registrable Securities agrees
that if such Holder wishes to sell Registrable Securities pursuant to a Shelf
Registration Statement and related Prospectus, it will do so only in accordance
with this Section 2(d) and Section 3(i).  Each Holder of Registrable Securities wishing to sell Registrable
Securities pursuant to a Shelf Registration Statement and related Prospectus
agrees to deliver a duly completed and executed Notice and Questionnaire to the
Company prior to any attempted or actual distribution of Registrable Securities
under a Shelf Registration Statement. 
With respect to any Holder who delivers a duly completed and executed
Notice and Questionnaire after the fifth (5th) Business Day before the date the
Initial Shelf Registration Statement becomes effective under the Securities
Act, the Company shall, as promptly as reasonably practicable after the date a
Notice and Questionnaire is delivered,

 

(A) if
required by applicable law, file with the SEC a supplement to the related
Prospectus or a post-effective amendment to the Shelf Registration Statement or
a Subsequent Shelf Registration Statement and any necessary supplement or
amendment to any document incorporated therein by reference to the applicable
Shelf Registration Statement and file any other required document with the SEC
so that the Holder delivering such Notice and Questionnaire is named as a
selling securityholder in a Shelf Registration Statement and the related
Prospectus in such a manner as to permit such Holder to deliver such Prospectus
to purchasers of the Registrable Securities in accordance with the Securities
Act; provided, however, that (i) any supplement to a Prospectus
filed pursuant to this Section 2(d)(i)(A) shall, subject to
Section 2(d)(i)(E), be filed within five (5) Business Days after receipt
of the related Notice and Questionnaire (provided, that with respect to any
Notice and Questionnaire received by the Company after the date that is thirty
(30) days after the date the Initial Shelf Registration

 

5

 

Statement becomes effective under the Securities Act, the Company shall
not be required to file more than one (1) such supplement during any twenty
(20) day period) and (ii) if a post-effective amendment or a Subsequent Shelf
Registration Statement is required by the rules and regulations of the SEC in
order to permit resales by Notice Holders who were not named as selling
securityholders in the Initial Shelf Registration Statement as of the time it
became effective under the Securities Act, the Company shall not be required to
file more than one (1) post-effective amendment or Subsequent Shelf Registration
Statement for such purpose in any three (3) month period;

 

(B) if the
Company shall file a post-effective amendment to the Shelf Registration
Statement or file a Subsequent Shelf Registration Statement, it shall use its
reasonable efforts to cause such post-effective amendment or Subsequent Shelf
Registration Statement, as the case may be, to become effective under the
Securities Act as promptly as is practicable, but in any event by the date (the
“Amendment Effectiveness Deadline Date” in the case of a post-effective
amendment or the “Subsequent Shelf Registration Statement Effectiveness
Deadline Date” in the case of a Subsequent Shelf Registration Statement)
that is forty five (45) days after the date such post-effective amendment or
Subsequent Shelf Registration Statement, as the case may be, is required by
this Section 2(d) to be filed;

 

(C) the
Company shall provide such Holder such number of copies of any documents filed
pursuant to Section 2(d)(i)(A) as such Holder may reasonably request;

 

(D) the Company
shall notify each Holder named as a selling securityholder in the applicable
Prospectus as promptly as practicable after the effectiveness under the
Securities Act of any post-effective amendment or Subsequent Shelf Registration
Statement filed pursuant to Section 2(d)(i)(A);

 

(E) if a
Notice and Questionnaire is delivered during a Suspension Period, or a
Suspension Period is put into effect within five (5) Business Days after such
delivery date, the Company shall so inform the Holder delivering such Notice
and Questionnaire and shall, subject to the limitations set forth above in this
Section 2(d), take the actions set forth in clauses (A), (B) and (C) above
within five (5) Business Days after expiration of the Suspension Period in
accordance with Section 3(i); and

 

(F) if under
the Securities Act, the Company has more than one option as to the type or
manner of making any such filing, the Company shall make the required filing or
filings in the manner or of a type that the Company reasonably expects to
result in the earliest availability of a Prospectus for effecting resales of
Registrable Securities.

 

(ii)  Notwithstanding anything contained herein to
the contrary, the Company shall be under no obligation to name any Holder that
is not a Notice Holder as a selling securityholder in any Shelf Registration
Statement or related Prospectus; provided, however, that any
Holder that becomes a Notice Holder pursuant to the provisions of this
Section 2(d) (whether or not such Holder was named as a selling securityholder
in the Initial Shelf Registration Statement as of the time it became effective
under the Securities Act) shall be named as a selling securityholder in a Shelf
Registration Statement or related Prospectus in accordance with the
requirements of this Section 2(d).

 

6

 

