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	EXHIBIT 10.1

	AMENDMENT TO 

VENTURE FINANCIAL GROUP, INC.

EMPLOYMENT AGREEMENT

Ken F. Parsons, Sr.

     This SECOND AMENDMENT dated effective September 26, 2006 amends the Employment Agreement by and among Venture Financial Group, Inc., Venture Bank, and Ken F. Parsons, Sr. dated as of January 1, 2004 (the “Employment Agreement”).

	1.     	Section 1 of the Employment Agreement is amended to read:
	 
	 	“1. Employment. Parsons agrees to serve the Company as Chief Executive Officer, Chairman of the Board of Directors, and Director. Parsons also agrees to serve in other additionally associated capacities as may be assigned by the Company's Board of Directors ("Board"), the duties of which are consistent with those normally performed by a Chief Executive Officer, Chairman, or Director. The Board will appoint/elect Parsons to serve as Chief Executive Officer, and a member of the Executive Committee of the Company. The Board will nominate Parsons as a Director of the Company and use their best efforts to have him appointed/elected. The Board will appoint/elect Parsons to serve as Chairman, and a member of the Executive Committee of the Bank. Parsons shall remain in these positions through June 30, 2007 on a full-time basis, and then remain in these positions part-time, and continue to serve as an employee on a part-time basis (approximately 50%) until his retirement or until terminated as provided herein. As a part- time employee, he will undertake special projects and implement strategic initiatives, at the direction of the Board of Directors.”
	 
	2.     	Except as specifically set forth herein, the Employment Agreement as previously executed shall continue in full force and effect as written.
	 

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

	VENTURE FINANCIAL GROUP, INC. 	 	EXECUTIVE 
	 
	 
	By: 	 	/s/ Larry Schorno 	 	/s/ Ken F. Parsons, Sr. 
	 	 	Larry Schorno 	 	Ken F. Parsons, Sr. 
	 	 	Chairman of the Compensation Committee 	 	 
	 
	VENTURE BANK 	 	 
	 
	 
	By: 	 	/s/ Larry Schorno 	 	 
	 	 	Larry Schorno 	 	 
	 	 	Chairman of the Compensation CommitteeExhibit 4.1

    Exhibit
      4.1

    
      

      

    

    

       

      FIVE
        STAR QUALITY CARE, INC.

      

      and

      

      EACH
        OF THE GUARANTORS NAMED HEREIN

      

      and

      

      U.S.
        BANK NATIONAL ASSOCIATION

      

      as
        Trustee

      __________________________________________

       

      INDENTURE

       

      Dated
        as
        of October 18, 2006

      __________________________________________

      

      $126,500,000
        Principal Amount

       

      3.75%
        Convertible Senior Notes due 2026

       

      

      

      
        

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

                                          CROSS-REFERENCE
        TABLE

       

      

        
          	
                  TIA

                  Section

                	
                  Indenture

                    Section  

                
	
                  310(a)(1)

                	
                  7.10

                
	
                      
                      (a)(2)

                	
                  7.10

                
	
                      
                      (a)(3)

                	
                  N.A.

                
	
                        
                    (a)(4)

                	
                  N.A.

                
	
                        
                    (a)(5)

                	
                  N.A.

                
	
                     
                       (b)

                	
                  7.08;
                    7.10; 12.02

                
	
                    
                        (c)

                	
                  N.A.

                
	
                  311(a)

                	
                  7.11

                
	
                    
                        (b)

                	
                  7.11

                
	
                    
                        (c)

                	
                  N.A.

                
	
                  312(a)

                	
                  2.05

                
	
                     
                       (b)

                	
                  12.03

                
	
                     
                       (c)

                	
                  12.03

                
	
                  313(a)

                	
                  7.06

                
	
                    
                        (b)(1)

                	
                  N.A.

                
	
                      
                      (b)(2)

                	
                  7.06

                
	
                     
                       (c)

                	
                  7.06;
                    12.02

                
	
                      
                      (d)

                	
                  7.06

                
	
                  314(a)

                	
                  4.03

                
	
                        
                    (b)

                	
                  N.A.

                
	
                        
                    (c)(1)

                	
                  12.04

                
	
                        
                    (c)(2)

                	
                  12.04

                
	
                        
                    (c)(3)

                	
                  N.A.

                
	
                        
                    (d)

                	
                  N.A.

                
	
                        
                    (e)

                	
                  12.05

                
	
                        
                    (f)

                	
                  N.A.

                
	
                  315(a)

                	
                  7.01(B)

                
	
                        
                    (b)

                	
                  7.05;
                    12.02

                
	
                        
                    (c)

                	
                  7.01(A)

                
	
                        
                    (d)

                	
                  7.01(C)

                
	
                        
                    (e)       

                	
                  6.11

                
	
                  316(a)
                    (last sentence) 

                	
                  2.09

                
	
                        
                    (a)(1)(A)

                	
                  6.05

                
	
                        
                    (a)(1)(B)

                	
                  6.04

                
	
                        
                    (a)(2)

                	
                  N.A.

                
	
                        
                    (b)

                	
                  6.07

                
	
                        
                    (c)

                	
                  N.A.

                
	
                  317(a)(1)

                	
                  6.08

                
	
                        
                    (a)(2)

                	
                  6.09

                
	
                        
                    (b)

                	
                  2.04

                
	
                  318(a)

                	
                  12.01

                

        

        

          
            
              
              

            

            
              I

              
                

              

            

            
              
              

            

          

      

      TABLE
        OF CONTENTS

       

       

      
        
          	 	 	
                  Page

                
	
                  I.

                	
                  DEFINITIONS
                    AND INCORPORATION BY REFERENCE

                	
                  1

                
	 	 	 
	 	
                  1.01
                    Definitions.

                	
                  1

                
	 	
                  1.02
                    Other Definitions.

                	
                  6

                
	 	
                  1.03
                    Incorporation by Reference of Trust Indenture Act.

                	
                  7

                
	 	
                  1.04
                    Rules of Construction.

                	
                  7

                
	 	 	 
	
                  II.

                	
                  THE
                    SECURITIES

                	
                  8

                
	 	 	 
	 	
                  2.01
                    Form and Dating.

                	
                  8

                
	 	
                  2.02
                    Execution and Authentication.

                	
                  8

                
	 	
                  2.03
                    Registrar, Paying Agent and Conversion Agent.

                	
                  9

                
	 	
                  2.04
                    Paying Agent to Hold Money in Trust.

                	
                  10

                
	 	
                  2.05
                    Securityholder Lists.

                	
                  10

                
	 	
                  2.06
                    Transfer and Exchange.

                	
                  10

                
	 	
                  2.07
                    Replacement Securities.

                	
                  11

                
	 	
                  2.08
                    Outstanding Securities.

                	
                  11

                
	 	
                  2.09
                    Securities Held by the Company or an Affiliate.

                	
                  12

                
	 	
                  2.10
                    Temporary Securities.

                	
                  12

                
	 	
                  2.11
                    Cancellation.

                	
                  12

                
	 	
                  2.12
                    Defaulted Interest.

                	
                  13

                
	 	
                  2.13
                    CUSIP Numbers.

                	
                  13

                
	 	
                  2.14
                    Deposit of Moneys.

                	
                  13

                
	 	
                  2.15
                    Book-Entry Provisions for Global Securities.

                	
                  14

                
	 	
                  2.16
                    Special Transfer Provisions.

                	
                  14

                
	 	
                  2.17
                    Restrictive Legends.

                	
                  16

                
	 	
                  2.18
                    Ranking.

                	
                  16

                
	 	 	 
	
                  III.

                	
                  REDEMPTION
                    AND REPURCHASE

                	
                  17

                
	 	 	 
	 	
                  3.01
                    Right of Redemption.

                	
                  17

                
	 	
                  3.02
                    Notices to Trustee.

                	
                  17

                
	 	
                  3.03
                    Selection of Securities to Be Redeemed.

                	
                  18

                
	 	
                  3.04
                    Notice of Redemption.

                	
                  18

                
	 	
                  3.05
                    Effect of Notice of Redemption.

                	
                  19

                
	 	
                  3.06
                    Deposit of Redemption Price.

                	
                  20

                
	 	
                  3.07
                    Securities Redeemed in Part.

                	
                  20

                
	 	
                  3.08
                    Purchase of Securities at Option of the Holder.

                	
                  20

                
	 	
                  3.09
                    Repurchase at Option of Holder Upon a Fundamental Change.

                	
                  24

                
	 	 	 
	
                  IV.

                	
                  COVENANTS

                	
                  31

                
	 	 	 
	 	
                  4.01
                    Payment of Securities.

                	
                  31

                

        

        
          
            
            

          

          
            -i-

            
              

            

          

          
            
            

          

        

        

        
          	 	
                  4.02
                    Maintenance of Office or Agency.

                	
                  31

                
	 	
                  4.03
                    Rule 144A Information and Annual Reports.

                	
                  32

                
	 	
                  4.04
                    Compliance Certificate.

                	
                  33

                
	 	
                  4.05
                    Stay, Extension and Usury Laws.

                	
                  33

                
	 	
                  4.06
                    Corporate Existence.

                	
                  34

                
	 	
                  4.07
                    Notice of Default.

                	
                  34

                
	 	
                  4.08
                    Further Instruments and Acts.

                	
                  34

                
	 	
                  4.09
                    Additional Interest Notice.

                	
                  34

                
	 	 	 
	
                  V.

                	
                  SUCCESSORS

                	
                  34

                
	 	 	 
	 	
                  5.01
                    When Company May Merge, etc.

                	
                  34

                
	 	
                  5.02
                    Successor Substituted.

                	
                  35

                
	 	 	 
	
                  VI.

                	
                  DEFAULTS
                    AND REMEDIES

                	
                  35

                
	 	 	 
	 	
                  6.01
                    Events of Default.

                	
                  35

                
	 	
                  6.02
                    Acceleration.

                	
                  37

                
	 	
                  6.03
                    Other Remedies.

                	
                  38

                
	 	
                  6.04
                    Waiver of Past Defaults.

                	
                  38

                
	 	
                  6.05
                    Control by Majority.

                	
                  38

                
	 	
                  6.06
                    Limitation on Suits.

                	
                  39

                
	 	
                  6.07
                    Rights of Holders to Receive Payment.

                	
                  39

                
	 	
                  6.08
                    Collection Suit by Trustee.

                	
                  39

                
	 	
                  6.09
                    Trustee May File Proofs of Claim.

                	
                  40

                
	 	
                  6.10
                    Priorities.

                	
                  40

                
	 	
                  6.11
                    Undertaking for Costs.

                	
                  40

                
	 	 	 
	
                  VII.

                	
                  TRUSTEE

                	
                  41

                
	 	 	 
	 	
                  7.01
                    Duties of Trustee.

                	
                  41

                
	 	
                  7.02
                    Rights of Trustee.

                	
                  42

                
	 	
                  7.03
                    Individual Rights of Trustee.

                	
                  43

                
	 	
                  7.04
                    Trustee’s Disclaimer.

                	
                  43

                
	 	
                  7.05
                    Notice of Defaults.

                	
                  43

                
	 	
                  7.06
                    Reports by Trustee to Holders.

                	
                  44

                
	 	
                  7.07
                    Compensation and Indemnity.

                	
                  44

                
	 	
                  7.08
                    Replacement of Trustee.

                	
                  45

                
	 	
                  7.09
                    Successor Trustee by Merger, etc.

                	
                  46

                
	 	
                  7.10
                    Eligibility; Disqualification.

                	
                  46

                
	 	
                  7.11
                    Preferential Collection of Claims Against Company.

                	
                  46

                
	 	 	 
	
                  VIII.

                	
                  DISCHARGE
                    OF INDENTURE

                	
                  46

                
	 	 	 
	 	
                  8.01
                    Termination of the Obligations of the Company.

                	
                  46

                
	 	
                  8.02
                    Application of Trust Money.

                	
                  47

                
	 	
                  8.03
                    Repayment to Company.

                	
                  47

                
	 	
                  8.04
                    Reinstatement.

                	
                  47

                
	 	 	 

        

        
          
            
            

          

          
            -ii-

            
              

            

          

          
            
            

          

        

        

        
          	
                  IX.

                	
                  AMENDMENTS

                	
                  48

                
	 	 	 
	 	
                  9.01
                    Without Consent of Holders.

                	
                  48

                
	 	
                  9.02
                    With Consent of Holders.

                	
                  48

                
	 	
                  9.03
                    Compliance with Trust Indenture Act.

                	
                  50

                
	 	
                  9.04
                    Revocation and Effect of Consents.

                	
                  50

                
	 	
                  9.05
                    Notation on or Exchange of Securities.

                	
                  50

                
	 	
                  9.06
                    Trustee Protected.

                	
                  50

                
	 	
                  9.07
                    Effect of Supplemental Indentures.

                	
                  50

                
	 	 	 
	
                  X.

                	
                  CONVERSION

                	
                  51

                
	 	 	 
	 	
                  10.01
                    Conversion Privilege; Restrictive Legends.

                	
                  51

                
	 	
                  10.02
                    Conversion Procedure.

                	
                  51

                
	 	
                  10.03
                    Fractional Shares.

                	
                  53

                
	 	
                  10.04
                    Taxes on Conversion.

                	
                  53

                
	 	
                  10.05
                    Company to Provide Stock.

                	
                  53

                
	 	
                  10.06
                    Adjustment of Conversion Rate.

                	
                  53

                
	 	
                  10.07
                    No Adjustment.

                	
                  59

                
	 	
                  10.08
                    Other Adjustments.

                	
                  61

                
	 	
                  10.09
                    Adjustments for Tax Purposes.

                	
                  61

                
	 	
                  10.10
                    Notice of Adjustment.

                	
                  61

                
	 	
                  10.11
                    Notice of Certain Transactions.

                	
                  61

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

                	
                  62

                
	 	
                  10.13
                    Trustee’s Disclaimer.

                	
                  63

                
	 	
                  10.14
                    Rights Distributions Pursuant to Shareholders’ Rights
                    Plans.

                	
                  64

                
	 	
                  10.15
                    Increased Conversion Rate Applicable to Certain Notes Surrendered
                    in
                    Connection With Make-Whole Fundamental Changes.

                	
                  64

                
	 	 	 
	
                  XI.

                	
                  SUBSIDIARY
                    GUARANTEES

                	
                  67

                
	 	 	 
	 	
                  11.01
                    Guarantees.

                	
                  67

                
	 	
                  11.02
                    Limitation on Guarantor Liability.

                	
                  68

                
	 	
                  11.03
                    Execution and Delivery of Subsidiary Guarantees

                	
                  68

                
	 	
                  11.04
                    Release, Discharge Upon Merger or Consoliation and
                    Termination.

                	
                  68

                
	 	 	 
	
                  XII.

                	
                  MISCELLANEOUS

                	
                  70

                
	 	 	 
	 	
                  12.01
                    Trust Indenture Act Controls.

                	
                  70

                
	 	
                  12.02
                    Notices.

                	
                  70

                
	 	
                  12.03
                    Communication by Holders with Other Holders.

                	
                  71

                
	 	
                  12.04
                    Certificate and Opinion as to Conditions Precedent.

                	
                  71

                
	 	
                  12.05
                    Statements Required in Certificate or Opinion.

                	
                  72

                
	 	
                  12.06
                    Rules by Trustee and Agents.

                	
                  72

                
	 	
                  12.07
                    Legal Holidays.

                	
                  72

                
	 	
                  12.08
                    Duplicate Originals.

                	
                  72

                

        

        
          
            
            

          

          
            -iii-

            
              

            

          

          
            
            

          

        

        

        
          	 	
                  12.09
                    Governing Law.

                	
                  72

                
	 	
                  12.10
                    No Adverse Interpretation of Other Agreements.

                	
                  73

                
	 	
                  12.11
                    Successors.

                	
                  73

                
	 	
                  12.12
                    Separability.

                	
                  73

                
	 	
                  12.13
                    Table of Contents, Headings, etc.

                	
                  73

                
	 	
                  12.14
                    Calculations in Respect of the Securities.

                	
                  73

                

        

        

        

      

       

      
        	
                Exhibit
                  A

                 

              	
                -

                 

              	
                Form
                  of Global Security

                 

              
	
                Exhibit
                  B-1

                 

              	
                -

                 

              	
                Form
                  of Private Placement Legend

                 

              
	
                Exhibit
                  B-2

                 

              	
                -

                 

              	
                Form
                  of Legend for Global Security

                 

              
	
                Exhibit
                  B-3

                 

              	
                -

                 

              	
                Form
                  of Legend Regarding Registration Rights Agreement and Subsidiary
                  Guarantees

                 

              
	
                Exhibit
                  C

                 

              	
                -

                 

              	
                Form
                  of Notice of Transfer Pursuant to Registration Statement

                 

              
	
                Exhibit
                  D

                 

              	
                -

                 

              	
                Form
                  of Opinion of Counsel in Connection with Registration of
                  Securities

                 

              
	
                Exhibit
                  E

                 

              	
                -

                 

              	
                Form
                  of Subsidiary Guarantee

                 

              
	
                Exhibit
                  F

                 

              	
                -

                 

              	
                Form
                  of Supplemental Indenture to be Delivered by Subsequent
                  Guarantors

                 

              
	
                Schedule
                  1

                 

              	
                -

                 

              	
                Schedule
                  of Guarantors

                 

              

      

      
        
          
          

        

        
          -iv-

          
            

          

        

        
          
          

        

      

      INDENTURE,
        dated
        as of October 18, 2006, among Five Star Quality Care, Inc., a Maryland
        corporation (the “Company”),
        each
        of the Guarantors named in Schedule
        1
        hereto
        and U.S. Bank National Association, as trustee (the “Trustee”).

       

      Each
        party agrees as follows for the benefit of the other parties and for the
        equal
        and ratable benefit of the Holders of the Company’s 3.75% Convertible Senior
        Notes due 2026 (the “Securities”).

       

       

      I. DEFINITIONS
        AND INCORPORATION BY REFERENCE

       

      1.01 Definitions.

       

      The
        term
“additional
        interest”
has
        the
        meaning ascribed to it in the Registration Rights Agreement.

       

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

       

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

       

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

       

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

       

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

       

      “Change
        in Control Make-Whole Fundamental Change”
        means
        a
        Change
        in Control (other than an Acquisition of Voting Control).

       

      “Closing
        Sale Price”
means
        the price of a share of Common Stock on the relevant date, determined (a)
        on the
        basis of the closing sale price per share of Common Stock (or if no closing
        sale
        price per share of Common Stock is reported, the average of the bid and ask
        prices per share of Common Stock or, if more than one in either case, the
        average of the average bid and the average ask prices per share of Common
        Stock)
        on such date on the U.S. principal national securities exchange on which
        the
        Common Stock is listed; or (b) if the Common Stock is not listed on a U.S.
        national securities exchange, as reported by the National Association of
        Securities Dealers Automated Quotation System; or (c) if not so quoted, as
        reported by Pink Sheets or a similar organization. In the absence of a
        quotation, the Closing Sale Price shall be the average of the mid-point of
        the
        last bid and ask prices for the Common Stock on the relevant

       

      
        
          
          

        

        
          -1-

          
            

          

        

        
          
          

        

      

      date
        from
        each of at least three nationally recognized independent investment banking
        firms selected by the Company for this purpose.

       

      “Common
        Stock”
means
        the common shares, $0.01 par value per share, of the Company, or such other
        Capital Stock of the Company into which the Company’s common stock is
        reclassified or changed.

       

      “Common
        Stock Change Make-Whole Fundamental Change”
means
        any transaction or series of related transactions in connection with which
        (whether by means of an exchange offer, liquidation, tender offer,
        consolidation, merger, combination, reclassification, recapitalization, asset
        sale, lease of assets or otherwise) the Common Stock is exchanged for, converted
        into, acquired for or constitutes solely the right to receive other securities,
        other property, assets or cash (other than any transaction or series of related
        transactions as a result of which the notes, pursuant to Section
        10.12,
        become
        convertible solely into consideration 90% or more of which (other than cash
        payments for fractional shares or pursuant to statutory appraisal rights)
        will
        consist of common stock and any associated rights traded on a US national
        securities exchange (or which will be so traded when issued or exchanged
        in
        connection with such transaction or series of transactions)).

       

      “Company”
means
        the party named as such above until a successor replaces it pursuant to the
        applicable provision hereof and thereafter means the successor. The foregoing
        sentence shall likewise apply to any such successor or subsequent
        successor.

       

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

       

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

       

      “Conversion
        Rate” means
        the
        number of shares of Common Stock issuable upon conversion of a Security per
        $1,000 principal amount, which Conversion Rate shall initially be 76.9231
        shares
        of Common Stock per $1,000 principal amount of Securities, subject to adjustment
        as provided in Article
        X.

       

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

       

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

       

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

       

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

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

      “Guarantee”
means
        a
        direct or indirect guarantee by any Person of any Indebtedness of any other
        Person and includes, without limitation, any obligation, direct or indirect,
        contingent or otherwise, of such Person (1) to purchase or pay (or advance
        or
        supply funds for the purchase or payment of) Indebtedness of such other Person
        (whether arising by virtue of partnership arrangements or by arrangements
        or
        agreements to keep-well, to purchase assets, goods, securities or services
        (unless such purchase arrangements or agreements are on arm’s-length terms and
        are entered into in the ordinary course of business), to take-or-pay or to
        maintain financial statement conditions or otherwise); or (2) entered into
        for
        purposes of assuring in any other manner the obligee of such Indebtedness
        of the
        payment thereof or to protect such obligee against loss in respect thereof
        (in
        whole or in part).

       

      “Guarantors”
means
        each party named in Schedule 1 hereto until a successor replaces it pursuant
        to
        the applicable provision hereof and thereafter means the successor. The
        foregoing sentence shall likewise apply to any such successor or subsequent
        successor.

       

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

       

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

       

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

       

      “Initial
        Purchasers means
        UBS
        Securities LLC, RBC Capital Markets Corporation, Wachovia Capital Markets,
        LLC,
        Stifel, Nicolaus & Company, Incorporated, Davenport & Company LLC and
        Ferris, Baker Watts, Incorporated.

       

      “Issue
        Date”
means
        October 18, 2006.

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

      “Make-Whole
        Fundamental Change”
means
        a
        Change
        in Control Make-Whole Fundamental Change or
        a
Common
        Stock Change Make-Whole Fundamental Change, in each case that occurs before
        October 20, 2011.

       

      “Market
        Disruption Event”
means
        the occurrence or existence during the one-half hour period ending on the
        scheduled close of trading on any trading day for the Common Stock of any
        material suspension or limitation imposed on trading (by reason of movements
        in
        price exceeding limits permitted by the stock exchange or otherwise) in the
        Common Stock or in any options, contracts or future contracts relating to
        the
        Common Stock.

       

      “Maturity
        Date”
means
        October 15, 2026.

       

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

       

      “Officers’
        Certificate”
means
        a
        certificate signed by two (2) Officers or by an Officer and an Assistant
        Treasurer or an Assistant Secretary of the Company.

