Document:

EX-4.1 INDENTURE WEBMD CORPORATION & BANK OF NY

 

Exhibit 4.1

WEBMD CORPORATION

and

THE BANK OF NEW YORK

as Trustee

INDENTURE

Dated as of June 25, 2003

$300,000,000 Principal Amount

(Plus Option)

1.75% Convertible Subordinated Notes due June 15, 2023

 

 

CROSS-REFERENCE TABLE*

	 	 	 	 	 	 
	TIA	 	Indenture
	Section	 	Section
	
	 	

	310	(a)(1)
	 	 	7.10	 
	 	(a)(2)
	 	 	7.10	 
	 	(a)(3)
	 	 	N.A.	 
	 	(a)(4)
	 	 	N.A.	 
	 	(b)
	 	 	7.08; 7.10; 12.02	 
	 	(c)
	 	 	N.A.	 
	311	(a)
	 	 	7.11	 
	 	(b)
	 	 	7.11	 
	 	(c)
	 	 	N.A.	 
	312	(a)
	 	 	2.05	 
	 	(b)
	 	 	12.03	 
	 	(c)
	 	 	12.03	 
	313	(a)
	 	 	7.06	 
	 	(b)(1)
	 	 	N.A.	 
	 	(b)(2)
	 	 	7.06	 
	 	(c)
	 	 	7.06; 12.02	 
	 	(d)
	 	 	7.06	 
	314	(a)
	 	 	4.03	 
	 	(b)
	 	 	N.A.	 
	 	(c)(1)
	 	 	12.04	 
	 	(c)(2)
	 	 	12.04	 
	 	(c)(3)
	 	 	N.A.	 
	 	(d)
	 	 	N.A.	 
	 	(e)
	 	 	12.05	 
	 	(f)
	 	 	N.A.	 
	315	(a)
	 	 	7.01(B) 	 
	 	(b)
	 	 	7.05; 12.02	 
	 	(c)
	 	 	7.01(A)	 
	 	(d)
	 	 	7.01(C)	 
	 	(e)
	 	 	6.11	 
	316	(a)(last sentence)
	 	 	2.09	 
	 	(a)(1)(A)
	 	 	6.05	 
	 	(a)(1)(B)
	 	 	6.04	 
	 	(a)(2)
	 	 	N.A.	 
	 	(b)
	 	 	6.07	 
	317	(a)(1)
	 	 	6.08	 
	 	(a)(2)
	 	 	6.09	 
	 	(b)
	 	 	2.04	 
	318	(a)
	 	 	12.01	 

	*	This Cross-Reference Table is not part of the Indenture.

i

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Page
	 	 	 	 	 	 	 	

	ARTICLE I
	 	DEFINITIONS AND INCORPORATION BY REFERENCE	 	 	1	 
	 	1.01
	 	Definitions	 	 	1	 
	 	1.02
	 	Other Definitions	 	 	4	 
	 	1.03
	 	Incorporation by Reference of Trust Indenture Act	 	 	6	 
	 	1.04
	 	Rules of Construction	 	 	6	 
	 
	ARTICLE II
	 	THE SECURITIES	 	 	7	 
	 	2.01
	 	Form and Dating	 	 	7	 
	 	2.02
	 	Execution and Authentication	 	 	7	 
	 	2.03
	 	Registrar, Paying Agent and Conversion Agent	 	 	8	 
	 	2.04
	 	Paying Agent To Hold Money in Trust	 	 	9	 
	 	2.05
	 	Securityholder Lists	 	 	9	 
	 	2.06
	 	Transfer and Exchange	 	 	9	 
	 	2.07
	 	Replacement Securities	 	 	10	 
	 	2.08
	 	Outstanding Securities	 	 	10	 
	 	2.09
	 	Securities Held by the Company or an Affiliate	 	 	10	 
	 	2.10
	 	Temporary Securities	 	 	11	 
	 	2.11
	 	Cancellation	 	 	11	 
	 	2.12
	 	Defaulted Interest	 	 	11	 
	 	2.13
	 	CUSIP Numbers	 	 	11	 
	 	2.14
	 	Deposit of Moneys	 	 	11	 
	 	2.15
	 	Book-Entry Provisions for Global Securities	 	 	12	 
	 	2.16
	 	Special Transfer Provisions	 	 	13	 
	 	2.17
	 	Restrictive Legends	 	 	14	 
	 
	ARTICLE III
	 	REDEMPTION AND REPURCHASE	 	 	15	 
	 	3.01
	 	Right of Redemption	 	 	15	 
	 	3.02
	 	Notices to Trustee of Redemption	 	 	15	 
	 	3.03
	 	Selection of Securities to Be Redeemed	 	 	15	 
	 	3.04
	 	Notice of Redemption	 	 	16	 
	 	3.05
	 	Effect of Notice of Redemption	 	 	17	 
	 	3.06
	 	Deposit of Redemption Price	 	 	17	 
	 	3.07
	 	Securities Redeemed in Part	 	 	17	 
	 	3.08
	 	Repurchase of Securities at Option of the Holder	 	 	17	 
	 	3.09
	 	Repurchase Upon a Change in Control	 	 	19	 
	 	3.10
	 	Conversion Arrangement on Call for Redemption	 	 	25	 
	 	3.11
	 	Effect of Repurchase Notice or Change in Control Repurchase Notice	 	 	26	 
	 	3.12
	 	Covenant to Comply With Securities Laws Upon Purchase of Securities	 	 	27	 

ii

 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Page
	 	 	 	 	 	 	 	

	ARTICLE IV
	 	COVENANTS	 	 	27	 
	 	4.01
	 	Payment of Securities	 	 	27	 
	 	4.02
	 	Maintenance of Office or Agency	 	 	28	 
	 	4.03
	 	Reports	 	 	28	 
	 	4.04
	 	Compliance Certificate	 	 	29	 
	 	4.05
	 	Stay, Extension and Usury Laws	 	 	29	 
	 	4.06
	 	Corporate Existence	 	 	29	 
	 	4.07
	 	Notice of Default	 	 	29	 
	 	4.08
	 	Tax Treatment of Securities	 	 	29	 
	 
	ARTICLE V
	 	SUCCESSORS	 	 	31	 
	 	5.01
	 	When Company May
Merge, etc.	 	 	31	 
	 	5.02
	 	Successor Substituted	 	 	31	 
	 
	ARTICLE VI
	 	DEFAULTS AND REMEDIES	 	 	32	 
	 	6.01
	 	Events of Default	 	 	32	 
	 	6.02
	 	Acceleration	 	 	33	 
	 	6.03
	 	Other Remedies	 	 	34	 
	 	6.04
	 	Waiver of Past Defaults	 	 	34	 
	 	6.05
	 	Control by Majority	 	 	34	 
	 	6.06
	 	Limitation on Suits	 	 	34	 
	 	6.07
	 	Rights of Holders to Receive Payment	 	 	35	 
	 	6.08
	 	Collection Suit by Trustee	 	 	35	 
	 	6.09
	 	Trustee May File Proofs of Claim	 	 	35	 
	 	6.10
	 	Priorities	 	 	36	 
	 	6.11
	 	Undertaking for Costs	 	 	36	 
	 
	ARTICLE VII
	 	TRUSTEE	 	 	37	 
	 	7.01
	 	Duties of Trustee	 	 	37	 
	 	7.02
	 	Rights of Trustee	 	 	37	 
	 	7.03
	 	Individual Rights of Trustee	 	 	39	 
	 	7.04
	 	Trustee’s Disclaimer	 	 	39	 
	 	7.05
	 	Notice of Defaults	 	 	39	 
	 	7.06
	 	Reports by Trustee to Holders	 	 	39	 
	 	7.07
	 	Compensation and Indemnity	 	 	40	 
	 	7.08
	 	Replacement of Trustee	 	 	40	 
	 	7.09
	 	Successor Trustee by
Merger, etc.	 	 	41	 
	 	7.10
	 	Eligibility; Disqualification	 	 	41	 
	 	7.11
	 	Preferential Collection of Claims Against Company	 	 	41	 
	 
	ARTICLE VIII
	 	DISCHARGE OF INDENTURE	 	 	42	 
	 	8.01
	 	Termination of the Obligations of the Company	 	 	42	 
	 	8.02
	 	Application of Trust Money	 	 	43	 
	 	8.03
	 	Repayment to Company	 	 	43	 
	 	8.04
	 	Reinstatement	 	 	43	 

iii

 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Page
	 	 	 	 	 	 	 	

	ARTICLE IX
	 	AMENDMENTS	 	 	44	 
	 	9.01
	 	Without Consent of Holders	 	 	44	 
	 	9.02
	 	With Consent of Holders	 	 	44	 
	 	9.03
	 	Compliance with Trust Indenture Act	 	 	45	 
	 	9.04
	 	Revocation and Effect of Consents	 	 	45	 
	 	9.05
	 	Notation on or Exchange of Securities	 	 	46	 
	 	9.06
	 	Trustee Protected	 	 	46	 
	 
	ARTICLE X
	 	CONVERSION	 	 	46	 
	 	10.01
	 	Conversion Privilege; Restrictive Legends	 	 	46	 
	 	10.02
	 	Conversion Procedure	 	 	49	 
	 	10.03
	 	Fractional Shares	 	 	51	 
	 	10.04
	 	Taxes on Conversion	 	 	51	 
	 	10.05
	 	Company to Provide Stock	 	 	51	 
	 	10.06
	 	Adjustment of Conversion Rate	 	 	51	 
	 	10.07
	 	No Adjustment	 	 	56	 
	 	10.08
	 	Other Adjustments	 	 	56	 
	 	10.09
	 	Adjustments for Tax Purposes	 	 	57	 
	 	10.10
	 	Notice of Adjustment	 	 	57	 
	 	10.11
	 	Notice of Certain Transactions	 	 	57	 
	 	10.12
	 	Effect of
Reclassifications, Consolidations, Mergers, Binding Share Exchanges or Sales on Conversion Privilege	 	 	57	 
	 	10.13
	 	Trustee’s Disclaimer	 	 	58	 
	 
	ARTICLE XI
	 	SUBORDINATION	 	 	59	 
	 	11.01
	 	Agreement to Subordinate	 	 	59	 
	 	11.02
	 	Certain Definitions	 	 	59	 
	 	11.03
	 	Liquidation; Dissolution; Bankruptcy	 	 	60	 
	 	11.04
	 	Company Not To Make
Payments with Respect to Securities in Certain Circumstances	 	 	60	 
	 	11.05
	 	Acceleration of Securities	 	 	61	 
	 	11.06
	 	When Distribution Must Be Paid Over	 	 	61	 
	 	11.07
	 	Notice by Company	 	 	61	 
	 	11.08
	 	Subrogation	 	 	61	 
	 	11.09
	 	Relative Rights	 	 	62	 
	 	11.10
	 	Subordination May Not Be Impaired by Company	 	 	62	 
	 	11.11
	 	Distribution or Notice to Representative	 	 	62	 
	 	11.12
	 	Rights of Trustee and Paying Agent	 	 	62	 
	 	11.13
	 	Officers’ Certificate	 	 	63	 
	 	11.14
	 	Not to Prevent Events of Default	 	 	63	 
	 
	ARTICLE XII
	 	MISCELLANEOUS	 	 	64	 
	 	12.01
	 	Trust Indenture Act Controls	 	 	64	 
	 	12.02
	 	Notices	 	 	65	 
	 	12.03
	 	Communication by Holders with Other Holders	 	 	63	 

iv

 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Page
	 	 	 	 	 	 	 	

	 	12.04
	 	Certificate and Opinion as to Conditions Precedent	 	 	65	 
	 	12.05
	 	Statements Required in Certificate or Opinion	 	 	65	 
	 	12.06
	 	Rules by Trustee and Agents	 	 	66	 
	 	12.07
	 	Legal Holidays	 	 	66	 
	 	12.08
	 	No Recourse Against Others	 	 	66	 
	 	12.09
	 	Duplicate Originals	 	 	66	 
	 	12.10
	 	Governing Law	 	 	66	 
	 	12.11
	 	No Adverse Interpretation of Other Agreements	 	 	66	 
	 	12.12
	 	Successors	 	 	67	 
	 	12.13
	 	Separability	 	 	67	 
	 	12.14
	 	Table of Contents,
Headings, etc.	 	 	67	 

EXHIBITS

	 	 	 	 	 
	Exhibit A	 	
-
	 	Form of Global Security
	Exhibit B	 	
-
	 	Form of Legends
	Exhibit C	 	
-
	 	Form of Notice of Transfer Pursuant to Registration Statement
	Exhibit D	 	
-
	 	Form of Opinion of Counsel in Connection with Registration
of Securities
	Exhibit E	 	
-
	 	Projected Payment Schedule

v

 

          INDENTURE,
dated as of June 25, 2003, between WebMD Corporation, a Delaware
corporation (the “ Company”), and The Bank of New York, as
trustee (the “Trustee”).

          Each
party agrees as follows for the other parties and for the equal and
ratable benefit of the Holders of the Company's 1.75% Convertible
Subordinated Notes due June 15, 2023 (the
“Securities”).

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

     1.01 Definitions.

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

          “Agent” means any Registrar, Paying Agent, Conversion Agent or
co-registrar.

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

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

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

          “Cash” means U.S. legal tender currency.

          “Common Stock” means the common stock, par value $0.0001 per share, of the
Company, or such other capital stock into which the Company’s common stock is
reclassified or changed.

          “Company” means the party named as such above until a successor replaces
it pursuant to the applicable provision hereof and thereafter means the
successor.

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

1

 

          “Conversion Period” means the period from and including the eleventh
Trading Day in a fiscal quarter of the Company up to, but not including, the
eleventh Trading Day of the following fiscal quarter of the Company.

          “Conversion Price” means an amount equal to $1,000 principal amount of
Securities divided by the then current conversion rate.

          “Corporate Trust Office of the Trustee” shall be at the address of the
Trustee specified in Section 12.02 or such other address as the Trustee may
give notice of to the Company.

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

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

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

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

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

          “Initial Purchaser” means Banc of America Securities LLC.

          “interest” includes liquidated damages, unless the context otherwise
requires.

          “liquidated damages” has the meaning provided in the Registration Rights
Agreement.

          “Make Whole Payment” means, with respect to each $1,000 principal amount
of Securities being redeemed by the Company on or after June 15, 2008 and prior
to June 20, 2010, a Cash amount equal to $259.26, minus the sum of (a) the
amount of any regular interest paid and (b) accrued and unpaid on such Security
prior to the Redemption Date for such Security.

          “Maturity Date” means June 15, 2023.

          “Non-Recourse Indebtedness” means Indebtedness upon the enforcement of
which recourse may be had by the holder(s) thereof only to identified assets of
the Company or any Subsidiary and not to the Company or any Subsidiary
personally.

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

          “Officers’ Certificate” means a certificate signed by two Officers or by
an Officer and an Assistant Treasurer or an Assistant Secretary of the Company.

2

 

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

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

          “Purchase Agreement” means the Purchase Agreement dated June 20, 2003
between the Company and the Initial Purchaser.

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

          “Redemption Date” means, with respect to Securities to be redeemed by the
Company in accordance with Section 3.01, the business day specified for
redemption of such Security in accordance with the terms of the Securities and
this Indenture, as set forth in a notice of redemption.

          “Redemption Price” means, with respect to Securities to be redeemed by the
Company in accordance with Section 3.01, a Cash amount equal to (i) if the
Redemption Date is on or after June 15, 2008 and prior to June 20, 2010, the
sum of 100% of the outstanding principal amount of such Securities and the Make
Whole Payment related to such Securities, or (ii) if the Redemption Date is on
or after June 20, 2010, 100% of the outstanding principal amount of such
Securities.

          “Registration Rights Agreement” means the Registration Rights Agreement,
dated as of June 25, 2003, between the Company and the Initial Purchaser.

          “Repurchase Price” means, with respect to Securities duly tendered for
purchase by the Company in accordance with Section 3.08 or Section 3.09, 100%
of the outstanding principal amount of such Securities so tendered.

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

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

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

3

 

          “Rule 144A Global Security” means a permanent Global Security in
registered form representing the aggregate principal amount of Securities sold
in reliance on Rule 144A.

          “Sale Price” means the price of a share of Common Stock on the relevant
date, determined on the basis of the last reported per share sale price (or, if
no last 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) of the Common Stock on such date as reported on the NASDAQ National
Market, or if the Common Stock is not quoted on the NASDAQ National Market, as
reported by the principal U.S. exchange or quotation system the Common Stock is
then listed or quoted; provided, however, in the absence of such quotations,
the Board of Directors will make a good faith determination of the Sale Price.

          “SEC” means the U.S. Securities and Exchange Commission.

          “Securities” means the 1.75% Convertible Subordinated Notes due June 15,
2023 issued by the Company pursuant to this Indenture.

          “Securities Act” means the Securities Act of 1933, as amended.

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

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

          “TIA” means the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb)
as in effect on the date of this Indenture, except as provided in Section 9.03.

          “Trading Day” means a day during which trading in securities generally
occurs on the NASDAQ National Market or, if the Common Stock is not quoted on
the NASDAQ National Market, on the principal other national or regional
securities exchange on which the Common Stock is then listed or quoted.

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

4

 

     1.02 Other Definitions.

	 	 	 	 	 
	Term	 	Defined in Section
	
	 	

	“95% Trading Condition”	 	 	
10.01	 
	“Additional Securities”	 	 	
2.01	 
	“Bankruptcy Law”	 	 	
6.01	 
	“business day”	 	 	
12.07	 
	“Cash”	 	 	
3.08	 
	“Change in Control”	 	 	
3.09	 
	“Change in Control Notice”	 	 	
3.09	 
	“Change in Control Repurchase Date”	 	 	
3.09	 
	“Change in Control Repurchase Right”	 	 	
3.09	 
	“Commencement Date”	 	 	
10.06	 
	“Company Notice”	 	 	
3.08	 
	“Company Notice Date”	 	 	
3.08	 
	“comparable yield”	 	 	
4.08	 
	“Contingent Payment Regulations”	 	 	
4.08	 
	“Conversion Agent”	 	 	
2.03	 
	“conversion date”	 	 	
10.02	 
	“conversion rate”	 	 	
10.01	 
	“Conversion Shares”	 	 	
10.01	 
	“Custodian”	 	 	
6.01	 
	“Determination Date”	 	 	
10.06	 
	“Distribution Date”	 	 	
10.06	 
	“Event of Default”	 	 	
6.01	 
	“ex-dividend date”	 	 	
10.01	 
	“Expiration Time”	 	 	
10.06	 
	“Global Security”	 	 	
2.01	 
	“Global Security Legend”	 	 	
2.17	 
	“Indebtedness”	 	 	
11.02	 
	“Legal Holiday”	 	 	
11.07	 
	“Market Price”	 	 	
3.09	 
	“Participants”	 	 	
2.15	 
	“Paying Agent”	 	 	
2.03	 
	“Payment Blockage”	 	 	
11.04	 
	“Payment Blockage Notice”	 	 	
11.04	 
	“Physical Securities”	 	 	
2.01	 
	“Principal Value Conversion”	 	 	
10.02	 
	“Principal Value Conversion Notice”	 	 	
10.02	 
	“Private Placement Legend”	 	 	
2.17	 
	“Purchased Shares”	 	 	
10.06	 
	“Registrar”	 	 	
2.03	 
	“Representative”	 	 	
11.02	 
	“Repurchase Date”	 	 	
3.08	 
	“Repurchase Right”	 	 	
3.08	 
	“Resale Restriction Termination Date”	 	 	
2.16	 
	“Rights”	 	 	
10.06	 
	“Senior Indebtedness”	 	 	
11.02	 
	“Trading Price”	 	 	
10.01	 
	“U.S. Government Obligations”	 	 	
8.01	 

5

 

     1.03 Incorporation by Reference of Trust Indenture Act.

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

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

          “Commission” means the SEC.

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

     1.04 Rules of Construction.

          Unless the context otherwise requires:

		
	 	     (i) a term has the meaning assigned to it;
	 
	 	     (ii) an accounting term not otherwise defined has the meaning
assigned to it in accordance with generally accepted accounting
principles in effect on the date hereof;
	 
	 	     (iii) “or” is not exclusive;
	 
	 	     (iv) words in the singular include the plural and in the plural
include the singular;
	 
	 	     (v) provisions apply to successive events and transactions; and
	 
	 	     (vi) “herein,” “hereof” and other words of similar import refer to
this Indenture as a whole and not to any particular Article, Section or
other subdivision.

6

 

ARTICLE II

THE SECURITIES

     2.01 Form and Dating.

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

          Securities offered and sold in reliance on Rule 144A under the Securities
Act shall be issued initially in the form of one or more Global Securities,
substantially in the form set forth in Exhibit A (each, a “Global Security”),
deposited with the Trustee, as custodian for the Depositary, duly executed by
the Company and authenticated by the Trustee as hereinafter provided and
bearing the legends set forth in Exhibits B-1 and B-2. The aggregate principal
amount of the Global Securities may from time to time be increased or decreased
by adjustments made on the records of the Trustee, as custodian for the
Depositary, as hereinafter provided; provided that in no event shall the
aggregate principal amount of the Global Security or Securities exceed
$300,000,000, or $350,000,000 if the Initial Purchaser elects to purchase
additional Securities pursuant to the option provided for in Section 1 of the
Purchase Agreement (the “Additional Securities”).

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

     2.02 Execution and Authentication.

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

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

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

          Upon a written order of the Company signed by one Officer of the Company,
the Trustee shall authenticate Securities for original issue in the aggregate
principal amount of $300,000,000 and such additional principal amount, if any,
as shall be determined pursuant to the next sentence of this Section 2.02.
Upon receipt by the Trustee of an Officers’ Certificate stating that the
Initial Purchaser has elected to purchase from the Company a specified
principal amount of Additional Securities, not to exceed $50,000,000, pursuant
to Section l of the Purchase Agreement, the Trustee shall authenticate and
deliver such specified principal amount of Additional Securities to or upon the
written order of the Company signed as provided in the

7

 

immediately preceding sentence. Such Officers’ Certificate must be
received by the Trustee not later than the proposed date for delivery of such
Additional Securities. The aggregate principal amount of Securities
outstanding at any time may not exceed $350,000,000 except as provided in
Section 2.07.

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

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

          If a written order of the Company pursuant to this Section 2.02 of the
Indenture has been, or simultaneously is, delivered, any instructions by the
Company to the Trustee with respect to endorsement, delivery or redelivery of a
Security issued in global form shall be in writing but need not comply with
Section 12.04 hereof and need not be accompanied by an Opinion of Counsel.

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

     2.03 Registrar, Paying Agent and Conversion Agent.

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

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

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

8

 

     2.04 Paying Agent To Hold Money in Trust.

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

     2.05 Securityholder Lists.

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

     2.06 Transfer and Exchange.

          Subject to Sections 2.15 and 2.16 hereof, where Securities are presented
to the Registrar with a request to register their transfer or to exchange them
for an equal principal amount of Securities of other authorized denominations,
the Registrar shall register the transfer or make the exchange if its
requirements for such transaction are met. To permit registrations of transfer
and exchanges, the Trustee shall authenticate Securities at the Registrar’s
request. The Company or the Trustee, as the case may be, shall not be required
(a) to issue, authenticate, register the transfer of or exchange any Security
during a period beginning at the opening of business 15 days before the mailing
of a notice of redemption of the Securities selected for redemption under
Section 3.04 and ending at the close of business on the day of such mailing or
(b) to register the transfer of or exchange any Security so selected for
redemption or repurchase in whole or in part, except the unredeemed or
unrepurchased portion of Securities being redeemed or repurchased in part.

          No service charge shall be made for any transfer, exchange or conversion
of Securities, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection with any
transfer, exchange or conversion of Securities, other than exchanges pursuant
to Section 2.10, 3.07, 3.08, 3.09, 9.05 or 10.02 not involving any transfer.

9

 

     2.07 Replacement Securities.

          If the Holder of a Security claims that the Security has been mutilated,
lost, destroyed or wrongfully taken, the Company shall issue and the Trustee
shall authenticate a replacement Security if the Trustee’s requirements are met
and, in the case of a mutilated Security, such mutilated Security is
surrendered to the Trustee. In the case of lost, destroyed or wrongfully taken
Securities, if required by the Trustee, an indemnity bond must be provided by
the Holder that is sufficient in the judgment of the Trustee to protect the
Company, the Trustee or any Agent from any loss which any of them may suffer if
a Security is replaced. The Trustee may charge for its expenses in replacing a
Security.

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

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

     2.08 Outstanding Securities.

          Securities outstanding at any time are all the Securities authenticated by
the Trustee except for those converted, those cancelled by it, those delivered
to it for cancellation and those described in this Section as not outstanding.
Except to the extent provided in Section 2.09, a Security does not cease to be
outstanding because the Company or one of its subsidiaries or Affiliates holds
the Security.

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

          If the Paying Agent (other than the Company) holds on a Redemption Date,
Repurchase Date or maturity date money sufficient to pay Securities payable on
that date, then on and after that date, such Securities shall be deemed to be
no longer outstanding and interest on them shall cease to accrue, and such
Security shall be deemed paid whether or not the Security is delivered to the
Paying Agent. Thereafter, all other rights of the Holders of such Securities
shall terminate with respect to such Securities, other than the right to
receive the Redemption Price, Repurchase Price or principal amount, as
applicable.

     2.09 Securities Held by the Company or an Affiliate.

          In determining whether the Holders of the required aggregate principal
amount of Securities have concurred in any direction, waiver or consent,
Securities owned by the Company or any of its subsidiaries or an Affiliate
shall be considered as though not outstanding, except that for the purposes of
determining whether the Trustee shall be protected in relying on any such
direction, waiver or consent, only Securities which a Responsible Officer of
the Trustee knows are so owned shall be so disregarded.

10

 

     2.10 Temporary Securities.

          Until definitive Securities are ready for delivery, the Company may
prepare and the Trustee shall authenticate temporary Securities. Temporary
Securities shall be substantially in the form of definitive Securities but may
have variations that the Company considers appropriate for temporary
Securities. Without unreasonable delay, the Company shall prepare and the
Trustee shall authenticate definitive Securities in exchange for temporary
Securities.

     2.11 Cancellation.

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

     2.12 Defaulted Interest.

          If and to the extent the Company defaults in a payment of interest on the
Securities, the Company shall pay the defaulted interest in any lawful manner
plus, to the extent not prohibited by applicable statute or case law, interest
payable on the defaulted interest at the rate provided in the Securities. The
Company may pay the defaulted interest to the persons who are Securityholders
on a subsequent special record date. The Company shall fix such record date
and payment date. At least 15 days before the record date, the Company shall
mail to Securityholders a notice that states the record date, payment date and
amount of interest to be paid.

     2.13 CUSIP Numbers.

          The Company in issuing the Securities may use one or more “CUSIP” numbers,
and if so, the Trustee shall use the CUSIP numbers in notices of redemption or
exchange as a convenience to Holders; provided, however, that no representation
is hereby deemed to be made by the Trustee as to the correctness or accuracy of
the CUSIP numbers printed in the notice or on the Securities, and that reliance
may be placed only on the other identification numbers printed on the
Securities. The Company shall promptly notify the Trustee of any change in the
CUSIP numbers.

     2.14 Deposit of Moneys.

          Prior to 11:00 a.m., New York City time, on each interest payment date,
Maturity Date, Redemption Date, Repurchase Date and Change in Control
Repurchase Date, the Company shall deposit with the Paying Agent in immediately
available funds money sufficient to make Cash payments, if any, due on such
interest payment date, Maturity Date, Redemption Date, Repurchase Date and
Change in Control Repurchase Date, as the case may be, in a timely manner which
permits the Paying Agent to remit payment to the Holders on such interest

11

 

payment date, Maturity Date, Redemption Date, Repurchase Date, and Change
in Control Repurchase Date, as the case may be.

     2.15 Book-Entry Provisions for Global Securities.

		
	 	     [Paragraphs (A) - (C)
Intentionally Omitted]
	 
	 	     (D) The Global Securities initially shall (i) be registered in the
name of the Depositary or the nominee of such Depositary, (ii) be
delivered to the Trustee as custodian for such Depositary and (iii) bear
legends as set forth in Section 2.17.
	 
	 	     (E) Members of, or participants in, the Depositary (“Participants”)
shall have no rights under this Indenture with respect to any Global
Security, and the Depositary may be treated by the Company, the Trustee
and any agent of the Company or the Trustee as the absolute owner of the
Global Security for all purposes whatsoever. Notwithstanding the
foregoing, nothing herein shall prevent the Company, the Trustee or any
agent of the Company or the Trustee from giving effect to any written
certification, proxy or other authorization furnished by the Depositary
or impair, as between the Depositary and Participants, the operation of
customary practices governing the exercise of the rights of a Holder of
any Security.
	 
	 	     (F) Transfers of Global Securities shall be limited to transfers in
whole, but not in part, to the Depositary, its successors or their
respective nominees. In addition, Physical Securities shall be
transferred to all beneficial owners in exchange for their beneficial
interests in Global Securities only if (i) the Depositary notifies the
Company that it is unwilling or unable to continue as Depositary for any
Global Security and a successor Depositary is not appointed by the
Company within 90 days of such notice or (ii) an Event of Default has
occurred and is continuing and the Registrar has received a written
request from the Depositary to issue Physical Securities.
	 
