Document:

Exhibit 4.1  

REGISTRATION RIGHTS AGREEMENT  

 by and among  

 IMCLONE SYSTEMS INCORPORATED  

 as Issuer,  

 and  

 MORGAN STANLEY & CO. INCORPORATED  

 and  

 UBS SECURITIES LLC  

 as the Initial Purchasers  

 Dated as of May 7, 2004

 

        THIS REGISTRATION RIGHTS AGREEMENT is made and entered into as of May 7, 2004, by and among ImClone Systems Incorporated, a Delaware
corporation (the "Company"), and Morgan Stanley & Co. Incorporated and UBS Securities LLC (together, the "Initial
Purchasers"), pursuant to the Purchase Agreement dated May 3, 2004 (the "Purchase Agreement") among the Company and the
Initial Purchasers. In order to induce the Initial Purchasers to enter into the Purchase Agreement, the Company has agreed to provide the registration rights set forth in this Agreement. The execution
of this Agreement is a condition to the closing under the Purchase Agreement. 

        The
Company agrees with the Initial Purchasers, (i) for their benefit as Initial Purchasers and (ii) for the benefit of the beneficial owners (including the Initial
Purchasers) from time to time of the Notes (as defined herein) and the beneficial owners from time to time of the Underlying Common Stock (as defined herein) issued upon conversion of the Notes (each
of the foregoing a "Holder" and together the "Holders"), as follows: 

        Section 1.  Definitions. Capitalized terms used herein without definition shall have their respective meanings set forth in the
Purchase Agreement. As used in this Agreement, the following terms shall have the following meanings: 

        "Additional Interest" has the meaning set forth in Section 2(e) hereof. 

        "Additional Interest Accrual Period" has the meaning set forth in Section 2(e) hereof. 

        "Additional Interest Payment Date" means each May 15 and November 15. 

        "Affiliate" means with respect to any specified person, an "affiliate," as defined in Rule 144, of such person. 

        "Amendment Effectiveness Deadline Date" has the meaning set forth in Section 2(d) hereof. 

        "Applicable Conversion Price" as of any date of determination means the Conversion Price in effect as of such date of determination or, if
no Notes are then outstanding, the Conversion Price that would be in effect were Notes then outstanding. 

        "Business Day" means each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which banking institutions in The City of
New York are authorized or obligated by law or executive order to close. 

        "Common Stock" means the shares of common stock, par value $.001 per share, of the Company and any other shares of common stock as may
constitute "Common Stock" for purposes of the Indenture, including the Underlying Common Stock. 

        "Conversion Price" has the meaning assigned such term in the Indenture. 

        "Deferral Notice" has the meaning set forth in Section 3(i) hereof. 

        "Deferral Period" has the meaning set forth in Section 3(i) hereof. 

        "Effectiveness Deadline Date" has the meaning set forth in Section 2(a) hereof. 

        "Effectiveness Period" means the period commencing on the date hereof and ending on the date that all Registrable Securities have ceased
to be Registrable Securities. 

        "Event" has the meaning set forth in Section 2(e) hereof. 

        "Event Date" has the meaning set forth in Section 2(e) hereof. 

        "Event Termination Date" has the meaning set forth in Section 2(e) hereof. 

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

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        "Filing Deadline Date" has the meaning set forth in Section 2(a) hereof. 

        "Holder" has the meaning set forth in the second paragraph of this Agreement. 

        "Indenture" means the Indenture, dated as of the Closing Date, between the Company and The Bank of New York, as trustee, pursuant to which
the Notes are being issued. 

        "Initial Purchasers" means Morgan Stanley & Co. Incorporated and UBS Securities LLC. 

        "Initial Shelf Registration Statement" has the meaning set forth in Section 2(a) hereof. 

        "Issue Date" means the first date of original issuance of the Notes. 

        "Losses" has the meaning set forth in Section 6 hereof. 

        "Material Event" has the meaning set forth in Section 3(i) hereof. 

        "Notes" means the 13/8% Convertible Notes due 2024 of the Company to be purchased pursuant to the Purchase Agreement. 

        "Notice and Questionnaire" means a written notice delivered to the Company containing substantially the information called for by the
Selling Securityholder Notice and Questionnaire attached as Annex A to the Offering Memorandum of the Company dated May 3, 2004 relating to the Notes. 

        "Notice Holder" means, on any date, any Holder that has delivered a Notice and Questionnaire to the Company on or prior to such date. 

        "Prospectus" means the prospectus included in any Registration Statement (including, without limitation, a prospectus that discloses
information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the Securities Act), as amended or
supplemented by any amendment or prospectus supplement, including post-effective amendments, and all materials incorporated by reference or explicitly deemed to be incorporated by
reference in such Prospectus. 

        "Purchase Agreement" has the meaning set forth in the preamble hereof. 

        "Record Holder" means (i) with respect to any Additional Interest Payment Date relating to any Notes as to which any Additional
Interest has accrued, the holder of record of such Note on the record date with respect to the interest payment date under the Indenture on which such Additional Interest Payment Date shall occur and
(ii) with respect to any Additional Interest Payment Date relating to the Underlying Common Stock as to which any such Additional Interest has accrued, the registered holder of such Underlying
Common Stock fifteen (15) days prior to such Additional Interest Payment Date. 

        "Registrable Securities" means the Notes until such Notes have been converted into or exchanged for the Underlying Common Stock and, at
all times subsequent to any such conversion or exchange the Underlying Common Stock and any securities into or for which such Underlying Common Stock has been converted or exchanged, and any security
issued with respect thereto upon any stock dividend, split or similar event until, in the case of any such security, (A) the earliest of (i) its effective registration under the
Securities Act and resale in accordance with the Registration Statement covering it, (ii) expiration of the holding period that would be applicable thereto under Rule 144(k) or
(iii) its sale to the public pursuant to Rule 144 (or any similar provision then in force, but not Rule 144A) under the Securities Act, and (B) as a result of the event or
circumstance described in any of the foregoing clauses (i) through (iii), the legend with respect to transfer restrictions required under the Indenture are removed or removable in accordance
with the terms of the Indenture or such legend, as the case may be. 

        "Registration Expenses" has the meaning set forth in Section 5 hereof. 

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        "Registration Statement" means any registration statement of the Company that covers any of the Registrable Securities pursuant to the
provisions of this Agreement including the Prospectus, amendments and supplements to such registration statement, including post-effective amendments, all exhibits, and all materials
incorporated by reference or explicitly deemed to be incorporated by reference in such registration statement. 

        "Restricted Securities" means "Restricted Securities" as defined in Rule 144. 

        "Rule 144" means Rule 144 under the Securities Act, as such Rule may be amended from time to time, or any similar rule or
regulation hereafter adopted by the SEC. 

        "Rule 144A" means Rule 144A under the Securities Act, as such Rule may be amended from time to time, or any similar rule or
regulation hereafter adopted by the SEC. 

        "SEC" means the Securities and Exchange Commission. 

        "Securities Act" means the Securities Act of 1933, as amended, and the rules and regulations promulgated by the SEC thereunder. 

        "Shelf Registration Statement" has the meaning set forth in Section 2(a) hereof. 

        "Special Counsel" means Cravath, Swaine & Moore LLP or such other successor counsel as shall be specified by the Holders of a
majority of the Registrable Securities, but which may, with the written consent of the Initial Purchasers (which shall not be unreasonably withheld), be another nationally recognized law firm
experienced in securities law matters designated by the Company, the reasonable fees and expenses of which will be paid by the Company pursuant to Section 5 hereof. Throughout this Agreement,
for purposes of determining the holders of a majority of Registrable Securities in this definition, Holders of Notes shall be deemed to be the Holders of the number of shares of Underlying Common
Stock into which such Notes are or would be convertible as of the date the consent is requested. 

        "Subsequent Shelf Registration Statement" has the meaning set forth in Section 2(b) hereof. 

        "TIA" means the Trust Indenture Act of 1939, as amended. 

        "Trustee" means The Bank of New York, the Trustee under the Indenture. 

        "Underlying Common Stock" means the Common Stock into which the Notes are convertible or issued upon any such conversion. 

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        SECTION 2.    Shelf Registration.    (a) The Company
shall use its reasonable efforts to prepare and file or cause to be prepared and filed with the SEC, as soon as practicable but in any event by the date (the "Filing Deadline
Date") ninety (90) days after the Issue Date, a Registration Statement for an offering to be made on a delayed or continuous basis pursuant to Rule 415 of the
Securities Act (a "Shelf Registration Statement", which term shall include the Initial Shelf Registration Statement and each Subsequent Shelf
Registration Statement) registering the resale from time to time by Holders thereof of all of the Registrable Securities (the "Initial Shelf Registration
Statement"). The Initial Shelf Registration Statement shall be on Form S-3 or another appropriate form permitting registration of such Registrable Securities
for resale by such Holders in accordance with the methods of distribution elected by the Holders and set forth in the Initial Shelf Registration Statement. The Company shall use its reasonable best
efforts to cause the Initial Shelf Registration Statement to be declared effective under the Securities Act as promptly as is practicable but in any event by the date (the
"Effectiveness Deadline Date") that is one hundred and eighty (180) days after the Issue Date, and to keep the Initial Shelf Registration
Statement (or any Subsequent Shelf Registration Statement, as defined below) continuously effective under the Securities Act until the expiration of the Effectiveness Period. At the time the Initial
Shelf Registration Statement is declared effective, each Holder that became a Notice Holder on or prior to the date ten (10) Business Days prior to such time of effectiveness shall be named as
a selling securityholder in the Initial Shelf Registration Statement and the related Prospectus in such a manner as to permit such Holder to deliver such Prospectus to purchasers of Registrable
Securities in accordance with applicable law. Except for the piggyback registration rights granted to (i) Merck KGaA under its Development and License Agreement dated December 14, 1998
with the Company and (ii) Bristol-Myers Squibb Company ("BMS") under its Stockholder Agreement dated September 19, 2001 with the Company,
for each of which the Company will use its reasonable efforts to obtain a waiver or offer to each of Merck KGaA and BMS a separate shelf registration statement, none of the Company's security holders
(other than the Holders of Registrable Securities) shall have the right to include the Company's securities in the Shelf Registration Statement. 

        (b)   If
the Initial Shelf Registration Statement or any Subsequent Shelf Registration Statement ceases to be effective for any reason at any time during the Effectiveness
Period (other than because all Registrable Securities registered thereunder shall have been resold pursuant thereto or shall have otherwise ceased to be Registrable Securities), the Company shall use
its reasonable efforts to obtain the prompt withdrawal of any order suspending the effectiveness thereof, and in any event shall within thirty (30) days of such cessation of effectiveness amend
the Shelf Registration Statement in a manner reasonably expected to obtain the withdrawal of the order suspending the effectiveness thereof, or file an additional Shelf Registration Statement covering
all of the securities that as of the date of such filing are Registrable Securities (a "Subsequent Shelf Registration Statement"). If a Subsequent Shelf
Registration Statement is filed, the Company shall use its reasonable efforts to cause the Subsequent Shelf Registration Statement to become effective as promptly as is practicable after such filing
and to keep such Subsequent Shelf Registration Statement continuously effective until the end of the Effectiveness Period. 

        (c)   The
Company shall supplement and amend the Shelf Registration Statement if required by the rules, regulations or instructions applicable to the registration form used by
the Company for such Shelf Registration Statement, if required by the Securities Act or as reasonably requested by the Initial Purchasers or by the Trustee on behalf of the Holders of the Registrable
Securities covered by such Shelf Registration Statement. 

        (d)   Each
Holder of Registrable Securities agrees that if such Holder wishes to sell Registrable Securities pursuant to a Shelf Registration Statement and related Prospectus,
it will do so only in accordance with this Section 2(d) and Section 3(i). Each Holder of Registrable Securities wishing to sell Registrable Securities pursuant to a Shelf Registration
Statement and related Prospectus agrees to deliver a Notice and Questionnaire to the Company at least three (3) Business Days prior to any 

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intended
distribution of Registrable Securities under the Shelf Registration Statement. From and after the date the Initial Shelf Registration Statement is declared effective, the Company shall
(x) at the end of each calendar quarter or (y) if a Deferral Period is in effect at the end of such calendar quarter, no later than fifteen (15) Business Days after the expiration
of such Deferral Period, (i) if required by applicable law, file with the SEC a post-effective amendment to the Shelf Registration Statement or prepare and, if required by
applicable law, file a supplement to the related Prospectus or a supplement or amendment to any document incorporated therein by reference or file any other required document (including a
Subsequent Shelf Registration Statement) so that the Holder delivering a Notice and Questionnaire during such calendar quarter is named as a selling securityholder in the Shelf Registration Statement
and the related Prospectus in such a manner as to permit such Holder to deliver such Prospectus to purchasers of the Registrable Securities in accordance with applicable law and, if the Company shall
file a post-effective amendment to the Shelf Registration Statement or shall file a Subsequent Shelf Registration Statement, use its reasonable efforts to cause such
post-effective amendment or Subsequent Shelf Registration Statement to be declared effective under the Securities Act as promptly as is practicable, but in any event by the date (the
"Amendment Effectiveness Deadline Date") that is forty-five (45) days after the date such post-effective amendment is
required by this clause to be filed; (ii) provide such Holder copies of any documents filed pursuant to Section 2(d)(i); and (iii) notify such Holder as promptly as practicable
after the effectiveness under the Securities Act of any post-effective amendment filed pursuant to Section 2(d)(i); provided, that if
such Notice and Questionnaire is delivered during a Deferral Period, the Company shall so inform the Holder delivering such Notice and Questionnaire and shall take the actions set forth in clauses
(i), (ii) and (iii) above upon expiration of the Deferral Period in accordance with Section 3(i). Notwithstanding anything contained herein to the contrary, (i) the Company
shall be under no obligation to name any Holder that is not a Notice Holder as a selling securityholder in any Registration Statement or related Prospectus and (ii) the Amendment Effectiveness
Deadline Date shall be extended by up to ten (10) Business Days from the expiration of a Deferral Period (and the Company shall incur no obligation to pay Additional Interest during such
extension) if such Deferral Period shall be in effect on the Amendment Effectiveness Deadline Date. 