       

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

       

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

       

      “Purchase
        Agreement”
means
        the Purchase Agreement dated October 12, 2006 among the Company, the Guarantors
        and the Initial Purchasers.

       

      “Purchase
        Notice”
means
        a
        Purchase Notice in the form set forth in the Securities.

       

      “Redemption
        Date”
means
        the date specified for Redemption of the Securities in accordance with the
        terms
        of the Securities and this Indenture.

       

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

       

      “Registration
        Rights Agreement”
means
        the Registration Rights Agreement dated as of the date hereof among the Company,
        the Guarantors and the Initial Purchasers.

       

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

       

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

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

       

      “Rights
        Agreement”
means
        that certain Rights Agreement between the Company and Wells Fargo Bank, National
        Association, as successor to Equiserve Trust Company, N.A., as rights agent,
        dated March 10, 2004, as the same may be amended, supplemented or
        superseded.

       

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

       

      “SEC”
means
        the Securities and Exchange Commission.

       

      “Securities”
means
        the 3.75% Convertible Senior Notes due 2026 issued by the Company pursuant
        to
        this Indenture.

       

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

       

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

       

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

       

      “Subsidiary
        Guarantee”
means
        the Guarantee by each Guarantor of the Company’s payment obligations under this
        Indenture and the Registration Rights Agreement and on the Securities, executed
        pursuant to the provisions of this Indenture.

       

      “TIA”
means
        the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) as amended and in
        effect from time to time.

       

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

       

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

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

       

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

       

      1.02 Other
        Definitions.

       

      
        	
                Term

                 

              	
                Defined
                  in Section

                 

              
	
                “Acquisition
                  of Voting Control”

              	
                3.09

              
	
                “Aggregate
                  Amount”

              	
                10.06

              
	
                “Applicable
                  Price”

              	
                10.15

              
	
                “Asset
                  Sale Control Change”

              	
                3.09

              
	
                “Bankruptcy
                  Law”

              	
                6.01

              
	
                “BCF
                  Adjustment Cap”

              	
                10.07

              
	
                “BCF
                  Make-Whole Cap”

              	
                10.15

              
	
                “Business
                  Day”

              	
                12.07

              
	
                “Change
                  in Control”

              	
                3.09

              
	
                “Collective
                  Election”

              	
                10.12

              
	
                “Conversion
                  Agent”

              	
                2.03

              
	
                “Conversion
                  Date”

              	
                10.02

              
	
                “Conversion
                  Shares”

              	
                10.06

              
	
                “Custodian”

              	
                6.01

              
	
                “Determination
                  Date”

              	
                10.06

              
	
                “Distribution
                  Date”

              	
                10.06

              
	
                “Effective
                  Date”

              	
                10.15

              
	
                “Event
                  of Default”

              	
                6.01

              
	
                “Ex
                  Date”

              	
                10.06

              
	
                “Expiration
                  Date”

              	
                10.06

              
	
                “Expiration
                  Time”

              	
                10.06

              
	
                “Fundamental
                  Change”

              	
                3.09

              
	
                “Fundamental
                  Change Notice”

              	
                3.09

              
	
                “Fundamental
                  Change Repurchase Date”

              	
                3.09

              
	
                “Fundamental
                  Change Repurchase Price”

              	
                3.09

              
	
                “Fundamental
                  Change Repurchase Right”

              	
                3.09

              
	
                “Global
                  Security”

              	
                2.01

              
	
                “Legal
                  Holiday”

              	
                12.07

              
	
                “Listed
                  Stock Business Combination”

              	
                3.09

              
	
                “Make-Whole
                  Applicable Increase”

              	
                10.15

              
	
                “Make-Whole
                  Conversion Period”

              	
                10.15

              
	
                “Make-Whole
                  Consideration”

              	
                10.15

              
	
                “Notice
                  of Default”

              	
                6.01

              
	
                “Option
                  Purchase Date”

              	
                3.08

              
	
                “Option
                  Purchase Notice”

              	
                3.08

              
	
                “Option
                  Purchase Price”

              	
                3.08

              

      

      
        
          
          

        

        
          -6-

          
            

          

        

        
          
          

        

      

      

       

      
        	
                “Participants”

              	
                2.15

              
	
                “Paying
                  Agent”

              	
                2.03

              
	
                “Physical
                  Securities”

              	
                2.01

              
	
                “Private
                  Placement Legend”

              	
                2.17

              
	
                “Purchase
                  at Holder’s Option”

              	
                3.01

              
	
                “Purchased
                  Shares”

              	
                10.06

              
	
                “Redemption”

              	
                3.01

              
	
                “Reference
                  Property”

              	
                10.12

              
	
                “Registrar”

              	
                2.03

              
	
                “Repurchase
                  Upon Fundamental Change”

              	
                3.01

              
	
                “Resale
                  Restriction Termination Date”

              	
                2.17

              
	
                “Rights”

              	
                10.06

              
	
                “Sale
                  and leaseback”

              	
                3.09

              
	
                “Termination
                  of Trading”

              	
                3.09

              
	
                “Underlying
                  Shares”

              	
                10.06

              
	 	 

      

      1.03 Incorporation
        by Reference of Trust Indenture Act.

       

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

       

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

       

      “Commission”
means
        the SEC;

      “indenture
        securities”
means
        the Securities;

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

      “indenture
        to be qualified”
means
        this Indenture;

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

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

       

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

       

      1.04 Rules
        of Construction.

       

      Unless
        the context otherwise requires:

       

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

       

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

       

      (iii) “or”
is
        not exclusive;

       

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

       

      
        
          
          

        

        
          -7-

          
            

          

        

        
          
          

        

      

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

       

      (vi) provisions
        apply to successive events and transactions;

       

      (vii) the
        term
“interest”
        includes additional interest, unless the context otherwise requires or, in
        the
        case of additional interest, unless the terms of the Registration Rights
        Agreement provide otherwise;

       

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

       

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

       

       

      II. THE
        SECURITIES

       

      2.01 Form
        and Dating.

       

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

       

      Securities
        offered and sold in reliance on Rule 144A shall be issued initially in the
        form
        of one or more Global Securities, substantially in the form set forth in
        Exhibit A
        (the
“Global
        Security”),
        deposited with the Trustee, as custodian for the Depositary, duly executed
        by
        the Company and authenticated by the Trustee as hereinafter provided and
        bearing
        the legends set forth in Exhibits B-1
        and
        B-2.
        The
        aggregate principal amount of the Global Security may from time to time be
        increased or decreased by adjustments made on the records of the Trustee,
        as
        custodian for the Depositary, as hereinafter provided; provided,
        that in
        no event shall the aggregate principal amount of the Global Security or
        Securities exceed $126,500,000.

       

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

       

      The
        Securities shall bear the legends set forth in Exhibit
        B-3.

       

      2.02 Execution
        and Authentication.

       

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

       

      
        
          
          

        

        
          -8-

          
            

          

        

        
          
          

        

      

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

       

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

       

      Upon
        a
        written order of the Company signed by one Officer of the Company, the Trustee
        shall authenticate Securities for original issue in the aggregate principal
        amount of $126,500,000. The aggregate principal amount of Securities outstanding
        at any time may not exceed $126,500,000 except as provided in this Section 2.02.

       

      Upon
        a
        written order of the Company signed by two (2) Officers or by an Officer
        and an
        Assistant Treasurer of the Company, the Trustee shall authenticate Securities
        not bearing the Private Placement Legend to be issued to the transferee when
        sold pursuant to an effective registration statement under the Securities
        Act as
        set forth in Section 2.16(B).

       

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

       

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

       

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

       

      2.03 Registrar,
        Paying Agent and Conversion Agent.

       

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

       

      
        
          
          

        

        
          -9-

          
            

          

        

        
          
          

        

      

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

       

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

       

      2.04 Paying
        Agent to Hold Money in Trust.

       

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

       

      2.05 Securityholder
        Lists.

       

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

       

      2.06 Transfer
        and Exchange.

       

      Subject
        to Sections
        2.15
        and
2.16
        hereof,
        where Securities are presented to the Registrar with a request to register
        their
        transfer or to exchange them for an equal principal amount of Securities
        of
        other authorized denominations, the Registrar shall register the transfer
        or
        make the exchange if its requirements for such transaction are met. To permit
        registrations of transfer and exchanges, the Trustee shall authenticate
        Securities at the Registrar’s request or upon the Trustee’s receipt of a Company
        Order therefor. The Company or the Trustee, as the case may be, shall not
        be
        required to register the transfer of or exchange any Security (i) for a period
        of fifteen (15) days before selecting, pursuant to Section
        3.03,
        Securities to be redeemed or (ii) during a period beginning at the opening
        of
        business fifteen (15) days before the mailing of a notice of redemption of
        the
        Securities selected for Redemption under Section 3.04
        and
        ending at the close of business on the day of such mailing or (iii) that
        has
        been selected for Redemption or for which a Purchase Notice has been delivered,
        and not withdrawn, in accordance with this Indenture, except the unredeemed
        or
        unrepurchased portion of Securities being redeemed or repurchased in
        part.

       

      
        
          
          

        

        
          -10-

          
            

          

        

        
          
          

        

      

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

       

      2.07 Replacement
        Securities.

       

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

       

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

       

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

       

      2.08 Outstanding
        Securities.

       

      Securities
        outstanding at any time are all the Securities authenticated by the Trustee
        except for those converted, those cancelled by it, those delivered to it
        for
        cancellation and those described in this Section 2.08
        as not
        outstanding. Except to the extent provided in Section
        2.09,
        a
        Security does not cease to be outstanding because the Company or one of its
        Subsidiaries or Affiliates holds the Security.

       

      If
        a
        Security is replaced pursuant to Section 2.07,
        it
        ceases to be outstanding unless the Trustee receives proof satisfactory to
        it,
        or a court holds, that the replaced Security is held by a protected purchaser
        within the meaning of the New York Uniform Commercial Code.

       

      If
        the
        Paying Agent (other than the Company) holds on an Option Purchase Date,
        Redemption Date, Fundamental Change Repurchase Date or Maturity Date, money
        sufficient to pay the aggregate Option Purchase Price, Redemption Price,
        Fundamental Change Repurchase Price or principal amount, as the case may
        be,
        with respect to all Securities to be redeemed, purchased or paid upon Purchase
        at Holder’s Option, Redemption, Repurchase Upon Fundamental Change or on the
        Maturity Date, as the case may be, in each case plus, if applicable, accrued
        and
        unpaid interest, if any, payable as herein provided upon Purchase at Holder’s
        Option, Redemption, Repurchase Upon Fundamental Change or on the Maturity
        Date,
        then (unless there shall be a Default in the payment of such aggregate Option
        Purchase Price, Redemption Price, Fundamental Change Repurchase Price or
        principal amount, or of such accrued and unpaid interest), except as otherwise
        provided herein, on and after such date such

       

      
        
          
          

        

        
          -11-

          
            

          

        

        
          
          

        

      

      Securities
        shall be deemed to be no longer outstanding, interest on such Securities
        shall
        cease to accrue, and such Securities shall be deemed paid whether or not
        such
        Securities are delivered to the Paying Agent. Thereafter, all rights of the
        Holders of such Securities shall terminate with respect to such Securities,
        other than the right to receive the Option Purchase Price, Redemption Price,
        Fundamental Change Repurchase Price or principal amount, as the case may
        be,
        plus, if applicable, such accrued and unpaid interest, in accordance with
        this
        Indenture. Notwithstanding the foregoing, a Holder shall be entitled to convert
        a Security on the close of business on the Business Day immediately preceding
        the Maturity Date.

       

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

       

      2.09 Securities
        Held by the Company or an Affiliate.

       

      In
        determining whether the Holders of the required aggregate principal amount
        of
        Securities have concurred in any direction, waiver or consent, Securities
        owned
        by the Company or any of its Subsidiaries or Affiliates shall be considered
        as
        though not outstanding, except that, for the purposes of determining whether
        the
        Trustee shall be protected in relying on any such direction, waiver or consent,
        only Securities which the Trustee actually knows are so owned shall be so
        disregarded. Securities so owned which have been pledged in good faith may
        be
        considered to be outstanding for purposes of this Section
        2.09
        if the
        pledgee establishes, to the satisfaction of the Trustee, the pledgee’s right so
        to concur with respect to such Securities and that the pledgee is not, and
        is
        not acting at the direction or on behalf of, the Company, any other obligor
        on
        the Securities, an Affiliate of the Company or an affiliate of any such other
        obligor. In the event of a dispute as to whether the pledgee has established
        the
        foregoing, the Trustee may conclusively rely on the advice of counsel or
        on an
        Officers’ Certificate.

       

      2.10 Temporary
        Securities.

       

      Until
        definitive Securities are ready for delivery, the Company may prepare and
        the
        Trustee shall, upon receipt of a Company Order therefor, authenticate temporary
        Securities. Temporary Securities shall be substantially in the form of
        definitive Securities but may have variations that the Company considers
        appropriate for temporary Securities. Without unreasonable delay, the Company
        shall prepare and the Trustee, upon receipt of a Company Order therefor,
        shall
        authenticate definitive Securities in exchange for temporary Securities.
        Until
        so exchanged, each temporary Security shall in all respects be entitled to
        the
        same benefits under this Indenture as definitive Securities, and such temporary
        Security shall be exchangeable for definitive Securities in accordance with
        the
        terms of this Indenture.

       

      2.11 Cancellation.

       

      The
        Company at any time may deliver Securities to the Trustee for cancellation.
        The
        Registrar, Paying Agent and Conversion Agent shall forward to the Trustee
        any
        Securities surrendered to them for transfer, exchange, payment or conversion.
        The Trustee shall promptly cancel all Securities surrendered for transfer,
        exchange, payment, conversion or cancellation in

       

      
        
          
          

        

        
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      accordance
        with its customary procedures. The Company may not issue new Securities to
        replace Securities that it has paid or delivered to the Trustee for cancellation
        or that any Securityholder has converted pursuant to Article X.
        All
        cancelled Securities held by the Trustee shall be disposed of in accordance
        with
        its customary procedure for the disposal of cancelled securities, and
        certification of such disposal shall be delivered by the Trustee to the Company
        unless the Company shall, by a Company Order, direct that cancelled Securities
        be returned to it.

       

      The
        Company may, to the extent permitted by law, purchase Securities in the open
        market or by tender offer at any price or by private agreement. The Company
        may,
        at its option and to the extent permitted by law, reissue, resell or surrender
        to the Trustee for cancellation any Securities it purchased in this manner.
        Securities surrendered to the Trustee for cancellation may not be reissued
        or
        resold and will be promptly cancelled.

       

      2.12 Defaulted
        Interest.

       

      If
        and to
        the extent the Company defaults in a payment of interest on the Securities,
        the
        Company shall pay in cash the defaulted interest in any lawful manner plus,
        to
        the extent not prohibited by applicable statute or case law, interest on
        such
        defaulted interest at the rate provided in the Securities (as accrued from
        the
        date when such defaulted interest was due until paid). The Company may pay
        the
        defaulted interest (plus interest on such defaulted interest) to the persons
        who
        are Securityholders on a subsequent special record date. The Company shall
        fix
        such record date and payment date. At least fifteen (15) calendar days before
        the record date, the Company shall mail to Securityholders a notice that
        states
        the record date, payment date and amount of interest to be paid. Upon the
        due
        payment in full, interest shall no longer accrue on such defaulted interest
        pursuant to this Section
        2.12.

       

      2.13 CUSIP
        Numbers.

       

      The
        Company in issuing the Securities may use one or more “CUSIP” numbers, and, if
        so, the Trustee shall use the CUSIP numbers in notices as a convenience to
        Holders; provided,
        however,
        that no
        representation is hereby deemed to be made by the Trustee as to the correctness
        or accuracy of the CUSIP numbers printed on the notice or on the Securities;
        provided
        further,
        that
        reliance may be placed only on the other identification numbers printed on
        the
        Securities, and the effectiveness of any such notice shall not be affected
        by
        any defect in, or omission of, such CUSIP numbers. The Company shall promptly
        notify the Trustee of any change in the CUSIP numbers.

       

      2.14 Deposit
        of Moneys.

       

      Prior
        to
        10:00 A.M., New York City time, on each interest payment date, Maturity Date,
        Redemption Date, Option Purchase Date or Fundamental Change Repurchase Date,
        the
        Company shall have deposited with a Paying Agent (or, if the Company is acting
        as its own Paying Agent, segregate and hold in trust in accordance with
Section 2.04)
        money,
        in funds immediately available on such date, sufficient to make cash payments,
        if any, due on such interest payment date, Maturity Date, Redemption Date,
        Option Purchase Date or Fundamental Change Repurchase Date, as the case may
        be,
        in a timely manner which permits the Paying Agent to remit payment to the
        Holders on such interest payment date, Maturity Date,

       

      
        
          
          

        

        
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      Redemption
        Date, Option Purchase Date or Fundamental Change Repurchase Date, as the
        case
        may be.

       

      2.15 Book-Entry
        Provisions for Global Securities.

       

      (A) The
        Global Securities initially shall (i) be registered in the name of the
        Depositary or the nominee of the Depositary, (ii) be delivered to the Trustee
        as
        custodian for the Depositary and (iii) bear legends as set forth in Section 2.17.

       

      Members
        of, or participants in, the Depositary (“Participants”)
        shall
        have no rights under this Indenture with respect to any Global Security held
        on
        their behalf by the Depositary, or the Trustee as its custodian, or under
        the
        Global Security, and the Depositary may be treated by the Company, the Trustee
        and any agent of the Company or the Trustee as the absolute owner of the
        Global
        Security for all purposes whatsoever. Notwithstanding the foregoing, nothing
        herein shall prevent the Company, the Trustee or any agent of the Company
        or the
        Trustee from giving effect to any written certification, proxy or other
        authorization furnished by the Depositary or impair, as between the Depositary
        and Participants, the operation of customary practices governing the exercise
        of
        the rights of a Holder of any Security.

       

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

       

      (C) In
        connection with the transfer of a Global Security in its entirety to beneficial
        owners pursuant to Section 2.15(B),
        such
        Global Security shall be deemed to be surrendered to the Trustee for
        cancellation, and the Company shall execute, and the Trustee shall upon written
        instructions from the Company authenticate and deliver, to each beneficial
        owner
        identified by the Depositary in exchange for its beneficial interest in such
        Global Security, an equal aggregate principal amount of Physical Securities
        of
        authorized denominations.

       

      (D) Any
        Physical Security constituting a Restricted Security delivered in exchange
        for
        an interest in a Global Security pursuant to Section 2.15(B)
        shall,
        except as otherwise provided by Section 2.16,
        bear
        the Private Placement Legend.

       

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

       

      2.16 Special
        Transfer Provisions.

       

      (A) Restrictions
        on Transfer and Exchange of Global Securities.
        Notwithstanding any other provisions of this Indenture, but except as provided
        in Section
        2.15(B),
        a
        Global

       

      
        
          
          

        

        
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      Security
        may not be transferred except as a whole by the Depositary to a nominee of
        the
        Depositary or by a nominee of the Depositary to the Depositary or another
        nominee of the Depositary or by the Depositary or any such nominee to a
        successor Depositary or a nominee of such successor Depositary.

       

      (B) Private
        Placement Legend.
        Upon
        the transfer, exchange or replacement of Securities not bearing the Private
        Placement Legend, the Registrar or co-Registrar shall deliver Securities
        that do
        not bear the Private Placement Legend. Upon the transfer, exchange or
        replacement of Securities bearing the Private Placement Legend, the Registrar
        or
        co-Registrar shall deliver only Securities that bear the Private Placement
        Legend unless (i) the requested transfer is after the Resale Restriction
        Termination Date, (ii) there is delivered to the Trustee and the Company
        an
        opinion of counsel reasonably satisfactory to the Company and addressed to
        the
        Company (and expressly permitting reliance by the Trustee or accompanied
        by a
        separate letter from such counsel to the Trustee permitting the Trustee to
        rely
        on such opinion) to the effect that neither such legend nor the related
        restrictions on transfer are required in order to maintain compliance with
        the
        provisions of the Securities Act or (iii) such Security has been sold pursuant
        to an effective registration statement under the Securities Act and the Holder
        selling such Securities has delivered to the Registrar or co-Registrar a
        notice
        in the form of Exhibit C
        hereto.
        Upon the effectiveness, under the Securities Act, of the “Shelf Registration
        Statement” (as defined in the Registration Rights Agreement), the Company shall
        deliver to the Trustee a notice of effectiveness, a Global Security or Global
        Securities, which do not bear the Private Placement Legend, an authentication
        order in accordance with Section 2.02
        and an
        Opinion of Counsel in the form of Exhibit D
        hereto,
        and, if required by the Depositary, the Company shall deliver to the Depositary
        a letter of representations in a form reasonably acceptable to the
        Depositary.
        Upon the
        effectiveness of any post-effective amendment to the “Shelf Registration
        Statement” (as defined in the Registration Rights Agreement) and upon the
        effectiveness, under the Securities Act, of any “Subsequent Shelf Registration
        Statement” (as defined in the Registration Rights Agreement), the Company shall
        deliver to the Trustee a notice of effectiveness and an Opinion of Counsel
        in
        the form of Exhibit D
        hereto.
        Upon any sale, pursuant to a Shelf Registration Statement, of a beneficial
        interest in a Global Security that theretofore constituted a Restricted Security
        and delivery of appropriate evidence thereof to the Trustee, and upon any
        sale
        or transfer of a beneficial interest in connection with which the Private
        Placement Legend will be removed in accordance with this Indenture, the Trustee
        shall increase the principal amount of the Global Security that does not
        constitute a Restricted Security by the principal amount of such sale or
        transfer and likewise reduce the principal amount of the Global Security
        that
        does constitute a Restricted Security.

       

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

       

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

       

      
        
          
          

        

        
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      (D) Transfers
        of Securities Held by Affiliates.
        Any
        certificate (i) evidencing a Security that has been transferred to an Affiliate
        within two (2) years after the Issue Date, as evidenced by a notation on
        the
        assignment form for such transfer or in the representation letter delivered
        in
        respect thereof or (ii) evidencing a Security that has been acquired from
        an
        Affiliate (other than by an Affiliate) in a transaction or a chain of
        transactions not involving any public offering, shall, until two (2) years
        after
        the last date on which the Company or any Affiliate was an owner of such
        Security (or such longer period of time as may be required under the Securities
        Act or applicable state securities laws), in each case, bear the Private
        Placement Legend, unless otherwise agreed by the Company (with written notice
        thereof to the Trustee).

       

      (E) Compliance
        with Laws. Notwithstanding
        any term contained herein to the contrary, neither the Trustee nor the Registrar
        shall be under any obligation to determine or monitor whether any transfer
        or
        exchange of the Securities complies with the Securities Act or any other
        state
        or federal securities laws that may be applicable; provided, however, that
        if a
        certificate or opinion is specifically required by the express terms of this
        Section
        2.16
        to be
        delivered to the Trustee or the Registrar prior to registration of a transfer,
        the Trustee or the Registrar, as the case may be, shall be under a duty to
        receive the same, and to examine such certificate or opinion to determine
        whether it conforms on its face with the applicable requirements of this
        Section
        2.16.

