Document:

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                                                                     EXHIBIT 4.1

                                                                  EXECUTION COPY

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                                 SIX FLAGS, INC.

                                  $260,000,000

                     4.50% CONVERTIBLE SENIOR NOTES DUE 2015

                     ---------------------------------------

                          SECOND SUPPLEMENTAL INDENTURE

                          DATED AS OF NOVEMBER 19, 2004

                              THE BANK OF NEW YORK

                                   AS TRUSTEE

--------------------------------------------------------------------------------
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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            PAGE
<S>                                                                         <C>

ARTICLE I ESTABLISHMENT OF NEW SERIES OF DEBT SECURITIES.......................1

      Section 1.01.     Establishment..........................................1

ARTICLE II DEFINITIONS.........................................................2

      Section 2.01.     Definitions............................................2
      Section 2.02.     Other Definitions......................................6

ARTICLE III THE NOTES..........................................................7

      Section 3.01.     Issuance of Additional Notes...........................7
      Section 3.02.     Payments by Company by Wire Transfer...................7
      Section 3.03.     Form and Dating........................................7
      Section 3.04.     Conversion Agent.......................................8

ARTICLE IV OPTIONAL REDEMPTION.................................................9

      Section 4.01.     Optional Redemption; Notices to Trustee................9
      Section 4.02.     Selection of Notes to Be Redeemed......................9
      Section 4.03.     Notice of Redemption..................................10
      Section 4.04.     Effect of Notice of Redemption........................11
      Section 4.05.     Deposit of Redemption Price...........................11
      Section 4.06.     Notes Redeemed in Part................................11

ARTICLE V PURCHASE OF NOTES AT OPTION OF THE HOLDER UPON FUNDAMENTAL
      CHANGE..................................................................12

      Section 5.01.     Fundamental Change Offer..............................12
      Section 5.02.     Effect of Fundamental Change Purchase Notice;
                        Withdrawal............................................14
      Section 5.03.     Deposit of Fundamental Change Purchase Price..........15
      Section 5.04.     Notes Purchased in Part...............................15
      Section 5.05.     Covenant to Comply With Securities Laws Upon
                        Purchase of Notes.....................................16
      Section 5.06.     Repayment to the Company..............................16

ARTICLE VI COVENANTS..........................................................16

      Section 6.01.     Treatment of Notes....................................16
      Section 6.02.     Stay, Extension and Usury Laws........................16
      Section 6.03.     Payments for Consent..................................17
      Section 6.04.     Limitation on Leases..................................17

ARTICLE VII SUCCESSOR CORPORATION.............................................17
</TABLE>

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                                                                            PAGE
<S>                                                                         <C>
      Section 7.01.     When Company May Merge or Transfer Assets.............17
      Section 7.02.     Successor Corporation Substituted.....................17

ARTICLE VIII DEFAULTS AND REMEDIES............................................18

      Section 8.01.     Events of Default.....................................18
      Section 8.02.     Acceleration..........................................20
      Section 8.03.     Other Remedies........................................20
      Section 8.04.     Waiver of Past Defaults...............................20
      Section 8.05.     Control by Majority...................................21
      Section 8.06.     Limitation on Suits...................................21
      Section 8.07.     Rights of Holders to Receive Payment..................21
      Section 8.08.     Collection Suit by Trustee............................21
      Section 8.09.     Trustee May File Proofs of Claim......................22
      Section 8.10.     Priorities............................................22
      Section 8.11.     Undertaking for Costs.................................22

ARTICLE IX AMENDMENTS.........................................................23

      Section 9.01.     Without Consent of Holders............................23
      Section 9.02.     With Consent of Holders...............................23
      Section 9.03.     Compliance with Trust Indenture Act...................25
      Section 9.04.     Revocation and Effect of Consents.....................25
      Section 9.05.     Notation on or Exchange of Notes......................25
      Section 9.06.     Trustee to Sign Amendments, etc.......................25

ARTICLE X CONVERSIONS.........................................................26

      Section 10.01.    Conversion Privilege..................................26
      Section 10.02.    Conversion Procedure; Conversion Price;
                        Fractional Shares.....................................28
      Section 10.03.    Non-Convertibility Periods............................29
      Section 10.04.    Adjustment of Conversion Price........................30
      Section 10.05.    Consolidation or Merger of the Company................39
      Section 10.06.    Notice of Adjustment..................................40
      Section 10.07.    Notice in Certain Events..............................41
      Section 10.08.    Company to Reserve Stock; Registration;
                        Listing...............................................41
      Section 10.09.    Taxes on Conversion...................................42
      Section 10.10.    Conversion After Record Date..........................42
      Section 10.11.    Company Determination Final...........................43
      Section 10.12.    Responsibility of Trustee for Conversion
                        Provisions............................................43
      Section 10.13.    Conversion After a Public Acquirer Change of
                        Control...............................................43
      Section 10.14.    Option to Satisfy Conversion Obligation with
                        Cash, Common Stock or Combination Thereof (a).........44

ARTICLE XI MISCELLANEOUS......................................................47

      Section 11.01.    Trust Indenture Act Controls..........................47
      Section 11.02.    Notices...............................................47
</TABLE>

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      Section 11.03.    Communication by Holders with Other Holders...........48
      Section 11.04.    Rules by Trustee and Agents...........................48
      Section 11.05.    No Personal Liability of Directors, Officers,
                        Employees and Stockholders............................48
      Section 11.06.    Governing Law.........................................48
      Section 11.07.    No Adverse Interpretation of Other Agreements.........48
      Section 11.08.    Successors............................................48
      Section 11.09.    Severability..........................................48
      Section 11.10.    Counterpart Originals.................................48
      Section 11.11.    Table of Contents, Headings, etc......................48
      Section 11.12.    Amendment of Section 7.06 of the Original
                        Indenture.............................................49
      Section 11.13.    Recitals by the Corporation...........................49
      Section 11.14.    Ratification and Incorporation of Original
                        Indenture.............................................49
</TABLE>

EXHIBIT A   Form of Note

                                      iii
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            SECOND SUPPLEMENTAL INDENTURE, dated as of November 19, 2004 (the
"Supplemental Indenture"), between Six Flags, Inc., a Delaware corporation (the
"Company") and The Bank of New York, a New York banking corporation, as trustee
(the "Trustee").

                              W I T N E S S E T H:

            WHEREAS, the Company has heretofore entered into an Indenture, dated
as of June 30, 1999 (the "Original Indenture"), with The Bank of New York, as
Trustee;

            WHEREAS, the Original Indenture is incorporated herein by this
reference and the Original Indenture, as may be amended and supplemented to the
date hereof, including by this Supplemental Indenture, is herein called the
"Indenture";

            WHEREAS, under the Original Indenture, a new series of Debt
Securities may at any time be established by the Board of Directors of the
Company in accordance with the provisions of the Original Indenture and the
terms of such series may be described by a supplemental indenture executed by
the Company and the Trustee;

            WHEREAS, the Company hereby proposes to create under the Indenture a
new series of Debt Securities;

            WHEREAS, all conditions necessary to authorize the execution and
delivery of this Supplemental Indenture and to make it a valid and binding
obligation of the Company have been done or performed.

            NOW, THEREFORE, in consideration of the agreements and obligations
set forth herein and for other good and valuable consideration, the sufficiency
of which is hereby acknowledged, the parties hereto hereby agree as follows:

                                    ARTICLE I

                 ESTABLISHMENT OF NEW SERIES OF DEBT SECURITIES

            Section 1.01. Establishment.

            (a) There is hereby established a new series of Debt Securities to
be issued under the Indenture, to be designated as the Company's 4.50%
Convertible Senior Notes due 2015 (the "Notes").

            (b) There are initially to be authenticated and delivered
$260,000,000 (or $299,000,000 if the underwriter's option to purchase additional
Notes is exercised in full) principal amount of Notes (the "Initial Notes").

            (c) The Notes shall be issued initially in the form of one or more
Global Notes in substantially the form set out in Exhibit A hereto. The
Depositary with respect to the Notes
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shall be The Depository Trust Company. The Company initially appoints the
Trustee to act as the Note custodian with respect to the Global Notes.

            (d) Each Note shall bear interest from the date of their original
issuance thereof or from the most recent date to which interest has been paid or
duly provided for.

            (e) If and to the extent that the provisions of the Original
Indenture are duplicative of, or in contradiction with, the provisions of this
Supplemental Indenture, the provisions of this Supplemental Indenture shall
govern.

                                   ARTICLE II

                                   DEFINITIONS

            Section 2.01. Definitions.

            (a) All capitalized terms used herein and not otherwise defined
below shall have the meanings ascribed thereto in the Original Indenture.

            (b) The following are definitions used in this Supplemental
Indenture and to the extent that a term is defined both herein and in the
Original Indenture, the definition in this Supplemental Indenture shall govern.

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

            "Business Day" means, with respect to any Note, a day other than a
Saturday, a Sunday, or a day that in The City of New York, is not a day on which
banking institutions are authorized or required by law, regulation or executive
order to close.

            "Capital Stock" for any Person means any and all shares, interests,
rights to purchase, warrants, options, participations or other equivalents of or
interests in (however designated) equity issued by that Person, including,
without limitation, all common stock and preferred stock.

            "Common Stock" means the Common Stock, $0.025 par value per share,
of the Company existing on the date of the Indenture or any other shares of
Capital Stock of the Company into which such Common Stock shall be reclassified
or changed.

            "Company" means the party named as the "Company" in the first
paragraph of the Indenture and, subject to the provisions of Article VI of this
Supplemental Indenture, shall also include its successors and assigns.

            "Continuing Director" means, as of any date of determination, any
member of the Board of Directors of the Company who:

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                  (i) was a member of the Board of Directors of the Company on
      the date hereof; or

                  (ii) was nominated for election or elected to the Board of
      Directors of the Company with the approval of a majority of the Continuing
      Directors who were members of the Board of Directors at the time of the
      new director's nomination or election.

            "Conversion Price" means initially $6.35, subject to adjustment
pursuant to Article X hereof.

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

            "Fundamental Change" means the occurrence of any of the following:

                  (1) the consummation of any transaction (including without
      limitation, any merger or consolidation) the result of which is that any
      "person" becomes the "beneficial owner" (as this term is used in Rules
      13d-3 and Rule 13d-5 under the Exchange Act), directly or indirectly, of
      more than 35% of the Capital Stock of the Company that is at the time
      entitled to vote by the holder thereof in the election of the Company's
      Board of Directors (or comparable body); or

                  (2) the first day on which a majority of the members of the
      Board of Directors are not Continuing Directors; or

                  (3) the adoption of a plan relating to the liquidation or
      dissolution of the Company; or

                  (4) the Company consolidates or merges with or into any other
      Person, or any sale, lease, transfer, conveyance or other disposition, in
      one or a series of related transactions, of all or substantially all of
      the Company's assets and those of its Subsidiaries taken as a whole to any
      "person" (as such term is used in Section 13(d)(3) of the Exchange Act),
      other than:

                        (A) any transaction: (1) that does not result in any
            reclassification, conversion, exchange or cancellation of
            outstanding shares of the Company's Capital Stock and (2) pursuant
            to which the holders of 50% or more of the total voting power of the
            Company's Capital Stock entitled to vote generally in elections of
            directors immediately prior to the transaction have the right to
            exercise, directly or indirectly, 50% or more of the total voting
            power of all shares of Capital Stock entitled to vote generally in
            elections of directors of the continuing or surviving Person
            immediately after giving effect to such transaction; and

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                        (B) any merger primarily for the purpose of changing the
            Company's jurisdiction of incorporation and resulting in a
            reclassification, conversion or exchange of outstanding shares of
            Common Stock, if at all, solely into shares of common stock of the
            surviving entity, or

                  (5) the termination of trading of the Common Stock, which
      shall be deemed to have occurred if the Common Stock or other common stock
      into which the Notes are convertible is neither listed for trading on a
      United States national securities exchange nor approved for listing on
      Nasdaq or any similar United States system of automated dissemination of
      quotations of securities prices or traded in over-the-counter securities
      markets, and no American Depositary Shares or similar instruments for such
      common stock are so listed or approved for listing in the United States.

            "Global Notes" means Notes that are substantially in the form of the
Notes attached hereto as Exhibit A, and that are registered in the register of
Notes in the name of a Depositary or a nominee thereof.

            "Indenture" has the meaning provided in the recital hereof.

            "Initial Notes" has the meaning assigned to it in Section 1.01(b)
hereof.

            "Interest Payment Date" has the meaning assigned to it in Exhibit A
hereto.

            "Issue Date" means the date the Initial Notes are first issued.

            "Non-Stock Change of Control" means a transaction described under
clause (1) (provided that for purposes of any adjustment pursuant to Section
10.01(b), the reference to 35% in such clause shall be replaced with 50%) or
clause (4) in the definition of Fundamental Change (or in connection with any
such transaction that would have been a Fundamental Change but for the existence
of the 110% Trading Price Exception) pursuant to which 10% or more of the
consideration for Common Stock (other than cash payments for fractional shares,
if applicable, and cash payments made in respect of dissenters' appraisal
rights) in such Fundamental Change transaction consists of cash or securities
(or other property) that are not shares of common stock, depositary receipts or
other certificates representing common equity interests traded or scheduled to
be traded immediately following such transaction on a U.S. national securities
exchange or The Nasdaq National Market.

            "Notes" has the meaning assigned to it in Section 1.01(a) hereof.

            "Original Indenture" has the meaning provided in the recital hereof.

            "Public Acquirer Change of Control" means a Non-Stock Change of
Control in which the acquirer has a class of common stock traded on a U.S.
national securities exchange or quoted on the Nasdaq National Market or that
shall be so traded or quoted when issued or exchanged in connection with such
Non-Stock Change of Control (the "Public Acquirer Common Stock"). If an acquirer
does not itself have a class of common stock satisfying the foregoing
requirement, it shall be deemed to have Public Acquirer Common Stock if a
corporation that directly or indirectly owns at least a majority of the acquirer
has a class of

                                       4
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common stock satisfying the foregoing requirement, in which case all references
to Public Acquirer Common Stock shall refer to such class of common stock.
Majority owned for these purposes means having "beneficial ownership" (as
defined in Rule 13d-3 under the Exchange Act) of more than 50% of the total
voting power of all shares of the respective entity's Capital Stock that are
entitled to vote generally in the election of directors.

            "Public Acquirer Common Stock" has the meaning assigned to it in the
definition of Public Acquirer Change of Control.

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

            (i) the closing sale price (or, if no closing sale price is
      reported, the last reported sale price) of the Common Stock (regular way)
      on the New York Stock Exchange on such date;

            (ii) if the Common Stock is not so reported on any such date, the
      closing sale price as reported in the composite transactions for the
      principal U.S. securities exchange on which such security is so listed;

            (iii) if the Common Stock is not listed on a U.S. national or
      regional securities exchange, the closing sales price as reported by the
      Nasdaq Stock Market, Inc.;

            (iv) if the Common Stock is not so reported, the last price quoted
      by Interactive Data Corporation for the Common Stock on such date or, if
      Interactive Data Corporation is not quoting such price, a similar
      quotation service selected by the Company;

            (v) if the Common Stock is not so quoted, the average of the
      mid-point of the last bid and ask prices for such security on such date
      from at least two dealers recognized as market-makers for such security
      selected by the Company for this purpose; or

            (vi) if the Common Stock is not so quoted, the average of that last
      bid and ask prices for such security on such date from a dealer engaged in
      the trading of convertible securities selected by the Company for this
      purpose.

            "Stated Maturity", when used with respect to any Note, means May 15,
2015.

            "Stockholder Approval" means (i) the authorization and approval by
the Company's stockholders in accordance with applicable law and the Company's
bylaws of an amendment to the Company's restated certificate of incorporation to
increase the

                                       5
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authorized number of shares of Common Stock to at least that number as will
allow it to comply with the third sentence of Section 10.08 (a) hereof and (ii)
the authorization and reservation by the Board of Directors of a sufficient
number of shares of Common Stock free from any preemptive rights to be made
available for issuance by the Company upon conversion of all Outstanding Notes.

            "Trading Day" means a day on which the Common Stock (A) is not
suspended from trading on any national or regional securities exchange or
association or over-the-counter market at the close of business on such day and
(B) has traded at least once on the national or regional securities exchange or
association or over-the-counter market that is the primary market for the
trading of the Common Stock.

            Section 2.02. Other Definitions

<TABLE>
<CAPTION>
                                                                  Section in
                                                                  which the term
Term:                                                             is defined:
----                                                              --------------
<S>                                                               <C>
"110% Trading Price Exception" ...................................5.01(b)
"Additional Notes" ...............................................3.01
"Applicable Stock Price" .........................................10.14(c)
"Cash Amount" ....................................................10.14(c)(iii)
"Conversion Agent" ...............................................3.04
"Conversion Date" ................................................10.02(c)
"Conversion Obligation" ..........................................10.14(a)
"Conversion Period" ..............................................10.14(c)
"Conversion Rate" ................................................10.14(a)
"Conversion Retraction Period" ...................................10.14(b)
"Conversion Value" ...............................................10.14(c)
"Current Market Price" ...........................................10.04(g)
"daily conversion value" .........................................10.14(c)
"distributed assets" .............................................10.04(d)
"Effective Date" .................................................10.01(b)
"Expiration Time" ................................................10.04(f)
"Fair Market Value" ..............................................10.04(g)
"Fundamental Change Purchase Date" ...............................5.01(a)
"Fundamental Change Purchase Notice" .............................5.01(d)
"Fundamental Change Purchase Price" ..............................5.01(a)
"Indebtedness" ...................................................7.01
"non-convertibility period" ......................................10.03
"Non-Electing Share" .............................................10.05
"Record Date" ....................................................10.04(g)
"Reference Period" ...............................................10.04(d)
"Restricted Subsidiary" ..........................................8.01
"Settlement Notice Period" .......................................10.14(a)
"Spin-Off" .......................................................10.04(d)
"Spin-Off Valuation Period" ......................................10.04(d)
"Stock Price" ....................................................10.01(b)
"triggering note" ................................................10.03(a)
</TABLE>

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                                   ARTICLE III

                                    THE NOTES

            Section 3.01 Issuance of Additional Notes. The Company may issue
additional Notes ("Additional Notes") under the Indenture which shall have
identical terms as the Notes issued on the Issue Date other than with respect to
the Issue Date, issue price and, to the extent set forth in the resolution
referred to below, the first payment of interest. The Notes issued on the Issue
Date and any Additional Notes subsequently issued shall be treated as a single
class for all purposes under the Indenture.

            With respect to any Additional Notes, the Company shall set forth in
a resolution of the Board of Directors and an Officers' Certificate, a copy of
each of which shall be delivered to the Trustee, the following information:

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

                  (b) the issue price, the issue date, the date from which the
      Additional Notes shall bear interest and the CUSIP number of such
      Additional Notes.

            Section 3.02 Payments by Company by Wire Transfer. The Company shall
make all interest, premium, if any, and principal payments by wire transfer of
immediately available funds to any Holder who shall have given written
directions to the Company to make such payments by wire transfer pursuant to the
wire transfer instructions supplied to the Company by such Holder on or prior to
the applicable record date.

            Section 3.03 Form and Dating. The terms and provisions contained in
the Notes shall constitute, and are hereby expressly made, a part of this
Supplemental Indenture and the Company and the Trustee, by their execution and
delivery of this Supplemental Indenture, expressly agree to such terms and
provisions and to be bound thereby. However, to the extent any provision of any
Note conflicts with the express provisions of this Supplemental Indenture, the
provisions of this Supplemental Indenture shall govern and be controlling. Notes
shall be dated the date of their authentication.

            Notes issued in global form shall be substantially in the form of
Exhibit A attached hereto (including the Global Note legend set forth below and
the "Schedule of Exchanges of Interests in the Global Note" attached thereto).
Notes issued in definitive form shall be substantially in the form of Exhibit A
attached hereto (but without the Global Note legend thereon and without the
"Schedule of Increases or Decreases in the Global Note" attached thereto). Each
Global Note shall represent such of the Outstanding Notes as shall be specified
therein and each shall provide that it shall represent the aggregate principal
amount of Outstanding Notes from time to time endorsed thereon and that the
aggregate principal amount of Outstanding Notes represented thereby may from
time to time be reduced or increased, as appropriate, to reflect exchanges and
redemptions. Any endorsement of a Global Note to reflect

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the amount of any increase or decrease in the aggregate principal amount of
Outstanding Notes represented thereby shall be made by the Trustee or the Note
custodian, at the direction of the Trustee, in accordance with instructions
given by the Holder thereof.

