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Exhibit 4.2  

  

  

  

EDWARDS LIFESCIENCES CORPORATION,  

 as Issuer  

  

JPMORGAN CHASE BANK,  

 as Trustee  

    

Up to $150,000,000 Aggregate Principal Amount of  

 3.875% Convertible Senior Debentures due 2033  

  

INDENTURE  

 Dated as of May 9, 2003  

 
  
 

    TABLE OF CONTENTS*    
    

	 
	 
	 
	 	Page

	ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE	 	1
	

 	

Section 1.1.	

Definitions	
 	

1
	 	Section 1.2.	Incorporation by Reference of Trust Indenture Act	 	8
	 	Section 1.3.	Rules of Construction	 	8
	 	Section 1.4.	Acts of Holders	 	8
	

ARTICLE II THE SECURITIES	
 	

9
	

 	

Section 2.1.	

Form and Dating	
 	

9
	 	Section 2.2.	Execution and Authentication	 	10
	 	Section 2.3.	Registrar, Paying Agent, Conversion Agent and Bid Solicitation Agent	 	11
	 	Section 2.4.	Paying Agent to Hold Cash and Securities in Trust	 	12
	 	Section 2.5.	Securityholder Lists	 	12
	 	Section 2.6.	Transfer and Exchange	 	12
	 	Section 2.7.	Replacement Securities	 	14
	 	Section 2.8.	Outstanding Securities; Determinations of Holders' Action	 	14
	 	Section 2.9.	Temporary Securities	 	15
	 	Section 2.10.	Cancellation	 	15
	 	Section 2.11.	Persons Deemed Owners	 	16
	 	Section 2.12.	Additional Transfer and Exchange Requirements	 	16
	 	Section 2.13.	CUSIP Numbers	 	20
	 	Section 2.14.	Calculation of Tax Original Issue Discount	 	21
	 	Section 2.15.	Rounding	 	21
	

ARTICLE III OPTIONAL REDEMPTION	
 	

21
	

 	

Section 3.1.	

The Company's Right to Redeem; Notice to Trustee, Paying Agent and Holders	
 	

21
	 	Section 3.2.	Selection of Securities to Be Redeemed	 	22
	 	Section 3.3.	Notice of Redemption	 	22
	 	Section 3.4.	Effect of Notice of Redemption	 	23
	 	Section 3.5.	Sinking Fund	 	23
	 	Section 3.6.	Deposit of Redemption Price	 	23
	 	Section 3.7.	Securities Redeemed in Part	 	23
	 	Section 3.8.	Repayment to the Company	 	23
	

ARTICLE IV PURCHASE OF SECURITIES AT THE OPTION OF THE HOLDER	
 	

24
	

 	

Section 4.1.	

Purchase of Securities at Option of the Holder	
 	

24
	 	Section 4.2.	Additional Conditions and Procedures for Purchase at the Option of the Holder	 	26
	 	Section 4.3.	Effect of Purchase Notice; Effect of Event of Default	 	27
	 	Section 4.4.	Securities Purchased in Part	 	27
	 	Section 4.5.	Covenant to Comply with Securities Laws Upon Purchase of Securities	 	27
	 	Section 4.6.	Repayment to the Company	 	28
	 	Section 4.7.	Company's Right to Elect Manner of Payment of Purchase Price	 	28
	 	Section 4.8.	Officers' Certificate	 	29
	 	Section 4.9.	Fractional Shares	 	29
	 	Section 4.10.	Conditions to Exercise of Right to Issue Common Stock	 	29
	 	Section 4.11.	Extension of Purchase Date	 	30

	*
	Note:
This table of contents shall not, for any purpose, be deemed to be part of the Indenture. 

i

 

	

ARTICLE V PURCHASE OF SECURITIES AT THE OPTION OF THE HOLDER UPON A CHANGE OF CONTROL	
 	

30
	

 	

Section 5.1.	

Purchase at the Option of the Holder upon a Change in Control	
 	

30
	 	Section 5.2.	Additional Conditions and Procedures for Purchase at the Option of the Holder upon a Change in Control	 	34
	 	Section 5.3.	Effect of Change in Control Purchase Notice; Effect of Event of Default	 	35
	 	Section 5.4.	Securities Purchased in Part	 	35
	 	Section 5.5.	Covenant to Comply with Securities Laws Upon Purchase of Securities	 	36
	 	Section 5.6.	Repayment to the Company	 	36
	 	Section 5.7.	Company's Right to Elect Manner of Payment of Purchase Price	 	36
	 	Section 5.8.	Officers' Certificate	 	37
	 	Section 5.9.	Fractional Shares	 	37
	 	Section 5.10.	Conditions to Exercise of Right to Issue Common Stock	 	37
	 	Section 5.11.	Extension of Change in Control Purchase Date	 	38
	

ARTICLE VI COVENANTS	
 	

38
	

 	

Section 6.1.	

Payment of Securities	
 	

38
	 	Section 6.2.	SEC and Other Reports to the Trustee	 	40
	 	Section 6.3.	Compliance Certificate	 	40
	 	Section 6.4.	Maintenance of Office or Agency of the Registrar, Paying Agent and Conversion Agent	 	40
	 	Section 6.5.	Delivery of Information Required Under Rule 144A	 	41
	

ARTICLE VII SUCCESSOR CORPORATION	
 	

41
	

 	

Section 7.1.	

When Company May Merge or Transfer Assets	
 	

41
	

ARTICLE VIII DEFAULTS AND REMEDIES	
 	

42
	

 	

Section 8.1.	

Events of Default	
 	

42
	 	Section 8.2.	Acceleration	 	43
	 	Section 8.3.	Other Remedies	 	43
	 	Section 8.4.	Waiver of Past Defaults	 	44
	 	Section 8.5.	Control by Majority	 	44
	 	Section 8.6.	Limitation on Suits	 	44
	 	Section 8.7.	Rights of Holders to Receive Payment or to Convert	 	45
	 	Section 8.8.	Collection Suit by Trustee	 	45
	 	Section 8.9.	Trustee May File Proofs of Claim	 	45
	 	Section 8.10.	Priorities	 	46
	 	Section 8.11.	Undertaking for Costs	 	46
	 	Section 8.12.	Restoration of Rights and Remedies	 	46
	 	Section 8.13.	Waiver of Stay, Extension or Usury Laws	 	46
	

ARTICLE IX TRUSTEE	
 	

47
	

 	

Section 9.1.	

Duties of Trustee	
 	

47
	 	Section 9.2.	Rights of Trustee	 	47
	 	Section 9.3.	Individual Rights of Trustee	 	49
	 	Section 9.4.	Trustee's Disclaimer	 	49
	 	Section 9.5.	Notice of Defaults	 	49
	 	Section 9.6.	Reports by Trustee to Holders	 	49
	 	Section 9.7.	Compensation and Indemnity	 	49
	 	Section 9.8.	Replacement of Trustee	 	50
	 	Section 9.9.	Successor Trustee by Merger	 	51
	 	Section 9.10.	Eligibility; Disqualification	 	51
	 	Section 9.11.	Preferential Collection of Claims Against Company	 	51
	 	 	 	 	 

ii

 

	

ARTICLE X DISCHARGE OF INDENTURE	
 	

51
	

 	

Section 10.1.	

Discharge of Liability on Securities	
 	

51
	 	Section 10.2.	Repayment to the Company	 	52
	

ARTICLE XI AMENDMENTS	
 	

52
	

 	

Section 11.1.	

Without Consent of Holders	
 	

52
	 	Section 11.2.	With Consent of Holders	 	53
	 	Section 11.3.	Compliance with Trust Indenture Act	 	54
	 	Section 11.4.	Revocation and Effect of Consents, Waivers and Actions	 	54
	 	Section 11.5.	Notation on or Exchange of Securities	 	54
	 	Section 11.6.	Trustee to Sign Supplemental Indentures	 	54
	 	Section 11.7.	Effect of Supplemental Indentures	 	54
	

ARTICLE XII CONVERSION	
 	

54
	

 	

Section 12.1.	

Conversion Rights	
 	

54
	 	Section 12.2.	Conversion Procedure; Conversion Price; Fractional Shares	 	56
	 	Section 12.3.	Adjustment of Conversion Price for Common Stock	 	58
	 	Section 12.4.	Consolidation or Merger of the Company	 	61
	 	Section 12.5.	Notice of Adjustment	 	62
	 	Section 12.6.	Notice in Certain Events	 	62
	 	Section 12.7.	Company To Reserve Stock; Registration; Listing	 	63
	 	Section 12.8.	Taxes on Conversion	 	63
	 	Section 12.9.	Conversion After Record Date	 	63
	 	Section 12.10.	Restriction on Common Stock Issuable Upon Conversion	 	64
	 	Section 12.11.	Company Determination Final	 	65
	 	Section 12.12.	Responsibility of Trustee for Conversion Provisions	 	65
	

ARTICLE XIII MISCELLANEOUS	
 	

65
	

 	

Section 13.1.	

Trust Indenture Act Controls	
 	

65
	 	Section 13.2.	Notices	 	65
	 	Section 13.3.	Communication by Holders with Other Holders	 	66
	 	Section 13.4.	Certificate and Opinion as to Conditions Precedent	 	66
	 	Section 13.5.	Statements Required in Certificate or Opinion	 	66
	 	Section 13.6.	Calculations in Respect of the Securities	 	67
	 	Section 13.7.	Separability Clause	 	67
	 	Section 13.8.	Rules by Trustee, Paying Agent, Conversion Agent and Registrar	 	67
	 	Section 13.9.	Legal Holidays	 	67
	 	Section 13.10.	Governing Law	 	67
	 	Section 13.11.	No Recourse Against Others	 	67
	 	Section 13.12.	Successors	 	68
	 	Section 13.13.	Multiple Originals	 	68
	 	Section 13.14.	Benefits of Indenture	 	68

	SCHEDULE I	Projected Payment Schedule
	

EXHIBIT A	

Form of Security
	

EXHIBIT B	

Form of Restrictive Legend for shares of Common Stock Issued Upon Conversion
	

EXHIBIT C	

Form of Purchase Notice and Change in Control Purchase Notice

iii

 
 
 

CROSS-REFERENCE TABLE*    
    

	TIA

Section
 
	 	Indenture

Section

	310	(a)(1)	 	9.10
	 	(a)(2)	 	9.10
	 	(a)(3)	 	N.A.
	 	(a)(4)	 	N.A.
	 	(b)	 	9.08; 9.10
	 	(c)	 	N.A.
	311	(a)	 	9.11
	 	(b)	 	9.11
	 	(c)	 	N.A.
	312	(a)	 	2.5
	 	(b)	 	13.3
	 	(c)	 	13.3
	313	(a)	 	9.6
	 	(b)(1)	 	9.6
	 	(b)(2)	 	9.6
	 	(c)	 	13.2
	 	(d)	 	9.6
	314	(a)	 	6.2; 6.3; 13.2
	 	(b)	 	N.A.
	 	(c)(1)	 	13.4
	 	(c)(2)	 	13.4
	 	(c)(3)	 	N.A.
	 	(d)	 	N.A.
	 	(e)	 	13.5
	 	(f)	 	N.A.
	315	(a)	 	9.1
	 	(b)	 	9.5; 13.2
	 	(c)	 	9.1
	 	(d)	 	9.1
	 	(e)	 	8.11
	316	(a)(last sentence)	 	2.8
	 	(a)(1)(A)	 	8.5
	 	(a)(1)(B)	 	8.4
	 	(a)(2)	 	N.A.
	 	(b)	 	8.7
	317	(a)(1)	 	8.8
	 	(a)(2)	 	8.9
	 	(b)	 	2.4
	318	(a)	 	13.1

N.A.
means Not Applicable 

	*
	Note:    This
Cross-Reference Table shall not, for any purpose, be deemed to be part of the Indenture. 

iv

        INDENTURE dated as of May 9, 2003 between EDWARDS LIFESCIENCES CORPORATION, a Delaware corporation (the "Company"), and JPMORGAN
CHASE BANK, 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 3.875% Convertible Senior Debentures due 2033: 

 
 

ARTICLE I    
    
    DEFINITIONS AND INCORPORATION BY REFERENCE    
    

        Section 1.1.    Definitions.    

        "Act" has the meanings set forth in Section 1.4(a). 

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

        "Agent Members" has the meaning set forth in Section 2.1(b). 

        "Aggregate Value" has the meaning set forth in Section 12.3(d). 

        "Applicable Procedures" means, with respect to any transfer or transaction involving a Global Security or beneficial interest therein, the
rules and procedures of the Depositary for such Security, in each case to the extent applicable to such transaction and as in effect from time to time. 

        "Bankruptcy Law" means Title 11, United States Code, or any similar Federal or State law for the relief of debtors. 

        "Base Amount" has the meaning set forth in Section 12.3(d). 

        "Bid Solicitation Agent" has the meaning set forth in Section 2.3 hereof. 

        "Board of Directors" means either the board of directors of the Company or any duly authorized committee of such board. 

        "Board Resolution" means a resolution of the Board of Directors. 

        "Business Day" means any day other than a Saturday, a Sunday or a day on which banking institutions in The City of New York are authorized
or required by law, regulation or executive order to close. 

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

        "Certificated Securities" means Securities registered in the name of any Person other than the Depositary and that are in substantially
the form attached hereto as Exhibit A and that do not include the information called for by footnotes 1 and 3 thereof. 

        A
"Change in Control" shall be deemed to have occurred at the time after the date of this Indenture that any of the following
occurs: (a) any "person" or "group" within the meaning of Section 13(d) of the Exchange Act, other than the Company, any Subsidiary of the Company or any employee benefit plan,
employee stock purchase plan, employee stock ownership plan, 401(k) plan or other similar plan maintained by the Company or any of its Subsidiaries or for the benefit of any of the officers, directors
or employees of the Company or any of its Subsidiaries, files a Schedule TO or Schedule 13D (or any successor thereto) under the Exchange Act disclosing that such person or group has become the
direct or indirect "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act) of Common Voting Equity of the Company representing more than 50% of the total voting power
of all of the Company's outstanding Common Voting Equity; (b) consummation of any share exchange, 

 

consolidation
or merger of the Company pursuant to which the Common Stock will be converted into Cash, securities or other property or any sale, lease or other transfer in one transaction or a series
of transactions of all or substantially all of the consolidated assets of the Company and its Subsidiaries, taken as a whole, to any Person other than one of the Company's Subsidiaries
(provided, however, that a transaction where the holders of more than 50% of the total voting power of all of the Company's outstanding Common Voting
Equity immediately prior to such transaction own, directly or indirectly, more than 50% of the total voting power of all of the outstanding Common Voting Equity of the continuing, successor, surviving
or transferee entity immediately after such event shall not constitute a Change in Control); or (c) Continuing Directors cease to constitute at least a majority of the Company's board of
directors; provided, however, that a Change in Control shall not be deemed to have occurred if either (I) the Last Reported Sale Price of the
Common Stock for any five Trading Days (whether or not consecutive) within the 10 consecutive Trading Days ending immediately before the later of the date of the Change in Control or the date of the
announcement thereof equals or exceeds 105% of the Conversion Price per share of Common Stock in effect on each of those Trading Days or (II) at least 90% of the consideration, excluding Cash
payments for fractional shares, in the transaction or transactions constituting the Change in Control consists (or, when issued or exchanged in connection with the Change in Control, will consist) of
shares of common stock or other common equity securities traded on a national securities exchange or quoted on the National Association of Securities Dealers Automated Quotation System or which shall
be so traded or quoted when issued or exchanged in connection with such Change in Control (such securities being referred to as "Publicly Traded
Securities") and as a result of such transaction or transactions the Securities become convertible into such Publicly Traded Securities, excluding Cash payments for fractional
shares. 

        "Change in Control Company Notice" has the meaning set forth in Section 5.2(a). 

        "Change in Control Company Notice Date" has the meaning set forth in Section 5.2(a). 

        "Change in Control Purchase Date" has the meaning set forth in Section 5.1(a). 

        "Change in Control Purchase Notice" has the meaning set forth in Section 5.1(c). 

        "Change in Control Purchase Price" has the meaning set forth in Section 5.1(a). 

        "Code" means the Internal Revenue Code of 1986, as amended. 

        "Common Stock" means the common stock, $1.00 par value per share, of the Company as that stock exists on the date of this Indenture or any
other shares of capital stock of the Company into which such Common Stock shall be reclassified or changed. 

        "Common Stock Transfer Certificate" has the meaning set forth in Section 2.12(e). 

        "Common Voting Equity" means, with respect to any Person, any class or series of common stock or other common equity of such Person
(a) which has no preference in respect of dividends or of amounts payable in the event of any voluntary or involuntary liquidation, dissolution or winding up of such Person and which is not
subject to redemption by such Person and (b) which is ordinarily, in the absence of contingencies, entitled to vote for the election of, or to appoint or to approve the appointment of, the
directors, trustees or managing members of, or other persons holding similar positions with, such Person. 

        "Company" means the party named as the "Company" in the first paragraph of this Indenture until a successor replaces it consistent with
the applicable provisions of this Indenture and, thereafter, shall mean such successor. The foregoing sentence shall likewise apply to any subsequent such successor or successors. 

        "Company Purchase Notice" has the meaning set forth in Section 4.2(a). 

        "Company Purchase Notice Date" has the meaning set forth in Section 4.2(a). 

2

 

        "Company Request" or "Company Order" means a written request or order signed in the name of the Company by any two Officers, at least one
of whom is the Chief Executive Officer, the President, the Chief Financial Officer, the Treasurer or any Vice President. 

        "Contingent Interest" has the meaning set forth in Exhibit A attached hereto. All references herein or in the Securities to
interest accrued or payable as of any date shall include Contingent Interest accrued or payable as of such date to the extent that, in such context, Contingent Interest is, was or would be payable in
respect of the Securities pursuant to the terms of the Securities, and express mention of the payment of Contingent Interest (if applicable) in any provision hereof shall not be construed as excluding
Contingent Interest in those provisions hereof where no express mention is not made. Anything in this Indenture or the Securities to the contrary notwithstanding, Contingent Interest, if any, shall
only be payable under the circumstances specified in the Securities. 

        "Continuing Director" means a director who either was a member of the Company's board of directors on May 6, 2003 or who becomes a
director of the Company subsequent to that date and whose election, appointment or nomination for election by stockholders of the Company is duly approved by a majority of the Continuing Directors on
the Company's board of directors at the time of such approval, either by a specific vote or by approval of the proxy statement issued by the Company on behalf of the Company's entire board of
directors in which such individual is named as a nominee for director. In the event that the Company does not have directors, then references in the preceding sentence to "directors" shall be deemed
to mean the Company's trustees, managing members or other persons holding similar positions with the Company; references in the preceding sentence (and in the definition of Change in Control) to the
Company's "board of directors" shall mean its board of trustees, managing members or similar group; and references in the preceding sentence to the Company's "stockholders" shall mean the holders of
its equity securities entitled to elect its trustees, managing members or other persons holding similar positions. 

        "Conversion Agent" means the office or agency designated by the Company where Securities may be presented for conversion. 

        "Conversion Notice" has the meaning set forth in Section 12.2(b). 

        "Conversion Price" means initially $54.66, subject to adjustment as set forth herein. 

        "Conversion Rate" means, as of any date, the amount obtained by dividing $1,000 by the Conversion Price as of such date. The Conversion
Rate shall be calculated to four decimal places (with the fifth decimal being rounded up if such fifth decimal is five or more and otherwise rounded down). 

        "Corporate Trust Office" means the principal office of the Trustee at which at any time its corporate trust business shall be
administered, which office at the date hereof is located at 4 New York Plaza, 15th
Floor, New York, New York 10004, Attention: Institutional Trust Services, 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 a successor Trustee may designate from time to time by notice to the Holders and the Company). 

        "Custodian" means any receiver, trustee, assignee, liquidator, custodian or similar official under any Bankruptcy Law. 

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

        "Defaulted Interest" has the meaning set forth in Section 6.1 hereof. 

        "Depositary" means, with respect to any Global Securities, a clearing agency that is registered as such under the Exchange Act and is
designated by the Company to act as Depositary for such Global Securities (or any successor securities clearing agency so registered), which shall initially be DTC. 

3

 

        "Determination Date" has, as used in Section 12.3, the meaning set forth in Section 12.3(d). 

        "Distributed Assets or Securities" has the meaning set forth in Section 12.3(d). 

        "DTC" means The Depository Trust Company, a New York corporation. 

        "Event of Default" has the meaning set forth in Section 8.1. 

        "Exchange Act" means the United States Securities Exchange Act of 1934, as amended. 

        "Ex-Dividend Time" means, with respect to any issuance or distribution on shares of Common Stock, the first Trading Day on
which the shares of Common Stock trade in a regular way on
the principal securities exchange or, if not traded on a securities exchange, the principal securities market on which the shares of Common Stock are then traded without the right to receive such
issuance or distribution. 

        "Fair Market Value" has the meaning set forth in Section 12.3(g). 

        "Global Securities" means Securities that are in substantially the form attached hereto as Exhibit A and that include the
information called for by footnotes 1 and 3 thereof and that are deposited with the Depositary or its custodian and registered in the name of the Depositary or its nominee. 

        "Holder" or "Securityholder" means a person in whose name a Security is registered on the Registrar's books. 

        "Indenture" means this Indenture, as amended or supplemented from time to time in accordance with the terms hereof, including the
provisions of the TIA that are explicitly incorporated in this Indenture by reference to the TIA or that are deemed to constitute a part of this Indenture pursuant to the TIA. 

        "Initial Purchasers" has the meaning specified in the Registration Rights Agreement. 

        "Interest Payment Date" has the meaning set forth in Exhibit A attached hereto. 

        "Interest Period" has the meaning set forth in Exhibit A attached hereto. 

        "Last Reported Sale Price" of the Common Stock on any date means: 

        (a)   the
closing sale price per share (or, if no closing sale price is reported, the average of the bid and ask prices or, if more than one in either case, the average of the
average bid and the average ask prices) on such date as reported in the composite transactions for the principal United States national or regional securities exchange on which the Common Stock is
traded or, if the Common Stock is not listed on a United States national or regional securities exchange, as reported by the National Association of Securities Dealers Automated Quotation System; 

        (b)   if
the Common Stock is not listed for trading on a United States national or regional securities exchange and not reported by the National Association of Securities
Dealers Automated Quotation
System on the relevant date, the Last Reported Sale Price will be the last quoted bid price for the Common Stock in the over-the-counter market on the relevant date as reported
by the National Quotation Bureau or similar organization; or 

        (c)   if
the Common Stock is not so quoted, the Last Reported Sale Price will be the average of the mid-point of the last bid and ask prices for the Common Stock
on the relevant date from each of at least three nationally recognized independent investment banking firms selected by the Company for this purpose. 

        "Legal Holiday" means any day other than a Business Day. 

        "Legend" has the meaning set forth in Section 2.6(f). 

4

 

        "Liquidated Damages" has the meaning set forth in the Registration Rights Agreement, except that such term, as used herein, shall mean
only such Liquidated Damages that are payable with respect to the Securities. All references herein or in the Securities to interest accrued or payable as of any date shall include any Liquidated
Damages accrued or payable as of such date as provided in the Registration Rights Agreement to the extent that, in such context, Liquidated Damages are, were or would be payable in respect of the
Securities pursuant to the Registration Rights Agreement, and express mention of the payment of Liquidated Damages (if applicable) in any provision hereof shall not be construed as excluding
Liquidated Damages in those provisions hereof where no express mention is not made; provided, however, that it is understood and agreed that, as set forth in the Registration Rights Agreement,
Liquidated Damages may under certain circumstances be payable in respect of some of the Securities but not be payable in respect of the other Securities. Anything in this Indenture or the Securities
to the contrary notwithstanding, Liquidated Damages, if any, shall only be payable under the circumstances provided in the Registration Rights Agreement and, if payable, shall be payable only to the
Holders specified in the Registration Rights Agreement and only to the extent specified therein. 

        "Market Price" means, with respect to any Purchase Date or Change in Control Purchase Date or other date of determination, the average of
the Last Reported Sale Prices of the Common Stock for the 20 consecutive Trading Days ending on the third Business Day prior to the applicable Purchase Date, Change in Control Purchase Date or date of
determination, as the case may be (if the third Business Day prior to the applicable Purchase Date, Change in Control Purchase Date or date of determination is a Trading Day, or if not, then on the
last Trading Day prior to such third Business Day), appropriately adjusted to take into account the occurrence, during the period commencing on the first of the Trading Days during such 20 consecutive
Trading Day period and ending on such Purchase Date, Change in Control Purchase Date or date of determination, as the case may be, of any event requiring an adjustment of the Conversion Price under
this Indenture. 

        "Notice of Default" has the meaning set forth in Section 8.1. 

        "NYSE" means The New York Stock Exchange, Inc. 

        "Offering Memorandum" means the Company's offering memorandum dated May 6, 2003 relating to the Securities. 

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

        "Officers' Certificate" means a written certificate containing the information specified in Sections 13.4 and 13.5, signed in the name of
the Company by any two Officers, at least one of whom is the Chief Executive Officer, the President, the Chief Financial Officer, any Vice President or the Treasurer, and delivered to the Trustee. An
Officers' Certificate given pursuant to Section 6.3 shall be signed by the principal executive, principal financial or accounting Officer of the Company and one other Officer. 

        "Opinion of Counsel" means a written opinion containing the information specified in Sections 13.4 and 13.5, from legal counsel. The
counsel may be an employee of, or counsel to, the Company. 

        "Paying Agent" has the meaning set forth in Section 2.3. 

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

        "Purchase Date" has the meaning set forth in Section 4.1(a). 

        "Purchase Notice" has the meaning set forth in Section 4.1(a). 

        "Purchase Price" has the meaning set forth in Section 4.1(a). 

5

 

        "QIB" means a "qualified institutional buyer" as defined in Rule 144A. 

        "Record Date" has the meaning set forth in Section 12.3(g). 

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

        "Redemption Price" has the meaning set forth in Section 3.1. 

        "Reference Distribution" has the meaning set forth in Section 12.3(d). 

        "Registrar" has the meaning set forth in Section 2.3. 

        "Registration Rights Agreement" means the Registration Rights Agreement, dated as of May 9, 2003, between the Company and J.P.
Morgan Securities Inc., as representative of the Initial Purchasers referred to therein, as the same may be amended or supplemented from time to time. 

        "Regular Record Date" has the meaning set forth in Exhibit A attached hereto. 

        "Responsible Officer" means, when used with respect to the Trustee, any officer within the corporate trust department of the Trustee,
including any vice president or assistant vice president 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. 

        "Restricted Certificated Security" means a Certificated Security which is a Transfer Restricted Security. 

        "Restricted Common Stock Legend" means the legend in substantially the form set forth on Exhibit B hereto. 

        "Restricted Global Security" means a Global Security that is a Transfer Restricted Security. 

        "Restricted Security" means a Restricted Certificated Security or a Restricted Global Security. 

        "Rule 144" means Rule 144 under the Securities Act (or any successor provision thereto), as it may be amended from time to
time. 

        "Rule 144A" means Rule 144A under the Securities Act (or any successor provision thereto), as it may be amended from time to
time. 

        "SEC" means the United States Securities and Exchange Commission or any successor thereto. 

        "Securities" means any of the Company's 3.875% Convertible Senior Debentures due 2033, as amended or supplemented from time to time,
issued under this Indenture. 

        "Securities Act" means the United States Securities Act of 1933, as amended. 

        "Shelf Registration Statement" has the meaning set forth in Section 12.10(a). 

        "Significant Subsidiary" means any Subsidiary of the Company that is a "significant subsidiary" as defined in
Rule 1-02(w) of Regulation S-X as such Rule is in effect on the date of this Indenture. 

        "Special Record Date" has the meaning set forth in Section 6.1 hereof. 

        "Stated Maturity", when used with respect to any Security, means May 15, 2033. 

        "stockholder rights" has the meaning set forth in Section 12.3(f)(v) hereof. 

        "Subsidiary" means, at any time, any Person at least a majority of whose then outstanding Common Voting Equity shall at the time be owned,
directly or indirectly, by the Company or by one or more Subsidiaries or by the Company and one or more Subsidiaries. 

6

 

        "Tax Original Issue Discount" means the amount of ordinary interest income on a Security that must be accrued as original issue discount
for United States Federal income tax purposes pursuant to Treasury Regulation Section 1.1275-4. 

        "TIA" means the United States Trust Indenture Act of 1939, as amended and as the same may be further amended from time to time. 

        "Trading Day" means a day on which trading in securities generally occurs on the NYSE or, if the Common Stock is not listed on the NYSE,
on the principal other national or regional securities exchange on which the Common Stock is then listed or, if the Common Stock is not listed on a national or regional securities exchange, on the
National Association of Securities Dealers Automated Quotation System, or, if the Common Stock is not quoted on the National Association of Securities Dealers Automated Quotation System, in the
over-the-counter market. 

        "Trading Price" means, on any date of determination, the average of the secondary market bid quotations per $1,000 principal amount of
Securities obtained by the Bid Solicitation Agent for $5 million aggregate principal amount of Securities at approximately 4:00 p.m., New York City time, on such determination date from
three recognized securities dealers selected by the Company, provided that if 

          (i)  at
least three such bid quotations are not obtained by the Bid Solicitation Agent; or 

         (ii)  in
the Company's reasonable judgment, the bid quotations are not indicative of the secondary market value of Securities as of such determination date, 

then
the Trading Price for such determination date will equal (1) the Conversion Rate of the Securities as of such determination date multiplied by (2) the average Last Reported Sale
Price of the Common Stock on the five Trading Days ending on such determination date, appropriately adjusted to take into account the occurrence, during the period commencing on the first such Trading
Day of such five Trading Day Period and ending on such determination date, of any event requiring an adjustment of the Conversion Price under this Indenture. The Trading Price on any date of
determination shall be determined by the Company. 

        "Transfer Certificate" has the meaning set forth in Section 2.12(e). 

7

  

        "Transfer Restricted Security" has the meaning set forth in Section 2.12(e). 

        "Trustee" means the party named as the "Trustee" in the first paragraph of this Indenture until a successor replaces it pursuant to the
applicable provisions of this Indenture and, thereafter, shall mean such successor. The foregoing sentence shall likewise apply to any subsequent such successor or successors. 

        "Unrestricted Certificated Security" means a Certificated Security that is not a Transfer Restricted Security. 

        "Unrestricted Global Security" means a Global Security that is not a Transfer Restricted Security. 

        Section 1.2.    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 securityholder" means a Securityholder. 

        "indenture to be qualified" means this Indenture. 

        "indenture trustee" or "institutional trustee" means the Trustee. 

        "obligor" on the indenture securities means the Company. 

        All
other TIA terms used but not defined in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule have the meanings assigned to
them by such definitions. 

        Section 1.3.    Rules of Construction.    

        Unless
the context otherwise requires: 

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

        (b)   an
accounting term not otherwise defined has the meaning assigned to it in accordance with accounting principles generally accepted in the United States as in effect
from time to time; 

        (c)   "or"
is not exclusive; 

        (d)   "including"
means including, without limitation; and 

        (e)   words
in the singular include the plural, and words in the plural include the singular. 

        Section 1.4.    Acts of Holders.    

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

8

 

conclusive
in favor of the Trustee and the Company, if made in the manner provided in this Section. 

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

        (c)   The
principal amount and serial number of any Security and the ownership of Securities shall be proved by the register maintained by the Registrar for the Securities. 

        (d)   Any
request, demand, authorization, direction, notice, consent, waiver or other Act of the Holder of any Security shall bind every future Holder of the same Security and
the Holder of every Security issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof in respect of anything done, omitted or suffered to be done by the Trustee or
the Company in reliance thereon, whether or not notation of such action is made upon such Security. 

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

 
 

ARTICLE II    
    
    THE SECURITIES    
    

        Section 2.1.    Form and Dating.    

        The
Securities and the Trustee's certificate of authentication shall be substantially in the form of Exhibit A attached hereto, which is a part of this Indenture, with such
appropriate insertions, omissions, substitutions and other variations as are required or permitted by the Indenture. The Securities may have notations, legends or endorsements required by law, stock
exchange rule or usage (provided that any such notation, legend or endorsement required by usage is in a form acceptable to the Company). The Company shall provide any such notations, legends or
endorsements to the Trustee in writing. Each Security shall be dated the date of its authentication. Anything in this Indenture to the contrary notwithstanding, in the event that Certificated
Securities are issued, then the Company may make such changes in the form of such Certificated Securities as the Company deems necessary or appropriate to prevent or reduce the likelihood of fraud or
forgery (such as moving the signatures and certificate of authentication to appear on the first page of such form of Security). 

9

 

        (a)    Restricted Global Securities.    All of the Securities shall be issued initially in the form of one or more
Restricted Global Securities, which shall be deposited with the Trustee at its Corporate Trust Office, as custodian for the Depositary and registered in the name of DTC or the nominee thereof, duly
executed by the Company and authenticated by the Trustee as hereinafter provided. The aggregate principal amount of the Restricted Global Securities may from time to time be increased or decreased by
adjustments made on the records of the Trustee and the Depositary as hereinafter provided. 

        (b)    Global Securities in General.    Each Global Security shall provide that it shall initially represent the
aggregate amount of outstanding Securities stated thereon, but that the aggregate amount of outstanding Securities represented thereby may from time to time be reduced or increased (but not in excess
of the principal amount set forth on the face of such Security), as appropriate, by adjustments
made on the records of the Trustee and the Depositary, to reflect exchanges, redemptions, repurchases and conversions of such Securities. 

        Any
adjustment of the aggregate principal amount of a Global Security to reflect the amount of any increase or decrease in the amount of outstanding Securities represented thereby shall
be made by the Trustee in accordance with instructions given by the Holder thereof as required by Section 2.12 and shall be made on the records of the Trustee and the Depositary. 

        Neither
any members of, or participants in, the Depositary (collectively, "Agent Members") nor any other Persons on whose behalf Agent
Members may act shall have any rights under this Indenture with respect to any Global Security registered in the name of the Depositary or any nominee thereof, or under any such Global Security, and
the Depositary or such nominee, as the case may be, may be treated by the Company, the Trustee and any agent of the Company or the Trustee as the absolute owner and holder of such Global Security for
all purposes whatsoever. Notwithstanding the foregoing, nothing contained herein shall (A) prevent the Company, the Trustee or any agent of the Company or the Trustee from giving effect to any
written certification, proxy or other authorization furnished by the Depositary or such nominee, as the case may be, or (B) impair, as between the Depositary, its Agent Members and any other
Person on whose behalf an Agent Member may act, the operation of customary practices of such Persons governing the exercise of the rights of a holder of any Security. 

        (c)    Certificated Securities.    Certificated Securities will be issued only under the limited circumstances
provided in Section 2.12(a)(i). 

        Section 2.2.    Execution and Authentication.    

        The
Securities shall be executed on behalf of the Company by any Officer. The signature of the Officer on the Securities may be manual or facsimile. 

        A
Security bearing the manual or facsimile signature of an individual who was at the time of the execution of the Security an Officer shall bind the Company, notwithstanding that such
individual has ceased to hold such office(s) prior to the authentication and delivery of such Securities or did not hold such office(s) at the date of authentication of such Securities. 

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

        The
Trustee shall authenticate and deliver the Securities for original issue in an aggregate principal amount of up to $150,000,000 upon one or more Company Orders without any further
action by the Company. The aggregate principal amount of the Securities outstanding at any time may not exceed the amount set forth in the foregoing sentence except as provided in Section 2.7.
In authenticating such 

10

 

Securities,
and accepting the additional responsibilities under this Indenture in relation to such Securities, the Trustee shall receive and shall be fully protected in relying upon: 

        (a)   a
copy of the Board Resolution in or pursuant to which the terms and form of the Securities were established, the issuance and sale of the Securities was authorized,
this Indenture was authorized and specified Officers were authorized to establish the form and determine the terms of the Securities and the form of this Indenture, to execute the Securities and this
Indenture on behalf of the Company and to take any other necessary actions relating thereto, and evidence of any actions taken by authorized Officers pursuant to that Board Resolution, each certified
by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board of Directors or taken by any authorized Officer and to be in full force and effect as of the date of
such certificate; 

        (b)   an
Officers' Certificate delivered in accordance with Sections 13.4 and 13.5; and 

        (c)   an
Opinion of Counsel reasonably satisfactory to the Trustee which shall include a statement to the effect: 

          (i)  that
such Securities, when authenticated and delivered by the Trustee and issued by the Company in the manner and subject to any conditions specified in such opinion of
counsel, will constitute valid and binding obligations of the Company, enforceable in accordance with their terms, subject to bankruptcy, insolvency, reorganization and other laws of general
applicability relating to or affecting the enforcement of creditors' rights and to general equity principles; and 

         (ii)  that
this Indenture has been duly authorized, executed and delivered by the Company and constitutes a valid and binding agreement of the Company enforceable in
accordance with its terms, subject to bankruptcy, insolvency, reorganization and other laws of general applicability relating to or affecting the enforcement of creditors' rights and to general equity
principles. 

        The
Trustee shall act as the initial authenticating agent. Thereafter, the Trustee may appoint an authenticating agent acceptable to the Company to authenticate Securities. An
authenticating agent
may authenticate Securities whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such agent. 

        Upon
receipt of an Officers' Certificate certifying that the Registration Statement is effective, the Trustee shall authenticate, from time to time one or more Unrestricted Global
Securities in an aggregate principal amount not to exceed the aggregate principal amount of surrendered and cancelled beneficial interests in the Restricted Global Securities. 

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

        Section 2.3.    Registrar, Paying Agent, Conversion Agent and Bid Solicitation Agent.    

        The
Company shall maintain an office or agency where Securities may be presented for registration of transfer or for exchange
("Registrar"), an office or agency where Securities may be presented for redemption, repurchase or
payment ("Paying Agent") and an office or agency 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 shall also appoint a bid solicitation agent
("Bid Solicitation Agent") to act as set forth in the definition of Trading Price. The Company may change the Bid Solicitation Agent at any time and
from time to time. 

        The
Company may have one or more co-registrars, one or more additional paying agents and one or more additional conversion agents. The term Paying Agent includes any
additional paying agent, 

11

 

including
any named pursuant to Section 6.4. The term Conversion Agent includes any additional conversion agent, including any named pursuant to Section 6.4. 

        The
Company shall enter into an appropriate agreement with any Registrar, Paying Agent, Conversion Agent or co-registrar (in each case, solely if such Person is a Person
other than the Trustee). The agreement shall implement the provisions of Section 2.4 of this Indenture that relate to such agent. The Company shall notify the Trustee of the name and address of
any such agent. If the Company fails to maintain a Registrar, Paying Agent, Conversion Agent or Bid Solicitation Agent, the Trustee shall act as such and shall be entitled to appropriate compensation
therefor pursuant to Section 9.7. The Company or any Subsidiary or an Affiliate of the Company may act as Paying Agent, Registrar, Conversion Agent, co-registrar or Bid Solicitation
Agent. 

        The
Company hereby initially appoints the Trustee as Registrar, Paying Agent, Conversion Agent and Bid Solicitation Agent in connection with the Securities. 

        The
rights, privileges, protections, immunities and benefits given to the Trustee under this Indenture, 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 Paying Agent, Conversion Agent and Bid Solicitation Agent acting hereunder. 

        Section 2.4.    Paying Agent to Hold Cash and Securities in Trust.    

        Except
as otherwise provided herein, prior to 11:00 a.m. (New York City time) on each due date of payments in respect of any Security, the Company shall deposit with the Paying
Agent Cash (in immediately available funds if deposited on the due date) or a number of shares of Common Stock (or a combination thereof) sufficient to make such payments then so becoming due. The
Company shall require each Paying Agent (other than the Trustee) to agree in writing that the Paying Agent shall hold in trust for the benefit of Securityholders or the Trustee all Cash and Common
Stock held by the Paying Agent for the making of payments in respect of the Securities and shall notify the Trustee of any default by the Company in making any such payment. If the Company or a
Subsidiary or an Affiliate of the Company acts as Paying Agent, it shall segregate the money and Common Stock held by it as Paying Agent and hold it as a separate trust fund. 

        The
Company at any time may require a Paying Agent to pay all Cash and Common Stock and any other securities or property held by it to the Trustee, and to account for any funds and
Common Stock or other securities or property disbursed by it. The Trustee may at any time during the continuance of any default by the Company in making any payments in respect of the Securities, upon
the written request to the Paying Agent, require such Paying Agent to forthwith pay to the Trustee all Cash and Common Stock and any other securities or property so held in trust. Upon doing so, the
Paying Agent shall have no further liability for the Cash or Common Stock or any other securities or property. 

        Section 2.5.    Securityholder Lists.    

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

        Section 2.6.    Transfer and Exchange.    

        (a)   Subject
to compliance with any applicable additional requirements contained in Section 2.12, when a Security is presented to the Registrar with a request to
register a transfer thereof or to exchange such Security for an equal principal amount of Securities of other authorized denominations, the Registrar shall register the transfer or make the exchange
as 

12

 

requested;  provided, however, that every Security presented or surrendered for registration of transfer or exchange shall be duly endorsed or
accompanied by a written instrument of transfer in form satisfactory to the Company and the Registrar, and, if applicable, a duly completed Transfer Certificate in form satisfactory to the Company and
the Registrar, each duly executed by the Holder thereof or its attorney duly authorized in writing. To permit registration of transfers and exchanges, upon surrender of any Security for registration
of transfer or exchange at an office or agency maintained for such purpose pursuant to Section 2.3, the Company shall execute, and the Trustee shall authenticate one or more new Securities of
any authorized denomination or denominations of a like aggregate principal amount at the Registrar's request. Any transfer or exchange shall be without charge, except that the Company or the Registrar
may require payment of a sum sufficient to pay all taxes, assessments or other governmental charges that may be imposed in connection with the transfer or exchange of the Securities from the
Securityholder requesting such transfer or exchange. 

        Neither
the Company, the Registrar nor the Trustee shall be required to exchange or register a transfer of (i) any Securities selected for redemption (except, in the case of
Securities to be redeemed in part, the portion thereof not to be redeemed), (ii) any Securities in respect of which a Purchase Notice or a Change in Control Purchase Notice has been given and
not withdrawn by the Holder thereof in accordance with the terms of this Indenture (except, in the case of Securities to be repurchased in part, the portion thereof not to be purchased) or
(iii) any Securities for a period of 15 days before the selection of Securities for redemption. 

        (b)   Notwithstanding
any provision to the contrary herein, so long as a Global Security remains outstanding and is held by or on behalf of the Depositary, transfers of a
Global Security, in whole or in part, shall be made only in accordance with Section 2.12 and this Section 2.6(b). 

        (c)   Successive
registrations and registrations of transfers and exchanges as aforesaid may be made from time to time as desired, and each such registration shall be noted on
the register for the Securities. 

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

        (e)   No
Registrar shall be required to make registrations of transfer or exchange of Securities during any periods designated in the Securities or in this Indenture as
periods during which such registration of transfers and exchanges need to be made. 

        (f)    If
Securities are issued upon the transfer, exchange or replacement of Securities subject to restrictions on transfer and bearing the legends in substantially the form
indicated by footnote 2 to Exhibit A attached hereto setting forth such restrictions (collectively, the "Legend"), or if a request is made to
remove the Legend on a Security, the Securities so issued shall bear the Legend, or the Legend shall not be removed, as the case may be, unless there is delivered to the Company and the Registrar such
evidence satisfactory to each of them, which may include an opinion of counsel and certifications by the Holder making such request, as may be reasonably required by the Company or the Registrar, that
neither the Legend nor the restrictions on transfer set forth therein are required to ensure that transfers thereof comply with the Securities Act and the rules and regulations thereunder and that
such Securities are not "restricted" within the meaning of Rule 144 under the Securities Act. Upon (i) provision of such satisfactory evidence or (ii) notification by the Company
to the Trustee and Registrar of the sale of such Security pursuant to a registration statement that is effective at the time of such sale, the Trustee, at the written direction of the Company, shall
authenticate and deliver a Security that does not bear the Legend. If the Legend is removed from the face of a Security and the Security is subsequently held by an Affiliate of the Company or by the
Company, the Legend shall be reinstated by the Company. 

13

 

        (g)   Each
Holder of a Security agrees to indemnify the Company, the Registrar and the Trustee against any liability that may result from the transfer, exchange or assignment
of such Holder's Security or any shares of Common Stock issued upon conversion of such Securities in violation of any provision of this Indenture and/or applicable United States federal or state
securities law. 

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

        Section 2.7.    Replacement Securities.    

        If
(a) any mutilated Security is surrendered to the Company, the Registrar or the Trustee, or (b) the Company, the Registrar and the Trustee receive evidence to their
satisfaction of the destruction, loss or theft of any Security, and there is delivered to the Company, the Registrar and the Trustee such
security or indemnity as may be required by them to save each of them harmless, then, in the absence of notice to the Company, the Registrar or the Trustee that such Security has been acquired by a
bona fide purchaser, the Company shall at the expense of the Holder execute and upon its written request the Trustee shall authenticate and deliver, in exchange for any such mutilated Security or in
lieu of any such destroyed, lost or stolen Security, a new Security of like tenor and principal amount, bearing a certificate number not contemporaneously outstanding. 

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

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

        Every
new Security issued pursuant to this Section 2.7 in lieu of any mutilated, destroyed, lost or stolen Security shall constitute an original additional contractual obligation
of the Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all benefits of this Indenture equally and proportionately
with any and all other Securities duly issued hereunder. 

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

        Section 2.8.    Outstanding Securities; Determinations of Holders' Action.    

        Securities
outstanding at any time are all the Securities authenticated by the Trustee, except for those cancelled by it, those delivered pursuant to Section 2.7, those delivered
to the Trustee for cancellation and those described in this Section 2.8 as not outstanding. 

        A
Security does not cease to be outstanding because the Company or an Affiliate thereof holds the Security; provided, however,that in
determining whether the Holders of the requisite principal amount of Securities have given or concurred in any request, demand, authorization, direction, notice, consent, waiver, or other Act
hereunder, Securities owned by the Company or any other obligor upon 

14

  

the Securities or any Affiliate of the Company or such other obligor shall be disregarded and deemed not to be outstanding, except that, in determining whether the Trustee shall be protected in
relying upon any such request, demand, authorization, direction, notice, consent, waiver or other Act, only Securities which a Responsible Officer of the Trustee actually knows to be so owned shall be
so disregarded. Subject to the foregoing, only Securities outstanding at the time of such determination shall be considered in any such determination. 

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

        If
the Paying Agent holds, in accordance with the terms of this Indenture, at 11:00 a.m. (New York City time) on the Stated Maturity or a Redemption Date or a Purchase Date or a
Change in Control Purchase Date or other date on which amounts on the Securities are payable, as the case may be, Cash (and/or Common Stock or other securities or property, in each case if permitted
hereunder), sufficient to pay Securities then payable, then on and after such Stated Maturity, Redemption Date, Purchase Date, Change in Control Purchase Date or other date, as the case may be, such
Securities shall cease to be outstanding and interest, Contingent Interest, if any, and Liquidated Damages, if any, on such Securities shall cease to accrue. 

        If
a Security is converted in accordance with Article XII, then from and after the time of conversion on the date of conversion, such Security shall cease to be outstanding and
interest, Contingent Interest, if any, and Liquidated Damages, if any, on such Security shall cease to accrue on and after the date of conversion. 

        Section 2.9.    Temporary Securities.    

