Document:

EXHIBIT
4.1

EXECUTION
COPY

HEADWATERS
INCORPORATED

as Issuer

AND

WELLS
FARGO BANK, NATIONAL ASSOCIATION

as
Trustee

Indenture

Dated
as of January 22, 2007

2.50% Convertible Senior Subordinated Notes
due 2014

TABLE
OF CONTENTS

	
  

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE
  1

  	
   

  
	
  Definitions and Other Provisions of General Application

  	
   

  
	
   

  	
   

  
	
  Section 1.01.  Definitions

  	
  1

  
	
  Section 1.02.  Compliance
  Certificates and Opinions

  	
  14

  
	
  Section 1.03.  Form of
  Documents Delivered to Trustee

  	
  15

  
	
  Section 1.04.  Acts of
  Holders; Record Dates

  	
  15

  
	
  Section 1.05.  Notices,
  Etc., to Trustee and Company

  	
  17

  
	
  Section 1.06.  Notice to
  Holders; Waiver

  	
  17

  
	
  Section 1.07.  Conflict
  with Trust Indenture Act

  	
  18

  
	
  Section 1.08.  Effect of
  Headings and Table of Contents

  	
  18

  
	
  Section 1.09.  Severability
  Clause

  	
  18

  
	
  Section 1.10.  Benefits
  of Indenture

  	
  18

  
	
  Section 1.11.  Governing
  Law

  	
  18

  
	
  Section 1.12.  No
  Recourse Against Others

  	
  18

  
	
   

  	
   

  
	
  ARTICLE
  2

  	
   

  
	
  Security Forms

  	
   

  
	
   

  	
   

  
	
  Section 2.01.  Forms
  Generally

  	
  18

  
	
  Section 2.02.  Form of
  Face of Security

  	
  19

  
	
  Section 2.03.  Form of
  Reverse of Security

  	
  22

  
	
  Section 2.04.  Form of
  Trustee’s Certificate of Authentication

  	
  30

  
	
  Section 2.05.  Legend on
  Restricted Securities

  	
  30

  
	
   

  	
   

  
	
  ARTICLE
  3

  	
   

  
	
  The Securities

  	
   

  
	
   

  	
   

  
	
  Section 3.01.  Title and
  Terms; Payments

  	
  30

  
	
  Section 3.02.  Ranking

  	
  31

  
	
  Section 3.03.  Denominations

  	
  31

  
	
  Section 3.04.  Execution,
  Authentication, Delivery and Dating

  	
  31

  
	
  Section 3.05.  Temporary
  Securities

  	
  32

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

  	
  32

  
	
  Section 3.07.  Mutilated,
  Destroyed, Lost and Stolen Securities

  	
  35

  
	
  Section 3.08.  Persons
  Deemed Owners

  	
  35

  
	
  Section 3.09.  Book-Entry
  Provisions for Global Securities

  	
  36

  
	
  Section 3.10.  Cancellation
  and Transfer Provisions

  	
  37

  
	
  Section 3.11.  CUSIP
  Numbers

  	
  39

  

 

 i
 

 

 

	
  ARTICLE 4

  	
   

  
	
  Particular Covenants of the Company

  	
   

  
	
   

  	
   

  
	
  Section 4.01.  Payment of Principal and Interest

  	
  39

  
	
  Section 4.02.  Maintenance of Office or Agency

  	
  39

  
	
  Section 4.03.  Provisions as to Paying Agent

  	
  40

  
	
  Section 4.04.  Rule 144A Information Requirement

  	
  41

  
	
  Section 4.05.  Resale of Certain Securities

  	
  42

  
	
  Section 4.06.  Commission Filings

  	
  42

  
	
  Section 4.07.  Book-Entry System

  	
  42

  
	
  Section 4.08.  Additional Interest under the Registration Rights Agreement

  	
  42

  
	
  Section 4.09.  Compliance Certificate

  	
  42

  
	
   

  	
   

  
	
  ARTICLE 5

  	
   

  
	
  Fundamental Changes and Purchases Thereupon

  	
   

  
	
   

  	
   

  
	
  Section 5.01.  Purchase at Option of Holders Upon a Fundamental Change

  	
  43

  
	
  Section 5.02.  Effect of Fundamental Change Purchase Notice

  	
  46

  
	
  Section 5.03.  Withdrawal of Fundamental Change Purchase Notice

  	
  46

  
	
  Section 5.04.  Deposit of Fundamental Change Purchase Price

  	
  47

  
	
  Section 5.05.  Securities Purchased in Whole or in Part

  	
  48

  
	
  Section 5.06.  Covenant to Comply With Securities Laws Upon Purchase of Securities

  	
  48

  
	
  Section 5.07.  Repayment to the Company

  	
  48

  
	
   

  	
   

  
	
  ARTICLE 6

  	
   

  
	
  Conversion

  	
   

  
	
   

  	
   

  
	
  Section 6.01.  Right to Convert

  	
  48

  
	
  Section 6.02.  Conversion Procedure

  	
  51

  
	
  Section 6.03.  Payments Upon Conversion

  	
  52

  
	
  Section 6.04.  Adjustment of Conversion Rate

  	
  54

  
	
  Section 6.05.  Adjustments of Average Prices

  	
  63

  
	
  Section 6.06.  Adjustments Upon Certain Fundamental Changes

  	
  63

  
	
  Section 6.07.  Effect of Recapitalization, Reclassification, Consolidation, Merger
  or Sale

  	
  64

  
	
  Section 6.08.  Taxes on Shares Issued

  	
  66

  
	
  Section 6.09.  Reservation of Shares;
  Shares to be Fully Paid; Compliance With Governmental Requirements; Listing
  of

  Common Stock

  	
  66

  
	
  Section 6.10.  Responsibility of Trustee

  	
  67

  
	
  Section 6.11.  Notice to Holders Prior to Certain Actions

  	
  67

  
	
  Section 6.12.  Stockholder Rights Plan

  	
  68

  
	
  Section 6.13.  Company Determination Final

  	
  69

  

 ii
 

 

	
  ARTICLE 7

  	
   

  
	
  Events of Default; Remedies

  	
   

  
	
   

  	
   

  
	
  Section 7.01.  Events of Default

  	
  69

  
	
  Section 7.02.  Acceleration of
  Maturity; Rescission and Annulment

  	
  71

  
	
  Section 7.03.  Collection of
  Indebtedness and Suits for Enforcement by Trustee

  	
  72

  
	
  Section 7.04.  Trustee May File Proofs
  of Claim

  	
  72

  
	
  Section 7.05.  Application of Money and
  Property Collected

  	
  72

  
	
  Section 7.06.  Limitation on Suits

  	
  73

  
	
  Section 7.07.  Unconditional Right of
  Holders to Receive Payment

  	
  74

  
	
  Section 7.08.  Restoration of Rights
  and Remedies

  	
  74

  
	
  Section 7.09.  Rights and Remedies
  Cumulative

  	
  74

  
	
  Section 7.10.  Delay or Omission Not
  Waiver

  	
  74

  
	
  Section 7.11.  Control by Holders

  	
  75

  
	
  Section 7.12.  Waiver of Past Defaults

  	
  75

  
	
  Section 7.13.  Undertaking for Costs

  	
  75

  
	
  Section 7.14.  Waiver of Stay or
  Extension Laws

  	
  75

  
	
  Section 7.15.  Notice of Default

  	
  76

  
	
   

  	
   

  
	
  ARTICLE
  8

  	
   

  
	
  Consolidation, Merger, Conveyance, Transfer or Lease

  	
   

  
	
   

  	
   

  
	
  Section 8.01.  Company May Consolidate,
  etc., Only on Certain Terms

  	
  76

  
	
  Section 8.02.    Successor Substituted

  	
  76

  
	
   

  	
   

  
	
  ARTICLE
  9

  	
   

  
	
  Subordination of the Securities

  	
   

  
	
   

  	
   

  
	
  Section 9.01.  Agreement of
  Subordination

  	
  77

  
	
  Section 9.02.  Payments to Holders

  	
  77

  
	
  Section 9.03.  Subrogation of
  Securities

  	
  80

  
	
  Section 9.04.  Authorization to Effect
  Subordination

  	
  82

  
	
  Section 9.05.  Notice to Trustee

  	
  82

  
	
  Section 9.06.  Trustee’s Relation to
  Senior Indebtedness

  	
  83

  
	
  Section 9.07.  No Impairment of
  Subordination

  	
  83

  
	
  Section 9.08.  Certain Conversions
  Deemed Payment

  	
  83

  
	
  Section 9.09.  Article Applicable to
  Paying Agents

  	
  84

  
	
  Section 9.10.  Senior Indebtedness
  Entitled to Rely

  	
  84

  
	
  Section 9.11.  Anti-Layering

  	
  84

  
	
   

  	
   

  
	
  ARTICLE
  10

  	
   

  
	
  The Trustee

  	
   

  
	
   

  	
   

  
	
  Section 10.01.  Duties and
  Responsibilities of Trustee

  	
  85

  

 

 iii
 

 

	
  Section 10.02.  Notice of Defaults

  	
  86

  
	
  Section 10.03.  Reliance on Documents,
  Opinions, Etc

  	
  86

  
	
  Section 10.04.  No Responsibility for
  Recitals, Etc

  	
  88

  
	
  Section 10.05.  Trustee, Paying Agents,
  Conversion Agents or Registrar May Own Securities

  	
  88

  
	
  Section 10.06.  Monies to be Held in
  Trust

  	
  88

  
	
  Section 10.07.  Compensation and
  Expenses of Trustee

  	
  88

  
	
  Section 10.08.  Officers’ Certificate as
  Evidence

  	
  89

  
	
  Section 10.09.  Conflicting Interests of
  Trustee

  	
  89

  
	
  Section 10.10.  Eligibility of Trustee

  	
  89

  
	
  Section 10.11.  Resignation or Removal
  of Trustee

  	
  90

  
	
  Section 10.12.  Acceptance by Successor
  Trustee

  	
  91

  
	
  Section 10.13.  Succession by Merger,
  Etc

  	
  92

  
	
  Section 10.14.  Preferential Collection
  of Claims

  	
  92

  
	
   

  	
   

  
	
  ARTICLE
  11

  	
   

  
	
  Holders’ Lists and Reports by Trustee

  	
   

  
	
   

  	
   

  
	
  Section 11.01.  Company to Furnish
  Trustee Names and Addresses of Holders

  	
  93

  
	
  Section 11.02.  Preservation of
  Information; Communications to Holders

  	
  93

  
	
  Section 11.03.  Reports By Trustee

  	
  93

  
	
  Section 11.04.  Reports by Company

  	
  94

  
	
   

  	
   

  
	
  ARTICLE
  12

  	
   

  
	
  Satisfaction and Discharge

  	
   

  
	
   

  	
   

  
	
  Section 12.01.  Discharge of Indenture

  	
  94

  
	
  Section 12.02.  Deposited Monies to be
  Held in Trust by Trustee

  	
  95

  
	
  Section 12.03.  Paying Agent to Repay
  Monies Held

  	
  95

  
	
  Section 12.04.  Return of Unclaimed Monies

  	
  95

  
	
  Section 12.05.  Reinstatement

  	
  95

  
	
   

  	
   

  
	
  ARTICLE
  13

  	
   

  
	
  Supplemental Indentures

  	
   

  
	
   

  	
   

  
	
  Section 13.01.  Supplemental Indentures
  Without Consent of Holders

  	
  96

  
	
  Section 13.02.  Supplemental Indentures
  With Consent of Holders

  	
  97

  
	
  Section 13.03.  Execution of
  Supplemental Indentures

  	
  98

  
	
  Section 13.04.  Effect of Supplemental
  Indentures

  	
  98

  
	
  Section 13.05.  Conformity with Trust
  Indenture Act

  	
  98

  
	
  Section 13.06.  Reference in Securities
  to Supplemental Indentures

  	
  98

  
	
  Section 13.07.  Notice to Holders of
  Supplemental Indentures

  	
  98

  

 

 iv
 

 

 

	
  ARTICLE 14

  	
   

  
	
  Miscellaneous

  	
   

  
	
   

  	
   

  
	
  Section 14.01.  Communication by Holders
  with other Holders

  	
  99

  
	
  Section 14.02.  When Securities Are
  Disregarded

  	
  99

  
	
  Section 14.03.  Rules by Trustee, Paying
  Agent and Security Registrar

  	
  99

  
	
  Section 14.04.  Successors

  	
  99

  
	
  Section 14.05.  Multiple Originals

  	
  99

  
	
  Section 14.06.  Qualification of
  Indenture

  	
  99

  
	
  Section 14.07.  Calculations

  	
  100

  
	
  Section 14.08.  Waiver of Jury Trial

  	
  100

  
	
  Section 14.09.  Force Majeure

  	
  100

  

 

 v

INDENTURE,
dated as of January 22, 2007, between Headwaters Incorporated, a corporation
duly organized and existing under the laws of the State of Delaware, as Issuer
(the “Company”), having its principal office
at 10653 South River Front Parkway, Suite 300, Utah 84095 and Wells Fargo Bank,
National Association, a national banking association, as Trustee (the “Trustee”).

RECITALS OF THE COMPANY

WHEREAS,
the Company has duly authorized the creation of an issue of

2.50% Convertible Senior Subordinated Notes due 2014 (each a “Security” and collectively, the “Securities”)
of the tenor and amount hereinafter set forth, and to provide therefor the
Company has duly authorized the execution and delivery of this Indenture; and

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

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

ARTICLE 1

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

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

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

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

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

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

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

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

“Additional Shares” has the meaning specified in Section
6.06(a).

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

“Agent Members” has the meaning specified in Section 3.09(a).

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

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

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

“Business Day” means, with respect to any Security, any day
other than a Saturday, a Sunday or a day on which the Federal Reserve Bank of
New York is closed.

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

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

“Commission” means the U.S. Securities and Exchange
Commission, as from time to time constituted, created under the Exchange Act,
or, if at any time 

 2
 

after the execution of this instrument such Commission
is not existing and performing the duties now assigned to it under the Trust
Indenture Act, then the body performing such duties at such time.

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

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

“Company Request” or “Company Order”
means a written request or order signed in the name of the Company by its Chief
Executive Officer or its President and by its Chief Financial Officer, its
Treasurer or its Secretary, and delivered to the Trustee.

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

“Conversion Date” has the meaning specified in Section
6.02(b).

“Conversion Notice” shall have the meaning specified in
Section 6.02(b).

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

“Conversion Rate” has the meaning specified in Section 2.03.

“Corporate Trust Office” means the office of the Trustee at
which the corporate trust business of the Trustee shall, at any particular
time, be administered, which office is, at the date as of which this Indenture
is dated, located at Sixth & Marquette; N9303-120, Minneapolis, MN 55479,
Attn: Corporate Trust Services [re: Headwaters Incorporated, 2.50% Convertible
Senior Subordinated Notes due 2014)].

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

 3
 

“Custodian” means the Trustee, as custodian with respect to
the Securities in global form, or any successor entity.

“Daily Conversion Value”
means, for each of the 20 consecutive Trading Days during the Observation
Period, one-twentieth of the product of (i) the applicable Conversion Rate on
such Trading Day and (ii) the Daily VWAP of Common Stock for such Trading Day.

“Daily Settlement Amount” has the meaning specified in
Section 6.03(b).

“Daily VWAP” means, for each of the 20 consecutive Trading
Days during the Observation Period, the per share volume-weighted average price
as displayed under the heading “Bloomberg VWAP” on Bloomberg page “HW.N
<equity> AQR” (or its equivalent successor if such page is not available)
in respect of the period from the scheduled open of trading until the scheduled
close of trading of the primary trading session on such Trading Day (or if such
volume-weighted average price is unavailable, the market value of one share of
Common Stock on such Trading Day determined, using a volume-weighted average
method, by a nationally recognized independent investment banking firm retained
for such purpose by the Company).

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

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

“Designated Senior Indebtedness” means the Indebtedness under
the Senior Credit Agreement and any other Senior Indebtedness in which the
instrument creating or evidencing the Indebtedness, or any related agreements
or documents to which the Company is a party, expressly provides that such
indebtedness is “designated senior indebtedness” for purposes of this Indenture
(provided that the instrument, agreement or other document may place
limitations and conditions on the right of the Senior Indebtedness to exercise
the rights of Designated Senior Indebtedness).

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

“Event of Default” has the meaning specified in Section 7.01.

“Ex-Date” means, except as provided in Section 6.04(g)
hereof, with respect to any dividend, the first date upon which a sale of
Common Stock does 

 4
 

not automatically transfer the right to receive the
relevant dividend from the seller of the Common Stock to its buyer.

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

“Fair Market Value” means the amount which a willing buyer
would pay a willing seller in an arm’s length transaction.

“Fundamental Change” means the occurrence of any of the
following events at any time after the Securities are originally issued:

(1)                                  a
“person” or “group” within the meaning of Section 13(d) of the Exchange Act
other than the Company, its Subsidiaries or the Company’s or its Subisidiaries
employee benefit plans, files a Schedule TO or any schedule, form or report
under the Exchange Act disclosing that such person or group has become the
direct or indirect “beneficial owner,” as defined in Rule 13d-3 under the
Exchange Act, of the Company’s common equity representing more than 50% of the
voting power of the Company’s common equity;

(2)                                  consummation
of any share exchange, consolidation or merger of the Company (excluding a
merger solely for the purpose of changing the Company’s jurisdiction of
incorporation) pursuant to which the Common Stock will be converted into cash,
securities or other property or any sale, lease or other transfer in one
transaction or a series of transactions of all or substantially all of the
consolidated assets of the Company and its Subsidiaries, taken as a whole, to
any Person other than one of the Subsidiaries; provided,
however, that a transaction where the
holders of more than 50% of all classes of the Company’s common equity
immediately prior to such transaction own, directly or indirectly, more than
50% of all classes of common equity of the continuing or surviving corporation
or transferee or the parent thereof immediately after such event shall not be a
Fundamental Change;

(3)                                  the
Company’s stockholders approve any plan or proposal for the liquidation or
dissolution of the Company; or

(4)                                  the
Common Stock, or other common stock into which the Securities are then
convertible, ceases to be listed on a national securities exchange.

A
Fundamental Change will not be deemed to have occurred, however, if at least
90% of the consideration received or to be received by holders of the Common
Stock, excluding cash payments for fractional shares, in connection with the
transaction or transactions constituting the Fundamental Change consists of
Publicly Traded Securities and, as a result of such transaction or transactions,
the 

 5
 

Securities become convertible into such Publicly
Traded Securities, excluding cash payments for fractional shares.

“Fundamental Change Company Notice” has the meaning specified
in Section 5.01(b).

“Fundamental Change Purchase Date” has the meaning specified
in Section 5.01(a).

“Fundamental Change Purchase Notice” has the meaning
specified in Section 5.01(a).

“Fundamental Change Purchase Price” has the meaning specified
in Section 5.01(a).

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

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

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

“Indebtedness”
means:

(i)                                             all of the Company’s indebtedness, obligations and other
liabilities, contingent or otherwise, (A) for borrowed money, including
overdrafts, foreign exchange contracts, currency exchange agreements, interest
rate protection agreements and any loans or advances from banks, whether or not
evidenced by notes or similar instruments, or (B) evidenced by credit or loan
agreements, bonds, debentures, notes or similar instruments, whether or not the
recourse of the lender is to the whole of the assets of the Company or to only
a portion thereof, other than any account payable or other accrued current
liability or obligation incurred in the ordinary course of business in
connection with the obtaining of materials or services;

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

 6
 

(iii)                               all
of the Company’s obligations and liabilities, contingent or otherwise, in
respect of leases required, in conformity with GAAP, to be accounted for as
capitalized lease obligations on the Company’s balance sheet;

(iv)                              all
of the Company’s obligations and other liabilities, contingent or otherwise,
under any lease or related document, including a purchase agreement,
conditional sale or other title retention agreement, in connection with the
lease of real property or improvements thereon (or any personal property
included as part of any such lease) which provides that the Company is
contractually obligated to purchase or cause a third party to purchase the
leased property or pay an agreed upon residual value of the leased property,
including the Company’s obligations under such lease or related document to
purchase or cause a third party to purchase such leased property or pay an
greed upon residual value of the leased property to the lessor;

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

(vi)                              all
of the Company’s direct or indirect guarantees or similar agreements by the
Company in respect of, and all of the Company’s obligations or liabilities to
purchase or otherwise acquire or otherwise assure a creditor against loss in
respect of, indebtedness, obligations or liabilities of another person of the
kinds described in clauses (i) through (v) above; and

(vii)                           any and
all deferrals, renewals, extensions, refinancings and refundings of, or
amendments, modifications or supplements to, any indebtedness, obligation or
liability of the kinds described in clauses (i) through (vi) above.

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

“Initial Purchasers” means J.P. Morgan Securities Inc.,
Deutsche Bank Securities Inc., Morgan Stanley & Co. Incorporated, Canaccord
Adams Inc., Stephens Inc. and Wedbush Morgan Securities Inc.

 7
 

“Interest Payment Date” means each February 1 and August 1 of
each year, beginning August 1, 2007.

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

“Last Reported Sale Price” means, on any date, the closing
sale price per share of the Common Stock (or, if no closing sale price is
reported, the average of the bid and ask prices or, if more than one in either
case, the average of the average bid and the average ask prices) on such date
as reported in composite transactions for the principal U.S. national or
regional securities exchange on which the Common Stock is traded.  If the Common Stock is not listed for trading
on a U.S. national or regional securities exchange on the relevant date, the
“Last Reported Sale Price” shall mean the last quoted bid price for the Common
Stock in the over-the-counter market on such date as reported by the National
Quotation Bureau Incorporated or any similar organization.  If the Common Stock is not so quoted, the
“Last Reported Sale Price” shall mean the average of the mid-point of the last
bid and ask prices for the Common Stock on such date from each of at least
three nationally recognized independent investment banking firms selected by
the Company for such purpose.

“Market Disruption Event” means (i) a failure by the primary
U.S. national securities exchange or market on which the Common Stock is listed
or admitted to trading to open for trading during its regular trading session
or (ii) the occurrence or existence prior to 1:00 p.m. on any Scheduled Trading
Day for the Common Stock for an aggregate one half hour period of any
suspension or limitation imposed on trading (by reason of movements in price
exceeding limits permitted by the stock exchange or otherwise) in the Common
Stock or in any options, contracts or future contracts relating to the Common
Stock.

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

“Measurement Period” has the meaning specified in Section
6.01(a).

“Notice of Default” has the meaning specified in Section
7.01.

“Observation Period” with respect to any Security tendered
for conversion means: (i) if the related Conversion Date is on or after
December 1, 2013 (whether or not such date is a Business Day), the 20
consecutive Trading Days beginning on, and including, the 22nd Scheduled
Trading Day prior to Stated Maturity; and (ii) in all other instances, the 20
consecutive Trading Days

 8
 

beginning
on, and including, the second Scheduled Trading Day following the related
Conversion Date.

“Officers’ Certificate” means a certificate signed by the
Chief Executive Officer, the President or the Chief Financial Officer, and by
the Treasurer or the Secretary, of the Company, and delivered to the
Trustee.  One of the officers signing an
Officers’ Certificate given pursuant to Section 4.09 shall be the principal
executive, financial or accounting officer of the Company.

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

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

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

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

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

(iv)                              Securities
converted pursuant to Article 6;

provided, however,
that, in determining whether the Holders of the requisite Principal Amount of
the Outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, Securities owned by the Company
or any other obligor upon the Securities or any Affiliate of the Company or of
such other obligor shall be disregarded and deemed not to be Outstanding,
except that, in determining whether the Trustee shall be protected in relying
upon any such request, demand, authorization, direction, notice, consent or
waiver, only Securities which a Responsible Officer of the Trustee actually
knows to be so owned shall be so disregarded. 
Notwithstanding the foregoing,

 9
 

Securities that have been
pledged in good faith may be regarded as Outstanding if the pledgee establishes
to the satisfaction of the Trustee the pledgee’s right so to act with respect
to such Securities and that the pledgee is not the Company or any other obligor
of the Securities or any Affiliate of the Company or of such other obligor.

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

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

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

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

“Publicly Traded Securities” means, in respect of a
transaction set forth in the definition of Fundamental Change, shares of common
stock that are traded on a U.S. national securities exchange or which will be
so traded or quoted when issued or exchanged in connection with such
Fundamental Change.

“Purchase Agreement” means the Purchase Agreement, dated
January 16, 2007, entered into by the Company and the Initial Purchasers in
connection with the sale of the Securities.

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

“Record Date” means, with respect to the
payment of interest on the Securities, including Additional Interest, if any,
the January 15 (whether or not a Business Day) immediately preceding an
Interest Payment Date on February 1 and July 15 (whether or not a Business Day)
immediately preceding an Interest Payment Date on August 1.

“Reference Property” has the meaning specified in Section
6.07.

“Registration Rights Agreement” means the Registration Rights
Agreement, dated as of January 22, 2007, between the Company and the Initial
Purchasers, for the benefit of itself and the Holders, as the same may be
amended or modified from time to time in accordance with the terms thereof.

 10
 

“Representative” means the (a) indenture trustee or other
trustee, agent or representative for any Senior Indebtedness (including,
without limitation, any agent under the Senior Credit Agreement) or (b) with
respect to any Senior Indebtedness that does not have any such trustee, agent
or other representative, (i) in the case of such Senior Indebtedness issued
pursuant to an agreement providing for voting arrangements as among the holders
or owners of such Senior Indebtedness, any holder or owner of such Senior
Indebtedness acting with the consent of the required persons necessary to bind
such holders or owners of such Senior Indebtedness and (ii) in the case of all
other such Senior Indebtedness, the holder or owner of such Senior
Indebtedness.

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

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

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

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

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

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

“Rule 144A Information” has the meaning specified in Section
2.03.

“Scheduled Trading Day” means a day that is scheduled to be a
Trading Day.

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

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

“Security Register” and “Security Registrar”
have the respective meanings specified in Section 3.06.

 11
 

“Senior Credit Agreement” means
that certain Credit Agreement dated as of September 8, 2004 (as amended and
modified pursuant to consents dated November 6, 2004 and December 16, 2004,
Amendment No. 2 to the Credit Agreement dated March 14, 2005, Amendment No. 3
to the Credit Agreement dated May 19, 2005, Amendment No. 4 to the Credit
Agreement dated October 26, 2005, Amendment No. 5 to the Credit Agreement dated
June 27, 2006, and Amendment No. 6 to the Credit Agreement dated August 30,
2006 and Amendment No. 7 to the Credit Agreement dated January 12, 2007, among
Headwaters Incorporated, the lenders party thereto, Morgan Stanley & Co.
Incorporated, as collateral agent, and Morgan Stanley Senior Funding, Inc., as
administrative agent.

“Senior Indebtedness” means the principal of, and premium, if
any, interest, including any interest accruing after the commencement of any
bankruptcy or similar proceeding, whether or not a claim for post-petition interest
is allowed as a claim in the proceeding, and rent payable on or in connection
with, and all fees, costs, expenses and other amounts accrued or due on or in
connection with, Indebtedness, whether secured or unsecured, absolute or
contingent, due or to become due, outstanding on the date of this Indenture or
thereafter created, incurred, assumed, guaranteed or in effect guaranteed by
the Company, including all deferrals, renewals, extensions or refundings of, or
amendments, modifications or supplements to, the foregoing; provided, however, that
Senior Indebtedness does not include:

(i)                                     Indebtedness
that expressly provides that such Indebtedness (a) shall not be senior in right
of payment to the Securities, (b) shall be equal or junior in right of payment
to the Securities or (c) shall be junior in right of payment to any other
Indebtedness;

(ii)                                  any
Indebtedness to any majority-owned Subsidiaries, other than Indebtedness to the
Subsidiaries arising by reason of guarantees by the Company of Indebtedness of
such Subsidiary to a Person that is not a Subsidiary; and

(iii)                               Indebtedness for trade
payables or the deferred purchase price of assets or services incurred in the
ordinary course of business.

“Senior Subordinated Indebtedness” means, with respect to the
Company, the Securities and any other Indebtedness that specifically provides
that such Indebtedness is to have the same rank as the Securities in right of
payment and is not subordinated by its terms in right of payment to any
Indebtedness or other obligations of the Company that is not Senior
Indebtedness.

“Settlement Amount” has the meaning specified in Section
6.03(a).

 12
 

“Significant Subsidiary” means, as of any date of
determination, a Subsidiary of the Company that would constitute a “significant subsidiary” as such term is defined under Rule
1-02(w) of Regulation S-X of the Commission as in effect on the date of this
Indenture.

“Spin-Off” has the meaning specified in Section 6.04(c).

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

“Stock Price” has the meaning specified in Section 6.06(b).

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

“Subordinated Indebtedness” means, with respect to the
Company, any Indebtedness that specifically provides that such Indebtedness is
subordinated to the Securities.

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

“Successor Company” has the meaning specified in Section
8.01(a).

“Trading Day” means, except as provided in Section 6.03(g)
hereof, a day on which (i) trading in securities generally occurs on the New
York Stock Exchange or, if the Common Stock is not then listed on the New York
Stock Exchange, on the principal other U.S. national or regional securities
exchange on which the Common Stock is then listed or, if the Common Stock is
not then listed on a U.S. national or regional securities exchange, in the
principal other market on which the Common Stock is then traded and (ii) a Last
Reported Sale Price for the Common Stock is available on such securities
exchange or market.  If the Common Stock
(or other security for which a closing sale price must be determined) is not so
listed or quoted, “Trading Day” means a Business Day.