       

      2.17 Restrictive
        Legends.

       

      Each
        Global Security and Physical Security that constitutes a Restricted Security
        shall bear the legend (the “Private
        Placement Legend”)
        as set
        forth in Exhibit B-1
        on
        the
        face thereof until after the second anniversary of the later of (i) the Issue
        Date and (ii) the last date on which the Company or any Affiliate was the
        owner
        of such Security (or any predecessor security) (or such shorter period of
        time
        as permitted by Rule 144(k) under the Securities Act or any successor provision
        thereunder) (or such longer period of time as may be required under the
        Securities Act or applicable state securities laws, as set forth in an Opinion
        of Counsel, unless otherwise agreed between the Company and the Holder thereof)
        (such date, the “Resale
        Restriction Termination Date”).
        The
        Trustee shall be entitled to receive, and may rely conclusively upon, an
        Officer’s Certificate signed by one Officer of the Company as to the occurrence
        of the date described in clause (ii) of the preceding sentence.

       

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

       

      2.18 Ranking.

       

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

       

      The
        indebtedness of each Guarantor arising under or in connection with this
        Indenture and every outstanding Security issued under this Indenture from
        time
        to time constitutes and will constitute a senior unsecured obligation of
        each
        Guarantor, ranking equally with other existing

       

      
        
          
          

        

        
          -16-

          
            

          

        

        
          
          

        

      

      and
        future senior unsecured indebtedness of each Guarantor and ranking senior
        to any
        existing or future subordinated indebtedness of each Guarantor. 

       

      For
        the
        avoidance of doubt, the Securities are not and will not become subordinated
        to
        the payment of existing or future unsecured indebtedness of the Company or
        any
        Guarantor.

       

       

      III. REDEMPTION
        AND REPURCHASE

       

      3.01 Redemption
        and Repurchase.

       

      (A) (i)
        Redemption of the Securities at the Company’s option, as permitted by this
        Indenture, shall be made in accordance with paragraphs
        6 and 7 of
        the
        Securities (a “Redemption”),
        (ii)
        repurchases at the Holder’s option, as permitted by this Indenture, shall be
        made in accordance with paragraph
        8
        of the
        Securities (a “Purchase
        at Holder’s Option”)
        and
        (iii) repurchases upon a Fundamental Change, as permitted by this Indenture,
        shall be made in accordance with paragraph
        9
        of the
        Securities (a “Repurchase
        Upon Fundamental Change”),
        in
        each case in accordance with the applicable provisions of this Article
        III.

       

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

       

      (C) The
        Company shall not have the right to redeem any Securities prior to October
        20,
        2011. The
        Company shall have the right, at the Company’s option, at any time, and from
        time to time, on a Redemption Date on or after October 20, 2011, to redeem
        all
        or any part of the Securities at a price payable in cash equal to the Redemption
        Price plus accrued and unpaid interest, if any, to, but excluding, the
        Redemption Date; provided,
        however,
        that in
        no event shall any Redemption Date be a Legal Holiday; provided
        further,
        that if
        the Redemption Date with respect to a Security is after a record date for
        the
        payment of an installment of interest and on or before the related interest
        payment date, then accrued and unpaid interest to, but excluding, such interest
        payment date shall be paid, on such interest payment date, to the Holder
        of
        record of such Security at the close of business on such record date, and
        the
        Holder surrendering such Security for Redemption shall not be entitled to
        any
        such interest unless such Holder was also the Holder of record of such Security
        at the close of business on such record date.

       

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

       

      3.02 Notices
        to Trustee.

       

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

       

      
        
          
          

        

        
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      3.03 Selection
        of Securities to Be Redeemed.

       

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

       

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

       

      3.04 Notice
        of Redemption.

       

      At
        least
        thirty (30) days but not more than sixty (60) days before a Redemption Date,
        the
        Company shall mail, or cause to be mailed, by first-class mail a notice of
        Redemption to each Holder whose Securities are to be redeemed, at the address
        of
        such Holder appearing in the security register.

       

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

       

      (i) the
        Redemption Date;

       

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

       

      (iii) the
        Conversion Rate and the Conversion Price;

       

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

       

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

       

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

       

      
        
          
          

        

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

       

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

       

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

       

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

       

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

       

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

       

      3.05 Effect
        of Notice of Redemption.

       

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

       

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

       

      
        
          
          

        

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

       

      Notwithstanding
        anything herein to the contrary, the Company shall not redeem any Securities
        on
        any date if the principal amount of the Securities has been accelerated,
        and
        such acceleration has not been rescinded on or prior to Redemption Date (except
        in the case of an acceleration resulting from a Default by the Company in
        the
        payment of the Redemption Price with respect to such Securities).

       

      3.06 Deposit
        of Redemption Price.

       

      Prior
        to
        10:00 A.M., New York City time on the Redemption Date, the Company shall
        deposit
        with a Paying Agent (or, if the Company is acting as its own Paying Agent,
        segregate and hold in trust in accordance with Section 2.04)
        money,
        in funds immediately available on the Redemption Date, sufficient to pay
        the
        consideration payable as herein provided upon Redemption on all Securities
        to be
        redeemed on that date. The Paying Agent shall return to the Company, as soon
        as
        practicable, any money not required for that purpose.

       

      3.07 Securities
        Redeemed in Part.

       

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

       

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

       

      3.08 Purchase
        of Securities at Option of the Holder.

       

      (A) At
        the
        option of the Holder thereof, Securities (or portions thereof that are integral
        multiples of $1,000 in principal amount) shall be purchased by the Company
        pursuant to paragraph
        8
        of the
        Securities on October 15, 2013, October 15, 2016 and October 15, 2021 (each,
        an
“Option
        Purchase Date”),
        at a
        purchase price, payable in cash, equal to one hundred percent (100%) of the
        principal amount of the Securities (or such portions thereof) to be so purchased
        (the “Option
        Purchase Price”),
        plus
        accrued and unpaid interest, if any, to, but excluding, the applicable Option
        Purchase Date (provided,
        that
        such accrued and unpaid interest shall be paid to the Holder of record of
        such
        Securities at the close of business on the record date immediately preceding
        such Option Purchase Date), upon:

       

      (i) delivery
        to the Company (if it is acting as its own Paying Agent), or to a Paying
        Agent
        designated by the Company for such purpose in the Option Purchase Notice,
        by
        such Holder, at any time from the opening of business on the date that
        is

       

      
        
          
          

        

        
          -20-

          
            

          

        

        
          
          

        

      

      twenty
        (20) Business Days prior to the applicable Option Purchase Date until the
        close
        of business on the Business Day immediately preceding the applicable Option
        Purchase Date, of a Purchase Notice, in the form set forth in the Securities
        or
        any other form of written notice substantially similar thereto, in each case,
        duly completed and signed, with appropriate signature guarantee,
        stating:

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

      (B) The
        Company shall give written notice (the “Option
        Purchase Notice”)
        on a
        date not less than twenty (20) Business Days prior to each Option Purchase
        Date
        to each Holder at its

       

      
        
          
          

        

        
          -21-

          
            

          

        

        
          
          

        

      

      address
        shown in the register of the Registrar and to each beneficial owner as required
        by applicable law. Such notice shall state: 

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

      
        
          
          

        

        
          -22-

          
            

          

        

        
          
          

        

      

      that
        remain subject to the Purchase Notice delivered by such Holder in accordance
        with this Section
        3.08,
        which
        amount must be $1,000 or an integral multiple thereof;

       

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

       

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

       

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

       

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

       

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

       

      (D) Prior
        to
        10:00 A.M., New York City time on the applicable Option Purchase Date, the
        Company shall deposit with a Paying Agent (or, if the Company is acting as
        its
        own Paying Agent, segregate and hold in trust in accordance with Section 2.04)
        money,
        in funds immediately available on the applicable Option Purchase Date,
        sufficient to pay the Option Purchase Price, plus accrued and unpaid interest,
        if any, to, but excluding, such Option Purchase Date, of all of the Securities
        that are to be purchased by the Company on such Option Purchase Date pursuant
        to
        a Purchase at Holder’s Option. The Paying Agent shall return to the Company, as
        soon as practicable, any money not required for that purpose.

       

      (E) Once
        the
        Purchase Notice has been duly delivered in accordance with this Section 3.08,
        the
        Securities to be purchased pursuant to the Purchase at Holder’s Option shall, on
        the applicable Option Purchase Date, become due and payable in accordance
        herewith, and, on and after such date (unless there shall be a Default in
        the
        payment of the consideration payable as herein provided upon a Purchase at
        Holder’s Option), except as otherwise herein provided, such Securities
        shall cease to bear interest, and all rights of the Holders of such Securities
        shall terminate, other than the right to receive, in accordance herewith,
        the
        such consideration.

       

      
        
          
          

        

        
          -23-

          
            

          

        

        
          
          

        

      

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

       

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

       

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

       

      (I) Notwithstanding
        anything herein to the contrary, no Securities shall be purchased by the
        Company
        at the option of the Holders on any Option Purchase Date if the principal
        amount
        of the Securities has been accelerated, and such acceleration has not been
        rescinded, on or prior to such Option Purchase Date (except in the case of
        an
        acceleration resulting from a Default by the Company in the payment of the
        Option Purchase Price with respect to such Securities). The Paying Agent
        will
        promptly return to the respective Holders thereof any Securities held by
        it
        during the continuance of such acceleration.

       

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

       

      3.09 Repurchase
        at Option of Holder Upon a Fundamental Change.

       

      (A) In
        the
        event any Fundamental Change (as defined below) shall occur, each Holder
        of
        Securities shall have the right (the “Fundamental
        Change Repurchase Right”),
        at
        such Holder’s option, to require the Company to repurchase all of such Holder’s
        Securities (or portions thereof that are integral multiples of $1,000 in
        principal amount), on a date selected by the Company (the “Fundamental
        Change Repurchase Date”),
        which
        Fundamental Change Repurchase Date shall be no later than thirty five (35)
        days,
        nor earlier than twenty (20) days, after the date the Fundamental Change
        Notice
        (as defined below) is mailed in accordance with Section
        3.09(B),
        at a
        price, payable in cash, equal to one hundred percent (100%) of the principal
        

       

      
        
          
          

        

        
          -24-

          
            

          

        

        
          
          

        

      

      amount
        of
        the Securities (or portions thereof) to be so repurchased (the “Fundamental
        Change Repurchase Price”),
        plus
        accrued and unpaid interest, if any, to, but excluding, the Fundamental Change
        Repurchase Date, upon:

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

      Notwithstanding
        anything herein to the contrary, any Holder that has delivered the Purchase
        Notice contemplated by this Section
        3.09(A) to
        the
        Company (if it is acting as its own Paying Agent) or to a Paying Agent
        designated by the Company for such purpose in the Fundamental Change Notice
        shall have the right to withdraw such Purchase Notice by delivery, 

       

      
        
          
          

        

        
          -25-

          
            

          

        

        
          
          

        

      

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

       

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

       

      (B) Within
        twenty (20) Business Days after the occurrence of a Fundamental Change, the
        Company shall mail, or cause to be mailed, to all Holders of record of the
        Securities at their addresses shown in the register of the Registrar, and
        to
        beneficial owners as required by applicable law, a notice (the “Fundamental
        Change Notice”)
        of the
        occurrence of such Fundamental Change and the Fundamental Change Repurchase
        Right arising as a result thereof. The Company shall deliver a copy of the
        Fundamental Change Notice to the Trustee and shall cause a copy to be published
        at the expense of the Company in The
        New York Times
        or
The
        Wall Street Journal or
        another newspaper of national circulation.

       

      Each
        Fundamental Change Notice shall state:

       

      (i) the
        events causing the Fundamental Change;

       

      (ii) the
        date
        of such Fundamental Change;

       

      (iii) the
        Fundamental Change Repurchase Date;

       

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

       

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

       

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

       

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

       

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

       

      (ix) that
        the
        Fundamental Change Repurchase Price, plus accrued and unpaid interest, if
        any,
        to, but excluding, the Fundamental Change Repurchase Date, forany Security
        as to
        which a Purchase Notice has been given and not withdrawn will be paid as
        promptly as practicable, but in no event more than the later of such Fundamental
        Change Repurchase Date and the time of delivery of the Security (together
        with
        all necessary endorsements) as described in clause
        (viii)
        above;
provided,
        however,
        that if

       

      
        
          
          

        

        
          -26-

          
            

          

        

        
          
          

        

      

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

       

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

       

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

       

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

       

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

       

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

       

      
        
          
          

        

        
          -27-

          
            

          

        

        
          
          

        

      

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

       

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

       

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

       

      (D) Prior
        to
        10:00 A.M., New York City time on a Fundamental Change Repurchase Date, the
        Company shall deposit with a Paying Agent (or, if the Company is acting as
        its
        own Paying Agent, segregate and hold in trust in accordance with Section 2.04)
        money,
        in funds immediately available on the Fundamental Change Repurchase Date,
        sufficient to pay the consideration payable as herein provided upon Repurchase
        Upon Fundamental Change for all of the Securities that are to be repurchased
        by
        the Company on such Fundamental Change Repurchase Date pursuant to a Repurchase
        Upon Fundamental Change. The Paying Agent shall return to the Company, as
        soon
        as practicable, any money not required for that purpose.

       

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

       

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

       

      (G) If
        any
        Security shall not be paid upon surrender thereof for Repurchase Upon
        Fundamental Change, the principal of, and accrued and unpaid interest on,
        such
        Security shall, 

       

      
        
          
          

        

        
          -28-

          
            

          

        

        
          
          

        

      

      until
        paid, bear interest, payable in cash, at the rate borne by such Security
        on the
        principal amount of such Security, and such Security shall continue to be
        convertible pursuant to Article
        X.

       

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

       

      (I) Notwithstanding
        anything herein to the contrary, no Securities shall be repurchased by the
        Company at the option of the Holders upon a Fundamental Change pursuant to
        this
Section
        3.09 if
        the
        principal amount of the Securities has been accelerated, and such acceleration
        has not been rescinded, on or prior to the Fundamental Change Repurchase
        Date
        (except in the case of an acceleration resulting from a Default by the Company
        in the payment of the Fundamental Change Repurchase Price with respect to
        such
        Securities). The Paying Agent will promptly return to the respective Holders
        thereof any Securities held by it during the continuance of such
        acceleration.

       

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

       

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

       

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

       

      (a) any
        “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
        Exchange Act) is or becomes the “beneficial owner” (as such term is used in Rule
        13d-3 under the Exchange Act), directly or indirectly, of fifty percent (50%)
        or
        more of the Company’s Voting Stock (such an event, an “Acquisition
        of Voting Control”);
        or

       

      (b) there
        occurs a sale (other than a “sale
        and leaseback”
        transaction (as defined below) relating to one or more senior living or other
        healthcare-related facilities), transfer, lease (the Company as lessor, but
        not
        as lessee), conveyance or other disposition of all or substantially all of
        the
        property or assets of the 

       

      
        
          
          

        

        
          -29-

          
            

          

        

        
          
          

        

      

      Company,
        or of all or substantially all of the property or assets of the Company and
        the
        Subsidiaries on a consolidated basis, to any “person” or “group” (as such terms
        are used in Sections 13(d) and 14(d) of the Exchange Act), including any
        group
        acting for the purpose of acquiring, holding, voting or disposing of securities
        within the meaning of Rule 13d-5(b)(1) under the Exchange Act (such an event,
        an
“Asset
        Sale Control Change”);
        or

       

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

       

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

       

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

       

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

       

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

       

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

       

      
        
          
          

        

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

       

      A
        “sale
        and leaseback”
        transaction means any arrangement, in the ordinary course of business and
        consistent with past practice, between the Company and/or any of the
        Subsidiaries and a real estate investment trust, bank, commercial lender
        or
        other third party that finances real estate assets, providing for the leasing
        by
        the Company and/or any of the Subsidiaries on a long-term basis of one or
        more
        senior living or other healthcare-related facilities being sold or transferred
        by the Company and/or any of the Subsidiaries to such third party. 

       

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

       

       

      IV. COVENANTS

       

      4.01 Payment
        of Securities.

       

      The
        Company shall pay all amounts due with respect to the Securities on the dates
        and in the manner provided in the Securities and this Indenture. All such
        amounts shall be considered paid on the date due if the Paying Agent holds
        (or,
        if the Company is acting as Paying Agent, the Company has segregated and
        holds
        in trust in accordance with Section 2.04)
        on that
        date money sufficient to pay the amount then due with respect to the Securities
        (unless there shall be a Default in the payment of such amounts to the
        respective Holder(s)). The Company will pay, in money of the United States
        that
        at the time of payment is legal tender for payment of public and private
        debts,
        all amounts due in cash with respect to the Securities, which amounts shall
        be
        paid (A) in the case of a Security that is in global form, by wire transfer
        of
        immediately available funds to the account designated by the Depositary or
        its
        nominee; (B) in the case of a Security that is held, other than global form,
        by
        a Holder of more than five million dollars ($5,000,000) in aggregate principal
        amount of Securities, by wire transfer of immediately available funds to
        the
        account specified by such Holder or, if such Holder does not specify an account,
        by mailing a check to the address of such Holder set forth in the register
        of
        the Registrar; and (C) in the case of a Security that is held, other than
        global
        form, by a Holder of five million dollars ($5,000,000) or less in aggregate
        principal amount of Securities, by mailing a check to the address of such
        Holder
        set forth in the register of the Registrar.

       

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

       

      4.02 Maintenance
        of Office or Agency.

       

      The
        Company will maintain, or cause to be maintained, in the Borough of Manhattan,
        The City of New York, an office or agency (which may be an office of the
        Trustee
        or an affiliate

       

      
        
          
          

        

        
          -31-

          
            

          

        

        
          
          

        

      

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

       

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

       

      The
        Company hereby designates the Corporate Trust Office of the Trustee as an
        agency
        of the Company in accordance with Section 2.03;
        and
        designates U.S. Bank National Association, c/o U.S. Bank Trust National
        Association, 100 Wall Street , Suite 1600, New York, New York 10005 as an
        agency
        in the Borough of Manhattan, The City of New York where Securities may be
        surrendered pursuant to the requirements of the first paragraph of
        this
        Section 4.02.

       

      4.03 Rule
        144A Information and Annual Reports.

       

      (A) At
        any
        time when the Company is not subject to, or is in violation of, Sections
        13 or
        15(d) of the Exchange Act, the Company and the Guarantors shall promptly
        provide
        to the Trustee and shall, upon request, provide to any Holder, beneficial
        owner
        or prospective purchaser of Securities or shares of Common Stock issued upon
        conversion of any Securities, the information required to be delivered pursuant
        to Rule 144A(d)(4) under the Securities Act to facilitate the resale of such
        Securities or shares of Common Stock pursuant to Rule 144A. The Company and
        the
        Guarantors shall take such further action as any Holder or beneficial holder
        of
        such Securities or shares of Common Stock may reasonably request in writing
        to
        the extent required from time to time to enable such Holder or beneficial
        holder
        to sell its Securities or shares of Common Stock in accordance with Rule
        144A,
        as such rule may be amended from time to time.

       

      (B) The
        Company shall deliver to the Trustee, no later than the time such report
        is
        required to be filed with the SEC pursuant to the Exchange Act (including,
        without limitation, to the extent applicable, any extension permitted by
        Rule
        12b-25 under the Exchange Act), a copy of each report the Company is required
        to
        file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act;
provided,
        however,
        that
        the Company shall not be required to deliver to the Trustee any material
        for
        which the Company has sought and received confidential treatment by the SEC;
        provided
        further,
        each
        such report will be deemed to be so delivered to the Trustee if the Company
        files such report with the SEC through the SEC’s EDGAR database no later than
        the time such report is required to be filed with the SEC pursuant to the
        Exchange Act

       

      
        
          
          

        

        
          -32-

          
            

          

        

        
          
          

        

      

      (including,
        without limitation, to the extent applicable, any extension permitted by
        Rule
        12b-25 under the Exchange Act). In the event the Company is at any time no
        longer subject to the reporting requirements of Section 13 or Section 15(d)
        of
        the Exchange Act, the Company shall continue to provide to the Trustee and,
        upon
        request, to any Holder, within the time period that the Company would have
        been
        required to file such reports with the SEC (including, without limitation,
        to
        the extent applicable, any extension permitted by Rule 12b-25 under the Exchange
        Act), annual and quarterly consolidated financial statements substantially
        equivalent to financial statements that would have been included in reports
        filed with the SEC if the Company were subject to the reporting requirements
        of
        Section 13 or Section 15(d) of the Exchange Act, including, with respect
        to
        annual information only, a report thereon by the Company’s certified independent
        public accountants as such would be required in such reports filed with the
        SEC
        and, in each case, together with a management’s discussion and analysis of
        financial condition and results of operations which would be so required.
        The
        Company also shall comply with the other provisions of TIA § 314(a). Delivery of
        such reports, information and documents to the Trustee is for informational
        purposes only, and the Trustee’s receipt thereof shall not constitute
        constructive notice of any information contained therein or determinable
        from
        information contained therein, including the Company’s compliance with any of
        its covenants hereunder (as to which the Trustee is entitled to rely exclusively
        on Officers’ Certificates).

       

      4.04 Compliance
        Certificate.

       

      The
        Company and each Guarantor (to the extent that such Guarantor is so required
        under the TIA) shall deliver to the Trustee, within ninety (90) calendar
        days
        after the end of each fiscal year of the Company, or, if earlier, by the
        date
        the Company is, or would be, required to file with the SEC the Company’s annual
        report (whether on Form 10-K under the Exchange Act or another appropriate
        form)
        for such fiscal year, an Officers’ Certificate stating whether or not the
        signatories to such Officers’ Certificate know of any Default or Event of
        Default by the Company in performing any of its obligations under this Indenture
        or the Securities. If such signatories do know of any such Default or Event
        of
        Default, then such Officers’ Certificate shall describe the Default or Event of
        Default and its status. As of the date hereof, the Company’s fiscal year end is
        December 31; and the Company shall give prompt written notice to the Trustee
        in
        the event it shall at any time change its fiscal year.

       

      4.05 Stay,
        Extension and Usury Laws.

       

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

       

      
        
          
          

        

        
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      4.06 Corporate
        Existence.

       

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

       

      4.07 Notice
        of Default.

       

      In
        the
        event that any Default or Event of Default shall occur, the Company shall
        give
        prompt written notice of such Default or Event of Default, and any remedial
        action proposed to be taken, to the Trustee. 