        (e)   The
parties hereto agree that the Holders of Registrable Securities will suffer damages, and that it would not be feasible to ascertain the extent of such damages with
precision, if (i) the Initial Shelf Registration Statement has not been filed on or prior to the Filing Deadline Date, (ii) the Initial Shelf Registration Statement has not been declared
effective under the Securities Act on or prior to the Effectiveness Deadline Date, (iii) the Company has failed to perform its obligations set forth in Section 2(d) within the time
period required therein, (iv) any post-effective amendment to a Shelf Registration Statement or any Subsequent Shelf Registration Statement filed pursuant to
Section 2(d)(i) has not become effective under the Securities Act on or prior to the Amendment Effectiveness Deadline Date, (v) the aggregate duration of Deferral Periods in any
period exceeds the number of days permitted in respect of such period pursuant to Section 3(i) hereof or (vi) the number of Deferral Periods in any period exceeds the number
permitted in respect of such period pursuant to Section 3(i) hereof (each of the events of a type described in any of the foregoing clauses (i) through (vi) are
individually referred to herein as an "Event," and the Filing Deadline Date in the case of clause (i), the Effectiveness Deadline Date in the
case of clause (ii), the date by which the Company is required to perform its obligations set forth in Section 2(d) in the case of clause (iii), the Amendment Effectiveness
Deadline Date in the case of clause (iv), the date on which the aggregate duration of Deferral Periods in any period exceeds the number of days permitted by Section 3(i) hereof in
the case of clause (v), and the date of the commencement of a Deferral Period that causes the limit on the number of Deferral Periods in any period under Section 3(i) hereof to be
exceeded in the case of clause (vi), being referred to herein as an "Event Date"). Events shall be deemed to continue until the
"Event Termination Date," which shall be the following dates with respect to the respective types of Events: the date the Initial Shelf Registration
Statement is filed in the case of an Event of the type 

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described
in clause (i), the date the Initial Shelf Registration Statement is declared effective under the Securities Act in the case of an Event of the type described in clause (ii),
the date the Company performs its obligations set forth in Section 2(d) in the case of an Event of the type described in clause (iii) the date the applicable post-effective
amendment to a Shelf Registration Statement or Subsequent Shelf Registration Statement becomes effective under the Securities Act in the case of an Event of the type described in clause (iv),
termination of the Deferral Period that caused the limit on the aggregate duration of Deferral Periods in a period set forth in Section 3(i) to be exceeded in the case of the
commencement of an Event of the type described in clause (v), and termination of the Deferral Period the commencement of which caused the number of Deferral Periods in a period permitted by
Section 3(i) to be exceeded in the case of an Event of the type described in clause (vi). 

        Accordingly,
commencing on (and including) any Event Date and ending on (but excluding) the next date on which there are no Events that have occurred and are continuing (an
"Additional Interest Accrual Period"), the Company agrees to pay, as additional interest and not as a penalty, an amount (the
"Additional Interest"), payable on the Additional Interest Payment Dates to Record Holders of Notes that are Registrable Securities and of shares of
Underlying Common Stock issued upon conversion of Notes that are Registrable Securities, as the case may be, accruing, for each portion of such Additional Interest Accrual Period beginning on and
including an Additional Interest Payment Date (or, in respect of the first time that the Additional Interest is to be paid to Holders on an Additional Interest Payment Date as a result of the
occurrence of any particular Event, from the Event Date) and ending on but excluding the first to occur of (A) the date of the end of the Additional Interest Accrual Period or (B) the
next Additional Interest Payment Date, at a rate per annum equal to one-quarter of one percent (0.25%) of the outstanding principal amount of such Notes for the first 90 days after
the occurrence of the event and one-half of one percent (0.5%)
of the outstanding principal amount of such Notes after the first 90 days or, in the case of Notes that have been converted into or exchanged for Underlying Common Stock, the Applicable
Conversion Price of such shares of Underlying Common Stock, as the case may be, in each case determined as of the Business Day immediately preceding the next Additional Interest Payment Date;  provided,
that in the case of an Additional Interest Accrual Period that is in effect solely as a result of an Event of the type described in
clause (iii) of the immediately preceding paragraph, such Additional Interest shall be paid only to the Holders that have delivered Notice and Questionnaires that caused the Company to incur
the obligations set forth in Section 2(d) the non-performance of which is the basis of such Event, provided further, that any
Additional Interest accrued with respect to any Note or portion thereof called for redemption on a redemption date or converted into Underlying Common Stock on a conversion date prior to the
Additional Interest Payment Date, shall, in any such event, be paid instead to the Holder who submitted such Note or portion thereof for redemption or conversion on the applicable redemption date or
conversion date, as the case may be, on such date (or promptly following the conversion date, in the case of conversion). In calculating the Additional Interest on any date on which no Notes are
outstanding, the Conversion Price and the Additional Interest payable with respect to shares of Common Stock which are Registrable Securities, shall be calculated as if the Notes were still
outstanding. Notwithstanding the foregoing, no Additional Interest shall accrue as to any Registrable Security from and after the earlier of (x) the date such security is no longer a
Registrable Security and (y) expiration of the Effectiveness Period. The rate of accrual of the Additional Interest with respect to any period shall not exceed the rate provided for in this
paragraph notwithstanding the occurrence of multiple concurrent Events. Following the cure of all Events requiring the payment by the Company of Additional Interest to the Holders of Registrable
Securities pursuant to this Section, the accrual of Additional Interest will cease (without in any way limiting the effect of any subsequent Event requiring the payment of Additional Interest by the
Company). 

        The
Trustee shall be entitled, on behalf of Holders of Notes or Underlying Common Stock, to seek any available remedy for the enforcement of this Agreement, including for the payment of
any Additional Interest. Notwithstanding the foregoing, the parties agree that the sole damages payable for 

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a
violation of the terms of this Agreement with respect to which Additional Interest is expressly provided shall be such Additional Interest. Nothing shall preclude a Notice Holder or Holder of
Registrable Securities from pursuing or obtaining specific performance or other equitable relief with respect to this Agreement. 

        All
of the Company's obligations set forth in this Section 2(e) that are outstanding with respect to any Registrable Security at the time such security ceases to be a Registrable
Security shall survive until such time as all such obligations with respect to such security have been satisfied in full (notwithstanding termination of this Agreement pursuant to
Section 8(k)). 

        The
parties hereto agree that the Additional Interest provided for in this Section 2(e) constitute a reasonable estimate of the damages that may be incurred by Holders of
Registrable Securities by reason of the failure of the Shelf Registration Statement to be filed or declared effective or available for effecting resales of Registrable Securities in accordance with
the provisions hereof. 

        SECTION 3.    Registration Procedures.    In connection with
the registration obligations of the Company under Section 2 hereof, the Company shall: 

        (a)   Prepare
and file with the SEC a Registration Statement or Registration Statements on any appropriate form under the Securities Act available for the sale of the
Registrable Securities by the Holders thereof in accordance with the intended method or methods of distribution thereof, and use its reasonable efforts to cause each such Registration Statement to
become effective and remain effective as provided herein; provided, that before filing any Registration Statement or Prospectus or any amendments or
supplements thereto with the SEC, furnish to the Initial Purchasers and the Special Counsel copies of all such documents proposed to be filed and use its reasonable efforts to reflect in each such
document when so filed with the SEC such comments as the Special Counsel reasonably shall propose within five (5) Business Days of the delivery of such copies to the Initial Purchasers and the
Special Counsel. 

        (b)   Prepare
and file with the SEC such amendments and post-effective amendments to each Registration Statement as may be necessary to keep such Registration
Statement continuously effective for the applicable period specified in Section 2(a); cause the related Prospectus to be supplemented by any required prospectus supplement, and as so
supplemented to be filed pursuant to Rule 424 (or any similar provisions then in force) under the Securities Act; and use its reasonable efforts to comply with the provisions of the Securities
Act applicable to it with respect to the disposition of all securities covered by such Registration Statement during the Effectiveness Period in accordance with the intended methods of disposition by
the sellers thereof set forth in such Registration Statement as so amended or such Prospectus as so supplemented. 

        (c)   As
promptly as practicable give notice to the Notice Holders, the Initial Purchasers and the Special Counsel (i) when any Prospectus, prospectus supplement,
Registration Statement or post-effective amendment to a Registration Statement has been filed with the SEC and, with respect to a Registration Statement or any post-effective
amendment, when the same has been declared effective, (ii) of any request, following the effectiveness of the Initial Shelf Registration Statement under the Securities Act, by the SEC or any
other federal or state governmental authority for amendments or supplements to any Registration Statement or related Prospectus or for additional information, (iii) of the issuance by the SEC
or any other federal or state governmental authority of any stop order suspending the effectiveness of any Registration Statement or the initiation or threatening of any proceedings for that purpose,
(iv) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any
jurisdiction or the initiation or threatening of any proceeding for such purpose, (v) of the occurrence of (but not the nature of or details concerning) a Material Event and (vi) of the
determination by the Company that a post-effective amendment to a Registration Statement will be filed with the SEC, which notice may, at the discretion of the Company (or as required
pursuant to 

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Section 3
(i)), state that it constitutes a Deferral Notice, in which event the provisions of Section 3(i) shall apply. 

        (d)   Use
reasonable efforts to obtain the withdrawal of any order suspending the effectiveness of a Registration Statement or the lifting of any suspension of the
qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction in which they have been qualified for sale, in either case at the earliest possible
moment, and provide prompt notice to each Notice Holder and the Initial Purchasers of the withdrawal of any such order. 

        (e)   If
reasonably requested by an Initial Purchaser or any Notice Holder, as promptly as practicable incorporate in a Prospectus supplement or post-effective
amendment to a Registration Statement such information as the Initial Purchaser, the Special Counsel or such Notice Holder shall, on the basis of a written opinion of nationally-recognized counsel
experienced in such matters, determine to be required to be included therein by applicable law and make any required filings of such Prospectus supplement or such post-effective amendment. 

        (f)    As
promptly as practicable furnish to each Notice Holder, the Special Counsel and the Initial Purchasers, without charge, at least one (1) conformed copy of the
Registration Statement and any amendment thereto, including financial statements but excluding schedules, all documents incorporated or deemed to be incorporated therein by reference and all exhibits
(unless requested in writing to the Company by such Notice Holder, Special Counsel, counsel or Initial Purchaser). 

        (g)   During
the Effectiveness Period, deliver to each Notice Holder, the Special Counsel and the Initial Purchasers, in connection with any sale of Registrable Securities
pursuant to a Registration Statement, without charge, as many copies of the Prospectus or Prospectuses relating to such Registrable Securities (including each preliminary prospectus) and any amendment
or supplement thereto as such Notice Holder may reasonably request; and the Company hereby consents (except during such periods that a Deferral Notice is outstanding and has not been revoked) to the
use of such Prospectus or each amendment or supplement thereto by each Notice Holder, in connection with any offering and sale of the Registrable Securities covered by such Prospectus or any amendment
or supplement thereto in the manner set forth therein. 

        (h)   Prior
to any public offering of the Registrable Securities pursuant to the Shelf Registration Statement, register or qualify or cooperate with the Notice Holders in
connection with the registration or qualification (or exemption from such registration or qualification) of such Registrable Securities for offer and sale under the securities or Blue Sky laws of such
jurisdictions within the United States as any Notice Holder reasonably requests in writing (which request may be included in the Notice and Questionnaire); prior to any public offering of the
Registrable Securities pursuant to the Shelf Registration Statement, keep each such registration or qualification (or exemption therefrom) effective during the Effectiveness Period in connection with
such Notice Holder's offer and sale of Registrable Securities pursuant to such registration or qualification (or exemption therefrom) and do any and all other acts or things reasonably necessary or
advisable to enable the disposition in such jurisdictions of such Registrable Securities in the manner set forth in the relevant Registration Statement and the related Prospectus;  provided, that the
Company will not be required to (i) qualify as a foreign corporation or as a dealer in securities in any jurisdiction where it
would not otherwise be required to qualify but for this Agreement or (ii) take any action that would subject it to general service of process in suits or to taxation in any such jurisdiction
where it is not then so subject. 

