Document:

Exhibit 4.1

 

 

MEDIMMUNE, INC.

and

THE BANK OF NEW YORK

as Trustee

 

 

INDENTURE

Dated as of June 28, 2006

 

 

$500,000,000
Principal Amount

1.375% CONVERTIBLE SENIOR NOTES DUE 2011

 

 

 

 

CROSS-REFERENCE TABLE

	
  TIA

  	
   

  	
  Indenture

  	
   

  
	
  Section

  	
   

  	
  Section

  	
   

  
	
  310(a)(1)

  	
   

  	
   7.10

  	
   

  
	
       (a)(2)

  	
   

  	
   7.10

  	
   

  
	
       (a)(3)

  	
   

  	
  N.A.

  	
   

  
	
       (a)(4)

  	
   

  	
  N.A.

  	
   

  
	
       (a)(5)

  	
   

  	
  N.A.

  	
   

  
	
       (b)

  	
   

  	
   7.08;
  7.10; 11.02

  	
   

  
	
       (c)

  	
   

  	
  N.A.

  	
   

  
	
  311(a)

  	
   

  	
   7.11

  	
   

  
	
       (b)

  	
   

  	
   7.11

  	
   

  
	
       (c)

  	
   

  	
  N.A.

  	
   

  
	
  312(a)

  	
   

  	
   2.05

  	
   

  
	
       (b)

  	
   

  	
  11.03

  	
   

  
	
       (c)

  	
   

  	
  11.03

  	
   

  
	
  313(a)

  	
   

  	
   7.06

  	
   

  
	
       (b)(1)

  	
   

  	
  N.A.

  	
   

  
	
       (b)(2)

  	
   

  	
   7.06

  	
   

  
	
       (c)

  	
   

  	
   7.06;
  11.02

  	
   

  
	
       (d)

  	
   

  	
   7.06

  	
   

  
	
  314(a)

  	
   

  	
   4.03

  	
   

  
	
       (b)

  	
   

  	
  N.A.

  	
   

  
	
       (c)(1)

  	
   

  	
  11.04

  	
   

  
	
       (c)(2)

  	
   

  	
  11.04

  	
   

  
	
       (c)(3)

  	
   

  	
  N.A.

  	
   

  
	
       (d)

  	
   

  	
  N.A.

  	
   

  
	
       (e)

  	
   

  	
  11.05

  	
   

  
	
       (f)

  	
   

  	
  N.A.

  	
   

  
	
  315(a)

  	
   

  	
   7.01(B)

  	
   

  
	
       (b)

  	
   

  	
   7.05;
  11.02

  	
   

  
	
       (c)

  	
   

  	
   7.01(A)

  	
   

  
	
       (d)

  	
   

  	
   7.01(C)

  	
   

  
	
       (e)

  	
   

  	
   6.11

  	
   

  
	
  316(a) (last
  sentence)

  	
   

  	
   2.09

  	
   

  
	
       (a)(1)(A)

  	
   

  	
   6.05

  	
   

  
	
       (a)(1)(B)

  	
   

  	
   6.04

  	
   

  
	
       (a)(2)

  	
   

  	
  N.A.

  	
   

  
	
       (b)

  	
   

  	
   6.07

  	
   

  
	
       (c)

  	
   

  	
  N.A.

  	
   

  
	
  317(a)(1)

  	
   

  	
   6.08

  	
   

  
	
       (a)(2)

  	
   

  	
   6.09

  	
   

  
	
       (b)

  	
   

  	
   2.04

  	
   

  
	
  318(a)

  	
   

  	
  11.01

  	
   

  

 

 I

 

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  	
   

  
	
  I.

  	
   

  	
  DEFINITIONS AND
  INCORPORATION BY REFERENCE

  	
   

  	
  1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.01 Definitions

  	
   

  	
  1

  	
   

  
	
   

  	
   

  	
  1.02 Other
  Definitions

  	
   

  	
  6

  	
   

  
	
   

  	
   

  	
  1.03
  Incorporation by Reference of Trust Indenture Act

  	
   

  	
  7

  	
   

  
	
   

  	
   

  	
  1.04
  Rules of Construction

  	
   

  	
  8

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II.

  	
   

  	
  THE SECURITIES

  	
   

  	
  8

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2.01
  Form and Dating

  	
   

  	
  8

  	
   

  
	
   

  	
   

  	
  2.02 Execution
  and Authentication

  	
   

  	
  9

  	
   

  
	
   

  	
   

  	
  2.03 Registrar,
  Paying Agent and Conversion Agent

  	
   

  	
  10

  	
   

  
	
   

  	
   

  	
  2.04 Paying
  Agent to Hold Money in Trust

  	
   

  	
  10

  	
   

  
	
   

  	
   

  	
  2.05
  Securityholder Lists

  	
   

  	
  10

  	
   

  
	
   

  	
   

  	
  2.06 Transfer
  and Exchange

  	
   

  	
  11

  	
   

  
	
   

  	
   

  	
  2.07 Replacement
  Securities

  	
   

  	
  11

  	
   

  
	
   

  	
   

  	
  2.08 Outstanding
  Securities

  	
   

  	
  11

  	
   

  
	
   

  	
   

  	
  2.09 Securities
  Held by the Company or an Affiliate

  	
   

  	
  12

  	
   

  
	
   

  	
   

  	
  2.10 Temporary
  Securities

  	
   

  	
  12

  	
   

  
	
   

  	
   

  	
  2.11
  Cancellation

  	
   

  	
  13

  	
   

  
	
   

  	
   

  	
  2.12 Defaulted
  Interest

  	
   

  	
  13

  	
   

  
	
   

  	
   

  	
  2.13 CUSIP
  Numbers

  	
   

  	
  13

  	
   

  
	
   

  	
   

  	
  2.14 Deposit of
  Moneys

  	
   

  	
  13

  	
   

  
	
   

  	
   

  	
  2.15 Book-Entry
  Provisions for Global Securities

  	
   

  	
  14

  	
   

  
	
   

  	
   

  	
  2.16 Special
  Transfer Provisions

  	
   

  	
  15

  	
   

  
	
   

  	
   

  	
  2.17 Restrictive
  Legends

  	
   

  	
  16

  	
   

  
	
   

  	
   

  	
  2.18 Ranking

  	
   

  	
  16

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  III.

  	
   

  	
  REDEMPTION AND
  REPURCHASE

  	
   

  	
  17

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.01 No Right of
  Redemption at the Option of the Company

  	
   

  	
  17

  	
   

  
	
   

  	
   

  	
  3.02 Repurchase
  at Option of Holder Upon a Fundamental Change

  	
   

  	
  17

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IV.

  	
   

  	
  COVENANTS

  	
   

  	
  23

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  4.01 Payment of
  Securities

  	
   

  	
  23

  	
   

  
	
   

  	
   

  	
  4.02 Maintenance
  of Office or Agency

  	
   

  	
  24

  	
   

  
	
   

  	
   

  	
  4.03
  Rule 144A Information and Annual Reports

  	
   

  	
  24

  	
   

  
	
   

  	
   

  	
  4.04 Compliance
  Certificate

  	
   

  	
  25

  	
   

  
	
   

  	
   

  	
  4.05 Stay,
  Extension and Usury Laws

  	
   

  	
  26

  	
   

  
	
   

  	
   

  	
  4.06 Corporate
  Existence

  	
   

  	
  26

  	
   

  
	
   

  	
   

  	
  4.07 Notice of
  Default

  	
   

  	
  26

  	
   

  
	
   

  	
   

  	
  4.08 Further
  Instruments and Acts

  	
   

  	
  26

  	
   

  

 

 i
 

 

 

	
  

  	
   

  	
  4.09 Additional
  Interest Notice

  	
   

  	
  26

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V.

  	
   

  	
  SUCCESSORS

  	
   

  	
  27

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  5.01 When
  Company May Merge, etc.

  	
   

  	
  27

  	
   

  
	
   

  	
   

  	
  5.02 Successor
  Substituted

  	
   

  	
  27

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VI.

  	
   

  	
  DEFAULTS AND
  REMEDIES

  	
   

  	
  27

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6.01 Events of
  Default

  	
   

  	
  27

  	
   

  
	
   

  	
   

  	
  6.02
  Acceleration

  	
   

  	
  29

  	
   

  
	
   

  	
   

  	
  6.03 Other
  Remedies

  	
   

  	
  30

  	
   

  
	
   

  	
   

  	
  6.04 Waiver of
  Past Defaults

  	
   

  	
  30

  	
   

  
	
   

  	
   

  	
  6.05 Control by
  Majority

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
  6.06 Limitation
  on Suits

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
  6.07 Rights of
  Holders to Receive Payment

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
  6.08 Collection
  Suit by Trustee

  	
   

  	
  32

  	
   

  
	
   

  	
   

  	
  6.09 Trustee
  May File Proofs of Claim

  	
   

  	
  32

  	
   

  
	
   

  	
   

  	
  6.10 Priorities

  	
   

  	
  32

  	
   

  
	
   

  	
   

  	
  6.11 Undertaking
  for Costs

  	
   

  	
  33

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VII.

  	
   

  	
  TRUSTEE

  	
   

  	
  33

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  7.01 Duties of
  Trustee

  	
   

  	
  33

  	
   

  
	
   

  	
   

  	
  7.02 Rights of
  Truste

  	
   

  	
  34

  	
   

  
	
   

  	
   

  	
  7.03 Individual
  Rights of Trustee

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
  7.04 Trustee’s
  Disclaimer

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
  7.05 Notice of
  Defaults

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
  7.06 Reports by
  Trustee to Holders

  	
   

  	
  36

  	
   

  
	
   

  	
   

  	
  7.07
  Compensation and Indemnity

  	
   

  	
  36

  	
   

  
	
   

  	
   

  	
  7.08 Replacement
  of Trustee

  	
   

  	
  37

  	
   

  
	
   

  	
   

  	
  7.09 Successor
  Trustee by Merger, etc.

  	
   

  	
  38

  	
   

  
	
   

  	
   

  	
  7.10
  Eligibility; Disqualification

  	
   

  	
  38

  	
   

  
	
   

  	
   

  	
  7.11
  Preferential Collection of Claims Against Company

  	
   

  	
  38

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VIII.

  	
   

  	
  DISCHARGE OF
  INDENTURE

  	
   

  	
  38

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8.01 Termination
  of the Obligations of the Company

  	
   

  	
  38

  	
   

  
	
   

  	
   

  	
  8.02 Application
  of Trust Money

  	
   

  	
  39

  	
   

  
	
   

  	
   

  	
  8.03 Repayment
  to Company

  	
   

  	
  39

  	
   

  
	
   

  	
   

  	
  8.04
  Reinstatement

  	
   

  	
  39

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IX.

  	
   

  	
  AMENDMENTS

  	
   

  	
  39

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  9.01 Without
  Consent of Holders

  	
   

  	
  39

  	
   

  
	
   

  	
   

  	
  9.02 With
  Consent of Holders

  	
   

  	
  40

  	
   

  
	
   

  	
   

  	
  9.03 Compliance
  with Trust Indenture Act

  	
   

  	
  41

  	
   

  
	
   

  	
   

  	
  9.04 Revocation
  and Effect of Consents

  	
   

  	
  41

  	
   

  

 

 ii
 

 

 

	
  

  	
   

  	
  9.05 Notation on
  or Exchange of Securities

  	
   

  	
  42

  	
   

  
	
   

  	
   

  	
  9.06 Trustee
  Protected

  	
   

  	
  42

  	
   

  
	
   

  	
   

  	
  9.07 Effect of
  Supplemental Indentures

  	
   

  	
  42

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  X.

  	
   

  	
  CONVERSION

  	
   

  	
  43

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  10.01 Conversion
  Privilege; Restrictive Legends

  	
   

  	
  43

  	
   

  
	
   

  	
   

  	
  10.02 Conversion
  Procedure and Payment Upon Conversion

  	
   

  	
  45

  	
   

  
	
   

  	
   

  	
  10.03 Taxes on
  Conversion

  	
   

  	
  48

  	
   

  
	
   

  	
   

  	
  10.04 Company to
  Provide Stock

  	
   

  	
  48

  	
   

  
	
   

  	
   

  	
  10.05 Adjustment
  of Conversion Rate

  	
   

  	
  48

  	
   

  
	
   

  	
   

  	
  10.06 No
  Adjustment

  	
   

  	
  53

  	
   

  
	
   

  	
   

  	
  10.07 Other Adjustments

  	
   

  	
  55

  	
   

  
	
   

  	
   

  	
  10.08
  Adjustments for Tax Purposes

  	
   

  	
  55

  	
   

  
	
   

  	
   

  	
  10.09 Notice of
  Adjustment

  	
   

  	
  55

  	
   

  
	
   

  	
   

  	
  10.10 Notice of
  Certain Transactions

  	
   

  	
  55

  	
   

  
	
   

  	
   

  	
  10.11 Effect of Reclassifications, Consolidations,
  Mergers, Binding Share Exchanges or Sales on Conversion Privilege

  	
   

  	
  56

  	
   

  
	
   

  	
   

  	
  10.12 Trustee’s
  Disclaimer

  	
   

  	
  57

  	
   

  
	
   

  	
   

  	
  10.13 Rights
  Distributions Pursuant to Stockholders’ Rights Plans

  	
   

  	
  58

  	
   

  
	
   

  	
   

  	
  10.14 Increased Conversion Rate Applicable to
  Certain Notes Surrendered in Connection With Make-Whole Fundamental Changes

  	
   

  	
  58

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  XI.

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  61

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  11.01 Trust
  Indenture Act Controls

  	
   

  	
  61

  	
   

  
	
   

  	
   

  	
  11.02 Notices

  	
   

  	
  61

  	
   

  
	
   

  	
   

  	
  11.03
  Communication by Holders with Other Holders

  	
   

  	
  62

  	
   

  
	
   

  	
   

  	
  11.04
  Certificate and Opinion as to Conditions Precedent

  	
   

  	
  62

  	
   

  
	
   

  	
   

  	
  11.05 Statements
  Required in Certificate or Opinion

  	
   

  	
  63

  	
   

  
	
   

  	
   

  	
  11.06
  Rules by Trustee and Agents

  	
   

  	
  63

  	
   

  
	
   

  	
   

  	
  11.07 Legal
  Holidays

  	
   

  	
  63

  	
   

  
	
   

  	
   

  	
  11.08 Duplicate
  Originals

  	
   

  	
  63

  	
   

  
	
   

  	
   

  	
  11.09 Governing
  Law

  	
   

  	
  64

  	
   

  
	
   

  	
   

  	
  11.10 No Adverse
  Interpretation of Other Agreements

  	
   

  	
  64

  	
   

  
	
   

  	
   

  	
  11.11 Successors

  	
   

  	
  64

  	
   

  
	
   

  	
   

  	
  11.12
  Separability

  	
   

  	
  64

  	
   

  
	
   

  	
   

  	
  11.13 Table of
  Contents, Headings, etc.

  	
   

  	
  64

  	
   

  
	
   

  	
   

  	
  11.14 Calculations
  in Respect of the Securities

  	
   

  	
  64

  	
   

  
	
   

  	
   

  	
  11.15 No
  Personal Liability of Directors, Officers, Employees or Stockholders

  	
   

  	
  64

  	
   

  
	
   

  	
   

  	
  11.16 Force Majeure

  	
   

  	
  65

  	
   

  

 

 iii
 

 

Exhibit A                —            Form of Global Security

Exhibit B-1A          —            Form of
Private Placement Legend (Securities)

Exhibit B-1B          —            Form of
Private Placement Legend (Common Stock)

Exhibit B-2             —            Form of
Legend for Global Security

Exhibit C                —            Form of Notice of Transfer Pursuant to Registration
Statement

 iv

 

INDENTURE,
dated as of June 28, 2006, between MedImmune, Inc., a Delaware
corporation (the “Company”), and
The Bank of New York, a New York banking corporation, as trustee (the “Trustee”).

Each party agrees as
follows for the benefit of the other party and for the equal and ratable
benefit of the Holders of the Company’s 1.375% Convertible Senior Notes due
2011 (the “Securities”).

I.              DEFINITIONS AND
INCORPORATION BY REFERENCE

1.01         DEFINITIONS.

The term “additional interest” has the meaning ascribed to it in the
Registration Rights Agreement.

“Affiliate”
means, with respect to a specified person, any person directly or indirectly
controlling or controlled by or under direct or indirect common control with
such specified person. For this purpose, “control” shall mean the power to
direct the management and policies of a person through the ownership of
securities, by contract or otherwise.

“Asset Sale
Make-Whole Fundamental Change” means a sale, transfer, lease,
conveyance or other disposition (other than a Permitted Transfer) of all or
substantially all of the property or assets of the Company to any “person” or “group”
(as such terms are used in Sections 13(d) and 14(d) of the Exchange
Act), including any group acting for the purpose of acquiring, holding, voting
or disposing of securities within the meaning of Rule 13d-5(b)(1) under
the Exchange Act.

“Bid
Solicitation Agent” means a
Company-appointed agent that performs calculations as set forth in Section 10.01.

“Board of
Directors” means the Board of Directors of the Company or any
committee thereof authorized to act for it hereunder.

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

“Capital
Stock” of any Person means any and all shares, interests,
participations or other equivalents (however designated) of capital stock of
such Person and all warrants or options to acquire such capital stock.

“Closing Sale
Price” on any date means the price of a share of Common Stock on
such date, determined (i) on the basis of the closing per share sale price
(or if no closing per share sale price is reported, the average of the bid and
ask prices or, if more than one in either case, the average of the average bid
and the average ask prices) on such date on the U.S. principal national or
regional securities exchange on which the Common Stock is listed; or (ii) if
the Common Stock is not listed on a U.S. national or regional securities
exchange, as reported by Nasdaq; or

 1
 

 

(iii) if not so
reported, as reported by Pink Sheets LLC or a similar organization; provided, however, that
in the absence of any such report or quotation, the Closing Sale Price shall be
deemed to be such price as the Company shall reasonably determine as most
accurately reflecting the price that a fully informed buyer, acting on his own
accord, would pay to a fully informed seller, acting on his own accord in an
arms-length transaction, for a share of Common Stock.

“Common Stock”
means the common stock, $0.01 par value per share, of the Company, or such
other Capital Stock of the Company into which the Company’s common stock is
reclassified or changed.

“Common Stock
Change Make-Whole Fundamental Change” means any transaction or
series of related transactions (other than a Listed Stock Business
Combination), in connection with which (whether by means of an exchange offer,
liquidation, tender offer, consolidation, merger, combination,
reclassification, recapitalization, asset sale, lease of assets or otherwise)
the Common Stock is exchanged for, converted into, acquired for or constitutes
solely the right to receive other securities, other property, assets or cash.

“Company”
means the party named as such above until a successor replaces it pursuant to
the applicable provision hereof and thereafter means the successor. The
foregoing sentence shall likewise apply to any such successor or subsequent
successor.

“Company
Order” or “Company Request”
means a written request or order signed on behalf of the Company by its
Chairman of the Board, its Chief Executive Officer, its President, its Chief
Operating Officer, its Chief Financial Officer or any Vice President and by its
Treasurer or an Assistant Treasurer or its Secretary or an Assistant Secretary,
and delivered to the Trustee.

“Conversion
Price” means, as of any date of
determination, the dollar amount derived by dividing one thousand dollars
($1,000) by the Conversion Rate in effect on such date.

“Conversion
Rate” shall initially be 29.9679 shares
of Common Stock per $1,000 principal amount of Securities, subject to
adjustment as provided in Article X.

“Corporate
Trust Office of the Trustee” means the principal office of the
Trustee at which at any time its corporate trust business shall be
administered, which office as of the date hereof is located at 101 Barclay
Street, Floor 8 West, New York, New York 10286, Attention: Corporate Trust
Administration, or such other address as the Trustee may designate from time to
time by notice to the Holders and the Company, or the principal corporate trust
office of any successor Trustee (or such other address as such successor
Trustee may designate from time to time by notice to the Holders and the
Company).

“Default”
means any event which is, or after notice or passage of time or both would be,
an Event of Default.

“Depositary”
means The Depository Trust Company, its nominees and successors.

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

 2
 

 

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

“Indebtedness”
of a person means the principal of, premium, if any, and interest on, and all
other obligations in respect of (a) all indebtedness of such person for
borrowed money (including all indebtedness evidenced by notes, bonds,
debentures or other securities), (b) all obligations (other than trade payables)
incurred by such person in the acquisition (whether by way of purchase, merger,
consolidation or otherwise and whether by such person or another person) of any
business, real property or other assets, (c) all reimbursement obligations
of such person with respect to letters of credit, bankers’ acceptances or
similar facilities issued for the account of such person, (d) all capital
lease obligations of such person, (e) all net obligations of such person
under interest rate swap, currency exchange or similar agreements of such
person, (f) all obligations and other liabilities, contingent or
otherwise, under any lease or related document, including a purchase agreement,
conditional sale or other title retention agreement, in connection with the
lease of real property or improvements thereon (or any personal property
included as part of any such lease) which provides that such person is
contractually obligated to purchase or cause a third party to purchase the
leased property or pay an agreed-upon residual value of the leased property,
including such person’s obligations under such lease or related document to
purchase or cause a third party to purchase such leased property or pay an
agreed-upon residual value of the leased property to the lessor, (g) guarantees
by such person of indebtedness described in clauses (a) through
(f) of another person, and (h) all renewals, extensions,
refundings, deferrals, restructurings, amendments and modifications of any
indebtedness, obligation, guarantee or liability of the kind described in clauses (a) through (g).

“Indenture”
means this Indenture as amended or supplemented from time to time.

“Initial
Purchasers” means UBS Securities LLC, Merrill Lynch, Pierce, Fenner &
Smith Incorporated, Lehman Brothers Inc. Banc of America Securities LLC,
Citigroup Global Markets Inc., Goldman, Sachs & Co. and Wachovia
Capital Markets, LLC.

“Issue Date”
means June 28, 2006.

“Make-Whole Fundamental Change” means an
Asset Sale Make-Whole Fundamental Change or a Common Stock Change Make-Whole
Fundamental Change that occurs prior to the Maturity Date.

“Market
Disruption Event” means (i) a failure by the primary United
States national securities exchange or market on which the Common Stock is
listed or admitted to trading to open for trading during its regular trading
session; or (ii) the occurrence or existence, prior to 1:00 p.m. on
any day during which trading in the Common Stock generally occurs on the
primary U.S. national securities exchange or market on which the Common Stock
is listed or admitted to trading, for an aggregate of at least thirty (30)
minutes, of any suspension or limitation imposed on trading (by reason of
movements in price exceeding limits permitted by the stock exchange or
otherwise) in the Common Stock or in any options, contracts or future contracts
relating to the Common Stock.

“Maturity
Date” means July 15, 2011.

 3
 

 

“Offering
Memorandum” means the final Offering Memorandum of the Company,
dated June 22, 2006, relating to the Securities and the Company’s 1.625%
Convertible Senior Notes due 2013.

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

“Officer’s
Certificate” means a certificate signed by one Officer of the
Company.

“Opinion of
Counsel” means a written opinion from legal counsel who may be an employee
of or counsel for the Company, or other counsel reasonably acceptable to the
Trustee.

“Option”
means the Initial Purchasers’ option to acquire up to $75,000,000 aggregate
principal amount of additional Securities (“Additional
Securities”) as provided for in the Purchase Agreement.

“Permitted
Transfer” shall mean any transfer, whether in a single transaction
or series of related transactions, of all or substantially all of the Company’s
property or assets to one or more of its Subsidiaries, so long as at and after
such transaction or series of transactions, such Subsidiary shall guarantee, or
each of such Subsidiaries shall jointly and severally guarantee, as the case
may be, in each case on a senior unsecured basis, the Company’s obligations
under the Securities.

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

“Purchase
Agreement” means the Purchase Agreement dated June 22, 2006
among the Company and the Initial Purchasers.

“Purchase
Notice” means a Purchase Notice in the form set forth in the
Securities.

“QIB”
means a “qualified institutional buyer” within the meaning of Rule 144A under
the Securities Act.

“Registration
Rights Agreement” means the Registration Rights Agreement dated as
of the date hereof among the Company and the Initial Purchasers.

“Responsible
Officer” shall mean, when used with respect to the Trustee, any
officer within the corporate trust department of the Trustee, including any
vice president, assistant vice president, assistant secretary, assistant
treasurer, trust officer or any other officer of the Trustee who customarily
performs functions similar to those performed by the Persons who at the time
shall be such officers, respectively, or to whom any corporate trust matter is
referred because of such person’s knowledge of and familiarity with the
particular subject and who shall have direct responsibility for the
administration of this Indenture.

 4
 

 

“Restricted
Security” means a Security that constitutes a “restricted security”
within the meaning of Rule 144(a)(3) under the Securities Act; provided, however, that
the Trustee shall be entitled to request and conclusively rely on an Opinion of
Counsel with respect to whether any Security constitutes a Restricted Security.

“Rights
Agreement” means that certain Amended and Restated Rights Agreement
between the Company and American Stock Transfer & Trust Company, dated
October 31, 1998, as the same may be amended, supplemented or superseded.

“Rule 144A” means Rule 144A under the Securities Act.

“SEC”
means the Securities and Exchange Commission.

“Securities”
means the 1.375% Convertible Senior Notes due 2011 issued by the Company
pursuant to this Indenture.

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

“Securities
Agent” means any Registrar, Paying Agent, Conversion Agent, Bid
Solicitation Agent or co-Registrar or co-agent.

“Significant
Subsidiary” with respect to any person means any “subsidiary” (as
defined in Rule 1-02(x) of Regulation S-X under the Securities
Act) of such person that constitutes a “significant subsidiary” within the
meaning of Rule 1-02(w) of Regulation S-X under the Securities
Act.

“Subsidiary”
means (i) a corporation a majority of whose Capital Stock with voting
power, under ordinary circumstances, to elect directors is at the time,
directly or indirectly, owned by the Company, by one or more subsidiaries of
the Company or by the Company and one or more of its subsidiaries or (ii) any
other person (other than a corporation) in which the Company, one or more of
its subsidiaries, or the Company and one or more of its subsidiaries, directly
or indirectly, at the date of determination thereof, own at least a majority
ownership interest.

“TIA”
means the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) as
amended and in effect from time to time.

“Trading Day”
means any day during which: (i) trading in the Common Stock generally
occurs on the primary United States national securities exchange or market on
which the Common Stock is listed or admitted to trading; and (ii) there is
no Market Disruption Event.

“Trading Price”
means, on any day, the average of the secondary market bid quotations for the
Securities obtained by the Bid Solicitation Agent for five million dollars
($5,000,000) principal amount of Securities at approximately 4:00 p.m.,
New York City time, on such day, from three (3) independent, nationally
recognized securities dealers selected by the Company; provided, that
if the Bid Solicitation Agent can reasonably obtain only two (2) such
bids, then the average of such two (2) bids shall instead be used; provided further, that if the Bid Solicitation

 5
 

 

Agent can reasonably obtain only one (1) such
bid, then such bid shall instead be used; provided further,
that if, on a given date, the Bid Solicitation Agent cannot reasonably obtain
at least one (1) such bid, or if, in the reasonable, good faith judgment
of the Company, the bid quotation or
quotations that the Bid Solicitation Agent has obtained are not indicative of
the secondary market value of the Securities, then, in each case, the Trading
Price per $1,000 principal amount of Securities on such day shall be deemed to
be equal to 97% of the product of (I) the Conversion Rate in effect on
such day and (II) the Closing Sale Price on such day.

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

“Voting Stock”
of any Person means the total outstanding voting power of all classes of the
Capital Stock of such Person entitled to vote generally in the election of
directors of such Person.

1.02         OTHER DEFINITIONS.

	
  Term

  	
   

  	
  Defined in Section

  
	
  “Additional Interest Notice”

  	
   

  	
  4.09

  
	
  “Additional Securities”

  	
   

  	
  1.01

  
	
  “Aggregate Amount”

  	
   

  	
  10.05

  
	
  “Applicable Price”

  	
   

  	
  10.14

  
	
  “Bankruptcy Law”

  	
   

  	
  6.01

  
	
  “BCF Adjustment Cap”

  	
   

  	
  10.06

  
	
  “BCF Make-Whole Cap”

  	
   

  	
  10.14

  
	
  “Business Day”

  	
   

  	
  11.07

  
	
  “Cash
  Settlement Averaging Period”

  	
   

  	
  10.02

  
	
  “Change in Control”

  	
   

  	
  3.02

  
	
  “Collective Election”

  	
   

  	
  10.11

  
	
  “Common Stock Private Placement
  Legend”

  	
   

  	
  2.17

  
	
  “Conversion Agent”

  	
   

  	
  2.03

  
	
  “Conversion Date”

  	
   

  	
  10.02

  
	
  “Conversion Value”

  	
   

  	
  10.01

  
	
  “Custodian”

  	
   

  	
  6.01

  
	
  “Daily
  Conversion Value”

  	
   

  	
  10.02

  
	
  “Daily
  Net Shares”

  	
   

  	
  10.02

  
	
  “Daily
  Principal Return”

  	
   

  	
  10.02

  
	
  “Effective Date”

  	
   

  	
  10.14

  
	
  “Event of Default”

  	
   

  	
  6.01

  
	
  “Ex Date”

  	
   

  	
  10.05

  
	
  “Expiration Date”

  	
   

  	
  10.05

  
	
  “Expiration Time”

  	
   

  	
  10.05

  
	
  “Fundamental Change”

  	
   

  	
  3.02

  
	
  “Fundamental Change Notice”

  	
   

  	
  3.02

  
	
  “Fundamental Change Repurchase
  Date”

  	
   

  	
  3.02

  
	
  “Fundamental Change Repurchase Price”

  	
   

  	
  3.02

  

 

 6
 

 

 

	
  “Fundamental Change Repurchase Right”

  	
   

  	
  3.02

  
	
  “Global Security”

  	
   

  	
  2.01

  
	
  “Legal Holiday”

  	
   

  	
  11.07

  
	
  “Listed Stock Business
  Combination”

  	
   

  	
  3.02

  
	
  “Make-Whole Applicable
  Increase”

  	
   

  	
  10.14

  
	
  “Make-Whole Conversion Period”

  	
   

  	
  10.14

  
	
  “Make-Whole Consideration”

  	
   

  	
  10.14

  
	
  “Net Shares”

  	
   

  	
  10.02

  
	
  “Notice of Default”

  	
   

  	
  6.01

  
	
  “Note Measurement Period”

  	
   

  	
  10.01

  
	
  “Participants”

  	
   

  	
  2.15

  
	
  “Paying Agent”

  	
   

  	
  2.03

  
	
  “Physical Securities”

  	
   

  	
  2.01

  
	
  “Principal Return”

  	
   

  	
  10.02

  
	
  “Purchase at Holder’s Option”

  	
   

  	
  3.01

  
	
  “Purchased Shares”

  	
   

  	
  10.05

  
	
  “record date”

  	
   

  	
  10.05

  
	
  “Reference Property”

  	
   

  	
  10.11

  
	
  “Registrar”

  	
   

  	
  2.03

  
	
  “Relevant Date”

  	
   

  	
  10.02

  
	
  “Repurchase Upon Fundamental
  Change”

  	
   

  	
  3.02

  
	
  “Resale Restriction Termination
  Date”

  	
   

  	
  2.17

  
	
  “Securities Private Placement
  Legend”

  	
   

  	
  2.17

  
	
  “Spin-Off”

  	
   

  	
  10.05

  
	
  “Termination of Trading”

  	
   

  	
  3.02

  
	
  “Trading Price Condition”

  	
   

  	
  10.01

  
	
  “Trigger Event”

  	
   

  	
  10.05

  
	
  “Underlying Shares”

  	
   

  	
  10.05

  
	
  “Volume-Weighted Average Price”

  	
   

  	
  10.02

  
	
   

  	
   

  	
   

  

 

1.03         INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT.

Whenever this Indenture
refers to a provision of the TIA, the provision is incorporated by reference in
and made a part of this Indenture.

The following TIA terms
used in this Indenture have the following meanings:

“Commission” means the SEC;

“indenture securities” means the Securities;

“indenture security holder” means a Securityholder or a
Holder;

“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 successor.

 7
 

 

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

1.04         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 U.S. generally accepted accounting principles in effect from
time to time;

(iii)       “or”
is not exclusive;

(iv)       “including”
means “including without limitation”;

(v)        words
in the singular include the plural and in the plural include the singular;

(vi)       provisions
apply to successive events and transactions;

(vii)      the
term “interest” includes
additional interest, unless the context otherwise requires or the terms of the
Registration Rights Agreement provide otherwise;

(viii)     “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 of this
Indenture; and

(ix)       references
to currency shall mean the lawful currency of the United States of America,
unless the context requires otherwise.

II.            THE
SECURITIES

2.01         FORM AND DATING.

The Securities and the
Trustee’s certificate of authentication shall be substantially in the form set
forth in Exhibit A, which is incorporated
in and forms a part of this Indenture. The Securities may have notations,
legends or endorsements required by law, stock exchange rule or usage, provided such notations, legends or endorsements are in a
form reasonably acceptable to the Company. Each Security shall be dated the
date of its authentication.

Securities offered and
sold in reliance on Rule 144A shall be issued initially in the form of one
or more Global Securities, substantially in the form set forth in Exhibit A (the “Global Security”),
deposited with the Trustee, as custodian for the Depositary, registered in the
name of the Depositary or a nominee thereof, duly executed by the Company and
authenticated by the

 8
 

 

Trustee as hereinafter
provided and bearing the legends set forth in Exhibits
B-1A and B-2.
The aggregate principal amount of the Global Security may from time to time be
increased or decreased by adjustments made on the records of the Trustee, as
custodian for the Depositary, as hereinafter provided; provided,
that in no event shall the aggregate principal amount of the Global Security or
Securities exceed $500,000,000 (or $575,000,000 if the Initial Purchasers elect
to purchase all of the Additional Securities pursuant to the Option).

Securities issued in
exchange for interests in a Global Security pursuant to Section 2.15
may be issued in the form of permanent certificated Securities in
registered form in substantially the form set forth in Exhibit A
(the “Physical Securities”) and, if
applicable, bearing any legends required by Section 2.17.

2.02         EXECUTION AND AUTHENTICATION.

One duly authorized
Officer shall sign the Securities for the Company by manual or facsimile signature.

A Security’s validity shall
not be affected by the failure of an Officer whose signature is on such
Security to hold, at the time the Security is authenticated, the same office at
the Company.

A Security shall not be
valid until duly authenticated by the manual or facsimile signature of the Trustee.
The signature shall be conclusive evidence that the Security has been
authenticated under this Indenture.

Upon a written order of
the Company signed by one Officer of the Company, the Trustee shall
authenticate Securities for original issue in the aggregate principal amount of
$500,000,000 and such additional principal amount, if any, as shall be
determined pursuant to the next sentence of this Section 2.02.
Upon receipt by the Trustee of an Officer’s Certificate stating that the Initial
Purchasers have elected to purchase from the Company a specified principal
amount of Additional Securities, not to exceed $75,000,000, pursuant to the
Option, the Trustee shall authenticate and deliver such specified principal
amount of Additional Securities to or upon the written order of the Company
signed as provided in the immediately preceding sentence. Such Officer’s
Certificate must be received by the Trustee not later than the proposed date
for delivering of such Additional Securities. The aggregate principal amount of
Securities outstanding at any time may not exceed $500,000,000 except as
provided in this Section 2.02.

Upon a written order of
the Company signed by two (2) Officers or by an Officer and an Assistant
Treasurer of the Company, the Trustee shall authenticate Securities not bearing
the Securities Private Placement Legend to be issued to the transferee when
sold pursuant to an effective registration statement under the Securities Act
as set forth in Section 2.16(B).

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 authenticating agent. An authenticating agent so
appointed has the same rights as a Securities Agent to deal with the Company
and its Affiliates.

 9
 

 

If a written order of the
Company pursuant to this Section 2.02
has been, or simultaneously is, delivered, any instructions by the Company to
the Trustee with respect to endorsement, delivery or redelivery of a Security
issued in global form shall be in writing but need not comply with Section 11.04 hereof and need not be accompanied by an
Opinion of Counsel.

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

2.03         REGISTRAR, PAYING AGENT AND CONVERSION AGENT.

The Company shall
maintain, or shall cause to be maintained, (i) an office or agency in the
Borough of Manhattan, The City of New York, where Securities may be presented
for registration of transfer or for exchange (“Registrar”),
(ii) an office or agency in the Borough of Manhattan, The City of New
York, where Securities may be presented for payment (“Paying Agent”)
and (iii) an office or agency in the Borough of Manhattan, The City of New
York, where Securities may be presented for conversion (“Conversion
Agent”). The Registrar shall keep a register of the Securities and
of their transfer and exchange. The Company may appoint or change one or more
co-Registrars, one or more additional paying agents and one or more additional
conversion agents without notice and may act in any such capacity on its own
behalf. The term “Registrar”
includes any co-Registrar; the term “Paying Agent”
includes any additional paying agent; and the term “Conversion
Agent” includes any additional conversion agent.

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 or Conversion Agent, the Trustee shall act
as such.

The Company initially
appoints the Trustee as Paying Agent, Bid Solicitation Agent, Registrar and
Conversion Agent.

2.04         PAYING AGENT TO HOLD MONEY IN TRUST.

Each Paying Agent shall
hold in trust for the benefit of the Securityholders or the Trustee all moneys
held by the Paying Agent for the payment of the Securities, and shall notify
the Trustee of any Default by the Company in making any such payment. While any
such Default continues, the Trustee may require a Paying Agent to pay all money
held by it to the Trustee. The Company at any time may require a Paying Agent
to pay all money held by it to the Trustee and account for any funds so paid by
it. Upon payment over to the Trustee, the Paying Agent shall have no further
liability for such money. If the Company acts as Paying Agent, it shall
segregate and hold as a separate trust fund all money held by it as Paying
Agent.

2.05         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

 10
 

 

Registrar, the Company
shall furnish, or shall cause to be furnished, to the Trustee on or before each
interest payment date and at such other times as the Trustee may request in
writing a list, in such form and as of such date as the Trustee may reasonably
require, of the names and addresses of Securityholders appearing in the
security register of the Registrar.

2.06         TRANSFER AND EXCHANGE.

Subject to Sections 2.15 and 2.16 hereof,
where Securities are presented to the Registrar with a request to register
their transfer or to exchange them for an equal principal amount of Securities
of other authorized denominations, the Registrar shall register the transfer or
make the exchange if its requirements for such transaction are met. To permit
registrations of transfer and exchanges, the Trustee shall authenticate
Securities at the Registrar’s request or upon the Trustee’s receipt of a
Company Order therefor. The Company or the Trustee, as the case may be, shall
not be required to register the transfer of or exchange any Security for which
a Purchase Notice has been delivered, and not withdrawn, in accordance with
this Indenture, except the unrepurchased portion of Securities being
repurchased in part.

No service charge shall
be made for any transfer, exchange or conversion of Securities, but the Company
may require payment of a sum sufficient to cover any transfer tax or similar
governmental charge that may be imposed in connection with any transfer,
exchange or conversion of Securities, other than exchanges pursuant to Sections  2.10, 9.05 or 10.02, or Article III,
not involving any transfer.

2.07         REPLACEMENT SECURITIES.

If the Holder of a
Security claims that the Security has been mutilated, lost, destroyed or
wrongfully taken, the Company shall issue and the Trustee shall authenticate a
replacement Security upon surrender to the Trustee of the mutilated Security,
or upon delivery to the Trustee of evidence of the loss, destruction or theft
of the Security satisfactory to the Trustee and the Company. In the case of a
lost, destroyed or wrongfully taken Security, if required by the Trustee or the
Company, indemnity must be provided by the Holder that is reasonably
satisfactory to the Trustee and the Company to indemnify and hold harmless the
Company, the Trustee or any Securities Agent from any loss which any of them
may suffer if such Security is replaced. The Trustee and the Company may charge
such Holder for their expenses in replacing a Security.

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

Every replacement
Security is an additional obligation of the Company only as provided in Section 2.08.

2.08         OUTSTANDING SECURITIES.

Securities outstanding at
any time are all the Securities authenticated by the Trustee except for those
converted, those cancelled by it, those delivered to it for cancellation and
those described in this Section 2.08
as not outstanding. Except to the extent provided in Section 2.09,

 11
 

 

a Security does not cease
to be outstanding because the Company or one of its Subsidiaries or Affiliates
holds the Security.

If a Security is replaced
pursuant to Section 2.07, it ceases to be
outstanding unless the Trustee receives proof satisfactory to it, or a court
holds, that the replaced Security is held by a protected purchaser.

If the Paying Agent
(other than the Company) holds on a Fundamental Change Repurchase Date or
Maturity Date, money sufficient to pay the aggregate Fundamental Change
Repurchase Price or principal amount, as the case may be, with respect to all
Securities to be purchased or paid upon Repurchase Upon Fundamental Change or
on the Maturity Date, as the case may be, in each case plus, if applicable,
accrued and unpaid interest, if any, payable as herein provided upon Repurchase
Upon Fundamental Change or on the Maturity Date, then (unless there shall be a
Default in the payment of such aggregate Fundamental Change Repurchase Price or
principal amount, or of such accrued and unpaid interest), except as otherwise
provided herein, on and after such date such Securities shall be deemed to be
no longer outstanding, interest on such Securities shall cease to accrue, and
such Securities shall be deemed paid whether or not such Securities are
delivered to the Paying Agent. Thereafter, all rights of the Holders of such
Securities shall terminate with respect to such Securities, other than the
right to receive the Fundamental Change Repurchase Price or principal amount,
as the case may be, plus, if applicable, such accrued and unpaid interest, in
accordance with this Indenture.

If a Security is
converted in accordance with Article X,
then, from and after the time of such conversion on the Conversion Date, such
Security shall cease to be outstanding, and interest, if any, shall cease to
accrue on such Security unless there shall be a Default in the payment or
delivery of the consideration payable hereunder upon such conversion.

2.09         SECURITIES HELD BY THE COMPANY OR AN AFFILIATE.

In determining whether
the Holders of the required aggregate principal amount of Securities have
concurred in any direction, waiver or consent, Securities owned by the Company
or any of its Subsidiaries or Affiliates shall be considered as though not
outstanding, except that, for the purposes of determining whether the Trustee
shall be protected in relying on any such direction, waiver or consent, only
Securities which a Responsible Officer of the Trustee actually knows are so
owned shall be so disregarded. Securities so owned which have been pledged in
good faith may be considered to be outstanding for purposes of this Section 2.09 if the pledgee establishes, to the
satisfaction of the Trustee, the pledgee’s right so to concur with respect to
such Securities and that the pledgee is not, and is not acting at the direction
or on behalf of, the Company, any other obligor on the Securities, an Affiliate
of the Company or an Affiliate of any such other obligor. In the event of a
dispute as to whether the pledgee has established the foregoing, the Trustee
may conclusively rely on an Officer’s Certificate.

2.10         TEMPORARY SECURITIES.

Until definitive
Securities are ready for delivery, the Company may prepare and the Trustee shall,
upon receipt of a Company Order therefor, authenticate temporary Securities. Temporary
Securities shall be substantially in the form of definitive Securities but may
have

 12
 

 

variations that the
Company considers appropriate for temporary Securities. Without unreasonable
delay, the Company shall prepare and the Trustee, upon receipt of a Company
Order therefor, shall authenticate definitive Securities in exchange for
temporary Securities. Until so exchanged, each temporary Security shall in all
respects be entitled to the same benefits under this Indenture as definitive
Securities, and such temporary Security shall be exchangeable for definitive
Securities in accordance with the terms of this Indenture.

2.11         CANCELLATION.

The Company at any time
may deliver Securities to the Trustee for cancellation. The Registrar, Paying
Agent and Conversion Agent shall forward to the Trustee any Securities surrendered
to them for transfer, exchange, payment or conversion. The Trustee shall
promptly cancel all Securities surrendered for transfer, exchange, payment,
conversion or cancellation in accordance with its customary procedures. The
Company may not issue new Securities to replace Securities that it has paid or
delivered to the Trustee for cancellation or that any Securityholder has
converted pursuant to Article X.
All cancelled Securities held by the Trustee shall be disposed of in accordance
with its customary procedure for the disposal of cancelled securities, and
certification of such disposal shall be delivered by the Trustee to the Company
unless the Company shall, by a Company Order, direct that cancelled Securities
be returned to it.

2.12         DEFAULTED INTEREST.

If and to the extent the
Company defaults in a payment of interest on the Securities, the Company shall
pay in cash the defaulted interest in any lawful manner plus, to the extent not
prohibited by applicable statute or case law, interest on such defaulted
interest at the rate provided in the Securities. The Company may pay the
defaulted interest (plus interest on such defaulted interest) to the persons
who are Securityholders on a subsequent special record date. The Company shall
fix such record date and payment date. At least fifteen (15) calendar days
before the record date, the Company shall mail to Securityholders a notice that
states the record date, payment date and amount of interest to be paid. Upon
the due payment in full, interest shall no longer accrue on such defaulted
interest pursuant to this Section 2.12.

2.13         CUSIP NUMBERS.

The Company in issuing
the Securities may use one or more “CUSIP” numbers, and, if so, the Trustee
shall use the CUSIP numbers in notices as a convenience to Holders; provided, however, that
no representation is hereby deemed to be made by the Trustee as to the
correctness or accuracy of the CUSIP numbers printed on the notice or on the
Securities; provided further, that reliance may be
placed only on the other identification numbers printed on the Securities, and
the effectiveness of any such notice shall not be affected by any defect in, or
omission of, such CUSIP numbers. The Company shall promptly notify the Trustee
of any change in the CUSIP numbers.

2.14         DEPOSIT OF MONEYS.

Prior to 11:00 A.M.,
New York City time, on each interest payment date, Maturity Date or Fundamental
Change Repurchase Date, the Company shall deposit with a Paying Agent (or, if
the Company is acting as its own Paying Agent, segregate and hold in trust in
accordance with

 13
 

 

Section 2.04)
money, in funds immediately available on such date, sufficient to make cash
payments, if any, due on such interest payment date, Maturity Date or
Fundamental Change Repurchase Date, as the case may be, in a timely manner
which permits the Paying Agent to remit payment to the Holders on such interest
payment date, Maturity Date or Fundamental Change Repurchase Date, as the case
may be.

2.15         BOOK-ENTRY PROVISIONS FOR
GLOBAL SECURITIES.

(A)          The
Global Securities initially shall (i) be registered in the name of the
Depositary or the nominee of the Depositary, (ii) be delivered to the
Trustee as custodian for the Depositary and (iii) bear legends as set
forth in Section 2.17.