“Trading Price” of the Securities on any date of
determination means the average of the secondary market bid quotations per
$1,000 Principal Amount of

 13
 

the Securities obtained by the Bid Solicitation Agent
for $5,000,000 Principal Amount of the Securities at approximately 3:30 p.m.,
New York City time, on such determination date from three independent
nationally recognized securities dealers selected by the Company; provided that, if three such bids cannot reasonably be
obtained by the Bid Solicitation Agent but two such bids are obtained, then the
average of the two bids shall be used, and if only one such bid can reasonably
be obtained by the Bid Solicitation Agent, that one bid shall be used. If the
Bid Solicitation Agent cannot reasonably obtain at least one bid for $5,000,000
Principal Amount of the Securities from a nationally recognized securities
dealer, then the Trading Price per $1,000 original principal amount of
Securities will be deemed to be less than 98% of the product of the Last
Reported Sale Price of the Common Stock and the applicable Conversion Rate.

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

“Trigger Event” has the meaning specified in Section 6.04(b).

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

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

“U.S.” means the United States of America.

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

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

 14
 

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

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

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

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

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

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

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

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

 15

Section 1.04
   Acts of Holders; Record Dates

(a)                        Any
request, demand, authorization, direction, notice, consent, waiver or other
action provided by this Indenture to be given or taken by Holders may be
embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Holders in person or by agent duly appointed in writing
and, except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments are delivered to the Trustee and,
where it is hereby expressly required, to the Company.  Such instrument or instruments (and the
action embodied therein and evidenced thereby) are herein sometimes referred to
as an “Act” of the Holders signing such
instrument or instruments.  Proof of execution
of any such instrument or of a writing appointing any such agent shall be
sufficient for any purpose of this Indenture and (subject to Section 10.01)
conclusive in favor of the Trustee and the Company, if made in the manner
provided in this Section.

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

(c)                        The Company
may, in the circumstances permitted by the Trust Indenture Act, fix any day as
the record date for the purpose of determining the Holders entitled to give or
take any request, demand, authorization, direction, notice, consent, waiver or
other action, or to vote on any action, authorized or permitted to be given or
taken by Holders.  If not set by the
Company prior to the first solicitation of a Holder made by any Person in
respect of any such action, or, in the case of any such vote, prior to such vote,
the record date for any such action or vote shall be the 30th day (or, if
later, the date of the most recent list of Holders required to be provided
pursuant to Section 11.01) prior to such first solicitation or vote, as the
case may be.  With regard to any record
date, only the Holders on such date (or their duly designated proxies) shall be
entitled to give or take, or vote on, the relevant action.

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

(e)                        Any
request, demand, authorization, direction, notice, consent, waiver or other Act
of the Holder of any Security shall bind every future Holder of the same
Security and the Holder of every Security issued upon the registration of
transfer thereof or in exchange therefor or in lieu thereof in respect of
anything

 16
 

done, omitted or suffered to be done by the Trustee or
the Company in reliance thereon, whether or not notation of such action is made
upon such Security.

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

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

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

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

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

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

 17
 

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

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

Section 1.09.  Severability Clause.  In case any provision in this
Indenture or in the Securities shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

Section 1.10.  Benefits of Indenture.  Nothing in this Indenture or in
the Securities, express or implied, shall give to any Person, other than the
parties hereto and their respective successors hereunder and the Holders of
Securities, any benefit or any legal or equitable right, remedy or claim under
this Indenture.

Section 1.11.  Governing Law.  This Indenture and the Securities
shall be governed by and construed in accordance with the laws of the State of
New York.

Section 1.12.  No Recourse Against Others.  No director, officer, employee,
stockholder or Affiliate of the Company from time to time shall have any
liability for any obligations of the Company under the Securities or this
Indenture.  Each Holder by accepting a
Security waives and releases such liability.

ARTICLE 2

SECURITY FORMS

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

 18
 

or as may, consistently herewith, be determined by the
officers executing such Securities, as evidenced by their execution thereof.

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

Section 2.02.  Form of Face of Security.  (a) each Security shall bear the
following legend if it is a Restricted Security: THIS SECURITY HAS NOT BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE
FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER AGREES (1) THAT IT
WILL NOT WITHIN THE LATER OF (X) TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS
SECURITY AND (Y) THREE MONTHS AFTER IT CEASES TO BE AN AFFILIATE (WITHIN THE
MEANING OF RULE 144 ADOPTED UNDER THE SECURITIES ACT) OF THE ISSUER, RESELL OR
OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY OR THE COMMON STOCK ISSUABLE
UPON CONVERSION OF SUCH SECURITY, EXCEPT (A) TO THE ISSUER; (B) UNDER A
REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES
ACT; (C) TO A PERSON THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A ADOPTED UNDER THE SECURITIES ACT)
THAT IS PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER QUALIFIED
INSTITUTIONAL BUYER AND TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE
IN RELIANCE ON RULE 144A, ALL IN COMPLIANCE WITH RULE 144A (IF AVAILABLE); OR (D)
UNDER ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT; AND (2) THAT IT WILL, PRIOR TO ANY TRANSFER OF THIS SECURITY
WITHIN THE LATER OF (X) TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY
AND (Y) THREE MONTHS AFTER IT CEASES TO BE AN AFFILIATE (WITHIN THE MEANING OF
RULE 144 ADOPTED UNDER THE SECURITIES ACT) OF THE ISSUER, FURNISH TO THE
TRUSTEE AND THE ISSUER SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION
AS MAY BE REQUIRED PURSUANT TO THE INDENTURE TO CONFIRM THAT SUCH TRANSFER IS
BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

 19
 

(b)
Each Security that is a Global Security shall bear the following legend: THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE
THEREOF.  THIS SECURITY MAY NOT BE
EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF
THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON
OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

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

(c) The face of each
Security shall be substantially in the following form:

2.50% Convertible Senior Subordinated
Notes due 2014

	
  No.         

  	
   

  	
  CUSIP NO.

  	
   

  	
  U.S.$                      

  

 

Headwaters Incorporated, a corporation duly organized
and validly existing under the laws of the State of Delaware (herein called the
“Company”), which term includes any
successor corporation under the Indenture referred to on the reverse hereof),
for value received hereby promises to pay to
[      ], the principal sum of [                                 ]
United States Dollars ($[      ]) (which amount
may from time to time be decreased by adjustments made on the records of the
Trustee, as custodian for the Depositary, in accordance with the rules and
procedures of the Depositary) on February 1, 2014.  Payment of the principal of this Security
shall be made by check mailed to the address of the Holder of this Security
specified in the register of Securities, or, at the option of the Company, by
wire transfer in immediately available funds, in such lawful money of the
United States of America as at the time of payment shall be legal tender for
the payment of public and private debts.

The
issue date of this Security is January 22, 2007.

 20
 

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

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

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

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

	
   

  	
  HEADWATERS INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Signatory

  

 

 21
 

Section 2.03.  Form of Reverse of
Security.  The reverse of each
Security shall be substantially in the following form:

HEADWATERS INCORPORATED

2.50% Convertible Senior Subordinated
Notes due 2014

This
Security is one of a duly authorized issue of Securities of the Company,
designated as its 2.50% Convertible Senior Subordinated Notes
due 2014 (the “Securities”), all issued or to be issued under and
pursuant to an Indenture dated as of January 22, 2007 (the “Indenture”),
between the Company and Wells Fargo Bank, National Association (the “Trustee”),
to which Indenture and all indentures supplemental thereto reference is hereby
made for a description of the rights, limitations of rights, obligations,
duties and immunities thereunder of the Trustee, the Company and the Holders of
the Securities.

Interest.  The Securities will bear interest at a rate
of 2.50% per year until Maturity. Interest on the Securities will accrue from
January 22, 2007, or from the most recent date on which interest has been paid.  Interest will be payable semiannually in
arrears on February 1 and August 1, beginning August 1, 2007, and at Maturity.

Interest will be paid to the person in whose
name a Security is registered at the close of business on the January 15
(whether or not a Business Day) or July 15 (whether or not a Business Day), as
the case may be, immediately preceding the relevant Interest Payment Date.
Interest on the Securities will be computed on the basis of a 360-day year
composed of twelve 30-day months.

Ranking.  The Securities rank equally in
right of payment with all the Company’s existing and future unsecured Senior
Subordinated Indebtedness and are senior in right of payment to all of the
Company’s existing and future Subordinated Indebtedness, if any, as set forth
in the Indenture.  The Securities will rank junior to all
existing and future Senior Indebtedness.

Redemption at the Option of the Company.  The
Company may not redeem any of the Securities at its option prior to maturity.

Purchase by the Company at the Option of the Holder Upon a Fundamental
Change.  Subject to the
terms and conditions of the Indenture, the Company shall become obligated, at
the option of the Holder, to purchase the Securities if a Fundamental Change
occurs at any time prior to Stated Maturity at 100% of the Principal Amount
plus accrued and unpaid interest, including Additional Interest, if any, to,
but excluding, the Fundamental Change Purchase Date, which amount will be paid
in cash.

 22
 

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

Payment of Fundamental Change Purchase Price.  If cash sufficient to pay the Fundamental
Change Purchase Price of all Securities or portions thereof to be purchased on
a Fundamental Change Purchase Date is deposited with the Paying Agent on the
Fundamental Change Purchase Date, such Securities will cease to be outstanding
and interest will cease to accrue on such Securities (or portions thereof) on
such Fundamental Change Purchase Date, and the Holder thereof shall have no
other rights as such (other than the right to receive the Fundamental Change
Purchase Price upon surrender of such Security).

Conversion.  Subject to and in compliance with the
provisions of the Indenture (including without limitation the conditions of
conversion of this Security set forth in Article 6 thereof), the Holder hereof
has the right, at its option, to convert the Principal Amount hereof or any
portion of such principal which is $1,000 or a multiple thereof, into, subject
to Section 6.01 of the Indenture, cash and shares of Common Stock, if any, at
the Conversion Rate.  The Conversion Rate
is initially 33.9236 shares of Common Stock per $1,000 Principal Amount of
Securities (equivalent to a conversion price of approximately $29.48), subject
to adjustment in certain events described in the Indenture.  Upon conversion, the Company will pay cash
and shares of Common Stock, if any, based on a Settlement Amount calculated on
a proportionate basis for each day of the applicable Observation Period, as set
forth in the Indenture.  No fractional
shares will be issued upon any conversion, but an adjustment and payment in
cash will be made, as provided in the Indenture, in respect of any fraction of
a share which would otherwise be issuable upon the surrender of any Securities
for conversion.  Securities in respect of
which a Holder is exercising its right to require purchase on a Fundamental
Change Purchase Date may be converted only if such Holder withdraws its
election to exercise such right in accordance with the terms of the Indenture.

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

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

 23
 

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

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

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

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

 24
 

No
reference herein to the Indenture and no provision of this Security or of the
Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the Principal Amount or Fundamental Change
Purchase Price of, and interest, including Additional Interest, if any, on,
this Security at the times, place and rate, and in the coin or currency, herein
prescribed.

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

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

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

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

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

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

 25
 

ASSIGNMENT FORM

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

I
or we assign and transfer this Security to:

 

 

 

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

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

	
  Date:

  	
   

  	
   

  	
  Signed:

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  
	
  Signature
  Guarantee:

  	
   

  	
   

  
								

 

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

 26
 

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

[Check One]

	
  (1)

  	
  £

  	
  to the Company or a subsidiary thereof; or

  
	
   

  	
   

  	
   

  
	
  (2)

  	
  £

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

  
	
   

  	
   

  	
   

  
	
  (3)

  	
  £

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

  

 

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

If
none of the foregoing boxes is checked, the Trustee or Security Registrar shall
not be obligated to register this Security in the name of any Person other than
the Holder hereof unless and until the conditions to any such transfer of
registration set forth herein and in Section 3.10 of the Indenture shall have
been satisfied.

	
  Date:

  	
   

  	
   

  	
  Signed:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Signature
  Guarantee:

  	
   

  	
   

  
								

 

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

 27
 

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

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

	
  Date:

  	
   

  	
   

  	
  Signed:

  	
   

  	
   

  
	
   

  
	
  NOTICE: To be executed by an executive officer.

  

 

 28
 

CONVERSION NOTICE

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

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

$                                                  

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

 

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

 

 

 

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

	
  Date:

  	
   

  	
   

  	
  Signed:

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  
	
  Signature
  Guarantee:

  	
   

  	
   

  
								

 

 

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

 29
 

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

	
  Dated:

  	
   

  	
   

  	
  Wells Fargo Bank, National Association, as 

  
	
  Trustee

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

Section 2.05.  Legend on Restricted
Securities.  During the period
beginning on the Issue Date and ending on the date two years from such date,
any Security, including any Security issued in exchange therefor or in lieu
thereof, shall be deemed a “Restricted Security”
and shall be subject to the restrictions on transfer provided in the legends
set forth on the face of the form of Security in Section 2.02; provided, however, that the term “Restricted
Security” shall not include any Securities as to which restrictions
have been terminated in accordance with Section 3.06.  All Securities shall bear the applicable
legends set forth on the face of the form of Security in Section 2.02.  Except as provided in Section 3.06 and
Section 3.10, the Trustee shall not issue any unlegended Security until it has
received an Officers’ Certificate from the Company directing it to do so.

ARTICLE 3

THE SECURITIES

Section 3.01.  Title and Terms;
Payments.  The aggregate
Principal Amount of Securities that may be authenticated and delivered under
this Indenture is initially limited to $160,000,000, except for Securities
authenticated and delivered upon registration or transfer of, or in exchange
for, or in lieu of, other Securities pursuant to Sections 2.05, 3.05, 3.06,
3.07 or 5.05.

The
Securities shall be known and designated as the “2.50% Convertible
Senior Subordinated Notes due 2014” of the Company.  The Principal Amount shall be payable at
Stated Maturity.

The
Principal Amount of and interest (including any Additional Interest) on Global
Securities registered in the name of The Depository Trust Company or its
nominee shall be paid by wire transfer in immediately available funds to The
Depository Trust Company or its nominee, as applicable, as the registered
Holder of such Global Security.

 30

The
Principal Amount of Physical Securities shall be payable at the Corporate Trust
Office and at any other office or agency maintained by the Company for such
purpose.  Interest (including Additional
Interest, if any) on Physical Securities will be payable (i) to Holders having
an aggregate Principal Amount of $1,000,000 or less of Securities, by check
mailed to such Holders at the address set forth in the Security Register and
(ii) to Holders having an aggregate Principal Amount of more than $1,000,000 of
Securities, either by check mailed to such Holders or, upon application by a
Holder to the Security Registrar not later than the relevant Record Date for
such interest payment, by wire transfer in immediately available funds to such
Holder’s account within the United States, which application shall remain in
effect until the Holder notifies, in writing, the Security Registrar to the
contrary.

If
any Interest Payment Date (other than an Interest Payment Date coinciding with
Stated Maturity or earlier Fundamental Change Purchase Date) of a Security
falls on a day that is not a Business Day, such Interest Payment Date shall be
postponed to the next succeeding Business Day. If Stated Maturity or earlier
Fundamental Change Purchase Date would fall on a day that is not a Business
Day, the required payment of interest, if any, and Principal Amount (and
Additional Interest, if any), shall be made on the next succeeding Business Day
and no interest on such payment shall accrue for the period from and after
Stated Maturity or earlier Fundamental Change Purchase Date to such next
succeeding Business Day.  If a Record
Date is not a Business Day, the Record Date will be unaffected.

Section 3.02.  Ranking.  The Securities constitute the
Senior Subordinated Indebtedness of the Company, as set forth in Article 9
hereof.

Section 3.03.  Denominations.  The Securities shall be issuable
only in registered form without coupons and in denominations of $1,000 and any
multiple of $1,000 above that amount.

Section 3.04.  Execution, Authentication,
Delivery and Dating.  The
Securities shall be executed on behalf of the Company by its Chief Executive
Officer, its President, its Chief Financial Officer or its Treasurer.

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

At
any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities executed by the Company to the
Trustee for authentication, together with a Company Order for the authentication

 31
 

and delivery of such Securities.  The Company Order shall specify the amount of
Securities to be authenticated, and shall further specify the amount of such
Securities to be issued as a Global Security or as Physical Securities.  The Trustee in accordance with such Company
Order shall authenticate and deliver such Securities as in this Indenture
provided and not otherwise.

Each
Security shall be dated the date of its authentication.

No
Security shall be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose unless there appears on such Security a certificate
of authentication substantially in the form provided for herein executed by the
Trustee by manual signature, and such certificate upon any Security shall be
conclusive evidence, and the only evidence, that such Security has been duly
authenticated and delivered hereunder.

Section 3.05.  Temporary Securities.  Pending the preparation of
definitive Securities, the Company may execute, and upon Company Order the
Trustee shall authenticate and deliver, temporary Securities that are printed,
lithographed, typewritten, mimeographed or otherwise produced, in any
authorized denomination, substantially of the tenor of the definitive
Securities in lieu of which they are issued and with such appropriate
insertions, omissions, substitutions and other variations as the officers
executing such Securities may determine, as evidenced by their execution of
such Securities; provided, that any such temporary
Securities shall bear legends on the face of such Securities as set forth in
Section 2.02.

If
temporary Securities are issued, the Company will cause definitive Securities
to be prepared without unreasonable delay. 
After the preparation of definitive Securities, the temporary Securities
shall be exchangeable for definitive Securities upon surrender of the temporary
Securities at any office or agency of the Company designated pursuant to
Section 4.02, without charge to the Holder. 
Upon surrender for cancellation of any one or more temporary Securities,
the Company shall execute and the Trustee shall authenticate and deliver in
exchange therefor a like Principal Amount of Physical Securities of authorized
denominations.  Until so exchanged, the temporary
Securities shall in all respects be entitled to the same benefits under this
Indenture as Physical Securities.

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

(a)                        The
Company shall cause to be kept at the applicable Corporate Trust Office of the
Trustee a register (the register maintained in such office and in any other
office or agency designated pursuant to Section 4.02 being herein sometimes
collectively referred to as the “Security Register”)
in which, subject to such reasonable regulations as it may prescribe, the
Company shall provide for

 32
 

the registration of Securities and of transfers of
Securities.  The Trustee is hereby
appointed “Security Registrar” (the “Security Registrar”)
for the purpose of registering Securities and transfers of Securities as herein
provided.

Upon
surrender for registration of transfer of any Security at an office or agency
of the Company designated pursuant to Section 4.02 for such purpose, the
Company shall execute, and the Trustee shall authenticate and deliver, in the
name of the designated transferee or transferees, one or more new Securities of
any authorized denominations and of a like aggregate Principal Amount and
tenor, each such Security bearing such restrictive legends as may be required
by this Indenture (including Section 2.02, 2.05, 3.06(b) and 3.10).

At
the option of the Holder and subject to the other provisions of this Section
3.06 and to Section 3.10, Securities may be exchanged for other Securities of
any authorized denominations and of a like aggregate Principal Amount and
tenor, upon surrender of the Securities to be exchanged at such office or
agency.  Whenever any Securities are so
surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and deliver, the Securities which the Holder making the exchange
is entitled to receive.

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

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

Except
as provided in the following sentence and in Section 3.10, all Securities
originally issued hereunder and all Securities issued upon registration of
transfer or exchange or replacement thereof shall be Restricted Securities and
shall bear the legends required by Sections 2.02 and 2.05, unless the Company
shall have delivered to the Trustee (and the Security Registrar, if other than
the Trustee) an Officers’ Certificate stating that the Security is not a
Restricted Security and may be issued without such legend thereon.  Securities that are issued upon registration
of transfer of, or in exchange for, Securities that are not Restricted
Securities shall not be Restricted Securities and shall not bear such legend.

 33
 

No
service charge shall be made for any registration of transfer or exchange of
Securities, but the Company and the Security Registrar may require payment of a
sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 3.05 not involving any
transfer.

Neither
the Company nor the Security Registrar shall be required to exchange or
register a transfer of any Security (i) that has been surrendered for
conversion or (ii) as to which a Fundamental Change Purchase Notice has been
delivered and not withdrawn, except that where such Fundamental Change Purchase
Notice provides that such Security is to be purchased only in part, the Company
and the Security Registrar shall be required to exchange or register a transfer
of the portion thereof not to be purchased.

(b)                       Beneficial
ownership of every Restricted Security shall be subject to the restrictions on
transfer provided in the legends required to be set forth on the face of each
Restricted Security pursuant to Sections Section 2.02 and 2.05, unless such
restrictions on transfer shall be terminated in accordance with this Section
3.06(b) or Section 3.10.  The Holder of
each Restricted Security, by such Holder’s acceptance thereof, agrees to be
bound by such restrictions on transfer.

The
restrictions imposed by this Section 3.06 and by Section 2.02, 2.05 and 3.10
upon the transferability of any particular Restricted Security shall cease and
terminate upon delivery by the Company to the Trustee of an Officers’
Certificate stating that such Restricted Security has been sold pursuant to an
effective Resale Registration Statement under the Securities Act or transferred
in compliance with Rule 144 under the Securities Act (or any successor
provision thereto).  Any Restricted
Security as to which the Company has delivered to the Trustee an Officers’
Certificate stating that such restrictions on transfer shall have expired in
accordance with their terms or shall have terminated may, upon surrender of
such Restricted Security for exchange to the Security Registrar in accordance
with the provisions of this Section 3.06, be exchanged for a new Security, of
like tenor and aggregate Principal Amount, which shall not bear the restrictive
legends required by Section 2.02 and 2.05. 
The Company shall inform the Trustee in writing of the effective date of
any resale registration statement registering the Securities under the
Securities Act.  The Trustee shall not be
liable for any action taken or omitted to be taken by it in good faith in
accordance with the aforementioned resale registration statement.

As
used in the preceding two paragraphs of this Section 3.06, the term “transfer” encompasses any sale, pledge, transfer or other
disposition of any Restricted Security.

 34
 

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

Section 3.07.  Mutilated, Destroyed, Lost and
Stolen Securities.  If any
mutilated Security is surrendered to the Trustee, the Company shall execute and
the Trustee shall authenticate and deliver in exchange therefor a new Security
of like tenor and Principal Amount and bearing a number not contemporaneously
outstanding.

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

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

Upon
the issuance of any new Security under this Section 3.07, the Company may
require payment by the Holder of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee) connected therewith.

Every
new Security issued pursuant to this Section 3.07 in lieu of any destroyed,
lost or stolen Security shall constitute an original additional contractual
obligation of the Company, whether or not the destroyed, lost or stolen
Security shall be at any time enforceable by anyone, and shall be entitled to
all the benefits of this Indenture equally and proportionately with any and all
other Securities duly issued hereunder.

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

Section 3.08.  Persons Deemed Owners.  Prior to due presentment of a
Security for registration of transfer, the Company, the Trustee, the Security
Registrar and any agent of the Company, the Trustee or the Security Registrar

 35
 

may treat the Person in whose name such Security is
registered as the owner of such Security for the purpose of receiving payment
of the principal of such Security and for all other purposes whatsoever,
whether or not such Security be overdue, and neither the Company, the Trustee,
the Security Registrar nor any agent of the Company, the Trustee or the
Security Registrar shall be affected by notice to the contrary.

Section 3.09.  Book-Entry Provisions for
Global Securities.

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

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

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

 36
 

reliance on Rule 144A shall have the right, subject to
applicable law, to request that such Securities be exchanged for interests in
the applicable Global Security.

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

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

(e)                        Any
Physical Security constituting a Restricted Security delivered in exchange for
an interest in the Global Security pursuant to paragraph (c) or (d) above
shall, except as otherwise provided by paragraph (c) of Section 3.10, bear the
legend regarding transfer restrictions applicable to the Physical Securities
set forth on the face of the form of Security in Section 2.02.

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

Section 3.10.  Cancellation and Transfer
Provisions.  The Company at
any time may deliver to the Trustee for cancellation any Securities previously
authenticated and delivered hereunder that the Company may have acquired in any
manner whatsoever, and may deliver to the Trustee for cancellation any
Securities previously authenticated hereunder which the Company has not issued
and sold.  The Trustee shall cancel and
dispose of all Securities surrendered for registration of transfer, exchange,
payment, purchase, repurchase, conversion (pursuant to Article 6 hereof) or
cancellation in accordance with its customary practices.  If the Company shall acquire any of the
Securities, such acquisition shall not operate as a redemption or satisfaction
of the indebtedness represented by such Securities unless and until the same
are delivered to the Trustee for cancellation. 
The Company may not issue new Securities to replace Securities it has
paid in full or delivered to the Trustee for cancellation.

 37
 

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

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

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

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

(c)                        General.  By its
acceptance of any Security bearing the legends required by Section 2.02 and
2.05, each Holder of such a Security acknowledges

 38
 

the restrictions on transfer of such Security set
forth in this Indenture and in such legends and agrees that it will transfer
such Security only as provided in this Indenture.

The
Security Registrar shall retain, in accordance with its customary procedures,
copies of all letters, notices and other written communications received
pursuant to this Section 3.10.  The
Company shall have the right to inspect and make copies of all such letters,
notices or other written communications at any reasonable time upon the giving
of reasonable written notice to the Security Registrar.

Section 3.11.  CUSIP Numbers.  In issuing the Securities, the
Company may use “CUSIP” numbers (if then generally in use), and, if so, the
Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to
Holders; provided that any such notice may state that no representation is made
as to the correctness of such numbers either as printed on the Securities or as
contained in any notice of a redemption and that reliance may be placed only on
the other identification numbers printed on the Securities, and any such
redemption shall not be affected by any defect in or omission of such
numbers.  The Company will promptly
notify the Trustee of any change in the “CUSIP” numbers.

ARTICLE 4

PARTICULAR COVENANTS OF THE COMPANY

Section 4.01.  Payment of Principal and
Interest.  The Company
covenants and agrees that it shall duly and punctually pay or cause to be paid
the principal of, and interest on, each of the Securities at the places, at the
respective times and in the manner provided herein and in the Securities.

Section 4.02.  Maintenance of Office or
Agency.  The Company shall
maintain an office or agency where the Securities may be surrendered for
registration of transfer or exchange or for presentation for payment or for
conversion and where notices and demands to or upon the Company in respect of
the Securities and this Indenture may be served.  The Company shall give prompt written notice
to the Trustee of the location, and any change in the location, of such office
or agency not designated or appointed by the Trustee.  If at any time the Company shall fail to
maintain any such required office or agency or shall fail to furnish the Trustee
with the address thereof, such presentations, surrenders, notices and demands
may be made or served at the Corporate Trust Office, and the Company hereby
appoints the Trustee as its agent to receive all such presentations,
surrenders, notices and demands.

 39
 

The
Company may also from time to time designate co-registrars and one or more
offices or agencies where the Securities may be presented or surrendered for
any or all such purposes and may from time to time rescind such designations.

The
Company will give prompt written notice of any such designation or rescission
and of any change in the location of any such other office or agency.

The
Company hereby initially designates the Trustee as paying agent, Security
Registrar, Custodian and conversion agent at the Corporate Trust Office.

So
long as the Trustee is the Security Registrar, the Trustee agrees to mail, or
cause to be mailed, the notices set forth in Section 10.11(a) and the third
paragraph of Section 10.12.  If
co-registrars have been appointed in accordance with this Section, the Trustee
shall mail such notices only to the Company and the Holders of Securities it
can identify from its records.

Section 4.03.  Provisions as to Paying Agent.

(a)                        If the
Company shall appoint a Paying Agent other than the Trustee, or if the Trustee
shall appoint such a Paying Agent, the Company will cause 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 4.03:

(i)                                     that
it will hold all sums held by it as such agent for the payment of the principal
of or interest, including Additional Interest, if any, on the Securities
(whether such sums have been paid to it by the Company or by any other obligor
on the Securities) in trust for the benefit of the Holders of the Securities;

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

(iii)                               that
at any time during the continuance of an Event of Default, upon request of the
Trustee, it will forthwith pay to the Trustee all sums so held in trust.

The
Company shall, on or before each due date of the principal of or interest,
including Additional Interest, if any, on the Securities, deposit with the
paying agent a sum (in funds which are immediately available on the due date
for such payment) sufficient to pay such principal or interest, and (unless
such paying agent is the Trustee) the Company will promptly notify the Trustee
of any failure to take such action; provided, however, that if such deposit is made on the due

 40
 

date, such deposit shall be received by the paying
agent by 11:00 a.m. New York City time, on such date.

(b)                       If the
Company shall act as its own Paying Agent, it will, on or before each due date
of the principal of or interest on the Securities, set aside, segregate and
hold in trust for the benefit of the Holders of the Securities a sum sufficient
to pay such principal or interest, including Additional Interest, if any, so
becoming due and will promptly notify the Trustee of any failure to take such
action and of any failure by the Company (or any other obligor under the
Securities) to make any payment of the principal of or interest, including
Additional Interest, if any, on the Securities when the same shall become due
and payable.

(c)                        Anything
in this Section 4.03 to the contrary notwithstanding, the Company may, at any
time, for the purpose of obtaining a satisfaction and discharge of this
Indenture, or for any other reason, pay or cause to be paid to the Trustee all
sums held in trust by the Company or any paying agent hereunder as required by
this Section 4.03, such sums to be held by the Trustee upon the trusts herein
contained and upon such payment by the Company or any paying agent to the
Trustee, the Company or such paying agent shall be released from all further
liability with respect to such sums.

