Document:

Exhibit
10.1

 

EMPLOYMENT
AGREEMENT

 

EMPLOYMENT AGREEMENT (“Agreement”) made and entered into effective as of May 6, 2003 (the
“Effective Date”), by and between GENAISSANCE
PHARMACEUTICALS, INC. (the “Corporation”), a Delaware corporation
with its principal office at 5 Science Park, New Haven, Connecticut, 06511, and
BEN D. KAPLAN (“Executive”), an
individual who resides at 527 Mountain Road, West Hartford, Connecticut 06117.

 

WHEREAS, the Corporation and Executive desire to enter into this Agreement to
set forth the terms and conditions of their employment relationship, commencing
as of the Effective Date;

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained
herein, and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties agree as follows:

 

1.                                        Employment.  The Corporation shall employ
Executive in the capacity of Senior Vice President and Chief Financial Officer
(“CFO”) of the Corporation during the term of this Agreement, and Executive
hereby accepts such employment, on the terms and conditions hereinafter set
forth.  Executive represents that his
employment by the Corporation pursuant to this Agreement does not violate any
agreement, covenant or obligation to which he is a party or by which he is
bound.

 

2.                                       Duties.  During the term of this
Agreement, Executive shall perform all duties, consistent with his position as
CFO in order to advance the Corporation’s financial affairs and related
business efforts, assigned or delegated to him by the Chief Executive Officer
of the Corporation (the “CEO”), and normally associated with the position of
CFO, including, without limitation, formulating financial policy and plans and
providing overall direction for the accounting, tax, insurance, budget, credit,
treasury and management information reporting functions of the
Corporation.  He shall devote all of his
full business time and best efforts to the advancement of the interests and
business of the Corporation.

 

3.                                       Term.  The term of this Agreement
shall begin on the Effective Date, and shall expire on the fourth anniversary
of the Effective Date, unless earlier terminated as provided in this Agreement
(the “Initial Term”).  Upon expiration
of the Initial Term and any subsequent term or extension thereof, this
Agreement shall automatically be extended for an additional term of one (1)
year, unless Executive or the Corporation elect to terminate this Agreement in
accordance with the provisions of Section 12 of this Agreement (the “Initial
Term”, together with any subsequent terms or extensions, until termination or
expiration in accordance with the provisions of this Agreement, shall be
referred to herein as the “Employment Term”). 
If Executive continues in the employ of the Corporation after the end of
any Employment Term when no extension of this Agreement has been effected, then
Executive’s continued employment by the Corporation shall, notwithstanding
anything to the contrary expressed or implied herein, be terminable by the
Corporation at will.

 

 

4.                                       Compensation.  As
compensation for any and all services to be rendered by Executive to the
Corporation pursuant to this Agreement, the Corporation shall pay Executive and
provide Executive with the following compensation and benefits, which Executive
agrees to accept in full satisfaction for his services:

 

a.                                       Base Salary.  The Corporation shall pay
Executive a Base Salary, payable in equal installments at such payment
intervals as are the usual payroll practices of the Corporation, at an annual
rate of $210,000, less such deductions or amounts to be withheld as shall be
required by applicable law or as may be allowed at the request of Executive
(the “Base Salary”).  The Base Salary
shall be reviewed annually by the Board in the fourth quarter of each fiscal
year of the Corporation and shall be adjusted (effective as of January 1 of the
next fiscal year) by such amount, if any, as the CEO, in his sole discretion,
shall determine and the Board, in its sole discretion, shall approve.

 

b.                                      Bonus.  Provided Executive first
meets the Corporation’s expectations for his performance during the Employment
Term and remains employed on the date of payment, Executive shall be eligible
for a discretionary bonus (a “Discretionary Bonus”) of up to sixty percent
(60%) of his base compensation as determined by the CEO in his sole discretion
and approved by the Board in its sole discretion based upon Executive’s
achievements in meeting his performance goals and those of the Corporation for
its most recently ended fiscal year. 
Goals shall be established after the commencement of the Employment Term
and then in the first quarter of each subsequent fiscal year. For the first
fiscal year of employment, the bonus amount will be prorated based upon the
effective date of the Employment Agreement. 
Each Discretionary Bonus may be payable in cash, stock options, and/or
restricted stock upon such terms and conditions as determined by the CEO.  The Corporation shall pay any Discretionary
Bonus by the end of the first quarter of the following fiscal year.  As any bonus paid to Executive is
discretionary, the payment of any bonus in a year must not be construed as
requiring the payment of a bonus in any other year.

 

c.                                       Benefits.

 

(i)                                     Executive shall be entitled to participate,
to the extent he is eligible, in all group insurance programs, health, medical,
dental, and disability plans (including, without limitations, the Corporation’s
401(k) plan), and other employee benefit plans which the Corporation may
hereafter in its sole and absolute discretion make available generally to its
employees (other than any incentive compensation or equity ownership plan), but
the Corporation shall not be required to establish or maintain any such program
or plan.

 

(ii)                                  Executive shall be entitled to four (4) weeks
paid vacation during each calendar year, in accordance with the Corporation’s
vacation policies.  Such vacation may be
taken at such time or times as is reasonably consistent with the Corporation’s
vacation policies and the performance by Executive of his duties

 

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and responsibilities under
this Agreement.  Up to one week of
unused vacation time in one year may be carried over and used in the subsequent
year.

 

(iii)                               Executive shall be entitled to participate in
the Corporation’s 2000 Amended and Restated Equity Incentive Plan (the “Plan”)
and the Corporation shall use its best efforts to cause the Board or the
applicable committee of the Board to grant Executive a one-time initial option,
having a ten-year term, to purchase 200,000 shares of the Corporation’s common
stock at an exercise price per share equal to the price in effect at the close
of business on the effective date of the employment agreement (the “Option”).  The Option shall vest quarterly each
calendar year over a forty-eight (48) month period during the Employment Term,
such that 1/16 of the Option shall vest each quarter year, with accelerated
vesting in the event of Executive’s death or permanent disability or the termination
of this Agreement for other than For Cause or his exercise of his rights under
Sections 12(f) or 12(k).  Executive
understands and agrees that any stock rights granted to Executive shall be
subject to the provisions of the Plan and any separate written agreements
embodying the grant of the rights that are required by the Plan.  The rights shall be set forth in a separate
agreement embodying the grant of the rights which shall be otherwise in the
form stipulated in the Plan.  To the
extent that there is any conflict between the vesting provisions of this
Agreement and the provisions of the Plan, the provisions of this Agreement
shall govern.

 

(iv)                              The Corporation shall purchase and throughout
the Employment Term pay the premiums for a $1,000,000 policy of term life
insurance insuring the life of Executive (subject to his meeting the
suitability requirements of the insurer). 
Executive shall be the owner of such policy and entitled to all of the
rights of ownership including designation of the beneficiary thereof.

 

(v)                                 Subject to reasonable guidelines adopted by
the Board, throughout the Employment Term, the Corporation shall pay the costs
of dues for membership in professional organizations whose activities are
reasonably related to the business of the Corporation.

 

(vi)                              The Corporation shall provide Executive with
a policy of long-term disability insurance with reasonable coverages, which
shall include the payment of benefits equal to at least sixty percent (60%) of
Executive’s Base Salary during the disability coverage period, and the
Corporation shall pay the premiums or a portion thereof (as specified
hereafter) for such disability insurance policy up to the cost charged by the
insurer to insure a healthy 46-year old male, non-smoker.

 

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d.                                      Taxes.  All compensation and benefits
are subject to applicable withholding taxes, federal, state, and local, and any
other proper deductions.

 

e.                                       Benefit Plans. 
Executive understands that the Corporation may amend, change, or cancel
its employment policies and benefit plans at any time as allowed by law or by
any applicable plan documents.

 

5.                                       Business Expenses.  The
Corporation shall pay, or reimburse Executive for, the reasonable and necessary
business expenses of Executive incurred in the performance of his duties
hereunder, provided Executive provides timely and reasonable documentation
thereof in accordance with the rules and regulations of the Corporation
relating thereto.

 

6.                                       Compliance with Policies. 
Executive acknowledges and agrees that, except as set forth in this
Agreement, compliance with the Corporation’s policies, practices and procedures
is a term and condition of his employment under this Agreement.

 

7.                                       Inventions and Improvements. 
Executive acknowledges, covenants and agrees that the Corporation shall
be the sole owner of all the fruits and proceeds of Executive’s services to the
Corporation, including but not limited to all writings, inventions,
discoveries, designs, systems, processes, software or other improvements
relating to the business or products of the Corporation, whether or not
patentable, registerable, or copyrightable, which Executive may, alone or with
others, conceive, create, develop, produce or make during or as a result of his
employment with the Corporation (collectively, the “Invention”), free and clear
of any claims by Executive of any kind or character whatsoever other than
Executive’s rights to compensation under this Agreement.  Executive agrees that he shall disclose each
of the Inventions promptly and completely to the Corporation, and shall, at the
request of the Board, execute such assignments, certificates or other
instruments as the Board or the Corporation from time to time deem necessary or
desirable to evidence, establish, maintain, perfect, protect, enforce or defend
the Corporation’s right, title and interest in or to any or all of the
Inventions.  Executive agrees that he is
bound by the terms of a certain Employee Agreement on Ideas, Inventions, and
Confidential Information, to be signed on his first day of employment (the
“Inventions Agreement”), which shall continue in full force and effect
according to its terms and nothing in this Agreement shall be interpreted or
construed as modifying the Inventions Agreement.  To the extent that there is any conflict between the provisions
of this Section and the provisions of the Inventions Agreement, the provisions
of the Inventions Agreement shall govern.

 

8.                                       Non-Disclosure of Confidential Information.

 

a.                                       Executive acknowledges that, in and as a
result of his employment by the Corporation, he will be making use of,
acquiring and/or adding to the Corporation’s Confidential Information (as
hereinafter defined).  As a material
inducement to the Corporation to employ Executive and to pay Executive the
compensation and benefits set forth in this Agreement, Executive covenants and
agrees that he shall not, at any time during or following the term of his
employment with the Corporation, directly or indirectly divulge or disclose for
any purposes whatsoever, any Confidential Information that has been obtained
by, or disclosed to, him as a result of his employment with the

 

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Corporation.  For purposes of
this Agreement, “Confidential Information” means, collectively, all
confidential matters and materials of the Corporation, including without
limitation, (i) the Corporation’s proprietary information, inventions, trade
secrets, knowledge, data, know-how, intellectual property, systems, procedures,
manuals, pricing policies, operational methods and information relating to the
Corporation’s products, processes, formulae, business plans, marketing plans
and strategies, pricing strategies, customer lists, and all other subject
matters pertaining to the business and/or financial affairs of the Corporation;
(ii) the Corporation’s information regarding plans and strategies for research,
development, new products, future business plans, budgets and unpublished
financial statements, licenses, prices and costs; (iii) information regarding
the skills and compensation of other employees of the Corporation; and (iv)
information disclosed in confidence to the Corporation by a third party with a
duty on the Corporation to maintain the confidentiality of such
information.  The term “Confidential
Information” shall not include any information that (x) has been made available
generally to the public either by the Corporation or by a third party with the
Corporation’s consent, unless such information became available as a result of
any action by Executive in violation of this Agreement, any other agreement, or
her obligations under law, or (y) has been made available as a result of a
final award, order, or ruling by an arbitration tribunal or a court of competent
jurisdiction that has determined that such Confidential Information may be
disclosed.

 

b.                                      If Executive is required by a court,
arbitration tribunal, or governmental agency (by oral questions,
interrogatories, requests for information or documents, subpoena, civil
investigation demand or similar process) to disclose any Confidential
Information, Executive may disclose such Information to such court, tribunal,
or agency without liability hereunder, provided, that Executive
first provides the Corporation with notice of any such requirement(s) as
promptly as practicable, but in any case with sufficient timeliness to enable
the Corporation to seek an appropriate protective order and/or waive its
compliance with the relevant provisions of this Agreement.

 

9.                                       Covenants Against Competition.

 

a.                                       Non-Solicitation of Employees. 
While employed by the Corporation and for a period of six (6) months,
followed by a second period of six (6) months, for a total period of twelve
(12) months, from the date of termination of Executive’s
Employment Term with the Corporation for any reason, Executive shall not
directly or indirectly solicit, induce or encourage any of the Corporation’s
employees (except Marcia Passavant, in the event she is employed by the
Corporation) to terminate their employment with the Corporation or to accept
employment with any competitor, supplier, client, agent or broker of the
Corporation, nor shall Executive cooperate with any others in doing or
attempting to do so.  As used in this
paragraph, the term “solicit, induce or encourage” includes, but is not limited
to, (i) initiating communications with any employee of the Corporation relating
to possible employment or independent contractor relationship, (ii) offering
bonuses or additional compensation to encourage any employee of the Corporation
to terminate his or her employment with the Corporation and accept employment
with a competitor, supplier, client, agent or broker of the Corporation, or
(iii)

 

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referring any employee of
the Corporation to recruiters, personnel or agents employed by competitors,
suppliers, clients, agents or brokers of the Corporation.

 

b.                                      Non-Compete.  While Executive is employed
by the Corporation and for a period of six (6) months, followed by a second
period of six (6) months, for a total period of twelve (12) months, from the date of termination of Executive’s Employment Term for any
reason, Executive shall not directly or indirectly, as a principal, agent,
contractor, employee, employer, partner, shareholder or in any other capacity
engage in or perform any managerial or executive services (a) for any
corporation, partnership, individual or entity (i) which is engaged in a
business competitive with the Corporation or affiliate of the Corporation in
any state where Executive had any duties or responsibilities while working or
performing services for the Corporation, (ii) which is a competitor of the
Corporation or affiliate of the Corporation, or (iii) which is engaged in a
business competitive with the Corporation or affiliate of the Corporation
within 50 miles of any laboratory or facility owned or operated by the
Corporation or affiliate of the Corporation in the United States, or (b) to any
customer of the Corporation or affiliate of the Corporation

 

c.                                       For the purposes of this Agreement:

 

(i)                                     The term “engaged in a business competitive
with the Corporation” means directly or indirectly engaging in the business of
pharmacogenomics or in the same or any similar business as the Corporation or
any of its affiliates in any manner whatsoever, including without limitation as
a proprietor, partner, investor, shareholder, member, director, officer,
employee, consultant, independent contractor or otherwise, within any
geographic area in which the Corporation’s products or services are offered or
distributed;

 

(ii)                                  The term “affiliate” means any legal entity
that directly or indirectly through one or more intermediaries controls, is
controlled by, or is under common control with the Corporation; and

 

(iii)                               The term “customer” means any business,
company, person, and any other entity to whom the Corporation or any of its
affiliates has provided any product or service, whether or not for
compensation, within a period of two (2) years prior to the time Executive
ceases to be employed by the Corporation.

 

d.                                      Exclusion for Investments. 
None of the provisions of this Section 9 shall prohibit Executive from
investing in securities listed on a national securities exchange or actively
traded over-the-counter so long as such investments are not greater than five
percent (5%) of the outstanding securities of any issuer of the same class or
issue.

 

10.                                 Reasonableness of Restrictions.

 

a.                                       Executive has carefully read and considered
the provisions of Section 8 and Section 9, and, having done so,
agrees that:

 

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(i)                                     The restrictions set forth in Section 8 and
Section 9, including but not limited to the character, duration, and
geographical area of restriction, are fair and reasonable and are reasonably
required for the protection of the good will and other legitimate business
interests of the Corporation and its affiliates, officers, directors,
shareholders, and other employees;

 

(ii)                                  Executive has received adequate consideration
for such obligations; and

 

(iii)                               Such obligations do not prevent Executive
from earning a livelihood.

 

b.                                      If, notwithstanding the foregoing, any of the
provisions of Section 8 or Section 9 shall be held to be invalid or
unenforceable, the remaining provisions thereof shall nevertheless continue to
be valid and enforceable as though the invalid and unenforceable parts had not
been included therein.  If any provision
of Section 8 or Section 9 is determined by a court of competent jurisdiction
that the character, duration, geographical scope, or related aspects are
unreasonable in light of the circumstances as they then exist, then it is the
intention of the parties that Section 8 and/or Section 9 shall be construed by
the court in such a manner as to impose only those restrictions on the conduct
of Executive that are reasonable in light of the circumstances as they then
exist and as are necessary to assure the Corporation of the intended benefit of
this Agreement and such restrictions, as so modified, shall become and
thereafter be the maximum restriction in such regard, and the restriction shall
remain enforceable to the fullest extent deemed reasonable by such court.

 

11.                                 Remedies for Breach of Executive’s Covenants
of Non-Disclosure and Non-Competition.  Executive recognizes and
agrees that the Corporation’s remedy at law for any breach of Section 8 or
Section 9 would be inadequate as such a breach would cause irreparable harm to
the Corporation, and he agrees that, for any actual or threatened breach of
such provisions, the Corporation shall, in addition to such other remedies as
may be available to it at law or in equity, be entitled to injunctive relief
and to enforce its rights by an action for specific performance.  All of the Corporation’s remedies for any
breach of this Agreement shall be cumulative and the pursuit of any one remedy
shall not exclude the Corporation’s pursuit of any other remedies.

 

12.                                 Termination and Severance.

 

a.                                       Death.  In the event that Executive
dies during the Employment Term, this Agreement shall terminate automatically
upon his death, upon which event Executive’s legal representatives shall be
entitled to receive, and the Corporation shall pay or cause to be paid to
Executive’s legal representatives, any Base Salary and other compensation or
benefits accrued but as yet unpaid on the date of Executive’s death.

 

b.                                      Incapacity or Disability.  If
during the Employment Term, Executive is prevented from performing the duties
or fulfilling responsibilities of his employment

 

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under this Agreement by
reason of any incapacity or disability for a continuous period of six (6)
months, as determined by an independent qualified physician selected by the
Corporation and reasonably acceptable to Executive (or his representative),
then the Corporation may terminate Executive’s employment hereunder, but
Executive shall continue to be eligible to receive any benefits to which he may
be entitled under the terms of any long-term disability plan or insurance
policy maintained by the Corporation for its employees.  In the event of such incapacity or
disability, the Corporation shall continue to pay full compensation to
Executive in accordance with the terms of this Agreement until the date of such
termination.

 

c.                                       By Corporation for Cause.  The
Corporation may, upon written notice to Executive, terminate Executive’s
employment hereunder For Cause; provided that the Corporation shall first
provide Executive with an opportunity to be heard by the Board on any proposed
termination for cause by the Board.  For
purposes of this Agreement, the term “For Cause” shall mean (i) Executive’s
material breach of this Agreement; (ii) Executive’s material failure to adhere
to any policy of the Corporation generally applicable to  employees of the Corporation if Executive
has been given a reasonable opportunity to comply with such policy or cure his
failure to comply; (iii) Executive’s appropriation (or attempted appropriation)
of a business opportunity of the Corporation, including attempting to secure or
securing any personal profit in connection with any transaction entered into on
behalf of the Corporation; (iv) Executive’s misappropriation (or attempted
misappropriation) of any of the Corporation’s funds or property; (v)
Executive’s conviction of, or the entering of a guilty plea or plea of no
contest with respect to, a felony, the equivalent thereof, or any other crime
with respect to which imprisonment is a possible punishment or of a lesser
crime having as its predicate element fraud, dishonesty or misappropriation of
property of the Corporation; (vi) Executive’s willful misconduct or
insubordination; (vii) Executive’s physical or mental disability or other
inability to perform the essential functions of her position, with or without
reasonable accommodation, if Executive is not eligible for the benefits in
Section 12(b); (viii) Executive’s engaging in bad faith or gross negligence in
the performance of  his duties under
this Agreement as determined in good faith by the Board; or (ix) any other
conduct of Executive sufficiently detrimental to the Corporation so as to
warrant immediate termination of Executive’s employment with the Corporation.

 

In the event of
termination For Cause of Executive’s employment, Executive’s right to receive
compensation and other benefits hereunder (other than any Base Salary and any
vacation accrued but as yet unpaid on the effective date of such termination)
shall terminate on the effective date of such termination, and Executive shall
not be entitled to any severance payments or other benefits.

 

d.                                      Termination by the Corporation without Cause.  The
Corporation may elect to terminate Executive’s employment at any time without
cause upon written notice to Executive. 
In the event of such termination without cause, Executive shall be
entitled to a severance payment in an amount equal to 125% of Executive’s Base
Salary as of the date of termination, such payment to be made in equal
installments over a twelve (12) month period on the Corporation’s usual pay
periods.

 

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e.                                       Nonrenewal of Agreement.  The
Corporation may elect to not renew or extend this Agreement at any time without
cause upon written notice to Executive not later than thirty (30) days prior to
the end of any Initial Term or any extended Employment Term.  In the event of a nonrenewal or
non-extension pursuant to this Paragraph, Executive’s rights to receive
compensation and other benefits (other than any Base Salary and vacation
accrued but as yet unpaid on the effective date of such termination) shall
terminate at the expiration of the Initial Term or Employment Term.  In the event of such termination, Executive
shall be entitled to a severance payment following the end of such Initial Term
or Employment Term in an amount equal to 125% of Executive’s Base Salary as of
the date of termination, such payment to be made in equal installments over a
twelve (12) month period on the Corporation’s usual pay periods.

 

f.                                         By Executive for Certain Reasons. 
Executive may, at his option, upon at least thirty (30) days written
notice to the Corporation, terminate his employment hereunder, if the
Corporation, without Executive’s express written consent, (i) removes him as an
officer of the Corporation, (ii) demotes him from CFO, (iii) assigns him duties
materially inconsistent with the position and/or duties described in Sections 1
or 2, (iv) materially diminishes his responsibilities and/or duties described
in Sections 1 or 2, (v) breaches any material obligations to Executive under
this Agreement, or (vi) the Corporation moves to a new location more than
thirty-five (35) miles from its existing location at 5 Science Park, New Haven,
Connecticut.  Upon any termination by
Executive under this Paragraph the Corporation shall be obligated to pay
Executive the severance payments specified in Section 12(d).

 

g.                                      By Executive Following Change of Control. 
Executive may, at his option, upon thirty (30) days written notice to
the Corporation, terminate his employment hereunder for Good Reason (as
hereinafter defined) following a Change of Control of the Corporation.  Upon any termination by Executive under this
Paragraph, the Corporation shall be obligated to pay Executive a severance
payment in an amount equal to 150% of Executive’s Base Salary as of the date of
termination, such payment to be made in equal installments over an eighteen
(18) month period on the Corporation’s usual pay periods.

 

h.                                      Good Reason Defined.  For
purposes of this Agreement, the term “Good Reason” means, during the twelve
(12) month period following a Change of Control, without Executive’s express
written consent, the occurrence of any of the following circumstances:

 

(i)                                     the assignment to Executive of any duties
inconsistent (except in the nature of a promotion) with the position in the
Corporation that he held immediately prior to the Change of Control or
substantial adverse alteration in the nature or status of his position or
responsibilities or the conditions of his employment from those in effect
immediately prior to the Change of Control;

 

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(ii)                                  a reduction, other than a de minimis
reduction, by the Corporation in Executive’s annual Base Salary as in effect on
the date hereof, as the same may be increased from time to time;

 

(iii)                               the failure by the Corporation to continue in
effect any material compensation or benefit plan in which Executive
participates immediately prior to the Change of Control unless an equitable
arrangement (embodied in an ongoing substitute or alternative plan) has been
made with respect to such plan, or the failure by the Corporation to continue
Executive’s participation therein (or in such substitute or alternative plan)
on a basis not materially less favorable, both in terms of the amount of
benefits provided and the level of his participation relative to other
participants, than existed immediately prior to the Change of Control; or

 

(iv)                              the failure by the Corporation or its
successor or any surviving entity to maintain Executive as the Chief Financial
Officer of the top level operating company affiliated with the Corporation or
its successor or surviving entity.

 

i.                                          Change of Control Defined.  For
purposes of this Agreement, a “Change of Control” shall be deemed to have
occurred if the transaction is of a nature that would be required to be
reported in response to Item l(a) of the Current Report on Form 8-K, as in
effect on January 1, 2003, pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 (the “Exchange Act”); provided that, without limitation, such a
“Change in Control” shall be deemed to have occurred if: (i) a third Person,
including a “group” as such term is used in Section 13(d)(3) of the Exchange
Act, other than the trustee of any employee benefit plan of the Corporation,
becomes the beneficial owner, directly or indirectly, of 35% or more of the
combined voting power of the Corporation’s outstanding voting securities
ordinarily having the right to vote for the election of directors of the
Corporation; (ii) during any period of twenty-four (24) consecutive months
individuals who, at the beginning of such consecutive twenty-four (24) month
period, constitute the Board of Directors of the Corporation (the “Board”) cease
for any reason (other than retirement upon reaching normal retirement age,
disability, or death) to constitute at least a majority of the Board; provided
that any person becoming a director subsequent to the date hereof whose
election, or nomination for election by the Corporation’s shareholders, was
approved by a vote of at least three quarters of the directors comprising the
Incumbent Board shall be, for purposes of this Agreement, considered as though
such person were a member of the Incumbent Board; or (iii) the Corporation
shall cease to be a publicly owned corporation having its outstanding Common
Stock listed on the New York Stock Exchange or quoted in the NASDAQ National or
Small Cap Market System, except where the delisting is related to a private
purchase of the Corporation’s stock by a group consisting of the Corporation’s
current officers.

 

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For
these purposes, a “Change of Control” also shall not be deemed to have occurred
where with respect to any transaction otherwise constituting a “Change of
Control,” the Corporation’s CEO and CFO are reasonably expected to maintain
their existing positions with the Corporation.

 

For
these purposes, Incumbent Board means the Board as in existence twenty-four
(24) months prior to the date the action is being considered.  Notwithstanding the foregoing, if the
Incumbent Board specifically determines that any transaction does not
constitute a Change of Control for purposes of this Agreement such
determination shall be conclusive and binding.

 

j.                                          Person Defined.  For
purposes of this Agreement, the term “Person” means any individual,
corporation, association, partnership, limited partnership, limited liability
company, limited liability partnership, organization, business, joint venture,
sole proprietorship, governmental agency, entity or subdivision or other entity
of any kind or nature.

 

k.                                       Voluntary Termination by Executive. 
Executive may, at his option, upon sixty (60) days prior written notice
to the Corporation, terminate his employment hereunder.  In the event of a voluntary termination of
his employment by the Executive pursuant to this Paragraph, Executive’s rights
to receive compensation and other benefits (other than any Base Salary and
vacation accrued but as yet unpaid on the effective date of such termination)
shall terminate on the effective date of such termination, and Executive shall
not be entitled to any severance payments or other benefits.

 

l.                                          Eligibility
for Severance; Requirement of Release. 
Except as provided in Sections 12(d), 12(e), 12(f), and 12(g), Executive
shall not be eligible for or entitled to any severance payments in the event of
termination of his employment hereunder. 
No severance shall be paid under this Agreement unless Executive first
executes and agrees to be bound by a release of all claims, on a form provided
by the Corporation, which releases any and all claims that Executive has or
might have against the Corporation and which contains terms customary in such
agreements.

 

m.                                    Resignation.  In the event of termination
of  his employment other than for death,
Executive shall be deemed to have resigned from all positions held in the
Corporation, including without limitation any position as a director, officer,
agent, trustee, or consultant of the Corporation or any affiliate of the
Corporation.  Upon request of the
Corporation, Executive shall promptly sign and deliver to the Corporation any
and all documents reflecting such resignations as of the date of termination of
her employment.

 

13.                                 Vesting upon Change in Control.  Any
stock options and restricted stock granted to Executive by the Corporation
shall accelerate and immediately vest upon the occurrence of the following
events: if (a) any “person,” as such term is used in Sections 13(d) and 14(e)
of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”)
(other than the Corporation, any trustee or other fiduciary holding securities
under an employee benefit plan of the Corporation, or any corporation owned directly
or indirectly by the stockholders of the

 

11

 

Corporation in substantially the same
proportion as their ownership of stock in the Corporation) is or becomes the
“Beneficial Owner” (as defined in Rule 13d-3 under the Exchange Act), directly
or indirectly, of securities of the Corporation representing 50% or more of the
combined voting power of the Corporation’s then outstanding securities (other
than as a result of acquisitions of such securities from the Corporation); (b)
individuals who, as of the date hereof, constitute the Board of Directors of
the Corporation (the “Incumbent Board”) cease for any reason to constitute at
least a majority of the Board, provided that any person becoming a director after
the date hereof whose election, or nomination for election by the Corporation’s
stockholders, was approved by a majority of the directors then comprising the
Incumbent Board (other than an election or nomination of an individual whose
initial assumption of office is in connection with an actual or threatened
election contest relating to the election of the directors of the Corporation)
shall be, for purposes of this Agreement, considered to be a member of the
Incumbent Board; (c) the stockholders of the Corporation approve a merger or
consolidation of the Corporation with any other corporation, other than (i) a
merger or consolidation that would result in the voting securities of the
Corporation outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting securities
of the surviving entity) more than 50% of the combined voting power of the
voting securities of the Corporation or such surviving entity outstanding
immediately after such merger or consolidation or (ii) a merger or
consolidation effected to implement a recapitalization of the Corporation (or
similar transaction) in which no “person” (as defined above, acquires more than
20% of the combined voting power of the Corporation’s then outstanding
securities; or (d) the stockholders of the Corporation approve a plan of
complete liquidation of the Corporation or an agreement for the sale or
disposition of the Corporation of all or substantially all of the Corporation’s
assets.

 

14.                                 Payment or Benefit in Connection with Change
in Control.

 

a.                                       Notwithstanding any other provision of this
Agreement, in the event that any payment or benefit received or to be received
by the Executive (i) is deemed to be in connection with a Change in Control (whether
payable pursuant to the terms of this Agreement or any other plan, arrangement
or agreement with the Corporation, its successors, any person whose actions
result in a Change in Control or any corporation (“Affiliates”) affiliated (or
which, as a result of the completion of the transactions causing a Change in
Control will become affiliated) with the Corporation within the meaning of
Section 1504 of the Internal Revenue Code of 1986, as amended (the “Code”)
(collectively with the payments and benefits pursuant to this Agreement if
deemed to be paid pursuant to a Change in Control, “Total Payments”) and (ii)
is determined by the Corporation’s independent certified accounting firm (the
“Tax Advisor”) that such amount exceeds 2.99 times the base amount (as such
term is defined under Section 280G(b)(3) of the Code) but that is less than 4
times the base amount and that an excise tax is payable by Executive under
Section 4999 of the Code, then the amount of payments to the Executive shall be
reduced so that the payments do not exceed the limits then set forth in Section
280G of the Code.

 

b.                                    Notwithstanding
any other provisions of this Agreement or the provisions

 

12

 

of Section (a) above, in the event that the Total
Payments received or to be received by Executive in connection with a Change in
Control would be subject (in whole or part), to an excise tax pursuant to
Section 4999 of the Code (such tax hereinafter referred to as the “Excise Tax”)
because the amount of the Total Payments equals or exceeds four (4) times the
base amount (as such term is defined under Section 280G(b)(3) of the Code),
then the Total Payments shall be grossed up to the extent necessary to reflect
any Excise Taxes due by Executive and the income taxes attributable thereto so
that the Executive will be entitled to a net amount equal to the Total Payments
(the “Grossed-Up Payment”).  For
purposes of determining whether and the extent to which the Total Payments will
be subject to the Excise Tax, (i) no portion of the Total Payments the receipt
or enjoyment of which Executive shall have effectively waived in writing prior
to the date of this termination of employment shall be taken into account, (ii)
no portion of the Total Payments shall be taken into account which in the
opinion of tax counsel selected by Corporation does not constitute a “parachute
payment” within the meaning of Section 280G(b)(2) of the Code, (including by
reason of Section 280(b)(4)(A) of the Code) and, in calculating the Excise Tax,
no portion of such Total Payment shall be taken into account which constitutes
reasonable compensation for services actually rendered, within the meaning of
Section 280G(b)(4)(B) of the Code, in excess of the base amount as defined in
Section 280G(b)(3) of the Code allowable to such reasonable compensation, and
(iii) the value of any non-cash benefit or any deferred payment or benefit
included in the Total Payments shall be determined by Corporation in accordance
with the principles of Sections 280G(d)(3) and (4) of the Code.  Prior to the thirtieth day following the
date of Executive’s termination of employment, Corporation shall provide
Executive with its calculation of the amounts referred to in this Section and
such supporting materials as are reasonably necessary for Executive to evaluate
Corporation’s calculations but the Corporation’s calculations shall be used for
purposes of any payments pursuant to this Section.

 

c.                                       If
the Corporation’s Tax Advisor determines that the Total Payments received or to
be received by Executive fall under subparagraph (a) above and upon audit by
the Internal Revenue Service the IRS determines that an Excise Tax is due and
payable due to the amount of the Total Payments received by Executive, then the
Corporation agrees to make a Grossed-Up Payment calculated in the same manner
as provided in subparagraph (b).

 

d.                                      In the event of any IRS audit
concerning to the Total Payments payable or paid to Executive, the Corporation
may in its sole discretion choose to respond to the audit.  If the Corporation chooses not to respond,
then it shall be the sole responsibility of Executive to respond to the audit.

 

15.                                 Waiver.  A party’s failure to insist
on compliance or enforcement of any provision of this Agreement shall not
affect the validity or enforceability or constitute a waiver of future
enforcement of that provision or of any other provision of this Agreement by
that party or any other party.

