Document:

Exhibit
4.1

 

 

 

CONCEPTUS, INC.

INDENTURE

Dated as of February 12, 2007

Wells Fargo Bank, National Association

Trustee

 

   
 

TABLE OF CONTENTS

 

	
  

  	
  Page

  
	
  ARTICLE I. DEFINITIONS AND INCORPORATION BY REFERENCE

  	
  2

  
	
  Section
  1.1.

  	
  Definition.

  	
  2

  
	
  Section 1.2.

  	
  Other Definitions.

  	
  6

  
	
  Section 1.3.

  	
  Incorporation
  by Reference of Trust Indenture Act.

  	
  6

  
	
  Section 1.4.

  	
  Rules of
  Construction.

  	
  7

  
	
  ARTICLE
  II. THE SECURITIES

  	
  7

  
	
  Section 2.1.

  	
  Issuable in Series.

  	
  7

  
	
  Section 2.2.

  	
  Establishment
  of Terms of Series of Securities.

  	
  7

  
	
  Section 2.3.

  	
  Execution and
  Authentication.

  	
  10

  
	
  Section 2.4.

  	
  Registrar and
  Paying Agent.

  	
  11

  
	
  Section 2.5.

  	
  Paying Agent to Hold Money in Trust.

  	
  11

  
	
  Section 2.6.

  	
  Securityholder
  Lists.

  	
  12

  
	
  Section 2.7.

  	
  Transfer and
  Exchange.

  	
  12

  
	
  Section 2.8.

  	
  Mutilated,
  Destroyed, Lost and Stolen Securities.

  	
  12

  
	
  Section 2.9.

  	
  Outstanding
  Securities.

  	
  13

  
	
  Section 2.10.

  	
  Treasury
  Securities.

  	
  14

  
	
  Section 2.11.

  	
  Temporary
  Securities.

  	
  14

  
	
  Section 2.12.

  	
  Cancellation.

  	
  14

  
	
  Section 2.13.

  	
  Defaulted Interest.

  	
  14

  
	
  Section 2.14.

  	
  Global Securities.

  	
  14

  
	
  Section 2.15.

  	
  CUSIP Numbers.

  	
  16

  
	
  ARTICLE
  III. REDEMPTION

  	
  16

  
	
  Section 3.1.

  	
  Notice to Trustee.

  	
  16

  
	
  Section 3.2.

  	
  Selection of
  Securities to be Redeemed.

  	
  16

  
	
  Section 3.3.

  	
  Notice of
  Redemption.

  	
  16

  
	
  Section 3.4.

  	
  Effect of
  Notice of Redemption.

  	
  17

  
	
  Section 3.5.

  	
  Deposit of
  Redemption Price.

  	
  17

  
	
  Section 3.6.

  	
  Securities
  Redeemed in Part.

  	
  17

  
	
  ARTICLE
  IV. COVENANTS

  	
  18

  
	
  Section 4.1.

  	
  Payment of
  Principal and Interest.

  	
  18

  
	
  Section 4.2.

  	
  SEC Reports.

  	
  18

  
	
  Section 4.3.

  	
  Compliance
  Certificate.

  	
  18

  
	
  Section 4.4.

  	
  Stay, Extension
  and Usury Laws.

  	
  18

  
	
  Section 4.5.

  	
  Corporate Existence.

  	
  19

  
	
  Section 4.6.

  	
  Taxes.

  	
  19

  
	
  ARTICLE
  V. SUCCESSORS

  	
  19

  
	
  Section 5.1.

  	
  When Company
  May Merge, Etc.

  	
  19

  
	
  Section 5.2.

  	
  Successor
  Corporation Substituted.

  	
  19

  
	
  ARTICLE VI. DEFAULTS AND REMEDIES

  	
  20

  
	
  Section 6.1.

  	
  Events of Default.

  	
  20

  
	
  Section 6.2.

  	
  Acceleration of
  Maturity; Rescission and Annulment.

  	
  21

  
	
  Section 6.3.

  	
  Collection of
  Indebtedness and Suits for Enforcement by Trustee.

  	
  22

  
	
  Section 6.4.

  	
  Trustee May
  File Proofs of Claim.

  	
  23

  

 

 

	
  Section 6.5.

  	
  Trustee May
  Enforce Claims Without Possession of Securities.

  	
  23

  
	
  Section 6.6.

  	
  Application of
  Money Collected.

  	
  24

  
	
  Section 6.7.

  	
  Limitation on Suits.

  	
  24

  
	
  Section 6.8.

  	
  Unconditional
  Right of Holders to Receive Principal and Interest.

  	
  25

  
	
  Section 6.9.

  	
  Restoration of
  Rights and Remedies.

  	
  25

  
	
  Section 6.10.

  	
  Rights and
  Remedies Cumulative.

  	
  25

  
	
  Section 6.11.

  	
  Delay or
  Omission Not Waiver.

  	
  25

  
	
  Section 6.12.

  	
  Control by Holders.

  	
  25

  
	
  Section 6.13.

  	
  Waiver of Past
  Defaults.

  	
  26

  
	
  Section 6.14.

  	
  Undertaking for
  Costs.

  	
  26

  
	
  ARTICLE
  VII. TRUSTEE

  	
  26

  
	
  Section 7.1.

  	
  Duties of Trustee.

  	
  26

  
	
  Section 7.2.

  	
  Rights of Trustee.

  	
  28

  
	
  Section 7.3.

  	
  Individual
  Rights of Trustee.

  	
  28

  
	
  Section 7.4.

  	
  Trustee’s
  Disclaimer.

  	
  29

  
	
  Section 7.5.

  	
  Notice of Defaults.

  	
  29

  
	
  Section 7.6.

  	
  Reports by
  Trustee to Holders.

  	
  29

  
	
  Section 7.7.

  	
  Compensation
  and Indemnity.

  	
  29

  
	
  Section 7.8.

  	
  Replacement of
  Trustee.

  	
  30

  
	
  Section 7.9.

  	
  Successor
  Trustee by Merger, Etc.

  	
  31

  
	
  Section 7.10.

  	
  Eligibility;
  Disqualification.

  	
  31

  
	
  Section 7.11.

  	
  Preferential
  Collection of Claims Against Company.

  	
  31

  
	
  ARTICLE VIII. SATISFACTION AND DISCHARGE; DEFEASANCE

  	
  31

  
	
  Section 8.1.

  	
  Satisfaction
  and Discharge of Indenture.

  	
  31

  
	
  Section 8.2.

  	
  Application of
  Trust Funds; Indemnification.

  	
  32

  
	
  Section 8.3.

  	
  Legal
  Defeasance of Securities of any Series.

  	
  33

  
	
  Section 8.4.

  	
  Covenant Defeasance.

  	
  35

  
	
  Section 8.5.

  	
  Repayment to
  Company.

  	
  36

  
	
  Section 8.6.

  	
  Reinstatement.

  	
  36

  
	
  ARTICLE IX. AMENDMENTS AND WAIVERS

  	
  36

  
	
  Section 9.1.

  	
  Without Consent
  of Holders.

  	
  36

  
	
  Section 9.2.

  	
  With Consent of
  Holders.

  	
  37

  
	
  Section 9.3.

  	
  Limitations.

  	
  38

  
	
  Section 9.4.

  	
  Compliance with
  Trust Indenture Act.

  	
  38

  
	
  Section 9.5.

  	
  Revocation and
  Effect of Consents.

  	
  38

  
	
  Section 9.6.

  	
  Notation on or
  Exchange of Securities.

  	
  39

  
	
  Section 9.7.

  	
  Trustee Protected.

  	
  39

  
	
  ARTICLE
  X. MISCELLANEOUS

  	
  39

  
	
  Section 10.1.

  	
  Trust Indenture
  Act Controls.

  	
  39

  
	
  Section 10.2.

  	
  Notices.

  	
  39

  
	
  Section 10.3.

  	
  Communication
  by Holders with Other Holders.

  	
  40

  
	
  Section 10.4.

  	
  Certificate and
  Opinion as to Conditions Precedent.

  	
  40

  
	
  Section 10.5.

  	
  Statements
  Required in Certificate or Opinion.

  	
  40

  
	
  Section 10.6.

  	
  Rules by
  Trustee and Agents.

  	
  41

  
	
  Section 10.7.

  	
  Legal Holidays.

  	
  41

  
	
  Section 10.8.

  	
  No Recourse
  Against Others.

  	
  41

  

 

 

	
  Section 10.9.

  	
  Counterparts.

  	
  41

  
	
  Section 10.10.

  	
  Governing Laws.

  	
  41

  
	
  Section 10.11.

  	
  No Adverse
  Interpretation of Other Agreements.

  	
  41

  
	
  Section 10.12.

  	
  Successors.

  	
  42

  
	
  Section 10.13.

  	
  Severability.

  	
  42

  
	
  Section 10.14.

  	
  Table of
  Contents, Headings, Etc.

  	
  42

  
	
  Section 10.15.

  	
  Securities in a
  Foreign Currency or in ECU.

  	
  42

  
	
  Section 10.16.

  	
  Judgment Currency.

  	
  43

  
	
  ARTICLE
  XI. SINKING FUNDS

  	
  43

  
	
  Section 11.1.

  	
  Applicability
  of Article.

  	
  43

  
	
  Section 11.2.

  	
  Satisfaction of
  Sinking Fund Payments with Securities.

  	
  44

  
	
  Section 11.3.

  	
  Redemption of
  Securities for Sinking Fund.

  	
  44

  

 

 

CONCEPTUS, INC.

Reconciliationand tie between Trust Indenture Act of 1939 and

Indenture, dated as of February    , 2007

	
  Section 310(a)(1)

  	
   

  	
   

  	
   

  	
  7.10

  
	
  (a)(2)

  	
   

  	
   

  	
   

  	
  7.10

  
	
  (a)(3)

  	
   

  	
   

  	
   

  	
  Not Applicable

  
	
  (a)(4)

  	
   

  	
   

  	
   

  	
  Not Applicable

  
	
  (a)(5)

  	
   

  	
   

  	
   

  	
  7.10

  
	
  (b)

  	
   

  	
   

  	
   

  	
  7.10

  
	
  Section 311(a)

  	
   

  	
   

  	
   

  	
  7.11

  
	
  (b)

  	
   

  	
   

  	
   

  	
  7.11

  
	
  (c)

  	
   

  	
   

  	
   

  	
  Not Applicable

  
	
  Section 312(a)

  	
   

  	
   

  	
   

  	
  2.6

  
	
  (b)

  	
   

  	
   

  	
   

  	
  10.3

  
	
  (c)

  	
   

  	
   

  	
   

  	
  10.3

  
	
  Section 313(a)

  	
   

  	
   

  	
   

  	
  7.6

  
	
  (b)(1)

  	
   

  	
   

  	
   

  	
  7.6

  
	
  (b)(2)

  	
   

  	
   

  	
   

  	
  7.6

  
	
  (c)(1)

  	
   

  	
   

  	
   

  	
  7.6

  
	
  (d)

  	
   

  	
   

  	
   

  	
  7.6

  
	
  Section 314(a)

  	
   

  	
   

  	
   

  	
  4.2, 10.5

  
	
  (b)

  	
   

  	
   

  	
   

  	
  Not Applicable

  
	
  (c)(1)

  	
   

  	
   

  	
   

  	
  10.4

  
	
  (c)(2)

  	
   

  	
   

  	
   

  	
  10.4

  
	
  (c)(3)

  	
   

  	
   

  	
   

  	
  Not Applicable

  
	
  (d)

  	
   

  	
   

  	
   

  	
  Not Applicable

  
	
  (e)

  	
   

  	
   

  	
   

  	
  10.5

  
	
  (f)

  	
   

  	
   

  	
   

  	
  Not Applicable

  
	
  Section 315(a)

  	
   

  	
   

  	
   

  	
  7.1

  
	
  (b)

  	
   

  	
   

  	
   

  	
  7.5

  
	
  (c)

  	
   

  	
   

  	
   

  	
  7.1

  
	
  (d)

  	
   

  	
   

  	
   

  	
  7.1

  
	
  (e)

  	
   

  	
   

  	
   

  	
  6.14

  
	
  Section 316(a)

  	
   

  	
   

  	
   

  	
  2.10

  
	
  (a)(1)(A)

  	
   

  	
   

  	
   

  	
  6.12

  
	
  (a)(1)(B)

  	
   

  	
   

  	
   

  	
  6.13

  
	
  (b)

  	
   

  	
   

  	
   

  	
  6.8

  
	
  Section 317(a)(1)

  	
   

  	
   

  	
   

  	
  6.3

  
	
  (a)(2)

  	
   

  	
   

  	
   

  	
  6.4

  
	
  (b)

  	
   

  	
   

  	
   

  	
  2.5

  
	
  Section 318(a)

  	
   

  	
   

  	
   

  	
  10.1

  

                Note:        This reconciliation and tie shall not, for any purpose, be
deemed to be part of the Indenture.

 

Indenture dated as of February    , 2007 between
Conceptus, Inc., a Delaware corporation (“Company”), and Wells Fargo Bank,
National Association, a national banking association organized and existing
under the laws of the United States (“Trustee”).

Each party agrees as follows for the benefit of the other party and for
the equal and ratable benefit of the Holders of the Securities issued under
this Indenture.

ARTICLE
I.

DEFINITIONS AND INCORPORATION BY REFERENCE

Section 1.1.            Definitions.

“Additional Amounts” means any additional amounts that are required
hereby or by any Security, under circumstances specified herein or therein, to
be paid by the Company in respect of certain taxes imposed on Holders specified
therein and that are owing to such Holders.

“Affiliate” of any specified person means any other person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified person.  For
the purposes of this definition, “control” (including, with correlative meanings,
the terms “controlled by” and “under common control with”), as used with
respect to any person, shall mean the possession, directly or indirectly, of
the power to direct or cause the direction of the management or policies of
such person, whether through the ownership of voting securities or by agreement
or otherwise.

“Agent” means any Registrar, Paying Agent, Service Agent or
authenticating agent.

“Authorized Newspaper” means a newspaper in an official language of the
country of publication customarily published at least once a day for at least
five days in each calendar week and of general circulation in the place in
connection with which the term is used. 
If it shall be impractical to make any publication of any notice
required hereby in an Authorized Newspaper, any publication or other notice in
lieu thereof that is made or given by the Trustee shall constitute a sufficient
publication of such notice.

“Bearer” means anyone in possession from time to time of a Bearer
Security.

“Bearer Security” means any Security, including any interest coupon
appertaining thereto, that does not provide for the identification of the
Holder thereof.

“Board of Directors” means the Board of Directors of the Company or any
duly authorized committee thereof.

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

 2
 

 

“Business Day” means, unless otherwise provided by Board Resolution,
Officers’ Certificate or supplemental indenture hereto for a particular Series,
any day except a Saturday, Sunday or a legal holiday in The City of New York,
New York or The City of San Francisco, California on which banking institutions
are authorized or required by law, regulation or executive order to close.

“Company” means the party named as such above until a successor
replaces it and thereafter means the successor.

“Company Order” means a written order signed in the name of the Company
by two Officers, one of whom must be the Company’s chief executive officer,
chief financial officer or principal accounting officer.

“Company Request” means a written request signed in the name of the
Company by its Chairman of the Board, a President or a Vice President, and by
its Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary,
and delivered to the Trustee.

“Corporate Trust Office” means the office of the Trustee at which at
any particular time its corporate trust business shall be principally
administered.

“Debt” of any person as of any date means, without duplication, all
indebtedness of such person in respect of borrowed money, including all
interest, fees and expenses owed in respect thereto (whether or not the
recourse of the lender is to the whole of the assets of such person or only to
a portion thereof), or evidenced by bonds, notes, debentures or similar
instruments.

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

“Depository” means, with respect to the Securities of any Series
issuable or issued in whole or in part in the form of one or more Global
Securities, the person designated as Depository for such Series by the Company,
which Depository shall be a clearing agency registered under the Exchange Act;
and if at any time there is more than one such person, “Depository” as used
with respect to the Securities of any Series shall mean the Depository with
respect to the Securities of such Series.

“Discount Security” means any Security that provides for an amount less
than the stated principal amount thereof to be due and payable upon declaration
of acceleration of the maturity thereof pursuant to Section 6.2.

“Dollars” means the currency of The United States of America.

“ECU” means the European Currency Unit as determined by the Commission
of the European Union.

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

 3
 

 

“Foreign Currency” means any currency or currency unit issued by a
government other than the government of The United States of America.

“Foreign Government Obligations” means with respect to Securities of
any Series that are denominated in a Foreign Currency, (i) direct obligations
of the government that issued or caused to be issued such currency for the
payment of which obligations its full faith and credit is pledged or (ii)
obligations of a person controlled or supervised by or acting as an agency or
instrumentality of such government the timely payment of which is
unconditionally guaranteed as a full faith and credit obligation by such
government, which, in either case under clauses (i) or (ii), are not callable
or redeemable at the option of the issuer thereof.

“Global Security” or “Global Securities” means a Security or
Securities, as the case may be, in the form established pursuant to Section 2.2
evidencing all or part of a Series of Securities, issued to the Depository for
such Series or its nominee, and registered in the name of such Depository or
nominee.

“Holder” or “Securityholder” means a person in whose name a Security is
registered or the holder of a Bearer Security.

“Indenture” means this Indenture as amended from time to time and shall
include the form and terms of particular Series of Securities established as
contemplated hereunder.

“interest” with respect to any Discount Security which by its terms
bears interest only after Maturity, means interest payable after Maturity.

“Maturity,” when used with respect to any Security or installment of
principal thereof, means the date on which the principal of such Security or
such installment of principal becomes due and payable as therein or herein
provided, whether at the Stated Maturity or by declaration of acceleration,
call for redemption, notice of option to elect repayment or otherwise.

“Officer” means the Chairman of the Board, any President, any
Vice-President, the Treasurer, the Secretary, any Assistant Treasurer or any
Assistant Secretary of the Company.

“Officers’ Certificate” means a certificate signed by two Officers, one
of whom must be the Company’s principal executive officer, principal financial
officer or principal accounting officer.

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

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

“principal” of a Security means the principal of the Security plus,
when appropriate, the premium, if any, on, and any Additional Amounts in
respect of, the Security.

 4
 

 

“Responsible Officer” means any officer of the Trustee with direct
responsibility for the administration of the indenture and also means, with
respect to a particular corporate trust matter, any other officer to whom any
corporate trust matter is referred because of his or her knowledge of and
familiarity with a particular subject.

“SEC” means the Securities and Exchange Commission.

“Securities” means the debentures, notes or other debt instruments of
the Company of any Series authenticated and delivered under this Indenture.

“Series” or “Series of Securities” means each series of debentures,
notes or other debt instruments of the Company created pursuant to Sections 2.1
and 2.2 hereof.

“Significant Subsidiary” means (i) any direct or indirect Subsidiary of
the Company that would be a “significant subsidiary” as defined in Article 1,
Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act of
1933, as amended, as such regulation is in effect on the date hereof, or (ii)
any group of direct or indirect Subsidiaries of the Company that, taken
together as a group, would be a “significant subsidiary” as defined in Article
1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act of
1933, as amended, as such regulation is in effect on the date hereof.

“Stated Maturity” when used with respect to any Security or any
installment of principal thereof or interest thereon, means the date specified
in such Security as the fixed date on which the principal of such Security or
such installment of principal or interest is due and payable.

“Subsidiary” of any specified person means any corporation of which at
least a majority of the outstanding stock having by the terms thereof ordinary
voting power for the election of directors of such corporation (irrespective of
whether or not at the time stock of any other class or classes of such
corporation shall have or might have voting power by reason of the happening of
any contingency) is at the time directly or indirectly owned by such person, or
by one or more other Subsidiaries, or by such person and one or more other
Subsidiaries.

“TIA” means the Trust Indenture Act of 1939 (15 U.S. Code Sections
77aaa-77bbbb) as in effect on the date of this Indenture; provided, however,
that in the event the Trust Indenture Act of 1939 is amended after such date, “TIA”
means, to the extent required by any such amendment, the Trust Indenture Act as
so amended.

“Trustee” means the person named as the “Trustee” in the first
paragraph of this instrument until a successor Trustee shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter “Trustee”
shall mean or include each person who is then a Trustee hereunder, and if at
any time there is more than one such person, “Trustee” as used with respect to
the Securities of any Series shall mean the Trustee with respect to Securities
of that Series.

“U.S. Government Obligations” means securities that are (i) direct
obligations of The United States of America for the payment of which its full
faith and credit is pledged or (ii) obligations of a person controlled or
supervised by and acting as an agency or instrumentality of 

 5
 

The United States of America the payment of which is unconditionally
guaranteed as a full faith and credit obligation by The United States of
America, and which in the case of (i) and (ii) are not callable or redeemable
at the option of the issuer thereof, and shall also include a depository
receipt issued by a bank or trust company as custodian with respect to any such
U.S. Government Obligation or a specific payment of interest on or principal of
any such U.S. Government Obligation held by such custodian for the account of
the holder of a depository receipt, provided that
(except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such depository receipt from
any amount received by the custodian in respect of the U.S. Government
Obligation evidenced by such depository receipt.

Section 1.2.            Other
Definitions.

	
  TERM

  	
   

  	
  DEFINED IN 

  SECTION

  
	
   

  	
   

  
	
  “Bankruptcy Law”

  	
  6.1

  
	
  “Custodian”

  	
  6.1

  
	
  “Event of
  Default”

  	
  6.1

  
	
  “Journal”

  	
  10.15

  
	
  “Judgment
  Currency”

  	
  10.16

  
	
  “Legal Holiday”

  	
  10.7

  
	
  “mandatory
  sinking fund payment”

  	
  11.1

  
	
  “Market Exchange
  Rate”

  	
  10.15

  
	
  “New York
  Banking Day”

  	
  10.16

  
	
  “optional
  sinking fund payment”

  	
  11.1

  
	
  “Paying Agent”

  	
  2.4

  
	
  “Registrar”

  	
  2.4

  
	
  “Required
  Currency”

  	
  10.16

  
	
  “Service Agent”

  	
  2.4

  
	
  “successor
  person”

  	
  5.1

  
				

 

Section 1.3.            Incorporation
by Reference of Trust Indenture Act.

Whenever this Indenture refers to a provision of the TIA, the provision
is incorporated by reference in and made a part of this Indenture.  The following TIA terms used in this
Indenture have the following meanings:

“Commission” means the SEC.

“indenture securities” means
the Securities.

“indenture security holder”
means a Securityholder.

“indenture to be qualified”
means this Indenture.

“indenture trustee” or “institutional
trustee” means the Trustee.

“obligor”
on the indenture securities means the Company and any successor obligor upon
the Securities.

 6
 

 

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

Section 1.4.            Rules
of Construction.

Unless the context otherwise requires:

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

(b)           an accounting term not otherwise
defined has the meaning assigned to it in accordance with generally accepted
accounting principles;

(c)           references to “generally accepted
accounting principles” shall mean generally accepted accounting principles in
effect as of the time when and for the period as to which such accounting
principles are to be applied;

(d)           “or” is not exclusive;

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

(f)            provisions apply to successive
events and transactions.

ARTICLE
II.

THE SECURITIES

Section 2.1.            Issuable
in Series.

The aggregate principal amount of Securities that may be authenticated
and delivered under this Indenture is unlimited.  The Securities may be issued in one or more
Series. All Securities of a Series shall be identical except as may be set
forth in a Board Resolution, a supplemental indenture or an Officers’ Certificate
detailing the adoption of the terms thereof pursuant to the authority granted
under a Board Resolution. In the case of Securities of a Series to be issued
from time to time, the Board Resolution, Officers’ Certificate or supplemental
indenture may provide for the method by which specified terms (such as interest
rate, maturity date, record date or date from which interest shall accrue) are
to be determined.  Securities may differ
between Series in respect of any matters, provided that all Series of Securities
shall be equally and ratably entitled to the benefits of the Indenture.

Section 2.2.            Establishment
of Terms of Series of Securities.

At or prior to the issuance of any Securities within a Series, the
following shall be established (as to the Series generally, in the case of
Subsection 2.2.1 and either as to such Securities within the Series or as to
the Series generally in the case of Subsections 2.2.2 through 2.2.22) by a
Board Resolution, a supplemental indenture or an Officers’ Certificate pursuant
to authority granted under a Board Resolution:

 7
 

2.2.1.               the
title of the Series (which shall distinguish the Securities of that particular
Series from the Securities of any other Series);

2.2.2.               the
price or prices (expressed as a percentage of the principal amount thereof) at
which the Securities of the Series will be issued;

2.2.3.               any
limit upon the aggregate principal amount of the Securities of the Series which
may be authenticated and delivered under this Indenture (except for Securities
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Securities of the Series pursuant to Section 2.7,
2.8, 2.11, 3.6 or 9.6);

2.2.4.               the
date or dates on which the principal of the Securities of the Series is
payable;

2.2.5.               the
rate or rates (which may be fixed or variable) per annum or, if applicable, the
method used to determine such rate or rates (including, but not limited to, any
commodity, commodity index, stock exchange index or financial index) at which
the Securities of the Series shall bear interest, if any, the date or dates
from which such interest, if any, shall accrue, the date or dates on which such
interest, if any, shall commence and be payable and any regular record date for
the interest payable on any interest payment date;

2.2.6.               the
place or places where the principal of and interest, if any, on the Securities
of the Series shall be payable, or the method of such payment, if by wire
transfer, mail or other means;

2.2.7.               if
applicable, the period or periods within which, the price or prices at which
and the terms and conditions upon which the Securities of the Series may be
redeemed, in whole or in part, at the option of the Company;

2.2.8.               the
obligation, if any, of the Company to redeem or purchase the Securities of the
Series pursuant to any sinking fund or analogous provisions or at the option of
a Holder thereof and the period or periods within which, the price or prices at
which and the terms and conditions upon which Securities of the Series shall be
redeemed or purchased, in whole or in part, pursuant to such obligation;

2.2.9.               the
dates, if any, on which and the price or prices at which the Securities of the
Series will be repurchased by the Company at the option of the Holders thereof
and other detailed terms and provisions of such repurchase obligations;

2.2.10.             if
other than denominations of $2,000 and any integral multiple thereof, the
denominations in which the Securities of the Series shall be issuable;

2.2.11.             the
forms of the Securities of the Series in bearer or fully registered form (and,
if in fully registered form, whether the Securities will be issuable as Global
Securities);

 8
 

 

2.2.12.             if
other than the principal amount thereof, the portion of the principal amount of
the Securities of the Series that shall be payable upon declaration of
acceleration of the maturity thereof pursuant to Section 6.2;

2.2.13.             the
currency of denomination of the Securities of the Series, which may be Dollars
or any Foreign Currency, including, but not limited to, the ECU, and if such
currency of denomination is a composite currency other than the ECU, the agency
or organization, if any, responsible for overseeing such composite currency;

2.2.14.             the
designation of the currency, currencies or currency units in which payment of
the principal of and interest, if any, on the Securities of the Series will be
made;

2.2.15.             if
payments of principal of or interest, if any, on the Securities of the Series
are to be made in one or more currencies or currency units other than that or
those in which such Securities are denominated, the manner in which the
exchange rate with respect to such payments will be determined;

2.2.16.             the
manner in which the amounts of payment of principal of or interest, if any, on
the Securities of the Series will be determined, if such amounts may be
determined by reference to an index based on a currency or currencies or by
reference to a commodity, commodity index, stock exchange index or financial
index;

2.2.17.             the
provisions, if any, relating to any security provided for the Securities of the
Series;

2.2.18.             if
the holders of Securities of the Series may convert or exchange the Securities
into or for securities of the Issuer or of other entities or other property,
the period or periods within which, the rate or rates at which and the terms
and conditions upon which Securities of the Series may be converted or
exchanged, in whole or in part;

2.2.19.             any
addition to or change in the Events of Default which applies to any Securities
of the Series and any change in the right of the Trustee or the requisite
Holders of such Securities to declare the principal amount thereof due and
payable pursuant to Section 6.2;

2.2.20.             any
addition to or change in the covenants set forth in Articles IV or V which
applies to Securities of the Series;

2.2.21.             any
other terms of the Securities of the Series (which terms shall not be
inconsistent with the provisions of this Indenture, except as permitted by
Section 9.1, but which may modify or delete any provision of this Indenture
insofar as it applies to such Series); and

2.2.22.             any
depositories, interest rate calculation agents, exchange rate calculation
agents or other agents with respect to Securities of such Series if other than
those appointed herein.