	 	     (G) In connection with the transfer of a Global Security in its
entirety to beneficial owners pursuant to Section 2.15(F), such Global
Security shall be deemed to be surrendered to the Trustee for
cancellation, and the Company shall execute, and the Trustee shall upon
written instructions from the Company authenticate and deliver, to each
beneficial owner identified by the Depositary in exchange for its
beneficial interest in such Global Security, an equal aggregate principal
amount of Physical Securities of authorized denominations.
	 
	 	     (H) Any Physical Security constituting a Restricted Security
delivered in exchange for an interest in a Global Security pursuant to
Section 2.15(F) shall, except as otherwise provided by Section 2.16, bear
the Private Placement Legend (as defined).
	 
	 	     (I) The Holder of any Global Security may grant proxies and
otherwise authorize any person, including Participants and persons that
may hold interests through Participants, to take any action which a
Holder is entitled to take under this Indenture or the Securities.

12

 

     2.16 Special Transfer Provisions.

		
	 	     (A) Transfers to QIBs. The Registrar shall register the transfer of
any Restricted Security, whether or not such Security bears the Private
Placement Legend, if (x) the requested transfer is after the later of the
second anniversary after (i) the issue date for the Securities and (ii)
the last date on which the Company or any Affiliate of the Company was
the owner of such Security (or any predecessor security) (or such shorter
period of time as permitted by Rule 144(k) under the Securities Act or
any successor provision thereunder) (or such longer period of time as may
be required under the Securities Act or applicable state securities laws
in the opinion of counsel for the Company, unless otherwise agreed
between the Company and the Holder thereof) (“such later date being the
“Resale Restriction Termination Date”), or (y) such transfer is being
made by a proposed transferor who has checked the box provided for on the
form of Security stating, or has otherwise advised the Company and the
Registrar in writing, that the sale has been made in compliance with the
provisions of Rule 144A to a transferee who has signed the certification
provided for on the form of Security stating, or has otherwise advised
the Company and the Registrar in writing, that it is purchasing the
Security for its own account or an account with respect to which it
exercises sole investment discretion and that it and any such account is
a QIB within the meaning of Rule 144A, and is aware that the sale to it
is being made in reliance on Rule 144A and acknowledges that it has
received such information regarding the Company as it has requested
pursuant to Rule 144A or has determined not to request such information
and that it is aware that the transferor is relying upon its foregoing
representations in order to claim the exemption from registration
provided by Rule 144A.

		
	 	     (B) Restrictions on Transfer and Exchange of Global Securities.
Notwithstanding any other provisions of this Indenture, a Global Security
may not be transferred except as a whole by the Depositary to a nominee
of the Depositary or by a nominee of the Depositary to the Depositary or
another nominee of the Depositary or by the Depositary or any such
nominee to a successor Depositary or a nominee of such successor
Depositary.

		
	 	     (C) Private Placement Legend. Upon the transfer, exchange or
replacement of Securities not bearing the Private Placement Legend, the
Registrar shall deliver Securities that do not bear the Private Placement
Legend. Upon the transfer, exchange or replacement of Securities bearing
the Private Placement Legend, the Registrar shall deliver only Securities
that bear the Private Placement Legend until after the second anniversary
of the later of (i) the issue date for the Securities, (ii) the last date
on which the Company or any Affiliate of the Company was the owner of
such Security (or any predecessor security) (or such shorter period of
time as permitted by Rule 144(k) under the Securities Act or any
successor provision thereunder) (or such longer period of time as may be
required under the Securities Act or applicable state securities laws in
the opinion of counsel for the Company, unless otherwise agreed between
the Company and the Holder thereof), (y) there is delivered to the
Trustee an Opinion of Counsel reasonably satisfactory to the Company to
the effect that neither such legend nor the

13

 

		
	 	related restrictions on transfer are required in order to maintain
compliance with the provisions of the Securities Act or (z) such Security
has been sold pursuant to an effective registration statement under the
Securities Act and the Holder selling such Securities has delivered to
the Registrar a notice in the form of Exhibit C hereto. Upon the
effectiveness of a Shelf Registration Statement (as defined in the
Registration Rights Agreement), the Company shall deliver to the Trustee
a notice of effectiveness, a Security or Securities, an authentication
order in accordance with Section 2.02 and an opinion of counsel in the
form of Exhibit D hereto and, if required by the Depositary, the Company
shall deliver to the Depositary a letter of representations in a form
reasonably acceptable to the Depositary.

		
	 	     (D) General. By its acceptance of any Security bearing the Private
Placement Legend, each Holder of such a Security acknowledges the
restrictions on transfer of such Security set forth in this Indenture and
in the Private Placement Legend and agrees that it will transfer such
Security only as provided in this Indenture.

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

		
	 	     (E) Transfers of Securities Held by Affiliates. Any certificate (i)
evidencing a Security that has been transferred to an Affiliate of the
Company within two years after the issue date for the Securities, as
evidenced by a notation on the Assignment Form for such transfer or in
the representation letter delivered in respect thereof or (ii) evidencing
a Security that has been acquired from an Affiliate (other than by an
Affiliate) in a transaction or a chain of transactions not involving any
public offering, shall, until two years after the last date on which the
Company or any Affiliate of the Company was an owner of such Security, in
each case, bear the Private Placement Legend, unless otherwise agreed by
the Company (with written notice thereof to the Trustee).

     2.17 Restrictive Legends.

          Each Global Security and Physical Security that constitutes a Restricted
Security shall bear the legend (the “Private Placement Legend”) as set forth in
Exhibit B-1 on the face thereof until after the second anniversary of the later
of (i) the issue date for the Securities, (ii) the last date on which the
Company or any Affiliate of the Company was the owner of such Security (or any
predecessor security) (or such shorter period of time as permitted by Rule
144(k) under the Securities Act or any successor provision thereunder) (or such
longer period of time as may be required under the Securities Act or applicable
state securities laws in the opinion of counsel for the Company, unless
otherwise agreed between the Company and the Holder thereof).

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

14

 

ARTICLE III

REDEMPTION AND REPURCHASE

     3.01 Right of Redemption.

          Redemption of the Securities, as permitted by any provision of this
Indenture, shall be made in accordance with Paragraphs 6 and 7 of the
Securities and in accordance with this Article III. The Company will not have
the right to redeem any Securities prior to June 15, 2008. On or after June
15, 2008, the Company will have the right to redeem for Cash all or any part of
the Securities, subject to the conditions specified in Paragraph 6 of the
Securities, at the applicable Redemption Price, plus accrued and unpaid
interest (including contingent interest, if any) and liquidated damages, if
any, thereon to, but not including, the Redemption Date,
provided that, if such
Redemption Date is on or after an interest record date, but on or prior to the
related interest payment date, such interest and liquidated damages will be
payable to the Holders in whose names the Securities are registered at the
close of business on the relevant record date for payment of such interest.

          The Make Whole Payment portion of the Redemption Price, if any, shall be
paid on all Securities being redeemed by the Company on the relevant Redemption
Date, including any Securities that may have been converted after the date of
the notice of redemption and prior to such Redemption Date.

     3.02 Notices to Trustee of Redemption.

          If the Company elects to redeem Securities pursuant to Paragraph 6 of the
Securities, it shall notify the Trustee at least 15 days prior to the mailing
of the notice of redemption (unless a shorter notice period shall be
satisfactory to the Trustee) of the Redemption Date and the aggregate principal
amount of Securities to be redeemed.

     3.03 Selection of Securities to Be Redeemed.

          If the Company elects to redeem Securities pursuant to Paragraph 6 of the
Securities and less than all the Securities are to be redeemed, the Trustee
shall select the Securities to be redeemed on a pro rata basis. The Trustee
shall make the selection from Securities outstanding not previously called for
redemption. The Trustee may select for redemption portions of the principal of
Securities that have denominations larger than $1,000 principal amount.
Securities and portions of them it selects shall be in amounts of $1,000
principal amount or positive integral multiples of $1,000 principal amount.
The Trustee shall promptly notify the Company in writing of the Securities
selected for redemption and the principal amount thereof to be redeemed.

          The Registrar need not transfer or exchange any Securities selected for
redemption, except the unredeemed portion of the Securities redeemed in part.
Also, the Registrar need not transfer or exchange any Securities for a period
of 15 days before selecting Securities to be redeemed.

15

 

          If any Security selected for partial redemption is converted in part
before termination of the conversion right with respect to the portion of the
Security so selected, the converted portion of such Security shall be deemed
(so far as may be) to be the portion selected for redemption. Securities which
have been converted during a selection of Securities to be redeemed may be
treated by the Trustee as outstanding for the purpose of such selection.

     3.04 Notice of Redemption.

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

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

		
	 	     (i) the Redemption Date;
	 
	 	     (ii) the Redemption Price, plus the amount of accrued and unpaid
interest (including contingent interest, if any) and liquidated damages,
if any, to be paid on the Securities called for redemption;
	 
	 	     (iii) the then current conversion rate and Conversion Price;
	 
	 	     (iv) the name and address of the Paying Agent and Conversion Agent;
	 
	 	     (v) the date on which the right to convert the principal of the
Securities called for redemption will terminate and the place or places
where such Securities may be surrendered for conversion;
	 
	 	     (vi) that Holders who want to convert Securities must satisfy the
requirements in Article X;
	 
	 	     (vii) the Paragraph of the Securities pursuant to which the
Securities are to be redeemed;
	 
	 	     (viii) that Securities called for redemption must be surrendered to
the Paying Agent to collect the Redemption Price;
	 
	 	     (ix) that unless the Company shall default in the payment of the
Redemption Price, interest (including contingent interest, if any) and
liquidated damages, if any, on Securities called for redemption ceases to
accrue on and after the Redemption Date and that the Securities will
cease to be convertible after the close of business on the business day
immediately preceding the Redemption Date; and
	 
	 	     (x) the CUSIP number or numbers, as the case may be, of the
Securities.

16

 

          The date on which the right to convert the principal of the Securities
called for redemption will terminate shall be at the close of business on the
business day immediately preceding the Redemption Date.

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

     3.05 Effect of Notice of Redemption.

          Once notice of redemption is mailed, Securities called for redemption
become due and payable on the Redemption Date at the Redemption Price, plus
accrued and unpaid interest (including contingent interest, if any) and
liquidated damages, if any, to the date of redemption, and, on and after such
date (unless the Company shall default in the payment of the Redemption Price),
such Securities shall cease to bear interest, contingent interest and
liquidated damages. Upon surrender to the Paying Agent, such Securities shall
be paid at the Redemption Price, plus accrued interest (including contingent
interest, if any) and liquidated damages, if any, to, but excluding, the
Redemption Date, subject to the proviso to Section 3.01.

     3.06 Deposit of Redemption Price.

          On or before the Redemption Date, the Company shall, in accordance with
Section 2.14, deposit with the Paying Agent money in funds immediately
available on the Redemption Date sufficient to pay the Redemption Price of and
accrued interest (including contingent interest, if any) and liquidated
damages, if any, on all Securities to be redeemed on that date. The Paying
Agent shall return to the Company, as soon as practicable, any money not
required for that purpose.

     3.07 Securities Redeemed in Part.

          Upon surrender of a Security that is redeemed in part, the Company shall
execute and the Trustee shall authenticate for the Holder a new Security or
Securities in an aggregate principal amount equal to the unredeemed portion of
the Security surrendered.

          If any Security selected for partial redemption is converted in part, the
converted portion of such Security shall be deemed to be the portion selected
for redemption.

     3.08 Repurchase of Securities at Option of the Holder.

          Each Holder shall have the right (the “Repurchase Right”), at the Holder’s
option, to require the Company to repurchase in Cash in accordance with the
provisions of Paragraph 8 of the Securities all of such Holder’s Securities, or
a portion thereof which is $1,000 in principal amount or any positive integral
multiple thereof, on June 15, 2010, June 15, 2013 and June 15, 2018 (each, a
“Repurchase Date”) at the Repurchase Price plus accrued and unpaid interest
(including contingent interest, if any) and liquidated damages, if any,
thereon, up to but not including the Repurchase Date; provided that if the
Repurchase Date is on or after an interest record date but on or prior to the
related interest payment date, interest (including contingent

17

 

interest, if any) and liquidated damages, if any, will be payable to the
Holders in whose names the Securities are registered at the close of business
on the relevant record date.

          To exercise a Repurchase Right, a Holder shall deliver to the Trustee, or
to a Paying Agent designated by the Company for such purpose in the Company
Notice, at any time from the opening of business on the date that is 30
business days prior to the Repurchase Date until the close of business on the
fifth business day prior to the Repurchase Date, (i) the Option of Holder to
Elect Repurchase Notice on the back of the Securities with respect to which the
Repurchase Right is being exercised, or any other form of written notice
substantially similar to the Option of Holder to Elect Repurchase Notice, in
each case, duly completed and signed, with appropriate signature guarantee, and
(ii) such Securities with respect to which the Repurchase Right is being
exercised, duly endorsed for transfer to the Company, and the Holder of such
Securities shall be entitled to receive from the Trustee, or such Paying Agent
a nontransferable receipt of deposit evidencing such deposit.

          In the event a Repurchase Right shall be exercised in accordance with the
terms hereof, the Company shall, on the later of the Repurchase Date and the
time of the Securities to be repurchased, deposit with the Trustee or with a
Paying Agent (or, if the Company is acting as its own Paying Agent, segregate
and hold in trust in accordance with Section 2.04), in accordance with Section
2.14, an amount of Cash (to be available on the Repurchase Date) sufficient to
pay the Repurchase Price (plus accrued and unpaid interest, including
contingent interest, if any, and liquidated damages, if any) with respect to
all of the Securities which are to be repurchased on that date.

          Notwithstanding anything herein to the contrary, any Holder delivering to
the Paying Agent the Option of Holder to Elect Repurchase Notice contemplated
by this Section 3.08 shall have the right to withdraw such notice at any time
prior to the close of business on the second business day prior to the
Repurchase Date by delivery of a written notice of withdrawal to the Paying
Agent at the principal office of the Paying Agent in accordance with Section
3.11.

          In connection with any repurchase of Securities pursuant to this Section
3.08, the Company shall give written notice of the Repurchase Date to the
Holders (the “Company Notice”). The Company Notice shall be sent by
first-class mail to the Trustee and to each Holder not less than 30 business
days prior to any Repurchase Date (the “Company Notice Date”). The Company
will also disseminate the Company Notice via a press release through Dow Jones
& Company, Inc. or Bloomberg Business News or other similarly broad public
medium that is customary for such press releases. Each Company Notice shall
include an Option of Holder to Elect Repurchase Notice to be completed by a
Securityholder that wishes to exercise its Repurchase Right and shall state,
among other things:

		
	 	     (i) the Repurchase Price, plus the amount of accrued and unpaid
interest (including contingent interest, if any) and liquidated damages,
if any, payable on the Repurchase Date;
	 
	 	     (ii) the name and address of the Paying Agent and the Conversion
Agent;

18

 

		
	 	     (iii) a description of the procedures which a Holder must follow to
exercise a Repurchase Right and a brief description of those rights;
	 
	 	     (iv) that, in order to exercise the Repurchase Right, the Securities
are to be surrendered for payment of the Repurchase Price;
	 
	 	     (v) that Securities as to which a repurchase notice has been given
may be converted if they are otherwise convertible only in accordance
with Article X hereof and Paragraph 10 of the Securities if the
applicable Option of Holder to Elect Repurchase Notice has been withdrawn
in accordance with the terms of this Indenture;
	 
	 	     (vi) that the Repurchase Price for, and any accrued and unpaid
interest (including contingent interest, if any) and liquidated damages,
if any, on, any Security as to which an Option of Holder to Elect
Repurchase Notice has been given and not withdrawn will be paid promptly
following the later of the Repurchase Date and the time of surrender of
such Security as described in subclause (iv) above;
	 
	 	     (vii) the procedures for withdrawing an Option of Holder to Elect
Repurchase Notice (as specified in Section 3.11);
	 
	 	     (viii) the then existing conversion rate;
	 
	 	     (ix) the place or places where such Securities may be surrendered
for conversion;
	 
	 	     (x) that, unless the Company defaults in making payment on
Securities for which a repurchase notice has been submitted, interest
(including contingent interest, if any), and liquidated damages, if any,
on such Securities will cease to accrue on the Repurchase Date;
	 
	 	     (xi) that all rights of the Holders of such Securities shall
terminate with respect to such Securities on the Repurchase Date, other
than the right to receive the Repurchase Price upon delivery of the
Securities to be purchased; and
	 
	 	     (xii) the CUSIP number of the Securities.

          At the Company’s request, the Trustee shall give such Company 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 prior to the date by
which such Company Notice must be given to the Holders and that, in all cases,
the text of such Company Notice shall be prepared by the Company.

     3.09 Repurchase Upon a Change in Control.

          Upon any Change in Control (as defined below) with respect to the Company,
each Holder shall have the right (the “Change in Control Repurchase Right”), at
the Holder’s option, subject to the rights of the holders of Senior
Indebtedness under Article XI of this Indenture, to require the Company to
repurchase all of such Holder’s Securities, or a portion

19

 

thereof which is $1,000 in principal amount or any positive integral
multiple thereof, on the date (the “Change in Control Repurchase Date”) that is
30 business days after the date of the Change in Control Notice (as defined
below) at the Repurchase Price, plus accrued and unpaid interest (including
contingent interest, if any) and liquidated damages, if any, to, but not
including, the Change in Control Repurchase Date. Provisions of this Indenture
that apply to the repurchase of Securities pursuant to this Section 3.09 of all
of a Security also apply to the repurchase of such portion of such Security.

     At the option of the Company, all or a specified percentage of the
Repurchase Price of Securities in respect of which a Change in Control Notice
pursuant to this Section 3.09 has been given may be paid by the Company by the
issuance of a number of shares of Common Stock or, in the case of a merger in
which the Company is not the surviving corporation, common stock, ordinary
shares, American Depositary Shares or analogous securities of the surviving
corporation or its direct or indirect parent, equal to the quotient obtained by
dividing (i) the amount of Cash to which the Holders would have been entitled
had the Company elected to pay all or a specified percentage of the Repurchase
Price of such Securities in Cash by (ii) the product of (A) the Market Price of
the Common Stock, subject to the next succeeding paragraph, and (B) 0.95.

     The Company will not issue fractional shares of Common Stock in payment of
the Repurchase Price in connection with the exercise of any Change in Control
Repurchase Right. Instead the Company will pay Cash based on the Market Price
for all fractional shares. The Market Price of a fractional share shall be
determined to the nearest 1/1,000th of a share, by multiplying the applicable
Market Price of a full share by the fractional amount and rounding to the
nearest whole cent. It is understood that if a Holder elects to have more than
one Security repurchased, the number of shares of Common Stock shall be based
on the aggregate principal amount of Securities to be repurchased.

     In the event that the Company is unable to purchase the Securities of a
Holder or Holders for Common Stock because any necessary qualifications or
registrations of the Common Stock under applicable state securities laws cannot
be obtained, the Company may purchase the Securities of such Holder or Holders
for Cash. The Company may not change its election with respect to the
consideration to be paid once the Company has given its Change in Control
Notice to Securityholders except pursuant to the immediately preceding sentence
in the event of a failure to satisfy, prior to the close of business on the
Change in Control Repurchase Date, any condition to the payment of the
Repurchase Price in shares of Common Stock.

     At least three business days before the date of the Change in Control
Notice (as defined below), the Company shall deliver an Officers’ Certificate
to the Trustee specifying:

		
	 	     (i) the manner of payment selected by the Company;
	 
	 	     (ii) the information required to be included in the Change in
Control Notice;
	 
	 	     (iii) if the Company elects to pay all or a specified percentage of
the Repurchase Price in shares of Common Stock, that the conditions to
such manner of payment set forth in this Section 3.09 have been or will
be complied with; and

20

 

		
	 	     (iv) whether the Company desires the Trustee to give the Change in
Control Notice required by this Section 3.09.
	 
	 	     The Company’s right to exercise its election to purchase Securities
through the issuance of Common Stock shall be conditioned upon:
	 
	 	     (i) the Company’s giving of timely Change in Control Notice to
purchase Securities with Common Stock as provided herein;
	 
	 	     (ii) the registration of such Common Stock under the Securities Act
or the Exchange Act, in each case, if required;
	 
	 	     (iii) such Common Stock having been quoted or listed on the NASDAQ
National Market or other principal U.S. exchange or quotation system on
which the shares of Common Stock are then listed, or if the Common Stock
is not so quoted or listed then on the principal other market on which
the Common Stock are then traded;
	 
	 	     (iv) any necessary qualification or registration under applicable
state securities laws or the availability of an exemption from such
qualification and registration; and
	 
	 	     (v) the receipt by the Trustee of an Officers’ Certificate and an
Opinion of Counsel each stating that (A) the terms of the issuance of the
Common Stock are in conformity with this Indenture and (B) the shares of
Common Stock to be issued by the Company in payment of all or a specified
percentage of the Repurchase Price in respect of Securities have been
duly authorized and, when issued and delivered pursuant to the terms of
this Indenture in payment of all or a specified percentage of the
Repurchase Price in respect of the Securities, will be validly issued,
fully paid and nonassessable and, to the best of such counsel’s
knowledge, free from preemptive rights, and, (a) in the case of such
Officers’ Certificate, stating that the conditions above and the
condition set forth in the second succeeding sentence have been satisfied
and, (b) in the case of such Opinion of Counsel, stating that the
conditions above have been satisfied.

          Such Officers’ Certificate shall also set forth (i) the number of shares
of Common Stock of to be issued for each $1,000 principal amount at maturity of
Securities, (ii) the Sale Price on each Trading Day during the period during
which the Market Price is calculated and (iii) the Market Price of the Common
Stock. The Company may pay the Repurchase Price in Common Stock only if the
information necessary to calculate the Market Price is published in a daily
newspaper of national circulation or is otherwise publicly available or
obtainable (e.g., by dissemination on the World Wide Web or by other public
means). If the foregoing conditions are not satisfied with respect to a Holder
or Holders prior to the close of business on the Change in Control Repurchase
Date and the Company has elected to purchase the Securities pursuant to this
Section 3.09 through the issuance of Common Stock, the Company shall pay the
entire Repurchase Price of the Securities of such Holder or Holders in Cash.

          All shares of Common Stock delivered upon purchase of the Securities shall
be newly issued shares or treasury shares, shall be duly authorized, validly
issued, fully paid and nonassessable, and shall be free from preemptive rights
and free of any lien or adverse claim.

21

 

          Within 30 days after the occurrence of a Change in Control of the Company,
the Company shall mail to all Holders of record of the Securities a notice (the
“Change in Control Notice”) of the occurrence of such Change in Control and the
Change in Control Repurchase Right arising as a result thereof. The Company
shall deliver a copy of the Change in Control Notice to the Trustee and shall
disseminate a copy via a press release through Dow Jones & Company, Inc. or
Bloomberg Business News or other similarly broad public medium that is
customary for such press releases. To exercise the Change in Control
Repurchase Right, a Holder of Securities must deliver on or before the close of
business on the 30th day after the date of the Change in Control Notice
irrevocable written notice to the Trustee, or to a Paying Agent designated by
the Company for such purpose in the Change in Control Notice, in the form of
the Option of Holder to Elect Repurchase Notice on the back of the Security, of
the Holder’s exercise of such right together with the Securities with respect
to which the right is being exercised, duly endorsed for transfer.

		
	 	     Each Change in Control Notice shall state:
	 
	 	     (i) the events causing the Change in Control;
	 
	 	     (ii) the date of such Change in Control;
	 
	 	     (iii) the Change in Control Repurchase Date;
	 
	 	     (iv) the date by which the Change in Control Repurchase Right must
be exercised;
	 
	 	     (v) the Repurchase Price, plus the amount of accrued and unpaid
interest (including contingent interest, if any) and liquidated damages,
if any, to be paid on the Securities to be repurchased;
	 
	 	     (vi) the name and address of the Paying Agent and the Conversion
Agent;
	 
	 	     (vii) a description of the procedure which a Holder must follow to
exercise a Change in Control Repurchase Right and a brief description of
those rights;
	 
	 	     (viii) that, in order to exercise the Change in Control Repurchase
Right, the Securities are to be surrendered for payment of the Repurchase
Price;
	 
	 	     (ix) that Securities as to which a Change in Control Notice has been
given may be converted if they are otherwise convertible only in
accordance with Article X hereof and Paragraph 10 of the Securities if
the applicable Option of Holder to Elect Repurchase Notice has been
withdrawn in accordance with the terms of this Indenture;
	 
	 	     (x) that the Repurchase Price for, any accrued and unpaid interest
(including contingent interest, if any) and liquidated damages, if any,
on any Security as to which an Option of Holder to Elect Repurchase
Notice has been given and not withdrawn, shall be so paid pursuant to
this Section 3.09 only if the Security so delivered to the Paying Agent
shall conform in all respects to the description thereof in the related
Change in Control Notice, as determined by the Company in its sole
discretion;

22

 

		
	 	     (xi) the procedures for withdrawing an Option of Holder to Elect
Repurchase Notice (as specified in Section 3.11);
	 
	 	     (xii) the then existing conversion rate, and any adjustment to the
conversion rate that will result from the Change in Control;
	 
	 	     (xiii) the place or places where such Securities may be surrendered
for conversion;
	 
	 	     (xiv) that, unless the Company defaults in making payment on
Securities for which a Change in Control repurchase notice has been
submitted, interest (including contingent interest, if any), and
liquidated damages, if any, on such Securities will cease to accrue on
the Change in Control Repurchase Date;
	 
	 	     (xv) that all rights of the Holders of such Securities shall
terminate with respect to such Securities on the Change in Control
Repurchase Date, other than the right to receive the Repurchase Price
upon delivery of the Securities to be purchased;
	 
	 	     (xvi) the CUSIP number of the Securities; and
	 
	 	     (xvii) whether the Repurchase Price will be paid in Cash, Common
Stock or a combination of both and, if both, the percentage thereof;
provided, however, if the Company elects to pay all or a portion of the
Repurchase Price in Common Stock, such Change in Control Notice shall
also:

	 	(X)	 	state that each Holder will receive shares of
Common Stock with a Market Price determined as of a specified
date prior to the Change in Control Repurchase Date equal to
such specified percentage of the Repurchase Price of the
Securities held by such Holder (except any Cash amount to be
paid in lieu of fractional shares);
	 
	 	(Y)	 	describe the method of calculating the Market
Price of the Common Stock; and
	 
	 	(Z)	 	state that because the Market Price of Common
Stock will be determined prior to the Change in Control
Repurchase Date, Holders of the Securities will bear the
market risk with respect to the value of the Common Stock to
be received from the date such Market Price is determined to
the Change in Control Repurchase Date.

          The “Market Price” means the average of the Sale Prices for the five
consecutive Trading Days ending on the third business day prior to the
applicable Change in Control Repurchase Date (if the third business day prior
to the applicable Change in Control Repurchase Date is a Trading Day, or if
not, then on the last Trading Day prior to the third business day),
appropriately adjusted to take into account the occurrence, during the period
commencing on the first of the Trading Days during the five Trading Day period
and ending on the Change in Control Purchase Date, of any event described in
Section 10.6.

23

 

          No failure of the Company to give the foregoing notice shall limit any
Holder’s right to exercise a Change in Control Repurchase Right.

          To exercise a Change in Control Repurchase Right, a Holder shall deliver
to the Trustee, or to a Paying Agent designated by the Company for such purpose
in the Change in Control Notice, on or before the close of business
on the 30th
day after the date of the Change in Control Notice, (i) irrevocable written
notice in the form of the Option of Holder to Elect Repurchase Notice on the
back of the Securities with respect to which the Change in Control Repurchase
Right is being exercised, or any other form of written notice substantially
similar to the Option of Holder to Elect Repurchase Notice, in each case, duly
completed and signed, with appropriate signature guarantee, and (ii) such
Securities with respect to which the Change in Control Repurchase Right is
being exercised, duly endorsed for transfer to the Company, and the Holder of
such Securities shall be entitled to receive from the Company (if it is acting
as its own Paying Agent), or such Paying Agent a nontransferable receipt of
deposit evidencing such deposit.

          In the event a Change in Control Repurchase Right shall be exercised in
accordance with the terms hereof, the Company shall, on or prior to a Change in
Control Repurchase Date, deposit Cash in respect of the Cash portion of a
repurchase under this Section 3.09 or for fractional shares of Common Stock, as
applicable, plus Cash sufficient to pay accrued an unpaid interest, including
contingent interest, if any, and liquidated damages, if any, with respect to
all Securities to be purchased pursuant to this Section 3.09. On the Trading
Day following the Change in Control Repurchase Date, the Company shall deliver
to each Holder entitled to receive Common Stock the number of full shares of
Common Stock issuable in payment of the Repurchase Price. The person in whose
name the certificate for shares of Common Stock is registered shall be treated
as a holder of record of Common Stock on the business day following the Change
in Control Repurchase Date. No payment or adjustment will be made for
dividends on the shares of Common Stock on the record date for which occurred
on or prior to the Change in Control Repurchase Date.