 

13

 

16.                                 Governing Law. 
This Agreement shall in all respects be subject to, and governed by, the
laws of the State of Connecticut without reference to its conflict of laws

 

17.                                 Severability.  The
invalidity or unenforceability of any provision in the Agreement shall not in
any way affect the validity or enforceability of any other provision and this
Agreement shall be construed in all respects as if such invalid or
unenforceable provision had never been in the Agreement.

 

18.                                 Notice.  Any and all notices required
or permitted herein shall be in writing and shall be deemed to have been duly
given (a) when delivered if delivered personally, (b) on the fifth
day following the date of deposit in the United States mail if sent first
class, postage prepaid, or by certified mail, or (c) one day after
delivery to a nationally recognized overnight courier service.  The parties’ respective addresses for such
notices shall be those set forth below, or such other address or addresses as
either party may hereafter designate in writing to the other.

 

	
  If to the Corporation:

  	
  Genaissance
  Pharmaceuticals, Inc.

  
	
   

  	
  Five Science Park, Suite
  2103

  
	
   

  	
  New Haven, CT  06511-1966

  
	
   

  	
  Attention: Kevin Rakin

  
	
   

  	
  Facsimile No.: (203)
  492-4473

  
	
   

  	
   

  
	
  With a copy to:

  	
  Robinson & Cole LLP

  
	
   

  	
  280 Trumbull Street

  
	
   

  	
  Hartford, CT 06103-3597

  
	
   

  	
  Attention: Felicia
  DeDominicis, Esq.

  
	
   

  	
  Facsimile No.: (860)
  275-8299

  
	
   

  	
   

  
	
  If to Employee:

  	
  Ben D. Kaplan

  
	
   

  	
  527 Mountain Road

  
	
   

  	
  West Hartford, CT 06117

  

 

19.                                 Assignment.  This Agreement shall inure to
the benefit of, and shall be binding upon, the parties hereto and their
respective successors, assigns, heirs, and legal representatives, including any
entity with which the Corporation may merge or consolidate or to which all or
substantially all of its assets may be transferred.  The duties and covenants of Executive under this Agreement, being
personal, may not be delegated.

 

20.                                 Amendments.  This Agreement may be amended
at any time by mutual consent of the parties hereto, with any such amendment to
be invalid unless in writing and signed by the Corporation and Executive and
expressly referring to this Agreement.

 

21.                                 Entire Agreement. 
This Agreement contains the entire agreement and understanding by and
between Executive and the Corporation with respect to the employment of
Executive and supersedes all existing agreements between the Corporation and
Executive with respect to such subject matter. 
No representations, promises, agreements, or understandings, written or
oral, relating to the employment of Executive by the Corporation, or any of its
officers,

 

14

 

directors, employees, or agents, not
contained herein shall be of any force or effect, provided that, Sections 5, 6,
7, 8, and 9 shall be supplemental to any other agreement of Executive with the
Corporation related to the matters identified therein.

 

22.                                 No Undue Influence; Construction. 
This Agreement is executed voluntarily and without any duress or undue
influence.  Executive acknowledges that
he has read this Agreement and executed it with his full and free consent.  No provision of this Agreement shall be
construed against any party by virtue of the fact that such party or its
counsel drafted such provision or the entirety of this Agreement.

 

23.                                 References to Gender and Number Terms.  In
construing this Agreement, feminine or number pronouns shall be substituted for
those masculine in form and vice versa, and plural terms shall be substituted
for singular and singular for plural in any place in which the context so
requires.

 

24.                                 Counterparts; Headings; Sections. 
This Agreement may be executed in multiple counterparts, each of which
shall be considered to have the force and effect of any original but all of
which taken together shall constitute but one and the same instrument.  The various headings in this Agreement are
inserted for convenience only and are not part of the Agreement.  All references to “Sections” and
“Paragraphs” in this Agreement refer to the various corresponding sections and
paragraphs of this Agreement.

 

25.                                 Survival.  The covenants and agreements
contained in Sections 5 through 9 shall survive any termination of Executive’s
employment with the Corporation.

 

26.                                 Arbitration.  Executive and the Corporation
shall submit any disputes arising under this Agreement to an arbitration panel
conducting a binding arbitration in Hartford, Connecticut or at such other
location as may be agreeable to the parties, in accordance with the National
Rules for the Resolution of Employment Disputes of the American Arbitration
Association in effect on the date of such arbitration (the “Rules”), and
judgment upon the award rendered by the arbitrator or arbitrators may be
entered in any court having jurisdiction thereof; provided, however,
that nothing herein shall impair the Corporation’s right to seek equitable
relief for any breach or threatened breach of Section 8 or Section 9.  The award of the arbitrators shall be final
and shall be the sole and exclusive remedy between the parties regarding any claims,
counterclaims, issues or accountings presented to the arbitration panel.  The parties hereto further agree that the
arbitration panel shall consist of one (1) person mutually acceptable to
the Corporation and Executive, provided that if the parties cannot agree
on an arbitrator within thirty (30) days of filing a notice of arbitration, the
arbitration panel shall consist of three (3) persons, one selected by the
Corporation, one selected by Executive (or his representative) and one selected
by the arbitrators so selected by the parties hereto, or if the parties hereto
cannot agree, selected by the manager of the principal office of the American
Arbitration Association in Hartford County in the State of Connecticut.  Each party will pay for the fees and
expenses of its own attorneys, experts, witnesses, and preparation and
presentation of proofs and post-hearing briefs (unless the party prevails on a
claim for which attorney’s fees and expenses are recoverable under the Rules
and those amounts are included as part of the award).  Any action to enforce or vacate the arbitrator’s award shall be
governed by the federal Arbitration Act, if applicable, and

 

15

 

otherwise by applicable state law.  If either the Corporation or Executive
pursues any claim, dispute or controversy against the other in a proceeding
other than the arbitration provided for herein, the responding party shall be
entitled to dismissal or injunctive relief regarding such action and recovery
of all costs, losses and attorney’s fees related to such action.  Executive acknowledges and expressly agrees
that this arbitration provision constitutes a voluntary waiver of trial by jury
in any action or proceeding to which Executive and the Corporation may be
parties arising out of or pertaining to this Agreement.

 

 

THE
NEXT PAGE IS THE SIGNATURE PAGE

 

16

 

IN WITNESS WHEREOF, the Corporation and Executive have duly executed this Agreement on
the dates set forth below.

 

	
   

  	
  CORPORATION:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GENAISSANCE
  PHARMACEUTICALS, INC.

  	
  WITNESS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kevin Rakin

  	
   

  	
  /s/ Jennifer Barretta

  
	
   

  	
  Name:  Kevin Rakin

  	
  Name:
  Jennifer Barretta

  
	
   

  	
  Its
  President and Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
  May 8, 2003

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  	
  WITNESS:

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Ben D. Kaplan

  	
   

  	
  /s/ Jennifer
  Barretta

  
	
   

  	
  Name:
  Ben D. Kaplan

  	
  Name:
  Jennifer Barretta

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
  May
  8, 2003

  	
   

  	
   

  
									

 

17Exhibit 4.4

 

 

 

AMYLIN PHARMACEUTICALS, INC.

 

ISSUER

 

TO

 

J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION,

 

TRUSTEE

 

 

INDENTURE

 

Dated as of June 23, 2003

 

 

2.25% CONVERTIBLE SENIOR NOTES DUE June 30, 2008

 

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  	
  DEFINITIONS AND OTHER
  PROVISIONS OF GENERAL APPLICATION

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 1.1

  	
  Definitions.

  
	
   

  	
  SECTION 1.2

  	
  Compliance Certificates
  and Opinions.

  
	
   

  	
  SECTION 1.3

  	
  Form of Documents
  Delivered to the Trustee.

  
	
   

  	
  SECTION 1.4

  	
  Acts of Holders of
  Securities.

  
	
   

  	
  SECTION 1.5

  	
  Notices, Etc. to the
  Trustee and Company.

  
	
   

  	
  SECTION 1.6

  	
  Notice to Holders of
  Securities; Waiver.

  
	
   

  	
  SECTION 1.7

  	
  Effect of Headings and
  Table of Contents.

  
	
   

  	
  SECTION 1.8

  	
  Successors and Assigns.

  
	
   

  	
  SECTION 1.9

  	
  Separability Clause.

  
	
   

  	
  SECTION 1.10

  	
  Benefits of Indenture.

  
	
   

  	
  SECTION 1.11

  	
  Governing Law.

  
	
   

  	
  SECTION 1.12

  	
  Legal Holidays.

  
	
   

  	
  SECTION 1.13

  	
  Conflict with Trust
  Indenture Act.

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  SECURITY FORMS

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.1

  	
  Form Generally.

  
	
   

  	
  SECTION 2.2

  	
  Form of Security.

  
	
   

  	
  SECTION 2.3

  	
  Form of Certificate of
  Authentication.

  
	
   

  	
  SECTION 2.4

  	
  Form of Conversion
  Notice.

  
	
   

  	
  SECTION 2.5

  	
  Form of Assignment.

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  THE SECURITIES

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.1

  	
  Title and Terms.

  
	
   

  	
  SECTION 3.2

  	
  Denominations.

  
	
   

  	
  SECTION 3.3

  	
  Execution,
  Authentication, Delivery and Dating.

  
	
   

  	
  SECTION 3.4

  	
  Global Securities;
  Non-Global Securities; Book-entry Provisions.

  
	
   

  	
  SECTION 3.5

  	
  Registration;
  Registration of Transfer and Exchange; Restrictions on Transfer.

  
	
   

  	
  SECTION 3.6

  	
  Mutilated, Destroyed,
  Lost or Stolen Securities.

  
	
   

  	
  SECTION 3.7

  	
  Payment of Interest;
  Interest Rights Preserved.

  
	
   

  	
  SECTION 3.8

  	
  Persons Deemed Owners.

  
	
   

  	
  SECTION 3.9

  	
  Cancellation.

  
	
   

  	
  SECTION 3.10

  	
  Computation of
  Interest.

  
	
   

  	
  SECTION 3.11

  	
  CUSIP Numbers.

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  SATISFACTION AND DISCHARGE

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 4.1

  	
  Satisfaction and
  Discharge of Indenture.

  
	
   

  	
  SECTION 4.2

  	
  Application of Trust
  Money.

  
				

 

i

 

	
  ARTICLE V

  	
  REMEDIES

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 5.1

  	
  Events of Default.

  
	
   

  	
  SECTION 5.2

  	
  Acceleration of
  Maturity; Rescission and Annulment.

  
	
   

  	
  SECTION 5.3

  	
  Collection of
  Indebtedness and Suits for Enforcement by Trustee.

  
	
   

  	
  SECTION 5.4

  	
  Trustee May File
  Proofs of Claim.

  
	
   

  	
  SECTION 5.5

  	
  Trustee May Enforce
  Claims Without Possession of Securities.

  
	
   

  	
  SECTION 5.6

  	
  Application of Money
  Collected.

  
	
   

  	
  SECTION 5.7

  	
  Limitation on Suits.

  
	
   

  	
  SECTION 5.8

  	
  Unconditional Right of
  Holders to Receive Principal, Premium and Interest and to Convert.

  
	
   

  	
  SECTION 5.9

  	
  Restoration of Rights
  and Remedies.

  
	
   

  	
  SECTION 5.10

  	
  Rights and Remedies
  Cumulative.

  
	
   

  	
  SECTION 5.11

  	
  Delay or Omission Not
  Waiver.

  
	
   

  	
  SECTION 5.12

  	
  Control by Holders of
  Securities.

  
	
   

  	
  SECTION 5.13

  	
  Waiver of Past
  Defaults.

  
	
   

  	
  SECTION 5.14

  	
  Undertaking for Costs.

  
	
   

  	
  SECTION 5.15

  	
  Waiver of Stay, Usury
  or Extension Laws.

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  THE TRUSTEE

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 6.1

  	
  Certain Duties and
  Responsibilities.

  
	
   

  	
  SECTION 6.2

  	
  Notice of Defaults.

  
	
   

  	
  SECTION 6.3

  	
  Certain Rights of
  Trustee.

  
	
   

  	
  SECTION 6.4

  	
  Not Responsible for
  Recitals or Issuance of Securities.

  
	
   

  	
  SECTION 6.5

  	
  May Hold
  Securities, Act as Trustee Under Other Indentures.

  
	
   

  	
  SECTION 6.6

  	
  Money Held in Trust.

  
	
   

  	
  SECTION 6.7

  	
  Compensation and
  Reimbursement.

  
	
   

  	
  SECTION 6.8

  	
  Corporate Trustee
  Required; Eligibility.

  
	
   

  	
  SECTION 6.9

  	
  Resignation and Removal;
  Appointment of Successor.

  
	
   

  	
  SECTION 6.10

  	
  Acceptance of
  Appointment by Successor.

  
	
   

  	
  SECTION 6.11

  	
  Merger, Conversion,
  Consolidation or Succession to Business.

  
	
   

  	
  SECTION 6.12

  	
  Authenticating Agents.

  
	
   

  	
  SECTION 6.13

  	
  Disqualification;
  Conflicting Interests.

  
	
   

  	
  SECTION 6.14

  	
  Preferential
  Collection of Claims Against Company.

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  CONSOLIDATION, MERGER,
  CONVEYANCE, TRANSFER OR LEASE

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 7.1

  	
  Company
  May Consolidate, Etc. Only on Certain Terms.

  
	
   

  	
  SECTION 7.2

  	
  Successor Substituted.

  
				

 

ii

 

	
  ARTICLE VIII

  	
  SUPPLEMENTAL
  INDENTURES

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 8.1

  	
  Supplemental Indentures
  Without Consent of Holders of Securities.

  
	
   

  	
  SECTION 8.2

  	
  Supplemental Indentures
  with Consent of Holders of Securities.

  
	
   

  	
  SECTION 8.3

  	
  Execution of
  Supplemental Indentures.

  
	
   

  	
  SECTION 8.4

  	
  Effect of Supplemental
  Indentures.

  
	
   

  	
  SECTION 8.5

  	
  Reference in Securities
  to Supplemental Indentures.

  
	
   

  	
  SECTION 8.6

  	
  Notice of Supplemental
  Indentures.

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
  MEETINGS OF HOLDERS OF
  SECURITIES

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 9.1

  	
  Purposes for Which
  Meetings May Be Called.

  
	
   

  	
  SECTION 9.2

  	
  Call, Notice and Place
  of Meetings.

  
	
   

  	
  SECTION 9.3

  	
  Persons Entitled to Vote
  at Meetings.

  
	
   

  	
  SECTION 9.4

  	
  Quorum; Action.

  
	
   

  	
  SECTION 9.5

  	
  Determination of Voting
  Rights; Conduct and Adjournment of Meetings.

  
	
   

  	
  SECTION 9.6

  	
  Counting Votes and
  Recording Action of Meetings.

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
  COVENANTS

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 10.1

  	
  Payment of Principal,
  Premium and Interest.

  
	
   

  	
  SECTION 10.2

  	
  Maintenance of Offices
  or Agencies.

  
	
   

  	
  SECTION 10.3

  	
  Money for Security
  Payments to Be Held in Trust.

  
	
   

  	
  SECTION 10.4

  	
  Existence.

  
	
   

  	
  SECTION 10.5

  	
  Maintenance of
  Properties.

  
	
   

  	
  SECTION 10.6

  	
  Payment of Taxes and
  Other Claims.

  
	
   

  	
  SECTION 10.7

  	
  Registration and
  Listing.

  
	
   

  	
  SECTION 10.8

  	
  Statement by Officers
  as to Default.

  
	
   

  	
  SECTION 10.9

  	
  Delivery of Certain
  Information.

  
	
   

  	
  SECTION 10.10

  	
  Resale of Certain
  Securities.

  
	
   

  	
  SECTION 10.11

  	
  Registration Rights.

  
	
   

  	
  SECTION 10.12

  	
  Waiver of Certain
  Covenants.

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
  REDEMPTION OF SECURITIES

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 11.1

  	
  Right of Redemption.

  
	
   

  	
  SECTION 11.2

  	
  Applicability of
  Article.

  
	
   

  	
  SECTION 11.3

  	
  Election to Redeem;
  Notice to Trustee; Public Announcement.

  
	
   

  	
  SECTION 11.4

  	
  Selection by Trustee
  of Securities to Be Redeemed.

  
	
   

  	
  SECTION 11.5

  	
  Notice of Redemption.

  
	
   

  	
  SECTION 11.6

  	
  Deposit of Redemption
  Price.

  
	
   

  	
  SECTION 11.7

  	
  Securities Payable on
  Redemption Date.

  
				

 

iii

 

	
   

  	
  SECTION 11.8

  	
  Conversion Arrangement
  on Call for Redemption.

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII

  	
  CONVERSION OF SECURITIES

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 12.1

  	
  Conversion Privilege
  and Conversion Rate.

  
	
   

  	
  SECTION 12.2

  	
  Exercise of Conversion
  Privilege.

  
	
   

  	
  SECTION 12.3

  	
  Fractions of Shares.

  
	
   

  	
  SECTION 12.4

  	
  Adjustment of
  Conversion Rate.

  
	
   

  	
  SECTION 12.5

  	
  Notice of Adjustments
  of Conversion Rate.

  
	
   

  	
  SECTION 12.6

  	
  Notice of Certain
  Corporate Action.

  
	
   

  	
  SECTION 12.7

  	
  Company to Reserve
  Common Stock.

  
	
   

  	
  SECTION 12.8

  	
  Taxes on Conversions.

  
	
   

  	
  SECTION 12.9

  	
  Covenant as to Common
  Stock.

  
	
   

  	
  SECTION 12.10

  	
  Cancellation of
  Converted Securities.

  
	
   

  	
  SECTION 12.11

  	
  Provision in Case of
  Consolidation, Merger or Sale of Assets.

  
	
   

  	
  SECTION 12.12

  	
  Rights Issued in
  Respect of Common Stock.

  
	
   

  	
  SECTION 12.13

  	
  Responsibility of
  Trustee for Conversion Provisions.

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIII

  	
  REPURCHASE OF
  SECURITIES AT THE OPTION OF THE HOLDER UPON A CHANGE IN CONTROL

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 13.1

  	
  Right to Require
  Repurchase.

  
	
   

  	
  SECTION 13.2

  	
  Conditions to the
  Company’s Election to Pay the Repurchase Price in Common Stock.

  
	
   

  	
  SECTION 13.3

  	
  Notices; Method of
  Exercising Repurchase Right, Etc.

  
	
   

  	
  SECTION 13.4

  	
  Certain Definitions.

  
	
   

  	
  SECTION 13.5

  	
  Consolidation, Merger,
  etc.

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIV

  	
  HOLDERS LISTS AND
  REPORTS BY TRUSTEE AND COMPANY; NON-RECOURSE

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 14.1

  	
  Company to Furnish
  Trustee Names and Addresses of Holders.

  
	
   

  	
  SECTION 14.2

  	
  Preservation of
  Information.

  
	
   

  	
  SECTION 14.3

  	
  Reports by Trustee.

  
	
   

  	
  SECTION 14.4

  	
  Reports by Company.

  
	
   

  	
   

  	
   

  
	
  ARTICLE XV

  	
  IMMUNITY OF INCORPORATORS,
  STOCKHOLDERS, OFFICERS AND DIRECTORS

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 15.1

  	
  Indenture and
  Securities Solely Corporate Obligations.

  
				

 

iv

 

INDENTURE, dated as of June 23, 2003, between
AMYLIN PHARMACEUTICALS, INC., a corporation duly organized and existing under
the laws of the State of Delaware, having its principal office at 9373 Towne
Centre Drive, San Diego, California 92121 (herein called the “Company”),
and J.P. Morgan Trust Company, National Association, with offices at 560
Mission St., 13th Floor, San Francisco, California, 94111, as Trustee hereunder
(herein called the “Trustee”).

 

RECITALS OF THE COMPANY

 

The Company has duly
authorized the creation of an issue of its 2.25% Convertible Senior Notes due
June 30, 2008 (herein called the “Securities”) of substantially the
tenor and amount hereinafter set forth, and to provide therefor the Company has
duly authorized the execution and delivery of this Indenture.

 

All things necessary to
make the Securities, when the Securities are executed by the Company and
authenticated and delivered hereunder, the valid obligations of the Company,
and to make this Indenture a valid agreement of the Company, in accordance with
their and its terms, have been done. Further, all things necessary to duly
authorize the issuance of the Common Stock of the Company issuable upon the
conversion of the Securities, and to duly reserve for issuance the number of
shares of Common Stock issuable upon such conversion, have been done.

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 

For and in consideration
of the premises and the purchase of the Securities by the Holders thereof, it
is mutually covenanted and agreed, for the equal and proportionate benefit of
all Holders of the Securities, as follows:

 

ARTICLE I

 

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

 

SECTION 1.1                                                  Definitions.

 

For all purposes of this
Indenture, except as otherwise expressly provided or unless the context
otherwise requires:

 

(1)                                the
terms defined in this Article have the meanings assigned to them in this
Article and include the plural as well as the singular;

 

(2)                                all
accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with generally accepted accounting principles in the United
States, and, except as otherwise herein expressly provided, the term “generally
accepted accounting principles” with respect to any computation required or
permitted hereunder shall mean such accounting principles as are generally
accepted at the date of such computation; and

 

(3)                                the
words “herein,” “hereof” and “hereunder” and other words of similar import
refer to this Indenture as a whole and not to any particular Article, Section
or other subdivision.

 

 

“Act,” when used
with respect to any Holder of a Security, has the meaning specified in Section
1.4.

 

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

 

“Agent Member”
means any member of, or participant in, the Depositary.

 

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

 

“Authenticating Agent”
means any Person authorized pursuant to Section 6.12 to act on behalf of the
Trustee to authenticate Securities.

 

“Board of Directors”
means either the board of directors of the Company or any duly authorized
committee of that board.

 

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

 

“Business Day,”
when used with respect to any Place of Payment, Place of Conversion or any
other place, as the case may be, means each Monday, Tuesday, Wednesday,
Thursday and Friday which is not a day on which banking institutions in such
Place of Payment, Place of Conversion or other place, as the case may be, are
authorized or obligated by law or executive order to close.

 

“Change in Control”
has the meaning specified in Section 13.4(2).

 

“Closing Price Per
Share” means, with respect to the Common Stock, for any day, (i) the
last reported sale price regular way on The Nasdaq National Market or,
(ii) if the Common Stock is not quoted on The Nasdaq National Market, the
last reported sale price regular way per share or, in case no such reported
sale takes place on such day, the average of the reported closing bid and asked
prices regular way, in either case, on the principal national securities
exchange on which the Common Stock is listed or admitted to trading,
(iii) if the Common Stock is not quoted on The Nasdaq National Market or
listed or admitted to trading on any national securities exchange, the average
of the closing bid and asked prices in the over-the-counter market as furnished
by any New York Stock Exchange member firm selected from time to time by the
Company for that purpose.

 

“Code” has the
meaning specified in Section 2.l.

 

2

 

“Commission” means
the United States Securities and Exchange Commission, as from time to time
constituted, created under the Exchange Act, or, if at any time after the
execution of this Indenture such Commission is not existing and performing the
duties now assigned to it under the Trust Indenture Act, then the body
performing such duties at such time.

 

“Common Stock”
means the Common Stock, par value $0.001 per share, of the Company authorized
at the date of this Indenture as originally executed or as such stock may be
constituted from time to time.  Subject
to the provisions of Section 12.11, shares issuable on conversion of
Securities shall include only shares of Common Stock or shares of any class or
classes of common stock resulting from any reclassification or
reclassifications thereof; provided, however, that if at any time there shall
be more than one such resulting class, the shares so issuable on conversion of
Securities shall include shares of all such classes, and the shares of each
such class then so issuable shall be substantially in the proportion which the
total number of shares of such class resulting from all such reclassifications
bears to the total number of shares of all such classes resulting from all such
reclassifications and, provided further, that all references to “Common Stock”
payable in connection with the purchase of Securities upon a Change in Control
in accordance with Section 13.2 or payable in connection with the redemption of
the Securities in accordance with Article XI shall be deemed to include common
stock of any entity, including the parent company of any such entity, that the
Company consolidates or merges with or into, that is merged into the Company,
or to which the Company sells or transfers all or substantially all of its
assets.

 

“common stock”
includes any stock of any class of capital stock which has no preference in
respect of dividends or of amounts payable in the event of any voluntary or
involuntary liquidation, dissolution or winding up of the issuer thereof, which
has unrestricted voting rights and which is not subject to redemption by the
issuer thereof.

 

“Company” means
the Person named as the “Company” in the first paragraph of this Indenture
until a successor Person shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter “Company” shall mean such
successor Person.

 

“Company Notice”
has the meaning specified in Section 13.3.

 

“Company Request”
or “Company Order” means a written request or order signed in the name
of the Company by an Officer of the Company or an Assistant Secretary, and
delivered to the Trustee.

 

“Constituent Person”
has the meaning specified in Section 12.11.

 

“Conversion Agent”
means any Person authorized by the Company to convert Securities in accordance
with Article XII. The Company has initially appointed the Trustee as its
Conversion Agent pursuant to Section 10.2 hereof.

 

“Conversion Price”
has the meaning specified in Section 13.4(3).

 

“Conversion Rate”
has the meaning specified in Section 12.1.

 

3

 

“Corporate Trust
Office” means the office of the Trustee at which at any particular time the
trust created by this Indenture shall be principally administered (which at the
date of this Indenture is located at 560 Mission Street, 13th Floor, San
Francisco, California, 94111, Attention: 
Institutional Trust Services, and for purposes of Section 10.2 shall
mean Institutional Trust Services Window, c/o J.P. Morgan Chase Bank, 4 New
York Plaza, 1st Floor, New York, New York 10004.

 

“corporation”
means a corporation, company, association, joint-stock company or business
trust.

 

“Defaulted Interest”
has the meaning specified in Section 3.7.

 

“Depositary”
means, with respect to any Securities (including any Global Securities), a
clearing agency that is registered as such under the Exchange Act and is
designated by the Company to act as Depositary for such Securities (or any
successor securities clearing agency so registered).

 

“Dollar” or “U.S.
$” means a dollar or other equivalent unit in such coin or currency of the
United States as at the time shall be legal tender for the payment of public
and private debts.

 

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

 

“Effective Failure”
has the meaning specified in Section 2.2.

 

“Effectiveness Period”
has the meaning specified in Section 2.2.

 

“Event of Default”
has the meaning specified in Section 5.1.

 

“Exchange Act”
means the United States Securities Exchange Act of 1934 (or any successor
statute), as amended from time to time.

 

“Global Security”
means a Security that is registered in the Security Register in the name of a
Depositary or a nominee thereof.

 

“Holder” means the
Person in whose name the Security is registered in the Security Register.

 

“Indenture” means
this Indenture as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered
into pursuant to the applicable provisions hereof, including, for all purposes
of this Indenture and any such supplemental indenture, the provisions of the
Trust Indenture Act that are deemed to be a part of and govern this Indenture
and any such supplemental indenture, respectively.

 

“Initial Purchasers”
means Goldman, Sachs & Co. and Morgan Stanley & Co. Incorporated.

 

“Initial Purchasers’
Option” has the meaning specified in Section 3.1.

 

4

 

“Interest Payment Date”
means the Stated Maturity of an installment of interest on the Securities.

 

“Issue Date” means
June 23, 2003.

 

“Liquidated Damages”
has the meaning specified in Section 2.2.

 

“Make–Whole Payment”
has the meaning specified in Section 2.2.

 

“Maturity,” when
used with respect to any Security, means the date on which the principal of
such Security becomes due and payable as therein or herein provided, whether at
the Stated Maturity or by declaration of acceleration, call for redemption,
exercise of the repurchase right set forth in Article XIII or otherwise.

 

“Non-electing Share”
has the meaning specified in Section 12.11.

 

“Notice Date” has
the meaning specified in Section 2.2.

 

“Officer” means
the Chairman or any Co-Chairman of the Board of Directors, any Vice Chairman of
the Board of Directors, the Chief Executive Officer, the Chief Operating
Officer, the President, any Executive Vice President, any Vice President or the
Chief Financial Officer of the Company.

 

“Notice of Default”
has the meaning specified in Section 5.1.

 

“Officer Certificate”
means a certificate signed by an Officer of the Company, and delivered to the
Trustee.  One of the Officers signing an
Officer Certificate given pursuant to Section 10.8 shall be the principal
executive, financial or accounting officer of the Company.

 

“Opinion of Counsel”
means a written opinion of counsel, who may be counsel for the Company and who
shall be reasonably acceptable to the Trustee.

 

“Outstanding,”
when used with respect to Securities, means, as of the date of determination,
all Securities theretofore authenticated and delivered under this Indenture,
except:

 

(i)                                     Securities
theretofore canceled by the Trustee or delivered to the Trustee for
cancellation;

 

(ii)                                  Securities
for which money in the necessary amount to pay or redeem such Securities has
been theretofore deposited with the Trustee or any Paying Agent (other than the
Company) in trust or set aside and segregated in trust by the Company (if the
Company shall act as its own Paying Agent) for the Holders of such Securities,
provided that if such Securities are to be redeemed, notice of such redemption
has been duly given pursuant to this Indenture or provision therefor reasonably
satisfactory to the Trustee has been made;

 

(iii)                               Securities
which have been paid pursuant to Section 3.6 or in exchange for or in lieu of which
other Securities have been authenticated and delivered pursuant to this
Indenture, other than any such Securities in respect of which there shall have
been presented to

 

5

 

the Trustee proof satisfactory to it that such
Securities are held by a bona fide purchaser in whose hands such Securities are
valid obligations of the Company; and

 

(iv)                              Securities
converted into Common Stock pursuant to Article XII;

 

provided, however,
that in determining whether the Holders of the requisite principal amount of
Outstanding Securities are present at a meeting of Holders of Securities for
quorum purposes or have given any request, demand, authorization, direction,
notice, consent or waiver hereunder, Securities owned by the Company or any
other obligor upon the Securities or any Affiliate of the Company or such other
obligor shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Trustee shall be protected in relying upon any such determination
as to the presence of a quorum or upon any such request, demand, authorization,
direction, notice, consent or waiver, only Securities which a Responsible
Officer of the Trustee has been notified in writing to be so owned shall be so
disregarded. Securities so owned which have been pledged in good faith may be
regarded as Outstanding if the pledgee is not the Company or any other obligor
upon the Securities or any Affiliate of the Company or such other obligor, and
the Trustee shall be protected in relying upon an Officer’s Certificate to such
effect.

 

 “Paying Agent” means any Person
authorized by the Company to pay the principal of or interest on any Securities
on behalf of the Company and, except as otherwise specifically set forth
herein, such term shall include the Company if it shall act as its own Paying
Agent. The Company has initially appointed the Trustee as its Paying Agent
pursuant to Section 10.2 hereof.

 

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

 

“Place of Conversion”
has the meaning specified in Section 3.1.

 

“Place of Payment”
has the meaning specified in Section 3.1.

 

“Predecessor Security”
of any particular Security means every previous Security evidencing all or a
portion of the same debt as that evidenced by such particular Security; and,
for the purposes of this definition, any Security authenticated and delivered
under Section 3.6 in exchange for or in lieu of a mutilated, destroyed, lost or
stolen Security shall be deemed to evidence the same debt as the mutilated,
destroyed, lost or stolen Security.

 

 “Provisional Redemption” has the
meaning specified in Section 2.2.

 

“Purchase Agreement”
means the Purchase Agreement, dated as of June 18, 2003, between the
Company and the Initial Purchasers, as such agreement may be amended from time
to time.

 

“Qualified
Institutional Buyer” shall mean a “qualified institutional buyer” as
defined in Rule 144A.

 

“Record Date”
means any Regular Record Date or Special Record Date.

 

6

 

“Record Date Period”
means the period from the close of business of any Regular Record Date next
preceding any Interest Payment Date to the opening of business on such Interest
Payment Date.

 

“Redemption Date,”
when used with respect to any Security to be redeemed, means the date fixed for
such redemption by or pursuant to this Indenture.

 

“Redemption Price,”
when used with respect to any Security to be redeemed, means the price at which
it is to be redeemed pursuant to this Indenture.

 

“Registrable
Securities” has the meaning specified in Section 10.11.

 

“Registration Default”
has the meaning specified in Section 2.2.

 

“Registration Rights
Agreement” means the Registration Rights Agreement, dated as of
June 23, 2003, between the Company and the Initial Purchasers, as such
agreement may be amended from time to time in accordance with its terms.

 

“Regular Record Date”
for interest payable in respect of any Security on any Interest Payment Date
means the close of business on June 15 or December 15 (whether or not
a Business Day), as the case may be, next preceding such Interest Payment Date.

 

“Repurchase Date”
has the meaning specified in Section 13.1.

 

“Repurchase Price”
has the meaning specified in Section 13.1.

 

“Responsible Officer,”
when used with respect to the Trustee, means any officer within the Corporate
Trust Office of the Trustee with direct responsibility for the administration
of this Indenture and also means, with respect to a particular corporate trust
matter, any other officer to whom such matter is referred because of his
knowledge and familiarity with the particular subject.

 

“Restricted Global
Security” has the meaning specified in Section 2.1.

 

“Restricted Securities”
means all Securities required pursuant to Section 3.5(3) to bear any Restricted
Securities Legend. Such term includes the Restricted Global Security.

 

“Restricted Securities
Legend” means, collectively, the legends substantially in the forms of the
legends required in the form of Security set forth in Section 2.2 to be placed
upon each Restricted Security.

