Document:

Exhibit 4.3

 

OFFICERS’ CERTIFICATE

 

The undersigned, D. Hunt Ramsbottom, Jr. and Geoffrey S. Flagg, do
hereby certify that they are the duly appointed Chief Executive Officer and
Chief Accounting Officer, respectively, of RENTECH, INC., a Colorado
corporation (the “Company”). Each of the
undersigned also hereby certifies, pursuant to the Indenture, dated as of April 18,
2006, among the Company, the Guarantors named therein and Wells Fargo Bank,
National Association, as Trustee (the “Base Indenture”),
that:

 

A.                                   Pursuant to resolutions duly adopted by the Board
of Directors (as defined in the Base Indenture) on March 31, 2006 and the
Pricing Committee of the Company on April 11, 2006, a series of
Securities (as defined in the Base Indenture) to be issued under the Base
Indenture has been established (the “Notes”),
with the following terms (defined terms used herein and not otherwise defined
herein have the meanings set forth in the Base Indenture):

 

(1)                                  The
Notes shall constitute a series of Securities having the title “4.00%
Convertible Senior Notes due 2013.”

 

(2)                                  Definitions. In addition to the
definitions set forth in the Base Indenture and elsewhere in this Officers’
Certificate, the terms set forth below shall have the following meanings:

 

“Applicable Stock Price” means, in respect
of any Conversion Date, the arithmetic average of the daily Volume-weighted
Average Prices of the Common Stock over the Cash Settlement Averaging Period.

 

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

 

“Capital Stock” means: (a) in the case
of a corporation, corporate stock; (b) in the case of an association or
business entity, any and all shares, interests, participations, rights or other
equivalents (however designated) of corporate stock; (c) in the case of a
partnership or limited liability company, partnership interests (whether
general or limited) or membership interests; or (d) any other interest or
participation that confers on a person the right to receive a share of the
profits and losses of, or distributions of assets of, the issuing person

 

“Cash Settlement Averaging Period” means the
fifteen Trading Day period:

 

(a)                                  ending
on the second Trading Day preceding the redemption date, if the Company has
called the Notes for redemption (regardless of whether the Company has
irrevocably elected net share settlement);

 

(b)                                 ending
on the second Trading Day preceding the Maturity Date, with respect to
conversion notices received during the period beginning 20 Trading Days preceding
the Maturity Date and ending one Trading Day preceding the Maturity Date
(whether or not the Company irrevocably elected to make a cash payment of
principal upon conversion);

 

 

(c)                                  beginning
on the Trading Day following the receipt by the Company of a Holder’s
conversion notice, if the Company has irrevocably elected to make a cash
payment of principal upon conversion and not previously called the Notes for
redemption; provided, however, that if the Company has irrevocably elected to
make a cash payment of principal upon conversion and such Holder submits its
conversion notice during the period beginning 20 Trading Days preceding the
Maturity Date and ending one Trading Day preceding the Maturity Date, the Cash
Settlement Averaging Period shall end on the second Trading Day preceding the
Maturity Date; and

 

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

 

“Closing Sale Price” as of any date for any
security means the closing per share sale price of such security, or if no sale
price is reported, the average of the bid and ask prices or, if more than one
in either case, the average of the average bid and the average ask prices, on
that date as reported in composite transactions on the principal United States
securities exchange on which such security is traded or, if such security is
not listed on a United States national or regional securities exchange, as
reported by The Nasdaq National Market or any successor or similar quotation
service, or if such security is not listed on any such exchange or so quoted,
as available in any other over-the-counter market or, if not available in any
over-the counter market, as determined in good faith by the Board of Directors.

 

“Common Stock” means the common stock, par
value $0.01 per share, of the Company.

 

“Conversion Agent” means the office or
agency where Notes may be presented for conversion.

 

“Conversion Date” means the date on which
the Note and all of the items required for conversion shall have been delivered
to the Conversion Agent and the requirements for conversion have been met.

 

“Conversion Price” means, as of any date of
determination, the product obtained by dividing $1,000 by the Conversion Rate
in effect on such date.

 

“Conversion Rate” means the number of shares
of Common Stock issuable upon conversion of a Note.

 

“Conversion Value” of a Note means the
product of the Closing Sale Price of the Common Stock on any date of
determination multiplied by the Conversion Rate in effect on such date.

 

“Coupon Make-Whole Payment” means an amount
per Note to be redeemed equal to the present value, computed using a discount
rate equal to the Treasury Yield plus 50 basis points, at the date of
redemption of all remaining scheduled payments of interest on such Note through
April 15, 2011.

 

2

 

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

 

“Fundamental Change” means the occurrence of
any of the following:

 

(a)                                  any person or group
files a Schedule 13D or Schedule TO, or any successor schedule, form or
report under the Exchange Act, disclosing, or the Company otherwise becomes
aware, that such person or group is or has become the beneficial owner,
directly or indirectly, of shares of the Company’s voting stock representing
50% or more of the total voting power of all outstanding classes of the Company’s
voting stock or has the power, directly or indirectly, to elect a majority of
the members of the board of directors of the Company;

 

(b)                                 the Company
consolidates with, or merges with or into, another person or the Company sells,
assigns, conveys, transfers, leases or otherwise disposes of all or
substantially all of its assets, or any person consolidates with, or merges
with or into, the Company, in any such event other than pursuant to a
transaction in which the persons that beneficially owned directly or
indirectly, the shares of the Company’s voting stock immediately prior to such
transaction beneficially own, directly or indirectly, shares of voting stock
representing a majority of the total voting power of all outstanding classes of
voting stock of the surviving or transferee person in substantially the same
proportion amongst themselves as such ownership immediately prior to such
transaction;

 

(c)                                  a majority of the
members of the Company’s board of directors are not continuing directors; or

 

(d)                                 the Common Stock
ceases to be listed on a national securities exchange or quoted on The Nasdaq
National Market, any successor or another established automated
over-the-counter trading market in the United States.

 

Notwithstanding
the foregoing, a merger or consolidation will be deemed not to be a Fundamental
Change if at least 90% of the consideration (excluding cash payments for
fractional shares and cash payments pursuant to dissenters’ appraisal rights)
in the merger or consolidation constituting the Fundamental Change consists of
common stock traded on a national securities exchange or quoted on The Nasdaq
National Market, any successor or another established automated
over-the-counter trading market in the United States (or which will be so
traded or quoted when issued or exchanged in connection with such merger or
consolidation) and as a result of such transaction or transactions the Notes
become convertible solely into such common stock pursuant to paragraph 22
below.

 

For purposes
of the definition of Fundamental Change:

 

(i)                                     “person”
and “group” shall have the meanings given to them for purposes of Sections 13(d) and
14(d) of the Exchange Act or any successor provisions, and the term “group”
includes any group acting for the purpose of acquiring, holding or disposing of

 

3

 

securities within the meaning of Rule 13d-5(b)(1) under
the Exchange Act, or any successor provision;

 

(ii)                                  a
“beneficial owner” will be determined in accordance with Rule 13d-3 under
the Exchange Act, as in effect on the date of the Indenture;

 

(iii)                               “beneficially
own” and “beneficially owned” have meanings correlative to that of beneficial
owner;

 

(iv)                              “board
of directors” means the board of directors or other governing body charged with
the ultimate management of any person;

 

(v)                                 “continuing
director” means, as of any date of determination, any member of the Company’s
board of directors who was a member of such board of directors on the date of
the Indenture, or was nominated for election or elected to such board of
directors with the approval of: (1) a majority of the continuing directors
who were members of such board at the time of such nomination or election or (2) a
nominating committee, a majority of which committee were continuing directors
at the time of such nomination or election; and

 

(vi)                              “voting
stock” means any class or classes of Capital Stock or other interests then
outstanding and normally entitled (without regard to the occurrence of any
contingency) to vote in the election of the board of directors, managers or
trustees.

 

“Fundamental Change Effective Date” means
the date on which a Fundamental Change becomes effective.

 

“Indenture” shall have the meaning ascribed
to it in the Base Indenture.

 

“Market Price” means, as of any date of
determination, the average of the Closing Sale Prices of the Common Stock for
the twenty Trading Day period ending on the third Business Day prior to such
date of determination (if the third Business Day prior to such date of
determination is a Trading Day, or if not, then on the last Trading Day prior
to the third Business Day).

 

“Maturity Date” means April 15, 2013.

 

“Public Acquirer Change in Control” means
any transaction described in clause (a) or clause (b) of the
definition of Fundamental Change in which the acquirer, or any entity that is a
direct or indirect “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act) of more than 50% of the aggregate ordinary voting power of all
shares of such acquirer’s Capital Stock that are entitled to vote generally in
the election of directors, but in each case other than the Company, has a class of
common stock (the “Acquirer Common Stock”)
traded on a United States national securities exchange or quoted on the Nasdaq
National Market, any successor or another established automated
over-the-counter trading market in the United States or which will be so traded
or quoted when issued or exchanged in connection with such change of control.

 

4

 

“Shareholders Rights Plan” means the amended
Rights Agreement, effective as of January 18, 2005, by and between the
Company and Computershare Trust Company, Inc., as rights agent, as such
agreement may be amended from time to time, and any replacement
shareholder rights plan.

 

“Trading Day” means, with respect to any
security, (a) if such security is listed or admitted for trading on the
New York Stock Exchange, a day on which the New York Stock Exchange is open for
business; (b) if such security is quoted on the Nasdaq National Market, a
day on which trades may be made on the Nasdaq National Market; or (c) if
the applicable security is not so listed or admitted for trading on the New
York Stock Exchange and not so quoted on the Nasdaq National Market, a day on
which the principal U.S. national or regional exchange on which such security
is listed or admitted for trading is open for business, in any such case
provided that there is no suspension or limitation of more than one half hour
imposed during such day on trading in such security or securities relating to
such security.

 

“Trading Price” means, on any date of
determination, the average of the secondary bid quotations per Note obtained by
the Trustee for $2,000,000 principal amount of the Notes at approximately 3:30 p.m.,
New York City time, on such date of determination from three independent
nationally recognized securities dealers selected by the Company; provided, that if at least three such bids
cannot reasonably be obtained, but two bids can reasonably be obtained, then
the average of these two bids will be used; provided,
further, that if at least two bids cannot reasonably be obtained,
but one bid can reasonably be obtained, this one bid will be used. If the
Trustee cannot reasonably obtain at least one bid for $2,000,000 principal
amount of the Notes from a nationally recognized securities dealer, then the
Trading Price per $1,000 principal amount of the Notes will be deemed to be
less than 98% of the Conversion Value.

 

“Treasury Yield” means the yield to maturity
at the time of computation of the Coupon Make-Whole Payment of United States
Treasury securities with a constant maturity (as compiled and published in the
most recent Federal Reserve Statistical Release H.15 (519) that has become
publicly available at least two Business Bays prior to the redemption date (or,
if such Statistical Release is no longer published, any publicly available
source for similar market data)) most nearly equal to the then-remaining term
to April 15, 2011; provided, however,
that if the then-remaining term to April 15, 2011 is not equal to the
constant maturity of a United States Treasury security for which a weekly
average yield is given, the Treasury Yield shall be obtained by linear
interpolation (calculated to the nearest one-twelfth of a year) from the weekly
average yields of United States Treasury securities for which such yields are
given, except that if the then-remaining term to April 15, 2011 is less
than one year, the weekly average yield on actually traded United States
Treasury securities adjusted to a constant maturity of one year shall be used.