          If a Holder of a repurchased Security is paid in Common Stock pursuant to
this Section 3.09, the Company shall pay all, stamp and 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. However, the Holder shall pay any such tax which is due
because the Holder requests the shares of Common Stock to be issued in a name
other than the Holder’s name. The Trustee or any Paying Agent may refuse to
deliver the certificates representing the Common Stock issued in a name other
than the Holder’s name until the Trustee or any such Paying Agent receives a
sum sufficient to pay any tax which shall be due because the shares are to be
issued in a name other than the Holder’s name. Nothing herein shall preclude
any withholding tax required by law.

          As used in this Section 3.09 of the Indenture and in the Securities:

          A “Change in Control” of the Company shall be deemed to have occurred at
such time as:

24

 

		
	 	     (i) any person acquires beneficial ownership, directly or
indirectly, through a purchase, merger or other acquisition transaction
or series of transactions, of shares of the Company’s capital stock
entitling the person to exercise 50% or more of the total voting power of
all shares of the Company’s capital stock that are entitled to vote
generally in elections of directors, other than an acquisition by the
Company, any of its subsidiaries or any of its employee benefit plans; or
	 
	 	     (ii) the conveyance, sale, transfer or lease by the Company of all
or substantially all of its assets to another person.

          However, a Change in Control will not be deemed to have occurred if:

	 	(X)	 	the Sale Price for any five Trading Days within
the period of ten consecutive Trading Days ending immediately
after the later of the Change in Control or the public
announcement of the Change in Control, in the case of a Change
in Control relating to an acquisition of capital stock, or the
period of ten consecutive Trading Days ending immediately
before the Change in Control, in the case of a Change in
Control relating to a merger, consolidation or asset sale,
equals or exceeds 105% of the Conversion Price of the
Securities in effect on each of those five Trading Days; or
	 
	 	(Y)	 	all or substantially all (but in no event less
than 90%) of the consideration, excluding Cash payments for
fractional shares of Common Stock and Cash payments made
pursuant to dissenters’ appraisal rights, in a merger or
consolidation otherwise constituting a Change in Control in
the preceding paragraph consists of shares of common stock,
depositary receipts or other certificates representing common
equity interests traded on a national securities exchange or
quoted on the NASDAQ National Market, or will be so traded or
quoted immediately following such merger or consolidation, and
as a result of such merger or consolidation the Securities
become convertible solely into such common stock, depositary
receipts or other certificates representing common equity
interests.

          For purposes of this “Change in Control” definition:

		
	 	     (1) whether a person is a “beneficial owner” will be determined in
accordance with Rule 13d-3 under the Exchange Act; and
	 
	 	     (2) a “person” includes any syndicate or group that would be deemed
to be a person under Section 13(d)(3) of the Exchange Act.

     3.10 Conversion Arrangement on Call for Redemption.

          In connection with any redemption of Securities, the Company may arrange,
in lieu of redemption, for the purchase and conversion of any Securities called
for redemption by an agreement with one or more investment bankers or other
purchasers to purchase all or a portion of such Securities by paying to the
Trustee in trust for the Holders whose Securities are to be so

25

 

purchased, on or before the close of business on the Redemption Date, an
amount that, together with any amounts deposited with the Trustee by the
Company for redemption of such Securities, is not less than the Redemption
Price, together with interest (including contingent interest, if any) and
liquidated damages, if any, accrued to the Redemption Date, of such Securities.
Notwithstanding anything to the contrary contained in this Article III, the
obligation of the Company to pay the Redemption Price of such Securities and
such interest (including contingent interest, if any) and liquidated damages,
if any, shall be deemed to be satisfied and discharged to the extent such
amount is so paid by such purchasers, but no such agreement shall relieve the
Company of its obligation to pay such Redemption Price and such interest
(including contingent interest, if any) and liquidated damages, if any. If
such an agreement is entered into, any Securities not duly surrendered for
conversion by the Holders thereof may, at the option of the Company, be deemed,
to the fullest extent permitted by law, acquired by such purchasers from such
Holders and (notwithstanding anything to the contrary contained in Article X)
surrendered by such purchasers for conversion, all as of immediately prior to
the close of business on the Redemption Date, subject to payment of the above
amount as aforesaid. The Trustee shall hold and pay to the Holders whose
Securities are selected for redemption any such amount paid to it for purchase
and conversion in the same manner as it would moneys deposited with it by the
Company for the redemption of Securities. Without the Trustee’s prior written
consent, no arrangement between the Company and such purchasers for the
purchase and conversion of any Securities shall increase or otherwise affect
any of the powers, duties, rights, immunities, responsibilities or obligations
of the Trustee as set forth in this Indenture, and the Company agrees to
indemnify the Trustee from, and hold it harmless against, any and all loss,
liability or expense arising out of or in connection with any such arrangement
for the purchase and conversion of any Securities between the Company and such
purchasers, including the costs and expenses (including counsel fees and
expenses) incurred by the Trustee in the defense of any claim or liability
arising out of or in connection with the exercise or performance of any of its
powers, duties, responsibilities or obligations under this Indenture except to
the extent arising from its bad faith, willful misconduct or negligence.

     3.11 Effect of Repurchase Notice or Change in Control Repurchase Notice.

          Upon receipt by the Paying Agent of a Holder’s Option of Holder to Elect
Repurchase Notice in accordance with Section 3.08 or Section 3.09, as
applicable, the Holder of the Security in respect of which such notice, as the
case may be, was given shall (unless such notice is withdrawn as specified in
the following two paragraphs) thereafter be entitled to receive solely the
Repurchase Price, together with all accrued and unpaid interest (including
contingent interest, if any) and liquidated damages, if any, thereon, to but
not including the Repurchase Date or Change in Control Repurchase Date, as the
case may be, with respect to such Security. Securities in respect of which a
repurchase notice has been given by the Holder thereof may not be converted
pursuant to Article X hereof on or after the date of the delivery of such
notice unless such notice has first been validly withdrawn as specified in the
following paragraph.

          With respect any Physical Security which is to be submitted for repurchase
only in part pursuant to Section 3.08 or Section 3.09, as applicable (with, if
the Company or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Trustee duly
executed by the Holder thereof or its attorney duly authorized in writing), the
Company shall execute, and the Trustee shall authenticate and make

26

 

available for delivery to the Holder of such Security without service
charge, a new Security or Securities, of any authorized denomination as
requested by such Holder, of the same tenor and in aggregate principal amount
equal to the portion of such Security not submitted for repurchase thereunder.

          A Holder’s Option of Holder to Elect Repurchase Notice specified in
Section 3.08 or Section 3.09, as applicable, may be withdrawn by means of a
written notice of withdrawal delivered to the office of the Paying Agent at any
time prior to the close of business on the second business day prior to the
Repurchase Date or prior to close of business on second the business day prior
to the Change in Control Repurchase Date, as the case may be, specifying:

		
	 	     (i) the certificate or CUSIP number, as applicable, of the Security
in respect of which such notice of withdrawal is being submitted;
	 
	 	     (ii) the aggregate principal amount of the Security with respect to
which such notice of withdrawal is being submitted; and
	 
	 	     (iii) the aggregate principal amount, if any, of such Security which
remains subject to the original Option of Holder to Elect Repurchase
Notice and which has been or will be delivered for purchase by the
Company.

          The Paying Agent shall promptly notify the Company of the receipt of any
repurchase notice specified in Section 3.08 or Section 3.09, as applicable, or
written notice of withdrawal thereof.

     3.12 Covenant to Comply With Securities Laws Upon Purchase of Securities.

          When complying with the provisions of Section 3.08 or 3.09 hereof
(provided that such offer or purchase constitutes an “issuer tender offer” for
purposes of Rule 13e-4 (which term, as used herein, includes any successor
provision thereto) under the Exchange Act at the time of such offer or
purchase), the Company shall (i) comply with the applicable provisions of Rule
13e-4 and Rule 14e-1 (or any successor provisions) under the Exchange Act, and
any other tender offer rules under the Exchange Act that may then apply, (ii)
file the related Schedule TO (or any successor schedule, form or report) under
the Exchange Act, and (iii) otherwise comply with any applicable federal and
state securities laws so as to permit the rights and obligations under Sections
3.08 and 3.09 to be exercised in the time and in the manner specified in
Sections 3.08 and 3.09.

ARTICLE IV

COVENANTS

     4.01 Payment of Securities.

          The Company shall pay all amounts due with respect to the Securities on
the dates and in the manner provided in the Securities. All such amounts shall
be considered paid on the date due if the Paying Agent holds (or, if the
Company is acting as Paying Agent, if the

27

 

Company has segregated and holds in trust in accordance with Section 2.04)
on that date money sufficient to pay the amount then due with respect to the
Securities.

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

     4.02 Maintenance of Office or Agency.

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

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

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

     4.03 Reports.

		
	 	     (A) The Company will promptly provide to the Trustee and shall, upon
request, provide to any Holder or beneficial owner of Securities or
prospective purchaser of Securities that so requests, the information
required to be delivered pursuant to Rule 144A(d)(4) until such time as
the Securities and the underlying Common Stock have been registered by
the Company for resale under the Securities Act pursuant to the
Registration Rights Agreement. In addition, the Company will furnish
such Rule 144A(d)(4) information if, at any time while the Securities or
the Common Stock issuable upon conversion of the Securities are
restricted securities within the meaning of the Securities Act, the
Company is not subject to the informational requirements of the Exchange
Act.
	 
	 	     (B) The Company will comply with the provisions of TIA § 314(a).
	 
	 	     (C) Delivery of such reports, information and documents to the
Trustee is for informational purposes only and the Trustee’s receipt of
such shall not constitute constructive notice of any information
contained therein or determinable from information contained therein,
including the Company’s compliance with any of its

28

 

		
	 	covenants hereunder (as to which the Trustee is entitled to rely
exclusively on the Officers’ Certificate).

     4.04 Compliance Certificate.

          The Company shall deliver to the Trustee within 90 days after the end of
each fiscal year of the Company an Officers’ Certificate stating whether or not
the signers know of any Default or Event of Default by the Company in
performing any of its obligations under this Indenture or the Securities. If
they do know of any such Default or Event of Default, the certificate shall
describe the Default or Event of Default and its status.

     4.05 Stay, Extension and Usury Laws.

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

     4.06 Corporate Existence.

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

     4.07 Notice of Default.

          In the event that any Default or Event of Default shall occur, the Company
will give prompt written notice of such Default or Event of Default to the
Trustee.

     4.08 Tax Treatment of Securities.

          The Company and the Holders, by purchasing a beneficial ownership interest
in the Securities, agree that (i) the Securities are contingent payment debt
instruments as described in Section 1.1275-4 of the Treasury regulations
promulgated by the Department of Treasury pursuant to the Internal Revenue Code
of 1986, amended (the “Contingent Payment Regulations”), (ii) each Holder shall
be bound by the Company’s application of the Contingent Payment Regulations to
the Securities, including the Company’s determination that the
rate at

29

 

which interest will be deemed to accrue on the Securities for U.S. federal
income tax purposes, will be 8.0% compounded semiannually, which is the rate
comparable to the rate at which the Company would borrow on a noncontingent,
nonconvertible borrowing with no contingent payments, but with terms and
conditions otherwise comparable to the Securities (the “comparable yield”),
(iii) each Holder shall use the projected payment schedule with respect to the
Securities provided by the Company to the Holder, as provided in the Contingent
Payment Regulations, to determine its interest accruals and adjustments as
provided in the Contingent Payment Regulations (iv) for purposes of the
Contingent Payment Regulations, to treat the fair market value of any Common
Stock received upon any conversion of the Securities as a contingent payment,
and (v) the Company and each Holder will not take any position on a tax return
inconsistent with clauses (i), (ii), or (iii) of this Section 4.08, unless
required by applicable law.

          The comparable yield and the schedule of projected payments are not
determined for any purpose other than for the determination of interest
accruals and adjustment thereof in respect of the Securities for U.S. federal
income tax purposes. The comparable yield and the schedule of projected
payments do not constitute a projection or representation regarding the future
stock price or the amount payable on the Securities. A Holder may obtain the
issue date, comparable yield and projected payment schedule (which schedule is
attached as Exhibit E) by telephoning the Company’s Investor Relations
Department at (201) 414-20002 or submitting a written request to: WebMD
Corporation, 669 River Drive, Center 2, Elmwood Park, New Jersey 07407, Attn:
Investor Relations.

          On conversion of the Securities, that portion of accrued interest
including accrued contingent interest with respect to the converted Securities
shall not be canceled, extinguished or forfeited, but rather shall be deemed to
be paid in full to the Holder thereof through delivery of the Common Stock
(together with the cash payment, if any, in lieu of fractional shares) in
exchange for the Securities being converted pursuant to the provisions hereof,
and the fair market value of such shares of Common Stock (together with any
such cash payment in lieu of fractional shares) shall be treated as issued, to
the extent thereof, first in exchange for interest accrued and unpaid through
the conversion date and accrued and unpaid contingent interest, and the
balance, if any, of such fair market value of such Common Stock (and any such
cash payment) shall be treated as issued in exchange for the principal amount
of the Securities being converted pursuant to the provisions hereof.

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ARTICLE V

SUCCESSORS

     5.01 When Company May Merge, etc.

          The Company shall not consolidate with or merge with or into, or convey,
transfer or lease all or substantially all of its properties and assets to,
another person unless such other person is a corporation organized under the
laws of the United States, any State thereof or the District of Columbia or a
corporation or comparable legal entity organized under the laws of a foreign
jurisdiction and whose equity securities are listed on a national securities
exchange in the United States or authorized for quotation on the NASDAQ
National Market prior to or upon giving effect to the transaction (provided,
however, that in the case of a transaction where the surviving entity is
organized under the laws of a foreign jurisdiction, the Company may not
consummate the transaction without first (i) making provision for the
satisfaction of its obligations to repurchase the Securities following a change
in control, if any, (ii) amending the terms of the Securities to provide that,
in the event the Company is required under the laws of such foreign
jurisdiction (or any political subdivision thereof) to withhold or deduct
amounts in respect of taxes from payments made to Securityholders on the
Securities, the Company will pay, subject to certain standard exceptions, such
additional amounts to the holders as may be necessary so that each
Securityholder will receive the same amounts it would have received had no such
withholding or deduction been required, and (iii) obtaining an opinion of tax
counsel experienced in such matters to the effect that, under then existing
United States federal income tax laws, there would be no material adverse tax
consequences to Securityholders of the Securities resulting from such
transaction); such person assumes by supplemental indenture all the obligations
of the Company, under the Securities and this Indenture; and immediately after
giving effect to the transaction, no Default or Event of Default shall exist
under the terms of this Indenture.

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

     5.02 Successor Substituted.

          Upon any consolidation or merger or transfer or lease of all or
substantially all of the assets of the Company in accordance with Section 5.01,
the successor person formed by such consolidation or into which the Company is
merged or to which such transfer or lease is made shall succeed to, and, except
in the case of a lease, be substituted for, and may exercise every right and
power of, and shall assume every duty and obligation of, the Company under this
Indenture with the same effect as if such successor had been named as the
Company herein. When the successor assumes all obligations of the Company
hereunder, except in the case of a lease, all obligations of the predecessor
shall terminate.

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ARTICLE VI

DEFAULTS AND REMEDIES

     6.01 Events of Default.

          An “Event of Default” occurs if:

		
	 	     (i) the Company defaults in the payment of the principal amount,
Redemption Price (including the Make Whole Payment portion of the
Redemption Price, if any) or Repurchase Price with respect to any
Security when the same becomes due and payable, whether on the Maturity
Date, Redemption Date, the Repurchase Date, Change in Control Repurchase
Date or otherwise, whether or not such payment shall be prohibited by the
provisions of Article XI hereof;
	 
	 	     (ii) the Company defaults in the payment of accrued and unpaid
interest (including contingent interest, if any) or liquidated damages,
if any, on any Security when the same becomes due and payable and such
default continues for a period of 30 days, whether or not such payment
shall be prohibited by the provisions of Article XI hereof;
	 
	 	     (iii) the Company fails to comply with any of its other agreements
in the Securities or this Indenture and the default continues for the
period and after the notice specified below;
	 
	 	     (iv) the Company fails to provide a Change in Control Notice in
accordance with Section 3.09;
	 
	 	     (v) the Company or any of its Significant Subsidiaries defaults in
the payment at the final maturity thereof, after the expiration of any
applicable grace period, of principal of, or premium, if any, on
indebtedness for money borrowed, other than Non-Recourse Indebtedness, in
the aggregate principal amount then outstanding of $30,000,000 or more,
or the acceleration of indebtedness for money borrowed in such aggregate
principal amount so that it becomes due and payable prior to the date on
which it would otherwise become due and payable and such acceleration is
not rescinded or such default is not cured within 30 business days after
notice to the Company in accordance with this Indenture;
	 
	 	     (vi) the Company or any of its Significant Subsidiaries pursuant to
or within the meaning of any Bankruptcy Law:
	 
	 	     (A) commences a voluntary case,
	 
	 	     (B) consents to the entry of an order for relief against it in an
involuntary case,
	 
	 	     (C) consents to the appointment of a Custodian of it or for all or
substantially all of its property, or

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

32

 

		
	 	     (vii) a court of competent jurisdiction enters an order or decree
under any Bankruptcy Law that:
	 
	 	     (A) is for relief against the Company or any of its Significant
Subsidiaries in an involuntary case or proceeding, or adjudicates the
Company or any Significant Subsidiary insolvent or bankrupt,
	 
	 	     (B) appoints a Custodian of the Company or any of its Significant
Subsidiaries for all or substantially all of the property of the Company
or any such Significant Subsidiary, as the case may be, or
	 
	 	     (C) orders the winding up or liquidation of the Company or any of
its Significant Subsidiaries,

and the order or decree remains unstayed and in effect for 90 consecutive days.

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

          A default under Section 6.01(iii) above is not an Event of Default until
the Trustee or the Holders of at least 25% in aggregate principal amount of the
Securities then outstanding notify the Company and the Trustee of the default
and the default is not cured within 60 days after receipt of the notice. The
notice must specify the default, demand that it be remedied and state that the
notice is a “Notice of Default.” If the Holders of 25% in aggregate principal
amount of the outstanding Securities request the Trustee to give such notice on
their behalf, the Trustee shall do so. When a default is cured, it ceases.

     6.02 Acceleration.

          If an Event of Default (other than an Event of Default specified in
Section 6.01(vi) or (vii) with respect to the Company) as to which the Trustee
has received notice pursuant to the provisions of this Indenture occurs and is
continuing, the Trustee by notice to the Company or the Holders of at least 25%
in aggregate principal amount of the Securities then outstanding by notice to
the Company and the Trustee may declare the Securities to be due and payable.
Upon such declaration such principal and interest shall be due and payable
immediately. If an Event of Default specified in Section 6.01(vi) or (vii)
with respect to the Company occurs, the principal of and accrued interest on
all the Securities shall ipso facto become and be immediately due and payable
without any declaration or other act on the part of the Trustee or any
Securityholder. The Holders of a majority in aggregate principal amount of the
Securities then outstanding by written notice to the Trustee may rescind an
acceleration and its consequences if the rescission would not conflict with any
order or decree and if all existing Events of Default have been cured or waived
except nonpayment of principal or interest that has become due solely because
of the acceleration and if all amounts due to the Trustee under Section 7.07
have been paid.

33

 

     6.03 Other Remedies.

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

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

     6.04 Waiver of Past Defaults.

          Subject to Sections 6.07 and 9.02, the Holders of a majority in aggregate
principal amount of the Securities then outstanding by notice to the Trustee
may waive any past Default or Event of Default and its consequences, except a
default in the payment of the principal amount, accrued and unpaid interest
(including contingent interest), if any, and liquidated damages, if any, any
Redemption Price, any Repurchase Price or obligation to deliver Conversion
Shares. When a Default or an Event of Default is waived, it is cured and
ceases for every purpose of this Indenture.

     6.05 Control by Majority.

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

     6.06 Limitation on Suits.

          Except as provided in Section 6.07, a Securityholder may pursue a remedy
with respect to this Indenture or the Securities only if:

		
	 	     (i) the Holder gives to the Trustee written notice of a continuing
Event of Default;
	 
	 	     (ii) the Holders of at least 25% in aggregate principal amount of
the Securities then outstanding make a written request to the Trustee to
pursue the remedy;
	 
	 	     (iii) such Holder or Holders offer and, if requested, provide to the
Trustee indemnity reasonably satisfactory to the Trustee against any
loss, liability or expense;

34

 

		
	 	     (iv) the Trustee does not comply with the request within 60 days
after receipt of the request and the offer of indemnity; and
	 
	 	     (v) during such 60-day period, the Holders of a majority in
aggregate principal amount of the Securities then outstanding do not give
the Trustee a direction inconsistent with the request.

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

     6.07 Rights of Holders to Receive Payment.

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

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

     6.08 Collection Suit by Trustee.

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

     6.09 Trustee May File Proofs of Claim.

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

          The Trustee may collect and receive any moneys or other property payable
or deliverable on any such claims and to distribute the same, and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or similar
official in any judicial proceeding is hereby authorized by each Holder to make
such payments to the Trustee and, in the event that the Trustee shall consent
to the making of such payments directly to the Holders, to pay the Trustee any
amount due it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 7.07.

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

35

 

     6.10 Priorities.

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

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

          Second: to holders of Senior Indebtedness to the extent required by Article XI;

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

          Fourth: to the Company.

          The Trustee, upon prior written notice to the Company may fix a record
date and payment date for any payment by it to Securityholders pursuant to this
Section 6.10.

     6.11 Undertaking for Costs.

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

36

 

ARTICLE VII

TRUSTEE

     7.01 Duties of Trustee.

		
	 	     (A) If an Event of Default has occurred and is continuing, the
Trustee shall exercise such of the rights and powers vested in it by this
Indenture, and use the same degree of care and skill in their exercise,
as a prudent person would exercise or use under the circumstances in the
conduct of his or her own affairs.
	 
	 	     (B) Except during the continuance of an Event of Default:
	 
	 	     (i) the Trustee need perform only those duties that are specifically
set forth in this Indenture and no implied covenants or obligations shall
be read into this Indenture against the Trustee; and
	 
	 	     (ii) in the absence of bad faith, willful misconduct or negligence
on its part, the Trustee may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture; but in the case of any such certificates
or opinions which by any provision hereof are specifically required to be
furnished to the Trustee, the Trustee shall examine the certificates and
opinions to determine whether or not they conform to the requirements of
this Indenture (but need not confirm or investigate the accuracy of
mathematical calculations or other facts stated therein).
	 
	 	     (C) The Trustee may not be relieved from liability for its own
negligent action, its own negligent failure to act or its own willful
misconduct, except that:
	 
	 	     (i) the Trustee shall not be liable for any error of judgment made in
good faith by a Responsible Officer, unless it is proved that the Trustee
was negligent in ascertaining the pertinent facts; and
	 
	 	     (ii) the Trustee shall not be liable with respect to any action it
takes or omits to take in good faith in accordance with a direction
received by it pursuant to Section 6.05.
	 
	 	     (D) Every provision of this Indenture that in any way relates to the
Trustee is subject to the provisions of this Section 7.01.
	 
	 	     (E) The Trustee shall not be liable for interest on any money
received by it except as the Trustee may agree in writing with the
Company. Money held in trust by the Trustee need not be segregated from
other funds except to the extent required by law.

     7.02 Rights of Trustee.

		
	 	     (A) Subject to Section 7.01, the Trustee may conclusively rely on
any document believed by it to be genuine and to have been signed or
presented by the proper person. The Trustee need not investigate any
fact or matter stated in the document; if,

37

 

		
	 	however, the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled during normal business hours to
examine the relevant books, records and premises of the Company,
personally or by agent or attorney upon reasonable prior notice.
	 
	 	     (B) Before the Trustee acts or refrains from acting, it may require
an Officers’ Certificate and/or an Opinion of Counsel. The Trustee shall
not be liable for any action it takes or omits to take in good faith in
reliance on such Officers’ Certificate or Opinion of Counsel.
	 
	 	     (C) Any request or direction of the Company mentioned herein shall
be sufficiently evidenced by a Company Request or Company Order and any
resolution of the Board of Directors shall be sufficiently evidenced by a
Board Resolution.
	 
	 	     (D) The Trustee may consult with counsel (such counsel to be
reasonably acceptable to the Company) and the advice of such counsel or
any Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by it
hereunder in good faith and in reliance thereon.
	 
	 	     (E) The Trustee may act through agents or attorneys and shall not be
responsible for the misconduct or negligence of any agent or attorney
appointed with due care.
	 
	 	     (F) The Trustee shall not be liable for any action it takes or omits
to take in good faith which it believes to be authorized or within its
discretion, rights or powers conferred upon it by this Indenture.
	 
	 	     (G) Except with respect to Section 6.01, the Trustee shall have no
duty to inquire as to the performance of the Company with respect to the
covenants contained in Article IV. In addition, the Trustee shall not be
deemed to have knowledge of an Event of Default except (1) any Default or
Event of Default occurring pursuant to Sections 6.01(i) and 6.01(ii) or
(2) any Default or Event of Default of which a Responsible Officer of the
Trustee shall have received written notification or obtained actual
knowledge. Delivery of reports, information and documents to the Trustee
under Article IV (other than Sections 4.04 and 4.07) is for informational
purposes only and the Trustee’s receipt of the foregoing shall not
constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company’s
compliance with any of its covenants hereunder (as to which the Trustee
is entitled to rely exclusively on Officers’ Certificates).
	 
	 	     (H) The Trustee shall be under no obligation to exercise any of the
rights or powers vested by this Indenture at the request or direction of
any of the Holders pursuant to this Indenture unless such Holders shall
have offered to the Trustee security or indemnity reasonably satisfactory
to the Trustee against the costs, expenses and liabilities which might be
incurred by it in compliance with such request or direction.
	 
	 	     (I) The rights, privileges, protections, immunities and benefits
given to the Trustee, including without limitation, its right to be
indemnified, are extended to, and

38

 

		
	 	shall be enforceable by, the Trustee in each of its capacities
hereunder, and each agent, custodian and other person employed to act
hereunder.
	 
	 	     (J) The Trustee may request that the Company deliver an Officers’
Certificate setting forth the names of individuals and/or titles of
officers authorized at such time to take specified actions pursuant to
this Indenture, which Officers’ Certificate may be signed by any person
authorized to sign an Officers’ Certificate, including any person
specified as so authorized in any such certificate previously delivered
and not superseded.

     7.03 Individual Rights of Trustee.

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

     7.04 Trustee’s Disclaimer.

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

     7.05 Notice of Defaults.

          If a Default or Event of Default occurs and is continuing as to which the
Trustee has received notice pursuant to the provisions of this Indenture, the
Trustee shall mail to each Securityholder a notice of the Default or Event of
Default within 30 days after it occurs unless such Default or Event of Default
has been cured or waived. Except in the case of a Default or Event of Default
in payment of any amounts due with respect to any Security, the Trustee may
withhold the notice if and so long as it in good faith determines that
withholding the notice is in the interests of Securityholders.

     7.06 Reports by Trustee to Holders.

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

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

39

 

     7.07 Compensation and Indemnity.

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

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

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

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

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

     7.08 Replacement of Trustee.

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

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

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

40

 

		
	 	     (ii) the Trustee is adjudged a bankrupt or an insolvent;
	 
	 	     (iii) a receiver or other public officer takes charge of the Trustee
or its property; or
	 
	 	     (iv) the Trustee becomes incapable of acting.

          If the Trustee resigns or is removed or if a vacancy exists in the office
of Trustee for any reason, the Company shall promptly appoint a successor
Trustee.

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

          If the Trustee fails to comply with Section 7.10, any Holder may petition
any court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor Trustee.

          A successor Trustee shall deliver a written acceptance of its appointment
to the retiring Trustee and to the Company. Thereupon the resignation or
removal of the retiring Trustee shall become effective, and the successor
Trustee shall have all the rights, powers and duties of the Trustee under this
Indenture. The successor Trustee shall mail a notice of its succession to
Securityholders. The retiring Trustee shall promptly transfer all property
held by it as Trustee to the successor Trustee, subject to the lien provided
for in Section 7.07.

     7.09 Successor Trustee by Merger, etc.

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

     7.10 Eligibility; Disqualification.

          There shall at all times be a Trustee hereunder that is a corporation
organized and doing business under the laws of the United States of America or
of any state thereof that is authorized under such laws to exercise corporate
trustee power, that is subject to supervision or examination by federal or
state authorities and that has a combined capital and surplus of at least $100
million as set forth in its most recent published annual report of condition.
The Trustee shall comply with TIA § 310(b).