 

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

 

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

 

“Rule 144A Information”
has the meaning specified in Section 10.9.

 

7

 

“Securities” has
the meaning ascribed to it in the first paragraph under the caption “Recitals
of the Company.”

 

“Securities Act”
means the United States Securities Act of 1933 (or any successor statute), as
amended from time to time.

 

“Security Register”
and “Security Registrar” have the respective meanings specified in
Section 3.5.

 

 “Shelf Registration Statement” has the
meaning specified in Section 2.2.

 

“Significant
Subsidiary” means, with respect to any Person, a Subsidiary of such Person
that would constitute a “significant subsidiary” as such term is defined under
Rule 1-02 of Regulation S-X under the Securities Act and the Exchange Act.

 

“Special Record Date”
for the payment of any Defaulted Interest means a date fixed by the Company
pursuant to Section 3.7.

 

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

 

“Subsidiary” means
a corporation more than 50% of the outstanding voting stock of which is owned,
directly or indirectly, by the Company or by one or more other Subsidiaries, or
by the Company and one or more other Subsidiaries. For the purposes of this
definition, “voting stock” means stock or other similar interests in the
corporation which ordinarily has or have voting power for the election of
directors, or persons performing similar functions, whether at all times or
only so long as no senior class of stock or other interests has or have such
voting power by reason of any contingency.

 

“Successor Security”
of any particular Security means every Security issued after, and evidencing
all or a portion of the same debt as that evidenced by, such particular
Security; and, for the purposes of this definition, any Security authenticated
and delivered under Section 3.6 in exchange for or in lieu of a mutilated,
destroyed, lost or stolen Security shall be deemed to evidence the same debt as
the mutilated, destroyed, lost or stolen Security.

 

“Surrender Certificate”
means a certificate substantially in the form set forth in Annex B.

 

“Trading Day”
means (i) if the Common Stock is quoted on The Nasdaq National Market or any
other system of automated dissemination of quotations of securities prices,
days on which trades may be effected through such system, (ii) if the Common
Stock is listed or admitted for trading on any national or regional securities
exchange, days on which such national or regional securities exchange is open
for business, or (iii) if the Common Stock is not listed on a national or
regional securities exchange or quoted on The Nasdaq National Market or any
other system of automated dissemination of quotation of securities prices, days
on which the Common Stock is traded regular way in the over-the-counter market
and for which a closing bid and a closing asked price for the Common Stock are
available.

 

8

 

“Trigger Event”
has the meaning specified in Section 12.12.

 

“Trust Indenture Act”
means the Trust Indenture Act of 1939, and the rules and regulations
thereunder, as in force at the date as of which this Indenture was executed,
provided, however, that in the event the Trust Indenture Act of 1939 is amended
after such date, “Trust Indenture Act” means, to the extent required by any
such amendment, the Trust Indenture Act of 1939, and the rules and regulations
thereunder, as so amended.

 

“Trustee” means
the Person named as the “Trustee” in the first paragraph of this Indenture
until a successor Trustee shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter “Trustee” shall mean such
successor Trustee.

 

“United States”
means the United States of America (including the States and the District of
Columbia), its territories, its possessions and other areas subject to its
jurisdiction (its “possessions” including Puerto Rico, the U.S. Virgin Islands,
Guam, American Samoa, Wake Island and the Northern Mariana Islands).

 

“Unrestricted
Securities Certificate” means a certificate substantially in the form set
forth in Annex A.

 

SECTION 1.2                                                  Compliance
Certificates and Opinions.

 

Upon any application or
request by the Company to the Trustee to take any action under any provision of
this Indenture, the Company shall furnish to the Trustee an Officer Certificate
stating that all conditions precedent, if any, provided for in this Indenture
relating to the proposed action have been complied with and an Opinion of
Counsel stating that in the opinion of such counsel all such conditions
precedent, if any, have been complied with, except that in the case of any such
application or request as to which the furnishing of such documents is
specifically required by any provision of this Indenture relating to such
particular application or request, no additional certificate or opinion need be
furnished.

 

Every certificate or
opinion with respect to compliance with a condition or covenant provided for in
this Indenture (including certificates provided for in Section 10.8) shall
include:

 

(1)                                a
statement that the individual signing such certificate or opinion has read such
covenant or condition and the definitions herein relating thereto;

 

(2)                                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;

 

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

 

(4)                                a
statement as to whether, in the opinion of each individual, such condition or
covenant has been complied with.

 

9

 

SECTION 1.3                                                  Form
of Documents Delivered to the Trustee.

 

In any case where several
matters are required to be certified by, or covered by an opinion of, any
specified Person, it is not necessary that all such matters be certified by, or
covered by the opinion of, only one such Person, or that they be so certified
or covered by only one document, but one such Person may certify or give an
opinion with respect to some matters and one or more other such Persons as to
other matters, and any such Person may certify or give an opinion as to such
matters in one or several documents.

 

Any certificate or
opinion of an officer of the Company may be based, insofar as it relates to
legal matters, upon a certificate or opinion of, or representations by,
counsel, unless such officer knows, or in the exercise of reasonable care
should know, that the certificate or opinion or representations with respect to
the matters upon which such certificate or opinion is based are erroneous. Any
such certificate or opinion of counsel may be based, insofar as it relates to
factual matters, upon a certificate or opinion of, or representations by, an
officer or officers of the Company or any other Person stating that the
information with respect to such factual matters is in the possession of the
Company or such other Person, unless such counsel knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to such matters are erroneous.

 

Where any Person is
required to make, give or execute two or more applications, requests, consents,
certificates, statements, opinions or other instruments under this Indenture,
they may, but need not, be consolidated and form one instrument.

 

SECTION 1.4                                                  Acts
of Holders of Securities.

 

(1)                                Any
request, demand, authorization, direction, notice, consent, waiver or other
action provided or permitted by this Indenture to be given or taken by Holders
of Securities may be embodied in and evidenced by (A) one or more instruments
of substantially similar tenor signed by such Holders in person or by an agent
or proxy duly appointed in writing by such Holders or (B) the record of Holders
of Securities voting in favor thereof, either in person or by proxies duly
appointed in writing, at any meeting of Holders of Securities duly called and
held in accordance with the provisions of Article IX. Such action shall become
effective when such instrument or instruments or record is delivered to the
Trustee and, where it is hereby expressly required, to the Company. The Trustee
shall promptly deliver to the Company copies of all such instruments and
records delivered to the Trustee. Such instrument or instruments and records
(and the action embodied therein and evidenced thereby) are herein sometimes
referred to as the “Act” of the Holders of Securities signing such
instrument or instruments and so voting at such meeting. Proof of execution of
any such instrument or of a writing appointing any such agent or proxy, or of
the holding by any Person of a Security, shall be sufficient for any purpose of
this Indenture and (subject to Section 6.1) conclusive in favor of the Trustee
and the Company if made in the manner provided in this Section. The record of
any meeting of Holders of Securities shall be proved in the manner provided in
Section 9.6.

 

(2)                                The
fact and date of the execution by any Person of any such instrument or writing
may be proved by the affidavit of a witness of such execution or by a
certificate of a notary public or other officer authorized by law to take
acknowledgments of deeds, certifying

 

10

 

that the individual signing such instrument or writing
acknowledged to him the execution thereof. Where such execution is by a signer
acting in a capacity other than his individual capacity, such certificate or
affidavit shall also constitute sufficient proof of his authority.

 

(3)                                The
principal amount and serial number of any Security held by any Person, and the
date of his holding the same, shall be proved by the Security Register.

 

(4)                                The
fact and date of execution of any such instrument or writing and the authority
of the Person executing the same may also be proved in any other manner which
the Trustee deems sufficient; and the Trustee may in any instance require
further proof with respect to any of the matters referred to in this Section
1.4.

 

(5)                                The
Company may set any day as the record date for the purpose of determining the
Holders entitled to give or take any request, demand, authorization, direction,
notice, consent, waiver or other action, or to vote on any action, authorized
or permitted by this Indenture to be given or taken by Holders. Promptly and in
any case not later than ten days after setting a record date, the Company shall
notify the Trustee and the Holders of such record date. If not set by the
Company prior to the first solicitation of a Holder made by any Person in
respect of any such action, or, in the case of any such vote, prior to such
vote, the record date for any such action or vote shall be the 30th day (or, if
later, the date of the most recent list of Holders required to be provided
pursuant to Section 14.1) prior to such first solicitation or vote, as the case
may be. With regard to any record date, the Holders on such date (or their duly
appointed agents or proxies), and only such Persons, shall be entitled to give
or take, or vote on, the relevant action, whether or not such Holders remain
Holders after such record date. Notwithstanding the foregoing, the Company
shall not set a record date for, and the provisions of this paragraph shall not
apply with respect to, any notice, declaration or direction referred to in the
next paragraph.

 

Upon receipt by the
Trustee from any Holder of (i) any notice of default or breach referred to
in Section 5.1(4), if such default or breach has occurred and is continuing and
the Trustee shall not have given such a notice to the Company, (ii) any
declaration of acceleration referred to in Section 5.2, if an Event of
Default has occurred and is continuing and the Trustee shall not have given
such a declaration to the Company, or (iii) any direction referred to in
Section 5.12, if the Trustee shall not have taken the action specified in such
direction, then, with respect to clauses (ii) and (iii), a record date shall
automatically and without any action by the Company or the Trustee be set for
determining the Holders entitled to join in such declaration or direction,
which record date shall be the close of business on the tenth day (or, if such
day is not a Business Day, the first Business Day thereafter) following the day
on which the Trustee receives such declaration or direction, and, with respect
to clause (i), the Trustee may set any day as a record date for the purpose of
determining the Holders entitled to join in such notice of default. Promptly
after such receipt by the Trustee of any such declaration or direction referred
to in clause (ii) or (iii), and promptly after setting any record date with
respect to clause (i), and as soon as practicable thereafter, the Trustee shall
notify the Company and the Holders of any such record date so fixed. The
Holders on such record date (or their duly appointed agents or proxies), and
only such Persons, shall be entitled to join in such notice, declaration or
direction, whether or not such Holders remain Holders after such record date;
provided that, unless such notice, declaration or direction shall have become
effective by virtue of Holders of the requisite principal amount of Securities
on such record date (or their duly appointed agents or proxies)

 

11

 

having joined therein on
or prior to the 90th day after such record date, such notice, declaration or
direction shall automatically and without any action by any Person be canceled
and of no further effect. Nothing in this paragraph shall be construed to
prevent a Holder (or a duly appointed agent or proxy thereof) from giving,
before or after the expiration of such 90-day period, a notice, declaration or
direction contrary to or different from, or, after the expiration of such
period, identical to, the notice, declaration or direction to which such record
date relates, in which event a new record date in respect thereof shall be set
pursuant to this paragraph. In addition, nothing in this paragraph shall be
construed to render ineffective any notice, declaration or direction of the
type referred to in this paragraph given at any time to the Trustee and the
Company by Holders (or their duly appointed agents or proxies) of the requisite
principal amount of Securities on the date such notice, declaration or
direction is so given.

 

(6)                                Except
as provided in Sections 5.12 and 5.13, any request, demand, authorization,
direction, notice, consent, election, waiver or other Act of the Holder of any
Security shall bind every future Holder of the same Security and the Holder of
every Security issued upon the registration of transfer thereof or in exchange
therefor or in lieu thereof in respect of anything done, omitted or suffered to
be done by the Trustee or the Company in reliance thereon, whether or not
notation of such action is made upon such Security.

 

(7)                                The
provisions of this Section 1.4 are subject to the provisions of Section 9.5.

 

SECTION 1.5                                                  Notices,
Etc. to the Trustee and Company.

 

Any request, demand,
authorization, direction, notice, consent, election, waiver or other Act of
Holders of Securities or other document provided or permitted by this Indenture
to be made upon, given or furnished to, or filed with,

 

(1)                                the
Trustee by any Holder of Securities or by the Company shall be sufficient for
every purpose hereunder if made, given, furnished or filed in writing to or
with a Responsible Officer of the Trustee and received at its Corporate Trust
Office, Attention: Institutional Trust Services.

 

(2)                                the
Company by the Trustee or by any Holder of Securities shall be sufficient for
every purpose hereunder (unless otherwise herein expressly provided) if in
writing, mailed, first-class postage prepaid, or telecopied and confirmed by
mail, first-class postage prepaid, or delivered by hand or overnight courier,
addressed to the Company at 9373 Towne Centre Drive, San Diego, California
92121, Attention:  Chief Financial
Officer, or at any other address previously furnished in writing to the Trustee
by the Company.

 

SECTION 1.6                                                  Notice
to Holders of Securities; Waiver.

 

Except as otherwise
expressly provided herein, where this Indenture provides for notice to Holders
of Securities of any event, such notice shall be sufficiently given to Holders
if in writing and mailed, first-class postage prepaid or delivered by an
overnight delivery service, or transmitted by telecopy, with written
confirmation of transmission, to each Holder of a Security affected by such
event, at the address of such Holder as it appears in the Security Register,
not earlier than the earliest date and not later than the latest date
prescribed for the giving of such notice.

 

12

 

Neither the failure to
mail such notice, nor any defect in any notice so mailed, to any particular
Holder of a Security shall affect the sufficiency of such notice with respect
to other Holders of Securities. In case by reason of the suspension of regular
mail service or by reason of any other cause it shall be impracticable to give
such notice by mail, then such notification to Holders of Securities as shall
be made with the approval of the Trustee, which approval shall not be
unreasonably withheld, shall constitute a sufficient notification to such
Holders for every purpose hereunder.

 

Such notice shall be
deemed to have been given three (3) days after mailing, if by mail, one day (1)
after mailing if by overnight courier, and on the date the notice is furnished
if by telecopy or by hand.

 

Where this Indenture
provides for notice in any manner, such notice may be waived in writing by the
Person entitled to receive such notice, either before or after the event, and
such waiver shall be the equivalent of such notice. Waivers of notice by
Holders of Securities shall be filed with the Trustee, but such filing shall
not be a condition precedent to the validity of any action taken in reliance
upon such waiver.

 

SECTION 1.7                                                  Effect
of Headings and Table of Contents.

 

The Article and Section
headings herein and the Table of Contents are for convenience only and shall
not affect the construction hereof.

 

SECTION 1.8                                                  Successors
and Assigns.

 

All covenants and
agreements in this Indenture by the Company shall bind its successors and
assigns, whether so expressed or not.

 

SECTION 1.9                                                  Separability
Clause.

 

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

 

SECTION 1.10                                            Benefits
of Indenture.

 

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

 

SECTION 1.11                                            Governing
Law.

 

THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND THE UNITED
STATES OF AMERICA.

 

13

 

SECTION 1.12                                            Legal
Holidays.

 

In any case where any
Interest Payment Date, Redemption Date, Repurchase Date or Stated Maturity of
any Security or the last day on which a Holder of a Security has a right to
convert his Security shall not be a Business Day at a Place of Payment or Place
of Conversion, as the case may be, then (notwithstanding any other provision of
this Indenture or of the Securities) payment of principal of, premium, if any,
or interest on, or the payment of the Redemption Price or Repurchase Price
(whether the same is payable in cash or in shares of Common Stock or a
combination thereof in the case of the Repurchase Price) with respect to, or
delivery for conversion of, such Security need not be made at such Place of
Payment or Place of Conversion, as the case may be, on or by such day, but may
be made on or by the next succeeding Business Day at such Place of Payment or
Place of Conversion, as the case may be, with the same force and effect as if
made on the Interest Payment Date, Redemption Date or Repurchase Date, or at
the Stated Maturity or by such last day for conversion; provided, however, that
in the case that payment is made on such succeeding Business Day, no interest
shall accrue on the amount so payable for the period from and after such
Interest Payment Date, Redemption Date, Repurchase Date, Stated Maturity or
last day for conversion, as the case may be.

 

SECTION 1.13                                            Conflict
with Trust Indenture Act.

 

If any provision hereof
limits, qualifies or conflicts with a provision of the Trust Indenture Act that
is required under such Act to be a part of and govern this Indenture, the
latter provision shall control. If any provision of this Indenture modifies or
excludes any provision of the Trust Indenture Act that may be so modified or
excluded, the latter provision shall be deemed to apply to this Indenture as so
modified or to be excluded, as the case may be. Until such time as this
Indenture shall be qualified under the Trust Indenture Act, this Indenture, the
Company and the Trustee shall be deemed for all purposes hereof to be subject
to and governed by the Trust Indenture Act to the same extent as would be the
case if this Indenture were so qualified on the date hereof.

 

ARTICLE II

 

SECURITY FORMS

 

SECTION 2.1                                                  Form
Generally.

 

The Securities shall be
in substantially the form set forth in this Article, with such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture, and may have such letters, numbers or other marks
of identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange, the Internal Revenue
Code of 1986, as amended, and regulations thereunder (the “Code”), or as
may, consistent herewith, be determined by the officers executing such
Securities, as evidenced by their execution thereof.  All Securities shall be in fully registered form.

 

The Trustee’s
certificates of authentication shall be in substantially the form set forth in
Section 2.3.

 

14

 

Conversion notices shall
be in substantially the form set forth in Section 2.4.

 

Repurchase notices shall
be substantially in the form set forth in Section 2.2.

 

The Securities
shall be printed, lithographed, typewritten or engraved or produced by any
combination of these methods or may be produced in any other manner permitted
by the rules of any automated quotation system or securities exchange
(including on steel engraved borders if so required by any securities exchange
upon which the Securities may be listed) on which the Securities may be quoted
or listed, as the case may be, all as determined by the officers executing such
Securities, as evidenced by their execution thereof.

 

Upon their original
issuance, Securities issued as contemplated by the Purchase Agreement to
Qualified Institutional Buyers in reliance on Rule 144A shall be issued in the
form of one or more Global Securities in definitive, fully registered form
without interest coupons and bearing the Restricted Securities Legend.  Such Global Security shall be registered in
the name of DTC, as Depositary, or its nominee and deposited with the Trustee,
as custodian for DTC, for credit by DTC to the respective accounts of
beneficial owners of the Securities represented thereby (or such other accounts
as they may direct). Such Global Security, together with its Successor
Securities which are Global Securities, are collectively herein called the “Restricted
Global Security.”

 

SECTION 2.2                                                  Form
of Security.

 

[FORM OF FACE]

 

[THE FOLLOWING LEGEND SHALL APPEAR ON THE FACE OF EACH
RESTRICTED SECURITY:

 

THIS NOTE AND ANY COMMON STOCK
ISSUABLE UPON THE CONVERSION OF THIS NOTE 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 NOTE IS HEREBY NOTIFIED THAT THE SELLER OF
THIS NOTE MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5
OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.

 

THIS NOTE AND ANY COMMON STOCK
ISSUABLE UPON CONVERSION OF THIS NOTE 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 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), (3) TO AN
INSTITUTIONAL INVESTOR THAT IS AN “ACCREDITED INVESTOR” WITHIN THE MEANING OF
RULE 501(A)(1), (2), (3) OR (7) OF REGULATION D

 

15

 

UNDER THE SECURITIES ACT PURSUANT TO
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT (IF AVAILABLE) OR
(4) 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 NOTE, 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 NOTE 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 NOTE AND ANY SUCH SHARES
SHALL BE DEEMED BY THE ACCEPTANCE OF THIS NOTE AND ANY SUCH SHARES TO HAVE
AGREED TO ANY SUCH AMENDMENT OR SUPPLEMENT.]

 

[THE FOLLOWING LEGEND SHALL APPEAR ON THE FACE OF EACH GLOBAL
SECURITY:

 

THIS SECURITY IS A GLOBAL SECURITY
WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED
IN THE NAME OF THE DEPOSITARY OR A NOMINEE OF THE DEPOSITARY, WHICH MAY BE
TREATED BY THE COMPANY, THE TRUSTEE AND ANY AGENT THEREOF AS OWNER AND HOLDER
OF THIS SECURITY FOR ALL PURPOSES.

 

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.

 

UNLESS AND UNTIL IT IS EXCHANGED IN
WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE REGISTERED FORM IN THE LIMITED
CIRCUMSTANCES REFERRED TO IN THE INDENTURE, THIS GLOBAL SECURITY MAY NOT
BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE
DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER
NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.]

 

16

 

AMYLIN PHARMACEUTICALS, INC.

 

2.25% CONVERTIBLE SENIOR NOTE DUE JUNE 30, 2008

 

	
  No.

  	
   

  	
  $

  

 

CUSIP
NO. 032346 AA 6

 

Amylin Pharmaceuticals,
Inc., a corporation duly organized and existing under the laws of the State of
Delaware (herein called the “Company,” which term includes any successor
Person under the Indenture referred to on the reverse hereof), for value
received, hereby promises to pay to
                     ,
or registered assigns, the principal sum of
           United States Dollars
(U.S.$        ) [if this Security is a Global Security, then insert – (which
principal amount may from time to time be increased or decreased to such other
principal amounts (which, taken together with the principal amounts of all
other Outstanding Securities, shall not exceed $150,000,000 or $ 175,000,000 if
the Initial Purchasers’ Option is exercised in full)) by adjustments made on
the records of the Trustee hereinafter referred to in accordance with the
Indenture)] on  June 30, 2008 and
to pay interest thereon, from June 23, 2003, or from the most recent
Interest Payment Date (as defined below) to which interest has been paid or
duly provided for, semi-annually in arrears on June 30 and
December 30 in each year (each, an “Interest Payment Date”), commencing
December 30, 2003, at the rate of 2.25% per annum, until the principal
hereof is due, and at the rate of     % per annum on any
overdue principal and premium, if any, and, to the extent permitted by law, on
any overdue interest. The interest so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, as provided in the Indenture,
be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest, which shall be the June 15 or December 15 (whether
or not a Business Day), as the case may be, next preceding such Interest
Payment Date.  Except as otherwise
provided in the Indenture, any such interest not so punctually paid or duly
provided for will forthwith cease to be payable to the Holder on such Regular
Record Date and may either be paid to the Person in whose name this Security
(or one or more Predecessor Securities) is registered at the close of business
on a Special Record Date for the payment of such Defaulted Interest to be fixed
by the Company, notice whereof shall be given to Holders of Securities not less
than 10 days prior to the Special Record Date, or be paid at any time in any
other lawful manner not inconsistent with the requirements of any automated
quotation system or securities exchange on which the Securities may be quoted
or listed, and upon such notice as may be required by such exchange, all as
more fully provided in the Indenture. Payments of principal shall be made upon
the surrender of this Security at the option of the Holder at the Corporate
Trust Office of the Trustee, or at such other office or agency of the Company
as may be designated by it for such purpose in the Borough of Manhattan, The City
of New York, in such lawful monies of the United States of America as at the
time of payment shall be legal tender for the payment of public and private
debts, or at such other offices or agencies as the Company may designate, by
United States Dollar check drawn on, or wire transfer to, a United States
Dollar account (such a wire transfer to be made only to a Holder of an
aggregate principal amount of Securities in excess of U.S. $2,000,000 and only
if such Holder shall have furnished wire instructions in writing to the Trustee
no later than 15 days prior to the relevant payment date). Payment of interest
on this Security may be made by United States Dollar check mailed to the
address of the Person entitled

 

17

 

thereto as such address
shall appear in the Security Register, or, upon written application by the
Holder to the Security Registrar setting forth wire instructions not later than
the relevant Record Date, by transfer to a United States Dollar account (such a
wire transfer to be made only to a Holder of an aggregate principal amount of
Securities in excess of U.S. $2,000,000 and only if such Holder shall have
furnished wire instructions in writing to the Trustee no later than 15 days
prior to the relevant payment date).

 

Except as specifically
provided herein and in the Indenture, the Company shall not be required to make
any payment with respect to any tax, assessment or other governmental charge
imposed by any government or any political subdivision or taxing authority
thereof or therein.

 

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

 

Unless the certificate of
authentication hereon has been executed by the Trustee referred to on the
reverse hereof or an Authenticating Agent by the manual signature of one of
their respective authorized signatories, this Security shall not be entitled to
any benefit under the Indenture or be valid or obligatory for any purpose.

 

18

 

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

 

	
   

  	
  AMYLIN PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

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

 

Dated:

 

 

J.P.
MORGAN TRUST COMPANY, NATIONAL ASSOCIATION

as
Trustee

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  

 

19

 

[FORM OF REVERSE]

 

This Security is one of a
duly authorized issue of securities of the Company designated as its “2.25%
Convertible Senior Notes due June 30, 2008” (herein called the “Securities”),
limited in aggregate principal amount to U.S. $150,000,000 (or $175,000,000 if
the Initial Purchasers’ Option is exercised in full), issued and to be issued
under an Indenture, dated as of June 23, 2003, (herein called the “Indenture”),
between the Company and J.P. Morgan Trust Company, National Association, as
Trustee (herein called the “Trustee,” which term includes any successor
trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company,
the Trustee and the Holders of the Securities and of the terms upon which the
Securities are, and are to be, authenticated and delivered.  As provided in the Indenture and subject to
certain limitations therein set forth, Securities are exchangeable for a like
aggregate principal amount of Securities of any authorized denominations as
requested by the Holder surrendering the same upon surrender of the Security or
Securities to be exchanged, at the Corporate Trust Office of the Trustee.  The Trustee upon such surrender by the
Holder will issue the new Securities in the requested denominations.

 

No sinking fund is
provided for the Securities.

 

The Securities are subject to provisional redemption by
the Company (a “Provisional Redemption”), in whole or in part, at any
time on or after June 30, 2006, upon notice as set forth in Section 11.5
of the Indenture, at a redemption price equal to the principal amount of the
Securities to be redeemed plus accrued and unpaid interest, if any, to but
excluding the Redemption Date if (i) the Closing Price Per Share of the
Common Stock shall have exceeded 140% of the Conversion Price then in effect
for at least 20 Trading Days in any consecutive 30-Trading Day period ending on
the Trading Day prior to the date of mailing of the notice of redemption
pursuant to Section 11.5 of the Indenture (the “Notice Date”) and
(ii) the Shelf Registration Statement covering resales of the Securities
and the Common Stock is effective and available for use and is expected to
remain effective and available for use for the 30 days following the Redemption
Date, unless registration is no longer required.

 

Upon any such
redemption, the Company shall make an additional payment (the “Make-Whole
Payment”) with respect to the Securities called for redemption to Holders on
the Notice Date in an amount equal to $112.94 per $1,000 in principal amount of
the Securities, less the amount of any interest actually paid or accrued and
unpaid on such Securities prior to the Redemption Date. The Company shall make
the Make-Whole Payment on all Securities called for redemption, including any
Securities converted into Common Stock pursuant to the terms of the Indenture
after the Notice Date and prior to the Redemption Date. The Make-Whole Payment
on Securities converted into Common Stock pursuant to the terms of the
Indenture after the Notice Date and prior to the Redemption Date shall not be
reduced by accrued and unpaid interest unless the Redemption Date occurs on or
after the Business Day following the Record Date and prior to the next
succeeding Interest Payment Date, in which case the Make-Whole Payment shall be
reduced by the interest due on such Interest Payment Date. The Company may make
the Make-Whole Payment (x) in cash or (y) subject to fulfillment by the Company
of the conditions (A) through (D) set forth in the following paragraph, in
shares of Common Stock, or a combination of cash and Common Stock, and the
Company shall specify the type of consideration for the Make-

 

20

 

Whole Payment in
the Company Notice.  For purposes of
this paragraph, the fair market value of shares of Common Stock shall be
determined by the Company and shall be equal to 95% of the average of the Closing Prices Per Share for the five
consecutive Trading Days ending on the third Trading Day prior to the
Redemption Date.

 

The following shall
constitute the conditions to any election by the Company to pay the Make-Whole
Payment (or any portion thereof) in shares of Common Stock:

 

(A) the shares of Common Stock to be issued in payment
of the Make-Whole Payment (or any portion thereof) hereunder shall not require
registration under any Federal securities law before such shares may be freely
transferable without being subject to any transfer restrictions under the
Securities Act upon repurchase, or if registration is required, such
registration shall be completed and shall become effective prior to or on the
Redemption Date (and the Company shall state in the notice of Provisional
Redemption that the Company expects that such registration statement shall
remain effective for at least 30 days following the Redemption Date);

 

(B) the shares of Common Stock to be issued in payment
of the Make-Whole Payment (or any portion thereof) hereunder shall not require
registration with, or approval of, any governmental authority under any state
law or any other Federal law before such shares may be validly issued or
delivered upon repurchase, or if such registration is required or such approval
must be obtained, such registration shall be completed or such approval shall
be obtained prior to or on the Redemption Date;

 

(C) the shares of Common Stock to be issued in payment
of the Make-Whole Payment (or any portion thereof) hereunder are, or shall have
been approved for quotation on The Nasdaq National Market or listed on a
national securities exchange, in either case, prior to or on the Redemption
Date; and

 

(D) all shares of Common Stock that may be issued in
payment of the Make-Whole Payment (or any portion thereof) will be issued out
of the Company’s authorized but unissued Common Stock and will, upon issue, be
duly and validly issued and fully paid and non-assessable and free of any
preemptive or similar rights.

 

If any of the conditions
set forth in clauses (A) through (D) above are not satisfied in accordance with
the terms thereof, the Make-Whole Payment shall be paid by the Company only in
cash.

 

In the event of a
redemption of the Securities, the Company will not be required (a) to register
the transfer or exchange of Securities for a period of 15 days immediately
preceding the date notice is given identifying the serial numbers of the
Securities called for such redemption or (b) to register the transfer or
exchange of any Security, or portion thereof, called for redemption.

 

In any case where the due
date for the payment of the principal of, premium, if any, interest, or
Liquidated Damages on any Security or the last day on which a Holder of a
Security has a right to convert his Security shall be, at any Place of Payment
or Place of Conversion as the case may be, a day on which banking institutions
at such Place of Payment or Place of Conversion are authorized or obligated by
law or executive order to close, then payment of principal, premium, if any,
interest, or Liquidated Damages, or delivery for conversion of such

 

21

 

Security need not be made
on or by such date at such place but may be made on or by the next succeeding
day at such place which is not a day on which banking institutions are
authorized or obligated by law or executive order to close, with the same force
and effect as if made on the date for such payment or the date fixed for redemption
or repurchase, or by such last day for conversion, and no interest shall accrue
on the amount so payable for the period after such date.

 

Subject to and upon
compliance with the provisions of the Indenture, the Holder of this Security is
entitled, at his option, at any time on or before the close of business on the
date of Maturity, or in case this Security or a portion hereof is called for
redemption or the Holder hereof has exercised his right to require the Company
to repurchase this Security or such portion hereof, then in respect of this
Security until the Business Day immediately preceding, but (unless the Company
defaults in making the payment due upon redemption or repurchase, as the case
may be) not after, the close of business on the Business Day immediately
preceding the Redemption Date or the Repurchase Date, as the case may be, to
convert this Security (or any portion of the principal amount hereof that is an
integral multiple of U.S.$1,000, provided that the unconverted portion of such principal
amount is U.S.$1,000 or any integral multiple of U.S.$1,000 in excess thereof)
into fully paid and nonassessable shares of Common Stock of the Company at an
initial Conversion Rate of 30.7266 shares of Common Stock for each U.S.$1,000
principal amount of Securities (or at the current adjusted Conversion Rate if
an adjustment has been made as provided in the Indenture) by surrender of this
Security, duly endorsed or assigned to the Company or in blank and, in case
such surrender shall be made during the period from the close of business on
any Regular Record Date next preceding any Interest Payment Date to the opening
of business on such Interest Payment Date (except if this Security or portion
thereof has been called for redemption on a Redemption Date or is repurchasable
on a Repurchase Date occurring, in either case, during the period from the
close of business on any Regular Record Date immediately preceding any Interest
Payment Date to the close of business on the second Business Day following such
Interest Payment Date and, as a result, the right to convert this Security
would otherwise terminate in such period if not exercised), also accompanied by
payment in New York Clearing House or other funds acceptable to the Company of
an amount equal to the interest payable on such Interest Payment Date on the
principal amount of this Security then being converted, and also the conversion
notice hereon duly executed, to the Company at the Corporate Trust Office of
the Trustee, or at such other office or agency of the Company, subject to any
laws or regulations applicable thereto and subject to the right of the Company
to terminate the appointment of any Conversion Agent (as defined below) as may
be designated by it for such purpose in the Borough of Manhattan, The City of
New York, or at such other offices or agencies as the Company may designate
(each a “Conversion Agent”), provided,
further, that if this Security or
portion hereof has been called for redemption (except pursuant to a call for
Provisional Redemption) on a Redemption Date or is repurchasable on a
Repurchase Date occurring, in either case, during the period from the close of
business on any Regular Record Date immediately preceding any Interest Payment
Date to the close of business on the second Business Day following such
Interest Payment Date, and as a result, the right to convert this Security
would otherwise terminate in such period if not exercised and this Security is
surrendered for conversion during such period, then the Holder of this Security
on such Regular Record Date will be entitled to receive the interest accruing
hereon from the Interest Payment Date immediately preceding the date of such
conversion to such succeeding Interest Payment Date and the Holder of this
Security who converts this Security or a portion hereof during such period
shall not be required to pay such interest upon surrender of this Security for

 

22

 

conversion.  Subject to the provisions of the preceding
sentence and, in the case of a conversion after the close of business on the
Regular Record Date immediately preceding any Interest Payment Date and on or
before the close of business on such Interest Payment Date, to the right of the
Holder of this Security (or any Predecessor Security of record as of such
Regular Record Date) to receive the related installment of interest to the
extent and under the circumstances provided in the Indenture, no cash payment
or adjustment is to be made on conversion for interest accrued hereon from the
Interest Payment Date immediately preceding the day of conversion, or for
dividends on the Common Stock issued on conversion hereof.  The Company shall thereafter deliver to the
Holder the fixed number of shares of Common Stock (together with any cash
adjustment, as provided in the Indenture) into which this Security is
convertible and such delivery will be deemed to satisfy the Company’s
obligation to pay the principal amount of this Security. No fractions of shares
or scrip representing fractions of shares will be issued on conversion, but
instead of any fractional interest (calculated to the nearest 1/100th of a
share) the Company shall pay a cash adjustment as provided in the Indenture.
The Conversion Rate is subject to adjustment as provided in the Indenture. In
addition, the Indenture provides that in case of certain consolidations or
mergers to which the Company is a party (other than a consolidation or merger
that does not result in any reclassification, conversion, exchange or cancellation
of the Common Stock) or the conveyance, transfer, sale or lease of all or
substantially all of the property and assets of the Company, the Indenture
shall be amended, without the consent of any Holders of Securities, so that
this Security, if then Outstanding, will be convertible thereafter, during the
period this Security shall be convertible as specified above, only into the
kind and amount of securities, cash and other property receivable upon such
consolidation, merger, conveyance, transfer, sale or lease by a holder of the
number of shares of Common Stock of the Company into which this Security could
have been converted immediately prior to such consolidation, merger,
conveyance, transfer, sale or lease (assuming such holder of Common Stock is
not a Constituent Person or an Affiliate of a Constituent Person, failed to
exercise any rights of election and received per share the kind and amount
received per share by a plurality of Non-electing Shares).  No adjustment in the Conversion Rate will be
made until such adjustment would require an increase or decrease of at least
one percent of such rate, provided that any adjustment that would otherwise be
made will be carried forward and taken into account in the computation of any
subsequent adjustment.