 

“Volume-weighted Average Price” means, for
any given Trading Day, the daily volume-weighted average price for the Common
Stock on the principal trading market on which it trades during the period
beginning at 9:30:01 a.m., New York City time (or such other time as is
the applicable official open of trading) and ending at 4:00:00 p.m., New
York City time (or such other time as is the official close of trading), as
reported by Bloomberg Financial Services (or any successor service) through its
“Volume at Price” (RTK [Equity] VAP [Go]) functions or,

 

5

 

if such price
is not available, the market value per share of Common Stock on such day as
determined by a nationally recognized independent investment banking firm
retained by the Company for this purpose. The Volume-weighted Average Price
shall be rounded to the nearest whole cent.

 

(3)                                  The
aggregate principal amount of Notes that may be authenticated and
delivered under the Indenture (except for Notes authenticated and delivered
upon registration of transfer of, or in exchange for, or in lieu of, other
Notes pursuant to Section 2.7, 2.8, 2.11, 3.6 or 9.6 of the Base Indenture
or paragraphs 10(i) or 22(c) below) shall be $50,000,000 provided, however, that if, pursuant to
the terms of the Underwriting Agreement, dated as of April 11, 2006,
between the Company and the underwriters named therein (the “Underwriters”) relating to the offering of
the Notes, the Underwriters exercise their over-allotment option, then the
aggregate principal amount of Notes that may be authenticated and
delivered under the Indenture shall be increased to the extent of such
exercise, up to a maximum of $57,500,000.

 

(4)                                  The
entire outstanding principal of the Notes shall be payable on the Maturity
Date.

 

(5)                                  The
date from which interest shall initially accrue shall be April 18, 2006;
the “Interest Payment Dates” on
which such interest will be payable semiannually in arrears shall be April 15
and October 15 of each year, beginning October 15, 2006; the interest
payable on the Notes on any Interest Payment Date shall be paid to the Holders
on the preceding April 1 (in the case of interest payable on any April 15)
and October 1 (in the case of interest payable on any October 15)
(each a “Record Date”), except
with respect to any Notes that are converted pursuant to paragraph 22 below
prior to the corresponding Interest Payment Date; provided, however, that interest will be paid on the
Maturity Date to a person other than the Holder on the Record Date or, in
connection with a redemption at the Company’s option pursuant to paragraph 8
below or repurchase at the option of the Holders pursuant to paragraph 10
below, on the redemption date or repurchase date, as the case may be, if
it is after a Record Date but on or before the corresponding Interest Payment
Date. In any such case, the accrued and unpaid interest will be paid only to
the Holder to whom the principal amount is paid. The basis upon which interest
shall be calculated shall be that of a 360-day year consisting of twelve 30-day
months.

 

(6)                                  Payments
in respect of the Notes represented by Global Securities (including principal,
premium, if any, and interest) shall be made in immediately available funds to
the account of the Depository (or its nominee). Payments in respect of
certificated Notes will be paid by check mailed by first-class mail,
postage prepaid, to the Holders of record on the applicable Record Date at such
address as listed with the Registrar; provided,
however, that any Holder with Notes in an aggregate principal amount
in excess of $2.0 million will be paid, at such Holder’s written election, by
wire transfer of immediately available funds.

 

(7)                                  Transfer and Exchange. Section 2.7 of
the Base Indenture is modified in its entirety with respect to the Notes as
follows:

 

6

 

(a)                                  Where
Notes 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 Notes,
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 Notes 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 of the Base Indenture).

 

(b)                                 Neither
the Company nor the Registrar nor the Trustee shall be required (i) to
issue, register the transfer of, or exchange Notes for the period beginning at
the opening of business fifteen days immediately preceding the mailing of a
notice of redemption of Notes selected for redemption and ending at the close
of business on the day of such mailing, or (ii) to register the transfer
of or exchange Notes 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, or Notes for which the Holder has delivered, and
not validly withdrawn, a Fundamental Change Repurchase Notice.

 

(8)                                  Redemption.

 

(a)                                  Provisional
Redemption. At any time and from time to time prior to April 15,
2011, the Company may redeem any portion of the Notes at a redemption
price in cash equal to 100% of the principal amount of the Notes to be
redeemed, plus accrued and unpaid interest to, but not including, the
redemption date, plus the Coupon Make-Whole Payment, if in the previous 10
Trading Days ending on the Trading Day before the date of the mailing of the
provisional redemption notice the Volume-Weighted Average Price of the Common
Stock exceeds 150% of the Conversion Price for at least five consecutive
Trading Days. The Company shall make the Coupon Make-Whole Payments on all
Notes called for redemption prior to April 15, 2011, including Notes
converted after the date that the Company mails the notice of redemption. The
Coupon Make-Whole Payment for Notes converted shall not be reduced by accrued
and unpaid interest.

 

(b)                                 Optional
Redemption. The Notes shall be redeemable, in whole or in part, at
any time, and from time to time, on or after April 15, 2011, at the
Company’s option, at a redemption price in cash equal to 100% of the principal
amount of the Notes to be redeemed, plus accrued and unpaid interest to, but
not including, the redemption date.

 

(c)                                  Terms Applicable to Provisional and Optional
Redemption.

 

(i)                                     The
Company shall give at least 20 days’ but not more than 60 days’ notice of
redemption by mail to Holders. Notes called for redemption are convertible by
the Holder until the close of business on the Business Day immediately
preceding the redemption date.

 

7

 

(ii)                                  If
the Company does not redeem all of the Notes, the Trustee will select the Notes
to be redeemed in principal amounts of $1,000 or multiples thereof by lot, on a
pro rata basis or by any other method that the Trustee considers fair and
appropriate or in accordance with the applicable procedures of the Depository
to the extent Notes are held in book-entry form. If any Notes are to be
redeemed in part only, the Company will issue a new Note or Notes with a
principal amount equal to the unredeemed principal portion thereof. If a
portion of a Holder’s Notes is selected for partial redemption, and the Holder
converts a portion of its Notes, the converted portion will be deemed to be
taken from the portion selected for redemption.

 

(iii)                               If
the Paying Agent holds cash sufficient to pay the redemption price of the Notes
for which a redemption notice has been delivered on the redemption date in
accordance with the terms of the Indenture, then, on and after the redemption
date, the Notes will cease to be outstanding and interest on such Notes shall
cease to accrue, whether or not the Notes are delivered to the Paying Agent.
Thereafter, all rights of the Holder shall terminate, other than the right to
receive the redemption price upon delivery of the Notes.

 

(iv)                              In
the event of any redemption, the Company will not be required to:

 

(A)                              issue,
register the transfer of or exchange any Note during a period beginning at 9:00 a.m.
New York City time 15 days before any selection of Notes for redemption and
ending at 5:00 PM New York City time on the earliest date on which the relevant
notice of redemption is deemed to have been given to all Holders of Notes to be
so redeemed; or

 

(B)                                register
the transfer of or exchange any Note so selected for redemption, in whole or in
part, except the unredeemed portion of any Note being redeemed in part.

 

(9)                                  Sinking Fund. The Notes shall not have the
benefit of any sinking fund.

 

(10)                            Repurchase of Notes at the Option of Holders Upon a
Fundamental Change.

 

(a)                                  In
the event of a Fundamental Change, each Holder will have the right, at its
option, subject to the requirements of the Indenture, to require the Company to
repurchase, in whole or in part, such Holder’s Notes in integral multiples of
$1,000 principal amount, at a price in cash (the “Fundamental Change Purchase Price”) equal to 100% of the principal
amount of such Notes tendered, plus any accrued and unpaid interest to, but not
including, the repurchase date. The Company shall repurchase the Notes on a
date (the “Fundamental Change Purchase Date”)
that is not less than 20 nor more than 45 Business Days after the date the
Company mails the Fundamental Change Notice (as defined below).

 

8

 

(b)                                 Within
10 Business Days after a Fundamental Change has become effective, the Company
shall mail a written notice (the “Fundamental
Change Notice” and the date of such mailing, the “Fundamental Change Notice Date”) by first-class mail
to the Trustee and to each Holder (and to beneficial owners as required by
applicable law). The notice shall include a form of Fundamental Change
Purchase Notice (as defined below) to be completed by the Holder and shall
state:

 

(i)                                     the
events causing such Fundamental Change;

 

(ii)                                  the
date of such Fundamental Change;

 

(iii)                               the
last date on which a Holder may exercise the repurchase right;

 

(iv)                              the
Fundamental Change Purchase Date;

 

(v)                                 the
Fundamental Change Purchase Price;

 

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

 

(vii)                           the
Conversion Rate applicable on the Fundamental Change Notice Date;

 

(viii)                        that the
Notes as to which a Fundamental Change Purchase Notice has been given may be
converted if they are otherwise convertible pursuant to paragraph 22 below
only if the Fundamental Change Purchase Notice has been withdrawn in accordance
with the terms of the Indenture;

 

(ix)                                that
the Notes must be surrendered to the Paying Agent to collect payment;

 

(x)                                   that
the Fundamental Change Purchase Price for any Note as to which a Fundamental
Change Purchase Notice has been duly given and not withdrawn will be paid promptly
following the later of the Fundamental Change Purchase Date and the time of
surrender of such Note;

 

(xi)                                the
procedures the Holder must follow to exercise its rights under this paragraph
10;

 

(v)                                 the
conversion rights, if any, of the Notes;

 

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

 

9

 

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

 

(xii)                             the
CUSIP number(s) of the Notes.

 

(c)                                  At
the Company’s request, the Trustee shall give the Fundamental Change Notice in
the Company’s name and at the Company’s expense; provided, however,
that the Company makes such request at least three Business Days (unless a
shorter period shall be satisfactory to the Trustee) prior to the date by which
such Fundamental Change Notice must be given to the Holder in accordance with
this paragraph 10; provided, further, that the text of the Fundamental
Change Notice shall be prepared by the Company.

 

(d)                                 To
exercise its right pursuant to this paragraph 10, a Holder must transmit to the
Paying Agent a written repurchase notice (a “Fundamental
Change Purchase Notice”), and such Fundamental Change Purchase
Notice must be received by the Paying Agent no later than the close of business
on the Business Day immediately preceding the Fundamental Change Purchase Date.
The Fundamental Change Purchase Notice must state:

 

(i)                                     the
certificate number of the Notes to be delivered by the Holder, if applicable;

 

(ii)                                  the
portion of the principal amount of Note to be repurchased, which portion must
be $1,000 or an integral multiple of $1,000; and

 

(iii)                               that
such Notes are being tendered for repurchase pursuant to the provisions of this
paragraph 10.

 

(1)                                                                                  If
Notes are not in certificated form, the Fundamental Change Purchase Notice must
comply with all applicable Depository procedures. The Paying Agent shall
promptly notify the Company of the receipt by it of any Fundamental Change
Repurchase Notice pursuant to this paragraph 10(d).

 

(e)                                  The
Company’s obligation to pay the Fundamental Change Purchase Price for a Note
for which a Fundamental Change Purchase Notice has been delivered and not
validly withdrawn is conditioned upon delivery of the Note, together with
necessary endorsements, to the Paying Agent at any time after the delivery of
such Fundamental Change Purchase Notice. The Company shall cause the
Fundamental Change Purchase Price for such Note to be paid promptly following
the later of the Fundamental Change Purchase Date or the time of delivery of
such Note.

 

(f)                                    If the Paying Agent holds money sufficient to pay
the Fundamental Change Purchase Price of a Note for which a Fundamental Change
Purchase Notice has been delivered, and not withdrawn pursuant to paragraph 10(g) below,
on the

 

10

 

Fundamental Change Purchase date in accordance with the terms of this
paragraph 10, then, on and after the Fundamental Change Purchase Date, such
Note will cease to be outstanding and interest on such Note will cease to
accrue, whether or not such Note is delivered to the Paying Agent. Thereafter,
all rights of the Holder shall terminate, other than the right to receive the
Fundamental Change Purchase Price upon delivery of such Note.