     7.11 Preferential Collection of Claims Against Company.

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

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ARTICLE VIII

DISCHARGE OF INDENTURE

     8.01 Termination of the Obligations of the Company.

          The Company may terminate all of its obligations under this Indenture if
all Securities previously authenticated and delivered (other than mutilated,
destroyed, lost or stolen Securities which have been replaced or paid as
provided in Section 2.07) have been delivered to the Trustee for cancellation
or if:

		
	 	     (i) the Securities mature within one year or all of them are to be
called for redemption within one year under arrangements satisfactory to
the Trustee for giving the notice of redemption;
	 
	 	     (ii) the Company irrevocably deposits in trust with the Trustee
money or U.S. Government Obligations sufficient to pay the principal or
Redemption Price of and any unpaid and accrued interest on the Securities
to maturity or redemption, as the case may be. Immediately after making
the deposit, the Company shall give notice of such event to the
Securityholders;
	 
	 	     (iii) the Company has paid or caused to be paid all sums then
payable by the Company to the Trustee hereunder as of the date of such
deposit; and
	 
	 	     (iv) the Company has delivered to the Trustee an opinion of counsel
and an Officers’ Certificate stating that all conditions precedent
provided for herein relating to the satisfaction and discharge of this
Indenture have been complied with. The Company may make the deposit only
during the one-year period and only if Article XI permits it.

However, the Company’s obligations in Sections 2.02, 2.03, 2.04, 2.05, 2.06,
2.07, 2.08, 2.15, 2.16, 2.17, 4.01, 4.02, 7.07, 7.08 and Article VIII and
Article X shall survive until the Securities are no
longer outstanding. Thereafter the obligations of the Company in Sections 7.07
and 8.03 shall survive.

          After a deposit pursuant to this Section 8.01, the Trustee upon request
shall acknowledge in writing the discharge of the obligations of the Company
under the Securities and this Indenture, except for those surviving obligations
specified above.

          In order to have money available on a payment date to pay the principal or
Redemption Price of and any unpaid and accrued interest on the Securities, the
U.S. Government Obligations shall be payable as to principal and any unpaid and
accrued interest on or before such payment date in such amounts as will provide
the necessary money.

          “U.S. Government Obligations” means direct non-callable obligations of, or
non-callable obligations guaranteed by, the United States of America for the
payment of which the full faith and credit of the United States of America is
pledged.

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     8.02 Application of Trust Money.

          The Trustee shall hold in trust money or U.S. Government Obligations
deposited with it pursuant to Section 8.01. It shall apply the deposited money
and the money from U.S. Government Obligations through the Paying Agent and in
accordance with this Indenture to the payment of the principal or Redemption
Price of and any unpaid and accrued interest on the Securities. Money and
securities so held in trust are not subject to the subordination provisions of
Article XI.

     8.03 Repayment to Company.

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

     8.04 Reinstatement.

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

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ARTICLE IX

AMENDMENTS

     9.01 Without Consent of Holders.

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

		
	 	     (i) to evidence a successor to the Company and the assumption by
that successor of the Company’s obligations under this Indenture and the
Securities;
	 
	 	     (ii) to evidence and provide for the acceptance of the appointment
under this Indenture of a successor Trustee;
	 
	 	     (iii) to add to the covenants of the Company described in this
Indenture for the benefit of Securityholders or to surrender any right or
power conferred upon the Company;
	 
	 	     (iv) to secure the obligations of the Company in respect of the
Securities;
	 
	 	     (v) to make any changes or modifications to this Indenture necessary
in connection with the registration of the Securities under the
Securities Act and the qualification of the Indenture under the TIA;
	 
	 	     (vi) to cure any ambiguity, inconsistency or other defect in this
Indenture; or
	 
	 	     (vii) to comply with Sections 5.01 and 10.12.

          Notwithstanding the foregoing, no supplemental indenture pursuant to the
foregoing clauses (iii), (iv), (v) or (vi) may be entered into without the
consent of the holders of a majority in principal amount of the Securities if
such supplemental indenture would materially and adversely affect the interests
of the Holders of the Securities.

     9.02 With Consent of Holders.

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

		
	 	     (i) reduce the rate of or change the time for payment of interest
(including any contingent interest, if any) or any liquidated damages, if
any, on any Security;

44

 

		
	 	     (ii) make any Security payable in money or securities other than as
stated in such Security;

		
	 	     (iii) change the stated maturity of any Security;

		
	 	     (iv) reduce the principal amount, Redemption Price (including the
Make Whole Payment portion of the Redemption Price) or Repurchase Price
of any Security;

		
	 	     (v) make any change that adversely affects the right of a Holder to
require the Company to repurchase a Security in accordance with Article
III;

		
	 	     (vi) make any change that adversely affects the right to convert, or
receive payment with respect to, any Security or the right to institute
suit for the enforcement of any payment with respect to, or conversion
of, any Security;

		
	 	     (vii) modify the provisions of Article XI hereof in a manner adverse
to the Holders; or

		
	 	     (viii) reduce the amount of Securities whose Holders must consent to
an amendment, supplement or waiver.

            An amendment under this Section 9.02 may not make any change that
adversely affects the rights under Article XI of any holder of Senior
Indebtedness unless the holders of such Senior Indebtedness pursuant to its
terms consent to the change.

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

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

     9.03 Compliance with Trust Indenture Act.

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

     9.04 Revocation and Effect of Consents.

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

45

 

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

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

     9.05 Notation on or Exchange of Securities.

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

     9.06 Trustee Protected.

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

ARTICLE X

CONVERSION

     10.01 Conversion Privilege; Restrictive Legends.

          Subject to the provisions of this Article X, a Holder of a Security
may convert such Security into Common Stock (the shares of Common Stock
issuable upon such conversion, the “Conversion Shares”), at the
conversion rate then in effect, if any of the following conditions is
satisfied:

	 	(a)	 	during any Conversion Period prior to June 15,
2021, if the Sale Price for at least 20 Trading Days in the
period of 30 consecutive Trading Days ending on the first day
of such Conversion Period is greater than 120% of the
Conversion Price on the first day of such Conversion Period;
	 
	 	(b)	 	at any time on or after June 15, 2021 through the
business day immediately prior to the Maturity Date, if the
Sale Price on any date on or after June 15, 2021 is greater
than 120% of the then current Conversion Price;

46

 

	 	(c)	 	during the five Trading Day period immediately
following a period of five consecutive Trading Days in which
the average of the Trading Prices (as determined following a
request by a Holder of the Securities in accordance with the
procedures set forth below in this Section 10.01) was less
than 95% of the average Sale Price during such five Trading
Day period multiplied by the then current conversion rate (the
condition specified in this clause (c) being the “95% Trading
Condition”);
	 
	 	(d)	 	the Security has been called for redemption by
the Company pursuant to Section 3.01;
	 
	 	(e)	 	the Company (i) distributes rights, options or
warrants referred to in Section 10.06(b) or (ii) makes a
distribution referred to in Section 10.06(c) where the fair
market value of such distribution per share of Common Stock
(as determined by the Board of Directors of the Company, which
determination shall be conclusive evidence of such fair market
value) exceeds 10.0% of the Sale Price on the Trading Day
immediately preceding the date of declaration of such
distribution; or
	 
	 	(f)	 	(x) the Company is party to a consolidation,
merger, share exchange, sale of all or substantially all of
its assets or other similar transaction pursuant to which the
Common Stock is subject to conversion into shares of stock,
other securities or property (including cash) pursuant to
Section 10.12 and (y) the conversion of such Security occurs
at any time from and after the date that is 15 days prior to
the date of the anticipated effective time of such transaction
until and including the date that is 15 days after the actual
effective date of such transaction.

          Prior to June 15, 2021, in connection with the foregoing clause (a), the
Conversion Agent shall, on the Company’s behalf, determine daily if the
Securities are convertible pursuant to such clause (a) and, at the end of each
Conversion Period, the Conversion Agent shall, promptly notify the Company and
the Holders if the Securities are convertible in the immediately succeeding
Conversion Period.

          Commencing on and after June 15, 2021, in connection with the foregoing
clause (b), the Conversion Agent shall, on the Company’s behalf, determine
daily if the Securities are convertible pursuant to such clause (b), and the
Conversion Agent shall promptly notify the Company and the Holders if the
Securities are convertible pursuant to such clause (b). On and after such date
that the Securities shall have become convertible pursuant to such clause (b),
the Securities shall remain convertible through the business day prior to the
Maturity Date.

          In the case of the foregoing clauses (e)(i) and (ii), the Company must
notify the Holders at least 20 days prior to the ex-dividend date for such
issuance or distribution. Once the Company has given such notice, Holders may
surrender their Securities for conversion at any time thereafter 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 issuance or distribution will not
take

47

 

place. This provision shall not apply if the Holder of a Security
otherwise participates in the distribution without conversion.

          The “ex-dividend date” for any such issuance or distribution means the
date immediately prior to the commencement of “ex-dividend” trading for such
issuance or distribution on the NASDAQ National Market or the principal U.S.
exchange or quotation system on which the Common Stock on which the Common
Stock is then listed or quoted.

          The number of shares of Common Stock issuable upon conversion of each
$1,000 principal amount of Securities shall be equal to the “conversion rate.”
The initial conversion rate is 64.9773 shares of Common Stock per $1,000
principal amount of Securities, or an effective initial Conversion Price of
approximately $15.39 per share). The conversion rate is subject to adjustment
in accordance with Sections 10.06 through 10.12.

          A Holder may convert a portion of a Security equal to $1,000 or any
integral multiple thereof. Provisions of this Indenture that apply to
conversion of all of a Security also apply to conversion of a portion of a
Security.

          If a Security is called for redemption pursuant to Section 3.01, the right
to convert such Security shall terminate at the close of business on the
business day before the Redemption Date for such Security (unless the Company
shall default in making the redemption payment then due, in which case the
conversion right shall terminate on the date such default is cured and such
Security is redeemed). A Security in respect of which a Holder has delivered
an Option of Holder to Elect Repurchase Notice pursuant to Section 3.08 or
Section 3.09 exercising the option of such Holder to require the Company to
repurchase such Security may be converted only if such notice is withdrawn in
accordance with Section 3.11.

          A Holder of Securities is not entitled to any rights of a holder of Common
Stock until such Holder has converted its Securities into Common Stock and,
upon such conversion, only to the extent such Securities are deemed to have
been converted into Common Stock pursuant to this Article X.

          The “Trading Price” per $1,000 in principal amount of Securities on any
date of determination means the average of the secondary market bid quotations
per $1,000 in principal amount of Securities obtained by the Trustee for
$5,000,000 in principal amount of Securities at approximately 3:30 p.m., New
York City time, on such determination date from two independent nationally
recognized securities dealers selected by the Company; provided that if at
least two such bids cannot reasonably be obtained by the Trustee, but one such
bid can be reasonably obtained by the Trustee, then such one bid shall be used.
If the Trustee cannot reasonably obtain at least one bid for $5,000,000 in
principal amount of Securities from a nationally recognized securities dealer
or, in the reasonable judgment of the Company, the bid quotations are not
indicative of the secondary market value of the Securities, then the Trading
Price will equal (a) the applicable conversion rate multiplied by (b) the Sale
Price on such determination date. The Trustee will determine the Trading Price
after being requested to do so by the Company. The Company shall have no
obligation to make that request unless a Holder provides the Company with
reasonable evidence that the Trading Price per $1,000 principal amount of
Securities may be less than 95% of the Sale Price multiplied by the then
current conversion rate. If a Holder

48

 

provides such evidence, the Company shall instruct the Trustee to
determine the Trading Price of the Securities beginning on the next Trading Day
and on each successive Trading Day (i) for 30 Trading Days or (ii) until the
date that the average Trading Price per $1,000 principal amount of Securities
for any five consecutive Trading Days is equal to or greater than 95% of the
average Sale Price during such five consecutive Trading Days multiplied by the
then current conversion rate, whichever is earlier.

          Any shares issued upon conversion of a Security shall bear the Private
Placement Legend until after the second anniversary of the later of (i) the
issue date for the Securities, (ii) the last date on which the Company or any
Affiliate of the Company was the owner of such Security (or any predecessor
security) (or such shorter period of time as permitted by Rule 144(k) under the
Securities Act or any successor provision thereunder) (or such longer period of
time as may be required under the Securities Act or applicable state securities
laws in the opinion of counsel for the Company, unless otherwise agreed between
the Company and the Holder thereof).

     10.02 Conversion Procedure.

          To convert a Security, a Holder must satisfy the requirements in Paragraph
10 of the Securities. The date on which the Holder satisfies all those
requirements is the “conversion date.” As promptly as practicable following
the conversion date, the Company shall deliver to the Holder through the
Trustee (who shall deliver to the Conversion Agent) a certificate for, or a
book-entry notation of, the number of full shares of Common Stock issuable upon
the conversion and Cash in lieu of any fractional share. The person in whose
name the certificate is registered shall be treated as a stockholder of record
on and after the conversion date.

          Except as described below, no payment or adjustment will be made for
accrued interest (including contingent interest, if any) on, or liquidated
damages, if any, with respect to, a converted Security or for dividends or
distributions on any shares of Common Stock issued on or prior to conversion
(provided that the shares of Common Stock received upon conversion of
Securities shall accrue liquidated damages, if any, and shall be entitled to
receive, at the next interest payment date, any accrued and unpaid liquidated
damages with respect to the converted Securities, in accordance with the terms
and subject to the conditions set forth in the Registration Rights Agreement).
Delivery by the Company to the Holder of the Security converted of the number
of shares of Common Stock into which the Security is convertible, at the
Conversion Price in effect at such time, shall satisfy the obligations of the
Company to pay the principal amount of such Security being converted and the
accrued but unpaid interest on such Security through the conversion date; any
such accrued but unpaid interest shall be deemed to be paid in full rather than
canceled, extinguished or forfeited. The conversion rate in effect at any time
will be adjusted only in accordance with Section 10.06 through 10.12; the
conversion rate will not be adjusted to account for accrued interest.

          If any Holder surrenders a Security for conversion after the close of
business on the record date for the payment of an installment of interest and
prior to the opening of business on the immediately succeeding interest payment
date, then, notwithstanding such conversion, the interest (including contingent
interest, if any) or liquidated damages, if any, payable on such interest
payment date shall be paid to the Holder of such Security on such record date;
provided,

49

 

however, that such Security, when surrendered for conversion, must be
accompanied by payment to the Conversion Agent on behalf of the Company of an
amount equal to the interest (including contingent interest, if any) or
liquidated damages, if any, payable on such interest payment date on the
portion so converted; provided, further, however, that such payment to the
Conversion Agent described in the immediately preceding proviso shall not be
required in connection with any conversion of a Security called for redemption
pursuant to Section 3.01 hereof on a Redemption Date that is from and including
the record date for the payment of interest and on or before the next
succeeding interest payment date.

          If on the day before the conversion date of a Security pursuant to the 95%
Trading Condition the Sale Price is greater than the Conversion Price but less
than or equal to 120% of such Conversion Price, the Company may elect to pay to
the Holder of such Security, in lieu of issuance of Conversion Shares based on
the Conversion Price, Cash or Common Stock or a combination of Cash and Common
Stock, at the Company’s option, with a value equal to 100% of the principal
amount of the Security surrendered for conversion as of such conversion date (a
“Principal Value Conversion”). The Company shall notify the surrendering Holder
of any Security whose conversion is a Principal Value Conversion and the
Trustee (such notice being a “Principal Value Conversion Notice”) of such
Principal Value Conversion by the second Trading Day following the conversion
date for such conversion and whether the Company shall pay to such Holder all
or a portion of the principal amount of such Security in Cash, Common Stock or
a combination of Cash and Common Stock and, if a combination, the percentages
of the principal amount in respect of which it will pay in Cash or Common
Stock. The Company may not change its election with respect to the
consideration (or components or percentages of components thereof) to be paid
upon a Principal Value Conversion once the Company has given its Principal
Value Conversion Notice to the Holder surrendering such Security whose
conversion is a Principal Value Conversion. Any Common Stock to be delivered
upon a Principal Value Conversion shall be valued at the average Sale Price for
the five consecutive Trading Days ending on or prior to the third Trading Day
preceding the conversion date. The Company shall pay any portion of the
principal amount to be paid in Cash in a Principal Value Conversion on or prior
to the third Trading Day after the conversion date. With respect to any portion
of the principal amount to be paid in Common Stock in a Principal Value
Conversion, the Company shall deliver the Common Stock to the Holder of the
Security surrendered for conversion in such Principal Value Conversion on or
prior to the fourth Trading Day following the conversion date.

          If a Holder converts more than one Security at the same time, the number
of full shares issuable upon the conversion shall be based on the total
principal amount of the Securities converted.

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

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

50

 

     10.03 Fractional Shares.

          The Company will not issue fractional shares of Common Stock upon
conversion of Securities. Instead, the Company will pay Cash for all
fractional shares based on the Sale Price at the close of business on the last
Trading Day prior to the conversion date. The Sale Price of a fractional share
shall be determined to the nearest 1/1,000th of a share, by multiplying the
applicable Sale Price of a full share by the fractional amount and rounding to
the nearest whole cent. It is understood that if a Holder elects to have more
than one Security converted, the number of shares of Common Stock issuable upon
conversion and the Cash payment in lieu of fractional shares shall be based on
the aggregate principal amount of Securities converted.

     10.04 Taxes on Conversion.

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

     10.05 Company to Provide Stock.

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

          All shares of Common Stock which may be issued upon conversion of the
Securities shall be validly issued, fully paid and nonassessable.

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

     10.06 Adjustment of Conversion Rate.

          The conversion rate shall be subject to adjustment from time to time as
follows:

		
	 	     (a) In case the Company shall (1) pay a dividend in shares of Common
Stock to all holders of Common Stock, (2) make a distribution in shares
of Common Stock to all or substantially all holders of Common Stock, (3)
subdivide the outstanding shares of Common Stock into a greater number of
shares of Common Stock, (4) combine the outstanding shares of Common
Stock into a smaller number of shares of Common Stock or (5) reclassify
its outstanding Common Stock, the conversion rate in effect immediately
prior to such action shall be adjusted so that the holder of any Security
thereafter surrendered for conversion shall be entitled to receive the
number of shares of Common

51

 

		
	 	
Stock which he would have owned immediately following such action
had such Securities been converted immediately prior thereto. Any
adjustment made pursuant to this Section 10.06(a) shall become effective
immediately after the record date in the case of a dividend or
distribution and shall become effective immediately after the effective
date in the case of a subdivision, combination, or reclassification.

		
	 	     (b) In case the Company shall issue rights, options or warrants to
all or substantially all holders of Common Stock, as the case may be,
entitling them (for a period commencing no earlier than the record date
for the determination of Holders of Common Stock entitled to receive such
rights, options or warrants and expiring not more than 60 days after such
record date) to subscribe for or purchase shares of Common Stock (or
securities convertible into Common Stock), at a price per share less than
the then current market price (as determined pursuant to Section 10.06(g)
below) per share of Common Stock on such record date, the conversion rate
shall be increased by multiplying the conversion rate in effect
immediately prior to such record date by a fraction of which the
numerator shall be the number of shares of Common Stock outstanding on
such record date, plus the number of shares of Common Stock so offered
for subscription or purchase, and the denominator of which shall be the
number of shares of Common Stock outstanding at the close of business on
such record date plus the number of shares of Common Stock which the
aggregate of the offering price of the total number of shares of Common
Stock so offered for subscription or purchase would purchase at such
current market price. Such adjustments shall become effective
immediately after such record date.

		
	 	     (c) In case the Company shall distribute to all or substantially all
holders of Common Stock shares of capital stock of the Company other than
Common Stock, evidences of indebtedness, cash or other assets (other than
cash dividends out of current or retained earnings) or shall distribute
to all or substantially all holders of Common Stock rights, options or
warrants to subscribe for securities (in each case other than those
referred to in Section 10.06(a) and (b) above and Section 10.06(d) and
(e) below), then in each such case the conversion rate shall be increased
by multiplying the conversion rate in effect immediately prior to the
close of business on the record date for the determination of
shareholders entitled to such distribution by a fraction of which the
numerator shall be the current market price per share of Common Stock
(determined as provided in Section 10.06(g) below) on such date and the
denominator shall be such current market price less the fair market value
(as determined by the Board of Directors whose determination shall be
conclusive and described in a Board Resolution) on such date of the
portion of the evidences of indebtedness, shares of capital stock, cash
and other assets to be distributed or of such subscription rights,
options or warrants applicable to one share of Common Stock, such
increase to become effective immediately prior to the opening of business
on the day following such record date. Notwithstanding the foregoing, in
the event that the Company shall distribute rights, options or warrants
(other than those referred to in Section 10.06(b) above)
(“Rights”) pro rata to holders of Common Stock, the Company may, in lieu of making any
adjustment pursuant to this Section 10.06(c), make proper provision so
that each Holder of a Security who converts such Security (or any portion
thereof) after the record date for such distribution and prior to the
expiration or redemption of the Rights shall be entitled to receive upon
such conversion, in addition to the Conversion Shares, a

52

 

		
	 	number of Rights to be determined as follows: (i) if such
conversion occurs on or prior to the date for the distribution to the
holders of Rights of separate certificates evidencing such Rights (the
“Distribution Date”), the same number of Rights to which a holder of a
number of shares of Common Stock equal to the number of shares of
Conversion Shares is entitled at the time of such conversion in
accordance with the terms and provisions of and applicable to the Rights;
and (ii) if such conversion occurs after the Distribution Date, the same
number of Rights to which a holder of the number of shares of Common
Stock into which the principal amount of the Security so converted was
convertible immediately prior to the Distribution Date would have been
entitled on the Distribution Date in accordance with the terms and
provisions of and applicable to the Rights.

		
	 	     (d) In case the Company shall make a distribution consisting
exclusively of cash to all or substantially all holders of Common Stock,
then the conversion rate shall be increased by multiplying the conversion
rate in effect immediately prior to the close of business on the record
date for the determination of shareholders entitled to such distribution
by a fraction of which the numerator shall be the current market price
per share of Common Stock (determined as provided in Section 10.06(g)
below) on such date and the denominator shall be such current market
price less the amount of cash to be distributed per share of Common
Stock, such increase to become effective immediately prior to the opening
of business on the day following such record date; provided, however,
that after June 20, 2010, the conversion rate shall be so adjusted only
if the amount of cash being distributed per share of Common Stock,
combined together with all other such cash distributions made within the
preceding 12 months in respect of which no adjustment has been made under
this Section 10.06, is greater than the amount of interest (exclusive of
any contingent interest or liquidated damages) paid during the preceding
12 months on the principal amount of Securities that would be convertible
into one share of Common Stock, based on the conversion rate in effect on
such record date.

		
	 	     (e) In case a repurchase (including by way of tender offer or
exchange offer) made by the Company or any of its subsidiaries for all or
any portion of the Common Stock shall expire and such repurchase (as
amended upon the expiration thereof) shall require the payment to
stockholders (based on the acceptance (up to any maximum specified in the
terms of the repurchase) of Purchased Shares (as defined below)) of an
aggregate consideration having a fair market value (as determined by the
Board of Directors, whose determination shall be conclusive and set forth
in a Board Resolution) that combined together with:

	 	(1)	 	the aggregate of the cash plus the fair market value (as
determined by the Board of Directors, whose determination shall be
conclusive and set forth in a Board Resolution), as of the
expiration of such repurchase, of other consideration payable in
respect of any other tender offers, exchange offers or other
repurchases, by the Company or any of its subsidiaries for all or
any portion of the Common Stock expiring within the 12 months
preceding the expiration of such repurchase and in respect of which
no adjustment pursuant to this Section 10.06 has been made; and

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	 	(2)	 	the aggregate amount of any distributions to all or
substantially all holders of the Company’s Common Stock made
exclusively in cash within the 12 months preceding the expiration of
such repurchase and in respect of which no adjustment pursuant to
Section 10.06 has been made,

		
	 	exceeds 10% of the product of (x) the current market price per share (as
determined in accordance with Section 10.06(g)) as of the last time (the
“Expiration Time”) tenders, exchanges or other repurchases could have
been made pursuant to such repurchase (as it may be amended) and (y) the
number of shares of Common Stock outstanding (including any tendered
shares, exchanged shares or repurchased shares) at the Expiration Time,
then, and in each such case, immediately prior to the opening of business
on the day after the date of the Expiration Time, the conversion rate
shall be adjusted by multiplying the conversion rate in effect
immediately prior to the close of business on the date of the Expiration
Time by a fraction:

		
	 	     (i) the numerator of which shall be the sum of (x) the fair market
value (determined as aforesaid) of the aggregate consideration payable to
stockholders based on the acceptance (up to any maximum specified in the
terms of the tender offer, exchange offer or other repurchase 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”) and (y) the product of the
number of shares of Common Stock outstanding (less any Purchased Shares)
at the Expiration Time and the current market price of the Common Stock
as of the Expiration Time; and

		
	 	     (ii) the denominator of which shall be the number of shares of
Common Stock outstanding (including any tendered, exchanged or
repurchased shares) at the Expiration Time multiplied by the current
market price of the Common Stock as of the Expiration Time.

		
	 	     Such adjustment (if any) shall become effective immediately prior to the
opening of business on the day following the Expiration Time. In the
event that the Company is obligated to purchase shares pursuant to any
such repurchase, but the Company is permanently prevented by applicable
law from effecting any such repurchase or all such repurchase are
rescinded, the conversion rate shall again be adjusted to be the
conversion rate which would then be in effect if such repurchase had not
been made. If the application of this Section 10.06(e) to any repurchase
(including by way of tender offer or exchange offer) would result in a
decrease in the conversion rate, no adjustment shall be made for such
repurchase under this Section 10.06(e).

		
	 	     (f) In addition to the foregoing adjustments in subsections (a),
(b), (c), (d) and (e) above, the Company, from time to time and to the
extent permitted by law, may increase the conversion rate by any amount
for at least 20 days or such longer period as may be required by law, if
the Board of Directors of the Company has made a determination, which
determination shall be conclusive, that such increase would be in the
best interests of the Company, provided that the effective Conversion
Price is not less than the par value of a share of Common Stock. The
Company shall give notice to the

54

 

		
	 	Trustee and cause notice of such increase to be mailed to each
Holder at such Holder’s address as the same appears on the registry books
of the Registrar, at least 15 days prior to the date on which such
increase commences. Any increase, however, will not be taken into
account for purposes of determining whether the Sale Price equals or
exceeds the Conversion Price by 105% in connection with an event that
otherwise would be a Change in Control. Such conversion rate increase
shall be irrevocable during such period.

		
	 	     (g) For the purpose of any computation under subsections (a), (b),
(c), (d) and (e) above of this Section 10.06, the current market price
per share of Common Stock on the date fixed for determination of the
stockholders entitled to receive the issuance or distribution requiring
such computation (the “Determination Date”) shall be deemed to be the
average of the Sale Price for the ten consecutive Trading Days
immediately preceding the Determination Date; provided, however, that (i)
if the “ex” date for any event (other than the issuance or distribution
requiring such computation) that requires an adjustment to the conversion
rate pursuant to subsection (a), (b), (c), (d) or (e) above occurs on or
after the tenth Trading Day prior to the Determination Date and prior to
the “ex” date for the issuance or distribution requiring such
computation, the Sale Price for each Trading Day prior to the “ex” date
for such other event shall be adjusted by multiplying such Sale Price by
the reciprocal of the fraction by which the conversion rate is so
required to be adjusted as a result of such other event, (ii) if the “ex”
date for any event (other than the issuance or distribution requiring
such computation) that requires an adjustment to the conversion rate
pursuant to subsection (a), (b), (c), (d) or (e) above occurs on or after
the “ex” date for the issuance or distribution requiring such computation
and on or prior to the Determination Date, the Sale Price for each
business day on and after the “ex” date for such other event shall be
adjusted by multiplying such Sale Price by the same fraction by which the
conversion rate is so required to be adjusted as a result of such other
event, and (iii) if the “ex” date for the issuance or distribution
requiring such computation is on or prior to the Determination Date,
after taking into account any adjustment required pursuant to clause (i)
or (ii) of this proviso, the Sale Price for each Trading Day on and after
the “ex” date shall be adjusted by adding thereto the amount of any cash
and the fair market value (as determined by the Board of Directors in a
manner consistent with any determination of such value for the purposes
of this Section 10.06, whose determination shall be conclusive and
described in a Resolution of the Board of Directors) of the evidences of
indebtedness, shares of capital stock or other securities or assets being
distributed (in the distribution requiring such computation) applicable
to one share of Common Stock as of the close of business on the day
before such “ex” date. For the purpose of any computation under
subsection (e) of this Section 10.06, the current market price per share
of Common Stock at the expiration time for the repurchase requiring such
computation shall be deemed to be the average of the Sale Price for the
ten consecutive Trading Days commencing on the business day immediately
following the expiration time of such repurchase (the “Commencement
Date”); provided, however, that if the “ex” date for any event (other
than the repurchase requiring such computation) that requires an
adjustment to the conversion rate pursuant to subsection (a), (b), (c),
(d) or (e) above occurs on or after the expiration time for the
repurchase requiring such computation and prior to the day in question,
the Sale Price for each Trading Day on or after the “ex” date for such
other event shall be adjusted by multiplying such Sale Price by the same
fraction by which the conversion rate is so required to be adjusted as a
result of such other event.