        (i)    Upon
(A) the issuance by the SEC of a stop order suspending the effectiveness of the Shelf Registration Statement or the initiation of proceedings with respect to
the Shelf Registration Statement under Section 8(d) or 8(e) of the Securities Act, (B) the occurrence of any event or the existence of any fact (a "Material
Event") as a result of which any Registration Statement shall contain any untrue statement of a material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein not misleading, or any Prospectus shall contain any untrue 

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statement
of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made,
not misleading, or (C) the occurrence or existence of any pending corporate development that, in the reasonable discretion of the Company, makes it appropriate to suspend the availability of
the Shelf Registration Statement and the related Prospectus, (i) in the case of clause (B) above, subject to the next sentence, as promptly as practicable prepare and file, if necessary
pursuant to applicable law, a post-effective amendment to such Registration Statement or a supplement to the related Prospectus or any document incorporated therein by reference or file
any other required document that would be incorporated by reference into such Registration Statement and Prospectus so that such Registration Statement does not contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading (except for any such untrue statement or omission made in
reliance on and in conformity with information relating to any Notice Holder furnished to the Company in writing by such Notice Holder expressly for use therein), and such Prospectus does not contain
any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they
were made, not misleading (except for any such untrue statement or omission made in reliance on and in conformity with information relating to any Notice Holder furnished to the Company in writing by
such Notice Holder expressly for use therein), as thereafter delivered to the purchasers of the Registrable Securities being sold thereunder, and, in the case of a post-effective amendment
to a Registration Statement, subject to the next sentence, use its reasonable efforts to cause it to be declared effective as promptly as is practicable, and (ii) give notice to the Notice
Holders, and the Special Counsel, if any, that the availability of the Shelf Registration Statement is suspended (a "Deferral Notice") and, upon receipt
of any Deferral Notice, each Notice Holder agrees not to sell any Registrable Securities pursuant to the Registration Statement until such Notice Holder's receipt of copies of the supplemented or
amended Prospectus provided for in clause (i) above, or until it is advised in writing by the Company that the Prospectus may be used, and has received copies of any additional or supplemental
filings that are incorporated or deemed incorporated by reference in such Prospectus. The Company will use all reasonable efforts to ensure that the use of the Prospectus may be resumed (x) in
the case of clause (A) above, as promptly as is practicable, (y) in the case of clause (B) above, as soon as, in the sole judgment of the Company, public disclosure of such
Material Event would not be prejudicial to or contrary to the interests of the Company or, if necessary to avoid unreasonable burden or expense, as soon as practicable thereafter and (z) in the
case of clause (C) above, as soon as, in the discretion of the Company, such suspension is no longer appropriate. The Company shall be entitled to exercise its right under this
Section 3(i) to suspend the availability of the Shelf Registration Statement or any Prospectus, without incurring or accruing any obligation to pay Additional Interest pursuant to
Section 2(e), no more than one (1) time in any three month period or three (3) times in any twelve month period, and any such period during which the availability of the
Registration Statement and any Prospectus is suspended (the "Deferral Period") shall, without incurring any obligation to pay Additional Interest
pursuant to Section 2(e), not exceed 30 days; provided, that in the case of a Material Event relating to an acquisition or a probable
acquisition or financing, recapitalization, business combination or other similar transaction, the Company may, without incurring any obligation to pay Additional Interest pursuant to
Section 2(e), deliver to Notice Holders a second notice to the effect set forth above, which
shall have the effect of extending the Deferral Period by up to an additional 30 days, or such shorter period of time as is specified in such second notice,  provided, that the aggregate duration of
any Deferral Periods shall not, without incurring any obligation to pay Additional Interest pursuant to
Section 2(e), exceed 30 days in any three month period (or 60 days in any three month period in the event of a Material Event pursuant to which the Company has delivered a second
notice as required above) or 90 days in any twelve (12) month period. 

10

 

        (j)    If
requested in writing in connection with a disposition of Registrable Securities pursuant to a Registration Statement, make reasonably available for inspection during
normal business hours by a representative for the Notice Holders of such Registrable Securities, and any managing underwriter, broker-dealers, attorneys and accountants retained by such Notice
Holders, all relevant financial and other records and pertinent corporate documents and properties of the Company and its subsidiaries, and cause the appropriate officers, directors and employees of
the Company and its subsidiaries to make reasonably available for inspection during normal business hours on reasonable notice all relevant information reasonably requested by such representative for
the Notice Holders, or any such managing underwriter, broker-dealers, attorneys or accountants in connection with such disposition, in each case as is customary for similar
"due diligence" examinations; provided, however, that
such persons shall first agree in writing with the Company that any information that is reasonably and in good faith designated by the Company in writing as confidential at the time of delivery of
such information shall be kept confidential by such persons and shall be used solely for the purposes of exercising rights under this Agreement, unless (i) disclosure of such information is
required by court or administrative order or is necessary to respond to inquiries of regulatory authorities, (ii) disclosure of such information is required by law (including any disclosure
requirements pursuant to federal securities laws in connection with the filing of any Registration Statement or the use of any Prospectus referred to in this Agreement), (iii) such information
becomes generally available to the public other than as a result of a disclosure or failure to safeguard by any such person or (iv) such information becomes available to any such person from a
source other than the Company and such source is not bound by a confidentiality agreement, and provided, that the foregoing inspection and information
gathering shall, to the greatest extent possible, be coordinated on behalf of all the Notice Holders and the other parties entitled thereto by the counsel referred to in Section 5 and  provided further, that the Company shall not be required to disclose any information subject to the attorney-client or attorney work product privilege
if and to the extent such disclosure would constitute a waiver of such privilege. 

        (k)   Use
all reasonable efforts to comply with all applicable rules and regulations of the SEC and make generally available to its securityholders earning statements (which
need not be audited) satisfying the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder (or any similar rule promulgated under the Securities Act) no later than
45 days after the end of any 3-month period (or 90 days after the end of any 12-month period if such period is a fiscal year) commencing on the first day of the
first fiscal quarter of the Company commencing after the effective date of a Registration Statement, which statements shall cover said periods. 

        (l)    Cooperate
with each Notice Holder to facilitate the timely preparation and delivery of certificates representing Registrable Securities sold or to be sold pursuant to a
Registration Statement, which certificates shall not bear any restrictive legends, and cause such Registrable Securities to be in such denominations as are permitted by the Indenture and registered in
such names as such Notice Holder may request in writing at least two (2) Business Days prior to any sale of such Registrable Securities. 

        (m)  Provide
a CUSIP number for all Registrable Securities covered by each Registration Statement not later than the effective date of such Registration Statement and provide
the Trustee and the transfer agent for the Common Stock with printed certificates for the Registrable Securities that are in a form eligible for deposit with The Depository Trust Company. 

        (n)   Cooperate
and assist in any filings required to be made with the National Association of Securities Dealers, Inc. 

11

   
        (o)   Upon (i) the filing of the Initial Shelf Registration Statement and (ii) the effectiveness of the Initial Shelf Registration Statement and any Subsequent
Shelf Registration Statement, announce the same, in each case by release to Reuters Economic Services and Bloomberg Business News. 

        SECTION 4.    Holder's Obligations.    Each Holder agrees, by acquisition of the
Registrable Securities, that no Holder of Registrable Securities shall be entitled to sell any of such Registrable Securities pursuant to a Registration Statement or to receive a Prospectus relating
thereto, unless such Holder has furnished the Company with a Notice and Questionnaire as required pursuant to Section 2(d) hereof (including the information required to be included in such
Notice and Questionnaire) and the information set forth in the next sentence. Each Notice Holder agrees promptly to furnish to the Company all information required to be disclosed in order to make the
information previously furnished to the Company by such Notice Holder not misleading and any other information regarding such Notice Holder and the distribution of such Registrable Securities as the
Company may from time to time reasonably request. Any sale of any Registrable Securities by any Holder shall constitute a representation and warranty by such Holder that the information relating to
such Holder and its plan of distribution is as set forth in the Prospectus delivered by such Holder in connection with such disposition, that such Prospectus does not as of the time of such sale
contain any untrue statement of a material fact relating to or provided by such Holder or its plan of distribution and that such Prospectus does not as of the time of such sale omit to state any
material fact relating to or provided by such Holder or its plan of distribution necessary to make the statements in such Prospectus, in the light of the circumstances under which they were made, not
misleading. 

        SECTION 5.    Registration Expenses.    The Company shall bear all fees and expenses
incurred in connection with the performance by the Company of its obligations under Sections 2 and 3 of this Agreement whether or not any Registration Statement is declared effective. Such fees and
expenses shall include, without limitation, (i) all registration and filing fees (including, without limitation, fees and expenses (x) with respect to filings required to be made with
the National Association of Securities Dealers, Inc. and (y) of compliance with federal and state securities or Blue Sky laws (including, without limitation, reasonable fees and
disbursements of the Special Counsel in connection with Blue Sky qualifications of the Registrable Securities under the laws of such jurisdictions as the Notice Holders of a majority of the
Registrable Securities being sold pursuant to a Registration Statement may designate), (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable
Securities in a form eligible for deposit with The Depository Trust Company, (iii) duplication expenses relating to copies of any Registration Statement or Prospectus delivered to any Holders
hereunder, (iv) fees and disbursements of counsel for the Company and the Special Counsel in connection with the Shelf Registration Statement (provided that the Company shall not be liable for
the fees and expenses of more than one separate firm for all parties participating in any transaction hereunder), (v) reasonable fees and disbursements of the Trustee and its counsel and of the
registrar and transfer agent for the Common Stock and (vi) any Securities Act liability insurance obtained by the Company in its sole discretion. In addition, the Company shall pay the internal
expenses of the Company (including, without limitation, all salaries and expenses of officers and employees performing legal or accounting duties), the expense of any annual audit, the fees and
expenses incurred in connection with the listing
by the Company of the Registrable Securities on any securities exchange on which similar securities of the Company are then listed and the fees and expenses of any person, including special experts,
retained by the Company. Notwithstanding the provisions of this Section 5, each seller of Registrable Securities shall pay selling expenses and all registration expenses to the extent required
by applicable law. 

        SECTION 6.    Indemnification.    

        (a)   Indemnification by the Company.    The Company shall indemnify and hold harmless each Notice Holder and each
person, if any, who controls any Notice Holder (within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act) from and against any losses, 

12

 

liabilities,
claims, damages and expenses (including, without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim)
(collectively, "Losses"), arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in any Registration
Statement or Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or based upon any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not misleading, provided, however, that the Company shall not be liable in any
such case to the extent that any such Losses arise out of or are based upon an untrue statement or alleged untrue statement contained in or omission or alleged omission from any of such documents in
reliance upon and conformity with any of the information relating to the Holders furnished to the Company in writing by a Holder expressly for use therein; provided
further, that the indemnification contained in this paragraph shall not inure to the benefit of any Holder of Registrable Securities (or to the benefit of any person
controlling such Holder) on account of any such Losses arising out of or based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any preliminary prospectus
provided in each case the Company has performed its obligations under Section 3(a) hereof if either (A) (i) such Holder failed to send or deliver a copy of the Prospectus with or prior
to the delivery of written confirmation of the sale by such Holder to the person asserting the claim from which such Losses arise and (ii) the Prospectus would have corrected such untrue
statement or alleged untrue statement or such omission or alleged omission, or (B) (x) such untrue statement or alleged untrue statement, omission or alleged omission is corrected in an
amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder
thereafter fails to deliver such Prospectus as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of a Registrable Security to the person asserting the claim
from which such Losses arise. 

        (b)   Indemnification by Holders of Registrable Securities.    Each Holder agrees severally and not jointly to
indemnify and hold harmless the Company and its respective directors and officers, and each person, if any, who controls the Company (within the meaning of either Section 15 of the Securities
Act or Section 20 of the Exchange Act) or any other Holder, from and against all Losses arising out of or based upon any untrue statement or alleged untrue statement of a material fact
contained in any Registration Statement or Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or based upon any omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, to the extent, but only to the extent, that such untrue statement or alleged
untrue statement or omission or alleged omission was made in reliance upon and in conformity with information furnished to the Company by such Holder expressly for use in such Registration Statement
or Prospectus or amendment or supplement thereto. In no event shall the liability of any selling Holder of Registrable Securities hereunder be greater in amount than the dollar amount of the proceeds
received by such Holder upon the sale of the Registrable Securities pursuant to the Registration Statement giving rise to such indemnification obligation. 

        (c)   Conduct of Indemnification Proceedings.    In case any proceeding (including any governmental investigation)
shall be instituted involving any person in respect of which indemnity may be sought pursuant to either of the two preceding paragraphs, such person (the "indemnified
party") shall promptly notify the person against whom such indemnity may be sought (the "indemnifying party") in writing and the
indemnifying party, upon request of the indemnified party, shall retain counsel reasonably satisfactory to the indemnified party to represent the indemnified party and any others the indemnifying
party may designate in such proceeding and shall pay the reasonable fees and disbursements of such counsel related to such proceeding. In any such proceeding, any indemnified party shall have the
right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such indemnified party unless (i) the indemnifying party and the indemnified party shall
have mutually agreed to the retention of such counsel or (ii) the named parties to any such 

13

 

proceeding
(including any impleaded parties) include both the indemnifying party and the indemnified party and representation of both parties by the same counsel would be inappropriate due to actual
or potential differing interests between them. It is understood that the indemnifying party shall not, in respect of the legal expenses of any indemnified party in connection with any proceeding or
related proceedings in the same jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to any local counsel) for all indemnified parties, and that all such fees
and expenses shall be reimbursed as they are incurred. Such separate firm shall be designated in writing by, in the case of parties indemnified pursuant to Section 6(a), the Holders of a
majority (with Holders of Notes deemed to be the Holders, for purposes of determining such majority, of the number of shares of Underlying Common Stock into which such Notes are or would be
convertible or exchangeable as of the date on which such designation is made) of the Registrable Securities covered by the Registration Statement held by Holders that are indemnified parties pursuant
to Section 6(a) and, in the case of parties indemnified pursuant to Section 6(b), the Company. The indemnifying party shall not be liable for any settlement of any proceeding effected
without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any
loss or liability by reason of such settlement or judgment. No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened
proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an
unconditional release of such indemnified party from all liability on claims that are the subject matter of such proceeding. 