 

If this Security
is a Registrable Security (as defined in the Indenture), then the Holder of
this Security [if this security is a global security, then insert (including
any Person that has a beneficial interest in this Security)] and the Common
Stock of the Company issuable upon conversion hereof is entitled to the
benefits of a Registration Rights Agreement, dated as of June 23, 2003
(the “Registration Rights Agreement”) between the Company and the
Initial Purchasers.  Pursuant to the
Registration Rights Agreement, the Company has agreed for the benefit of the
Holders from time to time of the Registrable Securities that it will, at its
expense, (a) within 90 days after the Issue Date file a shelf registration
statement (the “Shelf Registration Statement”) with the Commission with
respect to resales of the Registrable Securities, (b) use its reasonable best
efforts to cause such Shelf Registration Statement to be declared effective by
the Commission within 180 days after the Issue Date of the Securities,
provided, however, that the Company may, upon written notice to all the
Holders, postpone having the 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, and (c) use its
reasonable

 

23

 

best efforts to
maintain such Shelf Registration Statement effective under the Securities Act
until the earliest of (i) the sale of all outstanding Registrable Securities
registered under such Shelf Registration; (ii) the expiration of the period
referred to in Rule 144(k) of the Securities Act with respect to Registrable
Securities held by non-affiliates of the Company; and (iii) two years after the
effective date of such Shelf Registration Statement (the “Effectiveness
Period”).  The Company will be
permitted to suspend the use of the prospectus which is part of the Shelf
Registration Statement during certain periods of time as provided in the
Registration Rights Agreement.

 

If (i) on or prior to the
90th day following the Issue Date, a Shelf Registration Statement has not been
filed with the Commission, or (ii) on or prior to the 180th day following the
Issue Date, such Shelf Registration Statement is not declared effective (each,
a “Registration Default”), additional interest (“Liquidated Damages”)
will accrue on this Restricted Security from and including the day following
such Registration Default to but excluding the day on which such Registration
Default has been cured. Liquidated Damages will be paid semi-annually in
arrears, with the first semi-annual payment due on the first Interest Payment
Date, as applicable, in respect of the Restricted Securities following the date
on which such Liquidated Damages begin to accrue, and will accrue at a rate per
annum equal to one-quarter of one percent (0.25%) of the principal amount of
the Restricted Securities to and including the 90th day following such
Registration Default and at a rate per annum equal to one-half of one percent
(0.50%) thereof from and after the 91st day following such Registration
Default. Pursuant to the Registration Rights Agreement, in the event that the
Shelf Registration Statement ceases to be effective (or the Holders of
Registrable Securities are otherwise prevented or restricted by the Company
from effecting sales pursuant thereto) (an “Effective Failure”) during
the Effectiveness Period for more than 30 days, whether or not consecutive,
during any 90-day period or for more than 90 days, whether or not consecutive,
during any 12-month period, then the Liquidated Damages will accrue at a rate
per annum equal to an additional one-half of one percent (0.50%) of the
principal amount of the Restricted Securities from the 31st day of the
applicable 90-day period or the 91st day of the applicable 12-month period
until the earlier of (A) such time as the Effective Failure is cured or (B) the
Effectiveness Period expires.

 

Whenever in this Security
there is a reference, in any context, to the payment of the principal of,
premium, if any, or interest on, or in respect of, any Security, such mention
shall be deemed to include mention of the payment of Liquidated Damages payable
as described in the preceding paragraph to the extent that, in such context,
Liquidated Damages are, were or would be payable in respect of such Security
and express mention of the payment of Liquidated Damages (if applicable) in any
provisions of this Security shall not be construed as excluding Liquidated
Damages in those provisions of this Security where such express mention is not
made.

 

If this Security is a
Registrable Security and the Holder of this Security [if this security is a
global security, then insert (including any Person that has a beneficial
interest in this security)] elects to sell this Security pursuant to the Shelf
Registration Statement then, by its acceptance hereof, such Holder of this
Security agrees to be bound by the terms of the Registration Rights Agreement
relating to the Registrable Securities which are the subject of such election.

 

24

 

If a Change in Control
occurs, the Holder of this Security, at the Holder’s option, shall have the
right, in accordance with the provisions of the Indenture, to require the
Company to repurchase this Security (or any portion of the principal amount
hereof that is at least $1,000 or an integral multiple of $1,000 in excess thereof,
provided that the portion of the principal amount of this Security to be
Outstanding after such repurchase is at least equal to U.S.$1,000) at a
Repurchase Price equal to 100% of the principal amount thereof plus interest
accrued but unpaid to but excluding the Repurchase Date. At the option of the
Company, the Repurchase Price may be paid in cash or, subject to the conditions
provided in the Indenture, by delivery of shares of Common Stock having a fair
market value equal to the Repurchase Price (less any cash payments) or a
combination thereof. For purposes of this paragraph, the fair market value of
shares of Common Stock shall be determined by the Company and shall be equal to
95% of the average of the Closing Prices Per Share for the five consecutive
Trading Days ending on the third Trading Day prior to the Repurchase Date.

 

Whenever in this Security
there is a reference, in any context, to the principal of any Security as of
any time, such reference shall be deemed to include reference to the Repurchase
Price payable in respect of such Security to the extent that such Repurchase
Price is, was or would be so payable at such time, and express mention of the
Repurchase Price in any provision of this Security shall not be construed as
excluding the Repurchase Price so payable in those provisions of this Security
when such express mention is not made.

 

[The following paragraph shall appear in each Global
Security:

 

In the event of a deposit
or withdrawal of an interest in this Security, including an exchange, transfer,
redemption, repurchase or conversion of this Security in part only, the
Trustee, as custodian of the Depositary, shall make an adjustment on its
records to reflect such deposit or withdrawal in accordance with the Applicable
Procedures.]

 

[The following paragraph shall appear in each Security that
is not a Global Security:

 

In the event of
redemption, repurchase or conversion of this Security in part only, a new
Security or Securities for the unredeemed, unrepurchased or unconverted portion
hereof will be issued in the name of the Holder hereof.]

 

If an Event of Default
shall occur and be continuing, the principal of all the Securities, together
with accrued interest to the date of declaration, may be declared due and
payable in the manner and with the effect provided in the Indenture. Upon
payment (i) of the amount of principal so declared due and payable, together
with accrued interest to the date of declaration, and (ii) of interest on any
overdue principal and, to the extent permitted by applicable law, overdue
interest, all of the Company’s obligations in respect of the payment of the
principal of and interest on the Securities shall terminate.

 

The Indenture permits,
with certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Company and the rights of the
Holders of the Securities under the Indenture at any time by the Company and
the Trustee with either (a) the written consent of the Holders of not less than
a majority in principal amount of the

 

25

 

Securities at the time
Outstanding, or (b) by the adoption of a resolution, at a meeting of Holders of
the Outstanding Securities at which a quorum is present, by the Holders of at least
a majority in aggregate principal amount of the Outstanding Securities
represented and entitled to vote at such meeting. The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount
of the Securities at the time Outstanding, on behalf of the Holders of all the
Securities, to waive compliance by the Company with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the Holder of this Security shall be conclusive
and binding upon such Holder and upon all future Holders of this Security and
of any Security issued in exchange therefor or in lieu hereof whether or not
notation of such consent or waiver is made upon this Security or such other
Security.

 

As provided in and
subject to the provisions of the Indenture, the Holder of this Security shall
not have the right to institute any proceeding with respect to the Indenture or
for the appointment of a receiver or trustee or for any other remedy
thereunder, unless such Holder shall have previously given the Trustee written
notice of a continuing Event of Default, the Holders of not less than 25% in
principal amount of the Outstanding Securities shall have made written request
to the Trustee to institute proceedings in respect of such Event of Default as
Trustee and offered the Trustee reasonable indemnity and the Trustee shall not
have received from the Holders of a majority in principal amount of the
Securities Outstanding a direction inconsistent with such request, and shall
have failed to institute any such proceeding, for 60 days after receipt of such
notice, request and offer of indemnity. The foregoing shall not apply to any
suit instituted by the Holder of this Security for the enforcement of any
payment of principal hereof, premiums if any, or interest (including Liquidated
Damages) hereon on or after the respective due dates expressed herein or for
the enforcement of the right to convert this Security as provided in the
Indenture.

 

No reference herein to
the Indenture and no provision of this Security or of the Indenture shall alter
or impair the obligation of the Company, which is absolute and unconditional,
to pay the principal of, premium, if any, and interest (including Liquidated
Damages) on this Security at the times, places and rate, and in the coin or
currency, herein prescribed or to convert this Security as provided in the
Indenture.

 

As provided in the
Indenture and subject to certain limitations therein set forth, the transfer of
this Security is registrable on the Security Register upon surrender of this
Security for registration of transfer at the Corporate Trust Office of the
Trustee or at such other office or agency of the Company as may be designated
by it for such purpose in the Borough of Manhattan, The City of New York (which
shall initially be an office or agency of the Trustee), or at such other
offices or agencies as the Company may designate, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder thereof or his
attorney duly authorized in writing, and thereupon one or more new Securities,
of authorized denominations and for the same aggregate principal amount, will
be issued to the designated transferee or transferees by the Registrar. 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 recover any tax or
other governmental charge payable in connection therewith.

 

26

 

Prior to due presentation
of a Security for registration of transfer, the Company, the Trustee and any
agent of the Company or the Trustee may treat the Person in whose name such
Security is registered, as the owner thereof for all purposes, whether or not
such Security be overdue, and neither the Company, the Trustee nor any such
agent shall be affected by notice to the contrary.

 

No recourse for the
payment of the principal (and premium, if any) or interest on this Security and
no recourse under or upon any obligation, covenant or agreement of the Company
in the Indenture or any indenture supplemental thereto or in any Security, or
because of the creation of any indebtedness represented thereby, shall be had
against any incorporator, stockholder, employee, agent, officer or director or
subsidiary, as such, past, present or future, of the Company or of any
successor corporation, either directly or through the Company or any successor
corporation, whether by virtue of any constitution, statute or rule of law or
by the enforcement of any assessment or penalty or otherwise, all such
liability being, by the acceptance hereof and as part of consideration for the
issue hereof, expressly waived and released.

 

THE INDENTURE AND THIS SECURITY SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, UNITED STATES
OF AMERICA.

 

All terms used in this
Security which are defined in the Indenture shall have the meanings assigned to
them in the Indenture.

 

ABBREVIATIONS

 

The following
abbreviations, when used in the inscription of the face of this Security, shall
be construed as though they were written out in full according to applicable
laws or regulations:

 

	
  TEN COM

  	
  as tenant in
  common

  	
  UNIF GIFT MIN
  ACT

  	
   

  	
  _____Custodian_____

  
	
  TEN ENT

  	
  as tenants by
  the entireties (Cust)

  	
   

  	
   

  	
  (Cust)

  	
   

  	
  (Minor)

  	
   

  	 

	
  JT TEN

  	
  as joint tenants
  with right of

  survivorship and not as tenants in

  common

  	
   

  	
   

  	
  under Uniform
  Gifts to

  
	
   

  	
  Minors
  Act________

  
	
   

  	
  (State)

  	
   

  	 

												

 

Additional abbreviations
may also be used though not in the above list.

 

27

 

ELECTION OF HOLDER TO REQUIRE REPURCHASE

 

(1)                                  Pursuant
to Section 13.1 of the Indenture, the undersigned hereby elects to have this
Security repurchased by the Company.

 

(2)                                  The
undersigned hereby directs the Trustee or the Company to pay it or
              
an amount in cash or, at the Company’s election, Common Stock valued as set
forth in the Indenture, equal to 100% of the principal amount to be repurchased
(less any cash payments) (as set forth below), or a combination of cash and
Common Stock, plus interest accrued to, but excluding, the Repurchase Date, as
provided in the Indenture.

 

	
  Dated:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature(s)

  	
   

  
	
   

  	
   

  
	
  Signature(s) must be guaranteed by an Eligible
  Guarantor Institution with membership in an approved signature guarantee
  program pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature Guaranteed

  	
   

  
	
   

  	
   

  
	
  Principal amount to be repurchased (at least U.S.
  $1,000 or an integral multiple of $1,000 in excess thereof):

  	
   

  
	
   

  	
   

  
	
  Remaining principal amount following such repurchase
  (not less than U.S. $1,000):

  	
   

  
	
   

  	
   

  

 

NOTICE:
The signature to the foregoing Election must correspond to the Name as written
upon the face of this Security in every particular, without alteration or any
change whatsoever.

 

28

 

SECTION 2.3                                                  Form
of Certificate of Authentication.

 

The Trustee’s certificate
of authentication shall be in substantially the following form:

 

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

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  
	
   

  	
  J.P. Morgan Trust Company, National

  Association, as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  
						

 

SECTION 2.4                                                  Form
of Conversion Notice.

 

CONVERSION NOTICE

 

The undersigned Holder of
this Security hereby irrevocably exercises the option to convert this Security,
or any portion of the principal amount hereof (which is U.S. $1,000 or an
integral multiple of U.S. $1,000 in excess thereof, provided that the
unconverted portion of such principal amount is U.S. $1,000 or any integral
multiple of U.S. $1,000 in excess thereof) below designated, into shares of
Common Stock in accordance with the terms of the Indenture referred to in this
Security, and directs that such shares, together with a check in payment for
any fractional share and any Securities representing any unconverted principal
amount hereof, be delivered to and be registered in the name of the undersigned
unless a different name has been indicated below. If shares of Common Stock or
Securities are to be registered in the name of a Person other than the
undersigned, (a) the undersigned will pay all transfer taxes payable with
respect thereto and (b) signature(s) must be guaranteed by an Eligible
Guarantor Institution with membership in an approved signature guarantee
program pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934. Any
amount required to be paid by the undersigned on account of interest
accompanies this Security.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Signature(s)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  If shares or Securities are to be registered in the
  name of a Person other than the Holder, please print such Person’s name and
  address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Name)

  	
   

  	
   

  
							

 

29

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Address)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Social Security or other Identification Number, if
  any

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature(s) must be guaranteed by an Eligible
  Guarantor Institution with membership in an approved signature guarantee
  program pursuant to Rule 17Ad – 15 under the Securities Exchange Act of 1934.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [Signature Guaranteed]

  	
   

  	
   

  

 

If
only a portion of the Securities is to be converted, please indicate:

 

1.                                       Principal
amount to be converted: U.S. $ 

 

2.                                       Principal
amount and denomination of Securities

representing unconverted principal amount to be issued:

 

Amount: U.S.
$                                                                                         Denominations:
U.S. $            

 

(U.S.$1,000
or any integral multiple of U.S.$1,000 in excess thereof, provided that the
unconverted portion of such principal amount is U.S. $1,000 or any integral
multiple of U.S. $1,000 in excess thereof)

 

30

 

SECTION 2.5                                                  Form
of Assignment.

 

For value received
                
hereby sell(s), assign(s) and transfer(s) unto
                
(Please insert social security or other identifying number of assignee) the
within Security, and hereby irrevocably constitutes and appoints
                    as
attorney to transfer the said Security on the books of the Company, with full
power of substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature(s)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Signature(s) must be guaranteed by an Eligible
  Guarantor Institution with membership in an approved signature guarantee
  program pursuant to Rule 17Ad - 15 under the Securities Exchange Act of 1934.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Signature Guaranteed

  	
   

  
							

 

31

 

ARTICLE III

 

THE SECURITIES

 

SECTION 3.1    Title and Terms.

 

The aggregate principal
amount of Securities which may be authenticated and delivered under this
Indenture is limited to U.S. $150,000,000 (or $175,000,000 if the option of the
Initial Purchasers set forth in Section 2 of the Purchase Agreement is
exercised in full (the “Initial Purchasers’ Option”)), except for
Securities authenticated and delivered pursuant to Section 3.4, 3.5, 3.6, 8.5,
12.2 or 13.3(5) in exchange for, or in lieu of, other Securities previously
authenticated and delivered under this Indenture.

 

The Securities shall be
known and designated as the “2.25% Convertible Senior Notes due June 30,
2008” of the Company.  Their Stated
Maturity shall be June 30, 2008 and they shall bear interest on their
principal amount from June 23, 2003, payable semi-annually in arrears on
June 30 and December 30 in each year, commencing December 30,
2003, at the rate of 2.25% per annum until the principal thereof is due and at
the rate of 2.25% per annum on any overdue principal and, to the extent
permitted by law, on any overdue interest; provided, however, that payments
shall only be made on a Business Day as provided in Section 1.12.

 

The principal of,
premium, if any, and interest on the Securities shall be payable as provided in
the form of Security set forth in Section 2.2, and the Repurchase Price,
whether payable in cash or in shares of Common Stock or a combination thereof,
shall be payable at such places as are identified in the Company Notice given
pursuant to Section 13.3 (any city in which any Paying Agent is located being
herein called a “Place of Payment”).

 

The Registrable
Securities are entitled to the benefits of a Registration Rights Agreement as
provided by Section 10.11 and in the form of Security set forth in Section 2.2.
The Securities are entitled to the payment of Liquidated Damages as provided by
Section 10.11.

 

At any time on or after
June 30, 2006, the Securities shall be subject to Provisional Redemption
by the Company, in whole or in part, subject to the conditions and as otherwise
provided in Article XI and in the form of Security set forth in Section 2.2.

 

The Securities shall be
convertible as provided in Article XII (any city in which any Conversion Agent
is located being herein called a “Place of Conversion”).

 

The Securities shall be
subject to repurchase by the Company at the option of the Holders as provided
in Article XIII.

 

SECTION 3.2    Denominations.

 

The Securities shall be
issuable only in registered form, without coupons, in denominations of U.S.
$1,000 and integral multiples of U.S. $1,000 in excess thereof.

 

32

 

SECTION 3.3    Execution,
Authentication, Delivery and Dating.

 

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

 

Securities bearing the
manual or facsimile signature of individuals who were at any time the proper
officers of the Company shall bind the Company, notwithstanding that such
individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of such Securities or did not hold such offices at
the date of such Securities.

 

At any time and from time
to time after the execution and delivery of this Indenture, the Company may
deliver Securities executed by the Company to the Trustee or to its order for
authentication, together with a Company Order for the authentication and
delivery of such Securities, and the Trustee in accordance with such Company
Order shall authenticate and make available for delivery such Securities as in
this Indenture provided.

 

Each Security shall be
dated the date of its authentication.

 

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

 

SECTION 3.4    Global
Securities; Non-Global Securities; Book-entry Provisions.

 

(1)                                  Global
Securities

 

(i)                                   Each
Global Security authenticated under this Indenture shall be registered in the
name of the Depositary designated by the Company for such Global Security or a
nominee thereof and delivered to such Depositary or a nominee thereof or
custodian therefor, and each such Global Security shall constitute a single
Security for all purposes of this Indenture.

 

(ii)                                Except
for exchanges of Global Securities for definitive, Non-Global Securities at the
sole discretion of the Company, no Global Security may be exchanged in whole or
in part for Securities registered, and no transfer of a Global Security in
whole or in part may be registered, in the name of any Person other than the
Depositary for such Global Security or a nominee thereof unless (A) such
Depositary (i) has notified the Company that it is unwilling, unable or no
longer qualified to continue as Depositary for such Global Security or (ii) has
ceased to be a clearing agency registered as such under the Exchange Act or
announces an intention permanently to cease business or does in fact do so or
(B) there shall have occurred and be continuing an Event of Default with
respect to such Global Security.  In
such event, if a successor Depositary for such Global Security is not appointed
by the Company within 90 days after the Company receives such notice or becomes
aware of such ineligibility, the Company will execute, and the Trustee, upon
receipt of an Officer Certificate directing the authentication and delivery of
Securities, will authenticate and deliver, Securities, in any authorized
denominations in an aggregate principal amount equal to the principal amount of
such Global Security in exchange for such Global Security.

 

33

 

(iii)                             If
any Global Security is to be exchanged for other Securities or canceled in
whole, it shall be surrendered by or on behalf of the Depositary or its nominee
to the Trustee, as Security Registrar, for exchange or cancellation, as
provided in this Article III. If any Global Security is to be exchanged for
other Securities or canceled in part, or if another Security is to be exchanged
in whole or in part for a beneficial interest in any Global Security, in each
case, as provided in Section 3.5, then either (A) such Global Security shall be
so surrendered for exchange or cancellation, as provided in this Article III,
or (B) the principal amount thereof shall be reduced or increased by an amount
equal to the portion thereof to be so exchanged or canceled, or equal to the
principal amount of such other Security to be so exchanged for a beneficial
interest therein, as the case may be, by means of an appropriate adjustment made
on the records of the Trustee, as Security Registrar, whereupon the Trustee, in
accordance with the Applicable Procedures, shall instruct the Depositary or its
authorized representative to make a corresponding adjustment to its records.
Upon any such surrender or adjustment of a Global Security, the Trustee shall,
subject to Section 3.5(3) and as otherwise provided in this Article III,
authenticate and deliver any Securities issuable in exchange for such Global
Security (or any portion thereof) to or upon the order of, and registered in
such names as may be directed by, the Depositary or its authorized
representative. Upon the request of the Trustee in connection with the
occurrence of any of the events specified in the preceding paragraph, the
Company shall promptly make available to the Trustee a reasonable supply of
Securities that are not in the form of Global Securities. The Trustee shall be
entitled to rely upon any order, direction or request of the Depositary or its
authorized representative which is given or made pursuant to this Article III
if such order, direction or request is given or made in accordance with the
Applicable Procedures.

 

(iv)                            Every
Security authenticated and delivered upon registration of transfer of, or in
exchange for or in lieu of, a Global Security or any portion thereof, whether
pursuant to this Article III or otherwise, shall be authenticated and delivered
in the form of, and shall be, a registered Global Security, unless such
Security is registered in the name of a Person other than the Depositary for
such Global Security or a nominee thereof, in which case such Security shall be
authenticated and delivered in definitive, fully registered form, without
interest coupons.

 

(v)                               The
Depositary or its nominee, as registered owner of a Global Security, shall be
the Holder of such Global Security for all purposes under the Indenture and the
Securities, and owners of beneficial interests in a Global Security shall hold
such interests pursuant to the Applicable Procedures. Accordingly, any such
owner’s beneficial interest in a Global Security will be shown only on, and the
transfer of such interest shall be effected only through, records maintained by
the Depositary or its nominee or its Agent Members and such owners of
beneficial interests in a Global Security will not be considered the owners or
holders thereof.

 

(2)                                  Non-Global
Securities

 

Securities issued upon
the events described in Section 3.4(l)(ii) shall be in definitive, fully
registered form, without interest coupons, and shall bear the Restricted
Securities Legend if and as required by this Indenture.

 

34

 

SECTION 3.5    Registration;
Registration of Transfer and Exchange; Restrictions on Transfer.

 

(1)                                  The
Company shall cause to be kept at the Corporate Trust Office of the Trustee a
register (the register maintained in such office referred to as the “Security
Register”) in which, subject to such reasonable regulations as it may
prescribe, the Company shall provide for the registration of Securities and of
transfers of Securities. The Trustee is hereby appointed “Security Registrar”
for the purpose of registering Securities and transfers and exchanges of
Securities as herein provided.

 

Upon surrender for
registration of transfer of any Security at an office or agency of the Company
designated pursuant to Section 10.2 for such purpose, the Company shall
execute, and the Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Securities of any
authorized denominations and of a like aggregate principal amount and bearing
such restrictive legends as may be required by this Indenture.

 

At the option of the
Holder, and subject to the other provisions of this Section 3.5, Securities may
be exchanged for other Securities of any authorized denomination and of a like
aggregate principal amount, upon surrender of the Securities to be exchanged at
any such office or agency. Whenever any Securities are so surrendered for
exchange, and subject to the other provisions of this Section 3.5, the Company
shall execute, and the Trustee shall authenticate and deliver, the Securities
that the Holder making the exchange is entitled to receive. Every Security
presented or surrendered for registration of transfer or for exchange shall (if
so required by the Company or the Security Registrar) be duly endorsed, or be
accompanied by a written instrument of transfer in form satisfactory to the
Company, the Trustee and the Security Registrar duly executed, by the Holder
thereof or his attorney duly authorized in writing.

 

All Securities issued
upon any registration of transfer or exchange of Securities shall be the valid
obligations of the Company, evidencing the same debt and entitled to the same
benefits under this Indenture as the Securities surrendered upon such
registration of transfer or exchange.

 

No service charge shall
be made to a Holder for any registration of transfer or exchange of Securities
except as provided in Section 3.6, 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 registration of transfer or exchange of Securities, other
than exchanges pursuant to Section 3.4, 8.5, 12.2 or 13.3 (other than where the
shares of Common Stock are to be issued or delivered in a name other than that
of the Holder of the Security) not involving any transfer and other than any
stamp and other duties, if any, which may be imposed in connection with any
such transfer or exchange by the United States or any political subdivision
thereof or therein, which shall be paid by the Company.

 

In the event of a
redemption of the Securities, neither the Company nor the Securities Registrar
will be required (a) to register the transfer of or exchange Securities for a
period of 15 days immediately preceding the date notice is given identifying
the serial numbers of the Securities called for such redemption or (b) to
register the transfer of or exchange any Security, or portion thereof, called
for redemption.

 

35

 

(2)                                  Certain
Transfers and Exchanges. Notwithstanding any other provision of this
Indenture or the Securities, transfers and exchanges of Securities and
beneficial interests in a Global Security of the kinds specified in this
Section 3.5(2) shall be made only in accordance with this Section 3.5(2).

 

(i)                                   Restricted
Global Security to Restricted Non-Global Security.  In the event that Non-Global Securities are
to be issued pursuant to Section 3.4(1)(ii) in connection with any transfer of
Securities, such transfer may be effected only in accordance with the
provisions of this Clause (2)(i) and subject to the Applicable Procedures.  Upon receipt by the Trustee, as Security
Registrar, of (A) a Company Order from the Company directing the Trustee, as
Security Registrar, to (x) authenticate and deliver one or more Securities of
the same aggregate principal amount as the beneficial interest in the
Restricted Global Security to be transferred, such instructions to contain the
name or names of the designated transferee or transferees, the authorized
denomination or denominations of the Securities to be so issued and appropriate
delivery instructions and (y) decrease the beneficial interest of a specified
Agent Member’s account in a Restricted Global Security by a specified principal
amount not greater than the principal amount of such Restricted Global
Security, and (B) such other certifications, legal opinions or other
information as the Company or the Trustee may reasonably require to confirm
that such transfer is being made pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the Securities
Act, then the Trustee, as Security Registrar, shall decrease the principal
amount of the Restricted Global Security by the specified amount and
authenticate and deliver Securities in accordance with such instructions from
the Company as provided in Section 3.4(1)(iii).

 

(ii)                                Restricted
Non-Global Security to Restricted Global Security.  If the Holder of a Restricted Security
(other than a Global Security) wishes at any time to transfer all or any
portion of such Restricted Security to a Person who wishes to take delivery
thereof in the form of a beneficial interest in the Restricted Global Security,
such transfer may be effected only in accordance with the provisions of this
Clause (2)(ii) and subject to the Applicable Procedures. Upon receipt by the
Trustee, as Security Registrar, of such Restricted Security as provided in
Section 3.5(1) and instructions from the Company directing that a
beneficial interest in the Restricted Global Security in a specified principal
amount not greater than the principal amount of such Security be credited to a
specified Agent Member’s account, then the Trustee, as Security Registrar,
shall cancel such Restricted Security (and issue a new Restricted Security in
respect of any untransferred portion thereof) as provided in Section 3.5(1) and
increase the principal amount of the Restricted Global Security by the
specified principal amount as provided in Section 3.4(1)(iii).

 

(iii)                             Exchanges
Between Global Security and Non-Global Security.  A beneficial interest in a Global Security may be exchanged for a
Security that is not a Global Security only as provided in Section 3.4 or only
if such exchange occurs in connection with a transfer effected in accordance
with Clause 2(i) above, provided that, if such interest is a beneficial
interest in the Restricted Global Security, then such interest shall be
exchanged for a Restricted Security (subject in each case to Section 3.5(3)). A
Security that is not a Global Security may be exchanged for a beneficial
interest in a Global Security only if such exchange occurs in connection with a
transfer effected in accordance with Clause (2)(ii) above.

 

36

 

(3)                                  Securities
Act Legends. All Securities issued pursuant to this Indenture, and all
Successor Securities, shall bear the Restricted Securities Legend and shall be
subject to the restrictions on transfer specified therein, subject to the
following:

 

(i)                                   subject
to the following Clauses of this Section 3.5(3), a Security or any portion
thereof which is exchanged, upon transfer or otherwise, for a Global Security
or any portion thereof shall bear the Restricted Securities Legend borne by
such Global Security for which the Security was exchanged;

 

(ii)                                subject
to the following Clauses of this Section 3.5(3), a new Security that is not a
Global Security and is issued in exchange for another Security (including a
Global Security) or any portion thereof, upon transfer or otherwise, shall bear
the Restricted Securities Legend borne by the Security for which the new
Security was exchanged;

 

(iii)                             any
Securities that are sold or otherwise disposed of pursuant to an effective
registration statement under the Securities Act (including the Shelf
Registration Statement), together with their Successor Securities shall not
bear a Restricted Securities Legend; the Company shall inform the Trustee in
writing of the effective date of any such registration statement registering
the Securities under the Securities Act and shall notify the Trustee, in
writing, at any time when prospectuses must be delivered with respect to
Securities to be sold pursuant to such registration statement. The Trustee
shall not be liable for any action taken or omitted to be taken by it in good
faith in accordance with the aforementioned registration statement;

 

(iv)                            at any
time after the Securities may be freely transferred without registration under
the Securities Act or without being subject to transfer restrictions pursuant
to the Securities Act, a new Security that does not bear a Restricted
Securities Legend may be issued in exchange for or in lieu of a Security (other
than a Global Security) or any portion thereof that bears such a legend if the
Trustee has received an Unrestricted Securities Certificate, satisfactory to
the Trustee and duly executed by the Holder of such Security bearing a
Restricted Securities Legend or his attorney duly authorized in writing, and
after such date and receipt of such certificate, the Trustee shall authenticate
and deliver such new Security in exchange for or in lieu of such other Security
as provided in this Article III;

 

(v)                               a
new Security that does not bear a Restricted Securities Legend may be issued in
exchange for or in lieu of a Security or any portion thereof that bears such a
legend if, in the Company’s judgment, placing such a legend upon such new
Security is not necessary to ensure compliance with the registration
requirements of the Securities Act, and the Trustee, at the written direction
of the Company, shall authenticate and deliver such a new Security as provided
in this Article III; and

 

(vi)                            notwithstanding
the foregoing provisions of this Section 3.5(3), a Successor Security of a
Security that does not bear a Restricted Securities Legend shall not bear such
legend unless the Company has reasonable cause to believe that such Successor
Security is a “restricted security” within the meaning of Rule 144, in which
case the Trustee, at the written direction of the Company, shall authenticate
and deliver a new Security bearing a Restricted Securities Legend in exchange
for such Successor Security as provided in this Article III.

 

37

 

(4)                                  Any
stock certificate representing shares of Common Stock issued upon conversion of
the Securities shall bear the Restricted Securities Legend borne by such
Securities, to the extent required by this Indenture, unless such shares of
Common Stock have been sold pursuant to a registration statement that has been
declared effective under the Securities Act (and that continues to be effective
at the time of such transfer) or sold pursuant to Rule 144(k) of the Securities
Act, or unless otherwise agreed by the Company in writing with written notice
thereof to the transfer agent for the Common Stock.  With respect to the transfer of shares of Common Stock issued
upon conversion of the Securities that are restricted hereunder, any deliveries
of certificates, legal opinions or other instruments that would be required to
be made to the Security Registrar in the case of a transfer of Securities, as
described above, shall instead be made to the transfer agent for the Common
Stock.