(d)                       Anything in
this Section 4.03 to the contrary notwithstanding, the agreement to hold sums
in trust as provided in this Section 4.03 is subject to Section 12.03 and
Section 12.04.

The
Trustee shall not be responsible for the actions of any other paying agents
(including the Company if acting as its own paying agent) and shall have no
control of any funds held by such other paying agents.

Section 4.04.  Rule 144A Information
Requirement.  Within the
period prior to the expiration of the holding period applicable to sales
thereof under Rule 144(k) under the Securities Act (or any successor
provision), the Company covenants and agrees that it shall, during any period
in which it is not subject to Section 13 or 15(d) under the Exchange Act, make
available to any Holder or beneficial holder of Securities or any Common Stock
issued upon conversion thereof which continue to be Restricted Securities in
connection with any sale thereof and any prospective purchaser of Securities or
such Common Stock designated by such Holder or beneficial holder, the
information required pursuant to Rule 144A(d)(4) under the Securities Act upon
the request of any Holder or beneficial holder of the Securities or such Common
Stock, all to the extent required from time to time to enable such Holder or
beneficial holder to sell its Securities or Common Stock without registration
under the Securities Act within the limitation of the exemption provided by
Rule 144A, as such rule may be amended from time to time.

 41
 

Section 4.05.  Resale of Certain
Securities.  During the period
beginning on the date of issuance of the Securities and ending on the date that
is two years thereafter, the Company shall not, and shall not permit any of its
“affiliates” within its “control” (each
as defined under Rule 144 under the Securities Act or any successor provision
thereto) to, resell any Securities which constitute “restricted
securities” under Rule 144 that have been reacquired by any of
them.  The Trustee shall have no
responsibility in respect of the Company’s performance of its agreement in the
preceding sentence.

Section 4.06.  Commission Filings.  Subject to the requirements of
§314(a) of the Trust Indenture Act, the Company will deliver to the Trustee
within 15 days after the Company is required to file the same with the
Commission, copies of the quarterly and annual reports and of the information,
documents and other reports (or copies of such portions of any of the foregoing
as the Commission may prescribe) which the Company is required to file with the
Commission pursuant to Section 13 or 15(d) of the Exchange Act, and shall
otherwise comply with the requirements of § 314(a) of the Trust Indenture
Act.  To the extent any such information,
documents and reports are filed by the Company electronically on the Commission’s
Electronic Data Gathering and Retrieval System (or any successor system),
notice thereof shall be delivered promptly to the Trustee, upon which such
information, documents and reports shall be deemed delivered to the Trustee.

Section 4.07.  Book-Entry System.  If the Securities cease to trade
in the Depositary’s book-entry settlement system, the Company covenants and
agrees that it shall use reasonable efforts to make such other book-entry
arrangements that it determines are reasonable for the Securities.

Section 4.08.  Additional Interest
under the Registration Rights Agreement.  If at any time Additional Interest
becomes payable by the Company pursuant to the Registration Rights Agreement,
the Company shall promptly deliver to the Trustee a certificate to that effect
and stating (i) the amount of such Additional Interest that is payable and (ii)
the date on which such Additional Interest is payable pursuant to the terms of
the Registration Rights Agreement. 
Unless and until a Responsible Officer of the Trustee receives such a
certificate, the Trustee may assume without inquiry that no Additional Interest
is payable.  If the Company has paid
Additional Interest directly to the Persons entitled to such Additional
Interest, the Company shall deliver to the Trustee a certificate setting forth
the particulars of such payment.

Section 4.09.  Compliance Certificate.  The Company shall deliver to the
Trustee, within 120 days after the end of each fiscal year of the Company, an
Officers’ Certificate, stating whether or not to the knowledge of the signers
thereof the Company is in default in the performance and observance of any of
the terms, provisions, covenants and conditions of this Indenture (without
regard to

 42
 

any period of grace or requirement of notice provided
hereunder) or has been in default during the previous year and, if the Company
shall be in default, or shall have been in default during the previous year,
specifying all such defaults and the nature and the status thereof of which the
signers may have knowledge.

The
Company shall deliver to the Trustee, as soon as possible and in any event
within 30 days after the Company becomes aware of the occurrence of any Event
of Default or an event which, with notice or the lapse of time or both, would
constitute an Event of Default, an Officers’ Certificate setting forth the
details of such Event of Default or Default, its status and the action which
the Company proposes to take with respect thereto.

Any
notice required to be given under this Section 4.09 shall be delivered to a
Responsible Officer of the Trustee at its Corporate Trust Office.

ARTICLE 5

FUNDAMENTAL CHANGES AND PURCHASES THEREUPON

Section 5.01.  Purchase at Option of Holders
Upon a Fundamental Change.

(a)                        Generally.  If a Fundamental
Change occurs at any time prior to the Maturity of the Securities, then each
Holder shall have the right, at such Holder’s option, to require the Company to
purchase for cash any or all of such Holder’s Securities, or any portion of the
Principal Amount thereof, that is equal to $1,000 or a multiple of $1,000, on a
date specified by the Company that is no later than the 30th calendar day following the date of the
Fundamental Change Company Notice (as defined below) (the “Fundamental
Change Purchase Date”), at a purchase price equal to 100% of the
Principal Amount thereof, together with accrued and unpaid interest thereon,
including Additional Interest, if any, to, but excluding, the Fundamental
Change Purchase Date (the “Fundamental Change
Purchase Price”); provided, however, that if a Fundamental Change Purchase Date is
between a Record Date and the Interest Payment Date related thereto, interest,
including Additional Interest, if any, for the full interest period to such
Interest Payment Date and payable in respect of such Interest Payment Date
(irrespective of the actual Fundamental Change Purchase Date) shall be payable
to the Holders of record as of the corresponding Record Date.

Purchases
of Securities under this Section 5.01 shall be made, at the option of the
Holder thereof, upon:

(i)                                     delivery
to the Paying Agent by a Holder, prior to 10:00 a.m., New York City time, on or
before the Business Day immediately preceding the Fundamental Change Purchase
Date, of a duly completed

 43
 

notice (the “Fundamental Change Purchase Notice”) in the form set forth
on the reverse of the Securities or otherwise specifying:

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

(B)                                     the
portion of the Principal Amount of Securities to be purchased, which must be
$1,000 or a multiple thereof, provided that
the remaining Principal Amount of Securities is an authorized denomination; and

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

(ii)                                  delivery
or book-entry transfer of the Securities to the Trustee (or other Paying Agent
appointed by the Company) (together with all necessary endorsements) at any
time prior to 10:00 a.m., New York City time, on or before the Business Day
immediately preceding the Fundamental Change Purchase Date, at the applicable
Corporate Trust Office of the Trustee (or other Paying Agent appointed by the
Company), such delivery being a condition to receipt by the Holder of the Fundamental
Change Purchase Price therefor; provided that
such Fundamental Change Purchase Price shall be so paid pursuant to this
Section 5.01 only if the Securities so delivered to the Trustee (or other
Paying Agent appointed by the Company) shall conform in all respects to the
description thereof in the related Fundamental Change Purchase Notice.

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

Notwithstanding
anything herein to the contrary, any Holder delivering to the Trustee (or other
Paying Agent appointed by the Company) the Fundamental Change Purchase Notice
contemplated by this Section 5.01 shall have the right to withdraw such
Fundamental Change Purchase Notice at any time prior to 10:00 a.m., New York
City time, on the Business Day immediately preceding the Fundamental Change
Purchase Date by delivery of a written notice of withdrawal to the Trustee (or
other Paying Agent appointed by the Company) in accordance with Section 5.03
below.

 44
 

The
Company will not be required to make an offer to purchase the Securities upon a
Fundamental Change if a third party makes the offer in the manner, at the
times, and otherwise in compliance with the requirements set forth in this
Article 5 applicable to an offer by the Company to purchase the Securities upon
a Fundamental Change and such third party purchases all Securities validly
tendered and not withdrawn upon such offer.

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

(b)                       Fundamental Change Company Notice.  On or before the 15th day after the occurrence of a Fundamental
Change, the Company shall provide to all Holders of record of the Securities
and the Trustee and Paying Agent a notice (the “Fundamental
Change Company Notice”) of the occurrence of such Fundamental Change
and of the purchase right at the option of the Holders arising as a result
thereof.  Such mailing shall be by first
class mail.  Simultaneously with
providing such Fundamental Change Company Notice, the Company shall publish a
notice containing the information included therein once in a newspaper of
general circulation in The City of New York or publish such information on the
Company’s website or through such other public medium as the Company may use at
such time.

Each
Fundamental Change Company Notice shall specify:

(i)                                     the
events causing a Fundamental Change;

(ii)                                  the
date of the Fundamental Change;

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

(iv)                              the
Fundamental Change Purchase Price;

(v)                                 the
Fundamental Change Purchase Date (which shall be no earlier than 15 days after
the date of the Fundamental Change Company Notice);

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

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

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

 45

be
converted only if the Holder withdraws the Fundamental Change Purchase Notice
in accordance with Section 5.03; and

(ix)                                the
procedures that Holders must follow to require the Company to purchase their
Securities.

No failure of the Company to give the foregoing
notices and no defect therein shall limit the Securityholders’ purchase rights
or affect the validity of the proceedings for the purchase of the Securities
pursuant to this Section 5.01.

(c)                        No Payment During Events of Default.  There shall be no purchase of any Securities
pursuant to this Section 5.01 if there has occurred (prior to, on or after, as
the case may be, the giving, by the Holders of such Securities, of the required
Fundamental Change Purchase Notice) and is continuing an Event of Default
(other than a default that is cured by the payment of the Fundamental Change
Purchase Price of the Securities).  The
Paying Agent will promptly return to the respective Holders thereof any
Securities (i) with respect to which a Fundamental Change Purchase Notice has
been withdrawn in compliance with this Indenture, or (ii) held by it during the
continuance of an Event of Default (other than a default that is cured by the
payment of the Fundamental Change Purchase Price with respect to such
Securities) in which case, upon such return, the Fundamental Change Purchase
Notice with respect thereto shall be deemed to have been withdrawn.

(d)                       Payment of Fundamental Change Purchase Price.  The Securities to be purchased pursuant to
this Section 5.01 shall be paid for in cash.

Section 5.02.  Effect of Fundamental Change Purchase
Notice.  Upon receipt by the
Paying Agent of the Fundamental Change Purchase Notice specified in Section
5.01(a), the Holder of the Security in respect of which such Fundamental Change
Purchase Notice was given shall (unless such Fundamental Change Purchase Notice
is withdrawn as specified in the following two paragraphs) thereafter be
entitled to receive solely the Fundamental Change Purchase Price with respect
to such Security.  Such Fundamental
Change Purchase Price shall be paid to such Holder, subject to receipt of funds
by the Paying Agent, promptly following the later of (x) the Fundamental Change
Purchase Date with respect to such Security (provided
the conditions in Section 5.01(a) have been satisfied) and (y) the time of
book-entry transfer or the delivery of such Security to the Paying Agent by the
Holder thereof in the manner required by Section 5.01(b).

Section 5.03.  Withdrawal of Fundamental Change Purchase
Notice.

(a)                        A Fundamental
Change Purchase Notice may be withdrawn (in whole or in part) by means of a
written notice of withdrawal delivered to the

 46
 

Paying Agent in accordance with the Fundamental Change
Company Notice at any time prior to 10:00 a.m., New York City time, on the
Business Day immediately preceding the Fundamental Change Purchase Date,
specifying:

(i)                                     the
name of the Holder;

(ii)                                  the
Principal Amount of the Securities with respect to which such notice of
withdrawal is being submitted, which must be an integral multiple of $1,000;

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

(iv)                              the
Principal Amount of such Securities that remains subject to the original
Fundamental Change Purchase Notice, which portion must be in Principal Amounts
of $1,000 or a multiple of $1,000;

provided, however,
that if Physical Securities have not been issued, the notice must comply with
appropriate procedures of the Depositary.

Section 5.04.  Deposit of Fundamental Change Purchase Price.  Prior to 10:00 a.m. (local time in
The City of New York) on the Fundamental Change Purchase Date, subject to
extension to comply with applicable law, the Company shall deposit with the
Trustee or with the Paying Agent (or, if the Company or a Subsidiary or an
Affiliate of either of them is acting as the Paying Agent, shall segregate and
hold in trust as provided herein) an amount of money (in immediately available
funds if deposited on such Business Day) sufficient to pay the Fundamental
Change Purchase Price, of all the Securities or portions thereof that are to be
purchased as of the Fundamental Change Purchase Date.  The Company shall promptly notify the Trustee
in writing of the amount of any deposits of cash made pursuant to this Section
5.04.  If the Paying Agent holds cash
sufficient to pay the Fundamental Change Purchase Price of any Security for
which a Fundamental Change Purchase Notice has been tendered and not withdrawn
in accordance with this Indenture as of the Business Day following the Fundamental
Change Purchase Date, then effective on the Fundamental Change Purchase Date,
(a) such Security shall cease to be outstanding and interest, including
Additional Interest, if any, will cease to accrue thereon (whether or not
book-entry transfer of such Security is made or such Security is delivered to
the Paying Agent) and (b) all other rights of the Holder in respect thereof
will terminate (other than the right to receive the Fundamental Change Purchase
Price and previously accrued and unpaid interest, including Additional
Interest, if any, upon delivery or book-entry transfer of such Security, or
interest payable on the related Interest Payment Date, if the Fundamental
Change Purchase Date occurs between the Record Date and such Interest Payment Date,
as applicable).

 47
 

Section 5.05.  Securities Purchased in Whole or in
Part.  Any Security that is to
be purchased, whether in whole or in part, shall be surrendered at the office
of the Paying Agent (with, if the Company or the Trustee so requires, due
endorsement by, or a written instrument of transfer in form satisfactory to the
Company and the Trustee duly executed by, the Holder thereof or such Holder’s
attorney duly authorized in writing) and the Company shall execute and the
Trustee shall authenticate and deliver to the Holder of such Security, without
service charge, a new Security or Securities, of any authorized denomination as
requested by such Holder in aggregate Principal Amount equal to, and in
exchange for, the portion of the Principal Amount of the Security so
surrendered which is not purchased.

Section 5.06.  Covenant to Comply With Securities Laws Upon
Purchase of Securities.  In
connection with any offer to purchase Securities under Section 5.01 (provided that such offer or purchase constitutes
an “issuer tender offer” for purposes of Rule 13e-4 (which term, as used
herein, includes any successor provision thereto) under the Exchange Act at the
time of such offer or purchase), the Company shall (i) comply with Rule 13e-4
and Rule 14e-1 under the Exchange Act, (ii) file the related Schedule TO (or
any successor schedule, form or report) under the Exchange Act, and (iii)
otherwise comply with all federal and state securities laws so as to permit the
rights and obligations under Section 5.01 to be exercised in the time and in
the manner specified in Section 5.01.

Section 5.07.  Repayment to the Company.  The Trustee and the Paying Agent
shall return to the Company any cash that remains unclaimed, together with
interest, including Additional Interest, if any, or dividends, if any, thereon,
held by them for the payment of the Fundamental Change Purchase Price; provided that to the extent that the
aggregate amount of cash deposited by the Company pursuant to Section 5.04
exceeds the aggregate Fundamental Change Purchase Price of the Securities or
portions thereof which the Company is obligated to purchase as of the
Fundamental Change Purchase Date, then as soon as practicable following the
Fundamental Change Purchase Date, the Trustee or the Paying Agent, as the case
may be, shall return any such excess to the Company.

ARTICLE 6

CONVERSION

Section 6.01.  Right to
Convert.

(a)                        Subject to
and upon compliance with the provisions of this Indenture, each Holder shall
have the right, at such Holder’s option, to convert the Principal Amount of any
such Securities, or any portion of such Principal Amount which is $1,000 or a
multiple of $1,000 thereof at the Conversion Rate then in effect, (x) on or
after December 1, 2013 through the close of business on the third

 48
 

Business Day immediately preceding Stated Maturity and
(y) prior to the close of business on the Business Day immediately preceding
December 1, 2013, but only upon the satisfaction of any of the following
conditions and only during the periods set forth below:

(i)                                     A
Holder may surrender all or a portion of its Securities for conversion during
any fiscal quarter (and only during such fiscal quarter) commencing after March
31, 2007, if the Last Reported Sale Price of the Common Stock for at least 20 Trading
Days (whether or not consecutive) during the period of 30 consecutive Trading
Days ending on the last Trading Day of the immediately preceding fiscal quarter
is greater than or equal to 130% of the Conversion Price in effect on each
applicable Trading Day.

(ii)                                  A
Holder may surrender its Securities for conversion during the five Business Day
period after any 10 consecutive Trading Day period (the “Measurement
Period”) in which the Trading Price per $1,000 Principal Amount of
Securities, as determined following a request by a Holder in accordance with
the procedures set forth in this Section 6.01(a)(ii), for each day of such
period was less than 98% of the product of the Last Reported Sale Price of the
Common Stock and the applicable Conversion Rate.  In connection with any conversion in
accordance with this Section 6.01(a)(ii), the Bid Solicitation Agent shall have
no obligation to determine the Trading Price of the Securities unless requested
by the Company; and the Company shall have no obligation to make such request
unless a Holder provides the Company with reasonable evidence that the Trading
Price per $1,000 Principal Amount of Securities would be less than 98% of the
product of the Last Reported Sale Price of the Common Stock and the applicable
Conversion Rate.  Promptly after
receiving such evidence, the Company shall instruct the Bid Solicitation Agent
to determine the Trading Price of the Securities beginning on the next Trading
Day and on each successive Trading Day until the Trading Price per $1,000
Principal Amount of Securities is greater than or equal to 98% of the product
of the Last Reported Sale Price of the Common Stock and the applicable
Conversion Rate.  If the Company does not
so instruct the Bid Solicitation Agent to obtain bids when required, the
Trading Price per $1,000 Principal Amount of Securities will be deemed to be
less than 98% of the product of the last reported sale price on each day the
Company fails to do so.

(iii)                               In the event that the
Company elects to:

(A)                                        issue
to all or substantially all holders of Common Stock rights entitling them to
purchase, for a period expiring within 60 days after the date of the
distribution, shares of

 49
 

Common
Stock at less than the average of the Last Reported Sale Prices of a share of
Common Stock for the 10 consecutive Trading-Day period ending on the Business
Day preceding the announcement of such issuance; or

(B)                                          distribute
to all or substantially all holders of Common Stock assets, debt securities or
rights to purchase securities of the Company, which distribution has a per
share value, as reasonably determined by the Company’s Board of Directors,
exceeding 10% of the Last Reported Sale Price of the Common Stock on the
Business Day preceding the declaration date for such distribution,

then, in each
case, the Company shall notify the Holders, in the manner provided in Section
1.06, at least 25 Scheduled Trading Days prior to the Ex-Date for such
distribution.  Once the Company has given
such notice, Holders may surrender Securities for conversion at any time until
the earlier of 5:00 p.m., New York City time, on the Business Day immediately
prior to such Ex-Date or the Company’s announcement that such distribution will
not take place, even if the Securities are not otherwise convertible at such
time.

(iv)                              (A)
If the Company is party to a transaction described in clause (2) of the
definition of Fundamental Change (without, for the avoidance of doubt, giving
effect to the exception in the last paragraph of the definition thereof
relating to Publicly Traded Securities), the Company shall notify Holders, in
the manner provided in Section 1.06, at least 30 Scheduled Trading Days prior
to the anticipated effective date for such transaction.  Once the Company has given such notice,
Holders may surrender Securities for conversion at any time until 15 calendar
days after the actual effective date of such transaction (or, if such
transaction also constitutes a Fundamental Change, the related Fundamental
Change Purchase Date).

(B) In addition,
if a Fundamental Change of the type described in clauses (1) and (4) in the
definition thereof occurs, Holders may surrender all or a portion of their
Securities for conversion at any time beginning on the actual effective date of
such Fundamental Change until and including the date that is 30 calendar days
after the actual effective date of such transaction or, if later, until the
related Fundamental Change Purchase Date.

(b)                       Notwithstanding
the foregoing, a Security in respect of which a Holder has delivered a Fundamental
Change Purchase Notice exercising such Holder’s option to require the Company
to purchase such Security may be

 50
 

surrendered for conversion only if such notice of
exercise is withdrawn in accordance with Article 5 hereof prior to 10:00 a.m.,
New York City time, on the Business Day immediately preceding the Fundamental
Change Purchase Date.

Section 6.02.  Conversion Procedure.

(a)                        Each
Security shall be convertible at the office of the Conversion Agent.

(b)                       In order to
exercise the conversion privilege with respect to any beneficial interest in a
Global Security, the Holder must complete the appropriate instruction form for
conversion pursuant to the Depositary’s book-entry conversion program, furnish
appropriate endorsements and transfer documents if required by the Company or
the Trustee or Conversion Agent, and pay the funds, if any, required by Section
6.03(d) and any transfer taxes if required pursuant to Section 6.07 and the
Trustee or Conversion Agent must be informed of the conversion in accordance
with customary practice of the Depositary. 
In order to exercise the conversion privilege with respect to any
Securities in certificated form that are not Global Securities, the Holder of
any such Securities to be converted, in whole or in part, shall:

(i)                                     complete
and manually sign the conversion notice provided on the back of the Security
(the “Conversion Notice”) or a
facsimile of the conversion notice and deliver such Conversion Notice, which is
irrevocable, to the Conversion Agent;

(ii)                                  surrender
the Security to the Conversion Agent;

(iii)                               if required, furnish
appropriate endorsements and transfer documents;

(iv)                              if
required, pay any transfer or similar taxes; and

(v)                                 if
required, make any payment required under Section 6.03(d).

The date on which the Holder satisfies all of the
applicable requirements set forth above is the “Conversion Date.”  The
Trustee will, as promptly as possible, and in any event within two (2) Business
Days, provide the Company with notice of any conversion exercises by Holders of
which a Responsible Officer becomes aware.

(c)                        Each
Conversion Notice shall state the name or names (with address or addresses) in
which any certificate or certificates for shares of Common Stock which shall be
issuable on such conversion shall be issued. 
All such Securities surrendered for conversion shall, unless the shares
issuable on conversion are to

 51
 

be issued in the same name as the registration of such
Securities, be duly endorsed by, or be accompanied by instruments of transfer
in form satisfactory to the Company duly executed by, the Holder or his duly
authorized attorney.

(d)                       On the
third Business Day immediately following the last day of the Observation
Period, subject to compliance with any restrictions on transfer if shares
issuable on conversion are to be issued in a name other than that of the Holder
(as if such transfer were a transfer of the Securities (or portion thereof) so
converted), the Company shall issue and shall deliver to such Holder at the
office of the Conversion Agent, a check or cash and a certificate or
certificates for the number of full shares of Common Stock issuable in
accordance with the provisions of this Article 6, if applicable.  In case any Securities of a denomination
greater than $1,000 shall be surrendered for partial conversion, the Company
shall execute and the Trustee shall authenticate and deliver to the Holder of
the Securities so surrendered, without charge to him, new Securities in
authorized denominations in an aggregate Principal Amount equal to the unconverted
portion of the surrendered Securities.

Each conversion shall be deemed to have been effected
as to any such Securities (or portion thereof) on the date on which the
requirements set forth above in this Section 6.02 have been satisfied as to
such Securities (or portion thereof), and the person in whose name any
certificate or certificates for shares of Common Stock shall be issuable upon
such conversion shall be deemed to have become on said date the Holder of
record of the shares represented thereby; provided,
however, that in case of any such surrender on any date when the
stock transfer books of the Company shall be closed, the person or persons in
whose name the certificate or certificates for such shares are to be issued
shall be deemed to have become the record Holder thereof for all purposes on
the next day on which such stock transfer books are open, but such conversion
shall be at the Conversion Price in effect on the date upon which such
Securities shall be surrendered.

(e)                        Upon the
conversion of an interest in Global Securities, the Trustee (or other
Conversion Agent appointed by the Company) shall make a notation on such Global
Securities as to the reduction in the Principal Amount represented thereby.  The Company shall notify the Trustee in
writing of any conversions of Securities effected through any Conversion Agent
other than the Trustee.

(f)                          Each
stock certificate representing Common Stock issued upon conversion of the
Securities that are Restricted Securities shall bear the legend in substantially
the form of Exhibit B hereto.

 52
 

Section 6.03.  Payments Upon Conversion.

(a)                        Upon any
conversion of any Security, the Company shall deliver to converting Holders, in
respect of each $1,000 Principal Amount of Securities being converted, a “Settlement Amount” equal to the sum of the Daily Settlement
Amounts for each of the 20 Trading Days during the applicable Observation
Period for such Security.

(b)                       The “Daily Settlement Amount” for each of the 20 Trading Days
during the Observation Period shall consist of:

(i)                        cash
equal to the lesser of (x) one-twentieth of $1,000 and (y) the Daily Conversion
Value for such Trading Day, and

(ii)                     to
the extent the Daily Conversion Value exceeds one-twentieth of $1,000, a number
of shares of Common Stock equal to (x) the difference between the Daily
Conversion Value and one-twentieth of $1,000, divided by (y) the Daily VWAP for
such day.

(c)                        Subject to
clauses (d) and (e) below, upon conversion, Holders shall not receive any
separate cash payment for accrued and unpaid interest, including Additional
Interest, if any, unless such conversion occurs between a Record Date and the
Interest Payment Date to which it relates.

(d)                       If
Securities are converted after 5:00 p.m., New York City time, on a Record Date
for the payment of interest, Holders of such Securities at 5:00 p.m., New York
City time, on such Record Date will receive the interest and Additional
Interest, if any, payable on such Securities on the corresponding Interest
Payment Date notwithstanding the conversion. 
Securities surrendered for conversion during the period from 5:00 p.m.,
New York City time, on any Record Date to 9:00 a.m., New York City time, on the
immediately following Interest Payment Date, must be accompanied by funds equal
to the amount of interest and Additional Interest, if any, payable on the
Securities so converted; provided that no such payment need be made (i) if the
Company has specified a Fundamental Change Purchase Date that is after a Record
Date and on or prior to the third Trading Day after the corresponding Interest
Payment Date; (ii) for conversions on or following December 1, 2013; or (iii)
to the extent of any overdue interest, if any overdue interest exists at the
time of conversion with respect to such Security.

(e)                        If a Holder
converts some or all of its Securities into Common Stock when there exists a
Registration Default with respect to the Common Stock, the Holder will not be
entitled to receive Additional Interest on such Common Stock. Such Holder will
receive, on the third Business Day following the last day of the related
Observation Period, all accrued and unpaid Additional Interest to the
Conversion Date.

 53
 

(f)                          The
Company shall not issue fractional shares of Common Stock upon conversion of
Securities.  If multiple Securities shall
be surrendered for conversion at one time by the same Holder, the number of
full shares which shall be issuable upon conversion shall be computed on the
basis of the aggregate Principal Amount of the Securities (or specified
portions thereof to the extent permitted hereby) so surrendered.  If any fractional share of stock would be
issuable upon the conversion of any Securities, the Company shall make payment
therefor in cash in lieu of fractional shares of Common Stock based on the
Daily VWAP of the Common Stock on the final Trading Day of the applicable
Observation Period.

(g)                       For
purposes of this Section 6.03, and notwithstanding the definitions contained in
Section 1.01, “Trading Day” means a day on which
(i) there is no Market Disruption Event and (ii) trading in securities
generally occurs on the New York Stock Exchange or, if the Common Stock is not
then listed on the New York Stock Exchange, on the principal other U.S.
national or regional securities exchange on which the Common Stock is then
listed or, if the Common Stock is not then listed on a U.S. national or
regional securities exchange, on the principal other market on which the Common
Stock is then traded.  If the Common
Stock (or other security for which a Daily VWAP must be determined) is not so
listed or quoted, “Trading Day” means a Business Day.

Section 6.04.  Adjustment of Conversion Rate.  The Conversion Rate shall be
adjusted from time to time by the Company if any of the following events
occurs, except that the Company will not make any adjustment if Holders of
Securities participate, as a result of holding the Securities, in the
transactions described below without having to convert their Securities.

(a)                        If the
Company, at any time or from time to time while any of the Securities are
outstanding, exclusively issues shares of Common Stock as a dividend or
distribution on shares of Common Stock, or if the Company effects a share split
or share combination, then the Conversion Rate will be adjusted based on the
following formula:

where

	
  CR0

  	
   

  	
  =

  	
   

  	
  the Conversion Rate in effect immediately prior to
  the Ex-Date of such dividend or distribution, or the effective date of such
  share split or share combination, as applicable;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CR

  	
   

  	
  =

  	
   

  	
  the Conversion Rate in effect immediately after such
  Ex-Date or effective date;

  

 

 54
 

 

	
  OS0

  	
   

  	
  =

  	
   

  	
  the number of shares of Common Stock outstaning
  immediately prior to such Ex-Date or effective date; and

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OS

  	
   

  	
  =

  	
   

  	
  the number of shares of Common Stock outstanding
  immediately after such Ex-Date or effective date.

  

 

Such adjustment shall become effective immediately
after the opening of business on the day following the record date for such
dividend or distribution, or the date fixed for determination for such share
split or share combination.  If any
dividend or distribution of the type described in this Section 6.04(a) is
declared but not so paid or made, the Conversion Rate shall again be adjusted
to the Conversion Rate which would then be in effect if such dividend or
distribution had not been declared.

