Document:

Exhibit
4.3

 

Execution Copy

 

EVERGREEN RESOURCES, INC.

 

4.75% SENIOR CONVERTIBLE NOTES 

DUE 2021

 

 

INDENTURE

Dated as
of December 18, 2001

 

 

FIRST
UNION NATIONAL BANK,

as
Trustee

 

 

CROSS-REFERENCE
TABLE*

	
  TIA Section

  	
  Indenture
  Section

  
	
  Section 

  	
  310(a)(1)

  	
  9.10

  
	
   

  	
  (a)(2)

  	
  9.10

  
	
   

  	
  (a)(3)

  	
  N.A.**

  
	
   

  	
  (a)(4)

  	
  N.A.

  
	
   

  	
  (a)(5)

  	
  9.10

  
	
   

  	
  (b)

  	
  9.8; 9.10

  
	
   

  	
  (c)

  	
  N.A.

  
	
  Section 

  	
  311(a)

  	
  9.11

  
	
   

  	
  (b)

  	
  9.11

  
	
   

  	
  (c)

  	
  N.A.

  
	
  Section 

  	
  312(a)

  	
  2.5

  
	
   

  	
  (b)

  	
  13.3

  
	
   

  	
  (c)

  	
  13.3

  
	
  Section 

  	
  313(a)

  	
  9.6

  
	
   

  	
  (b)(1)

  	
  N.A.

  
	
   

  	
  (b)(2)

  	
  9.6

  
	
   

  	
  (c)

  	
  9.6; 13.2

  
	
   

  	
  (d)

  	
  9.6

  
	
  Section 

  	
  314(a)

  	
  6.2; 6.3, 6.4; 13.2

  
	
   

  	
  (b)

  	
  N.A.

  
	
   

  	
  (c)(1)

  	
  13.4(a)

  
	
   

  	
  (c)(2)

  	
  13.4(a)

  
	
   

  	
  (c)(3)

  	
  N.A.

  
	
   

  	
  (d)

  	
  N.A.

  
	
   

  	
  (e)

  	
  13.4(b)

  
	
   

  	
  (f)

  	
  N.A.

  
	
  Section

  	
   315(a)

  	
  9.1(b)

  
	
   

  	
  (b)

  	
  9.5; 13.2

  
	
   

  	
  (c)

  	
  9.1(a)

  
	
   

  	
  (d)

  	
  9.1(c)

  
	
   

  	
  (e)

  	
  8.11

  
	
  Section 

  	
  316(a)(last sentence)

  	
  2.9

  
	
   

  	
  (a)(1)(A)

  	
  8.5

  
	
   

  	
  (a)(1)(B)

  	
  8.4

  
	
   

  	
  (a)(2)

  	
  N.A.

  
	
   

  	
  (b)

  	
  8.7

  
	
   

  	
  (c)

  	
  13.5

  
	
  Section 

  	
  317(a)(1)

  	
  8.8

  
	
   

  	
  (a)(2)

  	
  8.9

  
	
   

  	
  (b)

  	
  2.4

  
				

 

 

 

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

**    N.A. means Not Applicable.

 

 

TABLE OF
CONTENTS

 

ARTICLE I

DEFINITIONS AND INCORPORATION
BY REFERENCE

 

	
  Section 1.1

  	
  Definitions.

  
	
  Section 1.2

  	
  Other Definitions.

  
	
  Section 1.3

  	
  Trust
  Indenture Act Provisions.

  
	
  Section 1.4

  	
  Rules of
  Construction.

  

 

ARTICLE
II

THE SECURITIES

 

	
  Section 2.1

  	
  Form and Dating

  
	
  Section 2.2

  	
  Execution and
  Authentication

  
	
  Section 2.3

  	
  Registrar,
  Paying Agent and Conversion Agent

  
	
  Section 2.4

  	
  Paying Agent To Hold Money
  in Trust

  
	
  Section 2.5

  	
  Securityholder Lists

  
	
  Section 2.6

  	
  Transfer and Exchange

  
	
  Section 2.7

  	
  Replacement
  Securities

  
	
  Section 2.8

  	
  Outstanding
  Securities

  
	
  Section 2.9

  	
  Treasury Securities

  
	
  Section 2.10

  	
  Temporary Securities

  
	
  Section 2.11

  	
  Cancellation

  
	
  Section
  2.12

  	
  Additional
  Transfer and Exchange Requirements

  
	
  Section 2.13

  	
  CUSIP Numbers

  

 

ARTICLE
III

REDEMPTION

 

	
  Section
  3.1

  	
  Right to
  Redeem; Notice to Trustee

  
	
  Section
  3.2

  	
  Selection
  of Securities to be Redeemed

  
	
  Section
  3.3

  	
  Notice of Redemption

  
	
  Section 3.4

  	
  Effect of
  Notice of Redemption

  
	
  Section 3.5

  	
  Deposit of
  Redemption Price

  
	
  Section 3.6

  	
  Securities
  Redeemed in Part

  
	
  Section
  3.7

  	
  Conversion
  Arrangement on Call For Redemption

  

 

ARTICLE
IV

CONVERSION

 

	
  Section 4.1

  	
  Conversion Privilege

  
	
  Section 4.2

  	
  Conversion Procedure

  
	
  Section 4.3

  	
  Fractional Shares

  
	
  Section 4.4

  	
  Taxes on Conversion

  
	
  Section 4.5

  	
  Company to
  Provide Stock

  
	
  Section 4.6

  	
  Adjustment
  of Conversion Price

  
	
  Section 4.7

  	
  No Adjustment

  

 

ii

 

	
  Section 4.8

  	
  Adjustment for
  Tax Purposes

  
	
  Section 4.9

  	
  Notice of Adjustment

  
	
  Section
  4.10

  	
  Notice of
  Certain Transactions

  
	
  Section 4.11

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

  
	
  Section 4.12

  	
  Trustee’s Disclaimer

  
	
  Section 4.13

  	
  Voluntary Reduction

  

 

ARTICLE
V

REPURCHASE OF SECURITIES AT OPTION OF 

THE HOLDER ON SPECIFIC DATES

 

	
  Section 5.1

  	
  Optional Put

  
	
  Section
  5.2

  	
  The
  Company’s Right to Elect Manner of Payment of Optional Repurchase Price on
  December 20, 2006

  
	
  Section 5.3

  	
  Purchase with Cash

  
	
  Section
  5.4

  	
  Payment
  by Issuance of Shares of Common Stock on December 20, 2006

  
	
  Section 5.5

  	
  Notice of Election

  
	
  Section 5.6

  	
  Covenants of the
  Company

  
	
  Section 5.7

  	
  Procedure upon
  Repurchase

  
	
  Section 5.8

  	
  Taxes

  
	
  Section
  5.9

  	
  Effect
  of Optional Repurchase Notice

  
	
  Section
  5.10

  	
  Deposit
  of Optional Repurchase Price

  
	
  Section
  5.11

  	
  Securities
  Repurchased in Part

  
	
  Section
  5.12

  	
  Comply
  with Securities Laws Upon Purchase of Securities

  
	
  Section 5.13

  	
  Repayment to the
  Company

  
	
  Section
  5.14

  	
  Conversion
  Arrangement on Repurchase

  

 

ARTICLE
VI

COVENANTS

 

	
  Section 6.1

  	
  Payment of Securities

  
	
  Section 6.2

  	
  SEC Reports

  
	
  Section 6.3

  	
  Compliance
  Certificates

  
	
  Section 6.4

  	
  Further
  Instruments and Acts

  
	
  Section
  6.5

  	
  Maintenance
  of Corporate Existence

  
	
  Section
  6.6

  	
  Rule 144A
  Information Requirement

  
	
  Section 6.7

  	
  Stay,
  Extension and Usury Laws

  
	
  Section 6.8

  	
  Payment of Liquidated Damages

  
	
  Section 6.9

  	
  Resale of
  Certain Securities

  
	
  Section 6.10

  	
  Tax Treatment
  of Securities

  

 

ARTICLE VII

CONSOLIDATION, MERGER,
CONVEYANCE, TRANSFER OR LEASE

 

	
  Section 7.1

  	
  Company May Consolidate, Etc.
  Only on Certain Terms

  
	
  Section 7.2

  	
  Successor Substituted

  

 

iii

 

ARTICLE VIII

DEFAULT AND REMEDIES

 

	
  Section 8.1

  	
  Events of Default

  
	
  Section 8.2

  	
  Acceleration

  
	
  Section 8.3

  	
  Other Remedies

  
	
  Section
  8.4

  	
  Waiver
  of Defaults and Events of Default

  
	
  Section 8.5

  	
  Control By Majority

  
	
  Section 8.6

  	
  Limitations on Suits

  
	
  Section
  8.7

  	
  Rights
  of Holders to Receive Payment and to Convert

  
	
  Section 8.8

  	
  Collection Suit
  By Trustee

  
	
  Section
  8.9

  	
  Trustee
  May File Proofs of Claim

  
	
  Section 8.10

  	
  Priorities

  
	
  Section 8.11

  	
  Undertaking for
  Costs

  

 

ARTICLE IX

TRUSTEE

 

	
  Section 9.1

  	
  Duties of Trustee

  
	
  Section 9.2

  	
  Rights of Trustee

  
	
  Section 9.3

  	
  Individual
  Rights of Trustee

  
	
  Section 9.4

  	
  Trustee’s Disclaimer

  
	
  Section
  9.5

  	
  Notice
  of Default or Events of Default

  
	
  Section 9.6

  	
  Reports By
  Trustee To Holders

  
	
  Section 9.7

  	
  Compensation and
  Indemnity

  
	
  Section 9.8

  	
  Replacement of
  Trustee

  
	
  Section 9.9

  	
  Successor Trustee By
  Merger, Etc

  
	
  Section 9.10

  	
  Eligibility;
  Disqualification

  
	
  Section
  9.11

  	
  Preferential
  Collection of Claims Against Company

  

 

ARTICLE X

SATISFACTION AND DISCHARGE OF
INDENTURE

 

	
  Section
  10.1

  	
  Satisfaction
  and Discharge of Indenture

  
	
  Section 10.2

  	
  Application of
  Trust Money

  
	
  Section 10.3

  	
  Repayment To Company

  
	
  Section 10.4

  	
  Reinstatement

  

 

ARTICLE XI

AMENDMENTS, SUPPLEMENTS AND
WAIVERS

 

	
  Section 11.1

  	
  Without Consent
  of Holders

  
	
  Section 11.2

  	
  With Consent of
  Holders

  
	
  Section
  11.3

  	
  Compliance
  With Trust Indenture Act

  
	
  Section
  11.4

  	
  Revocation
  and Effect of Consents

  
	
  Section
  11.5

  	
  Notation
  on or Exchange of Securities

  
	
  Section 11.6

  	
  Trustee To Sign Amendments,
  Etc

  

 

 

iv

 

ARTICLE XII

REPURCHASE AT THE OPTION OF
HOLDERS UPON A CHANGE IN CONTROL

 

	
  Section 12.1

  	
  Change in Control
  Put

  
	
  Section
  12.2

  	
  Effect
  of Change in Control Repurchase Notice

  
	
  Section
  12.3

  	
  Deposit
  of Change in Control Repurchase Price

  
	
  Section 12.4

  	
  Securities
  Purchased in Part

  
	
  Section
  12.5

  	
  Compliance
  with Securities Laws Upon Purchase of Securities

  
	
  Section 12.6

  	
  Repayment to the
  Company

  

 

ARTICLE XIII

MISCELLANEOUS

 

	
  Section 13.1

  	
  Trust
  Indenture Act Controls

  
	
  Section 13.2

  	
  Notices

  
	
  Section
  13.3

  	
  Communications
  By Holders With Other Holders

  
	
  Section
  13.4

  	
  Certificate
  and Opinion as to Conditions Precedent

  
	
  Section
  13.5

  	
  Record
  Date for Vote or Consent of Securityholders

  
	
  Section
  13.6

  	
  Rules
  By Trustee, Paying Agent, Registrar and Conversion Agent

  
	
  Section 13.7

  	
  Legal Holidays

  
	
  Section 13.8

  	
  Governing Law

  
	
  Section
  13.9

  	
  No
  Adverse Interpretation of Other Agreements

  
	
  Section 13.10

  	
  No Recourse
  Against Others

  
	
  Section 13.11

  	
  Successors

  
	
  Section 13.12

  	
  Multiple
  Counterparts

  
	
  Section 13.13

  	
  Separability

  
	
  Section 13.14

  	
  Table of Contents, Headings,
  Etc

  

 

EXHIBITS

 

	
  Form of Security

  

 

v

 

THIS INDENTURE dated as of December 18, 2001 is between Evergreen
Resources, Inc., a Colorado corporation (the “Company”), and First Union
National Bank, a national banking association, as Trustee (the “Trustee”).

 

In consideration of the premises and the purchase of
the Securities by the Holders thereof, both parties agree as follows for the
benefit of the other and for the equal and ratable benefit of the registered
Holders of the Company’s 4.75% Senior Convertible Notes due 2021.

 

ARTICLE I

DEFINITIONS
AND INCORPORATION BY REFERENCE

 

Section 1.1      Definitions.

 

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

 

“Agent”
means any Registrar,  Paying Agent or
Conversion Agent.

 

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

 

“Board of
Directors” means the board of directors of the Company or any
authorized committee of the Board of Directors.

 

“Business Day”
means each day that is not a Legal Holiday.

 

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

 

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

 

“Certificated
Security” means a Security that is in substantially the form
attached hereto as Exhibit A and that does not include the information or the
schedule called for by footnotes 1, 3 and 4 thereof.

 

“Closing
Price Per Share” means the closing price per share of the Company’s
Common Stock determined in accordance with Section 4.6(d) hereof.

 

“Common Stock”
means the common stock of the Company, no par value, as it exists on the date
of this Indenture and any shares of any class or classes of Capital Stock of
the Company resulting from any reclassification or reclassifications thereof
and which have no preference in 

 

 

respect of dividends or of amounts payable in the
event of any voluntary or involuntary liquidation, dissolution or winding-up of
the Company and which are not subject to redemption by the Company; provided,
however, that if at any time there shall be more than one such
resulting class, the shares of each such class then so issuable on conversion
of Securities shall be substantially in the proportion which the total number of
shares of such class resulting from all such reclassifications bears to the
total number of shares of all such classes resulting from all such
reclassifications.

 

“Company”
means the party named as such in this Indenture until a successor replaces it
pursuant to this Indenture, and thereafter means the successor.

 

“Contingent Interest” has
the meaning specified in Section 1 of the form of Security attached hereto as
Exhibit A.

 

“Conversion Period”
means the period from and including the 30th Trading Day in a fiscal quarter
to, but not including, the 30th Trading Day in the immediately following fiscal
quarter.

 

“Conversion Rate”
means the number of shares of Common Stock into which each $1,000 principal
amount of Securities is convertible, which is initially $50.00, subject to
adjustments as set forth herein.

 

“Conversion Value”
of a Security as of any date means the product of the Sale Price of a share of
Common Stock times the number of shares of Common Stock into which the Security
could then be converted (assuming that the Security was convertible as of such
date).

 

“Corporate Trust Office” means the corporate trust office of
the Trustee at which at any particular time its corporate trust business shall
be administered, which office at the date of the execution of this Indenture is
located at 5847 San Felipe, Suite 1050, Houston, Texas 77057, Attention:
Corporate Trust Group, or at any other time at such other address as the
Trustee may designate from time to time by notice to the Company.

 

“Default” or “default” means, when used with respect to the
Securities, any event which is or, after notice or passage of time or both,
would be an Event of Default.

 

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

 

“Ex-Dividend Time” means, with respect to any issuance or
distribution on shares of Common Stock, the first date on which the shares of
Common Stock trade regular way on the principal securities market on which the
shares of Common Stock are then traded without the right to receive such
issuance or distribution.

 

“Fair Market Value” shall mean the amount which a willing
buyer would pay a willing seller in an arm’s length transaction (as determined
by the Board of Directors, whose determination shall be conclusive).

 

“Final Maturity Date” means December 15, 2021.

 

2

 

“GAAP” means generally accepted accounting
principles in the United States of America as in effect as of the date of this
Indenture, including those set forth in (1) the opinions and pronouncements of
the Accounting Principles Board of the American Institute of Certified Public
Accountants, (2) the statements and pronouncements of the Financial Accounting
Standards Board, (3) such other statements by such other entity as approved by
a significant segment of the accounting profession and (4) the rules and
regulations of the SEC governing the inclusion of financial statements
(including pro forma financial statements) in registration statements filed
under the Securities Act and periodic reports required to be filed pursuant to
Section 13 of the Exchange Act, including opinions and pronouncements in staff
accounting bulletins and similar written statements from the accounting staff
of the SEC.

 

“Global Security” means a permanent Global Security that is
in substantially the form attached hereto as Exhibit A and that includes the
information and schedule called for by footnotes 1, 3 and 4 thereof and which
is deposited with the Depositary or its custodian and registered in the name of
the Depositary or its nominee.

 

“Holder” or “Securityholder” means the person in whose name a
Security is registered on the Primary Registrar’s books.

 

“Indebtedness” means obligations (other than nonrecourse
obligations) of, or guaranteed or assumed by, the Company for borrowed money,
including obligations evidenced by bonds, debentures, notes or other similar
instruments and reimbursement and cash collateralization of letters of credit,
bankers’ acceptances, interest rate hedge and currency hedge agreements.

 

“Indenture” means this Indenture as amended or supplemented
from time to time pursuant to the terms of this Indenture.

 

“Liquidated Damages” has the meaning specified in Section
3(a) of the Registration Rights Agreement. All references herein or in the
Securities to interest accrued or payable as of any date shall include any
Liquidated Damages accrued or payable as of such date as provided in the
Registration Rights Agreement.

 

“Market Price”
as of any date of determination means the average of the Sale Prices of the
shares of Common Stock for the five Trading Day period ending on (if the third
Business Day prior to the applicable date of determination is a Trading Day, or
if not, then on the last Trading Day prior to), the third Business Day prior to
the applicable Optional Repurchase Date appropriately adjusted to take into
account the occurrence, during the period commencing on the first of such
Trading Days during such five Trading Day period and ending on such date of
determination, of any event described in Section 4.6; subject, however, to the
conditions set forth in Section 4.7.

 

“Maturity” means the date on which the outstanding principal
amount, Redemption Price, Optional Repurchase Price or Change in Control
Repurchase Price with respect to such Securities becomes due and payable as
therein or herein provided, whether at the Final Maturity Date or by
acceleration, conversion, call for redemption, exercise of a repurchase right
or otherwise.

 

“Moody’s” means Moody’s Investors Service Inc. and its
successors.

 

3

 

“Officer” means the Chairman of the Board, the Chief
Executive Officer, the President, any Vice President, the Chief Financial
Officer, the Controller, the Secretary or any Assistant Secretary, the
Treasurer or any Assistant Treasurer of the Company.

 

“Officers’ Certificate” means a certificate signed by two
Officers; provided,
however, that for purposes of Sections 4.11 and 6.3, “Officers’
Certificate” means a certificate signed by the principal executive officer,
principal financial officer or principal accounting officer of the Company and
by one other Officer.

 

“Opinion of Counsel” means a written opinion from legal
counsel. The counsel may be an employee of or counsel to the Company or the
Trustee.

 

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

 

“Principal” or “principal” of a debt
security, including the Securities, means the principal of the security plus,
when appropriate, the premium, if any, on the security.

 

             “Record Date” shall mean, with respect to
any dividend, distribution or other transaction or event in which the holders
of shares of Common Stock have the right to receive any cash, securities or
other property or in which the shares of Common Stock (or other applicable
security) is exchanged for or converted into any combination of cash,
securities or other 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).

 

             “Redemption Date” or “redemption date,”
when used with respect to any Security to be redeemed, means the date fixed for
such redemption pursuant to this Indenture.

 

             “Redemption Price” or “redemption price,”
when used with respect to any Security to be redeemed, means the price fixed
for such redemption pursuant to this Indenture, as set forth in the form of
Security annexed as Exhibit A hereto.

 

             “Registration Rights Agreement” means the
Registration Rights Agreement, dated as of December 18, 2001, between the
Company and Bear, Stearns & Co. Inc., First Union Securities, Inc., UBS
Warburg LLC, Jefferies & Company, Inc. and Stifel Nicolaus & Company,
Incorporated, as initial purchasers.

 

             “Regular Record Date” for the interest
(including Contingent Interest) payable on the Note means June 1 and December 1
(whether or not a Business Day), as applicable, next preceding the
corresponding Interest Payment Date.

 

             “Regulation S” means Regulation S under
the Securities Act.

 

             “Restricted Certificated Security” means a
Certificated Security which is a Transfer Restricted Security.

 

4

 

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

 

“Restricted Security” means a Restricted Certificated
Security or a Restricted Global Security.

 

“Rule 144” means Rule 144 under the Securities Act or any
successor to such Rule.

 

“Rule 144A” means Rule 144A under the Securities Act or any
successor to such Rule.

 

“Sale Price”
of the shares of Common Stock on any date means:

 

                          (1)        the
closing per share sale price (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 average ask prices) on such date as reported in
the composite transactions for the principal United States securities exchange
on which the shares of Common Stock are traded, or

 

                          (2)        if
the Common Shares are not listed on a United States national or regional
securities exchange, as reported by the National Association of Securities
Dealers Automated Quotation System or its successors.

 

“SEC” means the Securities and Exchange Commission.

 

“Securities” means the 4.75% Senior Convertible Notes due
2021 or any of them (each, a “Security”), as amended or supplemented from time
to time, that are issued under this Indenture.

 

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

 

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

 

             “Standard & Poor’s” means Standard
& Poor’s Ratings Service, a division of The McGraw Hill Companies, Inc.,
and its successors.

 

“Subsidiary” means, in respect of any Person, any
corporation, association, partnership or other business entity of which more
than 50% of the total voting power of shares of Capital Stock or other
interests (including partnership interests) entitled (without regard to the
occurrence of any contingency) to vote in the election of directors, managers,
general partners or trustees thereof is at the time owned or controlled,
directly or indirectly, by (i) such Person; (ii) such Person and one or more
Subsidiaries of such Person; or (iii) one or more Subsidiaries of such Person.

 

“TIA” means the Trust Indenture Act of 1939, as amended, as
in effect on the date of this Indenture, except as provided in Section 13.3,
and except to the extent any amendment to the Trust Indenture Act expressly
provides for application of the Trust Indenture Act as in effect on another
date.

 

5

 

“Trading Day” means:

 

(1)     if the
applicable Security is listed or admitted for trading on the New York Stock
Exchange, a day on which 

the New York Stock Exchange is open for business;

 

(2)     if that
Security is not listed on the New York Stock Exchange, a day on which trades
may be made on the 

Nasdaq National Market;

 

(3)     if that
Security is not so listed on the New York Stock Exchange and not quoted on the
Nasdaq National 

Market, a day on which the principal U.S. securities
exchange on which the Securities are listed is open for business;

or

 

(4)     if the
applicable Security is not so listed, admitted for trading or quoted, any day
other than a Saturday or a 

Sunday or a day on which banking institutions in the
State of New York are authorized or obligated by law or

executive order to close.

 

“Trading Price”
of a Security on any date of determination means:

 

(1)     the
average of the secondary market bid quotations per Security obtained by the
Company for $10,000,000 

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;

 

(2)     if at
least three such bids cannot reasonably be obtained by the Company, but two
such bids are obtained, 

then the average of the two bids shall be used;

 

(3)     if only
one such bid can reasonably be obtained by the Company, this one bid shall be
used; or

 

(4)     if the
Company cannot reasonably obtain at least one bid for $10,000,000 principal
amount of the 

Securities from a nationally recognized securities
dealer or in the Company’s reasonable judgment, the bid

quotations are not indicative of the secondary market
value of the Securities, then the trading price of the

Securities will equal (i) the then-applicable
conversion rate of the Securities multiplied by (ii) the Sale

Price of the Company’s Common Stock on such
determination date.

 

“Trustee” means the party named as such in this Indenture
until a successor replaces it in accordance with the provisions of this
Indenture, and thereafter means the successor.

 

“Trust Officer” means, with respect to the Trustee, any
officer assigned to the Corporate Trust Office, and also, with respect to a
particular matter, any other officer to whom such matter is referred because of
such officer’s knowledge of and familiarity with the particular subject.

 

“Unrestricted Certificated Security” means a Certificated
Security that is not a Transfer Restricted Security.

 

“Unrestricted Global Security” means a Global Security that
is not a Transfer Restricted Security.

 

6

 

“Voting Stock” of a Person means all classes of Capital Stock
or other interests (including partnership interests) of such Person then
outstanding and normally entitled (without regard to the occurrence of any
contingency) to vote in the election of directors, managers or trustees
thereof.

 

Section 1.2      Other Definitions.

 

	
   

  	
  Defined in

  
	
  Term

  	
   

  	
  Section

  
	
  “Agent Members”

  	
  2.1

  
	
  “Bankruptcy Law”

  	
  8.1

  
	
  “Change in Control”

  	
  12.1

  
	
  “Change in Control Repurchase Date”

  	
  12.1

  
	
  “Change in Control Repurchase Notice”

  	
  12.1

  
	
  “Change in Control Repurchase Price”

  	
  12.1

  
	
  “closing price”

  	
  4.6(d)

  
	
  “Company Notice”

  	
  5.5

  
	
  “Company Notice Date”

  	
  5.3

  
	
  “Company Order”

  	
  2.2

  
	
  “Contingent Payment Regulations”

  	
  6.10

  
	
  “Conversion Agent”

  	
  2.3

  
	
  “Conversion Date”

  	
  4.2

  
	
  “Conversion Price”

  	
  4.6

  
	
  “current market price”

  	
  4.6(d)

  
	
  “Custodian”

  	
  8.1

  
	
  “DTC”

  	
  2.1

  
	
  “Depositary”

  	
  2.1

  
	
  “Determination Date”

  	
  4.6(c)

  
	
  “Event of Default”

  	
  8.1

  
	
  “Expiration Date”

  	
  4.6(c)

  
	
  “Expiration Time”

  	
  4.6(c)

  
	
  “Legal Holiday”

  	
  13.7

  
	
  “NNM”

  	
  4.5

  
	
  “Optional Repurchase Date”

  	
  5.1

  
	
  “Optional Repurchase Notice”

  	
  5.1

  
	
  “Optional Repurchase Price”

  	
  5.1

  
	
  “Paying Agent”

  	
  2.3

  
	
  “Primary Registrar”

  	
  2.3

  
	
  “Purchased Shares”

  	
  4.6(c)

  
	
  “QIB”

  	
  2.1

  
	
  “Registrar”

  	
  2.3

  
	
  “Transfer Certificate”

  	
  2.12

  
	
  “Transfer Restricted Security”

  	
  2.12

  
	
  “Triggering Distribution”

  	
  4.6(c)

  
	
  “Unissued Shares”

  	
  12.1

  
			

 

7

 

Section 1.3      Trust Indenture Act Provisions.

 

Whenever this Indenture refers to a provision of the
TIA, that provision is incorporated by reference in and made a part of this
Indenture. The Indenture shall also include those provisions of the TIA
required to be included herein by the provisions of the Trust Indenture Reform
Act of 1990. The following TIA terms used in this Indenture have the following
meanings:

 

“indenture securities” means the Securities;

 

“indenture security holder” means a Securityholder;

 

“indenture to be qualified” means this Indenture;

 

             “indenture trustee” or “institutional
trustee” means the Trustee; and “obligor” on the indenture securities means the
Company or any other obligor on the Securities.

 

All other terms used in this Indenture that are
defined in the TIA, defined by TIA reference to another statute or defined by
any SEC rule and not otherwise defined herein have the meanings assigned to
them therein.

 

Section 1.4      Rules of Construction.

 

Unless the context otherwise requires:

 

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

 

(ii)        an
accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;

 

(iii)       words
in the singular include the plural, and words in the plural include the
singular;

 

(iv)       provisions
apply to successive events and transactions;

 

(v)        the
masculine gender includes the feminine and the neuter;

 

(vi)       references
to agreements and other instruments include subsequent amendments thereto; and

 

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

 

8

 

ARTICLE II

THE
SECURITIES

 

Section 2.1      Form
and Dating

 

The Securities and the Trustee’s certificate of
authentication shall be substantially in the respective forms set forth in
Exhibit A, which Exhibit is incorporated in and made part of this Indenture.
The Securities may have notations, legends or endorsements required by law,
stock exchange rule or usage. Each Security shall be dated the date of its
authentication. The Securities are being offered and sold by the Company in
transactions exempt from, or not subject to, the registration requirements of
the Securities Act.

 

(a)        Restricted Global
Securities. All of the Securities are initially being offered and
sold to qualified institutional buyers as defined in Rule 144A (collectively,
“QIBs” or individually, each a “QIB”) in reliance on Rule 144A under the
Securities Act and shall be issued initially in the form of one or more
Restricted Global Securities, which shall be deposited on behalf of the
purchasers of the Securities represented thereby with the Trustee, at its
Corporate Trust Office, as custodian for the depositary, The Depository Trust
Company (“DTC”) (such depositary, or any successor thereto, being hereinafter
referred to as the “Depositary”), and registered in the name of its nominee,
Cede & Co., duly executed by the Company and authenticated by the Trustee
as hereinafter provided. The aggregate principal amount of the Restricted
Global Security may from time to time be increased or decreased by adjustments
made on the records of the Securities Custodian as hereinafter provided,
subject in each case to compliance with the Applicable Procedures.

 

(b)        Global Securities in
General. Each Global Security shall represent such of the
outstanding Securities as shall be specified therein and each shall provide
that it shall represent the aggregate amount of outstanding Securities from
time to time endorsed thereon and that the aggregate amount of outstanding
Securities represented thereby may from time to time be reduced or increased,
as appropriate, to reflect exchanges, redemptions, purchases or conversions of
such Securities. Any endorsement of a Global Security to reflect the amount of
any increase or decrease in the amount of outstanding Securities represented
thereby shall be made by the Securities Custodian in accordance with the
standing instructions and procedures existing between the Depositary and the
Securities Custodian.

 

Members of, or participants in, the Depositary (“Agent
Members”) shall have no rights under this Indenture with respect to any Global
Security held on their behalf by the Depositary or under any Global Security,
and the Depositary (including, for this purpose, its nominee) may be treated by
the Company, the Trustee and any agent of the Company or the Trustee as the
absolute owner and Holder of such Global Security for all purposes whatsoever.
Notwithstanding the foregoing, nothing herein shall (A) 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 (B) impair, as between the Depositary and its Agent Members, the
operation of customary practices governing the exercise of the rights of a
Holder of any Security.

 

9

 

(c)        Certificated Securities.
Certificated Securities shall be issued only under the limited
circumstances provided in Section 2.12(a)(1) hereof.

 

Section 2.2      Execution and Authentication

 

An Officer shall sign the Securities for the Company
by manual or facsimile signature attested by the manual or facsimile signature
of the Secretary or an Assistant Secretary of the Company. Typographic and
other minor errors or defects in any such facsimile signature shall not affect
the validity or enforceability of any Security which has been authenticated and
delivered by the Trustee.

 

If an Officer whose signature is on a Security no
longer holds that office at the time the Trustee authenticates the Security,
the Security shall be valid nevertheless.

 

A Security shall not be valid until an authorized
signatory of the Trustee manually signs the certificate of authentication on
the Security. The signature shall be conclusive evidence that the Security has
been authenticated under this Indenture.