All Securities of any one Series need not be issued at the same time
and may be issued from time to time, consistent with the terms of this
Indenture, if so provided by or 

 9
 

pursuant to the Board Resolution, supplemental indenture or Officers’
Certificate referred to above, and the authorized principal amount of any
Series may not be increased to provide for issuances of additional Securities
of such Series, unless otherwise provided in such Board Resolution,
supplemental indenture or Officers’ Certificate.

 

Section 2.3.            Execution
and Authentication.

Two Officers shall sign the Securities for the Company by manual or
facsimile signature.

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

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

The Trustee shall at any time, and from time to time, authenticate
Securities for original issue in the principal amount provided in the Board
Resolution, supplemental indenture hereto or Officers’ Certificate, upon
receipt by the Trustee of a Company Order. 
Such Company Order may authorize authentication and delivery pursuant to
oral or electronic instructions from the Company or its duly authorized agent
or agents, which oral instructions shall be promptly confirmed in writing.  Each Security shall be dated the date of its
authentication unless otherwise provided by a Board Resolution, a supplemental
indenture hereto or an Officers’ Certificate.

The aggregate principal amount of Securities of any Series outstanding
at any time may not exceed any limit upon the maximum principal amount for such
Series set forth in the Board Resolution, supplemental indenture hereto or
Officers’ Certificate delivered pursuant to Section 2.2, except as provided in
Section 2.8.

Prior to the issuance of Securities of any Series, the Trustee shall
have received and (subject to Section 7.2) shall be fully protected in relying
on:  (a) the Board Resolution,
supplemental indenture hereto or Officers’ Certificate establishing the form of
the Securities of that Series or of Securities within that Series and the terms
of the Securities of that Series or of Securities within that Series, (b) an
Officers’ Certificate complying with Section 10.4, and (c) an Opinion of
Counsel complying with Section 10.4.

The Trustee shall have the right to decline to authenticate and deliver
any Securities of such Series: (a) if the Trustee, being advised by counsel,
determines that such action may not lawfully be taken; or (b) if the Trustee in
good faith by its board of directors or trustees, executive committee or a
trust committee of directors and/or vice-presidents shall determine that such
action would expose the Trustee to personal liability to Holders of any then
outstanding Series of Securities.

The Trustee may appoint an authenticating agent acceptable to the
Company to authenticate Securities.  An
authenticating agent may authenticate Securities whenever the Trustee may do
so.  Each reference in this Indenture to
authentication by the Trustee includes 

 10
 

authentication by such agent.  An
authenticating agent has the same rights as an Agent to deal with the Company
or an Affiliate.

 

Section 2.4.            Registrar
and Paying Agent.

The Company shall maintain, with respect to each Series of Securities,
at the place or places specified with respect to such Series pursuant to
Section 2.2, an office or agency where Securities of such Series may be
presented or surrendered for payment (“Paying Agent”), where Securities of such
Series may be surrendered for registration of transfer or exchange (“Registrar”)
and where notices and demands to or upon the Company in respect of the
Securities of such Series and this Indenture may be served (“Service Agent”).  The Registrar shall keep a register with
respect to each Series of Securities and to their transfer and exchange.  The Company will give prompt written notice
to the Trustee of the name and address, and any change in the name or address,
of each Registrar, Paying Agent or Service Agent.  If at any time the Company shall fail to maintain
any such required Registrar, Paying Agent or Service Agent or shall fail to
furnish the Trustee with the name and address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust
Office of the Trustee, and the Company hereby appoints the Trustee as its agent
to receive all such presentations, surrenders, notices and demands.

The Company may also from time to time designate one or more
co-registrars, additional paying agents or additional service agents and may
from time to time rescind such designations; provided, however,
that no such designation or rescission shall in any manner relieve the Company
of its obligations to maintain a Registrar, Paying Agent and Service Agent in
each place so specified pursuant to Section 2.2 for Securities of any Series
for such purposes.  The Company will give
prompt written notice to the Trustee of any such designation or rescission and
of any change in the name or address of any such co-registrar, additional
paying agent or additional service agent. 
The term “Registrar” includes any co-registrar; the term “Paying Agent”
includes any additional paying agent; and the term “Service Agent” includes any
additional service agent.

The Company hereby appoints the Trustee the initial Registrar, Paying
Agent and Service Agent for each Series unless another Registrar, Paying Agent
or Service Agent, as the case may be, is appointed prior to the time Securities
of that Series are first issued.

Section 2.5.            Paying
Agent to Hold Money in Trust.

The Company shall require each Paying Agent other than the Trustee to
agree in writing that the Paying Agent will hold in trust, for the benefit of
Securityholders of any Series of Securities, or the Trustee, all money held by
the Paying Agent for the payment of principal of or interest on the Series of
Securities, and will notify the Trustee of any default by the Company in making
any such payment.  While any such default
continues, the Trustee may require a Paying Agent to pay all money held by it
to the Trustee.  The Company at any time
may require a Paying Agent to pay all money held by it to the Trustee.  Upon payment over to the Trustee, the Paying
Agent (if other than the Company or a Subsidiary) shall have no further
liability for the money.  If the Company
or a Subsidiary acts as Paying Agent, it shall segregate and hold in a

 

 11

separate trust fund for the benefit of Securityholders of any Series of
Securities all money held by it as Paying Agent.

 

Section 2.6.            Securityholder
Lists.

The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
Securityholders of each Series of Securities and shall otherwise comply with
TIA  Section 312(a).  If the Trustee is not the Registrar, the
Company shall furnish to the Trustee at least ten days before each interest
payment date and at such other times as the Trustee may request in writing a
list, in such form and as of such date as the Trustee may reasonably require,
of the names and addresses of Securityholders of each Series of Securities.

Section 2.7.            Transfer
and Exchange.

Where Securities of a Series are presented to the Registrar or a
co-registrar with a request to register a transfer or to exchange them for an
equal principal amount of Securities of the same Series, the Registrar shall
register the transfer or make the exchange if its requirements for such
transactions are met.  To permit
registrations of transfers and exchanges, the Trustee shall authenticate
Securities at the Registrar’s request. 
No service charge shall be made for any registration of transfer or
exchange (except as otherwise expressly permitted herein), but the Company may
require payment of a sum sufficient to cover any transfer tax or similar
governmental charge payable in connection therewith (other than any such
transfer tax or similar governmental charge payable upon exchanges pursuant to
Sections 2.11, 3.6 or 9.6).

Neither the Company nor the Registrar shall be required (a) to issue,
register the transfer of, or exchange Securities of any Series for the period
beginning at the opening of business fifteen days immediately preceding the
mailing of a notice of redemption of Securities of that Series selected for
redemption and ending at the close of business on the day of such mailing, or
(b) to register the transfer of or exchange Securities of any Series selected,
called or being called for redemption as a whole or the portion being redeemed
of any such Securities selected, called or being called for redemption in part.

Section 2.8.            Mutilated,
Destroyed, Lost and Stolen Securities.

If any mutilated Security is surrendered to the Trustee, the Company
shall execute and the Trustee shall authenticate and deliver in exchange
therefor a new Security of the same Series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding.

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

 12
 

 

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

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

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

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

Section 2.9.            Outstanding
Securities.

The Securities outstanding at any time are all the
Securities authenticated by the Trustee except for those canceled by it, those
delivered to it for cancellation, those reductions in the interest on a Global
Security effected by the Trustee in accordance with the provisions hereof and
those described in this Section as not outstanding.

If a Security is replaced pursuant to Section 2.8, it ceases to be
outstanding until the Trustee receives proof satisfactory to it that the
replaced Security is held by a bona fide purchaser.

If the Paying Agent (other than the Company, a Subsidiary or an
Affiliate of any thereof) holds on the Maturity of Securities of a Series money
sufficient to pay such Securities payable on that date, then on and after that
date such Securities of the Series cease to be outstanding and interest on them
ceases to accrue.

A Security does not cease to be outstanding because the Company or an
Affiliate holds the Security.

In determining whether the Holders of the requisite principal amount of
outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, the principal amount of a
Discount Security that shall be deemed to be outstanding for such purposes
shall be the amount of the principal thereof that would be due and payable as
of the date of such determination upon a declaration of acceleration of the
Maturity thereof pursuant to Section 6.2.

 13
 

 

Section 2.10.          Treasury
Securities.

In determining whether the Holders of the required principal amount of
Securities of a Series have concurred in any request, demand, authorization,
direction, notice, consent or waiver Securities of a Series owned by the
Company or an Affiliate shall be disregarded, except that for the purposes of
determining whether the Trustee shall be protected in relying on any such
request, demand, authorization, direction, notice, consent or waiver only
Securities of a Series that the Trustee knows are so owned shall be so
disregarded.

Section 2.11.          Temporary
Securities.

Until definitive Securities are ready for delivery, the Company may
prepare and the Trustee shall authenticate temporary Securities upon a Company
Order.  Temporary Securities shall be
substantially in the form of definitive Securities but may have variations that
the Company considers appropriate for temporary Securities.  Without unreasonable delay, the Company shall
prepare and the Trustee upon request shall authenticate definitive Securities
of the same Series and date of maturity in exchange for temporary
Securities.  Until so exchanged,
temporary Securities shall have the same rights under this Indenture as the
definitive Securities.

Section 2.12.          Cancellation.

The
Company at any time may deliver Securities to the Trustee for
cancellation.  The Registrar and the
Paying Agent shall forward to the Trustee any Securities surrendered to them
for registration of transfer, exchange or payment.  The Trustee shall cancel all Securities
surrendered for transfer, exchange, payment, replacement or cancellation and
shall destroy such canceled Securities (subject to the record retention
requirement of the Exchange Act) and deliver a certificate of such destruction
to the Company, unless the Company otherwise directs.  The Company may not issue new Securities to
replace Securities that it has paid or delivered to the Trustee for
cancellation.

Section 2.13.          Defaulted
Interest.

If the Company defaults in a payment of interest on a Series of
Securities, it shall pay the defaulted interest, plus, to the extent permitted
by law, any interest payable on the defaulted interest, to the persons who are
Securityholders of the Series on a subsequent special record date.  The Company shall fix the record date and
payment date.  At least 30 days before
the record date, the Company shall mail to the Trustee and to each
Securityholder of the Series a notice that states the record date, the payment
date and the amount of interest to be paid. 
The Company may pay defaulted interest in any other lawful manner.

Section 2.14.          Global
Securities.

2.14.1.     Terms of Securities.  A Board Resolution, a supplemental indenture
hereto or an Officers’ Certificate shall establish whether the Securities of a
Series shall be issued in whole or in part in the form of one or more Global
Securities and the Depository for such Global Security or Securities.

 14
 

 

2.14.2.     Transfer and
Exchange.  Notwithstanding any
provisions to the contrary contained in Section 2.7 of the Indenture and in
addition thereto, any Global Security shall be exchangeable pursuant to Section
2.7 of the Indenture for Securities registered in the names of Holders other
than the Depository for such Security or its nominee only if (i) such
Depository notifies the Company that it is unwilling or unable to continue as
Depository for such Global Security or if at any time such Depository ceases to
be a clearing agency registered under the Exchange Act, and, in either case,
the Company fails to appoint a successor Depository within 90 days of such
event, (ii) the Company executes and delivers to the Trustee an Officers’
Certificate to the effect that such Global Security shall be so exchangeable or
(iii) an Event of Default with respect to the Securities represented by such
Global Security shall have happened and be continuing.  Any Global Security that is exchangeable
pursuant to the preceding sentence shall be exchangeable for Securities
registered in such names as the Depository shall direct in writing in an
aggregate principal amount equal to the principal amount of the Global Security
with like tenor and terms.

Except as provided in this Section 2.14.2, a Global Security may not be
transferred except as a whole by the Depository with respect to such Global
Security to a nominee of such Depository, by a nominee of such Depository to
such Depository or another nominee of such Depository or by the Depository or
any such nominee to a successor Depository or a nominee of such a successor Depository.

2.14.3.             Legend.  Unless otherwise provided pursuant to Section
2.2, any Global Security issued hereunder shall bear a legend in substantially
the following form:

 “This Security is a Global
Security within the meaning of the Indenture hereinafter referred to and is
registered in the name of the Depository or a nominee of the Depository.  This Security is exchangeable for Securities
registered in the name of a person other than the Depository or its nominee only
in the limited circumstances described in the Indenture, and may not be
transferred except as a whole by the Depository to a nominee of the Depository,
by a nominee of the Depository to the Depository or another nominee of the
Depository or by the Depository or any such nominee to a successor Depository
or a nominee of such a successor Depository.”

2.14.4.             Acts
of Holders.  The Depository, as a
Holder, may appoint agents and otherwise authorize participants to give or take
any request, demand, authorization, direction, notice, consent, waiver or other
action which a Holder is entitled to give or take under the Indenture.

2.14.5.             Payments.  Notwithstanding the other provisions of this
Indenture, unless otherwise specified as contemplated by Section 2.2,
payment of the principal of, premium, if any, and interest, if any, on any
Global Security shall be made to the Holder thereof.

2.14.6.             Consents,
Declaration and Directions.  Except
as provided in Section 2.14.5, the Company, the Trustee and any Agent shall
treat a person as the Holder of such principal amount of outstanding Securities
of such Series represented by a Global Security as shall be specified in a
written statement of the Depository with respect to such Global Security, 

 15
 

for purposes of obtaining any consents, declarations, waivers or directions
required to be given by the Holders pursuant to this Indenture.

 

Section 2.15.          CUSIP
Numbers.

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

ARTICLE
III.

REDEMPTION

Section 3.1.            Notice
to Trustee.

The Company may, with respect to any Series of Securities, reserve the
right to redeem and pay the Series of Securities or may covenant to redeem and
pay the Series of Securities or any part thereof prior to the Stated Maturity
thereof at such time and on such terms as provided for in such Securities.  If a Series of Securities is redeemable and
the Company wants or is obligated to redeem prior to the Stated Maturity
thereof all or part of the Series of Securities pursuant to the terms of such Securities,
it shall notify the Trustee of the redemption date and the principal amount of
Series of Securities to be redeemed.  The
Company shall give the notice at least 45 days before the redemption date (or
such shorter notice as may be acceptable to the Trustee).

Section 3.2.            Selection
of Securities to be Redeemed.

Unless otherwise indicated for a particular Series by a Board
Resolution, a supplemental indenture or an Officers’ Certificate, if less than
all the Securities of a Series are to be redeemed, the Trustee shall select the
Securities of the Series to be redeemed in any manner that the Trustee deems
fair and appropriate.  The Trustee shall
make the selection from Securities of the Series outstanding not previously
called for redemption.  The Trustee may
select for redemption portions of the principal of Securities of the Series
that have denominations larger than $2,000. 
Securities of the Series and portions of them it selects shall be in
amounts of $2,000 or whole multiples of $2,000 or, with respect to Securities
of any Series issuable in other denominations pursuant to Section 2.2.10, the
minimum principal denomination for each Series and integral multiples
thereof.  Provisions of this Indenture
that apply to Securities of a Series called for redemption also apply to
portions of Securities of that Series called for redemption.

Section 3.3.            Notice
of Redemption.

Unless otherwise indicated for a particular Series by a Board
Resolution, a supplemental indenture hereto or an Officers’ Certificate, at
least 30 days but not more than 60 days before a redemption date, the Company
shall mail a notice of redemption by first-class mail 

 16
 

to each Holder whose Securities are to be redeemed and if any Bearer
Securities are outstanding, publish on one occasion a notice in an Authorized
Newspaper.

 

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

(a)           the redemption date;

(b)           the redemption price;

(c)           the name and address of the Paying
Agent;

(d)           that Securities of the Series called
for redemption must be surrendered to the Paying Agent to collect the
redemption price;

(e)           that interest on Securities of the
Series called for redemption ceases to accrue on and after the redemption date;
and

(f)            any other information as may be
required by the terms of the particular Series or the Securities of a Series
being redeemed.

At the Company’s request, the Trustee shall give the notice of
redemption in the Company’s name and at its expense.

Section 3.4.            Effect
of Notice of Redemption.

Once notice of redemption is mailed or published as provided in Section
3.3, Securities of a Series called for redemption become due and payable on the
redemption date and at the redemption price. 
A notice of redemption may not be conditional.  Upon surrender to the Paying Agent, such
Securities shall be paid at the redemption price plus accrued interest to the
redemption date.

Section 3.5.            Deposit
of Redemption Price.

On or before the redemption date, the Company shall deposit with the
Paying Agent money sufficient to pay the redemption price of and accrued
interest, if any, on all Securities to be redeemed on that date.

Section 3.6.            Securities
Redeemed in Part.

Upon surrender of a Security that is redeemed in part, the Trustee
shall authenticate for the Holder a new Security of the same Series and the
same Maturity equal in principal amount to the unredeemed portion of the
Security surrendered.

 17
 

 

ARTICLE
IV.

COVENANTS

Section 4.1.            Payment
of Principal and Interest.

The
Company covenants and agrees for the benefit of the Holders of each Series of Securities
that it will duly and punctually pay the principal of and interest, if any, on
the Securities of that Series in accordance with the terms of such Securities
and this Indenture.

Section 4.2.            SEC
Reports.

The Company shall deliver to the Trustee within 15 days after it files
them with the SEC copies of the annual reports and of the information,
documents, and other reports (or copies of such portions of any of the
foregoing as the SEC may by rules and regulations prescribe) which the Company
is required to file with the SEC pursuant to Section 13 or 15(d) of the
Exchange Act.  The Company also shall
comply with the other provisions of TIA Section 314(a).

Section 4.3.            Compliance
Certificate.

The Company shall deliver to the Trustee, within 90 days after the end
of each fiscal year of the Company, an Officers’ Certificate stating that a
review of the activities of the Company and its Subsidiaries during the
preceding fiscal year has been made under the supervision of the signing
Officers with a view to determining whether the Company has kept, observed,
performed and fulfilled its obligations under this Indenture, and further
stating, as to each such Officer signing such certificate, that to the best of
his knowledge the Company has kept, observed, performed and fulfilled each and
every covenant contained in this Indenture and is not in default in the
performance or observance of any of the terms, provisions and conditions hereof
(or, if a Default or Event of Default shall have occurred, describing all such
Defaults or Events of Default of which he may have knowledge).

The Company will, so long as any of the Securities are outstanding,
deliver to the Trustee, forthwith upon becoming aware of any Default or Event
of Default, an Officers’ Certificate specifying such Default or Event of
Default and what action the Company is taking or proposes to take with respect
thereto.

Section 4.4.            Stay,
Extension and Usury Laws.

The Company covenants (to the extent that it may lawfully do so) that
it will not at any time insist upon, plead, or in any manner whatsoever claim
or take the benefit or advantage of, any stay, extension or usury law wherever
enacted, now or at any time hereafter in force, which may affect the covenants
or the performance of this Indenture or the Securities; and the Company (to the
extent it may lawfully do so) hereby expressly waives all benefit or advantage
of any such law and covenants that it will not, by resort to any such law,
hinder, delay or impede the execution of any power herein granted to the
Trustee, but will suffer and permit the execution of every such power as though
no such law has been enacted.

 18
 

 

Section 4.5.            Corporate
Existence.

Subject to Article V, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate
existence and the corporate, partnership or other existence of each Significant
Subsidiary in accordance with the respective organizational documents of each
Significant Subsidiary and the rights (charter and statutory), licenses and
franchises of the Company and its Significant Subsidiaries; provided, however,
that the Company shall not be required to preserve any such right, license or
franchise, or the corporate, partnership or other existence of any Significant
Subsidiary, if the Board of Directors shall determine that the preservation
thereof is no longer desirable in the conduct of the business of the Company
and its Subsidiaries taken as a whole and that the loss thereof is not adverse
in any material respect to the Holders.

Section 4.6.            Taxes.

The Company shall, and shall cause each of its Significant Subsidiaries
to, pay prior to delinquency all taxes, assessments and governmental levies,
except as contested in good faith and by appropriate proceedings.

ARTICLE
V.

SUCCESSORS

Section 5.1.            When
Company May Merge, Etc.

The Company shall not consolidate with or merge into, or convey,
transfer or lease all or substantially all of its properties and assets to, any
person (a “successor person”), and may not permit any person to merge into, or
convey, transfer or lease its properties and assets  substantially as an entirety to, the Company,
unless:

(a)           the successor person (if any) is a
corporation, partnership, trust or other entity organized and validly existing
under the laws of any U.S. domestic jurisdiction and expressly assumes the
Company’s obligations on the Securities and under this Indenture and

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

The Company shall deliver to the Trustee prior to the consummation of
the proposed transaction an Officers’ Certificate to the foregoing effect and
an Opinion of Counsel stating that the proposed transaction and such
supplemental indenture comply with this Indenture.

Section 5.2.            Successor
Corporation Substituted.

Upon any consolidation or merger, or any sale, lease, conveyance or
other disposition of all or substantially all of the assets of the Company in
accordance with Section 5.1, the successor corporation formed by such
consolidation or into or with which the Company is merged or to which such
sale, lease, conveyance or other disposition is made shall succeed to, 

 19
 

and be substituted for, and may exercise every right and power of, the
Company under this Indenture with the same effect as if such successor person
has been named as the Company herein; provided, however, that the
predecessor Company in the case of a sale, lease, conveyance or other
disposition shall not be released from the obligation to pay the principal of
and interest, if any, on the Securities.

 

ARTICLE
VI.

DEFAULTS AND REMEDIES

Section 6.1.            Events
of Default.

“Event of Default,” wherever used herein with respect to Securities of
any Series, means any one of the following events, unless in the establishing
Board Resolution, supplemental indenture or Officers’ Certificate, it is
provided that such Series shall not have the benefit of said Event of Default:

(a)           default in the payment of any
interest on any Security of that Series when it becomes due and payable, and
continuance of such default for a period of 30 days (unless the entire amount
of such payment is deposited by the Company with the Trustee or with a Paying
Agent prior to the expiration of such period of 30 days); or

(b)           default in the payment of the
principal of any Security of that Series at its Maturity; or

(c)           default in the deposit of any sinking
fund payment, within 30 days when and as due in respect of any Security of that
Series; or

(d)           default in the performance or breach
of any covenant or warranty of the Company in this Indenture (other than a
covenant or warranty that has been included in this Indenture solely for the
benefit of Series of Securities other than that Series), which default
continues uncured for a period of 90 days after there has been given, by
registered or certified mail, to the Company by the Trustee or to the Company
and the Trustee by the Holders of at least 25% in principal amount of the
outstanding Securities of that Series a written notice specifying such default
or breach and requiring it to be remedied and stating that such notice is a “Notice
of Default” hereunder; or

(e)           the Company or any of its Significant
Subsidiaries pursuant to or within the meaning of any 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

 20
 

 

(v)           generally is unable to pay its debts
as the same become due; or

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

(i)            is for relief against the Company or
any of its Significant Subsidiaries in an involuntary case,

(ii)           appoints a Custodian of the Company
or any of its Significant Subsidiaries or for all or substantially all of its
property, or

(iii)          orders the liquidation of the Company
or any of its Significant Subsidiaries,

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

(g)           any other Event of Default provided
with respect to Securities of that Series, which is specified in a Board
Resolution, a supplemental indenture hereto or an Officers’ Certificate, in accordance
with Section 2.2.19.

The term “Bankruptcy Law” means title 11, U.S. Code or any similar
Federal or State law for the relief of debtors. 
The term “Custodian” means any receiver, trustee, assignee, liquidator
or similar official under any Bankruptcy Law.

Section 6.2.            Acceleration
of Maturity; Rescission and Annulment.

If an Event of Default with respect to Securities of any Series at the
time outstanding occurs and is continuing (other than an Event of Default
referred to in Section 6.1(e) or (f)) then in every such case the Trustee or
the Holders of not less than 25% in principal amount of the outstanding
Securities of that Series may declare the principal amount (or, if any
Securities of that Series are Discount Securities, such portion of the principal
amount as may be specified in the terms of such Securities) of and accrued and
unpaid interest, if any, on all of the Securities of that Series to be due and
payable immediately, by a notice in writing to the Company (and to the Trustee
if given by Holders), and upon any such declaration such principal amount (or
specified amount) and accrued and unpaid interest, if any, shall become
immediately due and payable.  If an Event
of Default specified in Section 6.1(e) or (f) shall occur, the principal amount
(or specified amount) of and accrued and unpaid interest, if any, on all
outstanding Securities shall ipso facto
become and be immediately due and payable without any declaration or other act
on the part of the Trustee or any Holder.

At any time after such a declaration of acceleration with respect to
any Series has been made and before a judgment or decree for payment of the
money due has been obtained by the Trustee as hereinafter in this Article
provided, the Holders of a majority in principal amount of the outstanding
Securities of that Series, by written notice to the Company and the Trustee,
may rescind and annul such declaration and its consequences if:

(a)           the Company has paid or deposited
with the Trustee a sum sufficient to pay

 

 21

(i)            all overdue interest, if any, on all
Securities of that Series,

(ii)           the principal of any Securities of
that Series which have become due otherwise than by such declaration of
acceleration and interest thereon at the rate or rates prescribed therefor in
such Securities,

(iii)          to the extent that payment of such
interest is lawful, interest upon any overdue principal and overdue interest at
the rate or rates prescribed therefor in such Securities, and

(iv)          all sums paid or advanced by the
Trustee hereunder and the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel;

and

(b)           all Events of Default with respect to
Securities of that Series, other than the non-payment of the principal of
Securities of that Series which have become due solely by such declaration of
acceleration, have been cured or waived as provided in Section 6.13.

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

Section 6.3.            Collection
of Indebtedness and Suits for Enforcement by Trustee.

The Company covenants that if

(a)           default is made in the payment of any
interest on any Security when such interest becomes due and payable and such
default continues for a period of 30 days, or

(b)           default is made in the payment of
principal of any Security at the Maturity thereof, or

(c)           default is made in the deposit of any
sinking fund payment when and as due by the terms of a Security,

then, the Company will, upon demand of the
Trustee, pay to it, for the benefit of the Holders of such Securities, the
whole amount then due and payable on such Securities for principal and interest
and, to the extent that payment of such interest shall be legally enforceable,
interest on any overdue principal or any overdue interest, at the rate or rates
prescribed therefor in such Securities, and, in addition thereto, 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.

If the Company fails to pay such amounts forthwith upon such demand,
the Trustee, in its own name and as trustee of an express trust, may institute
a judicial proceeding for the collection of the sums so due and unpaid, may
prosecute such proceeding to judgment or 

 22
 

final decree and may enforce the same against the Company or any other
obligor upon such Securities and collect the moneys adjudged or deemed to be
payable in the manner provided by law out of the property of the Company or any
other obligor upon such Securities, wherever situated.

 

If an Event of Default with respect to any Securities of any Series
occurs and is continuing, the Trustee may in its discretion proceed to protect
and enforce its rights and the rights of the Holders of Securities of such
Series by such appropriate judicial proceedings as the Trustee shall deem most
effectual to protect and enforce any such rights, whether for the specific
enforcement of any covenant or agreement in this Indenture or in aid of the
exercise of any power granted herein, or to enforce any other proper remedy.

Section 6.4.            Trustee
May File Proofs of Claim.

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

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

(b)           to collect and receive any moneys or
other property payable or deliverable on any such claims and to distribute the
same, and any custodian, receiver, assignee, trustee, liquidator, sequestrator
or other similar official in any such judicial proceeding is hereby authorized
by each Holder to make such payments to the Trustee and, in the event that the
Trustee shall consent to the making of such payments directly to the Holders,
to pay to the Trustee any amount due it for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel,
and any other amounts due the Trustee under Section 7.7.

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

Section 6.5.            Trustee
May Enforce Claims Without Possession of Securities.

All rights of action and claims under this Indenture or the Securities
may be prosecuted and enforced by the Trustee without the possession of any of
the Securities or the 

 23
 

production thereof in any proceeding relating thereto, and any such
proceeding instituted by the Trustee shall be brought in its own name as
trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Holders of the Securities in respect of which such
judgment has been recovered.

 

Section 6.6.            Application
of Money Collected.

Any money collected by the Trustee pursuant to this
Article shall be applied in the following order, at the date or dates fixed by
the Trustee and, in case of the distribution of such money on account of
principal or interest, upon presentation of the Securities and the notation
thereon of the payment if only partially paid and upon surrender thereof if
fully paid:

First:             To
the payment of all amounts due the Trustee under Section 7.7; and

Second:        To
the payment of the amounts then due and unpaid for principal of and interest on
the Securities in respect of which or for the benefit of which such money has
been collected, ratably, without preference or priority of any kind, according
to the amounts due and payable on such Securities for principal and interest,
respectively; and

Third:           To
the Company.