(e)                                  The
parties hereto agree that the Holders of Registrable Securities will suffer
damages, and that it would not be feasible to ascertain the extent of such
damages with precision, if (i) the Initial Shelf Registration Statement has not
been filed on or prior to the Filing Deadline Date, (ii) the Initial Shelf
Registration Statement has not been declared effective under the Securities Act
on or prior to the Effectiveness Deadline Date, (iii) either a supplement to a
prospectus, a post-effective amendment or a Subsequent Shelf Registration
Statement is required to be filed and fails to be filed within the prescribed
period set forth in Section 2(d) (the applicable date being an “Additional
Filing Deadline Date”) or in the case of a post-effective amendment or a
Subsequent Shelf Registration Statement, such post-effective amendment or
Subsequent Registration Statement does not become effective under the
Securities Act by the Amendment Effectiveness Deadline Date or the Subsequent
Shelf Registration Statement Effectiveness Deadline Date, as the case may be,
(iv) the Initial Shelf Registration Statement or any Subsequent Registration
Statement is filed and declared effective under the Securities Act but shall
thereafter cease to be effective (without being succeeded by a new registration
statement declared effective under the Securities Act the same day) or usable
under the Securities Act for the offer and sale of Registrable Securities for a
period of time (including any Suspension Period) which shall exceed forty five
(45) days in the aggregate in any three (3) month period or ninety (90) days in
the aggregate in any twelve (12) month period or (v) the Initial Registration
Statement and the related Prospectus, at the time the Initial Registration
Statement shall be declared effective under the Securities Act, fail to name
each Holder that became a Notice Holder on or before the fifth (5th) Business
Day prior to the date the Initial Registration Statement became effective under
the Securities Act as a selling securityholder in such a manner as to permit
such Holder to deliver such Prospectus to purchasers of Registrable Securities
in accordance with the Securities Act (each of the events of a type described
in any of the foregoing clauses (i) through (v) are individually referred to
herein as an “Event,” and the Filing Deadline Date in the case of clause
(i), the Effectiveness Deadline Date in the case of clause (ii), the Additional
Filing Deadline Date, the Amendment Effectiveness Deadline Date or the
Subsequent Shelf Registration Statement Effectiveness Deadline Date, as the
case may be, in the case of clause (iii), the date on which the duration of the
ineffectiveness or unusability of the Shelf Registration Statement in any
period exceeds the number of days permitted by clause (iv) hereof in the case
of clause (iv), and the date the Initial Registration Statement shall become
effective under the Securities Act in the case of clause (v), being referred to
herein as an “Event Date”). 
Events shall be deemed to continue until the following dates with
respect to the respective types of Events: (A) the date the Initial Shelf
Registration Statement is filed in the case of an Event of the type described
in clause (i); (B) the date the Initial Shelf Registration Statement becomes
effective under the Securities Act in the case of an Event of the type
described in clause (ii); (C) the date a prospectus supplement or a
post-effective amendment to the Initial Shelf Registration Statement or
Subsequent Shelf Registration Statement, whichever is required, is filed or
becomes effective under the Securities Act, as the case may be, in the case of
an Event of the type described in clause (iii); (D) the date the Initial Shelf
Registration Statement or the Subsequent Shelf Registration Statement, as the
case may be, becomes effective or usable again, or the date another Subsequent
Shelf Registration Statement is filed pursuant to Section 2(b) and becomes
effective under the Securities Act, in the case of an Event of the type
described in clause (iv); or (E) the date a prospectus supplement to the
Initial Shelf Registration Statement is filed with the SEC, or a post-effective
amendment to the Initial Shelf Registration Statement is declared effective
under the Securities Act, which prospectus supplement or post-effective
amendment

 

7

 

names as selling securityholders, in such a manner as to permit them to
deliver the related Prospectus to purchasers of Registrable Securities in
accordance with the Securities Act, all Holders entitled as herein provided to
be so named, in the case of an Event of the type described in clause (v); provided,
however, that all Events will be deemed to be suspended during any
Suspension Period, unless the duration of such Suspension Period exceeds forty
five (45) days in any three (3) month period or an aggregate of ninety (90)
days in any twelve (12) month period).

 

Accordingly,
commencing on (and including) any Event Date and ending on (but excluding) the
next date on which there are no Events that have occurred and are continuing (a
“Damages Accrual Period”), the Company agrees to pay, as liquidated
damages (“liquidated damages”) and not as a penalty, an amount (the “Liquidated
Damages Amount”) at the rate described below, payable periodically on each
Damages Payment Date to Record Holders, to the extent of, for each such Damages
Payment Date, accrued and unpaid Liquidated Damages Amount to (but excluding)
such Damages Payment Date (or, if the Damages Accrual Period shall have ended
prior to such Damages Payment Date, the date of the end of the Damages Accrual
Period); provided that any Liquidated Damages Amount accrued with
respect to any Note or portion thereof called for redemption on a redemption
date or converted into Underlying Common Stock on a conversion date prior to
the Damages Payment Date, shall, in any such event, be paid instead to the
Holder who submitted such Note or portion thereof for redemption or conversion
on the applicable redemption date or conversion date, as the case may be, on
such date (or promptly following the conversion date, in the case of
conversion).  The Liquidated Damages Amount
shall accrue at a rate per annum equal to one quarter of one percent (0.25%)
for the first ninety (90) day period from the Event Date and thereafter at a
rate per annum equal to one half of one percent (0.50%), of (i) the aggregate
principal amount of the Notes held by such Record Holders or, without
duplication, (ii) in the case of Notes that have been converted into Underlying
Common Stock, the Applicable Conversion Price of such shares of Underlying
Common Stock, as the case may be. 
Notwithstanding the foregoing, no Liquidated Damages Amounts shall
accrue as to any Covered Security from and after the earlier of (x) the date
such Covered Security is no longer a Registrable Security and (y) expiration of
the Effectiveness Period.  The rate of
accrual of the Liquidated Damages Amount with respect to any period shall not
exceed the rate provided for in this paragraph notwithstanding the occurrence
of multiple concurrent Events. 
Following the cure of all Events requiring the payment by the Company of
Liquidated Damages Amounts to the Holders of Registrable Securities pursuant to
this Section, the accrual of Liquidated Damages Amounts shall cease (without in
any way limiting the effect of any subsequent Event requiring the payment of
Liquidated Damages Amount by the Company).

 

The Trustee
shall be entitled, on behalf of Holders of Notes, to seek any available remedy
for the enforcement of this Agreement, including for the payment of any
Liquidated Damages Amount.

 

All of the
Company’s obligations set forth in this Section 2(e) that are outstanding
with respect to any Registrable Security at the time such security ceases to be
a Registrable Security shall survive until such time as all such obligations
with respect to such security have been satisfied in full (notwithstanding
termination of this Agreement pursuant to Section 9(m)).

 

8

 

The parties
hereto agree that the liquidated damages provided for in this Section 2(e)
constitute a reasonable estimate of the damages that may be incurred by Holders
of Registrable Securities by reason of an Event, including, without limitation,
the failure of a Shelf Registration Statement to be filed, declared effective
under the Securities Act, amended or replaced to include the names of all
Notice Holders or available for effecting resales of Registrable Securities in
accordance with the provisions hereof. 
Subject to any rights that may arise pursuant to Section 6, the
parties hereto also agree that the liquidated damages provided for hereunder
shall constitute the sole and exclusive remedy for an Event.

 

Section 3.  Registration Procedures.  In connection with the registration
obligations of the Company under Section 2 hereof, the Company shall:

 

(a)                                  Prepare
and file with the SEC a Shelf Registration Statement or Shelf Registration
Statements on Form S-1 or Form S-3 or any other appropriate form under the
Securities Act available for the sale of the Registrable Securities by the
Holders thereof in accordance with the method or methods of distribution
described in the related Notice and Questionnaires, and use its reasonable
efforts to cause each such Shelf Registration Statement to become effective and
remain effective as provided herein; provided that before filing any
Shelf Registration Statement or Prospectus or any amendments or supplements
thereto with the SEC, the Company shall furnish to the Initial Purchasers and
counsel for the Initial Purchasers copies of all such documents proposed to be
filed and use its reasonable efforts to reflect in each such document when so
filed with the SEC such comments as the Initial Purchasers or such counsel
reasonably shall propose within two (2) Business Days of the delivery of such
copies to the Initial Purchasers and such counsel.