        Pending
the preparation of definitive Securities, the Company may execute, and upon Company Order the Trustee shall authenticate and deliver, temporary Securities which are printed,
lithographed, typewritten, mimeographed or otherwise produced, in any authorized denomination, substantially of the tenor of the definitive Securities in lieu of which they are issued and with such
appropriate insertions, omissions, substitutions and other variations as the officers executing such Securities may determine, as conclusively evidenced by their execution of such Securities. 

        If
temporary Securities are issued, the Company will cause definitive Securities to be prepared without unreasonable delay. After the preparation of definitive Securities, the temporary
Securities shall be exchangeable for definitive Securities upon surrender of the temporary Securities at the office or agency of the Company designated for such purpose pursuant to Section 2.3,
without charge to the Holder. Upon surrender for cancellation of any one or more temporary Securities the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a
like principal amount of definitive Securities of authorized denominations. Until so exchanged the temporary Securities shall in all respects be entitled to the same benefits under this Indenture as
definitive Securities. 

        Section 2.10.    Cancellation.    

        All
Securities surrendered for payment, redemption pursuant to Article III, repurchase by the Company pursuant to Articles IV or V, conversion or registration of transfer or
exchange shall be delivered to the Trustee or, if surrendered to any person other than the Trustee, be delivered to the Trustee and shall be promptly cancelled by it. The Company may at any time
deliver to the Trustee for cancellation any Securities previously authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever, and all Securities so delivered
shall be promptly cancelled by the Trustee. The Company may not issue new Securities to replace Securities it has paid or delivered to the Trustee for cancellation or that any Holder has converted
pursuant to Article XII. No Securities shall be authenticated in lieu of or in exchange for any Securities cancelled as provided in this Section, 

15

 

except
as expressly permitted by this Indenture. All cancelled Securities held by the Trustee shall be destroyed by the Trustee in accordance with the Trustee's customary procedure. 

        Section 2.11.    Persons Deemed Owners.    

        Prior
to due presentment of a Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the person in whose name such Security
is registered as the owner of such Security for the purpose of receiving payment (whether in Cash or Common Stock or any combination thereof) of principal, Redemption Price, Purchase Price or Change
in Control Purchase Price of, and interest, Contingent Interest, if any, and Liquidated Damages, if any, on, the Security, for the purpose of receiving Common Stock (and Cash for any fractional shares
of Common Stock) upon conversion and for all other purposes whatsoever, whether or not such Security is overdue, and neither the Company, the Trustee nor any agent of the Company or the Trustee shall
be affected by notice to the contrary. 

        Section 2.12.    Additional Transfer and Exchange Requirements.    

        (a)    Transfer and Exchange of Global Securities.    

          (i)  Certificated
Securities shall be issued in exchange for interests in the Global Securities only if (x) the Depositary notifies the Company in writing that it is
unwilling or unable to continue as Depositary for the Global Securities or if the Depositary at any time ceases to be a "clearing agency" registered under the Exchange Act, if so required by
applicable law or regulation, and a successor Depositary is not appointed by the Company within 90 days of such notification to the Company or of the Company becoming aware of the Depositary's
ceasing to be so registered, as the case may be, (y) the Company decides in its sole discretion not to have the Securities or portions of the Securities represented by one or more Global
Securities or (z) an Event of Default has occurred and is continuing with respect to the Securities. Any Global Security exchanged pursuant to clause (x) or clause (y) above shall
be exchanged in whole and not in part and any Global Security exchanged pursuant to clause (z) above may be exchanged in whole or from time to time in part as directed by the Depositary. In
either case, the Company shall execute, and the Trustee shall, upon receipt of a Company Order (which the Company agrees to deliver promptly), authenticate and deliver Certificated Securities in an
aggregate principal amount equal to the principal amount of such Global Securities in exchange therefor. Only Restricted Certificated Securities shall be issued in exchange for beneficial interests in
Restricted Global Securities, and only Unrestricted Certificated Securities shall be issued in exchange for beneficial interests in Unrestricted Global Securities. Certificated Securities issued in
exchange for beneficial interests in Global Securities shall be registered in such names and shall be in such authorized denominations as the Depositary, pursuant to instructions from its direct or
indirect participants or otherwise, shall instruct the Trustee. The Trustee shall deliver or cause to be delivered such Certificated Securities to the Persons in whose name such Securities are so
registered. Such exchange shall be effected in accordance with the Applicable Procedures. 

         (ii)  Notwithstanding
any other provisions of this Indenture other than the provisions set forth in Section 2.12(a)(i), 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)   Transfer and Exchange of Certificated Securities. In the event that Certificated Securities are issued in exchange for
beneficial interests in Global Securities in accordance with 

16

 

Section 2.12(a)(i),
and, on or after such event, Certificated Securities are presented by a Holder to the Registrar with a request: 

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

        (y)   to
exchange such Certificated Securities for an equal principal amount of Certificated Securities of other authorized denominations, 

such
Registrar shall register the transfer or make the exchange as requested; provided, however, that the Certificated Securities presented or
surrendered for register of transfer or exchange: 

          (i)  shall
be duly endorsed or accompanied by a written instrument of transfer in accordance with the proviso to the first paragraph of Section 2.6; and 

         (ii)  in
the case of a Restricted Certificated Security, such request shall be accompanied by the following additional information and documents (all of which, other than any
legal opinion, may be submitted by facsimile or electronically), as applicable: 

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

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

        (C)  if
such Restricted Certificated Security is being transferred pursuant to an exemption from the registration requirements under the Securities Act in accordance with
Rule 144, a certification to that effect from the Holder (in substantially the form set forth in the Transfer Certificate) and if the Company or the Registrar so requests, such legal opinions
of counsel, in form and substance acceptable to the Company, certificates and other information as the Company or the Registrar may require to confirm that such transfer is being made pursuant to an
exemption from the registration requirements of the Securities Act. 

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

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

17

 

         (ii)  if
such beneficial interest is being transferred pursuant to an exemption from the registration requirements of the Securities Act in accordance with Rule 144, a
certification to that effect from the Holder (in substantially the form set forth in the Transfer Certificate) and, if the Company or the Trustee so requests, such legal opinions of counsel, in form
and substance acceptable to the Company, certificates and other information as the Company or the Registrar may require to confirm that such transfer is being made pursuant to an exemption from the
registration requirements of the Securities Act, 

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

        Beneficial
interests in an Unrestricted Global Security shall not be exchanged for a beneficial interest in a Restricted Global Security. 

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

        (x)   to
register the transfer of such Certificated Securities to a person who will take delivery thereof in the form of a beneficial interest in a Global Security, which
request shall specify whether such Global
Security will be a Restricted Global Security or an Unrestricted Global Security (provided that Restricted Certificated Securities may be exchanged only for interests in Restricted Global Securities,
except as otherwise provided in this Section 2.12(d), and Unrestricted Certificated Securities may be exchanged only for interests in Unrestricted Global Securities), or 

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

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

        (1)   shall
be duly endorsed or accompanied by a written instrument of transfer in accordance with the proviso to the first paragraph of Section 2.6; 

18

 

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

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

         (ii)  if
such Restricted Certificated Security is being transferred pursuant to an exemption from the registration requirements of the Securities Act in accordance with
Rule 144, a certification to that effect from such Holder (in substantially the form set forth in the Transfer Certificate) and, if the Company or the Registrar so requests, such legal opinions
of counsel, in form and substance acceptable to the Company, certificates and other information as the Company or the Registrar may require to confirm that such transfer is being made pursuant to an
exemption from the registration requirements of the Securities Act; 

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

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

An
Unrestricted Certificated Security shall not be exchanged for a beneficial interest in a Restricted Global Security. 

        (e)    Legends.    

        (1)   Except
as permitted by the following paragraphs (2), (3) and (4), each Global Security and Certificated Security (and all Securities issued in exchange therefor
or upon registration of transfer or replacement thereof) shall bear the Legend (each a "Transfer Restricted Security") for so long as it is required by
this Indenture to bear such Legend. Each Transfer Restricted Security shall have attached thereto a transfer certificate (a "Transfer Certificate") and
a common stock transfer certificate (a "Common Stock Transfer Certificate") in substantially the forms indicated by footnote 4 to Exhibit A
attached hereto. 

        (2)   Upon
any sale or transfer of a Transfer Restricted Security (x) pursuant to Rule 144 under the Securities Act or (y) pursuant to an effective
registration statement under the Securities Act: 

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

19

 

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

        (3)   Upon
the exchange, registration of transfer or replacement of Securities not bearing the Legend, the Company shall execute, and the Trustee shall authenticate and
deliver, Securities that do not bear such Legend and that do not have a Transfer Certificate attached thereto. 

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

        (5)   In
the event that shares of Common Stock or other securities are issued upon conversion of a Security (including an interest in a Global Security) that bears the Legend,
then such Shares of Common Stock or other securities, as the case may be, shall bear a legend in substantially the form called for by Exhibit B attached hereto. 

        (f)    Transfers to the Company. Nothing contained in this Indenture or in the Securities shall prohibit the sale or other
transfer of any Securities (including beneficial interests in Global Securities) to the Company or any of its Subsidiaries, which Securities shall thereupon be cancelled in accordance with
Section 2.10. 

        (g)   Anything
herein to the contrary notwithstanding, in connection with any transfer of Securities prior to the date which is two years after the later of (x) the
date of this Indenture (or, if the over-allotment option granted to J.P. Morgan Securities Inc. is exercised, the original issue date of the Securities issued upon exercise of such
option) and (y) the last date on which the Company or any "affiliate" (as defined in Rule 144 under the Securities Act) of the Company was the owner of the applicable Security, the
Holder of such Security will be required to deliver to the Company and the Trustee such legal opinions, certificates and other information as the Company or the Trustee may reasonably require 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 and is otherwise being made in
compliance with the transfer restrictions set forth in this Indenture and the Securities; provided that the foregoing shall not be applicable in the case of a transfer of Securities being made
pursuant to a registration statement which is effective under the Securities Act. 

        Section 2.13.    CUSIP Numbers.    

        The
Company may issue the Securities with "CUSIP" numbers (if then generally in use), and, if so, the Trustee shall use "CUSIP" numbers in notices of redemption as a convenience to
Holders; provided, however, that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Securities or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the
Securities, and any 

20

 

such
redemption shall not be affected by any defect in or omission of such numbers. The Company will promptly notify the Trustee of any change in the CUSIP numbers. 

        Section 2.14.    Calculation of Tax Original Issue Discount.    

        The
Company agrees, and each Holder and any beneficial owner of a Security by its purchase thereof shall be deemed to agree, to treat, for United States federal income tax purposes, the
Securities as debt instruments that are subject to Treasury Regulation Section 1.1275-4(b). For United States federal income tax purposes, the Company agrees, and each Holder and
any beneficial owner of a Security by its purchase thereof shall be deemed to agree, to treat the fair market value of the Common Stock received upon the conversion of a Security, or upon the Holder's
or beneficial owner's exercise of its option to require the Company to purchase the Security where the Company elects to pay in Common Stock, as a contingent payment for purposes of Treasury
Regulation Section 1.1275-4(b) that will result in an adjustment under Treasury Regulation Section 1.1275-4(b)(3)(iv) and Treasury Regulation
Section 1.1275-4(b)(6) and to accrue interest with respect to outstanding Securities as original issue discount for United States federal income tax purposes (i.e., Tax Original
Issue Discount) according to the "noncontingent bond method," set forth in Section 1.1275-4(b) of the Treasury Regulations, using the comparable yield set forth in Schedule I
to this Indenture compounded semi-annually and the projected payment schedule attached as Schedule I to this Indenture. 

        The
Company acknowledges and agrees, and each Holder and any beneficial owner of a Security by its purchase thereof shall be deemed to acknowledge and agree, that (i) the
comparable yield means the annual yield the Company would pay, as of the date of this Indenture for United States federal income tax purposes, on a noncontingent, nonconvertible,
fixed-rate debt instrument with terms and conditions otherwise similar to those of the Securities, (ii) the schedule of projected payments is determined, in part, on the basis of an
assumption of linear growth of the stock price and is not determined for any purpose other than for the determination of interest accruals and adjustments thereof in respect of the Securities for
United States federal income tax purposes and (iii) the comparable yield and the schedule of projected payments do not constitute a projection or representation regarding the amounts payable on
the Securities. 

        Section 2.15.    Rounding.    

        For
purposes of computing the Trading Price, Market Price or Last Reported Sale Price as of any date, the average of the bid and ask prices for any security as of any date, or the
average Trading Price or average Last Reported Sale Price for any period, all calculations shall be made by the Company and shall be made to the nearest cent, with one-half cent being
rounded upward. 

 
 

ARTICLE III    
    
    OPTIONAL REDEMPTION    
    

        Section 3.1.    The Company's Right to Redeem; Notice to Trustee, Paying Agent and Holders.    

        Prior
to May 15, 2008, the Securities will not be redeemable at the Company's option. On or after May 15, 2008, the Company, may, at its option, redeem the Securities in
accordance with this Article III for Cash at any time in whole, or from time to time in part, at a redemption price payable to the Holders of the Securities to be redeemed equal to 100% of the
principal amount of the Securities to be redeemed, plus accrued and unpaid interest, if any, and Contingent Interest, if any, on those Securities to, but excluding, the Redemption Date (the
"Redemption Price"); provided that payments of accrued and unpaid interest, if any, Contingent Interest, if any, and Liquidated Damages, if any, that
are due and payable on any Interest Payment Date falling on or prior to a Redemption Date will be payable on such Interest Payment Date to the persons that were the Holders of the Securities (or one
or more predecessor Securities) at the close of business on the relevant Regular 

21

 

Record
Date (in which case the Redemption Price shall not include any such accrued and unpaid interest, if any, Contingent Interest, if any, or Liquidated Damages, if any, paid or duly provided for on
such Interest Payment Date). 

        Section 3.2.    Selection of Securities to Be Redeemed.    

        If
fewer than all of the outstanding Securities are to be redeemed, the Trustee shall select the Securities to be redeemed (in principal amounts of $1,000 or integral multiples thereof)
by lot, on a pro rata basis or by another method the Trustee considers fair and appropriate (so long as such method is not prohibited by the rules of the national or regional securities exchange on
which the Securities are then listed). The Trustee shall make such selection promptly after it receives the notice from the Company provided for in Section 3.3. 

        If
any Securities selected for partial redemption are thereafter surrendered for conversion in part before termination of the conversion right with respect to the portion of the
Securities so selected, the converted portion of such Securities shall be deemed (so far as may be), solely for purposes of determining the aggregate principal amount of Securities to be redeemed by
the Company, to be the portion selected for redemption. Securities that have been converted during a selection of Securities to be redeemed may be treated by the Trustee as outstanding for the purpose
of such selection. Nothing in this Section 3.2 shall affect the right of any Holder to convert any Securities pursuant to Article XII. 

        Section 3.3.    Notice of Redemption.    If the Company elects to redeem Securities, it shall notify the
Trustee and the Paying Agent in writing of the Redemption Date, the principal amount of Securities to be redeemed and the Redemption Price. The Company shall give this notice to the Trustee and the
Paying Agent at least 40 days prior to the Redemption Date (unless a shorter notice shall be acceptable to the Trustee). 

        At
least 30 days but not more than 60 days before a Redemption Date, the Company shall mail a notice of redemption by first-class mail, postage prepaid, to each Holder of
Securities to be redeemed. 

        The
notice of redemption shall identify the Securities to be redeemed and shall state: 

        (a)   the
Redemption Date; 

        (b)   the
Redemption Price and the amount of interest, if any, and Contingent Interest, if any, payable on the Redemption Date; 

        (c)   the
then current Conversion Price; 

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

        (e)   that
Securities called for redemption must be presented to the Paying Agent to collect the Redemption Price; 

        (f)    that
the Securities called for redemption may be converted at any time before the close of business on the Business Day prior to the Redemption Date; 

        (g)   that
Holders who want to convert their Securities must comply with the requirements applicable to such conversion set forth in Article XII; 

        (h)   if
fewer than all of the outstanding Securities are to be redeemed, the certificate number (but only in the case of Certificated Securities) and the principal amounts of
the particular Securities to be redeemed; 

        (i)    that,
unless the Company defaults in making payment of such Redemption Price, interest, if any, Contingent Interest, if any, and Liquidated Damages, if any, on
Securities called for redemption will cease to accrue on and after the Redemption Date, and the only remaining right 

22

  

of the Holder will be to receive payment of the Redemption Price upon presentation and surrender to the Paying Agent of the Securities; 

        (j)    the
CUSIP numbers of the Securities called for redemption; and 

        (k)   any
other information the Company wants to present. 

        At
the Company's request, the Trustee shall mail the notice of redemption in the Company's name and at the Company's expense; provided,
however, that the Company makes such request at least five Business Days (unless a shorter period shall be acceptable to the Trustee) prior to the date by which such notice of
redemption must be given to Holders in accordance with this Section 3.3; provided, further, that the text of the notice of redemption shall be
prepared by the Company. 

        Section 3.4.    Effect of Notice of Redemption.    

        Once
notice of redemption is mailed, Securities called for redemption become due and payable on the Redemption Date and at the Redemption Price, except for Securities that are converted
in accordance with the provisions of Article XII and Securities (or portions thereof) which are not outstanding on the Redemption Date. Upon presentation and surrender to the Paying Agent,
Securities called for redemption shall be paid at the Redemption Price. 

        Section 3.5.    Sinking Fund.    

        There
shall be no sinking fund for the Securities. 

        Section 3.6.    Deposit of Redemption Price.    

        On
or before 11:00 a.m. (New York City time) on the Redemption Date, the Company shall deposit with the Paying Agent (or if the Company or a Subsidiary or an Affiliate of the
Company is acting as
the Paying Agent, shall segregate and hold in trust) an amount of money sufficient to pay the aggregate Redemption Price of all the Securities to be redeemed on that date other than the Securities (or
portions thereof) called for redemption which on or prior thereto have been delivered by the Company to the Registrar for cancellation or have been converted. The Trustee and Paying Agent shall, as
promptly as practicable, return to the Company any money not required for that purpose because of conversion of the Securities in accordance with the provisions of Article XII or because any
Securities (or portions thereof) called for redemption have been cancelled. If such money is then held by the Company or a Subsidiary in trust and is not required for such purpose, it shall be
discharged from such trust. 

        Section 3.7.    Securities Redeemed in Part.    

        Any
Security which is to be redeemed only in part shall be surrendered at the office of the Paying Agent and the Company shall execute and the Trustee shall authenticate and deliver to
the Holder of such Security, without charge, a new Security or Securities, in an authorized denomination equal in aggregate principal amount to the unredeemed portion of the Security so surrendered. 

        Section 3.8.    Repayment to the Company.    

        To
the extent that the aggregate amount of Cash deposited by the Company pursuant to Section 3.6 exceeds the aggregate Redemption Price of the Securities or portions thereof which
the Company is redeeming as of the Redemption Date, then, promptly after the Redemption Date, the Trustee and the Paying Agent shall return any such excess to the Company. 

23

 

 
 

ARTICLE IV    
    
    PURCHASE OF SECURITIES
  AT THE OPTION OF THE HOLDER    
    

        Section 4.1.    Purchase of Securities at Option of the Holder.    

        (a)    Notice of Purchase.    On each of May 15, 2008, May 15, 2013 and May 15, 2018 (each, a
"Purchase Date"), a Holder shall have the right, at such Holder's option, subject to the terms and conditions of this Indenture, to require the Company
to purchase any or all of such Holder's outstanding Securities at a purchase price equal to 100% of the principal amount of the Securities to be purchased, plus accrued and unpaid interest, if any,
and Contingent Interest, if any, to, but excluding, such Purchase Date (the "Purchase Price"), provided that payments of accrued and unpaid interest,
Contingent Interest, if any, and Liquidated Damages, if any, that are due and payable on any Interest Payment Date falling on or prior to a Purchase Date will be payable on such Interest Payment Date
to the persons that were the Holders of the Securities (or one or more predecessor Securities) at the close of business on the relevant Regular Record Date (in which case the Purchase Price shall not
include any such accrued and unpaid interest, if any, Contingent Interest, if any, or Liquidated Damages, if any, paid or duly provided for on such Interest Payment Date), upon: 

          (i)  delivery
to the Paying Agent by the Holder of a duly completed written notice of purchase (a "Purchase Notice"), in
substantially the form attached hereto as Exhibit C, at any time from the opening of business on the date that is 25 Business Days immediately preceding the applicable Purchase Date until
5:00 p.m. (New York City time) on the fifth Business Day immediately preceding such Purchase Date, which Purchase Notice shall include the information called for by such Purchase Notice,
including the following: 

        (A)  if
certificated, the certificate numbers of the Securities which the Holder will deliver to be purchased, or, if not certificated, such information as may be required
under the Applicable Procedures; 

        (B)  the
portion of the principal amount of the Securities which the Holder will deliver to be purchased, which portion must be $1,000 in principal amount or an integral
multiple thereof; 

        (C)  that
such Securities shall be purchased as of the Purchase Date pursuant to the terms and conditions specified in this Indenture and the Securities; and 

        (D)  if
the Company elects, pursuant to a Company Purchase Notice, to pay the Purchase Price as of the May 15, 2013 or the May 15, 2018 Purchase Dates, in whole
or in part, in Common Stock but such Purchase Price shall ultimately be payable to such Holder entirely in Cash because any of the conditions to the payment of the Purchase Price in Common Stock are
not satisfied prior to the close of business on the Business Day immediately preceding the relevant Purchase Date, whether such Holder elects (x) to withdraw such Purchase Notice as to some or
all of the Securities to which such Purchase Notice relates (stating the principal amount and, if certificated, certificate numbers of the Securities as to which such withdrawal shall relate), or
(y) to receive Cash in respect of the entire Purchase Price for all Securities (or portions thereof) to which such Purchase Notice relates;  provided, that if a Holder, in such Holder's Purchase
Notice, fails to indicate such Holder's choice with respect to the foregoing election, such Holder
shall be deemed to have elected to receive Cash in respect of the entire Purchase Price for all Securities subject to such Purchase Notice under the foregoing circumstances; and 

         (ii)  delivery
or book-entry transfer of such Securities to the Paying Agent prior to, on or after the Purchase Date (together with all necessary endorsements) at
the offices of the Paying 

24

 

Agent,
such delivery or transfer being a condition to receipt by the Holder of the Purchase Price therefor; provided, however, that such Purchase Price
shall be so paid pursuant to this Section 4.1 only if the Securities so delivered or transferred to the Paying Agent shall conform in all respects to the description thereof in the related
Purchase Notice. 

        (b)   The
Company shall purchase from a Holder, pursuant to this Section 4.1, Securities if the principal amount of such Securities is $1,000 or a multiple of $1,000 if
so requested by such Holder, provided that such Holder shall have complied with the applicable procedures set forth in this Indenture and such Securities shall have been delivered to the Paying Agent
as aforesaid and not withdrawn. 

        (c)   Any
purchase by the Company contemplated pursuant to the provisions of this Article IV shall be consummated by the delivery of the Purchase Price to be received
by the Holder promptly following the later of the Purchase Date and the time of book-entry transfer or delivery of the Securities. 

        (d)   Notwithstanding
anything herein to the contrary, any Holder delivering to the Paying Agent the Purchase Notice contemplated by this Section 4.1 shall have the
right at any time prior to 5:00 p.m. (New York City time) on the fifth Business Day prior to the applicable Purchase Date to withdraw such Purchase Notice (in whole or in part) by delivery of a
written notice of withdrawal to the Paying Agent in accordance with Section 4.3. 

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

        (f)    At
or before 11:00 a.m. (New York City time) on the Purchase Date, the Company shall deposit with the Paying Agent (or if the Company or a Subsidiary or an
Affiliate of the Company is acting as the Paying Agent, shall segregate and hold in trust) Cash or Common Stock sufficient to pay the aggregate Purchase Price of the Securities to be purchased
pursuant to this Section 4.1. Payment by the Paying Agent of the Purchase Price for such Securities shall be made promptly following the later of the Purchase Date and the time of
book-entry transfer or delivery of such Securities. If the Company is delivering Common Stock, the Company shall deliver to each Holder (or other person) entitled to receive Common Stock,
through the Paying Agent, a certificate (other than in the case of Securities in book-entry form with the Depositary, which shares of Common Stock will be delivered in accordance with the
Applicable Procedures of the Depositary) for the number of full shares of Common Stock issuable in payment of such Purchase Price and Cash in lieu of any fractional shares. The Person in whose name
the certificate for Common Stock is registered shall be treated as a holder of record following the Purchase Date. No payment or adjustment shall be made for dividends or distributions on the Common
Stock the record date for which occurred on or prior to the Purchase Date. If the Paying Agent holds, in accordance with the terms of this Indenture, Cash or Common Stock sufficient to pay the
Purchase Price of the Securities in respect of which a Purchase Notice has been duly delivered and not withdrawn on the applicable Purchase Date, then on and after such Purchase Date (whether or not
book-entry transfer of such Securities is made and whether or not such Securities are delivered to the Paying Agent) (i) such Securities shall cease to be outstanding and interest,
Contingent Interest, if any, and Liquidated Damages, if any, will cease to accrue on such Securities, and (ii) all other rights of the Holders of such Securities will terminate, other than the
right to receive the Purchase Price upon delivery or transfer of such Securities as aforesaid. If a Holder is paid in Common Stock, the Company shall pay any documentary, stamp or similar issue or
transfer tax due on such issue of shares of Common Stock. However, the Holder shall pay any such tax which is due because the Holder requests the shares of Common Stock to be issued in a name other
than the Holder's name. The Paying Agent may refuse to deliver the Common Stock being issued in a name other than the Holder's name until the Paying Agent receives a sum sufficient to pay any tax or
other 

25

 

governmental
charge which shall be due because the shares of Common Stock are to be issued in a name other than the Holder's name. Nothing herein shall preclude the Paying Agent from withholding any
withholding tax required by law. 

        (g)   Notwithstanding
anything herein to the contrary, the portion of the Purchase Price, if any, that constitutes accrued and unpaid interest, if any, Contingent Interest, if
any, and Liquidated Damages, if any, on the Securities shall be paid in Cash. 

        (h)   All
questions as to the validity, eligibility (including time of receipt) and acceptance of any Securities for repurchase shall be determined by the Company, whose
determination shall be final and binding. 

        Section 4.2.    Additional Conditions and Procedures for Purchase at the Option of the Holder.    

        (a)   The
Company shall mail a notice (a "Company Purchase Notice") to the Holders at their addresses shown in the Security
register maintained by the Registrar and to the Trustee and Paying Agent, on or before the 25th Business Day prior to each Purchase Date (a "Company Purchase Notice
Date"). Each Company Purchase Notice shall include a form of Purchase Notice to be completed by a Holder and shall state: 

          (i)  the
applicable Purchase Price and the Conversion Price at the time of such notice; 

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

        (iii)  that
Securities must be surrendered to the Paying Agent to collect payment of the Purchase Price; 

        (iv)  that
Securities as to which a Purchase Notice has been given may be converted only if the conditions to conversion set forth in this Indenture have been satisfied and
only if the applicable Purchase Notice has been withdrawn in accordance with the terms of this Indenture; 

         (v)  that
the Purchase Price for any Securities as to which a Purchase Notice has been given and not withdrawn shall be paid by the Paying Agent promptly following the later
of the Purchase Date and the time of book-entry transfer or delivery of such Securities; 

        (vi)  whether
the Company will pay the Purchase Price in Cash, in Common Stock or in a combination thereof (specifying the percentages or amounts of each) and, if Common
Stock is to be issued, the method for calculating the Market Price of the Common Stock; 

       (vii)  the
procedures the Holder must follow to exercise its rights under Section 4.1 and this Section 4.2; 

      (viii)  briefly,
the conversion rights, if any, of the Holders of the Securities; 

        (ix)  that,
unless the Company defaults in making payment of such Purchase Price on Securities covered by any Purchase Notice and not withdrawn, interest, Contingent
Interest, if any, and Liquidated Damages, if any, on the Securities as to which a Purchase Notice has been given and not withdrawn will cease to accrue on and after the Purchase Date; 

         (x)  the
CUSIP number(s) of the Securities; and 

        (xi)  the
last date and time on which, after a Purchase Notice has been delivered, the Holder may withdraw such Purchase Notice, which date and time will be 5:00 p.m.
(New York City time) on the fifth Business Day immediately preceding the applicable Purchase Date. 

        At
the Company's request, made at least five Business Days (unless a shorter period shall be acceptable to the Paying Agent) prior to the date upon which such notice is to be mailed, and
at the Company's expense, the Paying Agent shall give the Company Purchase Notice in the Company's name; 

26

 

 provided, however, that, in all cases, the text of the Company Purchase Notice shall be prepared by the Company. 

        Section 4.3.    Effect of Purchase Notice; Effect of Event of Default.    

        (a)   Upon
receipt by the Company of the Purchase Notice specified in Section 4.1, the Holder of the Securities in respect of which such Purchase Notice was given shall
(unless such Purchase Notice is withdrawn as specified in the following two paragraphs) thereafter be entitled to receive solely the Purchase Price with respect to such Securities. Such Purchase Price
shall be paid by the Paying Agent to such Holder promptly following the later of (x) the Purchase Date with respect to such Securities (provided the conditions in Section 4.1 have been
satisfied) and (y) the time of delivery or book-entry transfer of such Securities to the Paying Agent by the Holder thereof in the manner required by Section 4.1. Securities
in respect of which a Purchase Notice has been given by the Holder thereof may not be converted into shares of Common Stock on or after the date of the delivery of such Purchase Notice unless such
Purchase Notice has first been validly withdrawn as specified in the following two paragraphs. 

        A
Purchase Notice may be withdrawn in whole or in part by means of a written notice of withdrawal delivered to the office of the Paying Agent at any time prior to 5:00 p.m. (New
York City time) on the fifth Business Day immediately preceding the Purchase Date to which it relates specifying: 

          (i)  if
certificated, the certificate numbers of the Securities in respect of which such notice of withdrawal is being submitted, or, if not certificated, such information
as may be required under the Applicable Procedures; 

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

        (iii)  the
principal amount, if any, of such Securities which remains subject to the original Purchase Notice and which has been or shall be delivered for purchase by the
Company. 

        If
a Purchase Notice is duly withdrawn with respect to any Securities, then the Company will not be obligated to purchase such Securities pursuant to this Article IV. 

        (b)   There
shall be no purchase of any Securities pursuant to this Article IV if an Event of Default has occurred and is continuing (other than a default that is cured
by the payment of the Purchase Price). The Paying Agent shall promptly return to the respective Holders thereof any Securities (x) with respect to which a Purchase Notice has been withdrawn in
compliance with this Indenture, or (y) held by it during the continuance of an Event of Default (other than a default that is cured by the payment of the Purchase Price) in which case, upon
such return, the Purchase Notice with respect thereto shall be deemed to have been withdrawn. 

        Section 4.4.    Securities Purchased in Part.    Any Securities that are to be purchased only in part shall be
surrendered at the office of the Paying Agent (with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or such Holder's attorney duly authorized in writing) and the Company shall execute and the Trustee shall authenticate and deliver to the Holder of such
Securities, without service charge, a new Security or Securities, of any authorized denomination as requested by such Holder in aggregate principal amount equal to, and in exchange for, the portion of
the principal amount of the Securities so surrendered which is not purchased. 

        Section 4.5.    Covenant to Comply with Securities Laws Upon Purchase of Securities.    In connection with any
offer to purchase Securities under this Article IV, the Company shall, to the extent that such offer or purchase constitutes an "issuer tender offer" for purposes of
Rule 13e-4 (or any successor provision thereto) under the Exchange Act, (a) comply with Rules 13e-4 and 14e-1 (and any successor provision
thereto) under the Exchange Act, if applicable; (b) file the related Schedule TO (or any 

27

 

successor
schedule, form or report) under the Exchange Act, if applicable; and (c) otherwise comply with all applicable federal and state securities laws so as to permit the rights and
obligations under Section 4.1 to be exercised in the time and in the manner specified in Section 4.1. The Company shall determine whether such offer or purchase constitutes an "issuer
tender offer" and whether any of the foregoing shall be applicable in its sole and absolute discretion. 

        Section 4.6.    Repayment to the Company.    The Trustee and the Paying Agent shall return to the Company upon
written request any Cash or property that remains unclaimed as provided in paragraph 12 of the Securities, together with interest that the Trustee or Paying Agent, as the case may be, has
agreed to
pay, if any, held by them for the payment of a Purchase Price; provided, however, that to the extent that the aggregate amount of Cash or property
deposited by the Company pursuant to Section 4.1(f) exceeds the aggregate Purchase Price of the Securities or portions thereof which the Company is obligated to purchase as of the Purchase
Date, then, promptly on and after the Business Day following the Purchase Date, the Trustee and the Paying Agent shall return any such excess to the Company together with interest that the Trustee or
Paying Agent, as the case may be, has agreed in writing to pay, if any. 

        Section 4.7.    Company's Right to Elect Manner of Payment of Purchase Price.    In the case of the
May 15, 2008 Purchase Date, the Company shall pay the Purchase Price in respect of any Securities to be purchased pursuant to this Article IV as of such Purchase Date in Cash. Subject to
Section 4.10, the Company may elect with respect to the May 15, 2013 or the May 15, 2018 Purchase Dates to pay the Purchase Price in respect of the Securities to be purchased
pursuant to this Indenture as of such Purchase Date in (a) Cash or (b) Common Stock, or (c) any combination of Cash and Common Stock, subject to the conditions set forth herein.
The number of full shares of Common Stock that shall be issued to any Holder entitled to receive the Purchase Price in whole or in part in shares of Common Stock shall be calculated by dividing
(x) an amount equal to (i) the aggregate principal amount of Securities which such Holder has duly surrendered for purchase in accordance with this Indenture and not withdrawn minus
(ii) if the Company has elected to pay a portion of the Purchase Price in Cash, the aggregate amount of Cash (excluding Cash payable in respect of accrued interest, Contingent Interest, if any,
or Liquidated Damages, if any) that the Company has elected to pay such Holder as part of the Purchase Price of such Securities by (y) the Market Price of a share of Common Stock as determined
with respect to such Purchase Date. The Company shall pay Cash for fractional shares of Common Stock as provided in Section 4.9 below. For purposes of making the foregoing calculation and for
determining the existence of potential fractional shares, all Securities subject to purchase by the Company held by a Holder shall be aggregated (no matter how many separate certificates are to be
presented); provided that, anything in this Indenture or the Securities to the contrary notwithstanding, in the case of the purchase of interests in Global Securities, the Company may, in its sole and
absolute discretion, instead make the foregoing calculation and determine the existence of potential fractional shares using such other method of aggregating Securities as may at the time be required
under the Applicable Procedures or as the Company may, in its sole and absolute discretion, determine is customary or appropriate in the case of Global Securities (and which may include, without
limitation, making such calculation and determining the existence of potential fractional shares on the basis of the aggregate principal amount of Securities subject to purchase that are beneficially
owned by each participant in the Depositary from whom Securities are being purchased). Each Holder whose Securities are purchased pursuant to this Article IV shall receive the same percentage
of Cash and/or Common Stock in payment of the Purchase Price for such Securities (subject to rounding and subject to differences resulting from fractional shares), except (a) as provided herein
with regard to the payment of Cash in lieu of fractional shares of Common Stock, (b) in the event that the Company is unable to purchase the Securities of a Holder or Holders for Common Stock
because any necessary qualifications or registrations of the Common Stock under applicable federal or state securities laws cannot be obtained, the Company may purchase the Securities of such Holder
or Holders for Cash, or (c) to the extent that certain Holders may be entitled to Liquidated Damages, if any, while other 

28

 

Holders
may not be entitled to Liquidated Damages, if any. All calculations made pursuant to this Section 4.7 for purposes of determining the number of shares of Common Stock issuable upon a
purchase of Securities shall be made to the nearest one-hundredth of a share, with 0.005 of a share being rounded upward. 

        Section 4.8.    Officers' Certificate.    At least five Business Days (unless a shorter period is acceptable to
the Trustee) before the Company Purchase Notice Date, the Company shall deliver an Officers' Certificate to the Trustee (provided, that at the Company's option, the matters to be addressed in such
Officers' Certificate may be divided among two or more such certificates) specifying: 

        (a)   the
manner of payment selected by the Company; 

        (b)   if
the Company elects to pay the Purchase Price, or a specified percentage or amount thereof in Common Stock pursuant to Section 4.7, that the Company will notify
the Trustee if the conditions to such payment in Common Stock set forth in Section 4.10 have not been satisfied with respect to any Holder prior to the close of business on the Business Day
immediately preceding the applicable Purchase Date (and the Trustee shall be entitled to rely upon such notice for purposes of determining the consideration payable to such Holder on such Purchase
Date); and 

        (c)   whether
the Company desires the Trustee to give the Company Purchase Notice required by Section 4.2 herein. 

        Section 4.9.    Fractional Shares.    The Company shall not issue a fractional share of Common Stock in payment
of the Purchase Price. Instead the Company shall pay Cash for the fractional share and the amount of such Cash shall be determined by multiplying the Market Price determined with respect to the
applicable Purchase Date by such fraction and rounding the product to the nearest whole cent, with one-half cent being rounded upward. The existence of fractional shares shall be
determined as provided in Section 4.7. 

        Section 4.10.    Conditions to Exercise of Right to Issue Common Stock.    The Company's right to exercise its
election to purchase the Securities, in whole or in part, pursuant to this Article IV through the issuance of shares of Common Stock shall be conditioned upon: 

        (a)   the
Company having given timely written notice in accordance with Section 4.2 herein of its election to purchase all or a specified percentage or amount of the
Securities with Common Stock as provided herein; 

        (b)   the
Common Stock being listed on a national or regional securities exchange or quoted on the National Association of Securities Dealers Automated Quotation System at
such time; 

        (c)   information
necessary to calculate the Market Price of the Common Stock being published in a daily newspaper of national circulation or being otherwise readily publicly
available; 

        (d)   the
registration of the shares of Common Stock to be issued in respect of the payment of the specified percentage or amount of the Purchase Price under the Securities
Act or the Exchange Act, in each case if required; 

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

        (f)    the
receipt by the Trustee of an Officers' Certificate (provided, that at the Company's option, the matters to be addressed in such Officers' Certificate may be divided
among two or more such certificates) stating that the shares of Common Stock to be issued by the Company in payment of the specified percentage or amount of the Purchase Price in respect of Securities
have been duly authorized and, when issued and delivered pursuant to the terms of this Indenture in payment of the specified percentage or amount of the Purchase Price in respect of Securities 

29

  

against
surrender and delivery of those Securities, shall be validly issued, fully paid and non-assessable, and, to the best of their knowledge, free from preemptive rights and stating
that conditions (a), (b), (c), (d) and (e) above have been satisfied and an Opinion of Counsel to the effect that condition (d) above has been satisfied. 

        Such
Officers' Certificate shall also set forth the Market Price to be used for determining the number of shares of Common Stock to be issued to pay the Purchase Price of any Securities
and the Last Reported Sale Price of a share of Common Stock on each Trading Day during the period during which the Market Price is calculated with respect to the applicable Purchase Date. If any of
the conditions set forth in this Section 4.10 are not satisfied with respect to a Holder or Holders prior to the close of business on the Business Day immediately preceding the applicable
Purchase Date, and the Company has elected to pay all or a portion of the Purchase Price for the Securities to be purchased as of such Purchase Date pursuant to this Article IV through the
issuance of shares of Common Stock, the Company shall pay the entire Purchase Price in respect of such Securities of such Holder or Holders in Cash (other than Securities which, pursuant to the
applicable Purchase Notice, are deemed to have been withdrawn under such circumstances). The Company shall not change the form or components or percentages or amounts of components of consideration to
be paid for the Securities once it has given the Company Purchase Notice, except as described in the previous sentence. 

        In
the event that any Common Stock shall be issuable to pay all or a portion of the Purchase Price, the Trustee shall have no responsibility for determining the Market Price of such
Common Stock or as to whether the shares of such Common Stock are duly authorized, validly issued, fully paid and non-assessable. 

        Section 4.11.    Extension of Purchase Date.    Anything in this Indenture or the Securities to the contrary
notwithstanding, if the Company is required by applicable law or regulation (including, without limitation, the Securities Act or the Exchange Act or the respective rules and regulations thereunder)
or by comment or request of the staff of the Commission, to extend a Purchase Date to a date that is later than the date specified in the first paragraph of Section 4.1(a), then all references
to that Purchase Date shall be deemed to mean such extended date, mutatis mutandis, and the Company's obligation to purchase Securities that have been duly surrendered for purchase in compliance with
this Article IV shall likewise be extended. 

 
 

ARTICLE V    
    
    PURCHASE OF SECURITIES
  AT THE OPTION OF THE HOLDER
  UPON A CHANGE OF CONTROL    
    

        Section 5.1.    Purchase at the Option of the Holder upon a Change in Control.    

        (a)   If
a Change in Control shall occur at any time prior to May 15, 2008, each Holder shall have the right, at such Holder's option, but subject to the terms and
conditions set forth in this Indenture, to require the Company to purchase any or all of such Holder's Securities on a date (the "Change in Control Purchase
Date") determined by the Company and specified in the Change in Control Company Notice given as set forth below, which date shall be (i) on or before the 55th Business
Day after the date of such Change in Control and (ii) not more than 35 Business Days nor fewer than 25 Business Days after the date of the Change in Control Company Notice. The Securities shall
be repurchased in integral multiples of $1,000 of the principal amount. The Company shall purchase such Securities at a price payable to the Holder of the Securities to be purchased equal to 100% of
the principal amount plus accrued and unpaid interest, if any, and accrued and unpaid Contingent Interest, if any, to, but excluding, the Change in Control Purchase Date (the
"Change in Control Purchase Price"); provided that payments of accrued and unpaid interest, Contingent Interest, if any, and Liquidated Damages, if any,
that are due and payable on 

30

 

any
Interest Payment Date falling on or prior to such Change in Control Purchase Date will be payable on such Interest Payment Date to the persons that were the Holders of the Securities (or one or
more predecessor Securities) at the close of business on the relevant Regular Record Date (in which case the Change in Control Purchase Price shall not include any such accrued and unpaid interest, if
any, Contingent Interest, if any, or Liquidated Damages, if any, paid or duly provided for on such Interest Payment Date). If a Change in Control occurs on or after May 15, 2008, no Holder will
have any right to require the Company to repurchase any Securities as a result of such Change in Control. 

        (b)   The
Company, or at its request (which must be received by the Paying Agent at least five Business Days (or such lesser period as agreed to by the Paying Agent) prior to
the date the Paying Agent is requested to give such notice as described below), the Paying Agent in the name of and at the expense of the Company, shall mail to all Holders and the Trustee a Change in
Control Company Notice of the occurrence of a Change in Control and of the purchase right arising as a result thereof, including the information required by Section 5.2 hereof, on or before the
20th Business Day after the occurrence of such Change in Control. 

        (c)   For
a Security to be so purchased at the option of the Holder following a Change in Control, the Paying Agent must receive a duly completed written notice of purchase (a
"Change in Control Purchase Notice"), in substantially the form attached hereto as Exhibit C, on or before 5:00 p.m. (New York City time)
on the fifth Business Day immediately preceding the applicable Change in Control Purchase Date. The Change in Control Purchase Notice shall include the information called for by such Change in Control
Purchase Notice, including the following: 

          (i)  if
certificated, the certificate numbers of the Securities which the Holder shall deliver to be purchased, or, if not certificated, such information as may be required
under the Applicable Procedures; 

         (ii)  the
portion of the principal amount of the Securities which the Holder shall deliver to be purchased, which portion must be $1,000 in principal amount or an integral
multiple thereof; 

        (iii)  that
such Securities shall be purchased as of the Change in Control Purchase Date pursuant to the terms and conditions in this Indenture and the Securities; and 

        (iv)  if
the Company elects, pursuant to a Change in Control Company Notice, to pay the Change in Control Purchase Price, in whole or in part, in Common Stock but the Change
in Control Purchase Price shall ultimately be payable to such Holder entirely in Cash because any of the conditions to the payment to such Holder of the Change in Control Purchase Price in Common
Stock are not satisfied prior to the close of business on the Business Day immediately preceding the relevant Change in Control Purchase Date, whether such Holder elects (x) to withdraw such
Change in Control Purchase Notice as to some or all of the Securities to which such Change in Control Purchase Notice relates (stating the principal amount and, if certificated, certificate numbers of
the Securities as to which such withdrawal shall relate), or (y) to receive Cash in respect of the entire Change in Control Purchase Price for all Securities (or portions thereof) to which such
Change in Control Purchase Notice relates; provided, that if a Holder, in such Holder's Change in Control Purchase Notice, fails to indicate such
Holder's choice with respect to the foregoing election, such Holder shall be deemed to have elected to receive Cash in respect of the entire Change in Control Purchase Price for all Securities subject
to such Change in Control Purchase Notice in the circumstances described in the preceding sentence. 

        In
addition, it shall be a condition to the right of any Holder to receive the Change in Control Purchase Price that such Holder shall have made delivery or book-entry
transfer of the Securities 

31

 

covered
by its Change in Control Purchase Notice to the Paying Agent prior to, on or after the Change in Control Purchase Date (together with all necessary endorsements) at the offices of the Paying
Agent, such delivery or transfer being a condition to receipt by the Holder of the Change in Control Purchase Price therefor; provided, however, that such Change in Control Purchase Price shall be so
paid pursuant to this Section 5.1 only if the Securities so delivered or transferred to the Paying Agent shall conform in all respects to the description thereof in the related Change of
Control Purchase Notice. 

        (d)   The
Company shall purchase from a Holder, pursuant to this Section 5.1, Securities if the principal amount of such Securities is $1,000 or a multiple of $1,000 if
so requested by such Holder, provided that such Holder shall have complied with the applicable procedures set forth in this Indenture and such Securities shall have been delivered to the Paying Agent
as aforesaid and not withdrawn. 

        (e)   Any
purchase by the Company contemplated pursuant to the provisions of this Article V shall be consummated by the delivery of the Change in Control Purchase Price
to be received by the Holder promptly following the later of the Change in Control Purchase Date and the time of book-entry transfer or delivery of the Securities. 

        (f)    Notwithstanding
anything herein to the contrary, any Holder delivering to the Paying Agent the Change in Control Purchase Notice contemplated by this Section 5.1
shall have the right at any time prior to 5:00 p.m. (New York City time) on the fifth Business Day prior to the applicable Change in Control Purchase Date to withdraw such Change in Control
Purchase Notice (in whole or in part) by delivery of a written notice of withdrawal to the Paying Agent in accordance with Section 5.3. 

        (g)   The
Paying Agent shall promptly notify the Company of the receipt by it of any Change in Control Purchase Notice or written notice of withdrawal thereof. 