Section 6.7.            Limitation
on Suits.

No Holder of any Security of any Series shall have any right to
institute any proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless

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

(b)           the Holders of not less than 25% in
principal amount of the outstanding Securities of that Series shall have made
written request to the Trustee to institute proceedings in respect of such
Event of Default in its own name as Trustee hereunder;

(c)           such Holder or Holders have offered
to the Trustee reasonable indemnity against the costs, expenses and liabilities
to be incurred in compliance with such request;

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

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

it
being understood and intended that no one or more of such Holders shall have
any right in any manner whatever by virtue of, or by availing of, any provision
of this Indenture to affect, disturb or prejudice the rights of any other of
such Holders, or to obtain or to seek to obtain priority or 

 24
 

preference
over any other of such Holders or to enforce any right under this Indenture,
except in the manner herein provided and for the equal and ratable benefit of
all such Holders.

Section 6.8.            Unconditional
Right of Holders to Receive Principal and Interest.

Notwithstanding any other provision in this Indenture, the Holder of
any Security shall have the right, which is absolute and unconditional, to
receive payment of the principal of and interest, if any, on such Security on
the Stated Maturity or Stated Maturities expressed in such Security (or, in the
case of redemption, on the redemption date) and to institute suit for the
enforcement of any such payment, and such rights shall not be impaired without
the consent of such Holder.

Section 6.9.            Restoration
of Rights and Remedies.

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

Section 6.10.          Rights
and Remedies Cumulative.

Except as otherwise provided with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Securities in Section 2.8, no right or
remedy herein conferred upon or reserved to the Trustee or to the Holders is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at
law or in equity or otherwise.  The
assertion or employment of any right or remedy hereunder, or otherwise, shall
not prevent the concurrent assertion or employment of any other appropriate
right or remedy.

Section 6.11.          Delay
or Omission Not Waiver.

No delay or omission of the Trustee or of any Holder of any Securities
to exercise any right or remedy accruing upon any Event of Default shall impair
any such right or remedy or constitute a waiver of any such Event of Default or
an acquiescence therein.  Every right and
remedy given by this Article or by law to the Trustee or to the Holders may be
exercised from time to time, and as often as may be deemed expedient, by the
Trustee or by the Holders, as the case may be.

Section 6.12.          Control
by Holders.

The Holders of a majority in principal amount of the outstanding
Securities of any Series shall have the right to direct the time, method and
place of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred on the Trustee, with respect to the
Securities of such Series, provided that

 25
 

 

(a)           such direction shall not be in
conflict with any rule of law or with this Indenture,

(b)           the Trustee may take any other action
deemed proper by the Trustee which is not inconsistent with such direction, and

(c)           subject to the provisions of Section
6.1, the Trustee shall have the right to decline to follow any such direction
if the Trustee in good faith shall, by a Responsible Officer of the Trustee,
determine that the proceeding so directed would involve the Trustee in personal
liability.

Section 6.13.          Waiver
of Past Defaults.

Subject to Section 6.2, the Holders of not less than a majority in
principal amount of the outstanding Securities of any Series may on behalf of
the Holders of all the Securities of such Series waive any past Default
hereunder with respect to such Series and its consequences, except a Default in
the payment of the principal of or interest on any Security of such Series
(provided, however, that the Holders of a majority in principal amount of the
outstanding Securities of any Series may rescind an acceleration and its
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 this Indenture; but no
such waiver shall extend to any subsequent or other Default or impair any right
consequent thereon.

Section 6.14.          Undertaking
for Costs.

All parties to this Indenture agree, and each Holder of any Security by
his acceptance thereof shall be deemed to have agreed, that any court may in
its discretion require, in any suit for the enforcement of any right or remedy
under this Indenture, or in any suit against the Trustee for any action taken,
suffered or omitted by it as Trustee, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may
in its discretion assess reasonable costs, including reasonable attorneys’
fees, against any party litigant in such suit, having due regard to the merits
and good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to any suit instituted by the
Company, to any suit instituted by the Trustee, to any suit instituted by any
Holder, or group of Holders, holding in the aggregate more than 10% in
principal amount of the outstanding Securities of any Series, or to any suit
instituted by any Holder for the enforcement of the payment of the principal of
or interest on any Security on or after the Stated Maturity or Stated
Maturities expressed in such Security (or, in the case of redemption, on the
redemption date).

ARTICLE
VII.

TRUSTEE

Section 7.1.            Duties
of Trustee.

                                                                (a)           If an Event of Default has occurred and is continuing, the
Trustee shall exercise the rights and powers vested in it by this Indenture and
use the same degree of 

 26
 

                                                care
and skill in their exercise as a prudent man would exercise or use under the
circumstances in the conduct of his own affairs.

 

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

(i)            The Trustee need perform only those
duties that are specifically set forth in this Indenture and no others.

(ii)           In the absence of bad faith on its
part, the Trustee may conclusively rely, as to the truth of the statements and
the correctness of the opinions expressed therein, upon Officers’ Certificates
or Opinions of Counsel furnished to the Trustee and conforming to the
requirements of this Indenture; however, in the case of any such
Officers’ Certificates or Opinions of Counsel which by any provisions hereof
are specifically required to be furnished to the Trustee, the Trustee shall
examine such Officers’ Certificates and Opinions of Counsel to determine
whether or not they conform to the requirements of this Indenture.

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

(i)            This paragraph does not limit the
effect of paragraph (b) of this Section.

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

(iii)          The Trustee shall not be liable with
respect to any action taken, suffered or omitted to be taken by it with respect
to Securities of any Series in good faith in accordance with the direction of
the Holders of a majority in principal amount of the outstanding Securities of
such Series relating to the time, method and place of conducting any proceeding
for any remedy available to the Trustee, or exercising any trust or power
conferred upon the Trustee, under this Indenture with respect to the Securities
of such Series.

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

(e)           The Trustee may refuse to perform any
duty or exercise any right or power unless it receives indemnity satisfactory
to it against any loss, liability or expense.

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

(g)           No provision of this Indenture shall
require the Trustee to risk its own funds or otherwise incur any financial
liability in the performance of any of its duties, or 

 27
 

                                                in
the exercise of any of its rights or powers, if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity
against such risk is not reasonably assured to it.

 

                                                                (h)           The Paying Agent, the Registrar and any authenticating
agent shall be entitled to the protections and immunities as are set forth in
paragraphs (a), (b) and (c) of this Section with respect to the Trustee.

 

                Section 7.2.            Rights
of Trustee.

 

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

 

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

 

                                                (c)           The Trustee may act through agents
and shall not be responsible for the misconduct or negligence of any agent
appointed with due care.  No Depository
shall be deemed an agent of the Trustee and the Trustee shall not be
responsible for any act or omission by any Depository.

 

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

 

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

 

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

 

Section 7.3.            Individual Rights of Trustee.

The Trustee in its individual or any other capacity may become the
owner or pledgee of Securities and may otherwise deal with the Company or an
Affiliate with the same rights it would have if it were not Trustee.  Any Agent may do the same with like
rights.  The Trustee is also subject to
Sections 7.10 and 7.11.

 28
 

Section 7.4.            Trustee’s
Disclaimer.

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

Section 7.5.            Notice
of Defaults.

If a Default or Event of Default occurs and is continuing with respect
to the Securities of any Series and if it is known to a Responsible Officer of
the Trustee, the Trustee shall mail to each Securityholder of the Securities of
that Series and, if any Bearer Securities are outstanding, publish on one
occasion in an Authorized Newspaper, notice of a Default or Event of Default
within 90 days after it occurs or, if later, after a Responsible Officer of the
Trustee has knowledge of such Default or Event of Default.  Except in the case of a Default or Event of
Default in payment of principal of or interest on any Security of any Series,
the Trustee may withhold the notice if and so long as its corporate trust
committee or a committee of its Responsible Officers in good faith determines
that withholding the notice is in the interests of Securityholders of that
Series.

Section 7.6.            Reports
by Trustee to Holders.

Within 60 days after May 15 in each year, the Trustee shall transmit by
mail to all Securityholders, as their names and addresses appear on the
register kept by the Registrar and, if any Bearer Securities are outstanding,
publish in an Authorized Newspaper, a brief report dated as of such May 15, in
accordance with, and to the extent required under, TIA Section 313.

A copy of each report at the time of its mailing to Securityholders of
any Series shall be filed with the SEC and each stock exchange on which the
Securities of that Series are listed. 
The Company shall promptly notify the Trustee when Securities of any
Series are listed on any stock exchange.

Section 7.7.            Compensation
and Indemnity.

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

The Company shall indemnify the Trustee (including the cost of
defending itself) against any loss, liability or expense incurred by it except
as set forth in the next paragraph in the performance of its duties under this
Indenture as Trustee or Agent.  The Trustee
shall notify the Company promptly of any claim for which it may seek
indemnity.  The Company shall defend the
claim and the Trustee shall cooperate in the defense.  The Trustee may have separate counsel and the
Company shall pay the reasonable fees and expenses of such counsel.  The Company need not pay for any settlement
made without its consent, which consent shall not be unreasonably
withheld.  This indemnification shall
apply to officers, directors, employees, shareholders and agents of the Trustee.

 29
 

 

The Company need not reimburse any expense or indemnify against any
loss or liability incurred by the Trustee or by any officer, director,
employee, shareholder or agent of the Trustee through negligence or bad faith.

To secure the Company’s payment obligations in this Section, the
Trustee shall have a lien prior to the Securities of any Series on all money or
property held or collected by the Trustee, except that held in trust to pay
principal and interest on particular Securities of that Series.

When the Trustee incurs expenses or renders services after an Event of
Default specified in Section 6.1(e) or (f) occurs, the expenses and the
compensation for the services are intended to constitute expenses of
administration under any Bankruptcy Law.

Section 7.8.            Replacement
of Trustee.

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

The Trustee may resign with respect to the Securities of one or more
Series by so notifying the Company.  The
Holders of a majority in principal amount of the Securities of any Series may
remove the Trustee with respect to that Series by so notifying the Trustee and
the Company.  The Company may remove the
Trustee with respect to Securities of one or more Series if:

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

(b)           the Trustee is adjudged a bankrupt or
an insolvent or an order for relief is entered with respect to the Trustee
under any Bankruptcy Law;

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

(d)           the Trustee becomes incapable of
acting.

If the Trustee resigns or is removed or if a vacancy exists in the
office of Trustee for any reason, the Company shall promptly appoint a
successor Trustee.  Within one year after
the successor Trustee takes office, the Holders of a majority in principal
amount of the then outstanding Securities may appoint a successor Trustee to
replace the successor Trustee appointed by the Company.

If a successor Trustee with respect to the Securities of any one or
more Series does not take office within 60 days after the retiring Trustee
resigns or is removed, the retiring Trustee, the Company or the Holders of at
least 10% in principal amount of the Securities of the applicable Series may
petition any court of competent jurisdiction for the appointment of a successor
Trustee.

 30
 

 

If the Trustee with respect to the Securities of any one or more Series
fails to comply with Section 7.10, any Securityholder of the applicable Series
may petition any court of competent jurisdiction for the removal of the Trustee
and the appointment of a successor Trustee.

A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company.  Immediately after that, the retiring Trustee
shall transfer all property held by it as Trustee to the successor Trustee
subject to the lien provided for in Section 7.7, the resignation or removal of
the retiring Trustee shall become effective, and the successor Trustee shall
have all the rights, powers and duties of the Trustee with respect to each
Series of Securities for which it is acting as Trustee under this
Indenture.  A successor Trustee shall
mail a notice of its succession to each Securityholder of each such Series and,
if any Bearer Securities are outstanding, publish such notice on one occasion
in an Authorized Newspaper. 
Notwithstanding replacement of the Trustee pursuant to this Section 7.8,
the Company’s obligations under Section 7.7 hereof shall continue for the
benefit of the retiring trustee with respect to expenses and liabilities
incurred by it prior to such replacement.

Section 7.9.            Successor
Trustee by Merger, Etc.

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

Section 7.10.          Eligibility;
Disqualification.

This Indenture shall always have a Trustee who satisfies the
requirements of TIA Section 310(a)(1), (2) and (5).  The Trustee shall always have a combined
capital and surplus of at least $25,000,000 as set forth in its most recent
published annual report of condition. 
The Trustee shall comply with TIA Section 310(b).

Section 7.11.          Preferential
Collection of Claims Against Company.

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

ARTICLE
VIII.

SATISFACTION AND DISCHARGE; DEFEASANCE

Section 8.1.            Satisfaction
and Discharge of Indenture.

This Indenture shall upon Company Order cease to be of further effect
(except as hereinafter provided in this Section 8.1), and the Trustee, at the
expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when

(a)           either

 

 31

(i)            all Securities theretofore
authenticated and delivered (other than Securities that have been destroyed,
lost or stolen and that have been replaced or paid) have been delivered to the
Trustee for cancellation; or

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

(1)           have become due and payable, or

(2)           will become due and payable at their Stated Maturity
within one year, or

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

(4)           are deemed paid and discharged pursuant to Section 8.3, as
applicable;

and
the Company, in the case of (1), (2) or (3) above, has deposited or caused to
be deposited with the Trustee as trust funds in trust an amount sufficient for
the purpose of paying and discharging the entire indebtedness on such
Securities not theretofore delivered to the Trustee for cancellation, for
principal and interest to the date of such deposit (in the case of Securities
which have become due and payable on or prior to the date of such deposit) or
to the Stated Maturity or redemption date, as the case may be;

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

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

Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 7.7, and, if money
shall have been deposited with the Trustee pursuant to clause (a) of this
Section, the provisions of Sections 2.4, 2.7, 2.8, 8.1, 8.2 and 8.5 shall
survive.

Section 8.2.            Application
of Trust Funds; Indemnification.

(a)           Subject to the provisions of Section
8.5, all money deposited with the Trustee pursuant to Section 8.1, all money
and U.S. Government Obligations or Foreign Government Obligations deposited
with the Trustee pursuant to Section 8.3 or 8.4 and all money received by the
Trustee in respect of U.S. Government Obligations or Foreign Government
Obligations deposited with the Trustee pursuant to Section 8.3 or 8.4, shall be
held in trust and applied by it, in accordance with the provisions of the
Securities and this Indenture, to the payment, either directly or through any
Paying Agent (including the 

 32
 

                                                Company
acting as its own Paying Agent) as the Trustee may determine, to the persons
entitled thereto, of the principal and interest for whose payment such money
has been deposited with or received by the Trustee or to make mandatory sinking
fund payments or analogous payments as contemplated by Sections 8.3 or 8.4.

(b)                           The
Company shall pay and shall indemnify the Trustee against any tax, fee or other
charge imposed on or assessed against U.S. Government Obligations or Foreign
Government Obligations deposited pursuant to Sections 8.3 or 8.4 or the
interest and principal received in respect of such obligations other than any
payable by or on behalf of Holders.

(c)           The Trustee shall deliver or pay to
the Company from time to time upon Company Request any U.S. Government
Obligations or Foreign Government Obligations or money held by it as provided
in Sections 8.3 or 8.4 which, in the opinion of a nationally recognized firm of
independent certified public accountants expressed in a written certification
thereof delivered to the Trustee, are then in excess of the amount thereof
which then would have been required to be deposited for the purpose for which
such U.S. Government Obligations or Foreign Government Obligations or money
were deposited or received.  This
provision shall not authorize the sale by the Trustee of any U.S. Government
Obligations or Foreign Government Obligations held under this Indenture.

Section 8.3.            Legal
Defeasance of Securities of any Series.

Unless this Section 8.3 is otherwise specified pursuant to Section
2.2.21 to be inapplicable to Securities of any Series, the Company shall be
deemed to have paid and discharged the entire indebtedness on all the
outstanding Securities of such Series on the 91st day after the date of the
deposit referred to in subparagraph (d) hereof, and the provisions of this
Indenture, as it relates to such outstanding Securities of such Series, shall
no longer be in effect (and the Trustee, at the expense of the Company, shall,
at Company Request, execute proper instruments acknowledging the same), except
as to:

(a)           the rights of Holders of Securities
of such Series to receive, from the trust funds described in subparagraph (d)
hereof, (i) payment of the principal of and each installment of principal of
and interest on the outstanding Securities of such Series on the Stated
Maturity of such principal or installment of principal or interest and (ii) the
benefit of any mandatory sinking fund payments applicable to the Securities of
such Series on the day on which such payments are due and payable in accordance
with the terms of this Indenture and the Securities of such Series;

(b)           the provisions of Sections 2.4, 2.7,
2.8, 8.2, 8.3 and 8.5; and

(c)           the rights, powers, trust and
immunities of the Trustee hereunder;

provided
that, the following conditions shall have been satisfied:

                                                                (d)           the Company shall have deposited or caused to be deposited
irrevocably with the Trustee as trust funds in trust for the purpose of making
the following payments, 

 33
 

                                                specifically
pledged as security for and dedicated solely to the benefit of the Holders of
such Securities (i) in the case of Securities of such Series denominated in
Dollars, cash in Dollars (or such other money or currencies as shall then be
legal tender in the United States) and/or U.S. Government Obligations, or (ii)
in the case of Securities of such Series denominated in a Foreign Currency
(other than a composite currency), money and/or Foreign Government Obligations,
which through the payment of interest and principal in respect thereof, in
accordance with their terms, will provide (and without reinvestment and
assuming no tax liability will be imposed on such Trustee), not later than one
day before the due date of any payment of money, an amount in cash, sufficient,
in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the
Trustee, to pay and discharge each installment of principal (including
mandatory sinking fund or analogous payments) of and interest, if any, on all
the Securities of such Series on the dates such installments of interest or
principal are due;
                

                                                                (e)           such deposit will not result in a breach or violation of,
or constitute a default under, this Indenture or any other agreement or
instrument to which the Company is a party or by which it is bound;

 

(f)            no Default or Event of Default with
respect to the Securities of such Series shall have occurred and be continuing
on the date of such deposit or during the period ending on the 91st day after
such date;

(g)           the Company shall have delivered to
the Trustee an Officers’ Certificate and an Opinion of Counsel to the effect
that (i) the Company has received from, or there has been published by, the
Internal Revenue Service a ruling, or (ii) since the date of execution of this
Indenture, there has been a change in the applicable Federal income tax law, in
either case to the effect that, and based thereon such Opinion of Counsel shall
confirm that, the Holders of the Securities of such Series will not recognize
income, gain or loss for Federal income tax purposes as a result of such
deposit, defeasance and discharge and will be subject to Federal income tax on
the same amount and in the same manner and at the same times as would have been
the case if such deposit, defeasance and discharge had not occurred;

(h)           the Company shall have delivered to
the Trustee an Officers’ Certificate stating that the deposit was not made by
the Company with the intent of preferring the Holders of the Securities of such
Series over any other creditors of the company or with the intent of defeating,
hindering, delaying or defrauding any other creditors of the Company;

(i)            such deposit shall not result in the
trust arising from such deposit constituting an investment company (as defined
in the Investment Company Act of 1940, as amended), or such trust shall be
qualified under such Act or exempt from regulation thereunder; and

 34
 

(j)            the Company shall have delivered to
the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating
that all conditions precedent provided for relating to the defeasance
contemplated by this Section have been complied with.

Section 8.4.            Covenant
Defeasance.

Unless this Section 8.4 is otherwise specified pursuant to Section
2.2.21 to be inapplicable to Securities of any Series, on and after the 91st
day after the date of the deposit referred to in subparagraph (a) hereof, the
Company may omit to comply with any term, provision or condition set forth
under Sections 4.2, 4.3, 4.4, 4.5, 4.6, and 5.1 as well as any additional
covenants contained in a supplemental indenture hereto for a particular Series
of Securities or a Board Resolution or an Officers’ Certificate delivered
pursuant to Section 2.2.21 (and the failure to comply with any such covenants
shall not constitute a Default or Event of Default under Section 6.1) and the
occurrence of any event described in clause (e) of Section 6.1 shall not
constitute a Default or Event of Default hereunder, with respect to the
Securities of such Series, provided that the following conditions shall have
been satisfied:

(a)           With reference to this Section 8.4,
the Company has deposited or caused to be irrevocably deposited (except as
provided in Section 8.2(c)) with the Trustee as trust funds in trust,
specifically pledged as security for, and dedicated solely to, the benefit of
the Holders of such Securities (i) in the case of Securities of such Series
denominated in Dollars, cash in Dollars (or such other money or currencies as
shall then be legal tender in the United States) and/or U.S. Government
Obligations, or (ii) in the case of Securities of such Series denominated in a
Foreign Currency (other than a composite currency), money and/or Foreign
Government Obligations, which through the payment of interest and principal in respect
thereof, in accordance with their terms, will provide (and without reinvestment
and assuming no tax liability will be imposed on such Trustee), not later than
one day before the due date of any payment of money, an amount in cash,
sufficient, in the opinion of a nationally recognized firm of independent
certified public accountants expressed in a written certification thereof
delivered to the Trustee, to pay principal and interest, if any, on and any
mandatory sinking fund in respect of the Securities of such Series on the dates
such installments of interest or principal are due;

(b)           Such deposit will not result in a
breach or violation of, or constitute a default under, this Indenture or any
other agreement or instrument to which the Company is a party or by which it is
bound;

(c)           No Default or Event of Default with
respect to the Securities of such Series shall have occurred and be continuing
on the date of such deposit or during the period ending on the 91st day after
such date;

(d)           the Company shall have delivered to
the Trustee an Opinion of Counsel confirming that Holders of the Securities of
such Series will not recognize income, gain or loss for federal income tax
purposes as a result of such deposit and defeasance and will be subject to federal
income tax on the same amounts, in the same manner and at the same times as
would have been the case if such deposit and defeasance had not occurred;

 35
 

(e)           the Company shall have delivered to
the Trustee an Officers’ Certificate stating the deposit was not made by the
Company with the intent of preferring the Holders of the Securities of such
Series over any other creditors of the Company or with the intent of defeating,
hindering, delaying or defrauding any other creditors of the Company; and

(f)            The Company shall have delivered to
the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating
that all conditions precedent herein provided for relating to the defeasance
contemplated by this Section have been complied with.

Section 8.5.            Repayment
to Company.

The Trustee and the Paying Agent shall pay to the Company upon request
any money held by them for the payment of principal and interest that remains
unclaimed for two years.  After that,
Securityholders entitled to the money must look to the Company for payment as
general creditors unless an applicable abandoned property law designates
another person.

Section 8.6.            Reinstatement.

If the Trustee or Paying Agent is unable to apply any money or U.S.
Government Obligations in accordance with Sections 8.1, 8.3 or 8.4, as the case
may be, by reason of any legal proceeding or by reason of any order or judgment
of any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, the Company’s obligations under this Indenture
and the Securities shall be revived and reinstated as though no deposit had
occurred pursuant to Section 8.1, 8.3 or 8.4, as the case may be, until such
time as the Trustee or Paying Agent is permitted to apply all such money or
U.S. Government Obligations in accordance with Section 8.1, 8.3 or 8.4, as the
case may be; provided, however, that if the Company makes any
payment of principal of, premium, if any, or interest on any Securities because
of reinstatement of its obligations, the Company shall be subrogated to the
rights of the holders of such Securities to receive such payment from the money
or U.S. Government Obligations held by the Trustee or Paying Agent.

ARTICLE
IX.

AMENDMENTS AND WAIVERS

Section 9.1.            Without
Consent of Holders.

The Company and the Trustee may amend or supplement this Indenture or
the Securities of one or more Series without the consent of any Securityholder:

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

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

(c)           to provide for the assumption of our obligations to
holders of any debt security in the case of a merger or consolidation or sale
of all or substantially all of our assets;

 36
 

(d)           to make any change that would provide any additional
rights or benefits to the holders of securities or that does not adversely
affect the legal rights under the Indenture of any such holder;

(e)           to comply with requirements of the SEC in order to effect
or maintain the qualification of an indenture under the Trust Indenture Act;

(f)            to conform the text of the indentures to any provision of
the Description of Debt Securities to the extent that such provision in the
Description of Debt Securities was intended to be a verbatim recitation of a
provision of the indentures;

(g)           to provide for the issuance of additional securities in
accordance with the limitations set forth in the indenture as of the date of
the indenture;

(h)           to allow any guarantor to execute a supplemental indenture
with respect to debt securities and to release guarantors in accordance with
the terms of the indenture; or

(i)            to add additional obligors under the indenture and the
securities.

The
consent of holders is not necessary under the indentures to approve the
particular form of any
proposed amendment. It is sufficient if such consent approves the substance of
the proposed amendment.

Section 9.2.            With
Consent of Holders.

The Company and the Trustee may enter into a supplemental indenture
with the written consent of the Holders of at least a majority in principal
amount of the outstanding Securities of each Series affected by such
supplemental indenture (including consents obtained in connection with a tender
offer or exchange offer for the Securities of such Series), for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of any supplemental indenture or of modifying
in any manner the rights of the Securityholders of each such Series.  Except as provided in Section 6.13, the
Holders of at least a majority in principal amount of the outstanding
Securities of each Series affected by such waiver by notice to the Trustee
(including consents obtained in connection with a tender offer or exchange
offer for the Securities of such Series) may waive compliance by the Company
with any provision of this Indenture or the Securities with respect to such
Series.

It shall not be necessary for the consent of the Holders of Securities
under this Section 9.2 to approve the particular form of any proposed
supplemental indenture or waiver, but it shall be sufficient if such consent
approves the substance thereof.  After a
supplemental indenture or waiver under this section becomes effective, the
Company shall mail to the Holders of Securities affected thereby and, if any
Bearer Securities affected thereby are outstanding, publish on one occasion in
an Authorized Newspaper, a notice briefly describing the supplemental indenture
or waiver.  Any failure by the Company to
mail or publish such notice, or any defect therein, shall not, however, in any
way impair or affect the validity of any such supplemental indenture or waiver.

 37
 

Section 9.3.            Limitations.

               Without the consent of
each Securityholder affected, an amendment or waiver may not:

(a)           change the amount of Securities whose
Holders must consent to an amendment, supplement or waiver;

(b)           reduce the rate of or extend the time
for payment of interest (including default interest) on any Security;

(c)           reduce the principal or change the Stated
Maturity of any Security or reduce the amount of, or postpone the date fixed
for, the payment of any sinking fund or analogous obligation;

(d)           reduce the principal amount of
Discount Securities payable upon acceleration of the maturity thereof;

(e)           waive a Default or Event of Default
in the payment of the principal of or interest, if any, on any Security (except
a rescission of acceleration of the Securities of any Series by the Holders of
at least a majority in principal amount of the outstanding Securities of such
Series and a waiver of the payment default that resulted from such
acceleration);

(f)            make the principal of or interest,
if any, on any Security payable in any currency other than that stated in the
Security;

(g)           make any change in Sections 6.8,
6.13, 9.3 (this sentence), 10.15 or 10.16; or

(h)           waive a redemption payment with
respect to any Security or change any of the provisions with respect to the
redemption of any Securities.

Section 9.4.            Compliance
with Trust Indenture Act.

Every amendment to this Indenture or the Securities of one or more
Series shall be set forth in a supplemental indenture hereto that complies with
the TIA as then in effect.

Section 9.5.            Revocation
and Effect of Consents.

Until an amendment or waiver becomes effective, a consent to it by a
Holder of a Security is a continuing consent by the Holder and every subsequent
Holder of a Security or portion of a Security that evidences the same debt as
the consenting Holder’s Security, even if notation of the consent is not made
on any Security.  However, any such
Holder or subsequent Holder may revoke the consent as to his Security or
portion of a Security if the Trustee receives the notice of revocation before
the date the amendment or waiver becomes effective.

Any amendment or waiver once effective shall bind every Securityholder
of each Series affected by such amendment or waiver unless it is of the type
described in any of clauses (a) through (g) of Section 9.3.  In that case, the amendment or waiver shall
bind each Holder of a 

 38
 

Security who has consented to it and every subsequent Holder of a
Security or portion of a Security that evidences the same debt as the
consenting Holder’s Security.

                Section 9.6.            Notation on or Exchange of
Securities.

The Trustee may place an appropriate notation about an amendment or
waiver on any Security of any Series thereafter authenticated.  The Company in exchange for Securities of
that Series may issue and the Trustee shall authenticate upon request new
Securities of that Series that reflect the amendment or waiver.

