Document:

Exhibit 4.1

NOVAMED, INC.,

ISSUER

and

LASALLE BANK NATIONAL ASSOCIATION,

TRUSTEE

INDENTURE

Dated as of June 27, 2007

Subordinated Debt Securities

TABLE OF
CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
   

  	
  DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.01

  	
   

  	
  Definitions of
  Terms

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  	
  ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION
  AND EXCHANGE OF SECURITIES

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 2.01

  	
   

  	
  Designation and
  Terms of Securities

  	
   

  	
  5

  
	
  Section 2.02

  	
   

  	
  Form of
  Securities and Trustee’s Certificate

  	
   

  	
  7

  
	
  Section 2.03

  	
   

  	
  Denominations;
  Provisions for Payment

  	
   

  	
  7

  
	
  Section 2.04

  	
   

  	
  Execution and
  Authentications

  	
   

  	
  9

  
	
  Section 2.05

  	
   

  	
  Registration of
  Transfer and Exchange

  	
   

  	
  10

  
	
  Section 2.06

  	
   

  	
  Temporary
  Securities

  	
   

  	
  11

  
	
  Section 2.07

  	
   

  	
  Mutilated,
  Destroyed, Lost or Stolen Securities

  	
   

  	
  11

  
	
  Section 2.08

  	
   

  	
  Cancellation

  	
   

  	
  12

  
	
  Section 2.09

  	
   

  	
  Benefits of
  Indenture

  	
   

  	
  12

  
	
  Section 2.10

  	
   

  	
  Authenticating
  Agent

  	
   

  	
  12

  
	
  Section 2.11

  	
   

  	
  Global
  Securities

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  	
  REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 3.01

  	
   

  	
  Redemption

  	
   

  	
  14

  
	
  Section 3.02

  	
   

  	
  Notice of
  Redemption

  	
   

  	
  14

  
	
  Section 3.03

  	
   

  	
  Payment Upon
  Redemption

  	
   

  	
  15

  
	
  Section 3.04

  	
   

  	
  Sinking Fund

  	
   

  	
  16

  
	
  Section 3.05

  	
   

  	
  Satisfaction of
  Sinking Fund Payments with Securities

  	
   

  	
  16

  
	
  Section 3.06

  	
   

  	
  Redemption of
  Securities for Sinking Fund

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  	
  COVENANTS

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.01

  	
   

  	
  Payment of
  Principal, Premium and Interest

  	
   

  	
  17

  
	
  Section 4.02

  	
   

  	
  Maintenance of
  Office or Agency

  	
   

  	
  17

  
	
  Section 4.03

  	
   

  	
  Paying Agents

  	
   

  	
  17

  
	
  Section 4.04

  	
   

  	
  Appointment to
  Fill Vacancy in Office of Trustee

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  	
  SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY
  AND THE TRUSTEE

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.01

  	
   

  	
  Company to Furnish
  Trustee Names and Addresses of Securityholders

  	
   

  	
  18

  
	
  Section 5.02

  	
   

  	
  Preservation Of
  Information; Communications With Securityholders

  	
   

  	
  19

  
	
  Section 5.03

  	
   

  	
  Reports by the
  Company

  	
   

  	
  19

  
	
  Section 5.04

  	
   

  	
  Reports by the
  Trustee

  	
   

  	
  20

  

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  ARTICLE VI

  	
   

  	
  REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT
  OF DEFAULT

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 6.01

  	
   

  	
  Events of
  Default

  	
   

  	
  20

  
	
  Section 6.02

  	
   

  	
  Suits for
  Enforcement by Trustee

  	
   

  	
  22

  
	
  Section 6.03

  	
   

  	
  Application of
  Moneys Collected

  	
   

  	
  23

  
	
  Section 6.04

  	
   

  	
  Limitation on
  Suits

  	
   

  	
  24

  
	
  Section 6.05

  	
   

  	
  Rights and
  Remedies Cumulative; Delay or Omission Not Waiver

  	
   

  	
  24

  
	
  Section 6.06

  	
   

  	
  Control by
  Securityholders

  	
   

  	
  25

  
	
  Section 6.07

  	
   

  	
  Undertaking to
  Pay Costs

  	
   

  	
  25

  
	
  Section 6.08

  	
   

  	
  Sole Remedy for
  Failure to Report

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  	
  CONCERNING THE TRUSTEE

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 7.01

  	
   

  	
  Certain Duties
  and Responsibilities of Trustee

  	
   

  	
  26

  
	
  Section 7.02

  	
   

  	
  Certain Rights
  of Trustee

  	
   

  	
  27

  
	
  Section 7.03

  	
   

  	
  Trustee Not
  Responsible for Recitals or Issuance or Securities

  	
   

  	
  29

  
	
  Section 7.04

  	
   

  	
  May Hold
  Securities

  	
   

  	
  29

  
	
  Section 7.05

  	
   

  	
  Moneys Held in
  Trust

  	
   

  	
  29

  
	
  Section 7.06

  	
   

  	
  Compensation and
  Reimbursement

  	
   

  	
  29

  
	
  Section 7.07

  	
   

  	
  Reliance on
  Officers’ Certificate

  	
   

  	
  30

  
	
  Section 7.08

  	
   

  	
  Disqualification;
  Conflicting Interests

  	
   

  	
  30

  
	
  Section 7.09

  	
   

  	
  Corporate
  Trustee Required; Eligibility

  	
   

  	
  30

  
	
  Section 7.10

  	
   

  	
  Resignation and
  Removal; Appointment of Successor

  	
   

  	
  30

  
	
  Section 7.11

  	
   

  	
  Acceptance of
  Appointment By Successor

  	
   

  	
  32

  
	
  Section 7.12

  	
   

  	
  Merger,
  Conversion, Consolidation or Succession to Business

  	
   

  	
  33

  
	
  Section 7.13

  	
   

  	
  Preferential
  Collection of Claims Against the Company

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  	
  CONCERNING THE SECURITYHOLDERS

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 8.01

  	
   

  	
  Evidence of
  Action by Securityholders

  	
   

  	
  33

  
	
  Section 8.02

  	
   

  	
  Proof of
  Execution by Securityholders

  	
   

  	
  34

  
	
  Section 8.03

  	
   

  	
  Who May be
  Deemed Owners

  	
   

  	
  34

  
	
  Section 8.04

  	
   

  	
  Certain
  Securities Owned by Company Disregarded

  	
   

  	
  35

  
	
  Section 8.05

  	
   

  	
  Actions Binding
  on Future Securityholders

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
   

  	
  SUPPLEMENTAL
  INDENTURES

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 9.01

  	
   

  	
  Supplemental
  Indentures Without the Consent of Securityholders

  	
   

  	
  35

  
	
  Section 9.02

  	
   

  	
  Supplemental
  Indentures With Consent of Securityholders

  	
   

  	
  36

  
	
  Section 9.03

  	
   

  	
  Effect of
  Supplemental Indentures

  	
   

  	
  38

  
	
  Section 9.04

  	
   

  	
  Securities
  Affected by Supplemental Indentures

  	
   

  	
  38

  
	
  Section 9.05

  	
   

  	
  Execution of
  Supplemental Indentures

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
   

  	
  SUCCESSOR ENTITY

  	
   

  	
  39

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 10.01

  	
   

  	
  Company May
  Consolidate, Etc

  	
   

  	
  39

  
	
  Section 10.02

  	
   

  	
  Successor Entity
  Substituted

  	
   

  	
  39

  

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  Section
  10.03

  	
   

  	
  Evidence of
  Consolidation, Etc. to Trustee

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
   

  	
  SATISFACTION AND DISCHARGE

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 11.01

  	
   

  	
  Satisfaction and
  Discharge of Indenture

  	
   

  	
  40

  
	
  Section 11.02

  	
   

  	
  Discharge of
  Obligations

  	
   

  	
  40

  
	
  Section 11.03

  	
   

  	
  Deposited Moneys
  to be Held in Trust

  	
   

  	
  41

  
	
  Section 11.04

  	
   

  	
  Payment of
  Moneys Held by Paying Agents

  	
   

  	
  41

  
	
  Section 11.05

  	
   

  	
  Repayment to
  Company

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XII

  	
   

  	
  IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS
  AND DIRECTORS

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 12.01

  	
   

  	
  No Recourse

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIII

  	
   

  	
  MISCELLANEOUS PROVISIONS

  	
   

  	
  42

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 13.01

  	
   

  	
  Effect on
  Successors and Assigns

  	
   

  	
  42

  
	
  Section 13.02

  	
   

  	
  Actions by
  Successor

  	
   

  	
  42

  
	
  Section 13.03

  	
   

  	
  Notices

  	
   

  	
  42

  
	
  Section 13.04

  	
   

  	
  Governing Law

  	
   

  	
  43

  
	
  Section 13.05

  	
   

  	
  Compliance Certificates
  and Opinions

  	
   

  	
  43

  
	
  Section 13.06

  	
   

  	
  Payments on
  Business Days

  	
   

  	
  43

  
	
  Section 13.07

  	
   

  	
  Conflict with
  Trust Indenture Act

  	
   

  	
  43

  
	
  Section 13.08

  	
   

  	
  Counterparts

  	
   

  	
  44

  
	
  Section 13.09

  	
   

  	
  Separability

  	
   

  	
  44

  
	
  Section 13.10

  	
   

  	
  Assignment

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIV

  	
   

  	
  SUBORDINATION OF SECURITIES

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 14.01

  	
   

  	
  Subordination
  Terms

  	
   

  	
  44

  

(1)           This Table of Contents does not constitute part of the
Indenture and shall not have any bearing on the interpretation of any of its
terms or provisions.

 iii

INDENTURE, dated as of
June 27, 2007, between NovaMed, Inc., a Delaware corporation (the “Company”),
and Lasalle Bank National Association, a national banking association, as
trustee (the “Trustee”):

WHEREAS, for its lawful
corporate purposes, the Company has duly authorized the execution and delivery
of this Indenture to provide for the issuance of unsecured subordinated debt
securities (hereinafter referred to as the “Securities”), in an unlimited
aggregate principal amount to be issued from time to time in one or more series
as in this Indenture provided, as registered Securities without coupons, to be
authenticated by the certificate of the Trustee;

WHEREAS, to provide the
terms and conditions upon which the Securities are to be authenticated, issued
and delivered, the Company has duly authorized the execution of this Indenture;
and

WHEREAS, all things
necessary to make this Indenture a valid agreement of the Company, in
accordance with its terms, have been done.

NOW, THEREFORE, in
consideration of the premises and the purchase of the Securities by the holders
thereof, it is mutually covenanted and agreed as follows for the equal and
ratable benefit of the holders of Securities:

ARTICLE
I

DEFINITIONS

SECTION 1.01  Definitions of Terms.

The terms defined in this
Section (except as in this Indenture otherwise expressly provided or unless the
context otherwise requires) for all purposes of this Indenture and of any
indenture supplemental hereto shall have the respective meanings specified in
this Section and shall include the plural as well as the singular.  All other terms used in this Indenture that
are defined in the Trust Indenture Act of 1939, as amended, or that are by
reference in such Act defined in the Securities Act of 1933, as amended (except
as herein otherwise expressly provided or unless the context otherwise
requires), shall have the meanings assigned to such terms in said Trust
Indenture Act and in said Securities Act as in force at the date of the
execution of this instrument.

“Authenticating Agent”
means an authenticating agent with respect to all or any of the series of
Securities appointed with respect to all or any series of the Securities by the
Trustee pursuant to Section 2.10.

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

“Board of Directors”
means the Board of Directors of the Company or any duly authorized committee of
such Board.

 1
 

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

“Business Day” means,
with respect to any series of Securities, a day other than Saturday, Sunday or
a day on which state or federally chartered banking institutions in New York,
New York or the state in which the Corporate Trust Office is located are not
required by law or regulation to be open.

“Capital Stock” of any
Person means any and all shares, interests, rights to purchase, warrants,
options, participations or other equivalents of or interests in (however
designated) equity of such Person, but excluding any debt securities
convertible into such equity.

“Certificate” means a
certificate signed by the principal executive officer, the principal financial
officer or the principal accounting officer of the Company.  The Certificate need not comply with the
provisions of Section 13.05.

“Company” means NovaMed,
Inc., a corporation duly organized and existing under the laws of the State of
Delaware, and, subject to the provisions of Article Ten, shall also include its
successors and assigns.

“Corporate Trust Office”
means the office of the Trustee at which, at any particular time, its corporate
trust business shall be principally administered, which office at the date
hereof is located at 135 South LaSalle Street, Suite 1560, Chicago, Illinois
60603, Attention: Corporate Debt – NovaMed Inc. Debt Securities.

“Custodian” means any
receiver, trustee, assignee, liquidator, or similar official under any
Bankruptcy Law.

“Default” means any
event, act or condition that with notice or lapse of time, or both, would
constitute an Event of Default.

“Depositary” means, with
respect to Securities of any series, for which the Company shall determine that
such Securities will be issued as a Global Security, The Depository Trust
Company, New York, New York, another clearing agency, or any successor
registered as a clearing agency under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), or other applicable statute or regulation, which,
in each case, shall be designated by the Company pursuant to either Section
2.01 or 2.11.

“Event of Default” means,
with respect to Securities of a particular series any event specified in Section
6.01, continued for the period of time, if any, therein designated.

“Global Security” means,
with respect to any series of Securities, a Security executed by the Company
and delivered by the Trustee to the Depositary or pursuant to the Depositary’s
instruction, all in accordance with the Indenture, which shall be registered in
the name of the Depositary or its nominee.

 2
 

“Governmental Obligations”
means securities that are (i) direct obligations of the United States of
America for the payment of which its full faith and credit is pledged or (ii)
obligations of a Person controlled or supervised by and acting as an agency or
instrumentality of the United States of America, the payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United
States of America that, in either case, are not callable or redeemable at the
option of the issuer thereof, and shall also include a depositary receipt
issued by a bank (as defined in Section 3(a)(2) of the Securities Act of 1933,
as amended) as custodian with respect to any such Governmental Obligation or a
specific payment of principal of or interest on any such Governmental
Obligation held by such custodian for the account of the holder of such
depositary receipt; provided, however, that (except as required by law) such
custodian is not authorized to make any deduction from the amount payable to
the holder of such depositary receipt from any amount received by the custodian
in respect of the Governmental Obligation or the specific payment of principal
of or interest on the Governmental Obligation evidenced by such depositary
receipt.

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

“Indenture” means this
instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered
into in accordance with the terms hereof.

“Interest Payment Date,”
when used with respect to any installment of interest on a Security of a
particular series, means the date specified in such Security or in a Board
Resolution or in an indenture supplemental hereto with respect to such series
as the fixed date on which an installment of interest with respect to
Securities of that series is due and payable.

“Obligations” means, with
respect to any indebtedness, any principal, interest, penalties, fees,
indemnifications, reimbursements, damages, and other liabilities payable under
the documentation governing such indebtedness.

“Officers’ Certificate”
means a certificate signed by the President or a Executive Vice President and
by the Treasurer or an Assistant Treasurer or the Controller or an Assistant
Controller or the Secretary or an Assistant Secretary of the Company that is
delivered to the Trustee in accordance with the terms hereof.  Each such certificate shall include the
statements provided for in Section 13.05, if and to the extent required by the
provisions thereof.

“Opinion of Counsel”
means an opinion in writing of legal counsel, who may be an employee of or
counsel for the Company, that is delivered to the Trustee in accordance with
the terms hereof.  Each such opinion
shall include the statements provided for in Section 13.05, if and to the
extent required by the provisions thereof.

“Outstanding,” when used
with reference to Securities of any series, means, subject to the provisions of
Section 8.04, as of any particular time, all Securities of that series
theretofore authenticated and delivered by the Trustee under this Indenture,
except (a) Securities theretofore canceled by the Trustee or any Paying Agent,
or delivered to the Trustee or any Paying Agent for cancellation or that have
previously been canceled; (b) Securities or portions thereof for the

 3
 

payment or
redemption of which moneys or Governmental Obligations in the necessary amount
shall have been deposited in trust with the Trustee or with any Paying Agent
(other than the Company) or shall have been set aside and segregated in trust
by the Company (if the Company shall act as its own Paying Agent); provided,
however, that if such Securities or portions of such Securities are to be
redeemed prior to the maturity thereof, notice of such redemption shall have
been given as in Article Three provided, or provision satisfactory to the
Trustee shall have been made for giving such notice; and (c) Securities in lieu
of or in substitution for which other Securities shall have been authenticated
and delivered pursuant to the terms of Section 2.07.

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

“Predecessor Security” of
any particular Security means every previous Security evidencing all or a
portion of the same debt as that evidenced by such particular Security; and,
for the purposes of this definition, any Security authenticated and delivered
under Section 2.07 in lieu of a lost, destroyed or stolen Security shall be
deemed to evidence the same debt as the lost, destroyed or stolen Security.

“Responsible Officer”
when used with respect to the Trustee means the President, any Vice President,
the Secretary, the Treasurer, any trust officer, any corporate trust officer or
any other officer or assistant officer of the Trustee customarily performing
functions similar to those performed by the Persons who at the time shall be
such officers, respectively, or to whom any corporate trust matter is referred
because of his or her knowledge of and familiarity with the particular subject.

“Securities” means the
debt Securities authenticated and delivered under this Indenture.

“Securityholder,” “holder
of Securities,” “registered holder” or other similar term, means the Person or
Persons in whose name or names a particular Security shall be registered on the
books of the Company kept for that purpose in accordance with the terms of this
Indenture.

“Senior Credit Facility”
means the Company’s Sixth Amended and Restated Credit Agreement dated as of
February 7, 2007 among the Company, National City Bank, as Agent, and the
lenders signatory thereto together with any agreements, instruments and
documents executed or delivered pursuant to or in connection with such Senior
Credit Facility (including, without limitation, any guarantees and security
documents), in each case as such facility or such agreements, instruments or
documents may be amended, supplemented, extended, renewed, refinanced or
otherwise modified from time to time.

“Senior Indebtedness”
means the following obligations of the Company, whether outstanding on the date
of this Indenture or thereafter incurred (1) all Obligations of the Company
under the Senior Credit Facility and (2) all Obligations in respect of
indebtedness of the Company for borrowed money; provided that Senior
Indebtedness shall not include any liability or Obligation of the Company in
respect of (a) U.S. federal, state, local, non-U.S. or other taxes; (b) any
indebtedness among or between the Company and any Subsidiary or affiliate (c)
any trade payables; (d) any Capital Stock; (e) any indebtedness that, when
incurred and

 4
 

without respect to
any election under Section 1111(b) of Title 11, United States Code, is without
recourse to the Company; or (f) any indebtedness that, by its express terms, is
not senior in right of payment to the Notes, or is subordinated in right of
payment to any other indebtedness of the Company.

“Significant Subsidiary”
means any “significant subsidiary” of the Company within the meaning of Rule
1.02(w) of Regulation S-X under the Securities Act of 1933, as amended or any
successor provision.

“Subsidiary” means, with
respect to any Person, (i) any corporation at least a majority of whose
outstanding Voting Stock shall at the time be owned, directly or indirectly, by
such Person or by one or more of its Subsidiaries or by such Person and one or
more of its Subsidiaries, (ii) any general partnership, joint venture or
similar entity, at least a majority of whose outstanding partnership or similar
interests shall at the time be owned by such Person, or by one or more of its
Subsidiaries, or by such Person and one or more of its Subsidiaries and
(iii) any limited partnership of which such Person or any of its Subsidiaries
is a general partner.

“Trustee” means LaSalle
Bank National Association, and, subject to the provisions of Article Seven,
shall also include its successors and assigns, and, if at any time there is
more than one Person acting in such capacity hereunder, “Trustee” shall mean
each such Person.  The term “Trustee” as
used with respect to a particular series of the Securities shall mean the
trustee with respect to that series.

“Trust Indenture Act”
means the Trust Indenture Act of 1939, as amended, subject to the provisions of
Sections 9.01, 9.02 and 10.01, as in effect at the date of execution of this
instrument.

“Voting Stock,” as
applied to stock of any Person, means shares, interests, participations or
other equivalents in the equity interest (however designated) in such Person
having ordinary voting power for the election of the directors (or the
equivalent) of such Person, other than shares, interests, participations or
other equivalents having such power only by reason of the occurrence of a
contingency.

ARTICLE
II

ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES

SECTION 2.01  Designation and Terms of Securities.

(a)           The aggregate principal amount of
Securities that may be authenticated and delivered under this Indenture is unlimited.  The Securities may be issued in one or more
series up to the aggregate principal amount of Securities of that series from
time to time authorized by or pursuant to a Board Resolution of the Company or
pursuant to one or more indentures supplemental hereto.  Prior to the initial issuance of Securities
of any series, there shall be established in or pursuant to a Board Resolution,
and set forth in an Officers’ Certificate, or established in one or more
indentures supplemental hereto:

 5
 

(1)           the title of the Securities of that
series (which shall distinguish the Securities of that series from all other
Securities);

(2)           any limit upon the aggregate
principal amount of the Securities of that series that may be authenticated and
delivered under this Indenture (except for Securities authenticated and
delivered upon registration of transfer of, or in exchange for, or in lieu of,
other Securities of that series);

(3)           the date or dates on which the
principal of the Securities of that series is payable and the place(s) of
payment;

(4)           the rate or rates at which the
Securities of that series shall bear interest or the manner of calculation of
such rate or rates, if any;

(5)           the date or dates from which such
interest shall accrue, the Interest Payment Dates on which such interest will
be payable or the manner of determination of such Interest Payment Dates, the
place(s) of payment, and the record date for the determination of holders to
whom interest is payable on any such Interest Payment Dates;

(6)           the right, if any, to extend the
interest payment periods and the duration of such extension;

(7)           the period or periods within which,
the price or prices at which and the terms and conditions upon which,
Securities of that series may be redeemed, in whole or in part, at the option
of the Company;

(8)           the obligation, if any, of the
Company to redeem or purchase Securities of that series pursuant to any sinking
fund or analogous provisions (including payments made in cash in satisfaction
of future sinking fund obligations) or at the option of a holder thereof and
the period or periods within which, the price or prices at which, and the terms
and conditions upon which, Securities of that series shall be redeemed or
purchased, in whole or in part, pursuant to such obligation;

(9)           the form of the Securities of that
series including the form of the certificate of authentication for such series;

(10)         if other than denominations of one
thousand U.S. dollars ($1,000) or any integral multiple thereof, the
denominations in which the Securities of that series shall be issuable;

(11)         any and all other terms with respect to
such series (which terms shall not be inconsistent with the terms of this
Indenture, as amended by any supplemental indenture) including any terms which
may be required by or advisable under United States laws or regulations or
advisable in connection with the marketing of Securities of that series;

(12)         whether the Securities are issuable as
a Global Security and, in such case, the identity of the Depositary for such
series;

 6
 

(13)         whether the Securities will be
convertible into shares of common stock or other securities of the Company and,
if so, the terms and conditions upon which such Securities will be so
convertible, including the conversion price and the conversion period;

(14)         if other than the principal amount
thereof, the portion of the principal amount of Securities of that series which
shall be payable upon declaration of acceleration of the maturity thereof
pursuant to Section 6.01;

(15)         the subordination terms of the
Securities of that series; and

(16)         any additional or different Events of
Default or restrictive covenants provided for with respect to the Securities of
that series.

All Securities of any one
series shall be substantially identical except as to denomination and except as
may otherwise be provided in or pursuant to any such Board Resolution or in any
indentures supplemental hereto.

If any of the terms of
the series are established by action taken pursuant to a Board Resolution, a
copy of an appropriate record of such action shall be certified by the
Secretary or an Assistant Secretary of the Company and delivered to the Trustee
at or prior to the delivery of the Officers’ Certificate setting forth the
terms of the series.

Securities of any particular
series may be issued at various times, with different dates on which the
principal or any installment of principal is payable, with different rates of
interest, if any, or different methods by which rates of interest may be
determined, with different dates on which such interest may be payable and with
different redemption dates.

SECTION 2.02  Form of Securities and Trustee’s Certificate.

The Securities of any
series and the Trustee’s certificate of authentication to be borne by such
Securities shall be substantially of the tenor and purport as set forth in one
or more indentures supplemental hereto or as provided in a Board Resolution and
as set forth in an Officers’ Certificate and may have such letters, numbers or
other marks of identification or designation and such legends or endorsements
printed, lithographed or engraved thereon as the Company may deem appropriate
and as are not inconsistent with the provisions of this Indenture, or as may be
required to comply with any law or with any rule or regulation made pursuant
thereto or with any rule or regulation of any stock exchange on which
Securities of that series may be listed, or to conform to usage.

SECTION 2.03  Denominations; Provisions for Payment.

The Securities shall be
issuable as registered Securities and in the denominations of one thousand U.S.
dollars ($1,000) or any integral multiple thereof, subject to Section
2.01(10).  The Securities of a particular
series shall bear interest payable on the dates and at the rate specified with
respect to that series.  The principal of
and the interest on the Securities of any series, as well as any premium
thereon in case of redemption thereof prior to maturity, shall be payable in
the coin or currency of the United States of America that at the time is legal
tender for public and private debt, at the office or agency of the Company
maintained for that purpose in New York

 7
 

City or Chicago,
Illinois.  Each Security shall be dated
the date of its authentication.  Interest
on the Securities shall be computed on the basis of a 360-day year composed of
twelve 30-day months.

The interest installment
on any Security that is payable, and is punctually paid or duly provided for,
on any Interest Payment Date for Securities of that series shall be paid to the
Person in whose name said Security (or one or more Predecessor Securities) is
registered at the close of business on the regular record date for such
interest installment.  In the event that
any Security of a particular series or portion thereof is called for redemption
and the redemption date is subsequent to a regular record date with respect to
any Interest Payment Date and prior to such Interest Payment Date, interest on
such Security will be paid upon presentation and surrender of such Security as
provided in Section 3.03.

Any interest on any
Security that is payable, but is not punctually paid or duly provided for, on
any Interest Payment Date for Securities of the same series (herein called “Defaulted
Interest”) shall forthwith cease to be payable to the registered holder on the
relevant regular record date by virtue of having been such holder; and such
Defaulted Interest shall be paid by the Company, at its election, as provided
in clause (1) or clause (2) below:

(1)           The Company may make payment of any
Defaulted Interest on Securities to the Persons in whose names such Securities
(or their respective Predecessor Securities) are registered at the close of
business on a special record date for the payment of such Defaulted Interest,
which shall be fixed in the following manner: 
the Company shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on each such Security and the date of
the proposed payment, and at the same time the Company shall deposit with the
Trustee an amount of money equal to the aggregate amount proposed to be paid in
respect of such Defaulted Interest or shall make arrangements satisfactory to
the Trustee for such deposit prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the Persons
entitled to such Defaulted Interest as in this clause provided.  Thereupon the Trustee shall fix a special
record date for the payment of such Defaulted Interest which shall not be more
than 15 nor less than 10 days prior to the date of the proposed payment and not
less than 10 days after the receipt by the Trustee of the notice of the
proposed payment.  The Trustee shall
promptly notify the Company of such special record date and, in the name and at
the expense of the Company, shall cause notice of the proposed payment of such
Defaulted Interest and the special record date therefor to be mailed, first
class postage prepaid, to each Securityholder at his or her address as it
appears in the Security Register (as hereinafter defined), not less than 10
days prior to such special record date. 
Notice of the proposed payment of such Defaulted Interest and the
special record date therefor having been mailed as aforesaid, such Defaulted
Interest shall be paid to the Persons in whose names such Securities (or their
respective Predecessor Securities) are registered on such special record date.