      Each Global Note shall bear a legend in substantially the following form:

      UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR THE INDIVIDUAL
      SECURITIES REPRESENTED HEREBY, THIS 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.

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

            At such time as all beneficial interests in a particular Global Note
have been exchanged for individual Notes or a particular Global Note has been
redeemed, repurchased or canceled in whole and not in part, each such Global
Note shall be returned to or retained and canceled by the Trustee in accordance
with Section 2.10 of the Original Indenture. At any time prior to such
cancellation, if any beneficial interest in a Global Note is exchanged for or
transferred to a Person who will take delivery thereof in the form of individual
Notes, the principal amount of Notes represented by such Global Note shall be
reduced accordingly and an endorsement shall be made on such Global Note to
reflect such reduction by the Trustee or the Note custodian, at the direction of
the Trustee, in accordance with instructions given by the Holder thereof.

            Section 3.04 Conversion Agent. The Company shall maintain an office
or agency where Notes may be presented for conversion ("Conversion Agent"). The
Company may have one or more additional conversion agents. The term Conversion
Agent includes any additional conversion agent.

            The Company shall enter into an appropriate agency agreement with
any Conversion Agent (if such Conversion Agent is a Person other than the
Trustee). The agreement shall implement the provisions of the 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 Conversion Agent,
the Trustee shall act as such and shall be entitled to appropriate compensation

                                       8
<PAGE>
therefor. The Company or any Subsidiary or an Affiliate of either of them may
act as Conversion Agent.

            The Company initially appoints the Trustee as Conversion Agent in
connection with the Notes.

                                   ARTICLE IV

                               OPTIONAL REDEMPTION

            Section 4.01. Optional Redemption; Notices to Trustee.

                  (a) Except as provided below, on or after May 15, 2010, the
Company may redeem all or part of the Notes upon not less than 20 nor more than
60 days' notice, at the redemption prices (expressed as percentages of principal
amount) set forth below plus accrued and unpaid interest thereon to the
applicable redemption date, if redeemed during the twelve-month period beginning
on May 15 of the years indicated below:

<TABLE>
<CAPTION>
Year                                                                  Percentage
<S>                                                                   <C>
2010..............................................................    102.143%
2011..............................................................    101.714%
2012..............................................................    101.286%
2013..............................................................    100.857%
2014..............................................................    100.429%
2015..............................................................    100.000%
</TABLE>

      The Company may not redeem the Notes if it has failed to pay interest on
the Notes and such failure to pay is continuing.

            (b) The Company shall pay interest on the Notes called for
redemption pursuant to Section 4.01, including those Notes that are converted
into its Common Stock after the date the notice of the redemption is mailed and
prior to the third business day after the redemption date. This interest shall
include interest accrued and unpaid to, but excluding, the redemption date. The
Company shall pay accrued and unpaid interest on the Notes being redeemed to,
but excluding, the redemption date to the same person to whom the Company shall
pay the principal of these notes.

            (c) The Company shall give the notice to the Trustee of its
intention to exercise its right to redeem the Notes as provided for in this
Section 4.01 by a Company Order at least ten Business Days prior to the day the
notice of redemption is to be mailed.

            Section 4.02. Selection of Notes to Be Redeemed. If less than all
the Notes are to be redeemed, unless the procedures of the Depositary provide
otherwise, the Trustee shall select the Notes to be redeemed 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 any stock exchange on
which the Notes are then listed). The Trustee shall make the selection within
five Business Days after it receives the notice provided for in Section 4.01
from Outstanding Notes

                                        9
<PAGE>
not previously called for redemption. The Trustee may select for redemption
portions of the principal amount of Notes that have denominations larger than
$1,000.

      Notes and portions of Notes that the Trustee selects shall be in principal
amounts of $1,000 or an integral multiple of $1,000. Provisions of this
Supplemental Indenture that apply to Notes called for redemption also apply to
portions of Notes called for redemption. The Trustee shall notify the Company
promptly of the Notes or portions of the Notes to be redeemed.

      Notes and portions of Notes that are to be redeemed are convertible by the
Holder until the close of business on the second Business Day prior to the
redemption date unless the Company fails to pay the redemption price on the
redemption date. If any Note selected for partial redemption is converted in
part before termination of the conversion right with respect to the portion of
the Note so selected, the converted portion of such Note shall be deemed (so far
as may be) to be the portion selected for redemption. Notes that have been
converted during a selection of Notes to be redeemed may be treated by the
Trustee as Outstanding for the purpose of such selection.

            Section 4.03. Notice of Redemption. At least 20 days but not more
than 60 days before a redemption date, the Company shall mail or cause to be
mailed, by first class mail, a notice of redemption to each Holder whose Notes
are to be redeemed at its registered address.

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

                  (1) that Holders have a right to convert the Notes called for
      redemption;

                  (2) the redemption date;

                  (3) the redemption price;

                  (4) the Conversion Price;

                  (5) the name and address of the paying agent and Conversion
      Agent;

                  (6) that Notes called for redemption may be converted at any
      time before the close of business on the second Business Day prior to the
      redemption date;

                  (7) that Holders who wish to convert their Notes must satisfy
      the requirements set forth in Section 9 of the Notes;

                  (8) that Notes called for redemption must be surrendered to
      the paying agent to collect the redemption price;

                  (9) if fewer than all of the Outstanding Notes are to be
      redeemed, the certificate numbers, if any, and principal amounts of the
      particular Notes to be redeemed and that, after the redemption date upon
      surrender of such Notes, new Notes in principal

                                       10
<PAGE>
      amount equal to the unredeemed portions shall be issued upon cancellation
      of the original Notes;

                  (10) that, unless the Company defaults in making payment of
      such redemption price, interest on Notes called for redemption shall cease
      to accrue on and after the redemption date;

                  (11) whether the Company elected to deliver its obligation
      upon conversion in cash, a combination of cash and shares of its Common
      Stock or in shares of its Common Stock only, and in the event that the
      Company has elected to deliver all or portion of its Conversion Obligation
      in cash, the date on which the settlement period shall begin; and

                  (12) that no representation is made as to the correctness or
      accuracy of the CUSIP number, if any, listed in such notice or printed on
      the Notes.

            At the Company's request, the Trustee shall give the notice of
redemption in the Company's name and at the Company's expense; provided that the
Company shall have delivered to the Trustee, at least ten Business Days prior to
the date by which such notice of redemption is to be given to Holders in
accordance with this Section 4.03 (or such shorter period as allowed by the
Trustee), an Officers' Certificate requesting that the Trustee give such notice
(in the name and at the expense of the Company) and setting forth the
information to be stated in such notice as provided in the preceding paragraph.

            Section 4.04. Effect of Notice of Redemption. Once notice of
redemption is given in accordance with Section 4.01 hereof, Notes called for
redemption become due and payable on the redemption date and at the redemption
price except for Notes that are converted in accordance with the terms of the
Indenture. A notice of redemption may not be conditional.

            Section 4.05. Deposit of Redemption Price. One Business Day prior to
any redemption date, the Company shall deposit with the Trustee or with the
paying agent money sufficient to pay the redemption price of and, if applicable,
accrued interest on all Notes to be redeemed on that date other than Notes or
portions of Notes called for redemption that on or prior thereto have been
delivered by the Company to the Trustee for cancellation or have been converted.
The Trustee or the paying agent shall promptly return to the Company any money
deposited with the Trustee or the paying agent by the Company in excess of the
amounts necessary to pay the redemption price of, and accrued interest on, all
Notes to be redeemed, because of conversion of Notes or otherwise.

            If the Company complies with the provisions of the preceding
paragraph, on and after the redemption date, interest shall cease to accrue on
the Notes or the portions of Notes called for redemption.

            Section 4.06. Notes Redeemed in Part. Upon surrender of a Note that
is redeemed in part, the Company shall issue and, upon the Company's written
request, the Trustee shall authenticate for the Holder at the expense of the
Company a new Note equal in principal amount to the unredeemed portion of the
Note surrendered.

                                       11
<PAGE>

                                   ARTICLE V
                    PURCHASE OF NOTES AT OPTION OF THE HOLDER
                            UPON FUNDAMENTAL CHANGE

                  Section 5.01. Fundamental Change Offer.

                  (a) If a Fundamental Change occurs at any time prior to the
Stated Maturity (subject to certain exceptions set forth below), the Notes not
previously purchased or redeemed by the Company shall be purchased by the
Company for cash, at the option of the Holder thereof, at a purchase price
specified in Section 7 of the Notes (the "Fundamental Change Purchase Price"),
as of the date that is between 30 and 60 days after the date of a notice of
Fundamental Change delivered by the Company pursuant to Section 5.01(b) (the
"Fundamental Change Purchase Date"), subject to satisfaction by or on behalf of
the Holder of the requirements set forth in Section 5.01(c).

                  (b) Notwithstanding the provisions of Section 5.01(a) or (c),
the Company shall not be required to purchase the Notes of the Holders upon a
Fundamental Change pursuant to this Section 5.01 (and a Fundamental Change shall
be deemed not to have occurred) or give notice of such Fundamental Change if:

                           (i) the Sale Price per share of Common Stock for any
         five Trading Days within (1) the period of 10 consecutive Trading Days
         ending immediately after the later of the Fundamental Change or the
         public announcement of the Fundamental Change, in the case of a
         Fundamental Change under clause (1) or (2) of the definition of
         "Fundamental Change" above, or (2) the period of 10 consecutive Trading
         Days ending immediately before the Fundamental Change, in the case of a
         Fundamental Change under clause (3) or (4) of the definition of
         "Fundamental Change" above, equals or exceeds 110% of the Conversion
         Price of the Notes in effect on each of those five Trading Days (the
         "110% Trading Price Exception"); or

                           (ii) 90% or more of the consideration in the
         transaction or transactions (other than cash payments for fractional
         shares, if applicable, and cash payments made in respect of dissenters'
         appraisal rights) which otherwise would constitute a Fundamental Change
         under clause (i) or (iv) above consists of shares of common stock,
         depositary receipts or other certificates representing common equity
         interests traded or to be traded immediately following such transaction
         on a national securities exchange or quoted on the Nasdaq National
         Market, and, as a result of the transaction or transactions, the Notes
         become convertible solely into such Common Stock, depositary receipts
         or other certificates representing common equity interests (and any
         rights attached thereto).

                  (c) No later than 30 days after the occurrence of a
Fundamental Change, the Company shall mail a written notice of the Fundamental
Change by first class mail to the Trustee and to each Holder (and to beneficial
owners as required by applicable law). The notice shall include a form of
Fundamental Change Purchase Notice to be completed by the Holder and shall
state:

                                       12

<PAGE>

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

                           (2) the date by which the Fundamental Purchase Notice
         pursuant to this Section 3.07 must be delivered to the paying agent in
         order for a Holder to exercise the repurchase rights;

                           (3) the Fundamental Change Purchase Date;

                           (4) the Fundamental Change Purchase Price;

                           (5) the name and address of the paying agent and the
         Conversion Agent;

                           (6) the Conversion Price and any adjustments thereto;

                           (7) that the Notes as to which a Fundamental Purchase
         Notice has been given may be converted if they are otherwise
         convertible pursuant to Article X hereof only if the Fundamental Change
         Purchase Notice has been withdrawn in accordance with the terms of the
         Indenture;

                           (8) that the Notes must be surrendered to the paying
         agent to collect payment;

                           (9) that the Fundamental Change Purchase Price for
         any Note as to which a Fundamental Change Purchase Notice has been duly
         given and not withdrawn shall be paid promptly following the later of
         the Fundamental Change Purchase Date and the time of surrender of such
         Note as described in clause (8) above;

                           (10) briefly, the procedures the Holder must follow
         to exercise rights under this Section 3.07;

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

                           (12) the procedures for withdrawing a Fundamental
         Change Purchase Notice;

                           (13) that, unless the Company defaults in making
         payment of such Fundamental Change Purchase Price, interest, if any, on
         Notes surrendered for purchase by the Company shall cease to accrue on
         and after the Fundamental Change Purchase Date; and

                           (14) the CUSIP numbers of the Notes.

Without otherwise limiting the Company's obligations pursuant to this Section
5.01 in any way, the Company shall also issue a press release through Dow Jones
& Company, Inc. containing the information set forth above and otherwise make
such information available on the Company's web site or through another public
medium as the Company may use at that time.

                                       13

<PAGE>

                  (d) A Holder may exercise its rights specified in Section
5.01(a) upon delivery of a written notice of purchase (a "Fundamental Change
Purchase Notice") to the paying agent at any time on or prior to the close of
business on the second Business Day preceding the Fundamental Change Purchase
Date (unless the Company shall specify a later date), specifying:

                           (1) the certificate number of the Note, if
         certificated, which the Holder shall deliver to be purchased or, if not
         certificated, the notice must comply with the appropriate depositary
         procedures;

                           (2) the portion of the principal amount of the Note
         which the Holder shall deliver to be purchased, which portion must be
         $1,000 or an integral multiple of $1,000; and

                           (3) that such Note shall be purchased pursuant to the
         terms and conditions specified in Section 6 of the Notes and in the
         Indenture.

                  The delivery of such Note to the paying agent with the
Fundamental Change Purchase Notice (together with all necessary endorsements) at
the offices of the paying agent shall be a condition to the receipt by the
Holder of the Fundamental Change Purchase Price therefor; provided, however,
that such Fundamental Change Purchase Price shall be so paid pursuant to this
Section 5.01 and Section 5.02 only if the Note so delivered to the paying agent
shall conform in all respects to the description thereof set forth in the
related Fundamental Change Purchase Notice.

                  The Company shall purchase from the Holder thereof, pursuant
to this Section 5.01 and Section 5.02, a portion of a Note if the principal
amount of such portion is $1,000 or an integral multiple of $1,000. Provisions
of this Supplemental Indenture that apply to the purchase of all of a Note also
apply to the purchase of such portion of such Note.

                  Any purchase by the Company contemplated pursuant to the
provisions of this Section 5.01 and Section 5.02 shall be consummated by the
delivery of the consideration to be received by the Holder.

                  Notwithstanding anything herein to the contrary, any Holder
delivering to the paying agent the Fundamental Change Purchase Notice
contemplated by this Section 5.01(d) shall have the right to withdraw such
Fundamental Change Purchase Notice, in whole or in part, at any time prior to
the close of business on the Fundamental Change Purchase Date by delivery of a
written notice of withdrawal to the paying agent in accordance with Section
5.02.

                  The paying agent shall promptly notify the Company of the
receipt by it of any Fundamental Change Purchase Notice or written withdrawal
thereof.

                  Section 5.02. Effect of Fundamental Change Purchase Notice;
Withdrawal. Upon receipt by the paying agent of the Fundamental Change Purchase
Notice specified in Section 5.01(c), the Holder of the Note in respect of which
such Fundamental Change Purchase Notice was given shall (unless such Fundamental
Change Purchase Notice is withdrawn as specified in the following two
paragraphs) thereafter be entitled to receive solely the Fundamental Change
Purchase Price with respect to such Note. Such Fundamental Change

                                       14

<PAGE>

Purchase Price shall be paid to such Holder, subject to the receipt of funds by
the paying agent, promptly following the later of (x) the Fundamental Change
Purchase Date with respect to such Note (provided the conditions in Section
5.01(c) have been satisfied) and (y) the time of delivery of such Note to the
paying agent by the Holder thereof in the manner required by Section 5.01(c).
Notes in respect of which a Fundamental Change Purchase Notice has been given by
the Holder thereof may not be converted pursuant to Article IX hereof on or
after the date of the delivery of such Fundamental Change Purchase Notice unless
such Fundamental Change Purchase Notice has first been validly withdrawn as
specified in the following two paragraphs.

         A Fundamental Change Purchase Notice may be withdrawn by means of a
written notice of withdrawal delivered to the office of the paying agent in
accordance with the Fundamental Change Purchase Notice, at any time prior to the
close of business on the Fundamental Change Purchase Date, specifying:

                           (1) the certificate number, if any, of the Note in
         respect of which such notice of withdrawal is being submitted, or, if
         not certificated, the notice must comply with the appropriate
         depositary procedures,

                           (2) the principal amount of the Note with respect to
         which such notice of withdrawal is being submitted, and

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

                  There shall be no purchase of any Notes pursuant to Section
5.01 if there has occurred (prior to, on or after, as the case may be, the
giving, by the Holders of such Notes, of the required Fundamental Change
Purchase Notice) and is continuing an Event of Default (other than a default in
the payment of the Fundamental Change Purchase Price with respect to such
Notes). The paying agent shall promptly return to the respective Holders thereof
any Notes (x) with respect to which a Fundamental Change Purchase Notice has
been withdrawn in compliance with the Indenture, or (y) held by it during the
continuance of an Event of Default (other than a default in the payment of the
Fundamental Change Purchase Price with respect to such Notes) in which case,
upon such return, the Purchase Notice with respect thereto shall Fundamental
Change be deemed to have been withdrawn.

                  Section 5.03. Deposit of Fundamental Change Purchase Price.
Prior to 10:00 a.m., New York City time, on the Business Day following the
Fundamental Change Purchase Date, the Company shall deposit with the Trustee or
with the paying agent (or, if the Company or a Subsidiary or an Affiliate of
either of them is acting as the paying agent, shall segregate and hold in trust
as provided in Section 4.03 of the Original Indenture) an amount of cash (in
immediately available funds if deposited on such Business Day) sufficient to pay
the aggregate Fundamental Change Purchase Price of all the Notes or portions
thereof which are to be purchased as of the Fundamental Change Purchase Date.

                  Section 5.04. Notes Purchased in Part. Any Certificated Note
which is to be purchased only in part shall be surrendered at the office of the
paying agent (with, if the

                                       15

<PAGE>

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 Note, without service charge, a new Note or Notes, 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
Note so surrendered which is not purchased.

                  Section 5.05. Covenant to Comply With Securities Laws Upon
Purchase of Notes. When complying with the provisions of Section 5.01 (provided
that such offer or purchase constitutes an "issuer tender offer" for purposes of
Rule 13e-4 (which term, as used herein, includes any successor provision
thereto) under the Exchange Act at the time of such offer or purchase), and
subject to any exemptions available under applicable law, the Company shall, to
the extent appropriate, (i) comply with Rule 13e-4 and Rule 14e-1 (or any
successor provision) under the Exchange Act, (ii) file the related Schedule TO
(or any successor schedule, form or report) under the Exchange Act, and (iii)
otherwise comply with all Federal and state securities laws so as to permit the
rights and obligations under Section 5.01 to be exercised in the time and in the
manner specified in Section 5.01.

                  Section 5.06. Repayment to the Company. The Trustee and the
paying agent shall return to the Company any cash that remains unclaimed as
provided in Section 11 of the Notes, together with interest or dividends, if
any, thereon (subject to the provisions of Section 7.05 of the Original
Indenture), held by them for the payment of the Fundamental Change Purchase
Price; provided, however, that to the extent that the aggregate amount of cash
deposited by the Company pursuant to Section 5.02(3) exceeds the aggregate
Fundamental Change Purchase Price of the Notes or portions thereof which the
Company is obligated to purchase as of the Fundamental Change Purchase Date,
then, unless otherwise agreed in writing with the Company, promptly after the
Business Day following the Fundamental Change Purchase Date, the Trustee shall
return any such excess to the Company together with interest thereon (subject to
the provisions of Section 7.05 of the Original Indenture).

                                   ARTICLE VI

                                    COVENANTS

                  Section 6.01. Treatment of Notes. Each Holder, by acceptance
of a Note, and beneficial owner, by acceptance of a beneficial ownership
interest in a Note, agrees to treat the Notes as indebtedness of the Company for
U.S. federal income tax purposes and not to take any action inconsistent with
such treatment.