Section 9.7.            Trustee
Protected.

In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the modifications thereby
of the trusts created by this Indenture, the Trustee shall be entitled to
receive, and (subject to Section 7.1) shall be fully protected in relying upon,
an Opinion of Counsel stating that the execution of such supplemental indenture
is authorized or permitted by this Indenture. 
The Trustee shall sign all supplemental indentures, except that the
Trustee need not sign any supplemental indenture that adversely affects its
rights.

ARTICLE
X.

MISCELLANEOUS

Section 10.1.          Trust
Indenture Act Controls.

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

Section 10.2.          Notices.

Any notice or communication by the Company or the Trustee to the other
is duly given if in writing and delivered in person or mailed by first-class
mail:

if
to the Company:

Conceptus, Inc.
                                331 East Evelyn Avenue
                                Mountain View, CA 94041
                                Attention: President and Chief Executive
Officer

if
to the Trustee:

Wells Fargo Bank, National Association
                                Corporate Trust and Escrow Services
                                707 Wilshire Blvd, 17th Floor
                                Los Angeles, CA 90017
                                Attn: 
Maddy Hall
                                Facsimile: 
(213) 614-2588

 39
 

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

Any notice or communication to a Securityholder shall be mailed by
first-class mail to his address shown on the register kept by the Registrar
and, if any Bearer Securities are outstanding, published in an Authorized Newspaper.  Failure to mail a notice or communication to
a Securityholder of any Series or any defect in it shall not affect its
sufficiency with respect to other Securityholders of that or any other Series.

If a notice or communication is mailed or published in the manner
provided above, within the time prescribed, it is duly given, whether or not
the Securityholder receives it.

If the Company mails a notice or communication to Securityholders, it
shall mail a copy to the Trustee and each Agent at the same time.

Section 10.3.          Communication
by Holders with Other Holders.

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

Section 10.4.          Certificate
and Opinion as to Conditions Precedent.

Upon any request or application by the Company to the Trustee to take
any action under this Indenture, the Company shall furnish to the Trustee:

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

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

Section 10.5.          Statements
Required in Certificate or Opinion.

Each certificate or opinion with respect to compliance with a condition
or covenant provided for in this Indenture (other than a certificate provided
pursuant to TIA Section 314(a)(4)) shall comply with the provisions of TIA
Section 314(e) and shall include:

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

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

 40
 

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

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

Section 10.6.          Rules
by Trustee and Agents.

The Trustee may make reasonable rules for action by or a meeting of
Securityholders of one or more Series. 
Any Agent may make reasonable rules and set reasonable requirements for
its functions.

Section 10.7.          Legal
Holidays.

Unless otherwise provided by Board Resolution, Officers’ Certificate or
supplemental indenture for a particular Series, a “Legal Holiday” is any day
that is not a Business Day.  If a payment
date is a Legal Holiday at a place of payment, payment may be made at that
place on the next succeeding day that is not a Legal Holiday, and no interest
shall accrue for the intervening period.

Section 10.8.          No
Recourse Against Others.

A director, officer, employee or stockholder, as such, of the Company
shall not have any liability for any obligations of the Company under the
Securities or the Indenture or for any claim based on, in respect of or by reason
of such obligations or their creation. 
Each Securityholder by accepting a Security waives and releases all such
liability.  The waiver and release are
part of the consideration for the issue of the Securities.

Section 10.9.          Counterparts.

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

Section 10.10.        Governing Laws.

THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SUCH
STATE, WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS THEREOF.

Section 10.11.        No Adverse Interpretation of Other Agreements.

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

 

 41

Section 10.12.        Successors.

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

Section 10.13.        Severability.

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

Section 10.14.        Table of Contents, Headings, Etc.

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

Section 10.15.        Securities in a Foreign Currency or in ECU.

Unless otherwise specified in a Board Resolution, a supplemental
indenture hereto or an Officers’ Certificate delivered pursuant to Section 2.2
of this Indenture with respect to a particular Series of Securities, whenever
for purposes of this Indenture any action may be taken by the Holders of a
specified percentage in aggregate principal amount of Securities of all Series
or all Series affected by a particular action at the time outstanding and, at
such time, there are outstanding Securities of any Series which are denominated
in a coin or currency other than Dollars (including ECUs), then the principal
amount of Securities of such Series which shall be deemed to be outstanding for
the purpose of taking such action shall be that amount of Dollars that could be
obtained for such amount at the Market Exchange Rate at such time.  For purposes of this Section 10.15, “Market
Exchange Rate” shall mean the noon Dollar buying rate in New York City for
cable transfers of that currency as published by the Federal Reserve Bank of
New York; provided, however, in the case of ECUs, Market Exchange
Rate shall mean the rate of exchange determined by the Commission of the
European Union (or any successor thereto) as published in the Official Journal
of the European Union (such publication or any successor publication, the “Journal”).  If such Market Exchange Rate is not available
for any reason with respect to such currency, the Trustee shall use, in its sole
discretion and without liability on its part, such quotation of the Federal
Reserve Bank of New York or, in the case of ECUs, the rate of exchange as
published in the Journal, as of the most recent available date, or quotations
or, in the case of ECUs, rates of exchange from one or more major banks in The
City of New York or in the country of issue of the currency in question or, in
the case of ECUs, in Luxembourg or such other quotations or, in the case of
ECUs, rates of exchange as the Trustee, upon consultation with the Company,
shall deem appropriate.  The provisions
of this paragraph shall apply in determining the equivalent principal amount in
respect of Securities of a Series denominated in currency other than Dollars in
connection with any action taken by Holders of Securities pursuant to the terms
of this Indenture.

All decisions and determinations of the Trustee regarding the Market
Exchange Rate or any alternative determination provided for in the preceding
paragraph shall be in its sole 

 42
 

discretion and shall, in the absence of manifest error, be conclusive
to the extent permitted by law for all purposes and irrevocably binding upon
the Company and all Holders.

 

Section 10.16.        Judgment Currency.

The Company agrees, to the fullest extent that it may effectively do so
under applicable law, that (a) if for the purpose of obtaining judgment in any
court it is necessary to convert the sum due in respect of the principal of or
interest or other amount on the Securities of any Series (the “Required Currency”)
into a currency in which a judgment will be rendered (the “Judgment Currency”),
the rate of exchange used shall be the rate at which in accordance with normal
banking procedures the Trustee could purchase in The City of New York the
Required Currency with the Judgment Currency on the day on which final
unappealable judgment is entered, unless such day is not a New York Banking
Day, then, the rate of exchange used shall be the rate at which in accordance
with normal banking procedures the Trustee could purchase in The City of New
York the Required Currency with the Judgment Currency on the New York Banking
Day preceding the day on which final unappealable judgment is entered and (b)
its obligations under this Indenture to make payments in the Required Currency
(i) shall not be discharged or satisfied by any tender, any recovery pursuant
to any judgment (whether or not entered in accordance with subsection (a)), in
any currency other than the Required Currency, except to the extent that such
tender or recovery shall result in the actual receipt, by the payee, of the
full amount of the Required Currency expressed to be payable in respect of such
payments, (ii) shall be enforceable as an alternative or additional cause of
action for the purpose of recovering in the Required Currency the amount, if
any, by which such actual receipt shall fall short of the full amount of the
Required Currency so expressed to be payable, and (iii) shall not be affected
by judgment being obtained for any other sum due under this Indenture.  For purposes of the foregoing, “New York
Banking Day” means any day except a Saturday, Sunday or a legal holiday in The
City of New York on which banking institutions are authorized or required by
law, regulation or executive order to close.

ARTICLE
XI.

SINKING FUNDS

Section 11.1.          Applicability
of Article.

The provisions of this Article shall be applicable to any sinking fund
for the retirement of the Securities of a Series, except as otherwise permitted
or required by any form of Security of such Series issued pursuant to this
Indenture.

The minimum amount of any sinking fund payment provided for by the
terms of the Securities of any Series is herein referred to as a “mandatory
sinking fund payment” and any other amount provided for by the terms of
Securities of such Series is herein referred to as an “optional sinking fund
payment.”  If provided for by the terms
of Securities of any Series, the cash amount of any sinking fund payment may be
subject to reduction as provided in Section 11.2.  Each sinking fund payment shall be applied to
the redemption of Securities of any Series as provided for by the terms of the
Securities of such Series.

 43
 

Section 11.2.          Satisfaction
of Sinking Fund Payments with Securities.

The Company may, in satisfaction of all or any part of any sinking fund
payment with respect to the Securities of any Series to be made pursuant to the
terms of such Securities (1) deliver outstanding Securities of such Series to
which such sinking fund payment is applicable (other than any of such
Securities previously called for mandatory sinking fund redemption) and (2)
apply as credit Securities of such Series to which such sinking fund payment is
applicable and which have been redeemed either at the election of the Company
pursuant to the terms of such Series of Securities (except pursuant to any
mandatory sinking fund) or through the application of permitted optional
sinking fund payments or other optional redemptions pursuant to the terms of
such Securities, provided that such Securities have not been previously so
credited.  Such Securities shall be
received by the Trustee, together with an Officers’ Certificate with respect
thereto, not later than 15 days prior to the date on which the Trustee begins
the process of selecting Securities for redemption, and shall be credited for
such purpose by the Trustee at the price specified in such Securities for
redemption through operation of the sinking fund and the amount of such sinking
fund payment shall be reduced accordingly. 
If as a result of the delivery or credit of Securities in lieu of cash
payments pursuant to this Section 11.2, the principal amount of Securities of
such Series to be redeemed in order to exhaust the aforesaid cash payment shall
be less than $100,000, the Trustee need not call Securities of such Series for
redemption, except upon receipt of a Company Order that such action be taken,
and such cash payment shall be held by the Trustee or a Paying Agent and
applied to the next succeeding sinking fund payment, provided, however,
that the Trustee or such Paying Agent shall from time to time upon receipt of a
Company Order pay over and deliver to the Company any cash payment so being
held by the Trustee or such Paying Agent upon delivery by the Company to the
Trustee of Securities of that Series purchased by the Company having an unpaid
principal amount equal to the cash payment required to be released to the
Company.

Section 11.3.          Redemption
of Securities for Sinking Fund.

Not less than 45 days (unless otherwise indicated in the Board
Resolution, supplemental indenture hereto or Officers’ Certificate in respect
of a particular Series of Securities) prior to each sinking fund payment date
for any Series of Securities, the Company will deliver to the Trustee an
Officers’ Certificate specifying the amount of the next ensuing mandatory
sinking fund payment for that Series pursuant to the terms of that Series, the
portion thereof, if any, which is to be satisfied by payment of cash and the
portion thereof, if any, which is to be satisfied by delivering and crediting
of Securities of that Series pursuant to Section 11.2, and the optional amount,
if any, to be added in cash to the next ensuing mandatory sinking fund payment,
and the Company shall thereupon be obligated to pay the amount therein
specified.  Not less than 30 days (unless
otherwise indicated in the Board Resolution, Officers’ Certificate or
supplemental indenture in respect of a particular Series of Securities) before
each such sinking fund payment date the Trustee shall select the Securities to
be redeemed upon such sinking fund payment date in the manner specified in
Section 3.2 and cause notice of the redemption thereof to be given in the name
of and at the expense of the Company in the manner provided in Section 3.3.  Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner
stated in Sections 3.4, 3.5 and 3.6.

 44
 

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

	
   

  	
  CONCEPTUS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Gregory E.
  Lichwardt

  
	
   

  	
   

  	
  Name: Gregory E.
  Lichwardt

  
	
   

  	
   

  	
  Its: Executive
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  Wells Fargo
  Bank, National Association

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maddy Hall

  
	
   

  	
   

  	
  Name: Maddy Hall

  
	
   

  	
   

  	
  Its: Assistant
  Vice President

  

 

 45Exhibit 4.2

 

CONCEPTUS, INC.

and

WELLS FARGO BANK, NATIONAL ASSOCIATION.

as Trustee

SUPPLEMENTAL
INDENTURE NO. 1

Dated as of February 12, 2007

$75,000,000 Principal Amount

2.25% Convertible
Senior Notes due 2027

 

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  I.

  	
   

  	
  DEFINITIONS AND INCORPORATION BY REFERENCE

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.01 Definitions

  	
   

  	
  1

  
	
   

  	
   

  	
  1.02 Other Definitions

  	
   

  	
  5

  
	
   

  	
   

  	
  1.03 Incorporation by Reference of Trust Indenture
  Act

  	
   

  	
  6

  
	
   

  	
   

  	
  1.04 Rules of Construction

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II.

  	
   

  	
  THE SECURITIES

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2.01 Form and Dating

  	
   

  	
  7

  
	
   

  	
   

  	
  2.02 Execution and Authentication

  	
   

  	
  8

  
	
   

  	
   

  	
  2.03 Registrar, Paying Agent and Conversion Agent

  	
   

  	
  9

  
	
   

  	
   

  	
  2.04 Additional Securities

  	
   

  	
  9

  
	
   

  	
   

  	
  2.05 Replacement Securities

  	
   

  	
  9

  
	
   

  	
   

  	
  2.06 Outstanding Securities

  	
   

  	
  10

  
	
   

  	
   

  	
  2.07 Securities Held by the Company or an Affiliate

  	
   

  	
  10

  
	
   

  	
   

  	
  2.08 Cancellation

  	
   

  	
  11

  
	
   

  	
   

  	
  2.09 Deposit of Moneys

  	
   

  	
  11

  
	
   

  	
   

  	
  2.10 Book-Entry Provisions for And Restrictions on
  Transfer and Exchange of Global Securities

  	
   

  	
  11

  
	
   

  	
   

  	
  2.11 Ranking

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  III.

  	
   

  	
  REDEMPTION AND REPURCHASE

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.01 Right of Redemption

  	
   

  	
  13

  
	
   

  	
   

  	
  3.02 Notice to Trustee

  	
   

  	
  13

  
	
   

  	
   

  	
  3.03 Selection of Securities to Be Redeemed

  	
   

  	
  14

  
	
   

  	
   

  	
  3.04 Notice of Redemption

  	
   

  	
  14

  
	
   

  	
   

  	
  3.05 Effect of Notice of Redemption

  	
   

  	
  15

  
	
   

  	
   

  	
  3.06 Deposit of Redemption Price

  	
   

  	
  16

  
	
   

  	
   

  	
  3.07 Securities Redeemed in Part

  	
   

  	
  16

  
	
   

  	
   

  	
  3.08 Purchase of Securities at Option of the Holder

  	
   

  	
  16

  
	
   

  	
   

  	
  3.09 Repurchase at Option of Holder Upon a
  Fundamental Change

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IV.

  	
   

  	
  ADDITIONAL COVENANTS

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  4.01 Payment of Securities

  	
   

  	
  27

  
	
   

  	
   

  	
  4.02 Maintenance of Office or Agency

  	
   

  	
  27

  
	
   

  	
   

  	
  4.03 SEC Reports

  	
   

  	
  28

  
	
   

  	
   

  	
  4.04 Corporate Existence

  	
   

  	
  28

  
	
   

  	
   

  	
  4.05 Further Instruments and Acts

  	
   

  	
  29

  

 

 i
 

 

	
  V.

  	
   

  	
  SUCCESSORS

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  5.01 When Company May Merge, etc.

  	
   

  	
  29

  
	
   

  	
   

  	
  5.02 Successor Substituted

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VI.

  	
   

  	
  DEFAULTS AND REMEDIES

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6.01 Events of Default

  	
   

  	
  30

  
	
   

  	
   

  	
  6.02 Acceleration

  	
   

  	
  32

  
	
   

  	
   

  	
  6.03 Other Remedies

  	
   

  	
  32

  
	
   

  	
   

  	
  6.04 Waiver of Past Defaults

  	
   

  	
  32

  
	
   

  	
   

  	
  6.05 Control by Majority

  	
   

  	
  33

  
	
   

  	
   

  	
  6.06 Limitation on Suits

  	
   

  	
  33

  
	
   

  	
   

  	
  6.07 Rights of Holders to Receive Payment

  	
   

  	
  34

  
	
   

  	
   

  	
  6.08 Collection Suit by Trustee

  	
   

  	
  34

  
	
   

  	
   

  	
  6.09 Trustee May File Proofs of Claim

  	
   

  	
  34

  
	
   

  	
   

  	
  6.10 Priorities

  	
   

  	
  34

  
	
   

  	
   

  	
  6.11 Undertaking for Costs

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VII.

  	
   

  	
  NO DEFEASANCE OR COVENANT DEFEASANCE

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VIII.

  	
   

  	
  DISCHARGE OF INDENTURE

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8.01 Termination of the Obligations of the Company

  	
   

  	
  35

  
	
   

  	
   

  	
  8.02 Application of Trust Money

  	
   

  	
  36

  
	
   

  	
   

  	
  8.03 Repayment to Company

  	
   

  	
  36

  
	
   

  	
   

  	
  8.04 Reinstatement

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IX.

  	
   

  	
  AMENDMENTS

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  9.01 Without Consent of Holders

  	
   

  	
  37

  
	
   

  	
   

  	
  9.02 With Consent of Holders

  	
   

  	
  37

  
	
   

  	
   

  	
  9.03 Compliance with Trust Indenture Act

  	
   

  	
  38

  
	
   

  	
   

  	
  9.04 Revocation and Effect of Consents

  	
   

  	
  38

  
	
   

  	
   

  	
  9.05 Notation on or Exchange of Securities

  	
   

  	
  39

  
	
   

  	
   

  	
  9.06 Trustee Protected

  	
   

  	
  39

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  X.

  	
   

  	
  CONVERSION

  	
   

  	
  39

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  10.01 Conversion Privilege; Restrictive Legends

  	
   

  	
  39

  
	
   

  	
   

  	
  10.02 Conversion Procedure and Payment Upon
  Conversion.

  	
   

  	
  42

  
	
   

  	
   

  	
  10.03 Taxes on Conversion

  	
   

  	
  45

  
	
   

  	
   

  	
  10.04 Company to Provide Stock

  	
   

  	
  45

  
	
   

  	
   

  	
  10.05 Adjustment of Conversion Rate

  	
   

  	
  45

  
	
   

  	
   

  	
  10.06 No Adjustment

  	
   

  	
  50

  
	
   

  	
   

  	
  10.07 Other Adjustments

  	
   

  	
  51

  
	
   

  	
   

  	
  10.08 Adjustments for Tax Purposes

  	
   

  	
  51

  

 

 ii
 

 

	
  

  	
   

  	
  10.09 Notice of Adjustment

  	
   

  	
  51

  
	
   

  	
   

  	
  10.10 Notice of Certain Transactions

  	
   

  	
  52

  
	
   

  	
   

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

  	
   

  	
  52

  
	
   

  	
   

  	
  10.12 Trustee’s Disclaimer

  	
   

  	
  54

  
	
   

  	
   

  	
  10.13 Rights Distributions Pursuant to Stockholders’
  Rights Plans

  	
   

  	
  54

  
	
   

  	
   

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

  	
   

  	
  54

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  XI.

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  57

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  11.01 Trust Indenture Act Controls

  	
   

  	
  57

  
	
   

  	
   

  	
  11.02 Legal Holidays

  	
   

  	
  57

  
	
   

  	
   

  	
  11.03 Duplicate Originals

  	
   

  	
  57

  
	
   

  	
   

  	
  11.04 Governing Law

  	
   

  	
  58

  
	
   

  	
   

  	
  11.05 Calculations in Respect of the Securities

  	
   

  	
  58

  
	
   

  	
   

  	
  11.06 Notices

  	
   

  	
  58

  
	
   

  
	
  Exhibit A

  	
   

  	
   

  	
  -

  	
  Form of Global Security

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit B

  	
   

  	
   

  	
  -

  	
  Form of Legend for Global Security

  
									

 

 iii

SUPPLEMENTAL
INDENTURE NO. 1 (the “Supplemental Indenture”),
dated as of February 12, 2007, between Conceptus, Inc., a Delaware corporation
(the “Company”), and Wells Fargo Bank,
National Association, as trustee (the “Trustee”).

WITNESSETH THAT:

WHEREAS, the
Company and the Trustee have executed and delivered a base indenture, dated as
of February 12, 2007 (as amended, supplemented or otherwise modified from time
to time, the “Base Indenture,” and, together
with this Supplemental Indenture, as amended, supplemented or ot€herwise
modified from time to time, the “Indenture”) to
provide for the future issuance of the Company’s senior debt securities to be
issued from time to time in one or more series; and

WHEREAS, pursuant
to the terms of the Base Indenture, the Company desires to provide for the
establishment of a series of its Securities, to be titled as its 2.25%
Convertible Senior Notes due 2027 (the “Securities”),
the form and substance of such Securities and the terms, provisions and
conditions thereof to be set forth as provided in the Indenture;

NOW, THEREFORE:

Each party agrees
as follows for the benefit of the other party and for the equal and ratable
benefit of the Holders of the Company’s 2.25% Convertible Senior Notes due 2027
(the “Securities”).

I.                     DEFINITIONS
AND INCORPORATION BY REFERENCE

1.01              Definitions.

Capitalized
terms used herein without definition shall have the respective meanings
ascribed to them in the Base Indenture. 
The following definitions supplement, and, to the extent inconsistent
with, replace the definitions in Article I of the Base Indenture:

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

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

“Bid Solicitation Agent”means a
Company-appointed agent that performs calculations as set forth in Article X hereof and paragraph 10 of the Securities.

“Business Day” means a day other than a Legal Holiday.

 1
 

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

“Closing Sale Price” means the price of a share of Common
Stock on the relevant date, determined (a) on the basis of the closing sale
price per share of Common Stock (or if no closing sale price per share of
Common Stock is reported, the average of the bid and ask prices per share of
Common Stock or, if more than one in either case, the average of the average
bid and the average ask prices per share of Common Stock) on such date on the
U.S. principal national securities exchange on which the Common Stock is
listed; or (b) if the Common Stock is not listed on a U.S. national securities
exchange, as reported on the over-the-counter securities or other market on
which the Common Stock is listed.  In the
absence of a quotation, the Closing Sale Price shall be such price as the
Company shall reasonably determine on the basis of such quotations as most
accurately reflecting the price that a fully informed buyer, acting on his own
accord, would pay to a fully informed seller, acting on his own accord in an
arms-length transaction, for a share of such Common Stock.

“Common Stock” means the common stock, $0.003 par value per
share, of the Company, or such other Capital Stock of the Company into which
the Company’s common stock is reclassified or changed.

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

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

“Conversion Rate” shall initially be 35.8616 shares of Common
Stock per $1,000 principal amount of Securities, subject to adjustment as
provided in Article X.

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

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

“Hedge Counterparties” shall mean any Dealer or authorized
transferee of such Dealer that is a party with the Company to those certain
Convertible Bond Hedge Transactions dated February 6, 2007.  Initially the Hedge Counterparties shall be
UBS AG, London Bank and Societe Generale.

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

 2
 

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

“Issue Date” means February 12, 2007.

“Legal Holiday” means a Saturday, a Sunday or a day on which
banking institutions are not required to be open in the City of New York, in
the State of New York or in the city in which the Trustee administers its
corporate trust business.

“Make-Whole Fundamental Change” means an
Asset Sale Make-Whole Fundamental Change or a Common Stock Change
Make-Whole Fundamental Change that occurs before February 15, 2012.

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

“Maturity Date” means February 15, 2027.

“Option” means the
Underwriter’s option to acquire up to $11,250,000 aggregate principal amount of
additional Securities (“Additional Securities”)
as provided for in the Underwriting Agreement.

 3
 

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

“Redemption Price” means, with respect to a Security to be
redeemed by the Company in accordance with Article III,
one hundred percent (100%) of the outstanding principal amount of such Security
to be redeemed.

“Rights Agreement” means that certain Preferred Shares Rights
Agreement between the Company and Chase Mellon Shareholder Services, L.L.C.,
dated February 27, 1997, as the same may be amended, supplemented or
superseded.

“SEC” means the Securities and Exchange Commission.

“Securities” means the 2.25% Convertible Senior Notes due
2027 established by this Supplemental Indenture and issued by the Company
pursuant to the Indenture.

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

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

“Significant Subsidiary” with respect to any person means any
subsidiary of such person that constitutes a “significant subsidiary” within
the meaning of Rule 1-02(w) of Regulation S-X under the Securities Act, as such
regulation is in effect on the date of this Supplemental Indenture.

“Trading Day” means any day during which all of the following
conditions are satisfied: (i) trading in the Common Stock generally occurs;
(ii) there is no Market Disruption Event; and (iii) a closing sale price for
the Common Stock is provided on the NASDAQ Global Market or, if the Common
Stock is not then listed on the NASDAQ Global Market, on the principal other
U.S. national or regional securities exchange on which the Common Stock is then
listed or, if the Common Stock is not listed on a U.S. national or regional
securities exchange, on the principal over-the-counter securities market or
other market on which the Common Stock is then traded.

“Trading Price” means, on any date, the average of the
secondary market bid quotations for the Securities obtained by the Bid
Solicitation Agent on behalf of the Trustee for five million dollars ($5,000,000)
principal amount of Securities at approximately 4:00 p.m., New York City time,
on such date, from three (3) independent, nationally recognized securities
dealers selected by the Company; provided, that
if the Bid Solicitation Agent on behalf of the Trustee can reasonably obtain
only two (2) such bids, then the average of such two (2) bids shall instead be
used; provided further, that if the Bid
Solicitation Agent on behalf of the Trustee can reasonably obtain only one (1)
such bid, then such bid shall instead be used; provided
further, that if, on a given date, the Bid Solicitation Agent on
behalf of the Trustee cannot reasonably obtain at least one (1) such bid, or
if, in the reasonable, good faith judgment of the Board of Directors, which
judgment shall be described in a Board
Resolution, the bid quotation or quotations so obtained by the Bid
Solicitation Agent on behalf of the Trustee are not indicative of the secondary
market

 4
 

value
of the Securities, then, in each case, the Trading Price per $1,000 principal
amount of Securities on such date shall be deemed to be equal to the product of
(I) the Conversion Rate in effect on such date and (II) 97% of the Closing Sale
Price on such date.

“Underwriter” means UBS Securities LLC.

“Underwriting Agreement” means the Underwriting Agreement
dated February 6, 2007 between the Company and the Underwriter.