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	 	For purposes of this subsection, the term “ex” date, (i) when used
with respect to any issuance or distribution, 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 issuance or distribution, (ii) when used with
respect to any subdivision or combination of shares of Common Stock,
means the first date on which the Common Stock trades regular way on such
exchange or in such market after the time at which such subdivision or
combination becomes effective, and (iii) when used with respect to any
repurchase means the first date on which the Common Stock trades regular
way on such exchange or in such market after the expiration time of such
repurchase (as it may be amended or extended).

     10.07 No Adjustment.

          No adjustment in the conversion rate shall be required until cumulative
adjustments amount to 1% or more of the conversion rate as last adjusted;
provided, however, that any adjustments which by reason of this Section 10.07
are not required to be made shall be carried forward and taken into account in
any subsequent adjustment. All calculations under this Article X shall be made
to the nearest cent or to the nearest one-hundredth of a share, as the case may
be. No adjustment need be made for rights to purchase Common Stock pursuant to
a Company plan for reinvestment of dividends or interest. No adjustment need
be made for a change in the par value of the Common Stock.

          If any rights, options or warrants issued by the Company as described in
Section 10.06 are only exercisable upon the occurrence of certain triggering
events, then the conversion rate will not be adjusted as provided in Section
10.06 until the earliest of such triggering event occurs. Upon the expiration
or termination of any rights, options or warrants without the exercise of such
rights, options or warrants, the conversion rate then in effect shall be
adjusted immediately to the conversion rate which would have been in effect at
the time of such expiration or termination had such rights, options or
warrants, to the extent outstanding immediately prior to such expiration or
termination, never been issued.

          No adjustment need be made for a transaction referred to in this Article X
if Securityholders are to participate in the transaction without conversion on
a basis and with notice that the Board of Directors determines to be fair and
appropriate in light of the basis and notice on which holders of Common Stock
participate in the transaction.

     10.08 Other Adjustments.

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

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10.09 Adjustments for Tax Purposes.

          The Company may make such increases in the conversion rate, in addition to
those required by Section 10.06 hereof, as it determines to be advisable in
order that any stock dividend, subdivision of shares, distribution or rights to
purchase stock or securities or distribution of securities convertible into or
exchangeable for stock made by the Company or to its stockholders will not be
taxable to the recipients thereof.

     10.10 Notice of Adjustment.

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

     10.11 Notice of Certain Transactions.

          In the event that:

		
	 	     (1) the Company takes any action which would require an adjustment
in the conversion rate;

		
	 	     (2) the Company takes any action that would require a supplemental
indenture pursuant to Section 10.12; or

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

a Holder of a Security may wish to convert such Security into shares of Common
Stock prior to the record date for or the effective date of the transaction so
that he may receive the rights, warrants, securities or assets which a holder
of shares of Common Stock on that date may receive. Therefore, the Company
shall mail to Holders at the addresses appearing on the Registrar’s books and
the Trustee a notice stating the proposed record or effective date, as the case
may be, of any transaction referred to in clause (1), (2) or (3) of this
Section 10.11. The Company shall mail such notice at least 15 days before such
date; however, failure to mail such notice or any defect therein shall not
affect the validity of any transaction referred to in clause (1), (2) or (3) of
this Section 10.11.

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

          If any of the following shall occur, namely: (i) any reclassification or
change in the Common Stock issuable upon conversion of Securities (other than a
change in par value, or from par value to no par value, or from no par value to
par value, or as a result of a subdivision or combination), (ii) any
consolidation, merger or binding share exchange to which the Company is a party
other than a merger in which the Company is the continuing corporation and
which

57

 

does not result in any reclassification of, or change (other than a change
in name, or par value, or from par value to no par value, or from no par value
to par value or as a result of a subdivision or combination) in, the Common
Stock, or (iii) any sale or conveyance of all or substantially all of the
property or business of the Company as an entirety, then the Company or such
successor or purchasing corporation, as the case may be, shall, as a condition
precedent to such reclassification, change, consolidation, merger, binding
share exchange, sale or conveyance, execute and deliver to the Trustee a
supplemental indenture in form reasonably satisfactory to the Trustee providing
that the Holder of each Security then outstanding shall have the right to
convert such Security into the kind and amount of shares of stock and other
securities and property (including cash) receivable upon such reclassification,
change, consolidation, merger, binding share exchange, sale or conveyance by a
holder of the number of shares of Common Stock, deliverable upon conversion of
such Security immediately prior to such reclassification, change,
consolidation, merger, binding share exchange, sale or conveyance. Such
supplemental indenture shall provide for adjustments of the conversion rate
that shall be as nearly equivalent as may be practicable to the adjustments of
the conversion rate provided for in this Article X. The foregoing, however,
shall not in any way affect the right a Holder of a Security may otherwise
have, pursuant to clause (ii) of the last sentence of subsection (c) of Section
10.06 hereof, to receive Rights upon conversion of a Security. If, in the case
of any such consolidation, merger, binding share exchange, sale or conveyance,
the stock or other securities and property (including cash) receivable
thereupon by a holder of Common Stock includes shares of stock or other
securities and property of a corporation other than the successor or purchasing
corporation, as the case may be, in such consolidation, merger, binding share
exchange, sale or conveyance, then such supplemental indenture shall also be
executed by such other corporation and shall contain such additional provisions
to protect the interests of the Holders of the Securities as the Board of
Directors shall reasonably consider necessary by reason of the foregoing. The
provision of this Section 10.12 shall similarly apply to successive
consolidations, mergers, binding share exchanges, sales or conveyances. This
Section 10.12 shall not apply to any consolidation, merger, binding share
exchange, sale or conveyance of all or substantially all of the property or
business of the Company as an entirety that does not result in any
reclassification, conversion, exchange or cancellation of the Common Stock.

          In the event the Company shall execute a supplemental indenture pursuant
to this Section 10.12, the Company shall promptly file with the Trustee an
Officers’ Certificate briefly stating the reasons therefor, the kind or amount
of shares of stock or securities or property (including cash) receivable by
Holders of the Securities upon the conversion of their Securities after any
such reclassification, change, consolidation, merger, binding share exchange,
sale or conveyance and any adjustment to be made with respect thereto.

     10.13 Trustee’s Disclaimer.

          The Trustee has no duty to determine when an adjustment under this Article
X should be made, how it should be made or what such adjustment should be, but
may accept as conclusive evidence of the correctness of any such adjustment,
and shall be protected in relying upon the Officers’ Certificate with respect
thereto which the Company is obligated to file with the Trustee pursuant to
Section 10.10 hereof. The Trustee makes no representation as to the validity
or value of any securities or assets issued upon conversion of Securities, and
the Trustee

58

 

shall not be responsible for the failure by the Company to comply with any
provisions of this Article X.

          The Trustee shall not be under any responsibility to determine the
correctness of any provisions contained in any supplemental indenture executed
pursuant to Section 10.12, but may accept as conclusive evidence of the
correctness thereof, and shall be protected in relying upon, the Officers’
Certificate with respect thereto which the Company is obligated to file with
the Trustee pursuant to Section 10.12 hereof.

ARTICLE XI

SUBORDINATION

     11.01 Agreement to Subordinate.

          The Company agrees, and each Securityholder by accepting a Security
agrees, that the payment of all amounts due with respect to the Securities is
subordinated in right of payment, to the extent and in the manner provided in
this Article XI, to the prior payment in full of all Senior Indebtedness and
that the subordination is for the benefit of the holders of Senior
Indebtedness.

          Money and securities held in trust pursuant to Article VIII are not
subject to the subordination provisions of this Article XI.

     11.02 Certain Definitions.

          “Indebtedness” means, with respect to any person, the principal of, and
premium, if any, and interest on (a) all indebtedness of such person for
borrowed money (including all indebtedness evidenced by notes, bonds,
debentures or other securities sold by such person for money), (b) all
obligations incurred by such person in the acquisition (whether by way of
purchase, merger, consolidation or otherwise and whether by such person or
another person) of any business, real property or other assets (except trade
payables), (c) guarantees by such person of indebtedness described in clause
(a) or (b) of another person, (d) all renewals, extensions, refundings,
deferrals, restructurings, amendments and modifications of any such
indebtedness, obligation or guarantee, (e) all reimbursement obligations of
such person with respect to letters of credit, bankers’ acceptances or similar
facilities issued for the account of such person, (f) all capital lease
obligations of such person and (g) all net obligations of such person under
interest rate swap, currency exchange or similar agreements of such person.

          “Representative” means the Trustee or other trustee, agent or
representative for an issue of Senior Indebtedness.

          “Senior Indebtedness” means all Indebtedness of the Company outstanding at
any time, except the Securities, Indebtedness that by its terms provides that
it shall not be “senior” in right of payment to the Securities or Indebtedness
that by its terms provides that it shall be “pari passu” or “junior” in right
of payment to the Securities. Senior Indebtedness does not include
Indebtedness of the Company to any of its subsidiaries or the
Company’s 31⁄4%
Convertible Subordinated Notes due 2007.

59

 

     11.03 Liquidation; Dissolution; Bankruptcy.

          Upon any distribution of assets to creditors of the Company in a
liquidation, winding up or dissolution of the Company, or in a bankruptcy,
reorganization, insolvency, receivership or similar proceeding relating to the
Company or its property:

		
	 	     (i) holders of Senior Indebtedness shall be entitled to receive
payment in full of the principal of and interest (including interest
accruing after the commencement of any such proceeding) to the date of
payment on the Senior Indebtedness before Securityholders shall be
entitled to receive any payment from the Company of amounts due with
respect to the Securities (other than cash payments due upon conversion
of Securities in lieu of fractional shares); and

		
	 	     (ii) until the Senior Indebtedness is paid in full, any distribution
to which Securityholders would be entitled from the Company but for this
Article XI shall be made to holders of Senior Indebtedness, as their
interests may appear, except the Securityholders may receive securities
that are subordinated to Senior Indebtedness to at least the same extent
as the Securities and payments made pursuant to Sections 8.01 and 8.02.

     11.04 Company Not To Make Payments with Respect to Securities in Certain
Circumstances.

          No payment of amounts due may be made by the Company, directly or
indirectly, with respect to the Securities (including any repurchase pursuant
to the exercise of the Repurchase Right or the Change in Control Repurchase
Right, but excluding Cash payments due upon conversion in lieu of fractional
shares) or to acquire any of the Securities at any time if a default in payment
of the principal of or premium, if any, or interest on Senior Indebtedness
exists beyond any applicable grace period, unless and until such default shall
have been cured or waived or shall have ceased to exist. During the
continuance of any default with respect to any Senior Indebtedness pursuant to
which any Senior Indebtedness has been issued (other than default in payment of
the principal of or premium, if any, or interest on any Senior Indebtedness),
permitting the holders thereof to accelerate the maturity thereof, no payment
may be made by the Company, directly or indirectly, of any amount due with
respect to the Securities (a “Payment Blockage”) until the earlier of (i) the
date on which such default has been cured or waived, (ii) 180 days following
receipt of written notice (a “Payment Blockage Notice”) to the Company from any
holder or holders thereof or its Representative or Representatives or the
trustee or trustees under any indenture under which any instrument evidencing
any such Senior Indebtedness may have been issued, that such a default has
occurred and is continuing, (iii) the date on which such Senior Indebtedness is
discharged or paid in full or (iv) the date of which the imposition of such
Payment Blockage shall have been terminated by written notice to such trustee
or the Company from such trustee or other representative initiating such
Payment Blockage. Notwithstanding the foregoing, no new Payment Blockage
Notice shall be given until a period of at least 365 consecutive days shall
have elapsed since the beginning of the prior Payment Blockage period. No
default (other than a default in payment) that existed or was continuing on the
date of delivery of any Payment Blockage Notice shall be the basis for any
subsequent Payment Blockage Notice, unless such default has been cured or
waived for a period

60

 

of not less than 90 consecutive days. However, if the maturity of such
Senior Indebtedness is accelerated, no payment may be made by the Company on
the Securities until such Senior Indebtedness that has matured has been paid or
such acceleration has been cured or waived.

          Regardless of anything to the contrary herein, nothing shall prevent (a)
any payment by the Trustee to the Securityholders of amounts deposited with it
pursuant to Article VIII or (b) any payment by the Trustee or the Paying Agent
as permitted by Section 11.12. Nothing contained in this Article XI will limit
the right of the Trustee or the Securityholders to take any action to
accelerate the maturity of the Securities pursuant to Section 6.02 or to pursue
any rights or remedies hereunder.

     11.05 Acceleration of Securities.

          If payment of the Securities is accelerated because of an Event of
Default, the Company shall promptly notify holders of Senior Indebtedness of
the acceleration.

     11.06 When Distribution Must Be Paid Over.

          In the event that the Company shall make any payment to the Trustee with
respect to the Securities at a time when such payment is prohibited by Section
11.03 or 11.04, such payment shall be held by the Trustee, in trust for the
benefit of, and shall be paid forthwith over and delivered to, the holders of
Senior Indebtedness (pro rata as to each of such holders on the basis of the
respective amounts of Senior Indebtedness held by them) or their Representative
or the trustee under the indenture or other agreement (if any) pursuant to
which Senior Indebtedness may have been issued, as their respective interests
may appear, for application to the payment of all Senior Indebtedness remaining
unpaid to the extent necessary to pay all Senior Indebtedness in full in
accordance with its terms, after giving effect to any concurrent payment or
distribution to or for the holders of Senior Indebtedness.

          If a distribution is made to Securityholders, that because of this Article
XI should not have been made to them, the Securityholders who receive the
distribution shall hold it in trust for holders of Senior Indebtedness and pay
it over to them as their interests may appear.

     11.07 Notice by Company.

          The Company shall promptly notify the Trustee and the Paying Agent in
writing of any facts known to the Company that would cause a payment of any
amount due with respect to the Securities to violate this Article XI, but
failure to give such notice shall not affect the subordination of the
Securities to the Senior Indebtedness provided in this Article XI.

     11.08 Subrogation.

          After all Senior Indebtedness is paid in full and until the Securities are
paid in full, Securityholders shall be subrogated (equally and ratably with all
other Indebtedness of the Company ranking pari passu with the Securities) to
the rights of holders of Senior Indebtedness to receive distributions
applicable to Senior Indebtedness to the extent that distributions otherwise
payable to the Securityholders have been applied to the payment of Senior
Indebtedness. A distribution made under this Article XI to holders of Senior
Indebtedness which

61

 

otherwise would have been made to Securityholders is not, as between the
Company and Securityholders, a payment by the Company on Senior Indebtedness.

     11.09 Relative Rights.

          This Article XI defines the relative rights of Securityholders and holders
of Senior Indebtedness. Nothing in this Indenture shall:

		
	 	     (i) impair, as between the Company, on the one hand, and
Securityholders, on the other hand, the obligation of the Company, which
is absolute and unconditional, to pay all amounts due with respect to the
Securities in accordance with their terms;

		
	 	     (ii) affect the relative rights of Securityholders and creditors of
the Company other than holders of Senior Indebtedness; or

		
	 	     (iii) prevent the Trustee or any Securityholder from exercising its
available remedies upon a Default or Event of Default, subject to the
rights of holders of Senior Indebtedness to receive distributions
otherwise payable to Securityholders.

          Upon any distribution of assets of the Company referred to in this Article
XI, the Trustee, subject to the provisions of Sections 7.01 and 7.02, and the
Holders of the Securities shall be entitled to rely upon any order or decree by
any court of competent jurisdiction in which such dissolution, winding up,
liquidation or reorganization proceedings are pending, or a certificate of the
liquidating trustee or agent or other person making any distribution to the
Trustee or the Holders of the Securities, for the purpose of ascertaining the
persons entitled to participate in such distribution, the holders of the Senior
Indebtedness and other indebtedness of the Company, the amount thereof or
payable thereon, the amount or amounts paid or distributed thereon and all
other facts pertinent thereto or to this Article XI. Nothing contained in this
Article XI or elsewhere in this Indenture or in any Security is intended to or
shall affect the obligation of the Company to make, or prevent the Company from
making, at any time except during the pendency of any dissolution, winding up,
liquidation or reorganization proceeding, and except during the continuance of
any default specified in Section 11.04 (not cured or waived), payments at any
time of all amounts due with respect to the Securities.

     11.10 Subordination May Not Be Impaired by Company.

          No right of any holder of Senior Indebtedness to enforce the subordination
of the indebtedness evidenced by the Securities shall be impaired by any act or
failure to act by the Company or by the failure of the Company to comply with
this Indenture.

     11.11 Distribution or Notice to Representative.

          Whenever a distribution is to be made or a notice given to holders of
Senior Indebtedness, the distribution may be made and the notice given to their
Representatives.

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     11.12 Rights of Trustee and Paying Agent.

          The Trustee or Paying Agent may continue to make payments on the
Securities until it receives written notice of facts that would cause a payment
of amounts due with respect to the Securities to violate this Article XI. Only
the Company or a Representative or a holder of an issue of Senior Indebtedness
that has no Representative may give the notice.

          The Trustee shall be entitled to conclusively rely on the delivery to it
of a written notice by a person representing himself to be a holder of Senior
Indebtedness (or a Representative on behalf of such holder) to establish that
such notice has been given by a holder of Senior Indebtedness or a
Representative on behalf of any such holder. In the event that the Trustee
determines in good faith that further evidence is required with respect to the
right of any person who is a holder of Senior Indebtedness to participate in
any payment or distribution pursuant to this Article XI, the Trustee may
request such person to furnish evidence to the reasonable satisfaction of the
Trustee as to the amount of Senior Indebtedness held by such person, the extent
to which such person is entitled to participate in such payment or distribution
and any other facts pertinent to the rights of such person under this Article
XI, and if such evidence is not furnished the Trustee may defer any payment to
such person pending judicial determination as to the right of such person to
receive such payment or until such time as the Trustee shall be otherwise
satisfied as to the right of such person to receive such payment.

          The Trustee in its individual or any other capacity may hold Senior
Indebtedness with the same rights it would have if it were not Trustee. Any
Agent may do the same with like rights.

          The Trustee shall not be deemed to owe any fiduciary duty to the holders
of Senior Indebtedness and shall not be liable to any such holder if it shall
mistakenly pay over or distribute to Securityholders or the Company or any
other person money or assets to which any holders of Senior Indebtedness shall
be entitled by virtue of this Article XI or otherwise.

     11.13 Officers’ Certificate.

          If there occurs an event referred to in Section 11.03 or 11.04, the
Company shall promptly give to the Trustee an Officers’ Certificate (on which
the Trustee may conclusively rely) identifying all holders of Senior
Indebtedness or their Representatives and the principal amount of Senior
Indebtedness then outstanding held by each such holder and stating the reasons
why such Officers’ Certificate is being delivered to the Trustee.

     11.14 Not to Prevent Events of Default.

          The failure to make any payment due with respect to the Securities by
reason of any provision of this Article XI shall not be construed as preventing
the occurrence of an Event of Default under Section 6.01.

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ARTICLE XII

MISCELLANEOUS

     12.01 Trust Indenture Act Controls.

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

     12.02 Notices.

          Any notice or communication by the Company or the Trustee to one or both
of the others is duly given if in writing and delivered in person, mailed by
first-class mail or by express delivery to the other parties’ addresses stated
in this Section 12.02. The Company or the Trustee by notice to the others may
designate additional or different addresses for subsequent notices or
communications.

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

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

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

          All notices or communications shall be in writing.

          The Company’s address is:

	 	 	 	WebMD Corporation

669 River Drive, Center 2

Elmwood Park, New Jersey 07407-1361

Facsimile: (201) 703-3401

Attention: Executive Vice President—Chief Financial
Officer

64

 

          The Trustee’s address is:

	 	 	 	The Bank of New York

101 Barclay Street, Floor 8 W

New York, NY 10286

Facsimile: (212) 815-5704

Attention: Corporate Trust Administration

     12.03 Communication by Holders with Other Holders.

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

     12.04 Certificate and Opinion as to Conditions Precedent.

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

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

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

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

     12.05 Statements Required in Certificate or Opinion.

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

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

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

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

65

 

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

     12.06 Rules by Trustee and Agents.

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

     12.07 Legal Holidays.

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

          A “business day” is a day other than a Legal Holiday.

     12.08 No Recourse Against Others.

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

     12.09 Duplicate Originals.

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

     12.10 Governing Law.

          The laws of the State of New York shall govern this Indenture and the
Securities.

     12.11 No Adverse Interpretation of Other Agreements.

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

66

 

     12.12 Successors.

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

     12.13 Separability.

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

     12.14 Table of Contents, Headings, etc.

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

67

 

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

	 	 	 	 	 
	 	 	WEBMD CORPORATION
	 	 	 	 	 
	 	 	
By:
	 	/s/ KIRK G. LAYMAN

Name: Kirk G. Layman

Title: Executive Vice President,

Administration and Acting Chief

Financial Officer
	 	 	 	 	 
	 	 	THE BANK OF NEW YORK
	 	 	 	 	 
	 	 	
By:
	 	/s/ MARIE E. TRIMBOLI

Name: Marie E. Trimboli

Title: Assistant Vice President

68

 

EXHIBIT A

[Face of Security]

WEBMD CORPORATION

[Certificate No.          ]

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

1.75% Convertible Subordinated Note due June 15, 2023

CUSIP No.           

     WEBMD CORPORATION, a Delaware corporation (herein called the “Company”),
for value received, hereby promises to pay to Cede & Co. or registered assigns,
the principal sum of                  Dollars ($                  ) on June 15,
2023, and to pay interest (including contingent interest, if any) and
liquidated damages, if any, thereon, as provided on the reverse hereof, until
the principal and any unpaid and accrued interest is paid or duly provided for.
The right to payment of the principal and all other amounts due with respect
hereto is subordinated to the rights of Senior Indebtedness as set forth in the
Indenture referred to on the reverse side hereof.

     Interest Payment Dates: June 15 and December 15, with the first payment
to be made on December 15, 2003.

     Record Dates: June 1 and December 1 immediately preceding each Interest
Payment Date.

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

     IN WITNESS WHEREOF, WEBMD CORPORATION has caused this instrument to be
duly signed.

	 	 	 	 	 
	 	 	
WEBMD CORPORATION
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

Name:
	 	 	 	 	Title:

	     Dated: 	 	 
	 	
	 

A-1

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Securities referred

to in the within-mentioned Indenture.

THE BANK OF NEW YORK, as Trustee

	 	 	 
	By:	 	 
	 	 	

      Authorized Signatory

	Dated: 	 	 
	 	
	 

A-2

 

[REVERSE OF SECURITY]

WEBMD CORPORATION

1.75% Convertible Subordinated Note due June 15, 2023

     1.     Interest. WebMD Corporation, a Delaware corporation (the “Company”),
promises to pay interest on the principal amount of this Security at the rate
per annum shown above. The Company will pay interest semiannually on June 15
and December 15 of each year, with the first payment to be made on December 15,
2003, to the Holders of record on the immediately preceding June 1 and December
1, respectively, whether or not such day is a business day. Interest on the
Securities will accrue on the principal amount from the most recent date to
which interest has been paid or provided for or, if no interest has been paid,
from June 25, 2003. Interest will be computed on the basis of a 360-day year
of twelve 30-day months. The Company will not be required to make any interest
payment on the Securities (including contingent interest, if any) or liquidated
damages, if any, on any day that is not a business day until the next
succeeding business day. Such interest payment made on the next succeeding
business day will be treated as though it were paid on the original due date
and no interest will accrue on the payment for the additional period of time.

     The Company shall pay contingent interest to the Holders during the period
from June 20, 2010 to December 14, 2010 and during any period from December 15
to June 14 and from June 15 to December 14 thereafter (each, a “Contingent
Interest Period”) if the average Trading Price per $1,000 principal amount of
Securities for the five Trading Days ending on the second Trading Day
immediately preceding the first day of the applicable Contingent Interest
Period equals 120% or more of the $1,000 principal amount of such Securities.
The amount of contingent interest payable per $1,000 principal amount of
Securities in respect of any Contingent Interest Period shall equal 0.25% per
annum of the average Trading Price of such Securities for the five Trading Days
ending on the second Trading Day immediately preceding such Contingent Interest
Period. Upon determination that Holders will be entitled to receive contingent
interest which may become payable during a Contingent Interest Period, on or
prior to the start of such Contingent Interest Period, the Company will provide
notice to the Trustee setting forth the amount of contingent interest per
$1,000 principal amount of Securities and disseminate a press release through
Dow Jones & Company, Inc. or Bloomberg Business News or other similarly broad
public medium that is customary for such press releases. The Company will pay
contingent interest, if any, in the same manner as it will pay interest as
described above.

     2.     Maturity. The Notes will mature on June 15, 2023.

     3.     Method of Payment. The Company will pay interest on the Securities
(except defaulted interest), including contingent interest, if any, and
liquidated damages, if any, to the persons who are registered Holders of
Securities at the close of business on the record date set forth on the face of
this Security immediately preceding the applicable interest payment date.
Liquidated damages, if any, would be paid in accordance with the terms and
subject to the conditions set forth in the Registration Rights Agreement.
Holders must surrender Securities to a Paying Agent to collect the principal,
Redemption Price or Repurchase Price of the Securities. The Company will pay
all amounts due with respect to the Securities in money of the United

A-3

 

States that at the time of payment is legal tender for payment of public
and private debts. However, the Company may pay interest (including contingent
interest, if any), liquidated damages, if any, the Redemption Price, Repurchase
Price, the premium, if any, and the principal amount at maturity, as the case
may be, by check or wire payable in such money; provided, however, that a
Holder holding Securities with an aggregate principal amount in excess of
$2,000,000 will be paid by wire transfer in immediately available funds at the
election of such Holder. The Company may mail an interest check to the
Holder’s registered address. Notwithstanding the foregoing, so long as this
Security is registered in the name of a Depositary or its nominee, all payments
hereon shall be made by wire transfer of immediately available funds to the
account of the Depositary or its nominee.

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

     5.     Indenture; Ranking. The Company issued the Securities under an
Indenture, dated as of June 25, 2003 (the “Indenture”), between the Company and
the Trustee. The terms of the Securities include those stated in the Indenture
and those made part of the Indenture by reference to the Trust Indenture Act of
1939 (15 U.S. Code §§ 77aaa-77bbbb) (the “Act”) as in effect on the date of the
Indenture. The Securities are subject to all such terms, and Securityholders
are referred to the Indenture and the Act for a statement of such terms. The
Securities are general unsecured subordinated obligations of the Company
limited to $300,000,000 aggregate principal amount ($350,000,000 if the Initial
Purchaser (as defined in the Indenture) has elected to exercise its option to
purchase an additional $50,000,000 of the Securities), except as otherwise
provided in Section 2.07 of the Indenture. The Securities rank equal in right
of payment to the Company’s 31⁄4% Convertible Subordinated Notes due 2007.
Terms used and not otherwise defined herein that are defined in the Indenture
have the meanings assigned to them in the Indenture.

     6.     Redemption by the Company. The Securities are not redeemable by the
Company prior to June 15, 2008. Beginning June 15, 2008 and prior to June 20,
2010, the Securities will be redeemable at the option of the Company, in whole
or in part, at the Redemption Price, plus accrued and unpaid interest
(including contingent interest, if any) and liquidated damages, if any, thereon
up to, but not including, the Redemption Date for such Securities if (1) the
Sale Price has exceeded 125% of the Conversion Price for at least 20 Trading
Days in any consecutive period of 30 Trading Days ending on the Trading Day
prior to the mailing of the notice of redemption described in Paragraph 7 below
and (2) the shelf registration statement covering resales of the Securities and
the Common Stock into which the Securities are convertible is effective and
available for use and is expected to remain effective and available for use for
the 30 days following such Redemption Date, unless registration is no longer
required pursuant to the terms of the Registration Rights Agreement.

     At any time on and after June 20, 2010 through the business day
immediately prior to the Maturity Date, the Securities will be redeemable, at
the option of the Company, in whole or in part, at the Redemption Price, plus
accrued and unpaid interest (including contingent interest, if

A-4

 

any) and liquidated damages, if any, thereon up to but not including the
Redemption Date for such Securities.

     7.     Notice of Redemption. Notice of redemption will be mailed at least 30
days but not more than 60 days before the Redemption Date to each Holder to be
redeemed at its registered address. Securities in denominations larger than
$1,000 principal amount may be redeemed in part but only in positive integral
multiples of $1,000 principal amount. On and after the Redemption Date
interest (including contingent interest, if any) and liquidated damages, if
any, cease to accrue on Securities or portions of them called for redemption.

     8.     Repurchase at Option of Holder. Each Holder shall have the right (the
“Repurchase Right”), at the Holder’s option, to require the Company to
repurchase in Cash in accordance with the provisions of this Paragraph 8 of
such Holder’s Securities, or a portion thereof which is $1,000 in principal
amount or any positive integral multiple thereof, on June 15, 2010, June 15,
2013 and June 15, 2018 (each, a “Repurchase Date”) at the Repurchase Price plus
accrued and unpaid interest (including contingent interest, if any) and
liquidated damages, if any, thereon, up to but not including the Repurchase
Date; provided that if the Repurchase Date is on or after an interest record
date but on or prior to the related interest payment date, interest (including
contingent interest, if any) and liquidated damages, if any, will be payable to
the Holders in whose names the Securities are registered at the close of
business on the relevant record date. To exercise a Repurchase Right, a Holder
shall deliver an Option of Holder to Elect Repurchase Notice as required by the
Indenture, together with the Securities subject thereto, at any time from the
opening of business on the date that is 30 business days prior to the
Repurchase Date until the close of business on the fifth business day prior to
the Repurchase Date, as set forth in the Indenture.