 

The Trustee shall authenticate and make available for
delivery Securities for original issue in the aggregate principal amount of up
to $100,000,000 upon receipt of a written order or orders of the Company signed
by an Officer of the Company (a “Company Order”). The Company Order shall
specify the amount of Securities to be authenticated, shall provide that all
such Securities will be represented by a Restricted Global Security and the
date on which each original issue of Securities is to be authenticated. The
aggregate principal amount of Securities outstanding at any time may not exceed
$100,000,000 except as provided in Section 2.7.

 

The Trustee shall act as the initial authenticating
agent. Thereafter, the Trustee may appoint an authenticating agent acceptable
to the Company to authenticate Securities. An authenticating agent may
authenticate Securities whenever the Trustee may do so. Each reference in this
Indenture to authentication by the Trustee includes authentication by such
agent. An authenticating agent shall have the same rights as an Agent to deal
with the Company or an Affiliate of the Company.

 

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

 

Section 2.3      Registrar, Paying Agent and Conversion Agent

 

The Company shall maintain one or more offices or
agencies where Securities may be presented for registration of transfer or for
exchange (each, a “Registrar”), one or more offices or agencies where
Securities may be presented for payment (each, a “Paying Agent”), one or more
offices or agencies where Securities may be presented for conversion (each, a
“Conversion Agent”) and one or more offices or agencies where notices and
demands to or upon the Company in respect of the Securities and this Indenture
may be served. The Company will at all times maintain a Paying Agent,
Conversion Agent, Registrar and an office or agency where notices and demands
to or upon the Company in respect of the Securities and this Indenture may be
served in the Borough of Manhattan, the City of New York. One of the Registrars
(the “Primary Registrar”) shall keep a register of the Securities and of their
transfer and exchange.

 

10

 

The Company shall enter into an appropriate agency
agreement with any Agent not a party to this Indenture. The agreement shall
implement the provisions of this Indenture that relate to such Agent. The
Company shall notify the Trustee of the name and address of any Agent not a
party to this Indenture. If the Company fails to maintain a Registrar, Paying
Agent, Conversion Agent or agent for service of notices and demands in any
place required by this Indenture, or fails to give the foregoing notice, the
Trustee shall act as such. The Company or any Affiliate of the Company may act
as Paying Agent (except for the purposes of Section 6.1 and Article X).

 

The Company hereby initially designates the Trustee as
Paying Agent, Registrar, Securities Custodian and Conversion Agent (which shall
initially be located at 1525 West W.T. Harris Boulevard, Charlotte, North
Carolina 28288-1153, Attention: Corporate Trust Operations), one such office or
agency of the Company for each of the aforesaid purposes.

 

Section 2.4      Paying
Agent To Hold Money in Trust

 

Prior to 11:00 a.m., New York City time, on each due
date of the principal of or interest, if any, on any Securities, the Company
shall deposit with a Paying Agent a sum sufficient to pay such principal or
interest (including Contingent Interest), if any, so becoming due. Subject to
Section 5.9, a Paying Agent shall hold in trust for the benefit of
Securityholders or the Trustee all money held by the Paying Agent for the
payment of principal of or interest, if any, on the Securities, and shall
notify the Trustee of any default by the Company (or any other obligor on the
Securities) in making any such payment. If the Company or an Affiliate of the
Company acts as Paying Agent, it shall, before 11:00 a.m., New York City time,
on each due date of the principal of or interest on any Securities, segregate
the money and hold it as a separate trust fund. The Company at any time may
require a Paying Agent to pay all money held by it to the Trustee, and the
Trustee may at any time during the continuance of any Default, upon written
request to a Paying Agent, require such Paying Agent to forthwith pay to the
Trustee all sums so held in trust by such Paying Agent. Upon doing so, the
Paying Agent (other than the Company) shall have no further liability for the
money.

 

Section 2.5      Securityholder
Lists

 

The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and
addresses of Securityholders. If the Trustee is not the Primary Registrar, the
Company shall furnish to the Trustee on or before each semiannual interest
payment date and at such other times as the Trustee may request in writing a
list in such form and as of such date as the Trustee may reasonably require of
the names and addresses of Securityholders.

 

Section 2.6      Transfer and Exchange

 

(a)        Subject
to compliance with any applicable additional requirements contained in Section
2.12, when a Security is presented to a Registrar with a request to register a
transfer thereof or to exchange such Security for an equal principal amount of
Securities of other authorized denominations, the Registrar shall register the
transfer or make the exchange as requested; provided, however, that every
Security presented or surrendered for registration of transfer or exchange
shall be duly endorsed or accompanied by an assignment form and, if

 

11

 

applicable, a transfer certificate each in the form included in Exhibit
A, and in form satisfactory to the Registrar duly executed by the Holder
thereof or its attorney duly authorized in writing. To permit registration of
transfers and exchanges, upon surrender of any Security for registration of
transfer or exchange at an office or agency maintained pursuant to Section 2.3,
the Company shall execute and the Trustee shall authenticate Securities of a
like aggregate principal amount at the Registrar’s request. Any exchange or
transfer shall be without charge, except that the Company or the Registrar may
require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto, and provided, that this
sentence shall not apply to any exchange pursuant to Section 2.7, 2.10,
2.12(a)(1), 3.6, 4.2 (last paragraph), 5.11, 11.5 or 12.4.

 

Neither the Company, any Registrar nor the Trustee
shall be required to exchange or register a transfer of (a) any Securities for
a period of 15 days next preceding any mailing of a notice of Securities to be
redeemed, (b) any Securities or portions thereof selected or called for
redemption (except, in the case of redemption of a Security in part, the
portion not to be redeemed) or (c) any Securities or portions thereof in
respect of which an Optional Repurchase Notice or a Change in Control
Repurchase Notice has been delivered and not withdrawn by the Holder thereof
(except, in the case of the purchase of a Security in part, the portion not to
be purchased).

 

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

 

(b)        Any
Registrar appointed pursuant to Section 2.3 hereof shall provide to the Trustee
such information as the Trustee may reasonably require in connection with the
delivery by such Registrar of Securities upon transfer or exchange of
Securities.

 

(c)        Each
Holder of a Security agrees to indemnify the Company, the Registrar and the
Trustee against any liability that may result from the transfer, exchange or
assignment of such Holder’s Security in violation of any provision of this
Indenture and/or applicable United States federal or state securities law.

 

The Trustee shall have no obligation or duty to
monitor, determine or inquire as to compliance with any restrictions on
transfer imposed under this Indenture or under applicable law with respect to
any transfer of any interest in any Security (including any transfers between
or among Agent Members or other beneficial owners of interests in any Global
Security) other than to require delivery of such certificates and other
documentation or evidence as are expressly required by, and to do so if and
when expressly required by the terms of, this Indenture, and to examine the
same to determine substantial compliance as to form with the express
requirements hereof.

 

Section 2.7      Replacement Securities

 

If any mutilated Security is surrendered to the
Company, a Registrar or the Trustee, or the Company, a Registrar and the
Trustee receive evidence to their satisfaction of the destruction, loss or
theft of any Security, and there is delivered to the Company, the applicable
Registrar and

 

 

12

 

the Trustee such security or indemnity as will be required by them to
save each of them harmless, then, in the absence of notice to the Company, such
Registrar or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute, and upon its written request the Trustee
shall authenticate and deliver, in exchange for any such mutilated Security or
in lieu of any such destroyed, lost or stolen Security, a new Security of like
tenor and principal amount, bearing a number not contemporaneously outstanding.

 

In case any such mutilated, destroyed, lost or stolen
Security has become or is about to become due and payable, or is about to be
redeemed or purchased by the Company pursuant to Article III, the Company in
its discretion may, instead of issuing a new Security, pay, redeem or purchase
such Security, as the case may be.

 

Upon the issuance of any new Securities under this
Section 2.7, the Company shall require the payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in relation thereto
and any other reasonable expenses (including the reasonable fees and expenses
of the Trustee or the Registrar) in connection therewith.

 

Every new Security issued pursuant to this Section 2.7
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 benefits of this Indenture equally and proportionately with
any and all other Securities duly issued hereunder.

 

The provisions of this Section 2.7 are (to the extent
lawful) exclusive and shall preclude (to the extent lawful) all other rights
and remedies with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities.

 

Section 2.8      Outstanding Securities

 

Securities outstanding at any time are all Securities
authenticated by the Trustee, except for those canceled by it, those delivered
to it for cancellation and those described in this Section 2.8 as not
outstanding.

 

If a Security is replaced pursuant to Section 2.7, it
ceases to be outstanding unless the Company receives proof satisfactory to it
that the replaced Security is held by a bona fide purchaser.

 

If a Paying Agent (other than the Company or an
Affiliate of the Company) holds on a redemption date, a Change in Control
Repurchase Date, an Optional Repurchase Date or the Final Maturity Date money
sufficient to pay the principal of (including premium, if any) and accrued
interest (including Contingent Interest) on Securities (or portions thereof)
payable on that date, then on and after that date such Securities (or portions
thereof, as the case may be) cease to be outstanding and interest on them
ceases to accrue.

 

Subject to the restrictions contained in Section 2.9,
a Security does not cease to be outstanding because the Company or an Affiliate
of the Company holds the Security.

 

 

13

 

Section 2.9      Treasury Securities

 

In determining whether the Holders of the required
principal amount of Securities have concurred in any notice, direction, waiver
or consent, Securities owned by the Company or any other obligor on the
Securities or by any Affiliate of the Company or of such other obligor shall be
disregarded, except that, for purposes of determining whether the Trustee shall
be protected in relying on any such notice, direction, waiver or consent, only
Securities which a Trust Officer of the Trustee actually knows are so owned
shall be so disregarded. Securities so owned which have been pledged in good
faith shall not be disregarded if the pledgee establishes to the satisfaction
of the Trustee the pledgee’s right so to act with respect to the Securities and
that the pledgee is not the Company or any other obligor on the Securities or
any Affiliate of the Company or of such other obligor.

 

Section 2.10    Temporary Securities

 

Until definitive Securities are ready for delivery,
the Company may prepare and execute, and, upon receipt of a Company Order, the
Trustee shall authenticate and deliver, temporary Securities. Temporary
Securities shall be substantially in the form of definitive Securities but may
have variations that the Company with the consent of the Trustee considers
appropriate for temporary Securities. Without unreasonable delay, the Company
shall prepare and the Trustee shall authenticate and deliver definitive
Securities in exchange for temporary Securities.

 

Section 2.11    Cancellation

 

The Company at any time may deliver Securities to the
Trustee for cancellation. The Registrar, the Paying Agent and the Conversion
Agent shall forward to the Trustee or its agent any Securities surrendered to
them for transfer, exchange, payment or conversion. The Trustee and no one else
shall cancel, in accordance with its standard procedures, all Securities
surrendered for transfer, exchange, redemption, payment, conversion or
cancellation and shall deliver the canceled Securities to the Company. All
Securities which are redeemed, purchased or otherwise acquired by the Company
or any of its Subsidiaries prior to the Final Maturity Date shall be delivered
to the Trustee for cancellation and the Company may not hold or resell such
Securities or issue any new Securities to replace any such Securities or any
Securities that any Holder has converted pursuant to Article IV. Without
limitation to the foregoing, any Securities acquired by any investment bankers
or other purchasers pursuant to Section 3.7 shall be surrendered for conversion
and thereafter cancelled, and may not be reoffered, sold or otherwise
transferred.

 

Section 2.12    Additional
Transfer and Exchange Requirements

 

(a)        Transfer and Exchange of Global Securities.

 

(1)         Certificated
Securities shall be issued in exchange for interests in the Global Securities
only if (x) the Depositary notifies the Company that it is unwilling or unable
to continue as Depositary for the Global Securities or if it at any time ceases
to be a “clearing agency” registered under the Exchange Act, if so required by
applicable law or regulation and a successor Depositary is not appointed by the
Company within 90 days, or (y) an Event of Default has occurred and is
continuing. In either case, the

 

14

 

Company shall execute, and the Trustee shall, upon
receipt of a Company Order (which the Company agrees to delivery promptly),
authenticate and deliver Certificated Securities in an aggregate principal
amount equal to the principal amount of such Global Securities in exchange
therefor. Only Restricted Certificated Securities shall be issued in exchange
for beneficial interests in Restricted Global Securities, and only Unrestricted
Certificated Securities shall be issued in exchange for beneficial interests in
Unrestricted Global Securities. Certificated Securities issued in exchange for
beneficial interests in Global Securities shall be registered in such names and
shall be in such authorized denominations as the Depositary, pursuant to
instructions from its direct or indirect participants or otherwise, shall
instruct the Trustee. The Trustee shall deliver or cause to be delivered such
Certificated Securities to the Persons in whose names such Securities are so
registered. Such exchange shall be effected in accordance with the Applicable
Procedures.

 

(2) Notwithstanding any other provisions of this
Indenture other than the provisions set forth in Section 2.12(a)(1), a Global
Security may not be transferred as a whole except by the Depositary to a
nominee of the Depositary or by a nominee of the Depositary to the Depositary
or another nominee of the Depositary or by the Depositary or any such nominee
to a successor Depositary or a nominee of such successor Depositary.

 

(b)        Transfer and Exchange of Certificated Securities. In
the event that Certificated Securities are issued in exchange for beneficial
interests in Global Securities in accordance with Section 2.12(a)(1) of this
Indenture, on or after such event when Certificated Securities are presented by a Holder to a Registrar
with a request:

 

(x)       to register the transfer of the
Certificated Securities to a person who will take delivery thereof in the

form of
Certificated Securities only; or

 

(y)       to exchange such Certificated Securities
for an equal principal amount of Certificated Securities of

other authorized
denominations, such Registrar shall register the transfer or make the exchange
as

requested;

 

provided, however, that the Certificated Securities
presented or surrendered for register of transfer or exchange:

 

(1)       shall be duly endorsed or accompanied by
a written instrument of transfer in accordance with the

proviso to the
first paragraph of Section 2.6; and

 

(2)       in the case of a Restricted Certificated
Security, such request shall be accompanied by the following

additional
information and documents, as applicable:

 

(i)         if such Restricted Certificated
Security is being delivered to the Registrar by a Holder for registration in
the name of such Holder, without transfer, or such Restricted Certificated
Security is being transferred to the Company or a Subsidiary of the Company, a
certification to that effect from such Holder (in substantially the form set
forth in the Transfer Certificate);

 

15

 

 

(ii)        if such Restricted Certificated Security
is being transferred to a person the Holder reasonably believes is a QIB in
accordance with Rule 144A or pursuant to an effective registration statement
under the Securities Act, a certification to that effect from such Holder (in
substantially the form set forth in the Transfer Certificate); or

 

(iii)       if such Restricted Certificated Security
is being transferred (i) pursuant to an exemption from the registration
requirements of the Securities Act in accordance with Rule 144 or (ii) pursuant
to an exemption from the registration requirements of the Securities Act (other
than pursuant to Rule 144A or Rule 144) and as a result of which, in the case of
a Security transferred pursuant to this clause (ii), such Security shall cease
to be a “restricted security” within the meaning of Rule 144, a certification
to that effect from the Holder (in substantially the form set forth in the
Transfer Certificate) and, if the Company or such Registrar so requests, a
customary Opinion of Counsel, certificates and other information reasonably
acceptable to the Company and such Registrar to the effect that such transfer
is in compliance with the registration requirements of the Securities Act.

 

(c)        Transfer of a Beneficial Interest in a
Restricted Global Security for a Beneficial Interest in an Unrestricted Global
Security. Any person having a beneficial interest in a Restricted
Global Security may upon request, subject to the Applicable Procedures,
transfer such beneficial interest to a person who is required or permitted to
take delivery thereof in the form of an Unrestricted Global Security. Upon
receipt by the Trustee of written instructions, or such other form of instructions
as is customary for the Depositary, from the Depositary or its nominee on
behalf of any person having a beneficial interest in a Restricted Global
Security and the following additional information and documents in such form as
is customary for the Depositary from the Depositary or its nominee on behalf of
the person having such beneficial interest in the Restricted Global Security
(all of which may be submitted by facsimile or electronically):

 

(1)    if such beneficial interest is being
transferred pursuant to an effective registration statement under the
Securities Act, a certification to that effect from the transferor (in
substantially the form set forth in the Transfer Certificate); or

 

(2)    if such beneficial interest is being
transferred (i) pursuant to an exemption from the registration requirements of
the Securities Act in accordance with Rule 144 or (ii) pursuant to an exemption
from the registration requirements of the Securities Act (other than pursuant
to Rule 144A or Rule 144) and as a result of which, in the case of a Security
transferred pursuant to this clause (ii), such Security shall cease to be a
“restricted security” within the meaning of Rule 144, a certification to that
effect from the transferor (in substantially the form set forth in the Transfer
Certificate) and, if the Company or the Trustee so requests, a customary
Opinion of Counsel, certificates and other information reasonably acceptable to
the Company and the Trustee to the effect that such transfer is in compliance
with the registration requirements of the Securities Act, the Trustee, as a
Registrar and Securities Custodian, shall reduce or cause to be reduced the
aggregate principal amount of the Restricted Global Security by the appropriate
principal amount and shall increase or cause to be increased the aggregate
principal amount of the

 

 

16

 

Unrestricted Global
Security by a like principal amount. Such transfer shall otherwise be effected
in accordance with the Applicable Procedures. If no Unrestricted Global
Security is then outstanding, the Company shall execute and the Trustee shall,
upon receipt of a Company Order (which the Company agrees to deliver promptly),
authenticate and deliver an Unrestricted Global Security.

 

(d)        Transfer of a Beneficial Interest in an
Unrestricted Global Security for a Beneficial Interest in a Restricted Global
Security. Any person having a beneficial interest in an Unrestricted
Global Security may upon request, subject to the Applicable Procedures,
transfer such beneficial interest to a person who is required or permitted to
take delivery thereof in the form of a Restricted Global Security (it being
understood that only QIBs may own beneficial interests in Restricted Global
Securities). Upon receipt by the Trustee of written instructions or such other
form of instructions as is customary for the Depositary, from the Depositary or
its nominee, on behalf of any person having a beneficial interest in an
Unrestricted Global Security and, in such form as is customary for the
Depositary, from the Depositary or its nominee on behalf of the person having
such beneficial interest in the Unrestricted Global Security (all of which may
be submitted by facsimile or electronically) a certification from the
transferor (in substantially the form set forth in the Transfer Certificate) to
the effect that such beneficial interest is being transferred to a person that
the transferor reasonably believes is a QIB in accordance with Rule 144A. The
Trustee, as a Registrar and Securities Custodian, shall reduce or cause to be
reduced the aggregate principal amount of the Unrestricted Global Security by
the appropriate principal amount and shall increase or cause to be increased
the aggregate principal amount of the Restricted Global Security by a like
principal amount. Such transfer shall otherwise be effected in accordance with
the Applicable Procedures. If no Restricted Global Security is then
outstanding, the Company shall execute and the Trustee shall, upon receipt of a
Company Order (which the Company agrees to deliver promptly), authenticate and
deliver a Restricted Global Security.

 

(e)        Transfers of Certificated Securities for
Beneficial Interest in Global Securities. In the event that
Certificated Securities are issued in exchange for beneficial interests in
Global Securities and, thereafter, the events or conditions specified in
Section 2.12(a)(1) which required such exchange shall cease to exist, the
Company shall mail notice to the Trustee and to the Holders stating that
Holders may exchange Certificated Securities for interests in Global Securities
by complying with the procedures set forth in this Indenture and briefly
describing such procedures and the events or circumstances requiring that such
notice be given. Thereafter, if Certificated Securities are presented by a
Holder to a Registrar with a request:

 

(x)     to register the transfer of such
Certificated Securities to a person who will take delivery thereof in the 

form of a beneficial
interest in a Global Security, which request shall specify whether such Global
Security will be a Restricted Global Security or an Unrestricted Global
Security; or

 

(y)    to exchange such Certificated Securities for
an equal principal amount of beneficial interests in a Global

Security, which
beneficial interests will be owned by the Holder transferring such Certificated
Securities (provided that in the case of such an exchange, Restricted
Certificated Securities may be exchanged only for Restricted Global Securities
and Unrestricted Certificated Securities may be exchanged only for 

 

17

 

Unrestricted Global
Securities), the Registrar shall register the transfer or make the exchange as
requested by canceling such Certificated Security and causing, or directing the
Securities Custodian to cause, the aggregate principal amount of the applicable
Global Security to be increased accordingly and, if no such Global Security is
then outstanding, the Company shall issue and the Trustee shall, upon receipt
of a Company Order (which the Company agrees to deliver promptly) authenticate
and deliver a new Global Security;

 

provided, however, that the Certificated Securities
presented or surrendered for registration of transfer or exchange:

 

(1)       shall be duly  endorsed or 
accompanied  by a written  instrument of transfer in accordance  with the

Section 2.6;

 

(2)       in the case of a Restricted Certificated
Security to be transferred for a beneficial interest in an Unrestricted Global
Security, such request shall be accompanied by the following additional
information and documents, as applicable:

 

(i)         if such Restricted Certificated
Security is being transferred pursuant to an effective registration statement
under the Securities Act, a certification to that effect from such Holder (in
substantially the form set forth in the Transfer Certificate); or

 

(ii)         if such Restricted Certificated
Security is being transferred pursuant to (A) an exemption from the
registration requirements of the Securities Act in accordance with Rule 144 or
(B) pursuant to an exemption from the registration requirements of the
Securities Act (other than pursuant to Rule 144A or Rule 144) and as a result
of which, in the case of a Security transferred pursuant to this clause (B), such
Security shall cease to be a “restricted security” within the meaning of Rule
144, a certification to that effect from such Holder (in substantially the form
set forth in the Transfer Certificate), and, if the Company or the Registrar so
requests, a customary Opinion of Counsel, certificates and other information
reasonably acceptable to the Company and the Trustee to the effect that such
transfer is in compliance with the registration requirements of the Securities
Act;

 

(3)       in the case of a Restricted Certificated
Security to be transferred or exchanged for a beneficial interest in a
Restricted Global Security, such request shall be accompanied by a
certification from such Holder (in substantially the form set forth in the
Transfer Certificate) to the effect that such Restricted Certificated Security
is being transferred to a person the Holder reasonably believes is a QIB
(which, in the case of an exchange, shall be such Holder) in accordance with
Rule 144A;

 

(4)        in the case of an Unrestricted Certificated
Security to be transferred or exchanged for a beneficial interest in an
Unrestricted Global Security, such request need not be accompanied by any
additional information or documents; and

 

18

 

(5)       in the case of an Unrestricted
Certificated Security to be transferred or exchanged for a beneficial interest
in a Restricted Global Security, such request shall be accompanied by a
certification from such Holder (in substantially the form set forth in the Transfer
Certificate) to the effect that such Unrestricted Certificated Security is
being transferred to a person the Holder reasonably believes is a QIB (which,
in the case of an exchange, shall be such Holder) in accordance with Rule 144A.

 

(f)         Legends.

 

(1)       Except as permitted by the following
paragraphs (2) and (3), each Global Security and Certificated Security (and all
Securities issued in exchange therefor or upon registration of transfer or
replacement thereof) shall bear a legend in substantially the form called for
by footnote 2 to Exhibit A hereto (each a “Transfer Restricted Security” for so
long as it is required by this Indenture to bear such legend). Each Transfer
Restricted Security shall have attached thereto a certificate (a “Transfer Certificate”)
in substantially the form called for by footnote 5 to Exhibit A hereto.

 

(2)        Upon any sale or transfer of a Transfer
Restricted Security (w) after the expiration of the holding period applicable
to sales of the Securities under Rule 144(k) of the Securities Act, (x)
pursuant to Rule 144, (y) pursuant to an effective registration statement under
the Securities Act or (z) pursuant to any other available exemption (other than
Rule 144A) from the registration requirements of the Securities Act and as a result
of which, in the case of a Security transferred pursuant to this clause (z),
such Security shall cease to be a “restricted security” within the meaning of
Rule 144:

 

(i)       in the case of any Restricted
Certificated Security, any Registrar shall permit the Holder thereof to
exchange such Restricted Certificated Security for an Unrestricted Certificated
Security, or (under the circumstances described in Section 2.12(e)) to transfer
such Restricted Certificated Security to a transferee who shall take such
Security in the form of a beneficial interest in an Unrestricted Global
Security, and in each case shall rescind any restriction on the transfer of
such Security; provided,
however, that the Holder of such Restricted Certificated Security
shall, in connection with such exchange or transfer, comply with the other
applicable provisions of this Section 2.12; and

 

(ii)      in the case of any beneficial interest in
a Restricted Global Security, the Trustee shall permit the beneficial owner
thereof to transfer such beneficial interest to a transferee who shall take
such interest in the form of a beneficial interest in an Unrestricted Global
Security and shall rescind any restriction on transfer of such beneficial
interest; provided, that such Unrestricted Global Security shall continue to be
subject to the provisions of Section 2.12(a)(2); and provided, further, that the owner
of such beneficial interest shall, in connection with such transfer, comply
with the other applicable provisions of this Section 2.12.

 

(3)        Upon the exchange, registration of
transfer or replacement of Securities not bearing the legend described in
paragraph (1) above, the Company shall execute, and

 

19

 

the Trustee shall authenticate and deliver Securities
that do not bear such legend and that do not have a Transfer Certificate
attached thereto.

 

(4)        After the expiration of the holding
period pursuant to Rule 144(k) of the Securities Act, the Company may with the
consent of the Holder of a Restricted Global Security or Restricted
Certificated Security, remove any restriction of transfer on such Security, and
the Company shall execute, and the Trustee shall authenticate and deliver
Securities that do not bear such legend and that do not have a Transfer
Certificate attached thereto.

 

(g)        Transfers to the
Company. Nothing in this Indenture or in the Securities shall
prohibit the sale or other transfer of any Securities (including beneficial
interests in Global Securities) to the Company or any of its Subsidiaries,
which Securities shall thereupon be cancelled in accordance with Section 2.11.

 

Section 2.13    CUSIP Numbers

 

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

 

ARTICLE III

REDEMPTION

 

Section 3.1      Right to Redeem; Notice to Trustee

 

The Securities may be
redeemed at the election of the Company, as a whole or from time to time in
part, at any time on or after December 20, 2006, on at least 20 days and no
more than 60 days notice at the redemption prices specified in paragraph 5 of
the form of Security attached hereto as Exhibit A, together with accrued
interest (including Contingent Interest) up to but not including the Redemption
Date; provided
that if the Redemption Date is an interest payment date, interest will be
payable to the Holders in whose name the Securities are registered at the close
of business on the relevant record dates for payment of such interest.

 

If the Company elects to
redeem Securities pursuant to this Section 3.1 and paragraph 5 of the
Securities, it shall notify the Trustee in writing, at the earlier of the time
the Company notifies the Holders of such redemption or 45 days prior to the redemption
date as fixed by the Company (unless a shorter notice shall be satisfactory to
the Trustee), of the redemption date and the principal amount of Securities to
be redeemed. If fewer than all of the Securities are to be redeemed, the record
date relating to such redemption shall be selected by the Company and given to
the Trustee, which record date shall not be less than ten days after the date
of notice to the Trustee.

 

20

 

Section 3.2      Selection of Securities to be Redeemed

 

If less than all of the
Securities are to be redeemed, the Trustee shall, not more than 60 days prior
to the redemption date, select the Securities to be redeemed. The Trustee shall
make the selection from the Securities outstanding and not previously called
for redemption, by lot. Securities in denominations of $1,000 may only be
redeemed in whole. The Trustee may select for redemption portions (equal to
$1,000 or any multiple thereof) of the principal of Securities that have denominations
larger than $1,000. Provisions of this Indenture that apply to Securities
called for redemption also apply to portions of Securities called for
redemption.

 

If any Security selected
for partial redemption is converted in part before termination of the
conversion right with respect to the portion of the Security so selected, the
converted portion of such Security shall be deemed to be the portion selected
for redemption. Securities which have been converted during a selection of
Securities to be redeemed shall be treated by the Trustee as outstanding for
the purpose of such selection.

 

Section 3.3      Notice of Redemption

 

At least 20 days but not
more than 60 days before a Redemption Date, the Company shall mail or cause to
be mailed a notice of redemption to each Holder of Securities to be redeemed at
such Holder’s address as it appears on the Primary Registrar’s books.

 

The notice shall identify
the Securities (including CUSIP numbers) to be redeemed and shall state:

 

(1)         the Redemption Date;

 

(2)         the Redemption Price;

 

(3)         the then current Conversion Price;

 

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

 

(5)         that Securities called for redemption
must be presented and surrendered to a Paying Agent to collect the redemption
price;

 

(6)         that Holders who wish to convert
Securities must surrender such Securities for conversion no later than the
close of business on the second Business Day immediately preceding the
redemption date and must satisfy the other requirements in paragraph 8 of the
Securities;

 

(7)         that, unless the Company defaults in
making the redemption payment, interest (including Contingent Interest) on
Securities called for redemption shall cease accruing on and after the
redemption date and the only remaining right of the Holder shall be to receive
payment of the redemption price, plus accrued and unpaid interest (including
Contingent Interest), if any upon presentation and surrender to a Paying Agent
of the Securities; and

 

21

 

(8)         if any Security is being redeemed in
part, the portion of the principal amount of such Security to be redeemed and
that, after the redemption date, upon presentation and surrender of such
Security, a new Security or Securities in aggregate principal amount equal to
the unredeemed portion thereof will be issued.

 

If any of the Securities to be redeemed is in the form
of a Global Security, then the Company shall modify such notice to the extent
necessary to accord with the procedures of the Depositary applicable to
redemptions. At the Company’s written request, which request shall (i) be
irrevocable once given and (ii) set forth all relevant information required by
clauses (1) through (8) of the preceding paragraph, the Trustee shall give the notice
of redemption in the Company’s name and at the Company’s expense.

 

Section 3.4      Effect of Notice of Redemption

 

Once notice of redemption is mailed, Securities called
for redemption become due and payable on the redemption date and at the
redemption price stated in the notice, together with accrued and unpaid
interest, if any, except for Securities that are converted in accordance with
the provisions of Article IV. Upon presentation and surrender to a Paying
Agent, Securities called for redemption shall be paid at the redemption price,
plus accrued interest up to but not including the redemption date; provided if
the redemption date is an interest payment date, interest (including Contingent
Interest) will be payable to the Holders in whose names the Securities are
registered at the close of business on the relevant record dates for payment of
such interest.

 

Section 3.5      Deposit of Redemption
Price

 

The Company, prior to 11:00 a.m. New York City time,
on the Redemption Date, shall deposit with a Paying Agent (or, if the Company
acts as Paying Agent, shall segregate and hold in trust) money sufficient to
pay the redemption price of and accrued interest (including Contingent
Interest) on all Securities to be redeemed on that date, other than Securities
or portions thereof called for redemption on that date which have been
delivered by the Company to the Trustee for cancellation or have been
converted. The Paying Agent shall return to the Company any money not required
for that purpose because of the conversion of Securities pursuant to Article IV
or, if such money is then held by the Company in trust and is not required for
such purpose, it shall be discharged from the trust.