       

      4.08 Further
        Instruments and Acts.

       

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

       

      4.09 Additional
        Interest Notice.

       

      In
        the
        event that the Company is required to pay additional interest to holders
        of
        Securities pursuant to the Registration Rights Agreement, the Company will
        provide written notice (“Additional
        Interest Notice”)
        to the
        Trustee of its obligation to pay additional interest no later than fifteen
        (15)
        calendar days prior to the proposed payment date for the additional interest
        (or, if the applicable Event (as defined in the Registration Rights Agreement)
        giving rise to the obligation to pay such additional interest occurs on or
        after
        the fifteenth (15th) calendar day before such payment date, no later than
        the
        Business Day after the date such Event occurs). Each Additional Interest
        Notice
        shall set forth the amount of Additional Interest to be paid by the Company
        on
        such payment date. 

       

       

      V. SUCCESSORS

       

      5.01 When
        Company May Merge, etc.

       

      The
        Company shall not consolidate with, or merge with or into, or sell, transfer,
        lease, convey or otherwise dispose of all or substantially all of the property
        or assets of the Company, or all or substantially all of the property or
        assets
        of the Company and the Subsidiaries on a consolidated basis, to another person,
        whether in a single transaction or series of related transactions, unless
        (i)
        such other person is a corporation organized and existing under the laws
        of the
        United States, any State thereof or the District of Columbia; (ii) such person
        assumes by

       

      
        
          
          

        

        
          -34-

          
            

          

        

        
          
          

        

      

      supplemental
        indenture all the obligations of the Company under the Securities and this
        Indenture; and (iii) immediately after giving effect to such transaction
        or
        series of transactions, no Default or Event of Default shall exist.

       

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

       

      5.02 Successor
        Substituted.

       

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

       

       

      VI. DEFAULTS
        AND REMEDIES

       

      6.01 Events
        of Default.

       

      An
        “Event
        of Default”
occurs
        if:

       

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

       

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

       

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

       

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

       

      
        
          
          

        

        
          -35-

          
            

          

        

        
          
          

        

      

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

       

      (vi) the
        Company or any of its Subsidiaries defaults in the payment when due, after
        the
        expiration of any applicable grace period, of principal of, or premium, if
        any,
        or interest on, Indebtedness for money borrowed, in the aggregate principal
        amount then outstanding of $10.0 million dollars ($10,000,000) or more, or
        the
        acceleration of Indebtedness of the Company or any of its Subsidiaries for
        money
        borrowed in such aggregate principal amount or more so that it becomes due
        and
        payable prior to the date on which it would otherwise become due and payable
        and
        such default is not cured or waived, or such acceleration is not rescinded,
        within thirty (30) days after written notice to the Company by the Trustee
        or to
        the Company and the Trustee by Holders of at least twenty five percent (25%)
        in
        aggregate principal amount of the Securities then outstanding, each in
        accordance with this Indenture;

       

      (vii) the
        Company or any of its Subsidiaries fails to pay final judgments, the aggregate
        uninsured portion of which is at least $10.0 million dollars ($10,000,000),
        and
        such judgments are not bonded, paid or discharged within sixty (60)
        days;

       

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

       

      (A) commences
        a voluntary case,

       

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

       

      (C) consents
        to the appointment of a Custodian of it or for all or substantially all of
        its
        property, or for all or substantially all of the property of it and its
        subsidiaries on a consolidated basis, or

       

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

       

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

       

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

       

      (B) appoints
        a Custodian of the Company or any of its Significant Subsidiaries or any
        group
        of Subsidiaries that in the aggregate would constitute a

       

      
        
          
          

        

        
          -36-

          
            

          

        

        
          
          

        

      

      Significant
        Subsidiary of the Company for all or substantially all of the property of
        the
        Company or any such Significant Subsidiary or any group of Subsidiaries that
        in
        the aggregate would constitute a Significant Subsidiary of the Company, as
        the
        case may be, or

       

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

       

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

       

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

       

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

       

      6.02 Acceleration.

       

      If
        an
        Event of Default (excluding an Event of Default specified in Section 6.01(viii)
        or
        (ix)
        with
        respect to the Company (but including an Event of Default specified in
Section
        6.01(viii) or
        (ix) solely
        with respect to a Significant Subsidiary of the Company or any group of
        Subsidiaries that in the aggregate would constitute a Significant Subsidiary
        of
        the Company)) occurs and is continuing, the Trustee by written notice to
        the
        Company, or the Holders of at least twenty five percent (25%) in aggregate
        principal amount of the Securities then outstanding by written notice to
        the
        Company and the Trustee, may declare the Securities to be immediately due
        and
        payable in full. Upon such declaration, the principal of, and any premium
        and
        accrued and unpaid interest (including any additional interest) on, all
        Securities shall be due and payable immediately. If an Event of Default
        specified in Section 6.01(viii)
        or
        (ix) with
        respect to the Company (excluding, for purposes of this sentence, an Event
        of
        Default specified in Section 6.01(viii)
        or
        (ix) solely
        with respect to a Significant Subsidiary of the Company or any group of
        Subsidiaries that in the aggregate would constitute a Significant Subsidiary
        of
        the Company) occurs, the principal of, and premium, and accrued and unpaid
        interest (including any additional interest) on, all the Securities shall
        ipso
        facto become
        and be immediately due and payable without any declaration or other act on
        the
        part of the Trustee or any Holder. The Holders of a majority in aggregate
        principal amount of the Securities then outstanding by written notice to
        the
        Trustee may rescind or annul an acceleration and its consequences if (A)
        the
        rescission would

       

      
        
          
          

        

        
          -37-

          
            

          

        

        
          
          

        

      

      not
        conflict with any order or decree, (B) all existing Events of Default, except
        the nonpayment of principal, premium or interest (including additional interest)
        that has become due solely because of the acceleration, have been cured or
        waived and (C) all amounts due to the Trustee under Section
        7.07
        have
        been paid.

       

      6.03 Other
        Remedies.

       

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

       

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

       

      6.04 Waiver
        of Past Defaults.

       

      Subject
        to Sections 6.07
        and
        9.02,
        the
        Holders of a majority in aggregate principal amount of the Securities then
        outstanding may, by written notice to the Trustee, waive any past Default
        or
        Event of Default and its consequences, other than (A) a Default or Event
        of
        Default in the payment of the principal of, or premium, if any, or interest
        or
        additional interest on, any Security, or in the payment of the Redemption
        Price,
        the Option Purchase Price or the Fundamental Change Repurchase Price (or
        accrued
        and unpaid interest, if any, payable as herein provided, upon Redemption,
        Purchase at Holder’s Option or Repurchase Upon Fundamental Change), (B) a
        Default or Event of Default arising from a failure by the Company to convert
        any
        Securities into shares of Common Stock in accordance with this Indenture
        or (C)
        any Default or Event of Default in respect of any provision of this Indenture
        or
        the Securities which, under Section
        9.02,
        cannot
        be modified or amended without the consent of the Holder of each outstanding
        Security affected. When a Default or an Event of Default is waived, it is
        cured
        and ceases to exist for all purposes under this Indenture. This Section
        6.04
        shall be
        in lieu of TIA § 316(a)(1)(B), and, as permitted by the TIA, TIA § 316(a)(1)(B)
        is hereby expressly excluded from this Indenture.

       

      6.05 Control
        by Majority.

       

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

       

      
        
          
          

        

        
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      6.06 Limitation
        on Suits.

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

      6.07 Rights
        of Holders to Receive Payment.

       

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

       

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

       

      6.08 Collection
        Suit by Trustee.

       

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

       

      
        
          
          

        

        
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      6.09 Trustee
        May File Proofs of Claim.

       

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

       

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

       

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

       

      6.10 Priorities.

       

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

       

      
        	 	
                 First:

                 

              	
                to
                  the Trustee for amounts due under Section 7.07;

                 

              
	 	
                 Second:

                 

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

                 

              
	 	
                 Third:

                 

              	
                the
                  balance, if any, to the Company.

                 

              

      

      

       

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

       

      6.11 Undertaking
        for Costs.

       

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

       

      
        
          
          

        

        
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      apply
        to
        a suit by the Trustee, a suit by a Holder pursuant to Section 6.07
        or a
        suit by Holders of more than ten percent (10%) in aggregate principal amount
        of
        the outstanding Securities.

       

       

      VII. TRUSTEE

       

      7.01 Duties
        of Trustee.

       

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

       

      (B) Except
        during the continuance of an Event of Default known to the Trustee:

       

      (i) the
        Trustee need perform only those duties that are specifically set forth in
        this
        Indenture and no implied covenants or obligations shall be read into this
        Indenture against the Trustee; and

       

      (ii) in
        the
        absence of bad faith, willful misconduct or negligence on its part, the Trustee
        may conclusively rely, as to the truth of the statements and the correctness
        of
        the opinions expressed therein, upon certificates or opinions furnished to
        the
        Trustee and conforming to the requirements of this Indenture; but in the
        case of
        any such certificates or opinions which by any provision hereof are specifically
        required to be furnished to the Trustee, the Trustee shall examine the
        certificates and opinions to determine whether or not they conform to the
        requirements of this Indenture (but need not confirm or investigate the accuracy
        of mathematical calculations or other facts stated therein).

       

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

       

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

       

      (ii) the
        Trustee shall not be liable with respect to any action it takes or omits
        to take
        in good faith in accordance with a direction received by it pursuant to
Section 6.05;

       

      (iii) no
        provision of this Indenture shall require the Trustee to expend or risk its
        own
        funds or incur any financial liability in the performance of any of its duties
        hereunder, or in the exercise of any of its rights or powers, if it shall
        have
        reasonable grounds for believing that repayment of such funds or indemnity
        satisfactory to it against such risk or liability is not reasonably assured
        to
        it; and

       

      
        
          
          

        

        
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      (iv) the
        Trustee shall not be liable for any other action taken or omitted by it in
        good
        faith at the direction of the Company or the Holders of the Notes under
        circumstances in which such direction is required by the express terms of
        this
        Indenture.

       

      (D) Every
        provision of this Indenture that in any way relates to the Trustee is subject
        to
        the provisions of this Section 7.01.

       

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

       

      7.02 Rights
        of Trustee.

       

      (A) Subject
        to Section
        7.01,
        the
        Trustee may conclusively rely on any document believed by it to be genuine
        and
        to have been signed or presented by the proper person. The Trustee need not
        investigate any fact or matter stated in the document; if, however, the Trustee
        shall determine to make such further inquiry or investigation, it shall be
        entitled during normal business hours to examine the relevant books, records
        and
        premises of the Company, personally or by agent or attorney upon reasonable
        prior written notice.

       

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

       

      (C) Any
        request or direction of the Company mentioned herein shall be sufficiently
        evidenced by a Company Request or Company Order, and any resolution of the
        Board
        of Directors shall be sufficiently evidenced by a Board Resolution.

       

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

       

      (E) The
        Trustee may act through agents or attorneys and shall not be responsible
        for the
        misconduct or negligence of any agent or attorney appointed with due
        care.

       

      (F) The
        Trustee shall not be liable for any action it takes or omits to take in good
        faith which it believes to be authorized or within its discretion, rights
        or
        powers conferred upon it by this Indenture.

       

      (G) The
        Trustee shall have no duty to inquire as to the performance of the Company
        with
        respect to the covenants contained in Article IV.
        In
        addition, the Trustee shall not be deemed to have knowledge of an Event of
        Default except (i) any Default or Event of Default occurring pursuant to
        Sections 6.01(i)
        or
(ii)
        (provided that the Trustee shall have received an Option Purchase Notice
        or a
        Fundamental Change Notice in respect of the amounts payable pursuant to a
        Purchase at Holder’s Option or a Repurchase Upon Fundamental Change, as the case
        may be) or (ii) any Default or Event of Default of which a Responsible Officer
        of the Trustee shall have received written notification or obtained actual
        knowledge. Delivery of

       

      
        
          
          

        

        
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      reports,
        information and documents to the Trustee under Article IV
        (other
        than Sections 4.04
        and
4.07)
        is for
        informational purposes only and the Trustee’s receipt of the foregoing shall not
        constitute constructive notice of any information contained therein or
        determinable from information contained therein, including the Company’s
        compliance with any of its covenants hereunder (as to which the Trustee is
        entitled to rely on Officers’ Certificates).

       

      (H) Subject
        to Section 7.01(A), the Trustee shall be under no obligation to exercise
        any of
        the rights or powers vested by this Indenture at the request or direction
        of any
        of the Holders pursuant to this Indenture unless such Holders shall have
        offered
        to the Trustee security or indemnity reasonably satisfactory to the Trustee
        against the costs, expenses and liabilities which might be incurred by it
        in
        compliance with such request or direction.

       

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

       

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

       

      (K) The
        grant
        of a permissive right or power to the Trustee hereunder shall not be construed
        to impose a mandatory duty to act.

       

      7.03 Individual
        Rights of Trustee.

       

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

       

      7.04 Trustee’s
        Disclaimer.

       

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

       

      7.05 Notice
        of Defaults.

       

      If
        a
        Default or Event of Default occurs and is continuing as to which the Trustee
        has
        received written notice pursuant to the provisions of this Indenture, or
        as to
        which a Responsible Officer of the Trustee shall have actual knowledge, then
        the
        Trustee shall mail to each Holder a notice of the Default or Event of Default
        within thirty (30) days after receipt of such notice or after acquiring such
        knowledge, as applicable, unless such Default or Event of Default has been
        cured
        or waived; provided,
        however,
        that,
        except in the case of a Default or Event of Default in

       

      
        
          
          

        

        
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      payment
        of any amounts due with respect to any Security, the Trustee may withhold
        such
        notice if, and so long as it in good faith determines that, withholding such
        notice is in the best interests of Holders.

       

      7.06 Reports
        by Trustee to Holders.

       

      Within
        sixty (60) days after each May 15, beginning with May 15, 2007, the Trustee
        shall mail to each Securityholder if required by TIA § 313(a) a brief report
        dated as of such May 15 that complies with TIA § 313(c). In such event, the
        Trustee also shall comply with TIA § 313(b).

       

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

       

      7.07 Compensation
        and Indemnity.

       

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

       

      The
        Company shall indemnify each of the Trustee, each predecessor Trustee and
        their
        respective agents for, and hold each of them harmless against, any and all
        loss,
        liability, damage, claim or expense (including the reasonable fees and expenses
        of counsel and taxes other than those based upon the income of the Trustee)
        incurred by it in connection with the acceptance or administration of this
        trust
        and the performance of its duties hereunder or in connection with enforcing
        the
        provisions of this Section
        7.07,
        including the reasonable costs and expenses of defending itself against any
        claim (whether asserted by the Company, any Holder or any other Person) or
        liability in connection with the exercise or performance of any of its powers
        and duties hereunder. The Company need not pay for any settlement made without
        its consent (which shall not be unreasonably withheld). The Trustee shall
        notify
        the Company promptly of any claim for which it may seek indemnification.
        The
        Company need not reimburse any expense or indemnify against any loss or
        liability incurred by the Trustee through the Trustee’s negligence, bad faith or
        willful misconduct.

       

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

       

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

       

      
        
          
          

        

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

       

      7.08 Replacement
        of Trustee.

       

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

       

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

       

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

       

      (ii) the
        Trustee is adjudged a bankrupt or an insolvent;

       

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

       

      (iv) the
        Trustee becomes incapable of acting.

       

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

       

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

       

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

       

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

       

      
        
          
          

        

        
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      7.09 Successor
        Trustee by Merger, etc.

       

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

       

      7.10 Eligibility;
        Disqualification.

       

      There
        shall at all times be a Trustee hereunder that is a corporation organized
        and
        doing business under the laws of the United States of America or of any state
        thereof or the District of Columbia, which Trustee (A) is authorized under
        such
        laws to exercise corporate trustee power, (B) is subject to supervision or
        examination by federal or state authorities and (C) has a combined capital
        and
        surplus of at least $100 million as set forth in its most recent published
        annual report of condition. The Trustee shall comply with TIA § 310(b). Nothing
        in this Indenture shall prevent the Trustee from filing with the SEC the
        application referred to in the penultimate paragraph of TIA §
310(b).

       

      7.11 Preferential
        Collection of Claims Against Company.

       

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

       

       

      VIII. DISCHARGE
        OF INDENTURE

       

      8.01 Termination
        of the Obligations of the Company.

       

      This
        Indenture shall cease to be of further effect if (a) either (i) all outstanding
        Securities (other than Securities replaced pursuant to Section
        2.07
        hereof)
        have been delivered to the Trustee for cancellation or (ii) all outstanding
        Securities have become due and payable at their scheduled maturity or upon
        Purchase at Holder’s Option, Redemption or Repurchase Upon Fundamental Change,
        and in either case the Company irrevocably deposits, prior to the applicable
        due
        date, with the Trustee or the Paying Agent (if the Paying Agent is not the
        Company or any of its Affiliates) cash, and, if applicable as herein provided
        and in accordance herewith, such other consideration, sufficient to pay all
        amounts due and owing on all outstanding Securities (other than Securities
        replaced pursuant to Section
        2.07
        hereof)
        on the Maturity Date or an Option Purchase Date, Redemption Date or Fundamental
        Change Repurchase Date, as the case may be; (b) the Company pays to the Trustee
        all other sums payable hereunder by the Company; (c) no Default or Event
        of
        Default with respect to the Securities shall exist on the date of such deposit;
        (d) such deposit will not result in a breach or violation of, or constitute
        a
        Default or Event of Default under, this Indenture or any other agreement
        or
        instrument to which the Company is a party or by which it is bound; and (e)
        the
        Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
        Counsel, each stating that all conditions precedent provided for herein relating
        to the satisfaction and discharge of this Indenture have been complied with;
        provided,
        however,
        that
Sections
        2.02,
        2.03,
        2.04,
        2.05,
        2.06,
        2.07,
        2.08,
        2.15,
        2.16,
        2.17,
        3.05,
        3.08,
        3.09,
        4.01,
        4.02,
        4.05,
        7.07
        and
        7.08
        and

       

      
        
          
          

        

        
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      Articles VIII
        and
X
        shall
        survive any discharge of this Indenture until such time as the Securities
        have
        been paid in full and there are no Securities outstanding.

       

      8.02 Application
        of Trust Money.

       

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

       

      8.03 Repayment
        to Company.

       

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

       

      8.04 Reinstatement.

       

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

       

      
        
          
          

        

        
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      IX. AMENDMENTS

       

      9.01 Without
        Consent of Holders.

       

      The
        Company and the Trustee may enter into a supplemental indenture to amend
        or
        supplement this Indenture or the Securities without notice to or the consent
        of
        any Securityholder:

       

      (i) to
        comply
        with Sections 5.01
        and
10.12;

       

      (ii) to
        make
        any changes or modifications to this Indenture necessary in connection with
        the
        registration of the public offer and sale of the Securities under the Securities
        Act pursuant to the Registration Rights Agreement or the qualification of
        this
        Indenture under the TIA;

       

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

       

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

       

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

       

      (vi) to
        add
        Subsidiary Guarantees with respect to the Securities, or remove Subsidiary
        Guarantees as provided in this Indenture.

       

      In
        addition, the Company and the Trustee may enter into a supplemental indenture
        without the consent of Holders of the Securities to cure any ambiguity, defect,
        omission or inconsistency in this Indenture in a manner that does not,
        individually or in the aggregate with all other modifications made or to
        be made
        to the Indenture, adversely affect the rights of any Holder.

       

      9.02 With
        Consent of Holders.

       

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

       

      
        
          
          

        

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

      (k) modify
        any Subsidiary Guarantee in any manner adverse to the Holders, except removal
        of
        Guarantors as provided in this Indenture.

       

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

       

      
        
          
          

        

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

       

      9.03 Compliance
        with Trust Indenture Act.

       

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

       

      9.04 Revocation
        and Effect of Consents.

       

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

       

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

       

      9.05 Notation
        on or Exchange of Securities.

       

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

       

      9.06 Trustee
        Protected.

       

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

       

      
        
          
          

        

        
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      applicable
        to the execution and delivery of such supplemental indenture, amendment or
        waiver have been complied with.

       

      9.07 Effect
        of Supplemental Indentures.

       

      Upon
        the
        due execution and delivery of any supplemental indenture in accordance with
        this
Article
        IX,
        this
        Indenture shall be modified in accordance therewith, and such supplemental
        indenture shall form a part of this Indenture for all purposes, and, except
        as
        set forth in Sections
        9.02 and 9.04,
        every
        Holder of Securities shall be bound thereby.

       

       

      X. CONVERSION

       

      10.01 Conversion
        Privilege; Restrictive Legends.

       

      (A) Subject
        to the provisions of Article
        III,
        the
        Securities shall be convertible into shares of Common Stock in accordance
        with
        this Article
        X
        at any
        time prior to the close of business on the Business Day immediately preceding
        the Maturity Date.

       

      (B) The
        initial Conversion Rate shall be 76.9231 shares of Common Stock per $1,000
        principal amount of Securities. The Conversion Rate shall be subject to
        adjustment in accordance with Sections
        10.06
        through
10.15.

       

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

       

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

       

      10.02 Conversion
        Procedure.

       

      (A) To
        convert a Security, a Holder must satisfy the requirements of paragraph
        10
        of the
        Securities. As soon as practicable but in no event more than three Business
        Days
        after the date (the “Conversion
        Date”)
        on
        which the Holder satisfies all those requirements, the Company shall deliver
        to
        the Holder through the Conversion Agent a certificate for or, to the extent
        permissible, in book-entry form through the Depository, the number of full
        shares of Common Stock issuable upon the conversion, as provided in paragraph
        10
        of the
        Securities, and a check for the amount of cash payable in lieu of any fractional
        share; provided,
        however,
        that
        any Make-Whole Consideration payable pursuant to Section
        10.15
        shall be
        delivered by the Company within the time period specified in Section 10.15(D).
        

       

      
        
          
          

        

        
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      (B) On
        and
        after the Conversion Date of a Security, the person in whose name any
        certificate representing the Shares issuable upon such conversion is to be
        registered shall be treated as a shareholder of record of the Company;
provided,
        however,
        that if
        any such Shares constitute Make Whole Consideration, then such person shall
        not
        be treated as a shareholder of record as to such Shares constituting the
        Make
        Whole Consideration until the Effective Date of the applicable Make Whole
        Consideration. On and after the Conversion Date with respect to a conversion
        of
        a Security pursuant hereto, all rights of the Holder of such Security shall
        terminate, other than the right to receive the consideration deliverable
        upon
        conversion of such Security as provided herein. A Holder of Securities is
        not
        entitled, as such, to any rights of a holder of Common Stock until such Holder
        has converted its Securities into shares of Common Stock or is deemed to
        be a
        shareholder of record of the Company, as provided in this Section
        10.02(B),
        and
        then only to the extent such Securities are deemed to have been so converted
        or
        such Holder is so deemed to be a shareholder of record.