(2)           The Company may make payment of any
Defaulted Interest on any Securities in any other lawful manner not
inconsistent with the requirements of any securities exchange on which such
Securities may be listed, and upon such notice as may be required by such
exchange, if, after notice given by the Company to the Trustee of the proposed
payment pursuant to this clause, such manner of payment shall be deemed
practicable by the Trustee.

 8
 

Unless otherwise set
forth in a Board Resolution or one or more indentures supplemental hereto
establishing the terms of any series of Securities pursuant to Section 2.01
hereof, the term “regular record date” as used in this Section with respect to
a series of Securities with respect to any Interest Payment Date for such
series shall mean either the fifteenth day of the month immediately preceding
the month in which an Interest Payment Date established for such series pursuant
to Section 2.01 hereof shall occur, if such Interest Payment Date is the first
day of a month, or the last day of the month immediately preceding the month in
which an Interest Payment Date established for such series pursuant to Section
2.01 hereof shall occur, if such Interest Payment Date is the fifteenth day of
a month, whether or not such date is a Business Day.

Subject to the foregoing
provisions of this Section, each Security of a series delivered under this
Indenture upon transfer of or in exchange for or in lieu of any other Security
of such series shall carry the rights to interest accrued and unpaid, and to
accrue, that were carried by such other Security.

SECTION 2.04  Execution and Authentications.

The Securities shall be
signed on behalf of the Company by its President, or one of its Executive Vice
Presidents, or its Treasurer, or one of its Assistant Treasurers, or its
Secretary, or one of its Assistant Secretaries, under its corporate seal
attested by its Secretary or one of its Assistant Secretaries.  Signatures may be in the form of a manual or
facsimile signature.  The Company may use
the facsimile signature of any Person who shall have been a President or
Executive Vice President thereof, or of any Person who shall have been a Secretary
or Assistant Secretary thereof, notwithstanding the fact that at the time the
Securities shall be authenticated and delivered or disposed of such Person
shall have ceased to be the President or a Executive Vice President, or the
Secretary or an Assistant Secretary, of the Company.  The seal of the Company may be in the form of
a facsimile of such seal and may be impressed, affixed, imprinted or otherwise
reproduced on the Securities.  The
Securities may contain such notations, legends or endorsements required by law,
stock exchange rule or usage.  Each
Security shall be dated the date of its authentication by the Trustee.

A Security shall not be
valid until authenticated manually by an authorized signatory of the Trustee,
or by an Authenticating Agent.  Such
signature shall be conclusive evidence that the Security so authenticated has
been duly authenticated and delivered hereunder and that the holder is entitled
to the benefits of this Indenture.  At
any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities of any series executed by the
Company to the Trustee for authentication, together with a written order of the
Company for the authentication and delivery of such Securities, signed by its President
or any Executive Vice President and its Secretary or any Assistant Secretary,
and the Trustee in accordance with such written order shall authenticate and
deliver such Securities.

In authenticating such
Securities and accepting the additional responsibilities under this Indenture
in relation to such Securities, the Trustee shall be entitled to receive, and
(subject to Section 7.01) shall be fully protected in relying upon, an Opinion
of Counsel stating that the form and terms thereof have been established in
conformity with the provisions of this Indenture.

 9

The Trustee shall not be
required to authenticate such Securities if the issue of such Securities
pursuant to this Indenture will affect the Trustee’s own rights, duties or
immunities under the Securities and this Indenture or otherwise in a manner
that is not reasonably acceptable to the Trustee.

SECTION 2.05  Registration of Transfer and Exchange.

(a)                                  Securities
of any series may be exchanged upon presentation thereof at the office or
agency of the Company designated for such purpose in New York City or Chicago,
Illinois, for other Securities of such series of authorized denominations, and
for a like aggregate principal amount, upon payment of a sum sufficient to
cover any tax or other governmental charge in relation thereto, all as provided
in this Section.  In respect of any
Securities so surrendered for exchange, the Company shall execute, the Trustee
shall authenticate and such office or agency shall deliver in exchange therefor
the Security or Securities of the same series that the Securityholder making
the exchange shall be entitled to receive, bearing numbers not
contemporaneously outstanding.

(b)                                 The
Company shall keep, or cause to be kept, at an office or agency designated for
such purpose in New York City or Chicago, Illinois, or such other location
designated by the Company a register or registers (herein referred to as the “Security
Register”) in which, subject to such reasonable regulations as it may
prescribe, the Company shall register the Securities and the transfers of
Securities as in this Article provided and which at all reasonable times shall
be open for inspection by the Trustee. 
The registrar for the purpose of registering Securities and transfer of
Securities as herein provided shall be appointed as authorized by a Board
Resolution (the “Security Registrar”).

The Company initially
appoints the Trustee to act as Securities Registrar.

Upon surrender for
transfer of any Security at the office or agency of the Company designated for
such purpose, the Company shall execute, the Trustee shall authenticate and
such office or agency shall deliver in the name of the transferee or
transferees a new Security or Securities of the same series as the Security
presented for a like aggregate principal amount.

All Securities presented
or surrendered for exchange or registration of transfer, as provided in this
Section, shall be accompanied (if so required by the Company or the Security
Registrar) by a written instrument or instruments of transfer, in form
satisfactory to the Company or the Security Registrar, duly executed by the
registered holder or by such holder’s duly authorized attorney in writing.

(c)                                  No
service charge shall be made for any exchange or registration of transfer of
Securities, or issue of new Securities in case of partial redemption of any
series, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge in relation thereto, other than exchanges
pursuant to Section 2.06, Section 3.03(b) and Section 9.04 not involving any
transfer.

(d)                                 The
Company shall not be required (1) to issue, exchange or register the transfer
of any Securities during a period beginning at the opening of business 15 days
before the day of the mailing of a notice of redemption of less than all the
Outstanding Securities of the same series

 10
 

and ending at the close
of business on the day of such mailing, nor (2) to register the transfer of or
exchange any Securities of any series or portions thereof called for
redemption.  The provisions of this
Section 2.05 are, with respect to any Global Security, subject to Section 2.11
hereof.

(e)                                  The
Corporate Trust Office of the Trustee shall be the office or agency so
designated by the Trustee for the purposes of this Section 2.05.

SECTION 2.06  Temporary Securities.

Pending the preparation
of definitive Securities of any series, the Company may execute, and the
Trustee shall authenticate and deliver, temporary Securities (printed,
lithographed or typewritten) of any authorized denomination.  Such temporary Securities shall be
substantially in the form of the definitive Securities in lieu of which they
are issued, but with such omissions, insertions and variations as may be
appropriate for temporary Securities, all as may be determined by the
Company.  Every temporary Security of any
series shall be executed by the Company and be authenticated by the Trustee
upon the same conditions and in substantially the same manner, and with like
effect, as the definitive Securities of such series.  Without unnecessary delay the Company will
execute and will furnish definitive Securities of such series and thereupon any
or all temporary Securities of such series may be surrendered in exchange
therefor (without charge to the holders), at an office or agency designated for
the purpose in New York City or Chicago, Illinois, and the Trustee shall
authenticate and such office or agency shall deliver in exchange for such
temporary Securities an equal aggregate principal amount of definitive
Securities of such series, unless the Company advises the Trustee to the effect
that definitive Securities need not be executed and furnished until further
notice from the Company.  Until so
exchanged, the temporary Securities of such series shall be entitled to the
same benefits under this Indenture as definitive Securities of such series
authenticated and delivered hereunder.

SECTION 2.07  Mutilated, Destroyed, Lost or Stolen
Securities.

In case any temporary or
definitive Security shall become mutilated or be destroyed, lost or stolen, the
Company (subject to the next succeeding sentence) shall execute, and upon the
Company’s request, the Trustee (subject as aforesaid) shall authenticate and
deliver, a new Security of the same series, bearing a number not
contemporaneously outstanding, in exchange and substitution for the mutilated
Security, or in lieu of and in substitution for the Security so destroyed, lost
or stolen.  In every case the applicant
for a substituted Security shall furnish to the Company and the Trustee such
security or indemnity as may be required by them to save each of them harmless,
and, in every case of destruction, loss or theft, the applicant shall also
furnish to the Company and the Trustee evidence to their satisfaction of the
destruction, loss or theft of the applicant’s Security and of the ownership
thereof.  The Trustee may authenticate
any such substituted Security and deliver the same upon the written request or
authorization of any officer of the Company. 
Upon the issuance of any substituted Security, the Company may require
the payment of a sum sufficient to cover any tax or other governmental charge
that may be imposed in relation thereto and any other expenses (including the
fees and expenses of the Trustee) connected therewith.  In case any Security that has matured or is
about to mature shall become mutilated or be destroyed, lost or stolen, the
Company may, instead of issuing a substitute Security, pay or authorize the
payment of the same (without surrender thereof except in the case

 11
 

of a mutilated
Security) if the applicant for such payment shall furnish to the Company and
the Trustee such security or indemnity as they may require to save each of them
harmless, and, in case of destruction, loss or theft, evidence to the
satisfaction of the Company and the Trustee of the destruction, loss or theft
of such Security and of the ownership thereof.

Every replacement
Security issued pursuant to the provisions of this Section shall constitute an
additional contractual obligation of the Company whether or not the mutilated,
destroyed, lost or stolen Security shall be found at any time, or be
enforceable by anyone, and shall be entitled to all the benefits of this
Indenture equally and proportionately with any and all other Securities of the
same series duly issued hereunder.  All
Securities shall be held and owned upon the express condition that the
foregoing provisions are exclusive with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Securities, and shall preclude (to the
extent lawful) any and all other rights or remedies, notwithstanding any law or
statute existing or hereafter enacted to the contrary with respect to the
replacement or payment of negotiable instruments or other securities without
their surrender.

SECTION 2.08  Cancellation.

All Securities
surrendered for the purpose of payment, redemption, exchange or registration of
transfer shall, if surrendered to the Company or any Paying Agent, be delivered
to the Trustee for cancellation, or, if surrendered to the Trustee, shall be
cancelled by it, and no Securities shall be issued in lieu thereof except as
expressly required or permitted by any of the provisions of this
Indenture.  On request of the Company at
the time of such surrender, the Trustee shall deliver to the Company canceled
Securities held by the Trustee.  In the
absence of such request the Trustee may dispose of canceled Securities in
accordance with its standard procedures and deliver a certificate of
disposition to the Company.  If the
Company shall otherwise acquire any of the Securities, however, such
acquisition shall not operate as a redemption or satisfaction of the
indebtedness represented by such Securities unless and until the same are
delivered to the Trustee for cancellation.

SECTION 2.09  Benefits of Indenture.

Nothing in this Indenture
or in the Securities, express or implied, shall give or be construed to give to
any Person, other than the parties hereto and the holders of the Securities
(and, with respect to the provisions of Article Fourteen, the holders of Senior
Indebtedness), any legal or equitable right, remedy or claim under or in
respect of this Indenture, or under any covenant, condition or provision herein
contained; all such covenants, conditions and provisions being for the sole
benefit of the parties hereto and of the holders of the Securities (and, with
respect to the provisions of Article Fourteen, the holders of Senior
Indebtedness).

SECTION 2.10  Authenticating Agent.

So long as any of the
Securities of any series remain Outstanding there may be an Authenticating
Agent for any or all such series of Securities which the Trustee shall have the
right to appoint.  Said Authenticating
Agent shall be authorized to act on behalf of the Trustee to authenticate
Securities of such series issued upon exchange, transfer or partial redemption
thereof, and Securities so authenticated shall be entitled to the benefits of
this Indenture and shall

 12
 

be valid and
obligatory for all purposes as if authenticated by the Trustee hereunder.  All references in this Indenture to the
authentication of Securities by the Trustee shall be deemed to include
authentication by an Authenticating Agent for such series.  Each Authenticating Agent shall be acceptable
to the Company and shall be a corporation that has a combined capital and
surplus, as most recently reported or determined by it, sufficient under the
laws of any jurisdiction under which it is organized or in which it is doing
business to conduct a trust business, and that is otherwise authorized under
such laws to conduct such business and is subject to supervision or examination
by Federal or State authorities.  If at
any time any Authenticating Agent shall cease to be eligible in accordance with
these provisions, it shall resign immediately.

Any Authenticating Agent
may at any time resign by giving written notice of resignation to the Trustee
and to the Company.  The Trustee may at
any time (and upon request by the Company shall) terminate the agency of any
Authenticating Agent by giving written notice of termination to such
Authenticating Agent and to the Company. 
Upon resignation, termination or cessation of eligibility of any
Authenticating Agent, the Trustee may appoint an eligible successor
Authenticating Agent acceptable to the Company. 
Any successor Authenticating Agent, upon acceptance of its appointment
hereunder, shall become vested with all the rights, powers and duties of its
predecessor hereunder as if originally named as an Authenticating Agent
pursuant hereto.

The Company initially
appoints the Trustee to act as Authenticating Agent.

SECTION 2.11  Global Securities.

(a)                                  If
the Company shall establish pursuant to Section 2.01 that the Securities of a
particular series are to be issued as a Global Security, then the Company shall
execute and the Trustee shall, in accordance with Section 2.04, authenticate
and deliver, a Global Security that (1) shall represent, and shall be
denominated in an amount equal to the aggregate principal amount of, all of the
Outstanding Securities of such series, (2) shall be registered in the name of
the Depositary or its nominee, (3) shall be delivered by the Trustee to the
Depositary or pursuant to the Depositary’s instruction and (4) shall bear a
legend substantially to the following effect: 
“Except as otherwise provided in Section 2.11 of the Indenture, this
Security may be transferred, in whole but not in part, only to another nominee
of the Depositary or to a successor Depositary or to a nominee of such
successor Depositary.”

(b)                                 Notwithstanding
the provisions of Section 2.05, the Global Security of a series may be
transferred, in whole but not in part and in the manner provided in Section
2.05, only to another nominee of the Depositary for such series, or to a
successor Depositary for such series selected or approved by the Company or to
a nominee of such successor Depositary.

(c)                                  If
at any time (i) the Depositary for a series of the Securities notifies the
Company that it is unwilling or unable to continue as Depositary for such
series or if at any time the Depositary for such series shall no longer be registered
or in good standing under the Exchange Act, or other applicable statute or
regulation, and a successor Depositary for such series is not appointed by the
Company within 90 days after the Company receives such notice or becomes aware
of such condition, as the case may be, or (ii) an Event of Default with respect
to a series of Securities has

 13
 

occurred and is
continuing and the Security Registrar has received a request from the
Depositary to exchange such Global Note for Definitive Notes this Section 2.11
shall no longer be applicable to the Securities of such series and the Company
will execute and, subject to Section 2.05, the Trustee will authenticate and
deliver the Securities of such series in definitive registered form without
coupons, in authorized denominations, and in an aggregate principal amount
equal to the principal amount of the Global Security of such series in exchange
for such Global Security.  In addition,
the Company may at any time determine that the Securities of any series shall
no longer be represented by a Global Security and that the provisions of this
Section 2.11 shall no longer apply to the Securities of such series.  In such event the Company will execute and,
subject to Section 2.05, the Trustee, upon receipt of an Officers’ Certificate
evidencing such determination by the Company, will authenticate and deliver the
Securities of such series in definitive registered form without coupons, in
authorized denominations, and in an aggregate principal amount equal to the
principal amount of the Global Security of such series in exchange for such
Global Security.  Upon the exchange of
the Global Security for such Securities in definitive registered form without
coupons, in authorized denominations, the Global Security shall be canceled by
the Trustee.  Such Securities in
definitive registered form issued in exchange for the Global Security pursuant
to this Section 2.11(c) shall be registered in such names and in such
authorized denominations as the Depositary, pursuant to instructions from its
direct or indirect participants or otherwise, shall instruct the Trustee.  The Trustee shall deliver such Securities to
the Depositary for delivery to the Persons in whose names such Securities are
so registered.

ARTICLE
III

REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS

SECTION 3.01  Redemption.

The Company may redeem
the Securities of any series issued hereunder on and after the dates and in
accordance with the terms established for such series pursuant to Section 2.01
hereof.

SECTION 3.02  Notice of Redemption.

(a)                                  In
case the Company shall desire to exercise such right to redeem all or, as the
case may be, a portion of the Securities of any series in accordance with the
right reserved so to do, the Company shall, or shall cause the Trustee to, give
notice of such redemption to holders of the Securities of such series to be
redeemed by providing via electronic mail, a notice of such redemption not less
than 30 days and not more than 90 days before the date fixed for redemption of
that series to such holders at their last addresses as they shall appear upon
the Security Register unless a shorter period is specified in the Securities to
be redeemed.  Any notice that is given in
the manner herein provided shall be conclusively presumed to have been duly
given, whether or not the registered holder receives the notice.  In any case, failure duly to give such notice
to the holder of any Security of any series designated for redemption in whole
or in part, or any defect in the notice, shall not affect the validity of the
proceedings for the redemption of any other Securities of such series or any
other series.  In the case of any
redemption of Securities prior to the expiration of any restriction on such
redemption provided in the terms of

 14
 

such Securities or
elsewhere in this Indenture, the Company shall furnish the Trustee with an
Officers’ Certificate evidencing compliance with any such restriction.

Each such notice of
redemption shall specify the date fixed for redemption and the redemption price
at which Securities of that series are to be redeemed, and shall state that
payment of the redemption price of such Securities to be redeemed will be made
at the office or agency of the Company in New York City or Chicago, Illinois,
upon presentation and surrender of such Securities, that interest accrued to
the date fixed for redemption will be paid as specified in said notice, that
from and after said date interest will cease to accrue and that the redemption
is for a sinking fund, if such is the case. 
If less than all the Securities of a series are to be redeemed, the
notice to the holders of Securities of that series to be redeemed in whole or
in part shall specify the particular Securities to be so redeemed.  In case any Security is to be redeemed in part
only, the notice that relates to such Security shall state the portion of the
principal amount thereof to be redeemed, and shall state that on and after the
redemption date, upon surrender of such Security, a new Security or Securities
of such series in principal amount equal to the unredeemed portion thereof will
be issued.

(b)                                 If
less than all the Securities of a series are to be redeemed, the Company shall
give the Trustee at least 45 days’ notice in advance of the date fixed for
redemption as to the aggregate principal amount of Securities of the series to
be redeemed, and thereupon the Trustee shall select, by lot or in such other
manner as it shall deem appropriate and fair in its discretion and that may
provide for the selection of a portion or portions (equal to one thousand U.S.
dollars ($1,000) or any integral multiple thereof) of the principal amount of
such Securities of a denomination larger than $1,000, the Securities to be
redeemed and shall thereafter promptly notify the Company in writing of the
numbers of the Securities to be redeemed, in whole or in part.  The Company may, if and whenever it shall so
elect, by delivery of instructions signed on its behalf by its President or any
Executive Vice President, instruct the Trustee or any Paying Agent to call all
or any part of the Securities of a particular series for redemption and to give
notice of redemption in the manner set forth in this Section, such notice to be
in the name of the Company or its own name as the Trustee or such Paying Agent
may deem advisable.  In any case in which
notice of redemption is to be given by the Trustee or any such Paying Agent,
the Company shall deliver or cause to be delivered to, or permit to remain
with, the Trustee or such Paying Agent, as the case may be, such Security
Register, transfer books or other records, or suitable copies or extracts
therefrom, sufficient to enable the Trustee or such Paying Agent to give any
notice by mail that may be required under the provisions of this Section.

SECTION 3.03  Payment Upon Redemption.

(a)                                  If
the giving of notice of redemption shall have been completed as above provided,
the Securities or portions of Securities of the series to be redeemed specified
in such notice shall become due and payable on the date and at the place stated
in such notice at the applicable redemption price, together with interest
accrued to the date fixed for redemption and interest on such Securities or
portions of Securities shall cease to accrue on and after the date fixed for
redemption, unless the Company shall default in the payment of such redemption
price and accrued interest with respect to any such Security or portion
thereof.  On presentation and surrender
of such Securities on or after the date fixed for redemption at the place of
payment specified in the notice, said Securities shall be paid and redeemed at
the applicable redemption

 15
 

price for such series,
together with interest accrued thereon to the date fixed for redemption (but if
the date fixed for redemption is an interest payment date, the interest
installment payable on such date shall be payable to the registered holder at
the close of business on the applicable record date pursuant to Section 2.03).

(b)                                 Upon
presentation of any Security of such series that is to be redeemed in part
only, the Company shall execute and the Trustee shall authenticate and the
office or agency where the Security is presented shall deliver to the holder
thereof, at the expense of the Company, a new Security of the same series of
authorized denominations in principal amount equal to the unredeemed portion of
the Security so presented.

SECTION 3.04  Sinking Fund.

The provisions of
Sections 3.04, 3.05 and 3.06 shall be applicable to any sinking fund for the
retirement of Securities of a series, except as otherwise specified as
contemplated by Section 2.01 for Securities of such series.

The minimum amount of any
sinking fund payment provided for by the terms of Securities of any series is
herein referred to as a “mandatory sinking fund payment,” and any payment in
excess of such minimum amount provided for by the terms of Securities of any
series is herein referred to as an “optional sinking fund payment”.  If provided for by the terms of Securities of
any series, the cash amount of any sinking fund payment may be subject to
reduction as provided in Section 3.05. 
Each sinking fund payment shall be applied to the redemption of
Securities of any series as provided for by the terms of Securities of such
series.

SECTION 3.05  Satisfaction of Sinking Fund Payments with
Securities.

The Company (a) may
deliver Outstanding Securities of a series (other than any Securities
previously called for redemption) and (b) may apply as a credit Securities of a
series that have been redeemed either at the election of the Company pursuant
to the terms of such Securities or through the application of permitted
optional sinking fund payments pursuant to the terms of such Securities, in
each case in satisfaction of all or any part of any sinking fund payment with
respect to the Securities of such series required to be made pursuant to the
terms of such Securities, provided that such Securities have not been
previously so credited.  Such Securities
shall be received and credited for such purpose by the Trustee at the
redemption price specified in such Securities for redemption through operation
of the sinking fund and the amount of such sinking fund payment shall be
reduced accordingly.

SECTION 3.06  Redemption of Securities for Sinking Fund.

Not less than 45 days
prior to each sinking fund payment date for any series of Securities, the
Company will deliver to the Trustee an Officers’ Certificate specifying the
amount of the next ensuing sinking fund payment for that series pursuant to the
terms of the series, the portion thereof, if any, that is to be satisfied by
delivering and crediting Securities of that series pursuant to Section 3.05 and
the basis for such credit and will, together with such Officers’ Certificate,
deliver to the Trustee any Securities to be so delivered.  Not less than 30 days before each such
sinking fund payment date the Trustee shall select the Securities to be
redeemed upon such sinking fund payment date in the manner specified in Section
3.02 and cause notice of the

 16
 

redemption thereof
to be given in the name of and at the expense of the Company in the manner
provided in Section 3.02.  Such notice
having been duly given, the redemption of such Securities shall be made upon
the terms and in the manner stated in Section 3.03.

ARTICLE
IV

COVENANTS

SECTION 4.01  Payment of Principal, Premium and Interest.

The Company will duly and
punctually pay or cause to be paid the principal of (and premium, if any) and
interest on the Securities of that series at the time and place and in the
manner provided herein and established with respect to such Securities.

SECTION 4.02  Maintenance of Office or Agency.

So long as any series of
the Securities remain Outstanding, the Company agrees to maintain an office or
agency in New York City or Chicago, Illinois, with respect to each such series
and at such other location or locations as may be designated as provided in
this Section 4.02, where (a) Securities of that series may be presented
for payment, (b) Securities of that series may be presented as herein above
authorized for registration of transfer and exchange, and (c) notices and
demands to or upon the Company in respect of the Securities of that series and
this Indenture may be given or served, such designation to continue with
respect to such office or agency until the Company shall, by written notice
signed by its President or a Executive Vice President and delivered to the
Trustee, designate some other office or agency for such purposes or any of
them.  The Corporate Trust Office of the
Trustee shall initially serve as the office or agency for the aforementioned
purposes.  If at any time the Company
shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address of any change in location thereof, such
presentations, notices and demands may continue to be made or served at the
Corporate Trust Office of the Trustee, and the Company hereby appoints the
Trustee as its agent to receive all such presentations, notices and demands.

SECTION 4.03  Paying Agents.

(a)                                  If
the Company shall appoint one or more paying agents (each a “Paying Agent”) for
all or any series of the Securities, other than the Trustee, the Company will
cause each such Paying Agent to execute and deliver to the Trustee an
instrument in which such agent shall agree with the Trustee, subject to the
provisions of this Section:

(1)                                  that
it will hold all sums held by it as such agent for the payment of the principal
of (and premium, if any) or interest on the Securities of that series (whether
such sums have been paid to it by the Company or by any other obligor of such
Securities) in trust for the benefit of the Persons entitled thereto;

(2)                                  that
it will give the Trustee notice of any failure by the Company (or by any other
obligor of such Securities) to make any payment of the principal of (and
premium, if any) or interest on the Securities of that series when the same
shall be due and payable;

 17
 

(3)                                  that
it will, at any time during the continuance of any failure referred to in the
preceding paragraph (a)(2) above, upon the written request of the Trustee,
forthwith pay to the Trustee all sums so held in trust by such Paying Agent;
and

(4)                                  that
it will perform all other duties of Paying Agent as set forth in this
Indenture.

(b)                                 If
the Company shall act as its own Paying Agent with respect to any series of the
Securities, it will on or before each due date of the principal of (and
premium, if any) or interest on Securities of that series, set aside, segregate
and hold in trust for the benefit of the Persons entitled thereto a sum
sufficient to pay such principal (and premium, if any) or interest so becoming
due on Securities of that series until such sums shall be paid to such Persons
or otherwise disposed of as herein provided and will promptly notify the
Trustee of such action, or any failure (by it or any other obligor on such
Securities) to take such action. 
Whenever the Company shall have one or more Paying Agents for any series
of Securities, it will, prior to each due date of the principal of (and
premium, if any) or interest on any Securities of that series, deposit with the
Paying Agent a sum sufficient to pay the principal (and premium, if any) or
interest so becoming due, such sum to be held in trust for the benefit of the
Persons entitled to such principal, premium or interest, and (unless such
Paying Agent is the Trustee) the Company will promptly notify the Trustee of
this action or failure so to act.

(c)                                  Notwithstanding
anything in this Section to the contrary, (1) the agreement to hold sums in
trust as provided in this Section is subject to the provisions of Section
11.05, and (2) the Company may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, pay, or
direct any Paying Agent to pay, to the Trustee all sums held in trust by the
Company or such Paying Agent, such sums to be held by the Trustee upon the same
terms and conditions as those upon which such sums were held by the Company or
such Paying Agent; and, upon such payment by any Paying Agent to the Trustee,
such Paying Agent shall be released from all further liability with respect to
such money.

(d)                                 The
Company initially appoints the Trustee to act as Paying Agent.

SECTION 4.04  Appointment to Fill Vacancy in Office of
Trustee.

The Company, whenever
necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in
the manner provided in Section 7.10, a Trustee, so that there shall at all
times be a Trustee hereunder.