 

Section 3.6      Securities Redeemed in Part

 

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

 

Section 3.7      Conversion Arrangement
on Call For Redemption

 

In connection with any redemption of Securities, the
Company may arrange for the purchase and conversion of any Securities called
for redemption by an agreement with one or more investment bankers or other
purchasers to purchase such Securities by paying to a Paying Agent (other than
the Company or any of its Affiliates) in trust for the Holders, on or before

 

22

 

11:00 a.m., New York City time on the Redemption Date, an amount that,
together with any amounts deposited with such Paying Agent by the Company for
the redemption of such Securities, is not less than the Redemption Price,
together with interest (including Contingent Interest) accrued to, but not
including, the Redemption Date, of such Securities. Notwithstanding anything to
the contrary contained in this Article III, the obligation of the Company to
pay the Redemption Price of such Securities, including all accrued interest
(including Contingent Interest), shall be deemed to be satisfied and discharged
to the extent such amount is so paid by such purchasers; provided, however,
that nothing in this Section 3.7 shall relieve the Company of its obligation to
pay the Redemption Price, plus accrued interest to but excluding the relevant
redemption date, on Securities called for redemption. If such an agreement with
one or more investment banks or other purchasers is entered into, any
Securities called for redemption and not surrendered for conversion by the
Holders thereof prior to the relevant redemption date may, at the option of the
Company upon written notice to the Trustee, be deemed, to the fullest extent
permitted by law, acquired by such purchasers from such Holders and
(notwithstanding anything to the contrary contained in Article IV) surrendered
by such purchasers for conversion, all as of 11:00 a.m., New York City time on
the Redemption Date, subject to payment of the above amount as aforesaid. The
Paying Agent shall hold and pay to the Holders whose Securities are selected for
redemption any such amount paid to it for purchase in the same manner as it
would money deposited with it by the Company for the redemption of Securities.
Without the Paying Agent’s prior written consent, no arrangement between the
Company and such purchasers for the purchase and conversion of any Securities
shall increase or otherwise affect any of the powers, duties, responsibilities
or obligations of the Paying Agent as set forth in this Indenture, and the
Company agrees to indemnify the Paying Agent from, and hold it harmless
against, any loss, liability or expense arising out of or in connection with
any such arrangement for the purchase and conversion of any Securities between
the Company and such purchasers, including the costs and expenses incurred by
the Paying Agent in the defense of any claim or liability arising out of or in
connection with the exercise or performance of any of its powers, duties,
responsibilities or obligations under this Indenture.

 

ARTICLE IV

CONVERSION

 

Section 4.1      Conversion Privilege

 

(a)        Subject
to and upon compliance with the provisions of this Article, at the option of
the Holder, any Security or any portion of the principal amount thereof which
is an integral multiple of $1,000 may be converted at the principal amount thereof,
or of such portion thereof, into duly authorized, fully paid and nonassessable
shares of Common Stock, at the Conversion Price, determined as hereinafter
provided, in effect at the time of conversion:

 

(i)         during
any Conversion Period, if the Sale Price of the Common Stock for at least 20
Trading Days in the 30 consecutive Trading Day period ending on the first day
of the Conversion Period was more than 110% of the Conversion Price on that
thirtieth Trading Day;

 

(ii)        during
the five Trading Day period following any 10 consecutive Trading Day period in
which the average of the Trading Prices for the Security for

 

23

 

that 10 Trading
Day period was less than 105% of the average Conversion Value for the Security
during that period;

 

(iii)      during any period in which the Securities
are rated by Moody’s or Standard & Poor’s and the credit rating initially
assigned to the Securities by either Moody’s or Standard & Poor’s is
reduced by two or more ratings levels; provided, however, that the
Company shall have no obligation to have the Securities rated;

 

(iv)     if the Company has called the Security for
redemption, at any time prior to the close of business on the day that is two
Business Days prior to the Redemption Date, even if the Securities are not
otherwise convertible at that time; or

 

(v)       upon
the occurrence of the corporate transactions specified in clause (b) of this
Section 4.1.

 

The Company shall determine on a daily basis whether
the Security shall be convertible as a result of the occurrence of an event
specified in clause (i) or clause (ii) above and, if the Security shall be so
convertible, the Company shall promptly deliver to the Trustee written notice
thereof. Whenever the Security shall become convertible pursuant to Section
4.1, the Company or, at the Company’s written request, the Trustee in the name
and at the expense of the Company, shall notify the Holders of the event
triggering such convertibility in the manner provided in Section 4.2, and the
Company shall also publicly announce such information and publish it on the
Company’s web site. Any notice so given shall be conclusively presumed to have
been duly given, whether or not the Holder receives such notice.

 

(b)       In addition, in the event that:

 

(i)        (A) the Company distributes to all
holders of its shares of Common Stock rights or warrants entitling them (for a
period expiring within 60 days of the Record Date for such distribution) to
subscribe for or purchase shares of Common Stock, at a price per share less
than the Trading Price of the Common Stock on the Business Day immediately
preceding the announcement of such distribution, (B) the Company distributes to
all holders of its shares of Common Stock, cash or other assets, debt securities
or rights or warrants to purchase its securities, where the Fair Market Value
(as determined by the Board of Directors) of such distribution per share of
Common Stock exceeds 10% of the Trading Price of a share of Common Stock on the
Business Day immediately preceding the date of declaration of such
distribution, or (C) a Change in Control occurs, then, in each case, the
Security may be surrendered for conversion at any time on and after the date
that the Company gives notice to the Holders of such right, which shall be not
less than 20 days prior to the Ex-Dividend Time for such distribution, in the
case of (A) or (B), or within 30 days after the occurrence of the Change in
Control, in the case of (C), until the earlier of the close of business on the
Business Day immediately preceding the Ex-Dividend Time or the date the Company
announces that such distribution will not take place, in the case of (A)

 

24

 

or (B), or the
earlier of 30 days after the Company’s delivery of the Change in Control
Repurchase Notice or the date the Company announces that the Change in Control
will not take place, in the case of (C), or

 

(ii)       the Company consolidates with or merges
into another corporation, or is a party to a binding share exchange pursuant to
which the shares of Common Stock would be converted into cash, securities or
other property as set forth in Section 4.11 hereof, then the Security may be
surrendered for conversion at any time from and after the date which is 15 days
prior to the date announced by the Company as the anticipated effective time of
such transaction until 15 days after the actual date of such transaction.

 

The Conversion Rate, at any time, shall equal (A)
$1,000 divided by the Conversion Price at such time, rounded to three decimal
places (rounded up if the fourth decimal place thereof is 5 or more and
otherwise rounded down).

 

Notwithstanding the foregoing, if such Security is
called for redemption pursuant to Article III or submitted or presented for
repurchase pursuant to Articles V or XII, such conversion right shall terminate
at the close of business on the second Business Day immediately preceding the
Redemption Date, Optional Repurchase Date or Change in Control Repurchase Date,
as the case may be, for such Security or such earlier date as the Holder
presents such Security for redemption or for purchase (unless the Company shall
default in making the Redemption Price, Optional Repurchase Price or Change in
Control Repurchase Price payment when due, in which case the conversion right
shall terminate at the close of business on the date such default is cured and
such Security is redeemed or purchased, as the case may be). If such Security
is submitted or presented for purchase pursuant to Article III and is then
subsequently withdrawn, such conversion right shall no longer be terminated,
and the Holder of such Security may convert such Security pursuant to this
Section 4.1. The number of shares of Common Stock issuable upon conversion of a
Security shall be determined by dividing the principal amount of the Security
or portion thereof surrendered for conversion by the Conversion Price in effect
on the Conversion Date. The initial Conversion Price is set forth in paragraph
8 of the Securities and is subject to adjustment as provided in this Article
IV.

 

Provisions of this Indenture that apply to conversion
of all of a Security also apply to conversion of a portion of a Security.

 

A Security in respect of which a Holder has delivered
an Optional Repurchase Notice pursuant to Section 5.1 or a Change in Control
Repurchase Notice pursuant to Section 12.1(c) exercising the option of such
Holder to require the Company to purchase such Security may be converted only
if such Optional Repurchase Notice or Change in Control Repurchase Notice, as
the case may be, is withdrawn by a written notice of withdrawal delivered to a
Paying Agent prior to the close of business on the Business Day immediately
preceding the Optional Repurchase Date or Change in Control Repurchase Date, as
the case may be, in accordance with Sections 5.9 or 12.2, respectively.

 

25

 

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

 

Section 4.2      Conversion Procedure

 

To convert a Security, a Holder must (a) complete and
manually sign the conversion notice on the back of the Security and deliver
such notice to a Conversion Agent, (b) surrender the Security to a Conversion
Agent, (c) furnish appropriate endorsements and transfer documents if required
by a Registrar or a Conversion Agent, and (d) pay any transfer or similar tax,
if required. The date on which the Holder satisfies all of those requirements
is the “Conversion Date.” As soon as practicable after the Conversion Date, the
Company shall deliver to the Holder through a Conversion Agent a certificate
for the number of whole shares of Common Stock issuable upon the conversion and
cash in lieu of any fractional shares pursuant to Section 4.3. Anything herein
to the contrary notwithstanding, in the case of Global Securities, conversion
notices may be delivered and such Securities may be surrendered for conversion
in accordance with the Applicable Procedures as in effect from time to time.

 

The person in whose name the Common Stock certificate
is registered shall be deemed to be a stockholder of record on the Conversion
Date; provided,
however, that no surrender of a Security on any date when the stock
transfer books of the Company shall be closed shall be effective to constitute
the person or persons entitled to receive the shares of Common Stock upon such
conversion as the record holder or holders of such shares of Common Stock on
such date, but such surrender shall be effective to constitute the person or
persons entitled to receive such shares of Common Stock as the record holder or
holders thereof for all purposes at the close of business on the next
succeeding day on which such stock transfer books are open; provided, further,
that such conversion shall be at the Conversion Price in effect on the
Conversion Date as if the stock transfer books of the Company had not been
closed. Upon conversion of a Security, such person shall no longer be a Holder
of such Security. No payment or adjustment will be made for dividends or
distributions on shares of Common Stock issued upon conversion of a Security.

 

Securities so surrendered for conversion (in whole or
in part) during the period from the close of business on any regular record
date to the opening of business on the next succeeding interest payment date
(excluding Securities or portions thereof called for redemption on a Redemption
Date during the period beginning at the close of business on a regular record
date and ending at the opening of business on the first Business Day after the
next succeeding interest payment date, or if such interest payment date is not
a Business Day, the second such Business Day) shall also be accompanied by
payment in funds acceptable to the Company of an amount equal to the interest
payable on such interest payment date on the principal amount of such Security
then being converted, and such interest shall be payable to such registered
Holder notwithstanding the conversion of such Security, subject to the
provisions of this Indenture relating to the payment of defaulted interest by
the Company. Except as otherwise provided in this Section 4.2, no payment or
adjustment will be made for accrued interest on a converted Security. If the
Company defaults in the payment of interest payable on such interest payment
date, the Company shall promptly repay such funds to such Holder.

 

 

26

Nothing in this Section shall affect the right of a
Holder in whose name any Security is registered at the close of business on a
record date to receive the interest payable on such Security on the related
interest payment date in accordance with the terms of this Indenture and the
Securities. If a Holder converts more than one Security at the same time, the
number of shares of Common Stock issuable upon the conversion shall be based on
the aggregate principal amount of Securities converted.

 

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

 

Section 4.3      Fractional
Shares

 

The Company will not issue fractional shares of Common
Stock upon conversion of Securities. In lieu thereof, the Company will pay an
amount in cash based upon the current market price (determined as set forth in
Section 4.6(d)) of the Common Stock on the Trading Day immediately prior to the
Conversion Date.

 

Section 4.4      Taxes on Conversion

 

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

 

Section 4.5      Company
to Provide Stock

 

The Company shall, prior to issuance of any Securities
hereunder, and from time to time as may be necessary, reserve, out of its
authorized but unissued Common Stock, a sufficient number of shares of Common
Stock to permit the conversion of all outstanding Securities into shares of
Common Stock.

 

All shares of Common Stock delivered upon conversion
of the Securities shall be newly issued shares, shall be duly authorized,
validly issued, fully paid and nonassessable and shall be free from preemptive
rights and free of any lien or adverse claim.

 

The Company will endeavor promptly to comply with all
federal and state securities laws regulating the offer and delivery of shares
of Common Stock upon conversion of Securities, if any, and will list or cause
to have quoted such shares of Common Stock on each national securities exchange
or on the Nasdaq National Market (“NNM”) or other over-the-counter market or
such other market on which the Common Stock is then listed or quoted; provided, however,
that if rules of such automated quotation system or exchange permit the Company
to defer the listing of such Common Stock until the first conversion of the
Notes into Common Stock in accordance with the provisions of this Indenture,
the Company covenants to list such 

 

27

 

Common Stock issuable upon conversion of the Notes in accordance with
the requirements of such automated quotation system or exchange at such time.

 

Section 4.6      Adjustment of Conversion Price

 

The conversion price as stated in paragraph 8 of the
Securities (the “Conversion Price”) shall be adjusted from time to time by the
Company as follows:

 

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

 

(b)        In case the Company shall issue rights
or warrants to all or substantially all holders of its Common Stock entitling
them (for a period commencing no earlier than the record date described below
and expiring not more than 60 days after such record date) to subscribe for or
purchase shares of Common Stock (or securities convertible into Common Stock)
at a price per share (or having a conversion price per share) less than the
current market price per share of Common Stock (as determined in accordance
with subsection (d) of this Section 4.6) on the record date for the
determination of stockholders entitled to receive such rights or warrants, the
Conversion Price in effect immediately prior thereto shall be adjusted so that
the same shall equal the price determined by multiplying the Conversion Price
in effect immediately prior to such record date by a fraction of which the
numerator shall be the number of shares of Common Stock outstanding on such
record date plus the number of shares which the aggregate offering price of the
total number of shares of Common Stock so offered (or the aggregate conversion
price of the convertible securities so offered, which shall be determined by
multiplying the number of shares of Common Stock issuable upon conversion of
such convertible securities by the conversion price per share of Common Stock
pursuant to the terms of such convertible securities) would purchase at the
current market price per share (as defined in subsection (d) of this Section
4.6) of Common Stock on such record date, and of which the denominator shall be
the number of shares of Common Stock outstanding on such record date plus the
number of additional shares of Common Stock offered (or into which the
convertible securities so offered are convertible). Such adjustment shall be
made successively whenever any such rights or warrants are issued, and shall
become effective immediately after such record date. If at the end of the
period during which such rights or warrants are exercisable not all rights or
warrants shall have been exercised, the adjusted Conversion Price shall be
immediately readjusted to what it would have been based upon the number of
additional shares of Common Stock actually issued (or the number of shares of
Common Stock issuable upon conversion of convertible securities actually
issued).

 

28

 

(c)        In
case the Company shall distribute to all or substantially all holders of its
Common Stock any shares of Capital Stock of the Company (other than Common
Stock), evidences of indebtedness or other non-cash assets (including
securities of any person other than the Company but excluding (1) dividends or
distributions paid exclusively in cash or (2) dividends or distributions
referred to in subsection (a) of this Section 4.6), or shall distribute to all
or substantially all holders of its Common Stock rights or warrants to
subscribe for or purchase any of its securities (excluding those rights and
warrants referred to in subsection (b) of this Section 4.6), then in each such
case the Conversion Price shall be adjusted so that the same shall equal the
price determined by multiplying the current Conversion Price by a fraction of
which the numerator shall be the current market price per share (as defined in
subsection (d) of this Section 4.6) of the Common Stock on the record date
mentioned below less the fair market value on such record date (as determined
by the Board of Directors, whose determination shall be conclusive evidence of
such fair market value and which shall be evidenced by an Officers’ Certificate
delivered to the Trustee) of the portion of the Capital Stock, evidences of
indebtedness or other non-cash assets so distributed or of such rights or
warrants applicable to one share of Common Stock (determined on the basis of
the number of shares of Common Stock outstanding on the record date), and of
which the denominator shall be the current market price per share (as defined
in subsection (d) of this Section 4.6) of the Common Stock on such record date.
Such adjustment shall be made successively whenever any such distribution is
made and shall become effective immediately after the record date for the
determination of shareholders entitled to receive such distribution.

 

(1)           In case the Company shall, by
dividend or otherwise, at any time distribute (a “Triggering Distribution”) to
all or substantially all holders of its Common Stock cash in an aggregate
amount that, together with the aggregate amount of (A) any cash and the fair
market value (as determined by the Board of Directors, whose determination
shall be conclusive evidence thereof and which shall be evidenced by an
Officers’ Certificate delivered to the Trustee) of any other consideration
payable in respect of any tender offer by the Company or a Subsidiary of the
Company for Common Stock consummated within the 12 months preceding the date of
payment of the Triggering Distribution and in respect of which no Conversion
Price adjustment pursuant to this Section 4.6 has been made and (B) all other
cash distributions to all or substantially all holders of its Common Stock made
within the 12 months preceding the date of payment of the Triggering
Distribution and in respect of which no Conversion Price adjustment pursuant to
this Section 4.6 has been made, exceeds an amount equal to 10.0% of the product
of the current market price per share of Common Stock (as determined in
accordance with subsection (d) of this Section 4.6) on the Business Day (the
“Determination Date”) immediately preceding the day on which such Triggering
Distribution is declared by the Company multiplied by the number of shares of
Common Stock outstanding on the Determination Date (excluding shares held in
the treasury of the Company), the Conversion Price shall be reduced so that the
same shall equal the price determined by multiplying such Conversion Price in
effect immediately prior to the Determination Date by a fraction of which the
numerator shall be the current market price per share of the Common Stock (as
determined in accordance with subsection (d) of this Section 4.6) on the
Determination Date less the sum of the aggregate amount of cash and the
aggregate fair market value (determined as aforesaid in this Section 4.6(c)(1))
of any such other consideration so distributed, paid or payable within such 12
months (including, without 

 

29

 

limitation, the
Triggering Distribution) applicable to one share of Common Stock (determined on
the basis of the number of shares of Common Stock outstanding on the
Determination Date) and the denominator shall be such current market price per
share of the Common Stock (as determined in accordance with subsection (d) of
this Section 4.6) on the Determination Date, such reduction to become effective
immediately prior to the opening of business on the day next following the date
on which the Triggering Distribution is paid.

 

(2)           In case any tender offer made by the
Company or any of its Subsidiaries for Common Stock shall expire and such
tender offer (as amended upon the expiration thereof) shall involve the payment
of aggregate consideration in an amount (determined as the sum of the aggregate
amount of cash consideration and the aggregate fair market value (as determined
by the Board of Directors, whose determination shall be conclusive evidence
thereof and which shall be evidenced by an Officers’ Certificate delivered to
the Trustee thereof) of any other consideration) that, together with the
aggregate amount of (A) any cash and the fair market value (as determined by
the Board of Directors, whose determination shall be conclusive evidence
thereof and which shall be evidenced by an Officers’ Certificate delivered to
the Trustee) of any other consideration payable in respect of any other tender
offers by the Company or any Subsidiary of the Company for Common Stock
consummated within the 12 months preceding the date of the Expiration Date (as
defined below) and in respect of which no Conversion Price adjustment pursuant
to this Section 4.6 has been made and (B) all cash distributions to all or
substantially all holders of its Common Stock made within the 12 months
preceding the Expiration Date and in respect of which no Conversion Price
adjustment pursuant to this Section 4.6 has been made, exceeds an amount equal
to 10.0% of the product of the current market price per share of Common Stock (as
determined in accordance with subsection (d) of this Section 4.6) as of the
last date (the “Expiration Date”) tenders could have been made pursuant to such
tender offer (as it may be amended) (the last time at which such tenders could
have been made on the Expiration Date is hereinafter sometimes called the
“Expiration Time”) multiplied by the number of shares of Common Stock
outstanding (including tendered shares but excluding any shares held in the
treasury of the Company) at the Expiration Time, then, immediately prior to the
opening of business on the day after the Expiration Date, the Conversion Price
shall be reduced so that the same shall equal the price determined by
multiplying the Conversion Price in effect immediately prior to close of
business on the Expiration Date by a fraction of which the numerator shall be
the product of the number of shares of Common Stock outstanding (including
tendered shares but excluding any shares held in the treasury of the Company)
at the Expiration Time multiplied by the current market price per share of the
Common Stock (as determined in accordance with subsection (d) of this Section
4.6) on the Trading Day next succeeding the Expiration Date and the denominator
shall be the sum of (x) the aggregate consideration (determined as aforesaid)
payable to stockholders based on the acceptance (up to any maximum specified in
the terms of the tender offer) of all shares validly tendered and not withdrawn
as of the Expiration Time (the shares deemed so accepted, up to any such
maximum, being referred to as the “Purchased Shares”) and (y) the product of
the number of shares of Common Stock outstanding (less any Purchased Shares and
excluding any shares held in the treasury of the Company) at the Expiration
Time and the current market price per share of Common Stock (as determined in 

 

30

 

accordance with
subsection (d) of this Section 4.6) on the Trading Day next succeeding the
Expiration Date, such reduction to become effective immediately prior to the
opening of business on the day following the Expiration Date. In the event that
the Company is obligated to purchase shares pursuant to any such tender offer,
but the Company is permanently prevented by applicable law from effecting any
or all such purchases or any or all such purchases are rescinded, the
Conversion Price shall again be adjusted to be the Conversion Price which would
have been in effect based upon the number of shares actually purchased. If the
application of this Section 4.6(c)(2) to any tender offer would result in an
increase in the Conversion Price, no adjustment shall be made for such tender
offer under this Section 4.6(c)(2).

 

(3)           For purposes of this Section 4.6(c),
the term “tender offer” shall mean and include both tender offers and exchange
offers, all references to “purchases” of shares in tender offers (and all
similar references) shall mean and include both the purchase of shares in
tender offers and the acquisition of shares pursuant to exchange offers, and
all references to “tendered shares” (and all similar references) shall mean and
include shares tendered in both tender offers and exchange offers.

 

(d)        For
the purpose of any computation under subsections (b), (c) and (d) of this
Section 4.6, the current market price per share of Common Stock on any date
shall be deemed to be the average of the daily closing prices for the 30
consecutive Trading Days commencing 45 Trading Days before (i) the
Determination Date or the Expiration Date, as the case may be, with respect to
distributions or tender offers under subsection (c) of this Section 4.6 or (ii)
the record date with respect to distributions, issuances or other events
requiring such computation under subsection (b) or (c) of this Section 4.6. The
closing price for each day shall be the last reported sales price or, in case
no such reported sale takes place on such date, the average of the reported
closing bid and asked prices in either case on the NNM or, if the Common Stock
is not listed or admitted to trading on the NNM, on the principal national
securities exchange on which the Common Stock is listed or admitted to trading
or, if not listed or admitted to trading on the NNM or any national securities
exchange, the last reported sales price of the Common Stock as quoted on NASDAQ
or, in case no reported sales takes place, the average of the closing bid and
asked prices as quoted on NASDAQ or any comparable system or, if the Common
Stock is not quoted on NASDAQ or any comparable system, the closing sales price
or, in case no reported sale takes place, the average of the closing bid and
asked prices, as furnished by any two members of the National Association of
Securities Dealers, Inc. selected from time to time by the Company for that
purpose. If no such prices are available, the current market price per share
shall be the fair value of a share of Common Stock as determined by the Board
of Directors (which shall be evidenced by an Officers’ Certificate delivered to
the Trustee).

 

(e)        In any case in which this Section 4.6
shall require that an adjustment be made following a record date or a
Determination Date or Expiration Date, as the case may be, established for
purposes of this Section 4.6, the Company may elect to defer (but only until
five Business Days following the filing by the Company with the Trustee of the
certificate described in Section 4.9) issuing to the Holder of any Security
converted after such record date or Determination Date or Expiration Date the
shares of Common Stock and other Capital Stock of the Company issuable upon
such conversion over and above the shares of Common Stock and other Capital
Stock of the Company issuable upon such conversion only on the basis of the 

 

31

 

Conversion Price prior to adjustment; and, in lieu of the shares the
issuance of which is so deferred, the Company shall issue or cause its transfer
agents to issue due bills or other appropriate evidence prepared by the Company
of the right to receive such shares. If any distribution in respect of which an
adjustment to the Conversion Price is required to be made as of the record date
or Determination Date or Expiration Date therefor is not thereafter made or
paid by the Company for any reason, the Conversion Price shall be readjusted to
the Conversion Price which would then be in effect if such record date had not
been fixed or such effective date or Determination Date or Expiration Date had
not occurred.

 

Section 4.7      No Adjustment

 

No adjustment in the Conversion Price shall be
required unless the adjustment would require an increase or decrease of at
least 1% in the Conversion Price as last adjusted; provided, however, that any
adjustments which by reason of this Section 4.7 are not required to be made
shall be carried forward and taken into account in any subsequent adjustment.
All calculations under this Article IV shall be made to the nearest cent or to
the nearest one-hundredth of a share, as the case may be.

 

No adjustment need be made for issuances of Common
Stock pursuant to a Company plan for reinvestment of dividends or interest or
for a change in the par value or a change to no par value of the Common Stock.

 

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

 

Section 4.8      Adjustment for Tax Purposes

 

The Company shall be entitled to make such reductions
in the Conversion Price, in addition to those required by Section 4.6, as it in
its discretion shall determine to be advisable in order that any stock
dividends, subdivisions of shares, distributions of rights to purchase stock or
securities or distributions of securities convertible into or exchangeable for
stock hereafter made by the Company to its stockholders shall not be taxable.

 

Section 4.9      Notice of Adjustment

 

Whenever the Conversion Price or conversion privilege
is adjusted, the Company shall promptly mail to Securityholders a notice of the
adjustment and file with the Trustee an Officers’ Certificate briefly stating
the facts requiring the adjustment and the manner of computing it. Unless and
until the Trustee shall receive an Officers’ Certificate setting forth an
adjustment of the Conversion Price, the Trustee may assume without inquiry that
the Conversion Price has not been adjusted and that the last Conversion Price
of which it has knowledge remains in effect.

 

Section 4.10    Notice of Certain
Transactions

 

In the event that:

 

(1)        the Company takes any action which would
require an adjustment in the Conversion Price;

 

32

 

(2)        the Company consolidates or merges with,
or transfers all or substantially all of its property and assets to, another
corporation and shareholders of the Company must approve the transaction; or

 

(3)        there is a dissolution or liquidation of
the Company,

 

the Company shall mail to Holders and file with the Trustee a notice
stating the proposed record or effective date, as the case may be. The Company
shall mail the notice at least ten days before such date. Failure to mail such
notice or any defect therein shall not affect the validity of any transaction
referred to in clause (1), (2) or (3) of this Section 4.10.

 

Section 4.11    Effect of Reclassification, Consolidation, Merger or Sale on Conversion Privilege

 

If any of the following shall occur, namely: (a) any
reclassification or change of shares of Common Stock issuable upon conversion
of the 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
4.6); (b) any consolidation or merger or combination to which the Company is a
party other than a merger in which the Company is the continuing corporation
and which does not result in any reclassification of, or change (other than in
par value, or from par value to no par value, or from no par value to par
value, or as a result of a subdivision or combination) in, outstanding shares
of Common Stock; or (c) any sale or conveyance as an entirety or substantially
as an entirety of the property and assets of the Company, directly or
indirectly, to any person, then the Company, or such successor, purchasing or
transferee corporation, as the case may be, shall, as a condition precedent to
such reclassification, change, combination, consolidation, merger, sale or
conveyance, execute and deliver to the Trustee a supplemental indenture
providing that the Holder of each Security then outstanding shall have the
right to convert such Security into the kind and amount of shares of stock and
other securities and property (including cash) receivable upon such
reclassification, change, combination, consolidation, merger, sale or
conveyance by a holder of the number of shares of Common Stock deliverable upon
conversion of such Security immediately prior to such reclassification, change,
combination, consolidation, merger, sale or conveyance. Such supplemental
indenture shall provide for adjustments of the Conversion Price which shall be
as nearly equivalent as may be practicable to the adjustments of the Conversion
Price provided for in this Article IV. If, in the case of any such
consolidation, merger, combination, sale or conveyance, the stock or other
securities and property (including cash) receivable thereupon by a holder of
Common Stock include shares of stock or other securities and property of a
person other than the successor, purchasing or transferee corporation, as the
case may be, in such consolidation, merger, combination, sale or conveyance,
then such supplemental indenture shall also be executed by such other person
and shall contain such additional provisions to protect the interests of the
Holders of the Securities as the Board of Directors shall reasonably consider
necessary by reason of the foregoing. The provisions of this Section 4.11 shall
similarly apply to successive reclassifications, changes, combinations,
consolidations, mergers, sales or conveyances.

 

In the event the Company shall execute a supplemental
indenture pursuant to this Section 4.11, the Company shall promptly file with
the Trustee (x) an Officers’ Certificate briefly stating the reasons therefor,
the kind or amount of shares of stock or other securities or property 

 

33

 

(including cash) receivable by Holders of the Securities upon the
conversion of their Securities after any such reclassification, change,
combination, consolidation, merger, sale or conveyance, any adjustment to be
made with respect thereto and that all conditions precedent have been complied
with and (y) an Opinion of Counsel that all conditions precedent have been
complied with, and shall promptly mail notice thereof to all Holders.

 

Section 4.12    Trustee’s Disclaimer

 

The Trustee shall have no duty to determine when an
adjustment under this Article IV should be made, how it should be made or what
such adjustment should be, but may accept as conclusive evidence of that fact
or the correctness of any such adjustment, and shall be protected in relying
upon, an Officers’ Certificate including the Officers’ Certificate with respect
thereto which the Company is obligated to file with the Trustee pursuant to
Section 4.9. The Trustee makes no representation as to the validity or value of
any securities or assets issued upon conversion of Securities, and the Trustee
shall not be responsible for the Company’s failure to comply with any
provisions of this Article IV.

 

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

 

Section 4.13    Voluntary Reduction

 

The Company from time to time may reduce the
Conversion Price by any amount for any period of time if the period is at least
20 days and if the reduction is irrevocable during the period if the Board of
Directors determines that such reduction would be in the best interest of the
Company and the Company provides 15 days prior notice of any reduction in the
Conversion Price; provided,
however, that in no event may the Company reduce the Conversion
Price to be less than the par value of a share of Common Stock.

 

ARTICLE V

REPURCHASE
OF SECURITIES AT OPTION OF 

THE HOLDER ON SPECIFIC
DATES

Section 5.1      Optional Put

 

On December 20, 2006,
December 15, 2011 and December 15, 2016 (each, an “Optional Repurchase Date”),
each Holder shall have the right, at the Holder’s option, to require the
Company to repurchase, and upon the exercise of such right the Company shall
repurchase, all of such Holder’s Securities not theretofore called for
redemption, or any portion of the principal amount thereof that is equal to
$1,000 or an integral multiple thereof as directed by such Holder pursuant to
Section 5.3 (provided that no single Security may be repurchased in part unless
the portion of the principal amount of such Securities to be outstanding after
such repurchase is equal to $1,000 or an integral multiple thereof), at a
purchase price equal to 100% of the principal amount of the Security to be
repurchased plus accrued and unpaid interest (including 

 

34

 

Contingent Interest), if any, on such Optional
Repurchase Date (the “Optional Repurchase Price”).