        (d)   Contribution.    To the extent that the indemnification provided for in this Section 6 is unavailable to
an indemnified party under Section 6(a) or 6(b) hereof in respect of any Losses or is insufficient to hold such indemnified party harmless, then each applicable indemnifying party, in lieu of
indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses (i) in such proportion as is appropriate to reflect the
relative benefits received by the indemnifying party or parties on the one hand and the indemnified party or parties on the other hand or (ii) if the allocation provided by clause (i)
above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the
indemnifying party or parties on the one hand and of the indemnified party or parties on the other hand in connection with the statements or omissions that resulted in such Losses, as well as any
other relevant equitable considerations. Benefits received by the Company shall be deemed to be equal to the total net proceeds from the initial placement pursuant to the Purchase Agreement (before
deducting expenses) of the Registrable Securities to which such Losses relate. Benefits received by any Holder shall be deemed to be equal to the value of receiving Registrable Securities that are
registered under the Securities Act. The relative fault of the Holders on the one hand and the Company on the other hand shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Holders or by the Company, and the parties' relative
intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Holders' respective obligations to contribute pursuant to this Section 6(d) are
several in proportion to the respective number of Registrable Securities they have sold pursuant to a Registration Statement, and not joint. 

        The
parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 6(d) were determined by pro
rata allocation or by any other method or allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph. The amount
paid or payable by an indemnified party as a result of the Losses referred to in the immediately preceding paragraph shall be deemed to include, subject to the limitations set forth above, any legal
or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding this Section 6(d), an indemnifying 

14

 

party
that is a selling Holder of Registrable Securities shall not be required to contribute any amount in excess of the amount by which the total price at which the Registrable Securities sold by
such indemnifying party and distributed to the public were offered to the public exceeds the amount of any damages that such indemnifying party has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. 

        (e)   The
indemnity, contribution and expense reimbursement obligations of the parties hereunder shall be in addition to any liability any indemnified party may otherwise have
hereunder, under the Purchase Agreement or otherwise. 

        (f)    The
indemnity and contribution provisions contained in this Section 6 shall remain operative and in full force and effect regardless of (i) any termination
of this Agreement, (ii) any investigation made by or on behalf of any Holder or any person controlling any Holder, or the Company, or the Company's officers or directors or any person
controlling the Company and (iii) the sale of any Registrable Securities by any Holder. 

        SECTION 7.    Information Requirements.    (a)    The Company covenants that,
if at any time before the end of the Effectiveness Period the Company is not subject to the reporting requirements of the Exchange Act, it will cooperate with any Holder of Registrable Securities and
take such further reasonable action as any Holder of Registrable Securities may reasonably request in writing (including, without limitation, making such reasonable representations as any such Holder
may reasonably request), all to the extent required from time to time to enable such Holder to sell Registrable Securities without registration under the Securities Act within the limitation of the
exemptions provided by Rule 144 and Rule 144A under the Securities Act and customarily taken in connection with sales pursuant to such exemptions. Upon the written request of any Holder
of Registrable Securities, the Company shall deliver to such Holder a written statement as to whether it has complied with such filing requirements, unless such a statement has been included in the
Company's most recent report filed pursuant to Section 13 or Section 15(d) of Exchange Act. Notwithstanding the foregoing, nothing in this Section 7 shall be deemed to require the
Company to register any of its securities (other than the Common Stock) under any section of the Exchange Act. 

        (b)   The
Company shall file the reports required to be filed by it under the Exchange Act and shall comply with all other requirements set forth in the instructions to
Form S-3 in order to allow the Company to be eligible to file registration statements on Form S-3. 

        SECTION 8.    Miscellaneous.    

        (a)   No Conflicting Agreements.    Except for the piggyback registration rights granted to (i) Merck KGaA
under its Development and License Agreement dated December 14, 1998 with the Company and (ii) BMS under its Stockholder Agreement dated September 19, 2001 with the Company, for
each of which the Company will use its reasonable efforts to obtain a waiver or offer to each of Merck KGaA and BMS a separate shelf registration statement: 

	(i)
	The
Company is not, as of the date hereof, a party to, nor shall it, on or after the date of this Agreement, enter into, any agreement with respect to its securities
that conflicts with the rights granted to the Holders of Registrable Securities in this Agreement.

	(ii)
	The
Company represents and warrants that the rights granted to the Holders of Registrable Securities hereunder do not in any way conflict with the rights granted to the
holders of the Company's securities under any other agreements. 

        (b)   Amendments and Waivers.    The provisions of this Agreement, including the provisions of this sentence, may not
be amended, modified or supplemented, and waivers or consents to departures from 

15

 

the
provisions hereof may not be given, unless the Company has obtained the written consent of Holders of a majority of the then outstanding Underlying Common Stock constituting Registrable Securities
(with Holders of Notes deemed to be the Holders, for purposes of this Section, of the number of outstanding shares of Underlying Common Stock into which such Notes are or would be convertible or
exchangeable as of the date on which such consent is requested). Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that relates
exclusively to the rights of Holders of Registrable Securities whose securities are being sold pursuant to a Registration Statement and that does not directly or indirectly affect the rights of other
Holders of Registrable Securities may be given by Holders of at least a majority of the Registrable Securities being sold by such Holders pursuant to such Registration Statement;  provided, that the
provisions of this sentence may not be amended, modified, or supplemented except in accordance with the provisions of the immediately
preceding sentence. Notwithstanding the foregoing sentence, (i) this Agreement may be amended by written agreement signed by the Company and the Initial Purchasers, without the consent of the
Holders of Registrable Securities, to cure any ambiguity or to correct or supplement any provision contained herein that may be defective or inconsistent with any other provision contained herein, or
to make such other provisions in regard to matters or questions arising under this Agreement that shall not adversely affect the interests of the Holders of Registrable Securities. Each Holder of
Registrable Securities outstanding at the time of any such amendment, modification, supplement, waiver or consent or thereafter shall be bound by any such amendment, modification, supplement, waiver
or consent effected pursuant to this Section 8(b), whether or not any notice, writing or marking indicating such amendment, modification, supplement, waiver or consent appears on the
Registrable Securities or is delivered to such Holder. 

        (c)   Notices.    All notices and other communications provided for or permitted hereunder shall be made in writing
by hand delivery, by telecopier, by courier guaranteeing overnight delivery or by first-class mail, return receipt requested, and shall be deemed given (i) when made, if made by hand delivery,
(ii) upon confirmation, if made by telecopier, (iii) one (1) Business Day after being deposited with such courier, if made by overnight courier or (iv) on the date
indicated on the notice of receipt, if made by first-class mail, to the parties as follows: 

	(w)
	if
to a Holder of Registrable Securities, at the most current address given by such Holder to the Company in a Notice and Questionnaire or any amendment thereto;

	(x)
	if
to the Company, to:

ImClone
Systems Incorporated

180 Varick Street, 7th Floor

New York, NY 10014

Attention: General Counsel

Telecopy No.: (212) 645-2054 

and

Davis
Polk & Wardwell

450 Lexington Avenue

New York, NY 10017

Attention: Richard A. Drucker, Esq.

Telecopy No.: (212) 450-4800

	(y)
	if
to the Initial Purchasers, to: 

Morgan
Stanley & Co. Incorporated

1585 Broadway

New York, New York

Attention: Equity Capital Markets

Telecopy No.: (212) 761-0538

or
to such other address as such person may have furnished to the other persons identified in this Section 8(c) in writing in accordance herewith. 

16

 

        (d)   Approval of Holders.    Whenever the consent or approval of Holders of a specified percentage of Registrable
Securities is required hereunder, Registrable Securities held by the Company or its affiliates (as such term is defined in Rule 405 under the Securities Act) (other than the Initial Purchasers
or subsequent Holders of Registrable Securities if such subsequent Holders are deemed to be such affiliates solely by reason of their holdings of such Registrable Securities) shall not be counted in
determining whether such consent or approval was given by the Holders of such required percentage. 

        (e)   Successors and Assigns.    Any person who purchases any Registrable Securities from the Initial Purchasers
shall be deemed, for purposes of this Agreement, to be an assignee of the Initial Purchasers. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the
parties and shall inure to the benefit of and be binding upon each Holder of any Registrable Securities, provided that nothing herein shall be deemed to
permit any assignment, transfer or other disposition of Registrable Securities in violation of the terms of the Indenture. If any transferee of any Holder shall acquire Registrable Securities, in any
manner, whether by operation of law or otherwise, such Registrable Securities shall be held subject to all of the terms of this Agreement, and by taking and holding such Registrable Securities, such
person shall be conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of this Agreement and such person shall be entitled to receive the benefits hereof. 

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

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

        (h)   Governing Law.    THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF.

        (i)    Severability.    If any term provision, covenant or restriction of this Agreement is held to be invalid,
illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or
invalidated thereby, and the parties hereto shall use their best efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term,
provision, covenant or restriction, it being intended that all of the rights and privileges of the parties shall be enforceable to the fullest extent permitted by law. 

        (j)    Entire Agreement.    This Agreement is intended by the parties as a final expression of their agreement and is
intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein and the registration rights granted by the
Company with respect to the Registrable Securities. Except as provided in the Purchase Agreement, there are no restrictions, promises, warranties or undertakings, other than those set forth or
referred to herein, with respect to the registration rights granted by the Company with respect to the Registrable Securities. This Agreement supersedes all prior agreements and undertakings among the
parties with respect to such registration rights. No party hereto shall have any rights, duties or obligations other than those specifically set forth in this Agreement. In no event will such methods
of distribution take the form of an underwritten offering of the Registrable Securities without the prior agreement of the Company. 

        (k)   Termination.    This Agreement and the obligations of the parties hereunder shall terminate upon the end of the
Effectiveness Period, except for any liabilities or obligations under Section 4, 5 or 6 hereof and the obligations to make payments of and provide for Additional Interest under
Section 2(e) hereof to the extent such damages accrue prior to the end of the Effectiveness Period, each of which shall remain in effect in accordance with its terms. 

17

 

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

	

 	
 	

IMCLONE SYSTEMS INCORPORATED
	
	 	 	 	 
	

 	
 	

By	
 	

 
	 	 	 	 	/s/  MICHAEL J. HOWESTON      
 Name: Michael J. Howeston

Title: Acting Chief Financial Officer,

Vice President, Finance and Business Development, Secretary
	

	 	 	 	 

Confirmed and accepted as of

the date first above written: 

MORGAN
STANLEY & CO. INCORPORATED

UBS SECURITIES LLC 

By:    Morgan
Stanley & Co. Incorporated 

	

By	
 	

 	
 	

 
	 	 	/s/  WILLIAM L. BLAIS      
	 	 
	 	 	Name: William L. Blais

Title: Managing Director	 	 

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Exhibit 4.2  

 

IMCLONE SYSTEMS INCORPORATED  

 and  

 THE BANK OF NEW YORK  

 as Trustee  

 INDENTURE  

 Dated as of

May 7, 2004  

 13/8% Convertible Notes due 2024  

 

  

 

        Reconciliation and Tie Between the Trust Indenture Act of 1939 and Indenture, dated as of May 7, 2004, between ImClone Systems Incorporated
and The Bank of New York as Trustee. 

	TRUST INDENTURE ACT SECTION
 
	 	INDENTURE SECTION
 

	Section 310	(a)(1)	 	7.9
	 	(a)(2)	 	7.9
	 	(a)(3)	 	N.A.
	 	(a)(4)	 	N.A.
	 	(a)(5)	 	7.9
	 	(b)	 	7.8; 7.9; 7.10; 7.11
	Section 311	(a)	 	7.13
	 	(b)	 	7.13
	 	(b)(2)	 	7.13
	Section 312	(a)	 	5.1; 5.2(a)
	 	(b)	 	5.2(b)
	 	(c)	 	5.2(c)
	Section 313	(a)	 	5.3(a)
	 	(b)	 	5.3(a)
	 	(c)	 	5.3(a)
	 	(d)	 	5.3(b)
	Section 314	(a)	 	5.4
	 	(b)	 	N.A.
	 	(c)(1)	 	15.5
	 	(c)(2)	 	15.5
	 	(c)(3)	 	N.A.
	 	(d)	 	N.A.
	 	(e)	 	15.5
	Section 315	(a)	 	7.1
	 	(b)	 	6.8
	 	(c)	 	7.1
	 	(d)	 	7.1
	 	(d)(1)	 	7.1(a)
	 	(d)(2)	 	7.1(b)
	 	(d)(3)	 	7.1(c)
	 	(e)	 	6.9
	Section 316	(a)	 	6.7
	 	(a)(1)(A)	 	6.7
	 	(a)(1)(B)	 	6.7
	 	(a)(2)	 	NA.
	 	(b)	 	6.4
	Section 317	(a)(1)	 	6.5
	 	(a)(2)	 	6.5
	 	(b)	 	4.4
	Section 318	(a)	 	15.7

	*
	Note:
This reconciliation and tie shall not, for any purpose, be deemed to be a part of the Indenture.

	**
	Note:
N.A. means Not Applicable. 

i

  

 
 

TABLE OF CONTENTS    
    

	 
	 	 
	 	Page

	TABLE OF CONTENTS	 	ii
	

ARTICLE ONE DEFINITIONS	
 	

1
	 	

Section 1.1.	
 	

Definitions	
 	

1
	

ARTICLE TWO ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF NOTES	
 	

7
	 	

Section 2.1.	
 	

Designation Amount and Issue of Notes	
 	

7
	 	Section 2.2.	 	Form of Notes	 	7
	 	Section 2.3.	 	Date and Denomination of Notes; Payments of Interest	 	7
	 	Section 2.4.	 	Execution of Notes	 	8
	 	Section 2.5.	 	Exchange and Registration of Transfer of Notes; Restrictions on Transfer; Depositary	 	9
	 	Section 2.6.	 	Mutilated, Destroyed, Lost or Stolen Notes	 	14
	 	Section 2.7.	 	Temporary Notes	 	14
	 	Section 2.8.	 	Cancellation of Notes Paid, Etc	 	15
	 	Section 2.9.	 	CUSIP Numbers	 	15
	 	Section 2.10	 	Issuance of Additional Notes	 	15
	

ARTICLE THREE REDEMPTION AND REPURCHASE OF NOTES	
 	

16
	 	

Section 3.1.	
 	