 

(5)                                  Neither
the Trustee, the Paying Agent nor any of their agents shall (i) have any duty
to monitor compliance with or with respect to any Federal or state or other
securities or tax laws or (ii) have any duty to obtain documentation on any
transfers or exchanges other than as specifically required hereunder.

 

SECTION 3.6    Mutilated,
Destroyed, Lost or Stolen Securities.

 

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

 

If there be delivered to
the Company and to the Trustee:

 

(1)                                evidence
to their satisfaction of the destruction, loss or theft of any Security, and

 

(2)                                such
security or indemnity as may be satisfactory to the Company and the Trustee to
save each of them and any agent of either of them harmless, then, in the
absence of actual notice to the Company or the Trustee that such Security has
been acquired by a bona fide purchaser, the Company shall execute and the
Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or
stolen Security, a new Security of like tenor and principal amount and bearing
a number not contemporaneously outstanding.

 

In case any such
mutilated, destroyed, lost or stolen Security has become or is about to become
due and payable, the Company in its discretion, but subject to any conversion
rights, may, instead of issuing a new Security, pay such Security, upon
satisfaction of the conditions set forth in the preceding paragraph.

 

Upon the issuance of any
new Security under this Section 3.6, the Company may require the payment of a
sum sufficient to cover any tax or other governmental charge that may be
imposed in relation thereto (other than any stamp and other duties, if any,
which may be imposed in connection therewith by the United States or any
political subdivision thereof or therein, which shall be paid by the Company)
and any other expenses (including the fees and expenses of the Trustee)
connected therewith.

 

Every new Security issued
pursuant to this Section 3.6 in lieu of any mutilated, destroyed, lost or
stolen Security shall constitute an original additional contractual obligation
of

 

38

 

the Company, whether or
not the mutilated, destroyed, lost or stolen Security shall be at any time
enforceable by anyone, and such new Security shall be entitled to all the
benefits of this Indenture equally and proportionately with any and all other
Securities duly issued hereunder.

 

The provisions of this
Section 3.6 are exclusive and shall preclude (to the extent lawful) all other
rights and remedies of any Holder with respect to the replacement or payment of
mutilated, destroyed, lost or stolen Securities.

 

SECTION 3.7    Payment
of Interest; Interest Rights Preserved.

 

Subject to the last
paragraph of this Section, interest or Liquidated Damages on any Security that
is payable, and is punctually paid or duly provided for, on any Interest
Payment Date shall be paid to the Person in whose name that Security (or one or
more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest.

 

Any interest or
Liquidated Damages on any Security that is payable, but is not punctually paid
or duly provided for, on any Interest Payment Date (herein called “Defaulted
Interest”) shall forthwith cease to be payable to the Holder on the
relevant Regular Record Date by virtue of having been such Holder, and such
Defaulted Interest may be paid by the Company, at its election in each case, as
provided in Clause (1) or (2) below:

 

(1)                                The
Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities (or their respective Predecessor Securities) are
registered at the close of business on a Special Record Date for the payment of
such Defaulted Interest, which shall be fixed in the following manner.  The Company shall notify the Trustee in
writing of the amount of Defaulted Interest proposed to be paid on each
Security, the date of the proposed payment and the Special Record Date, and at
the same time the Company shall deposit with the Trustee an amount of money equal
to the aggregate amount proposed to be paid in respect of such Defaulted
Interest or shall make arrangements satisfactory to the Trustee for such
deposit prior to the date of the proposed payment, such money when deposited to
be held in trust for the benefit of the Persons entitled to such Defaulted
Interest as in this Clause provided. The Special Record Date for the payment of
such Defaulted Interest shall be not more than 15 days and not less than 10
days prior to the date of the proposed payment and not less than 10 days after
the receipt by the Trustee of the notice of the proposed payment. The Trustee,
in the name and at the expense of the Company, shall cause notice of the
proposed payment of such Defaulted Interest and the Special Record Date therefor
to be mailed, first-class postage prepaid, to each Holder at such Holder’s
address as it appears in the Security Register, not less than 10 days prior to
such Special Record Date. Notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor having been so mailed, such
Defaulted Interest shall be paid to the Persons in whose names the Securities
(or their respective Predecessor Securities) are registered at the close of
business on such Special Record Date and shall no longer be payable pursuant to
the following Clause (2).

 

(2)                                The
Company may make payment of any Defaulted Interest in any other lawful manner
not inconsistent with the requirements of any securities exchange on which the
Securities may be listed, and upon such notice as may be required by such
exchange, if, after notice given

 

39

 

by the Company to the Trustee of the proposed payment
pursuant to this Clause, such manner of payment shall be deemed practicable by
the Trustee.

 

Subject to the foregoing
and following provisions of this Section and Section 3.5, each Security
delivered under this Indenture upon registration of transfer of or in exchange
for or in lieu of any other Security shall carry the rights to interest accrued
and unpaid, and to accrue, which were carried by such other Security.

 

Interest on any Security
that is converted in accordance with Section 12.2 during a Record Date Period
shall be payable in accordance with the provisions of Section 12.2.

 

SECTION 3.8    Persons
Deemed Owners.

 

Prior to due presentment
of a Security for registration of transfer, the Company, the Trustee, any
Paying Agent and any agent of the Company, the Trustee or any Paying Agent may
treat the Person in whose name such Security is registered as the owner of such
Security for the purpose of receiving payment of principal of, premium, if any,
and (subject to Section 3.7) interest on such Security and for all other
purposes whatsoever, whether or not such Security be overdue, and neither the
Company, the Trustee, any Paying Agent nor any agent of the Company, the
Trustee or any Paying Agent shall be affected by notice to the contrary.

 

SECTION 3.9    Cancellation.

 

All Securities
surrendered for payment, redemption, repurchase, registration of transfer or
exchange or conversion shall, if surrendered to any Person other than the
Trustee, be delivered to the Trustee. All Securities so delivered to the
Trustee shall be canceled promptly by the Trustee (or its agent). No Securities
shall be authenticated in lieu of or in exchange for any Securities canceled as
provided in this Section 3.9. The Trustee shall dispose of all canceled
Securities in accordance with applicable law and its customary practices in
effect from time to time.

 

SECTION 3.10    Computation
of Interest.

 

Interest on the
Securities (including any Liquidated Damages) shall be computed on the basis of
a 360-day year of twelve 30-day months.

 

SECTION 3.11    CUSIP
Numbers.

 

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

 

40

 

ARTICLE IV

 

SATISFACTION AND DISCHARGE

 

SECTION 4.1    Satisfaction
and Discharge of Indenture.

 

This Indenture shall upon
Company Request cease to be of further effect (except as to any surviving
rights of conversion, or registration of transfer or exchange, or replacement
of Securities herein expressly provided for and any right to receive Liquidated
Damages as provided in the Registration Rights Agreement and in the form of
Security set forth in Section 2.2 and the Company’s obligations to the Trustee
pursuant to Section 6.7), and the Trustee, at the expense of the Company, shall
execute proper instruments in form and substance reasonably satisfactory to the
Trustee acknowledging satisfaction and discharge of this Indenture, when

 

(1)                                  Either

 

(i)  all Securities theretofore authenticated and
delivered (other than (A) Securities which have been destroyed, lost or stolen
and that have been replaced or paid as provided in Section 3.6 and (B)
Securities for whose payment money has theretofore been deposited in trust or
segregated and held in trust by the Company and thereafter repaid to the
Company or discharged from such trust, as provided in Section 10.3) have been
delivered to the Trustee for cancellation; or

 

(ii) all such
Securities not theretofore delivered to the Trustee or its agent for
cancellation (other than Securities referred to in clauses (A) and (B) of
clause (1)(i) above)

 

(a)                                  have
become due and payable, or

 

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

 

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

 

(d)                                 and
the Company, in the case of clause (a), (b) or (c) above, has deposited or
caused to be deposited with the Trustee as trust funds (immediately available
to the Holders in the case of clause (a)) in trust for the purpose an amount in
cash sufficient to pay and discharge the entire indebtedness on such Securities
not theretofore delivered to the Trustee for cancellation, for principal,
premium, if any, and interest (including any Liquidated Damages) to the date of
such deposit (in the case of Securities which have become due and payable) or
to the Stated Maturity or Redemption Date, as the case may be;

 

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

 

41

 

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

 

Notwithstanding the
satisfaction and discharge of this Indenture, the obligations of the Company to
the Trustee under Section 6.7, the obligations of the Company to any
Authenticating Agent under Section 6.12, the obligation of the Company to pay
Liquidated Damages, if money shall have been deposited with the Trustee
pursuant to clause (1)(ii) of this Section 4.1, the obligations of the Trustee
under Section 4.2 and the last paragraph of Section 10.3 and the obligations of
the Company and the Trustee under Section 3.5 and Article XII shall survive.

 

SECTION 4.2    Application
of Trust Money.

 

Subject to the provisions
of the last paragraph of Section 10.3, all money deposited with the Trustee
pursuant to Section 4.1 shall be held in trust for the sole benefit of the
Holders, and such monies shall be applied by the Trustee, in accordance with
the provisions of the Securities and this Indenture, to the payment, either
directly or through any Paying Agent, to the Persons entitled thereto, of the
principal, premium, if any, and interest (including any Liquidated Damages) for
whose payment such money has been deposited with the Trustee.

 

All moneys deposited with
the Trustee pursuant to Section 4.1 (and held by it or any Paying Agent) for
the payment of Securities subsequently converted shall be returned to the
Company.

 

The Company shall pay and
indemnify the Trustee against any tax, fee or other charge imposed or assessed
against all money deposited with the Trustee pursuant to Section 4.1 (other
than income taxes and franchise taxes incurred or payable by the Trustee and
such other taxes, fees or charges incurred or payable by the Trustee that are
not directly the result of the deposit of such money with the Trustee).

 

ARTICLE V

 

REMEDIES

 

SECTION 5.1    Events
of Default.

 

“Event of Default,”
wherever used herein, means any one of the following events (whatever the
reason for such Event of Default and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

 

(1)                                default
in the payment of the principal of or premium, if any, on any Security at its
Maturity; or

 

(2)                                default
in the payment of any interest (including any Liquidated Damages) upon any
Security when it becomes due and payable, and continuance of such default for a
period of 30 days; or

 

42

 

(3)                                failure
by the Company to give a Company Notice in accordance with Section 13.3; or

 

(4)                                default
in the performance of any covenant of the Company in this Indenture (other than
a covenant a default in the performance of which is specifically dealt with
elsewhere in this Section), and continuance of such default for a period of 60
days after there has been given, by registered or certified mail, to the
Company by the Trustee or to the Company and the Trustee by the Holders of at
least 25% in principal amount of the Outstanding Securities a written notice
specifying such default or breach and requiring it to be remedied and stating
that such notice is a “Notice of Default” hereunder; or

 

(5)                                a
default in the payment when due (either at its stated maturity or upon
acceleration thereof, and after expiration of any applicable grace period)
under any bonds, debentures, notes or other evidences of indebtedness for money
borrowed (or guarantee thereof) by the Company or any Significant Subsidiary
(an “Instrument”) with an aggregate principal amount in excess of U.S.
$25,000,000, whether such indebtedness now exists or shall hereafter be
created, and such indebtedness is not discharged, or such acceleration is not
rescinded or annulled, within a period of 30 days after there shall have been
given, by registered or certified mail, to the Company by the Trustee or to the
Company and the Trustee by the Holders of at least 25% in principal amount of
the Outstanding Securities a written notice specifying such default and
requiring the Company to cause such indebtedness to be discharged or cause such
default to be cured or waived or such acceleration to be rescinded or annulled
and stating that such notice is a “Notice of Default” hereunder; or

 

(6)                                the
entry by a court having jurisdiction in the premises of (A) a decree or order
for relief in respect of the Company or any Significant Subsidiary in an
involuntary case or proceeding under any applicable Federal or state
bankruptcy, insolvency, reorganization or other similar law or (B) a decree or
order adjudging the Company or any Significant Subsidiary a bankrupt or
insolvent, or approving as properly filed a petition seeking reorganization, arrangement,
adjustment or composition of or in respect of the Company or any Significant
Subsidiary under any applicable Federal or state law, or appointing a
custodian, receiver, liquidator, assignee, trustee, sequestrator or other
similar official of the Company or any Significant Subsidiary or of any
substantial part of the property of either, or ordering the winding up or
liquidation of its affairs, and the continuance of any such decree or order for
relief or any such other decree or order unstayed and in effect for a period of
60 consecutive days; or

 

(7)                                the
commencement by the Company or any Significant Subsidiary of a voluntary case
or proceeding under any applicable Federal or state bankruptcy, insolvency,
reorganization or other similar law or of any other case or proceeding to be
adjudicated a bankrupt or insolvent, or the consent by either to the entry of a
decree or order for relief in respect of the Company or any Significant
Subsidiary in an involuntary case or proceeding under any applicable Federal or
state bankruptcy, insolvency, reorganization or other similar law or to the
commencement of any bankruptcy or insolvency case or proceeding against either,
or the filing by either of a petition or answer or consent seeking
reorganization or similar relief under any applicable Federal or state law, or
the consent by either to the filing of such petition or to the appointment of
or taking possession by a custodian, receiver, liquidator, assignee, trustee,
sequestrator or other similar official of the Company or any Significant
Subsidiary or of any substantial part of the property of

 

43

 

either, or the making by either of an assignment for
the benefit of creditors, or the admission by either in writing of its
inability to pay its debts generally as they become due, or the taking of
corporate action by the Company or any Significant Subsidiary in furtherance of
any such action.

 

SECTION 5.2    Acceleration
of Maturity; Rescission and Annulment.

 

If an Event of Default
(other than an Event of Default specified in Section 5.1(6) or 5.1(7) with
respect to the Company) occurs and is continuing, then in every such case the
Trustee or the Holders of not less than 25% in principal amount of the
Outstanding Securities may declare the principal of all the Securities to be
due and payable immediately, by a notice in writing to the Company (and to the
Trustee if given by the Holders), and upon any such declaration such principal
and all accrued interest thereon shall become immediately due and payable. If
an Event of Default specified in Section 5.1(6) or 5.1(7) with respect to the
Company occurs, the principal of, and accrued interest on, all the Securities
shall become immediately due and payable without any declaration or other Act
of the Holders or any act on the part of the Trustee.

 

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

 

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

 

(i)                                   all
overdue interest on all Securities,

 

(ii)                                the
principal of and premium, if any, on any Securities that have become due
otherwise than by such declaration of acceleration and any interest thereon at
the rate borne by the Securities,

 

(iii)                             to
the extent permitted by applicable law, interest upon overdue interest at a
rate of 2.25% per annum, and

 

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

 

(2)                                  all
Events of Default, other than the nonpayment of the principal of and any
premium and interest on, Securities which have become due solely by such
declaration of acceleration, have been cured or waived as provided in Section
5.13; and

 

(3)                                  such
rescission and annulment would not conflict with any judgment or decree issued
in appropriate judicial proceedings regarding the payment by the Trustee to the
Holders of the amounts referred to in 5.2(1).

 

No rescission or
annulment referred to above shall affect any subsequent default or impair any
right consequent thereon.

 

44

 

SECTION 5.3    Collection
of Indebtedness and Suits for Enforcement by Trustee.

 

The Company covenants
that if:

 

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

 

(2)                                default
is made in the payment of the principal of or premium, if any, on any Security
at the Maturity thereof,

 

the
Company will, upon demand of the Trustee pay to it, for the benefit of the
Holders of such Securities the whole amount then due and payable on such Securities
for principal and interest (including any Liquidated Damages) and interest on
any overdue principal and premium, if any, and, to the extent permitted by
applicable law, on any overdue interest (including any Liquidated Damages), at
a rate of 2.25% per annum, and in addition thereto, such further amount as
shall be sufficient to cover the reasonable costs and expenses of collection,
including the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel.

 

If the Company fails to
pay such amounts forthwith upon such demand, the Trustee, in its own name and
as trustee of an express trust, may institute a judicial proceeding for the
collection of the sums so due and unpaid, may prosecute such proceeding to judgment
or final decree and may enforce the same against the Company or any other
obligor upon the Securities and collect the moneys adjudged or decreed to be
payable in the manner provided by law out of the property of the Company or any
other obligor upon the Securities, wherever situated.

 

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

 

SECTION 5.4    Trustee
May File Proofs of Claim.

 

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

 

(1)                                to
file and prove a claim for the whole amount of principal, premium, if any, and
interest owing and unpaid in respect of the Securities and take such other
actions, including participating as a member, voting or otherwise, of any
official committee of creditors appointed in such matter, and to file such
other papers or documents, in each of the foregoing cases, as may be necessary
or advisable in order to have the claims of the Trustee (including any claim
for the

 

45

 

reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel) and of the Holders of
Securities allowed in such judicial proceeding, and

 

(2)                                to
collect and receive any moneys or other property payable or deliverable on any
such claim and to distribute the same; and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or other similar official in any such
judicial proceeding is hereby authorized by each Holder of Securities 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 of Securities to pay to
the Trustee any amount due to it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel and any other
amounts due the Trustee under Section 6.7.

 

Nothing herein contained
shall be deemed to authorize the Trustee to authorize or consent to or accept
or adopt on behalf of any Holder of a Security 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 of a Security in any such proceeding; provided, however,
that the Trustee may, on behalf of such Holders, vote for the election of a
trustee in bankruptcy or similar official.

 

SECTION 5.5    Trustee
May Enforce Claims Without Possession of Securities.

 

All rights of action and
claims under this Indenture or the Securities may be prosecuted and enforced by
the Trustee without the possession of any of the Securities or the production
thereof in any proceeding relating thereto, and any such proceeding instituted
by the Trustee shall be brought in its own name as trustee of an express trust,
and any recovery of judgment shall, after provision for the payment of the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, be for the ratable benefit of the Holders of the
Securities in respect of which judgment has been recovered.

 

SECTION 5.6    Application
of Money Collected.

 

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

 

FIRST:  To the payment of all amounts due the Trustee
under Section 6.7;

 

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

 

THIRD:  To such other Person or Persons, if any, to
the extent entitled thereto; and

 

FOURTH:  Any remaining amounts shall be repaid to the
Company.

 

46

 

SECTION 5.7    Limitation
on Suits.

 

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

 

(1)                                  such
Holder has previously given written notice to the Trustee of an Event of
Default that is continuing at the time of such institution;

 

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

 

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

 

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

 

(5)                                  no
direction inconsistent with such written request has been given to the Trustee
during such 60 day period by the Holders of a majority in principal amount of
the Outstanding Securities, it being understood and intended that no one or
more of such Holders shall have any right in any manner whatever by virtue of,
or by availing of, any provision of this Indenture to affect, disturb or
prejudice the rights of any other of such Holders, or to obtain or seek to
obtain priority or preference over any other of such Holders or to enforce any
right under this Indenture, except in the manner herein provided and for the
equal and ratable benefit of all such Holders.

 

SECTION 5.8    Unconditional
Right of Holders to Receive Principal, Premium and Interest and to Convert.

 

Notwithstanding any other
provision in this Indenture, the Holder of any Security shall have the right,
which is absolute and unconditional, to receive payment of the principal of,
premium, if any, and (subject to Section 3.7) interest (including Liquidated
Damages, if any) on such Security on the respective Stated Maturities expressed
in such Security (or, in the case of redemption or repurchase, on the
Redemption Date or Repurchase Date, as the case may be), and to convert such
Security in accordance with Article XII, and to institute suit for the
enforcement of any such payment and right to convert, and such rights shall not
be impaired without the consent of such Holder.

 

SECTION 5.9    Restoration
of Rights and Remedies.

 

If the Trustee or any
Holder of a Security has instituted any proceeding to enforce any right or remedy
under this Indenture and such proceeding has been discontinued or abandoned for
any reason, or has been determined adversely to the Trustee or to such Holder,
then and in every such case, subject to any determination in such proceeding,
the Company, the Trustee and the Holders of Securities shall be restored
severally and respectively to their former positions

 

47

 

hereunder and thereafter all rights and remedies of the Trustee and
such Holders shall continue as though no such proceeding had been instituted.

 

SECTION 5.10    Rights
and Remedies Cumulative.

 

Except as otherwise
provided with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Securities in the last paragraph of Section 3.6, no right or
remedy herein conferred upon or reserved to the Trustee or to the Holders of
Securities is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

 

SECTION 5.11    Delay
or Omission Not Waiver.

 

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

 

SECTION 5.12    Control
by Holders of Securities.

 

Subject to Section 6.3,
the Holders of a majority in principal amount of the Outstanding Securities
shall have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee or exercising any trust or
power conferred on the Trustee, provided that

 

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

 

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

 

(3)                                  the
Trustee need not take any action that might involve it in personal liability or
be unjustly prejudicial to the Holders of Securities not consenting.

 

SECTION 5.13    Waiver
of Past Defaults.

 

The Holders, either (i) through the written
consent of not less than a majority in principal amount of the Outstanding
Securities or (ii) by the adoption of a resolution, at a meeting of
Holders of the Outstanding Securities at which a quorum is present, by the
Holders of at least a majority in aggregate principal amount of the Outstanding
Securities represented at such meeting, may on behalf of the Holders of all the
Securities waive any past default hereunder and its consequences, except a
default (A) in the payment of the principal of, premium, if any, or
interest (including Liquidated Damages) on any Security, or (B) in respect
of a covenant or

 

48

 

provision hereof which under Article VIII cannot be modified or amended
without the consent of the Holder of each Outstanding Security affected.

 

Upon any such waiver,
such default shall cease to exist, and any Event of Default arising therefrom
shall be deemed to have been cured, for every purpose of this Indenture; but no
such waiver shall extend to any subsequent or other default or impair any right
consequent thereon.

 

SECTION 5.14    Undertaking
for Costs.

 

All parties to this
Indenture agree, and each Holder of any Security by his acceptance thereof
shall be deemed to have agreed, that any court may in its discretion require,
in any suit for the enforcement of any right or remedy under this Indenture, or
any suit against the Trustee for any action taken, suffered or omitted by it as
Trustee, the filing by any party litigant in such suit of an undertaking to pay
the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees and expenses, against
any party litigant in such suit, having due regard to the merits and good faith
of the claims or defenses made by such party litigant; but the provisions of
this Section 5.14 shall not apply to any suit instituted by the Company, to any
suit instituted by the Trustee, to any suit instituted by any Holder, or group
of Holders, holding in the aggregate more than 10% in principal amount of the
Outstanding Securities, or to any suit instituted by any Holder of any Security
for the enforcement of the payment of the principal of, premium, if any, or
interest on any Security on or after the respective Stated Maturity or
Maturities expressed in such Security (or, in the case of redemption or
repurchase, on or after the Redemption Date or Repurchase Date, as the case may
be) or for the enforcement of the right to convert any Security in accordance
with Article XII.

 

SECTION 5.15    Waiver
of Stay, Usury or Extension Laws.

 

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

 

ARTICLE VI

 

THE
TRUSTEE

 

SECTION 6.1    Certain
Duties and Responsibilities.

 

(1)                                  Except
during the continuance of an Event of Default,

 

(i)                                     the
Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture, and no implied covenants or
obligations shall be read into this Indenture against the Trustee; and

 

49

 

(ii)                                  in
the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed
therein, upon 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 be under a duty to examine the same
to determine whether or not they conform to the requirements of this Indenture,
but not to verify the contents thereof.

 

(2)                                  In
case 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 man would
exercise or use under the circumstances in the conduct of his own affairs.

 

(3)                                  No
provision of this Indenture shall be construed to relieve the Trustee from
liability for its own negligent action, its own negligent failure to act, or
its own willful misconduct, except that

 

(i)                                     this
paragraph (3) shall not be construed to limit the effect of paragraph (1) of this
Section;

 

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

 

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

 

(iv)                              no
provision of this Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of
its duties hereunder, or in the exercise of any of its rights.

 

(4)                                  Whether
or not therein expressly so provided, every provision of this Indenture
relating to the conduct or affecting the liability of or affording protection
to the Trustee shall be subject to the provisions of this Section.

 

SECTION 6.2    Notice
of Defaults.

 

Within 90 days after the
occurrence of any default hereunder as to which the Trustee has received
written notice, the Trustee shall give to all Holders of Securities, in the
manner provided in Section 1.6, notice of such default, unless such default
shall have been cured or waived; provided, however, that, except in the case of
a default in the payment of the principal of, premium, if any, or interest on
any Security the Trustee shall be protected in withholding such notice if and
so long as the board of directors, the executive committee or a trust committee
of directors or Responsible Officers of the Trustee in good faith determines
that the withholding of such notice is in the interest of the Holders; and
provided, further, that in the case of any

 

50

 

default of the character specified in Section 5.1(4), no such notice to
Holders of Securities shall be given until at least 60 days after the
occurrence thereof or, if applicable, the expiration of the cure period
specified therein. For the purpose of this Section, the term “default” means
any event which is, or after notice or lapse of time or both would become, an
Event of Default.

 

SECTION 6.3    Certain
Rights of Trustee.

 

Subject to the provisions
of Section 6.1:

 

(1)                                  the
Trustee may rely, and shall be protected in acting or refraining from acting,
upon any resolution, Officer Certificate, other certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, coupon, other evidence of indebtedness or other paper or
document (collectively, the “Documents”) believed by it to be genuine
and to have been signed or presented by the proper party or parties, and the
Trustee need not investigate any fact or matter stated in such Documents;

 

(2)                                  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;

 

(3)                                  whenever
in the administration of this Indenture the Trustee shall deem it desirable
that a matter be proved or established prior to taking, suffering or omitting
any action hereunder, the Trustee (unless other evidence be the one
specifically prescribed) may, in the absence of bad faith on its part, request
and rely upon an Officer Certificate or Opinion of Counsel;

 

(4)                                  the
Trustee may consult with counsel of its selection 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;

 

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

 

(6)                                  the
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, coupon,
other evidence of indebtedness or other paper or document, but the Trustee may
make such further inquiry or investigation into such facts or matters as it may
see fit, and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises of
the Company, personally or by agent or attorney;

 

(7)                                  the
Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys and the Trustee
shall not be

 

51

 

responsible for any misconduct or negligence on the part of any agent
or attorney appointed with due care by it hereunder;

 

(8)                                  No
permissive power, right or remedy conferred upon the Trustee hereinunder shall
be construed to impose a duty to exercise such power, right or remedy; and

 

(9)                                  The
Trustee shall not be deemed to have knowledge of any default or Event of
Default hereunder unless it has actual knowledge thereof or has received
written notice thereof from the Company or any Holder.  Except as otherwise expressly provided
herein, the Trustee shall not be bound to ascertain or inquire as to the
performance or observance of any of the terms, conditions, covenants or
agreements herein or of any of the documents executed in connection with the
Securities or as to the existence of an Event of Default hereunder.

 

SECTION 6.4    Not
Responsible for Recitals or Issuance of Securities.

 

The recitals contained
herein and in the Securities (except the Trustee’s certificates of authentication)
shall be taken as the statements of the Company, and the Trustee assumes no
responsibility for their correctness. 
The Trustee makes no representations as to the validity, sufficiency or
priority of this Indenture, of the Securities or of the Common Stock issuable
upon the conversion of the Securities. The Trustee shall not be accountable for
the use or application by the Company of Securities or the proceeds thereof.

 

SECTION 6.5    May Hold
Securities, Act as Trustee Under Other Indentures.

 

The Trustee, any
Authenticating Agent, any Paying Agent, any Conversion Agent or any other agent
of the Company or the Trustee, in its individual or any other capacity, may
become the owner or pledgee of Securities and may otherwise deal with the
Company with the same rights it would have if it were not Trustee,
Authenticating Agent, Paying Agent, Conversion Agent or such other agent.

 

The Trustee may become
and act as trustee under other indentures under which other securities, or
certificates of interest or participation in other securities, of the Company
are outstanding in the same manner as if it were not Trustee hereunder.

 

SECTION 6.6    Money
Held in Trust.

 

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

 

SECTION 6.7    Compensation
and Reimbursement.

 

The Company agrees:

 

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

 

52

 

(2)                                  except
as otherwise expressly provided herein, to reimburse the Trustee upon its
request for all reasonable expenses, disbursements and advances incurred or
made by the Trustee (including costs and expenses of enforcing this Indenture
and defending itself against any claim (whether asserted by the Company, any
Holder of Securities or any other Person) or liability in connection with the
exercise of any of its powers or duties hereunder) in accordance with any
provision of this Indenture (including the reasonable compensation and the
expenses and disbursements of its agents and counsel), except any such expense,
disbursement or advance as may be attributable to its negligence or willful
misconduct and recklessness; and

 

(3)                                  to
indemnify the Trustee (and its directors, officers, employees and agents) for,
and to hold it harmless against, any loss, liability or expense incurred
without negligence or willful misconduct and recklessness on its part, arising
out of or in connection with the acceptance or administration of this trust,
including the reasonable costs, expenses and reasonable attorneys’ fees of
defending itself against any claim or liability in connection with the exercise
or performance of any of its powers or duties hereunder.

 

The Trustee shall notify
the Company promptly of any claim for which it may seek indemnity; provided
that failure to so notify the Company shall not relieve the Company of its
obligations hereunder unless the Company is materially prejudiced thereby.  The Company may elect to defend any such
claim and the Trustee shall cooperate in such defense, in which case, after
notice of such election to defend such claim, the Company shall not be liable
to the Trustee for any legal or other expenses subsequently incurred by the
Trustee in connection with the defense of such claim, unless the Trustee
reasonably determines that representation of the Trustee and the Company by the
same counsel would present a conflict of interest.  The Company need not pay for any settlement made without its
consent, which consent shall not be unreasonably withheld.

 

The Trustee shall have a
lien prior to the Securities on all money or property held or controlled by the
Trustee to secure the Company’s payment obligations in this Section 6.7, except
that held in trust to pay principal and interest (including Liquidated Damages)
on the Securities.

 

When the Trustee incurs
expenses or renders services in connection with an Event of Default specified
in Section 5.1(6) or Section 5.1(7), the expenses (including the reasonable
charges of its counsel) and the compensation for the services are intended to
constitute expenses of the administration under any applicable Federal or state
bankruptcy, insolvency or other similar law.

 

The provisions of this
Section shall survive the termination of this Indenture or the earlier
resignation or removal of the Trustee.

 

SECTION 6.8    Corporate
Trustee Required; Eligibility.

 

There shall at all times
be a Trustee hereunder which shall be a Person that is eligible pursuant to the
Trust Indenture Act to act as such, and the Trustee and its parent corporation
shall have (or be part of a holding company group with) a combined capital and
surplus of at least U.S. $50,000,000, subject to supervision or examination by
Federal or state authority, and in

 

53

 

good standing. The Trustee or an Affiliate of the Trustee shall
maintain an established place of business in the Borough of Manhattan, The City
of New York. If such corporation publishes reports of condition at least
annually, pursuant to law or to the requirements of said supervising or examining
authority, then for the purposes of this Section, the combined capital and
surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at
any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section, it shall resign immediately in the manner and with
the effect hereinafter specified in this Article and a successor shall be
appointed pursuant to Section 6.9.

 

SECTION 6.9    Resignation
and Removal; Appointment of Successor.

 

(1)                                  No
resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of
appointment by the successor Trustee in accordance with the applicable
requirements of Section 6.10.

 

(2)                                  The
Trustee may resign at any time by giving written notice thereof to the Company.
If the instrument of acceptance by a successor Trustee required by Section 6.10
shall not have been delivered to the Trustee within 30 days after the giving of
such notice of resignation, the resigning Trustee may petition any court of
competent jurisdiction for the appointment of a successor Trustee.

 

(3)                                  The
Trustee may be removed at any time by an Act of the Holders of a majority in
principal amount of the Outstanding Securities, delivered to the Trustee and
the Company. If the instrument of acceptance by a successor Trustee required by
Section 6.10 shall not have been delivered to the Trustee within 30 days after
the giving of such notice of removal, the removed Trustee may petition any
court of competent jurisdiction for the appointment of a successor Trustee.

 

(4)                                  The
Trustee may be removed at any time by the Company and the Company may appoint a
successor Trustee pursuant to this Article, provided, that (i) there is
not an Event of Default that is continuing at the time of removal,
(ii) the successor Trustee appointed by the Company meets the eligibility
requirements of Section 6.8, and (iii) such removal and resignation
shall not become effective until the acceptance of appointment by the successor
Trustee in accordance with the applicable requirements of Section 6.10.

 

(5)                                  If
at any time:

 

(i)                                     the
Trustee shall cease to be eligible under Section 6.8 and shall fail to resign
after written request therefor by the Company or by any Holder of a Security
who has been a bona fide Holder of a Security for at least six months, or

 

(ii)                                  the
Trustee shall become incapable of acting or shall be adjudged a bankrupt or
insolvent or a receiver of the Trustee or of its property shall be appointed or
any public officer shall take charge or control of the Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation,

 

54

 

then,
in any such case (i) the Company by a Board Resolution may remove the Trustee,
or (ii) subject to Section 5.14, any Holder of a Security who has been a bona
fide Holder of a Security for at least six months may, on behalf of himself and
all others similarly situated, petition any court of competent jurisdiction for
the removal of the Trustee and the appointment of a successor Trustee.