 

Securities shall be repurchased by the Company
pursuant to this Section 5.1 and paragraph 7(a) of the Securities on the
Optional Repurchase Date, at the Repurchase Price, at the option of the Holder
thereof, upon:

 

(a)     delivery to the Paying Agent by the Holder
of a written notice of purchase (a “Optional Repurchase Notice”) at any time
from the opening of business on the date that is 20 Business Days prior to an
Optional Repurchase Date until the close of business on such Optional
Repurchase Date stating:

 

(1)           the certificate number of the
Security which the Holder will deliver to be repurchased,

 

(2)           the portion of the principal amount
of the Security which the Holder will deliver to be repurchased, which portion
must be $1,000 or an integral multiple thereof,

 

(3)           that such Security shall be purchased
as of the Optional Repurchase Date pursuant to the terms and conditions
specified under the paragraph 7(a) of the Securities and in this Indenture,

 

(4)           in
the event that the Company elects, pursuant to Section 5.2 hereof, to pay the
Optional Repurchase Price to be paid as of the Optional Repurchase Date
occurring on December 20, 2006, in whole or in part, in shares of Common Stock
but such portion of the Optional Repurchase Price shall ultimately be payable to
such Holder entirely in cash because any of the conditions to payment of the
Optional Repurchase Price in shares of Common Stock is not satisfied prior to
the close of business on such Optional Repurchase Date, as set forth in Section
5.3 hereof, whether such Holder elects (i) to withdraw such Optional Repurchase
Notice as to some or all of the Securities to which such Optional Repurchase
Notice relates (stating the principal amount and certificate numbers of the
Securities as to which such withdrawal shall relate), or (ii) to receive cash
in respect of the entire Optional Repurchase Price for all Securities (or
portions thereof) to which such Optional Repurchase Price relates, and

 

(b)     delivery of such Security to the Paying
Agent prior to, on or after the Optional Repurchase Date (together with all
necessary endorsements) at the offices of the Paying Agent, such delivery being
a condition to receipt by the Holder of the Optional Repurchase Price therefor;
provided, however, that such Optional Repurchase Price shall be so paid
pursuant to this Article V only if the Security so delivered to the Paying
Agent shall conform in all respects to the description thereof in the related
Optional Repurchase Notice.

 

If a Holder, in such Holder’s Optional Repurchase Notice
and in any written notice of withdrawal delivered by such Holder pursuant to
the terms of Section 5.9 hereof, fails to indicate such Holder’s choice with
respect to the election set forth in clause (4) of Section 5.1(a), such Holder
shall be deemed to have elected to receive cash in respect of the Optional
Repurchase Price for all Securities subject to the Optional Repurchase Notice
in the circumstances set forth in such clause (4).

 

35

 

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

 

Any purchase by the Company contemplated pursuant to
the provisions of this Article V shall be consummated by the delivery of the
consideration to be received by the Holder promptly following the later of the
Optional Repurchase Date and the time of delivery of the Security.

 

Notwithstanding anything herein to the contrary, any
Holder delivering to the Paying Agent the Optional Repurchase Notice
contemplated by this Section 5.1 shall have the right to withdraw such Optional
Repurchase Notice at any time prior to the close of business on the Optional
Repurchase Date by delivery of a written notice of withdrawal to the Paying
Agent in accordance with Section 5.9.

 

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

 

Section 5.2      The
Company’s Right to Elect Manner of Payment of Optional Repurchase Price on
December 20, 2006

 

The Optional Repurchase Price of Securities on
December 20, 2006, in respect of which an Optional Repurchase Notice pursuant
to Section 5.1 has been given, or a specified percentage thereof, will be paid
by the Company, at the election of the Company, with cash or shares of Common
Stock or in any combination of cash and shares of Common Stock, subject to the
conditions set forth in Section 5.2 and 5.3 hereof. The Company shall
designate, in the Company Notice delivered pursuant to Section 5.5 hereof,
whether the Company will purchase the Securities for cash or shares of Common
Stock, or, if a combination thereof, the percentages of the Optional Repurchase
Price of Securities in respect of which it will pay in cash and shares of
Common Stock; provided that the Company will pay cash for fractional interests
in shares of Common Stock. For purposes of determining the existence of
potential fractional interests, all Securities subject to purchase by the
Company held by a Holder shall be considered together (no matter how many
separate certificates are to be presented). Each Holder whose Securities are
purchased pursuant to this Article V shall receive the same percentage of cash
or shares of Common Stock in payment of the Optional Repurchase Price for such
Securities, except (i) as provided in Section 5.4 with regard to the payment of
cash in lieu of fractional shares of Common Stock and (ii) in the event that
the Company is unable to purchase the Securities of a Holder or Holders for
shares of Common Stock because any necessary qualifications or registrations of
the shares of Common Stock under applicable state securities laws cannot be
obtained, the Company may purchase the Securities of such Holder or Holders for
cash. The Company may not change its election with respect to the consideration
(or components or percentages of components thereof) to be paid once the
Company has given its Company Notice to Holders except pursuant to this Section
5.2 or pursuant to Section 5.4 in the event of a failure to satisfy, prior to
the close of business on the Optional Repurchase Date, any condition to the
payment of the Optional Repurchase Price, in whole or in part, in shares of
Common Stock.

 

36

 

At least three Business Days before the Company Notice
Date, the Company shall deliver an Officers’ Certificate to the Trustee
specifying:

 

(1)        the manner of payment selected by the
Company,

 

(2)        the information required by Section 5.5,

 

(3)        if the Company elects to pay the
Optional Repurchase Price, or a specified percentage thereof, in shares of
Common Stock, that the conditions to such manner of payment set forth in
Section 5.4 have been or will be complied with, and

 

(4)        whether the Company desires the Trustee
to give the Company Notice required by Section 5.5.

 

Section 5.3      Purchase with Cash

 

On the Optional Repurchase Date occurring on December
20, 2006, at the option of the Company, the Optional Repurchase Price of
Securities in respect of which an Optional Repurchase Notice pursuant to
Section 5.1 has been given, or a specified percentage thereof, may be paid by
the Company with cash equal to the aggregate Optional Repurchase Price of such
Securities.  If the Company elects to
purchase Securities on the Optional Repurchase Date, occurring on December 20,
2006 with cash, the Company Notice, as provided in Section 5.5, shall be sent
to Holders (and to beneficial owners as required by applicable law) not less
than 20 Business Days prior to such Optional Repurchase Date (the “Company
Notice Date”).  On the Optional
Repurchase Dates occurring on December 15, 2011 and December 15, 2016, the
Optional Repurchase Price of the Securities in respect of which an Optional
Repurchase Notice pursuant to Section 5.1 has been given must be paid in cash.

 

Section 5.4      Payment by Issuance of Shares of Common Stock on
December 20, 2006

 

On the Optional Repurchase Date occurring on December
20, 2006 only (but not on the Optional Repurchase Dates occurring on December
15, 2011 and December 15, 2016), at the option of the Company, the Optional
Repurchase Price of Securities in respect of which an Optional Repurchase
Notice pursuant to Section 5.1 has been given, or a specified percentage
thereof, may be paid by the Company by the issuance of a number of shares of
Common Stock equal to the quotient obtained by dividing (i) the amount of cash
to which the Holders would have been entitled had the Company elected to pay
all or such specified percentage, as the case may be, of the Optional
Repurchase Price of such Securities in cash by (ii) 93% of the Market Price of
a share of Common Stock, subject to the next succeeding paragraph.

 

The Company will not issue a fractional share of
Common Stock in payment of the Optional Repurchase Price. Instead the Company
will pay cash for the current market value of the fractional share. The current
market value of a fraction of a share of Common Stock shall be determined by
multiplying the Market Price by such fraction and rounding the product to the
nearest whole cent with one half cent being rounded upwards. It is understood
that if a Holder elects to have more than one Security repurchased, the number
of shares of Common Stock shall be based on the aggregate amount of Securities
to be repurchased.

 

37

 

If the Company elects to purchase the Securities by
the issuance of shares of Common Stock, the Company Notice, as provided in
Section 5.5, shall be sent to the Holders (and to beneficial owners as required
by applicable law) not later than the Company Notice Date.

 

The Company’s right to exercise its election to
purchase the Securities pursuant to this Article V through the issuance of
shares of Common Stock shall be conditioned upon:

 

(a)           the Company’s not having given its
Company Notice of an election to pay entirely in cash and its giving of timely
Company Notice of election to purchase all or a specified percentage of the
Securities with shares of Common Stock as provided herein;

 

(b)           the registration of the shares of
Common Stock to be issued in respect of the payment of the Optional Repurchase
Price under the Securities Act or the Exchange Act, in each case, if required
for the initial issuance thereof;

 

(c)           any necessary qualification or
registration under applicable state securities laws or the availability of an
exemption from such qualification and registration; and

 

(d)           the receipt by the Trustee of an
Officers’ Certificate and an Opinion of Counsel each stating that (A) the terms
of the issuance of the shares of Common Stock are in conformity with this
Indenture and (B) the shares of Common Stock to be issued by the Company in
payment of the Optional Repurchase Price in respect of Securities have been
duly authorized and, when issued and delivered pursuant to the terms of this
Indenture in payment of the Optional Repurchase Price in respect of the
Securities, will be validly issued, fully paid and non-assessable and, to the
best of such counsel’s knowledge, free from preemptive rights, and, in the case
of such Officer’s Certificate, stating that conditions (a), (b) and (c) above
and the condition set forth in the second succeeding sentence have been
satisfied and, in the case of such Opinion of Counsel, stating that conditions
(b) and (c) above have been satisfied.

 

Such Officers’ Certificate shall also set forth the
number of shares of Common Stock to be issued for each $1,000 principal amount
of Securities and the Sale Price of a share of Common Stock on each Trading Day
during the period commencing on the first Trading Day of the period during
which the Market Price is calculated and ending three Business Days prior to
the applicable Optional Repurchase Date. The Company may pay the Optional
Repurchase Price (or any portion thereof) in shares of Common Stock only if the
information necessary to calculate the Market Price is published in The Wall Street Journal or another daily
newspaper of national circulation. If the foregoing conditions are not
satisfied with respect to a Holder or Holders prior to the close of business on
the Optional Repurchase Date and the Company has elected to repurchase the
Securities pursuant to this Article V through the issuance of shares of Common
Stock, the Company shall pay, without further notice, the entire Optional
Repurchase Price of the Securities of such Holder or Holders in cash.

 

Section 5.5      Notice of Election

 

The Company’s notice of election to repurchase with
cash or shares of Common Stock or any combination thereof shall be sent to the
Holders in the manner provided in the Indenture at the time specified in
Section 5.3 or 5.4, as applicable (the “Company Notice”). Such Company Notice
shall state the manner of payment elected and shall contain the following
information:

 

38

 

In the event the Company has elected to pay the
Optional Repurchase Price (or a specified percentage thereof) with shares of
Common Stock, the Company Notice shall:

 

(a)           state that each Holder will receive
shares of Common Stock with a Market Price equal to such specified percentage
of the Optional Repurchase Price of the Securities held by such Holder (except
any cash amount to be paid in lieu of fractional shares);

 

(b)           set forth the method of calculating
the Market Price of the shares of Common Stock; and

 

(c)           state that because the Market Price
of shares of Common Stock will be determined prior to the Optional Repurchase
Date, Holders will bear the market risk with respect to the value of the shares
of Common Stock to be received from the date such Market Price is determined to
the Optional Repurchase Date.

 

In any case, each Company Notice shall include a form
of Optional Repurchase Notice to be completed by a Holder and shall state:

 

(d)           the Optional Repurchase Price and the
Conversion Rate;

 

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

 

(f)            that Securities as to which an
Optional Repurchase Notice has been given may be converted pursuant to Article
IV hereof only if the applicable Optional Repurchase Notice has been withdrawn
in accordance with the terms of this Indenture;

 

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

 

(h)           that the Optional Repurchase Price
for any Security as to which an Optional Repurchase Notice has been given and
not withdrawn will be paid promptly following the later of the Optional
Repurchase Date and the time of surrender of such Security as described in (g);

 

(i)            the procedures the Holder must
follow to exercise repurchase rights under this Article V and a brief
description of those rights;

 

(j)            briefly, the conversion rights of
the Securities; and

 

(k)           the procedures for withdrawing an
Optional Repurchase Notice (including, without limitation, for a conditional
withdrawal pursuant to the terms of Sections 5.1 or 5.9).

 

At the Company’s request, the Trustee shall give such
Company Notice in the Company’s name and at the Company’s expense; provided,
however, that, in all cases, the text of such Company Notice shall be prepared
by the Company.

 

Upon determination of the actual number of shares of
Common Stock to be issued for each $1,000 principal amount of Securities, the
Company will publish such determination at the Company’s web site on the World
Wide Web or through such other public medium as the Company may use at that
time.

 

39

 

Section 5.6      Covenants of the Company

 

All shares of Common Stock delivered upon purchase of
the Securities shall be newly issued shares or treasury shares, shall be duly
authorized, validly issued, fully paid and nonassessable and shall be free from
preemptive rights and free of any lien or adverse claim. The Company shall use
its reasonable efforts to list or cause to have quoted any shares of Common
Stock to be issued to purchase Securities on the principal national securities
exchange or over-the-counter or other domestic market on which the shares of
Common Stock are then listed or quoted.

 

Section 5.7      Procedure
upon Repurchase

 

The Company shall deposit cash (in respect of a cash
purchase under Section 5.3 or for fractional shares of Common Stock, as
applicable) or shares of Common Stock, or a combination thereof, as applicable,
at the time and in the manner as provided in Section 5.10, sufficient to pay
the aggregate Optional Repurchase Price of all Securities to be purchased on
the applicable Optional Repurchase Date pursuant to this Article V.

 

As soon as practicable after the Optional Repurchase
Date, the Company shall deliver to each Holder entitled to receive shares of
Common Stock through the Paying Agent, a certificate for the number of full shares
of Common Stock issuable in payment of the Optional Repurchase Price and cash
in lieu of any fractional shares of Common Stock. The Person in whose name the
certificate for shares of Common Stock is registered shall be treated as a
holder of record of shares of Common Stock on the Business Day next following
the Optional Repurchase Date. Subject to Section 5.4, no payment or adjustment
will be made for dividends on the shares of Common Stock the record date for
which occurred on or prior to the Optional Repurchase Date.

 

Section 5.8      Taxes

 

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

 

Section 5.9      Effect
of Optional Repurchase Notice

 

Upon receipt by the Paying Agent of the Optional
Repurchase Notice, the Holder of the Security in respect of which such Optional
Repurchase Notice was given shall (unless such Optional Repurchase Notice is
withdrawn as specified in the following two paragraphs) thereafter be entitled
to receive solely the Optional Repurchase Price with respect to such Security.
Such Optional Repurchase Price shall be paid to such Holder, subject to receipt
of funds and/or shares of Common Stock by the Paying Agent, promptly following
the later of (x) the Optional Repurchase Date with respect to such Security
(provided the conditions in Section 

 

40

 

5.1 have been satisfied) and (y) the time of delivery
of such Security to the Paying Agent by the Holder thereof in the manner
required by Section 5.1. Securities in respect of which an Optional Repurchase
Notice has been given by the Holder thereof may not be converted pursuant to
Article IV hereof on or after the date of the delivery of such Optional
Repurchase Notice unless such Optional Repurchase Notice has first been validly
withdrawn as specified in the following two paragraphs.

 

An Optional Repurchase Notice may be withdrawn by
means of a written notice of withdrawal delivered to the office of the Paying
Agent in accordance with the Optional Repurchase Notice at anytime prior to the
close of business on the applicable Optional Repurchase Date specifying:

 

(a)           the certificate number of the
Security in respect of which such notice of withdrawal is being submitted;

 

(b)           the principal amount of the Security
with respect to which such notice of withdrawal is being submitted; and

 

(c)           the principal amount, if any, of such
Security which remains subject to the original Optional Repurchase Notice and
which has been or will be delivered for purchase by the Company.

 

A written notice of withdrawal of an Optional
Repurchase Notice may be in the form set forth in the preceding paragraph or
may be in the form of (i) a conditional withdrawal contained in an Optional
Repurchase Notice pursuant to the terms of Section 5.1(a)(4) or (ii) a
conditional withdrawal containing the information set forth in Section 5.1(a)(4)
and the immediately preceding paragraph and contained in a written notice of
withdrawal delivered to the Paying Agent as set forth in the immediately
preceding paragraph.

 

There shall be no purchase of any Securities pursuant
to this Article V (other than through the issuance of shares of Common Stock in
payment of the Optional Repurchase Price, including cash in lieu of fractional
shares) 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 Optional Repurchase
Notice) and is continuing an Event of Default (other than a default in the
payment of the Optional Repurchase Price with respect to such Securities). The
Paying Agent will promptly return to the respective Holders thereof any
Securities (x) with respect to which an Optional Repurchase Notice has been
withdrawn in compliance with this Indenture, or (y) held by it during the
continuance of an Event of Default (other than a default in the payment of the
Optional Repurchase Price with respect to such Securities) in which case, upon
such return, the Optional Repurchase Notice with respect thereto shall be
deemed to have been withdrawn.

 

Section 5.10    Deposit of Optional Repurchase Price

 

Prior to 11:00 a.m., New York City time, on the
Business Day next following the Optional Repurchase Date, the Company shall
deposit with the Trustee or with the Paying Agent an amount of money (in
immediately available funds if deposited on such Business Day) and/or shares of
Common Stock, if permitted hereunder, sufficient to pay the aggregate Optional 

 

41

 

Repurchase Price of all of the Securities or portions
thereof which are to be purchased as of the Optional Repurchase Date.

 

Section 5.11    Securities Repurchased in Part

 

Any Security which is to be purchased only in part
shall be surrendered at the office of the Paying Agent (with, if the Company or
the Trustee so requires, due endorsement by, or a written instrument of
transfer in form satisfactory to the Company or 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 5.12    Comply with Securities Laws Upon Purchase of
Securities

 

In connection with any offer to purchase or purchase
of Securities under this Article V (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 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 Article V to be exercised in the time and in the manner
specified in this Article V.

 

Section 5.13    Repayment to the Company

 

The Trustee and the Paying Agent shall return to the
Company any cash or shares of Common Stock that remain unclaimed for two years,
subject to applicable unclaimed property law, together with interest or
dividends, if any, thereon held by them for the payment of the Optional
Repurchase Price; provided,
however, that to the extent that the aggregate amount of cash or
shares of Common Stock deposited by the Company pursuant to Section 5.10
exceeds the aggregate Optional Repurchase Price of the Securities or portions
thereof which the Company is obligated to purchase as of the Optional
Repurchase Date, then promptly after the Business Day next following the
Optional Repurchase Date the Trustee shall return any such excess to the Company
together with interest or dividends, if any, thereon. After that, Holders
entitled to money must look to the Company for payment as general creditors,
unless an applicable abandoned property law designates another Person.

 

Section 5.14    Conversion Arrangement on Repurchase

 

Any Securities required to be repurchased under this
Article V, unless surrendered for conversion before the close of business on
the Optional Repurchase Date, may be deemed to be purchased from the Holders of
such Securities for an amount in cash not less than the Optional Repurchase
Price, by one or more investment bankers or other purchasers who may agree with
the Company to purchase such Securities from the Holders, to convert them into
shares of Common Stock of the Company and to make payment for such Securities
to the Trustee in trust for such Holders.

 

42

 

ARTICLE VI

COVENANTS

 

Section 6.1      Payment
of Securities

 

The Company shall promptly make all payments in
respect of the Securities on the dates and in the manner provided in the
Securities and this Indenture. An installment of principal or interest
(including Contingent Interest) shall be considered paid on the date it is due
if the Paying Agent (other than the Company) holds by 11:00 a.m., New York City
time, on that date money, deposited by the Company or an Affiliate thereof,
sufficient to pay the installment. The Company shall, to the fullest extent
permitted by law, pay interest on overdue principal (including premium, if any)
and overdue installments of interest (including Contingent Interest) at the
rate borne by the Securities per annum. 
All references in this Indenture or the Securities to interest shall be
deemed to include Liquidated Damages, if any, payable pursuant to the
Registration Rights Agreement.

 

Payment of the principal of (and premium, if any) and
any interest (including Contingent Interest) on the Securities shall be made at
the Corporate Trust Office of the Paying Agent specified in Section 2.3 in such
coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts; provided, however, that at the
option of the Company payment of interest may be made by check mailed to the
address of the Person entitled thereto as such address appears in the Register;
provided further that a Holder with an aggregate principal amount in excess of
$2,000,000 will be paid by wire transfer in immediately available funds at the
election of such Holder.

 

Section
6.2      SEC
Reports

 

The Company shall file all reports and other
information and documents which it is required to file with the SEC pursuant to
Section 13 or 15(d) of the Exchange Act, and within 15 days after it files them
with the SEC, the Company shall file copies of all such reports, information
and other documents with the Trustee.

 

Delivery of such reports, information and documents to
the Trustee is for informational purposes only and the Trustee’s receipt of
such shall not constitute constructive notice of any information contained
therein or determinable from information contained therein, including the
Company’s compliance with any of its covenants hereunder (as to which the
Trustee is entitled to rely exclusively on Officers’ Certificates).

 

Section 6.3      Compliance Certificates

 

The Company shall deliver to the Trustee, within 90
days after the end of each fiscal year of the Company (beginning with the
fiscal year ending December 31, 2002), an Officers’ Certificate as to the
signer’s knowledge of the Company’s compliance with all conditions and
covenants on its part contained in this Indenture and stating whether or not
the signer knows of any default or Event of Default. If such signer knows of
such a default or Event of Default, the Officers’ Certificate shall describe
the default or Event of Default and the efforts to remedy the same. For the
purposes of this Section 6.3, compliance shall be determined without regard to
any grace period or requirement of notice provided pursuant to the terms of
this Indenture.

 

43

 

Section 6.4      Further Instruments and Acts

 

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

 

Section 6.5      Maintenance of Corporate Existence

 

Subject to Article VII, the Company will do or cause
to be done all things necessary to preserve and keep in full force and effect
its corporate existence.

 

Section 6.6      Rule 144A Information Requirement

 

Within the period prior to the expiration of the
holding period applicable to sales of Restricted Securities 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 and it will
take such further action as any Holder or beneficial holder of such Securities
or such Common Stock may reasonably request, all to the extent required from
time to time to enable such Holder or beneficial holder to sell its Securities
or Common Stock without registration under the Securities Act within the
limitation of the exemption provided by Rule 144A, as such Rule may be amended
from time to time. Upon the request of any Holder or any beneficial holder of
the Securities or such Common Stock, the Company will deliver to such Holder a
written statement as to whether it has complied with such requirements.

 

Section
6.7      Stay, Extension and Usury Laws

 

The Company covenants (to the extent that it may
lawfully do so) that it shall not at any time insist upon, plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay,
extension or usury law or other law which would prohibit or forgive the Company
from paying all or any portion of the principal of, premium, if any, or
interest (including Liquidated Damages, 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 it may lawfully do so) hereby expressly waives all
benefit or advantage of any such law, and covenants that it will not, by resort
to any such law, hinder, delay or impede the execution of any power herein
granted to the Trustee, but will suffer and permit the execution of every such
power as though no such law had been enacted.

 

Section
6.8      Payment
of Liquidated Damages

 

If Liquidated Damages are payable by the Company
pursuant to the Registration Rights Agreement, the Company shall deliver to the
Trustee a certificate to that effect stating (i) the amount of such Liquidated
Damages that is payable and (ii) the date on which such Liquidated 

 

44

 

Damages are payable. Unless and until a Trust Officer of the Trustee
actually receives such a certificate, the Trustee may assume without inquiry
that no such Liquidated Damages are payable. If the Company has paid Liquidated
Damages directly to the Persons entitled to it, the Company shall deliver to
the Trustee a certificate setting forth the particulars of such payment.

 

Section 6.9      Resale of Certain Securities

 

During the period of two years after the last date of
original issuance of any Securities, the Company shall not, and shall not
permit any of its “affiliates” (as defined under Rule 144 under the Securities
Act) to, resell any Securities, or shares of Common Stock issuable upon
conversion of the Securities, which constitute “restricted securities” under
Rule 144, that are acquired by any of them within the United States or to “U.S.
persons” (as defined in Regulation S) except pursuant to an effective
registration statement under the Securities Act or an applicable exemption therefrom.
The Trustee shall have no responsibility or liability in respect of the
Company’s performance of its agreement in the preceding sentence.

 

Section 6.10    Tax Treatment of Securities

 

The Company agrees, and by acceptance of beneficial
ownership interest in the Securities each beneficial holder of Securities will
be deemed to have agreed, for United States federal income tax purposes (1) to
treat the Securities as indebtedness that is subject to Treas. Reg. Sec.
1.1275-4 (the “Contingent Payment Regulations”) and, for purposes of the Contingent
Payment Regulations, to treat the fair market value of any stock beneficially
received by a beneficial holder upon any conversion of the Securities as a
contingent payment and (2) to be bound by the Company’s determination of the
“comparable yield” and “projected payment schedule,” within the meaning of the
Contingent Payment Regulations, with respect to the Securities. A Holder of
Securities may obtain the amount of original issue discount, issue date, yield
to maturity, comparable yield and projected payment schedule by submitting a
written request for it to the Company at the following address: Evergreen
Resources, Inc., 1401 17th Street, Suite 1200, Denver, Colorado 80202,
Attention: Chief Financial Officer.

 

ARTICLE VII

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

 

Section 7.1      Company May Consolidate, Etc. Only on Certain Terms.

 

The Company shall not consolidate with or merge into
any other Person (in a transaction in which the Company is not the surviving
corporation) or convey, transfer or lease its properties and assets
substantially as an entirety to any Person, unless:

 

(1)        in
case the Company shall consolidate with or merge into another Person (in a
transaction in which the Company is not the surviving corporation) or convey,
transfer or lease its properties and assets substantially as an entirety to any
Person, the Person formed by such consolidation or into which the Company is
merged or the Person which acquires by conveyance or transfer, or which leases,
the properties and assets of the Company substantially as an entirety shall be
a corporation, limited liability company, partnership or trust, shall be
organized and validly existing under the laws of the United States of America,
any State thereof or the District of Columbia and shall expressly assume, by an
indenture supplemental hereto, executed and 

 

45

 

delivered to the Trustee, in form satisfactory to the Trustee, the due
and punctual payment of the principal of and any premium and interest
(including Contingent Interest) on all the Securities and the performance or
observance of every covenant of this Indenture on the part of the Company to be
performed or observed and the conversion rights shall be provided for in
accordance with Article IV, by supplemental indenture satisfactory in form to
the Trustee, executed and delivered to the Trustee, by the Person (if other
than the Company) formed by such consolidation or into which the Company shall
have been merged or by the Person which shall have acquired the Company’s
assets;

 

(2)        immediately
after giving effect to such transaction, no Event of Default, and no event
which, after notice or lapse of time or both, would become an Event of Default,
shall have happened and be continuing; and

 

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

 

Section 7.2      Successor Substituted

 

Upon any consolidation of the Company with, or merger
of the Company into, any other Person or any conveyance, transfer or lease of
the properties and assets of the Company substantially as an entirety in
accordance with Section 7.1, the successor Person formed by such consolidation
or into which the Company is merged or to which such conveyance, transfer or
lease is made shall succeed to, and be substituted for, and may exercise every
right and power of, the Company under this Indenture with the same effect as if
such successor Person had been named as the Company herein, and thereafter,
except in the case of a lease, the predecessor Person shall be relieved of all
obligations and covenants under this Indenture and the Securities.

 

ARTICLE VIII

DEFAULT AND REMEDIES

 

Section 8.1      Events
of Default

 

An “Event of Default” shall occur if:

 

(1)        the
Company defaults in the payment of any interest (including Contingent Interest)
on any Security when the same becomes due and payable and the default continues
for a period of 30 days;

 

(2)        the
Company defaults in the payment of any principal of (including, without
limitation, any premium, if any, on) any Security when the same becomes due and
payable (whether at maturity, upon redemption, on an Optional Repurchase Date,
a Change in Control Purchase Date or otherwise);

 

46

 

(3)        the Company fails to comply with any of
its other agreements contained in the Securities or this Indenture and the
default continues for the period and after the notice specified below;

 

(4)        a default under any mortgage, indenture
or instrument under which there may be issued or by which there may be secured
or evidenced any Indebtedness of the Company or any of its Subsidiaries whether
such Indebtedness now exists, or is created after the date of this Indenture,
which default (a) involves the failure to pay principal of or any premium or
interest on such Indebtedness when such Indebtedness becomes due and payable at
the stated maturity thereof, and such default shall continue after any
applicable grace period or (b) results in the acceleration of such Indebtedness
unpaid prior to the stated maturity thereof and, in the case of (a) or (b), the
principal amount of such Indebtedness, together with the principal amount of any
other Indebtedness so unpaid at its stated maturity or the stated maturity of
which has been so accelerated, aggregates $10 million or more;

 

(5)        failure by the Company or any of its
Subsidiaries to pay final judgments aggregating in excess of $10 million, which
judgments are not paid, discharged or stayed for a period of 60 days;

 

(6)        the
Company pursuant to or within the meaning of any Bankruptcy Law:

 

(i)            commences a voluntary case or
proceeding;

 

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

 

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

 

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

 

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

 

(i)            is for relief against the Company in
an involuntary case or proceeding;

 

(ii)           appoints a Custodian of the Company
or for all or substantially all of the property of the Company; or

 

(iii)          orders the liquidation of the Company;

 

and in each case the order or decree remains unstayed
and in effect for 60 days.

 

The term “Bankruptcy Law” means Title 11 of the United
States Code (or any successor thereto) or any similar federal or state law for
the relief of debtors. The term “Custodian” means 

 

47

 

any receiver, trustee, assignee, liquidator, sequestrator or similar
official under any Bankruptcy Law.

 

A default under clause (3) above is not an Event of
Default until the Trustee notifies the Company, or the Holders of at least 25%
in aggregate principal amount of the Securities then outstanding notify the
Company and the Trustee, of the default, and the Company does not cure the
default within 60 days after receipt of such notice. The notice given pursuant
to this Section 8.1 must specify the default, demand that it be remedied and
state that the notice is a “Notice of Default.” When any default under this
Section 8.1 is cured, it ceases.

 

The Trustee shall not be charged with knowledge of any
Event of Default unless written notice thereof shall have been given to a Trust
Officer at the Corporate Trust Office of the Trustee by the Company, a Paying
Agent, any Holder or any agent of any Holder.

 

Section 8.2      Acceleration

 

If an Event of Default (other than an Event of Default
specified in clauses (6) or (7) of Section 8.1) occurs and is continuing, the
Trustee may, by notice to the Company, or the Holders of at least 25% in
aggregate principal amount of the Securities then outstanding may, by notice to
the Company and the Trustee, declare all unpaid principal on the Securities
then outstanding (if not then due and payable) to be due and payable upon any
such declaration, and the same shall become and be immediately due and payable.
If an Event of Default specified in clauses (6) or (7) of Section 8.1 occurs,
all unpaid principal of the Securities then outstanding shall ipso facto become
and be immediately due and payable without any declaration or other act on the
part of the Trustee or any Holder. The Holders of a majority in aggregate
principal amount of the Securities then outstanding by notice to the Trustee
may rescind an acceleration and its consequences if (a) all existing Events of
Default, other than the nonpayment of the principal of the Securities which has
become due solely by such declaration of acceleration, have been cured or
waived; (b) to the extent the payment of such interest is lawful, interest
(calculated at the rate per annum borne by the Securities) on overdue
installments of interest and overdue principal, which has become due otherwise
than by such declaration of acceleration, has been paid; (c) the rescission
would not conflict with any judgment or decree of a court of competent jurisdiction;
and (d) all payments due to the Trustee and any predecessor Trustee under
Section 9.7 have been made. No such rescission shall affect any subsequent
default or impair any right consequent thereto.