        (h)   At
or before 11:00 a.m. (New York City time) on the Change in Control Purchase Date, the Company shall deposit with the Paying Agent (or if the Company or a
Subsidiary or an Affiliate of the Company is acting as the Paying Agent, shall segregate and hold in trust) Cash or Common Stock sufficient to pay the aggregate Change in Control Purchase Price of the
Securities to be purchased pursuant to this Section 5.1. Payment by the Paying Agent of the Change in Control Purchase Price for such Securities shall be made promptly following the later of
the Change in Control Purchase Date and the time of book-entry transfer or delivery of such Securities. If the Company is delivering Common Stock, the Company shall deliver to each Holder
(or other person) entitled to receive Common Stock, through the Paying Agent, a certificate (other than in the case of Securities in book-entry form with the Depositary, which shares of
Common Stock will be delivered in accordance with the Applicable Procedures) for the number of full shares of Common Stock issuable in payment of such Change in Control Purchase Price and Cash in lieu
of any fractional shares. The Person in whose name the certificate for Common Stock is registered shall be treated as a holder of record following the Change in Control Purchase Date. No payment or
adjustment shall be made for dividends or distributions on the Common Stock the record date for which occurred on or prior to the Change in Control Purchase Date. If the Paying Agent holds, in
accordance with the terms of this Indenture, Cash or Common Stock sufficient to pay the Change in Control Purchase Price of the Securities in respect of which a Change in Control Purchase Notice has
been duly delivered and not withdrawn on the applicable Change in Control Purchase Date, then on and after such Change in Control Purchase Date (whether or not book-entry transfer of such
Securities is made and whether or not such Securities are delivered to the Paying Agent) (i) such Securities shall cease to be outstanding and interest, Contingent Interest, if any, and
Liquidated Damages, if any, will cease to accrue on such Securities, and (ii) all other rights of the Holders of such Securities will terminate, other than the right to receive the Change in
Control Purchase Price upon delivery or transfer of such Securities as aforesaid. If a 

32

 

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

        (i)    Notwithstanding
anything herein to the contrary, the portion of the Change in Control Purchase Price, if any, that constitutes accrued and unpaid interest, if any,
Contingent Interest, if any, and Liquidated Damages, if any, on the Securities shall be paid in Cash. 

        (j)    All
questions as to the validity, eligibility (including time of receipt) and acceptance of any Securities for repurchase shall be determined by the Company, whose
determination shall be final and binding. 

33

 

        Section 5.2.    Additional Conditions and Procedures for Purchase at the Option of the Holder upon a Change in
Control.    

        (a)   The
Company shall mail a written notice of the occurrence of a Change in Control (the "Change in Control Company Notice")
to the Holders at their addresses shown in the Security register maintained by the Registrar and to the Trustee and Paying Agent, on or before the 20th Business Day after the occurrence of the Change
in Control (a "Change in Control Company Notice Date"). Each Change in Control Company Notice shall include a form of Change in Control Purchase Notice
to be completed by a Holder and shall state: 

          (i)  the
applicable Change in Control Purchase Price and Conversion Price at the time of such notice; 

         (ii)  the
Change in Control Purchase Date, which in no event shall be fewer than 25 Business Days nor more than 35 Business Days after the date of such Change in Control
Purchase Notice; 

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

        (iv)  that
Securities must be surrendered to the Paying Agent to collect payment of the Change in Control Purchase Price; 

         (v)  that
Securities as to which a Change in Control Purchase Notice has been given may be converted only if the conditions to conversion set forth in this Indenture have
been satisfied and only if the applicable Change in Control Purchase Notice has been withdrawn in accordance with the terms of this Indenture; 

        (vi)  that
the Change in Control Purchase Price for any Securities as to which a Change in Control Purchase Notice has been given and not withdrawn shall be paid by the
Paying Agent promptly following the later of the Change in Control Purchase Date and the time of book-entry transfer or delivery of such Securities; 

       (vii)  whether
the Company will pay the Change in Control Purchase Price in Cash, in Common Stock or in a combination thereof (specifying the percentages or amount, of each)
and, if Common Stock is to be issued, the method for calculating the Market Price of the Common Stock; 

      (viii)  the
procedures the Holder must follow to exercise its rights under Section 5.1 and this Section 5.2; 

        (ix)  briefly,
the conversion rights, if any, of the Holders of the Securities; 

         (x)  that,
unless the Company defaults in making payment of such Change in Control Purchase Price on Securities covered by any Change in Control Purchase Notice and not
withdrawn, interest, Contingent Interest, if any, and Liquidated Damages, if any, on the Securities as to which a Change in Control Purchase Notice has been given and not withdrawn will cease to
accrue on and after the Change in Control Purchase Date; 

        (xi)  the
CUSIP number(s) of the Securities; and 

       (xii)  the
last date and time on which, after a Change in Control Purchase Notice has been delivered, the Holder may withdraw such Change in Control Purchase Notice, which
date and time will be 5:00 p.m. (New York City time) on the fifth Business Day immediately preceding the Change in Control Purchase Date specified in Change in Control Company Notice. 

        At
the Company's request, made at least five Business Days (unless a shorter period is acceptable to the Paying Agent) prior to the date upon which such notice is to be mailed, and at
the Company's expense, the Paying Agent shall give the Change in Control Company Notice in the Company's name; 

34

 

 provided, however, that, in all cases, the text of the Change in Control Company Notice shall be prepared by the Company. 

        Section 5.3.    Effect of Change in Control Purchase Notice; Effect of Event of Default.    

        (a)   Upon
receipt by the Company of the Change in Control Purchase Notice specified in Section 5.1, the Holder of the Securities in respect of which such Change in
Control Purchase Notice was given shall (unless such Change in Control Purchase Notice is withdrawn as specified in the following two
paragraphs) thereafter be entitled to receive solely the Change in Control Purchase Price with respect to such Securities. Such Change in Control Purchase Price shall be paid by the Paying Agent to
such Holder promptly following the later of (x) the Change in Control Purchase Date with respect to such Securities (provided the conditions in Section 5.1 have been satisfied) and
(y) the time of delivery or book-entry transfer of such Securities to the Paying Agent by the Holder thereof in the manner required by Section 5.1. Securities in respect of
which a Change in Control Purchase Notice has been given by the Holder thereof may not be converted into shares of Common Stock on or after the date of the delivery of such Change in Control Purchase
Notice, unless such Change in Control Purchase Notice has first been validly withdrawn as specified in the following two paragraphs. 

        A
Change in Control Purchase Notice may be withdrawn, in whole or in part, by means of a written notice of withdrawal delivered to the office of the Paying Agent at any time prior to
5:00 p.m. New York City time on the fifth Business Day immediately preceding the Change in Control Purchase Date to which it relates specifying: 

          (i)  if
certificated, the certificate numbers of the Securities in respect of which such notice of withdrawal is being submitted, or, if not certificated, such information
as may be required under the Applicable Procedures; 

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

        (iii)  the
principal amount, if any, of such Securities which remains subject to the original Change in Control Purchase Notice and which has been or shall be delivered for
purchase by the Company. 

        If
a Change in Control Purchase Notice is duly withdrawn with respect to any Securities, then the Company will not be obligated to purchase such Securities pursuant to this
Article V. 

        (b)   There
shall be no purchase of any Securities pursuant to this Article V if an Event of Default has occurred and is continuing (other than a default that is cured
by the payment of the Change in Control Purchase Price). The Paying Agent shall promptly return to the respective Holders thereof any Securities (x) with respect to which a Change in Control
Purchase Notice has been withdrawn in compliance with this Indenture, or (y) held by it during the continuance of an Event of Default (other than a default that is cured by the payment of the
Change in Control Purchase Price) in which case, upon such return, the Change in Control Purchase Notice with respect thereto shall be deemed to have been withdrawn. 

        Section 5.4.    Securities Purchased in Part.    Any Securities that are to be purchased only in part shall be
surrendered at the office of the Paying Agent (with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or such Holder's attorney duly authorized in writing) and the Company shall execute and the Trustee shall authenticate and deliver to the Holder of such
Securities, without service charge, a new Security or Securities, of any authorized denomination as requested by such Holder in aggregate principal amount equal to, and in exchange for, the portion of
the principal amount of the Securities so surrendered which is not purchased. 

35

 

        Section 5.5.    Covenant to Comply with Securities Laws Upon Purchase of Securities.    In connection with any
offer to purchase Securities under this Article V, the Company shall, to the extent that such offer or purchase constitutes an "issuer tender offer" for purposes of
Rule 13e-4 (or any successor provision thereto) under the Exchange Act, (a) comply with Rules 13e-4 and 14e-1 (and any successor provision
thereto) under the Exchange Act, if applicable; (b) file the related Schedule TO (or any successor schedule, form or report) under the Exchange Act, if applicable; and (c) otherwise
comply with all applicable federal and state securities laws so as to permit the rights and obligations under Section 5.1 to be exercised in the time and in the manner specified in
Section 5.1. The Company shall determine whether such offer or purchase constitutes an "issuer tender offer" and whether any of the foregoing shall be applicable in its sole and absolute
discretion. 

        Section 5.6.    Repayment to the Company.    The Trustee and the Paying Agent shall return to the Company upon
written request any Cash or property that remains unclaimed as provided in paragraph 12 of the Securities, together with interest that the Trustee or Paying Agent, as the case may be, has
agreed to pay, if any, held by them for the payment of a Change in Control Purchase Price; provided, however, that to the extent that the aggregate
amount of Cash or property deposited by the Company pursuant to Section 5.1(h) exceeds the aggregate Change in Control Purchase Price of the Securities or portions thereof which the Company is
obligated to purchase as of the Change in Control Purchase Date, then, promptly on and after the Business Day following the Change in Control Purchase Date, the Trustee and the Paying Agent shall
return any such excess to the Company together with interest that the Trustee or Paying Agent, as the case may be, has agreed in writing to pay, if any. 

        Section 5.7.    Company's Right to Elect Manner of Payment of Purchase Price.    Subject to
Section 5.10, the Company may elect with respect to any Change in Control Purchase Date, to pay the Change in Control Purchase Price in respect of the Securities to be purchased pursuant to
this Indenture as of such Change in Control Purchase Date in (a) Cash or (b) Common Stock, or (c) any combination of Cash and Common Stock, subject to the conditions set forth
herein. The number of full shares of Common Stock that shall be issued to any Holder entitled to receive the Change in Control Purchase Price in whole or in part in shares of Common Stock shall be
calculated by dividing (x) an amount equal to (i) the aggregate principal amount of Securities which such Holder has duly surrendered for purchase in accordance with this Indenture and
not withdrawn minus (ii) if the Company has elected to pay a portion of the Change in Control Purchase Price in Cash, the aggregate amount of Cash (excluding Cash payable in respect of accrued
interest, Contingent Interest, if any, or Liquidated Damages, if any) that the Company has elected to pay such Holder as part of the Change in Control
Purchase Price of such Securities by (y) the Market Price of a share of Common Stock as determined with respect to such Change in Control Purchase Date. The Company shall pay Cash for
fractional shares of Common Stock as provided in Section 5.9 below. For purposes of making the foregoing calculation and for determining the existence of potential fractional shares, all
Securities subject to purchase by the Company held by a Holder shall be aggregated (no matter how many separate certificates are to be presented); provided that, anything in this Indenture or the
Securities to the contrary notwithstanding, in the case of the purchase of interests in Global Securities, the Company may, in its sole and absolute discretion, instead make the foregoing calculation
and determine the existence of potential fractional shares using such other method of aggregating Securities as may at the time be required under the Applicable Procedures or as the Company may, in
its sole and absolute discretion, determine is customary or appropriate in the case of Global Securities (and which may include, without limitation, making such calculation and determining the
existence of potential fractional shares on the basis of the aggregate principal amount of Securities subject to purchase that are beneficially owned by each participant in the Depositary from whom
Securities are being purchased). Each Holder whose Securities are purchased pursuant to this Article V shall receive the same percentage of Cash and/or Common Stock in payment of the Change in
Control Purchase Price for such Securities (subject to rounding and subject to differences resulting from fractional shares), except (a) as provided herein with regard to the payment of Cash in
lieu of fractional shares of 

36

  

Common Stock, (b) in the event that the Company is unable to purchase the Securities of a Holder or Holders for Common Stock because any necessary qualifications or registrations of the Common
Stock under applicable federal or state securities laws cannot be obtained, the Company may purchase the Securities of such Holder or Holders for Cash, or (c) to the extent that certain Holders
may be entitled to Liquidated Damages, if any, while other Holders may not be entitled to Liquidated Damages, if any. All calculations made pursuant to this Section 5.7 for purposes of
determining the number of shares of Common Stock issuable upon a purchase of Securities shall be made to the nearest one-hundredth of a share, with 0.005 of a share being rounded upward. 

        Section 5.8.    Officers' Certificate.    At least five Business Days (unless a shorter period is acceptable to
the Trustee) before the Change in Control Company Notice Date, the Company shall deliver an Officers' Certificate to the Trustee (provided, that at the Company's option, the matters to be addressed in
such Officers' Certificate may be divided among two or more such certificates) specifying: 

        (a)   the
manner of payment selected by the Company; 

        (b)   if
the Company elects to pay the Change in Control Purchase Price or a specified percentage or amount thereof in Common Stock pursuant to Section 5.7, that the
Company will notify the Trustee if the conditions to such payment in Common Stock set forth in Section 5.10 have not been satisfied with respect to any Holder prior to the close of business on
the Business Day immediately preceding the applicable Change in Control Purchase Date (and the Trustee shall be entitled to rely upon such notice for purposes of determining the consideration payable
to such Holder on such Change in Control Purchase Date); and 

        (c)   whether
the Company desires the Trustee to give the Change in Control Company Notice required by Section 5.2 herein. 

        Section 5.9.    Fractional Shares.    The Company shall not issue a fractional share of Common Stock in payment
of the Change in Control Purchase Price. Instead the Company shall pay Cash for the fractional share and the amount of such Cash shall be determined by multiplying the Market Price determined with
respect to the applicable Change in Control Purchase Date by such fraction and rounding the product to the nearest whole cent, with one-half cent being rounded upward. The existence of
fractional shares shall be determined as provided in Section 5.7. 

        Section 5.10.    Conditions to Exercise of Right to Issue Common Stock.    The Company's right to exercise its
election to purchase the Securities, in whole or in part, pursuant to this Article V through the issuance of shares of Common Stock shall be conditioned upon: 

        (a)   the
Company having given timely written notice in accordance with Section 5.1 herein of its election to purchase all or a specified percentage or amount of the
Securities with Common Stock as provided herein; 

        (b)   the
Common Stock being listed on a national or regional securities exchange or quoted on the National Association of Securities Dealers Automated Quotation System at
such time; 

        (c)   information
necessary to calculate the Market Price of the Common Stock being published in a daily newspaper of national circulation or being otherwise readily publicly
available; 

        (d)   the
registration of the shares of Common Stock to be issued in respect of the payment of the specified percentage or amount of the Change in Control Purchase Price under
the Securities Act or the Exchange Act, in each case if required; 

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

37

 

        (f)    the
receipt by the Trustee of an Officers' Certificate (provided, that at the Company's option, the matters to be addressed in such Officers' Certificate may be divided
among two or more such certificates) stating that the shares of Common Stock to be issued by the Company in payment of the specified percentage or amount of the Change in Control Purchase Price in
respect of Securities have been duly authorized and, when issued and delivered pursuant to the terms of this Indenture in payment of the specified percentage or amount of the Change in Control
Purchase Price in respect of Securities against surrender and delivery of those Securities, shall be validly issued, fully paid and non-assessable, and, to the best of their knowledge,
free from preemptive rights and stating that conditions (a), (b), (c), (d) and (e) above have been satisfied and an Opinion of Counsel to the effect that condition (d) above has
been satisfied. 

        Such
Officers' Certificate shall also set forth the Market Price to be used for determining the number of shares of Common Stock to be issued to pay the Change in Control Purchase Price
of any Securities and the Last Reported Sale Price of a share of Common Stock on each Trading Day during the period
during which the Market Price is calculated with respect to the Change in Control Purchase Date. If any of the conditions set forth in this Section 5.10 are not satisfied with respect to a
Holder or Holders prior to the close of business on the Business Day immediately preceding the applicable Change in Control Purchase Date, and the Company has elected to pay all or a portion of the
Change in Control Purchase Price for the Securities to be purchased as of such Change in Control Purchase Date pursuant to this Article V through the issuance of shares of Common Stock, the
Company shall pay the entire Change in Control Purchase Price in respect of such Securities of such Holder or Holders in Cash (other than Securities which, pursuant to the applicable Change in Control
Purchase Notice, are deemed to have been withdrawn under such circumstances). The Company shall not change the form or components or percentages or amounts of components of consideration to be paid
for the Securities once it has given the Change in Control Company Notice, except as described in the previous sentence. 

        In
the event that any Common Stock shall be issuable to pay all or a portion of the Change in Control Purchase Price, the Trustee shall have no responsibility for determining the Market
Price of such Common Stock or as to whether the shares of such Common Stock are duly authorized, validly issued, fully paid and non-assessable. 

        Section 5.11.    Extension of Change in Control Purchase Date.    Anything in this Indenture or the Securities
to the contrary notwithstanding, if the Company is required by applicable law or regulation (including, without limitation, the Securities Act or the Exchange Act or the respective rules and
regulations thereunder) or by comment or request of the staff of the Commission, to extend a Change in Control Purchase Date to a date that is later than the date specified in the applicable Change in
Control Company Notice, then all references to that Change in Control Purchase Date shall be deemed to mean such extended date, mutatis mutandis, and the Company's obligation to purchase Securities
that have been duly surrendered for purchase in compliance with this Article V shall likewise be extended. 

 
 

ARTICLE VI    
    
    COVENANTS    
    

        Section 6.1.    Payment of Securities.    

        The
Company shall make all payments in respect of the Securities on the dates and in the manner provided in the Securities or pursuant to this Indenture. Principal, Redemption Price,
Purchase Price and Change in Control Purchase Price and accrued and unpaid interest, Contingent Interest, if any, and Liquidated Damages, if any, shall be considered paid on the applicable date due if
by 11:00 a.m. (New York City time) on such date the Paying Agent holds, in accordance with this Indenture, Cash or securities, if permitted hereunder, sufficient to pay all such amounts then
due. 

38

 

        If,
pursuant to the terms of the Registration Rights Agreement, the Company is required to pay Liquidated Damages with respect to any or all of the Securities, not later than the close
of business on the Business Day immediately preceding the date on which such accrued and unpaid Liquidated Damages are due and payable, the Company shall notify the Trustee of the amount of Liquidated
Damages per $1,000 principal amount of Debentures to be paid on such date and, to the extent relevant, the names of the Holders or beneficial owners of interests in a Global Security, as applicable,
entitled to receive such Liquidated Damages on such date. 

        Payment
of the principal of and accrued and unpaid interest and Contingent Interest, if any, on the Securities shall be in Cash and/or in Common Stock, as the case may be. 

        Except
as otherwise provided pursuant to Article XII, on each Interest Payment Date, the Company shall pay accrued and unpaid interest, if any, Contingent Interest, if any, and
Liquidated Damages, if any, on the Securities to the Person in whose name the Securities are registered at the close of business on the Regular Record Date next preceding such Interest Payment Date,  provided,
however, that if a Security is redeemed pursuant to Article III hereof or the Holder elects to require the Company to repurchase a
Security pursuant to either Article IV or Article V hereof on a Purchase Date or Change in Control Purchase Date that is after the Regular Record Date and prior to the corresponding
Interest Payment Date, accrued and unpaid interest, Contingent Interest, if any, and Liquidated Damages, if any, on such Security to, but excluding, the applicable Redemption Date, Purchase Date or
Change in Control Purchase Date will be paid to the Holder of such Security as part of the Redemption Price, Purchase Price or Change in Control Purchase Price, as the case may be, of such Security.
For the avoidance of doubt, if a Security is redeemed pursuant to Article III or repurchased pursuant to either Article IV or Article V on a day that is an Interest Payment Date,
then accrued and unpaid interest, Contingent Interest, if any, and Liquidated Damages, if any, payable on such Interest Payment Date will be paid on such Interest Payment Date to the Holder of such
Security at the close of business on the Regular Record Date next preceding such Interest Payment Date. 

        Holders
must surrender the Securities to the Paying Agent to collect payment of principal. Payment of interest, Contingent Interest, if any, and Liquidated Damages, if any, on Securities
will be made by check mailed to the address of the Person entitled thereto as such address appears in the Security register or, at the option of the Company, by wire transfer of immediately available
funds. 

        Notwithstanding
anything to the contrary contained in this Indenture other than the provisions of Section 8.10 (which Section 8.10 shall be applicable instead of this
paragraph in the event that the Trustee fixes a record date and payment date under the circumstances provided in such Section 8.10), any interest, Contingent Interest, if any, and Liquidated
Damages, if any, with respect to any Security which shall be payable, but shall not be punctually paid or duly provided for, on any Interest Payment Date for such Security (herein called
"Defaulted Interest") shall forthwith cease to be payable to the Holder thereof on the relevant Regular Record Date by virtue of having been such
Holder; and such Defaulted Interest may be paid by the Company, at its election in each case, as provided in clause (i) or (ii) below: 

          (i)  The
Company may elect to make payment of any Defaulted Interest to the Holder of such Security (or a predecessor Security thereof) at the close of business on a special
record date (a "Special Record Date") for the payment of such Defaulted Interest, which shall be fixed in the following manner. The Company shall notify
the Trustee in writing of the amount of Defaulted Interest proposed to be paid on such Security and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an
amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements reasonably satisfactory to the Trustee for such deposit on or prior
to the date of the proposed payment, such money when so deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this paragraph 

39

 

provided.
Thereupon, the Company shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 days and no less than 10 days prior to the
date of the proposed payment and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall, in the name and at the expense of the Company,
promptly cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed to the Holders of such Securities at their respective addresses in the
register of Securities maintained by the Registrar not less than 10 days prior to such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date
therefore having been mailed as aforesaid, such Defaulted Interest shall be paid on such payment date to the Holder of such Security (or a predecessor Security thereof) at the close of business on
such Special Record Date and shall no longer be payable pursuant to the following clause (ii). 

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

        Section 6.2.    SEC and Other Reports to the Trustee.    

        In
accordance with TIA Section 314(a)(1), the Company shall deliver to the Trustee in any manner provided by Section 13.2 hereof, within 15 calendar days after it files
such annual and quarterly reports, information, documents and other reports with the SEC, copies of its annual report and of the information, documents and other reports (or copies of such portions of
any of the foregoing as the SEC may by rules and regulations prescribe) which the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act; or, in the event
the Company is at any time not subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, it shall comply with TIA Section 314(a)(1). 

        Section 6.3.    Compliance Certificate.    

        In
accordance with TIA Section 314(a)(4), the Company shall deliver to the Trustee within 120 calendar days after the end of each fiscal year of the Company (beginning with the
fiscal year ending December 31, 2003) an Officers' Certificate stating whether or not to the knowledge of the signers thereof, the Company is in default in the performance and observance of any
of the terms, provisions and conditions of this Indenture and if the Company shall be in default, specifying all such defaults and the nature and status thereof of which they may have knowledge. 

        Section 6.4.    Maintenance of Office or Agency of the Registrar, Paying Agent and Conversion Agent.    

        The
Company will maintain in the Borough of Manhattan, The City of New York, an office or agency of the Registrar, Paying Agent and Conversion Agent where Securities may be presented or
surrendered for payment, where Securities may be surrendered for registration of transfer, exchange, redemption, repurchase or conversion and where notices and demands to or upon the Company in
respect of the Securities and this Indenture may be served. The office of JPMorgan Chase Bank, 4 New York Plaza, 15th Floor, New York, New York 10004, Attention: Institutional
Trust Services, shall initially be such office or agency for all of the aforesaid purposes. The Company shall give prompt written notice to the Trustee of the location, and of any change in the
location, of any such office or agency. If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the address of the Trustee set forth in Section 13.2. 

        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 

40

 

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. 

        Section 6.5.    Delivery of Information Required Under Rule 144A.    

        At
any time when the Company is not subject to Section 13 or 15(d) of the Exchange Act, upon the written request of a Holder or any beneficial owner of Securities, the Company
will make available the information required pursuant to Rule 144A(d)(4) under the Securities Act to such Holder or beneficial owner of Securities, or to a prospective purchaser of any such
Security designated by any such Holder or beneficial owner, as the case may be, to the extent required to permit compliance by such Holder or beneficial owner with Rule 144A under the
Securities Act. In the case of a request from any person claiming to be such a beneficial owner, the Company may require the delivery by such person of such information and documents as the Company
may reasonably request to establish that such person is in fact a beneficial owner of Securities. 

 
 

ARTICLE VII    
    
    SUCCESSOR CORPORATION    
    

        Section 7.1.    When Company May Merge or Transfer Assets.    

        The
Company shall not consolidate with or merge into any other person or convey, transfer or lease its properties and assets substantially as an entirety to any person, unless: 

        (a)   either
(i) the Company shall be the surviving Person or (ii) the Person (if other than the Company) formed by such consolidation or into which the Company
is merged or the Person to which the properties and assets of the Company are conveyed, transferred or leased substantially as an entirety (1) shall be a corporation, limited liability company,
partnership, trust or other entity organized and existing under the laws of the United States or any State thereof or the District of Columbia and (2) shall expressly assume all of the
obligations of the Company under the Securities and this Indenture by an indenture supplement hereto executed as delivered by the Company or the Trustee; 

        (b)   immediately
after giving effect to such transaction, there is no Event of Default or event that, with notice or lapse of time or both, would be an Event of Default; and 

        (c)   the
Company shall have delivered to the Trustee an Officers' Certificate stating that such consolidation, merger, conveyance, transfer or lease and, if a supplemental
indenture is required in connection with such transaction, such supplemental indenture, comply with this Article VII and that all conditions precedent set forth in this Article VII
relating to such transaction have been satisfied and, if requested by the Trustee, an Opinion of Counsel stating that the conditions precedent set forth in clauses (a) and (c) of this
Section 7.1 relating to such transaction have been satisfied and, if a supplemental indenture is required in connection with such transaction, such supplemental indenture complies with this
Section 7.1. 

        The
successor Person formed by such consolidation or into which the Company is merged or the successor Person to which such conveyance, transfer or lease is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under this Indenture and the Securities with the same effect as if such successor had been named as the Company herein; and
thereafter, the Company shall be discharged from all obligations and covenants under this Indenture and the Securities. 

41

 
 
 

ARTICLE VIII    
    
    DEFAULTS AND REMEDIES    
    

        Section 8.1.    Events of Default.    

        So
long as any Securities are outstanding, each of the following shall be an "Event of Default":

        (a)   default
by the Company in the payment of the principal amount with respect to any Security, when that payment becomes due and payable; 

        (b)   default
by the Company in the payment when due of any accrued and unpaid interest or any accrued and unpaid Contingent Interest, if any, on the Securities or any accrued
and unpaid Liquidated Damages, if any, with respect to the Securities due to a breach of the Registration Rights Agreement, and continuance of such default for a period of 30 days; 

        (c)   failure
by the Company to comply in any material respect with any of its agreements in the Securities or this Indenture (other than those referred to in clauses
(a) and (b) above) and such failure continues for 60 days after receipt by the Company of a Notice of Default; 

        (d)   the
occurrence of an event of default as defined in another mortgage, indenture or debt instrument under which there may be issued, or by which there may be secured or
evidenced, any indebtedness of the Company for borrowed money, other than the Securities, in an amount in excess of $20,000,000 and which results in such indebtedness in an amount in excess of
$20,000,000 becoming or being declared due and payable prior to the date on which it would otherwise become due and payable, and the Company has not remedied or cured the default or the default has
not been waived by the holders of the indebtedness or the acceleration is not rescinded or annulled or the indebtedness has not been repaid, in each case within 60 days after receipt by the
Company of a Notice of Default; provided, however, that if, prior to a declaration of acceleration of the maturity of the Securities pursuant to
Section 8.2 or the entry of a judgment in favor of the Trustee in a suit pursuant to Section 8.8, such default shall have been remedied or cured or shall have been waived by the holders
of such indebtedness or such acceleration has been rescinded or annulled or such indebtedness has been repaid, then the Event of Default hereunder by reason thereof shall be deemed to have been
thereupon remedied, cured and waived without further action on the part of either the Trustee or any of the Holders of the Securities; 

        (e)   the
Company or any Significant Subsidiary, pursuant to or under or within the meaning of any Bankruptcy Law: 

          (i)  commences
a voluntary case or proceeding; 

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

        (iii)  consents
to the appointment of a Custodian of it or for any substantial part of its property; 

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

         (v)  files
a petition in bankruptcy or answer or consent seeking reorganization or relief; or 

        (vi)  consents
to the filing of such petition or the appointment of or taking possession by a Custodian; or 

42

 

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

          (i)  is
for relief against the Company or any Significant Subsidiary, in an involuntary case or proceeding, or adjudicates the Company or any Significant Subsidiary
insolvent or bankrupt; 

         (ii)  appoints
a Custodian of the Company or any Significant Subsidiary, or for any substantial part of its property; or 

        (iii)  orders
the winding up or liquidation of the Company or any Significant Subsidiary, 

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

        A
Default under clause (c) or (d) above is not an Event of Default unless and until (i) the Company shall have actually received a Notice of Default and
(ii) the Company does not cure such Default (or such Default is not waived or does not cease to exist) within the time specified in clause (c) or (d) above, as the case may be,
after the Company's actual receipt of such Notice of Default. The term "Notice of Default" means written notice to the Company from the Trustee, or to
the Company and the Trustee from the Holders of at least 25% in aggregate principal amount of the Securities at the time outstanding, in each case specifying the Default, demanding that it be remedied
and stating that such notice is a Notice of Default. 

        The
Company shall deliver to the Trustee, within five Business Days after an Officer of the Company shall have obtained actual knowledge of the occurrence of any Event of Default, a
notice setting forth the nature of such Event of Default and the action which the Company is taking or proposes to take with respect thereto. 

        Section 8.2.    Acceleration.    

        If
an Event of Default (other than an Event of Default specified in Section 8.1(e) or (f)) occurs and is continuing, the Trustee by notice to the Company, or the Holders of at
least 25% in aggregate principal amount of the Securities at the time outstanding by notice to the Company and the Trustee, may declare the principal amount plus accrued and unpaid interest, if any,
and accrued and unpaid Contingent Interest, if any, through the date of acceleration on all the Securities to be immediately due and payable. Upon such a declaration, such accelerated amount shall be
due and payable immediately. 

        If
an Event of Default specified in Section 8.1(e) or (f) occurs and is continuing, the principal amount plus accrued and unpaid interest, if any, and accrued and unpaid
Contingent Interest, if any, through the date of acceleration on all the Securities shall become and be immediately due and payable without any declaration or other act on the part of the Trustee or
any Securityholders. 

        The
Holders of not less than a majority in aggregate principal amount of the Securities at the time outstanding, by notice to the Trustee and the Company (and without notice to any other
Securityholder), may rescind and annul an acceleration and its consequences if (i) if all existing Events of Default have been cured or waived or ceased to exist, except non-payment
of the principal amount plus accrued and unpaid interest, if any, and Contingent Interest, if any, that have become due solely as a result of acceleration; (ii) the rescission would not
conflict with any final and unappealable judgment or order of a court of competent jurisdiction; and (iii) if all amounts due to the Trustee under Section 9.7 have been paid. No such
rescission shall affect any subsequent Default or impair any right consequent thereto. 

        Section 8.3.    Other Remedies.    

        If
an Event of Default occurs and is continuing, the Trustee may, but shall not be obligated to, pursue any available remedy to collect the payment of the principal amount plus accrued
and unpaid 

43

  

interest, if any, and accrued and unpaid Contingent Interest, if any, on the Securities or to enforce the performance of any provision of the Securities or this Indenture. 

        The
Trustee may maintain a proceeding even if the Trustee does not possess any of the Securities or does not produce any of the Securities in the proceeding. A delay or omission by the
Trustee or any Securityholder in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of, or acquiescence in, the Event of
Default. No remedy is exclusive of any other remedy. All available remedies are cumulative. 

        Section 8.4.    Waiver of Past Defaults.    

        The
Holders of a majority in aggregate principal amount of the Securities at the time outstanding, by notice to the Trustee (and without notice to any other Securityholder), may waive on
behalf of the Holders of all Securities any Default or other default hereunder and its consequences except: 

        (a)   a
default in the payment, when that payment becomes due and payable, of the principal amount with respect to any Security; or 

        (b)   a
default in the payment when due of any accrued and unpaid interest or accrued and unpaid Contingent Interest, if any, on or any accrued and unpaid Liquidated Damages
with respect to the Securities, which default continues for 30 days; 

        (c)   a
default with respect to any provision of this Indenture which cannot be amended without the consent of each Holder affected by the amendment; or 

        (d)   a
default which constitutes a failure to convert any Security in accordance with their terms and the terms of this Indenture. 

        When
a Default or other default hereunder is waived, it is deemed cured, but no such waiver shall extend to any subsequent or other Default or other default hereunder or impair any
consequent right.
This Section 8.4 shall be in lieu of Section 316(a)(1)(B) of the TIA and such Section 316(a)(1)(B) is hereby expressly excluded from this Indenture, as permitted by the TIA. 

        Section 8.5.    Control by Majority.    

        The
Holders of a majority in aggregate principal amount of the Securities at the time outstanding may direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee or of exercising any trust or power conferred on the Trustee. However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture or that the
Trustee determines in good faith is prejudicial to the rights of other Securityholders or would involve the Trustee in personal liability unless the Trustee is offered security or indemnity
satisfactory to it. This Section 8.5 shall be in lieu of Section 316(a)(1)(A) of the TIA and such Section 316(a)(1)(A) is hereby expressly excluded from this Indenture, as
permitted by the TIA. 

        Section 8.6.    Limitation on Suits.    

        A
Securityholder may not institute any proceeding, judicial or otherwise, with respect to this Indenture or for the appointment of a receiver or trustee, or for any other remedy under
this Indenture, unless: 

        (a)   the
Holder has previously given the Trustee written notice of a continuing Event of Default with respect to the Securities; 

        (b)   the
Holders of at least 25% in aggregate principal amount of the Securities at the time outstanding have made a written request to the Trustee to institute such
proceeding as trustee and have offered to the Trustee security or indemnity reasonably satisfactory to the Trustee against any loss, liability or expense; 

44

 

        (c)   the
Trustee has not received from the Holders of a majority in aggregate principal amount of the Securities at the time outstanding a direction inconsistent with the
request during the 60-day period referred to in clause (d) below; and 

        (d)   the
Trustee has failed to institute such proceeding within 60 days after receipt of such notice, request and offer of indemnity. 

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

        Section 8.7.    Rights of Holders to Receive Payment or to Convert.    

        Notwithstanding
any other provision of this Indenture, the right of any Holder to receive payment of the principal of, interest, Contingent Interest, if any, and Liquidated Damages, if
any, on the Securities held by such Holder, on or after the respective due dates expressed in the Securities and in this Indenture, and to convert such Securities in accordance with
Article XII, or to bring suit for the enforcement of any such payment on or after such respective dates or the right to convert, shall not be impaired without the consent of such Holder. 

        Section 8.8.    Collection Suit by Trustee.    

        If
an Event of Default described in Section 8.1(a) or (b) occurs and is continuing, the Trustee may recover judgment in its own name and as trustee of an express trust
against the Company or another obligor on the Securities for the whole amount owing with respect to the Securities and the amounts provided for in Section 9.7. 

        Section 8.9.    Trustee May File Proofs of Claim.    

        In
case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the
Company or any other obligor upon the Securities or the property of the Company or of such other obligor or their creditors, the Trustee (irrespective of whether the principal, interest or Contingent
Interest, if any, on the Securities shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company
for the payment of any such amount) shall be entitled and empowered, by intervention in such proceeding or otherwise: 

        (a)   to
file and prove a claim for the whole amount of the principal, interest or Contingent Interest, if any, owing and unpaid with respect to the Securities and to file
such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel or any other amounts due the Trustee under Section 9.7) and of the Holders allowed in such judicial proceeding, and 

        (b)   to
collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same; 

and
any Custodian in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay 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 9.7. 

        Nothing
contained herein 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. 

45

 

        Section 8.10.    Priorities.    

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

	 	 	FIRST:	to the Trustee for amounts due under Section 9.7;
	

 	
 	

SECOND:	

to Securityholders for amounts due and unpaid on the Securities for the principal, interest, Contingent Interest, if any, and Liquidated Damages, if any, as the case may be, ratably, without preference or priority of any kind, according to such
amounts due and payable on the Securities; and
	

 	
 	

THIRD:	

the balance, if any, to the Company.

        The
Trustee may fix a record date and payment date for any payment to Securityholders pursuant to this Section 8.10. At least 15 days before such record date, the Trustee
shall mail to each Securityholder and the Company a notice that states the record date, the payment date and the amount to be paid. 

        Section 8.11.    Undertaking for Costs.    

        In
any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion
may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys'
fees and expenses, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant. This Section 8.11 does not apply
to a suit by the Trustee, a suit by a Holder pursuant to Section 8.7 or a suit by Holders of more than 10% in aggregate principal amount of the Securities at the time outstanding. This
Section 8.11 shall be in lieu of Section 315(e) of the TIA and such Section 315(e) of the TIA is hereby expressly excluded from this Indenture, as permitted by the TIA. 

        Section 8.12.    Restoration of Rights and Remedies.    

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

        Section 8.13.    Waiver of Stay, Extension or Usury Laws.    

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

46

 

 
 

ARTICLE IX    
    
    TRUSTEE    
    

        Section 9.1.    Duties of Trustee.    

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

         (ii)  in
the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein,
upon Officers' Certificates, Opinions of Counsel, certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture, but in the case of any such Officers'
Certificates, Opinions of Counsel, 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. 

This
Section 9.1(b) shall be in lieu of Section 315(a) of the TIA and such Section 315(a) is hereby expressly excluded from this Indenture, as permitted by the TIA. 

        (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)  this
Section (c) does not limit the effect of Section (b) of this Section 9.1; 

         (ii)  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 

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

Subparagraphs
(c)(ii) and (iii) above shall be in lieu of Sections 315(d)(2) and 315(d)(3) of the TIA, respectively, and such Sections 315(d)(2) and 315(d)(3) are hereby expressly
excluded from this Indenture, as permitted by the TIA. 

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

        (e)   The
Trustee may refuse to perform any duty or exercise any right or power or expend or risk its own funds or otherwise incur any financial liability unless it receives
security or indemnity reasonably satisfactory to it against any loss, liability or expense. 

        (f)    Money
held by the Trustee in trust hereunder need not be segregated from other funds except to the extent required by law. The Trustee (acting in any capacity hereunder)
shall be under no liability for interest on any money received by it hereunder unless otherwise agreed in writing with the Company. 

        Section 9.2.    Rights of Trustee.    

        Subject
to its duties and responsibilities under Section 9.1 and under the TIA, 

47

 

        (a)   the
Trustee may conclusively rely and shall be protected in acting or refraining from acting upon any Officers' Certificate, Opinion of Counsel, Company Request or
Company Order, resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or
document believed by it to be genuine and to have been signed or presented by the proper party or parties; 

        (b)   whenever
in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any
action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith on its part, conclusively rely upon an Officers' Certificate; 

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

        (d)   the
Trustee shall not be liable for any action taken, suffered, or omitted to be taken by it in good faith which it believes to be authorized or within its rights or
powers conferred under this Indenture; 

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

        (f)    the
Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order or direction of any of the Holders,
pursuant to the provisions of this Indenture, unless such Holders shall have offered to the Trustee security or indemnity satisfactory to it against the costs, expenses and liabilities which may be
incurred therein or thereby; 

        (g)   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 may be sufficiently evidenced by a Board Resolution; 

        (h)   the
Trustee shall not be bound to make any investigation into the facts or matters stated in any Officers' Certificate, Opinion of Counsel, Company Request or Company
Order, resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document,
but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit and shall incur no liability or additional liability of any kind by
reason of such inquiry or investigation; 

        (i)    the
Trustee shall not be deemed to have notice of any Default or Event of Default unless a Responsible Officer of the Trustee has actual knowledge thereof or unless
written notice of any event which is in fact such Default or Event of Default is received by a Responsible Officer of the Trustee at its Corporate Trust Office and such notice references the
Securities and this Indenture; 

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

        (k)   the
Trustee may request that the Company deliver an Officers' 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 Officers' Certificate may be signed by any person authorized to sign an Officers' Certificate, including any person specified as so authorized
in any such certificate previously delivered and not superseded. 

48

 

        Section 9.3.    Individual Rights of Trustee.    

        The
Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Company or its Affiliates with the same rights it would
have if it were not Trustee. Any Paying Agent, Registrar, Conversion Agent, Bid Solicitation Agent or co-registrar may do the same with like rights. However, the Trustee must comply with
Sections 9.10 and 9.11. 

        Section 9.4.    Trustee's Disclaimer.    

        The
Trustee makes no representation as to the validity or adequacy of this Indenture or the Securities, it shall not be accountable for the Company's use or application of the proceeds
from the Securities, it shall not be responsible for any statement in any registration statement for the Securities under the Securities Act or in any offering document for the Securities, this
Indenture or the Securities (other than its certificate of authentication), or the determination as to which beneficial owners are entitled to receive any notices hereunder. 

        Section 9.5.    Notice of Defaults.    

        If
a Default occurs and if it is known to the Trustee, the Trustee shall give to each Securityholder notice of the Default within 90 days after it occurs, unless such Default
shall have been cured or waived or ceases to exist before the giving of such notice. Notwithstanding the preceding sentence, except in the case of a Default described in Section 8.1(a) or (b),
the Trustee may withhold the notice if and so long as a committee of its Responsible Officers in good faith determines that withholding the notice is in the best interest of the Securityholders and  provided,
further, that in the case of any Default described in Section 8.1(f), no such notice shall be given to Holders until at least
30 days after the occurrence thereof. The preceding sentence shall be in lieu of the proviso to Section 315(b) of the TIA and such proviso is hereby expressly excluded from this
Indenture, as permitted by the TIA. 

        Section 9.6.    Reports by Trustee to Holders.    

        Within
60 days after each May 15 beginning with May 15, 2004, the Trustee shall mail to each Securityholder a brief report dated as of such May 15 that
complies with TIA Section 313(a), if required by such Section 313(a). The Trustee also shall comply with TIA Section 313(b). 

        A
copy of each report at the time of its mailing to Securityholders shall be filed with the SEC (if required by the TIA) and each securities exchange, if any, on which the Securities are
listed. The Company agrees to notify the Trustee promptly whenever the Securities become listed on any securities exchange and of any delisting thereof. 

        Section 9.7.    Compensation and Indemnity.    

        The
Company agrees to: 

        (a)   pay
to the Trustee from time to time such compensation as the Company and the Trustee shall from time to time agree in writing for all services rendered by it hereunder
(which compensation shall not be limited (to the extent permitted by law) by any provision of law in regard to the compensation of a trustee of an express trust); 

        (b)   reimburse
the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any provision of this
Indenture (including the compensation agreed to pursuant to clause (a) above and the reasonable expenses, advances and disbursements of its agents and counsel), except any such expense,
disbursement or advance as may be attributable to its own negligence, bad faith or willful misconduct; and 

        (c)   indemnify
the Trustee or any predecessor Trustee and their agents for, and to hold them harmless against, any and all loss, damage, claim, liability, cost or expense
(including reasonable fees and disbursements of legal counsel, and taxes (other than taxes based upon, measured by or 

49

 

determined
by the income of the Trustee or any predecessor Trustee or any of their respective agents or of any other person)) incurred without negligence, bad faith or willful misconduct on the part
of any of them, arising out of or in connection with the acceptance or administration of this trust, including the reasonable costs and expenses of defending itself against any claim or liability in
connection with the exercise or performance of any of its powers or duties hereunder, except for claims arising out of negligence, bad faith or willful misconduct on any of them. 

        The
Company shall have the right to assume the defense of any such claim or liability for which indemnity has been or may be sought pursuant to the immediately preceding paragraph and
may employ counsel reasonably acceptable to the Trustee. In the event that the Company assumes the defense of such matter, the Trustee shall have the right to employ separate counsel in any such
action or proceeding and participate in the investigation and defense thereof, and the Company shall pay the reasonable fees and disbursements of such separate counsel;  provided, however, that the
Trustee may only employ separate counsel at the expense of the Company if in the reasonable judgment of the Trustee
(i) a conflict of interest exists by reason of common representation (if the Company is a party to the applicable action or proceeding) or (ii) there are legal defenses available to the
Trustee that are different from or are in addition to those available to the Company (if the Company is a party to the applicable action or proceeding) or if all parties commonly represented do not
agree as to the action (or inaction) of counsel. 

        To
secure the Company's payment obligations in this Section 9.7, 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 the principal of or interest, Contingent Interest, if any, and Liquidated Damages, if any, as the case may be, on any Securities and except for shares of Common Stock
or other property that are held for delivery upon conversion of Securities. 

        The
Company's payment obligations pursuant to this Section 9.7 shall survive the discharge of this Indenture and the resignation or removal of the Trustee. When the Trustee incurs
expenses after the occurrence of a Default specified in Section 8.1 (e) or (f), the expenses including the reasonable fees and disbursements of its legal counsel, are intended to
constitute expenses of administration under any applicable Bankruptcy Law. 

        Section 9.8.    Replacement of Trustee.    

        The
Trustee may resign by so notifying the Company; provided, however, that no such resignation shall be effective until a successor
Trustee has accepted its appointment pursuant to this Section 9.8. The Holders of a majority in aggregate principal amount of the Securities at the time outstanding may remove the Trustee by so
notifying the Trustee and the Company; provided that no such removal shall be effective until a successor Trustee has accepted its appointment pursuant to this Section 9.8. The Company shall
remove the Trustee if: 

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

        (b)   the
Trustee is adjudged bankrupt or insolvent; 

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

        (d)   the
Trustee otherwise 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, by resolution of its Board of Directors, a
successor Trustee. 

        A
successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company satisfactory in form and substance to the retiring Trustee and 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 

50

  

Trustee shall mail a notice of its succession to Securityholders. The retiring Trustee shall promptly transfer all money, securities and other property held by it as Trustee to the successor Trustee,
subject to the lien provided for in Section 9.7. 

        If
a successor Trustee does not take office within 30 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company or the Holders of a majority in
aggregate principal amount of the Securities at the time outstanding may petition at the expense of the Company any court of competent jurisdiction for the appointment of a successor Trustee. 

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

        Section 9.9.    Successor Trustee by Merger.    

        If
the Trustee consolidates with, merges or converts into, or transfers all or substantially all its corporate trust business or assets to, another corporation or other entity, the
resulting, surviving or transferee corporation or other entity, without any further act, shall be the successor Trustee. 

        Section 9.10.    Eligibility; Disqualification.    

        The
Trustee shall at all times satisfy the requirements of TIA Sections 310(a)(1) and 310(b). The Trustee (or its parent holding company) shall have a combined capital and surplus of at
least $50,000,000 as set forth in its most recent published annual report of condition. Nothing contained herein shall prevent the Trustee from filing with the Commission the application referred to
in the penultimate paragraph of TIA Section 310(b). 

        Section 9.11.    Preferential Collection of Claims Against Company.    

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

 
 

ARTICLE X    
    
    DISCHARGE OF INDENTURE    
    

        Section 10.1.    Discharge of Liability on Securities.    