ARTICLE
V

SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

SECTION 5.01  Company to Furnish Trustee Names and
Addresses of Securityholders.

The Company will furnish
or cause to be furnished to the Trustee (a) on each regular record date (as
defined in Section 2.03) a list, in such form as the Trustee may reasonably
require, of the names and addresses of the holders of each series of Securities
as of such regular record date, provided that the Company shall not be
obligated to furnish or cause to be furnished

 18
 

such list at any
time that the list shall not differ in any respect from the most recent list
furnished to the Trustee by the Company and (b) at such other times as the
Trustee may request in writing within 30 days after the receipt by the Company
of any such request, a list of similar form and content as of a date not more
than 15 days prior to the time such list is furnished; provided, however, that,
in either case, no such list need be furnished for any series for which the
Trustee shall be the Security Registrar.

SECTION 5.02  Preservation Of Information; Communications
With Securityholders.

(a)                                  The
Trustee shall preserve, in as current a form as is reasonably practicable, all
information as to the names and addresses of the holders of Securities
contained in the most recent list furnished to it as provided in Section 5.01
and as to the names and addresses of holders of Securities received by the
Trustee in its capacity as Security Registrar (if acting in such capacity).

(b)                                 The
Trustee may destroy any list furnished to it as provided in Section 5.01 upon
receipt of a new list so furnished.

(c)                                  Securityholders
may communicate as provided in Section 312(b) of the Trust Indenture Act with
other Securityholders with respect to their rights under this Indenture or
under the Securities.  The Company, the
Trustee, the Security Registrar and any other Person shall have the protection
of the Trust Indenture Act Section 312(c).

SECTION 5.03  Reports by the Company.

(a)                                  The
Company covenants and agrees to file with the Trustee, within 15 days after the
Company is required to file the same with the Commission, copies of the annual
reports and of the information, documents and other reports (or copies of such
portions of any of the foregoing as the Commission may from time to time by
rules and regulations prescribe) that the Company may be required to file with
the Commission pursuant to Section 13 or Section 15(d) of the Exchange Act; or,
if the Company is not required to file information, documents or reports
pursuant to either of such sections, then to file with the Trustee and the
Commission, in accordance with the rules and regulations prescribed from time
to time by the Commission, such of the supplementary and periodic information,
documents and reports that may be required pursuant to Section 13 of the
Exchange Act, in respect of a security listed and registered on a national
securities exchange as may be prescribed from time to time in such rules and
regulations.

(b)                                 The
Company covenants and agrees to file with the Trustee and the Commission, in
accordance with the rules and regulations prescribed from to time by the
Commission, such additional information, documents and reports with respect to
compliance by the Company with the conditions and covenants provided for in
this Indenture as may be required from time to time by such rules and
regulations.

(c)                                  The
Company covenants and agrees to transmit by mail, first class postage prepaid,
or reputable overnight delivery service that provides for evidence of receipt,
to the Securityholders, as their names and addresses appear upon the Security
Register, within 30 days after the filing thereof with the Trustee, such
summaries of any information, documents and reports required to

 19
 

be filed by the Company
pursuant to subsections (a) and (b) of this Section as may be required to be
transmitted to the Securityholders by rules and regulations prescribed from
time to time by the Commission.

(d)                                 The
availability of any of the foregoing materials on the Commission’s EDGAR
service shall, to the extent permitted under the Trust Indenture Act, be deemed
to satisfy the Company’s delivery obligations.

SECTION 5.04  Reports by the Trustee.

(a)                                  On
or before May 15 in each year in which any of the Securities are Outstanding
commencing in 2008, the Trustee shall transmit by mail, first class postage
prepaid, to the Securityholders, as their names and addresses appear upon the
Security Register, a brief report pursuant to Section 313(a) of the Trust
Indenture Act if and to the extent required under Section 313(a) of the Trust
Indenture Act.

(b)                                 The
Trustee shall comply with Sections 313(b), 313(c) and 313(d) of the Trust
Indenture Act.

(c)                                  A
copy of each such report shall, at the time of such transmission to
Securityholders, be filed by the Trustee with the Company, with each stock
exchange upon which any Securities are listed (if so listed) and also with the
Commission.  The Company agrees to notify
the Trustee when any Securities become listed on any stock exchange.

(d)                                 If
an Event of Default occurs and is continuing and the Trustee receives actual
notice of such Event of Default, the Trustee shall mail to each Securityholder
notice of the uncured Event of Default within 90 days after the occurrence
thereof.  Except in the case of an Event
of Default in payment of principal of, or interest on, any Securities, or in
the payment of any sinking or purchase fund installment, the Trustee may
withhold the notice if and so long as the board of directors, the executive
committee or a trust committee of directors and/or Responsible Officers of the Trustee
in good faith determine that the withholding of such notice is in the interests
of the Securityholders.

ARTICLE
VI

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

SECTION 6.01  Events of Default.

(a)                                  Whenever
used herein with respect to Securities of a particular series, “Event of
Default” means any one or more of the following events that has occurred and is
continuing:

(1)                                  the
Company defaults in the payment of any installment of interest upon any of the
Securities of that series, as and when the same shall become due and payable
whether or not such payment is prohibited by any subordination terms applicable
to that series of Securities established pursuant to Section 14.01 hereof, and
such default continues for a period of 30 days; provided, however, that a valid
extension of an interest payment period by the Company in

 20
 

accordance with the terms
of any indenture supplemental hereto, shall not constitute a default in the
payment of interest for this purpose;

(2)                                  the
Company defaults in the payment of the principal of (or premium, if any, on)
any of the Securities of that series as and when the same shall become due and
payable whether at maturity, upon redemption, by declaration or otherwise, or
in any payment required by any sinking or analogous fund established with
respect to that series; provided, however, that a valid extension of the
maturity of such Securities in accordance with the terms of any indenture
supplemental hereto shall not constitute a default in the payment of principal
or premium, if any;

(3)                                  the
Company fails to observe or perform any other of its covenants or agreements
with respect to that series contained in this Indenture or otherwise
established with respect to that series of Securities pursuant to Section 2.01
hereof (other than a covenant or agreement that has been expressly included in
this Indenture solely for the benefit of one or more series of Securities other
than such series) for a period of 60 days after the date on which written
notice of such failure, requiring the same to be remedied and stating that such
notice is a “Notice of Default” hereunder, shall have been given to the Company
by the Trustee, by registered or certified mail, or to the Company and the
Trustee by the holders of at least 25% in principal amount of the Securities of
that series at the time Outstanding;

(4)                                  the
Company or any Significant Subsidiary pursuant to or within the meaning of any
Bankruptcy Law (i) commences a voluntary case, (ii) consents to the entry
of an order for relief against it in an involuntary case, (iii) consents to the
appointment of a Custodian of it or for all or substantially all of its
property or (iv) makes a general assignment for the benefit of its creditors;
or

(5)                                  a
court of competent jurisdiction enters an order under any Bankruptcy Law that
(i) is for relief against the Company in an involuntary case, (ii) appoints a
Custodian of the Company or any Significant Subsidiary for all or substantially
all of its property or (iii) orders the liquidation of the Company, and the
order or decree remains unstayed and in effect for 90 days.

(b)                                 In
each and every such case other than an Event of Default specified in Section
6.01(a)(4) or 6.01(a)(5) and except as otherwise provided in Section 6.08,
unless the principal of all the Securities of that series shall have already
become due and payable, either the Trustee or the holders of not less than 25%
in aggregate principal amount of the Securities of that series then Outstanding
hereunder, by notice in writing to the Company (and to the Trustee if given by
such Securityholders), may declare the principal of all the Securities of that
series to be due and payable immediately, and upon any such declaration the
same shall become and shall be immediately due and payable.  In an Event of Default specified in Section
6.01(a)(4) or 6.01(a)(5) the principal of all the outstanding Securities issued
pursuant to this Indenture shall ipso facto become and be immediately due and
payable without any declaration or other act on the part of the Trustee or any
Securityholders.

(c)                                  At
any time after the principal of the Securities of that series shall have been
so declared due and payable, and before any judgment or decree for the payment
of the moneys due shall have been obtained or entered as hereinafter provided,
the holders of a majority in aggregate

 21
 

principal amount of the
Securities of that series then Outstanding hereunder, by written notice to the
Company and the Trustee, may rescind and annul such declaration and its consequences
if:  (1) the Company has paid or
deposited with the Trustee a sum sufficient to pay all matured installments of
interest upon all the Securities of that series and the principal of (and
premium, if any, on) all Securities of that series that shall have become due
otherwise than by acceleration (with interest upon such principal and premium,
if any, and, to the extent that such payment is enforceable under applicable
law, upon overdue installments of interest, at the rate per annum expressed in
the Securities of that series to the date of such payment or deposit) and any
amount payable to the Trustee under Section 7.06, and (2) any and all other
Events of Default under the Indenture with respect to such series, other than
the nonpayment of principal on Securities of that series that shall not have
become due by their terms, shall have been remedied or waived as provided in
Section 6.06; provided that no such waiver shall be permitted in the case of
any failure to pay principal or any interest amounts on any Security when due,
to pay the cash and shares of common stock (if any) owing upon conversion of
any Security (including any additional shares) within the time period required
by this Indenture (if the Securities of that series are convertible); or failure
to comply with any of the provisions of this Indenture that would require the
consent of the affected Securityholder.

No such rescission and
annulment shall extend to or shall affect any subsequent default or impair any
right consequent thereon.

(d)                                 In
case the Trustee shall have proceeded to enforce any right with respect to
Securities of that series under this Indenture and such proceedings shall have
been discontinued or abandoned because of such rescission or annulment or for
any other reason or shall have been determined adversely to the Trustee, then
and in every such case, subject to any determination in such proceedings, the
Company and the Trustee shall be restored respectively to their former
positions and rights hereunder, and all rights, remedies and powers of the
Company and the Trustee shall continue as though no such proceedings had been
taken.

SECTION 6.02  Suits for Enforcement by Trustee.

(a)                                  If
an Event of Default specified in Section 6.01(a)(1) or (2) hereof occurs and is
continuing, the Trustee, in its own name and as trustee of an express trust,
shall be entitled and empowered to institute any action or proceedings at law
or in equity for the collection of the sums so due and unpaid, and may
prosecute any such action or proceeding to judgment or final decree, and may
enforce any such judgment or final decree against the Company or other obligor
upon the Securities of that series and collect the moneys adjudged or decreed
to be payable in the manner provided by law out of the property of the Company
or other obligor upon the Securities of that series, wherever situated.

(b)                                 In
case of any receivership, insolvency, liquidation, bankruptcy, reorganization,
readjustment, arrangement, composition or judicial proceedings affecting the
Company, or its creditors or property, the Trustee shall have power to
intervene in such proceedings and take any action therein that may be permitted
by the court and shall (except as may be otherwise provided by law) be entitled
to file such proofs of claim and other papers and documents as may be necessary
or advisable in order to have the claims of the Trustee and of the holders of
Securities of a series allowed for the entire amount due and payable by the
Company under this Indenture

 22
 

at the date of institution
of such proceedings and for any additional amount that may become due and
payable by the Company after such date, and to collect and receive any moneys
or other property payable or deliverable on any such claim, and to distribute
the same after the deduction of the amount payable to the Trustee under Section
7.06; and any receiver, assignee or trustee in bankruptcy or reorganization is
hereby authorized by each of the holders of Securities of such series to make
such payments to the Trustee, and, in the event that the Trustee shall consent
to the making of such payments directly to such Securityholders, to pay to the
Trustee any amount due it under Section 7.06.

(c)                                  All
rights of action and of asserting claims under this Indenture, or under any of
the terms established with respect to Securities of a series, may be enforced
by the Trustee without the possession of any of such Securities, or the
production thereof at any trial or other proceeding relative thereto, and any
such suit or proceeding instituted by the Trustee shall be brought in its own
name as trustee of an express trust, and any recovery of judgment shall, after
provision for payment to the Trustee of any amounts due under Section 7.06, be
for the ratable benefit of the holders of the Securities of such series.

In case of an Event of
Default hereunder, the Trustee may in its discretion proceed to protect and
enforce the rights vested in it by this Indenture by such appropriate judicial
proceedings as the Trustee shall deem most effectual to protect and enforce any
of such rights, either at law or in equity or in bankruptcy or otherwise,
whether for the specific enforcement of any covenant or agreement contained in
this Indenture or in aid of the exercise of any power granted in this
Indenture, or to enforce any other legal or equitable right vested in the
Trustee by this Indenture or by law.

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

SECTION 6.03  Application of Moneys Collected.

Any moneys collected by
the Trustee pursuant to this Article with respect to a particular series of
Securities shall be applied in the following order, at the date or dates fixed
by the Trustee and, in case of the distribution of such moneys on account of
principal (or premium, if any) or interest, upon presentation of the Securities
of that series, and notation thereon the payment, if only partially paid, and
upon surrender thereof if fully paid:

FIRST:  To the payment of costs and expenses of
collection and of all amounts payable to the Trustee under Section 7.06;

SECOND:  To the payment of all Senior Indebtedness of
the Company if and to the extent required by Article Fourteen; and

THIRD:  To the payment of the amounts then due and
unpaid upon Securities of such series for principal (and premium, if any) and
interest, in respect of which or for the benefit of which such money has been
collected, ratably, without preference or priority of any kind,

 23
 

according to the
amounts due and payable on such Securities for principal (and premium, if any)
and interest, respectively.

SECTION 6.04  Limitation on Suits.

No holder of any Security
of any series shall have any right by virtue or by availing of any provision of
this Indenture to institute any suit, action or proceeding in equity or at law
upon or under or with respect to this Indenture or for the appointment of a
receiver or trustee, or for any other remedy hereunder, unless (a) such holder
previously shall have given to the Trustee written notice of an Event of
Default and of the continuance thereof with respect to the Securities of such
series specifying such Event of Default, as hereinbefore provided; (b) the
holders of not less than 25% in aggregate principal amount of the Securities of
such series then Outstanding shall have made written request upon the Trustee
to institute such action, suit or proceeding in its own name as trustee
hereunder; (c) such holder or holders shall have offered to the Trustee such
reasonable indemnity as it may require against the costs, expenses and
liabilities to be incurred therein or thereby; (d) the Trustee for 60 days
after its receipt of such notice, request and offer of indemnity, shall have
failed to institute any such action, suit or proceeding; and (e) during such
60-day period, the holders of a majority in principal amount of the Securities
of that series shall not have given the Trustee a direction inconsistent with
the request.

Notwithstanding anything
contained herein to the contrary, the right of any holder of any Security to
receive payment of the principal of (and premium, if any) and interest on such
Security, as therein provided, on or after the respective due dates expressed
in such Security (or in the case of redemption, on the redemption date), or to
institute suit for the enforcement of any such payment on or after such
respective dates or redemption date, shall not be impaired or affected without
the consent of such holder.  By accepting
a Security hereunder it is expressly understood, intended and covenanted by the
taker and holder of every Security of such series with every other such taker
and holder and the Trustee, that no one or more holders of Securities of such
series shall have any right in any manner whatsoever by virtue or by availing
of any provision of this Indenture to affect, disturb or prejudice the rights
of the holders of any other of such Securities, or to obtain or seek to obtain
priority over or preference to any other such holder, or to enforce any right
under this Indenture, except in the manner herein provided and for the equal,
ratable and common benefit of all holders of Securities of such series.  For the protection and enforcement of the
provisions of this Section, each and every Securityholder and the Trustee shall
be entitled to such relief as can be given either at law or in equity.

SECTION 6.05  Rights and Remedies Cumulative; Delay or
Omission Not Waiver.

(a)                                  All
powers and remedies given by this Article to the Trustee or to the
Securityholders shall, to the extent permitted by law, be deemed cumulative and
not exclusive of any other powers and remedies available to the Trustee or the
holders of the Securities, by judicial proceedings or otherwise, to enforce the
performance or observance of the covenants and agreements contained in this
Indenture or otherwise established with respect to such Securities.

(b)                                 No
delay or omission of the Trustee or of any holder of any of the Securities to
exercise any right or power accruing upon any Event of Default occurring and
continuing as aforesaid shall impair any such right or power, or shall be
construed to be a waiver of any such default or

 24
 

on acquiescence therein;
and, subject to the provisions of Section 6.04, every power and remedy given by
this Article or by law to the Trustee or the Securityholders may be exercised
from time to time, and as often as shall be deemed expedient, by the Trustee or
by the Securityholders.

SECTION 6.06  Control by Securityholders.

The holders of a majority
in aggregate principal amount of the Securities of any series at the time
Outstanding, determined in accordance with Section 8.01, shall have the right
to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred on
the Trustee with respect to such series; provided, however, that such direction
shall not be in conflict with any rule of law or with this Indenture or be
unduly prejudicial to the rights of holders of Securities of any other series at
the time Outstanding determined in accordance with Section 8.01.  Subject to the provisions of Section 7.01,
the Trustee shall have the right to decline to follow any such direction if the
Trustee in good faith shall, by a Responsible Officer or Officers of the
Trustee, determine that the proceeding so directed would involve the Trustee in
any financial liability including in its individual capacity.  The holders of a majority in aggregate
principal amount of the Securities of any series at the time Outstanding
affected thereby, determined in accordance with Section 8.01, may on behalf of
the holders of all of the Securities of such series waive any past default in
the performance of any of the covenants contained herein or established
pursuant to Section 2.01 with respect to such series and its consequences,
except an uncured default in the payment of the principal of (or premium, if
any) or interest on, any of the Securities of that series as and when the same
shall become due by the terms of such Securities otherwise than by acceleration
(unless such default has been cured and a sum sufficient to pay all matured
installments of interest and principal and any premium has been deposited with
the Trustee (in accordance with Section 6.01(c)).  Upon any such waiver, the default covered
thereby shall be deemed to be cured for all purposes of this Indenture and the
Company, the Trustee and the holders of the Securities of such series shall be
restored to their former positions and rights hereunder, respectively; but no
such waiver shall extend to any subsequent or other default or impair any right
consequent thereon.

SECTION 6.07  Undertaking to Pay Costs.

All parties to this
Indenture agree, and each holder of any Securities by such holder’s acceptance
thereof shall be deemed to have agreed, that any court may in its discretion
require, in any suit for the enforcement of any right or remedy under this
Indenture, or in any suit against the Trustee for any action taken or omitted
by it as Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys’ fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Securityholder, or group of
Securityholders, holding more than 10% in aggregate principal amount of the
Outstanding Securities of any series, or to any suit instituted by any
Securityholder for the enforcement of the payment of the principal of (or
premium, if any) or interest on any Security of such series, on or after the
respective due dates expressed in such Security or established pursuant to this
Indenture.

 25

SECTION
6.08 Sole Remedy for Failure to Report.

(a)           Notwithstanding
any other provision of this Indenture, the sole remedy of Securityholders under
this Indenture for an Event of Default relating to the failure of the Company
to comply with its obligations under Section 5.03 will for the 180 days after
the occurrence of such an Event of Default consist exclusively of the right to
receive additional interest (“Additional Interest”) on the Securities at an
annual rate equal to 0.50% of the aggregate principal amount of the Securities
from and including the 60th day following the occurrence of such Event of
Default.  Any such Additional Interest
will be payable in the same manner and on the same dates as the stated interest
payable on the Securities and all references to interest in this Indenture
shall be deemed to include Additional Interest, if any.  Additional Interest will accrue on all
outstanding Securities from and including the 60th day following the date on
which an Event of Default relating to a failure to comply with Section 5.03
first occurs to, but not including, the 180th day thereafter (or, if
applicable, the earlier date on which the Event of Default relating to a
failure to comply with Section 5.03 shall have been cured or waived).  If such Event of Default is continuing on the
180th day after an Event of Default relating to a failure to comply with
Section 5.03 first occurs, the Securities will be subject to acceleration and
other remedies as provided herein.

(b)           In
the event that the Company is required to pay Additional Interest to
Securityholders, the Company shall provide a direction or order in the form of
a written notice (“Additional Interest Notice”) to the Trustee (and if the
Trustee is not the Paying Agent, the Paying Agent) of the Company’s obligation
to pay Additional Interest no later than ten Business Days prior to the
proposed payment date set for the payment of Additional Interest, and the
Additional Interest Notice shall set forth the amount of Additional Interest to
be paid by the Company on such payment date and direct the Trustee (or, if the
Trustee is not the Paying Agent, the Paying Agent) to make payment to the
extent it receives funds from the Company to do so.  The Trustee shall not at any time be under
any duty or responsibility to any holder of Securities to determine whether
Additional Interest is payable, or with respect to the nature, extent, or
calculation of the amount of Additional Interest owed, or with respect to the
method employed in such calculation of Additional Interest.

ARTICLE VII

CONCERNING THE TRUSTEE

SECTION
7.01  Certain Duties and Responsibilities
of Trustee.

(a)           The
Trustee, prior to the occurrence of an Event of Default with respect to the
Securities of a series and after the curing of all Events of Default with
respect to the Securities of that series that may have occurred, shall
undertake to perform with respect to the Securities of such series such duties
and only such duties as are specifically set forth in this Indenture, and no
implied covenants shall be read into this Indenture against the Trustee.  In case an Event of Default with respect to
the Securities of a series has occurred (that has not been cured or waived),
the Trustee shall exercise with respect to Securities of that series such of the
rights and powers vested in it by this Indenture, and use the same degree of
care and skill in their exercise, as a prudent person would exercise or use
under the circumstances in the conduct of his own affairs.

 26
 

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

(1)           prior to the occurrence
of an Event of Default with respect to the Securities of a series and after the
curing or waiving of all such Events of Default with respect to that series
that may have occurred:

(i)            the duties and
obligations of the Trustee shall with respect to the Securities of such series
be determined solely by the express provisions of this Indenture, and the
Trustee shall not be liable with respect to the Securities of such series
except for the performance of such duties and obligations as are specifically
set forth in this Indenture, and no implied covenants or obligations shall be
read into this Indenture against the Trustee; and

(ii)           in the absence of bad
faith on the part of the Trustee, the Trustee may with respect to the
Securities of such series conclusively rely, as to the truth of the statements
and the correctness of the opinions expressed therein, upon any certificates or
opinions furnished to the Trustee and conforming to the requirements of this
Indenture; but in the case of any such certificates or opinions that by any
provision hereof are specifically required to be furnished to the Trustee, the
Trustee shall be under a duty to examine the same to determine whether or not
they conform on their face to the requirements of this Indenture;

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

(3)           the Trustee shall not
be liable with respect to any action taken or omitted to be taken by it in good
faith in accordance with the direction of the holders of not less than a
majority in principal amount of the Securities of any series at the time
Outstanding relating to the time, method and place of conducting any proceeding
for any remedy available to the Trustee, or exercising any trust or power
conferred upon the Trustee under this Indenture with respect to the Securities
of that series; and

(4)           none of the provisions
contained in this Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur financial liability including in its individual
capacity in the performance of any of its duties or in the exercise of any of
its rights or powers, if there is reasonable ground for believing that the repayment
of such funds or liability is not reasonably assured to it as determined in its
sole discretion under the terms of this Indenture or adequate indemnity against
such risk is not reasonably assured to it as determined in its sole discretion.

SECTION
7.02  Certain Rights of Trustee.

Except as otherwise
provided in Section 7.01:

(a)           The
Trustee may rely and shall be protected in acting or refraining from acting
upon any resolution, certificate, statement, instrument, opinion, report,
notice, request, consent, order, 

 27
 

approval, bond, security or other paper or document
believed by it to be genuine and to have been signed or presented by the proper
party or parties;

(b)           Any
request, direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by a Board Resolution or an instrument signed in the
name of the Company, by the President or any Executive Vice President and by
the Secretary or an Assistant Secretary or the Treasurer or an Assistant
Treasurer thereof (unless other evidence in respect thereof is specifically
prescribed herein);

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

(d)           The
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request, order or direction of any of the
Securityholders, pursuant to the provisions of this Indenture, unless such
Securityholders shall have offered to the Trustee reasonable security or
indemnity satisfactory to it against the costs, expenses and liabilities that
may be incurred therein or thereby; nothing contained herein shall, however,
relieve the Trustee of the obligation, upon the occurrence of an Event of
Default with respect to a series of the Securities (that has not been cured or
waived) to exercise with respect to Securities of that series such of the
rights and powers vested in it by this Indenture, and to use the same degree of
care and skill in their exercise, as a prudent person would exercise or use
under the circumstances in the conduct of his own affairs;

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

(f)            The
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, consent, order, approval, bond, security or other papers or
documents, unless requested in writing so to do by the holders of not less than
a majority in principal amount of the Outstanding Securities of the particular
series affected thereby (determined as provided in Section 8.04); provided,
however, that if the payment within a reasonable time to the Trustee of the
costs, expenses or liabilities likely to be incurred by it in the making of
such investigation is, in the opinion of the Trustee, not reasonably assured to
the Trustee by the security afforded to it by the terms of this Indenture, the
Trustee may require reasonable indemnity against such costs, expenses or liabilities
as a condition to so proceeding.  The
reasonable expense of every such examination shall be paid by the Company or,
if paid by the Trustee, shall be repaid by the Company upon demand; and

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

 28
 

SECTION
7.03  Trustee Not Responsible for
Recitals or Issuance or Securities.

(a)           The
recitals contained herein and in the Securities shall be taken as the
statements of the Company, and the Trustee assumes no responsibility for the
correctness of the same.

(b)           The
Trustee makes no representations as to the validity or sufficiency of this
Indenture or of the Securities.

(c)           The
Trustee shall not be accountable for the use or application by the Company of
any of the Securities or of the proceeds of such Securities, or for the use or
application of any moneys paid over by the Trustee in accordance with any
provision of this Indenture or established pursuant to Section 2.01, or for the
use or application of any moneys received by any Paying Agent other than the
Trustee.

SECTION
7.04  May Hold Securities.

The Trustee or any Paying Agent or Security Registrar,
in its individual or any other capacity, may become the owner or pledgee of
Securities with the same rights it would have if it were not Trustee, Paying
Agent or Security Registrar.

SECTION
7.05  Moneys Held in Trust.

Subject to the provisions of Section 11.05, all moneys
received by the Trustee shall, until used or applied as herein provided, be
held in trust for the purposes for which they were received, but need not be
segregated from other funds except to the extent required by law.  The Trustee shall be under no liability for
interest on any moneys received by it hereunder except such as it may agree
with the Company to pay thereon.

SECTION
7.06  Compensation and Reimbursement.

(a)           The
Company covenants and agrees to pay to the Trustee, and the Trustee shall be
entitled to, such reasonable compensation (which shall not be limited by any
provision of law in regard to the compensation of a trustee of an express trust),
as the Company and the Trustee may from time to time agree in writing, for all
services rendered by it in the execution of the trusts hereby created and in
the exercise and performance of any of the powers and duties hereunder of the
Trustee, and, except as otherwise expressly provided herein, the Company will
pay or reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Trustee in accordance with
any of the provisions of this Indenture (including the reasonable compensation
and the expenses and disbursements of its counsel and of all Persons not
regularly in its employ) except any such expense, disbursement or advance as
may arise from its negligence or bad faith. 
The Company also covenants to indemnify the Trustee (and its officers,
agents, directors and employees) for, and to hold it harmless against, any
loss, liability or expense incurred without negligence or bad faith on the part
of the Trustee and arising out of or in connection with the acceptance or
administration of this trust, including the costs and expenses of defending
itself against any claim of liability in the premises.

