Document:

<PAGE>

                                                                     Exhibit 4.1

                               CELL GENESYS, INC.

                    3.125% CONVERTIBLE SENIOR NOTES DUE 2011

                                    INDENTURE

                          DATED AS OF OCTOBER 20, 2004

                         U.S. BANK NATIONAL ASSOCIATION

                                     TRUSTEE

<PAGE>

                            CROSS-REFERENCE TABLE (1)

<TABLE>
<CAPTION>
TRUST INDENTURE ACT SECTIONS                                                       INDENTURE SECTION
----------------------------                                                       -----------------
<S>                                                                                <C>
Section 310     (a)(1)                                                                         7.10
                (a)(2)                                                                         7.10
                (a)(3)                                                               Not Applicable
                (a)(4)                                                               Not Applicable
                (a)(5)                                                                         7.10
                (b)                                                                       7.8; 7.10
                (c)                                                                  Not Applicable

Section 311     (a)                                                                            7.11
                (b)                                                                            7.11
                (c)                                                                  Not Applicable

Section 312     (a)                                                                             2.5
                (b)                                                                            11.3
                (c)                                                                            11.3

Section 313     (a)                                                                             7.6
                (b)                                                                             7.6
                (c)                                                                             7.6
                (d)                                                                             7.6

Section 314     (a)                                                                        4.2; 4.3
                (b)                                                                  Not Applicable
                (c)                                                                            11.4
                (d)                                                                  Not Applicable
                (e)                                                                            11.5
                (p)                                                                  Not Applicable

Section 315     (a)                                                                             7.1
                (b)                                                                             7.5
                (c)                                                                             7.1
                (d)                                                                             7.1
                (e)                                                                            6.11

Section 316     (a)(1)(A)                                                                       6.5
                (a)(1)(B)                                                                       6.4
                (a)(2)                                                               Not Applicable
                (b)                                                                             6.7
                (c)                                                                             1.5
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                           <C>
Section 317     (a)(1)                                                                          6.8
                (a)(2)                                                                          6.9
                (b)                                                                             2.4

Section 318     (a)                                                                            11.1
</TABLE>

(1)   This Cross-Reference Table shall not (i) be deemed, for any purpose, to
      constitute part of the Indenture, nor (ii) have any bearing on the
      interpretation of any of its terms or provisions

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                       Page
                                                                                                                       ----
<S>                                                                                                                    <C>
ARTICLE I. DEFINITIONS AND INCORPORATION BY REFERENCE............................................................        1

         Section 1.1        Definitions..........................................................................        1
         Section 1.2        Other Definitions....................................................................        5
         Section 1.3        Incorporation by Reference of Trust Indenture Act....................................        6
         Section 1.4        Rules of Construction................................................................        7
         Section 1.5        Acts of Holders......................................................................        7

ARTICLE II. THE SECURITIES.......................................................................................        8

         Section 2.1        Form and Dating......................................................................        8
         Section 2.2        Execution and Authentication.........................................................        9
         Section 2.3        Registrar, Paying Agent and Conversion Agent.........................................       10
         Section 2.4        Paying Agent to Hold Money and Securities in Trust...................................       10
         Section 2.5        Securityholder Lists.................................................................       11
         Section 2.6        Transfer and Exchange................................................................       11
         Section 2.7        Replacement Securities...............................................................       13
         Section 2.8        Outstanding Securities; Determinations of Holders' Action............................       13
         Section 2.9        Temporary Securities.................................................................       14
         Section 2.10       Cancellation.........................................................................       15
         Section 2.11       Persons Deemed Owners................................................................       15
         Section 2.12       Global Securities....................................................................       15
         Section 2.13       CUSIP Numbers........................................................................       20

ARTICLE III. REDEMPTION AND PURCHASES............................................................................       21

         Section 3.1        Company's Right to Redeem; Notices to Trustee........................................       21
         Section 3.2        Selection of Securities to Be Redeemed...............................................       21
         Section 3.3        Notice of Redemption.................................................................       21
         Section 3.4        Effect of Notice of Redemption.......................................................       22
         Section 3.5        Deposit of Redemption Price..........................................................       22
         Section 3.6        Securities Redeemed in Part..........................................................       23
         Section 3.7        Purchase of Securities at Option of the Holder upon Fundamental Change...............       23
         Section 3.8        Effect of Fundamental Change Purchase Notice; Withdrawal.............................       27
         Section 3.9        Deposit of Fundamental Change Purchase Price.........................................       28
         Section 3.10       Securities Purchased in Part.........................................................       28
         Section 3.11       Covenant to Comply With Securities Laws Upon Purchase of Securities..................       28
         Section 3.12       Repayment to the Company.............................................................       28

</TABLE>

<PAGE>

<TABLE>
<S>                                                                                                                     <C>
ARTICLE IV. COVENANTS............................................................................................       28

         Section 4.1        Payment of Securities................................................................       28
         Section 4.2        SEC and Other Reports................................................................       29
         Section 4.3        Compliance Certificate...............................................................       29
         Section 4.4        Further Instruments and Acts.........................................................       29
         Section 4.5        Maintenance of Office or Agency......................................................       29
         Section 4.6        Delivery of Certain Information......................................................       30
         Section 4.7        Treatment of Securities..............................................................       30
         Section 4.8        Additional Amounts...................................................................       30

ARTICLE V. SUCCESSOR CORPORATION.................................................................................       30

         Section 5.1        When Company May Merge or Transfer Assets............................................       30

ARTICLE VI. DEFAULTS AND REMEDIES................................................................................       31

         Section 6.1        Events of Default....................................................................       31
         Section 6.2        Acceleration.........................................................................       33
         Section 6.3        Other Remedies.......................................................................       33
         Section 6.4        Waiver of Past Defaults..............................................................       34
         Section 6.5        Control by Majority..................................................................       34
         Section 6.6        Limitation on Suits..................................................................       34
         Section 6.7        Rights of Holders to Receive Payment.................................................       34
         Section 6.8        Collection Suit by Trustee...........................................................       35
         Section 6.9        Trustee May File Proofs of Claim.....................................................       35
         Section 6.10       Priorities...........................................................................       35
         Section 6.11       Undertaking for Costs................................................................       36
         Section 6.12       Waiver of Stay, Extension or Usury Laws..............................................       36

ARTICLE VII. TRUSTEE.............................................................................................       36

         Section 7.1        Duties of Trustee....................................................................       36
         Section 7.2        Rights of Trustee....................................................................       37
         Section 7.3        Individual Rights of Trustee.........................................................       39
         Section 7.4        Trustee's Disclaimer.................................................................       39
         Section 7.5        Notice of Defaults...................................................................       39
         Section 7.6        Reports by Trustee to Holders........................................................       39
         Section 7.7        Compensation and Indemnity...........................................................       40
         Section 7.8        Replacement of Trustee...............................................................       40
         Section 7.9        Successor Trustee by Merger..........................................................       41
         Section 7.10       Eligibility; Disqualification........................................................       41
         Section 7.11       Preferential Collection of Claims Against Company....................................       41
         Section 7.12       Force Majeure........................................................................       41

ARTICLE VIII. AMENDMENTS.........................................................................................       42

         Section 8.1        Without Consent of Holders...........................................................       42

</TABLE>

<PAGE>

<TABLE>
<S>                                                                                                                     <C>
         Section 8.2        With Consent of Holders..............................................................       42
         Section 8.3        Compliance with Trust Indenture Act..................................................       43
         Section 8.4        Revocation and Effect of Consents, Waivers and Actions...............................       44
         Section 8.5        Notation on or Exchange of Securities................................................       44
         Section 8.6        Trustee to Sign Supplemental Indentures..............................................       44
         Section 8.7        Effect of Supplemental Indentures....................................................       44

ARTICLE IX. CONVERSIONS..........................................................................................       44

         Section 9.1        Conversion Privilege.................................................................       44
         Section 9.2        Conversion Procedure; Conversion Price; Fractional Shares............................       46
         Section 9.3        Adjustment of Conversion Price.......................................................       47
         Section 9.4        Consolidation or Merger of the Company...............................................       56
         Section 9.5        Notice of Adjustment.................................................................       57
         Section 9.6        Notice in Certain Events.............................................................       58
         Section 9.7        Company To Reserve Stock:  Registration; Listing.....................................       58
         Section 9.8        Taxes on Conversion..................................................................       59
         Section 9.9        Conversion After Record Date.........................................................       59
         Section 9.10       Company Determination Final..........................................................       60
         Section 9.11       Responsibility of Trustee for Conversion Provisions..................................       60
         Section 9.12       Conversion After a Public Acquirer Change of Control.................................       60

ARTICLE X. SATISFACTION AND DISCHARGE OF INDENTURE...............................................................       61

         Section 10.1       Satisfaction and Discharge of Indenture..............................................       61
         Section 10.2       Application of Trust Money...........................................................       62
         Section 10.3       Repayment to Company.................................................................       62
         Section 10.4       Reinstatement........................................................................       62

ARTICLE XI. MISCELLANEOUS........................................................................................       62

         Section 11.1       Trust Indenture Act Controls.........................................................       62
         Section 11.2       Notices..............................................................................       62
         Section 11.3       Communication by Holders with Other Holders..........................................       63
         Section 11.4       Certificate and Opinion as to Conditions Precedent...................................       64
         Section 11.5       Statements Required in Certificate or Opinion........................................       64
         Section 11.6       Separability Clause..................................................................       64
         Section 11.7       Rules by Trustee, Paying Agent, Conversion Agent and Registrar.......................       64
         Section 11.8       Legal Holidays.......................................................................       64
         Section 11.9       Governing Law........................................................................       65
         Section 11.10      Waiver of Jury Trial.................................................................       65
         Section 11.11      No Recourse Against Others...........................................................       65
         Section 11.12      Successors...........................................................................       65
         Section 11.13      Multiple Originals...................................................................       65
         Section 11.14      Effect of Headings and Table of Contents.............................................       65

</TABLE>

<PAGE>

<TABLE>
<S>               <C>
EXHIBIT A         Form of Global Security
EXHIBIT B         Form of Certificated Security
EXHIBIT C         Transfer Certificate
</TABLE>

                                       iv
<PAGE>

      INDENTURE dated as of October 20, 2004 between Cell Genesys, Inc., a
Delaware corporation ("Company"), and U.S. BANK NATIONAL ASSOCIATION
("Trustee").

      Each party agrees as follows for the benefit of the other party and for
the equal and ratable benefit of the Holders of the Company's 3.125% Convertible
Senior Notes due 2011:

                                   ARTICLE I.
                   DEFINITIONS AND INCORPORATION BY REFERENCE

      Section 1.1 Definitions.

      "144A Global Security" means a permanent Global Security in the form of
the Security attached hereto as Exhibit A, and that is deposited with and
registered in the name of the Depositary, representing Securities sold in
reliance on Rule 144A under the Securities Act.

      "Additional Amounts" shall have the meaning ascribed to it in the
Registration Rights Agreement.

      "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 or cause the direction of 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.

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

      "Board of Directors" means either the board of directors of the Company or
any duly authorized committee of such board.

      "Board Resolution" means a resolution of the Board of Directors.

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

      "Capital Stock" for any corporation means any and all shares, interests,
rights to purchase, warrants, options, participations or other equivalents of or
interests in (however designated) equity issued by that corporation, but
excluding any debt securities convertible into such equity.

      "Certificated Securities" means Securities that are in the form of the
Securities attached hereto as Exhibit B.

                                        1
<PAGE>

      "Common Stock" shall mean the Common Stock, $0.001 par value per share, of
the Company existing on the date of this Indenture or any other shares of
Capital Stock of the Company into which such Common Stock shall be reclassified
or changed.

      "Company" means the party named as the "Company" in the first paragraph of
this Indenture until a successor replaces it pursuant to the applicable
provisions of this Indenture and, thereafter, shall mean such successor. The
foregoing sentence shall likewise apply to any subsequent such successor or
successors.

      "Company Request" or "Company Order" means a written request or order
signed in the name of the Company by any two Officers.

      "Conversion Price" means initially $9.10, subject to adjustment as set
forth herein.

      "Corporate Trust Office" means the principal office of the Trustee at
which at any time its corporate trust business shall be administered, which
office at the date hereof is located at 633 West Fifth Street, 24th Floor,
LM-CA-T24T, Los Angeles, CA 90071, Attention: Corporate Trust Services, or such
other address as the Trustee may designate from time to time by notice to the
Holders and the Company, or the principal corporate trust office of any
successor (or such other address as a successor Trustee may designate from time
to time by notice to the Holders and the Company).

      "Default" means an event which, with the giving of notice or the lapse of
time, or both, would become an Event of Default.

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

      "Exchange Act" mans the Securities Exchange Act of 1934, as amended.

      "Global Securities" means Securities that are in the form of the
Securities attached hereto as Exhibit A, and that are registered in the register
of Securities in the name of a Depositary or a nominee thereof, and to the
extent that such Securities are required to bear the Legend required by Section
2.6 hereof, such Securities will be in the form of a 144A Global Security.

      "Holder" or "Securityholder" means a Person in whose name a Security is
registered on the Registrar's books.

      "Indenture" means this Indenture, as amended or supplemented from time to
time in accordance with the terms hereof, including the provisions of the TIA
that are deemed to be a part hereof.

      "Initial Purchasers" means Lehman Brothers Inc., J.P. Morgan Securities
Inc., Needham & Company, Inc. and SG Cowen & Co.

                                        2
<PAGE>

      "Issue Date" of any Security means the date on which the Security was
originally issued or deemed issued as set forth on the face of the Security.

      "Majority Owned" means having "beneficial ownership" (as defined in Rule
13(d)(3) under the Exchange Act) of more than 50% of the total voting power of
all shares of the respective entity's Capital Stock that are entitled to vote
generally in the election of directors. "Majority Owner" has the correlative
meaning.

      "Officer" means the Chairman of the Board, the Vice Chairman, the Chief
Executive Officer, the President, any Vice President, the Treasurer, the
Controller, or the Secretary or any Assistant Treasurer or Assistant Secretary
of the Company.

      "Officers' Certificate" means a written certificate containing the
information specified in Sections 11.4 and 11.5, signed in the name of the
Company by any two Officers, and delivered to the Trustee. An Officers'
Certificate given pursuant to Section 4.3 shall be signed by the principal
executive officer, principal financial officer or principal accounting officer
of the Company but need not contain the information specified in Sections 11.4
and 11.5.

      "Opinion of Counsel" means a written opinion containing the information
specified in Sections 11.4 and 11.5, from legal counsel who is reasonably
acceptable to the Trustee. The counsel may be an employee of, or counsel to, the
Company.

      "Person" means any individual, corporation, limited liability company,
partnership, joint venture, association, joint-stock company, trust,
unincorporated organization, or government or any agency or political
subdivision thereof. The term "Person" includes any syndicate or group which
would be deemed to be a "person" under Section 13(d)(3) under the Exchange Act.

      "Public Acquirer Change of Control" means any event constituting a
Non-Stock Change of Control in which the acquirer has a class of common stock
traded on any U.S. national securities exchange or quoted on the Nasdaq National
Market or which will be so traded or quoted when issued or exchanged in
connection with such Fundamental Change (the "Public Acquirer Common Stock"). If
an acquirer does not itself have a class of common stock satisfying the
foregoing requirement, it will be deemed to have Public Acquirer Common Stock if
a corporation that directly or indirectly is the Majority Owner of the acquirer
has a class of common stock satisfying the foregoing requirement; in such case,
all references to Public Acquirer Common Stock shall refer to such class of
common stock.

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

      "Purchase Agreement" means the Purchase Agreement, dated October 14, 2004,
among the Company and J.P. Morgan Securities Inc. and Lehman Brothers Inc. as
representatives of the Initial Purchasers.

      "Redemption Date" or "redemption date" shall mean the date specified in a
notice of redemption on which the Securities may be redeemed in accordance with
the terms of the Securities and this Indenture.

                                        3
<PAGE>

      "Redemption Price" or "redemption price" shall have the meaning set forth
in Section 5 of the Securities.

      "Registration Rights Agreement" means the Resale Registration Rights
Agreement, dated as of the date hereof, among the Company, J.P. Morgan
Securities Inc. and Lehman Brothers Inc. as representatives of the Initial
Purchasers.

      "Responsible Officer" shall mean, when used with respect to the Trustee,
any officer within the Corporate Trust Office of the Trustee or any other
officer of the Trustee to whom any corporate trust matter is referred because of
such person's knowledge of and familiarity with the particular subject and who
shall have direct responsibility for the administration of this Indenture.

      "Restricted Security" means a Security required to bear the restrictive
legend set forth in the form of Security set forth in Exhibits A and B of this
Indenture.

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

      "Sale Price" of a security on any date of determination means:

            (i) the closing sales price as reported by the Nasdaq Stock Market,
      Inc.;

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

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

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

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

      "SEC" means the Securities and Exchange Commission.

      "Securities" means any of the Company's 3.125% Convertible Senior Notes
due 2011, as amended or supplemented from time to time, issued under this
Indenture.

      "Securityholder" or "Holder" means a Person in whose name a Security is
registered on the Registrar's books.

                                        4
<PAGE>

      "Significant Subsidiary" shall have the meaning ascribed to such term in
Rule 405 of the Securities Act.

      "Stated Maturity", when used with respect to any Security, means November
1, 2011.

      "Subsidiary" means any Person of which at least a majority of the
outstanding Voting Stock shall at the time directly or indirectly be owned or
controlled by the Company or by one or more Subsidiaries or by the Company and
one or more Subsidiaries.

      "TIA" means the Trust Indenture Act of 1939 as in effect on the date of
this Indenture, provided, however, that in the event the TIA is amended after
such date, TIA means, to the extent required by any such amendment, the TIA as
so amended.

      "Trading Day" means a day during which trading in securities generally
occurs on the Nasdaq Stock Market, Inc. or, if the Common Stock is not quoted on
The Nasdaq Stock Market, Inc., on the principal other national or regional
securities exchange on which the Common Stock then is listed or, if the Common
Stock is not traded on The Nasdaq Stock Market, Inc. or listed on a national or
regional securities exchange, on the principal other market on which the Common
Stock is then traded or quoted.

      "Trustee" means the party named as the "Trustee" in the first paragraph of
this Indenture until a successor replaces it pursuant to the applicable
provisions of this Indenture and, thereafter, shall mean such successor. The
foregoing sentence shall likewise apply to any subsequent such successor or
successors.

      "Vice President," when used with respect to the Company, means any vice
president, whether or not designated by a number or a word or words added before
or after the title "vice president."

      "Voting Stock" of a Person means Capital Stock of such Person of the class
or classes pursuant to which the holders thereof have the general voting power
under ordinary circumstances to elect at least a majority of the board of
directors, managers or trustees of such Person (irrespective of whether or not
at the time Capital Stock of any other class or classes shall have or might have
voting power by reason of the happening of any contingency).

      Section 1.2 Other Definitions.

<TABLE>
<CAPTION>
                                                                                                      SECTION IN
                                                                                                    WHICH THE TERM
TERM:                                                                                                IS DEFINED:
-----                                                                                               --------------
<S>                                                                                                 <C>
"110% Trading Price Exception"................................................................          3.7
"Act".........................................................................................          1.5
"Additional Common Stock".....................................................................          9.1(b)
"Agent Members"...............................................................................          2.12(e)
"beneficial owner"............................................................................          3.7(a)
"Common Stock Restrictive Legend".............................................................          2.6(f)
"Continuing Director".........................................................................          3.7(a)
</TABLE>

                                        5
<PAGE>

<TABLE>
<CAPTION>
                                                                                                      SECTION IN
                                                                                                    WHICH THE TERM
TERM:                                                                                                IS DEFINED:
-----                                                                                               --------------
<S>                                                                                                 <C>
"Conversion Agent"............................................................................          2.3
"Current Market Price"........................................................................          9.3(g)
"Depositary"..................................................................................          2.1(a)
"distributed assets"..........................................................................          9.3(d)
"DTC".........................................................................................          2.1(a)
"Effective Date"..............................................................................          9.1(b)
"Event of Default"............................................................................          6.1
"Exchange Act"................................................................................          2.12(e)
"Expiration Time".............................................................................          9.3(f)
"Fair Market Value"...........................................................................          9.3(g)
"Fundamental Change"                                                                                    3.7(a)
"Fundamental Change Purchase Date"............................................................          3.7(a)
"Fundamental Change Purchase Notice"..........................................................          3.7(c)
"Fundamental Change Purchase Price"...........................................................          3.7(a)
"issuer tender offer".........................................................................          3.11
"Legal Holiday"...............................................................................          11.8
"Legend"......................................................................................          2.6(f)
"Non-Electing Share"..........................................................................          9.4
"Non-Stock Change of Control".................................................................          9.1(b)
"Notice of Default"...........................................................................          6.1
"Paying Agent"................................................................................          2.3
"QIB".........................................................................................          2.1(a)
"Record Date".................................................................................          9.3(g)
"Redemption Notice"...........................................................................          3.3
"Reference Period"............................................................................          9.3(d)
"Registrar"...................................................................................          2.3
"Rule 144A Information".......................................................................          4.6
"Securities Act"..............................................................................          2.6(f)
"Spin-Off"....................................................................................          9.3(d)
"Spin-Off Valuation Period"...................................................................          9.3(d)
"Stock Price".................................................................................          9.1(b)
"transfer"....................................................................................          2.12(d)
"Trigger Event"...............................................................................          9.3(d)
</TABLE>

      Section 1.3 Incorporation by Reference of Trust Indenture Act. Whenever
this Indenture refers to a provision of the TIA, the provision is incorporated
by reference in and made a part of this Indenture. The following TIA terms used
in this Indenture have the following meanings:

      "indenture securities" means the Securities.

      "indenture security holder" means a Securityholder.

      "indenture to be qualified" means this Indenture.

                                        6
<PAGE>

      "indenture trustee" or "institutional trustee" means the Trustee.

      "obligor" on the indenture securities means the Company.

      All other TIA terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by SEC rule have the
meanings assigned to them by such definitions.

      Section 1.4 Rules of Construction. Unless the context otherwise requires:

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

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

                  (3) "or" is not exclusive;

                  (4) "including" means including, without limitation; and

                  (5) words in the singular include the plural, and words in the
plural include the singular.

      Section 1.5 Acts of Holders.

            (a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by an agent duly
appointed in writing; and, except as herein otherwise expressly provided, such
action shall become effective when such instrument or instruments are delivered
to the Trustee and, where it is hereby expressly required, to the Company, as
described in Section 11.2. Such instrument or instruments (and the action
embodied therein and evidenced thereby) are herein sometimes referred to as the
"Act" of Holders signing such instrument or instruments. Proof of execution of
any such instrument or of a writing appointing any such agent shall be
sufficient for any purpose of this Indenture and conclusive in favor of the
Trustee and the Company, if made in the manner provided in this Section.

            (b) 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 that the individual signing
such instrument or writing acknowledged to such officer the execution thereof.
Where such execution is by a signer acting in a capacity other than such
signer's individual capacity, such certificate or affidavit shall also
constitute sufficient proof of such signer's authority. The fact and date of the
execution of any such instrument or writing, or the authority of the Person
executing the same, may also be proved in any other manner that the Trustee
deems sufficient.

                                        7
<PAGE>

            (c) The principal amount and serial number of any Security and the
ownership of Securities shall be proved by the register for the Securities.

            (d) Any request, demand, authorization, direction, notice, consent,
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.

            (e) If the Company shall solicit from the Holders any request,
demand, authorization, direction, notice, consent, waiver or other Act, the
Company may, at its option, by or pursuant to a Board Resolution, fix in advance
a record date for the determination of Holders entitled to give such request,
demand, authorization, direction, notice, consent, waiver or other Act, but the
Company shall have no obligation to do so. If such a record date is fixed, such
request, demand, authorization, direction, notice, consent, waiver or other Act
may be given before or after such record date, but only the Holders of record at
the close of business on such record date shall be deemed to be Holders for the
purposes of determining whether Holders of the requisite proportion of
outstanding Securities have authorized or agreed or consented to such request,
demand, authorization, direction, notice, consent, waiver or other Act, and for
that purpose the outstanding Securities shall be computed as of such record
date; provided that no such authorization, agreement or consent by the Holders
on such record date shall be deemed effective unless it shall become effective
pursuant to the provisions of this Indenture not later than six months after the
record date.

                                  ARTICLE II.
                                 THE SECURITIES

      Section 2.1 Form and Dating. The Securities and the Trustee's certificate
of authentication shall be substantially in the form of Exhibits A and B, which
are a part of this Indenture. The Securities may have notations, legends or
endorsements required by law, stock exchange rule or usage (provided that any
such notation, legend or endorsement required by usage is in a form acceptable
to the Company). The Company shall provide any such notations, legends or
endorsements to the Trustee in writing. Each Security shall be dated the date of
its authentication.

            (a) 144A Global Securities. Securities offered and sold within the
United States to qualified institutional buyers as defined in Rule 144A ("QIBs")
in reliance on Rule 144A shall be issued initially in the form of a 144A Global
Security, which shall be deposited with the Trustee at its Corporate Trust
Office, as custodian for the Depositary (as defined below) and registered in the
name of The Depository Trust Company ("DTC") or the nominee thereof (DTC, or any
successor thereto, and any such nominee being hereinafter referred to as the
"Depositary"), duly executed by the Company and authenticated by the Trustee as
hereinafter provided. The aggregate principal amount of the 144A Global
Securities may from time to time be increased or decreased by adjustments made
on the records of the Trustee and the Depositary as hereinafter provided.

                                        8
<PAGE>

            (b) Global Securities in General. Each Global Security shall
represent such of the outstanding Securities as shall be specified therein and
each shall provide that it shall represent the aggregate amount of outstanding
Securities from time to time endorsed thereon and that the aggregate amount of
outstanding Securities represented thereby may from time to time be reduced or
increased, as appropriate, to reflect exchanges, redemptions, repurchases and
conversions.

      Any adjustment of the aggregate principal amount of a Global Security to
reflect the amount of any increase or decrease in the amount of outstanding
Securities represented thereby shall be made by the Trustee in accordance with
instructions given by the Holder thereof as required by Section 2.12 hereof and
shall be made on the records of the Trustee and the Depositary.

            (c) Book-Entry Provisions. This Section 2.1(c) shall apply only to
Global Securities deposited with or on behalf of the Depositary.

      The Company shall execute and the Trustee shall, in accordance with this
Section 2.1(c), authenticate and deliver initially one or more Global Securities
that (a) shall be registered in the name of the Depositary, (b) shall be
delivered by the Trustee to the Depositary or pursuant to the Depositary's
instructions and (c) shall be substantially in the form of Exhibit A attached
hereto; provided that the Legend (other than the first and second paragraphs
thereof) may be removed from such Global Security on satisfaction of the
conditions specified in this Indenture.

      (d) Certificated Securities. Securities not issued as interests in the
Global Securities will be issued in certificated form substantially in the form
of Exhibit B attached hereto; provided that the Legend may be removed from such
Securities on satisfaction of the conditions specified in this Indenture.

      Section 2.2 Execution and Authentication. The Securities shall be executed
on behalf of the Company by any Officer. The signature of the Officer on the
Securities may be manual or facsimile.

      Securities bearing the manual or facsimile signatures of individuals who
were, at the time of the execution of the Securities, Officers 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 authentication of such Securities.

      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 duly
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.