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

1.02              OTHER
DEFINITIONS.

	
  Term

  	
   

  	
  Defined in Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  “Acquisition of Voting Control”

  	
   

  	
  3.09

  	
   

  
	
  “Additional Securities”

  	
   

  	
  1.01

  	
   

  
	
  “Aggregate Amount”

  	
   

  	
  10.05

  	
   

  
	
  “Applicable Price”

  	
   

  	
  10.14

  	
   

  
	
  “Bankruptcy Law”

  	
   

  	
  6.01

  	
   

  
	
  “BCF Adjustment Cap”

  	
   

  	
  10.06

  	
   

  
	
  “BCF Make-Whole Cap”

  	
   

  	
  10.14

  	
   

  
	
  “Cash Settlement
  Averaging Period”

  	
   

  	
  10.02

  	
   

  
	
  “Change in Control”

  	
   

  	
  3.09

  	
   

  
	
  “Collective Election”

  	
   

  	
  10.11

  	
   

  
	
  “Conversion Agent”

  	
   

  	
  2.03

  	
   

  
	
  “Conversion Date”

  	
   

  	
  10.02

  	
   

  
	
  “Conversion Value”

  	
   

  	
  10.01

  	
   

  
	
  “Custodian”

  	
   

  	
  6.01

  	
   

  
	
  “Daily Conversion Value”

  	
   

  	
  10.02

  	
   

  
	
  “Daily Net Shares”

  	
   

  	
  10.02

  	
   

  
	
  “Daily Principal Return”

  	
   

  	
  10.02

  	
   

  
	
  “Effective Date”

  	
   

  	
  10.14

  	
   

  
	
  “Event of Default”

  	
   

  	
  6.01

  	
   

  
	
  “Ex Date”

  	
   

  	
  10.05

  	
   

  
	
  “Expiration Date”

  	
   

  	
  10.05

  	
   

  
	
  “Expiration Time”

  	
   

  	
  10.05

  	
   

  
	
  “Extension Period”

  	
   

  	
  10.01

  	
   

  
	
  “Fundamental Change”

  	
   

  	
  3.09

  	
   

  
	
  “Fundamental Change Notice”

  	
   

  	
  3.09

  	
   

  
	
  “Fundamental Change Repurchase Date”

  	
   

  	
  3.09

  	
   

  
	
  “Fundamental Change Repurchase Price”

  	
   

  	
  3.09

  	
   

  
	
  “Fundamental Change Repurchase Right”

  	
   

  	
  3.09

  	
   

  
	
  “Global Security”

  	
   

  	
  2.01

  	
   

  
	
  “Legal Holiday”

  	
   

  	
  11.02

  	
   

  
	
  “Listed Stock Business Combination”

  	
   

  	
  3.09

  	
   

  

 

 5
 

 

	
  “Make-Whole Applicable Increase”

  	
   

  	
  10.14

  	
   

  
	
  “Make-Whole Conversion Period”

  	
   

  	
  10.14

  	
   

  
	
  “Make-Whole Consideration”

  	
   

  	
  10.14

  	
   

  
	
  “Net Shares”

  	
   

  	
  10.02

  	
   

  
	
  “Notice of Default”

  	
   

  	
  6.01

  	
   

  
	
  “Note Measurement Period”

  	
   

  	
  10.01

  	
   

  
	
  “Option Purchase Date”

  	
   

  	
  3.08

  	
   

  
	
  “Option Purchase Notice”

  	
   

  	
  3.08

  	
   

  
	
  “Option Purchase Price”

  	
   

  	
  3.08

  	
   

  
	
  “Participants”

  	
   

  	
  2.10

  	
   

  
	
  “Paying Agent”

  	
   

  	
  2.03

  	
   

  
	
  “Physical Securities”

  	
   

  	
  2.01

  	
   

  
	
  “Principal Return”

  	
   

  	
  10.02

  	
   

  
	
  “Purchase at Holder’s Option”

  	
   

  	
  3.01

  	
   

  
	
  “Purchase Notice”

  	
   

  	
  3.08

  	
   

  
	
  “Purchased Shares”

  	
   

  	
  10.05

  	
   

  
	
  “Redemption”

  	
   

  	
  3.01

  	
   

  
	
  “Reference Property”

  	
   

  	
  10.11

  	
   

  
	
  “Registrar”

  	
   

  	
  2.03

  	
   

  
	
  “Repurchased Shares”

  	
   

  	
  3.09

  	
   

  
	
  “Repurchase Upon Fundamental Change”

  	
   

  	
  3.01

  	
   

  
	
  “Rights”

  	
   

  	
  10.05

  	
   

  
	
  “Termination of Trading”

  	
   

  	
  3.09

  	
   

  
	
  “Trading Price Condition”

  	
   

  	
  10.01

  	
   

  
	
  “Underlying Shares”

  	
   

  	
  10.05

  	
   

  
	
  “Volume-Weighted Average Price”

  	
   

  	
  10.02

  	
   

  

 

1.03              INCORPORATION
BY REFERENCE OF TRUST INDENTURE ACT.

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

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

“Commission”
means the SEC;

“indenture
securities” means the Securities;

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

“indenture to
be qualified” means this Indenture;

“indenture
trustee” or “institutional trustee”
means the Trustee; and

“obligor” on the indenture securities means the Company or
any successor.

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

 6
 

1.04              RULES
OF CONSTRUCTION.

Unless the context
otherwise requires:

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

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

(iii)           “or” is not exclusive;

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

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

(vi)          provisions apply to
successive events and transactions;

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

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

II.                   THE
SECURITIES

2.01              FORM
AND DATING.

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

Securities shall
be issued initially in the form of one or more Global Securities, substantially
in the form set forth in Exhibit A (the “Global Security”),
deposited with the Trustee, as custodian for DTC, duly executed by the Company
and authenticated by the Trustee as hereinafter provided and bearing the legend
set forth in Exhibit B
(instead of the legend provided in Section 2.14.3 of the Base Indenture).  The aggregate principal amount of the Global
Security may from time to time be increased or decreased by adjustments made on
the records of the Trustee, as custodian for DTC, as hereinafter provided; provided, that, except as permitted by Section 2.04,
in no event shall the aggregate principal amount of the Global Security or
Securities exceed $75,000,000 (or $86,250,000 if the Underwriter elects to
purchase all of the Additional Securities pursuant to the Option).

 7
 

Securities issued
in exchange for interests in a Global Security pursuant to Section
2.10 may be issued in the form of
permanent certificated Securities in registered form in substantially the form
set forth in Exhibit A
(the “Physical Securities”).

The Securities
shall be denominated in Dollars, and all cash payments due thereon shall be
made in Dollars.

2.02              EXECUTION
AND AUTHENTICATION.

Two duly
authorized Officers shall sign the Securities for the Company by manual or
facsimile signature.

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

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

Upon a written
order of the Company signed by one Officer of the Company, the Trustee shall
authenticate Securities for original issue in the aggregate principal amount of
$75,000,000 and such additional principal amount, if any, as shall be
determined pursuant to the next sentence of this Section
2.02. 
Upon receipt by the Trustee of an Officers’ Certificate stating that the
Underwriter has elected to purchase from the Company a specified principal
amount of Additional Securities, not to exceed $11,250,000, pursuant to the
Option, the Trustee shall authenticate and deliver such specified principal
amount of Additional Securities to or upon the written order of the Company
signed as provided in the immediately preceding sentence.  Such Officers’ Certificate must be received
by the Trustee not later than the proposed date for delivering of such
Additional Securities.  The aggregate
principal amount of Securities outstanding at any time may not exceed
$75,000,000 except as provided in this Section 2.02 or in Section 2.04.

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

If a written order
of the Company pursuant to this Section 2.02
has been, or simultaneously is, delivered, any instructions by the Company to
the Trustee with respect to endorsement, delivery or redelivery of a Security
issued in global form shall be in writing but need not comply with Section 10.4
of the Base Indenture and need not be accompanied by an Opinion of Counsel.

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

 8
 

2.03              REGISTRAR,
PAYING AGENT AND CONVERSION AGENT.

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

The Company shall
enter into an appropriate agency agreement with any Securities Agent not a
party to this Indenture.  The agreement
shall implement the provisions of this Indenture that relate to such Securities
Agent.  The Company shall notify the
Trustee of the name and address of any Securities Agent not a party to this
Indenture.  If the Company fails to
maintain a Registrar, Paying Agent or Conversion Agent, the Trustee shall act
as such.

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

2.04              ADDITIONAL SECURITIES.

The Company
may, without the consent of the Holders and notwithstanding Sections 2.01 and 2.02 hereof, reopen the Securities and
issue additional Securities hereunder with the same terms and conditions
(except for any difference in the issue price therefor and interest accrued
prior to the date of issuance thereof) and with the same CUSIP number as the
Securities initially issued hereunder in an unlimited aggregate principal
amount, which will form the same series with the Securities initially issued
hereunder, provided that such additional Securities constitute the same issue
as the Securities initially issued hereunder for U.S. federal income tax
purposes.  The Securities initially
issued hereunder and any such additional Securities would rank equally and
ratably and would be treated as a single series of debt securities for all purposes
under the Indenture.

2.05              REPLACEMENT
SECURITIES.

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

 9
 

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

Every replacement
Security is an additional obligation of the Company only as provided in Section 2.06.

2.06              OUTSTANDING
SECURITIES.

Securities
outstanding at any time are all the Securities authenticated by the Trustee
except for those converted, those cancelled by it, those delivered to it for
cancellation and those described in this Section 2.06 as not outstanding. 
Except to the extent provided in Section 2.07, a
Security does not cease to be outstanding because the Company or one of its
then-existing Subsidiaries or Affiliates holds the Security.

If a Security is
replaced pursuant to Section 2.05, it ceases to be outstanding unless the Trustee
receives proof satisfactory to it, or a court holds, that the replaced Security
is held by a protected purchaser.

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

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

2.07              SECURITIES
HELD BY THE COMPANY OR AN AFFILIATE.

In determining
whether the Holders of the required aggregate principal amount of Securities
have concurred in any direction, waiver or consent, Securities owned by the
Company or any of its then-existing Subsidiaries or Affiliates shall be
considered as though not

 10
 

outstanding,
except that, for the purposes of determining whether a Responsible Officer of
the Trustee shall be protected in relying on any such direction, waiver or
consent, only Securities which the Trustee knows are so owned shall be so disregarded.  Securities so owned which have been pledged
in good faith may be considered to be outstanding for purposes of this Section 2.07 if the pledgee establishes, to the satisfaction
of the Trustee, the pledgee’s right so to concur with respect to such
Securities and that the pledgee is not, and is not acting at the direction or
on behalf of, the Company, any other obligor on the Securities, an Affiliate of
the Company or an affiliate of any such other obligor.  In the event of a dispute as to whether the
pledgee has established the foregoing, the Trustee may rely on the advice of
counsel or on an Officers’ Certificate.

2.08              CANCELLATION.

The Company at any
time may deliver Securities to the Trustee for cancellation.  The Registrar, Paying Agent and Conversion
Agent shall forward to the Trustee any Securities surrendered to them for
transfer, exchange, payment or conversion. 
The Trustee shall promptly cancel all Securities surrendered for
transfer, exchange, payment, conversion or cancellation in accordance with its
customary procedures.  The Company may
not issue new Securities to replace Securities that it has paid or delivered to
the Trustee for cancellation or that any Securityholder has converted pursuant
to Article X.

2.09              DEPOSIT
OF MONEYS.

Prior to 10:00
a.m., New York City time, on each interest payment date, Maturity Date,
Redemption Date, Option Purchase Date or Fundamental Change Repurchase Date,
the Company shall have deposited with a Paying Agent (or, if the Company is
acting as its own Paying Agent, segregate and hold in trust in accordance with
Section 2.5 of the Base Indenture) money, in funds immediately available on
such date, sufficient to make cash payments, if any, due on such interest
payment date, Maturity Date, Redemption Date, Option Purchase Date or
Fundamental Change Repurchase Date, as the case may be, in a timely manner
which permits the Paying Agent to remit payment to the Holders on such interest
payment date, Maturity Date, Redemption Date, Option Purchase Date or Fundamental
Change Repurchase Date, as the case may be.

2.10              BOOK-ENTRY PROVISIONS FOR AND RESTRICTIONS ON TRANSFER
AND EXCHANGE OF GLOBAL SECURITIES.

(A)               The Global
Securities initially shall (i) be registered in the name of DTC or the nominee
of DTC, (ii) be delivered to the Trustee as custodian for DTC and (iii) bear
legends as required hereby.

Members of, or
participants in, DTC (“Participants”)
shall have no rights under this Indenture with respect to any Global Security
held on their behalf by DTC, or the Trustee as its custodian, or under the
Global Security, and DTC may be treated by the Company, the Trustee and any
agent of the Company or the Trustee as the absolute owner of the Global Security
for all purposes whatsoever. 
Notwithstanding the foregoing, nothing herein shall prevent the Company,
the Trustee or any agent of the Company or the Trustee from giving effect to
any written

 11
 

certification,
proxy or other authorization furnished by DTC or impair, as between DTC and
Participants, the operation of customary practices governing the exercise of
the rights of a Holder of any Security.

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

(C)                In connection with
the transfer of a Global Security in its entirety to beneficial owners pursuant
to Section 2.10(B), such Global Security shall be
deemed to be surrendered to the Trustee for cancellation, and the Company shall
execute, and the Trustee shall upon written instructions from the Company
authenticate and deliver, to each beneficial owner identified by DTC in
exchange for its beneficial interest in such Global Security, an equal aggregate
principal amount of Physical Securities of authorized denominations.

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

(E)                 Notwithstanding
any other provisions of this Indenture, but except as provided in Section 2.10(B), a Global Security may not
be transferred except as a whole by DTC to a nominee of DTC or by a nominee of
DTC to DTC or another nominee of DTC or by DTC or any such nominee to a
successor Depositary or a nominee of such successor Depositary.

2.11                         RANKING.

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

III.                 REDEMPTION AND REPURCHASE

Pursuant to
Sections 2.2.7 and 2.29 of the Base Indenture, the Securities shall be subject
to Redemption, Repurchase Upon Fundamental Change and Purchase at Holder’s
Option in accordance with this Article III and
this Article III shall supplement, and, to
the extent inconsistent with, replace the Article III of the Base Indenture.

 12
 

3.01              RIGHT
OF REDEMPTION.

(A)               Redemption of the
Securities, as permitted by any provision of this Indenture, shall be made:

(i)          with respect to a repurchase at the Company’s
option, in accordance with paragraphs 6 and 7
of the Securities (a “Redemption”),

(ii)        with respect to a repurchase at the Holder’s
option, in accordance with paragraph 8
of the Securities (a “Purchase at Holder’s
Option”) and

(iii)       with respect to any repurchase upon a
Fundamental Change, in accordance with paragraph
9 of the Securities (a “Repurchase
Upon Fundamental Change”),

in
each case in accordance with the applicable provisions of this Article III.

(B)                The Company will
comply with all federal and state securities laws, and the applicable laws of
any foreign jurisdiction, in connection with any offer to sell or solicitations
of offers to buy Securities pursuant to this Article
III.

(C)                The Company shall
not have the right to redeem any Securities prior to February 15, 2012.  The Company shall have the right, at the
Company’s option, at any time, and from time to time, on a Redemption Date on
or after February 15, 2012, to redeem all or any part of the Securities at a
price payable in cash equal to the Redemption Price plus accrued and unpaid
interest, if any, to, but excluding, the Redemption Date; provided,
however, that in no event shall any
Redemption Date be a Legal Holiday; provided further,
that if the Redemption Date with respect to a Security is after a record date
for the payment of an installment of interest and on or before the related interest
payment date, then accrued and unpaid interest to, but excluding, such interest
payment date shall be paid, on such interest payment date, to the Holder of
record of such Security at the close of business on such record date, and the
Holder surrendering such Security for Redemption shall not be entitled to any
such interest unless such Holder was also the Holder of record of such Security
at the close of business on such record date.

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

3.02              NOTICE
TO TRUSTEE.

If the Company
elects to redeem Securities pursuant to paragraph 6 of
the Securities, it shall notify the Trustee of the Redemption Date, the applicable
provision of this Indenture pursuant to which the Redemption is to be made and
the aggregate principal amount of Securities to be redeemed, which notice shall
be provided to the Trustee by the Company at least fifteen (15) days prior to
the mailing, in accordance with Section 3.04,
of the notice of Redemption (unless a shorter notice period shall be
satisfactory to the Trustee).

 13
 

3.03              SELECTION
OF SECURITIES TO BE REDEEMED.

If the Company has
elected to redeem less than all the Securities pursuant to paragraph 6
of the Securities, the Trustee shall, within five (5) Business Days after
receiving the notice specified in Section 3.02,
select the Securities to be redeemed by lot, on a pro rata
basis or in accordance with any other method the Trustee considers fair and
appropriate.  The Trustee shall make such
selection from Securities then outstanding and not already to be redeemed by
virtue of having been previously called for Redemption.  The Trustee may select for Redemption
portions of the principal amount of Securities that have denominations larger
than $1,000 principal amount.  Securities
and portions of them the Trustee selects for Redemption shall be in amounts of
$1,000 principal amount or integral multiples of $1,000 principal amount.  The Trustee shall promptly notify the Company
in writing of the Securities selected for Redemption and the principal amount
thereof to be redeemed.

The Registrar need
not register the transfer of or exchange any Securities that have been selected
for Redemption, except the unredeemed portion of the Securities being redeemed
in part.

3.04              Notice of Redemption.

At least thirty
(30) days but not more than sixty (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 Securities are to be redeemed, at the address
of such Holder appearing in the security register.

The notice shall
identify the Securities and the aggregate principal amount thereof to be
redeemed pursuant to the Redemption and shall state:

(i)              the Redemption Date;

(ii)            the Redemption Price
plus accrued and unpaid interest, if any, to, but excluding, the Redemption
Date;

(iii)           the Conversion Rate and
the Conversion Price;

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

(v)            that the right to
convert the Securities called for Redemption will terminate at the close of
business on the Business Day immediately preceding the Redemption Date, unless
there shall be a Default in the payment of the Redemption Price or accrued and
unpaid interest, if any, payable as herein provided upon Redemption;

(vi)          that Holders who want to
convert Securities must satisfy the requirements of Article X;

 14
 

(vii)         the paragraph of the
Securities pursuant to which the Securities are to be redeemed;

(viii)   that Securities called for Redemption must be
surrendered to the Paying Agent to collect the Redemption Price plus accrued
and unpaid interest, if any, payable as herein provided upon Redemption;

(ix)           that, unless there
shall be a Default in the payment of the Redemption Price or accrued and unpaid
interest, if any, payable as herein provided upon Redemption (including, where
the Redemption Date is after a record date for the payment of an installment of
interest and on or before the related interest payment date, the payment, on
such interest payment date, of accrued and unpaid interest to, but excluding,
such interest payment date to the Holder of record at the close of business on
such record date), interest on Securities called for Redemption ceases to
accrue on and after the Redemption Date, except as otherwise provided herein,
such Securities will cease to be convertible after the close of business on the
Business Day immediately preceding the Redemption Date, and all rights of the
Holders of such Securities shall terminate on and after the Redemption Date,
other than the right to receive, upon surrender of such Securities and in
accordance with this Indenture, the amounts due hereunder on such Securities
upon Redemption (and the rights of the Holder(s) of record of such Securities
to receive, on the applicable interest payment date, accrued and unpaid
interest in accordance herewith in the event the Redemption Date is after a
record date for the payment of an installment of interest and on or before the
related interest payment date); and

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

At the Company’s
request, upon reasonable prior notice, the Trustee shall mail the notice of
Redemption in the Company’s name and at the Company’s expense; provided, however, that
the form and content of such notice shall be prepared by the Company.

3.05              Effect of Notice of Redemption.

Once notice of
Redemption is mailed, Securities called for Redemption become due and payable
on the Redemption Date at the consideration set forth herein, and, on and after
such Redemption Date (unless there shall be a Default in the payment of such
consideration), except as otherwise provided herein, such Securities shall
cease to bear interest, and all rights of the Holders of such Securities shall
terminate, other than the right to receive such consideration upon surrender of
such Securities to the Paying Agent.

The right,
pursuant to Article X, to convert Securities
called for Redemption shall terminate at the close of business on the Business
Day immediately preceding the Redemption Date, unless there shall be a Default
in the payment of the Redemption Price or accrued and unpaid interest, if any,
payable as herein provided upon Redemption.

If any Security
shall not be fully and duly paid in accordance herewith upon Redemption, the
principal of, and accrued and unpaid interest on, such Security shall, until
paid, bear interest

 15
 

at the
rate borne by such Security on the principal amount of such Security, and such
Security shall continue to be convertible pursuant to Article X.

Notwithstanding
anything herein to the contrary, there shall be no purchase of any Securities
pursuant to a Redemption if the principal amount of the Securities has been accelerated
pursuant to Section 6.02 and such acceleration
shall not have been rescinded on or before the applicable Redemption Date.  The Paying Agent will promptly return to the
respective Holders thereof any Securities tendered to it for Redemption during
the continuance of such an acceleration.

3.06              Deposit of Redemption Price.

Prior to 10:00
a.m., New York City time on the Redemption Date, the Company shall deposit with
a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate
and hold in trust in accordance with Section 2.5 of the Base Indenture) money,
in funds immediately available on the Redemption Date, sufficient to pay the
consideration payable as herein provided upon Redemption on all Securities to
be redeemed on that date.  The Paying
Agent shall return to the Company, as soon as practicable, any money not
required for that purpose.

3.07              Securities Redeemed in Part.

Any Security to be
submitted for Redemption only in part shall be delivered pursuant to Section 3.05 (with, if
the Company or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Trustee duly
executed by, the Holder thereof or its attorney duly authorized in writing),
and the Company shall execute, and the Trustee shall authenticate and make
available for delivery to the Holder of such Security without service charge, a
new Security or Securities, of any authorized denomination as requested by such
Holder, of the same tenor and in aggregate principal amount equal to the
portion of such Security not submitted for Redemption.

If any Security
selected for partial Redemption is converted in part, the principal of such
Security subject to Redemption shall be reduced by the principal amount of such
Security that is converted.

3.08              Purchase of Securities at Option of the Holder.

(A)               At the option of
the Holder thereof, Securities (or portions thereof that are integral multiples
of $1,000 in principal amount) shall be purchased by the Company pursuant to paragraph 8 of the Securities on February
15, 2012, February 15, 2017 and February 15, 2022 (each, an “Option Purchase Date”), at a purchase
price, payable in cash, equal to one hundred percent (100%) of the principal
amount of the Securities (or such portions thereof) to be so purchased (the “Option Purchase Price”), plus accrued and
unpaid interest, if any, to, but excluding, the applicable Option Purchase Date
(provided, that such accrued and unpaid
interest shall be paid to the Holder of record of such Securities at the close
of business on the record date immediately preceding such Option Purchase
Date), upon:

 16

(i)          delivery to the Company (if it is acting as
its own Paying Agent), or to a Paying Agent designated by the Company for such
purpose in the Option Purchase Notice, by such Holder, at any time from the
opening of business on the date that is twenty (20) Business Days prior to the
applicable Option Purchase Date until the close of business on the Business Day
immediately preceding the applicable Option Purchase Date, of a purchase
notice, in the form set forth in the Securities or any other form of written notice
substantially similar thereto, in each case, duly completed and signed, with
appropriate signature guarantee (a “Purchase
Notice”), stating:

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

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

(c)                 that
such principal amount of Securities are to be purchased as of the applicable
Option Purchase Date pursuant to the terms and conditions specified in paragraph 8 of the Securities and in this Indenture; and

(ii)        delivery to the Company (if it is acting as its
own Paying Agent), or to a Paying Agent designated by the Company for such
purpose in the Option Purchase Notice, at any time after delivery of such
Purchase Notice, of such Securities (together with all necessary endorsements),
such delivery being a condition to receipt by the Holder of the Option Purchase
Price therefor plus accrued and unpaid interest, if any, payable as herein
provided upon Purchase at Holder’s Option (provided, however, that the Holder of record of such Securities on the
record date immediately preceding such Option Purchase Date need not surrender
such Securities in order to be entitled to receive, on the Option Purchase
Date, the accrued and unpaid interest due thereon).

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

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

Notwithstanding anything
herein to the contrary, any Holder that has delivered the Purchase Notice
contemplated by this Section 3.08(A) to
the Company (if it is acting as its own Paying Agent) or to a Paying Agent
designated by the Company for such purpose in the Option Purchase Notice shall
have the right to withdraw such Purchase Notice by delivery, at any time prior
to the close of business on the Business Day immediately preceding the
applicable Option Purchase Date, of a written notice of withdrawal to the
Company (if acting as its own Paying Agent) or the Paying Agent, which notice
shall contain the information specified in Section 3.08(B)(vii).

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

 17
 

(B)                The Company shall
give notice (the “Option Purchase Notice”)
on a date not less than twenty (20) Business Days prior to each Option Purchase
Date to each Holder at its address shown in the register of the Registrar and
to each beneficial owner as required by applicable law.  Such notice shall state:

(i)          the Option Purchase Price plus accrued and
unpaid interest, if any, to, but excluding, such Option Purchase Date and the
Conversion Rate;

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

(iii)       that Securities with respect to which a Purchase
Notice is given by a Holder may be converted pursuant to Article X, if otherwise convertible in
accordance with Article X, only if
such Purchase Notice has been withdrawn in accordance with this Section 3.08 or if there shall be a Default
in the payment of such Option Purchase Price or in accrued and unpaid interest,
if any, payable as herein provided upon Purchase at Holder’s Option;

(iv)      that Securities must be surrendered to the Paying
Agent to collect payment of the Option Purchase Price plus (if such Holder was
the Holder of record of the applicable Security at the close of business on the
record date immediately preceding the Option Purchase Date) accrued and unpaid
interest, if any, payable as herein provided upon Purchase at Holder’s Option;

(v)        that the Option Purchase Price, plus accrued
and unpaid interest, if any, to, but excluding, such Option Purchase Date, for
any Security as to which a Purchase Notice has been given and not withdrawn
will be paid as promptly as practicable, but in no event later than the later
of such Option Purchase Date or the time of delivery of the Security as
described in clause (iv) above; provided, however, that
such accrued and unpaid interest shall be paid, on the applicable interest
payment date, to the Holder of record of such Security at the close of business
on the record date immediately preceding such Option Purchase Date;

(vi)      the procedures the Holder must follow to exercise
rights under this Section 3.08
(including the name and address of the Paying Agent) and a brief description of
those rights;

(vii)     that a Holder will be entitled to withdraw its
election in the Purchase Notice if the Company (if acting as its own Paying
Agent) or the Paying Agent receives, at any time prior to the close of business
on the Business Day immediately preceding the applicable Option Purchase Date,
or such longer period as may be required by law, a letter or telegram, telex or
facsimile transmission (receipt of which is confirmed and promptly followed by
a letter) setting forth (I) the name of such Holder, (II) a statement that such
Holder is withdrawing its election to have Securities purchased by the Company
on such Option Purchase Date pursuant to a Purchase at Holder’s Option, (III)
the certificate number(s) of such Securities to be so withdrawn, if such
Securities are in certificated form, (IV) the principal amount of the
Securities

 18
 

of such Holder to be so withdrawn, which
amount must be $1,000 or an integral multiple thereof and (V) the principal
amount, if any, of the Securities of such Holder that remain subject to the
Purchase Notice delivered by such Holder in accordance with this Section 3.08, which amount must be $1,000
or an integral multiple thereof;

(viii)   that, except as otherwise provided herein, on and
after the applicable Option Purchase Date (unless there shall be a Default in
the payment of the consideration payable as herein provided upon a Purchase at
Holder’s Option), interest on Securities subject to Purchase at Holder’s Option
will cease to accrue, and all rights of the Holders of such Securities shall
terminate, other than the right to receive, in accordance herewith, the
consideration payable as herein provided upon a Purchase at Holder’s Option;
and

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

At the Company’s
request, upon reasonable prior notice, the Trustee shall mail such Option
Purchase Notice in the Company’s name and at the Company’s expense; provided, however, that the form and content of such Option
Purchase Notice shall be prepared by the Company.

No failure of the
Company to give an Option Purchase Notice shall limit any Holder’s right to
exercise its rights to require the Company to purchase such Holder’s Securities
pursuant to a Purchase at Holder’s Option.

(C)                Subject to the
provisions of this Section 3.08,
the Company shall pay, or cause to be paid, the Option Purchase Price, plus
accrued and unpaid interest, if any, to, but excluding, the applicable Option
Purchase Date, with respect to each Security subject to Purchase at Holder’s
Option to the Holder thereof as promptly as practicable, but in no event later
than the later of the applicable Option Purchase Date and the time such
Security (together with all necessary endorsements) is surrendered to the
Paying Agent; provided, however,
that such accrued and unpaid interest shall be paid, on the applicable interest
payment date, to the Holder of record of such Security at the close of business
on the record date immediately preceding such Option Purchase Date.

(D)                Prior to 10:00
a.m., New York City time on the applicable Option Purchase Date, the Company
shall deposit with a Paying Agent (or, if the Company is acting as its own
Paying Agent, segregate and hold in trust in accordance with Section 2.5 of the
Base Indenture) money, in funds immediately available on the applicable Option
Purchase Date, sufficient to pay the Option Purchase Price, plus accrued and
unpaid interest, if any, to, but excluding, such Option Purchase Date, of all
of the Securities that are to be purchased by the Company on such Option
Purchase Date pursuant to a Purchase at Holder’s Option.  The Paying Agent shall return to the Company,
as soon as practicable, any money not required for that purpose.

(E)                 Once the Purchase
Notice has been duly delivered in accordance with this Section 3.08,
the Securities to be purchased pursuant to the Purchase at Holder’s Option
shall, on the applicable Option Purchase Date, become due and payable in
accordance herewith, and, on and after such date (unless there shall be a
Default in the payment of the consideration payable as

 19
 

herein provided upon a Purchase at Holder’s
Option), except as otherwise herein provided, such Securities shall cease to
bear interest, and all rights of the Holders of such Securities shall
terminate, other than the right to receive, in accordance herewith, the such
consideration.

(F)                 Securities with
respect to which a Purchase Notice has been duly delivered in accordance with
this Section 3.08 may be converted pursuant to Article X, if otherwise convertible in
accordance with Article X, only if
such Purchase Notice has been withdrawn in accordance with this Section 3.08 or if there shall be a Default
in the payment of the consideration payable as herein provided upon a Purchase
at Holder’s Option.