 

Section 8.3      Other Remedies

 

If an Event of Default occurs and is continuing, the
Trustee may, but shall not be obligated to, pursue any available remedy by
proceeding at law or in equity to collect the payment of the principal of or
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 it does
not possess any of the Securities or does not produce any of them in the
proceeding. A delay or omission by the Trustee or any Securityholder in
exercising any right or remedy accruing upon an Event of Default shall not
impair the right or remedy or constitute a waiver of or acquiescence in the
Event of Default. No 

 

48

 

remedy is exclusive of any other remedy. All available remedies are
cumulative to the extent permitted by law.

 

Section 8.4      Waiver of Defaults and Events of Default

 

Subject to Sections 8.7 and 11.2, the Holders of a
majority in principal amount of the Securities then outstanding by notice to
the Trustee may waive an existing default or Event of Default and its
consequence, except a default or Event of Default in the payment of the
principal of or interest on any Security, a failure by the Company to convert
any Securities into Common Stock or any default or Event of Default in respect
of any provision of this Indenture or the Securities which, under Section 11.2,
cannot be modified or amended without the consent of the Holder of each
Security affected. When a default or Event of Default is waived, it is cured
and ceases.

 

Section 8.5      Control By Majority

 

The Holders of a majority in principal amount of the
Securities then outstanding may direct the time, method and place of conducting
any proceeding for any remedy available to the Trustee or exercising any trust
or power conferred on it. However, the Trustee may refuse to follow any
direction that conflicts with law or this Indenture, that the Trustee
determines may be unduly prejudicial to the rights of another Holder or the
Trustee, or that may involve the Trustee in personal liability unless the
Trustee is furnished indemnity satisfactory to it; provided, however, that the
Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction.

 

Section 8.6      Limitations on Suits

 

A Holder may not pursue any remedy with respect to
this Indenture or the Securities (except actions for payment of overdue
principal or interest (including Contingent Interest) or for the conversion of
the Securities pursuant to Article IV) unless:

 

(1)           the Holder gives to the Trustee
written notice of a continuing Event of Default;

 

(2)           the Holders of at least 25% in
principal amount of the then outstanding Securities make a written request to
the Trustee to pursue the remedy;

 

(3)           such Holder or Holders furnishes to
the Trustee reasonable indemnity to the Trustee against any loss, liability or
expense;

 

(4)           the Trustee does not comply with the
request within 60 days after receipt of the request and the furnishing of
indemnity; and

 

(5)           no direction inconsistent with such
written request has been given to the Trustee during such 60-day period by the
Holders of a majority in principal amount of the Securities then outstanding.

 

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

 

49

 

Section 8.7      Rights of Holders to Receive Payment and to Convert

 

Notwithstanding any other provision of this Indenture,
the right of any Holder of a Security to receive payment of the principal of
and interest on the Security, on or after the respective due dates expressed in
the Security and this Indenture, to convert such Security in accordance with
Article IV and to bring suit for the enforcement of any such payment on or
after such respective dates or the right to convert, is absolute and
unconditional and shall not be impaired or affected without the consent of the
Holder.

 

Section 8.8      Collection Suit By Trustee

 

If an Event of Default in the payment of principal or
interest (including Contingent Interest) specified in clauses (1) or (2) of
Section 8.1 occurs and is continuing, the Trustee may recover judgment in its
own name and as trustee of an express trust against the Company or another
obligor on the Securities for the whole amount of principal and accrued
interest remaining unpaid, together with, to the extent that payment of such
interest is lawful, interest on overdue principal and on overdue installments
of interest (including Contingent Interest), in each case at the rate per annum
borne by the Securities and such further amount as shall be sufficient to cover
the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

 

Section 8.9      Trustee May File Proofs of Claim

 

The Trustee may file such proofs of claim and other
papers or documents as may be necessary or advisable in order to have the
claims of the Trustee (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel)
and the Holders allowed in any judicial proceedings relative to the Company (or
any other obligor on the Securities), its creditors or its property and shall
be entitled and empowered to collect and receive any money or other property
payable or deliverable on any such claims and to distribute the same, and any
Custodian in any such judicial proceeding is hereby authorized by each Holder
to make such payments to the Trustee and, in the event that the Trustee shall
consent to the making of such payments directly to the Holders, to pay to the
Trustee any amount due to it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee under Section 9.7, and to the extent that such
payment of the reasonable compensation, expenses, disbursements and advances in
any such proceedings shall be denied for any reason, payment of the same shall
be secured by a lien on, and shall be paid out of, any and all distributions,
dividends, money, securities and other property which the Holders may be
entitled to receive in such proceedings, whether in liquidation or under any
plan of reorganization or arrangement or otherwise. Nothing herein contained
shall be deemed to authorize the Trustee to authorize or consent to, or on
behalf of any Holder, to authorize, accept or adopt any plan of reorganization,
arrangement, adjustment or composition affecting the Securities or the rights
of any Holder thereof, or to authorize the Trustee to vote in respect of the
claim of any Holder in any such proceeding.

 

50

 

Section 8.10    Priorities

 

If the Trustee collects any money pursuant to this
Article VIII, it shall pay out the money in the following order:

 

First, to the Trustee for amounts due under Section 9.7;

 

Second, to Holders for amounts due and unpaid on the
Securities for principal and interest, ratably, without preference or priority
of any kind, according to the amounts due and payable on the Securities for
principal and interest, respectively; and

 

Third, to the Company.

 

The Trustee may fix a record date and payment date for
any payment to Holders pursuant to this Section 8.10.

 

Section 8.11    Undertaking for Costs

 

In any suit for the enforcement of any right or remedy
under this Indenture or in any suit against the Trustee for any action taken or
omitted by it as Trustee, a court in its discretion may require the filing by
any party litigant in the suit of an undertaking to pay the costs of the suit,
and the court in its discretion may assess reasonable costs, including
reasonable attorneys’ fees and expenses, against any party litigant in the
suit, having due regard to the merits and good faith of the claims or defenses
made by the party litigant. This Section 8.11 does not apply to a suit made by
the Trustee, a suit by a Holder pursuant to Section 8.7, or a suit by Holders of
more than 10% in principal amount of the Securities then outstanding.

 

ARTICLE IX

TRUSTEE

 

Section 9.1      Duties
of Trustee

 

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

 

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

 

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

 

(2)           in the absence of bad faith on its
part, the Trustee may conclusively rely, as to the truth of the statements and
the correctness of the opinions expressed therein, upon certificates or
opinions furnished to the Trustee and conforming to the requirements of this
Indenture. The Trustee, however, shall examine any certificates and opinions
which by any provision hereof are specifically required to be delivered to the
Trustee to determine whether or not they conform to the requirements of this
Indenture.

 

51

 

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

 

(1)           this paragraph does not limit the
effect of subsection (b) of this Section 9.1;

 

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

 

(3)           the Trustee shall not be liable with
respect to any action it takes or omits to take in good faith in accordance
with a direction received by it pursuant to Section 8.5.

 

(d)              No provision of this Indenture
shall require the Trustee to expend or risk its own funds or otherwise incur
any financial liability in the performance of any of its duties hereunder or in
the exercise of any of its rights or powers unless the Trustee shall have
received adequate indemnity in its opinion against potential costs and
liabilities incurred by it relating thereto.

 

(e)               Every provision of this Indenture
that in any way relates to the Trustee is subject to subsections (a), (b), (c)
and (d) of this Section 9.1.

 

(f)               The Trustee shall not be liable
for interest on any money received by it except as the Trustee may agree in
writing with the Company. Money held in trust by the Trustee need not be
segregated from other funds except to the extent required by applicable law.

 

Section 9.2      Rights of Trustee

 

Subject to Section 9.1:

 

(a)           The Trustee may rely conclusively on
any document believed by it to be genuine and to have been signed or presented
by the proper person. The Trustee need not investigate any fact or matter
stated in the document.

 

(b)           Before the Trustee acts or refrains
from acting, it may require an Officers’ Certificate or an Opinion of Counsel,
which shall conform to Section 13.4(b). The Trustee shall not be liable for any
action it takes or omits to take in good faith in reliance on such Certificate
or Opinion.

 

(c)           The Trustee may act through its
agents and shall not be responsible for the misconduct or negligence of any
agent appointed with due care.

 

(d)           The Trustee shall not be liable for
any action it takes or omits to take in good faith which it believes to be
authorized or within its rights or powers.

 

(e)           The Trustee may consult with counsel
of its selection, and the advice or opinion of such counsel as to matters of
law shall be full and complete authorization and protection in respect of any
such action taken, omitted or suffered by it hereunder in good faith and in
accordance with the advice or opinion of such counsel.

 

52

 

(f)            The Trustee shall be under no
obligation to exercise any of the rights or powers vested in it by this
Indenture at the request or direction of any of the Holders pursuant to this
Indenture, unless such Holders shall have furnished to the Trustee security or
indemnity satisfactory to the Trustee against the costs, expenses and
liabilities which might be incurred by it in compliance with such request or
direction.

 

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

 

(h)           The Trustee shall not be deemed to
have notice of any Default or Event of Default unless a Trust Officer of the
Trustee has actual knowledge thereof or unless written notice from the Company
or the Holders of at least 25% of the Securities of any event which is in fact
such a default is received by the Trustee at the Corporate Trust Office, and
such notice references the Securities and this Indenture.

 

(i)            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 to each agent, custodian and
other Person employed by it to act hereunder.

 

Section 9.3      Individual Rights of Trustee

 

The Trustee in its individual or any other capacity
may become the owner or pledgee of Securities and may otherwise deal with the
Company or an Affiliate of the Company with the same rights it would have if it
were not Trustee. Any Agent may do the same with like rights. However, the
Trustee is subject to Sections 9.10 and 9.11.

 

Section 9.4      Trustee’s
Disclaimer

 

The Trustee makes no representation as to the validity
or adequacy of this Indenture or the Securities, it shall not be accountable
for the Company’s use of the proceeds from the Securities, and it shall not be
responsible for any statement in the Indenture or the Securities other than its
certificate of authentication.

 

Section 9.5      Notice of Default or Events of Default

 

If a default or an Event of Default occurs and is
continuing and if it is known to the Trustee, the Trustee shall mail to each
Securityholder notice of the default or Event of Default within 90 days after
it occurs. However, the Trustee may withhold the notice if and so long as a
committee of its Trust Officers in good faith determines that withholding
notice is in the interests of Securityholders, except in the case of a default
or an Event of Default in payment of the principal of or interest on any
Security.

 

53

 

Section 9.6      Reports By Trustee To Holders

 

If such report is required by TIA Section 313, within
60 days after each May 15, beginning with the May 15 following the date of this
Indenture, the Trustee shall mail to each Securityholder a brief report dated
as of such May 15 that complies with TIA Section 313(a). The Trustee also
shall comply with TIA Section 313(b)(2) and (c).

 

A copy of each report at the time of its mailing to
Securityholders shall be mailed to the Company and filed with the SEC and each
stock exchange, if any, on which the Securities are listed. The Company
promptly shall notify the Trustee whenever the Securities become listed on any
stock exchange or listed or admitted to trading on any quotation system and any
changes in the stock exchanges or quotation systems on which the Securities are
listed or admitted to trading and of any delisting thereof.

 

Section 9.7      Compensation and Indemnity

 

The Company shall pay to the Trustee from time to time
such compensation (as agreed to from time to time by the Company and the
Trustee in writing) for its services (which compensation shall not be limited
by any provision of law in regard to the compensation of a trustee of an
express trust). The Company shall reimburse the Trustee upon request for all
reasonable, actual disbursements, expenses and advances incurred or made by it.
Such expenses may include the reasonable, actual compensation, disbursements
and expenses of the Trustee’s agents and counsel.

 

The Company shall indemnify the Trustee or any
predecessor Trustee (which for purposes of this Section 9.7 shall include its
officers, directors, employees and agents) for, and hold it harmless against,
any and all loss, liability or expense including taxes (other than taxes based
upon, measured by or determined by the income of the Trustee), (including
reasonable legal fees and expenses) incurred by it in connection with the
acceptance or administration of its duties under this Indenture or any action
or failure to act as authorized or within the discretion or rights or powers
conferred upon the Trustee hereunder including the reasonable costs and
expenses of the Trustee and its counsel in defending itself against any claim
or liability in connection with the exercise or performance of any of its
powers or duties hereunder. The Trustee shall notify the Company promptly of
any claim asserted against the Trustee for which it may seek indemnity. The
Company need not pay for any settlement without its written consent, which
shall not be unreasonably withheld.

 

The Company need not reimburse the Trustee for any
expense or indemnify it against any loss or liability incurred by it resulting
from its gross negligence or bad faith.

 

To secure the Company’s payment obligations in this
Section 9.7, the Trustee shall have a senior claim to which the Securities are
hereby made subordinate on all money or property held or collected by the
Trustee, except such money or property held in trust to pay the principal of
and interest on the Securities. The obligations of the Company under this
Section 9.7 shall survive the satisfaction and discharge of this Indenture or
the resignation or removal of the Trustee.

 

54

 

When the Trustee incurs expenses or renders services
after an Event of Default specified in clauses (6) or (7) of Section 8.1 occurs,
the expenses and the compensation for the services are intended to constitute
expenses of administration under any Bankruptcy Law. The provisions of this
Section shall survive the termination of this Indenture.

 

Section 9.8      Replacement of Trustee

 

The Trustee may resign by so notifying the Company.
The Holders of a majority in principal amount of the Securities then
outstanding may remove the Trustee by so notifying the Trustee and may, with
the Company’s written consent, appoint a successor Trustee. The Company may
remove the Trustee if:

 

(1)               the Trustee fails to comply with
Section 9.10;

 

(2)               the Trustee is adjudged a
bankrupt or an insolvent;

 

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

 

(4)               the Trustee becomes incapable of
acting.

 

If the Trustee resigns or is removed or if a vacancy
exists in the office of Trustee for any reason, the Company shall promptly
appoint a successor Trustee. The resignation or removal of a Trustee shall not
be effective until a successor Trustee shall have delivered the written
acceptance of its appointment as described below.

 

If a successor Trustee does not take office within 45
days after the retiring Trustee resigns or is removed, the retiring Trustee,
the Company or the Holders of 10% in principal amount of the Securities then
outstanding may petition any court of competent jurisdiction for the
appointment of a successor Trustee at the expense of the Company.

 

If the Trustee fails to comply with Section 9.10, any
Holder may petition any court of competent jurisdiction for the removal of the
Trustee and the appointment of a successor Trustee.

 

A successor Trustee shall deliver a written acceptance
of its appointment to the retiring Trustee and to the Company. Immediately
after that, the retiring Trustee shall transfer all property held by it as
Trustee to the successor Trustee and be released from its obligations
(exclusive of any liabilities that the retiring Trustee may have incurred while
acting as Trustee) hereunder, the resignation or removal of the retiring
Trustee shall become effective, and the successor Trustee shall have all the
rights, powers and duties of the Trustee under this Indenture. A successor
Trustee shall mail notice of its succession to each Holder.

 

A retiring Trustee shall not be liable for the acts or
omissions of any successor Trustee after its succession.

 

Notwithstanding replacement of the Trustee pursuant to
this Section 9.8, the Company’s obligations under Section 9.7 shall continue
for the benefit of the retiring Trustee.

 

55

 

Section 9.9      Successor Trustee By Merger, Etc

 

If the Trustee consolidates with, merges or converts
into, or transfers all or substantially all of its corporate trust assets
(including the administration of this Indenture) to, another corporation, the
resulting, surviving or transferee corporation, without any further act, shall
be the successor Trustee, provided such transferee corporation shall qualify
and be eligible under Section 9.10. Such successor Trustee shall promptly mail
notice of its succession to the Company and each Holder.

 

Section 9.10    Eligibility; Disqualification

 

The Trustee shall always satisfy the requirements of
paragraphs (1), (2) and (5) of TIA Section 310(a). The Trustee (or its parent
holding company) shall have a combined capital and surplus of at least
$50,000,000. If at any time the Trustee shall cease to satisfy any such
requirements, it shall resign immediately in the manner and with the effect
specified in this Article IX. The Trustee shall be subject to the provisions of
TIA Section 310(b). Nothing herein shall prevent the Trustee from filing with
the SEC the application referred to in the penultimate paragraph of TIA Section
310(b).

 

Section 9.11    Preferential Collection of Claims Against Company

 

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

 

ARTICLE X

SATISFACTION AND DISCHARGE OF INDENTURE

 

Section 10.1    Satisfaction
and Discharge of Indenture

 

This Indenture shall cease to be of further effect
(except as to any surviving rights of conversion, registration of transfer or
exchange of Securities herein expressly provided for and except as further
provided below), and the Trustee, on demand of and at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture, when

 

(1)        either

 

(i)            all Securities theretofore
authenticated and delivered (other than (i) Securities which have been
destroyed, lost or stolen and which have been replaced or paid as provided in
Section 2.7 and (ii) Securities for whose payment money has theretofore been
deposited in trust and thereafter repaid to the Company as provided in Section
10.3) have been delivered to the Trustee for cancellation; or

 

(ii)           all
such Securities not theretofore delivered to the Trustee for cancellation

 

56

 

(a)       have become due and payable, or

 

(b)       will become due and payable at the Final
Maturity Date within one year, or

 

(c)       are to be called for redemption within
one year under arrangements satisfactory to the Trustee for the giving of
notice of redemption by the Trustee in the name, and at the expense, of the
Company,

 

and the Company, in the case of clause (a), (b) or (c)
above, has irrevocably deposited or caused to be irrevocably deposited with the
Trustee or a Paying Agent (other than the Company or any of its Affiliates) as
trust funds in trust for the purpose cash in an amount sufficient to pay and
discharge the entire indebtedness on such Securities not theretofore delivered
to the Trustee for cancellation, for principal and interest to the date of such
deposit (in the case of Securities which have become due and payable) or to the
Final Maturity Date or Redemption Date, as the case may be;

 

(2)        the Company has paid or caused to be
paid all other sums payable hereunder by the Company; and

 

(3)        the
Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for
relating to the satisfaction and discharge of this Indenture have been complied
with.

 

Notwithstanding the
satisfaction and discharge of this Indenture, the obligations of the Company to
the Trustee under Section 9.7 shall survive and, if money shall have been
deposited with the Trustee pursuant to clause (1)(ii) of this Section, the
provisions of Sections 2.3, 2.4, 2.5, 2.6, 2.7, 2.12, Article IV, Article V,
the last paragraph of Section 6.2, this Article X, Article XII and Section
13.5, shall survive until the Securities have been paid in full.

 

Section 10.2    Application of Trust Money

 

Subject to the
provisions of Section 10.3, the Trustee or a Paying Agent shall hold in trust,
for the benefit of the Holders, all money deposited with it pursuant to Section
10.1 and shall apply the deposited money in accordance with this Indenture and
the Securities to the payment of the principal of and interest on the
Securities.

 

Section 10.3    Repayment To Company

 

The Trustee and
each Paying Agent shall promptly pay to the Company upon request any excess
money (i) deposited with them pursuant to Section 10.1 and (ii) held by them at
any time.

 

The Trustee and
each Paying Agent shall pay to the Company upon request any money held by them
for the payment of principal or interest that remains unclaimed for two years
after a right to such money has matured; provided, however, that the
Trustee or such Paying Agent, before being required to make any such payment,
may at the expense of the Company cause to

 

57

 

be mailed to each
Holder entitled to such money notice that such money remains unclaimed and that
after a date specified therein, which shall be at least 30 days from the date
of such mailing, any unclaimed balance of such money then remaining will be
repaid to the Company. After payment to the Company, Holders entitled to money
must look to the Company for payment as general creditors.

 

Section 10.4    Reinstatement

 

If the Trustee or
any Paying Agent is unable to apply any money in accordance with Section 10.2
by reason of any legal proceeding or by reason of any order or judgment of any
court or governmental authority enjoining, restraining or otherwise prohibiting
such application, then the Company’s obligations under this Indenture and the
Securities shall be revived and reinstated as though no deposit had occurred
pursuant to Section 10.1 until such time as the Trustee or such Paying Agent is
permitted to apply all such money in accordance with Section 10.2; provided, however,
that if the Company has made any payment of the principal of or interest on any
Securities because of the reinstatement of its obligations, the Company shall
be subrogated to the rights of the Holders of such Securities to receive any
such payment from the money held by the Trustee or such Paying Agent.

 

ARTICLE XI

AMENDMENTS, SUPPLEMENTS AND WAIVERS

 

Section 11.1    Without
Consent of Holders

 

The Company and
the Trustee may amend or supplement this Indenture or the Securities without
notice to or consent of any Securityholder:

 

(a)        to comply with Sections 4.11 and 7.1;

 

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

 

(c)        to make any other change that does not
adversely effect the rights of any Securityholder;

 

(d)        to comply with the provisions of the
TIA; or

 

(e)        to appoint a successor Trustee.

 

Section 11.2    With Consent of Holders

 

The Company and
the Trustee may amend or supplement this Indenture or the Securities with the
written consent of the Holders of at least a majority in aggregate principal
amount of the Securities then outstanding. The Holders of at least a majority
in aggregate principal amount of the Securities then outstanding may waive
compliance in a particular instance by the Company with any provision of this
Indenture or the Securities without notice to any Securityholder. However,
notwithstanding the foregoing but subject to Section 11.4, without the written
consent of each Securityholder affected, an amendment, supplement or waiver,
including a waiver pursuant to Section 8.4, may not:

 

58

 

(a)        extend the Maturity of the principal of,
or interest (including Contingent Interest) on, any Security;

 

(b)        reduce the principal amount of, or any
premium or interest (including Contingent Interest) on, any Security;

 

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

 

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

 

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

 

(f)         adversely affect the right of Holders
to convert Securities other than as provided in or under Article IV of this
Indenture;

 

(g)        reduce the percentage of the aggregate
principal amount of the outstanding Securities whose Holders must consent to a
supplement or amendment;

 

(h)        reduce the percentage of the aggregate
principal amount of the outstanding Securities necessary for the waiver of
compliance with certain provisions of this Indenture or the waiver of certain
defaults under this Indenture; and

 

(i)         modify
any of the provisions of this Section or Section 8.4, except to increase any such
percentage or to provide that certain provisions of this Indenture cannot be
modified or waived without the consent of the Holder of each outstanding
Security affected thereby.

 

It shall not be
necessary for the consent of the Holders under this Section 11.2 to approve the
particular form of any proposed amendment, supplement or waiver, but it shall
be sufficient if such consent approves the substance thereof.

 

After an
amendment, supplement or waiver under this Section 11.2 becomes effective, the
Company shall mail to the Holders affected thereby a notice briefly describing
the amendment, supplement or waiver. Any failure of the Company to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such amendment, supplement or waiver.

 

Section 11.3    Compliance
With Trust Indenture Act

 

Every amendment to
or supplement of this Indenture or the Securities shall comply with the TIA as
in effect at the date of such amendment or supplement.

 

Section 11.4    Revocation
and Effect of Consents

 

Until an
amendment, supplement or waiver becomes effective, a consent to it by a Holder
is a continuing consent by the Holder and every subsequent Holder of a Security
or portion of a 

 

59

 

Security that
evidences the same debt as the consenting Holder’s Security, even if notation
of the consent is not made on any Security. However, any such Holder or
subsequent Holder may revoke the consent as to its Security or portion of a
Security if the Trustee receives the notice of revocation in writing before the
date the amendment, supplement or waiver becomes effective.

 

After an
amendment, supplement or waiver becomes effective, it shall bind every
Securityholder, unless it makes a change described in any of clauses (a)
through (i) of Section 11.2. In that case the amendment, supplement or waiver
shall bind each Holder of a Security who has consented to it and every
subsequent Holder of a Security or portion of a Security that evidences the
same debt as the consenting Holder’s Security.

 

Section 11.5    Notation on or Exchange of Securities

 

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

 

Section 11.6    Trustee
To Sign Amendments, Etc

 

The Trustee shall
sign any amendment or supplemental indenture authorized pursuant to this
Article XI if the amendment or supplemental indenture does not adversely affect
the rights, duties, liabilities or immunities of the Trustee. If it does, the
Trustee may, in its sole discretion, but need not sign it. In signing or
refusing to sign such amendment or supplemental indenture, the Trustee shall be
entitled to receive and, subject to Section 9.1, shall be fully protected in
relying upon, an Opinion of Counsel stating that such amendment or supplemental
indenture is authorized or permitted by this Indenture. The Company may not
sign an amendment or supplemental indenture until the Board of Directors approves
it.

 

ARTICLE XII

Repurchase
at the option of Holders Upon a Change In Control

 

Section 12.1    Change in
Control Put

 

(a)        In the event that a Change in Control
shall occur, each Holder shall have the right (a “Change
in Control Repurchase Right”), at the Holder’s option, but subject
to the provisions of Section 12.1(a) hereof, to require the Company to
repurchase, and upon the exercise of such right the Company shall repurchase,
all of such Holder’s Securities not theretofore called for redemption, or any
portion of the principal amount thereof that is equal to $1,000 or an integral
multiple thereof as directed by such Holder pursuant to Section 12.3 (provided
that no single Securities may be repurchased in part unless the portion of the
principal amount of such Securities to be outstanding after such repurchase is
equal to $1,000 or an integral multiple thereof), on the date (the “Change
in Control Repurchase Date”) that is a Business Day no earlier than
30 days nor later than 60 days after the date of the Company Notice at a
purchase price in cash equal to 100% of the principal amount of the Securities
to be repurchased (the “Change
in Control Repurchase Price”), plus accrued and unpaid interest
(including Contingent Interest) to,

 

60

 

but excluding, the
Change in Control Repurchase Date; provided,
however, that installments of interest (including Contingent
Interest) on Securities whose Maturity is prior to or on the Change in Control
Repurchase Date shall be payable to the Holders of such Securities, registered
as such on the relevant regular record date.

 

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

 

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

 

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

 

(3)        there shall occur the liquidation or
dissolution of the Company.

 

For the purpose of the definition of “Change in
Control”, (i) “person” and “group” have the meanings given such terms under
Section 13(d) and 14(d) of the Exchange Act or any successor provision to
either of the foregoing, and the term “group” includes any group acting for the
purpose of acquiring, holding or disposing of securities within the meaning of
Rule 13d-5(b)(1) under the Exchange Act (or any successor provision thereto),
(ii) a “beneficial owner” shall be determined in accordance with Rule 13d-3
under the Exchange Act, as in effect on the date of this Indenture, except that
the number of shares of Voting Stock of the Company shall be deemed to include,
in addition to all outstanding shares of Voting Stock of the Company and
Unissued Shares deemed to be held by the “person” or “group” (as such terms are
defined above) or other Person with respect to which the Change in Control determination
is being made, all Unissued Shares deemed to be held by all other Persons, and
(iii) the terms “beneficially owned” and “beneficially own” shall have meanings
correlative to that of “beneficial owner”. The term “Unissued Shares” means
shares of Voting Stock not outstanding that are subject to options, warrants,
rights to purchase or conversion privileges exercisable within 60 days of the
date of determination of a Change in Control.

 

Notwithstanding anything to the contrary set forth in
this Section 12.1, a Change in Control will not be deemed to have occurred if
either:

 

61

 

(4)        the
closing price (determined in accordance with Section 4.6(d) of this Indenture)
of the Common Stock for any five Trading Days within:

 

(i)         the
period of the ten Trading Days immediately after the later of the Change in
Control or the public announcement of the Change in Control, in the case of a
Change in Control resulting solely from a Change in Control under Section
12.1(a)(1); or

 

(ii)        the
period of the ten Trading Days immediately preceding the Change in Control, in
the case of a Change in Control resulting from a Change in Control under
Section 12.1(a)(2) or (3),

 

is at least equal to 105% of the Conversion Price in
effect on such Trading Day; or

 

(5)        in the
case of a merger or consolidation, all of the consideration excluding cash
payments for fractional shares in the merger or consolidation constituting the
Change in Control consists of common stock traded on a United States national
securities exchange or quoted on the NNM (or which, will be so traded or quoted
when issued or exchanged in connection with such Change in Control) and as a
result of such transaction or transactions the Securities become convertible
solely into such common stock.

 

(b)        Within
10 Business Days after the occurrence of a Change in Control, the Company shall
mail a written notice of the Change in Control to the Trustee (and the Paying
Agent if the Trustee is not then acting as Paying Agent) and to each Holder
(and to beneficial owners as required by applicable law). The notice shall
include the form of a Change in Control Repurchase Notice to be completed by
the Holder and shall state:

 

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

 

(2)        the
date by which the Change in Control Repurchase Notice pursuant to this Section
12.1 must be given;

 

(3)        the
Change in Control Repurchase Date;

 

(4)        the
Change in Control Repurchase Price;

 

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

 

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

 

(7)        the
Conversion Price and any adjustments thereto;

 

(8)        that
Securities as to which a Change in Control Repurchase Notice has been given may
be converted into Common Stock pursuant to Article IV of this Indenture only to
the extent that the Change in Control Repurchase Notice has been withdrawn in
accordance with the terms of this Indenture;

 

62

 

(9)        the
procedures that the Holder must follow to exercise rights under this Section
12.1;

 

(10)      the
procedures for withdrawing a Change in Control Repurchase Notice, including a
form of notice of withdrawal; and

 

(11)      that
the Holder must satisfy the requirements set forth in the Securities in order
to convert the Securities.

 

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

 

(c)        A Holder may exercise its rights
specified in subsection (a) of this Section 12.1 upon delivery of a written
notice (which shall be in substantially the form included in Exhibit A hereto
and which may be delivered by letter, overnight courier, hand delivery,
facsimile transmission or in any other written form and, in the case of Global
Securities, may be delivered electronically or by other means in accordance
with the Depositary’s customary procedures) of the exercise of such rights (a
“Change in Control Repurchase Notice”) to any Paying Agent at any time prior to
the close of business on the Business Day next preceding the Change in Control
Repurchase Date.

 

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

 

The Company shall purchase from the Holder thereof,
pursuant to this Section 12.1, a portion of a Security if the principal amount
of such portion is $1,000 or an integral multiple of $1,000. Provisions of the
Indenture that apply to the purchase of all of a Security pursuant to Sections
12.1 through Section 12.6 also apply to the purchase of such portion of such
Security.

 

Notwithstanding anything herein to the contrary, any
Holder delivering to a Paying Agent the Change in Control Repurchase Notice
contemplated by this subsection (c) shall have the right to withdraw such
Change in Control Repurchase Notice in whole or in a portion thereof that is a
principal amount of $1,000 or in an integral multiple thereof at any time prior
to the close of business on the Business Day next preceding the Change in
Control Repurchase Date by delivery of a written notice of withdrawal to the
Paying Agent in accordance with Section 12.2.

 

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

 

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

 

63

 

Section 12.2    Effect of Change in Control Repurchase Notice

 

Upon receipt by any Paying Agent of the Change in
Control Repurchase Notice specified in Section 12.1(c), the Holder of the
Security in respect of which such Change in Control Repurchase Notice was given
shall (unless such Change in Control Repurchase Notice is withdrawn as
specified below) thereafter be entitled to receive the Change in Control
Repurchase Price with respect to such Security. Such Change in Control
Repurchase Price shall be paid to such Holder promptly following the later of
(a) the Change in Control Repurchase Date with respect to such Security
(provided the conditions in Section 12.1(c) have been satisfied) and (b) the
time of delivery of such Security to a Paying Agent by the Holder thereof in
the manner required by Section 12.1(c). Securities in respect of which a Change
in Control Repurchase Notice has been given by the Holder thereof may not be
converted into shares of Common Stock on or after the date of the delivery of
such Change in Control Repurchase Notice unless such Change in Control Repurchase
Notice has first been validly withdrawn.