      The Trustee shall authenticate and deliver the Securities for original
issue in an aggregate principal amount of $110,000,000 (or such greater amount
necessary to reflect the exercise by the Initial Purchasers of their option to
purchase additional Securities in compliance with the Purchase Agreement, but
not in excess of $145,000,000) upon one or more Company Orders

                                        9
<PAGE>

without any further action by the Company (other than as contemplated in Section
10.4 and Section 10.5 hereof). The aggregate principal amount of the Securities
due at the Stated Maturity thereof outstanding at any time may not exceed the
amount set forth in the foregoing sentence.

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

      Section 2.3 Registrar, Paying Agent and Conversion Agent. The Company
shall maintain an office or agency where Securities may be presented for
registration of transfer or for exchange ("Registrar"), an office or agency
where Securities may be presented for purchase or payment ("Paying Agent") and
an office or agency where Securities may be presented for conversion
("Conversion Agent"). The Registrar shall keep a register of the Securities and
of their transfer and exchange. The Company may have one or more co-registrars,
one or more additional paying agents and one or more additional conversion
agents. The term Paying Agent includes any additional paying agent, including
any named pursuant to Section 4.5. The term Conversion Agent includes any
additional conversion agent, including any named pursuant to Section 4.5.

      The Company shall enter into an appropriate agency agreement with any
Registrar, Paying Agent, Conversion Agent or co-registrar (in each case, if such
Registrar, agent or co-registrar is a Person other than the Trustee). The
agreement shall implement the provisions of this Indenture that relate to such
agent. The Company shall notify the Trustee of the name and address of any such
agent. If the Company fails to maintain a Registrar, Paying Agent or Conversion
Agent, the Trustee shall act as such and shall be entitled to appropriate
compensation therefor pursuant to Section 7.7. The Company or any Subsidiary or
an Affiliate of either of them may act as Paying Agent, Registrar, Conversion
Agent or co-registrar.

      The Company initially appoints the Trustee as Registrar, Paying Agent and
Conversion Agent in connection with the Securities.

      Section 2.4 Paying Agent to Hold Money and Securities in Trust. Except as
otherwise provided herein, on or prior to 10:00 a.m., New York City time, on
each due date of payments in respect of any Security, the Company shall deposit
with the Paying Agent a sum of money (in immediately available funds if
deposited on the due date) sufficient to make such payments when so becoming
due. The Company shall require each Paying Agent (other than the Trustee) to
agree in writing that the Paying Agent shall hold in trust for the benefit of
Securityholders or the Trustee all money held by the Paying Agent for the making
of payments in respect of the Securities and shall notify the Trustee of any
default by the Company in making any such payment. At any time during the
continuance of any such default, the Paying Agent shall, upon the written
request of the Trustee, forthwith pay to the Trustee all money so held in trust.
If the Company, a Subsidiary or an Affiliate of either of them acts as Paying
Agent, it shall segregate the money held by it as Paying Agent and hold it as a
separate trust fund. The Company at any time may require a Paying Agent to pay
all money held by it to the Trustee and to account for any funds and Common
Stock disbursed by it. Upon doing so, the Paying Agent shall have no further
liability for the money.

                                       10
<PAGE>

      Section 2.5 Securityholder Lists. The Trustee shall preserve in as current
a form as is reasonably practicable the most recent list available to it of the
names and addresses of Securityholders. If the Trustee is not the Registrar, the
Company shall cause to be furnished to the Trustee at least semiannually on
April 1 and October 1 a listing of Securityholders dated within 15 days of the
date on which the list is furnished and at such other times as the Trustee may
request in writing a list in such form and as of such date as the Trustee may
reasonably require of the names and addresses of Securityholders.

      Section 2.6 Transfer and Exchange.

            (a) Subject to Section 2.12, upon surrender for registration of
transfer of any Security, together with a written instrument of transfer
satisfactory to the Registrar duly executed by the Securityholder or such
Securityholder's attorney duly authorized in writing, at the office or agency of
the Company designated as Registrar or co-registrar pursuant to Section 2.3, 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 denomination or denominations, of a like aggregate principal
amount. The Company shall not charge a service charge for any registration of
transfer or exchange, but the Company may require payment of a sum sufficient to
pay all taxes, assessments or other governmental charges that may be imposed in
connection with the transfer or exchange of the Securities from the
Securityholder requesting such transfer or exchange.

      At the option of the Holder, Securities may be exchanged for other
Securities of any authorized denomination or denominations, of a like aggregate
principal amount upon surrender of the Securities to be exchanged, together with
a written instrument of transfer satisfactory to the Registrar duly executed by
the Securityholder or such Securityholder's attorney duly authorized in writing,
at such office or agency. Whenever any Securities are so surrendered for
exchange, the Company shall execute, and the Trustee shall authenticate and
deliver, the Securities which the Holder making the exchange is entitled to
receive.

      The Company shall not be required to make, and the Registrar need not
register, transfers or exchanges of Securities selected for redemption in whole
or in part (except, in the case of Securities to be redeemed in part, the
portion thereof not to be redeemed) or any Securities in respect of which a
Fundamental Change Purchase Notice has been given and not withdrawn by the
Holder thereof in accordance with the terms of this Indenture (except, in the
case of Securities to be purchased in part, the portion thereof not to be
purchased) or to issue any Securities, register the transfer of, or exchange any
Securities for a period of 15 days before the Redemption Date.

            (b) Notwithstanding any provision to the contrary herein, so long as
a Global Security remains outstanding and is held by or on behalf of the
Depositary, (i) transfers of beneficial interests in a Global Security, in whole
or in part, may be effected only through a book entry system maintained by the
Holder of such Global Security (or its agent) in accordance with Applicable
Procedures, (ii) ownership of a beneficial interest in the Security shall be
required to be reflected in book entry and (iii) transfers of Global Securities
or beneficial interests in Global Securities shall be made only in accordance
with Section 2.12 and this Section 2.6(b). Transfers of a Global Security shall
be limited to transfers of such Global Security in whole or in part, to

                                       11
<PAGE>

the Depositary, to nominees of the Depositary or to a successor of the
Depositary or such successor's nominee.

            (c) Successive registrations and registrations of transfers and
exchanges as aforesaid may be made from time to time as desired, and each such
registration shall be noted on the register for the Securities.

            (d) Any Registrar appointed pursuant to Section 2.3 shall provide to
the Trustee such information as the Trustee may reasonably require in connection
with the delivery by such Registrar of Securities upon transfer or exchange of
Securities.

            (e) No Registrar shall be required to make registrations of transfer
or exchange of Securities during any periods designated in the text of the
Securities or in this Indenture as periods during which such registration of
transfers and exchanges need not be made.

            (f) If Securities are issued upon the transfer, exchange or
replacement of Securities subject to restrictions on transfer and bearing the
legends set forth on the forms of Security attached hereto as Exhibits A and B
setting forth such restrictions (collectively, the "Legend"), or if a request is
made to remove the Legend on a Security, the Securities so issued shall bear the
Legend, or the Legend shall not be removed, as the case may be, unless there is
delivered to the Company and the Registrar such satisfactory evidence, which
shall include an opinion of counsel, as may be reasonably required by the
Company and the Registrar and the Trustee (if not the same Person as the
Trustee), that neither the Legend nor the restrictions on transfer set forth
therein are required to ensure that transfers thereof comply with the provisions
of Rule 144A or Rule 144 under the Securities Act of 1933, as amended
("Securities Act") or that such Securities are not "restricted" within the
meaning of Rule 144 under the Securities Act. Upon (i) provision of such
satisfactory evidence, or (ii) notification by the Company to the Trustee and
Registrar of the sale of such Security pursuant to a registration statement that
is effective at the time of such sale, the Trustee, at the written direction of
the Company, shall authenticate and deliver a Security that does not bear the
Legend. If the Legend is removed from the face of a Security and the Security is
subsequently held by the Company or an Affiliate of the Company, the Legend
shall be reinstated.

      In the event Rule 144(k) as promulgated under the Securities Act is
amended to shorten the two-year period under Rule 144(k), then, the references
in the Legend to "TWO YEARS", and in the corresponding transfer restrictions
described above, will be deemed to refer to such shorter period, from and after
receipt by the Trustee of an Officers' Certificate and an Opinion of Counsel to
that effect. As soon as practicable after the Company knows of the effectiveness
of any such amendment to shorten the two-year period under Rule 144(k), unless
such changes would otherwise be prohibited by, or would cause a violation of,
the federal securities laws applicable at the time, the Company will provide to
the Trustee an Officers' Certificate and an Opinion of Counsel as to the
effectiveness of such amendment and the effectiveness of such change to the
restrictive legends and transfer restrictions.

      Until the Legend on any Restricted Security has been removed in compliance
with this Section 2.6(f), all shares of Common Stock (or other securities
issuable upon conversion as a result of the provisions of this Indenture) issued
upon conversion of such Restricted Security

                                       12
<PAGE>

shall bear a legend substantially in the form of the Legend (the "Common Stock
Restrictive Legend") and shall be subject to the same restrictions on transfer
as such Restricted Security. At any time following the time when the
restrictions on transfer set forth in the Common Stock Restrictive Legend shall
have expired in accordance with their terms or shall have terminated under
applicable law, the holder of such Common Stock may, upon a surrender of the
certificate representing such Common Stock exchange to the Company's transfer
agent in accordance with such agent's customary procedures (accompanied, in the
event that such restrictions on transfer have terminated by reason of a transfer
in compliance with Rule 144 or any successor provision, by an opinion of counsel
having substantial experience in practice under the Securities Act and otherwise
reasonably acceptable to the Company, addressed to the Company and in form
acceptable to the Company, to the effect that the transfer of such Common Stock
has been made in compliance with Rule 144 or such successor provision), may
receive a new certificate representing such Common Stock, in like amount, which
shall not bear the Common Stock Restrictive Legend.

      Section 2.7 Replacement Securities. If (a) any mutilated Security is
surrendered to the Trustee, or (b) the Company and the Trustee receive evidence
to their satisfaction of the destruction, loss or theft of any Security, and
there is delivered to the Company and the Trustee such security or indemnity as
may be required by them to save each of them harmless, then, in the absence of
notice to the Company or the Trustee that such Security has been acquired by a
bona fide purchaser, the Company shall execute and upon its written request the
Trustee shall authenticate and deliver, in exchange for any such mutilated
Security or in lieu of any such destroyed, lost or stolen Security, a new
Security of like tenor and principal amount, bearing a certificate number not
contemporaneously outstanding.

      In case any such mutilated, destroyed, lost or stolen Security has become
or is about to become due and payable, or is about to be purchased by the
Company pursuant to Article III hereof, the Company in its discretion may,
instead of issuing a new Security, pay or purchase such Security, as the case
may be.

      Upon the issuance of any new Securities under this Section 2.7, the
Company may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee) connected therewith.

      Every new Security issued pursuant to this Section 2.7 in lieu of any
mutilated, destroyed, lost or stolen Security shall constitute an original
additional contractual obligation of the Company, whether or not the destroyed,
lost or stolen Security shall be at any time enforceable by anyone, and shall be
entitled to all benefits of this Indenture equally and proportionately with any
and all other Securities duly issued hereunder.

      The provisions of this Section 2.7 are exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Securities.

      Section 2.8 Outstanding Securities; Determinations of Holders' Action.
Securities outstanding at any time are all the Securities authenticated by the
Trustee except for those

                                       13
<PAGE>

cancelled by it, those paid pursuant to Section 2.7, those delivered to it for
cancellation or surrendered for transfer or exchange and those described in this
Section 2.8 as not outstanding. A Security does not cease to be outstanding
because the Company or an Affiliate thereof holds the Security; provided,
however, that in determining whether the Holders of the requisite principal
amount of Securities have given or concurred in any request, demand,
authorization, direction, notice, consent, waiver, or other Act 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 request, demand, authorization, direction,
notice, consent, waiver or other Act, only Securities which a Responsible
Officer of the Trustee actually knows to be so owned shall be so disregarded.
Subject to the foregoing, only Securities outstanding at the time of such
determination shall be considered in any such determination (including, without
limitation, determinations pursuant to Articles VI and VIII hereof).

      If a Security is replaced pursuant to Section 2.7, it ceases to be
outstanding unless the Trustee receives proof satisfactory to it that the
replaced Security is held by a bona fide purchaser.

      If the Paying Agent holds, in accordance with this Indenture, on a
Redemption Date, or on the Business Day following a Fundamental Change Purchase
Date, or on Stated Maturity, money sufficient to pay Securities payable on that
date, then immediately after such Redemption Date, Fundamental Change Purchase
Date or Stated Maturity, as the case may be, such Securities shall cease to be
outstanding and interest, including Additional Amounts, if any, on such
Securities shall cease to accrue; provided, that if such Securities are to be
redeemed, notice of such redemption has been duly given pursuant to this
Indenture or provision therefor satisfactory to the Trustee has been made.

      If a Security is converted in accordance with Article IX, then from and
after the time of conversion on the date of conversion, such Security shall
cease to be outstanding and interest, including Additional Amounts, if any,
shall cease to accrue on such Security.

      Section 2.9 Temporary Securities. Pending the preparation of definitive
Securities, the Company may execute, and upon Company Order the Trustee shall
authenticate and deliver, temporary Securities which are printed, lithographed,
typewritten, mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Securities in lieu of which they
are issued and with such appropriate insertions, omissions, substitutions and
other variations as the officers executing such Securities may determine, as
conclusively evidenced by their execution of such Securities.

      If temporary Securities are issued, the Company will cause definitive
Securities to be prepared without unreasonable delay. After the preparation of
definitive Securities, the temporary Securities shall be exchangeable for
definitive Securities upon surrender of the temporary Securities at the office
or agency of the Company designated for such purpose pursuant to Section 2.3,
without charge to the Holder. Upon surrender for cancellation of any one or more
temporary Securities, the Company shall execute and the Trustee shall
authenticate and deliver in exchange therefor a like principal amount of
definitive Securities of authorized

                                       14
<PAGE>

denominations. Until so exchanged the temporary Securities shall in all respects
be entitled to the same benefits under this Indenture as definitive Securities.

      Section 2.10 Cancellation. If the Company shall acquire any of the
Securities, such acquisition shall not operate as a redemption or satisfaction
of the indebtedness represented by such Securities unless the same are delivered
to the Trustee for cancellation. All Securities surrendered for payment,
purchase by the Company pursuant to Article III, conversion, redemption or
registration of transfer or exchange shall, if surrendered to any Person other
than the Trustee, be delivered to the Trustee and shall be promptly cancelled by
it. The Company may at any time deliver to the Trustee for cancellation any
Securities previously authenticated and delivered hereunder which the Company
may have acquired in any manner whatsoever, and all Securities so delivered
shall be promptly cancelled by the Trustee. The Company may not issue new
Securities to replace Securities it has paid or delivered to the Trustee for
cancellation or that any Holder has converted pursuant to Article IX. No
Securities shall be authenticated in lieu of or in exchange for any Securities
cancelled as provided in this Section, except as expressly permitted by this
Indenture. All cancelled Securities held by the Trustee shall be disposed of by
the Trustee in accordance with the Trustee's customary procedure.

      Section 2.11 Persons Deemed Owners. Prior to due presentment 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 of such Security for the purpose of receiving payment of
principal of the Security or the payment of any Redemption Price or Fundamental
Change Purchase Price in respect thereof, and interest thereon, for the purpose
of conversion and for all other purposes whatsoever, whether or not such
Security be overdue, and neither the Company, the Trustee nor any agent of the
Company or the Trustee shall be affected by notice to the contrary.

      Section 2.12 Global Securities. (a) Notwithstanding any other provisions
of this Indenture or the Securities, (A) transfers of a Global Security, in
whole or in part, shall be made only in accordance with Section 2.6 and Section
2.12(a)(i), (B) transfers or exchanges of a beneficial interest in a Global
Security for an interest in the same or another Global Security shall comply
with Section 2.6 and Section 2.12(a)(ii) below, (C) transfers or exchanges of a
beneficial interest in a Global Security for a Certificated Security shall
comply with Section 2.6, Section 2.12(a)(iii) below and Section 2.12(e)(i)
below, and (D) transfers or exchanges of a Certificated Security shall comply
with Section 2.6 and Sections 2.12(a)(iv) and (a)(v) below.

                  (i) Transfer of Global Security. A Global Security may not be
transferred, in whole or in part, to any Person other than the Depositary or a
nominee or any successor thereof, and no such transfer to any such other Person
may be registered; provided that this clause (i) shall not prohibit any transfer
of a Certificated Security that is issued in exchange for a Global Security. No
transfer of a Global Security to any Person shall be effective under this
Indenture or the Securities unless and until such Security has been registered
in the name of such Person. Nothing in this Section 2.12(a)(i) shall prohibit or
render ineffective any transfer of a beneficial interest in a Global Security
effected in accordance with the other provisions of this Section 2.12.

                                       15
<PAGE>

                  (ii) Transfer or Exchange of a Beneficial Interest in a Global
Security for a Beneficial Interest in the Same or Another Global Security.

                  (x) A beneficial interest in a Global Security may not be
transferred or exchanged for a beneficial interest in another Global Security
except upon satisfaction of the requirements set forth below. Upon receipt by
the Trustee of a request to transfer or exchange of a beneficial interest in a
Global Security in accordance with Applicable Procedures for a beneficial
interest in another Global Security, together with:

                        (A) so long as the Securities are Restricted Securities,
certification in the form set forth in Exhibit C;

                        (B) written instructions to the Trustee to make, or
direct the Registrar to make, in the case of a transfer or exchange of a
beneficial interest in a Global Security for a beneficial interest in another
Global Security, an adjustment on its books and records with respect to such
Global Securities to reflect a decrease and increase in the aggregate principal
amount of the Securities represented by such Global Securities, such
instructions to contain information regarding the Depositary accounts to be
credited with such decrease and increase; and

                        (C) if the Company or the Trustee so requests, an
Opinion of Counsel or other evidence reasonably satisfactory to it as to the
compliance with the restrictions set forth in the Legend,

then the Trustee, (1) shall cause, or direct the Registrar to cause, in
accordance with the standing instructions and procedures existing between the
Depositary and the Registrar, the aggregate principal amount of the Securities
represented by the appropriate Global Security to be decreased by the aggregate
principal amount that the other Global Security is increased and (2) in
accordance with the standing instructions and procedures existing between the
Depositary and the Registrar and Applicable Procedures, shall debit and credit
or cause to be debited or credited, as appropriate, to the accounts of the
persons specified in such instructions a beneficial interest in the Global
Security or Global Securities, as appropriate, equal to the amount of the
beneficial interests so transferred or exchanged.

                  (y) Beneficial interests in a Global Security may be
transferred to Persons who take delivery in the same Global Security in
accordance with the Applicable Procedures and, if the Global Security is a
Restricted Security, in accordance with the transfer restrictions set forth in
the Legend. No written orders or instructions shall be required to be delivered
to the Registrar or the Trustee to effect the transactions described in this
Section 2.12(a)(ii)(y).

                  (z) Other than transfers to the Company or to an Affiliate of
the Company, beneficial interests in a Global Security that is not a Restricted
Security may not be transferred to Person who takes delivery thereof in the form
a beneficial interest in a Global Security that is a Restricted Security.

                  (iii) Transfer or Exchange of a Beneficial Interest in a
Global Security for a Certificated Security. A beneficial interest in a Global
Security may not be exchanged for a

                                       16
<PAGE>

Certificated Security except upon satisfaction of the requirements set forth
below and in Section 2.12(e)(1) below. Upon receipt by the Trustee of a transfer
of a beneficial interest in a Global Security in accordance with Applicable
Procedures for a Certificated Security in the form satisfactory to the Trustee,
together with:

                        (A) so long as the Securities are Restricted Securities,
certification in the form set forth in Exhibit C;

                        (B) written instructions to the Trustee to make, or
direct the Registrar to make, an adjustment on its books and records with
respect to such Global Security to reflect a decrease in the aggregate principal
amount of the Securities represented by the Global Security, such instructions
to contain information regarding the Depositary account to be credited with such
decrease; and

                        (C) if the Company or the Trustee so requests, an
Opinion of Counsel or other evidence reasonably satisfactory to it as to the
compliance with the restrictions set forth in the Legend,

then the Trustee shall cause, or direct the Registrar to cause, in accordance
with the standing instructions and procedures existing between the Depositary
and the Registrar, the aggregate principal amount of the Securities represented
by the Global Security to be decreased by the aggregate principal amount of the
Certificated Security to be issued, shall issue such Certificated Security and
shall debit or cause to be debited to the account of the person specified in
such instructions a beneficial interest in the Global Security equal to the
principal amount of the Certificated Security so issued.

                  (iv) Transfer and Exchange of Certificated Securities. When
Certificated Securities are presented to the Registrar with a request:

                  (y) to register the transfer of such Certificated Securities;
or

                  (z) to exchange such Certificated Securities for an equal
principal amount of Certificated Securities of other authorized denominations,

the Registrar shall register the transfer or make the exchange as requested if
its reasonable requirements for such transaction are met; provided, however,
that the Certificated Securities surrendered for transfer or exchange:

                  (1) shall be duly endorsed or accompanied by a written
instrument of transfer in form reasonably satisfactory to the Company and the
Registrar, duly executed by the Holder thereof or his attorney duly authorized
in writing; and

                  (2) so long as such Securities are Restricted Securities, such
Securities are being transferred or exchanged pursuant to an effective
registration statement under the Securities Act or pursuant to clause (A), (B)
or (C) below, and are accompanied by the following additional information and
documents, as applicable:

                                       17
<PAGE>

                        (A) if such Certificated Securities are being delivered
to the Registrar by a Holder for registration in the name of such Holder,
without transfer, a certification from such Holder to that effect; or

                        (B) if such Certificated Securities are being
transferred to the Company, a certification to that effect; or

                        (C) if such Certificated Securities are being
transferred pursuant to an exemption from registration, (i) a certification to
that effect (in the form set forth in Exhibit C, if applicable) and (ii) if the
Company so requests, an opinion of counsel or other evidence reasonably
satisfactory to it as to the compliance with the restrictions set forth in the
Legend.

                  (v) Transfer of a Certificated Security for a Beneficial
Interest in a Global Security. A Certificated Security may not be exchanged for
a beneficial interest in a Global Security except upon satisfaction of the
requirements set forth below.

      Upon receipt by the Trustee of a Certificated Security, duly endorsed or
accompanied by appropriate instruments of transfer, in form satisfactory to the
Trustee, together with:

                        (I) so long as the Securities are Restricted Securities,
certification, in the form set forth in Exhibit C, that such Certificated
Security is being transferred to a QIB in accordance with Rule 144A, or to an
institutional accredited investor within the meaning of Rule 501(a)(1), (2), (3)
or (7) of Regulation D of the Securities Act; and

                        (II) written instructions directing the Trustee to make,
or to direct the Registrar to make, an adjustment on its books and records with
respect to such Global Security to reflect an increase in the aggregate
principal amount of the Securities represented by the Global Security, such
instructions to contain information regarding the Depositary account to be
credited with such increase, then the Trustee shall cancel such Certificated
Security and cause, or direct the Registrar to cause, in accordance with the
standing instructions and procedures existing between the Depositary and the
Registrar, the aggregate principal amount of Securities represented by the
Global Security to be increased by the aggregate principal amount of the
Certificated Security to be exchanged, and shall credit or cause to be credited
to the account of the Person specified in such instructions a beneficial
interest in the Global Security equal to the principal amount of the
Certificated Security so cancelled. If no Global Securities are then
outstanding, the Company shall issue and the Trustee shall authenticate, upon
written order of the Company in the form of an Officers' Certificate, a new
Global Security in the appropriate principal amount.

            (b) Subject to the succeeding Section (c), every Security shall be
subject to the restrictions on transfer provided in the Legend and herein
including the delivery of an opinion of counsel, if so provided. Whenever any
Restricted Security is presented or surrendered for transfer or for exchange,
such Security must be accompanied by a certificate in substantially the form set
forth in Exhibit C, dated the date of such surrender and signed by the Holder of
such Security, as to compliance with such restrictions on transfer. The
Registrar shall not be required

                                       18
<PAGE>

to accept for such transfer or exchange any Security not so accompanied by a
properly completed certificate.

            (c) The restrictions imposed by the Legend upon the transferability
of any Security shall cease and terminate when such Security has been sold
pursuant to an effective registration statement under the Securities Act or
transferred in compliance with Rule 144 under the Securities Act (or any
successor provision thereto) or, if earlier, upon the expiration of the holding
period applicable to sales thereof under Rule 144(k) under the Securities Act
(or any successor provision). Any Security as to which such restrictions on
transfer shall have expired in accordance with their terms or shall have
terminated may, upon a surrender of such Security for exchange to the Registrar
in accordance with the provisions of this Section 2.12 (accompanied, in the
event that such restrictions on transfer have terminated by reason of a transfer
in compliance with Rule 144 or any successor provision, by an opinion of counsel
having substantial experience in practice under the Securities Act and otherwise
reasonably acceptable to the Company, addressed to the Company and in form
acceptable to the Company, to the effect that the transfer of such Security has
been made in compliance with Rule 144 or such successor provision), be exchanged
for a new Security, of like tenor and aggregate principal amount, which shall
not bear the restrictive Legend. The Company shall inform the Trustee of the
effective date of any registration statement registering the Securities under
the Securities Act. 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
opinion of counsel or registration statement.

            (d) As used in the preceding two paragraphs of this Section 2.12,
the term "transfer" encompasses any sale, pledge, transfer, loan, hypothecation,
or other disposition of any interest in any Security.

            (e) The provisions of clauses (1), (2), (3) and (4) below shall
apply only to Global Securities:

                  (1) Notwithstanding any other provisions of this Indenture or
the Securities, a Global Security shall not be exchanged in whole or in part for
a Security registered in the name of any Person other than the Depositary or one
or more nominees thereof, provided that a Global Security may be exchanged for
Securities registered in the names of any Person designated by the Depositary in
the event that (i) the Depositary has notified the Company that it is unwilling
or unable to continue as Depositary for such Global Security or such Depositary
has ceased to be a "clearing agency" registered under the Securities Exchange
Act of 1934, as amended (the "Exchange Act"), and a successor Depositary is not
appointed by the Company within 90 days or (ii) an Event of Default has occurred
and is continuing with respect to the Securities. Any Global Security exchanged
pursuant to clause (i) above shall be so exchanged in whole and not in part, and
any Global Security exchanged pursuant to clause (ii) above may be exchanged in
whole or from time to time in part as directed by the Depositary. Any Security
issued in exchange for a Global Security or any portion thereof shall be a
Global Security; provided that any such Security so issued that is registered in
the name of a Person other than the Depositary or a nominee thereof shall not be
a Global Security.

                  (2) Securities issued in exchange for a Global Security or any
portion thereof shall be issued in definitive, fully registered form, without
interest coupons, shall have an

                                       19
<PAGE>

aggregate principal amount equal to that of such Global Security or portion
thereof to be so exchanged, shall be registered in such names and be in such
authorized denominations as the Depositary shall designate and shall bear the
applicable legends provided for herein. Any Global Security to be exchanged in
whole shall be surrendered by the Depositary to the Trustee, as Registrar. With
regard to any Global Security to be exchanged in part, either such Global
Security shall be so surrendered for exchange or, if the Trustee is acting as
custodian for the Depositary or its nominee with respect to such Global
Security, the principal amount thereof shall be reduced, by an amount equal to
the portion thereof to be so exchanged, by means of an appropriate adjustment
made on the records of the Trustee. Upon any such surrender or adjustment, the
Trustee shall authenticate and deliver the Security issuable on such exchange to
or upon the order of the Depositary or an authorized representative thereof.