 

(6)                                  If
the Trustee shall resign, be removed or become incapable of acting, or if a
vacancy shall occur in the office of Trustee for any cause, the Company, by a
Board Resolution, shall promptly appoint a successor Trustee and shall comply
with the applicable requirements of this Section and Section 6.10. If no
successor Trustee shall have been so appointed by the Company or the Holders of
Securities and accepted appointment in the manner required by this Section and
Section 6.10, any Holder of a Security who has been a bona fide Holder of a
Security for at least six months may, on behalf of himself and all others
similarly situated, petition any court of competent jurisdiction for the
appointment of a successor Trustee.

 

(7)                                  The
Company shall give notice of each resignation and each removal of the Trustee
and each appointment of a successor Trustee to all Holders of Securities in the
manner provided in Section 1.6. Each notice shall include the name of the
successor Trustee and the address of its Corporate Trust Office.

 

SECTION 6.10                                            Acceptance
of Appointment by Successor.

 

Every successor Trustee appointed
hereunder shall execute, acknowledge and deliver to the Company and to the
retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such
successor Trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee;
but, on the request of the Company or the successor Trustee, such retiring
Trustee shall, upon payment of its charges, execute and deliver an instrument
transferring to such successor Trustee all the rights, powers and trusts of the
retiring Trustee and shall duly assign, transfer and deliver to such successor
Trustee all property and money held by such retiring Trustee hereunder. Upon
request of any such successor Trustee, the Company shall execute any and all
instruments for more fully and certainly vesting in and confirming to such
successor Trustee all such rights, powers and trusts.

 

No successor Trustee
shall accept its appointment unless at the time of such acceptance such
successor Trustee shall be eligible under this Article.

 

SECTION 6.11                                            Merger,
Conversion, Consolidation or Succession to Business.

 

Any corporation into
which the Trustee may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Trustee shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Trustee (including the trust created by this Indenture), by sale or otherwise,
shall be the successor of the Trustee hereunder, provided such corporation
shall be otherwise eligible under this Article, without the execution or filing
of any paper or any further act on the part of any of the parties hereto. In
case any Securities shall have been authenticated, but not delivered, by the
Trustee then in office, any successor by merger, conversion or

 

55

 

consolidation to such authenticating Trustee may adopt such
authentication and deliver the Securities so authenticated with the same effect
as if such successor Trustee had itself authenticated such Securities.

 

SECTION 6.12                                            Authenticating
Agents.

 

The Trustee may, with the
consent of the Company, appoint an Authenticating Agent or Agents acceptable to
the Company with respect to the Securities, which Authenticating Agent shall be
authorized to act on behalf of the Trustee to authenticate Securities issued
upon exchange or substitution pursuant to this Indenture.

 

Securities authenticated
by an Authenticating Agent shall be entitled to the benefits of this Indenture
and shall be valid and obligatory for all purposes as if authenticated by the
Trustee hereunder, and every reference in this Indenture to the authentication
and delivery of Securities by the Trustee or the Trustee’s certificate of
authentication shall be deemed to include authentication and delivery on behalf
of the Trustee by an Authenticating Agent and a certificate of authentication
executed on behalf of the Trustee by an Authenticating Agent. Each
Authenticating Agent shall be subject to acceptance by the Company and shall at
all times be a corporation organized and doing business under the laws of the United
States of America, any State thereof or the District of Columbia, authorized
under such laws to act as Authenticating Agent and subject to supervision or
examination by government or other fiscal authority. If at any time an
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section 6.12, such Authenticating Agent shall resign
immediately in the manner and with the effect specified in this Section 6.12.

 

Any corporation into
which an Authenticating Agent may be merged or converted or with which it may
be consolidated, or any corporation resulting from any merger, conversion or
consolidation to which such Authenticating Agent shall be a party, or any
corporation succeeding to the corporate agency or corporate trust business of
an Authenticating Agent, by sale or otherwise, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible
under this Section 6.12, without the execution or filing of any paper or any
further act on the part of the Trustee or the Authenticating Agent.

 

An Authenticating Agent
may resign at any time by giving written notice thereof to the Trustee and to
the Company. The Trustee may at any time terminate the agency of an
Authenticating Agent by giving written notice thereof to such Authenticating
Agent and to the Company. Upon receiving such a notice of resignation or upon
such a termination, or in case at any time such Authenticating Agent shall
cease to be eligible in accordance with the provisions of this Section 6.12,
the Trustee may appoint a successor Authenticating Agent which shall be subject
to acceptance by the Company. Any successor Authenticating Agent upon
acceptance of its appointment hereunder shall become vested with all the
rights, powers and duties of its predecessor hereunder, with like effect as if
originally named as an Authenticating Agent. No successor Authenticating Agent
shall be appointed unless eligible under the provisions of this Section 6.12.

 

The Company agrees to pay
to each Authenticating Agent from time to time reasonable compensation for its
services under this Section 6.12.

 

56

 

If an Authenticating
Agent is appointed with respect to the Securities pursuant to this Section
6.12, the Securities may have endorsed thereon, in addition to or in lieu of
the Trustee’s certification of authentication, an alternative certificate of
authentication in the following form:

 

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

 

	
   

  	
  J.P. MORGAN TRUST COMPANY,

  NATIONAL ASSOCIATION,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  As Authenticating Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  

 

SECTION 6.13                                            Disqualification;
Conflicting Interests.

 

If the Trustee has or
shall acquire a conflicting interest within the meaning of the Trust Indenture
Act, the Trustee shall either eliminate such interest or resign, to the extent
and in the manner provided by, and subject to the provisions of, the Trust
Indenture Act and this Indenture.

 

SECTION 6.14                                            Preferential
Collection of Claims Against Company.

 

If and when the Trustee
shall be or become a creditor of the Company (or any other obligor upon the
Securities), the Trustee shall be subject to the provisions of the Trust
Indenture Act regarding the collection of claims against the Company (or any
such other obligor).

 

ARTICLE VII

 

CONSOLIDATION,
MERGER, CONVEYANCE, TRANSFER OR LEASE

 

SECTION 7.1    Company
May Consolidate, Etc. Only on Certain Terms.

 

The Company shall not
consolidate with or merge into any other Person or convey, transfer or lease
all its properties and assets substantially as an entirety to any Person, and
the Company shall not permit any Person to consolidate with or merge into the
Company or convey, transfer, sell or lease such Person’s properties and assets
substantially as an entirety to the Company unless:

 

(1)                                  the
Person formed by such consolidation or into or with which the Company is merged
or the Person to which the properties and assets of the Company are so
conveyed, transferred, sold or leased shall be a corporation, limited liability
company, partnership or trust organized and validly existing under the laws of
the United States of America, any State thereof or the District of Columbia
and, if other than the Company, shall expressly assume, by an

 

57

 

indenture supplemental hereto, executed and delivered to the Trustee,
in form reasonably satisfactory to the Trustee, the due and punctual payment of
the principal of, premium, if any, and interest (including Liquidated Damages,
if any) on all of the Securities as applicable, and the performance or
observance of every covenant of this Indenture on the part of the Company to be
performed or observed and shall have provided for conversion rights in all
material respects in accordance with Article XII;

 

(2)                                  immediately
after giving effect to such transaction no Event of Default, and no event that
after notice or lapse of time or both, would become an Event of Default, shall
have occurred and be continuing; and

 

(3)                                  the
Company has delivered to the Trustee an Officer Certificate and an Opinion of
Counsel, each stating that such consolidation, merger, conveyance, transfer or
lease and, if a supplemental indenture is required in connection with such
transaction, such supplemental indenture comply with this Article and that all
conditions precedent herein provided for relating to such transaction have been
complied with, together with any documents required under Section 8.3.

 

SECTION 7.2    Successor
Substituted.

 

Upon any consolidation of
the Company with, or merger of the Company into any other Person or any
conveyance, transfer or lease of all or substantially all the properties and
assets of the Company in accordance with Section 7.1, the successor Person
formed by such consolidation or into or with which the Company is merged or to
which such conveyance, transfer or lease is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under
this Indenture with the same effect as if such successor Person had been named
as the Company herein, and thereafter, except in the case of a lease, the
predecessor Person shall be relieved of all obligations and covenants under
this Indenture and the Securities.

 

ARTICLE VIII

 

SUPPLEMENTAL
INDENTURES

 

SECTION 8.1    Supplemental
Indentures Without Consent of Holders of Securities.

 

Without the consent of
any Holders of Securities the Company, when authorized by a Board Resolution,
and the Trustee, at any time and from time to time, may enter into one or more
indentures supplemental hereto for any of the following purposes:

 

(1)                                  to
evidence the succession of another Person to the Company and the assumption by
any such successor of the covenants and obligations of the Company herein and
in the Securities as permitted by Article VII of this Indenture; or

 

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

 

(3)                                  to
secure the Securities; or

 

58

 

(4)                                  to
make provision with respect to the conversion rights of Holders of Securities
pursuant to Section 12.11 or to make provision with respect to the repurchase
rights of Holders of Securities pursuant to Section 13.5; or

 

(5)                                  to
make any changes or modifications to this Indenture necessary in connection
with the registration of any Registrable Securities under the Securities Act as
contemplated by Section 10.11, provided such action pursuant to this clause (5)
shall not adversely affect the interests of the Holders of Securities in any
material respect; or

 

(6)                                  to
comply with the requirements of the Trust Indenture Act or the rules and
regulations of the Commission thereunder in order to effect or maintain the
qualification of this Indenture under the Trust Indenture Act, as contemplated
by this Indenture or otherwise; or

 

(7)                                  to
evidence and provide for the acceptance of appointment hereunder by a successor
Trustee; or

 

(8)                                  to
provide for uncertificated Securities; or

 

(9)                                  to
cure any ambiguity, to correct or supplement any provision herein that may be
inconsistent with any other provision herein or that is otherwise defective, or
to make any other provisions with respect to matters or questions arising under
this Indenture as the Company and the Trustee may deem necessary or desirable,
provided such action pursuant to this clause (9) shall not adversely affect the
interests of the Holders of Securities in any material respect.

 

Upon Company Request,
accompanied by a Board Resolution authorizing the execution of any such
supplemental indenture, and subject to and upon receipt by the Trustee of the
documents described in Section 8.3 hereof, the Trustee shall join with the
Company in the execution of any supplemental indenture authorized or permitted
by the terms of this Indenture and to make any further appropriate agreements
and stipulations that may be therein contained.

 

Notwithstanding any other
provision of the Indenture or the Securities, the Registration Rights Agreement
and the obligation to pay Liquidated Damages thereunder may be amended,
modified or waived in accordance with the provisions of the Registration Rights
Agreement.

 

SECTION 8.2    Supplemental
Indentures with Consent of Holders of Securities.

 

Except as set forth in
Section 8.1, with either (i) the written consent of the Holders of not less
than a majority in principal amount of the Outstanding Securities, by the Act
of said Holders delivered to the Company and the Trustee, or (ii) by the
adoption of a resolution, at a meeting of Holders of the Outstanding Securities
at which a quorum is present, by the Holders of at least a majority in
aggregate principal amount of the Outstanding Securities represented at such
meeting, the Company, when authorized by a Board Resolution, and the Trustee
may enter into an indenture or indentures supplemental hereto for the purpose
of adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of modifying in any manner the rights of the
Holders of Securities under this Indenture; provided, however, that no such
supplemental indenture shall, without the consent or affirmative vote of the
Holder of each Outstanding Security affected thereby,

 

59

 

(1)                                  change
the Stated Maturity of the principal of, or any installment of interest on, any
Security, or reduce the principal amount of, or the premium, if any, or the
rate of interest payable thereon, or reduce the amount payable upon a
redemption or mandatory repurchase, or change the place or currency of payment
of the principal of, premium, if any, or interest on any Security (including
any payment of Liquidated Damages (except as may be effected through an
amendment of the Registration Rights Agreement in accordance with its terms) or
Redemption Price or Repurchase Price in respect of such Security) or impair the
right to institute suit for the enforcement of any payment in respect of any Security
on or after the Stated Maturity thereof (or, in the case of redemption or any
repurchase, on or after the Redemption Date or Repurchase Date, as the case may
be); or

 

(2)                                  reduce
the requirements of Section 9.4 for quorum or voting, or reduce the percentage
in principal amount of the Outstanding Securities the consent of whose Holders
is required for any such supplemental indenture or the consent of whose Holders
is required for any waiver (of compliance with certain provisions of this
Indenture or certain defaults hereunder and their consequences) provided for in
this Indenture; or

 

(3)                                  modify
any of the provisions of this Section or Section 5.13 or 10.12, except to
increase any percentage contained herein or therein or to provide that certain
other provisions of this Indenture cannot be modified or waived without the
consent of the Holder of each Outstanding Security affected thereby;

 

(4)                                  modify
the ranking of the Securities in a manner adverse to the Holders; or

 

(5)                                  modify
the Company’s right to redeem the Securities in a manner adverse to the
Holders; or

 

(6)                                  modify
the provisions of Article XII or XIII in a manner adverse to the Holders;
or

 

(7)                                  modify
the provisions of Section 10.9 in a manner adverse to the Holder.

 

It shall not be necessary
for any Act of Holders of Securities under this Section to approve the
particular form of any proposed supplemental indenture, but it shall be
sufficient if such Act shall approve the substance thereof.

 

SECTION 8.3    Execution
of Supplemental Indentures.

 

In executing, or
accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts created by
this Indenture, the Trustee shall be entitled to receive, and (subject to
Sections 6.1 and 6.3) shall be fully protected in relying upon, an Opinion of
Counsel stating that the execution of such supplemental indenture is authorized
or permitted by this Indenture, and that such supplemental indenture has been
duly authorized, executed and delivered by the Company and constitutes a valid
and legally binding obligation of the Company enforceable against the Company
in accordance with its terms, subject to general equity principles and
applicable bankruptcy, insolvency, fraudulent transfer or conveyance,
reorganization, arrangement, dissolution, moratorium or other similar laws
relating to or affecting creditors’ rights generally.  The Trustee may, but shall not be obligated to, enter

 

60

 

into any such supplemental indenture which adversely affects the
Trustee’s own rights, duties or immunities under this Indenture or otherwise.

 

SECTION 8.4    Effect
of Supplemental Indentures.

 

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

 

SECTION 8.5    Reference
in Securities to Supplemental Indentures.

 

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

 

SECTION 8.6    Notice
of Supplemental Indentures.

 

Promptly after the
execution by the Company and the Trustee of any supplemental indenture pursuant
to the provisions of Section 8.2, the Company shall give notice to all Holders
of Securities of such fact, setting forth in general terms the substance of
such supplemental indenture, in the manner provided in Section 1.6. Any failure
of the Company to give such notice, or any defect therein, shall not in any way
impair or affect the validity of any such supplemental indenture.

 

ARTICLE IX

 

MEETINGS
OF HOLDERS OF SECURITIES

 

SECTION 9.1    Purposes
for Which Meetings May Be Called.

 

A meeting of Holders of
Securities may be called at any time and from time to time pursuant to this
Article to make, give or take any request, demand, authorization, direction,
notice, consent, waiver or other action provided by this Indenture to be made,
given or taken by Holders of Securities.

 

SECTION 9.2    Call,
Notice and Place of Meetings.

 

(1)                                  The
Trustee may, with the Company’s consent (prior to an Event of Default), at any
time call a meeting of Holders of Securities for any purpose specified in
Section 9.1, to be held at such time and at such place in the Borough of
Manhattan, The City of New York, as the Trustee shall determine. Notice of
every meeting of Holders of Securities, setting forth the time and the place of
such meeting and in general terms the action proposed to be taken at such

 

61

 

meeting, shall be given, in the manner provided in Section 1.6, not
less than 21 nor more than 180 days prior to the date fixed for the meeting.

 

(2)                                  In
case at any time the Company, pursuant to a Board Resolution, or, if an Event
of Default has occurred and is continuing, the Holders of at least 10% in
principal amount of the Outstanding Securities shall have requested the Trustee
to call a meeting of the Holders of Securities for any purpose specified in
Section 9.1, by written request setting forth in reasonable detail the action
proposed to be taken at the meeting, and the Trustee shall not have mailed the
notice of such meeting within 21 days after receipt of such request or shall
not thereafter proceed to cause the meeting to be held as provided herein, then
the Company or the Holders of Securities in the amount specified, as the case
may be, may determine the time and the place in the Borough of Manhattan, The
City of New York, for such meeting and may call such meeting for such purposes
by giving notice thereof as provided in paragraph (1) of this Section.

 

SECTION 9.3    Persons
Entitled to Vote at Meetings.

 

To be entitled to vote at
any meeting of Holders of Securities, a Person shall be (i) a Holder of one or
more Outstanding Securities, or (ii) a Person appointed by an instrument in
writing as proxy for a Holder or Holders of one or more Outstanding Securities
by such Holder or Holders. The only Persons who shall be entitled to be present
or to speak at any meeting of Holders shall be the Persons entitled to vote at
such meeting and their counsel, any representatives of the Trustee and its
counsel and any representatives of the Company and its counsel.

 

SECTION 9.4    Quorum;
Action.

 

The Persons entitled to
vote a majority in principal amount of the Outstanding Securities shall
constitute a quorum. In the absence of a quorum within 30 minutes of the time
appointed for any such meeting, the meeting shall, if convened at the request
of Holders of Securities, be dissolved. In any other case, the meeting may be
adjourned for a period of not less than 10 days as determined by the chairman
of the meeting prior to the adjournment of such meeting. In the absence of a
quorum at any such adjourned meeting, such adjourned meeting may be further
adjourned for a period not less than 10 days as determined by the chairman of
the meeting prior to the adjournment of such adjourned meeting (subject to
repeated applications of this sentence). Notice of the reconvening of any
adjourned meeting shall be given as provided in Section 9.2(1), except that
such notice need be given only once not less than five days prior to the date
on which the meeting is scheduled to be reconvened.  Notice of the reconvening of an adjourned meeting shall state
expressly the percentage of the principal amount of the Outstanding Securities
that shall constitute a quorum.

 

Subject to the foregoing,
at the reconvening of any meeting adjourned for a lack of a quorum, the Persons
entitled to vote 25% in principal amount of the Outstanding Securities at the
time shall constitute a quorum for the taking of any action set forth in the
notice of the original meeting.

 

At a meeting or an
adjourned meeting duly reconvened and at which a quorum is present as
aforesaid, any resolution and all matters (except as limited by the proviso to
Section 8.2 and

 

62

 

except to the extent Section 10.12 requires a different vote) shall be
effectively passed and decided if passed or decided by the lesser of
(i) the Holders of not less than a majority in principal amount of
Outstanding Securities and (ii) the Persons entitled to vote not less than
a majority in aggregate principal amount of Outstanding Securities represented
and entitled to vote at such meeting.

 

Any resolution passed or
decisions taken at any meeting of Holders of Securities duly held in accordance
with this Section shall be binding on all the Holders of Securities whether or
not present or represented at the meeting. The Trustee shall, in the name and
at the expense of the Company, notify all the Holders of Securities of any such
resolutions or decisions pursuant to Section 1.6.

 

SECTION 9.5    Determination
of Voting Rights; Conduct and Adjournment of Meetings.

 

(1)                                  Notwithstanding
any other provisions of this Indenture, the Trustee may make such reasonable
regulations as it may deem advisable for any meeting of Holders of Securities
in regard to proof of the holding of Securities and of the appointment of
proxies and in regard to the appointment and duties of inspectors of votes, the
submission and examination of proxies, certificates and other evidence of the
right to vote, and such other matters concerning the conduct of the meeting as
it shall deem appropriate. Except as otherwise permitted or required by any
such regulations, the holding of Securities shall be proved in the manner
specified in Section 1.4 and the appointment of any proxy shall be proved in
the manner specified in Section 1.4 or by having the signature of the Person
executing the proxy guaranteed by any bank, broker or other eligible
institution participating in a recognized medallion signature guarantee
program.

 

(2)                                  The
Trustee shall, by an instrument in writing, appoint a temporary chairman (which
may be the Trustee) of the meeting, unless the meeting shall have been called
by the Company or by Holders of Securities as provided in Section 9.2(1), in
which case the Company or the Holders of Securities calling the meeting, as the
case may be, shall in like manner appoint a temporary chairman. A permanent
chairman and a permanent secretary of the meeting shall be elected by vote of
the Persons entitled to vote a majority in principal amount of the Outstanding
Securities represented at the meeting.

 

(3)                                  At
any meeting, each Holder of a Security or proxy shall be entitled to one vote
for each U.S. $1,000 principal amount of Securities held or represented by him;
provided, however, that no vote shall be cast or counted at any meeting in
respect of any Security challenged as not Outstanding and ruled by the chairman
of the meeting to be not Outstanding. The chairman of the meeting shall have no
right to vote, except as a Holder of a Security or proxy.

 

(4)                                  Any
meeting of Holders of Securities duly called pursuant to Section 9.2 at which a
quorum is present may be adjourned from time to time by Persons entitled to
vote a majority in principal amount of the Outstanding Securities represented
at the meeting, and the meeting may be held as so adjourned without further
notice.

 

63

 

SECTION 9.6    Counting
Votes and Recording Action of Meetings.

 

The vote upon any
resolution submitted to any meeting of Holders of Securities shall be by
written ballots on which shall be subscribed the signatures of the Holders of
Securities or of their representatives by proxy and the principal amounts at
Stated Maturity and serial numbers of the Outstanding Securities held or
represented by them. The permanent chairman of the meeting shall appoint two
inspectors of votes who shall count all votes cast at the meeting for or
against any resolution and who shall make and file with the secretary of the
meeting their verified written reports in duplicate of all votes cast at the
meeting. A record, at least in duplicate, of the proceedings of each meeting of
Holders of Securities shall be prepared by the secretary of the meeting and
there shall be attached to said record the original reports of the inspectors
of votes on any vote by ballot taken thereat and affidavits by one or more
Persons having knowledge of the facts setting forth a copy of the notice of the
meeting and showing that said notice was given as provided in Section 9.2 and,
if applicable, Section 9.4. Each copy shall be signed and verified by the
affidavits of the permanent chairman and secretary of the meeting and one such
copy shall be delivered to the Company and another to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots voted
at the meeting. Any record so signed and verified shall be conclusive evidence
of the matters therein stated.

 

ARTICLE X

 

COVENANTS

 

SECTION 10.1    Payment
of Principal, Premium and Interest.

 

The Company covenants and
agrees that it will duly and punctually pay the principal of and premium, if
any, and interest (including Liquidated Damages, if any) on the Securities in
accordance with the terms of the Securities and this Indenture. The Company will
deposit or cause to be deposited with the Trustee or its nominee, no later than
the opening of business on the date of the Stated Maturity of any Security or
no later than the opening of business on the due date for any installment of
interest, all payments so due, which payments shall be in immediately available
funds on the date of such Stated Maturity or due date, as the case may be.

 

SECTION 10.2    Maintenance
of Offices or Agencies.

 

The Company will maintain
in the Borough of Manhattan, The City of New York, an office or agency where
the Securities may be surrendered for registration of transfer or exchange or
for presentation for payment or for conversion, redemption or repurchase 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 not designated or appointed by the Trustee. 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 or the office or agency of the Trustee in the Borough of Manhattan, The
City of New York.

 

64

 

The Company may at any
time and from time to time vary or terminate the appointment of any such agent
or appoint any additional agents for any or all of such purposes; provided,
however, that until all of the Securities have been delivered to the Trustee
for cancellation, or moneys sufficient to pay the principal of, premium, if
any, and interest on the Securities have been made available for payment and
either paid or returned to the Company pursuant to the provisions of Section
10.3, the Company will maintain in the Borough of Manhattan, The City of New
York, an office or agency where Securities may be presented or surrendered for
payment and conversion, which shall initially be the Corporate Trust Office of
the Trustee, where Securities may be surrendered for registration of transfer
or exchange 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, and notice to the Holders in accordance with
Section 1.6, of the appointment or termination of any such agents and of the
location and any change in the location of any such office or agency.

 

The Company hereby
initially designates the Trustee as Paying Agent, Security Registrar and
Conversion Agent, and the Corporate Trust Office of the Trustee as one such
office or agency of the Company for each of the aforesaid purposes.

 

SECTION 10.3                                            Money
for Security Payments to Be Held in Trust.

 

If the Company shall act
as its own Paying Agent, it will, on or before each due date of the principal
of, premium, if any, or interest on any of the Securities, segregate and hold
in trust for the benefit of the Persons entitled thereto a sum sufficient to
pay the principal, premium, if any, or interest so becoming due until such sums
shall be paid to such Persons or otherwise disposed of as herein provided and
the Company will promptly notify the Trustee, in writing, of its action or
failure so to act.

 

Whenever the Company
shall have one or more Paying Agents, it will, no later than the opening of
business on each due date of the principal of, premium, if any, or interest on
any Securities, deposit with the Trustee a sum in funds immediately payable on
the payment date sufficient to pay the principal, premium, if any, or interest
so becoming due, such sum to be held for the benefit of the Persons entitled to
such principal, premium, if any, or interest, and (unless such Paying Agent is
the Trustee) the Company will promptly notify the Trustee, in writing, of any
failure so to act.

 

The Company will cause
each Paying Agent other than the Trustee to execute and deliver to the Trustee
an instrument in which such Paying Agent shall agree with the Trustee, subject
to the provisions of this Section, that such Paying Agent will:

 

(1)                                  hold
all sums held by it for the payment of the principal of, premium, if any, or
interest on Securities for the benefit of the Persons entitled thereto until
such sums shall be paid to such Persons or otherwise disposed of as herein
provided;

 

(2)                                  give
the Trustee written notice of any default by the Company (or any other obligor
upon the Securities) in the making of any payment of principal, premium, if
any, or interest; and

 

65

 

(3)                                  at
any time during the continuance of any such default, upon the written request
of the Trustee, forthwith pay to the Trustee all sums so held by such Paying
Agent.

 

The Company may at any
time, for the purpose of obtaining the satisfaction and discharge of this
Indenture or for any other purpose, pay, or by Company Order direct any Paying
Agent to pay, to the Trustee all sums held in trust by the Company or such
Paying Agent, such sums to be held by the Trustee upon the same trusts as those
upon which such sums were held by the Company or such Paying Agent; and, upon
such payment by any Paying Agent to the Trustee, such Paying Agent shall be
released from all further liability with respect to such money.

 

Any money deposited with
the Trustee or any Paying Agent, or then held by the Company, in trust for the
payment of the principal of, premium, if any, or interest on any Security and
remaining unclaimed for two years after such principal, premium, if any, or
interest has become due and payable shall be paid to the Company on Company
Request, or (if then held by the Company) shall be discharged from such trust;
and the Holder of such Security shall thereafter, as an unsecured general
creditor, look only to the Company for payment thereof, and all liability of
the Trustee or such Paying Agent with respect to such trust money, and all
liability of the Company as trustee thereof, shall thereupon cease.

 

In the absence of a
written  request from the Company to
return unclaimed funds to the Company, the Trustee shall from time to time
deliver all unclaimed funds to or as directed by applicable escheat
authorities, as determined by the Trustee in its sole discretion, in accordance
with the customary practices and procedures of the Trustee.  Any unclaimed funds held by the Trustee
pursuant to this section shall  be held
uninvested and without any liability for interest.

 

SECTION 10.4                                            Existence.

 

Subject to Article VII,
the Company will do or cause to be done all things necessary to preserve and
keep in full force and effect its existence, rights (charter and statutory) and
franchises; provided, however, that the Company shall not be required to
preserve any such right or franchise if the Company shall determine that the
preservation thereof is no longer desirable in the conduct of the business of
the Company and that the loss thereof is not disadvantageous in any material
respect to the Holders.

 

SECTION 10.5                                            [Intentionally
Left Blank]

 

SECTION 10.6                                            Payment
of Taxes and Other Claims.

 

The Company will pay or
discharge, or cause to be paid or discharged, before the same may become
delinquent, (i) all taxes, assessments and governmental charges levied or
imposed upon the Company or any Subsidiary or upon the income, profits or
property of the Company or any Significant Subsidiary, (ii) all claims for
labor, materials and supplies which, if unpaid, might by law become a lien or
charge upon the property of the Company or any Significant Subsidiary, and
(iii) subject to Section 12.8 , all stamps and other duties, if any,
which may be imposed by the United States or any political subdivision thereof
or therein in connection with

 

66

 

the issuance, transfer, exchange or conversion of any Securities or
with respect to this Indenture; provided, however, that, in the case of clauses
(i) and (ii), the Company shall not be required to pay or discharge or cause to
be paid or discharged any such tax, assessment, charge or claim (A) if the
failure to do so will not, in the aggregate, have a material adverse impact on
the Company and its subsidiaries taken as a whole, or (B) if the amount,
applicability or validity is being contested in good faith by appropriate
proceedings.

 

SECTION 10.7                                            Registration
and Listing.

 

The Company will effect
all registrations with, and obtain all approvals by, all governmental
authorities that may be necessary under any United States Federal or state law
(including the Securities Act, the Exchange Act and state securities and Blue
Sky laws) before the shares of Common Stock issuable upon conversion of
Securities are issued and delivered, and qualified or listed as contemplated
under the Registration Rights Agreement.

 

Nothing in this Section
will limit the application of Section 10.11.

 

SECTION 10.8                                            Statement
by Officers as to Default.

 

The Company shall deliver
to the Trustee, within 120 days after the end of each fiscal year of the
Company ending after the date hereof, an Officer Certificate, stating whether
or not to the best knowledge of the signer thereof the Company is in default in
the performance and observance of any of the terms, provisions and conditions
of this Indenture (without regard to any period of grace or requirement of
notice provided hereunder) and, if the Company shall be in default, specifying
all such defaults and the nature and status thereof of which they may have
knowledge.

 

The Company will deliver
to the Trustee, forthwith upon becoming aware of any default or any Event of
Default under the Indenture, an Officer Certificate specifying with
particularity such default or Event of Default and further stating what action
the Company has taken, is taking or proposes to take with respect thereto.  For the purpose of this Section, the term
“default” means any event which is, or after notice or lapse of time or both
would become, an Event of Default.

 

Any notice required to be
given under this Section 10.8 shall be delivered to the Trustee at its Corporate
Trust Office.

 

SECTION 10.9                                            Delivery
of Certain Information.

 

At any time when the
Company is not subject to Section 13 or 15(d) of the Exchange Act, upon the
request of a Holder of a Restricted Security or the holder of shares of Common
Stock issued upon conversion thereof, the Company will promptly furnish or
cause to be furnished Rule 144A Information (as defined below) to such Holder
of Restricted Securities or such holder of shares of Common Stock issued upon
conversion of Restricted Securities, or to a prospective purchaser of any such
security designated by any such Holder or holder, as the case may be, to the
extent required to permit compliance by such Holder or holder with Rule 144A
under the Securities Act (or any successor provision thereto) in connection
with the resale of any such security; provided, however, that the Company shall
not be required to furnish such information

 

67

 

in connection with any request made on or after the date that is two
years from the later of (i) the date such a security (or any such predecessor
security) was last acquired from the Company or (ii) the date such a security
(or any such predecessor security) was last acquired from an “affiliate” of the
Company within the meaning of Rule 144 under the Securities Act (or any
successor provision thereto). “Rule 144A Information” shall be such
information as is specified pursuant to Rule 144A(d)(4) under the Securities
Act (or any successor provision thereto).

 

SECTION 10.10                                      Resale
of Certain Securities.

 

During the period
beginning on the last date of original issuance of the Securities and ending on
the date that is two years from such date (or such shortened period under Rule
144(k) under the Securities Act or any successor rule), the Company will not,
and will not permit any of its subsidiaries or other “affiliates” (as defined
under Rule 144 under the Securities Act or any successor provision thereto) to,
resell (i) any Securities that constitute “restricted securities” under Rule
144 or (ii) any securities into which the Securities have been converted under
this Indenture that constitute “restricted securities” under Rule 144, that in
either case have been reacquired by any of them.  The Trustee shall have no responsibility in respect of the
Company’s performance of its agreement in the preceding sentence.

 

SECTION 10.11                                      Registration
Rights.

 

The Company agrees that
the Holders from time to time of Registrable Securities (as defined below) are
entitled to the benefits of the Registration Rights Agreement.

 

Whenever in this
Indenture there is mentioned, in any context, the payment of the principal of,
premium, if any, or interest on, or in respect of, any Security, such mention
shall be deemed to include mention of the payment of Liquidated Damages
provided for in this Section to the extent that, in such context, Liquidated
Damages are, were or would be payable in respect thereof pursuant to the
provisions of this Section and express mention of the payment of Liquidated
Damages (if applicable) in any provisions hereof shall not be construed as
excluding Liquidated Damages in those provisions hereof where such express
mention is not made.

 

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

 

If a Security, or the
shares of Common Stock issuable upon conversion of a Security, is a Registrable
Security, and the Holder thereof elects to sell such Registrable Security
pursuant to the Shelf Registration Statement then, by its acceptance thereof,
the Holder of such Registrable Security will have agreed to be bound by the
terms of the Registration Rights Agreement relating to the Registrable
Securities which are the subject of such election.

 

For the purposes of the
Registration Rights Agreement, the term “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).