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

(B)           Transfers
of Global Securities shall be limited to transfers in whole, but not in part,
to the Depositary, its successors or their respective nominees. In addition,
Physical Securities shall be transferred to all beneficial owners, as
identified by the Depositary, in exchange for their beneficial interests in
Global Securities only if (i) the Depositary notifies the Company that the
Depositary is unwilling or unable to continue as depositary for any Global
Security (or the Depositary ceases to be a “clearing agency” registered under Section 17A
of the Exchange Act) and a successor Depositary is not appointed by the Company
within ninety (90) days of such notice or cessation or (ii) an Event of
Default has occurred and is continuing and the Registrar has received a written
request from the Depositary to issue Physical Securities.

(C)           In
connection with the transfer of a Global Security in its entirety to beneficial
owners pursuant to Section 2.15(B),
such Global Security shall be deemed to be surrendered to the Trustee for
cancellation, and the Company shall execute, and the Trustee shall upon written
instructions from the Company authenticate and deliver, to each beneficial
owner identified by the Depositary in exchange for its beneficial interest in
such Global Security, an equal aggregate principal amount of Physical
Securities of authorized denominations.

(D)          Any
Physical Security constituting a Restricted Security delivered in exchange for
an interest in a Global Security pursuant to Section 2.15(B) shall,
except as otherwise provided by Section 2.16,
bear the Securities Private Placement Legend.

 14

 

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

(F)           The
Trustee shall have no obligation or duty to monitor, determine or inquire as to
compliance with any restrictions on the transfer of any interest in any
Securities imposed under this Indenture or under applicable law (including any
transfers between or among participants of the Depositary or 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.

(G)           Neither
the Trustee nor any Securities Agent shall have any responsibility for any
actions taken or not taken by the Depositary.

2.16         SPECIAL TRANSFER PROVISIONS.

(A)          Restrictions on Transfer and Exchange of Global
Securities. Notwithstanding any other provisions of this Indenture,
but except as provided in Section 2.15(B),
a Global 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.

(B)           Private Placement Legend. Upon the
transfer, exchange or replacement of Securities not bearing the Securities
Private Placement Legend, the Registrar or co-Registrar shall deliver Securities
that do not bear the Securities Private Placement Legend. Upon the transfer,
exchange or replacement of Securities bearing the Securities Private Placement
Legend, the Registrar or co-Registrar shall deliver only Securities that bear
the Securities Private Placement Legend unless (i) the requested transfer
is after the Resale Restriction Termination Date, (ii) there is delivered
to the Trustee and the Company an opinion of counsel reasonably satisfactory to
the Company and addressed to the Company to the effect that neither such legend
nor the related restrictions on transfer are required in order to maintain
compliance with the provisions of the Securities Act or (iii) such
Security has been sold pursuant to an effective registration statement under
the Securities Act and the Holder selling such Securities has delivered to the
Registrar or co-Registrar a notice in the form of Exhibit C hereto. Upon the effectiveness, under the
Securities Act, of a “Shelf Registration Statement” (as defined in the
Registration Rights Agreement), the Company shall deliver to the Trustee a
notice of effectiveness, a Global Security or Global Securities, which do not
bear the Securities Private Placement Legend, an authentication order in
accordance with Section 2.02,
and, if required by the Depositary, the Company shall deliver to the Depositary
a letter of representations in a form reasonably acceptable to the Depositary. Upon
the effectiveness of any post-effective amendment to a “Shelf Registration
Statement” (as defined in the Registration Rights Agreement) and upon the
effectiveness, under the Securities Act, of any “Subsequent Shelf Registration
Statement” (as defined in the Registration Rights Agreement), the Company shall
deliver to the Trustee a notice of effectiveness and an Opinion of Counsel in
the form of Exhibit D hereto.
Upon any sale, pursuant to a Shelf Registration Statement, of a beneficial
interest in a Global Security that theretofore constituted a Restricted
Security and delivery of appropriate evidence thereof to the Trustee, and upon
any sale or transfer of a beneficial interest in connection with which the
Securities Private Placement Legend will be removed in accordance with this
Indenture, the Trustee shall increase the principal amount of the Global
Security that

 15
 

 

does not constitute a Restricted Security by the principal amount of
such sale or transfer and likewise reduce the principal amount of the Global
Security that does constitute a Restricted Security.

(C)           General. By its acceptance of any Security
or share of Common Stock bearing the Security Private Placement Legend or the
Common Stock Private Placement Legend, each holder thereof acknowledges the
restrictions on transfer of such security set forth in this Indenture and in
the Security Private Placement Legend or Common Stock Private Placement Legend,
as applicable, and agrees that it will transfer such security only as provided
in this Indenture and as permitted by applicable law.

The Registrar shall
retain copies of all letters, notices and other written communications received
pursuant to Section 2.15 or this Section 2.16. The Company shall have the right to inspect
and make copies of all such letters, notices or other written communications at
any reasonable time upon the giving of reasonable written notice to the
Registrar.

(D)          Transfers of Securities Held by Affiliates.
Any Securities or shares of Common Stock issued upon the conversion of
Securities that are purchased or owned by the Company or any Affiliate thereof
may not be resold by the Company or such Affiliate unless registered under the
Securities Act or resold pursuant to an exemption from the registration
requirements of the Securities Act in a transaction that results in such
Securities or shares of Common Stock, as the case may be, no longer being
Restricted Securities. For the avoidance of doubt, solely with respect to
Affiliates, the aforementioned sentence shall not constitute a covenant of the
Company under this Indenture.

2.17         RESTRICTIVE LEGENDS.

Each Global Security and
Physical Security that constitutes a Restricted Security shall bear the legend
(the “Security Private Placement Legend”) as
set forth in Exhibit B-1A on the
face thereof until the date that is two years after the last date of original
issuance of such notes, or such other period of time as permitted by Rule 144(k) under
the Securities Act or any successor provision thereto (such date, the “Resale Restriction Termination Date”). Each certificate
representing shares of Common Stock, if any, issued upon conversion of any
Security, shall, if such shares constitute Restricted Securities, shall bear
the legend (the “Common Stock Private Placement Legend”)
as set forth in Exhibit B-1B on the
face thereof until such shares no longer constitute “Restricted Securities.”

Each Global Security
shall also bear the legend as set forth in Exhibit B-2.

2.18         RANKING.

The indebtedness of the
Company arising under or in connection with this Indenture and every
outstanding Security issued under this Indenture from time to time constitutes
and will constitute a senior unsecured obligation of the Company, ranking
equally with other existing and future senior unsecured indebtedness of the
Company and ranking senior to any existing or future subordinated indebtedness
of the Company.

 16
 

 

III.           REDEMPTION
AND REPURCHASE

3.01         NO RIGHT OF REDEMPTION AT THE OPTION OF THE COMPANY.

Prior to the Maturity
Date, the Securities shall not be subject to redemption at the option of the
Company.

3.02         REPURCHASE AT OPTION OF HOLDER UPON A FUNDAMENTAL
CHANGE.

(A)          In the event any
Fundamental Change shall occur, each Holder of Securities shall have the right
(the “Fundamental Change Repurchase Right”),
at such Holder’s option, to require the Company to repurchase (a “Repurchase Upon Fundamental Change”) all of
such Holder’s Securities (or portions thereof that are integral multiples of
$1,000 in principal amount), on a date selected by the Company (the “Fundamental Change Repurchase Date”), which
Fundamental Change Repurchase Date shall be no later than thirty five (35)
days, nor earlier than twenty (20) days, after the date the Fundamental Change
Notice is mailed in accordance with Section 3.02(B),
at a price, payable in cash, equal to one hundred percent (100%) of the
principal amount of the Securities (or portions thereof) to be so repurchased
(the “Fundamental Change Repurchase Price”),
plus accrued and unpaid interest, if any, to, but excluding, the Fundamental
Change Repurchase Date, upon:

(i)      delivery to the Company (if it is acting
as its own Paying Agent), or to a Paying Agent designated by the Company for
such purpose in the Fundamental Change Notice, no later than the close of
business on the third (3rd) Business Day immediately preceding the Fundamental
Change Repurchase Date, of a Purchase Notice, in the form set forth in the
Securities or any other form of written notice substantially similar thereto,
in each case, duly completed and signed, with appropriate signature guarantee,
stating:

(a)           the certificate number(s) of the
Securities which the Holder will deliver to be repurchased, if such Securities
are in certificated form;

(b)           the principal amount of Securities to
be repurchased, which must be $1,000 or an integral multiple thereof; and

(c)           that such principal amount of
Securities are to be repurchased pursuant to the terms and conditions specified
in paragraph 7 of the Securities and in
this Indenture; and

(ii)     delivery to the Company (if it is acting as
its own Paying Agent), or to a Paying Agent designated by the Company for such
purpose in the Fundamental Change Notice, at any time after the delivery of
such Purchase Notice, of such Securities (together with all necessary
endorsements) with respect to which the Fundamental Change Repurchase Right is
being exercised;

provided, however, that if such Fundamental Change Repurchase Date is after
a record date for the payment of an installment of interest and on or before
the related interest payment date, then the accrued and unpaid interest, if
any, to, but excluding, such interest payment date will be paid

 17
 

 

on such interest payment
date to the Holder of record of such Securities at the close of business on
such record date (without any surrender of such Securities by such Holder), and
the Holder surrendering such Securities for repurchase will not be entitled to
any such accrued and unpaid interest unless such Holder was also the Holder of
record of such Securities at the close of business on such record date.

If such Securities
are held in book-entry form through the Depositary, the Purchase Notice shall
comply with applicable procedures of the Depositary.

Upon such delivery
of Securities to the Company (if it is acting as its own Paying Agent) or such
Paying Agent, such Holder shall be entitled to receive, upon request, from the
Company or such Paying Agent, as the case may be, a nontransferable receipt of
deposit evidencing such delivery.

Notwithstanding
anything herein to the contrary, any Holder that has delivered the Purchase
Notice contemplated by this Section 3.02(A) to
the Company (if it is acting as its own Paying Agent) or to a Paying Agent
designated by the Company for such purpose in the Fundamental Change Notice
shall have the right to withdraw such Purchase Notice by delivery, at any time
prior to the close of business on the Business Day immediately preceding the
Fundamental Change Repurchase Date, of a written notice of withdrawal to the
Company (if acting as its own Paying Agent) or the Paying Agent, which notice
shall contain the information specified in Section 3.02(B)(xi).

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

(B)           Within twenty (20)
Business Days after the occurrence of a Fundamental Change, the Company shall
mail, or cause to be mailed, to all Holders of the Securities at their addresses
shown in the register of the Registrar, and to beneficial owners as required by
applicable law, a notice (the “Fundamental
Change Notice”) of the occurrence of such Fundamental Change and the
Fundamental Change Repurchase Right arising as a result thereof. The Company
shall deliver a copy of the Fundamental Change Notice to the Trustee and shall
publicly release, through a reputable national newswire service, such
Fundamental Change Notice.

Each Fundamental Change
Notice shall state:

(i)         the
events causing the Fundamental Change;

(ii)        the
date of such Fundamental Change;

(iii)       the
Fundamental Change Repurchase Date;

(iv)       the
date by which the Fundamental Change Repurchase Right must be exercised;

(v)        the
Fundamental Change Repurchase Price plus accrued and unpaid interest, if any,
to, but excluding, the Fundamental Change Repurchase Date;

 18
 

 

(vi)       the
names and addresses of the Paying Agent and the Conversion Agent;

(vii)      a
description of the procedures which a Holder must follow to exercise the Fundamental
Change Repurchase Right;

(viii)     that,
in order to exercise the Fundamental Change Repurchase Right, the Securities
(together with all necessary endorsements) must be surrendered for payment of
the Fundamental Change Repurchase Price plus accrued and unpaid interest, if
any, payable as herein provided upon Repurchase Upon Fundamental Change;

(ix)       that
the Fundamental Change Repurchase Price, plus accrued and unpaid interest, if
any, to, but excluding, the Fundamental Change Repurchase Date, for any Security
as to which a Purchase Notice has been given and not withdrawn will be paid as
promptly as practicable, but in no event more than the third (3rd) Business Day
after the later of such Fundamental Change Repurchase Date and the time of
delivery of the Security (together with all necessary endorsements) as
described in clause (viii) above;
provided, however,
that if such Fundamental Change Repurchase Date is after a record date for the
payment of an installment of interest and on or before the related interest
payment date, then the accrued and unpaid interest, if any, to, but excluding,
such interest payment date will be paid on such interest payment date to the
Holder of record of such Security at the close of business on such record date
(without any surrender of such Securities by such Holder), and the Holder
surrendering such Security for repurchase will not be entitled to any such
accrued and unpaid interest unless such Holder was also the Holder of record of
such Security at the close of business on such record date;

(x)         that, except as otherwise provided
herein with respect to a Fundamental Change Repurchase Date that is after a
record date for the payment of an installment of interest and on or before the
related interest payment date, on and after such Fundamental Change Repurchase
Date (unless there shall be a Default in the payment of the consideration
payable as herein provided upon Repurchase Upon Fundamental Change), interest
on Securities subject to Repurchase Upon Fundamental Change will cease to
accrue, and all rights of the Holders of such Securities shall terminate, other
than the right to receive, in accordance herewith, the consideration payable as
herein provided upon Repurchase Upon Fundamental Change;

(xi)       that
a Holder will be entitled to withdraw its election in the Purchase Notice if
the Company (if acting as its own Paying Agent), or the Paying Agent receives,
prior to the close of business on the Business Day immediately preceding the
Fundamental Change Repurchase Date, or such longer period as may be required by
law, a letter or telegram, telex or facsimile transmission (receipt of which is
confirmed and promptly followed by a letter) setting forth (I) the name of
such Holder, (II) a statement that such Holder is withdrawing its election
to have Securities purchased by the Company on such Fundamental Change
Repurchase Date pursuant to a Repurchase Upon Fundamental Change, (III) the
certificate number(s) of such Securities to be so

 19
 

 

withdrawn, if such Securities are in certificated form, (IV) the
principal amount of the Securities of such Holder to be so withdrawn, which
amount must be $1,000 or an integral multiple thereof and (V) the
principal amount, if any, of the Securities of such Holder that remain subject
to the Purchase Notice delivered by such Holder in accordance with this Section 3.02, which amount must be
$1,000 or an integral multiple thereof;

(xii)      the
Conversion Rate and any adjustments to the Conversion Rate that will result
from such Fundamental Change;

(xiii)     that
Securities with respect to which a Purchase Notice is given by a Holder may be
converted pursuant to Article X
only if such Purchase Notice has been withdrawn in accordance with this Section 3.02 or if there shall be a
Default in the payment of the Fundamental Change Repurchase Price or in the
accrued and unpaid interest, if any, payable as herein provided upon Repurchase
Upon Fundamental Change; and

(xiv)     the
CUSIP number or numbers, as the case may be, of the Securities.

At the Company’s request,
upon prior notice reasonably acceptable to the Trustee, the Trustee shall mail
such Fundamental Change Notice in the Company’s name and at the Company’s
expense; provided, however, that the form and
content of such Fundamental Change Notice shall be prepared by the Company.

No failure of the Company
to give a Fundamental Change Notice shall limit any Holder’s right pursuant
hereto to exercise a Fundamental Change Repurchase Right.

(C)           Subject to the
provisions of this Section 3.02,
the Company shall pay, or cause to be paid, the Fundamental Change Repurchase
Price, plus accrued and unpaid interest, if any, to, but excluding, the
Fundamental Change Repurchase Date, with respect to each Security as to which
the Fundamental Change Repurchase Right shall have been exercised to the Holder
thereof as promptly as practicable, but in no event later than the third (3rd)
Business Day after the later of the Fundamental Change Repurchase Date and the
time such Security is surrendered to the Paying Agent; provided,
however, that if such Fundamental Change
Repurchase Date is after a record date for the payment of an installment of
interest and on or before the related interest payment date, then the accrued
and unpaid interest, if any, to, but excluding, such interest payment date will
be paid on such interest payment date to the Holder of record of such Security
at the close of business on such record date, and the Holder surrendering such
Security for repurchase will not be entitled to any such accrued and unpaid
interest unless such Holder was also the Holder of record of such Security at
the close of business on such record date.

(D)          Prior to 11:00 A.M.,
New York City time on a Fundamental Change Repurchase Date, the Company shall
deposit with a Paying Agent (or, if the Company is acting as its own Paying
Agent, segregate and hold in trust in accordance with Section 2.04) money, in funds
immediately available on the Fundamental Change Repurchase Date, sufficient to
pay the consideration payable as herein provided upon Repurchase Upon
Fundamental Change for all of the Securities that are to be repurchased by the
Company on such Fundamental Change

 20
 

 

Repurchase Date pursuant to a Repurchase Upon Fundamental Change. The
Paying Agent shall return to the Company, as soon as practicable, any money not
required for that purpose.

(E)           Once the Fundamental
Change Notice and the Purchase Notice have been duly given in accordance with
this Section 3.02, the
Securities to be repurchased pursuant to a Repurchase Upon Fundamental Change
shall, on the Fundamental Change Repurchase Date, become due and payable in
accordance herewith, and, on and after such date (unless there shall be a
Default in the payment of the consideration payable as herein provided upon
Repurchase Upon Fundamental Change), except as otherwise provided herein with
respect to a Fundamental Change Repurchase Date that is after a record date for
the payment of an installment of interest and on or before the related interest
payment date, such Securities shall cease to bear interest, and all rights of
the Holders of such Securities shall terminate, other than the right to
receive, in accordance herewith, such consideration.

(F)           Securities with
respect to which a Purchase Notice has been duly delivered in accordance with
this Section 3.02 may be
converted pursuant to Article X
only if such Purchase Notice has been withdrawn in accordance with this Section 3.02 or if there shall be a
Default in the payment of the consideration payable as herein provided upon
Repurchase Upon Fundamental Change.

(G)           If any Security
shall not be paid upon surrender thereof for Repurchase Upon Fundamental
Change, the principal of, and accrued and unpaid interest on, such Security
shall, until paid, bear interest, payable in cash, at the rate borne by such
Security on the principal amount of such Security, and such Security shall
continue to be convertible pursuant to Article X.

(H)          Any Security which is
to be submitted for Repurchase Upon Fundamental Change only in part shall be
delivered pursuant to this Section 3.02
(with, if the Company or the Trustee so requires, due endorsement by, or a
written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or its attorney duly authorized in
writing, with a medallion guarantee), and the Company shall execute, and the
Trustee shall authenticate and make available for delivery to the Holder of
such Security without service charge, a new Security or Securities, of any
authorized denomination as requested by such Holder, of the same tenor and in
aggregate principal amount equal to the portion of such Security not duly
submitted for Repurchase Upon Fundamental Change.

(I)            Notwithstanding
anything herein to the contrary, there shall be no purchase of any Securities
pursuant to this Section 3.02
on a Fundamental Change Repurchase Date if, on such date, the principal amount
of the Securities shall have been accelerated in accordance with this Indenture
and such acceleration shall not have been rescinded on or prior to such date in
accordance with this Indenture. The Paying Agent will promptly return to the
respective Holders thereof any Securities held by it during the continuance of
such an acceleration.

(J)            Notwithstanding
anything herein to the contrary, if the option granted to Holders to require
the repurchase of the Securities upon the occurrence of a Fundamental Change is
determined to constitute a tender offer, the Company shall comply with all
applicable tender offer rules under the Exchange Act, including Rule 13e-4
and Regulation 14E thereunder, and

 21
 

 

with all other applicable laws, and will file a Schedule TO or any
other schedules required under the Exchange Act or any other applicable laws.

(K)          As used herein and in
the Securities, a “Fundamental Change”
shall be deemed to have occurred upon the occurrence of either a “Change in
Control” or a “Termination of Trading.”

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

(a)           any “person” or “group” (as such
terms are used in Sections 13(d) and 14(d) of the Exchange Act) is or
becomes the “beneficial owner” (as such term is used in Rule 13d-3
under the Exchange Act), directly or indirectly, of fifty percent (50%) or more
of the Company’s Voting Stock; or

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

(c)           the Company consolidates with, or
merges with or into, another person or any person consolidates with, or merges
with or into, the Company, unless either:

(1)           the persons that “beneficially owned”
(as such term is used in Rule 13d-3 under the Exchange Act),
directly or indirectly, the shares of the Company’s Voting Stock immediately
prior to such consolidation or merger, “beneficially own,” directly or
indirectly, immediately after such consolidation or merger, shares of the
surviving or continuing corporation’s Voting Stock representing at least a
majority of the total outstanding voting power of all outstanding classes of
the Voting Stock of the surviving or continuing corporation in substantially
the same proportion as such ownership immediately prior to such consolidation
or merger; or

(2)           at least ninety percent (90%) of the
consideration (other than cash payments for fractional shares or pursuant to
statutory appraisal rights) in such consolidation or merger consists of common
stock and any associated rights traded on a U.S. national securities exchange
or quoted on the Nasdaq National Market (or which will be so traded or quoted
when issued or exchanged in connection with such consolidation or merger), and,
as a result of such consolidation or merger, the Securities become convertible
solely (except as to any cash payments for the Principal Return, and cash in
lieu of fractional shares, due upon conversion) into such common stock and
associated rights (such a

 22
 

 

consolidation
or merger that satisfies the conditions set forth in this clause  (2),
a “Listed Stock Business Combination”);
or

(d)           the following persons cease for any
reason to constitute a majority of the Board of Directors:

(1)           individuals who on the Issue Date
constituted the Board of Directors; and

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

(e)           the Company is liquidated or
dissolved or the holders of the Company’s Capital Stock approve any plan or
proposal for the liquidation or dissolution of the Company.

(ii)     A “Termination
of Trading” shall be deemed to occur if the Common Stock (or other
common stock into which the Securities are then convertible) is neither listed
for trading on a U.S. national securities exchange nor approved for trading on
an established over-the-counter trading market in the United States.

Notwithstanding anything
herein or in the Securities to the contrary, a Change in Control will be deemed
not to have occurred if the Closing Sale Price per share of Common Stock for
each of twenty (20) or more Trading Days in a period of thirty (30) consecutive
Trading Days ending on the last Trading Day of the calendar quarter immediately
preceding the effective date of the relevant transaction that would otherwise
have constituted a Change in Control exceeds one hundred and thirty percent
(130%) of the Conversion Price in effect on the last Trading Day of such
immediately preceding calendar quarter.

IV.           COVENANTS

4.01         PAYMENT OF SECURITIES.

The Company shall pay all
amounts due with respect to the Securities on the dates and in the manner
provided in the Securities and this Indenture. All such amounts shall be
considered paid on the date due if the Paying Agent holds (or, if the Company
is acting as Paying Agent, the Company has segregated and holds in trust in accordance
with Section 2.04) on that date money
sufficient to pay the amount then due with respect to the Securities (unless
there shall be a Default in the payment of such amounts to the respective
Holder(s)). The Company will pay, in money of the United States that at the
time of payment is legal tender for payment of public and private debts, all
amounts due in cash with respect to the Securities, which amounts shall be paid
(A) in the case of a Security that is in global form, by wire transfer of
immediately available funds to the account designated by the Depositary or its
nominee; (B) in the case of a Security

 23
 

 

that is held, other than
global form, by a Holder of more than five million dollars ($5,000,000) in
aggregate principal amount of Securities, by wire transfer of immediately
available funds to the account specified by such Holder or, if such Holder does
not specify an account, by mailing a check to the address of such Holder set
forth in the register of the Registrar; and (C) in the case of a Security
that is held, other than global form, by a Holder of five million dollars
($5,000,000) or less in aggregate principal amount of Securities, by mailing a
check to the address of such Holder set forth in the register of the Registrar.

The Company shall pay, in
cash, interest on any overdue amount (including, to the extent permitted by
applicable law, overdue interest) at the rate borne by the Securities.

4.02         MAINTENANCE OF OFFICE OR AGENCY.

The Company will
maintain, or cause to be maintained, in the Borough of Manhattan, The City of
New York, an office or agency (which may be an office of the Trustee or an
Affiliate of the Trustee, Registrar or co-Registrar) where Securities may be
surrendered for registration of transfer or exchange, payment or conversion. The
Company will give prompt written notice to the Trustee of the location, and any
change in the location, of such office or agency. If at any time the Company
shall fail to maintain, or fail to cause to maintain, any such required office
or agency or shall fail to furnish the Trustee with the address thereof, such
presentations and surrenders may be made or served at the Corporate Trust
Office of the Trustee. The Company will maintain, or cause to be maintained, in
the Borough of Manhattan, The City of New York, an office or agency where
notices and demands to or upon the Company in respect of the Securities and
this Indenture may be served, provided that such office or agency may instead
be at the principal office of the Company located in the United States.

The Company may also from
time to time designate one or more other offices or agencies where the
Securities may be presented or surrendered for any or all such purposes and may
from time to time rescind such designations; provided,
however, that no such designation or
rescission shall in any manner relieve the Company of its obligation to
maintain an office or agency in the Borough of Manhattan, The City of New York
for such purposes. The Company will give prompt written notice to the Trustee
of any such designation or rescission and of any change in the location of any
such other office or agency.

The Company hereby
designates the Corporate Trust Office of the Trustee as an agency of the
Company in accordance with Section 2.03.

4.03         RULE 144A INFORMATION AND ANNUAL REPORTS.

(A)          At
any time when the Company is not subject to, or is in violation of, Sections 13
or 15(d) of the Exchange Act, the Company shall promptly provide to the
Trustee and shall, upon request, provide to any Holder, beneficial owner or
prospective purchaser of Securities or shares of Common Stock issued upon
conversion of any Securities, the information required to be delivered pursuant
to Rule 144A(d)(4) under the Securities Act to facilitate the resale
of such Securities or shares of Common Stock pursuant to Rule 144A; provided, however, that
the Company shall not be obligated to provide such information if none of the
outstanding Securities constitute Restricted Securities. The Company shall take
such further action as any Holder or

 24
 

 

beneficial holder of such Securities or shares of Common Stock may
reasonably request in writing to the extent required from time to time to
enable such Holder or beneficial holder to sell its Securities or shares of
Common Stock in accordance with Rule 144A, as such rule may be
amended from time to time.

(B)           The Company shall
deliver to the Trustee, no later than the third (3rd) Business Day after the
date such report is required to be filed with the SEC pursuant to the Exchange
Act (including, without limitation, to the extent applicable, any extension
permitted by Rule 12b-25 under the Exchange Act), a copy of each
report the Company is required to file with the SEC pursuant to Section 13
or 15(d) of the Exchange Act; provided, however, that
the Company shall not be required to deliver to the Trustee any material for
which the Company has sought and received confidential treatment by the SEC; provided further, each such report will be deemed to be so
delivered to the Trustee if the Company files such report with the SEC
through the SEC’s EDGAR database no later than the time such report is required
to be filed with the SEC pursuant to the Exchange Act (including, without
limitation, to the extent applicable, any extension permitted by Rule 12b-25
under the Exchange Act). In the event the Company is at any time no longer
subject to the reporting requirements of Section 13 or Section 15(d) of
the Exchange Act, the Company shall continue to provide the Trustee and, upon
request, any Holder, within thirty (30) calendar days after the date the
Company would have been required to file such reports with the SEC, annual and
quarterly consolidated financial statements substantially equivalent to
financial statements that would have been included in reports filed with the
SEC if the Company were subject to the reporting requirements of Section 13
or Section 15(d) of the Exchange Act, including, with respect to
annual information only, a report thereon by the Company’s certified
independent public accountants as such would be required in such reports filed
with the SEC and, in each case, together with a management’s discussion and
analysis of financial condition and results of operations which would be so
required. The Company also shall comply with the other provisions of TIA § 314(a).
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 an Officer’s Certificates).

4.04         COMPLIANCE CERTIFICATE.

The Company shall deliver
to the Trustee, within ninety (90) calendar days after the end of each fiscal
year of the Company, or, if earlier, by the date the Company is, or would be,
required to file with the SEC the Company’s annual report (whether on Form 10-K
under the Exchange Act or another appropriate form) for such fiscal year, a
certificate of two (2) or more Officers stating whether or not the
signatories to such Officer’s Certificate have actual knowledge of any Default
or Event of Default by the Company in performing any of its obligations under this
Indenture or the Securities. If such signatories do know of any such Default or
Event of Default, then such certificate shall describe the Default or Event of
Default and its status.

 25

 

4.05         STAY, EXTENSION AND USURY LAWS.

The Company covenants (to
the extent that it may lawfully do so) that it will 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 wherever enacted, now or at any time
hereafter in force, which may affect the covenants or the performance of this
Indenture; and the Company (in each case, to the extent that it may lawfully do
so) hereby expressly waives all benefit or advantage of any such law, and
covenants that it will not, 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 has been enacted.

4.06         CORPORATE EXISTENCE.

Subject to Article V, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate
existence and the corporate existence of each of its Subsidiaries, in
accordance with the respective organizational documents of the Company and of
each Subsidiary, and the rights (charter and statutory), licenses and
franchises of the Company and its Subsidiaries; provided,
however, that the Company shall not be
required to preserve any such right, license or franchise, or the corporate
existence of any Subsidiary, if in the good faith judgment of the Board of
Directors (i) such preservation or existence is not material to the
conduct of business of the Company and (ii) the loss of such right, license
or franchise or the dissolution of such Subsidiary does not have a material
adverse impact on the Holders.

4.07         NOTICE OF DEFAULT.

Upon the Company becoming
aware of the occurrence of any Default or Event of Default, the Company shall
give prompt written notice of such Default or Event of Default, and any
remedial action proposed to be taken, to the Trustee.

4.08         FURTHER INSTRUMENTS AND ACTS.

Upon request of the Trustee, the Company shall 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.

4.09         ADDITIONAL INTEREST NOTICE.

In the event that the Company is required to pay
additional interest to holders of Securities pursuant to the Registration
Rights Agreement, the Company will provide written notice (“Additional Interest Notice”) to the Trustee of its
obligation to pay additional interest no later than fifteen (15) calendar days
prior to the proposed payment date for the additional interest (or, if the
applicable Event (as defined in the Registration Rights Agreement) giving rise
to the obligation to pay such additional interest occurs on or after the
fifteenth (15th) calendar day before such payment date, no later than the
Business Day after the date such Event occurs). Each Additional Interest Notice
shall set forth the amount of Additional Interest to be paid by the Company on
such payment date. The Trustee shall not at any time be under any duty or
responsibility to any Holder to determine the amount of additional interest, or
with respect to the

 26
 

 

nature, extent or calculation of the amount of
additional interest owed, or with respect to the method employed in such
calculation of the additional interest.

V.            SUCCESSORS

5.01         WHEN COMPANY MAY MERGE, ETC.

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

The Company shall deliver
to the Trustee prior to the consummation of the proposed transaction an Officer’s
Certificate to the foregoing effect and an Opinion of Counsel (which may rely
upon such Officer’s Certificate as to the absence of Defaults and Events of
Default) stating that the proposed transaction and such supplemental indenture
will, upon consummation of the proposed transaction, comply with this
Indenture.

5.02         SUCCESSOR SUBSTITUTED.

Upon any consolidation,
merger or any sale, transfer, lease, conveyance or other disposition of all or
substantially all of the property or assets of the Company, the successor
person formed by such consolidation or into which the Company is merged or to
which such sale, transfer, lease, conveyance or other disposition is made shall
succeed to, and, except in the case of a lease, be substituted for, and may
exercise every right and power of, and shall assume every duty and obligation
of, the Company under this Indenture with the same effect as if such successor
had been named as the Company herein. When the successor assumes all
obligations of the Company hereunder, except in the case of a lease, all
obligations of the predecessor shall terminate.

VI.           DEFAULTS
AND REMEDIES

6.01         EVENTS OF DEFAULT.

An “Event of
Default” occurs if:

(i)         the Company fails to pay the principal of, or premium, if
any, on, any Security when the same becomes due and payable, whether at
maturity, on a Fundamental Change Repurchase Date with respect to a Repurchase
Upon Fundamental Change or otherwise;

 27
 

 

(ii)        the Company fails to pay an installment of interest on any
Security when due, if such failure continues for thirty (30) days after the
date when due;

(iii)       the Company fails to satisfy its conversion obligations upon
exercise of a Holder’s conversion rights pursuant hereto;

(iv)       the Company fails to timely provide a Fundamental Change
Notice, as required by the provisions of this Indenture, or fails to timely
provide any notice pursuant to, and in accordance with, Section 10.14(D);

(v)        the Company fails to comply with any other term, covenant or
agreement set forth in the Securities or this Indenture and such failure
continues for the period, and after the notice, specified below;

(vi)       the Company or any of its Subsidiaries defaults in the payment
when due, after the expiration of any applicable grace period, of principal of,
or premium, if any, or interest on, Indebtedness for money borrowed, in the
aggregate principal amount then outstanding of fifty million dollars ($50,000,000)
or more, or the acceleration of Indebtedness of the Company or any of its
Subsidiaries for money borrowed in such aggregate principal amount or more so
that it becomes due and payable prior to the date on which it would otherwise
become due and payable and such default is not cured or waived, or such
acceleration is not rescinded, within sixty (60) days after notice to the
Company by the Trustee or to the Company and the Trustee by Holders of at least
twenty five percent (25%) in aggregate principal amount of the Securities then
outstanding, each in accordance with this Indenture;

(vii)      the Company or any of its Subsidiaries fails, within sixty (60)
days, to pay, bond or otherwise discharge any final, non-appealable judgments
or orders for the payment of money the total uninsured amount of which for the
Company or any of its Subsidiaries exceeds fifty million dollars ($50,000,000),
which are not stayed on appeal;

(viii)     the Company or any of its Significant Subsidiaries or any group
of Subsidiaries that in the aggregate would constitute a Significant Subsidiary
of the Company, pursuant to, or within the meaning of, any Bankruptcy Law,
insolvency law, or other similar law now or hereafter in effect or otherwise,
either:

(A)          commences a voluntary case,

(B)           consents to the entry of an order for
relief against it in an involuntary case,

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

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

 28
 

 

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

(A)          is for relief against the Company or
any of its Significant Subsidiaries or any group of Subsidiaries that in the
aggregate would constitute a Significant Subsidiary of the Company in an
involuntary case or proceeding, or adjudicates the Company or any of its
Significant Subsidiaries or any group of Subsidiaries that in the aggregate
would constitute a Significant Subsidiary of the Company insolvent or bankrupt,

(B)           appoints a Custodian of the Company
or any of its Significant Subsidiaries or any group of Subsidiaries that in the
aggregate would constitute a Significant Subsidiary of the Company for all or
substantially all of the property of the Company or any such Significant
Subsidiary or any group of Subsidiaries that in the aggregate would constitute
a Significant Subsidiary of the Company, as the case may be, or

(C)           orders the winding up or liquidation
of the Company or any of its Significant Subsidiaries or any group of
Subsidiaries that in the aggregate would constitute a Significant Subsidiary of
the Company,

and, in the case of each of the foregoing clauses (A),
(B) and (C) of this Section 6.01(ix),
the order or decree remains unstayed and in effect for at least sixty (60)
consecutive days.

The term “Bankruptcy Law” means Title 11, U.S. Code or any similar
U.S. Federal or State law for the relief of debtors, or any analogous foreign
law applicable to the Company or its Subsidiaries, as the case may be. The term
“Custodian” means any receiver, trustee,
assignee, liquidator or similar official under any Bankruptcy Law.

A Default under clause (v) above is not an Event of Default until (I) the
Trustee notifies the Company, or the Holders of at least twenty five percent
(25%) in aggregate principal amount of the Securities then outstanding notify
the Company and the Trustee in writing, of the Default and (II) the
Default is not cured within sixty (60) days after receipt of such notice. Such
notice must specify the Default, demand that it be remedied and state that the
notice is a “Notice of Default.”  If the Holders of at least twenty five
percent (25%) in aggregate principal amount of the outstanding Securities
request the Trustee to give such notice on their behalf, the Trustee shall do
so. When a Default is cured, it ceases to exist for all purposes under this
Indenture.

6.02         ACCELERATION.

If an Event of Default
(excluding an Event of Default specified in Section 6.01(viii) or (ix) with respect to the Company (but including an
Event of Default specified in Section 6.01(viii) or (ix) solely with respect to a Significant Subsidiary
of the Company or any group of Subsidiaries that in the aggregate would
constitute a Significant Subsidiary of the Company)) occurs and is continuing,
the Trustee by notice to the Company, or the Holders of at least twenty five
percent (25%) in aggregate principal amount of the Securities then outstanding
by notice to the Company and the Trustee, may declare the Securities to be
immediately due and payable in

 29
 

 

full. Upon such
declaration, the principal of, and any accrued and unpaid interest (including
any additional interest) on, all Securities shall be due and payable
immediately. If an Event of Default specified in Section 6.01(viii) or (ix) with respect to the Company (excluding, for
purposes of this sentence, an Event of Default specified in Section 6.01(viii) or (ix) solely
with respect to a Significant Subsidiary of the Company or any group of
Subsidiaries that in the aggregate would constitute a Significant Subsidiary of
the Company) occurs, the principal of, and accrued and unpaid interest
(including any additional interest) on, all the Securities shall ipso facto become and be immediately due and payable without
any declaration or other act on the part of the Trustee or any Holder. The
Holders of a majority in aggregate principal amount of the Securities then
outstanding by written notice to the Trustee may rescind or annul an
acceleration and its consequences if (A) the rescission would not conflict
with any order or decree, (B) all existing Events of Default, except the
nonpayment of principal or interest (including additional interest) that has
become due solely because of the acceleration, have been cured or waived and (C) all
amounts due to the Trustee under Section 7.07
have been paid.

6.03         OTHER REMEDIES.

Notwithstanding any other
provision of this Indenture, if an Event of Default occurs and is continuing,
and a Responsible Officer of the Trustee has actual knowledge of such Event of
Default, the Trustee may pursue any available remedy by proceeding at law or in
equity to collect the payment of amounts due with respect to 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 Holder in exercising any right or remedy accruing upon an Event of Default
shall not impair the right or remedy or constitute a waiver of or acquiescence
in the Event of Default. All remedies are cumulative.

6.04         WAIVER OF PAST DEFAULTS.

Subject to Sections  6.07 and 9.02, the Holders of a majority in aggregate principal
amount of the Securities then outstanding may, by notice to the Trustee, waive
any past Default or Event of Default and its consequences, other than (A) a
Default or Event of Default in the payment of the principal of, or premium, if
any, or interest or additional interest on, any Security, or in the payment of
the Fundamental Change Repurchase Price (or accrued and unpaid interest, if
any, payable as herein provided, upon Repurchase Upon Fundamental Change), (B) a
Default or Event of Default arising from a failure by the Company to convert
any Securities in accordance with this Indenture or (C) any Default or
Event of Default in respect of any provision of this Indenture or the
Securities which, under Section 9.02,
cannot be modified or amended without the consent of the Holder of each
outstanding Security affected. When a Default or an Event of Default is waived,
it is cured and ceases to exist for all purposes under this Indenture. This Section 6.04 shall be in lieu of TIA § 316(a)(1)(B),
and, as permitted by the TIA, TIA § 316(a)(1)(B) is hereby expressly
excluded from this Indenture.

 30
 

 

6.05         CONTROL BY MAJORITY.

The Holders of a majority
in aggregate principal amount of the Securities then outstanding may direct the
time, method and place of conducting any proceeding for any remedy available to
the Trustee or exercising any trust or power conferred on it. However, the
Trustee may refuse to follow any direction that conflicts with law or this
Indenture, is unduly prejudicial to the rights of other Holders or would
involve the Trustee in personal liability unless the Trustee is offered
indemnity reasonably satisfactory to it; provided, that
the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction. This Section 6.05
shall be in lieu of TIA § 316(a)(1)(A), and, as permitted by the TIA, TIA §
316(a)(1)(A) is hereby expressly excluded from this Indenture.

6.06         LIMITATION ON SUITS.

Except as provided in Section 6.07, a Securityholder may not institute any
proceeding under this Indenture, or for the appointment of a receiver or a
trustee, or for any other remedy under this Indenture unless:

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

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

(iii)       such
Holder or Holders offer and, if requested, provide to the Trustee indemnity
reasonably satisfactory to the Trustee against any loss, liability or expense
to or of the Trustee in connection with pursuing such remedy;

(iv)       the
Trustee does not comply with the request within sixty (60) days after receipt
of such notice, request and offer of indemnity; and

(v)        during
such sixty (60) day period, the Holders of a majority in aggregate principal
amount of the Securities then outstanding do not give the Trustee a direction
inconsistent with the request.

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

6.07         RIGHTS OF HOLDERS TO RECEIVE PAYMENT.

Notwithstanding any other
provision of this Indenture, the right of any Holder to receive payment of all
amounts due with respect to the Securities, on or after the respective due
dates as provided herein, or to bring suit for the enforcement of any such
payment on or after such respective dates, shall not be impaired or affected
without the consent of the Holder.

 31
 

 

Notwithstanding any other
provision of this Indenture, the right of any Holder to convert the Security in
accordance with this Indenture, or to bring suit for the enforcement of such
right, shall not be impaired or affected without the consent of the Holder.

6.08         COLLECTION SUIT BY TRUSTEE.

If an Event of Default
specified in Section 6.01(i) or (ii) occurs and is continuing, the Trustee may recover
judgment in its own name and as trustee of an express trust against the Company
for the whole amount due with respect to the Securities, including any unpaid
and accrued interest.

6.09         TRUSTEE MAY FILE PROOFS OF CLAIM.

The Trustee may file such
proofs of claim and other papers or documents as may be necessary or advisable
in order to have the claims of the Trustee, any predecessor Trustee and the
Securityholders allowed in any judicial proceedings relative to the Company or
its creditors or properties.

The Trustee may collect
and receive any moneys or other property payable or deliverable on any such
claims and to distribute the same, and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or similar official in any 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 the Trustee any amount due it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, and any other amounts due the Trustee under Section 7.07.

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

6.10         PRIORITIES.

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

First:                                              to
the Trustee for amounts due under Section 7.07;

Second:                              to
Securityholders for all amounts due and unpaid on the Securities, without
preference or priority of any kind, according to the amounts due and payable on
the Securities; and

Third:                                         the
balance, if any, to the Company.

The Trustee, upon prior
written notice to the Company, may fix a record date and payment date for any
payment by it to Securityholders pursuant to this Section 6.10.
At least fifteen (15) days before each such record date, the Trustee shall mail
to each Holder and the Company a written notice that states such record date
and payment date and the amount of such payment.

 32
 

 

6.11         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 other than
the Trustee of an undertaking to pay the costs of the suit, and the court in
its discretion may assess reasonable costs, including reasonable attorneys’
fees, 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 6.11 does not apply to a suit by the Trustee, a
suit by a Holder pursuant to Section 6.07
or a suit by Holders of more than ten percent (10%) in aggregate principal
amount of the outstanding Securities.

VII.          TRUSTEE

7.01         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 their 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:

(i)         the Trustee need perform only those duties that are
specifically set forth in this Indenture and no implied covenants or
obligations shall be read into this Indenture against the Trustee; and

(ii)        in the absence of bad faith, willful misconduct or negligence
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; but in the case of any such certificates or opinions which by any
provision hereof are specifically required to be furnished to the Trustee, the
Trustee shall examine the certificates and opinions to determine whether or not
they conform to the requirements of this Indenture (but need not confirm or
investigate the accuracy of mathematical calculations or other facts stated
therein).

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

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

 33
 

 

(ii)        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 6.05.

(D)          Every provision of this Indenture that
in any way relates to the Trustee is subject to the provisions of this Section 7.01.

(E)           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 shall be segregated from
other funds as directed in writing by the Company or as required by law and
shall be invested by the Trustee pursuant to the written instructions of the
Company reasonably satisfactory to the Trustee.

(F)           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, if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity
against such risk or liability is not reasonably assured to it.

7.02         RIGHTS OF TRUSTEE.

(A)          Subject to Section 7.01, the Trustee may conclusively rely 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; if, however, the Trustee shall determine to make such further
inquiry or investigation, it shall be entitled during normal business hours to
examine the relevant books, records and premises of the Company, personally or
by agent or attorney upon reasonable prior notice, 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.

(B)           Before the Trustee acts or refrains
from acting, it may require an Officer’s Certificate and/or an Opinion of
Counsel. The Trustee shall not be liable for any action it takes or omits to
take in good faith in reliance on such Officer’s Certificate or Opinion of
Counsel.

(C)           Any request or direction of the
Company mentioned herein shall be sufficiently evidenced by a Company Request
or Company Order, and any resolution of the Board of Directors shall be
sufficiently evidenced by a Board Resolution.

(D)          The Trustee may consult with counsel
of its own selection, and the advice of such counsel or any Opinion of Counsel
shall be full and complete authorization and protection in respect of any
action taken, suffered or omitted by it hereunder in good faith and in reliance
thereon.

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

(F)           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 discretion, rights or powers conferred upon it by this
Indenture.

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(G)          Except with respect to Section 6.01, the Trustee shall have no duty to inquire
as to the performance of the Company with respect to the covenants contained in
Article IV. In addition, the
Trustee shall not be deemed to have knowledge of an Event of Default except (i) any
Default or Event of Default occurring pursuant to Sections
6.01(i) or (ii) or
(ii) any Default or Event of Default of which a Responsible Officer of the
Trustee shall have received written notification or obtained actual knowledge. Delivery
of reports, information and documents to the Trustee under Article IV
(other than Sections  4.04
and 4.07) is for informational purposes
only and the Trustee’s receipt of the foregoing 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 on Officer’s
Certificates).

(H)          Subject to Section 7.01(A), the
Trustee shall be under no obligation to exercise any of the rights or powers
vested by this Indenture at the request or direction of any of the Holders
pursuant to this Indenture unless such Holders shall have offered to the
Trustee security or indemnity reasonably satisfactory to the Trustee against
the costs, expenses and liabilities which might be incurred by it in compliance
with such request or direction.

(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 each agent, custodian and
other Person employed to act hereunder.

(J)           The Trustee may request that the
Company deliver an Officer’s Certificate setting forth the names of individuals
and/or titles of officers authorized at such time to take specified actions
pursuant to this Indenture, which Officer’s Certificate may be signed by any
person authorized to sign an Officer’s Certificate, including any person
specified as so authorized in any such certificate previously delivered and not
superseded.

7.03         INDIVIDUAL RIGHTS OF TRUSTEE.

The Trustee in its
individual or any other capacity may become the owner or pledgee of Securities
and may otherwise deal with the Company or any of its Affiliates with the same
rights the Trustee would have if it were not Trustee. Any Securities Agent may
do the same with like rights. The Trustee, however, must comply with Sections  7.10 and 7.11.