                  (3) Subject to the provisions of clause (5) below, the
registered Holder may grant proxies and otherwise authorize any Person,
including Agent Members (as defined below) and Persons that may hold interests
through Agent Members, to take any action which a holder is entitled to take
under this Indenture or the Securities.

                  (4) In the event of the occurrence of any of the events
specified in clause (1) above, the Company will promptly make available to the
Trustee a reasonable supply of Certificated Securities in definitive, fully
registered form, without interest coupons.

                  (5) Neither any members of, or participants in, the Depositary
(collectively, the "Agent Members") nor any other Persons on whose behalf Agent
Members may act shall have any rights under this Indenture with respect to any
Global Security registered in the name of the Depositary or any nominee thereof,
or under any such Global Security, and the Depositary or such nominee, as the
case may be, may be treated by the Company, the Trustee and any agent of the
Company or the Trustee as the absolute owner and holder of such Global Security
for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall
prevent the Company, the Trustee or any agent of the Company or the Trustee from
giving effect to any written certification, proxy or other authorization
furnished by the Depositary or such nominee, as the case may be, or impair, as
between the Depositary, its Agent Members and any other Person on whose behalf
an Agent Member may act, the operation of customary practices of such Persons
governing the exercise of the rights of a holder of any Security.

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

      Section 2.13 CUSIP Numbers. The Company may issue the Securities with one
or more "CUSIP" numbers (if then generally in use), and, if so, the Trustee
shall use "CUSIP" numbers in notices of redemption as a convenience to Holders;
provided that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Securities or as contained
in any notice of a redemption and that reliance may be placed only on the other
identification numbers printed on the Securities, and any such redemption shall
not be affected by any defect in or omission of such numbers. The Company will
promptly notify the Trustee of any change in the CUSIP numbers.

                                       20
<PAGE>

                                  ARTICLE III.
                            REDEMPTION AND PURCHASES

      Section 3.1 Company's Right to Redeem; Notices to Trustee. Prior to
November 1, 2009, the Securities will not be redeemable at the Company's option.
Beginning on November 1, 2009, the Company, at its option, may redeem the
Securities, subject to and in accordance with the terms and conditions of
Section 5 of the Securities, for cash, as a whole or in part, at a redemption
price equal to the principal amount of those Securities, if the Sale Price of
the Common Stock has exceeded 150% of the Conversion Price then in effect for at
least 20 Trading Days in any period of 30 consecutive Trading Days ending on the
Trading Day prior to the mailing of the Redemption Notice. In addition, the
Company will pay any accrued and unpaid interest, including Additional Amounts,
if any, on those Securities (including Securities which are converted into
Common Stock under the circumstances specified in Section 9.9) to the Redemption
Date. If the Company elects to redeem Securities pursuant to Section 5 of the
Securities, it shall notify the Trustee in writing of the Redemption Date, the
principal amount of Securities to be redeemed and the Redemption Price.

      The Company shall give the notice to the Trustee of its intention to
exercise its right to redeem the Securities as provided for in this Section 3.1
by a Company Order at least ten (10) Business Days prior to the day the
Redemption Notice is to be mailed.

      Section 3.2 Selection of Securities to Be Redeemed. If less than all the
Securities are to be redeemed, unless the procedures of the Depositary provide
otherwise, the Trustee shall select the Securities to be redeemed by lot, on a
pro rata basis or by another method the Trustee considers fair and appropriate
(so long as such method is not prohibited by the rules of any stock exchange on
which the Securities are then listed). The Trustee shall make the selection
within five Business Days after it receives the notice provided for in Section
3.1 from outstanding Securities not previously called for redemption. The
Trustee may select for redemption portions of the principal amount of Securities
that have denominations larger than $1,000.

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

      Securities and portions of Securities that are to be redeemed are
convertible by the Holder until the close of business on the second Business Day
prior to the Redemption Date unless the Company fails to pay the Redemption
Price on the Redemption Date. If any 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.

      Section 3.3 Notice of Redemption. At least 20 days but not more than 60
days before a Redemption Date, the Company shall mail a notice of redemption
(the "Redemption Notice") by first-class mail, postage prepaid, to each Holder
of Securities to be redeemed.

                                       21
<PAGE>

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

                  (1) the Redemption Date;

                  (2) the Redemption Price;

                  (3) the Conversion Price;

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

                  (5) that Securities called for redemption may be converted at
any time before the close of business on the second Business Day prior to the
Redemption Date;

                  (6) that Holders who wish to convert their Securities must
satisfy the requirements set forth in Section 8 of the Securities;

                  (7) that Securities called for redemption must be surrendered
to the Paying Agent to collect the Redemption Price;

                  (8) if fewer than all of the outstanding Securities are to be
redeemed, the certificate numbers, if any, and principal amounts of the
particular Securities to be redeemed;

                  (9) that, unless the Company defaults in making payment of
such Redemption Price, interest, including Additional Amounts, if any, on
Securities called for redemption will cease to accrue interest on and after the
Redemption Date; and

                  (10) the CUSIP number(s) of the Securities.

      At the Company's request, the Trustee shall give the notice of redemption
in the Company's name and at the Company's expense, provided that the Company
makes such request at least ten Business Days prior to the date by which such
notice of redemption is to be given to Holders in accordance with this Section
3.3, unless the Trustee agrees to a shorter period.

      Section 3.4 Effect of Notice of Redemption. Once notice of redemption is
given, Securities called for redemption become due and payable on the Redemption
Date and at the Redemption Price stated in the notice except for Securities
which are converted in accordance with the terms of this Indenture. Upon
surrender to the Paying Agent, such Securities shall be paid at the Redemption
Price stated in the notice.

      Section 3.5 Deposit of Redemption Price. Prior to 10:00 a.m., New York
City time, on the Redemption Date, the Company shall deposit with the Paying
Agent (or if the Company or a Subsidiary or an Affiliate of either of them is
the Paying Agent, shall segregate and hold in trust) money sufficient to pay the
applicable Redemption Price of all Securities to be redeemed on that date other
than Securities or portions of Securities called for redemption which on or
prior thereto have been delivered by the Company to the Trustee for cancellation
or have been converted. The Paying Agent shall as promptly as practicable return
to the Company any money not required for that purpose because of conversion of
Securities pursuant to Article IX. If such

                                       22
<PAGE>

money is then held by the Company in trust and is not required for such purpose,
it shall be discharged from such trust.

      Section 3.6 Securities Redeemed in Part. Upon surrender of a Security that
is redeemed in part, the Company shall execute and the Trustee shall
authenticate and deliver to the Holder a new Security in an authorized
denomination equal in principal amount to the unredeemed portion of the Security
surrendered.

      Section 3.7 Purchase of Securities at Option of the Holder upon
Fundamental Change. (a)(1) If a Fundamental Change occurs at any time prior to
the Stated Maturity (subject to certain exceptions set forth below), the
Securities not previously purchased or redeemed by the Company shall be
purchased by the Company for cash, at the option of the Holder thereof, at a
purchase price specified in Section 6 of the Securities (the "Fundamental Change
Purchase Price"), as of the date that is between 30 and 60 days after the date
of a notice of Fundamental Change delivered by the Company pursuant to Section
3.7(b) (the "Fundamental Change Purchase Date"), subject to satisfaction by or
on behalf of the Holder of the requirements set forth in Section 3.7(c).

      A "Fundamental Change" will be deemed to have occurred at such time after
the Securities are originally issued when any of the following events shall
occur:

                  (i) the acquisition by any Person, directly or indirectly,
through a purchase, merger or other acquisition transaction or series of
purchases, mergers or other acquisition transactions of shares of the Capital
Stock of the Company entitling that Person to exercise 50% or more of the total
voting power of all shares of the Capital Stock of the Company entitled to vote
generally in elections of directors, other than any acquisition by the Company,
any of its subsidiaries or any of its employee benefit plans; or

                  (ii) the first day on which a majority of the members of the
board of directors of the Company does not consist of Continuing Directors; or

                  (iii) the Company consolidates or merges with or into any
other Person, any merger of another Person into the Company, or any conveyance,
transfer, sale, lease or other disposition of all or substantially all of the
Company's properties and assets to another Person, other than: (A) any
transaction: (1) that does not result in any reclassification, conversion,
exchange or cancellation of outstanding shares of the Company's Capital Stock;
and (2) pursuant to which the holders of 50% or more of the total voting power
of the Company's Capital Stock entitled to vote generally in elections of
directors immediately prior to the transaction have the 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 elections of directors of the
continuing or surviving Person immediately after giving effect to such
transaction; and (B) any merger primarily for the purpose of changing the
Company's jurisdiction of incorporation and resulting in a reclassification,
conversion or exchange of outstanding shares of Common Stock, if at all, solely
into shares of common stock of the surviving entity, or

                  (iv) the termination of trading of the Common Stock, which
shall be deemed to have occurred if the Common Stock or other common stock into
which the notes are

                                       23
<PAGE>

convertible is neither listed for trading on a United States national securities
exchange nor approved for listing on Nasdaq or any similar United States system
of automated dissemination of quotations of securities prices or traded in
over-the-counter securities markets, and no American Depositary Shares or
similar instruments for such common stock are so listed or approved for listing
in the United States.

      A "Continuing Director" shall mean, as of any date of determination, any
member of the Board of Directors who:

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

                  (ii) was nominated for election, appointed or elected to the
Board of Directors with the approval of a majority of the Continuing Directors
who were members of the Board of Directors at the time of the new director's
nomination, appointment or election, either by a specific vote or by approval of
the proxy statement issued by the Company on behalf of the Company's entire
board of directors in which such individual is named as a nominee for director.

                  (2) Notwithstanding the provisions of Section 3.7(a)(1), the
Company shall not be required to purchase the Securities of the Holders upon a
Fundamental Change pursuant to this Section 3.7 (and a Fundamental Change shall
be deemed not to have occurred) if:

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

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

For the purposes of this Section 3.7, (x) whether a Person is a "beneficial
owner" shall be determined in accordance with Rule 13d-3 and Rule 13d-5 under
the Exchange Act (except that any of those Persons shall be deemed to have
beneficial ownership of all securities it has the right to acquire, whether the
right is currently exercisable or is exercisable only upon the

                                       24
<PAGE>

occurrence of a subsequent condition) and (y) the term "Person" includes any
syndicate or group that would be deemed to be a "person" under Section 13(d)(3)
of the Exchange Act.

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

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

                  (2) the date by which the Fundamental Change Purchase Notice
pursuant to this Section 3.7 must be delivered to the Paying Agent in order for
a Holder to exercise the repurchase rights;

                  (3) the Fundamental Change Purchase Date;

                  (4) the Fundamental Change Purchase Price;

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

                  (6) the Conversion Price and any adjustments thereto;

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

                  (8) that the Securities must be surrendered to the Paying
Agent to collect payment;

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

                  (10) briefly, the procedures the Holder must follow to
exercise rights under this Section 3.7;

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

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

                                       25
<PAGE>

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

                  (14) the CUSIP number(s) of the Securities.

      Without otherwise limiting the Company's obligations pursuant to this
Section 3.7 in any way, the Company shall also issue a press release through Dow
Jones & Company, Inc. containing the relevant information and otherwise make
this information available on the Company's web site or through another public
medium as the Company may use at that time.

            (c) A Holder may exercise its rights specified in Section 3.7(a)
upon delivery of a written notice of purchase (a "Fundamental Change Purchase
Notice") to the Paying Agent at any time on or prior to the close of business on
the second Business Day preceding the Fundamental Change Purchase Date (unless
the Company shall specify a later date), specifying:

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

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

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

      The delivery of such Security to the Paying Agent with the Fundamental
Change Purchase Notice (together with all necessary endorsements) at the offices
of the Paying Agent shall be a condition to the receipt by the Holder of the
Fundamental Change Purchase Price therefor; provided, however, that such
Fundamental Change Purchase Price shall be so paid pursuant to this Section 3.7
and Section 3.8 only if the Security so delivered to the Paying Agent shall
conform in all respects to the description thereof set forth in the related
Fundamental Change Purchase Notice.

      The Company shall purchase from the Holder thereof, pursuant to this
Section 3.7 and Section 3.8, a portion of a Security if the principal amount of
such portion is $1,000 or an integral multiple of $1,000. Provisions of this
Indenture that apply to the purchase of all of a Security also apply to the
purchase of such portion of such Security.

      Any purchase by the Company contemplated pursuant to the provisions of
this Section 3.7 and Section 3.8 shall be consummated by the delivery of the
consideration to be received by the Holder.

      Notwithstanding anything herein to the contrary, any Holder delivering to
the Paying Agent the Fundamental Change Purchase Notice contemplated by this
Section 3.7(c) shall have the right to withdraw such Fundamental Change Purchase
Notice, in whole or in part, at any time

                                       26
<PAGE>

prior to the close of business on the Fundamental Change Purchase Date by
delivery of a written notice of withdrawal to the Paying Agent in accordance
with Section 3.8.

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

      Section 3.8 Effect of Fundamental Change Purchase Notice; Withdrawal. Upon
receipt by the Paying Agent of the Fundamental Change Purchase Notice specified
in Section 3.7(c), the Holder of the Security in respect of which such
Fundamental Change Purchase Notice was given shall (unless such Fundamental
Change Purchase Notice is withdrawn as specified in the following two
paragraphs) thereafter be entitled to receive solely the Fundamental Change
Purchase Price with respect to such Security. Such Fundamental Change Purchase
Price shall be paid to such Holder, subject to the receipt of funds by the
Paying Agent, promptly following the later of (x) the Fundamental Change
Purchase Date with respect to such Security (provided the conditions in Section
3.7(c) have been satisfied) and (y) the time of delivery of such Security to the
Paying Agent by the Holder thereof in the manner required by Section 3.7(c).
Securities in respect of which a Fundamental Change Purchase Notice has been
given by the Holder thereof may not be converted pursuant to Article IX hereof
on or after the date of the delivery of such Fundamental Change Purchase Notice
unless such Fundamental Change Purchase Notice has first been validly withdrawn
as specified in the following two paragraphs.

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

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

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

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

      There shall be no purchase of any Securities pursuant to Section 3.7 if
there has occurred (prior to, on or after, as the case may be, the giving, by
the Holders of such Securities, of the required Fundamental Change Purchase
Notice) and is continuing an Event of Default (other than a default in the
payment of the Fundamental Change Purchase Price with respect to such
Securities). The Paying Agent will promptly return to the respective Holders
thereof any Securities (x) with respect to which a Fundamental Change Purchase
Notice has been withdrawn in compliance with this Indenture, or (y) held by it
during the continuance of an Event of Default (other than a default in the
payment of the Fundamental Change Purchase Price with respect to such
Securities) in which case, upon such return, the Purchase Notice with respect
thereto shall Fundamental Change be deemed to have been withdrawn.

                                       27
<PAGE>

      Section 3.9 Deposit of Fundamental Change Purchase Price. Prior to 10:00
a.m., New York City time, on the Business Day following the Fundamental Change
Purchase Date, the Company shall deposit with the Trustee or with the Paying
Agent (or, if the Company or a Subsidiary or an Affiliate of either of them is
acting as the Paying Agent, shall segregate and hold in trust as provided in
Section 2.4) an amount of cash (in immediately available funds if deposited on
such Business Day) sufficient to pay the aggregate Fundamental Change Purchase
Price of all the Securities or portions thereof which are to be purchased as of
the Fundamental Change Purchase Date.

      Section 3.10 Securities Purchased in Part. Any Certificated Security which
is to be purchased only in part shall be surrendered at the office of the Paying
Agent (with, if the Company or the Trustee so requires, due endorsement by, or a
written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or such Holder's attorney duly
authorized in writing) and the Company shall execute and the Trustee shall
authenticate and deliver to the Holder of such 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
portion of the principal amount of the Security so surrendered which is not
purchased.

      Section 3.11 Covenant to Comply With Securities Laws Upon Purchase of
Securities. When complying with the provisions of Section 3.7 (provided that
such offer or purchase constitutes an "issuer tender offer" for purposes of Rule
13e-4 (which term, as used herein, includes any successor provision thereto)
under the Exchange Act at the time of such offer or purchase), and subject to
any exemptions available under applicable law, the Company shall (i) comply with
Rule 13e-4 and Rule 14e-1 (or any successor provision) under the Exchange Act,
(ii) file the related Schedule TO (or any successor schedule, form or report)
under the Exchange Act, and (iii) otherwise comply with all Federal and state
securities laws so as to permit the rights and obligations under Section 3.7 to
be exercised in the time and in the manner specified in Section 3.7.

      Section 3.12 Repayment to the Company. The Trustee and the Paying Agent
shall return to the Company any cash that remains unclaimed as provided in
Section 11 of the Securities, together with interest or dividends, if any,
thereon (subject to the provisions of Section 7.1(f)), held by them for the
payment of the Fundamental Change Purchase Price; provided, however, that to the
extent that the aggregate amount of cash deposited by the Company pursuant to
Section 3.9 exceeds the aggregate Fundamental Change Purchase Price of the
Securities or portions thereof which the Company is obligated to purchase as of
the Fundamental Change Purchase Date, then, unless otherwise agreed in writing
with the Company, promptly after the Business Day following the Fundamental
Change Purchase Date, the Trustee shall return any such excess to the Company
together with interest thereon (subject to the provisions of Section 7.1(f)).

                                   ARTICLE IV.
                                   COVENANTS

      Section 4.1 Payment of Securities. The Company shall promptly make all
payments in respect of the Securities on the dates and in the manner provided in
the Securities or pursuant to

                                       28
<PAGE>

this Indenture. Any amounts of cash to be given to the Trustee or Paying Agent,
shall be deposited with the Trustee or Paying Agent by 10:00 a.m., New York City
time, by the Company. Principal amount plus accrued interest, if any, including
Additional Amounts, if any, the Redemption Price, the Fundamental Change
Purchase Price and cash interest, if any, shall be considered paid on the
applicable date due if on such date the Trustee or the Paying Agent holds, in
accordance with this Indenture, cash sufficient to pay all such amounts then
due.

      Section 4.2 SEC and Other Reports. The Company shall file with the
Trustee, within 15 days after it files such annual and quarterly reports,
information, documents and other reports with the SEC, copies of its annual
report and of the information, documents and other reports (or copies of such
portions of any of the foregoing as the SEC may by rules and regulations
prescribe) which the Company is required to file with the SEC pursuant to
Section 13 or 15(d) of the Exchange Act. The Company also shall comply with the
other provisions of TIA Section 314(a). Delivery of such reports, information
and documents to the Trustee is for informational purposes only and the
Trustee's receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained
therein, including the Company's compliance with any of its covenants hereunder
(as to which the Trustee is entitled to rely conclusively on Officers'
Certificates).

      Section 4.3 Compliance Certificate. The Company shall deliver to the
Trustee within 120 days after the end of each fiscal year of the Company
(beginning with the fiscal year ending on December 31, 2005) an Officers'
Certificate, stating whether or not to the knowledge of the signers 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.

      Section 4.4 Further Instruments and Acts. Upon request of the Trustee, the
Company will execute and deliver such further instruments and do such further
acts as may be reasonably necessary or proper to carry out more effectively the
purposes of this Indenture.

      Section 4.5 Maintenance of Office or Agency. The Company will maintain in
the Borough of Manhattan, The City of New York, an office or agency of the
Trustee, Registrar, Paying Agent and Conversion Agent where Securities may be
presented or surrendered for payment, where Securities may be surrendered for
registration of transfer, exchange, purchase, redemption or conversion and where
notices and demands to or upon the Company in respect of the Securities and this
Indenture may be served. The office of U.S. Bank Trust National Association, an
Affiliate of the Trustee with an office at 100 Wall Street, Suite 1600, New
York, New York 10005 (Attention: Corporate Trust Services), shall initially be
such office or agency for all of the aforesaid purposes. The Company shall give
prompt written notice to the Trustee of the location, and of any change in the
location, of any such office or agency (other than a change in the location of
the office of 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 address of the Trustee set forth in Section 11.2.

                                       29
<PAGE>

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

      Section 4.6 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 or any beneficial owner of Securities or holder or beneficial owner 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 or any beneficial owner of Securities or holder or beneficial owner
of shares of Common Stock, or to a prospective purchaser of any such security
designated by any such 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 in connection with the resale of any such security. "Rule 144A Information"
shall be such information as is specified pursuant to Rule 144A(d)(4) under the
Securities Act. Whether a Person is a beneficial owner shall be determined by
the Company to the Company's reasonable satisfaction.

      Section 4.7 Treatment of Securities. Each Holder, by acceptance of a
Security, and beneficial owner, by acceptance of a beneficial ownership interest
in a Security, agrees to treat the Securities as indebtedness of the Company for
U.S. federal income tax purposes and not to take any action inconsistent with
such treatment.

      Section 4.8 Additional Amounts. If Additional Amounts are payable by the
Company upon a registration default pursuant to the Registration Rights
Agreement, the Company shall deliver to the Trustee a certificate to that effect
stating (i) the amount of such Additional Amounts per $1,000 principal amount of
the Notes that are payable, (ii) the facts and calculations supporting the
determination of such amount and (iii) the date on which such damages are
payable. Unless and until a Responsible Officer of the Trustee receives such a
certificate, the Trustee may assume without inquiry that no Additional Amounts
are payable.

                                   ARTICLE V.
                              SUCCESSOR CORPORATION

      Section 5.1 When Company May Merge or Transfer Assets. The Company shall
not consolidate with or merge with or into any other Person or convey, transfer,
sell, lease or otherwise dispose of all or substantially all of its properties
and assets to any Person, unless:

            (a) either (1) the Company shall be the continuing corporation or
(2) the Person (if other than the Company) formed by such consolidation or into
which the Company is merged or the Person which acquires by conveyance, transfer
or lease all or substantially all of the properties and assets of the Company
substantially as an entirety (i) shall be organized and validly existing under
the laws of the United States or any State thereof or the District of Columbia
and (ii) shall expressly assume, by an indenture supplemental hereto, executed
and delivered to the Trustee, in form reasonably satisfactory to the Trustee,
all of the obligations of the Company under the Securities and this Indenture;

                                       30
<PAGE>

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

            (c) the Company shall have delivered to the Trustee an Officers'
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 V and that all conditions precedent herein provided for
relating to such transaction have been satisfied.

      For purposes of the foregoing, the transfer (by lease, assignment
(excluding the grant of a security interest but including any foreclosure
thereon), sale or otherwise) of the properties and assets of one or more
Subsidiaries (other than to the Company or another Subsidiary), which, if such
assets were owned by the Company, would constitute all or substantially all of
the properties and assets of the Company, shall be deemed to be the transfer of
all or substantially all of the properties and assets of the Company.

      The successor Person formed by such consolidation or into which the
Company is merged or the successor Person 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 had been named as the Company herein; and thereafter, except in
the case of a lease and obligations the Company may have under a supplemental
indenture, the Company shall be discharged from all obligations and covenants
under this Indenture and the Securities. Subject to Section 8.6, the Company,
the Trustee and the successor Person shall enter into a supplemental indenture
to evidence the succession and substitution of such successor Person and such
discharge and release of the Company.

                                  ARTICLE VI.
                              DEFAULTS AND REMEDIES

      Section 6.1 Events of Default. So long as any Securities are outstanding,
each of the following shall be an "Event of Default":

                  (1) the Company defaults in the payment of the principal
amount on any Security when the same becomes due and payable at its Stated
Maturity;

                  (2) the Company defaults in its obligation to repurchase any
Security, or any portion thereof, upon the exercise by the Holder of such Holder
s right to require the Company to purchase such Securities pursuant to and in
accordance with Section 3.7 hereof;

                  (3) the Company defaults in its obligation to redeem any
Security, or any portion thereof, called for redemption by the Company pursuant
to and in accordance with Section 3.1 hereof;

                  (4) the Company defaults in the payment of any accrued and
unpaid interest, including Additional Amounts, if any, on any Security, in each
case when due and payable, and continuance of such default for a period of 30
days;

                                       31
<PAGE>

                  (5) the Company fails to comply with any of its covenants or
agreements in the Securities or this Indenture (other than those referred to in
clauses (1) through (4) above) and such failure continues for 60 days after
receipt by the Company of a Notice of Default;

                  (6) a default under any indebtedness for money borrowed by the
Company or any Significant Subsidiary in an aggregate outstanding principal
amount in excess of $10.0 million, for a period of 30 days after written notice
of default is given to the Company by the Trustee or to the Company and the
Trustee by Holders of not less than 25% in aggregate principal amount of the
Securities then outstanding, which default (A) is caused by the failure to pay
principal or interest when due on such indebtedness by the end of the applicable
grace period, if any, unless such indebtedness is discharged, or (B) results in
the acceleration of such indebtedness, unless such acceleration is waived,
cured, rescinded or annulled or unless such indebtedness is discharged;

                  (7) the entry by a court having jurisdiction in the premises
of (i) a decree or order for relief in respect of the Company or any of its
Subsidiaries that is a Significant Subsidiary, in an involuntary case or
proceeding under any applicable bankruptcy, insolvency, reorganization or other
similar law or (ii) a decree or order adjudging the Company or any of its
Subsidiaries that is a Significant Subsidiary, as 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 of its
Subsidiaries that is a Significant Subsidiary, under any applicable law, or
appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or
other similar official of the Company or of any substantial part of its
property, 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

                  (8) the commencement by the Company or any of its Subsidiaries
that is a Significant Subsidiary, of a voluntary case or proceeding under any
applicable 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 the Company or any of its Subsidiaries that is a Significant
Subsidiary, to the entry of a decree or order for relief in respect of the
Company or any of its Subsidiaries that is a Significant Subsidiary, in an
involuntary case or proceeding under any applicable bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any bankruptcy or
insolvency case or proceeding against the Company, or the filing by the Company
or any of its Subsidiaries that is a Significant Subsidiary, of a petition or
answer or consent seeking reorganization or relief under any applicable law, or
the consent by the Company to the filing of such petition or to the appointment
of or the taking possession by a custodian, receiver, liquidator, assignee,
trustee, sequestrator or other similar official of the Company or of any
substantial part of its property, or the making by the Company or any of its
Subsidiaries that is a Significant Subsidiary, of an assignment for the benefit
of creditors, or the admission by the Company or any of its Subsidiaries that is
a Significant Subsidiary, 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 of
its Subsidiaries that is a Significant Subsidiary, expressly in furtherance of
any such action.

                                       32
<PAGE>

      A Default under clause (5) above is not an Event of Default until the
Trustee notifies the Company, or the Holders of at least 25% in aggregate
principal amount of the Securities at the time outstanding notify the Company
and the Trustee, of the Default and the Company does not cure such Default (and
such Default is not waived) within the time specified in clause (5) above after
actual receipt of such notice. Any such notice must specify the Default, require
that it be remedied and state that such notice is a "Notice of Default."

      The Trustee shall, within 90 days of the occurrence of a Default or Event
of Default, give to the Holders of the Securities notice of all uncured Defaults
or Events of Default known to it, its status and what action the Company is
taking or proposes to take with respect thereto; provided, however, the Trustee
shall be protected in withholding such notice if it, in good faith, determines
that the withholding of such notice is in the best interest of such Holders,
except in the case of a Default or Event of Default under clause (1), (2), (3)
or (4) above.