Optional Redemption by the Company	
 	

16
	 	Section 3.2.	 	Notice of Redemptions; Selection of Notes	 	16
	 	Section 3.3.	 	Payment of Notes Called for Redemption	 	17
	 	Section 3.4.	 	Conversion Arrangement on Call for Redemption	 	19
	 	Section 3.5.	 	Redemption at Option of Holders	 	19
	 	Section 3.6.	 	Repurchase of Notes by the Company at Option of the Holder	 	22
	 	Section 3.7.	 	Company Repurchase Notice	 	23
	 	Section 3.8.	 	Effect of Repurchase Notice	 	23
	 	Section 3.9.	 	Deposit of Repurchase Price	 	24
	 	Section 3.10.	 	Notes Repurchased in Part	 	24
	 	Section 3.11.	 	Repayment to the Company	 	24
	

ARTICLE FOUR PARTICULAR COVENANTS OF THE COMPANY	
 	

25
	 	

Section 4.1.	
 	

Payment of Principal and Interest	
 	

25
	 	Section 4.2.	 	Maintenance of Office or Agency	 	25
	 	Section 4.3.	 	Appointments to Fill Vacancies in Trustee's Office	 	25
	 	Section 4.4.	 	Provisions as to Paying Agent	 	25
	 	Section 4.5.	 	Existence	 	27
	 	Section 4.6.	 	Maintenance of Properties	 	27
	 	Section 4.7.	 	Payment of Taxes and Other Claims	 	27
	 	Section 4.8.	 	Rule 144A Information Requirement	 	27
	 	Section 4.9.	 	Stay, Extension and Usury Laws	 	28
	 	Section 4.10.	 	Compliance Certificate	 	28
	 	 	 	 	 

ii

 

	 	Section 4.11.	 	Additional Interest Notice	 	28
	

ARTICLE FIVE NOTEHOLDERS' LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE	
 	

28
	 	

Section 5.1.	
 	

Noteholders' Lists	
 	

28
	 	Section 5.2.	 	Preservation and Disclosure of Lists	 	29
	 	Section 5.3.	 	Reports by Trustee	 	29
	 	Section 5.4.	 	Reports by Company	 	29
	

ARTICLE SIX REMEDIES OF THE TRUSTEE AND NOTEHOLDERS ON AN EVENT OF DEFAULT	
 	

30
	 	

Section 6.1.	
 	

Events of Default	
 	

30
	 	Section 6.2.	 	Payments of Notes on Default; Suit Therefor	 	31
	 	Section 6.3.	 	Application of Monies Collected by Trustee	 	32
	 	Section 6.4.	 	Proceedings by Noteholder	 	33
	 	Section 6.5.	 	Proceedings by Trustee	 	33
	 	Section 6.6.	 	Remedies Cumulative and Continuing	 	34
	 	Section 6.7.	 	Direction of Proceedings and Waiver of Defaults by Majority of Noteholders	 	34
	 	Section 6.8.	 	Notice of Defaults	 	34
	 	Section 6.9.	 	Undertaking to Pay Costs	 	34
	

ARTICLE SEVEN THE TRUSTEE	
 	

35
	 	

Section 7.1.	
 	

Duties and Responsibilities of Trustee	
 	

35
	 	Section 7.2.	 	Reliance on Documents, Opinions, Etc	 	36
	 	Section 7.3.	 	No Responsibility for Recitals, Etc	 	37
	 	Section 7.4.	 	Trustee, Paying Agents, Conversion Agents or Registrar May Own Notes	 	37
	 	Section 7.5.	 	Monies to be Held in Trust	 	37
	 	Section 7.6.	 	Compensation and Expenses of Trustee	 	38
	 	Section 7.7.	 	Officers' Certificate as Evidence	 	38
	 	Section 7.8.	 	Conflicting Interests of Trustee	 	38
	 	Section 7.9.	 	Eligibility of Trustee	 	38
	 	Section 7.10.	 	Resignation or Removal of Trustee	 	39
	 	Section 7.11.	 	Acceptance by Successor Trustee	 	40
	 	Section 7.12.	 	Succession by Merger, Etc	 	40
	 	Section 7.13.	 	Preferential Collection of Claims	 	40
	 	Section 7.14.	 	Trustee's Application for Instructions from the Company	 	40
	

ARTICLE EIGHT THE NOTEHOLDERS	
 	

41
	 	

Section 8.1.	
 	

Action by Noteholders	
 	

41
	 	Section 8.2.	 	Proof of Execution by Noteholders	 	41
	 	Section 8.3.	 	Who Are Deemed Absolute Owners	 	41
	 	Section 8.4.	 	Company-Owned Notes Disregarded	 	41
	 	 	 	 	 

iii

 

	 	Section 8.5.	 	Revocation of Consents; Future Holders Bound	 	42
	

ARTICLE NINE MEETINGS OF NOTEHOLDERS	
 	

42
	 	

Section 9.1.	
 	

Purpose of Meetings	
 	

42
	 	Section 9.2.	 	Call of Meetings by Trustee	 	42
	 	Section 9.3.	 	Call of Meetings by Company or Noteholders	 	43
	 	Section 9.4.	 	Qualifications for Voting	 	43
	 	Section 9.5.	 	Regulations	 	43
	 	Section 9.6.	 	Voting	 	43
	 	Section 9.7.	 	No Delay of Rights by Meeting	 	44
	

ARTICLE TEN SUPPLEMENTAL INDENTURES	
 	

45
	 	

Section 10.1.	
 	

Supplemental Indentures Without Consent of Noteholders	
 	

45
	 	Section 10.2.	 	Supplemental Indenture with Consent of Noteholders	 	46
	 	Section 10.3.	 	Effect of Supplemental Indenture	 	46
	 	Section 10.4.	 	Notation on Notes	 	47
	 	Section 10.5.	 	Evidence of Compliance of Supplemental Indenture to be Furnished to Trustee	 	47
	

ARTICLE ELEVEN CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE	
 	

47
	 	

Section 11.1.	
 	

Company May Consolidate, Etc on Certain Terms	
 	

47
	 	Section 11.2.	 	Successor Corporation to be Substituted	 	47
	 	Section 11.3.	 	Opinion of Counsel to be Given Trustee	 	48
	

ARTICLE TWELVE SATISFACTION AND DISCHARGE OF INDENTURE	
 	

48
	 	

Section 12.1.	
 	

Discharge of Indenture	
 	

48
	 	Section 12.2.	 	Deposited Monies to be Held in Trust by Trustee	 	48
	 	Section 12.3.	 	Paying Agent to Repay Monies Held	 	48
	 	Section 12.4.	 	Return of Unclaimed Monies	 	49
	 	Section 12.5.	 	Reinstatement	 	49
	

ARTICLE THIRTEEN IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS	
 	

49
	 	

Section 13.1.	
 	

Indenture and Notes Solely Corporate Obligations	
 	

49
	

ARTICLE FOURTEEN CONVERSION OF NOTES	
 	

49
	 	 	 	 	 

iv

 

	 	Section 14.1.	 	Right to Convert	 	49
	 	Section 14.2.	 	Exercise of Conversion Privilege; Issuance of Common Stock on Conversion; No Adjustment For Interest or Dividends	 	52
	 	Section 14.3.	 	Cash Payments in Lieu of Fractional Shares	 	53
	 	Section 14.4.	 	Conversion Rate	 	53
	 	Section 14.5.	 	Adjustment of Conversion Rate	 	53
	 	Section 14.6.	 	Effect of Reclassification, Consolidation, Merger or Sale	 	59
	 	Section 14.7.	 	Taxes on Shares Issued	 	60
	 	Section 14.8.	 	Reservation of Shares; Shares to be Fully Paid; Compliance with Governmental Requirements; Listing of Common Stock	 	60
	 	Section 14.9.	 	Responsibility of Trustee	 	61
	 	Section 14.10.	 	Notice to Holders Prior to Certain Actions	 	61
	 	Section 14.11	 	Shareholder Rights Plans.	 	62
	

ARTICLE FIFTEEN MISCELLANEOUS PROVISIONS	
 	

62
	 	

Section 15.1.	
 	

Provisions Binding on Company's Successors	
 	

62
	 	Section 15.2.	 	Official Acts by Successor Corporation	 	62
	 	Section 15.3.	 	Addresses for Notices, Etc	 	62
	 	Section 15.4.	 	Governing Law	 	63
	 	Section 15.5.	 	Evidence of Compliance with Conditions Precedent; Certificates to Trustee	 	63
	 	Section 15.6.	 	Legal Holidays	 	63
	 	Section 15.7.	 	Trust Indenture Act	 	63
	 	Section 15.8.	 	No Security Interest Created	 	63
	 	Section 15.9.	 	Benefits of Indenture	 	63
	 	Section 15.10.	 	Table of Contents, Headings, Etc	 	63
	 	Section 15.11.	 	Authenticating Agent	 	64
	 	Section 15.12.	 	Execution in Counterparts	 	64
	 	Section 15.13.	 	Severability	 	64

v

  

 
 

INDENTURE    
    

        INDENTURE, dated as of May 7, 2004, between ImClone Systems Incorporated, a Delaware corporation (hereinafter called the "Company"), having its principal
office at 180 Varick Street, 7th Floor, New York, New York 10014, and The Bank of New York, a New York banking corporation, as trustee hereunder (hereinafter called the "Trustee"),
having its principal corporate trust office at 101 Barclay Street, Floor 8 West, New York, New York, 10286. 

 
 

W I T N E S S E T H:    
    

        WHEREAS, for its lawful corporate purposes, the Company has duly authorized the issue of its 13/8% Convertible Notes due 2024 (hereinafter called
the "Notes"), in an unlimited aggregate principal amount and, to provide the terms and conditions upon which the Notes are to be authenticated, issued and delivered, the Company has duly authorized
the execution and delivery of this Indenture; and 

        WHEREAS,
the Notes, the certificate of authentication to be borne by the Notes, a form of assignment, a form of Designated Event repurchase notice, a form of repurchase notice and a form
of conversion notice to be borne by the Notes are to be substantially in the forms hereinafter provided for; and 

        WHEREAS,
all acts and things necessary to make the Notes, when executed by the Company and authenticated and delivered by the Trustee or a duly authorized authenticating agent, as in
this Indenture provided, the valid, binding and legal obligations of the Company, and to constitute this Indenture a valid agreement according to its terms, have been done and performed, and the
execution of this Indenture and the issue hereunder of the Notes have in all respects been duly authorized. 

        NOW,
THEREFORE, THIS INDENTURE WITNESSETH: 

        That
in order to declare the terms and conditions upon which the Notes are, and are to be, authenticated, issued and delivered, and in consideration of the premises and of the purchase
and
acceptance of the Notes by the holders thereof, the Company covenants and agrees with the Trustee for the equal and proportionate benefit of the respective holders from time to time of the Notes
(except as otherwise provided below), as follows: 

 
 

ARTICLE ONE
  
  DEFINITIONS    
    

        Section
1.1.    Definitions.    The terms defined in this Section 1.1 (except as herein otherwise expressly
provided or unless the context otherwise requires) for all purposes of this Indenture and of any indenture supplemental hereto shall have the respective meanings specified in this Section 1.1.
All other terms used in this Indenture that are defined in the Trust Indenture Act or which are by reference therein defined in the Securities Act (except as herein otherwise expressly provided or
unless the context otherwise requires) shall have the meanings assigned to such terms in said Trust Indenture Act and in said Securities Act as in force at the date of the execution of this Indenture.
The words "herein", "hereof", "hereunder", and words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other Subdivision. The terms defined in this
Article include the plural as well as the singular. 

        "Additional Interest" has the meaning specified in Section 2(e) of the Registration Rights Agreement. 

        "Additional Interest Notice" has the meaning specified in Section 4.11. 

1

 

        "Additional Notes" means Notes issued under this Indenture after the Issue Date and in compliance with Section 2.10. 

        "Adjustment Event" has the meaning specified in Section 14.5(k). 

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

        "Board of Directors" means the Board of Directors of the Company or a committee of such Board duly authorized to act for it hereunder. 

        "Business Day" means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which the banking institutions in The City
of New York or the city in which the Corporate Trust Office is located are authorized or obligated by law or executive order to close or be closed. 

        "Closing Sale Price" has the meaning specified in Section 14.5(g)(1). 

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

        "Common Stock" means any stock of any class of the Company which has no preference in respect of dividends or of amounts payable in the
event of any voluntary or involuntary liquidation, dissolution or winding up of the Company and which is not subject to redemption by the Company. Subject to the provisions of Section 14.6,
however, shares issuable on conversion of Notes shall include only shares of the class designated as common stock of the Company at the date of this Indenture (namely, the Common Stock, par value
$.001 per share) or shares of any class or classes resulting from any reclassification or reclassifications thereof and which have no preference in respect of dividends or of amounts payable in the
event of any voluntary or involuntary liquidation, dissolution or winding up of the Company and which are not subject to redemption by the Company;  provided, however, that if at any time there shall be more than one such resulting class, the shares of
each such class then so issuable shall be substantially in the proportion which the total number of shares of such class resulting from all such reclassifications bears to the total number of shares
of all such classes resulting from all such reclassifications. 

        "Company" means the corporation named as the "Company" in the first paragraph of this Indenture, and, subject to the provisions of Article
Eleven and Section 14.6, shall include its successors and assigns. 

        "Company Repurchase Notice" has the meaning specified in Section 3.7(b). 

        "Company Repurchase Notice Date" has the meaning specified in Section 3.7(b) 

        "Conversion Notice" has the meaning specified in Section 14.2. 

        "Conversion Price" as of any day will equal $1,000 divided by the Conversion Rate as of such date. 