(b)           The
obligations of the Company under this Section to compensate and indemnify the
Trustee and to pay or reimburse the Trustee for expenses, disbursements and
advances shall 

 29
 

constitute additional indebtedness hereunder.  Such additional indebtedness shall be secured
by a lien prior to that of the Securities upon all property and funds held or
collected by the Trustee as such, except funds held in trust for the benefit of
the holders of particular Securities.

The provisions of this Section 7.06 shall survive the
satisfaction and discharge of this Indenture or the removal or resignation of
the Trustee and shall apply to the Trustee in any other capacity in which it
may act as required by this Indenture or any supplement hereto.

SECTION
7.07  Reliance on Officers’ Certificate.

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

SECTION
7.08  Disqualification; Conflicting
Interests.

If the Trustee has or shall acquire any “conflicting
interest” within the meaning of Section 310(b) of the Trust Indenture Act, the
Trustee and the Company shall in all respects comply with the provisions of
Section 310(b) of the Trust Indenture Act.

SECTION
7.09  Corporate Trustee Required;
Eligibility.

There shall at all times be a Trustee with respect to
the Securities issued hereunder which shall at all times be a corporation
organized and doing business under the laws of the United States of America or
any State or Territory thereof or of the District of Columbia, or a corporation
or other Person permitted to act as trustee by the Commission, authorized under
such laws to exercise corporate trust powers, having a combined capital and
surplus of at least 50 million U.S. dollars ($50,000,000), and subject to
supervision or examination by Federal, State, Territorial or District of
Columbia authority.  If such corporation
publishes reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the
purposes of this Section, the combined capital and surplus of such corporation
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. 
The Company may not, nor may any Person directly or indirectly
controlling, controlled by or under common control with the Company, serve as
Trustee.  In case at any time the Trustee
shall cease to be eligible in accordance with the provisions of this Section,
the Trustee shall resign immediately in the manner and with the effect
specified in Section 7.10.

SECTION
7.10  Resignation and Removal;
Appointment of Successor.

(a)           The
Trustee or any successor hereafter appointed, may at any time resign with
respect to the Securities of one or more series by giving written notice
thereof to the Company and by 

 30
 

transmitting notice of resignation by mail, first
class postage prepaid, to the Securityholders of such series, as their names
and addresses appear upon the Security Register.  Upon receiving such notice of resignation,
the Company shall promptly appoint a successor trustee with respect to
Securities of such series by written instrument, in duplicate, executed by
order of the Board of Directors, one copy of which instrument shall be
delivered to the resigning Trustee and one copy to the successor trustee.  If no successor trustee shall have been so
appointed and have accepted appointment within 30 days after the mailing of
such notice of resignation, the resigning Trustee may petition any court of
competent jurisdiction for the appointment of a successor trustee with respect
to Securities of such series, or any Securityholder of that series who has been
a bona fide holder of a Security or Securities for at least six months may on
behalf of himself and all others similarly situated, petition any such court
for the appointment of a successor trustee. 
Such court may thereupon after such notice, if any, as it may deem
proper and prescribe, appoint a successor trustee.

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

(1)           the Trustee shall fail
to comply with the provisions of Section 7.08 after written request therefor by
the Company or by any Securityholder who has been a bona fide holder of a Security
or Securities for at least six months; or

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

(3)           the Trustee shall
become incapable of acting, or shall be adjudged a bankrupt or insolvent, or
commence a voluntary bankruptcy proceeding, or a receiver of the Trustee or of
its property shall be appointed or consented to, or any public officer shall
take charge or control of the Trustee or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation,

then, in any such case, the Company may remove the
Trustee with respect to all Securities and appoint a successor trustee by
written instrument, in duplicate, executed by order of the Board of Directors,
one copy of which instrument shall be delivered to the Trustee so removed and
one copy to the successor trustee, or, unless the Trustee’s duty to resign is
stayed as provided herein, any Securityholder who has been a bona fide holder
of a Security or Securities for at least six months may, on behalf of that
holder and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor
trustee.  Such court may thereupon after
such notice, if any, as it may deem proper and prescribe, remove the Trustee
and appoint a successor trustee.

(c)           The
holders of a majority in aggregate principal amount of the Securities of any
series at the time Outstanding may at any time remove the Trustee with respect
to such series by so notifying the Trustee and the Company and may appoint a
successor Trustee for such series with the consent of the Company.

 31
 

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

(e)           Any
successor trustee appointed pursuant to this Section may be appointed with
respect to the Securities of one or more series or all of such series, and at
any time there shall be only one Trustee with respect to the Securities of any
particular series.

SECTION
7.11  Acceptance of Appointment By
Successor.

(a)           In
case of the appointment hereunder of a successor trustee with respect to all
Securities, every such successor trustee so appointed shall execute,
acknowledge and deliver to the Company and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal
of the retiring Trustee shall become effective and such successor trustee,
without any further act, deed or conveyance, shall become vested with all the rights,
powers, trusts and duties of the retiring Trustee; but, on the request of the
Company or the successor trustee, such retiring Trustee shall, upon payment of
its charges, execute and deliver an instrument transferring to such successor
trustee all the rights, powers and trusts of the retiring Trustee and shall
duly assign, transfer and deliver to such successor trustee all property and
money held by such retiring Trustee hereunder.

(b)           In
case of the appointment hereunder of a successor trustee with respect to the
Securities of one or more (but not all) series, the Company, the retiring
Trustee and each successor trustee with respect to the Securities of one or
more series shall execute and deliver an indenture supplemental hereto wherein
each successor trustee shall accept such appointment and which (1) shall
contain such provisions as shall be necessary or desirable to transfer and
confirm to, and to vest in, each successor trustee all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of
that or those series to which the appointment of such successor trustee
relates, (2) shall contain such provisions as shall be deemed necessary or
desirable to confirm that all the rights, powers, trusts and duties of the retiring
Trustee with respect to the Securities of that or those series as to which the
retiring Trustee is not retiring shall continue to be vested in the retiring
Trustee, and (3) shall add to or change any of the provisions of this Indenture
as shall be necessary to provide for or facilitate the administration of the
trusts hereunder by more than one Trustee, it being understood that nothing
herein or in such supplemental indenture shall constitute such Trustees
co-trustees of the same trust, that each such Trustee shall be trustee of a
trust or trusts hereunder separate and apart from any trust or trusts hereunder
administered by any other such Trustee and that no Trustee shall be responsible
for any act or failure to act on the part of any other Trustee hereunder; and
upon the execution and delivery of such supplemental indenture the resignation
or removal of the retiring Trustee shall become effective to the extent
provided therein, such retiring Trustee shall with respect to the Securities of
that or those series to which the appointment of such successor trustee relates
have no further responsibility for the exercise of rights and powers or for the
performance of the duties and obligations vested in the Trustee under this
Indenture, and each such successor trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee with respect to the Securities of that or those series
to which the appointment of such successor trustee relates; but, on request of
the Company or any successor trustee, such retiring Trustee shall duly assign,
transfer and deliver to such successor trustee, to the extent 

 32
 

contemplated by such supplemental indenture, the
property and money held by such retiring Trustee hereunder with respect to the
Securities of that or those series to which the appointment of such successor
trustee relates.

(c)           Upon
request of any such successor trustee, the Company shall execute any and all
instruments for more fully and certainly vesting in and confirming to such
successor trustee all such rights, powers and trusts referred to in paragraph
(a) or (b) of this Section, as the case may be.

(d)           No
successor trustee shall accept its appointment unless at the time of such
acceptance such successor trustee shall be qualified and eligible under this
Article.

(e)           Upon
acceptance of appointment by a successor trustee as provided in this Section,
the Company shall transmit notice of the succession of such trustee hereunder
by mail, first class postage prepaid, to the Securityholders, as their names
and addresses appear upon the Security Register.  If the Company fails to transmit such notice
within ten days after acceptance of appointment by the successor trustee, the
successor trustee shall cause such notice to be transmitted at the expense of
the Company.

SECTION
7.12  Merger, Conversion, Consolidation
or Succession to Business.

Any corporation into which the Trustee may be merged
or converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Trustee shall be a
party, or any corporation succeeding to the corporate trust business of the
Trustee, shall be the successor of the Trustee hereunder, provided that such corporation
shall be qualified under the provisions of Section 7.08 and eligible under the
provisions of Section 7.09, without the execution or filing of any paper or any
further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding.  In case any
Securities shall have been authenticated, but not delivered, by the Trustee
then in office, any successor by merger, conversion or consolidation to such
authenticating Trustee may adopt such authentication and deliver the Securities
so authenticated with the same effect as if such successor Trustee had itself
authenticated such Securities.

SECTION
7.13  Preferential Collection of Claims
Against the Company.

The Trustee shall comply with Section 311(a) of the
Trust Indenture Act, excluding any creditor relationship described in Section
311(b) of the Trust Indenture Act.  A
Trustee who has resigned or been removed shall be subject to Section 311(a) of
the Trust Indenture Act to the extent included therein.

ARTICLE VIII

CONCERNING THE SECURITYHOLDERS

SECTION
8.01  Evidence of Action by
Securityholders.

Whenever in this Indenture it is provided that the
holders of a majority or specified percentage in aggregate principal amount of
the Securities of a particular series may take any 

 33
 

action (including the
making of any demand or request, the giving of any notice, consent or waiver or
the taking of any other action), the fact that at the time of taking any such
action the holders of such majority or specified percentage of that series have
joined therein may be evidenced by any instrument or any number of instruments
of similar tenor executed by such holders of Securities of that series in
Person or by agent or proxy appointed in writing.

If the Company shall solicit from the Securityholders
of any series any request, demand, authorization, direction, notice, consent,
waiver or other action, the Company may, at its option, as evidenced by an
Officers’ Certificate, fix in advance a record date for such series for the
determination of Securityholders entitled to give such request, demand,
authorization, direction, notice, consent, waiver or other action, but the
Company shall have no obligation to do so. 
If such a record date is fixed, such request, demand, authorization,
direction, notice, consent, waiver or other action may be given before or after
the record date, but only the Securityholders of record at the close of
business on the record date shall be deemed to be Securityholders for the
purposes of determining whether Securityholders of the requisite proportion of
Outstanding Securities of that series have authorized or agreed or consented to
such request, demand, authorization, direction, notice, consent, waiver or
other action, and for that purpose the Outstanding Securities of that series
shall be computed as of the record date; provided, however, that no such
authorization, agreement or consent by such Securityholders on the record date
shall be deemed effective unless it shall become effective pursuant to the
provisions of this Indenture not later than six months after the record date.

SECTION
8.02  Proof of Execution by
Securityholders.

Subject to the provisions of Section 7.01, proof of
the execution of any instrument by a Securityholder (such proof will not
require notarization) or his agent or proxy and proof of the holding by any
Person of any of the Securities shall be sufficient if made in the following
manner:

(a)           The
fact and date of the execution by any such Person of any instrument may be
proved in any reasonable manner acceptable to the Trustee.

(b)           The
ownership of Securities shall be proved by the Security Register of such
Securities or by a certificate of the Security Registrar thereof.

(c)           The
Trustee may require such additional proof of any matter referred to in this Section
as it shall deem necessary.

SECTION
8.03  Who May be Deemed Owners.

Prior to the due presentment for registration of
transfer of any Security, the Company, the Trustee, any Paying Agent and any
Security Registrar may deem and treat the Person in whose name such Security
shall be registered upon the books of the Company as the absolute owner of such
Security (whether or not such Security shall be overdue and notwithstanding any
notice of ownership or writing thereon made by anyone other than the Security
Registrar) for the purpose of receiving payment of or on account of the
principal of (and premium, if any) and (subject to Section 2.03) interest on
such Security and for all other purposes; and neither the Company nor 

 34
 

the Trustee nor any
Paying Agent nor any Security Registrar shall be affected by any notice to the
contrary.

SECTION
8.04  Certain Securities Owned by Company
Disregarded.

In determining whether the holders of the requisite
aggregate principal amount of Securities of a particular series have concurred
in any direction, consent or waiver under this Indenture, the Securities of
that series that are owned by the Company or any other obligor on the
Securities of that series or by any Person directly or indirectly controlling
or controlled by or under common control with the Company or any other obligor
on the Securities of that series shall be disregarded and deemed not to be
Outstanding for the purpose of any such determination, except that for the
purpose of determining whether the Trustee shall be protected in relying on any
such direction, consent or waiver, only Securities of such series that the
Trustee actually knows are so owned shall be so disregarded.  The Securities so owned that have been pledged
in good faith may be regarded as Outstanding for the purposes of this Section,
if the pledgee shall establish to the satisfaction of the Trustee the pledgee’s
right so to act with respect to such Securities and that the pledgee is not a
Person directly or indirectly controlling or controlled by or under direct or
indirect common control with the Company or any such other obligor.  In case of a dispute as to such right, any
decision by the Trustee taken upon the advice of counsel shall be full
protection to the Trustee.

SECTION
8.05  Actions Binding on Future
Securityholders.

At any time prior to (but not after) the evidencing to
the Trustee, as provided in Section 8.01, of the taking of any action by the
holders of the majority or percentage in aggregate principal amount of the
Securities of a particular series specified in this Indenture in connection
with such action, any holder of a Security of that series that is shown by the
evidence to be included in the Securities the holders of which have consented
to such action may, by filing written notice with the Trustee, and upon proof
of holding as provided in Section 8.02, revoke such action so far as concerns
such Security.  Except as aforesaid any
such action taken by the holder of any Security shall be conclusive and binding
upon such holder and upon all future holders and owners of such Security, and
of any Security issued in exchange therefor, on registration of transfer
thereof or in place thereof, irrespective of whether or not any notation in
regard thereto is made upon such Security. 
Any action taken by the holders of the majority or percentage in
aggregate principal amount of the Securities of a particular series specified
in this Indenture in connection with such action shall be conclusively binding
upon the Company, the Trustee and the holders of all the Securities of that
series.

ARTICLE IX

SUPPLEMENTAL INDENTURES

SECTION
9.01  Supplemental Indentures Without the
Consent of Securityholders.

In addition to any supplemental indenture otherwise
authorized by this Indenture, the Company and the Trustee may from time to time
and at any time enter into an indenture or indentures supplemental hereto
(which shall conform to the provisions of the Trust Indenture Act 

 35
 

as then in effect),
without the consent of the Securityholders, for one or more of the following
purposes:

(a)           to
cure any ambiguity, defect or inconsistency herein or in the Securities of any
series;

(b)           to
comply with Article Ten;

(c)           to
provide for uncertificated Securities in addition to or in place of
certificated Securities;

(d)           to
add to the covenants of the Company for the benefit of the holders of all or
any series of Securities (and if such covenants are to be for the benefit of
less than all series of Securities, stating that such covenants are expressly
being included solely for the benefit of such series) or to surrender any right
or power herein conferred upon the Company;

(e)           to
add to, delete from or revise the conditions, limitations and restrictions on
the authorized amount, terms, purposes of issue, authentication and delivery of
Securities of any series that has not yet been issued hereunder;

(f)            to
make any change that does not adversely affect the rights of any Securityholder
of Securities of the series such supplemental indenture pertains to; or

(g)           to
provide for the issuance of and establish the form and terms and conditions of
the Securities of any series as provided in Section 2.01, to establish the form
of any certifications required to be furnished pursuant to the terms of this
Indenture or any series of Securities, or to add to the rights of the holders
of any series of Securities.

Any amendment or supplemental indenture entered into
to cure any ambiguity or correct any defective or inconsistent provision
contained in the Indenture or any Securities that is made solely to conform the
provisions of the Indenture and such Securities to the description of the
Indenture and such Securities contained in the prospectus relating to such
Securities upon their initial issuance shall be deemed not to adversely affect
the rights of any Securityholder.

The Trustee is hereby authorized to join with the
Company in the execution of any such supplemental indenture, and to make any
further appropriate agreements and stipulations that may be therein contained,
but the Trustee shall not be obligated to enter into any such supplemental
indenture that affects the Trustee’s own rights, duties or immunities under
this Indenture or otherwise.

Any supplemental indenture authorized by the
provisions of this Section may be executed by the Company and the Trustee
without the consent of the holders of any of the Securities at the time
Outstanding, notwithstanding any of the provisions of Section 9.02.

SECTION
9.02  Supplemental Indentures With
Consent of Securityholders.

With the consent (evidenced as provided in Section
8.01) of the holders of not less than a majority in aggregate principal amount
of the Securities of each series affected by such supplemental indenture or
indentures at the time Outstanding, voting separately as a series, the Company,
when authorized by Board Resolutions, and the Trustee may from time to time and
at 

 36
 

any time enter into an
indenture or indentures supplemental hereto (which shall conform to the
provisions of the Trust Indenture Act as then in effect) for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of any supplemental indenture or of modifying
in any manner not covered by Section 9.01 the rights of the holders of the
Securities of such series under this Indenture; provided, however, that no such
supplemental indenture shall, without the consent of the holders of each
Security then Outstanding and affected thereby:

(a)           change
the stated maturity of the principal of, or the date any installment of
interest is due on, any Security;

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

(c)           reduce
the amount of principal payable upon acceleration of the maturity of any
Security;

(d)           change
the currency of payment of principal of, or interest on, any Security;

(e)           impair
the right to institute suit for the enforcement of any payment on, or with
respect to, any Security;

(f)            modify
any provision providing for the repurchase of Securities of any series at the
option of the holders thereof created by any supplemental indenture hereto in a
manner adverse to such Securityholders;

(g)           adversely
affect the right of holders of Securities of any series to convert such
Securities (if conversion rights are provided for in respect of such series by
any supplemental indenture hereto);

(h)           reduce
the percentage of the aggregate principal amount of the outstanding Securities
whose holders must consent to a modification or amendment;

(i)            subsequent
to the initial issuance of Securities of any series, modify any subordination
terms applicable to that series of Securities established pursuant to Section
14.01 hereof in a manner adverse to the holders of Securities of that series;

(j)            reduce
the percentage of the aggregate principal amount of the outstanding Securities
required under Sections 6.01 and 6.06 hereof; or

(k)           modify
any of the provisions of this Section or Section 6.01, except to
increase any such percentage or to provide that certain provisions of this
Indenture cannot be modified or waived without the consent of the
Securityholder of each outstanding Security affected thereby.

It shall not be necessary for the consent of the
holders of the Securities of any series affected thereby under this Section to
approve the particular form of any proposed supplemental indenture, but it
shall be sufficient if such consent shall approve the substance thereof.

 37
 

SECTION
9.03  Effect of Supplemental Indentures.

Upon the execution of any supplemental indenture
pursuant to the provisions of this Article or of Section 10.01, this Indenture
shall, with respect to such series, be and be deemed to be modified and amended
in accordance therewith and the respective rights, limitations of rights,
obligations, duties and immunities under this Indenture of the Trustee, the
Company and the holders of Securities of the series affected thereby shall
thereafter be determined, exercised and enforced hereunder subject in all
respects to such modifications and amendments, and all the terms and conditions
of any such supplemental indenture shall be and be deemed to be part of the
terms and conditions of this Indenture for any and all purposes.

SECTION
9.04  Securities Affected by Supplemental
Indentures.

Securities of any series affected by a supplemental
indenture, authenticated and delivered after the execution of such supplemental
indenture pursuant to the provisions of this Article or of Section 10.01, may
bear a notation in form approved by the Company, provided such form meets the
requirements of any exchange upon which such series may be listed, as to any
matter provided for in such supplemental indenture.  If the Company shall so determine, new
Securities of that series so modified as to conform, in the opinion of the
Board of Directors, to any modification of this Indenture contained in any such
supplemental indenture may be prepared by the Company, authenticated by the
Trustee and delivered in exchange for the Securities of that series then
Outstanding.

SECTION
9.05  Execution of Supplemental
Indentures.

Upon the request of the Company, accompanied by Board
Resolutions authorizing the execution of any such supplemental indenture, and
upon the filing with the Trustee of evidence of the consent of Securityholders
required to consent thereto as aforesaid, the Trustee shall join with the
Company in the execution of such supplemental indenture unless such
supplemental indenture affects the Trustee’s own rights, duties or immunities
under this Indenture or otherwise, in which case the Trustee may in its
discretion but shall not be obligated to enter into such supplemental
indenture.  The Trustee, subject to the
provisions of Section 7.01, may receive an Opinion of Counsel at no cost to the
Trustee as conclusive evidence that any supplemental indenture executed
pursuant to this Article is authorized or permitted by, and conforms to, the
terms of this Article and that it is proper for the Trustee under the
provisions of this Article to join in the execution thereof; provided, however,
that such Opinion of Counsel need not be provided in connection with the
execution of a supplemental indenture that establishes the terms of a series of
Securities pursuant to Section 2.01 hereof.

Promptly after the execution by the Company and the
Trustee of any supplemental indenture pursuant to the provisions of this
Section, the Trustee shall transmit by mail, first class postage prepaid, a
notice, setting forth in general terms the substance of such supplemental
indenture, to the Securityholders of all series affected thereby as their names
and addresses appear upon the Security Register.  Any failure of the Trustee to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture.

 38

ARTICLE X

SUCCESSOR ENTITY

SECTION
10.01  Company May Consolidate, Etc.

Nothing contained in this Indenture or in any of the
Securities shall prevent any consolidation or merger of the Company with or
into any other Person (whether or not affiliated with the Company) or
successive consolidations or mergers in which the Company or its successor or
successors shall be a party or parties, or shall prevent any sale, conveyance,
transfer or other disposition of the property of the Company or its successor
or successors as an entirety, or substantially as an entirety, to any other
corporation (whether or not affiliated with the Company or its successor or
successors) authorized to acquire and operate the same; provided, however, the
Company hereby covenants and agrees that, upon any such consolidation or merger
(in each case, if the Company is not the survivor of such transaction), sale,
conveyance, transfer or other disposition, the due and punctual payment of the
principal of (premium, if any) and interest on all of the Securities of all
series in accordance with the terms of each series, according to their tenor,
and the due and punctual performance and observance of all the covenants and
conditions of this Indenture with respect to each series or established with
respect to such series pursuant to Section 2.01 to be kept or performed by the
Company shall be expressly assumed, by supplemental indenture (which shall
conform to the provisions of the Trust Indenture Act as then in effect)
satisfactory in form to the Trustee executed and delivered to the Trustee by
the entity formed by such consolidation, or into which the Company shall have
been merged, or by the entity which shall have acquired such property.

SECTION
10.02  Successor Entity Substituted.

(a)           In
case of any such consolidation, merger, sale, conveyance, transfer or other
disposition and upon the assumption by the successor entity by supplemental
indenture, executed and delivered to the Trustee and satisfactory in form to
the Trustee, of the due and punctual payment of the principal of (and premium,
if any) and interest on all of the Securities of all series Outstanding and the
due and punctual performance of all of the covenants and conditions of this
Indenture or established with respect to each series of the Securities pursuant
to Section 2.01 to be performed by the Company with respect to each series,
such successor entity shall succeed to and be substituted for the Company with
the same effect as if it had been named as the Company herein, and thereupon
the predecessor corporation shall be relieved of all obligations and covenants
under this Indenture and the Securities.

(b)           In
case of any such consolidation, merger, sale, conveyance, transfer or other
disposition, such changes in phraseology and form (but not in substance) may be
made in the Securities thereafter to be issued as may be appropriate.

(c)           Nothing
contained in this Article shall apply to limit or impose any requirements upon
the consolidation or merger of any Person into the Company where the Company is
the survivor of such transaction, or the acquisition by the Company, by
purchase or otherwise, of all or any part of the property of any other Person
(whether or not affiliated with the Company).

 39
 

SECTION
10.03  Evidence of Consolidation, Etc. to
Trustee.

The Trustee, subject to the provisions of Section
7.01, may receive an Opinion of Counsel as conclusive evidence that any such
consolidation, merger, sale, conveyance, transfer or other disposition, and any
such assumption, comply with the provisions of this Article.

ARTICLE XI

SATISFACTION AND DISCHARGE

SECTION
11.01  Satisfaction and Discharge of
Indenture.

If at any time: 
(a) the Company shall have delivered to the Trustee for cancellation all
Securities of a series theretofore authenticated (other than any Securities
that have been destroyed, lost or stolen and that have been replaced or paid as
provided in Section 2.07) and Securities for whose payment money or
Governmental Obligations have theretofore been deposited in trust or segregated
and held in trust by the Company; or (b) all such Securities of a particular
series not theretofore delivered to the Trustee for cancellation shall have
become due and payable, or are by their terms to become due and payable within
one year or are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption, and the
Company shall deposit or cause to be deposited with the Trustee as trust funds
the entire amount in moneys or Governmental Obligations or a combination
thereof, sufficient in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay at maturity or upon redemption all Securities of
that series not theretofore delivered to the Trustee for cancellation,
including principal (and premium, if any) and interest due or to become due to
such date of maturity or date fixed for redemption, as the case may be, and if
the Company shall also pay or cause to be paid all other sums payable hereunder
with respect to such series by the Company then this Indenture shall thereupon
cease to be of further effect with respect to such series except for the
provisions of Sections 2.03, 2.05, 2.07, 4.01, 4.02, 4.03 and 7.10 and any
provisions established in any supplemental indenture hereto providing for the
conversion of such Securities, all of which shall survive until the date of
maturity or redemption date, as the case may be, and Sections 7.06 and 11.05,
that shall survive to such date and thereafter, and the Trustee, on demand of
the Company and at the cost and expense of the Company, shall execute proper
instruments acknowledging satisfaction of and discharging this Indenture with
respect to such series.

SECTION
11.02  Discharge of Obligations.

If at any time all such Securities of a particular
series not heretofore delivered to the Trustee for cancellation or that have
not become due and payable as described in Section 11.01 (a) or (b) shall have
been paid by the Company by depositing irrevocably with the Trustee as trust
funds moneys or an amount of Governmental Obligations sufficient to pay at
maturity or upon redemption all such Securities of that series not theretofore
delivered to the Trustee for cancellation, including principal (and premium, if
any) and interest due or to become due to such date of maturity or date fixed
for redemption, as the case may be, and if the Company shall also pay or cause
to be paid all other sums payable hereunder by the Company with respect to such

 40
 

series, then after the
date such moneys or Governmental Obligations, as the case may be, are deposited
with the Trustee, the obligations of the Company under this Indenture with
respect to such series shall cease to be of further effect except for the
provisions of Sections 2.03, 2.05, 2.07, 4.01, 4.02, 4.03, 7.06, 7.10 and 11.05
hereof and any provisions established in any supplemental indenture hereto
providing for the conversion of such Securities, all of which shall survive
until such Securities shall mature and be paid. 
Thereafter, Sections 7.06 and 11.05 shall survive.

SECTION
11.03  Deposited Moneys to be Held in
Trust.

All moneys or Governmental Obligations deposited with
the Trustee pursuant to Sections 11.01 or 11.02 shall be held in trust and
shall be available for payment as due, either directly or through any Paying
Agent (including the Company acting as its own Paying Agent), to the holders of
the particular series of Securities for the payment or redemption of which such
moneys or Governmental Obligations have been deposited with the Trustee.

SECTION
11.04  Payment of Moneys Held by Paying
Agents.

In connection with the satisfaction and discharge of
this Indenture all moneys or Governmental Obligations then held by any Paying
Agent under the provisions of this Indenture shall, upon demand of the Company,
be paid to the Trustee and thereupon such Paying Agent shall be released from
all further liability with respect to such moneys or Governmental Obligations.