                  Section 6.02. Stay, Extension and Usury Laws. The Company
covenants (to the extent that it may lawfully do so) that it shall not at any
time insist upon, plead, or in any manner whatsoever claim or take the benefit
or advantage of, any stay, extension or usury law wherever enacted, now or at
any time hereafter in force, that may affect the covenants or the performance of
the Indenture, and the Company hereby expressly waives all benefit or advantage
of any such law, and covenants that it shall not, by resort to any such law,
hinder, delay or impede the

                                       16

<PAGE>

execution of any power herein granted to the Trustee, but shall suffer and
permit the execution of every such power as though no such law has been enacted.

                  Section 6.03. Payments for Consent. The Company shall not, and
shall not permit any of its Subsidiaries to, directly or indirectly, pay or
cause to be paid any consideration, whether by way of interest, fee or
otherwise, to any Holder of any Notes for or as an inducement to any consent,
waiver or amendment of any of the terms or provisions of the Indenture or the
Notes unless such consideration is offered to be paid or is paid to all Holders
of the Notes that consent, waive or agree to amend in the time frame set forth
in the solicitation documents relating to such consent, waiver or agreement.

                  Section 6.04. Limitation on Leases. The Company shall not,
directly or indirectly, lease all or substantially all of its assets to any
Person.

                                  ARTICLE VII

                              SUCCESSOR CORPORATION

                  Section 7.01. When Company May Merge or Transfer Assets. The
Company shall not consolidate with or merge with or into (whether or not the
Company is the surviving corporation), or sell, assign, transfer, convey or
otherwise dispose of all or substantially all of its properties and assets in
one or more related transactions to, another corporation, Person or entity
unless:

                           (i) either (1) the Company shall be the surviving
                  corporation or (2) the entity or the Person formed by or
                  surviving the consolidation or merger (if other than the
                  Company) or to which the sale, assignment, transfer,
                  conveyance or other disposition shall have been made (i) is a
                  corporation organized or existing under the laws of the United
                  States or any State thereof or the District of Columbia and
                  (ii) shall expressly assume, by an indenture supplemental
                  hereto, executed and delivered to the Trustee, in form
                  reasonably satisfactory to the Trustee, all of the obligations
                  of the Company under the Notes and the Indenture;

                           (ii) immediately after giving effect to such
                  transaction, no Default or Event of Default exists; and

                           (iii) the Company shall have delivered to the Trustee
                  an Officers' Certificate and an Opinion of Counsel, each
                  stating that such consolidation, merger, sale, assignment,
                  transfer, conveyance or other disposition and, if a
                  supplemental indenture is required in connection with such
                  transaction, such supplemental indenture, complies with this
                  Article VII and that all conditions precedent herein provided
                  for relating to such transaction have been satisfied.

                  Section 7.02. Successor Corporation Substituted. Upon any
consolidation or merger, or any sale, assignment, transfer, lease, conveyance or
other disposition of all or

                                       17

<PAGE>

substantially all of the assets of the Company in accordance with Section 7.01
hereof, the successor corporation formed by such consolidation or into or with
which the Company is merged or to which such sale, assignment, transfer, lease,
conveyance or other disposition is made shall succeed to, and be substituted for
(so that from and after the date of such consolidation, merger, sale, lease,
conveyance or other disposition, the provisions of the Indenture referring to
the "Company" shall refer instead to the successor corporation and not to the
Company), and may exercise every right and power of the Company under the
Indenture with the same effect as if such successor Person had been named as the
Company herein; provided, however, that the predecessor Company shall not be
relieved from the obligation to pay the principal of and interest on the Notes
except in the case of a sale of all of the Company's assets that meets the
requirements of Section 7.01 hereof.

                                  ARTICLE VIII

                              DEFAULTS AND REMEDIES

                  Section 8.01. Events of Default. An "Event of Default" occurs
if:

                           (a) the Company defaults in the payment when due of
         interest on the Notes and such default continues for a period of 30
         days;

                           (b) the Company defaults in the payment when due of
         principal of or premium, if any, on the Notes when the same becomes due
         and payable at maturity, upon redemption (including in connection with
         a Fundamental Change) or otherwise;

                           (c) the Company fails to comply for (i) a period of
         30 days, with the provisions of Section 5.01 hereof (other than a
         failure to purchase Notes, which is covered by clause (b) above), or
         (ii) 30 days after notice to the Company by the Trustee or the Holders
         of at least 25% in aggregate principal amount of the Notes then
         Outstanding voting as a single class, with the provisions of Section
         7.01 hereof;

                           (d) the Company fails to observe or perform any other
         covenant, representation, warranty or other agreement in the Indenture
         or the Notes for 60 days after notice to the Company by the Trustee or
         the Holders of at least 25% in aggregate principal amount of the Notes
         then Outstanding voting as a single class;

                           (e) the Company or any of its Restricted Subsidiaries
         fails to pay Indebtedness within any applicable grace period after
         final maturity or the acceleration of any Indebtedness by the holders
         thereof because of a default and the total amount of such Indebtedness
         unpaid or accelerated at any time exceeds $20.0 million;

                           (f) a final judgment or final judgments for the
         payment of money are entered by a court or courts of competent
         jurisdiction against the Company or any of its Restricted Subsidiaries
         and such judgment or judgments are not paid, discharged or stayed for a
         period (during which execution shall not be effectively stayed) of 60
         days, provided that the aggregate of all such undischarged judgments
         exceeds $20.0 million; and

                                       18

<PAGE>

                           (g) the Company or any Restricted Subsidiary that
         constitutes a Significant Subsidiary or any group of Restricted
         Subsidiaries that, taken as a whole, would constitute a Significant
         Subsidiary pursuant to or within the meaning of Bankruptcy Law:

                                (i) commences a voluntary case,

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

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

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

                                (v) generally is not paying its debts as they
               become due; or

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

                                (i) is for relief against the Company or any
               Restricted Subsidiary that constitutes a Significant Subsidiary
               or any group of Restricted Subsidiaries that, taken as a whole,
               would constitute a Significant Subsidiary in an involuntary case;

                                (ii) appoints a custodian of the Company or any
               Restricted Subsidiary that constitutes a Significant Subsidiary
               or any group of Restricted Subsidiaries that, taken as a whole,
               would constitute a Significant Subsidiary or for all or
               substantially all of the property of the Company or any
               Restricted Subsidiary that constitutes a Significant Subsidiary
               or any group of Restricted Subsidiaries that, taken as a whole,
               would constitute a Significant Subsidiary; or

                                (iii) orders the liquidation of the Company or
               any Restricted Subsidiary that constitutes a Significant
               Subsidiary or any group of Restricted Subsidiaries that, taken as
               a whole, would constitute a Significant Subsidiary;

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

                  "Indebtedness" has the meaning provided in the Indenture dated
as of December 5, 2003 between the Company and The Bank of New York, as Trustee,
as in effect as of the date hereof.

                  "Restricted Subsidiary" means (i) any Subsidiary with respect
to which an event described in clause (e) or (f) above would cause a default in
any of the Company's existing and future unsubordinated, unsecured indebtedness
and (ii) any Significant Subsidiary of the Company.

                                       19

<PAGE>

                  Section 8.02. Acceleration. If any Event of Default (other
than an Event of Default specified in clause (g) or (h) of Section 8.01 hereof
with respect to the Company, any Restricted Subsidiary that constitutes a
Significant Subsidiary or any group of Restricted Subsidiaries that, taken as a
whole, would constitute a Significant Subsidiary), occurs and is continuing,
either the Trustee or the Holders of at least 25% in aggregate principal amount
of the Notes then Outstanding may declare all the Notes to be due and payable
immediately. Upon any such declaration, the Notes shall become due and payable
immediately. Notwithstanding the foregoing, if an Event of Default specified in
clause (g) or (h) of Section 8.01 hereof occurs with respect to the Company, any
Restricted Subsidiary that constitutes a Significant Subsidiary or any group of
Restricted Subsidiaries that, taken as a whole, would constitute a Significant
Subsidiary, all Outstanding Notes shall become due and payable without further
action or notice. The Holders of a majority in aggregate principal amount of the
then Outstanding Notes by written notice to the Trustee may on behalf of all of
the Holders rescind an acceleration and its consequences if the rescission would
not conflict with any judgment or decree and if all existing Events of Default
(except nonpayment of principal, interest or premium that has become due solely
because of the acceleration) have been cured or waived.

         If an Event of Default occurs on or after May 15, 2010 by reason of any
willful action or inaction taken or not taken by or on behalf of the Company
with the intention of avoiding payment of the premium that the Company would
have had to pay if the Company then had elected to redeem the Notes pursuant to
Section 4.01(a) hereof, then, upon acceleration of the Notes, an equivalent
premium shall also become and be immediately due and payable, to the extent
permitted by law, anything in the Indenture or in the Notes to the contrary
notwithstanding. If an Event of Default occurs prior to May 15, 2010 by reason
of any willful action or inaction taken or not taken by or on behalf of the
Company with the intention of avoiding the prohibition on redemption of the
Notes prior to such date, then, upon acceleration of the Notes, the premium
specified for the twelve months commencing on such date in Article IV hereof
shall also become and be immediately due and payable to the extent permitted by
law.

                  Section 8.03. Other Remedies. If an Event of Default occurs
and is continuing, the Trustee may pursue any available remedy to collect the
payment of principal, premium and interest on the Notes or to enforce the
performance of any provision of the Notes or this Indenture.

         The Trustee may maintain a proceeding even if it does not possess any
of the Notes or does not produce any of them in the proceeding. A delay or
omission by the Trustee or any Holder of a Note in exercising any right or
remedy accruing upon an Event of Default shall not impair the right or remedy or
constitute a waiver of or acquiescence in the Event of Default. All remedies are
cumulative to the extent permitted by law.

                  Section 8.04. Waiver of Past Defaults. Holders of not less
than a majority in aggregate principal amount of the then Outstanding Notes by
notice to the Trustee may on behalf of the Holders of all of the Notes waive any
existing Default or Event of Default and its consequences hereunder, except a
continuing Default or Event of Default in the payment of the principal of,
premium or interest on, the Notes (including in connection with an offer to
purchase in connection with any Fundamental Change); provided, however, that the
Holders of a majority in aggregate principal amount of the then Outstanding
Notes may rescind an acceleration and its

                                       20

<PAGE>

consequences, including any related payment default that resulted from such
acceleration. Upon any such waiver, such Default shall cease to exist, and any
Event of Default arising therefrom shall be deemed to have been cured for every
purpose of the Indenture, but no such waiver shall extend to any subsequent or
other Default or impair any right consequent thereon.

                  Section 8.05. Control by Majority. Holders of a majority in
principal amount of the then Outstanding Notes may direct the time, method and
place of conducting any proceeding for exercising any remedy available to the
Trustee or exercising any trust or power conferred on it. However, the Trustee
may refuse to follow any direction that conflicts with law or the Indenture that
the Trustee determines may be unduly prejudicial to the rights of other Holders
or that may involve the Trustee in personal liability.

                  Section 8.06. Limitation on Suits. A Holder of a Note may
pursue a remedy with respect to the Indenture or the Notes only if:

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

                  (b) the Holders of at least 25% in principal amount of the
then Outstanding Notes make a written request to the Trustee to pursue the
remedy;

                  (c) such Holder of a Note or Holders offer and, if requested,
provide to the Trustee indemnity satisfactory to the Trustee against any loss,
liability or expense;

                  (d) the Trustee does not comply with the request within 60
days after receipt of the request and the offer and, if requested, the provision
of indemnity; and

                  (e) during such 60-day period the Holders of a majority in
aggregate principal amount of the then Outstanding Notes do not give the Trustee
a direction inconsistent with the request.

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

                  Section 8.07. Rights of Holders to Receive Payment.
Notwithstanding any other provision of the Indenture, the right of any Holder of
a Note to receive payment of principal, premium and interest on the Note, on or
after the respective due dates expressed in the Note (including in connection
with an offer to purchase in connection with any Fundamental Change), or to
bring suit for the enforcement of any such payment on or after such respective
dates, shall not be impaired or affected without the consent of such Holder.

                  Section 8.08. Collection Suit by Trustee. If an Event of
Default specified in Section 8.01(a) or (b) hereof occurs and is continuing, the
Trustee is authorized to recover judgment in its own name and as trustee of an
express trust against the Company for the whole amount of principal of, premium
on and interest remaining unpaid on the Notes and interest on overdue principal
and, to the extent lawful, interest and such further amount as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.

                                       21

<PAGE>

                  Section 8.09. Trustee May File Proofs of Claim. The Trustee is
authorized to file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including any
claim for the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel) and the Holders of the Notes allowed in any
judicial proceedings relative to the Company (or any other obligor upon the
Notes), its creditors or its property and shall be entitled and empowered to
collect, receive and distribute any money or other property payable or
deliverable on any such claims and any custodian in any such judicial proceeding
is hereby authorized by each Holder to make such payments to the Trustee, and in
the event that the Trustee shall consent to the making of such payments directly
to the Holders, to pay to the Trustee any amount due to it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 7.06 of the
Original Indenture. To the extent that the payment of any such compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, and
any other amounts due the Trustee under Section 7.06 of the Original Indenture
out of the estate in any such proceeding, shall be denied for any reason,
payment of the same shall be secured by a Lien on, and shall be paid out of, any
and all distributions, dividends, money, securities and other properties that
the Holders may be entitled to receive in such proceeding whether in liquidation
or under any plan of reorganization or arrangement or otherwise. Nothing herein
contained shall be deemed to authorize the Trustee to authorize or consent to or
accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Notes or the rights of any Holder, or to
authorize the Trustee to vote in respect of the claim of any Holder in any such
proceeding.

                  Section 8.10. Priorities. If the Trustee collects any money
pursuant to this Article, it shall pay out the money in the following order:

                  FIRST: to the Trustee, its agents and attorneys for amounts
due under Section 7.06 of the Original Indenture, including payment of all
compensation, expense and liabilities incurred, and all advances made, by the
Trustee and the costs and expenses of collection;

                  SECOND: to Holders for amounts due and unpaid on the Notes for
principal, premium, if any, and interest, ratably, without preference or
priority of any kind, according to the amounts due and payable on the Notes for
principal, premium, if any, and interest, respectively; and

                  THIRD: to the Company or to such party as a court of competent
jurisdiction shall direct in writing.

                  Section 8.11. Undertaking for Costs. In any suit for the
enforcement of any right or remedy under the Indenture or in any suit against
the Trustee for any action taken or omitted by it as a trustee, a court in its
discretion may require the filing by any party litigant (other than the Trustee)
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 of a
Note pursuant to Section 8.07 of this Supplemental Indenture or a suit by
Holders of more than 10% in aggregate principal amount of the Notes then
Outstanding.

                                       22

<PAGE>

                                   ARTICLE IX

                                   AMENDMENTS

                  Section 9.01. Without Consent of Holders. Notwithstanding
Section 9.02 of this Supplemental Indenture, the Company and the Trustee may
amend or supplement the Indenture or the Notes without the consent of any Holder
of a Note:

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

                           (b) to provide for uncertificated Notes in addition
         to or in place of certificated Notes;

                           (c) to provide for the assumption of the Company's
         obligations to the Holders of Notes by a successor to the Company
         pursuant to Article VII hereof;

                           (d) to make any change that would provide any
         additional rights or benefits to the Holders of the Notes or that does
         not adversely affect the legal rights under the Indenture of any Holder
         of the Notes;

                           (e) to comply with the requirements of the Securities
         and Exchange Commission in order to effect or maintain the
         qualification of the Indenture under the Trust Indenture Act;

                           (f) to provide for conversion rights of Holders of
         Notes if any reclassification or change of Common Stock or any
         consolidation, merger or disposition of all or substantially all of the
         Company's assets occurs; or

                           (g) to reduce the Conversion Price, provided that the
         reduction shall not adversely affect the interests of the Holders of
         the Notes.

                  Upon the request of the Company accompanied by a resolution of
its Board of Directors authorizing the execution of any such amended or
supplemental Indenture, and upon receipt by the Trustee of the documents
described in Section 7.02 of the Original Indenture, the Trustee shall join with
the Company in the execution of any amended or supplemental Indenture authorized
or permitted by the terms of this Supplemental Indenture and to make any further
appropriate agreements and stipulations that may be therein contained, but the
Trustee shall not be obligated to enter into such amended or supplemental
Indenture that adversely affects its own rights, duties or immunities under the
Indenture or otherwise.

                  Section 9.02. With Consent of Holders. Except as provided
below in this Section 9.02 and in Section 9.01, the Company and the Trustee may
amend or supplement the Indenture and the Notes may be amended or supplemented
with the consent of the Holders of at least a majority in principal amount of
the Notes then Outstanding voting as a single class (including, without
limitation, consents obtained in connection with a purchase of, or tender offer
or exchange offer for, the Notes), and, subject to Section 8.04 and 8.07 hereof,
any existing Default or Event of Default (other than a Default or Event of
Default in the payment of the

                                       23

<PAGE>

principal of, premium, if any, or interest on the Notes, except a payment
default resulting from an acceleration that has been rescinded) or compliance in
a particular instance by the Company with any provision of the Indenture or the
Notes may be waived with the consent of the Holders of a majority in principal
amount of the then Outstanding Notes voting as a single class (including,
without limitation, consents obtained in connection with a purchase of, or
tender offer or exchange offer for, the Notes).

                  Upon the request of the Company accompanied by a resolution of
its Board of Directors authorizing the execution of any such amended or
supplemental Indenture, and upon the filing with the Trustee of evidence
satisfactory to the Trustee of the consent of the Holders as aforesaid, and upon
receipt by the Trustee of the documents described in Section 7.02 of the
Original Indenture, the Trustee shall join with the Company in the execution of
such amended or supplemental Indenture unless such amended or supplemental
Indenture directly adversely affects the Trustee's own rights, duties or
immunities under the Indenture or otherwise, in which case the Trustee may in
its discretion, but shall not be obligated to, enter into such amended or
supplemental Indenture.

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

         After an amendment, supplement or waiver under this Section 9.02
becomes effective, the Company shall mail to the Holders affected thereby a
notice briefly describing the amendment, supplement or waiver. Any failure of
the Company to mail such notice, or any defect therein, shall not, however, in
any way impair or affect the validity of any such amended or supplemental
Indenture or waiver.

                  Notwithstanding the foregoing, without the consent of each
Holder affected, an amendment or waiver under this Section 9.02 may not (with
respect to any Notes held by a non-consenting Holder):

                           (a) reduce the principal amount of Notes whose
         Holders must consent to an amendment, supplement or waiver;

                           (b) reduce the principal of or change the fixed
         maturity of any Note or alter any of the provisions with respect the
         redemption of the Notes;

                           (c) reduce the rate of or change the time for payment
         of interest on any Note;

                           (d) waive a Default or Event of Default in the
         payment of principal of or premium, if any, or interest on the Notes
         (except a rescission of acceleration of the Notes by the Holders of at
         least a majority in aggregate principal amount of the then Outstanding
         Notes and a waiver of the payment default that resulted from such
         acceleration);

                           (e) make any Notes payable in money other than that
         stated in the Notes;

                                       24

<PAGE>

                           (f) make any changes in the provisions of the
         Indenture relating to waivers of past defaults or the rights of Holder
         of Notes to receive payments of principal of or premium, if any, or
         interest on the Notes;

                           (g) waive a redemption payment with respect to any
         Note;

                           (h) adversely affect the repurchase or conversion
         rights of Holders of the Notes; or

                           (i) make any change in Section 8.04 or Section 8.07
         hereof or in the foregoing amendment and waiver provisions.

                  Section 9.03. Compliance with Trust Indenture Act. Every
amendment or supplement to this Indenture or the Notes shall be set forth in an
amended or supplemental Indenture that complies with the Trust Indenture Act as
then in effect.

                  Section 9.04. Revocation and Effect of Consents. Until an
amendment, supplement or waiver becomes effective, a consent to it by a Holder
of a Note is a continuing consent by the Holder of a Note and every subsequent
Holder of a Note or portion of a Note that evidences the same debt as the
consenting Holder's Note, even if notation of the consent is not made on any
Note. However, any such Holder of a Note or subsequent Holder of a Note may
revoke the consent as to its Note if the Trustee receives written notice of
revocation before the date the waiver, supplement or amendment becomes
effective. An amendment, supplement or waiver becomes effective in accordance
with its terms and thereafter binds every Holder.