7.04         TRUSTEE’S DISCLAIMER.

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

7.05         NOTICE OF DEFAULTS.

If a Default or Event of
Default occurs and is continuing as to which the Trustee has received notice
pursuant to the provisions of this Indenture, or as to which a Responsible
Officer of the Trustee shall have actual knowledge, then the Trustee shall mail
to each Holder a notice of the

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Default or Event of
Default within thirty (30) days after receipt of such notice or after acquiring
such knowledge, as applicable, unless such Default or Event of Default has been
cured or waived; provided, however,
that, except in the case of a Default or Event of Default in payment of any
amounts due with respect to any Security, the Trustee may withhold such notice
if, and so long as it in good faith determines that, withholding such notice is
in the best interests of Holders.

7.06         REPORTS BY TRUSTEE TO HOLDERS.

Within sixty (60) days
after each May 15, beginning with May 15, 2007, the Trustee shall
mail to each Securityholder if required by TIA § 313(a) a brief report
dated as of such May 15 that complies with TIA § 313(c). In such event,
the Trustee also shall comply with TIA § 313(b).

A copy of each report at
the time of its mailing to Securityholders shall be mailed by first class mail
to the Company and filed by the Trustee with the SEC and each stock exchange,
if any, on which the Securities are listed. The Company shall promptly notify
the Trustee of the listing or delisting of the Securities on or from any stock
exchange.

7.07         COMPENSATION AND INDEMNITY.

The Company shall pay to
the Trustee from time to time such compensation for its services as shall be
agreed upon in writing. The Trustee’s compensation shall not be limited by any
law on compensation of a trustee of an express trust. The Company shall
reimburse the Trustee upon request for all reasonable out-of-pocket expenses
incurred by it pursuant to, and in accordance with, any provision hereof. Such
expenses shall include the reasonable compensation and out-of-pocket expenses
of the Trustee’s agents and counsel.

The Company shall
indemnify each of the Trustee, each predecessor Trustee and their respective
agents for, and hold each of them harmless against, any and all loss,
liability, damage, claim or expense (including the reasonable fees and expenses
of counsel and taxes other than those based upon the income of the Trustee)
incurred by it in connection with the acceptance or administration of this
trust and the performance of its duties hereunder or in connection with
enforcing the provisions of this Section 7.07,
including the reasonable costs and expenses of defending itself against any
claim (whether asserted by the Company, any Holder or any other Person) or
liability in connection with the exercise or performance of any of its powers
and duties hereunder. The Company need not pay for any settlement made without
its consent. The Trustee shall notify the Company promptly of any claim for
which it may seek indemnification. The Company need not reimburse any expense
or indemnify against any loss or liability incurred by the Trustee through the
Trustee’s negligence, bad faith or willful misconduct.

To secure the Company’s
payment obligations in this Section 7.07,
the Trustee shall have a lien prior to the Securities on all money or property
held or collected by the Trustee, except that held in trust to pay amounts due
on particular Securities.

The indemnity obligations
of the Company with respect to the Trustee provided for in this Section 7.07 shall survive any resignation or removal
of the Trustee.

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When the Trustee incurs
expenses or renders services after an Event of Default specified in Section 6.01(viii) or (ix) occurs,
the expenses and the compensation for the services are intended to constitute
expenses of administration under any Bankruptcy Law.

7.08         REPLACEMENT OF TRUSTEE.

A resignation or removal
of the Trustee and appointment of a successor Trustee shall become effective
only upon the successor Trustee’s acceptance of appointment as provided in this
Section 7.08.

The Trustee may resign by
so notifying the Company in writing thirty (30) days prior to such resignation.
The Holders of a majority in aggregate principal amount of the Securities then
outstanding may remove the Trustee by so notifying the Trustee and the Company
in writing and may appoint a successor Trustee with the Company’s consent. The
Company may remove the Trustee if:

(i)         the
Trustee fails to comply with Section 7.10;

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

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

(iv)       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.

If a successor Trustee
does not take office within thirty (30) days after the retiring Trustee resigns
or is removed, the retiring Trustee (at the Company’s expense), the Company or
the Holders of at least ten percent (10%) in aggregate principal amount of the
outstanding Securities may petition any court of competent jurisdiction for the
appointment of a successor Trustee.

If the Trustee fails to
comply with Section 7.10, the Company or
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. Thereupon 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. The successor Trustee shall
mail a notice of its succession to Securityholders. The retiring Trustee shall
promptly transfer all property held by it as Trustee to the successor Trustee,
subject to the lien provided for in Section 7.07.

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7.09         SUCCESSOR TRUSTEE BY MERGER, ETC.

If the Trustee
consolidates with, merges or converts into, or transfers all or substantially
all of its corporate trust business to, another corporation, the successor
corporation without any further act shall be the successor Trustee, if such
successor corporation is otherwise eligible hereunder.

7.10         ELIGIBILITY; DISQUALIFICATION.

There shall at all
times be a Trustee hereunder which (A) is an entity organized and doing
business under the laws of the United States of America or of any state thereof
or the District of Columbia, (B) is authorized under such laws to exercise
corporate trustee power, (C) is subject to supervision or examination by
federal or state authorities and (D) has a combined capital and surplus of
at least $50 million as set forth in its most recent published annual report of
condition. The Trustee shall comply with TIA § 310(b). Nothing in this
Indenture shall prevent the Trustee from filing with the SEC the application
referred to in the penultimate paragraph of TIA § 310(b).

7.11         PREFERENTIAL COLLECTION OF
CLAIMS AGAINST COMPANY.

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

VIII.        DISCHARGE
OF INDENTURE

8.01         TERMINATION OF THE OBLIGATIONS OF THE COMPANY.

This Indenture shall cease to be of further effect if (a) either
(i) all outstanding Securities (other than Securities replaced pursuant to
Section 2.07 hereof) have been
delivered to the Trustee for cancellation or (ii) all outstanding
Securities have become due and payable at their scheduled maturity or upon
Repurchase Upon Fundamental Change, and in either case the Company irrevocably
deposits, prior to the applicable due date, with the Trustee or the Paying
Agent (if the Paying Agent is not the Company or any of its Affiliates) cash
sufficient to pay all amounts due and owing on all outstanding Securities
(other than Securities replaced pursuant to Section 2.07
hereof) on the Maturity Date or a Fundamental Change Repurchase Date, as the
case may be; (b) the Company pays to the Trustee all other sums payable
hereunder by the Company; (c) no Default or Event of Default with respect
to the Securities shall exist on the date of such deposit; (d) such
deposit will not result in a breach or violation of, or constitute a Default
under, this Indenture; and (e) the Company has delivered to the Trustee an
Officer’s Certificate and an Opinion of Counsel, each stating that all
conditions precedent provided for herein relating to the satisfaction and
discharge of this Indenture have been complied with; provided,
however, that Sections
2.02, 2.03, 2.04,
2.05, 2.06,
2.07, 2.08,
2.15, 2.16,
2.17, 3.02,
4.01, 4.02,
4.05, 7.07
and 7.08 and Articles
VIII and X shall
survive any discharge of this Indenture until such time as the Securities have
been paid in full and there are no Securities outstanding.

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8.02         APPLICATION OF TRUST MONEY.

The Trustee shall hold in
trust all money deposited with it pursuant to Section 8.01
and shall apply such deposited money through the Paying Agent and in accordance
with this Indenture to the payment of amounts due on the Securities.

8.03         REPAYMENT TO COMPANY.

The Trustee and the Paying
Agent shall promptly notify the Company of, and pay to the Company upon the
request of the Company, any excess money held by them at any time. The Trustee
or the Paying Agent, as the case may be, shall provide written notice to the
Company of any money that has been held by it and has, for a period of two (2) years,
remained unclaimed for the payment of the principal of, or any accrued and
unpaid interest on, the Securities. The Trustee and the Paying Agent shall pay
to the Company upon the written request of the Company any money held by them
for the payment of the principal of, premium, if any, or any accrued and unpaid
interest or additional interest on, the notes that remains unclaimed for two (2) years;
provided, however,
that the Trustee or such Paying Agent, before being required to make any such
repayment, may, at the expense of the Company, cause to be published once in a
newspaper of general circulation in the City of New York or cause to be mailed
to each Holder, notice stating that such money remains unclaimed and that,
after a date specified therein, which shall not be less than thirty (30) days
from the date of such publication or mailing, any unclaimed balance of such
money then remaining will be repaid to the Company. After payment to the Company,
Securityholders entitled to the money must look to the Company for payment as
general creditors, subject to applicable law, and all liability of the Trustee
and the Paying Agent with respect to such money and payment shall, subject to
applicable law, cease.

8.04         REINSTATEMENT.

If the Trustee or Paying
Agent is unable to apply any money in accordance with Sections
8.01 and 8.02
by reason of any legal proceeding or by reason of any order or judgment of any
court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the obligations of the Company under this Indenture and the
Securities shall be revived and reinstated as though no deposit had occurred
pursuant to Sections  8.01
and 8.02 until such time as the Trustee or
Paying Agent is permitted to apply all such money in accordance with Sections  8.01 and 8.02; provided, however, that if the Company has made any payment of amounts
due with respect to any Securities because of the reinstatement of its
obligations, then the Company shall be subrogated to the rights of the Holders
of such Securities to receive such payment from the money held by the Trustee
or Paying Agent.

IX.           AMENDMENTS

9.01         WITHOUT CONSENT OF HOLDERS.

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

(i)         to
comply with Sections  5.01 and 10.11;

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(ii)        to
make any changes or modifications to this Indenture necessary in connection
with the registration of the public offer and sale of the Securities under the
Securities Act pursuant to the Registration Rights Agreement or the
qualification of this Indenture under the TIA;

(iii)       to
secure the obligations of the Company in respect of the Securities;

(iv)       to
add to the covenants of the Company described in this Indenture for the benefit
of Securityholders or to surrender any right or power conferred upon the
Company; and

(v)        to
make provisions with respect to adjustments to the Conversion Rate as required
by this Indenture or to increase the Conversion Rate in accordance with this
Indenture.

In addition, the
Company and the Trustee may enter into a supplemental indenture without the
consent of Holders of the Securities to (i) cure any ambiguity, defect,
omission or inconsistency in this Indenture in a manner that does not,
individually or in the aggregate with all other changes, adversely affect the
rights of any Holder in any material respect or (ii) to conform the
Indenture or the Securities to the description thereof contained in the
Offering Memorandum under the caption “Description of notes.”

9.02         WITH CONSENT OF HOLDERS.

The Company, with the
consent of the Trustee, may amend or supplement this Indenture or the
Securities without notice to any Securityholder but with the written consent of
the Holders of at least a majority in aggregate principal amount of the
outstanding Securities. Subject to Sections  6.04 and 6.07, the Holders of a majority in aggregate
principal amount of the outstanding Securities may, by notice to the Trustee,
waive compliance by the Company with any provision of this Indenture or the
Securities without notice to any other Securityholder. Notwithstanding anything
herein to the contrary, without the consent of each Holder of each outstanding
Security affected, an amendment, supplement or waiver, including a waiver
pursuant to Section 6.04, may not:

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

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

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

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

 40
 

 

(e)           modify, in a manner adverse to
Holders, the provisions with respect to the right of Holders pursuant to Article III to require the Company to
repurchase Securities upon the occurrence of a Fundamental Change;

(f)            modify the provisions of Section 2.18 in a manner adverse to
Holders;

(g)           adversely affect the right of Holders
to convert Securities in accordance with Article X;

(h)           reduce the percentage in aggregate
principal amount of outstanding Securities whose Holders must consent to a
modification to or amendment of any provision of this Indenture or the
Securities;

(i)            reduce the percentage in aggregate
principal amount of outstanding Securities whose Holders must consent to a
waiver of compliance with any provision of this Indenture or the Securities or
a waiver of any Default or Event of Default; or

(j)            modify the provisions of this
Indenture with respect to modification and waiver (including waiver of a
Default or an Event of Default), except to increase the percentage required for
modification or waiver or to provide for the consent of each affected Holder.

Promptly after an
amendment, supplement or waiver under Section 9.01
or this Section 9.02 becomes effective,
the Company shall mail, or cause to be mailed, to Securityholders a notice
briefly describing such amendment, supplement or waiver. Any failure of the
Company to mail such notice shall not in any way impair or affect the validity
of such amendment, supplement or waiver.

It shall not be necessary
for the consent of the Holders under this Section 9.02
to approve the particular form of any proposed amendment, supplement or waiver,
but it shall be sufficient if such consent approves the substance thereof.

9.03         COMPLIANCE WITH TRUST INDENTURE ACT.

Every amendment, waiver
or supplement to this Indenture or the Securities shall comply with the TIA as
then in effect.

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

 41
 

 

amendment, supplement or
waiver becomes effective in accordance with its terms and thereafter binds
every Holder.

After an amendment,
supplement or waiver becomes effective with respect to the Securities, it shall
bind every Holder unless such amendment, supplement or waiver makes a change
that requires, pursuant to Section 9.02,
the consent of each Holder affected. In that case, the amendment, supplement or
waiver shall bind each Holder of a Security who has consented to it and,
provided that notice of such amendment, supplement or waiver is reflected on a
Security that evidences the same debt as the consenting Holder’s Security,
every subsequent Holder of a Security or portion of a Security that evidences
the same debt as the consenting Holder’s Security.

Nothing in this Section 9.04 shall impair the Company’s rights pursuant
Section 9.01 to amend this
Indenture or the Securities without the consent of any Securityholder in the
manner set forth in, and permitted by, such Section 9.01.

9.05         NOTATION ON OR EXCHANGE OF SECURITIES.

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

9.06         TRUSTEE PROTECTED.

The Trustee shall sign
any amendment, supplemental indenture or waiver authorized pursuant to this Article IX; provided, however, that the Trustee need not sign any amendment,
supplement or waiver authorized pursuant to this Article IX
that adversely affects the Trustee’s rights, duties, liabilities or immunities.
The Trustee shall be entitled to receive and conclusively rely upon an Opinion
of Counsel as to legal matters and an Officer’s Certificate as to factual
matters that any supplemental indenture, amendment or waiver is permitted or
authorized pursuant to this Indenture.

9.07         EFFECT OF SUPPLEMENTAL INDENTURES.

Upon the due execution
and delivery of any supplemental indenture in accordance with this Article IX, this Indenture shall be modified in
accordance therewith, and such supplemental indenture shall form a part of this
Indenture for all purposes, and, except as set forth in Sections
9.02 and 9.04, every Holder of Securities shall be bound thereby.

 42
 

 

X.            CONVERSION

10.01       CONVERSION PRIVILEGE; RESTRICTIVE LEGENDS.

(A)          Subject to the
provisions of Article III,
the Securities shall be convertible into cash and, if applicable, shares of
Common Stock in accordance with this Article X
and as set forth below if any of the following conditions are satisfied:

(i)      Conversion Based on
Closing Sale Price of Common Stock. Prior to the Maturity Date or
earlier Repurchase Upon Fundamental Change, the Securities may be surrendered
for conversion into cash and, if applicable, shares of Common Stock during any
calendar quarter after the calendar quarter ending September 30, 2006, if
the Closing Sale Price for each of twenty (20) or more Trading Days in a period
of thirty (30) consecutive Trading Days ending on the last Trading Day of the
immediately preceding calendar quarter exceeds one hundred and thirty percent
(130%) of the Conversion Price in effect on the last Trading Day of the
immediately preceding calendar quarter. Solely for purposes of determining
whether the Securities shall have become convertible pursuant to this Section 10.01(A)(i), the Company
shall, in its good faith determination, make appropriate adjustments to the
Closing Sale Prices and/or such Conversion Price used to determine whether the
Securities shall have become convertible pursuant to this Section 10.01(A)(i) to account
for any adjustments to the Conversion Rate
which shall have become effective, or any event requiring an adjustment to the
Conversion Rate where the Ex Date of such event occurs, during the period of
thirty (30) consecutive Trading Days ending on the last Trading Day of
the immediately preceding calendar quarter.

(ii)     Conversion Upon
Satisfaction of Trading Price Condition. Prior to the Maturity Date
or earlier Repurchase Upon Fundamental Change, the Securities may be
surrendered for conversion into cash and, if applicable, shares of Common Stock
during the five (5) consecutive Business Days immediately after any five (5) consecutive
Trading Day period (such five (5) consecutive Trading Day period, the “Note Measurement Period”) in which the
average Trading Price per $1,000 principal amount of the Securities was equal
to or less than ninety seven percent (97%) of the average Conversion Value
during the Note Measurement Period (such condition, the “Trading Price Condition”). The Bid
Solicitation Agent shall not have any obligation to determine the Trading Price
unless the Company has requested such determination, and the Company shall have
no obligation to make such request unless a Holder of at least five million
dollars ($5,000,000) in aggregate principal amount of the Securities provides
the Company with reasonable evidence that the Trading Price per $1,000
principal amount of the Securities would be equal to or less than ninety seven
percent (97%) of the product of the Closing Sale Price and the Conversion Rate.
Upon receipt of such evidence, the Company shall instruct the Bid Solicitation
Agent to determine the Trading Price per $1,000 principal amount of the
Securities for each of the five (5) successive Trading Days immediately
after the Company receives such evidence and on each Trading Day thereafter
until the first Trading Day on which the Trading Price Condition is no longer
satisfied. For purposes of this paragraph, the “Conversion Value” per $1,000 principal amount of Securities,
on a given Trading

 43
 

 

Day, means the
product of the Closing Sale Price on such Trading Day and the Conversion Rate
in effect on such Trading Day.

(iii)    Conversion Upon Certain
Distributions. If the Company takes any action, or becomes aware of
any event, that would require an adjustment to the Conversion Rate pursuant to Sections 10.05(b), 10.05(c), 10.05(d) or
10.05(e), the Securities may,
prior to the Maturity Date or earlier Repurchase Upon Fundamental Change, be
surrendered for conversion into cash and, if applicable, shares of Common Stock
beginning on the date the Company mails the notice to the Holders as provided
in Section 10.10 (or, if
earlier, the date the Company is required to mail such notice) and at any time
thereafter until the close of business on the Business Day immediately
preceding the Ex Date (as defined in Section 10.05(g))
of the applicable transaction or until the Company announces that such
transaction will not take place.

(iv)    Conversion Upon Occurrence
of Certain Corporate Transactions. If either:

(a)           a Fundamental Change or a Make-Whole
Fundamental Change occurs; or

(b)           the Company is a party to a
consolidation, merger or binding share exchange pursuant to which the Common
Stock would be converted into or exchanged for, or would constitute solely the
right to receive, cash, securities or other property,

then, in each case, the Securities may, prior to the
Maturity Date or earlier Repurchase Upon Fundamental Change, be surrendered for
conversion into cash and, if applicable, shares of Common Stock at any time during the period that begins on, and
includes, the date that is forty five (45) calendar days prior to the date
originally announced by the Company as the anticipated effective date of such
transaction (which anticipated effective date the Company shall
disclose, in good faith, in the written notice and public announcement referred
to in Section 10.01(C)) and ends on, and includes, the date that is
thirty (30) calendar days after the actual effective date of such transaction; provided, however, that
if such transaction is a Make-Whole Fundamental Change, then the
Securities may also be surrendered for conversion into cash and, if applicable,
shares of Common Stock at any time during
the Make-Whole Conversion Period applicable to such Make-Whole Fundamental
Change; provided, further,
that if such transaction is a Fundamental Change, then the Securities
may also be surrendered for conversion into cash and, if applicable, shares of
Common Stock at any time until, and including, the Fundamental Change Repurchase
Date applicable to such Fundamental
Change.

(v)     Conversion on or after June 15,
2011. The Securities may be surrendered for conversion into cash
and, if applicable, shares of Common Stock at any time from, and including, June 15,
2011 to, and including, the Business Day immediately preceding July 15,
2011.

 44
 

 

Notwithstanding anything
herein to the contrary, no Security may be converted after the close of
business on the Business Day immediately preceding the Maturity Date.

(B)           The initial
Conversion Rate shall be 29.9679 shares of Common Stock per $1,000 principal
amount of Securities. The Conversion Rate shall be subject to adjustment in
accordance with Sections 10.05
through 10.14.

(C)           Whenever any event
described in Section 10.01
shall occur which shall cause the Securities to become convertible as provided
in this Article X, the
Company shall promptly deliver, in accordance with Section 11.02, written notice of the convertibility of
the Securities to the Trustee and each Holder and shall, as soon practicable,
but in no event later than the open of business on the third (3rd) Business Day
following the date the Securities shall become convertible as provided in this Article X as a result of such event
(or, in the case of a Fundamental Change, or a consolidation, merger or binding
share exchange to which the Company is a party and pursuant to which the Common
Stock would be converted into or exchanged for, or would constitute solely the
right to receive, cash, securities or other property, no later than the forty fifth (45th) calendar day prior
to the date originally announced by the Company as the anticipated effective
date of such transaction), publicly announce, through a reputable
national newswire service, that the Securities have become convertible. Such
written notice and public announcement shall include:

(i)      a description of such event;

(ii)     a description of the periods during which
the Securities shall be convertible as provided in this Article X as a result of such event;

(iii)    the anticipated effective date and the Ex
Date of such event, if applicable; and

(iv)    the procedures Holders must follow to
convert their notes in accordance with this Article X,
including the name and address of the Conversion Agent.

(D)          A Holder may convert
a portion of the principal amount of a Security if such portion is $1,000
principal amount or an integral multiple of $1,000 principal amount. Provisions
of this Indenture that apply to conversion of all of a Security also apply to
conversion of a portion of such Security.

10.02       CONVERSION PROCEDURE AND PAYMENT UPON CONVERSION.

(A)          To convert a
Security, a Holder must satisfy the requirements of paragraph 8 of the Securities, and the Securities must be
convertible pursuant to Section 10.01.
Upon conversion of a Holder’s Security, the Company shall deliver, through the
Conversion Agent, the following to such Holder:

(i)      an amount (the “Principal Return”) in cash equal to the sum of the Daily
Principal Returns for each Trading Day in the Cash Settlement Averaging Period
for such conversion; and

 45
 

 

(ii)     if
the sum of the Daily Net Shares for each Trading Day in the Cash Settlement
Averaging Period for such conversion is greater than or equal to one (1), a
certificate for a number of shares of Common Stock (the “Net Shares”) equal to such sum; provided, however, that the
Company shall not issue fractional shares of Common Stock and shall instead
deliver cash (in addition to any other consideration payable upon such
conversion) in an amount equal to the value of such fraction computed on the
basis of the Volume-Weighted
Average Price per share of Common Stock on the last Trading Day in the
applicable Cash Settlement Averaging Period.

The Company shall
deliver such Principal Return and, if applicable, such Net Shares as soon as practicable
following the Business Day (the “Conversion Date”)
on which such Holder satisfies all the requirements for such conversion
specified in paragraph 8 of the Securities, but
in no event more than three (3) Business Days after the last Trading Day in
the Cash Settlement Averaging Period applicable to such conversion; provided, however, that
any Make-Whole Consideration payable pursuant to Section 10.14
shall be delivered by the Company within the time period specified in Section 10.14.

(B)           “Cash Settlement
Averaging Period” shall mean, with respect to a Security that is
tendered for conversion in accordance with this Article X, the thirty (30) consecutive
Trading-Day period that begins on, and includes, the third (3rd) Trading Day
after the Conversion Date for such Security; provided,
however, that if such Conversion Date is
on or after the thirty third (33rd) scheduled Trading Day prior to the Maturity
Date, then the Cash Settlement Averaging Period with respect to such conversion
shall be deemed to be the thirty (30) consecutive Trading-Day period that
begins on and includes the thirtieth (30th) scheduled Trading Day prior to the
Maturity Date.

“Daily Principal Return” shall mean,
with respect to a Trading Day, the lesser of thirty three dollars and thirty
three cents ($33.33) and
the Daily Conversion Value for such Trading Day.

“Daily Conversion Value” shall mean,
with respect to a Trading Day, one-thirtieth (1/30th) of the product of (i) the
Conversion Rate in effect on such Trading Day and (ii) the Volume-Weighted
Average Price per share of Common Stock on such Trading Day.

“Daily Net Shares” shall mean, with
respect to a Trading Day, an amount equal to the following: (i) if the Daily
Conversion Value for such Trading Day is equal to or lesser than thirty three
dollars and thirty three cents ($33.33), then the Daily Net Shares with respect
to such Trading Day shall mean an amount equal to zero (0); and (ii) if the Daily Conversion Value for
such Trading Day exceeds thirty three dollars and thirty three cents ($33.33),
then the Daily Net Shares with respect to such Trading Day shall mean a
fraction (a) whose numerator is the excess of such Daily Conversion Value
over thirty three dollars and thirty three cents ($33.33) and (b) whose
denominator is the Volume-Weighted
Average Price per share of Common Stock on such Trading Day.

“Volume-Weighted Average Price” per
share of Common Stock on any Trading Day means such price as displayed on
Bloomberg (or any successor service) page MEDI <equity> VAP in
respect of the period from 9:30 a.m. to 4:00 p.m., New York City
time, on such

 46
 

 

Trading Day, or, if such
price is not available, the market value per share of Common Stock on such
Trading Day as determined by a nationally recognized investment banking firm
retained for this purpose by the Company.

(C)           With
respect to a conversion of a Security pursuant hereto, at and after the close
of business on the last Trading Day (the “Relevant
Date”) of the Cash Settlement Averaging Period applicable to such
conversion, the person in whose name any certificate representing any Net
Shares issuable upon such conversion is registered shall be treated as a
stockholder of record of the Company; provided, however, that if any such Net Shares constitute Make-Whole
Consideration, then the Relevant Date with respect to such Net Shares that
constitute Make-Whole Consideration shall instead be deemed to be the later of (1) the
last Trading Day of the Cash Settlement Averaging Period applicable to such
conversion and (2) the Effective Date of the applicable Make-Whole
Fundamental Change. On and after the Conversion Date with respect to a
conversion of a Security pursuant hereto, all rights of the Holder of such
Security shall terminate, other than the right to receive the consideration deliverable
upon conversion of such Security as provided herein. A Holder of a Security is
not entitled, as such, to any rights of a holder of Common Stock until, if such
Holder converts such Security and is entitled pursuant hereto to receive Net
Shares in respect of such conversion, the close of business on the Relevant
Date or respective Relevant Dates, as the case may be, with respect to such
conversion.

(D)          Except
as provided in the Securities or in this Article X,
no payment or adjustment will be made for accrued interest or additional
interest on a converted Security or for dividends on any Common Stock issued on
or prior to conversion, and accrued interest and additional interest, if any,
will be deemed to be paid by the consideration paid to the Holder upon
conversion. Such accrued interest and additional interest, if any, shall be
deemed to be paid in full rather than cancelled, extinguished or forfeited. If
any Holder surrenders a Security for conversion after the close of business on
the record date for the payment of an installment of interest and prior to the
related interest payment date, then, notwithstanding such conversion, the
interest payable with respect to such Security on such interest payment date
shall be paid on such interest payment date to the Holder of record of such
Security at the close of business on such record date; provided,
however, that such Security, when surrendered for conversion, must
be accompanied by payment in cash to the Conversion Agent on behalf of the
Company of an amount equal to the interest payable on such interest payment
date on the portion so converted; provided further, however,
that such payment to the Conversion Agent described in the immediately
preceding proviso in respect of a Security surrendered for conversion shall not
be required with respect to a Security that either (i) is surrendered for
conversion after the record date immediately preceding the Maturity Date or (ii) is
surrendered for conversion after a record date for the payment of an
installment of interest and on or before the related interest payment date,
where, pursuant to Section 3.02,
the Company has specified, with respect to a Fundamental Change, a Fundamental
Change Repurchase Date that is after such record date and on or before such interest
payment date; provided further, that, if the
Company shall have, prior to the Conversion Date with respect to a Security,
defaulted in a payment of interest on such Security, then in no event shall the
Holder of such Security who surrenders such Security for conversion be required
to pay such defaulted interest or the interest that shall have accrued on such
defaulted interest pursuant to Section 2.12
or otherwise (it being understood that nothing in this Section 10.02 (D) shall
affect the Company’s obligations under Section 2.12).

 47
 

 

(E)           If
a Holder converts more than one Security at the same time, the number of full
shares of Common Stock issuable upon such conversion, if any, shall be based on
the total principal amount of all Securities converted.

(F)           Upon
surrender of a Security that is converted in part, the Trustee shall
authenticate for the Holder a new Security equal in principal amount to the
unconverted portion of the Security surrendered.

(G)           If
the last day on which a Security may be converted is a Legal Holiday in a place
where a Conversion Agent is located, the Security may be surrendered to that
Conversion Agent on the next succeeding day that is not a Legal Holiday.

10.03       TAXES ON CONVERSION.

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

10.04       COMPANY TO PROVIDE STOCK.

The Company shall at all
times reserve out of its authorized but unissued Common Stock or Common Stock
held in its treasury enough shares of Common Stock to permit the conversion, in
accordance herewith, of all of the Securities. The shares of Common Stock, if
any, due upon conversion of a Global Security shall be delivered by the Company
in accordance with the Depositary’s customary practices.

All shares of Common
Stock which may be issued upon conversion of the Securities shall be validly
issued, fully paid and non-assessable and shall be free of preemptive or
similar rights and free of any lien or adverse claim.

The Company shall comply
with all securities laws regulating the offer and delivery of shares of Common
Stock upon conversion of Securities and shall list such shares on each national
securities exchange or automated quotation system on which the Common Stock is
listed.

10.05       ADJUSTMENT OF CONVERSION RATE.

The Conversion Rate shall be subject to adjustment
from time to time as follows:

(a)           In case the Company shall (1) pay
a dividend in shares of Common Stock to all holders of Common Stock, (2) make
a distribution in shares of Common Stock to all holders of Common Stock, (3) subdivide
the outstanding shares of Common Stock into a greater number of shares of
Common Stock or

 48
 

 

(4) combine
the outstanding shares of Common Stock into a smaller number of shares of
Common Stock, the Conversion Rate shall be adjusted by multiplying the
Conversion Rate in effect immediately prior to close of business on the Ex Date
or effective date, as applicable, of such dividend, distribution, subdivision
or combination, by the number of shares of Common Stock that a person who owns
only one share of Common Stock immediately before such Ex Date or effective
date, as applicable, of such dividend, distribution, subdivision or combination
and who is entitled to participate in such dividend, distribution, subdivision
or combination would own immediately after giving effect to such dividend,
distribution, subdivision or combination (without giving effect to any
arrangement pursuant to such dividend, distribution, subdivision or combination
not to issue fractional shares of Common Stock). Any adjustment made pursuant
to this Section 10.05(a) shall
become effective immediately after such Ex Date, in the case of a dividend or
distribution, and shall become effective immediately after such effective date,
in the case of a subdivision or combination.

(b)           In case the Company shall issue
rights or warrants to all or substantially all holders of Common Stock,
entitling them, for a period expiring not more than sixty (60) days immediately
following the record date for the determination of holders of Common Stock
entitled to receive such rights or warrants, to subscribe for or purchase
shares of Common Stock, at a price per share that is less than the current
market price (as determined pursuant to Section 10.05(g))
per share of Common Stock on the record date for the determination of holders
of Common Stock entitled to receive such rights or warrants, the Conversion
Rate shall be increased by multiplying the Conversion Rate in effect
immediately prior to the Ex Date corresponding to such record date by a
fraction of which (A) the numerator shall be the sum of (I) the
number of shares of Common Stock outstanding immediately prior to the open of
business on such Ex Date and (II) the
aggregate number of shares (the “Underlying
Shares”) of Common Stock underlying all such issued rights or
warrants (whether by exercise, conversion, exchange or otherwise), and (B) the
denominator shall be the sum of (I) number of shares of Common Stock
outstanding immediately prior to the open of business on such Ex Date and (II) the
number of shares of Common Stock which the aggregate exercise, conversion,
exchange or other price at which the Underlying Shares may be subscribed for or
purchased pursuant to such rights or warrants would purchase at such current
market price per share of Common Stock; provided,
however, no adjustment shall be
made pursuant to this Section 10.05(b) solely by reason of a distribution of rights pursuant to a
stockholders’ rights plan, provided the Company has complied with the
provisions of Section 10.13
with respect to such stockholders’ rights plan and distribution. Such increase
shall become effective immediately prior to
the open of business on such Ex Date. In no event shall the Conversion
Rate be decreased pursuant to this Section 10.05(b).

(c)           Except as set forth in the
immediately following paragraph, in case the Company shall dividend or
distribute to all or substantially all holders of Common Stock shares of
Capital Stock of the Company or any existing or future Subsidiary (other than
Common Stock), evidences of Indebtedness or other assets

 49
 

 

(other than
dividends or distributions requiring an adjustment to the Conversion Rate in accordance
with Sections 10.05(d) or 10.05(e)),
or shall dividend or distribute to all or substantially all holders of Common
Stock rights or warrants to subscribe for or purchase securities (other than
dividends or distributions of rights or warrants requiring an adjustment to the
Conversion Rate in accordance with Section 10.05(b)),
then in each such case the Conversion Rate shall be increased by multiplying the Conversion Rate in effect immediately
prior to the open of business on the Ex Date corresponding to the record date
for the determination of stockholders
entitled to such dividend or distribution by a fraction of which (A) the
numerator shall be the current market price per share of Common Stock (as
determined pursuant to Section 10.05(g)) on such record date and (B) the
denominator shall be an amount equal to (I) such current market price per
share of Common Stock less (II) the fair market value (as determined in
good faith by the Board of Directors, whose determination shall be conclusive
and described in a Board Resolution), on such Ex Date, of the portion of the
shares of Capital Stock, evidences of Indebtedness, assets, rights and warrants
to be dividended or distributed applicable to one share of Common Stock, such
increase to become effective immediately prior to the open of business on such
Ex Date; provided however,
that if the denominator of such fraction shall be equal to or less than zero,
then the Conversion Rate shall be instead adjusted so that the Conversion Price
is equal to the par value per share of Common Stock.

Notwithstanding
anything to the contrary in this Section 10.05(c),
if, in a distribution requiring an adjustment to the Conversion Rate pursuant
to the immediately preceding paragraph, the property distributed by the Company
to all Holders of Common Stock consists solely of Capital Stock, or similar
equity interests in, a Subsidiary or other business unit of the Company, which
Capital Stock or interests are, or will be upon completion of such
distribution, listed on a national securities exchange or quoted on an
automated quotation system and closing sale prices for such Capital Stock or
interests are readily available (a “Spin-Off”),
then in lieu of adjusting the Conversion Rate in accordance with the
immediately preceding paragraph, the Conversion Rate shall be increased
(subject to the other terms of this Indenture) by multiplying the Conversion
Rate in effect immediately prior to the opening of business on the thirteenth
(13th) Trading Day following the record date for such distribution by a
fraction (I) whose numerator is the sum of (A) the average of the
Closing Sale Prices per share of Common Stock for the ten (10) consecutive
Trading Days commencing on, and including, the third (3rd) Trading Day after
the record date for such distribution and (B) the product of (i) the
average of the Closing Sale Prices per share or unit, as applicable, of such
Capital Stock or interests (determined as if such shares or units were shares
of Common Stock for purposes of the definition of “Closing Sale Price”) for the
for the ten (10) consecutive Trading Days commencing on, and including,
the third (3rd) Trading Day after the record date for such distribution and (ii) number
of shares or units, as applicable, of such Capital Stock or interests
distributed per share of Common Stock; and (II) whose denominator is the
average of the Closing Sale Prices per share of Common Stock for the ten (10) consecutive
Trading Days commencing on, and including, the third (3rd) Trading 

 50
 

 

Day after the record date for such
distribution. The average Closing Sale Prices referred to in the immediately
preceding sentence shall be subject to appropriate adjustments, in the Company’s
good faith determination, to account for
other distributions, stock splits and combinations, stock dividends,
reclassifications and similar events. Each
adjustment to the Conversion Rate made pursuant to this paragraph shall
become effective immediately after the open of business on the thirteenth
(13th) Trading Day following the record date for such distribution.

Rights or warrants distributed by the Company
to all holders of Common Stock entitling the holders thereof to subscribe for
or purchase shares of the Company’s Capital Stock (either initially or under
certain circumstances), which rights, options or warrants, until the occurrence
of a specified event or events (“Trigger
Event”): (i) are deemed to be transferred with such shares of
Common Stock; (ii) are not exercisable; and (iii) are also issued in
respect of future issuances of Common Stock, shall be deemed not to have been
distributed for purposes of this Section 10.05
(and no adjustment to the Conversion Rate under this Section 10.05 will be required) until
the occurrence of the earliest Trigger Event, whereupon such rights, options
and warrants shall be deemed to have been distributed and an appropriate
adjustment (if any is required) to the Conversion Rate shall be made under this
Section 10.05(c). In no event
shall the Conversion Rate be decreased pursuant to this Section 10.05(c).

(d)           In case the Company shall, by
dividend or otherwise, at any time make a distribution of cash (excluding any
cash that is distributed as part of a distribution requiring a Conversion Rate
adjustment pursuant to Section 10.05(e))
to all or substantially all holders of Common Stock, the Conversion Rate shall
be increased by multiplying the Conversion Rate in effect immediately prior to the open of business on the
Ex Date for such distribution by a fraction (A) whose numerator
shall be the current market price per share of Common Stock (as determined
pursuant to Section 10.05(g))
on such Ex Date and (B) whose denominator shall be an amount equal to (I) such
current market price per share of Common Stock less (II) the amount of the distribution per share of
Common Stock; provided however,
that if the denominator of such fraction shall be equal to or less than zero,
then the Conversion Rate shall be instead adjusted so that the Conversion Price
is equal to the par value per share of Common Stock. An adjustment to the
Conversion Rate pursuant to this Section 10.05(d) shall
become effective immediately prior to the
open of business on such Ex Date. In no event shall the Conversion Rate
be decreased pursuant to this Section 10.05(d).

(e)           In case the Company or any Subsidiary
shall distribute cash or other consideration in respect of a tender offer or
exchange offer made by the Company or any Subsidiary for all or any portion of
the Common Stock where the sum of the aggregate amount of such cash distributed
and the aggregate fair market value (as determined in good faith by the
Company), as of the Expiration Date (as defined below), of such other
consideration distributed (such sum, the “Aggregate
Amount”) expressed as an amount per share of Common Stock validly tendered
or exchanged, and not withdrawn, pursuant to such tender offer

 51
 

 

or exchange
offer as of the Expiration Time (as defined below) (such tendered or exchanged
shares of Common Stock, the “Purchased Shares”)
exceeds the Closing Sale Price per share of Common Stock on the first Trading
Day after the last date (such last date, the “Expiration
Date”) on which tenders or exchanges could have been made pursuant
to such tender offer or exchange offer (as the same may be amended through the
Expiration Date), then the Conversion Rate shall be increased by multiplying
the Conversion Rate in effect immediately prior to the close of business on
first Trading Day after the Expiration Date by a fraction (A) whose
numerator is equal to the sum of (I) the Aggregate Amount and (II) the
product of (a) such Closing Sale Price per share of Common Stock and (b) an
amount equal to (i) the number of shares of Common Stock outstanding as of
the last time (the “Expiration Time”)
at which tenders or exchanges could have been made pursuant to such tender
offer or exchange offer (including all Purchased Shares) less (ii) the
Purchased Shares and (B) whose denominator is equal to the product of (I) the
number of shares of Common Stock outstanding as of the Expiration Time
(including all Purchased Shares) and (II) such Closing Sale Price per
share of Common Stock.

An increase, if
any, to the Conversion Rate pursuant to this Section 10.05(e) shall
become effective immediately prior to the opening of business on the Business
Day following the first Trading Day after the Expiration Date. In the event
that the Company or a Subsidiary is obligated to purchase shares of Common
Stock pursuant to any such tender offer or exchange offer, but the Company or
such Subsidiary is permanently prevented by applicable law from effecting any
such purchases, or all such purchases are rescinded, then the Conversion Rate
shall again be adjusted to be the Conversion Rate which would then be in effect
if such tender offer or exchange offer had not been made. If the application of
this Section 10.05(e) to any
tender offer or exchange offer would result in a decrease in the Conversion
Rate, no adjustment shall be made for such tender offer or exchange offer under
this Section 10.05(e).

(f)            In addition to the foregoing
adjustments in subsections (a), (b), (c),
(d) and (e) above, the Company, from time to
time and to the extent permitted by law and the continued listing requirements
of the Nasdaq National Market, may increase the Conversion Rate by any amount
for a period of at least twenty (20) days or such longer period as may be
permitted or required by law, if the Board of Directors has made a
determination, which determination shall be conclusive, that such increase
would be in the best interests of the Company. Such Conversion Rate increase
shall be irrevocable during such period. The Company shall give notice to the
Trustee and cause notice of such increase to be mailed to each Holder of
Securities at such Holder’s address as the same appears on the registry books
of the Registrar, at least fifteen (15) days prior to the date on which such
increase commences.

(g)           For the purpose of any computation
under subsections (a), (b), (c) or
(d) above of this Section 10.05, the current market
price per share of Common Stock on any date shall be deemed to be the average
of the Closing Sale Prices for

 52
 

 

the ten (10) consecutive
Trading Days ending on, but excluding, the earlier of such date and the Ex Date
with respect to the issuance or distribution requiring such computation; provided, however,
that such current market price per share of Common Stock shall be appropriately adjusted by the Company,
in its good faith determination, to
account for any adjustment, pursuant hereto, to the Conversion Rate that shall
become effective, or any event requiring, pursuant hereto, an adjustment to the
Conversion Rate where the Ex Date of such event occurs, at any time during the
period that begins on, and includes, the first day of such ten (10) consecutive
Trading Days and ends on, and includes, the date when the adjustment to the
Conversion Rate on account of the event requiring the computation of such
current market price becomes effective.

The term “Ex Date,” (i) when used with respect
to any issuance or distribution, means the first date on which the Common Stock
trades the regular way on the relevant exchange or in the relevant market from
which the Closing Sale Price was obtained without the right to receive such
issuance or distribution, (ii) when used with respect to any subdivision
or combination of shares of Common Stock, means the first date on which the
Common Stock trades the regular way on such exchange or in such market after
the time at which such subdivision or combination becomes effective, and (iii) when
used with respect to any tender offer or exchange offer means the first date on
which the Common Stock trades the regular way on such exchange or in such
market after the expiration time of such tender offer or exchange offer (as it
may be amended or extended). For purposes of determining the Ex Date with
respect to an issuance or distribution under this Indenture, the Company may
conclusively assume (and such assumption shall be binding upon the Holders)
that purchases and sales of the relevant security with respect to which such
issuance or distribution is being made will settle based on the customary
settlement cycle for purchases or sales of such security.

Unless the
context requires otherwise, the term “record
date” means, 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).

10.06       NO ADJUSTMENT.

Notwithstanding anything herein or in the Securities
to the contrary, in no event shall the Conversion Rate be adjusted pursuant to
this Indenture or the Securities to the extent such adjustment shall reduce the
Conversion Price to an amount that is less than the par value per share of
Common Stock.

 53

 

No adjustment in the Conversion Rate pursuant to Section 10.05 shall be required until cumulative
adjustments amount to one percent (1%) or more of the Conversion Rate as last
adjusted (or, if never adjusted, the initial Conversion Rate); provided, however, that any adjustments to the Conversion
Rate which by reason of this Section 10.06
are not required to be made shall be carried forward and taken into account in
any subsequent adjustment to the Conversion Rate; provided
further, that if a Fundamental Change or Make-Whole Fundamental
Change occurs, or if the Securities shall become convertible pursuant to Section 10.01(A)(iii) or Section 10.01(A)(iv),
then, in each case, any adjustments to the Conversion Rate that have been, and
at such time remain, deferred pursuant to this Section 10.06
shall be given effect, and such adjustments, if any, shall no longer be carried
forward and taken into account in any subsequent adjustment to the Conversion
Rate. All calculations under this Article X
shall be made to the nearest cent or to the nearest one-millionth of a share,
as the case may be.

Notwithstanding anything herein or in the Securities
to the contrary, if any rights, options or warrants issued by the Company and
requiring an adjustment to the Conversion Rate in accordance with Section 10.05 are only exercisable upon the occurrence
of certain triggering events, then the Conversion Rate will not be adjusted as
provided in Section 10.05 until the
earliest of such triggering event occurs. Upon the expiration, termination or
redemption of any such rights, options or warrants without the exercise of such
rights, options or warrants, the Conversion Rate then in effect shall be
adjusted immediately to the Conversion Rate which would have been in effect at
the time of such expiration, termination or redemption had such rights, options
or warrants, to the extent outstanding immediately prior to such expiration,
termination or redemption, never been issued.

If any dividend or distribution is declared and the
Conversion Rate is adjusted pursuant to Section 10.05
on account of such dividend or distribution, but such dividend or distribution
is thereafter not paid or made, the Conversion Rate shall again be adjusted to
the Conversion Rate which would then be in effect had such dividend or
distribution not been declared.

No adjustment to the Conversion Rate need be made
pursuant to Section 10.05 for a
transaction if each Holder is to participate in the transaction, at
substantially the same time that holders of Common Stock participate in such
transaction, without conversion as if such Holder held a number of shares of
Common Stock equal to a fraction whose numerator is the product of the
Conversion Rate in effect at the Ex Date or effective date, as applicable, of
the transaction (without giving effect to any adjustment pursuant to Section 10.05 on account of such transaction) and the
aggregate principal amount of Securities held by such Holder and whose
denominator is one thousand (1,000).

Notwithstanding anything herein to the contrary, in no
event shall the Conversion Rate be increased pursuant to Section 10.05(b),
Section 10.05(c), Section 10.05(d) or Section 10.05(e) to
the extent, but only to the extent, such increase shall cause the Conversion
Rate applicable to such Security to exceed 36.7107 shares per $1,000 principal
amount (the “BCF Adjustment Cap”); provided, however, that
the BCF Adjustment Cap shall be adjusted in the same manner in which the
Conversion Rate is to be adjusted pursuant to this Article X
for stock splits and combinations, stock dividends, reclassifications and
similar events.

 54
 

 

10.07       OTHER ADJUSTMENTS.

In the event that, as a result of an adjustment made
pursuant to Section 10.05 hereof, the
Holder of any Security thereafter surrendered for conversion shall become
entitled to receive any shares of Capital Stock other than shares of Common
Stock, thereafter the Conversion Rate of such other shares so receivable upon
conversion of any Security shall be subject to adjustment from time to time in
a manner and on terms as nearly equivalent as practicable to the provisions
with respect to Common Stock contained in this Article X.