 

(g)                                 A
Holder may withdraw any Fundamental Change Purchase Notice by delivering
to the Paying Agent a written notice of withdrawal prior to the close of
business on the Business Day immediately preceding the Fundamental Change
Purchase Date. The notice of withdrawal must state:

 

(i)                                     the
certificate numbers of the Notes being withdrawn, if applicable;

 

(ii)                                  the
principal amount of Notes being withdrawn, which must be $1,000 or an integral
multiple of $1,000; and

 

(iii)                               the
principal amount, if any, of the Notes that remain subject to the repurchase
notice.

 

If the Notes
are not in certificated form, the withdrawal notice must comply with applicable
Depository procedures. The Paying Agent shall promptly notify the Company of
the receipt by it of any notice of withdrawal pursuant to this paragraph 10(g).

 

(h)                                 Prior to 10:00 a.m. New York City time on the
Fundamental Change Purchase Date, the Company shall deposit with the Trustee or
with the Paying Agent an amount of cash sufficient to pay the aggregate
Fundamental Change Purchase Price of all the Notes or portions thereof which
are to be purchased as of the Fundamental Change Purchase Date.

 

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

 

(j)                                     When complying with the provisions of this
paragraph 10, the Company shall comply with the provisions of Rule 13e-4, Rule 14e-1
and any other tender offer rules under the Exchange Act that may then
be applicable, and otherwise comply with all federal and state securities laws in connection
with any offer by us to repurchase the Notes upon a Fundamental Change.

 

11

 

(k)                                  The Trustee and the Paying Agent shall return to
the Company any cash that remains unclaimed for two years, together with
interest, if any, thereon, held by them for the payment of the Fundamental
Change Purchase Price; provided, however,
that to the extent that the aggregate amount of cash deposited by the Company
pursuant to paragraph 10(h) above exceeds the aggregate Fundamental Change
Purchase Price of the Notes or portions thereof which the Company is obligated
to purchase as of the Fundamental Change Purchase Date, then, promptly after
the Business Day following the Fundamental Change Purchase Date, the Trustee shall
return any such excess to the Company together with interest, if any, thereon.

 

(11)                            The
Notes shall be issued in denominations of $1,000 and any integral multiple
thereof. Except as provided in Section 2.14.2 of the Base Indenture, the
Notes shall be issued in the form of a Global Security and the Depository
for such Global Security shall be The Depository Trust Company.

 

(12)                            The
Trustee initially shall be the Registrar, Paying Agent and Conversion Agent
with respect to the Notes and Wells Fargo Bank, National Association initially
shall be the Trustee with respect to the Notes.

 

(13)                            Payments
of the principal and interest shall be made in Dollars, and the Notes shall be
denominated in Dollars.

 

(14)                            The
Notes shall be payable on the Maturity Date in an amount equal to the principal
amount thereof plus unpaid interest accrued to, but not including, such
Maturity Date.

 

(15)                            Events of Default. In lieu of the Events
of Default set forth in Section 6.1 of the Base Indenture, the following
shall be Events of Default with respect to the Notes:

 

(a)                                  a
default in the payment when due of any principal of any of the Notes at
maturity, upon redemption or exercise of a repurchase right or otherwise;

 

(b)                                 a
default in the payment of any interest or any Make-Whole Premium (as defined
below) or Coupon Make-Whole Payment when due under the Notes, which default
continues for 30 days;

 

(c)                                  a
default in the Company’s obligation to satisfy its conversion obligation upon
exercise of a Holder’s conversion right, which default continues for 15 days;

 

(d)                                 a
default in the Company’s obligation to provide a Fundamental Change Notice when
required by the Indenture;

 

12

 

(e)                                  the
failure of the Company to comply with any of its other agreements in the Notes
or the Indenture upon receipt of notice to the Company of such default from the
Trustee or to the Company and the Trustee from Holders of not less than 25% in
aggregate principal amount of the Notes then outstanding, and the Company’s failure
to cure (or obtain a waiver of) such default within 60 days after it receives
such notice;

 

(f)                                    the
Company or any Significant Subsidiary (as defined below) fails to make any
payment of principal in excess of $25 million in respect of indebtedness for
borrowed money, when and as the same shall become due and payable, whether at
maturity or upon acceleration, and such indebtedness is not paid, or such
acceleration is not rescinded, by the end of the 30th day after receipt of
notice to the Company of such default from the Trustee or to the Company and
the Trustee from Holders of not less than 25% in aggregate principal amount of
the Notes then outstanding;

 

(g)                                 the
Company or any Significant Subsidiary, 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; or

 

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

 

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

 

(i)                                     is
for relief against the Company or any Significant Subsidiary in an involuntary
case;

 

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

 

(iii)                               orders
the liquidation of the Company or any Significant Subsidiary;

 

and, in any such case, the order or decree
remains unstayed and in effect for 60 days.

 

For purposes
of this paragraph 15, notwithstanding Section 1.1 of the Base Indenture, “Significant Subsidiary” means any of
Subsidiary of the Company which has: (i) consolidated assets or in which
the Company and its other Subsidiaries have investments equal to or greater

 

13

 

than 10% of
the Company’s total consolidated assets; or (ii) consolidated gross
revenue equal to or greater than 10% of the Company’s consolidated gross
revenue.

 

The Company must give the Trustee written notice within 30 days after
becoming aware of any Default under the Indenture.

 

(16)                            The
first paragraph of Section 6.2 of the Base Indenture is modified in its
entirety with respect to the Notes as follows: 
If an Event of Default other than an Event of Default specified in
paragraph 15(g) or 15(h) occurs and is continuing, either the Trustee
by notice to the Company, or the Holders of at least 25% in aggregate principal
amount of the Notes then outstanding by notice to the Company and the Trustee, may declare
the principal amount of the Notes then outstanding plus accrued and unpaid
interest to be immediately due and payable. Upon such a declaration, such
accelerated amount shall be due and payable immediately. If an Event of Default
specified in paragraph 15(g) or 15(h) occurs and is continuing, the
principal amount plus accrued and unpaid interest shall automatically become
and be immediately due and payable without any declaration or other act on the part of
the Trustee or any Holders.

 

(17)                            Section 9.1
of the Base Indenture is modified in its entirety with respect to the Notes as
follows:  The Company and the Trustee may amend
or supplement the Indenture or the Notes without notice to, or the consent of
the Holders to:

 

(a)                                  cure
any ambiguity, defect, omission, mistake or inconsistency;

 

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

 

(c)                                  provide
for the assumption of the Company’s obligations to Holders in the case of a
share exchange, merger or consolidation or sale of all or substantially all of
the Company’s assets;

 

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

 

(e)                                  add
a Guarantor;

 

(f)                                    comply
with requirements of the SEC in order to effect or maintain the qualification
of the Indenture under the TIA;

 

(g)                                 secure
the Notes;

 

(h)                                 comply
with the rules of any applicable securities depositary, including the
Depository;

 

14

 

(i)                                     conform the
text of the Indenture or the Notes to any provision of the “Description of the
Notes” set forth in the Company’s Prospectus Supplement, dated April 11,
2006, relating to the Notes, to the extent that the text of the Indenture or
the Notes was intended to be a recitation of the text of such “Description of
the Notes”; or

 

(j)                                     provide
for a successor trustee in accordance with the terms of the Indenture or to
otherwise comply with any requirement of the Indenture.

 

(18)                            Section 9.3
of the Base Indenture is modified in its entirety with respect to the Notes as
follows:  No amendment, supplement or
waiver may be made without the consent of the Holder of each outstanding
Note if such amendment, supplement or waiver would:

 

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

 

(b)                                 reduce
the principal amount of, repurchase price or redemption price of, or the
Make-Whole Premium, the Coupon Make-Whole Payment or rate of interest on any
Note;

 

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

 

(d)                                 change
the currency in which the principal, repurchase price or redemption price or
interest with respect to the Notes is payable;

 

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

 

(f)                                    modify
the provisions with respect to the repurchase rights of the Holders described
in paragraph 10 in a manner adverse to Holders;

 

(g)                                 adversely
affect the right of Holders to convert Notes other than as provided in the
Indenture;

 

(h)                                 reduce
the percentage in principal amount of the outstanding Notes, the consent of
whose holders is required in order to take specific actions including, but not
limited to, the waiver of past Defaults or the modification or amendment of the
Indenture; or

 

(i)                                     alter
the manner of calculation or rate of accrual of interest, redemption price,
repurchase price or the Make-Whole Premium or Coupon Make-Whole Payment on any
Note or extend the time for payment of any such amount.

 

(19)                            The Notes shall initially
be issuable only as registered securities in permanent global forms (without
coupons). Beneficial owners of interests in the Global Securities may exchange
such interests for Notes of like tenor or any authorized form and

 

15

 

denomination only in the manner provided in Section 2.14 of the
Base Indenture. The Depository Trust Company shall initially be the Depository
with respect to each Global Security. The form of such Global Securities
attached hereto as Exhibit A is hereby approved.

 

(20)                            Interest on any Note shall
be payable only to the person in whose name that Note (or one or more
predecessor Notes thereof) is registered at 5:00 p.m. New York City time,
on the Record Date for such interest unless as otherwise provided in paragraph
5.

 

(21)                            Section 5.1 of the
Base Indenture is modified in its entirety with respect to the Notes as
follows: the Company may consolidate with or merge into any person or
convey, transfer or lease the Company’s properties and assets substantially as
an entirety to another person, provided that:

 

(a)                                  the
resulting, surviving or transferee person (if other than the Company) is
organized and existing under the laws of the United States, any state thereof
or the District of Columbia;

 

(b)                                 such
resulting, surviving or transferee person (if other than the Company) assumes
all the Company’s obligations under the Notes and the Indenture; and

 

(c)                                  immediately
after giving effect to such transaction, the Company or such resulting,
surviving or transferee person (if other than the Company) is not in default
under the Indenture.

 

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

 

(22)                            Conversion.

 

(a)                                  Conversion Privilege. A Holder may convert
its Notes, in whole or in part, into shares of Common Stock at any time prior
to the close of business on the Business Day immediately preceding the Maturity
Date, unless the Company has redeemed or purchased such Notes, only if the
conditions described below in this paragraph 22(a) have been satisfied.
Upon conversion, the Company may choose to deliver, in lieu of Common
Stock, cash or a combination of cash and Common Stock, as provided in paragraph
22(g). Holders may only convert Notes with a principal amount of $1,000 or
an integral multiple of $1,000.

 

Holders may surrender their Notes for
conversion into shares of Common Stock prior to the Maturity Date only under
the following circumstances:

 

(i)                                     Conversion Upon Satisfaction of Market Price
Condition. Holders may surrender Notes for conversion into
Common Stock on or prior to the Maturity Date during any fiscal quarter of the
Company if the Closing Sale Price of the Common Stock for at least 20 Trading
Days in the period of 30 consecutive Trading Days ending on the

 

16

 

last Trading Day of the preceding fiscal
quarter exceeds 120% of the Conversion Price on such last Trading Day.

 

For each fiscal quarter, the
Company shall determine if the Notes are convertible as the result of the
satisfaction of this condition in the preceding fiscal quarter and will
promptly notify the Trustee accordingly. The Trustee shall, in turn, notify the
Holders in each fiscal quarter as to the satisfaction of this condition.