        "Conversion Rate" has the meaning specified in Section 14.4. 

        "Corporate Trust Office" or other similar term, means the designated office of the Trustee at which at any particular time its corporate
trust business shall be administered, which office is, at the date as of which this Indenture is dated, located at 101 Barclay Street, 8th Floor West, New York, New York, 10286, Attention: Corporate
Trust Trustee Administration. 

2

 

        "Current Market Price" has the meaning specified in Section 14.5(g). 

        "Custodian" means The Bank of New York, as custodian with respect to the Notes in global form, or any successor entity thereto. 

        "Default" means any event that is, or after notice or passage of time, or both, would be, an Event of Default. 

        "Defaulted Interest" has the meaning specified in Section 2.3. 

        "Depositary" means, with respect to the Notes issuable or issued in whole or in part in global form, the Person specified in
Section 2.5(d) as the Depositary with respect to such Notes, until a successor shall have been appointed and become such pursuant to the applicable provisions of this Indenture, and thereafter,
"Depositary" shall mean or include such successor. 

        "Designated Event" shall mean any Fundamental Change or a Termination of Trading. 

        "Designated Event Expiration Time" has the meaning specified in Section 3.5(b). 

        "Designated Event Notice" has the meaning specified in Section 3.5(b). 

        "Designated Event Repurchase Date" has the meaning specified in Section 3.5(a). 

        "Determination Date" has the meaning specified in Section 14.5(k). 

        "Event of Default" means any event specified in Section 6.1(a), (b), (c), (d), (e) or (f). 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder, as in effect
from time to time. 

        "Ex-Dividend Date" has the meaning specified in Section 14.5(d). 

        "Expiration Time" has the meaning specified in Section 14.5(f). 

        "Fair Market Value" has the meaning specified in Section 14.5(g). 

        "Fundamental Change" means the occurrence of any transaction or event (whether by means of an exchange offer, liquidation, tender offer,
consolidation, merger, combination, reclassification, recapitalization or otherwise) in connection with which all or substantially all of the Common Stock shall be exchanged for, converted into,
acquired for or constitutes solely the right to receive consideration that is not all or substantially all common stock that is listed (or, upon consummation of or immediately following such
transaction or event, which will be listed) on a United States national securities exchange or approved (or, upon consummation of or immediately following such transaction or event, which will be
approved) for quotation on the Nasdaq National Market or any similar United States system of automated dissemination of quotations of securities prices. 

        "Global Note" has the meaning specified in Section 2.5(b). 

        "Indenture" means this instrument as originally executed or, if amended or supplemented as herein provided, as so amended or supplemented. 

        "Initial Purchasers" means Morgan Stanley & Co. Incorporated and UBS Securities LLC. 

        "Issue Date" means May 7, 2004. 

        "Interest" means, when used with reference to the Notes, any interest payable under the terms of the Notes, including Additional Interest,
if any, payable under the terms of the Registration Rights Agreement. 

        "Measurement Period" has the meaning specified in Section 14.1. 

        "Non-Electing Share" has the meaning specified in Section 14.6. 

3

 

        "Note" or "Notes" means any Note or Notes, as the case may be, authenticated and delivered
under this Indenture, including the Global Note. 

        "Note register" has the meaning specified in Section 2.5(a). 

        "Note registrar" has the meaning specified in Section 2.5(a). 

        "Noteholder" or "holder" as applied to any Note, or other similar terms (but excluding the
term "beneficial holder"), means any Person in whose name at the time a particular Note is registered on the Note registrar's books. 

        "Notice Date" means the date of mailing of the notice of redemption pursuant to Section 3.2. 

        "Officers' Certificate" means a written certificate containing the information specified in Section 15.5 signed in the name of the
Company by its Chairman of the Board, Chief Executive Officer, President or any Vice President and by its Treasurer or any Assistant Treasurer, Controller or any Assistant Controller, or Secretary or
any Assistant Secretary of the Company, and delivered to the Trustee. 

        "Opinion of Counsel" means an opinion in writing signed by legal counsel, who may be an employee of or counsel to the Company, or other
counsel reasonably acceptable to the Trustee. 

        "Outstanding", when used with reference to Notes and subject to the provisions of Section 8.4, means, as of any particular time,
all Notes authenticated and delivered by the Trustee under this Indenture, except: 

        (a)   Notes
theretofore canceled by the Trustee or delivered to the Trustee for cancellation; 

        (b)   Notes,
or portions thereof, (i) for the redemption of which monies in the necessary amount shall have been deposited in trust with the Trustee or with any paying
agent (other than the Company) or (ii) which shall have been otherwise defeased in accordance with Article Twelve; 

        (c)   Notes
paid pursuant to Section 2.6 or in lieu of which, or in substitution for which, other Notes shall have been authenticated and delivered pursuant to the
terms of Section 2.6; and 

        (d)   Notes
converted into Common Stock pursuant to Article Fourteen and Notes deemed not outstanding pursuant to Article Three. 

        "Person" means a corporation, an association, a partnership, a limited liability company, an individual, a joint venture, a joint stock
company, a trust, an unincorporated organization or a government or an agency or a political subdivision thereof. 

        "Portal Market" means The Portal Market operated by the National Association of Securities Dealers, Inc. or any successor thereto. 

        "Predecessor Note" of any particular Note means every previous Note evidencing all or a portion of the same debt as that evidenced by such
particular Note, and, for the purposes of this definition, any Note authenticated and delivered under Section 2.6 in lieu of a lost, destroyed or stolen Note shall be deemed to evidence the
same debt as the lost, destroyed or stolen Note that it replaces. 

        "Purchased Shares" has the meaning specified in Section 14.5(f). 

        "QIB" means a "qualified institutional buyer" as defined in Rule 144A. 

        "Record Date" means has the meaning specified in Section 14.5(g)(4). 

        "Registration Rights Agreement" means that certain Registration Rights Agreement, dated as of May 7, 2004, among the Company and
the Initial Purchasers, as amended from time to time in accordance with its terms. 

4

 

        "Repurchase Date" has the meaning specified in Section 3.6. 

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

        "Restricted Securities" has the meaning specified in Section 2.5(d). 

        "Rule 144A" means Rule 144A as promulgated under the Securities Act. 

        "Securities" has the meaning specified in Section 14.5(d). 

        "Securities Act" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, as in effect from
time to time. 

        "Significant Subsidiary" means, as of any date of determination, a Subsidiary of the Company, if as of such date of determination either
(a) the assets of such subsidiary equal 10% or more of the Company's total consolidated assets or (b) the total revenue of which represented 10% or more of the Company's consolidated
total revenue for the most recently completed fiscal year. 

        "Subsidiary" means, with respect to any Person, (i) any corporation, association or other business entity of which more than 50% of
the total voting power of shares of capital stock or other equity interest entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees
thereof is at the time owned or controlled, directly or indirectly, by such Person or one or more of the other subsidiaries of that Person (or a combination thereof) and (ii) any partnership
(a) the sole general partner or managing general partner of which is such Person or a subsidiary of such Person or (b) the only general partners of which are such Person or of one or
more subsidiaries of such Person (or any combination thereof). 

        "Termination of Trading" shall be deemed to have occurred if the Common Stock (or other common stock into which the Notes are then
convertible) is neither listed for trading on a United States national securities exchange nor approved for trading on The Nasdaq National Market. 

        "Trading Day" has the meaning specified in Section 14.5(g)(5). 

        "Trading Price" of the Notes on any date of determination means the average of the secondary market bid quotations obtained by the Trustee
for $10,000,000 principal amount of the Notes at approximately 3:30 p.m., New York City time, on such determination date from three independent nationally recognized securities dealers selected
by the Company; provided that if three such bids cannot reasonably be obtained by the Trustee, but two such bids are obtained, then the average of the two bids shall be used, and if only one such bid
can reasonably be obtained by the Trustee, that one bid shall be used. If the Trustee cannot reasonably obtain at least one bid for $10,000,000 principal amount of the Notes from a nationally
recognized securities dealer then the Trading Price per $1,000 principal amount of Notes will be deemed to be less than 98% of the product of (a) the Closing Sale Price on such date and
(b) the number of shares of Common Stock issuable upon conversion of $1,000 principal amount of the Notes. 

        "Trigger Event" has the meaning specified in Section 14.5(d). 

        "Trust Indenture Act" means the Trust Indenture Act of 1939, as amended, as it was in force at the date of this Indenture, except as
provided in Sections 10.3 and 14.6; provided, however, that, in the event the Trust Indenture Act of
1939 is amended after the date hereof, the term "Trust Indenture 

5

 

Act"
shall mean, to the extent required by such amendment, the Trust Indenture Act of 1939 as so amended. 

        "Trustee" means The Bank of New York and its successors and any corporation resulting from or surviving any consolidation or merger to
which it or its successors may be a party and any successor trustee at the time serving as successor trustee hereunder. 

        The
definitions of certain other terms are as specified in Sections 2.5 and 3.5 and Article Fourteen. 

6

  

 
 

ARTICLE TWO
  
  ISSUE, DESCRIPTION, EXECUTION,
  REGISTRATION AND EXCHANGE OF NOTES

        Section
2.1    Designation Amount and Issue of Notes.    The Notes shall be designated as "13/8%
Convertible Notes due 2024". On the Issue Date, the Trustee shall authenticate and deliver $600,000,000 of Notes and, at any time and from time to time thereafter, the Trustee shall authenticate and
deliver Notes for original issue in an aggregate principal amount specified in such order, in each case upon a written order of the Company signed by its Chairman of the Board, Chief Executive
Officer, President or any Vice President and by its Treasurer or any Assistant Treasurer, Controller or any Assistant Controller or Secretary or any Assistant Secretary, without any further action by
the Company hereunder. Such order shall specify the amount of the Notes to be authenticated and the date on which the original issue of Notes is to be authenticated. The aggregate principal amount of
Notes outstanding at any time is unlimited. 

        Section
2.2    Form of Notes.    The Notes and the Trustee's certificate of authentication to be borne by such Notes
shall be substantially in the form set forth in Exhibit A and the terms and provisions contained in the form of Note attached as  Exhibit A hereto
shall constitute, and are hereby expressly made, a part of this Indenture and, to the extent applicable, the Company and the
Trustee, by their execution and delivery of this Indenture, expressly agree to such terms and provisions and to be bound thereby. 

        Any
of the Notes may have such letters, numbers or other marks of identification and such notations, legends and endorsements as the officers executing the same may approve (execution
thereof to be conclusive evidence of such approval) and as are not inconsistent with the provisions of this Indenture, or as may be required to comply with any law or with any rule or regulation made
pursuant thereto or with any rule or regulation of any securities exchange or automated quotation system on which the Notes may be listed, or to conform to usage. 

        Any
Global Note shall represent such of the outstanding Notes as shall be specified therein and shall provide that it shall represent the aggregate amount of outstanding Notes from time
to time endorsed thereon and that the aggregate amount of outstanding Notes represented thereby may from time to time be increased or reduced to reflect redemptions, repurchases, conversions,
transfers or exchanges permitted hereby. Any endorsement of a Global Note to reflect the amount of any increase or decrease in the amount of outstanding Notes represented thereby shall be made by the
Trustee or the Custodian, at the direction of the Trustee, in such manner and upon instructions given by the holder of such Notes in accordance with this Indenture. Payment of principal of and
Interest on any Global Note shall be made to the holder of such Note. 

        Section
2.3    Date and Denomination of Notes; Payments of Interest.    The Notes shall be issuable in registered form
without coupons in denominations of $1,000 principal amount and integral multiples thereof. Every Note shall be dated the date of its authentication and shall bear Interest from the applicable date in
each case as specified on the face of the form of Note attached as Exhibit A hereto. Interest on the Notes shall be computed on the basis of a
360-day year comprised of twelve (12) 30-day months. 

        The
Person in whose name any Note (or its Predecessor Note) is registered on the Note register at the close of business on any record date with respect to any interest payment date shall
be entitled to receive the Interest payable on such interest payment date, except that the Interest payable upon redemption or repurchase will be payable to the Person to whom principal is payable
pursuant to such redemption or repurchase (unless the redemption date or the repurchase date, as the case may be, falls after a record date and on or prior to the corresponding interest payment date,
in which case the semi-annual payment of Interest becoming due on such interest payment date shall be payable to the holders of such Notes registered as such on the applicable record
date). 

        Interest
shall be payable at the office of the Company maintained by the Company for such purposes in New York, New York, which shall initially be an office or agency of the Trustee and
may, as the Company shall specify to the paying agent in writing by each record date, be paid either (i) by check
mailed to the address of the Person entitled thereto as it appears in the Note register (provided that the holder of Notes with an aggregate principal amount in excess of $2,000,000 shall, at the
written election of such holder, be paid by wire transfer in immediately available funds) or (ii) by transfer to an account maintained by such Person located in the United States;  provided, however,
 that payments to the Depositary will be made by wire transfer of immediately available funds to the account of the Depositary or its
nominee. The term "record date" with respect to any interest payment date shall mean the May 1 or November 1 preceding the relevant May 15 or November 15, respectively. 