10.08       ADJUSTMENTS FOR TAX PURPOSES.

Except as prohibited by law the Company may (but is
not obligated to) make such increases in the Conversion Rate, in addition to
those required by Section 10.05
hereof, as it determines to be advisable in order that any stock dividend,
subdivision of shares, distribution of rights to purchase stock or securities
or distribution of securities convertible into or exchangeable for stock made
by the Company or to its stockholders will not be taxable to the recipients
thereof or in order to diminish any such taxation.

10.09       NOTICE OF ADJUSTMENT.

Whenever the Conversion Rate is adjusted, the Company
shall promptly mail to Holders at the addresses appearing on the Registrar’s
books a notice of the adjustment and file with the Trustee an Officer’s
Certificate briefly stating the facts requiring the adjustment and the manner
of computing it. The certificate shall be conclusive evidence of the
correctness of such adjustment.

10.10       NOTICE OF CERTAIN TRANSACTIONS.

In the event that:

(1)           the
Company takes any action, or becomes aware of any event, which would require an
adjustment in the Conversion Rate,

(2)           the Company takes any action that
would require a supplemental indenture pursuant to Section 10.11, or

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

the Company shall mail to Holders at the addresses
appearing on the Registrar’s books and the Trustee a written notice stating the
proposed record, effective or expiration date, as the case may be, of any
transaction referred to in clause  (1), (2) or (3) of this Section 10.10.
The Company shall mail such notice at least twenty (20) calendar days (or, in
the case of any event that would require an adjustment in the Conversion Rate
pursuant to Sections 10.05(b), 10.05(c), 10.05(d) or
10.05(e), forty five (45) calendar
days) before such date; however, 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 10.10.

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10.11       EFFECT OF RECLASSIFICATIONS, CONSOLIDATIONS, MERGERS,
BINDING SHARE EXCHANGES OR SALES ON CONVERSION PRIVILEGE.

If any of the following shall occur, namely: (i) any
reclassification or change in the Common Stock issuable upon conversion of
Securities (other than a change only 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 of Common Stock), (ii) any consolidation, merger or binding
share exchange to which the Company is a party other than a merger in which the
Company is the continuing Person and which does not result in any
reclassification of, or change (other than a change in name, or 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, the Common Stock or (iii) any
sale, transfer, lease, conveyance or other disposition of all or substantially
all of the property or assets of the Company, in each case pursuant to which
the Common Stock would be converted into or exchanged for, or would constitute
solely the right to receive, cash, securities or other property, then the
Company or such successor or purchasing Person, as the case may be, shall
execute and deliver to the Trustee a supplemental indenture in form reasonably
satisfactory to the Trustee providing that, at and after the effective time of
such reclassification, change, consolidation, merger, binding share exchange,
sale, transfer, lease, conveyance or disposition, the Holder of each Security
then outstanding shall have the right to convert such Security (if otherwise
convertible pursuant to this Article X)
into the kind and amount of cash, securities or other property (collectively, “Reference Property”) receivable upon such reclassification,
change, consolidation, merger, binding share exchange, sale, transfer, lease,
conveyance or disposition by a holder of a number of shares of Common Stock
equal to a fraction whose denominator is one thousand (1,000) and whose
numerator is the product of the principal amount of such Security and the
Conversion Rate in effect immediately prior to such reclassification, change,
consolidation, merger, binding share exchange, sale, transfer, lease,
conveyance or disposition (assuming, if holders of Common Stock shall have the
opportunity to elect the form of consideration to receive pursuant to such
reclassification, change, consolidation, merger, binding share exchange, sale,
transfer, lease, conveyance or disposition, that the Collective Election shall
have been made with respect to such election); provided,
however, that at and after the effective
time of such reclassification, change, consolidation, merger, binding share
exchange, sale, transfer, lease, conveyance or disposition, the Principal
Return payable hereunder upon conversion of such Security shall continue to be
payable in cash and the Daily Conversion Value and Daily Net Shares shall be
calculated based on the value of the Reference Property instead of the
Volume-Weighted Average Price per share of Common Stock; provided  further, that if any portion of such Reference Property
consists of common stock listed on a national securities exchange or quoted
on an automated quotation system, then the “value” of such portion of such
Reference Property shall be determined on the basis of the Volume Weighted
Average Price of such common stock (determined as if such common stock were
Common Stock for purposes of the definition of “Volume Weighted Average Price”
and as if the issuer of such common stock were the Company for purposes of the
definition of “Trading Day”).

If holders of Common Stock shall have the opportunity
to elect the form of consideration to receive pursuant to such
reclassification, change, consolidation, merger, binding share exchange, sale,
transfer, lease, conveyance or disposition, then the Company shall make
adequate provision to give Holders, treated as a single class, a reasonable
opportunity to elect (the “Collective Election”)
the form of such consideration for purposes of determining the

 56
 

 

composition of the Reference Property referred to in
the immediately preceding sentence, and once such election is made, such
election shall apply to all Holders after the effective time of such
reclassification, change, consolidation, merger, binding share exchange, sale,
transfer, lease, conveyance or disposition. Such Collective Election shall be
determined based on the weighted average of the elections made by Holders of
the Securities who participate in such determination, shall be subject to any
limitations to which all of the holders of Common Stock are subject, such as
pro-rata reductions applicable to any portion of the consideration payable in
such reclassification, change, consolidation, merger, binding share exchange,
sale, transfer, lease, conveyance or disposition, and shall be conducted in
such a manner as to be completed by the close of business on the actual
effective date of such reclassification, change, consolidation, merger, binding
share exchange, sale, transfer, lease, conveyance or disposition. The Company
shall provide notice of the opportunity to determine the form of such
consideration, as well as notice of the determination made by Holders, by
issuing a press release and providing a copy of such notice to the Trustee. The
Company shall not become a party to any reclassification, change,
consolidation, merger, binding share exchange, sale, transfer, lease,
conveyance or disposition, the terms of which are inconsistent with this
paragraph and the immediately preceding paragraph.

The supplemental indenture referred to in the first
sentence of this Section 10.11 shall provide
for adjustments of the Conversion Rate which shall be as nearly equivalent as
may be practicable to the adjustments of the Conversion Rate provided for in
this Article X. The foregoing, however,
shall not in any way affect the right a Holder of a Security may otherwise
have, pursuant to Section 10.05(b) or
Section 10.13, to receive rights
or warrants upon conversion of a Security. If, in the case of any such
consolidation, merger, binding share exchange, sale, transfer, lease,
conveyance or disposition, the stock or other securities and property
(including cash) receivable thereupon by a holder of Common Stock includes
shares of stock or other securities and property of a Person other than the
successor or purchasing Person, as the case may be, in such consolidation,
merger, binding share exchange, sale, transfer, lease, conveyance or
disposition, 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 in good
faith shall reasonably determine necessary by reason of the foregoing (which
determination shall be described in a Board Resolution). The provisions of this
Section 10.11 shall similarly
apply to successive consolidations, mergers, binding share exchanges, sales, transfers,
leases, conveyances or dispositions.

In the event the Company shall execute a supplemental
indenture pursuant to this Section 10.11,
the Company shall promptly file with the Trustee an Officer’s Certificate
briefly stating the reasons therefor, the kind or amount of shares of stock or
securities or property (including cash) receivable by Holders of the Securities
upon the conversion of their Securities after any such reclassification,
change, consolidation, merger, binding share exchange, sale, transfer, lease,
conveyance or disposition and any adjustment to be made with respect thereto.

10.12       TRUSTEE’S DISCLAIMER.

The Trustee has no duty to determine when an
adjustment under this Article X
should be made, how it should be made or what such adjustment should be, but
may accept as conclusive evidence of the correctness of any such adjustment,
and shall be protected in relying upon, the

 57
 

 

Officer’s Certificate with respect thereto which the
Company is obligated to file with the Trustee pursuant to Section 10.09
hereof. 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 failure by the Company to comply with any
provisions of this Article X.

The Trustee shall not be under any responsibility to
determine the correctness of any provisions contained in any supplemental
indenture executed pursuant to Section 10.11,
but may accept as conclusive evidence of the correctness thereof, and shall be
protected in relying upon, the Officer’s Certificate with respect thereto which
the Company is obligated to file with the Trustee pursuant to Section 10.11 hereof.

10.13       RIGHTS
DISTRIBUTIONS PURSUANT TO STOCKHOLDERS’ RIGHTS PLANS.

Upon conversion of any Security or a portion thereof,
the Company shall make provision such that the Holder thereof shall, to the
extent such Holder is to receive shares of Common Stock upon such conversion,
receive, in addition to, and concurrently with the delivery of, the
consideration otherwise payable hereunder upon such conversion, the rights
described in the Rights Agreement (as the same may be amended, supplemented or
replaced) and any future stockholders’ rights plan(s) of the Company then
in effect; provided, however,
that no such provision need be made if the rights have been separated from the
Common Stock prior to the time of such conversion, but the provisions of Section 10.05(b) shall apply.

10.14       INCREASED CONVERSION RATE APPLICABLE TO CERTAIN NOTES
SURRENDERED IN CONNECTION WITH MAKE-WHOLE FUNDAMENTAL CHANGES.

(A)          Notwithstanding anything herein to the
contrary, the Conversion Rate applicable to each Security that is surrendered
for conversion, in accordance with this Article X,
at any time during the period (the “Make-Whole
Conversion Period”) that begins on, and includes, the date that is forty five (45)
calendar days prior to the date originally announced by the Company as the
anticipated effective date of a Make-Whole Fundamental Change (which
anticipated effective date the Company shall disclose, in good faith, in the
written notice and public announcement referred to in Section 10.14(D)) and ends on, and includes, the date that is thirty
(30) Business Days after the actual effective date of such Make-Whole
Fundamental Change (or, if such Make-Whole Fundamental Change also constitutes
a Fundamental Change, the Fundamental Change Repurchase Date applicable to such
Fundamental Change) shall be increased to an amount equal to the Conversion
Rate that would, but for this Section 10.14, otherwise apply to such Security pursuant to this Article X, plus an amount equal to the Make-Whole Applicable Increase; provided, however, that
such increase to the Conversion Rate shall not apply if such Make-Whole
Fundamental Change is announced by the Company but shall not be consummated.

The additional
consideration payable hereunder on account of any Make-Whole Applicable
Increase with
respect to a Security surrendered for conversion is herein referred to as the “Make-Whole Consideration.” 
For avoidance of doubt, the amount of the Make-Whole Consideration due
upon the conversion of a Security shall be based on the Cash Settlement Averaging Period and Volume-Weighted Average
Prices applicable to such
conversion pursuant to Section 10.02.

 58
 

 

The Make-Whole
Consideration due upon a conversion of a Security by a Holder shall be paid as
soon as practicable, but in no event later than third Business Day after the
later of (1) the date such Holder surrenders such Security for such conversion;
(2) the last Trading Day in the Cash Settlement Averaging Period
applicable to such conversion; and (3) the Effective Date of the
applicable Make-Whole Fundamental Change.

(B)           As used herein, “Make-Whole Applicable Increase” shall mean,
with respect to a Make-Whole Fundamental Change, the amount, set forth in the
following table, which corresponds to the effective date of such Make-Whole
Fundamental Change (the “Effective Date”)
and the Applicable Price of such Make-Whole Fundamental Change:

	
   

  	
   

  	
  Effective Date

  	
   

  
	
  Applicable Price

  	
   

  	
  June 28, 2006

  	
   

  	
  July 15, 2007

  	
   

  	
  July 15, 2008

  	
   

  	
  July 15, 2009

  	
   

  	
  July 15, 2010

  	
   

  	
  July 15, 2011

  	
   

  
	
  $27.24

  	
   

  	
  7.20

  	
   

  	
  7.41

  	
   

  	
  7.31

  	
   

  	
  7.14

  	
   

  	
  6.87

  	
   

  	
  7.00

  	
   

  
	
  $30.00

  	
   

  	
  5.72

  	
   

  	
  5.80

  	
   

  	
  5.57

  	
   

  	
  5.22

  	
   

  	
  4.63

  	
   

  	
  3.59

  	
   

  
	
  $35.00

  	
   

  	
  3.90

  	
   

  	
  3.86

  	
   

  	
  3.52

  	
   

  	
  3.03

  	
   

  	
  2.23

  	
   

  	
  0

  	
   

  
	
  $40.00

  	
   

  	
  2.77

  	
   

  	
  2.67

  	
   

  	
  2.32

  	
   

  	
  1.83

  	
   

  	
  1.09

  	
   

  	
  0

  	
   

  
	
  $45.00

  	
   

  	
  2.03

  	
   

  	
  1.93

  	
   

  	
  1.60

  	
   

  	
  1.17

  	
   

  	
  0.58

  	
   

  	
  0

  	
   

  
	
  $50.00

  	
   

  	
  1.54

  	
   

  	
  1.44

  	
   

  	
  1.15

  	
   

  	
  0.79

  	
   

  	
  0.36

  	
   

  	
  0

  	
   

  
	
  $55.00

  	
   

  	
  1.20

  	
   

  	
  1.11

  	
   

  	
  0.87

  	
   

  	
  0.58

  	
   

  	
  0.26

  	
   

  	
  0

  	
   

  
	
  $60.00

  	
   

  	
  0.95

  	
   

  	
  0.89

  	
   

  	
  0.68

  	
   

  	
  0.44

  	
   

  	
  0.21

  	
   

  	
  0

  	
   

  
	
  $65.00

  	
   

  	
  0.77

  	
   

  	
  0.72

  	
   

  	
  0.55

  	
   

  	
  0.36

  	
   

  	
  0.18

  	
   

  	
  0

  	
   

  
	
  $70.00

  	
   

  	
  0.64

  	
   

  	
  0.60

  	
   

  	
  0.45

  	
   

  	
  0.30

  	
   

  	
  0.16

  	
   

  	
  0

  	
   

  
	
  $75.00

  	
   

  	
  0.53

  	
   

  	
  0.51

  	
   

  	
  0.38

  	
   

  	
  0.26

  	
   

  	
  0.14

  	
   

  	
  0

  	
   

  
	
  $80.00

  	
   

  	
  0.45

  	
   

  	
  0.44

  	
   

  	
  0.33

  	
   

  	
  0.23

  	
   

  	
  0.13

  	
   

  	
  0

  	
   

  
	
  $85.00

  	
   

  	
  0.38

  	
   

  	
  0.38

  	
   

  	
  0.29

  	
   

  	
  0.20

  	
   

  	
  0.12

  	
   

  	
  0

  	
   

  
	
  $90.00

  	
   

  	
  0.33

  	
   

  	
  0.33

  	
   

  	
  0.26

  	
   

  	
  0.18

  	
   

  	
  0.11

  	
   

  	
  0

  	
   

  
	
  $95.00

  	
   

  	
  0.28

  	
   

  	
  0.29

  	
   

  	
  0.23

  	
   

  	
  0.17

  	
   

  	
  0.10

  	
   

  	
  0

  	
   

  
	
  $100.00

  	
   

  	
  0.25

  	
   

  	
  0.26

  	
   

  	
  0.21

  	
   

  	
  0.15

  	
   

  	
  0.10

  	
   

  	
  0

  	
   

  

 

provided,
however, that:

(i)      if the actual Applicable
Price of such Make-Whole Fundamental Change is between two (2) prices
listed in the table above under the column titled “Applicable Price,” or if the
actual Effective Date of such Make-Whole Fundamental Change is between two
dates listed in the table above in the row immediately below the title “Effective
Date,” then the Make-Whole
Applicable Increase for such Make-Whole Fundamental Change shall be
determined by linear interpolation between the Make-Whole Applicable Increases set forth for such two prices,
or for such two dates based on a three hundred and sixty five (365) day year,
as applicable;

(ii)     if the actual Applicable
Price of such Make-Whole Fundamental Change is greater than $100.00 per share
(subject to adjustment as provided in Section 10.14(B)(iii)),
or if the actual Applicable Price of such Make-Whole Fundamental Change is less
than $27.24 per share (subject to adjustment as provided in Section 10.14(B)(iii)), then the Make-Whole Applicable Increase
shall be equal to zero (0);

(iii)    if an event occurs that
requires, pursuant to this Article X
(other than solely pursuant to this Section 10.14),
an adjustment to the Conversion Rate, then, on the date and at the time such
adjustment is so required to be made, each price set forth in the table above
under the column titled “Applicable Price” shall be deemed to be adjusted so
that such price, at and after such time, shall be equal to the product of (1) such
price as in effect immediately before such adjustment to such price and (2) a

 59
 

 

fraction whose numerator is the Conversion Rate in effect immediately
before such adjustment to the Conversion Rate and whose denominator is the
Conversion Rate to be in effect, in accordance with this Article X, immediately after such
adjustment to the Conversion Rate;

(iv)    each Make-Whole Applicable Increase
amount set forth in the table above shall be adjusted in the same manner in
which, and for the same events for which, the Conversion Rate is to be adjusted
pursuant to Section 10.05
through Section 10.13; and

(v)     in no event shall the
Conversion Rate applicable to any Security be increased pursuant to this Section 10.14 to the extent, but only
to the extent, such increase shall cause the Conversion Rate applicable to such
Security to exceed 36.7107 shares per $1,000 principal amount (the “BCF Make-Whole Cap”); provided,
however, that the BCF Make-Whole Cap
shall be adjusted in the same manner in which, and for the same events for
which, the Conversion Rate is to be adjusted pursuant to this Article X.

(C)           As
used herein, “Applicable Price”
shall have the following meaning with respect to a Make-Whole Fundamental
Change: (a) if such Make-Whole Fundamental Change constitutes a Common
Stock Change Make-Whole Fundamental Change and the consideration (excluding
cash payments for fractional shares or pursuant to statutory appraisal rights)
for the Common Stock in such Make-Whole Fundamental Change consists solely of
cash, then the “Applicable Price” with respect to such Make-Whole Fundamental
Change shall be equal to the cash amount paid per share of Common Stock in such
Make-Whole Fundamental Change; (b) if such Make-Whole Fundamental Change
constitutes an Asset Sale Make-Whole Fundamental Change and the consideration
paid for the property and assets of the Company consists solely of cash, then
the “Applicable Price” with respect to such Make-Whole Fundamental Change shall
be equal to the cash amount paid for the property and assets of the Company,
expressed as an amount per share of Common Stock outstanding on the Effective
Date of such Make-Whole Fundamental Change; and (c) in all other
circumstances, the “Applicable Price” with respect to such Make-Whole
Fundamental Change shall be equal to the average of the Closing Sale Prices per
share of Common Stock for the five (5) consecutive Trading Days
immediately preceding the Effective Date of such Make-Whole Fundamental Change,
which average shall
be appropriately adjusted by the Company, in its good faith
determination, to account for any
adjustment, pursuant hereto, to the Conversion Rate that shall become
effective, or any event requiring, pursuant hereto, an adjustment to the
Conversion Rate where the Ex Date of such event occurs, at any time during such
five (5) consecutive Trading Days.

(D)          At least forty five (45) calendar days before the first
anticipated effective date of each proposed Make-Whole Fundamental Change, the
Company shall mail to each Holder, in accordance with Section 11.02, written notice of, and
shall publicly announce, through a reputable national newswire service, the
anticipated effective date of such proposed Make-Whole Fundamental Change. Each
such notice and announcement shall also state that, in connection with such
Make-Whole Fundamental Change, the Company shall increase, in accordance
herewith, the Conversion Rate applicable to Securities entitled as provided
herein to such increase (along with a description of how such increase shall be
calculated and the time periods

 60
 

 

during which Securities must be surrendered in order to be entitled to
such increase).
No later than the third Business Day after the Effective Date of each
Make-Whole Fundamental Change, the Company shall mail, in accordance
with Section 11.02, written
notice of, and shall publicly announce, through a reputable national newswire
service, such Effective Date and the Make-Whole
Applicable Increase applicable to such Make-Whole Fundamental Change.

(E)           For avoidance of
doubt, the provisions of this Section 10.14
shall not affect or diminish the Company’s obligations, if any, pursuant to Article IV with respect to a
Make-Whole Fundamental Change.

(F)           Nothing in this Section 10.14 shall prevent an
adjustment to the Conversion Rate pursuant to Section 10.05
in respect of a Make-Whole Fundamental Change.

XI.           MISCELLANEOUS

11.01       TRUST INDENTURE ACT CONTROLS.

If any provision of this
Indenture limits, qualifies or conflicts with another provision which is
required to be included in this Indenture by the TIA, the required provision of
the TIA shall control.

11.02       NOTICES.

Any notice or
communication by the Company or the Trustee to the other shall be deemed to be
duly given if made in writing and delivered:

(A)          by hand (in which
case such notice shall be effective upon delivery);

(B)           by facsimile (in
which case such notice shall be effective upon receipt of confirmation of good
transmission thereof); or

(C)           by overnight delivery by a nationally
recognized courier service (in which case such notice shall be effective on the
Business Day immediately after being deposited with such courier service),

in each case to the
recipient party’s address or facsimile number, as applicable, set forth in this
Section 11.02. The Company or the
Trustee by notice to the other may designate additional or different addresses
or facsimile numbers for subsequent notices or communications.

Any notice or
communication to a Holder shall be mailed to its address shown on the register
kept by the Registrar. Failure to mail a notice or communication to a Holder or
any defect in it shall not affect its sufficiency with respect to other
Holders.

If a notice or
communication is mailed in the manner provided above, it is duly given, whether
or not the addressee receives it.

 61
 

 

If the Company mails a
notice or communication to Holders, it shall mail a copy to the Trustee and
each Securities Agent at the same time. If the Trustee or the Securities Agent
is required, pursuant to the express terms of this Indenture or the Securities,
to mail a notice or communication to Holders, the Trustee or the Securities
Agent, as the case may be, shall also mail a copy of such notice or
communication to the Company.

All notices or
communications shall be in writing.

The Company’s
address is:

MedImmune, Inc.

One MedImmune Way

Gaithersburg, MD 20878

Attn: Vice President, Finance

Facsimile: 301-398-4470

with a copy to:

MedImmune, Inc.

One MedImmune Way

Gaithersburg, MD 20878

Attn: General Counsel

Facsimile: 301-398-4625

The Trustee’s address is:

The Bank of New York

101 Barclay Street

Floor 8 West

New York, NY 10286

Attn: Corporate Trust Administration

Facsimile: 212-815-3272

11.03       COMMUNICATION BY HOLDERS WITH OTHER HOLDERS.

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

11.04       CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT.

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:

(i)         an
Officer’s Certificate stating that, in the opinion of the signatories to such
Officer’s Certificate, all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with; and

 62
 

 

(ii)        an
Opinion of Counsel stating that, in the opinion of such counsel, all such
conditions precedent have been complied with.

Each signatory to an
Officer’s Certificate or an Opinion of Counsel may (if so stated) rely,
effectively, upon an Opinion of Counsel as to legal matters and an Officer’s
Certificate or certificates of public officials as to factual matters if such
signatory reasonably and in good faith believes in the accuracy of the document
relied upon.

11.05       STATEMENTS REQUIRED IN CERTIFICATE OR OPINION.

Each Officer’s
Certificate or Opinion of Counsel with respect to compliance with a condition
or covenant provided for in this Indenture shall include:

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

(ii)        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;

(iii)       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

(iv)       a
statement as to whether or not, in the opinion of such person, such condition
or covenant has been complied with.

11.06       RULES BY TRUSTEE AND AGENTS.

The Trustee may make
reasonable rules for action by or at a meeting of Holders. The Registrar, Paying
Agent or Conversion Agent may make reasonable rules and set reasonable
requirements for their respective functions.

11.07       LEGAL HOLIDAYS.

A “Legal
Holiday” is a Saturday, a Sunday or a day on which banking
institutions are not required to be open in the City of New York, in the State
of New York. If a payment date is a Legal Holiday at a place of payment,
payment may be made at that place on the next succeeding day that is not a
Legal Holiday, and no interest shall accrue on that payment for the intervening
period.

A “Business Day”
is a day other than a Legal Holiday.

11.08       DUPLICATE ORIGINALS.

The parties may sign any
number of copies of this Indenture. Each signed copy shall be an original, but
all of them together represent the same agreement. Delivery of an executed
counterpart by facsimile shall be effective as delivery of a manually executed
counterpart thereof.

 63
 

 

11.09       GOVERNING LAW.

The laws of the State of
New York, without regard to principles of conflicts of law, shall govern this
Indenture and the Securities.

11.10       NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS.

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

11.11       SUCCESSORS.

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

11.12       SEPARABILITY.

In case any provision in
this Indenture or in the Securities shall be invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby and a Holder shall have no claim
therefor against any party hereto.

11.13       TABLE OF CONTENTS, HEADINGS, ETC.

The Table of Contents,
Cross-Reference Table 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.

11.14       CALCULATIONS IN RESPECT OF THE SECURITIES.

The Company and its
agents (including, without limitation, the Bid Solicitation Agent) shall make
all calculations under this Indenture and the Securities in good faith. In the
absence of manifest error, such calculations shall be final and binding on all
Holders. The Company shall provide a copy of such calculations to the Trustee
as required hereunder, and, absent such manifest error, the Trustee shall be
entitled to conclusively rely on the accuracy of any such calculation without
independent verification.

11.15       NO PERSONAL LIABILITY OF DIRECTORS, OFFICERS,
EMPLOYEES OR STOCKHOLDERS.

None of the Company’s past, present or future directors,
officers, employees or stockholders, as such, shall have any liability for any
of the Company’s obligations under this Indenture or the Securities or for any
claim based on, or in respect or by reason of, such obligations or their
creation. By accepting a Security, each holder waives and releases all such
liability. This waiver and release is part of the consideration for the issue
of the Securities.

 64
 

 

11.16       FORCE MAJEURE.

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

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

 65

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

	
  

  	
  MEDIMMUNE, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/: Lota Zoth

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
  Lota Zoth

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Senior Vice President and Chief Financial Officer

  

 

 

 

	
  

  	
  THE BANK OF NEW YORK

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/: Cheryl Clarke

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
  Cheryl Clarke

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President

  

 

 2

 

 

EXHIBIT A

[Face
of Security]

MEDIMMUNE,
INC.

Certificate No. _______

[INSERT PRIVATE PLACEMENT
LEGEND AND GLOBAL SECURITY LEGEND AS REQUIRED]

1.375% Convertible
Senior Note due 2011

CUSIP No. ____________

MedImmune, Inc., a
Delaware corporation (the “Company”), for
value received, hereby promises to pay to Cede & Co., or its
registered assigns, the principal sum of _____________________ dollars
($__________) on July 15, 2011 and to pay interest thereon, as provided on
the reverse hereof, until the principal and any unpaid and accrued interest are
paid or duly provided for.

Interest Payment Dates: January 15
and July 15, with the first payment to be made on January 15, 2007.

Record Dates: January 1
and July 1.

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

IN WITNESS WHEREOF,
MedImmune, Inc. has caused this instrument to be duly signed.

 

	
  

  	
   

  	
   

  	
   

  	
  MEDIMMUNE, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name: 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 A-1
 

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

	
  THE BANK OF NEW YORK, as Trustee

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Signatory

  	
   

  	
   

  	
   

  

 

	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 A-2
 

 

 

[REVERSE OF
SECURITY]

MEDIMMUNE, INC.

1.375%
Convertible Senior Note due 2011

1.             Interest.
MedImmune, Inc., a Delaware corporation (the “Company”),
promises to pay interest on the principal amount of this Security at the rate per annum shown above. The Company will pay interest,
payable semi-annually in arrears, on January 15 and July 15 of each
year, with the first payment to be made on January 15, 2007. Interest on
the Securities will accrue on the principal amount from, and including, the
most recent date to which interest has been paid or provided for or, if no
interest has been paid, from, and including, June 28, 2006, in each case
to, but excluding, the next interest payment date or Maturity Date, as the case
may be. Interest will be computed on the basis of a 360-day year of
twelve 30-day months.

2.             Maturity.
The Securities will mature on July 15, 2011.

3.             Method of
Payment. Except as provided in the Indenture (as defined below), the
Company will pay interest on the Securities to the persons who are Holders of
record of Securities at the close of business on the record date set forth on
the face of this Security next preceding the applicable interest payment date. Holders
must surrender Securities to a Paying Agent to collect the principal amount or
Fundamental Change Repurchase Price of the Securities, plus, if applicable,
accrued and unpaid interest, if any, payable as herein provided on the Maturity
Date or upon Repurchase Upon Fundamental Change, as the case may be. The
Company will pay, in money of the United States that at the time of payment is
legal tender for payment of public and private debts, all amounts due in cash
with respect to the Securities, which amounts shall be paid (A) in the
case this Security is in global form, by wire transfer of immediately available
funds to the account designated by the Depositary or its nominee; (B) in
the case this Security is held, other than global form, by a Holder of more
than five million dollars ($5,000,000) in aggregate principal amount of
Securities, by wire transfer of immediately available funds to the account
specified by such Holder or, if such Holder does not specify an account, by
mailing a check to the address of such Holder set forth in the register of the
Registrar; and (C) in the case this Security is held, other than global
form, by a Holder of five million dollars ($5,000,000) or less in aggregate
principal amount of Securities, by mailing a check to the address of such
Holder set forth in the register of the Registrar.

4.             Paying
Agent, Registrar, Conversion Agent. Initially, The Bank of New York
(the “Trustee”) will act as Paying Agent,
Registrar, Bid Solicitation Agent and Conversion Agent. The Company may change
any Paying Agent, Registrar, Bid Solicitation Agent or Conversion Agent without
prior notice.

5.             Indenture.
The Company issued the Securities under an Indenture dated as of June 28,
2006 (the “Indenture”) between the Company
and the Trustee. The terms of the Securities include those stated in the
Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) (the “TIA”) as amended and in effect from time to time. The
Securities are subject to all such terms, and Holders are referred to the
Indenture and the TIA for a statement of such terms. The Securities are general
unsecured

 A-3
 

 

 

senior obligations of the Company limited to
$500,000,000 aggregate principal amount ($575,000,000 if the Initial Purchasers
have elected to exercise in full the Option to purchase up to an additional
$75,000,000 aggregate principal amount of the Securities), except as otherwise
provided in the Indenture (except for Securities issued in substitution for
destroyed, mutilated, lost or stolen Securities). Terms used herein without
definition and which are defined in the Indenture have the meanings assigned to
them in the Indenture.

6.             No Optional
Redemption.

Prior to maturity, the
Securities shall not be subject to redemption at the option of the Company.

7.             Repurchase
at Option of Holder Upon a Fundamental Change. Subject to the terms
and conditions of the Indenture, in the event of a Fundamental Change, each
Holder of the Securities shall have the right, at the Holder’s option, to require
the Company to repurchase such Holder’s Securities including any portion
thereof which is $1,000 in principal amount or any integral multiple thereof on
a date selected by the Company (the “Fundamental Change
Repurchase Date”), which date is no later than thirty five (35)
days, nor earlier than twenty (20) days, after the date on which notice of such
Fundamental Change is mailed in accordance with the Indenture, at a price
payable in cash equal to one hundred percent (100%) of the principal amount of
such Security, plus accrued and unpaid interest to, but excluding, the
Fundamental Change Repurchase Date; provided, however, that if such Fundamental Change Repurchase Date is
after a record date for the payment of an installment of interest and on or
before the related interest payment date, then the accrued and unpaid interest,
if any, to, but excluding, such interest payment date will be paid on such
interest payment date to the Holder of record of such Securities at the close
of business on such record date, and the Holder surrendering such Securities
for repurchase will not be entitled to any such accrued and unpaid interest
unless such Holder was also the Holder of record of such Securities at the
close of business on such record date.

8.             Conversion.

The Securities shall
be convertible into cash, and if applicable, shares of Common Stock if and to
the extent the conditions therefor specified the Indenture are satisfied.

To convert a
Security, a Holder must (1) complete and sign the Conversion Notice, with
appropriate signature guarantee, on the back of the Security, (2) surrender
the Security to a Conversion Agent, (3) furnish appropriate endorsements
and transfer documents if required by the Registrar or Conversion Agent, (4) pay
the amount of interest, if any, the Holder must pay in accordance with the
Indenture and (5) pay any tax or duty if required pursuant to the
Indenture. A Holder may convert a portion of a Security if the portion is
$1,000 principal amount or an integral multiple of $1,000 principal amount.

Notwithstanding anything herein to the contrary, no
Security may be converted after the close of business on the Business Day
immediately preceding the Maturity Date.

 A-4
 

 

 

Upon conversion of a
Security, the Holder thereof shall be entitled to receive the cash and, if
applicable, shares of Common Stock payable upon conversion in accordance with Article X of the Indenture.

The initial Conversion
Rate is 29.9679 shares of Common Stock per $1,000 principal amount of
Securities (which results in an effective initial Conversion Price of
approximately $33.37 per share) subject to adjustment in the event of certain
circumstances as specified in the Indenture. The Company will deliver cash in
lieu of any fractional share.

The Conversion Rate
applicable to each Security that is surrendered for conversion, in accordance
with the Securities and Article X
of the Indenture, at any time during the Make-Whole Conversion Period with
respect to a Make-Whole Fundamental Change shall be increased to an amount equal to
the Conversion Rate that would, but for Section 10.14 of the Indenture, otherwise apply to
such Security pursuant to Article X
of the Indenture, plus an amount
equal to the Make-Whole Applicable Increase; provided, however,
that such increase to the Conversion Rate shall not apply if such Make-Whole
Fundamental Change is announced by the Company but shall not be consummated.

9.             Denominations,
Transfer, Exchange. The Securities are in registered form, without
coupons, in denominations of $1,000 principal amount and integral multiples of
$1,000 principal amount. The transfer of Securities may be registered and
Securities may be exchanged as provided in the Indenture. The Registrar may
require a Holder, among other things, to furnish appropriate endorsements and
transfer documents. No service charge shall be made for any such registration
of transfer or exchange, but the Company may require payment of a sum
sufficient to cover any tax or similar governmental charge that may be imposed
in connection with certain transfers or exchanges. The Company or the Trustee,
as the case may be, shall not be required to register the transfer of or
exchange any Security for which a Purchase Notice has been delivered, and not
withdrawn, in accordance with the Indenture, except the unrepurchased portion
of Securities being repurchased in part.

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

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

12.           Amendments, Supplements
and Waivers. Subject to certain exceptions, the Indenture or the
Securities may be amended or supplemented with the consent of the Holders of at
least a majority in aggregate principal amount of the outstanding Securities,
and certain existing Defaults or Events of Default may be waived with the
consent of the Holders of a 

 

 A-5
 

 

 

majority in aggregate principal amount of the
Securities then outstanding. In accordance with the terms of the Indenture, the
Company, with the consent of the Trustee, may amend or supplement this Indenture
or the Securities without notice to or the consent of any Securityholder: (i) to
comply with Sections  5.01
and 10.11 of the Indenture; (ii) to
make any changes or modifications to the Indenture necessary in connection with
the registration of the Securities under the Securities Act pursuant to the
Registration Rights Agreement or the qualification of the Indenture under the
TIA; (iii) to secure the obligations of the Company in respect of the
Securities; (iv) to add to the covenants of the Company described in the
Indenture for the benefit of Securityholders or to surrender any right or power
conferred upon the Company; and (v) to make provisions with respect to
adjustments to the Conversion Rate as required by the Indenture or to increase
the Conversion Rate in accordance with the Indenture. In addition, the Company
and the Trustee may enter into a supplemental indenture without the consent of
Holders of the Securities to (i) cure any ambiguity, defect, omission or
inconsistency in the Indenture in a manner that does not, individually or in
the aggregate with all other changes, adversely affect the rights of any Holder
in any material respect or (ii) conform the Indenture or the Securities to
the description thereof contained in the Offering Memorandum under the caption “Description
of notes.”

13.           Defaults and Remedies.

If an Event of Default
(excluding an Event of Default specified in Section 6.01(viii) or (ix) of the Indenture with respect to the Company (but
including an Event of Default specified in Section 6.01(viii) or (ix) of the Indenture solely with respect to a
Significant Subsidiary of the Company or any group of Subsidiaries that in the
aggregate would constitute a Significant Subsidiary of the Company)) occurs and
is continuing, the Trustee by notice to the Company or the Holders of at least
twenty five percent (25%) in principal amount of the Securities then outstanding
by notice to the Company and the Trustee may declare the Securities to be due
and payable. Upon such declaration, the principal of, and any premium and accrued
and unpaid interest (including any additional interest) on, all Securities
shall be due and payable immediately. If an Event of Default specified in Section 6.01(viii) or (ix) of
the Indenture with respect to the Company (excluding, for purposes of this
sentence, an Event of Default specified in Section 6.01(viii) or (ix) of the Indenture solely with respect to a
Significant Subsidiary of the Company or any group of Subsidiaries that in the
aggregate would constitute a Significant Subsidiary of the Company) occurs, the
principal of, and premium and accrued and unpaid interest (including any
additional interest) on, all the Securities shall ipso facto become
and be immediately due and payable without any declaration or other act on the
part of the Trustee or any Holder. The Holders of a majority in aggregate
principal amount of the Securities then outstanding by written notice to the
Trustee may rescind or annul an acceleration and its consequences if (A) the
rescission would not conflict with any order or decree, (B) all existing
Events of Default, except the nonpayment of principal, premium or interest
(including additional interest) that has become due solely because of the
acceleration, have been cured or waived and (C) all amounts due to the
Trustee under Section 7.07 of the Indenture
have been paid.

Holders may not enforce
the Indenture or the Securities except as provided in the Indenture. The
Holders of a majority in aggregate principal amount of the Securities then
outstanding may direct the time, method and place of conducting any proceeding
for any remedy available to the Trustee or exercising any trust or power
conferred on it. However, the Trustee

 

 A-6
 

 

may refuse to follow any direction that conflicts with
law or the Indenture, is unduly prejudicial to the rights of other Holders or
would involve the Trustee in personal liability unless the Trustee is offered
indemnity reasonably satisfactory to it; provided, that
the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction.

If a Default or Event of
Default occurs and is continuing as to which the Trustee has received written
notice pursuant to the provisions of the Indenture, or as to which a
Responsible Officer of the Trustee shall have actual knowledge, the Trustee
shall mail to each Holder a notice of the Default or Event of Default within
thirty (30) days after it occurs unless such Default or Event of Default has
been cured or waived. Except in the case of a Default or Event of Default in
payment of any amounts due with respect to any Security, the Trustee may
withhold the notice if, and so long as it in good faith determines that,
withholding the notice is in the best interests of Holders. The Company must
deliver to the Trustee an annual compliance certificate.

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

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

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

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

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

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

MedImmune, Inc.

One MedImmune Way

Gaithersburg, MD
20878

Attn: General Counsel

 

 A-7

 

[FORM OF
ASSIGNMENT]

	
  I or we assign to

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PLEASE INSERT SOCIAL
  SECURITY OR OTHER IDENTIFYING NUMBER

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  
	
   

  
	
  (please print or type
  name and address)

  
	
   

  	
   

  	
   

  
	
   

  
	
   

  	
   

  	
   

  
	
   

  
	
   

  	
   

  	
   

  
	
  the within Security and
  all rights thereunder, and hereby irrevocably constitute and appoint

  
	
   

  	
   

  	
   

  
	
   

  
	
   

  	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
  

  	
   

  	
   

  	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
							

 

 A-8
 

 

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

[Check One]

(1)                      ____           to the Company or any Subsidiary
thereof, or

(2)                      ____           pursuant to, and in compliance with,
the exemption from registration provided by Rule 144A under the Securities
Act of 1933, as amended, or

(3)                      ____           pursuant to, and in compliance with,
the exemption from registration provided by Rule 144 under the Securities
Act of 1933, as amended, or

(4)                      ____           pursuant to, and in compliance with,
an exemption from registration under the Securities Act of 1933, as amended,
other than Rule 144A or Rule 144, or

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

Unless one of the
items (1) through (5) is checked, the Registrar will refuse to
register any of the Securities evidenced by this certificate in the name of any
person other than the registered Holder thereof; provided,
however, that if item (3) or (4) is
checked, the Company or the Registrar may require, prior to registering any
such transfer of the Securities, in their sole discretion, such written legal
opinions, certifications and other information as the Registrar or the Company
have reasonably requested to confirm that such transfer is being made pursuant
to an exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act of 1933, as amended. If item (2) is
checked, the purchaser must complete the certification below.

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

 

	
  Dated:

  	
   

  	
   

  	
  Signed:

  	
   

  
	
   

  	
   

  	
   

  	
   

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

  

 

 

	
  Signature Guarantee:

  	
   

  

 

 A-9
 

 

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

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

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NOTICE:  To be
  executed by an executive officer

  

 

 A-10
 

 

CONVERSION NOTICE

To convert this
Security in accordance with the Indenture, check the box: o

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

$__________________

If
you want the stock certificate representing the shares of Common Stock, if any,
issuable upon conversion made out in another person’s name, fill in the form
below:

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

 

 

 

 

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

 

	
  Date:

  	
   

  	
   

  	
  Signature(s):

  	
   

  

	
  

  	
   

  	
   

  
	
  

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Signature(s) guaranteed
  by:

  	
   

  	
   

  
	
   

  	
   

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

  

 

 A-11
 

 

PURCHASE NOTICE

Certificate No. of Security:  ___________

If you want to elect to
have this Security purchased by the Company pursuant to Section 3.02
of the Indenture, check the box: o

If you want to elect to
have only part of this Security purchased by the Company pursuant to Section 3.02 of the Indenture, state the principal
amount to be so purchased by the Company:

$ __________________________________

(in an integral multiple of $1,000)

 

	
  Date:

  	
   

  	
   

  	
  Signature(s):

  	
   

  

 

	
  

  	
   

  	
   

  
	
  

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Signature(s) guaranteed
  by:

  	
   

  	
   

  
	
   

  	
   

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

  

 

 A-12
 

 

SCHEDULE A

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL
SECURITY(1)

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

	
  Date of Exchange

  	
   

  	
  Amount of decrease in Principal amount of
  this Global Security

  	
   

  	
  Amount of Increase in Principal amount of
  this Global Security

  	
   

  	
  Principal amount

  of this Global

  Security following

  such decrease

  or increase

  	
   

  	
  Signature or authorized signatory of
  Trustee or Note Custodian

  

 

(1) This is included
in Global Securities only.

 A-13

 

EXHIBIT B-1A

FORM OF
PRIVATE PLACEMENT LEGEND (SECURITIES)

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

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

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

(A)                             TO THE
COMPANY OR ANY SUBSIDIARY THEREOF,

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

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

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

PRIOR TO THE
REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH (3)(D) ABOVE, THE COMPANY
AND THE TRUSTEE RESERVE THE RIGHT TO REQUIRE THE DELIVERY OF SUCH LEGAL
OPINIONS, CERTIFICATIONS OR OTHER EVIDENCE AS MAY REASONABLY BE REQUIRED
IN ORDER TO DETERMINE THAT THE PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE
WITH THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. NO REPRESENTATION
IS MADE AS TO THE AVAILABILITY OF ANY EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT.

THIS SECURITY
SHALL BE ENTITLED TO THE BENEFITS OF THAT CERTAIN REGISTRATION RIGHTS
AGREEMENT, DATED JUNE 28, 2006, AMONG MEDIMMUNE, INC. AND THE OTHER PARTIES
NAMED THEREIN.

 

 B-1A-1

 

EXHIBIT B-1A

FORM OF
PRIVATE PLACEMENT LEGEND (COMMON STOCK)

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

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

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

(A)                             TO THE
COMPANY OR ANY SUBSIDIARY THEREOF,

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

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

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

PRIOR TO THE
REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH (3)(D) ABOVE, THE COMPANY
AND THE TRUSTEE RESERVE THE RIGHT TO REQUIRE THE DELIVERY OF SUCH LEGAL
OPINIONS, CERTIFICATIONS OR OTHER EVIDENCE AS MAY REASONABLY BE REQUIRED
IN ORDER TO DETERMINE THAT THE PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE WITH
THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. NO REPRESENTATION IS
MADE AS TO THE AVAILABILITY OF ANY EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT.

THIS SECURITY
SHALL BE ENTITLED TO THE BENEFITS OF THAT CERTAIN REGISTRATION RIGHTS
AGREEMENT, DATED JUNE 28, 2006, AMONG MEDIMMUNE, INC. AND THE OTHER PARTIES
NAMED THEREIN.

 

 B-1B-1

 

EXHIBIT B-2

 

FORM OF LEGEND FOR GLOBAL SECURITY

Any Global Security
authenticated and delivered hereunder shall bear a legend (which would be in
addition to any other legends required in the case of a Restricted Security) in
substantially the following form:

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

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

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

 B-2-1

 

EXHIBIT C

Form of Notice of
Transfer Pursuant to Registration Statement

MedImmune, Inc.

One MedImmune Way

Gaithersburg, MD 20878

Attention: General
Counsel

The Bank of New
York

101 Barclay Street

Floor 8 West

New York, NY 10286

Attention:
Corporate Trust Administration

Re:                               MedImmune, Inc.
(the “Company”) 1.375% Convertible Senior
Notes due 2011 (the “Securities”)

Ladies and Gentlemen:

Please be advised that                           
has transferred $                           
aggregate principal amount of the Securities and                 
shares of the Common Stock, $0.01 par value per share, of the Company issued on
conversion of the Securities (“Stock”)
pursuant to an effective Shelf Registration Statement on Form S-3
(File No. 333-                      ).

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 Securities or Stock is named as a “Selling
Security Holder” in the Prospectus dated                            ,
or in amendments or supplements thereto, and that the aggregate principal
amount of the Securities and the number of shares of Stock transferred are [a
portion of] the Securities and Stock listed in such Prospectus, as amended or
supplemented, opposite such owner’s name.

Very truly yours,

_________________________

           (Name)

 

 C-1Exhibit 4.2

 

 

MEDIMMUNE, INC.

and

THE BANK OF NEW YORK

as Trustee

 

 

INDENTURE

Dated as of June 28, 2006

 

 

$500,000,000
Principal Amount

1.625% CONVERTIBLE SENIOR NOTES DUE 2013

 

 

 

 

CROSS-REFERENCE TABLE

	
  TIA

  	
   

  	
  Indenture

  	
   

  
	
  Section

  	
   

  	
  Section

  	
   

  
	
  310(a)(1)

  	
   

  	
   7.10

  	
   

  
	
       (a)(2)

  	
   

  	
   7.10

  	
   

  
	
       (a)(3)

  	
   

  	
  N.A.

  	
   

  
	
       (a)(4)

  	
   

  	
  N.A.

  	
   

  
	
       (a)(5)

  	
   

  	
  N.A.

  	
   

  
	
       (b)

  	
   

  	
   7.08;
  7.10; 11.02

  	
   

  
	
       (c)

  	
   

  	
  N.A.