 

(b)                                 Prepare
and file with the SEC such amendments and post-effective amendments to each
Shelf Registration Statement as may be necessary to keep such Shelf
Registration Statement or Subsequent Shelf Registration Statement continuously
effective until the expiration of the Effectiveness Period (except to the
extent permitted under Section 3(i)); cause the related Prospectus to be
supplemented by any required Prospectus supplement, and as so supplemented to
be filed pursuant to Rule 424 (or any similar provisions then in force) under
the Securities Act; and use its reasonable efforts to comply with the
provisions of the Securities Act applicable to it with respect to the
disposition of all securities covered by such Shelf Registration Statement
during the Effectiveness Period in accordance with the intended methods of
disposition by the sellers thereof set forth in such Shelf Registration
Statement as so amended or such Prospectus as so supplemented.

 

(c)                                  As
promptly as practicable, give notice to the Notice Holders (and all other
Holders known, without any duty of investigation, by the Company) and the
Initial Purchasers (i) when any Shelf Registration Statement or post-effective
amendment to a Shelf Registration Statement has become effective under the
Securities Act, (ii) of any request, following the effectiveness of a Shelf
Registration Statement under the Securities Act, by the SEC or any other
federal or state governmental authority for amendments or supplements to such
Shelf Registration Statement or the related Prospectus or for additional information,
(iii) of the issuance by the SEC or any other federal or state governmental
authority of any stop order suspending the effectiveness of any Shelf
Registration Statement, (iv) of the receipt by the Company or its legal counsel
of any notification with respect to the suspension of the qualification or
exemption from qualification of

 

9

 

any of the Registrable Securities for sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose, (v) after the
effective date of any Shelf Registration Statement filed pursuant to this
Agreement of the occurrence of (but not the nature of or details concerning) a
Material Event and (vi) of the determination by the Company that a post-effective
amendment to a Shelf Registration Statement or a Subsequent Shelf Registration
Statement will be filed with the SEC, which notice may, at the discretion of
the Company (or as required pursuant to Section 3(i)), state that it
constitutes a Suspension Notice, in which event the provisions of
Section 3(i) shall apply.

 

(d)                                 Subject
to the terms hereof, use its reasonable efforts to (A) prevent the issuance of,
and, if issued, to obtain the withdrawal of, any order suspending the
effectiveness of any Shelf Registration Statement and (B) obtain the lifting of
any suspension of the qualification (or exemption from qualification) of any of
the Registrable Securities for sale in any jurisdiction in which they have been
qualified for sale, in either case at the earliest possible moment, and provide
prompt notice to each Notice Holder and the Initial Purchasers of the
withdrawal or lifting of any such order or suspension.

 

(e)                                  If
requested by the Initial Purchasers or any Notice Holder, as promptly as
practicable incorporate in a Prospectus supplement or a post-effective
amendment to a Shelf Registration Statement such information as the Initial
Purchasers or such Notice Holder shall determine to be required to be included
therein by applicable law and make any required filings of such Prospectus
supplement or such post-effective amendment; provided that the Company
shall not be required to take any actions under this Section 3(e) unless
the Company receives the written opinion of counsel for the party making such
request that such action is required by applicable law.

 

(f)                                    As
promptly as practicable furnish upon request to each Notice Holder and the
Initial Purchasers, without charge, one (1) conformed copy of any Shelf
Registration Statement and any amendment thereto, including financial
statements but excluding schedules, all documents incorporated or deemed to be
incorporated therein by reference and all exhibits (unless requested in writing
to the Company by such Notice Holder or the Initial Purchasers).

 

(g)                                 During
the Effectiveness Period, deliver to each Notice Holder in connection with any
sale of Registrable Securities pursuant to a Shelf Registration Statement,
without charge, as many copies of the Prospectus or Prospectuses relating to
such Registrable Securities and any amendment or supplement thereto as such
Notice Holder may reasonably request; and the Company hereby consents (except
during such periods that a Suspension Notice is outstanding and has not been
revoked) to the use of such Prospectus or each amendment or supplement thereto
by each Notice Holder, in connection with any offering and sale of the
Registrable Securities covered by such Prospectus or any amendment or
supplement thereto in the manner set forth therein.

 

(h)                                 Prior
to any public offering of the Registrable Securities pursuant to a Shelf
Registration Statement, use its reasonable efforts to register or qualify or
cooperate with the Notice Holders in connection with the registration or
qualification (or exemption from such registration or qualification) of such
Registrable Securities for offer and sale under the securities or Blue Sky laws
of such jurisdictions within the United States as any Notice Holder reasonably

 

10

 

requests in writing (which request may be included in the Notice and
Questionnaire); prior to any public offering of the Registrable Securities
pursuant to a Shelf Registration Statement, use its reasonable efforts to keep
each such registration or qualification (or exemption therefrom) effective
during the Effectiveness Period in connection with such Notice Holder’s offer
and sale of Registrable Securities pursuant to such registration or
qualification (or exemption therefrom) and do any and all other acts or things
reasonably necessary or advisable to enable the disposition in such
jurisdictions of such Registrable Securities in the manner set forth in the
relevant Shelf Registration Statement and the related Prospectus; provided
that the Company will not be required to (i) qualify generally to do business
in any jurisdiction where it is not then so qualified or (ii) take any action
that would subject it to general service of process in suits or to taxation in
any such jurisdiction where it is not then so subject.