      Section 6.2 Acceleration. If an Event of Default (other than an Event of
Default specified in Section 6.1(7) or (8) with respect to the Company) occurs
and is continuing (the Event of Default not having been cured or waived as
provided in this Article VI), the Trustee by notice to the Company, or the
Holders of at least 25% in aggregate principal amount of the Securities at the
time outstanding by notice to the Company and the Trustee, may declare the
principal amount plus accrued and unpaid interest, including Additional Amounts,
if any, on all the Securities to be immediately due and payable. Upon such a
declaration, such accelerated amount shall be due and payable immediately. If an
Event of Default specified in Section 6.1(7) or (8) occurs (with respect to the
Company) and is continuing, the principal amount plus accrued and unpaid
interest, including Additional Amounts, if any, on all the Securities shall
become and be immediately due and payable without any declaration or other act
on the part of the Trustee or any Securityholders. The Holders of a majority in
aggregate principal amount of the Securities at the time outstanding, by notice
to the Trustee (and without notice to any other Securityholder) may rescind or
annul an acceleration and its consequences if the rescission or annulment would
not conflict with any judgment or decree and if all existing Events of Default
have been cured or waived except nonpayment of the principal amount plus accrued
and unpaid interest, including Additional Amounts, if any, that have become due
solely as a result of acceleration and if all amounts due to the Trustee under
Section 7.7 have been paid. No such rescission or annulment shall affect any
subsequent Default or impair any right consequent thereto.

      Section 6.3 Other Remedies. If an Event of Default occurs and is
continuing, the Trustee may pursue any available remedy to collect the payment
of the principal amount plus accrued and unpaid interest, including Additional
Amounts, if any, on the Securities or to enforce the performance of any
provision of the Securities or this Indenture.

      The Trustee may maintain a proceeding even if the Trustee does not possess
any of the Securities or does not produce any of the Securities in the
proceeding. A delay or omission by the Trustee or any Securityholder in
exercising any right or remedy accruing upon an Event of Default shall not
impair the right or remedy or constitute a waiver of, or acquiescence in, the
Event of Default. No remedy is exclusive of any other remedy. All available
remedies are cumulative.

                                       33
<PAGE>

      Section 6.4 Waiver of Past Defaults. The Holders of a majority in
aggregate principal amount of the Securities at the time outstanding, by notice
to the Trustee (and without notice to any other Securityholder), may waive an
existing Default or Event of Default and its consequences except (i) an Event of
Default described in Section 6.1(1), 6.1(2), 6.1(3) or 6.1(4), (ii) a Default or
Event of Default in respect of a provision that under Section 8.2 cannot be
amended without the consent of each Securityholder affected or (iii) a Default
or Event of Default which constitutes a failure to convert any Security in
accordance with the terms of Article IX. When a Default or Event of Default is
waived, it is deemed cured, but no such waiver shall extend to any subsequent or
other Default or Event of Default or impair any consequent right. This Section
6.4 shall be in lieu of Section 316(a)(1)(B) of the TIA and such Section
316(a)(1)(B) is hereby expressly excluded from this Indenture, as permitted by
the TIA.

      Section 6.5 Control by Majority. The Holders of a majority in aggregate
principal amount of the Securities at the time outstanding may direct the time,
method and place of conducting any proceeding for any remedy available to the
Trustee or of exercising any trust or power conferred on the Trustee. However,
the Trustee may refuse to follow any direction that conflicts with law or this
Indenture or that the Trustee determines in good faith is unduly prejudicial to
the rights of other Securityholders or would involve the Trustee in personal
liability unless the Trustee is offered indemnity satisfactory to it. This
Section 6.5 shall be in lieu of Section 316(a)(1)(A) of the TIA and such Section
316(a)(1)(A) is hereby expressly excluded from this Indenture, as permitted by
the TIA.

      Section 6.6 Limitation on Suits. A Securityholder may not pursue any
remedy with respect to this Indenture or the Securities unless:

                  (1) the Holder gives to the Trustee written notice stating
that an Event of Default is continuing;

                  (2) the Holders of at least 25% in aggregate principal amount
of the Securities at the time outstanding make a written request to the Trustee
to pursue the remedy;

                  (3) such Holder or Holders offer to the Trustee security or
indemnity satisfactory to the Trustee against any loss, liability or expense;

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

                  (5) the Holders of a majority in aggregate principal amount of
the Securities at the time outstanding do not give the Trustee a direction
inconsistent with the request during such 60-day period.

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

      Section 6.7 Rights of Holders to Receive Payment. Notwithstanding any
other provision of this Indenture, the right of any Holder to receive payment of
the principal amount, Redemption Price, Fundamental Change Purchase Price or
interest, including Additional Amounts, if any, in respect of the Securities
held by such Holder, on or after the respective due

                                       34
<PAGE>

dates expressed in the Securities or any Redemption Date, and to convert the
Securities in accordance with Article IX, or to bring suit for the enforcement
of any such payment on or after such respective dates or the right to convert,
shall not be impaired or affected adversely without the consent of such Holder.

      Section 6.8 Collection Suit by Trustee. If an Event of Default described
in Section 6.1(1), (2), (3) or (4) occurs and is continuing, the Trustee may
recover judgment in its own name and as trustee of an express trust against the
Company for the whole amount owing with respect to the Securities and the
amounts provided for in Section 7.7.

      Section 6.9 Trustee May File Proofs of Claim. In case of the pendency of
any receivership, insolvency, liquidation, bankruptcy, reorganization,
arrangement, adjustment, composition or other judicial proceeding relative to
the Company or any other obligor upon the Securities or the property of the
Company or of such other obligor or their creditors, the Trustee (irrespective
of whether the principal amount, Redemption Price, Fundamental Change Purchase
Price or interest, including Additional Amounts, if any, in respect of the
Securities shall then be due and payable as therein expressed or by declaration
or otherwise and irrespective of whether the Trustee shall have made any demand
on the Company for the payment of any such amount) shall be entitled and
empowered, by intervention in such proceeding or otherwise,

            (a) to file and prove a claim for the whole amount of the principal
amount, Redemption Price, Fundamental Change Purchase Price, or interest,
including Additional Amounts, if any, and to file such other papers or documents
as may be necessary or advisable in order to have the claims of the Trustee
(including any claim for the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel or any other amounts due the
Trustee under Section 7.7) and of the Holders allowed in such judicial
proceeding, and

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

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

      Section 6.10 Priorities. If the Trustee collects any money pursuant to
this Article VI, it shall pay out the money in the following order:

      FIRST: to the Trustee for amounts due under Section 7.7;

      SECOND: to Securityholders for amounts due and unpaid on the Securities
for the principal amount, Redemption Price, Fundamental Change Purchase Price or
interest, including

                                       35
<PAGE>

Additional Amounts, if any, as the case may be, ratably, without preference or
priority of any kind, according to such amounts due and payable on the
Securities; and

      THIRD: the balance, if any, to the Company.

      The Trustee may fix a record date and payment date for any payment to
Securityholders pursuant to this Section 6.10. At least 15 days before such
record date, the Trustee shall mail to each Securityholder and the Company a
notice that states the record date, the payment date and the amount to be paid.

      Section 6.11 Undertaking for Costs. In any suit for the enforcement of any
right or remedy under this Indenture or in any suit against the Trustee for any
action taken or omitted by it as Trustee, a court in its discretion may require
the filing by any party litigant (other than the Trustee) in the suit of an
undertaking to pay the costs of the suit, and the court in its discretion may
assess reasonable costs, including reasonable attorneys' fees and expenses,
against any party litigant in the suit, having due regard to the merits and good
faith of the claims or defenses made by the party litigant. This Section 6.11
does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section
6.7 or a suit by Holders of more than 10% in aggregate principal amount of the
Securities at the time outstanding. This Section 6.11 shall be in lieu of
Section 315(e) of the TIA and such Section 315(e) is hereby expressly excluded
from this Indenture, as permitted by the TIA.

      Section 6.12 Waiver of Stay, Extension or Usury 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 or extension law or any usury or other law
wherever enacted, now or at any time hereafter in force, which would prohibit or
forgive the Company from paying all or any portion of the principal amount,
Redemption Price or Fundamental Change Purchase Price in respect of Securities,
or any interest, including Additional Amounts, if any, on such amounts, as
contemplated herein, or which 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 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 VII.
                                     TRUSTEE

      Section 7.1 Duties of Trustee.

            (a) If an Event of Default has occurred and is continuing, the
Trustee shall exercise the rights and powers vested in it by this Indenture and
use the same degree of care and skill in its exercise as a prudent person would
exercise or use under the circumstances in the conduct of such person's own
affairs.

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

                                       36
<PAGE>

                  (1) the Trustee need perform only those duties that are
specifically set forth in this Indenture and no others; and

                  (2) 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 examine the
certificates and opinions to determine whether or not they conform to the
requirements of this Indenture, but need not confirm or investigate the accuracy
of mathematical calculations or other facts stated therein. This Section 7.1(b)
shall be in lieu of Section 315(a) of the TIA and such Section 315(a) is hereby
expressly excluded from this Indenture, as permitted by the TIA.

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

                  (1) this Section (c) does not limit the effect of Section (b)
of this Section 7.1;

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

                  (3) the Trustee shall not be liable with respect to any action
it takes or omits to take in good faith in accordance with a direction received
by it pursuant to Section 6.5. Subparagraphs(c)(1), (2) and (3) shall be in lieu
of Sections 315(d)(1), 315(d)(2) and 315(d)(3) of the TIA and such Sections
315(d)(1), 315(d)(2) and 315(d)(3) are hereby expressly excluded from this
Indenture, as permitted by the TIA.

            (d) Every provision of this Indenture that in any way relates to the
Trustee is subject to paragraphs (a), (b), (c), (e) and (f) of this Section 7.1.

            (e) The Trustee may refuse to perform any duty or exercise any right
or power or extend or risk its own funds or otherwise incur any financial
liability unless it receives indemnity satisfactory to it against any loss,
liability or expense.

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

      Section 7.2 Rights of Trustee. Subject to its duties and responsibilities
under the TIA,

            (a) the Trustee may conclusively rely and shall be protected in
acting or refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness

                                       37
<PAGE>

or other paper or document believed by it to be genuine and to have been signed
or presented by the proper party or parties;

            (b) 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 herein specifically prescribed) may, in the absence of bad faith on its part,
conclusively rely upon an Officers Certificate;

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

            (d) the Trustee shall not be liable for any action taken, suffered,
or omitted to be taken by it in good faith which it believes to be authorized or
within its rights or powers conferred under this Indenture;

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

            (f) the Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Indenture at the request, order or
direction of any of the Holders, pursuant to the provisions of this Indenture,
unless such Holders shall have offered to the Trustee security or indemnity
satisfactory to it against the costs, expenses and liabilities which may be
incurred therein or thereby;

            (g) 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 may be sufficiently evidenced by a Board
Resolution;

            (h) 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, other evidence of indebtedness or other paper or document, but
the Trustee, in its discretion, 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 at the sole cost of the Company and shall incur no liability or
additional liability of any kind by reason of such inquiry or investigation;

            (i) the Trustee shall not be deemed to have notice of any Default or
Event of Default unless a Responsible Officer of the Trustee has actual
knowledge thereof or unless written notice of any event which is in fact such a
default is received by the Trustee at the Corporate Trust Office of the Trustee,
and such notice references the Securities and this Indenture;

                                       38
<PAGE>

            (j) the rights, privileges, protections, immunities and benefits
given to the Trustee, including, without limitation, its right to be
indemnified, are extended to, and shall be enforceable by, the Trustee in each
of its capacities hereunder, and to each agent, custodian and other Person
employed to act hereunder;

            (k) in no event shall the Trustee be responsible or liable for
special, indirect or consequential loss of damage of any kind whatsoever
(including, but not limited to, loss of profit) irrespective of whether the
Trustee has been advised of the likelihood of such loss or damage and regardless
of the form of action; and

            (l) the Trustee may request that the Company deliver an Officers'
Certificate setting forth the names of individuals and/or titles of officers
authorized at such time to take specified actions pursuant to this Indenture,
which Officers' Certificate may be signed by any Person authorized to sign an
Officers' Certificate, including any Person specified as so authorized in any
such certificate previously delivered and not superseded.

      Section 7.3 Individual Rights of Trustee. The Trustee in its individual or
any other capacity may become the owner or pledgee of Securities and may
otherwise deal with the Company or its Affiliates with the same rights it would
have if it were not Trustee. Any Paying Agent, Registrar, Conversion Agent or
co-registrar may do the same with like rights. However, the Trustee must comply
with Sections 7.10 and 7.11.

      Section 7.4 Trustee's Disclaimer. The Trustee makes no representation as
to the validity or adequacy of this Indenture or the Securities, it shall not be
accountable for the Company's use or application of the proceeds from the
Securities, it shall not be responsible for any statement in the registration
statement for the Securities under the Securities Act or in any offering
document for the Securities, the Indenture or the Securities (other than its
certificate of authentication), or the determination as to which beneficial
owners are entitled to receive any notices hereunder.

      Section 7.5 Notice of Defaults. If a Default occurs and if it is known to
the Trustee, the Trustee shall give to each Securityholder notice of the Default
within 90 days after it occurs or, if later, within 15 days after it is known to
the Trustee, unless such Default shall have been cured or waived before the
giving of such notice. Notwithstanding the preceding sentence, except in the
case of a Default described in Section 6.1(1), (2), (3) or (4), the Trustee may
withhold the notice if and so long as a committee of its Responsible Officers in
good faith determines that withholding the notice is in the interest of the
Securityholders. The preceding sentence shall be in lieu of the proviso to
Section 315(b) of the TIA and such proviso is hereby expressly excluded from
this Indenture, as permitted by the TIA. The Trustee shall not be deemed to have
knowledge of a Default unless a Responsible Officer of the Trustee has received
written notice of such Default, which notice specifically references this
Indenture and the Securities.

      Section 7.6 Reports by Trustee to Holders. Within 60 days after each May
15 beginning with the May 15 following the date of this Indenture, the Trustee
shall mail to each Securityholder a brief report dated as of such May 15 that
complies with TIA Section 313(a), if required by such Section 313(a). The
Trustee also shall comply with TIA Section 313(b).

                                       39
<PAGE>

      A copy of each report at the time of its mailing to Securityholders shall
be filed with the SEC and each securities exchange, if any, on which the
Securities are listed. The Company agrees to notify the Trustee promptly
whenever the Securities become listed on any securities exchange and of any
delisting thereof.

      Section 7.7 Compensation and Indemnity. The Company agrees:

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

            (b) to reimburse the Trustee upon its request for all reasonable
expenses, disbursements and advances incurred or made by the Trustee in
accordance with any provision of this Indenture (including the reasonable
compensation and the expenses, advances and disbursements of its agents and
counsel), except any such expense, disbursement or advance as may be
attributable to its negligence or bad faith; and

            (c) to indemnify the Trustee or any predecessor Trustee and their
agents for, and to hold them harmless against, any loss, damage, claim,
liability, cost or expense (including attorney's fees and expenses, and taxes
(other than taxes based upon, measured by or determined by the income of the
Trustee and any and all franchise taxes of the Trustee)) incurred without
negligence or bad faith on its part, arising out of or in connection with the
acceptance or administration of this trust, including the costs and expenses of
defending itself against any claim (whether asserted by the Company or any
Holder or any other Person) or liability in connection with the exercise or
performance of any of its powers or duties hereunder.

      To secure the Company's payment obligations in this Section 7.7, the
Trustee shall have a lien prior to the Securities on all money or property held
or collected by the Trustee, except that held in trust to pay the principal
amount, Redemption Price, Fundamental Change Purchase Price or interest,
including Additional Amounts, if any, as the case may be, on particular
Securities.

      The Company's payment obligations pursuant to this Section 7.7 shall
survive the discharge of this Indenture and the resignation or removal of the
Trustee. When the Trustee incurs expenses or renders services after the
occurrence of a Default specified in Section 6.1(6) or (7), the expenses
including the reasonable charges and expenses of its counsel, and the
compensation for the services are intended to constitute expenses of
administration under any bankruptcy law.

      Section 7.8 Replacement of Trustee. The Trustee may resign by so notifying
the Company; provided, however, no such resignation shall be effective until a
successor Trustee has accepted its appointment pursuant to this Section 7.8. The
Holders of a majority in aggregate principal amount of the Securities at the
time outstanding may remove the Trustee by so notifying the Trustee and the
Company. The Company shall remove the Trustee if:

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

                                       40
<PAGE>

                  (2) the Trustee is adjudged bankrupt or insolvent;

                  (3) a receiver or public officer takes charge of the Trustee
or its property; or

                  (4) the Trustee otherwise becomes incapable of acting.

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

      A successor Trustee shall deliver a written acceptance of its appointment
to the retiring Trustee and to the Company satisfactory in form and substance to
the retiring Trustee and the Company. Thereupon the resignation or removal of
the retiring Trustee shall become effective, and the successor Trustee shall
have all the rights, powers and duties of the Trustee under this Indenture. The
successor Trustee shall mail a notice of its succession to Securityholders. The
retiring Trustee shall promptly transfer all property held by it as Trustee to
the successor Trustee, subject to the lien provided for in Section 7.7.

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

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

      Section 7.9 Successor Trustee by Merger. If the Trustee consolidates with,
merges or converts into, or transfers all or substantially all its corporate
trust business or assets (including the administration of the trust created by
this Indenture) to, another corporation, the resulting, surviving or transferee
corporation without any further act shall be the successor Trustee.

      Section 7.10 Eligibility; Disqualification. The Trustee shall at all times
satisfy the requirements of TIA Sections 310(a)(1) and 310(b). The Trustee (or
its parent holding company) shall have a combined capital and surplus of at
least $50,000,000 as set forth in its most recent published annual report of
condition. Nothing herein contained shall prevent the Trustee from filing with
the SEC the application referred to in the penultimate paragraph of TIA Section
310(b).

      Section 7.11 Preferential Collection of Claims Against Company. The
Trustee shall comply with TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b). A Trustee who has resigned or been
removed shall be subject to TIA Section 311(a) to the extent indicated therein.

      Section 7.12 Force Majeure. In no event shall the Trustee be responsible
or liable for any failure or delay in the performance of its obligations under
this Indenture arising out of or

                                       41
<PAGE>

caused by, directly or indirectly, forces beyond its reasonable control,
including without limitation strikes, work stoppages, accidents, acts of war or
terrorism, civil or military disturbances, nuclear or natural catastrophes or
acts of god, and interruptions, loss or malfunctions or utilities,
communications or computer (software or hardware) services.

                                 ARTICLE VIII.
                                   AMENDMENTS

      Section 8.1 Without Consent of Holders. The Company and the Trustee may
amend, modify or supplement this Indenture or the Securities without the consent
of any Securityholder to:

            (a) add to the covenants of the Company for the benefit of the
Holders of Securities;

            (b) surrender any right or power herein conferred upon the Company;

            (c) provide for conversion rights of Holders of Securities if any
reclassification or change of the Common Stock or any consolidation, merger or
sale of all or substantially all of the Company's assets occurs;

            (d) provide for the assumption of the Company's obligations to the
Holders of Securities in the case of a merger, consolidation, conveyance,
transfer or lease pursuant to Article V hereof;

            (e) subject to Section 9.3(m), reduce the Conversion Price, provided
that such reduction will not adversely affect the interest of the Holders;

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

            (g) cure any ambiguity, to correct or supplement any provision
herein which may be inconsistent with any other provision herein or which is
otherwise defective; provided, however, that such action pursuant to this clause
(g) does not, in the good faith opinion of the Board of Directors of the Company
(as evidenced by a Board Resolution), adversely affect the interests of the
Holders of Securities in any material respect; and

            (h) add or modify any other provisions herein with respect to
matters or questions arising hereunder which the Company and the Trustee may
deem necessary or desirable and that will not, in the good faith opinion of the
Board of Directors of the Company (as evidenced by a Board Resolution),
adversely affect the interests of the Holders of Securities.

      Section 8.2 With Consent of Holders. Except as provided below in this
Section 8.2 and in Section 8.1, this Indenture or the Securities may be amended,
modified or supplemented, and noncompliance in any particular instance with any
provision of this Indenture or the Securities may be waived, in each case with
the written consent of the Holders of at least a majority of the principal
amount of the Securities at the time outstanding.

                                       42
<PAGE>

      Without the written consent or the affirmative vote of each Holder of
Securities affected thereby, an amendment or waiver under this Section 8.2 may
not:

            (a) change the maturity of the principal or the date any installment
of interest, including Additional Amounts, is due on, any Security;

            (b) reduce the principal amount of, or interest, including
Additional Amounts payable on, or the Redemption Price or Fundamental Change
Purchase Price of, any Security;

            (c) change the currency of any amount owed or owing under the
Security or any interest thereon from U.S. Dollars;

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

            (e) modify the obligation of the Company to maintain an office or
agency in The City of New York pursuant to Section 4.5;

            (f) except as otherwise permitted or contemplated by the provisions
of this Indenture, adversely affect the repurchase right of the Holders of the
Securities or the redemption provisions as provided in Article III or the right
of the Holders of the Securities to convert any Security as provided in Article
IX;

            (g) modify any of the provisions of this Section 8.2, or reduce the
principal amount of outstanding Securities required to waive a default, except
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; or

            (h) reduce the percentage of the 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 provided
for in this Indenture.

      It shall not be necessary for the consent of the Holders under this
Section 8.2 to approve the particular form of any proposed amendment, but it
shall be sufficient if such consent approves the substance thereof.

      After an amendment under this Section 8.2 becomes effective, the Company
shall mail to each Holder a notice briefly describing the amendment.

      Nothing in this Section 8.2 shall impair the ability of the Company and
the Trustee to amend this Indenture or the Securities without the consent of any
Securityholder to provide for the assumption of the Company's obligations to the
Holders of Securities in the case of a merger, consolidation, conveyance,
transfer or lease pursuant to Article V hereof.

      Section 8.3 Compliance with Trust Indenture Act. Every supplemental
indenture executed pursuant to this Article shall comply with the TIA.

                                       43
<PAGE>

      Section 8.4 Revocation and Effect of Consents, Waivers and Actions. Until
an amendment, waiver or other action by Holders becomes effective, a consent
thereto by a Holder of a Security hereunder is a continuing consent by the
Holder and every subsequent Holder of that Security or portion of the Security
that evidences the same obligation as the consenting Holder's Security, even if
notation of the consent, waiver or action is not made on the Security. However,
any such Holder or subsequent Holder may revoke the consent, waiver or action as
to such Holder's Security or portion of the Security if the Trustee receives the
notice of revocation before the date the amendment, waiver or action becomes
effective. After an amendment, waiver or action becomes effective, it shall bind
every Securityholder.

      Section 8.5 Notation on or Exchange of Securities. 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 Trustee and the Board of
Directors, 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 Trustee to Sign Supplemental Indentures. The Trustee shall
sign any supplemental indenture authorized pursuant to this Article VIII if the
amendment contained therein does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. If it does, the Trustee may, but need
not, sign such supplemental indenture. In signing such supplemental indenture
the Trustee shall receive, and (subject to the provisions of Section 7.1) shall
be fully protected in relying upon, an Officers' Certificate and an Opinion of
Counsel stating that such amendment is authorized or permitted by this
Indenture.

      Section 8.7 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 shall be bound thereby.

                                   ARTICLE IX.
                                   CONVERSIONS

      Section 9.1 Conversion Privilege.

      (a) Subject to and upon compliance with the provisions of this Article IX,
a Holder of a Security shall have the right, at such Holder's option, to convert
all or any portion (if the portion to be converted is $1,000 or an integral
multiple of $1,000) of such Security into shares of Common Stock at the
Conversion Price in effect on the date of conversion, at any time prior to the
close of business on the Business Day prior to the Stated Maturity of the
Securities.

      (b) Subject to Section 9.4 and Section 9.12, if a Holder elects to convert
a Security in connection with clauses (i) or (iii) under a Fundamental Change
referred to in Section 3.7 (or in connection with a transaction that would have
been a Fundamental Change under such clause (i) or (iii) but for the existence
of the 110% Trading Price Exception (as defined in Section 3.7))

                                       44
<PAGE>

pursuant to which 10% or more of the consideration for the Common Stock (other
than cash payments for fractional shares and cash payments made in respect of
dissenters' appraisal rights) in such transaction consists of cash or securities
(or other property) that are not traded or scheduled to be traded immediately
following such transaction on a U.S. national securities exchange or The Nasdaq
National Market (a "Non-Stock Change of Control"), the Company will increase the
number of shares of Common Stock issuable upon conversion of the Security by a
number of additional shares of Common Stock (the "Additional Common Stock") as
set forth below. The number of shares of Additional Common Stock will be
determined by reference to the table below, based on the date on which the
Non-Stock Change of Control becomes effective (the "Effective Date") and the
price (the "Stock Price") paid per share for the Common Stock in the Non-Stock
Change of Control. If Holders of Common Stock receive only cash in the Non-Stock
Change of Control, the Stock Price shall be the cash amount paid per share.
Otherwise, the Stock Price shall be the average of the Sale Prices of the Common
Stock on the five Trading Days prior to but not including the Effective Date of
such Non-Stock Change of Control.

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

            (1) the Stock Prices applicable immediately prior to such
adjustment, by

            (2) a fraction, of which

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

                  (B) the denominator shall be the Conversion Price immediately
            prior to the adjustment giving rise to the Stock Price adjustment.

The number of shares of Additional Common Stock shall be correspondingly
adjusted in the same manner as the adjustments described in Section 9.3.

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

<TABLE>
<CAPTION>
STOCK PRICE         $7.00    $8.50   $10.00   $11.50   $13.00   $14.50   $16.00   $17.50   $19.00   $20.50   $22.00    $23.50
----------------    -----    -----   ------   ------   ------   ------   ------   ------   ------   ------   ------    ------
<S>                 <C>      <C>     <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>       <C>
Effective Date
October 20, 2004    32.96    23.44    17.51    13.55    10.77     8.74     7.20     6.06     5.15     4.40     3.80     0.00
November 1, 2005    32.44    22.60    16.51    12.52     9.78     7.82     6.40     5.26     4.42     3.77     3.22     0.00
November 1, 2006    32.24    21.76    15.34    11.29     8.57     6.73     5.39     4.35     3.60     3.04     2.56     0.00
November 1, 2007    32.01    20.67    13.91     9.68     7.07     5.28     4.05     3.19     2.57     2.10     1.75     0.00
November 1, 2008    31.90    19.36    11.81     7.44     4.84     3.26     2.21     1.59     1.20     0.92     0.74     0.00
November 1, 2009    32.27    18.12     9.77     4.46     0.98     0.00     0.00     0.00     0.00     0.00     0.00     0.00
November 1, 2010    31.93    16.22     7.99     3.47     0.70     0.00     0.00     0.00     0.00     0.00     0.00     0.00
November 1, 2011     0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00
</TABLE>

                                       45
<PAGE>

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

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

                  (B) in excess of $23.50 per share (subject to adjustment), no
            shares of Additional Common Stock will be issued upon conversion; or

                  (C) less than $7.00 per share (subject to adjustment), no
            shares of Additional Common Stock will be issued upon conversion.

      Notwithstanding the foregoing, in no event shall the total number of
shares of Common Stock issuable upon conversion exceed 142.8571 per $1,000 of
aggregate principal amount of Securities, subject to adjustments in the same
manner as the Conversion Price in Section 9.3.

         (c) The Company shall provide notice to all Holders and to the Trustee
at least 15 Trading Days prior to the anticipated Effective Date of a Non-Stock
Change of Control. The Company must also provide notice to all Holders and to
the Trustee upon the effectiveness of such Non-Stock Change of Control. Subject
to Section 9.12, Holders may surrender Securities for conversion and receive the
Additional Common Stock pursuant to Section 9.1(b) at any time from and after
the date which is 15 days prior to the anticipated Effective Date of such
Fundamental Change until and including the date which is 15 days after the
actual Effective Date (or, if such transaction also results in Holders having a
right to require the Company to repurchase their Securities, until the
Fundamental Change Purchase Date with respect to such Fundamental Change).