SECTION
11.05  Repayment to Company.

Any moneys or Governmental Obligations deposited with
any Paying Agent or the Trustee, or then held by the Company, in trust for
payment of principal of (and premium, if any) or interest on the Securities of
a particular series that are not applied but remain unclaimed by the holders of
such Securities for at least two years after the date upon which the principal
of (and premium, if any) or interest on such Securities shall have respectively
become due and payable, shall be repaid to the Company or (if then held by the
Company) shall be discharged from such trust; and thereupon the Paying Agent
and the Trustee shall be released from all further liability with respect to
such moneys or Governmental Obligations, and the holder of any of the
Securities entitled to receive such payment shall thereafter, as an unsecured
general creditor, look only to the Company for the payment thereof.

ARTICLE XII

IMMUNITY
OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND 

DIRECTORS

SECTION
12.01  No Recourse.

No recourse under or upon any obligation, covenant or
agreement of this Indenture, or of any Security, or for any claim based thereon
or otherwise in respect thereof, shall be had against any incorporator,
stockholder, officer or director, past, present or future as such, of the
Company or of any predecessor or successor corporation, either directly or
through the Company or any 

 41
 

such predecessor or
successor corporation, whether by virtue of any constitution, statute or rule
of law, or by the enforcement of any assessment or penalty or otherwise; it
being expressly understood that this Indenture and the obligations issued
hereunder are solely corporate obligations, and that no such personal liability
whatever shall attach to, or is or shall be incurred by, the incorporators,
stockholders, officers or directors as such, of the Company or of any
predecessor or successor corporation, or any of them, because of the creation
of the indebtedness hereby authorized, or under or by reason of the obligations,
covenants or agreements contained in this Indenture or in any of the Securities
or implied therefrom; and that any and all such personal liability of every
name and nature, either at common law or in equity or by constitution or
statute, of, and any and all such rights and claims against, every such
incorporator, stockholder, officer or director as such, because of the creation
of the indebtedness hereby authorized, or under or by reason of the
obligations, covenants or agreements contained in this Indenture or in any of
the Securities or implied therefrom, are hereby expressly waived and released
as a condition of, and as a consideration for, the execution of this Indenture
and the issuance of such Securities.

ARTICLE XIII

MISCELLANEOUS PROVISIONS

SECTION
13.01  Effect on Successors and Assigns.

All the covenants, stipulations, promises and
agreements in this Indenture contained by or on behalf of the Company shall
bind its successors and assigns, whether so expressed or not.

SECTION
13.02  Actions by Successor.

Any act or proceeding by any provision of this
Indenture authorized or required to be done or performed by any board,
committee or officer of the Company shall and may be done and performed with
like force and effect by the corresponding board, committee or officer of any
corporation that shall at the time be the lawful successor of the Company.

SECTION
13.03  Notices.

Except as otherwise expressly provided herein any
notice or demand that by any provision of this Indenture is required or
permitted to be given or served by the Trustee or by the holders of Securities
to or on the Company may be given or served by being deposited first class
postage prepaid in a post-office letterbox addressed (until another address is
filed in writing by the Company with the Trustee), as follows:  135 South LaSalle Street, Suite 1560,
Chicago, Illinois 60603, Attention: Corporate Debt – NovaMed Inc. Debt
Securities.  Any notice, election,
request or demand by the Company or any Securityholder to or upon the Trustee
shall be deemed to have been sufficiently given or made, for all purposes, if
given or made in writing at the Corporate Trust Office of the Trustee.

 42
 

SECTION
13.04  Governing Law.

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

SECTION
13.05  Compliance Certificates and
Opinions.

(a)           Upon
any application or demand by the Company to the Trustee to take any action
under any of the provisions of this Indenture, the Company shall furnish to the
Trustee an Officers’ Certificate stating that all conditions precedent provided
for in this Indenture relating to the proposed action have been complied with
and an Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent have been complied with, except that in the case of any
such application or demand as to which the furnishing of such documents is
specifically required by any provision of this Indenture relating to such
particular application or demand, no additional certificate or opinion need be
furnished.

(b)           Each
certificate or opinion provided for in this Indenture and delivered to the
Trustee with respect to compliance with a condition or covenant in this
Indenture shall include (1) a statement that the Person making such certificate
or opinion has read such covenant or condition; (2) a brief statement as to the
nature and scope of the examination or investigation upon which the statements
or opinions contained in such certificate or opinion are based; (3) a statement
that, in the opinion of such Person, he has made such examination or
investigation as is necessary to enable him to express an informed opinion as
to whether or not such covenant or condition has been complied with; and (4) a
statement as to whether or not, in the opinion of such Person, such condition
or covenant has been complied with.

(c)           The
Company shall furnish to the Trustee, on April 30 of each year, a brief certificate
from the principal executive officer, principal financial officer or principal
accounting officer as to his or her knowledge of such obligor’s compliance with
all conditions and covenants under this Indenture.  For purposes of this subsection, such
compliance shall be determined without regard to any period of grace or
requirement of notice provided hereunder.

SECTION
13.06  Payments on Business Days.

Except as provided pursuant to Section 2.01 pursuant
to a Board Resolution, and as set forth in an Officers’ Certificate, or
established in one or more indentures supplemental to this Indenture, in any
case where the date of maturity of interest or principal of any Security or the
date of redemption of any Security shall not be a Business Day, then payment of
interest or principal (and premium, if any) may be made on the next succeeding
Business Day with the same force and effect as if made on the nominal date of
maturity or redemption, and no interest shall accrue for the period after such
nominal date.

SECTION
13.07  Conflict with Trust Indenture Act.

If and to the extent that any provision of this
Indenture limits, qualifies or conflicts with the duties imposed by Sections
310 to 317, inclusive, of the Trust Indenture Act, such imposed duties shall control.

 43
 

SECTION
13.08  Counterparts.

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

SECTION
13.09  Separability.

In case any one or more of the provisions contained in
this Indenture or in the Securities of any series shall for any reason be held
to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provisions of this
Indenture or of such Securities, but this Indenture and such Securities shall
be construed as if such invalid or illegal or unenforceable provision had never
been contained herein or therein.

SECTION
13.10  Assignment.

The Indenture is binding upon and inures to the
benefit of the parties thereto and their respective successors and
assigns.  This Indenture may not
otherwise be assigned by the parties thereto.

ARTICLE XIV

SUBORDINATION OF SECURITIES

SECTION
14.01  Subordination Terms.

The payment by the Company of the principal of (and
premium, if any) and interest on any series of Securities issued hereunder
shall be subordinated to the extent set forth in an indenture supplemental
hereto relating to such Securities.

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

 

	
  

  	
  NOVAMED, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Thomas S. Hall

  
	
   

  	
  Name: Thomas S.
  Hall

  
	
   

  	
  Title: President
  and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LASALLE BANK
  NATIONAL 

  
	
   

  	
  ASSOCIATION,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  as Trustee

  

 

 44
 

 

	
  

  	
  By:

  	
  /s/ Thomas
  Popovics

  
	
   

  	
  Name: Thomas
  Popovics

  
	
   

  	
  Title: Assistant
  Vice President

  

 

 45Exhibit
4.2

FIRST
SUPPLEMENTAL INDENTURE

DATED
AS OF JUNE 27, 2007

to

INDENTURE

dated
as of June 27, 2007

between

NOVAMED,
INC.,

as
Issuer

and

LASALLE
BANK NATIONAL ASSOCIATION,

as
Trustee

TABLE
OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
  ARTICLE I

  	
   

  	
   

  
	
   

  	
   

  	
  DEFINITIONS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.01.

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
  Section 1.02.

  	
   

  	
  Other Definitions

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE II

  	
   

  	
   

  
	
   

  	
   

  	
  DESIGNATION AND
  TERMS OF THE NOTES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 2.01.

  	
   

  	
  Title and Aggregate Principal Amount

  	
   

  	
  6

  
	
  Section 2.02.

  	
   

  	
  Execution and Authentication

  	
   

  	
  6

  
	
  Section 2.03.

  	
   

  	
  Form of the Notes

  	
   

  	
  6

  
	
  Section 2.04.

  	
   

  	
  Denomination

  	
   

  	
  6

  
	
  Section 2.05.

  	
   

  	
  Currency

  	
   

  	
  6

  
	
  Section 2.06.

  	
   

  	
  Designation of Depositary

  	
   

  	
  6

  
	
  Section 2.07.

  	
   

  	
  Maturity and Interest Payments

  	
   

  	
  7

  
	
  Section 2.08.

  	
   

  	
  Additional Notes

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE III

  	
   

  	
   

  
	
   

  	
   

  	
  PURCHASE OF
  NOTES UPON FUNDAMENTAL CHANGE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 3.01.

  	
   

  	
  Purchase of Notes at Option of the Holder Upon
  Fundamental Change

  	
   

  	
  8

  
	
  Section 3.02.

  	
   

  	
  Effect of Fundamental Change Purchase Notice

  	
   

  	
  11

  
	
  Section 3.03.

  	
   

  	
  Deposit of Fundamental Change Purchase Price

  	
   

  	
  12

  
	
  Section 3.04.

  	
   

  	
  Notes Purchased in Part

  	
   

  	
  12

  
	
  Section 3.05.

  	
   

  	
  Compliance with Securities Laws Upon Purchase of
  Notes

  	
   

  	
  13

  
	
  Section 3.06.

  	
   

  	
  No Fundamental Change Purchase Following
  Acceleration

  	
   

  	
  13

  
	
  Section 3.07.

  	
   

  	
  Trustee’s Fundamental Change Purchase Disclaimer

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE IV

  	
   

  	
   

  
	
   

  	
   

  	
  CONVERSION OF
  NOTES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.01.

  	
   

  	
  Conversion Privilege

  	
   

  	
  13

  
	
  Section 4.02.

  	
   

  	
  Conversion Procedure

  	
   

  	
  15

  
	
  Section 4.03.

  	
   

  	
  Fractional Shares

  	
   

  	
  16

  
	
  Section 4.04.

  	
   

  	
  Taxes on Conversion

  	
   

  	
  16

  
	
  Section 4.05.

  	
   

  	
  Payment Upon Conversion

  	
   

  	
  17

  
	
  Section 4.06.

  	
   

  	
  Adjustment of Conversion Price

  	
   

  	
  18

  
	
  Section 4.07.

  	
   

  	
  No Adjustment

  	
   

  	
  23

  

 

 i
 

 

	
  Section 4.08.

  	
   

  	
  Adjustment for Tax Purposes

  	
   

  	
  24

  
	
  Section 4.09.

  	
   

  	
  Temporary Reduction of Conversion Price

  	
   

  	
  24

  
	
  Section 4.10.

  	
   

  	
  Notice of Certain Transactions

  	
   

  	
  24

  
	
  Section 4.11.

  	
   

  	
  Effect of Reclassification, Consolidation, Merger or
  Sale on Conversion Privilege

  	
   

  	
  25

  
	
  Section 4.12.

  	
   

  	
  Disclaimer

  	
   

  	
  26

  
	
  Section 4.13.

  	
   

  	
  Additional Shares

  	
   

  	
  26

  
	
  Section 4.14.

  	
   

  	
  Limitation on Adjustments

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE V

  	
   

  	
   

  
	
   

  	
   

  	
  SUBORDINATION OF
  NOTES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.01.

  	
   

  	
  Agreement to Subordinate

  	
   

  	
  28

  
	
  Section 5.02.

  	
   

  	
  Liquidation, Dissolution, Bankruptcy

  	
   

  	
  29

  
	
  Section 5.03.

  	
   

  	
  Default on Designated Senior Indebtedness of the
  Company

  	
   

  	
  29

  
	
  Section 5.04.

  	
   

  	
  Acceleration of Payment of Notes

  	
   

  	
  30

  
	
  Section 5.05.

  	
   

  	
  When Distribution Must Be Paid Over

  	
   

  	
  30

  
	
  Section 5.06.

  	
   

  	
  Subrogation

  	
   

  	
  30

  
	
  Section 5.07.

  	
   

  	
  Relative Rights

  	
   

  	
  30

  
	
  Section 5.08.

  	
   

  	
  Subordination May Not Be Impaired by Company

  	
   

  	
  30

  
	
  Section 5.09.

  	
   

  	
  Rights of Trustee and Paying Agent

  	
   

  	
  30

  
	
  Section 5.10.

  	
   

  	
  Distribution or Notice to Representative

  	
   

  	
  31

  
	
  Section 5.11.

  	
   

  	
  Article V Not to Prevent Events of Default or
  Limit Right to Accelerate

  	
   

  	
  31

  
	
  Section 5.12.

  	
   

  	
  Trust Moneys Not Subordinated

  	
   

  	
  31

  
	
  Section 5.13.

  	
   

  	
  Trustee Entitled to Rely

  	
   

  	
  31

  
	
  Section 5.14.

  	
   

  	
  Trustee to Effectuate Subordination

  	
   

  	
  32

  
	
  Section 5.15.

  	
   

  	
  Trustee Not Fiduciary for Holders of Senior
  Indebtedness

  	
   

  	
  32

  
	
  Section 5.16.

  	
   

  	
  Reliance by Holders of Senior Indebtedness on
  Subordination Provisions

  	
   

  	
  32

  
	
  Section 5.17.

  	
   

  	
  No Layering of Indebtedness

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE VI

  	
   

  	
   

  
	
   

  	
   

  	
  DEFAULT AND
  REMEDIES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 6.01.

  	
   

  	
  Events of Default

  	
   

  	
  32

  
	
  Section 6.02.

  	
   

  	
  Amendment and Waiver

  	
   

  	
  33

  

 

 ii
 

 

	
  

  	
   

  	
  ARTICLE VII

  	
   

  	
   

  
	
   

  	
   

  	
  MISCELLANEOUS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 7.01.

  	
   

  	
  Ratification of Base Indenture; Supplemental
  Indenture Part of Base Indenture

  	
   

  	
  33

  
	
  Section 7.02.

  	
   

  	
  Concerning the Trustee

  	
   

  	
  33

  
	
  Section 7.03.

  	
   

  	
  Counterparts

  	
   

  	
  34

  
	
  Section 7.04.

  	
   

  	
  Governing Law

  	
   

  	
  34

  
	
  Schedule 4.13

  	
   

  	
      Additional Shares

  	
   

  	
  Sch-1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  Form of Note

  	
   

  	
  A-1

  

 

 iii

FIRST SUPPLEMENTAL INDENTURE, dated as of June 27,
2007 (this “First Supplemental Indenture”),
to the Indenture dated as of June 27, 2007 (the “Base Indenture” and, together with this First Supplemental
Indenture, as the same shall be supplemented and modified from time to time,
the “Indenture”), between NovaMed,
Inc., a Delaware corporation (the “Company”)
and LaSalle Bank National Association, a national banking association, as
Trustee (the “Trustee”).

WHEREAS, the Base Indenture provides for the issuance
from time to time of the Company’s Securities (as defined in the Base
Indenture) in one or more series; 

WHEREAS, Section 9.01(g) of the Base Indenture
provides that the Company and the Trustee may from time to time enter into one
or more indentures supplemental thereto to establish the form and terms and
conditions of Securities of any series as permitted by Section 2.01 thereof;

WHEREAS, for its lawful corporate purposes, the
Company has duly authorized the creation of the Notes in an aggregate principal
amount of $75,000,000 and their designation as its 1.0% Convertible Senior
Subordinated Notes due June 15, 2012;

WHEREAS, the Company proposes by this First
Supplemental Indenture to supplement and amend in certain respects the Base
Indenture insofar as it will apply only to the Notes (and not to any other
series of Securities) and to provide for the form, terms and conditions and
other provisions of the Notes as a separate series of Securities to be issued
under the Indenture;

WHEREAS, all acts and things necessary to duly
authorize and reserve for issuance shares of Common Stock issuable upon the
conversion of the Notes have been done and performed; and 

WHEREAS, all acts and things necessary to make the
Notes, when executed by the Company and authenticated and delivered by the
Trustee, the valid, binding and legal obligations of the Company, and to
constitute this First Supplemental Indenture a valid agreement according to its
terms, have been done and performed, and the execution of this First Supplemental
Indenture and the issuance hereunder of the Notes have in all respects been
duly authorized.

NOW, THEREFORE, in consideration of the premises and
the purchase of the Securities by the holders thereof, it is mutually
covenanted and agreed as follows for the equal and ratable benefit of the
holders of Securities:

Article I

Definitions

Section 1.01.                             Definitions.

(a)                                  Capitalized terms used herein and not
otherwise defined herein shall have the respective meanings ascribed thereto in
the Base Indenture.

(b)                                 The rules of interpretation set forth in
the Base Indenture shall be applied hereto as if set forth in full herein.

(c)                                  For all purposes of this First
Supplemental Indenture, except as otherwise expressly provided or unless the
context otherwise requires, the following terms shall have the following
respective meanings (such meanings shall apply equally to both the singular and
plural forms of the respective terms):

“Applicable Procedures”
means, with respect to any transfer or exchange of beneficial ownership
interests in a Global Note, the rules and procedures of the Depositary, in
each case to the extent applicable to such transfer or exchange.

“Business Day”
has the meaning given it in the Base Indenture.

“Capital Stock”
has the meaning given it in the Base Indenture.

“Cash”
means such coin or currency of the United States as at any time of payment is
legal tender for the payment of public and private debts.

“Common Stock”
means the common stock of the Company, par value $0.01 per share, as it exists
on the date of this First Supplemental Indenture and any shares of any class or
classes of Capital Stock of the Company resulting from any reclassification or
reclassifications thereof and which have no preference in respect of dividends
or of amounts payable in the event of any voluntary or involuntary liquidation,
dissolution or winding-up of the Company and which are not subject to
redemption by the Company; provided
that, if at any time there shall be more than one such resulting class, the
shares of each such class then so issuable on conversion of the Notes shall be
substantially in the proportion which the total number of shares of such class
resulting from all such reclassifications bears to the total number of shares
of all such classes resulting from all such reclassifications.

“Closing Sale Price” of the Common Stock means, as of any
date of determination, the closing per share sale price (or, if no such closing
sale price is reported on such day, the average of the bid and asked prices or,
if more than one in either case, the average of the average bid and the average
asked prices) at 4:00 p.m. (New York City time) on such date as reported
in composite transactions for the principal U.S. securities exchange on which
the Common Stock is traded or, if the Common Stock is not listed on a U.S.
national securities exchange, as reported by the National Quotation Bureau
Incorporated.

“Continuing
Directors” means, as of any date of determination, any member of the
Board of Directors who (a) was a member of the Board of Directors as of the
date hereof or (b) was nominated for election or elected to the Board of
Directors with the approval of a majority of the Continuing Directors who were
members of the Board of Directors at the time of such nomination or election.

“Conversion Rate”
means, as of any date of determination, an amount equal to $1,000 divided by
the then applicable Conversion Price on such date.  As of the date hereof and subject to
adjustment pursuant to Section 4.06, the Conversion Rate with respect to the
Notes is

 2
 

approximately 156.9612 shares of Common Stock, rounded to the
nearest 1/10,000th of a share, for each $1,000 principal amount of the Notes.

“Conversion Value”
of a Note means, as of any date of determination, the product of the Closing Sale
Price of the Common Stock on such date multiplied by the then current
Conversion Rate of such Note on such date.

“Daily Conversion
Value” means, for each Trading Day during the Conversion Period for
each $1,000 aggregate principal amount of Notes, one-fiftieth of the product of
the then applicable Conversion Rate multiplied by the Volume Weighted Average
Price of the Common Stock on such Trading Day.

“Designated Senior
Indebtedness” means the Senior Credit Facility and any other Senior
Indebtedness of the Company which, as of the date of determination, has an
aggregate principal amount outstanding of, or under which, as of the date of
determination, the holders thereof are committed to lend up to, at least $20
million and is specifically designated by the Company in the instrument
evidencing or governing such Senior Indebtedness as “Designated Senior
Indebtedness.”

“‘ex’ date,”
when used with respect to any dividend or distribution, means the first date on
which the Common Stock trades, regular way, on the relevant exchange or in the
relevant market from which the Opening Sale Price or Closing Sale Price, as the
case may be, was obtained without the right to receive such dividend or
distribution.

“Governmental
Obligations” has the meaning given it in the Base Indenture.

“Holder” means the Person or Persons in whose
name or names a particular Note shall be registered on the books of the Company
kept for that purpose in accordance with the terms of this Indenture.

“Final Maturity Date”
means June 15, 2012.

“Market Disruption
Event” means the occurrence or existence for more than one half hour
period in the aggregate on any Scheduled Trading Day for the Common Stock of
any suspension or limitation imposed on trading, by reason of movements in
price exceeding limits permitted by the NASDAQ or otherwise, in the Common
Stock or in any options, contracts or future contracts relating to the Common
Stock, and such suspension or limitation occurs or exists at any time before
1:00 p.m. (New York City time) on such day.

“NASDAQ”
means the Nasdaq Global Select Market.

“Notes” means
the 1.0% Convertible Senior Subordinated Notes due June 15, 2012, or any of
them (each, a “Note”).

“Obligations”
has the meaning given it in the Base Indenture.

“Opening Sale Price” of the Common Stock means, as of any
date of determination, the opening per share sale price (or, if no such opening
sale price is reported on such day, the

 3
 

average of the bid and
asked prices or, if more than one in either case, the average of the average
bid and the average asked prices) at the commencement of trading on such date
as reported in composite transactions for the principal U.S. securities
exchange on which the Common Stock is traded.

“Qualifying
Fundamental Change” means (i) any Change in Control included in
clause (i) or (ii) of the definition of Change in Control, excluding any
merger, consolidation, conveyance, sale, transfer or lease otherwise
constituting a Change in Control in respect of which at least 90% of the
consideration paid for the Common Stock in that transaction, excluding Cash
payments for fractional shares and Cash payments made pursuant to dissenters’
appraisal rights, consists of shares of common stock traded on NASDAQ or
another U.S. national securities exchange, or will be so traded immediately
following the merger or consolidation, and, as a result of the merger or
consolidation, the Notes become convertible into such shares of such common
stock and (ii) any Termination of Trading.

“Residual Amount”
means the total of the Daily Net Share Settlement Values for the 50 Trading
Days within the Conversion Period.

“Scheduled Trading Day”
means any day on which NASDAQ or, if the Common Stock is not listed on NASDAQ,
the principal other U.S. national securities exchange on which the Common Stock
is then listed is
scheduled to be open for trading.

“Senior Credit
Facility” has the meaning given it in the Base Indenture.

“Senior Indebtedness” has the meaning given it in the Base
Indenture.

“Significant
Subsidiary” has the meaning given it in the Base Indenture.

“Subsidiary”
has the meaning given it in the Base Indenture.

“Trading Day” means a
day on which (i) there is no Market Disruption Event and (ii) NASDAQ or, if the
Common Stock is not listed on NASDAQ, the principal other U.S. national securities
exchange on which the Common Stock is then listed
is open for trading or, if the Common Stock is not so listed, any Business
Day.  A “Trading Day” only includes those
days that have a scheduled closing time of 4:00 p.m. (New York City time) or
the then standard closing time for regular trading on the relevant exchange or
trading system. 

“Trading Price” means,
on any date of determination with respect to any Note, the average of the
secondary bid quotations per Note obtained by the Conversion Agent for
$1,000,000 principal amount of Notes at approximately 3:30 p.m. (New York
City time) on such determination date from three independent nationally
recognized securities dealers selected by the Company; provided
that, if at least three such bids cannot reasonably be obtained, but two such
bids can reasonably be obtained, then the average of these two bids shall be
used; provided, further, that, if at least two
such bids cannot reasonably be obtained, but one such bid can reasonably be
obtained, this one bid shall be used. 
If, on any date of determination, the Conversion Agent cannot reasonably
obtain at least one bid for $1,000,000 principal amount of the Notes from an
independent nationally recognized securities dealer, then the Trading Price of

 4
 

such Notes on such date
of determination will be deemed to be less than 97% of the Conversion Value.

“Volume Weighted
Average Price” per share of Common Stock (or any security
constituting a portion of the Reference Property, if applicable) on any Trading
Day means the volume weighted average price on the principal exchange or
over-the-counter market on which the Common Stock (or such security
constituting a portion of the Reference Property, if applicable) is then listed
or traded, from 9:30 a.m. to 4:00 p.m. (New York City time) on that Trading Day
as displayed under the heading “Bloomberg VWAP” on Bloomberg page NOVA Q Equity
AQR or any successor thereto (or the Bloomberg page for such security
constituting a portion of the Reference Property, if applicable), or if such
Volume Weighted Average Price is not available, the Board of Directors’
reasonable, good faith estimate of the volume weighted average price of the
shares of Common Stock (or such security constituting a portion of the
Reference Property, if applicable) on such Trading Day (whose determination
shall be conclusive evidence of such Volume Weighted Average Price and which
shall be evidenced by a schedule of the Company’s calculations delivered to the
Trustee and the Conversion Agent).

“Voting Stock”
means any class or classes of Capital Stock or other interests then outstanding
that are normally entitled (without regard to the occurrence of any
contingency) to vote in the election of the board of directors, managers or
trustees.

Section 1.02.                                             Other Definitions.

	
  Term

  	
   

  	
  Defined in Section

  
	
   

  	
   

  	
   

  	
   

  
	
  “Additional
  Notes”

  	
   

  	
   

  	
  2.08

  
	
  “Additional
  Shares”

  	
   

  	
   

  	
  4.13(a)

  
	
  “Cash
  Percentage”

  	
   

  	
   

  	
  4.05(c)

  
	
  “Change in
  Control”

  	
   

  	
   

  	
  3.01(a)

  
	
  “Closing Sale
  Price Condition”

  	
   

  	
   

  	
  4.01(a)

  
	
  “Conversion
  Agent”

  	
   

  	
   

  	
  4.02

  
	
  “Conversion
  Date”

  	
   

  	
   

  	
  4.02

  
	
  “Conversion
  Notice”

  	
   

  	
   

  	
  4.02

  
	
  “Conversion
  Period”

  	
   

  	
   

  	
  4.05(a)

  
	
  “Conversion
  Price”

  	
   

  	
   

  	
  4.06

  
	
  “Daily
  Conversion Value”

  	
   

  	
   

  	
  4.05(d)

  
	
  “Daily Net Share
  Settlement Value”

  	
   

  	
   

  	
  4.05(a)

  
	
  “Effective Date”

  	
   

  	
   

  	
  4.13(b)

  
	
  “Expiration
  Date”

  	
   

  	
   

  	
  4.06(e)

  
	
  “Expiration
  Time”

  	
   

  	
   

  	
  4.06(e)

  
	
  “Fundamental
  Change”

  	
   

  	
   

  	
  3.01(a)

  
	
  “Fundamental
  Change Purchase Date”

  	
   

  	
   

  	
  3.01(a)

  
	
  “Fundamental
  Change Purchase Notice”

  	
   

  	
   

  	
  3.01(c)

  
	
  “Fundamental
  Change Purchase Price”

  	
   

  	
   

  	
  3.01(a)

  
	
  “Interest
  Payment Date”

  	
   

  	
   

  	
  2.04(b)

  
	
  “Maximum
  Adjusted Conversion Rate”

  	
   

  	
   

  	
  4.13(g)

  
	
  “Non-Payment
  Default”

  	
   

  	
   

  	
  5.03(a)

  
	
  “Payment
  Blockage Notice”

  	
   

  	
   

  	
  5.03(a)

  
	
  “Purchased
  Shares”

  	
   

  	
   

  	
  4.06(e)

  
	
  “Purchase
  Premium”

  	
   

  	
   

  	
  4.06(f)

  
	
  “Quarter”

  	
   

  	
   

  	
  4.01(a)

  
	
  “Record Date”

  	
   

  	
   

  	
  2.04(b)

  

 

 5
 

 

	
  Term

  	
   

  	
  Defined in Section

  
	
   

  	
   

  	
   

  	
   

  
	
  “Reference
  Property”

  	
   

  	
   

  	
  4.11

  
	
  “Rights Plan”

  	
   

  	
   

  	
  4.06(c)

  
	
  “Stock Price”

  	
   

  	
   

  	
  4.13(b)

  
	
  “Termination of
  Trading”

  	
   

  	
   

  	
  3.01(a)

  
	
  “Transforming
  Transaction”

  	
   

  	
   

  	
  4.01(b)

  
	
  “Trigger Event”

  	
   

  	
   

  	
  4.06(c)

  
	
  “Triggering
  Distribution”

  	
   

  	
   

  	
  4.06(d)

  
	
  “Unissued
  Shares”

  	
   

  	
   

  	
  3.01(a)

  
	
  “Volume Weighted
  Average Price”

  	
   

  	
   

  	
  4.05(d)

  

 

Article II

Designation and Terms of the Notes

Section 2.01.                             Title and Aggregate
Principal Amount.  There shall be a series of Securities
designated “1.0% Convertible Senior Subordinated Notes due June 15, 2012”
issuable in an unlimited aggregate principal amount.