  	
   

  
	
  311(a)

  	
   

  	
   7.11

  	
   

  
	
       (b)

  	
   

  	
   7.11

  	
   

  
	
       (c)

  	
   

  	
  N.A.

  	
   

  
	
  312(a)

  	
   

  	
   2.05

  	
   

  
	
       (b)

  	
   

  	
  11.03

  	
   

  
	
       (c)

  	
   

  	
  11.03

  	
   

  
	
  313(a)

  	
   

  	
   7.06

  	
   

  
	
       (b)(1)

  	
   

  	
  N.A.

  	
   

  
	
       (b)(2)

  	
   

  	
   7.06

  	
   

  
	
       (c)

  	
   

  	
   7.06;
  11.02

  	
   

  
	
       (d)

  	
   

  	
   7.06

  	
   

  
	
  314(a)

  	
   

  	
   4.03

  	
   

  
	
       (b)

  	
   

  	
  N.A.

  	
   

  
	
       (c)(1)

  	
   

  	
  11.04

  	
   

  
	
       (c)(2)

  	
   

  	
  11.04

  	
   

  
	
       (c)(3)

  	
   

  	
  N.A.

  	
   

  
	
       (d)

  	
   

  	
  N.A.

  	
   

  
	
       (e)

  	
   

  	
  11.05

  	
   

  
	
       (f)

  	
   

  	
  N.A.

  	
   

  
	
  315(a)

  	
   

  	
   7.01(B)

  	
   

  
	
       (b)

  	
   

  	
   7.05;
  11.02

  	
   

  
	
       (c)

  	
   

  	
   7.01(A)

  	
   

  
	
       (d)

  	
   

  	
   7.01(C)

  	
   

  
	
       (e)

  	
   

  	
   6.11

  	
   

  
	
  316(a) (last
  sentence)

  	
   

  	
   2.09

  	
   

  
	
       (a)(1)(A)

  	
   

  	
   6.05

  	
   

  
	
       (a)(1)(B)

  	
   

  	
   6.04

  	
   

  
	
       (a)(2)

  	
   

  	
  N.A.

  	
   

  
	
       (b)

  	
   

  	
   6.07

  	
   

  
	
       (c)

  	
   

  	
  N.A.

  	
   

  
	
  317(a)(1)

  	
   

  	
   6.08

  	
   

  
	
       (a)(2)

  	
   

  	
   6.09

  	
   

  
	
       (b)

  	
   

  	
   2.04

  	
   

  
	
  318(a)

  	
   

  	
  11.01

  	
   

  

 

 I

 

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  I.

  	
   

  	
  DEFINITIONS AND
  INCORPORATION BY REFERENCE

  	
   

  	
  1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.01 Definitions

  	
   

  	
  1

  	
   

  
	
   

  	
   

  	
  1.02 Other
  Definitions

  	
   

  	
  6

  	
   

  
	
   

  	
   

  	
  1.03
  Incorporation by Reference of Trust Indenture Act

  	
   

  	
  7

  	
   

  
	
   

  	
   

  	
  1.04
  Rules of Construction

  	
   

  	
  8

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II.

  	
   

  	
  THE SECURITIES

  	
   

  	
  8

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2.01
  Form and Dating

  	
   

  	
  8

  	
   

  
	
   

  	
   

  	
  2.02 Execution
  and Authentication

  	
   

  	
  9

  	
   

  
	
   

  	
   

  	
  2.03 Registrar,
  Paying Agent and Conversion Agent

  	
   

  	
  10

  	
   

  
	
   

  	
   

  	
  2.04 Paying
  Agent to Hold Money in Trust

  	
   

  	
  10

  	
   

  
	
   

  	
   

  	
  2.05 Securityholder
  Lists

  	
   

  	
  10

  	
   

  
	
   

  	
   

  	
  2.06 Transfer
  and Exchange

  	
   

  	
  11

  	
   

  
	
   

  	
   

  	
  2.07 Replacement
  Securities

  	
   

  	
  11

  	
   

  
	
   

  	
   

  	
  2.08 Outstanding
  Securities

  	
   

  	
  11

  	
   

  
	
   

  	
   

  	
  2.09 Securities
  Held by the Company or an Affiliate

  	
   

  	
  12

  	
   

  
	
   

  	
   

  	
  2.10 Temporary
  Securities

  	
   

  	
  12

  	
   

  
	
   

  	
   

  	
  2.11
  Cancellation

  	
   

  	
  13

  	
   

  
	
   

  	
   

  	
  2.12 Defaulted
  Interest

  	
   

  	
  13

  	
   

  
	
   

  	
   

  	
  2.13 CUSIP
  Numbers

  	
   

  	
  13

  	
   

  
	
   

  	
   

  	
  2.14 Deposit of
  Moneys

  	
   

  	
  13

  	
   

  
	
   

  	
   

  	
  2.15 Book-Entry
  Provisions for Global Securities

  	
   

  	
  14

  	
   

  
	
   

  	
   

  	
  2.16 Special
  Transfer Provisions

  	
   

  	
  15

  	
   

  
	
   

  	
   

  	
  2.17 Restrictive
  Legends

  	
   

  	
  16

  	
   

  
	
   

  	
   

  	
  2.18 Ranking

  	
   

  	
  16

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  III.

  	
   

  	
  REDEMPTION AND
  REPURCHASE

  	
   

  	
  17

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.01 No Right of
  Redemption at the Option of the Company

  	
   

  	
  17

  	
   

  
	
   

  	
   

  	
  3.02 Repurchase
  at Option of Holder Upon a Fundamental Change

  	
   

  	
  17

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IV.

  	
   

  	
  COVENANTS

  	
   

  	
  23

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  4.01 Payment of
  Securities

  	
   

  	
  23

  	
   

  
	
   

  	
   

  	
  4.02 Maintenance
  of Office or Agency

  	
   

  	
  24

  	
   

  
	
   

  	
   

  	
  4.03
  Rule 144A Information and Annual Reports

  	
   

  	
  24

  	
   

  
	
   

  	
   

  	
  4.04 Compliance
  Certificate

  	
   

  	
  25

  	
   

  
	
   

  	
   

  	
  4.05 Stay,
  Extension and Usury Laws

  	
   

  	
  26

  	
   

  
	
   

  	
   

  	
  4.06 Corporate
  Existence

  	
   

  	
  26

  	
   

  
	
   

  	
   

  	
  4.07 Notice of
  Default

  	
   

  	
  26

  	
   

  
	
   

  	
   

  	
  4.08 Further
  Instruments and Acts

  	
   

  	
  26

  	
   

  

 

 i
 

 

 

	
  

  	
   

  	
  4.09 Additional
  Interest Notice

  	
   

  	
  26

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V.

  	
   

  	
  SUCCESSORS

  	
   

  	
  27

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  5.01 When
  Company May Merge, etc.

  	
   

  	
  27

  	
   

  
	
   

  	
   

  	
  5.02 Successor
  Substituted

  	
   

  	
  27

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VI.

  	
   

  	
  DEFAULTS AND
  REMEDIES

  	
   

  	
  27

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6.01 Events of
  Default

  	
   

  	
  27

  	
   

  
	
   

  	
   

  	
  6.02
  Acceleration

  	
   

  	
  29

  	
   

  
	
   

  	
   

  	
  6.03 Other
  Remedies

  	
   

  	
  30

  	
   

  
	
   

  	
   

  	
  6.04 Waiver of
  Past Defaults

  	
   

  	
  30

  	
   

  
	
   

  	
   

  	
  6.05 Control by
  Majority

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
  6.06 Limitation
  on Suits

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
  6.07 Rights of
  Holders to Receive Payment

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
  6.08 Collection
  Suit by Trustee

  	
   

  	
  32

  	
   

  
	
   

  	
   

  	
  6.09 Trustee
  May File Proofs of Claim

  	
   

  	
  32

  	
   

  
	
   

  	
   

  	
  6.10 Priorities

  	
   

  	
  32

  	
   

  
	
   

  	
   

  	
  6.11 Undertaking
  for Costs

  	
   

  	
  33

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VII.

  	
   

  	
  TRUSTEE

  	
   

  	
  33

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  7.01 Duties of
  Trustee

  	
   

  	
  33

  	
   

  
	
   

  	
   

  	
  7.02 Rights of
  Trustee

  	
   

  	
  34

  	
   

  
	
   

  	
   

  	
  7.03 Individual
  Rights of Trustee

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
  7.04 Trustee’s
  Disclaimer

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
  7.05 Notice of
  Defaults

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
  7.06 Reports by
  Trustee to Holders

  	
   

  	
  36

  	
   

  
	
   

  	
   

  	
  7.07
  Compensation and Indemnity

  	
   

  	
  36

  	
   

  
	
   

  	
   

  	
  7.08 Replacement
  of Trustee

  	
   

  	
  37

  	
   

  
	
   

  	
   

  	
  7.09 Successor
  Trustee by Merger, etc.

  	
   

  	
  38

  	
   

  
	
   

  	
   

  	
  7.10
  Eligibility; Disqualification

  	
   

  	
  38

  	
   

  
	
   

  	
   

  	
  7.11
  Preferential Collection of Claims Against Company

  	
   

  	
  38

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VIII.   

  	
   

  	
  DISCHARGE OF
  INDENTURE

  	
   

  	
  38

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8.01 Termination
  of the Obligations of the Company

  	
   

  	
  38

  	
   

  
	
   

  	
   

  	
  8.02 Application
  of Trust Money

  	
   

  	
  39

  	
   

  
	
   

  	
   

  	
  8.03 Repayment
  to Company

  	
   

  	
  39

  	
   

  
	
   

  	
   

  	
  8.04
  Reinstatement

  	
   

  	
  39

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IX.

  	
   

  	
  AMENDMENTS

  	
   

  	
  39

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  9.01 Without
  Consent of Holders

  	
   

  	
  39

  	
   

  
	
   

  	
   

  	
  9.02 With
  Consent of Holders

  	
   

  	
  40

  	
   

  
	
   

  	
   

  	
  9.03 Compliance
  with Trust Indenture Act

  	
   

  	
  41

  	
   

  
	
   

  	
   

  	
  9.04 Revocation
  and Effect of Consents

  	
   

  	
  41

  	
   

  

 

 ii
 

 

 

	
  

  	
   

  	
  9.05 Notation on
  or Exchange of Securities

  	
   

  	
  42

  	
   

  
	
   

  	
   

  	
  9.06 Trustee
  Protected

  	
   

  	
  42

  	
   

  
	
   

  	
   

  	
  9.07 Effect of
  Supplemental Indentures

  	
   

  	
  42

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  X.

  	
   

  	
  CONVERSION

  	
   

  	
  43

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  10.01 Conversion
  Privilege; Restrictive Legends

  	
   

  	
  43

  	
   

  
	
   

  	
   

  	
  10.02 Conversion
  Procedure and Payment Upon Conversion

  	
   

  	
  45

  	
   

  
	
   

  	
   

  	
  10.03 Taxes on
  Conversion

  	
   

  	
  48

  	
   

  
	
   

  	
   

  	
  10.04 Company to
  Provide Stock

  	
   

  	
  48

  	
   

  
	
   

  	
   

  	
  10.05 Adjustment
  of Conversion Rate

  	
   

  	
  48

  	
   

  
	
   

  	
   

  	
  10.06 No
  Adjustment

  	
   

  	
  53

  	
   

  
	
   

  	
   

  	
  10.07 Other
  Adjustments

  	
   

  	
  55

  	
   

  
	
   

  	
   

  	
  10.08
  Adjustments for Tax Purposes

  	
   

  	
  55

  	
   

  
	
   

  	
   

  	
  10.09 Notice of
  Adjustment

  	
   

  	
  55

  	
   

  
	
   

  	
   

  	
  10.10 Notice of
  Certain Transactions

  	
   

  	
  55

  	
   

  
	
   

  	
   

  	
  10.11 Effect of Reclassifications, Consolidations,
  Mergers, Binding Share Exchanges or Sales on Conversion Privilege

  	
   

  	
  56

  	
   

  
	
   

  	
   

  	
  10.12 Trustee’s
  Disclaimer

  	
   

  	
  57

  	
   

  
	
   

  	
   

  	
  10.13 Rights
  Distributions Pursuant to Stockholders’ Rights Plans

  	
   

  	
  58

  	
   

  
	
   

  	
   

  	
  10.14 Increased Conversion Rate Applicable to
  Certain Notes Surrendered in Connection With Make-Whole Fundamental Changes

  	
   

  	
  58

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  XI.

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  61

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  11.01 Trust
  Indenture Act Controls

  	
   

  	
  61

  	
   

  
	
   

  	
   

  	
  11.02 Notices

  	
   

  	
  61

  	
   

  
	
   

  	
   

  	
  11.03
  Communication by Holders with Other Holders

  	
   

  	
  62

  	
   

  
	
   

  	
   

  	
  11.04
  Certificate and Opinion as to Conditions Precedent

  	
   

  	
  62

  	
   

  
	
   

  	
   

  	
  11.05 Statements
  Required in Certificate or Opinion

  	
   

  	
  63

  	
   

  
	
   

  	
   

  	
  11.06
  Rules by Trustee and Agents

  	
   

  	
  63

  	
   

  
	
   

  	
   

  	
  11.07 Legal
  Holidays

  	
   

  	
  63

  	
   

  
	
   

  	
   

  	
  11.08 Duplicate
  Originals

  	
   

  	
  63

  	
   

  
	
   

  	
   

  	
  11.09 Governing
  Law

  	
   

  	
  64

  	
   

  
	
   

  	
   

  	
  11.10 No Adverse
  Interpretation of Other Agreements

  	
   

  	
  64

  	
   

  
	
   

  	
   

  	
  11.11 Successors

  	
   

  	
  64

  	
   

  
	
   

  	
   

  	
  11.12
  Separability

  	
   

  	
  64

  	
   

  
	
   

  	
   

  	
  11.13 Table of
  Contents, Headings, etc.

  	
   

  	
  64

  	
   

  
	
   

  	
   

  	
  11.14 Calculations
  in Respect of the Securities

  	
   

  	
  64

  	
   

  
	
   

  	
   

  	
  11.15 No
  Personal Liability of Directors, Officers, Employees or Stockholders

  	
   

  	
  64

  	
   

  
	
   

  	
   

  	
  11.16 Force Majeure

  	
   

  	
  65

  	
   

  

 

 iii
 

 

 

Exhibit A                —            Form of Global Security

Exhibit B-1A          —            Form of
Private Placement Legend (Securities)

Exhibit B-1B          —            Form of
Private Placement Legend (Common Stock)

Exhibit B-2             —            Form of
Legend for Global Security

Exhibit C                —            Form of Notice of Transfer Pursuant to Registration
Statement

 

 iv

 

 

INDENTURE,
dated as of June 28, 2006, between MedImmune, Inc., a Delaware
corporation (the “Company”), and
The Bank of New York, a New York banking corporation, as trustee (the “Trustee”).

Each party agrees as
follows for the benefit of the other party and for the equal and ratable
benefit of the Holders of the Company’s 1.625% Convertible Senior Notes due
2013 (the “Securities”).

I.     DEFINITIONS AND INCORPORATION BY REFERENCE

1.01         DEFINITIONS.

The term “additional interest” has the meaning ascribed to it in the
Registration Rights Agreement.

“Affiliate”
means, with respect to a specified person, any person directly or indirectly
controlling or controlled by or under direct or indirect common control with
such specified person. For this purpose, “control” shall mean the power to
direct the management and policies of a person through the ownership of
securities, by contract or otherwise.

“Asset Sale
Make-Whole Fundamental Change” means a sale, transfer, lease,
conveyance or other disposition (other than a Permitted Transfer) of all or
substantially all of the property or assets of the Company to any “person” or “group”
(as such terms are used in Sections 13(d) and 14(d) of the Exchange
Act), including any group acting for the purpose of acquiring, holding, voting
or disposing of securities within the meaning of Rule 13d-5(b)(1) under
the Exchange Act.

“Bid
Solicitation Agent” means a
Company-appointed agent that performs calculations as set forth in Section 10.01.

“Board of
Directors” means the Board of Directors of the Company or any
committee thereof authorized to act for it hereunder.

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

“Capital
Stock” of any Person means any and all shares, interests,
participations or other equivalents (however designated) of capital stock of
such Person and all warrants or options to acquire such capital stock.

“Closing Sale
Price” on any date means the price of a share of Common Stock on
such date, determined (i) on the basis of the closing per share sale price
(or if no closing per share sale price is reported, the average of the bid and
ask prices or, if more than one in either case, the average of the average bid
and the average ask prices) on such date on the U.S. principal national or
regional securities exchange on which the Common Stock is listed; or (ii) if
the Common Stock is not listed on a U.S. national or regional securities
exchange, as reported by Nasdaq;

 1
 

 

or (iii) if not so
reported, as reported by Pink Sheets LLC or a similar organization; provided, however, that
in the absence of any such report or quotation, the Closing Sale Price shall be
deemed to be such price as the Company shall reasonably determine as most
accurately reflecting the price that a fully informed buyer, acting on his own
accord, would pay to a fully informed seller, acting on his own accord in an
arms-length transaction, for a share of Common Stock.

“Common Stock”
means the common stock, $0.01 par value per share, of the Company, or such
other Capital Stock of the Company into which the Company’s common stock is
reclassified or changed.

“Common Stock
Change Make-Whole Fundamental Change” means any transaction or
series of related transactions (other than a Listed Stock Business
Combination), in connection with which (whether by means of an exchange offer,
liquidation, tender offer, consolidation, merger, combination,
reclassification, recapitalization, asset sale, lease of assets or otherwise)
the Common Stock is exchanged for, converted into, acquired for or constitutes
solely the right to receive other securities, other property, assets or cash.

“Company”
means the party named as such above until a successor replaces it pursuant to
the applicable provision hereof and thereafter means the successor. The
foregoing sentence shall likewise apply to any such successor or subsequent
successor.

“Company
Order” or “Company Request”
means a written request or order signed on behalf of the Company by its
Chairman of the Board, its Chief Executive Officer, its President, its Chief
Operating Officer, its Chief Financial Officer or any Vice President and by its
Treasurer or an Assistant Treasurer or its Secretary or an Assistant Secretary,
and delivered to the Trustee.

“Conversion
Price” means, as of any date of
determination, the dollar amount derived by dividing one thousand dollars
($1,000) by the Conversion Rate in effect on such date.

“Conversion
Rate” shall initially be 29.9679 shares
of Common Stock per $1,000 principal amount of Securities, subject to
adjustment as provided in Article X.

“Corporate
Trust Office of the Trustee” means the principal office of the
Trustee at which at any time its corporate trust business shall be
administered, which office as of the date hereof is located at 101 Barclay
Street, Floor 8 West, New York, New York 10286, Attention: Corporate Trust
Administration, or such other address as the Trustee may designate from time to
time by notice to the Holders and the Company, or the principal corporate trust
office of any successor Trustee (or such other address as such successor
Trustee may designate from time to time by notice to the Holders and the
Company).

“Default”
means any event which is, or after notice or passage of time or both would be,
an Event of Default.

“Depositary”
means The Depository Trust Company, its nominees and successors.

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

 2
 

 

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

“Indebtedness”
of a person means the principal of, premium, if any, and interest on, and all
other obligations in respect of (a) all indebtedness of such person for
borrowed money (including all indebtedness evidenced by notes, bonds,
debentures or other securities), (b) all obligations (other than trade
payables) incurred by such person in the acquisition (whether by way of
purchase, merger, consolidation or otherwise and whether by such person or
another person) of any business, real property or other assets, (c) all
reimbursement obligations of such person with respect to letters of credit,
bankers’ acceptances or similar facilities issued for the account of such
person, (d) all capital lease obligations of such person, (e) all net
obligations of such person under interest rate swap, currency exchange or
similar agreements of such person, (f) all obligations and other
liabilities, contingent or otherwise, under any lease or related document,
including a purchase agreement, conditional sale or other title retention
agreement, in connection with the lease of real property or improvements
thereon (or any personal property included as part of any such lease) which
provides that such person is contractually obligated to purchase or cause a
third party to purchase the leased property or pay an agreed-upon residual
value of the leased property, including such person’s obligations under such
lease or related document to purchase or cause a third party to purchase such
leased property or pay an agreed-upon residual value of the leased property to
the lessor, (g) guarantees by such person of indebtedness described in clauses (a) through (f) of another person, and (h) all
renewals, extensions, refundings, deferrals, restructurings, amendments and
modifications of any indebtedness, obligation, guarantee or liability of the
kind described in clauses (a) through
(g).

“Indenture”
means this Indenture as amended or supplemented from time to time.

“Initial
Purchasers” means UBS Securities LLC, Merrill Lynch, Pierce, Fenner &
Smith Incorporated, Lehman Brothers Inc. Banc of America Securities LLC,
Citigroup Global Markets Inc., Goldman, Sachs & Co. and Wachovia
Capital Markets, LLC.

“Issue Date”
means June 28, 2006.

“Make-Whole Fundamental Change” means an
Asset Sale Make-Whole Fundamental Change or a Common Stock Change Make-Whole
Fundamental Change that occurs prior to the Maturity Date.

“Market
Disruption Event” means (i) a failure by the primary United
States national securities exchange or market on which the Common Stock is
listed or admitted to trading to open for trading during its regular trading
session; or (ii) the occurrence or existence, prior to 1:00 p.m. on
any day during which trading in the Common Stock generally occurs on the
primary U.S. national securities exchange or market on which the Common Stock
is listed or admitted to trading, for an aggregate of at least thirty (30)
minutes, of any suspension or limitation imposed on trading (by reason of
movements in price exceeding limits permitted by the stock exchange or
otherwise) in the Common Stock or in any options, contracts or future contracts
relating to the Common Stock.

“Maturity
Date” means July 15, 2013.

 3
 

 

“Offering
Memorandum” means the final Offering Memorandum of the Company,
dated June 22, 2006, relating to the Securities and the Company’s 1.375%
Convertible Senior Notes due 2011.

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

“Officer’s
Certificate” means a certificate signed by one Officer of the
Company.

“Opinion of
Counsel” means a written opinion from legal counsel who may be an employee
of or counsel for the Company, or other counsel reasonably acceptable to the
Trustee.

“Option”
means the Initial Purchasers’ option to acquire up to $75,000,000 aggregate
principal amount of additional Securities (“Additional
Securities”) as provided for in the Purchase Agreement.

“Permitted
Transfer” shall mean any transfer, whether in a single transaction
or series of related transactions, of all or substantially all of the Company’s
property or assets to one or more of its Subsidiaries, so long as at and after
such transaction or series of transactions, such Subsidiary shall guarantee, or
each of such Subsidiaries shall jointly and severally guarantee, as the case
may be, in each case on a senior unsecured basis, the Company’s obligations
under the Securities.

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

“Purchase
Agreement” means the Purchase Agreement dated June 22, 2006
among the Company and the Initial Purchasers.

“Purchase
Notice” means a Purchase Notice in the form set forth in the
Securities.

“QIB”
means a “qualified institutional buyer” within the meaning of Rule 144A
under the Securities Act.

“Registration
Rights Agreement” means the Registration Rights Agreement dated as
of the date hereof among the Company and the Initial Purchasers.

“Responsible
Officer” shall mean, when used with respect to the Trustee, any
officer within the corporate trust department of the Trustee, including any
vice president, assistant vice president, assistant secretary, assistant
treasurer, trust officer or any other officer of the Trustee who customarily
performs functions similar to those performed by the Persons who at the time
shall be such officers, respectively, or to whom any corporate trust matter is
referred because of such person’s knowledge of and familiarity with the
particular subject and who shall have direct responsibility for the
administration of this Indenture.

 4
 

 

“Restricted
Security” means a Security that constitutes a “restricted security”
within the meaning of Rule 144(a)(3) under the Securities Act; provided, however, that
the Trustee shall be entitled to request and conclusively rely on an Opinion of
Counsel with respect to whether any Security constitutes a Restricted Security.

“Rights
Agreement” means that certain Amended and Restated Rights Agreement
between the Company and American Stock Transfer & Trust Company, dated
October 31, 1998, as the same may be amended, supplemented or superseded.

“Rule 144A” means Rule 144A under the Securities Act.

“SEC”
means the Securities and Exchange Commission.

“Securities”
means the 1.625% Convertible Senior Notes due 2013 issued by the Company
pursuant to this Indenture.

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

“Securities
Agent” means any Registrar, Paying Agent, Conversion Agent, Bid
Solicitation Agent or co-Registrar or co-agent.

“Significant
Subsidiary” with respect to any person means any “subsidiary” (as
defined in Rule 1-02(x) of Regulation S-X under the Securities
Act) of such person that constitutes a “significant subsidiary” within the
meaning of Rule 1-02(w) of Regulation S-X under the Securities
Act.

“Subsidiary”
means (i) a corporation a majority of whose Capital Stock with voting
power, under ordinary circumstances, to elect directors is at the time,
directly or indirectly, owned by the Company, by one or more subsidiaries of
the Company or by the Company and one or more of its subsidiaries or (ii) any
other person (other than a corporation) in which the Company, one or more of
its subsidiaries, or the Company and one or more of its subsidiaries, directly
or indirectly, at the date of determination thereof, own at least a majority
ownership interest.

“TIA”
means the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) as
amended and in effect from time to time.

“Trading Day”
means any day during which: (i) trading in the Common Stock generally
occurs on the primary United States national securities exchange or market on
which the Common Stock is listed or admitted to trading; and (ii) there is
no Market Disruption Event.

“Trading Price”
means, on any day, the average of the secondary market bid quotations for the
Securities obtained by the Bid Solicitation Agent for five million dollars
($5,000,000) principal amount of Securities at approximately 4:00 p.m.,
New York City time, on such day, from three (3) independent, nationally
recognized securities dealers selected by the Company; provided, that
if the Bid Solicitation Agent can reasonably obtain only two (2) such
bids, then the average of such two (2) bids shall instead be used; provided further, that if the Bid Solicitation

 5
 

 

Agent can reasonably obtain only one (1) such
bid, then such bid shall instead be used; provided further,
that if, on a given date, the Bid Solicitation Agent cannot reasonably obtain
at least one (1) such bid, or if, in the reasonable, good faith judgment
of the Company, the bid quotation or
quotations that the Bid Solicitation Agent has obtained are not indicative of
the secondary market value of the Securities, then, in each case, the Trading
Price per $1,000 principal amount of Securities on such day shall be deemed to
be equal to 97% of the product of (I) the Conversion Rate in effect on
such day and (II) the Closing Sale Price on such day.

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

“Voting Stock”
of any Person means the total outstanding voting power of all classes of the
Capital Stock of such Person entitled to vote generally in the election of
directors of such Person.

1.02         OTHER DEFINITIONS.

	
  Term

  	
   

  	
   

  	
   

  	
  Defined in Section

  	
   

  
	
  “Additional
  Interest Notice”

  	
   

  	
  4.09

  	
   

  
	
  “Additional
  Securities”

  	
   

  	
  1.01

  	
   

  
	
  “Aggregate
  Amount”

  	
   

  	
  10.05

  	
   

  
	
  “Applicable
  Price”

  	
   

  	
  10.14

  	
   

  
	
  “Bankruptcy
  Law”

  	
   

  	
  6.01

  	
   

  
	
  “BCF
  Adjustment Cap”

  	
   

  	
  10.06

  	
   

  
	
  “BCF
  Make-Whole Cap”

  	
   

  	
  10.14

  	
   

  
	
  “Business
  Day”

  	
   

  	
  11.07

  	
   

  
	
  “Cash Settlement Averaging Period”

  	
   

  	
  10.02

  	
   

  
	
  “Change
  in Control”

  	
   

  	
  3.02

  	
   

  
	
  “Collective
  Election”

  	
   

  	
  10.11

  	
   

  
	
  “Common
  Stock Private Placement Legend”

  	
   

  	
  2.17

  	
   

  
	
  “Conversion
  Agent”

  	
   

  	
  2.03

  	
   

  
	
  “Conversion
  Date”

  	
   

  	
  10.02

  	
   

  
	
  “Conversion
  Value”

  	
   

  	
  10.01

  	
   

  
	
  “Custodian”

  	
   

  	
  6.01

  	
   

  
	
  “Daily Conversion Value”

  	
   

  	
  10.02

  	
   

  
	
  “Daily Net Shares”

  	
   

  	
  10.02

  	
   

  
	
  “Daily Principal Return”

  	
   

  	
  10.02

  	
   

  
	
  “Effective
  Date”

  	
   

  	
  10.14

  	
   

  
	
  “Event
  of Default”

  	
   

  	
  6.01

  	
   

  
	
  “Ex
  Date”

  	
   

  	
  10.05

  	
   

  
	
  “Expiration
  Date”

  	
   

  	
  10.05

  	
   

  
	
  “Expiration
  Time”

  	
   

  	
  10.05

  	
   

  
	
  “Fundamental
  Change”

  	
   

  	
  3.02

  	
   

  
	
  “Fundamental
  Change Notice”

  	
   

  	
  3.02

  	
   

  
	
  “Fundamental
  Change Repurchase Date”

  	
   

  	
  3.02

  	
   

  
	
  “Fundamental
  Change Repurchase Price”

  	
   

  	
  3.02

  	
   

  

 6
 

 

 

	
  “Fundamental Change Repurchase Right”

  	
   

  	
  3.02

  	
   

  
	
  “Global
  Security”

  	
   

  	
  2.01

  	
   

  
	
  “Legal
  Holiday”

  	
   

  	
  11.07

  	
   

  
	
  “Listed
  Stock Business Combination”

  	
   

  	
  3.02

  	
   

  
	
  “Make-Whole
  Applicable Increase”

  	
   

  	
  10.14

  	
   

  
	
  “Make-Whole
  Conversion Period”

  	
   

  	
  10.14

  	
   

  
	
  “Make-Whole
  Consideration”

  	
   

  	
  10.14

  	
   

  
	
  “Net
  Shares”

  	
   

  	
  10.02

  	
   

  
	
  “Notice
  of Default”

  	
   

  	
  6.01

  	
   

  
	
  “Note
  Measurement Period”

  	
   

  	
  10.01

  	
   

  
	
  “Participants”

  	
   

  	
  2.15

  	
   

  
	
  “Paying
  Agent”

  	
   

  	
  2.03

  	
   

  
	
  “Physical
  Securities”

  	
   

  	
  2.01

  	
   

  
	
  “Principal
  Return”

  	
   

  	
  10.02

  	
   

  
	
  “Purchase
  at Holder’s Option”

  	
   

  	
  3.01

  	
   

  
	
  “Purchased
  Shares”

  	
   

  	
  10.05

  	
   

  
	
  “record
  date”

  	
   

  	
  10.05

  	
   

  
	
  “Reference
  Property”

  	
   

  	
  10.11

  	
   

  
	
  “Registrar”

  	
   

  	
  2.03

  	
   

  
	
  “Relevant
  Date”

  	
   

  	
  10.02

  	
   

  
	
  “Repurchase
  Upon Fundamental Change”

  	
   

  	
  3.02

  	
   

  
	
  “Resale
  Restriction Termination Date”

  	
   

  	
  2.17

  	
   

  
	
  “Securities
  Private Placement Legend”

  	
   

  	
  2.17

  	
   

  
	
  “Spin-Off”

  	
   

  	
  10.05

  	
   

  
	
  “Termination
  of Trading”

  	
   

  	
  3.02

  	
   

  
	
  “Trading
  Price Condition”

  	
   

  	
  10.01

  	
   

  
	
  “Trigger
  Event”

  	
   

  	
  10.05

  	
   

  
	
  “Underlying
  Shares”

  	
   

  	
  10.05

  	
   

  
	
  “Volume-Weighted
  Average Price”

  	
   

  	
  10.02

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

1.03         INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT.

Whenever this Indenture
refers to a provision of the TIA, the provision is incorporated by reference in
and made a part of this Indenture.

The following TIA terms
used in this Indenture have the following meanings:

“Commission”
means the SEC;

“indenture securities” means the
Securities;

“indenture security holder” means a
Securityholder or a Holder;

“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 successor.

 7
 

 

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

1.04         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 U.S. generally accepted accounting principles in effect from
time to time;

(iii)       “or”
is not exclusive;

(iv)       “including”
means “including without limitation”;

(v)        words
in the singular include the plural and in the plural include the singular;

(vi)       provisions
apply to successive events and transactions;

(vii)      the
term “interest” includes
additional interest, unless the context otherwise requires or the terms of the
Registration Rights Agreement provide otherwise;

(viii)     “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 of this
Indenture; and

(ix)       references
to currency shall mean the lawful currency of the United States of America,
unless the context requires otherwise.

II.            THE
SECURITIES

2.01         FORM AND DATING.

The Securities and the
Trustee’s certificate of authentication shall be substantially in the form set
forth in Exhibit A, which is incorporated
in and forms a part of this Indenture. The Securities may have notations,
legends or endorsements required by law, stock exchange rule or usage, provided such notations, legends or endorsements are in a
form reasonably acceptable to the Company. Each Security shall be dated the
date of its authentication.

Securities offered and
sold in reliance on Rule 144A shall be issued initially in the form of one
or more Global Securities, substantially in the form set forth in Exhibit A (the “Global Security”),
deposited with the Trustee, as custodian for the Depositary, registered in the
name of the Depositary or a nominee thereof, duly executed by the Company and
authenticated by the

 8
 

 

Trustee as hereinafter
provided and bearing the legends set forth in Exhibits
B-1A and B-2.
The aggregate principal amount of the Global Security may from time to time be
increased or decreased by adjustments made on the records of the Trustee, as
custodian for the Depositary, as hereinafter provided; provided,
that in no event shall the aggregate principal amount of the Global Security or
Securities exceed $500,000,000 (or $575,000,000 if the Initial Purchasers elect
to purchase all of the Additional Securities pursuant to the Option).

Securities issued in
exchange for interests in a Global Security pursuant to Section 2.15
may be issued in the form of permanent certificated Securities in
registered form in substantially the form set forth in Exhibit A
(the “Physical Securities”) and, if
applicable, bearing any legends required by Section 2.17.

2.02         EXECUTION AND AUTHENTICATION.

One duly authorized
Officer shall sign the Securities for the Company by manual or facsimile signature.

A Security’s validity
shall not be affected by the failure of an Officer whose signature is on such
Security to hold, at the time the Security is authenticated, the same office at
the Company.

A Security shall not be valid
until duly authenticated by the manual or facsimile signature of the Trustee. The
signature shall be conclusive evidence that the Security has been authenticated
under this Indenture.

Upon a written order of
the Company signed by one Officer of the Company, the Trustee shall
authenticate Securities for original issue in the aggregate principal amount of
$500,000,000 and such additional principal amount, if any, as shall be
determined pursuant to the next sentence of this Section 2.02.
Upon receipt by the Trustee of an Officer’s Certificate stating that the
Initial Purchasers have elected to purchase from the Company a specified
principal amount of Additional Securities, not to exceed $75,000,000, pursuant
to the Option, the Trustee shall authenticate and deliver such specified
principal amount of Additional Securities to or upon the written order of the
Company signed as provided in the immediately preceding sentence. Such Officer’s
Certificate must be received by the Trustee not later than the proposed date
for delivering of such Additional Securities. The aggregate principal amount of
Securities outstanding at any time may not exceed $500,000,000 except as
provided in this Section 2.02.

Upon a written order of
the Company signed by two (2) Officers or by an Officer and an Assistant
Treasurer of the Company, the Trustee shall authenticate Securities not bearing
the Securities Private Placement Legend to be issued to the transferee when
sold pursuant to an effective registration statement under the Securities Act
as set forth in Section 2.16(B).

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 authenticating agent. An authenticating agent so
appointed has the same rights as a Securities Agent to deal with the Company
and its Affiliates.

 9

 

 

If a written order of the
Company pursuant to this Section 2.02
has been, or simultaneously is, delivered, any instructions by the Company to
the Trustee with respect to endorsement, delivery or redelivery of a Security
issued in global form shall be in writing but need not comply with Section 11.04 hereof and need not be accompanied by an
Opinion of Counsel.

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

2.03         REGISTRAR, PAYING AGENT AND CONVERSION AGENT.

The Company shall
maintain, or shall cause to be maintained, (i) an office or agency in the
Borough of Manhattan, The City of New York, where Securities may be presented
for registration of transfer or for exchange (“Registrar”),
(ii) an office or agency in the Borough of Manhattan, The City of New
York, where Securities may be presented for payment (“Paying Agent”)
and (iii) an office or agency in the Borough of Manhattan, The City of New
York, where Securities may be presented for conversion (“Conversion
Agent”). The Registrar shall keep a register of the Securities and
of their transfer and exchange. The Company may appoint or change one or more
co-Registrars, one or more additional paying agents and one or more additional
conversion agents without notice and may act in any such capacity on its own
behalf. The term “Registrar”
includes any co-Registrar; the term “Paying Agent”
includes any additional paying agent; and the term “Conversion
Agent” includes any additional conversion agent.

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 or Conversion Agent, the Trustee shall act
as such.

The Company initially
appoints the Trustee as Paying Agent, Bid Solicitation Agent, Registrar and
Conversion Agent.

2.04         PAYING AGENT TO HOLD MONEY IN TRUST.

Each Paying Agent shall
hold in trust for the benefit of the Securityholders or the Trustee all moneys
held by the Paying Agent for the payment of the Securities, and shall notify
the Trustee of any Default by the Company in making any such payment. While any
such Default continues, the Trustee may require a Paying Agent to pay all money
held by it to the Trustee. The Company at any time may require a Paying Agent
to pay all money held by it to the Trustee and account for any funds so paid by
it. Upon payment over to the Trustee, the Paying Agent shall have no further
liability for such money. If the Company acts as Paying Agent, it shall
segregate and hold as a separate trust fund all money held by it as Paying
Agent.

2.05         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

 10
 

 

Registrar, the Company
shall furnish, or shall cause to be furnished, to the Trustee on or before each
interest payment date and at such other times as the Trustee may request in
writing a list, in such form and as of such date as the Trustee may reasonably
require, of the names and addresses of Securityholders appearing in the
security register of the Registrar.

2.06         TRANSFER AND EXCHANGE.

Subject to Sections 2.15 and 2.16 hereof,
where Securities are presented to the Registrar with a request to register
their transfer or to exchange them for an equal principal amount of Securities
of other authorized denominations, the Registrar shall register the transfer or
make the exchange if its requirements for such transaction are met. To permit
registrations of transfer and exchanges, the Trustee shall authenticate
Securities at the Registrar’s request or upon the Trustee’s receipt of a
Company Order therefor. The Company or the Trustee, as the case may be, shall
not be required to register the transfer of or exchange any Security for which
a Purchase Notice has been delivered, and not withdrawn, in accordance with
this Indenture, except the unrepurchased portion of Securities being
repurchased in part.

No service charge shall
be made for any transfer, exchange or conversion of Securities, but the Company
may require payment of a sum sufficient to cover any transfer tax or similar
governmental charge that may be imposed in connection with any transfer,
exchange or conversion of Securities, other than exchanges pursuant to Sections  2.10, 9.05 or 10.02, or Article III,
not involving any transfer.

2.07         REPLACEMENT SECURITIES.

If the Holder of a
Security claims that the Security has been mutilated, lost, destroyed or
wrongfully taken, the Company shall issue and the Trustee shall authenticate a
replacement Security upon surrender to the Trustee of the mutilated Security,
or upon delivery to the Trustee of evidence of the loss, destruction or theft
of the Security satisfactory to the Trustee and the Company. In the case of a
lost, destroyed or wrongfully taken Security, if required by the Trustee or the
Company, indemnity must be provided by the Holder that is reasonably
satisfactory to the Trustee and the Company to indemnify and hold harmless the
Company, the Trustee or any Securities Agent from any loss which any of them
may suffer if such Security is replaced. The Trustee and the Company may charge
such Holder for their expenses in replacing a Security.

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

Every replacement
Security is an additional obligation of the Company only as provided in Section 2.08.

2.08         OUTSTANDING SECURITIES.

Securities outstanding at
any time are all the Securities authenticated by the Trustee except for those
converted, those cancelled by it, those delivered to it for cancellation and
those described in this Section 2.08
as not outstanding. Except to the extent provided in Section 2.09,

 11
 

 

a Security does not cease
to be outstanding because the Company or one of its Subsidiaries or Affiliates
holds the Security.

If a Security is replaced
pursuant to Section 2.07, it ceases to be
outstanding unless the Trustee receives proof satisfactory to it, or a court
holds, that the replaced Security is held by a protected purchaser.

If the Paying Agent
(other than the Company) holds on a Fundamental Change Repurchase Date or
Maturity Date, money sufficient to pay the aggregate Fundamental Change
Repurchase Price or principal amount, as the case may be, with respect to all
Securities to be purchased or paid upon Repurchase Upon Fundamental Change or
on the Maturity Date, as the case may be, in each case plus, if applicable,
accrued and unpaid interest, if any, payable as herein provided upon Repurchase
Upon Fundamental Change or on the Maturity Date, then (unless there shall be a
Default in the payment of such aggregate Fundamental Change Repurchase Price or
principal amount, or of such accrued and unpaid interest), except as otherwise
provided herein, on and after such date such Securities shall be deemed to be
no longer outstanding, interest on such Securities shall cease to accrue, and
such Securities shall be deemed paid whether or not such Securities are
delivered to the Paying Agent. Thereafter, all rights of the Holders of such
Securities shall terminate with respect to such Securities, other than the
right to receive the Fundamental Change Repurchase Price or principal amount,
as the case may be, plus, if applicable, such accrued and unpaid interest, in
accordance with this Indenture.

If a Security is
converted in accordance with Article X,
then, from and after the time of such conversion on the Conversion Date, such
Security shall cease to be outstanding, and interest, if any, shall cease to
accrue on such Security unless there shall be a Default in the payment or
delivery of the consideration payable hereunder upon such conversion.

2.09         SECURITIES HELD BY THE COMPANY OR AN AFFILIATE.

In determining whether
the Holders of the required aggregate principal amount of Securities have
concurred in any direction, waiver or consent, Securities owned by the Company
or any of its Subsidiaries or Affiliates shall be considered as though not
outstanding, except that, for the purposes of determining whether the Trustee
shall be protected in relying on any such direction, waiver or consent, only
Securities which a Responsible Officer of the Trustee actually knows are so
owned shall be so disregarded. Securities so owned which have been pledged in
good faith may be considered to be outstanding for purposes of this Section 2.09 if the pledgee establishes, to the
satisfaction of the Trustee, the pledgee’s right so to concur with respect to
such Securities and that the pledgee is not, and is not acting at the direction
or on behalf of, the Company, any other obligor on the Securities, an Affiliate
of the Company or an Affiliate of any such other obligor. In the event of a
dispute as to whether the pledgee has established the foregoing, the Trustee
may conclusively rely on an Officer’s Certificate.

2.10         TEMPORARY SECURITIES.

Until definitive
Securities are ready for delivery, the Company may prepare and the Trustee
shall, upon receipt of a Company Order therefor, authenticate temporary
Securities. Temporary Securities shall be substantially in the form of
definitive Securities but may have

 12
 

 

variations that the
Company considers appropriate for temporary Securities. Without unreasonable
delay, the Company shall prepare and the Trustee, upon receipt of a Company
Order therefor, shall authenticate definitive Securities in exchange for
temporary Securities. Until so exchanged, each temporary Security shall in all
respects be entitled to the same benefits under this Indenture as definitive
Securities, and such temporary Security shall be exchangeable for definitive
Securities in accordance with the terms of this Indenture.

2.11         CANCELLATION.

The Company at any time
may deliver Securities to the Trustee for cancellation. The Registrar, Paying
Agent and Conversion Agent shall forward to the Trustee any Securities surrendered
to them for transfer, exchange, payment or conversion. The Trustee shall promptly
cancel all Securities surrendered for transfer, exchange, payment, conversion
or cancellation in accordance with its customary procedures. The Company may
not issue new Securities to replace Securities that it has paid or delivered to
the Trustee for cancellation or that any Securityholder has converted pursuant
to Article X. All cancelled
Securities held by the Trustee shall be disposed of in accordance with its
customary procedure for the disposal of cancelled securities, and certification
of such disposal shall be delivered by the Trustee to the Company unless the
Company shall, by a Company Order, direct that cancelled Securities be returned
to it.

2.12         DEFAULTED INTEREST.

If and to the extent the
Company defaults in a payment of interest on the Securities, the Company shall
pay in cash the defaulted interest in any lawful manner plus, to the extent not
prohibited by applicable statute or case law, interest on such defaulted
interest at the rate provided in the Securities. The Company may pay the
defaulted interest (plus interest on such defaulted interest) to the persons
who are Securityholders on a subsequent special record date. The Company shall
fix such record date and payment date. At least fifteen (15) calendar days
before the record date, the Company shall mail to Securityholders a notice that
states the record date, payment date and amount of interest to be paid. Upon
the due payment in full, interest shall no longer accrue on such defaulted
interest pursuant to this Section 2.12.

2.13         CUSIP NUMBERS.

The Company in issuing
the Securities may use one or more “CUSIP” numbers, and, if so, the Trustee
shall use the CUSIP numbers in notices as a convenience to Holders; provided, however, that
no representation is hereby deemed to be made by the Trustee as to the
correctness or accuracy of the CUSIP numbers printed on the notice or on the
Securities; provided further, that reliance may be
placed only on the other identification numbers printed on the Securities, and
the effectiveness of any such notice shall not be affected by any defect in, or
omission of, such CUSIP numbers. The Company shall promptly notify the Trustee
of any change in the CUSIP numbers.

2.14         DEPOSIT OF MONEYS.

Prior to 11:00 A.M.,
New York City time, on each interest payment date, Maturity Date or Fundamental
Change Repurchase Date, the Company shall deposit with a Paying Agent (or, if
the Company is acting as its own Paying Agent, segregate and hold in trust in
accordance with

 13
 

 

Section 2.04)
money, in funds immediately available on such date, sufficient to make cash
payments, if any, due on such interest payment date, Maturity Date or
Fundamental Change Repurchase Date, as the case may be, in a timely manner
which permits the Paying Agent to remit payment to the Holders on such interest
payment date, Maturity Date or Fundamental Change Repurchase Date, as the case
may be.

2.15         BOOK-ENTRY PROVISIONS FOR
GLOBAL SECURITIES.

(A)          The
Global Securities initially shall (i) be registered in the name of the
Depositary or the nominee of the Depositary, (ii) be delivered to the
Trustee as custodian for the Depositary and (iii) bear legends as set
forth in Section 2.17.