(b)                       If the
Company, at any time or from time to time while any of the Securities are
outstanding, issues to all holders of Common Stock any rights or warrants entitling
them for a period of not more than 60 calendar days to subscribe for or
purchase shares of Common Stock at a price per share less than the average of
the Last Reported Sale Prices of Common Stock for the 10 consecutive Trading
Day period ending on the Business Day immediately preceding the date of
announcement of such issuance, the Conversion Rate shall be adjusted based on
the following formula (provided, that the Conversion Rate will be readjusted to
the extent such rights or warrants are not exercised prior to their
expiration):

where

	
  CR0

  	
   

  	
  =

  	
   

  	
  the Conversion Rate in effect immediately prior to
  the Ex-Date for such issuance;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CR

  	
   

  	
  =

  	
   

  	
  the Conversion Rate in effect immediately after such
  Ex-Date;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OS0

  	
   

  	
  =

  	
   

  	
  the number of shares of Common Stock outstanding
  immediately after such Ex-Date;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  X

  	
   

  	
  =

  	
   

  	
  the total number of shares of Common Stock issuable
  pursuant to such rights; and

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Y

  	
   

  	
  =

  	
   

  	
  the number of shares of Common Stock equal to the aggregate
  price payable to exercise such rights divided by the average of the Last
  Reported Sale Prices of Common Stock for the 10 consecutive Trading Day
  period ending on

  

 

 55
 

 

	
  

  	
   

  	
   

  	
   

  	
  the Business Day immediately preceding the date of
  announcement of the issuance of such rights.

  

 

To the extent such rights or warrants are not
exercised prior to their expiration or termination, the Conversion Rate shall
be readjusted to the Conversion Rate which would then be in effect had the
adjustments made upon the issuance of such rights or warrants been made on the
basis of the delivery of only the number of shares of Common Stock actually
delivered.  In the event that such rights
or warrants are not so issued, the Conversion Rate shall again be adjusted to
be the Conversion Rate which would then be in effect if the date fixed for the
determination of stockholders entitled to receive such rights or warrants had
not been fixed.  In determining whether
any rights or warrants entitle the holders to subscribe for or purchase shares
of Common Stock at less than the average of the Last Reported Sale Prices of
Common Stock for the 10 consecutive Trading Day period ending on the Business
Day immediately preceding the date of announcement of such issuance, and in
determining the aggregate offering price of such shares of Common Stock, there
shall be taken into account any consideration received for such rights or
warrants and the value of such consideration, if other than cash, as shall be
determined in good faith by the Board of Directors of the Company.

For the purposes of this Section 6.04(b), rights or
warrants distributed by the Company to all holders of Common Stock entitling
them 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 (a “Trigger
Event”): (1) are deemed to be transferred with such shares of Common
Stock; (2) are not exercisable; and (3) are also issued in respect of future
issuances of Common Stock, shall be deemed not to have been distributed for
purposes of this Section 6.04(b), (and no adjustment to the Conversion Rate
under this Section 6.04(b) will be required) until the occurrence of the
earliest Trigger Event, whereupon such rights and warrants shall be deemed to
have been distributed and an appropriate adjustment (if any is required) to the
Conversion Rate shall be made under this Section 6.04(b).  If any such right or warrant, including any
such existing rights or warrants distributed prior to the date of this
Indenture, are subject to events, upon the occurrence of which such rights or
warrants become exercisable to purchase different securities, evidences of
Indebtedness or other assets, then the date of the occurrence of any and each
such event shall be deemed to be the date of distribution and record date with
respect to new rights or warrants with such rights (and a termination or
expiration of the existing rights or warrants without exercise by any of the
holders thereof). In addition, in the event of any distribution (or deemed
distribution) of rights or warrants, or any Trigger Event or other event (of
the type described in the preceding sentence) with respect thereto that was
counted for purposes of calculating a distribution amount for which an
adjustment to the Conversion Rate under this Section 6.04(b) was made, (1) in
the case of any such rights or warrants

 56
 

which shall all have been redeemed or purchased
without exercise by any Holders thereof, the Conversion Rate shall be
readjusted upon such final purchase 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 purchase price received by a holder of Common
Stock with respect to such rights or warrants (assuming such holder had
retained such rights or warrants), made to all applicable holders of Common
Stock as of the date of such redemption or purchase, 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 Rate shall be readjusted as if
such rights and warrants had not been issued.

(c)                        If the
Company, at any time or from time to time while the Securities are outstanding,
distributes shares of any class of Capital Stock of the Company, evidences of
Indebtedness or other assets or property of the Company to all holders of its
Common Stock, excluding:

(i)                                     dividends
or distributions referred to in Section 6.04(a);

(ii)                                  rights
or warrants referred to in Section 6.04(b);

(iii)                               dividends or
distributions paid exclusively in cash; and

(iv)                              Spin-Offs
(as defined below) to which the provisions set forth below in this clause
6.04(c) shall apply;

then the Conversion Rate will be adjusted based on the
following formula:

where

	
  CR0

  	
   

  	
  =

  	
   

  	
  the Conversion Rate in effect immediately prior to
  the Ex-Date for such distribution;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CR

  	
   

  	
  =

  	
   

  	
  the Conversion Rate in effect immediately after such
  Ex-Date;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SP0

  	
   

  	
  =

  	
   

  	
  the average of the Last Reported Sale Prices of the
  Common Stock over the 10 consecutive Trading-Day period ending on the
  Business Day immediately preceding the Ex-Date for such distribution; and

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FMV

  	
   

  	
  =

  	
   

  	
  the Fair Market Value (as determined by the Board of
  Directors of the Company) of the shares of Capital Stock, evidences of
  Indebtedness, assets or property distributed

  

 

 57
 

 

	
  

  	
   

  	
   

  	
   

  	
  with respect to each outstanding share of the Common
  Stock on the Record Date for such distribution.

  

 

Such adjustment shall become effective immediately
prior to the opening of business on the day following the record date for such
distribution.  If the Board of Directors
of the Company determines the Fair Market Value of any distribution for
purposes of this Section 6.04(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 average of the Last
Reported Sale Prices of the Common Stock.

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

where

	
  CR0

  	
   

  	
  =

  	
   

  	
  the Conversion Rate in effect immediately prior to
  the effective date of the adjustment;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CR

  	
   

  	
  =

  	
   

  	
  the Conversion Rate in effect immediately after the
  effective date of the adjustment;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FMV0

  	
   

  	
  =

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MP0

  	
   

  	
  =

  	
   

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

  

 

The adjustment to the Conversion Rate under the
preceding paragraph will occur on the tenth Trading Day from, and including,
the effective date of the Spin-Off; provided that in respect of any conversion
within the 10 Trading Days following the effective date of any Spin-Off,
references within this Section 6.04(c) to “10 days” shall be deemed replaced
with such lesser number of Trading Days as have elapsed between the effective
date of such Spin-Off and the Conversion Date in determining the applicable
Conversion Rate.

 58
 

(d)                       If any cash
dividend or other distribution is made to all holders of Common Stock, the
Conversion Rate shall be adjusted based on the following formula:

where

	
  CR0

  	
   

  	
  =

  	
   

  	
  the Conversion Rate in effect immediately prior to
  the Ex-Date for such distribution;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CR

  	
   

  	
  =

  	
   

  	
  the Conversion Rate in effect immediately after the
  Ex-Date for such distribution;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SP0

  	
   

  	
  =

  	
   

  	
  the Last Reported Sale Price of a share of Common
  Stock on the Trading Day immediately preceding the Ex-Date for such
  distribution; and

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C

  	
   

  	
  =

  	
   

  	
  the amount in cash per share the Company distributes
  to holders of Common Stock.

  

 

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

where

	
  CR0

  	
   

  	
  =

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CR

  	
   

  	
  =

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AC

  	
   

  	
  =

  	
   

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

  

 

 59
 

 

	
  OS0

  	
   

  	
  =

  	
   

  	
  the number of shares of Common Stock outstanding
  immediately prior to the date such tender or exchange offer expires;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OS

  	
   

  	
  =

  	
   

  	
  the number of shares of Common Stock outstanding
  immediately after the date such tender or exchange offer expires; and

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SP’

  	
   

  	
  =

  	
   

  	
  the average of the Last Reported Sale Prices of
  Common Stock over the 10 consecutive Trading Day period commencing on the
  Trading Day next succeeding the date such tender or exchange offer expires.

  

 

The adjustment to the Conversion Rate under this
Section 6.04(e) shall occur on the tenth Trading Day from, and including, the
Trading Day next succeeding the date such tender or exchange offer expires;
provided that in respect of any conversion within the 10 Trading Days beginning
on the Trading Day next succeeding the date the tender or exchange offer
expires, references within this Section 6.04(e) to “10 days” shall be deemed
replaced with such lesser number of Trading Days as have elapsed between the
Trading Day next succeeding the date the tender or exchange offer expires and
the Conversion Date in determining the applicable Conversion Rate.

If the Company is obligated to purchase shares
pursuant to any such tender or exchange offer, but the Company is permanently
prevented by applicable law from effecting any such purchases or all such
purchases are rescinded, the Conversion Rate shall again be adjusted to be the
Conversion Rate that would then be in effect if such tender or exchange had not
been made.

(f)                          No
adjustment to the Conversion Rate will be required unless the adjustment would
require an increase or decrease of at least 1% of the Conversion Rate.  If the adjustment is not made because the
adjustment does not change the Conversion Rate by at least 1%, then the
adjustment that is not made will be carried forward and taken into account in
any future adjustment.  All required
calculations will be made to the nearest cent or 1/1000th of a share of Common
Stock.

(g)                       As used in
this Section 6.04, “Ex-Date” shall
mean the first date on which the shares of the Common Stock trade on the
applicable exchange or in the applicable market, regular way, without the right
to receive the issuance or distribution in question.

(h)                       For
purposes of this Section 6.04, “record date”
shall mean, with respect to any dividend, distribution or other transaction or
event in which the holders of Common Stock have the right to receive any cash,
securities or other property or in which the Common Stock (or other applicable
security) is exchanged for or converted into any combination of cash,
securities or other

 60

property,
the date fixed for determination of stockholders entitled to receive such cash,
securities or other property (whether such date is fixed by the Board of
Directors or by statute, contract or otherwise).

(i)                                     The
Company from time to time may increase the Conversion Rate by any amount for a
period of at least 20 days and the Board of Directors shall have made a
determination that such increase would be in the best interests of the Company,
which determination shall be conclusive. 
Whenever the Conversion Rate is increased pursuant to this Section
6.04(i), the Company shall mail to Holders of record of the Securities a notice
of the increase at least 15 days prior to the date the increased Conversion
Rate takes effect, and such notice shall state the increased Conversion Rate
and the period during which it will be in effect.

(j)                                     The
Company may (but is not required to) make such increases in the Conversion
Rate, in addition to any adjustments required by Section 6.04(a), 6.04(b),
6.04(c), 6.04(d), 6.04(e) or 6.04(i), as the Board of Directors considers to be
advisable to avoid or diminish income tax to holders of Common Stock or rights
to purchase shares of Common Stock in connection with any dividend or
distribution of stock (or rights to acquire shares) or from any event treated
as such for income tax purposes.

(k)                                  All
calculations under this Article 6 shall be made by the Company.  No adjustment shall be made for the Company’s
issuance of Common Stock or securities convertible into or exchangeable for shares
of Common Stock or rights to purchase Common Stock or convertible or
exchangeable securities, other than as provided in this Section 6.04.

(l)                                     Whenever
the Conversion Rate is adjusted as herein provided, the Company shall promptly
file with the Trustee and any Conversion Agent an Officers’ Certificate setting
forth the Conversion Rate after such adjustment and setting forth a brief
statement of the facts requiring such adjustment.  Unless and until a Responsible Officer of the
Trustee shall have received such Officers’ Certificate, the Trustee shall not
be deemed to have knowledge of any adjustment of the Conversion Rate and may
assume without inquiry that the last Conversion Rate of which it has knowledge
is still in effect.  Promptly after
delivery of such certificate, the Company shall prepare a notice of such
adjustment of the Conversion Rate setting forth the adjusted Conversion Rate
and the date on which each adjustment becomes effective and shall mail such
notice of such adjustment of the Conversion Rate to each Securityholder at such
Holder’s last address appearing on the list of Securityholders provided for in
Section 3.06, within 20 days after execution thereof.  Failure to deliver such notice shall not affect
the legality or validity of any such adjustment.

 61
 

(m)                               For
purposes of this Section 6.04, the number of shares of Common Stock at any time
outstanding shall not include shares held in the treasury of the Company so
long as the Company does not pay any dividend or make any distribution on shares
of Common Stock held in the treasury of the Company, but shall include shares
issuable in respect of scrip certificates issued in lieu of fractions of shares
of Common Stock.

(n)                                 No
adjustment to the Conversion Rate shall be made pursuant to this Section 6.04
if the Holders of the Securities may participate in the transaction (based on
the Conversion Rate) that would otherwise give rise to an adjustment pursuant
to this Section 6.04 without having to convert their Securities.

(o)                                 Notwithstanding
the foregoing, if the application of the foregoing formulas would result in a
decrease in the Conversion Rate (other than as a result of a stock split or a
stock dividend), no adjustment to the Conversion Rate shall be made.

(p)                                 Notwithstanding
anything to the contrary in this Article 6, no adjustment to the Conversion
Rate shall be made:

(i)                upon the issuance of any shares of Common
Stock pursuant to any present or future plan providing for the reinvestment of
dividends or interest payable on the Company’s securities and the investment of
additional optional amounts in shares of Common Stock under any plan;

(ii)             upon the issuance of any shares of Common
Stock or options or rights to purchase those shares pursuant to any present or
future employee, director or consultant benefit plan or program of or assumed
by the Company or any Subsidiary;

(iii)          upon the issuance of any shares of Common
Stock pursuant to any option, warrant, right or exercisable, exchangeable or
convertible security not described in (ii) above outstanding as of the date the
Securities were first issued;

(iv)         for a change in the par value of the Common
Stock;

(v)            for accrued and unpaid interest, including
Additional Interest, if any; or

(vi)         for
the avoidance of doubt, for the
issuance of Common Stock by the Company (other than to all or substantially all
holders of Common Stock) or the payment of cash by the Company upon conversion
or repurchase of Securities.

 62
 

Section 6.05.  Adjustments of Average
Prices.  Whenever a provision
of this Indenture requires the calculation of an average of Last Reported Sale
Prices or Daily VWAP over a span of multiple days, the Company shall make
appropriate adjustments to account for any adjustment to the Conversion Rate
that becomes effective, or any event requiring an adjustment to the Conversion
Rate that becomes effective, or any event requiring an adjustment to the
Conversion Rate where the Ex-Date of the event occurs, at any time during the
period from which the average is to be calculated.

Section 6.06.  Adjustments Upon Certain Fundamental Changes.

(a)                                  If
(i) a Holder elects to convert Securities as described in Section 6.01(a)(iv)
in connection with a corporate transaction as specified thereunder and such
corporate transaction constitutes a Fundamental Change described in clause (1)
or (2) of the definition thereof, the Conversion Rate will be increased by an
additional number of shares of Common Stock (the “Additional
Shares”) as described below. 
Any conversion will be deemed to have occurred “in connection with” such
Fundamental Change only if such Securities are surrendered for conversion at a
time when the Securities would be convertible in light of the expected or
actual occurrence of a Fundamental Change and notwithstanding the fact that a
Security may then be convertible because another condition to conversion has
been satisfied.

(b)                                 The
number of Additional Shares by which the Conversion Rate will be increased will
be determined by reference to the table attached as Schedule A hereto,
based on the date on which the Fundamental Change occurs or becomes effective
(the “Effective Date”) and the
price (the “Stock Price”) paid per
share of Common Stock in the Fundamental Change.  If the Fundamental Change is a transaction
described in clause (2) of the definition thereof, and holders of Common Stock
receive only cash in such Fundamental Change, the Stock Price shall be the cash
amount paid per share.  Otherwise, the
Stock Price shall be the average of the Last Reported Sale Prices of Common
Stock over the five Trading Day period ending on the Trading Day preceding the
Effective Date of the Fundamental Change.

(c)                                  The
Stock Prices set forth in the first row of the table in Schedule A
hereto shall be adjusted as of any date on which the Conversion Rate of the Securities
is otherwise adjusted.  The adjusted
Stock Prices shall equal the Stock Prices applicable immediately prior to such
adjustment, multiplied by a fraction, the numerator of which is the Conversion
Rate immediately prior to such adjustment and the denominator of which is the
Conversion Rate as so adjusted. The number of Additional Shares set forth in
such table will be adjusted in the same manner as the Conversion Rate as set
forth in Section 6.04.

 63
 

(d)                                 The
table in Schedule A hereto sets forth the hypothetical stock price, the
Effective Date and the number of Additional Shares to be added to the
Conversion Rate per $1,000 Principal Amount of Securities.

The exact Stock
Prices and Effective Dates may not be set forth in the table in Schedule A,
in which case:

(i)                If the Stock Price
is between two Stock Price amounts in the table or the Effective Date is
between two Effective Dates in the table, the number of Additional Shares will
be determined by a straight-line interpolation between the number of Additional
Shares set forth for the higher and lower Stock Price amounts and the two
dates, as applicable, based on a 365-day year.

(ii)             If the Stock Price is greater than $75.00
per share (subject to adjustment in the same manner as the Conversion Rate as
set forth in Section 6.04), no Additional Shares will be added to the
Conversion Rate.

(iii)          If the Stock Price is less than $23.12 per
share (subject to adjustments in the same manner as the Conversion Rate as set
forth in Section 6.04), no Additional Shares will be added to the Conversion
Rate.

Notwithstanding the foregoing, in no event will the
total number of shares of Common Stock issuable upon conversion exceed 43.2526shares of Common Stock per $1,000
Principal Amount of Securities, subject to adjustments in the same manner as
the Conversion Rate as set forth in Section 6.04.

Section 6.07.  Effect of Recapitalization,
Reclassification, Consolidation, Merger or Sale.  If any of the following events occur:

(i)                any recapitalization, reclassification or
change of shares of Common Stock issuable upon conversion of the Securities
(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 6.04(c));

(ii)             any consolidation, 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 recapitalization,
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

 64
 

(iii)          any sale, lease or other transfer of all
or substantially all of the consolidated properties and assets of the Company
and its Subsidiaries to any other Person or any statutory share exchange;

in each case of clauses (i) – (iii) as a result of
which holders of Common Stock shall be entitled to receive stock, other
securities or other property or assets (including cash or any combination of
the foregoing) with respect to or in exchange for such Common Stock,

then at the effective
time of such transaction, the Company or the successor or purchasing person, as
the case may be, shall execute with the Trustee a supplemental indenture (which
shall comply with the Trust Indenture Act as in force at the date of execution
of such supplemental indenture) providing that the Securities shall be
convertible into the kind and amount of shares of stock, other securities or
other property or assets (including cash or any combination thereof) receivable
upon such recapitalization, reclassification, change, consolidation, merger,
combination, sale, lease or other transfer by a holder of a number of shares of
Common Stock equal to the Conversion Rate immediately prior to such
recapitalization, reclassification, change, consolidation, merger, combination,
sale, lease or other transfer (the “Reference Property”).  However, if, at the effective time of such
transaction, settlement of Securities converted were to be in cash and shares
of Common Stock as described under Section 6.03, a Securityholder will be
entitled thereafter to convert its Securities into cash (up to the aggregate
Principal Amount thereof) and the same type (and in the same proportion) of
Reference Property, based on the Settlement Amount, in an amount equal to the
applicable Conversion Rate, as described under Section 6.03.  If the transaction causes Common Stock to be
converted into the right to receive more than a single type of consideration
(determined based in part upon any from of stockholder election), the Reference
Property into which the Securities will be convertible shall be deemed to be
the weighted average of the types and amounts of consideration received by the
holders of Common Stock that affirmatively make such election.  However, at and after the effective time of
the transaction, the amount otherwise payable in cash upon conversion of the Securities
will continue to be payable in cash, and the Daily Conversion Value shall be
calculated based on the value of the Reference Property.  The Company shall not become a party to any
such transaction unless its terms are consistent with this Section 6.07.  Such supplemental indenture shall provide for
adjustments which shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Article 6. 
If, in the case of any such recapitalization, reclassification, change,
consolidation, merger, combination, sale, lease or other transfer, the stock,
the Reference Property receivable thereupon by a holder of Common Stock
includes shares of stock, other securities or other property or assets
(including cash or any combination thereof) of a corporation other than the
successor or purchasing corporation, as the case may be, in such
reclassification, change, consolidation, merger, combination, sale or
conveyance, then such supplemental

 65
 

indenture shall also be
executed by such other corporation and shall contain such additional provisions
to protect the interests of the Holders of the Securities as the Board of
Directors shall reasonably consider necessary by reason of the foregoing.

The Company shall
cause notice of the execution of such supplemental indenture to be mailed to
each Holder, at the address of such Holder as it appears on the register of the
Securities maintained by the Security Registrar, within 20 days after execution
thereof.  Failure to deliver such notice
shall not affect the legality or validity of such supplemental indenture.  The above provisions of this Section shall
similarly apply to successive reclassifications, changes, consolidations,
mergers, combinations, sales and conveyances. 
If this Section 6.07 applies to any event or occurrence, Section 6.04
shall not apply.

Section 6.08. Taxes on Shares Issued.  Any
issue of stock certificates on conversions of Securities shall be made without
charge to the converting Holder for any documentary, transfer, stamp or any
similar tax in respect of the issue thereof, and the Company shall pay any and
all documentary, stamp or similar issue or transfer taxes that may be payable
in respect of the issue or delivery of shares of Common Stock on conversion of
Securities pursuant hereto.  The Company
shall not, however, be required to pay any such tax which may be payable in
respect of any transfer involved in the issue and delivery of stock in any name
other than that of the Holder of any Securities converted, and the Company
shall not be required to issue or deliver any such stock certificate unless and
until the person or persons requesting the issue thereof shall have paid to the
Company the amount of such tax or shall have established to the satisfaction of
the Company that such tax has been paid.

Section 6.09.  Reservation of Shares; Shares
to be Fully Paid; Compliance With Governmental Requirements; Listing of Common
Stock.  The Company shall
provide, free from preemptive rights, out of its authorized but unissued shares
or shares held in treasury, sufficient shares of Common Stock to provide for
the conversion of the Securities from time to time as such Securities are
presented for conversion (assuming that, at the time of the computation of such
number of shares or securities, all such Securities would be held by a single
Holder).

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

 66
 

The Company
covenants that all shares of Common Stock that may be issued upon conversion of
Securities shall be newly issued shares or treasury shares, shall be duly
authorized, validly issued, fully paid and non-assessable and shall be free
from preemptive rights and free from any tax, lien or charge (other than those
created by the Holder).

The Company shall
use its reasonable efforts to list or cause to have quoted any shares of Common
Stock to be issued upon conversion of Securities on each national securities
exchange or over-the-counter or other domestic market on which the Common Stock
is then listed or quoted.

Section 6.10. Responsibility of Trustee.  The
Trustee and any other Conversion Agent shall not at any time be under any duty
or responsibility to any Securityholder to determine the Conversion Rate or
whether any facts exist which may require any adjustment of the Conversion
Rate, or with respect to the nature or extent or calculation of any such
adjustment when made, or with respect to the method employed, or herein or in
any supplemental indenture provided to be employed, in making the same.  The Trustee and any other Conversion Agent
shall not be accountable with respect to the validity or value (or the kind or
amount) of any shares of Common Stock, or of any securities or property, which
may at any time be issued or delivered upon the conversion of any Securities;
and the Trustee and any other Conversion Agent make no representations with
respect thereto.  Neither the Trustee nor
any Conversion Agent shall be responsible for any failure of the Company to
issue, transfer or deliver any shares of Common Stock or stock certificates or
other securities or property or cash upon the surrender of any Securities for
the purpose of conversion or to comply with any of the duties, responsibilities
or covenants of the Company contained in this Article 6.  Without limiting the generality of the
foregoing, neither the Trustee nor any Conversion Agent shall be under any
responsibility to determine the correctness of any provisions contained in any
supplemental indenture entered into pursuant to Section 6.07 relating either to
the kind or amount of shares of stock or securities or property (including cash
or any combination thereof) receivable by Holders upon the conversion of their
Securities after any event referred to in such Section 6.07 or to any
adjustment to be made with respect thereto, but, subject to the provisions of
Section 10.01, may accept as conclusive evidence of the correctness of any such
provisions, and shall be protected in relying upon, the Officers’ Certificate
(which the Company shall be obligated to file with the Trustee prior to the
execution of any such supplemental indenture) with respect thereto.

Section 6.11.  Notice to Holders Prior to
Certain Actions.  In case:

(a)                                  the
Company shall declare a dividend (or any other distribution) on its Common
Stock that would require an adjustment in the Conversion Rate pursuant to
Section 6.04; or

 67
 

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

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

(d)                                 of
the voluntary or involuntary dissolution, liquidation or winding up of the Company
or any of its Significant Subsidiaries;

then, in each case, the
Company shall cause to be filed with the Trustee and the Conversion Agent and
to be mailed to each Securityholder at such Holder’s address appearing on the
list of Securityholders provided for in Section 3.06 of this Indenture, as
promptly as practicable but in any event at least 15 days prior to the
applicable date hereinafter specified, a notice stating (x) the date on which a
record is to be taken for the purpose of such dividend, distribution or rights
or warrants, or, if a record is not to be taken, the date as of which the
holders of Common Stock of record to be entitled to such dividend, distribution
or rights are to be determined, or (y) the date on which such reclassification,
consolidation, merger, sale, lease, transfer, dissolution, liquidation or
winding up is expected to become effective or occur, and the date as of which
it is expected that holders of Common Stock of record shall be entitled to
exchange their Common Stock for securities or other property deliverable upon
such reclassification, consolidation, merger, sale, transfer, dissolution,
liquidation or winding up. Failure to give such notice, or any defect therein,
shall not affect the legality or validity of such dividend, distribution,
reclassification, consolidation, merger, sale, transfer, dissolution,
liquidation or winding up.

Section 6.12.  Stockholder Rights Plan.  Each share of Common
Stock issued upon conversion of Securities pursuant to this Article 6 shall be
entitled to receive the appropriate number of rights, if any, and the
certificates representing the Common Stock issued upon such conversion shall
bear such legends, if any, in each case as may be provided by the terms of any
stockholder rights plan adopted by the Company, as the same may be amended from
time to time.  If at the time of
conversion, however, the rights have separated from the shares of Common Stock
in accordance with the provisions of the applicable stockholder rights
agreement so that the Holders of the Securities would not be entitled to
receive any rights in respect of Common Stock issuable upon conversion of the
Securities, the Conversion Rate will be adjusted at the time of separation as
if the Company has distributed to all holders of Common Stock, shares of
Capital Stock

 68
 

of the Company, evidence of indebtedness or assets as
provided in Section 6.04(c), subject to readjustment in the event of the
expiration, termination or redemption of such rights.

Section 6.13.  Company Determination
Final.  Any determination that
the Company or its Board of Directors must make pursuant to this Article 6
shall be conclusive if made in good faith and in accordance with the provisions
of this Article 6, absent manifest error, and set forth in a Board Resolution.

ARTICLE 7

EVENTS OF DEFAULT; REMEDIES

Section 7.01.  Events of Default.  “Event of
Default,” wherever used herein, means any one of the following
events:

(a)                                  default
in the payment of interest, including any Additional Interest (as required by the
Registration Rights Agreement), on any Security when due and payable and the
default continues for a period of 30 days;

(b)                                 default
in the payment of the Principal Amount of any Security when due and payable at
Stated Maturity, upon required repurchase upon a Fundamental Change, upon
declaration or otherwise;

(c)                                  failure
by the Company to comply with its obligation to convert the Securities into
cash and shares of Common Stock, if any, upon exercise of a Holder’s conversion
right in accordance with Article 6 hereof, and such failure continues for a
period of ten days;

(d)                                 failure
by the Company to give a Fundamental Change Company Notice or notice to Holders
required pursuant to Section 6.01(a)(iii) or Section 6.01(a)(iv), in each case
on the date such notice is due;

(e)                                  failure
by the Company to comply with its obligations in Article 8;

(f)                                    default
in the observance or performance of any covenant of the Company in this
Indenture, and such default continues for a period of 90 days after there has
been given, by registered or certified mail, to the Company by the Trustee or
to the Company and the Trustee by the Holders of at least 25% in Principal
Amount of the Outstanding Securities a written notice, in each case received by
the Company (and the Trustee, if applicable), specifying such default and
requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder;

 69
 

(g)                                 failure
to pay when due at Stated Maturity, or default by the Company or any Subsidiary
in the payment of the principal or interest on any mortgage, agreement or other
instrument which results in the acceleration of maturity, in each case of any
indebtedness for money borrowed in excess of $25,000,000 in the aggregate of
the Company and/or any such Subsidiary, whether such indebtedness now exists or
is hereafter created (but excluding intercompany indebtedness), unless such
failure is cured or such acceleration is rescinded, stayed or annulled within
10 days after written notice of default is received by the Company from the
Trustee or the Holders of at least 25% in Principal Amount of the Securities
then outstanding;

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

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

 70
 

(j)                                     a
final judgment for the payment of $10 million or more (excluding any amounts
covered by insurance) rendered against the Company or any Significant
Subsidiary, which judgment is not discharged or stayed within 60 days after (i)
the date on which the right to appeal thereof has expired if no such appeal has
commenced, or (ii) the date on which all rights to appeal have been
extinguished.

Section 7.02.  Acceleration of Maturity;
Rescission and Annulment.