Section 2.02.                             Execution and
Authentication.  The Notes may forthwith be executed by the
Company and delivered to the Trustee for authentication and delivery by the
Trustee in accordance with the provisions of Section 2.04 of the Base
Indenture.

Section 2.03.                             Form of the Notes.  The Notes and the corresponding Trustee’s certificate
of authentication shall be substantially in the form of Exhibit A hereto,
which Exhibit is incorporated in and made part of this First Supplemental
Indenture, with such appropriate insertions, omissions, substitutions and other
variations as are required or permitted by the Indenture, and may have such
letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with the rules of any
securities exchange or as may, consistently herewith, be determined by the
officers of the Company executing such Notes, as evidenced by their execution
of the Notes.

Section 2.04.                             Denomination.  Each Note shall be in the denomination of $1,000 or any
integral multiple thereof.

Section 2.05.                             Currency. 
All obligations of the Company in respect of principal, interest or any
other amount owing upon the Notes shall be payable in U.S. dollars, and the
Notes shall be denominated in U.S. dollars.

Section 2.06.                             Designation of
Depositary.  Initially, the Depositary for the Notes will
be The Depository Trust & Clearing Corporation.  The Notes, in the form of Global Notes, will
be registered in the name of the Depositary or its nominee, Cede & Co., and
delivered by the Trustee to the Depositary or a custodian appointed by the
Depositary for crediting to the accounts of its participants.

 6
 

Section 2.07.                             Maturity and Interest
Payments.

(a)                                  The date on which the principal of the
Notes is due and payable, unless earlier converted, accelerated, redeemed or
repurchased pursuant to the Indenture, shall be June 15, 2012 (the “Final Maturity Date”).

(b)                                 The Company shall pay interest on the
Notes at a rate of 1.0% per annum, payable semi-annually in arrears on June 15
and December 15 of each year (each, an “Interest Payment Date”), or if
any such day is not a Business Day, the immediately following Business Day,
commencing December 15, 2007. 
For so long as the Notes are held in book-entry only form, interest
shall be paid on each Interest Payment Date to the Holder of such Note in whose
name the Note is registered at 5:00 p.m. (New York City time) on the Business
Day before the Interest Payment Date (a “Book-Entry
Record Date”).  In the event
that the Notes do not remain in book-entry only form or are not in the form of
a Global Security, interest shall be paid on each Interest Payment Date to the
Holder of such Note in whose name the Note is registered at 5:00 p.m. (New York
City time) on June 1 or December 1 (each, together with each Book-Entry Record
Date, a “Record Date”), as the
case may be, next preceding the related Interest Payment Date.  Interest shall be computed on the basis of a
360-day year comprised of twelve 30-day months.  In the event of the
maturity, conversion, or purchase of a Note by the Company at the option of the
Holder, interest shall cease to accrue on such Note.  Interest on the Notes shall accrue from the
most recent date to which interest has been paid or, if no interest has been
paid, from the date of issuance.

(c)                                  Upon conversion of a Note, (i) a
Holder shall not receive any Cash payment of interest (unless such conversion
occurs between a Record Date and the Interest Payment Date to which it relates,
in which case a Holder on the Record Date will receive on the Interest Payment
Date accrued and unpaid interest) and the
Conversion Rate shall not be adjusted to account for accrued and unpaid
interest, except that the Company shall pay, on the Final Maturity Date,
accrued and unpaid interest on any Notes surrendered on or prior to the
fifty-fifth Scheduled Trading Day prior to the Final Maturity Date to the
converting Holder notwithstanding such conversion, and (ii) the Company’s
delivery to a Holder of Cash and shares, if any, of Common Stock into which the
Note is convertible shall be deemed to satisfy its obligation with respect to
such Note, and any accrued but unpaid interest shall be deemed to be paid in
full upon conversion, rather than cancelled, extinguished or forfeited.

(d)                                 Notes surrendered for conversion by a
Holder after 5:00 p.m. (New York City time) on any Record Date but prior to the
next Interest Payment Date must be accompanied by payment of an amount equal to
the interest  that the Holder is to receive on the
Notes; provided, however, that no such payment need be made (1) if the
Company has specified a Fundamental Change Purchase Date that is after a Record
Date and on or prior to the next Interest Payment Date, (2) with respect
to any Notes surrendered for conversion following the Record Date for the
payment of interest  immediately preceding the Final Maturity
Date or (3) only to the extent of overdue interest, if any overdue
interest exists at the time of conversion with respect to such Notes.

 7
 

Section 2.08.                             Additional Notes.

(a)                                  The Company may, from time to time,
subject to compliance with any other applicable provisions of this Indenture,
without the consent of any Holder, issue pursuant to this Indenture additional
Notes (“Additional Notes”) that
shall have terms and conditions and “CUSIP” numbers identical to those of the
other outstanding Notes, except with respect to the issue date and the issue
price.  Any Additional Notes and the
Notes initially issued hereunder shall be treated as a single class for all
purposes and any such Additional Notes will vote on all matters as one class
with the Notes initially issued hereunder. 
For the avoidance of doubt, references herein to the Notes include
Additional Notes, if any.

(b)                                 With respect to any Additional Notes, the
Company shall set forth in an Officers’ Certificate pursuant to a resolution of
the Board of Directors of the Company, copies of which shall be delivered to
the Trustee, the following information:

(i)                                     the aggregate principal amount of such
Additional Notes to be authenticated and delivered pursuant to this Indenture;
and

(ii)                                  the issue date and the issue price of
such Additional Notes; provided
that no Additional Notes may be issued at a price that would cause such
Additional Notes to have “original issue discount” within the meaning of
Section 1273 of the Internal Revenue Code of 1986, as amended.

In addition, the Company shall deliver to the Trustee
an Opinion of Counsel certifying as to the satisfaction of all conditions
precedent to the authentication by the Trustee of such Additional Notes.

Article III

Purchase of Notes Upon Fundamental Change

Section 3.01.                                             Purchase of Notes at
Option of the Holder Upon Fundamental Change.

(a)                                  If at any time that Notes remain
outstanding there shall occur a Fundamental Change, Notes shall be purchased by
the Company at the option of the Holders, as of the date that is 30 Business
Days after the occurrence of the Fundamental Change (the “Fundamental Change Purchase Date”) at a
purchase price equal to 100% of the principal amount of the Notes, together
with any accrued and unpaid interest to, but excluding, the Fundamental Change
Purchase Date (the “Fundamental Change Purchase Price”),
payable in Cash, subject to satisfaction by or on behalf of any Holder of the
requirements set forth in subsection (c) of this Section 3.01.

A “Fundamental Change” shall
mean the occurrence of a Change in Control or a Termination of Trading.

A “Change in Control” shall
be deemed to have occurred if any of the following occurs after the date
hereof:

 8
 

(i)                                     any “person” or “group” (as such terms
are defined below) is or becomes the “beneficial owner” (as defined below),
directly or indirectly, of shares of Voting Stock of the Company representing
50% or more of the total voting power of all outstanding classes of Voting
Stock of the Company or has the power, directly or indirectly, to elect a
majority of the members of the Board of Directors;

(ii)                                  the Company consolidates with, or merges
with or into, another Person or the Company sells, assigns, conveys, transfers,
leases or otherwise disposes of all or substantially all of the assets of the
Company, 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” (as defined below), directly or indirectly, the
shares of Voting Stock of the Company immediately prior to such transaction “beneficially
own” (as defined below), directly or indirectly, shares of Voting Stock of the
Company representing at least a majority of the total voting power of all
outstanding classes of Voting Stock of the surviving or transferee Person;

(iii)                               a majority of the members of the Board of Directors
are not Continuing Directors; or

(iv)                              the holders of the Capital Stock of the
Company approve any plan or proposal for the liquidation or dissolution of the
Company (whether or not otherwise in compliance with the terms of the
Indenture).

For the purpose of the definition of “Change in Control,” (i) ”person”
and “group” have the meanings given such terms under
Section 13(d) and 14(d) of the Exchange Act or any successor
provision to either of the foregoing, and the term “group” includes 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 any
successor provision thereto), (ii) a “beneficial owner” shall be
determined in accordance with Rule 13d-3 under the Exchange Act, as in
effect on the date of the Indenture, except that the number of shares of Voting
Stock of the Company shall be deemed to include, in addition to all outstanding
shares of Voting Stock of the Company and Unissued Shares deemed to be held by
the “person” or “group” (as such terms are defined above) or other Person with
respect to which the Change in Control determination is being made, all
Unissued Shares deemed to be held by all other Persons, and (iii) the
terms “beneficially owned” and “beneficially own” shall have meanings
correlative to that of “beneficial owner.”  The term “Unissued Shares” means
shares of Voting Stock not outstanding that are subject to options, warrants,
rights to purchase or conversion privileges exercisable within 60 days of the
date of determination of a Change in Control.

Notwithstanding anything to the contrary set forth in
this Section 3.01, Holders will not have the right to require the Company
to purchase any Notes as a result of any transaction described in clause (ii)
of the definition of “Change in Control” above, and the Company will not be
required to deliver a written notice of a Fundamental Change, if at least 90%
of the consideration paid for the Common Stock, excluding Cash payments for
fractional shares and Cash payments made pursuant to dissenters’ appraisal
rights, in a merger, consolidation, conveyance, sale, transfer or lease
otherwise constituting a Change in Control consists of shares of common stock
traded on NASDAQ or another U.S. national securities exchange, or will be so

 9
 

traded immediately
following the merger or consolidation, and, as a result of the merger or
consolidation, the Notes become convertible into such shares of such common
stock.

A “Termination of Trading” means
that the Common Stock or other securities into which the Notes are convertible
are not approved for listing on NASDAQ and are not listed for trading on
another U.S. national securities exchange.

(b)                                 Within 10 Business Days after the
occurrence of a Fundamental Change, the Company shall mail a written notice of
the Fundamental Change to the Trustee and to each Holder (and to beneficial
owners as required by applicable law).  Failure to timely provide such
notice pursuant to this Section 3.01(b) shall constitute an Event of Default
with respect to Notes; for the avoidance of doubt, such Event of Default shall
be additional to the Events of Default specified in Section 6.01 of the Base
Indenture.  The notice shall include the
form of a Fundamental Change Purchase Notice to be completed by the Holder and
shall state:

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

(ii)                                  the date by which the Fundamental Change
Purchase Notice pursuant to this Section 3.01 must be given;

(iii)                               the Fundamental Change Purchase Date;

(iv)                              the Fundamental Change Purchase Price;

(v)                                 the Holder’s right to require the Company
to purchase the Notes;

(vi)                              briefly, the conversion rights of the
Notes;

(vii)                           the name and address of each Paying Agent and
Conversion Agent;

(viii)                        the Conversion Price and any adjustments thereto
(including the amount of Additional Shares of Common Stock that are deliverable
pursuant to Section 4.13, if any);

(ix)                                that Notes as to which a Fundamental
Change Purchase Notice has been given may be converted into Cash and Common
Stock (if any) pursuant to the Indenture only to the extent that the
Fundamental Change Purchase Notice has been withdrawn in accordance with the
terms of the Indenture;

(x)                                   the procedures that the Holder must
follow to exercise rights under this Section 3.01;

(xi)                                the procedures for withdrawing a
Fundamental Change Purchase Notice, including a form of notice of withdrawal;
and

(xii)                             that the Holder must satisfy the requirements set
forth in the Indenture and the Notes in order to convert the Notes.

 10

If any of the Notes is in the form of a Global Note,
then the Company shall modify such notice to the extent necessary to accord
with the procedures of the Depositary applicable to the repurchase of Global
Notes.

(c)                                  A Holder may exercise its rights specified
in subsection (a) of this Section 3.01 upon delivery of a
written notice (which shall be in substantially the form included in Exhibit A
hereto and which may be delivered by letter, overnight courier, hand delivery,
facsimile transmission or in any other manner reasonably acceptable to the
Paying Agent and, in the case of Global Notes, may be delivered electronically
or by other means in accordance with the Depositary’s customary procedures) of
the exercise of such rights (a “Fundamental Change Purchase Notice”) to any
Paying Agent during the period between the Fundamental Change Purchase Notice
and 5:00 p.m. (New York City time) on the second Trading Day next preceding the
Fundamental Change Purchase Date.

The delivery of such Note to any Paying Agent (together
with all necessary endorsements) at the office of such Paying Agent shall be a
condition to the receipt by the Holder of the Fundamental Change Purchase Price
therefor.

The Company shall purchase from the Holder thereof,
pursuant to this Section 3.01, a portion of a Note if the principal amount
of such portion is $1,000 or an integral multiple of $1,000.  Provisions
of the Indenture that apply to the purchase of all of a Note pursuant to this
Article III also apply to the purchase of a portion of a Note.

Notwithstanding anything herein to the contrary, any
Holder delivering to a Paying Agent the Fundamental Change Purchase Notice
contemplated by this subsection (c) shall have the right to withdraw
such Fundamental Change Purchase Notice in whole or in a portion thereof that
is a principal amount of $1,000 or in an integral multiple thereof at any time
prior to 5:00 p.m. (New York City time) on the Business Day preceding the
Fundamental Change Purchase Date by delivery of a written notice of withdrawal
to the Paying Agent in accordance with Section 3.02 and such withdrawal
right shall expire at 5:00 p.m. (New York City time) on the Business Day
preceding the Fundamental Change Purchase Date unless the Company shall default
in making the Fundamental Change Purchase Price payment when due, in which case
the withdrawal right shall terminate at 5:00 p.m. (New York City time) on the
date such default is cured and such Note is purchased.

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

Anything herein to the contrary notwithstanding, in
the case of Global Notes, any Fundamental Change Purchase Notice may be
delivered or withdrawn and such Notes may be surrendered or delivered for
purchase in accordance with the Applicable Procedures as in effect from time to
time.

Section 3.02.                                             Effect of Fundamental
Change Purchase Notice.

Upon receipt by any Paying Agent of the Fundamental
Change Purchase Notice specified in Section 3.01(c), the Holder of the
Note in respect of which such Fundamental Change Purchase Notice was given
shall (unless such Fundamental Change Purchase Notice is

 11
 

withdrawn as specified
below) thereafter be entitled to receive the Fundamental Change Purchase Price
with respect to such Note.  Such Fundamental Change Purchase Price shall
be paid to such Holder promptly following the later of (a) the Fundamental
Change Purchase Date with respect to such Note (provided the conditions in Section 3.01(c) have been
satisfied) and (b) the time of delivery of such Note to a Paying Agent by
the Holder thereof in the manner required by Section 3.01(c).  Notes
in respect of which a Fundamental Change Purchase Notice has been given by the
Holder thereof may not be converted into shares of Common Stock pursuant to
Article IV hereof on or after the date of the delivery of such Fundamental
Change Purchase Notice unless such Fundamental Change Purchase Notice has first
been validly withdrawn.

Section 3.03.                                             Deposit of Fundamental Change
Purchase Price.

On or before 11:00 a.m., New York City time, on
the Fundamental Change Purchase Date, the Company shall deposit with the
Trustee or with a Paying Agent (other than the Company or an Affiliate of the
Company) an amount of money (in immediately available funds if deposited on
such Fundamental Change Purchase Date) sufficient to pay the aggregate
Fundamental Change Purchase Price of all the Notes or portions thereof that are
to be purchased as of such Fundamental Change Purchase Date.  The manner
in which the deposit required by this Section 3.03 is made by the Company
shall be at the option of the Company; provided that
such deposit shall be made in a manner reasonably acceptable to the Trustee and
the Paying Agent such that the Trustee or a Paying Agent shall have immediately
available funds on the Fundamental Change Purchase Date.

If a Paying Agent holds, in accordance with the terms
hereof, money sufficient to pay the Fundamental Change Purchase Price of any
Note for which a Fundamental Change Purchase Notice has been tendered and not
withdrawn in accordance with the Indenture, then, on the Fundamental Change
Purchase Date, such Note will cease to be outstanding and the rights of the
Holder in respect thereof shall terminate (other than the right to receive the
Fundamental Change Purchase Price as aforesaid).  The Company shall
publicly announce the principal amount of Notes purchased as a result of such
Fundamental Change on or as soon as practicable after the Fundamental Change Purchase
Date.

To the extent that the aggregate amount of Cash
deposited by the Company pursuant to this Section 3.03 exceeds the
aggregate Fundamental Change Purchase Price of the Notes or portions thereof
that the Company is obligated to purchase, then promptly after the Fundamental
Change Purchase Date the Trustee or a Paying Agent, as the case may be, shall
return any such excess Cash to the Company.

Section 3.04.                                             Notes Purchased in Part.

Any Note that is to be purchased only in part shall be
surrendered at the office of a Paying Agent, and promptly after the Fundamental
Change Purchase Date the Company shall execute and the Trustee shall
authenticate and deliver to the Holder of such Note, without service charge, a
new Note or Notes, of such authorized denomination or denominations as may be
requested by such Holder, in aggregate principal amount equal to, and in
exchange for, the portion of the principal amount of the Note so surrendered
that is not purchased.

 12
 

The Corporate Trust office shall initially be such
office or agency for the purposes described in this Section 3.04.

Section 3.05.                                             Compliance with
Securities Laws Upon Purchase of Notes.

In connection with any offer to purchase or repurchase
Notes under Section 3.01, the Company shall (a) comply with Rule 13e-4,
Rule 14e-1 and any other tender offer rules under the Exchange Act,
(b) file the related Schedule TO (or any successor or similar
schedule, form or report), if required, under the Exchange Act and
(c) otherwise comply with all federal and state securities laws in
connection with such offer to purchase or repurchase Notes, all so as to permit
the rights of the Holders and obligations of the Company under
Section 3.01 through Section 3.04 to be exercised in the time and in
the manner specified therein.

Section 3.06.                                             No Fundamental Change
Purchase Following Acceleration.

No Notes will be purchased by the Company under
Section 3.01 if the principal amount of the Notes has been accelerated under
Section 6.02 of the Base Indenture, and such acceleration has not been
rescinded, on or prior to the Fundamental Change Purchase Date.

Section 3.07.                                             Trustee’s Fundamental
Change Purchase Disclaimer.

The Trustee has no duty to determine when a
Fundamental Change has occurred, or when purchases of Notes upon a Fundamental
Change under this Article III should be made. 
The Trustee shall not be accountable for and makes no representation as
to the Fundamental Change Purchase Price payable in respect of any Fundamental
Change.  The Trustee shall not be
responsible for the Company’s failure to comply with this Article III.

Article IV

Conversion of Notes

Section 4.01.                                             Conversion Privilege.

(a)                                  Subject to the further provisions of this
Article IV, a Holder of a Note may convert the principal amount of such
Note (or any portion thereof equal to $1,000 or any integral multiple of $1,000
in excess thereof) into Cash and Common Stock at any time prior to 5:00 p.m.
(New York City time) on December 15, 2011, at the Conversion Price then in
effect, if, during any calendar quarter (the “Quarter”)
commencing after the date hereof, the Closing Sale Price of the Common Stock
for at least 20 Trading Days in the period of 30 consecutive Trading Days
ending on the last Trading Day of the Quarter preceding the Quarter in which
the conversion occurs is more than 120% of the Conversion Price of the Notes in
effect on that last Trading Day (the “Closing Sale Price
Condition”), subject to the exceptions provided in Section 4.01(b).

Provisions of the Indenture that apply to conversion
of all of a Note also apply to conversion of a portion of a Note.

A Note in respect of which a Holder has delivered a
Fundamental Change Purchase Notice pursuant to
Section 3.01(c) exercising the option of such Holder to require the
Company

 13
 

to purchase such Note may
be converted only if such Fundamental Change Purchase Notice is withdrawn by a
written notice of withdrawal delivered to a Paying Agent prior to
5:00 p.m. (New York City time) on the Scheduled Trading Day immediately
preceding the Fundamental Change Purchase Date in accordance with
Section 3.02.

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

(b)                                 Even if the Closing Sale Price Condition
is not satisfied,

(i)                                     if the Trading Price for the Notes on
each Trading Day during any five consecutive Trading Day period was, as
determined following a request in accordance with the procedures described in
Section 4.01(c), less than 97% of the Closing Sale Price of Common Stock on
such date multiplied by the then current Conversion Rate, a Holder may
surrender Notes for conversion at any time during the following 10 Trading Days,
provided, for the avoidance of doubt, that the five dates of determination
within any five consecutive Trading Day period referred to above shall not
include (i) any day on which there is a Market Disruption Event or (ii) any day
on which NASDAQ or, if the Common Stock is not listed on NASDAQ, the principal
other U.S. national securities exchange on which the Common Stock is then
listed is not open for trading.

(ii)                                  in the event that the Company declares

(A)                      a
dividend or distribution of any rights or warrants to all or substantially all
holders of Common Stock entitling them to subscribe for or purchase shares of
Common Stock at a price per share less than the Closing Sale Price per share on
the record date of such dividend or distribution, or

(B)                        a
dividend or distribution of Cash, debt securities (or other evidences of
indebtedness) or other assets (excluding dividends or distributions for which a
Conversion Price adjustment is required to be made under
Section 4.06(a) (i) or (ii) or 4.06(b)) to all or substantially all
holders of Common Stock where the fair market value of such dividend or
distribution per share of Common Stock, together with all other such dividends
and distributions within the preceding twelve months, exceeds 10% of the
Closing Sale Price of the Common Stock as of the Trading Day immediately prior
to the date of declaration for such dividend or distribution,

then the Notes may be surrendered for conversion
beginning on the date the Company gives notice to the Holders of such right, which
shall not be less than 20 days prior to the “ex” date for such dividend or
distribution, until the earlier of 5:00 p.m. (New York City time) on the
Business Day prior to the “ex” date or until the Company announces that such
distribution will not take place;

(iii)                               the Notes may be surrendered for conversion at any
time from or after the date which is 40 days prior to the anticipated effective
time of any Fundamental Change as announced by the Company, which announcement
must occur, to the extent

 14
 

practicable, not
earlier than 70 days nor later than 40 days prior to such anticipated effective
time, until 5:00 p.m. (New York City time) on the second Trading Day
immediately preceding the Fundamental Change Purchase Date;

(iv)                              if the Company consolidates with or
merges with or into another Person or is a party to a binding share exchange or
conveys, transfers, sells, leases or otherwise disposes of all or substantially
all of its properties and assets in each case pursuant to which the Common
Stock would be converted into Cash, securities and/or other property, the Notes
may be surrendered for conversion at any time from or after the date which is
15 days prior to the date announced by the Company as the actual effective date
of the transaction and until and including the date that is 15 days after the
date that is the effective date of such transaction; provided such transaction does not otherwise constitute a
Fundamental Change (to which the provisions of Section 4.01(b)(iii) shall
instead apply) (any such transaction to which this Section 4.01(b)(iv) applies,
a “Transforming Transaction”); the
Company shall notify Holders of Notes at least 20 days prior to the anticipated
effective date of such Transforming Transaction; the Board of Directors shall
determine the anticipated effective date of such Transforming Transaction, and
such determination shall be conclusive and binding on the Holders; and

(v)                                 at any time after December 15, 2011 and
prior to 5:00 p.m. (New York City time) on the Business Day immediately
preceding the Final Maturity Date, the Notes may be surrendered for conversion
regardless of whether any of the foregoing conditions has been satisfied.

(c)                                  The Company, or upon written request, the
Conversion Agent, on behalf of the Company, will determine whether the Notes
are convertible pursuant to the first
paragraph of Section
4.01(a) and clause (i) of Section 4.01(b), and, if so, will notify the Trustee
and the Company in writing; provided, however, that the Conversion Agent shall
have no obligation to determine the Trading Price of the Notes unless the
Company has requested such determination in writing, and the
Company shall have no obligation to make such request unless the Trustee,
acting at the request of one or more Holders holding, in the aggregate, at
least $2,000,000 in principal amount of Notes, provides the Company with
reasonable evidence that the Trading Price of the Notes on any Trading Day
would be less than 97% of the product of the then current Conversion Rate multiplied by the Closing
Sale Price of the Common Stock on that date. 
At such time, the Company shall instruct the Conversion Agent to
determine the Trading Price of the Notes beginning on such Trading Day and on
each successive Trading Day for four consecutive Trading Days.

Section 4.02.                                             Conversion Procedure.

The right to convert any Note may be exercised, if
such Note is represented by a Global Note, by book-entry transfer to the
Conversion Agent (which initially shall be the Trustee) through the facilities
of the Depositary in accordance with the Applicable Procedures or, if such Note
is represented by a Definitive Note, by delivery of such Note at the specified
office of the Conversion Agent, accompanied, in either case, by payment of
any tax or duty, in accordance with Section 4.04, which may be payable in
respect of any transfer involving the issue or delivery of the Common Stock in
the name of a Person other than the Holder of the Note and, if

 15
 

the Note is a Definitive
Note, by: (a) a completed and duly signed conversion notice, in the form
set forth on the reverse of Note attached hereto as Exhibit A (a “Conversion Notice”); (b) if the Note is represented by a
Definitive Note and such Definitive Note has been lost, stolen, destroyed or
mutilated, the evidence regarding the loss, theft, destruction or mutilation of
the Note and other requirements under Section 2.08 of the Base Indenture;
and (c) appropriate endorsements and transfer documents if required by the
Conversion Agent.  The “Conversion Date” shall be the Business Day on which the Holder
satisfies all of the requirements set forth in the immediately preceding
sentence, if all such requirements shall have been satisfied by 11:00 a.m.
(New York City time) on such day, and in all other cases, the Conversion Date shall
be the next succeeding Business Day; however, if a Holder surrenders for
conversion a Note at any time after the 55th Scheduled Trading Day prior to the
Final Maturity Date, the Conversion Date shall be deemed to be the Business Day
immediately preceding the Final Maturity Date. 
Notes may not be submitted for conversion after 5:00 p.m. (New York City
time) on the Business Day immediately prior to the Final Maturity Date.  On the third Business Day following the last
day of the related Conversion Period, subject to Sections 4.05 and 4.13(i), the
Company shall deliver to the Holder through a Conversion Agent a certificate
for the number of whole shares of Common Stock issuable upon the conversion, if
any, and Cash (including Cash in lieu of any fractional shares pursuant to
Section 4.03).