 

(ii)                                  Conversion Upon Notice of Redemption.
Holders may surrender for conversion a Note called for redemption at any
time prior to the close of business on the Business Day immediately prior to the
redemption date. However, if a Holder already has delivered a purchase notice
or notice of such Holder’s exercise of its option to require the Company to
repurchase such Note, such Holder may not surrender such Note for
conversion until such Holder has withdrawn that notice in accordance with the
Indenture.

 

(iii)                               Conversion Upon Trading Price of Notes Falling Below
the Conversion Value of the Notes. If, during any five consecutive
Trading Day period, the average of the Trading Prices of the Notes is less than
98% of the average of the Conversion Values of the Notes during that period,
then Holders may surrender Notes for conversion at any time during the
following five Trading Days.

 

(iv)                              Conversion Upon Specified Corporate Transactions.
If the Company elects to distribute to all holders of Common Stock:

 

(A)                              rights
or warrants entitling them to subscribe for or purchase shares of Common Stock
at less than the Closing Sale Price of the Common Stock on the Trading Day
immediately preceding the declaration date for such distribution (other than a
distribution of rights pursuant to the Shareholders Rights Plan); or

 

(B)                                cash,
debt securities or other evidence of indebtedness or other assets, which
distribution, together with all other such distributions within the preceding
twelve months, has a per share value exceeding 15% of the Closing Sale Price of
the Common Stock on the Trading Day immediately preceding the declaration date
for the distribution,

 

then the Company shall notify Holders at least 20 days prior to the
ex-dividend date for such distribution. Once the Company has given such notice,
Holders may surrender Notes for conversion at any time until the earlier
of the close of business on the Business Day prior to the ex-dividend date or
the Company’s announcement that such distribution will not take place.

 

(v)                                 Conversion Upon a Fundamental Change. In
the event of a Fundamental Change, Holders may surrender Notes for
conversion at any time beginning on the Fundamental Change Notice Date until
the second Trading Day preceding the related Fundamental Change Purchase Date.
If a Holder converts Notes in connection with a

 

17

 

Fundamental Change, such Holder also shall be
entitled to receive the payments pursuant to paragraph 22(i) below.

 

(vi)                              Conversion During Three Months Prior to Maturity.
Holders may surrender Notes for conversion at any time on or after January 15,
2013 until the close of business on the Business Day immediately preceding the
Maturity Date.

 

(b)                                 Conversion Rate. The Conversion Rate shall
initially be 249.2522 shares of Common Stock per $1,000 principal amount at
maturity, subject to adjustment in certain events described in paragraph 22(f) below.

 

(c)                                  Conversion Procedures. The right of conversion
attaching to any Note may be exercised (x) if such Note is represented by
a Global Security, by book-entry transfer to the Conversion Agent through the
facilities of the Depository, in accordance with the procedures established by
the Depository, or (y) if such Note is represented by a certificated Note, by
delivery of such Note at the specified office of the Conversion Agent,
accompanied, in either case, by a duly signed and completed conversion notice
and appropriate endorsements and transfer documents if required by the
Conversion Agent. Provisions of this paragraph 22 that apply to conversion of
all of a Note also apply to conversion of a portion of a Note.

 

(i)                                     No
separate payment or adjustment will be made for accrued and unpaid interest on
a converted Note or for dividends or distributions on any Common Stock issued
upon conversion of a Note, except as provided in the Indenture. By delivering
to a Holder the number of shares of Common Stock (or cash or a combination of
cash and shares of Common Stock, if the Company so elects pursuant to paragraph
22(g) below) issuable upon conversion, together with a cash payment in
lieu of any fractional shares, plus any other consideration due upon
conversion, the Company shall satisfy its obligation with respect to the
conversion of the Notes.

 

(ii)                                  If
a Holder converts Notes after the close of business on a Record Date for an
interest payment but prior to the corresponding Interest Payment Date, such
Holder will receive on such Interest Payment Date interest accrued on such
Notes, notwithstanding the conversion of Notes prior to such Interest Payment
Date, assuming such Holder was the holder of record at the close of business on
the corresponding Record Date. Each Holder, however, agrees, by accepting a
Note, that if such Holder surrenders any Notes for conversion during such
period, such Holder shall pay the Company at the time such Holder surrenders
its Notes for conversion an amount equal to the interest that will be paid on
the Notes being converted on such Interest Payment Date. The preceding sentence
does not apply, however, if (A) the Company has specified a redemption
date that is after a Record Date for an interest payment but prior to the
corresponding Interest Payment Date or that results in conversion prior to such
Interest Payment Date, (B) any overdue interest exists at the time of
conversion with respect to the Notes being converted, but only to the extent of
the amount of such overdue interest, or (C) such Holder surrenders any
Notes for conversion after the close of business on the Record Date relating to
the final Interest Payment Date.

 

18

 

(iii)                               Notes
will be deemed to have been converted immediately prior to the close of
business on the Conversion Date. Delivery of shares of Common Stock will be
accomplished as soon as practicable following the Conversion Date by delivery
to the Conversion Agent of certificates for the relevant number of shares,
other than in the case of Holders in book-entry form with the Depository,
which shares shall be delivered in accordance with the Depository’s customary
practices. A Holder will not be entitled to any rights as a holder of Common
Stock, including, among other things, the right to vote and receive dividends and
notices of stockholder meetings, until the conversion is effective.

 

(iv)                              If
the last day on which a Note may be converted is a Legal Holiday, the Note
may be surrendered on the next succeeding day that is not a Legal Holiday;
notwithstanding the forgoing, a Note may not be surrendered for conversion
after the Maturity Date.

 

(v)                                 Upon
surrender of a Note that is converted in part, the Company shall execute, and
the Trustee shall authenticate and deliver to the Holder, a new Note in an
authorized denomination equal in principal amount at maturity to the
unconverted portion of the Note surrendered.

 

(d)                                 Fractional Shares. The Company will not
issue fractional shares of Common Stock upon conversion of a Note. Instead, the
Company will pay cash based on the current market value of the fractional
shares. The current market value of a fractional share shall be determined, to
the nearest 1/1,000th of a share, by multiplying the Closing Sale Price of the
Common Stock, on the last Trading Day immediately prior to the Conversion Date,
of a full share by the fractional amount and rounding the product to the
nearest whole cent. Whether fractional shares are issuable upon a conversion
will be determined on the basis of the total number of Notes that the Holder is
then converting into Common Stock and the aggregate number of shares of Common
Stock issuable upon such conversion.

 

(e)                                  Taxes on Conversion. If a Holder submits a
Note for conversion, the Company shall pay all stamp and all other duties, if
any, which may be imposed by the United States or any political
subdivision thereof or taxing authority thereof or therein with respect to the
issuance of shares of Common Stock upon the conversion. However, the Holder
shall pay any such tax which is due because the Holder requests the shares to
be issued in a name other than the Holder’s name. The Conversion Agent may refuse
to deliver the certificates representing the shares of Common Stock being
issued in a name other than the Holder’s name until the Conversion Agent receives
a sum sufficient to pay any tax which will be due because the shares are to be
issued in a name other than the Holder’s name. Nothing herein shall preclude
any tax withholding required by law or regulations.

 

(f)                                    Conversion Rate Adjustments. The Conversion
Rate shall be subject to adjustment upon the following events:

 

(i)                                     Adjustment for Change in Common Stock. If,
after the date of the Indenture, the Company:

 

19

 

(A)                              pays
a dividend or makes another distribution to holders of Common Stock payable in
shares of Common Stock;

 

(B)                                subdivides
the outstanding shares of Common Stock into a greater number of shares;

 

(C)                                combines
the outstanding shares of Common Stock into a smaller number of shares; or

 

(D)                               reclassifies
the outstanding shares of Common Stock,

 

then the conversion privilege and the Conversion Rate in effect
immediately prior to such action shall be adjusted so that the Holder of a Note
thereafter converted may receive the number of shares of Capital Stock of
the Company which such Holder would have owned immediately following such
action if such Holder had converted the Note immediately prior to such action.

 

The adjustment
shall become effective immediately after the Record Date in the case of a dividend,
distribution or subdivision and immediately after the effective date in the
case of a combination or reclassification.

 

If after an
adjustment, a Holder may, upon conversion of a Note, receive shares of two or
more classes of Capital Stock of the Company, the Conversion Rate shall
thereafter be subject to adjustment upon the occurrence of an action taken with
respect to any such class of Capital Stock as is contemplated by this
paragraph 22 with respect to the Common Stock, on terms comparable to those
applicable to Common Stock in this paragraph 22.

 

(ii)                                  Adjustment for Rights Offering. If, after
the date of the Indenture, the Company pays a dividend or makes another
distribution to all holders of Common Stock of rights or warrants (other than a
distribution of rights pursuant to the Shareholders Rights Plan) entitling them
for a period of not more than 60 days to subscribe for or purchase Common
Stock, or securities convertible into Common Stock, at a price per share or a
conversion price per share less than the Closing Sale Price per share on the
Record Date for such issuance, the Conversion Rate shall be adjusted in
accordance with the formula:

 

(O + N)

R = R x    
-----------------

(O + (N x P)/M)

 

where:

 

R = the adjusted Conversion Rate

R = the current Conversion Rate

O = the number of shares of Common Stock outstanding on the Record Date
for the distribution to which this clause (ii) is being applied

 

20

 

N = the number of additional shares of Common Stock offered pursuant to
the distribution

P = the offering price per share of the additional shares of Common
Stock

M = the Market Price

 

The adjustment
shall become effective immediately after the Record Date for the determination
of shareholders entitled to receive the rights or warrants to which this clause
(ii) applies. If all of the shares of Common Stock subject to such rights
or warrants have not been issued when such rights or warrants expire, then the
Conversion Rate shall promptly be readjusted to the Conversion Rate which would
then be in effect had the adjustment upon the issuance of such rights or
warrants been made on the basis of the actual number of shares of Common Stock
issued upon the exercise of such rights or warrants.

 

No adjustment shall be made
under this clause (ii) if the application of the formula stated above in
this clause (ii) would result in a value of R that is equal to or less than the value of R.

 

(iii)                               Adjustment for Non-cash Distributions. If,
after the date of the Indenture, the Company pays a dividend or makes another
distribution to all holders of Common Stock of shares of its Capital Stock,
evidences of indebtedness or other non-cash assets, or rights or warrants
(excluding, however, dividends and distributions referred to in clause (i) or
(ii) above or clause (v) below, and distributions of rights pursuant
to the Shareholders Rights Plan), the Conversion Rate shall be adjusted,
subject to the provisions of the last paragraph of this clause (iii), in
accordance with the formula:

 

R x M

R    =    
-----------------

(M – F)

 

where:

 

R = the adjusted Conversion Rate

R = the current Conversion Rate

M = the Market Price

F = the fair market value (on the Record Date for the distribution to
which this clause (iii) applies) of the Capital Stock, evidences of
indebtedness or other non-cash assets, or rights or warrants to be distributed
in respect of each share of Common Stock in the distribution to which this
clause (iii) is being applied

 

In the event
the Company distributes shares of Capital Stock of a Subsidiary of the Company,
the Conversion Rate will be adjusted, if at all, based on the market value of
the Subsidiary stock so distributed relative to the market value of the shares
of Common Stock, as provided in this paragraph. The Board of Directors shall
determine fair market values for the purposes of this clause (iii), except that
in respect of a dividend or other distribution of shares of Capital Stock of
any class or series, or similar equity interests, of or relating to a
Subsidiary or other business unit of the Company (a “Spin-off”), the fair market value of the securities to be
distributed shall equal the average of the daily Closing Sale Prices of those
securities for the five

 

21

 

consecutive
Trading Days commencing on and including the sixth day of trading of those
securities after the effectiveness of the Spin-off. In the event, however, that
an underwritten initial public offering of the securities in the Spin-off
occurs simultaneously with the Spin-off, fair market value of the securities
distributed in the Spin-off shall mean the initial public offering price of
such securities and the Market Price shall mean the Closing Sale Price of the
Common Stock on the same Trading Day.