(a)                                  If
an Event of Default (other than those specified in Section 7.01(h) and 7.01(i))
occurs and is continuing, then and in every such case the Trustee or the
Holders of not less than 25% in aggregate Principal Amount of the Outstanding
Securities may (and the Trustee upon request of such Holders shall) declare
100% of the Principal Amount plus accrued and unpaid interest, including
Additional Interest, on all the Outstanding Securities to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given
by Holders), and upon any such declaration such Principal Amount plus accrued
and unpaid interest, including Additional Interest, shall become immediately
due and payable.

Notwithstanding
the foregoing, in the case of an Event of Default specified in Section 7.01(h)
or Section 7.01(i)), the 100% of Principal Amount plus accrued and unpaid
interest, including Additional Interest, on all Outstanding Securities will ipso facto become due and payable immediately without any
declaration or other act on the part of the Trustee or any Holder.

(b)                                 At
any time after such a declaration of acceleration has been made, the Holders of
a majority in aggregate Principal Amount of the Outstanding Securities, by
written notice to the Company and the Trustee, may waive all past Defaults and
rescind and annul such declaration with respect to the Securities and its
consequences (other than with respect to an Event of Default under Sections
7.01(a) or 7.01(b)) if:

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

(ii)                 all Events of
Default, other than the non-payment of the Principal Amount plus accrued and
unpaid interest, including Additional interest, on Securities that have become
due solely by such declaration of acceleration, have been cured or waived as
provided in Section 7.12.

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

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Section 7.03.  Collection of Indebtedness
and Suits for Enforcement by Trustee.  The
Company covenants that if a Default is made in the payment of the Principal
Amount plus accrued and unpaid interest, including Additional Interest, at the
Maturity thereof or in the payment of the Fundamental Change Purchase Price in
respect of any Security, the Company will, upon demand of the Trustee, pay to
it, for the benefit of the Holders of such Securities, the whole amount then
due and payable on such Securities, and, in addition thereto, such further
amounts required pursuant to Section 7.07.

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

Section 7.04.  Trustee May File Proofs of
Claim.  In case of any
judicial proceeding relative to the Company (or any other obligor upon the
Securities), its property or its creditors, the Trustee shall be entitled and
empowered, by intervention in such proceeding or otherwise, to take any and all
actions authorized under the Trust Indenture Act in order to have claims of the
Holders and the Trustee allowed in any such proceeding.  In particular, the Trustee shall be
authorized to collect and receive any moneys or other property payable or
deliverable on any such claims and to distribute the same; and any custodian,
receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Holder to make
such payments to the Trustee and, in the event that the Trustee shall consent
to the making of such payments directly to the Holders, to pay to the Trustee
any amount due it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel and any other amounts due the
Trustee under Section 10.07.

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

Section 7.05.  Application of Money and
Property Collected.  Any money
and property collected by the Trustee pursuant to this Article shall be applied
in the following order, at the date or dates fixed by the Trustee and, in case
of the

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distribution of such money or property to Holders,
upon presentation of the Securities and the notation thereon of the payment if
only partially paid and upon surrender thereof if fully paid:

FIRST:  To the
payment of all amounts due the Trustee under Section 10.07;

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

THIRD:  To the
payment of the remainder, if any, to the Company or any other Person lawfully
entitled thereto.

Section 7.06.  Limitation on Suits.  No Holder of any Security shall
have any right to institute any proceeding, judicial or otherwise, with respect
to this Indenture or the Securities, or for the appointment of a receiver or
trustee, or for any other remedy hereunder (other than in the case of an Event
of Default specified in Section 7.01(a) or Section 7.01(b)), unless:

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

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

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

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

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

it being understood and
intended that no one or more Holders shall have any right in any manner
whatever by virtue of, or by availing itself of, any provision of this

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Indenture to affect,
disturb or prejudice the rights of any other Holders, or to obtain or to seek
to obtain priority or preference over any other Holders or to enforce any right
under this Indenture, except in the manner herein provided and for the equal
and ratable benefit of all the Holders.

Section 7.07.  Unconditional Right of Holders
to Receive Payment.  Notwithstanding
any other provision of this Indenture, the right of any Holder to receive
payment of the Principal Amount, Fundamental Change Purchase Price or accrued
and unpaid interest in respect of the Securities held by such Holder, on or
after the respective due dates expressed in the Securities or any Fundamental
Change Purchase Date, as applicable, and to convert the Securities in
accordance with Article 6, or to bring suit for the enforcement of any such
payment on or after such respective dates or the right to convert, shall not be
impaired or affected adversely without the consent of such Holder.

Section 7.08.  Restoration of Rights and
Remedies.  If the Trustee or
any Holder has instituted any proceeding to enforce any right or remedy under
this Indenture and such proceeding has been discontinued or abandoned for any
reason, or has been determined adversely to the Trustee or to such Holder, then
and in every such case, subject to any determination in such proceeding, the
Company, the Trustee and the Holders shall be restored severally and
respectively to their former positions hereunder and thereafter all rights and
remedies of the Trustee and the Holders shall continue as though no such
proceeding had been instituted.

Section 7.09.  Rights and Remedies
Cumulative.  Except as
otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in the last paragraph of Section 3.07, no
right or remedy herein conferred upon or reserved to the Trustee or to the
Holders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. 
The assertion or employment of any right or remedy hereunder shall not
prevent the concurrent assertion or employment of any other appropriate right
or remedy.

Section 7.10.  Delay or Omission Not
Waiver.  No delay or omission
of the Trustee or of any Holder of any Security to exercise any right or remedy
accruing upon any Event of Default shall impair any such right or remedy or
constitute a waiver of any such Event of Default or an acquiescence
therein.  Every right and remedy given by
this Article or by law to the Trustee or to the Holders may be exercised from
time to time, and as often as may be deemed expedient, by the Trustee or by the
Holders, as the case may be.

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Section 7.11.  Control by Holders.  The Holders of a majority in
Principal Amount of the Outstanding Securities shall have the right to direct
the time, method and place of conducting any proceeding for any remedy
available to the Trustee or exercising any trust or power conferred on the
Trustee, provided that:

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

(ii)             the Trustee may
refuse to follow any such direction that the Trustee determines is unduly
prejudicial to the rights of any other Holder or that would involve the Trustee
in personal liability.

Section 7.12.  Waiver of Past Defaults.  The Holders of not less than a
majority in Principal Amount of the Outstanding Securities may on behalf of the
Holders of all the Securities waive any past Default hereunder and its
consequences, except a Default:

(i)                Described in
Section 7.01(a) or Section 7.01(b); or

(ii)             in respect of a
covenant or provision hereof which under Article 13 cannot be modified or
amended without the consent of the Holder of each Outstanding Security
affected.

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

Section 7.13.  Undertaking for Costs.  In any suit for the enforcement of
any right or remedy under this Indenture or in any suit against the Trustee for
any action taken or omitted by it as Trustee, in either case in respect of the
Securities, a court may require any party litigant in such suit to file an
undertaking to pay the costs of the suit, and the court may assess reasonable
costs, including reasonable attorney’s fees and expenses, against any party
litigant in the suit having due regard to the merits and good faith of the
claims or defenses made by the party litigant; but the provisions of this
Section 7.13 shall not apply to any suit instituted by the Company, to any suit
instituted by the Trustee, to any suit instituted by any Holder, or group of
Holders, holding in the aggregate more than 10% in Principal Amount of the
Outstanding Securities, or to any suit instituted by any Holder for the
enforcement of the payment of the Principal Amount on any Security on or after
Maturity of such Security or the Fundamental Change Purchase Price.

Section 7.14.  Waiver of Stay or Extension
Laws.  The Company covenants
(to the extent that it may lawfully do so) that it will not at any time

 75
 

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

Section 7.15.  Notice of Default.  The Trustee
may withhold notice to the Holders of the Securities of any Event of Default,
except defaults in payment of Principal Amount or interest, including
Additional Interest, if any, on the Securities, if and so long as a committee
of the trust officers of the Trustee in good faith determines that the
withholding of such notice is in the interest of the Holders of the Securities.

ARTICLE
8

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

Section 8.01.  Company May Consolidate, etc.,
Only on Certain Terms.  The
Company shall not consolidate with or merge with or into, or convey, transfer
or lease all or substantially all of its properties and assets to, any Person,
unless:

(a)                        the
resulting, surviving or transferee Person, if not the Company (the “Successor Company”), is a Person organized
and existing under the laws of the United States of America, any state thereof
or the District of Columbia, and the Successor Company (if not the Company
itself) expressly assumes, by a supplemental indenture, executed and delivered
to the Trustee, in form reasonably satisfactory to the Trustee, all of the
obligations of the Company under the Securities, this Indenture and, to the extent
then still operative, the Registration Rights Agreement; and

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

Section 8.02.  Successor Substituted.  Upon any consolidation of the
Company with, or merger of the Company with or into, any other Person or any
conveyance, transfer or lease of the properties and assets of the Company
substantially as an entirety in accordance with Section 8.01, the Successor
Company formed by such consolidation or into which the Company is merged or to
which such conveyance, transfer or lease is made shall succeed to, and be

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substituted for, and may exercise every right and
power of, the Company under this Indenture with the same effect as if such
successor Person had been named as the Company herein, and thereafter.

ARTICLE
9

SUBORDINATION OF THE SECURITIES

Section 9.01.  Agreement of Subordination.

The
Company covenants and agrees, and each Holder of Securities issued hereunder by
its acceptance thereof likewise covenants and agrees, that all Securities shall
be issued subject to the provisions of this Article 9; and each Person holding
any Security, whether upon original issue or upon transfer, assignment or
exchange thereof, accepts and agrees to be bound by such provisions.

The
payment of the principal of, and the cash portion of the conversion obligation
as set forth in Article 6, and any interest on, all Securities (including, but
not limited to, the Fundamental Change Purchase Price with respect to the Securities
subject to purchase in accordance with Article 5 as provided in this Indenture)
issued hereunder shall, to the extent and in the manner hereinafter set forth,
be subordinated and subject in right of payment to the prior payment in full,
in cash or other payment satisfactory to the holders of Senior Indebtedness, of
all Senior Indebtedness, whether outstanding at the date of this Indenture or
thereafter incurred. The Securities shall rank senior in right of payment to
all Subordinated Indebtedness and equal in right of payment to all other Senior
Subordinated Indebtedness.

No
provision of this Article 9 shall prevent the occurrence of any default or
Event of Default hereunder.

Section
9.02.  Payments
to Holders.

No
payment shall be made with respect to the principal of, or premium on, if any,
the cash portion of the conversion obligation, if any, or interest on, the
Securities (including, but not limited to, the Fundamental Change Purchase
Price with respect to the Securities subject to purchase in accordance with
Article 5 as provided in this Indenture), except payments and distributions
made by the Trustee as permitted by the first or second paragraph of Section
9.05, if:

(i)                                     a
default in the payment of principal, premium, interest, rent or other obligations
due on any Designated Senior Indebtedness occurs and is continuing (or, in the
case of Designated Senior Indebtedness for which there is a period of grace, in
the event of such a

 77
 

default that continues
beyond the period of grace, if any, specified in the instrument or lease
evidencing such Designated Senior Indebtedness), unless and until such default
shall have been cured or waived or shall have ceased to exist; or

(ii)                                  a
default, other than a payment default, on any Designated Senior Indebtedness occurs
and is continuing that then permits holders of such Designated Senior
Indebtedness to accelerate its maturity and the Trustee receives a notice of
the default (a “Payment Blockage Notice”) from a
Representative or holder of such Designated Senior Indebtedness, unless and
until the earlier of (x) the date on which such default is cured or waived or
ceases to exist or (y) 179 days after the date on which the Payment Blockage
Notice is received.

If
the Trustee receives any Payment Blockage Notice pursuant to clause (ii) above,
no subsequent Payment Blockage Notice shall be effective for purposes of this
Section unless and until at least 365 days shall have elapsed since the initial
effectiveness of the immediately prior Payment Blockage Notice and all scheduled
payments on the Securities that have come due have been paid in full in
cash.  No nonpayment default that existed
or was continuing on the date of delivery of any Payment Blockage Notice to the
Trustee (unless such default was waived, cured or otherwise ceased to exist and
thereafter subsequently reoccurred) shall be, or be made, the basis for a
subsequent Payment Blockage Notice.

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

(a)                        in the
case of a default referred to in clause (i) above, the date upon which the
default is cured or waived or ceases to exist, or

(b)                       in the case
of a default referred to in clause (ii) above, the earlier of the date on which
such default is cured or waived or ceases to exist or 179 days after the date
on which the applicable Payment Blockage Notice is received, if the maturity of
such Designated Senior Indebtedness has not been accelerated, unless this
Article 9 otherwise prohibits the payment or distribution at the time of such
payment or distribution.

Upon
any payment by the Company, or distribution of assets of the Company of any
kind or character, whether in cash, property or securities, to creditors upon
any dissolution or winding-up or liquidation or reorganization of the Company
(whether voluntary or involuntary) or in bankruptcy, insolvency, receivership
or similar proceedings, all amounts due or to become due upon all Senior
Indebtedness shall first be paid in full, in cash or other payment satisfactory
to the holders of Senior Indebtedness, before any payment is made on

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account of the principal of, and premium, if any, the
cash portion of the conversion obligation, if any, or interest on, the
Securities (except payments made pursuant to Article 12 from monies deposited
with the Trustee pursuant thereto prior to commencement of proceedings for such
dissolution, winding-up, liquidation or reorganization); and upon any such
dissolution or winding-up or liquidation or reorganization of the Company or bankruptcy,
insolvency, receivership or other proceeding, any payment by the Company, or
distribution of assets of the Company of any kind or character, whether in
cash, property or securities, to which the Holders of the Securities or the
Trustee would be entitled, except for the provision of this Article 9, shall
(except as aforesaid) be paid by the Company or by any receiver, trustee in
bankruptcy, liquidating trustee, agent or other Person making such payment or
distribution, or by the Holders of the Securities or by the Trustee under this
Indenture, if received by them or it, directly to the holders of Senior
Indebtedness (pro rata to such holders on the
basis of the respective amounts of Senior Indebtedness held by such holders, or
as otherwise required by law or a court order) or their Representative or
Representatives, or to the trustee or trustees under any indenture pursuant to
which any instruments evidencing any Senior Indebtedness may have been issued,
as their respective interests may appear, to the extent necessary to pay all
Senior Indebtedness in full, in cash or other payment satisfactory to the
holders of Senior Indebtedness, after giving effect to any concurrent payment
or distribution to or for the holders of Senior Indebtedness, before any payment
or distribution is made to the Holders of the Securities or to the Trustee.

For
purposes of this Article 9, the words, “cash, property or securities” shall not
be deemed to include shares of stock of the Company, as reorganized or
readjusted, or securities of the Company or any other corporation provided for
by a plan of reorganization or readjustment, the payment of which is
subordinated at least to the extent provided in this Article 9 with respect to
the Securities to the payment of all Senior Indebtedness which may at the time
be outstanding; provided that (i) the Senior
Indebtedness is assumed by the new corporation, if any, resulting from any
reorganization or readjustment and (ii) the rights of the holders of Senior
Indebtedness (other than leases which are not assumed by the Company or the new
corporation, as the case may be) are not, without the consent of such holders,
altered by such reorganization or readjustment. 
The consolidation of the Company with, or the merger of the Company
into, another corporation or the liquidation or dissolution of the Company
following the conveyance, transfer or lease of its property as an entirety, or
substantially as an entirety, to another corporation upon the terms and
conditions provided for in Article 8 shall not be deemed a dissolution,
winding-up, liquidation or reorganization for the purposes of this Section 9.02
if such other corporation shall, as a part of such consolidation, merger,
conveyance, transfer or lease, comply with the conditions stated in Article 8.

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In
the event of the acceleration of the Securities because of an Event of Default,
no payment or distribution shall be made to the Trustee or any Holder of
Securities in respect of the principal of, and premium, if any, the cash
portion of the conversion obligation, if any, or interest on, the Securities by
the Company (including, but not limited to, the Fundamental Change Purchase
Price with respect to the Securities subject to purchase in accordance with
Article 5 as provided in this Indenture),until all
Senior Indebtedness has been paid in full in cash or other payment satisfactory
to the holders of Senior Indebtedness or such acceleration is rescinded in
accordance with the terms of this Indenture. 
If payment of Securities is accelerated because of an Event of Default,
the Company shall promptly notify holders of Senior Indebtedness of such
acceleration.

In
the event that, notwithstanding the foregoing provisions, any payment or
distribution of assets of the Company of any kind or character, whether in
cash, property or securities (including, without limitation, by way of setoff
or otherwise), prohibited by the foregoing, shall be received by the Trustee or
the Holders of the Securities before all Senior Indebtedness is paid in full,
in cash or other payment satisfactory to the holders of Senior Indebtedness, or
provision is made for such payment thereof in accordance with its terms in cash
or other payment satisfactory to the holders of Senior Indebtedness, such
payment or distribution shall be held in trust for the benefit of and shall be
paid over or delivered to the holders of Senior Indebtedness or their
Representative or Representatives, or to the trustee or trustees under any
indenture pursuant to which any instruments evidencing any Senior Indebtedness
may have been issued, as their respective interests may appear, as calculated
by the Company, for application to the payment of all Senior Indebtedness
remaining unpaid to the extent necessary to pay all Senior Indebtedness in
full, in cash or other payment satisfactory to the holders of Senior
Indebtedness, after giving effect to any concurrent payment or distribution to
or for the holders of such Senior Indebtedness.

Section 9.03.  Subrogation of Securities.

Subject
to the payment in full, in cash or other payment satisfactory to the holders of
Senior Indebtedness, of all Senior Indebtedness, the rights of the Holders of
the Securities shall be subrogated to the extent of the payments or
distributions made to the holders of such Senior Indebtedness pursuant to the
provisions of this Article 9 (equally and ratably with the holders of all
indebtedness of the Company which by its express terms is subordinated to other
indebtedness of the Company to substantially the same extent as the Securities
are subordinated and is entitled to like rights of subrogation) to the rights
of the holders of Senior Indebtedness to receive payments or distributions of
cash, property or securities of the Company applicable to the Senior
Indebtedness until the principal of, and premium, if any, the cash portion of
the conversion obligation, if any, and interest on, the Securities shall be
paid in full, in cash or

 80
 

other payment satisfactory to the holders of Senior
Indebtedness; and, for the purposes of such subrogation, no payments or
distributions to the holders of the Senior Indebtedness of any cash, property
or securities to which the Holders of the Securities or the Trustee would be
entitled except for the provisions of this Article 9, and no payment over, pursuant
to the provisions of this Article 9, to or for the benefit of the holders of
Senior Indebtedness by Holders of the Securities  or the Trustee shall, as between the Company,
its creditors other than holders of Senior Indebtedness and the Holders of the
Securities, be deemed to be a payment by the Company to or on account of the
Senior Indebtedness; and no payments or distributions of cash, property or
securities to or for the benefit of the Holders of the Securities pursuant to
the subrogation provisions of this Article 9, which would otherwise have been
paid to the holders of Senior Indebtedness, shall be deemed to be a payment by
the Company to or for the account of the Securities.  It is understood that the provisions of this
Article 9 are and are intended solely for the purposes of defining the relative
rights of the Holders of the Securities, on the one hand, and the holders of
the Senior Indebtedness, on the other hand.

Nothing
contained in this Article 9 or elsewhere in this Indenture or in the Securities
is intended to or shall impair, as among the Company, its creditors other than
the holders of Senior Indebtedness and the Holders of the Securities, the
obligation of the Company, which is absolute and unconditional, to pay to the
Holders of the Securities the principal of, and premium, if any, the cash
portion of the conversion obligation, if any, and any interest on the
Securities as and when the same shall become due and payable in accordance with
their terms, or is intended to or shall affect the relative rights of the
Holders of the Securities and creditors of the Company other than the holders
of the Senior Indebtedness, nor shall anything herein or therein prevent the
Trustee or the Holder of any Security from exercising all remedies otherwise permitted
by applicable law upon default under this Indenture, subject to the rights, if
any, under this Article 9 of the holders of Senior Indebtedness in respect of
cash, property or securities of the Company received upon the exercise of any
such remedy.

Upon
any payment or distribution of assets of the Company referred to in this
Article 9, the Trustee and the Holders of the Securities shall be entitled to
rely upon any order or decree made by any court of competent jurisdiction in
which such bankruptcy, dissolution, winding-up, liquidation or reorganization
proceedings are pending, or a certificate of the receiver, trustee in
bankruptcy, liquidating trustee, agent or other person making such payment or
distribution, delivered to the Trustee or to the Holders of the Securities, for
the purpose of ascertaining the persons entitled to participate in such
distribution, the holders of the Senior Indebtedness and other indebtedness of
the Company, the amount thereof or payable thereon and all other facts pertinent
thereto or to this Article 9.

 81
 

Section 9.04.  Authorization to Effect
Subordination.

Each
Holder of a Security by the Holder’s acceptance thereof authorizes and directs
the Trustee on the Holder’s behalf to take such action as may be necessary or
appropriate to effectuate the subordination as provided in this Article 9 and
appoints the Trustee to act as the Holder’s attorney-in-fact for any and all
such purposes.

Section 9.05.  Notice to Trustee.

The
Company shall give prompt written notice in the form of an Officers’
Certificate to a Responsible Officer of the Trustee and to any Paying Agent of
any fact known to the Company which would prohibit the making of any payment of
monies to or by the Trustee or any Paying Agent in respect of the Securities pursuant
to the provisions of this Article 9. 
Notwithstanding the provisions of this Article 9 or any other provision
of this Indenture, the Trustee shall not be charged with knowledge of the
existence of any facts which would prohibit the making of any payment of monies
to or by the Trustee in respect of the Securities pursuant to the provisions of
this Article 9, unless and until a Responsible Officer of the Trustee shall
have received written notice thereof at the Corporate Trust Office from the
Company (in the form of an Officers’ Certificate) or a Representative or a
holder or holders of Senior Indebtedness or from any trustee thereof; and
before the receipt of any such written notice, the Trustee shall be entitled in
all respects to assume that no such facts exist; provided
that, if on a date not less than one Business Day prior to the date upon which
by the terms hereof any such monies may become payable for any purpose
(including, without limitation, the payment of the principal of, or premium, if
any, or interest on, any Security) the Trustee shall not have received, with
respect to such monies, the notice provided for in this Section 9.05, then,
anything herein contained to the contrary notwithstanding, the Trustee shall
have full power and authority to receive such monies and to apply the same to
the purpose for which they were received and shall not be affected by any
notice to the contrary which may be received by it on or after such prior
date.  Notwithstanding anything in this
Article 9 to the contrary, nothing shall prevent any payment by the Trustee to
the Holders of monies deposited with it pursuant to Article 12, and any such
payment shall not be subject to the provisions of Article 9.

The
Trustee shall be entitled to rely on the delivery to it of a written notice by
a Representative or a person representing himself to be a holder of Senior
Indebtedness (or a trustee on behalf of such holder) to establish that such
notice has been given by a Representative or a holder of Senior Indebtedness or
a trustee on behalf of any such holder or holders.  In the event that the Trustee determines in
good faith that further evidence is required with respect to the right of any
person as a holder of Senior Indebtedness to participate in any payment or
distribution pursuant to this Article 9, the Trustee may request such Person to

 82
 

furnish evidence to the reasonable satisfaction of the
Trustee as to the amount of Senior Indebtedness held by such Person, the extent
to which such Person is entitled to participate in such payment or distribution
and any other facts pertinent to the rights of such Person under this Article
9, and if such evidence is not furnished the Trustee may defer any payment to
such Person pending judicial determination as to the right of such Person to
receive such payment.

Section 9.06.  Trustee’s Relation to Senior
Indebtedness.

The
Trustee in its individual capacity shall be entitled to all the rights set
forth in this Article 9 in respect of any Senior Indebtedness at any time held
by it, to the same extent as any other holder of Senior Indebtedness, and
nothing in this Indenture shall deprive the Trustee of any of its rights as
such holder.

With
respect to the holders of Senior Indebtedness, the Trustee undertakes to
perform or to observe only such of its covenants and obligations as are
specifically set forth in this Article 9, and no implied covenants or
obligations with respect to the holders of Senior Indebtedness shall be read
into this Indenture against the Trustee. 
The Trustee shall not be deemed to owe any fiduciary duty to the holders
of Senior Indebtedness, and, except with respect to its express obligations
under this Article 9, the Trustee shall not be liable to any holder of Senior
Indebtedness if it shall pay over or deliver to Holders of Securities, the
Company or any other person money or assets to which any holder of Senior
Indebtedness shall be entitled by virtue of this Article 9 or otherwise.

Section 9.07.  No Impairment of
Subordination.

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

Section 9.08.  Certain Conversions Deemed
Payment.

For
the purposes of this Article 9 only, (1) the issuance and delivery of junior
securities upon conversion of Securities in accordance with Article 6 shall not
be deemed to constitute a payment or distribution on account of the principal
of, or premium, if any, the cash portion of the conversion obligation, if any,
or interest on, Securities or on account of the purchase or other acquisition
of Securities, and (2) the payment, issuance or delivery of cash (except in
satisfaction of fractional shares pursuant to Article 6), property or
securities (other than junior securities) upon conversion of a Security shall
be deemed to constitute

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payment on account of the principal of such
Security.  For the purposes of this
Section 9.08, the term “junior securities” means (a) shares of any stock of any
class of the Company or (b) securities of the Company which are subordinated in
right of payment to all Senior Indebtedness which may be outstanding at the
time of issuance or delivery of such securities to substantially the same extent
as, or to a greater extent than, the Securities are so subordinated as provided
in this Article.  Nothing contained in
this Article or elsewhere in this Indenture or in the Securities is intended to
or shall impair, as among the Company, its creditors other than holders of
Senior Indebtedness and the Holders, the right, which is absolute and
unconditional, of the Holder of any Security to convert such Security in
accordance with Article 6.

Section 9.09.  Article Applicable to Paying
Agents.

If
at any time any Paying Agent other than the Trustee shall have been appointed
by the Company and be then acting hereunder, the term “Trustee”
as used in this Article shall (unless the context otherwise requires) be
construed as extending to and including such Paying Agent within its meaning as
fully for all intents and purposes as if such Paying Agent were named in this
Article in addition to or in place of the Trustee; provided,
however, that the first paragraph of Section 9.05 shall not apply to
the Company or any Affiliate of the Company if it or such Affiliate acts as
Paying Agent.

Section 9.10.  Senior Indebtedness Entitled
to Rely.

The
holders of Senior Indebtedness (including, without limitation, Designated
Senior Indebtedness) shall have the right to rely upon this Article 9, and no
amendment or modification of the provisions contained herein shall diminish the
rights of such holders unless such holders shall have agreed in writing
thereto.

Section 9.11.  Anti-Layering.

The
Company shall not incur, directly or indirectly, or otherwise become liable for
any Indebtedness which is subordinated or junior in right or payment to any
Senior Indebtedness unless such Indebtedness is Senior Subordinated
Indebtedness or is Subordinated Indebtedness, provided;
however, that nothing in this Section
9.11 shall limit the Company’s ability to incur unsecured Senior Indebtedness.

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ARTICLE
10

THE TRUSTEE

Section 10.01.  Duties and Responsibilities of
Trustee.  The Trustee, prior
to the occurrence of an Event of Default and after the curing of all Events of
Default which may have occurred, undertakes to perform such duties and only
such duties as are specifically set forth in this Indenture.  In case an Event of Default has occurred
(which has not been cured or waived), the Trustee shall exercise such of the
rights and powers vested in it by this Indenture, and use the same degree of
care and skill in their exercise, as a prudent person would exercise or use
under the circumstances in the conduct of his own affairs.

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

(a)                        prior to
the occurrence of an Event of Default and after the curing or waiving of all
Events of Default which may have occurred:

(i)                the duties and obligations of the Trustee shall be
determined solely by the express provisions of this Indenture and the Trust
Indenture Act, and the Trustee shall not be liable 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 and
the Trust Indenture Act against the Trustee; and

(ii)             in the absence of bad
faith and willful misconduct on
the part of the Trustee, the Trustee may 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 which by any provisions 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 to the requirements of this Indenture
(but need not confirm or investigate the accuracy of any mathematical
calculations or other facts stated therein);

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

(c)                        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 written direction of the
Holders of not less than a majority in Principal Amount of the Securities at
the time outstanding determined as provided in Section 1.04 relating to the
time,

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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;

(d)                       whether or
not therein provided, every provision of this Indenture relating to the conduct
or affecting the liability of, or affording protection to, the Trustee shall be
subject to the provisions of this Section;

(e)                        the
Trustee shall not be liable in respect of any payment (as to the correctness of
amount, entitlement to receive or any other matters relating to payment) or
notice effected by the Company or any other paying agent or any records
maintained by any co-registrar with respect to the Securities; and

(f)                          if any
party fails to deliver a notice relating to an event the fact of which,
pursuant to this Indenture, requires notice to be sent to the Trustee, the
Trustee may conclusively rely on its failure to receive such notice as reason
to act as if no such event occurred.

None
of the provisions contained in this Indenture shall require the Trustee to
expend or risk its own funds or otherwise incur personal financial liability 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 adequate indemnity against such risk or liability is not reasonably
assured to it.

Section 10.02.  Notice of Defaults.  If a Default occurs and is continuing of which
the Trustee has or is deemed to have notice under Section 10.03(i), the Trustee
shall give the Holders notice of the Default within 90 days after the
occurrence thereof; provided, that
(except in the case of any Default in the payment of Principal Amount or
Interest on any of the Securities or Fundamental Change Purchase Price), the
Trustee shall be protected in withholding such notice if and so long as a
committee of Responsible Officers of the Trustee in good faith determines that
the withholding of such notice is in the interest of the Holders of Securities.