       

      (C) Except
        as
        provided in the Securities or in this Article
        X,
        no
        payment or adjustment will be made for accrued interest or additional interest
        on a converted Security or for dividends on any Common Stock issued on or
        prior
        to conversion. If any Holder surrenders a Security for conversion after the
        close of business on the record date for the payment of an installment of
        interest and prior to the related interest payment date, then, notwithstanding
        such conversion, the interest payable with respect to such Security on such
        interest payment date shall be paid on such interest payment date to the
        Holder
        of record of such Security at the close of business on such record date;
        provided,
        however,
        that
        such Security, when surrendered for conversion, must be accompanied by payment
        in cash to the Conversion Agent on behalf of the Company of an amount equal
        to
        the interest payable on such interest payment date on the portion so converted;
        provided
        further, however,
        that
        such payment to the Conversion Agent described in the immediately preceding
        proviso in respect of a Security surrendered for conversion shall not be
        required with respect to a Security that (i) is surrendered for conversion
        after
        the record date immediately preceding the Maturity Date, (ii) has been called
        for Redemption pursuant to Section
        3.04
        and
paragraphs
        6 and
        7
        of the
        Securities or (iii) is surrendered for conversion after a record date for
        the
        payment of an installment of interest and on or before the related interest
        payment date, where, pursuant to Section
        3.09,
        the
        Company has specified, with respect to a Fundamental Change, a Fundamental
        Change Repurchase Date that is after such record date and on or before such
        interest payment date; provided
        further,
        that,
        if the Company shall have, prior to the Conversion Date with respect to a
        Security, defaulted in a payment of interest on such Security, then in no
        event
        shall the Holder of such Security who surrenders such Security for conversion
        be
        required to pay such defaulted interest or the interest that shall have accrued
        on such defaulted interest pursuant to Section
        2.12
        or
        otherwise (it being understood that nothing in this Section
        10.02(C)
        shall
        affect the Company’s obligations under Section
        2.12).

       

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

       

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

       

      
        
          
          

        

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

       

      10.03 Fractional
        Shares.

       

      The
        Company will not issue fractional shares of Common Stock upon conversion
        of
        Securities and instead will deliver a check in an amount equal to the value
        of
        such fraction computed on the basis of the Closing Sale Price on the Trading
        Day
        immediately before the Conversion Date.

       

      10.04 Taxes
        on Conversion.

       

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

       

      10.05 Company
        to Provide Stock.

       

      The
        Company shall at all times reserve out of its authorized but unissued Common
        Stock or Common Stock held in its treasury enough shares of Common Stock
        to
        permit the conversion, in accordance herewith, of all of the Securities into
        shares of Common Stock. The shares of Common Stock due upon conversion of
        a
        Global Security shall be delivered by the Company in accordance with the
        Depositary’s customary practices.

       

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

       

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

       

      10.06 Adjustment
        of Conversion Rate.

       

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

       

      (a) In
        case
        the Company shall (1) pay a dividend in shares of Common Stock to all holders
        of
        Common Stock, (2) make a distribution in shares of Common Stock to all holders
        of Common Stock, (3) subdivide the outstanding shares of Common Stock into
        a
        greater number of shares of Common Stock or (4) combine the outstanding shares
        of Common Stock into a smaller number of shares

       

      
        
          
          

        

        
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      of
        Common
        Stock, the Conversion Rate shall be adjusted by multiplying the Conversion
        Rate
        in effect immediately prior to close of business on the Ex Date or effective
        date, as applicable, of such dividend, distribution, subdivision or combination,
        by the number of shares of Common Stock that a person who owns only one share
        of
        Common Stock immediately before such Ex Date or effective date, as applicable,
        of such dividend, distribution, subdivision or combination and who is entitled
        to participate in such dividend, distribution, subdivision or combination
        would
        own immediately after giving effect to such dividend, distribution, subdivision
        or combination (without giving effect to any arrangement pursuant to such
        dividend, distribution, subdivision or combination not to issue fractional
        shares of Common Stock). Any adjustment made pursuant to this Section 10.06(a)
        shall
        become effective immediately
        prior to the open of business on such Ex
        Date
        in the case of a dividend or distribution and shall become effective on such
        effective date in the case of a subdivision or combination.

       

      (b) In
        case
        the Company shall issue rights or warrants to all or substantially all holders
        of Common Stock, entitling them, for a period expiring not more than sixty
        (60)
        days immediately following the record date for the determination of holders
        of
        Common Stock entitled to receive such rights or warrants, to subscribe for
        or
        purchase shares of Common Stock (or securities convertible into or exchangeable
        or exercisable for Common Stock), at a price per share (or having a conversion,
        exchange or exercise price per share) that is less than the current market
        price
        (as determined pursuant to Section 10.06(g))
        per
        share of Common Stock on the record date for the determination of holders
        of
        Common Stock entitled to receive such rights or warrants, the Conversion
        Rate
        shall be increased by multiplying the Conversion Rate in effect immediately
        prior to the Ex Date corresponding to such record date by a fraction of which
        (A) the numerator shall be the sum of (I) the number of shares of Common
        Stock
        outstanding immediately
        prior to the open of business on such Ex Date and
        (II)
the
        aggregate number of shares (the “Underlying
        Shares”)
        of
        Common Stock underlying all such issued rights or warrants (whether by exercise,
        conversion, exchange or otherwise), and (B) the denominator shall be the
        sum of
        (I) number of shares of Common Stock outstanding immediately
        prior to the open of business on such Ex Date and (II) the
        number of shares of Common Stock which the aggregate exercise, conversion,
        exchange or other price at which the Underlying Shares may be subscribed
        for or
        purchased pursuant to such rights or warrants would purchase at such current
        market price per share of Common Stock; provided,
        however,
        no
        adjustment shall be made pursuant to this Section
        10.06(b) solely
        by
        reason of a
        distribution of rights pursuant to a shareholders’ rights plan, provided the
        Company has complied with the provisions of Section
        10.14
        with
        respect to such shareholders’ rights plan and distribution. Such increase shall
        become effective immediately
        prior to the open of business on such Ex Date.
        In no
        event shall the Conversion Rate be decreased pursuant to this Section
        10.06(b).

       

      (c) Except
        as
        set forth in the immediately following paragraph, in case the Company shall
        dividend or distribute to all or substantially all holders of Common Stock
        shares of Capital Stock of the Company or any existing or future

       

      
        
          
          

        

        
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      Subsidiary
        (other than Common Stock), evidences of Indebtedness or other assets (other
        than
        dividends or distributions requiring an adjustment to the Conversion Rate
        in
        accordance with Sections
        10.06(d) or
        10.06(e)),
        or
        shall dividend or distribute to all or substantially all holders of Common
        Stock
        rights or warrants to subscribe for or purchase securities (other than dividends
        or distributions of rights or warrants requiring an adjustment to the Conversion
        Rate in accordance with Section 10.06(b)),
        then
        in each such case the Conversion Rate shall be increased
        by multiplying the Conversion Rate in effect immediately prior to the open
        of
        business on the Ex Date corresponding to the record date for the determination
        of shareholders
        entitled to such dividend or distribution by a fraction of which (A) the
        numerator shall be the current market price per share of Common Stock (as
        determined pursuant to Section 10.06(g))
        on such
        record date and (B) the denominator shall be an amount equal to (I) such
        current
        market price per share of Common Stock less (II) the fair market value (as
        determined in good faith by the Board of Directors, whose determination shall
        be
        conclusive and described in a Board Resolution), on such Ex Date, of the
        portion
        of the shares of Capital Stock, evidences of Indebtedness, assets, rights
        and
        warrants to be dividended or distributed applicable to one share of Common
        Stock, such increase to become effective immediately prior to the open of
        business on such Ex Date; provided,
        however,
        that if
        such denominator is equal to or less than zero, then, in lieu of the foregoing
        adjustment to the Conversion Rate, adequate
        provision shall be made so that each Holder shall have the right to receive
        upon
        conversion of its Securities, in addition to any consideration otherwise
        payable
        as herein provided upon such conversion, an amount of shares
        of
        Capital Stock, evidences of Indebtedness, assets, rights and/or warrants
        that
        such
        Holder would have received had such Holder converted all of its Securities
        on
        such record date. Notwithstanding the foregoing, in the event that the Company
        shall distribute rights or warrants (other than distributions of rights or
        warrants requiring an adjustment to the Conversion Rate in accordance with
        Section 10.06(b))
        (collectively, “Rights”)
        pro
        rata
        to
        holders of Common Stock, the Company may, in lieu of making any adjustment
        pursuant to this Section 10.06(c),
        make
        proper provision so that each Holder of a Security who converts such Security
        (or any portion thereof) on or after the record date for such distribution
        and
        prior to the expiration or redemption of the Rights shall be entitled to
        receive
        upon such conversion, in addition to the shares of Common Stock issuable
        (and
        cash, if any, payable) upon such conversion (the “Conversion
        Shares”),
        a
        number of Rights to be determined as follows: (i) if such conversion occurs
        on
        or prior to the date for the distribution to the holders of Rights of separate
        certificates evidencing such Rights (the “Distribution
        Date”),
        the
        same number of Rights to which a holder of a number of shares of Common Stock
        equal to the number of shares of Conversion Shares would be entitled at the
        time
        of such conversion in accordance with the terms and provisions of and applicable
        to the Rights; and (ii) if such conversion occurs after the Distribution
        Date,
        the same number of Rights to which a holder of the number of shares of Common
        Stock into which the principal amount of the Security so converted was
        convertible immediately prior to the Distribution Date would have been entitled
        on the Distribution Date in accordance with the terms and provisions of
        and

       

      
        
          
          

        

        
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      applicable
        to the Rights.
        Any
        distribution of rights or warrants pursuant to a shareholders’ rights plan
        complying with the requirements set forth in the preceding sentence of this
        paragraph and with Section
        10.14
        shall
        not constitute a distribution of rights or warrants pursuant to this
Section
        10.06(c).
        In no
        event shall the Conversion Rate be decreased pursuant to this Section
        10.06(c).

       

      Notwithstanding
        anything to the contrary in this Section
        10.06(c),
        if, in
        a distribution requiring an adjustment to the Conversion Rate pursuant to
        the
        immediately preceding paragraph, the property distributed by the Company
        to all
        Holders of Common Stock consists solely of Capital Stock, or similar equity
        interests in, a Subsidiary or other business unit of the Company, which Capital
        Stock or interests are, or will be upon completion of such distribution,
        listed
        on a national securities exchange and closing sale prices for such Capital
        Stock
        or interests are readily available (a “Spin-Off”),
        then
        in lieu of adjusting the Conversion Rate in accordance with the immediately
        preceding paragraph, the Conversion Rate shall be increased (subject to the
        other terms of this Indenture) by multiplying the Conversion Rate in effect
        immediately prior to the opening of business on the thirteenth (13th) Trading
        Day following the record date for such distribution by a fraction (I) whose
        numerator is the sum of (A) the average of the Closing Sale Prices per share
        of
        Common Stock for the ten (10) consecutive Trading Days commencing on, and
        including, the third (3rd) Trading Day after the record date for such
        distribution and (B) the product of (i) the average of the Closing Sale Prices
        per share or unit, as applicable, of such Capital Stock or interests (determined
        as if such shares or units were shares of Common Stock for purposes of the
        definition of “Closing Sale Price”) for the for the ten (10) consecutive Trading
        Days commencing on, and including, the third (3rd) Trading Day after the
        record
        date for such distribution and (ii) number of shares or units, as applicable,
        of
        such Capital Stock or interests distributed per share of Common Stock; and
        (II)
        whose denominator is the average of the Closing Sale Prices per share of
        Common
        Stock for the ten (10) consecutive Trading Days commencing on, and including,
        the third (3rd) Trading Day after the record date for such distribution.
        The
        average Closing Sale Prices referred to in the immediately preceding sentence
        shall be subject to appropriate adjustments, in the Company’s good faith
        determination,
        to
        account for other distributions, stock
        splits and combinations, stock dividends, reclassifications and similar
        events.
        Each
        adjustment to the Conversion Rate made pursuant to this paragraph shall
        become effective immediately after the open of business on the thirteenth
        (13th)
        Trading Day following the record date for such distribution.

       

      Rights
        or
        warrants distributed by the Company to all holders of Common Stock entitling
        the
        holders thereof to subscribe for or purchase shares of the Company’s Capital
        Stock (either initially or under certain circumstances), which rights, options
        or warrants, until the occurrence of a specified event or events (“Trigger
        Event”):
        (i)
        are deemed to be transferred with such shares of Common Stock; (ii) are not
        exercisable; and (iii) are also issued in respect of future issuances of
        Common
        Stock, shall be deemed not to have been distributed for purposes of this
        Section
        10.06 (and
        no
        adjustment to the Conversion Rate under this Section

       

      
        
          
          

        

        
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      10.06
        will be
        required) until the occurrence of the earliest Trigger Event, whereupon such
        rights, options and warrants shall be deemed to have been distributed and
        an
        appropriate adjustment (if any is required) to the Conversion Rate shall
        be made
        under this Section
        10.06(c).
        In no
        event shall the Conversion Rate be decreased pursuant to this Section
        10.06(c).

       

      (d) In
        case
        the Company shall, by dividend or otherwise, at any time make a distribution
        of
        cash (excluding any cash that is distributed as part of a distribution requiring
        a Conversion Rate adjustment pursuant to Section
        10.06(e))
        to all
        or substantially all holders of Common Stock, the Conversion Rate shall be
        increased by multiplying the Conversion Rate in effect immediately
        prior to the open of business on the Ex Date for such distribution by
        a
        fraction (A) whose numerator shall be the current market price per share
        of
        Common Stock (as determined pursuant to Section 10.06(g))
        on such
        Ex Date and (B) whose denominator shall be an amount equal to (I) such current
        market price per share of Common Stock less (II) the
        amount of the distribution per share of Common Stock;
        provided,
        however,
        that
        the Conversion Rate shall not be adjusted pursuant to this Section
        10.06(d)
        to the
        extent, and only to the extent, such adjustment would cause the Conversion
        Price
        to be less than one cent ($0.01) (which minimum amount shall be subject to
        appropriate adjustments, in the good faith determination of the Board
        of
        Directors (whose determination shall be described in a Board Resolution),
        to
        account for stock
        splits and combinations, stock dividends, reclassifications and similar
        events);
        provided
        further
        that, if
        the denominator of such fraction shall be equal to or less than zero, the
        Conversion Rate shall be instead adjusted so that the Conversion Price is
        equal
        to one cent ($0.01) (as adjusted in accordance with the immediately preceding
        proviso). An adjustment to the Conversion Rate pursuant to this Section
        10.06(d)
        shall
        become effective immediately
        prior to the open of business on such Ex Date.
        In no
        event shall the Conversion Rate be decreased pursuant to this Section
        10.06(d). 

       

      (e) In
        case
        the Company or any Subsidiary shall distribute cash or other consideration
        in
        respect of a tender offer or exchange offer made by the Company or any
        Subsidiary for all or any portion of the Common Stock where the sum of the
        aggregate amount of such cash distributed and the aggregate fair market value
        (as determined in good faith by the Board of Directors, whose determination
        shall be conclusive and set forth in a Board Resolution), as of the Expiration
        Date (as defined below), of such other consideration distributed (such sum,
        the
“Aggregate
        Amount”)
        expressed as an amount per share of Common Stock validly tendered or exchanged,
        and not withdrawn, pursuant to such tender offer or exchange offer as of
        the
        Expiration Time (as defined below) (such tendered or exchanged shares of
        Common
        Stock, the “Purchased
        Shares”)
        exceeds the current market price per share of Common Stock on the first Trading
        Day after the last date (such last date, the “Expiration
        Date”)
        on
        which tenders or exchanges could have been made pursuant to such tender offer
        or
        exchange offer (as the same may be amended through the Expiration Date),
        then
        the Conversion Rate shall be increased by multiplying the Conversion Rate
        in
        effect immediately prior to the close of business on the first Trading Day
        after
        the Expiration Date by

       

      
        
          
          

        

        
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      a
        fraction (A) whose numerator is equal to the sum of (I) the Aggregate Amount
        and
        (II) the product of (a) the current market price per share of Common Stock
        on
        the first Trading Day after the Expiration Date and (b) an amount equal to
        (i)
        the number of shares of Common Stock outstanding as of the last time (the
        “Expiration
        Time”)
        at
        which tenders or exchanges could have been made pursuant to such tender offer
        or
        exchange offer (including all Purchased Shares) less (ii) the Purchased Shares
        and (B) whose denominator is equal to the product of (I) the number of shares
        of
        Common Stock outstanding as of the Expiration Time (including all Purchased
        Shares) and (II) the current market price per share of Common Stock on the
        first
        Trading Day after the Expiration Date.

       

      An
        increase, if any, to the Conversion Rate pursuant to this Section
        10.06(e)
        shall
        become effective immediately prior to the open of business on the Business
        Day
        following the first Trading Day after the Expiration Date. In the event that
        the
        Company or a Subsidiary is obligated to purchase shares of Common Stock pursuant
        to any such tender offer or exchange offer, but the Company or such Subsidiary
        is permanently prevented by applicable law from effecting any such purchases,
        or
        all such purchases are rescinded, then the Conversion Rate shall again be
        adjusted to be the Conversion Rate which would then be in effect if such
        tender
        offer or exchange offer had not been made. If the application of this
Section 10.06(e)
        to any
        tender offer or exchange offer would result in a decrease in the Conversion
        Rate, no adjustment shall be made for such tender offer or exchange offer
        under
        this Section 10.06(e).

       

      (f) In
        addition to the foregoing adjustments in subsections
        (a),
        (b),
        (c),
        (d),
        and (e)
        above,
        the Company, from time to time and to the extent permitted by law and the
        continued listing requirements of the American Stock Exchange, may increase
        the
        Conversion Rate by any amount for a period of at least twenty (20) days or
        such
        longer period as may be permitted or required by law, if the Board of Directors
        has made a determination, which determination shall be conclusive, that such
        increase would be in the best interests of the Company, provided,
        that
        such increase will not cause the then effective Conversion Price to be less
        than
        $0.01. Such Conversion Rate increase shall be irrevocable during such period.
        The Company shall give written notice to the Trustee and cause notice of
        such
        increase to be mailed to each Holder of Securities at such Holder’s address as
        the same appears on the registry books of the Registrar, at least fifteen
        (15)
        days prior to the date on which such increase commences.

       

      (g) For
        the
        purpose of any computation under subsections
        (a),
        (b),
        (c) or (d)
        above
        of
        this Section
        10.06,
        the
        current market price per share of Common Stock on any date of determination
        (the
“Determination
        Date”)
        shall
        be deemed to be the average of the Closing Sale Prices for the ten (10)
        consecutive Trading Days ending on, but excluding, the earlier of the
        Determination Date and the Ex Date with respect to such issuance or
        distribution; provided,
        however,
        that
        such current market price per share of Common Stock shall be appropriately
        adjusted by the Board of Directors, in its good faith determination (which
        determination

       

      
        
          
          

        

        
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      shall
        be
        described in a Board Resolution),
        to
        account for any adjustment, pursuant hereto, to the Conversion Rate that
        shall
        become effective, or any event requiring, pursuant hereto, an adjustment
        to the
        Conversion Rate where the Ex Date of such event occurs, at any time during
        the
        period that begins on, and includes, the first day of such ten (10) consecutive
        Trading Days and ends on, and includes, the date when the adjustment to the
        Conversion Rate on account of the event requiring the computation of such
        current market price becomes effective.
        For
        purposes of subsection
        (e) above
        of
        this Section
        10.06,
        the
        current market price per share of Common Stock on the first Trading Day after
        the Expiration Date shall be deemed to be the Closing Sale Price of Common
        Stock
        on such date.

       

      The
        term
“Ex
        Date,”
(i)
        when used with respect to any issuance or distribution, means the first date
        on
        which the Common Stock trades the regular way on the relevant exchange or
        in the
        relevant market from which the Closing Sale Price was obtained without the
        right
        to receive such issuance or distribution, (ii) when used with respect to
        any
        subdivision or combination of shares of Common Stock, means the first date
        on
        which the Common Stock trades the regular way on such exchange or in such
        market
        after the time at which such subdivision or combination becomes effective,
        and
        (iii) when used with respect to any tender offer or exchange offer means
        the
        first date on which the Common Stock trades the regular way on such exchange
        or
        in such market after the expiration time of such tender offer or exchange
        offer
        (as it may be amended or extended).
        For
        purposes of determining the Ex Date with respect to an issuance or distribution
        under this Indenture, the Company may conclusively assume (and such assumption
        shall be binding upon the Holders) that purchases and sales of the relevant
        security with respect to which such issuance or distribution is being made
        will
        settle based on the customary settlement cycle for purchases or sales of
        such
        security.

       

      Unless
        the context requires otherwise, the term “record
        date”
means,
        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).

       

      10.07 No
        Adjustment.

       

      Notwithstanding
        anything herein or in the Securities to the contrary, in no event shall the
        Conversion Rate be adjusted pursuant to this Indenture or the Securities
        to the
        extent such adjustment shall reduce the Conversion Price to an amount that
        is
        less than the par value per share of Common Stock.

       

      No
        adjustment in the Conversion Rate pursuant to Section
        10.06
        shall be
        required until cumulative adjustments amount to one percent (1%) or more
        of the
        Conversion Rate as last

       

      
        
          
          

        

        
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      adjusted
        (or, if never adjusted, the initial Conversion Rate); provided,
        however,
        that any
        adjustments to the Conversion Rate which by reason of this Section 10.07
        are not
        required to be made shall be carried forward and taken into account in any
        subsequent adjustment to the Conversion Rate; provided
        further,
        that at
        the end of each fiscal year of the Company, beginning with the fiscal year
        ending on December 31, 2006, any adjustments to the Conversion Rate that
        have
        been, and at such time remain, deferred pursuant to this Section 10.07
        shall be
        given effect, and such adjustments, if any, shall no longer be carried forward
        and taken into account in any subsequent adjustment to the Conversion Rate;
        provided
        further,
        that if
        the Company shall mail a notice of Redemption pursuant to Section 3.04,
        or if a
        Fundamental Change or Make-Whole Fundamental Change occurs, then, in each
        case,
        any adjustments to the Conversion Rate that have been, and at such time remain,
        deferred pursuant to this Section 10.07
        shall be
        given effect, and such adjustments, if any, shall no longer be carried forward
        and taken into account in any subsequent adjustment to the Conversion Rate.
        All
        calculations under this Article X
        shall be
        made to the nearest cent or to the nearest one-millionth of a share, as the
        case
        may be. 

       

      Notwithstanding
        anything herein or in the Securities to the contrary, if any rights, options
        or
        warrants issued by the Company and requiring an adjustment to the Conversion
        Rate in accordance with Section
        10.06
        are only
        exercisable upon the occurrence of certain triggering events, then the
        Conversion Rate will not be adjusted as provided in Section
        10.06
        until
        the earliest of such triggering event occurs. Upon the expiration, termination
        or redemption of any such rights, options or warrants without the exercise
        of
        such rights, options or warrants, the Conversion Rate then in effect shall
        be
        adjusted immediately to the Conversion Rate which would have been in effect
        at
        the time of such expiration, termination or redemption had such rights, options
        or warrants, to the extent outstanding immediately prior to such expiration,
        termination or redemption, never been issued.