 

The adjustment
shall become effective immediately after the Record Date for the determination
of shareholders entitled to receive the distribution to which this clause (iii) applies,
except that an adjustment related to a Spin-off shall become effective at the
earlier to occur of (A) 10 consecutive Trading Days after the effective
date of the Spin-off and (B) the initial public offering of the securities
distributed in the Spin-off.

 

In the event
that, with respect to any distribution to which this clause (iii) would
otherwise apply, the difference “M – F” as defined in the above formula is less
than $1.00 or “F” is equal to or greater than “M”, then the adjustment provided
by this clause (iii) shall not be made and in lieu thereof the provisions
of clause (xi) shall apply to such distribution.

 

(iv)                              Adjustment for Cash Distributions. If
after the date of the Indenture, the Company pays a cash dividend or makes
another cash distribution (other than in connection with a liquidation,
dissolution or winding up of the Company and other than distributions described
in clause (v) below) to all holders of Common Stock, the Conversion Rate
shall be increased so that it equals an amount equal to the Conversion Rate in
effect at the close of business on the Record Date for the dividend or
distribution multiplied by a fraction, the numerator of which is the average of
the Volume-weighted Average Price per share of Common Stock for the five
consecutive Trading Days ending on the date immediately preceding the “ex” date
(as defined below) for such dividend or distribution, and the denominator of
which is such average Volume-weighted Average Price per share of Common Stock
less the per share amount of such dividend or distribution.

 

The adjustment shall become effective
immediately after the Record Date for the determination of shareholders
entitled to receive the distribution to which this clause (iv) applies.

 

The term “ex” date means the first date on which the
Common Stock trades, regular way, on the relevant exchange or in the relevant
market from which the sale price was obtained without the right to receive such
dividend or distribution.

 

Notwithstanding the foregoing, in no event
will the Conversion Rate exceed 294.1176 shares per $1,000 principal amount of
Notes, as adjusted pursuant to clauses (i), (ii) and (iii) above and
clause (v) below, as a result of an adjustment pursuant to this clause
(iv).

 

(v)                                 Adjustment for Company Tender Offer. If,
after the date of the Indenture, the Company or any Subsidiary of the Company
pays cash or other consideration to all holders of Common Stock in respect of a
tender or exchange offer for the Common Stock, where such cash and the value of
any such other consideration per share of

 

22

 

Common Stock validly tendered
or exchanged exceeds the Closing Sale Price per share of the Common Stock on
the last date on which tenders or exchanges may be made pursuant to the
tender or exchange offer, the Conversion Rate shall be increased so that the
Conversion Rate equals the product of (A) the Conversion Rate in effect
immediately prior to the effectiveness of the Conversion Rate increase
contemplated by this clause (v) multiplied by (B) a fraction, the
denominator of which shall be the number of shares of Common Stock outstanding
(including any tendered or exchanged shares) at the last time tenders or
exchanges may be made pursuant to such tender or exchange offer (the “Expiration Time”) multiplied by the Closing
Sale Price per share of Common Stock on the Trading Day next succeeding the
Expiration Time, and the numerator of which shall be the sum of the fair market
value (determined in the manner provided in clause (iii) above) of the
aggregate consideration payable to stockholders based on the acceptance (up to
any maximum specified in the terms of the tender or exchange offer) of all
shares validly tendered or exchanged and not withdrawn as of the Expiration
Time (the shares deemed so accepted, up to any such maximum, being referred to
as the “Purchased Shares”)
plus the product of (x) the number of shares of Common Stock (less any
Purchased Shares) at the Expiration Time and (y) the Closing Sale Price per
share of Common Stock on the Trading Day next succeeding the Expiration Time,
such increase to become effective immediately prior to the opening of business
on the day following the Expiration Time.

 

(vi)                              When Adjustment May Be Deferred.
Notwithstanding anything in this paragraph 22 to the contrary, no adjustment in
the Conversion Rate need be made unless the adjustment would require an
increase or decrease of at least 1% in the Conversion Rate. Any adjustments
that are not made shall be carried forward and taken into account in any
subsequent adjustment. All calculations under this paragraph 22 shall be made
to the nearest cent or to the nearest 1/1,000th of a share, as the case may be.

 

(vii)                           When No Adjustment Required. The
Conversion Rate will not be adjusted:

 

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

 

(B)                                upon
the issuance of any shares of Common Stock or options, rights or other
instruments to purchase or otherwise acquire shares of Common Stock pursuant to
any compensatory plan, program or arrangement of or assumed by the Company or
any of its Subsidiaries;

 

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

 

(D)                               for
accrued and unpaid interest.

 

23

 

In addition, no adjustment to the Conversion Rate will be made in
respect of any dividend or distribution if the Company provides that the
Holders may participate in such dividend or distribution without
conversion of the Notes.

 

(viii)                        Notice of Adjustment. Whenever the
Conversion Rate is adjusted, the Company shall promptly mail to Holders a
notice of the adjustment. The Company shall file with the Trustee and the
Conversion Agent such notice briefly stating the facts requiring the adjustment
and the manner of computing it. The notice shall be conclusive evidence that
the adjustment is correct. Neither the Trustee nor any Conversion Agent shall
be under any duty or responsibility with respect to any such certificate except
to provide the same to any Holder desiring inspection thereof.

 

(ix)                                Voluntary Increase. Subject to applicable
stock exchange rules and listing standards, the Company shall be permitted
to increase the Conversion Rate by any amount for a period of at least 20 days
if the Board of Directors determines that such increase would be in the Company’s
best interest. The Company shall give Holders at least 15 days’ prior notice of
any increase in the Conversion Rate. Subject to applicable stock exchange rules and
listing standards, the Company may also increase the Conversion Rate to
avoid or diminish income tax to holders of Common Stock in connection with a
dividend or distribution of stock or similar event.

 

(x)                                   Notice of Certain Transactions. If:

 

(A)                              the
Company takes any action that would require an adjustment in the Conversion
Rate pursuant to clauses (i), (ii), (iii), (iv) or (v) above (unless
no adjustment is to occur pursuant to clauses (vi) or (vii) above);

 

•                                          the
Company takes any action that would require a supplemental indenture pursuant
to clause (xi) below; or

 

•                                          there
is a liquidation or dissolution of the Company;

 

then the Company shall mail to Holders and file with the Trustee and
the Conversion Agent a notice stating the proposed record date for a dividend,
distribution or subdivision or the proposed effective date of a combination,
reclassification, consolidation, merger, binding share exchange, transfer,
liquidation or dissolution. The Company shall file and mail the notice at least
10 days before such date. Failure to file or mail the notice or any defect in
it shall not affect the validity of the transaction.

 

(xi)                                Reorganization of Company; Special Distributions. If
the Company is a party to a transaction subject to Section 5.1 of the Base
Indenture, or a merger or binding share exchange which reclassifies or changes
its outstanding shares of Common Stock, in any such case in which holders of
Common Stock would be entitled to receive stock, other securities, other
property, assets or cash for their Common Stock, Holders of

 

24

 

Notes shall thereafter be
entitled to convert their Notes into the same type of consideration received by
holders of Common Stock immediately following such transaction. In any such
case, the Company shall cause the person obligated to deliver such stock, other
securities, other property, assets or cash upon conversion of Notes to enter
into a supplemental indenture, which shall provide that the Holder of a Note may convert
such Note into the kind and amount of stock, other securities, other property,
assets or cash which such Holder would have received immediately after such
transaction if such Holder had converted the Note immediately before the
effective date of such transaction, assuming (to the extent applicable) that
such Holder (A) was not a constituent person, or an Affiliate of a
constituent person, to such transaction; (B) made no election with respect
thereto; and (C) was treated alike with the plurality of non-electing
holders of Common Stock. The supplemental indenture shall provide for
adjustments which shall be as nearly equivalent as may be practical to the
adjustments provided for in this paragraph 22.

 

If the Company
pays a dividend or makes another distribution to all holders of its Common
Stock of shares of its Capital Stock, evidences of indebtedness or other
non-cash assets, or rights or warrants that, but for the provisions of the last
paragraph of clause (iii) above, would otherwise result in an adjustment
in the Conversion Rate pursuant to the provisions of clause (iii), then, from
and after the record date for determining the holders of Common Stock entitled
to receive such dividend or distribution, a Holder of a Note that converts such
Note in accordance with the provisions of the Indenture shall upon such
conversion be entitled to receive, in addition to the shares of Common Stock
into which such Note is convertible, the kind and amount of shares of Capital
Stock, evidences of indebtedness and other non-cash assets, and rights and
warrants that such Holder would have received if such Holder had converted such
Note immediately prior to the record date for determining the holders of Common
Stock entitled to receive such dividend or distribution.

 

(xii)                             The
Holders will receive, upon conversion of the Notes into Common Stock, in
addition to the Common Stock, the rights under the Shareholder Rights Plan,
whether or not the rights have separated from the Common Stock at the time of
conversion unless, prior to conversion, the rights have expired, terminated or
been redeemed or exchanged. Notwithstanding anything to the contrary herein,
the Conversion Rate will not otherwise be adjusted as a result of the
Shareholders Rights Plan.

 

(g)                                 Settlement Upon Conversion.

 

(i)                                     The
Company may, in lieu of delivery of shares of Common Stock in satisfaction of
its obligation upon conversion of Notes, elect to deliver cash or a combination
of cash and shares of Common Stock. The Company shall inform the Holders
through the Trustee of the method it has chosen to satisfy its obligation upon
conversion:

 

(A)                              in
respect of Notes converted during the period beginning 20 Trading Days
preceding the Maturity Date and ending one Trading Day preceding the Maturity
Date, no later than 21 Trading Days preceding the Maturity Date;

 

25

 

(B)                                in
respect of Notes converted during the period between the day the Company gives
notice of redemption and the related redemption date, in the notice of
redemption; and

 

(C)                                in
all other cases, no later than two Trading Days following the Conversion Date.

 

(ii)                                  Except
to the extent that the Company has irrevocably elected to make a cash payment
of principal upon conversion as set forth in paragraph 22 (h) below, if
the Company does not give any notice within the time periods described above as
to how it will settle its conversion obligation, the Company shall satisfy its
conversion obligation only in shares of Common Stock (and cash in lieu of
fractional shares pursuant to paragraph 22 (d) above). If the Company
chooses to satisfy any portion of its conversion obligation in cash, the
Company shall specify the amount to be satisfied in cash as a percentage of the
conversion obligation. The Company shall treat all holders converting on the
same Trading Day in the same manner. The Company shall not, however, have any
obligation to settle its conversion obligations arising on different Trading
Days in the same manner.

 

(iii)                               Except
to the extent the Company has irrevocably elected to make a cash payment of principal
upon conversion and unless a Holder is converting Notes in connection with a
redemption or during the period beginning 20 Trading Days preceding the
Maturity Date and ending one Trading Day preceding the Maturity Date, if the
Company elects to satisfy any portion of its conversion obligation in cash
(other than cash in lieu of fractional shares pursuant to paragraph 22 (d) above),
a Holder may retract its conversion notice at any time during the two
Trading Day period beginning on the Trading Day after the Company has notified
the Trustee of the method of settlement (the “Conversion
Retraction Period”). A Holder may not retract its conversion
notice if (i) the Company has irrevocably elected to make a cash payment
of principal upon conversion before such Holder delivered its conversion
notice; (b) such Holder is converting Notes in connection with a
redemption; (c) such Holder is converting Notes during the period
beginning 20 Trading Days preceding the Maturity Date and ending one Trading
Day preceding the Maturity Date; or (d) the Company does not elect to
satisfy any portion of its conversion obligation in cash (other than cash in
lieu of fractional shares pursuant to paragraph 22 (d) above).