        When
(1) the Company shall deliver to the Registrar for cancellation all Securities theretofore authenticated (other than any Securities which have been destroyed, lost or stolen
and in lieu of or in substitution for which other Securities shall have been authenticated and delivered) and not theretofore canceled or delivered to the Registrar for cancellation, or (2) all
the Securities theretofore authenticated and not theretofore canceled or delivered to the Registrar for cancellation (other than any Securities which have been destroyed, lost or stolen and in lieu or
in substitution for which other Securities shall have been authenticated and delivered) shall have (a) been delivered for conversion and the Company shall have delivered to the Conversion Agent
the shares of Common Stock (or other securities or property to be delivered upon such conversion in accordance with the terms of this Indenture) and Cash in lieu of fractional shares that the Company
is required to deliver upon such conversion pursuant to Article XII of this Indenture and/or (b) become due and payable on a Purchase Date, Change in Control Purchase Date, Stated
Maturity, Redemption Date or date of acceleration, as applicable, and the Company shall deposit with the Trustee or a Paying Agent Cash or shares of Common Stock or a combination thereof, as
applicable (except for the payment of any amounts due and payable on all Securities at Stated Maturity, upon acceleration, on a Redemption Date or on the May 15, 2008 Purchase Date, which the
Company shall be required to pay only in Cash), sufficient to pay all amounts owing in respect of such Securities, including the principal amount and accrued and unpaid interest, accrued and unpaid
Contingent Interest, if any, and accrued and unpaid Liquidated Damages, if any, to such Stated Maturity, Purchase Date, Change in Control Purchase Date, 

51

 

Redemption
Date or date of acceleration, as the case may be, and if in either case (1) or (2) the Company shall also pay or cause to be paid all other sums payable hereunder by the
Company, then this Indenture shall cease to be of further effect (except as to (i) in the case of clause (2)(a) above, rights hereunder of Holders to receive Common Stock (or other
securities or property, as the case may be) issuable upon conversion of Securities and Cash in lieu of fractional shares; (ii) in the case of clause (2)(b) above, rights hereunder of
Holders to receive payments of the amounts due, including accrued and unpaid interest, Contingent Interest, if any, and Liquidated Damages, if any, with respect to the Securities on such Purchase
Date, Change in Control Purchase Date, Stated Maturity, Redemption Date or date of acceleration, as the case may be; and (iii) the rights, obligations, immunities and indemnities of the
Trustee, Paying Agent, Conversion Agent, Bid Solicitation Agent and Registrar under the Indenture with respect to the conversion and payment of such Securities) and the Trustee, on demand of the
Company accompanied by an Officers' Certificate and an Opinion of Counsel and at the cost and expense of the Company, shall execute proper instruments acknowledging satisfaction of and discharging the
Indenture with respect to the Securities; the Company, however, hereby agrees to reimburse the Trustee, Paying Agent, Conversion Agent, Bid Solicitation Agent and Registrar for any costs or expenses
thereafter reasonably and properly incurred by the Trustee, Paying Agent, Conversion Agent, Bid Solicitation Agent and Registrar, respectively, and to compensate the Trustee, Paying Agent, Conversion
Agent, Bid Solicitation Agent and Registrar for any services thereafter reasonably and properly rendered by the Trustee, Paying Agent, Conversion Agent, Bid Solicitation Agent and Registrar, as the
case may be, in connection with the Indenture with respect to the Securities. 

        Section 10.2.    Repayment to the Company.    

        The
Trustee and the Paying Agent shall return to the Company upon written request any Cash or securities or other property held by them for the payment of any amount payable on or with
respect to
the Securities that remains unclaimed for two years after the date the applicable payment became due, subject to applicable unclaimed property law. After return to the Company, Holders entitled to the
Cash or securities or other property must look to the Company for payment as general creditors unless an applicable abandoned property law designates another person and the Trustee and the Paying
Agent shall have no further liability to the Securityholders with respect to such Cash or securities or other property for that period commencing after the return thereof. 

 
 

ARTICLE XI    
    
    AMENDMENTS    
    

        Section 11.1.    Without Consent of Holders.    

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

        (a)   evidence
the succession of another Person to the Company and the assumption by any such successor of the obligations of the Company hereunder and under the Securities; 

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

        (c)   cure
any ambiguity, omission, defect or inconsistency or to correct or supplement any provision herein or in the Securities that may be inconsistent with any other
provision herein or therein; 

        (d)   make
any changes or modifications necessary in connection with the registration of the Securities under the Securities Act or the qualification of this Indenture under
the TIA; 

        (e)   secure
the Securities; 

52

 

        (f)    evidence
and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Securities or to facilitate the administration of the trust
hereunder by the Trustee in accordance with the terms herein; 

        (g)   add
any additional Events of Default with respect to all or any of the Securities; 

        (h)   modify
any provision of this Indenture or the Securities in order to conform that provision to the description thereof set forth in an Offering Memorandum; 

        (i)    modify
the form of Transfer Certificate or Common Stock Transfer Certificate or any other provision of this Indenture or the Securities in order to ensure that transfers
of Securities and shares of Common Stock issued upon conversion of Securities comply with the Securities Act and the rules and regulations thereunder; 

        (j)    comply
with Section 12.4; and 

        (k)   make
any other changes that would not adversely affect in any material respect the interest of the Holder of any outstanding Security. 

        Section 11.2.    With Consent of Holders.    

        Except
as provided below in this Section 11.2, this Indenture or the Securities may be amended, modified or supplemented, and compliance with or default under any provision of
this Indenture or the Securities may be waived, and the Company may add any provisions to or change or eliminate any provisions of this Indenture or the Securities or modify the rights of Holders, in
each case, with the written consent or affirmative vote of the Holders of not less than a majority of the aggregate principal amount of the Securities at the time outstanding. However, without the
written consent or the affirmative vote of each Holder of Securities affected thereby, an amendment or waiver under this Section 11.2 may not: 

        (a)   reduce
the principal amount, or extend the Stated Maturity, of any Security; 

        (b)   reduce
the Redemption Price, Purchase Price or Change in Control Purchase Price of any Security; 

        (c)   adversely
affect the right of the Holder to convert any Security; 

        (d)   except
as otherwise provided herein or in the Securities, alter the manner or rate of accrual of interest or Contingent Interest, if any, on any Security or extend the
time for payment of interest or Contingent Interest, if any, on any Security; 

        (e)   change
the obligation of the Company to maintain a paying agency for the Securities in The City of New York or the currency in which the Securities are payable; 

        (f)    reduce
the percentage in principal amount of affected Securities the consent of whose Holders is required for amendment of this Indenture or for waiver of compliance
with provisions hereunder or for waiver of certain defaults hereunder, except to increase the percentage required for consent or waiver or to provide that additional provisions hereunder may not be
modified or waived without the consent of the Holder of each Security affected thereby; or 

        (g)   impair
a Holder's right to institute suit for the enforcement of any payment due on the Securities. 

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

        Nothing
contained in this Section 11.2 shall impair the ability of the Company and the Trustee to amend this Indenture or the Securities without the consent of any Securityholder
to provide for the 

53

 

assumption
of the Company's obligations hereunder or under the Securities in the case of a merger, consolidation, conveyance, transfer or lease pursuant to Article VII. 

        Section 11.3.    Compliance with Trust Indenture Act.    

        Every
supplemental indenture executed pursuant to this Article shall comply with the TIA. 

        Section 11.4.    Revocation and Effect of Consents, Waivers and Actions.    

        Until
an amendment, waiver or other action by Holders becomes effective, a consent thereto by a Holder of a Security hereunder is a continuing consent by the Holder and every subsequent
Holder of that Security or portion of the Security that evidences the same obligation as the consenting Holder's Security, even if notation of the consent, waiver or action is not made on the
Security. However, any such Holder or subsequent Holder may revoke the consent, waiver or action as to such Holder's Security or portion of the Security if the Trustee receives the notice of
revocation before the date the amendment, waiver or action becomes effective. After an amendment, waiver or action becomes effective, it shall bind every Securityholder. 

        Section 11.5.    Notation on or Exchange of Securities.    

        Securities
authenticated and delivered after the execution of any supplemental indenture pursuant to this Article XI may, and shall if required by the Trustee or the Company, bear
a notation in form approved by the Trustee and the Company as to any matter provided for in such supplemental indenture. If the Company shall so determine, new Securities so modified as to conform, in
the opinion of the Trustee and the Board of Directors, to any such supplemental indenture may be prepared and executed by the Company and authenticated and delivered by the Trustee in exchange for
outstanding Securities. 

        Section 11.6.    Trustee to Sign Supplemental Indentures.    

        The
Trustee shall sign any supplemental indenture authorized pursuant to this Article XI if the amendment contained therein does not affect the rights, duties, liabilities or
immunities of the Trustee. If it does, the Trustee may, but need not, sign such supplemental indenture. In signing such supplemental indenture the Trustee shall receive, and (subject to the provisions
of Section 9.1) shall be fully protected in relying upon, an Officers' Certificate and an Opinion of Counsel to the effect that such amendment is authorized or permitted by this Indenture. 

        Section 11.7.    Effect of Supplemental Indentures.    

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

 
 

ARTICLE XII    
    
    CONVERSION    
    

        Section 12.1.    Conversion Rights.    

        (a)   Subject
to and upon compliance with the provisions of this Article XII, a Holder of a Security shall have the right, at such Holder's option, to convert all or
any portion (if the portion to be converted is $1,000 or an integral multiple of $1,000) of such Security into shares of Common Stock at the Conversion Price in effect on the date of conversion but
only under the following circumstances and at the respective times and to the extent specified in this Section 12.1 

54

 

(provided
that any such conversion right shall expire at the close of business on the Stated Maturity): 

          (i)  a
Holder may convert Securities during any calendar quarter, and only during such calendar quarter (beginning with the calendar quarter ending September 30,
2003), if, as of the last day of the preceding calendar quarter, the Last Reported Sale Price of the Common Stock on at least 20 Trading Days (whether or not consecutive) in the period of 30
consecutive Trading Days ending on the last Trading Day of such immediately preceding calendar quarter exceeds 120% of the Conversion Price on the last Trading Day of such immediately preceding
calendar quarter; 

         (ii)  a
Holder may convert Securities that have been called for redemption (and only those Securities that have been called for redemption) by the Company pursuant to a
notice of redemption given as provided in Article III hereof at any time prior to the close of business on the Business Day immediately preceding the Redemption Date for such Securities
(provided that, anything herein to the contrary notwithstanding, in the case of any Security that shall have been called for redemption in part, only the portion of such Security that shall have been
called for redemption may be converted); or 

        (iii)  as
provided in Section (b) of this Section 12.1. 

        The
Company shall determine after the end of each applicable calendar quarter whether the Securities shall be convertible as a result of the occurrence of an event specified in
clause (i) above and, if the Securities shall be so convertible, the Company shall, not later than the third Business Day of the subsequent calendar quarter (beginning with the calendar quarter
ending September 30, 2003) notify the Conversion Agent and the Trustee thereof as to whether or not the Securities shall be convertible. The Company shall have no responsibility to, and shall
have no liability for any failure to notify, any Holder of the occurrence of any event that triggers the right of such Holder to convert any Securities. The Trustee shall advise Holders who so request
whether or not the Securities are convertible as a result of the circumstances described in clause (i) above, so long as the Trustee has received such notice from the Company. 

        (b)   In
addition, in the event that: 

          (i)  (A)    the
Company makes a distribution to all holders of its Common Stock of rights entitling them (for a period expiring within 60 days after the
Record Date for such distribution) to subscribe for or purchase Common Stock at a price per share at less than the Last Reported Sale Price of the Common Stock on the Trading Day immediately preceding
the date of declaration of such distribution; or 

        (B)  the
Company makes a distribution to all holders of its Common Stock (excluding any distribution in connection with the liquidation, dissolution or winding up of the
Company, whether voluntary or involuntary) of the Company's assets, debt securities or rights to purchase its securities (other than rights referred to clause (A) above), if such distribution
has a Fair Market Value exceeding 15% of the product of (i) the Last Reported Sale Price of the Common Stock on the Trading Day immediately preceding the date of declaration of such
distribution multiplied by (ii) the number of shares of Common Stock outstanding on such Trading Day; 

then,
in each case, the Company shall give notice to Holders at least ten Business Days prior to the Ex-Dividend Time for such distribution and, from and after the date of such notice,
Holders may convert their Securities at any time until the close of business on the earlier of the Business Day immediately preceding the Ex-Dividend Time and the date on which the Company
publicly announces that such distribution will not take place; 

55

 

         (ii)  the
Company consolidates with or merges into another Person, is a party to a binding share exchange or transfers all or substantially all of the consolidated assets of
the Company and its
Subsidiaries, taken as a whole, in each case pursuant to which shares of Common Stock would be converted into Cash, securities or other property, then the Holders may convert Securities at any time
from and after the date which is 15 days prior to the anticipated effective date of such transaction (as such anticipated date is set forth in a written notice from the Company mailed to
Holders) until the close of business on the tenth Business Day after the actual effective date of such transaction (or, if earlier, the close of business on the Business Day immediately preceding the
date on which the Company announces (which may be by press release or other public announcement) that the transaction will not take place), and, if the transaction occurs, then, from and after the
effective time of the transaction, the right to convert Securities into shares of Common Stock will be changed into a right to convert Securities into the kind and amount of Cash, securities or other
property which the Holder would have received if the Holder had converted its Securities immediately prior to the effective time of such transaction; provided,
however, that, anything herein to the contrary notwithstanding, (A) if the Company engages in any transaction described in this clause (ii), the Conversion Price
will not be adjusted, and (B) the Securities shall not be convertible and no transaction requiring an adjustment to the Conversion Price will be deemed to have occurred if the Company is a
party to any transaction described in this clause (ii) effected with one of its Affiliates for purposes of changing the jurisdiction of its organization or effecting a corporate reorganization. 

        Section 12.2.    Conversion Procedure; Conversion Price; Fractional Shares.    

        (a)   Each
Security shall be convertible at the office of the Conversion Agent into fully paid and non-assessable shares of Common Stock. 

        The
Security will be converted into shares of Common Stock at the Conversion Price as in effect at the close of business on the date of conversion. The number of shares of Common Stock
issuable upon conversion of a Security (or portion thereof) shall be equal to the number of shares obtained by dividing the principal amount of such Security (or portion thereof) being converted by
the Conversion Price as in effect at the close of business on the date of conversion and rounding the quotient as provided in Section 12.3(j). 

        No
payment or adjustment shall be made in respect of dividends on the Common Stock or accrued and unpaid interest, Contingent Interest, if any, or Liquidated Damages, if any, on a
converted Security, except as described in Section 12.9 hereof. On conversion of a Security, that portion of accrued and unpaid interest and Contingent Interest, if any, on the converted
Security attributable to the period from the most recent Interest Payment Date (or, if no Interest Payment Date has occurred, from the date of this Indenture) through the date of conversion, and
Liquidated Damages, if any, and Tax Original Issue Discount accrued through the date of conversion with respect to the converted Security shall not be cancelled, extinguished or forfeited, but rather
shall be deemed to be paid in full to the Holder thereof through delivery of the Common Stock (together with the Cash payment, if any, in lieu of fractional shares), in exchange for the Security being
converted pursuant to the provisions hereof, and the fair market value of such shares of Common Stock (together with any such Cash payment in lieu of fractional shares), shall be treated as issued, to
the extent thereof, first in exchange for accrued and unpaid interest, Contingent Interest, if any, and Liquidated Damages, if any, and Tax Original Issue Discount accrued through the date of
conversion and the balance, if any, of such fair market value of such Common Stock (and any such Cash payment) shall be treated as issued in exchange for the principal amount of the Security being
converted pursuant to the provisions hereof. 

56

 

        The
Company agrees, and each Holder and any beneficial owner of a Security by its purchase thereof shall be deemed to agree, to treat, for United States federal income tax purposes, the
fair market value of the Common Stock received upon the conversion of a Security (together with any Cash payment in lieu of fractional shares) as a contingent payment on the Security for purposes of
Treasury Regulation Section 1.1275-4(b). 

        The
Company shall not issue any fraction of a share of Common Stock in connection with any conversion of Securities, but instead shall make a Cash payment equal to such fraction
multiplied by the Last Reported Sale Price of the Common Stock on the last Trading Day immediately preceding the date of conversion. 

        Anything
in this Indenture or the Securities to the contrary notwithstanding, (i) in the case of a Security called for redemption, the conversion right in respect of that Security
will expire at the close of business on the Business Day immediately preceding the applicable Redemption Date and (ii) in the case of a Security in respect of which a Holder has delivered a
Purchase Notice or Change in Control Purchase Notice exercising such Holder's option to require the Company to repurchase such Security, such Security may be converted (subject to satisfaction of the
conditions specified in Section 12.1) only if such notice of exercise is duly withdrawn in accordance with Sections 4.3 or 5.3 hereof prior to the date and time specified in such Section. 

        (b)   Before
any Holder of Securities shall be entitled to convert the same into Common Stock, such Holder shall, in the case of Securities issued in global form, comply with
the Applicable Procedures, and in the case of Certificated Securities, surrender such Securities, duly endorsed to the Company or in blank, at the office of the Conversion Agent, and shall deliver
written notice to the Company at said
office or place in the form of the Conversion Notice attached to the form of Security appearing as Exhibit A hereto (the "Conversion Notice"),
which may be obtained from the Conversion Agent, that such Holder irrevocably elects to convert the same, which Conversion Notice must be duly executed by the Holder and provide the other information
called for by the form of such Conversion Notice. 

        Before
any such conversion, a Holder also shall pay in Cash all amounts, if any, required to be paid by such Holder pursuant to Section 12.8 or 12.9 hereof. 

        If
more than one Security shall be surrendered for conversion at one time by the same Holder, the number of full shares of Common Stock that shall be deliverable upon conversion shall be
computed on the basis of the aggregate principal amount of the Securities (or specified portions thereof to the extent permitted thereby) so surrendered. Subject to the next succeeding sentence, the
Company will, as soon as practicable after a Holder shall have delivered Securities for conversion (together with all other documents and any payments required by this Indenture) and complied with the
applicable provisions of this Indenture relating thereto, issue and deliver at the office of the Conversion Agent to such Holder, or (subject to Section 12.10 hereof) to such other Person
indicated in the Conversion Notice, certificates (other than in the case of Holders of Securities in book-entry form with the Depositary, which shares shall be delivered in accordance with
the Applicable Procedures of the Depositary) for the number of full shares of Common Stock to which such Holder shall be entitled as aforesaid, together with Cash in lieu of any fraction of a share.
The Company shall not be required to deliver shares of Common Stock while the stock transfer books or the security register for such stock are duly closed for any purpose, but shares of Common Stock
shall be issued and delivered as soon as practicable after the opening of such books or security register. 

        If
the Common Stock to be issued upon conversion of a Restricted Security is to be issued in the name of a Person other than the Holder of such Restricted Security, such Holder must
deliver to the Conversion Agent a properly completed Common Stock Transfer Certificate, dated the date of surrender of such Restricted Security and signed by such Holder, as to compliance with the 

57

  

restrictions
on transfer applicable to such Restricted Security and, if such Common Stock is not being issued pursuant to the Shelf Registration Statement while such Shelf Registration Statement is
effective, such other legal opinions, certificates and other information, in form and substance satisfactory to the Company and the Conversion Agent, as the Company or the Conversion Agent may
reasonably require to confirm that such issuance is being made in a transaction exempt from registration under the Securities Act. The Company and the Conversion Agent shall not be required to issue
Common Stock upon conversion of any such Restricted Security to a Person other than the Holder if such Restricted Security is not so accompanied by a properly completed Common Stock Transfer
Certificate and such legal opinions, certificates and other information as the Company or the Conversion Agent may require as aforesaid. 

        (c)   A
Security shall be deemed to have been converted as of the close of business on the date of the surrender of such Security for conversion to the Conversion Agent as
provided above, together with a completed and executed Conversion Notice and (if required) Transfer Certificate as provided above, together with any Cash payment and any other required documents
required by this Indenture, and the person or persons entitled to receive the Common Stock issuable upon such conversion shall be treated for all purposes as the record holder or holders of such
Common Stock as of the close of business on such date. Upon conversion, all obligations under the Securities so converted will be deemed satisfied and paid in full rather than cancelled, extinguished
or forfeited, including with respect to any accrued and unpaid interest, accrued and unpaid Contingent Interest, if any, and accrued and unpaid Liquidated Damages, if any. 

        (d)   In
case any Certificated Security shall be surrendered for partial conversion, the Company shall execute and the Trustee shall authenticate and deliver to or upon the
written order of the Holder of the Security so surrendered, without charge to such Holder (subject to the provisions of Section 12.8 hereof), a new Security or Securities in authorized
denominations in an aggregate principal amount equal to the unconverted portion of the surrendered Certificated Securities. 

        Section 12.3.    Adjustment of Conversion Price for Common Stock.    

        The
Conversion Price shall be adjusted from time to time as follows: 

        (a)   In
case the Company shall pay to all holders of its Common Stock a dividend or make other distribution on its Common Stock payable exclusively in shares of Common Stock,
the Conversion Price in effect immediately prior to the effective date for the adjustment pursuant to this Section 12.3(a), as
described below, shall be adjusted so that the Holder of any Securities thereafter surrendered for conversion shall be entitled to receive the number of shares of Common Stock which such Holder would
have owned or have been entitled to receive immediately after the happening of the applicable event described above had such Securities been converted immediately prior to such effective date. If any
dividend or distribution of the type described in this clause above is not so paid or made, the Conversion Price shall again be adjusted to the Conversion Price that would then be in effect if such
dividend or distribution had not been declared. An adjustment made pursuant to this Section 12.3(a) shall become effective immediately after the Record Date for the applicable dividend or
distribution, as the case may be. 

        (b)   In
case the Company shall distribute to all holders of its Common Stock rights entitling them (for a period expiring within 60 days after the Record Date for such
distribution) to subscribe for or purchase Common Stock at a price per share less than the Last Reported Sale Price on the Trading Day immediately preceding the date of declaration of such
distribution, the Conversion Price shall be adjusted so that the same shall be equal to the price determined by multiplying the Conversion Price in effect immediately prior to such date of declaration
by a fraction (i) the numerator of which shall be the number of shares of Common Stock outstanding as of the close of business on such date of declaration plus the number of shares of Common
Stock that the aggregate offering price of the total number of shares so offered for subscription or 

58

 

purchase
would purchase at such Last Reported Sale Price, and (ii) the denominator of which shall be the number of shares of Common Stock outstanding as of the close of business on such date of
declaration plus the number of shares of Common Stock so offered for subscription or purchase. Such adjustment shall become effective immediately after the opening of business on the day following the
Record Date for such distribution. To the extent that shares of Common Stock are not delivered pursuant to such rights, then, upon expiration or termination of such rights, the Conversion Price shall
be readjusted to the Conversion Price which would then be in effect had the adjustment made upon the issuance of such rights been made on the basis of delivery of only the number of shares of Common
Stock actually delivered. If such rights are not so issued, the Conversion Price shall again be adjusted to be the Conversion Price which would then be in effect if the Company had not declared such
distribution of such rights and no such Record Date had been fixed. In determining whether any rights entitle the holders to subscribe for or purchase shares of Common Stock at less than such Last
Reported Sale Price, and in determining the aggregate offering price of such shares of Common Stock, there shall be taken into account any consideration received by the Company for such rights and any
amounts payable on exercise thereof, the Fair Market Value of such consideration, if other than Cash, to be determined by the Board of Directors. 

        (c)   In
case the Company shall (i) subdivide its outstanding Common Stock into a greater number of shares or (ii) combine its outstanding Common Stock into a
smaller number of shares, the Conversion Price in effect immediately prior to the effective date for such subdivision or combination, as the case may be, shall be adjusted so that the Holder of any
Securities thereafter surrendered for conversion shall be entitled to receive the number of shares of Common Stock which such Holder would have owned or been entitled to receive immediately after the
happening of the applicable event described above had such Securities been converted immediately prior to such effective date. An adjustment made pursuant to this subsection (c) shall become
effective immediately after the effective date of such subdivision or combination. 

        (d)   In
case the Company shall, by dividend or otherwise, make a distribution to all holders of its Common Stock (excluding any distribution in connection with the
liquidation, dissolution or winding up of the Company, whether voluntary or involuntary) of the Company's assets, debt securities or rights (excluding those rights referred to in
Section 12.3(b) hereof) to subscribe for or purchase any of the Company's securities (any of foregoing being hereafter called the "Distributed Assets or
Securities"), and such distribution (the "Reference Distribution"), together with all other distributions, if any, of
Distributed Assets or Securities made by the Company to all holders of Common Stock during the 12-month period ending on the date of the Reference Distribution and in respect of which no
previous adjustment to the Conversion Price pursuant to this Section 12.3(d) has been made, have an aggregate Fair Market Value (the "Aggregate
Value") exceeding an amount (the "Base Amount") equal to 10% of the product of (1) the Last Reported Sale Price of our
Common Stock on the Trading Day (the "Determination Date") immediately preceding the date of declaration of the Reference Distribution multiplied by
(2) the number of shares of Common Stock outstanding on the Determination Date, then the Conversion Price shall be adjusted so that the same shall be equal to the price determined by
multiplying the Conversion Price in effect immediately prior to such Determination Date by a fraction (i) of which the numerator shall be the Last Reported Sale Price per share of Common Stock
on such Determination Date less an amount equal to the quotient of (x) the excess of such Aggregate Value over such Base Amount divided by (y) the number of shares of Common Stock
outstanding on the Determination Date, and (ii) the denominator of which shall be the Last Reported Sale Price on such Determination Date. Such adjustment shall become effective immediately
after the Record Date for the Reference Distribution. In the event that the Reference Distribution is not so paid or made, the Conversion Price shall again be adjusted to the Conversion Price which
would then be in effect if such Reference Distribution had not been declared. 

59

 

        (e)   Notwithstanding
the foregoing provisions of Section 12.3(a), (b), (c) and (d), no adjustment of the Conversion Price shall be made in respect of any
payment, distribution or other transaction referred to therein if the Company makes proper provision so that each Holder who converts its Securities (or any portion thereof) after the Record Date,
date of declaration or effective time, as the case may be, of such payment, distribution or other transaction shall be entitled to receive upon such conversion, in addition to the shares of Common
Stock issuable upon such conversion, the same amount and kind of assets or other property that such Holder would have been entitled to receive if such Holder had, immediately prior to such Record
Date, date of declaration or effective time, as the case may be, converted such Securities into Common Stock. 

        (f)    Anything
in this Indenture or the Securities to the contrary notwithstanding, no adjustment to the Conversion Price shall be made: 

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

         (ii)  upon
or with respect to the issuance of any shares of Common Stock or options or rights to purchase those shares pursuant to any present or future employee, officer,
director or consultant stock option, stock purchase or other benefit plan or program of or assumed by the Company or any of its Subsidiaries; 

        (iii)  upon
or with respect to the issuance of any shares of Common Stock pursuant to any option, warrant, right or exercisable, exchangeable or convertible security
outstanding as of the date of this Indenture; 

        (iv)  upon
or with respect to any purchase of shares of Common Stock, including, without limitation, purchases with the proceeds of the sale of the Securities, whether under
any stock repurchase program or otherwise; 

         (v)  upon
or with respect to the issuance to holders of Common Stock of rights ("stockholder rights") under any existing or
future stockholder rights plan or similar arrangement (including, without limitation, the Rights Agreement of the Company dated March 31, 2000, as the same may be amended or restated from time
to time); 

        (vi)  upon
the exercise of stockholder rights by holders thereof and upon the issuance of securities as a consequence thereof; 

       (vii)  in
the event that the stockholder rights detach from the shares of Common Stock and become separately tradable; 

      (viii)  for
a change in the par value or no par value of the Common Stock; or 

        (ix)  for
accrued and unpaid interest, Contingent Interest, if any, or Liquidated Damages, if any, on the Securities. 

        (g)   For
purposes of this Article XII: 

        "Fair Market Value" shall mean the amount which a willing buyer would pay a willing seller in an arm's length transaction (as determined
in good faith by the Board of Directors, whose good faith determination shall be conclusive and described in a Board Resolution or Officers' Certificate). 

        "Record Date" shall mean, with respect to any dividend, distribution or other transaction or event in which the holders of shares of
Common Stock have the right to receive any cash, securities or other property or in which the shares of Common Stock (or other applicable security) 

60

 

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). 

        (h)   The
Company shall be entitled to make such reductions in the Conversion Price, in addition to those required by Sections 12.3(a), (b), (c) and (d), as the Board
of Directors considers advisable to avoid or diminish any income tax to holders of Common Stock or rights to purchase Common Stock resulting from any dividends or distributions of capital stock (or
rights to acquire capital stock) or from any event treated as such for United States federal income tax purposes. 

        (i)    To
the extent permitted by applicable law, the Company may, from time to time, decrease the Conversion Price by any amount for any period of at least 20 days if
the Board of Director has determined that such decrease in the Conversion Price is in the best interest of the Company. Such a determination by the Board of Directors of the Company shall be
conclusive. Whenever the Conversion Price is reduced pursuant to the second preceding sentence, the Company shall mail to the Trustee and each Holder at the address of such Holder as it appears in the
register of the Securities maintained by the Registrar, at least 15 days prior to the date the reduced Conversion Price takes effect, a notice of the reduction stating the reduced Conversion
Price and the period during which it will be in effect. 

        (j)    All
calculations under Section 12.2 and this Section 12.3 shall be made by the Company and shall be made to the nearest cent or one-hundredth
of a share, with one-half cent and 0.005 of a share, respectively, being rounded upward. Notwithstanding any other provision of this Article XII, the Company shall not be required
to make any adjustment of the Conversion Price unless such adjustment would require an increase or decrease of at least 1% of such price. Any lesser adjustment shall be carried forward and shall be
made at the time of and together with the next subsequent adjustment which, together with any adjustment or adjustments so carried forward, shall amount to an increase or decrease of at least 1% in
such price. Any adjustments under this Section 12.3 shall be made successively whenever an event requiring such an adjustment occurs. 

        (k)   Anything
in this Indenture or the Securities to the contrary notwithstanding, no adjustment shall be made pursuant to this Section 12.3 if (i) the effect
thereof would be to reduce the Conversion Price below the par value (if any) of the Common Stock or (ii) the Holders of the Securities may participate in the transaction that would otherwise
give rise to an adjustment pursuant to this Section 12.3. 

        (l)    For
purposes of this Section 12.3, the number of shares of Common Stock outstanding at any time shall not include shares held in the treasury of the Company. 

        Section 12.4.    Consolidation or Merger of the Company.    

        If
any of the following events occur, namely (a) any reclassification or change of outstanding shares of Common Stock (other than a change in par value, or from par value to no
par value, or from no par value to par value, or as a result of a subdivision or combination); (b) any consolidation, merger, combination or binding statutory share exchange of the Company with
another Person as a result of which holders of Common Stock shall be entitled to receive stock, securities or other property or assets (including cash) with respect to or in exchange for such Common
Stock; or (c) any sale or conveyance of the properties and assets of the Company substantially as an entirety to any other Person as a result of which holders of Common Stock shall be entitled
to receive stock, securities or other property or assets (including cash) with respect to or in exchange for such Common Stock, then the Company or the successor or purchasing Person, as the case may
be, shall execute with the Trustee a supplemental indenture, providing that each Security shall be convertible into the kind and amount of shares of stock and other securities or property or assets
(including cash) receivable upon such reclassification, change, consolidation, merger, combination, binding statutory share exchange, sale or 

61

 

conveyance
by a holder of a number of shares of Common Stock issuable upon conversion of such Security immediately prior to such reclassification, change, consolidation, merger, combination, binding
statutory share exchange, sale or conveyance. Such supplemental indenture shall provide for adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided for in
this Article XII. 

        The
Company shall cause notice of the execution of such supplemental indenture to be mailed to each Holder, at the address of such Holder as it appears on the register of the Securities
maintained by the Registrar, within 20 days after execution thereof. Failure to deliver such notice shall not affect the legality or validity of such supplemental indenture. 

        The
above provisions of this Section 12.4 shall similarly apply to successive reclassifications, changes, consolidations, mergers, combinations, statutory share exchanges, sales
and conveyances. 

        If
this Section 12.4 applies to any event or occurrence, Section 12.3 shall not apply. 

        Section 12.5.    Notice of Adjustment.    

        Whenever
an adjustment in the Conversion Price with respect to the Securities is required (other than an adjustment pursuant to Section 12.3(i)): 

        (a)   the
Company shall promptly mail or otherwise deliver to the Trustee and the Conversion Agent a certificate of an Officer of the Company, stating the adjusted Conversion
Price determined as provided herein and setting forth in reasonable detail such facts as shall be necessary to show the reason for and the manner of computing such adjustment; and 

        (b)   a
notice stating that the Conversion Price has been adjusted and setting forth the adjusted Conversion Price shall promptly be mailed by the Company to each Holder in
the manner provided in Section 13.2 hereof, and any such notice so mailed shall be conclusively presumed to have been duly given, whether or not the Holder receives such notice. 

        Section 12.6.    Notice in Certain Events.    

        In
case: 

        (a)   the
Company shall declare a dividend (or any other distribution) on its Common Stock that would require an adjustment in the Conversion Price pursuant to
Section 12.3; 

        (b)   the
Company shall authorize the granting to all holders of its Common Stock of rights to purchase any share of any class of capital stock or any other rights to purchase
securities; 

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

        (d)   of
the voluntary or involuntary dissolution, liquidation or winding-up of the Company; 

the
Company shall mail to the Trustee and cause to be mailed to each Holder at its address appearing on the Security register, as promptly as possible but in any event at least 15 days prior to
the applicable Record Date or effective date hereinafter specified, a notice stating (x) the date on which a record is to
be taken for the purpose of such dividend, distribution or rights, or, if a record is not to be taken, the date as of which the holders of Common Stock of record to be entitled to such dividend,
distribution, or rights are to be determined or (y) the date on which such reclassification, change, consolidation, merger, sale, transfer, dissolution, liquidation or winding-up is
expected to become effective or occur, and the date, if any, as of which it is expected that 

62

  

holders
of Common Stock of record shall be entitled to exchange their Common Stock for securities or other property deliverable upon such reclassification, change, consolidation, merger, sale,
transfer, dissolution, liquidation or winding-up. Failure to give such notice, or any defect therein, shall not affect the legality or validity of such dividend, distribution, grant,
reclassification, change, consolidation, merger, sale, transfer, dissolution, liquidation or winding-up. 

        Section 12.7.    Company To Reserve Stock; Registration; Listing.    The Company shall at all times reserve and
keep available, free from preemptive rights, out of its authorized but unissued shares of Common Stock for the purpose of effecting the conversion of the Securities, such number of its duly authorized
shares of Common Stock as shall from time to time be sufficient to effect the conversion of all Securities then outstanding into such Common Stock at any time (assuming that, at the time of the
computation of such number of shares, all such Securities would be held by a single Holder). The Company covenants that all shares of Common Stock which may be issued upon conversion of Securities
will upon issue be fully paid and non-assessable and free from all liens and charges and, except as provided in Section 12.8, taxes with respect to the issue thereof. 

        Section 12.8.    Taxes on Conversion.    

        The
issue of Common Stock on conversion of Securities shall be made without charge to the converting Holder for any documentary, stamp or similar issue or transfer taxes in respect of
the issue thereof, and the Company shall pay any and all documentary, stamp or similar issue or transfer taxes that may be payable in respect of the issue or delivery of shares of Common Stock on
conversion of Securities pursuant hereto; provided, however, that the Company shall not be required to pay any such tax which may be payable in respect of any transfer involved in the issue or
delivery of shares of Common Stock or the portion, if any, of the Securities which are not so converted in a name other than that in which the Securities so converted were registered, and no such
issue or delivery of any shares of Common Stock issuable upon conversion of any Security shall be made unless and until the Holder of such Securities has paid to the Company the amount of such tax or
has established to the satisfaction of the Company that such tax has been paid. 

        Section 12.9.    Conversion After Record Date.    

        Except
as provided below, a converting Holder of Securities shall not be entitled to receive any accrued and unpaid interest, Contingent Interest, if any, or Liquidated Damages, if any,
on any such Securities being converted. Holders of Securities at the close of business on a Regular Record Date will be
entitled to receive payment of the interest, Contingent Interest, if any, and Liquidated Damages, if any, payable on such Securities on the next succeeding Interest Payment Date (notwithstanding the
conversion of such Securities at any time after the close of business on such Regular Record Date), unless such Securities have been called for redemption on a Redemption Date or are purchased by the
Company at the option of the Holder on a Purchase Date or Change in Control Purchase Date during the period from the close of business on such Regular Record Date to the opening of business on such
Interest Payment Date. Securities surrendered for conversion or converted during the period from the close of business on any Regular Record Date to the opening of business on the next succeeding
Interest Payment Date (except Securities which have been called for redemption on a Redemption Date after the close of business on such Regular Record Date and before the opening of business on the
next succeeding Interest Payment Date) shall be accompanied by payment from the converting Holders, for the account of the Company, in Cash in New York Clearing House funds or other funds acceptable
to the Company, in an amount equal to the interest, Contingent Interest, if any, and Liquidated Damages, if any, payable on such Interest Payment Date with respect to the principal amount of the
Securities being converted. 

        Except
as provided in this Section 12.9, no adjustments in respect of payments of interest, if any, Contingent Interest, if any, or Liquidated Damages, if any, on Securities
surrendered for conversion or 

63

 

any
dividends or distributions or interest on the Common Stock issued upon conversion shall be made upon the conversion of any Securities. 

        In
the event that any Security is converted after the close of business on any Special Record Date for the payment of Defaulted Interest on such Security and prior to the opening of
business on the corresponding payment date for such Defaulted Interest, such Security (unless such Security has been called for redemption on a Redemption Date after the close of business on such
Special Record Date and before the opening of business on such payment date) shall be accompanied by payment from the converting Holder, for the account of the Company, in Cash in New York Clearing
House funds or other funds acceptable to the Company, in an amount equal to the Defaulted Interest payable on such payment date with respect to the principal amount of the Securities being converted. 

        Section 12.10.    Restriction on Common Stock Issuable Upon Conversion.    

        (a)   Except
in the case of shares of Common Stock that have been registered under the Securities Act pursuant to the shelf registration statement filed pursuant to the
Registration Rights Agreement (a "Shelf Registration Statement"), that are issued pursuant to such Shelf Registration Statement while such Shelf
Registration Statement is effective under the Securities Act, and that the Company shall determine, in its sole and absolute discretion, are not "restricted securities" within the meaning of
Rule 144, all shares of Common Stock issued upon conversion of Restricted Securities shall be physically delivered in certificated form to the Holders converting such Restricted Securities and
the
certificates representing such shares of Common Stock shall bear the Restricted Common Stock Legend unless removed in accordance with Section 12.10(c). 

        (b)   If
(i) shares of Common Stock to be issued upon conversion of Transfer Restricted Securities are to be registered in a name other than that of the Holder of such
Transfer Restricted Securities or (ii) shares of Common Stock represented by a certificate bearing the Restricted Common Stock Legend are to be transferred by the holder, then the Holder of the
Securities being converted or the holder of the shares of Common Stock being transferred, as the case may be, must deliver to the Conversion Agent or the transfer agent for the Common Stock, as the
case may be, and to the Company a duly completed and executed Common Stock Transfer Certificate as to compliance with the restrictions on transfer applicable thereto, and, except in the case of an
issuance or transfer being made pursuant to an effective Shelf Registration Statement, such legal opinions, certificates and other information as the Company, the Conversion Agent or the transfer
agent may reasonably require to confirm that issuance or transfer is being made pursuant to the exemption from registration provided by Rule 144 under the Securities Act (if available) or to
the Company or a Subsidiary of the Company and neither the Company, the Conversion Agent, the transfer agent nor any registrar, as the case may be, shall be required to issue any shares of Common
Stock upon conversion of Securities to a person other than the Holder of such Security, or transfer any such shares of Common Stock, as the case may be, unless they shall have received a completed and
executed Common Stock Transfer Certificate and such other documents referred to above. 

        (c)   If
certificates representing shares of Common Stock are issued upon the registration of transfer of any other certificate representing shares of Common Stock bearing the
Restricted Common Stock Legend, or if a request is made to remove such Restricted Common Stock Legend from certificates representing shares of Common Stock, the certificates so issued shall bear the
Restricted Common Stock Legend, or the Restricted Common Stock Legend shall not be removed, as the case may be, unless, (i) in the case of a transfer of shares of Common Stock that have been
registered pursuant to the Shelf Registration Statement and that are to be transferred pursuant to such Shelf Registration Statement while it is effective under the Securities Act, the transferor
shall have delivered to the Company and the transfer agent for the Common Stock a duly signed and completed and executed Common Stock Transfer Certificate indicating that the shares are to be so 

64

 

transferred
pursuant to the Shelf Registration Statement, (ii) in the case of any other transfer, there shall be delivered to the Company and the transfer agent for the Common Stock a completed
and executed Common Stock Transfer Certificate and such legal opinions, certificates and other information as the Company or the transfer agent for the Common Stock may reasonably require to confirm
that such transfer is being made pursuant to the exemption from registration provided by Rule 144 under the Securities Act (if available) and that, upon such transfer, such shares of Common
Stock shall no longer be "restricted securities" within the meaning of Rule 144 under the Securities Act, or (iii) in the case of any such request for the removal of the legend, there
shall be delivered to the Company and the transfer agent for the Common Stock such legal opinions, certificates and other information as either of them may reasonably require to confirm that such
shares of Common Stock are no longer "restricted securities" within the meaning of Rule 144 under the Securities Act. Upon delivery of the documents required by this paragraph, the Company
shall cause the transfer agent for the Common Stock to countersign and deliver certificates representing shares of Common Stock that do not bear the Restricted Common Stock Legend. 

        (d)   Anything
herein to the contrary notwithstanding, the provisions of this Section 12.10 shall survive the discharge of this Indenture. 

        Section 12.11.    Company Determination Final.    

        Any
determination that the Company or the Board of Directors must make pursuant to this Article XII shall be conclusive, absent manifest error. 

        Section 12.12.    Responsibility of Trustee for Conversion Provisions.    

        The
Trustee has no duty to determine when an adjustment under this Article XII should be made, how it should be made or what it should be. The Trustee makes no representation as
to the validity or value of any securities or assets issued upon conversion of Securities. The Trustee shall not be responsible for any failure of the Company to comply with this Article XII.
Each Conversion Agent other than the Company or one of its Subsidiaries or Affiliates shall have the same protection under this Section 12.12 as the Trustee. 

 
 

ARTICLE XIII    
    
    MISCELLANEOUS    
    

        Section 13.1.    Trust Indenture Act Controls.    If any provision of this Indenture limits, qualifies, or
conflicts with the duties imposed by TIA Section 318(c), such section of the TIA shall control. If any provision of this Indenture expressly modifies or excludes any provision of the TIA that
may be so modified or excluded, the Indenture provision so modifying or excluding such provision of the TIA shall be deemed to apply. 

        Section 13.2.    Notices.    Any request, demand, authorization, notice, waiver, consent or communication
provided for under this Indenture or the Securities shall be in writing and delivered in person or using courier service providing overnight delivery or mailed by first-class mail, postage prepaid, in
each case
addressed as follows, or transmitted by facsimile transmission to the following facsimile numbers (so long as receipt of such facsimile transmission is confirmed by telephone): 

if
to the Company: 

EDWARDS
LIFESCIENCES CORPORATION

One Edwards Way

Irvine, California 92614

Attn: General Counsel

Facsimile No.: (949) 250-6885 

65

 

if
to the Trustee: 

JPMORGAN
CHASE BANK

4 New York Plaza, 15th Floor

New York, New York 10004

Attn: Institutional Trust Services

Facsimile No.: (212) 623-6215 

        The
Company or the Trustee by notice given to the other in the manner provided above may designate additional or different addresses or facsimile numbers for subsequent notices or
communications. 

        Any
notice or communication given to a Securityholder shall be mailed to the Securityholder, by first-class mail, postage prepaid, at the Securityholder's address as it appears on the
registration books of the Registrar and shall be sufficiently given if so mailed within the time prescribed. 

        Failure
to mail a notice or communication to a Securityholder or any defect in it shall not affect its sufficiency with respect to other Securityholders. If a notice or communication is
mailed in the manner provided above, it is duly given, whether or not received by the addressee, and will be deemed to have been given on the date of such mailing. 

        If
the Company mails a notice or communication to the Securityholders, it shall mail a copy to the Trustee and each Registrar, Paying Agent, Conversion Agent or co-registrar. 

        Section 13.3.    Communication by Holders with Other Holders.    

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

        Section 13.4.    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, if the Trustee so requests: 

        (a)   an
Officers' Certificate stating that, in the opinion of the signers, all conditions precedent, if any, provided for in this Indenture relating to the proposed action
have been complied with; and 

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

        Section 13.5.    Statements Required in Certificate or Opinion.    

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

        (a)   a
statement that each person making such Officers' Certificate or Opinion of Counsel has read such covenant or condition; 

        (b)   a
brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such Officers' Certificate or Opinion
of Counsel are based; 

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

66

 

        (d)   a
statement that, in the opinion of such person, such covenant or condition has been complied with. 

        Section 13.6.    Calculations in Respect of the Securities.    

        The
Company will be responsible for making all calculations called for under the Securities, the Indenture or the Registration Rights Agreement. These calculations include, but are not
limited to, determination of the Market Price and Last Reported Sale Price for the Common Stock, the Trading Price of the Securities, whether Contingent Interest shall be payable on the Securities,
the amount of accrued interest, Contingent Interest, if any, and Liquidated Damages, if any, on the Securities, in the event that the Company shall elect to pay the Purchase Price or Change in Control
Purchase Price, in whole or in part, in shares of Common Stock, the number of shares of Common Stock issuable to make such payment, the amount of Cash payable in respect of fractional shares of Common
Stock, and the Conversion Price of the Securities as in effect from time to time and whether the conditions to conversion set forth in Section 12.1(a)(i) or 12.1(b)(i) have been
satisfied. The Company will make these calculations in good faith and, absent manifest error, these calculations will be final and binding on the Holders. The Company will provide to each of the
Trustee, the Conversion Agent, Bid Solicitation Agent and the Paying Agent, upon written request, a schedule of its calculations and each of the Trustee, the Conversion Agent, Bid Solicitation Agent
and the Paying Agent is entitled to rely upon the accuracy of such calculations without independent verification. The Trustee will forward the Company's calculations to any Holder upon the request of
such Holder. 

        Section 13.7.    Separability Clause.    

        In
case any provision in this Indenture or in the Securities shall be invalid, illegal or unenforceable, then, to the extent permitted by law, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired thereby. 

        Section 13.8.    Rules by Trustee, Paying Agent, Conversion Agent and Registrar.    

        The
Trustee may make reasonable rules for action by or a meeting of Securityholders. The Registrar, the Conversion Agent and the Paying Agent may make reasonable rules for their
functions. 

        Section 13.9.    Legal Holidays.    

        If
any specified date (including a date for giving notice) is a Legal Holiday, the action shall be taken on the next succeeding day that is not a Legal Holiday. Without limitation to the
foregoing, if any Interest Payment Date, Stated Maturity, Redemption Date, Purchase Date, Change in Control Purchase Date or other date on which any payment is due on the Securities falls on a day
that is not a Business Day, the required payment will be made on the next succeeding Business Day and no interest, Contingent Interest, if any, or Liquidated Damages, if any, will accrue on that
payment for the period from and after that Interest Payment Date, Stated Maturity, Redemption Date, Purchase Date, Change in Control Purchase Date or other date, as the case may be, to the date of
that payment on such next succeeding Business Day. 

        Section 13.10.    Governing Law.    

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

        Section 13.11.    No Recourse Against Others.    

        No
recourse under or upon any obligation, covenant or agreement contained in this Indenture, or in any Security, or because of any indebtedness or obligation evidenced hereby or thereby,
shall be had against any incorporator, as such, or against any past, present or future stockholder, officer, director or employee, as such, of the Company or of any predecessor or successor, either
directly or through the Company or any predecessor or successor, under any rule of law, statute or constitutional provision or 

67

 

by
the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and released by the acceptance of the Securities by the Holders and
as part of the consideration for the issue of the Securities. 