        Any
Interest on any Note which is payable, but is not punctually paid or duly provided for, on any May 15 or November 15 (herein called "Defaulted Interest") shall
forthwith cease to be payable to the Noteholder on the relevant record date by virtue of his having been such Noteholder, and such Defaulted Interest shall be paid by the Company, at its election in
each case, as provided in clause (1) or (2) below: 

        (1)    The
Company may elect to make payment of any Defaulted Interest to the Persons in whose names the Notes (or their respective Predecessor Notes) are registered at the
close of business on a special record date for the payment of such Defaulted Interest, which shall be fixed in the following manner. The Company shall notify the Trustee in writing of the amount of
Defaulted Interest to be paid on each Note and the date of the payment (which shall be not less than twenty-five (25) days after the receipt by the Trustee of such notice, unless
the Trustee shall consent to an earlier date), and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount to be paid in respect of such Defaulted
Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Person
entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a special record date for the payment of such Defaulted Interest which shall be not more than fifteen
(15) days and not less than ten (10) days prior to the date of the proposed payment, and not less than ten (10) days after the receipt by the Trustee of the notice of the proposed
payment, the Trustee shall promptly notify the Company of such special record date and, in the name and at 

7

 

the
expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the special record date therefor to be mailed, first-class postage prepaid, to each Noteholder at
his address as it appears in the Note register, not less than ten (10) days prior to such special record date. Notice of the proposed payment of such Defaulted Interest and the special record
date therefor having been so mailed, such Defaulted Interest shall be paid to the Persons in whose names the Notes (or their respective Predecessor Notes) were registered at the close of business on
such special record date and shall no longer be payable pursuant to the following clause (2) of this Section 2.3. 

        (2)    The
Company may make payment of any Defaulted Interest in any other lawful manner not inconsistent with the requirements of any securities exchange or automated
quotation system on which the Notes may be listed or designated for issuance, and upon such notice as may be required by such exchange or automated quotation system, if, after notice given by the
Company to the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee. 

        Section
2.4    Execution of Notes.    The Notes shall be signed in the name and on behalf of the Company by the manual
or facsimile signature of its Chairman of the Board, Chief Executive Officer, President or any Vice President and attested by the manual or facsimile signature of its Secretary or any of its Assistant
Secretaries or its Treasurer or any of its Assistant Treasurers (which may be printed, engraved or otherwise reproduced thereon, by facsimile or otherwise). Only such Notes as shall bear thereon a
certificate of authentication substantially in the form set forth on the form of Note attached as Exhibit A hereto, manually executed by the
Trustee (or an authenticating agent appointed by the Trustee as provided by Section 15.11), shall be entitled to the benefits of this Indenture or be valid or obligatory for any purpose. Such
certificate by the Trustee (or such an authenticating agent) upon any Note executed by the Company shall be conclusive evidence that the Note so authenticated has been duly authenticated and delivered
hereunder and that the holder is entitled to the benefits of this Indenture. 

        In
case any officer of the Company who shall have signed any of the Notes shall cease to be such officer before the Notes so signed shall have been authenticated and delivered by the
Trustee, or disposed of by the Company, such Notes nevertheless may be authenticated and delivered or disposed of as though the person who signed such Notes had not ceased to be such officer of the
Company, and any Note may be signed on behalf of the Company by such persons as, at the actual date of the execution of such Note, shall be the proper officers of the Company, although at the date of
the execution of this Indenture any such person was not such an officer. 

        Section
2.5    Exchange and Registration of Transfer of Notes; Restrictions on Transfer; Depositary.    

        (a)   The
Company shall cause to be kept at the Corporate Trust Office a register (the register maintained in such office and in any other office or agency of the Company
designated pursuant to Section 4.2 being herein sometimes collectively referred to as the "Note register") in which, subject to such reasonable regulations as it may prescribe, the Company
shall provide for the registration of Notes and of transfers of Notes. The Note register shall be in written form or in any form capable of being converted into written form within a reasonably prompt
period of time. The Trustee is hereby appointed "Note registrar" for the purpose of registering Notes and transfers of Notes as herein provided. The Company may appoint one or more
co-registrars in accordance with Section 4.2. 

        Upon
surrender for registration of transfer of any Note to the Note registrar or any co-registrar, and satisfaction of the requirements for such transfer set forth in this
Section 2.5, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Notes of any authorized
denominations and of a like aggregate principal amount and bearing such restrictive legends as may be required by this Indenture. 

        Notes
may be exchanged for other Notes of any authorized denominations and of a like aggregate principal amount, upon surrender of the Notes to be exchanged at any such office or agency
maintained by the Company pursuant to Section 4.2. Whenever any Notes are so surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the Notes which
the Noteholder making the exchange is entitled to receive bearing registration numbers not contemporaneously outstanding. 

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

        All
Notes presented or surrendered for registration of transfer or for exchange, redemption, repurchase or conversion shall (if so required by the Company or the Note registrar) be duly
endorsed, or be accompanied by a written instrument or instruments of transfer in form satisfactory to the Company, and the Notes shall be duly executed by the Noteholder thereof or his attorney duly
authorized in writing. 

        No
service charge shall be made to any holder for any registration of transfer or exchange of Notes, but the Company may require payment by the holder of a sum sufficient to cover any
tax, assessment or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Notes. 

        Neither
the Company nor the Trustee nor any Note registrar shall be required to exchange or register a transfer of (a) any Notes for a period of fifteen (15) days next
preceding the mailing of a notice of redemption of Notes to be redeemed, (b) any Notes or portions thereof called for redemption pursuant to Section 3.2, (c) any Notes or portions
thereof surrendered for conversion pursuant to Article Fourteen, (d) any Notes or portions thereof tendered for redemption (and not withdrawn) pursuant to Section 3.5 or (e) any
Notes or portions thereof tendered for repurchase (and not withdrawn) pursuant to Section 3.6. 

        (b)   So
long as the Notes are eligible for book-entry settlement with the Depositary, or unless otherwise required by law, all Notes that, upon initial issuance
are beneficially owned by QIBs or as a result of a sale or transfer after initial issuance are beneficially owned by QIBs, will be represented by one or more Notes in global form registered in the
name of the Depositary or the nominee of the Depositary (the "Global Note"), except as otherwise specified below. The transfer and exchange of beneficial interests in any such Global Note shall be
effected through the Depositary in accordance 

8

 

with
this Indenture and the procedures of the Depositary therefor. The Trustee shall make appropriate endorsements to reflect increases or decreases in the principal amounts of any such Global Note as
set forth on the face of the Note ("Principal Amount") to reflect any such transfers. Except as provided below, beneficial owners of a Global Note shall not be entitled to have certificates registered
in their names, will not receive or be entitled to receive physical delivery of certificates in definitive form and will not be considered holders of such Global Note. 

        (c)   So
long as the Notes are eligible for book-entry settlement with the Depositary, or unless otherwise required by law, upon any transfer of a definitive Note
to a QIB in accordance with Rule 144A, and upon receipt of the definitive Note or Notes being so transferred, together with a certification, substantially in the form on the reverse of the
Note, from the transferor that the transfer is being made in compliance with Rule 144A (or other evidence satisfactory to the Trustee), the Trustee shall make an endorsement on the Global Note
to reflect an increase in the aggregate Principal Amount of the Notes represented by such Global Note, and the Trustee shall cancel such definitive Note or Notes in accordance with the standing
instructions and procedures of the Depositary, the aggregate Principal Amount of the Notes represented by such Global Note to be increased accordingly; provided,
however, that no definitive Note, or portion thereof, in respect of which the Company or an Affiliate of the Company held any beneficial interest shall be included in such
Global Note until such definitive Note is freely tradable in accordance with Rule 144(k) under the Securities Act, provided further that the Trustee shall issue Notes in definitive form upon
any transfer of a beneficial interest in the Global Note to the Company or any Affiliate of the Company. 

        Any
Global Note may be endorsed with or have incorporated in the text thereof such legends or recitals or changes not inconsistent with the provisions of this Indenture as may be
required by the Custodian, the Depositary or by the National Association of Securities Dealers, Inc. in order for the Notes to be tradeable on The Portal Market or as may be required for the
Notes to be tradeable on any other market developed for trading of securities pursuant to Rule 144A or required to comply with any applicable law or any regulation thereunder or with the rules
and regulations of any securities exchange or automated quotation system upon which the Notes may be listed or traded or to conform with any usage with respect thereto, or to indicate any special
limitations or restrictions to which any particular Notes are subject. 

        (d)   Every
Note that bears or is required under this Section 2.5(d) to bear the legend set forth in this Section 2.5(d) (together with any Common Stock issued
upon conversion of the Notes and required to bear the legend set forth in Section 2.5(e), collectively, the "Restricted Securities") shall be subject to the restrictions on transfer set forth
in this Section 2.5(d) (including those set forth in the legend set forth below) unless such restrictions on transfer shall be waived by written consent of the Company, and the holder of each
such Restricted Security, by such Noteholder's acceptance thereof, agrees to be bound by all such restrictions on transfer. As used in Sections 2.5(d) and 2.5(e), the term "transfer" encompasses any
sale, pledge, loan, transfer or other disposition whatsoever of any Restricted Security. 

        Until
the expiration of the holding period applicable to sales thereof under Rule 144(k) under the Securities Act (or any successor provision), any certificate evidencing such
Note (and all securities issued in exchange therefor or substitution thereof, other than Common Stock, if any, issued upon conversion thereof, which shall bear the legend set forth in
Section 2.5(e), if applicable) shall bear a legend in substantially the following form, unless such Note has been sold pursuant to a registration statement that has been declared effective
under the Securities Act (and which continues to be effective at the time of such transfer), or unless otherwise agreed by the Company in writing, with written notice thereof to the Trustee: 

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

THE
HOLDER OF THIS NOTE, BY ITS ACCEPTANCE HEREOF, AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH NOTE, PRIOR TO THE DATE (THE "RESALE RESTRICTION TERMINATION DATE") THAT IS TWO YEARS AFTER THE
LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH IMCLONE SYSTEMS INCORPORATED (THE "COMPANY") OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS NOTE (OR ANY PREDECESSOR OF SUCH
NOTE) ONLY (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A
"QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHICH NOTICE IS GIVEN THAT
THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, OR (D) PURSUANT TO ANOTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE RIGHTS OF THE COMPANY AND THE TRUSTEE PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE
(D) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND IN EACH OF THE FOREGOING CASES WHERE REGISTRATION OR TRANSFER OF
THIS NOTE IS REQUIRED, A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS NOTE COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED AFTER THE
RESALE RESTRICTION TERMINATION DATE UPON THE REQUEST OF THE HOLDER AND THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATES AND/OR OTHER INFORMATION SATISFACTORY TO THE COMPANY. 

        Any
Note (or security issued in exchange or substitution therefor) as to which such restrictions on transfer shall have expired in accordance with their terms or as to conditions for
removal of the 

9

 

foregoing
legend set forth therein have been satisfied may, upon surrender of such Note for exchange to the Note registrar in accordance with the provisions of this Section 2.5, be exchanged
for a new Note or Notes, of like tenor and aggregate principal amount, which shall not bear the restrictive legend required by this Section 2.5(d). 

        Notwithstanding
any other provisions of this Indenture (other than the provisions set forth in the second paragraph of Section 2.5(c) and in this Section 2.5(d)), a Global
Note may not be transferred as a whole or in part except 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. 

        The
Depositary shall be a clearing agency registered under the Exchange Act. The Company initially appoints The Depository Trust Company to act as Depositary with respect to the Notes in
global form. Initially, the Global Note shall be issued to the Depositary, registered in the name of Cede & Co., as the nominee of the Depositary, and deposited with the Custodian for
Cede & Co. 

        If
at any time the Depositary for a Global Note notifies the Company that it is unwilling or unable to continue as Depositary for such Note, or the Depositary ceases to be a clearing
agency registered under the Exchange Act, the Company may appoint a successor Depositary with respect to such Note. If (i) a successor Depositary is not appointed by the Company within ninety
(90) days after the Company receives such notice or the Depositary ceases to be a clearing agency registered under the Exchange Act or (ii) an Event of Default has occurred and is
continuing and the maturity of the Notes shall have been accelerated in accordance with Section 6.1 and any Noteholder shall have given written notice to the Company requesting the issuance of
definitive Notes, the Company will execute, and the Trustee, upon receipt of an Officers' Certificate for the authentication and delivery of Notes, will authenticate and deliver, Notes in certificated
form, in aggregate principal amount equal to the principal amount of such Global Note, in exchange for such Global Note. 

        If
a Note in certificated form is issued in exchange for any portion of a Global Note after the close of business at the office or agency where such exchange occurs on any record date
and before the opening of business at such office or agency on the next succeeding interest payment date, Interest will not be payable on such interest payment date in respect of such certificated
Note, but will be payable on such interest payment date, subject to the provisions of Section 2.3, only to the Person to whom Interest in respect of such portion of such Global Note is payable
in accordance with the provisions of this Indenture. 

        Notes
in certificated form issued in exchange for all or a part of a Global Note pursuant to this Section 2.5 shall be registered in such names and in such authorized
denominations as the Depositary, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Trustee. Upon execution and authentication, the Trustee shall
deliver such Notes in certificated form to the Persons in whose names such Notes in certificated form are so registered. 

        At
such time as all interests in a Global Note have been redeemed, converted, canceled, exchanged for Notes in certificated form, or transferred to a transferee who receives Notes in
certificated form thereof, such Global Note shall, upon receipt thereof, be canceled by the Trustee in accordance with standing procedures and instructions existing between the Depositary and the
Custodian. At any time prior to such cancellation, if any interest in a Global Note is exchanged for Notes in certificated form, redeemed, converted, repurchased or canceled, or transferred to a
transferee who receives Notes in certificated form therefor or any Note in certificated form is exchanged or transferred for part of a Global Note, the principal amount of such Global Note shall, in
accordance with the standing procedures and instructions existing between the Depositary and the Custodian, be appropriately reduced or increased, as the case may be, and an endorsement shall be made
on such Global Note, by the Trustee or the Custodian, at the direction of the Trustee, to reflect such reduction or increase. 