      Section 9.2 Conversion Procedure; Conversion Price; Fractional Shares.

            (a) Each Security shall be convertible at the office of the
Conversion Agent into fully paid and nonassessable shares (calculated to the
nearest 1/100th of a share) of Common Stock. The Security will be converted into
shares of Common Stock at the Conversion Price therefor. No payment or
adjustment shall be made in respect of dividends on the Common Stock or accrued
interest on a converted Security, except as described in Section 9.9 hereof. The
Company shall not issue any fraction of a share of Common Stock in connection
with any conversion of Securities, but instead shall, subject to Section 9.3(k)
hereof, make a cash payment (calculated to the nearest cent) equal to such
fraction multiplied by the Sale Price of the Common Stock on the last Trading
Day prior to the date of conversion. Notwithstanding the foregoing, a Security
in respect of which a Holder has delivered a Fundamental Change Purchase Notice
exercising such Holder's option to require the Company to repurchase such
Security may be converted only if such notice of exercise is withdrawn in
accordance with the Section 3.8 hereof.

            (b) Before any Holder of a Security shall be entitled to convert the
same into Common Stock, such Holder shall, in the case of Global Securities,
comply with the procedures

                                       46
<PAGE>

of the Depositary in effect at that time, and in the case of Certificated
Securities, surrender such Securities, duly endorsed to the Company or in blank,
at the office of the Conversion Agent, and shall give written notice to the
Company at said office or place that such Holder elects to convert the same and
shall state in writing therein the principal amount of Securities to be
converted and the name or names (with addresses) in which such Holder wishes the
certificate or certificates for Common Stock to be issued.

      Before any such conversion, a Holder also shall pay all funds required, if
any, relating to interest on the Securities, as provided in Section 9.9, and all
taxes or duties, if any, as provided in Section 9.8.

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

            (c) A Security shall be deemed to have been converted as of the
close of business on the date of the surrender of such Securities for conversion
and compliance with the other requirements of this Section 9.2 as provided
above, and the Person or Persons entitled to receive the Common Stock issuable
upon such conversion shall be treated for all purposes as the record Holder or
Holders of such Common Stock as of the close of business on such date.

            (d) In case any Security shall be surrendered for partial
conversion, the Company shall execute and the Trustee shall authenticate and
deliver to or upon the written order of the Holder of the Security so
surrendered, without charge to such Holder (subject to the provisions of Section
9.8 hereof), a new Security or Securities in authorized denominations in an
aggregate principal amount equal to the unconverted portion of the surrendered
Securities.

      Section 9.3 Adjustment of Conversion Price. The Conversion Price shall be
adjusted from time to time as follows:

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

                                       47
<PAGE>

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

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

      Such reduction shall become effective immediately after the opening of
business on the day following the Record Date fixed for such determination. If
any dividend or distribution of the type described in this Section 9.3(a) is
declared but not so paid or made, the Conversion Price shall again be adjusted
to the Conversion Price which would then be in effect if such dividend or
distribution had not been declared.

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

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

            (c) In case the Company shall, at any time or from time to time
while any of the Securities are outstanding, issue rights or warrants (other
than any rights or warrants referred to in Section 9.3(d)) to all or
substantially all holders of its shares of Common Stock entitling them to
subscribe for or purchase, for a period of up to 45 days, shares of Common Stock
(or securities convertible into shares of Common Stock) at a price per share (or
having a conversion price per share) less than the Sale Price on the Business
Day immediately preceding the date of the announcement of such issuance
(treating the conversion price per share of the securities convertible into
Common Stock as equal to (x) the sum of (i) the price for a unit of the security
convertible into Common Stock and (ii) any additional consideration initially
payable upon the conversion of such security into Common Stock divided by (y)
the number of shares of Common Stock initially underlying such convertible
security), then the Conversion Price shall be adjusted so that the same shall
equal the price determined by multiplying the Conversion Price in effect at the
opening of business on the date after such date of announcement by a fraction:

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

                                       48
<PAGE>

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

      Such adjustment shall become effective immediately after the opening of
business on the day following the date of announcement of such issuance. To the
extent that shares of Common Stock (or securities convertible into shares of
Common Stock) are not delivered pursuant to such rights or warrants, upon the
expiration or termination of such rights or warrants, the Conversion Price shall
be readjusted to the Conversion Price which would then be in effect had the
adjustments made upon the issuance of such rights or warrants been made on the
basis of the delivery of only the number of shares of Common Stock (or
securities convertible into shares of Common Stock) actually delivered. In the
event that such rights or warrants are not so issued, the Conversion Price shall
again be adjusted to be the Conversion Price which would then be in effect if
the date fixed for the determination of stockholders entitled to receive such
rights or warrants had not been fixed. In determining whether any rights or
warrants entitle the holders to subscribe for or purchase shares of Common Stock
at less than such Sale Price, and in determining the aggregate offering price of
such shares of Common Stock, there shall be taken into account any consideration
received for such rights or warrants, the value of such consideration if other
than cash, to be determined by the Board of Directors.

            (d) In case the Company shall, at any time or from time to time
while any of the Securities are outstanding, by dividend or otherwise,
distribute to all or substantially all holders of its shares of Common Stock
(including any such distribution made in connection with a consolidation or
merger in which the Company is the continuing corporation and the Common Stock
is not changed or exchanged), shares of Capital Stock (other than any dividends
or distributions to which Section 9.3(a) applies and distributions of Common
Stock to which Section 9.3(a) applies), evidences of its indebtedness or other
assets, including securities, but excluding (i) any rights or warrants referred
to in Section 9.3(c) and (ii) dividends or distributions of stock, securities or
other property or assets (including cash) in connection with a reclassification,
consolidation, merger, statutory share exchange, combination, sale or conveyance
to which Section 9.4 applies (such capital stock, evidence of its indebtedness,
and other assets or securities being distributed hereinafter in this Section
9.3(d) called the distributed assets), then, in each such case, subject to the
second and third succeeding paragraphs and the last paragraph of this Section
9.3(d), the Conversion Price shall be reduced so that the same shall be equal to
the price determined by multiplying the Conversion Price in effect immediately
prior to the close of business on the Record Date with respect to such
distribution by a fraction:

                  (1) the numerator of which shall be the Current Market Price
of the Common Stock, less the Fair Market Value on such date of the portion of
the distributed assets so distributed applicable to one share of Common Stock
(determined on the basis of the number of shares of Common Stock outstanding on
the record date)(determined as provided in Section 9.3(g)); and

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

                                       49
<PAGE>

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

      If the Board of Directors determines the Fair Market Value of any
distribution for purposes of this Section 9.3(d) by reference to the actual or
when issued trading market for any distributed assets comprising all or part of
such distribution, it must in doing so consider the prices in such market over
the same period (the Reference Period) used in computing the Current Market
Price pursuant to Section 9.3(g) to the extent possible, unless the Board of
Directors determines in good faith that determining the Fair Market Value during
the Reference Period would not be in the best interest of the Holders.
Notwithstanding the foregoing, in the event any such distribution consists of
shares of capital stock of, or similar equity interests in, one or more of the
Company's Subsidiaries (a "Spin-Off"), the Conversion Price shall be reduced so
that the same shall be equal to the price determined by multiplying the
Conversion Price in effect immediately prior to the close of business on the
Record Date with respect to such distribution by a fraction:

                  (1) the numerator of which shall be the Current Market Price
on such date; and

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

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

      Rights or warrants distributed by the Company to all holders of its shares
of Common Stock entitling them to subscribe for or purchase shares of the
Company's capital stock (either initially or under certain circumstances), which
rights or warrants, until the occurrence of a specified event or events
("Trigger Event"), (i) are deemed to be transferred with such shares of

                                       50
<PAGE>

Common Stock, (ii) are not exercisable and (iii) are also issued in respect of
future issuances of shares of Common Stock shall be deemed not to have been
distributed for purposes of this Section 9.3(d) (and no adjustment to the
Conversion Price under this Section 9.3(d) will be required) until the
occurrence of the earliest Trigger Event. If such right or warrant is subject to
subsequent events, upon the occurrence of which such right or warrant shall
become exercisable to purchase different distributed assets, evidences of
indebtedness or other assets, or entitle the holder to purchase a different
number or amount of the foregoing or to purchase any of the foregoing at a
different purchase price, then the occurrence of each such event shall be deemed
to be the date of issuance and record date with respect to a new right or
warrant (and a termination or expiration of the existing right or warrant
without exercise by the holder thereof). In addition, in the event of any
distribution (or deemed distribution) of rights or warrants, or any Trigger
Event or other event (of the type described in the preceding sentence) with
respect thereto, that resulted in an adjustment to the Conversion Price under
this Section 9.3(d)):

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

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

      For purposes of this Section 9.3(d) and Section 9.3(a), 9.3(b) and 9.3(c),
any dividend or distribution to which this Section 9.3(d) is applicable that
also includes (i) shares of Common Stock, (ii) a subdivision or combination of
shares of Common Stock to which Section 9.3(b) applies or (iii) rights or
warrants to subscribe for or purchase shares of Common Stock to which Section
9.3(c) applies (or any combination thereof), shall be deemed instead to be:

                  (1) a dividend or distribution of the evidences of
indebtedness, assets, shares of capital stock, rights or warrants, other than
such shares of Common Stock, such subdivision or combination or such rights or
warrants to which Section 9.3(a), 9.3(b) and 9.3(c) apply, respectively (and any
Conversion Price reduction required by this Section 9.3(d) with respect to such
dividend or distribution shall then be made), immediately followed by

                  (2) a dividend or distribution of such shares of Common Stock,
such subdivision or combination or such rights or warrants (and any further
Conversion Price reduction required by Sections 9.3(a), 9.3(b), and 9.3(d) with
respect to such dividend or distribution shall then be made), except:

                        (A) the Record Date of such dividend or distribution
shall be substituted as (i)"the date fixed for the determination of stockholders
entitled to receive such dividend or other distribution," "Record Date fixed for
such determinations" and "Record Date" within the meaning of Section 9.3(a) and
9.3(b), (ii) "the day upon which such subdivision

                                       51
<PAGE>

becomes effective" and "the day upon which such combination becomes effective"
within the meaning of Section 9.3(b), and (iii) as "the date fixed for the
determination of stockholders entitled to receive such rights or warrants," "the
Record Date fixed for the determination of the stockholders entitled to receive
such rights or warrants" and such "Record Date" within the meaning of Section
9.3(c); and

                        (B) any shares of Common Stock included in such dividend
or distribution shall not be deemed "outstanding at the close of business on the
date fixed for such determination" within the meaning of Section 9.3(a) and any
reduction or increase in the number of shares of Common Stock resulting from
such subdivision or combination shall be disregarded in connection with such
dividend or distribution.

      In the event of any distribution referred to in this Section 9.3(d) in
which (i) the value of such distribution per share of Common Stock equals or
exceeds the average of the Sale Prices of the Common Stock over the ten
consecutive Trading Day period ending on the Record Date for such distribution,
or (ii) such average of the Sale Prices of the Common Stock exceeds the Fair
Market Value of such distribution applicable to one share of Common Stock (as
determined by the Board of Directors) by less than $1.00, then, in each such
case, in lieu of an adjustment to the Conversion Price, adequate provision shall
be made so that each Holder shall have the right to receive upon conversion of a
Security, in addition to shares of Common Stock, the kind and amount of such
distribution such Holder would have received had such Holder converted such
Security immediately prior to the Record Date for determining the shareholders
entitled to receive the distribution.

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

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

                  (1) the numerator of which shall be the Current Market Price
on such record date; and

                  (2) the denominator of which shall be the Current Market Price
minus the amount distributed per ordinary share of Common Stock.

      Such adjustment shall become effective immediately after the opening of
business on the day following the Record Date fixed for the determination of the
stockholders entitled to receive such cash dividend or other distribution
consisting exclusively of cash. If any dividend or distribution of the type
described in this Section 9.3(e) is declared but not so paid or made, the
Conversion Price shall again be adjusted to the Conversion Price which would
then be in effect if such dividend or distribution had not been declared.

                                       52
<PAGE>

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

                  (1) the numerator of which shall be the number of shares of
Common Stock outstanding (including any tendered or exchanged shares) at the
Expiration Time multiplied by the Sale Price of a share of Common Stock on the
Trading Day next succeeding the Expiration Time such adjustment to become
effective immediately prior to the opening of business on the day following the
Expiration Time; and

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

      If the Company is obligated to purchase shares pursuant to any such tender
or exchange offer, but the Company is permanently prevented by applicable law
from effecting any such purchases or all such purchases are rescinded, the
Conversion Price shall again be adjusted to be the Conversion Price that would
then be in effect if such tender or exchange offer had not been made.

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

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

                  (1) the "ex" date (as hereinafter defined) for any event
(other than the issuance or distribution requiring such computation) that
requires an adjustment to the Conversion Price pursuant to Section 9.3(a), (b),
(c), (d), (e) or (f) occurs during such ten consecutive Trading Days, the Sale
Price for each Trading Day prior to the "ex" date for such other event shall be
adjusted by dividing such Sale Price by the same fraction by which the
Conversion Price is so required to be adjusted as a result of such other event;

                                       53
<PAGE>

                  (2) the "ex" date for any event (other than the issuance or
distribution requiring such computation) that requires an adjustment to the
Conversion Price pursuant to Section 9.3(a), (b), (c), (d), (e) or (f) occurs on
or after the "ex" date for the issuance or distribution requiring such
computation and prior to the day in question, the Sale Price for each Trading
Day on and after the "ex" date for such other event shall be adjusted by
dividing such Sale Price by the reciprocal of the fraction by which the
Conversion Price is so required to be adjusted as a result of such other event;
and

                  (3) the "ex" date for the issuance or distribution requiring
such computation is prior to the day in question, after taking into account any
adjustment required pursuant to clause (1) or (2) of this proviso, the Sale
Price for each Trading Day on or after such "ex" date shall be adjusted by
adding thereto the amount of any cash and the Fair Market Value (as determined
by the Board of Directors in a manner consistent with any determination of such
value for purposes of Section 9.3(d), (e) or (f)) of the evidences of
indebtedness, shares of capital stock or assets being distributed applicable to
one share of Common Stock as of the close of business on the day before such
"ex" date.

      For purposes of any computation under Section 9.3(f), if the "ex" date for
any event (other than the tender offer requiring such computation) that requires
an adjustment to the Conversion Price pursuant to Section 9.3(a), (b), (c), (d),
(e) or (f) occurs on or after the Expiration Time for the tender or exchange
offer requiring such computation and prior to the day in question, the Sale
Price for each Trading Day on and after the "ex" date for such other event shall
be adjusted by dividing such Sale Price by the reciprocal of the fraction by
which the Conversion Price is so required to be adjusted as a result of such
other event. For purposes of this paragraph, the term "ex" date, when used:

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

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

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

      Notwithstanding the foregoing, whenever successive adjustments to the
Conversion Price are called for pursuant to this Section 9.3, such adjustments
shall be made to the Current Market Price as may be necessary or appropriate to
effectuate the intent of this Section 9.3 and to avoid unjust or inequitable
results as determined in good faith by the Board of Directors.

                                       54
<PAGE>

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

      "Record Date" shall mean, with respect to any dividend, distribution or
other transaction or event in which the holders of shares of Common Stock have
the right to receive any cash, securities or other property or in which the
shares of Common Stock (or other applicable security) is exchanged for or
converted into any combination of cash, securities or other property, the date
fixed for determination of stockholders entitled to receive such cash,
securities or other property (whether such date is fixed by the Board of
Directors or by statute, contract or otherwise).

            (h) The Company shall be entitled to make such additional reductions
in the Conversion Price, in addition to those required by Section 9.3(a), (b),
(c), (d), (e) or (f), as shall be necessary in order that any dividend or
distribution of Common Stock, any subdivision, reclassification or combination
of shares of Common Stock or any issuance of rights or warrants referred to
above shall not be taxable to the holders of Common Stock for United States
Federal income tax purposes.

            (i) To the extent permitted by applicable law and Section 8.1(e),
the Company may, from time to time, reduce the Conversion Price by any amount
for any period of time, if such period is at least 20 days and the reduction is
irrevocable during the period. Whenever the Conversion Price is reduced pursuant
to the preceding sentence, the Company shall mail to the Trustee and each Holder
at the address of such Holder as it appears in the register of the Securities
maintained by the Registrar, at least 15 days prior to the date the reduced
Conversion Price takes effect, a notice of the reduction stating the reduced
Conversion Price and the period during which it will be in effect.

            (j) In any case in which this Section 9.3 shall require that any
adjustment be made effective as of or retroactively immediately following a
Record Date, the Company may elect to defer (but only for five Trading Days
following the filing of the statement referred to in Section 9.5) issuing to the
Holder of any Securities converted after such Record Date the shares of Common
Stock issuable upon such conversion over and above the shares of Common Stock
issuable upon such conversion on the basis of the Conversion Price prior to
adjustment; provided, however, that the Company shall deliver to such Holder a
due bill or other appropriate instrument evidencing such Holder's right to
receive such additional shares upon the occurrence of the event requiring such
adjustment.

            (k) All calculations under this Section 9.3 shall be made to the
nearest cent or one-ten-thousandth of a share, with one-half cent and 0.00005 of
a share, respectively, being rounded upward.

            (l) In the event that at any time, as a result of an adjustment made
pursuant to this Section 9.3, the Holder of any Securities thereafter
surrendered for conversion shall become entitled to receive any shares of stock
of the Company other than shares of Common Stock into which the Securities
originally were convertible, the Conversion Price of such other shares so
receivable upon conversion of any such Security shall be subject to adjustment
from time to time

                                       55
<PAGE>

in a manner and on terms as nearly equivalent as practicable to the provisions
with respect to Common Stock contained in subparagraphs (a) through (k) of this
Section 9.3, and the provision of Sections 9.1, 9.2 and 9.4 through 9.9 with
respect to the Common Stock shall apply on like or similar terms to any such
other shares and the determination of the Board of Directors as to any such
adjustment shall be conclusive.

            (m) No adjustment shall be made (i) pursuant to Section 9.3(i) if
the effect thereof would be to reduce the Conversion Price below $7.00, or (ii)
pursuant to any provision of this Section 9.3 (a) if the Holders of the
Securities may participate in the transaction that otherwise would give rise to
an adjustment pursuant to this Section 9.3 or (b) if the consent of the holders
of the Common Stock would be required for the issuance of, or the Company's
agreement to issue, the Common Stock at the adjusted Conversion Price pursuant
to the rules of The Nasdaq Stock Market, Inc. or any exchange or other market on
which the Common Stock is then listed or traded and the Company has not obtained
such consent in compliance with the applicable rules.

      Section 9.4 Consolidation or Merger of the Company. If any of the
following events occurs, namely:

               (1) any reclassification or change of the outstanding Common
Stock (other than a change in par value, or from par value to no par value, or
from no par value to par value, or as a result of a subdivision or combination)
as a result of which holders of Common Stock shall be entitled to receive stock,
securities or other property or assets (including cash) with respect to or in
exchange for such Common Stock;

               (2) any merger, consolidation, statutory share exchange or
combination of the Company with another corporation as a result of which holders
of Common Stock shall be entitled to receive stock, securities or other property
or assets (including cash) with respect to or in exchange for such Common Stock;
or

               (3) any sale or conveyance of the properties and assets of the
Company as, or substantially as, an entirety to any other corporation as a
result of which holders of Common Stock shall be entitled to receive stock,
securities or other property or assets (including cash) with respect to or in
exchange for such Common Stock;

the Company or the successor or purchasing corporation, as the case may be,
shall execute with the Trustee a supplemental indenture (which shall comply with
the Trust Indenture Act as in force at the date of execution of such
supplemental indenture, if such supplemental indenture is then required to so
comply) providing that such Securities shall be convertible into the kind and
amount of shares of stock and other securities or property or assets (including
cash) which such Holder would have been entitled to receive upon such
reclassification, change, merger, consolidation, statutory share exchange,
combination, sale or conveyance had such Securities been converted into Common
Stock immediately prior to such reclassification, change, merger, consolidation,
statutory share exchange, combination, sale or conveyance assuming such holder
of Common Stock did not exercise its rights of election, if any, as to the kind
or amount of securities, cash or other property receivable upon such merger,
consolidation, statutory share exchange, sale or conveyance (provided, that if
the kind or amount of securities, cash or other

                                       56
<PAGE>

property receivable upon such merger, consolidation, statutory share exchange,
sale or conveyance is not the same for each share of Common Stock in respect of
which such rights of election shall not have been exercised (Non-Electing
Share), then for the purposes of this Section 9.4, the kind and amount of
securities, cash or other property receivable upon such merger, consolidation,
statutory share exchange, sale or conveyance for each Non-Electing Share shall
be deemed to be the kind and amount so receivable per share by a plurality of
the Non-Electing Shares). Such supplemental indenture shall provide for
adjustments which shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Article IX. If, in the case of any such
reclassification, change, merger, consolidation, statutory share exchange,
combination, sale or conveyance, the stock or other securities and assets
receivable thereupon by a holder of Common Stock includes shares of stock or
other securities and assets of a corporation other than the successor or
purchasing corporation, as the case may be, in such reclassification, change,
merger, consolidation, statutory share exchange, combination, sale or
conveyance, then such supplemental indenture shall also be executed by such
other corporation and shall contain such additional provisions to protect the
interests of the Holders of the Securities as the Board of Directors shall
reasonably consider necessary by reason of the foregoing, including to the
extent practicable the provisions providing for the conversion rights set forth
in this Article IX.

      The Company shall cause notice of the execution of such supplemental
indenture to be mailed to each Holder, at the address of such Holder as it
appears on the register of the Securities maintained by the Registrar, within 20
days after execution thereof. Failure to deliver such notice shall not affect
the legality or validity of such supplemental indenture.

      The above provisions of this Section 9.4 shall similarly apply to
successive reclassifications, mergers, consolidations, statutory share
exchanges, combinations, sales and conveyances.

      If this Section 9.4 applies to any event or occurrence, Section 9.3 shall
not apply. Notwithstanding this Section 9.4, if a Public Acquirer Change of
Control occurs and the Company elects to adjust the Conversion Price and its
conversion obligation pursuant to Section 9.12, the provisions of Section 9.12
shall apply to the conversion instead of this Section 9.4.

      Any Additional Common Stock which a Holder is entitled to receive upon
conversion pursuant to Section 9.1(b), if applicable, shall not be payable in
shares of Common Stock, but will represent a right to receive the aggregate
amount of cash, securities or other property into which the Additional Common
Stock would convert as a result of such recapitalization, consolidation, merger,
share transfer, acquisition or share exchange.

      Section 9.5 Notice of Adjustment. Whenever an adjustment in the Conversion
Price with respect to the Securities is required:

               (1) the Company shall forthwith place on file with the Trustee
and any Conversion Agent for such securities a certificate of the Treasurer of
the Company, stating the adjusted Conversion Price determined as provided herein
and setting forth in reasonable detail such facts as shall be necessary to show
the reason for and the manner of computing such adjustment; and

                                       57
<PAGE>

               (2) a notice stating that the Conversion Price has been adjusted
and setting forth the adjusted Conversion Price shall forthwith be given by the
Company or, at the Company's request, by the Trustee in the name and at the
expense of the Company, to each Holder in the manner provided in Section 11.2.
Any notice so given shall be conclusively presumed to have been duly given,
whether or not the Holder receives such notice.

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

      Section 9.6 Notice in Certain Events. In case:

               (1) of a consolidation or merger to which the Company is a party
and for which approval of any stockholders of the Company is required, or of the
sale or conveyance to another Person or entity or group of Persons or entities
acting in concert as a partnership, limited partnership, syndicate or other
group (within the meaning of Rule 13d-3 under the Exchange Act) of all or
substantially all of the property and assets of the Company; or

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

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

then, in each case, the Company shall cause to be filed with the Trustee and the
Conversion Agent, and shall cause to be given, to the Holders of the Securities
in the manner provided in Section 11.2, at least 15 days prior to the applicable
date hereinafter specified, a notice stating (x) the date on which a record is
to be taken for the purpose of any distribution or grant of rights or warrants
triggering an adjustment to the Conversion Price pursuant to this Article IX,
or, if a record is not to be taken, the date as of which the holders of record
of Common Stock entitled to such distribution, rights or warrants are to be
determined, or (y) the date on which any reclassification, consolidation,
merger, sale, conveyance, dissolution, liquidation or winding up triggering an
adjustment to the Conversion Price pursuant to this Article IX is expected to
become effective, and the date as of which it is expected that holders of Common
Stock of record shall be entitled to exchange their Common Stock for securities
or other property deliverable upon such reclassification, consolidation, merger
sale, conveyance, dissolution, liquidation or winding up.

      Failure to give such notice or any defect therein shall not affect the
legality or validity of the proceedings described in clause (1), (2) or (3) of
this Section 9.6.

      Section 9.7 Company To Reserve Stock: Registration; Listing.

            (a) The Company shall, in accordance with the laws of the State of
Delaware, at all times reserve and keep available, free from preemptive rights,
out of its authorized but unissued shares of Common Stock, for the purpose of
effecting the conversion of the Securities, such number of its duly authorized
shares of Common Stock as shall from time to time be

                                       58
<PAGE>

sufficient to effect the conversion of all Securities then outstanding into such
Common Stock at any time (assuming that, at the time of the computation of such
number of shares or securities, all such Securities would be held by a single
Holder); provided, however, that nothing contained herein shall preclude the
Company from satisfying its obligations in respect of the conversion of the
Securities by delivery of purchased shares of Common Stock which are then held
in the treasury of the Company. The Company covenants that all shares of Common
Stock which may be issued upon conversion of Securities will upon issue be fully
paid and nonassessable and free from all liens and charges and, except as
provided in Section 9.8, taxes with respect to the issue thereof.

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

      Section 9.8 Taxes on Conversion. The issue of stock certificates on
conversion of Securities shall be made without charge to the converting Holder
for any documentary, stamp or similar issue or transfer taxes in respect of the
issue thereof, and the Company shall pay any and all documentary, stamp or
similar issue or transfer taxes that may be payable in respect of the issue or
delivery of shares of Common Stock on conversion of Securities pursuant hereto.
The Company shall not, however, be required to pay any such tax which may be
payable in respect of any transfer involved in the issue or delivery of shares
of Common Stock or the portion, if any, of the Securities which are not so
converted in a name other than that in which the Securities so converted were
registered, and no such issue or delivery shall be made unless and until the
Person requesting such issue has paid to the Company the amount of such tax or
has established to the satisfaction of the Company that such tax has been paid.

      Section 9.9 Conversion After Record Date. Except as provided below, if any
Securities are surrendered for conversion on any day other than an Interest
Payment Date, the Holder of such Securities shall not be entitled to receive any
interest that has accrued on such Securities since the prior Interest Payment
Date. By delivery to the Holder of the number of shares of Common Stock or other
consideration issuable upon conversion in accordance with this Article IX, any
accrued and unpaid interest on such Securities will be deemed to have been paid
in full.