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

The Company initially
appoints the Trustee to act as conversion agent for the Notes (the “Conversion Agent”). Any subsequently named
Conversion Agent shall be appointed as authorized by a Board Resolution.

Section 4.03.                                             Fractional Shares.

The Company will not issue fractional shares of Common
Stock upon conversion of Notes.  In lieu thereof, the Company will deliver
a number of shares of Common Stock equal to the aggregate of the fractional
shares otherwise deliverable for each Trading Day during the Conversion Period
(rounding down to the nearest whole number) and Cash equal to the remainder
multiplied by the Volume Weighted Average Price of the Common Stock on the last
Trading Day of the Conversion Period.

Section 4.04.                                             Taxes on Conversion.

If a Holder converts a Note, the Company shall pay any
documentary, stamp or similar issue or transfer tax due on the issue of shares
of Common Stock upon such conversion.  However, the Holder shall pay any
such tax which is due because the Holder requests the shares to be issued in a
name other than the Holder’s name.  The Conversion Agent may refuse to
deliver the certificate representing the Common Stock being issued in a name
other than the Holder’s name until the Conversion Agent receives a sum
sufficient to pay any tax which will be due because the shares are to be issued
in a name other than the Holder’s name.  Nothing herein shall preclude any
tax withholding required by law or regulation.

 16
 

Section 4.05.                                             Payment Upon Conversion.

(a)                                  Except as otherwise provided in Section
4.13(i), for each $1,000 principal amount of Notes surrendered for conversion
prior to 5:00 p.m. (New York City time) on the 55th Scheduled Trading Day prior
to the Final Maturity Date, the Company shall be required to pay to the Holder
of such Notes the aggregate of the following for each of the 50 Trading Days
beginning on the third Trading Day following the Conversion Date (such 50
Trading Day period, a “Conversion Period”):

(i)                                     if the Daily Conversion Value for such
Trading Day for each $1,000 aggregate principal amount of Notes exceeds $20.00,
(1) a Cash payment of $20.00 and (2) the remaining Daily Conversion
Value (the “Daily Net Share Settlement Value”) as
provided in Section 4.05(c); or

(ii)                                  if the Daily Conversion Value for such
Trading Day for each $1,000 aggregate principal amount of Notes is less than or
equal to $20.00, a Cash payment equal to the Daily Conversion Value.

(b)                                 Except as otherwise provided in Section
4.13(i), if a Holder surrenders a Note for conversion at any time after the
55th Scheduled Trading Day immediately preceding the Final Maturity Date and on
or prior to 5:00 p.m. (New York City time) on the Business Day immediately
preceding the Final Maturity Date, (1) the Conversion Date will be deemed
to be the Business Day immediately preceding the Final Maturity Date,
(2) the Conversion Period for such Note will commence on the 51st
Scheduled Trading Day immediately prior to the Final Maturity Date, (3) the
Company shall be required to pay to the Holder thereof $1,000 in Cash on the
Final Maturity Date for each $1,000 principal amount of Notes surrendered for
conversion, and (4) the Company shall be required to deliver the Residual
Amount, if any, to such Holder on the third Business Day following the last
Trading Day of the Conversion Period in shares of Common Stock, subject to the
Company’s right to deliver Cash in lieu of all or a portion of such shares of
Common Stock in accordance with Section 4.05(c).

(c)                                  The Company may elect to deliver Cash in
respect of part or all of the Residual Amount for Notes that are converted; provided, however, that such election
shall apply only to conversions with a Conversion Period beginning after the
Company has (x) given notice to the Holders of the Notes and the Trustee
pursuant to the provisions of this Indenture of such election and of the
percentage (the “Cash Percentage”)
of Residual Amounts that the Company elects to deliver in Cash, (y) issued a
press release describing such election and specifying the Cash Percentage and
(z) made such press release or the information that it contains available on
the Company’s website.  For each $1,000
principal amount of Notes surrendered for conversion:

(i)                                     if the Company does not elect to deliver
Cash in respect of part or all of the Residual Amount, the Company shall
deliver a number of shares of Common Stock determined by dividing the Daily Net
Share Settlement Value by the Volume Weighted Average Price for each Trading
Day within the Conversion Period and summing the resulting share amounts.

 17
 

(ii)                                  if the Company elects to deliver Cash in
respect of part or all of the Residual Amount for such Notes, the Company shall
deliver the aggregate of the following for each of the 50 Trading Days during
the Conversion Period:

(A)                                                                              Cash in an amount equal to the product of
(1) the Cash Percentage and (2) the Daily Net Share Settlement Value; and

(B)                                                                                shares of Common Stock in an amount equal
to the product of (1) 100% minus the Cash Percentage and (2) the Daily Net
Share Settlement Value for such Trading Day divided by the Volume Weighted
Average Price for such Trading Day.

(d)                                 The Company shall, prior to the issuance
of any Notes hereunder, and from time to time as may be necessary, reserve at
all times and keep available, free from preemptive rights, out of its
authorized but unissued Common Stock, a sufficient number of shares of Common
Stock deliverable upon conversion of all of the Notes.

(e)                                  All shares of Common Stock that may be
issued upon conversion of the Notes shall be duly authorized, validly issued,
fully paid and nonassessable and shall be free of any preemptive rights and
free of any lien or adverse claim.

(f)                                    The Company shall endeavor to comply with
all applicable securities laws regulating the offer and delivery of any Common
Stock upon conversion of Notes and shall list or cause to have quoted such
shares of Common Stock on each national securities exchange on which the Common
Stock is then listed or quoted.

(g)                                 Each converting Holder shall be treated
by the Company as a shareholder of record with respect to shares deliverable
under Section 4.05(c) from and after 5:00 p.m. (New York City time) on the
related Conversion Date.

(h)                                 Notwithstanding anything herein to the
contrary, nothing herein shall give to any Holder any rights as a creditor in
respect of its right to conversion.

Section 4.06.                                             Adjustment of
Conversion Price.

The conversion price as stated in paragraph 6 of the
Notes (the “Conversion Price”) shall be adjusted from
time to time by the Company as follows:

(a)                                  In case the Company shall (i) pay a
dividend on its Common Stock in shares of Common Stock, (ii) make a
distribution on its Common Stock in shares of Common Stock,
(iii) subdivide its outstanding Common Stock into a greater number of
shares, or (iv) combine its outstanding Common Stock into a smaller number
of shares, the Conversion Price in effect immediately prior thereto shall be
adjusted so that the Holder of any Note thereafter surrendered for conversion
shall be entitled to receive that number of shares of Common Stock which it
would have owned had such Note been converted immediately prior to the record
date of such event or the happening of such event (assuming such Note were
convertible solely into shares of Common Stock, based on the relevant
Conversion Price, rather than Cash or Cash and Common Stock as set forth in
Section 4.05).  An adjustment made pursuant to this
subsection (a) shall

 18
 

become effective on the “ex”
date in the case of a dividend or distribution and shall become effective
immediately after the effective date in the case of subdivision or
combination.  If any dividend or
distribution of the type described in this Section 4.06(a) is declared but not
actually paid or made, the Conversion Price shall again be adjusted to the
Conversion Price that would have been in effect if such dividend or
distribution had not been declared.

(b)                                 In case the Company shall issue rights or
warrants to all or substantially all holders of its Common Stock entitling them
for a period of not more than 60 days to subscribe for or purchase shares of
Common Stock (or securities convertible into Common Stock) at a price per share
(or having a conversion price per share) less than the Closing Sale Price per
share of Common Stock on the Trading Day immediately preceding the “ex” date for
such issuance, the Conversion Price shall be adjusted so that the Conversion
Price on the “ex” date shall equal the price determined by multiplying the
Conversion Price in effect immediately prior to such “ex” date by a fraction of
which the numerator shall be the number of shares of Common Stock outstanding
immediately prior to such “ex” date plus the number of shares which the
aggregate offering price of the total number of shares of Common Stock so
offered (or the aggregate conversion price of the convertible securities so
offered, which shall be determined by multiplying the number of shares of
Common Stock issuable upon conversion of such convertible securities by the
conversion price per share of Common Stock pursuant to the terms of such
convertible securities) would purchase at the Closing Sale Price per share of
Common Stock on the Trading Day immediately preceding such “ex” date, and of
which the denominator shall be the number of shares of Common Stock outstanding
on such record date plus the number of additional shares of Common Stock
offered (or into which the convertible securities so offered are
convertible).  Such adjustment shall be made successively whenever any
such rights or warrants are issued and shall become effective on such “ex” date. 
If at the end of the period during which such rights or warrants are
exercisable not all rights or warrants shall have been exercised or
distributed, the adjusted Conversion Price shall be immediately readjusted to
what it would have been based upon the number of additional shares of Common
Stock actually issued (or the number of shares of Common Stock issuable upon
conversion of convertible securities actually issued).

(c)                                  In case the Company shall distribute to
all or substantially all holders of its Common Stock any shares of Capital
Stock of the Company (other than Common Stock), evidences of indebtedness or
other non-Cash assets (including securities of any person other than the
Company but excluding (1) dividends or distributions paid exclusively in
Cash referred to in subsection (d) of this Section 4.06 or (2) dividends
or distributions referred to in subsection (a) of this Section 4.06),
or shall distribute to all or substantially all holders of its Common Stock
rights or warrants to subscribe for or purchase any of its securities
(excluding those rights and warrants referred to in subsection (b) of
this Section 4.06 and also excluding the distribution of rights to all or
substantially all holders of Common Stock pursuant to the adoption of a stockholder
rights plan or the detachment of such rights under the terms of such
stockholder rights plan), then in each such case the Conversion Price shall be
adjusted so that the Conversion Price on the “ex” date for such distribution
shall equal the price determined by multiplying the current Conversion Price by
a fraction of which the numerator shall be the Closing Sale Price per share of
the Common Stock on the Trading Day immediately preceding such “ex” date less
the fair market value on such Trading Day (as determined by the Board of
Directors, whose determination shall be conclusive evidence of such fair market
value and which shall be

 19
 

evidenced by an Officers’
Certificate delivered to the Trustee and the Conversion Agent) of the portion
of the Capital Stock, evidences of indebtedness or other non-Cash assets so
distributed or of such rights or warrants applicable to one share of Common
Stock (determined on the basis of the number of shares of Common Stock
outstanding on the Trading Day immediately preceding such “ex” date), and of
which the denominator shall be the Closing Sale Price per share of the Common
Stock on the Trading Day immediately preceding such “ex” date.  Such
adjustment shall be made successively whenever any such distribution is made
and shall become effective immediately after the record date for the
determination of shareholders entitled to receive such distribution.

In the event the then fair market value (as so
determined) of the portion of the Capital Stock, evidences of indebtedness or
other non-Cash assets so distributed or of such rights or warrants applicable
to one share of Common Stock is equal to or greater than the Closing Sale Price
per share of the Common Stock on the Trading Day immediately preceding such “ex”
date, in lieu of the foregoing adjustment, adequate provision shall be made so
that each holder of a Note shall have the right to receive upon conversion the
amount of Capital Stock, evidences of indebtedness or other non-Cash assets so
distributed or of such rights or warrants such holder would have received had
such holder converted each Note immediately prior to the record date for such
distribution.  In the event that such dividend or distribution is not so
paid or made, the Conversion Price shall again be adjusted to be the Conversion
Price which would then be in effect if such dividend or distribution had not
been declared.  If the Board of Directors determines the fair market value
of any distribution for purposes of this Section 4.06(c) by reference to
the actual or when issued trading market for any securities, it must in doing
so consider the prices in such market over the same period used in computing
the Closing Sale Price of the Common Stock.

To the extent the Company has a preferred shares
rights plan (“Rights Plan”), in effect upon conversion
of the Notes into Common Stock, the Holders of Notes will receive, in addition
to the Common Stock, the rights described therein (whether or not the rights
have separated from the Common Stock at the time of conversion), subject to the
limitations set forth in the Rights Plan.  Any distribution of rights or
warrants pursuant to a Rights Plan complying with the requirements set forth in
the immediately preceding sentence of this paragraph shall not constitute a
distribution of rights or warrants pursuant to this Section 4.06(c).

Rights or warrants distributed by the Company to all
or substantially all holders of Common Stock entitling the holders thereof to
subscribe for or purchase shares of the Company’s Capital Stock (either
initially or under certain circumstances), which rights or warrants, until the
occurrence of a specified event or events (“Trigger
Event”):  (i) are deemed to be transferred with such
shares of Common Stock; (ii) are not exercisable; and (iii) are also
issued in respect of future issuances of Common Stock, shall be deemed not to
have been distributed for purposes of this Section 4.06 (and no adjustment to
the Conversion Price under this Section 4.06 will be required) until the
occurrence of the earliest Trigger Event, whereupon such rights and warrants
shall be deemed to have been distributed and an appropriate adjustment (if any
is required) to the Conversion Price shall be made under this Section
4.06(c).  If any such right or warrant, including any such existing rights
or warrants distributed prior to the date of this First Supplemental Indenture,
are subject to events, upon the occurrence of which such rights or warrants
become exercisable to purchase different securities, evidences of indebtedness
or other

 20
 

assets, then the date of
the occurrence of any and each such event shall be deemed to be the date of
distribution and record date with respect to new rights or warrants with such
rights (and a termination or expiration of the existing rights or warrants
without exercise by any of the holders thereof).  In addition, in the
event of any distribution (or deemed distribution) of rights or warrants, or
any Trigger Event or other event (of the type described in the preceding
sentence) with respect thereto that was counted for purposes of calculating a
distribution amount for which an adjustment to the Conversion Price under this
Section 4.06 was made, (1) in the case of any such rights or warrants
which shall all have been redeemed or repurchased without exercise by any
holders thereof, the Conversion Price shall be readjusted upon such final
redemption or repurchase to give effect to such distribution or Trigger Event,
as the case may be, as though it were a Cash distribution, equal to the per
share redemption or repurchase price received by a holder or holders of Common
Stock with respect to such rights or warrants (assuming such holder had
retained such rights or warrants), made to all holders of Common Stock as of
the date of such redemption or repurchase, and (2) in the case of such
rights or warrants which shall have expired or been terminated without exercise
by any holders thereof, the Conversion Price shall be readjusted as if such
rights and warrants had not been issued.

(d)                                 In case the Company shall, by dividend or
otherwise, at any time distribute (a “Triggering Distribution”)
to all or substantially all holders of its Common Stock Cash dividends and
other Cash distributions (other than (x) distributions described in Section
4.06(e) below or (y) any dividend or distribution in
connection with liquidation, dissolution or winding up), the Conversion Price
shall be reduced so that the same shall equal the price determined by
multiplying such Conversion Price in effect on the Trading Day immediately preceding
the “ex” date with respect to such Cash dividend or distribution by a fraction
of which the numerator shall be the Closing Sale Price per share of the Common
Stock as of the Trading Day immediately preceding the “ex” date with respect to
the dividend or distribution less the amount of the dividend or distribution,
and the denominator shall be such Closing Sale Price per share of the Common
Stock as of the Trading Day immediately preceding the “ex” date with respect to
the dividend or distribution.  Such
decrease shall become effective immediately prior to the opening of business on
the “ex” date for such dividend or distribution; provided, however, that,
in the event the portion of the Triggering Distribution applicable to one share
of Common Stock is equal to or greater than the Closing Sale Price on such
record date, in lieu of the foregoing adjustment, adequate provision shall be
made so that each Holder shall have the right to receive upon conversion the
amount of Cash such Holder would have received had such Holder converted each
Note immediately prior to the record date for such dividend or
distribution.  In the event that such dividend or distribution is not so
paid or made, the Conversion Price shall again be adjusted to be the Conversion
Price that would then be in effect if such dividend or distribution had not
been declared.

(e)                                  In case any tender offer made by the
Company or any of its Subsidiaries for Common Stock shall expire and such
tender offer (as amended upon the expiration thereof) shall involve the payment
of aggregate consideration in an amount (determined as the sum of the aggregate
amount of Cash consideration and the aggregate fair market value (as determined
by the Board of Directors, whose determination shall be conclusive evidence
thereof and which shall be evidenced by an Officers’ Certificate delivered to
the Trustee and the Conversion Agent thereof) of any other consideration) that
exceeds an amount equal to the Closing Sale Price per share of Common Stock as
of the last date (the “Expiration Date”) tenders
could have been

 21
 

made pursuant to such
tender offer (as it may be amended) (the last time at which such tenders could
have been made on the Expiration Date is hereinafter called the “Expiration Time”), then, immediately prior to the opening of business
on the day after the Expiration Date, the Conversion Price shall be reduced so
that the same shall equal the price determined by multiplying the Conversion
Price in effect immediately prior to 5:00 p.m. (New York City time) on the
Expiration Date by a fraction of which the numerator shall be the product of
the number of shares of Common Stock outstanding (including tendered shares but
excluding any shares held in the treasury of the Company) immediately before
the Expiration Time multiplied by the Closing Sale Price per share of the
Common Stock on the Trading Day next succeeding the Expiration Date and the
denominator shall be the sum of (x) the aggregate consideration (determined as
aforesaid) payable to stockholders based on the acceptance (up to any maximum
specified in the terms of the tender offer) of all shares validly tendered and
not withdrawn as of the Expiration Time (the shares deemed so accepted, up to
any such maximum, being referred to as the “Purchased Shares”) and
(y) the product of the number of shares of Common Stock outstanding (less any
Purchased Shares and excluding any shares held in the treasury of the Company)
immediately after the Expiration Time and the Closing Sale Price per share of
Common Stock on the Trading Day next succeeding the Expiration Date.  In
the event that the Company is obligated to purchase shares pursuant to any such
tender offer, but the Company is permanently prevented by applicable law from
effecting any or all such purchases or any or all such purchases are rescinded,
the Conversion Price shall again be adjusted to be the Conversion Price which
would have been in effect based upon the number of shares actually
purchased.  If the application of this Section 4.06(e) to any tender
offer would result in an increase in the Conversion Price, no adjustment shall
be made for such tender offer under this Section 4.06(e).

For purposes of this
Section 4.06(e), the term “tender offer” shall mean and include both tender
offers and exchange offers, all references to “purchases” of shares in tender
offers (and all similar references) shall mean and include both the purchase of
shares in tender offers and the acquisition of shares pursuant to exchange
offers, and all references to “tendered shares” (and all similar references)
shall mean and include shares tendered in both tender offers and exchange
offers.

(f)                                    In case the Company or any of its
Subsidiaries shall make a payment in respect of a purchase by it of Common
Stock, the consideration for which exceeds the average of the Closing Sale
Prices of the Common Stock for the five consecutive Trading Days ending on the
date of such purchase (the amount of such excess, the “Purchase Premium”), which purchase,
together with any other purchases of Common Stock by the Company or any of its
Subsidiaries involving a Purchase Premium concluded within the preceding 12
months not previously reflected in a Conversion Price adjustment, results in
the payment of aggregate consideration exceeding an amount equal to 10% of the
Closing Sale Price of the Common Stock as of the Trading Day next succeeding
the date of such purchase multiplied by the number of shares of Common Stock of
the Company outstanding on such Trading Day (excluding treasury stock), the
Conversion Price shall be reduced so that so that the same shall equal the
price determined by multiplying the Conversion Price in effect immediately
prior to 5:00 p.m. (New York City time) on the Trading Day immediately
preceding the date of such purchase by a fraction of which the numerator shall
be (x) the Opening Sale Price of the Common Stock on the Trading Day next
succeeding the date of such purchase, minus (y) the quotient of (i) the
aggregate amount of all Purchase Premiums paid in connection with such purchases
within the preceding 12 months not

 22
 

previously reflected in a
Conversion Price adjustment and (ii) the number of shares of Common Stock
outstanding on the Trading Day next succeeding the date of such purchase
(excluding treasury stock), as determined by the Company’s board of directors,
and the denominator shall be the Opening Sale Price of the Common Stock on the
Trading Day next succeeding the date of such purchase; provided that the purchases of Common
Stock effected by the Company or its agent in conformity with Rule 10b-18 under
the Exchange Act (or any successor provision) will not be included in any
adjustment to the conversion rate made under this Section 4.06(f).

If a payment would cause an adjustment to the
conversion rate under both Section 4.06(e) and Section 4.06(f), the provisions
of the Section 4.06(f) shall control.

(g)                                 In any case in which this Section 4.06
shall require that an adjustment be made following an “ex” date or Expiration
Date, as the case may be, established for purposes of this Section 4.06, the
Company may elect to defer (but only until five Business Days following the
filing by the Company with the Trustee of the certificate described in Section
4.10) issuing to the Holder of any Note converted after such “ex” date or
Expiration Date the shares of Common Stock and other Capital Stock of the
Company issuable upon such conversion over and above the shares of Common Stock
and other Capital Stock of the Company issuable, or Cash payable, upon such
conversion only on the basis of the Conversion Price prior to adjustment; and,
in lieu of the shares the issuance of which, or Cash the payment of which, is
so deferred, the Company shall issue or cause its transfer agents to issue due
bills or other appropriate evidence prepared by the Company of the right to
receive such shares or Cash, as the case may be.  If any distribution in
respect of which an adjustment to the Conversion Price is required to be made
as of the “ex” date or Expiration Date therefor is not thereafter made or paid
by the Company for any reason, the Conversion Price shall be readjusted to the
Conversion Price which would then be in effect if such “ex” date had not been
fixed or such Expiration Date had not occurred.

For the avoidance of doubt, any adjustments to the conversion
rate pursuant to this Section shall be made through the date on which payment
pursuant to Section 4.05 is made (without regard to the intervening occurrence
of the Final Maturity Date, should that occur).

Section 4.07.                                             No Adjustment.

Notwithstanding the provisions of Section 4.06, no
adjustment in the Conversion Price shall be required unless the adjustment
would result in a change of at least 1% in the Conversion Price as last
adjusted; provided, however, that any adjustments
which by reason of this Section 4.07 are not required to be made shall be
carried forward and taken into account in any subsequent adjustment, and the
Company shall make such carried forward adjustments, regardless of whether the
aggregate adjustment is less than 1%, within one year of the first such
adjustment carried forward, upon required purchases of the Notes in connection
with a Fundamental Change and five Business Days prior to the Final Maturity
Date.  All calculations under this Article IV shall be made to the
nearest one-tenth cent or to the nearest one-ten-thousandth of a share, as the
case may be.

Except as otherwise provided herein, no adjustment
need be made for (i) issuances of Common Stock pursuant to a Company plan for
reinvestment of dividends or interest and the investment of additional optional
amounts in Common Stock under any plan, (ii) for a change in

 23
 

the par value or a change
to no par value of the Common Stock, (iii) issuances of Common Stock or options
or rights to purchase Common Stock pursuant to any present or future employee,
director or consultant benefit plan or program of or assumed by the Company or
any of the Company’s subsidiaries, (iv) issuances of Common Stock pursuant to
any option, warrant, right or exercisable, exchangeable or convertible security
not described in (iii) of this paragraph and outstanding as of the date the
Notes are first issued or (v) accrued and unpaid interest and additional
interest, if any, on the Notes that are converted.

To the extent that the Notes become convertible into
the right to receive Cash, no adjustment need be made thereafter as to the
Cash.  Interest will not accrue on the
Cash.

Section 4.08.                                             Adjustment for Tax
Purposes.

The Company shall be entitled to make such reductions
in the Conversion Price, for the remaining term of the Notes or any shorter
term, in addition to those required by Section 4.06, as the Board of Directors
may determine to be advisable in order to avoid or diminish any tax to any
holders of shares of Common Stock or rights to purchase Common Stock resulting
from any stock dividends, subdivisions of shares, distributions of rights or
warrants to purchase or subscribe for stock or securities, distributions of
securities convertible into or exchangeable for stock hereafter made by the
Company to its stockholders or from any event treated as such for income tax
purposes.

Section 4.09.                                             Temporary Reduction of
Conversion Price.

To the extent permitted by applicable law and rules of
any stock exchange on which the Common Stock is then listed, the Company from
time to time may reduce the Conversion Price by any amount for any period of
time if the period is at least 20 Business Days, the reduction is irrevocable
during such period, and the Board of Directors shall have made a determination
that such reduction would be in the best interest of the Company.  Whenever the Conversion Price is reduced
pursuant to the preceding sentence, the Company shall provide notice of any
reduction in the Conversion Price to the Holders in the manner provided in
Section 11.02 of the Base Indenture, with a copy to the Trustee and Conversion
Agent, at least 15 days prior to the date such reduced Conversion Price takes
effect, and such notice shall state the reduced Conversion Price and the period
during which it will be in effect.

Section 4.10.                                             Notice of Certain
Transactions.  In the event that (1) the Company is required to adjust the
Conversion Price; (2) the Company consolidates or merges with, or transfers all
or substantially all of its property and assets to, another corporation and
shareholders of the Company must approve the transaction; or (3) there is a
dissolution or liquidation of the Company, the Company shall mail to Holders
and file with the Trustee a notice stating the proposed record or effective
date, as the case may be, and mail the notice at least 10 days before such
date; provided, further, that
upon occurrence of an event referred to in clause (1) of this Section 4.10, the
Company shall file with the Trustee (and deliver a copy to the Conversion
Agent) an Officers’ Certificate briefly stating the facts requiring the
adjustment and the manner of computing it and promptly mail to Holders a notice
of the adjustment.  Failure to mail such
notice or any defect therein shall not affect the validity of any transaction
referred to in clause (1), (2) or (3) of this Section 4.10; provided, however, that unless and until
the Trustee and the

 24

Conversion Agent shall
have received an Officers’ Certificate setting forth an adjustment of the
Conversion Price in connection with the event referred to in clause (1), the
Trustee may assume without inquiry that the Conversion Price has not been
adjusted and that the last Conversion Price of which it has knowledge remains
in effect.