 

(iv)                              Settlement
solely in shares of Common Stock shall occur as soon as practicable after the
Company notifies the Trustee that it has chosen this method of settlement.
Settlement in cash or in a combination of cash and shares of Common Stock shall
occur on the second Trading Day following the final Trading Day of the Cash
Settlement Averaging Period.

 

(v)                                 The
settlement amount shall be computed as follows:

 

(A)                              If
the Company elects to satisfy its entire conversion obligation in shares of
Common Stock, the Company shall deliver to the Holder, in

 

26

 

accordance
with the provisions of the Indenture, a number of shares of Common Stock equal
to (1) the aggregate principal amount of Notes to be converted divided by
1,000, multiplied by (2) the applicable Conversion Rate; provided that cash will be paid in lieu of
any fractional shares in accordance with paragraph 22 (d) above.

 

(B)                                If
the Company elects to satisfy its entire conversion obligation in cash, the
Company deliver to the Holder, in accordance with the provisions of the
Indenture, cash in an amount equal to the product of:

 

(x)   a
number equal to (1) the aggregate principal amount of Notes to be
converted divided by 1,000, multiplied by (2) the applicable Conversion
Rate; and

 

 (y)   the Applicable Stock Price.

 

(C)                                If
the Company elects to satisfy its conversion obligation in a combination of
cash and shares of Common Stock, the Company shall deliver to the Holder, in
accordance with the provisions of the Indenture:

 

(x)   cash in an amount equal to the percentage of
the conversion obligation to be paid in cash multiplied by the amount of cash
that would have been calculated pursuant to clause (C) above had the
Company elected to satisfy its entire conversion obligation in cash; and

 

(y)   a number of shares of Common Stock equal to (1) the
aggregate principal amount of Notes to be converted divided by 1,000 and
multiplied by the applicable Conversion Rate minus (2) the cash amount
determined pursuant to the previous bullet divided by the Applicable Stock
Price; provided that cash will be paid in lieu of any fractional shares in
accordance with paragraph 22 (d) above.

 

(h)                                 Right to Irrevocably Elect Net Share Settlement Upon
Conversion. At any time on or before the 21st Trading Day preceding
the Maturity Date, the Company may, in its sole discretion, irrevocably elect
to satisfy in cash its conversion obligations with respect to the principal
amount of the Notes to be converted after the date of such election, with any
remaining amount to be satisfied in cash, shares of Common Stock, or a
combination of both at the Company’s option. If the Company makes such
election, the Company shall notify the Trustee and the Holders.

 

If the Company
makes such election, the settlement amount will be computed as follows:

 

(i)                                     a
cash amount equal to lesser of (A) the aggregate principal amount of the
Notes to be converted or (B) the product of (1) a number equal to (x)
the aggregate principal amount of Notes to be converted divided by 1,000 and
multiplied by (y) the applicable Conversion Rate and (2) the Applicable
Stock Price;

 

27

 

(ii)                                  if
the Company elects to satisfy any remaining amount in shares of Common Stock,
the Company shall deliver to the Holder, in accordance with the provisions of
the Indenture, a number of shares of Common Stock equal to (A) the
aggregate principal amount of Notes to be converted divided by 1,000 and
multiplied by the applicable Conversion Rate minus (B) the cash amount
pursuant to clause (i) above divided by the Applicable Stock Price; provided that cash will be paid in lieu of
any fractional shares in accordance with clause (d) above;

 

(iii)                               if
the Company elects to satisfy any remaining amount in cash, the Company shall
deliver to the Holder, in accordance with the provisions of the Indenture, cash
in an amount equal to the product of (A) a number equal to (1) the
aggregate principal amount of Notes to be converted divided by 1,000 and
multiplied by (2)(x) the Applicable Conversion Rate minus (y) $1,000 divided by
the Applicable Stock Price; and (B) the Applicable Stock Price; and

 

(iv)                              if
the Company elects to satisfy any remaining amount in a combination of cash and
shares of Common Stock, the Company shall deliver to the Holder, in accordance
with the provisions of the Indenture, such combination in the respective
amounts calculated in a manner comparable to that used to settle any conversion
(as described above), and with the amount of cash specified by the Company as
contemplated in connection with any such conversion.

 

(i)                                     Payment Upon Conversion Upon a Fundamental Change.

 

(i)                                     If
a Holder converts its Notes at any time beginning at the opening of business on
a Fundamental Change Notice Date and ending at the close of business on the
second Trading Day immediately preceding the corresponding Fundamental Change
Purchase Date, such Holder shall receive:

 

(A)                              Common
Stock, cash or a combination of Common Stock and cash in accordance with
paragraph 22(g),  plus

 

(B)                                a
make-whole premium, determined in accordance with this paragraph 22(i) (a “Make-Whole Premium”).

 

(ii)                                  The
Make-Whole Premium, expressed as a percentage of the principal amount of Notes
converted, shall be determined by reference to the table below and is based on
the Fundamental Change Effective Date and the price the (“Fundamental Change Stock Price”) paid, or
deemed to be paid, per share of Common Stock in the transaction constituting
the Fundamental Change, subject to adjustment as described below. If holders of
Common Stock receive only cash in the Fundamental Change, the Fundamental
Change Stock Price shall be the cash amount paid per share. In all other cases,
the Fundamental Change Stock Price shall be the average of the Applicable Stock
Prices of the Common Stock for the five consecutive Trading Days beginning on
the second Trading Day after the Fundamental Change Notice date.

 

28

 

(iii)                               The
Company shall pay the Make-Whole Premium solely in shares of Common Stock
(other than cash in lieu of fractional shares in accordance with paragraph 22(d) above)
or in the same form of consideration into which all or substantially all
of the shares of Common Stock have been converted or exchanged in connection
with the Fundamental Change (other than cash paid in lieu of fractional
interests in any security or pursuant to dissenters’ rights). The Make-Whole
Premium will be payable on the Fundamental Change Purchase Date with respect to
Notes converted in connection with the corresponding Fundamental Change. If
holders of the Common Stock receive or have the right to receive more than one form of
consideration in connection with such Fundamental Change, then, for purposes of
the foregoing, the forms of consideration in which the Make-Whole Premium will
be paid will be in proportion to the relative value, determined as described in
the following paragraph, of the different forms of consideration paid to
holders of the Common Stock in connection with such Fundamental Change.

 

(iv)                              The
value of shares of Common Stock or other consideration for purposes of
determining the number of shares or other consideration to be issued in respect
of the Make-Whole Premium will be calculated as follows:

 

(A)                              In
the case of a Fundamental Change in which all or substantially all of the
shares of Common Stock have been, as of the Fundamental Change Effective Date,
converted into or exchanged for the right to receive securities or other assets
or property, the consideration shall be valued as follows:

 

(x)                                   securities that are
traded on a U.S. national securities exchange or approved for quotation on the
Nasdaq Stock Market or any similar system of automated dissemination of
quotations of securities prices shall be valued at 98% of the average of the
applicable prices of such securities for the five consecutive Trading Days
beginning on the second Trading Day after the Fundamental Change Notice Date;

 

(y)                                 other securities,
assets or property, other than cash, that holders will have the right to
receive will be valued based on 98% of the average of the fair market value of
the securities, assets or property, other than cash, as determined by two
independent nationally recognized investment banks selected by the Company; and

 

(z)                                   100% of any cash.

 

(B)                                In
all other cases, the value of shares of the Common Stock will equal 98% of the
average of the Applicable Stock Prices of the Common Stock for the five
consecutive Trading Days beginning on the second Trading Day after the
Fundamental Change Notice Date.

 

(v)                                 Notwithstanding
the foregoing, in no event shall the value of the Common Stock be less than 50%
of the Applicable Stock Price of the Common Stock used to determine the amount
of the Make-Whole Premium.

 

29

 

(vi)                              The
Fundamental Change Stock Prices set forth in the first column of the following
table shall be adjusted as of any date on which the Conversion Rate is
adjusted. The adjusted Fundamental Change Stock Prices shall equal the
Fundamental Change Stock Prices applicable immediately prior to the adjustment
multiplied by a fraction, the numerator of which is the Conversion Rate
immediately prior to the adjustment to the Conversion Rate and the denominator
of which is the Conversion Rate as so adjusted.

 

(vii)                           The
following table sets forth the Fundamental Change Stock Price, Fundamental
Change Effective Date and Make-Whole Premium (expressed as a percentage of
principal amount) upon a conversion in connection with a Fundamental Change:

 

30

 

	
   

  	
   

  	
  Make-Whole Premium

  (% of Principal Amount)

  Fundamental Change Effective Date

  	
   

  
	
   

  	
   

  	
  April 15,

  	
   

  
	
  Stock price

  	
   

  	
  2006

  	
   

  	
  2007

  	
   

  	
  2008

  	
   

  	
  2009

  	
   

  	
  2010

  	
   

  	
  2011

  	
   

  	
  2012

  	
   

  	
  2013

  	
   

  
	
  $

  	
    3.40

  	
   

  	
   

  	
  15.25

  	
   

  	
  15.25

  	
   

  	
  15.25

  	
   

  	
  15.25

  	
   

  	
  15.25

  	
   

  	
  15.25

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
    3.50

  	
   

  	
   

  	
  15.01

  	
   

  	
  13.77

  	
   

  	
  12.33

  	
   

  	
  10.57

  	
   

  	
  8.42

  	
   

  	
  6.17

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
    4.00

  	
   

  	
   

  	
  14.00

  	
   

  	
  12.54

  	
   

  	
  10.76

  	
   

  	
  8.51

  	
   

  	
  5.54

  	
   

  	
  0.25

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
    4.50

  	
   

  	
   

  	
  13.25

  	
   

  	
  11.64

  	
   

  	
  9.67

  	
   

  	
  7.15

  	
   

  	
  3.79

  	
   

  	
  0.00

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
    5.00

  	
   

  	
   

  	
  12.68

  	
   

  	
  10.98

  	
   

  	
  8.91

  	
   

  	
  6.25

  	
   

  	
  2.79

  	
   

  	
  0.00

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
    5.50

  	
   

  	
   

  	
  12.22

  	
   

  	
  10.48

  	
   

  	
  8.35

  	
   

  	
  5.66

  	
   

  	
  2.22

  	
   

  	
  0.00

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
    6.00

  	
   

  	
   

  	
  11.84

  	
   

  	
  10.09

  	
   

  	
  7.95

  	
   

  	
  5.25

  	
   

  	
  1.92

  	
   

  	
  0.00

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
    6.50

  	
   

  	
   

  	
  11.53

  	
   

  	
  9.78

  	
   

  	
  7.64

  	
   

  	
  4.98

  	
   

  	
  1.75

  	
   

  	
  0.00

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
    7.00

  	
   

  	
   

  	
  11.26

  	
   

  	
  9.52

  	
   

  	
  7.40

  	
   

  	
  4.78

  	
   

  	
  1.66

  	
   

  	
  0.00

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
    7.50

  	
   

  	
   

  	
  11.02

  	
   

  	
  9.30

  	
   

  	
  7.21

  	
   