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

(B)           Transfers
of Global Securities shall be limited to transfers in whole, but not in part,
to the Depositary, its successors or their respective nominees. In addition,
Physical Securities shall be transferred to all beneficial owners, as
identified by the Depositary, in exchange for their beneficial interests in
Global Securities only if (i) the Depositary notifies the Company that the
Depositary is unwilling or unable to continue as depositary for any Global
Security (or the Depositary ceases to be a “clearing agency” registered under Section 17A
of the Exchange Act) and a successor Depositary is not appointed by the Company
within ninety (90) days of such notice or cessation or (ii) an Event of
Default has occurred and is continuing and the Registrar has received a written
request from the Depositary to issue Physical Securities.

(C)           In
connection with the transfer of a Global Security in its entirety to beneficial
owners pursuant to Section 2.15(B),
such Global Security shall be deemed to be surrendered to the Trustee for
cancellation, and the Company shall execute, and the Trustee shall upon written
instructions from the Company authenticate and deliver, to each beneficial
owner identified by the Depositary in exchange for its beneficial interest in
such Global Security, an equal aggregate principal amount of Physical
Securities of authorized denominations.

(D)          Any
Physical Security constituting a Restricted Security delivered in exchange for
an interest in a Global Security pursuant to Section 2.15(B) shall,
except as otherwise provided by Section 2.16,
bear the Securities Private Placement Legend.

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

 14
 

 

(F)           The
Trustee shall have no obligation or duty to monitor, determine or inquire as to
compliance with any restrictions on the transfer of any interest in any
Securities imposed under this Indenture or under applicable law (including any
transfers between or among participants of the Depositary or 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.

(G)           Neither
the Trustee nor any Securities Agent shall have any responsibility for any
actions taken or not taken by the Depositary.

2.16         SPECIAL TRANSFER PROVISIONS.

(A)          Restrictions on Transfer and Exchange of Global
Securities. Notwithstanding any other provisions of this Indenture,
but except as provided in Section 2.15(B),
a Global 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.

(B)           Private Placement Legend. Upon the
transfer, exchange or replacement of Securities not bearing the Securities
Private Placement Legend, the Registrar or co-Registrar shall deliver Securities
that do not bear the Securities Private Placement Legend. Upon the transfer,
exchange or replacement of Securities bearing the Securities Private Placement
Legend, the Registrar or co-Registrar shall deliver only Securities that bear
the Securities Private Placement Legend unless (i) the requested transfer
is after the Resale Restriction Termination Date, (ii) there is delivered
to the Trustee and the Company an opinion of counsel reasonably satisfactory to
the Company and addressed to the Company to the effect that neither such legend
nor the related restrictions on transfer are required in order to maintain
compliance with the provisions of the Securities Act or (iii) such
Security has been sold pursuant to an effective registration statement under
the Securities Act and the Holder selling such Securities has delivered to the
Registrar or co-Registrar a notice in the form of Exhibit C hereto. Upon the effectiveness, under the
Securities Act, of a “Shelf Registration Statement” (as defined in the
Registration Rights Agreement), the Company shall deliver to the Trustee a
notice of effectiveness, a Global Security or Global Securities, which do not
bear the Securities Private Placement Legend, an authentication order in
accordance with Section 2.02,
and, if required by the Depositary, the Company shall deliver to the Depositary
a letter of representations in a form reasonably acceptable to the Depositary. Upon
the effectiveness of any post-effective amendment to a “Shelf Registration
Statement” (as defined in the Registration Rights Agreement) and upon the
effectiveness, under the Securities Act, of any “Subsequent Shelf Registration
Statement” (as defined in the Registration Rights Agreement), the Company shall
deliver to the Trustee a notice of effectiveness and an Opinion of Counsel in
the form of Exhibit D hereto.
Upon any sale, pursuant to a Shelf Registration Statement, of a beneficial
interest in a Global Security that theretofore constituted a Restricted
Security and delivery of appropriate evidence thereof to the Trustee, and upon
any sale or transfer of a beneficial interest in connection with which the
Securities Private Placement Legend will be removed in accordance with this
Indenture, the Trustee shall increase the principal amount of the Global
Security that

 15
 

 

does not constitute a Restricted Security by the principal amount of
such sale or transfer and likewise reduce the principal amount of the Global
Security that does constitute a Restricted Security.

(C)           General. By its acceptance of any Security
or share of Common Stock bearing the Security Private Placement Legend or the
Common Stock Private Placement Legend, each holder thereof acknowledges the
restrictions on transfer of such security set forth in this Indenture and in
the Security Private Placement Legend or Common Stock Private Placement Legend,
as applicable, and agrees that it will transfer such security only as provided
in this Indenture and as permitted by applicable law.

The Registrar shall
retain copies of all letters, notices and other written communications received
pursuant to Section 2.15 or this Section 2.16. The Company shall have the right to inspect
and make copies of all such letters, notices or other written communications at
any reasonable time upon the giving of reasonable written notice to the
Registrar.

(D)          Transfers of Securities Held by Affiliates.
Any Securities or shares of Common Stock issued upon the conversion of
Securities that are purchased or owned by the Company or any Affiliate thereof
may not be resold by the Company or such Affiliate unless registered under the
Securities Act or resold pursuant to an exemption from the registration
requirements of the Securities Act in a transaction that results in such
Securities or shares of Common Stock, as the case may be, no longer being
Restricted Securities. For the avoidance of doubt, solely with respect to
Affiliates, the aforementioned sentence shall not constitute a covenant of the
Company under this Indenture.

2.17         RESTRICTIVE LEGENDS.

Each Global Security and
Physical Security that constitutes a Restricted Security shall bear the legend
(the “Security Private Placement Legend”) as
set forth in Exhibit B-1A on the
face thereof until the date that is two years after the last date of original
issuance of such notes, or such other period of time as permitted by Rule 144(k) under
the Securities Act or any successor provision thereto (such date, the “Resale Restriction Termination Date”). Each certificate
representing shares of Common Stock, if any, issued upon conversion of any
Security, shall, if such shares constitute Restricted Securities, shall bear
the legend (the “Common Stock Private Placement Legend”)
as set forth in Exhibit B-1B on the
face thereof until such shares no longer constitute “Restricted Securities.”

Each Global Security
shall also bear the legend as set forth in Exhibit B-2.

2.18         RANKING.

The indebtedness of the
Company arising under or in connection with this Indenture and every
outstanding Security issued under this Indenture from time to time constitutes
and will constitute a senior unsecured obligation of the Company, ranking
equally with other existing and future senior unsecured indebtedness of the
Company and ranking senior to any existing or future subordinated indebtedness
of the Company.

 16
 

 

III.           REDEMPTION
AND REPURCHASE

3.01         NO RIGHT OF REDEMPTION AT THE OPTION OF THE COMPANY.

Prior to the Maturity
Date, the Securities shall not be subject to redemption at the option of the
Company.

3.02         REPURCHASE AT OPTION OF HOLDER UPON A FUNDAMENTAL
CHANGE.

(A)          In the event any
Fundamental Change shall occur, each Holder of Securities shall have the right
(the “Fundamental Change Repurchase Right”),
at such Holder’s option, to require the Company to repurchase (a “Repurchase Upon Fundamental Change”) all of
such Holder’s Securities (or portions thereof that are integral multiples of
$1,000 in principal amount), on a date selected by the Company (the “Fundamental Change Repurchase Date”), which
Fundamental Change Repurchase Date shall be no later than thirty five (35)
days, nor earlier than twenty (20) days, after the date the Fundamental Change
Notice is mailed in accordance with Section 3.02(B),
at a price, payable in cash, equal to one hundred percent (100%) of the
principal amount of the Securities (or portions thereof) to be so repurchased
(the “Fundamental Change Repurchase Price”),
plus accrued and unpaid interest, if any, to, but excluding, the Fundamental
Change Repurchase Date, upon:

(i)      delivery to the Company (if it is acting
as its own Paying Agent), or to a Paying Agent designated by the Company for
such purpose in the Fundamental Change Notice, no later than the close of
business on the third (3rd) Business Day immediately preceding the Fundamental
Change Repurchase Date, of a Purchase Notice, in the form set forth in the
Securities or any other form of written notice substantially similar thereto,
in each case, duly completed and signed, with appropriate signature guarantee,
stating:

(a)           the certificate number(s) of the
Securities which the Holder will deliver to be repurchased, if such Securities
are in certificated form;

(b)           the principal amount of Securities to
be repurchased, which must be $1,000 or an integral multiple thereof; and

(c)           that such principal amount of
Securities are to be repurchased pursuant to the terms and conditions specified
in paragraph 7 of the Securities and in
this Indenture; and

(ii)     delivery to the Company (if it is acting as
its own Paying Agent), or to a Paying Agent designated by the Company for such
purpose in the Fundamental Change Notice, at any time after the delivery of
such Purchase Notice, of such Securities (together with all necessary
endorsements) with respect to which the Fundamental Change Repurchase Right is
being exercised;

provided, however, that if such Fundamental Change Repurchase Date is
after a record date for the payment of an installment of interest and on or
before the related interest payment date, then the accrued and unpaid interest,
if any, to, but excluding, such interest payment date will be paid

 17
 

 

on such interest payment
date to the Holder of record of such Securities at the close of business on
such record date (without any surrender of such Securities by such Holder), and
the Holder surrendering such Securities for repurchase will not be entitled to
any such accrued and unpaid interest unless such Holder was also the Holder of
record of such Securities at the close of business on such record date.

If such Securities
are held in book-entry form through the Depositary, the Purchase Notice shall
comply with applicable procedures of the Depositary.

Upon such delivery
of Securities to the Company (if it is acting as its own Paying Agent) or such
Paying Agent, such Holder shall be entitled to receive, upon request, from the
Company or such Paying Agent, as the case may be, a nontransferable receipt of
deposit evidencing such delivery.

Notwithstanding
anything herein to the contrary, any Holder that has delivered the Purchase
Notice contemplated by this Section 3.02(A) to
the Company (if it is acting as its own Paying Agent) or to a Paying Agent
designated by the Company for such purpose in the Fundamental Change Notice
shall have the right to withdraw such Purchase Notice by delivery, at any time
prior to the close of business on the Business Day immediately preceding the
Fundamental Change Repurchase Date, of a written notice of withdrawal to the
Company (if acting as its own Paying Agent) or the Paying Agent, which notice
shall contain the information specified in Section 3.02(B)(xi).

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

(B)           Within twenty (20)
Business Days after the occurrence of a Fundamental Change, the Company shall
mail, or cause to be mailed, to all Holders of the Securities at their
addresses shown in the register of the Registrar, and to beneficial owners as
required by applicable law, a notice (the “Fundamental
Change Notice”) of the occurrence of such Fundamental Change and the
Fundamental Change Repurchase Right arising as a result thereof. The Company
shall deliver a copy of the Fundamental Change Notice to the Trustee and shall
publicly release, through a reputable national newswire service, such
Fundamental Change Notice.

Each Fundamental Change
Notice shall state:

(i)         the
events causing the Fundamental Change;

(ii)        the
date of such Fundamental Change;

(iii)       the
Fundamental Change Repurchase Date;

(iv)       the
date by which the Fundamental Change Repurchase Right must be exercised;

(v)        the
Fundamental Change Repurchase Price plus accrued and unpaid interest, if any,
to, but excluding, the Fundamental Change Repurchase Date;

 18
 

 

(vi)       the
names and addresses of the Paying Agent and the Conversion Agent;

(vii)      a
description of the procedures which a Holder must follow to exercise the
Fundamental Change Repurchase Right;

(viii)     that,
in order to exercise the Fundamental Change Repurchase Right, the Securities
(together with all necessary endorsements) must be surrendered for payment of
the Fundamental Change Repurchase Price plus accrued and unpaid interest, if
any, payable as herein provided upon Repurchase Upon Fundamental Change;

(ix)       that
the Fundamental Change Repurchase Price, plus accrued and unpaid interest, if
any, to, but excluding, the Fundamental Change Repurchase Date, for any
Security as to which a Purchase Notice has been given and not withdrawn will be
paid as promptly as practicable, but in no event more than the third (3rd)
Business Day after the later of such Fundamental Change Repurchase Date and the
time of delivery of the Security (together with all necessary endorsements) as
described in clause (viii) above;
provided, however,
that if such Fundamental Change Repurchase Date is after a record date for the
payment of an installment of interest and on or before the related interest
payment date, then the accrued and unpaid interest, if any, to, but excluding,
such interest payment date will be paid on such interest payment date to the
Holder of record of such Security at the close of business on such record date
(without any surrender of such Securities by such Holder), and the Holder
surrendering such Security for repurchase will not be entitled to any such
accrued and unpaid interest unless such Holder was also the Holder of record of
such Security at the close of business on such record date;

(x)         that, except as otherwise provided
herein with respect to a Fundamental Change Repurchase Date that is after a
record date for the payment of an installment of interest and on or before the
related interest payment date, on and after such Fundamental Change Repurchase
Date (unless there shall be a Default in the payment of the consideration
payable as herein provided upon Repurchase Upon Fundamental Change), interest
on Securities subject to Repurchase Upon Fundamental Change will cease to
accrue, and all rights of the Holders of such Securities shall terminate, other
than the right to receive, in accordance herewith, the consideration payable as
herein provided upon Repurchase Upon Fundamental Change;

(xi)       that
a Holder will be entitled to withdraw its election in the Purchase Notice if
the Company (if acting as its own Paying Agent), or the Paying Agent receives,
prior to the close of business on the Business Day immediately preceding the
Fundamental Change Repurchase Date, or such longer period as may be required by
law, a letter or telegram, telex or facsimile transmission (receipt of which is
confirmed and promptly followed by a letter) setting forth (I) the name of
such Holder, (II) a statement that such Holder is withdrawing its election
to have Securities purchased by the Company on such Fundamental Change
Repurchase Date pursuant to a Repurchase Upon Fundamental Change, (III) the
certificate number(s) of such Securities to be so

 19
 

 

withdrawn, if such Securities are in certificated form, (IV) the
principal amount of the Securities of such Holder to be so withdrawn, which
amount must be $1,000 or an integral multiple thereof and (V) the
principal amount, if any, of the Securities of such Holder that remain subject
to the Purchase Notice delivered by such Holder in accordance with this Section 3.02, which amount must be
$1,000 or an integral multiple thereof;

(xii)      the
Conversion Rate and any adjustments to the Conversion Rate that will result
from such Fundamental Change;

(xiii)     that
Securities with respect to which a Purchase Notice is given by a Holder may be
converted pursuant to Article X
only if such Purchase Notice has been withdrawn in accordance with this Section 3.02 or if there shall be a
Default in the payment of the Fundamental Change Repurchase Price or in the
accrued and unpaid interest, if any, payable as herein provided upon Repurchase
Upon Fundamental Change; and

(xiv)     the
CUSIP number or numbers, as the case may be, of the Securities.

At the Company’s request,
upon prior notice reasonably acceptable to the Trustee, the Trustee shall mail
such Fundamental Change Notice in the Company’s name and at the Company’s
expense; provided, however, that the form and
content of such Fundamental Change Notice shall be prepared by the Company.

No failure of the Company
to give a Fundamental Change Notice shall limit any Holder’s right pursuant
hereto to exercise a Fundamental Change Repurchase Right.

(C)           Subject to the
provisions of this Section 3.02,
the Company shall pay, or cause to be paid, the Fundamental Change Repurchase
Price, plus accrued and unpaid interest, if any, to, but excluding, the
Fundamental Change Repurchase Date, with respect to each Security as to which
the Fundamental Change Repurchase Right shall have been exercised to the Holder
thereof as promptly as practicable, but in no event later than the third (3rd)
Business Day after the later of the Fundamental Change Repurchase Date and the
time such Security is surrendered to the Paying Agent; provided,
however, that if such Fundamental Change
Repurchase Date is after a record date for the payment of an installment of
interest and on or before the related interest payment date, then the accrued
and unpaid interest, if any, to, but excluding, such interest payment date will
be paid on such interest payment date to the Holder of record of such Security
at the close of business on such record date, and the Holder surrendering such
Security for repurchase will not be entitled to any such accrued and unpaid
interest unless such Holder was also the Holder of record of such Security at
the close of business on such record date.

(D)          Prior to 11:00 A.M.,
New York City time on a Fundamental Change Repurchase Date, the Company shall
deposit with a Paying Agent (or, if the Company is acting as its own Paying
Agent, segregate and hold in trust in accordance with Section 2.04) money, in funds
immediately available on the Fundamental Change Repurchase Date, sufficient to
pay the consideration payable as herein provided upon Repurchase Upon
Fundamental Change for all of the Securities that are to be repurchased by the
Company on such Fundamental Change

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Repurchase Date pursuant to a Repurchase Upon Fundamental Change. The
Paying Agent shall return to the Company, as soon as practicable, any money not
required for that purpose.

(E)           Once the Fundamental
Change Notice and the Purchase Notice have been duly given in accordance with
this Section 3.02, the
Securities to be repurchased pursuant to a Repurchase Upon Fundamental Change
shall, on the Fundamental Change Repurchase Date, become due and payable in
accordance herewith, and, on and after such date (unless there shall be a
Default in the payment of the consideration payable as herein provided upon
Repurchase Upon Fundamental Change), except as otherwise provided herein with
respect to a Fundamental Change Repurchase Date that is after a record date for
the payment of an installment of interest and on or before the related interest
payment date, such Securities shall cease to bear interest, and all rights of
the Holders of such Securities shall terminate, other than the right to
receive, in accordance herewith, such consideration.

(F)           Securities with
respect to which a Purchase Notice has been duly delivered in accordance with
this Section 3.02 may be
converted pursuant to Article X
only if such Purchase Notice has been withdrawn in accordance with this Section 3.02 or if there shall be a
Default in the payment of the consideration payable as herein provided upon
Repurchase Upon Fundamental Change.

(G)           If any Security
shall not be paid upon surrender thereof for Repurchase Upon Fundamental
Change, the principal of, and accrued and unpaid interest on, such Security
shall, until paid, bear interest, payable in cash, at the rate borne by such
Security on the principal amount of such Security, and such Security shall
continue to be convertible pursuant to Article X.

(H)          Any Security which is
to be submitted for Repurchase Upon Fundamental Change only in part shall be
delivered pursuant to this Section 3.02
(with, if the Company or the Trustee so requires, due endorsement by, or a
written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or its attorney duly authorized in
writing, with a medallion guarantee), and the Company shall execute, and the
Trustee shall authenticate and make available for delivery to the Holder of
such Security without service charge, a new Security or Securities, of any
authorized denomination as requested by such Holder, of the same tenor and in
aggregate principal amount equal to the portion of such Security not duly
submitted for Repurchase Upon Fundamental Change.

(I)            Notwithstanding
anything herein to the contrary, there shall be no purchase of any Securities
pursuant to this Section 3.02
on a Fundamental Change Repurchase Date if, on such date, the principal amount
of the Securities shall have been accelerated in accordance with this Indenture
and such acceleration shall not have been rescinded on or prior to such date in
accordance with this Indenture. The Paying Agent will promptly return to the
respective Holders thereof any Securities held by it during the continuance of
such an acceleration.

(J)            Notwithstanding
anything herein to the contrary, if the option granted to Holders to require
the repurchase of the Securities upon the occurrence of a Fundamental Change is
determined to constitute a tender offer, the Company shall comply with all
applicable tender offer rules under the Exchange Act, including Rule 13e-4
and Regulation 14E thereunder, and

 21
 

 

with all other applicable laws, and will file a Schedule TO or any
other schedules required under the Exchange Act or any other applicable laws.

(K)          As used herein and in
the Securities, a “Fundamental Change”
shall be deemed to have occurred upon the occurrence of either a “Change in
Control” or a “Termination of Trading.”

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

(a)           any “person” or “group” (as such
terms are used in Sections 13(d) and 14(d) of the Exchange Act) is or
becomes the “beneficial owner” (as such term is used in Rule 13d-3
under the Exchange Act), directly or indirectly, of fifty percent (50%) or more
of the Company’s Voting Stock; or

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

(c)           the Company consolidates with, or
merges with or into, another person or any person consolidates with, or merges
with or into, the Company, unless either:

(1)           the persons that “beneficially owned”
(as such term is used in Rule 13d-3 under the Exchange Act),
directly or indirectly, the shares of the Company’s Voting Stock immediately prior
to such consolidation or merger, “beneficially own,” directly or indirectly,
immediately after such consolidation or merger, shares of the surviving or
continuing corporation’s Voting Stock representing at least a majority of the
total outstanding voting power of all outstanding classes of the Voting Stock
of the surviving or continuing corporation in substantially the same proportion
as such ownership immediately prior to such consolidation or merger; or

(2)           at least ninety percent (90%) of the
consideration (other than cash payments for fractional shares or pursuant to
statutory appraisal rights) in such consolidation or merger consists of common
stock and any associated rights traded on a U.S. national securities exchange
or quoted on the Nasdaq National Market (or which will be so traded or quoted
when issued or exchanged in connection with such consolidation or merger), and,
as a result of such consolidation or merger, the Securities become convertible
solely (except as to any cash payments for the Principal Return, and cash in
lieu of fractional shares, due upon conversion) into such common stock and
associated rights

 22
 

 

(such a
consolidation or merger that satisfies the conditions set forth in this clause  (2),
a “Listed Stock Business Combination”);
or

(d)           the following persons cease for any
reason to constitute a majority of the Board of Directors:

(1)           individuals who on the Issue Date
constituted the Board of Directors; and

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

(e)           the Company is liquidated or
dissolved or the holders of the Company’s Capital Stock approve any plan or
proposal for the liquidation or dissolution of the Company.

(ii)     A “Termination
of Trading” shall be deemed to occur if the Common Stock (or other
common stock into which the Securities are then convertible) is neither listed
for trading on a U.S. national securities exchange nor approved for trading on
an established over-the-counter trading market in the United States.

Notwithstanding anything
herein or in the Securities to the contrary, a Change in Control will be deemed
not to have occurred if the Closing Sale Price per share of Common Stock for
each of twenty (20) or more Trading Days in a period of thirty (30) consecutive
Trading Days ending on the last Trading Day of the calendar quarter immediately
preceding the effective date of the relevant transaction that would otherwise
have constituted a Change in Control exceeds one hundred and thirty percent
(130%) of the Conversion Price in effect on the last Trading Day of such
immediately preceding calendar quarter.

IV.           COVENANTS

4.01         PAYMENT OF SECURITIES.

The Company shall pay all
amounts due with respect to the Securities on the dates and in the manner
provided in the Securities and this Indenture. All such amounts shall be
considered paid on the date due if the Paying Agent holds (or, if the Company
is acting as Paying Agent, the Company has segregated and holds in trust in accordance
with Section 2.04) on that date money
sufficient to pay the amount then due with respect to the Securities (unless
there shall be a Default in the payment of such amounts to the respective
Holder(s)). The Company will pay, in money of the United States that at the
time of payment is legal tender for payment of public and private debts, all
amounts due in cash with respect to the Securities, which amounts shall be paid
(A) in the case of a Security that is in global form, by wire transfer of immediately
available funds to the account designated by the Depositary or its nominee; (B) in
the case of a Security

 23
 

 

that is held, other than
global form, by a Holder of more than five million dollars ($5,000,000) in
aggregate principal amount of Securities, by wire transfer of immediately
available funds to the account specified by such Holder or, if such Holder does
not specify an account, by mailing a check to the address of such Holder set
forth in the register of the Registrar; and (C) in the case of a Security
that is held, other than global form, by a Holder of five million dollars
($5,000,000) or less in aggregate principal amount of Securities, by mailing a
check to the address of such Holder set forth in the register of the Registrar.

The Company shall pay, in
cash, interest on any overdue amount (including, to the extent permitted by
applicable law, overdue interest) at the rate borne by the Securities.

4.02         MAINTENANCE OF OFFICE OR AGENCY.

The Company will
maintain, or cause to be maintained, in the Borough of Manhattan, The City of
New York, an office or agency (which may be an office of the Trustee or an
Affiliate of the Trustee, Registrar or co-Registrar) where Securities may be
surrendered for registration of transfer or exchange, payment or conversion. The
Company will give prompt written notice to the Trustee of the location, and any
change in the location, of such office or agency. If at any time the Company
shall fail to maintain, or fail to cause to maintain, any such required office
or agency or shall fail to furnish the Trustee with the address thereof, such
presentations and surrenders may be made or served at the Corporate Trust
Office of the Trustee. The Company will maintain, or cause to be maintained, in
the Borough of Manhattan, The City of New York, an office or agency where
notices and demands to or upon the Company in respect of the Securities and
this Indenture may be served, provided that such office or agency may instead
be at the principal office of the Company located in the United States.

The Company may also from
time to time designate one or more other offices or agencies where the
Securities may be presented or surrendered for any or all such purposes and may
from time to time rescind such designations; provided,
however, that no such designation or
rescission shall in any manner relieve the Company of its obligation to
maintain an office or agency in the Borough of Manhattan, The City of New York
for such purposes. The Company will give prompt written notice to the Trustee
of any such designation or rescission and of any change in the location of any
such other office or agency.

The Company hereby
designates the Corporate Trust Office of the Trustee as an agency of the
Company in accordance with Section 2.03.

4.03         RULE 144A INFORMATION AND ANNUAL REPORTS.

(A)          At
any time when the Company is not subject to, or is in violation of, Sections 13
or 15(d) of the Exchange Act, the Company shall promptly provide to the
Trustee and shall, upon request, provide to any Holder, beneficial owner or
prospective purchaser of Securities or shares of Common Stock issued upon
conversion of any Securities, the information required to be delivered pursuant
to Rule 144A(d)(4) under the Securities Act to facilitate the resale
of such Securities or shares of Common Stock pursuant to Rule 144A; provided, however, that
the Company shall not be obligated to provide such information if none of the
outstanding Securities constitute Restricted Securities. The Company shall take
such further action as any Holder or

 24
 

 

beneficial holder of such Securities or shares of Common Stock may
reasonably request in writing to the extent required from time to time to
enable such Holder or beneficial holder to sell its Securities or shares of
Common Stock in accordance with Rule 144A, as such rule may be
amended from time to time.

(B)           The Company shall
deliver to the Trustee, no later than the third (3rd) Business Day after the
date such report is required to be filed with the SEC pursuant to the Exchange
Act (including, without limitation, to the extent applicable, any extension
permitted by Rule 12b-25 under the Exchange Act), a copy of each
report the Company is required to file with the SEC pursuant to Section 13
or 15(d) of the Exchange Act; provided, however, that
the Company shall not be required to deliver to the Trustee any material for
which the Company has sought and received confidential treatment by the SEC; provided further, each such report will be deemed to be so
delivered to the Trustee if the Company files such report with the SEC
through the SEC’s EDGAR database no later than the time such report is required
to be filed with the SEC pursuant to the Exchange Act (including, without
limitation, to the extent applicable, any extension permitted by Rule 12b-25
under the Exchange Act). In the event the Company is at any time no longer
subject to the reporting requirements of Section 13 or Section 15(d) of
the Exchange Act, the Company shall continue to provide the Trustee and, upon
request, any Holder, within thirty (30) calendar days after the date the
Company would have been required to file such reports with the SEC, annual and
quarterly consolidated financial statements substantially equivalent to
financial statements that would have been included in reports filed with the
SEC if the Company were subject to the reporting requirements of Section 13
or Section 15(d) of the Exchange Act, including, with respect to
annual information only, a report thereon by the Company’s certified
independent public accountants as such would be required in such reports filed
with the SEC and, in each case, together with a management’s discussion and
analysis of financial condition and results of operations which would be so
required. The Company also shall comply with the other provisions of TIA §
314(a). 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 an Officer’s Certificates).

4.04         COMPLIANCE CERTIFICATE.

The Company shall deliver
to the Trustee, within ninety (90) calendar days after the end of each fiscal
year of the Company, or, if earlier, by the date the Company is, or would be,
required to file with the SEC the Company’s annual report (whether on Form 10-K
under the Exchange Act or another appropriate form) for such fiscal year, a
certificate of two (2) or more Officers stating whether or not the
signatories to such Officer’s Certificate have actual knowledge of any Default
or Event of Default by the Company in performing any of its obligations under
this Indenture or the Securities. If such signatories do know of any such
Default or Event of Default, then such certificate shall describe the Default
or Event of Default and its status.

 25

 

 

4.05         STAY, EXTENSION AND USURY LAWS.

The Company covenants (to
the extent that it may lawfully do so) that it will 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 wherever enacted, now or at any time
hereafter in force, which may affect the covenants or the performance of this
Indenture; and the Company (in each case, to the extent that it may lawfully do
so) hereby expressly waives all benefit or advantage of any such law, and
covenants that it will not, 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 has been enacted.

4.06         CORPORATE EXISTENCE.

Subject to Article V, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate
existence and the corporate existence of each of its Subsidiaries, in
accordance with the respective organizational documents of the Company and of
each Subsidiary, and the rights (charter and statutory), licenses and
franchises of the Company and its Subsidiaries; provided,
however, that the Company shall not be
required to preserve any such right, license or franchise, or the corporate
existence of any Subsidiary, if in the good faith judgment of the Board of
Directors (i) such preservation or existence is not material to the
conduct of business of the Company and (ii) the loss of such right, license
or franchise or the dissolution of such Subsidiary does not have a material
adverse impact on the Holders.

4.07         NOTICE OF DEFAULT.

Upon the Company becoming
aware of the occurrence of any Default or Event of Default, the Company shall
give prompt written notice of such Default or Event of Default, and any
remedial action proposed to be taken, to the Trustee.

4.08         FURTHER INSTRUMENTS AND ACTS.

Upon request of the Trustee, the Company shall 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.

4.09         ADDITIONAL INTEREST NOTICE.

In the event that the Company is required to pay
additional interest to holders of Securities pursuant to the Registration
Rights Agreement, the Company will provide written notice (“Additional Interest Notice”) to the Trustee of its
obligation to pay additional interest no later than fifteen (15) calendar days
prior to the proposed payment date for the additional interest (or, if the
applicable Event (as defined in the Registration Rights Agreement) giving rise
to the obligation to pay such additional interest occurs on or after the
fifteenth (15th) calendar day before such payment date, no later than the
Business Day after the date such Event occurs). Each Additional Interest Notice
shall set forth the amount of Additional Interest to be paid by the Company on
such payment date. The Trustee shall not at any time be under any duty or
responsibility to any Holder to determine the amount of additional interest, or
with respect to the

 26
 

 

nature, extent or calculation of the amount of
additional interest owed, or with respect to the method employed in such
calculation of the additional interest.

V.            SUCCESSORS

5.01         WHEN COMPANY MAY MERGE, ETC.

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

The Company shall deliver
to the Trustee prior to the consummation of the proposed transaction an Officer’s
Certificate to the foregoing effect and an Opinion of Counsel (which may rely
upon such Officer’s Certificate as to the absence of Defaults and Events of
Default) stating that the proposed transaction and such supplemental indenture
will, upon consummation of the proposed transaction, comply with this
Indenture.

5.02         SUCCESSOR SUBSTITUTED.

Upon any consolidation,
merger or any sale, transfer, lease, conveyance or other disposition of all or
substantially all of the property or assets of the Company, the successor
person formed by such consolidation or into which the Company is merged or to
which such sale, transfer, lease, conveyance or other disposition is made shall
succeed to, and, except in the case of a lease, be substituted for, and may
exercise every right and power of, and shall assume every duty and obligation
of, the Company under this Indenture with the same effect as if such successor
had been named as the Company herein. When the successor assumes all
obligations of the Company hereunder, except in the case of a lease, all
obligations of the predecessor shall terminate.

VI.           DEFAULTS
AND REMEDIES

6.01         EVENTS OF DEFAULT.

An “Event of
Default” occurs if:

(i)         the Company fails to pay the principal
of, or premium, if any, on, any Security when the same becomes due and payable,
whether at maturity, on a Fundamental Change Repurchase Date with respect to a
Repurchase Upon Fundamental Change or otherwise;

 27
 

 

(ii)        the Company fails to pay an installment
of interest on any Security when due, if such failure continues for thirty (30)
days after the date when due;

(iii)       the Company fails to satisfy its
conversion obligations upon exercise of a Holder’s conversion rights pursuant
hereto;

(iv)       the Company fails to timely provide a
Fundamental Change Notice, as required by the provisions of this Indenture, or
fails to timely provide any notice pursuant to, and in accordance with, Section 10.14(D);

(v)        the Company fails to comply with any
other term, covenant or agreement set forth in the Securities or this Indenture
and such failure continues for the period, and after the notice, specified below;

(vi)       the Company or any of its Subsidiaries defaults
in the payment when due, after the expiration of any applicable grace period,
of principal of, or premium, if any, or interest on, Indebtedness for money
borrowed, in the aggregate principal amount then outstanding of fifty million
dollars ($50,000,000) or more, or the acceleration of Indebtedness of the
Company or any of its Subsidiaries for money borrowed in such aggregate
principal amount or more so that it becomes due and payable prior to the date
on which it would otherwise become due and payable and such default is not
cured or waived, or such acceleration is not rescinded, within sixty (60) days
after notice to the Company by the Trustee or to the Company and the Trustee by
Holders of at least twenty five percent (25%) in aggregate principal amount of
the Securities then outstanding, each in accordance with this Indenture;

(vii)      the Company or any of its Subsidiaries
fails, within sixty (60) days, to pay, bond or otherwise discharge any final,
non-appealable judgments or orders for the payment of money the total uninsured
amount of which for the Company or any of its Subsidiaries exceeds fifty
million dollars ($50,000,000), which are not stayed on appeal;

(viii)     the Company or any of its Significant
Subsidiaries or any group of Subsidiaries that in the aggregate would
constitute a Significant Subsidiary of the Company, pursuant to, or within the
meaning of, any Bankruptcy Law, insolvency law, or other similar law now or
hereafter in effect or otherwise, either:

(A)          commences a voluntary
case,

(B)           consents to the
entry of an order for relief against it in an involuntary case,

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

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

 28
 

 

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

(A)          is for relief against
the Company or any of its Significant Subsidiaries or any group of Subsidiaries
that in the aggregate would constitute a Significant Subsidiary of the Company
in an involuntary case or proceeding, or adjudicates the Company or any of its
Significant Subsidiaries or any group of Subsidiaries that in the aggregate
would constitute a Significant Subsidiary of the Company insolvent or bankrupt,

(B)           appoints a Custodian
of the Company or any of its Significant Subsidiaries or any group of
Subsidiaries that in the aggregate would constitute a Significant Subsidiary of
the Company for all or substantially all of the property of the Company or any
such Significant Subsidiary or any group of Subsidiaries that in the aggregate
would constitute a Significant Subsidiary of the Company, as the case may be,
or

(C)           orders the winding
up or liquidation of the Company or any of its Significant Subsidiaries or any
group of Subsidiaries that in the aggregate would constitute a Significant
Subsidiary of the Company,

and, in the case of each of the foregoing clauses (A),
(B) and (C) of this Section 6.01(ix),
the order or decree remains unstayed and in effect for at least sixty (60)
consecutive days.

The term “Bankruptcy Law” means Title 11, U.S. Code or any similar
U.S. Federal or State law for the relief of debtors, or any analogous foreign
law applicable to the Company or its Subsidiaries, as the case may be. The term
“Custodian” means any receiver, trustee,
assignee, liquidator or similar official under any Bankruptcy Law.

A Default under clause (v) above is not an Event of Default until (I) the
Trustee notifies the Company, or the Holders of at least twenty five percent
(25%) in aggregate principal amount of the Securities then outstanding notify
the Company and the Trustee in writing, of the Default and (II) the
Default is not cured within sixty (60) days after receipt of such notice. Such
notice must specify the Default, demand that it be remedied and state that the
notice is a “Notice of Default.”  If the Holders of at least twenty five
percent (25%) in aggregate principal amount of the outstanding Securities
request the Trustee to give such notice on their behalf, the Trustee shall do
so. When a Default is cured, it ceases to exist for all purposes under this
Indenture.

6.02         ACCELERATION.

If an Event of
Default (excluding an Event of Default specified in Section 6.01(viii) or (ix) with respect to the Company (but including an
Event of Default specified in Section 6.01(viii) or (ix) solely with respect to a Significant Subsidiary
of the Company or any group of Subsidiaries that in the aggregate would
constitute a Significant Subsidiary of the Company)) occurs and is continuing,
the Trustee by notice to the Company, or the Holders of at least twenty five
percent (25%) in aggregate principal amount of the Securities then outstanding
by notice to the Company and the Trustee, may declare the Securities to be
immediately due and payable in

 29
 

 

full. Upon
such declaration, the principal of, and any accrued and unpaid interest
(including any additional interest) on, all Securities shall be due and payable
immediately. If an Event of Default specified in Section 6.01(viii) or (ix) with respect to the Company (excluding, for
purposes of this sentence, an Event of Default specified in Section 6.01(viii) or (ix) solely
with respect to a Significant Subsidiary of the Company or any group of
Subsidiaries that in the aggregate would constitute a Significant Subsidiary of
the Company) occurs, the principal of, and accrued and unpaid interest
(including any additional interest) on, all the Securities shall ipso facto become and be immediately due and payable without
any declaration or other act on the part of the Trustee or any Holder. The
Holders of a majority in aggregate principal amount of the Securities then
outstanding by written notice to the Trustee may rescind or annul an
acceleration and its consequences if (A) the rescission would not conflict
with any order or decree, (B) all existing Events of Default, except the
nonpayment of principal or interest (including additional interest) that has
become due solely because of the acceleration, have been cured or waived and (C) all
amounts due to the Trustee under Section 7.07
have been paid.

6.03         OTHER REMEDIES.

Notwithstanding any other
provision of this Indenture, if an Event of Default occurs and is continuing,
and a Responsible Officer of the Trustee has actual knowledge of such Event of
Default, the Trustee may pursue any available remedy by proceeding at law or in
equity to collect the payment of amounts due with respect to 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 Holder in exercising any right or remedy accruing upon an Event of Default
shall not impair the right or remedy or constitute a waiver of or acquiescence
in the Event of Default. All remedies are cumulative.

6.04         WAIVER OF PAST DEFAULTS.

Subject to Sections  6.07 and 9.02, the Holders of a majority in aggregate principal
amount of the Securities then outstanding may, by notice to the Trustee, waive
any past Default or Event of Default and its consequences, other than (A) a
Default or Event of Default in the payment of the principal of, or premium, if
any, or interest or additional interest on, any Security, or in the payment of
the Fundamental Change Repurchase Price (or accrued and unpaid interest, if
any, payable as herein provided, upon Repurchase Upon Fundamental Change), (B) a
Default or Event of Default arising from a failure by the Company to convert
any Securities in accordance with this Indenture or (C) any Default or
Event of Default in respect of any provision of this Indenture or the
Securities which, under Section 9.02,
cannot be modified or amended without the consent of the Holder of each
outstanding Security affected. When a Default or an Event of Default is waived,
it is cured and ceases to exist for all purposes under this Indenture. This Section 6.04 shall be in lieu of TIA § 316(a)(1)(B),
and, as permitted by the TIA, TIA § 316(a)(1)(B) is hereby expressly
excluded from this Indenture.

 30
 

 

6.05         CONTROL BY MAJORITY.

The Holders of a majority
in aggregate principal amount of the Securities then outstanding may direct the
time, method and place of conducting any proceeding for any remedy available to
the Trustee or exercising any trust or power conferred on it. However, the
Trustee may refuse to follow any direction that conflicts with law or this
Indenture, is unduly prejudicial to the rights of other Holders or would
involve the Trustee in personal liability unless the Trustee is offered
indemnity reasonably satisfactory to it; provided, that
the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction. This Section 6.05
shall be in lieu of TIA § 316(a)(1)(A), and, as permitted by the TIA, TIA §
316(a)(1)(A) is hereby expressly excluded from this Indenture.

6.06         LIMITATION ON SUITS.

Except as provided in Section 6.07, a Securityholder may not institute any
proceeding under this Indenture, or for the appointment of a receiver or a
trustee, or for any other remedy under this Indenture unless:

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

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

(iii)       such
Holder or Holders offer and, if requested, provide to the Trustee indemnity
reasonably satisfactory to the Trustee against any loss, liability or expense
to or of the Trustee in connection with pursuing such remedy;

(iv)       the
Trustee does not comply with the request within sixty (60) days after receipt
of such notice, request and offer of indemnity; and

(v)        during
such sixty (60) day period, the Holders of a majority in aggregate principal
amount of the Securities then outstanding do not give the Trustee a direction
inconsistent with the request.

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

6.07         RIGHTS OF HOLDERS TO RECEIVE PAYMENT.

Notwithstanding any other
provision of this Indenture, the right of any Holder to receive payment of all
amounts due with respect to the Securities, on or after the respective due
dates as provided herein, or to bring suit for the enforcement of any such
payment on or after such respective dates, shall not be impaired or affected
without the consent of the Holder.

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Notwithstanding any other
provision of this Indenture, the right of any Holder to convert the Security in
accordance with this Indenture, or to bring suit for the enforcement of such
right, shall not be impaired or affected without the consent of the Holder.

6.08         COLLECTION SUIT BY TRUSTEE.

If an Event of Default
specified in Section 6.01(i) or (ii) occurs and is continuing, the Trustee may recover
judgment in its own name and as trustee of an express trust against the Company
for the whole amount due with respect to the Securities, including any unpaid
and accrued interest.

6.09         TRUSTEE MAY FILE PROOFS OF CLAIM.

The Trustee may file such
proofs of claim and other papers or documents as may be necessary or advisable
in order to have the claims of the Trustee, any predecessor Trustee and the
Securityholders allowed in any judicial proceedings relative to the Company or
its creditors or properties.

The Trustee may collect
and receive any moneys or other property payable or deliverable on any such
claims and to distribute the same, and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or similar official in any 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 the Trustee any amount due it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, and any other amounts due the Trustee under Section 7.07.

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

6.10         PRIORITIES.

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

First:                                              to
the Trustee for amounts due under Section 7.07;

Second:                              to
Securityholders for all amounts due and unpaid on the Securities, without
preference or priority of any kind, according to the amounts due and payable on
the Securities; and

Third:                                         the
balance, if any, to the Company.

The Trustee, upon prior
written notice to the Company, may fix a record date and payment date for any
payment by it to Securityholders pursuant to this Section 6.10.
At least fifteen (15) days before each such record date, the Trustee shall mail
to each Holder and the

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Company a written notice
that states such record date and payment date and the amount of such payment.

6.11         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 other than
the Trustee of an undertaking to pay the costs of the suit, and the court in
its discretion may assess reasonable costs, including reasonable attorneys’
fees, 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 6.11 does not apply to a suit by the Trustee, a
suit by a Holder pursuant to Section 6.07
or a suit by Holders of more than ten percent (10%) in aggregate principal
amount of the outstanding Securities.

VII.          TRUSTEE

7.01         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
their 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:

(i)         the Trustee need perform only those
duties that are specifically set forth in this Indenture and no implied
covenants or obligations shall be read into this Indenture against the Trustee;
and

(ii)        in the absence of bad faith, willful
misconduct or negligence 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; but in the case of any such certificates
or opinions which by any provision hereof are specifically required to be
furnished to the Trustee, the Trustee shall examine the certificates and
opinions to determine whether or not they conform to the requirements of this
Indenture (but need not confirm or investigate the accuracy of mathematical
calculations or other facts stated therein).

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

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

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(ii)        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 6.05.

(D)          Every provision of
this Indenture that in any way relates to the Trustee is subject to the
provisions of this Section 7.01.

(E)           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 shall
be segregated from other funds as directed in writing by the Company or as
required by law and shall be invested by the Trustee pursuant to the written
instructions of the Company reasonably satisfactory to the Trustee.

(F)           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, if it shall have
reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.

7.02         RIGHTS OF TRUSTEE.

(A)          Subject to Section 7.01, the Trustee may
conclusively rely 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; if, however, the Trustee shall determine
to make such further inquiry or investigation, it shall be entitled during
normal business hours to examine the relevant books, records and premises of
the Company, personally or by agent or attorney upon reasonable prior notice,
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.

(B)           Before the Trustee
acts or refrains from acting, it may require an Officer’s Certificate and/or an
Opinion of Counsel. The Trustee shall not be liable for any action it takes or
omits to take in good faith in reliance on such Officer’s Certificate or
Opinion of Counsel.

(C)           Any request or
direction of the Company mentioned herein shall be sufficiently evidenced by a
Company Request or Company Order, and any resolution of the Board of Directors
shall be sufficiently evidenced by a Board Resolution.

(D)          The Trustee may
consult with counsel of its own selection, and the advice of such counsel or
any Opinion of Counsel shall be full and complete authorization and protection
in respect of any action taken, suffered or omitted by it hereunder in good
faith and in reliance thereon.

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

(F)           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 discretion, rights or powers conferred
upon it by this Indenture.

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(G)          Except with respect to Section 6.01, the Trustee shall have no duty to inquire
as to the performance of the Company with respect to the covenants contained in
Article IV. In addition, the
Trustee shall not be deemed to have knowledge of an Event of Default except (i) any
Default or Event of Default occurring pursuant to Sections
6.01(i) or (ii) or
(ii) any Default or Event of Default of which a Responsible Officer of the
Trustee shall have received written notification or obtained actual knowledge. Delivery
of reports, information and documents to the Trustee under Article IV
(other than Sections  4.04
and 4.07) is for informational purposes
only and the Trustee’s receipt of the foregoing 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 on Officer’s
Certificates).

(H)          Subject to Section 7.01(A), the
Trustee shall be under no obligation to exercise any of the rights or powers
vested by this Indenture at the request or direction of any of the Holders
pursuant to this Indenture unless such Holders shall have offered to the
Trustee security or indemnity reasonably satisfactory to the Trustee against
the costs, expenses and liabilities which might be incurred by it in compliance
with such request or direction.

(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 each agent, custodian and
other Person employed to act hereunder.

(J)           The Trustee may request that the
Company deliver an Officer’s Certificate setting forth the names of individuals
and/or titles of officers authorized at such time to take specified actions
pursuant to this Indenture, which Officer’s Certificate may be signed by any
person authorized to sign an Officer’s Certificate, including any person
specified as so authorized in any such certificate previously delivered and not
superseded.

7.03         INDIVIDUAL RIGHTS OF TRUSTEE.

The Trustee in its
individual or any other capacity may become the owner or pledgee of Securities
and may otherwise deal with the Company or any of its Affiliates with the same
rights the Trustee would have if it were not Trustee. Any Securities Agent may
do the same with like rights. The Trustee, however, must comply with Sections  7.10 and 7.11.