        Section 13.12.    Successors.    

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

        Section 13.13.    Multiple Originals.    

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

        Section 13.14.    Benefits of Indenture.    

        Nothing
in this Indenture or in the Securities, express or implied, shall give to any person, other than the parties hereto and the Holders of the Securities, any benefit or any legal or
equitable right, remedy or claim under this Indenture or the Securities. 

[SIGNATURE PAGE FOLLOWS]

68

        IN
WITNESS WHEREOF, the undersigned, being duly authorized, have executed this Indenture on behalf of the respective parties hereto as of the date first above written. 

	 	 	EDWARDS LIFESCIENCES CORPORATION
	

 	
 	

 	

 
	 	 	By:	/s/  CORRINE H. LYLE      
 Name: Corinne H. Lyle

Title: Corporate Vice President, Chief

          Financial Officer and Treasurer
	

 	
 	

 	

 
	 	 	JPMORGAN CHASE BANK

As Trustee
	

 	
 	

 	

 
	 	 	By:	/s/  CAROL NG      
 Name: Carol Ng

Title: Trustee

SCHEDULE I  

 
 

Projected Payment Schedule(1)
  Per $1,000 Principal Amount at Maturity of Securities    
    

Comparable yield: 4.85%, compounded semiannually  

	Semiannual Period Ending
 
	 	Noncontingent

Payments
	 	Contingent

Payments
	 	Total

Payments

	November 15, 2003	 	$	20.02	 	 	—	 	$	20.02
	May 15, 2004	 	$	19.38	 	 	—	 	$	19.38
	November 15, 2004	 	$	19.38	 	 	—	 	$	19.38
	May 15, 2005	 	$	19.38	 	 	—	 	$	19.38
	November 15, 2005	 	$	19.38	 	 	—	 	$	19.38
	May 15, 2006	 	$	19.38	 	 	—	 	$	19.38
	November 15, 2006	 	$	19.38	 	 	—	 	$	19.38
	May 15, 2007	 	$	19.38	 	 	—	 	$	19.38
	November 15, 2007	 	$	19.38	 	 	—	 	$	19.38
	May 15, 2008	 	$	19.38	 	 	—	 	$	19.38
	November 15, 2008	 	$	19.38	 	 	—	 	$	19.38
	May 15, 2009	 	$	19.38	 	 	—	 	$	19.38
	November 15, 2009	 	$	19.38	 	 	—	 	$	19.38
	May 15, 2010	 	$	19.38	 	 	—	 	$	19.38
	November 15, 2010	 	$	19.38	 	 	—	 	$	19.38
	May 15, 2011	 	$	19.38	 	 	—	 	$	19.38
	November 15, 2011	 	$	19.38	 	 	—	 	$	19.38
	May 15, 2012	 	$	19.38	 	 	—	 	$	19.38
	November 15, 2012	 	$	19.38	 	 	—	 	$	19.38
	May 15, 2013	 	$	19.38	 	 	—	 	$	19.38
	November 15, 2013	 	$	19.38	 	 	—	 	$	19.38
	May 15, 2014	 	$	19.38	 	 	—	 	$	19.38
	November 15, 2014	 	$	19.38	 	 	—	 	$	19.38
	May 15, 2015	 	$	19.38	 	 	—	 	$	19.38
	November 15, 2015	 	$	19.38	 	 	—	 	$	19.38
	May 15, 2016	 	$	19.38	 	 	—	 	$	19.38
	November 15, 2016	 	$	19.38	 	 	—	 	$	19.38
	May 15, 2017	 	$	19.38	 	 	—	 	$	19.38
	November 15, 2017	 	$	19.38	 	 	—	 	$	19.38
	May 15, 2018	 	$	19.38	 	 	—	 	$	19.38
	November 15, 2018	 	$	19.38	 	 	—	 	$	19.38
	May 15, 2019	 	$	19.38	 	 	—	 	$	19.38
	November 15, 2019	 	$	19.38	 	 	—	 	$	19.38
	May 15, 2020	 	$	19.38	 	 	—	 	$	19.38
	November 15, 2020	 	$	19.38	 	$	3.05	 	$	22.43
	May 15, 2021	 	$	19.38	 	$	3.13	 	$	22.51
	November 15, 2021	 	$	19.38	 	$	3.20	 	$	22.58
	May 15, 2022	 	$	19.38	 	$	3.28	 	$	22.66
	November 15, 2022	 	$	19.38	 	$	3.37	 	$	22.75
	May 15, 2023	 	$	19.38	 	$	3.45	 	$	22.83
	November 15, 2023	 	$	19.38	 	$	3.54	 	$	22.92
	May 15, 2024	 	$	19.38	 	$	3.62	 	$	23.00
	November 15, 2024	 	$	19.38	 	$	3.71	 	$	23.09
	May 15, 2025	 	$	19.38	 	$	3.81	 	$	23.19
	November 15, 2025	 	$	19.38	 	$	3.90	 	$	23.28
	 	 	 	 	 	 	 	 	 	 

	May 15, 2026	 	$	19.38	 	$	4.00	 	$	23.38
	November 15, 2026	 	$	19.38	 	$	4.10	 	$	23.48
	May 15, 2027	 	$	19.38	 	$	4.20	 	$	23.58
	November 15, 2027	 	$	19.38	 	$	4.31	 	$	23.69
	May 15, 2028	 	$	19.38	 	$	4.42	 	$	23.80
	November 15, 2028	 	$	19.38	 	$	4.53	 	$	23.91
	May 15, 2029	 	$	19.38	 	$	4.64	 	$	24.02
	November 15, 2029	 	$	19.38	 	$	4.76	 	$	24.14
	May 15, 2030	 	$	19.38	 	$	4.87	 	$	24.25
	November 15, 2030	 	$	19.38	 	$	5.00	 	$	24.38
	May 15, 2031	 	$	19.38	 	$	5.12	 	$	24.50
	November 15, 2031	 	$	19.38	 	$	5.25	 	$	24.63
	May 15, 2032	 	$	19.38	 	$	5.38	 	$	24.76
	November 15, 2032	 	$	19.38	 	$	5.51	 	$	24.89
	May 15, 2033	 	$	19.38	 	$	1,506.15	 	$	1,525.53

	(1)
	The
schedule of projected payments is determined, in part, on the basis of an assumption of linear growth of the stock price and is not determined for any purpose other than for the
determination of interest accruals and adjustments thereof in respect of the Securities for United States federal income tax purposes. The schedule of projected payments does not constitute a
projection or representation regarding the amounts payable on the Securities. 

  

 
 

EXHIBIT A
  
    [FORM OF FACE OF SECURITY]    
    

        FOR PURPOSES OF SECTIONS 1272, 1273 AND 1275 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, THIS SECURITY IS BEING ISSUED WITH ORIGINAL ISSUE DISCOUNT AND THE
ISSUE DATE OF THIS SECURITY IS MAY 9, 2003. IN ADDITION, THIS SECURITY IS SUBJECT TO UNITED STATES FEDERAL INCOME TAX REGULATIONS GOVERNING CONTINGENT PAYMENT DEBT INSTRUMENTS. FOR PURPOSES OF
SECTIONS 1272, 1273 AND 1275 OF THE INTERNAL REVENUE CODE, THE ISSUE PRICE OF EACH SECURITY IS $1,000 PER $1,000 OF PRINCIPAL AMOUNT AND THE COMPARABLE YIELD IS 4.85%, COMPOUNDED SEMIANNUALLY (WHICH
WILL BE TREATED AS THE YIELD TO MATURITY FOR UNITED STATES FEDERAL INCOME TAX PURPOSES). 

        EDWARDS
LIFESCIENCES CORPORATION (THE "ISSUER", WHICH TERM INCLUDES ANY SUCCESSOR THERETO) AGREES, AND BY ACCEPTING A BENEFICIAL OWNERSHIP INTEREST IN THIS SECURITY EACH HOLDER OF THIS
SECURITY WILL BE DEEMED TO HAVE AGREED, FOR UNITED STATES FEDERAL INCOME TAX PURPOSES (1) TO TREAT THIS SECURITY AS A DEBT INSTRUMENT THAT IS SUBJECT TO TREAS. REG. SEC. 1.1275-4
(THE "CONTINGENT PAYMENT REGULATIONS"), (2) TO TREAT THE FAIR MARKET VALUE OF ANY STOCK RECEIVED UPON ANY CONVERSION OF THIS SECURITY OR UPON A PURCHASE OF THIS SECURITY AT THE HOLDER'S OPTION
AS A CONTINGENT PAYMENT FOR PURPOSES OF THE CONTINGENT PAYMENT REGULATIONS, AND (3) TO ACCRUE INTEREST WITH RESPECT TO THE SECURITY AS ORIGINAL ISSUE DISCOUNT FOR UNITED STATES FEDERAL INCOME
TAX PURPOSES ACCORDING TO THE "NONCONTINGENT BOND METHOD," SET FORTH IN THE CONTINGENT PAYMENT REGULATIONS, AND TO BE BOUND BY THE ISSUER'S DETERMINATION OF THE "COMPARABLE YIELD" AND "PROJECTED
PAYMENT SCHEDULE," WITHIN THE MEANING OF THE CONTINGENT PAYMENT REGULATIONS, WITH RESPECT TO THIS SECURITY. THE ISSUER AGREES TO PROVIDE PROMPTLY TO THE HOLDER OF THIS SECURITY, UPON WRITTEN REQUEST,
THE AMOUNT OF ORIGINAL ISSUE DISCOUNT, ISSUE PRICE, ISSUE DATE, YIELD TO MATURITY, COMPARABLE YIELD AND PROJECTED PAYMENT SCHEDULE. ANY SUCH WRITTEN REQUEST SHOULD BE SENT TO THE ISSUER AT THE
FOLLOWING ADDRESS: EDWARDS LIFESCIENCES CORPORATION, TREASURY DEPARTMENT/INVESTOR SERVICES, MS 27X,ONE EDWARDS WAY, IRVINE, CA 92614. 

        [UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY
PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE
OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR
ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES 

A-1

 

IN
DEFINITIVE CERTIFICATED FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER
NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.](1) 

	(1)
	This
legend should be included only if the Security is a Global Security. 

        [THIS
SECURITY AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
(THE "SECURITIES ACT"), OR ANY STATE OR FOREIGN SECURITIES LAWS AND ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER
(1) REPRESENTS THAT IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A ADOPTED UNDER THE SECURITIES ACT); (2) AGREES THAT IT WILL NOT, PRIOR TO THE DATE (THE "RESALE
RESTRICTION TERMINATION DATE") THAT IS TWO YEARS AFTER THE LATER OF (X) THE ORIGINAL ISSUANCE DATE OF THIS SECURITY (OR, IF THE OVER-ALLOTMENT OPTION GRANTED TO J.P. MORGAN
SECURITIES INC. IS EXERCISED, THE ORIGINAL ISSUE DATE OF THE SECURITIES ISSUED UPON EXERCISE OF SUCH OPTION) AND (Y) THE LAST DATE ON WHICH EDWARDS LIFESCIENCES CORPORATION (THE
"ISSUER", WHICH TERM INCLUDES ANY SUCCESSOR THERETO) OR ANY "AFFILIATE" (AS DEFINED IN RULE 144 UNDER THE SECURITIES ACT) OF THE ISSUER WAS THE OWNER OF THIS SECURITY, RESELL OR OTHERWISE TRANSFER
THIS SECURITY OR THE
COMMON STOCK ISSUABLE UPON CONVERSION OF THIS SECURITY, EXCEPT (A) TO THE ISSUER OR A SUBSIDIARY THEREOF; (B) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A ADOPTED
UNDER THE SECURITIES ACT; (C) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 ADOPTED UNDER THE SECURITIES ACT (IF AVAILABLE), OR (D) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT; (3) AGREES THAT IT WILL, PRIOR TO ANY TRANSFER OF THIS SECURITY PRIOR TO THE RESALE RESTRICTION TERMINATION DATE, FURNISH TO THE TRUSTEE AND THE
ISSUER SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS MAY BE REQUIRED BY THEM 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; AND (4) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS SECURITY OR ANY SHARE OF COMMON STOCK ISSUED UPON CONVERSION HEREOF ARE
TRANSFERRED (OTHER THAN A TRANSFER PURSUANT TO CLAUSE 2(D) ABOVE) A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.](2) 

        [THE
HOLDER OF THIS SECURITY IS ENTITLED TO THE BENEFITS OF A REGISTRATION RIGHTS AGREEMENT (AS SUCH TERM IS DEFINED IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF) AND,
BY ITS ACCEPTANCE HEREOF, AGREES TO BE BOUND BY AND TO COMPLY WITH THE PROVISIONS OF SUCH REGISTRATION RIGHTS AGREEMENT.](2) 

	(2)
	This
legend should be included only if the Security is a Transfer Restricted Security. 

A-2

 
 
 

EDWARDS LIFESCIENCES CORPORATION*
  
    3.875% Convertible Senior Debentures due 2033    
    

	No.	 	CUSIP:	[Transfer Restricted Global Securities—28176EA A6]

[Unrestricted Global Securities—28176EA B4]

        EDWARDS
LIFESCIENCES CORPORATION, a Delaware corporation (the "Company", which term shall include any successor under the Indenture referred to on the reverse hereof), promises to pay to
                        , or registered assigns, the principal amount
of                        Dollars ($            ) [, or such lesser
amount as is indicated in the records of the Trustee and the
Depositary,](3) on May 15, 2033, and to pay interest thereon from May 9, 2003 or from the most recent date to which interest has been paid or duly provided for,
semi-annually in arrears on May 15 and November 15 of each year (each, an "Interest Payment Date"), commencing on November 15, 2003, at the rate of 3.875% per annum
(and, in the event and to the extent that Contingent Interest shall be payable on this Security at any time as provided herein and in the Indenture, to pay such Contingent Interest at the rate and on
the dates specified herein), until the principal hereof is paid in full or made available for payment or until such date on which this Security is converted into Common Stock (or other securities or
property) as provided in the Indenture, and to pay interest at the rate of 3.875% per annum on any overdue principal and, to the extent permitted by law, on any overdue installment of interest and on
any overdue installment of Liquidated Damages, if any. Anything herein to the contrary notwithstanding, if any Interest Payment Date, Stated Maturity, Redemption Date, Purchase Date, Change in Control
Purchase Date or other date on which a payment hereon is due falls on a day that is not a Business Day, the required payment of interest, if any, Contingent Interest, if any, principal and Liquidated
Damages, if any, will be made on the next succeeding Business Day and no interest, Contingent Interest, if any, Liquidated Damages, if any, or other amount will accrue on that payment for the period
from and after that Interest Payment Date, Stated Maturity, Redemption Date, Purchase Date, Change in Control Purchase Date or other date, as the case may be, to the date of payment on such next
succeeding Business Day. The accrued and unpaid interest, if any, Contingent Interest, if any, and Liquidated Damages, if any, so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Security (or one or more predecessor Securities) is registered at the close of business on the regular record
date for such interest, which will be the May 1 or November 1 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date (a "Regular Record Date").
However, in the case of Securities called for redemption on a Redemption Date or purchased by the Company on a Purchase Date or Change in Control Purchase Date during the period from the close of
business on a Regular Record Date to the opening of business on the next succeeding Interest Payment Date, accrued and unpaid interest, if any, Contingent Interest, if any, and Liquidated Damages, if
any, will be paid (unless such Security is converted) on such Redemption Date, Purchase Date or Change in Control Purchase Date, as the case may be, to the Holders of such Securities so redeemed or
purchased. Any accrued and unpaid interest, Contingent Interest, if any, and Liquidated Damages, if any, not so punctually paid or duly provided for on any Interest Payment Date will forthwith cease
to be payable to the Holder on the applicable Regular Record Date and may be paid (a) to the Person in whose name this Security (or one or more predecessor Securities) is registered at the
close of business on a Special Record Date for the payment of such defaulted interest to be fixed by the Company, notice whereof will be given to Holders as provided in the Indenture, or (b) at
any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities may be listed, and upon such notice as may be required by such securities
exchange, all as more fully provided in the Indenture. Anything herein to the contrary notwithstanding, Liquidated Damages shall be payable to the Holder of this Security only in the event and to the
extent such Holder is entitled to receive Liquidated Damages pursuant to the Registration Rights Agreement. 

	*
	All
references to, and all provisions relating to, Liquidated Damages shall be deleted if the Security is not a Transfer Restricted Security.

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

A-3

 

        Reference
is hereby made to the further provisions of this Security set forth on the reverse side of this Security, which further provisions shall for all purposes have the same effect
as if set forth at this place. 

[SIGNATURE PAGE FOLLOWS]

A-4

 

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

	Dated:	 	EDWARDS LIFESCIENCES CORPORATION
	

 	
 	

 	

 
	 	 	By:	    

	 	 	Title:

A-5

 
 
 

TRUSTEE'S CERTIFICATE OF AUTHENTICATION    
    

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

	 	 	JPMORGAN CHASE BANK,

as Trustee
	

 	
 	

 	

 
	 	 	By:	    
 Authorized Signatory

A-6

  

 
 

[FORM OF REVERSE OF SECURITY]    
    
    3.875% Convertible Senior Debentures due 2033    

        This
Security is one of a duly authorized issue of 3.875% Convertible Senior Debentures due 2033 (the "Securities"), limited in aggregate principal amount to $150,000,000 (subject to the
exceptions provided in the Indenture referred to below) of EDWARDS LIFESCIENCES CORPORATION, a Delaware corporation (including any successor under the Indenture hereinafter referred to, the
"Company"), issued under an Indenture, dated as of May 9, 2003 (as the same may be amended or supplemented from time to time, the "Indenture"), between the Company and JPMORGAN CHASE BANK, as
trustee (the "Trustee", which term includes any successor trustee under the Indenture). The terms of this Security include those stated in the Indenture, those made part of the Indenture by reference
to or pursuant to the Trust Indenture Act of 1939, as amended ("TIA"), and those set forth in this Security. This Security is subject to all such terms, and Holders are referred to the Indenture and
the TIA for a statement of all such terms. To the extent permitted by applicable law, in the event of any inconsistency between the terms of this Security and the terms of the Indenture, the terms of
the Indenture shall control. Capitalized terms used but not defined herein have the meanings assigned to them in the Indenture. 

1.    INTEREST    

        Subject
to Section 2 below, interest on the Securities will be computed on the basis of a 360-day year comprised of twelve 30-day months. 

        Persons
who are the Holders of Securities at the close of business on a Regular Record Date will be entitled to receive the payment of accrued and unpaid interest, if any, Contingent
Interest, if any, and Liquidated Damages, if any, payable on the corresponding Interest Payment Date (notwithstanding the conversion of such Securities at any time after the close of business on such
Regular Record Date), unless such Securities have been called for redemption on a Redemption Date or are purchased by the Company at the option of the Holder on a Purchase Date or Change in Control
Purchase Date during the period from the close of business on such Regular Record Date to the opening of business on such Interest Payment Date. Securities surrendered for conversion by a Holder
during the period from the close of business on any Regular Record Date to the opening of business on the next Interest Payment Date, except for Securities called for redemption on a Redemption Date
during the period from the
close of business on such Regular Record Date to the opening of business on such Interest Payment Date, must be accompanied by payment from the Holder of an amount in Cash equal to the amount of
accrued and unpaid interest, Contingent Interest, if any, and Liquidated Damages, if any, payable on such Interest Payment Date with respect to the principal amount of the Securities so converted. 

2.    CONTINGENT INTEREST    

        Beginning
with the six-month Interest Period commencing on May 15, 2008, the Company will pay contingent interest ("Contingent Interest") during a
six-month Interest Period if the average Trading Price for the five Trading Days ending on and including the third Trading Day immediately preceding the first day of such
six-month Interest Period equals or exceeds 120% of the principal amount of such Security. 

        The
Contingent Interest payable per $1,000 principal amount of a Security in respect of any six-month Interest Period in which Contingent Interest is payable shall accrue at
the rate of 0.25% per six-month Interest Period of the average Trading Price per $1,000 principal amount of such Security for the applicable five Trading Day period ending on and including
the third Trading Day immediately preceding the first day of such six-month Interest Period. The average Trading Price shall be calculated to the nearest cent, with one-half
cent being rounded upwards. 

        If
Contingent Interest is payable in respect of any Security, then such Contingent Interest will be payable on the same dates and to the same Persons entitled to receive the interest
otherwise payable 

A-7

 

on
such Security. Contingent Interest, if payable, will accrue from and including the first day of the applicable six-month Interest Period to, but excluding, the date of payment
(including payment on any Interest Payment Date, Stated Maturity, Redemption Date, Purchase Date or Change in Control Purchase Date). The amount of Contingent Interest payable on any date shall be
calculated by the Company and shall be calculated on the same basis as which the interest otherwise payable on the Securities is payable, appropriately adjusted (if deemed necessary by the Company in
its sole and absolute discretion) to reflect the fact that the Contingent Interest rate is stated on a six-month basis rather than a per annum basis. 

        If
the Company determines that Holders will be entitled to receive Contingent Interest during a six-month Interest Period, the Company will mail notice to that effect to
Holders at their addresses in the register of Securities maintained by the Registrar or issue a press release to that effect, in each case promptly after the Company makes that determination. 

        The
term "Interest Period" means the period beginning on and including May 15 through and including the next succeeding November 14 and the six-month period
beginning on and including November 15 through and including the next succeeding May 14. 

3.    METHOD OF PAYMENT    

        Holders
must surrender Securities to a Paying Agent to collect the principal of and interest, if any, Contingent Interest, if any, and Liquidated Damages, if any, payable in respect of
such Securities at Stated Maturity or on any Redemption Date, Purchase Date, Change in Control Purchase Date or other date on which principal is payable, and the Company shall pay such amounts at the
office of the Paying Agent or, at the option of the Company, by wire transfer. Interest, Contingent Interest, if any, and Liquidated Damages, if any, on Securities shall be paid in Cash and may be
paid by mailing a check to the address on the Person entitled thereto as such address shall appear in the register of Securities maintained by the Registrar or, at the option of the Company, by wire
transfer. 

4.    PAYING AGENT, CONVERSION AGENT, REGISTRAR AND BID SOLICITATION AGENT    

        Initially,
the Trustee shall act as Paying Agent, Conversion Agent, Registrar and Bid Solicitation Agent. The Company may appoint and change any Paying Agent, Conversion Agent,
Registrar, co-registrar or Bid Solicitation Agent or approve a change in the office through which any Paying Agent, Conversion Agent, Registrar or co-registrar acts without
notice, other than notice to the Trustee. The Company or any of its Subsidiaries or any of their Affiliates may act as Paying Agent, Conversion Agent, Registrar, co-registrar or Bid
Solicitation Agent. 

5.    AMOUNT OF SECURITIES    

        The
Securities are unsubordinated and unsecured obligations of the Company limited to $150,000,000 aggregate principal amount, subject to the exceptions set forth in Sections 2.7 and 2.8
of the Indenture. 

6.    REDEMPTION AT THE OPTION OF THE COMPANY    

        No
sinking fund is provided for the Securities. Prior to May 15, 2008, the Securities will not be redeemable at the option of the Company. On or after May 15, 2008, the
Company may redeem the Securities, at its option, at any time in whole or from time to time in part, upon notice to the Holders of Securities to be redeemed as provided in the Indenture, at a
redemption price equal to 100% of the principal amount of the Securities to be redeemed plus accrued and unpaid interest, if any, accrued and unpaid Contingent Interest, if any, and accrued and unpaid
Liquidated Damages, if any, to, but excluding, the Redemption Date (the "Redemption Price"); provided that payments of accrued and unpaid interest, if any, Contingent Interest, if any, and Liquidated
Damages, if any, that are due and payable on any Interest Payment Date falling on or prior to a Redemption Date shall be payable on such Interest Payment Date to the Persons that were the Holders of
the Securities (or one or more 

A-8

 

predecessor
Securities) at the close of business on the relevant Regular Record Date (in which case the Redemption Price shall not include any such accrued and unpaid interest, if any, Contingent
Interest, if any, or Liquidated Damages, if any, paid or duly provided for on such Interest Payment Date). Any redemption of Securities shall be subject to the further terms and conditions set forth
in the Indenture. 

7.    NOTICE OF REDEMPTION AT THE OPTION OF THE COMPANY    

        Notice
of redemption at the option of the Company shall be mailed at least 30 days but not more than 60 days before the Redemption Date to each Holder of Securities to be
redeemed at the Holder's address as set forth in the register of Securities maintained by the Registrar. If money sufficient to pay the Redemption Price of all Securities (or portions thereof) to be
redeemed on the Redemption Date is deposited with the Paying Agent on or before the Redemption Date, then on and after the Redemption Date, interest, Contingent Interest, if any, and Liquidated
Damages, if any, shall cease to accrue on the Securities (or portions thereof) called for redemption and such Securities (or portions thereof) will cease to be outstanding. Securities in denominations
larger than $1,000 principal amount may be redeemed in part but only in integral multiples of $1,000 principal amount. 

8.    PURCHASE BY THE COMPANY AT THE OPTION OF THE HOLDER; PURCHASE AT THE OPTION OF THE HOLDER UPON A CHANGE IN CONTROL    

        (a)   Subject
to the terms and conditions of the Indenture, a Holder shall have the option to require the Company to purchase the Securities held by such Holder on
May 15, 2008, May 15, 2013 and May 15, 2018 (each, a "Purchase Date") at a purchase price equal to 100% of the principal amount of the Securities to be purchased, plus accrued and
unpaid interest, if any, accrued and unpaid Contingent Interest, if any, and accrued and unpaid Liquidated Damages, if any, on the Securities to be so purchased to, but excluding, the applicable
Purchase Date (the "Purchase Price"); provided that payments of accrued and unpaid interest, Contingent Interest, if any, and Liquidated Damages, if any, that are due and payable on any Interest
Payment Date falling on or prior to a Purchase Date will be payable on such Interest Payment Date to the Persons that were the Holders of the Securities (or one or more predecessor Securities) at the
close of business on the relevant Regular Record Date (in which case the Purchase Price shall not include any such accrued and unpaid interest, Contingent Interest, if
any, or Liquidated Damages, if any, paid or duly provided for on such Interest Payment Date). In order to exercise this option, a Holder must satisfy the conditions set forth in the Indenture,
including the delivery of a Purchase Notice containing the information set forth in the Indenture within the time period specified in the Indenture and the delivery of Securities to be purchased as
provided in the Indenture. The Company will pay the Purchase Price in Cash for any Securities to be purchased on the Purchase Date occurring on May 15, 2008. With respect to the May 15,
2013 and May 15, 2018 Purchase Dates, the Purchase Price may be paid by the Company, at its option, in Cash or by the delivery of shares of Common Stock, or in any combination thereof as set
forth in the Indenture, provided that the Company will pay any accrued and unpaid interest, Contingent Interest, if any, and Liquidated Damages, if any, in Cash. 

        Securities
in denominations larger than $1,000 principal amount may be purchased in part, but only in integral multiples of $1,000 principal amount. 

        (b)   If
a Change in Control shall occur at any time prior to May 15, 2008, each Holder shall have the right, at such Holder's option and subject to the terms and
conditions of the Indenture, to require the Company to purchase all of such Holder's Securities or any portion of the principal amount thereof that is equal to $1,000 or an integral multiple of $1,000
on the Change in Control Purchase Date specified by the Company in accordance with the provisions of the Indenture at a Change in Control Purchase Price equal to 100% of the principal amount of
Securities to be purchased, plus accrued and unpaid interest, if any, accrued and unpaid Contingent Interest, if any, and accrued and unpaid Liquidated Damages, if any, to, but excluding, the
applicable Change 

A-9

 

in
Control Purchase Date (the "Change in Control Purchase Price"); provided the payments of accrued and unpaid interest, Contingent Interest, if any, and Liquidated Damages, if any, that are due and
payable on any Interest Payment Date falling on or prior to a Change in Control Purchase Date will be payable on such Interest Payment Date to the Persons that were the Holders of the Securities (or
one or more predecessor Securities) at the close of business on the relevant Regular Record Date (in which case the Change in Control Purchase Price shall not include any such accrued and unpaid
interest, Contingent Interest, if any, or Liquidated Damages, if any, paid or duly provided for on such Interest Payment Date). The Change in Control Purchase Price shall be paid by the Company, at
its option, in Cash, by the delivery of shares of Common Stock or in any combination thereof as set forth in the Indenture, provided that the Company will pay any accrued and unpaid interest,
Contingent Interest, if any, and Liquidated Damages, if any, in Cash. 

        (c)   Holders
have the right to withdraw any Purchase Notice or Change in Control Purchase Notice, as the case may be, by delivery to the Paying Agent of a written notice of
withdrawal prior to 5:00 p.m. (New York City time) on the fifth Business Day prior to such Purchase Date or Change in Control Purchase Date, as the case may be, and otherwise in accordance with
the provisions of the Indenture. 

        (d)   If
Cash and/or Common Stock (if permitted under the Indenture) sufficient to pay a Purchase Price or Change in Control Purchase Price, as the case may be, of all
Securities or portions thereof to be
purchased as of the Purchase Date or the Change in Control Purchase Date, as the case may be, is deposited with the Paying Agent on or before the Purchase Date or the Change in Control Purchase Date,
as the case may be, interest, Contingent Interest, if any, and Liquidated Damages, if any, shall cease to accrue on such Securities (or portions thereof) on and after such Purchase Date or Change in
Control Purchase Date, as the case may be, and the Holders thereof shall have no other rights as such (other than the right to receive the Purchase Price or Change in Control Purchase Price, as the
case may be, upon surrender of such Securities). 

        (e)   As
provided in the Indenture, any Purchase Date or Change in Control Purchase Date may be extended as necessary to comply with applicable law. 

9.    CONVERSION    

        Subject
to and in compliance with the terms and conditions of the Indenture (including, without limitation, the conditions to conversion of this Security set forth in Article XII
thereof), a Holder is entitled, at such Holder's option, to convert the Holder's Securities (or any portion of the principal amount thereof that is $1,000 or an integral multiple of $1,000), into
fully paid and nonassessable of shares of Common Stock at the Conversion Price in effect on the date of conversion. The number of full shares of Common Stock issuable upon conversion of a Security (or
portion thereof) shall be equal to the amount obtained by dividing the principal amount of such Security (or portion thereof) being converted by the Conversion Price as in effect at the time of
conversion and rounding the quotient as provided in the Indenture. 

        A
Security in respect of which a Holder has delivered a Purchase Notice or Change in Control Repurchase Notice, as the case may be, exercising the right of such Holder to require the
Company to repurchase such Security may be converted only if such Purchase Notice or Change in Control Purchase Notice is withdrawn in accordance with the terms of the Indenture. If a Security (or
portion thereof) is called for redemption, the Holder of such Security (or portion thereof) may convert such Security (or portion thereof) called for redemption at any time before the close of
business on the Business Day immediately preceding the Redemption Date. 

        The
initial Conversion Price is $54.66 per share of Common Stock, subject to adjustment in certain events described in the Indenture. 

A-10

 

        To
surrender a Security for conversion, a Holder must (1) in the case of Global Securities, comply with the Applicable Procedures in effect at that time, or in the case of
Certificated Securities, surrender the Security to the Conversion Agent, (2) complete and manually sign the conversion notice below (or
complete and manually sign a facsimile of such notice) and deliver such notice to the Conversion Agent, (3) furnish appropriate endorsements and transfer documents, (4) pay all funds
required, if any, relating to interest, Contingent Interest, if any, or Liquidated Damages, if any, and any transfer or similar tax, if required, and (5) comply with any other applicable
requirements of the Indenture. 

        No
fractional shares of Common Stock shall be issued upon conversion of any Security. Instead, the Company shall pay a Cash adjustment as provided in the Indenture. 

        No
payment or adjustment will be made for accrued and unpaid interest, if any, accrued and unpaid Contingent Interest, if any, or accrued and unpaid Liquidated Damages, if any, on any
Securities (or portions thereof) to be converted or for dividends on the shares of Common Stock issuable upon conversion. 

        On
conversion of a Security, that portion of accrued and unpaid interest, including Contingent Interest, if any, on the converted Security attributable to the period from the most recent
Interest Payment Date (or, if no Interest Payment Date has occurred, from May 9, 2003) through the date of conversion, and Liquidated Damages, if any, and Tax Original Issue Discount accrued
through the date of conversion with respect to the converted Security shall not be cancelled, extinguished or forfeited, but rather shall be deemed to be paid in full to the Holder thereof through
delivery of the Common Stock (together with the Cash payment, if any, in lieu of fractional shares), in exchange for the Security being converted pursuant to the provisions hereof, and the fair market
value of such shares of Common Stock (together with any such Cash payment in lieu of fractional shares) shall be treated as issued, to the extent thereof, first in exchange for accrued and unpaid
interest (including Contingent Interest, if any), and Liquidated Damages, if any, and Tax Original Issue Discount accrued through the date of conversion and the balance, if any, of such fair market
value of such Common Stock (and any such Cash payment) shall be treated as issued in exchange for the principal amount of the Security being converted pursuant to the provisions hereof. 

        The
Company agrees, and each Holder and any beneficial owner of a Security by its purchase thereof shall be deemed to agree, to treat, for United States federal income tax purposes, the
fair market value of the Common Stock received upon the conversion of a Security (together with any Cash payment in lieu of fractional shares) as a contingent payment on the Security for purposes of
Treasury Regulation Section 1.1275-4(b). 

10.    DENOMINATIONS; TRANSFER; EXCHANGE    

        The
Securities are in registered form, without coupons, in denominations of $1,000 principal amount and multiplies of $1,000. A Holder may transfer or exchange Securities in accordance
with, and subject to any applicable restrictions on transfer or exchange set forth in, the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements and
transfer documents and to pay any taxes and fees required by law or permitted by the Indenture. The Registrar need not
register the transfer of or exchange any Securities under certain circumstances provided in the Indenture. 

11.    PERSONS DEEMED OWNERS    

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

12.    UNCLAIMED MONEY OR PROPERTY    

        The
Trustee and the Paying Agent shall return to the Company upon written request any money, securities or other property held by them for the payment of any amount with respect to the
Securities that remains unclaimed for two years after the date upon which that payment became due, subject to 

A-11

 

any
applicable unclaimed property law, provided, however, that the Trustee or such Paying Agent, before being required to make any such return, shall at
the expense of the Company cause to be published once in a newspaper of general circulation in The City of New York or mail to each such Holder notice that such money, securities or property remains
unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such publication or mailing, any unclaimed money, securities or other property then
remaining shall be returned to the Company. After return to the Company, Holders entitled to the money, securities or other property must look to the Company for payment as general creditors unless an
applicable abandoned property law designates another Person. 

13.    AMENDMENT; WAIVER    

        Subject
to certain exceptions set forth in the Indenture, (i) the Indenture or the Securities may be amended with the consent of the Holders of at least a majority in aggregate
principal amount of the Securities at the time outstanding and (ii) certain defaults or noncompliance with certain provisions and their consequences may be waived with the consent of the
Holders of a majority in aggregate principal amount of the Securities at the time outstanding. The Indenture and the Securities may be amended without the consent of any Holders under circumstances
set forth in Section 11.1 of the Indenture. 

14.    DEFAULTS AND REMEDIES    

        If
an Event of Default (other than an Event of Default arising from certain events of bankruptcy or insolvency) occurs and is continuing, the Trustee, or the Holders of at least 25% in
aggregate principal amount of the Securities at the time outstanding, may declare the principal amount of and any accrued and unpaid interest and Contingent Interest, if any, through the date of
acceleration on all the Securities to be due and payable immediately. Certain events of bankruptcy or insolvency are Events of Default which shall result in the principal of and any accrued and unpaid
interest and Contingent Interest, if any, on the Securities through the date of acceleration being declared due and payable immediately upon the occurrence of such Events of Default. Subject to the
terms and conditions of the Indenture, the Holders of not less than a majority in aggregate principal amount of the Securities at the time outstanding may rescind and annul an acceleration of the
Securities and its consequences. 

15.    CONSOLIDATION, MERGER, AND SALE OF ASSETS    

        In
the event that the Company shall consolidate with or merge into another Person or convey, transfer or lease its properties and assets substantially as entirety to another Person, as
described in Section 7.1 of the Indenture, the successor person (if other than the Company) or the person to which such conveyance, transfer or lease is made, as the case may be, shall succeed
to and substituted for, and may exercise every right and power of, the Company under the Indenture and the Securities and thereafter the Company shall be discharged from all obligations and covenants
to Holders under the Indenture and the Securities. 

16.    TRUSTEE AND AGENT DEALINGS WITH THE COMPANY    

        The
Trustee, Paying Agent, Conversion Agent, Bid Solicitation Agent and Registrar under the Indenture, each in its individual or any other capacity, may become the owner or pledgee of
Securities and may otherwise deal with and collect obligations owed to it by the Company or its Affiliates and may otherwise deal with the Company or its Affiliates with the same rights it would have
if it were not Trustee, Paying Agent, Conversion Agent, Bid Solicitation Agent or Registrar. 

17.    CALCULATIONS IN RESPECT OF THE SECURITIES    

        The
Company will be responsible for making all calculations called for under the Securities, the Indenture or the Registration Rights Agreement. These calculations include, but are not
limited to, determination of the Market Prices and Last Reported Sale Prices for the Common Stock, the Trading 

A-12

 

Price
of the Securities, whether Contingent Interest shall be payable on the Securities, the amount of accrued interest, Contingent Interest, if any, and Liquidated Damages, if any, on the Securities,
in the event that the Company shall elect to pay the Purchase Price or Change in Control Purchase Price, in whole or in part, in shares of Common Stock, the number of shares of Common Stock issuable
to make such payment, the amount of Cash payable in respect of fractional shares of Common Stock, and the Conversion Price of the Securities as in effect from time to time and whether the conditions
to conversion set forth in Section 12.1(a)(i) or 12.1(b)(i) of the Indenture have been satisfied. The Company will make these calculations in good faith and, absent manifest
error, these calculations will be final and binding on the Holders. The Company will provide to each of the Trustee, the Conversion Agent, the Bid Solicitation Agent and the Paying Agent, upon written
request, a schedule of its calculations and each of the Trustee, the Conversion Agent, the Bid Solicitation Agent and the Paying Agent is entitled to rely upon the accuracy of such calculations
without independent verification. The Trustee will forward the Company's calculations to any Holder upon the request of such Holder. 

18.    NO RECOURSE AGAINST OTHERS    

        No
recourse under or upon any obligation, covenant or agreement contained in the Indenture or the Securities, or because of any indebtedness or obligation evidenced hereby or thereby,
shall be had against any incorporator, as such, or against any past, present or future stockholder, officer, director or employee, as such, of the Company or any predecessor or successor, either
directly or through the Company or any predecessor or successor. By accepting a Security, each Holder waives and releases all such liability. The waiver and release are part of the consideration for
the issue of the Securities. 

19.    AUTHENTICATION    

        This
Security shall not be valid or obligatory for any purpose or entitled to any benefit under the Indenture until an authorized signatory of the Trustee manually signs the Trustee's
Certificate of Authentication on the other side of this Security. 

20.    DISCHARGE    

        Upon
compliance by the Company with certain conditions set forth in the Indenture, the Indenture shall cease to be of further effect except for certain provisions, specified in the
Indenture, which shall survive such discharge. 

21.    ABBREVIATIONS    

        Customary
abbreviations may be used in the name of a Holder or an assignee, such as TEN COM (=tenants in common), TENANT (=tenants by the entireties), JT TEN (=joint tenants with right
of survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors Act). 

22.    GOVERNING LAW    

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

A-13

  

 
 

ASSIGNMENT FORM    
    

To
assign this Security, fill in the form below: 

	For value received, I or we assign and transfer this Security to
	

    
 (Insert assignee's soc. sec. or tax ID no.)
	

    

	

    

	

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

 

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

	 	 	 	Your Signature:
	

 	

 	
 	

 
	Date:	    
	 	    
 (Sign exactly as your name appears on the other side of this Security. Your signature must correspond with the name as it appears on the face of this Security in
every particular, without any change whatever.)
	

Signature Guaranteed	
 	

 
	

    
 Participant in a Recognized Signature Guarantee Medallion Program	
 	

 
	

By:	

    
 Authorized Signatory

	
 	

 

A-14

 
 
 

CONVERSION NOTICE    
    

        This notice relates to the 3.875% Convertible Senior Debentures due 2033 (the "Securities") of Edwards Lifesciences Corporation, a Delaware corporation (the
"Company," which terms includes any successor under the Indenture referred to below), issued pursuant to an Indenture, dated as of May 9, 2003 (as amended or supplemented from time to time, the
"Indenture"), between the Company and JPMorgan Chase Bank, as Trustee. Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Indenture. 

        The
undersigned Holder of this Security hereby irrevocably exercises the option to convert this Security, or the portion of this Security designated below, into Common Stock of the
Company, upon the terms and subject to the conditions of the Indenture, and directs that the shares issuable and deliverable upon conversion, together with any check in payment of fractional shares,
be issued in the name of and delivered to the undersigned (or to a DTC participant holding on behalf of the undersigned), unless a different name has been indicated below (in which case both such
shares and any payment in respect of fractional shares will be made to the person indicated below). If shares are
to be issued in the name of a person other than the undersigned, (i) the undersigned will pay all transfer taxes and other governmental charges payable in connection therewith and
(ii) if the Securities being converted bear the Legend or are "restricted securities" (within the meaning of Rule 144 under the Securities Act of 1933), the undersigned is delivering
herewith a duly executed and completed Common Stock Transfer Certificate and acknowledges that the undersigned may be required to deliver such legal opinions and other documents required by the
Indenture before the undersigned or any other person will be entitled to receive any of such shares of Common Stock. 

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

        To
convert only a portion of this Security, state the principal amount to be converted (which must be $1,000 or an integral multiple of
$1,000): $                        . If you do not indicate the part of this Security to be converted, the entire
Security will be converted. 

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

	    
 (Insert assignee's soc. sec. or tax ID no.)
	

    

	

    

	

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

A-15

 

	 	 	 	Your Signature:
	

 	

 	
 	

 
	Date:	    
	 	    
 (Sign exactly as your name appears on the other side of this Security. Your signature must correspond with the name as it appears on the face of this Security in
every particular, without any change whatever.)
	

Signature Guaranteed	
 	

 
	

    
 Participant in a Recognized Signature Guarantee Medallion Program	
 	

 
	

By:	

    
 Authorized Signatory

	
 	

 

A-16

  

 
 

TRANSFER CERTIFICATE(4)    
    

	Re:
	3.875%
Convertible Senior Debentures due 2033 (the "Securities") of EDWARDS LIFESCIENCES CORPORATION (the "Company", which term includes any successor under the Indenture referred to
below) 

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

        o book-entry
or    o definitive form by
                         (the "Transferor"). 

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

        In
connection with such request and in respect of each such Security, the Transferor does hereby certify that the Transferor is familiar with transfer restrictions relating to the
Securities as provided in Sections 2.6 and 2.12 of the Indenture dated May 9, 2003 between the Company and JPMorgan Chase Bank, as trustee (as the same may be amended or supplemented from time
to time, the "Indenture"), and in the Legend (as defined in the Indenture), and further certifies that the transfer of each such Security is being made pursuant to an effective registration statement
under the Securities Act of 1933, as amended (the "Securities Act") (check applicable box) or the transfer or exchange, as the case may be, of such Security does not require registration under the
Securities Act because (check applicable box): 

	o
	Such
Security is being transferred to the Company or a Subsidiary;

	o
	Such
Security is being transferred to a "qualified institutional buyer" (as defined in Rule 144A under the Securities Act) in compliance
with Rule 144A under the Securities Act;

	o
	Such
Security is being transferred pursuant to and in compliance with an exemption from the registration requirements under the Securities
Act provided by, and in accordance with, Rule 144 (or any successor provision thereto) ("Rule 144") under the Securities Act, if available;

	o
	Such
Security is being acquired for the Transferor's own account, without transfer; or

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

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

	(4)
	This
certificate should only be included if this Security is a Transfer Restricted Security. 

A-17

 

	DATE:	 	    
 Insert Name of Transferor
	

 	
 	

    
 Signature(s) of Transferor

Title:
	

(If the registered owner is a corporation, partnership, other entity or fiduciary, the title of the person signing on behalf of such registered owner must be stated.)
	

 	
 	

Signature Guaranteed
	

 	
 	

    
 Participant in a Recognized Signature

Guarantee Medallion Program
	

 	
 	

 	

 
	 	 	By:	    
 Authorized Signatory

        To
be completed by transferee if the transfer is made pursuant to Rule 144A under the Securities Act (as defined above): 

        The
undersigned transferee represents and warrants (i) that it is a "qualified institutional buyer" as defined in Rule 144A under the Securities Act, and is aware that the
Securities (as defined above) are being transferred in reliance on Rule 144A under the Securities Act, (ii) the undersigned is acquiring the Securities for its own account or for the
account of one or more other qualified institutional buyers over which it exercises sole investment discretion (in which latter case the undersigned has given notice to each such account that the
Securities are being transferred in reliance on Rule 144A) and (iii) this instrument has been executed on behalf of the undersigned by one of its executive officers. The undersigned
transferee acknowledges and agrees that the Securities have not been registered under the Securities Act and may not be transferred except in accordance with the resale and other transfer restrictions
set forth on the face thereof and in the Indenture relating thereto. 

	Dated:	 	    
 Insert Name of Transferee
	

 	
 	

 	

 
	 	 	By:	    
 Executive Officer

A-18

 
 
 

COMMON STOCK TRANSFER CERTIFICATE(5)    
    

	Re:
	Common
Stock (the "Common Stock") of EDWARDS LIFESCIENCES CORPORATION (the "Company", which term includes any successor under the Indenture referred to below) 

        This
certificate relates to                          shares (the "Shares") of Common Stock owned in certificated form by
                        
(the "Transferor") or issuable upon conversion of 3.875% Convertible Senior Debentures due 2033 (the "Securities") of the Company owned by the Transferor. 

        The
Transferor has requested that the transfer agent of the Common Stock register the transfer of such Shares or, in the case of issuance of Shares upon conversion of Securities, that
such Shares be registered in a name other than that of the Transferor (any such transfer or issuance being hereinafter called a "transfer"). 