(G)                If any Security
subject to Purchase at Holder’s Option shall not be paid in accordance
herewith, the principal of, and accrued and unpaid interest on, such Security
shall, until paid, bear interest, payable in cash, at the rate borne by such
Security on the principal amount of such Security, and such Security shall
continue to be convertible pursuant to Article
X.

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

(I)                  Notwithstanding
anything herein to the contrary, there shall be no purchase of any Securities
pursuant to this Section 3.08 if
the principal amount of the Securities has been accelerated pursuant to Section 6.02 and such acceleration shall
not have been rescinded on or before the applicable Option Purchase Date.  The Paying Agent will promptly return to the
respective Holders thereof any Securities tendered to it for Purchase at Holder’s
Option during the continuance of such an acceleration.

(J)                  Notwithstanding
anything herein to the contrary, if the option granted to Holders to require
the purchase of the Securities on the applicable Option Purchase Date is determined
to constitute a tender offer, the Company shall comply with all applicable
tender offer rules under the Exchange Act, including Rule 13e-4 and Regulation
14E thereunder, and with all other applicable laws.

3.09              REPURCHASE
AT OPTION OF HOLDER UPON A FUNDAMENTAL CHANGE.

(A)               In the event any
Fundamental Change (as defined below) shall occur, each Holder of Securities
shall have the right (the “Fundamental Change
Repurchase Right”), at such Holder’s option, to require the Company
to repurchase all of such Holder’s Securities (or portions thereof that are
integral multiples of $1,000 in principal amount), on a date selected by the
Company (the “Fundamental Change Repurchase
Date”), which Fundamental Change Repurchase Date shall be no later
than thirty five (35) days, nor earlier than twenty (20) days,

 20
 

after the date the Fundamental Change Notice
(as defined below) is mailed in accordance with Section 3.09(B), at a price, payable in cash, equal to one
hundred percent (100%) of the principal amount of the Securities (or portions
thereof) to be so repurchased (the “Fundamental
Change Repurchase Price”), plus accrued and unpaid interest, if any,
to, but excluding, the Fundamental Change Repurchase Date, upon:

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

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

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

(c)                 that
such principal amount of Securities are to be repurchased pursuant to the terms
and conditions specified in paragraph 9 of
the Securities and in this Indenture; and

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

provided,
however, that if such Fundamental Change
Repurchase Date is after a record date for the payment of an installment of
interest and on or before the related interest payment date, then the accrued
and unpaid interest, if any, to, but excluding, such interest payment date will
be paid on such interest payment date to the Holder of record of such
Securities at the close of business on such record date (without any surrender
of such Securities by such Holder), and the Holder surrendering such Securities
for repurchase will not be entitled to any such accrued and unpaid interest
unless such Holder was also the Holder of record of such Securities at the
close of business on such record date.

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

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

Notwithstanding
anything herein to the contrary, any Holder that has delivered the Repurchase
Notice contemplated by this Section 3.09(A) to
the Company (if it is acting as its

 21
 

own Paying Agent)
or to a Paying Agent designated by the Company for such purpose in the
Fundamental Change Notice shall have the right to withdraw such Repurchase
Notice by delivery, at any time prior to the close of business on the Business
Day immediately preceding the Fundamental Change Repurchase Date, of a written
notice of withdrawal to the Company (if acting as its own Paying Agent) or the
Paying Agent, which notice shall contain the information specified in Section 3.09(B)(xi).

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

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

Each Fundamental
Change Notice shall state: 

(i)              the events causing
the Fundamental Change;

(ii)            the date of such
Fundamental Change;

(iii)           the Fundamental Change
Repurchase Date;

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

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

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

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

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

(ix)           that the Fundamental
Change Repurchase Price, plus accrued and unpaid interest, if any, to, but
excluding, the Fundamental Change Repurchase Date, for any Security as to which
a Repurchase Notice has been given and not withdrawn will be paid as promptly
as practicable, but in no event later than the later of such Fundamental Change
Repurchase Date and the time of delivery of the Security (together with all

 22
 

necessary endorsements) as described in clause (viii) above; provided,
however, that if such Fundamental Change
Repurchase Date is after a record date for the payment of an installment of interest
and on or before the related interest payment date, then the accrued and unpaid
interest, if any, to, but excluding, such interest payment date will be paid on
such interest payment date to the Holder of record of such Security at the
close of business on such record date (without any surrender of such Securities
by such Holder), and the Holder surrendering such Security for repurchase will
not be entitled to any such accrued and unpaid interest unless such Holder was
also the Holder of record of such Security at the close of business on such
record date;

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

(xi)           that a Holder will be
entitled to withdraw its election in the Repurchase Notice if the Company (if
acting as its own Paying Agent), or the Paying Agent receives, prior to the
close of business on the Business Day immediately preceding the Fundamental
Change Repurchase Date, or such longer period as may be required by law, a
letter or telegram, telex or facsimile transmission (receipt of which is
confirmed and promptly followed by a letter) setting forth (I) the name of such
Holder, (II) a statement that such Holder is withdrawing its election to have
Securities purchased by the Company on such Fundamental Change Repurchase Date
pursuant to a Repurchase Upon Fundamental Change, (III) the certificate
number(s) of such Securities to be so withdrawn, if such Securities are in
certificated form, (IV) the principal amount of the Securities of such Holder
to be so withdrawn, which amount must be $1,000 or an integral multiple thereof
and (V) the principal amount, if any, of the Securities of such Holder that
remain subject to the Repurchase Notice delivered by such Holder in accordance
with this Section 3.09, which
amount must be $1,000 or an integral multiple thereof;

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

(xiii)        that Securities with
respect to which a Repurchase Notice is given by a Holder may be converted
pursuant to Article X, if
otherwise convertible in accordance with Article
X, only if such Repurchase Notice has been withdrawn in accordance
with this Section 3.09 or if there
shall be a Default in the payment of the Fundamental Change Repurchase Price or
in the accrued and unpaid interest, if any, payable as herein provided upon
Repurchase Upon Fundamental Change; and

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

 23
 

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

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

(C)                Subject to the
provisions of this Section 3.09,
the Company shall pay, or cause to be paid, the Fundamental Change Repurchase
Price, plus accrued and unpaid interest, if any, to, but excluding, the Fundamental
Change Repurchase Date, with respect to each Security as to which the
Fundamental Change Repurchase Right shall have been exercised to the Holder
thereof as promptly as practicable, but in no event later than the later of the
Fundamental Change Repurchase Date and the time such Security is surrendered to
the Paying Agent; provided, however,
that if such Fundamental Change Repurchase Date is after a record date for the
payment of an installment of interest and on or before the related interest
payment date, then the accrued and unpaid interest, if any, to, but excluding,
such interest payment date will be paid on such interest payment date to the
Holder of record of such Security at the close of business on such record date,
and the Holder surrendering such Security for repurchase will not be entitled
to any such accrued and unpaid interest unless such Holder was also the Holder
of record of such Security at the close of business on such record date.

(D)                Prior to 10:00
a.m., New York City time on a Fundamental Change Repurchase Date, the Company
shall deposit with a Paying Agent (or, if the Company is acting as its own
Paying Agent, segregate and hold in trust in accordance with Section 2.5 of the
Base Indenture) money, in funds immediately available on the Fundamental Change
Repurchase Date, sufficient to pay the consideration payable as herein provided
upon Repurchase Upon Fundamental Change for all of the Securities that are to
be repurchased by the Company on such Fundamental Change Repurchase Date pursuant
to a Repurchase Upon Fundamental Change. 
The Paying Agent shall return to the Company, as soon as practicable,
any money not required for that purpose.

(E)                 Once the
Fundamental Change Notice and the Repurchase Notice have been duly given in
accordance with this Section 3.09, the Securities to be repurchased
pursuant to a Repurchase Upon Fundamental Change shall, on the Fundamental
Change Repurchase Date, become due and payable in accordance herewith, and, on
and after such date (unless there shall be a Default in the payment of the
consideration payable as herein provided upon Repurchase Upon Fundamental
Change), except as otherwise herein provided, such Securities shall cease to
bear interest, and all rights of the Holders of such Securities shall
terminate, other than the right to receive, in accordance herewith, such
consideration.

(F)                 Securities with
respect to which a Repurchase Notice has been duly delivered in accordance with
this Section 3.09 may be converted pursuant to Article X, if otherwise convertible in
accordance with Article X, only if
such Repurchase Notice has been withdrawn in accordance with this Section 3.09 or if there shall be a Default
in the payment of the consideration payable as herein provided upon Repurchase
Upon Fundamental Change.

 24
 

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

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

(I)                  Notwithstanding
anything herein to the contrary, there shall be no purchase of any Securities
pursuant to this Section 3.09 if
the principal amount of the Securities has been accelerated pursuant to Section 6.02 and such acceleration shall
not have been rescinded on or before the applicable Fundamental Change
Repurchase Date.  The Paying Agent will
promptly return to the respective Holders thereof any Securities tendered to it
for Repurchase Upon Fundamental Change during the continuance of such an
acceleration.

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

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

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

(a)                 any “person” or “group” (as such terms
are used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial
owner” (as such term is used in Rule 13d-3 under the Exchange Act), directly or
indirectly, of fifty percent (50%) or more of the total outstanding voting
power of all classes of the Company’s Capital Stock entitled to vote generally
in the election of directors (such an event, an “Acquisition of Voting Control”); or

(b)                 there occurs a sale, transfer, lease,
conveyance or other disposition of all or substantially all of the property or
assets of the Company to any “person” or “group” (as such terms are used in
Sections 13(d) and 14(d) of the Exchange Act), including any group acting for
the purpose of acquiring, holding, voting or

 25
 

disposing of securities within the meaning of Rule 13d-5(b)(1) under
the Exchange Act; or

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

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

(2)                 at least ninety percent (90%) of the
consideration (other than cash payments for fractional shares or pursuant to
statutory appraisal rights) in such consolidation or merger consists of common
stock and any associated rights traded on a U.S. national securities exchange
(or which will be so traded when issued or exchanged in connection with such consolidation
or merger), and, as a result of such consolidation or merger, the Securities
become convertible into cash and, if applicable, solely such common stock and
associated rights (such a consolidation or merger that satisfies the conditions
set forth in this clause (2), a “Listed
Stock Business Combination”); or

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

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

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

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

provided, however, that a Change in Control will not be deemed to have
occurred if the Closing Sale Price for each of twenty (20) or more Trading Days
during the thirty (30)

 26
 

consecutive Trading Days ending on the last
Trading Day of the calendar quarter immediately preceding the effective date of
the transaction or even that, but for this clause, would have constituted a
Change in Control exceeds one hundred and twenty percent (120%) of the
Conversion Price in effect on such last Trading Day.

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

IV.                 ADDITIONAL COVENANTS

Except as
otherwise set forth in this Article IV,
holders shall have the benefit of the following covenants, in addition to the
covenants of the Company set forth in Article IV of the Base Indenture:

4.01              Payment of Securities.

This Section 4.01
shall apply to the Securities in lieu of Section 4.1 of the Base Indenture.

The Company shall
pay all amounts due with respect to the Securities on the dates and in the
manner provided in the Securities.  All
such amounts shall be considered paid on the date due if the Paying Agent holds
(or, if the Company is acting as Paying Agent, the Company has segregated and
holds in trust in accordance with Section 2.5 of the Base Indenture) on that
date money sufficient to pay the amount then due with respect to the Securities
(unless there shall be a Default in the payment of such amounts to the
respective Holder(s)).

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

The Securities
shall not be entitled to any sinking fund and Article XI of the Base Indenture
shall not apply to the Securities.

4.02              Maintenance of Office or Agency.

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

 27
 

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

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

4.03              SEC Reports.

This Section 4.03 shall apply to the Securities in lieu of
Section 4.2 of the Base Indenture.

The Company shall
deliver to the Trustee, no later than fifteen (15) calendar days after the date
such report is required to be filed with the SEC pursuant to the Exchange Act
(after taking account any applicable extension pursuant to Rule 12b-25 under
the Exchange Act), a copy of each report the Company is required to file with
the SEC pursuant to Section 13 or 15(d) of the Exchange Act; provided, however, that the Company shall
not be required to deliver to the Trustee any material for which the Company
has sought and received confidential treatment by the SEC; provided
further, each such report will be deemed to be so delivered to the
Trustee if the Company files such report with the SEC through the SEC’s EDGAR
database no later than the time such report is required to be filed with the
SEC pursuant to the Exchange Act.  In the
event the Company is at any time while any Securities are outstanding no longer
subject to the reporting requirements of Section 13 or Section 15(d) of the
Exchange Act, the Company shall continue to provide to the Trustee and, upon
request, to each Holder, no later than the date the Company would have been
required to file the same with the SEC, the reports the Company would have been
required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange
if the Company were subject to the reporting requirements of such sections. The
Company also shall comply with the other provisions of TIA § 314(a).  Delivery of such reports, information and
documents to the Trustee is for informational purposes only, and the Trustee’s
receipt thereof shall not constitute constructive notice of any information
contained therein or determinable from information contained therein, including
the Company’s compliance with any of its covenants hereunder (as to which the
Trustee is entitled to rely exclusively on Officers’ Certificates).

4.04              Corporate Existence.

Subject to Article V, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate
existence and the corporate existence of each of its then-existing
Subsidiaries, in accordance with the respective organizational documents of the
Company and of such Subsidiaries, if any, and the rights (charter and
statutory), licenses and franchises of the Company and its then-existing
Subsidiaries; provided, however,
that the Company shall not be required to preserve any such right, license or
franchise, or the corporate existence of any such Subsidiary of the Company, if
in the good faith judgment

 28
 

of the
Board of Directors (i) such preservation or existence is not material to the
conduct of business of the Company and (ii) the loss of such right, license or
franchise or the dissolution of such Subsidiary does not have a material
adverse impact on the Holders.

4.05              Further Instruments and Acts.

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

V.                   SUCCESSORS

This Article V shall apply to the Securities in lieu of Article V
of the Base Indenture.

5.01              When Company May Merge, etc.

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

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

5.02              Successor Substituted.

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

VI.                 DEFAULTS AND REMEDIES

This Article VI shall apply to the Securities in lieu of Article
VI of the Base Indenture.

 29
 

6.01              Events of Default.

In lieu of the
Events of Default enumerated in Section 6.1 of the Base Indenture, an “Event of Default” is deemed to occur with respect to the
Securities if:

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

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

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

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

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

(vi)          the Company or any of its
then-existing Subsidiaries defaults in the payment when due, after the
expiration of any applicable grace period, of principal of, or premium, if any,
or interest on, Indebtedness for money borrowed, in the aggregate principal
amount then outstanding of fifteen million dollars ($15,000,000) or more, or
the acceleration of Indebtedness of the Company or any of its then-existing
Subsidiaries for money borrowed in such aggregate principal amount or more so
that it becomes due and payable prior to the date on which it would otherwise
become due and payable and such default is not cured or waived, or such
acceleration is not rescinded, within sixty (60) days after notice to the
Company by the Trustee or to the Company and the Trustee by Holders of at least
twenty five percent (25%) in aggregate principal amount of the Securities then
outstanding, each in accordance with this Indenture;

(vii)         the Company or any of its
then-existing Subsidiaries fails to pay final judgments, the aggregate
uninsured portion of which is at least fifteen million dollars ($15,000,000),
and such judgments are not paid or discharged within sixty (60) days;

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

(A)               commences
a voluntary case,

 30
 

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

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

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

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

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

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

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

and, in the case of each of the foregoing clauses (A),
(B) and (C) of this Section 6.01(ix),
the order or decree remains unstayed and in effect for at least ninety (90)
consecutive days.

The term “Bankruptcy Law” means Title 11, U.S. Code or any similar
Federal or State law for the relief of debtors. 
The term “Custodian” means any receiver,
trustee, assignee, liquidator or similar official under any Bankruptcy Law.

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

 31

6.02              ACCELERATION.

If an Event of
Default (excluding an Event of Default specified in Section
6.01(viii) or (ix)
with respect to the Company (but including an Event of Default specified in Section 6.01(viii) or (ix) solely
with respect to a Significant Subsidiary of the Company or any group of the
Company’s then-existing Subsidiaries that in the aggregate would constitute a
Significant Subsidiary of the Company)) occurs and is continuing, the Trustee
by written notice to the Company, or the Holders of at least twenty five
percent (25%) in aggregate principal amount of the Securities then outstanding
by written notice to the Company and the Trustee, may declare the Securities to
be immediately due and payable in full. 
Upon such declaration, the principal of, and any accrued and unpaid
interest on, all Securities shall be due and payable immediately.  If an Event of Default specified in Section 6.01(viii) or (ix) with respect to the Company (excluding, for purposes
of this sentence, an Event of Default specified in Section
6.01(viii) or (ix) solely
with respect to a Significant Subsidiary of the Company or any group of the
Company’s then-existing Subsidiaries that in the aggregate would constitute a
Significant Subsidiary of the Company) occurs, the principal of, and accrued
and unpaid interest on, all the Securities shall ipso facto become
and be immediately due and payable without any declaration or other act on the
part of the Trustee or any Holder.  The
Holders of a majority in aggregate principal amount of the Securities then
outstanding by written notice to the Trustee may rescind or annul an
acceleration and its consequences if (A) the rescission would not conflict with
any order or decree, (B) all existing Events of Default, except the nonpayment
of principal or interest that has become due solely because of the
acceleration, have been cured or waived and (C) all amounts due to the Trustee
under Section 7.7 of the Base Indenture have been paid.

6.03              OTHER
REMEDIES.

Notwithstanding
any other provision of this Indenture, if an Event of Default occurs and is
continuing, the Trustee may pursue any available remedy by proceeding at law or
in equity to collect the payment of amounts due with respect to the Securities
or to enforce the performance of any provision of the Securities or this
Indenture.

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

6.04              WAIVER
OF PAST DEFAULTS.

Subject to Sections 6.07 and 9.02, the Holders of a majority in aggregate principal
amount of the Securities then outstanding may, by notice to the Trustee, waive
any past Default or Event of Default and its consequences, other than (A) a
Default or Event of Default in the payment of the principal of, or premium, if
any, or interest on, any Security, or in the payment of the Redemption Price,
the Option Purchase Price or the Fundamental Change Repurchase Price (or
accrued and unpaid interest, if any, payable as herein provided, upon
Redemption, Purchase at Holder’s Option or Repurchase Upon Fundamental Change),
(B) a Default or Event of Default arising from a failure by the Company to
convert any Securities in accordance with this

 32
 

Indenture
or (C) any Default or Event of Default in respect of any provision of this
Indenture or the Securities which, under Section 9.02,
cannot be modified or amended without the consent of the Holder of each
outstanding Security affected.  When a
Default or an Event of Default is waived, it is cured and ceases.  This Section 6.04
shall be in lieu of TIA § 316(a)(1)(B), and, as permitted by the TIA, TIA §
316(a)(1)(B) is hereby expressly excluded from this Indenture.

6.05              CONTROL
BY MAJORITY.

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

6.06              LIMITATION
ON SUITS.

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

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

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

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

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

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

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

 33
 

6.07              RIGHTS
OF HOLDERS TO RECEIVE PAYMENT.

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

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

6.08              COLLECTION
SUIT BY TRUSTEE.

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

6.09              TRUSTEE
MAY FILE PROOFS OF CLAIM.

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

The Trustee may
collect and receive any moneys or other property payable or deliverable on any
such claims and to distribute the same, and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or similar official in any judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay the Trustee any amount due it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, and any other amounts due the Trustee under Section 7.7
of the Base Indenture.

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

6.10              PRIORITIES.

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

First:                                              to
the Trustee for amounts due under Section 7.7 of the Base Indenture;

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

 34
 

Third:                                        to
the Company.

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

6.11              UNDERTAKING
FOR COSTS.

In any suit for
the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as Trustee, a court
in its discretion may require the filing by any party litigant in the suit
other than the Trustee of an undertaking to pay the costs of the suit, and the
court in its discretion may assess reasonable costs, including reasonable attorneys’
fees, against any party litigant in the suit, having due regard to the merits
and good faith of the claims or defenses made by the party litigant.  This Section 6.11 does not apply to a suit by the Trustee, a suit by a
Holder pursuant to Section 6.07 or a suit by Holders of more than ten percent (10%) in
aggregate principal amount of the outstanding Securities.

VII.               NO
DEFEASANCE OR COVENANT DEFEASANCE

Sections 8.1, 8.3,
8.4, 8.5 and 8.6 of the Base Indenture shall not apply to the Securities.

VIII.             DISCHARGE
OF INDENTURE

8.01              TERMINATION
OF THE OBLIGATIONS OF THE COMPANY.

This Supplemental
Indenture shall cease to be of further effect if (a) either (i) all outstanding
Securities (other than Securities replaced pursuant to Section 2.05
hereof) have been delivered to the Trustee for cancellation or (ii) all
outstanding Securities have become due and payable at their scheduled maturity
or upon Purchase at Holder’s Option, Redemption or Repurchase Upon Fundamental
Change, and in either case the Company irrevocably deposits, prior to the
applicable due date, with the Trustee or the Paying Agent (if the Paying Agent
is not the Company or any of its Affiliates) cash sufficient to pay all amounts
due and owing on all outstanding Securities (other than Securities replaced
pursuant to Section 2.05 hereof) on the
Maturity Date or an Option Purchase Date, Redemption Date or Fundamental Change
Repurchase Date, as the case may be; (b) the Company pays to the Trustee all
other sums payable hereunder by the Company; (c) no Default or Event of Default
with respect to the Securities shall exist on the date of such deposit; (d)
such deposit will not result in a breach or violation of, or constitute a
Default or Event of Default under, the Indenture or any other agreement or
instrument to which the Company is a party or by which it is bound; and (e) the
Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for herein
relating to the satisfaction and discharge of this Supplemental Indenture have
been complied with; provided, however, that Sections 2.02, 2.03, 2.05, 2.06, 2.10, , 3.05, 3.08, 3.09, 4.01 and 4.02 and Articles VIII and X shall survive
any

 35
 

discharge
of this Supplemental Indenture until such time as the Securities have been paid
in full and there are no Securities outstanding.

8.02              APPLICATION
OF TRUST MONEY.

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

8.03              REPAYMENT
TO COMPANY.

This Section 8.03 shall apply to the Securities in lieu of
Section 8.5 of the Base Indenture.

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

8.04              REINSTATEMENT.

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

IX.                AMENDMENTS

This Article IX shall apply to the Securities in lieu of Article
IX of the Base Indenture.

 36
 

9.01              WITHOUT
CONSENT OF HOLDERS.

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

(i)              to comply with Sections 5.01
and 10.11;

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

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

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

In
addition, the Company and the Trustee may enter into a supplemental indenture
without the consent of Holders of the Securities to (i) cure any ambiguity,
defect, omission or inconsistency in this Indenture in a manner that does not,
individually or in the aggregate with all other modifications made or to be
made to the Indenture, adversely affect the rights of any Holder; or (ii)
conform this Indenture to the description of the Securities contained in the
Prospectus Supplement of the Company, dated February 6, 2007 and filed with the
SEC on February 7, 2007 (File No. 333-139455).

9.02              WITH
CONSENT OF HOLDERS.

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

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

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

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

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

 37
 

(e)                 modify, in a manner adverse to
Holders, the provisions relating to Redemption or the provisions with respect
to the right of Holders pursuant to Article
III to require the Company to purchase Securities on an Option
Purchase Date or to repurchase Securities upon the occurrence of a Fundamental
Change;

(f)                  modify the provisions of Section 2.11 in a manner adverse to
Holders;

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

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

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

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

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

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

9.03              COMPLIANCE
WITH TRUST INDENTURE ACT.

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

9.04              REVOCATION
AND EFFECT OF CONSENTS.

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

 38
 

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

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

9.05              NOTATION
ON OR EXCHANGE OF SECURITIES.

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

9.06              TRUSTEE
PROTECTED.

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

X.                  CONVERSION

10.01           CONVERSION
PRIVILEGE; RESTRICTIVE LEGENDS.

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

(i)          Conversion Based on
Closing Sale Price of Common Stock. 
The Securities may be surrendered for conversion into cash and, if
applicable, shares of Common Stock on any Business Day of a calendar quarter
after the calendar quarter ending March 31, 2007, if the Closing Sale Price for
each of twenty (20) or more Trading Days in a period of thirty (30) consecutive
Trading Days ending on the last Trading Day of the immediately preceding
calendar quarter exceeds one hundred and twenty percent (120%) of the
Conversion Price in effect on the last Trading Day of the immediately preceding
calendar quarter.  Solely for purposes of
determining whether

 39
 

the Securities shall have become convertible
pursuant to this Section 10.01(A)(i),
the Board of Directors shall, in its good faith determination, which shall be
described in a Board Resolution, make appropriate adjustments to the Closing
Sale Prices and/or such Conversion Price used to determine whether the
Securities shall have become convertible pursuant to this Section 10.01(A)(i) to account for any adjustments to the Conversion Rate which
shall have become effective, or any event requiring an adjustment to the
Conversion Rate where the Ex Date of such event occurs, during the period of
thirty (30) consecutive Trading Days ending on the last Trading Day of
the immediately preceding calendar quarter.

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

(iii)       Conversion Based on
Redemption.  A Security, or
portion of a Security, which has been called for Redemption pursuant to paragraph 6 of the Securities may be
surrendered for conversion into cash and, if applicable, shares of Common
Stock; provided, however,
that such Security or portion thereof may be surrendered for conversion
pursuant to this paragraph only until the close of business on the Business Day
immediately preceding the Redemption Date.

(iv)      Conversion Upon Certain
Distributions.  If the Company
takes any action, or becomes aware of any event, that would require an
adjustment to the Conversion Rate pursuant to Sections
10.05(b), 10.05(c), 10.05(d) or 10.05(e), the Securities may be surrendered for conversion
into cash and, if applicable, shares of Common Stock beginning on the date the
Company mails the notice to the Holders as provided in Section 10.10 (or, if earlier, the date the
Company is required to mail such notice) and at any time thereafter until the
close of business on the Business Day

 40
 

immediately preceding the Ex Date of the
applicable transaction or until the Company announces that such transaction
will not take place.

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

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

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

then, in each case, the Securities may be surrendered
for conversion into cash and, if applicable, shares of Common Stock at any time
during the period
that begins on, and includes, the date that is thirty (30) calendar days prior
to the date originally announced by the Company as the anticipated effective
date of such transaction (which anticipated effective date the Company
shall disclose, in good faith, in the written notice, public announcement and
publication referred to in Section 10.01(D))
and ends on, and includes, the
date that is thirty (30) calendar days after the actual effective date of such
transaction; provided, however,
that if such transaction is a Make-Whole Fundamental Change, then the
Securities may also be surrendered for conversion into cash and, if applicable,
shares of Common Stock at any time during
the Make-Whole Conversion Period applicable to such Make-Whole Fundamental
Change; provided, further,
that if such transaction is a Fundamental Change, then the Securities
may also be surrendered for conversion into cash and, if applicable, shares of
Common Stock at any time until, and including, the Fundamental Change
Repurchase Date applicable to such Fundamental
Change; provided, further, that if the Company
shall announce a transaction that shall cause the Securities to become
convertible pursuant to this Section 10.01(A)(v),
but such transaction shall not be consummated, then on the date the Company
shall announce that such transaction will not occur, the Securities shall cease
to be convertible pursuant to this Section 10.01(A)(v)
on account of such announcement of such transaction (it being understood that
nothing in this proviso shall affect whether the Securities shall become
convertible pursuant to this Section 10.01(A)(v)
on account of another announcement by the Company).

(vi)      Conversion from and
including December 15, 2011 to and including February 15, 2012 and on or after
February 15, 2025.  The
Securities may be surrendered for conversion into cash and, if applicable,
shares of Common Stock at any time from, and including, December 15, 2011 to,
and including, February 15, 2012 and at any time on or after February 15, 2025.

(B)                Notwithstanding
anything herein to the contrary, the right to convert the Securities pursuant
to this Article X shall terminate
at the close of business on the Business Day immediately preceding the Maturity
Date.

 41
 

(C)                The initial
Conversion Rate shall be 35.8616 shares of Common Stock per $1,000 principal
amount of Securities.  The Conversion
Rate shall be subject to adjustment in accordance with Sections 10.05 through 10.14.