       

      If
        any
        dividend or distribution is declared and the Conversion Rate is adjusted
        pursuant to Section
        10.06
        on
        account of such dividend or distribution, but such dividend or distribution
        is
        thereafter not paid or made, the Conversion Rate shall again be adjusted
        to the
        Conversion Rate which would then be in effect had such dividend or distribution
        not been declared.

       

      No
        adjustment to the Conversion Rate need be made pursuant to Section
        10.06
        for a
        transaction if each Holder is to participate in the transaction, at
        substantially the same time that holders of Common Stock participate in such
        transaction, without conversion as if such Holder held a number of shares
        of
        Common Stock equal to a fraction whose numerator is the product of the
        Conversion Rate in effect at the Ex Date or effective date, as applicable,
        of
        the transaction (without giving effect to any adjustment pursuant to
Section
        10.06
        on
        account of such transaction) and the aggregate principal amount of Securities
        held by such Holder and whose denominator is one thousand (1,000).

       

      Notwithstanding
        anything herein to the contrary, in no event shall the Conversion Rate be
        increased pursuant to Section
        10.06(b),
        Section
        10.06(c),
        Section
        10.06(d)
        or
Section
        10.06(e) to
        the
        extent, but only to the extent, such increase shall cause the Conversion
        Rate
        applicable to such Security to exceed 96.7118 shares per $1,000 principal
        amount
        (the “BCF
        Adjustment Cap”);
        provided,
        however,
        that
        the BCF Adjustment Cap shall be adjusted in the same manner in which the
        Conversion Rate is to be adjusted pursuant to this Article
        X
        for
        stock splits and combinations, stock dividends, reclassifications and similar
        events.

       

      
        
          
          

        

        
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      10.08 Other
        Adjustments.

       

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

       

      10.09 Adjustments
        for Tax Purposes.

       

      Except
        as
        prohibited by law the Company may (but is not obligated to) make such increases
        in the Conversion Rate, in addition to those required by Section 10.06
        hereof,
        as it determines to be advisable in order that any stock dividend, subdivision
        of shares, distribution of rights to purchase stock or securities or
        distribution of securities convertible into or exchangeable for stock made
        by
        the Company or to its shareholders will not be taxable to the recipients
        thereof
        or in order to diminish any such taxation.

       

      10.10 Notice
        of Adjustment.

       

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

       

      10.11 Notice
        of Certain Transactions.

       

      In
        the
        event that:

       

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

       

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

       

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

       

      the
        Company shall mail to Holders at the addresses appearing on the Registrar’s
        books and the Trustee a written notice stating the proposed record, effective
        or
        expiration date, as the case may be, of any transaction referred to in
clause (1),
        (2)
        or
(3)
        of this
Section 10.11.
        The
        Company shall mail such notice at least twenty (20) calendar days (or, in
        the
        case of any event that would require an adjustment in the Conversion Rate
        pursuant to Sections
        10.06(b),
        10.06(c),
        10.06(d)
        or
10.06(e),
        forty
        five (45) calendar days) before such date; however, failure to mail such
        notice
        or any defect therein shall not affect the validity of any transaction referred
        to in clause (1),
        (2)
        or
(3)
        of this
Section 10.11.

       

      
        
          
          

        

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

       

      If
        any of
        the following shall occur, namely: (i) any reclassification or change in
        the
        Common Stock issuable upon conversion of Securities (other than a change
        only in
        par value, or from par value to no par value, or from no par value to par
        value,
        or as a result of a subdivision or combination of Common Stock), (ii) any
        consolidation, amalgamation, statutory arrangement, merger or binding share
        exchange to which the Company is a party other than a merger in which the
        Company is the continuing Person and which does not result in any
        reclassification of, or change (other than a change in name, or par value,
        or
        from par value to no par value, or from no par value to par value or as a
        result
        of a subdivision or combination) in, the Common Stock or (iii) any sale,
        transfer, lease, conveyance or other disposition of all or substantially
        all of
        the property or assets of the Company (or if the Company and/or the Subsidiaries
        sell, transfer, lease, convey or otherwise dispose of all or substantially
        all
        of the property or assets of the Company and the Subsidiaries on a consolidated
        basis), in each case pursuant to which the Common Stock would be converted
        into
        or exchanged for, or would constitute solely the right to receive, cash,
        securities or other property, then the Company or such successor or purchasing
        Person, as the case may be, shall, as a condition precedent to such
        reclassification, change, consolidation, amalgamation, statutory arrangement,
        merger, binding share exchange, sale, transfer, lease, conveyance or
        disposition, execute and deliver to the Trustee a supplemental indenture
        in form
        reasonably satisfactory to the Trustee providing that, at and after the
        effective time of such reclassification, change, consolidation, amalgamation,
        statutory arrangement, merger, binding share exchange, sale, transfer, lease,
        conveyance or disposition, the Holder of each Security then outstanding shall
        have the right to convert such Security into the kind and amount of cash,
        securities or other property (collectively, “Reference
        Property”)
        receivable upon such reclassification, change, consolidation, amalgamation,
        statutory arrangement, merger, binding share exchange, sale, transfer, lease,
        conveyance or disposition by a holder of a number of shares of Common Stock
        equal to a fraction whose denominator is one thousand (1,000) and whose
        numerator is the product of the principal amount of such Security and the
        Conversion Rate in effect immediately prior to such reclassification, change,
        consolidation, amalgamation, statutory arrangement, merger, binding share
        exchange, sale, transfer, lease, conveyance or disposition (assuming, if
        holders
        of Common Stock shall have the opportunity to elect the form of consideration
        to
        receive pursuant to such reclassification, change, consolidation, amalgamation,
        statutory arrangement, merger, binding share exchange, sale, transfer, lease,
        conveyance or disposition, that the Collective Election shall have been made
        with respect to such election). If holders of Common Stock shall have the
        opportunity to elect the form of consideration to receive pursuant to such
        reclassification, change, consolidation, amalgamation, statutory arrangement,
        merger, binding share exchange, sale, transfer, lease, conveyance or
        disposition, then the Company shall make adequate provision to give Holders,
        treated as a single class, a reasonable opportunity to elect (the “Collective
        Election”)
        the
        form of such consideration for purposes of determining the composition of
        the
        Reference Property referred to in the immediately preceding sentence, and
        once
        such election is made, such election shall apply to all Holders after the
        effective time of such reclassification, change, consolidation, amalgamation,
        statutory arrangement, merger, binding share exchange, sale, transfer, lease,
        conveyance or disposition. Such Collective Election shall be determined based
        on
        the weighted average of the elections made by Holders of the Securities who
        participate in such determination, shall be subject to any limitations to
        which
        all of the holders of Common Stock are subject, such as pro-rata
        reductions

       

      
        
          
          

        

        
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      applicable
        to any portion of the consideration payable in such reclassification, change,
        consolidation, amalgamation, statutory arrangement, merger, binding share
        exchange, sale, transfer, lease, conveyance or disposition, and shall be
        conducted in such a manner as to be completed by the close of business on
        the
        actual effective date of such reclassification, change, consolidation,
        amalgamation, statutory arrangement, merger, binding share exchange, sale,
        transfer, lease, conveyance or disposition. The Company shall provide written
        notice of the opportunity to determine the form of such consideration, as
        well
        as notice of the determination made by Holders, by issuing a press release
        and
        providing a copy of such notice to the Trustee. 

       

      The
        supplemental indenture referred to in the first sentence of this Section 10.12
        shall
        provide for adjustments of the Conversion Rate which shall be as nearly
        equivalent as may be practicable to the adjustments of the Conversion Rate
        provided for in this Article X.
        The
        foregoing, however, shall not in any way affect the right a Holder of a Security
        may otherwise have, pursuant to Section
        10.06(b),
        Section
        10.06(c)
        or
Section
        10.14,
        to
        receive rights or warrants upon conversion of a Security. If, in the case
        of any
        such consolidation, amalgamation, statutory arrangement, merger, binding
        share
        exchange, sale, transfer, lease, conveyance or disposition, the stock or
        other
        securities and property (including cash) receivable thereupon by a holder
        of
        Common Stock includes shares of stock or other securities and property of
        a
        Person other than the successor or purchasing Person, as the case may be,
        in
        such consolidation, amalgamation, statutory arrangement, merger, binding
        share
        exchange, sale, transfer, lease, conveyance or disposition, then such
        supplemental indenture shall also be executed by such other Person and shall
        contain such additional provisions to protect the interests of the Holders
        of
        the Securities as the Board of Directors in good faith shall reasonably
        determine necessary by reason of the foregoing (which determination shall
        be
        described in a Board Resolution). The provisions of this Section 10.12
        shall
        similarly apply to successive consolidations, mergers, binding share exchanges,
        sales, transfers, leases, conveyances or dispositions.

       

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

       

      The
        Company shall not become a party to any such reclassification, change,
        consolidation, amalgamation, statutory arrangement, merger, binding share
        exchange, sale, transfer, lease, conveyance or disposition unless the terms
        thereof are consistent with this Section
        10.12.

       

      10.13 Trustee’s
        Disclaimer.

       

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

       

      
        
          
          

        

        
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      value
        of
        any securities or assets issued upon conversion of Securities, and the Trustee
        shall not be responsible for the failure by the Company to comply with, and
        shall not be under a duty independently to monitor or enforce the Company’s
        compliance with, any provisions of this Article X.

       

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

       

      10.14 Rights
        Distributions Pursuant to Shareholders’ Rights Plans.

       

      Upon
        conversion of any Security or a portion thereof, the Company shall make
        provision such that the Holder thereof shall, to the extent such Holder is
        to
        receive shares of Common Stock upon such conversion, receive, in addition
        to,
        and concurrently with the delivery of, the consideration otherwise payable
        hereunder upon such conversion, the rights described in the Rights Agreement
        (as
        the same may be amended, supplemented or replaced) and any future shareholders’
rights plan(s) of the Company then in effect; provided,
        however,
        that no
        such provision need be made if the rights have been separated from the Common
        Stock prior to the time of such conversion, but the provisions of Section
        10.06(b)
        shall
        apply.

       

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

       

      (A) Notwithstanding
        anything herein to the contrary, the Conversion Rate applicable to each Security
        that is surrendered for conversion, in accordance with this Article
        X,
        at any
        time during the period (the “Make-Whole
        Conversion Period”)
        that
        begins on, and includes, the date that is thirty (30) calendar days prior
        to the
        date originally announced by the Company as the anticipated effective date
        of a
        Make-Whole Fundamental Change (which anticipated effective date the Company
        shall disclose, in good faith, in the written notice, public announcement
        and
        publication referred to in Section
        10.15(D))
        and
        ends on, and includes, the date that is forty (40) Business Days after the
        actual effective date of such Make-Whole Fundamental Change (or, if such
        Make-Whole Fundamental Change also constitutes a Fundamental Change, the
        Fundamental Change Repurchase Date applicable to such Fundamental Change)
        shall
        be increased to an amount equal to the Conversion Rate that would, but for
        this
Section
        10.15,
        otherwise apply to such Security pursuant to this Article
        X,
        plus an
        amount equal to the Make-Whole Applicable Increase; provided,
        however,
        that
        such increase to the Conversion Rate shall not apply if such
        Make-Whole Fundamental Change is announced by the Company but shall not be
        consummated.

       

      The
        additional consideration payable hereunder on account of any Make-Whole
        Applicable Increase with
        respect to a Security surrendered for conversion is herein referred to as
        the
“Make-Whole
        Consideration.”
        

       

      The
        Make-Whole Consideration due upon a conversion of a Security by a Holder
        shall
        be paid as soon as practicable after the Conversion Date of such conversion,
        but
        in no event

       

      
        
          
          

        

        
          -64-

          
            

          

        

        
          
          

        

      

      later
        than the third (3rd) Business Day after the later of (1) the date such Holder
        surrenders such Security for such conversion; and (2) the Effective Date
        of the
        applicable Make-Whole Fundamental Change.

       

      (B) As
        used
        herein, “Make-Whole
        Applicable Increase”
shall
        mean, with respect to a Make-Whole Fundamental Change, the amount per $1,000
        principal amount of Securities, set forth in the following table, which
        corresponds to the effective date of such Make-Whole Fundamental Change (the
        “Effective
        Date”)
        and
        the Applicable Price of such Make-Whole Fundamental Change:

      

       

        
          
            	 	
                    Effective
                      Date

                  
	
                    Applicable
                      Price

                  	
                    October
                      12, 2006

                  	
                    October
                      15, 2007

                  	
                    October
                      15, 2008

                  	
                    October
                      15, 2009

                  	
                    October
                      15, 2010

                  	
                    October
                      20, 2011

                  
	
                    $10.34

                  	
                    19.79

                  	
                    19.79

                  	
                    19.79

                  	
                    19.79

                  	
                    19.79

                  	
                    19.79

                  
	
                    $12.50

                  	
                    14.35

                  	
                    14.80

                  	
                    13.35

                  	
                    11.49

                  	
                    8.90

                  	
                    3.08

                  
	
                    $15.00

                  	
                    10.37

                  	
                    10.58

                  	
                    9.19

                  	
                    7.40

                  	
                    4.97

                  	
                    -

                  
	
                    $17.50

                  	
                    7.91

                  	
                    8.05

                  	
                    6.82

                  	
                    5.27

                  	
                    3.30

                  	
                    -

                  
	
                    $20.00

                  	
                    6.27

                  	
                    6.40

                  	
                    5.35

                  	
                    4.06

                  	
                    2.51

                  	
                    -

                  
	
                    $22.50

                  	
                    5.12

                  	
                    5.25

                  	
                    4.36

                  	
                    3.30

                  	
                    2.07

                  	
                    -

                  
	
                    $25.00

                  	
                    4.26

                  	
                    4.42

                  	
                    3.67

                  	
                    2.78

                  	
                    1.78

                  	
                    -

                  
	
                    $27.50

                  	
                    3.61

                  	
                    3.79

                  	
                    3.15

                  	
                    2.40

                  	
                    1.57

                  	
                    -

                  
	
                    $30.00

                  	
                    3.10

                  	
                    3.29

                  	
                    2.74

                  	
                    2.11

                  	
                    1.40

                  	
                    -

                  
	
                    $32.50

                  	
                    2.68

                  	
                    2.88

                  	
                    2.41

                  	
                    1.87

                  	
                    1.26

                  	
                    -

                  
	
                    $35.00

                  	
                    2.33

                  	
                    2.55

                  	
                    2.14

                  	
                    1.67

                  	
                    1.15

                  	
                    -

                  
	
                    $37.50

                  	
                    2.04

                  	
                    2.27

                  	
                    1.91

                  	
                    1.51

                  	
                    1.04

                  	
                    -

                  
	
                    $40.00

                  	
                    1.80

                  	
                    2.02

                  	
                    1.72

                  	
                    1.36

                  	
                    0.95

                  	
                    -

                  
	
                    $42.50

                  	
                    1.59

                  	
                    1.82

                  	
                    1.55

                  	
                    1.24

                  	
                    0.87

                  	
                    -

                  
	
                    $45.00

                  	
                    1.40

                  	
                    1.64

                  	
                    1.40

                  	
                    1.13

                  	
                    0.81

                  	
                    -

                  
	
                    $47.50

                  	
                    1.24

                  	
                    1.48

                  	
                    1.27

                  	
                    1.03

                  	
                    0.74

                  	
                    -

                  
	
                    $50.00

                  	
                    1.10

                  	
                    1.34

                  	
                    1.15

                  	
                    0.94

                  	
                    0.69

                  	
                    -

                  

          

          
provided,
            however,
            that:

        

      

      

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

       

      (ii) if
        the
        actual Applicable Price of such Make-Whole Fundamental Change is greater
        than
        $50.00 per share (subject to adjustment as provided in Section
        10.15(B)(iii)),
        or if
        the actual Applicable Price of such Make-Whole Fundamental Change is less
        than
        $10.34 per share (subject to adjustment as provided in Section
        10.15(B)(iii)),
        then
        the Make-Whole Applicable Increase shall be equal to zero (0);

       

      
        
          
          

        

        
          -65-

          
            

          

        

        
          
          

        

      

      (iii) if
        an
        event occurs that requires, pursuant to this Article
        X
        (other
        than solely pursuant to this Section
        10.15),
        an adjustment to the Conversion Rate, then, on the date and at the time such
        adjustment is so required to be made, each price set forth in the table above
        under the column titled “Applicable Price” shall be deemed to be adjusted so
        that such price, at and after such time, shall be equal to the product of
        (1)
        such price as in effect immediately before such adjustment to such price
        and (2)
        a fraction whose numerator is the Conversion Rate in effect immediately before
        such adjustment to the Conversion Rate and whose denominator is the Conversion
        Rate to be in effect, in accordance with this Article
        X,
        immediately after such adjustment to the Conversion Rate;
        

       

      (iv) each
        Make-Whole Applicable Increase amount set forth in the table above shall
        be
        adjusted in the same manner in which, and for the same events for which,
        the
        Conversion Rate is to be adjusted pursuant to Section
        10.01
        through
Section
        10.14;
        and

       

      (v) in
        no
        event shall the Conversion Rate applicable to any Security be increased pursuant
        to this Section
        10.15
        to the
        extent, but only to the extent, such increase shall cause the Conversion
        Rate
        applicable to such Security to exceed 96.7118 shares per $1,000 principal
        amount
        (the “BCF
        Make-Whole Cap”);
        provided,
        however,
        that
        the BCF Make-Whole Cap shall be adjusted in the same manner in which, and
        for
        the same events for which, the Conversion Rate is to be adjusted pursuant
        to
        this Article
        X
        .

       

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

       

      (D) At
        least
        thirty (30) calendar days before the anticipated effective date of each proposed
        Make-Whole Fundamental Change, the Company shall mail to each Holder at
        their

       

      
        
          
          

        

        
          -66-

          
            

          

        

        
          
          

        

      

      address
        appearing in the Securities Register, in accordance with Section
        12.02,
        written
        notice of, and shall publicly announce, through a reputable national newswire
        service, and publish on the Company’s website, the anticipated effective date of
        such proposed Make-Whole Fundamental Change. Each such notice, announcement
        and
        publication shall also state that, in connection with such Make-Whole
        Fundamental Change, the Company shall increase, in accordance herewith, the
        Conversion Rate applicable to Securities entitled as provided herein to such
        increase (along with a description of how such increase shall be calculated
        and
        the time periods during which Securities must be surrendered in order to
        be
        entitled to such increase).
        No later
        than the third Business Day after the Effective Date of each Make-Whole
        Fundamental Change, the Company shall mail, in accordance with Section
        12.02,
        written
        notice of, and shall publicly announce, through a reputable national newswire
        service, and publish on the Company’s website, such Effective Date and the
        Make-Whole Applicable Increase applicable to such Make-Whole Fundamental
        Change. 

       

      (E) For
        avoidance of doubt, the provisions of this Section
        10.15
        shall
        not affect or diminish the Company’s obligations, if any, pursuant to
Article
        IV
        with
        respect to a Make-Whole Fundamental Change.

       

      (F) Nothing
        in this Section
        10.15
        shall
        prevent an adjustment to the Conversion Rate pursuant to Section
        10.06
        in
        respect of a Make-Whole Fundamental Change.

       

       

      XI. SUBSIDIARY
        GUARANTEES

       

      11.01 Guarantees.

       

      Subject
        to this Article
        XI,
        each of
        the Guarantors hereby, jointly and severally, unconditionally guarantees
        to each
        Holder of a Security authenticated and delivered by the Trustee, to each
        holder
        of shares of Common Stock issued upon conversion of a Security and to the
        Trustee and its successors and assigns, irrespective of the validity and
        enforceability of this Indenture, the Securities or the obligations of the
        Company hereunder or thereunder, that: (a) the principal of, premium, if
        any,
        and interest or additional interest, if any, on the Securities will be promptly
        paid in full when due, whether at maturity, by acceleration, redemption or
        otherwise, and interest on the overdue principal of and premium, if any,
        and
        interest or additional interest, if any, on the Securities or such shares,
        if
        lawful, and all other obligations of the Company to the Holders or the Trustee
        hereunder or thereunder or under the Registration Rights Agreement will be
        promptly paid in full or performed, all in accordance with the terms hereof
        and
        thereof; and (b) in case of any extension of time of payment or renewal of
        any
        Securities, any such shares or any of such other obligations, that the same
        will
        be promptly paid in full when due or performed in accordance with the terms
        of
        the extension or renewal, whether at stated maturity, by acceleration or
        otherwise. Failing payment when due of any amount so guaranteed or any
        performance so guaranteed for whatever reason, the Guarantors shall be jointly
        and severally obligated to pay the same immediately. Each Guarantor agrees
        that
        this is a guarantee of payment and not a guarantee of collection. For purposes
        of this Article
        XI,
        “Holder” shall be deemed to include any holder of shares of Common Stock issued
        upon conversion of a Security or issued pursuant to Article
        III.

       

      
        
          
          

        

        
          -67-

          
            

          

        

        
          
          

        

      

      Subject
        to this Article
        XI,
        each
        Guarantor hereby agrees that its obligations hereunder shall be unconditional,
        irrespective of the validity, regularity or enforceability of the Securities
        or
        this Indenture, the absence of any action to enforce the same, any waiver
        or
        consent by any Holder of the Securities with respect to any provisions hereof
        or
        thereof, the recovery of any judgment against the Company, any action to
        enforce
        the same or any other circumstance which might otherwise constitute a legal
        or
        equitable discharge or defense of a guarantor. Notwithstanding the foregoing,
        each Guarantor shall, with respect to any claim, action or proceeding against
        such Guarantor relating to this Indenture, the Securities or such Guarantor’s
        Subsidiary Guarantee, be entitled to assert a defense of prior payment or
        performance by such Guarantor of the obligations that are the subject of
        such
        claim, action or proceeding. Each Guarantor hereby waives diligence,
        presentment, demand of payment, filing of claims with a court in the event
        of
        insolvency or bankruptcy of the Company, any right to require a proceeding
        first
        against the Company, protest, notice and all demands whatsoever and covenants
        that this Subsidiary Guarantee shall not be discharged except by complete
        performance of the obligations contained in the Securities, this Indenture
        and
        the Registration Rights Agreement. Nothing in the foregoing sentence shall
        affect the obligations contained in Section
        6.06 of
        this
        Indenture.

       

      If
        any
        Holder or the Trustee is required by any court or otherwise to return to
        the
        Company, the Guarantors or any custodian, trustee, liquidator or other similar
        official acting in relation to either the Company or the Guarantors, any
        amount
        paid by the Company or any Guarantor either to the Trustee or to such Holder,
        then each Subsidiary Guarantee, to the extent theretofore discharged, shall
        be
        reinstated in full force and effect.