 

(i)                                     Upon
(A) the issuance by the SEC of a stop order suspending the effectiveness of any
Shelf Registration Statement or the initiation of proceedings with respect to
any Shelf Registration Statement under Section 8(d) or 8(e) of the
Securities Act, (B) the occurrence of any event or the existence of any fact as
a result of which any Shelf Registration Statement shall contain any untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading, or
any Prospectus shall contain any untrue statement of a material fact or omit to
state any material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading, or
(C) the occurrence or existence of any pending corporate development (a “Material
Event”) that, in the reasonable discretion of the Company, makes it
appropriate to suspend the availability of any Shelf Registration Statement and
the related Prospectus, (i) in the case of clause (B) or (C) above, subject to
the next sentence, as promptly as practicable, prepare and file, if necessary
pursuant to applicable law, a post-effective amendment to such Shelf
Registration Statement or a supplement to the related Prospectus or any
document incorporated therein by reference or file any other required document
that would be incorporated by reference into such Shelf Registration Statement
and Prospectus so that such Shelf Registration Statement does not contain any
untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary to make the statements therein not
misleading, and such Prospectus does not contain any untrue statement of a
material fact or omit to state any material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading (it being understood that the Company may rely on
information provided by each Notice Holder with respect to such Notice Holder),
and, in the case of a post-effective amendment to a Shelf Registration
Statement, subject to the next sentence, use its reasonable efforts to cause it
to be declared effective under the Securities Act as promptly as is
practicable, and (ii) give notice to the Notice Holders that the availability
of the Shelf Registration Statement is suspended (a “Suspension Notice”),
and, upon receipt of any Suspension Notice, each Notice Holder agrees not to
sell any Registrable Securities pursuant to such Shelf Registration Statement
until such Notice Holder’s receipt of copies of the supplemented or amended
Prospectus provided for in clause (i) above or until it is advised in writing
by the Company that the Prospectus may be used.  The Company will use its reasonable efforts to ensure that the
use of the Prospectus may be resumed (x) in the case of clause (A) above, as
promptly as is practicable, (y) in the case of clause (B) above, as soon as, in
the reasonable judgment of the Company, the Shelf Registration Statement does
not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein

 

11

 

or necessary to make the statements therein not misleading and the
Prospectus does not contain any untrue statement of a material fact or omit to
state any material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading, and
(z) in the case of clause (C) above, as soon as, in the reasonable discretion
of the Company, such suspension is no longer appropriate.  The period during which the availability of
the Shelf Registration Statement and any Prospectus may be suspended (the “Suspension
Period”) without the Company incurring any obligation to pay liquidated
damages pursuant to Section 2(e) shall not exceed forty five (45) days in
any three (3) month period or an aggregate of ninety (90) days in any twelve
(12) month period.

 

(j)                                     Make
available for inspection during normal business hours by representatives for
the Notice Holders and any underwriters participating in any disposition
pursuant to any Shelf Registration Statement and any broker-dealers, attorneys
and accountants retained by such Notice Holders or any such underwriters, all
relevant financial and other records and pertinent corporate documents and
properties of the Company and its subsidiaries, and cause the appropriate
officers, directors and employees of the Company and its subsidiaries to make
available for inspection during normal business hours all relevant information
reasonably requested by such representatives for the Notice Holders, or any
such underwriters, broker-dealers, attorneys or accountants in connection with
such disposition, in each case as is customary for similar “due diligence”
examinations; provided, however, that such persons shall first
agree in writing with the Company that any information that is confidential at
the time of delivery of such information shall be kept confidential by such
persons and shall be used solely for the purposes of exercising rights under
this Agreement, unless (i) disclosure of such information is required by court
or administrative order or is necessary to respond to inquiries of governmental
or regulatory authorities, (ii) disclosure of such information is required by
law (including any disclosure requirements pursuant to federal securities laws
in connection with the filing of any Shelf Registration Statement or the use of
any Prospectus referred to in this Agreement) or necessary to defend or
prosecute a claim brought against or by any such persons (e.g., to establish a “due
diligence” defense), (iii) such information becomes generally available to the
public other than as a result of a disclosure or failure to safeguard by any
such person or (iv) such information becomes available to any such person from
a source other than the Company and such source is not bound by a
confidentiality agreement or is not otherwise under a duty of trust to the
Company; provided  further, that the foregoing inspection and
information gathering shall, to the greatest extent possible, be coordinated on
behalf of all the Notice Holders and the other parties entitled thereto by one
counsel for such Notice Holders and such other parties.

 

(k)                                  Comply
with all applicable rules and regulations of the SEC to the extent, and so long
as, they are applicable to any Shelf Registration Statement; and make generally
available to its securityholders earnings statements (which need not be
audited) satisfying the provisions of Section 11(a) of the Securities Act
and Rule 158 thereunder (or any similar rule promulgated under the Securities
Act) no later than forty five (45) days after the end of any twelve (12) month period
(or seventy five (75) days after the end of any twelve (12) month period if
such period is a fiscal year) commencing on the first day of the first fiscal
quarter of the Company commencing after the effective date of a Shelf
Registration Statement, which statements shall cover such twelve (12) month
periods.

 

12

 

(l)                                     Cooperate
with each Notice Holder to facilitate the timely preparation and delivery of
certificates representing Registrable Securities sold pursuant to a Shelf
Registration Statement, which certificates shall not bear any restrictive
legends, and cause such Registrable Securities to be in such denominations as
are permitted by the Indenture and registered in such names as such Notice
Holder may request in writing at least two (2) Business Days prior to any sale
of such Registrable Securities.

 

(m)                               Provide
a CUSIP number for all Registrable Securities covered by a Shelf Registration
Statement not later than the effective date of the Initial Shelf Registration
Statement and provide the Trustee and the transfer agent for the Common Stock
with certificates for the Registrable Securities that are in a form eligible
for deposit with, or to be held by the Trustee as custodian for, The Depository
Trust Company in book-entry-only form.

 

(n)                                 Cooperate
and assist in any filings required to be made with the National Association of
Securities Dealers, Inc.

 

(o)                                 Cause
the Indenture to be qualified under the TIA not later than the effective date
of the Initial Shelf Registration Statement; and in connection therewith,
cooperate with the Trustee to effect such changes to the Indenture as may be
required for the Indenture to be so qualified in accordance with the terms of
the TIA and execute, and use its reasonable efforts to cause the Trustee to
execute, all documents as may be required to effect such changes, and all other
forms and documents required to be filed with the SEC to enable the Indenture
to be so qualified in a timely manner.

 

(p)                                 Use
its reasonable efforts to file with the NASDAQ a Notification of Listing of
Additional Shares, if required in order to list the Underlying Common Stock on
The Nasdaq National Market.

 

(q)                                 Use
its reasonable efforts to take all other steps necessary to effect the
registration of the Registrable Securities as contemplated hereby.