(D)                Whenever any event
described in Section 10.01 shall
occur which shall cause the Securities to become convertible as provided in
this Article X, the Company shall
promptly deliver, in accordance with Section 10.2 of the Base Indenture,
written notice of the convertibility of the Securities to the Trustee and each
Holder and shall, as soon practicable, but in no event later than the open of
business on the third Business Day following the first date the Securities
shall become convertible as provided in this Article
X as a result of such event, publicly announce, through a reputable
national newswire service, that the Securities have become convertible.  Such written notice and public announcement
shall include:

(i)          a description of such event;

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

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

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

If the
Company shall fail to make such public announcement on or before the open of
business on the first date the Securities shall become convertible as provided
in this Article X as a result of such event,
then (1) the Securities shall remain convertible for an additional Business Day
for each Business Day, on or after such first date the Securities become
convertible, that the Company shall fail to make such public announcement (an “Extension Period”); and (2) if the event causing the
Securities to become convertible shall be a Make-Whole Fundamental Change, then the increased Conversion Rate
applicable, pursuant to Section10.14, to
Securities surrendered within the time periods specified in Section10.14 shall continue to apply to Securities
surrendered for conversion during any such Extension Period.

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

10.02           CONVERSION
PROCEDURE AND PAYMENT UPON CONVERSION.

(A)               To convert a
Security, a Holder must satisfy the requirements of paragraph 10 of the Securities.  Upon receipt of a Conversion Notice, the
Conversion Agent shall promptly, but in no case less than two (2) Business
Days, provide written notice to the Company and the Hedge Counterparties of
receipt of the Conversion Notice, which such notice shall include the following
information:

 42
 

(i)          the date upon which such
Conversion Notice was executed by the Holder delivering such Conversion Notice
to the Conversion Agent; and

(ii)        the principal amount (in
integral multiples of $1,000) to be converted pursuant to such Conversion
Notice.

(B)                Upon conversion of
a Holder’s Security, the Company shall deliver, through the Conversion Agent,
the following to such Holder:

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

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

The
Company shall deliver such Principal Return and, if applicable, such Net Shares
as soon as practicable following the date (the “Conversion
Date”) on which such Holder satisfies all the requirements for such
conversion specified in paragraph 10 of
the Securities, but in no event later than three (3) Business Days after the
last Trading Day in the Cash Settlement Averaging Period applicable to such
conversion; provided, however,
that any Make-Whole Consideration payable pursuant to Section
10.14 shall be delivered by the Company within the time period
specified in Section10.14(D).

(C)                “Cash
Settlement Averaging Period” shall mean, with respect to a Security
that is tendered for conversion in accordance with this Article X, either (i) in the event such
Security is surrendered for such conversion during the period beginning
on the thirty third (33rd) scheduled Trading Day prior to the Maturity Date and
ending at the close of business on the Business Day immediately preceding the
Maturity Date, the thirty (30) consecutive Trading Days beginning on, and
including, the thirtieth (30th) scheduled Trading Day prior to the Maturity Date; or (ii) in all other circumstances, the
thirty (30) consecutive Trading-Day period that begins on, and includes, the
third (3rd) Trading Day after the day of the Conversion Date for such
conversion.

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

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

 43
 

“Daily Net Shares”
shall mean, with respect to a Trading Day, an amount equal to the following:
(i) if the Daily Conversion Value for such Trading Day is equal to or
lesser than thirty three
dollars and thirty three cents ($33.33), then the Daily Net Shares with
respect to such Trading Day shall mean an amount equal to zero (0); and (ii) if the Daily Conversion Value for
such Trading Day exceeds thirty
three dollars and thirty three cents ($33.33), then the Daily Net Shares
with respect to such Trading Day shall mean a fraction (a) whose numerator is
the excess of such Daily Conversion Value over thirty three dollars and thirty three cents ($33.33) and (b)
whose denominator is the
Volume-Weighted Average Price per share of Common Stock on such Trading Day; provided, however, that
the Board of Directors shall, in its good faith determination, which shall be
described in a Board Resolution, make appropriate adjustments to such Daily Net
Shares to account for any adjustments to
the Conversion Rate which shall have become effective, or any event requiring
an adjustment to the Conversion Rate where the Ex Date of such event occurs,
during the applicable Cash Settlement Averaging Period.

The “Volume-Weighted
Average Price” per share of Common Stock on any Trading Day shall
mean the volume-weighted average price per share of Common Stock on the
NASDAQ Global Market or, if
the Common Stock shall not be listed on the NASDAQ Global Market, on the principal exchange or
over-the-counter market on which the Common Stock shall then be listed or
traded, from 9:30 a.m. to
4:00 p.m. (New York City time) on such Trading Day as displayed by Bloomberg; provided, however, that if
such volume-weighted average price shall not be available, then the amount to
be used as the Volume-Weighted Average Price on such Trading Day for purposes
hereof shall be determined by a nationally recognized investment banking firm
retained for such purpose by the Company.

(D)                At and after the
close of business on the last Trading Day in the Cash Settlement Averaging
Period applicable to a Security submitted for conversion, the person in whose
name any certificate representing Net Shares, if any, is to be registered shall
be treated as a stockholder of record of the Company, and all rights of the
Holder of such Security shall terminate, other than the right to receive the
consideration deliverable upon conversion of such Security as provided herein.

(E)                 Except as
provided in the Securities or in this Article
X, no payment or adjustment will be made for accrued interest on a
converted Security or for dividends on any Common Stock issued on or prior to
conversion.  If any Holder surrenders a
Security for conversion after the close of business on the record date for the
payment of an installment of interest and prior to the related interest payment
date, then, notwithstanding such conversion, the interest payable with respect
to such Security on such interest payment date shall be paid on such interest
payment date to the Holder of record of such Security at the close of business
on such record date; provided, however,
that such Security, when surrendered for conversion, must be accompanied by
payment to the Conversion Agent on behalf of the Company of an amount equal to
the interest payable on such interest payment date on the portion so converted
unless either (i) such Security is called for Redemption pursuant to Section 3.04 and paragraphs 6 and 7
of the Securities; (ii) the Company shall have, in respect of a Fundamental
Change, specified a Fundamental Change Repurchase Date which is after such
record date and on or before such interest payment date; or (iii) such Security
is surrendered for conversion after the close of business on the record date
immediately preceding the Maturity Date; provided further, however,
that, if the Company shall have, prior to the Conversion Date with respect to a
Security,

 44
 

defaulted in a payment of interest on such
Security, then in no event shall the Holder of such Security who surrenders
such Security for conversion be required to pay such defaulted interest or the
interest that shall have accrued on such defaulted interest pursuant to Section
2.13 of the Base Indenture or otherwise (it being understood that nothing in
this Section 10.02(E) shall affect
the Company’s obligations under Section 2.13 of the Base Indenture).

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

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

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

10.03           TAXES ON
CONVERSION.

If a Holder
converts its Security, the Company shall pay any documentary, stamp or similar
issue or transfer tax or duty due on the issue, if any, of shares of Common
Stock upon the conversion.  However, such
Holder shall pay any such tax or duty which is due because such shares are
issued in a name other than such Holder’s name. 
The Conversion Agent may refuse to deliver a certificate representing
the shares of Common Stock to be issued in a name other than such Holder’s name
until the Conversion Agent receives a sum sufficient to pay any tax or duty
which will be due because such shares are to be issued in a name other than
such Holder’s name.  Nothing herein shall
preclude any tax withholding required by law or regulation. If the Company pays
withholding taxes on behalf of a Holder as a result of an adjustment to the
Conversion Rate, the Company may, at its option, set off such payments against
payments to such Holder of cash and shares of Common Stock on the Securities.

10.04           COMPANY TO
PROVIDE STOCK.

The Company shall
at all times reserve out of its authorized but unissued Common Stock or Common
Stock held in its treasury enough shares of Common Stock to permit the
conversion, in accordance herewith, of all of the Securities.

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

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

10.05           ADJUSTMENT
OF CONVERSION RATE.

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

 45
 

(a)                 In case the Company shall (1) pay a
dividend in shares of Common Stock to all holders of Common Stock, (2) make a
distribution in shares of Common Stock to all holders of Common Stock, (3)
subdivide the outstanding shares of Common Stock into a greater number of
shares of Common Stock or (4) combine the outstanding shares of Common Stock
into a smaller number of shares of Common Stock, the Conversion Rate shall be
adjusted by multiplying the Conversion Rate in effect immediately prior to
close of business on the record date or effective date, as applicable, of such
dividend, distribution, subdivision or combination by the number of shares of
Common Stock which a person who owns only one share of Common Stock immediately
before the record date or effective date, as applicable, of such dividend,
distribution, subdivision or combination and who is entitled to participate in
such dividend, distribution, subdivision or combination would own immediately
after giving effect to such dividend, distribution, subdivision or combination
(without giving effect to any arrangement pursuant to such dividend,
distribution, subdivision or combination not to issue fractional shares of
Common Stock).  Any adjustment made
pursuant to this Section 10.05(a) shall become effective immediately
after the record date in the case of a dividend or distribution and shall
become effective immediately after the effective date in the case of a
subdivision or combination.

(b)                 In case the Company shall issue rights
or warrants to all or substantially all holders of Common Stock, entitling
them, for a period expiring not more than sixty (60) days immediately following
the record date for the determination of holders of Common Stock entitled to
receive such rights or warrants, to subscribe for or purchase shares of Common
Stock (or securities convertible into or exchangeable or exercisable for Common
Stock), at a price per share (or having a conversion, exchange or exercise
price per share) that is less than the current market price (as determined
pursuant to Section 10.05(g)) per share of Common Stock on the
record date for the determination of holders of Common Stock entitled to
receive such rights or warrants, the Conversion Rate shall be increased by
multiplying the Conversion Rate in effect immediately prior to such record date
by a fraction of which (A) the numerator shall be the sum of (I) the number of
shares of Common Stock outstanding at the close of business on such record date
and (II) the aggregate number of shares
(the “Underlying Shares”) of
Common Stock underlying all such issued rights or warrants (whether by exercise,
conversion, exchange or otherwise), and (B) the denominator shall be the sum of
(I) number of shares of Common Stock outstanding at the close of business on
such record date and (II) the number of shares of Common Stock which the
aggregate exercise, conversion, exchange or other price at which the Underlying
Shares may be subscribed for or purchased pursuant to such rights or warrants
would purchase at such current market price per share of Common Stock.  Such increase shall become effective immediately prior to the opening of business on
the day following such record date. 
In no event shall the Conversion Rate be decreased pursuant to this Section 10.05(b), except as provided in Section 10.06.

(c)                 In case the Company shall dividend or
distribute to all or substantially all holders of Common Stock shares of
Capital Stock of the

 46

Company or any of the Company’s then-existing Subsidiaries (other than
Common Stock), evidences of Indebtedness or other assets (other than dividends
or distributions requiring an adjustment to the Conversion Rate in accordance
with Sections 10.05(d) or 10.05(e)),
or shall dividend or distribute to all or substantially all holders of Common
Stock rights or warrants to subscribe for or purchase securities (other than
dividends or distributions of rights or warrants requiring an adjustment to the
Conversion Rate in accordance with Section
10.05(b)), then in each such case
the Conversion Rate shall be increased by
multiplying the Conversion Rate in effect immediately prior to the close of
business on the record date for the determination of stockholders entitled to such dividend or distribution by a
fraction of which (A) the numerator shall be the current market price per share
of Common Stock (as determined pursuant to Section 10.05(g)) on such record date and (B) the denominator
shall be an amount equal to (I) such current market price per share of Common
Stock less (II) the fair market value (as determined in good faith by the Board
of Directors, whose determination shall be conclusive and described in a Board
Resolution), on such record date, of the portion of the shares of Capital
Stock, evidences of Indebtedness, assets, rights and warrants to be dividended
or distributed applicable to one share of Common Stock, such increase to become
effective immediately prior to the opening of business on the day following
such record date; provided, however, that if such denominator is equal
to or less than zero, then, in lieu of the foregoing adjustment to the
Conversion Rate, adequate provision shall be made so that each Holder
shall have the right to receive upon conversion of its Securities, in addition
to any consideration otherwise payable as herein provided upon such conversion,
an amount, per $1,000 principal amount of such Securities, of shares of Capital Stock, evidences of
Indebtedness, assets, rights and/or warrants that a person that owns, on
such record date, a number of shares of Common Stock equal to the Conversion
Rate in effect at the close of business on such record date would have received
as a result of such dividend or distribution. 
It is expressly understood that a stock buyback or repurchase by the
Company or a similar transaction or program shall in no event trigger an
adjustment to the Conversion Rate pursuant to this Section 10.05(c).  Notwithstanding the foregoing, in the event
that the Company shall distribute rights or warrants (other than distributions
of rights or warrants requiring an adjustment to the Conversion Rate in
accordance with Section 10.05(b) and other than rights under the
Rights Agreement or any other stockholders’ rights plan the Company may have in
effect at such time) (collectively, “Rights”)
pro rata to holders of Common
Stock, the Company may, in lieu of making any adjustment pursuant to this Section 10.05(c),
make proper provision so that each Holder of a Security who converts such
Security (or any portion thereof) on or after the record date for such
distribution and prior to the expiration or redemption of the Rights shall be
entitled to receive upon such conversion, in addition to any consideration
otherwise payable as herein provided upon such conversion, a number of Rights,
per $1,000 principal amount of such Security, equal to the number of Rights to
which a holder of a number of shares of Common Stock equal to the Conversion
Rate in effect at the close of business on such record date would be entitled
at the time of such conversion in accordance

 47
 

with the terms and provisions of and applicable to the Rights.  Notwithstanding the first sentence of this Section 10.05(c),
a distribution of rights pursuant to the Rights Agreement or any other
stockholders’ rights plan shall not constitute a dividend or distribution
requiring an adjustment to the Conversion Rate pursuant to the first sentence
of this Section 10.05(c), provided that (1) such rights
have not separated from the Common Stock at the time of such distribution; and
(2) the Company has made adequate provision in accordance with Section 10.13 for Holders to receive such
rights upon conversion.  In no event
shall the Conversion Rate be decreased pursuant to this Section 10.05(c), except as provided in Section 10.06.

(d)           In case the Company shall, by dividend or
otherwise, at any time make a distribution of cash (excluding any cash that is
distributed as part of a distribution requiring a Conversion Rate adjustment
pursuant to Section 10.05(e)) to
all or substantially all holders of Common Stock, the Conversion Rate shall be
increased by multiplying the Conversion Rate in effect immediately prior to the close of business on the record date for the
determination of holders of Common Stock entitled to such distribution by a fraction (A)
whose numerator shall be the current market price per share of Common Stock (as
determined pursuant to Section 10.05(g)) on such record date and (B) whose
denominator shall be an amount equal to (I) such current market price per share
of Common Stock less (II) the amount of the
distribution per share of Common Stock; provided,
however, that the Conversion Rate
shall not be adjusted pursuant to this Section
10.05(d) to the extent, and only to the extent, such adjustment
would cause the Conversion Price to be less than three-tenths of a cent
($0.003) (which minimum amount shall be subject to appropriate adjustments, in
the good faith determination of the Board
of Directors (whose determination shall be described in a Board Resolution), to
account for stock splits and combinations, stock dividends,
reclassifications and similar events);
provided further that, if the
denominator of such fraction shall be equal to or less than zero, the
Conversion Rate shall be instead adjusted so that the Conversion Price is equal
to three-tenths of a cent ($0.003) (as adjusted in accordance with the
immediately preceding proviso).  An
adjustment to the Conversion Rate pursuant to this Section 10.05(d) shall become effective immediately prior to the opening of business on
the day immediately following such record date.  It is expressly understood that a stock
buyback or repurchase by the Company or a similar transaction or program shall
in no event trigger an adjustment to the Conversion Rate pursuant to this Section 10.05(d).  In no event shall the Conversion Rate be
decreased pursuant to this Section 10.05(d),
except as provided in Section 10.06.

(e)           In case the Company or any of its
then-existing Subsidiaries shall distribute cash or other consideration in
respect of a tender offer or exchange offer made by the Company or any of its
then-existing Subsidiaries for all or any portion of the Common Stock where the
sum of the aggregate amount of such cash distributed and the aggregate fair
market value (as determined in good faith by the Board of Directors, whose
determination shall be conclusive and set forth in a Board Resolution), as of
the Expiration Date (as defined below), of such other

 48
 

consideration distributed (such sum, the “Aggregate Amount”) expressed as an amount per share of Common
Stock validly tendered or exchanged, and not withdrawn, pursuant to such tender
offer or exchange offer as of the Expiration Time (as defined below) (such
tendered or exchanged shares of Common Stock, the “Purchased Shares”) exceeds the Closing Sale Price per share of
Common Stock on the first Trading Day after last date (such last date, the “Expiration Date”) on which tenders or
exchanges could have been made pursuant to such tender offer or exchange offer
(as the same may be amended through the Expiration Date), then the Conversion
Rate shall be increased by multiplying the Conversion Rate in effect
immediately prior to the close of business on the Expiration Date by a fraction
(A) whose numerator is equal to the sum of (I) the Aggregate Amount and (II)
the product of (a) the Closing Sale Price per share of Common Stock on the
first Trading Day after the Expiration Date and (b) an amount equal to (i) the
number of shares of Common Stock outstanding as of the last time (the “Expiration Time”) at which tenders or
exchanges could have been made pursuant to such tender offer or exchange offer
(including all Purchased Shares) less (ii) the Purchased Shares and (B) whose
denominator is equal to the product of (I) the number of shares of Common Stock
outstanding as of the Expiration Time (including all Purchased Shares) and (II)
such Closing Sale Price per Common Share.

An increase, if any, to
the Conversion Rate pursuant to this Section 10.05(e)
shall become effective immediately prior to the opening of business on the
second (2nd) Business Day following the Expiration Date.  In the event that the Company or any of its
then-existing Subsidiaries is obligated to purchase shares of Common Stock
pursuant to any such tender offer or exchange offer, but the Company or such
Subsidiary is permanently prevented by applicable law from effecting any such
purchases, or all such purchases are rescinded, then the Conversion Rate shall
again be adjusted to be the Conversion Rate which would then be in effect if
such tender offer or exchange offer had not been made.  If the application of this Section 10.05(e) to any
tender offer or exchange offer would result in a decrease in the Conversion
Rate, no adjustment shall be made for such tender offer or exchange offer under
this Section 10.05(e).

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

 49
 

(g)           For the purpose of any computation under subsections (a), (b), (c) or (d) above
of this Section 10.05, the current
market price per share of Common Stock on any date shall be deemed to be the
average of the Closing Sale Prices for the ten (10) consecutive Trading Days
ending on, but excluding, the earlier of such date and the Ex Date with respect
to the issuance or distribution requiring such computation; provided, however,
that such current market price per share of Common Stock shall be appropriately adjusted by the Company,
in its good faith determination, to
account for any adjustment, pursuant hereto, to the Conversion Rate that shall
become effective, or any event requiring, pursuant hereto, an adjustment to the
Conversion Rate where the Ex Date of such event occurs, at any time during the
period that begins on, and includes, the first day of such ten (10) consecutive
Trading Days and ends on, and includes, the date when the adjustment to the
Conversion Rate on account of the event requiring the computation of such
current market price becomes effective.

The term “Ex
Date,” (i) when used with respect to any issuance or distribution,
means the first date on which the Common Stock trades the regular way on the
relevant exchange or in the relevant market from which the Closing Sale Price
was obtained without the right to receive such issuance or distribution, (ii)
when used with respect to any subdivision or combination of shares of Common
Stock, means the first date on which the Common Stock trades the regular way on
such exchange or in such market after the time at which such subdivision or
combination becomes effective, and (iii) when used with respect to any tender
offer or exchange offer means the first date on which the Common Stock trades
the regular way on such exchange or in such market after the expiration time of
such tender offer or exchange offer (as it may be amended or extended).

10.06       No Adjustment.

No adjustment in
the Conversion Rate pursuant to Section 10.05
shall be required until cumulative adjustments amount to one percent (1%) or
more of the Conversion Rate as last adjusted (or, if never adjusted, the
initial Conversion Rate); provided, however,
that any adjustments to the Conversion Rate which by reason of this Section 10.06 are not
required to be made shall be carried forward and taken into account in any subsequent
adjustment to the Conversion Rate; provided further,
that if the Company shall mail a notice of Redemption pursuant to Section 3.04, or if a
Fundamental Change or Make-Whole Fundamental Change occurs, or if the
Securities shall become convertible pursuant to Section
10.01(A)(iv) or Section 10.01(A)(v),
then, in each case, any adjustments to the Conversion Rate that have been, and
at such time remain, deferred pursuant to this Section
10.06 shall be given effect, and such
adjustments, if any, shall no longer be carried forward and taken into account
in any subsequent adjustment to the Conversion Rate.  All calculations under this Article X shall be made
to the nearest cent or to the nearest one-millionth of a share, as the case may
be.

If any rights,
options or warrants issued by the Company and requiring an adjustment to the
Conversion Rate in accordance with Section 10.05
are only exercisable upon the occurrence of certain triggering events, then the
Conversion Rate will not be adjusted as provided in Section
10.05

 50
 

until
the earliest of such triggering event occurs. 
Upon the expiration or termination of any such rights, options or
warrants without the exercise of such rights, options or warrants, the
Conversion Rate then in effect shall be adjusted immediately to the Conversion
Rate which would have been in effect at the time of such expiration or
termination had such rights, options or warrants, to the extent outstanding
immediately prior to such expiration or termination, never been issued.

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

No adjustment to
the Conversion Rate need be made pursuant to Section
10.05 for a transaction if Holders are to participate in the
transaction without conversion on a basis and with notice that the Board of
Directors determines in good faith to be fair and appropriate in light of the
basis and notice on which holders of Common Stock participate in the
transaction (which determination shall be described in a Board Resolution).

Notwithstanding
anything herein to the contrary, in no event shall the Conversion Rate be
increased pursuant to Section 10.05(b),
Section 10.05(c), Section
10.05(d) or Section 10.05(e)
to the extent, but only to the extent, such increase shall cause the Conversion
Rate applicable to such Security to exceed 46.6200 shares per $1,000 principal
amount (the “BCF Adjustment Cap”); provided, however, that
the BCF Adjustment Cap shall be adjusted in the same manner in which the
Conversion Rate is to be adjusted pursuant to this Article X
for stock splits and combinations, stock dividends, reclassifications and
similar events.

10.07       Other Adjustments.

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

10.08       Adjustments for Tax Purposes.

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

10.09       Notice of Adjustment.

Whenever the
Conversion Rate is adjusted, the Company shall promptly mail to Holders at the
addresses appearing on the Registrar’s books a notice of the adjustment (which
notice may

 51
 

be
combined with any notice required by Section 10.10) and file with the Trustee an Officers’ Certificate
briefly stating the facts requiring the adjustment and the manner of computing
it.  The certificate shall be conclusive
evidence of the correctness of such adjustment.

10.10       Notice of Certain Transactions.

In the event that:

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

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

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

the Company shall
mail to Holders at the addresses appearing on the Registrar’s books and the
Trustee a written notice stating the proposed record, effective or expiration
date, as the case may be, of any transaction referred to in clause (1), (2) or (3) of this Section 10.10.  The Company shall mail such notice at least
twenty (20) days before such date; however, failure to mail such notice or any
defect therein shall not affect the validity of any transaction referred to in clause (1), (2) or (3) of this Section 10.10.

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

If any of the
following shall occur, namely: (i) any reclassification or change in the Common
Stock issuable upon conversion of Securities (other than a change in par value,
or from par value to no par value, or from no par value to par value, or as a
result of a subdivision or combination of Common Stock), (ii) any
consolidation, merger or binding share exchange to which the Company is a party
other than a merger in which the Company is the continuing Person and which
does not result in any reclassification of, or change (other than a change in
name, or par value, or from par value to no par value, or from no par value to par
value or as a result of a subdivision or combination) in, the Common Stock or
(iii) any sale, transfer, lease, conveyance or other disposition of all or
substantially all of the property or assets of the Company, in each case
pursuant to which the Common Stock would be converted into or exchanged for, or
would constitute solely the right to receive, cash, securities or other
property, then the Company or such successor or purchasing Person, as the case
may be, shall, as a condition precedent to such reclassification, change,
consolidation, merger, binding share exchange, sale, transfer, lease,
conveyance or disposition, execute and deliver to the Trustee a supplemental
indenture in form reasonably satisfactory to the Trustee providing that, at and
after the effective time of such reclassification, change, consolidation,
merger, binding share exchange, sale, transfer, lease, conveyance or
disposition, the Holder of each Security then outstanding shall have the right
to convert such Security (if otherwise convertible pursuant to this Article X) into the kind and amount of cash, securities or
other property (collectively, “Reference Property”)
receivable upon such reclassification, change, consolidation, merger, binding
share exchange, sale, transfer, lease, conveyance or disposition by a holder of
a number of shares of Common Stock equal to a fraction whose denominator is one
thousand (1,000) and

 52
 

whose
numerator is the product of the principal amount of such Security and the
Conversion Rate in effect immediately prior to such reclassification, change,
consolidation, merger, binding share exchange, sale, transfer, lease,
conveyance or disposition (assuming, if holders of Common Stock shall have the
opportunity to elect the form of consideration to receive pursuant to such
reclassification, change, consolidation, merger, binding share exchange, sale,
transfer, lease, conveyance or disposition, that the Collective Election shall
have been made with respect to such election); provided,
however, that at and after the effective
time of such reclassification, change, consolidation, merger, binding share
exchange, sale, transfer, lease, conveyance or disposition, the Principal
Return payable hereunder upon conversion of such Security shall continue to be
payable in cash and the Daily Conversion Value and Daily Net Shares shall be
calculated based on the volume-weighted average price (or, if such price is not
available, the fair value) of the Reference Property instead of the Volume-Weighted
Average Price per share of
Common Stock.  If holders of
Common Stock shall have the opportunity to elect the form of consideration to
receive pursuant to such reclassification, change, consolidation, merger,
binding share exchange, sale, transfer, lease, conveyance or disposition, then
the Company shall make adequate provision to give Holders, treated as a single
class, a reasonable opportunity to elect (the “Collective
Election”) the form of such consideration for purposes of
determining the composition of the Reference Property referred to in the
immediately preceding sentence, and once such election is made, such election
shall apply to all Holders after the effective time of such reclassification,
change, consolidation, merger, binding share exchange, sale, transfer, lease,
conveyance or disposition.  The
supplemental indenture referred to in the first sentence of this paragraph
shall provide for adjustments of the Conversion Rate which shall be as nearly
equivalent as may be practicable to the adjustments of the Conversion Rate provided
for in this Article X.  The foregoing, however, shall not in any way
affect the right a Holder of a Security may otherwise have, pursuant to Section 10.05(c) or Section 10.13,
to receive rights or warrants upon conversion of a Security.  If, in the case of any such consolidation,
merger, binding share exchange, sale, transfer, lease, conveyance or
disposition, the stock or other securities and property (including cash)
receivable thereupon by a holder of Common Stock includes shares of stock or
other securities and property of a Person other than the successor or
purchasing Person, as the case may be, in such consolidation, merger, binding
share exchange, sale, transfer, lease, conveyance or disposition, then such
supplemental indenture shall also be executed by such other Person and shall
contain such additional provisions to protect the interests of the Holders of
the Securities as the Board of Directors in good faith shall reasonably
determine necessary by reason of the foregoing (which determination shall be
described in a Board Resolution).  The
provisions of this Section 10.11 shall similarly apply to successive consolidations,
mergers, binding share exchanges, sales, transfers, leases, conveyances or
dispositions.

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

The Company shall
not become a party to any such reclassification, change, consolidation, merger,
binding share exchange, sale, transfer, lease, conveyance or disposition unless
the terms thereof are consistent with this Section 10.11.

 53
 

10.12       Trustee’s Disclaimer.

The Trustee has no
duty to determine when an adjustment under this Article
X should be made, how it should be made
or what such adjustment should be, but may accept as conclusive evidence of the
correctness of any such adjustment, and shall be protected in relying upon, the
Officers’ Certificate with respect thereto which the Company is obligated to
file with the Trustee pursuant to Section 10.09 hereof.  The
Trustee makes no representation as to the validity or value of any securities or
assets issued upon conversion of Securities, and the Trustee shall not be
responsible for the failure by the Company to comply with any provisions of
this Article X.

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

10.13       Rights Distributions Pursuant to Stockholders’ Rights Plans.

Upon conversion of
any Security or a portion thereof, the Company shall make provision for the
Holder thereof to receive, in addition to, and concurrently with the delivery
of, the consideration otherwise payable hereunder upon such conversion, the
rights described in the Rights Agreement or any other stockholders’ rights plan
the Company may have in effect at such time, unless such rights have separated
from the Common Stock at the time of such conversion, in which case the
Conversion Rate shall be adjusted upon such separation in accordance with Section 10.05(c).