 

A Change in Control Repurchase Notice may be withdrawn
by means of a written notice (which may be delivered by letter, overnight
courier, hand delivery, facsimile transmission or in any other written form and,
in the case of Global Securities, may be delivered electronically or by other
means in accordance with the Depositary’s customary procedures) of withdrawal
delivered by the Holder to a Paying Agent at any time prior to the close of
business on the Business Day immediately preceding the Change in Control
Repurchase Date, specifying the principal amount of the Security or portion
thereof (which must be a principal amount of $1,000 or an integral multiple of
$1,000 in excess thereof) with respect to which such notice of withdrawal is
being submitted.

 

Section 12.3    Deposit of Change in Control Repurchase Price

 

On or before 11:00 a.m., New York City time, on the
Change in Control Repurchase Date, the Company shall deposit with the Trustee
or with a Paying Agent (other than the Company or an Affiliate of the Company)
an amount of money (in immediately available funds if deposited on such
Business Day) sufficient to pay the aggregate Change in Control Repurchase
Price of all the Securities or portions thereof that are to be purchased as of
such Change in Control Repurchase Date. The manner in which the deposit
required by this Section 12.3 is made by the Company shall be at the option of
the Company, provided that such deposit shall be made in a manner such that the
Trustee or a Paying Agent shall have immediately available funds on the Change
in Control Repurchase Date.

 

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

 

64

 

Section 12.4    Securities
Purchased in Part

 

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

 

Section 12.5    Compliance with Securities Laws Upon Purchase of
Securities

 

In connection with any offer to purchase or purchase
of Securities under Section 12.1, the Company shall (a) comply with Rule 13e-4
and Rule 14e-1 (or any successor to either such Rule), if applicable, under the
Exchange Act, (b) file the related Schedule TO (or any successor or similar
schedule, form or report) if required under the Exchange Act, and (c) otherwise
comply with all federal and state securities laws in connection with such offer
to purchase or purchase of Securities, all so as to permit the rights of the
Holders and obligations of the Company under Sections 12.1 through 12.6 to be
exercised in the time and in the manner specified therein.

 

Section 12.6    Repayment
to the Company

 

To the extent that the aggregate amount of cash
deposited by the Company pursuant to Section 12.3 exceeds the aggregate Change
in Control Repurchase Price together with interest (including Contingent
Interest), if any, thereon of the Securities or portions thereof that the
Company is obligated to purchase, then promptly after the Change in Control
Repurchase Date the Trustee or a Paying Agent, as the case may be, shall return
any such excess cash to the Company.

 

ARTICLE
XIII

MISCELLANEOUS

 

Section 13.1    Trust
Indenture Act Controls

 

If any provision
of this Indenture limits, qualifies or conflicts with the duties imposed by any
of Sections 310 to 317, inclusive, of the TIA through operation of Section
318(c) thereof, such imposed duties shall control.

 

Section 13.2    Notices

 

Any notice,
request or communication shall be given in writing and delivered in person or
mailed by first-class mail, postage prepaid, addressed as follows:

 

If to the Company:

 

65

 

Evergreen
Resources, Inc.

1401 17th Street, Suite 1200

Denver, Colorado 80202

Attention:  Chief Financial Officer

 

If to the Trustee:

 

First Union
National Bank

5847 San Felipe, Suite 1050

Houston, Texas 77057

Attention:  Corporate Trust Group

 

Such notices or
communications shall be effective when received.

 

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

 

Any notice or
communication mailed to a Securityholder shall be mailed by first-class mail to
it at its address shown on the Register kept by the Primary Registrar.

 

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

 

Section 13.3    Communications By Holders With Other Holders

 

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

 

Section 13.4    Certificate
and Opinion as to Conditions Precedent

 

(a)        Upon any request or application by the
Company to the Trustee to take any action under this Indenture, the Company
shall furnish to the Trustee at the request of the Trustee:

 

(1)        an Officers’ Certificate stating that,
in the opinion of the signers, all conditions precedent (including any
covenants, compliance with which constitutes a condition precedent), if any,
provided for in this Indenture relating to the proposed action have been
complied with; and

 

(2)        an Opinion of Counsel stating that, in
the opinion of such counsel, all such conditions precedent (including any
covenants, compliance with which constitutes a condition precedent) have been
complied with.

 

(b)        Each
Officers’ Certificate and Opinion of Counsel with respect to compliance with a
condition or covenant provided for in this Indenture shall include:

 

66

 

(1)        a statement that the person making such
certificate or opinion has read such covenant or condition;

 

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

 

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

 

(4)        a statement as to whether or not, in the
opinion of such person, such condition or covenant has been complied with; provided, however,
that with respect to matters of fact an Opinion of Counsel may rely on an
Officers’ Certificate or certificates of public officials.

 

Section 13.5    Record Date for Vote or Consent of Securityholders

 

The Company (or,
in the event deposits have been made pursuant to Section 10.1, the Trustee) may
set a record date for purposes of determining the identity of Holders entitled
to vote or consent to any action by vote or consent authorized or permitted
under this Indenture, which record date shall not be more than thirty (30) days
prior to the date of the commencement of solicitation of such action.
Notwithstanding the provisions of Section 11.4, if a record date is fixed,
those persons who were Holders of Securities at the close of business on such
record date (or their duly designated proxies), and only those persons, shall
be entitled to take such action by vote or consent or to revoke any vote or
consent previously given, whether or not such persons continue to be Holders
after such record date.

 

Section 13.6    Rules By Trustee, Paying Agent, Registrar and Conversion Agent

 

The Trustee may
make reasonable rules (not inconsistent with the terms of this Indenture) for action
by or at a meeting of Holders. Any Registrar, Paying Agent or Conversion Agent
may make reasonable rules for its functions.

 

Section 13.7    Legal Holidays

 

A “Legal Holiday”
is a Saturday, Sunday or a day on which state or federally chartered banking institutions
in New York, New York and the state in which the Corporate Trust Office is
located are not required to be open. If a payment date is a Legal Holiday,
payment shall be made on the next succeeding day that is not a Legal Holiday,
and no interest shall accrue for the intervening period. If a Regular Record
Date is a Legal Holiday, the Record Date shall not be affected.

 

Section 13.8    Governing
Law

 

This Indenture and
the Securities shall be governed by, and construed in accordance with, the laws
of the State of New York, without regard to principles of conflicts of laws.

 

67

 

Section 13.9    No
Adverse Interpretation of Other Agreements

 

This Indenture may
not be used to interpret another indenture, loan or debt agreement of the
Company or a Subsidiary of the Company. Any such indenture, loan or debt
agreement may not be used to interpret this Indenture.

 

Section 13.10      No
Recourse Against Others

 

All liability
described in paragraph 18 of the Securities of any director, officer, employee
or shareholder, as such, of the Company is waived and released.

 

Section 13.11      Successors

 

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

 

Section 13.12      Multiple
Counterparts

 

The parties may
sign multiple counterparts of this Indenture. Each signed counterpart shall be
deemed an original, but all of them together represent the same agreement.

 

Section 13.13      Separability

 

In case any
provisions 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 13.14      Table
of Contents, Headings, Etc

 

The table of
contents, cross-reference sheet and headings of the Articles and Sections of
this Indenture have been inserted for convenience of reference only, are not to
be considered a part hereof, and shall in no way modify or restrict any of the
terms or provisions hereof.

 

68

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

 

	
   

  	
  EVERGREEN RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  FIRST UNION NATIONAL BANK, as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
				

 

69

 

EXHIBIT
A

[FORM
OF FACE OF SECURITY]

 

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY
PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN. THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE
NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED
IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY
OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE
DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY
OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.]1

 

 [THIS SECURITY
(OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933 (THE
"SECURITIES ACT"), AND THIS SECURITY AND THE SHARES OF COMMON STOCK
ISSUABLE UPON CONVERSION THEREOF MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION
THEREFROM. EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER
OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION
5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.]2

 

THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF
THE COMPANY THAT (A) THIS SECURITY AND THE SHARES OF COMMON STOCK ISSUABLE UPON
CONVERSION THEREOF MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED,
ONLY (I) IN THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES
IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II)
OUTSIDE THE 

 

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

 

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

 

A-1

 

UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904
UNDER THE SECURITIES ACT, (III) PURSUANT TO AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT PROVIDED BY RULE 144 (IF AVAILABLE), (IV) IN THE
UNITED STATES TO AN INSTITUTIONAL "ACCREDITED INVESTOR" (AS DEFINED
IN RULE 501(A)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT)
THAT, PRIOR TO SUCH TRANSFER, FURNISHES THE TRUSTEE A SIGNED LETTER CONTAINING
CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE REGISTRATION OF TRANSFER
OF SUCH NOTES AND AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY THAT SUCH
TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT, OR (V) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I)
THROUGH (V) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF
THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS
REQUIRED TO, NOTIFY ANY PURCHASER OF THIS SECURITY FROM IT OF THE RESALE
RESTRICTIONS REFERRED TO IN (A) ABOVE.]2

 

[THE HOLDER OF THIS SECURITY IS ENTITLED TO THE
BENEFITS OF A REGISTRATION RIGHTS AGREEMENT (AS SUCH TERM IS DEFINED IN THE
INDENTURE REFERRED TO ON THE REVERSE HEREOF) AND, BY ITS ACCEPTANCE HEREOF,
AGREES TO BE BOUND BY AND TO COMPLY WITH THE PROVISIONS OF SUCH REGISTRATION
RIGHTS AGREEMENT.]

 

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

 

A-2

 

EVERGREEN
RESOURCES, INC.

 

	
  CUSIP: 299-900-AA8

  	
   

  	
  R-____________

  

 

4.75%
SENIOR CONVERTIBLE NOTES DUE 2021

 

Evergreen Resources, Inc., a Colorado corporation (the
"Company", which term shall include any successor corporation under
the Indenture referred to on the reverse hereof), promises to pay to
__________________________, or registered assigns, the principal sum of _____________________________
Dollars ($__________) on December 15, 2021 [or such greater or lesser amount as
is indicated on the Schedule of Exchanges of Securities on the other side of
this Security].3

 

Interest Payment Dates:  June 15 and December 15

 

Regular Record Dates: 
June 1 and December 1

 

This Security is convertible as specified on the other
side of this Security. Additional provisions of this Security are set forth on
the other side of this Security.

 

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

 

	
   

  	
  EVERGREEN RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
  Attest:

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  
	
  FIRST UNION NATIONAL BANK, as Trustee

  	
   

  
	
   

  	
   

  
	
  Authorized
  Signatory

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
						

 

3  This phrase should be included only if
the Security is a Global Security.

 

A-3

 

[FORM OF
REVERSE SIDE OF SECURITY]

 

EVERGREEN
RESOURCES, INC. 

4.75%
SENIOR CONVERTIBLE NOTES DUE 2021

 

1.          Interest (Including Contingent Interest)

 

Evergreen Resources, Inc., a Colorado corporation (the
"Company", which term shall include any successor corporation under
the Indenture hereinafter referred to), promises to pay interest on the
principal amount of this Security at the rate of 4.75% per annum.  In addition, the Company will pay contingent
interest ("Contingent Interest"), subject to the accrual and record
date provisions described above, to the holders of Securities during any
six-month period from June 15 to December 14 and from December 15 to June 14,
as appropriate, commencing with the six-month period beginning June 15, 2002,
if the average Trading Price of Securities for the five Trading Days ending on
the second Trading Day immediately preceding the beginning of the relevant
six-month period equals 120% or more of the principal amount of
Securities.  Contingent Interest will
accrue on this Security under the conditions specified in the Indenture and in
this Note at a rate equal the greater of (i) a per annum rate equal to 5.00% of
the Company’s estimated per annum borrowing rate for senior non-convertible
fixed rate Indebtedness with a Maturity comparable to this Security and (ii)
0.30% per annum, but in no event may the rate of Contingent Interest exceed a
per annum rate of 0.40%.  The Company
shall pay interest semiannually on June 15 and December 15 of each year,
commencing June 15, 2002.  Interest
(including Contingent Interest) on the Securities shall accrue from the most
recent date to which interest has been paid or, if no interest has been paid,
from December 18, 2001; provided, however, that if there is not an existing default
in the payment of interest (including Contingent Interest) and if this Security
is authenticated between a Regular Record Date referred to on the face hereof
and the next succeeding Interest Payment Date, interest shall accrue from such
Interest Payment Date. Interest (including Contingent Interest) will be
computed on the basis of a 360-day year of twelve 30-day months. Any reference
herein to interest accrued or payable as of any date shall include any
Liquidated Damages accrued or payable on such date as provided in the
Registration Rights Agreement.

 

If any Security is surrendered for conversion
subsequent to the Regular Record Date preceding an Interest Payment Date but on
or prior to such Interest Payment Date (except Security called for redemption
on a Redemption Date between such Regular Record Date and Interest Payment
Date), the Holder of such Security at the close of business on such Regular
Record Date shall be entitled to receive the interest (including Contingent
Interest) payable on such Security on such Interest Payment Date notwithstanding
the conversion thereof.  Any Security
surrendered for conversion during the period from the close of business on any
Regular Record Date next preceding any Interest Payment Date to the opening of
business on such Interest Payment Date shall (except in the case of Securities
which have been called for redemption on a Redemption Date within such period)
be accompanied by payment in New York Clearing House funds or other funds of an
amount equal to the interest (including Contingent Interest) payable on such
Interest Payment Date on the Security being surrendered for conversion.  Except as provided in this Security or in
the Indenture, no adjustments in respect of payments of interest (including for
conversion on any dividend or distributions or interest 

 

A-4

 

(including Contingent Interest)) on any Security surrendered for
conversion on any dividend or distributions or interest (including Contingent
Interest) on the Common Stock issued upon conversion shall be made upon the
conversion of any Security.

 

All percentages resulting from any calculation with
respect to this Security will be rounded, if necessary, to the nearest one
hundred-thousandth of a percentage point (with five one-millionths of a percentage
point being rounded upward) and all dollar amounts used in or resulting from
any such calculation with respect to this Security will be rounded to the
nearest cent (with one-half cent being rounded upward.)

 

2.          Method of Payment

 

The Company shall pay interest on this Security
(except defaulted interest) to the person who is the Holder of this Security at
the close of business on June 1 or December 1, as the case may be, next
preceding the related Interest Payment Date. The Holder must surrender this
Security to a Paying Agent to collect payment of principal. The Company will
pay principal and interest in money of the United States that at the time of
payment is legal tender for payment of public and private debts. The Company
may, however, pay principal and interest in respect of any Certificated
Security by check or wire payable in such money; provided, however, that a Holder
with an aggregate principal amount in excess of $2,000,000 will be paid by wire
transfer in immediately available funds at the election of such Holder. The
Company may mail an interest check to the Holder’s registered address.
Notwithstanding the foregoing, so long as this Security is registered in the
name of a Depositary or its nominee, all payments hereon shall be made by wire
transfer of immediately available funds to the account of the Depositary or its
nominee.

 

3.          Paying Agent, Registrar And Conversion Agent

 

Initially, First Union National Bank (the
"Trustee," which term shall include any successor trustee under the
Indenture hereinafter referred to) will act as Paying Agent, Registrar and
Conversion Agent. The Company may change any Paying Agent, Registrar or
Conversion Agent without notice to the Holder. The Company or any of its
Subsidiaries may, subject to certain limitations set forth in the Indenture,
act as Paying Agent or Registrar.

 

4.          Indenture, Limitations

 

This Security is one of a duly authorized issue of
Securities of the Company designated as its 4.75% Senior Convertible Notes due
2021 (the "Securities"), issued under an Indenture dated as of
December 18, 2001 (together with any supplemental indentures thereto, the
"Indenture"), between the Company and the Trustee. The terms of this
Security include those stated in the Indenture and those required by or made part
of the Indenture by reference to the Trust Indenture Act of 1939, as amended,
as in effect on the date of the Indenture. This Security is subject to all such
terms, and the Holder of this Security is referred to the Indenture and said
Act for a statement of them.

 

The Securities are senior unsecured obligations of the
Company limited to $100,000,000 aggregate principal amount, subject to Section
2.2 of the Indenture. The Indenture does not limit other debt of the Company,
secured or unsecured.

 

A-5

 

5.          Optional Redemption

 

The Securities are subject to redemption, at any time
on or after December 20, 2006, on at least 20 days and no more than 60 days
notice, in whole or in part, at the election of the Company, at a Redemption
Price equal to 100% of the principal amount thereof, together with accrued
interest (including Contingent Interest) up to but not including the Redemption
Date; provided that if the redemption date is an Interest Payment Date, interest
will be payable to the Holders in whose names the Securities are registered at
the close of business on the relevant record dates.

 

6.          Notice of Redemption

 

Notice of redemption will be mailed by first-class
mail at least 20 days but not more than 60 days before the Redemption Date to
each Holder of Securities to be redeemed at its registered address. Securities
in denominations larger than $1,000 may be redeemed in part, but only in whole
multiples of $1,000. On and after the Redemption Date, subject to the deposit
with the Paying Agent of funds sufficient to pay the Redemption Price plus
accrued interest, if any, accrued to, but excluding, the Redemption Date,
interest shall cease to accrue on Securities or portions of them called for
redemption.

 

7.          Repurchase of Securities by the Company at Option of
Holder

 

(a) Subject to
the terms and conditions of the Indenture and at the option of the Holder, on
December 20, 2006, on December 15, 2011 and December 15, 2016, the Company
shall become obligated to purchase all of such Holder’s Securities, or any
portion of the principal amount thereof that is equal to any integral multiple
of $1,000, at a Repurchase Price equal to 100% of the principal amount of the
Securities to be repurchased, plus accrued and unpaid interest (including
Contingent Interest) to, but excluding, December 20, 2006, December 15, 2011
and December 15, 2016, as the case may be. 
On December 20, 2006, the Repurchase Price may be paid, at the option of
the Company, in cash or by the issuance of shares of Common Stock, or in any
combination thereof, in accordance with the Indenture.  On December 15, 2011 and December 15, 2016,
the Repurchase Price must be paid in cash only.

 

(b) In addition,
subject to the terms and conditions of the Indenture and at the option of the
Holder, following the occurrence of a Change in Control, the Company shall
become obligated to purchase all of such Holder’s Securities, or any portion of
the principal amount thereof that is equal to any integral multiple of $1,000,
on the date that is 45 days after the date of the Company Notice given in
connection with such Change in Control at a repurchase price equal to 100% of
the principal amount of the Securities to be repurchased, plus accrued and
unpaid interest (including Contingent Interest) to, but excluding, the Change
in Control Repurchase Date.

 

8.          Conversion

 

Subject to compliance with the provisions of the
Indenture, a Holder of a Security may convert the principal amount of such
Security (or any portion thereof equal to $1,000 or any integral multiple of
$1,000 in excess thereof) into shares of Common Stock at the Conversion Price
in effect at the time of conversion under certain circumstances described in
the Indenture;

 

A-6

 

 provided, however, that if the
Security is called for redemption or subject to repurchase upon a specific date
pursuant to Article V of the Indenture or upon a Change in Control, the
conversion right will terminate at the close of business on the Business Day
immediately preceding the redemption date or the Change in Control Repurchase
Date, as the case may be, for such Security or such earlier date as the Holder
presents such Security for redemption or purchase (unless the Company shall
default in making the redemption payment, Optional Repurchase Price or Change
in Control Repurchase Price, as the case may be, when due, in which case the
conversion right shall terminate at the close of business on the date such
default is cured and such Security is redeemed or purchased).

 

The Company will notify Holders of any event
triggering the right to convert the Security as specified above in accordance
with the Indenture.

 

A Security in respect of which a Holder has delivered
an Optional Repurchase Notice or a Change in Control Repurchase Notice
exercising the option of such Holder to require the Company to repurchase such
Security may be converted only if such notice of exercise is withdrawn in
accordance with the terms of the Indenture.

 

The initial Conversion Price is $50.00 per share,
subject to adjustment under certain circumstances. The number of shares of
Common Stock issuable upon conversion of a Security is determined by dividing
the principal amount of the Security or portion thereof converted by the Conversion
Price in effect on the Conversion Date. No fractional shares will be issued
upon conversion; in lieu thereof, an amount will be paid in cash based upon the
closing price (as defined in the Indenture) of the Common Stock on the Trading
Day immediately prior to the Conversion Date.

 

To convert a Security, a Holder must (a) complete and
manually sign the conversion notice set forth below and deliver such notice to
a Conversion Agent, (b) surrender the Security to a Conversion Agent, (c)
furnish appropriate endorsements and transfer documents if required by a
Registrar or a Conversion Agent, and (d) pay any transfer or similar tax, if
required. Securities so surrendered for conversion (in whole or in part) during
the period from the close of business on any Regular Record Date to the opening
of business on the next succeeding Interest Payment Date (excluding Securities
or portions thereof called for redemption or subject to repurchase upon a
specific date pursuant to Article V of the Indenture or upon a Change in
Control on a Redemption Date, Optional Repurchase Date or Change in Control
Repurchase Date, as the case may be, during the period beginning at the close
of business on a Regular Record Date and ending at the opening of business on
the first Business Day after the next succeeding Interest Payment Date, or if
such Interest Payment Date is not a Business Day, the second such Business Day)
shall also be accompanied by payment in funds acceptable to the Company of an
amount equal to the interest payable on such Interest Payment Date on the
principal amount of such Security then being converted, and such interest shall
be payable to such registered Holder notwithstanding the conversion of such
Security, subject to the provisions of this Indenture relating to the payment
of defaulted interest by the Company. If the Company defaults in the payment of
interest (including Contingent Interest) payable on such Interest Payment Date,
the Company shall promptly repay such funds to such Holder. A Holder may convert
a portion of a Security equal to $1,000 or any integral multiple thereof.

 

A-7

 

9.          Conversion Arrangement on Call for Redemption

 

Any Securities called for redemption, unless
surrendered for conversion before the close of business on the Business Day
immediately preceding the Redemption Date, may be deemed to be purchased from
the Holders of such Securities at an amount not less than the Redemption Price,
together with accrued interest, if any, to, but not including, the Redemption
Date, by one or more investment bankers or other purchasers who may agree with
the Company to purchase such Securities from the Holders, to convert them into
Common Stock of the Company and to make payment for such Securities to the
Paying Agent in trust for such Holders.

 

10.        Tax Treatment

 

The Company agrees, and by acceptance of a beneficial
ownership interest in the Securities each beneficial holder of Securities will
be deemed to have agreed, for United States 
federal income tax purposes (1) to treat the Securities as indebtedness
that is subject to Treas. Reg. Sec. 1.1275-4 (the "Contingent Payment
Regulations") and, for purposes of the Contingent Payment Regulations, to
treat the fair market value of any stock beneficially received by a beneficial
holder upon any conversion of the Securities as a contingent payment and (2) to
be bound by the Company’s determination of the "comparable yield" and
"projected payment schedule," within the meaning of the Contingent
Payment Regulations, with respect to the Securities.  A Holder of Securities may obtain the amount of the original
issue discount, issue date, yield to maturity, comparable yield and projected
payment by submitting a written request for it to the Company at the following
address: Evergreen Resources, Inc., 1401 17th Street, Suite 1200, Denver,
Colorado 80202, Attention: Chief Financial Officer.

 

11.        Denominations, Transfer, Exchange

 

The Securities are in registered form without coupons
in denominations of $1,000 and integral multiples of $1,000. A Holder may
register the transfer of or exchange Securities in accordance with the
Indenture. The Registrar may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents and to pay any taxes or other
governmental charges that may be imposed in relation thereto by law or
permitted by the Indenture.

 

12.        Persons Deemed Owners

 

The Holder of a Security may be treated as the owner
of it for all purposes.

 

13.        Unclaimed Money

 

If money for the payment of principal or interest
(including Contingent Interest) remains unclaimed for two years, the Trustee or
Paying Agent will pay the money back to the Company at its written request.
After that, Holders entitled to money must look to the Company for payment.

 

A-8

 

14.        Amendment, Supplement and Waiver

 

Subject to certain exceptions, the Indenture or the
Securities may be amended or supplemented with the consent of the Holders of at
least a majority in principal amount of the Securities then outstanding, and an
existing default or Event of Default and its consequence or compliance with any
provision of the Indenture or the Securities may be waived in a particular
instance with the consent of the Holders of a majority in principal amount of
the Securities then outstanding. Without the consent of or notice to any
Holder, the Company and the Trustee may amend or supplement the Indenture or
the Securities to, among other things, cure any ambiguity, defect or inconsistency
or make any other change that does not adversely affect the rights of any
Holder.

 

15.        Successor Corporation

 

When a successor corporation assumes all the
obligations of its predecessor under the Securities and the Indenture in
accordance with the terms and conditions of the Indenture, the predecessor
corporation will (except in certain circumstances specified in the Indenture)
be released from those obligations.

 

16.        Defaults and Remedies

 

Under the Indenture, an Event of Default includes:
(i). default for 30 days in payment of any interest (including Contingent
Interest) on any Securities; (ii). default in payment of any principal
(including, without limitation, any premium, if any) on the Securities when
due; (iii). failure by the Company for 60 days after notice to it to comply
with any of its other agreements contained in the Indenture or the Securities;
(iv). a default which involves the failure to pay principal of or any premium
or interest on Indebtedness of the Company and its Subsidiaries, or which
results in the acceleration of such Indebtedness prior to its stated maturity,
if such Indebtedness aggregates $10 million or more; (v). failure by the
Company or any of its Subsidiaries to pay final judgments aggregating in excess
of $10 million, which judgments are not paid, discharged or stayed for a period
of 60 days; (vi) certain events of bankruptcy, insolvency or reorganization of
the Company. If an Event of Default (other than as a result of certain events
of bankruptcy, insolvency or reorganization of the Company or any of its
Subsidiaries) occurs and is continuing, the Trustee or the Holders of at least
25% in principal amount of the Securities then outstanding may declare all
unpaid principal to the date of acceleration on the Securities then outstanding
to be due and payable immediately, all as and to the extent provided in the
Indenture. If an Event of Default occurs as a result of certain events of
bankruptcy, insolvency or reorganization of the Company, unpaid principal of
the Securities then outstanding shall become due and payable immediately
without any declaration or other act on the part of the Trustee or any Holder,
all as and to the extent provided in the Indenture. Holders may not enforce the
Indenture or the Securities except as provided in the Indenture. The Trustee
may require indemnity satisfactory to it before it enforces the Indenture or
the Securities. Subject to certain limitations, Holders of a majority in
principal amount of the Securities then outstanding may direct the Trustee in
its exercise of any trust or power. The Trustee may withhold from Holders
notice of any continuing default (except a default in payment of principal or
interest (including Contingent Interest)) if it determines that withholding
notice is in their 

 

A-9

 

interests. The Company is required to file periodic reports with the
Trustee as to the absence of default.

 

17.        Trustee
Dealings with the Company

 

First Union National Bank, the Trustee under the
Indenture, in its individual or any other capacity, may make loans to, accept
deposits from and perform services for the Company or an Affiliate of the
Company, and may otherwise deal with the Company or an Affiliate of the
Company, as if it were not the Trustee.

 

18.        No Recourse Against Others

 

A director, officer, employee or shareholder, as such,
of the Company shall not have any liability for any obligations of the Company
under the Securities or the Indenture nor for any claim based on, in respect of
or by reason of such obligations or their creation. The Holder of this Security
by accepting this Security waives and releases all such liability. The waiver
and release are part of the consideration for the issuance of this Security.

 

19.        Authentication

 

This Security shall not be valid until the Trustee or
an authenticating agent manually signs the certificate of authentication on the
other side of this Security.

 

20.        Abbreviations and Definitions

 

Customary abbreviations may be used in the name of the
Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship
and not as tenants in common), CUST (= Custodian) and UGMA (= Uniform Gifts to
Minors Act).

 

All terms defined in the
Indenture and used in this Security but not specifically defined herein are
defined in the Indenture and are used herein as so defined.

 

21.        Indenture to Control; Governing Law

 

In the case of any conflict between the provisions of
this Security and the Indenture, the provisions of the Indenture shall control.
This Security shall be governed by, and construed in accordance with, the laws
of the State of New York, without regard to principles of conflicts of law.

 

The Company will furnish to any Holder, upon written
request and without charge, a copy of the Indenture. Requests may be made to:
Evergreen Resources, Inc., 1401 17th Street, Suite 1200, Denver, Colorado
80202, Attention:  Chief Financial Officer.

 

A-10

 

ASSIGNMENT
FORM

 

To assign this Security, fill in the form below:

 

I or we assign and transfer this Security to

 

____________________________________________________________________________________________________________

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

 

____________________________________________________________________________________________________________

 

____________________________________________________________________________________________________________

 

____________________________________________________________________________________________________________

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

 

and irrevocably appoint
________________________________________________________________________________________

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

 

	
   

  	
  Your Signature:

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

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

  
	
  *Signature guaranteed by:

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  

 

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

 

A-11

 

CONVERSION
NOTICE

 

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

 

To convert only part of this Security, state the
principal amount to be converted (must be $1,000 or a multiple of $1,000):
$____________.

 

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

 

____________________________________________________________________________________________________________

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

 

____________________________________________________________________________________________________________

 

____________________________________________________________________________________________________________

 

____________________________________________________________________________________________________________

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

 

	
   

  	
  Your Signature:

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

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

  
	
  *Signature guaranteed by:

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
						

 

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

 

A-12

 

OPTION
TO ELECT REPURCHASE UPON A CHANGE IN CONTROL OR ON SPECIFIC DATES

 

To:       Evergreen
Resources, Inc.

 

To elect to have
this Security purchased by the Company pursuant to Article V (Repurchase at
Option of Holder on Specific Dates) or Article XII (Repurchase at Option of
Holder Upon a Change in Control) of the Indenture, check the applicable box:

 

o         Article V (Repurchase at
Option of Holder on Specific Dates)

o         Article
XII (Repurchase at Option of Holder Upon a Change in Control)

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature(s)

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature
  Guaranty

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

  	
   

  
	
   

  	
   

  
					

 

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

 

A-13

 

SCHEDULE
OF EXCHANGES OF NOTES4

 

The following exchanges, redemptions, repurchases or
conversions of a part of this global Security have been made:

 

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

  	
   

  	
  Authorized
  Signatory of Securities Custodian

  	
   

  	
  Amount
  of Decrease in Principal Amount of this Global Security

  	
   

  	
  Amount
  of Increase in Principal Amount of this Global Security

  

 

 

4           This
schedule should be included only if the security is a Global Security.

 

A-14

 

CERTIFICATE
TO BE DELIVERED UPON EXCHANGE OR REGISTRATION

OF TRANSFER OF TRANSFER RESTRICTED SECURITIES5

 

Re:        4.75% Senior Convertible
Notes due 2021 (the “Securities”) of Evergreen Resources, Inc.

 

This certificate relates to $_______ principal amount
of Securities owned in (check applicable box)

 

o 
book-entry or  o  definitive
form by ____________________ (the “Transferor”).

 

The Transferor has requested a Registrar or the
Trustee to exchange or register the transfer of such Securities.

 

In connection with such request and in respect of each
such Security, the Transferor does hereby certify that the Transferor is
familiar with transfer restrictions relating to the Securities as provided in
Section 2.6 of the Indenture dated as of December 18, 2001 between Evergreen
Resources, Inc. and First Union National Bank (the “Indenture”), and the
transfer of such Security is being made pursuant to an effective registration
statement under the Securities Act of 1933, as amended (the “Securities Act”)
(check applicable box) or the transfer or exchange, as the case may be, of such
Security does not require registration under the Securities Act because (check
applicable box):

 

o 
Such Security is being transferred pursuant to an effective registration
statement under the Securities Act.