                  Section 9.05. Notation on or Exchange of Notes. The Trustee
may place an appropriate notation about an amendment, supplement or waiver on
any Note thereafter authenticated. The Company in exchange for all Notes may
issue and the Trustee shall, upon receipt of an Authentication Order,
authenticate new Notes that reflect the amendment, supplement or waiver.

                  Failure to make the appropriate notation or issue a new Note
shall not affect the validity and effect of such amendment, supplement or
waiver.

                  Section 9.06. Trustee to Sign Amendments, etc. The Trustee
shall sign any amended or supplemental Indenture authorized pursuant to this
Article IX if the amendment or supplement does not adversely affect the rights,
duties, liabilities or immunities of the Trustee. The Company may not sign an
amendment or supplemental Indenture until the Board of Directors approves it. In
executing any amended or supplemental indenture, the Trustee shall be provided
with and (subject to Section 7.01 of the Original Indenture) shall be fully
protected in relying upon, in addition to the documents required by Section
13.05 of the Original Indenture, an Officer's Certificate and an Opinion of
Counsel stating that the execution of such amended or supplemental indenture is
authorized or permitted by the Indenture.

                                       25
<PAGE>
                                    ARTICLE X

                                   CONVERSIONS

            Section 10.01. Conversion Privilege

            (a) Subject to and upon compliance with the provisions of this
Article X, a Holder of a Note 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 Note at the Conversion Price in effect on
the date of conversion, at any time prior to the close of business on the
Business Day prior to the Stated Maturity of the Notes, except during any
non-convertibility period described in Section 10.03. The Company may choose to
deliver either shares of Common Stock, cash or a combination of cash and shares
of Common Stock as described in Section 10.14.

            (b) Subject to Section 10.13, if and only to the extent a Holder
elects to convert a Note at any time on or subsequent to the date on which a
Non-Stock Change of Control becomes effective (the "Effective Date") but before
the close of business on the second business day immediately preceding the
related Fundamental Change Purchase Date, the Company shall increase the number
of shares of Common Stock issuable upon conversion of the Note by a number of
additional shares of Common Stock as set forth below. The number of additional
shares of Common Stock shall be determined by reference to the table below,
based on the Effective Date and the price (the "Stock Price") paid per share for
the Common Stock in the Non-Stock Change of Control. If Holders of Common Stock
receive only cash in the Non-Stock Change of Control, the Stock Price shall be
the Cash Amount paid per share. Otherwise, the Stock Price shall be the average
of the Sale Prices of the Common Stock on the five Trading Days prior to but not
including the Effective Date of such Non-Stock Change of Control.

            The Stock Prices and numbers of additional shares of Common Stock
set forth in the table below shall be adjusted as of any date on which the
Conversion Price is adjusted. On such date, each Stock Price shall be adjusted
by multiplying:

                  (i) the Stock Price applicable immediately prior to such
            adjustment by

                  (ii) a fraction, of which

                        (A) the numerator shall be the Conversion Price as so
            adjusted, and

                        (B) the denominator shall be the Conversion Price
            immediately prior to the adjustment,

and each number of additional shares of Common Stock shall be adjusted by
multiplying:

                  (i) the number of additional shares of Common Stock applicable
            immediately prior to such adjustment by

                  (ii) a fraction, of which

                                       26
<PAGE>
                        (A)   the numerator shall be the Conversion Price
                              immediately prior to the adjustment, and

                        (B)   the denominator shall be the Conversion Price as
                              so adjusted.

The following table sets forth the Stock Price and number of additional shares
of Common Stock issuable per $1,000 aggregate principal amount of Notes:

<TABLE>
<CAPTION>
STOCK PRICE              $5.29   $5.79   $6.35   $7.05   $7.95   $9.05   $10.35 $11.85  $13.55  $15.45  $17.55
-----------              -----   -----   -----   -----   -----   -----   -------------  ------  ------  ------
Effective Date
--------------
<S>                       <C>    <C>     <C>     <C>      <C>    <C>     <C>    <C>      <C>     <C>     <C>
November 15, 2004         31.52  27.64   24.31   21.14    18.09  15.31   12.86  10.73    8.89    7.32    5.98
May 15, 2005              29.48  25.71   22.52   19.53    16.68  14.11   11.86   9.90    8.21    6.77    5.54
May 15, 2006              25.40  21.75   18.78   16.12    13.69  11.56    9.72   8.13    6.76    5.60    4.60
May 15, 2007              21.27  17.58   14.75   12.38    10.38   8.74    7.35   6.17    5.14    4.27    3.52
May 15, 2008              17.27  13.22   10.33    8.19     6.66   5.56    4.69   3.94    3.30    2.75    2.28
May 15, 2009              13.96   8.89    5.43    3.34     2.40   1.97    1.67   1.41    1.18    0.99    0.82
May 15, 2010              12.95   6.36    0.93    0.00     0.00   0.00    0.00   0.00    0.00    0.00    0.00
May 15, 2011              13.37   6.36    0.77    0.00     0.00   0.00    0.00   0.00    0.00    0.00    0.00
May 15, 2012              14.32   6.54    0.61    0.00     0.00   0.00    0.00   0.00    0.00    0.00    0.00
May 15, 2013              16.39   7.20    0.47    0.00     0.00   0.00    0.00   0.00    0.00    0.00    0.00
May 15, 2014              20.88   8.94    0.33    0.00     0.00   0.00    0.00   0.00    0.00    0.00    0.00
May 15, 2015               0.00   0.00    0.00    0.00     0.00   0.00    0.00   0.00    0.00    0.00    0.00
</TABLE>

            If the Stock Price and Effective Date are not set forth on the table
above and the Stock Price is:

                  (A) between two Stock Prices on the table or the Effective
      Date is between two days on the table, the number of additional shares of
      Common Stock shall be determined by straight-line interpolation between
      the number of additional shares of Common Stock set forth for the higher
      and lower Stock Price and the two Effective Dates, as applicable, based on
      a 360-day year;

                  (B) in excess of $17.55 per share (subject to adjustment), no
      additional shares of Common Stock shall be issued upon conversion; or

                  (C) less than $5.29 per share (subject to adjustment), no
      additional shares of Common Stock shall be issued upon conversion.

      Notwithstanding the foregoing, in no event will the total number of shares
of Common Stock issuable upon conversion exceed $189.0359 per $1,000 principal
amount of the Notes, subject to adjustments in the same manner as the number of
additional shares of Common Stock as set forth in this Section 10.01

            (c) The Company shall provide notice to all Holders and to the
Trustee at least 15 Trading Days prior to the anticipated Effective Date of a
Non-Stock Change of Control. The Company must also provide notice to all Holders
and to the Trustee upon the effectiveness of such Non-Stock Change of Control.

                                       27
<PAGE>
            Section 10.02. Conversion Procedure; Conversion Price; Fractional
Shares

            (a) Subject to Section 10.03, each Note shall be convertible at the
office of the Conversion Agent. The Note shall be converted into fully paid and
non-assessable shares of Common Stock (calculated to the nearest 1/100th of a
share) at the Conversion Price therefor. No payment or adjustment shall be made
in respect of dividends on the Common Stock or accrued interest on a converted
Note, except as described in Section 10.10 hereof. The Company shall not issue
any fractional share of Common Stock in connection with any conversion of Notes,
but instead shall, at the Company's option, subject to Section 10.04(k) hereof,
either (i) make a cash payment (calculated to the nearest cent) equal to the
market value of that fractional share based upon the closing Sale Price of the
Common Stock on the last Trading Day prior to the Conversion Dave or (ii) round
up the number of shares to be delivered upon conversion to the nearest whole
share. Notwithstanding the foregoing, a Note in respect of which a Holder has
delivered a Fundamental Change Purchase Notice exercising such Holder's option
to require the Company to repurchase such Note may be converted only if such
notice of exercise is withdrawn in accordance with Section 5.02 hereof.

            (b) Before any Holder of a Note shall be entitled to convert the
same into Common Stock, such Holder shall, in the case of Global Notes, comply
with the procedures of the Depositary in effect at that time, and in the case of
certificated Notes, surrender such Notes, duly endorsed to the Company or in
blank, at the office of the Conversion Agent, and shall give written notice to
the Company at said office or place that such Holder elects to convert the same
and shall state in writing therein the principal amount of Notes to be converted
and the name or names (with addresses) in which such Holder wishes the
certificate or certificates for Common Stock to be issued.

            Before any such conversion, a Holder also shall pay all funds
required, if any, relating to interest on the Notes, as provided in Section
10.10, and all taxes or duties, if any, as provided in Section 10.09.

            If more than one Note shall be surrendered for conversion at one
time by the same Holder, the number of full shares of Common Stock which shall
be deliverable upon conversion shall be computed on the basis of the aggregate
principal amount of the Notes (or specified portions thereof to the extent
permitted thereby) so surrendered. Subject to the next succeeding sentence, the
Company shall, as soon as practicable thereafter, issue and deliver at said
office or place to such Holder of a Security, or to such Holder's nominee or
nominees, certificates 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, if applicable, to which such Holder would otherwise be
entitled. The Company shall not be required to deliver certificates for shares
of Common Stock while the stock transfer books for such stock or the security
register are duly closed for any purpose, but certificates for shares of Common
Stock shall be issued and delivered as soon as practicable after the opening of
such books or security register.

            (c) A Note shall be deemed to have been converted as of the close of
business on the date of the surrender of such Notes for conversion and
compliance with the other requirements of this Section 10.02 as provided above
(the "Conversion Date"), and the Person or Persons entitled to receive the
Common Stock issuable upon such conversion shall be treated for

                                       28
<PAGE>
all purposes as the record Holder or Holders of such Common Stock as of the
close of business on such date.

            (d) In case any Note 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 Note so surrendered, without charge
to such Holder (subject to the provisions of Section 10.09 hereof), a new Note
or Notes in authorized denominations in an aggregate principal amount equal to
the unconverted portion of the surrendered Notes.

            Section 10.03. Non-Convertibility Periods.

            (a) If on any date a Note is delivered for conversion on or prior to
February 2, 2010 and the Company does not have a sufficient number of reserved
shares pursuant to Section 10.08 to satisfy its Conversion Obligation for that
note (the "triggering note") without exercising its option to deliver any
portion in cash pursuant to Section 10.14 hereof, then no further Notes may be
delivered for conversion from and including such date to and including the
earliest of (A) the date the Company obtains Stockholder Approval and amends its
restated certificate of incorporation to increase its authorized capital to be
able to reserve and deliver shares of Common Stock upon conversion of the
remaining Outstanding Notes, (B) the date the Company reserves additional shares
that have otherwise become available for reservation in an amount to enable the
Company to be able to deliver shares of Common Stock upon conversion of the
remaining Outstanding Notes, and (C) February 2, 2010 (any such period, a
"non-convertibility period"). The triggering note shall be converted to the
extent there are any reserved shares remaining, and the Company shall issue a
new Note or Notes in principal amount equal to the unconverted principal portion
thereof. The Company shall not be obligated to deliver cash on conversion for
the remaining principal amount of the triggering note. If the non-convertibility
period remains in effect on the 10th day after the first annual meeting of
stockholders that is held more than three months after the date the triggering
note is delivered for conversion, then the Notes shall bear interest at the rate
of 10.00% per annum from and after such annual meeting until the end of the
non-convertibility period.

            Notwithstanding the foregoing, the Company shall convert, as
provided in Section 10.02(a) and Section 10.14, any Notes delivered for
conversion during a non-convertibility period after any Fundamental Change (or a
transaction that would have been a Fundamental Change but for either of the two
exceptions described in Section 5.01(b) hereof) has occurred until the close of
business on the business day prior to the Fundamental Change Repurchase Date.

            (b) Upon the commencement of any non-convertibility period, the
Company shall issue a press release through Dow Jones & Company, Inc. containing
the relevant information and otherwise make such information available on the
Company's web site or through another public medium as the Company may use at
that time.

            (c) During any non-convertibility period, the Company shall not be
permitted to:

                                       29
<PAGE>
                  (i) distribute to all Holders of the Common Stock rights or
      warrants entitling them to purchase, for a period of 45 calendar days or
      less, shares of the Common Stock at a price less than the average closing
      sale price for the ten Trading Days preceding the declaration date for
      such distribution; or

                  (ii) distribute to all Holders of the Common Stock, cash or
      other assets, debt securities or rights to purchase the Company's
      securities, which distribution has a per share value exceeding 5% of the
      closing sale price of the Common Stock on the Trading Day preceding the
      declaration date for such distribution;

provided that, nothing in the foregoing shall restrict the Company's ability to
distribute any rights described in the fourth paragraph of Section 10.04(d).

            Section 10.04. Adjustment of Conversion Price. The Conversion Price
shall be adjusted from time to time as follows:

            (a) In case the Company shall, at any time or from time to time
while any of the Notes are Outstanding, pay a dividend or make a distribution in
shares of Common Stock to all holders of its outstanding shares of Common Stock,
then the Conversion Price in effect at the opening of business on the date
following the Record Date fixed for the determination of stockholders entitled
to receive such dividend or other distribution shall be reduced by multiplying
such Conversion Price by a fraction:

                  (i) the numerator of which shall be the number of shares of
      Common Stock Outstanding at the close of business on the Record Date fixed
      for such determination; and

                  (ii) the denominator of which shall be the sum of such number
      of shares and the total number of shares constituting such dividend or
      other distribution.

      Such reduction shall become effective immediately after the opening of
business on the day following the Record Date fixed for such determination. If
any dividend or distribution of the type described in this Section 10.04(a) 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 dividend or distribution
had not occurred.

            (b) In case the Company shall, at any time or from time to time
while any of the Notes are Outstanding, subdivide its outstanding shares of
Common Stock into a greater number of shares of Common Stock, then the
Conversion Price in effect at the opening of business on the day following the
day upon which such subdivision becomes effective shall be proportionately
reduced, and conversely, in case the Company shall, at any time or from time to
time while any of the Notes are Outstanding, combine its outstanding shares of
Common Stock into a smaller number of shares of Common Stock, then the
Conversion Price in effect at the opening of business on the day following the
day upon which such combination becomes effective shall be proportionately
increased.

                                       30
<PAGE>
            Such reduction or increase, as the case may be, shall become
effective immediately after the opening of business on the day following the day
upon which such subdivision or combination becomes effective.

            (c) In case the Company shall, at any time or from time to time
while any of the Notes are Outstanding, issue rights or warrants (other than any
rights or warrants referred to in Section 10.04(d)) to all or substantially all
holders of its shares of Common Stock entitling them to subscribe for or
purchase, for a period of up to 45 days, shares of Common Stock (or securities
convertible into shares of Common Stock) at a price per share (or having a
conversion price per share) less than the Sale Price of the Common Stock on the
Business Day immediately preceding the date of the announcement of such issuance
(treating the conversion price per share of the securities convertible into
Common Stock as equal to (x) the sum of (i) the price for a unit of the security
convertible into Common Stock and (ii) any additional consideration initially
payable upon the conversion of such security into Common Stock divided by (y)
the number of shares of Common Stock initially underlying such convertible
security), then the Conversion Price shall be adjusted so that the same shall
equal the price determined by multiplying the Conversion Price in effect
immediately prior to the Record Date fixed for the determination of stockholders
entitled to receive such rights or warrants by a fraction:

                  (i) the numerator of which shall be the number of shares of
      Common Stock Outstanding on the close of business on such Record Date,
      plus the number of shares of Common Stock which the aggregate offering
      price of the total number of shares of Common Stock or securities so
      offered for subscription or purchase (and the aggregate conversion price
      of the convertible securities so offered) would purchase at such Sale
      Price of the Common Stock; and

                  (ii) the denominator of which shall be the number of shares of
      Common Stock Outstanding at the close of business on the date of
      announcement, plus the total number of additional shares of Common Stock
      so offered for subscription or purchase (or into which the convertible
      securities so offered are convertible).

            Such adjustment shall become effective immediately after the opening
of business on the day following the Record Date fixed for the determination of
stockholders entitled to receive such rights or warrants. To the extent that
shares of Common Stock (or securities convertible into shares of Common Stock)
are not delivered pursuant to such rights or warrants, upon the expiration or
termination of such rights or warrants or the date when such convertible
securities are no longer convertible, the Conversion Price shall be readjusted
to the Conversion Price which would then be in effect had the adjustments made
upon the issuance of such rights or warrants been made on the basis of the
delivery of only the number of shares of Common Stock (or securities convertible
into shares of Common Stock) actually delivered. In the event that such rights
or warrants are not so issued, the Conversion Price shall again be adjusted to
be the Conversion Price which would then be in effect if the date fixed for the
determination of stockholders entitled to receive such rights or warrants had
not been fixed. In determining whether any rights, warrants or securities
entitle the holders to subscribe for purchase or otherwise receive shares of
Common Stock at less than such Sale Price, and in determining the aggregate
offering price of such shares of Common Stock, there shall be taken into account
any

                                       31
<PAGE>
consideration received for such rights, warrants or securities, the value of
such consideration, if other than cash, to be determined by the Board of
Directors.

            (d) In case the Company shall, at any time or from time to time
while any of the Notes are Outstanding, by dividend or otherwise, distribute to
all or substantially all holders of its shares of Common Stock (including any
such distribution made in connection with a consolidation or merger in which the
Company is the continuing corporation and the Common Stock is not changed or
exchanged), shares of Capital Stock (other than any dividends or distributions
of Common Stock to which Section 10.04(a) applies), evidences of its
indebtedness or other assets, including securities, but excluding (i) any
rights, warrants or securities referred to in Section 10.04(c) and (ii)
dividends or distributions of stock, securities or other property or assets
(including cash) in connection with a reclassification, consolidation, merger,
statutory share exchange, combination, sale or conveyance to which Section 10.05
applies (such capital stock, evidence of its indebtedness, and other assets or
securities being distributed hereinafter in this Section 10.04(d) called the
"distributed assets"), then, in each such case, subject to the second and third
succeeding paragraphs and the last two paragraphs of this Section 10.04(d), the
Conversion Price shall be reduced so that the same shall be equal to the price
determined by multiplying the Conversion Price in effect immediately prior to
the close of business on the Record Date with respect to such distribution by a
fraction:

                  (i) the numerator of which shall be the Current Market Price
      on such Record Date, less the Fair Market Value on such date of the
      portion of the distributed assets so distributed applicable to one share
      of Common Stock (determined on the basis of the number of shares of Common
      Stock Outstanding on the Record Date); and

                  (ii) the denominator of which shall be such Current Market
      Price.

            Such reduction shall become effective immediately prior to the
opening of business on the day following the Record Date for such distribution.
In the event that such dividend or distribution is not so paid or made, the
Conversion Price shall again be adjusted to be the Conversion Price which would
then be in effect if such dividend or distribution had not been declared.

            If the Board of Directors determines the Fair Market Value of any
distribution for purposes of this Section 10.04(d) by reference to the actual or
when issued trading market for any distributed assets comprising all or part of
such distribution, it must in doing so consider the prices in such market over
the same period (the "Reference Period") used in computing the Current Market
Price pursuant to Section 10.04(g) to the extent possible, unless the Board of
Directors determines in good faith that determining the Fair Market Value during
the Reference Period would not be in the best interest of the Holders.
Notwithstanding the foregoing, in the event any such distribution consists of
shares of capital stock of, or similar equity interests in, one or more of the
Company's Subsidiaries (a "Spin-Off"), the Conversion Price shall be reduced so
that the same shall be equal to the price determined by multiplying the
Conversion Price in effect immediately prior to the close of business on the
Record Date with respect to such distribution by a fraction:

                                       32
<PAGE>
                  (1) the numerator of which shall be the Current Market Price
      on such Record Date; and

                  (2) the denominator of which shall be the Current Market Price
      of the Common Stock, plus the Fair Market Value of the portion of the
      distributed assets so distributed applicable to one share of Common Stock
      (determined on the basis of the number of shares of Common Stock
      Outstanding on the Record Date), each as determined as set forth in the
      third and fourth succeeding sentences.