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

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

The
additional consideration payable hereunder on account of any Make-Whole
Applicable Increasewith
respect to a Security surrendered for conversion is herein referred to as

 54
 

the “Make-Whole Consideration.” 
For avoidance of doubt, the amount of the Make-Whole Consideration due
upon the conversion of a Security shall be based on the Cash Settlement Averaging Period and Volume-Weighted
Average Prices applicable to such
conversion pursuant to Section 10.02.

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

	
  

  	
   

  	
  Effective Date

  	
   

  
	
  Applicable Price

  	
   

  	
  February 7, 2007

  	
   

  	
  February 15,

  2008

  	
   

  	
  February 15,

  2009

  	
   

  	
  February 15,

  2010

  	
   

  	
  February 15,

  2011

  	
   

  	
  February 15,

  2012

  	
   

  
	
  $

  	
  21.45

  	
   

  	
  10.76

  	
   

  	
  10.76

  	
   

  	
  10.76

  	
   

  	
  10.76

  	
   

  	
  10.76

  	
   

  	
  10.76

  	
   

  
	
  $

  	
  25.00

  	
   

  	
  8.09

  	
   

  	
  8.03

  	
   

  	
  7.78

  	
   

  	
  7.29

  	
   

  	
  6.38

  	
   

  	
  4.14

  	
   

  
	
  $

  	
  30.00

  	
   

  	
  5.70

  	
   

  	
  5.48

  	
   

  	
  5.08

  	
   

  	
  4.41

  	
   

  	
  3.25

  	
   

  	
  0.00

  	
   

  
	
  $

  	
  35.00

  	
   

  	
  4.20

  	
   

  	
  3.94

  	
   

  	
  3.50

  	
   

  	
  2.83

  	
   

  	
  1.75

  	
   

  	
  0.00

  	
   

  
	
  $

  	
  40.00

  	
   

  	
  3.22

  	
   

  	
  2.94

  	
   

  	
  2.52

  	
   

  	
  1.91

  	
   

  	
  1.02

  	
   

  	
  0.00

  	
   

  
	
  $

  	
  45.00

  	
   

  	
  2.54

  	
   

  	
  2.27

  	
   

  	
  1.89

  	
   

  	
  1.36

  	
   

  	
  0.65

  	
   

  	
  0.00

  	
   

  
	
  $

  	
  50.00

  	
   

  	
  2.04

  	
   

  	
  1.80

  	
   

  	
  1.46

  	
   

  	
  1.01

  	
   

  	
  0.45

  	
   

  	
  0.00

  	
   

  
	
  $

  	
  55.00

  	
   

  	
  1.68

  	
   

  	
  1.46

  	
   

  	
  1.16

  	
   

  	
  0.78

  	
   

  	
  0.34

  	
   

  	
  0.00

  	
   

  
	
  $

  	
  60.00

  	
   

  	
  1.40

  	
   

  	
  1.21

  	
   

  	
  0.95

  	
   

  	
  0.63

  	
   

  	
  0.28

  	
   

  	
  0.00

  	
   

  
	
  $

  	
  65.00

  	
   

  	
  1.19

  	
   

  	
  1.01

  	
   

  	
  0.79

  	
   

  	
  0.52

  	
   

  	
  0.23

  	
   

  	
  0.00

  	
   

  
	
  $

  	
  70.00

  	
   

  	
  1.02

  	
   

  	
  0.86

  	
   

  	
  0.66

  	
   

  	
  0.43

  	
   

  	
  0.20

  	
   

  	
  0.00

  	
   

  
	
  $

  	
  75.00

  	
   

  	
  0.88

  	
   

  	
  0.74

  	
   

  	
  0.57

  	
   

  	
  0.37

  	
   

  	
  0.18

  	
   

  	
  0.00

  	
   

  
	
  $

  	
  80.00

  	
   

  	
  0.76

  	
   

  	
  0.64

  	
   

  	
  0.49

  	
   

  	
  0.32

  	
   

  	
  0.16

  	
   

  	
  0.00

  	
   

  

 

provided,
however, that:

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

(ii)     if the actual Applicable Price of such Make-Whole
Fundamental Change is greater than $80.00 per share (subject to adjustment as
provided in Section 10.14(B)(iii)),
or if the actual Applicable Price of such Make-Whole Fundamental Change is less
than $21.45 per share (subject to adjustment as provided in Section 10.14(B)(iii)), then the Make-Whole
Applicable Increase shall be equal to zero (0);

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

 55
 

be in effect, in accordance with this Article X, immediately after such
adjustment to the Conversion Rate;

(iv)    each Make-Whole Applicable Increase amount set
forth in the table above shall be adjusted in the same manner in which, and for
the same events for which, the Conversion Rate is to be adjusted pursuant to Section 10.01 through Section 10.13; and

(v)     in no event shall the Conversion Rate applicable
to any Security be increased pursuant to this Section
10.14 to the extent, but only to the extent, such increase shall
cause the Conversion Rate applicable to such Security to exceed 46.6200 shares
per $1,000 principal amount (the “BCF
Make-Whole Cap”); provided, however, that the BCF Make-Whole Cap shall be adjusted in
the same manner in which, and for the same events for which, the Conversion
Rate is to be adjusted pursuant to this Article
X.

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

(D)          The Make-Whole
Consideration due upon a conversion of a Security by a Holder shall be paid as
soon as practicable after the Conversion Date of such conversion, but in no event
later than the third (3rd) Business Day after the later of (1) the date such
Holder surrenders such Security for such conversion; (2) the last Trading Day
in the applicable Cash Settlement Averaging Period; and (3) the Effective Date
of the applicable Make-Whole Fundamental Change.  The consideration in which the
Make-Whole Consideration is payable shall be determined in accordance herewith,
including, without limitation, in accordance with Section 10.02 and, to the extent applicable, Section 10.11.

 56
 

(E)           At least thirty (30) calendar days before the anticipated
effective date of each proposed Make-Whole Fundamental Change, the Company
shall mail to each Holder, in accordance with Section 10.2 of the Base
Indenture, written notice of, and shall publicly announce, through a reputable
national newswire service, the anticipated effective date of such proposed
Make-Whole Fundamental Change.  Each such
notice and announcement shall also state that, in connection with such
Make-Whole Fundamental Change, the Company shall increase, in accordance
herewith, the Conversion Rate applicable to Securities entitled as provided
herein to such increase (along with a description of how such increase shall be
calculated and the time periods during which Securities must be surrendered in
order to be entitled to such increase).  No later than the third
Business Day after the Effective Date of each Make-Whole Fundamental Change, the
Company shall mail, in accordance with Section 10.2 of the Base Indenture,
written notice of, and shall publicly announce, through a reputable national
newswire service, such Effective Date and the Make-Whole Applicable Increase
applicable to such Make-Whole Fundamental Change.

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

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

XI.           MISCELLANEOUS

Except as
otherwise set forth in this Article XI, the
following provisions shall be in addition to the provisions set forth in
Article X of the Base Indenture.

11.01       Trust Indenture Act Controls.

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

11.02       Legal Holidays.

This Section 11.02
shall apply to the Securities in lieu of Section 10.7 of the Base Indenture.

If a payment date
is a Legal Holiday at a place of payment, payment may be made at that place on
the next succeeding day that is not a Legal Holiday, and no interest shall
accrue on that payment for the intervening period.

11.03       Duplicate 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.  Delivery of an

 57
 

executed
counterpart by facsimile shall be effective as delivery of a manually executed
counterpart thereof.

11.04       Governing Law.

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

11.05       Calculations in Respect of the Securities.

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

11.06       Notices.

This Section 11.06 shall apply to the Securities in lieu of
Section 10.2 of the Base Indenture.

Any
notice of communication by the Company, the Trustee (or, solely with respect to
Section 10.02(A) the Hedge Counterparties) to the other parties is duly given
if in writing and delivered in person, mailed by first-class mail or sent by
facsimile with confirmation or receipt:

If to the Company:

Conceptus, Inc.

331 East Evelyn Avenue

Mountain View, CA 94041

Attention:  Chief Financial Officer

Fascimile:  (650) 627-4748

If to the Trustee:

Wells Fargo Bank, National Association

Corporate Trust and Escrow Services

707 Wilshire Blvd, 17th Floor

Los Angeles, CA 90017

Attn: Maddy Hall

Facsimile: (213) 614-2588

If to the Hedge
Counterparties (solely with respect to Section 10.02(A)):

Hedge
Counterparty #1:

UBS
AG, London Branch

 58
 

c/o UBS Securities LLC

299 Park Avenue

New York, NY 10171

Attn:  Adam Frieman

Facsimile:  (212) 821-4610

With a
copy to:

Equities Legal Department

677 Washington Boulevard

Stamford, CT 06901

Attn:  David Kelly and Gordon Kiesling

Facsimile:  (203) 719-5627

and

Equities Volatility Trading

677 Washington Boulevard

Stamford, CT 06901

Attn:  Namuk Cho and Brian Ward

Facsimile:  (203) 719-7910

Hedge
Counterparty #2:

Societe Generale

Tour Societe Generale

17 Cours Valmy

92987 Paris La-Defense cedex

FRANCE

Attn:  Candice Berguin

Facsimile:  +33-1-4692-4670

With a
copy to:

SG Americas Securities, LLC

1221 Avenue of the Americas, 6th Floor

New York, NY 10020

Attn:  Mike Collins, Managing Director

Facsimile: (212) 278-5891

and

Societe Generale

Corporate and Investment Banking

1221 Avenue of the Americas, 6th Floor

New York, NY 10020

 59
 

Attn:  Vice
President and Counsel

Facsimile: (212) 278-5891

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

 60

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

	
  

  	
  Conceptus, Inc.

  
	
   

  
	
   

  
	
   

  	
  By:

  	
  /s/ Gregory E. Lichtwardt

  
	
   

  	
  Name: Gregory E. Lichtwardt

  
	
   

  	
  Title: Executive Vice President

  
	
   

  
	
   

  
	
   

  	
  Wells Fargo Bank, National
  Association

  
	
   

  
	
   

  
	
   

  	
  By:

  	
  /s/ Maddy Hall

  
	
   

  	
  Name: Maddy Hall

  
	
   

  	
  Title: Assistant Vice President

  

 

EXHIBIT A

[Face of Security]

CONCEPTUS, INC.

Certificate
No.                

[INSERT GLOBAL SECURITY LEGEND AS REQUIRED]

2.25% Convertible Senior Note due 2027

CUSIP No.                          

Conceptus, Inc., a
Delaware corporation (the “Company”), for
value received, hereby promises to pay to Cede & Co., or its registered
assigns, the principal sum of                                 
dollars ($                         )
on February 15, 2027 and to pay interest thereon, as provided on the reverse
hereof, until the principal and any unpaid and accrued interest are paid or
duly provided for.

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

Record Dates:
February 1 and August 1.

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

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

	
  

  	
  Conceptus, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
					

 

 A-1
 

TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

This is one of the Securities referred to

in the within-mentioned Indenture.

	
  Wells Fargo Bank, National Association, as Trustee

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
					

 

 A-2
 

[REVERSE OF
SECURITY]

CONCEPTUS, INC.

2.25%
Convertible Senior Note due 2027

1.             Interest.  Conceptus,
Inc., a Delaware corporation (the “Company”),
promises to pay interest on the principal amount of this Security at the rate per annum shown above. 
The Company will pay interest, payable semi-annually in arrears, on
February 15 and August 15 of each year, with the first payment to be made on
August 15, 2007.  Interest on the
Securities will accrue on the principal amount from, and including, the most
recent date to which interest has been paid or provided for or, if no interest
has been paid, from, and including, February 12, 2007, in each case to, but
excluding, the next interest payment date or Maturity Date, as the case may
be.  Interest will be computed on the
basis of a 360-day year of twelve 30-day months.

2.             Maturity.  The
Securities will mature on February 15, 2027.

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

4.             Paying Agent, Registrar, Conversion Agent.  Initially, Wells Fargo Bank, National
Association (the “Trustee”) will
act as Paying Agent, Registrar, Bid Solicitation Agent and Conversion
Agent.  The Company may change any Paying
Agent, Registrar, Bid Solicitation Agent or Conversion Agent without notice.

5.             Indenture.  The
Company issued the Securities under a base indenture (the “Base
Indenture”), dated as of February 12, 2007, between the Company and
the Trustee, as amended, supplemented or otherwise modified by the Supplemental
Indenture No. 1 (the “Supplemental Indenture”),
dated as of February 12, 2007 (the “Indenture”)
between the Company and the Trustee (the Base Indenture, as amended,
supplemented or otherwise modified by the

 A-3
 

Supplemental
Indenture, the “Indenture”).  The terms of the Securities include those
stated in the Indenture and those made part of the Indenture by reference to
the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) (the “TIA”) as amended and in effect from time to time.  The Securities are subject to all such terms,
and Holders are referred to the Indenture and the TIA for a statement of such
terms.  The Securities are general
unsecured senior obligations of the Company limited to $75,000,000 aggregate
principal amount ($86,250,000 if the Underwriter has elected to exercise in
full the Option to purchase up to an additional $11,250,000 aggregate principal
amount of the Securities), except as otherwise provided in the Indenture (except
for Securities issued in substitution for destroyed, mutilated, lost or stolen
Securities).  Terms used herein without
definition and which are defined in the Indenture have the meanings assigned to
them in the Indenture.

6.             Optional Redemption.

The Company shall have the right, at the Company’s
option, at any time, and from time to time, on a Redemption Date on or after
February 15, 2012, to redeem all or any part of the Securities at a price
payable in cash equal to one hundred percent (100%) of the principal amount of
the Securities to be redeemed, plus accrued and unpaid interest, if any, to,
but excluding, the Redemption Date.

Upon surrender to the Paying Agent of a Security
subject to Redemption, such Security shall be paid, to the Holder surrendering
such Security, at the Redemption Price plus accrued and unpaid interest to, but
excluding, the Redemption Date, unless the Redemption Date is after a record
date for the payment of an installment of interest and on or before the related
interest payment date, in which case accrued and unpaid interest to, but
excluding, such interest payment date will be paid, on such interest payment
date, to the Holder of record of such Security at the close of business on such
record date, and the Holder surrendering such Security shall not be entitled to
any such interest unless such Holder was also the Holder of record of such
Security at the close of business on such record date.  The Company will make at least ten (10) semi-annual
interest payments with respect to the Securities prior to redeeming any
Securities under this paragraph 6.

7.             Notice of Redemption. 
Notice of Redemption will be mailed at least thirty (30) days but not
more than sixty (60) days before the Redemption Date to each Holder of
Securities to be redeemed at its address appearing in the security
register.  Securities in denominations
larger than $1,000 principal amount may be redeemed in part but only in
integral multiples of $1,000 principal amount.

8.             Purchase by the Company at the Option of the Holder.  Subject to the terms and conditions of the
Indenture, the Company shall become obligated to purchase, at the option of
each Holder, the Securities held by such Holder on February 15, 2012, February
15, 2017 and February 15, 2022 (each, an “Option Purchase Date”)
at an Option Purchase Price, payable in cash, equal to one hundred percent
(100%) of the principal amount of the Securities to be purchased, plus accrued
and unpaid interest, if any, to, but excluding, the applicable Option Purchase
Date, upon delivery of a Purchase Notice containing the information set forth
in the Indenture, at any time from the opening of business on the date that is
twenty (20) Business Days prior to the applicable Option Purchase Date until
the close of business on the Business Day

 A-4
 

immediately
preceding the applicable Option Purchase Date and upon delivery of the
Securities to the Paying Agent by the Holder as set forth in the Indenture; provided, however, that
that such accrued and unpaid interest shall be paid to the Holder of record of
such Securities at the close of business on the record date immediately
preceding such Option Purchase Date

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

10.           Conversion.

Subject
to earlier Redemption, Purchase at Holder’s Option or Repurchase Upon
Fundamental Change, Holders may surrender Securities in integral multiples of
$1,000 principal amount for conversion into shares of Common Stock in
accordance with Article X of the Indenture at any
time prior to stated maturity.

Conversion
Based on Closing Sale Price of Common Stock.  Subject to earlier Redemption, Purchase at
Holder’s Option or Repurchase Upon Fundamental Change, Holders may surrender
Securities in integral multiples of $1,000 principal amount for conversion into
cash and, if applicable, shares of Common Stock on any Business Day of a
calendar quarter after the calendar quarter ending March 31, 2007, if the
Closing Sale Price for each of twenty (20) or more Trading Days in a period of
thirty (30) consecutive Trading Days ending on the last Trading Day of the
immediately preceding calendar quarter exceeds one hundred and twenty percent
(120%) of the Conversion Price in effect on the last Trading Day of the
immediately preceding calendar quarter. 
Solely for purposes of determining whether the Securities shall have become
convertible pursuant to this paragraph, the Board of Directors shall, in its
good faith determination, which shall be described in a Board Resolution, make
appropriate adjustments to the Closing Sale Prices and/or such Conversion Price
used to determine whether the Securities shall have become convertible pursuant
to this paragraph to account for any
adjustments to the Conversion Rate which shall have become effective, or any
event requiring an adjustment to the Conversion Rate where the Ex Date of such event occurs, during the period of thirty
(30) consecutive Trading Days ending on the last Trading Day of the
immediately preceding calendar quarter.

 A-5
 

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

Conversion
Based on Redemption.  A
Security, or portion of a Security, which has been called for Redemption
pursuant to paragraph 6 may be surrendered in
integral multiples of $1,000 principal amount for conversion into cash and, if
applicable, shares of Common Stock; provided, however, that such Security or portion thereof may be
surrendered for conversion pursuant to this paragraph only until the close of
business on the Business Day immediately preceding the Redemption Date.

Conversion
Upon Certain Distributions. 
Subject to earlier Redemption, Purchase at Holder’s Option or Repurchase
Upon Fundamental Change, if the Company takes any action, or becomes aware of
any event, that would require an adjustment to the Conversion Rate pursuant to Sections 10.05(b), 10.05(c), 10.05(d) or 10.05(e) of the
Indenture, the Securities may be surrendered for conversion in integral
multiples of $1,000 principal amount into cash and, if applicable, shares of
Common Stock beginning on the date the Company mails the notice to the Holders
as provided in Section 10.10 of the Indenture
(or, if earlier, the date the Company is required to mail such notice) and at
any time thereafter until the close of business on the Business Day immediately
preceding the Ex Date (as defined in Section 10.05(g)
of the Indenture) of the applicable transaction or until the Company announces
that such transaction will not take place.

Conversion Upon Occurrence of
Certain Corporate Transactions.  Subject to earlier Redemption, Purchase at
Holder’s Option or Repurchase Upon Fundamental Change, if either:

(i)            a Fundamental Change
occurs; or

 A-6
 

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

then, in each case, the Securities may be surrendered
for conversion into cash and, if applicable, shares of Common Stock at any time
during the period
that begins on, and includes, the date that is thirty (30) calendar days prior
to the date originally announced by the Company as the anticipated effective
date of such Fundamental Change, consolidation, merger or binding share
exchange (which anticipated effective date the Company shall disclose,
in good faith, in the written notice, public announcement and publication
referred to in Section 10.01(D) of the Indenture)
and ends on, and includes, the
date that is thirty (30) calendar days after the actual effective date of such
Fundamental Change, consolidation, merger or binding share exchange; provided, however, that
if such Fundamental Change, consolidation, merger or binding share exchange
shall also constitute a Make-Whole Fundamental Change, then the
Securities may also be surrendered for conversion into cash and, if applicable,
shares of Common Stock at any time during
the Make-Whole Conversion Period applicable to such Make-Whole Fundamental
Change; provided, further,
that if such transaction is a Fundamental Change, then the Securities
may also be surrendered for conversion into cash and, if applicable, shares of
Common Stock at any time until, and including, the Fundamental Change
Repurchase Date applicable to such Fundamental
Change; provided, further, that if the Company
shall announce a transaction that shall cause the Securities to become
convertible pursuant to this paragraph, but such transaction shall not be
consummated, then on the date the Company shall announce that such transaction
will not occur, the Securities shall cease to be convertible pursuant to this
paragraph on account of such announcement of such transaction (it being
understood that nothing in this proviso shall affect whether the Securities
shall become convertible pursuant to this paragraph on account of another
announcement by the Company).

Conversion from and including
December 15, 2011 to and including February 15, 2012 and on or after February
15, 2025.  The
Securities may be surrendered for conversion into cash and, if applicable,
shares of Common Stock at any time from, and including, December 15, 2011 to,
and including, February 15, 2012 and at any time on or after February 15, 2025.

Notwithstanding anything
herein to the contrary, the right to convert the Securities pursuant to Article X of the Indenture shall terminate at the close of business
on the Business Day immediately preceding the Maturity Date.

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

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

 A-7
 

The initial Conversion Rate is 35.8616 shares of
Common Stock per $1,000 principal amount of Securities (which results in an
effective initial Conversion Price of approximately $27.89 per share) subject
to adjustment in the event of certain circumstances as specified in the
Indenture.  The Company will deliver a
check in lieu of any fractional share. 
On conversion, no payment or adjustment for any unpaid and accrued
interest on the Securities will be made. 
If any Holder surrenders a Security for conversion after the close of
business on the record date for the payment of an installment of interest and
prior to the related interest payment date, then, notwithstanding such
conversion, the interest payable with respect to such Security on such interest
payment date shall be paid on such interest payment date to the Holder of
record of such Security at the close of business on such record date; provided, however, that such Security, when surrendered for
conversion, must be accompanied by payment to the Conversion Agent on behalf of
the Company of an amount equal to the interest payable on such interest payment
date on the portion so converted unless either (i) such Security is called for
Redemption pursuant to Section 3.04 of
the Indenture and paragraphs 6 and 7 hereof; (ii) the Company shall have, in respect of a
Fundamental Change, specified a Fundamental Change Repurchase Date which is
after such record date and on or before such interest payment date; or (iii)
such Security is surrendered for conversion after the close of business on the
record date immediately preceding the Maturity Date; provided
further, however, that, if the Company shall have, prior to the
Conversion Date with respect to a Security, defaulted in a payment of interest
on such Security, then in no event shall the Holder of such Security who
surrenders such Security for conversion be required to pay such defaulted
interest or the interest that shall have accrued on such defaulted interest
pursuant to Section 2.13 of the Base Indenture of the Indenture or otherwise
(it being understood that nothing in paragraph shall affect the Company’s
obligations under Section 2.13 of the Base Indenture).

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

11.           Denominations, Transfer, Exchange.  The Securities are in registered form,
without coupons, in denominations of $1,000 principal amount and integral
multiples of $1,000 principal amount. 
The transfer of Securities may be registered and Securities may be exchanged
as provided in the Indenture.  The
Registrar may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents.  No
service charge shall be made for any such registration of transfer or exchange,
but the Company may require payment of a sum sufficient to cover any tax or
similar governmental charge that may be imposed in connection with certain
transfers or exchanges.  The Company or
the Trustee, as the case may be, shall not be required to register the transfer
of or exchange any Security (i) during a period beginning at the opening of
business fifteen (15) days before the mailing of a notice of redemption of the
Securities selected for Redemption under Section 3.04 of the Indenture and ending at the close of business on
the day of such mailing or (ii) for a period of fifteen (15) days before selecting,
pursuant to Section 3.03 of the Indenture,
Securities to be redeemed or (iii) that has been selected for Redemption or

 A-8
 

for which a
Purchase Notice or Repurchase Notice has been delivered, and not withdrawn, in
accordance with the Indenture, except the unredeemed or unrepurchased portion
of Securities being redeemed or repurchased in part.

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

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

14.           Amendments, Supplements and Waivers.  Subject to certain exceptions, the Indenture
or the Securities may be amended or supplemented with the consent of the
Holders of at least a majority in aggregate principal amount of the outstanding
Securities, and certain existing Defaults or Events of Default may be waived
with the consent of the Holders of a majority in aggregate principal amount of
the Securities then outstanding.  In
accordance with the terms of the Indenture, the Company, with the consent of
the Trustee, may amend or supplement this Indenture or the Securities without
notice to or the consent of any Holder: (i) to comply with Sections
5.01 and 10.11
of the Indenture; (ii) to secure the obligations of the Company in respect of
the Securities; (iii) to add to the covenants of the Company described in the
Indenture for the benefit of Securityholders or to surrender any right or power
conferred upon the Company; and (iv) to make provisions with respect to
adjustments to the Conversion Rate as required by the Indenture or to increase
the Conversion Rate in accordance with the Indenture.  In addition, the Company and the Trustee may
enter into a supplemental indenture without the consent of Holders of the
Securities to (i) cure any ambiguity, defect, omission or inconsistency in the
Indenture in a manner that does not, individually or in the aggregate with all
other modifications made or to be made to the Indenture, adversely affect the
rights of any Holder; or (ii) conform the Indenture to the description of the
Securities contained in the Prospectus Supplement of the Company, dated
February 6, 2007 and filed with the SEC on February 7, 2007 (File No.
333-139455).

15.           Defaults and Remedies.

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

 A-9
 

Event of Default
specified in Section 6.01(viii) or (ix) of the Indenture with respect to the Company
(excluding, for purposes of this sentence, an Event of Default specified in Section 6.01(viii) or (ix) of the Indenture solely with respect to a Significant
Subsidiary of the Company or any group of the Company’s then-existing
Subsidiaries that in the aggregate would constitute a Significant Subsidiary of
the Company) occurs, the principal of, and accrued and unpaid interest on, all
the Securities shall ipso facto become
and be immediately due and payable without any declaration or other act on the
part of the Trustee or any Holder.  The
Holders of a majority in aggregate principal amount of the Securities then
outstanding by written notice to the Trustee may rescind or annul an
acceleration and its consequences if (A) the rescission would not conflict with
any order or decree, (B) all existing Events of Default, except the nonpayment
of principal or interest that has become due solely because of the
acceleration, have been cured or waived and (C) all amounts due to the Trustee
under Section 7.7 of the Base Indenture have been paid.

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

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

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

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

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

 A-10
 

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

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

Conceptus, Inc.

331 East Evelyn Avenue

Mountain View, CA 94041

 A-11
 

[FORM OF ASSIGNMENT]

	
  I or we assign to

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PLEASE INSERT SOCIAL SECURITY OR 

  OTHER IDENTIFYING NUMBER

  	
   

  	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  (please print or type name and address)

  
	
   

  
	
   

  
	
   

  
	
   

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

  
	
   

  
	
   

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

  
	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
							

 

 A-12
 

CONVERSION NOTICE

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

  
	
   

  
	
   

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

  
	
   

  
	
   

  
	
  $                                  

  
	
   

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

  
	
   

  
	
   

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

  
	
   

  
	
   

  
	
   

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

  
	
   

  
	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  	
  Signature(s):

  	
   

  
	
   

  
	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature(s) guaranteed by:

  	
   

  
	
   

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

  
							

 

 A-13
 

PURCHASE/REPURCHASE NOTICE

Certificate
No. of Security:                                 

If you want to
elect to have this Security purchased by the Company pursuant to Section 3.08 of the
Supplemental Indenture, check the box: o

If you want to
elect to have this Security purchased by the Company pursuant to Section 3.09 of the
Supplemental Indenture, check the box: o

If you want to
elect to have only part of this Security purchased by the Company pursuant to Sections 3.08 or 3.09 of the
Supplemental Indenture, as applicable, state the principal amount to be so
purchased by the Company:

$                                                                    

(in an integral multiple of $1,000)

	
  Date:

  	
   

  	
   

  	
  Signature(s):

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
  Signature(s) guaranteed by:

  	
   

  
	
   

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

  

 

 A-14
 

SCHEDULE A

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

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

	
  Date of Exchange

  	
   

  	
  Amount of decrease

  in Principal amount

  of this Global

  Security

  	
   

  	
  Amount of Increase

  in Principal amount

  of this Global

  Security

  	
   

  	
  Principal amount of

  this Global

  Security following

  such decrease

  or increase

  	
   

  	
  Signature or

  authorized signatory

  of Trustee or Note

  Custodian

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(1) This is included in Global Securities only.

 A-15

EXHIBIT B

FORM OF LEGEND FOR
GLOBAL SECURITY

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

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

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

TRANSFERS OF THIS GLOBAL SECURITY
SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF CEDE
& CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS
OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN
ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN SECTION 2.10 OF THE SUPPLEMENTAL
INDENTURE.

 B-1

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