 

o 
Such Security is being acquired for the Transferor’s own account,
without transfer.

 

o 
Such Security is being transferred to the Company or a Subsidiary (as
defined in the Indenture) of the Company.

 

o 
Such Security is being transferred to a person the Transferor reasonably
believes is a “qualified institutional buyer” (as defined in Rule 144A or any
successor provision thereto (“Rule 144A”) under the Securities Act) that is
purchasing for its own account or for the account of a “qualified institutional
buyer”, in each case to whom notice has been given that the transfer is being
made in reliance on such Rule 144A, and in each case in reliance on Rule 144A.

 

o 
Such Security is being transferred outside the United States in an
offshore transaction in accordance with Rule 904 under the Securities Act.

 

o 
Such Security is being transferred in the United States to an
institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or
(7) of Regulation D under the Securities Act) that, prior to such transfer,
will furnish to the Trustee a signed letter containing certain representations
and agreements relating to the transfer of such Securities and an opinion of
counsel acceptable to the Company that such transfer is in compliance with the
Securities Act.

 

5           This
certificate should only be included if this Security is a Transfer Restricted
Security

 

A-15

 

o 
Such Security is being transferred pursuant to and in compliance with an
exemption from the registration requirements under the Securities Act in
accordance with Rule 144 (or any successor thereto) (“Rule 144”) under the
Securities Act.

 

o 
Such Security is being transferred pursuant to and in compliance with an
exemption from the registration requirements of the Securities Act (other than
an exemption referred to above) and as a result of which such Security will,
upon such transfer, cease to be a “restricted security” within the meaning of
Rule 144 under the Securities Act.

 

The Transferor acknowledges and agrees that, if the
transferee will hold any such Securities in the form of beneficial interests in
a global Security which is a “restricted security” within the meaning of Rule
144 under the Securities Act, then such transfer can only be made pursuant to
Rule 144A under the Securities Act and such transferee must be a “qualified
institutional buyer” (as defined in Rule 144A).

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
  (Insert Name of
  Transferor)

  

 

A-16Exhibit
4.4

 

Execution Copy

 

 

REGISTRATION
RIGHTS AGREEMENT

 

between

 

EVERGREEN
RESOURCES, INC.

 

and

 

BEAR,
STEARNS & CO. INC.

 

FIRST
UNION SECURITIES, INC.

 

UBS
WARBURG LLC

 

JEFFERIES
& COMPANY, INC.

 

STIFEL,
NICOLAUS & COMPANY, INCORPORATED

 

Dated
as of December 18, 2001

 

 

This REGISTRATION
RIGHTS AGREEMENT, dated as of December 18, 2001, is between EVERGREEN
RESOURCES, INC., a Colorado corporation (together with any successor entity,
herein referred to as the “Issuer”), and BEAR, STEARNS & CO. INC., FIRST UNION
SECURITIES, INC., UBS WARBURG LLC, JEFFERIES & COMPANY, INC. and STIFEL,
NICOLAUS & COMPANY, INCORPORATED (collectively, the “Initial Purchasers”).

 

Pursuant to the
Purchase Agreement, dated December 12, 2001, between the Issuer and the Initial
Purchasers (the “Purchase Agreement”),
the Initial Purchasers have agreed to purchase from the Issuer $100,000,000
aggregate principal amount of 4.75% Senior Convertible Notes due 2021 (the “Convertible Notes”). The
Convertible Notes will be convertible into fully paid, nonassessable common
stock, no par value per share, of the Issuer (the “Common Stock”) on the terms, and
subject to the conditions, set forth in the Indenture (as defined herein). To
induce the Initial Purchasers to purchase the Convertible Notes, and in
satisfaction of a condition to the Initial Purchasers’ obligations under the
Purchase Agreement, the Issuer has agreed to provide the registration rights
set forth in this Agreement.

 

The parties hereby
agree as follows:

 

1.          Definitions.

 

As used in this
Agreement, the following capitalized terms shall have the following meanings:

 

“Advice”: As
defined in Section 4(c)(ii) hereof.

 

“Affiliate”:
With respect to any specified Person, means an “Affiliate,” as defined in Rule
144 under the Securities Act, of such Person.

 

“Agreement”:
This Registration Rights Agreement.

 

“Blue Sky Application”:
As defined in Section 6(a)(i) hereof.

 

“Broker-Dealer”:
Any broker or dealer registered under the Exchange Act.

 

“Business Day”:
A day other than a Saturday or Sunday or any federal holiday in the United
States.

 

“Closing Date”:
The date of this Agreement.

 

“Commission”:
The United States Securities and Exchange Commission.

 

“Common Stock”:
As defined in the preamble hereto.

 

“Control”:
With respect to a Person, the possession, directly or indirectly, of the power
to direct or cause the direction of the management or policies of such Person,
whether through the ability to exercise voting power, by contract or otherwise.

 

 

“Convertible Notes”:
As defined in the preamble hereto.

 

“Damages Payment Date”:
Each interest payment date with respect to the Convertible Notes.

 

“Effectiveness Period”:
As defined in Section 2(a)(iii) hereof.

 

“Effectiveness Target
Date”: As defined in Section 2(a)(ii) hereof.

 

“Exchange Act”:
The Securities Exchange Act of 1934, as amended.

 

“Holder”: A
Person who owns, beneficially or otherwise, Registrable Securities.

 

“Indemnified Holder”:
As defined in Section 6(a) hereof.

 

“Indenture”:
The Indenture, dated as of December 18, 2001, between the Issuer and First
Union National Bank, as trustee (the “Trustee”), pursuant to which the
Convertible Notes are to be issued, as such Indenture is amended, modified or
supplemented from time to time in accordance with the terms thereof.

 

“Initial Purchasers”:
As defined in the preamble hereto.

 

“Issuer”: As
defined in the preamble hereto.

 

“Liquidated Damages”:
As defined in Section 3(a) hereof.

 

“Majority of Holders”:
Holders holding over 50% of the aggregate principal amount of Convertible Notes
outstanding; provided that, for purpose of this definition, a Holder of shares
of Common Stock that constitute Registrable Securities and issued upon
conversion of the Convertible Notes shall be deemed to hold an aggregate
principal amount of Convertible Notes (in addition to the principal amount of
Convertible Notes held by such Holder) equal to the product of (x) the number
of such shares of Common Stock held by such Holder and (y) the prevailing
conversion price, such prevailing conversion price as determined in accordance
with Article 4 of the Indenture.

 

“NASD”:
National Association of Securities Dealers, Inc.

 

“Person”: An
individual, partnership, corporation, unincorporated organization, trust, joint
venture or a government or agency or political subdivision thereof.

 

“Prospectus”:
The prospectus included in a Shelf Registration Statement, as amended or
supplemented by any prospectus supplement and by all other amendments thereto,
including post-effective amendments, and all material incorporated by reference
into such Prospectus.

 

“Questionnaire Deadline”:
As defined in Section 2(b) hereof.

 

“Record Holder”:
With respect to any Damages Payment Date, each Person who is a Holder on the
record date with respect to the interest payment date on which such Damages
Payment Date shall occur. In the case of a Holder of shares of Common Stock
issued upon

 

3

 

conversion of the
Convertible Notes, “Record
Holder” shall mean each Person who is a Holder of shares of Common
Stock that constitute Registrable Securities on the June 1 or December 1
immediately preceding the Damages Payment Date.

 

“Registrable Securities”:
Each Convertible Note and each share of Common Stock issued upon conversion of
Convertible Notes until, in the case of any such security, (A) the earliest of
(i) its effective registration under the Securities Act and resale in
accordance with the Registration Statement covering it, (ii) expiration of the
holding period that would be applicable thereto under Rule 144(k) under the
Securities Act were it not held by an Affiliate of the Issuer or (iii) its sale
to the public pursuant to Rule 144 under the Securities Act, and (B) as a
result of the event or circumstance described in any of the foregoing clauses (i)
through (iii), the legends with respect to transfer restrictions required under
the Indenture are removed or removable in accordance with the terms of the
Indenture or such legend, as the case may be.

 

“Registration Default”:
As defined in Section 3(a)(iv) hereof.

 

“Registration Statement”:
Means any registration statement of the Issuer that covers any of the
Registrable Securities pursuant to the provisions of this Agreement including
the Prospectus, amendments and supplements to such registration statement,
including post-effective amendments, all exhibits, and all materials
incorporated by reference or explicitly deemed to be incorporated by reference
in such registration statement.

 

“Sale Notice”:
As defined in Section 4(e) hereof.

 

“Securities Act”:
The Securities Act of 1933, as amended.

 

“Shelf Filing Deadline”:
As defined in Section 2(a)(i) hereof.

 

“Shelf Registration
Statement”: As defined in Section 2(a)(i) hereof.

 

“Suspension Period”:
As defined in Section 4(b)(i) hereof.

 

“TIA”: The
Trust Indenture Act of 1939, as in effect on the date the Indenture is
qualified under that act.

 

“Underwriting Majority”:
On any date, Holders holding at least 66 2/3% of the aggregate principal amount
of the Registrable Securities outstanding on such date; provided, that for the purpose of
this definition, a holder of shares of Common Stock that constitute Registrable
Securities and issued upon conversion of Convertible Notes shall be deemed to
hold an aggregate principal amount of Registrable Securities (in addition to
the principal amount of Convertible Notes held by such holder) equal to (x) the
number of such shares of Common Stock that are Registrable Securities held by
such holder multiplied by (y) the then applicable Conversion Price (as defined
in the Indenture).

 

“Underwritten
Registration” or “Underwritten Offering”: A registration in which securities
of the Issuer are sold to an underwriter for reoffering to the public.

 

4

 

2.          Shelf
Registration.

 

(a)        The Issuer shall:

 

(i)         not later than 90 days after the date
hereof (the “Shelf
Filing Deadline”), cause to be filed a registration statement
pursuant to Rule 415 under the Securities Act (the “Shelf Registration Statement”),
which Shelf Registration Statement shall provide for resales of all Registrable
Securities held by Holders that have provided the information required pursuant
to the terms of Section 2(b) hereof;

 

(ii)        use its reasonable best efforts to cause
the Shelf Registration Statement to be declared effective by the Commission no
later than 180 days after the date hereof (the “Effectiveness Target Date”); and

 

(iii)       subject to Section 4(b)(i) hereof, use
its reasonable best efforts to keep the Shelf Registration Statement
continuously effective, supplemented and amended as required by the provisions
of Section 4(b) hereof to the extent necessary to ensure that (A) it is
available for resales by the Holders of Registrable Securities entitled to the
benefit of this Agreement and (B) conforms with the requirements of this
Agreement and the Securities Act and the rules and regulations of the
Commission promulgated thereunder as announced from time to time for a period
(the “Effectiveness
Period”) of:

 

(1)        two years after the date of filing of
the Shelf Registration Statement; or

 

(2)        such shorter period, from the date of
filing of the Shelf Registration Statement until either of (i) the sale
pursuant to a Shelf Registration Statement of all the Registrable Securities or
(ii) the expiration of the holding period applicable to the Registrable
Securities held by Holders that are not Affiliates of the Issuer under Rule
144(k) under the Securities Act.

 

(b)        No Holder of Registrable Securities may
include any of its Registrable Securities in the Shelf Registration Statement
pursuant to this Agreement unless such Holder furnishes to the Issuer in
writing, prior to or on the 20th Business Day after receipt of a request
therefor (the “Questionnaire
Deadline”), such information as the Issuer may reasonably request
for use in connection with the Shelf Registration Statement or Prospectus or
preliminary Prospectus included therein and in any application to be filed with
or under state securities laws. In connection with all such requests for
information from Holders of Registrable Securities, the Issuer shall notify
such Holders of the requirements set forth in the preceding sentence. No Holder
of Registrable Securities shall be entitled to Liquidated Damages pursuant to
Section 3 hereof unless such Holder shall have provided all such reasonably
requested information prior to or on the Questionnaire Deadline. Each Holder as
to which the Shelf Registration Statement is being effected agrees to furnish
promptly to the Issuer all information required to be disclosed in order to
make information previously furnished to the Issuer by such Holder not
materially misleading.

 

5

 

3.          Liquidated
Damages.

 

(a)        If:

 

(i)         the Shelf Registration Statement has
not been filed with the Commission prior to or on the Shelf Filing Deadline,

 

(ii)        the Shelf Registration Statement has not
been declared effective by the Commission prior to or on the Effectiveness
Target Date,

 

(iii)       subject to the provisions of Section
4(b)(i) hereof, the Shelf Registration Statement is filed and declared
effective but, during the Effectiveness Period and after the Effectiveness
Target Date, shall thereafter cease to be effective or fail to be usable for
its intended purpose without being succeeded within five Business Days by a
post-effective amendment to the Shelf Registration Statement or a report filed
with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the
Exchange Act that cures such failure and, in the case of a post-effective
amendment, is itself declared effective within such five Business Day period,
or

 

(iv)       prior to or on the 45th or 60th day, as
the case may be, of any Suspension Period, such suspension has not been
terminated, (each such event referred to in foregoing clauses (i) through (iv),
a “Registration
Default”),

 

then the Issuer
hereby agrees to pay liquidated damages (“Liquidated Damages”) to each
Holder from and including the day following the Registration Default to but
excluding the day on which the Registration Default has been cured in an amount
equal to:

 

(A)       with respect to such Holder’s Convertible
Notes, for the first 90-day period during which a Registration Default shall
have occurred and be continuing but excluding the day on which all Registration
Defaults have been cured, an amount equal to 0.25% per annum on the principal
amount of such Holder’s then outstanding and not converted Convertible Notes,
increasing to an amount per annum on the principal amount of such Holder’s then
outstanding and not converted Convertible Notes equal to 0.50% on the 91st day,
provided that in no event shall the aggregate Liquidated Damages pursuant to
this clause accrue at a rate per annum exceeding 0.50% of the sum of the
principal amount of the then outstanding Convertible Notes;

 

(B)       with respect to such Holder’s Common
Stock issued upon conversion of Convertible Notes for the first 90-day period
during which a Registration Default shall have occurred and be continuing but
excluding the day on which all Registration Defaults have been cured, an amount
equal to 0.25% per annum on the principal amount of such Holder’s converted
Convertible Notes, increasing to an amount per annum on the principal amount of
such Holder’s converted Convertible Notes equal to 0.50% on the 91st day,
provided that in no event shall the aggregate Liquidated Damages pursuant to
this clause accrue at a rate per annum exceeding 0.50% of the sum of the
principal amount of the then converted Convertible Notes;

 

6

 

(b)        All accrued Liquidated Damages shall be
paid in arrears to Record Holders by the Issuer on each Damages Payment Date by
wire transfer of immediately available funds or by federal funds check.
Following the cure of all Registration Defaults relating to any particular
Convertible Note or share of Common Stock, the accrual of Liquidated Damages
with respect to such Convertible Note or share of Common Stock will cease.

 

All obligations of
the Issuer set forth in this Section 3 that are outstanding with respect to any
Registrable Security at the time such security ceases to be a Registrable
Security shall survive until such time as all such obligations with respect to
such Registrable Security shall have been satisfied in full.

 

The Liquidated
Damages set forth above shall be the exclusive monetary remedy available to the
Holders of Registrable Securities for such Registration Default.

 

4.          Registration
Procedures.

 

(a)        In connection with the Shelf
Registration Statement, the Issuer shall comply with all the provisions of  Section 4(b) hereof and shall, in
accordance with Section 2 hereof, prepare and file with the Commission a Shelf
Registration Statement relating to the registration on any appropriate form
under the Securities Act.

 

(b)        In connection with the Shelf Registration
Statement and any Prospectus required by this Agreement to permit the sale or
resale of Registrable Securities, the Issuer shall:

 

(i)         Subject to any notice by the Issuer in
accordance with this Section 4(b) of the existence of any fact or event of the
kind described in Section 4(b)(iii)(D), use its reasonable best efforts to keep
the Shelf Registration Statement continuously effective during the
Effectiveness Period; upon the occurrence of any event that would cause the
Shelf Registration Statement or the Prospectus contained therein (A) to contain
a material misstatement or omission or (B) not be effective and usable for
resale of Registrable Securities during the Effectiveness Period, the Issuer
shall file promptly an appropriate amendment to the Shelf Registration
Statement or a report filed with the Commission pursuant to Section 13(a),
13(c), 14 or 15(d) of the Exchange Act, in the case of clause (A), correcting
any such misstatement or omission, and, in the case of either clause (A) or
(B), use its reasonable best efforts to cause such amendment to be declared
effective and the Shelf Registration Statement and the related Prospectus to
become usable for their intended purposes as soon as practicable thereafter.
Notwithstanding the foregoing, the Issuer may suspend the effectiveness of the
Shelf Registration Statement by written notice to the Holders for a period not
to exceed an aggregate of 45 days in any 90-day period (each such period, a “Suspension Period”)
if:

 

(x)         an event occurs and is continuing as a
result of which the Shelf Registration Statement would, in the Issuer’s
reasonable judgment, contain 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

 

7

 

(y)        the Issuer reasonably determines that
the disclosure of such event at such time would have a material adverse effect
on the business of the Issuer (and its subsidiaries, if any, taken as a whole);

 

provided,
that (A) in the event the disclosure relates to a previously undisclosed
proposed or pending material business transaction, the disclosure of which
would impede the Issuer’s ability to consummate such transaction, the Issuer
may extend a Suspension Period from 45 days to 60 days and (B) the Suspension
Periods shall not exceed an aggregate of 90 days in any 360-day period. Each
Holder, by its acceptance of a Registrable Security, agrees to hold in
confidence any communication by the Issuer relating to an event described in
Section 4(b)(i)(x) and (y) or Section 4(b)(iii)(D).

 

(ii)        Prepare and file with the Commission
such amendments and post-effective amendments to the Shelf Registration
Statement as may be necessary to keep the Shelf Registration Statement
effective during the Effectiveness Period; cause the Prospectus to be
supplemented by any required Prospectus supplement, and as so supplemented to
be filed pursuant to Rule 424 under the Securities Act, and to comply fully
with the applicable provisions of Rules 424 and 430A under the Securities Act
in a timely manner; and comply with the provisions of the Securities Act with
respect to the disposition of all securities covered by the Shelf Registration
Statement during the applicable period in accordance with the intended method
or methods of distribution by the sellers thereof set forth in the Shelf
Registration Statement or supplement to the Prospectus.

 

(iii)       Advise the underwriter(s), if any, and,
in the case of (A), (C) and (D) below, the selling Holders promptly and, if
requested by such Persons, to confirm such advice in writing:

 

(A)       when the Prospectus or any Prospectus
supplement or post-effective amendment has been filed, and, with respect to the
Shelf Registration Statement or any post-effective amendment thereto, when the
same has become effective,

 

(B)       of any request by the Commission for
amendments to the Shelf Registration Statement or amendments or supplements to
the Prospectus or for additional information relating thereto,

 

(C)       of the issuance by the Commission of any
stop order suspending the effectiveness of the Shelf Registration Statement
under the Securities Act or of the suspension by any state securities
commission of the qualification of the Registrable Securities for offering or
sale in any jurisdiction, or the initiation of any proceeding for any of the
preceding purposes, or

 

(D)       of the existence of any fact or the
happening of any event, during the Effectiveness Period, that makes any
statement of a material fact made in the Shelf Registration Statement, the
Prospectus, any amendment or supplement thereto, or any document incorporated
by reference therein untrue, or 

 

8

 

that requires the
making of any additions to or changes in the Shelf Registration Statement or
the Prospectus in order to make the statements therein not misleading.

 

If at any time the
Commission shall issue any stop order suspending the effectiveness of the Shelf
Registration Statement, or any state securities commission or other regulatory
authority shall issue an order suspending the qualification or exemption from
qualification of the Registrable Securities under state securities or Blue Sky
laws, the Issuer shall use its reasonable best efforts to obtain the withdrawal
or lifting of such order at the earliest possible time.

 

(iv)       Furnish to one counsel for the selling
Holders and each of the underwriter(s), if any, before filing with the
Commission, a copy of the Shelf Registration Statement and copies of any
Prospectus included therein or any amendments or supplements to either of the
Shelf Registration Statement or Prospectus (other than documents incorporated
by reference after the initial filing of the Shelf Registration Statement),
which documents will be subject to the review of such counsel and
underwriter(s), if any, for a period of two Business Days, and the Issuer will
not file the Shelf Registration Statement or Prospectus or any amendment or
supplement to the Shelf Registration Statement or Prospectus (other than
documents incorporated by reference) to which such counsel or the
underwriter(s), if any, shall reasonably object within two Business Days after
the receipt thereof. Such counsel or underwriter, if any, shall be deemed to
have reasonably objected to such filing if the Shelf Registration Statement,
amendment, Prospectus or supplement, as applicable, as proposed to be filed,
contains a material misstatement or omission.

 

(v)        Subject to the execution of a
confidentiality agreement reasonably acceptable to the Issuer, make available
at reasonable times for inspection by one or more representatives of the
selling Holders, designated in writing by a Majority of Holders whose
Registrable Securities are included in the Shelf Registration Statement, any
underwriter, if any, participating in any distribution pursuant to the Shelf
Registration Statement, and any attorney or accountant retained by the Majority
of Holders or any of the underwriter(s), all financial and other records,
pertinent corporate documents and properties of the Issuer as shall be
reasonably necessary to enable them to exercise any applicable due diligence
responsibilities, and cause the Issuer’s officers, directors, managers and
employees to supply all information reasonably requested by any such
representative or representatives of the selling Holders, underwriter, attorney
or accountant in connection with the Shelf Registration Statement after the
filing thereof and before its effectiveness; provided, however, that any
information designated by the Issuer as confidential at the time of delivery of
such information shall be kept confidential by the recipient thereof.

 

(vi)       If requested by any selling Holders or
the underwriter(s), if any, incorporate in the Shelf Registration Statement or
Prospectus, pursuant to a supplement or post-effective amendment if necessary,
such information as such selling Holders and underwriter(s), if any, may
reasonably request to have included therein, including, without limitation: (1)
information relating to the “Plan of Distribution” of the 

 

9

 

Registrable
Securities, (2) information with respect to the principal amount of Convertible
Notes or number of shares of Common Stock being sold, (3) the purchase price
being paid therefor and (4) any other terms of the offering of the Registrable
Securities to be sold in such offering; and make all required filings of such
Prospectus supplement or post-effective amendment as soon as reasonably
practicable after the Issuer is notified of the matters to be incorporated in
such Prospectus supplement or post-effective amendment.

 

(vii)      Furnish to each selling Holder and each of
the underwriter(s), if any, without charge, at least one copy of the Shelf
Registration Statement, as first filed with the Commission, and of each
amendment thereto (and any documents incorporated by reference therein or
exhibits thereto (or exhibits incorporated in such exhibits by reference) as
such Person may request in writing).

 

(viii)     Deliver to each selling Holder and each of
the underwriter(s), if any, without charge, as many copies of the Prospectus
(including each preliminary prospectus) and any amendment or supplement thereto
as such Persons reasonably may request; subject to any notice by the Issuer in
accordance with this Section 4(b) of the existence of any fact or event of the
kind described in Section 4(b)(iii)(D), the Issuer hereby consents to the use
of the Prospectus and any amendment or supplement thereto by each of the
selling Holders and each of the underwriter(s), if any, in connection with the
offering and the sale of the Registrable Securities covered by the Prospectus
or any amendment or supplement thereto.

 

(ix)        If an underwriting agreement is entered
into and the registration is an Underwritten Registration, the Issuer shall:

 

(A)       upon request, furnish to each selling
Holder and each underwriter, if any, in such substance and scope as they may
reasonably request and as are customarily made by issuers to underwriters in
primary underwritten offerings, upon the date of closing of any sale of
Registrable Securities in an Underwritten Registration:

 

(1)        a certificate, dated the date of such
closing, signed by (y) the Chairman of the Board, the President or a Vice
President and (z) the Chief Financial Officer of the Issuer confirming, as of
the date thereof, such matters as such parties may reasonably request;

 

(2)        opinions, each dated the date of such
closing, of counsel to the Issuer covering such matters as are customarily
covered in legal opinions to underwriters in connection with primary
underwritten offerings of securities; and

 

(3)        customary comfort letters, dated the
date of such closing, from the Issuer’s independent accountants (and from any other
accountants whose report is contained or incorporated by 

 

10

 

reference in the
Shelf Registration Statement), in the customary form and covering matters of
the type customarily covered in comfort letters to underwriters in connection
with primary underwritten offerings of securities;

 

(B)       set forth in full in the underwriting
agreement, if any, indemnification provisions and procedures which provide
rights no less protective than those set forth in Section 6 hereof with respect
to all parties to be indemnified; and

 

(C)       deliver such other documents and
certificates as may be reasonably requested by such parties to evidence
compliance with clause (A) above and with any customary conditions contained in
the underwriting agreement or other agreement entered into by the selling
Holders pursuant to this clause (ix).

 

(x)         Before any public offering of
Registrable Securities, cooperate with the selling Holders, the underwriter(s),
if any, and their respective counsel in connection with the registration and
qualification of the Registrable Securities under the securities or Blue Sky
laws of such jurisdictions as the selling Holders or underwriter(s), if any,
may reasonably request and do any and all other acts or things necessary or
advisable to enable the disposition in such jurisdictions of the Registrable
Securities covered by the Shelf Registration Statement; provided, however, that the
Issuer shall not be required (A) to register or qualify as a foreign corporation
or a dealer of securities where it is not now so qualified or to take any
action that would subject it to the service of process in any jurisdiction
where it is not now so subject or (B) to subject itself to taxation in any such
jurisdiction if it is not now so subject.

 

(xi)        Cooperate with the selling Holders and
the underwriter(s), if any, to facilitate the timely preparation and delivery
of certificates representing Registrable Securities to be sold and not bearing
any restrictive legends (unless required by applicable securities laws); and
enable such Registrable Securities to be in such denominations and registered
in such names as the Holders or the underwriter(s), if any, may reasonably
request at least two Business Days before any sale of Registrable Securities
made by such underwriter(s).

 

(xii)       Use its reasonable best efforts to cause
the Registrable Securities covered by the Shelf Registration Statement to be
registered with or approved by such other U.S. governmental agencies or
authorities as may be necessary to enable the seller or sellers thereof or the
underwriter(s), if any, to consummate the disposition of such Registrable
Securities, subject to the proviso in clause (x) above.

 

(xiii)      Subject to Section 4(b)(i) hereof, if any
fact or event contemplated by Section 4(b)(iii)(D) hereof shall exist or have
occurred, use its reasonable best efforts prepare a supplement or
post-effective amendment to the Shelf Registration Statement or related
Prospectus or any document incorporated therein by reference or file any other
required document so that, as thereafter delivered to the purchasers of
Registrable 

 

11

 

Securities, the
Prospectus will not contain an 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.

 

(xiv)     Provide CUSIP numbers for all Registrable
Securities not later than the effective date of the Shelf Registration
Statement and provide the Trustee under the Indenture with certificates for the
Convertible Notes that are in a form eligible for deposit with The Depository
Trust Company.

 

(xv)      Cooperate and assist in any filings
required to be made with the NASD and in the performance of any due diligence
investigation by any underwriter that is required to be retained in accordance
with the rules and regulations of the NASD.

 

(xvi)     Otherwise use its reasonable best efforts
to comply with all applicable rules and regulations of the Commission and all
reporting requirements under the rules and regulations of the Exchange Act.

 

(xvii)    Cause the Indenture to be qualified under
the TIA not later than the effective date of the Shelf Registration Statement
required by this Agreement, and, in connection therewith, cooperate with the
Trustee and the holders of Convertible Notes to effect such changes to the
Indenture as may be required for such Indenture to be so qualified in
accordance with the terms of the TIA; and execute and use its reasonable best
efforts to cause the Trustee thereunder to execute all documents that may be
required to effect such changes and all other forms and documents required to
be filed with the Commission to enable such Indenture to be so qualified in a
timely manner.

 

(xviii)   Cause all Registrable Securities covered by
the Shelf Registration Statement to be listed or quoted, as the case may be, on
each securities exchange or automated quotation system on which securities
issued by the Issuer of the same series are then listed or quoted.

 

(xix)      Provide promptly to each Holder upon
written request each document filed with the Commission pursuant to the
requirements of Section 13 and Section 15 of the Exchange Act after the
effective date of the Shelf Registration Statement, unless such documents are
available from EDGAR.

 

(xx)       If requested by the underwriters in an
Underwritten Offering, make appropriate officers of the Issuer reasonably
available to the underwriters for meetings with prospective purchasers of the
Registrable Securities and prepare and present to potential investors customary
“road show” material in a manner consistent with other new issuances of other
securities similar to the Registrable Securities.

 

(c)        Each Holder agrees by acquisition of a
Registrable Security that, upon receipt of any notice from the Issuer of the
existence of any fact of the kind described in Section 4(b)(iii)(D) hereof,
such Holder will, and will use its reasonable best efforts to cause any
underwriter(s) in an Underwritten Offering to, forthwith discontinue
disposition of Registrable Securities pursuant to the Shelf Registration
Statement until:

 

12

 

(i)         such Holder has received copies of the
supplemented or amended Prospectus contemplated by Section 4(b)(xiii)
hereof; or

 

(ii)        such Holder is advised in writing (the “Advice”) by
the Issuer that the use of the Prospectus may be resumed, and has received
copies of any additional or supplemental filings that are incorporated by
reference in the Prospectus.

 

If so directed by
the Issuer, each Holder will deliver to the Issuer (at the Issuer’s expense)
all copies, other than permanent file copies then in such Holder’s possession,
of the Prospectus covering such Registrable Securities that was current at the
time of receipt of such notice of suspension.

 

(d)        Each Holder who intends to be named as a
selling Holder in the Shelf Registration Statement shall furnish to the Issuer
in writing, within 20 Business Days after receipt of a request therefor as set
forth in a questionnaire in the form attached hereto as Annex A, such
information regarding such Holder and the proposed distribution by such Holder
of its Registrable Securities as the Issuer may reasonably request for use in
connection with the Shelf Registration Statement or Prospectus or preliminary
Prospectus included therein. Holders that do not complete the questionnaire and
deliver it to the Issuer shall not be named as selling securityholders in the
Prospectus or preliminary Prospectus included in the Shelf Registration
Statement and therefore shall not be permitted to sell any Registrable
Securities pursuant to the Shelf Registration Statement. Each Holder who
intends to be named as a selling Holder in the Shelf Registration Statement shall
promptly furnish to the Issuer in writing all information required to be
disclosed in order to make information previously furnished to the Issuer by
such Holder not materially misleading and such other information as the Issuer
may from time to time reasonably request in writing.

 

(e)        Upon the effectiveness of the Shelf
Registration Statement, each Holder shall notify the Issuer at least three
Business Days prior to any intended distribution of Registrable Securities
pursuant to the Shelf Registration Statement (a “Sale Notice”), which notice shall
be effective for five Business Days. Each Holder of this Security, by accepting
the same, agrees to hold any communication by the Issuer in response to a Sale
Notice in confidence.