Such reduction shall become effective immediately prior to the opening of
business on the day following the last Trading Day of the Spin-Off Valuation
Period (as defined below). In the event that such dividend or distribution is
not so paid or made, the Conversion Price shall again be adjusted to be the
Conversion Price that would then be in effect if such dividend or distribution
had not been declared. In the case of a Spin-Off, the Fair Market Value of the
securities to be distributed shall equal the average of the closing sale prices
of such securities on the principal securities market on which such securities
are traded for the five consecutive Trading Days commencing on and including the
sixth day of trading of those securities after the effectiveness of the Spin-Off
(the "Spin-Off Valuation Period"), and the Current Market Price shall be
measured for the same period. In the event, however, that an underwritten
initial public offering of the securities in the Spin-Off occurs simultaneously
with the Spin-Off, Fair Market Value of the securities distributed in the
Spin-Off shall mean the initial public offering price of such securities and the
Current Market Price shall mean the Sale Price for the Common Stock on the same
Trading Day.

            Rights or warrants distributed by the Company to all holders of its
shares of Common Stock entitling them to subscribe for or purchase shares of the
Company's capital stock (either initially or under certain circumstances), which
rights or warrants, until the occurrence of a specified event or events
("Trigger Event"), (i) are deemed to be transferred with such shares of Common
Stock, (ii) are not exercisable and (iii) are also issued in respect of future
issuances of shares of Common Stock, shall be deemed not to have been
distributed for purposes of this Section 10.04(d) (and no adjustment to the
Conversion Price under this Section 10.04(d) shall be required) until the
occurrence of the earliest Trigger Event. If such right or warrant is subject to
subsequent events, upon the occurrence of which such right or warrant shall
become exercisable to purchase different distributed assets, evidences of
indebtedness or other assets, or entitle the holder to purchase a different
number or amount of the foregoing or to purchase any of the foregoing at a
different purchase price, then the occurrence of each such event shall be deemed
to be the date of issuance and Record Date with respect to a new right or
warrant (and a termination or expiration of the existing right or warrant
without exercise by the holder thereof). In addition, in the event of any
distribution (or deemed distribution) of rights or warrants, or any Trigger
Event or other event (of the type described in the preceding sentence) with
respect thereto, that resulted in an adjustment to the Conversion Price under
this Section 10.04(d)):

                  (1) in the case of any such rights or warrants which shall all
      have been redeemed or repurchased without exercise by any holders thereof,
      the Conversion Price shall be readjusted upon such final redemption or
      repurchase to give effect to such distribution or Trigger Event, as the
      case may be, as though it were a cash distribution, equal to the per share
      redemption or repurchase price received by a holder of shares of

                                       33
<PAGE>
      Common Stock with respect to such rights or warrants (assuming such holder
      had retained such rights or warrants), made to all holders of shares of
      Common Stock as of the date of such redemption or repurchase; and

                  (2) in the case of such rights or warrants which shall have
      expired or been terminated without exercise, the Conversion Price shall be
      readjusted as if such rights and warrants had never been issued.

For purposes of this Section 10.04(d) and Section 10.04(a), Section 10.04(b) and
Section 10.04(c), any dividend or distribution to which this Section 10.04(d) is
applicable that also includes (i) shares of Common Stock, (ii) a subdivision or
combination of shares of Common Stock to which Section 10.04(b) applies or (iii)
rights or warrants to subscribe for or purchase shares of Common Stock to which
Section 10.04(c) applies (or any combination thereof), shall be deemed instead
to be:

                  (1) a dividend or distribution of the evidences of
      indebtedness, assets, shares of capital stock, rights or warrants, other
      than such shares of Common Stock, such subdivision or combination or such
      rights or warrants to which Section 10.04(a), Section 10.04(b) and Section
      10.04(c) apply, respectively (and any Conversion Price reduction required
      by this Section 10.04(d) with respect to such dividend or distribution
      shall then be made), immediately followed by

                  (2) a dividend or distribution of such shares of Common Stock,
      such subdivision or combination or such rights or warrants (and any
      further Conversion Price reduction required by Section 10.04(a), Section
      10.04(b) and Section 10.04(c) with respect to such dividend or
      distribution shall then be made), except:

                        (A) the Record Date of such dividend or distribution
            shall be substituted as (i) "the Record Date fixed for the
            determination of stockholders entitled to receive such dividend or
            other distribution," "Record Date fixed for such determination" and
            "Record Date" within the meaning of Section 10.04(a), (ii) "the day
            upon which such subdivision becomes effective" and "the day upon
            which such combination becomes effective" within the meaning of
            Section 10.04(b), and (iii) as "the Record Date fixed for the
            determination of the stockholders entitled to receive such rights or
            warrants" and such "Record Date" within the meaning of Section
            10.04(c); and

                        (B) any shares of Common Stock included in such dividend
            or distribution shall not be deemed "Outstanding at the close of
            business on the Record Date fixed for such determination" within the
            meaning of Section 10.04(a) and any reduction or increase in the
            number of shares of Common Stock resulting from such subdivision or
            combination shall be disregarded in connection with any Conversion
            Price reduction required by Section 10.04(a), Section 10.04(c) and
            Section 10.04(d).

            In the event of any distribution referred to in this Section
10.04(d) in which (i) the value of such distribution per share of Common Stock
equals or exceeds the average of the Sale

                                       34
<PAGE>
Prices of the Common Stock over the ten consecutive Trading Day period ending on
the Record Date for such distribution, or (ii) such average of the Sale Prices
of the Common Stock exceeds the Fair Market Value of such distribution
applicable to one share of Common Stock (as determined by the Board of
Directors) by less than $1.00, then, in each such case, in lieu of an adjustment
to the Conversion Price, adequate provision shall be made so that each Holder
shall have the right to receive upon conversion of a Note, in addition to shares
of Common Stock, the kind and amount of such distribution such Holder would have
received had such Holder converted such Note immediately prior to the Record
Date for determining the shareholders entitled to receive the distribution.

            No adjustment to the Conversion Price or the ability of a Holder of
a Note to convert shall be made if the Holder may otherwise participate in such
distribution without conversion.

            (e) In case the Company shall, by dividend or otherwise, distribute
to all or substantially all holders of its Common Stock cash (excluding any
dividend or distribution in connection with the liquidation, dissolution or
winding up of the Company or upon a merger or consolidation, whether voluntary
or involuntary), then, in such case, the Conversion Price shall be reduced so
that the same shall equal the rate determined by multiplying the Conversion
Price in effect on the applicable Record Date by a fraction,

                  (i) the numerator of which shall be (a) the Current Market
      Price on such Record Date minus (b) the amount distributed per ordinary
      share of Common Stock; and

                  (ii) the denominator of which shall be such Current Market
      Price.

            Notwithstanding the foregoing, adjustments to the Conversion Price
resulting from any quarterly cash dividends may not cause the Conversion Price
(as adjusted for any other adjustment in this Section 10.04) to be less than
$5.29.

            Such adjustment shall become effective immediately after the opening
of business on the day following the Record Date fixed for the determination of
the stockholders entitled to receive such cash dividend or other distribution
consisting exclusively of cash. If any dividend or distribution of the type
described in this Section 10.04(e) is declared but not so paid or made, the
Conversion Price shall again be adjusted to the Conversion Price which would
then be in effect if such dividend or distribution had not been declared.

            (f) In case a tender or exchange offer made by the Company or any
Subsidiary for all or any portion of the Common Stock shall expire and such
tender or exchange offer (as amended upon the expiration thereof) shall require
the payment to stockholders of consideration per share of Common Stock having a
Fair Market Value (as determined by the Board of Directors, whose determination
shall be conclusive and described in a resolution of the Board of Directors)
that as of the last time (the "Expiration Time") tenders or exchanges may be
made pursuant to such tender or exchange offer (as it may be amended) exceeds
the Sale Price of a share of Common Stock on the Trading Day next succeeding the
Expiration Time, the Conversion Price shall be reduced so that the same shall
equal the price determined by

                                       35
<PAGE>
multiplying the Conversion Price in effect immediately prior to the Expiration
Time by a fraction,

                  (i) the numerator of which shall be the number of shares of
      Common Stock Outstanding (including any tendered or exchanged shares) at
      the Expiration Time multiplied by the Sale Price of a share of Common
      Stock on the Trading Day next succeeding the Expiration Time; and

                  (ii) the denominator of which shall be the sum of (x) the Fair
      Market Value (determined as aforesaid) of the aggregate consideration
      payable to stockholders based on the acceptance (up to any maximum
      specified in the terms of the tender or exchange offer) of all shares
      validly tendered or exchanged and not withdrawn as of the Expiration Time;
      and (y) the product of the number of shares of Common Stock Outstanding
      (less any Purchased Shares) at the Expiration Time and the Sale Price of a
      share of Common Stock on the Trading Day next succeeding the Expiration
      Time.

            Such reduction shall become effective immediately after the opening
of business on the day following the Expiration Time. If the Company is
obligated to purchase shares pursuant to any such tender or exchange offer, but
the Company is permanently prevented by applicable law from effecting any such
purchases or all such purchases are rescinded, the Conversion Price shall again
be adjusted to be the Conversion Price that would then be in effect if such
tender or exchange offer had not been made.

            For purposes of any computation under this Section 10.04(f), if the
"ex" date for any event (other than the tender offer requiring such computation)
that requires an adjustment to the Conversion Price pursuant to Section
10.04(a), (b), (c), (d), (e) or (f) occurs on the Trading Day next succeeding
the Expiration Time for the tender or exchange offer requiring such computation,
the Sale Price for such Trading Day shall be adjusted by multiplying such Sale
Price by the reciprocal of the fraction by which the Conversion Price is so
required to be multiplied as a result of such other event.

            (g) For purposes of this Article X, the following terms shall have
the meanings indicated:

            "Current Market Price" on any date means the average of the daily
Sale Prices per share of Common Stock for the ten consecutive Trading Days
immediately prior to such date (the "day in question"); provided that if:

                  (1) the "ex" date (as hereinafter defined) for any event
      (other than the issuance or distribution requiring such computation) that
      requires an adjustment to the Conversion Price pursuant to Section 10.04
      (a), (b), (c), (d), (e) or (f) occurs during such ten consecutive Trading
      Days, the Sale Price for each Trading Day prior to the "ex" date for such
      other event shall be adjusted by multiplying such Sale Price by the same
      fraction by which the Conversion Price is so required to be multiplied as
      a result of such other event;

                  (2) the "ex" date for any event (other than the issuance or
      distribution requiring such computation) that requires an adjustment to
      the Conversion Price pursuant

                                       36
<PAGE>
      to Section 10.04(a), (b), (c), (d), (e) or (f) occurs on or after the "ex"
      date for the issuance or distribution requiring such computation and prior
      to the day in question, the Sale Price for each Trading Day on and after
      the "ex" date for such other event shall be adjusted by multiplying such
      Sale Price by the reciprocal of the fraction by which the Conversion Price
      is so required to be multiplied as a result of such other event; and

                  (3) the "ex" date for the issuance or distribution requiring
      such computation is prior to the day in question, after taking into
      account any adjustment required pursuant to clause (1) or (2) of this
      proviso, the Sale Price for each Trading Day on or after such "ex" date
      shall be adjusted by adding thereto the amount of any cash and the Fair
      Market Value (as determined by the Board of Directors in a manner
      consistent with any determination of such value for purposes of Section
      10.04(d), (e) or (f)) of the evidences of indebtedness, shares of capital
      stock or assets being distributed applicable to one share of Common Stock
      as of the close of business on the day before such "ex" date.

Notwithstanding the foregoing, whenever successive adjustments to the Conversion
Price are called for pursuant to this Section 10.04, such adjustments shall be
made to the Current Market Price as may be necessary or appropriate to
effectuate the intent of this Section 10.04 and to avoid unjust or inequitable
results as determined in good faith by the Board of Directors.

            "Ex" date, when used:

                  (1) with respect to any issuance or distribution, means the
      first date on which the shares of Common Stock trade regular way on the
      relevant exchange or in the relevant market from which the Sale Price was
      obtained without the right to receive such issuance or distribution;

                  (2) with respect to any subdivision or combination of shares
      of Common Stock, means the first date on which the shares of Common Stock
      trade regular way on such exchange or in such market after the time at
      which such subdivision or combination becomes effective; and

                  (3) with respect to any tender or exchange offer, means the
      first date on which the shares of Common Stock trade regular way on such
      exchange or in such market after the Expiration Time of such offer.

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

            "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 shares of Common Stock, cash, securities or other
property or in which the shares of Common Stock (or other applicable security)
is exchanged for or converted into any combination of cash, securities or other
property, the date fixed for determination of stockholders entitled to receive
such shares of Common Stock, cash, securities or other property (whether such
date is fixed by the Board of Directors or by statute, contract or otherwise).

                                       37
<PAGE>
            (h) The Company shall be entitled to make such additional reductions
in the Conversion Price, in addition to those required by Section 10.04(a), (b),
(c), (d), (e) or (f), as shall be necessary in order that any dividend or
distribution of Common Stock, any subdivision, reclassification or combination
of shares of Common Stock or any issuance of rights or warrants referred to
above shall not be taxable to the holders of Common Stock for United States
Federal income tax purposes.

            (i) To the extent permitted by applicable law and Section 8.01(e),
the Company may, from time to time, reduce the Conversion Price by any amount
for any period of time, if such period is at least 20 business days and the
reduction is irrevocable during the period. Whenever the Conversion Price is
reduced pursuant to the 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 Notes 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 shall be in
effect.

            (j) In any case in which this Section 10.04 shall require that any
adjustment be made effective as of or retroactively immediately following a
Record Date, the Company may elect to defer (but only for five Trading Days
following the filing of the statement referred to in Section 10.06) issuing to
the Holder of any Notes converted after such Record Date the shares of Common
Stock issuable upon such conversion over and above the shares of Common Stock
issuable upon such conversion on the basis of the Conversion Price prior to
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 upon the occurrence of the event requiring such
adjustment.

            (k) All calculations under this Section 10.04 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.

            (l) No adjustment in the Conversion Price shall be required unless
such adjustment would require a change of at least 1% in the Conversion Price;
provided that the Company shall carry forward any adjustment that is less than
1% of the Conversion Price, take such carried forward adjustments into account
in any subsequent adjustments, and make such carried forward adjustments,
regardless of whether the aggregate adjustment is less than 1%, within one year
of the first such adjustment carried forward or if earlier, upon redemption
date, upon a Fundamental Change or upon Stated Maturity.

            (m) In the event that at any time, as a result of an adjustment made
pursuant to this Section 10.04, the Holder of any Notes thereafter surrendered
for conversion shall become entitled to receive any shares of stock of the
Company other than shares of Common Stock into which the Notes originally were
convertible, the Conversion Price of such other shares so receivable upon
conversion of any such Note shall be subject to adjustment from time to time in
a manner and on terms as nearly equivalent as practicable to the provisions with
respect to Common Stock contained in subparagraphs (a) through (k) of this
Section 10.04, and the provision of Section 10.01, Section 10.02 and Section
10.05 through Section 10.10 with respect

                                       38
<PAGE>
to the Common Stock shall apply on like or similar terms to any such other
shares and the determination of the Board of Directors as to any such adjustment
shall be conclusive.

            (n) No adjustment shall be made if the consent of the holders of the
Common Stock would be required for the issuance of, or the Company's agreement
to issue, the Common Stock at the adjusted Conversion Price pursuant to the
rules of The New York Stock Exchange or any exchange or other market on which
the Common Stock is then listed or traded and the Company has not obtained such
consent in compliance with the applicable rules.

            Section 10.05. Consolidation or Merger of the Company. If any of the
following events occurs, namely:

                  (a) any reclassification or change of the outstanding 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 or merger of the Company with or into
      another Person or

                  (c) any sale, lease, transfer, conveyance or other disposition
      of all or substantially all of the Company's assets and those of its
      Subsidiaries taken as a whole to any other Person,

as a result of which holders of Common Stock shall be entitled to receive stock,
other securities or other property or assets (including cash or any combination
thereof) with respect to or in exchange for such Common Stock, the Company or
the successor or purchasing corporation, as the case may be, shall execute with
the Trustee a supplemental indenture (which shall comply with the Trust
Indenture Act as in force at the date of execution of such supplemental
indenture, if such supplemental indenture is then required to so comply)
providing that such Notes shall be convertible into the kind and amount of
shares of stock and other securities or property or assets (including cash or
any combination thereof) that such Holder would have been entitled to receive
upon such reclassification, change, consolidation, merger, sale, lease,
transfer, conveyance or other disposition had such Notes been converted into
Common Stock immediately prior to such reclassification, change, consolidation,
merger, sale, lease, transfer, conveyance or other disposition assuming such
holder of Common Stock did not exercise its rights of election, if any, as to
the kind or amount of securities, cash or other property receivable upon such
consolidation, merger, sale, lease, transfer, conveyance or other disposition;
provided that if the kind or amount of securities, cash or other property
receivable upon such consolidation, merger, sale, lease, transfer, conveyance or
other disposition is not the same for each share of Common Stock in respect of
which such rights of election shall not have been exercised ("Non-Electing
Share"), then for the purposes of this Section 10.05, the kind and amount of
securities, cash or other property receivable upon such consolidation, merger,
sale, lease, transfer, conveyance or other disposition for each Non-Electing
Share shall be deemed to be the kind and amount so receivable per share by a
plurality of the Non-Electing Shares. Such supplemental indenture shall provide
for adjustments that shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Article X. If, in the case of any such
reclassification, change, consolidation, merger, sale, lease, transfer,
conveyance or other disposition, the stock or other securities and

                                       39
<PAGE>
assets receivable thereupon by a holder of Common Stock includes shares of stock
or other securities and assets of a corporation other than the successor or
purchasing corporation, as the case may be, in such reclassification, change,
consolidation, merger, sale, lease, transfer, conveyance or other disposition,
then such supplemental indenture shall also be executed by such other
corporation and shall contain such additional provisions to protect the
interests of the Holders of the Notes as the Board of Directors shall reasonably
consider necessary by reason of the foregoing, including to the extent
practicable the provisions providing for the conversion rights set forth in this
Article X.

            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 Notes 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 10.05 shall similarly apply to
successive reclassifications, changes, consolidations, mergers, sales, leases,
transfers, conveyances or other dispositions.

            If this Section 10.05 applies to any event or occurrence, Section
10.04 shall not apply. Notwithstanding this Section 10.05, if a Public Acquirer
Change of Control occurs and the Company elects to adjust its Conversion
Obligation and the Conversion Price pursuant to Section 10.13, the provisions of
Section 10.13 shall apply to the conversion instead of this Section 10.05.

            Any additional Common Stock that a Holder is entitled to receive
upon conversion pursuant to Section 10.01(b), if applicable, shall not be
payable in shares of Common Stock, but shall represent a right to receive the
aggregate amount of cash, securities or other property into which the additional
Common Stock would convert as a result of such recapitalization, change,
consolidation, merger, sale, lease, transfer, conveyance or other disposition.

            Section 10.06. Notice of Adjustment. Whenever an adjustment in the
Conversion Price with respect to the Notes is required:

                  (a) the Company shall forthwith place on file with the Trustee
      and any Conversion Agent for such Notes a certificate of the Treasurer 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 forthwith
      be given by the Company or, at the Company's request, by the Trustee in
      the name and at the expense of the Company, to each Holder in the manner
      provided in Section 11.01. Any notice so given shall be conclusively
      presumed to have been duly given, whether or not the Holder receives such
      notice.

                                       40
<PAGE>
In addition, whenever an adjustment in the Conversion Price with respect to the
Notes is required, the Company shall issue a press release through Dow Jones &
Company, Inc. containing the relevant information and make such information
available on the Company's web site or through another public medium as it may
use at that time.