  	
  4.64

  	
   

  	
  1.60

  	
   

  	
  0.00

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
    8.00

  	
   

  	
   

  	
  10.80

  	
   

  	
  9.11

  	
   

  	
  7.05

  	
   

  	
  4.53

  	
   

  	
  1.57

  	
   

  	
  0.00

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
    8.50

  	
   

  	
   

  	
  10.60

  	
   

  	
  8.94

  	
   

  	
  6.91

  	
   

  	
  4.44

  	
   

  	
  1.54

  	
   

  	
  0.00

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
    9.00

  	
   

  	
   

  	
  10.42

  	
   

  	
  8.78

  	
   

  	
  6.79

  	
   

  	
  4.36

  	
   

  	
  1.52

  	
   

  	
  0.00

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
    9.50

  	
   

  	
   

  	
  10.24

  	
   

  	
  8.64

  	
   

  	
  6.68

  	
   

  	
  4.30

  	
   

  	
  1.51

  	
   

  	
  0.00

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  10.00

  	
   

  	
   

  	
  10.08

  	
   

  	
  8.50

  	
   

  	
  6.58

  	
   

  	
  4.24

  	
   

  	
  1.49

  	
   

  	
  0.00

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  20.00

  	
   

  	
   

  	
  7.26

  	
   

  	
  6.24

  	
   

  	
  4.96

  	
   

  	
  3.27

  	
   

  	
  1.17

  	
   

  	
  0.00

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  30.00

  	
   

  	
   

  	
  4.87

  	
   

  	
  4.26

  	
   

  	
  3.45

  	
   

  	
  2.33

  	
   

  	
  0.85

  	
   

  	
  0.00

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  40.00

  	
   

  	
   

  	
  2.93

  	
   

  	
  2.57

  	
   

  	
  2.11

  	
   

  	
  1.44

  	
   

  	
  0.53

  	
   

  	
  0.00

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  

 

(viii)                        The exact
Fundamental Change Stock Price and Fundamental Change Effective Date may not
be set forth in the table, in which case:

 

(A)                              if
the Fundamental Change Stock Price is between two Fundamental Change Stock
Prices on the table or the Fundamental Change Effective Date is between two
Fundamental Change Effective Dates in the table, the Make-

 

31

 

Whole Premium
will be determined by straight-line interpolation between Make-Whole Premium
amounts set forth for the higher and lower Fundamental Change Stock Prices and
the two Fundamental Change Effective Dates, as applicable, based on a 365-day
year;

 

(B)                                if
the Fundamental Change Stock Price is equal to or in excess of $40.00 per share
(subject to adjustment in the same manner as the Fundamental Change Stock
Price), no Make-Whole Premium shall be paid; and

 

(C)                                if
the Fundamental Change Stock Price is less than $3.40 per share (subject to
adjustment in the same manner as the Fundamental Change Stock Price), no
Make-Whole Premium shall be paid.

 

(ix)                                Notwithstanding
the foregoing, in the case of a Fundamental Change constituting a Public
Acquirer Change in Control, the Company may, in lieu of paying the Make-Whole
Premium, elect to adjust the Conversion Rate and the related conversion
obligation such that, from and after the Fundamental Change Effective Date of
such Public Acquirer Change in Control, the right to convert a Note shall be
changed into a right to convert a Note into a number of shares of Acquirer
Common Stock at the Conversion Rate specified below. The Company may make
such election at any time prior to the 20th day immediately preceding the
proposed Fundamental Change Effective Date of the Public Acquirer Change in
Control, and if made, such election shall be irrevocable. In the event the
Company makes such election, upon conversion the Company shall deliver shares
of Acquirer Common Stock in the same manner described above in this paragraph
22(i).

 

(x)                                   If
the Company elects to adjust the Conversion Rate in lieu of paying a Make-Whole
Premium pursuant to paragraph 21(i)(ix), the Conversion Rate on and following
the Fundamental Change Effective Date will be a number of shares of Acquirer
Common Stock equal to the product of (A) the Conversion Rate in effect
immediately prior to the Fundamental Change Effective Date of such Public
Acquirer Change in Control, multiplied by (B) the average of the quotients
obtained, for each Trading Day in the Valuation Period (as defined below) of:

 

(x)                                   the
Acquisition Value (as defined below) of the Common Stock on each Trading Day in
the Valuation Period, divided by

 

(y)                                 the
Closing Sale Price of the Acquirer Common Stock on each Trading Day in the
Valuation Period.

 

The “Valuation Period” means the ten consecutive Trading Day period
commencing on the Trading Day next succeeding the Fundamental Change Effective
Date of such Public Acquirer Change in Control. The “Acquisition Value” of the Common Stock means, for each Trading
Day in the Valuation Period, the value of the consideration paid per share of
Common Stock in connection with such Public Acquirer Change in Control,
calculated as follows: (A) 100% of any cash; (B) 100% of the closing
sale price of any acquirer common stock on each such Trading Day; and (C) 102%
of the fair market value of any other securities, assets or property, as

 

32

 

determined by two independent
nationally recognized investment banks selected by the Company.

 

(xi)                                After
the adjustment of the Conversion Rate in connection with a Public Acquirer
Change in Control pursuant to this paragraph 22(i), the Conversion Rate will be
subject to further similar adjustments in the event that any of the events
described in this paragraph 21(i) occur thereafter.

 

(j)                                     Company Determination Final. Any
determination that the Company or the Board of Directors must make pursuant to
this paragraph 22 shall be conclusive, absent manifest error.

 

(k)                                  Trustee’s Adjustment Disclaimer. The
Trustee has no duty to determine when an adjustment under this paragraph 22
should be made, how it should be made or what it should be. The Trustee has no
duty to determine whether a supplemental indenture under paragraph 22(f)(xi)
need be entered into or whether any provisions of any supplemental indenture
are correct. The Trustee shall not be accountable for and makes no
representation as to the validity or value of any securities or assets issued
upon conversion of Notes. The Trustee shall not be responsible for the Company’s
failure to comply with this paragraph 22. Each Conversion Agent shall have the
same protection under this paragraph 22(k) as the Trustee.

 

(23)                            The Notes shall constitute
senior unsecured obligations of the Company. The Notes are not guaranteed by
the Guarantors.

 

B.                                     The form of the Notes attached hereto as Exhibit A
is approved.

 

C.                                     The foregoing form and terms of the Notes
have been established in conformity with the provisions of the Indenture.

 

D.                                    Each of the undersigned has read the Indenture and
the definitions relating thereto and has examined the resolutions referred to in
paragraph A above and the Notes and has made such examination or investigation
as is necessary to enable the undersigned to represent as to whether or not all
conditions precedent provided in the Indenture relating to the establishment,
authentication and delivery of the Notes have been complied with. On the basis
of the foregoing, all such conditions precedent have been complied with.

 

[signature page follows]

 

33

 

IN WITNESS
WHEREOF, the undersigned have hereunto executed this Officer’s Certificate as
of the 18th day of April, 2006.

 

 

	
   

  	
  RENTECH, INC.,

  
	
   

  	
  a Colorado corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/ D. Hunt Ramsbottom

  	
   

  
	
   

  	
   

  	
  D. Hunt Ramsbottom, Jr.

  
	
   

  	
   

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
     /s/ Geoffrey S. Flagg

  	
   

  
	
   

  	
   

  	
  Geoffrey S. Flagg

  
	
   

  	
   

  	
  Chief Accounting Officer

  

 

34Exhibit 4.4

 

EXHIBIT A

 

[Face of Note]

 

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

 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE
MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME
OF 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.

 

RENTECH, INC.

 

4.00%
CONVERTIBLE SENIOR NOTE DUE 2013

 

	
  No. 1

  	
   

  	
  CUSIP: 760112 AA 0

  $50,000,000

  

 

RENTECH, INC.,
a Colorado corporation (hereinafter called the “Company” which term includes any successors under the
Indenture (as defined on the reverse side of this Note), for value received,
hereby promises to pay to CEDE & CO., or registered assigns, the principal
sum of FIFTY MILLION Dollars, on April 15, 2013.

 

Interest Payment
Dates:  April 15 and October 15

 

Record
Dates:  April 1 and October 1

 

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

 

 

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

 

 

	
   

  	
  RENTECH, INC.

  
	
   

  	
  a Colorado corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  TRUSTEE’S CERTIFICATE OF AUTHENTICATION

  
	
   

  	
   

  
	
  This is one of the Securities described in
  the Indenture.

  
	
   

  	
   

  
	
   

  	
  Wells Fargo
  Bank, National Association

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Signatory

  
	
   

  	
   

  	
   

  
	
  Dated:  April 18, 2006

  	
   

  	
   

  

 

 

2

 

[Reverse of
Note]

 

4.00%
CONVERTIBLE SENIOR NOTE DUE 2013

 

1.                                       Interest.

 

This Note shall bear interest at a rate of
4.00% per year on the principal hereof, from April 18, 2006 or from the most
recent Interest Payment Date (as defined below) to which payment has been made
or duly provided for, payable semiannually in arrears on April 15 and October
15 of each year, beginning October 15, 2006 (each an “Interest Payment Date”) to the persons in
whose names the Notes are registered at 5:00 p.m., New York City time, on
April 1 and October 1 (each a “Record
Date”) (whether or not a Business Day), as the case may be,
immediately preceding such Interest Payment Date, except with respect to any
Notes that are converted pursuant to paragraph 8 below prior to the
corresponding Interest Payment Date; provided,
however, that interest will be paid on the Maturity Date to a person
other than the Holder on the Record Date or, in connection with a redemption at
the Company’s option pursuant to paragraph 5 below or repurchase at the option
of the Holders pursuant to paragraph 7 below, on the redemption date or
repurchase date, as the case may be, if it is after a Record Date but on or
before the corresponding Interest Payment Date. In any such case, the accrued
and unpaid interest will be paid only to the Holder to whom the principal amount
is paid.. The amount of interest payable for any period shall be computed on
the basis of a 360-day year consisting of twelve 30-day months.

 

Holders of Notes at 5:00 p.m., New York City
time, on a Record Date will receive payment of interest notwithstanding the
conversion of such Notes at any time after 5:00 p.m., New York City time, on
such Record Date. Notes surrendered for conversion by a Holder during the
period from 5:00 p.m., New York City time, on any Record Date to 9:00 a.m., New
York City time, on the immediately following Interest Payment Date must be
accompanied by payment of an amount in cash equal to the interest that the
Holder is to receive on the Notes; provided,
however, that no such payment
need be made if (A) the Company has specified a redemption date that is after a
record date for an interest payment but prior to the corresponding interest
payment date or that results in conversion prior to such interest payment date,
(B) any overdue interest exists at the time of conversion with respect to the
Notes being converted, but only to the extent of the amount of such overdue
interest, or (C) such Holder surrenders any Notes for conversion after the
close of business on the record date relating to the final interest payment
date.

 

2.                                       Method of Payment.

 

Payment of the principal of (and premium, if
any) and any interest on this Note will be paid by check mailed by first-class
mail, postage prepaid, to the Holders of record on the applicable Record Date
at such address as listed with the Registrar; provided,
however, that Holders with Notes in an aggregate principal amount in
excess of $2.0 million will be paid, at their written election, by wire
transfer of immediately available funds. Notwithstanding the foregoing, so  long as this Note is registered in the name
of the Depository (or its nominee), payments of the principal of (including
premium, if any) and interest shall be made in immediately available funds to
the account of the Depository (or its nominee).