     9.     Repurchase Upon a Change in Control. Upon any Change in Control (as
defined below) with respect to the Company, each Holder shall have the right
(the “Change in Control Repurchase Right”), at the Holder’s option, subject to
the rights of the holders of Senior Indebtedness under Article XI of the
Indenture, to require the Company to repurchase all of such Holder’s
Securities, or a portion thereof which is $1,000 in principal amount or any
positive integral multiple thereof, on the date (the “Change in Control
Repurchase Date”) that is 30 business days after the date of the Change in
Control Notice (as defined below) at the Repurchase Price set forth in
Paragraph 8 above, plus accrued and unpaid interest (including contingent
interest, if any) and liquidated damages, if any, to, but not including, the
Change in Control Repurchase Date. At the option of the Company, the
Repurchase Price for Securities the Company is required to repurchase pursuant
to a Change in Control may be paid in Cash, Common Stock or a combination of
both, subject to certain conditions as set forth in the Indenture.

     Within 30 days after the occurrence of a Change in Control of the Company,
the Company shall mail to all Holders of record of the Securities a notice (the
“Change in Control Notice”) of the occurrence of such Change in Control and the
Change in Control Repurchase Right arising as a result thereof. The Company
shall deliver a copy of the Change in Control Notice to the Trustee and shall
disseminate a copy via a press release through Dow Jones & Company, Inc. or
Bloomberg Business News or other similarly broad public medium that is
customary for such press releases. To exercise the Change in Control
Repurchase Right, a

A-5

 

Holder of Securities must deliver on or before the close of business on
the 30th day after the date of the Change in Control Notice irrevocable written
notice to the Trustee, or to a Paying Agent designated by the Company for such
purpose in the Change in Control Notice, in the form of the Option of Holder to
Elect Repurchase Notice on the back of the Security, of the Holder’s exercise
of such right together with the Securities with respect to which the right is
being exercised, duly endorsed for transfer.

               A “Change in Control” of the Company shall be deemed to have occurred at
such time as:

		
	 	     (i) any person acquires beneficial ownership, directly or
indirectly, through a purchase, merger or other acquisition transaction
or series of transactions, of shares of the Company’s capital stock
entitling the person to exercise 50% or more of the total voting power of
all shares of the Company’s capital stock that are entitled to vote
generally in elections of directors, other than an acquisition by the
Company, any of its subsidiaries or any of its employee benefit plans; or
	 
	 	     (ii) the conveyance, sale transfer or lease by the Company of all or
substantially all of its assets to another person.
	 
	 	     However, a Change in Control will not be deemed to have occurred if:

	 	(X)	 	the Sale Price for any five Trading Days within
the period of ten consecutive Trading Days ending immediately
after the later of the Change in Control or the public
announcement of the Change in Control, in the case of a Change
in Control relating to an acquisition of capital stock, or the
period of ten consecutive Trading Days ending immediately
before the Change in Control, in the case of a Change in
Control relating to a merger, consolidation or asset sale,
equals or exceeds 105% of the Conversion Price of the
Securities in effect on each of those five Trading Days; or
	 
	 	(Y)	 	all or substantially all (but in no event less
than 90%) of the consideration, excluding Cash payments for
fractional shares of Common Stock and Cash payments made
pursuant to dissenters’ appraisal rights, in a merger or
consolidation otherwise constituting a Change in Control in
the preceding paragraph consists of shares of common stock,
depositary receipts or other certificates representing common
equity interests traded on a national securities exchange or
quoted on the NASDAQ National Market, or will be so traded or
quoted immediately following such merger or consolidation, and
as a result of such merger or consolidation the Securities
become convertible solely into such common stock, depositary
receipts or other certificates representing common equity
interests.

		
	 	     For purposes of this “Change in Control” definition:

	 	(1)	 	whether a person is a “beneficial owner” will be
determined in accordance with Rule 13d-3 under the Exchange
Act; and

A-6

 

	 	(2)	 	a “person” includes any syndicate or group that
would be deemed to be a person under Section 13(d)(3) of the
Exchange Act.

     10.     Conversion. Subject to the provisions of Article X of the Indenture,
a Holder of a Security may convert such Security into shares of Common Stock of
the Company if any of the conditions specified in paragraphs (a) through (f) of
Section 10.01 of the Indenture is satisfied. The initial conversion rate is
64.9773 shares of Common Stock per $1,000 principal amount of Securities, or an
effective initial Conversion Price of approximately $15.39 per share, subject
to adjustment in the event of certain circumstances as specified in the
Indenture. The Company will deliver Cash in lieu of any fractional share.

     To convert a Security, a Holder must (1) complete and sign the Conversion
Notice, with appropriate signature guarantee, on the back of the Security, (2)
surrender the Security to a Conversion Agent, (3) furnish appropriate
endorsements and transfer documents if required by the Registrar or Conversion
Agent, (4) if required by Article X of the Indenture, pay the amount of
interest (including contingent interest, if any) and liquidated damages, if
any, the Holder may be paid and (5) pay any transfer or similar tax if
required. A Holder may convert a portion of a Security if the portion is
$1,000 principal amount or a positive integral multiple of $1,000 principal
amount.

     Any shares issued upon conversion of a Security shall bear the Private
Placement Legend until after the second anniversary of the later of (i) the
issue date for the Securities, (ii) the last date on which the Company or any
Affiliate of the Company was the owner of such shares or the Security (or any
predecessor security) from which such shares were converted (or such shorter
period of time as permitted by Rule 144(k) under the Securities Act or any
successor provision thereunder) (or such longer period of time as may be
required under the Securities Act or applicable state securities laws in the
Opinion of Counsel for the Company, unless otherwise agreed by the Company and
the Holder thereof).

     11.     Subordination. The Securities are subordinated in right of payment,
in the manner and to the extent set forth in Article XI of the Indenture, to
the prior payment in full of all Senior Indebtedness. Each Holder by accepting
a Security agrees to such subordination and authorizes the Trustee to give it
effect.

     12.      Denominations, Transfer, Exchange. The Securities are in registered
form without coupons in denominations of $1,000 principal amount and positive
integral multiples of $1,000 principal amount. The transfer of Securities may
be registered and Securities may be exchanged as provided in the Indenture.
The Registrar may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents. No service charge shall be made for any
such registration of transfer or exchange, but the Company may require payment
of a sum sufficient to cover any tax or other governmental charge payable in
connection therewith. The Registrar need not exchange or register the transfer
of any Security selected for redemption in whole or in part, except the
unredeemed portion of Securities to be redeemed in part. Also, it need not
exchange or register the transfer of any Securities for a period of 15 days
before the mailing of a notice of redemption of the Securities selected to be
redeemed and in certain other circumstances provided in the Indenture.

A-7

 

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

     14.     Merger or Consolidation. The Company shall not consolidate with or
merge with or into, or convey, transfer or lease all or substantially all of
its properties and assets to, another person unless such other person is a
corporation organized under the laws of the United States, any State thereof or
the District of Columbia or a corporation or comparable legal entity organized
under the laws of a foreign jurisdiction and whose equity securities are listed
on a national securities exchange in the United States or authorized for
quotation on the NASDAQ National Market prior to or upon giving effect to the
transaction (provided, however, that in the case of a transaction where the
surviving entity is organized under the laws of a foreign jurisdiction, the
Company may not consummate the transaction without first (i) making provision
for the satisfaction of its obligations to repurchase the Securities following
a Change in Control, if any, (ii) amending the terms of the Securities to
provide that, in the event the Company is required under the laws of such
foreign jurisdiction (or any political subdivision thereof) to withhold or
deduct amounts in respect of taxes from payments made to Securityholders on the
Securities, the Company will pay, subject to certain standard exceptions, such
additional amounts to the holders as may be necessary so that each
Securityholder will receive the same amounts it would have received had no such
withholding or deduction been required, and (iii) obtaining an opinion of tax
counsel experienced in such matters to the effect that, under then existing
United States federal income tax laws, there would be no material adverse tax
consequences to Securityholders of the Securities resulting from such
transaction); such person assumes by supplemental indenture all the obligations
of the Company, under the Securities and this Indenture; and immediately after
giving effect to the transaction, no Default or Event of Default shall exist.

     15.     Amendments, Supplements and Waivers. Subject to certain exceptions,
the Indenture or the Securities may be amended or supplemented with the consent
of the Holders of a majority in aggregate principal amount of the Securities
then outstanding, and any existing Default or Event of Default may be waived
with the consent of the Holders of a majority in aggregate principal amount of
the Securities then outstanding. Without notice to or the consent of any
Securityholder, the Indenture or the Securities may be amended or supplemented,
with the consent of the Trustee, to cure any ambiguity, inconsistency or other
defect in the Indenture; to comply with Sections 5.01 and 10.12 of the
Indenture; to evidence a successor to the Company and the assumption by that
successor of the Company’s obligations under the Indenture and the Securities;
to evidence and provide for the acceptance of the appointment under the
Indenture of a successor Trustee; to make any changes or modifications to the
Indenture necessary in connection with the registration of the Securities under
the Securities Act and the qualification of the Indenture under the TIA; to
secure the obligations of the Company in respect of the Securities; or to add
to covenants of the Company described in the Indenture for the benefit of
Securityholders or to surrender any right or power conferred upon the Company.

     16.     Defaults and Remedies. An Event of Default includes the occurrence of
those events set forth in Section 6.01 of the Indenture. If any Event of
Default occurs and is continuing, the Trustee or the Holders of at least 25% in
aggregate principal amount of the Securities then outstanding may declare all
the Securities to be due and payable immediately, except as provided in the
Indenture. If an Event of Default specified in Section 6.01(vi) or (vii)

A-8

 

of the Indenture with respect to the Company occurs, the principal of and
accrued interest on all the Securities shall ipso facto become and be
immediately due and payable without any declaration or other act on the part of
the Trustee or any Securityholder. The Company must furnish an annual
compliance certificate to the Trustee.

     17.     Registration Rights. The Holders are entitled to registration rights
as set forth in the Registration Rights Agreement (as defined in the
Indenture). The Holders shall be entitled to receive liquidated damages in
certain circumstances, all as set forth in the Registration Rights Agreement.

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

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

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

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

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

	 	 	 	WebMD Corporation

669 River Drive, Center 2

Elmwood Park, New Jersey 07407-1361

Attention: Executive Vice President—Chief Financial Officer

A-9

 

[FORM OF ASSIGNMENT]

I or we assign to

PLEASE INSERT SOCIAL SECURITY OR

OTHER IDENTIFYING NUMBER

(please print or type name and address)

the within Security and all rights thereunder, and hereby irrevocably constitutes and appoints

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

	 	 	 	 
	Dated: 	 
		

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

	Signature Guarantee: 	 	 
	 	
	 

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

A-10

 

[Check One]

(1)       to the Company or any subsidiary thereof; or

(2)       pursuant to and in compliance with Rule 144A under the Securities Act
of 1933, as amended; or

(3)       pursuant to the exemption from registration provided by Rule 144 under
the Securities Act of 1933, as amended; or

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

and unless the box below is checked, the undersigned confirms that such
Security is not being transferred to an “affiliate” of the Company as defined
in Rule 144 under the Securities Act of 1933, as amended (an “Affiliate”):

     o     The transferee is an Affiliate of the Company. (If the Security is
transferred to an Affiliate, the restrictive legend must remain on the Security
for two years following the date of the transfer).

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

               If none of the foregoing items are checked, the Trustee or Registrar shall
not be obligated to register this Security in the name of any person other than
the Holder hereof unless and until the conditions to any such transfer of
registration set forth herein and in Section 2.16 of the Indenture shall have
been satisfied.

	 	 	 	 	 	 
	Dated:	 		
Signed: 	 	 
	 	
		 	

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

	Signature Guarantee: 	 	 
	 	

A-11

 

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

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

	 	 	 	 
	Dated:

	 	 	

NOTICE: To be executed by an executive officer

A-12

 

CONVERSION NOTICE

To convert this Security into Common Stock, check the box: o

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

$ __________________

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

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

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

	 	 	 
	Dated:
	 	
Signature(s):

	 	 	 
	 	 	

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

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

A-13

 

OPTION OF HOLDER TO ELECT REPURCHASE NOTICE

Certificate No. of Security: ___________

     If you want to elect to have this Security purchased by the Company
pursuant to Section 3.08 of the Indenture, check the box: o

     If you want to elect to have this Security purchased by the Company
pursuant to Section 3.09 of the Indenture, check the box: o

     If you want to elect to have only part of this Security purchased by the
Company pursuant to Section 3.08 or Section 3.09 of the Indenture, as the case
may be, state the principal amount:

$ __________________________________

(in an integral multiple of $1,000)

	 	 	 
	Date:
	 	
Signature(s):

	 	 	 
	 	 	

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

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

A-14

 

SCHEDULE A

SCHEDULE OF EXCHANGES OF INTERESTS
IN THE GLOBAL SECURITY1

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

	 	 	 
	 	 	 	 	 	Amount of	 	 	Principal amount
	 	 	Amount of	 	 	increase in	 	 	of this Global	 	 	Signature or
	 	 	decrease in	 	 	Principal	 	 	Security	 	 	authorized
	 	 	Principal amount	 	 	amount of this	 	 	following such	 	 	signatory of
	 	 	of this Global	 	 	Global	 	 	decrease (or	 	 	Trustee or Note
	Date of Exchange	 	Security	 	 	Security	 	 	increase)	 	 	Custodian

	1	 	 This is included in Global Securities only.

1

 

EXHIBIT B-1

FORM OF PRIVATE PLACEMENT LEGEND

THIS SECURITY AND ANY COMMON STOCK ISSUABLE UPON THE CONVERSION OF THIS
SECURITY HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN
THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY
MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE
SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.

THIS SECURITY AND ANY COMMON STOCK ISSUABLE UPON THE CONVERSION OF THIS
SECURITY MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT
(A)(1) TO A PERSON WHO THE TRANSFEROR REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT
ACQUIRING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (2) PURSUANT TO
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144
THEREUNDER (IF AVAILABLE) OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT AND (B) IN ACCORDANCE WITH ALL APPLICABLE
SECURITIES LAWS OF THE STATES OF THE UNITED STATES AND OTHER JURISDICTIONS.

THIS SECURITY, ANY SHARES OF COMMON STOCK ISSUABLE UPON ITS CONVERSION AND ANY
RELATED DOCUMENTATION MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME TO
MODIFY THE RESTRICTIONS ON RESALES AND OTHER TRANSFERS OF THIS SECURITY AND ANY
SUCH SHARES TO REFLECT ANY CHANGE IN APPLICABLE LAW OR REGULATION (OR THE
INTERPRETATION THEREOF) OR IN PRACTICES RELATING TO THE RESALE OR TRANSFER OF
RESTRICTED SECURITIES GENERALLY. THE HOLDER OF THIS SECURITY AND SUCH SHARES
SHALL BE DEEMED BY THE ACCEPTANCE OF THIS SECURITY AND ANY SUCH SHARES TO HAVE
AGREED TO ANY SUCH AMENDMENT OR SUPPLEMENT.

FOR PURPOSES OF SECTIONS 1273 AND 1275 OF THE INTERNAL REVENUE CODE OF 1986,AS
AMENDED, THIS SECURITY IS A CONTINGENT PAYMENT DEBT INSTRUMENT AND WILL ACCRUE
ORIGINAL ISSUE DISCOUNT AT THE ISSUER’S “COMPARABLE YIELD” FOR U.S. FEDERAL
INCOME TAX PURPOSES. PURSUANT TO SECTION 4.08 OF THE INDENTURE, THE COMPANY
AGREES, AND BY ACCEPTANCE OF A BENEFICIAL OWNERSHIP INTEREST IN THE SECURITY,
EACH BENEFICIAL HOLDER OF THE SECURITIES WILL BE DEEMED TO HAVE AGREED, FOR
U.S. FEDERAL INCOME TAX PURPOSES, (I) TO TREAT THE SECURITIES AS INDEBTEDNESS
THAT IS SUBJECT TO SECTION 1.1275-4 OF THE UNITED STATES TREASURY REGULATIONS
(THE “CONTINGENT PAYMENT REGULATIONS”), AND, FOR PURPOSES OF THE CONTINGENT
PAYMENT REGULATIONS, TO TREAT THE FAIR MARKET VALUE OF COMMON STOCK RECEIVED BY
A BENEFICIAL HOLDER

B-1-1

 

UPON ANY CONVERSION OF THE SECURITIES AS A CONTINGENT
PAYMENT AND (II) TO BE
BOUND BY THE COMPANY’S DETERMINATION OF THE “COMPARABLE YIELD” AND “PROJECTED
PAYMENT SCHEDULE,” WITHIN THE MEANING OF THE CONTINGENT PAYMENT REGULATIONS,
WITH RESPECT TO THE NOTES. THE COMPANY’S DETERMINATION OF THE COMPARABLE YIELD
IS 8% PER ANNUM, COMPOUNDED SEMIANNUALLY. THE PROJECTED PAYMENT SCHEDULE,
DETERMINED BY THE COMPANY, IS ATTACHED TO THE INDENTURE AS EXHIBIT E. YOU MAY
OBTAIN THE ISSUE DATE, COMPARABLE YIELD AND PROJECTED PAYMENT SCHEDULE FOR THIS
SECURITY BY TELEPHONING WEBMD CORPORATION’S INVESTOR RELATIONS DEPARTMENT AT
(201) 414-2002 OR SUBMITTING A WRITTEN REQUEST FOR SUCH INFORMATION TO: WEBMD
CORPORATION, 669 RIVER DRIVE, CENTER 2, ELMWOOD PARK, NEW JERSEY 07407, ATTN:
INVESTOR RELATIONS.

B-1-2

 

EXHIBIT B-2

FORM OF LEGEND FOR GLOBAL SECURITY

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

	 	 	 	THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR
A NOMINEE OF A DEPOSITARY OR A SUCCESSOR DEPOSITARY. THIS SECURITY IS
NOT EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER
THAN THE DEPOSITARY OR ITS NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS SECURITY (OTHER THAN
A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF
THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR
ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.
	 
	 	 	 	UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE
COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.
	 
	 	 	 	TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE,
BUT NOT IN PART, TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR
SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL
SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
RESTRICTIONS SET FORTH IN SECTION 2.16 OF THE INDENTURE.
	 
	 	 	 	FOR PURPOSES OF SECTIONS 1273 AND 1275 OF THE INTERNAL REVENUE CODE OF
1986,AS AMENDED, THIS SECURITY IS A CONTINGENT PAYMENT DEBT INSTRUMENT
AND WILL ACCRUE ORIGINAL ISSUE DISCOUNT AT THE ISSUER’S “COMPARABLE
YIELD” FOR U.S. FEDERAL INCOME TAX PURPOSES. PURSUANT TO SECTION 4.08 OF
THE INDENTURE, THE COMPANY AGREES, AND BY ACCEPTANCE OF A BENEFICIAL
OWNERSHIP INTEREST IN THE SECURITY, EACH BENEFICIAL HOLDER OF THE
SECURITIES WILL BE DEEMED TO HAVE AGREED, FOR U.S. FEDERAL

B-2-1

 

	 	 	 	INCOME TAX PURPOSES, (I) TO TREAT THE SECURITIES AS INDEBTEDNESS THAT IS
SUBJECT TO SECTION 1.1275-4 OF THE UNITED STATES TREASURY REGULATIONS
(THE “CONTINGENT PAYMENT REGULATIONS”), AND, FOR PURPOSES OF THE
CONTINGENT PAYMENT REGULATIONS, TO TREAT THE FAIR MARKET VALUE OF COMMON
STOCK RECEIVED BY A BENEFICIAL HOLDER UPON ANY CONVERSION OF THE
SECURITIES AS A CONTINGENT PAYMENT AND (II) TO BE BOUND BY THE COMPANY’S
DETERMINATION OF THE “COMPARABLE YIELD” AND “PROJECTED PAYMENT SCHEDULE,”
WITHIN THE MEANING OF THE CONTINGENT PAYMENT REGULATIONS, WITH RESPECT TO
THE NOTES. THE COMPANY’S DETERMINATION OF THE COMPARABLE YIELD IS 8% PER
ANNUM, COMPOUNDED SEMIANNUALLY. THE PROJECTED PAYMENT SCHEDULE,
DETERMINED BY THE COMPANY, IS ATTACHED TO THE INDENTURE AS EXHIBIT E.
YOU MAY OBTAIN THE ISSUE DATE, COMPARABLE YIELD AND PROJECTED PAYMENT
SCHEDULE FOR THIS SECURITY BY TELEPHONING WEBMD CORPORATION’S INVESTOR
RELATIONS DEPARTMENT AT (201) 414-2002 OR SUBMITTING A WRITTEN REQUEST
FOR SUCH INFORMATION TO: WEBMD CORPORATION, 669 RIVER DRIVE, CENTER 2,
ELMWOOD PARK, NEW JERSEY 07407, ATTN: INVESTOR RELATIONS.

B-2-2

 

EXHIBIT C

Form of Notice of Transfer Pursuant to Registration Statement

WebMD Corporation

669 River Drive, Center 2

Elmwood Park, New Jersey 07407-1361

Attention: Executive Vice President - Chief Financial Officer

The Bank of New York

101 Barclay Street, Floor 8 W

New York, NY 10286

Fax: (212) 815-5704

Attention: Corporate Trust Administration

	 	 	 
	Re:	 	
WEBMD CORPORATION (the “Company”)

1.75% Convertible Subordinated Notes due June 15, 2023 (the
“Securities”)

Ladies and Gentlemen:

     Please be advised that                  has transferred $                  aggregate
principal amount of the Securities or                  shares of the Common Stock, $0.001 par value per share, of the Company issuable on conversion
of the Securities (“Stock”) pursuant to an effective Shelf Registration
Statement on Form S-3 (File No. 333-
________________).

     We hereby certify that the prospectus delivery requirements, if any, of
the Securities Act of 1933 as amended, have been satisfied with respect to the
transfer described above and that the above-named beneficial owner of the
Securities or Stock is named as a “Selling Securityholder” in the Prospectus
dated                  , or in amendments or supplements thereto, and that the
aggregate principal amount of the Securities, or number of shares of Stock
transferred are [a portion of] the Securities or Stock listed in such
Prospectus, as amended or supplemented, opposite such owner’s name.

	 	 	 
	 	 	
Very truly yours,

(Name)

C-1

 

EXHIBIT D

Form of Opinion of Counsel in Connection with Registration of Securities

The Bank of New York

101 Barclay Street, Floor 8 W

New York, NY 10286

Fax: (212) 815-5704

Attention: Corporate Trust Administration

	 	 	 
	Re:	 	
WEBMD CORPORATION (the “Company”)

1.75% Convertible Subordinated Notes due June 15, 2023 (the
“Securities”)

     Ladies and Gentlemen:

     Reference is made to the Securities issued pursuant to a certain
indenture, dated as of June 25, 2003, by and between the Company and The Bank
of New York, as trustee (the “Trustee”). The Company issued $300,000,000
principal amount of Securities on June 25, 2003 [and an additional $50,000,000
on             , 2003 [IF THE INITIAL PURCHASER’S OVERALLOTMENT OPTION IS
EXERCISED]] in transactions exempt from registration under the Securities Act
of 1933, as amended (the “Securities Act”). The Company has filed with the
Securities and Exchange Commission (the “SEC”) a registration statement on Form
S-3 (File No. 333-_____________________) (the “Registration Statement”) relating to
the registration under the Securities Act of $                          principal amount
of the Securities and the shares of Common Stock of the Company (the “Shares”)
issuable upon conversion of the Securities being registered. The Registration
Statement was declared effective by order of the SEC dated [                          ].

     We have acted as counsel for the Company in connection with the issuance
of the Securities and the preparation and filing of the Registration Statement
and are familiar with the Securities, the Indenture, the Registration
Statement, the above-mentioned SEC order and such other documents as are
necessary to render this opinion.

     Based on the foregoing, it is our opinion that (1) the Registration
Statement has become effective under the Securities Act and, to our knowledge,
no stop order suspending the effectiveness of the Registration Statement has
been issued, (2) assuming that the Securities covered by the Registration
Statement and the Shares issuable upon conversion of such Securities are sold
by a relevant Holder specified in the Registration Statement in a manner
specified in the Registration Statement, such sale of the Securities and Shares
issuable upon conversion of the Securities will have been duly registered under
the Securities Act and (3) the Indenture has been duly qualified under the
Trust Indenture Act of 1939, as amended.

	 	 	 
	 	 	
Yours truly,

D-1

 

EXHIBIT E

Projected Payment Schedule

Convertible Subordinated Notes due June 15, 2023

(per $1000 principal amount)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Projected	 	PV Projected
	 	 	 	 	Payment	 	Projected	 	Contingent	 	Contingent
	Period	 	Dates	 	Payments	 	Payments	 	Payments
	
	 	
	 	
	 	
	 	

	 	1
	 	 	15 Dec 03	 	$	8.31	 	 	$	0.00	 	 	$	0.00	 
	 	2
	 	 	15 Jun 04	 	$	8.75	 	 	$	0.00	 	 	$	0.00	 
	 	3
	 	 	15 Dec 04	 	$	8.75	 	 	$	0.00	 	 	$	0.00	 
	 	4
	 	 	15 Jun 05	 	$	8.75	 	 	$	0.00	 	 	$	0.00	 
	 	5
	 	 	15 Dec 05	 	$	8.75	 	 	$	0.00	 	 	$	0.00	 
	 	6
	 	 	15 Jun 06	 	$	8.75	 	 	$	0.00	 	 	$	0.00	 
	 	7
	 	 	15 Dec 06	 	$	8.75	 	 	$	0.00	 	 	$	0.00	 
	 	8
	 	 	15 Jun 07	 	$	8.75	 	 	$	0.00	 	 	$	0.00	 
	 	9
	 	 	15 Dec 07	 	$	8.75	 	 	$	0.00	 	 	$	0.00	 
	 	10
	 	 	15 Jun 08	 	$	8.75	 	 	$	0.00	 	 	$	0.00	 
	 	11
	 	 	15 Dec 08	 	$	8.75	 	 	$	0.00	 	 	$	0.00	 
	 	12
	 	 	15 Jun 09	 	$	8.75	 	 	$	0.00	 	 	$	0.00	 
	 	13
	 	 	15 Dec 09	 	$	8.75	 	 	$	0.00	 	 	$	0.00	 
	 	14
	 	 	15 Jun 10	 	$	8.75	 	 	$	0.00	 	 	$	0.00	 
	 	15
	 	 	15 Dec 10	 	$	10.40	 	 	$	1.65	 	 	$	0.92	 
	 	16
	 	 	15 Jun 11	 	$	10.48	 	 	$	1.73	 	 	$	0.92	 
	 	17
	 	 	15 Dec 11	 	$	10.55	 	 	$	1.80	 	 	$	0.93	 
	 	18
	 	 	15 Jun 12	 	$	10.62	 	 	$	1.87	 	 	$	0.93	 
	 	19
	 	 	15 Dec 12	 	$	10.70	 	 	$	1.95	 	 	$	0.93	 
	 	20
	 	 	15 Jun 13	 	$	10.79	 	 	$	2.04	 	 	$	0.93	 
	 	21
	 	 	15 Dec 13	 	$	10.87	 	 	$	2.12	 	 	$	0.93	 
	 	22
	 	 	15 Jun 14	 	$	10.96	 	 	$	2.21	 	 	$	0.94	 
	 	23
	 	 	15 Dec 14	 	$	11.06	 	 	$	2.31	 	 	$	0.94	 
	 	24
	 	 	15 Jun 15	 	$	11.16	 	 	$	2.41	 	 	$	0.94	 
	 	25
	 	 	15 Dec 15	 	$	11.26	 	 	$	2.51	 	 	$	0.94	 
	 	26
	 	 	15 Jun 16	 	$	11.37	 	 	$	2.62	 	 	$	0.95	 
	 	27
	 	 	15 Dec 16	 	$	11.48	 	 	$	2.73	 	 	$	0.95	 
	 	28
	 	 	15 Jun 17	 	$	11.59	 	 	$	2.84	 	 	$	0.95	 

E-1

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Projected	 	PV Projected
	 	 	 	 	Payment	 	Projected	 	Contingent	 	Contingent
	Period	 	Dates	 	Payments	 	Payments	 	Payments
	
	 	
	 	
	 	
	 	

	 	29
	 	 	15 Dec 17	 	$	11.71	 	 	$	2.96	 	 	$	0.95	 
	 	30
	 	 	15 Jun 18	 	$	11.84	 	 	$	3.09	 	 	$	0.95	 
	 	31
	 	 	15 Dec 18	 	$	11.97	 	 	$	3.22	 	 	$	0.96	 
	 	32
	 	 	15 Jun 19	 	$	12.11	 	 	$	3.36	 	 	$	0.96	 
	 	33
	 	 	15 Dec 19	 	$	12.25	 	 	$	3.50	 	 	$	0.96	 
	 	34
	 	 	15 Jun 20	 	$	12.40	 	 	$	3.65	 	 	$	0.96	 
	 	35
	 	 	15 Dec 20	 	$	12.55	 	 	$	3.80	 	 	$	0.97	 
	 	36
	 	 	15 Jun 21	 	$	12.72	 	 	$	3.97	 	 	$	0.97	 
	 	37
	 	 	15 Dec 21	 	$	12.88	 	 	$	4.13	 	 	$	0.97	 
	 	38
	 	 	15 Jun 22	 	$	13.06	 	 	$	4.31	 	 	$	0.97	 
	 	39
	 	 	15 Dec 22	 	$	13.24	 	 	$	4.49	 	 	$	0.98	 
	 	40
	 	 	15 Jun 23	 	$	3,725.78	 	 	$	4.68	 	 	$	0.98	 

E-2EX-4.2 REGISTRATION RIGHTS AGREEMENT JUNE 25, 2003

 

Exhibit 4.2

WebMD Corporation

1.75% Convertible Subordinated Notes due June 15, 2023

Registration Rights Agreement

June 25, 2003

Banc of America Securities LLC

9 West 57th Street

New York, New York 10019

Ladies and Gentlemen:

     WebMD Corporation, a Delaware corporation (the “Company”), proposes to
issue and sell to the initial purchaser named in the purchase agreement (the
“Purchaser”), upon the terms set forth in such purchase agreement dated June
20, 2003 (the “Purchase Agreement”), its 1.75% Convertible Subordinated Notes
due June 15, 2023 (the “Securities”). As an inducement to the Purchaser to
enter into the Purchase Agreement and in satisfaction of a condition to the
obligations of the Purchaser thereunder, the Company agrees with the Purchaser
for the benefit of Holders (as defined herein) from time to time of the
Registrable Securities (as defined herein) as follows:

     1.     Definitions.

     (a)  Capitalized terms used herein without definition shall have the
meanings ascribed to them in the Purchase Agreement. As used in this
Agreement, the following defined terms shall have the following meanings:

     “Act” or “Securities Act” means the United States Securities Act of 1933,
as amended.