       

      Each
        Guarantor agrees that it shall not be entitled to any right of subrogation
        in
        relation to the Holders in respect of any obligations guaranteed hereby until
        payment in full of all obligations guaranteed hereby. Each Guarantor further
        agrees that, as between the Guarantors, on the one hand, and the Holders
        and the
        Trustee, on the other hand, (x) the maturity of the obligations guaranteed
        hereby may be accelerated as provided in this Indenture for the purposes
        of the
        Subsidiary Guarantees, notwithstanding any stay, injunction or other prohibition
        preventing such acceleration in respect of the obligations guaranteed hereby,
        and (y) in the event of any acceleration of such obligations as provided
        in this
        Indenture, such obligations (whether or not due and payable) shall forthwith
        become due and payable by the Guarantors for the purpose of the Subsidiary
        Guarantees. The Guarantors shall have the right to seek contribution from
        any
        non-paying Guarantor so long as the exercise of such right does not impair
        the
        rights of the Holders under the Guarantee. 

       

      Each
        Guarantor also agrees to pay any and all reasonable costs and expenses
        (including reasonable attorneys' fees and expenses) incurred by the Trustee
        in
        enforcing any rights under this Article
        XI.

       

      11.02 Limitation
        on Guarantor Liability.

       

      Each
        Guarantor, and, by its acceptance of Securities, each Holder, hereby confirms
        that it is the intention of all such parties that the Subsidiary Guarantee
        of
        each Guarantor not constitute a fraudulent transfer or conveyance for purposes
        of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent
        Transfer Act or any similar federal or state law to the extent applicable
        to any
        Subsidiary Guarantee. To effectuate the foregoing intention, the

       

      
        
          
          

        

        
          -68-

          
            

          

        

        
          
          

        

      

      Trustee,
        the Holders and the Guarantors hereby irrevocably agree that the obligations
        of
        each Guarantor shall be limited to the maximum amount as will, after giving
        effect to all other contingent and fixed liabilities of such Guarantor that
        are
        relevant under such laws, and after giving effect to any collections from,
        rights to receive contribution from or payments made by or on behalf of any
        other Guarantor in respect of the obligations of such other Guarantor under
        this
Article
        XI,
        result
        in the obligations of such Guarantor under its Subsidiary Guarantee not
        constituting a fraudulent transfer or conveyance.

       

      11.03 Execution
        and Delivery of Subsidiary Guarantees.

       

      To
        evidence its Subsidiary Guarantee set forth in Section
        11.01,
        each
        Guarantor hereby agrees that a notation of such Subsidiary Guarantee
        substantially in the form included in Exhibit
        E
        shall be
        endorsed by an Officer of such Guarantor on each Security authenticated and
        delivered by the Trustee and that this Indenture shall be executed on behalf
        of
        such Guarantor by one of its Officers.

       

      Notwithstanding
        the foregoing, each Guarantor hereby agrees that any failure by such Guarantor
        to endorse on each Security a notation of such Subsidiary Guarantee shall
        not
        affect such Guarantor’s obligations under Section
        11.01
        or the
        validity of such Guarantor’s Subsidiary Guarantee.

       

      If
        an
        Officer whose signature is on this Indenture or on any Subsidiary Guarantee
        no
        longer holds that office at the time the Trustee authenticates the Security
        on
        which the Subsidiary Guarantee is endorsed, the Subsidiary Guarantee shall
        nevertheless be valid.

       

      The
        delivery of any Security by the Trustee, after the authentication thereof
        hereunder, shall constitute due delivery of the Subsidiary Guarantee set
        forth
        in this Indenture on behalf of the Guarantors.

       

      11.04 Release,
        Discharge Upon Merger or Consolidation and Termination.

       

      (A) The
        Company may at its option, from time to time, release and relieve any Guarantor
        from all obligations under such Guarantor’s Subsidiary Guarantee, provided
        that
        as a
        condition to such release, the Company shall cause one or more of its other
        Subsidiaries, with revenues and operating expenses equal to or greater than
        that
        of the released Guarantor over the prior four fiscal quarters for which
        financial statements are available, to become a replacement Guarantor. The
        release of a Guarantor and the establishment of a new Subsidiary Guarantee
        shall
        be accomplished by a supplemental indenture to be executed by the Company,
        the
        Guarantor being released, the new replacement Guarantor and the Trustee.
        

       

      (B) The
        Company may at its option release and relieve any Guarantor from all obligations
        under such Guarantor’s Subsidiary Guarantee, and any person acquiring assets
        (including by way of merger or consolidation) or capital stock of such Guarantor
        shall not be required to assume the obligations of Guarantor, in connection
        with
        (i) any sale or other disposition of all or substantially all of the assets
        of
        such Guarantor to a person that is not (either before or after giving effect
        to
        such transaction) a Guarantor and (ii) any sale of all the capital stock
        of such
        Guarantor to a person that is not (either before or after giving effect to
        such
        transaction) a Guarantor, provided
        that:

       

      
        
          
          

        

        
          -69-

          
            

          

        

        
          
          

        

      

      (a) the
        Company provides a replacement Guarantor(s) pursuant to this
        Section 11.04;
        or

       

      (b)
         the
        circumstances described in Section
        5.01
        are
        involved, in which case the provisions in Section
        5.01
        shall
        govern (rather than clause (a) above).

       

      (C) Each
        Guarantor will be deemed released from all its obligations under this Indenture,
        its Subsidiary Guarantee and the Registration Rights Agreement, and such
        Subsidiary Guarantee will terminate upon the discharge of the Securities
        pursuant to the provisions of Article
        VIII
        hereof.
        Each Subsidiary Guarantee with respect to a Security will automatically
        terminate immediately upon such Security's conversion and delivery of the
        shares
        of Common Stock and any other consideration payable in connection therewith.
        

       

      XII. MISCELLANEOUS

       

      12.01 Trust
        Indenture Act Controls.

       

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

       

      12.02 Notices.

       

      Deemed
        to
        be duly given if made in writing and delivered:

       

      (A) by
        hand
        (in which case such notice shall be effective upon delivery);

       

      (B) by
        facsimile (in which case such notice shall be effective upon receipt of
        confirmation of good transmission thereof); or

       

      (C) by
        overnight delivery by a nationally recognized courier service (in which case
        such notice shall be effective on the Business Day immediately after being
        deposited with such courier service, except that any notice to the Trustee
        shall
        not be deemed effective until delivery),

       

      in
        each
        case to the recipient party’s address or facsimile number, as applicable, set
        forth in this Section 12.02.
        The
        Company or the Trustee by notice to the other may designate additional or
        different addresses or facsimile numbers for subsequent notices or
        communications.

       

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

       

      If
        a
        notice or communication is mailed in the manner provided above, it is duly
        given, whether or not the addressee receives it; provided,
        however,
        that
        notwithstanding the foregoing, any notice to the Trustee shall not be effective
        until delivery.

       

      
        
          
          

        

        
          -70-

          
            

          

        

        
          
          

        

      

      If
        the
        Company mails a notice or communication to Holders, it shall mail a copy
        to the
        Trustee and each Agent at the same time. If the Trustee or the Securities
        Agent
        is required, pursuant to the express terms of this Indenture or the Securities,
        to mail a notice or communication to Holders, the Trustee or the Securities
        Agent, as the case may be, shall also mail a copy of such notice or
        communication to the Company.

       

      All
        notices or communications shall be in writing.

       

      The
        Company’s address is:

       

      Five
        Star
        Quality Care, Inc.

      400
        Centre Street, 

      Newton,
        Massachusetts 02458

      Attention:
        Chief Financial Officer

      Facsimile:
        (617) 796-8385

      

      

      The
        Trustee’s address is:

       

      U.S.
        Bank
        National Association

      One
        Federal Street, 3rd Floor

      Boston,
        MA 02110

      Attn:
        Corporate Trust Services/James P. Freeman 

      Facsimile:
        (617) 603-6667 

      

      

      12.03 Communication
        by Holders with Other Holders.

       

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

       

      12.04 Certificate
        and Opinion as to Conditions Precedent.

       

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

       

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

       

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

       

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

       

      
        
          
          

        

        
          -71-

          
            

          

        

        
          
          

        

      

      12.05 Statements
        Required in Certificate or Opinion.

       

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

       

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

       

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

       

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

       

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

       

      12.06 Rules
        by Trustee and Agents.

       

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

       

      12.07 Legal
        Holidays.

       

      A
        “Legal
        Holiday”
is
        a
        Saturday, a Sunday or a day on which banking institutions are not required
        to be
        open in the City of New York, in the State of New York or in the city in
        which
        the Trustee’s Corporate Trust Office is located. If a payment date is a Legal
        Holiday at a place of payment, payment may be made at that place on the next
        succeeding day that is not a Legal Holiday, and no interest shall accrue
        on that
        payment for the intervening period.

       

      A
        “Business
        Day”
is
        a
        day other than a Legal Holiday.

       

      12.08 Duplicate
        Originals.

       

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

       

      12.09 Governing
        Law.

       

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

       

      
        
          
          

        

        
          -72-

          
            

          

        

        
          
          

        

      

      12.10 No
        Adverse Interpretation of Other Agreements.

       

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

       

      12.11 Successors.

       

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

       

      12.12 Separability.

       

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

       

      12.13 Table
        of Contents, Headings, etc.

       

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

       

      12.14 Calculations
        in Respect of the Securities.

       

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

       

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

       

      
        
          
          

        

        
          -73-

          
            

          

        

        
          
          

        

      

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

       

      

      
        	 	
                FIVE
                  STAR QUALITY CARE, INC.

              	 
	 	 	 
	 	 	 
	 	
                By:
                  /s/ Bruce J. Mackey Jr.

              	 
	 	
                Name:
                  Bruce J. Mackey Jr.

              	 
	 	
                Title:
                  Treasurer, Chief Financial Officer and
                  Assistant Secretary

              	 
	 	 	 
	 	 	 
	 	
                FS
                  LAFAYETTE TENANT TRUST

              	 
	 	
                FS
                  LEISURE PARK TENANT TRUST

              	 
	 	
                FS
                  LEXINGTON TENANT TRUST 

              	 
	 	
                FS
                  TENANT POOL I TRUST 

              	 
	 	
                FS
                  TENANT POOL II TRUST 

              	 
	 	
                FS
                  TENANT POOL III TRUST 

              	 
	 	
                FS
                  TENANT POOL IV TRUST 

              	 
	 	 	 
	 	 	 
	 	
                By:
                  /s/ Bruce J. Mackey Jr.

              	 
	 	
                Name:
                  Bruce J. Mackey Jr.

              	 
	 	
                Title:
                  Treasurer, Chief Financial Officer and Assistant Secretary

              	 
	 	 	 
	 	 	 
	 	
                U.S.
                  BANK NATIONAL ASSOCIATION

                 

              	 
	 	 	 
	 	
                By:
                  /s/ James P. Freeman

              	 
	 	
                Name:
                  James P. Freeman

              	 
	 	
                Title:
                  Vice President

              	 

      

       

       

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      
        

          EXHIBIT
            A

          [Face
            of
            Security]

           

          FIVE
            STAR QUALITY CARE, INC.

           

          Certificate
            No. _______

           

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

           

          3.75%
            Convertible Senior Note due 2026

           

          CUSIP
            No.
            ____________

           

          Five
            Star
            Quality Care, Inc., a Maryland corporation (the “Company”),
            for
            value received, hereby promises to pay to Cede & Co., or its registered
            assigns, the principal sum of _____________________ dollars ($__________)
            on
            October 15, 2026 and to pay interest thereon, as provided on the reverse
            hereof,
            until the principal and any unpaid and accrued interest are paid or duly
            provided for.

           

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

           

          Record
            Dates: April 1 and October 1.

           

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

           

          IN
            WITNESS WHEREOF,
            FIVE
            STAR QUALITY CARE, INC. has caused this instrument to be duly
            signed.

           

          
            	 	
                    FIVE
                      STAR QUALITY CARE, INC.

                     

                  	 
	 	 	 
	 	
                    By:
                      __________________________

                  	 
	 	
                    Name:

                  	 
	 	
                    Title:

                  	 

          

          

          Dated:
            ________________

           

          
            
              
              

            

            
              A-1

              
                

              

            

            
              
              

            

          

        

        TRUSTEE’S
          CERTIFICATE OF AUTHENTICATION

         

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

         

        U.S.
          BANK
          NATIONAL ASSOCIATION, as
          Trustee

         

        By:
          __________________________________

        Authorized
          Signatory

         

        Dated:
          __________________

         

         

        
          
            
            

          

          
            A-2

            
              

            

          

          
            
            

          

        

        [REVERSE
          OF SECURITY]

         

        FIVE
          STAR QUALITY CARE, INC.

         

        3.75% Convertible
          Senior Note due 2026

         

        1. Interest.
          Five
          Star Quality Care, Inc., a Maryland corporation (the “Company”),
          promises to pay interest on the principal amount of this Security at the
          rate
per
          annum
          shown
          above. The Company will pay interest, payable semi-annually in arrears,
          on April
          15 and October 15 of each year, with the first payment to be made on April
          15,
          2007. Interest on the Securities will accrue on the principal amount from,
          and
          including, the most recent date to which interest has been paid or provided
          for
          or, if no interest has been paid, from, and including, October 18, 2006,
          in each
          case to, but excluding, the next interest payment date or Maturity Date,
          as the
          case may be. Interest will be computed on the basis of a 360-day year of
          twelve
          30-day months.

         

        2. Maturity.
          The
          Securities will mature on October 15, 2026.

         

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

         

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

         

        5. Indenture.
          The
          Company issued the Securities under an Indenture dated as of October 18,
          2006
          (the “Indenture”)
          between the Company and the Trustee. The terms of the Securities include
          those
          stated in the Indenture and those made part of the Indenture by reference
          to the
          Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) (the “TIA”)
          as
          amended and in effect from time to time. The Securities are subject to
          all such
          terms, and Holders are referred

         

        
          
            
            

          

          
            A-3

            
              

            

          

          
            
            

          

        

        to
          the
          Indenture and the TIA for a statement of such terms. The Securities are
          general
          senior obligations of the Company limited to $126,500,000 aggregate principal
          amount, except as otherwise provided in the Indenture (except for Securities
          issued in substitution for destroyed, mutilated, lost or stolen Securities).
          Terms used herein without definition and which are defined in the Indenture
          have
          the meanings assigned to them in the Indenture.

         

        6. Optional
          Redemption.

         

        The
          Company shall have the right, at the Company’s option, at any time, and from
          time to time, on a Redemption Date on or after October 20, 2011, to redeem
          all
          or any part of the Securities at a price payable in cash equal to one hundred
          percent (100%) of the principal amount of the Securities to be redeemed,
          plus
          accrued and unpaid interest, if any, to, but excluding, the Redemption
          Date.

         

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

         

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

         

        8. Purchase
          by the Company at the Option of the Holder.
          Subject
          to the terms and conditions of the Indenture, the Company shall become
          obligated
          to purchase, at the option of each Holder, the Securities held by such
          Holder on
          October 15, 2013, October 15, 2016 and October 15, 2021 (each, an “Option
          Purchase Date”)
          at an
          Option Purchase Price, payable in cash, equal to one hundred percent (100%)
          of
          the principal amount of the Securities to be purchased, plus accrued and
          unpaid
          interest, if any, to, but excluding, the applicable Option Purchase Date,
          upon
          delivery of a Purchase Notice containing the information set forth in the
          Indenture, at any time from the opening of business on the date that is
          twenty
          (20) Business Days prior to the applicable Option Purchase Date until the
          close
          of business on the Business Day immediately preceding the applicable Option
          Purchase Date and upon delivery of the Securities to the Paying Agent by
          the
          Holder as set forth in the Indenture; provided,
          however,
          that
          that such accrued and unpaid interest shall be paid to the Holder of record
          of
          such Securities at the close of business on the record date immediately
          preceding such Option Purchase Date

         

        
          
            
            

          

          
            A-4

            
              

            

          

          
            
            

          

        

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

         

        10. Conversion.

         

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

        

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

         

        Notwithstanding
          anything herein to the contrary, no Security may be converted after the
          close of
          business on the Business Day immediately preceding the Maturity
          Date.

        

        The
          initial Conversion Rate is 76.9231 shares of Common Stock per $1,000 principal
          amount of Securities (which results in an effective initial Conversion
          Price of
          $13.00 per share) subject to adjustment in the event of certain circumstances
          as
          specified in the Indenture. The Company will deliver cash in lieu of any
          fractional share. On conversion, no payment or adjustment for any unpaid
          and
          accrued interest or additional interest on the Securities will be made.
          If a
          Holder surrenders a Security for conversion after the close of business
          on the
          record date for the payment of an installment of interest and prior to
          the
          related interest payment date, such Security, when surrendered for conversion,
          must be accompanied by payment of an amount equal to the interest thereon
          which
          the registered Holder at the close of business on such record date is to
          receive; provided,
          however,
          that
          such payment of an amount equal to the interest described in the immediately
          preceding sentence in respect of a Security surrendered for

         

        
          
            
            

          

          
            A-5

            
              

            

          

          
            
            

          

        

        conversion
          shall not be required with respect to a Security that (i) is surrendered
          for
          conversion after the record date immediately preceding the Maturity Date,
          (ii)
          has been called for Redemption pursuant to Section
          3.04
          of the
          Indenture and paragraphs
          6 and
          7
          herein
          or (iii) is surrendered for conversion after a record date for the payment
          of an
          installment of interest and on or before the related interest payment date,
          where, pursuant to Section
          3.09 of
          the
          Indenture, the Company has specified, with respect to a Fundamental Change,
          a
          Fundamental Change Repurchase Date that is after such record date and on
          or
          before such interest payment date; provided
          further,
          that,
          if the Company shall have, prior to the Conversion Date with respect to
          a
          Security, defaulted in a payment of interest on such Security, then in
          no event
          shall the Holder of such Security who surrenders such Security for conversion
          be
          required to pay such defaulted interest or the interest that shall have
          accrued
          on such defaulted interest pursuant to Section
          2.12
          of the
          Indenture or otherwise 

         

        The
          Conversion Rate applicable to each Security that is surrendered for conversion,
          in accordance with the Securities and Article
          X
          of the
          Indenture, at any time during the Make-Whole Conversion Period with respect
          to a
          Make-Whole Fundamental Change shall be increased to an amount equal to
          the
          Conversion Rate that would, but for Section
          10.15
          of the
          Indenture,
          otherwise apply to such Security pursuant to Article
          X
          of the
          Indenture,
          plus an
          amount equal to the Make-Whole
          Applicable Increase;
          provided,
          however,
          that
          such increase to the Conversion Rate shall not apply if such
          Make-Whole Fundamental Change is announced by the Company but shall not
          be
          consummated. 

         

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

         

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

         

        13. Merger
          or Consolidation.
          The
          Company shall not consolidate with, or merge with or into, or sell, transfer,
          lease, convey or otherwise dispose of all or substantially all of the property
          or assets of the Company, or all or substantially all of the property or
          assets
          of the Company and the Subsidiaries on a consolidated basis, to another
          person,
          whether in a single transaction or series of related transactions, unless
          (i)
          such other person is a corporation

         

        
          
            
            

          

          
            A-6

            
              

            

          

          
            
            

          

        

        organized
          and existing under the laws of the United States, any State thereof or
          the
          District of Columbia; (ii) such person assumes by supplemental indenture
          all the
          obligations of the Company under the Securities and the Indenture; and
          (iii)
          immediately after giving effect to the transaction, no Default or Event
          of
          Default shall exist.

         

        14. Amendments,
          Supplements and Waivers.
          Subject
          to certain exceptions, the Indenture or the Securities may be amended or
          supplemented with the consent of the Holders of at least a majority in
          aggregate
          principal amount of the outstanding Securities, and certain existing Defaults
          or
          Events of Default may be waived with the consent of the Holders of a majority
          in
          aggregate principal amount of the Securities then outstanding. In accordance
          with the terms of the Indenture, the Company and the Trustee may enter
          into a
          supplemental indenture to amend or supplement this Indenture or the Securities
          without notice to or the consent of any Securityholder: (i) to comply with
          Sections 5.01
          and
10.12
          of the
          Indenture; (ii) to make any changes or modifications to the Indenture necessary
          in connection with the registration of the Securities under the Securities
          Act
          pursuant to the Registration Rights Agreement or the qualification of the
          Indenture under the TIA; (iii) to secure the obligations of the Company
          in
          respect of the Securities; (iv) to add to the covenants of the Company
          described
          in the Indenture for the benefit of Securityholders or to surrender any
          right or
          power conferred upon the Company; (v) to make provisions with respect to
          adjustments to the Conversion Rate as required by the Indenture or to increase
          the Conversion Rate in accordance with the Indenture; and (vi) to add Subsidiary
          Guarantees with respect to the Securities, or remove Subsidiary Guarantees
          as
          provided in the Indenture. In addition, the Company and the Trustee may
          enter
          into a supplemental indenture without the consent of Holders of the Securities
          to cure any ambiguity, defect, omission or inconsistency in the Indenture
          in a
          manner that does not, individually or in the aggregate with all other
          modifications made or to be made to the Indenture, adversely affect the
          rights
          of any Holder.

         

        15. Defaults
          and Remedies.

         

        If
          an
          Event of Default (excluding an Event of Default specified in Section 6.01(viii)
          or
          (ix)
          of the
          Indenture with respect to the Company (but including an Event of Default
          specified in Section
          6.01(viii) or
          (ix)
          of the
          Indenture solely with respect to a Significant Subsidiary of the Company
          or any
          group of Subsidiaries that in the aggregate would constitute a Significant
          Subsidiary of the Company)) occurs and is continuing, the Trustee by written
          notice to the Company or the Holders of at least twenty five percent (25%)
          in
          principal amount of the Securities then outstanding by written notice to
          the
          Company and the Trustee may declare the Securities to be due and payable.
          Upon
          such declaration, the principal of, and any premium and accrued and unpaid
          interest (including any additional interest) on, all Securities shall be
          due and
          payable immediately. If an Event of Default specified in Section 6.01(viii)
          or
          (ix)
          of the
          Indenture with respect to the Company (excluding, for purposes of this
          sentence,
          an Event of Default specified in Section 6.01(viii)
          or
          (ix)
          of the
          Indenture solely with respect to a Significant Subsidiary of the Company
          or any
          group of Subsidiaries that in the aggregate would constitute a Significant
          Subsidiary of the Company) occurs, the principal of, and premium and accrued
          and
          unpaid interest (including any additional interest) on, all the Securities
          shall
ipso
          facto become
          and be immediately due and payable without any declaration or other act
          on the
          part of the Trustee or any Holder. The Holders of a majority in aggregate
          principal amount of the Securities then outstanding by written notice to
          the
          Trustee may rescind or annul an acceleration and its

         

        
          
            
            

          

          
            A-7

            
              

            

          

          
            
            

          

        

        consequences
          if (A) the rescission would not conflict with any order or decree, (B)
          all
          existing Events of Default, except the nonpayment of principal, premium
          or
          interest (including additional interest) that has become due solely because
          of
          the acceleration, have been cured or waived and (C) all amounts due to
          the
          Trustee under Section
          7.07
          of the
          Indenture have been paid.

         

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

         

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

         

        16. Registration
          Rights.
          The
          Holders are entitled to registration rights as set forth in the Registration
          Rights Agreement. The Holders shall be entitled to receive additional interest
          in certain circumstances, all as set forth in the Registration Rights
          Agreement.