      If any Securities are surrendered for conversion subsequent to the Record
Date preceding an Interest Payment Date but on or prior to such Interest Payment
Date, the Holder of such Securities at the close of business on such Record Date
shall receive the interest payable on such Securities on such Interest Payment
Date notwithstanding the conversion thereof. Securities surrendered for
conversion during the period from the close of business on any Record Date

                                       59
<PAGE>

preceding any Interest Payment Date to the opening of business on such Interest
Payment Date shall (except in the case of Securities which have been called for
redemption on a Redemption Date which is after such Record Date and on or prior
to the third Business Day after such Interest Payment Date) be accompanied by
payment by Holders, for the account of the Company, in New York Clearing House
funds or other funds of an amount equal to the interest payable on such Interest
Payment Date on the Securities being surrendered for conversion. Except as
provided in Section 3.1 or this Section 9.9, no adjustments in respect of
payments of interest on Securities surrendered for conversion or any dividends
or distributions or interest on the Common Stock issued upon conversion shall be
made upon the conversion of any Securities.

      Section 9.10 Company Determination Final. Any determination that the
Company or the Board of Directors must make pursuant to this Article IX shall be
conclusive if made in good faith and in accordance with the provisions of this
Article, absent manifest error, and set forth in a Board Resolution.

      Section 9.11 Responsibility of Trustee for Conversion Provisions. The
Trustee has no duty to determine when an adjustment under this Article IX should
be made, how it should be made or what it should be. The Trustee makes no
representation as to the validity or value of any securities or assets issued
upon conversion of Securities. The Trustee shall not be responsible for any
failure of the Company to comply with this Article IX. Each Conversion Agent
other than the Company shall have the same protection under this Section 9.11 as
the Trustee.

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

      Section 9.12 Conversion After a Public Acquirer Change of Control (a) In
the event of a Public Acquirer Change of Control, the Company may, in lieu of
issuing the Additional Common Stock pursuant to Section 9.1(b), elect to adjust
the Conversion Price and the related conversion obligation such that from and
after the Effective Date of such Public Acquirer Change of Control, Holders of
the Security will be entitled to convert their Security, in accordance with
Section 9.2 hereof, into a number of shares of Public Acquirer Common Stock by
adjusting the Conversion Price in effect immediately before the Public Acquirer
Change of Control by multiplying it by a fraction:

            (1) the numerator of which will be the average of the Sale Prices of
      the Public Acquirer Common Stock for the five consecutive Trading Days
      commencing on the Trading Day next succeeding the effective date of such
      Public Acquirer Change of Control, and

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

                                       60
<PAGE>

      average of the Sale Price of the Common Stock for the five consecutive
      Trading Days prior to but excluding the Effective Date of such Public
      Acquirer Change of Control.

      (b) The Company will notify Holders of its election by providing notice as
set forth in Section 9.1(c).

                                   ARTICLE X.
                     SATISFACTION AND DISCHARGE OF INDENTURE

      Section 10.1 Satisfaction and Discharge of Indenture. This Indenture shall
cease to be of further effect (except as to any surviving rights of conversion,
registration of transfer or exchange of Securities herein expressly provided for
and except as further provided below), and the Trustee, on demand of and at the
expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when

               (1) either

                  (A) all Securities theretofore authenticated and delivered
(other than (i) Securities which have been destroyed, lost or stolen and which
have been replaced or paid as provided in Section 2.7 and (ii) Securities for
whose payment money has theretofore been deposited in trust and thereafter
repaid to the Company as provided in Section 10.3) have been delivered to the
Trustee for cancellation; or

                  (B) all such Securities not theretofore delivered to the
Trustee for cancellation have become due and payable and the Company has
irrevocably deposited or caused to be irrevocably deposited cash with the
Trustee or a Paying Agent (other than the Company or any of its Affiliates) as
trust funds in trust for the purpose of and in an amount sufficient to pay and
discharge the entire indebtedness on such Securities not theretofore delivered
to the Trustee for cancellation, for principal and interest (including
Additional Amounts, if any) to the date of such deposit (in the case of
Securities which have become due and payable);

               (2) no Default or Event of Default has occurred and is continuing
on the date of such deposit and the deposit will not result in a breach or
violation of, or constitute a default under, any other instrument to which the
Company is a party or by which the Company is bound;

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

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

      Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 7.7 shall survive and,
if money shall have been deposited with the Trustee pursuant to subclause (B) of
clause (1) of this Section, the provisions of

                                       61
<PAGE>

Sections 2.3 through 2.7, Article III, Article IX, the last sentence of Section
4.2 and this Article X, shall survive until the Securities have been paid in
full.

      Section 10.2 Application of Trust Money. Subject to the provisions of
Article X, the Trustee or a Paying Agent shall hold in trust, for the benefit of
the Holders, all money deposited with it pursuant to Section 10.1 and shall
apply the deposited money in accordance with this Indenture and the Securities
to the payment of the principal of and interest on the Securities.

      Section 10.3 Repayment to Company. The Trustee and each Paying Agent shall
promptly pay to the Company upon request any excess money (i) deposited with
them pursuant to Section 10.1 and (ii) held by them at any time.

      The Trustee and each Paying Agent shall pay to the Company upon request
any money held by them for the payment of principal or interest that remains
unclaimed for two years after a right to such money has matured; provided,
however, that the Trustee or such Paying Agent, before being required to make
any such payment, may at the expense of the Company cause to be mailed to each
Holder entitled to such money notice that such money remains unclaimed and that
after a date specified therein, which shall be at least 30 days from the date of
such mailing, any unclaimed balance of such money then remaining will be repaid
to the Company. After payment to the Company, Holders entitled to money must
look to the Company for payment as general creditors unless an applicable
abandoned property law designates another person.

      Section 10.4 Reinstatement. If the Trustee or any Paying Agent is unable
to apply any money in accordance with Section 10.2 by reason of any legal
proceeding or by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, then
the Company's obligations under this Indenture and the Securities shall be
revived and reinstated as though no deposit had occurred pursuant to Section
10.1 until such time as the Trustee or such Paying Agent is permitted to apply
all such money in accordance with Section 10.2; provided, however, that if the
Company has made any payment of the principal of or interest on any Securities
because of the reinstatement of its obligations, the Company shall be subrogated
to the rights of the Holders of such Securities to receive any such payment from
the money held by the Trustee or such Paying Agent.

                                   ARTICLE XI.
                                  MISCELLANEOUS

      Section 11.1 Trust Indenture Act Controls. If any provision of this
Indenture limits, qualifies, or conflicts with another provision which is
required to be included in this Indenture by the TIA, the required provision
shall control.

      Section 11.2 Notices. Any request, demand, authorization, notice, waiver,
consent or communication shall be in writing and delivered in person or mailed
by first-class mail, postage prepaid, addressed as follows or transmitted by
facsimile transmission (confirmed by guaranteed overnight courier) to the
following facsimile numbers:

                                       62
<PAGE>

if to the Company:

         Cell Genesys, Inc.
         500 Forbes Boulevard
         South San Francisco, CA 94080
         Attention:  Corporate Counsel
         Facsimile No.:  (650) 266-3010

With a copy to:

         Wilson Sonsini Goodrich & Rosati
         650 Page Mill Road
         Palo Alto, CA  94304
         Attention:  Herbert Fockler
         Facsimile No.:  (650) 493-6811

if to the Trustee:

         U.S. Bank National Association
         633 West Fifth Street, 24th Floor
         LM-CA-T24T
         Los Angeles, CA 90071
         Attention: Corporate Trust Services
         (Cell Genesys, Inc. Notes due 2011)
         Facsimile No.: (213) 615-6197

      The Company or the Trustee by notice given to the other in the manner
provided above may designate additional or different addresses for subsequent
notices or communications.

      Any notice or communication given to a Securityholder shall be mailed to
the Securityholder, by first-class mail, postage prepaid, at the
Securityholder's address as it appears on the registration books of the
Registrar and shall be sufficiently given if so mailed within the time
prescribed.

      Failure to mail a notice or communication to a Securityholder or any
defect in it shall not affect its sufficiency with respect to other
Securityholders. If a notice or communication is mailed in the manner provided
above, it is duly given, whether or not received by the addressee; provided that
all notices to the Trustee shall be deemed effective upon actual receipt
thereof.

      If the Company mails a notice or communication to the Securityholders, it
shall mail a copy to the Trustee and each Registrar, Paying Agent, Conversion
Agent or co-registrar.

      Section 11.3 Communication by Holders with Other Holders. Securityholders
may communicate pursuant to TIA Section 312(b) with other Securityholders with
respect to their rights under this Indenture or the Securities. The Company, the
Trustee, the Registrar, the

                                       63
<PAGE>

Paying Agent, the Conversion Agent and anyone else shall have the protection of
TIA Section 312(c).

      Section 11.4 Certificate and Opinion as to Conditions Precedent. Upon any
request or application by the Company to the Trustee to take any action under
this Indenture, the Company shall furnish to the Trustee:

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

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

      Section 11.5 Statements Required in Certificate or Opinion. Each Officers'
Certificate or Opinion of Counsel with respect to compliance with a covenant or
condition provided for in this Indenture shall include:

               (1) a statement that each Person making such Officers'
Certificate or Opinion of Counsel has read such covenant or condition;

               (2) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in
such Officers' Certificate or Opinion of Counsel are based;

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

               (4) a statement that, in the opinion of such Person, such
covenant or condition has been complied with.

      Section 11.6 Separability Clause. In case any provision in this Indenture
or in the Securities shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.

      Section 11.7 Rules by Trustee, Paying Agent, Conversion Agent and
Registrar. The Trustee may make reasonable rules for action by or a meeting of
Securityholders. The Registrar, the Conversion Agent and the Paying Agent may
make reasonable rules for their functions.

      Section 11.8 Legal Holidays. A "Legal Holiday" is any day other than a
Business Day. If any specified date (including a date for giving notice) is a
Legal Holiday, the action shall be taken on the next succeeding day that is not
a Legal Holiday, and, if the action to be taken on such date is a payment in
respect of the Securities, no interest, if any, shall accrue for the intervening
period.

                                       64
<PAGE>

      Section 11.9 Governing Law. THIS INDENTURE SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK.

      Section 11.10 Waiver of Jury Trial. EACH OF THE COMPANY AND THE TRUSTEE
HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THIS INDENTURE, THE SECURITIES OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

      Section 11.11 No Recourse Against Others. A director, officer, employee or
stockholder, as such, of the Company shall not have any liability for any
obligations of the Company under the Securities or this Indenture or for any
claim based on, in respect of or by reason of such obligations or their
creation. By accepting a Security, each Securityholder shall waive and release
all such liability. The waiver and release shall be part of the consideration
for the issue of the Securities.

      Section 11.12 Successors. All agreements of the Company in this Indenture
and the Securities shall bind its successor. All agreements of the Trustee in
this Indenture shall bind its successor.

      Section 11.13 Multiple Originals. The parties may sign any number of
copies of this Indenture. Each signed copy shall be an original, but all of them
together represent the same agreement. One signed copy is enough to prove this
Indenture.

      Section 11.14 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.

      IN WITNESS WHEREOF, the undersigned, being duly authorized, have executed
this Indenture on behalf of the respective parties hereto as of the date first
above written.

                                             CELL GENESYS, INC.

                                             By:  /s/ Matthew J. Pfeffer
                                                  ------------------------------
                                                  Name:  Matthew J. Pfeffer
                                                  Title: Vice President and
                                                         Chief Financial Officer

                                       65
<PAGE>

                                        U.S. BANK NATIONAL ASSOCIATION
                                        As Trustee

                                       By:  /s/ Paula Oswald
                                            -------------------------------
                                            Name: Paula Oswald
                                            Title: Vice President

                                       66
<PAGE>

                                    EXHIBIT A

                        [FORM OF FACE OF GLOBAL SECURITY]

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

      TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS TO
NOMINEES OF THE DEPOSITORY TRUST COMPANY, OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN
ARTICLE TWO OF THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

      THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OR OTHER
JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY
BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY,
BY ITS ACCEPTANCE HEREOF:

      (1)   REPRESENTS THAT IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED
            IN RULE 144A UNDER THE SECURITIES ACT ("RULE 144A"));

      (2)   AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR
            WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE
            TRANSFER SUCH SECURITY OR ANY COMMON STOCK ISSUABLE UPON CONVERSION
            OF SUCH SECURITY, PRIOR TO THE EXPIRATION OF THE HOLDING PERIOD
            APPLICABLE TO SALES OF THIS SECURITY UNDER RULE 144(k) UNDER THE
            SECURITIES ACT (OR ANY SUCCESSOR PROVISION), ONLY (A) TO THE ISSUER,
            (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED
            EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH CONTINUES TO BE
            EFFECTIVE AT THE TIME OF SUCH TRANSFER), (C) FOR SO LONG AS THE
            SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, IN
            COMPLIANCE WITH RULE 144A TO A

                                      A-1
<PAGE>

            PERSON IT REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER
            THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
            INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
            BEING MADE IN RELIANCE ON RULE 144A OR (D) PURSUANT TO ANOTHER
            AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
            SECURITIES ACT, SUBJECT TO THE ISSUER'S AND THE TRUSTEE'S RIGHT
            PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (D) TO
            REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR
            OTHER INFORMATION SATISFACTORY TO EACH OF THEM; AND

      (3)   AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS SECURITY IS
            TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.
            THIS LEGEND WILL BE REMOVED UPON THE EARLIER OF THE TRANSFER OF THIS
            SECURITY PURSUANT TO CLAUSE 2(B) ABOVE OR UPON ANY TRANSFER OF THIS
            SECURITY UNDER RULE 144 UNDER THE SECURITIES ACT (OR ANY SUCCESSOR
            PROVISION).

      The foregoing legend may be removed from this Security on satisfaction of
the conditions specified in the Indenture.

                                      A-2
<PAGE>

                               CELL GENESYS, INC.

                    3.125% CONVERTIBLE SENIOR NOTES DUE 2011

No.:                                    CUSIP:
Issue Date:                             Principal Amount:  $

      Cell Genesys, Inc., a Delaware corporation, promises to pay to __________
or registered assigns, the principal amount of dollars ______________________
($_______________) on November 1, 2011 or such greater or lesser amount as is
indicated on the Schedule of Increases and Decreases of Global Security attached
to this Security.

      Interest Payment Dates: November 1 and May 1, commencing May 1, 2005.

      Record Dates: October 15 and April 15.

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

                                      A-3
<PAGE>

      IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.

Dated:  ____________, 200__

                                        CELL GENESYS, INC.

                                        By: ___________________________________
                                            Title:

TRUSTEE'S CERTIFICATE OF AUTHENTICATION

U.S. BANK NATIONAL ASSOCIATION,
as Trustee, certifies that this is one of the Securities
referred to in the within mentioned Indenture.

By: _____________________________________
    Authorized Signatory

Dated:  ____________, 200__

                                      A-4
<PAGE>

                      [FORM OF REVERSE OF GLOBAL SECURITY]

                    3.125% CONVERTIBLE SENIOR NOTES DUE 2011

      This Security is one of a duly authorized issue of the 3.125% Convertible
Senior Notes due 2011 (the "Securities") of Cell Genesys, Inc., a Delaware
corporation (including any successor corporation under the Indenture hereinafter
referred to, the "Company"), issued under an Indenture, dated as of October 20,
2004 (the "Indenture"), between the Company and U.S. Bank National Association,
as trustee (the "Trustee"). The terms of the Security include those stated in
the Indenture, those made part of the Indenture by reference to the Trust
Indenture Act of 1939, as amended ("TIA"), and those set forth in this Security.
This Security is subject to all such terms, and Holders are referred to the
Indenture and the TIA for a statement of all such terms. To the extent permitted
by applicable law, in the event of any inconsistency between the terms of this
Security and the terms of the Indenture, the terms of the Indenture shall
control. Capitalized terms used but not defined herein have the meanings
assigned to them in the Indenture referred to below unless otherwise indicated.

1.    Interest.

      The Company promises to pay interest on the principal amount of the
Securities at the interest rate of 3.125% (the "Interest Rate") from the date of
issuance until repayment in full at November 1, 2011, or until an earlier
conversion, redemption or repurchase. The Company will pay interest on this
Security semi-annually in arrears on May 1 and November 1 of each year (each, an
"interest payment date"), commencing May 1, 2005.

      The Securities shall bear interest from October 20, 2004 until the
principal amount thereof is paid or made available for payment, or until such
date on which the Securities are converted, redeemed or purchased as provided
herein at a rate of 3.125% per annum.

      Interest on the Securities shall be computed (i) for any full semi-annual
period for which a particular Interest Rate is applicable, on the basis of a
360-day year of twelve 30-day months and (ii) for any period for which a
particular Interest Rate is applicable for less than a full semiannual period
for which interest is calculated, on the basis of a 30-day month and, for such
periods of less than a month, the actual number of days elapsed over a 30-day
month.

      If this Security is redeemed or repurchased by the Company on a date that
is after the record date and on or prior to the corresponding interest payment
date, interest and Additional Amounts, if any, accrued and unpaid hereon to but
not including the applicable Redemption Date or Fundamental Change Purchase
Date, as the case may be, will be paid to the same Holder to whom the Company
pays the principal of this Security.

      Interest on Securities converted after a record date but prior to the
corresponding interest payment date will be paid to the Holder of the Securities
on the record date but, upon conversion, the Holder must pay the Company the
interest and Additional Amounts, if any, which have accrued and will be paid on
such interest payment date; provided, that no such payment need be made with
respect to Securities which will be redeemed by the Company after a record date
and on or prior to the third Business Day after the corresponding interest
payment date.

                                      A-5
<PAGE>

      If the principal amount hereof or any portion of such principal amount or
any interest, including Additional Amounts, if any, on any Security is not paid
when due (whether upon acceleration pursuant to Section 6.2 of the Indenture,
upon the date set for payment of the Redemption Price pursuant to Section 5
hereof or the Fundamental Change Purchase Price pursuant to Section 6 hereof or
upon the Stated Maturity of this Security), then in each such case the overdue
amount shall, to the extent permitted by law, bear interest at the Interest
Rate, compounded semi-annually, which interest shall accrue from the date on
which such overdue amount was originally due until the date on which payment of
such amount, including interest thereon, has been made or duly provided for. All
such interest shall be payable on demand.

2.    Method of Payment.

      Except as provided below, interest will be paid (i) on the Global
Securities to The Depository Trust Company ("DTC") or its nominee in immediately
available funds, (ii) on any definitive Securities having an aggregate principal
amount of $2,000,000 or less, by check mailed to the Holders of such Securities,
and (iii) on any definitive Securities having an aggregate principal amount of
more than $2,000,000, by wire transfer in immediately available funds at the
election of the Holders of such Securities.

      At Stated Maturity, the Company will pay interest on definitive Securities
at the Company's office or agency in New York City, which initially will be the
corporate trust office of U.S. Bank Trust National Association, an Affiliate of
the Trustee in New York City.

      Principal on Global Securities will be paid to DTC or its nominee in
immediately available funds. Principal on definitive Securities will be payable,
upon Stated Maturity or when due, at the office or agency of the Company in New
York City, maintained for such purpose, initially the corporate trust office of
U.S. Bank Trust National Association, an Affiliate of the Trustee in New York
City.

      Subject to the terms and conditions of the Indenture, the Company will
make payments in cash in respect of Redemption Prices, Fundamental Change
Purchase Prices and at Stated Maturity to Holders who surrender Securities to a
Paying Agent to collect such payments in respect of the Securities. The Company
will pay cash amounts in money of the United States that at the time of payment
is legal tender for payment of public and private debts. However, the Company
may make such cash payments by check payable in such money.

3.    Paying Agent, Conversion Agent and Registrar.

      Initially, U.S. Bank National Association will act as Paying Agent,
Conversion Agent and Registrar. The Company may appoint and change any Paying
Agent, Conversion Agent or Registrar without notice, other than notice to the
Trustee; provided that the Company will maintain at least one Paying Agent in
the State of New York, City of New York, Borough of Manhattan, which shall
initially be an office or agency of the Trustee. The Company or any of its
Subsidiaries or any of their Affiliates may act as Paying Agent, Conversion
Agent or Registrar.

                                      A-6
<PAGE>

4.    Indenture.

      The Securities are senior unsecured obligations of the Company limited to
$110,000,000 aggregate principal amount (or such greater amount necessary to
reflect the exercise by the Initial Purchasers of their option to purchase
additional Securities in compliance with the Purchase Agreement, but not in
excess of $145,000,000). The Indenture does not limit other indebtedness of the
Company, secured or unsecured.

5.    Redemption at the Option of the Company.

      No sinking fund is provided for the Securities. The Securities are not
redeemable by the Company prior to November 1, 2009. If the Sale Price of the
Common Stock has exceeded 150% of the Conversion Price then in effect for at
least 20 Trading Days in any period of 30 consecutive Trading Days ending on the
Trading Day prior to the mailing of the Redemption Notice, the Securities will
be redeemable for cash at the option of the Company, in whole or in part, at any
time or from time to time, on or after November 1, 2009 upon not less than 20
nor more than 60 days' notice by mail for a redemption price equal to the
principal amount of those Securities plus accrued and unpaid interest, including
Additional Amounts, if any, on those Securities (including Securities which are
converted into Common Stock under certain circumstances specified in the
Indenture) up to the Redemption Date (the "Redemption Price").

6.    Purchase By the Company at the Option of the Holder.

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

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

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

7.    Notice of Redemption.

      Notice of redemption pursuant to Section 5 of this Security will be mailed
at least 20 days but not more than 60 days before the Redemption Date to each
Holder of Securities to be

                                      A-7
<PAGE>

redeemed at the Holder's registered address. If money sufficient to pay the
Redemption Price of all Securities (or portions thereof) to be redeemed on the
Redemption Date is deposited with the Paying Agent prior to or on the Redemption
Date, immediately after such Redemption Date interest ceases to accrue on such
Securities or portions thereof. Securities in denominations larger than $1,000
of principal amount may be redeemed in part but only in integral multiples of
$1,000 of principal amount.

8.    Conversion.

      Subject to and in compliance with the provisions of the Indenture, a
Holder is entitled, at such Holder's option, to convert the Holder's Security
(or any portion of the principal amount thereof that is $1,000 or an integral
multiple of $1,000), into fully paid and nonassessable shares of Common Stock at
the Conversion Price in effect at the time of conversion.

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

      The initial Conversion Price is $9.10, subject to adjustment in certain
events described in the Indenture. No fractional shares of Common Stock shall be
issued upon conversion of any Security. A Holder that surrenders Securities for
conversion will receive cash or a check in lieu of any fractional share of
Common Stock.

      To surrender a Security for conversion, a Holder must (i) complete and
manually sign the conversion notice below (or complete and manually sign a
facsimile of such notice) and deliver such notice to the Conversion Agent, (ii)
surrender the Security to the Conversion Agent, (iii) furnish appropriate
endorsements and transfer documents and (iv) pay any transfer or similar tax, if
required by the Indenture.

      If the Company (i) is a party to a consolidation, merger or binding share
exchange, (ii) reclassifies the Common Stock or (iii) conveys, transfers or
leases its properties and assets substantially as an entirety to any Person, the
right to convert a Security into shares of Common Stock may be changed into a
right to convert it into securities, cash or other assets of the Company or such
other Person, in each case in accordance with the Indenture.

9.    Denominations; Transfer; Exchange.

      The Securities are in fully registered form, without coupons, in
denominations of $1,000 of principal amount and integral multiples of $1,000. A
Holder may transfer or exchange Securities in accordance with the Indenture. The
Registrar may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents and to pay any taxes and fees required by
law or permitted by the Indenture. The Registrar need not transfer or exchange
any Securities selected for redemption (except, in the case of a Security to be
redeemed in part, the portion of the Security not to be redeemed) or any
Securities in respect of which a Change of Control Purchase Notice has been
given and not withdrawn (except, in the case of a Security to be purchased in
part, the portion of the Security not to be purchased) or any Securities for a
period of 15 days before the mailing of a notice of redemption of Securities to
be redeemed.

                                      A-8
<PAGE>

10.   Persons Deemed Owners.

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

11.   Unclaimed Money or Securities.

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

12.   Amendment; Waiver.

      Subject to certain exceptions set forth in the Indenture, (i) the
Indenture or the Securities may be amended with the written consent of the
Holders of at least a majority in aggregate principal amount of the outstanding
Securities and (ii) certain Defaults may be waived with the written consent of
the Holders of a majority in aggregate principal amount of the outstanding
Securities. The Indenture and the Securities may also be amended by the Company
and the Trustee, without the consent of any Holder, in certain circumstances set
forth in the Indenture; provided, that certain provisions of the Indenture and
the Securities may not be amended without the consent of each affected Holder.

13.   Defaults and Remedies.

      If any Event of Default with respect to Securities shall occur and be
continuing, the principal of all the Securities may be declared due and payable
in the manner and with the effect provided in the Indenture.

14.   Trustee Dealings with the Company.

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

15.   No Recourse Against Others.

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

                                      A-9
<PAGE>

16.   Treatment of Securities.

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

17.   Authentication.

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

18.   Abbreviations.

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

19.   GOVERNING LAW.

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

      The Company will furnish to any Securityholder upon written request and
without charge a copy of the Indenture which has in it the text of this
Security. Requests may be made to:

                  Cell Genesys, Inc.
                  500 Forbes Boulevard
                  South San Francisco, CA 94080
                  Attention:  Chief Financial Officer
                  Facsimile No.:  (650) 266-3010

20.   Registration Rights.

      The Holders of any Restricted Security are entitled to the benefits of the
Registration Rights Agreement, dated as of October 20, 2004, among the Company,
and J. P. Morgan Securities Inc. and Lehman Brothers Inc., as representatives of
the Initial Purchasers, including the receipt of Additional Amounts upon a
registration default (as defined in such agreement).

                                      A-10
<PAGE>

<TABLE>
<CAPTION>
ASSIGNMENT FORM                                              CONVERSION NOTICE
---------------                                              -----------------
<S>                                                          <C>
To assign this Security, fill in the form below:             To convert this Security into Common Stock of the
                                                             Company, check the box [ ]

I or we assign and transfer this Security to                 To convert only part of this Security, state the
                                                             principal amount to be converted (which must be $1,000
                                                             or an integral multiple of $1,000):

(Insert assignee's soc. sec. or tax ID no.)
                                                             $

(Print or type assignee's name, address and zip code)
                                                             If you want the stock certificate made out in another
and irrevocably appoint ____________________ agent to        person's name fill in the form below:
transfer this Security on the books of the Company.  The
agent may substitute another to act for him.
                                                             (Insert the other person's soc. sec. tax ID no.)
Date:  ______________      Your Signature:

                                                             ______________________________________________________
_______________________________________________________
(Sign exactly as your name appears on the other side of      (Print or type other person's name, address and zip
this Security)                                               code)

Signature Guaranteed

_______________________________________________________      _____________________________________________________
Participant in a Recognized Signature Guarantee Medallion
Program

By: ___________________________________________________
      Authorized Signatory
</TABLE>

                                      A-11
<PAGE>

             SCHEDULE OF INCREASES AND DECREASES OF GLOBAL SECURITY

           INITIAL PRINCIPAL AMOUNT OF GLOBAL SECURITY: ($__________).