Section 10.03.  Reliance on Documents,
Opinions, Etc.  Except as
otherwise provided in Section 10.01:

(a)                        the
Trustee may rely and shall be protected in acting upon any resolution,
certificate, statement, instrument, opinion, report, notice, request, consent,
order, bond, debenture, note, coupon or other paper or document (whether in its
original or facsimile form) believed by it in good faith to be genuine and to
have been signed or presented by the proper party or parties;

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(b)                       any
request, direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by an Officers’ Certificate (unless other evidence in
respect thereof be herein specifically prescribed); and any resolution of the
Board of Directors may be evidenced to the Trustee by a copy thereof certified
by the Secretary or an Assistant Secretary of the Company;

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

(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 provided to the Trustee security or indemnity
reasonably satisfactory to it against the costs, expenses and liabilities which
may be incurred therein or thereby;

(e)                        the
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture or other paper or
document, but the Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit, and, if the Trustee
shall determine to make such further inquiry or investigation, it shall be
entitled to examine the books, records and premises of the Company, personally
or by agent or attorney (at the reasonable expense of the Company and shall
incur no liability of any kind by reason of such inquiry or investigation);

(f)                          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 by it with due care hereunder;

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

(h)                       in no event
shall the Trustee be responsible or liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including, but not limited
to, loss of profit) irrespective of whether the Trustee has been advised of the
likelihood of such loss or damage and regardless of the form of action;

(i)                           the
Trustee shall not be deemed to have notice of any Default or Event of Default
unless a Responsible Officer of the Trustee has actual

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knowledge thereof or unless written notice of any
event which is in fact such a default is received by the Trustee at the
Corporate Trust Office of the Trustee, and such notice references the
Securities and the Indenture; and

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

Section 10.04.  No Responsibility for
Recitals, Etc.  The recitals
contained herein and in the Securities (except in the Trustee’s certificate 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 Indenture or of the Securities.  The Trustee shall not be accountable for the
use or application by the Company of any Securities or the proceeds of any
Securities authenticated and delivered by the Trustee in conformity with the
provisions of this Indenture.

Section 10.05.  Trustee, Paying Agents,
Conversion Agents or Registrar May Own Securities.  The Trustee, any paying agent, any
conversion 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, conversion agent or Security
Registrar.

Section 10.06.  Monies to be Held in
Trust.  Subject to the
provisions of Section 12.04, all monies and properties received by the Trustee shall,
until used or applied as herein provided, be held in trust for the purposes for
which they were received.  Money held by
the Trustee in trust hereunder need not be segregated from other funds except
to the extent required by law.  The
Trustee shall be under no liability for interest on any money received by it
hereunder except as may be agreed in writing from time to time by the Company
and the Trustee.

Section 10.07.  Compensation and Expenses of
Trustee.  The Company
covenants and agrees to pay to the Trustee from time to time, and the Trustee
shall be entitled to, reasonable compensation for all services rendered by it
hereunder in any capacity (which shall not be limited by any provision of law
in regard to the compensation of a trustee of an express trust) as mutually
agreed to from time to time in writing between the Company and the Trustee, and
the Company will pay or reimburse the Trustee upon its request for all
reasonable expenses, disbursements and advances reasonably 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 gross negligence,
willful misconduct or bad

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faith.  The
Company also covenants to indemnify the Trustee (or any officer, director or
employee of the Trustee), in any capacity under this Indenture and its agents
and any authenticating agent for, and to hold them harmless against, any and
all loss, liability, claim or expense incurred without gross negligence,
willful misconduct or bad faith on the part of the Trustee or such officers,
directors, employees and agent or authenticating agent, as the case may be, and
arising out of or in connection with the acceptance or administration of this
trust or in any other capacity hereunder, including the costs and expenses of
defending themselves against any claim of liability in the premises.  The obligations of the Company under this
Section 10.07 to compensate or indemnify the Trustee and to pay or reimburse
the Trustee for expenses, disbursements and advances 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
obligation of the Company under this Section shall survive the satisfaction and
discharge of this Indenture.

When
the Trustee and its agents and any authenticating agent incur expenses or
render services after an Event of Default specified in Section 7.01(i) with
respect to the Company occurs, the expenses and the compensation for the
services are intended to constitute expenses of administration under any
bankruptcy, insolvency or similar laws.

Section 10.08.  Officers’ Certificate as
Evidence.  Except as otherwise
provided in Section 10.01, 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 omitting any action hereunder, such
matter (unless other evidence in respect thereof be herein specifically
prescribed) may, in the absence of negligence or willful misconduct on the part
of the Trustee, be deemed to be conclusively proved and established by an
Officers’ Certificate delivered to the Trustee.

Section 10.09.  Conflicting Interests of
Trustee.  If the Trustee has
or shall acquire a conflicting interest within the meaning of the Trust
Indenture Act, the Trustee shall either eliminate such interest or resign, to
the extent and in the manner provided by, and subject to the provisions of, the
Trust Indenture Act and this Indenture.

Section 10.10.  Eligibility of Trustee.  There shall at all times be a
Trustee hereunder which shall be a Person that is eligible pursuant to the
Trust Indenture Act to act as such and has a combined capital and surplus of at
least $50,000,000 (or if such Person is a member of a bank holding company
system, its bank holding company shall have a combined capital and surplus of
at least $50,000,000).  If such Person
publishes reports of condition at least annually, pursuant to law or to the
requirements of any supervising or examining authority, then for the purposes
of this Section the combined capital and surplus of such

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Person shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published.  If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section 10.10, it shall
resign immediately in the manner and with the effect hereinafter specified in
this Article.

Section 10.11.  Resignation or Removal of
Trustee.

(a)                        The
Trustee may at any time resign by giving written notice of such resignation to
the Company and to the Holders of Securities. 
Upon receiving such notice of resignation, the Company shall promptly
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 resigning Trustee and one copy to the successor trustee.  If no successor trustee shall have been so
appointed and have accepted appointment 60 days after the mailing of such
notice of resignation to the Securityholders, the resigning Trustee may, upon
ten business days’ notice to the Company and the Securityholders, appoint a
successor identified in such notice or may petition, at the expense of the
Company, any court of competent jurisdiction for the appointment of a successor
trustee, or, any Securityholder who has been a bona fide Holder of a Security
or Securities for at least 6 months may, subject to the provisions of Section
7.13, 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 of the following shall occur:

(i)                the Trustee shall
fail to comply with Section 10.09 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 6 months; or

(ii)             the Trustee shall cease to be eligible in
accordance with the provisions of Section 10.10 and shall fail to resign after written
request therefor by the Company or by any such Securityholder; or

(iii)          the Trustee shall become incapable of
acting, or shall be adjudged a bankrupt or insolvent, or a receiver of the
Trustee or of its property shall be appointed, or any public officer shall take
charge or control of the Trustee or of its property or affairs for the purpose
of rehabilitation, conservation or liquidation; then, in any such case, the
Company may remove the Trustee 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, subject to the

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provisions of Section
7.13, any Securityholder who has been a bona fide Holder of a Security or
Securities for at least 6 months may, on behalf of himself and all others
similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor trustee; provided, however, that
if no successor Trustee shall have been appointed and have accepted appointment
60 days after either the Company or the Securityholders has removed the
Trustee, the Trustee so removed may petition at its own expense any court of
competent jurisdiction for an 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 at the
time outstanding may at any time remove the Trustee and nominate a successor
trustee which shall be deemed appointed as successor trustee unless, within ten
days after notice to the Company of such nomination, the Company objects
thereto, in which case the Trustee so removed or any Securityholder, or if such
Trustee so removed or any Securityholder fails to act, the Company, upon the
terms and conditions and otherwise as in Section 10.11(a) provided, may
petition any court of competent jurisdiction for an appointment of a successor
trustee.

(d)                       Any
resignation or removal of the Trustee and appointment of a successor trustee
pursuant to any of the provisions of this Section 10.10 shall become effective
upon acceptance of appointment by the successor trustee as provided in Section
10.12.

Section 10.12.  Acceptance by Successor
Trustee.  Any successor
trustee appointed as provided in Section 10.11 shall execute, acknowledge and
deliver to the Company and to its predecessor trustee an instrument accepting
such appointment hereunder, and thereupon the resignation or removal of the
predecessor trustee shall become effective and such successor trustee, without
any further act, deed or conveyance, shall become vested with all the rights, powers,
duties and obligations of its predecessor hereunder, with like effect as if
originally named as trustee herein; but, nevertheless, on the written request
of the Company or of the successor trustee, the trustee ceasing to act shall,
upon payment of any amount then due it pursuant to the provisions of Section
10.07, execute and deliver an instrument transferring to such successor trustee
all the rights and powers of the trustee so ceasing to act.  Upon request of any such successor trustee,
the Company shall execute any and all instruments in writing for more fully and
certainly vesting in and confirming to such successor trustee all such rights
and powers.  Any trustee ceasing to act
shall, nevertheless, retain a lien upon all property and funds held or collected
by such trustee as such, except for funds held in trust for the benefit of
Holders of particular Securities, to secure any amounts then due it pursuant to
the provisions of Section 10.07.

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No
successor trustee shall accept appointment as provided in this Section 10.12
unless, at the time of such acceptance, such successor trustee shall be
qualified under the provisions of Section 10.09 and be eligible under the
provisions of Section 10.10.

Upon
acceptance of appointment by a successor trustee as provided in this Section
10.12, the Company (or the former trustee, at the written direction of the
Company) shall mail or cause to be mailed notice of the succession of such
trustee hereunder to the Holders of Securities at their addresses as they shall
appear on the Security Register.  If the
Company fails to mail such notice within ten days after acceptance of
appointment by the successor trustee, the successor trustee shall cause such
notice to be mailed at the expense of the Company.

Section 10.13.  Succession by Merger,
Etc.  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 all or substantially all of the corporate trust business of the
Trustee (including any trust created by this Indenture), shall be the successor
to the Trustee hereunder without the execution or filing of any paper or any
further act on the part of any of the parties hereto, provided
that in the case of any corporation succeeding to all or substantially all of
the corporate trust business of the Trustee, such corporation shall be
qualified under the provisions of Section 10.09 and eligible under the
provisions of Section 10.10.

In
case at the time such successor to the Trustee shall succeed to the trusts
created by this Indenture, any of the Securities shall have been authenticated
but not delivered, any such successor to the Trustee may adopt the certificate
of authentication of any predecessor trustee or authenticating agent appointed
by such predecessor trustee, and deliver such Securities so authenticated; and
in case at that time any of the Securities shall not have been authenticated, any
successor to the Trustee or any authenticating agent appointed by such
successor trustee may authenticate such Securities in the name of the successor
trustee; and in all such cases such certificates shall have the full force that
is provided in the Securities or in this Indenture; provided,
however, that the right to adopt the
certificate of authentication of any predecessor Trustee or authenticate
Securities in the name of any predecessor Trustee shall apply only to its
successor or successors by merger, conversion or consolidation.

Section 10.14.  Preferential Collection of
Claims.  If and when the
Trustee shall be or become a creditor of the Company (or any other obligor upon
the Securities), the Trustee shall be subject to the provisions of the Trust
Indenture Act regarding the collection of the claims against the Company (or
any such other obligor).

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ARTICLE
11

HOLDERS’ LISTS AND REPORTS BY TRUSTEE

Section 11.01.  Company to Furnish Trustee
Names and Addresses of Holders.  The
Company will furnish or cause to be furnished to the Trustee:

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

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

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

Section 11.02.  Preservation of Information;
Communications to Holders.

(a)                        The
Trustee shall preserve, in as current a form as is reasonably practicable, the
names and addresses of Holders contained in the most recent list furnished to
the Trustee as provided in Section 11.01 and the names and addresses of Holders
received by the Trustee in its capacity as Security Registrar.  The Trustee may destroy any list furnished to
it as provided in Section 11.01 upon receipt of a new list so furnished.

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

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

Section 11.03.  Reports By Trustee.  The Trustee shall transmit to
Holders such reports concerning the Trustee and its actions under this
Indenture as may be required pursuant to the Trust Indenture Act at the times
and in the manner provided pursuant thereto. 
Reports so required to be transmitted at stated intervals of not more
than 12 months shall be transmitted no later than December 31

 93
 

of each calendar year, commencing on December 31,
2007.  Each such report shall be dated as
of a date not more than 60 days prior to the date of transmission.

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

Section 11.04.  Reports by Company.  The Trustee’s receipt of reports,
information and documents delivered by the Company pursuant to its obligations
under Section 4.06 shall not constitute constructive notice to the Trustee of
any information contained therein or determinable from information contained
therein, including the Company’s compliance with any of its covenants
hereunder, except for the covenants in Section 4.06 (as to which the Trustee is
entitled to conclusively rely exclusively on an Officers’ Certificate).

ARTICLE
12

Satisfaction
and Discharge

Section 12.01.  Discharge of Indenture. When
(a) the Company shall deliver to the Trustee for cancellation all Securities
theretofore authenticated (other than any Securities that have been destroyed,
lost or stolen and in lieu of or in substitution for which other Securities
shall have been authenticated and delivered) and not theretofore canceled, or
(b) all the Securities not theretofore canceled or delivered to the Trustee for
cancellation shall have become due and payable (whether at Stated Maturity, or
on any Fundamental Change Purchase Date or upon conversion or otherwise) and
the Company shall have deposited with the Trustee, in trust, cash funds and
shares of Common Stock, as applicable, sufficient to pay all amounts due (and
shares of Common Stock deliverable following conversion, if applicable) on all
of such Securities (other than any Securities that shall have been mutilated,
destroyed, lost or stolen and in lieu of or in substitution for which other
Securities shall have been authenticated and delivered) not theretofore
canceled or delivered to the Trustee for cancellation, including principal and
interest, including Additional Interest, if any, due, accompanied, except in
the event the Securities are due and payable solely in cash upon a Fundamental
Change Purchase Date, by a verification report as to the sufficiency of the
deposited amount from an independent certified accountant, and if the Company
shall also pay or cause to be paid all other sums payable hereunder by the
Company, then this Indenture shall cease to be of further effect (except as to
(i) remaining rights of registration of transfer, substitution and exchange and
conversion of Securities, (ii) rights hereunder of Securityholders to receive
payments of principal of and interest, including Additional Interest, if any,
on, the Securities and the other rights, duties and obligations of Securityholders,

 94
 

as beneficiaries hereof with respect to the amounts,
if any, so deposited with the Trustee and (iii) the rights, obligations and
immunities of the Trustee hereunder), and the Trustee, on written demand of the
Company accompanied by an Officers’ Certificate and an Opinion of Counsel as
required by Section 1.02 and at the cost and expense of the Company, shall
execute proper instruments acknowledging satisfaction and discharge of this
Indenture; the Company, however, hereby agrees to reimburse the Trustee for any
costs or expenses thereafter reasonably and properly incurred by the Trustee
and to compensate the Trustee for any services thereafter reasonably and
properly rendered by the Trustee in connection with this Indenture or the
Securities.

Section 12.02.  Deposited Monies to be Held in
Trust by Trustee.  Subject to Section 12.04, all monies
deposited with the Trustee pursuant to Section 12.01 shall be held in trust for
the sole benefit of the Securityholders, and such monies shall be applied by
the Trustee to the payment, either directly or through any paying agent
(including the Company if acting as its own paying agent), to the Holders of
the particular Securities for the payment or redemption of which such monies
have been deposited with the Trustee, of all sums due and to become due thereon
for principal and interest, including Additional Interest, if any.

Section 12.03.  Paying Agent to Repay
Monies Held.  Upon the satisfaction and discharge of this
Indenture, all monies then held by any paying agent of the Securities (other
than the Trustee) shall, upon written request of the Company, be repaid to it
or paid to the Trustee, and thereupon such paying agent shall be released from
all further liability with respect to such monies.

Section 12.04.  Return of Unclaimed Monies.  Subject to the requirements of applicable law, any monies deposited
with or paid to the Trustee for payment of the principal of or interest,
including Additional Interest, if any, on Securities and not applied but remaining
unclaimed by the Holders of Securities for two years after the date upon which
the principal of or interest, including Additional Interest, if any, on such
Securities, as the case may be, shall have become due and payable, shall be
repaid to the Company by the Trustee on demand and all liability of the Trustee
shall thereupon cease with respect to such monies; and the Holder of any of the
Securities shall thereafter look only to the Company for any payment that such
Holder may be entitled to collect unless an applicable abandoned property law
designates another Person.

Section 12.05.  Reinstatement.  If the Trustee or the paying agent is unable to apply any money in
accordance with Section 12.02 by reason of any order or judgment of any court
or governmental authority enjoining, restraining or otherwise prohibiting such
application, the Company’s obligations under this Indenture and the Securities
shall be revived and reinstated as though no deposit had occurred pursuant to
Section 12.01 until such time as the Trustee or the paying agent is permitted
to apply all such money in accordance with Section

 95
 

12.02; provided,
however, that if the Company makes any
payment of interest on or principal of any Security following the reinstatement
of its obligations, the Company shall be subrogated to the rights of the
Holders of such Securities to receive such payment from the money held by the
Trustee or paying agent.

ARTICLE
13

Supplemental
Indentures

Section 13.01.  Supplemental Indentures
Without Consent of Holders.  Without
the consent of any Holders, the Company, when authorized by a Board Resolution,
and the Trustee, at any time and from time to time, may enter into one or more
indentures supplemental hereto, in form satisfactory to the Trustee, for any of
the following purposes:

(i)                                     to
cure any ambiguity, omission, defect or inconsistency contained herein;

(ii)                                  to
provide for the assumption by a successor corporation, partnership, trust or
limited liability company of the obligations of the Company contained herein;

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

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

(v)                                 to
secure the Securities;

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

(vii)                           to add
or modify any other provision herein with respect to matters or questions
arising hereunder which the Company and the Trustee may deem necessary or
desirable and which does not materially and adversely affect the rights of any
Holder;

(viii)                        to modify,
eliminate or add to the provisions of this Indenture to such extent as shall be
necessary to comply with any requirement of the Commission to effect the
qualifications of this

 96
 

Indenture under the Trust
Indenture Act, or under any similar federal statute hereafter enacted; or

(ix)                                to
conform the provisions of this Indenture to the section entitled “Description
of Notes” as set forth in the final offering memorandum related to the
Securities dated January 16, 2007.

Section 13.02.  Supplemental Indentures With
Consent of Holders.  With the
consent of the Holders of not less than a majority in aggregate Principal
Amount of the Outstanding Securities, by Act of said Holders delivered to the
Company and the Trustee (including, without limitation, consents obtained in
connection with a purchase of, or tender offer or exchange offer for,
Securities), the Company, when authorized by a Board Resolution, and the
Trustee may enter into an indenture or indentures supplemental hereto for the
purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of this Indenture or of modifying in any manner the
rights of the Holders under this Indenture; provided, however,
that no such supplemental indenture shall, without the consent of the Holder of
each Outstanding Security affected thereby,

(i)                                     reduce
the amount of Securities whose Holders must consent to an amendment or waiver;

(ii)                                  reduce the
rate of or extend the stated time for payment of any interest, including
Additional Interest, if any, on any Security;

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

(iv)                              make any
change that adversely affects the conversion rights of any Securities;

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

(vi)                              make any
Security payable in money other than that stated in such Security;

(vii)                           impair
the right of a Holder to receive payment of principal and interest, including
Additional Interest, if any, on such Holder’s Securities on or after the due
dates thereof or to institute a suit for the enforcement of any payment on or
with respect to such Holder’s Securities;

 97
 

(viii)                        modify any of
the provisions of this Section 13.02 or Section 7.12, except to increase any
such percentage or to provide that certain other provisions of this Indenture
cannot be modified or waived without the consent of the Holder of each
Outstanding Security affected thereby.

It
shall not be necessary for any Act of Holders under this Section 13.02 to
approve the particular form of any proposed supplemental indenture, but it
shall be sufficient if such Act shall approve the substance thereof.

Section 13.03.  Execution of Supplemental
Indentures.  In executing, or
accepting the additional trusts created by, any supplemental indenture
permitted by this Article 13 or the modifications thereby of the trusts created
by this Indenture, the Trustee shall be provided with, and (subject to Section
10.01) shall be fully protected in relying upon, in addition to the documents required
by Section 1.02, an Opinion of Counsel stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture.  Subject to the preceding sentence, the
Trustee shall sign such supplemental indenture if the same does not adversely
affect the Trustee’s own rights, duties or immunities under this Indenture or
otherwise.  The Trustee may, but shall
not be obligated to, enter into any such supplemental indenture that adversely
affects the Trustee’s own rights, duties or immunities under this Indenture or
otherwise.

Section 13.04.  Effect of Supplemental
Indentures.  Upon the
execution of any supplemental indenture under this Article 13, this Indenture
shall be modified in accordance therewith, and such supplemental indenture
shall form a part of this Indenture for all purposes; and every Securityholder
theretofore or thereafter authenticated and delivered hereunder shall be bound
thereby.

Section 13.05.  Conformity with Trust
Indenture Act.  Every
supplemental indenture executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act.

Section 13.06.  Reference in Securities to
Supplemental Indentures.  Securities
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article 13 shall bear a notation in form approved by the
Trustee as to any matter provided for in such supplemental indenture.  If the Company shall so determine, new
Securities so modified as to conform, in the opinion of the Trustee and the Company,
to any such supplemental indenture may be prepared and executed by the Company
and authenticated and delivered by the Trustee in exchange for Outstanding
Securities.

Section 13.07. Notice to
Holders of Supplemental Indentures.  The Company
shall cause notice of the execution of any supplemental indenture to be mailed
to each Securityholder, at his address appearing on the Security Register

 98
 

provided for in this Indenture, within 20 days after execution thereof. Failure to deliver such notice, or any defect
in such notes, shall not affect the legality or validity of such supplemental
indenture.

ARTICLE
14

Miscellaneous

Section 14.01.  Communication by Holders with
other Holders.  Holders may
communicate pursuant to TIA § 312(b) with other Holders with respect to their
rights under this Indenture or the Securities. 
The Company, the Trustee, the Security Registrar and anyone else shall
have the protection of TIA § 312(c).

Section 14.02.  When Securities Are
Disregarded.  In determining
whether the Holders of the required Principal Amount of Securities have
concurred in any direction, waiver or consent, Securities owned by the Company
or by any Person directly or indirectly controlling or controlled by or under
direct or indirect common control with the Company shall be disregarded and
deemed not to be outstanding, except that, for the purpose of determining
whether the Trustee shall be protected in relying on any such direction, waiver
or consent, only Securities which a Responsible Officer of the Trustee actually
knows are so owned shall be so disregarded. 
Also, subject to the foregoing, only Securities outstanding at the time
shall be considered in any such determination.

Section 14.03.  Rules by Trustee, Paying Agent
and Security Registrar.  The
Trustee may make reasonable rules for action by, or a meeting of, Holders.  The Security Registrar and the Paying Agent
may make reasonable rules for their functions.

Section 14.04.  Successors.  All agreements of the Company in
this Indenture and the Securities shall bind their respective successors.  All agreements of the Trustee in this
Indenture shall bind its successors.

Section 14.05.  Multiple Originals.  The parties may sign any number of
copies of this Indenture.  Each signed
copy shall be an original, but all of them together represent the same
agreement.  One signed copy is enough to
prove this Indenture.

Section 14.06.  Qualification of
Indenture.  The Company shall
qualify this Indenture under the TIA in accordance with the terms and
conditions of the Registration Rights Agreement and shall pay all reasonable
costs and expenses (including attorneys’ fees and expenses for the Company, the
Trustee and the Holders) incurred in connection therewith, including, but not
limited to, costs and expenses of qualification of this Indenture and the
Securities and the printing of this Indenture and the Securities.

 99
 

Section 14.07.  Calculations.  Except as otherwise provided herein, the
Company will be responsible for making all calculations called for under the
Indenture and the Securities. The Company will make all such calculations in
good faith and, absent manifest error, its calculations will be final and
binding on Holders. The Company upon request will provide a schedule of its
calculations to each of the Trustee and the Conversion Agent, and each of the
Trustee and Conversion Agent is entitled to rely conclusively upon the accuracy
of the Company’s calculations without independent verification. The Trustee
will deliver a copy of such schedule to any Holder upon the request of such
Holder.

Section 14.08.  Waiver of Jury Trial.  EACH OF THE COMPANY AND THE
TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE NOTES OR THE TRANSACTION
CONTEMPLATED THEREBY.

Section 14.09.  Force Majeure.  In no event shall the Trustee be
responsible or liable for any failure or delay in the performance of its
obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including, without limitation, strikes, work
stoppages, accidents, acts of war or terrorism, civil or military disturbances,
nuclear or natural catastrophes or acts of God, and interruptions, loss or
malfunctions of utilities, communications or computer (software or hardware)
services; it being understood that the Trustee shall use reasonable efforts
which are consistent with accepted practices in the banking industry to resume
performance as soon as practicable under the circumstances.

[Remainder
of the page intentionally left blank]

 100

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

	
   

  	
  HEADWATERS INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

[Trustee Signature Follows]

 

	
   

  	
  WELL
  FARGO BANK, NATIONAL

  ASSOCIATION, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:
  [                  ]

  
	
   

  	
  Title: Authorized Representative

  

 

SCHEDULE
A

The following table sets forth the number of
Additional Shares to be added to the Conversion Rate per $1,000 Principal
Amount of Securities pursuant to Section 6.06 of this Indenture:

Stock price

	
  Effective

  Date

  	
   

  	
  $23.12

  	
   

  	
  $27.00

  	
   

  	
  $31.00

  	
   

  	
  $35.00

  	
   

  	
  $39.00

  	
   

  	
  $43.00

  	
   

  	
  $47.00

  	
   

  	
  $51.00

  	
   

  	
  $55.00

  	
   

  	
  $59.00

  	
   

  	
  $63.00

  	
   

  	
  $67.00

  	
   

  	
  $71.00

  	
   

  	
  $75.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  January 22, 2007

  	
   

  	
  9.3290

  	
   

  	
  7.2640

  	
   

  	
  5.5781

  	
   

  	
  4.3991

  	
   

  	
  3.5436

  	
   

  	
  2.9038

  	
   

  	
  2.4131

  	
   

  	
  2.0286

  	
   

  	
  1.7216

  	
   

  	
  1.4726

  	
   

  	
  1.2677

  	
   

  	
  1.0972

  	
   

  	
  0.9538

  	
   

  	
  0.8320

  	
   

  
	
  February 1, 2008

  	
   

  	
  9.3290

  	
   

  	
  7.1564

  	
   

  	
  5.4150

  	
   

  	
  4.2141

  	
   

  	
  3.3549

  	
   

  	
  2.7209

  	
   

  	
  2.2408

  	
   

  	
  1.8689

  	
   

  	
  1.5752

  	
   

  	
  1.3392

  	
   

  	
  1.1469

  	
   

  	
  0.9879

  	
   

  	
  0.8551

  	
   

  	
  0.7430

  	
   

  
	
  February 1, 2009

  	
   

  	
  9.3290

  	
   

  	
  6.9966

  	
   

  	
  5.1910

  	
   

  	
  3.9678

  	
   

  	
  3.1086

  	
   

  	
  2.4859

  	
   

  	
  2.0224

  	
   

  	
  1.6692

  	
   

  	
  1.3943

  	
   

  	
  1.1764

  	
   

  	
  1.0008

  	
   

  	
  0.8572

  	
   

  	
  0.7383

  	
   

  	
  0.6386

  	
   

  
	
  February 1, 2010

  	
   

  	
  9.3290

  	
   

  	
  6.7494

  	
   

  	
  4.8711

  	
   

  	
  3.6288

  	
   

  	
  2.7778

  	
   

  	
  2.1768

  	
   

  	
  1.7403

  	
   

  	
  1.4154

  	
   

  	
  1.1680

  	
   

  	
  0.9756

  	
   

  	
  0.8231

  	
   

  	
  0.7003

  	
   

  	
  0.5998

  	
   

  	
  0.5165

  	
   

  
	
  February 1, 2011

  	
   

  	
  9.3290

  	
   

  	
  6.3956

  	
   

  	
  4.4269

  	
   

  	
  3.1681

  	
   

  	
  2.3376

  	
   

  	
  1.7736

  	
   

  	
  1.3797

  	
   

  	
  1.0973

  	
   

  	
  0.8895

  	
   

  	
  0.7329

  	
   

  	
  0.6121

  	
   

  	
  0.5170

  	
   

  	
  0.4404

  	
   

  	
  0.3778

  	
   

  
	
  February 1, 2012

  	
   

  	
  9.3290

  	
   

  	
  5.8515

  	
   

  	
  3.7683

  	
   

  	
  2.5072

  	
   

  	
  1.7272

  	
   

  	
  1.2335

  	
   

  	
  0.9128

  	
   

  	
  0.6986

  	
   

  	
  0.5511

  	
   

  	
  0.4462

  	
   

  	
  0.3690

  	
   

  	
  0.3104

  	
   

  	
  0.2645

  	
   

  	
  0.2274

  	
   

  
	
  February 1, 2013

  	
   

  	
  9.3290

  	
   

  	
  4.9660

  	
   

  	
  2.7050

  	
   

  	
  1.4877

  	
   

  	
  0.8434

  	
   

  	
  0.5043

  	
   

  	
  0.3245

  	
   

  	
  0.2268

  	
   

  	
  0.1712

  	
   

  	
  0.1373

  	
   

  	
  0.1149

  	
   

  	
  0.0987

  	
   

  	
  0.0861

  	
   

  	
  0.0757

  	
   

  
	
  February 1, 2014

  	
   

  	
  9.3290

  	
   

  	
  3.0969

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  

 

EXHIBIT A

Form of Fundamental
Change Purchase Notice

                              ,           

Wells Fargo Bank, National Association

Sixth & Marquette

N9303-120

Minneapolis, MN 55479

Attention: Corporate
Trust Services

Re:                               Headwaters
Incorporated (the “Company”) 

2.50% Convertible Senior Subordinated Notes due 2014

This
is a Fundamental Change Purchase Notice as defined in Section 5.01(a) of the
Indenture dated as of January 22, 2007 (the “Indenture”)
between the Company and Wells Fargo Bank, National Association, as
Trustee.  Terms used but not defined
herein shall have the meanings ascribed to them in the Indenture.