            Section 10.07. Notice in Certain Events. In case of:

                  (a) a consolidation or merger to which the Company is a party
      or of the sale, lease, transfer, conveyance or other disposition of all or
      substantially all of the Company's assets and those of its Subsidiaries
      taken as a whole to any Person; or

                  (b) the liquidation or dissolution of the Company; or

                  (c) any action triggering an adjustment of the Conversion
      Price referred to in clauses (x) or (y) below;

then, in each case, the Company shall cause to be filed with the Trustee and the
Conversion Agent, and shall cause to be given, to the Holders of the Notes in
the manner provided in Section 11.01, at least 15 days prior to the applicable
date hereinafter specified, a notice stating (x) the date on which a record is
to be taken for the purpose of any distribution or grant of rights or warrants
triggering an adjustment to the Conversion Price pursuant to this Article X, or,
if a record is not to be taken, the date as of which the holders of record of
Common Stock entitled to such distribution, rights or warrants are to be
determined, or (y) the date on which any reclassification, change,
consolidation, merger, sale, lease, transfer, conveyance, disposition,
liquidation or dissolution triggering an adjustment to the Conversion Price
pursuant to this Article X is expected to become effective, and the date as of
which it is expected that holders of Common Stock of record shall be entitled to
exchange their Common Stock for securities or other property deliverable upon
such reclassification, change, consolidation, merger, sale, lease, transfer,
conveyance, disposition, liquidation or dissolution.

            Failure to give such notice or any defect therein shall not affect
the legality or validity of the proceedings described in clause (a), (b) or (c)
of this Section 10.07.

            Section 10.08. Company to Reserve Stock; Registration; Listing

            (a) On the date hereof, the Company has 37,140,472 shares of Common
      Stock reserved for the purpose of effecting the conversion of the Notes.
The Company may reserve additional shares of Common Stock for such purpose and
shall not reduce such number of reserved shares. At any time the Company
increases the number of reserved shares, it shall give prompt notice to the
Trustee of such increased number. After Stockholder Approval is obtained, the
Company shall, in accordance with the laws of the State of Delaware, 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 Notes, such number of its duly authorized shares of Common
Stock as shall from time to time be sufficient to effect the conversion of all
Notes then Outstanding into such Common Stock at any time (assuming that, at the
time of the computation of such number of shares or Securities, all such Notes
would be held by a single Holder); provided that nothing contained herein shall
preclude the Company from satisfying its obligations in respect of the
conversion of the Notes by delivery of (i) otherwise

                                       41
<PAGE>
available shares of Common Stock or (ii) purchased shares of Common Stock which
are then held in the treasury of the Company. The Company covenants that all
shares of Common Stock that may be issued upon conversion of Notes shall be upon
issue fully paid and nonassessable and free from all liens and charges and,
except as provided in Section 10.09, taxes with respect to the issue thereof.

            (b) If any shares of Common Stock that would be issuable upon
conversion of Notes hereunder require registration with or approval of any
governmental authority before such shares or securities may be issued upon such
conversion, the Company shall in good faith and as expeditiously as possible
endeavor to cause such shares or securities to be duly registered or approved,
as the case may be. The Company further covenants that so long as the Common
Stock shall be listed on The New York Stock Exchange, the Company shall, if
permitted by the rules of such exchange, list and keep listed all Common Stock
reserved for issuance upon conversion of the Notes, and the Company shall
endeavor to list the shares of Common Stock required to be delivered upon
conversion of the Notes prior to such delivery upon any other national
securities exchange upon which the outstanding Common Stock is listed at the
time of such delivery.

            Section 10.09. Taxes on Conversion. The issue of stock certificates
on conversion of Notes 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 Notes pursuant hereto. The
Company shall not, however, be required to pay any such tax which may be payable
in respect of any transfer involved in the issue or delivery of shares of Common
Stock or the portion, if any, of the Notes which are not so converted in a name
other than that in which the Notes so converted were registered, and no such
issue or delivery shall be made unless and until the Person requesting such
issue 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 10.10. Conversion After Record Date. Except as provided
below, if any Notes are surrendered for conversion on any day other than an
Interest Payment Date, the Holder of such Notes shall not be entitled to receive
a separate cash payment for interest that has accrued on such Notes since the
prior Interest Payment Date. By delivery to the Holder of the number of shares
of Common Stock or other consideration issuable upon conversion in accordance
with this Article X, any accrued and unpaid interest on such Notes shall be
deemed to have been paid in full.

            If any Notes are surrendered for conversion subsequent to the Record
Date preceding an Interest Payment Date but on or prior to such Interest Payment
Date, the Holder of such Notes at the close of business on such Record Date
shall receive the interest payable on such Notes on such Interest Payment Date
notwithstanding the conversion thereof. Notes surrendered for conversion during
the period from the close of business on any Record Date preceding any Interest
Payment Date to the opening of business on such Interest Payment Date shall be
accompanied by payment by Holders, for the account of the Company, in New York
Clearing House funds or other funds of an amount equal to the interest payable
on such Interest Payment Date on the Notes being surrendered for conversion.
However, the preceding sentence

                                       42
<PAGE>
does not apply: (1) to Notes that have been called for redemption on a
redemption date that is after such Record Date and on or prior to the third
Business Day after such Interest Payment Date; (2) to Notes that have been
converted in connection with a Fundamental Change on a Fundamental Change
Purchase Date that is after such Record Date and on or prior to the
corresponding Interest Payment Date; or (3) to the extent of any overdue
interest, if overdue interest exists at the time of conversion with respect to
such Notes. Except as provided in Section 4.01 or this Section 10.10, no
adjustments in respect of payments of interest on Notes surrendered for
conversion or any dividends or distributions or interest on the Common Stock
issued upon conversion shall be made upon the conversion of any Notes.

            Section 10.11. Company Determination Final. Any determination that
the Company or the Board of Directors must make pursuant to this Article X shall
be conclusive if made in good faith and in accordance with the provisions of
this Article, absent manifest error, and set forth in a resolution of the Board
of Directors.

            Section 10.12. Responsibility of Trustee for Conversion Provisions.
The Trustee has no duty to determine when an adjustment under this Article X
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 Notes. The Trustee shall not be responsible for any failure
of the Company to comply with this Article X. Each Conversion Agent other than
the Company shall have the same protection under this Section 10.12 as the
Trustee.

            The rights, privileges, protections, immunities and benefits given
to the Trustee under the Indenture including, without limitation, its rights to
be indemnified, are extended to, and shall be enforceable by, the Trustee in
each of its capacities hereunder, and each paying agent or Conversion Agent
acting hereunder.

            Section 10.13. Conversion After a Public Acquirer Change of Control.
(a) In the event of a Public Acquirer Change of Control, the Company may, in
lieu of issuing the additional Common Stock pursuant to Section 10.01(b), elect
to adjust its Conversion Obligation and the Conversion Price such that from and
after the Effective Date of such Public Acquirer Change of Control, Holders of
the Notes shall be entitled to convert their Notes, in accordance with Section
10.02 hereof, into shares of Public Acquirer Common Stock and the Conversion
Price in effect immediately before the Public Acquirer Change of Control shall
be adjusted by multiplying it by a fraction:

                  (i) the numerator of which shall be the average of the Sale
      Prices of the Public Acquirer Common Stock for the five consecutive
      Trading Days commencing on the Trading Day next succeeding the Effective
      Date of such Public Acquirer Change of Control, and

                  (ii) the denominator of which shall be (A) in the case of a
      share exchange, consolidation, merger or binding share exchange, pursuant
      to which the Common Stock is converted into cash, securities or other
      property, the average value of all cash and any other consideration (as
      determined by the Board of Directors) paid or payable per share of Common
      Stock or (B) in the case of any other Public Acquirer Change of Control,
      the average of the Sale Prices of the Common Stock for the five

                                       43
<PAGE>
      consecutive Trading Days prior to but excluding the Effective Date of such
      Public Acquirer Change of Control.

            (b) The Company shall notify Holders of its election by providing
notice as set forth in Section 10.01(c).

            Section 10.14. Option to Satisfy Conversion Obligation with Cash,
Common Stock or Combination Thereof (a) (a) Except to the extent that the
Company has irrevocably elected to make a cash payment of principal upon
conversion pursuant to Section 10.14(b), the Company may elect to deliver either
shares of its Common Stock, cash or a combination of cash and shares of Common
Stock in satisfaction of the Company's obligation upon conversion of the Notes
(the "Conversion Obligation"). The Company shall notify the Holder or Holders,
as the case may be, through the Trustee, of the method the Company chooses to
satisfy its Conversion Obligation, (i) in the Company's notice of redemption, if
the Company has called the Notes for redemption, (ii) 26 Trading Days
immediately preceding the Maturity Date in respect of Notes to be converted
during the period beginning 25 Trading Days immediately preceding the Maturity
Date and ending one Trading Day immediately preceding the Maturity Date, and
(iii) no later than two Trading Days immediately following the Conversion Date
in all other cases (such period, the "Settlement Notice Period"). If the Company
elects to satisfy any portion of its Conversion Obligation by delivering cash,
the Company shall specify in such notice the portion to be paid in cash either
as a percentage of the Conversion Obligation or as the lesser of (a) a fixed
dollar amount and (b) the Conversion Value. The Company shall treat all Holders
converting on the same Trading Day in the same manner. The Company shall not
have any obligation to satisfy Conversion Obligations arising on different
Trading Days in the same manner.

            If the Company elects to satisfy any portion of the Conversion
Obligation in cash (other than cash in lieu of fractional shares, if
applicable), a Holder may retract its conversion notice at any time during the
two Trading-Day period beginning on the Trading Day after the last Trading Day
of the Settlement Notice Period (the "Conversion Retraction Period"); provided
that no such retraction can be made (and a conversion notice shall be
irrevocable) (x) if the Holder delivers the conversion notice in connection with
a redemption, (y) if the Holder delivers the conversion notice during the period
beginning 25 Trading Days immediately preceding the Maturity Date and ending one
Trading Day immediately preceding the Maturity Date or (z) if the Company has
irrevocably elected pursuant to Section 10.14(b) to make a cash payment of
principal upon conversion before such Holder delivers its conversion notice. No
retraction can be made and a conversion notice shall be irrevocable if the
Company does not elect to deliver cash upon conversion.

            With respect to each Holder that exercises its conversion right in
accordance with the Indenture, if such Holder's conversion notice has not been
retracted, assuming all of the other requirements have been satisfied by such
Holder, then settlement (a) in Common Stock only shall occur as soon as
practicable after the Company notifies the Holder or Holders that settlement
shall be in Common Stock only, and (b) in cash or in a combination of cash and
Common Stock shall occur on the second Trading Day following the final Trading
Day of the Conversion Period.

                                       44
<PAGE>
            Settlement amounts shall be computed as follows:

                  (i) if the Company elects to satisfy the entire Conversion
      Obligation in Common Stock, the Company shall deliver to such Holder, for
      each $1,000 principal amount of Notes converted, a number of shares of
      Common Stock equal to the quotient of $1,000 and the Conversion Price (the
      "Conversion Rate") in effect on the Conversion Date (plus cash in lieu of
      fractional shares, if applicable, calculated as provided in Section
      10.02);

                  (ii) if the Company elects to satisfy the entire Conversion
      Obligation in cash, the Company shall deliver to such holder for each
      $1,000 principal amount of Notes converted cash in an amount equal to the
      Conversion Value.

                  (iii) if the Company elects to satisfy the Conversion
      Obligation in a combination of cash (excluding any cash paid for
      fractional shares, if applicable) and Common Stock (including pursuant to
      Section 10.14 (b) hereof), the Company shall deliver to such Holder for
      each $1,000 principal amount of Notes converted:

                        (A) an amount in cash (the "Cash Amount") equal to (x)
            the fixed dollar amount per $1,000 principal amount of Notes of the
            Conversion Obligation to be satisfied in cash specified in the
            notice regarding the Company's chosen method of settlement or, if
            lower, the Conversion Value in cash, or (y) the percentage of the
            Conversion Obligation to be satisfied in cash specified in the
            notice regarding the Company's chosen method of settlement
            multiplied by the Conversion Value, as the case may be; and

                        (B) a number of shares of Common Stock for each of the
            20 trading days in the Conversion Period equal to 1/20th of (x) the
            Conversion Rate in effect on that day minus (y) the quotient of the
            Cash Amount divided by the Applicable Stock Price for that day (plus
            cash in lieu of fractional shares, if applicable, calculated as
            provided in Section 10.02).

            (b) Notwithstanding anything to the contrary in this Indenture, at
any time prior to the 26th Trading Day preceding the Maturity Date, the Company
may irrevocably elect, in its sole discretion without the consent of the Holders
of the Notes, by written notice to the Trustee and the Holders of the Notes, to
satisfy in cash the Conversion Obligation with respect to the principal amount
of Notes to be converted after the date of such election, with any remaining
amount of the Conversion Obligation to be satisfied in shares of Common Stock.
The settlement amount will be computed as described under clause (a)(iii) above,
using the $1,000 as the fixed dollar amount per $1,000 principal amount of Notes
of the Conversion Obligation to be satisfied in cash.

            (c) For purposes of this Section 10.14, the following terms shall
have the meanings indicated:

                  (i)   "Applicable Stock Price" on any Trading Day means (i)
      the volume-weighted average price per share of the Common Stock on such
      Trading Day as displayed under the heading "Bloomberg VWAP" on Bloomberg
      (or any successor

                                       45
<PAGE>
      service) page PKS <equity> AQR (or any successor page) in respect of the
      period from 9:30 a.m. to 4:00 p.m., New York City time, on that Trading
      Day or (ii), if such price is not available, the market value per share of
      the Common Stock on that day as determined by a nationally recognized
      independent investment banking firm retained for this purpose by the
      Company.

                  (ii) "Conversion Period" means the 20 trading-day period:

                        (A) beginning on the Redemption Date, if the Holder
            delivers the conversion notice in connection with a redemption;

                        (B) beginning on the Maturity Date, if the Holder
            delivers the conversion notice during the period beginning 25
            Trading Days immediately preceding the Maturity Date and ending one
            Trading Day immediately preceding the Maturity Date (whether or not
            the Company has irrevocably elected to make a cash payment of
            principal upon conversion);

                        (C) beginning on the Trading Day following the Company's
            receipt of the Holder's conversion notice, if the Company has
            irrevocably elected pursuant to Section 10.14(b) to make a cash
            payment of principal upon conversion, provided that if the Holder
            submits its conversion notice during the period beginning 25 Trading
            Days immediately preceding the Maturity Date and ending one Trading
            Day immediately preceding the Maturity Date, the Conversion Period
            shall begin on the Maturity Date; and

                        (D) beginning on the Trading Day following the final
            Trading Day of the Conversion Retraction Period, in all other cases.

                  (iii) "Conversion Value" for every $1,000 principal amount of
      a Note being converted means an amount equal to the sum of the daily
      conversion values for each of the 20 Trading Days in the Conversion
      Period, where the "daily conversion value" for any Trading Day equals
      1/20th of:

                        (A) the Conversion Rate in effect on that day multiplied
            by

                        (B) the Applicable Stock Price on that day,

      provided that, with respect any conversion (i) during the period beginning
      25 Trading Days immediately preceding the Maturity Date and ending one
      Trading Day immediately preceding the Maturity Day or (ii) of a Note
      called for redemption, if on the Conversion Date the Applicable Stock
      Price exceeds the then applicable Conversion Price, the Conversion Value
      shall not be less than $1,000.

                                       46
<PAGE>
                                   ARTICLE XI

                                  MISCELLANEOUS

            Section 11.01. Trust Indenture Act Controls. If any provision of
this Indenture limits, qualifies or conflicts with the duties imposed by
TIASection318(c), the imposed duties shall control.

            Section 11.02. Notices. Any notice or communication by the Company
or the Trustee to the others is duly given if in writing (which may be via
facsimile) and delivered in Person or mailed by first class mail:

            if to the Company:

            Six Flags, Inc.
            122 East 42nd Street
            New York, New York 10168
            Attention:  Chief Financial Officer
            Facsimile number:         (212) 949-6203
            Telephone number: (212) 599-4690

            with a copy to:

            Weil, Gotshal & Manges LLP
            767 Fifth Avenue
            New York, New York  10153
            Attention:        David Lefkowitz, Esq.
            Facsimile number: (212) 310-8007

            if to the Trustee:

            The Bank of New York
            101 Barclay Street- 8W
            New York, New York 10286
            Attention:        Julie Salovitch-Miller
            Facsimile number: (212) 815-5707

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

            All notices and communications (other than those sent to Holders)
shall be in writing and shall be deemed to have been duly given when received.

            Any notice or communication to a Holder shall be mailed by first
class mail to its address shown on the register kept by the Registrar. Any
notice or communication shall also be so mailed to any Person described in Trust
Indenture Act Section 313(c), to the extent required by the

                                       47
<PAGE>
Trust Indenture Act. Failure to mail a notice or communication to a Holder or
any defect in it shall not affect its sufficiency with respect to other Holders.

            If the Company mails a notice or communication to Holders, it shall
mail a copy to the Trustee and any Registrar, paying agent and Conversion Agent
at the same time.

            Section 11.03. Communication by Holders with Other Holders(a) .
Holders may communicate pursuant to Trust Indenture Act Section 312(b) with
other Holders with respect to their rights under the Indenture or the Notes. The
Company, the Trustee, the Registrar, the paying agent, the Conversion Agent and
anyone else shall have the protection of Trust Indenture Act Section 312(c).

            Section 11.04. Rules by Trustee and Agents. The Trustee may make
reasonable rules for action by or at a meeting of Holders. The Registrar or any
paying agent may make reasonable rules and set reasonable requirements for its
functions.

            Section 11.05. No Personal Liability of Directors, Officers,
Employees and Stockholders. No past, present or future director, officer,
employee, incorporator or stockholder of the Company, as such, shall have any
liability for any obligations of the Company under the Notes or this
Supplemental Indenture or for any claim based on, in respect of, or by reason
of, such obligations or their creation. Each Holder by accepting a Note waives
and releases all such liability. The waiver and release are part of the
consideration for issuance of the Notes.

            Section 11.06. Governing Law. THIS SECOND SUPPLEMENTAL INDENTURE AND
THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK.

            Section 11.07. No Adverse Interpretation of Other Agreements. This
Supplemental Indenture may not be used to interpret any other indenture, loan or
debt agreement of the Company or its Subsidiaries or of any other Person. Any
such indenture, loan or debt agreement may not be used to interpret this
Supplemental Indenture.

            Section 11.08. Successors. All agreements of the Company in the
Indenture and the Notes shall bind its successors. All agreements of the Trustee
in the Indenture shall bind its successors.

            Section 11.09. Severability. In case any provision in the Indenture
or in the Notes shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.

            Section 11.10. Counterpart Originals. The parties may sign any
number of copies of this Supplemental Indenture. Each signed copy shall be an
original, but all of them together represent the same agreement.

            Section 11.11. Table of Contents, Headings, etc. The table of
contents and headings of the Articles and Sections of this Supplemental
Indenture have been inserted for convenience of reference only, are not to be
considered a part of this Supplemental Indenture and shall in no way modify or
restrict any of the terms or provisions hereof.

                                       48
<PAGE>
            Section 11.12. Amendment of Section 7.06 of the Original Indenture.
The reference to "Section 6.01(g) or (h)" in the Original Indenture shall be
deemed to be references to Section 7.01(g) or (h) of this Supplemental
Indenture.

            Section 11.13. Recitals by the Corporation. The recitals in this
Supplemental Indenture are made by the Company only and not by the Trustee, and
all of the provisions contained in the Original Indenture in respect of the
rights, privileges, immunities, powers and duties of the Trustee shall be
applicable in respect of the Notes and of this Supplemental Indenture as full
and with like effects as if set forth herein in full.

            Section 11.14. Ratification and Incorporation of Original Indenture.
As supplemented hereby, the Original Indenture is in all respects ratified and
confirmed, and the Original Indenture and this Supplemental Indenture shall be
read, taken and construed as one and the same instrument.

                         [Signatures on following page]

                                       49
<PAGE>
                                   SIGNATURES

                                        SIX FLAGS, INC.

                                        By: /s/ James F. Dannhauser
                                            -----------------------------------
                                            Name:  James F. Dannhauser
                                            Title: Chief Financial Officer

                                        THE BANK OF NEW YORK

                                        By: /s/ Julie Salovitch-Miller
                                            -----------------------------------
                                            Name:  Julie Salovitch-Miller
                                            Title: Vice-President

                                       50
<PAGE>
                                                                       EXHIBIT A

                                 [Face of Note]

                     4.50% CONVERTIBLE SENIOR NOTE DUE 2015

No.:                                                          CUSIP: 83001P AJ 8

                                 SIX FLAGS, INC.

promises to pay to CEDE & CO., or registered assigns, the principal sum of
[                  ]  DOLLARS ($                         ) on May 15, 2015.