     “Affiliate” of any specified person means any other person which, directly
or indirectly, is in control of, is controlled by, or is under common control
with such specified person. For purposes of this definition, control of a
person means the power, direct or indirect, to direct or cause the direction of
the management and policies of such person whether by contract or otherwise;
and the terms “controlling” and “controlled” have meanings correlative to the
foregoing.

     “Applicable Amount” means, (i) with respect to the Securities, the
principal amount of the Securities and, (ii) with respect to shares of Common
Stock issued upon conversion of the

 

 

Securities pursuant to the Indenture, the principal amount of Securities
that would then be convertible into such number of shares.

     “Commission” means the United States Securities and Exchange Commission,
or any other federal agency at the time administering the Exchange Act or the Securities Act, whichever is the relevant statute for the particular purpose.

     “Common Stock” means the Company’s common stock, par value $.0001 per
share.

     “DTC” means The Depository Trust Company.

     “Effectiveness Period” has the meaning assigned thereto in Section 2(b)(i)
hereof.

     “Effective Time” means the time at which the Commission declares any Shelf
Registration Statement effective or at which any Shelf Registration Statement
otherwise becomes effective.

     “Electing Holder” has the meaning assigned thereto in Section 3(a)(iii)
hereof.

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

     “Holder” means any person that is the record owner of Registrable
Securities (and includes any person that has a beneficial interest in any
Registrable Security in book-entry form).

     “Indenture” means the Indenture, dated as of June 25, 2003, between the
Company and The Bank of New York, and as amended and supplemented from time to
time in accordance with its terms.

     “Issue Date” means the first date of original issuance of the Securities.

     “Liquidated Damages” has the meaning assigned thereto in Section 7(a)
hereof.

     “Notice and Questionnaire” means a Notice of Registration Statement and
Selling Securityholder Questionnaire substantially in the form of Appendix A
hereto.

     The term “person” means an individual, partnership, corporation, trust or
unincorporated organization, or a government or agency or political subdivision
thereof.

     “Prospectus” means the prospectus (including, without limitation, any
preliminary prospectus, any final prospectus and any prospectus that discloses
information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 430A under the Act) included in
any Shelf Registration Statement, as amended or supplemented by any prospectus
supplement with respect to the terms of the offering of any portion of the
Registrable Securities covered by any Shelf Registration Statement and by all
other amendments and supplements to such prospectus, including all material
incorporated by reference in such prospectus and all documents filed after the
date of such prospectus by the Company under the Exchange Act and incorporated
by reference therein.

2

 

     “Registrable Securities” means all or any portion of the Securities issued
from time to time under the Indenture in registered form and the shares of
Common Stock issuable upon conversion of such Securities; provided, however,
that a security ceases to be a Registrable Security when it is no longer a
Restricted Security.

     “Registration Default” has the meaning assigned thereto in Section 7(a)
hereof.

     “Restricted Security” means any Security until such Security has been
converted into the Common Stock and, at all times the Common Stock and any securities into or for which such Common Stock has been converted, and any security issued with respect thereto upon any stock dividend, split or similar
event until, in the case of any such security, the earliest of (x) the date on which such security has been effectively registered under the Securities Act
and disposed of, whether or not in accordance with a Shelf Registration Statement, (y) the date that is two years after the later of (1) the original
issuance of the Securities and (2) the last date that the Company or any of its Affiliates was the owner of such Securities (or any predecessor thereto), or
such shorter period of time as permitted by Rule 144(k) under the Securities Act or any successor provisions thereunder or (z) its sale to the public
pursuant to Rule 144 under the Securities Act.

     “Rules and Regulations” means the published rules and regulations of the
Commission promulgated under the Securities Act or the Exchange Act, as in
effect at any relevant time.

     “Shelf Registration” means a registration effected pursuant to Section 2
hereof.

     “Shelf Registration Statement” means a “shelf” registration statement
filed under the Securities Act providing for the registration of, and the sale
on a continuous or delayed basis by the Holders of, all of the Registrable
Securities pursuant to Rule 415 under the Securities Act and/or any similar
rule that may be adopted by the Commission, filed by the Company pursuant to
the provisions of Section 2 of this Agreement, including the Prospectus
contained therein, any amendments and supplements to such registration
statement, including post-effective amendments, and all exhibits and all
material incorporated by reference in such registration statement, and any
additional “shelf” registration statements filed under the Securities Act to
permit the registration and sale of Registrable Securities pursuant to Section
3(a)(ii) hereof.

     “Suspension Period” has the meaning assigned thereto in Section 2(c)
hereof.

     “Trust Indenture Act” means the Trust Indenture Act of 1939, or any
successor thereto, and the rules, regulations and forms promulgated thereunder,
as the same shall be amended from time to time.

     The term “underwriter” means any underwriter, or any person deemed to be
an underwriter pursuant to the Rules and Regulations, of Registrable Securities
in connection with an offering thereof under a Shelf Registration Statement.

     (b)  Wherever there is a reference in this Agreement to a percentage of the
“principal amounts” of Registrable Securities or to a percentage of Registrable
Securities, Common Stock shall be treated as representing the principal amount
of Securities that would have been

3

 

surrendered for conversion or exchange as of the date of determination in order
to receive such number of shares of Common Stock.

     2.     Shelf Registration.

     (a)  The Company shall, no later than 90 calendar days following the Issue
Date, file with the Commission a Shelf Registration Statement relating to the
offer and sale of the Registrable Securities by the Holders from time to time
in accordance with the methods of distribution elected by such Holders and,
thereafter, shall use its reasonable best efforts to cause such initial Shelf
Registration Statement to be declared effective under the Act no later than 180
calendar days following the Issue Date; provided, however, that the Company
may, upon written notice to all Holders, postpone having the initial Shelf
Registration Statement declared effective for a reasonable period not to exceed
90 days if the Company possesses material non-public information, the
disclosure of which would have a material adverse effect on the Company and its
subsidiaries taken as a whole; provided, further, however, that no Holder shall
be entitled to be named as a selling securityholder in any Shelf Registration
Statement as of the date it is declared effective or to use the Prospectus
forming a part thereof for offers and resales of Registrable Securities unless such Holder is an Electing Holder.

     (b)  The Company shall use its reasonable best efforts:

		
	 	     (i) to keep any Shelf Registration Statement effective, supplemented
and amended as required by the provisions of Section 3(j) hereto, in
order to permit the Prospectus forming a part thereof to be usable by
Holders until the earliest of (1) the sale of all Registrable Securities
registered under such Shelf Registration Statement; (2) the expiration of
the period referred to in Rule 144(k) of the Act with respect to all
Registrable Securities held by Persons that are not Affiliates of the
Company; (3) two years from the last date of original issuance of any
Registrable Securities; and (4) the date when there are no Registrable
Securities outstanding (such period being referred to herein as the
“Effectiveness Period”); and

		
	 	     (ii) after the Effective Time of the initial Shelf Registration
Statement, as promptly as practicable but in any event within ten
Business Days or, if the Company is required to file with the Commission
a new Shelf Registration Statement, 30 calendar days, of the receipt of a
completed Notice and Questionnaire from any Holder of Registrable
Securities that is not then an Electing Holder, to take any action
reasonably necessary to enable such Holder to use the Prospectus forming
a part thereof for resales of Registrable Securities, including, without
limitation, any action necessary to identify such Holder as a selling
securityholder in a Shelf Registration Statement; provided, however, that
nothing in this subparagraph shall relieve such Holder of the obligation
to return a completed and signed Notice and Questionnaire to the Company
in accordance with Section 3(a)(ii) hereof.

The Company shall be deemed not to have used its reasonable best efforts to
keep any Shelf Registration Statement effective during the Effectiveness Period
if the Company voluntarily takes

4

 

any action that would result in Holders of Registrable Securities covered
thereby not being able to offer and sell any of such Registrable Securities
during that period, unless such action is (A) required by applicable law and
the Company thereafter promptly complies with the requirements of paragraph
3(j) below or (B) permitted pursuant to Section 2(c) below.

     (c)  The Company may suspend the use of any Prospectus for a period not to
exceed 45 days in any 90-day period or an aggregate of 90 days in any 12-month
period, during the period beginning on the issue date and ending on or prior to
the second anniversary of the last issue date of any Securities (each, a
“Suspension Period”) if the Board of Directors of the Company shall have
determined in good faith that because of valid business reasons (not including
avoidance of the Company’s obligations hereunder), including the acquisition or
divestiture of assets, pending corporate developments and similar events or
because of filings with the Commission, it is in the best interests of the
Company to suspend such use, and prior to suspending such use the Company
provides the Holders with written notice of such suspension, which notice need
not specify the nature of the event giving rise to such suspension.

     3.     Registration Procedures. In connection with the Shelf Registration
Statements, the following provisions shall apply:

		
	 	     (a) (i) Not less than 30 calendar days prior to the intended
Effective Time of the initial Shelf Registration Statement, the Company
shall distribute the Notice and Questionnaire to the Holders of
Registrable Securities. The Company shall take action to name each
Holder that is an Electing Holder as of the date that is five Business
Days prior to the effectiveness of the initial Shelf Registration
Statement as a selling securityholder in the initial Shelf Registration
Statement at the time of its effectiveness so that such Holder is
permitted to deliver the Prospectus forming a part thereof as of such
time to purchasers of such Holder’s Registrable Securities in accordance
with applicable law. The Company shall not be required to take any
action to name any Holder as a selling securityholder in the initial
Shelf Registration Statement or to enable any Holder to use the
Prospectus forming a part thereof for resales of Registrable Securities
until such Holder has returned a completed and signed Notice and
Questionnaire to the Company.

		
	 	     (ii) After the Effective Time of the initial Shelf Registration
Statement, the Company shall, upon the request of any Holder of
Registrable Securities that is not then an Electing Holder, promptly send
a Notice and Questionnaire to such Holder. From and after the Effective
Time of the initial Shelf Registration Statement, the Company shall (A)
as promptly as is practicable after the date a completed and signed
Notice and Questionnaire is delivered to the Company, and in any event
within ten Business Days or, if the Company is required to file with the
Commission a new Shelf Registration, 30 calendar days, after such date,
prepare and file with the Commission (x) a supplement to the Prospectus
or, if required by applicable law, a post-effective amendment to the
Shelf Registration Statement or an additional Shelf Registration
Statement and (y) any other document required by applicable law, so that
the Holder delivering such Notice and Questionnaire is named as a selling
securityholder in a Shelf Registration Statement and is permitted to
deliver the Prospectus to purchasers of such Holder’s Registrable

5

 

		
	 	Securities in accordance with applicable law, and (B) if the Company shall file a
post-effective amendment to the Shelf Registration Statement, or an
additional Shelf Registration Statement, use its reasonable best efforts
to cause such post-effective amendment or such additional Shelf
Registration Statement to become effective under the Securities Act as
promptly as is practicable, but in any event by the date that is (i) ten
Business Days after the date such post-effective amendment or (ii) 45
calendar days after the date such additional Shelf Registration Statement
is required to be filed; provided, however, that if a Notice and
Questionnaire is delivered to the Company during a Suspension Period, the
Company shall not be obligated to take the actions set forth in this
clause (ii) until the termination of such Suspension Period.
Notwithstanding the foregoing, on and after such time that a second Shelf
Registration Statement shall have been declared effective, if Holders of
Registrable Securities who are not the Electing Holders in a previous
Shelf Registration Statement deliver completed Notice and Questionnaires
within 30 calendar days of the date of effectiveness of the most recent
Shelf Registration Statement, the Company shall not be required to take
any action pursuant to the immediately preceding sentence for a period of
up to an additional 30 calendar days if the aggregate amount of
Registrable Securities set forth in such Notice and Questionnaires is
less than $2,000,000.

		
	 	     (iii) The term “Electing Holder” shall mean any Holder of
Registrable Securities that has returned a completed and signed Notice
and Questionnaire to the Company in accordance with Section 3(a)(i) or
3(a)(ii) hereof.

     (b)  The Company shall furnish to one counsel for the Purchaser, prior to
the Effective Time, a copy of each Shelf Registration Statement initially filed
with the Commission, and shall furnish to such counsel, prior to the filing
thereof with the Commission, copies of each amendment thereto and each
amendment or supplement, if any, to the Prospectus included therein, and shall
use its best efforts to reflect in each such document, at the Effective Time or
when so filed with the Commission, as the case may be, such comments as the
Holders and their counsel reasonably may propose.

     (c)  The Company shall promptly take such action as may be necessary so
that (i) each of the Shelf Registration Statements and any amendment thereto
and the Prospectus forming a part thereof and any amendment or supplement
thereto (and each report or other document incorporated therein by reference in
each case) complies in all material respects with the Securities Act and the
Exchange Act and the respective rules and regulations thereunder, (ii) each of
the Shelf Registration Statements and any amendment thereto does not, when it
becomes effective, contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading, and (iii) each of the Prospectus forming a
part of any Shelf Registration Statement, and any amendment or supplement to
such Prospectus, does not at any time during the Effectiveness Period include
an untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading.

6

 

     (d)  The Company shall promptly advise each Electing Holder, and shall
confirm such advice in writing if so requested by any such Electing Holder:

		
	 	     (i) when the initial Shelf Registration Statement has been filed
with the Commission and when the initial Shelf Registration Statement has
become effective, in each case making a public announcement thereof by
release made to Dow Jones & Company, Inc. or Bloomberg Business News or
other similarly broad public medium that is customary for such releases;
	 
	 	     (ii) when any Prospectus supplement, Shelf Registration Statement or
post-effective amendment to a Shelf Registration has been filed with the
Commission and, with respect to a Shelf Registration Statement or any
post-effective amendment, when the same has been declared effective by
the Commission;
	 
	 	     (iii) of any request by the Commission for amendments or supplements
to the Shelf Registration Statement or the Prospectus included therein or
for additional information;
	 
	 	     (iv) of the issuance by the Commission of any stop order suspending
the effectiveness of the Shelf Registration Statement or the initiation
of any proceedings for such purpose;
	 
	 	     (v) of the receipt by the Company of any notification with respect
to the suspension of the qualification of the securities included in the
Shelf Registration Statement for sale in any jurisdiction or the
initiation of any proceeding for such purpose; and
	 
	 	     (vi) of the happening of any event or the existence of any state of
facts that requires the making of any changes in the Shelf Registration
Statement or the Prospectus included therein so that, as of such date,
such Shelf Registration Statement and Prospectus do not contain an untrue
statement of a material fact and do not omit to state a material fact
required to be stated therein or necessary to make the statements therein
(in the case of the Prospectus, in the light of the circumstances under
which they were made) not misleading (which advice shall be accompanied
by an instruction to such Holders to suspend the use of the Prospectus
until the requisite changes have been made, which notice need not specify
the nature of the event giving rise to such suspension).

     (e)  The Company shall use its reasonable best efforts to prevent the
issuance, and if issued to obtain the withdrawal at the earliest possible time,
of any order suspending the effectiveness of any Shelf Registration Statement.

     (f)  The Company shall furnish to each Electing Holder, without charge, at
least one copy of the applicable Shelf Registration Statement and all
post-effective amendments thereto, including financial statements and
schedules, and, if such Electing Holder so requests in writing, all reports,
other documents and exhibits that are filed with or incorporated by reference
in such Shelf Registration Statement.

7

 

     (g)  The Company shall, during the Effectiveness Period, deliver to each
Electing Holder, without charge, as many copies of each Prospectus in which the
Electing Holder is listed
as a selling securityholder (including each preliminary Prospectus) included in
the applicable Shelf Registration Statement and any amendment or supplement
thereto as such Electing Holder may reasonably request; and the Company
consents (except during a Suspension Period or during the continuance of any
event described in Section 3(d) (iii)-(v) above) to the use of the Prospectus
and any amendment or supplement thereto by each of the Electing Holders in
connection with the offering and sale of the Registrable Securities covered by
the Prospectus and any amendment or supplement thereto during the Effectiveness
Period.

     (h)  Prior to any offering of Registrable Securities pursuant to a Shelf
Registration Statement, the Company shall (i) register or qualify or cooperate
with the Electing Holders and their respective counsel in connection with the
registration or qualification of such Registrable Securities for offer and sale
under the securities or “blue sky” laws of such jurisdictions within the United
States as any Electing Holder may reasonably request, (ii) keep such
registrations or qualifications in effect and comply with such laws so as to
permit the continuance of offers and sales in such jurisdictions for so long as
may be necessary to enable any Electing Holder or underwriter, if any, to
complete its distribution of Registrable Securities pursuant to such Shelf
Registration Statement, and (iii) take any and all other actions necessary or
advisable to enable the disposition in such jurisdictions of such Registrable
Securities; provided, however, that in no event shall the Company be obligated
to (A) qualify as a foreign corporation or as a dealer in securities in any
jurisdiction where it would not otherwise be required to so qualify but for
this Section 3(h) or (B) file any general consent to service of process in any
jurisdiction where it is not as of the date hereof so subject.

     (i)  Unless any Registrable Securities shall be in book-entry only form,
the Company shall cooperate with the Electing Holders to facilitate the timely
preparation and delivery of certificates representing Registrable Securities to
be sold pursuant to any Shelf Registration Statement, which certificates, if so
required by any securities market or exchange upon which any Registrable
Securities are quoted or listed, shall be penned, lithographed or engraved, or
produced by any combination of such methods, on steel engraved borders, and
which certificates shall be free of any restrictive legends and in such
permitted denominations and registered in such names as Electing Holders may
request in connection with the sale of Registrable Securities pursuant to such
Shelf Registration Statement.

     (j)  Upon the occurrence of any fact or event contemplated by paragraph
3(d)(v) above, subject to Section 2(c) hereof, the Company shall promptly, but
in any event within five Business Days following such occurrence, prepare, file
(and have declared effective) a post-effective amendment to any Shelf
Registration Statement or an amendment or supplement to the related Prospectus
included therein or file any other document with the Commission so that, as
thereafter delivered to purchasers of the Registrable Securities, the
Prospectus will not include an untrue statement of a material fact or omit to
state any material fact necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading. If the
Company notifies the Electing Holders of the occurrence of any fact or event
contemplated

8

 

by paragraph 3(d)(v) above, the Electing Holder shall suspend the
use of the Prospectus until the requisite changes to the Prospectus have been
made.

     (k)  Not later than the Effective Time of a Shelf Registration Statement,
the Company shall provide a CUSIP number for the Registrable Securities that
are debt securities.

     (l)  The Company shall use its reasonable best efforts to comply with all
applicable Rules and Regulations, and to make generally available to its
securityholders as soon as practicable, but in any event not later than
eighteen months after (i) the effective date (as defined in Rule 158(c) under
the Securities Act) of a Shelf Registration Statement, (ii) the effective date
of each post-effective amendment to such Shelf Registration Statement, and
(iii) the date of each filing by the Company with the Commission of an Annual
Report on Form 10-K that is incorporated by reference in such Shelf
Registration Statement, an earnings statement of the Company and its
subsidiaries complying with Section 11(a) of the Securities Act and the rules
and regulations of the Commission thereunder (including, at the option of the
Company, Rule 158).

     (m)  Not later than the Effective Time of the initial Shelf Registration
Statement, the Company shall cause the Indenture to be qualified under the
Trust Indenture Act; in connection with such qualification, the Company shall
cooperate with the Trustee under the Indenture and the Holders (as defined in
the Indenture) to effect such changes to the Indenture as may be required for
such Indenture to be so qualified in accordance with the terms of the Trust
Indenture Act; and the Company shall execute, and shall use all reasonable
efforts to cause the Trustee to execute, all documents that may be required to
effect such changes and all other forms and documents required to be filed with
the Commission to enable such Indenture to be so qualified in a timely manner.
In the event that any such amendment or modification referred to in this
Section 3(m) involves the appointment of a new trustee under the Indenture, the
Company shall appoint a new trustee thereunder pursuant to the applicable
provisions of the Indenture.

     (n)  The Company shall enter into such customary agreements and take all
such other necessary actions in connection therewith (including those
reasonably requested by the holders of a majority of the Registrable Securities
being sold) in order to expedite or facilitate disposition of such Registrable
Securities; provided, that the Company shall not be required to take any action
in connection with an underwritten offering without its consent.

     (o)  The Company shall make reasonably available for inspection by the
Electing Holders, any underwriter participating in any disposition pursuant to
any Shelf Registration Statement, and any attorney, accountant or other agent
retained by such Electing Holders or any such underwriter all relevant
financial and other records, pertinent corporate documents and properties of
the Company and its subsidiaries, and (B) cause the Company’s officers,
directors and employees to supply all information reasonably requested by such
Electing Holders or any such underwriter, attorney, accountant or agent in
connection with such Shelf Registration Statement, in each case, as is
customary for similar due diligence examinations; provided, however, that such
persons shall, at the Company’s request, first agree in writing with the
Company that any information that is reasonably and in good faith designated by
the Company in writing as confidential at the time of delivery of such
information shall be kept confidential by

9

 

such persons and shall be used solely
for the purposes of exercising rights under this Agreement, unless such
disclosure is made in connection with a court proceeding or required by law, or
such records, information or documents become available to the public generally
or through a third party without an accompanying obligation of confidentiality; and provided
further that, if the foregoing inspection and information gathering would
otherwise disrupt the Company’s conduct of its business, such inspection and
information gathering shall, to the greatest extent possible, be coordinated on
behalf of the Electing Holders and the other parties entitled thereto by one
counsel designated by and on behalf of the Electing Holders and other parties;

     (p)  The Company will use its best efforts to cause the Common Stock
issuable upon conversion of the Securities to be quoted or listed on the Nasdaq
National Market or other market or stock exchange on which the Common Stock
primarily trades on or prior to the Effective Time of each Shelf Registration
Statement hereunder.

     (q)  The Company will cooperate and assist in any filings or by taking any
other actions required to be made or taken with or by NASD, Inc.

     (r)  The Company shall use its reasonable best efforts to take all other
steps necessary to effect the registration, offering and sale of the
Registrable Securities covered by each Shelf Registration Statement
contemplated hereby.

     4.     Registration Expenses. Except as otherwise provided in Section 3, the
Company shall bear all fees and expenses incurred in connection with the
performance of its obligations under Sections 2 and 3 hereof and shall bear or
reimburse the Electing Holders for the reasonable fees and disbursements of a
single counsel selected by a plurality of all Electing Holders who own an
aggregate of not less than 25% of the principal amount of the Registrable
Securities covered by a Shelf Registration Statement to act as counsel
therefore in connection therewith. Each Electing Holder shall pay all
underwriting discounts and commissions and transfer taxes, if any, relating to
the sale or disposition of such Electing Holder’s Registrable Securities
pursuant to such Shelf Registration Statement.

     5.     Indemnification and Contribution.

     (a)  Indemnification by the Company. Upon the registration of the
Registrable Securities pursuant to Section 2 hereof, the Company shall
indemnify and hold harmless each Electing Holder and each underwriter, selling
agent or other securities professional, if any, which facilitates the
disposition of Registrable Securities, and each of their respective officers
and directors and each person who controls such Electing Holder, underwriter,
selling agent or other securities professional within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act (each such person being
sometimes referred to as an “Indemnified Person”) against any losses, claims,
damages, expenses or liabilities, joint or several, to which such Indemnified
Person may become subject under the Securities Act, the Exchange Act or
otherwise, insofar as such losses, claims, damages, expenses or liabilities (or
actions in respect thereof) arise out of or are based upon an untrue statement
or alleged untrue statement of a material fact contained in any Shelf
Registration Statement under which such Registrable Securities are to be
registered under

10

 

the Securities Act, or any Prospectus contained therein or
furnished by the Company to any Indemnified Person, or any amendment or
supplement thereto, or arise out of or are based upon any omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading, and the Company hereby agrees to
reimburse such Indemnified Person for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such action
or claim as such expenses are incurred; provided, however, that the Company
shall not be liable to any such Indemnified Person in any such case to the
extent that any such loss, claim, damage or liability arises out of or is based
upon an untrue statement or alleged untrue statement or omission or alleged
omission made in such Shelf Registration Statement or Prospectus, or amendment
or supplement, in reliance upon and in conformity with written information
furnished to the Company by such Indemnified Person expressly for use therein;
provided, further, however, that the Company shall not be liable to any
indemnified person in any such case to the extent that such loss, damage,
expense, liability or claim (i) arises from an offer or sale by an Electing
Holder of Registrable Securities occurring during a Suspension Period, if the
indemnified party is an Electing Holder that received from the Company a notice
of commencement of any Suspension Period prior to the making of such offer or
sale or (2) the Electing Holder fails to deliver at or prior to written
confirmation of sale, the most recent Prospectus, as amended or supplemented,
and such Prospectus, as amended or supplemented, would have corrected such
untrue statement or omission or alleged untrue statement or omission of a
material fact and the Company had previously provided to such Electing Holder
such most recent Prospectus, as amended or supplemented, in a timely manner and
in requisite quantities so as to timely permit such delivery by the Electing
Holder.

     (b)  Indemnification by the Electing Holders and any Agents and
Underwriters. Each Electing Holder agrees, as a consequence of the inclusion
of any of such Electing Holder’s Registrable Securities in such Shelf
Registration Statement, and each underwriter, selling agent or other securities
professional, if any, which facilitates the disposition of Registrable
Securities shall agree, as a consequence of facilitating such disposition of
Registrable Securities, severally and not jointly, to (i) indemnify and hold
harmless the Company, its directors, officers who sign any Shelf Registration
Statement and each person, if any, who controls the Company within the meaning
of Section 15 of the Securities Act or Section 20 of the Exchange Act, against
any losses, claims, damages or liabilities to which the Company or such other
persons may become subject, under the Securities Act, the Exchange Act or
otherwise, insofar as such losses, claims, damages, expenses or liabilities (or
actions in respect thereof) arise out of or are based upon an untrue statement
or alleged untrue statement of a material fact contained in such Shelf
Registration Statement or Prospectus, or any amendment or supplement, or arise
out of or are based upon any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not
misleading, in each case to the extent, but only to the extent, that such
untrue statement or alleged untrue statement or omission or alleged omission
was made in reliance upon and in conformity with written information furnished
to the Company by such Electing Holder, underwriter, selling agent or other
securities professional expressly for use therein, and (ii) reimburse the
Company for any legal or other expenses reasonably incurred by

11

 

the Company in
connection with investigating or defending any such action or claim as such
expenses are incurred.