 

Section 4.  Holder’s Obligations.  Each Holder agrees, by acquisition of the
Registrable Securities, that no Holder of Registrable Securities shall be
entitled to sell any of such Registrable Securities pursuant to a Shelf
Registration Statement or to receive a Prospectus relating thereto, unless such
Holder has furnished the Company with a Notice and Questionnaire as required
pursuant to Section 2(d) hereof (including the information required to be
included in such Notice and Questionnaire) and the information set forth in the
next sentence. Each Notice Holder agrees promptly to furnish to the Company all
information required to be disclosed in order to make the information
previously furnished to the Company by such Notice Holder not misleading and
any other information regarding such Notice Holder and the distribution of such
Registrable Securities as the Company may from time to time reasonably request.
Any sale of any Registrable Securities by any Holder shall constitute a
representation and warranty by such Holder that the information relating to
such Holder and its plan of distribution is as set forth in the Prospectus
delivered by such Holder in connection with such disposition, that such Prospectus
does not as of the time of such sale contain any untrue statement of a material
fact relating to or provided by such

 

13

 

Holder or its plan of distribution and that such Prospectus does not as
of the time of such sale omit to state any material fact relating to or
provided by such Holder or its plan of distribution necessary in order to make
the statements in such Prospectus, in the light of the circumstances under
which they were made, not misleading. 
Each Holder agrees to keep confidential the receipt of any Suspension
Notice and the contents thereof, except as required pursuant to applicable law.

 

Section 5.  Registration Expenses.  The Company shall bear all fees and expenses
incurred in connection with the performance by the Company of its obligations
under Section 2 and 3 of this Agreement whether or not any of the Shelf
Registration Statements are filed or declared effective under the Securities
Act. Such fees and expenses (“Registration Expenses”) shall include,
without limitation, (i) all registration and filing fees and expenses
(including, without limitation, fees and expenses (x) with respect to filings
required to be made with the National Association of Securities Dealers, Inc.
and (y) of compliance with federal securities laws and state securities or Blue
Sky laws (including, without limitation, reasonable fees and disbursements of
counsel for the Holders in connection with Blue Sky qualifications of the
Registrable Securities under the laws of such jurisdictions as the Notice
Holders of a majority of the Registrable Securities being sold pursuant to a
Shelf Registration Statement may designate), (ii) all printing expenses
(including, without limitation, expenses of printing certificates for Registrable
Securities in a form eligible for deposit with The Depository Trust Company and
printing Prospectuses), (iii) all duplication and mailing expenses relating to
copies of any Shelf Registration Statement or Prospectus delivered to any
Holders hereunder, (iv) all fees and disbursements of counsel for the Company,
(v) all fees and disbursements of the Trustee and its counsel and of the
registrar and transfer agent for the Common Stock and (vi) Securities Act
liability insurance obtained by the Company in its sole discretion. In
addition, the Company shall pay the internal expenses of the Company
(including, without limitation, all salaries and expenses of officers and
employees performing legal or accounting duties), the expense of any annual
audit, the fees and expenses incurred in connection with the listing by the
Company of the Registrable Securities on any securities exchange on which
similar securities of the Company are then listed and the fees and expenses of
any person, including special experts, retained by the Company.  Except as provided above, each Holder shall
pay all brokerage fees and commissions, all transfer taxes, the fees and
expenses of any advisors the Holder engages and all similar fees and costs
relating to such Holder’s disposition of Registrable Securities.

 

Section 6.  Indemnification; Contribution.

 

(a)                                  The
Company agrees to indemnify, defend and hold harmless each Initial Purchaser,
each Holder, each person, if any, who controls any Initial Purchaser or Holder
within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act (a “Controlling Person”) and the respective
officers, directors, partners, employees, representatives and agents of any
Initial Purchaser, the Holders or any Controlling Person (each, an “Indemnified
Party”), from and against any loss, damage, expense, liability, claim or
any actions in respect thereof (including the reasonable cost of investigation)
which such Indemnified Party may incur or become subject to under the
Securities Act, the Exchange Act or otherwise, insofar as such loss, damage,
expense, liability, claim or action arises out of or is based upon any untrue
statement or alleged untrue statement of a material fact contained in any Shelf
Registration Statement or Prospectus, including any document incorporated by
reference therein, or in any amendment or supplement thereto or in any
preliminary prospectus, or arises out of or is based

 

14

 

upon any omission or alleged omission to state a material fact required
to be stated in any Shelf Registration Statement or in any amendment or
supplement thereto or necessary to make the statements therein not misleading,
or arises out of or is based upon any omission or alleged omission to state a
material fact necessary in order to make the statements made in any Prospectus
or in any amendment or supplement thereto or in any preliminary prospectus, in
the light of the circumstances under which they were made, not misleading, and
the Company shall reimburse, as incurred, the Indemnified Parties for any legal
or other expenses reasonably incurred by them in connection with investigating
or defending any such loss, damage, expense, liability, claim or action in
respect thereof; provided, however, that the Company shall not be
required to provide any indemnify pursuant to this Section 6(a) in any
such case insofar as any such loss, damage, expense, liability, claim or action
arises out of or is based upon any untrue statement or omission or alleged
untrue statement or omission of a material fact contained in, or omitted from,
and in conformity with information furnished in writing by or on behalf of an
Initial Purchaser or a Holder to the Company expressly for use in, any Shelf
Registration Statement or any Prospectus, including information provided by
such Holder in a Notice and Questionnaire; provided  further that,
with respect to any untrue statement or omission or alleged untrue statement or
omission made in any preliminary prospectus relating to a Shelf Registration
Statement, the indemnity agreement contained in this subsection (a) shall
not inure to the benefit of any Holder from whom the person asserting any such
losses, damages, expenses, liabilities, claims or actions purchased the Registrable
Securities concerned, to the extent that a prospectus relating to such
Registrable Securities was required to be delivered by such Holder under the
Securities Act in connection with such purchase and any such loss, damage,
expense, liability, claim or action of such Holder results from the fact that
there was not sent or given to such person, at or prior to the written
confirmation of the sale of such Registrable Securities to such person, a copy
of the final prospectus if the Company had previously furnished copies thereof
to such Holder; provided  further, however, that (i) this
indemnity agreement will be in addition to any liability which the Company may
otherwise have to such Indemnified Party and (ii) this indemnity agreement will
not apply to any loss, damage, expense, liability or claim arising from an
offer or sale, occurring during a Suspension Period, of Registrable Securities
by a Notice Holder to whom the Company theretofore provided a Suspension Notice
in accordance with Section 3(i).