 

68

 

If Liquidated Damages are
payable under the Registration Rights Agreement, the Company shall deliver to
the Trustee a certificate to that effect stating (i) the amount of Liquidated
Damages that is payable and (ii) the date on which Liquidated Damages are
payable.  Unless and until a Responsible
Officer of the Trustee receives at the Corporate Trust Office such a
certificate, the Trustee may assume without inquiry that no Liquidated Damages
are payable.  If Liquidated Damages have
been paid by the Company directly to the persons entitled to them, the Company
shall deliver to the Trustee a certificate setting forth the particulars of
such payment.

 

SECTION 10.12                                      Waiver
of Certain Covenants.

 

The Company may omit in
any particular instance to comply with any covenant or condition set forth in
Sections 10.4 (other than with respect to the existence of the Company (subject
to Article VII)), and 10.6, inclusive (other than a covenant or condition which
under Article VIII cannot be modified or amended without the consent of the
Holder of each Outstanding Security affected), if before the time for such
compliance the Holders shall, through (i) the written consent of not less
than a majority in aggregate principal amount of the Outstanding Securities or
(ii) the adoption of a resolution at a meeting of Holders of the
Outstanding Securities at which a quorum is present by the Holders of not less
than a majority in aggregate principal amount of the Outstanding Securities
represented at such meeting, either waive such compliance in such instance or
generally waive compliance with such covenant or condition, but no such waiver
shall extend to or affect such covenant or condition except to the extent so
expressly waived, and, until such waiver shall become effective, the
obligations of the Company and the duties of the Trustee or any Paying or
Conversion Agent in respect of any such covenant or condition shall remain in
full force and effect.

 

ARTICLE XI

 

REDEMPTION
OF SECURITIES

 

SECTION 11.1                                            Right
of Redemption.

 

The Securities may be
redeemed in accordance with the provisions of the form of Security set forth in
Section 2.2.

 

SECTION 11.2                                            Applicability
of Article.

 

Redemption of Securities
at the election of the Company or otherwise, as permitted or required by any
provision of the Securities or this Indenture, shall be made in accordance with
such provision and this Article XI.

 

SECTION 11.3                                            Election
to Redeem; Notice to Trustee; Public Announcement.

 

The election of the Company
to redeem any Securities shall be evidenced by a Board Resolution. In case of
any redemption at the election of the Company of any of the Securities, the
Company shall, at least 45 days prior to the Redemption Date fixed by the
Company (unless a shorter notice shall be satisfactory to the Trustee), notify
the Trustee in writing of such

 

69

 

Redemption Date and make a public announcement thereof by release made
to Reuters Economic Services and Bloomberg Business News.

 

SECTION 11.4                                            Selection
by Trustee of Securities to Be Redeemed.

 

If less than all the
Securities are to be redeemed, the particular Securities to be redeemed shall
be selected by the Trustee within five Business Days after it receives the notice
described in 11.3, from the Outstanding Securities not previously called for
redemption, by lot or by such other method as the Trustee may deem fair and
appropriate.

 

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. 
The Trustee shall promptly notify the Company and each Security
Registrar in writing of the Securities selected for redemption and, in the case
of any Securities selected for partial redemption, the principal amount thereof
to be redeemed.

 

For all purposes of this
Indenture, unless the context otherwise requires, all provisions relating to
the redemption of Securities shall relate, in the case of any Securities
redeemed or to be redeemed only in part, to the portion of the principal amount
of such Securities which has been or is to be redeemed.

 

SECTION 11.5                                            Notice
of Redemption.

 

Notice of redemption
shall be given in the manner provided in Section 1.6 to the Holders of
Securities to be redeemed not less than 30 nor more than 60 days prior to the
Redemption Date, and such notice shall be irrevocable.

 

All notices of redemption
shall state:

 

(1)                                  the
Redemption Date,

 

(2)                                  the
Redemption Price, and accrued interest (including Liquidated Damages, if any),
if any, to, but excluding, the Redemption Date,

 

(3)                                  if
less than all Outstanding Securities are to be redeemed, the aggregate
principal amount of Securities to be redeemed and the aggregate principal
amount of Securities which will be outstanding after such partial redemption,

 

(4)                                  that
on the Redemption Date the Redemption Price, and accrued interest (including
Liquidated Damages, if any), if any, to, but excluding, the Redemption Date,
will become due and payable upon each such Security to be redeemed, and that
interest thereon shall cease to accrue on and after said date,

 

70

 

(5)                                  the
amount of the Make-Whole Payment and whether the Make-Whole Payment will be
paid in cash, Common Stock or a combination thereof (and the applicable ratio
of cash and Common Stock);

 

(6)                                  the
Conversion Rate, the date on which the right to convert the Securities to be
redeemed will terminate and the places where such Securities may be surrendered
for conversion, and

 

(7)                                  the
place or places where such Securities are to be surrendered for payment of the
Redemption Price and accrued interest (including Liquidated Damages, if any),
if any, to, but excluding, the Redemption Date.

 

In case of a partial
redemption, the notice shall specify the serial and CUSIP numbers (if any) and
the portions thereof called for redemption and that transfers and exchanges may
occur on or prior to the Redemption Date.

 

Notice of redemption of
Securities to be redeemed at the election of the Company shall be given by the
Company or, at the Company’s written request (which request shall be delivered
to the Trustee simultaneously with notification of the Redemption Date pursuant
to Section 11.3), by the Trustee in the name of and at the expense of the
Company. Notice of redemption of Securities to be redeemed at the election of
the Company received by the Trustee shall be given by the Trustee to each
Paying Agent in the name of and at the expense of the Company.

 

SECTION 11.6                                            Deposit
of Redemption Price.

 

On or prior to the
Redemption Date, the Company shall deposit with the Trustee (or, if the Company
is acting as its own Paying Agent, segregate and hold in trust as provided in
Section 10.3) an amount of money (which shall be in immediately available funds
on such Redemption Date) or, if applicable, Common Stock sufficient to pay the
Redemption Price of, and (except if the Redemption Date shall be an Interest
Payment Date) accrued interest (including Liquidated Damages, if any) to the
Redemption Date on, all the Securities which are to be redeemed on that date
other than any Securities called for redemption on that date which have been
converted prior to the date of such deposit.

 

If any Security called for
redemption is converted, any money deposited with the Trustee or so segregated
and held in trust for the redemption of such Security shall (subject to any
right of the Holder of such Security or any Predecessor Security to receive
interest as provided in the last paragraph of Section 3.7) be paid to the
Company or, if then held by the Company, shall be discharged from such trust.

 

SECTION 11.7                                            Securities
Payable on Redemption Date.

 

Notice of redemption
having been given as aforesaid, the Securities so to be redeemed shall, on the
Redemption Date, become due and payable at the Redemption Price therein
specified and from and after such date (unless the Company shall default in the
payment of the Redemption Price, including accrued interest) such Securities
shall cease to bear interest. Upon surrender of any Security for redemption in
accordance with said notice such Security shall be paid by the Company at the
Redemption Price together with accrued and unpaid interest

 

71

 

(including Liquidated Damages, if any) to but excluding the Redemption
Date; provided, however, that installments of interest on Securities whose
Stated Maturity is on or prior to the Redemption Date shall be payable to the
Holders of such Securities, or one or more Predecessor Securities, registered
as such on the relevant Record Date according to their terms and the provisions
of Section 3.7.

 

If any Security called
for redemption shall not be so paid upon surrender thereof for redemption, the
principal amount of, premium, if any, and, to the extent permitted by
applicable law, accrued interest on such Security shall, until paid, bear
interest from the Redemption Date at a rate of 2.25% per annum and such
Security shall remain convertible until the Redemption Price of such Security
(or portion thereof, as the case may be) shall have been paid or duly provided
for.

 

Any Security that is to
be redeemed only in part shall be surrendered at the Corporate Trust Office or
an office or agency of the Company designated for that purpose pursuant to
Section 10.2 (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 his attorney duly
authorized in writing), and the Company shall execute, and the Trustee shall
authenticate and make available for delivery to the Holder of such Security
without service charge, a new Security or Securities, of any authorized denomination
as requested by such Holder, in aggregate principal amount equal to and in
exchange for the unredeemed portion of the principal of the Security so
surrendered.

 

SECTION 11.8                                            Conversion
Arrangement on Call for Redemption.

 

In connection with any
redemption of Securities, the Company may arrange for the purchase and
conversion of any Securities by an agreement with one or more investment
bankers or other purchasers (the “Purchasers”) to purchase such
securities by paying to the Trustee in trust for the Holders, on or before the
Redemption Date, an amount not less than the applicable Redemption Price,
together with interest accrued and unpaid to but excluding the Redemption Date,
of such Securities. Notwithstanding anything to the contrary contained in this
Article XI, the obligation of the Company to pay the Redemption Price, together
with interest accrued and unpaid to but excluding the Redemption Date, shall be
deemed to be satisfied and discharged to the extent such amount is so paid by
such Purchasers. If such an agreement is entered into (a copy of which shall be
filed with the Trustee prior to the close of business on the Business Day
immediately prior to the Redemption Date), any Securities called for redemption
that are 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, and
consistent with any agreement or agreements with such Purchasers, to be
acquired by such Purchasers from such Holders and (notwithstanding anything to
the contrary contained in Article XII) surrendered by such Purchasers for
conversion, all as of immediately prior to the close of business on the
Redemption Date (and the right to convert any such Securities shall be extended
through such time), subject to payment of the above amount as aforesaid. At the
written direction of the Company, the Trustee shall hold and dispose of any
such amount paid to it by the Purchasers to the Holders in the same manner as
it would monies 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

 

72

 

powers, duties, 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 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 reasonable legal fees, 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.

 

ARTICLE XII

 

CONVERSION
OF SECURITIES

 

SECTION 12.1                                            Conversion
Privilege and Conversion Rate.

 

Subject to and upon
compliance with the provisions of this Article, at the option of the Holder
thereof, each U.S. $1,000 principal amount of Securities may be converted into
fully paid and nonassessable shares (calculated as to each conversion to the
nearest 1/100th of a share) of Common Stock of the Company at the Conversion
Rate, determined as hereinafter provided, in effect at the time of
conversion.  Such conversion right shall
commence on the initial issuance date of the Securities and expire at the close
of business on the date of Maturity (unless such Securities have been
previously redeemed or repurchased), subject, in the case of conversion of any
Global Security, to any Applicable Procedures. In case a Security or portion
thereof is called for redemption at the election of the Company or the Holder
thereof exercises his right to require the Company to repurchase the Security,
such conversion right in respect of the Security, or portion thereof so called,
shall expire at the close of business on the Business Day immediately preceding
the Redemption Date or the Repurchase Date, as the case may be, unless the
Company defaults in making the payment due upon redemption or repurchase, as
the case may be (in each case subject as aforesaid to any Applicable Procedures
with respect to any Global Security).

 

The rate at which shares
of Common Stock shall be delivered upon conversion (herein called the “Conversion
Rate”) shall be initially 30.7266 shares of Common Stock for each
U.S.$1,000 principal amount of Securities. The Conversion Rate shall be
adjusted in certain instances as provided in this Article XII.

 

SECTION 12.2                                            Exercise
of Conversion Privilege.

 

In order to exercise the
conversion privilege, the Holder of any Security to be converted shall surrender
such Security, duly endorsed in blank, at any office or agency of the Company
maintained for that purpose pursuant to Section 10.2, accompanied by a duly
signed conversion notice substantially in the form set forth in Section 2.4
stating that the Holder elects to convert such Security or, if less than the
entire principal amount thereof is to be converted, the portion thereof to be
converted. Each Security surrendered for conversion (in whole or in part)
during the Record Date Period shall (except in the case of any Security or
portion thereof which has been called for redemption, except pursuant to a call
for Provisional Redemption, on a Redemption Date, or is repurchasable on a
Repurchase Date, occurring, in either case, during the period from the close of
business on any Regular Record Date next preceding any Interest Payment Date to
the close of business on the second Business Day following such Interest
Payment Date and, as a

 

73

 

result, the right to convert such Security would otherwise terminate in
such period if not exercised) be accompanied by payment in New York Clearing
House funds or other funds acceptable to the Company of an amount equal to the
interest payable on such Interest Payment Date on the principal amount of such
Security (or part thereof, as the case may be) being surrendered for
conversion. The interest so payable on such Interest Payment Date with respect
to any Security (or portion thereof, if applicable) that is surrendered for
conversion during the Record Date Period shall be paid to the Holder of such
Security as of such Regular Record Date in an amount equal to the interest that
would have been payable on such Security if such Security had been converted as
of the close of business on such Interest Payment Date.  Interest payable on any Interest Payment
Date in respect of any Security surrendered for conversion on or after such
Interest Payment Date shall be paid to the Holder of such Security as of the
Regular Record Date next preceding such Interest Payment Date, notwithstanding
the exercise of the right of conversion. 
Except as provided in this paragraph and subject to the last paragraph
of Section 3.7, no cash payment or adjustment shall be made upon any conversion
on account of any interest accrued from the Interest Payment Date next
preceding the conversion date, in respect of any Security (or part thereof, as
the case may be) surrendered for conversion, or on account of any dividends on
the Common Stock issued upon conversion. The Company’s delivery to the Holder
of the number of shares of Common Stock (and cash in lieu of fractions thereof,
as provided in this Indenture) into which a Security is convertible will be
deemed to satisfy the Company’s obligation to pay the principal amount of the
Security.

 

Securities shall be
deemed to have been converted immediately prior to the close of business on the
day of surrender of such Securities for conversion in accordance with the
foregoing provisions, and at such time the rights of the Holders of such
Securities as Holders shall cease, and the Person or Persons entitled to
receive the Common Stock issuable upon conversion shall be treated for all
purposes as the record holder or holders of such Common Stock at such time. As promptly
as practicable on or after the conversion date, the Company shall issue and
deliver to the Trustee, for delivery to the Holder (unless a different Person
is indicated on the Conversion Notice), a certificate or certificates for the
number of full shares of Common Stock issuable upon conversion, together with
payment in lieu of any fraction of a share, as provided in Section 12.3.

 

All shares of Common
Stock delivered upon such conversion of Restricted Securities shall bear
restrictive legends substantially in the form of the legends required to be set
forth on the Restricted Securities pursuant to Section 3.5 and shall be subject
to the restrictions on transfer provided in such legends. Neither the Trustee
nor any agent maintained for the purpose of such conversion shall have any
responsibility for the inclusion or content of any such restrictive legends on
such Common Stock; provided, however, that the Trustee or any agent maintained
for the purpose of such conversion shall have provided, to the Company or to
the Company’s transfer agent for such Common Stock, prior to or concurrently
with a request to the Company to deliver such Common Stock, written notice that
the Securities delivered for conversion are Restricted Securities.

 

In the case of any Security
which is converted in part only, upon such conversion the Company shall execute
and the Trustee shall authenticate and deliver to the Holder thereof, at the
expense of the Company, a new Security or Securities of authorized
denominations in an aggregate principal amount equal to the unconverted portion
of the principal amount of such

 

74

 

Security. A Security may be converted in part, but only if the
principal amount of such Security to be converted is any integral multiple of
U.S. $1,000 and the principal amount of such security to remain Outstanding
after such conversion is equal to U.S. $1,000 or any integral multiple of
$1,000 in excess thereof.

 

If shares of Common Stock
to be issued upon conversion of a Restricted Security, or Securities to be
issued upon conversion of a Restricted Security in part only, are to be
registered in a name other than that of the beneficial owner of such Restricted
Security, then such Holder must deliver to the Conversion Agent a Surrender
Certificate, dated the date of surrender of such Restricted Security and signed
by such beneficial owner, as to compliance with the restrictions on transfer
applicable to such Restricted Security. Neither the Trustee nor any Conversion
Agent, Registrar or Transfer Agent shall be required to register in a name
other than that of the beneficial owner, shares of Common Stock or Securities
issued upon conversion of any such Restricted Security not so accompanied by a
properly completed Surrender Certificate.

 

SECTION 12.3                                            Fractions
of Shares.

 

No fractional shares of
Common Stock shall be issued upon conversion of any Security or Securities. If
more than one Security shall be surrendered for conversion at one time by the
same Holder, the number of full shares which shall be issuable upon conversion
thereof shall be computed on the basis of the aggregate principal amount of the
Securities (or specified portions thereof) so surrendered. Instead of any
fractional share of Common Stock that would otherwise be issuable upon
conversion of any Security or Securities (or specified portions thereof), the
Company shall calculate and pay a cash adjustment in respect of such fraction
(calculated to the nearest 1/100th of a share) in an amount equal to the same
fraction of the Closing Price Per Share at the close of business on the last
Trading Day prior to the day of conversion.

 

SECTION 12.4                                            Adjustment
of Conversion Rate.

 

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

 

(1)                                  In
case the Company shall pay or make a dividend or other distribution on shares
of any class of capital stock payable in shares of Common Stock, the Conversion
Rate in effect at the opening of business on the day following the date fixed
for the determination of shareholders entitled to receive such dividend or
other distribution shall be increased by dividing the Conversion Rate in effect
immediately prior to such date by a fraction of which the numerator shall be
the number of shares of Common Stock outstanding at the close of business on
the date fixed for such determination and the denominator shall be the sum of
such number of shares and the total number of shares constituting such dividend
or other distribution, such increase to become effective immediately after the
opening of business on the day following the date fixed for such determination.
If, after any such date fixed for determination, any dividend or distribution
is not in fact paid, the Conversion Rate shall be immediately readjusted, effective
as of the date the Board of Directors determines not to pay such dividend or
distribution, to the Conversion Rate that would have been in effect if such
determination date had not been fixed. For the purposes of this paragraph (1),
the number of shares of Common Stock at any time outstanding shall not include
shares held in the treasury of the Company but shall include shares issuable in
respect of scrip certificates issued in lieu of fractions of shares of Common
Stock.

 

75

 

The Company will not pay any dividend or make any distribution on
shares of Common Stock held in the treasury of the Company.

 

(2)                                  In
case the Company shall issue rights, options or warrants to all holders of its
Common Stock entitling them to subscribe for or purchase shares of Common Stock
at a price per share less than the current market price per share (determined
as provided in paragraph (8) of this Section 12.4) of the Common Stock on the
date fixed for the determination of stockholders entitled to receive such
rights, options or warrants (other than any rights, options or warrants that by
their terms will also be issued to any Holder upon conversion of a Security
into shares of Common Stock without any action required by the Company or any
other Person), the Conversion Rate in effect at the opening of business on the
day following the date fixed for such determination shall be increased by
dividing the Conversion Rate in effect immediately prior to such date by a
fraction of which the numerator shall be the number of shares of Common Stock
outstanding at the close of business on the date fixed for such determination
plus the number of shares of Common Stock that 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 and the denominator
shall be the number of shares of Common Stock outstanding at the close of
business on the date fixed for such determination plus the number of shares of
Common Stock so offered for subscription or purchase, such increase to become
effective immediately after the opening of business on the day following the
date fixed for such determination. If, after any such date fixed for
determination, any such rights, options or warrants are not in fact issued, or
are not exercised prior to the expiration thereof, the Conversion Rate shall be
immediately readjusted, effective as of the date such rights, options or
warrants expire, or the date the Board of Directors determines not to issue
such rights, options or warrants, to the Conversion Rate that would have been
in effect if the unexercised rights, options or warrants had never been granted
or such determination date had not been fixed, as the case may be.  For the purposes of this paragraph (2), the
number of shares of Common Stock at any time outstanding shall not include
shares held in the treasury of the Company but shall include shares issuable in
respect of scrip certificates issued in lieu of fractions of shares of Common
Stock.  The Company will not issue any
rights, options or warrants in respect of shares of Common Stock held in the
treasury of the Company.

 

(3)                                  In
case outstanding shares of Common Stock shall be subdivided into a greater
number of shares of Common Stock, the Conversion Rate in effect at the opening
of business on the day following the day upon which such subdivision becomes
effective shall be proportionately increased, and, conversely, in case
outstanding shares of Common Stock shall be combined into a smaller number of
shares of Common Stock, the Conversion Rate in effect at the opening of
business on the day following the day upon which such combination becomes
effective shall be proportionately reduced, such increase or reduction, as the
case may be, to become effective immediately after the opening of business on
the day following the day upon which such subdivision or combination becomes
effective.

 

(4)                                  In
case the Company shall, by dividend or otherwise, distribute to all holders of
its Common Stock evidences of its indebtedness, shares of any class of capital
stock or other property (including cash or assets or securities, but excluding
(i) any rights, options or warrants referred to in paragraph (2) of this
Section, (ii) any dividend or distribution paid exclusively in cash, other than
those referred to in paragraphs 5 and 6 below, (iii) any dividend or
distribution

 

76

 

referred to in paragraph (1) of this Section and (iv) any consideration
distributed in any merger or consolidation to which Section 12.11 applies), the
Conversion Rate shall be adjusted so that the same shall equal the rate
determined by dividing the Conversion Rate in effect immediately prior to the
close of business on the date fixed for the determination of stockholders
entitled to receive such distribution by a fraction of which the numerator
shall be the current market price per share (determined as provided in
paragraph (8) of this Section 12.4) of the Common Stock on the date fixed for
such determination less the then fair market value (as determined by the Board
of Directors, whose determination shall be conclusive and described in a Board
Resolution filed with the Trustee) of the portion of the assets, shares or
evidences of indebtedness so distributed applicable to one share of Common
Stock and the denominator shall be such current market price per share of the
Common Stock, such adjustment to become effective immediately prior to the
opening of business on the day following the date fixed for the determination
of stockholders entitled to receive such distribution.  If after any such date fixed for
determination, any such distribution is not in fact made, the Conversion Rate
shall be immediately readjusted, effective as of the date that the Board of
Directors determines not to make such distribution, to the Conversion Rate that
would have been in effect if such determination date had not been fixed.

 

In the event the then
fair market value (as so determined) of the portion of the evidences of
indebtedness, shares of any class of capital stock or other property so
distributed is equal to or greater than the current market price per share of
the Common Stock on such date, in lieu of the foregoing adjustment, adequate
provision shall be made so that each Holder of a Security shall have the right
to receive upon conversion the amount of such evidences of indebtedness, shares
of any class of capital stock or other property such Holder would have received
had such Holder converted each Security on such date.

 

(5)                                  In
case the Company shall, by dividend or otherwise, distribute to all holders of
its Common Stock cash (excluding cash distributed upon a merger or
consolidation to which Section 12.11 applies) in an aggregate amount that,
combined together with (I) the aggregate amount of any other all-cash
distributions to all holders of its Common Stock made exclusively in cash
within the 365-day period preceding the date of payment of such distribution
and in respect of which no adjustment pursuant to this paragraph (5) or
paragraph (6) of this Section 12.4 has been made and (II) the aggregate of any
cash plus the fair market value (as determined by the Board of Directors, whose
determination shall be conclusive and described in a Board Resolution) of any
non-cash consideration payable in respect of any tender offer by the Company or
any of its Subsidiaries for all or any portion of the Common Stock concluded
within the 365-day period preceding the date of payment of such distribution
and in respect of which no adjustment pursuant to paragraph (6) of this Section
12.4 has been made (the “combined cash and tender amount”), exceeds 1.0% of the
product of the current market price per share (determined as provided in
paragraph (8) of this Section 12.4) of the Common Stock on the date for the
determination of holders of shares of Common Stock entitled to receive such
distribution times the number of shares of Common Stock outstanding on such
date (the “aggregate current market price”), then, and in each such case,
immediately after the close of business on such date for determination, the
Conversion Rate shall be adjusted so that the same shall equal the rate
determined by dividing the Conversion Rate in effect immediately prior to the
close of business on the date fixed for determination of the stockholders
entitled to receive such distribution by a fraction (i) the numerator of which
shall be equal to the current market price per share (determined as provided in
paragraph (8) of this Section) of the Common Stock on the date fixed

 

77

 

for such determination less an amount equal to the quotient of (x) the
excess of such combined cash and tender amount over 1.0% of such aggregate current
market price divided by (y) the number of shares of Common Stock outstanding on
such date for determination and (ii) the denominator of which shall be equal to
the current market price per share (determined as provided in paragraph (8) of
this Section 12.4) of the Common Stock on such date fixed for determination.

 

(6)                                  In
case a tender offer made by the Company or any Subsidiary for all or any
portion of the Common Stock shall expire and such tender offer (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 tender offer) 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 described in a Board Resolution) that combined together
with (I) the aggregate of the cash plus the fair market value (as determined by
the Board of Directors, whose determination shall be conclusive and described
in a Board Resolution), as of the expiration of such tender offer, of any
non-cash consideration payable in respect of any other tender offer by the
Company or any Subsidiary for all or any portion of the Common Stock expiring
within the 365-day period preceding the expiration of such tender offer and in
respect of which no adjustment pursuant to this paragraph (6) or paragraph (5)
of this Section 12.4 has been made and (II) the aggregate amount of any cash
distributions to all holders of the Common Stock within 365-day period
preceding the expiration of such tender offer and in respect of which no
adjustment pursuant to paragraph (5) of this Section has been made (the
“combined tender and cash amount”) exceeds 10% of the product of the current market
price per share of the Common Stock (determined as provided in paragraph (8) of
this Section 12.4) as of the last time (the “Expiration Time”) tenders
could have been made pursuant to such tender offer (as it may be amended) times
the number of shares of Common Stock outstanding (including any tendered
shares) as of 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 so that the same shall equal the
rate determined by dividing the Conversion Rate immediately prior to the close
of business on the date of the Expiration Time by a fraction (i) the numerator
of which shall be equal to (A) the product of (I) the current market price per
share of the Common Stock (determined as provided in paragraph (8) of this
Section 12.4) on the date of the Expiration Time multiplied by (II) the number
of shares of Common Stock outstanding (including any tendered shares) on the
Expiration Time less (B) the combined tender and cash amount, and (ii) the
denominator of which shall be equal to the product of (A) the current market
price per share of the Common Stock (determined as provided in paragraph (8) of
this Section 12.4) on the date of the Expiration Time multiplied by (B) the
number of shares of Common Stock outstanding (including any tendered shares) as
of the Expiration Time less the number of all shares validly tendered 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”).

 

(7)                                  The
reclassification of Common Stock into securities other than Common Stock (other
than any reclassification upon a consolidation or merger to which Section 12.11
applies) shall be deemed to involve (a) a distribution of such securities other
than Common Stock to all holders of Common Stock (and the effective date of
such reclassification shall be deemed to be “the date fixed for the
determination of stockholders entitled to receive such distribution” and “the
date fixed for such determination” within the meaning of paragraph (4) of this
Section), and

 

78

 

(b) a subdivision or combination, as the case may be, of the number of
shares of Common Stock outstanding immediately prior to such reclassification
into the number of shares of Common Stock outstanding immediately thereafter
(and the effective date of such reclassification shall be deemed to be “the day
upon which such subdivision becomes effective” or “the day upon which such
combination becomes effective,” as the case may be, and “the day upon which
such subdivision or combination becomes effective” within the meaning of
paragraph (3) of this Section 12.4).

 

(8)                                  For
the purpose of any computation under paragraphs (2), (4), (5) or (6) of this
Section 12.4, the current market price per share of Common Stock on any date
shall be calculated by the Company and be the average of the daily Closing
Prices Per Share for the five consecutive Trading Days selected by the Company
commencing not more than 10 Trading Days before, and ending not later than the
earlier of the day in question and the day before the “ex date” with respect to
the issuance or distribution requiring such computation. For purposes of this
paragraph, the term “‘ex date,” when used with respect to any issuance or
distribution, means the first date on which the Common Stock trades regular way
in the applicable securities market or on the applicable securities exchange
without the right to receive such issuance or distribution.

 

(9)                                  No
adjustment in the Conversion Rate shall be required unless such adjustment
(plus any adjustments not previously made by reason of this paragraph (9))
would require an increase or decrease of at least one percent in such rate;
provided, however, that any adjustments which by reason of this paragraph (9)
are not required to be made shall be carried forward and taken into account in
any subsequent adjustment. All calculations under this Article shall be made to
the nearest cent or to the nearest one-hundredth of a share, as the case may
be.

 

(10)                            The
Company may make such increases in the Conversion Rate, for the remaining term
of the Securities or any shorter term, in addition to those required by paragraphs
(1), (2), (3), (4), (5) and (6) of this Section 12.4, as it considers to be
advisable in order to avoid or diminish any income tax to any holders of shares
of Common Stock resulting from any dividend or distribution of stock or
issuance of rights or warrants to purchase or subscribe for stock or from any
event treated as such for income tax purposes. The Company shall have the power
to resolve any ambiguity or correct any error in this paragraph (10) and its
actions in so doing shall, absent manifest error, be final and conclusive.

 

(11)                            Notwithstanding
the foregoing provisions of this Section, no adjustment of the Conversion Rate
shall be required to be made (a) upon the issuance of shares of Common Stock
pursuant to any present or future plan for the reinvestment of dividends, (b)
upon a change in the par value of the Common Stock, or (c) because of a tender
or exchange offer of the character described in Rule 13e-4(h)(5) under the
Exchange Act or any successor rule thereto.

 

(12)                            To the
extent permitted by applicable law, the Company from time to time may increase
the Conversion Rate by any amount for any period of time if the period is at
least twenty (20) days, the increase is irrevocable during such period, and the
Board of Directors shall have made a determination that such increase would be
in the best interests of the Company, which determination shall be conclusive;
provided, however, that no such increase shall be taken into account for
purposes of determining (i) whether the Closing Price Per Share of the
Common

 

79

 

Stock equals or exceeds 105% of the Conversion Price in connection with
an event which would otherwise be a Change of Control pursuant to Section 13.4
or (ii) whether the Closing Price Per Share of the Common Stock exceeds
140% of the Conversion Price in connection with redemption of the Securities in
accordance with the provisions in the form of Security set forth in
Section 2.2 hereof.  Whenever the
Conversion Rate is increased pursuant to the preceding sentence, the Company
shall give notice of the increase to the Holders in the manner provided in
Section 1.6 at least fifteen (15) days prior to the date the increased
Conversion Rate takes effect, and such notice shall state the increased
Conversion Rate and the period during which it will be in effect.

 

(13)                            If
Holders of the Securities exercise the right of conversion after the date the
rights issued under the Company’s rights agreement, dated as of June 17,
2002, separate from the underlying Common Stock and are therefore not entitled
to receive the common stock rights that would otherwise be attributable to the
shares of Common Stock received upon conversion, the Conversion Rate will be
adjusted as though such rights aware being distributed to holders of Common
Stock on the date of such separation, 
If such an adjustment is made and such rights are later redeemed,
invalidated or terminated, then a corresponding reversing adjustment will be
made to the Conversion Rate on an equitable basis.

 

SECTION 12.5                                            Notice
of Adjustments of Conversion Rate.

 

Whenever the Conversion
Rate is adjusted as herein provided:

 

(1)                                  the
Company shall compute the adjusted Conversion Rate in accordance with Section
12.4 and shall prepare a certificate signed by an Officer of the Company
setting forth the adjusted Conversion Rate and showing in reasonable detail the
facts upon which such adjustment is based, and such certificate shall promptly
be filed with the Trustee and with each Conversion Agent; and

 

(2)                                  upon
each such adjustment, a notice stating that the Conversion Rate has been
adjusted and setting forth the adjusted Conversion Rate shall be required, and
as soon as practicable after it is required, such notice shall be provided by
the Company to all Holders in accordance with Section 1.6.

 

Neither the Trustee nor
any Conversion Agent shall be under any duty or responsibility with respect to
any such certificate or the information and calculations contained therein,
except to exhibit the same to any Holder of Securities desiring inspection
thereof at its office during normal business hours, and shall not be deemed to
have knowledge of any adjustment in the Conversion Rate unless and until a
Responsible Officer of the Trustee shall have received such a certificate.  Until a Responsible Officer of the Trustee
receives such a certificate, the Trustee and each Conversion Agent may assume
without inquiry that the last Conversion Rate of which the Trustee has
knowledge remains in effect.

 

80

 

SECTION 12.6                                            Notice
of Certain Corporate Action.

 

In case:

 

(1)                                  the
Company shall declare a dividend (or any other distribution) on its Common
Stock payable (i) otherwise than exclusively in cash or (ii) exclusively in
cash in an amount that would require any adjustment pursuant to Section 12.4;
or

 

(2)                                  the
Company shall authorize the granting to all or substantially all of the holders
of its Common Stock of rights, options or warrants to subscribe for or purchase
any shares of capital stock of any class or of any other rights; or

 

(3)                                  of
any reclassification of the Common Stock, or of any consolidation, merger or
share exchange to which the Company is a party and for which approval of any
stockholders of the Company is required, or of the conveyance, sale, transfer
or lease of all or substantially all of the assets of the Company; or

 

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

 

then
the Company shall cause to be filed at each office or agency maintained for the
purpose of conversion of Securities pursuant to Section 10.2, and shall cause
to be provided to all Holders in accordance with Section 1.6, at least 20 days
(or 10 days in any case specified in clause (1) or (2) above and 30 days for
clause (3) above) prior to the applicable record or effective date hereinafter
specified, a notice stating (x) the date on which a record is to be taken for
the purpose of such dividend, distribution, rights, options or warrants, or, if
a record is not to be taken, the date as of which the holders of Common Stock
of record to be entitled to such dividend, distribution, rights, options or
warrants are to be determined or (y) the date on which such reclassification,
consolidation, merger, conveyance, transfer, sale, lease, dissolution,
liquidation or winding up is expected to become effective, and the date as of
which it is expected that holders of Common Stock of record shall be entitled
to exchange their shares of Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, conveyance,
transfer, sale, lease, dissolution, liquidation or winding up. Neither the
failure to give such notice or the notice referred to in the following
paragraph nor any defect therein shall affect the legality or validity of the
proceedings described in clauses (1) through (4) of this Section 12.6. If at
the time the Trustee shall not be the Conversion Agent, a copy of such notice
shall also forthwith be filed by the Company with the Trustee.