         

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

         

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

         

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

         

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

         

        
          
            
            

          

          
            A-8

            
              

            

          

          
            
            

          

        

        Five
          Star
          Quality Care, Inc.

        400
          Centre Street,

        Newton,
          Massachusetts 02458

        Attention:
          Chief Financial Officer

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

        
          
            
            

          

          
            A-9

            
              

            

          

          
            
            

          

        

        

          [FORM
            OF
            ASSIGNMENT]

          
            	 
	
                    I
                      or we assign to

                  	 
	
                     

                    PLEASE
                      INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER

                    __________________________________________

                     

                    ____________________________________________________________

                  	 
	
                    (please
                      print or type name and address)

                  
	
                    ____________________________________________________________

                     

                    ____________________________________________________________

                     

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

                  
	
                     

                    ______________________________________________________________________

                     

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

                     

                  
	
                    Dated:_______________________________

                  	
                    _______________________________________________

                    NOTICE:
                      The signature on this assignment must correspond 

                    with
                      the name as it appears upon the face of the within Security

                    in
                      every particular without alteration or enlargement or any 

                    change
                      whatsoever and be guaranteed by a guarantor institution 

                    participating
                      in the Securities Transfer Agents Medallion Program

                     or
                      in such other guarantee program acceptable to the
                      Trustee.

                  
	
                     

                    Signature
                      Guarantee:
                      __________________________________________________________

                  

          

        

         

         

        
          
            
            

          

          
            A-10

            
              

            

          

          
            
            

          

        

        In
          connection with any transfer of this Security occurring prior to the Resale
          Restriction Termination Date, the undersigned confirms that it is making,
          and it
          has not utilized any general solicitation or general advertising in connection
          with, the transfer:

         

        [Check
          One]

         

        
          	
                  (1)

                   

                	
                  ____

                   

                	
                  to
                    the Company or any Subsidiary thereof, or

                   

                
	
                  (2)

                   

                	
                  ____

                   

                	
                  to
                    a qualified institutional buyer in compliance with the exemption
                    from
                    registration provided by Rule 144A under the Securities Act of
                    1933, as
                    amended, or

                   

                
	
                  (3)

                   

                	
                  ____

                   

                	
                  pursuant
                    to, and in compliance with, the exemption from registration provided
                    by
                    Rule 144 under the Securities Act of 1933, as amended, or

                   

                
	
                  (4)

                   

                	
                  ____

                   

                	
                  pursuant
                    to, and in compliance with, an exemption from registration under
                    the
                    Securities Act of 1933, as amended, other than Rule 144A or Rule
                    144,
                    or

                   

                
	
                  (5)

                   

                	
                  ____

                   

                	
                  pursuant
                    to an effective registration statement under the Securities Act
                    of 1933,
                    as amended,

                   

                

        

        

         

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

        

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

        

        Unless
          one of the items (1) through (5) is checked, the Registrar will refuse
          to
          register any of the Securities evidenced by this certificate in the name
          of any
          person other than the registered Holder thereof; provided,
          however,
          that if
          item (3) or (4) is checked, the Company or the Registrar may require, prior
          to
          registering any such transfer of the Securities, in their sole discretion,
          such
          written legal opinions, certifications and other information as the Registrar or
          the Company have reasonably requested to confirm that such transfer is
          being
          made pursuant to an exemption from, or in a transaction not subject to,
          the
          registration requirements of the Securities Act of 1933, as amended. If
          item (2)
          is checked, the purchaser must complete the certification below.

        

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

        

        
          	
                  Dated:
                    __________________________

                	
                  Signed:
                    ___________________________________

                
	 	
                       
(Sign
                    exactly as name
                    appears on the other 

                        side
                    of this
                    Security)

                

        

        

        Signature
          Guarantee:          
          

         

         

        
          
            
            

          

          
            A-11

            
              

            

          

          
            
            

          

        

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

         

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

        

        
          	
                  Dated:
                    __________

                	
                  _________________________________________

                
	 	
                  NOTICE:
                    To be executed by an executive
                    officer

                

        

         

         

         

         

         

         

         

        
 

        
          
            
            

          

          
            A-12

            
              

            

          

          
            
            

          

        

        

          CONVERSION
            NOTICE

          

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

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

                     

                    $__________________

                     

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

                     

                    __________________________________________________________________________

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

                     

                    ____________________________________________________________________________

                     

                    ____________________________________________________________________________

                     

                    ____________________________________________________________________________

                     

                    ____________________________________________________________________________

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

                  

          

          

          _____________________________________________________________________________

          

          
            	
                    Date:______________

                  	
                    Signature(s):
                      _____________________________________

                  
	 	
                     

                    ________________________________________________

                    (Sign
                      exactly as your name(s) appear(s) on 

                    the
                      other side of this Security)

                  
	 	 
	
                    Signature(s)
                      guaranteed by:

                  	
                    _________________________________________________

                  
	 	
                    (All
                      signatures must be guaranteed by a guarantor institution 

                    participating
                      in the Securities Transfer Agents Medallion Program

                     or
                      in such other guarantee program acceptable to the Trustee.)

                     

                  

          

        

         

         

        
          
            
            

          

          
            A-13

            
              

            

          

          
            
            

          

        

        PURCHASE
          NOTICE

         

        Certificate
          No. of Security: ___________

         

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

         

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

         

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

         

        $
          __________________________________

        (in
          an
          integral multiple of $1,000)

         

        
          	
                  Date:______________

                	
                  Signature(s):
                    _____________________________________

                
	 	
                   

                  ________________________________________________

                  (Sign
                    exactly as your name(s) appear(s) on 

                  the
                    other side of this Security)

                
	 	 
	
                  Signature(s)
                    guaranteed by:

                	
                  _________________________________________________

                
	 	
                  (All
                    signatures must be guaranteed by a guarantor institution 

                  participating
                    in the Securities Transfer Agents Medallion Program 

                  or
                    in such other guarantee program acceptable to the
                    Trustee.)

                

        

         

         

         

         

         

         

        
          
            
            

          

          
            A-14

            
              

            

          

          
            
            

          

        

        SCHEDULE
          A

        

        SCHEDULE
          OF EXCHANGES OF INTERESTS IN THE GLOBAL SECURITYa 

        

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

        

        
          	
                  Date
                    of Exchange

                	
                  Amount
                    of decrease in Principal amount of this Global Security

                	
                  Amount
                    of Increase in Principal amount of this Global Security

                	
                  Principal
                    amount of this Global

                  Security
                    following

                  such
                    decrease

                  or
                    increase

                	
                  Signature
                    or authorized signatory of Trustee or Note
                    Custodian

                

        

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

        

          

          
            a This
              is included in Global Securities only.

             

             

            
              
                
                

              

              
                A-15

                
                  

                

              

              
                
                

              

            

          

        

        EXHIBIT
          B-1

         

        FORM
          OF
          PRIVATE PLACEMENT LEGEND

         

        THIS
          SECURITY, THE COMMON SHARES ISSUABLE UPON CONVERSION OF THIS SECURITY AND
          THE
          RELATED SUBSIDIARY GUARANTEES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
          ACT
          OF 1933, AS AMENDED (THE ‘‘SECURITIES ACT’’), AND MAY NOT BE OFFERED, SOLD,
          PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE FOLLOWING
          SENTENCE. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN,
          THE
          ACQUIRER:

        

        (1)
           REPRESENTS
          THAT IT AND ANY ACCOUNT FOR WHICH IT IS ACTING IS A ‘‘QUALIFIED INSTITUTIONAL
          BUYER’’ (WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT) AND THAT IT
          EXERCISES SOLE INVESTMENT DISCRETION WITH RESPECT TO EACH SUCH ACCOUNT,
          AND

        

        (2)
           AGREES
          FOR THE BENEFIT OF THE COMPANY THAT IT WILL NOT OFFER, SELL, PLEDGE OR
          OTHERWISE
          TRANSFER THIS SECURITY OR ANY BENEFICIAL INTEREST HEREIN PRIOR TO THE DATE
          THAT
          IS THE LATER OF (X) TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE
          HEREOF
          AND THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY
          WAS THE
          OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF THIS SECURITY) OR SUCH SHORTER
          PERIOD OF TIME AS PERMITTED BY RULE 144(K) UNDER THE SECURITIES ACT OR
          ANY
          SUCCESSOR PROVISION THEREUNDER, AND (Y) SUCH LATER DATE, IF ANY, AS MAY
          BE
          REQUIRED BY APPLICABLE LAW, EXCEPT ONLY:

        

        (A)
           TO
          THE
          COMPANY OR ANY SUBSIDIARY THEREOF, OR

         

        (B)
           PURSUANT
          TO A REGISTRATION STATEMENT WHICH HAS BECOME EFFECTIVE UNDER THE SECURITIES
          ACT,
          OR

         

        (C)
           TO
          A
          QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES
          ACT, OR

         

        (D)
           PURSUANT
          TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES
          ACT
          OR ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
          THE
          SECURITIES ACT.

         

        PRIOR
          TO
          THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH (2)(C) ABOVE, A DULY
          COMPLETED AND SIGNED CERTIFICATE (THE FORM OF WHICH MAY BE OBTAINED FROM
          THE
          TRUSTEE) MUST BE DELIVERED TO THE TRUSTEE. PRIOR TO THE REGISTRATION OF
          ANY
          TRANSFER IN ACCORDANCE WITH (2)(D) ABOVE, THE COMPANY AND THE TRUSTEE RESERVE
          THE RIGHT TO REQUIRE THE DELIVERY OF SUCH LEGAL OPINIONS, CERTIFICATIONS
          OR
          OTHER EVIDENCE AS MAY REASONABLY BE REQUIRED IN ORDER TO DETERMINE THAT
          THE
          PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE WITH THE SECURITIES ACT AND
          APPLICABLE STATE SECURITIES LAWS. NO REPRESENTATION IS MADE AS TO THE
          AVAILABILITY OF ANY EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
          SECURITIES ACT.

        

        
          
            
              

            

            
            

          

          
            B-1-1

            
              

            

          

          
            
            

            
            

          

        

        EXHIBIT
          B-2

        FORM
          OF
          LEGEND FOR GLOBAL SECURITY

         

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

         

        THIS
          SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
          REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE
          OF A
          DEPOSITARY OR A SUCCESSOR DEPOSITARY. THIS SECURITY IS NOT EXCHANGEABLE
          FOR
          SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY
          OR ITS
          NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE,
          AND NO
          TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A
          WHOLE BY
          THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY
          TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED
          EXCEPT
          IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

         

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

         

        TRANSFERS
          OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT
          IN PART,
          TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S
          NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED
          TO
          TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN SECTION
          2.16 OF
          THE INDENTURE.

         

        

         

        

        
          
            
              

            

            
            

          

          
            B-2-1

            
              

            

          

          
            
            

            
            

          

        

        EXHIBIT
          B-3

        

        FORM
          OF
          LEGEND REGARDING REGISTRATION RIGHTS AGREEMENT AND SUBSIDIARY
          GUARANTEES

         

        THIS
          SECURITY SHALL BE ENTITLED TO THE BENEFITS OF THAT CERTAIN REGISTRATION
          RIGHTS
          AGREEMENT, DATED OCTOBER 18, 2006, AMONG FIVE STAR QUALITY CARE, INC.,
          THE
          GUARANTORS NAMED THEREIN, UBS
          SECURITIES LLC AND THE OTHER PARTIES NAMED THEREIN.

         

        THIS
          SECURITY SHALL BE ENTITLED TO THE BENEFITS OF THE SUBSIDIARY GUARANTEES
          REFERRED
          TO IN THAT CERTAIN INDENTURE, DATED OCTOBER 18, 2006, AMONG FIVE STAR QUALITY
          CARE, INC., THE GUARANTORS NAMED THEREIN AND U.S. BANK NATIONAL ASSOCIATION,
          AS
          TRUSTEE UNDER THE INDENTURE.

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

        
          
            
            

          

          
            B-3-1

            
              

            

          

          
            
            

          

        

        EXHIBIT
          C

        Form
          of Notice of Transfer Pursuant to Registration Statement

         

        Five
          Star
          Quality Care, Inc.

        400
          Centre Street, 

        Newton,
          Massachusetts 02458

        Attention:
          Chief Financial Officer 

        

        U.S.
          Bank
          National Association

        One
          Federal Street, 3rd Floor

        Boston,
          MA 02110

        Attention:
          Corporate Trust Services/James P. Freeman

        

        Re: Five
          Star
          Quality Care, Inc. (the “Company”)
          3.75%
          Convertible Senior Notes due 2026 (the “Securities”)

         

        Ladies
          and Gentlemen:

         

        Please
          be
          advised that _____________ has transferred $___________ aggregate principal
          amount of the Securities and ________ shares of the Common Stock, $0.01
          par
          value per share, of the Company issued on conversion of the Securities
          (“Stock”)
          pursuant to an effective Shelf Registration Statement on Form S-3 (File
          No.
          333-________).

         

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

         

                    Very
          truly
          yours,

         

        

         

                    _________________________

                                                                (Name)

         

         

        
          
            
            

          

          
            C-1

            
              

            

          

          
            
            

          

        

        

          EXHIBIT
            D

           

          Form
            of Opinion of Counsel in Connection with Registration of
            Securities

           

          U.S.
            Bank
            National Association

          One
            Federal Street, 3rd Floor

          Boston,
            MA 02110

          Attention:
            Corporate Trust Services/James P. Freeman

          

           

          Re: Five
            Star
            Quality Care, Inc. (the “Company”)
            3.75%
            Convertible Senior Notes due 2026 (the “Securities”)

           

          Ladies
            and Gentlemen:

           

          Reference
            is made to the Securities issued pursuant to a certain Indenture dated
            as of
            October 18, 2006 by and between the Company and U.S. Bank National Association,
            as trustee (the “Trustee”).
            The
            Company issued $126,500,000 principal amount of Securities on of October
            18,
            2006 in transactions exempt from registration under the Securities Act
            of 1933,
            as amended (the “Securities
            Act”).
            The
            Company has filed with the Securities and Exchange Commission (the “SEC”)
            [a]
            [Amendment No. [_] to the] Registration Statement on Form S-3 (File No.
            333-______) (the “Registration
            Statement”)
            relating to the registration under the Securities Act of $______________
            principal amount of the Securities and the shares of Common Stock of
            the Company
            (the “Shares”)
            issuable upon conversion of the Securities being registered. The Registration
            Statement was declared effective by order of the SEC dated
            _____________.

          

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

           

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

           

          Yours
            truly,

          
            
              
                

              

              
              

            

            
              D-1

              
                

              

            

            
              
              

              
                

                 

              

            

          

          EXHIBIT
            E

           

          Form
            of Notation of Guarantee

           

          For
            value
            received, each Guarantor (which term includes any successor Person under
            the
            Indenture) has, jointly and severally, fully and unconditionally guaranteed,
            to
            the extent set forth, and subject to the provisions provided, in the
            Indenture
            (the “Indenture”),
            dated
            October 18, 2006, among Five Star Quality Care, Inc., the Guarantors
            named
            therein and U.S. Bank National Association, as trustee (the “Trustee”),
            (a)
            the due and punctual payment of the principal of, premium, if any, and
            interest
            or additional in interest, if any, on the Securities, whether at maturity,
            by
            acceleration, redemption or otherwise, the due and punctual payment of
            interest
            on overdue principal and premium, if any, and, to the extent permitted
            by law,
            interest or additional interest, if any, on the Securities, and the due
            and
            punctual performance of all other obligations of the Company to the Holders
            or
            the Trustee under the Indenture or the Securities or the Registration
            Rights
            Agreement, all in accordance with the terms of the Indenture, the Securities
            and
            the Registration Rights Agreement; and (b) in case of any extension of
            time of
            payment or renewal of any Securities, any such shares or any of such
            other
            obligations, that the same will be promptly paid in full when due or
            performed
            in accordance with the terms of the extension or renewal, whether at
            stated
            maturity, by acceleration or otherwise. The obligations of the Guarantors
            to the
            Holders of Securities and to the Trustee pursuant to the Subsidiary Guarantees
            and the Indenture are expressly set forth in Article
            XI
            of the
            Indenture, and reference is hereby made to the Indenture for the precise
            terms
            of the Subsidiary Guarantees. Each Holder of a Security, by accepting
            the same,
            agrees to, and shall be bound by, such provisions.

           

          Each
            Guarantor, and, by its acceptance of Securities, each Holder, hereby
            confirms
            that it is the intention of all such parties that the Subsidiary Guarantee
            of
            each Guarantor not constitute a fraudulent transfer or conveyance for
            purposes
            of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform
            Fraudulent
            Transfer Act or any similar federal or state law to the extent applicable
            to any
            Subsidiary Guarantee. To effectuate the foregoing intention, the Trustee,
            the
            Holders and the Guarantors hereby irrevocably agree that the obligations
            of each
            Guarantor shall be limited to the maximum amount as will, after giving
            effect to
            all other contingent and fixed liabilities of such Guarantor that are
            relevant
            under such laws, and after giving effect to any collections from, rights
            to
            receive contribution from or payments made by or on behalf of any other
            Guarantor in respect of the obligations of such other Guarantor under
            Article
            XI of
            the
            Indenture, result in the obligations of such Guarantor under its Subsidiary
            Guarantee not constituting a fraudulent transfer or conveyance.

           

          Capitalized
            terms used herein without definition shall have the respective meanings
            ascribed
            to them in the Indenture.

           

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

          
            
              
              

            

            
              E-1

              
                

              

            

            
              
              

            

          

          IN
            WITNESS WHEREOF,
            the
            [Guarantor] has caused this Subsidiary Guarantee to be duly executed
            as of this
            __________________________.

          

          

          
            	 	 	
                    [Guarantor]

                     

                  	 
	 	 	 	 
	 	 	
                    By:
                      __________________________

                  	 
	 	 	
                    Name:

                  	 
	 	 	
                    Title:

                  	 

          

          

          

          
            
              
              

            

            
              E-2

              
                

              

            

            
              
              

            

          

        

         

        

          EXHIBIT
            F

           

          Form
            of Supplemental Indenture to be Delivered by Subsequent
            Guarantors

           

          SUPPLEMENTAL
            INDENTURE
            (this
“Supplemental
            Indenture”),
            dated
            as of ________________, among __________________ (the “Guaranteeing
            Subsidiary”),
            a
            subsidiary of Five Star Quality Care, Inc. (or its permitted successor),
            a
            Maryland corporation (the “Company”),
            the
            Company, the other Guarantors (as defined in the Indenture referred to
            herein)
            and U.S. Bank National Association, as trustee under the Indenture referred
            to
            herein (the “Trustee”).

           

          W
            I T N E S S E T H

           

          WHEREAS,
            the
            Company has heretofore executed and delivered to the Trustee an indenture
            (the
“Indenture”),
            dated
            as of October 18, 2006, providing for the issuance of the Company’s 3.75%
            Convertible Senior Notes due 2026 (the “Securities”);

           

          WHEREAS,
            the
            Indenture provides that under certain circumstances the Guaranteeing
            Subsidiary
            shall execute and deliver to the Trustee a supplemental indenture pursuant
            to
            which the Guaranteeing Subsidiary shall guarantee all of the Company’s
            Obligations under the Securities, the Indenture and the “Registration Rights
            Agreement” (as defined in the Indenture) on the terms and conditions set forth
            herein (the “Subsidiary
            Guarantee”);
            and

           

          WHEREAS,
            pursuant to Section
            11.04 of
            the
            Indenture, the Trustee is authorized to execute and deliver this Supplemental
            Indenture.

           

          NOW,
            THEREFORE,
            in
            consideration of the foregoing and for other good and valuable consideration,
            the receipt of which is hereby acknowledged, the Guaranteeing Subsidiary
            and the
            Trustee mutually covenant and agree for the equal and ratable benefit
            of the
            Holders of the Securities as follows:

           

          1. Definitions
            and Construction.
            Capitalized terms used herein without definition shall have the meanings
            assigned to them in the Indenture. The terms “herein,” “hereof,” “hereto,”
“hereinafter” and similar terms, as used in this Supplemental Indenture, shall
            in each case refer to this Supplemental Indenture as a whole and not
            to any
            particular section, paragraph, sentence or other subdivision of this
            Supplemental Indenture.

           

          2. Agreement
            to Guarantee.
            The
            Guaranteeing Subsidiary hereby agrees that Article
            XI
            of the
            Indenture shall apply to the Guaranteeing Subsidiary to the same effect
            as if
            the Guaranteeing Subsidiary had been named as a “Guarantor” in the
            Indenture.

           

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

           

          
            
              
              

            

            
              F-1

              
                

              

            

            
              
              

            

          

          4. Counterparts.
            The
            parties may sign any number of copies of this Supplemental Indenture.
            Each
            signed copy shall be an original, but all of them together represent
            the same
            Supplemental Indenture.

           

          5. Effect
            of Headings.
            The
            Section headings herein are for convenience only and shall not affect
            the
            construction hereof.

           

          6. The
            Trustee.
            The
            Trustee shall not be responsible in any manner whatsoever for or in respect
            of
            the validity or sufficiency of this Supplemental Indenture or for or
            in respect
            of the recitals contained herein, all of which recitals are made solely
            by the
            Guaranteeing Subsidiary and the Company.

           

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

           

          

          
            
              
              

            

            
              F-2

              
                

              

            

            
              
              

            

          

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

          

          
            	 	 	
                    [Guaranteeing
                      subsidiary]

                     

                  	 
	 	 	 	 
	 	 	
                    By:
                      __________________________

                  	 
	 	 	
                    Name:

                  	 
	 	 	
                    Title:

                  	 

          

          

          

          

          
            	 	 	
                    FIVE
                      STAR QUALITY CARE, INC.

                     

                  	 
	 	 	 	 
	 	 	
                    By:
                      __________________________

                  	 
	 	 	
                    Name:

                  	 
	 	 	
                    Title:

                  	 

          

          

          

          
            	 	 	
                    [Existing
                      Guarantors]

                     

                  	 
	 	 	 	 
	 	 	
                    By:
                      __________________________

                  	 
	 	 	
                    Name:

                  	 
	 	 	
                    Title:

                  	 

          

          

          

          
            	 	 	
                    U.S.
                      Bank national association

                     

                  	 
	 	 	 	 
	 	 	
                    By:
                      __________________________

                  	 
	 	 	
                    Name:

                  	 
	 	 	
                    Title:

                  	 

          

          

          
            
              
              

            

            
              F-3

              
                

              

            

            
              
              

            

          

          

          SCHEDULE
            1

           

          Schedule
            of Guarantors

           

          FS
            Lafayette Tenant Trust

           

          FS
            Leisure Park Tenant Trust

           

          FS
            Lexington Tenant Trust 

           

          FS
            Tenant
            Pool I Trust 

           

          FS
            Tenant
            Pool II Trust 

           

          FS
            Tenant
            Pool III Trust 

           

          FS
            Tenant
            Pool IV Trust 

           

           

           

           

           

          S-1

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