	
  Certificate No(s). of Securities:

  	
   

  	
   

  
	
  (if certificated)

  	
   

  
	
   

  	
   

  
	
  I intend to deliver the
  following aggregate Principal Amount of Securities for purchase by the
  Company pursuant to Section 5.01 of the Indenture (in multiples of $1,000):

  	
   

  
	
   

  	
   

  
	
  $

  	
   

  	
   

  
						

 

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

	
  

  	
  Signed:

  	
   

  	
   

  

 

EXHIBIT B

THIS SECURITY HAS NOT
BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT AS SET
FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER AGREES
(1) THAT IT WILL NOT WITHIN THE LATER OF (X) TWO YEARS AFTER THE ORIGINAL
ISSUANCE OF THIS SECURITY AND (Y) THREE MONTHS AFTER IT CEASES TO BE AN AFFILIATE
(WITHIN THE MEANING OF RULE 144 ADOPTED UNDER THE SECURITIES ACT) OF THE
ISSUER, RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY OR THE
COMMON STOCK ISSUABLE UPON CONVERSION OF SUCH SECURITY, EXCEPT (A) TO THE
ISSUER; (B) UNDER A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE
UNDER THE SECURITIES ACT; (C) TO A PERSON THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A ADOPTED UNDER THE
SECURITIES ACT) THAT IS PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF
ANOTHER QUALIFIED INSTITUTIONAL BUYER AND TO WHOM NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, ALL IN COMPLIANCE WITH RULE
144A (IF AVAILABLE); OR (D) UNDER ANY OTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT; AND (2) THAT IT WILL, PRIOR TO
ANY TRANSFER OF THIS SECURITY WITHIN THE LATER OF (X) TWO YEARS AFTER THE
ORIGINAL ISSUANCE OF THIS SECURITY AND (Y) THREE MONTHS AFTER IT CEASES TO BE
AN AFFILIATE (WITHIN THE MEANING OF RULE 144 ADOPTED UNDER THE SECURITIES ACT)
OF THE ISSUER, FURNISH TO THE TRUSTEE AND THE ISSUER SUCH CERTIFICATIONS, LEGAL
OPINIONS OR OTHER INFORMATION AS MAY BE REQUIRED PURSUANT TO THE INDENTURE TO
CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A
TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT.Exhibit 4.2

$160,000,000

Headwaters Incorporated

2.50% Convertible Senior Subordinated Notes due 2014

Registration Rights Agreement

 

January 22, 2007

J.P. Morgan Securities Inc.

As Representative of the Initial Purchasers

270 Park Avenue

New York, New York 10017

Ladies and Gentlemen:

Headwaters Incorporated, a Delaware
corporation (the “Company”),
proposes to issue and sell to the initial purchasers (the “Initial
Purchasers”) listed on Schedule 1 to
the purchase agreement dated January 16, 2007 (the “Purchase Agreement”), for whom J.P. Morgan Securities Inc. is
acting as representative (the “Representative”),
$160,000,000 aggregate principal amount of its 2.50% Convertible Senior
Subordinated Notes due 2014 (the “Notes”), upon
the terms and subject to the conditions set forth in the Purchase Agreement.

In
satisfaction of a condition to the obligations of the Initial Purchasers under
the Purchase Agreement, the Company agrees with the Initial Purchasers, for the
benefit of the holders (including the Initial Purchasers) of the Notes and the
Shares (as defined below), as follows:

1.                     Certain Definitions.

Capitalized
terms used but not defined herein shall have the meanings given to such terms
in the Purchase Agreement.  For purposes
of this Registration Rights Agreement, the following terms shall have the
following meanings:

(a)           “Additional
Interest” has the meaning assigned thereto in Section 2(e).

(b)           “Additional
Interest Payment Date” has the meaning assigned thereto in Section
2(e).

 1
 

(c)           “Affiliate”
has the meaning set forth in Rule 405 under the Securities Act, except as
otherwise expressly provided herein.

(d)           “Agreement”
means this Registration Rights Agreement, as the same may be amended from time
to time pursuant to the terms hereof.

(e)           “Business
Day” means any day that is not a Saturday, Sunday or other day on
which commercial banks in New York City are authorized or required by law to
remain closed.

(f)            “Closing
Date” means the date on which any Notes are initially issued.

(g)           “Commission”
means the Securities and Exchange Commission, or any other federal agency at
the time administering the Exchange Act or the Securities Act, whichever is the
relevant statute for the particular purpose.

(h)           “Company”
has the meaning specified in the first paragraph of this Agreement.

(i)            “Deferral Notice” has the meaning assigned thereto in Section
3(b).

(j)            “Deferral
Period” has the meaning assigned thereto in Section 3(b).

(k)           “Effective
Period” has the meaning assigned thereto in Section 2(a).

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

(m)          “Holder”
means each holder, from time to time, of Registrable Securities (including the
Initial Purchasers).

(n)           “Indenture”
means the Indenture dated as of January 22, 2007 among the Company and Wells
Fargo Bank, National Association, as Trustee, pursuant to which the Notes are
being issued.

(o)           “Initial
Purchasers” has the meaning specified in the first paragraph of this
Agreement.

(p)           “Material Event” has the meaning assigned thereto in Section 3(a)(iii).

(q)           “Majority Holders” shall mean, on any date, Holders of the majority of the
Shares constituting Registrable Securities hereunder; for the purposes of this
definition, Holders of Notes constituting Registrable Securities shall be
deemed to be the Holders of the number of Shares equal to the applicable
Conversion Rate (as defined in the Indenture) as of such date multiplied by the aggregate number of
$1,000 principal amount of Notes held by such Holder.

 2
 

(r)            “NASD”
shall mean the National Association of Securities Dealers, Inc.

(s)           “Notes”
has the meaning specified in the first paragraph of this Agreement.

(t)           “Notice and Questionnaire” means a written
notice delivered to the Company containing substantially the information called
for by the Form of Selling Securityholder Notice and Questionnaire attached as
Annex A to the Offering Memorandum.

(u)           “Notice
Holder” means, on any date, any Holder that has delivered a Notice
and Questionnaire to the Company on or prior to such date.

(v)           “Offering
Memorandum” means the Offering Memorandum dated January 16, 2007
relating to the offer and sale of the Notes.

(w)          “Person”
means a corporation, limited liability company, association, partnership,
organization, business, individual, government or political subdivision thereof
or governmental agency.

(x)            “Prospectus”
means the prospectus included in any Shelf Registration Statement (including,
without limitation, a prospectus that discloses information previously omitted
from a prospectus filed as part of an effective registration statement in
reliance upon Rule 430A under the Securities Act), as amended or
supplemented by any amendment or prospectus supplement, including
post-effective amendments, and all materials incorporated by reference or
explicitly deemed to be incorporated by reference in such Prospectus.

(y)           “Purchase
Agreement” has the meaning specified in the first paragraph of this
Agreement.

(z)            “Registrable
Securities” means the Securities; provided,
however, that such Securities shall cease to be Registrable
Securities when (i) such Securities shall cease to be outstanding (including,
in the case of the Notes, upon conversion into Shares); (ii) a registration
statement registering such Securities under the Securities Act has been
declared or becomes effective and such Securities have been sold or otherwise
transferred or disposed of by the Holder thereof pursuant to such effective
registration statement; (iii) such Securities are sold or distributed pursuant
to Rule 144 under circumstances in which any legend borne by such Securities
relating to restrictions on transferability thereof, under the Securities Act
or otherwise, is removed pursuant to the Indenture; or (iv) such Securities are
eligible to be sold pursuant to Rule 144(k) or any successor provision
(assuming such Securities are not then owned, and were not previously owned in
the immediately preceding two-year period, by an Affiliate of the Company).

(aa)        “Registration Default” has the meaning
assigned thereto in Section 2(e).

(bb)         “Registration Expenses”
has the meaning assigned thereto in Section 5.

 3
 

(cc)         “Restricted Securities”
has the meaning set forth under Rule 144.

(dd)         “Rule 144,” “Rule 144A,” “Rule
405” and “Rule 415”
mean, in each case, such rule as promulgated under the Securities Act.

(ee)        “Securities” means, collectively, the Notes
and the Shares.

(ff)           “Securities Act”
means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

(gg)         “Shares” means
the shares of Common Stock of the Company (as defined in the Indenture), into
which the Notes are convertible or that have been issued upon any conversion of
Notes.

(hh)        “Shelf Registration Statement” means the
shelf registration statement referred to in Section 2(a), as amended or
supplemented by any amendment or supplement, including post-effective
amendments and any additional information contained in a form of prospectus or
prospectus supplement that is deemed retroactively to be a part of the shelf
registration statement pursuant to Rules 430A, 430B or 430C, and all materials
incorporated by reference or explicitly deemed to be incorporated by reference
in such Shelf Registration Statement.

(ii)           “Special Counsel”
shall have the meaning assigned thereto in Section 5.

(jj)           “Trust Indenture Act”
means the Trust Indenture Act of 1939, as amended, or any successor thereto,
and the rules, regulations and forms promulgated thereunder, all as the same
shall be amended from time to time.

(kk)        “Trustee” shall have the meaning assigned
such term in the Indenture.

Unless the context
otherwise requires, any reference herein to a “Section” or “clause” refers to a
Section or clause, as the case may be, of this Agreement, and the words “herein,”
“hereof” and “hereunder” and other words of similar import refer to this
Agreement as a whole and not to any particular Section or other
subdivision.  Unless the context
otherwise requires, any reference to a statute, rule or regulation refers to
the same (including any successor statute, rule or regulation thereto) as it
may be amended from time to time.

2.                     Registration Under the Securities Act.

(a)           The Company agrees to file under the
Securities Act as soon as practicable, but in any event within 90 days after
the Closing Date, a shelf registration statement providing for the registration
of, and the sale on a continuous or delayed basis by the Holders of, all of the
Registrable Securities, pursuant to Rule 415 or any similar rule that may be
adopted by the Commission; provided that
such registration statement shall be an “automatic shelf registration
statement,” as such term is defined in Rule 405 under the Securities Act, if
the Company is eligible to use automatic shelf registration statements at the
time of filing.  If the Shelf Registration
Statement is not an automatic

 4
 

shelf registration
statement, the Company agrees to use commercially reasonable efforts to cause
the Shelf Registration Statement to be declared effective as promptly as
possible, but in any event no later than 180 days after the Closing Date.  Subject to the Company’s right to suspend use
of the Shelf Registration Statement under Section 3(b), the Company agrees to
use commercially reasonable efforts to keep such Shelf Registration Statement
continuously effective until the earlier of (i) the second anniversary of the
Closing Date or (ii) such time as each of the Registrable Securities covered by
the Shelf Registration Statement ceases to be a Registrable Security (as
defined herein) (the “Effective Period”).

(b)           The Company further agrees
that it shall cause the Shelf Registration Statement, the related Prospectus
and any amendment or supplement thereto, as of the effective date of the Shelf
Registration Statement, and as
of the date of any such amendment or supplement, (i) to comply in all material respects with the applicable requirements
of the Securities Act and (ii) not to contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary in order to make the statements therein (in the case of the
Prospectus, in the light of the circumstances under which they were made) not
misleading, and the Company agrees to furnish to the Holders of the Registrable
Securities seeking to sell Securities pursuant to such amendment or supplement,
and to any other Holder, such number of copies as such Holders may reasonably
request of any supplement or amendment prior to its being used or promptly
following its filing with the Commission; provided,
however, that the Company shall have no obligation to deliver to
Holders of Registrable Securities copies of any amendment consisting
exclusively of an Exchange Act report or other Exchange Act or Securities Act
filing otherwise publicly available through links on the Company’s website or
in the Commission’s EDGAR database.  If
the Shelf Registration Statement, as amended or supplemented from time to time,
ceases to be effective for any reason at any time during the Effective Period
(other than because all Registrable Securities registered thereunder shall have
been sold pursuant thereto or shall have otherwise ceased to be Registrable
Securities), the Company shall use commercially reasonable efforts to obtain
the prompt withdrawal of any order suspending the effectiveness thereof.

(c)           Notwithstanding any other provision
hereof, no Holder of Registrable Securities shall be entitled to include any of
their Registrable Securities in any Shelf Registration Statement pursuant to
this Agreement unless and until such Holder furnishes to the Company the Notice
and Questionnaire and such other information in writing as the Company may
reasonably request in writing for use in connection with the Shelf Registration
Statement or Prospectus included therein.  The Company shall issue one or more press
releases through a reputable national newswire service of its filing of (or
intention to designate an automatic shelf registration statement as) the Shelf
Registration Statement and of the anticipated filing date thereof.   In order to be named as a selling
securityholder in the Prospectus at the time it is first made available for
use, each Holder must furnish the completed Notice and Questionnaire and such
other information that the Company may reasonably request in writing, if any,
to the Company in writing no later than the tenth Business Day prior to the
effective date of the Shelf Registration Statement.

 5
 

(d)           From and after the date the Shelf
Registration Statement is initially effective, the Company shall, as promptly
as is practicable after the date a proper Notice and Questionnaire is
delivered, and in any event within (x) ten (10) Business Days after the date
such Notice and Questionnaire is received by the Company or (y) if a Notice and
Questionnaire is so received during a Deferral Period, the later of the tenth
(10th) Business Day after the date such Notice and Questionnaire is received by
the Company or the fifth (5th) Business Day after the expiration of such
Deferral Period,

(i)            if required by applicable law, file with the Commission a
post-effective amendment to the Shelf Registration Statement or prepare and, if
required by applicable law, file a supplement to the related Prospectus or a
supplement or amendment to any document incorporated therein by reference or
file any other required document so that the Holder delivering such Notice and
Questionnaire is named as a selling security holder in the Shelf Registration
Statement and the related Prospectus in such a manner as to permit such Holder
to deliver such Prospectus to purchasers of the Registrable Securities in
accordance with applicable law and, if the Company shall file a post-effective
amendment to the Shelf Registration Statement and such amendment is not
automatically effective, use commercially reasonable efforts to cause such
post-effective amendment to be declared or to otherwise become effective under
the Securities Act as promptly as is practicable;

(ii)           provide such Holder with as many copies of any documents
filed pursuant to Section 2(d)(i) as such Holder may reasonably request in
connection with the Securities covered by such Holder’s Notice and
Questionnaire; and

(iii)          notify such Holder as promptly as practicable after the
effectiveness under the Securities Act of any post-effective amendment filed
pursuant to Section 2(d)(i);

provided
that if such Notice
and Questionnaire is delivered during a Deferral Period, the Company shall so
inform the Holder delivering such Notice and Questionnaire and shall take the
actions set forth in clauses (i), (ii) and (iii) above upon expiration of the
Deferral Period in accordance with Section 3(b).  Notwithstanding anything contained herein to
the contrary, the Company shall be under no obligation to name any Holder that
is not a Notice Holder as a selling securityholder in any Shelf Registration
Statement or related Prospectus; provided,
however, that any Holder that becomes a Notice Holder pursuant to
the provisions of this Section 2(d) (whether or not such Holder was a Notice
Holder at the time the Shelf Registration Statement was declared or otherwise
become effective) shall be named as a selling securityholder in the Shelf
Registration Statement or related Prospectus in accordance with the
requirements of this Section 2(d).

(e)           If any of the following events (any
such event a “Registration Default”)
shall occur, then additional interest (the “Additional
Interest”) shall become payable by the Company to Holders in respect
of the Notes as follows:

 6
 

(i)            if the Shelf Registration Statement
is not filed with the Commission within 90 days following the Closing Date
(other than a Registration Default relating to a failure to file a Shelf
Registration Statement with respect to the Shares), then commencing on the 91st
day after the Closing Date, Additional Interest shall accrue on the principal
amount of the outstanding Notes at a rate of 0.25% per annum for the first 90
days following such 90th day and at a rate of 0.5% per annum thereafter; or

(ii)           if the Shelf Registration Statement has not become or is not
declared effective by the Commission within 180 days following the Closing Date
(other than a Registration Default relating to a failure to have a Shelf
Registration Statement effective with respect to Shares), then commencing on
the 181st day after the Closing Date, Additional Interest shall accrue on the
principal amount of the outstanding Notes at a rate of 0.25% per annum for the
first 90 days following such 180th day and at a rate of 0.5% per annum
thereafter; or

(iii)          if the Company has failed to perform its obligations set
forth in Section 2(d) hereof within the time periods required therein, then,
commencing on the first day after the date by which the Company was required to
perform such obligations, Additional Interest shall accrue on the principal
amount of the outstanding Notes that are Registrable Securities and for which a
Holder has delivered a Notice and Questionnaire under Section 2(d) with respect
to which the Company has failed to perform its obligations set forth in Section
2(d) hereof, at a rate of 0.25% per annum for the first 90 days and at a rate
of 0.5% per annum thereafter;

(iv)          if the Shelf Registration Statement has become or been
declared effective but such Shelf Registration Statement ceases to be effective
at any time during the Effective Period (other than a Registration Default
relating to a failure to have a Shelf Registration Statement effective with
respect to Shares) or pursuant to Section 3(b) hereof), then, commencing on the
day such Shelf Registration Statement ceases to be effective, Additional
Interest shall accrue on the principal amount of the outstanding Notes at a
rate of 0.25% per annum for the first 90 days following such date on which the
Shelf Registration Statement ceases to be effective and at a rate of 0.5% per
annum thereafter; or

(v)           if the aggregate duration of Deferral Periods in any
period exceeds the number of days permitted in respect of such period pursuant
to Section 3(b) hereof, then, commencing on the day the aggregate duration of
Deferral Periods in any period exceeds the number of days permitted in respect
of such period (and again on the first day of any subsequent Deferral Period
during such period), Additional Interest shall accrue on the principal amount
of the outstanding Notes that are Registrable Securities at a rate of 0.25% per
annum for the first 90 days and at a rate of 0.5% per annum thereafter;

 7
 

provided, however, that the Additional
Interest rate on the Notes shall not exceed in the aggregate 0.5% per annum and
shall not be payable under more than one clause above for any given period of
time, except that if Additional Interest would be payable under more than one
clause above, but at a rate of 0.25% per annum under one clause and at a rate
of 0.5% per annum under the other, then the Additional Interest rate shall be
the higher rate of 0.5% per annum; provided further,
however,that (1) upon the filing
of the Shelf Registration Statement (in the case of clause (i) above), (2) upon
the effectiveness of the Shelf Registration Statement (in the case of clause
(ii) above), (3) upon the performance by the Company of its obligations set
forth in Section 2(d) hereof (in the case of clause (iii) above), (4) upon the
effectiveness of the Shelf Registration Statement which had ceased to remain
effective (in the case of clause (iv) above), (5) upon the termination of the
Deferral Period that caused the limit on the aggregate duration of Deferral
Periods in a period set forth in Section 3(b) to be exceeded (in the case of
clause (v) above) or (6) the earlier of (A) the second anniversary of the
Closing Date or (B) when the Notes are no longer Registrable Securities (in the
case of each of clauses (i) – (v) above), Additional Interest on the Notes as a
result of such clause, as the case may be, shall cease to accrue.

Additional
Interest on the Notes, if any, will be payable in cash on February 1 and August
1 of each year (the “Additional Interest
Payment Date”) to holders of record of outstanding Notes that are
Registrable Securities at the close of business on January 15 or July 15
(whether or not a Business Day), as the case may be, immediately preceding the
relevant interest payment date in the manner and subject to the exceptions
provided for the payment of regular interest on the Notes as set forth in the
Indenture; provided that in the case of an event of
the type described in clause (iii) above, such Additional Interest shall be
paid only to the Holders of Restricted Securities.  Following the cure of all Registration
Defaults requiring the payment of Additional Interest to the Holders of Notes
that are Registrable Securities pursuant to this Section, the accrual of
Additional Interest will cease (without in any way limiting the effect of any
subsequent Registration Default requiring the payment of Additional Interest).

Additional Interest will be computed on the basis of a 360-day year
composed of twelve 30-day months.

The Company shall notify the Trustee immediately upon the happening of
each and every Registration Default.  The
Trustee shall be entitled, on behalf of Holders of Securities, to seek any
available remedy for the enforcement of this Agreement, including for the
payment of any Additional Interest. 
Notwithstanding the foregoing, the parties agree that the sole monetary
damages payable for a violation of the terms of this Agreement with respect to
which additional monetary amounts are expressly provided shall be as set forth
in this Section 2(e). Nothing shall preclude a Notice Holder or Holder of
Registrable Securities from pursuing or obtaining specific performance or other
equitable relief with respect to this Agreement.

 8
 

3.                  Registration Procedures.

The
following provisions shall apply to the Shelf Registration Statement filed
pursuant to Section 2:

(a)           The Company shall:

(i)            before filing any Shelf Registration Statement or
Prospectus or any amendments or supplements thereto with the Commission,
furnish to the Initial Purchasers copies of all such documents proposed to be
filed and use commercially reasonable efforts to reflect in each such document
when so filed with the Commission such comments as the Initial Purchasers
reasonably shall propose within three (3) Business Days of the delivery of such
copies to the Initial Purchasers;

(ii)           use commercially reasonable efforts to prepare and file
with the Commission such amendments and post-effective amendments to the Shelf
Registration Statement and file with the Commission any other required document
as may be necessary to keep such Shelf Registration Statement continuously effective
until the expiration of the Effective Period; cause the related Prospectus to
be supplemented by any required prospectus supplement, and as so supplemented
to be filed pursuant to Rule 424 (or any similar provisions then in force)
under the Securities Act; and comply with the provisions of the Securities Act
applicable to it with respect to the disposition of all Securities covered by
such Shelf Registration Statement during the Effective Period in accordance
with the intended methods of disposition by the sellers thereof set forth in
such Shelf Registration Statement as so amended or such Prospectus as so
supplemented;

(iii)          as promptly as reasonably practicable, notify the Notice
Holders of Registrable Securities (A) when such Shelf Registration Statement or
the Prospectus included therein or any amendment or supplement to the
Prospectus or post-effective amendment has been filed with the Commission, and,
with respect to such Shelf Registration Statement or any post-effective
amendment, when the same is declared or has become effective (provided, however, that
the Company shall have no obligation to deliver to Holders of Registrable
Securities copies of any amendment consisting exclusively of an Exchange Act
report or other Securities Act filing otherwise publicly available through the
links on the Company’s website or in the Commission’s EDGAR database), (B) of any request, following the effectiveness
of the Shelf Registration Statement, by the Commission or any other Federal or
state governmental authority for amendments or supplements to the Shelf
Registration Statement or related Prospectus, (C) of the issuance by the
Commission of any stop order suspending the effectiveness of such Shelf
Registration Statement or the initiation or written threat of anyproceedings
for that purpose,
(D) of the receipt by the Company of any notification with
respect to the suspension of the qualification of the Registrable Securities
for sale in any jurisdiction or the initiation or written threat of any

 9
 

proceeding for
such purpose, (E) of the occurrence of (but not the nature of or details
concerning) any event or the existence of any fact (a “Material Event”) as a result of which any
Shelf Registration Statement shall contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein not misleading, or any Prospectus
shall contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not
misleading (provided, however, that no notice by the
Company shall be required pursuant to this clause (E) in the event that the
Company either promptly files a prospectus supplement to update the Prospectus
or a Form 8-K or other appropriate Exchange Act report that is incorporated by
reference into the Shelf Registration Statement, which, in either case,
contains the requisite information with respect to such Material Event that
results in such Shelf Registration Statement or Prospectus, as the case may be,
no longer containing any untrue statement of material fact or omitting to state
a material fact necessary to make the statements contained therein, in the case
of the Prospectus, in light of the circumstances under which they were made,
not misleading), (F) of the determination by the Company that a post-effective
amendment to the Shelf Registration Statement (other than for the purpose of naming
a Notice Holder as a selling security holder therein) will be filed with the
Commission, which notice may, at the discretion of the Company (or as required
pursuant to Section 3(b)), state that it constitutes a Deferral Notice, in
which event the provisions of Section 3(b) shall apply or (G) at any
time when a Prospectus is required (or but for the exemption contained in Rule
172 would be required) to be delivered under the Securities Act, that the Shelf
Registration Statement, Prospectus, Prospectus amendment, supplement or
post-effective amendment does not conform in all material respects to the
applicable requirements of the Securities Act and the Trust Indenture Act and
the rules and regulations of the Commission thereunder;

(iv)          prior to any public offering of the Registrable Securities
pursuant to the Shelf Registration Statement, use commercially reasonable
efforts to register or qualify, or cooperate with the Notice Holders of
Securities included therein and their respective counsel in connection with the
registration or qualification of such Securities for offer and sale under the
securities or blue sky laws of such jurisdictions in the United States as any
such Notice Holders reasonably requests in writing and do any and all other
acts or things reasonably necessary or advisable to enable the offer and sale
in such jurisdictions of the Securities covered by the Shelf Registration
Statement; prior to any public offering of the Registrable Securities pursuant
to the Shelf Registration Statement, use commercially reasonable efforts to
keep each such registration or qualification (or exemption therefrom) effective
during the Effective Period in connection with such Notice Holder’s offer and
sale of Registrable Securities pursuant to such registration or qualification
(or exemption therefrom) and do any and all other acts or things reasonably
necessary or advisable to enable the disposition in such

 10
 

jurisdictions of such
Registrable Securities in the manner set forth in the Shelf Registration
Statement and the related Prospectus; provided that
the Company will not be required to qualify generally to do business in any
jurisdiction where it is not then so qualified or to take any action which
would subject it to general service of process or to taxation in any such
jurisdiction where it is not then so subject;

(v)           use commercially reasonable efforts to prevent the
issuance of, and if issued, to obtain the withdrawal of any order suspending
the effectiveness of the Shelf Registration Statement or any post-effective
amendment thereto, and to lift any suspension of the qualification of any of
the Registrable Securities for sale in any jurisdiction in which they have been
qualified for sale, in each case at the earliest practicable date;

(vi)          upon reasonable notice, for a reasonable period prior to
the filing of the Shelf Registration Statement, and throughout the Effective
Period, (i) make reasonably available for inspection by a representative
of, and Special Counsel acting for, Majority Holders of the Securities being
sold and any underwriter (and its counsel) participating in any disposition of
Securities pursuant to such Shelf Registration Statement (collectively, the “Shelf Inspectors”), all relevant financial
and other records and pertinent corporate documents of the Company and its
subsidiaries and (ii) use commercially reasonable efforts to have its
officers, directors, employees, accountants and counsel supply all relevant
information reasonably requested by such representative, Special Counsel or any
such underwriter in connection with such Shelf Registration Statement, in each
case as is reasonable and customary for similar “due diligence” examinations; provided, however, that
with respect to any Special Counsel engaged by the Majority Holders, the foregoing
inspection and information gathering shall be coordinated by one counsel
designated by the Majority Holders and provided
further that as a condition to the Company’s obligations under this
clause (vi), the Shelf Inspectors shall expressly agree to maintain disclosed
information in confidence to the extent the Company’s disclosure of such
information to the Shelf Inspectors would otherwise violate Regulation FD of
the Commission;

(vii)         if requested by Majority Holders of the Securities being
sold in an underwriting, its Special Counsel or the managing underwriters (if
any) in connection with such Shelf Registration Statement, use commercially
reasonable efforts to cause (i) its counsel to deliver an opinion relating to
the Shelf Registration Statement and the Securities in a customary form, (ii)
its officers to execute and deliver all customary documents and certificates
requested by the Majority Holders of the Securities being sold, their Special
Counsel or the managing underwriters (if any) and (iii) its independent
registered public accounting firm to provide a comfort letter or letters
relating to the Shelf Registration Statement in a reasonable and customary
form, subject to receipt of appropriate documentation as contemplated, and only
if permitted, by Statement of Auditing Standards No. 72 or any successor statement
thereto, covering matters

 11
 

of the type customarily
covered in comfort letters in connection with secondary underwritten offerings;

(viii)        if reasonably requested by the Initial
Purchasers or any Notice Holder as a result of the “due diligence” examinations
referred to in Section 3(a)(vi) above, promptly incorporate in a prospectus
supplement or post-effective amendment to the Shelf Registration Statement such
information as the Initial Purchasers or such Notice Holder shall, on the basis
of a written opinion of nationally recognized counsel experienced in such
matters, determine to be required to be included therein by applicable law and
make any required filings of such prospectus supplement or such post-effective
amendment; provided, that the Company shall not be
required to take any actions under this Section 3(a)(viii) that are not, in the
reasonable opinion of counsel for the Company, in compliance with applicable
law;

(ix)           as promptly as practicable furnish to each Notice Holder
and the Initial Purchasers, upon their request and without charge, at least one
(1) conformed copy of the Shelf Registration Statement and any amendments
thereto, including financial statements but excluding schedules, all documents
incorporated or deemed to be incorporated therein by reference and all
exhibits; provided, however, that the Company
shall have no obligation to deliver to Notice Holders or the Initial Purchasers
a copy of any amendment consisting exclusively of an Exchange Act report or
other Exchange Act filing otherwise publicly available on the Company’s website
or in the Commission’s EDGAR database;

(x)            during the Effective Period, deliver to each Notice
Holder in connection with any sale of Registrable Securities pursuant to the
Shelf Registration Statement, upon their request and without charge, as many
copies of the Prospectus relating to such Registrable Securities (including
each preliminary prospectus) and any amendment or supplement thereto as such
Notice Holder may reasonably request; and the Company hereby consents (except
during such periods that a Deferral Notice is outstanding and has not been
revoked) to the use of such Prospectus or each amendment or supplement thereto
by each Notice Holder in connection with any offering and sale of the
Registrable Securities covered by such Prospectus or any amendment or
supplement thereto in the manner set forth therein and subject to applicable
law;

(xi)           cooperate with the Notice Holders to facilitate the timely
preparation and delivery of certificates representing Securities to be sold
pursuant to the Shelf Registration Statement free of any restrictive legends
and in such denominations as permitted by the Indenture and registered in such
names as the Holders thereof may request in writing at least three (3) Business
Days prior to sales of Securities pursuant to such Shelf Registration
Statement; and

(xii)          not use, authorize the use of, refer to, or participate in
the planning for use of, any “free writing prospectus”, as defined in Rule 405
under the

 12
 

Securities Act, in
connection with the offering or sale of the Securities, without the consent of
Holders of Registrable Securities who are seeking to sell Securities pursuant
to the Shelf Registration Statement or relevant supplement or amendment
thereto, which consent shall not be unreasonably withheld.