 

5.          Registration
Expenses.

 

(a)        All expenses incident to the Issuer’s
performance of or compliance with this Agreement shall be borne by the Issuer
regardless of whether a Shelf Registration Statement becomes effective,
including, without limitation:

 

(i)         all registration and filing fees and
expenses (other than filings made by any Initial Purchasers or Holders with the
NASD);

 

(ii)        all fees and expenses of compliance with
federal securities and state Blue Sky or securities laws;

 

13

 

(iii)       all expenses of printing (including
printing of Prospectuses and certificates for the Common Stock to be issued
upon conversion of the Convertible Notes), messenger and delivery services, and
telephone;

 

(iv)       all reasonable fees and disbursements of
counsel to the Issuer and, subject to Section 5(b) below, the Holders of
Registrable Securities;

 

(v)        all application and filing fees in
connection with listing (or authorizing for quotation) the Common Stock on a
national securities exchange or automated quotation system pursuant to the
requirements hereof; and

 

(vi)       all fees and disbursements of independent
certified public accountants of the Issuer (including the expenses of any
special audit and comfort letters required by or incident to such performance).

 

The Issuer shall
bear its internal expenses (including, without limitation, all salaries and
expenses of its officers and employees performing legal, accounting or other
duties), the expenses of any annual audit and the fees and expenses of any
Person, including special experts, retained by the Issuer.

 

(b)        In connection with the Shelf
Registration Statement required by this Agreement, the Issuer shall reimburse
the Initial Purchasers and the Holders of Registrable Securities being
registered pursuant to the Shelf Registration Statement, as applicable, for the
reasonable fees and disbursements of not more than one counsel, which shall be
Vinson & Elkins L.L.P. or such other chosen by a Majority of Holders for
whose benefit the Shelf Registration Statement is being prepared and is
reasonably acceptable to the Issuer. The Issuer shall not be required to pay
any underwriter discount, commission or similar fees related to the sale of the
Securities.

 

6.          Indemnification
and Contribution.

 

(a)        The Issuer shall indemnify and hold
harmless each Holder, such Holder’s directors, officers, employees,
representatives, agents and each person, if any, who controls such Holder
within the meaning of Section 15 of the Securities Act (each, an “Indemnified Holder”),
from and against any loss, claim, damage or liability, joint or several, or any
action in respect thereof (including, but not limited to, any loss, claim,
damage, liability or action relating to resales of the Registrable Securities),
to which such Indemnified Holder may become subject, under the Securities Act
or otherwise, insofar as any 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 (A) the Shelf Registration Statement
or Prospectus or any amendment or supplement thereto or (B) any blue sky
application or other document or any amendment or supplement thereto prepared
or executed by the Issuer (or based upon written information furnished by or on
behalf of the Issuer expressly for use in such blue sky application or other
document or amendment on supplement) filed in any jurisdiction specifically for
the purpose of qualifying any or all of the Registrable Securities under the 

 

14

 

securities law of
any state or other jurisdiction (such application or document being hereinafter
called a “Blue Sky
Application”); or

 

(ii)        the omission or alleged omission to
state in the Shelf Registration Statement any material fact required to be
stated therein or necessary to make the statements therein not misleading, or
the omission or alleged omission to state in the Prospectus 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, and
shall reimburse each Indemnified Holder promptly upon demand for any legal or
other expenses reasonably incurred by such Indemnified Holder in connection
with investigating or defending or preparing to defend against any such loss,
claim, damage, liability or action as such expenses are incurred; provided, however,
that the Issuer 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,
any untrue statement or alleged untrue statement or omission or alleged
omission made in the Shelf Registration Statement or Prospectus or amendment or
supplement thereto or Blue Sky Application in reliance upon and in conformity
with written information furnished to the Issuer by or on behalf of any Holder
(or its related Indemnified Holder) specifically for use therein; provided, further, that as to any
preliminary Prospectus, this indemnity agreement shall not inure to the benefit
of any Indemnified Holder or any officer, employee, representative, agent,
director or controlling person of that Indemnified Holder on account of any
loss, claim, damage, liability or action arising from the sale of the
Registrable Securities sold pursuant to the Shelf Registration Statement to any
person by such Indemnified Holder if (i) that Indemnified Holder failed to send
or give a copy of the Prospectus, as the same may be amended or supplemented,
to that person within the time required by the Securities Act and (ii) the
untrue statement or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact in such preliminary Prospectus was
corrected in the Prospectus or a supplement or amendment thereto, as the case
may be, unless in each case, such failure resulted from noncompliance by the
Issuer with Section 4. The foregoing indemnity agreement is in addition to any
liability that the Issuer may otherwise have to any Indemnified Holder.

 

(b)        Each Holder, severally and not jointly,
shall indemnify and hold harmless the Issuer, its directors, officers,
employees, representatives, agents and each person, if any, who controls the
Issuer within the meaning of Section 15 of the Securities Act or Section 20 of
the Exchange Act, from and against any loss, claim, damage or liability, joint
or several, or any action in respect thereof, to which the Issuer or any such
officer, employee, representative, agent or controlling person may become
subject, insofar as any such loss, claim, damage or liability or action arises
out of, or is based upon:

 

(i)         any untrue statement or alleged untrue
statement of any material fact contained in the Shelf Registration Statement or
Prospectus or any amendment or supplement thereto or any Blue Sky Application;
or

 

(ii)        the omission or the alleged omission to
state in the Shelf Registration Statement any material fact required to be
stated therein or necessary to make the statements therein not misleading, or
the omission or alleged omission to state 

 

15

 

in the Prospectus
any material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading, but in each case only to the extent that such untrue statement
or alleged untrue statement or omission or alleged omission was made in
reliance upon and in conformity with written information furnished to the
Issuer by or on behalf of such Holder (or its related Indemnified Holder)
specifically for use therein, and shall reimburse the Issuer and any such
director, officer, employee, representative, agent or controlling person
promptly upon demand for any legal or other expenses reasonably incurred by the
Issuer or any such officer, employee or controlling person in connection with
investigating or defending or preparing to defend against any such loss, claim,
damage, liability or action as such expenses are incurred. The foregoing
indemnity agreement is in addition to any liability that any Holder may
otherwise have to the Issuer and any such director, officer, employee or
controlling person.

 

(c)        Promptly after receipt by an indemnified
party under this Section 6 of notice of any claim or the commencement of any
action, the indemnified party shall, if a claim in respect thereof is to be
made against the indemnifying party under this Section 6, notify the
indemnifying party in writing of the claim or the commencement of that action; 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 it has
been materially prejudiced 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 claim or action shall be brought against an indemnified
party, and it shall notify the indemnifying party thereof, the indemnifying
party shall be entitled to participate therein and, to the extent that it
wishes, jointly with any other similarly notified indemnifying party, to assume
the defense thereof with counsel satisfactory to the indemnified party. After
notice from the indemnifying party to the indemnified party of its election to
assume the defense of such claim or action, the indemnifying party shall not be
liable to the indemnified party under this Section 6 for any legal or other
expenses subsequently incurred by the indemnified party in connection with the
defense thereof other than reasonable costs of investigation; provided, however,
that the indemnified party shall have the right to employ counsel to represent
jointly the indemnified party and its respective directors, employees, officers
and controlling persons who may be subject to liability arising out of any
claim in respect of which indemnity may be sought by the indemnified party
against the indemnifying party under this Section 6 if such indemnified party
shall have been advised in writing that the representation of such indemnified
party and those directors, employees, officers and controlling persons by the
same counsel would be inappropriate under applicable standards of professional
conduct due to actual or potential differing interests between them, and in
that event the fees and expenses of such separate counsel shall be paid by the
indemnifying party. It is understood that the indemnifying party shall not be
liable for the fees and expenses of more than one separate firm (in addition to
local counsel in each jurisdiction) for all indemnified parties in connection
with any proceeding or related proceedings. Each indemnified party, as a
condition of the indemnity agreements contained in Sections 6(a) and 6(b),
shall use its reasonable best efforts to cooperate with the indemnifying party
in the defense of any such action or claim. No indemnifying party shall:

 

16

 

(i)         without the prior written consent of
the indemnified parties (which consent shall not be unreasonably withheld)
effect any settlement of any pending or threatened action in respect of which
indemnification or contribution may be sought hereunder (whether or not the
indemnified parties are actual or potential parties to such claim or action)
unless such settlement, compromise or consent includes an unconditional release
of such indemnified party from all liability arising out of such claim, action,
suit or proceeding and does not include a statement as to or an admission of
fault, culpability or failure to act by or on behalf of any indemnified party,
or

 

(ii)        be liable for any settlement of any such
action effected without its written consent (which consent shall not be
unreasonably withheld), but if settled with its written consent or if there be
a final judgment for the plaintiff in any such action, the indemnifying party
agrees to indemnify and hold harmless any indemnified party from and against
any loss of liability by reason of such settlement or judgment in accordance
with this Section 6.

 

(d)        If the indemnification provided for in
this Section 6 is unavailable or insufficient to hold harmless an indemnified
party under subsections (a) or (b) above, then each indemnifying party shall
contribute to the amount paid or payable by such indemnified party as a result
of the losses, claims, damages or liabilities (or actions in respect thereof)
referred to in subsection (a) or (b) above (i) in such proportion as is
appropriate to reflect the relative benefits received by the indemnifying party
or parties on the one hand and the indemnified party on the other from the
registration of the Registrable Securities pursuant to the Shelf Registration,
or (ii) if the allocation provided by the foregoing clause (i) 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 indemnifying party or parties on the one hand and the indemnified party
on the other in connection with the statements or omissions that resulted in
such losses, claims, damages or liabilities (or actions in respect thereof) as
well as any other relevant equitable considerations. The relative fault of the
parties 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 information supplied by
the Issuer on the one hand or such Holder or such other indemnified party, as
the case may be, on the other, and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission. The amount paid by an indemnified party as a result of the losses,
claims, damages or liabilities referred to in the first sentence of this
subsection (d) shall be deemed to include any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating
or defending any action or claim which is the subject of this subsection (d).
Notwithstanding any other provision of this Section 6(d), the Holders of the
Registrable Securities shall not be required to contribute any amount in excess
of the amount by which the gross proceeds received by such Holders from the
sale of the Registrable Securities pursuant to the Shelf Registration Statement
exceeds the amount of damages which such Holders have otherwise been required
to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such 

 

17

 

fraudulent
misrepresentation. For purposes of this paragraph (d), each person, if any, who
controls such indemnified party within the meaning of the Securities Act or the
Exchange Act shall have the same rights to contribution as such indemnified
party and each person, if any, who controls the Issuer within the meaning of
the Securities Act or the Exchange Act shall have the same rights to
contribution as the Issuer.

 

(e)        The indemnity and contribution
provisions contained in this Section 6 shall remain operative and in full force
and effect regardless of (i) any termination of this Agreement, (ii) any
investigation made by or on behalf of any Initial Purchaser, any Holder or any
person controlling any Initial Purchaser or any Holder, or by or on behalf of
the Issuer, its officers or directors or any person controlling the Issuer, and
(iii) any sale of Registrable Securities pursuant to the Shelf Registration
Statement.

 

7.          Rule 144A.

 

In the event the
Issuer is not subject to Section 13 or 15(d) of the Exchange Act, the Issuer
hereby agrees with each Holder, for so long as any Registrable Securities
remain outstanding, to make available to any Holder or beneficial owner of
Registrable Securities in connection with any sale thereof and any prospective
purchaser of such Registrable Securities from such Holder or beneficial owner,
the information required by Rule 144A(d)(4) under the Securities Act in order
to permit resales of such Registrable Securities pursuant to Rule 144A.

 

8.          Underwritten
Registrations.

 

(a)        The Underwriting Majority may sell its
Registrable Securities in an Underwritten Offering pursuant to the Shelf
Registration Statement only with the Issuer’s consent, which consent may be
granted or withheld in the Issuer’s sole discretion.

 

(b)        Participation of Holders. No
Holder may participate in any Underwritten Registration hereunder unless such
Holder:

 

(i)         agrees to sell such Holder’s
Registrable Securities on the basis provided in any underwriting arrangements
approved by the Persons entitled hereunder to approve such arrangements; and

 

(ii)        completes and executes all reasonable
questionnaires, powers of attorney, indemnities, underwriting agreements,
lock-up letters and other documents reasonably required under the terms of such
underwriting arrangements.

 

(c)        Selection of Underwriters. In any
such Underwritten Offering, the investment banker or investment bankers and
manager or managers that will administer the offering will be selected by a
Majority of Holders whose Registrable Securities are included in such
Underwriting Offering; provided, that such investment bankers and managers must
be reasonably satisfactory to the Issuer.

 

18

 

9.          Miscellaneous.

 

(a)        Remedies. The Issuer acknowledges
and agrees that any failure by the Issuer to comply with its obligations under
Section 2 hereof may result in material irreparable injury to the Initial
Purchasers or the Holders for which there is no adequate remedy at law, that it
will not be possible to measure damages for such injuries precisely and that,
in the event of any such failure, the Initial Purchasers or any Holder may
obtain such relief as may be required to specifically enforce the Issuer’s
obligations under Section 2 hereof. The Issuer further agrees to waive the
defense in any action for specific performance that a remedy at law would be
adequate.

 

(b)        No Inconsistent Agreements. The
Issuer will not, on or after the date of this Agreement, enter into any
agreement with respect to its securities that is inconsistent with the rights
granted to the Holders in this Agreement or otherwise conflicts with the
provisions hereof. In addition, the Issuer shall not grant to any of its
security holders (other than the holders of Registrable Securities in such
capacity) the right to include any of its securities in the Shelf Registration
Statement provided for in this Agreement other than the Registrable Securities.
Other than as disclosed in the Issuer’s Offering Memorandum dated December 12,
2001, the Issuer has not previously entered into any agreement (which has not
expired or been terminated) granting any registration rights with respect to
its securities to any Person, which rights conflict with the provisions hereof.

 

(c)        Adjustments Affecting Registrable
Securities. The Issuer shall not, directly or indirectly, take any
action with respect to the Registrable Securities as a class that would
adversely affect the ability of the Holders of Registrable Securities to
include such Registrable Securities in a registration undertaken pursuant to
this Agreement.

 

(d)        Amendments and Waivers. This
Agreement may not be amended, modified or supplemented, and waivers or consents
to or departures from the provisions hereof may not be given, unless the Issuer
has obtained the written consent of a Majority of Holders; provided, however,
that no amendment, modification, supplement, waiver or consent to or departure
from the provisions of Section 6 that materially and adversely affects a Holder
hereof shall be effective as against any such Holder of Registrable Securities
unless consented to in writing by such Holder.

 

(e)        Notices. All notices and other
communications provided for or permitted hereunder shall be made in writing by
hand-delivery, first-class mail (registered or certified, return receipt
requested), telex, telecopier, or air courier guaranteeing overnight delivery:

 

(i)         if to a Holder, at the address set
forth on the records of the registrar under the Indenture or the transfer agent
of the Common Stock, as the case may be; and

 

19

 

(ii)        if to the Issuer:

 

Evergreen
Resources, Inc. 

1401 17th Street 

Denver, Colorado
80202 

Fax No.:  (303) 295-7895

Attention:  Kevin R. Collins

 

With a copy to:

 

Womble Carlyle
Sandridge & Rice, PLLC 

3300 One First
Union Center

301 South College
Street

Charlotte, North
Carolina 28202

Fax No.: (704)
338-7814

Attention:  Douglas A. Mays

 

(iii)       if to the Initial Purchasers:

 

c/o Bear, Stearns
& Co. Inc.

383 Madison Avenue

New York, New York
10179

Fax No.:  (212) 272-3092 

Attention:  Convertible Capital Markets

 

With a copy to:

 

Vinson &
Elkins L.L.P.

666 Fifth Avenue,
27th Floor 

New York, New
York  10103 

Fax No.:  (917) 206-8100 

Attention:  Alan P. Baden

 

All such notices
and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; five Business Days after being
deposited in the mail, postage prepaid, if mailed; when answered back, if
telexed; when receipt acknowledged, if telecopied; and on the next Business
Day, if timely delivered to an air courier guaranteeing overnight delivery.

 

Copies of all such
notices, demands or other communications shall be concurrently delivered by the
Person giving the same to the Trustee at the address specified in the
Indenture.

 

A document or
notice shall be deemed to have been furnished to the Holders of the Registrable
Securities if it is provided to the registered holders of the Registrable
Securities at the address set forth in clause (i) above.

 

20

 

(f)         Successors and Assigns. This
Agreement shall inure to the benefit of and be binding upon the successors,
assigns and transferees of each of the parties, including without limitation
and without the need for an express assignment, subsequent Holders of
Registrable Securities; provided, however, that (i) nothing contained herein shall
be deemed to permit any assignment, transfer or other disposition of
Registrable Securities in violation of the terms of the Purchase Agreement or
the Indenture and (ii) this Agreement shall not inure to the benefit of or be
binding upon a successor or assign of a Holder unless and to the extent such
successor or assign acquired Registrable Securities from such Holder. 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. The
Initial Purchasers (in their capacity as Initial Purchasers) shall have no
liability or obligation to the Issuer with respect to any failure by a Holder
to comply with, or breach by any Holder of, any of the obligations of such
Holder under this Agreement.

 

(g)        Purchases and Sales of Convertible Notes. The
Issuer shall not, and shall use its reasonable best efforts to cause its
affiliates (as defined in Rule 405 under the Securities Act) within its Control
not to, resell or otherwise transfer any Convertible Notes acquired by the
Company or such affiliates, except pursuant to an effective registration
statement under the Securities Act or an exemption therefrom.

 

(h)        Third Party Beneficiary. The
Holders shall be third party beneficiaries to the agreements made hereunder
between the Issuer and the Initial Purchasers, and such Initial Purchasers
shall have the right to enforce such agreements directly to the extent they
deem such enforcement necessary or advisable to protect their rights or the
rights of Holders hereunder.

 

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

 

(j)         Securities Held by the Issuer or Their
Affiliates. Whenever the consent or approval of Holders of a
specified percentage of Registrable Securities is required hereunder,
Registrable Securities held by the Issuer or its affiliates (as such term is
defined in Rule 405 under the Securities Act) shall not be counted in
determining whether such consent or approval was given by the Holders of such
required percentage.

 

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

 

(l)         Governing Law. This agreement shall be coverned by, and construed in
accordance with, the laws of the State of New York.

 

21

 

(m)       Consent to Jurisdiction. Each
party irrevocably agrees that any legal suit, action or proceeding arising out
of or based upon this Agreement or the transactions contemplated hereby (“Related Proceedings”)
may be instituted in the federal courts of the United States of America located
in the City of New York or the courts of the State of New York in each case
located in the Borough of Manhattan in the City of New York (collectively, the
“Specified Courts”),
and irrevocably submits to the exclusive jurisdiction (except for proceedings
instituted in regard to the enforcement of a judgment of any such court (a “Related Judgment”),
as to which such Jurisdiction is non-exclusive) of such courts in any such
suit, action or proceeding. The parties further agree that service of any
process, summons, notice or document by mail to such party’s address set forth
above shall be effective service of process for any lawsuit, action or other
proceeding brought in any such court. The parties hereby irrevocably and
unconditionally waive any objection to the laying of venue of any lawsuit,
action or other proceeding in the Specified Courts, and hereby further
irrevocably and unconditionally waive and agree not to plead or claim in any
such court that any such lawsuit, action or other proceeding brought in any
such court has been brought in an inconvenient forum.

 

(n)        Severability. If any one or more
of the provisions contained herein, or the application thereof in any
circumstance, is held invalid, illegal or unenforceable, the validity, legality
and enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired
thereby.

 

(o)        Entire Agreement. This Agreement,
together with the Purchase Agreement and the Indenture, is intended by the
parties as a final expression of their agreement and intended to be a complete
and exclusive statement of the agreement and understanding of the parties
hereto in respect of the subject matter contained herein. There are no restrictions,
promises, warranties or undertakings, other than those set forth or referred to
herein with respect to the registration rights granted by the Issuer with
respect to the Registrable Securities. This Agreement supersedes all prior
agreements and understandings between the parties with respect to such subject
matter.

 

[Signature page to
follow]

 

22

 

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

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  EVERGREEN RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  

 

The foregoing
Registration Rights Agreement is hereby confirmed and accepted as of the date
first above written.

 

	
   

  	
  BEAR, STEARNS
  & CO. INC.,

  
	
   

  	
   

  	
  on behalf of the
  Initial Purchasers

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  

 

23

 

ANNEX A

 

Evergreen
Resources, Inc.

Notice of Registration Statement

and Selling Securityholder Election and Questionnaire

 

Notice

 

Evergreen
Resources, Inc. (the “Company”) has filed, or intends shortly to file, with the
Securities and Exchange Commission (the “Commission”) a registration
statement on Form S-3 or such other Form as may be available (the “Shelf Registration
Statement”) for the registration and resale under Rule 415 of the
Securities Act of 1933, as amended (the “Securities Act”), of the
Company’s 4.75% Senior Convertible Notes due 2021 (CUSIP No. 299-900-AA8) (the
“Notes”),
and common stock, no par value per share, issuable upon conversion and thereof
(the “Shares”
and together with the Notes, the “Transfer Restricted Securities”) in accordance with the
terms of the Registration Rights Agreement, dated as of December 18, 2001 (the
“Registration
Rights Agreement”) between the Company and Bear, Stearns & Co.
Inc., First Union Securities, Inc., UBS Warburg LLC, Jefferies & Company,
Inc. and Stifel, Nicolaus & Company, Incorporated.  A copy of the Registration Rights Agreement
is available from the Company. All capitalized terms not otherwise defined
herein have the meaning ascribed thereto in the Registration Rights Agreement.

 

To sell or otherwise
dispose of any Transfer Restricted Securities pursuant to the Shelf
Registration Statement, a beneficial owner of Transfer Restricted Securities
generally will be required to be named as a selling securityholder in the
related Prospectus, deliver a Prospectus to purchasers of Transfer Restricted
Securities, be subject to certain civil liability provisions of the Securities
Act and be bound by those provisions of the Registration Rights Agreement
applicable to such beneficial owner (including certain indemnification rights
and obligations, as described below). To be included in the Shelf Registration
Statement, this Election and Questionnaire must be completed, executed and
delivered to the Company at the address set forth herein for receipt prior to or on the 20th
business day from the receipt hereof (the “Election and Questionnaire Deadline”).  Beneficial
Owners that do not complete and return this Election and Questionnaire prior to
the Election and Questionnaire Deadline and deliver it to the Company as
provided below will not be named as Selling Securityholders in the Shelf
Registration Statement and therefore will not be permitted to sell any Trnasfer
Restricted Securities pursuant to the Shelf Registration Statement.

 

Certain legal
consequences arise from being named as a selling securityholder in the Shelf
Registration Statement and the related Prospectus. Accordingly, holders and
beneficial owners of Transfer Restricted Securities are advised to consult
their own securities law counsel regarding the consequences of being named or
not being named as a selling securityholder in the Shelf Registration Statement
and the related Prospectus.

 

A-1

 

ELECTION

 

The undersigned
holder (the “Selling
Securityholder”) of Transfer Restricted Securities hereby elects to
include in the Shelf Registration Statement the Transfer Restricted Securities
beneficially owned by it and listed below in Item 3 (unless otherwise specified
under Item 3). The undersigned, by signing and returning this Election and
Questionnaire, understands that it will be bound with respect to such Transfer
Restricted Securities by the terms and conditions of this Election and
Questionnaire and the Registration Rights Agreement.

 

Pursuant to the
Registration Rights Agreement, the Selling Securityholder has agreed to
indemnify and hold harmless the Company, the Company’s directors, the Company’s
officers, employees, representatives and agents who sign the Shelf Registration
Statement and each person, if any, who controls the Company within the meaning
of either Section 15 of the Securities Act or Section 20 of the Exchange
Act, from and against certain losses arising in connection with statements
concerning the Selling Securityholder made in the Shelf Registration Statement
or the related Prospectus in reliance upon the information provided in this
Election and Questionnaire.

 

The Selling
Securityholder hereby provides the following information to the Company and
represents and warrants that such information is accurate and complete:

 

QUESTIONNAIRE

 

1.        (a)       Full
Legal Name of Selling Securityholder:

	
   

  	
   

  

 

(b)      Full legal name of registered holder (if
not the same as (a) above) through which Transfer Restricted Securities listed
in (3) below are held:

	
   

  	
   

  

 

(c)       Full legal name of DTC participant (if
applicable and if not the same as (b) above) through which Transfer Restricted
Securities listed in (3) are held:

	
   

  	
   

  

 

2.        Address for notices to Selling
Securityholders:

 

	
   

  	
   

  
	
   

  	
   

  

 

	
  Telephone:

  	
   

  	
   

  	
  Fax:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contact Person:

  	
   

  

 

 

A-2

 

3.          Beneficial ownership of Transfer
Restricted Securities:

 

(a)        Type of Transfer Restricted Securities
beneficially owned, and principal amount of Notes or Number of shares of Common
Stock, as the case may be, beneficially owned:

 

(b)        CUSIP No(s). of such Transfer Restricted
Securities beneficially owned:

 

4.          Beneficial ownership of the Company’s
securities owned by the Selling Securityholder:

 

EXCEPT AS SET
FORTH BELOW IN THIS ITEM (4), THE UNDERSIGNED IS NOT THE BENEFICIAL OR
REGISTERED OWNER OF ANY SECURITIES OF THE COMPANY OTHER THAN THE TRANSFER
RESTRICTED SECURITIES LISTED ABOVE IN ITEM (3) (“Other Securities”).

 

(a)        Type and amount of Other Securities
beneficially owned by the Selling Securityholder:

 

	
   

  	
   

  

 

(b)        CUSIP No(s). of such Other Securities
beneficially owned:

 

	
   

  	
   

  

 

5.          Relationship with the Company

 

Except as set
forth below, neither the undersigned nor any of its affiliates, officers,
directors or principal equity holders (5% or more) has held any position or
office or has had any other material relationship with the Company (or their
predecessors or affiliates) during the past three years.

 

State any exceptions
here:

 

	
   

  	
   

  

 

6.          Plan of Distribution:

 

Except as set
forth below, the undersigned (including its donees or pledgees) intends to
distribute the Transfer Restricted Securities listed above in Item (3) pursuant
to the Shelf Registration Statement only as follows (if at all). Such Transfer
Restricted Securities may be sold from time to time directly by the undersigned
or, alternatively, through underwriters, broker-dealers or agents. If the
Transfer Restricted Securities are sold through underwriters or broker-dealers,
the Selling Securityholder will be responsible for underwriting discounts or
commissions or agent’s commissions. Such Transfer Restricted Securities may be
sold in one or more transactions at fixed prices, at prevailing market prices
at the time of sale, at varying prices determined at the time of sale, or at
negotiated prices. Such sales may be effected in transactions (which may
involve crosses or block transactions):

 

 

A-3

 

(i)         on any national securities exchange or
quotation service on which the Transfer Restricted Securities may be listed or
quoted at the time of sale;

 

(ii)        in the over-the-counter market;

 

(iii)       in transactions otherwise than on such
exchanges or services or in the over-the-counter market; or

 

(iv)       through the writing of options.

 

In connection with
sales of the Transfer Restricted Securities or otherwise, the undersigned may
enter into hedging transactions with broker-dealers, which may in turn engage
in short sales of the Transfer Restricted Securities and deliver Transfer
Restricted Securities to close out such short positions, or loan or pledge
Transfer Restricted Securities to broker-dealers that in turn may sell such
securities. State any exceptions here:

 

	
   

  	
   

  
	
   

  	
   

  

 

Note: In no event
will such method(s) of distribution take the form of an underwritten offering
of the Transfer Restricted Securities without the prior agreement of the
Company.

 

By signing below,
the Selling Securityholder acknowledges that it understands its obligation to
comply, and agrees it will comply, with the provisions of the prospectus
delivery and other provisions of the Securities Act and Exchange Act and the
respective rules and regulations promulgated thereunder, particularly
Regulation M thereunder (or any successor rules or regulations), in connection
with any offering of Transfer Restricted Securities pursuant to the Shelf
Registration Statement.

 

If the Selling
Securityholder transfers all or any portion of the Transfer Restricted
Securities listed in Item 3 above after the date on which such information is
provided to the Company, the Selling Securityholder agrees to notify the
transferee(s) at the time of the transfer of its rights and obligations under
this Election and Questionnaire and the Registration Rights Agreement.

 

By signing below,
the Selling Securityholder consents to the disclosure of the information
contained herein in its answers to Items (1) through (6) above and the
inclusion of such information in the Shelf Registration Statement and the
related Prospectus. The Selling Securityholder understands that such
information will be relied upon by the Company in connection with the
preparation or amendment of the Shelf Registration Statement and the related
Prospectus.

 

In accordance with
the Selling Securityholder’s obligation under the Registration Rights Agreement
to provide such information as may be required by law for inclusion in the
Shelf Registration Statement, the Selling Securityholder agrees to promptly
notify the Company of any inaccuracies or changes in the information provided
herein that may occur subsequent to the date hereof at any time while the Shelf
Registration Statement remains effective. All notices 

 

 

A-4

 

hereunder and
pursuant to the Registration Rights Agreement shall be made in writing at the
address set forth below.

 

Once this Election
and Questionnaire is executed by the Selling Securityholders and received by
the Company, the terms of this Election and Questionnaire and the
representations and warranties contained herein shall be binding on, shall
inure to the benefit of and shall be enforceable by the respective successors,
heirs, personal representatives and assigns of the Company and the Selling
Securityholder with respect to the Transfer Restricted Securities beneficially
owned by such Selling Securityholder and listed in Item 3 above. This Agreement
shall be governed by, and construed in accordance with, the laws of the State
of New York.

 

IN WITNESS WHEREOF,
the undersigned, by authority duly given, has caused this Election and
Questionnaire to be executed and delivered either in person or by its
authorized agent.

 

	
  Dated:

  	
   

  
	
   

  	
  Beneficial Owner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  

 

Please return the
completed and executed Election and Questionnaire for receipt PRIOR TO OR ON
THE 20TH BUSINESS DAY FROM RECEIPT HEREOF to Evergreen Resources, Inc. at:

 

Evergreen
Resources, Inc.

1401 17th Street

Suite 1200

Denver, Colorado
80202

Attention:  Chief Financial Officer

 

A-5

 

EXHIBIT 1 TO ANNEX A

 

NOTICE TO TRANSFER PURSUANT

TO REGISTRATION STATEMENT

 

Evergreen
Resources, Inc.

1401 17th Street

Suite 1200

Denver,
Colorado  80202

 

First Union
National Bank

Corporate Trust

5847 San Felipe,
Suite 1050

Houston, Texas
77057

Attention:
Institutional Trust Services

 

Re:                     Evergreen
Resources, Inc.’s

4.75% Senior Convertible Notes due 2021 (the “Notes”)

 

Dear Sirs:

 

Please be advised
that __________ has transferred $_________ aggregate principal amount of the
above-referenced Notes or ____________________________ shares of the Company’s
Common Stock issued on conversion or repurchase of Notes, pursuant to the
Registration Statement on Form S-3 (File No. 333- __________ ) filed by the Company.

 

We hereby certify
that the prospectus delivery requirements, if any, of the Securities Act of
1933, as amended, have been satisfied with respect to the transfer described
above and that the above named beneficial owner of the Notes or Common Stock is
named as a selling securityholder in the Prospectus dated _____________________
, or in amendments or supplements thereto, and that the aggregate principal
amount of the Notes or number of shares of Common Stock transferred are [all or
a portion of] the Notes or Common Stock listed in such Prospectus, as amended
or supplemented, opposite such owner’s name.

 

	
   

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [name]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Authorized signature)

  	
   

  
	
  Dated: 

  	
   

  	
   

  	
   

  	
   

  
						

 

A-6

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