Interest Payment Dates: May 15 and November 15, commencing May 15, 2005

Record Dates: May 1 and November 1

                                        Dated:
                                        SIX FLAGS, INC.

                                        By:
                                           -------------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------

This is one of the Debt Securities of the series designated therein referred to
in the within-mentioned Indenture:

THE BANK OF NEW YORK,
as Trustee

By:
   -------------------------------------
             Authorized Signatory

                                      B-1
<PAGE>
                                 [Back of Note]

                     4.50% Convertible Senior Notes due 2015

[Insert the Global Note Legend, if applicable, pursuant to the provisions of the
                                   Indenture]

            Capitalized terms used herein shall have the meanings assigned to
them in the Indenture referred to below unless otherwise indicated.

            1. Interest. Six Flags, Inc., a Delaware corporation (the
"Company"), promises to pay interest on the principal amount of this Note at
4.50% per annum from November 19, 2004 until maturity, or in the event of
certain non-convertibility periods, 10.00%, as described in Section 10.03 of the
Indenture. The Company will pay interest semi-annually on May 15 and November 15
of each such year, or if any such day is not a business day, on the next
succeeding business day (each an "Interest Payment Date"). Interest on the Notes
will accrue from the most recent date to which interest has been paid or, if no
interest has been paid, from the date of issuance; provided that if there is no
existing Default in the payment of interest, and if this Note is authenticated
between a record date referred to on the face hereof and the next succeeding
Interest Payment Date, interest shall accrue from such next succeeding Interest
Payment Date.

            To the extent lawful, the Company shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
principal and premium, if any, from time to time on demand at a rate that is 1%
per annum in excess of the interest rate then in effect, and it shall pay
interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue installments of interest (without regard to any
applicable grace periods) from time to time on demand at the same rate to the
extent lawful. Interest will be computed on the basis of a 360-day year
comprised of twelve 30-day months.

            The Company shall not make a separate cash payment for accrued and
unpaid interest on any Note that is converted into Common Stock.

            If this Note is redeemed or repurchased by the Company on a date
that is after the record date and on or prior to the corresponding Interest
Payment Date, interest accrued and unpaid hereon to but not including the
applicable redemption date or Fundamental Change Purchase Date, as the case may
be, shall be paid to the same Holder to whom the Company pays the principal of
this Note.

            Interest on Notes converted after a record date but prior to the
corresponding Interest Payment Date shall be paid to the Holder of the Notes on
the record date but, upon conversion, the Holder must pay the Company the
interest that have accrued and shall be paid on such Interest Payment Date;
provided that no such payment need be made with respect to Notes that shall be
redeemed by the Company after a record date and on or prior to the third
Business Day after the corresponding Interest Payment Date.

            2. Method of Payment. The Company will pay interest on the Notes
(except defaulted interest) and to the Persons in whose name(s) this Note is
registered at the close of business on the May 1 or the November 1 next
preceding the Interest Payment Date, even if such

                                      B-2
<PAGE>
Notes are canceled after such record date and on or before such Interest Payment
Date, except as provided in Section 2.17 of the Original Indenture with respect
to defaulted interest. The Notes will be payable as to principal, premium, if
any, and interest at the office or agency of the Company maintained for such
purpose within or without The City and State of New York, or, at the option of
the Company, payment of interest may be made by check mailed to the Holders at
their addresses set forth in the register of Holders; provided that payment by
wire transfer of immediately available funds will be required with respect to
principal of and interest and premium on, the Global Note and all other Notes
the Holders of which shall have provided wire transfer instructions to the
Company or the Paying Agent on or prior to the applicable record date. Such
payment shall be in such coin or currency of the United States of America as at
the time of payment is legal tender for payment of public and private debts.

            3. Paying Agent and Registrar. Initially, The Bank of New York, the
Trustee under the Indenture, will act as paying agent and Registrar. The Company
may change any paying agent or Registrar without notice to any Holder. The
Company or any of its Subsidiaries may act in any such capacity.

            4. Indenture. The Company issued the Notes under an Indenture, dated
as of June 30, 1999 (the "Original Indenture"), as supplemented by the Second
Supplemental Indenture, dated as of November 19, 2004, between the Company and
the Trustee. The Original Indenture, as may be amended and supplemented to the
date hereof, including by the Second Supplemental Indenture, is herein called
the "Indenture." The terms of the Notes include those stated in the Indenture
and those made part of the Indenture by reference to the Trust Indenture Act of
1939, as amended (15 U.S. Code Sections 77aaa-77bbbb). The Notes are
subject to all such terms, and Holders are referred to the Indenture and such
Act for a statement of such terms. To the extent any provision of this Note
conflicts with the express provisions of the Indenture, the provisions of the
Indenture shall govern and be controlling. The Notes are obligations of the
Company initially in the aggregate principal amount of $260,000,000 (or such
greater amount necessary to reflect the exercise by the underwriter of its
option to purchase additional Notes in compliance with the underwriting
agreement, but not in excess of $299,000,000). The Company is permitted to issue
Additional Notes under the Indenture in an unlimited principal amount. Any such
Additional Notes that are actually issued will be treated as issued and
Outstanding Notes (and as the same class as the initial Notes) for all purposes
of the Indenture, unless the context clearly indicated otherwise.

            5. Optional Redemption. Except as provided below, on or after May
15, 2010, the Company shall have the option to redeem the Notes, in whole or in
part, upon not less than 20 nor more than 60 days' notice, at the redemption
prices (expressed as percentages of principal amount) set forth below plus
accrued and unpaid interest thereon to the applicable redemption date, if
redeemed during the twelve-month period beginning on May 15 of the years
indicated below:

<TABLE>
<CAPTION>
Year                                                                Percentage
<S>                                                                 <C>
2010..........................................................          102.143%
2011..........................................................          101.716%
2012..........................................................          101.286%
2013..........................................................          100.857%
</TABLE>

                                      B-3
<PAGE>
<TABLE>
<S>                                                                     <C>
2014..........................................................          100.429%
2015..........................................................          100.000%
</TABLE>

            The Company may not redeem the Notes if it has failed to pay
interest on the Notes and such failure to pay is continuing.

            6. Mandatory Redemption. Except as set forth in paragraph 7 below,
the Company shall not be required to make mandatory redemption or sinking fund
payments with respect to the Notes.

            7. Purchase By the Company at the Option of the Holder. At the
option of the Holder and subject to the terms and conditions of the Indenture,
the Company shall become obligated to offer to purchase the Notes held by such
Holder within 30 days after the occurrence of a Fundamental Change for a
Fundamental Change Purchase Price equal to the principal amount of plus accrued
and unpaid interest on such Note on the Fundamental Change Purchase Date. The
Fundamental Change Purchase Date shall be between 30 and 60 days of the
Company's delivery of the notice described in the preceding sentence. The
Fundamental Change Purchase Price shall be paid in cash.

            Holders have the right to withdraw any Fundamental Change Purchase
Notice, as the case may be, by delivering to the paying agent a written notice
of withdrawal in accordance with the provisions of the Indenture.

            If cash sufficient to pay the Fundamental Change Purchase Price of
all Notes, or portions thereof to be purchased as of the Fundamental Change
Purchase Date, is deposited with the paying agent on the Business Day following
the Fundamental Change Purchase Date, interest shall cease to accrue on such
Notes (or portions thereof) immediately after such Fundamental Change Purchase
Date, and the Holder thereof shall have no other rights as such other than the
right to receive the Fundamental Change Purchase Price upon surrender of such
Note.

            8. Notice of Redemption. Notice of redemption will be mailed at
least 20 days but not more than 60 days before the redemption date to each
Holder whose Notes are to be redeemed at its registered address. Notes in
denominations larger than $1,000 may be redeemed in part but only in whole
multiples of $1,000, unless all of the Notes held by a Holder are to be
redeemed. On and after the redemption date interest ceases to accrue on Notes or
portions thereof called for redemption.

            9. Conversion. Subject to and in compliance with the provisions of
the Indenture, a Holder is entitled, at such Holder's option, to convert the
Holder's Note (or any portion of the principal amount thereof that is $1,000 or
an integral multiple of $1,000), into fully paid and nonassessable shares of
Common Stock at the Conversion Price in effect at the time of conversion. The
Notes shall not be convertible during any non-convertibility period described in
Section 10.03 of the Indenture. Except if the Company has irrevocably elected to
make a cash payment of principal upon conversion pursuant to Section 10.14(b) of
the Indenture, the Company may choose to deliver either shares of Common Stock,
cash or a combination of cash and shares of Common Stock upon conversion. If the
Company has irrevocably elected to

                                      B-4
<PAGE>
make a cash payment of principal upon conversion pursuant to Section 10.14(b) of
the Indenture, then the principal amount of the Notes must be converted in cash,
with any remaining amount to be satisfied in shares of Common Stock, subject to
the terms and conditions of the Indenture.

            A Note in respect of which a Holder has delivered a Fundamental
Change Purchase Notice, exercising the option of such Holder to require the
Company to purchase such Note, may be converted only if such Change of Control
Purchase Notice is withdrawn in accordance with the terms of the Indenture.

            The initial Conversion Price is $6.35 per share, subject to
adjustment in certain events described in the Indenture. No fractional shares of
Common Stock shall be issued upon conversion of any Note. A Holder that
surrenders Notes for conversion shall receive, at the Company's option, in lieu
of any fractional share of Common Stock, either (i) cash or a check or (ii) a
rounded up number of shares to be delivered upon conversion to the nearest whole
share.

            To surrender a Note for conversion, a Holder must (i) 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, (ii)
surrender the Note to the Conversion Agent, (iii) furnish appropriate
endorsements and transfer documents and (iv) pay any transfer or similar tax, if
required by the Indenture.

            If the Company (i) is a party to a consolidation or merger, (ii)
reclassifies the Common Stock or (iii) sells, leases, transfers, conveys or
otherwise disposes of all or substantially all of its assets and those of its
Subsidiaries taken as a whole to any Person, the right to convert a Note into
shares of Common Stock may be changed into a right to convert it into
securities, cash or other assets of the Company or such other Person, in each
case in accordance with the Indenture.

            10. Denominations, Transfer, Exchange. The Notes are in registered
form without coupons in denominations of $1,000 and integral multiples of
$1,000. The transfer of Notes may be registered and Notes may be exchanged as
provided in the Indenture. The Registrar and the Trustee may require a Holder,
among other things, to furnish appropriate endorsements and transfer documents
and the Company may require a Holder to pay any taxes and fees required by law
or permitted by the Indenture. The Company need not exchange or register the
transfer of any Note or portion of a Note selected for redemption, except for
the unredeemed portion of any Note being redeemed in part. Also, the Company
need not exchange or register the transfer of any Note during the period of 15
days before mailing a notice of redemption or any Note so selected for
redemption, in whole or in part, except the unredeemed portion of any note being
redeemed in part.

            11. Persons Deemed Owners. The registered Holder of a Note may be
treated as its owner for all purposes.

            12. Amendment, Supplement and Waiver. Subject to certain exceptions,
the Indenture or the Notes may be amended or supplemented with the consent of
the Holders of at least a majority in principal amount of the then Outstanding
Notes voting as a single class, and any existing default or compliance with any
provision of the Indenture or the Notes may be

                                      B-5
<PAGE>
waived with the consent of the Holders of a majority in aggregate principal
amount of the then Outstanding Notes voting as a single class. Without the
consent of any Holder of a Note, the Indenture or the Notes may be amended or
supplemented to cure any ambiguity, defect or inconsistency, to provide for
uncertificated Notes in addition to or in place of certificated Notes, to
provide for the assumption of the Company's obligations to Holders of the Notes
in case of a merger or consolidation or sale of all or substantially all of the
Company's assets, to make any change that would provide any additional rights or
benefits to the Holders of the Notes or that does not adversely affect the legal
rights under the Indenture of any such Holder, to comply with the requirements
of the Securities and Exchange Commission in order to effect or maintain the
qualification of the Indenture under the Trust Indenture Act, providing for
conversion rights of holders of notes if any reclassification or change of our
common stock or any consolidation, merger or sale of all or substantially all of
our assets occurs, or reducing the Conversion Price; provided that the reduction
will not adversely affect the interests of the Holders of Notes.

            13. Defaults and Remedies. Events of Default include: (i) default
for 30 days in the payment when due of interest on the Notes; (ii) default in
payment when due of principal of or premium, if any, on the Notes when the same
becomes due and payable, at maturity, upon redemption or otherwise (including in
connection with a Fundamental Change), (iii) failure by the Company to comply
for (A) a period of 30 days with any of the provisions of Section 5.01 of the
Supplemental Indenture (other than a failure to purchase Notes, which is covered
by clause (ii) above) or (B) 30 days after notice to the Company by the Trustee
or the Holders of at least 25% in aggregate principal amount of the Notes then
Outstanding voting as a single class with provisions of Section 7.01 of the
Supplemental Indenture; (iv) failure by the Company for 60 days after notice to
the Company by the Trustee or the Holders of at least 25% in principal amount of
the Notes then Outstanding voting as a single class to comply with certain other
agreements in the Indenture or the Notes; (v) failure to pay Indebtedness within
any applicable grace period after final maturity or the acceleration of such
Indebtedness because of a default where the total amount of such Indebtedness
unpaid or accelerated at any time exceed $20.0 million; (vi) certain final
judgments for the payment of money that remain undischarged for a period of 60
days provided that the aggregate of all such undischarged judgments exceeds
$20.0 million and (vii) certain events of bankruptcy or insolvency with respect
to the Company or any of its Restricted Subsidiaries. If any Event of Default
occurs and is continuing, the Trustee or the Holders of at least 25% in
principal amount of the then Outstanding Notes may declare all the Notes to be
due and payable immediately. Notwithstanding the foregoing, in the case of an
Event of Default arising from certain events of bankruptcy or insolvency, all
Outstanding Notes will become due and payable without further action or notice.
Holders may not enforce the Indenture or the Notes except as provided in the
Indenture. Subject to certain limitations, Holders of a majority in principal
amount of the then Outstanding Notes may direct the Trustee in its exercise of
any trust or power. The Trustee may withhold from Holders of the Notes notice of
any continuing Default or Event of Default (except a Default or Event of Default
relating to the payment of principal or interest) if it determines that
withholding notice is in their interest. The Holders of a majority in aggregate
principal amount of the Notes then Outstanding by notice to the Trustee may on
behalf of the Holders of all of the Notes waive any existing Default or Event of
Default and its consequences under the Indenture except a continuing Default or
Event of Default in the payment of the principal of, or interest on, the Notes.
The Company is required to deliver to the Trustee annually a statement regarding
compliance with the Indenture, and the

                                      B-6
<PAGE>
Company is required upon becoming aware of any Default or Event of Default to
deliver to the Trustee a statement specifying such Default or Event of Default.

            14. Trustee Dealings with Company. The Trustee, in its individual or
any other capacity, may make loans to, accept deposits from, and perform
services for the Company or its Affiliates, and may otherwise deal with the
Company or its Affiliates, as if it were not the Trustee.

            15. No Recourse Against Others. A director, officer, employee,
incorporator or stockholder, of the Company, as such, shall not have any
liability for any obligations of the Company under the Notes or the Indenture or
for any claim based on, in respect of, or by reason of, such obligations or
their creation. Each Holder by accepting a Note waives and releases all such
liability. The waiver and release are part of the consideration for the issuance
of the Notes.

            16. Treatment of Notes. Each holder, by acceptance of a Note, and
beneficial owner, by acceptance of a beneficial ownership interest in a Note,
agrees to treat the Notes as indebtedness of the Company for U.S. federal income
tax purposes and to not take any action inconsistent with such treatment.

            17. Authentication. This Note shall not be valid until authenticated
by the manual signature of the Trustee or an authenticating agent.

            18. Abbreviations. Customary abbreviations may be used in the name
of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN NET (=
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 Gifts
to Minors Act).

            19. CUSIP Numbers. Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused
CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers
in notices of redemption as a convenience to Holders. No representation is made
as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

            20. GOVERNING LAW. THIS NOTE AND THE INDENTURE SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

            The Company will furnish to any Holder upon written request and
without charge a copy of the Indenture. Requests may be made to:

            Six Flags, Inc.
            122 East 42nd Street
            49th Floor
            New York, New York  10168
            Attention:  General Counsel

                                      B-7
<PAGE>
                                 ASSIGNMENT FORM

To assign this Note, fill in the form below: (I) or (we) assign and transfer
this Note to

-----------------------------------------------------------------------------
(Insert assignee's soc. or tax I.D. no.)

------------------------------------------------------------------------------

------------------------------------------------------------------------------

------------------------------------------------------------------------------

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

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

------------------------------------------------------------------------------

Date:
     --------------

                              Your Signature:
                                             -----------------------------------
                              (Sign exactly as your name appears on the face of
                              this Note)

Signature Guarantee.

(Participant in a Recognized Signature
Guarantee Medallion Program)

                                      B-8
<PAGE>
                   FORM OF FUNDAMENTAL CHANGE PURCHASE NOTICE

To: Six Flags, Inc.

            The undersigned registered owner of this Note hereby irrevocably
acknowledges receipt of a notice from Six Flags, Inc. (the "Company") as to the
occurrence of a Fundamental Change with respect to the Company and requests and
instructs the Company to repay the entire principal amount of this Note, or the
portion thereof (which is $1,000 principal amount or an integral multiple
thereof) below designated, in accordance with the terms of the Indenture
referred to in this Note, together with interest accrued and unpaid to, but
excluding, such date, to the registered Holder hereof.

            Your Name:
                      ----------------------------------------------------------
                (Print your name exactly as it appears on the face of this Note)

            Dated:
                  --------------------------------------------------------------

            Your Signature:
                           -----------------------------------------------------
                    (Sign exactly as your name appears on the face of this Note)

            Signature Guarantee*:
                                 -----------------------------------------------

            Social Security or other Taxpayer Identification Number:
                                                                    ------------

            Principal amount to be repurchased (if less than all):
                                                                  --------------

            Certificate number (if applicable):
                                               ---------------------------------

----------
*     Participant in a recognized Signature Guarantee Medallion Program (or
      other signature guarantor acceptable to the Trustee).

                                      C-1
<PAGE>
                            FORM OF CONVERSION NOTICE

TO: Six Flags, Inc.

            The undersigned registered owner of this Note hereby irrevocably
exercises the option to convert this Note, or the portion hereof (which is
$1,000 principal amount or an integral multiple thereof) below designated, into
shares of Common Stock in accordance with the terms of the Indenture referred to
in this Note, and directs that the shares issuable and deliverable upon such
conversion, together with any check in payment for fractional shares, if
applicable, and any Notes representing any unconverted principal amount hereof,
be issued and delivered to the registered Holder hereof unless a different name
has been indicated below. If shares or any portion of this Note not converted
are to be issued in the name of a Person other than the undersigned, the
undersigned shall pay all transfer taxes payable with respect thereto. To the
extent provided in the Indenture, any amount required to be paid to the
undersigned on account of interest accompanies this Note.

            Your Name:
                      ----------------------------------------------------------
                (Print your name exactly as it appears on the face of this Note)

            Dated:
                  --------------------------------------------------------------

            Your Signature:
                           -----------------------------------------------------
                    (Sign exactly as your name appears on the face of this Note)

                        Signature Guarantee*:
                                             -----------------------------------

            Social Security or other Taxpayer Identification Number:
                                                                    ------------

            Principal amount to be converted (if less than all):$
                                                                 ---------------

            Fill in for registration of shares (if to be issued) and Notes (if
to be delivered) other than to and in the name of the registered Holder

--------------------------------------------------------------------------------
(Name)

--------------------------------------------------------------------------------
(Street Address)

--------------------------------------------------------------------------------
(City, State and Zip Code)

----------
*     Participant in a recognized Signature Guarantee Medallion Program (or
      other signature guarantor acceptable to the Trustee).