 

(b)                                 Each
Holder, severally and not jointly, agrees to indemnify, defend and hold
harmless the Company, its directors, officers, employees, representatives,
agents and any person who controls the Company within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act
(each, a “Company Indemnified Party”) from and against any loss, damage,
expense, liability, claim or any actions in respect thereof (including the
reasonable cost of investigation) which such Company Indemnified Party may incur
or become subject to under the Securities Act, the Exchange Act or otherwise,
insofar as such loss, damage, expense, liability, claim or action (i) arises
out of or is based upon any untrue statement or alleged untrue statement of a
material fact contained in information furnished in writing by or on behalf of
such Holder to the Company expressly for use in any Shelf Registration
Statement or Prospectus, including any document incorporated by reference
therein, or in any amendment or supplement thereto or in any preliminary
prospectus, or arises out of or is based upon any omission or alleged omission
to state a material fact required to be stated in any Shelf Registration
Statement or in any amendment or supplement thereto or necessary to make the
statements therein not misleading, or

 

15

 

arises out of or is based upon any omission or alleged omission to
state a material fact necessary in order to make the statements in any
Prospectus or in any amendment or supplement thereto or in any preliminary
prospectus, in the light of the circumstances under which they were made, not
misleading, in connection with such information, (ii) arises out of or is based
upon a sale of Registrable Securities during a Suspension Period by a Notice
Holder to whom the Company theretofore provided a Suspension Notice in
accordance with Section 3(i) or (iii) arises out of or is based upon a
sale of Registrable Securities by a Notice Holder without delivery of the most
recent applicable Prospectus provided to such Holder by the Company pursuant to
Section 3(g) or Section 2(d)(i)(C); and, subject to the limitation
set forth immediately preceding this clause, each Holder shall reimburse, as
incurred, the Company for any legal or other expenses reasonably incurred by
the Company or any such controlling person in connection with investigating or
defending any loss, damage, expense, liability, claim or action in respect
thereof.  This indemnity agreement will
be in addition to any liability which such Holder may otherwise have to the
Company or any of its controlling persons. 
In no event shall the liability of any selling Holder of Registrable
Securities hereunder be greater in amount than the dollar amount of the
proceeds received by such Holder upon the sale of the Registrable Securities
pursuant to the Shelf Registration Statement giving rise to such
indemnification obligation.

 

(c)                                  If
any action, suit or proceeding (each, a “Proceeding”) is brought against
any person in respect of which indemnity may be sought pursuant to either
subsection (a) or (b) of this Section 6, such person (the “Indemnified
Party”) shall promptly notify the person against whom such indemnity may be
sought (the “Indemnifying Party”) in writing of the institution of such
Proceeding and the Indemnifying Party shall assume the defense of such
Proceeding; provided, however, that the omission to notify such
Indemnifying Party shall not relieve such Indemnifying Party from any liability
which it may have to such Indemnified Party or otherwise, except to the extent
the Indemnifying Party is materially prejudiced thereby.  Such Indemnified Party shall have the right
to employ its own counsel in any such case, but the fees and expenses of such
counsel shall be at the expense of such Indemnified Party unless the employment
of such counsel shall have been authorized in writing by such Indemnifying
Party in connection with the defense of such Proceeding or such Indemnifying
Party shall not have employed counsel to have charge of the defense of such
Proceeding within thirty (30) days of the receipt of notice thereof or such
Indemnified Party shall have reasonably concluded upon the written advice of
counsel that there may be one or more defenses available to it that are
different from, additional to or in conflict with those available to such
Indemnifying Party (in which case such Indemnifying Party shall not have the
right to direct that portion of the defense of such Proceeding on behalf of the
Indemnified Party, but such Indemnifying Party may employ counsel and
participate in the defense thereof but the fees and expenses of such counsel
shall be at the expense of such Indemnifying Party), in any of which events
such reasonable fees and expenses shall be borne by such Indemnifying Party and
paid as incurred (it being understood, however, that such Indemnifying Party
shall not be liable for the expenses of more than one separate counsel in any
one Proceeding or series of related Proceedings together with reasonably
necessary local counsel representing the Indemnified Parties who are parties to
such action).  An Indemnifying Party
shall not be liable for any settlement of such Proceeding effected without the
written consent of such Indemnifying Party, but if settled with the written consent
of such Indemnifying Party, such Indemnifying Party agrees to indemnify and
hold harmless an Indemnified Party from and against any loss or liability by
reason of such settlement.  No
Indemnifying Party shall, without

 

16

 

the prior written consent of any Indemnified Party, effect any
settlement of any pending or threatened Proceeding in respect of which such
Indemnified Party is or could have been a party and indemnity could have been
sought hereunder by such Indemnified Party, unless such settlement includes an
unconditional release of such Indemnified Party from all liability on claims
that are the subject matter of such Proceeding and does not include an
admission of fault, culpability or a failure to act, by or on behalf of such
Indemnified Party.

 

(d)                                 If
the indemnification provided for in this Section 6 is unavailable to an
Indemnified Party under subsections (a) and (b) of this Section 6 in
respect of any losses, damages, expenses, liabilities, claims or actions
referred to therein, then each applicable Indemnifying Party, in lieu of
indemnifying such Indemnified Party, shall contribute to the amount paid or
payable by such Indemnified Party as a result of such losses, damages,
expenses, liabilities, claims or actions (i) in such proportion as is
appropriate to reflect the relative benefits received by the Company on the one
hand and the Holders or the Initial Purchasers on the other hand from the
offering of the Registrable Securities or (ii) if the allocation provided by
clause (i) above is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i)
above but also the relative fault of the Company on the one hand and of the
Holders or the Initial Purchasers on the other in connection with the
statements or omissions which resulted in such losses, damages, expenses,
liabilities, claims or actions, as well as any other relevant equitable
considerations.  The relative fault of
the Company on the one hand and of the Holders or the Initial Purchasers on the
other shall be determined by reference to, among other things, whether the
untrue statement or alleged untrue statement of a material fact or omission or
alleged omission relates to information supplied by the Company or by the
Holders or the Initial Purchasers and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission.  The amount paid or payable by
a party as a result of the losses, damages, expenses, liabilities, claims and
actions referred to above shall be deemed to include any reasonable legal or
other fees or expenses reasonably incurred by such party in connection with
investigating or defending any Proceeding.