        In
connection with such request and in respect of each such Share, the Transferor does hereby certify that the Transferor is familiar with transfer restrictions relating to the Shares as
provided in Section 12.10 of the Indenture dated May 9, 2003 between the Company and JPMorgan Chase Bank, as trustee (as the same may be amended or supplemented from time to time, the
"Indenture"), and in the Restricted Common Stock Legend (as defined in the Indenture), and further certifies that the transfer of each such Share is being made pursuant to an effective registration
statement under the Securities Act of 1933, as amended (the "Securities Act") (check applicable box) or the transfer of such Share does not require registration under the Securities Act because (check
applicable box): 

	o
	Such
Share is being transferred to the Company or a Subsidiary;

	o
	Such
Share is being transferred pursuant to and in compliance with an exemption from the registration requirements under the Securities Act
provided by, and in accordance with, Rule 144 (or any successor provision thereto) ("Rule 144") under the Securities Act, if available; or

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

	DATE:	 	    
 Insert Name of Transferor
	 	 	    
 Signature(s) of Transferor

Title:
	

(If the registered owner is a corporation, partnership, other entity or fiduciary, the title of the person signing on behalf of such registered owner must be stated.)
	 	 	Signature Guaranteed
	 	 	    
 Participant in a Recognized Signature

Guarantee Medallion Program
	 	 	 	 
	 	 	By:	    
 Authorized Signatory

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

A-19

  

 
 

EXHIBIT B    
    
    [FORM OF RESTRICTIVE LEGEND FOR
  COMMON STOCK ISSUED UPON CONVERSION]    
    

        THE SHARES OF COMMON STOCK EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY
STATE OR FOREIGN SECURITIES LAWS AND ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT IT IS A
"QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A ADOPTED UNDER THE SECURITIES ACT); (2) AGREES THAT IT WILL NOT, PRIOR TO THE DATE (THE "RESALE RESTRICTION TERMINATION DATE") THAT IS
TWO YEARS AFTER THE LATER OF (X) THE ORIGINAL ISSUANCE DATE OF THE 3.875% CONVERTIBLE SENIOR DEBENTURES DUE 2033 (THE "DEBENTURES") OF THE ISSUER (AS DEFINED BELOW) UPON THE CONVERSION OF WHICH
ANY OF THE SHARES OF COMMON STOCK EVIDENCED HEREBY WERE ISSUED (OR, IF THE OVER-ALLOTMENT OPTION GRANTED TO J.P. MORGAN SECURITIES INC. WAS EXERCISED, THE ORIGINAL ISSUE DATE OF THE
DEBENTURES ISSUED UPON THE EXERCISE OF SUCH OPTION) AND (Y) THE LAST DATE ON WHICH EDWARDS LIFESCIENCES CORPORATION (THE "ISSUER", WHICH TERM INCLUDES ANY SUCCESSOR THERETO) OR ANY "AFFILIATE"
(AS DEFINED IN RULE 144 UNDER THE SECURITIES ACT) OF THE ISSUER WAS THE OWNER OF ANY OF THE SHARES OF COMMON STOCK EVIDENCED HEREBY OR ANY OF THE DEBENTURES UPON THE CONVERSION OF WHICH ANY SUCH
SHARES OF COMMON STOCK WERE ISSUED, RESELL OR OTHERWISE TRANSFER ANY OF THE SHARES OF COMMON STOCK EVIDENCED HEREBY, EXCEPT (A) TO THE ISSUER OR A SUBSIDIARY THEREOF; (B) TO A QUALIFIED
INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A ADOPTED UNDER THE SECURITIES ACT; (C) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 ADOPTED UNDER THE SECURITIES ACT (IF
AVAILABLE), OR (D) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT; (3) AGREES THAT IT WILL, PRIOR TO ANY TRANSFER OF ANY OF THE SHARES OF COMMON STOCK EVIDENCED
HEREBY PRIOR TO THE RESALE RESTRICTION TERMINATION DATE, FURNISH TO THE TRANSFER AGENT AND THE ISSUER SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS MAY BE REQUIRED BY THEM 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; AND (4) AGREES THAT IT WILL DELIVER TO
EACH PERSON TO WHOM ANY OF THE SHARES OF COMMON STOCK
EVIDENCED HEREBY ARE TRANSFERRED (OTHER THAN A TRANSFER PURSUANT TO CLAUSE 2(D) ABOVE) A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. 

B-1

  

 
 

EXHIBIT C    
    
    [FORM OF PURCHASE NOTICE AND CHANGE IN CONTROL PURCHASE NOTICE]
  OPTION OF HOLDER TO ELECT PURCHASE    
    

        This notice relates to the 3.875% Convertible Senior Debentures due 2033 (the "Securities") of Edwards Lifesciences Corporation, a Delaware corporation (the
"Company", which term includes any successor corporation under the Indenture referred to below), issued pursuant to an Indenture (as the same may be amended or supplemented from time to time, the
"Indenture"), dated as of May 9, 2003, between the Company and JPMorgan Chase Bank, as trustee. Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the
Indenture. 

        If
you elect to have a Security purchased, in whole or in part, by the Company pursuant to Article IV of the Indenture, check the following
box: o 

        If
you elect to have a Security purchased, in whole or in part, by the Company pursuant to Article V of the Indenture, check the following
box: o 

        If
certificated, insert the certificate number(s) of the Securities you will be surrendering for
repurchase:                          

        If
your Securities are in book-entry form, insert the name of the broker, dealer or other person through whom you own your
Securities:                          

        State
the principal amount of Securities you want to be purchased (must be $1,000 in principal amount or an integral multiple of
$1,000): $                        . 

        On
the terms and subject to the conditions provided in the Indenture, the undersigned hereby elects to have the Securities specified in the immediately preceding paragraph purchased on
the applicable Purchase Date or Change in Control Purchase Date, as the case may be. 

        If
the Company elects, pursuant to the Indenture, to pay the Purchase Price or Change in Control Purchase Price, as the case may be, to be paid as of (i) the May 15, 2013
or the May 15, 2018 Purchase Dates or (ii) the Change in Control Purchase Date, as the case may be, in whole or in part, in Common Stock but such Purchase Price or Change in Control
Purchase Price, as the case may be, shall ultimately be payable entirely in Cash because any of the conditions to the payment of the Purchase Price or Change in Control Purchase Price, as the case may
be, in Common Stock are not satisfied by the date specified in the Indenture, you elect (check only one of the following boxes): 

	o
	to
withdraw this notice as to some or all of the Securities to which this notice relates (State the principal amount of the Securities as
to which such withdrawal shall relate: $                         (if you do not indicate the principal amount of the
Securities to which such withdrawal relates, then such
withdrawal shall relate to all of the Securities); and, if certificated, state the certificate number(s) as to which such withdrawal shall
relate:                         ),
or

	o
	to
receive Cash in respect of the entire Purchase Price or Change in Control Purchase Price, as the case may be, for all Securities to
which this notice relates. 

If
you fail to indicate your choice with respect to the foregoing election, you shall be deemed to have elected to receive Cash in respect of the entire Purchase Price or Change in Control Purchase
Price, as the case may be, for all Securities subject to this notice under the foregoing circumstances described in this paragraph. 

        The
undersigned recognizes that the amount of Securities requested to be purchased above shall be purchased as of the Purchase Date or Change in Control Purchase Date, as the case may
be, pursuant to the terms and subject to the conditions specified in the Indenture and the Securities, and further acknowledges and agrees that, as provided in the Indenture, the Company shall be
entitled to 

C-1

 

extend
any Purchase Date or Change in Control Purchase Date if necessary to comply with applicable law or regulation or any comment or request of the staff of the Securities and Exchange Commission. 

        In
the event that the Purchase Price or Change in Control Purchase Price, as the case may be, for the Securities is payable, in whole or in part, in Common Stock of the Company, the
undersigned Holder directs that the shares issuable upon purchase, together with any check in payment of fractional shares, be issued in the name of and delivered to the undersigned, unless a
different name has been indicated below (in which case both such shares and any payment in respect of fractional shares will be made to the person indicated below). If shares are to be issued in the
name of a person other than the undersigned, the undersigned will pay all transfer taxes and other governmental charges payable in connection therewith. 

	 	 	 	Your Signature:
	

 	

 	
 	

 
	Date:	    
	 	    
 (Sign exactly as your name appears on the other side of this Security. Your signature must correspond with the name as it appears on the face of this Security in
every particular, without any change whatever.)
	

Signature Guaranteed	
 	

 
	

    
 Participant in a Recognized Signature

Guarantee Medallion Program	
 	

 
	

By:	

    
 Authorized Signatory

	
 	

 

C-2

 

        If
you want the stock certificate, if any, made out in another person's name, provide the following information with respect to such person: 

	    
 Name	 	 
	

    
 Social Security or Taxpayer Identification Number	
 	

 
	

    
 Street Address	
 	

 
	

    
 City, State and Zip Code	
 	

 

C-3

QuickLinks

TABLE OF CONTENTS

CROSS-REFERENCE TABLE

ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE

ARTICLE II THE SECURITIES

ARTICLE III OPTIONAL REDEMPTION

ARTICLE IV PURCHASE OF SECURITIES AT THE OPTION OF THE HOLDER

ARTICLE V PURCHASE OF SECURITIES AT THE OPTION OF THE HOLDER UPON A CHANGE OF CONTROL

ARTICLE VI COVENANTS

ARTICLE VII SUCCESSOR CORPORATION

ARTICLE VIII DEFAULTS AND REMEDIES

ARTICLE IX TRUSTEE

ARTICLE X DISCHARGE OF INDENTURE

ARTICLE XI AMENDMENTS

ARTICLE XII CONVERSION

ARTICLE XIII MISCELLANEOUS

Projected Payment Schedule(1) Per $1,000 Principal Amount at Maturity of Securities

EXHIBIT A [FORM OF FACE OF SECURITY]

EDWARDS LIFESCIENCES CORPORATION* 3.875% Convertible Senior Debentures due 2033

TRUSTEE'S CERTIFICATE OF AUTHENTICATION

[FORM OF REVERSE OF SECURITY] 3.875% Convertible Senior Debentures due 2033

ASSIGNMENT FORM

CONVERSION NOTICE

TRANSFER CERTIFICATE(4)

COMMON STOCK TRANSFER CERTIFICATE(5)

EXHIBIT B [FORM OF RESTRICTIVE LEGEND FOR COMMON STOCK ISSUED UPON CONVERSION]

EXHIBIT C [FORM OF PURCHASE NOTICE AND CHANGE IN CONTROL PURCHASE NOTICE] OPTION OF HOLDER TO ELECT PURCHASEQuickLinks
 -- Click here to rapidly navigate through this document

EXHIBIT 4.3  

PRIVILEGED AND CONFIDENTIAL  

Edwards Lifesciences Corporation 

and

Equiserve
Trust Company, N.A. 

as

Rights
Agent 

Rights
Agreement 

Dated
as of March 31, 2000 

 
 
 

Table of Contents    
    

	Section
 
	 
	 	Page

	Section 1.	Certain Definitions	 	1
	

Section 2.	

Appointment of Rights Agent	
 	

4
	

Section 3.	

Issue of Rights Certificates	
 	

4
	

Section 4.	

Form of Rights Certificates	
 	

5
	

Section 5.	

Countersignature and Registration	
 	

6
	

Section 6.	

Transfer, Split Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights Certificates	
 	

6
	

Section 7.	

Exercise of Rights; Purchase Price; Expiration Date of Rights	
 	

7
	

Section 8.	

Cancellation and Destruction of Rights Certificates	
 	

9
	

Section 9.	

Reservation and Availability of Capital Stock	
 	

9
	

Section 10.	

Preferred Stock Record Date	
 	

10
	

Section 11.	

Adjustment of Purchase Price, Number and Kind of Shares or Number of Rights	
 	

11
	

Section 12.	

Certificate of Adjusted Purchase Price or Number of Shares	
 	

16
	

Section 13.	

Consolidation, Merger or Sale or Transfer of Assets, Cash Flow or Earning Power	
 	

17
	

Section 14.	

Fractional Rights and Fractional Shares	
 	

19
	

Section 15.	

Rights of Action	
 	

20
	

Section 16.	

Agreement of Rights Holders	
 	

20
	

Section 17.	

Rights Certificate Holder Not Deemed a Stockholder	
 	

21
	

Section 18.	

Concerning the Rights Agent	
 	

21
	

Section 19.	

Merger or Consolidation or Change of Name of Rights Agent	
 	

21
	

Section 20.	

Duties of Rights Agent	
 	

22
	

Section 21.	

Change of Rights Agent	
 	

23
	

Section 22.	

Issuance of New Rights Certificates	
 	

24
	

Section 23.	

Redemption and Termination	
 	

24
	

Section 24.	

Exchange	
 	

25
	

Section 25.	

Notice of Certain Events	
 	

26
	

Section 26.	

Notices	
 	

26
	

Section 27.	

Supplements and Amendments	
 	

27
	

Section 28.	

Successors	
 	

27
	

Section 29.	

Determination and Actions by the Board of Directors, etc.	
 	

27
	

Section 30.	

Benefits of this Agreement	
 	

28
	

Section 31.	

Severability	
 	

28
	

Section 32.	

Governing Law	
 	

28
	

Section 33.	

Counterparts	
 	

28
	

Section 34.	

Descriptive Headings	
 	

28

i

RIGHTS AGREEMENT  

        RIGHTS AGREEMENT, dated as of March 31, 2000 (the "Agreement"), between Edwards Lifesciences Corporation, a Delaware corporation (the "Company"), and
Equiserve Trust Company, N.A., a federally chartered trust company (the "Rights Agent"). 

W I T N E S S E T H:  

        WHEREAS, on March 10, 2000 (the "Rights Dividend Declaration Date"), the Board of Directors of the Company authorized and declared a dividend distribution
of one Right (as hereinafter defined) for each share of Common Stock (as hereinafter defined) of the Company outstanding at the Close of Business on March 31, 2000, after giving effect to the
distribution of shares of Common Stock by Baxter International Inc. to its stockholders (the "Record Date"), each Right initially representing the right to purchase one
one-hundredth of a share of Series A Junior Participating Preferred Stock of the Company having the rights, powers and preferences set forth in the form of Certificate of
Designations attached hereto as Exhibit A, upon the terms and subject to the conditions hereinafter set forth (the "Rights"), and has further authorized the issuance of one Right (as such
number may hereinafter be adjusted pursuant to the provisions of Section 11(p) hereof) for each share of Common Stock of the Company issued between the Record Date and the earlier of the
Distribution Date or the Expiration Date (as such terms are hereinafter defined) or, in certain circumstances provided in Section 22 hereof, after the Distribution Date (as hereinafter
defined); 

        NOW,
THEREFORE, in consideration of the premises and the mutual agreements herein set forth, the parties hereby agree as follows: 

        Section 1.    Certain Definitions.    For purposes of this Agreement, the following terms have the meanings
indicated: 

        (a)   "Acquiring
Person" shall mean any Person who or which, together with all Affiliates and Associates of such Person, shall be the Beneficial Owner of 15% or more of the
shares of Common Stock then outstanding, but shall not include the Company, any Subsidiary of the Company, any employee benefit plan of the Company or of any Subsidiary of the Company, or any Person
organized, appointed and acting in such appointed capacity, or established by the Company for or pursuant to the terms of any such plan. Notwithstanding the foregoing, no Person shall become an
"Acquiring Person" as the result of an acquisition of shares of Common Stock by the Company which, by reducing the number of shares outstanding, increases the proportionate number of shares
beneficially owned by such Person to 15% or more of the shares of Common Stock then outstanding; provided,  however, that if a Person shall become the
Beneficial Owner of 15% or more of the shares of Common Stock then outstanding by reason of share purchases
by the Company and shall, after such share purchases by the Company, become the Beneficial Owner of any additional shares of Common Stock, then such Person shall be deemed to be an "Acquiring Person".
Notwithstanding the foregoing, no Person shall become an "Acquiring Person" if (i) such Person has reported or is required to report such ownership on Schedule 13G under the Securities
Exchange Act of 1934, as amended and in effect on the date of this Agreement (the "Exchange Act") (or any comparable or successor report) or on Schedule 13D under the Exchange Act (or any
comparable or successor report) which Schedule 13D does not state any intention to or reserve the right to control or influence the management or policies of the Company or engage in any of the
actions specified in Item 4 of such schedule (other than the disposition of the Common Stock), (ii) such Person, together with all Affiliates and Associates of such Person, does not
beneficially own 20% or more of the outstanding shares of Common Stock then outstanding and (iii) within ten (10) Business Days of being requested by the Company to advise it regarding
the same, such Person properly certifies to the Company that such Person acquired shares of Common Stock in excess of 14.9% inadvertently or without knowledge of the terms of the Rights and who,
together with all Affiliates and Associates, thereafter does not acquire any additional shares of Common Stock while the Beneficial Owner of 15% or more of the shares of Common Stock then outstanding;  provided, however, that (i) if the Person requested to so certify fails to do so within 

 

ten
(10) Business Days, then such Person shall become an Acquiring Person immediately after such ten-Business-Day period, (ii) if the Person requested to so
certify, so certifies but the Board of Directors determines that such Person so certified falsely, then such Person shall become an Acquiring Person immediately upon such determination and
(iii) if the Person acquires additional shares of Common Stock while the Beneficial Owner of 15% or more of the shares of Common Stock then outstanding, then such Person shall immediately
become an Acquiring Person. 

        (b)   "Act"
shall mean the Securities Act of 1933, as amended. 

        (c)   "Affiliate"
and "Associate" shall have the respective meanings ascribed to such terms in Rule 12b-2 of the General Rules and Regulations under the
Exchange Act. 

        (d)   A
Person shall be deemed the "Beneficial Owner" of, and shall be deemed to "beneficially own," any securities: 

        (i)    which
such Person or any of such Person's Affiliates or Associates, directly or indirectly, has the right to acquire (whether such right is exercisable immediately or
only after the passage of time) pursuant to any agreement, arrangement or understanding (whether or not in writing) or upon the exercise of conversion rights, exchange rights, rights, warrants or
options, or otherwise; provided, however, that a Person shall not be deemed the "Beneficial Owner" of,
or to "beneficially own," (A) securities tendered pursuant to a tender or exchange offer made by such Person or any of such Person's Affiliates or Associates until such tendered securities are
accepted for purchase or exchange, or (B) securities issuable upon exercise of Rights at any time prior to the occurrence of a Triggering Event, or (C) securities issuable upon exercise
of Rights from and after the occurrence of a Triggering Event which Rights were acquired by such Person or any such Person's Affiliates or Associates prior to the Distribution Date or pursuant to
Section 3(a) or Section 22 hereof (the "Original Rights") or pursuant to Section 11(i) hereof in connection with an adjustment made with respect to any Original Rights; 

        (ii)   which
such Person or any of such Person's Affiliates or Associates, directly or indirectly, has the right to vote or dispose of or has "beneficial ownership" of (as
determined pursuant to Rule 13d-3 of the General Rules and Regulations under the Exchange Act), including pursuant to any agreement, arrangement or understanding, whether or not in
writing; provided, however, that a Person shall not be deemed the "Beneficial Owner" of, or to
"beneficially own," any security under this subparagraph (ii) as a result of an agreement, arrangement or understanding to vote such security if such agreement, arrangement or understanding:
(A) arises solely from a revocable proxy given in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable provisions of the General Rules and
Regulations under the Exchange Act, and (B) is not also then reportable by such Person on Schedule 13D under the Exchange Act (or any comparable or successor report); or 

        (iii)  which
are beneficially owned, directly or indirectly, by any other Person (or any Affiliate or Associate thereof) with which such Person (or any of such Person's
Affiliates or Associates) has any agreement, arrangement or understanding (whether or not in writing), for the purpose of acquiring, holding, voting (except pursuant to a revocable proxy as described
in the proviso to subparagraph (ii) of this paragraph (d)) or disposing of any voting securities of the Company; 

provided, however, that nothing in this paragraph (d) shall cause a Person engaged in business as
an underwriter of securities to be the "Beneficial Owner" of, or to "beneficially own," any securities acquired through such Person's participation in good faith in a firm commitment underwriting
until the expiration of forty days after the date of such acquisition. 

2

 

        (e)   "Business
Day" shall mean any day other than a Saturday, Sunday or a day on which banking institutions in the State of New York are authorized or obligated by law or
executive order to close. 

        (f)    "Close
of Business" on any given date shall mean 5:00 P.M., New York time, on such date, provided,  however, that if such date is not a Business Day it shall
mean 5:00 P.M., New York time, on the next succeeding Business Day. 

        (g)   "Common
Stock" shall mean the common stock, par value $1.00 per share, of the Company, except that "Common Stock" when used with reference to any Person other than the
Company shall mean the capital stock of such Person with the greatest voting power, or the equity securities or other equity interest having power to control or direct the management, of such Person. 

        (h)   "Person"
shall mean any individual, firm, limited liability company, corporation, partnership or other entity and shall include any successor (by merger or otherwise) of
such entity. 

        (i)    "Preferred
Stock" shall mean shares of Series A Junior Participating Preferred Stock, par value $.01 per share, of the Company, and, to the extent that there is
not a sufficient number of shares of Series A Junior Participating Preferred Stock authorized to permit the full exercise of the Rights, any other series of preferred stock, par value $.01 per
share, of the Company designated for such purpose containing terms substantially similar to the terms of the Series A Junior Participating Preferred Stock. 

        (j)    "Section 11(a)(ii) Event"
shall mean the event described in Section 11(a)(ii) hereof. 

        (k)   "Section 13
Event" shall have the meaning set forth in Section 13(a) hereof. 

        (l)    "Stock
Acquisition Date" shall mean the first date of public announcement (which, for purposes of this definition, shall include, without limitation, a report filed
pursuant to Section 13(d) under the Exchange Act) by the Company or an Acquiring Person that an Acquiring Person has become such. 

        (m)  "Subsidiary"
shall mean, with reference to any Person, any corporation or other entity of which an amount of voting securities sufficient to elect at least a majority of
the directors, or other Persons acting in a capacity similar to directors, of such corporation or other entity is beneficially owned, directly or indirectly, by such Person, or otherwise controlled by
such Person. 

        (n)   "Triggering
Event" shall mean any Section 11(a)(ii) Event or any Section 13 Event. 

        In
addition, for purposes of this Agreement, the following terms have the meanings indicated in specified sections of this Agreement: (i) "Adjustment Shares" shall have the
meaning set forth in Section 11(a)(ii) hereof; (ii) "common stock equivalents" shall have the meaning set forth in Section 11(a)(iii) hereof; (iii) "current
market price" shall have the meaning set forth in Section 11(d) hereof; (iv) "Current Value" shall have the meaning set forth in Section 11(a)(iii) hereof;
(v) "Distribution Date" shall have the meaning set forth in Section 3(a) hereof; (vi) "equivalent preferred stock" shall have the meaning set forth in Section 11(b) hereof;
(vii) "Exchange Ratio" shall have the meaning set forth in Section 24(a) hereof; (viii) "Expiration Date" shall have the meaning set forth in Section 7(a) hereof;
(ix) "Final Expiration Date" shall have the meaning set forth in Section 7(a) hereof; (x) "Nasdaq" shall have the meaning set forth in Section 11(d)(i) hereof;
(xi) "Principal Party" shall have the meaning set forth in Section 13(b) hereof; (xii) "Purchase Price" shall have the meaning set forth in Section 4(a);
(xiii) "Record Date" shall have the meaning set forth in the recitals hereof; (xiv) "Redemption Price" shall have the meaning set forth in Section 23(a) hereof;
(xv) "Rights" shall have the meaning set forth in the recitals hereof; (xvi) "Rights Certificates" shall have the meaning set forth in Section 3(a) hereof;
(xvii) "Section 11(a)(ii) Trigger Date" shall have the meaning set forth in Section 11(a)(iii) hereof; (xviii) "Spread" shall have the meaning set 

3

 

forth
in Section 11(a)(iii) hereof; (xix) "Substitution Period" shall have the meaning set forth in Section 11(a)(iii) hereof; (xx) "Summary of Rights" shall
have the meaning set forth in Section 3(b) hereof; and (xxi) "Trading Day" shall have the meaning set forth in Section 11(d)(i) hereof. 

        Section 2.    Appointment of Rights Agent.    The Company hereby appoints the Rights Agent to act as agent for
the Company in accordance with the terms and conditions hereof, and the Rights Agent hereby accepts such appointment. The Company may from time to time appoint such co-Rights Agents as it
may deem necessary or desirable upon ten (10) days' prior written notice to the Rights Agent. The Rights Agent shall have no duty to supervise, and shall in no event be liable for the acts or
omissions of any such co-Rights Agent. 

        Section 3.    Issue of Rights Certificates.    

        (a)   Until
the earlier of (i) the Close of Business on the tenth day after the Stock Acquisition Date (or, if the tenth day after the Stock Acquisition Date occurs
before the Record Date, the Close of Business on the Record Date) or (ii) the Close of Business on the tenth Business Day (or such later date as may be determined by action of the Board of
Directors of the Company prior to such time as any Person becomes an Acquiring Person) after the date that a tender or exchange offer by any Person (other than the Company, any Subsidiary of the
Company, any employee benefit plan of the Company or of any Subsidiary of the Company, or any Person organized, appointed or established by the Company for or pursuant to the terms of any such plan)
is first published or sent or given within the meaning of Rule 14d-2(a) of the General Rules and Regulations under the Exchange Act, if upon consummation thereof, such Person would
be the Beneficial Owner of 15% or more of the shares of Common Stock then outstanding, (the earlier of (i) and (ii) being herein referred to as the "Distribution Date"), (x) the
Rights will be evidenced (subject to the provisions of paragraph (b) of this Section 3) by the certificates for the Common Stock registered in the names of the holders of the Common
Stock (which certificates for Common Stock shall be deemed also to be certificates for Rights) and not by separate certificates and (y) the Rights will be transferable only in connection with
the transfer of the underlying shares of Common Stock (including a transfer to the Company). The Company shall give the Rights Agent prompt written notice of the Distribution Date. As soon as
practicable after the Distribution Date, and receipt of written notice of the Distribution Date from the Company, the Rights Agent will, at the Company's expense, send by first-class, insured, postage
prepaid mail, to each record holder of the Common Stock as of the Close of Business on the Distribution Date, at the address of such holder shown on the records of the Company, one or more Rights
certificates, in substantially the form of Exhibit B hereto (the "Rights Certificates"), evidencing one Right for each share of Common Stock so held, subject to adjustment as provided herein.
In the event that an adjustment in the number of Rights per share of Common Stock has been made pursuant to Section 11(p) hereof, at the time of distribution of the Rights Certificates, the
Company shall make the necessary and appropriate rounding adjustments (in accordance with Section 14(a) hereof) so that Rights Certificates representing only whole numbers of Rights are
distributed and cash is paid in lieu of any fractional Rights. As of and after the Distribution Date, the Rights will be evidenced solely by such Rights Certificates. 

        (b)   As
promptly as practicable following the Record Date, the Company will send a copy of a Summary of Rights to Purchase Preferred Stock, in substantially the form attached
hereto as Exhibit C (the "Summary of Rights"), by first-class, postage prepaid mail, to each record holder of the Common Stock as of the Close of Business on the Record Date, at the address of
such holder shown on the records of the Company. With respect to certificates for the Common Stock outstanding as of the Record Date, until the Distribution Date, the Rights will be evidenced by such
certificates registered in the names of the holders thereof together with a copy of the Summary of Rights attached thereto. Until the earlier of the Distribution Date or the Expiration Date, the
surrender for transfer of any certificate representing shares of Common Stock in respect of which Rights have been issued, with or 

4

 

without
a copy of the Summary of Rights attached thereto, shall also constitute the transfer of the Rights associated with such shares of Common Stock. 

        (c)   Rights
shall be issued in respect of all shares of Common Stock which are issued after the Record Date but prior to the earlier of the Distribution Date or the
Expiration Date or, in certain circumstances provided in Section 22 hereof, after the Distribution Date. Certificates representing such shares of Common Stock shall also be deemed to be
certificates for Rights, and shall bear a legend substantially in the following form: 

        This
certificate also evidences and entitles the holder hereof to certain rights as set forth in the Rights Agreement between Edwards Lifesciences Corporation (the "Company") and
Equiserve Trust Company, N.A. (the "Rights Agent") dated as of March 31, 2000 (the "Rights Agreement"), the terms of which are hereby incorporated herein by reference and a copy of which is on
file at the principal offices of the Company. Under certain circumstances, as set forth in the Rights Agreement, such Rights will be evidenced by separate certificates and will no longer be evidenced
by this certificate. The Company will mail to the holder of this certificate a copy of the Rights Agreement, as in effect on the date of mailing, without charge promptly after receipt of a written
request therefor. Under certain circumstances set forth in the Rights Agreement, Rights issued to, or held by, any Person who is, was or becomes an Acquiring Person or any Affiliate or Associate
thereof (as such terms are defined in the Rights Agreement), whether currently held by or on behalf of such Person or by any subsequent holder, may become null and void. 

With
respect to such certificates containing the foregoing legend, until the earlier of the Distribution Date or the Expiration Date, the Rights associated with the Common Stock represented by such
certificates shall be evidenced by such certificates alone and registered holders of Common Stock shall also be the registered holders of the associated Rights, and the surrender for transfer of any
of such certificates shall also constitute the transfer of the Rights associated with the Common Stock represented by such certificates. In the event the Company purchases or acquires any shares of
its Common Stock after the Record Date but prior to the Distribution Date, any Rights associated with such shares shall be deemed cancelled and retired so that the Company shall not be entitled to
exercise any Rights associated with shares of Common Stock that are not outstanding. 

        Section 4.    Form of Rights Certificates.    

        (a)   The
Rights Certificates (and the forms of election to purchase and of assignment to be printed on the reverse thereof) shall each be substantially in the form set forth
in Exhibit B hereto and may have such marks of identification or designation and such legends, summaries or endorsements printed thereon as the Company may deem appropriate and as are not
inconsistent with the provisions of this Agreement, or as may be required to comply with any applicable law or with any rule or regulation made pursuant thereto or with any rule or regulation of any
stock exchange on which the Rights may from time to time be listed, or to conform to usage. The Rights Certificates shall be in a machine printable format reasonably satisfactory to the Rights Agent.
Subject to the provisions of Section 11 and Section 22 hereof, the Rights Certificates, whenever distributed, shall be dated as of the Record Date or, in the case of Rights with respect
to shares of Common Stock issued or becoming outstanding after the Record Date, the same date as the stock certificate evidencing such shares, shall show the date of countersignature, and on their
face shall entitle the holders thereof to purchase such number of one one-hundredths of a share of Preferred Stock as shall be set forth therein at the price set forth therein (such
exercise price per one one-hundredth of a share, the "Purchase Price"), but the amount and type of securities purchasable upon the exercise of each Right and the Purchase Price thereof
shall be subject to adjustment from time to time as provided in Sections 11 and 13(a) hereof. 

        (b)   Any
Rights Certificate issued pursuant to Section 3(a) or Section 22 hereof that represents Rights beneficially owned by any Person known to be:
(i) an Acquiring Person or any Associate or Affiliate of an Acquiring Person, (ii) a transferee of an Acquiring Person (or of any such Associate or 

5

 

Affiliate)
who becomes a transferee after the Acquiring Person becomes such, or (iii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee prior
to or concurrently with the Acquiring Person becoming such and receives such Rights pursuant to either (A) a transfer (whether or not for consideration) from the Acquiring Person to holders of
equity interests in such Acquiring Person or to any Person with whom such Acquiring Person has any continuing agreement, arrangement or understanding regarding the transferred Rights or (B) a
transfer which the Board of Directors of the Company has determined is part of a plan, arrangement or understanding which has as a primary purpose or effect avoidance of Section 7(e) hereof,
and any Rights Certificate issued pursuant to Section 6 or Section 11 hereof upon transfer, exchange, replacement or adjustment of any other Rights Certificate referred to in this
sentence, shall contain (to the extent feasible) the following legend: 

The
Rights represented by this Rights Certificate are or were beneficially owned by a Person who was or became an Acquiring Person or an Affiliate or Associate of an Acquiring Person (as such terms
are defined in the Rights Agreement). Accordingly, this Rights Certificate and the Rights represented hereby may become null and void in the circumstances specified in Section 7(e) of such
Agreement. 

        The
Company shall instruct the Rights Agent in writing of the Rights which should be so legended. 

        Section 5.    Countersignature and Registration.    

        (a)   The
Rights Certificates shall be executed on behalf of the Company by its Chairman of the Board, its Chief Executive Officer, its President or any Vice President, either
manually or by facsimile signature, and shall have affixed thereto the Company's seal or a facsimile thereof which shall be attested by the Secretary or an Assistant Secretary of the Company, either
manually or by facsimile signature. The Rights Certificates shall be countersigned manually by the Rights Agent and shall not be valid for any purpose unless so countersigned. In case any officer of
the Company who shall have signed any of the Rights Certificates shall cease to be such officer of the Company before countersignature by the Rights Agent and issuance and delivery by the Company,
such Rights Certificates, nevertheless, may be countersigned by the Rights Agent and issued and delivered by the Company with the same force and effect as though the person who signed such Rights
Certificates had not ceased to be such officer of the Company; and any Rights Certificates may be signed on behalf of the Company by any person who, at the actual date of the execution of such Rights
Certificate, shall be a proper officer of the Company to sign such Rights Certificate, although at the date of the execution of this Rights Agreement any such person was not such an officer. 

        (b)   Following
the Distribution Date, the Rights Agent will keep or cause to be kept, at its principal office or offices designated as the appropriate place for surrender of
Rights Certificates upon exercise or transfer, books for registration and transfer of the Rights Certificates issued hereunder. Such books shall show the names and addresses of the respective holders
of the Rights Certificates, the number of Rights evidenced on its face by each of the Rights Certificates and the certificate number and the date of each of the Rights Certificates. 

        Section 6.    Transfer, Split Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights
Certificates.    

        (a)   Subject
to the provisions of Section 4(b), Section 7(e) and Section 14 hereof, at any time after the Close of Business on the Distribution Date, and
at or prior to the Close of Business on the Expiration Date, any Rights Certificate or Certificates (other than Rights Certificates representing Rights that have become null and void pursuant to
Section 7(e) or that have been exchanged pursuant to Section 24 hereof) may be transferred, split up, combined or exchanged for another Rights Certificate or Certificates, entitling the
registered holder to purchase a like number of one 

6

 

one-hundredths
of a share of Preferred Stock (or, following a Triggering Event, Common Stock, other securities, cash or other assets, as the case may be) as the Rights Certificate or
Certificates surrendered then entitled such holder (or former holder in the case of a transfer) to purchase. Any registered holder desiring to transfer, split up, combine or exchange any Rights
Certificate or Certificates shall make such request in writing delivered to the Rights Agent, and shall surrender the Rights Certificate or Certificates to be transferred, split up, combined or
exchanged at the principal office or offices of the Rights Agent designated for such purpose. Neither the Rights Agent nor the Company shall be obligated to take any action whatsoever with respect to
the transfer of any such surrendered Rights Certificate until the registered holder shall have completed and signed the certificate contained in the form of assignment on the reverse side of such
Rights Certificate and shall have provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the Company or the
Rights Agent shall reasonably request. Thereupon the Rights Agent shall, subject to Section 4(b), Section 7(e), Section 14 and Section 24 hereof, countersign and deliver to
the Person entitled thereto a Rights Certificate or Rights Certificates, as the case may be, as so requested. The Company may require payment by the holders of Rights of a sum sufficient to cover any
tax or governmental charge that may be imposed in connection with any transfer, split up, combination or exchange of Rights Certificates. 

        (b)   Upon
receipt by the Company and the Rights Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation of a Rights Certificate, and,
in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to them, and reimbursement to the Company and the Rights Agent of all reasonable expenses incidental thereto,
and upon surrender to the Rights Agent and cancellation of the Rights Certificates if mutilated, the Company will execute and deliver a new Rights Certificate of like tenor to the Rights Agent for
countersignature and delivery to the registered owner in lieu of the Rights Certificate so lost, stolen, destroyed or mutilated. 

        Section 7.    Exercise of Rights; Purchase Price; Expiration Date of Rights.    

        (a)   Subject
to Section 7(e) hereof, the registered holder of any Rights Certificate may exercise the Rights evidenced thereby (except as otherwise provided herein
including, without limitation, the restrictions on exercisability set forth in Section 9(c), Section 11(a)(iii) and Section 23(a) hereof) in whole or in part at any time
after the Distribution Date upon surrender of the Rights Certificate, with the form of election to purchase and the certificate on the reverse side thereof duly executed, to the Rights Agent at the
principal office or offices of the Rights Agent designated for such purpose, together with payment of the aggregate Purchase Price with respect to the total number of one one-hundredths of
a share of Preferred Stock (or other securities, cash or other assets, as the case may be) as to which such surrendered Rights are then exercisable, at or prior to the earliest of (i) the Close
of Business on March 31, 2010 (the "Final Expiration Date"), (ii) the time at which the Rights are redeemed as provided in Section 23 hereof or (iii) the time at which such
Rights are exchanged pursuant to Section 24 hereof (the earliest of (i), (ii) and (iii) being herein referred to as the "Expiration Date"). Notwithstanding anything in this
Agreement to the contrary, the Rights shall not be exercisable prior to the Distribution Date. 

        (b)   The
Purchase Price for each one one-hundredth of a share of Preferred Stock pursuant to the exercise of a Right shall initially be $80, and shall be subject
to adjustment from time to time as provided in Sections 11 and 13(a) hereof and shall be payable in accordance with paragraph (c) below. 

        (c)   Upon
receipt of a Rights Certificate representing exercisable Rights, with the form of election to purchase and the certificate duly executed, accompanied by payment,
with respect to each Right so exercised, of the Purchase Price per one one-hundredth of a share of Preferred Stock (or other securities, cash or other assets, as the case may be) to be
purchased as set forth below and an amount equal to any applicable transfer tax required to be paid by the holder of the Rights Certificate in accordance with Section 9(e) hereof, the Rights
Agent shall, subject to Section 20(k) hereof, thereupon 

7

 

promptly
(i) (A) requisition from any transfer agent of the shares of Preferred Stock (or make available, if the Rights Agent is the transfer agent for such shares) certificates for the total
number of one one-hundredths of a share of Preferred Stock to be purchased and the Company hereby irrevocably authorizes its transfer agent to comply with all such requests, or
(B) if the Company shall have elected to deposit the total number of shares of Preferred Stock issuable upon exercise of the Rights hereunder with a depositary agent, requisition from the
depositary agent depositary receipts representing such number of one one-hundredths of a share of Preferred Stock as are to be purchased (in which case certificates for the shares of
Preferred Stock represented by such receipts shall be deposited by the transfer agent with the depositary agent) and the Company will direct the depositary agent to comply with such request,
(ii) requisition from the Company the amount of cash, if any, to be paid in lieu of fractional shares in accordance with Section 14 hereof, (iii) after receipt of such
certificates or depositary receipts, cause the same to be delivered to or upon the order of the registered holder of such Rights Certificate, registered in such name or names as may be designated by
such holder, and (iv) after receipt thereof, deliver such cash, if any, to or upon the order of the registered holder of such Rights Certificate. The payment of the Purchase Price (as such
amount may be reduced pursuant to Section 11(a)(iii) hereof) shall be made in cash or by certified bank check or bank draft payable to the order of the Company. In the event that the
Company is obligated to issue other securities (including Common Stock) of the Company, pay cash and/or distribute other property pursuant to Section 11(a) hereof, the Company will make all
arrangements necessary so that such other securities, cash and/or other property are available for distribution by the Rights Agent, if and when necessary to comply with the terms of this Agreement.
The Company reserves the right to require prior to the occurrence of a Triggering Event that, upon any exercise of Rights, a number of Rights be exercised so that only whole shares of Preferred Stock
would be issued. 

        (d)   In
case the registered holder of any Rights Certificate shall exercise less than all the Rights evidenced thereby, a new Rights Certificate evidencing Rights equivalent
to the Rights remaining unexercised shall be issued by the Rights Agent and delivered to, or upon the order of, the registered holder of such Rights Certificate, registered in such name or names as
may be designated by such holder, subject to the provisions of Section 14 hereof. 

        (e)   Notwithstanding
anything in this Agreement to the contrary, from and after the first occurrence of a Section 11(a) (ii) Event, any Rights beneficially
owned by (i) an Acquiring Person or an Associate or Affiliate of an Acquiring Person, (ii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a
transferee after the Acquiring Person becomes such, or (iii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee prior to or concurrently with
the Acquiring Person becoming such and receives such Rights pursuant to either (A) a transfer (whether or not for consideration) from the Acquiring Person (or any Affiliate or Associate
thereof) to holders of equity interests in such Acquiring Person (or any Affiliate or Associate thereof) or to any Person with whom the Acquiring Person (or any Affiliate or Associate thereof) has any
continuing agreement, arrangement or understanding regarding the transferred Rights or (B) a transfer which the Board of Directors of the Company has determined is part of a plan, arrangement
or understanding which has as a primary purpose or effect the avoidance of this Section 7(e), shall become null and void without any further action and no holder of such Rights shall have any
rights whatsoever with respect to such Rights, whether under any provision of this Agreement or otherwise. The Company shall use all reasonable efforts to ensure that the provisions of this
Section 7(e) and Section 4(b) hereof are complied with, but neither the Company nor the Rights Agent shall have any liability to any holder of Rights Certificates or other Person as a
result of the Company's failure to make any determinations with respect to an Acquiring Person or any of its Affiliates, Associates or transferees hereunder. The Rights Agent will endeavor to comply
with the provisions of this Section 7(e) to the extent it has received instructions from the Company concerning such matters. 

8

 

        (f)    Notwithstanding
anything in this Agreement to the contrary, neither the Rights Agent nor the Company shall be obligated to undertake any action with respect to a
registered holder upon the occurrence of any purported exercise as set forth in this Section 7 unless such registered holder shall have (i) properly completed and signed the certificate
contained in the form of election to purchase set forth on the reverse side of the Rights Certificate surrendered for such exercise, and (ii) provided such additional evidence of the identity
of the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the Company or the Rights Agent shall reasonably request. 

        Section 8.    Cancellation and Destruction of Rights Certificates.    

        All
Rights Certificates surrendered for the purpose of exercise, transfer, split up, combination or exchange shall, if surrendered to the Company or any of its agents, be delivered to
the Rights Agent for cancellation or in cancelled form, or, if surrendered to the Rights Agent, shall be cancelled by it, and no Rights Certificates shall be issued in lieu thereof, except as
expressly permitted by any of the provisions of this Agreement. The Company shall deliver to the Rights Agent for cancellation and retirement, and the Rights Agent shall so cancel and retire, any
other Rights Certificates purchased or acquired by the Company otherwise than upon the exercise thereof. The Rights Agent shall deliver all cancelled Rights Certificates to the Company, or shall, at
the written request of the Company, destroy such cancelled Rights Certificates, and in such case shall deliver a certificate of destruction thereof to the Company. 

        Section 9.    Reservation and Availability of Capital Stock.    

        (a)   The
Company covenants and agrees that it will cause to be reserved and kept available out of its authorized and unissued shares of Preferred Stock (and, following the
occurrence of a Triggering Event, out of its authorized and unissued shares of Common Stock and/or other securities) the number of shares of Preferred Stock (and, following the occurrence of a
Triggering Event, Common Stock and/or other securities) that, as provided in this Agreement, including Section 11(a)(iii) hereof, will be sufficient to permit the exercise in full of all
outstanding Rights. 

        (b)   So
long as the shares of Preferred Stock (and, following the occurrence of a Triggering Event, Common Stock and/or other securities) issuable and deliverable upon the
exercise of the Rights may be listed on any national securities exchange or The Nasdaq National Market (or any successor), the Company shall use its reasonable best efforts to cause, from and after
such time as the Rights become exercisable, all shares reserved for such issuance to be listed on such exchange or The Nasdaq National Market (or any successor), upon official notice of issuance upon
such exercise. 

        (c)   The
Company shall use its reasonable best efforts to (i) file, as soon as practicable following the earliest date after the first occurrence of a
Section 11(a)(ii) Event on which the consideration to be delivered by the Company upon exercise of the Rights has been determined in accordance with
Section 11(a)(iii) hereof, a registration statement under the Act with respect to the securities purchasable upon exercise of the Rights on an appropriate form, (ii) cause such
registration statement to become effective as soon as practicable after such filing, and (iii) cause such registration statement to remain effective (with a prospectus at all times meeting the
requirements of the Act) until the earlier of (A) the date as of which the Rights are no longer exercisable for such securities, and (B) the date of the expiration of the Rights. The
Company will also take such action as may be appropriate under, or to ensure compliance with, the securities or "blue sky" laws of the various states in connection with the exercisability of the
Rights. The Company may temporarily suspend, for a period of time not to exceed ninety (90) days after the date set forth in clause (i) of the first sentence of this Section 9(c),
the exercisability of the Rights in order to prepare and file such registration statement and permit it to become effective. Upon any such suspension, the Company shall issue a public announcement, in
each case with simultaneous written notice to the Rights Agent, stating that the exercisability of the Rights has been temporarily suspended, as well as a public announcement at such time as the
suspension is no longer in effect. In addition, if the Company shall determine that a 

9

 

registration
statement is required following the Distribution Date, and a Section 11(a)(ii) Event has not occurred, the Company may temporarily suspend the exercisability of Rights until
such time as a registration statement has been declared effective. Notwithstanding any provision of this Agreement to the contrary, the Rights shall not be exercisable in any jurisdiction if the
requisite qualification or exemption in such jurisdiction shall not have been obtained, the exercise thereof shall not be permitted under applicable law or a registration statement shall not have been
declared effective. 

        (d)   The
Company covenants and agrees that it will take all such actions as may be necessary to ensure that all one one-hundredths of a share of Preferred Stock
(and, following the occurrence of a Triggering Event, Common Stock and/or other securities) delivered upon exercise of Rights shall, at the time of delivery of the certificates for such shares
(subject to payment of the Purchase Price), be duly and validly authorized and issued and fully paid and nonassessable. 

        (e)   The
Company further covenants and agrees that it will pay, when due and payable, any and all transfer taxes and governmental charges which may be payable in respect of
the issuance or delivery of the Rights Certificates and of any certificates for a number of one one-hundredths of a share of Preferred Stock (or Common Stock and/or other securities, as
the case may be) upon the exercise of Rights. The Company shall not, however, be required to pay any transfer tax which may be payable in respect of any transfer or delivery of Rights Certificates to
a Person other than, or the issuance or delivery of a number of one one-hundredths of a share of Preferred Stock (or Common Stock and/or other securities, as the case may be) in respect of
a name other than that of, the registered holder of the Rights Certificates evidencing Rights surrendered for exercise or to issue or deliver any certificates for a number of one
one-hundredths of a share of Preferred Stock (or Common Stock and/or other securities, as the case may be) in a name other than that of the registered holder upon the exercise of any
Rights until such tax shall have been paid (any such tax being payable by the holder of such Rights Certificate at the time of surrender) or until it has been established to the Company's satisfaction
that no such tax is due. 

        Section 10.    Preferred Stock Record Date.    

        Each
Person in whose name any certificate for a number of one one-hundredths of a share of Preferred Stock (or Common Stock and/or other securities, as the case may be) is
issued upon the exercise of Rights shall for all purposes be deemed to have become the holder of record of such fractional shares of Preferred Stock (or Common Stock and/or other securities, as the
case may be) represented thereby on, and such certificate shall be dated, the date upon which the Rights Certificate evidencing such Rights was duly surrendered and payment of the Purchase Price (and
all applicable transfer taxes) was made; provided, however, that if the date of such surrender and
payment is a date upon which the Preferred Stock (or Common Stock and/or other securities, as the case may be) transfer books of the Company are closed, such Person shall be deemed to have become the
record holder of such shares (fractional or otherwise) on, and such certificate shall be dated, the next succeeding Business Day on which the Preferred Stock (or Common Stock and/or other securities,
as the case may be) transfer books of the Company are open. Prior to the exercise of the Rights evidenced thereby, the holder of a Rights Certificate shall not be entitled to any rights of a
stockholder of the Company with respect to shares or other securities for which the Rights shall be exercisable, including, without limitation, the right to vote, to receive dividends or other
distributions or to exercise any preemptive rights, and shall not be entitled to receive any notice of any proceedings of the Company, except as provided herein. 

10

   
        Section 11.    Adjustment of Purchase Price, Number and Kind of Shares or Number of Rights.    