                                      C-1
<PAGE>
             SCHEDULE OF INCREASES OR DECREASES IN THE GLOBAL NOTE1

    The following increases or decreases in this Global Note have been made:

<TABLE>
<CAPTION>
                                                  Principal Amount
            Amount of                            of this Global Note     Signature of
           decrease in       Amount of increase    following such     authorized officer
        Principal Amount    in Principal Amount      decrease or         of Trustee or
Date   of this Global Note  of this Global Note       increase          Note Custodian
-----  -------------------  -------------------  -------------------  ------------------
<S>    <C>                  <C>                  <C>                  <C>

</TABLE>

----------
1     Insert this table only in a Global Note.

                                      C-2EXHIBIT 4.01

 

Exhibit 4.01

AMERICAN STANDARD INC., as Issuer

AMERICAN STANDARD COMPANIES INC., as Guarantor

and

THE BANK OF NEW YORK, as Trustee

SEVENTH SUPPLEMENTAL INDENTURE

Dated as of November 19, 2004

Senior Debt Securities

 

     THIS SEVENTH SUPPLEMENTAL INDENTURE, dated as of November 19, 2004 (this
“Seventh Supplemental Indenture”), to the Indenture, dated as of January 15,
1998 (as amended, modified or supplemented from time to time and as amended,
modified and supplemented by those six supplemental indentures, the
“Indenture”), among AMERICAN STANDARD INC., a Delaware corporation (hereinafter
called the “Issuer”), having its principal office at One Centennial Avenue,
P.O. Box 6820, Piscataway, New Jersey 08835-6820, AMERICAN STANDARD COMPANIES
INC., a Delaware corporation (hereinafter called the “Guarantor”), having its
principal office at One Centennial Avenue, P.O. Box 6820, Piscataway, New
Jersey 08835-6820, AMERICAN STANDARD INTERNATIONAL INC., a Delaware corporation
(hereinafter called the “ASII”), having its principal office at One Centennial
Avenue, P.O. Box 6820, Piscataway, New Jersey 08835-6820 and THE BANK OF NEW
YORK, a New York banking corporation, as Trustee hereunder (hereafter called
the “Trustee”), having its principal office at 101 Barclay Street, Floor 21
West, New York, New York 10286. Capitalized terms used in this Seventh
Supplemental Indenture but not defined herein shall have the meaning ascribed
to such terms in the Indenture.

RECITALS

     WHEREAS, the Issuer, the Guarantor and the Trustee have each duly
authorized the execution and delivery of the Indenture to provide for the
issuance from time to time of one or more series of its senior debt securities
(the “Securities”) to be issued in one or more series as in the Indenture
provided;

     WHEREAS, the Issuer and the Guarantor desire and have requested the
Trustee to join them in the execution and delivery of this Seventh Supplemental
Indenture in order to establish and provide for the issuance by ASII a
guarantee of the Securities of the Issuer (attached hereto as Exhibit A)
currently outstanding and to be issued under the Indenture;

     WHEREAS, Section 9.01 of the Indenture provides that a supplemental
indenture may be entered into by the Issuer, the Guarantor and the Trustee for
such purpose provided certain conditions are met;

     WHEREAS, the conditions set forth in the Indenture for the execution and
delivery of this Seventh Supplemental Indenture have been complied with; and

     WHEREAS, all things necessary to make this Seventh Supplemental Indenture
a valid agreement of the Issuer, the Guarantor, ASII and the Trustee, in
accordance with its terms, and a valid amendment of, and supplement to, the
Indenture have been done.

     NOW, THEREFORE, the Issuer, the Guarantor, ASII and the Trustee, for and
in consideration of the premises and of other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, and for the equal
and proportionate benefit of all Holders of the Securities, hereby join in the
execution and delivery of this Seventh Supplemental Indenture in order to
supplement the Indenture as follows:

 

Section 1. SCOPE OF THIS SEVENTH SUPPLEMENTAL INDENTURE

     The changes, modifications and supplements to the Indenture effected by
this Seventh Supplemental Indenture in Section 2 hereof shall be applicable
with respect to, and govern the terms of the Securities.

Section 2. ADDITIONAL PROVISIONS

     (a) ADDITIONAL DEFINITIONS. Each of the following definitions, which
constitute part of this Seventh Supplemental Indenture, shall be inserted in
proper alphabetical order in Article I of the Indenture. Each definition set
forth in this Seventh Supplemental Indenture shall have the meaning set forth
below for purposes of terms of the Indenture and this Seventh Supplemental
Indenture.

     “ASII” means American Standard International Inc., a Delaware corporation.

     “ASII Guaranty “ shall mean that certain Guaranty dated as of November
19, 2004, made by ASII in favor of the Trustee, attached hereto as Exhibit D.

     (b) ADDITIONAL SECTION. The following Section, which constitutes part of
this Seventh Supplemental Indenture, shall be amended as set forth below in
such Section of the Indenture.

               
     Article X (Covenants) is hereby amended by adding the following Section in
its entirety as Section 10.11.

“Upon execution and delivery of the Seventh Supplemental Indenture,
Guarantor hereby covenants to cause ASII to execute and deliver the ASII
Guaranty. ASII hereby agrees to observe, comply with and be bound by
each and every covenant and other obligation in the Indenture to which
American Standard Companies Inc. as “Guarantor” has agreed in the
Indenture to observe, comply with or be bound by, to the same extent as
if the definition of “Guarantor” in the Indenture included ASII..”

     (c) ADDITIONAL EXHIBIT. Upon the effectiveness of this Seventh
Supplemental Indenture as set forth in Section 4 hereof, the attached Exhibit D
to Indenture shall be made a part of the Indenture and be consider an Exhibit
thereto.

Section 3. TRUSTEE ACKNOWLEDGMENT. The Issuer and the Guarantor
hereby request that the Trustee (a) execute and deliver this Seventh
Supplemental Indenture and (b) accept and hold the ASII Guaranty for
the benefit of the Holders of the Securities. The Trustee
acknowledges receipt of a counterpart of the ASII Guaranty executed
by ASII, together with (i) the documents provided for in Section 9.03
of the Indenture, and (ii) resolutions of the board of directors of
ASII as certified by the Secretary or Assistant Secretary of ASII.

- 2 -

 

Section 4. EFFECTIVENESS AND EFFECT

     This Seventh Supplemental Indenture shall become effective upon execution
hereof by the Issuer, the Guarantor, ASII and the Trustee. ASII is executing
this Seventh Supplemental Indenture to confirm its agreement to execute the
Guaranty. The provisions set forth in this Seventh Supplemental Indenture
shall be deemed to be, and shall be construed as part of, the Indenture. All
references to the Indenture in the Indenture or in any other agreement,
document or instrument delivered in connection therewith or pursuant thereto
shall be deemed to refer to the Indenture as amended by this Seventh
Supplemental Indenture. The Indenture shall remain in full force and effect as
modified by this Seventh Supplemental Indenture.

Section 5. COUNTERPARTS

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

Section 6. GOVERNING LAW

     This Seventh Supplemental Indenture shall be governed by and construed in
accordance with the laws of the state of New York, as applied to contracts made
and performed within the state of New York.

Section 7. TRUSTEE

     The Trustee makes no representations as to the validity or sufficiency of
this Seventh Supplemental Indenture. The recitals and statements herein are
deemed to be those of the Issuer and the Guarantor and not of the Trustee.

- 3 -

 

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

	 	 	 	 	 
	 	 	AMERICAN STANDARD INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ R. Scott Massengill
	

	 	 	 	
 
	

	 	Name:
	 	R. Scott Massengill
	

	 	Title:
	 	Vice President and Treasurer
	 
	 	 	 	 
	 	 	AMERICAN STANDARD COMPANIES INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ R. Scott Massengill
	

	 	 	 	
 
	

	 	Name:
	 	R. Scott Massengill
	

	 	Title:
	 	Vice President and Treasurer
	 
	 	 	 	 
	 	 	AMERICAN STANDARD INTERNATIONAL, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ R. Scott Massengill
	

	 	 	 	
 
	

	 	Name:
	 	R. Scott Massengill
	

	 	Title:
	 	Vice President and Treasurer
	 
	 	 	 	 
	 	 	THE BANK OF NEW YORK, as Trustee
	 
	 	 	 	 
	

	 	By:	 	/s/ Robert A. Massimillo
	

	 	 	 	
 
	

	 	Name:	 	Robert A. Massimillo
	

	 	Title:	 	Vice President

 

Exhibit D to
Indenture and Exhibit A to 7th Supplemental Indenture

GUARANTY

     This Guaranty (this “Guaranty”), dated as of November 19, 2004, is made by
American Standard International Inc., a Delaware corporation (“ASII”) to The
Bank of New York, a New York banking corporation, as Trustee (in such capacity,
the “Trustee”) in connection with that certain Base Indenture dated as of
January 15, 1998, between American Standard Inc., a Delaware corporation (the
“Issuer”), American Standard Companies Inc., a Delaware corporation (the
“Parent”) and the Trustee, as supplemented by those certain six supplemental
indentures, relating to seven series of notes (as supplemented from time to
time, the “Indenture”). All capitalized terms used but not otherwise defined
herein shall have the meanings ascribed to such terms in the Indenture.

W I T N E S S E T H:

     WHEREAS, ASII has deemed it advisable and in its best interest to
voluntarily execute and deliver this Guaranty to the Trustee for the benefit of
the Holders of the Securities based on the terms, agreements and covenants set
forth in this Guaranty;

     NOW, THEREFORE, in consideration of the premises and mutual covenants
contained herein, the parties hereto agree as follows:

     Section 1. Guaranty. With respect to each Security of or within a series
heretofore issued and any Securities of a series to be hereafter issued by the
Issuer which upon issuance shall be guaranteed by ASII pursuant to a
supplemental indenture establishing that series in accordance with Section 3.01
of the Indenture, ASII hereby fully and unconditionally guarantees to each
Holder of any such Security authenticated and made available for delivery by
the Trustee and to each Holder of any coupon appertaining to any such Security,
and to the Trustee on behalf of each such Holder, the due and punctual payment
of the principal of (and premium, if any, on) and interest (including, in case
of default, interest on principal and, to the extent permitted by applicable
law, on overdue interest and including any additional interest required to be
paid according to the terms of any such Security or any coupon appertaining
thereto), if any, on each such Security, and the due and punctual payment of
any sinking fund payment (or analogous obligation), if any, provided for with
respect to any such Security, when and as the same shall become due and
payable, whether at Stated Maturity, upon redemption, upon acceleration, upon
tender for repayment at the option of any Holder or otherwise, according to the
terms thereof and of the Indenture, including, without limitation, the payment
of any Additional Amounts, if any, provided for with respect to any such
Security as described under Section 10.10 of the Indenture and all other
amounts owed by the Issuer and the Guarantor under the Indenture (the “ASII
Guaranteed Debt”).

     Section 2. Payment. In case of the failure of the Issuer or any successor
thereto punctually to pay any such principal, premium, interest or sinking fund
payment, ASII

 

hereby agrees to cause any such payment to be made punctually when and as
the same shall become due and payable, whether at Stated Maturity, upon
redemption, upon declaration of acceleration, upon tender for repayment at the
option of any Holder or otherwise, as if such payment were made by the Issuer.
ASII hereby agrees that its ASII Guaranteed Debt hereunder shall be as if it
were principal debtor and not merely surety and shall be absolute and
unconditional, irrespective of the identity of the Issuer, the validity,
regularity or enforceability of any such Security or any coupon appertaining
thereto or this Indenture, the absence of any action to enforce the same, any
waiver or consent by the Holder of any such Security or any coupon appertaining
thereto with respect to any provisions thereof, the recovery of any judgment
against the Issuer or any action to enforce the same, or any other circumstance
which might otherwise constitute a legal or equitable discharge or defense of a
guarantor.

     Section 3. Waiver of Notice. ASII hereby waives diligence, presentment,
demand of payment, filing of claims with a court in the event of insolvency or
bankruptcy of the Issuer, any right to require a proceeding first against the
Issuer, protest, notice and all demands whatsoever and covenants that its
obligations under this Guaranty will not be discharged except by complete
performance of its obligations contained in any such Security or any coupon
appertaining thereto and in this Guaranty.

     Section 4. Reinstatement. If the Trustee or the Holder of any Security or
any coupon appertaining thereto is required by any court or otherwise to return
to the Issuer or ASII, or any custodian, receiver, liquidator, assignee,
trustee, sequestrator or other similar official acting in relation to the
Issuer or ASII, any amount paid to the Trustee or such Holder in respect of a
Security or any coupons appertaining thereto, this Guaranty, to the extent
theretofore discharged, shall be reinstated in full force and effect. ASII
further agrees, to the fullest extent that it may lawfully do so, that, as
between the Parent, on the one hand, and the Holders and the Trustee, on the
other hand, the maturity of the obligations guaranteed hereby may be
accelerated as provided in Article V of the Indenture for the purposes of this
Guaranty, notwithstanding any stay, injunction or other prohibition extent
under any applicable bankruptcy law preventing such acceleration in respect of
the obligations guaranteed hereby.

     Section 5. Subrogation. ASII shall be subrogated to all rights of the
Holders of the Securities of a series (and of any coupons appertaining thereto)
against the Issuer in respect of any amounts paid by ASII on account of such
Securities or any coupon appertaining thereto or this Indenture; provided,
however, that ASII shall not be entitled to enforce or to receive any payments
arising out of, or based upon, such right of subrogation until the principal of
(and premium, if any, on) and interest, if any, on all Securities of such
series shall have been indefeasibly paid in full.

     Section 6. Execution and Delivery of Guarantees. To evidence its
guarantees under this Guaranty with respect to Securities of or within any
series issued by the Issuer after the date hereof that are specified, as
contemplated by Section 3.01 of the Indenture, to be guaranteed by ASII, ASII
hereby agrees to execute a confirmation of guaranty (each a, “Confirmation of
Guaranty”), in the form of Appendix I attached hereto or such other form as
shall be established in one or more indentures supplemented hereto or approved

- 6 -

 

from time to time by or pursuant to a Board Resolution, to be endorsed on
each Security of such series authenticated and made available for delivery by
the Trustee. Each such Confirmation of Guaranty shall be executed on behalf of
ASII by its Chairman of the Board, or its Vice Chairman of the Board, or its
President, or one of its Executive Vice Presidents or Vice Presidents, or by
its Treasurer or one of its Assistant Treasurers and attested by its Secretary
or one of its Assistant Secretaries. The signature of any of these officers on
each Confirmation of Guaranty may be manual or facsimile. Each Confirmation of
Guaranty bearing the manual or facsimile signatures of the individuals who were
the proper officers of ASII shall bind ASII, notwithstanding that such
individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of the Securities upon which such Confirmation of
Guaranty is endorsed or did not hold such offices at the date of such
Securities.

     The delivery of any Securities by the Trustee, after the date hereof and
after the authentication thereof under the Indenture, shall constitute due
delivery of each Confirmation of Guaranty endorsed thereon on behalf of ASII.
ASII hereby agrees that its guarantees set forth in this Guaranty shall remain
in full force and effect notwithstanding any failure to endorse on each
security a notation of such Confirmation of Guaranty.

     No Confirmation of Guaranty on Securities of a series heretofore issued
shall be required to evidence ASII’s guaranty thereof pursuant to this
Guaranty.

     Section 7. Limitation of ASII’s Liability. ASII, and by its acceptance of
a Security each Holder, hereby confirms that it is the intention of all such
parties that in no event shall any ASII Guaranteed Debt under this Guarantee
Agreement constitute or result in a fraudulent transfer or conveyance for
purposes of, or resulting a violation of, any United States, federal, or
applicable United States state, fraudulent transfer or conveyance or similar
law. To effectuate the foregoing intention, in the event that the ASII
Guaranteed Debt, if any, in respect of the Securities of any series would, but
for this sentence, constitute or result in such a fraudulent transfer or
conveyance or violation, then the liability of ASII under this Guarantee
Agreement in respect of the Securities of such series shall be reduced to the
extent necessary to eliminate such fraudulent transfer or conveyance or
violation under the applicable fraudulent transfer or conveyance or similar law

     Observation of Indenture Covenants. ASII hereby agrees to observe, comply
with and be bound by each and every covenant and other obligation in the
Indenture to which American Standard Companies Inc. as “Guarantor” has agreed
in the Indenture to observe, comply with or be bound by, to the same extent as
if the definition of “Guarantor” in the Indenture included ASII.

     Section 9. Representations and Warranties. ASII warrants and represents
to the Trustee that it is duly authorized to execute and deliver this Guaranty
and to perform its obligations under this Guaranty, that this Guaranty has
been duly executed and delivered on behalf of ASII by its duly authorized
representatives; that this Guaranty is legal, valid, binding and enforceable
against ASII in accordance with its terms except as

- 7 -

 

enforceability may be limited by bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally and by general equitable principles;
and that ASII’s execution, delivery and performance of this Guaranty do not
violate or constitute a breach of any of its organizational documents, any
agreement or instrument to which ASII is a party, or any law, order,
regulation, decree or award of any governmental authority or arbitral body to
which it or its properties or operations is subject.

     Section 10. Entire Agreement. This Guaranty constitutes and expresses the
entire understanding between the parties hereto with respect to the subject
matter hereof, and supersedes all prior negotiations, agreements,
understandings, inducements, commitments or conditions, express or implied,
oral or written, except as herein contained. The express terms hereof control
and supersede any course of performance or usage of the trade inconsistent with
any of the terms hereof. Except as provided in Section 12, this Guaranty, any
portion or provision hereof may not be changed, altered, modified,
supplemented, discharged, canceled, terminated, or amended orally or in any
manner other than as provided in the Indenture.

     Section 11. Binding Agreement; Assignment. This Guaranty, the covenants
and conditions hereof and thereof, shall be binding upon and inure to the
benefit of the parties hereto and thereto, and to their respective heirs, legal
representatives, successors and assigns.

     Section 12. Governing Law. This Guaranty shall be governed by and
construed in accordance with the laws of the state of New York, as applied to
contracts made and performed within the state of New York.

     Section 13. Termination. Subject to reinstatement pursuant to Section 4
hereof, this Guaranty and ASII’s obligations with respect to the ASII
Guaranteed Debt hereunder shall terminate on the date as of which the Issuer
shall have made or is deemed to have made final payment in full of all
outstanding amounts under the Securities and the Indenture (including all
principal, interest, fees and expenses) and the Indenture shall have otherwise
been satisfied and discharged in accordance with Article IV thereof.

[Signature page follows.]

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     IN WITNESS WHEREOF, ASII has duly executed and delivered this Guaranty as
of the day and year first written above.

	 	 	 	 	 
	 	 	AMERICAN STANDARD INTERNATIONAL INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	
 	 
	

	 	 	Title: Vice President and Treasurer	 
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	
 	 
	

	 	 	Title: Assistant Treasurer	 

	 	 	 
	   Attest:
	 	 
	 
	 	 
	By:
	 	 
	

	
 	 
	Title:

	Assistant Secretary	 

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APPENDIX I

FORM OF NOTATION ON SECURITIES RELATING TO

AMERICAN STANDARD INTERNATIONAL INC.

     American Standard International Inc., a Delaware corporation (“ASII”) has
unconditionally guaranteed, to the extent set forth in the Guaranty dated as of
November 19, 2004 by ASII to the Trustee, and subject to the provisions in the
Indenture, the due and punctual payment and performance of the obligations of
the Issuer in connection with the Indenture and each Series of Securities
issued thereunder. In case of the failure of the Issuer punctually to perform
or make any such payment, ASII hereby agrees to cause such payment and
performance to be made punctually. The obligations of ASII to the Holders and
to the Trustee pursuant to the Guaranty and the Indenture are expressly set
forth in the Guaranty. Capitalized terms used and not defined herein have the
meanings ascribed thereto in the Indenture.

	 	 	 	 	 
	 	 	AMERICAN STANDARD INTERNATIONAL INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	
 	 
	

	 	Name:	 	 
	

	 	Title:	 	 

	 	 	 
	Attest:
	 	 
	 
	 	 
	By:
	 	 
	

	
 	 
	Name:
	 	 
	Title:
	 	 

(Seal)

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