 

(e)                                  The
Company, the Holders and the Initial Purchasers agree that it would not be just
and equitable if contribution pursuant to this Section 6 were determined
by pro rata allocation or by any other method of allocation which does not take
account of the equitable considerations referred to in subsection (d)
above.  Notwithstanding the provisions
of this Section 6, no Holder shall be required to contribute any amount in
excess of the amount by which the total price at which the Registrable Securities
sold by it were offered to the public exceeds the amount of any damages which
it has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission.  No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation.  The Holders’
respective obligations to contribute pursuant to this Section 6 are several
in proportion to the respective amount of Registrable Securities they have sold
pursuant to a Shelf Registration Statement, and not joint.  The remedies provided for in this
Section 6 are not exclusive and shall not limit any rights or remedies which
may otherwise be available to any indemnified party at law or in equity.

 

(f)                                    The
indemnity and contribution provisions contained in this Section 6 shall
remain operative and in full force and effect regardless of (i) any termination
of this Agreement, (ii) any

 

17

 

investigation made by or on behalf of any Holder or the Initial
Purchasers or any person controlling any Holder or Initial Purchaser, or the
Company, or the Company’s officers or directors or any person controlling the
Company and (iii) the sale of any Registrable Security by any Holder.

 

Section 7.  Information Requirements.  The Company covenants that, if at any time
before the end of the Effectiveness Period it is not subject to the reporting
requirements of the Exchange Act, it will cooperate with any Holder of
Registrable Securities and take such further action as any Holder of
Registrable Securities may reasonably request in writing (including, without
limitation, making such representations as any such Holder may reasonably
request), all to the extent required from time to time to enable such Holder to
sell Registrable Securities without registration under the Securities Act
within the limitations of the exemptions provided by Rule 144,  Rule 144A and Regulation S under the
Securities Act and customarily taken in connection with sales pursuant to such
exemptions.

 

Section 8.  Underwritten Registrations. 
Notwithstanding anything herein to the contrary, no Registrable
Securities covered by a Shelf Registration Statement may be sold in an
underwritten offering under the Shelf Registration Statement without the prior
written consent of the Company.  No
person may participate in any underwritten registration hereunder unless such
person (i) agrees to sell such person’s Registrable Securities on the basis
reasonably provided in any underwriting arrangements approved by the persons
entitled hereunder to approve such arrangements and (ii) completes and executes
all questionnaires, powers of attorney, indemnities, underwriting agreements
and other documents reasonably required under the terms of such underwriting
arrangements.

 

Section 9.  Miscellaneous.

 

(a)                                  Remedies.  The Company acknowledges and agrees that any
failure by the Company to comply with its obligations under this Agreement may
result in material irreparable injury to the Initial Purchasers or the Holders
for which there is no adequate remedy at law, that it will not be possible to
measure damages for such injuries precisely and that, in the event of any such
failure, any Initial Purchaser or Holder may obtain such relief as may be
required to specifically enforce the Company’s obligations under this
Agreement.  The Company further agrees
to waive the defense in any action for specific performance that a remedy at
law would be adequate.  Notwithstanding
the foregoing two sentences, this Section 9(a) shall not apply to the
subject matter referred to in and contemplated by Section 2(e).

 

(b)                                 No Conflicting Agreements.  The Company is not, as of the date hereof, a
party to, nor shall it, on or after the date of this Agreement, enter into, any
agreement with respect to its securities that conflicts with the rights granted
to the Holders of Registrable Securities in this Agreement.  The Company warrants that the rights granted
to the Holders of Registrable Securities hereunder will not be asserted in a
manner that in any way conflicts with the rights granted to the holders of the
Company’s securities under any other agreements.  After the date hereof, the Company shall not grant to any of its
security holders (other than the Holders in such capacity) the right to include
any of its securities in the Shelf Registration Statement filed pursuant to
this Agreement.

 

18

 

(c)                                  Amendments and Waivers.  The provisions of this Agreement, including
the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given, unless the Company has obtained the written consent of Holders of a
majority in aggregate principal amount of such Registrable Securities (provided
that holders of Common Stock issued upon conversion of the Notes shall not be
deemed holders of Common Stock, but shall be deemed to be holders of the
aggregate principal amount of Notes from which such Common Stock was
converted); provided  that, no consent is necessary from any of
the Holders in the event that this Agreement is amended, modified or
supplemented for the purpose of curing any ambiguity, defect or inconsistency
that does not adversely affect the rights of any Holders.  Notwithstanding the foregoing, a waiver or
consent to depart from the provisions hereof with respect to a matter that
relates exclusively to the rights of Holders of Registrable Securities whose
securities are being sold pursuant to a Shelf Registration Statement and that
does not directly or indirectly affect the rights of other Holders of
Registrable Securities may be given by Holders of at least a majority of the
Registrable Securities being sold by such Holders pursuant to such Shelf
Registration Statement; provided that the provisions of this sentence
may not be amended, modified, or supplemented except in accordance with the
provisions of the immediately preceding sentence. Each Holder of Registrable
Securities outstanding at the time of any such amendment, modification,
supplement, waiver or consent or thereafter shall be bound by any such
amendment, modification, supplement, waiver or consent effected pursuant to
this Section 9(c), whether or not any notice, writing or marking
indicating such amendment, modification, supplement, waiver or consent appears
on the Registrable Securities or is delivered to such Holder.

 

(d)                                 Notices. All notices and other
communications provided for or permitted hereunder shall be made in writing by
hand delivery, by telecopier, by courier guaranteeing overnight delivery or by
first-class mail, return receipt requested, and shall be deemed given (i) when made,
if made by hand delivery, (ii) upon confirmation, if made by telecopier, (iii)
one (1) Business Day after being deposited with such courier, if made by
overnight courier or (iv) on the date indicated on the notice of receipt, if
made by first-class mail, to the parties as follows:

 

(x)                                   if
to a Holder of Registrable Securities, at the most current address given by
such Holder to the Company in a Notice and Questionnaire or any amendment
thereto;

 

	
  (y)

  	
   

  	
  if to the
  Company, to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Genzyme Corporation

  
	
   

  	
   

  	
  Genzyme Center

  
	
   

  	
   

  	
  500 Kendall Street

  
	
   

  	
   

  	
  Cambridge, MA 02142

  
	
   

  	
   

  	
  Attention: General Counsel

  
	
   

  	
   

  	
  Telecopy No.: (617) 252-7553

  
	
   

  	
   

  	
   

  
	
  (z)

  	
   

  	
  if to the Initial Purchasers, to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c/o UBS Securities LLC