     (c)  Notices of Claims, Etc. Promptly after receipt by an indemnified
party under subsection (a) or (b) above of notice of the commencement of any
action, such indemnified party shall, if a claim in respect thereof is to be
made against an indemnifying party under this Section 5, notify such
indemnifying party in writing of the commencement thereof; but the omission so
to notify the indemnifying party shall not relieve it from any liability which
it may have to any indemnified party otherwise than under the indemnification
provisions of or contemplated by subsection (a) or (b) above. In case any such
action shall be brought against any indemnified party and it shall notify an
indemnifying party of the commencement thereof, such indemnifying party shall
assume the defense thereof, with counsel reasonably satisfactory to such
indemnified party (who shall not, except with the consent of the indemnified
party, be counsel to the indemnifying party), including the payment of all fees
and expenses. Such indemnified party shall have the right to employ its own
counsel in any such case, but the fees and expenses of such counsel shall be at
the expense of such indemnified party unless the employment of such counsel
shall have been authorized in writing by such indemnifying party in connection
with the defense of such proceeding or such indemnifying party shall not have
employed counsel to have charge of the defense that is reasonably satisfactory
to the indemnified party of such proceeding within 60 days of the receipt of
notice thereof or such indemnified party shall have reasonably concluded upon
written advice of counsel that there may be defenses available to it that are
different from, additional to, or in conflict with those available to such
indemnifying party (in which case such indemnifying party shall not have the
right to direct that portion of the defense of such proceeding on behalf of
such indemnified party, but such indemnifying party may employ counsel and
participate in the defense thereof but the fees and expenses of such counsel
shall be at the expense of such indemnifying party), in any of which events
such reasonable fees and expenses shall be borne by such indemnifying party and
paid as incurred (it being understood, however, that such indemnifying party
shall not be liable for the expenses of more than one separate counsel in any
one proceeding or series of related proceedings together with reasonably
necessary local counsel representing the indemnified parties who are parties to
such proceeding). An indemnifying party shall not be liable for any settlement
or compromise of any such proceeding effected without its written consent, but
if settled or compromised with the written consent of such indemnifying party,
such indemnifying party agrees to indemnify and hold harmless an indemnified
party from and against any loss or liability by reason of such settlement. An
indemnifying party shall not, without the prior written consent of any
indemnified party, effect any settlement of any pending or threatened
proceeding in respect of which such indemnified party is or could have been a
party and indemnity could have been sought hereunder by such indemnified party,
unless such settlement includes an unconditional release of such indemnified
party from all liability on claims that are the subject matter of such
proceeding and does not include an admission of fault, culpability or a failure
to act, by or on behalf of such indemnified party.

     (d)  Contribution. If the indemnification provided for in this Section 5
is unavailable to an indemnified party under subsection (a) or (b) above in
respect of any losses, claims,

12

 

damages, expenses or liabilities (or actions in
respect thereof) referred to therein, then each indemnifying party shall
contribute to the amount paid or payable by such indemnified party as a result
of such losses, claims, damages, expenses or liabilities (or actions in respect
thereof) in such proportion as is appropriate to reflect the relative fault of
the indemnifying party and the indemnified party in
connection with the statements or omissions which resulted in such losses,
claims, damages, expenses or liabilities (or actions in respect thereof), as
well as any other relevant equitable considerations. The relative fault of
such indemnifying party and indemnified party shall be determined by reference
to, among other things, whether the untrue or alleged untrue statement of a
material fact or omission or alleged omission to state a material fact relates
to information supplied by such indemnifying party or by such indemnified
party, and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The relative
benefit to such indemnifying party and indemnified party shall be determined in
such proportion as is appropriate to reflect the benefits received by the
Company on the one hand and the Holders on the other hand from the offering of
the Registrable Securities. The parties hereto agree that it would not be just
and equitable if contribution pursuant to this Section 5(d) were determined by
pro rata allocation (even if the Electing Holders or any underwriters, selling
agents or other securities professionals or all of them were treated as one
entity for such purpose) or by any other method of allocation which does not
take account of the equitable considerations referred to in this Section 5(d).
The amount paid or payable by an indemnified party as a result of the losses,
claims, damages, expenses or liabilities (or actions in respect thereof)
referred to above shall be deemed to include any legal or other fees reasonably
incurred by such indemnified party in connection with investigating or
defending any such action or claim. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. The obligations of the Electing Holders and any
underwriters, selling agents or other securities professionals in this Section
5(d) to contribute shall be several in proportion to the percentage of
principal amount of Registrable Securities registered or underwritten, as the
case may be, by them and not joint.

     (e)  Notwithstanding any other provision of this Section 5, in no event
will any (i) Electing Holder be required to undertake liability to any person
under this Section 5 for any amounts in excess of the dollar amount of the
proceeds to be received by such Holder from the sale of such Holder’s
Registrable Securities (after deducting any fees, discounts and commissions
applicable thereto) pursuant to any Shelf Registration Statement under which
such Registrable Securities are to be registered under the Securities Act and
(ii) underwriter, selling agent or other securities professional be required to
undertake liability to any person hereunder for any amounts in excess of the
discount, commission or other compensation payable to such underwriter, selling
agent or other securities professional with respect to the Registrable
Securities underwritten by it and distributed to the public.

     (f)  The obligations of the Company under this Section 5 shall be in
addition to any liability which the Company may otherwise have to any
Indemnified Person and the obligations of any Indemnified Person under this
Section 5 shall be in addition to any liability which such Indemnified Person
may otherwise have to the Company. The remedies provided in this

13

 

Section 5 are
not exclusive and shall not limit any rights or remedies which may otherwise be
available to an indemnified party at law or in equity.

     6.     Holder’s Obligations. Each Holder agrees, by acquisition of the
Registrable Securities, that no Holder of Registrable Securities shall be
entitled to sell any of such Registrable
Securities pursuant to a Shelf Registration Statement or to receive a
Prospectus relating thereto, unless such Holder has furnished the Company with
a Notice and Questionnaire as required pursuant to Section 3(a)(ii) hereof
(including the information required to be included in such Notice and
Questionnaire) and the information set forth in the next sentence. Each
Electing Holder agrees promptly to furnish to the Company all information
required to be disclosed in order to make the information previously furnished
to the Company by such Electing Holder not misleading and any other information
regarding such Electing Holder and the distribution of such Registrable
Securities as the Company may from time to time reasonably request. Any sale
of any Registrable Securities by any Electing Holder shall constitute a
representation and warranty by such Electing Holder that the information
relating to such Electing Holder and its plan of distribution is as set forth
in the Prospectus delivered by such Electing Holder in connection with such
disposition, that such Prospectus does not as of the time of such sale contain
any untrue statement of a material fact relating to or provided by such
Electing Holder or its plan of distribution and that such Prospectus does not
as of the time of such sale omit to state any material fact relating to or
provided by such Electing Holder or its plan of distribution necessary in order
to make the statements in such Prospectus, in the light of the circumstances
under which they were made, not misleading.

     7.     Liquidated Damages.

     (a)  Notwithstanding any postponement of the effectiveness pursuant to
Section 2(a) hereof, if (i) on or prior to the 90th day following the Issue
Date, a Shelf Registration Statement has not been filed with the Commission,
(ii) on or prior to the 180th day following the Issue Date, such initial Shelf
Registration Statement is not declared effective by the Commission or (iii) if,
after the effectiveness date of any Shelf Registration Statement, (x) such
Shelf Registration Statement ceases to be effective or usable for the offer and
sale of Registrable Securities (other than due to a Suspension Period), and the
Company fails to file (and have declared effective), within five Business Days,
a post-effective amendment to such Shelf Registration Statement or amendment or
supplement to the Prospectus contained therein or such other document with the
Commission to make such Shelf Registration Statement effective or such
Prospectus usable, or (y) the Suspension Periods exceed 45 days, whether or not
consecutive, in any 90-day period, or more than 90 days, whether or not
consecutive, during any 12-month period during the Effectiveness Period (each,
a “Registration Default”), the Company shall be required to pay liquidated
damages (“Liquidated Damages”), from and including the day following such
Registration Default to but excluding the day on which such Registration
Default is cured, at a rate per annum equal to an additional one-quarter of one
percent (0.25%) of the Applicable Amount to and including the 90th day
following such Registration Default, and one-half of one percent (0.5%) thereof
from and after the 91st day following such Registration Default.

14

 

     (b)  A Holder will not be entitled to Liquidated Damages until such time as
it has provided to the Company a completed Notice and Questionnaire.

     (c)  Any amounts to be paid as Liquidated Damages pursuant to paragraph (a)
of this Section 7 shall be paid in cash semiannually in arrears, with the first
semiannual payment due on the first interest payment date following the date on
which such Liquidated Damages begin to accrue, to the persons in whose name the Securities or Common Stock issued
upon conversion of the Securities are registered at the close of business on
June 1 or December 1, whether or not a Business Day, immediately preceding the
relevant interest payment date.

     (d)  Except as provided in Section 8(a) hereof, the Liquidated Damages as
set forth in this Section 7 shall be the exclusive monetary remedy available to
the Holders of Registrable Securities for such Registration Default. In no
event shall the Company be required to pay Liquidated Damages in excess of the
applicable maximum amount of one-half of one percent (0.5%) set forth above,
regardless of whether one or multiple Registration Defaults exist.

     8.     Miscellaneous.

     (a)  Specific Performance. The parties hereto acknowledge that there would
be no adequate remedy at law if the Company fails to perform any of its
obligations hereunder and that the Purchaser and the Holders from time to time
may be irreparably harmed by any such failure, and accordingly agree that the
Purchaser and such Holders, in addition to any other remedy to which they may
be entitled at law or in equity and without limiting the remedies available to
the Electing Holders under Section 7 hereof, shall be entitled to compel
specific performance of the obligations of the Company under this Registration
Rights Agreement in accordance with the terms and conditions of this
Registration Rights Agreement, in any court of the United States or any State
thereof having jurisdiction.

     (b)  Amendments and Waivers. This Agreement, including this Section 8(b),
may be amended, and waivers or consents to departures from the provisions
hereof may be given, only by a written instrument duly executed by the Company
and the Holders of a majority in aggregate principal amount of Registrable
Securities then outstanding. Each Holder of Registrable Securities outstanding
at the time of any such amendment, waiver or consent or thereafter shall be
bound by any amendment, waiver or consent effected pursuant to this Section
8(b), whether or not any notice, writing or marking indicating such amendment,
waiver or consent appears on the Registrable Securities or is delivered to such
Holder.

     (c)  Notices. All notices and other communications provided for or
permitted hereunder shall be given as provided in the Indenture.

     (d)  Parties in Interest. The parties to this Agreement intend that all
Holders of Registrable Securities shall be entitled to receive the benefits of
this Agreement and that any Electing Holder shall be bound by the terms and
provisions of this Agreement by reason of such election with respect to the
Registrable Securities which are included in a Shelf Registration Statement.
All the terms and provisions of this Agreement shall be binding upon, shall
inure to the benefit of and shall be enforceable by the respective successors
and assigns of the parties

15

 

hereto and any Holder from time to time of the
Registrable Securities to the aforesaid extent. In the event that any
transferee of any Holder of Registrable Securities shall acquire Registrable
Securities, in any manner, whether by gift, bequest, purchase, operation of law
or otherwise, such transferee shall, without any further writing or action of
any kind, be entitled to receive the benefits of and, if an Electing Holder, be conclusively deemed to have agreed
to be bound by and to perform all of the terms and provisions of this Agreement
to the aforesaid extent.

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

     (f)  Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

     (g)  Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York.

     (h)  Severability. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstances, is held
invalid, illegal or unenforceable in any respect for any reason, the validity,
legality and enforceability of any such provision in every other respect and of
the remaining provisions hereof shall not be in any way impaired or affected
thereby, it being intended that all of the rights and privileges of the parties
hereto shall be enforceable to the fullest extent permitted by law.

     (i)  Survival. The respective indemnities, agreements, representations,
warranties and other provisions set forth in this Agreement or made pursuant
hereto shall remain in full force and effect, regardless of any investigation
(or any statement as to the results thereof) made by or on behalf of any
Electing Holder, any director, officer or partner of such Holder, any agent or
underwriter, any director, officer or partner of such agent or underwriter, or
any controlling person of any of the foregoing, and shall survive the transfer
and registration of the Registrable Securities of such Holder.

     9.     Submission to Jurisdiction; Appointment of Agent for Service

     The Company agrees that any suit, action or proceeding against the Company
arising out of or based upon this Agreement or the transactions contemplated
hereby may be instituted in any State or Federal court in The City of New York,
New York, and waives any objection which it may now or hereafter have to the
laying of venue of any such proceeding, and irrevocably submits to the
non-exclusive jurisdiction of such courts in any suit, action or proceeding.
The Company expressly accepts the non-exclusive jurisdiction of any such court
in respect of any such suit, action or proceeding. The Company agrees that a
final judgment in any such proceeding brought in any such court shall be
conclusive and binding thereupon and may be enforced in any other court in the
jurisdiction to which the Company is or may be subject by suit upon such
judgment.

16

 

          Please confirm that the foregoing correctly sets forth the agreement
between the Company and you.

	 	 	 
	 	Very truly
yours,

WebMD Corporation
 
	 	By:	
/s/ Kirk G. Layman
	 	 	

	 	 	

Name: Kirk G. Layman
	 	 	

Title: Executive Vice President,
	 	 	
Administration and Acting 

Chief Financial Officer

Accepted as of the date hereof:

     Banc of America Securities LLC

	 	 	 	 
	 	  By:	
 /s/ Thomas Morrison

 Name: Thomas Morrison

 Title:   Managing Director

17

 

WEBMD CORPORATION

FORM OF SELLING SECURITYHOLDER NOTICE AND QUESTIONNAIRE

1.75% CONVERTIBLE SUBORDINATED NOTES DUE 2023

     The undersigned beneficial owner of 1.75% Convertible Subordinated Notes
due 2023 (the “Notes”) of WebMD Corporation (the “Company” or “Registrant”) or
Common Stock, par value $.0001 per share (the “Common Stock” and, together with
the Notes, the “Registrable Securities”), of the Company understands that the
Registrant has filed or intends to file with the U.S. Securities and Exchange
Commission (the “Commission”) a registration statement on Form S-3 (the “Shelf
Registration Statement”) for the registration and resale under Rule 415 of the
Securities Act of 1933, as amended (the “Securities Act”), of the Registrable
Securities, in accordance with the terms of the Registration Rights Agreement,
dated as of June 25, 2003 (the “Registration Rights Agreement”), between the
Company and the initial purchaser named therein. A copy of the Registration
Rights Agreement is available from the Company upon request at the address set
forth below. All capitalized terms not otherwise defined herein shall have the
meanings ascribed thereto in the Registration Rights Agreement.

     Each beneficial owner of Registrable Securities is entitled to the
benefits of the Registration Rights Agreement. In order to sell or otherwise
dispose of any Registrable Securities pursuant to the Shelf Registration
Statement, a beneficial owner of Registrable Securities generally will be
required to be named as a selling securityholder in the related prospectus,
deliver a prospectus to purchasers of Registrable Securities and be bound by
the provisions of the Registration Rights Agreement applicable to such
beneficial owner (including certain indemnification provisions described
below). Beneficial owners that do not complete this Notice and Questionnaire
and deliver it to the Company as provided below will not be named as selling
securityholders in the prospectus and therefore will not be permitted to sell
any Registrable Securities pursuant to the Shelf Registration Statement.
Beneficial owners are encouraged to complete and deliver this Notice and
Questionnaire prior to the effectiveness of the Shelf Registration Statement so
that such beneficial owners may be named as selling securityholders in the
related prospectus. Upon receipt of a completed Notice and Questionnaire from
a beneficial owner following the effectiveness of the Shelf Registration
Statement, the Company will, as promptly as practicable but in any event within
(i) ten business days of such receipt, file such amendments to the Shelf
Registration Statement or supplements to the related prospectus, or (ii) 30
calendar days of such receipt, file a new Shelf Registration Statement with the
Commission if required to do so, in each case as are necessary to permit such
holder to deliver such prospectus to purchasers of Registrable Securities. The
Company has agreed to pay liquidated damages pursuant to the Registration
Rights Agreement under certain circumstances set forth therein.

     Certain legal consequences arise from being named as a selling
securityholder in the Shelf Registration Statement and the related prospectus.
Accordingly, holders and beneficial owners of Registrable Securities are
advised to consult their own securities law counsel regarding the consequences
of being named or not being named as a selling securityholder in the Shelf
Registration Statement and the related prospectus.

1

 

NOTICE

     The undersigned beneficial owner (the “Selling Securityholder”) of
Registrable Securities hereby gives notice to the Company of its intention to
sell or otherwise dispose of Registrable Securities beneficially owned by it
and listed below in Item 3 (unless otherwise specified under such Item 3)
pursuant to the Shelf Registration Statement. The undersigned, by signing and
returning this Notice and Questionnaire, understands that it will be bound by
the terms and conditions of this Notice and Questionnaire and the Registration
Rights Agreement.

     Pursuant to the Registration Rights Agreement, the undersigned has agreed
to indemnify and hold harmless the Company’s directors and officers and each
person, if any, who controls the Company within the meaning of either Section
15 of the Securities Act or Section 20 of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), from and against certain losses arising in
connection with statements concerning the undersigned made in the Company’s
Shelf Registration Statement or the related prospectus in reliance upon the
information provided in this Notice and Questionnaire.

     If the Selling Securityholder transfers all or any portion of the
Registrable Securities listed in Item 3 below after the date on which such
information is provided to the Company, the Selling Securityholder agrees to
notify the transferee(s) at the time of the transfer of its rights and
obligations under this Notice and Questionnaire and the Registration Rights
Agreement.

2

 

QUESTIONNAIRE

     Please respond to every item, even if your response is “none.” If you
need more space for any response, please attach additional sheets of paper.
Please be sure to indicate your name and the number of the item being responded
to on each such additional sheet of paper, and to sign each such additional
sheet of paper before attaching it to this Questionnaire. Please note that you
may be asked to answer additional questions depending on your responses to the
following questions.

     If you have any questions about the contents of this Questionnaire or as
to who should complete this Questionnaire, please contact Mr. Lewis H. Leicher
at WebMD Corporation at telephone number: (858) 759-6008.

COMPLETED QUESTIONNAIRES SHOULD BE RETURNED TO WEBMD CORPORATION

AS FOLLOWS:

1 COPY BY FACSIMILE TO JERRI DAVIS, SENIOR PARALEGAL, FAX: (404) 541-0164

WITH THE ORIGINAL COPY TO FOLLOW TO:

WEBMD CORPORATION 1175 PEACHTREE STREET, NE

100 COLONY SQUARE, SUITE 2400 ATLANTA, GA 30361

ATTENTION: JERRI DAVIS, SENIOR PARALEGAL

TEL: (404) 541-0130

     The undersigned hereby provides the following information to the Company
and represents and warrants that such information is accurate and complete:

	1.	 	YOUR IDENTITY AND BACKGROUND AS THE BENEFICIAL OWNER OF THE REGISTRABLE
SECURITIES

	 	(a)	 	Your full legal name:
	 
	 	(b)	 	Your business address (including street address) (or
residence if no business address), telephone number and facsimile
number:

	 	 	 
	 	Address:	

	 	 	 
	 	 	

	 	 	 
	 	Telephone No.:	

	 	 	 
	 	Fax No.:	

3

 

	 	(c)	 	Are you a broker-dealer registered pursuant to Section 15 of
the Exchange Act?
	 
	 	 	 	o Yes.
	 
	 	 	 	o No.
	 
	 	(d)	 	If your response to Item 1(c) above is no, are you an
“affiliate” of a broker-dealer registered pursuant to Section 15 of
the Exchange Act?
	 
	 	 	 	o Yes.
	 
	 	 	 	o No.
	 
	 	 	 	For the purposes of this Item 1(d), an “affiliate” of a registered
broker-dealer shall include any company that directly, or
indirectly through one or more intermediaries, controls, or is
controlled by, or is under common control with such broker-dealer,
and does not include any individuals employed by such broker-dealer
or its affiliates.
	 
	 	(e)	 	Full legal name of person through which you hold the
Registrable Securities (i.e., name of your broker or the DTC
participant, if applicable, through which your Registered Securities
are held):

	 	 	 	 	 
	 	
Name of broker:
	

	 	 	 	 	 
	 	
DTC No.:
	

	 	 	 	 	 
	 	
Contact person:
	

	 	 	 	 	 
	 	
Telephone No.:
	

	2.	 	YOUR RELATIONSHIP WITH WEBMD

	 	(a)	 	Have you or any of your affiliates, officers, directors or
principal equity holders (owners of 5% or more of the equity
securities of the undersigned) held any position or office, or have
you had any other material relationship with, WebMD (or its
predecessors or affiliates) within the past three years?
	 
	 	 	 	o Yes.
	 
	 	 	 	o No.
	 
	 	(b)	 	If your response to Item 2(a) above is yes, please state the
nature and duration of your relationship with WebMD:

4

 

	3.	 	YOUR INTEREST IN THE REGISTRABLE SECURITIES

	 	(a)	 	State the type of Registrable Securities (Notes or Common
Stock) and the principal amount or number of such Registrable
Securities beneficially owned by you. Check any of the following
that applies to you.
	 
	 	 	 	o I own Notes:
	 
	 	 	 	Principal amount and CUSIP No. of the Notes beneficially owned:
	 
	 	 	 	

	 
	 	 	 	CUSIP No(s):	 
	 	 	 	 	

	 
	 	 	 	o I own shares of Common Stock that were issued
upon conversion of the Notes:
	 
	 	 	 	Number of shares and CUSIP No. of the Common Stock beneficially
owned:
	 
	 	 	 	CUSIP No(s):	 
	 	 	 	 	

	 
	 	(b)	 	Other than as set forth in your response to Item 3(a) above,
do you beneficially own any other securities of WebMD (including any
Notes previously registered under the Securities Act)?
	 
	 	 	 	o Yes.
	 
	 	 	 	o No.
	 
	 	(c)	 	If your answer to Item 3(b) above is yes, state the type, the
aggregate amount and CUSIP No. of such other securities of WebMD
beneficially owned by you:

	 	 	 	 	 	 	 
	 	
Type:
	 
	 	
 
	

	 	 	 	 	 
	 	
Aggregate amount:
	 
	 	
 
	

	 	 	 	 	 
	 	
CUSIP No.:
	 
	 	
 
	

	 	(d)	 	Did you acquire the securities listed in Item 3(a) above in
the ordinary course of business?
	 
	 	 	 	o Yes.
	 
	 	 	 	o No.

5

 

	 	(e)	 	At the time of your purchase of the securities listed in Item
3(a) above, did you have any agreements or understandings, directly
or indirectly, with any person to distribute the securities?
	 
	 	 	 	o Yes.
	 
	 	 	 	o No.
	 
	 	(f)	 	If your response to Item 3(e) above is yes, please describe
such agreements or understandings:
	 
	 	 	 	

	 
	 	 	 	

	4.	 	NATURE OF YOUR BENEFICIAL OWNERSHIP

	 	(a)	 	If the name of the beneficial owner of the Registrable
Securities set forth in your response to Item 1(a) above is that of
a limited partnership, state the names of the general partners of
such limited partnership:
	 
	 	 	 	

	 
	 	 	 	

	 
	 	 	 	

	 
	 	(b)	 	With respect to each general partner listed in Item 4(a)
above who is not a natural person, and is not publicly held, name
each shareholder (or holder of partnership interests, if applicable)
of such general partner. If any of these named shareholders is not
a natural person or publicly held entity, please provide the same
information. This process should be repeated until you reach
natural persons or a publicly held entity.
	 
	 	 	 	

	 
	 	 	 	

	 
	 	 	 	

	 
	 	(c)	 	Name your controlling shareholder(s) (the “Controlling
Entity”). If the Controlling Entity is not a natural person and is
not a publicly held entity, name each shareholder of such
Controlling Entity. If any of these named shareholders are not
natural persons or publicly held entities, please provide the same
information. This process should be repeated until you reach
natural persons or a publicly held entity.

6

 

	 	(A)(i)	 	Full legal name of Controlling Entity(ies) or natural
person(s) with whom have sole or shared voting or dispositive
power over the Registrable Securities:
	 
	 	 	 	

	 
	 	(ii)	 	Business address (including street address) (or
residence if no business address), telephone number and
facsimile number of such person(s):

	 	 	 	 	 
	 	
Address:
	 
	 	
 
	

	 	 	 	 	 
	 	 	 	

	 	 	 	 	 
	 	 	 	

	 	 	 	 	 
	 	
Telephone:
	 
	 	
 
	

	 	 	 	 	 
	 	
Fax:
	 
	 	
 
	

	 	(iii)	 	Name of shareholders:
	 
	 	 	 	

	 
	 	 	 	

	 
	 	(B)(i)	 	Full legal name of Controlling Entity(ies):
	 
	 	 	 	

	 
	 	 	 	

	 
	 	(ii)	 	Business address (including street address) (or
residence if no business address), telephone number and
facsimile number of such person(s):

	 	 	 	 	 
	 	
Address:
	 
	 	
 
	

	 	 	 	 	 
	 	 	 	

	 	 	 	 	 
	 	 	 	

	 	 	 	 	 
	 	
Telephone:
	 
	 	
 
	

	 	 	 	 	 
	 	
Fax:
	 
	 	
 
	

7

 

	 	(iii)	 	Name of shareholder:
	 
	 	 	 	

	 
	 	 	 	

If you need more space for this response, please attach additional sheets of
paper. Please be sure to indicate your name and the number of the item being
responded to on each such additional sheet of paper, and to sign each such
additional sheet of paper before attaching it to this Questionnaire. Please
note that you may be asked to answer additional questions depending on your
responses to the following questions.

	5.	 	PLAN OF DISTRIBUTION

Except as set forth below, the undersigned (including its donees or pledgees)
intends to distribute the Registrable Securities listed above in Item 3
pursuant to the Shelf Registration Statement only as follows (if at all): Such
Registrable Securities may be sold from time to time directly by the
undersigned or, alternatively, through underwriters, broker-dealers or agents.
If the Registrable Securities are sold through underwriters, broker-dealers or
agents, the Selling Securityholder will be responsible for underwriting
discounts or commissions or agents’ commissions. Such Registrable Securities
may be sold in one or more transactions at fixed prices, at prevailing market
prices at the time of sale, at varying prices determined at the time of sale or
at negotiated prices. Such sales may be effected in transactions (which may
involve block transactions) (i) on any national securities exchange or
quotation service on which the Registrable Securities may be listed or quoted
at the time of sale, (ii) in the over-the-counter market, (iii) in transactions
otherwise than on such exchanges or services or in the over-the-counter market,
or (iv) through the writing of options. In connection with sales of the
Registrable Securities or otherwise, the undersigned may enter into hedging
transactions with broker-dealers, which may in turn engage in short sales of
the Registrable Securities in the course of hedging positions they assume. The
undersigned may also sell Registrable Securities short and deliver Registrable
Securities to close out short positions, or loan or pledge Registrable
Securities to broker-dealers that in turn may sell such securities.

State any exceptions here:

	 	Note:	 	In no event will such method(s) of distribution take the form of an
underwritten offering of the Registrable Securities without the prior
agreement of the Company.

     The undersigned acknowledges its obligation to comply with the provisions
of the Exchange Act and the rules thereunder relating to stock manipulation,
particularly Regulation M thereunder (or any successor rules or regulations),
in connection with any offering of Registrable Securities pursuant to the
Registration Rights Agreement. The undersigned agrees that neither it nor any
person acting on its behalf will engage in any transaction in violation of such
provisions.

8

 

     The undersigned beneficial owner and selling securityholder hereby
acknowledges its obligations under the Registration Rights Agreement to
indemnify and hold harmless certain persons as set forth therein. Pursuant to
the Registration Rights Agreement, the Company has agreed under certain
circumstances to indemnify the undersigned beneficial owner and selling
securityholder against certain liabilities.

     In accordance with the undersigned’s obligation under the Registration
Rights Agreement to provide such information as may be required by law for
inclusion in the Shelf Registration Statement, the undersigned agrees to
promptly notify the Company of any inaccuracies or changes in the information
provided herein that may occur subsequent to the date hereof at any time while
the Shelf Registration Statement remains effective.

     All notices to the beneficial owner hereunder and pursuant to the
Registration Rights Agreement shall be made in writing to the undersigned at
the address set forth in Item 1(b) of this Notice and Questionnaire.

     By signing below, the undersigned acknowledges that it is the beneficial
owner of the Registrable Securities set forth herein, represents that the
information provided herein is accurate, consents to the disclosure of the
information contained in this Notice and Questionnaire and the inclusion of
such information in the Shelf Registration Statement and the related
prospectus. The undersigned understands that such information will be relied
upon by the Company in connection with the preparation or amendment of the
Shelf Registration Statement and the related prospectus.

     Once this Notice and Questionnaire is executed by the undersigned
beneficial owner and received by the Company, the terms of this Notice and
Questionnaire, and the representations and warranties contained herein, shall
be binding on, shall inure to the benefit of and shall be enforceable by the
respective successors, heirs, personal representatives and assigns of the
Company and the undersigned beneficial owner. This Agreement shall be governed
in all respects by the laws of the State of New York.

9

 

     IN WITNESS WHEREOF the undersigned, by authority duly given, has caused
this Notice and Questionnaire to be executed and delivered either in person or
by its duly authorized agent.

	 	 	 	 
	 	NAME OF BENEFICIAL OWNER:
	 	 
	 	
	 
	 	 	
(Please Print)        	 
	 
	 	Signature:
	 	 	

	 
	 	Date:
	 	 	

10

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