Section 4.11.               Effect of Reclassification,
Consolidation, Merger or Sale on Conversion Privilege. 
If any of the following shall occur, namely:  (a) any
reclassification or change of shares of Common Stock issuable upon conversion
of the Notes (other than a change in par value, or from par value to no par
value, or from no par value to par value, or as a result of a subdivision or
combination, or any other change for which an adjustment is provided in Section
4.06); (b) any consolidation or merger or combination to which the Company
is a party other than a merger in which the Company is the continuing
corporation and which does not result in any reclassification of, or change (other
than in par value, or from par value to no par value, or from no par value to
par value, or as a result of a subdivision or combination) in, outstanding
shares of Common Stock; or (c) any sale or conveyance as an entirety or
substantially as an entirety of the property and assets of the Company,
directly or indirectly, to any Person, then the Company, or such successor,
purchasing or transferee corporation, as the case may be, shall, as a condition
precedent to such reclassification, change, combination, consolidation, merger,
sale or conveyance, execute and deliver to the Trustee a supplemental indenture
providing that following the related effective date, the Holder of each Note
then outstanding shall have the right to convert such Note into Cash and, with
respect to the Residual Amount, the kind and amount of shares of stock and
other securities and property (including Cash) receivable upon such
reclassification, change, combination, consolidation, merger, sale or
conveyance by a holder of the number of shares of Common Stock deliverable upon
conversion of such Note immediately prior to such reclassification, change,
combination, consolidation, merger, sale or conveyance (the “Reference Property”).  References in
this Indenture to the Common Stock shall, following the effective date of such
reclassification, change, combination, consolidation, merger, sale or
conveyance be deemed to be references to the Reference Property.  Such supplemental indenture shall provide for
adjustments of the Conversion Price that shall be as nearly equivalent as may
be practicable to the adjustments of the Conversion Price provided for in this
Article IV.  If, in the case of any such consolidation, merger,
combination, sale or conveyance, the stock or other securities and property
(including Cash) receivable thereupon by a holder of Common Stock include
shares of stock or other securities and property of a person other than the
successor, purchasing or transferee corporation, as the case may be, in such
consolidation, merger, combination, sale or conveyance, then such supplemental
indenture shall also be executed by such other person and shall contain such
additional provisions to protect the interests of the Holders of the Notes as
the Board of Directors shall reasonably consider necessary by reason of the
foregoing.  The provisions of this Section 4.11 shall similarly apply to
successive reclassifications, changes, combinations, consolidations, mergers,
sales or conveyances.  The Trustee has no
duty to determine whether a supplemental indenture under this Section 4.11 need
be entered into.

In the event the Company shall execute a supplemental
indenture pursuant to this Section 4.11, the Company shall promptly file with
the Trustee (x) an Officers’ Certificate briefly stating the reasons therefor,
the kind or amount of shares of stock or other securities or property
(including Cash) receivable by Holders of the Notes upon the conversion of
their Notes after any such reclassification, change, combination,
consolidation, merger, sale or conveyance, any

 25
 

adjustment to be made
with respect thereto and that all conditions precedent have been complied with
and (y) an Opinion of Counsel that all conditions precedent have been complied
with, and shall promptly mail notice of such supplemental indenture to all
Holders.

In the event that holders of the Common Stock have the
right to elect the form of consideration to be received in connection with such
reclassification, change, combination, consolidation, merger, sale or
conveyance, the Company shall make adequate provision so that the Holders,
treated as a single class, have the timely opportunity to determine the
composition of the Reference Property. 
The Reference Property shall be based on the blended, weighted average
of elections made by Holders and will be subject to any limitations applicable
to all holders of Common Stock (such as pro rata reductions made to any portion
of the consideration payable).  The
determination of the Reference Property shall apply to all of the outstanding Notes
and the Company shall notify the Trustee of the composition of the Reference
Property after it is determined.

Section 4.12.               Disclaimer. 
Neither the Trustee nor any Conversion Agent (other than the Company or
an Affiliate of the Company) shall have any duty to determine when an
adjustment under this Article IV should be made, how it should be made or
what such adjustment should be, but may accept as conclusive evidence of that
fact or the correctness of any such adjustment, and shall be protected in relying
upon, an Officers’ Certificate, including the Officers’ Certificate with
respect thereto, which the Company is obligated to file with the Trustee (and
to deliver a copy thereof to the Conversion Agent) pursuant to Section
4.10.  Neither the Trustee nor any Conversion Agent (other than the
Company or an Affiliate of the Company) makes any representation as to the
validity or value of any securities or assets issued upon conversion of Notes,
and neither shall be responsible for the Company’s failure to comply with any
provisions of this Article IV.

The Trustee shall not be under any responsibility to
determine the correctness of any provisions contained in any supplemental
indenture executed pursuant to Section 4.11, but may accept as conclusive
evidence of the correctness thereof, and shall be fully protected in relying
upon, the Officers’ Certificate and Opinion of Counsel with respect thereto
which the Company is obligated to file with the Trustee pursuant to Section
4.11.

Notwithstanding anything to the contrary contained in
this Article IV, for so long as the Trustee is also acting as Conversion Agent,
no copies of any notice provided to the Trustee shall be required to be
separately provided to the Conversion Agent.

Section 4.13.               Additional Shares.

(a)           If a Holder elects to convert its Notes pursuant to
Section 4.01(b)(iii) in connection with a Qualifying Fundamental Change that
occurs prior to the Final Maturity Date, the Conversion Rate of the Notes being
converted by such Holder at that time shall be increased by an additional
number of shares of Common Stock (the “Additional
Shares”) determined by reference to the table attached as Schedule
4.13 hereto.  For the avoidance of doubt,
the adjustment provided for in this Section 4.13 shall be made only with
respect to the Notes converted in connection with such Qualifying Fundamental
Change and shall not be effective as to any Notes not so converted.  Conversion of a given Note shall be
considered to be “in

 26
 

connection with” a given
Fundamental Change if that Note is surrendered for conversion during the
conversion period provided for in respect of such Fundamental Change pursuant
to Section 4.01(b)(iii).  The adjustment
provided for in this Section 4.13 shall be made only if the Qualifying
Fundamental Change actually occurs or becomes effective.

(b)           For purposes of determining the applicable number of
Additional Shares pursuant to Schedule 4.13:

(i)            “Effective
Date”  shall mean the
date the Qualifying Fundamental Change occurs or becomes effective; and

(ii)           “Stock
Price”  shall mean:

(x)            in the case of a Qualifying Fundamental Change
described in clause (ii) of the definition of Change in Control, the price paid
per share of Common Stock in the Change in Control, unless the holders of
Common Stock receive only Cash in such Qualifying Fundamental Change, in which
event “Stock Price” shall mean the Cash amount paid per share;

(y)           in the case of any other Qualifying Fundamental Change
described in the definition of Change in Control, the average of the last reported
Closing Sale Prices of Common Stock over the five consecutive Trading Day
period ending on the Trading Day preceding the Effective Date of such
Qualifying Fundamental Change.

(c)           If the Stock Price is between two Stock Price amounts
in the table attached as Schedule 4.13 hereto, the number of Additional Shares
shall be determined by a straight-line interpolation between the number of
Additional Shares set forth for the higher and lower Stock Price amounts, based
on a 365-day year.

(d)           If the Effective Date falls between two Effective
Dates in the table attached as Schedule 4.13 hereto, the number of Additional
Shares shall be determined by a straight-line interpolation between the number
of Additional Shares set forth for the two dates, based on a 365-day year.

(e)           No increase in the Conversion Rate shall be made
pursuant to this Section 4.13 if the Stock Price (i) exceeds $35.00 per share
(subject to adjustment) or (ii) is less than $5.54 per share (subject to
adjustment).

(f)            The Stock Price figures set forth in the first row of
the table (i.e., column headers) in Schedule 4.13 hereto shall be adjusted as
of any date on which the Conversion Price of the Notes is adjusted pursuant to
Section 4.06.  The adjusted Stock Price
figures shall equal the Stock Price figures applicable immediately prior to
such adjustment, multiplied by a fraction, the numerator of which is the
Conversion Price as so adjusted and the denominator of which is the Conversion
Price immediately prior to the adjustment giving rise to the Stock Price figure
adjustment.  The number of Additional
Shares indicated in the table shall be adjusted by the

 27
 

inverse application of
the adjustment factor applied to the Conversion Price pursuant to Section 4.06.

(g)           In no event shall the Conversion Rate be increased by
more than 23.54 shares per $1,000 principal amount of Notes (the “Maximum Adjusted Conversion Rate”) pursuant
to the events described in this Section 4.13. 
The Maximum Adjusted Conversion Rate shall be subject to adjustments by
the inverse application of the adjustment factor applied to the Conversion
Price pursuant to Section 4.06.

(h)           The Company will notify Holders of the anticipated
Effective Date of a Qualifying Fundamental Change and issue a press release as
soon as practicable after the Company first determines the anticipated
Effective Date of such Qualifying Fundamental Change.

(i)            Notwithstanding the provisions of Section 4.02, if a
Holder surrenders the Notes for conversion in connection with a Qualifying
Fundamental Change, the Company will deliver the portion of the conversion
consideration that is payable on account of the increase in the Conversion Rate
pursuant to this Section 4.13 on the third Business Day after the later of (i)
the date the Holder surrenders the Notes for conversion; (ii) the last Trading
Day in the applicable Conversion Period; and (iii) the Effective Date of the
Qualifying Fundamental Change.

Section 4.14.               Limitation on Adjustments.

(a)           The Company shall not take any action that would
result in an adjustment pursuant to the foregoing provisions in this Article IV
without complying with the rules of any stock exchange on which the Common
Stock is then listed.

(b)           The Company shall not take any action that would
result in an adjustment pursuant to the foregoing provisions in this Article IV
if that adjustment would reduce the Conversion Price below the then par value
of the shares of Common Stock issuable upon conversion of the Notes.

Article V

Subordination of Notes

Section 5.01.          Agreement to Subordinate. 
The Company agrees, and each Holder by accepting a Note agrees, that the
indebtedness evidenced by the Notes is subordinated in right of payment, to the
extent and in the manner provided in this Article V, to the prior payment
in full, in Cash or Cash equivalents, of all existing and future Senior
Indebtedness of the Company and that the subordination is for the benefit of
and enforceable by the holders of such Senior Indebtedness.  Only Senior Indebtedness of the Company shall
rank senior to the Notes in accordance with the provisions set forth
herein.  The Notes shall in all respects
rank pari passu with all other
existing and future Senior Subordinated indebtedness of the Company and will be
senior in right of payment to all of the Company’s future obligations that may
be designated subordinate to the Notes. 
All provisions of this Article V shall be subject to Section 5.12.

 28
 

Section 5.02.          Liquidation, Dissolution, Bankruptcy. 
Upon any payment or distribution of the assets of the Company to
creditors upon a total or partial dissolution, winding-up, liquidation or
reorganization of the Company, in a bankruptcy, reorganization, insolvency,
receivership or similar proceeding relating to the Company or its property, an
assignment by the Company for the benefit of its creditors or the marshaling of
the assets and liabilities of the Company, holders of Senior Indebtedness of
the Company shall be entitled to receive payment in full of all Obligations due
in respect thereof before Holders shall be entitled to receive any payment of
principal of or interest on the Notes, except
that Holders may receive Capital Stock and debt obligations that are
subordinated to the Senior Indebtedness to substantially the same extent or to
a greater extent as the Notes are so subordinated.

Section 5.03.          Default on Designated
Senior Indebtedness of the Company.

(a)           The Company may not pay the principal of or interest
on the Notes, may not repurchase, redeem or otherwise retire any Notes and may
not make any payments of Cash upon conversion, if:

(i)            a payment default on Designated Senior
Indebtedness of the Company occurs and is continuing beyond any applicable
grace period (a “Payment Default”);
or

(ii)           any other default occurs and is
continuing on Designated Senior Indebtedness of the Company that permits the
holders thereof to accelerate its maturity and the Trustee receives a notice of
that default (a “Payment Blockage Notice”)
from the Company or the holders of such Designated Senior Indebtedness (a “Non-Payment Default”).

(b)           Payments on the Notes may and shall be resumed:

(i)            in the case of a Payment Default, upon
the date on which it is cured or waived or ceases to exist; and

(ii)           in case of a Non-Payment Default, the
earlier of the date on which such Non-Payment Default is cured or waived or
ceases to exist, in each case as and to the extent permitted under the
documentation for the Designated Senior Indebtedness, or 179 days after the
date on which such Payment Blockage Notice is received, unless the maturity of
the relevant Designated Senior Indebtedness of the Company has been
accelerated, in which case (i) above shall become applicable.

(c)           No new Payment Blockage Notice may be delivered unless
and until 365 days have elapsed since the effectiveness of the immediately
prior Payment Blockage Notice.

(d)           No default that existed or was continuing on the date
of the delivery of any Payment Blockage Notice with respect to the Designated
Senior Indebtedness whose holders delivered the Payment Blockage Notice may be
made the basis of a subsequent Payment Blockage Notice by the holders of such
Designated Senior Indebtedness, whether or not within a period of 365
consecutive days, unless the default has been cured or waived for a period of
not less than 90 consecutive days.

 29
 

Section 5.04.          Acceleration of Payment of Notes. 
If payment of the Notes is accelerated because of an Event of Default,
the Company shall promptly notify the holders of the Designated Senior
Indebtedness of the Company (or their Representative or the trustee(s) for the
Designated Senior Indebtedness) of the acceleration.

Section 5.05.          When Distribution Must Be Paid Over. 
If a payment or distribution of the Company’s assets of any kind is made
to Holders that because of this Article V should not have been made to
them, the Holders who receive the distribution shall hold it in trust for
holders of Senior Indebtedness of the Company and immediately pay it over or
deliver it to them or their representatives to the extent necessary to make
payment in full of all Senior Indebtedness remaining unpaid, after giving
effect to any concurrent payment or distribution, or provision therefor, to or
for the holders of Senior Indebtedness.

Section 5.06.          Subrogation. 
After all Senior Indebtedness of the Company is paid in full and until
the Notes are paid in full, Holders shall be subrogated to the rights of
holders of such Senior Indebtedness to receive distributions applicable to such
Senior Indebtedness.  A distribution made
under this Article V to holders of such Senior Indebtedness which
otherwise would have been made to Holders is not, as between the Company and
Holders, a payment by the Company on such Senior Indebtedness.

Section 5.07.          Relative Rights. 
This Article V defines the relative rights of Holders and holders
of Senior Indebtedness of the Company. 
Nothing in this Indenture shall:

(i)            impair, as between the Company and
Holders, the obligation of the Company, which is absolute and unconditional, to
pay its obligations in respect of this Indenture and the Notes in accordance
with their terms; or

(ii)           prevent the Trustee or any Holder from
exercising its available remedies upon a Default, subject to the rights of
holders of Senior Indebtedness of the Company to receive distributions
otherwise payable to Holders as provided in this Article V.

Section 5.08.          Subordination May Not Be Impaired by
Company.  No right of any holder of Senior Indebtedness
of the Company to enforce the subordination of the indebtedness evidenced by
the Notes shall be impaired by any act or failure to act by the Company or by
its failure to comply with this Indenture.

Section 5.09.          Rights of Trustee and
Paying Agent.

(a)           Notwithstanding this Article V, the Trustee or Paying
Agent may continue to make payments on the Notes and shall not be charged with
knowledge of the existence of facts that would prohibit the making of any such
payments unless, not less than two Business Days prior to the date of such
payment, a trust officer of the Trustee receives written notice satisfactory to
it that payments may not be made under this Article V.  The Company, the Registrar or co-registrar,
the Paying Agent, a Representative or a holder of Senior Indebtedness may give
the notice; provided, however, that, if the holders of an issue
of Senior Indebtedness of the Company have a Representative, only the
Representative may give the notice.

 30
 

(b)           The Trustee in its individual or any other capacity
may hold Senior Indebtedness of the Company with the same rights it would have
if it were not Trustee.  The Registrar
and co-registrar and the Paying Agent may do the same with like rights.  The Trustee shall be entitled to all the
rights set forth in this Article V with respect to any Senior Indebtedness
of the Company which may at any time be held by it, to the same extent as any
other holder of such Senior Indebtedness, and nothing in Article VI shall
deprive the Trustee of any of its rights as such holder.  Nothing in this Article V shall apply to
claims of, or payments to, the Trustee under or pursuant to Section 7.6 of the
Base Indenture.

Section 5.10.          Distribution or Notice to
Representative.  Whenever a distribution is to be made or a
notice given to holders of Senior Indebtedness of the Company, the distribution
may be made and the notice given to their Representative (if any).

Section 5.11.          Article V Not to Prevent Events
of Default or Limit Right to Accelerate.  The failure
to make a payment pursuant to the Notes by reason of any provision in this
Article V shall not be construed as preventing the occurrence of a
Default.  Nothing in this Article V
shall have any effect on the right of the Holders or the Trustee to accelerate
the maturity of the Notes.

Section 5.12.          Trust Moneys Not Subordinated. 
Notwithstanding anything contained herein to the contrary, payments from
money or the proceeds of Governmental Obligations held in trust by the Trustee
for the payment of principal of and interest on the Notes pursuant to Article
XI of the Base Indenture shall not be subordinated to the prior payment of any
Senior Indebtedness or subject to the restrictions set forth in this
Article V, and none of the Holders shall be obligated to pay over any such
amount to the Company or any holder of Senior Indebtedness of the Company or
any other creditor of the Company.

Section 5.13.          Trustee Entitled to Rely. 
Upon any payment or distribution pursuant to this Article V, the
Trustee and the Holders shall be entitled to rely (i) upon any order or
decree of a court of competent jurisdiction in which any proceedings of the
nature referred to in Section 5.2 are pending, (ii) upon a certificate of
the liquidating trustee or agent or other Person making such payment or
distribution to the Trustee or to the Holders or (iii) upon the
Representative for the holders of Senior Indebtedness of the Company for the
purpose of ascertaining the Persons entitled to participate in such payment or
distribution, the holders of such Senior Indebtedness and other indebtedness of
the Company, the amount thereof or payable thereon, the amount or amounts paid
or distributed thereon and all other facts pertinent thereto or to this
Article V.  In the event that the
Trustee determines, in good faith, that evidence is required with respect to
the right of any Person as a holder of Senior Indebtedness of the Company to
participate in any payment or distribution pursuant to this Article V, the
Trustee may request such Person to furnish evidence to the reasonable
satisfaction of the Trustee as to the amount of such Senior Indebtedness held
by such Person, the extent to which such Person is entitled to participate in
such payment or distribution and other facts pertinent to the rights of such
Person under this Article V, and, if such evidence is not furnished, the
Trustee may defer any payment to such Person pending judicial determination as
to the right of such Person to receive such payment.  The provisions of Section 7.01 and Section
7.02 of the Base Indenture shall be applicable to all actions or omissions of
actions by the Trustee pursuant to this Article V.

 31
 

Section 5.14.          Trustee to Effectuate Subordination. 
Each Holder by accepting a Note authorizes and directs the Trustee on
such Holder’s behalf to take such action as may be necessary or appropriate to
acknowledge or effectuate the subordination between the Holders and the holders
of Senior Indebtedness of the Company as provided in this Article V and
appoints the Trustee as attorney-in-fact for any and all such purposes.

Section 5.15.          Trustee Not Fiduciary for Holders of
Senior Indebtedness.  The Trustee shall not be deemed to owe any
fiduciary duty to the holders of Senior Indebtedness and shall not be liable to
any such holders if it shall mistakenly pay over or distribute to Holders or
the Company or any other Person, money or assets to which any holders of Senior
Indebtedness of the Company shall be entitled by virtue of this Article V
or otherwise.

Section 5.16.          Reliance by Holders of Senior
Indebtedness on Subordination Provisions.  Each Holder
by accepting a Note acknowledges and agrees that the foregoing subordination
provisions are, and are intended to be, an inducement and a consideration to
each holder of any Senior Indebtedness of the Company, whether such Senior
Indebtedness was created or acquired before or after the issuance of the Notes,
to acquire and continue to hold, or to continue to hold, such Senior
Indebtedness and such holder of such Senior Indebtedness shall be deemed
conclusively to have relied on such subordination provisions in acquiring and
continuing to hold, or in continuing to hold, such Senior Indebtedness.

Section 5.17.          No Layering of Indebtedness. 
The Company shall not incur, create, issue, assume, guarantee or
otherwise become liable for any indebtedness that is subordinate or junior in
right of payment to any Senior Indebtedness and senior in right of payment to
the Notes.  For purposes of the
foregoing, for the avoidance of doubt, no indebtedness shall be deemed to be
subordinated in right of payment to any other indebtedness solely by virtue of
being unsecured or secured by a junior priority lien or by virtue of the fact
that the holders of such indebtedness have entered into intercreditor
agreements or other arrangements giving one or more of such holders priority
over the other holders in the collateral held by them or by virtue of
structural subordination.

For
the avoidance of doubt, other than as set forth in the preceding paragraph,
this Indenture shall not limit the amount of additional indebtedness, including
senior indebtedness, which the Company can create, incur, assume or guarantee.

Article VI

Default and Remedies

Section 6.01.          Events of Default. 
In addition to the Events of Default specified in Section 6.01 of the
Base Indenture, each of the following will constitute and Event of Default with
respect to the Notes:

(a)           the Company defaults in the payment of Cash or shares
of Common Stock (if any) upon conversion of any Note (including any Additional
Shares) when the same becomes due and payable hereunder;

 32
 

(b)           the Company defaults in the payment of the purchase
price of any Note when the same becomes due and payable pursuant to Article III
hereof;

(c)           the Company fails to provide on a timely basis written
notice of a Fundamental Change as required by Section 3.01(b);

(d)           the Company defaults in the payment of any
indebtedness for money borrowed by the Company or one of its Significant
Subsidiaries in an outstanding principal amount in excess of $5,000,000 when
the same becomes due and payable or is accelerated and such indebtedness is not
discharged, or such default in payment or acceleration is not cured or
rescinded after the applicable grace period, if any, specified in the agreement
or instrument relating to such indebtedness; and

(e)           the Company or any of its Significant Subsidiaries
defaults in the payment of one or more final and non-appealable judgments
entered by a court or courts of competent jurisdiction, the aggregate uninsured
or unbonded portion of which is in excess of $5,000,000 and such judgments are
not paid, discharged or stayed within 60 days.

Section 6.02.          Amendment and Waiver. 
Notwithstanding any other provision of the Indenture, the consent of
each Holder affected thereby is required for any amendment to, or waiver of any
Default under, this Article VI.

Article VII

Miscellaneous

Section 7.01.          Ratification of Base Indenture;
Supplemental Indenture Part of Base Indenture.  Except as
expressly amended or supplemented hereby, the Base Indenture is in all respects
ratified and confirmed and all the terms, conditions and provisions thereof
shall remain in full force and effect. This First Supplemental Indenture shall
form a part of the Base Indenture for all purposes, and every Holder of any
Notes heretofore or hereafter authenticated and delivered pursuant hereto shall
be bound hereby. Except only insofar as the Base Indenture may be inconsistent
with the express provisions of this First Supplemental Indenture, in which case
the terms of this First Supplemental Indenture shall govern and supersede those
contained in the Base Indenture, this First Supplemental Indenture shall henceforth
have effect so far as practicable as if all the provisions of the Base
Indenture and this First Supplemental Indenture were contained in one
instrument.

Section 7.02.          Concerning the Trustee. 
The recitals contained herein and in the Notes, except with respect to
the Trustee’s certificates of authentication, shall be taken as the statements
of the Company, and the Trustee assumes no responsibility for the correctness
of the same. The Trustee makes no representations as to the validity or
sufficiency of this First Supplemental Indenture or of the Notes.  Neither the Conversion Agent nor the Trustee
shall be responsible for determining or monitoring the Closing Sale Price or
any adjustment to the Conversion Price, which shall be determined by the Company
in good faith.  Absent manifest error,
such determinations by the Company shall be binding on all Holders.  The Company shall provide a schedule of its
calculations under this Section 7.02 to the Trustee, which shall be entitled to
rely

 33
 

conclusively on the accuracy thereof without
independent verification.  The Trustee
shall not be responsible for making any calculations required by the Indenture.

Section 7.03.          Counterparts. 
This First Supplemental Indenture may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original,
but all such counterparts shall together constitute one and the same
instrument.

Section 7.04.          Governing Law. 
This First Supplemental Indenture, the Indenture and the Notes shall be
governed by, and construed in accordance with, the laws of the State of New
York but without giving effect to applicable principles of conflicts of law to
the extent that the application of the laws of another jurisdiction would be
required thereby.

[Remainder of this page intentionally left blank]

 34
 

IN WITNESS WHEREOF, the parties have caused this First
Supplemental Indenture to be duly executed by their respective officers
thereunto duly authorized as of the date first above written.

	
  

  	
  NOVAMED, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas S. Hall

  	
   

  
	
   

  	
  Name: Thomas S. Hall

  
	
   

  	
  Title: President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LASALLE BANK NATIONAL ASSOCIATION,

  
	
   

  	
  as
  Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Erik R. Benson

  	
   

  
	
   

  	
  Name: Erik R.
  Benson

  
	
   

  	
  Title: First
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas Popovics

  	
   

  
	
   

  	
  Name: Thomas Popovics

  
	
   

  	
  Title: Assistant
  Vice President

  

 

 35

Schedule 4.13 – Additional Shares

	
   

  	
   

  	
  Stock Price

  	
   

  
	
  Effective Date

  	
   

  	
  $5.54

  	
   

  	
  $6

  	
   

  	
  $7

  	
   

  	
  $8

  	
   

  	
  $9

  	
   

  	
  $10

  	
   

  	
  $11

  	
   

  	
  $12

  	
   

  	
  $13

  	
   

  	
  $14

  	
   

  	
  $15

  	
   

  	
  $20

  	
   

  	
  $25

  	
   

  	
  $30

  	
   

  	
  $35

  	
   

  
	
  June
  27, 2007

  	
   

  	
  23.54

  	
   

  	
  23.54

  	
   

  	
  19.07

  	
   

  	
  13.89

  	
   

  	
  10.38

  	
   

  	
  7.92

  	
   

  	
  6.16

  	
   

  	
  4.85

  	
   

  	
  3.87

  	
   

  	
  3.12

  	
   

  	
  2.54

  	
   

  	
  0.97

  	
   

  	
  0.37

  	
   

  	
  0.12

  	
   

  	
  0.00

  	
   

  
	
  June
  15, 2008

  	
   

  	
  23.54

  	
   

  	
  23.54

  	
   

  	
  18.70

  	
   

  	
  13.26

  	
   

  	
  9.66

  	
   

  	
  7.20

  	
   

  	
  5.47

  	
   

  	
  4.22

  	
   

  	
  3.30

  	
   

  	
  2.61

  	
   

  	
  2.08

  	
   

  	
  0.73

  	
   

  	
  0.26

  	
   

  	
  0.06

  	
   

  	
  0.00

  	
   

  
	
  June
  15, 2009

  	
   

  	
  23.54

  	
   

  	
  23.54

  	
   

  	
  17.68

  	
   

  	
  12.03

  	
   

  	
  8.42

  	
   

  	
  6.03

  	
   

  	
  4.41

  	
   

  	
  3.29

  	
   

  	
  2.49

  	
   

  	
  1.91

  	
   

  	
  1.48

  	
   

  	
  0.46

  	
   

  	
  0.13

  	
   

  	
  0.01

  	
   

  	
  0.00

  	
   

  
	
  June
  15, 2010

  	
   

  	
  23.54

  	
   

  	
  23.54

  	
   

  	
  15.61

  	
   

  	
  9.86

  	
   

  	
  6.41

  	
   

  	
  4.27

  	
   

  	
  2.92

  	
   

  	
  2.04

  	
   

  	
  1.46

  	
   

  	
  1.07

  	
   

  	
  0.79

  	
   

  	
  0.21

  	
   

  	
  0.04

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  June
  15, 2011

  	
   

  	
  23.54

  	
   

  	
  21.92

  	
   

  	
  11.39

  	
   

  	
  5.96

  	
   

  	
  3.16

  	
   

  	
  1.72

  	
   

  	
  0.98

  	
   

  	
  0.58

  	
   

  	
  0.37

  	
   

  	
  0.24

  	
   

  	
  0.17

  	
   

  	
  0.04

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  June
  15, 2012

  	
   

  	
  23.54

  	
   

  	
  9.71

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  

 

 Sch-1

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