        The
Purchase Price, the number and kind of shares covered by each Right and the number of Rights outstanding are subject to adjustment from time to time as provided in this
Section 11. 

        (a)   (i) In
the event the Company shall at any time after the date of this Agreement (A) declare a dividend on the Preferred Stock payable in shares of
Preferred Stock, (B) subdivide the outstanding Preferred Stock, (C) combine the outstanding Preferred Stock into a smaller number of shares, or (D) issue any shares of its capital
stock in a reclassification of the Preferred Stock (including any such reclassification in connection with a consolidation or merger in which the Company is the continuing or surviving corporation),
except as otherwise provided in this Section 11(a) and Section 7(e) hereof, the Purchase Price in effect at the time of the record date for such dividend or of the effective date of such
subdivision, combination or reclassification, and the number and kind of shares of Preferred Stock or capital stock, as the case may be, issuable on such date, shall be proportionately adjusted so
that the holder of any Right exercised after such time shall be entitled to receive, upon payment of the Purchase Price then in effect, the aggregate number and kind of shares of Preferred Stock or
capital stock, as the case may be, which, if such Right had been exercised immediately prior to such date and at a time when the Preferred Stock transfer books of the Company were open, such holder
would have owned upon such exercise and been entitled to receive by virtue of such dividend, subdivision, combination or reclassification. If an event occurs which would require an adjustment under
both this Section 11(a)(i) and Section 11(a)(ii) hereof, the adjustment provided for in this Section 11(a)(i) shall be in addition to, and shall be made prior
to, any adjustment required pursuant to Section 11(a)(ii) hereof. 

         (ii)  Subject
to Section 24 hereof, in the event any Person at any time after the Rights Dividend Declaration Date becomes an Acquiring Person, then each holder of a
Right (except as provided below and in Section 7(e) hereof) shall thereafter have the right to receive, upon exercise thereof at a price equal to the then current Purchase Price in accordance
with the terms of this Agreement, in lieu of a number of one one-hundredths of a share of Preferred Stock, such number of shares of Common Stock of the Company as shall equal the result
obtained by (x) multiplying the then current Purchase Price by the then number of one one-hundredths of a share of Preferred Stock for which a Right was exercisable immediately
prior to the first occurrence of a Section 11(a)(ii) Event and (y) dividing that product (which, following such first occurrence shall thereafter be referred to as the "Purchase
Price" for each Right and for all purposes of this Agreement) by 50% of the current market price (determined pursuant to Section 11(d) hereof) per share of Common Stock on the date of such
first occurrence (such number of shares, the "Adjustment Shares"). 

        (iii)  In
the event that the number of shares of Common Stock which are authorized by the Company's certificate of incorporation, as amended, but not outstanding or reserved
for issuance for purposes other than upon exercise of the Rights, is not sufficient to permit the exercise in full of the Rights in accordance with the foregoing subparagraph (ii) of this
Section 11(a), the Company shall: (A) determine the value of the Adjustment Shares issuable upon the exercise of a Right (the "Current Value"), and (B) with respect to each Right,
make adequate provision to substitute for the Adjustment Shares, upon payment of the applicable Purchase Price, (1) cash, (2) a reduction in the Purchase Price, (3) Common Stock
or other equity securities of the Company (including, without limitation, shares, or units of shares, of preferred stock, such as the Preferred Stock, which the Board of Directors of the Company has
deemed to have substantially the same value or economic rights as shares of Common Stock (such shares of preferred stock, "common stock equivalents")), (4) debt securities of the Company,
(5) other assets, or (6) any combination of the foregoing, having an aggregate value equal to the Current Value (less the amount of any reduction in the Purchase Price), where such
aggregate value has been determined by the Board of Directors of the Company based upon the advice of a nationally recognized 

11

 

investment
banking firm selected by the Board of Directors of the Company; provided, however, if the
Company shall not have made adequate provision to deliver value pursuant to clause (B) above within thirty (30) days following the later of (x) the first occurrence of a
Section 11(a)(ii) Event and (y) the date on which the Company's right of redemption pursuant to Section 23(a) expires (the later of (x) and (y) being referred
to herein as the "Section 11(a)(ii) Trigger Date"), then the Company shall be obligated to deliver, upon the surrender for exercise of a Right and without requiring payment of the
Purchase Price, shares of Common Stock (to the extent available) and then, if necessary, cash, which shares and/or cash have an aggregate value equal to the Spread. For purposes of the preceding
sentence, the term "Spread" shall mean the excess of (i) the Current Value over (ii) the Purchase Price. If the Board of Directors of the Company shall determine in good faith that it is
likely that sufficient additional shares of Common Stock could be authorized for issuance upon exercise in full of the Rights, the thirty (30) day period set forth above may be extended to the
extent necessary, but not more than ninety (90) days after the Section 11(a)(ii) Trigger Date, in order that the Company may seek stockholder approval for the authorization of
such additional shares (such thirty (30) day period, as it may be extended, the "Substitution Period"). To the extent that action is to be taken pursuant to the first and/or third sentences of
this Section 11(a)(iii), the Company (x) shall provide, subject to Section 7(e) hereof, that such action shall apply uniformly to all outstanding Rights, and (y) may
suspend the exercisability of the Rights until the expiration of the Substitution Period in order to seek such stockholder approval for such authorization of additional shares and/or to decide the
appropriate form of distribution to be made pursuant to such first sentence and to determine the value thereof. In the event of any such suspension, the Company shall issue a public announcement
stating that the exercisability of the Rights has been temporarily suspended, as well as a public announcement at such time as the suspension is no longer in effect. For purposes of this
Section 11(a)(iii), the value of each Adjustment Share shall be the current market price (as determined pursuant to Section 11(d) hereof) per share of Common Stock on the
Section 11(a)(ii) Trigger Date and the value of any "common stock equivalent" shall be deemed to equal the current market price (as determined pursuant to Section 11(d) hereof)
per share of the Common Stock on such date. 

        (b)   In
case the Company shall fix a record date for the issuance of rights (other than the Rights), options or warrants to all holders of Preferred Stock entitling them to
subscribe for or purchase (for a period expiring within forty-five (45) calendar days after such record date) Preferred Stock (or shares having the same rights, privileges and
preferences as the shares of Preferred Stock ("equivalent preferred stock")) or securities convertible into Preferred Stock or equivalent preferred stock at a price per share of Preferred Stock or per
share of equivalent preferred stock (or having a conversion price per share, if a security convertible into Preferred Stock or equivalent preferred stock) less than the current market price (as
determined pursuant to Section 11(d) hereof) per share of Preferred Stock on such record date, the Purchase Price to be in effect after such record date shall be determined by multiplying the
Purchase Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the number of shares of Preferred Stock outstanding on such record date, plus the number
of shares of Preferred Stock which the aggregate offering price of the total number of shares of Preferred Stock and/or equivalent preferred stock so to be offered (and/or the aggregate initial
conversion price of the convertible securities so to be offered) would purchase at such current market price, and the denominator of which shall be the number of shares of Preferred Stock outstanding
on such record date, plus the number of additional shares of Preferred Stock and/or equivalent preferred stock to be offered for subscription or purchase (or into which the convertible securities so
to be offered are initially convertible). In case such subscription price may be paid by delivery of consideration part or all of which may be in a form other than cash, the value of such
consideration shall be as determined in good faith by the Board of Directors of the Company, whose determination shall be described in a statement filed with the Rights Agent and shall be binding on
the 

12

 

Rights
Agent and the holders of the Rights. Shares of Preferred Stock owned by or held for the account of the Company shall not be deemed outstanding for the purpose of any such computation. Such
adjustment shall be made successively whenever such a record date is fixed, and in the event that such rights, options or warrants are not so issued, the Purchase Price shall be adjusted to be the
Purchase Price which would then be in effect if such record date had not been fixed. 

        (c)   In
case the Company shall fix a record date for the making of a distribution to all holders of Preferred Stock (including any such distribution made in connection with a
consolidation or merger in which the Company is the continuing corporation) of evidences of indebtedness, cash (other than a regular periodic cash dividend out of the earnings or retained earnings of
the Company), assets (other than a dividend payable in Preferred Stock, but including any dividend payable in stock other than Preferred Stock) or subscription rights or warrants (excluding those
referred to in Section 11(b) hereof), the Purchase Price to be in effect after such record date shall be determined by multiplying the Purchase Price in effect immediately prior to such record
date by a fraction, the numerator of which shall be the current market price (as determined pursuant to Section 11(d) hereof) per share of Preferred Stock on such record date, less the fair
market value (as determined in good faith by the Board of Directors of the Company, whose determination shall be described in a statement filed with the Rights Agent and shall be binding on the Rights
Agent and the holders of the Rights) of the portion of the cash, assets or evidences of indebtedness so to be distributed or of such subscription rights or warrants applicable to a share of Preferred
Stock and the denominator of which shall be such current market price (as determined pursuant to Section 11(d) hereof) per share of Preferred Stock. Such adjustments shall be made successively
whenever such a record date is fixed, and in the event that such distribution is not so made, the Purchase Price shall be adjusted to be the Purchase Price which would have been in effect if such
record date had not been fixed. 

        (d)   (i) For
the purpose of any computation hereunder, other than computations made pursuant to Section 11(a)(iii) hereof, the "current market price" per
share of Common Stock on any date shall be deemed to be the average of the daily closing prices per share of such Common Stock for the thirty (30) consecutive Trading Days (as such term is
hereinafter defined) immediately prior to but not including such date, and for purposes of computations made pursuant to Section 11(a)(iii) hereof, the "current market price" per share
of Common Stock on any date shall be deemed to be the average of the daily closing prices per share of such Common Stock for the ten (10) consecutive Trading Days immediately following but not
including such date; provided, however, that in the event that the current market price per share of the
Common Stock is determined during a period following the announcement by the issuer of such Common Stock of (A) a dividend or distribution on such Common Stock payable in shares of such Common
Stock or securities convertible into shares of such Common Stock (other than the Rights), or (B) any subdivision, combination or reclassification of such Common Stock, and the
ex-dividend date for such dividend or distribution, or the record date for such subdivision, combination or reclassification shall not have occurred prior to the commencement of the
requisite thirty (30) Trading Day or ten (10) Trading Day period, as set forth above, then, and in each such case, the "current market price" shall be properly adjusted to take into
account any trading during the period prior to such ex-dividend date or record date. The closing price for each day shall be the last sale price, regular way, or, in case no such sale
takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported in the principal consolidated transaction reporting system with respect to securities
listed or admitted to trading on the New York Stock Exchange or, if the shares of Common Stock are not listed or admitted to trading on the New York Stock Exchange, as reported in the principal
consolidated transaction reporting system with respect to securities listed on the principal national securities exchange on which the shares of Common Stock are listed or admitted to trading or, if
the shares of Common Stock are not listed or admitted to trading on any national securities exchange, the last quoted price or, if not so quoted, the average of the high bid and low asked prices in
the over-the-counter market, as reported by The Nasdaq Stock Market ("Nasdaq") or such other quotation system then in use, or, if on any such date the shares of Common 

13

 

Stock
are not quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in the Common Stock selected by the Board of
Directors of the Company. If on any such date no market maker is making a market in the Common Stock, the fair value of such shares on such date as determined in good faith by the Board of Directors
of the Company shall be used. The term "Trading Day" shall mean a day on which the principal national securities exchange on which the shares of Common Stock are listed or admitted to trading is open
for the transaction of business or, if the shares of Common Stock are not listed or admitted to trading on any national securities exchange, a Business Day. If the Common Stock is not publicly held or
not so listed or traded, "current market price" per share shall mean the fair value per share as determined in good faith by the Board of Directors of the Company, whose determination shall be
described in a statement filed with the Rights Agent and shall be conclusive for all purposes. 

         (ii)  For
the purpose of any computation hereunder, the "current market price" per share of Preferred Stock shall be determined in the same manner as set forth above for the
Common Stock in clause (i) of this Section 11(d) (other than the last sentence thereof). If the current market price per share of Preferred Stock cannot be determined in the manner
provided above, or if the Preferred Stock is not publicly held or listed or traded in a manner described in clause (i) of this Section 11(d), the "current market price" per share of
Preferred Stock shall be conclusively deemed to be an amount equal to 100
(as such number may be appropriately adjusted for such events as stock splits, stock dividends and recapitalizations with respect to the Common Stock occurring after the date of this Agreement)
multiplied by the current market price per share of the Common Stock. If neither the Common Stock nor the Preferred Stock is publicly held or so listed or traded, "current market price" per share of
the Preferred Stock shall mean the fair value per share as determined in good faith by the Board of Directors of the Company, whose determination shall be described in a statement filed with the
Rights Agent and shall be binding on the Rights Agent and the holders of the Rights. For all purposes of this Agreement, the "current market price" of one one-hundredth of a share of
Preferred Stock shall be equal to the "current market price" of one share of Preferred Stock divided by 100. 

        (e)   Anything
herein to the contrary notwithstanding, no adjustment in the Purchase Price shall be required unless such adjustment would require an increase or decrease of at
least one percent (1%) in the Purchase Price; provided, however, that any adjustments which by reason of
this Section 11(e) are not required to be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Section 11 shall be made to the
nearest cent or to the nearest one ten-thousandth of a share of Common Stock or other share or one one-millionth of a share of Preferred Stock, as the case may be.
Notwithstanding the first sentence of this Section 11(e), any adjustment required by this Section 11 shall be made no later than the earlier of (i) three (3) years from the
date of the transaction which mandates such adjustment, or (ii) the Expiration Date. 

        (f)    If
as a result of an adjustment made pursuant to Section 11(a)(ii) or Section 13(a) hereof, the holder of any Right thereafter exercised shall
become entitled to receive any shares of capital stock other than Preferred Stock, thereafter the number of such other shares so receivable upon exercise of any Right and the Purchase Price thereof
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 the Preferred Stock contained in Sections 11(a), (b),
(c), (e), (g), (h), (i), (j), (k) and (m), and the provisions of Sections 7, 9, 10, 13 and 14 hereof with respect to the Preferred Stock shall apply on like terms to any such other shares. 

        (g)   All
Rights originally issued by the Company subsequent to any adjustment made to the Purchase Price hereunder shall evidence the right to purchase, at the adjusted
Purchase Price, the number of one one-hundredths of a share of Preferred Stock purchasable from time to time hereunder upon exercise of the Rights, all subject to further adjustment as
provided herein. 

14

 

        (h)   Unless
the Company shall have exercised its election as provided in Section 11(i), upon each adjustment of the Purchase Price as a result of the calculations made
in Sections 11(b) and (c), each Right outstanding immediately prior to the making of such adjustment shall thereafter evidence the right to purchase, at the adjusted Purchase Price, that number of
one-hundredths of a share of Preferred Stock (calculated to the nearest one-millionth) obtained by (i) multiplying (x) the number of one
one-hundredths of a share covered by a Right immediately prior to this adjustment, by (y) the Purchase Price in effect immediately prior to such adjustment of the Purchase Price,
and (ii) dividing the product so obtained by the Purchase Price in effect immediately after such adjustment of the Purchase Price. 

        (i)    The
Company may elect on or after the date of any adjustment of the Purchase Price to adjust the number of Rights, in lieu of any adjustment in the number of one
one-hundredths of a share of Preferred Stock purchasable upon the exercise of a Right. Each of the Rights outstanding after the adjustment in the number of Rights shall be exercisable for
the number of one one-hundredths of a share of Preferred Stock for which a Right was exercisable immediately prior to such adjustment. Each Right held of record prior to such adjustment of
the number of Rights shall become that number of Rights (calculated to the nearest one-ten-thousandth) obtained by dividing the Purchase Price in effect immediately prior to
adjustment of the Purchase Price by the Purchase Price in effect immediately after adjustment of the Purchase Price. The Company shall make a public announcement of its election to adjust the number
of Rights, indicating the record date for the adjustment, and, if known at the time, the amount of the adjustment to be made. This record date may be the date on which the Purchase Price is adjusted
or any day thereafter, but, if the Rights Certificates have been issued, shall be at least ten (10) days later than the date of the public announcement. If Rights Certificates have been issued,
upon each adjustment of the number of Rights pursuant to this Section 11(i), the Company shall, as promptly as practicable, cause to be distributed to holders of record of Rights Certificates
on such record date Rights Certificates evidencing, subject to Section 14 hereof, the additional Rights to which such holders shall be entitled as a result of such adjustment, or, at the option
of the Company, shall cause to be distributed to such holders of record in substitution and replacement for the Rights Certificates held by such holders prior to the date of adjustment, and upon
surrender thereof, if required by the Company, new Rights Certificates evidencing all the Rights to which such holders shall be entitled after such adjustment. Rights Certificates so to be distributed
shall be issued, executed and countersigned in the manner provided for herein (and may bear, at the option of the Company, the adjusted Purchase Price) and shall be registered in the names of the
holders of record of Rights Certificates on the record date specified in the public announcement. 

        (j)    Irrespective
of any adjustment or change in the Purchase Price or the number of one one-hundredths of a share of Preferred Stock issuable upon the exercise
of the Rights, the Rights Certificates theretofore and thereafter issued may continue to express the Purchase Price per one one-hundredth of a share and the number of one
one-hundredths of a share which were expressed in the initial Rights Certificates issued hereunder. 

        (k)   Before
taking any action that would cause an adjustment reducing the Purchase Price below the then stated value, if any, of the number of one one-hundredths
of a share of Preferred Stock issuable upon exercise of the Rights, the Company shall take any corporate action which may, in the opinion of its counsel, be necessary in order that the Company may
validly and legally issue fully paid and nonassessable shares of Preferred Stock at such adjusted Purchase Price. 

        (l)    In
any case in which this Section 11 shall require that an adjustment in the Purchase Price be made effective as of a record date for a specified event, the
Company may elect to defer until the occurrence of such event the issuance to the holder of any Right exercised after such record date the number of one one-hundredths of a share of
Preferred Stock and other capital stock or securities of the Company, if any, issuable upon such exercise over and above the number of one one-hundredths of a share of Preferred Stock and
other capital stock or securities of the Company, if any, issuable upon 

15

 

such
exercise on the basis of the Purchase Price in effect prior to such adjustment; provided, however,
that the Company shall deliver to such holder a due bill or other appropriate instrument evidencing such holder's right to receive such additional shares (fractional or otherwise) or securities upon
the occurrence of the event requiring such adjustment. 

        (m)  Anything
in this Section 11 to the contrary notwithstanding, the Company shall be entitled to make such reductions in the Purchase Price, in addition to those
adjustments expressly required by this Section 11, as and to the extent that the Board of Directors of the Company, in its good faith judgment, shall determine to be advisable in order that any
(i) consolidation or subdivision of the Preferred Stock, (ii) issuance wholly for cash of any shares of Preferred Stock at less than the current market price, (iii) issuance
wholly for cash of shares of Preferred Stock or securities which by their terms are convertible into or exchangeable for shares of Preferred Stock, (iv) stock dividends or (v) issuance
of rights, options or warrants referred to in this Section 11, hereafter made by the Company to holders of its Preferred Stock shall not be taxable to such stockholders. 

        (n)   The
Company covenants and agrees that it shall not, at any time after the Distribution Date, (i) consolidate with any other Person (other than a Subsidiary of the
Company in a transaction which complies with Section 11(o) hereof), (ii) merge with or into any other Person (other than a Subsidiary of the Company in a transaction which complies with
Section 11(o) hereof), or (iii) sell or transfer (or permit any Subsidiary to sell or transfer), in one transaction, or a series of related transactions, assets, cash flow or earning
power aggregating more than 50% of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to any other Person or Persons (other than the Company and/or any of its
Subsidiaries in one or more transactions each of which complies with Section 11(o) hereof), if (x) at the time of or immediately after such consolidation, merger, sale or transfer there
are any rights, warrants or other instruments or securities outstanding or agreements in effect which would substantially diminish or otherwise eliminate the benefits intended to be afforded by the
Rights or (y) prior to, simultaneously with or immediately after such consolidation, merger, sale or transfer, the stockholders of the Person who constitutes, or would constitute, the
"Principal Party" for purposes of Section 13(a) hereof shall have received a distribution of Rights previously owned by such Person or any of its Affiliates and Associates. 

        (o)   The
Company covenants and agrees that, after the Distribution Date, it will not, except as permitted by Section 23, Section 24 or Section 27 hereof,
take (or permit any Subsidiary to take) any action if at the time such action is taken it is reasonably foreseeable that such action will diminish substantially or otherwise eliminate the benefits
intended to be afforded by the Rights. 

        (p)   In
the event that the Company shall at any time after the Rights Dividend Declaration Date and prior to the Distribution Date (i) declare a dividend on the
outstanding shares of Common Stock payable in shares of Common Stock, (ii) subdivide the outstanding shares of Common Stock, or (iii) combine the outstanding shares of Common Stock into
a smaller number of shares, the number of Rights associated with each share of Common Stock then outstanding, or issued or delivered thereafter but prior to the Distribution Date, shall be
proportionately adjusted so that the number of Rights thereafter associated with each share of Common Stock following any such event shall equal the result obtained by multiplying the number of Rights
associated with each share of Common Stock immediately prior to such event by a fraction the numerator of which shall be the total number of shares of Common Stock outstanding immediately prior to the
occurrence of the event and the denominator of which shall be the total number of shares of Common Stock outstanding immediately following the occurrence of such event. 

        Section 12.    Certificate of Adjusted Purchase Price or Number of Shares.    

        Whenever
an adjustment is made as provided in Section 11 or Section 13 hereof, the Company shall (a) promptly prepare a certificate setting forth such adjustment and
a brief statement of the facts and computations accounting for such adjustment, (b) promptly file with the Rights Agent, and with 

16

 

each
transfer agent for the Preferred Stock and the Common Stock, a copy of such certificate, and (c) mail a brief summary thereof to each holder of a Rights Certificate (or, if prior to the
Distribution Date, to each holder of a certificate representing shares of Common Stock) in accordance with Section 26 hereof. The Rights Agent shall be fully protected in relying on any such
certificate and on any adjustment therein contained and shall not be deemed to have knowledge of such adjustment unless and until it shall have received such certificate. Notwithstanding the foregoing
sentence, the failure of the Company to make such certificate or give such notice shall not affect the validity or the force or effect of the requirement for such adjustment. Any adjustment to be made
pursuant to Section 11 or Section 13 shall be effective as of the date of the event giving rise to such adjustment. 

        Section 13.    Consolidation, Merger or Sale or Transfer of Assets, Cash Flow or Earning Power.    

        (a)   In
the event that, following the Stock Acquisition Date, directly or indirectly, (x) the Company shall consolidate with, or merge with and into, any other Person
(other than a Subsidiary of the Company in a transaction which complies with Section 11(o) hereof), and the Company shall not be the continuing or surviving corporation of such consolidation or
merger, or the Company shall effect a statutory share exchange with the outstanding shares of Common Stock being exchanged for stock or other securities of any Person, cash or property, (y) any
Person (other than a Subsidiary of the Company in a transaction which complies with Section 11(o) hereof) shall consolidate with, or merge with or into, the Company, and the Company shall be
the continuing or surviving corporation of such consolidation or merger and, in connection with such consolidation or merger, all or part of the outstanding shares of Common Stock shall be changed
into or exchanged for stock or other securities of any other Person or cash or any other property, or (z) the Company shall sell or otherwise transfer (or one or more of its Subsidiaries shall
sell or otherwise transfer), in one transaction or a series of related transactions, assets, cash flow or earning power aggregating more than 50% of the assets, cash flow or earning power of the
Company and its Subsidiaries (taken as a whole) to any Person or Persons (other than the Company or any Subsidiary of the Company in one or more transactions each of which complies with
Section 11(o) hereof) (any event described in clauses (x), (y) or (z) of this Section 13(a) following the Stock Acquisition Date, a "Section 13 Event"), then, and in
each such case, proper provision shall be made so that: (i) each holder of a Right, except as provided in Section 7(e) hereof, shall thereafter have the right to receive upon the
exercise thereof at the then current Purchase Price in accordance with the terms of this Agreement, in lieu of a number of one one-hundredths of a share of Preferred Stock, such number of
validly authorized and issued, fully paid, nonassessable and freely tradeable shares of Common Stock of the Principal Party (as such term is hereinafter defined), not subject to any liens,
encumbrances, rights of first refusal or other adverse claims, as shall be equal to the result obtained by (l) multiplying the then current Purchase Price by the number of one
one-hundredths of a share of Preferred Stock for which a Right is exercisable immediately prior to the first occurrence of a Section 13 Event (or, if a
Section 11(a)(ii) Event has occurred prior to the first occurrence of a Section 13 Event, multiplying the number of such one one-hundredths of a share of Preferred
Stock for which a Right was exercisable immediately prior to the first occurrence of a Section 11(a)(ii) Event by the Purchase Price in effect immediately prior to such first
occurrence), and dividing that product (which, following the first occurrence of a Section 13 Event, shall be referred to as the "Purchase Price" for each Right and for all purposes of this
Agreement) by (2) 50% of the current market price (determined pursuant to Section 11(d)(i) hereof) per share of the Common Stock of such Principal Party on the date of
consummation of such Section 13 Event; (ii) such Principal Party shall thereafter be liable for, and shall assume, by virtue of such Section 13 Event, all the obligations and
duties of the Company pursuant to this Agreement; (iii) the term "Company" shall thereafter be deemed to refer to such Principal Party, it being specifically intended that the provisions of
Section 11 hereof shall apply only to such Principal Party following the first occurrence of a Section 13 Event; (iv) such Principal Party shall take such steps (including, but
not limited to, the reservation of a sufficient number of shares of its Common Stock) in connection with the consummation of any such transaction as may be necessary to assure that the provisions
hereof shall thereafter be applicable, as 

17

 

nearly
as reasonably may be, in relation to its shares of Common Stock thereafter deliverable upon the exercise of the Rights; and (v) the provisions of Section 11(a)(ii) hereof
shall be of no effect following the first occurrence of any Section 13 Event. 

        (b)   "Principal
Party" shall mean: 

          (i)  in
the case of any transaction described in clause (x) or (y) of the first sentence of Section 13(a), the Person that is the issuer of any
securities into which shares of Common Stock of the Company are converted in such merger, consolidation or share exchange, and if no securities are so issued, the Person that is the other party to
such merger, consolidation or share exchange; and 

         (ii)  in
the case of any transaction described in clause (z) of the first sentence of Section 13(a), the Person that is the party receiving the greatest portion
of the assets, cash flow or earning power transferred pursuant to such transaction or transactions; 

provided, however, that in any such case, (1) if the Common Stock of such Person is not at such
time and has not been continuously over the preceding twelve (12) month period registered under Section 12 of the Exchange Act, and such Person is a direct or indirect Subsidiary of
another Person the Common Stock of which is and has been so registered, "Principal Party" shall refer to such other Person; and (2) in case such Person is a Subsidiary, directly or indirectly,
of more than one Person, the Common Stock of two or more of which are and have been so registered, "Principal Party" shall refer to whichever of such Persons is the issuer of the Common Stock having
the greatest aggregate market value. 

        (c)   The
Company shall not consummate any such consolidation, merger, exchange, sale or transfer unless the Principal Party shall have a sufficient number of authorized
shares of its Common Stock which have not been issued or reserved for issuance to permit the exercise in full of the Rights in accordance with this Section 13 and unless prior thereto the
Company and such Principal Party shall have executed and delivered to the Rights Agent a supplemental agreement providing for the terms set forth in paragraphs (a) and (b) of this
Section 13 and further providing that, as soon as practicable after the date of any consolidation, merger, exchange, sale or transfer of assets mentioned in paragraph (a) of this
Section 13, the Principal Party will: 

          (i)  prepare
and file a registration statement under the Act, with respect to the Rights and the securities purchasable upon exercise of the Rights on an appropriate
form, and will use its reasonable best efforts to cause such registration statement to (A) become effective as soon as practicable after such filing and (B) remain effective (with a
prospectus at all times meeting the requirements of the Act) until the Expiration Date; 

         (ii)  deliver
to holders of the Rights historical financial statements for the Principal Party and each of its Affiliates which comply in all respects with the requirements
for registration on Form 10 under the Exchange Act (whether or not the Principal Party would otherwise be required to file such Form); 

        (iii)  use
its reasonable best efforts, if the Common Stock of the Principal Party shall be listed or admitted to trading on the Nasdaq or on a national securities exchange,
to list or admit to trading the Rights and the securities purchasable upon exercise of the Rights on the Nasdaq or such securities exchange; and 

        (iv)  obtain
waivers of any rights of first refusal or preemptive rights in respect of the Common Stock of the Principal Party subject to purchase upon exercise of
outstanding rights. 

        (d)   The
provisions of this Section 13 shall similarly apply to successive mergers or consolidations or sales or other transfers. In the event that a Section 13
Event shall occur at any time after the 

18

 

occurrence
of a Section 11(a)(ii) Event, the Rights which have not theretofore been exercised shall thereafter become exercisable in the manner described in Section 13(a). 

        (e)   In
no event shall the Rights Agent have any liability in respect of any such Principal Party transactions, including, without limitation, the propriety thereof. The
Rights Agent may rely and be fully protected in relying upon a certificate of the Company stating that the provisions of this Section 13 have been fulfilled. The Rights Agent shall not be
obligated to enter into any supplemental agreement referenced in Section 13(c) if such supplemental agreement would change or increase the duties, liabilities or obligations of the Rights Agent
hereunder. 

        Section 14.    Fractional Rights and Fractional Shares.    

        (a)   The
Company shall not be required to issue fractions of Rights, except prior to the Distribution Date as provided in Section 11(p) hereof, or to distribute Rights
Certificates which evidence fractional Rights. In lieu of such fractional Rights, there shall be paid to the registered holders of the Rights Certificates with regard to which such fractional Rights
would otherwise be issuable, an amount in cash equal to the same fraction of the current market value of a whole Right. For purposes of this Section 14(a), the current market value of a whole
Right shall be the closing price of the Rights for the Trading Day immediately prior to the date on which such fractional Rights would have been otherwise issuable. The closing price of the Rights for
any day shall be the last sale price, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported in the
principal consolidated transaction reporting system with respect to securities listed or admitted to trading on the New York Stock Exchange or, if the Rights are not listed or admitted to trading on
the New York Stock Exchange, as reported to the principal consolidated transaction reporting system with respect to securities listed on the principal national securities exchange on which the Rights
are listed or admitted to trading, or if the Rights are not listed or admitted to trading on any national securities exchange, the last quoted price or, if not so quoted, the average of the high bid
and low asked prices in the over-the-counter market, as reported by Nasdaq or such other system then in use or, if on any such date the Rights are not quoted by any such
organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in the Rights selected by the Board of Directors of the Company. If on any
such date no such market maker is making a market in the Rights the fair value of the Rights on such date as determined in good faith by the Board of Directors of the Company shall be used. 

        (b)   The
Company shall not be required to issue fractions of shares of Preferred Stock (other than fractions which are integral multiples of one one-hundredth of
a share of Preferred Stock) upon exercise of the Rights or to distribute certificates which evidence fractional shares of Preferred Stock (other than fractions which are integral multiples of one
one-hundredth of a share of Preferred Stock). Fractions of shares of Preferred Stock in integral multiples of one one-hundredth of a share may, at the election of the Company,
be evidenced by depositary receipts pursuant to an appropriate agreement between the Company and a depositary selected by it; provided,  however, that such
agreement shall provide that the holders of such depositary receipts shall have all the rights, privileges and preferences to which
they are entitled as beneficial owners of the shares represented by such depositary receipts. In lieu of fractional shares of Preferred Stock that are not integral multiples of one
one-hundredth of a share of Preferred Stock, the Company shall pay to the registered holders of Rights Certificates at the time such Rights are exercised as herein provided an amount in
cash equal to the same fraction of the current market value of one one-hundredth of a share of Preferred Stock. For purposes of this Section 14(b), the current market value of one
one-hundredth of a share of Preferred Stock shall be one one-hundredth of the closing price of a share of Preferred Stock (as determined pursuant to
Section 11(d)(ii) hereof) for the Trading Day immediately prior to the date of such exercise. 

        (c)   Following
the occurrence of a Triggering Event, the Company shall not be required to issue fractions of shares of Common Stock upon exercise of the Rights or to
distribute certificates which 

19

 

evidence
fractional shares of Common Stock. In lieu of fractional shares of Common Stock, the Company shall pay to the registered holders of Rights Certificates at the time such Rights are exercised
as herein provided an amount in cash equal to the same fraction of the current market value of one share of Common Stock. For purposes of this Section 14(c), the current market value of one
share of Common Stock shall be the closing price of one share of Common Stock (as determined pursuant to Section 11(d)(i) hereof) for the Trading Day immediately prior to the date of
such exercise. 

        (d)   The
holder of a Right by the acceptance of the Rights expressly waives such holder's right to receive any fractional Rights or any fractional shares upon exercise of a
Right, except as permitted by this Section 14. 

        Section 15.    Rights of Action.    

        All
rights of action in respect of this Agreement, other than rights of action vested in the Rights Agent pursuant to the terms of this Agreement, are vested in the respective registered
holders of the Rights Certificates (and, prior to the Distribution Date, the registered holders of the Common Stock); and any registered holder of any Rights Certificate (or, prior to the Distribution
Date, of the Common Stock), without the consent of the Rights Agent or of the holder of any other Rights Certificate (or, prior to
the Distribution Date, of the Common Stock), may, in such holder's own behalf and for such holder's own benefit, enforce, and may institute and maintain any suit, action or proceeding against the
Company to enforce, or otherwise act in respect of, such holder's right to exercise the Rights evidenced by such Rights Certificate in the manner provided in such Rights Certificate and in this
Agreement. Without limiting the foregoing or any remedies available to the holders of Rights, it is specifically acknowledged that the holders of Rights would not have an adequate remedy at law for
any breach of this Agreement and shall be entitled to specific performance of the obligations hereunder and injunctive relief against actual or threatened violations of the obligations hereunder of
any Person subject to this Agreement. 

        Section 16.    Agreement of Rights Holders.    

        Every
holder of a Right by accepting the same consents and agrees with the Company and the Rights Agent and with every holder of a Right that: 

        (a)   prior
to the Distribution Date, the Rights will be transferable only in connection with the transfer of Common Stock; 

        (b)   after
the Distribution Date, the Rights Certificates are transferable only on the registry books of the Rights Agent if surrendered at the principal office or offices of
the Rights Agent designated for such purposes, duly endorsed or accompanied by a proper instrument of transfer and with the appropriate forms and certificates fully executed; 

        (c)   subject
to Section 6(a), Section 7(e) and Section 7(f) hereof, the Company and the Rights Agent may deem and treat the person in whose name a Rights
Certificate (or, prior to the Distribution Date, the associated Common Stock certificate) is registered as the absolute owner thereof and of the Rights evidenced thereby (notwithstanding any notations
of ownership or writing on the Rights Certificates or the associated Common Stock certificates made by anyone other than the Company or the Rights Agent) for all purposes whatsoever, and neither the
Company nor the Rights Agent shall be required to be affected by any notice to the contrary; and 

        (d)   notwithstanding
anything in this Agreement to the contrary, neither the Company nor the Rights Agent shall have any liability to any holder of a Right or other Person as
a result of its inability to perform any of its obligations under this Agreement by reason of any preliminary or permanent injunction or other order, decree, judgment or ruling issued by a court of
competent jurisdiction or by a governmental, regulatory or administrative agency or commission, or any statute, rule, regulation or executive order promulgated or enacted by any governmental
authority, 

20

 

prohibiting
or otherwise restraining performance of such obligation; provided, however, the Company must
use reasonable efforts to have any such order, decree, judgment or ruling lifted or otherwise overturned as soon as possible. 

        Section 17.    Rights Certificate Holder Not Deemed a Stockholder.    

        No
holder, as such, of any Rights Certificate shall be entitled to vote, receive dividends or be deemed for any purpose to be the holder of the number of one one-hundredths
of a share of Preferred Stock or any other securities of the Company which may at any time be issuable upon the exercise of the Rights represented thereby, nor shall anything contained herein or in
any Rights Certificate be construed to confer upon the holder of any Rights Certificate, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors
or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders
(except as provided in Section 25 hereof), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by such Rights Certificate shall have been exercised
in accordance with the provisions hereof. 

        Section 18.    Concerning the Rights Agent.    

        (a)   The
Company agrees to pay to the Rights Agent reasonable compensation for all services rendered by it hereunder and, from time to time, on demand of the Rights Agent,
its reasonable expenses and counsel fees and disbursements and other disbursements incurred in the administration and execution of this Agreement and the exercise and performance of its duties
hereunder. 

        (b)   The
Rights Agent shall be authorized and protected and shall incur no liability for or in respect of any action taken, suffered or omitted by it in connection with its
acceptance and administration of this Agreement in reliance upon any Rights Certificate or certificate for Common Stock or for other securities of the Company, instrument of assignment or transfer,
power of attorney, endorsement, affidavit, letter, notice, instruction, direction, consent, certificate, statement, or other paper or document believed by it to be genuine and to be signed, and
executed by the proper Person or Persons, or otherwise upon the advice of counsel as set forth in Section 20. 

        Section 19.    Merger or Consolidation or Change of Name of Rights Agent.    

        (a)   Any
Person into which the Rights Agent or any successor Rights Agent may be merged or with which it may be consolidated, or any Person resulting from any merger or
consolidation to which the Rights Agent or any successor Rights Agent shall be a party, or any Person succeeding to all or substantially all the stock transfer business of the Rights Agent or any
successor Rights Agent, shall be the successor to the Rights Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto;  provided,
 however, that such Person would be eligible for appointment as a successor Rights Agent under
the provisions of Section 21 hereof. In case at the time such successor Rights Agent shall succeed to the agency created by this Agreement, any of the Rights Certificates shall have been
countersigned but not delivered, any such successor Rights Agent may adopt the countersignature of a predecessor Rights Agent and deliver such Rights Certificates so countersigned; and in case at the
time any of the Rights Certificates shall not have been countersigned, any successor Rights Agent may countersign such Rights Certificates either in the name of the predecessor or in the name of the
successor Rights Agent; and in all such cases such Rights Certificates shall have the full force provided in the Rights Certificates and in this Agreement. 

        (b)   In
case at any time the name of the Rights Agent shall be changed, and at such time any of the Rights Certificates shall have been countersigned but not delivered, the
Rights Agent may adopt the countersignature under its prior name and deliver Rights Certificates so countersigned; and in case, at that time, any of the Rights Certificates shall not have been
countersigned, the Rights Agent may countersign such Rights Certificates either in its prior name or in its changed name; and in all such cases such Rights Certificates shall have the full force
provided in the Rights Certificates and in this Agreement. 

21

   
        Section 20.    Duties of Rights Agent.    

        The
Rights Agent undertakes only the duties and obligations imposed by this Agreement upon the following terms and conditions, by all of which the Company and the holders of Rights
Certificates, by their acceptance thereof, shall be bound: 

        (a)   The
Rights Agent may consult with legal counsel (who may be legal counsel for the Company), and the opinion of such counsel shall be full and complete authorization and
protection to the Rights Agent as to any action taken or omitted by it in good faith and in accordance with such opinion. 

        (b)   Whenever
in the performance of its duties under this Agreement the Rights Agent shall deem it necessary or desirable that any fact or matter (including, without
limitation, the identity of any Acquiring Person and the determination of "current market price") be proved or established by the Company prior to taking or suffering any action hereunder, such fact
or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a certificate signed by the Chairman of the Board, the
Chief Executive Officer, the President, any Vice President, the Treasurer, any Assistant Treasurer, the Secretary or any Assistant Secretary of the Company and delivered to the Rights Agent; and such
certificate shall be full authorization to the Rights Agent for any action taken or suffered in good faith by it under the provisions of this Agreement in reliance upon such certificate. 

        (c)   The
Rights Agent shall be liable hereunder only for its own gross negligence, bad faith or willful misconduct. 

        (d)   The
Rights Agent shall not be liable for or by reason of any of the statements of fact or recitals contained in this Agreement or in the Rights Certificates or be
required to verify the same (except as to its countersignature on such Rights Certificates), but all such statements and recitals are and shall be deemed to have been made by the Company only. 

        (e)   The
Rights Agent shall not be under any responsibility in respect of the validity of this Agreement or the execution and delivery hereof (except the due execution hereof
by the Rights Agent) or in respect of the validity or execution of any Rights Certificate (except its countersignature thereof); nor shall it be responsible for any breach by the Company of any
covenant or condition contained in this
Agreement or in any Rights Certificate; nor shall it be responsible for any adjustment required under the provisions of Section 11, Section 13 or Section 24 hereof or responsible
for the manner, method or amount of any such adjustment or the ascertaining of the existence of facts that would require any such adjustment (except with respect to the exercise of Rights evidenced by
Rights Certificates after the Rights Agent's receipt of actual notice of any such adjustment); nor shall it by any act hereunder be deemed to make any representation or warranty as to the
authorization or reservation of any shares of Common Stock or Preferred Stock to be issued pursuant to this Agreement or any Rights Certificate or as to whether any shares of Common Stock or Preferred
Stock will, when so issued, be validly authorized and issued, fully paid and nonassessable. 

        (f)    The
Company agrees that it will perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered all such further and other acts,
instruments and assurances as may reasonably be required by the Rights Agent for the carrying out or performing by the Rights Agent of the provisions of this Agreement. 

        (g)   The
Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder from the Chairman of the Board, the
Chief Executive Officer, the President, any Vice President, the Secretary, any Assistant Secretary, the Treasurer or any Assistant Treasurer of the Company, and to apply to such officers for advice or
instructions in 

22

 

connection
with its duties, and it shall incur no liability for or in respect of any action taken, suffered or omitted by it in good faith in accordance with instructions of any such officer. 

        (h)   The
Rights Agent and any stockholder, director, Affiliate, officer or employee of the Rights Agent may buy, sell or deal in any of the Rights or other securities of the
Company or become pecuniarily interested in any transaction in which the Company may be interested, or contract with or lend money to the Company or otherwise act as fully and freely as though it were
not Rights Agent under this Agreement. Nothing herein shall preclude the Rights Agent from acting in any other capacity for the Company or for any other Person. 

        (i)    The
Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either itself or by or through its attorneys or
agents, and the Rights Agent shall not be answerable or accountable for any act, default, neglect or misconduct of any such attorneys or agents or for any loss to the Company resulting from any such
act, default, neglect or misconduct; provided, however, that reasonable care was exercised in the
selection and the continued employment thereof. 

        (j)    No
provision of this Agreement shall require the Rights Agent 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 its rights if there shall be reasonable grounds for believing that repayment of such funds or adequate indemnification against such risk or liability is not reasonably assured to it. 

        (k)   If,
with respect to any Rights Certificate surrendered to the Rights Agent for exercise or transfer, the certificate attached to the form of assignment or form of
election to purchase, as the case may be, has either not been completed or indicates an affirmative response to clause 1 and/or 2 thereof, the Rights Agent shall not take any further action
with respect to such requested exercise or transfer without first consulting with the Company. 

        Section 21.    Change of Rights Agent.    

        The
Rights Agent or any successor Rights Agent may resign and be discharged from its duties under this Agreement upon thirty (30) days' notice in writing mailed to the Company by
registered or certified mail. The Company may remove the Rights Agent or any successor Rights Agent upon thirty (30) days' notice in writing, mailed to the Rights Agent or successor Rights
Agent, as the case may be, by registered or certified mail. If the Rights Agent shall resign or be removed or shall otherwise become incapable of acting, the Company shall appoint a successor to the
Rights Agent. If the Company shall fail to make such appointment within a period of thirty (30) days after giving notice of such removal or after it has been notified in writing of such
resignation or incapacity by the resigning or incapacitated Rights Agent or by the holder of a Rights Certificate (who shall, with such notice, submit such holder's Rights Certificate for inspection
by the Company), then the Rights Agent (at the Company's expense) or any registered holder of any Rights Certificate may apply to any court of competent jurisdiction for the appointment of a new
Rights Agent. Any successor Rights Agent, whether appointed by the Company or by such a court, shall be (i) a Person organized and doing business under the laws of the United States or of the
State of Delaware or the State of New York (or of any other state of the United States so long as such Person is authorized to do business in the State of Delaware or the State of New York), in good
standing, having an office or agency in the State of New York or the State of Delaware, which is authorized under such laws to exercise stock transfer powers and is subject to supervision or
examination by federal or state authority and which has at the time of its appointment as Rights Agent a combined capital and surplus of at least $50,000,000 or (ii) an Affiliate of such
Person. After appointment, the successor Rights Agent shall be vested with the same powers, rights, duties and responsibilities as if it had been originally named as Rights Agent without further act
or deed; but the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any property at the time held by it hereunder, and execute and deliver any further reasonable
assurance, conveyance, act or deed necessary for the purpose. Not later than the 

23

 

effective
date of any such appointment, the Company shall file notice thereof in writing with the predecessor Rights Agent and each transfer agent of the Common Stock and the Preferred Stock, and mail
a notice thereof in writing to the registered holders of the Rights Certificates. Failure to give any notice provided for in this Section 21 or any defect therein shall not affect the legality
or validity of the resignation or removal of the Rights Agent or the appointment of the successor Rights Agent, as the case may be. 

        Section 22.    Issuance of New Rights Certificates.    

        Notwithstanding
any of the provisions of this Agreement or of the Rights to the contrary, the Company may, at its option, issue new Rights Certificates evidencing Rights in such form as
may be approved by its Board of Directors to reflect any adjustment or change in the Purchase Price and the number or kind or class of shares or other securities or property purchasable under the
Rights Certificates made in accordance with the provisions of this Agreement. In addition, in connection with the issuance or sale of shares of Common Stock following the Distribution Date and prior
to the redemption or expiration of the Rights, the Company (a) shall, with respect to shares of Common Stock so issued or sold pursuant to the exercise of stock options or under any employee
plan or arrangement, granted or awarded prior to the Distribution Date, or upon the exercise, conversion or exchange of securities hereinafter issued by the Company, and (b) may, in any other
case, if deemed necessary or appropriate by the Board of Directors of the Company, issue Rights Certificates representing an appropriate number of Rights in connection with such issuance or sale;  provided, however, that (i) no such Rights Certificate shall be issued if, and to the extent
that, the Company shall be advised by counsel that such issuance would create a significant risk of material adverse tax consequences to the Company or the Person to whom such Rights Certificate would
be issued, and (ii) no such Rights Certificate shall be issued if, and to the extent that, appropriate adjustment shall otherwise have been made in lieu of the issuance thereof. 

        Section 23.    Redemption and Termination.    

        (a)   The
Board of Directors of the Company may, at its option, at any time prior to the earlier of (i) the Close of Business on the tenth day following the Stock
Acquisition Date (or, if the Stock Acquisition Date shall have occurred prior to the Record Date, the Close of Business on the tenth day following the Record Date), or (ii) the Final Expiration
Date, redeem all but not less than all of the then outstanding Rights at a redemption price of $.01 per Right, as such amount may be appropriately adjusted to reflect any stock split, stock dividend
or similar transaction occurring after the date hereof (such redemption price being hereinafter referred to as the "Redemption Price"). Notwithstanding anything contained in this Agreement to the
contrary, the Rights shall not be exercisable after the first occurrence of a Section 11(a)(ii) Event until such time as the Company's right of redemption hereunder has expired. The
Company may, at its option, pay the Redemption Price in cash, shares of Common Stock (based on the "current market price", as defined in Section 11(d)(i) hereof, of the Common Stock at
the time of redemption) or any other form of consideration deemed appropriate by the Board of Directors. The redemption of the Rights by the Board of Directors may be made effective at such time, on
such basis and with such conditions as the Board of Directors in its sole discretion may establish. 