 

The Company shall cause
to be filed at the Corporate Trust Office and each office or agency maintained
for the purpose of conversion of Securities pursuant to Section 10.2, and shall
cause to be provided to all Holders in accordance with Section 1.6, notice of
any tender offer by the Company or any Subsidiary for all or any portion of the
Common Stock at or about the time that such notice of tender offer is provided
to the public generally.

 

SECTION 12.7                                            Company
to Reserve Common Stock.

 

The Company shall at all
times reserve and keep available, free from preemptive rights, out of its
authorized but unissued Common Stock, for the purpose of effecting the
conversion of

 

81

 

Securities, the full number of shares of Common Stock then issuable
upon the conversion of all Outstanding Securities.

 

SECTION 12.8                                            Taxes
on Conversions.

 

Except as provided in the
next sentence, the Company will pay all stamp taxes and other duties that may
be payable in respect of the issue or delivery of shares of Common Stock on
conversion of Securities pursuant hereto. The Company shall not, however, be
required to pay any tax or duty that may be payable in respect of
(i) income of the Holder, or (ii) any transfer involved in the issue
and delivery of shares of Common Stock in a name other than that of the Holder
of the Security or Securities to be converted, and no such issue or delivery
shall be made unless and until the Person requesting such issue has paid to the
Company the amount of any such tax or duty, or has established to the
satisfaction of the Company that such tax or duty has been paid.

 

SECTION 12.9                                            Covenant
as to Common Stock.

 

The Company agrees that
all shares of Common Stock that may be delivered upon conversion of Securities,
upon such delivery, will have been duly authorized and validly issued and will
be fully paid and nonassessable and, except as provided in Section 12.8, the
Company will pay all taxes, liens and charges with respect to the issue
thereof.

 

SECTION 12.10                                      Cancellation
of Converted Securities.

 

All Securities delivered
for conversion shall be delivered to the Trustee or its agent to be canceled by
or at the direction of the Trustee, which shall dispose of the same as provided
in Section 3.9.

 

SECTION 12.11                                      Provision
in Case of Consolidation, Merger or Sale of Assets.

 

In case of any
consolidation or merger of the Company with or into any other Person or any
merger of another Person with or into the Company (other than a merger that
does not result in any reclassification, conversion, exchange or cancellation
of outstanding shares of Common Stock of the Company) or any conveyance, sale,
transfer or lease of all or substantially all of the assets of the Company
(other than a sale of all or substantially all of the assets of the Company
that does not result in any reclassification, conversion, exchange or
cancellation of outstanding shares of Common Stock of the Company), the Person
formed by such consolidation or resulting from such merger or which acquires
such assets, as the case may be, shall execute and deliver to the Trustee a
supplemental indenture providing that the Holder of each Security then
Outstanding shall have the right thereafter, during the period such Security
shall be convertible as specified in Section 12.1, to convert such Security
only into the kind and amount of securities, cash and other property receivable
upon such consolidation, merger, conveyance, sale, transfer or lease by a
holder of the number of shares of Common Stock of the Company into which such
Security might have been converted immediately prior to such consolidation,
merger, conveyance, sale, transfer or lease, assuming such holder of Common
Stock of the Company (i) is not (A) a Person with which the Company
consolidated or merged with or into or which merged into or with the Company or
to which such conveyance, sale, transfer or lease was made, as the case may be
(a “Constituent Person”), or (B) an Affiliate of a Constituent Person
and (ii)

 

82

 

failed to exercise his rights of election, if any, as to the kind or
amount of securities, cash and other property receivable upon such
consolidation, merger, conveyance, sale, transfer or lease (provided that if the
kind or amount of securities, cash and other property receivable upon such
consolidation, merger, conveyance, sale, transfer or lease is not the same for
each share of Common Stock of the Company held immediately prior to such
consolidation, merger, conveyance, sale, transfer or lease by others than a
Constituent Person or an Affiliate thereof and in respect of which such rights
of election shall not have been exercised (“Non-electing Share”), then
for the purpose of this Section 12.11 the kind and amount of securities, cash
and other property receivable upon such consolidation, merger, conveyance,
sale, transfer or lease by the holders of each Non-electing Share shall be
deemed to be the kind and amount so receivable per share by a plurality of the
Non-electing Shares). Such supplemental indenture shall provide for adjustments
that, for events subsequent to the effective date of such supplemental
indenture, shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Article. The above provisions of this Section
12.11 shall similarly apply to successive consolidations, mergers, conveyances,
sales, transfers or leases.  Notice of
the execution of such a supplemental indenture shall be given by the Company to
the Holder of each Security as provided in Section 1.6 promptly upon such
execution.

 

Neither the Trustee nor
any Conversion Agent shall be under any responsibility to determine the
correctness of any provisions contained in any such supplemental indenture
relating either to the kind or amount of shares of stock or other securities or
property or cash receivable by Holders of Securities upon the conversion of
their Securities after any such consolidation, merger, conveyance, transfer,
sale or lease or to any such adjustment, but may accept as conclusive evidence
of the correctness of any such provisions, and shall be protected in relying
upon, an Officer Certificate or an Opinion of Counsel with respect thereto,
which the Company shall cause to be furnished to the Trustee upon request.

 

SECTION 12.12                                      Rights
Issued in Respect of Common Stock.

 

Rights or warrants
distributed by the Company to all holders of Common Stock entitling the holders
thereof to subscribe for or purchase shares of the Company’s capital stock
(either initially or under certain circumstances), which rights or warrants,
until the occurrence of a specified event or events (“Trigger Event”):

 

(i)                                     are
deemed to be transferred with such shares of Common Stock,

 

(ii)                                  are
not exercisable, and

 

(iii)                               are
also issued in respect of future issuances of Common Stock

 

shall
not be deemed distributed for purposes of Section 12.4(2) until the occurrence
of the earliest Trigger Event.  In
addition, in the event of any distribution of rights or warrants, or any
Trigger Event with respect thereto, that shall have resulted in an adjustment
to the Conversion Rate under Section 12.4(2), (1) in the case of any such
rights or warrants that shall all have been redeemed or repurchased without
exercise by any holders thereof, the Conversion Rate shall be readjusted upon
such final redemption or repurchase to give effect to such distribution or
Trigger Event, as the case may be, as though it were a cash distribution, equal
to the per share

 

83

 

redemption or repurchase price received by a holder of Common Stock
with respect to such rights or warrants (assuming such holder had retained such
rights or warrants), made to all holders of Common Stock as of the date of such
redemption or repurchase, and (2) in the case of any such rights or
warrants all of which shall have expired without exercise by any holder
thereof, the Conversion Price shall be readjusted as if such issuance had not
occurred.

 

SECTION 12.13                                      Responsibility
of Trustee for Conversion Provisions.

 

The Trustee, subject to
the provisions of Section 6.1, and any Conversion Agent shall not at any time
be under any duty or responsibility to any Holder of Securities to determine
whether any facts exist which may require any adjustment of the Conversion
Rate, or with respect to the nature or extent of any such adjustment when made,
or with respect to the method employed, herein or in any supplemental indenture
provided to be employed, in making the same, or whether a supplemental indenture
need be entered into. Neither the Trustee, subject to the provisions of Section
6.1, nor any Conversion Agent shall be accountable with respect to the validity
or value (or the kind or amount) of any Common Stock, or of any other
securities or property or cash, which may at any time be issued or delivered
upon the conversion of any Security; and it or they do not make any
representation with respect thereto. Neither the Trustee, subject to the
provisions of Section 6.1, nor any Conversion Agent shall be responsible for
any failure of the Company to make or calculate any cash payment or to issue,
transfer or deliver any shares of Common Stock or share certificates or other
securities or property or cash upon the surrender of any Security for the
purpose of conversion; and the Trustee, subject to the provisions of Section
6.1, and any Conversion Agent shall not be responsible for any failure of the
Company to comply with any of the covenants of the Company contained in this
Article.

 

ARTICLE XIII

 

REPURCHASE
OF SECURITIES AT THE OPTION OF THE

HOLDER UPON A CHANGE IN CONTROL

 

SECTION 13.1                                            Right
to Require Repurchase.

 

In the event that a
Change in Control (as hereinafter defined) shall occur, then each Holder shall
have the right, at the Holder’s option, but subject to the provisions of
Section 13.2, to require the Company to repurchase, and upon the exercise of
such right the Company shall repurchase, all of such Holder’s Securities not
theretofore called for redemption, or any portion of the principal amount thereof
that is equal to U.S. $1,000 or any integral multiple of U.S. $1,000 in excess
thereof (provided that no single Security may be repurchased in part unless the
portion of the principal amount of such Security to be Outstanding after such
repurchase is equal to U.S. $1,000 or integral multiples of U.S. $1,000 in
excess thereof), on the date (the “Repurchase Date”) that is 45 days
after the date of the Company Notice (as defined in Section 13.3) (or if such
date is not a Business Day than the next succeeding Business Day) at a purchase
price equal to 100% of the principal amount of the Securities to be repurchased
plus interest accrued but unpaid to, but excluding, the Repurchase Date (the “Repurchase
Price”); provided, however, that installments of interest on Securities
whose Stated Maturity is on or prior to the Repurchase Date shall be payable to
the Holders of such Securities, or one or more Predecessor Securities,
registered as such on the relevant Record Date according to their terms and the

 

84

 

provisions of Section 3.7. Such right to require the repurchase of the
Securities shall not continue after a discharge of the Company from its
obligations with respect to the Securities in accordance with Article IV,
unless a Change in Control shall have occurred prior to such discharge. At the
option of the Company, the Repurchase Price may be paid in cash or, subject to
the fulfillment by the Company of the conditions set forth Section 13.2, by
delivery of shares of Common Stock having a fair market value equal to the
Repurchase Price (less any cash payments), or a combination of cash and Common
Stock. Whenever in this Indenture (including Sections 2.2, 3.1, 5.1(1) and 5.8)
there is a reference, in any context, to the principal of any Security as of
any time, such reference shall be deemed to include reference to the Repurchase
Price payable in respect of such Security to the extent that such Repurchase
Price is, was or would be so payable at such time, and express mention of the
Repurchase Price in any provision of this Indenture shall not be construed as
excluding the Repurchase Price in those provisions of this Indenture when such
express mention is not made.

 

SECTION 13.2                                            Conditions
to the Company’s Election to Pay the Repurchase Price in Common Stock.

 

The Company may, at its
option, pay the Repurchase Price in cash, in Common Stock or a combination
thereof.  To the extent the Repurchase
Price is paid in Common Stock, the Company may elect to pay such amount by
delivery of shares of Common Stock pursuant to Section 13.1 if and only if the
following conditions shall have been satisfied:

 

(1)                                  The
shares of Common Stock deliverable in payment of the Repurchase Price less any
cash payments shall have a fair market value as of the Repurchase Date of not
less than the Repurchase Price less any cash payments. For purposes of Section
13.1 and this Section 13.2, the fair market value of shares of Common Stock
shall be determined by the Company and shall be equal to 95% of the average of
the Closing Prices Per Share of the Common Stock for the five consecutive
Trading Days ending on the third Trading Day prior to the Repurchase Date;

 

(2)                                  The
Repurchase Price shall be paid only in cash in the event any shares of Common
Stock to be issued upon repurchase of Securities hereunder (i) require
registration under any Federal securities law before such shares may be freely
transferable without being subject to any transfer restrictions under the
Securities Act upon repurchase and if such registration is not completed or
does not become effective prior to the Repurchase Date, and/or (ii) require
registration with or approval of any governmental authority under any state law
or any other Federal law before such shares may be validly issued or delivered
upon repurchase and if such registration is not completed or does not become
effective or such approval is not obtained prior to the Repurchase Date;

 

(3)                                  Payment
of the Repurchase Price may not be made in Common Stock unless such stock is,
or shall have been, listed on a national securities exchange or approved for
quotation on The Nasdaq National Market, in either case, on or prior to the
Repurchase Date; and

 

(4)                                  All
shares of Common Stock that may be issued upon repurchase of Securities will be
issued out of the Company’s authorized but unissued Common Stock and will, upon
issue, be duly and validly issued and fully paid and non-assessable and free of
any preemptive or similar rights.

 

85

 

If all of the conditions
set forth in this Section 13.2 are not satisfied in accordance with the terms
thereof, the Repurchase Price shall be paid by the Company only in cash.

 

SECTION 13.3                                            Notices;
Method of Exercising Repurchase Right, Etc.

 

(1)                                  Unless
the Company shall have theretofore called for redemption all of the Outstanding
Securities, on or before the 30th day after the occurrence of a Change in
Control, the Company or, at the request (and expense) of the Company on or
before the 15th day after such occurrence, the Trustee, shall give to all
Holders of Securities, in the manner provided in Section 1.6, notice (the “Company
Notice”) of the occurrence of the Change of Control and of the repurchase
right set forth herein arising as a result thereof.  The Company shall also deliver a copy of such Company Notice to
the Trustee.

 

Each Company Notice shall
state:

 

(i)                                     the
Repurchase Date,

 

(ii)                                  the
date by which the repurchase right must be exercised,

 

(iii)                               the
Repurchase Price, and whether the Repurchase Price shall be paid by the Company
in cash or by delivery of shares of Common Stock or a combination thereof (and
the applicable ratio of cash and Common Stock),

 

(iv)                              a
description of the procedure that a Holder must follow to exercise a repurchase
right, and the place or places where such Securities are to be surrendered for
payment of the Repurchase Price and accrued interest (including Liquidated
Damages, if any), if any to the Repurchase Date,

 

(v)                                 that
on the Repurchase Date the Repurchase Price, and accrued interest (including
Liquidated Damages, if any), if any to the Repurchase Date, will become due and
payable upon each such Security designated by the Holder to be repurchased, and
that interest thereon shall cease to accrue on and after said date,

 

(vi)                              the
Conversion Rate then in effect, the date on which the right to convert the
principal amount of the Securities to be repurchased will terminate and the
place or places where such Securities may be surrendered for conversion, and

 

(vii)                           the
place or places that the Security certificate with the Election of Holder to
Require Repurchase as specified in Section 2.2 shall be delivered, and if the
Security is a Restricted Securities certificate the place or places that the
Surrender Certificate required by Section 13.3(9) shall be delivered.

 

No failure of the Company
to give the foregoing notices or defect therein shall limit any Holder’ s right
to exercise a repurchase right or affect the validity of the proceedings for
the repurchase of Securities.

 

If any of the foregoing
provisions or other provisions of this Article XIII are inconsistent with
applicable law, such law shall govern.

 

86

 

(2)                                  To
exercise a repurchase right, a Holder shall deliver to the Trustee on or before
the 30th day after the date of the Company Notice (i) irrevocable written
notice of the Holder’s exercise of such right, which notice shall set forth the
name of the Holder, the principal amount of the Securities to be repurchased
(and, if any Security is to repurchased in part, the serial number thereof, the
portion of the principal amount thereof to be repurchased and the name of the
Person in which the portion thereof to remain Outstanding after such repurchase
is to be registered) and a statement that an election to exercise the
repurchase right is being made thereby, and, in the event that any portion of
the Repurchase Price shall be paid in shares of Common Stock, the name or names
(with addresses) in which the certificate or certificates for shares of Common
Stock shall be issued, and (ii) the Securities with respect to which the
repurchase right is being exercised. Such written notice shall be irrevocable,
except that the right of the Holder to convert the Securities with respect to
which the repurchase right is being exercised shall continue until the close of
business on the Business Day immediately preceding the Repurchase Date.

 

(3)                                  In
the event a repurchase right shall be exercised in accordance with the terms
hereof, the Company shall pay or cause to be paid to the Trustee the Repurchase
Price in cash or shares of Common Stock or a combination thereof, as provided
above, for payment to the Holder on the Repurchase Date or, if shares of Common
Stock are to be paid, on the date that is 45 days after the date of the
Company’s Notice, together with accrued and unpaid interest to the Repurchase
Date payable with respect to the Securities as to which the repurchase right
has been exercised; provided, however, that installments of interest that
mature on or prior to the Repurchase Date shall be payable in cash to the
Holders of such Securities, or one or more Predecessor Securities, registered
as such at the close of business on the relevant Regular Record Date.

 

(4)                                  If
any Security (or portion thereof) surrendered for repurchase shall not be so
paid on the Repurchase Date, the principal amount of such Security (or portion
thereof, as the case may be) shall, until paid, bear interest to the extent
permitted by applicable law from the Repurchase Date at the rate of 2.25% per
annum, and each Security shall remain convertible into Common Stock until the
principal of such Security (or portion thereof, as the case may be) shall have
been paid or duly provided for.

 

(5)                                  Any
Security that is to be repurchased only in part shall be surrendered to the
Trustee (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 his attorney duly authorized in
writing), and the Company shall execute, and the Trustee shall authenticate and
make available for delivery to the Holder of such Security without service
charge, a new Security or Securities, containing identical terms and
conditions, each in an authorized denomination in aggregate principal amount
equal to and in exchange for the unrepurchased portion of the principal of the
Security so surrendered.

 

(6)                                  Any
issuance of shares of Common Stock in respect of any portion of the Repurchase
Price shall be deemed to have been effected immediately prior to the close of
business on the Repurchase Date and the Person or Persons in whose name or
names any certificate or certificates for shares of Common Stock shall be issuable
upon such repurchase shall be deemed to have become on the Repurchase Date the
holder or holders of record of the

 

87

 

shares represented thereby; provided, however, that any surrender for
repurchase on a date when the stock transfer books of the Company shall be
closed shall constitute the Person or Persons in whose name or names the
certificate or certificates for such shares are to be issued as the record
holder or holders thereof for all purposes at the opening of business on the
next succeeding day on which such stock transfer books are open. No payment or
adjustment shall be made for dividends or distributions on any Common Stock
issued upon repurchase of any Security declared prior to the Repurchase Date.

 

(7)                                  No
fractions of shares shall be issued upon repurchase of Securities. If more than
one Security shall be repurchased from the same Holder and any portion of the
Repurchase Price shall be payable in shares of Common Stock, the number of full
shares that shall be issuable upon such repurchase shall be computed on the
basis of the aggregate principal amount of the Securities so repurchased.
Instead of any fractional share of Common Stock that would otherwise be
issuable on the repurchase of any Security or Securities, the Company will
deliver to the applicable Holder its check for the current market value of such
fractional share. The current market value of a fraction of a share is
determined by multiplying the current market price of a full share by the
fraction, and rounding the result to the nearest cent. For purposes of this
Section, the current market price of a share of Common Stock is the Closing
Price Per Share of the Common Stock on the Trading Day immediately preceding
the Repurchase Date.

 

(8)                                  Any
issuance and delivery of certificates for shares of Common Stock on repurchase
of Securities shall be made without charge to the Holder of Securities being
repurchased for such certificates or for any tax or duty in respect of the
issuance or delivery of such certificates or the securities represented
thereby; provided, however, that the Company shall not be required to pay any
tax or duty that may be payable in respect of (i) income of the Holder or (ii)
any transfer involved in the issuance or delivery of certificates for shares of
Common Stock in a name other than that of the Holder of the Securities being
repurchased, and no such issuance or delivery shall be made unless and until
the Person requesting such issuance or delivery has paid to the Company the
amount of any such tax or duty or has established, to the satisfaction of the
Company, that such tax or duty has been paid.

 

(9)                                  If
shares of Common Stock to be delivered upon repurchase of a Security are to be
registered in a name other than that of the beneficial owner of such Security,
then such Holder must deliver to the Trustee a Surrender Certificate, dated the
date of surrender of such Restricted Security and signed by such beneficial
owner, as to compliance with the restrictions on transfer applicable to such
Restricted Security. Neither the Trustee nor any Registrar or Transfer Agent or
other agents shall be required to register in a name other than that of the
beneficial owner shares of Common Stock issued upon repurchase of any such
Restricted Security not so accompanied by a properly completed Surrender
Certificate.

 

(10)                            All
Securities delivered for repurchase shall be delivered to the Trustee to be
canceled at the direction of the Trustee, which shall dispose of the same as
provided in Section 3.9.

 

88

 

SECTION 13.4                                            Certain
Definitions.

 

For purposes of this
Article XIII,

 

(1)                                  the
term “beneficial owner” shall be determined in accordance with Rule 13d-3, as
in effect on the date of the original execution of this Indenture, promulgated
by the Commission pursuant to the Exchange Act;

 

(2)                                  a
“Change in Control” shall be deemed to have occurred at the time, after
the original issuance of the Securities, of:

 

(i)                                     the
acquisition by any Person (including any syndicate or group deemed to be a
“person” under Section 13(d)(3) of the Exchange Act) of beneficial ownership,
directly or indirectly, through a purchase, merger or other acquisition
transaction or series of transactions, of shares of capital stock of the
Company entitling such person to exercise 50% or more of the total voting power
of all shares of capital stock of the Company entitled to vote generally in the
elections of directors, other than any such acquisition by the Company, any
Subsidiary of the Company or any employee benefit plan of the Company; or

 

(ii)                                  any
consolidation of the Company with, or merger of the Company into, any other
Person, any merger of another Person into the Company, or any conveyance, sale,
transfer or lease of all or substantially all of the assets of the Company to
another Person (other than (a) any such transaction (x) that does not result in
any reclassification, conversion, exchange or cancellation of outstanding
shares of capital stock of the Company and (y) pursuant to which the holders of
50% or more of the total voting power of all shares of the Company’s capital
stock entitled to vote generally in the election of directors immediately prior
to such transaction have the entitlement to exercise, directly or indirectly,
50% or more of the total voting power of all shares of capital stock entitled
to vote generally in the election of directors of the continuing or surviving
corporation immediately after such transaction or (b) any transaction which is
effected solely to change the jurisdiction of incorporation of the Company and
results in a reclassification, conversion or exchange of outstanding shares of
Common Stock solely into shares of common stock of the surviving entity);

 

(iii)                               provided,
however, that a Change in Control shall not be deemed to have occurred if
(I) the Closing Price Per Share of the Common Stock for any five Trading
Days within the period of 10 consecutive Trading Days ending immediately after
the later of the date of the Change in Control or the date of the public
announcement of the Change in Control (in the case of a Change in Control under
clause (i) above) or the period of 10 consecutive Trading Days ending
immediately before the Change in Control (in the case of a Change in Control
under clause (ii) above) shall, in the case of each of such five Trading Days,
equal or exceed 105% of the Conversion Price of the Securities in effect on
each of such five Trading Days or (II) all of the consideration (excluding
cash payments for fractional shares and cash payments made pursuant to
dissenters’ appraisal rights) in a merger or consolidation otherwise
constituting a Change of Control under clause (i) and/or clause (ii) above
consists of shares of common stock, depository 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

 

89

 

consolidation the Securities become convertible solely into such common
stock, depository receipts or other certificates representing common equity
interests;

 

(3)                                  the
term “Conversion Price” shall equal U.S.$1,000 divided by the Conversion
Rate (rounded to the nearest cent); and

 

(4)                                  for
purposes of Section 13.4(2)(i), the term “person” shall include any syndicate
or group which would be deemed to be a “person” under Section 13(d)(3) of the
Exchange Act, as in effect on the date of the original execution of this
Indenture.

 

SECTION 13.5                                            Consolidation,
Merger, etc.

 

In the case of any
merger, consolidation, conveyance, sale, transfer or lease of all or
substantially all of the assets of the Company to which Section 12.11 applies,
in which the Common Stock of the Company is changed or exchanged as a result
into the right to receive shares of stock and other securities or property or
assets (including cash) which includes shares of Common Stock of the Company or
common stock of another Person that are, or upon issuance will be, traded on a
United States national securities exchange or approved for trading on an
established automated over-the-counter trading market in the United States and
such shares constitute at the time such change or exchange becomes effective in
excess of 50% of the aggregate fair market value of such shares of stock and
other securities, property and assets (including cash) (as determined by the
Company, which determination shall be conclusive and binding), then the Person
formed by such consolidation or resulting from such merger or combination or
which acquires the properties or assets (including cash) of the Company, as the
case may be, shall execute and deliver to the Trustee a supplemental indenture
(which shall comply with the Trust Indenture Act as in force at the date of
execution of such supplemental indenture) modifying the provisions of this
Indenture relating to the right of Holders to cause the Company to repurchase
the Securities following a Change in Control, including without limitation the
applicable provisions of this Article XIII and the definitions of the Common
Stock and Change in Control, as appropriate, and such other related definitions
set forth herein as determined in good faith by the Company (which
determination shall be conclusive and binding), to make such provisions apply
in the event of a subsequent Change in Control to the common stock and the
issuer thereof if different from the Company and Common Stock of the Company
(in lieu of the Company and the Common Stock of the Company).

 

ARTICLE XIV

 

HOLDERS
LISTS AND REPORTS BY TRUSTEE AND COMPANY; NON-RECOURSE

 

SECTION 14.1                                            Company
to Furnish Trustee Names and Addresses of Holders.

 

The Company will furnish
or cause to be furnished to the Trustee:

 

(1)                                  semi-annually,
not more than 15 days after the Regular Record Date, a list, in such form as
the Trustee may reasonably require, of the names and addresses of the Holders
of Securities as of such Regular Record Date, and

 

90

 

(2)                                  at
such other times as the Trustee may reasonably request in writing, within 30
days after the receipt by the Company of any such request, a list of similar
form and content as of a date not more than 15 days prior to the time such list
is furnished;

 

provided, however, that
no such list need be furnished so long as the Trustee is acting as Security
Registrar.

 

SECTION 14.2                                            Preservation
of Information.

 

(1)                                  The
Trustee shall preserve, in as current a form as is reasonably practicable, the
names and addresses of Holders contained in the most recent list furnished to
the Trustee as provided in Section 14.1 and the names and addresses of Holders
received by the Trustee in its capacity as Security Registrar. The Trustee may
destroy any list, if any, furnished to it as provided in Section 14.1 upon
receipt of a new list so furnished.

 

(2)                                  After
this Indenture has been qualified under the Trust Indenture Act, the rights of
Holders to communicate with other Holders with respect to their rights under
this Indenture or under the Securities, and the corresponding rights, and
duties of the Trustee, shall be as provided by the Trust Indenture Act.

 

(3)                                  Every
Holder of Securities, by receiving and holding the same, agrees with the
Company and the Trustee that neither the Company nor the Trustee nor any agent
of either of them shall be held accountable by reason of any disclosure of
information as to names and addresses of Holders made pursuant to the Trust
Indenture Act.

 

SECTION 14.3                                            Reports
by Trustee.

 

(1)                                  After
this Indenture has been qualified under the Trust Indenture Act, the Trustee
shall transmit to Holders such reports concerning the Trustee and its actions
under this Indenture as may be required pursuant to the Trust Indenture Act at
the times and in the manner provided pursuant thereto.

 

(2)                                  After
this Indenture has been qualified under the Trust Indenture Act, a copy of each
such report shall, at the time of such transmission to Holders, be filed by the
Trustee with each stock exchange upon which the Securities are listed, with the
Commission and with the Company. The Company will notify the Trustee when the
Securities are listed on any stock exchange.

 

SECTION 14.4                                            Reports
by Company.

 

After this Indenture has
been qualified under the Trust Indenture Act, the Company shall file with the
Trustee and the Commission, and transmit to Holders, such information,
documents and other reports, and such summaries thereof, as may be required
pursuant to the Trust Indenture Act at the times and in the manner provided
pursuant to such Act; provided that any such information, documents or reports
required to be filed with the Commission pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 shall be filed with the Trustee within 15 days
after the same is so required to be filed with the Commission.

 

91

 

ARTICLE XV

 

IMMUNITY
OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

 

SECTION 15.1                                            Indenture
and Securities Solely Corporate Obligations.

 

No recourse for the
payment of the principal of or premium, if any, or interest (including
Liquidated Damages, if any) on any Security and no recourse under or upon any
obligation, covenant or agreement of the Company in this Indenture or in any
supplemental indenture or in any Security, or because of the creation of any
indebtedness represented thereby, shall be had against any past, present or
future incorporator, stockholder, employee, agent, officer, or director or
subsidiary, as such, of the Company or of any successor corporation, whether by
virtue of any constitution, statute or rule of law, or by the enforcement of
any assessment or penalty or otherwise; it being expressly understood that all
such liability is hereby waived and released as a condition of, and as a
consideration for, the execution of this Indenture and the issue of the
Securities.

 

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

 

92

 

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

 

	
   

  	
  AMYLIN PHARMACEUTICALS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ,

  
	
   

  	
   

  	
  as Trustee

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

93

 

ANNEX A — Form of Unrestricted Securities Certificate

 

UNRESTRICTED SECURITIES CERTIFICATE

 

(For removal of Restricted Securities Legend pursuant
to Section 3.5(3))

 

[Trustee
name and address]

 

[                                        ]

 

RE:                              2.25%
CONVERTIBLE SENIOR NOTES DUE JUNE 30, 2008 OF AMYLIN PHARMACEUTICALS, INC. (THE
“SECURITIES”)

 

Reference is made to the
Indenture, dated as of  June, 23, 2003
(the “Indenture”), from Amylin Pharmaceuticals, Inc. (the “Company”) to J.P.
Morgan Trust Company, National Association, as Trustee.  Terms used herein and defined in the
Indenture or in Rule 144 under the U.S. Securities Act of 1933 (the “Securities
Act”) are used herein as so defined.

 

This certificate relates
to
U.S.$                           
principal amount of Securities, which are evidenced by the following
certificate(s) (the “Specified Securities”):

 

CUSIP No.
[                   ]

 

CERTIFICATE No(s).
                                

 

The person in whose name
this certificate is executed below (the “Undersigned”) hereby certifies that
either (i) it is the sole beneficial owner of the Specified Securities or (ii)
it is acting on behalf of all the beneficial owners of the Specified Securities
and is duly authorized by them to do so. Such beneficial owner or owners are
referred to herein collectively as the “Owner”. If the Specified Securities are
represented by a Global Security, they are held through the Depositary or an
Agent Member in the name of the Undersigned, as or on behalf of the Owner.  If the Specified Securities are not
represented by a Global Security, they are registered in the name of the
Undersigned, as or on behalf of the Owner.

 

The Owner has requested
that the Specified Securities be exchanged for Securities bearing no Restricted
Securities Legend pursuant to Section 3.5(3) of the Indenture. In connection
with such exchange, the Owner hereby certifies that the exchange is occurring
after a period of at least two years has elapsed since the Issue Date, and the
Owner is not, and during the preceding three months has not been, an affiliate
of the Company.  The Owner also
acknowledges that any future transfers of the Specified Securities must comply
with all applicable securities laws of the States of the United States and
other jurisdictions.

 

This certificate and the
statements contained herein are made for your benefit and the benefit of the
Company and the Initial Purchasers.

 

	
  Dated:

  	
   

  	
   

  

 

94

 

(Print
the name of the Undersigned, as such term is defined in the third paragraph of
this certificate.)

 

	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
				

 

(If the
Undersigned is a corporation, partnership or fiduciary, the title of the person
signing on behalf of the Undersigned must be stated.)

 

95

 

ANNEX B — Form of Surrender Certificate

 

In connection with the
certification contemplated by Section 12.2 or 13.3(9) relating to compliance
with certain restrictions relating to transfers of Restricted Securities, such
certification shall be provided substantially in the form of the following
certificate, with only such changes thereto as shall be approved by the Company
and the Initial Purchasers.

 

CERTIFICATE

 

AMYLIN PHARMACEUTICALS, INC.

 

2.25% CONVERTIBLE SENIOR NOTES DUE JUNE 30, 2008

 

This is to certify that
as of the date hereof with respect to U.S.
$                  
principal amount of the above-captioned securities surrendered on the date
hereof (the “Surrendered Securities”) for registration of transfer, or for
conversion or repurchase where the securities issuable upon such conversion or
repurchase are to be registered in a name other than that of the undersigned
Holder (each such transaction being a “transfer”), the undersigned Holder (as
defined in the Indenture) certifies that the transfer of Surrendered Securities
associated with such transfer complies with the restrictive legend set forth on
the face of the Surrendered Securities for the reason checked below:

 

o    The
transfer of the Surrendered Securities complies with Rule 144A under the
Securities Act; or

 

o    The
transfer of the Surrendered Securities complies with Rule 144 under the United
States Securities Act of 1933, as amended (the “Securities Act”); or

 

o   The
transfer of the Surrendered Securities has been made to an institution that is
an “accredited investor” within the meaning of Rule 501(a)(1), (2), (3) or (7)
under the Securities Act in a transaction exempt from the registration
requirements of the Securities Act and a signed letter containing certain
representations and agreements relating to restrictions on transfer of the
Securities has been delivered (and if such transfer is for an aggregate
principal amount less than $250,000 an opinion of counsel acceptable to the
Company if requested by the Company, that such transfer is exempt from registration);
or

 

o   The
transfer of the Surrendered Securities has been made pursuant to an exemption
from registration under the Securities Act and an opinion of counsel has been
delivered to the Company with respect to such transfer.

 

[Name
of Holder]

 

	
  Dated:

  	
   

  	
   

  

*To be
dated the date of surrender

 

96

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