<TABLE>
<CAPTION>
                                          AMOUNT OF          PRINCIPAL
                      AMOUNT OF           DECREASE           AMOUNT OF
                     INCREASE IN        IN PRINCIPAL      GLOBAL SECURITY          NOTATION BY
                      PRINCIPAL            AMOUNT              AFTER                REGISTRAR
                      AMOUNT OF           OF GLOBAL         INCREASE OR            OR SECURITY
DATE               GLOBAL SECURITY        SECURITY            DECREASE              CUSTODIAN
----               ---------------        --------            --------              ---------
<S>                <C>                  <C>               <C>                      <C>

</TABLE>

                                      A-12
<PAGE>

                                    EXHIBIT B

                     [FORM OF FACE OF CERTIFICATED SECURITY]

      THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OR OTHER
JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY
BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY,
BY ITS ACCEPTANCE HEREOF:

      (1)   REPRESENTS THAT IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED
            IN RULE 144A UNDER THE SECURITIES ACT ("RULE 144A"));

      (2)   AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR
            WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE
            TRANSFER SUCH SECURITY OR ANY COMMON STOCK ISSUABLE UPON CONVERSION
            OF SUCH SECURITY, PRIOR TO THE EXPIRATION OF THE HOLDING PERIOD
            APPLICABLE TO SALES OF THIS SECURITY UNDER RULE 144(k) UNDER THE
            SECURITIES ACT (OR ANY SUCCESSOR PROVISION), ONLY (A) TO THE ISSUER,
            (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED
            EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH CONTINUES TO BE
            EFFECTIVE AT THE TIME OF SUCH TRANSFER), (C) FOR SO LONG AS THE
            SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, IN
            COMPLIANCE WITH RULE 144A TO A PERSON IT REASONABLY BELIEVES IS A
            QUALIFIED INSTITUTIONAL BUYER THAT PURCHASES FOR ITS OWN ACCOUNT OR
            FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS
            GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A OR
            (D) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
            REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE ISSUER'S AND THE
            TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT
            TO CLAUSE (D) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
            CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM;
            AND

      (3)   AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS SECURITY IS
            TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.
            THIS LEGEND WILL BE REMOVED UPON THE EARLIER OF THE TRANSFER OF THIS
            SECURITY PURSUANT TO CLAUSE 2(B) ABOVE OR UPON ANY TRANSFER OF THIS
            SECURITY UNDER RULE 144 UNDER THE SECURITIES ACT (OR ANY SUCCESSOR
            PROVISION).

                                       B-1
<PAGE>

      The foregoing legend may be removed from this Security on satisfaction of
the conditions specified in the Indenture.

                                       B-2
<PAGE>

                               CELL GENESYS, INC.

                    3.125% CONVERTIBLE SENIOR NOTES DUE 2011

No.:                                    CUSIP:
Issue Date:                             Principal Amount:  $

      Cell Genesys, Inc., a Delaware corporation, promises to pay to
_________________ ______________ or registered assigns, the principal amount of
dollars [_______________ ($______________)] on [ - ].

      Interest Payment Dates: November 1 and May 1, commencing May 1, 2005.

      Record Dates: October 15 and April 15.

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

      IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.

Dated:  ____________, 200__

                                        CELL GENESYS, INC.

                                        By: ____________________________________
                                            Title:

TRUSTEE'S CERTIFICATE OF AUTHENTICATION

U.S. BANK NATIONAL ASSOCIATION,
as Trustee, certifies that this is one of the Securities
referred to in the within mentioned Indenture.

By: _______________________________________
    Authorized Signatory

Dated:  ____________, 200__

                                       B-3
<PAGE>

       [FORM OF REVERSE OF CERTIFICATED SECURITY IS IDENTICAL TO EXHIBIT A

                 EXCEPT NO SCHEDULE OF INCREASES AND DECREASES]

                                       B-4
<PAGE>

                                    EXHIBIT C

                    3.125% CONVERTIBLE SENIOR NOTES DUE 2011

                              TRANSFER CERTIFICATE

      In connection with any transfer of any of the Securities or beneficial
interest in a Global Security that is a Restricted Security within the period
prior to the expiration of the holding period applicable to the sales thereof
under Rule 144(k) under the Securities Act of 1933, as amended (the Securities
Act) (or any successor provision), the undersigned registered owner or
beneficial owner of this Security hereby certifies with respect to $
_______________ principal amount of the above-captioned Securities (the
"Surrendered Securities") presented or surrendered on the date hereof for
registration of transfer, or for exchange or conversion where the securities
issuable upon such exchange or conversion are to be registered in a name other
than that of the undersigned registered or beneficial owner (each such
transaction being a "transfer"), that such transfer complies with the
restrictive legend set forth on the face of the Surrendered Securities for the
reason checked below:

      [ ]   A transfer of the Surrendered Securities is made to the Company or
            any subsidiaries; or

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

      [ ]   The transfer of the Surrendered Securities complies with Rule
            501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act;
            or

      [ ]   The transfer of the Surrendered Securities is pursuant to an
            effective registration statement under the Securities Act; or

      [ ]   The transfer of the Surrendered Securities is pursuant to another
            available exemption from the registration requirement of the
            Securities Act;

and unless the box below is checked, the undersigned confirms that, to the
undersigned's knowledge, such Securities are not being transferred to an
"affiliate" of the Company as defined in Rule 144 under the Securities Act (an
"Affiliate").

      [ ]   The transferee is an Affiliate of the Company.

Dated:  ____________, 200__

                                      C-1
<PAGE>

                                        ________________________________________
                                        Signature(s)

Signature Guarantee:

Signature must be guaranteed by a participant
in a recognized signature guaranty
medallion program or other signature
guarantor acceptable to the Trustee.

                                      C-2<PAGE>

                                                                    Exhibit 10.1

                      RESALE REGISTRATION RIGHTS AGREEMENT

                                     between

                               CELL GENESYS, INC.,

                         J.P. MORGAN SECURITIES INC. and

                              LEHMAN BROTHERS INC.

                  as representatives of the Initial Purchasers

                          DATED AS OF OCTOBER 20, 2004

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                          Page
                                                                                          ----
<S>                                                                                       <C>
1.  Definitions.........................................................................   1

2.  Shelf Registration..................................................................   4

3.  Additional Amounts..................................................................   6

4.  Registration Procedures.............................................................   7

5.  Registration Expenses...............................................................  13

6.  Indemnification and Contribution....................................................  14

7.  Rule 144A...........................................................................  17

8.  Participation in Underwritten Registrations.........................................  18

9.  Miscellaneous.......................................................................  18
</TABLE>

                                       i
<PAGE>

      RESALE REGISTRATION RIGHTS AGREEMENT, dated as of October 20, 2004,
between Cell Genesys, Inc., a Delaware corporation (together with any successor
entity, herein referred to as the "Company"), J.P. Morgan Securities Inc. and
Lehman Brothers Inc., as representatives of the several initial purchasers (the
"Initial Purchasers") listed on Schedule I to the purchase agreement dated
October 14, 2004 between the Company and the Initial Purchasers (the "Purchase
Agreement").

      Pursuant to the Purchase Agreement, the Initial Purchasers have agreed to
purchase from the Company $110,000,000 ($145,000,000 if the Initial Purchasers
exercise their option in full) aggregate principal amount of 3.125% Convertible
Senior Notes due 2011 (the "Notes"). The Notes initially will be convertible
into fully paid, nonassessable shares of common stock, par value $0.001 per
share, of the Company (the "Common Stock") on the terms, and subject to the
conditions, set forth in the Indenture (as defined herein). To induce the
Initial Purchasers to purchase the Notes, the Company has agreed to provide the
registration rights set forth in this Agreement pursuant to the Purchase
Agreement.

      The parties hereby agree as follows:

      1.    Definitions. As used in this Agreement, the following capitalized
terms shall have the following meanings:

            Additional Amounts:            As defined in Section 3(a) hereof.

            Additional Amounts             Each May 1 and November 1, commencing
            Payment Date:                  May 1, 2005.

            Affiliate:                     As such term is defined in Rule 405
                                           under the Securities Act.

            Agreement:                     This Resale Registration Rights
                                           Agreement, as amended, modified or
                                           otherwise supplemented from time to
                                           time in accordance with the terms
                                           hereof.

            Blue Sky Application:          As defined in Section 6(a)(i) hereof.

            Business Day:                  A day other than a Saturday or Sunday
                                           or any day on which banking
                                           institutions in The City of New York
                                           are authorized or obligated by law or
                                           executive order to close.

            Closing Date:                  The date of this Agreement.

            Commission:                    Securities and Exchange Commission.

            Common Stock:                  As defined in the preamble hereto.

                                     - 1 -
<PAGE>

         Company:                          As defined in the preamble hereto.

         Effectiveness Period:             As defined in Section 2(a)(iii)
                                           hereof.

         Effectiveness Target Date:        As defined in Section 2(a)(ii)
                                           hereof.

         Exchange Act:                     Securities Exchange Act of 1934, as
                                           amended, and the rules and
                                           regulations of the Commission
                                           thereunder.

         Holder:                           A Person who owns, beneficially or
                                           otherwise, Transfer Restricted
                                           Securities.

         Indemnified Holder:               As defined in Section 6(a) hereof.

         Indenture:                        The Indenture, dated as of October
                                           20, 2004, between the Company and
                                           U.S. Bank National Association, as
                                           trustee (the "Trustee"), pursuant to
                                           which the Notes are to be issued, as
                                           such Indenture is amended, modified
                                           or supplemented from time to time in
                                           accordance with the terms thereof.

         Initial Purchasers:               As defined in the preamble hereto.

         Interest Payment Date:            Each May 1 and November 1 of each
                                           year, commencing May 1, 2005.

         Majority of Holders:              Holders holding more than 50% of the
                                           aggregate principal amount of Notes
                                           outstanding; provided that, for
                                           purpose of this definition, a holder
                                           of shares of Common Stock which
                                           constitute Transfer Restricted
                                           Securities when issued upon
                                           conversion of the Notes shall be
                                           deemed to hold an aggregate principal
                                           amount of Notes (in addition to the
                                           principal amount at maturity of Notes
                                           held by such holder) equal to $1,000
                                           times the quotient of (i) the number
                                           of such shares of Common Stock
                                           received upon conversion of the Notes
                                           and then held by such holder divided
                                           by (ii) the conversion rate(s) in
                                           effect at the time such holder
                                           converted Notes into such shares of
                                           Common Stock.

         NASD:                             National Association of Securities
                                           Dealers, Inc.

         Notes:                            As defined in the preamble hereto.

                                      - 2 -
<PAGE>

         Person:                           An individual, partnership,
                                           corporation, unincorporated
                                           organization, limited liability
                                           company, trust, joint venture or a
                                           government or agency or political
                                           subdivision thereof.

         Prospectus:                       The prospectus included in a
                                           Shelf Registration Statement, as
                                           amended or supplemented by any
                                           prospectus supplement and by all
                                           other amendments thereto,
                                           including post-effective
                                           amendments, and all material
                                           incorporated by reference into
                                           such Prospectus.

         Purchase Agreement:               As defined in the preamble hereto.

         Questionnaire:                    As defined in Section 2(b) hereof.

         Questionnaire Deadline:           As defined in Section 2(b) hereof.

         Record Holder:                    With respect to any Additional
                                           Amounts Payment Date, each Person who
                                           is a Holder on the record date with
                                           respect to the Interest Payment Date
                                           on which such Additional Amounts
                                           Payment Date shall occur. In the case
                                           of a Holder of shares of Common Stock
                                           issued upon conversion of the Notes,
                                           "Record Holder" shall mean each
                                           Person who is a Holder of shares of
                                           Common Stock that constitute Transfer
                                           Restricted Securities on each April
                                           15 or October 15 preceding an
                                           Additional Payment Date, as
                                           applicable.

         Registration Default:             As defined in Section 3(a) hereof.

         Securities Act:                   Securities Act of 1933, as amended,
                                           and the rules and resolutions of the
                                           Commission thereunder.

         Shelf Filing Deadline:            As defined in Section 2(a)(i) hereof.

         Shelf Registration Statement:     As defined in Section 2(a)(i) hereof.

         Suspension Notice:                As defined in Section 4(c) hereof.

         Suspension Period:                As defined in Section 4(b)(i) hereof.

         TIA:                              Trust Indenture Act of 1939, as
                                           amended, and the rules and
                                           regulations of the Commission
                                           thereunder, in each case, as in
                                           effect on the date the Indenture is
                                           qualified under the TIA.

                                     - 3 -
<PAGE>

         Transfer Restricted Securities:   Each Note and each share of Common
                                           Stock issued upon conversion of Notes
                                           until the earliest of:

                                      (a)  the date on which such Note or such
                                           share of Common Stock issued upon
                                           conversion thereof has been
                                           effectively registered under the
                                           Securities Act and disposed of in
                                           accordance with the Shelf
                                           Registration Statement;

                                      (b)  the date on which such Note or such
                                           share of Common Stock issued upon
                                           conversion thereof is transferred in
                                           compliance with Rule 144 under the
                                           Securities Act or may be sold or
                                           transferred by a person who is not an
                                           Affiliate of the Company pursuant to
                                           Rule 144 under the Securities Act (or
                                           any other similar provision then in
                                           force) without any volume or manner
                                           of sale restrictions thereunder; and

                                      (c)  the date on which such Note or such
                                           share of Common Stock issued upon
                                           conversion ceases to be outstanding
                                           (whether as a result of redemption,
                                           repurchase and cancellation,
                                           conversion or otherwise); provided
                                           that any Note and any Common Stock
                                           issued upon conversion of such Note
                                           that is redeemed or repurchased by
                                           the Company shall not be deemed
                                           Transfer Restricted Securities for
                                           purposes of this Agreement upon
                                           resale by the Company

         Underwritten Registration         A registration in which Transfer
                                           Restricted

         or Underwritten Offering:         Securities are sold to an underwriter
                                           for reoffering to the public pursuant
                                           to the Shelf Registration Statement.

      2.    Shelf Registration.

            (a)   The Company shall:

                  (i)   not later than 90 days after the date hereof (the "Shelf
Filing Deadline"), cause to be filed a registration statement pursuant to Rule
415 under the Securities Act (together with any amendments or supplements
thereto, and including any documents incorporated by reference therein, the
"Shelf Registration Statement"), which Shelf Registration Statement shall
provide for resales of all Transfer Restricted Securities held by Holders that
have provided the information required pursuant to the terms of Section 2(b)
hereof;

                                     - 4 -
<PAGE>

                  (ii)  use its commercially reasonable efforts to cause the
Shelf Registration Statement to be declared effective by the Commission as
promptly as practicable, but in no event later than 180 days after the date
hereof (the "Effectiveness Target Date"); and

                  (iii) use its commercially reasonable efforts to keep the
Shelf Registration Statement continuously effective, supplemented and amended as
required by the provisions of Section 4(b) hereof (and subject to the right of
the Company to suspend the use of the Shelf Registration Statement by delivery
of a Suspension Notice in accordance with Section 4(b)(i) hereof) to the extent
necessary to ensure that (1) it is available for resales by the Holders of
Transfer Restricted Securities entitled to the benefit of this Agreement and (2)
conforms with the requirements of this Agreement and the Securities Act for a
period (the "Effectiveness Period") until the earliest of:

                        (A)   two years following the last date of original
      issuance of any of the Notes;

                        (B)   the date when all of the Holders of Transfer
      Restricted Securities are able to sell all Transfer Restricted Securities
      immediately without restriction pursuant to Rule 144(k) under the
      Securities Act or any successor rule thereto;

                        (C)   the date when all Transfer Restricted Securities
      have ceased to be outstanding (whether as a result of redemption,
      repurchase and cancellation, conversion or otherwise); or

                        (D)   the date when all Transfer Restricted Securities
      registered under the Shelf Registration Statement have been disposed of in
      accordance with the Shelf Registration Statement.

            (b)   To have its Transfer Restricted Securities included in the
Shelf Registration Statement pursuant to this Agreement at the time of
effectiveness, each Holder shall complete the Selling Securityholder Notice and
Questionnaire, the form of which is contained in Appendix A to the Offering
Memorandum relating to the Notes (the "Questionnaire"), and deliver the
Questionnaire within 20 Business Days of the date of the Questionnaire (the
"Questionnaire Deadline"). The Company shall mail the Questionnaire at least 20
Business Days (but not more than 40 Business Days) prior to the time the Company
intends in good faith to have the Shelf Registration Statement declared
effective by the Commission. Upon receipt of a written request for additional
information from the Company, each Holder who intends to be named as a selling
securityholder in the Shelf Registration Statement shall furnish to the Company
in writing, within 20 Business Days after such Holder's receipt of such request,
such additional information regarding such Holder and the proposed distribution
by such Holder of its Transfer Restricted Securities, in connection with the
Shelf Registration Statement or Prospectus or Preliminary Prospectus included
therein and in any application to be filed with or under state securities law,
as the Company may reasonably request. In connection with all such requests for
information from Holders of Transfer Restricted Securities, the Company shall
notify such Holders of the requirements set forth in this paragraph regarding
their obligation to provide the information requested pursuant to this Section.
Each Holder must notify the Company not later than three Business Days prior to
any proposed sale by that Holder pursuant to the Shelf

                                     - 5 -
<PAGE>

Registration Statement. This notice will be effective for five Business Days.
Holders who have not delivered a Questionnaire prior to the effectiveness of the
Shelf Registration Statement may receive a Questionnaire from the Company upon
request. Upon receipt of such a completed Questionnaire from a Holder following
the effectiveness of the Shelf Registration Statement, the Company shall, as
promptly as reasonably practicable, and in any event within 30 calendar days,
file such amendments to the Shelf Registration Statement or supplements to a
related Prospectus as are necessary to permit such Holder to be named in, and to
transfer its Transfer Restricted Securities pursuant to, the Shelf Registration
Statement; provided, however, that in no event will the Company be obligated to
file such an amendment or supplement more than once in any 90-day period. Each
Holder as to which the Shelf Registration Statement is being effected agrees to
furnish promptly to the Company all information required to be disclosed in
order to make information previously furnished to the Company by such Holder not
materially misleading.

      3.    Additional Amounts.

            (a)   If:

                  (i)   the Shelf Registration Statement is not filed with the
Commission prior to or on the Shelf Filing Deadline;

                  (ii)  the Shelf Registration Statement has not been declared
effective by the Commission prior to or on the Effectiveness Target Date;

                  (iii) except as provided in Section 4(b)(i) hereof, the Shelf
Registration Statement is filed and declared effective but, during the
Effectiveness Period, shall thereafter cease to be effective or fail to be
usable for its intended purpose without being succeeded within five Business
Days by a post-effective amendment to the Shelf Registration Statement, a
supplement to the Prospectus or a report filed with the Commission pursuant to
Section 13(a), 13(c), 14 or 15(d) of the Exchange Act that cures such failure
and, in the case of a post-effective amendment, is itself immediately declared
effective; or

                  (iv)  (A) prior to or on the 60th or 90th day, as the case may
be, of any Suspension Period, such suspension has not been terminated or (B)
Suspension Periods exceed an aggregate of 120 days in any 360-day period,

(each such event referred to in foregoing clauses (i) through (iv), a
"Registration Default"), the Company hereby agrees to pay additional amounts
("Additional Amounts") with respect to the Notes from and including the day
following the Registration Default to but excluding the earlier of (1) the day
on which the Registration Default has been cured and (2) the expiration of the
Effectiveness Period, accruing at a rate:

                        (x)   with respect to each day during the first 90-day
period during which a Registration Default shall have occurred and be
continuing, equal to 0.25% per annum of the principal amount of the Notes, and

                        (y)   with respect to each day during the period
commencing on the 91st day following the day the Registration Default shall have
occurred and be

                                     - 6 -
<PAGE>

      continuing, equal to 0.50% per annum of the principal amount of the Notes;
      provided that in no event shall Additional Amounts accrue at a rate per
      annum exceeding 0.50% of the principal amount of the Notes.

Notwithstanding the foregoing, Additional Amounts shall not accrue under clauses
(iii) and (iv) above with respect to Holders that do not submit a properly
completed Questionnaire by the Questionnaire Deadline and are not otherwise
named as a selling Holder in the Shelf Registration Statement.

            (b)   Notwithstanding Section 3(a) above, in the event that (i) the
Company is required under Section 2(b) to file a post-effective amendment to the
Shelf Registration Statement due to the failure of a Holder of Notes to deliver
to the Company a completed and signed Questionnaire prior to the Questionnaire
Deadline, along with any other information the Company may reasonably request,
and (ii) the filing of such post-effective amendment to the Shelf Registration
Statement has the effect of suspending the ability of the other holders of
Transfer Restricted Securities already listed as selling Holders in the Shelf
Registration Statement to resell their Transfer Restricted Securities, then
Additional Amounts otherwise payable under this Section 3 shall not accrue until
after the tenth day of such suspension.

            (c)   All accrued Additional Amounts shall be paid in arrears to
Record Holders by the Company on each Additional Amounts Payment Date in the
same manner as payment of interest on the Notes. Upon the cure of all
Registration Defaults relating to any particular Security, the accrual of
Additional Amounts with respect to such Security will cease. The Company agrees
to deliver all notices, certificates and other documents contemplated by the
Indenture in connection with the payment of Additional Amounts.

      Notwithstanding any other provision of this Agreement, no Additional
Amounts shall accrue to any Transfer Restricted Security from and after the
earlier of the date such security is no longer a Transfer Restricted Security
and the expiration of the Effectiveness Period. All obligations of the Company
set forth in this Section 3 that are outstanding with respect to any Notes at
the time such security ceases to be a Transfer Restricted Security shall survive
until such time as all such obligations with respect to such Transfer Restricted
Security shall have been satisfied in full.

      The Additional Amounts set forth above shall be the exclusive monetary
remedy available to the Holders of Notes for such Registration Default.

      4.    Registration Procedures.

            (a)   In connection with the Shelf Registration Statement, the
Company shall comply with all the provisions of Section 4(b) hereof and shall
use its commercially reasonable efforts to effect such registration to permit
the sale of the Transfer Restricted Securities being sold in accordance with the
intended method or methods of distribution thereof, and pursuant thereto, shall
prepare and file with the Commission a Shelf Registration Statement relating to
the registration on any appropriate form under the Securities Act.

                                     - 7 -
<PAGE>

            (b)   In connection with the Shelf Registration Statement and any
Prospectus required by this Agreement to permit the sale or resale of Transfer
Restricted Securities, the Company shall:

                  (i)   Use its commercially reasonable efforts to keep the
Shelf Registration Statement continuously effective during the Effectiveness
Period; upon the occurrence of any event or the existence of any fact that would
cause the Shelf Registration Statement or the Prospectus contained therein, in
either case including any document incorporated by reference therein, (1) to
contain a material misstatement or omission or (2) not be effective and usable
for resale of Transfer Restricted Securities during the Effectiveness Period,
the Company shall file promptly an appropriate amendment to the Shelf
Registration Statement, a supplement to the Prospectus or a report filed with
the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange
Act, in the case of clause (1), correcting any such misstatement or omission,
and, in the case of either clause (1) or (2), use its commercially reasonable
efforts to cause such amendment to be declared effective and the Shelf
Registration Statement and the related Prospectus to become usable for their
intended purposes as soon as practicable thereafter. Notwithstanding the
foregoing, the Company may suspend the effectiveness of the Shelf Registration
Statement by written notice to the Holders for a period not to exceed an
aggregate of 60 days in any 90-day period or 120 days in any 360-day period
(each such period, a "Suspension Period") if:

                        (A)   an event occurs and is continuing as a result of
      which the Shelf Registration Statement would, in the Company's reasonable
      judgment, contain an untrue statement of a material fact or omit to state
      a material fact required to be stated therein or necessary to make the
      statements therein not misleading; and

                        (B)   the Company reasonably determines that the
      disclosure of such event at such time would have a material adverse effect
      on the business of the Company (and its subsidiaries, if any, taken as a
      whole);

provided that in the event the disclosure relates to a previously undisclosed
proposed or pending material business transaction, the disclosure of which the
Company determines in good faith would be reasonably likely to impede the
Company's ability to consummate such transaction, the Company may extend a
Suspension Period from 60 days to 90 days; provided, however, that Suspension
Periods shall not exceed an aggregate of 120 days in any 360-day period. The
Company shall not be required to specify in the written notice to the Holders
the nature of the event giving rise to the Suspension Period. Any suspension
caused solely by the Company being required under Section 2(b) to file a
post-effective amendment to the Shelf Registration Statement due to the failure
of a Holder of Notes to deliver to the Company a completed and signed
Questionnaire prior to the Questionnaire Deadline shall not accrue against the
60 day, 90 day and 120 day periods for an aggregate amount of time not to exceed
the lesser of the date on which such post-effective amendment is declared
effective and the ten day period described in Section 3(b).

                  (ii)  Prepare and file with the Commission such amendments and
post-effective amendments to the Shelf Registration Statement as may be
necessary to keep the Shelf Registration Statement effective during the
Effectiveness Period; cause the Prospectus to be

                                     - 8 -
<PAGE>

supplemented by any required Prospectus supplement, and as so supplemented to be
filed pursuant to Rule 424 under the Securities Act, and to comply fully with
the applicable provisions of Rules 424 and 430A under the Securities Act in a
timely manner; and comply with the provisions of the Securities Act with respect
to the disposition of all securities covered by the Shelf Registration Statement
during the applicable period in accordance with the intended method or methods
of distribution by the sellers thereof set forth in the Shelf Registration
Statement or supplement to the Prospectus.

                  (iii) Advise the underwriter(s), if any, and selling Holders
promptly (but in any event within two Business Days) and, if requested by such
Persons, to confirm such advice in writing:

                        (A)   when the Prospectus or any Prospectus supplement
      or post-effective amendment (other than a document incorporated by
      reference upon filing with the Commission) has been filed, and, with
      respect to the Shelf Registration Statement or any post-effective
      amendment thereto (other than a document incorporated by reference upon
      filing with the Commission), when the same has become effective,

                        (B)   of any request by the Commission for amendments to
      the Shelf Registration Statement or amendments or supplements to the
      Prospectus or for additional information relating thereto,

                        (C)   of the issuance by the Commission of any stop
      order suspending the effectiveness of the Shelf Registration Statement
      under the Securities Act or of the suspension by any state securities
      commission of the qualification of the Transfer Restricted Securities for
      offering or sale in any jurisdiction, or the initiation of any proceeding
      for any of the preceding purposes, or

                        (D)   of the existence of any fact or the happening of
      any event, during the Effectiveness Period (but not as to the substance of
      any such fact or event), that makes any statement of a material fact made
      in the Shelf Registration Statement, the Prospectus, any amendment or
      supplement thereto, or any document incorporated by reference therein
      untrue, or that requires the making of any additions to or changes in the
      Shelf Registration Statement or the Prospectus in order to make the
      statements therein not misleading.

If at any time the Commission shall issue any stop order suspending the
effectiveness of the Shelf Registration Statement, or any state securities
commission or other regulatory authority shall issue an order suspending the
qualification or exemption from qualification of the Transfer Restricted
Securities under state securities or Blue Sky laws, the Company shall use its
commercially reasonable efforts to promptly obtain the withdrawal or lifting of
such order and will provide to the Initial Purchasers and each Holder who is
named in the Shelf Registration Statement prompt notice of the withdrawal of any
such order.

                  (iv)  Furnish to each of the selling Holders, and the counsel
to the Holders described in Section 5(a)(iv), before its initial filing with the
Commission, a copy of the Shelf Registration Statement and copies of any
Prospectus included therein (other than

                                     - 9 -
<PAGE>

documents incorporated by reference after the initial filing of the Shelf
Registration Statement), and, if such Holder so requests in writing, copies of
each amendment or supplement thereto. Prior to the date the Shelf Registration
Statement is declared effective, the Company shall use its reasonable efforts to
take into account and reflect in an amendment to the Shelf Registration
Statement, and any Prospectus included therein, any comments on the Shelf
Registration Statement, and any Prospectus included therein, as initially filed
as the selling Holder, and the counsel to the Holders described in Section
5(a)(iv), may reasonably propose.