7.04         TRUSTEE’S DISCLAIMER.

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

7.05         NOTICE OF DEFAULTS.

If a Default or
Event of Default occurs and is continuing as to which the Trustee has received
notice pursuant to the provisions of this Indenture, or as to which a
Responsible Officer of the Trustee shall have actual knowledge, then the Trustee
shall mail to each Holder a notice of

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the
Default or Event of Default within thirty (30) days after receipt of such
notice or after acquiring such knowledge, as applicable, unless such Default or
Event of Default has been cured or waived; provided, however, that, except in the case of a Default or Event of
Default in payment of any amounts due with respect to any Security, the Trustee
may withhold such notice if, and so long as it in good faith determines that,
withholding such notice is in the best interests of Holders.

7.06         REPORTS BY TRUSTEE TO HOLDERS.

Within sixty (60)
days after each May 15, beginning with May 15, 2007, the Trustee
shall mail to each Securityholder if required by TIA § 313(a) a brief
report dated as of such May 15 that complies with TIA § 313(c). In such
event, the Trustee also shall comply with TIA § 313(b).

A copy of each
report at the time of its mailing to Securityholders shall be mailed by first
class mail to the Company and filed by the Trustee with the SEC and each stock
exchange, if any, on which the Securities are listed. The Company shall
promptly notify the Trustee of the listing or delisting of the Securities on or
from any stock exchange.

7.07         COMPENSATION AND INDEMNITY.

The Company shall
pay to the Trustee from time to time such compensation for its services as
shall be agreed upon in writing. The Trustee’s compensation shall not be
limited by any law on compensation of a trustee of an express trust. The
Company shall reimburse the Trustee upon request for all reasonable
out-of-pocket expenses incurred by it pursuant to, and in accordance with, any
provision hereof. Such expenses shall include the reasonable compensation and
out-of-pocket expenses of the Trustee’s agents and counsel.

The Company shall
indemnify each of the Trustee, each predecessor Trustee and their respective
agents for, and hold each of them harmless against, any and all loss,
liability, damage, claim or expense (including the reasonable fees and expenses
of counsel and taxes other than those based upon the income of the Trustee)
incurred by it in connection with the acceptance or administration of this
trust and the performance of its duties hereunder or in connection with
enforcing the provisions of this Section 7.07,
including the reasonable costs and expenses of defending itself against any
claim (whether asserted by the Company, any Holder or any other Person) or
liability in connection with the exercise or performance of any of its powers
and duties hereunder. The Company need not pay for any settlement made without
its consent. The Trustee shall notify the Company promptly of any claim for
which it may seek indemnification. The Company need not reimburse any expense
or indemnify against any loss or liability incurred by the Trustee through the
Trustee’s negligence, bad faith or willful misconduct.

To secure the
Company’s payment obligations in this Section 7.07,
the Trustee shall have a lien prior to the Securities on all money or property
held or collected by the Trustee, except that held in trust to pay amounts due
on particular Securities.

The indemnity
obligations of the Company with respect to the Trustee provided for in this Section 7.07 shall survive any resignation or removal
of the Trustee.

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When the Trustee incurs
expenses or renders services after an Event of Default specified in Section 6.01(viii) or (ix) occurs,
the expenses and the compensation for the services are intended to constitute
expenses of administration under any Bankruptcy Law.

7.08         REPLACEMENT OF TRUSTEE.

A resignation or removal
of the Trustee and appointment of a successor Trustee shall become effective
only upon the successor Trustee’s acceptance of appointment as provided in this
Section 7.08.

The Trustee may resign by
so notifying the Company in writing thirty (30) days prior to such resignation.
The Holders of a majority in aggregate principal amount of the Securities then
outstanding may remove the Trustee by so notifying the Trustee and the Company
in writing and may appoint a successor Trustee with the Company’s consent. The
Company may remove the Trustee if:

(i)         the
Trustee fails to comply with Section 7.10;

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

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

(iv)       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.

If a successor Trustee
does not take office within thirty (30) days after the retiring Trustee resigns
or is removed, the retiring Trustee (at the Company’s expense), the Company or
the Holders of at least ten percent (10%) in aggregate principal amount of the
outstanding Securities may petition any court of competent jurisdiction for the
appointment of a successor Trustee.

If the Trustee fails to
comply with Section 7.10, the Company or
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. Thereupon 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. The successor Trustee shall
mail a notice of its succession to Securityholders. The retiring Trustee shall
promptly transfer all property held by it as Trustee to the successor Trustee,
subject to the lien provided for in Section 7.07.

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7.09         SUCCESSOR TRUSTEE BY MERGER, ETC.

If the Trustee
consolidates with, merges or converts into, or transfers all or substantially
all of its corporate trust business to, another corporation, the successor
corporation without any further act shall be the successor Trustee, if such
successor corporation is otherwise eligible hereunder.

7.10         ELIGIBILITY; DISQUALIFICATION.

There shall at all
times be a Trustee hereunder which (A) is an entity organized and doing
business under the laws of the United States of America or of any state thereof
or the District of Columbia, (B) is authorized under such laws to exercise
corporate trustee power, (C) is subject to supervision or examination by
federal or state authorities and (D) has a combined capital and surplus of
at least $50 million as set forth in its most recent published annual report of
condition. The Trustee shall comply with TIA § 310(b). Nothing in this
Indenture shall prevent the Trustee from filing with the SEC the application
referred to in the penultimate paragraph of TIA § 310(b).

7.11         PREFERENTIAL COLLECTION OF
CLAIMS AGAINST COMPANY.

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

VIII.        DISCHARGE
OF INDENTURE

8.01         TERMINATION OF THE OBLIGATIONS OF THE COMPANY.

This Indenture shall cease to be of further effect if (a) either
(i) all outstanding Securities (other than Securities replaced pursuant to
Section 2.07 hereof) have been
delivered to the Trustee for cancellation or (ii) all outstanding
Securities have become due and payable at their scheduled maturity or upon Repurchase
Upon Fundamental Change, and in either case the Company irrevocably deposits,
prior to the applicable due date, with the Trustee or the Paying Agent (if the
Paying Agent is not the Company or any of its Affiliates) cash sufficient to
pay all amounts due and owing on all outstanding Securities (other than
Securities replaced pursuant to Section 2.07
hereof) on the Maturity Date or a Fundamental Change Repurchase Date, as the
case may be; (b) the Company pays to the Trustee all other sums payable hereunder
by the Company; (c) no Default or Event of Default with respect to the
Securities shall exist on the date of such deposit; (d) such deposit will
not result in a breach or violation of, or constitute a Default under, this
Indenture; and (e) the Company has delivered to the Trustee an Officer’s
Certificate and an Opinion of Counsel, each stating that all conditions
precedent provided for herein relating to the satisfaction and discharge of
this Indenture have been complied with; provided, however, that Sections 2.02, 2.03, 2.04, 2.05, 2.06, 2.07, 2.08, 2.15, 2.16, 2.17, 3.02, 4.01, 4.02, 4.05, 7.07 and 7.08 and Articles  VIII and X shall survive
any discharge of this Indenture until such time as the Securities have been
paid in full and there are no Securities outstanding.

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8.02         APPLICATION OF TRUST MONEY.

The Trustee shall hold in
trust all money deposited with it pursuant to Section 8.01
and shall apply such deposited money through the Paying Agent and in accordance
with this Indenture to the payment of amounts due on the Securities.

8.03         REPAYMENT TO COMPANY.

The Trustee and the
Paying Agent shall promptly notify the Company of, and pay to the Company upon
the request of the Company, any excess money held by them at any time. The
Trustee or the Paying Agent, as the case may be, shall provide written notice
to the Company of any money that has been held by it and has, for a period of
two (2) years, remained unclaimed for the payment of the principal of, or
any accrued and unpaid interest on, the Securities. The Trustee and the Paying
Agent shall pay to the Company upon the written request of the Company any
money held by them for the payment of the principal of, premium, if any, or any
accrued and unpaid interest or additional interest on, the notes that remains
unclaimed for two (2) years; provided, however, that the Trustee or such Paying Agent, before being
required to make any such repayment, may, at the expense of the Company, cause
to be published once in a newspaper of general circulation in the City of New
York or cause to be mailed to each Holder, notice stating that such money
remains unclaimed and that, after a date specified therein, which shall not be
less than thirty (30) days from the date of such publication or mailing, any
unclaimed balance of such money then remaining will be repaid to the Company. After
payment to the Company, Securityholders entitled to the money must look to the
Company for payment as general creditors, subject to applicable law, and all
liability of the Trustee and the Paying Agent with respect to such money and
payment shall, subject to applicable law, cease.

8.04         REINSTATEMENT.

If the Trustee or Paying
Agent is unable to apply any money in accordance with Sections
8.01 and 8.02
by reason of any legal proceeding or by reason of any order or judgment of any
court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the obligations of the Company under this Indenture and the
Securities shall be revived and reinstated as though no deposit had occurred
pursuant to Sections  8.01
and 8.02 until such time as the Trustee or
Paying Agent is permitted to apply all such money in accordance with Sections  8.01 and 8.02; provided, however, that if the Company has made any payment of amounts
due with respect to any Securities because of the reinstatement of its
obligations, then the Company shall be subrogated to the rights of the Holders
of such Securities to receive such payment from the money held by the Trustee
or Paying Agent.

IX.           AMENDMENTS

9.01         WITHOUT CONSENT OF HOLDERS.

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

(i)         to
comply with Sections  5.01 and 10.11;

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(ii)        to
make any changes or modifications to this Indenture necessary in connection
with the registration of the public offer and sale of the Securities under the
Securities Act pursuant to the Registration Rights Agreement or the
qualification of this Indenture under the TIA;

(iii)       to
secure the obligations of the Company in respect of the Securities;

(iv)       to
add to the covenants of the Company described in this Indenture for the benefit
of Securityholders or to surrender any right or power conferred upon the
Company; and

(v)        to
make provisions with respect to adjustments to the Conversion Rate as required
by this Indenture or to increase the Conversion Rate in accordance with this
Indenture.

In addition, the
Company and the Trustee may enter into a supplemental indenture without the
consent of Holders of the Securities to (i) cure any ambiguity, defect,
omission or inconsistency in this Indenture in a manner that does not,
individually or in the aggregate with all other changes, adversely affect the
rights of any Holder in any material respect or (ii) to conform the
Indenture or the Securities to the description thereof contained in the
Offering Memorandum under the caption “Description of notes.”

9.02         WITH CONSENT OF HOLDERS.

The Company, with the
consent of the Trustee, may amend or supplement this Indenture or the
Securities without notice to any Securityholder but with the written consent of
the Holders of at least a majority in aggregate principal amount of the
outstanding Securities. Subject to Sections  6.04 and 6.07, the Holders of a majority in aggregate
principal amount of the outstanding Securities may, by notice to the Trustee,
waive compliance by the Company with any provision of this Indenture or the
Securities without notice to any other Securityholder. Notwithstanding anything
herein to the contrary, without the consent of each Holder of each outstanding
Security affected, an amendment, supplement or waiver, including a waiver
pursuant to Section 6.04, may not:

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

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

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

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

 40
 

 

(e)           modify, in a manner adverse to
Holders, the provisions with respect to the right of Holders pursuant to Article III to require the Company to
repurchase Securities upon the occurrence of a Fundamental Change;

(f)            modify the provisions of Section 2.18 in a manner adverse to
Holders;

(g)           adversely affect the right of Holders
to convert Securities in accordance with Article X;

(h)           reduce the percentage in aggregate
principal amount of outstanding Securities whose Holders must consent to a
modification to or amendment of any provision of this Indenture or the
Securities;

(i)            reduce the percentage in aggregate
principal amount of outstanding Securities whose Holders must consent to a
waiver of compliance with any provision of this Indenture or the Securities or
a waiver of any Default or Event of Default; or

(j)            modify the provisions of this
Indenture with respect to modification and waiver (including waiver of a
Default or an Event of Default), except to increase the percentage required for
modification or waiver or to provide for the consent of each affected Holder.

Promptly after an
amendment, supplement or waiver under Section 9.01
or this Section 9.02 becomes effective,
the Company shall mail, or cause to be mailed, to Securityholders a notice
briefly describing such amendment, supplement or waiver. Any failure of the
Company to mail such notice shall not in any way impair or affect the validity
of such amendment, supplement or waiver.

It shall not be necessary
for the consent of the Holders under this Section 9.02
to approve the particular form of any proposed amendment, supplement or waiver,
but it shall be sufficient if such consent approves the substance thereof.

9.03         COMPLIANCE WITH TRUST INDENTURE ACT.

Every amendment, waiver
or supplement to this Indenture or the Securities shall comply with the TIA as
then in effect.

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

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An amendment, supplement
or waiver becomes effective in accordance with its terms and thereafter binds
every Holder.

After an amendment,
supplement or waiver becomes effective with respect to the Securities, it shall
bind every Holder unless such amendment, supplement or waiver makes a change
that requires, pursuant to Section 9.02,
the consent of each Holder affected. In that case, the amendment, supplement or
waiver shall bind each Holder of a Security who has consented to it and,
provided that notice of such amendment, supplement or waiver is reflected on a
Security that evidences the same debt as the consenting Holder’s Security,
every subsequent Holder of a Security or portion of a Security that evidences
the same debt as the consenting Holder’s Security.

Nothing in this Section 9.04 shall impair the Company’s rights pursuant
Section 9.01 to amend this
Indenture or the Securities without the consent of any Securityholder in the
manner set forth in, and permitted by, such Section 9.01.

9.05         NOTATION ON OR EXCHANGE OF SECURITIES.

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

9.06         TRUSTEE PROTECTED.

The Trustee shall sign
any amendment, supplemental indenture or waiver authorized pursuant to this Article IX; provided, however, that the Trustee need not sign any amendment,
supplement or waiver authorized pursuant to this Article IX
that adversely affects the Trustee’s rights, duties, liabilities or immunities.
The Trustee shall be entitled to receive and conclusively rely upon an Opinion
of Counsel as to legal matters and an Officer’s Certificate as to factual
matters that any supplemental indenture, amendment or waiver is permitted or
authorized pursuant to this Indenture.

9.07         EFFECT OF SUPPLEMENTAL INDENTURES.

Upon the due execution
and delivery of any supplemental indenture in accordance with this Article IX, this Indenture shall be modified in
accordance therewith, and such supplemental indenture shall form a part of this
Indenture for all purposes, and, except as set forth in Sections
9.02 and 9.04, every Holder of Securities shall be bound thereby.

 42
 

 

X.            CONVERSION

10.01       CONVERSION PRIVILEGE; RESTRICTIVE LEGENDS.

(A)          Subject to the
provisions of Article III,
the Securities shall be convertible into cash and, if applicable, shares of
Common Stock in accordance with this Article X
and as set forth below if any of the following conditions are satisfied:

(i)      Conversion Based on
Closing Sale Price of Common Stock. Prior to the Maturity Date or
earlier Repurchase Upon Fundamental Change, the Securities may be surrendered
for conversion into cash and, if applicable, shares of Common Stock during any
calendar quarter after the calendar quarter ending September 30, 2006, if
the Closing Sale Price for each of twenty (20) or more Trading Days in a period
of thirty (30) consecutive Trading Days ending on the last Trading Day of the
immediately preceding calendar quarter exceeds one hundred and thirty percent
(130%) of the Conversion Price in effect on the last Trading Day of the
immediately preceding calendar quarter. Solely for purposes of determining whether
the Securities shall have become convertible pursuant to this Section 10.01(A)(i), the Company
shall, in its good faith determination, make appropriate adjustments to the
Closing Sale Prices and/or such Conversion Price used to determine whether the Securities
shall have become convertible pursuant to this Section 10.01(A)(i) to account for any adjustments to the Conversion Rate which
shall have become effective, or any event requiring an adjustment to the
Conversion Rate where the Ex Date of such event occurs, during the period of
thirty (30) consecutive Trading Days ending on the last Trading Day of
the immediately preceding calendar quarter.

(ii)     Conversion Upon
Satisfaction of Trading Price Condition. Prior to the Maturity Date
or earlier Repurchase Upon Fundamental Change, the Securities may be
surrendered for conversion into cash and, if applicable, shares of Common Stock
during the five (5) consecutive Business Days immediately after any five (5) consecutive
Trading Day period (such five (5) consecutive Trading Day period, the “Note Measurement Period”) in which the
average Trading Price per $1,000 principal amount of the Securities was equal
to or less than ninety seven percent (97%) of the average Conversion Value
during the Note Measurement Period (such condition, the “Trading Price Condition”). The Bid
Solicitation Agent shall not have any obligation to determine the Trading Price
unless the Company has requested such determination, and the Company shall have
no obligation to make such request unless a Holder of at least five million
dollars ($5,000,000) in aggregate principal amount of the Securities provides
the Company with reasonable evidence that the Trading Price per $1,000
principal amount of the Securities would be equal to or less than ninety seven
percent (97%) of the product of the Closing Sale Price and the Conversion Rate.
Upon receipt of such evidence, the Company shall instruct the Bid Solicitation
Agent to determine the Trading Price per $1,000 principal amount of the
Securities for each of the five (5) successive Trading Days immediately
after the Company receives such evidence and on each Trading Day thereafter
until the first Trading Day on which the Trading Price Condition is no longer
satisfied. For purposes of this paragraph, the “Conversion Value” per $1,000 principal amount of Securities,
on a given Trading Day,

 43
 

 

means the
product of the Closing Sale Price on such Trading Day and the Conversion Rate
in effect on such Trading Day.

(iii)    Conversion Upon Certain
Distributions. If the Company takes any action, or becomes aware of
any event, that would require an adjustment to the Conversion Rate pursuant to Sections 10.05(b), 10.05(c), 10.05(d) or
10.05(e), the Securities may,
prior to the Maturity Date or earlier Repurchase Upon Fundamental Change, be
surrendered for conversion into cash and, if applicable, shares of Common Stock
beginning on the date the Company mails the notice to the Holders as provided
in Section 10.10 (or, if
earlier, the date the Company is required to mail such notice) and at any time
thereafter until the close of business on the Business Day immediately
preceding the Ex Date (as defined in Section 10.05(g))
of the applicable transaction or until the Company announces that such
transaction will not take place.

(iv)    Conversion Upon Occurrence
of Certain Corporate Transactions. If either:

(a)           a Fundamental Change or a Make-Whole
Fundamental Change occurs; or

(b)           the Company is a party to a
consolidation, merger or binding share exchange pursuant to which the Common
Stock would be converted into or exchanged for, or would constitute solely the
right to receive, cash, securities or other property,

then, in each case, the Securities may, prior to the
Maturity Date or earlier Repurchase Upon Fundamental Change, be surrendered for
conversion into cash and, if applicable, shares of Common Stock at any time during the period that begins on, and
includes, the date that is forty five (45) calendar days prior to the date
originally announced by the Company as the anticipated effective date of such
transaction (which anticipated effective date the Company shall
disclose, in good faith, in the written notice and public announcement referred
to in Section 10.01(C)) and ends on, and includes, the date that is
thirty (30) calendar days after the actual effective date of such transaction; provided, however, that
if such transaction is a Make-Whole Fundamental Change, then the
Securities may also be surrendered for conversion into cash and, if applicable,
shares of Common Stock at any time during
the Make-Whole Conversion Period applicable to such Make-Whole Fundamental
Change; provided, further,
that if such transaction is a Fundamental Change, then the Securities
may also be surrendered for conversion into cash and, if applicable, shares of
Common Stock at any time until, and including, the Fundamental Change
Repurchase Date applicable to such Fundamental
Change.

(v)     Conversion on or after June 15,
2013. The Securities may be surrendered for conversion into cash
and, if applicable, shares of Common Stock at any time from, and including, June 15,
2013 to, and including, the Business Day immediately preceding July 15,
2013.

 44
 

 

Notwithstanding anything
herein to the contrary, no Security may be converted after the close of
business on the Business Day immediately preceding the Maturity Date.

(B)           The initial
Conversion Rate shall be 29.9679 shares of Common Stock per $1,000 principal
amount of Securities. The Conversion Rate shall be subject to adjustment in
accordance with Sections 10.05
through 10.14.

(C)           Whenever any event
described in Section 10.01
shall occur which shall cause the Securities to become convertible as provided
in this Article X, the
Company shall promptly deliver, in accordance with Section 11.02, written notice of the convertibility of
the Securities to the Trustee and each Holder and shall, as soon practicable,
but in no event later than the open of business on the third (3rd) Business Day
following the date the Securities shall become convertible as provided in this Article X as a result of such event
(or, in the case of a Fundamental Change, or a consolidation, merger or binding
share exchange to which the Company is a party and pursuant to which the Common
Stock would be converted into or exchanged for, or would constitute solely the
right to receive, cash, securities or other property, no later than the forty fifth (45th) calendar day prior
to the date originally announced by the Company as the anticipated effective
date of such transaction), publicly announce, through a reputable
national newswire service, that the Securities have become convertible. Such
written notice and public announcement shall include:

(i)      a description of such event;

(ii)     a description of the periods during which
the Securities shall be convertible as provided in this Article X as a result of such event;

(iii)    the anticipated effective date and the Ex
Date of such event, if applicable; and

(iv)    the procedures Holders must follow to
convert their notes in accordance with this Article X,
including the name and address of the Conversion Agent.

(D)          A Holder may convert
a portion of the principal amount of a Security if such portion is $1,000
principal amount or an integral multiple of $1,000 principal amount. Provisions
of this Indenture that apply to conversion of all of a Security also apply to
conversion of a portion of such Security.

10.02       CONVERSION PROCEDURE AND PAYMENT UPON CONVERSION.

(A)          To convert a
Security, a Holder must satisfy the requirements of paragraph 8 of the Securities, and the Securities must be
convertible pursuant to Section 10.01.
Upon conversion of a Holder’s Security, the Company shall deliver, through the
Conversion Agent, the following to such Holder:

(i)      an amount (the “Principal Return”) in cash equal to the sum of the Daily
Principal Returns for each Trading Day in the Cash Settlement Averaging Period
for such conversion; and

 45
 

 

(ii)     if
the sum of the Daily Net Shares for each Trading Day in the Cash Settlement
Averaging Period for such conversion is greater than or equal to one (1), a
certificate for a number of shares of Common Stock (the “Net Shares”) equal to such sum; provided, however, that the
Company shall not issue fractional shares of Common Stock and shall instead
deliver cash (in addition to any other consideration payable upon such
conversion) in an amount equal to the value of such fraction computed on the
basis of the Volume-Weighted
Average Price per share of Common Stock on the last Trading Day in the
applicable Cash Settlement Averaging Period.

The Company shall
deliver such Principal Return and, if applicable, such Net Shares as soon as
practicable following the Business Day (the “Conversion
Date”) on which such Holder satisfies all the requirements for such
conversion specified in paragraph 8 of
the Securities, but in no event more than three (3) Business Days after
the last Trading Day in the Cash Settlement Averaging Period applicable to such
conversion; provided, however,
that any Make-Whole Consideration payable pursuant to Section 10.14
shall be delivered by the Company within the time period specified in Section 10.14.

(B)           “Cash Settlement
Averaging Period” shall mean, with respect to a Security that is
tendered for conversion in accordance with this Article X, the thirty (30) consecutive
Trading-Day period that begins on, and includes, the third (3rd) Trading Day
after the Conversion Date for such Security; provided,
however, that if such Conversion Date is
on or after the thirty third (33rd) scheduled Trading Day prior to the Maturity
Date, then the Cash Settlement Averaging Period with respect to such conversion
shall be deemed to be the thirty (30) consecutive Trading-Day period that
begins on and includes the thirtieth (30th) scheduled Trading Day prior to the
Maturity Date.

“Daily Principal Return” shall mean,
with respect to a Trading Day, the lesser of thirty three dollars and
thirty three cents ($33.33)
and the Daily Conversion Value for such Trading Day.

“Daily Conversion Value” shall mean,
with respect to a Trading Day, one-thirtieth (1/30th) of the product of (i) the
Conversion Rate in effect on such Trading Day and (ii) the Volume-Weighted
Average Price per share of Common Stock on such Trading Day.

“Daily Net Shares” shall mean, with
respect to a Trading Day, an amount equal to the following: (i) if the Daily
Conversion Value for such Trading Day is equal to or lesser than thirty three
dollars and thirty three cents ($33.33), then the Daily Net Shares with respect
to such Trading Day shall mean an amount equal to zero (0); and (ii) if the Daily Conversion Value for
such Trading Day exceeds thirty three dollars and thirty three cents ($33.33),
then the Daily Net Shares with respect to such Trading Day shall mean a
fraction (a) whose numerator is the excess of such Daily Conversion Value
over thirty three dollars and thirty three cents ($33.33) and (b) whose
denominator is the Volume-Weighted
Average Price per share of Common Stock on such Trading Day.

“Volume-Weighted Average Price” per
share of Common Stock on any Trading Day means such price as displayed on
Bloomberg (or any successor service) page MEDI <equity> VAP in
respect of the period from 9:30 a.m. to 4:00 p.m., New York City
time, on such

 46
 

 

Trading Day, or, if such
price is not available, the market value per share of Common Stock on such
Trading Day as determined by a nationally recognized investment banking firm
retained for this purpose by the Company.

(C)           With respect to a
conversion of a Security pursuant hereto, at and after the close of business on
the last Trading Day (the “Relevant Date”)
of the Cash Settlement Averaging Period applicable to such conversion, the
person in whose name any certificate representing any Net Shares issuable upon
such conversion is registered shall be treated as a stockholder of record of
the Company; provided, however,
that if any such Net Shares constitute Make-Whole Consideration, then the
Relevant Date with respect to such Net Shares that constitute Make-Whole
Consideration shall instead be deemed to be the later of (1) the last
Trading Day of the Cash Settlement Averaging Period applicable to such
conversion and (2) the Effective Date of the applicable Make-Whole
Fundamental Change. On and after the Conversion Date with respect to a
conversion of a Security pursuant hereto, all rights of the Holder of such
Security shall terminate, other than the right to receive the consideration
deliverable upon conversion of such Security as provided herein. A Holder of a
Security is not entitled, as such, to any rights of a holder of Common Stock
until, if such Holder converts such Security and is entitled pursuant hereto to
receive Net Shares in respect of such conversion, the close of business on the
Relevant Date or respective Relevant Dates, as the case may be, with respect to
such conversion.

(D)          Except as provided in
the Securities or in this Article X,
no payment or adjustment will be made for accrued interest or additional
interest on a converted Security or for dividends on any Common Stock issued on
or prior to conversion, and accrued interest and additional interest, if any,
will be deemed to be paid by the consideration paid to the Holder upon
conversion. Such accrued interest and additional interest, if any, shall be
deemed to be paid in full rather than cancelled, extinguished or forfeited. If
any Holder surrenders a Security for conversion after the close of business on
the record date for the payment of an installment of interest and prior to the
related interest payment date, then, notwithstanding such conversion, the
interest payable with respect to such Security on such interest payment date
shall be paid on such interest payment date to the Holder of record of such
Security at the close of business on such record date; provided,
however, that such Security, when surrendered for conversion, must
be accompanied by payment in cash to the Conversion Agent on behalf of the
Company of an amount equal to the interest payable on such interest payment
date on the portion so converted; provided further, however,
that such payment to the Conversion Agent described in the immediately
preceding proviso in respect of a Security surrendered for conversion shall not
be required with respect to a Security that either (i) is surrendered for
conversion after the record date immediately preceding the Maturity Date or (ii) is
surrendered for conversion after a record date for the payment of an
installment of interest and on or before the related interest payment date,
where, pursuant to Section 3.02,
the Company has specified, with respect to a Fundamental Change, a Fundamental
Change Repurchase Date that is after such record date and on or before such
interest payment date; provided further,
that, if the Company shall have, prior to the Conversion Date with respect to a
Security, defaulted in a payment of interest on such Security, then in no event
shall the Holder of such Security who surrenders such Security for conversion
be required to pay such defaulted interest or the interest that shall have
accrued on such defaulted interest pursuant to Section 2.12 or otherwise (it being understood that
nothing in this Section 10.02 (D) shall
affect the Company’s obligations under Section 2.12).

 47

 

 

(E)           If a Holder converts
more than one Security at the same time, the number of full shares of Common
Stock issuable upon such conversion, if any, shall be based on the total
principal amount of all Securities converted.

(F)           Upon surrender of a
Security that is converted in part, the Trustee shall authenticate for the
Holder a new Security equal in principal amount to the unconverted portion of
the Security surrendered.

(G)           If the last day on
which a Security may be converted is a Legal Holiday in a place where a
Conversion Agent is located, the Security may be surrendered to that Conversion
Agent on the next succeeding day that is not a Legal Holiday.

10.03       TAXES ON CONVERSION.

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

10.04       COMPANY TO PROVIDE STOCK.

The Company shall at all
times reserve out of its authorized but unissued Common Stock or Common Stock
held in its treasury enough shares of Common Stock to permit the conversion, in
accordance herewith, of all of the Securities. The shares of Common Stock, if
any, due upon conversion of a Global Security shall be delivered by the Company
in accordance with the Depositary’s customary practices.

All shares of Common
Stock which may be issued upon conversion of the Securities shall be validly
issued, fully paid and non-assessable and shall be free of preemptive or
similar rights and free of any lien or adverse claim.

The Company shall comply
with all securities laws regulating the offer and delivery of shares of Common
Stock upon conversion of Securities and shall list such shares on each national
securities exchange or automated quotation system on which the Common Stock is
listed.

10.05       ADJUSTMENT OF CONVERSION RATE.

The Conversion Rate shall be subject to adjustment
from time to time as follows:

(a)           In
case the Company shall (1) pay a dividend in shares of Common Stock to all
holders of Common Stock, (2) make a distribution in shares of Common Stock
to all holders of Common Stock, (3) subdivide the outstanding shares of
Common Stock into a greater number of shares of Common Stock or

 48
 

 

(4) combine the outstanding shares of Common Stock into a smaller
number of shares of Common Stock, the Conversion Rate shall be adjusted by
multiplying the Conversion Rate in effect immediately prior to close of
business on the Ex Date or effective date, as applicable, of such dividend,
distribution, subdivision or combination, by the number of shares of Common
Stock that a person who owns only one share of Common Stock immediately before
such Ex Date or effective date, as applicable, of such dividend, distribution,
subdivision or combination and who is entitled to participate in such dividend,
distribution, subdivision or combination would own immediately after giving
effect to such dividend, distribution, subdivision or combination (without
giving effect to any arrangement pursuant to such dividend, distribution,
subdivision or combination not to issue fractional shares of Common Stock). Any
adjustment made pursuant to this Section 10.05(a) shall
become effective immediately after such Ex Date, in the case of a dividend or
distribution, and shall become effective immediately after such effective date,
in the case of a subdivision or combination.

(b)           In
case the Company shall issue rights or warrants to all or substantially all
holders of Common Stock, entitling them, for a period expiring not more than
sixty (60) days immediately following the record date for the determination of
holders of Common Stock entitled to receive such rights or warrants, to
subscribe for or purchase shares of Common Stock, at a price per share that is
less than the current market price (as determined pursuant to Section 10.05(g)) per share of Common
Stock on the record date for the determination of holders of Common Stock
entitled to receive such rights or warrants, the Conversion Rate shall be
increased by multiplying the Conversion Rate in effect immediately prior to the
Ex Date corresponding to such record date by a fraction of which (A) the
numerator shall be the sum of (I) the number of shares of Common Stock
outstanding immediately prior to the open of business on such Ex Date and (II) the aggregate number of shares (the “Underlying Shares”) of Common Stock
underlying all such issued rights or warrants (whether by exercise, conversion,
exchange or otherwise), and (B) the denominator shall be the sum of (I) number
of shares of Common Stock outstanding immediately prior to the open of business
on such Ex Date and (II) the number of shares of Common Stock which the
aggregate exercise, conversion, exchange or other price at which the Underlying
Shares may be subscribed for or purchased pursuant to such rights or warrants
would purchase at such current market price per share of Common Stock; provided, however,
no adjustment shall be made pursuant to this Section 10.05(b) solely by reason of a distribution of rights pursuant to a
stockholders’ rights plan, provided the Company has complied with the
provisions of Section 10.13
with respect to such stockholders’ rights plan and distribution. Such increase
shall become effective immediately prior to
the open of business on such Ex Date. In no event shall the Conversion
Rate be decreased pursuant to this Section 10.05(b).

(c)           Except
as set forth in the immediately following paragraph, in case the Company shall
dividend or distribute to all or substantially all holders of Common Stock
shares of Capital Stock of the Company or any existing or future Subsidiary
(other than Common Stock), evidences of Indebtedness or other assets

 49
 

 

(other than dividends or distributions requiring an adjustment to the
Conversion Rate in accordance with Sections
10.05(d) or 10.05(e)), or shall dividend or distribute to all
or substantially all holders of Common Stock rights or warrants to subscribe
for or purchase securities (other than dividends or distributions of rights or
warrants requiring an adjustment to the Conversion Rate in accordance with Section 10.05(b)), then in each such
case the Conversion Rate shall be increased
by multiplying the Conversion Rate in effect immediately prior to the open of
business on the Ex Date corresponding to the record date for the determination
of stockholders entitled to such
dividend or distribution by a fraction of which (A) the numerator shall be
the current market price per share of Common Stock (as determined pursuant to Section 10.05(g)) on such record date and (B) the denominator
shall be an amount equal to (I) such current market price per share of
Common Stock less (II) the fair market value (as determined in good faith
by the Board of Directors, whose determination shall be conclusive and
described in a Board Resolution), on such Ex Date, of the portion of the shares
of Capital Stock, evidences of Indebtedness, assets, rights and warrants to be
dividended or distributed applicable to one share of Common Stock, such
increase to become effective immediately prior to the open of business on such
Ex Date; provided however,
that if the denominator of such fraction shall be equal to or less than zero,
then the Conversion Rate shall be instead adjusted so that the Conversion Price
is equal to the par value per share of Common Stock.

Notwithstanding anything to the contrary in
this Section 10.05(c), if, in
a distribution requiring an adjustment to the Conversion Rate pursuant to the
immediately preceding paragraph, the property distributed by the Company to all
Holders of Common Stock consists solely of Capital Stock, or similar equity
interests in, a Subsidiary or other business unit of the Company, which Capital
Stock or interests are, or will be upon completion of such distribution, listed
on a national securities exchange or quoted on an automated quotation system
and closing sale prices for such Capital Stock or interests are readily
available (a “Spin-Off”), then in
lieu of adjusting the Conversion Rate in accordance with the immediately
preceding paragraph, the Conversion Rate shall be increased (subject to the
other terms of this Indenture) by multiplying the Conversion Rate in effect
immediately prior to the opening of business on the thirteenth (13th) Trading
Day following the record date for such distribution by a fraction (I) whose
numerator is the sum of (A) the average of the Closing Sale Prices per
share of Common Stock for the ten (10) consecutive Trading Days commencing
on, and including, the third (3rd) Trading Day after the record date for such
distribution and (B) the product of (i) the average of the Closing
Sale Prices per share or unit, as applicable, of such Capital Stock or
interests (determined as if such shares or units were shares of Common Stock
for purposes of the definition of “Closing Sale Price”) for the for the ten (10) consecutive
Trading Days commencing on, and including, the third (3rd) Trading Day after
the record date for such distribution and (ii) number of shares or units,
as applicable, of such Capital Stock or interests distributed per share of
Common Stock; and (II) whose denominator is the average of the Closing
Sale Prices per share of Common Stock for the ten (10) consecutive Trading
Days commencing on, and including, the third (3rd) Trading

 50
 

 

Day after the record date for such distribution. The average Closing
Sale Prices referred to in the immediately preceding sentence shall be subject
to appropriate adjustments, in the Company’s good faith determination, to account for other distributions, stock
splits and combinations, stock dividends, reclassifications and similar events. Each adjustment to the Conversion Rate made
pursuant to this paragraph shall become effective immediately after the
open of business on the thirteenth (13th) Trading Day following the record date
for such distribution.

Rights or warrants distributed by the Company to all holders of Common
Stock entitling the holders thereof to subscribe for or purchase shares of the
Company’s Capital Stock (either initially or under certain circumstances),
which rights, options or warrants, until the occurrence of a specified event or
events (“Trigger Event”): (i) are
deemed to be transferred with such shares of Common Stock; (ii) are not
exercisable; and (iii) are also issued in respect of future issuances of
Common Stock, shall be deemed not to have been distributed for purposes of this
Section 10.05 (and no
adjustment to the Conversion Rate under this Section 10.05
will be required) until the occurrence of the earliest Trigger Event, whereupon
such rights, options and warrants shall be deemed to have been distributed and
an appropriate adjustment (if any is required) to the Conversion Rate shall be
made under this Section 10.05(c).
In no event shall the Conversion Rate be decreased pursuant to this Section 10.05(c).

(d)           In
case the Company shall, by dividend or otherwise, at any time make a
distribution of cash (excluding any cash that is distributed as part of a
distribution requiring a Conversion Rate adjustment pursuant to Section 10.05(e)) to all or
substantially all holders of Common Stock, the Conversion Rate shall be
increased by multiplying the Conversion Rate in effect immediately prior to the open of business on the Ex Date for such
distribution by a fraction (A) whose numerator shall be the current
market price per share of Common Stock (as determined pursuant to Section 10.05(g)) on such Ex Date and (B) whose
denominator shall be an amount equal to (I) such current market price per
share of Common Stock less (II) the
amount of the distribution per share of Common Stock; provided however, that if the denominator
of such fraction shall be equal to or less than zero, then the Conversion Rate
shall be instead adjusted so that the Conversion Price is equal to the par
value per share of Common Stock. An adjustment to the Conversion Rate pursuant
to this Section 10.05(d) shall
become effective immediately prior to the
open of business on such Ex Date. In no event shall the Conversion Rate
be decreased pursuant to this Section 10.05(d).

(e)           In
case the Company or any Subsidiary shall distribute cash or other consideration
in respect of a tender offer or exchange offer made by the Company or any
Subsidiary for all or any portion of the Common Stock where the sum of the
aggregate amount of such cash distributed and the aggregate fair market value (as
determined in good faith by the Company), as of the Expiration Date (as defined
below), of such other consideration distributed (such sum, the “Aggregate Amount”) expressed as an amount
per share of Common Stock validly tendered or exchanged, and not withdrawn,
pursuant to such tender offer

 51
 

 

or exchange offer as of the Expiration Time (as defined below) (such
tendered or exchanged shares of Common Stock, the “Purchased Shares”) exceeds the Closing Sale Price per share of
Common Stock on the first Trading Day after the last date (such last date, the “Expiration Date”) on which tenders or
exchanges could have been made pursuant to such tender offer or exchange offer
(as the same may be amended through the Expiration Date), then the Conversion
Rate shall be increased by multiplying the Conversion Rate in effect
immediately prior to the close of business on first Trading Day after the
Expiration Date by a fraction (A) whose numerator is equal to the sum of (I) the
Aggregate Amount and (II) the product of (a) such Closing Sale Price
per share of Common Stock and (b) an amount equal to (i) the number
of shares of Common Stock outstanding as of the last time (the “Expiration Time”) at which tenders or
exchanges could have been made pursuant to such tender offer or exchange offer
(including all Purchased Shares) less (ii) the Purchased Shares and (B) whose
denominator is equal to the product of (I) the number of shares of Common
Stock outstanding as of the Expiration Time (including all Purchased Shares)
and (II) such Closing Sale Price per share of Common Stock.

An
increase, if any, to the Conversion Rate pursuant to this Section 10.05(e) shall
become effective immediately prior to the opening of business on the Business
Day following the first Trading Day after the Expiration Date. In the event
that the Company or a Subsidiary is obligated to purchase shares of Common
Stock pursuant to any such tender offer or exchange offer, but the Company or
such Subsidiary is permanently prevented by applicable law from effecting any
such purchases, or all such purchases are rescinded, then the Conversion Rate
shall again be adjusted to be the Conversion Rate which would then be in effect
if such tender offer or exchange offer had not been made. If the application of
this Section 10.05(e) to any
tender offer or exchange offer would result in a decrease in the Conversion
Rate, no adjustment shall be made for such tender offer or exchange offer under
this Section 10.05(e).

(f)            In
addition to the foregoing adjustments in subsections
(a), (b), (c), (d) and
(e) above, the Company, from
time to time and to the extent permitted by law and the continued listing
requirements of the Nasdaq National Market, may increase the Conversion Rate by
any amount for a period of at least twenty (20) days or such longer period as
may be permitted or required by law, if the Board of Directors has made a
determination, which determination shall be conclusive, that such increase
would be in the best interests of the Company. Such Conversion Rate increase shall
be irrevocable during such period. The Company shall give notice to the Trustee
and cause notice of such increase to be mailed to each Holder of Securities at
such Holder’s address as the same appears on the registry books of the
Registrar, at least fifteen (15) days prior to the date on which such increase
commences.

(g)           For
the purpose of any computation under subsections
(a), (b), (c) or  (d) above of this Section 10.05,
the current market price per share of Common Stock on any date shall be deemed
to be the average of the Closing Sale Prices for

 52
 

 

the ten (10) consecutive Trading Days ending on, but excluding,
the earlier of such date and the Ex Date with respect to the issuance or
distribution requiring such computation; provided,
however, that such current market
price per share of Common Stock shall be appropriately adjusted by the Company,
in its good faith determination, to
account for any adjustment, pursuant hereto, to the Conversion Rate that shall
become effective, or any event requiring, pursuant hereto, an adjustment to the
Conversion Rate where the Ex Date of such event occurs, at any time during the
period that begins on, and includes, the first day of such ten (10) consecutive
Trading Days and ends on, and includes, the date when the adjustment to the
Conversion Rate on account of the event requiring the computation of such
current market price becomes effective.

The term “Ex
Date,” (i) when used with respect to any issuance or
distribution, means the first date on which the Common Stock trades the regular
way on the relevant exchange or in the relevant market from which the Closing
Sale Price was obtained without the right to receive such issuance or
distribution, (ii) when used with respect to any subdivision or
combination of shares of Common Stock, means the first date on which the Common
Stock trades the regular way on such exchange or in such market after the time
at which such subdivision or combination becomes effective, and (iii) when
used with respect to any tender offer or exchange offer means the first date on
which the Common Stock trades the regular way on such exchange or in such
market after the expiration time of such tender offer or exchange offer (as it
may be amended or extended). For purposes of determining the Ex Date with
respect to an issuance or distribution under this Indenture, the Company may
conclusively assume (and such assumption shall be binding upon the Holders)
that purchases and sales of the relevant security with respect to which such
issuance or distribution is being made will settle based on the customary
settlement cycle for purchases or sales of such security.

Unless the context requires otherwise, the
term “record date” means, 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).

10.06       NO ADJUSTMENT.

Notwithstanding anything
herein or in the Securities to the contrary, in no event shall the Conversion
Rate be adjusted pursuant to this Indenture or the Securities to the extent
such adjustment shall reduce the Conversion Price to an amount that is less
than the par value per share of Common Stock.

 53
 

 

No adjustment in the
Conversion Rate pursuant to Section 10.05
shall be required until cumulative adjustments amount to one percent (1%) or
more of the Conversion Rate as last adjusted (or, if never adjusted, the
initial Conversion Rate); provided, however,
that any adjustments to the Conversion Rate which by reason of this Section 10.06 are not required to be made shall be
carried forward and taken into account in any subsequent adjustment to the
Conversion Rate; provided further, that if a
Fundamental Change or Make-Whole Fundamental Change occurs, or if the
Securities shall become convertible pursuant to Section 10.01(A)(iii) or
Section 10.01(A)(iv), then, in
each case, any adjustments to the Conversion Rate that have been, and at such
time remain, deferred pursuant to this Section 10.06
shall be given effect, and such adjustments, if any, shall no longer be carried
forward and taken into account in any subsequent adjustment to the Conversion
Rate. All calculations under this Article X
shall be made to the nearest cent or to the nearest one-millionth of a share,
as the case may be.

Notwithstanding anything
herein or in the Securities to the contrary, if any rights, options or warrants
issued by the Company and requiring an adjustment to the Conversion Rate in
accordance with Section 10.05 are only
exercisable upon the occurrence of certain triggering events, then the
Conversion Rate will not be adjusted as provided in Section 10.05
until the earliest of such triggering event occurs. Upon the expiration,
termination or redemption of any such rights, options or warrants without the
exercise of such rights, options or warrants, the Conversion Rate then in
effect shall be adjusted immediately to the Conversion Rate which would have
been in effect at the time of such expiration, termination or redemption had
such rights, options or warrants, to the extent outstanding immediately prior
to such expiration, termination or redemption, never been issued.

If any dividend or
distribution is declared and the Conversion Rate is adjusted pursuant to Section 10.05 on account of such dividend or
distribution, but such dividend or distribution is thereafter not paid or made,
the Conversion Rate shall again be adjusted to the Conversion Rate which would
then be in effect had such dividend or distribution not been declared.

No adjustment to the
Conversion Rate need be made pursuant to Section 10.05
for a transaction if each Holder is to participate in the transaction, at
substantially the same time that holders of Common Stock participate in such
transaction, without conversion as if such Holder held a number of shares of
Common Stock equal to a fraction whose numerator is the product of the
Conversion Rate in effect at the Ex Date or effective date, as applicable, of
the transaction (without giving effect to any adjustment pursuant to Section 10.05 on account of such transaction) and the
aggregate principal amount of Securities held by such Holder and whose
denominator is one thousand (1,000).

Notwithstanding anything
herein to the contrary, in no event shall the Conversion Rate be increased
pursuant to Section 10.05(b), Section 10.05(c), Section 10.05(d) or
Section 10.05(e) to the
extent, but only to the extent, such increase shall cause the Conversion Rate
applicable to such Security to exceed 36.7107 shares per $1,000 principal
amount (the “BCF Adjustment Cap”); provided, however, that
the BCF Adjustment Cap shall be adjusted in the same manner in which the
Conversion Rate is to be adjusted pursuant to this Article X
for stock splits and combinations, stock dividends, reclassifications and
similar events.

 54
 

 

10.07       OTHER ADJUSTMENTS.

In the event that, as a
result of an adjustment made pursuant to Section 10.05
hereof, the Holder of any Security thereafter surrendered for conversion shall
become entitled to receive any shares of Capital Stock other than shares of
Common Stock, thereafter the Conversion Rate of such other shares so receivable
upon conversion of any Security shall be subject to adjustment from time to
time in a manner and on terms as nearly equivalent as practicable to the
provisions with respect to Common Stock contained in this Article X.

10.08       ADJUSTMENTS FOR TAX PURPOSES.

Except as prohibited by
law the Company may (but is not obligated to) make such increases in the
Conversion Rate, in addition to those required by Section 10.05
hereof, as it determines to be advisable in order that any stock dividend,
subdivision of shares, distribution of rights to purchase stock or securities
or distribution of securities convertible into or exchangeable for stock made
by the Company or to its stockholders will not be taxable to the recipients
thereof or in order to diminish any such taxation.