  
	
   

  	
   

  	
  299 Park Avenue

  

 

19

 

	
   

  	
   

  	
  New York, New York 10171

  
	
   

  	
   

  	
  Attention: Syndicate Department

  
	
   

  	
   

  	
  Telecopy No.: (212) 713-1205

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a copy to (for informational purposes
  only):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  UBS Securities LLC

  
	
   

  	
   

  	
  299 Park Avenue

  
	
   

  	
   

  	
  New York, New York 10171

  
	
   

  	
   

  	
  Attention: Legal Department

  
	
   

  	
   

  	
  Telecopy No.: (212) 821-4042

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  UBS Securities LLC

  
	
   

  	
   

  	
  677 Washington Boulevard

  
	
   

  	
   

  	
  Stamford, Connecticut 06901

  
	
   

  	
   

  	
  Attention: Syndicate Department

  
	
   

  	
   

  	
  Telecopy No.: (203) 719-0683

  

 

or to such other address as such person may have furnished to the other
persons identified in this Section 9(d) in writing in accordance herewith.

 

(e)                                  Approval of Holders.  Whenever the consent or approval of Holders
of a specified percentage of Registrable Securities is required hereunder,
Registrable Securities held by the Company or its “affiliates” (as such term is
defined in Rule 405 under the Securities Act) (other than the Initial
Purchasers or subsequent Holders of Registrable Securities if the Initial
Purchasers or such subsequent Holders are deemed to be such affiliates solely
by reason of their holdings of such Registrable Securities) shall not be
counted in determining whether such consent or approval was given by the
Holders of such required percentage.

 

(f)                                    Third Party
Beneficiaries.  The Holders
shall be third party beneficiaries to the agreements made hereunder between the
Company, on the one hand, and the Initial Purchasers, on the other hand, and
shall have the right to enforce such agreements directly to the extent they may
deem such enforcement necessary or advisable to protect their rights or the
rights of Holders hereunder and shall be bound by the terms hereof.

 

(g)                                 Successors and Assigns.  Any person who purchases any Registrable
Securities from any Initial Purchaser or from any Holder shall be deemed, for
purposes of this Agreement, to be an assignee of such Initial Purchaser or such
Holder, as the case may be.  This
Agreement shall inure to the benefit of and be binding upon the respective
successors and assigns of each of the parties hereto and shall inure to the
benefit of and be binding upon each Holder of any Registrable Securities.

 

(h)                                 Counterparts. This Agreement may be
executed in any number of counterparts and by the parties hereto in separate
counterparts, each of which when so executed shall be deemed to be original and
all of which taken together shall constitute one and the same agreement.

 

20

 

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

 

(j)                                     Governing Law. THIS AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF.

 

(k)                                  Severability.  If any term, provision, covenant or restriction of this Agreement
is held to be invalid, illegal, void or unenforceable, the remainder of the
terms, provisions, covenants and restrictions set forth herein shall remain in
full force and effect and shall in no way be affected, impaired or invalidated
thereby, and the parties hereto shall use their reasonable efforts to find and
employ an alternative means to achieve the same or substantially the same
result as that contemplated by such term, provision, covenant or restriction,
it being intended that all of the rights and privileges of the parties shall be
enforceable to the fullest extent permitted by law.

 

(l)                                     Entire Agreement.  This Agreement is intended by the parties as
a final expression of their agreement and is intended to be a complete and
exclusive statement of the agreement and understanding of the parties hereto in
respect of the subject matter contained herein and the registration rights
granted by the Company with respect to the Registrable Securities. Except as
provided in the Purchase Agreement, there are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein,
with respect to the registration rights granted by the Company with respect to
the Registrable Securities.  This
Agreement supersedes all prior agreements and undertakings among the parties
with respect to such registration rights. 
No party hereto shall have any rights, duties or obligations other than
those specifically set forth in this Agreement.

 

(m)                               Termination.  This Agreement and the obligations of the parties hereunder shall
terminate upon the end of the Effectiveness Period, except for any liabilities
or obligations under Section 4, 5 or 6 hereof and the obligations to make
payments of and provide for liquidated damages under Section 2(e) hereof
to the extent such damages accrue prior to the end of the Effectiveness Period,
each of which shall remain in effect in accordance with its terms.

 

(n)                                 Submission to Jurisdiction.  Except as set forth below, no Proceeding may
be commenced, prosecuted or continued in any court other than the courts of the
State of New York located in the City and County of New York or in the United
States District Court for the Southern District of New York, which courts shall
have jurisdiction over the adjudication of such matters, and the Company hereby
consents to the jurisdiction of such courts and personal service with respect
thereto.  The Company hereby consents to
personal jurisdiction, service and venue in any court in which any Proceeding
arising out of or in any way relating to this Agreement is brought by any third
party against any Initial Purchaser. 
THE COMPANY, THE INITIAL PURCHASERS AND THE HOLDERS HEREBY WAIVE ALL
RIGHT TO TRIAL BY JURY IN ANY PROCEEDING (WHETHER BASED UPON CONTRACT, TORT OR
OTHERWISE) IN ANY WAY ARISING OUT OF OR RELATING TO THIS AGREEMENT.  The Company, the Initial Purchasers and the
Holders, agree that a final judgment in any such Proceeding brought in any such
court shall be conclusive and binding upon the Company and may be

 

21

 

enforced in any other courts in the jurisdiction of which the Company
is or may be subject, by suit upon such judgment.

 

[The
Remainder of This Page Left Blank; Signature Page Follows]

 

22

 

IN WITNESS
WHEREOF, the parties have executed this Agreement as of the date first written
above.

 

 

	
   

  	
  GENZYME CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Michael Wyzga

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael Wyzga

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial and

  Accounting Officer;

  Executive Vice President,

  Finance

  
	
   

  
	
  Confirmed and accepted as of the date first
  above

  written on behalf of itself and the other several

  Initial Purchasers:

  
					

 

 

	
  UBS SECURITIES LLC

  
	
   

  
	
   

  
	
  By:

  	
    /s/ Chris D. Hite

  	
   

  
	
   

  	
  Name:  /s/ Chris D. Hite

  
	
   

  	
  Title:  Managing Director

  
	
   

  
	
   

  
	
  By:

  	
    /s/ Mark Saad

  	
   

  
	
   

  	
  Name:  Mark Saad

  
	
   

  	
  Title:  Executive Director

  
					

 

23

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