 

3

 

3.                                       Paying Agent, Conversion Agent and Registrar.

 

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

 

4.                                       Indenture.

 

This Note is one of a duly authorized issue
of securities of the Company, issued and to be issued in one or more series
under an Indenture, dated as of April 18, 2006 (the “Base Indenture”) among the Company, the Guarantors named
therein and the Trustee, as supplemented by an Officer’s Certificate, dated as
of April 18, 2006 (the “Terms Certificate”
and, together with the Base Indenture, the “Indenture”).
Capitalized terms used herein and not defined herein have the meanings ascribed
thereto in the Indenture. Reference is hereby made to the Indenture for a
statement of the respective rights thereunder of the Company, the Trustee and
the Holders and the terms upon which the Notes are to be authenticated and
delivered. The terms, conditions and provisions of the Notes are those stated
in the Indenture, those made part of the Indenture by reference to the Trust
Indenture Act of 1939, as amended, and those set forth in this Note. To the
extent permitted by applicable law, in the event of any inconsistency between
the terms of this Note and the terms of the Indenture, the terms of the
Indenture shall control.

 

The Notes are senior unsecured obligations of
the Company limited to $50,000,000 aggregate principal amount; provided, however, that if, pursuant to the
terms of the Underwriting Agreement, dated as of April 11, 2006, between the
Company and the Underwriters, the Underwriters exercise their over-allotment
option, then the aggregate principal amount of Notes shall be increased to the
extent of such exercise, up to a maximum of $57,500,000.

 

5.                                       Redemption at the Option of the Company.

 

No sinking
fund is provided for the Notes.

 

At any time
prior to April 15, 2011, the Company may redeem any portion of the Notes at a
redemption price in cash equal to 100% of the principal amount, plus accrued
and unpaid interest to, but not including, the redemption date, plus the Coupon
Make-Whole Payment described in the Indenture, if in the previous 10 Trading
Days ending on the Trading Day before the date of the mailing of the
provisional redemption notice the Volume-Weighted Average Price of the Common
Stock exceeds 150% of the Conversion Price for at least five consecutive
Trading Days.

 

The Notes also will be redeemable, in whole
or in part, at any time on or after April 15, 2011, at the Company’s
option, at a redemption price in cash equal to 100.0% of the principal amount,
plus accrued and unpaid interest to, but not including, the redemption date.

 

If the Paying Agent holds cash sufficient to
pay the redemption price of the Notes for which a redemption notice has been
delivered on the redemption date in accordance with the terms of the Indenture,
then, on and after the redemption date, the Notes will cease to be outstanding
and

 

4

 

interest on such Notes shall cease to accrue,
whether or not the Notes are delivered to the Paying Agent. Thereafter, all
rights of the Holder shall terminate, other than the right to receive the
redemption price upon delivery of the Notes.

 

6.                                       Notice of Redemption.

 

The Company shall give at least 20 days’ but
not more than 60 days’ notice of redemption by mail to Holders. Notes called
for redemption are convertible by the Holder until the close of business on the
Business Day immediately preceding the redemption date.

 

7.                                       Repurchase of Notes at the Option of the Holder
Upon a Fundamental Change.

 

In the event of a Fundamental Change, each
Holder will have the right, at its option, to require the Company to
repurchase, in whole or in part, such Holder’s Notes in integral multiples of
$1,000 principal amount, at a price in cash equal to 100% of the principal
amount of such Notes tendered, plus any accrued and unpaid interest to, but not
including, the repurchase date. The Company shall repurchase the Notes on a
date that is not less than 20 nor more than 45 Business Days after the date the
Company mails the Fundamental Change Notice referred to in the Indenture.

 

If the Paying Agent holds money sufficient to pay the Fundamental
Change Purchase Price of a Note for which a Fundamental Change Purchase Notice
has been delivered and not withdrawn on the Fundamental Change Purchase
pursuant to the terms of the Indenture, then, on and after the Fundamental
Change Purchase Date, such Note will cease to be outstanding and interest on
such Note will cease to accrue, whether or not such Note is delivered to the
Paying Agent. Thereafter, all rights of the Holder shall terminate, other than
the right to receive the Fundamental Change Purchase Price upon delivery of
such Note.

 

8.                                       Conversion.

 

A Holder may convert its Notes, in whole or
in part, into shares of Common Stock at any time prior to the close of business
on the Business Day immediately preceding the Maturity Date, unless the Company
has redeemed or purchased such Notes, only if the conditions described in the
Indenture have been satisfied. Upon conversion, the Company may choose to
deliver, in lieu of Common Stock, cash or a combination of cash and Common
Stock, as provided in the Indenture.

 

The number of shares of Common Stock issuable
upon conversion of a Note shall initially be 249.2522 shares of Common Stock
per $1,000 principal amount at maturity, subject to adjustment in certain
events described in the Indenture. A Holder that surrenders Notes for
conversion will receive cash in lieu of any fractional share of Common Stock as
set forth in the Indenture.

 

No separate payment or adjustment will be
made for accrued and unpaid interest on a converted Note or for dividends or
distributions on any Common Stock issued upon conversion of a Note, except as
provided in the Indenture.

 

5

 

If a Holder
converts its Notes at any time beginning at the opening of business on a
Fundamental Change Notice Date and ending at the close of business on the
second Trading Day immediately preceding the corresponding Fundamental Change
Purchase Date, such Holder shall receive Common Stock, cash or a combination of
Common Stock and cash in accordance with the Indenture, plus a Make-Whole
Premium, determined in accordance with the Indenture.

 

9.                                       Events of Default.

 

If any Event of Default other than as a
result of certain events of bankruptcy, insolvency or reorganization of the
Company or its Significant Subsidiaries occurs and is continuing, the principal
of all the Notes may, subject to the terms of the Indenture, be declared due
and payable in the manner and with the effect provided in the Indenture. If an
Event of Default occurs as a result of certain events of bankruptcy, insolvency
or reorganization of the Company or its Significant Subsidiaries, the principal
of all the Notes shall, subject to the terms of the Indenture, become due and
payable immediately without any declaration or other act on the part of the
Trustee or any Holder with the effect provided in the Indenture.

 

10.                                 Amendments and Waivers.

 

Subject to certain exceptions set forth in
the Indenture, (i) the Indenture or the Notes may be amended with the written
consent or affirmative vote of the Holders of not less than a majority in
aggregate principal amount of the outstanding Notes and (ii) certain Defaults
may be waived with the written consent or affirmative vote of the Holders of
not less than a majority in aggregate principal amount of the outstanding
Notes.

 

The Company and the Trustee may amend or supplement the Indenture or
waive any provision of it without the consent of any Holders of Notes to: (a)
cure any ambiguity, defect, omission, mistake or inconsistency; (b) provide for
uncertificated Notes in addition to or in place of certificated Notes; (c)
provide for the assumption of the Company’s obligations to Holders in the case
of a share exchange, merger or consolidation or sale of all or substantially
all of the Company’s assets; (d) make any change that would provide any
additional rights or benefits to Holders or that does not adversely affect in
any material respect the legal rights under the Indenture of any such Holder;
(e) add a Guarantor; (f) comply with requirements of the SEC in order to effect
or maintain the qualification of the indenture under the TIA; (g) secure the
Notes; (h) comply with the rules of any applicable securities depositary,
including the Depository; (i) conform the text of the Indenture or the Notes to
any provision of the “Description of the Notes” set forth in the Company’s
Prospectus Supplement, dated April 11, 2006, relating to the Notes, to the
extent that the text of the Indenture or the Notes was intended to be a
recitation of the text of such “Description of the Notes”; or (j) provide for a
successor trustee in accordance with the terms of the Indenture or to otherwise
comply with any requirement of the Indenture.

 

11.                                 Denominations; Transfer; Exchange.

 

The Notes are in fully registered form,
without coupons, in denominations of $1,000 of principal amount and integral
multiples of $1,000. A Holder may transfer or exchange Notes in accordance with
the Indenture. The Registrar may require a Holder, among other things, to

 

6

 

furnish appropriate endorsements and transfer
documents and to pay any taxes and fees required by law or permitted by the
Indenture.

 

12.                                 Persons Deemed Owners.

 

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

 

13.                                 Unclaimed Money or Securities.

 

The Trustee and the Paying Agent shall return
to the Company upon written request any money or securities held by them for
the payment of any amount with respect to the Notes that remains unclaimed for
two years, subject to applicable unclaimed property law. After return to the
Company, Holders entitled to the money or securities must look to the Company
for payment as general creditors unless an applicable abandoned property law
designates another Person.

 

14.                                 Trustee Dealings with the Company.

 

Subject to certain limitations imposed by the
TIA, the Trustee under the Indenture, in its individual or any other capacity,
may become the owner or pledgee of Notes and may otherwise deal with and
collect obligations owed to it by the Company or its Affiliates and may
otherwise deal with the Company or its Affiliates with the same rights it would
have if it were not Trustee.

 

15.                                 Calculations in Respect of Securities.

 

The Company will be responsible for making
all calculations called for under the Notes. These calculations include, but
are not limited to, determinations of the Trading Prices of the Notes and
Closing Sale Price of the Common Stock, any accrued interest payable on the
Notes, and the Conversion Rate of the Notes. The Company will make these
calculations in good faith and, absent manifest error, the calculations will be
final and binding on Holders of the Note. The Trustee is entitled to rely upon
the accuracy of such calculations without independent verification. The Trustee
shall forward the Company’s calculations to any Holder of the Notes upon the
request of such Holder.

 

16.                                 No Recourse Against Others.

 

A past, present or future director, officer,
employee, stockholder or incorporator, as such, of the Company or any successor
corporation shall not have any liability for any obligations of the Company
under the Notes or the Indenture or for any claim based on, in respect of, or
by reason of such obligations or their creation. Each Holder by accepting a
Note waives and releases all such liability. The waiver and release are part of
the consideration of issuance of the Notes.

 

17.                                 Authentication.

 

This Note shall not be valid until an
authorized signatory of the Trustee manually signs the Trustee’s Certificate of
Authentication on the other side of this Note.

 

7

 

18.                                 Abbreviations.

 

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

 

THIS INDENTURE AND THE NOTES SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW
THEREOF.

 

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

 

Rentech, Inc.

1331 17th Street, Suite 720 

Denver, Colorado  80202

Attention: General Counsel

 

8

 

ASSIGNMENT FORM

 

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

 

	
   

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

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

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

  
	
   

  
	
  and irrevocably appoint

  	
   

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

  
	
   

  
	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  
	
   

  
	
   

  	
  Your Signature: 

  	
   

  
	
   

  	
  (Sign exactly as your name appears on

  the face of this Note)

  
	
   

  
	
  Signature Guarantee*

  
	
   

  
	
   

  
	
   

  
						

 

*NOTICE: 
The Signature must be guaranteed by an Institution which is a member of
one of the following recognized signature Guarantee Programs:  (i) The Securities Transfer Agent
Medallion Program (STAMP); (ii) The New York Stock Exchange Medallion
Program (MNSP); (iii) The Stock Exchange Medallion Program (SEMP); or
(iv) in such other guarantee program acceptable to the Trustee.

 

9

 

CONVERSION NOTICE

 

To convert this Note into shares of Common
Stock of the Company, check the box o.  To convert only part of this Note, state the
principal amount at maturity to be converted
                                                               
(which must be $1,000 or an integral multiple

of $1,000):

 

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

 

	
   

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

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

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

  
	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  	
  Your Signature:

  
	
   

  
	
   

  	
   

  
	
   

  	
  (Sign exactly as your name appears on the other side

  of this Note)

  
	
   

  	
   

  
	
   

  
	
  *Signature guaranteed by:

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
						

 

 

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

 

10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]