        (b)   Immediately
upon the action of the Board of Directors of the Company ordering the redemption of the Rights, evidence of which shall have been filed with the Rights Agent
and without any further action and without any notice, the right to exercise the Rights will terminate and the only right thereafter of the holders of Rights shall be to receive the Redemption Price
for each Right so held. Promptly after the action of the Board of Directors ordering the redemption of the Rights, the Company shall give notice of such redemption to the Rights Agent and the holders
of the then outstanding Rights by mailing such notice to all such holders at each holder's last address as it appears upon the registry books of the Rights Agent or, prior to the Distribution Date, on
the registry books of 

24

 

the
transfer agent for the Common Stock. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. The failure to give, or any
defect in, such notice shall not affect the validity of such redemption. Each such notice of redemption will state the method by which the payment of the Redemption Price will be made. 

        Section 24.    Exchange.    

        (a)   The
Board of Directors of the Company may, at its option, at any time after any Person becomes an Acquiring Person, exchange all or part of the then outstanding and
exercisable Rights (which shall not include Rights that have become null and void pursuant to the provisions of Section 7(e) hereof) for shares of Common Stock at an exchange ratio of one share
of Common Stock per Right, appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof (such exchange ratio being hereinafter referred to
as the "Exchange Ratio"). Notwithstanding the foregoing, the Board of Directors of the Company shall not be empowered to effect such exchange at any time after any Person (other than the Company, any
Subsidiary of the Company, any employee benefit plan of the Company or of any Subsidiary of the Company, or any Person organized, appointed or established by the Company for or pursuant to the terms
of any such plan), together with all Affiliates and Associates of such Person, becomes the Beneficial Owner of fifty percent (50%) or more of the Common Stock then outstanding. 

        (b)   Immediately
upon the action of the Board of Directors of the Company ordering the exchange of any Rights pursuant to subsection (a) of this Section 24 and
without any further action and without any notice, the right to exercise such Rights shall terminate and the only right thereafter of a holder of any such Rights shall be to receive that number of
shares of Common Stock equal to the number of such Rights held by such holder multiplied by the Exchange Ratio. The Company shall promptly give public notice of any exchange;  provided, however, that the failure to give, or any defect in, such notice shall not affect the validity
of such exchange. The Company promptly shall mail a notice of any such exchange to all of the holders of such Rights at their last addresses as they appear upon the registry books of the Rights Agent.
Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of exchange will state the method by which the exchange
of the Common Stock for Rights will be effected and, in the event of any partial exchange, the number of Rights which will be exchanged. Any partial exchange will be effected pro rata based on the
number of Rights (other than Rights which have become null and void pursuant to the provisions of Section 7(e) hereof) held by each holder of Rights. 

        (c)   In
any exchange pursuant to this Section 24, the Company, at its option, may substitute shares of Preferred Stock (or equivalent preferred stock, as such term is
defined in paragraph (b) of Section 11 hereof) for shares of Common Stock exchangeable for Rights, at the initial rate of one one-hundredth of a share of Preferred Stock (or
equivalent preferred stock) for each share of Common Stock, as appropriately adjusted to reflect adjustments in the voting rights of the Preferred Stock pursuant to the terms thereof, so that the
fraction of a share of Preferred Stock delivered in lieu of each share of Common Stock shall have the same voting rights as one share of Common Stock. 

        (d)   In
the event that there shall not be sufficient shares of Common Stock issued but not outstanding or authorized but unissued to permit any exchange of Rights as
contemplated in accordance with this Section 24, the Company shall take all such actions as may be necessary to authorize additional shares of Common Stock for issuance upon exchange of the
Rights. 

        (e)   The
Company shall not be required to issue fractions of shares of Common Stock or to distribute certificates which evidence fractional shares of Common Stock. In lieu of
such fractional shares of Common Stock, there shall be paid to the registered holders of the Rights Certificates with regard to which such fractional shares of Common Stock would otherwise be
issuable, an amount in cash equal to the same fraction of the current market value of a whole share of Common Stock. For the purposes of this subsection (e), the current market value of a whole share
of Common Stock shall 

25

 

be
the closing price of a share of Common Stock (as determined pursuant to the second sentence of Section 11(d)(i) hereof) for the Trading Day immediately prior to the date of exchange
pursuant to this Section 24. 

        Section 25.    Notice of Certain Events.    

        (a)   In
case the Company shall propose, at any time after the Distribution Date, (i) to pay any dividend payable in stock of any class to the holders of Preferred
Stock or to make any other distribution to the holders of Preferred Stock (other than a regular periodic cash dividend out of the earnings or retained earnings of the Company), or (ii) to offer
to the holders of Preferred Stock rights or warrants to subscribe for or to purchase any additional shares of Preferred Stock or shares of stock of any class or any other securities, rights or
options, or (iii) to effect any reclassification of its Preferred Stock (other than a reclassification involving only the subdivision of outstanding shares of Preferred Stock), or
(iv) to effect any consolidation or merger into or with any other Person (other than a Subsidiary of the Company in a transaction which complies with Section 11(o) hereof), or to effect
any sale or other transfer (or to permit one or more of its Subsidiaries to effect any sale or other transfer), in one transaction or a series of related transactions, of more than 50% of the assets,
cash flow or earning power of the Company and its Subsidiaries (taken as a whole) to any other Person or Persons (other than the Company and/or any of its Subsidiaries in one or more transactions each
of which complies with Section 11(o) hereof), or (v) to effect the liquidation, dissolution or winding up of the Company, then, in each such case, the Company shall give to each holder
of a Rights Certificate and to the Rights Agent, to the extent feasible and in accordance with Section 26 hereof, a notice of such proposed action, which shall specify the record date for the
purposes of such stock dividend, distribution of rights or warrants, or the date on which such reclassification, consolidation, merger, sale, transfer, liquidation, dissolution, or winding up is to
take place and the date of participation therein by the holders of the shares of Preferred Stock, if any such date is to be fixed, and such notice shall be so given in the case of any action covered
by clause (i) or (ii) above at least twenty (20) days prior to the record date for determining holders of the shares of Preferred Stock for purposes of such action, and in the
case of any such other action, at least twenty (20) days prior to the date of the taking of such proposed action or the date of participation therein by the holders of the shares of Preferred
Stock, whichever shall be the earlier. 

        (b)   In
case a Section 11(a)(ii) Event shall occur, then, in any such case, (i) the Company shall as soon as practicable thereafter give to each holder
of a Rights Certificate and to the Rights Agent, to the extent feasible and in accordance with Section 26 hereof, a notice of the occurrence of such event, which shall specify the event and the
consequences of the event to holders of Rights under Section 11(a)(ii) hereof, and (ii) all references in the preceding paragraph to Preferred Stock shall be deemed thereafter to
refer to Common Stock and/or, if appropriate, other securities. 

        Section 26.    Notices.    

        Notices
or demands authorized by this Agreement to be given or made by the Rights Agent or by the holder of any Rights Certificate to or on the Company shall be sufficiently given or
made if sent by first-class mail, postage prepaid, addressed (until another address is filed in writing with the Rights Agent) as follows: 

Edwards
Lifesciences Corporation

17221 Red Hill Avenue

Irvine, California 92614

Attention: General Counsel 

Subject
to the provisions of Section 21, any notice or demand authorized by this Agreement to be given or made by the Company or by the holder of any Rights Certificate to or on the Rights
Agent shall be 

26

 

sufficiently
given or made if sent by first-class mail, postage prepaid, addressed (until another address is filed in writing with the Company) as follows: 

Equiserve
Trust Company, N.A.

525 Washington Blvd.

3rd Floor

Jersey City, NJ 07310

Attention: Mike Duncan 

Notices
or demands authorized by this Agreement to be given or made by the Company or the Rights Agent to the holder of any Rights Certificate (or, if prior to the Distribution Date, to the holder of
certificates representing shares of Common Stock) shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed to such holder at the address of such holder as shown on
the registry books of the Company. 

        Section 27.    Supplements and Amendments.    

        Prior
to the Distribution Date, the Company and the Rights Agent shall, if the Company so directs, supplement or amend any provision of this Agreement without the approval of any holders
of certificates representing shares of Common Stock. From and after the Distribution Date, the Company and the Rights Agent shall, if the Company so directs, supplement or amend this Agreement without
the approval of any holders of Rights Certificates in order (i) to cure any ambiguity, (ii) to correct or supplement any provision contained herein which may be defective or inconsistent
with any other provisions herein, (iii) to shorten or lengthen any time period hereunder, or (iv) to change or supplement the provisions hereunder in any manner which in the opinion of
the Company may deem necessary or desirable and which shall not adversely affect the interests of the holders of Rights Certificates (other than an Acquiring Person or an Affiliate or Associate of an
Acquiring Person); provided, this Agreement may not be supplemented or amended to lengthen, pursuant to clause (iii) of this sentence,
(A) a time period relating to when the Rights may be redeemed at such time as the Rights are not then redeemable, or (B) any other time period unless such lengthening is for the purpose
of protecting, enhancing or clarifying the rights of, and/or the benefits to, the holders of Rights. Upon the delivery of a certificate from an appropriate officer of the Company which states that the
proposed supplement or amendment is in compliance with the terms of this Section 27, the Rights Agent shall execute such supplement or amendment. Prior to the Distribution Date, the interests
of the holders of Rights shall be deemed coincident with the interests of the holders of Common Stock. 

        Section 28.    Successors.    

        All
the covenants and provisions of this Agreement by or for the benefit of the Company or the Rights Agent shall bind and inure to the benefit of their respective successors and assigns
hereunder. 

        Section 29.    Determination and Actions by the Board of Directors, etc.    

        For
all purposes of this Agreement, any calculation of the number of shares of Common Stock outstanding at any particular time, including for purposes of determining the particular
percentage of such outstanding shares of Common Stock of which any Person is the Beneficial Owner, shall be made in accordance with the last sentence of
Rule 13d-3(d)(l)(i) of the General Rules and Regulations under the Exchange Act. The Board of Directors of the Company shall have the exclusive power and authority to
administer this Agreement and to exercise all rights and powers specifically granted to the Board of Directors of the Company or to the Company, or as may be necessary or advisable in the
administration of this Agreement, including, without limitation, the right and power to (i) interpret the provisions of this Agreement, and (ii) make all determinations deemed necessary
or advisable for the administration of this Agreement (including, but not limited to, a determination to redeem or not redeem the Rights or to amend this Agreement). All such actions, calculations,
interpretations and determinations (including, for purposes of clause (y) below, all omissions with respect to the foregoing) 

27

 

which
are done or made by the Board of Directors of the Company in good faith shall (x) be final, conclusive and binding on the Company, the Rights Agent, the holders of the Rights and all
other Persons, and (y) not subject the Board of Directors of the Company to any liability to the holders of the Rights. 

        Section 30.    Benefits of this Agreement.    

        Nothing
in this Agreement shall be construed to give to any Person other than the Company, the Rights Agent and the registered holders of the Rights Certificates (and, prior to the
Distribution Date, registered holders of the Common Stock) any legal or equitable right, remedy or claim under this Agreement; but this Agreement shall be for the sole and exclusive benefit of the
Company, the Rights Agent and the registered holders of the Rights Certificates (and, prior to the Distribution Date, registered holders of the Common Stock). 

        Section 31.    Severability.    

        If
any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of
the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated;  provided, however, that notwithstanding anything in this Agreement to the contrary, if any such term,
provision, covenant or restriction is held by such court or authority to be invalid, void or unenforceable and the Board of Directors of the Company determines in its good faith judgment that severing
the invalid language from this Agreement would adversely affect the purpose or effect of this Agreement, the right of redemption set forth in Section 23 hereof shall be reinstated and shall not
expire until the Close of Business on the tenth day following the date of such determination by the Board of Directors of the Company. 

        Section 32.    Governing Law.    

        This
Agreement, each Right and each Rights Certificate issued hereunder shall be deemed to be a contract made under the laws of the State of Delaware and for all purposes shall be
governed by and construed in accordance with the laws of such State applicable to contracts made and to be performed entirely within such State. 

        Section 33.    Counterparts.    

        This
Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together
constitute but one and the same instrument. 

        Section 34.    Descriptive Headings.    

        Descriptive
headings of the several Sections of this Agreement are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions
hereof. 

28

 

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

	 	 	EDWARDS LIFESCIENCES CORPORATION
	

 	
 	

By:	
 	

/s/  BRUCE P. GARREN      
 Name: Bruce P. Garren

Title: Corporate Vice President, General Counsel and Secretary
	

 	
 	
EQUISERVE TRUST COMPANY, N.A.,

AS RIGHTS AGENT
	

 	
 	

By:	
 	

/s/  MICHAEL S. DUNCAN      
 Name: Michael S. Duncan

Title: Director, Corporate Actions

29

   Exhibit A  

FORM OF  

 CERTIFICATE OF DESIGNATIONS  

 OF  

 SERIES A JUNIOR PARTICIPATING PREFERRED STOCK  

 OF  

 EDWARDS LIFESCIENCES CORPORATION  

Pursuant to Section 151 of the  

 Delaware General Corporation Act  

        RESOLVED, that pursuant to the authority vested in the board of directors (the "Board of Directors") of Edwards Lifesciences Corporation, a Delaware corporation
(the "Corporation"), by the Amended and Restated Certificate of Incorporation (the "Charter"), the Board of Directors does hereby create, authorize and provide for the issue of a series of Preferred
Stock, par value $.01 per share, of the Corporation, to be designated "Series A Junior Participating Preferred Stock" (hereinafter referred to as the "Series A Preferred Stock"),
initially consisting of 3,500,000 shares, and to the extent that the designations, powers, preferences and relative and other special rights and the qualifications, limitations or restrictions of the
Series A Preferred Stock are not stated and expressed in the Charter, does hereby fix and herein state and express such designations, powers, preferences and relative and other special rights
and the qualifications, limitations and restrictions thereof, as follows (all terms used herein which are defined in the Charter shall be deemed to have the meanings provided therein): 

        Section 1.    Designation and Amount.    The shares of such series shall be designated as "Series A
Junior Participating Preferred Stock" and the number of shares constituting such series shall be 3,500,000. Such number of shares may be increased or decreased by resolution of the Board of Directors;  provided, that no decrease shall reduce the number of shares of Series A Preferred Stock to a number less than the number of shares then
outstanding plus the number of shares reserved for issuance upon the exercise of outstanding options, rights or warrants or upon the conversion of any outstanding securities issued by the Corporation
convertible into shares of Series A Preferred Stock. 

        Section 2.    Dividends and Distributions.    

        (A)  Subject
to the prior and superior rights of the holders of any shares of any series of Preferred Stock ranking prior and superior to the shares of Series A
Preferred Stock with respect to dividends, the holders of shares of Series A Preferred Stock shall be entitled to receive, when, as and if declared by the Board of Directors out of funds
legally available for the purpose, quarterly dividends payable in cash on the first business day of March, June, September and December in each year (each such date being referred to herein as a
"Quarterly Dividend Payment Date"), commencing on the first Quarterly Dividend Payment Date after the first issuance of a share or fraction of a share of Series A Preferred Stock, in an amount
per share (rounded to the nearest cent) equal to the greater of (a) $.01 or (b) subject to the provision for adjustment hereinafter set forth, 100 times the aggregate per share amount of
all cash dividends, and 100 times the aggregate per share amount (payable in kind) of all non-cash dividends or other distributions other than a dividend payable in shares of Common Stock
or a subdivision of the outstanding shares of Common Stock (by reclassification or otherwise), declared on the Common Stock, par value $1.00 per share, of the Corporation (the "Common Stock") since
the immediately preceding Quarterly Dividend Payment Date, or, with respect to the first Quarterly Dividend Payment Date, since the first issuance of any share or fraction of a share of
Series A 

1

 

Preferred
Stock. In the event the Corporation shall at any time after March 10, 2000 (the "Rights Declaration Date") (i) declare any dividend on Common Stock payable in shares of Common
Stock, (ii) subdivide the outstanding Common Stock, or (iii) combine the outstanding Common Stock into a smaller number of shares, then in each case the amount to which holders of shares
of Series A Preferred Stock were entitled immediately prior to such event under clause (b) of the preceding sentence shall be adjusted by multiplying such amount by a fraction the
numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding
immediately prior to such event. 

        (B)  The
Corporation shall declare a dividend or distribution on the Series A Preferred Stock as provided in paragraph (A) above immediately after it declares a
dividend or distribution on the Common Stock (other than a dividend payable in shares of Common Stock); provided,  however, that, in the event no dividend
or distribution shall have been declared on the Common Stock during the period between any Quarterly Dividend
Payment Date and the next subsequent Quarterly Dividend Payment Date, subject to the prior and superior rights of the holders of any shares of any series of Preferred Stock ranking prior to and
superior to the shares of Series A Preferred Stock with respect to dividends, a dividend of $.01 per share on the Series A Preferred Stock shall nevertheless by payable on such
subsequent Quarterly Dividend Payment Date. 

        (C)  Dividends
shall begin to accrue and be cumulative on outstanding shares of Series A Preferred Stock from the Quarterly Dividend Payment Date next preceding the
date of issue of such shares of Series A Preferred Stock, unless the date of issue of such shares is prior to the record date for the first Quarterly Dividend Payment Date, in which case
dividends on such shares shall begin to accrue from the date of issue of such shares, or unless the date of issue is a Quarterly Dividend Payment Date or is a date after the record date for the
determination of holders of shares of Series A Preferred Stock entitled to receive a quarterly dividend and before such Quarterly Dividend Payment Date, in either of which events such dividends
shall begin to accrue and be cumulative from such Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not bear interest. Dividends paid on the shares of Series A Preferred Stock
in an amount less than the total amount of such dividends at the time accrued and payable on such shares shall be allocated pro rata on a share-by-share basis among all such
shares at the time outstanding. The Board of Directors may fix a record date for the determination of holders of shares of Series A Preferred Stock entitled to receive payment of a dividend or
distribution declared thereon, which record date shall be no more than 60 days prior to the date fixed for the payment thereof. 

        Section 3.    Voting Rights.    

        The
holders of shares of Series A Preferred Stock shall have the following voting rights: 

        (A)  Subject
to the provision for adjustment hereinafter set forth, each share of Series A Preferred Stock shall entitle the holder thereof to 100 votes on all matters
submitted to a vote of the stockholders of the Corporation. In the event the Corporation shall at any time after the Rights Declaration Date (i) declare any dividend on Common Stock payable in
shares of Common Stock, (ii) subdivide the outstanding Common Stock, or (iii) combine the outstanding Common Stock into a smaller number of shares, then in each such case the number of
votes per share to which holders of shares of Series A Preferred Stock were entitled immediately prior to such event shall be adjusted by multiplying such number by a fraction the numerator of
which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to
such event. 

2

 

        (B)  Except
as otherwise provided herein or by law, the holders of shares of Series A Preferred Stock and the holders of shares of Common Stock shall vote collectively
as one class on all matters submitted to a vote of stockholders of the Corporation. 

        (C)  (i) If
at any time dividends on any Series A Preferred Stock shall be in arrears in an amount equal to six (6) quarterly dividends thereon, the
occurrence of such contingency shall mark the beginning of a period (herein called a "default period") which shall extend until such time when all accrued and unpaid dividends for all previous
quarterly dividend periods and for the current quarterly dividend
period on all shares of Series A Preferred Stock then outstanding shall have been declared and paid or set apart for payment. During each default period, all holders of Preferred Stock
(including holders of the Series A Preferred Stock) with dividends in arrears in an amount equal to six (6) quarterly dividends thereon, voting as a class, irrespective of series, shall
have the right to elect two (2) Directors. 

        (ii)   During
any default period, such voting right of the holders of Series A Preferred Stock may be exercised initially at a special meeting called pursuant to
subparagraph (iii) of this Section 3(C) or at any annual meeting of stockholders, and thereafter at annual meetings of stockholders, provided that such voting right shall not be
exercised unless the holders of ten percent (10%) in number of shares of Preferred Stock outstanding shall be present in person or by proxy. The absence of a quorum of the holders of Common Stock
shall not affect the exercise by the holders of Preferred Stock of such voting rights. At any meeting at which the holders of Preferred Stock shall exercise such voting right initially during an
existing default period, they shall have the right, voting as a class, to elect Directors to fill such vacancies, if any, in the Board of Directors as may then exist up to two (2) Directors or,
if such right is exercised at an annual meeting, to elect two (2) Directors. If the number which may be so elected at any special meeting does not amount to the required number, the holders of
the Preferred Stock shall have the right to make such increase in the number of Directors as shall be necessary to permit the election by them of the required number. After the holders of the
Preferred Stock shall have exercised their right to elect Directors in any default period and during the continuance of such period, the number of Directors shall not be increased or decreased except
by vote of the holders of Preferred Stock as herein provided or pursuant to the rights of any equity securities ranking senior to or pari passu with the
Series A Preferred Stock. 

        (iii)  Unless
the holders of Preferred Stock shall, during an existing default period, have previously exercised their right to elect Directors, the Board of Directors may
order, or any stockholder or stockholders owning in the aggregate not less than ten percent (10%) of the total number of shares of Preferred Stock outstanding, irrespective of series, may request, the
calling of special meeting of the holders of Preferred Stock, which meeting shall thereupon be called by the Chairman of the Board, the Chief Executive Officer, the President, a Vice President or the
Secretary of the Corporation. Notice of such meeting and of any annual meeting at which holders of Preferred Stock are entitled to vote pursuant to this paragraph (C)(iii) shall be given
to each holder of record of Preferred Stock by mailing a copy of such notice to him or her at his or her last address as the same appears on the books of the Corporation. Such meeting shall be called
for a time not earlier than 10 days and not later than 60 days after such order or request, or in default of the calling of such meeting within 60 days after such order or
request, such meeting may be called on similar notice by any stockholder or stockholders owning in the aggregate not less than ten percent (10%) of the total number of shares of Preferred Stock
outstanding. Notwithstanding the provisions of this paragraph (C)(iii), no such special meeting shall be called during the period within 60 days immediately preceding the date fixed for
the next annual meeting of the stockholders. 

3

 

        (iv)  In
any default period, the holders of Common Stock, and, if applicable, other classes of capital stock of the Corporation, shall continue to be entitled to elect the
whole number of Directors until the holders of Preferred Stock shall have exercised their right to elect two (2) Directors voting as a class,
after the exercise of which right (x) the Directors so elected by the holders of Preferred Stock shall continue in office until their successors shall have been elected by such holders or until
the expiration of the default period, and (y) any vacancy in the Board of Directors may (except as provided in paragraph (C)(ii) of this Section 3) be filled by vote of a
majority of the remaining Directors theretofore elected by the holders of the class of capital stock which elected the Director whose office shall have become vacant. References in this
paragraph (C) to Directors elected by the holders of a particular class of stock shall include Directors appointed by such Directors to fill vacancies as provided in clause (y) of the
foregoing sentence. 

        (v)   Immediately
upon the expiration of a default period, (x) the right of the holders of Preferred Stock as a class to elect Directors shall cease, (y) the
term of any Directors elected by the holders of Preferred Stock as a class shall terminate, and (z) the number of Directors shall be such number as may be provided for in the articles of
incorporation or by-laws irrespective of any increase made pursuant to the provisions of paragraph (C)(ii) of this Section 3 (such number being subject, however, to
change thereafter in any manner provided by law or in the articles of incorporation or by-laws). Any vacancies in the Board of Directors effected by the provisions of clauses
(y) and (z) in the preceding sentence may be filled by a majority of the remaining Directors. 

        (D)  Except
as set forth herein, holders of Series A Preferred Stock shall have no special voting rights and their consent shall not be required (except to the extent
they are entitled to vote with holders of Common Stock as set forth herein) for taking any corporate action. 

        Section 4.    Certain Restrictions.    

        (A)  Whenever
quarterly dividends or other dividends or distributions payable on the Series A Preferred Stock as provided in Section 2 are in arrears,
thereafter and until all accrued and unpaid dividends and distributions, whether or not declared, on shares of Series A Preferred Stock outstanding shall have been paid in full, the Corporation
shall not: 

        (i)    declare
or pay dividends on, make any other distributions on, or redeem or purchase or otherwise acquire for consideration any shares of capital stock ranking junior
(either as to dividends or upon liquidation, dissolution or winding up) to the Series A Preferred Stock; 

        (ii)   declare
or pay dividends on or make any other distributions on any shares of stock ranking on a parity (either as to dividends or upon liquidation, dissolution or
winding up) with the Series A Preferred Stock, except dividends paid ratably on the Series A Preferred Stock and all such parity stock on which dividends are payable or in arrears in
proportion to the total amounts to which the holders of all such shares are then entitled; 

        (iii)  redeem
or purchase or otherwise acquire for consideration shares of any capital stock ranking on a parity (either as to dividends or upon liquidation, dissolution or
winding up) with the Series A Preferred Stock, provided that the Corporation may at any time redeem, purchase or otherwise acquire shares of any such parity stock in exchange for shares of any
capital stock of the Corporation ranking junior (either as to dividends or upon dissolution, liquidation or winding up) to the Series A Preferred Stock; or 

        (iv)  purchase
or otherwise acquire for consideration any shares of Series A Preferred Stock, or any shares of capital stock ranking on a parity with the
Series A Preferred Stock, except in accordance with a purchase offer made in writing or by publication (as determined by the Board of Directors) to all holders of such shares upon such terms as
the Board of Directors, after 

4

 

consideration
of the respective annual dividend rates and other relative rights and preferences of the respective series and classes, shall determine in good faith will result in fair and equitable
treatment among the respective series or classes. 

        (B)  The
Corporation shall not permit any subsidiary of the Corporation to purchase or otherwise acquire for consideration any shares of stock of the Corporation unless the
Corporation could, under paragraph (A) of this Section 4, purchase or otherwise acquire such shares at such time and in such manner. 

        Section 5.    Reacquired Shares.    

        Any
shares of Series A Preferred Stock purchased or otherwise acquired by the Corporation in any manner whatsoever shall be retired and cancelled promptly after the acquisition
thereof. All such shares shall upon their cancellation become authorized but unissued shares of Preferred Stock and may be reissued as part of a new series of Preferred Stock to be created by
resolution or resolutions of the Board of Directors, subject to the conditions and restrictions on issuance set forth herein. 

        Section 6.    Liquidation, Dissolution or Winding Up.    

        (A)  Upon
any liquidation (voluntary or otherwise), dissolution or winding up of the Corporation, no distribution shall be made to the holders of shares of capital stock
ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A Preferred Stock unless, prior thereto, the holders of shares of Series A Preferred
Stock shall have received $100 per share, plus an amount equal to accrued and unpaid dividends and distributions thereon, whether or not declared, to the date of such payment (the "Series A
Liquidation Preference"). Following the payment of the full amount of the Series A Liquidation Preference, no additional distributions shall be made to the holders of shares of Series A
Preferred Stock unless, prior thereto, the holders of shares of Common Stock shall have received an amount per share (the "Common Adjustment") equal to the quotient obtained by dividing (i) the
Series A Liquidation Preference by (ii) 100 (as appropriately adjusted as set forth in subparagraph (C) below to reflect such events as stock splits, stock dividends and
recapitalizations with respect to the Common Stock) (such number in clause (ii), the "Adjustment Number"). Following the payment of the full amount of the Series A Liquidation Preference
and the Common Adjustment in respect of all outstanding shares of Series A Preferred Stock and Common Stock, respectively, and the payment of liquidation preferences of all other shares of
capital stock which rank prior to or on a parity with Series A Preferred Stock, holders of Series A Preferred Stock and holders of shares of Common Stock shall receive their ratable and
proportionate share of the remaining assets to be distributed in the ratio of the Adjustment Number to 1 with respect to such Preferred Stock and Common Stock, on a per share basis, respectively. 

        (B)  In
the event, however, that there are not sufficient assets available to permit payment in full of the Series A Liquidation Preference and the liquidation
preferences of all other series of Preferred Stock, if any, which rank on a parity with the Series A Preferred Stock, then such remaining assets shall be distributed ratably to the holders of
such parity shares in proportion to their respective liquidation preferences. In the event, however, that there are not sufficient assets available to permit payment in full of the Common Adjustment,
then such remaining assets shall be distributed ratably to the holders of Common Stock. 

        (C)  In
the event the Corporation shall at any time after the Rights Declaration Date (i) declare any dividend on Common Stock payable in shares of Common Stock,
(ii) subdivide the outstanding Common Stock, or (iii) combine the outstanding Common Stock into a smaller number of shares, then in each such case the Adjustment Number in effect
immediately prior to such event shall be adjusted by multiplying such Adjustment Number by a fraction the numerator of which is the number of shares of Common Stock outstanding immediately after such
event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. 

5

 

        Section 7.    Consolidation, Merger, etc.    

        In
case the Corporation shall enter into any consolidation, merger, combination or other transaction in which the shares of Common Stock are exchanged for or changed into other stock or
securities, cash and/or any other property, then in any such case the shares of Series A Preferred Stock shall at the
same time be similarly exchanged or changed into an amount per share (subject to the provision for adjustment hereinafter set forth) equal to 100 times the aggregate amount of capital stock,
securities, cash and/or any other property (payable in kind), as the case may be, for which or into which each share of Common Stock is exchanged or changed. In the event the Corporation shall at any
time after the Rights Declaration Date (i) declare any dividend on Common Stock payable in shares of Common Stock, (ii) subdivide the outstanding Common Stock, or (iii) combine
the outstanding Common Stock into a smaller number of shares, then in each such case the amount set forth in the preceding sentence with respect to the exchange or change of shares of Series A
Preferred Stock shall be adjusted by multiplying such amount by a fraction the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator
of which is the number of shares of Common Stock that were outstanding immediately prior to such event. 

        Section 8.    No Redemption.    

        The
shares of Series A Preferred Stock shall not be redeemable. 

        Section 9.    Ranking.    

        The
Series A Preferred Stock shall rank junior to all other series of the Corporation's Preferred Stock as to the payment of dividends and the distribution of assets, whether or
not upon the dissolution, liquidation or winding up of the Corporation, unless the terms of any such series shall provide otherwise. 

        Section 10.    Amendment.    

        The
Charter shall not be amended in any manner which would materially alter or change the powers, preferences or special rights of the Series A Preferred Stock so as to affect
them adversely without the affirmative vote of the holders of at least two-thirds of the outstanding shares of Series A Preferred Stock, voting separately as a class. 

        Section 11.    Fractional Shares.    

        Series A
Preferred Stock may be issued in fractions of a share which shall entitle the holder, in proportion to such holder's fractional shares, to exercise voting rights, receive
dividends, participate in distributions and to have the benefit of all other rights of holders of Series A Preferred Stock. 

6

  

Exhibit B  

[Form
of Rights Certificate] 

	Certificate No. R-	 	                                        
                  Rights

NOT EXERCISABLE AFTER MARCH 31, 2010 OR EARLIER IF REDEEMED OR EXCHANGED BY THE COMPANY. THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE COMPANY, AT $.01 PER RIGHT,
AND TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES, RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON (AS SUCH TERM IS DEFINED IN THE RIGHTS AGREEMENT) AND ANY
SUBSEQUENT HOLDER OF SUCH RIGHTS MAY BECOME NULL AND VOID. [THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY A PERSON WHO WAS OR BECAME AN ACQUIRING
PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT). ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY MAY BECOME NULL
AND VOID IN THE CIRCUMSTANCES SPECIFIED IN SECTION 7(e) OF SUCH AGREEMENT.](1) 

	(1)
	The
portion of the legend in brackets shall be inserted only if applicable and shall replace the preceding sentence. 

1

 
 
 

RIGHTS CERTIFICATE    
    
    Edwards Lifesciences Corporation    
    

        This certifies that                        , or registered assigns,
 is the registered owner of the number of Rights set forth above, each of which entitles the owner
thereof, subject to the terms, provisions and conditions of the Rights Agreement, dated as of March 31, 2000 (the "Rights Agreement"), between Edwards Lifesciences Corporation, a Delaware
corporation (the "Company"), and Equiserve Trust Company, N.A. (the "Rights Agent"), to purchase from the Company at any time prior to 5:00 P.M. (New York time) on March 31, 2010 at the
office or offices of the Rights Agent designated for such purpose, or its
successors as Rights Agent, one one-hundredth of a fully paid, nonassessable share of Series A Junior Participating Preferred Stock, par value $.01 per share (the "Preferred
Stock"), of the Company, at a purchase price of $80 per one one-hundredth of a share (the "Purchase Price"), upon presentation and surrender of this Rights Certificate with the Form of
Election to Purchase and related Certificate duly executed. The number of Rights evidenced by this Rights Certificate (and the number of shares which may be purchased upon exercise thereof) set forth
above, and the Purchase Price per share set forth above, are the number and Purchase Price as of March 31, 2000, based on the Preferred Stock as constituted at such date. The Company reserves
the right to require prior to the occurrence of a Triggering Event (as such term is defined in the Rights Agreement) that, upon any exercise of Rights, a number of Rights be exercised so that only
whole shares of Preferred Stock will be issued. 

        Upon
the occurrence of a Section 11(a)(ii) Event (as such term is defined in the Rights Agreement), if the Rights evidenced by this Rights Certificate are beneficially
owned by (i) an Acquiring Person or an Affiliate or Associate of any such Acquiring Person (as such terms are defined in the Rights Agreement), (ii) a transferee of any such Acquiring
Person, Associate or Affiliate, or (iii) under certain circumstances specified in the Rights Agreement, a transferee of a person who, after such transfer, became an Acquiring Person or an
Affiliate or Associate of such Person, such Rights shall become null and void and no holder hereof shall have any right with respect to such Rights from and after the occurrence of such
Section 11(a)(ii) Event. 

        As
provided in the Rights Agreement, the Purchase Price and the number and kind of shares of Preferred Stock or other securities which may be purchased upon the exercise of the Rights
evidenced by this Rights Certificate are subject to modification and adjustment upon the happening of certain events, including Triggering Events. 

        This
Rights Certificate is subject to all of the terms, provisions and conditions of the Rights Agreement, which terms, provisions and conditions are hereby incorporated herein by
reference and made a part hereof and to which Rights Agreement reference is hereby made for a full description of the rights, limitations of rights, obligations, duties and immunities hereunder of the
Rights Agent, the Company and the holders of the Rights Certificates, which limitations of rights include the temporary suspension of the exercisability of such Rights under the specific circumstances
set forth in the Rights Agreement. Copies of the Rights Agreement are on file at the above-mentioned office of the Rights Agent and are also available upon written request to the Company. 

        This
Rights Certificate, with or without other Rights Certificates, upon surrender at the principal office or offices of the Rights Agent designated for such purpose, may be exchanged
for another Rights Certificate or Rights Certificates of like tenor and date evidencing Rights entitling the holder to purchase a like aggregate number of one one-hundredths of a share of
Preferred Stock as the Rights evidenced by the Rights Certificates surrendered shall have entitled such holder to purchase. If this Rights Certificate shall be exercised in part, the holder shall be
entitled to receive upon surrender hereof another Rights Certificate or Rights Certificates for the number of whole Rights not exercised. 

        Subject
to the provisions of the Rights Agreement, the Rights evidenced by this Certificate may, in each case at the option of the Company, be (i) redeemed by the Company at its
option at a 

2

 

redemption
price of $.01 per Right or (ii) exchanged in whole or in part for shares of Common Stock or other securities of the Company. Immediately upon the action of the Board of Directors of
the Company authorizing redemption, the Rights will terminate and the only right of the holders of Rights will be to receive the redemption price. 

        No
fractional shares of Preferred Stock will be issued upon the exercise of any Right or Rights evidenced hereby (other than fractions which are integral multiples of one
one-hundredth of a share of Preferred Stock, which may, at the election of the Company, be evidenced by depositary receipts), but in lieu thereof a cash payment will be made, as provided
in the Rights Agreement. 

        No
holder of this Rights Certificate shall be entitled to vote or receive dividends or be deemed for any purpose the holder of shares of Preferred Stock or of any other securities of the
Company which may at any time be issuable on the exercise hereof, nor shall anything contained in the Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the
rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any
corporate action, or, to receive notice of meetings or other actions affecting stockholders (except as provided in the Rights Agreement), or to receive dividends or subscription rights, or otherwise,
until the Right or Rights evidenced by this Rights Certificate shall have been exercised as provided in the Rights Agreement. 

        This
Rights Certificate shall not be valid or obligatory for any purpose until it shall have been countersigned manually by an authorized signatory of the Rights Agent. 

        WITNESS
the facsimile signature of the proper officers of the Company and its corporate seal. 

Dated
as of                                       ,
                         

	ATTEST:	 	EDWARDS LIFESCIENCES CORPORATION
	

 	
 	

By:	
 	

 
	
 Secretary	 	 	 	
 Name:

Title:
	

Countersigned:	
 	

 	
 	

 
	

Date:
                                      	
 	

 	
 	

 
	

EQUISERVE TRUST COMPANY, N.A.	
 	

 	
 	

 
	

, as Rights Agent

	
 	

 	
 	

 

	
By:	
 	

 	
 	

 
	 	 	
 Authorized Signatory

	 	 

3

 
[Form of Reverse Side of Rights Certificate] 

FORM
OF ASSIGNMENT 

(To
be executed by the registered holder if such 

holder
desires to transfer the Rights Certificate.) 

FOR
VALUE RECEIVED
                                         
                                          
                                          

 

hereby
sells, assigns and transfers unto
                                         
                                          
                        

(Please
print name and address of transferee) 

this
Rights Certificate, together with all right, title and interest therein, and does hereby irrevocably constitute and appoint
                         Attorney, to transfer the
within Rights Certificate on the books of the within-named Company, with full power of substitution. 

Dated:
                                         
       ,                          

	 	 	
 Signature

Signature Guaranteed: 

4

 
Certificate

        The
undersigned hereby certifies by checking the appropriate boxes that: 

        (1)   this
Rights Certificate            is            is not being sold, assigned and transferred by or on behalf of a Person who is or was
an Acquiring Person or
an Affiliate or Associate of an Acquiring Person (as such terms are defined pursuant to the Rights Agreement); 

        (2)   after
due inquiry and to the best knowledge of the undersigned, it did did not acquire the Rights evidenced by this Rights Certificate from any Person who is, was or
subsequently became an Acquiring Person or an Affiliate or Associate of an Acquiring Person. 

Dated:
                                         
       ,          

	 	 	
        Signature

Signature Guaranteed: 

5

 
NOTICE 

        The
signature to the foregoing Assignment and Certificate must correspond to the name as written upon the face of this Rights Certificate in every particular, without alteration or
enlargement or any change whatsoever. 

 
 

FORM OF ELECTION TO PURCHASE    
    
    (To be executed if holder desires to exercise Rights represented by the Rights Certificate.)    

TO:
EDWARDS LIFESCIENCES CORPORATION 

        The
undersigned hereby irrevocably elects to exercise              Rights represented by this Rights Certificate to purchase the shares of Preferred Stock
issuable upon the exercise of the Rights (or such other securities of the Company or of any other person which may be issuable upon the exercise of the Rights) and requests that certificates for such
shares (or other securities) be issued in the name of and delivered to: 

Please
insert social security

or other identifying number:                          

	
 (Please print name and address)
	

        If such number of Rights shall not be all the Rights evidenced by this Rights Certificate, a new Rights Certificate for the balance of such Rights shall be
registered in the name of and delivered to: 

Please
insert social security

or other identifying number:
                                         
        

	
 (Please print name and address)
	

Dated:
                                         
       , 

	 	 	
        Signature

Signature Guaranteed: 

6

 
Certificate 

        The
undersigned hereby certifies by checking the appropriate boxes that: 

        (1)   the
Rights evidenced by this Rights Certificate are are not being exercised by or on behalf of a Person who is or was an Acquiring Person or an Affiliate or Associate of
an Acquiring Person (as such terms are defined pursuant to the Rights Agreement); 

        (2)   after
due inquiry and to the best knowledge of the undersigned, it did did not acquire the Rights evidenced by this Rights Certificate from any Person who is, was or
became an Acquiring Person or an Affiliate or Associate of an Acquiring Person. 

Dated:
                                         
       ,          

	 	 	
 Signature

Signature Guaranteed: 

NOTICE 

        The
signature to the foregoing Election to Purchase and Certificate must correspond to the name as written upon the face of this Rights Certificate in every particular, without
alteration or enlargement or any change whatsoever. 

7

   Exhibit C  

SUMMARY OF RIGHTS TO PURCHASE PREFERRED STOCK  

        On March 10, 2000, the Board of Directors of Edwards Lifesciences Corporation (the "Company") declared a dividend distribution of one Right for each
outstanding share of the Company's common stock, par value $1.00 per share ("Common Stock"), to stockholders of record at the Close of Business on March 31, 2000. Each Right entitles the
registered holder to purchase from the Company a unit consisting of one one-hundredth of a share (a "Unit") of Series A Junior Participating Preferred Stock, par value $.01 per
share (the "Preferred Stock"), at a Purchase Price of $80 per Unit, subject to adjustment. The following is a summary description of the Rights and is qualified in its entirety by the Rights Agreement
(the "Rights Agreement") dated as of March 31, 2000 between the Company and Equiserve Trust Company, N.A., as Rights Agent. 

        Initially,
the Rights will be attached to all Common Stock certificates representing shares then outstanding, and no separate Rights certificates will be distributed. The Rights will
separate from the Common Stock and the Distribution Date will occur upon the earlier of (i) 10 days following a public announcement that a person or group of affiliated or associated
persons (an "Acquiring Person") has acquired, or obtained the right to acquire, beneficial ownership of 15% or more of the outstanding shares of Common Stock (the "Stock Acquisition Date") or
(ii) 10 business days (or such later date as may be determined by action of the Board of Directors prior to such time as any person or group becomes an Acquiring Person) following the
commencement of a tender offer or exchange offer which, if consummated, would result in a person or group beneficially owning 15% or more of the outstanding shares of Common Stock. 

        Until
the Distribution Date, (i) the Rights will be evidenced by the Common Stock certificates and will be transferred with and only with such Common Stock certificates,
(ii) new Common Stock certificates issued after March 31, 2000, will contain a notation incorporating the Rights Agreement by reference and (iii) the surrender for transfer of any
certificates for Common Stock outstanding will also constitute the transfer of the Rights associated with the Common Stock represented by such certificate. 

        Pursuant
to the Rights Agreement, the Company reserves the right to require prior to the occurrence of a Triggering Event (as defined below) that, upon any exercise of Rights, a number
of Rights be exercised so that only whole shares of Preferred Stock will be issued. 

        The
Rights are not exercisable until the Distribution Date and will expire at the Close of Business on March 31, 2010, unless earlier redeemed by the Company as described below. 

        As
soon as practicable after the Distribution Date, Rights certificates will be mailed to holders of record of the Common Stock as of the Close of Business on the Distribution Date and,
thereafter, the separate Rights certificates alone will represent the Rights. Except as otherwise provided in the Rights Agreement, only shares of Common Stock issued prior to the Distribution Date
will be issued with Rights. 

        In
the event that, at any time following the Distribution Date, a person or group becomes an Acquiring Person, each holder of a Right will thereafter have the right to receive, upon
exercise, Common Stock having a value equal to two times the exercise price of the Right. If an insufficient number of shares of Common Stock is authorized for issuance, then the Board would be
required to substitute cash, property or other securities of the Company for the Common Stock. Notwithstanding any of the foregoing, following the occurrence of the event set forth in this paragraph,
all Rights that are, or (under certain circumstances specified in the Rights Agreement) were, beneficially owned by any Acquiring Person will be null and void. However, Rights are not exercisable
following the occurrence of the event set forth in this paragraph until such time as the Rights are no longer redeemable by the Company as set forth below. 

        For
example, at an exercise price of $80 per Right, each Right not owned by an Acquiring Person (or by certain related parties) following an event set forth in the preceding paragraph
would entitle its 

1

 

holder
to purchase $160 worth of Common Stock (or other consideration, as noted above) for $80. Assuming that the Common Stock had a per share value of $40 at such time, the holder of each valid Right
would be entitled to purchase 4 shares of Common Stock for $80. 

        In
the event that, at any time following the Stock Acquisition Date, (i) the Company is acquired in a merger or other business combination transaction in which the Company is not
the surviving corporation, (ii) the Company is acquired in a merger or other business combination transaction in which the Company is the surviving corporation and all or part of the Common
Stock is converted into securities of another entity, cash or other property, or (iii) 50% or more of the Company's assets, cash flow or earning power is sold or transferred, each holder of a
Right (except Rights which previously have been voided as set forth above) shall thereafter have the right to receive, upon exercise, common stock of the acquiring company having a value equal to two
times the exercise price of the Right. The
events set forth in this paragraph and in the second preceding paragraph are referred to as the "Triggering Events." 

        The
purchase price payable, and the number of Units of Preferred Stock or other securities or property issuable, upon exercise of the Rights are subject to adjustment from time to time
to prevent dilution (i) in the event of a stock dividend on, or a subdivision, combination or reclassification of, the Preferred Stock, (ii) if holders of the Preferred Stock are granted
certain rights, options or warrants to subscribe for Preferred Stock or convertible securities at less than the current market price of the Preferred Stock, or (iii) upon the distribution to
holders of the Preferred Stock of evidences of indebtedness or assets (excluding regular periodic cash dividends) or of subscription rights or warrants (other than those referred to above). 

        With
certain exceptions, no adjustment in the Purchase Price will be required until cumulative adjustments amount to at least 1% of the Purchase Price. No fractional Units will be issued
and, in lieu thereof, an adjustment in cash will be made based on the market price of the Preferred Stock on the last trading day prior to the date of exercise. 

        At
any time after any person or group becomes an Acquiring Person and prior to the acquisition by such person or group of 50% or more of the outstanding shares of Common Stock, the Board
of Directors of the Company may exchange the Rights (other than Rights owned by such person or group which will have become void), in whole or in part, at an exchange ratio of one share of Common
Stock, or one one-hundredth of a share of Preferred Stock (or of a share of a class or series of the Company's preferred stock having equivalent rights, preferences and privileges), per
Right (subject to adjustment). 

        In
general, the Company may redeem the Rights in whole, but not in part, at a price of $.01 per Right (subject to adjustment and payable in cash, Common Stock or other consideration
deemed appropriate by the Board of Directors) at any time until ten days following the Stock Acquisition Date. Immediately upon the action of the Board of Directors authorizing any redemption, the
Rights will terminate and the only right of the holders of Rights will be to receive the redemption price. 

        Until
a Right is exercised, the holder thereof, as such, will have no rights as a stockholder of the Company, including, without limitation, the right to vote or to receive dividends.
While the distribution of the Rights will not result in the recognition of taxable income by stockholders or the Company, stockholders may, depending upon the circumstances, recognize taxable income
after a Triggering Event. 

        The
terms of the Rights may be amended by the Board of Directors of the Company without the consent of the holders of the Rights, except that from and after such time as any person or
group of affiliated or associated persons becomes an Acquiring Person no such amendment may adversely affect the interests of the holders of the Rights. 

        A
copy of the Rights Agreement is available free of charge from the Company. This description of the Rights does not purport to be complete and is qualified in its entirety by reference
to the Rights Agreement, which is incorporated herein by reference. 

2

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RIGHTS CERTIFICATE Edwards Lifesciences Corporation

FORM OF ELECTION TO PURCHASE (To be executed if holder desires to exercise Rights represented by the Rights Certificate.)

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