(b)           Upon (A) the issuance by the
Commission of a stop order suspending the effectiveness of the Shelf
Registration Statement or the initiation of proceedings with respect to the
Shelf Registration Statement under Section 8(d) or 8(e) of the Securities Act,
(B) the occurrence of any event or the existence of any Material Event as a
result of which the Shelf Registration Statement shall contain any untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading, or
any Prospectus shall contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading, or (C) the occurrence or existence of any corporate
development that, in the discretion of the Company, makes it appropriate to
suspend the availability of the Shelf Registration Statement and the related
Prospectus, the Company will (i) in the case of clause (B) above, subject to
the second sentence of this provision, as promptly as practicable prepare and
file an amendment to such Shelf Registration Statement or a supplement to the
related Prospectus or any document incorporated therein by reference or file
any other required document that would be incorporated by reference into such
Shelf Registration Statement and Prospectus so that such Shelf Registration
Statement does not contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the
statements therein not misleading, and such Prospectus does not contain any
untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading, as thereafter
delivered or made available to the purchasers of the Registrable Securities
being sold thereunder, and, in the case of a post-effective amendment to the
Shelf Registration Statement, subject to the second sentence of this provision,
use commercially reasonable efforts to cause it to be declared effective or
otherwise become effective as promptly as practicable and (ii) give notice to
the Notice Holders that the availability of the Shelf Registration Statement is
suspended (a “Deferral Notice”).  The Company will use commercially reasonable
efforts to ensure that the use of the Prospectus may be resumed (x) in the case
of clause (A) above, as promptly as practicable, (y) in the case of clause (B)
above, as soon as, in the sole judgment of the Company, public disclosure of
such Material Event would not be prejudicial to or contrary to the interests of
the Company or, if necessary to avoid unreasonable burden or expense, as soon
as practicable thereafter and (z) in the case of clause (C) above, as soon as,
in the discretion of the Company, such suspension is no longer appropriate; provided that the period during which the
availability of the Shelf Registration Statement and any Prospectus is
suspended (the “Deferral Period”),
without the Company incurring any obligation to pay Additional Interest
pursuant to Section 2(e), shall not exceed one hundred and twenty (120) days in
the aggregate in any twelve (12) month period. 
The

 13
 

Company need not specify the
nature of the event giving rise to a Deferral Notice in any notice to holders
of the Registrable Securities of the existing of a Deferral Notice.

(c)           Each Holder of Registrable Securities
agrees that upon receipt of any Deferral Notice from the Company, such Holder
shall forthwith discontinue (and cause any placement or sales agent or
underwriters acting on their behalf to discontinue) the disposition of
Registrable Securities pursuant to the Shelf Registration Statement until such
Holder (i) shall have received copies of such amended or supplemented
Prospectus (including copies of any additional or supplemental filings that are
incorporated or deemed incorporated by reference in such Prospectus) required
under clause (i) of Section 3(b) and, if so directed by the Company, such
Holder shall deliver to the Company (at the Company’s expense) all copies,
other than permanent file copies, then in such Holder’s possession of the
Prospectus covering such Registrable Securities at the time of receipt of such
notice and (ii) shall have received notice from the Company that the
disposition of Registrable Securities pursuant to the Shelf Registration
Statement may continue.

(d)           The Company may require each Holder of Registrable
Securities as to which any registration pursuant to Section 2(a) is being effected
to furnish to the Company such information regarding such Holder and such
Holder’s intended method of distribution of such Registrable Securities as the
Company may from time to time reasonably request in writing, but only to the
extent that such information is required in order to comply with the Securities
Act.

(e)           The Company shall comply with all
applicable rules and regulations of the Commission and make generally available
to its securityholders earning statements (which need not be audited) satisfying
the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder
(or any similar rule promulgated under the Securities Act) no later than 45
days after the end of any 12-month period (or 90 days after the end of any
12-month period if such period is a fiscal year) commencing on the first day of
the first fiscal quarter of the Company commencing after the effective date of
the Shelf Registration Statement, which statements shall cover said 12-month
periods.

(f)            The Company shall provide a CUSIP
number for all Registrable Securities covered by the Shelf Registration
Statement not later than the effective date of such Shelf Registration
Statement and provide the Trustee and the transfer agent for the Shares with
printed certificates for the Registrable Securities that are in a form eligible
for deposit with The Depository Trust Company.

(g)           The Company shall use commercially
reasonable efforts to provide such information as is required for any filings
required to be made with the NASD.

(h)           Until the expiration
of the Effective Period, the Company will not, and will not permit any of its
Affiliates, to the extent the Company controls such Affiliates, to, resell any
of the Securities that have been reacquired by any of them except pursuant to
an effective registration statement under the Securities Act.

 14

(i)            The Company shall use commercially
reasonable efforts to cause the Indenture to be qualified under the Trust
Indenture Act in a timely manner and shall enter into any necessary
supplemental indentures in connection therewith.

(j)            The Company shall enter into such
customary agreements and take such other reasonable and lawful actions in
connection therewith (including those requested by the Majority Holders of the
Registrable Securities being sold) in order to expedite or facilitate
disposition of such Registrable Securities.

4.                     Holders’ Obligations.

(a)           Each Holder agrees, by acquisition of
the Registrable Securities, that no Holder of Registrable Securities shall be
entitled to sell any of such Registrable Securities pursuant to the Shelf
Registration Statement or to receive a Prospectus relating thereto, unless such
Holder has furnished the Company with a Notice and Questionnaire as required
pursuant to Section 2(c) hereof (including the information required to be
included in such Notice and Questionnaire) and the information set forth in the
next sentence.  Each Notice Holder agrees
to notify the Company as promptly as practicable of any inaccuracy or change in
information previously furnished by such Notice Holder to the Company or of the
occurrence of any event in either case as a result of which any Prospectus
relating to such registration contains or would contain an untrue statement of
a material fact regarding such Notice Holder or such Notice Holder’s intended
method of disposition of such Registrable Securities or omits to state any
material fact regarding such Notice Holder or such Notice Holder’s intended
method of disposition of such Registrable Securities required to be stated
therein or necessary to make the statements therein not misleading, and
promptly to furnish to the Company (i) any additional information required to
correct and update any previously furnished information or required so that
such Prospectus shall not contain, with respect to such Notice Holder or the
disposition of such Registrable Securities, an untrue statement of a material
fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading and (ii) any other information regarding such Notice
Holder and the distribution of such Registrable Securities as may be reasonably
required to be disclosed in the Shelf Registration Statement under applicable
law.  Each Holder further agrees not to
sell any Registrable Securities pursuant to the Shelf Registration Statement
without delivering, causing to be delivered, or, if permitted by applicable
law, making available, a Prospectus to the purchaser thereof and, following
termination of the Effective Period, to notify the Company, within ten (10)
Business Days of a request by the Company, of the amount of Registrable
Securities sold pursuant to the Shelf Registration Statement and, in the
absence of a response, the Company may assume that all of the Holder’s
Registrable Securities were so sold in compliance with applicable law and this
Agreement.

(b)           Any sale of any Registrable
Securities by any Holder shall constitute a representation and warranty by such
Holder that the information relating to such Holder and its plan of
distribution is as set forth in the Prospectus delivered by such Holder in
connection with such disposition, that such Prospectus does not as of the time
of such

 15
 

sale contain any untrue
statement of a material fact relating to or provided by such Holder or its plan
of distribution and that such Prospectus does not as of the time of such sale
omit to state any material fact relating to or provided by such Holder or its
plan of distribution necessary to make the statements in such Prospectus, in
the light of the circumstances under which they were made, not misleading. Each
Holder further agrees that such Holder will not make any offer relating to the
Registrable Securities that would constitute an “issuer free writing
prospectus” (as defined in Rule 433 under the Securities Act) or that would
otherwise constitute a “free writing prospectus” (as defined in Rule 405 under
the Securities Act) required to be filed by the Company with the Commission or
retained by the Company under Rule 433 of the Securities Act, unless it has
obtained the prior written consent of the Company.

5.                     Registration Expenses.

The Company agrees to bear and to pay or cause to be paid promptly
after request being made therefor all fees and expenses incident to the
Company’s performance of or compliance with this Agreement, including, but not
limited to, (a) all Commission and any NASD registration and filing fees and
expenses, (b) all fees and expenses in connection
with the qualification of the Securities for offering and sale under the State
securities and Blue Sky laws referred to in Section 3(a)(v) hereof, including
reasonable fees and disbursements of one counsel for the placement agent or
underwriters, if any, in connection with such qualifications, (c) all expenses relating to the preparation, printing,
distribution and reproduction of the Shelf Registration Statement, the related
Prospectus, each amendment or supplement to each of the foregoing, the
certificates representing the Securities and all other documents relating
hereto, (d) fees and expenses of the Trustee under
the Indenture, any escrow agent or custodian, and of the registrar and transfer
agent for the Shares, (e) fees, disbursements and
expenses of counsel and independent certified public accountants of the Company
(including the expenses of any opinions or “cold comfort” letters required by
or incident to such performance and compliance) and (f)
reasonable fees, disbursements and expenses of one counsel for all Holders of
Registrable Securities retained in connection with the Shelf Registration
Statement, as selected by the Company (unless reasonably objected to by the
Majority Holders of the Registrable Securities being registered, in which case
the Majority Holders shall select such counsel for the Holders) (“Special Counsel”), and fees, expenses and disbursements of
any other Persons, including special experts, retained by the Company in
connection with such registration (collectively, the “Registration
Expenses”).  To the extent
that any Registration Expenses are incurred, assumed or paid by any Holder of
Registrable Securities or any underwriter or placement agent therefor, the
Company shall reimburse such Person for the full amount of the Registration
Expenses so incurred, assumed or paid promptly after receipt of a documented
request therefor.  Notwithstanding the
foregoing, the Holders of the Registrable Securities being registered shall pay
all underwriting discounts and commissions and placement agent fees and
commissions attributable to the sale of such Registrable Securities and the
fees and disbursements of any counsel or other advisors or experts retained by
such Holders (severally or jointly), other than the counsel and experts
specifically referred to above.

 16
 

6.                     Indemnification.

(a)           The
Company shall indemnify and hold harmless each Notice Holder (including, without
limitation, any Initial Purchaser), its Affiliates, their respective officers,
directors, employees, representatives and agents, and each person, if any, who
controls such Notice Holder within the meaning of the Securities Act or the
Exchange Act (collectively referred to for purposes of this Section 6 and
Section 7 as an “Indemnified Holder”)
from and against any loss, claim, damage or liability, joint or several, or any
action in respect thereof (including, without limitation, any loss, claim, damage,
liability or action relating to purchases and sales of Securities), to which
that Indemnified Holder may become subject, whether commenced or threatened,
under the Securities Act, the Exchange Act, any other federal or state
statutory law or regulation, at common law or otherwise, insofar as such loss,
claim, damage, liability or action arises out of, or is based upon, (i) any
untrue statement or alleged untrue statement of a material fact contained in
any such Shelf Registration Statement or any Prospectus forming part thereof,
or (ii) the omission or alleged omission to state therein a material fact
required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading,
and shall reimburse each Indemnified Holder promptly upon demand for any legal
or other expenses reasonably incurred by that Indemnified Holder in connection
with investigating or defending or preparing to defend against or appearing as
a third party witness in connection with any such loss, claim, damage,
liability or action as such expenses are incurred; provided, however, that the Company shall not be liable in
any such case to the extent that any such loss, claim, damage, liability or
action arises out of, or is based upon, an untrue statement or alleged untrue
statement in or omission or alleged omission from any of such documents in
reliance upon and in conformity with any information provided by such
Indemnified Holder in its Notice and Questionnaire or otherwise provided by
such Indemnified Holder in writing to the Company expressly for use
therein.  This indemnity agreement shall
be in addition to any liability that the Company may otherwise have.

(b)           Each Notice Holder shall indemnify and hold
harmless the Company, its Affiliates, their respective officers, directors,
employees, representatives and agents, and each person, if any, who controls
the Company within the meaning of the Securities Act or the Exchange Act
(collectively referred to for purposes of this Section 6(b) and Section 7 as
the Company), from and against any loss, claim, damage or liability, joint or
several, or any action in respect thereof, to which the Company may become
subject, whether commenced or threatened, under the Securities Act, the
Exchange Act, any other federal or state statutory law or regulation, at common
law or otherwise, insofar as such loss, claim, damage, liability or action
arises out of, or is based upon, (i) any untrue statement or alleged untrue
statement of a material fact contained in any such Shelf Registration Statement
or any Prospectus forming part thereof, or (ii) the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, but in each case only
to the extent that the untrue statement or alleged untrue statement or omission
or alleged omission was made in reliance upon and in conformity with any
information furnished to the Company by the Notice Holder in its Notice and

 17
 

Questionnaire or otherwise
in writing by such Notice Holder expressly for use therein, and shall reimburse
the Company for any legal or other expenses reasonably incurred by the Company
in connection with investigating or defending or preparing to defend against or
appearing as a third party witness in connection with any such loss, claim,
damage, liability or action as such expenses are incurred; provided, however, that no such Notice
Holder shall be liable for any indemnity claims hereunder in excess of the
amount of net proceeds received by such Notice Holder from the sale of
Securities pursuant to such Shelf Registration Statement.  This indemnity agreement will be in addition
to any liability which any such Notice Holder may otherwise have.

(c)           If
any suit, action, proceeding (including any governmental or regulatory
investigation), claim or demand shall be brought or asserted against any person
in respect of which indemnification may be sought pursuant to either paragraph
6(a) or 6(b) above, the indemnified party shall promptly notify the person
against whom such indemnification may be sought in writing of such suit,
action, proceeding, claim or demand; provided, however, that the failure to notify the indemnifying party shall not relieve
it from any liability that it may have under this Section 6 except to the
extent that it has been materially prejudiced (through the forfeiture of
substantive rights or defenses) by such failure; and provided, further, that the failure to notify the
indemnifying party shall not relieve it from any liability that it may have to
an indemnified party otherwise than under this Section 6.  If any such proceeding shall be brought or asserted
against an indemnified party and it shall have notified the indemnifying party
thereof, the indemnifying party shall retain counsel reasonably
satisfactory to the indemnified party (who shall not, without the consent of
the indemnified party, be counsel to
the indemnifying party) to represent the indemnified party and any others entitled to indemnification pursuant to
this Section 6 that the indemnifying party
may designate in such proceeding and shall pay the fees and expenses of such
proceeding and shall pay the fees and expenses of such counsel related to such
proceeding, as incurred.  In any such
proceeding, any indemnified party
shall have the right to retain its own counsel, but the fees and expenses of
such counsel shall be at the expense of such indemnified party unless (i) the indemnifying party and the indemnified party shall have mutually agreed to the
contrary; (ii) the indemnifying party
has failed within a reasonable time to retain counsel reasonably satisfactory
to the indemnified party; (iii) the indemnified party shall have reasonably concluded that there may be legal
defenses available to it that are different from or in addition to those
available to the indemnifying party;
or (iv) the named parties in any such proceeding (including any impleaded
parties) include both the indemnifying party
and the indemnified party and
representation of both parties by the same counsel would be inappropriate due
to actual or potential differing interests between them.  It is understood and agreed that the
indemnifying party shall not, in
connection with any proceeding or related proceeding in the same jurisdiction,
be liable for the reasonable fees and expenses of more than one separate firm
(in addition to any local counsel) for all indemnified parties, and that all
such fees and expenses shall be reimbursed as they are incurred.  Any such separate firm for any Initial
Purchaser, its affiliates, directors and officers and any control persons of
such Initial Purchaser shall be designated in writing by J.P. Morgan Securities
Inc. and any such separate firm for the Company, its directors and officers and

 18
 

any control persons of the
Company shall be designated in writing by the Company.  The indemnifying party shall not be liable
for any settlement of any proceeding effected without its written consent, but
if settled with such consent or if there be a final judgment for the plaintiff,
the indemnifying party agrees to indemnify each indemnified party from and
against any loss or liability by reason of such settlement or judgment.  Notwithstanding the foregoing sentence, if at
any time an indemnified party shall have requested that an indemnifying party
reimburse the indemnified party for fees and expenses of counsel as contemplated
by this paragraph, the indemnifying party shall be liable for any settlement of
any proceeding effected without its written consent if (i) such settlement is
entered into more than 60 days after receipt by the indemnifying party of such
request and more than 30 days after notice of such settlement is received by
the indemnifying party and (ii) the indemnifying party shall not have
reimbursed the indemnified party in accordance with such request prior to the
date of such settlement.  No indemnifying
party shall, without the prior written consent of the indemnified party, effect
any settlement of any pending or threatened proceeding in respect of which any
indemnified party is or could have been a party and indemnification could have
been sought hereunder by such indemnified party, unless such settlement (x)
includes an unconditional release of such indemnified party, in form and
substance reasonably satisfactory to such indemnified party, from all liability
on claims that are the subject matter of such proceeding and (y) does not
include any statement as to or any admission of fault, culpability or a failure
to act by or on behalf of any indemnified party.

(d)           The provisions of this Section 6 and
Section 7 shall remain in full force and effect, regardless of any
investigation made by or on behalf of any Notice Holder, the Company, or any of
the indemnified Persons referred to in this Section 6 and Section 7, and shall
survive the sale by a Notice Holder of Securities covered by the Shelf
Registration Statement.

7.                     Contribution.

If the indemnification provided for in Section 6 is unavailable or
insufficient to hold harmless an indemnified party under Section 6(a) or 6(b),
then each indemnifying party shall, in lieu of indemnifying such indemnified
party, contribute to the amount paid or payable by such indemnified party as a
result of such loss, claim, damage or liability, or action in respect thereof,
(i) in such proportion as shall be appropriate to reflect the relative
benefits received by the Company from the offering and sale of the Notes, on
the one hand, and a Holder with respect to the sale by such Holder of
Securities, on the other, or (ii) if the allocation provided by clause (i)
above is not permitted by applicable law, in such proportion as is appropriate
to reflect not only the relative benefits referred to in clause (i) above but
also the relative fault of the Company on the one hand and such Holder on the
other with respect to the statements or omissions that resulted in such loss,
claim, damage or liability, or action in respect thereof, as well as any other
relevant equitable considerations.  The
relative benefits received by the Company on the one hand and a Holder on the
other with respect to such offering and such sale shall be deemed to be in the
same proportion as the total net proceeds from the offering of the Notes
(before deducting expenses) received by or on behalf of the Company, on the one
hand, and the total net proceeds (before deducting expenses) received by such
Holder upon a resale of the Securities, on the

 19
 

other,
bear to the total gross proceeds from the sale of all Securities pursuant to
the Shelf Registration Statement in the offering of the Securities from which
the contribution claim arises.  The
relative fault shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to the Company or information
supplied by the Company on the one hand or to any information contained in the
relevant Notice and Questionnaire supplied by such Holder on the other, the
intent of the parties and their relative knowledge, access to information and
opportunity to correct or prevent such untrue statement or omission.  The Notice Holders’ respective obligations to
contribute pursuant to this Section 7 are several in proportion to the
respective number of Registrable Securities they have sold pursuant to the
Shelf Registration Statement and not joint. 
The parties hereto agree that it would not be just and equitable if
contributions pursuant to this Section 7 were to be determined by pro rata allocation or by any other method of allocation
that does not take into account the equitable considerations referred to
herein.  The amount paid or payable by an
indemnified party as a result of the loss, claim, damage or liability, or
action in respect thereof, referred to above in this Section 7 shall be deemed
to include, for purposes of this Section 7, any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating
or defending or preparing to defend any such action or claim.  Notwithstanding the provisions of this
Section 7, an indemnifying party that is a Holder of Securities shall not be
required to contribute any amount in excess of the amount by which the total
price at which the Securities sold by such indemnifying party to any purchaser
exceeds the amount of any damages which such indemnifying party has otherwise
paid or become liable to pay by reason of any untrue or alleged untrue
statement or omission or alleged omission. 
No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation.

8.                     Information Requirements.

The Company covenants that, if at any time before the end of the
Effective Period the Company is not subject to the reporting requirements of
the Exchange Act, it will cooperate with any Holder and take such further
action as any Holder may reasonably request in writing (including, without
limitation, making such representations as any such Holder may reasonably
request), all to the extent required from time to time to enable such Holder to
sell Registrable Securities without registration under the Securities Act
within the limitation of the exemptions provided by Rule 144 and Rule 144A and
customarily taken in connection with sales pursuant to such exemptions.  Upon the written request of any Holder, the
Company shall deliver to such Holder a written statement as to whether it has
complied with such filing requirements, unless such a statement has been
included in the Company’s most recent report filed pursuant to Section 13 or
Section 15(d) of Exchange Act.  Notwithstanding
the foregoing, nothing in this Section 8 shall be deemed to require the Company
to register any of its securities under any section of the Exchange Act.

9.                     Miscellaneous.

(a)           Amendments and
Waivers.  The provisions of this
Agreement may not be amended, modified or supplemented, and waivers or consents
to departures from the provisions

 20
 

hereof
may not be given, unless the Company has obtained the written consent of the
Majority Holders.  Notwithstanding the
foregoing, a waiver or consent to depart from the provisions hereof with
respect to a matter that relates exclusively to the rights of Holders whose
Securities are being sold pursuant to the Shelf Registration Statement and that
does not directly or indirectly affect the rights of other Holders may be given
by Holders of a majority in aggregate amount of the Securities being sold by
such Holders pursuant to the Shelf Registration Statement.  Notwithstanding the foregoing sentence, (i)
this Agreement may be amended by written agreement signed by the Company and
the Initial Purchasers, without the consent of the Holders of Registrable
Securities, to cure any ambiguity or to correct or supplement any provision
contained herein that may be defective or inconsistent with any other provision
contained herein, or to make such other provisions in regard to matters or
questions arising under this Agreement that shall not adversely affect the
interests of the Holders of Registrable Securities.  Each Holder of Registrable Securities
outstanding at the time of any such amendment, modification, supplement, waiver
or consent or thereafter shall be bound by any such amendment, modification,
supplement, waiver or consent effected pursuant to this Section 8(a), whether
or not any notice, writing or marking indicating such amendment, modification,
supplement, waiver or consent appears on the Registrable Securities or is
delivered to such Holder.

(b)           Notices.  All notices and other communications provided
for or permitted hereunder shall be made in writing by hand-delivery,
first-class mail, telecopier or air courier guaranteeing next-day delivery:

(1)           If to the Company, initially at the address set forth in
the Purchase Agreement;

(2)           If to the Initial Purchasers, initially at the address set
forth in the Purchase Agreement; and

(3)           If to a Holder, to the address of such Holder set forth in
the security register, the Notice and Questionnaire or other records of the
Company.

All such notices and communications shall be deemed to
have been duly given: when delivered by hand, if personally delivered; one (1)
Business Day after being delivered to a next-day air courier; five (5) Business
Days after being deposited in the mail, if being delivered by first-class mail;
and when receipt is acknowledged by the recipient’s telecopier machine, if sent
by telecopier.

(c)           Successors
and Assigns.  This Agreement shall be
binding upon the Company and each of its successors and assigns.  Any person who purchases any Registrable
Securities from the Initial Purchasers shall be deemed, for purposes of this
Agreement, to be an assignee of the Initial Purchasers.  This Agreement shall inure to the benefit of
and be binding upon the successors and assigns of each of the parties and shall
inure to the benefit of and be binding upon each Holder of any Registrable
Securities, provided that nothing herein shall be
deemed to permit any assignment, transfer or other disposition of Registrable

 21
 

Securities in violation of the terms of the
Indenture.  If any transferee of any
Holder shall acquire Registrable Securities, in any manner, whether by
operation of law or otherwise, such Registrable Securities shall be held
subject to all of the terms of this Agreement, and by taking and holding such
Registrable Securities, such person shall be conclusively deemed to have agreed
to be bound by and to perform all of the terms and provisions of this Agreement
and such person shall be entitled to receive the benefits hereof.

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

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

(f)            Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of New York.

(g)           Remedies.  In the event of a breach by the Company or by
any Holder of any of their respective obligations under this Agreement, each
Holder or the Company, as the case may be, in addition to being entitled to
exercise all rights granted by law, including recovery of damages (other than
the recovery of damages for a breach by the Company of its obligations
hereunder for which Additional Interest has been paid pursuant to Section 2
hereof), will be entitled to specific performance of its rights under this
Agreement.  The Company and each Holder
agree that monetary damages would not be adequate compensation for any loss
incurred by reason of a breach by it of any of the provisions of this Agreement
and hereby further agree that, in the event of any action for specific
performance in respect of such breach, it shall waive the defense that a remedy
at law would be adequate.

(h)           No Inconsistent
Agreements.  The Company represents,
warrants and agrees that (i) it has not entered into and shall not on or after
the date of this Agreement enter into any agreement that is inconsistent with
the rights granted to the Holders in this Agreement or otherwise conflicts with
the provisions hereof and (ii) without limiting the generality of the
foregoing, without the written consent of the Majority Holders, it shall not
grant to any Person the right to request the Company to register any securities
of the Company under the Securities Act unless the rights so granted are not in
conflict or inconsistent with the provisions of this Agreement.

(i)            No Piggyback on
Registrations.  Neither the Company
nor any of its security holders (other than the Holders of Restricted
Securities in such capacity) shall have the right to include any securities of
the Company in any Shelf Registration Statement other than Registrable
Securities.

(j)            Severability.  The remedies provided herein are cumulative
and not exclusive of any remedies provided by law.  If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction to
be invalid, illegal, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions set forth herein

 22
 

shall
remain in full force and effect and shall in no way be affected, impaired or
invalidated, and the parties hereto shall use their commercially reasonable
efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision,
covenant or restriction.  It is hereby
stipulated and declared to be the intention of the parties that they would have
executed the remaining terms, provisions, covenants and restrictions without
including any term, provision, covenant or restriction that may be hereafter
declared invalid, illegal, void or unenforceable.

(k)           Survival.  The
respective indemnities, agreements, representations, warranties and each other
provision set forth in this Agreement or made pursuant hereto shall remain in
full force and effect regardless of any investigation (or statement as to the
results thereof) made by or on behalf of any Holder of Registrable Securities,
any director, officer or partner of such Holder, any agent or underwriter or
any director, officer or partner thereof, or any controlling person of any of the
foregoing, and shall survive delivery of and payment for the Registrable
Securities pursuant to the Purchase Agreement and the transfer and registration
of Registrable Securities by such Holder.

(l)            Securities Held
by the Company, etc.  Whenever the
consent or approval of Holders of a specified percentage of Securities is
required hereunder, Securities held by the Company or its Affiliates (other
than subsequent Holders of Securities if such subsequent Holders are deemed to
be Affiliates solely by reason of their holdings of such Securities) shall not
be counted in determining whether such consent or approval was given by the
Holders of such required percentage.

(m)          Termination.  This Agreement and the obligations of
the parties hereunder shall terminate upon the end of the Effective Period,
except for any liabilities or obligations under Sections 4, 5, 6 and 7 hereof
and the obligations to make payments of and provide for Additional Interest
under Section 2(e) hereof to the extent such damages accrue prior to the end of
the Effective Period, each of which shall remain in effect in accordance with
its terms.

 23

If the foregoing is in accordance with your understanding of our
agreement, kindly sign and return to us a counterpart hereof, whereupon this
instrument will become a binding agreement between the Company and the Initial
Purchasers in accordance with its terms.

 

	
  

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  HEADWATERS INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

Accepted:  January 22, 2007

By:  J.P. MORGAN SECURITIES INC.

  As Representative of the

  several Initial Purchasers listed

  in Schedule 1 to the Purchase
  Agreement

	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

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