                  (v)   Furnish to each of the underwriter(s), if any, before
filing with the Commission, a copy of the Shelf Registration Statement and
copies of any Prospectus included therein or any amendments or supplements to
the Shelf Registration Statement or Prospectus (other than documents
incorporated by reference after the initial filing of the Shelf Registration
Statement), which documents will be subject to the review of such
underwriter(s), if any, for a period of at least five Business Days (in the case
of the initial filing of the Shelf Registration Statement and Prospectus) and
two Business Days (in the case of any amendment or supplement thereto), and the
Company will not file the Shelf Registration Statement or Prospectus or any
amendment or supplement to the Shelf Registration Statement or Prospectus (other
than documents incorporated by reference) to which the underwriter(s), if any,
shall reasonably object prior to the filing thereof. An underwriter, if any,
shall be deemed to have reasonably objected to such filing if the Shelf
Registration Statement, amendment, Prospectus or supplement, as applicable, as
proposed to be filed, contains a material misstatement or omission.

                  (vi)  Make available at reasonable times for inspection by one
or more representatives of any underwriter participating in any distribution
pursuant to the Shelf Registration Statement, and any attorney or accountant
retained by such underwriter(s), all financial and other records, pertinent
corporate documents and properties of the Company as shall be reasonably
necessary to enable them to exercise any applicable due diligence
responsibilities, and cause the Company's officers, directors, managers and
employees to supply all information reasonably requested by any such
underwriter, attorney or accountant in connection with the Shelf Registration
Statement after the filing thereof and before its effectiveness, provided,
however, that any information designated by the Company as confidential at the
time of delivery of such information shall be kept confidential by the recipient
thereof.

                  (vii) If requested by any selling Holders or the
underwriter(s), if any, promptly incorporate in the Shelf Registration Statement
or Prospectus, pursuant to a supplement or post effective amendment if
necessary, such information as such selling Holders and underwriter(s), if any,
may reasonably request to have included therein, including, without limitation:
(1) information relating to the "Plan of Distribution" of the Transfer
Restricted Securities, (2) information with respect to the principal amount of
Notes or number of shares of Common Stock being sold to such underwriter(s), (3)
the purchase price being paid therefor and (4) any other terms of the offering
of the Transfer Restricted Securities to be sold in such offering; and make all
required filings of such Prospectus supplement or post effective amendment as
soon as reasonably practicable and in accordance with Section 2(b) hereof after
the Company is notified of the matters to be incorporated in such Prospectus
supplement or post effective amendment.

                                     - 10 -
<PAGE>

                  (viii) Furnish to each selling Holder and each of the
underwriter(s), if any, upon their request, without charge, at least one copy of
the Shelf Registration Statement, as first filed with the Commission, and of
each amendment thereto (and any documents incorporated by reference therein or
exhibits thereto (or exhibits incorporated in such exhibits by reference) as
such Person may request).

                  (ix)  Deliver to each selling Holder and each of the
underwriter(s), if any, without charge, as many copies of the Prospectus
(including each preliminary prospectus) and any amendment or supplement thereto
as such Persons reasonably may request; subject to any notice by the Company in
accordance with this Section 4(b) of the existence of any fact or event of the
kind described in Section 4(b)(iii)(D), the Company hereby consents to the use
of the Prospectus and any amendment or supplement thereto by each of the selling
Holders and each of the underwriter(s), if any, in connection with the offering
and the sale of the Transfer Restricted Securities covered by the Prospectus or
any amendment or supplement thereto.

                  (x)   In connection with an Underwritten Offering, the Company
shall upon request, furnish to each underwriter, if any, in such substance and
scope as they may reasonably request and as are customarily made by issuers to
underwriters in primary underwritten offerings for selling security holders,
upon the date of closing of any sale of Transfer Restricted Securities in an
Underwritten Registration:

                        (A)   a certificate, dated the date of such closing,
      signed by an executive officer of the Company confirming, as of the date
      thereof, as are customarily covered in an officer's certificate to
      underwriters in connection with underwritten offerings of securities;

                        (B)   opinions, each dated the date of such closing, of
      counsel to the Company covering such of the matters as are customarily
      covered in legal opinions to underwriters in connection with underwritten
      offerings of securities; and

                        (C)   customary comfort letters, dated the date of such
      closing, from the Company's independent accountants in the customary form
      and covering matters of the type customarily covered in comfort letters to
      underwriters in connection with underwritten offerings of securities.

                  (xi)  Set forth in full in the underwriting agreement, if any,
indemnification provisions and procedures which provide rights no less
protective than those set forth in Section 6 hereof with respect to all parties
to be indemnified.

                  (xii) Deliver such other documents and certificates as may be
reasonably requested by such parties to evidence compliance with Section
4(b)(ix) above and with any customary conditions contained in the underwriting
agreement or other agreement entered into by the selling Holders pursuant to
this Section 4 (b) (xi).

                  (xiii) Before any public offering of Transfer Restricted
Securities, cooperate with the selling Holders, the underwriter(s), if any, and
their respective counsel in connection with the registration and qualification
of the Transfer Restricted Securities under the securities or Blue Sky laws of
such jurisdictions in the United States as the selling Holders or

                                     - 11 -
<PAGE>

underwriter(s), if any, may reasonably request and do any and all other acts or
things necessary or advisable to enable the disposition in such jurisdictions of
the Transfer Restricted Securities covered by the Shelf Registration Statement;
provided, however, that the Company shall not be required (A) to register or
qualify as a foreign corporation or a dealer of securities where it is not now
so qualified or to take any action that would subject it to the service of
process in any jurisdiction where it is not now so subject or (B) to subject
itself to taxation in any such jurisdiction if it is not now so subject.

                  (xiv) Cooperate with the selling Holders and the
underwriter(s), if any, to facilitate the timely preparation and delivery of
certificates representing Transfer Restricted Securities to be sold and not
bearing any restrictive legends (unless required by applicable securities laws);
and enable such Transfer Restricted Securities to be in such denominations and
registered in such names as the Holders or the underwriter(s), if any, may
request at least two Business Days before any sale of Transfer Restricted
Securities made by such underwriter(s).

                  (xv)  Use its commercially reasonable efforts to cause the
Transfer Restricted Securities covered by the Shelf Registration Statement to be
registered with or approved by such other U.S. governmental agencies or
authorities as may be necessary to enable the seller or sellers thereof or the
underwriter(s), if any, to consummate the disposition of such Transfer
Restricted Securities.

                  (xvi) Provide CUSIP numbers for all Transfer Restricted
Securities not later than the effective date of the Shelf Registration Statement
and provide the Trustee under the Indenture with certificates for the Notes that
are in a form eligible for deposit with The Depository Trust Company.

                  (xvii) Cooperate and assist in any filings required to be made
with the NASD and in the performance of any due diligence investigation by any
underwriter that is required to be retained in accordance with the rules and
regulations of the NASD.

                  (xviii) Otherwise use its commercially reasonable efforts to
comply with all applicable rules and regulations of the Commission and all
reporting requirements under the Exchange Act.

                  (xix) Cause the Indenture to be qualified under the TIA not
later than the effective date of the Shelf Registration Statement required by
this Agreement, and, in connection therewith, cooperate with the Trustee and the
holders of Notes to effect such changes to the Indenture as may be required for
such Indenture to be so qualified in accordance with the terms of the TIA; and
execute and use its commercially reasonable efforts to cause the Trustee
thereunder to execute all documents that may be required to effect such changes
and all other forms and documents required to be filed with the Commission to
enable such Indenture to be so qualified in a timely manner.

                  (xx)  Cause all shares of Common Stock covered by the Shelf
Registration Statement to be listed or quoted, as the case may be, on each
securities exchange or automated quotation system on which similar securities
issued by the Company are then listed or

                                     - 12 -
<PAGE>

quoted.

                  (xxi) Provide to each Holder upon written request each
document filed with the Commission pursuant to the requirements of Section 13
and Section 15 of the Exchange Act after the effective date of the Shelf
Registration Statement.

                  (xxii) If requested by the underwriter(s), make appropriate
officers of the Company available to the underwriter(s) for meetings with
prospective purchasers of the Transfer Restricted Securities and prepare and
present to potential investors customary "road show" or marketing materials in a
manner consistent with other new issuances of other securities similar to the
Transfer Restricted Securities.

            (c)   Each Holder agrees by acquisition of a Transfer Restricted
Security that, upon receipt of any notice (a "Suspension Notice") from the
Company of the existence of any fact of the kind described in Section
4(b)(iii)(D) hereof, such Holder will, and will use its reasonable efforts to
cause any underwriter(s) in an Underwritten Offering to, forthwith discontinue
disposition of Transfer Restricted Securities pursuant to the Shelf Registration
Statement until:

                  (i)   such Holder has received copies of the supplemented or
amended Prospectus contemplated by Sections 4(b)(i) and 4(b)(viii) hereof; or

                  (ii)  such Holder is advised in writing by the Company that
the use of the Prospectus may be resumed, and has received copies of any
additional or supplemental filings that are incorporated by reference in the
Prospectus.

Each Holder agrees to keep the receipt of a Suspension Notice and its contents
confidential. If so directed by the Company, each Holder will deliver to the
Company (at the Company's expense) all copies, other than permanent file copies
then in such Holder's possession, of the Prospectus covering such Transfer
Restricted Securities that was current at the time of receipt of such notice of
suspension.

      5.    Registration Expenses.

            (a)   All expenses incident to the Company's performance of or
compliance with this Agreement shall be borne by the Company regardless of
whether a Shelf Registration Statement becomes effective, including, without
limitation:

                  (i)   all registration and filing fees and expenses (including
filings made by any Initial Purchasers or Holders with the NASD);

                  (ii)  all fees and expenses of compliance with federal
securities and state Blue Sky or securities laws;

                  (iii) all expenses of printing (including printing of
Prospectuses and certificates for the Common Stock to be issued upon conversion
of the Notes) and the Company's expenses for messenger and delivery services and
telephone;

                                     - 13 -
<PAGE>

                  (iv)  all fees and disbursements of counsel to the Company
and, subject to Section 5(b) below, the Holders of Transfer Restricted
Securities;

                  (v)   all application and filing fees in connection with
listing (or authorizing for quotation) the Common Stock on a national securities
exchange or automated quotation system pursuant to the requirements hereof; and

                  (vi)  all fees and disbursements of independent certified
public accountants of the Company (including the expenses of any special audit
and comfort letters required by or incident to such performance).

The Company shall bear its internal expenses (including, without limitation, all
salaries and expenses of its officers and employees performing legal, accounting
or other duties), the expenses of any annual audit and the fees and expenses of
any Person, including special experts, retained by the Company. Notwithstanding
the foregoing, the Holders of the Transfer Restricted Securities being
registered shall pay (1) all agency fees and commissions and underwriting
discounts and commissions attributable to the sale of such Transfer Restricted
Securities and (2) the fees and disbursements of any counsel retained by any
Holder, other than the counsel to the Holders of Transfer Restricted Securities
referred to in Section 5(a)(iv) above.

            (b)   In connection with the Shelf Registration Statement required
by this Agreement and any other documents delivered to any Holders, the Company
shall reimburse the Initial Purchasers and the Holders of Transfer Restricted
Securities being registered pursuant to the Shelf Registration Statement, as
applicable, for the reasonable fees and disbursements of not more than one
counsel, which shall be chosen by a Majority of Holders for whose benefit the
Shelf Registration Statement is being prepared.

      6.    Indemnification and Contribution.

            (a)   The Company shall indemnify and hold harmless each Holder,
such Holder's officers, directors, partners and employees and each person, if
any, who controls such Holder within the meaning of either Section 15 of the
Securities Act or Section 20 of the Exchange Act (each, an "Indemnified
Holder"), from and against any loss, claim, damage or liability, joint or
several, or any action in respect thereof (including, but not limited to, any
loss, claim, damage, liability or action relating to resales of the Transfer
Restricted Securities), to which such Indemnified Holder may become subject,
insofar as any such loss, claim, damage, liability or action arises out of, or
is based upon:

                  (i)   any untrue statement or alleged untrue statement of a
material fact contained in (A) the Shelf Registration Statement or Prospectus or
any amendment or supplement thereto or (B) any blue sky application or other
document or any amendment or supplement thereto prepared or executed by the
Company (or based upon written information furnished by or on behalf of the
Company expressly for use in such blue sky application or other document or
amendment on supplement) filed in any jurisdiction specifically for the purpose
of qualifying any or all of the Transfer Restricted Securities under the
securities law of any state or other jurisdiction (such application or document
being hereinafter called a "Blue Sky Application"); or

                                     - 14 -
<PAGE>

                  (ii)  the omission or alleged omission to state in the Shelf
Registration Statement, Prospectus or any amendment or supplement thereto, or in
any Blue Sky Application, any material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading,

and shall reimburse each Indemnified Holder promptly upon demand for any legal
or other expenses reasonably incurred by such Indemnified Holder in connection
with investigating or defending or preparing to defend against any such loss,
claim, damage, liability or action as such expenses are incurred; provided,
however, that the Company shall not be liable in any such case to the extent
that any such loss, claim, damage, liability or action arises out of, or is
based upon, (A) any untrue statement or alleged untrue statement or omission or
alleged omission made in the Shelf Registration Statement or Prospectus or
amendment or supplement thereto or Blue Sky Application or other document
referred to in Section 6(a)(i) hereof in reliance upon and in conformity with
written information furnished to the Company by or on behalf of such Holder (or
its related Indemnified Holder) specifically for inclusion therein and (B) the
failure of the Indemnified Holder to deliver any corrective amendment or
supplement after delivery by the Company to such Indemnified Holder of such
amendment or supplement. The foregoing indemnity agreement is in addition to any
liability that the Company may otherwise have to any Indemnified Holder.

            (b)   Each Holder, severally and not jointly, shall indemnify and
hold harmless the Company, its officers, directors and employees and each
person, if any, who controls the Company within the meaning of the Securities
Act, from and against any loss, claim, damage or liability, joint or several, or
any action in respect thereof, to which the Company or any such officer,
director, employee or controlling person may become subject, insofar as any such
loss, claim, damage or liability or action arises out of, or is based upon:

                  (i)   any untrue statement or alleged untrue statement of any
material fact contained in the Shelf Registration Statement or Prospectus or any
amendment or supplement thereto or any Blue Sky Application or other document
referred to in Section 6(a)(i) hereof; or

                  (ii)  the omission or the alleged omission to state in the
Shelf Registration Statement, Prospectus or any amendment or supplement thereto,
or in any Blue Sky Application or other document referred to in Section 6(a)(i)
hereof, any material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading,

but in each case only to the extent that such untrue statement or alleged untrue
statement or omission or alleged omission was made in reliance upon and in
conformity with written information furnished to the Company by or on behalf of
such Holder (or its related Indemnified Holder) specifically for use therein,
and shall reimburse the Company and any such officer, employee or controlling
person promptly upon demand for any legal or other expenses reasonably incurred
by the Company or any such officer, employee or controlling person in connection
with investigating or defending or preparing to defend against any such loss,
claim, damage, liability or action as such expenses are incurred. In no event
shall the liability of any Holder hereunder be greater in amount than the dollar
amount of the proceeds received by such

                                     - 15 -
<PAGE>

Holder upon the sale of the Transfer Restricted Securities pursuant to the Shelf
Registration Statement giving rise to such indemnification obligation. The
foregoing indemnity agreement is in addition to any liability that any Holder
may otherwise have to the Company and any such officer, employee or controlling
person.

            (c)   Promptly after receipt by an indemnified party under this
Section 6 of notice of any claim or the commencement of any action, the
indemnified party shall, if a claim in respect thereof is to be made against the
indemnifying party under this Section 6, notify the indemnifying party in
writing of the claim or the commencement of that action; provided, however, that
the failure to notify the indemnifying party shall not relieve it from any
liability which it may have under this Section 6 except to the extent it has
been materially prejudiced by such failure and, provided, further, that the
failure to notify the indemnifying party shall not relieve it from any liability
which it may have to an indemnified party otherwise than under this Section 6.
If any such claim or action shall be brought against an indemnified party, and
the indemnified party shall notify the indemnifying party thereof, the
indemnifying party shall be entitled to participate therein and, to the extent
that it wishes, jointly with any other similarly notified indemnifying party, to
assume the defense thereof with counsel satisfactory to the indemnified party.
After notice from the indemnifying party to the indemnified party of its
election to assume the defense of such claim or action, the indemnifying party
shall not be liable to the indemnified party under this Section 6 for any legal
or other expenses subsequently incurred by the indemnified party in connection
with the defense thereof other than reasonable costs of investigation; provided,
however, that a Majority of Holders shall have the right to employ a single
counsel to represent jointly a Majority of Holders and their respective
officers, directors, partners, employees and controlling persons who may be
subject to liability arising out of any claim in respect of which indemnity may
be sought by a Majority of Holders against the Company under this Section 6,
and, if a Majority of Holders seeking indemnification shall have been advised by
legal counsel that there may be one or more legal defenses available to them and
their respective directors, officers, partners, employees and controlling
persons that are different from or additional to those available to the Company
and its officers, directors, employees and controlling persons, the fees and
expenses of a single separate counsel shall be paid by the Company. No
indemnifying party shall:

                  (i)   without the prior written consent of the indemnified
parties (which consent shall not be unreasonably withheld) settle or compromise
or consent to the entry of any judgment with respect to any pending or
threatened claim, action, suit or proceeding in respect of which indemnification
or contribution may be sought hereunder (whether or not the indemnified parties
are actual or potential parties to such claim or action) unless such settlement,
compromise or consent includes an unconditional release of each indemnified
party from all liability arising out of such claim, action, suit or proceeding,
or

                  (ii)  be liable for any settlement of any such action effected
without its written consent (which consent shall not be unreasonably withheld),
but if settled with its written consent or if there be a final judgment for the
plaintiff in any such action, the indemnifying party agrees to indemnify and
hold harmless any indemnified party from and against any loss or liability by
reason of such settlement or judgment.

                                     - 16 -
<PAGE>

            (d)   If the indemnification provided for in this Section 6 shall
for any reason be unavailable or insufficient to hold harmless an indemnified
party under Section 6(a) or 6(b) in respect of any loss, claim, damage or
liability (or action in respect thereof) referred to therein, each indemnifying
party shall, in lieu of indemnifying such indemnified party, contribute to the
amount paid or payable by such indemnified party as a result of such loss,
claim, damage or liability (or action in respect thereof):

                  (i)   in such proportion as is appropriate to reflect the
relative benefits received by the Company from the offering and sale of the
Transfer Restricted Securities on the one hand and a Holder with respect to the
sale by such Holder of the Transfer Restricted Securities on the other, or

                  (ii)  if the allocation provided by Section 6(d)(i) is not
permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits referred to in Section 6(d)(i) but also the relative
fault of the Company on the one hand and the Holders on the other in connection
with the statements or omissions or alleged statements or alleged omissions that
resulted in such loss, claim, damage or liability (or action in respect
thereof), as well as any other relevant equitable considerations.

The relative benefits received by the Company on the one hand and a Holder on
the other with respect to such offering and such sale shall be deemed to be in
the same proportion as the total net proceeds from the offering of the Notes
purchased under the Purchase Agreement (before deducting expenses) received by
the Company on the one hand, bear to the total proceeds received by such Holder
with respect to its sale of Transfer Restricted Securities on the other. The
relative fault of the parties shall be determined by reference to whether the
untrue or alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information supplied by the Company
on the one hand or the Holders on the other, the intent of the parties and their
relative knowledge, access to information and opportunity to correct or prevent
such statement or omission. The Company and each Holder agree that it would not
be just and equitable if the amount of contribution pursuant to this Section
6(d) were determined by pro rata allocation or by any other method of allocation
that does not take into account the equitable considerations referred to in the
first sentence of this paragraph (d). The amount paid or payable by an
indemnified party as a result of the loss, claim, damage or liability, or action
in respect thereof, referred to above in this Section 6 shall be deemed to
include, for purposes of this Section 6, any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or defending
or preparing to defend any such action or claim. Notwithstanding the provisions
of this Section 6, no Holder shall be required to contribute any amount in
excess of the amount by which the total price at which the Transfer Restricted
Securities purchased by it were resold exceeds the amount of any damages which
such Holder has otherwise been required to pay by reason of any untrue or
alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The Holders' obligations to
contribute as provided in this Section 6(d) are several and not joint.

      7.    Rule 144A. In the event the Company is not subject to Section 13 or
15(d) of the Exchange Act, the Company hereby agrees with each Holder, for so
long as any Transfer

                                     - 17 -
<PAGE>

Restricted Securities remain outstanding, to make available to any Holder or
beneficial owner of Transfer Restricted Securities in connection with any sale
thereof and any prospective purchaser of such Transfer Restricted Securities
from such Holder or beneficial owner, the information required by Rule
144A(d)(4) under the Securities Act in order to permit resales of such Transfer
Restricted Securities pursuant to Rule 144A.

      8.    Participation in Underwritten Registrations. No Holder may
participate in any Underwritten Registration hereunder unless such Holder:

            (a)   agrees to sell such Holder's Transfer Restricted Securities on
the basis provided in any underwriting arrangements approved by the Persons
entitled hereunder to approve such arrangements; and

            (b)   completes and executes all reasonable questionnaires, powers
of attorney, indemnities, underwriting agreements, lock-up letters and other
documents required under the terms of such underwriting arrangements.

In any such Underwritten Offering, the investment banker or investment bankers
and manager or managers that will administer the offering will be selected by a
Majority of Holders whose Transfer Restricted Securities are included in such
offering; provided that such investment bankers and managers must be reasonably
satisfactory to the Company. Notwithstanding anything herein to the contrary,
the Company shall not be required to facilitate an Underwritten Offering
pursuant to the Shelf Registration Statement by any Holders unless the offering
relates to at least $25,000,000 aggregate principal amount of Notes.

      9.    Miscellaneous.

            (a)   Remedies. The Company acknowledges and agrees that any failure
by the Company to comply with its obligations under Section 2 hereof may result
in material irreparable injury to the Initial Purchasers or the Holders for
which there is no adequate remedy at law, that it will not be possible to
measure damages for such injuries precisely and that, in the event of any such
failure, the Initial Purchasers or any Holder may obtain such relief as may be
required to specifically enforce the Company's obligations under Section 2
hereof. The Company further agrees to waive the defense in any action for
specific performance that a remedy at law would be adequate.

            (b)   Actions Affecting Transfer Restricted Securities. The Company
shall not, directly or indirectly, take any action with respect to the Transfer
Restricted Securities as a class that would adversely affect the ability of the
Holders of Transfer Restricted Securities to include such Transfer Restricted
Securities in a registration undertaken pursuant to this Agreement.

            (c)   No Inconsistent Agreements. The Company will not, on or after
the date of this Agreement, enter into any agreement with respect to its
securities that is inconsistent with the rights granted to the Holders in this
Agreement or otherwise conflicts with the provisions hereof. In addition, the
Company shall not grant to any of its security holders (other than the Holders
of Transfer Restricted Securities in such capacity) the right to include any of
its securities in the Shelf Registration Statement provided for in this
Agreement other than the Transfer Restricted Securities. Except as contained in
any agreement filed as an exhibit to the

                                     - 18 -
<PAGE>

Company's Annual Report on Form 10-K for the year ended December 31, 2003, the
Company has not previously entered into any agreement (which has not expired or
been terminated) granting any registration rights with respect to its securities
to any Person which rights conflict with the provisions hereof.

            (d)   Amendments and Waivers. This Agreement may not be amended,
modified or supplemented, and waivers or consents to or departures from the
provisions hereof may not be given, unless the Company has obtained the written
consent of a Majority of Holders or such greater percentage of the Holders as
required by the Indenture.

            (e)   Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand delivery, first class mail
(registered or certified, return receipt requested), telex, facsimile
transmission, or air courier guaranteeing overnight delivery:

            (i)   if to a Holder, at the address set forth on the records of the
registrar under the Indenture or the transfer agent of the Common Stock, as the
case may be; and

            (ii)  if to the Company:

                  Cell Genesys, Inc.
                  500 Forbes Boulevard
                  South San Francisco, California 94080
                  Attention: Matthew J. Pfeffer
                  Telephone: (650) 266-3000
                  Fax: (650) 266-3010

                  With a copy to:

                  Wilson Sonsini Goodrich & Rosati, PC
                  650 Page Mill Road
                  Palo Alto, California 94304-1050
                  Attention: Herbert P. Fockler, Esq.
                  Telephone: (650) 493-9300
                  Fax: (650) 493-6811

All such notices and communications shall be deemed to have been duly given: at
the time delivered by hand, if personally delivered; five Business Days after
being deposited in the mail, postage prepaid, if mailed; when answered back, if
telexed; when receipt acknowledged, if transmitted by facsimile; and on the next
Business Day, if timely delivered to an air courier guaranteeing overnight
delivery.

            (f)   Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the successors and assigns of each of the
parties, including without limitation and without the need for an express
assignment, subsequent Holders of Transfer Restricted Securities; provided,
however, that (i) this Agreement shall not inure to the benefit of or be binding
upon a successor or assign of a Holder unless and to the extent such successor
or assign

                        - 19 -
<PAGE>

acquired Transfer Restricted Securities from such Holder and (ii) nothing
contained herein shall be deemed to permit any assignment, transfer or other
disposition of Transfer Restricted Securities in violation of the terms of the
Purchase Agreement or the Indenture.

                  If any transferee of any Holder shall acquire Transfer
Restricted Securities, in any manner, whether by operation of law or otherwise,
such Transfer Restricted Securities shall be held subject to all of the terms of
this Agreement, and by taking and holding such Transfer Restricted Securities
such person shall be conclusively deemed to have agreed to be bound by and to
perform all of the terms and provisions of this Agreement.

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

            (h)   Securities Held by the Company or Its Affiliates. Whenever the
consent or approval of Holders of a specified percentage of Transfer Restricted
Securities is required hereunder, Transfer Restricted Securities held by the
Company or its Affiliates shall not be counted in determining whether such
consent or approval was given by the Holders of such required percentage.

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

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

            (k)   Severability. If any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held invalid, illegal
or unenforceable, the validity, legality and enforceability of any such
provision in every other respect and of the remaining provisions contained
herein shall not be affected or impaired thereby.

            (l)   Entire Agreement. This Agreement is intended by the parties as
a final expression of their agreement and intended to be a complete and
exclusive statement of the agreement and understanding of the parties hereto in
respect of the subject matter contained herein. There are no restrictions,
promises, warranties or undertakings, other than those set forth or referred to
herein with respect to the registration rights granted by the Company with
respect to the Transfer Restricted Securities. This Agreement supersedes all
prior agreements and understandings between the parties with respect to such
subject matter.

                                     - 20 -
<PAGE>

      IN WITNESS WHEREOF, the parties have executed this Registration Rights
Agreement as of the date first written above.

Cell Genesys, Inc.

By:   /s/ Matthew J. Pfeffer
      -------------------------------
      Name:  Matthew J. Pfeffer
      Title: Vice President and Chief
             Financial Officer

J.P. Morgan Securities Inc.
Lehman Brothers Inc.

Acting severally on behalf of themselves and the several initial purchasers
named in Schedule I to the Purchase Agreement

By:     J.P. Morgan Securities Inc.

By:   /s/ Shelly D. Guyer
      -------------------------------
      Name:  Shelly D. Guyer
      Title: Vice President

By:     Lehman Brothers Inc.

By:   /s/ Victoria Hale
      -------------------------------
      Name:  Victoria Hale
      Title: Vice President

                [Signature Page to Registration Rights Agreement]

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