10.09       NOTICE OF ADJUSTMENT.

Whenever the Conversion
Rate is adjusted, the Company shall promptly mail to Holders at the addresses
appearing on the Registrar’s books a notice of the adjustment and file with the
Trustee an Officer’s Certificate briefly stating the facts requiring the
adjustment and the manner of computing it. The certificate shall be conclusive
evidence of the correctness of such adjustment.

10.10       NOTICE OF CERTAIN TRANSACTIONS.

In the event that:

(1)           the
Company takes any action, or becomes aware of any event, which would require an
adjustment in the Conversion Rate,

(2)           the
Company takes any action that would require a supplemental indenture pursuant
to Section 10.11, or

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

the Company shall mail to
Holders at the addresses appearing on the Registrar’s books and the Trustee a
written notice stating the proposed record, effective or expiration date, as
the case may be, of any transaction referred to in clause
(1), (2) or
(3) of this Section 10.10.
The Company shall mail such notice at least twenty (20) calendar days (or, in
the case of any event that would require an adjustment in the Conversion Rate
pursuant to Sections 10.05(b), 10.05(c), 10.05(d) or
10.05(e), forty five (45) calendar
days) before such date; however, 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 10.10.

 55
 

 

10.11       EFFECT OF RECLASSIFICATIONS, CONSOLIDATIONS, MERGERS,
BINDING SHARE EXCHANGES OR SALES ON CONVERSION PRIVILEGE.

If any of the following
shall occur, namely: (i) any reclassification or change in the Common
Stock issuable upon conversion of Securities (other than a change only 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 of Common Stock), (ii) any
consolidation, merger or binding share exchange to which the Company is a party
other than a merger in which the Company is the continuing Person and which
does not result in any reclassification of, or change (other than a change in
name, or 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, the Common Stock
or (iii) any sale, transfer, lease, conveyance or other disposition of all
or substantially all of the property or assets of the Company, in each case
pursuant to which the Common Stock would be converted into or exchanged for, or
would constitute solely the right to receive, cash, securities or other
property, then the Company or such successor or purchasing Person, as the case
may be, shall execute and deliver to the Trustee a supplemental indenture in
form reasonably satisfactory to the Trustee providing that, at and after the
effective time of such reclassification, change, consolidation, merger, binding
share exchange, sale, transfer, lease, conveyance or disposition, the Holder of
each Security then outstanding shall have the right to convert such Security
(if otherwise convertible pursuant to this Article X)
into the kind and amount of cash, securities or other property (collectively, “Reference Property”) receivable upon such reclassification,
change, consolidation, merger, binding share exchange, sale, transfer, lease,
conveyance or disposition by a holder of a number of shares of Common Stock
equal to a fraction whose denominator is one thousand (1,000) and whose
numerator is the product of the principal amount of such Security and the
Conversion Rate in effect immediately prior to such reclassification, change,
consolidation, merger, binding share exchange, sale, transfer, lease,
conveyance or disposition (assuming, if holders of Common Stock shall have the
opportunity to elect the form of consideration to receive pursuant to such
reclassification, change, consolidation, merger, binding share exchange, sale,
transfer, lease, conveyance or disposition, that the Collective Election shall
have been made with respect to such election); provided,
however, that at and after the effective
time of such reclassification, change, consolidation, merger, binding share
exchange, sale, transfer, lease, conveyance or disposition, the Principal
Return payable hereunder upon conversion of such Security shall continue to be
payable in cash and the Daily Conversion Value and Daily Net Shares shall be
calculated based on the value of the Reference Property instead of the
Volume-Weighted Average Price per share of Common Stock; provided  further, that if any portion of such Reference Property
consists of common stock listed on a national securities exchange or
quoted on an automated quotation system, then the “value” of such portion of
such Reference Property shall be determined on the basis of the Volume Weighted
Average Price of such common stock (determined as if such common stock were
Common Stock for purposes of the definition of “Volume Weighted Average Price”
and as if the issuer of such common stock were the Company for purposes of the
definition of “Trading Day”).

If holders of Common
Stock shall have the opportunity to elect the form of consideration to receive
pursuant to such reclassification, change, consolidation, merger, binding share
exchange, sale, transfer, lease, conveyance or disposition, then the Company
shall make adequate provision to give Holders, treated as a single class, a
reasonable opportunity to elect (the “Collective Election”)
the form of such consideration for purposes of determining the

 56
 

 

composition of the
Reference Property referred to in the immediately preceding sentence, and once
such election is made, such election shall apply to all Holders after the
effective time of such reclassification, change, consolidation, merger, binding
share exchange, sale, transfer, lease, conveyance or disposition. Such
Collective Election shall be determined based on the weighted average of the
elections made by Holders of the Securities who participate in such
determination, shall be subject to any limitations to which all of the holders
of Common Stock are subject, such as pro-rata reductions applicable to any
portion of the consideration payable in such reclassification, change,
consolidation, merger, binding share exchange, sale, transfer, lease,
conveyance or disposition, and shall be conducted in such a manner as to be
completed by the close of business on the actual effective date of such
reclassification, change, consolidation, merger, binding share exchange, sale,
transfer, lease, conveyance or disposition. The Company shall provide notice of
the opportunity to determine the form of such consideration, as well as notice
of the determination made by Holders, by issuing a press release and providing
a copy of such notice to the Trustee. The Company shall not become a party to
any reclassification, change, consolidation, merger, binding share exchange,
sale, transfer, lease, conveyance or disposition, the terms of which are
inconsistent with this paragraph and the immediately preceding paragraph.

The supplemental
indenture referred to in the first sentence of this Section 10.11
shall provide for adjustments of the Conversion Rate which shall be as nearly
equivalent as may be practicable to the adjustments of the Conversion Rate
provided for in this Article X.
The foregoing, however, shall not in any way affect the right a Holder of a
Security may otherwise have, pursuant to Section 10.05(b) or
Section 10.13, to receive rights
or warrants upon conversion of a Security. If, in the case of any such
consolidation, merger, binding share exchange, sale, transfer, lease,
conveyance or disposition, the stock or other securities and property
(including cash) receivable thereupon by a holder of Common Stock includes
shares of stock or other securities and property of a Person other than the
successor or purchasing Person, as the case may be, in such consolidation,
merger, binding share exchange, sale, transfer, lease, conveyance or
disposition, 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 in good
faith shall reasonably determine necessary by reason of the foregoing (which
determination shall be described in a Board Resolution). The provisions of this
Section 10.11 shall similarly
apply to successive consolidations, mergers, binding share exchanges, sales,
transfers, leases, conveyances or dispositions.

In the event the Company
shall execute a supplemental indenture pursuant to this Section 10.11,
the Company shall promptly file with the Trustee an Officer’s Certificate
briefly stating the reasons therefor, the kind or amount of shares of stock or
securities or property (including cash) receivable by Holders of the Securities
upon the conversion of their Securities after any such reclassification,
change, consolidation, merger, binding share exchange, sale, transfer, lease,
conveyance or disposition and any adjustment to be made with respect thereto.

10.12       TRUSTEE’S DISCLAIMER.

The Trustee has no duty
to determine when an adjustment under this Article X
should be made, how it should be made or what such adjustment should be, but
may accept as conclusive evidence of the correctness of any such adjustment,
and shall be protected in relying upon, the

 57
 

 

Officer’s Certificate
with respect thereto which the Company is obligated to file with the Trustee
pursuant to Section 10.09 hereof. 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 failure by the Company to comply with any provisions of
this Article X.

The Trustee shall not be
under any responsibility to determine the correctness of any provisions
contained in any supplemental indenture executed pursuant to Section 10.11, but may accept as conclusive evidence of
the correctness thereof, and shall be protected in relying upon, the Officer’s
Certificate with respect thereto which the Company is obligated to file with
the Trustee pursuant to Section 10.11
hereof.

10.13       RIGHTS DISTRIBUTIONS PURSUANT TO STOCKHOLDERS’ RIGHTS PLANS.

Upon conversion of any
Security or a portion thereof, the Company shall make provision such that the
Holder thereof shall, to the extent such Holder is to receive shares of Common
Stock upon such conversion, receive, in addition to, and concurrently with the
delivery of, the consideration otherwise payable hereunder upon such
conversion, the rights described in the Rights Agreement (as the same may be
amended, supplemented or replaced) and any future stockholders’ rights plan(s) of
the Company then in effect; provided, however, that no such provision need be made if the rights
have been separated from the Common Stock prior to the time of such conversion,
but the provisions of Section 10.05(b) shall
apply.

10.14       INCREASED CONVERSION RATE APPLICABLE TO CERTAIN NOTES
SURRENDERED IN CONNECTION WITH MAKE-WHOLE FUNDAMENTAL CHANGES.

(A)          Notwithstanding
anything herein to the contrary, the Conversion Rate applicable to each
Security that is surrendered for conversion, in accordance with this Article X, at any time during the
period (the “Make-Whole Conversion Period”)
that begins on, and includes, the
date that is forty five (45) calendar days prior to the date originally
announced by the Company as the anticipated effective date of a Make-Whole
Fundamental Change (which anticipated effective date the Company shall
disclose, in good faith, in the written notice and public announcement referred
to in Section 10.14(D)) and
ends on, and includes, the date
that is thirty (30) Business Days after the actual effective date of such
Make-Whole Fundamental Change (or, if such Make-Whole Fundamental Change also
constitutes a Fundamental Change, the Fundamental Change Repurchase Date
applicable to such Fundamental Change) shall be increased to an amount equal to
the Conversion Rate that would, but for this Section 10.14, otherwise apply to such Security pursuant to this Article X, plus an amount equal to the Make-Whole Applicable Increase; provided, however, that
such increase to the Conversion Rate shall not apply if such Make-Whole
Fundamental Change is announced by the Company but shall not be consummated.

The
additional consideration payable hereunder on account of any Make-Whole
Applicable Increase with
respect to a Security surrendered for conversion is herein referred to as the “Make-Whole Consideration.” 
For avoidance of doubt, the amount of the Make-Whole Consideration due
upon the conversion of a Security shall be based on the Cash Settlement Averaging Period and Volume-Weighted Average
Prices applicable to such conversion
pursuant to Section 10.02.

 58

 

 

The Make-Whole
Consideration due upon a conversion of a Security by a Holder shall be paid as
soon as practicable, but in no event later than third Business Day after the
later of (1) the date such Holder surrenders such Security for such
conversion; (2) the last Trading Day in the Cash Settlement Averaging
Period applicable to such conversion; and (3) the Effective Date of the
applicable Make-Whole Fundamental Change.

(B)           As used herein, “Make-Whole Applicable Increase” shall mean,
with respect to a Make-Whole Fundamental Change, the amount, set forth in the
following table, which corresponds to the effective date of such Make-Whole
Fundamental Change (the “Effective Date”)
and the Applicable Price of such Make-Whole Fundamental Change:

 

	
   

  	
   

  	
  Effective Date

  	
   

  
	
  Applicable Price

  	
   

  	
  June 28,

  2006

  	
   

  	
  July 15,

  2007

  	
   

  	
  July 15,

  2008

  	
   

  	
  July 15,

  2009

  	
   

  	
  July 15,

  2010

  	
   

  	
  July 15,

  2011

  	
   

  	
  July 15,

  2012

  	
   

  	
  July 15,

  2013

  	
   

  
	
  $ 27.24

  	
   

  	
  7.49

  	
   

  	
  7.76

  	
   

  	
  7.69

  	
   

  	
  7.59

  	
   

  	
  7.44

  	
   

  	
  7.23

  	
   

  	
  6.93

  	
   

  	
  7.04

  	
   

  
	
  $ 30.00

  	
   

  	
  6.15

  	
   

  	
  6.32

  	
   

  	
  6.17

  	
   

  	
  5.97

  	
   

  	
  5.70

  	
   

  	
  5.31

  	
   

  	
  4.69

  	
   

  	
  3.64

  	
   

  
	
  $ 35.00

  	
   

  	
  4.46

  	
   

  	
  4.52

  	
   

  	
  4.31

  	
   

  	
  4.03

  	
   

  	
  3.65

  	
   

  	
  3.12

  	
   

  	
  2.29

  	
   

  	
  0

  	
   

  
	
  $ 40.00

  	
   

  	
  3.36

  	
   

  	
  3.37

  	
   

  	
  3.14

  	
   

  	
  2.84

  	
   

  	
  2.45

  	
   

  	
  1.92

  	
   

  	
  1.15

  	
   

  	
  0

  	
   

  
	
  $ 45.00

  	
   

  	
  2.61

  	
   

  	
  2.60

  	
   

  	
  2.37

  	
   

  	
  2.09

  	
   

  	
  1.73

  	
   

  	
  1.26

  	
   

  	
  0.64

  	
   

  	
  0

  	
   

  
	
  $ 50.00

  	
   

  	
  2.08

  	
   

  	
  2.06

  	
   

  	
  1.85

  	
   

  	
  1.59

  	
   

  	
  1.27

  	
   

  	
  0.88

  	
   

  	
  0.41

  	
   

  	
  0

  	
   

  
	
  $ 55.00

  	
   

  	
  1.70

  	
   

  	
  1.68

  	
   

  	
  1.48

  	
   

  	
  1.25

  	
   

  	
  0.98

  	
   

  	
  0.66

  	
   

  	
  0.30

  	
   

  	
  0

  	
   

  
	
  $ 60.00

  	
   

  	
  1.41

  	
   

  	
  1.39

  	
   

  	
  1.22

  	
   

  	
  1.02

  	
   

  	
  0.78

  	
   

  	
  0.52

  	
   

  	
  0.25

  	
   

  	
  0

  	
   

  
	
  $ 65.00

  	
   

  	
  1.18

  	
   

  	
  1.17

  	
   

  	
  1.02

  	
   

  	
  0.85

  	
   

  	
  0.65

  	
   

  	
  0.43

  	
   

  	
  0.21

  	
   

  	
  0

  	
   

  
	
  $ 70.00

  	
   

  	
  1.01

  	
   

  	
  1.00

  	
   

  	
  0.87

  	
   

  	
  0.72

  	
   

  	
  0.55

  	
   

  	
  0.37

  	
   

  	
  0.19

  	
   

  	
  0

  	
   

  
	
  $ 75.00

  	
   

  	
  0.87

  	
   

  	
  0.87

  	
   

  	
  0.75

  	
   

  	
  0.62

  	
   

  	
  0.47

  	
   

  	
  0.32

  	
   

  	
  0.18

  	
   

  	
  0

  	
   

  
	
  $ 80.00

  	
   

  	
  0.75

  	
   

  	
  0.76

  	
   

  	
  0.65

  	
   

  	
  0.54

  	
   

  	
  0.41

  	
   

  	
  0.29

  	
   

  	
  0.16

  	
   

  	
  0

  	
   

  
	
  $ 85.00

  	
   

  	
  0.66

  	
   

  	
  0.67

  	
   

  	
  0.58

  	
   

  	
  0.48

  	
   

  	
  0.37

  	
   

  	
  0.26

  	
   

  	
  0.15

  	
   

  	
  0

  	
   

  
	
  $ 90.00

  	
   

  	
  0.58

  	
   

  	
  0.59

  	
   

  	
  0.51

  	
   

  	
  0.42

  	
   

  	
  0.33

  	
   

  	
  0.24

  	
   

  	
  0.14

  	
   

  	
  0

  	
   

  
	
  $ 95.00

  	
   

  	
  0.51

  	
   

  	
  0.53

  	
   

  	
  0.46

  	
   

  	
  0.38

  	
   

  	
  0.30

  	
   

  	
  0.22

  	
   

  	
  0.13

  	
   

  	
  0

  	
   

  
	
  $100.00

  	
   

  	
  0.45

  	
   

  	
  0.47

  	
   

  	
  0.41

  	
   

  	
  0.34

  	
   

  	
  0.27

  	
   

  	
  0.20

  	
   

  	
  0.12

  	
   

  	
  0

  	
   

  

 

provided,
however, that:

(i)      if
the actual Applicable Price of such Make-Whole Fundamental Change is between
two (2) prices listed in the table above under the column titled “Applicable
Price,” or if the actual Effective Date of such Make-Whole Fundamental Change
is between two dates listed in the table above in the row immediately below the
title “Effective Date,” then the Make-Whole Applicable Increase for such Make-Whole Fundamental
Change shall be determined by linear interpolation between the Make-Whole Applicable Increases
set forth for such two prices, or for such two dates based on a three hundred
and sixty five (365) day year, as applicable;

(ii)     if
the actual Applicable Price of such Make-Whole Fundamental Change is greater
than $100.00 per share (subject to adjustment as provided in Section 10.14(B)(iii)), or if the
actual Applicable Price of such Make-Whole Fundamental Change is less than
$27.24 per share (subject to adjustment as provided in Section 10.14(B)(iii)), then the Make-Whole Applicable Increase
shall be equal to zero (0);

(iii)    if
an event occurs that requires, pursuant to this Article X (other than solely pursuant to this Section 10.14), an adjustment to the
Conversion Rate, then, on the date and at the time such adjustment is so
required to be made, each price set forth in the table above under the column
titled “Applicable Price” shall be deemed to be adjusted so that such price, at
and after such time, shall be equal to the product of

 59
 

 

(1) such price as in effect immediately
before such adjustment to such price and (2) a fraction whose numerator is
the Conversion Rate in effect immediately before such adjustment to the
Conversion Rate and whose denominator is the Conversion Rate to be in effect,
in accordance with this Article X,
immediately after such adjustment to the Conversion Rate;

(iv)    each
Make-Whole
Applicable Increase amount set forth in the table above shall be
adjusted in the same manner in which, and for the same events for which, the
Conversion Rate is to be adjusted pursuant to Section 10.05
through Section 10.13; and

(v)     in
no event shall the Conversion Rate applicable to any Security be increased
pursuant to this Section 10.14
to the extent, but only to the extent, such increase shall cause the Conversion
Rate applicable to such Security to exceed 36.7107 shares per $1,000 principal
amount (the “BCF Make-Whole Cap”);
provided, however,
that the BCF Make-Whole Cap shall be adjusted in the same manner in which, and
for the same events for which, the Conversion Rate is to be adjusted pursuant
to this Article X.

(C)           As used herein, “Applicable Price” shall have the following
meaning with respect to a Make-Whole Fundamental Change: (a) if such
Make-Whole Fundamental Change constitutes a Common Stock Change Make-Whole
Fundamental Change and the consideration (excluding cash payments for
fractional shares or pursuant to statutory appraisal rights) for the Common
Stock in such Make-Whole Fundamental Change consists solely of cash, then the “Applicable
Price” with respect to such Make-Whole Fundamental Change shall be equal to the
cash amount paid per share of Common Stock in such Make-Whole Fundamental
Change; (b) if such Make-Whole Fundamental Change constitutes an Asset
Sale Make-Whole Fundamental Change and the consideration paid for the property
and assets of the Company consists solely of cash, then the “Applicable Price”
with respect to such Make-Whole Fundamental Change shall be equal to the cash
amount paid for the property and assets of the Company, expressed as an amount
per share of Common Stock outstanding on the Effective Date of such Make-Whole
Fundamental Change; and (c) in all other circumstances, the “Applicable
Price” with respect to such Make-Whole Fundamental Change shall be equal to the
average of the Closing Sale Prices per share of Common Stock for the five (5) consecutive
Trading Days immediately preceding the Effective Date of such Make-Whole
Fundamental Change, which average shall be appropriately adjusted by the Company, in its good
faith determination, to account for
any adjustment, pursuant hereto, to the Conversion Rate that shall become
effective, or any event requiring, pursuant hereto, an adjustment to the
Conversion Rate where the Ex Date of such event occurs, at any time during such
five (5) consecutive Trading Days.

(D)          At least forty five (45) calendar
days before the first anticipated effective date of each proposed Make-Whole
Fundamental Change, the Company shall mail to each Holder, in accordance with Section 11.02, written notice of, and
shall publicly announce, through a reputable national newswire service, the
anticipated effective date of such proposed Make-Whole Fundamental Change. Each
such notice and announcement shall also state that, in connection with such Make-Whole
Fundamental Change, the Company shall increase, in accordance herewith, the
Conversion Rate applicable to Securities entitled as provided herein to such

 60
 

 

increase (along with a description of how
such increase shall be calculated and the time periods during which Securities
must be surrendered in order to be entitled to such increase). No later than the third Business Day
after the Effective Date of each Make-Whole Fundamental Change, the
Company shall mail, in accordance with Section 11.02,
written notice of, and shall publicly announce, through a reputable national
newswire service, such Effective Date and the Make-Whole Applicable Increase applicable to such Make-Whole
Fundamental Change.

(E)           For avoidance of doubt, the
provisions of this Section 10.14
shall not affect or diminish the Company’s obligations, if any, pursuant to Article IV with respect to a
Make-Whole Fundamental Change.

(F)           Nothing in this Section 10.14 shall prevent an
adjustment to the Conversion Rate pursuant to Section 10.05
in respect of a Make-Whole Fundamental Change.

XI.           MISCELLANEOUS

11.01       TRUST INDENTURE ACT CONTROLS.

If any provision
of this Indenture limits, qualifies or conflicts with another provision which
is required to be included in this Indenture by the TIA, the required provision
of the TIA shall control.

11.02       NOTICES.

Any notice or
communication by the Company or the Trustee to the other shall be deemed to be
duly given if made in writing and delivered:

(A)          by hand (in which case such notice
shall be effective upon delivery);

(B)           by facsimile (in which case such
notice shall be effective upon receipt of confirmation of good transmission
thereof); or

(C)           by overnight delivery by a nationally
recognized courier service (in which case such notice shall be effective on the
Business Day immediately after being deposited with such courier service),

in
each case to the recipient party’s address or facsimile number, as applicable,
set forth in this Section 11.02.
The Company or the Trustee by notice to the other may designate additional or
different addresses or facsimile numbers for subsequent notices or
communications.

Any notice or
communication to a Holder shall be mailed to its address shown on the register
kept by the Registrar. Failure to mail a notice or communication to a Holder or
any defect in it shall not affect its sufficiency with respect to other
Holders.

If a notice or
communication is mailed in the manner provided above, it is duly given, whether
or not the addressee receives it.

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If the Company
mails a notice or communication to Holders, it shall mail a copy to the Trustee
and each Securities Agent at the same time. If the Trustee or the Securities
Agent is required, pursuant to the express terms of this Indenture or the
Securities, to mail a notice or communication to Holders, the Trustee or the
Securities Agent, as the case may be, shall also mail a copy of such notice or
communication to the Company.

All notices or
communications shall be in writing.

The Company’s
address is:

MedImmune, Inc.

One MedImmune Way

Gaithersburg, MD 20878

Attn: Vice President, Finance

Facsimile: 301-398-4470

with a copy to:

MedImmune, Inc.

One MedImmune Way

Gaithersburg, MD 20878

Attn: General Counsel

Facsimile: 301-398-4625

The Trustee’s
address is:

The Bank of New York

101 Barclay Street

Floor 8 West

New York, NY 10286

Attn: Corporate Trust Administration

Facsimile: 212-815-3272

11.03       COMMUNICATION BY HOLDERS WITH OTHER HOLDERS.

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

11.04       CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT.

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:

(i)         an Officer’s Certificate stating that,
in the opinion of the signatories to such Officer’s Certificate, all conditions
precedent, if any, provided for in this Indenture relating to the proposed
action have been complied with; and

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(ii)        an Opinion of Counsel stating that, in
the opinion of such counsel, all such conditions precedent have been complied
with.

Each signatory to
an Officer’s Certificate or an Opinion of Counsel may (if so stated) rely,
effectively, upon an Opinion of Counsel as to legal matters and an Officer’s
Certificate or certificates of public officials as to factual matters if such
signatory reasonably and in good faith believes in the accuracy of the document
relied upon.

11.05       STATEMENTS REQUIRED IN CERTIFICATE OR OPINION.

Each Officer’s
Certificate or Opinion of Counsel with respect to compliance with a condition
or covenant provided for in this Indenture shall include:

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

(ii)        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;

(iii)       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

(iv)       a statement as to whether or not, in the
opinion of such person, such condition or covenant has been complied with.

11.06       RULES BY TRUSTEE AND AGENTS.

The Trustee may
make reasonable rules for action by or at a meeting of Holders. The
Registrar, Paying Agent or Conversion Agent may make reasonable rules and
set reasonable requirements for their respective functions.

11.07       LEGAL HOLIDAYS.

A “Legal Holiday” is a Saturday, a Sunday or a day on which
banking institutions are not required to be open in the City of New York, in
the State of New York. If a payment date is a Legal Holiday at a place of
payment, payment may be made at that place on the next succeeding day that is
not a Legal Holiday, and no interest shall accrue on that payment for the
intervening period.

A “Business Day” is a day other than a Legal Holiday.

11.08       DUPLICATE ORIGINALS.

The parties may
sign any number of copies of this Indenture. Each signed copy shall be an
original, but all of them together represent the same agreement. Delivery of an
executed

 63
 

 

counterpart
by facsimile shall be effective as delivery of a manually executed counterpart
thereof.

11.09       GOVERNING LAW.

The laws of the
State of New York, without regard to principles of conflicts of law, shall
govern this Indenture and the Securities.

11.10       NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS.

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

11.11       SUCCESSORS.

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

11.12       SEPARABILITY.

In case any
provision in this Indenture or in the Securities shall be invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby and a Holder shall have no claim
therefor against any party hereto.

11.13       TABLE OF CONTENTS, HEADINGS, ETC.

The Table of
Contents, Cross-Reference Table 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.

11.14       CALCULATIONS IN RESPECT OF THE SECURITIES.

The Company and
its agents (including, without limitation, the Bid Solicitation Agent) shall
make all calculations under this Indenture and the Securities in good faith. In
the absence of manifest error, such calculations shall be final and binding on
all Holders. The Company shall provide a copy of such calculations to the
Trustee as required hereunder, and, absent such manifest error, the Trustee
shall be entitled to conclusively rely on the accuracy of any such calculation
without independent verification.

11.15       NO PERSONAL LIABILITY OF DIRECTORS, OFFICERS,
EMPLOYEES OR STOCKHOLDERS.

None of the Company’s past, present or future directors, officers,
employees or stockholders, as such, shall have any liability for any of the
Company’s obligations under this Indenture or the Securities or for any claim
based on, or in respect or by reason of, such obligations or their creation. By
accepting a Security, each holder waives and releases all such liability. This
waiver and release is part of the consideration for the issue of the
Securities.

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11.16       FORCE MAJEURE.

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

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

 65

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

	
  

  	
  MEDIMMUNE, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/: Lota Zoth

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
  Lota Zoth

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Senior Vice President and Chief Financial Officer

  

 

 

 

	
  

  	
  THE BANK OF NEW YORK

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/: Cheryl Clarke

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
  Cheryl Clarke

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President

  

 

 2

 

 

EXHIBIT A

[Face
of Security]

MEDIMMUNE,
INC.

Certificate No. _______

[INSERT PRIVATE PLACEMENT
LEGEND AND GLOBAL SECURITY LEGEND AS REQUIRED]

1.625% Convertible
Senior Note due 2013

CUSIP No. ____________

MedImmune, Inc., a
Delaware corporation (the “Company”), for
value received, hereby promises to pay to Cede & Co., or its
registered assigns, the principal sum of _____________________ dollars
($__________) on July 15, 2013 and to pay interest thereon, as provided on
the reverse hereof, until the principal and any unpaid and accrued interest are
paid or duly provided for.

Interest Payment Dates: January 15
and July 15, with the first payment to be made on January 15, 2007.

Record Dates: January 1
and July 1.

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

IN WITNESS WHEREOF,
MedImmune, Inc. has caused this instrument to be duly signed.

 

	
  

  	
   

  	
   

  	
   

  	
  MEDIMMUNE, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name: 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 A-1
 

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

	
  THE BANK OF NEW YORK, as Trustee

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Signatory

  	
   

  	
   

  	
   

  

 

	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 A-2
 

 

 

[REVERSE OF SECURITY]

 

MEDIMMUNE, INC.

1.625% Convertible Senior Note
due 2013

 

1.             Interest.
MedImmune, Inc., a Delaware corporation (the “Company”),
promises to pay interest on the principal amount of this Security at the rate per annum shown above. The Company will pay interest,
payable semi-annually in arrears, on January 15 and July 15 of each
year, with the first payment to be made on January 15, 2007. Interest on
the Securities will accrue on the principal amount from, and including, the
most recent date to which interest has been paid or provided for or, if no
interest has been paid, from, and including, June 28, 2006, in each case
to, but excluding, the next interest payment date or Maturity Date, as the case
may be. Interest will be computed on the basis of a 360-day year of
twelve 30-day months.

2.             Maturity.
The Securities will mature on July 15, 2013.

3.             Method of
Payment. Except as provided in the Indenture (as defined below), the
Company will pay interest on the Securities to the persons who are Holders of
record of Securities at the close of business on the record date set forth on
the face of this Security next preceding the applicable interest payment date. Holders
must surrender Securities to a Paying Agent to collect the principal amount or
Fundamental Change Repurchase Price of the Securities, plus, if applicable,
accrued and unpaid interest, if any, payable as herein provided on the Maturity
Date or upon Repurchase Upon Fundamental Change, as the case may be. The
Company will pay, in money of the United States that at the time of payment is
legal tender for payment of public and private debts, all amounts due in cash
with respect to the Securities, which amounts shall be paid (A) in the
case this Security is in global form, by wire transfer of immediately available
funds to the account designated by the Depositary or its nominee; (B) in
the case this Security is held, other than global form, by a Holder of more than
five million dollars ($5,000,000) in aggregate principal amount of Securities,
by wire transfer of immediately available funds to the account specified by
such Holder or, if such Holder does not specify an account, by mailing a check
to the address of such Holder set forth in the register of the Registrar; and (C) in
the case this Security is held, other than global form, by a Holder of five
million dollars ($5,000,000) or less in aggregate principal amount of
Securities, by mailing a check to the address of such Holder set forth in the
register of the Registrar.

4.             Paying
Agent, Registrar, Conversion Agent. Initially, The Bank of New York
(the “Trustee”) will act as Paying Agent,
Registrar, Bid Solicitation Agent and Conversion Agent. The Company may change
any Paying Agent, Registrar, Bid Solicitation Agent or Conversion Agent without
prior notice.

5.             Indenture.
The Company issued the Securities under an Indenture dated as of June 28,
2006 (the “Indenture”) between the Company
and the Trustee. The terms of the Securities include those stated in the
Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) (the “TIA”) as amended and in effect from time to time. The
Securities are subject to all such terms, and Holders are referred to the
Indenture and the TIA for a statement of such terms. The Securities are general
unsecured

 A-3
 

 

 

senior obligations of the Company limited to
$500,000,000 aggregate principal amount ($575,000,000 if the Initial Purchasers
have elected to exercise in full the Option to purchase up to an additional
$75,000,000 aggregate principal amount of the Securities), except as otherwise
provided in the Indenture (except for Securities issued in substitution for
destroyed, mutilated, lost or stolen Securities). Terms used herein without
definition and which are defined in the Indenture have the meanings assigned to
them in the Indenture.

6.             No Optional
Redemption.

Prior to maturity, the
Securities shall not be subject to redemption at the option of the Company.

7.             Repurchase
at Option of Holder Upon a Fundamental Change. Subject to the terms
and conditions of the Indenture, in the event of a Fundamental Change, each
Holder of the Securities shall have the right, at the Holder’s option, to require
the Company to repurchase such Holder’s Securities including any portion
thereof which is $1,000 in principal amount or any integral multiple thereof on
a date selected by the Company (the “Fundamental Change
Repurchase Date”), which date is no later than thirty five (35)
days, nor earlier than twenty (20) days, after the date on which notice of such
Fundamental Change is mailed in accordance with the Indenture, at a price
payable in cash equal to one hundred percent (100%) of the principal amount of
such Security, plus accrued and unpaid interest to, but excluding, the
Fundamental Change Repurchase Date; provided, however, that if such Fundamental Change Repurchase Date is
after a record date for the payment of an installment of interest and on or
before the related interest payment date, then the accrued and unpaid interest,
if any, to, but excluding, such interest payment date will be paid on such
interest payment date to the Holder of record of such Securities at the close
of business on such record date, and the Holder surrendering such Securities
for repurchase will not be entitled to any such accrued and unpaid interest
unless such Holder was also the Holder of record of such Securities at the
close of business on such record date.

8.             Conversion.

The Securities
shall be convertible into cash, and if applicable, shares of Common Stock if
and to the extent the conditions therefor specified the Indenture are
satisfied.

To convert a
Security, a Holder must (1) complete and sign the Conversion Notice, with
appropriate signature guarantee, on the back of the Security, (2) surrender
the Security to a Conversion Agent, (3) furnish appropriate endorsements
and transfer documents if required by the Registrar or Conversion Agent, (4) pay
the amount of interest, if any, the Holder must pay in accordance with the
Indenture and (5) pay any tax or duty if required pursuant to the
Indenture. A Holder may convert a portion of a Security if the portion is
$1,000 principal amount or an integral multiple of $1,000 principal amount.

Notwithstanding anything herein to the contrary, no
Security may be converted after the close of business on the Business Day
immediately preceding the Maturity Date.

 A-4
 

 

 

Upon conversion of a
Security, the Holder thereof shall be entitled to receive the cash and, if
applicable, shares of Common Stock payable upon conversion in accordance with Article X of the Indenture.

The initial Conversion
Rate is 29.9679 shares of Common Stock per $1,000 principal amount of
Securities (which results in an effective initial Conversion Price of
approximately $33.37 per share) subject to adjustment in the event of certain
circumstances as specified in the Indenture. The Company will deliver cash in
lieu of any fractional share.

The Conversion Rate applicable
to each Security that is surrendered for conversion, in accordance with the
Securities and Article X of the Indenture,
at any time during the Make-Whole Conversion Period with respect to a
Make-Whole Fundamental Change shall be increased to an amount equal to the Conversion Rate that would,
but for Section 10.14 of the Indenture, otherwise apply to
such Security pursuant to Article X
of the Indenture, plus an amount
equal to the Make-Whole Applicable Increase; provided, however,
that such increase to the Conversion Rate shall not apply if such Make-Whole
Fundamental Change is announced by the Company but shall not be consummated.

9.             Denominations,
Transfer, Exchange. The Securities are in registered form, without
coupons, in denominations of $1,000 principal amount and integral multiples of
$1,000 principal amount. The transfer of Securities may be registered and
Securities may be exchanged as provided in the Indenture. The Registrar may
require a Holder, among other things, to furnish appropriate endorsements and
transfer documents. No service charge shall be made for any such registration
of transfer or exchange, but the Company may require payment of a sum
sufficient to cover any tax or similar governmental charge that may be imposed
in connection with certain transfers or exchanges. The Company or the Trustee,
as the case may be, shall not be required to register the transfer of or
exchange any Security for which a Purchase Notice has been delivered, and not
withdrawn, in accordance with the Indenture, except the unrepurchased portion
of Securities being repurchased in part.

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

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

12.           Amendments, Supplements
and Waivers. Subject to certain exceptions, the Indenture or the
Securities may be amended or supplemented with the consent of the Holders of at
least a majority in aggregate principal amount of the outstanding Securities,
and certain existing Defaults or Events of Default may be waived with the
consent of the Holders of a

 

 A-5
 

 

majority in aggregate principal amount of the
Securities then outstanding. In accordance with the terms of the Indenture, the
Company, with the consent of the Trustee, may amend or supplement this Indenture
or the Securities without notice to or the consent of any Securityholder: (i) to
comply with Sections  5.01
and 10.11 of the Indenture; (ii) to
make any changes or modifications to the Indenture necessary in connection with
the registration of the Securities under the Securities Act pursuant to the
Registration Rights Agreement or the qualification of the Indenture under the
TIA; (iii) to secure the obligations of the Company in respect of the
Securities; (iv) to add to the covenants of the Company described in the
Indenture for the benefit of Securityholders or to surrender any right or power
conferred upon the Company; and (v) to make provisions with respect to
adjustments to the Conversion Rate as required by the Indenture or to increase
the Conversion Rate in accordance with the Indenture. In addition, the Company
and the Trustee may enter into a supplemental indenture without the consent of
Holders of the Securities to (i) cure any ambiguity, defect, omission or
inconsistency in the Indenture in a manner that does not, individually or in
the aggregate with all other changes, adversely affect the rights of any Holder
in any material respect or (ii) conform the Indenture or the Securities to
the description thereof contained in the Offering Memorandum under the caption “Description
of notes.”

13.           Defaults and Remedies.

If an Event of Default
(excluding an Event of Default specified in Section 6.01(viii) or (ix) of the Indenture with respect to the Company (but
including an Event of Default specified in Section 6.01(viii) or (ix) of the Indenture solely with respect to a
Significant Subsidiary of the Company or any group of Subsidiaries that in the
aggregate would constitute a Significant Subsidiary of the Company)) occurs and
is continuing, the Trustee by notice to the Company or the Holders of at least
twenty five percent (25%) in principal amount of the Securities then outstanding
by notice to the Company and the Trustee may declare the Securities to be due
and payable. Upon such declaration, the principal of, and any premium and
accrued and unpaid interest (including any additional interest) on, all
Securities shall be due and payable immediately. If an Event of Default
specified in Section 6.01(viii) or (ix) of the Indenture with respect to the Company (excluding,
for purposes of this sentence, an Event of Default specified in Section 6.01(viii) or (ix) of
the Indenture solely with respect to a Significant Subsidiary of the Company or
any group of Subsidiaries that in the aggregate would constitute a Significant
Subsidiary of the Company) occurs, the principal of, and premium and accrued
and unpaid interest (including any additional interest) on, all the Securities
shall ipso facto become and be immediately due
and payable without any declaration or other act on the part of the Trustee or
any Holder. The Holders of a majority in aggregate principal amount of the
Securities then outstanding by written notice to the Trustee may rescind or
annul an acceleration and its consequences if (A) the rescission would not
conflict with any order or decree, (B) all existing Events of Default, except
the nonpayment of principal, premium or interest (including additional
interest) that has become due solely because of the acceleration, have been
cured or waived and (C) all amounts due to the Trustee under Section 7.07 of the Indenture have been paid.

Holders may not enforce
the Indenture or the Securities except as provided in the Indenture. The
Holders of a majority in aggregate principal amount of the Securities then
outstanding may direct the time, method and place of conducting any proceeding
for any remedy available to the Trustee or exercising any trust or power
conferred on it. However, the Trustee

 A-6
 

 

 

may refuse to follow any direction that conflicts with
law or the Indenture, is unduly prejudicial to the rights of other Holders or
would involve the Trustee in personal liability unless the Trustee is offered
indemnity reasonably satisfactory to it; provided, that
the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction.

If a Default or Event of
Default occurs and is continuing as to which the Trustee has received written
notice pursuant to the provisions of the Indenture, or as to which a
Responsible Officer of the Trustee shall have actual knowledge, the Trustee
shall mail to each Holder a notice of the Default or Event of Default within
thirty (30) days after it occurs unless such Default or Event of Default has
been cured or waived. Except in the case of a Default or Event of Default in
payment of any amounts due with respect to any Security, the Trustee may
withhold the notice if, and so long as it in good faith determines that,
withholding the notice is in the best interests of Holders. The Company must
deliver to the Trustee an annual compliance certificate.

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

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

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

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

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

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

MedImmune, Inc.

One MedImmune Way

Gaithersburg, MD
20878

Attn: General
Counsel

 

 A-7

 

[FORM OF
ASSIGNMENT]

	
  I or we assign to

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PLEASE INSERT SOCIAL
  SECURITY OR OTHER IDENTIFYING NUMBER

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  
	
   

  
	
  (please print or type
  name and address)

  
	
   

  	
   

  	
   

  
	
   

  
	
   

  	
   

  	
   

  
	
   

  
	
   

  	
   

  	
   

  
	
  the within Security and
  all rights thereunder, and hereby irrevocably constitute and appoint

  
	
   

  	
   

  	
   

  
	
   

  
	
   

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

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
  

  	
   

  	
   

  	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
							

 

 A-8
 

 

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

[Check One]

(1)                      ____           to the Company or any Subsidiary
thereof, or

(2)                      ____           pursuant to, and in compliance with,
the exemption from registration provided by Rule 144A under the Securities
Act of 1933, as amended, or

(3)                      ____           pursuant to, and in compliance with,
the exemption from registration provided by Rule 144 under the Securities
Act of 1933, as amended, or

(4)                      ____           pursuant to, and in compliance with,
an exemption from registration under the Securities Act of 1933, as amended,
other than Rule 144A or Rule 144, or

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

Unless one of the
items (1) through (5) is checked, the Registrar will refuse to
register any of the Securities evidenced by this certificate in the name of any
person other than the registered Holder thereof; provided,
however, that if item (3) or (4) is
checked, the Company or the Registrar may require, prior to registering any
such transfer of the Securities, in their sole discretion, such written legal
opinions, certifications and other information as the Registrar or the Company
have reasonably requested to confirm that such transfer is being made pursuant
to an exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act of 1933, as amended. If item (2) is
checked, the purchaser must complete the certification below.

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

	
  Dated:

  	
   

  	
   

  	
  Signed:

  	
   

  
	
   

  	
   

  	
   

  	
   

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

  

 

 

	
  Signature Guarantee:

  	
   

  

 

 A-9
 

 

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

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

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NOTICE: To be executed by an executive officer

  

 

 A-10
 

 

CONVERSION NOTICE

To convert this
Security in accordance with the Indenture, check the box: o

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

$__________________

If
you want the stock certificate representing the shares of Common Stock, if any,
issuable upon conversion made out in another person’s name, fill in the form
below:

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

 

 

 

 

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

 

	
  Date:

  	
   

  	
   

  	
  Signature(s):

  	
   

  

	
  

  	
   

  	
   

  
	
  

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Signature(s) guaranteed
  by:

  	
   

  	
   

  
	
   

  	
   

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

  

 

 A-11
 

 

PURCHASE NOTICE

Certificate No. of Security:  ___________

If you want to elect to
have this Security purchased by the Company pursuant to Section 3.02
of the Indenture, check the box: o

If you want to elect to
have only part of this Security purchased by the Company pursuant to Section 3.02 of the Indenture, state the principal
amount to be so purchased by the Company:

$ __________________________________

(in an integral multiple of $1,000)

 

	
  Date:

  	
   

  	
   

  	
  Signature(s):

  	
   

  

	
  

  	
   

  	
   

  
	
  

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Signature(s) guaranteed
  by:

  	
   

  	
   

  
	
   

  	
   

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

  

 

 A-12
 

 

SCHEDULE A

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL
SECURITY(1)

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

	
  Date of Exchange

  	
   

  	
  Amount of decrease in Principal amount of
  this Global Security

  	
   

  	
  Amount of Increase in Principal amount of
  this Global Security

  	
   

  	
  Principal amount

  of this Global

  Security following

  such decrease

  or increase

  	
   

  	
  Signature or authorized signatory of
  Trustee or Note Custodian

  

 

(1) This is
included in Global Securities only.

 A-13

 

EXHIBIT B-1A

FORM OF
PRIVATE PLACEMENT LEGEND (SECURITIES)

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

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

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

(A)                             TO THE
COMPANY OR ANY SUBSIDIARY THEREOF,

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

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

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

PRIOR TO THE
REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH (3)(D) ABOVE, THE COMPANY
AND THE TRUSTEE RESERVE THE RIGHT TO REQUIRE THE DELIVERY OF SUCH LEGAL
OPINIONS, CERTIFICATIONS OR OTHER EVIDENCE AS MAY REASONABLY BE REQUIRED
IN ORDER TO DETERMINE THAT THE PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE
WITH THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. NO REPRESENTATION
IS MADE AS TO THE AVAILABILITY OF ANY EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT.

THIS SECURITY
SHALL BE ENTITLED TO THE BENEFITS OF THAT CERTAIN REGISTRATION RIGHTS
AGREEMENT, DATED JUNE 28, 2006, AMONG MEDIMMUNE, INC. AND THE OTHER PARTIES
NAMED THEREIN.

 

 B-1A-1

 

EXHIBIT B-1A

FORM OF
PRIVATE PLACEMENT LEGEND (COMMON STOCK)

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

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

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

(A)                             TO THE
COMPANY OR ANY SUBSIDIARY THEREOF,

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

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

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

PRIOR TO THE
REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH (3)(D) ABOVE, THE COMPANY
AND THE TRUSTEE RESERVE THE RIGHT TO REQUIRE THE DELIVERY OF SUCH LEGAL
OPINIONS, CERTIFICATIONS OR OTHER EVIDENCE AS MAY REASONABLY BE REQUIRED
IN ORDER TO DETERMINE THAT THE PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE WITH
THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. NO REPRESENTATION IS
MADE AS TO THE AVAILABILITY OF ANY EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT.

THIS SECURITY
SHALL BE ENTITLED TO THE BENEFITS OF THAT CERTAIN REGISTRATION RIGHTS
AGREEMENT, DATED JUNE 28, 2006, AMONG MEDIMMUNE, INC. AND THE OTHER PARTIES
NAMED THEREIN.

 

 B-1B-1

 

EXHIBIT B-2

FORM OF LEGEND FOR GLOBAL SECURITY

Any Global Security
authenticated and delivered hereunder shall bear a legend (which would be in
addition to any other legends required in the case of a Restricted Security) in
substantially the following form:

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

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

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

 

 B-2-1

 

EXHIBIT C

Form of Notice of
Transfer Pursuant to Registration Statement

MedImmune, Inc.

One MedImmune Way

Gaithersburg, MD 20878

Attention: General
Counsel

The Bank of New
York

101 Barclay Street

Floor 8 West

New York, NY 10286

Attention:
Corporate Trust Administration

Re:                               MedImmune, Inc.
(the “Company”) 1.625% Convertible Senior
Notes due 2013 (the “Securities”)

Ladies and Gentlemen:

Please be advised that                       
has transferred $                       
aggregate principal amount of the Securities and                shares
of the Common Stock, $0.01 par value per share, of the Company issued on
conversion of the Securities (“Stock”)
pursuant to an effective Shelf Registration Statement on Form S-3
(File No. 333-                       ).

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 Securities or Stock is named as a “Selling
Security Holder” in the Prospectus dated                     ,
or in amendments or supplements thereto, and that the aggregate principal
amount of the Securities and the number of shares of Stock transferred are [a
portion of] the Securities and Stock listed in such Prospectus, as amended or
supplemented, opposite such owner’s name.

Very truly yours,

_________________________

           (Name)

 

 C-1

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