        (e)   Until
the expiration of the holding period applicable to sales thereof under Rule 144(k) under the Securities Act (or any successor provision), any stock
certificate representing Common Stock issued upon conversion of any Note shall bear a legend in substantially the following form, unless such Common Stock has been sold pursuant to a registration
statement that has been declared effective under the Securities Act (and which continues to be effective at the time of such transfer) or such Common Stock has been issued upon conversion of Notes
that have been transferred pursuant to a registration statement that has been declared effective under the Securities Act, or unless otherwise agreed by the Company in writing with written notice
thereof to the transfer agent: 

THE
COMMON STOCK EVIDENCED HEREBY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE
SECURITIES LAWS. NEITHER THE COMMON STOCK EVIDENCED HEREBY NOR ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED
OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION. 

THE
HOLDER OF THE COMMON STOCK EVIDENCED HEREBY, BY ITS ACCEPTANCE HEREOF, AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH COMMON STOCK, PRIOR TO THE DATE (THE "RESALE RESTRICTION TERMINATION DATE")
THAT IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH IMCLONE SYSTEMS INCORPORATED (THE "COMPANY") OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THE COMMON
STOCK EVIDENCED HEREBY (OR ANY PREDECESSOR OF SUCH COMMON STOCK) ONLY (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO
RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHICH NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE
SECURITIES ACT, OR (D) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE RIGHTS OF THE COMPANY AND 

10

 

EQUISERVE,
AS TRANSFER AGENT (OR A SUCCESSOR TRANSFER AGENT, AS APPLICABLE), PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (D) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND IN EACH OF THE FOREGOING CASES WHERE REGISTRATION OR TRANSFER OF THE COMMON STOCK EVIDENCED HEREBY IS REQUIRED, A CERTIFICATE
OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THE COMMON STOCK EVIDENCED HEREBY COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRANSFER AGENT. THIS LEGEND WILL BE REMOVED AFTER THE RESALE
RESTRICTION TERMINATION DATE UPON THE REQUEST OF THE HOLDER AND THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATES AND/OR OTHER INFORMATION SATISFACTORY TO THE COMPANY. 

        Any
such Common Stock as to which such restrictions on transfer shall have expired in accordance with their terms or as to which the conditions for removal of the foregoing legend set
forth therein have been satisfied may, upon surrender of the certificates representing such shares of Common Stock for exchange in accordance with the procedures of the transfer agent for the Common
Stock, be exchanged for a new certificate or certificates for a like number of shares of Common Stock, which shall not bear the restrictive legend required by this Section 2.5(e). 

        (f)    Any
Note or Common Stock issued upon the conversion or exchange of a Note that, prior to the expiration of the holding period applicable to sales thereof under
Rule 144(k) under the Securities Act (or any successor provision), is purchased or owned by the Company or any Affiliate thereof may not be resold by the Company or such Affiliate unless
registered under the Securities Act or resold pursuant to an exemption from the registration requirements of the Securities Act in a transaction which results in such Notes or Common Stock, as the
case may be, no longer being "restricted securities" (as defined under Rule 144). 

        Section
2.6    Mutilated, Destroyed, Lost or Stolen Notes.    In case any Note shall become mutilated or be destroyed,
lost or stolen, the Company in its discretion may execute, and upon its written request the Trustee or an authenticating agent appointed by the Trustee shall authenticate and make available for
delivery, a new Note, bearing a number not contemporaneously outstanding, in exchange and substitution for the mutilated Note, or in lieu of and in substitution for the Note so destroyed, lost or
stolen. In every case the applicant for a substituted Note shall furnish to the Company, to the Trustee and, if applicable, to such authenticating agent such security or indemnity as may be required
by them to save each of them harmless for any loss, liability, cost or expense caused by or connected with such substitution, and, in every case of destruction, loss or theft, the applicant shall also
furnish to the Company, to the Trustee and, if applicable, to such authenticating agent evidence to their satisfaction of the destruction, loss or theft of such Note and of the ownership thereof. 

        Following
receipt by the Trustee or such authenticating agent, as the case may be, of satisfactory security or indemnity and evidence, as described in the preceding paragraph, the
Trustee or such authenticating agent may authenticate any such substituted Note and make available for delivery such Note. Upon the issuance of any substituted Note, the Company may require the
payment by the holder of a sum sufficient to cover any tax, assessment or other governmental charge that may be imposed in relation thereto and any other expenses connected therewith. In case any Note
which has matured or is about to mature or has been called for redemption or has been tendered for repurchase upon a Designated Event (and not withdrawn) or has been surrendered for repurchase on a
Repurchase Date (and not withdrawn) or is to be converted into Common Stock shall become mutilated or be destroyed, lost or stolen, the Company may, instead of issuing a substitute Note, pay or
authorize the payment of
or convert or authorize the conversion of the same (without surrender thereof except in the case of a mutilated Note), as the case may be, if the applicant for such payment or conversion shall furnish
to the Company, to the Trustee and, if applicable, to such authenticating agent such security or indemnity as may be required by them to save each of them harmless for any loss, liability, cost or
expense caused by or connected with such substitution, and, in every case of destruction, loss or theft, the applicant shall also furnish to the Company, the Trustee and, if applicable, any paying
agent or conversion agent evidence to their satisfaction of the destruction, loss or theft of such Note and of the ownership thereof. 

        Every
substitute Note issued pursuant to the provisions of this Section 2.6 by virtue of the fact that any Note is destroyed, lost or stolen shall constitute an additional
contractual obligation of the Company, whether or not the destroyed, lost or stolen Note shall be found at any time, and shall be entitled to all the benefits of (but shall be subject to all the
limitations set forth in) this Indenture equally and proportionately with any and all other Notes duly issued hereunder. To the extent permitted by law, all Notes shall be held and owned upon the
express condition that the foregoing provisions are exclusive with respect to the replacement or payment or conversion or redemption or repurchase of mutilated, destroyed, lost or stolen Notes and
shall preclude any and all other rights or remedies notwithstanding any law or statute existing or hereafter enacted to the contrary with respect to the replacement or payment or conversion or
redemption or repurchase of negotiable instruments or other securities without their surrender. 

        Section
2.7    Temporary Notes.    Pending the preparation of Notes in certificated form, the Company may execute and
the Trustee or an authenticating agent appointed by the Trustee shall, upon the written request of the Company, authenticate and deliver temporary Notes (printed or lithographed). Temporary Notes
shall be issuable in any authorized denomination, and substantially in the form of the Notes in certificated form, but with such omissions, insertions and variations as may be appropriate for
temporary Notes, all as may be determined by the Company. Every such temporary Note shall be executed by the Company and authenticated by the Trustee or such authenticating agent upon the same
conditions and in substantially the same manner, and with the same effect, as the Notes in certificated form. Without unreasonable delay the Company will execute and deliver to the Trustee or such
authenticating agent Notes in certificated form (other than in the case of Notes in global form) and thereupon any or all temporary Notes (other than any such Global Note) may be surrendered in
exchange therefor, at each office or agency maintained by the Company pursuant to Section 5.2 and the Trustee or such authenticating agent shall authenticate and make available for delivery in
exchange for such temporary Notes an equal aggregate principal amount of Notes in certificated form. Such exchange shall be made by the Company at its own expense and without any charge therefor.
Until so exchanged, the temporary Notes shall in all respects be entitled to the same benefits and subject to the 

11

 

same
limitations under this Indenture as Notes in certificated form authenticated and delivered hereunder. 

        Section
2.8    Cancellation of Notes Paid, Etc.    All Notes surrendered for the purpose of payment, redemption,
repurchase, conversion, exchange or registration of transfer shall, if surrendered to the Company or any paying agent or any Note registrar or any conversion agent, be surrendered to the Trustee and
promptly canceled by it, or, if surrendered to the Trustee, shall be promptly canceled by it, and no Notes shall be issued in lieu thereof except as expressly permitted by any of the provisions of
this Indenture. The Trustee shall dispose of such canceled Notes in accordance with its customary procedures. If the Company shall acquire any of the Notes, such acquisition shall not operate as a
redemption, repurchase, or satisfaction of the indebtedness represented by such Notes unless and until the same are delivered to the Trustee for cancellation. 

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

        Section
2.10    Issuance of Additional Notes.    The Company shall be entitled to issue Additional Notes under this
Indenture, which Notes shall have identical terms as the Notes issued on the Issue Date, other than with respect to the date of issuance and issue price. All the Notes issued under this Indenture
shall be treated as a single class for all purposes of this Indenture including waivers, amendments, redemptions and offers to repurchase. 

        With
respect to any Additional Notes, the Company shall set forth in a resolution of the Board of Directors and an Officers' Certificate, a copy of each which shall be delivered to the
Trustee, the following information: 

        (a)   the
aggregate principal amount of such Additional Notes to be authenticated and delivered pursuant to this Indenture; and 

        (b)   the
issue price, the issue date and the CUSIP number of such Additional Notes; provided, however, that no Additional
Notes may be issued at a price that would cause such Additional Notes to not be fungible for U.S. federal income tax purposes with any other Notes issued under this Indenture. 

 
 

ARTICLE THREE
  
  REDEMPTION AND REPURCHASE OF NOTES  
  

        Section
3.1    Optional Redemption by the Company.    The Company may not redeem any Notes prior to May 20,
2009. At any time on or after May 20, 2009 and prior to maturity, the Notes may be redeemed at the option of the Company, in whole or in part, upon notice as set forth in Section 3.2, at
a cash redemption price equal to 100% of the principal amount of the Notes being redeemed, together with accrued and unpaid Interest, if any, to, but excluding, the date fixed for redemption; provided
that if the redemption date falls after a record date and on or prior to the corresponding interest payment date, then the Interest payable on such interest payment date shall be paid to the holders
of record of such Notes on the applicable record date instead of the holders surrendering such Notes for redemption on such date and the redemption price payable to the holders surrendering such Notes
for redemption will be 100% of the principal amount of such Notes. 

        Section
3.2    Notice of Redemptions; Selection of Notes.    In case the Company shall desire to exercise the right to
redeem all or, as the case may be, any part of the Notes pursuant to Section 3.1, it shall fix a date for redemption and it or, at its written request received by the Trustee not fewer than
forty-five (45) days prior (or such shorter period of time as may be acceptable to the Trustee) to the date fixed for redemption, the Trustee in the name of and at the expense of
the Company, shall mail or cause to be mailed a notice of such redemption not fewer than thirty (30) nor more than sixty (60) days prior to the date fixed for redemption to the holders
of Notes so to be redeemed as a whole or in part at their last addresses as the same appear on the Note register; provided, however, that if the Company
shall give such notice, it shall also give written notice, and written notice of the Notes to be redeemed, to the Trustee.. Such mailing shall be by first class mail. The notice, if mailed in the
manner herein provided, shall be conclusively presumed to have been duly given, whether or not the holder receives such notice. In any case, failure to give such notice by mail or any defect in the
notice to the holder of any Note designated for redemption as a whole or in part shall not affect the validity of the proceedings for the redemption of any other Note. Concurrently with the mailing of
any such notice of redemption, the Company shall issue a press release announcing such redemption, the form and content of which press release shall be determined by the Company in its sole
discretion. The failure to issue any such press release or any defect therein shall not affect the validity of the redemption notice or any of the proceedings for the redemption of any Note called for
redemption. 

        Each
such notice of redemption shall specify the aggregate principal amount of Notes to be redeemed, the CUSIP number or numbers of the Notes being redeemed, the date fixed for
redemption (which shall be a Business Day), the redemption price at which Notes are to be redeemed, the place or places of payment, that payment will be made upon presentation and surrender of such
Notes, that Interest accrued to the date fixed for redemption will be paid as specified in said notice, and that on and after said date Interest thereon or on the portion thereof to be redeemed will
cease to accrue. Such notice shall also state the current Conversion Rate and the date on which the right to convert such Notes or portions thereof into Common Stock will expire. If fewer than all the
Notes are to be redeemed, the notice of redemption shall identify the Notes to be redeemed (including CUSIP numbers, if any). In case any Note is to be redeemed in part only, the notice of redemption
shall state the portion of the principal amount thereof to be redeemed and shall state that, on and after the date fixed for redemption, upon surrender of such Note, a new Note or Notes in principal
amount equal to the unredeemed portion thereof will be issued. 

12

 

        On
or prior to the redemption date specified in the notice of redemption given as provided in this Section 3.2, the Company will deposit with the Trustee or with one or more
paying agents (or, if the Company is acting as its own paying agent, set aside, segregate and hold in trust as provided in Section 4.4) an amount of money in immediately available funds
sufficient to redeem on the redemption date all the Notes (or portions thereof) so called for redemption (other than those theretofore surrendered for conversion into Common Stock) at the appropriate
redemption price, together with accrued Interest to, but excluding, the date fixed for redemption; provided, however, that if such payment is made on
the redemption date it must be received by the Trustee or paying agent, as the case may be, by 10:00 a.m. New York City time on such date. The Company shall be entitled to retain
any interest, yield or gain on amounts deposited with the Trustee or any paying agent pursuant to this Section 3.2 in excess of amounts required hereunder to pay the redemption price together
with accrued Interest to, but excluding, the date fixed for redemption. If any Note called for redemption is converted pursuant hereto prior to such redemption, any money deposited with the Trustee or
any paying agent or so segregated and held in trust for the redemption of such Note shall be paid to the Company upon its written request, or, if then held by the Company, shall be discharged from
such trust. Whenever any Notes are to be redeemed, the Company will give the Trustee written notice in the form of an Officers' Certificate not fewer than forty-five (45) days (or
such shorter period of time as may be acceptable to the Trustee) prior to the redemption date as to the aggregate principal amount of Notes to be redeemed. 

        If
less than all of the outstanding Notes are to be redeemed, the Trustee shall select the Notes or portions thereof of the Global Note or the Notes in certificated form to be redeemed
(in principal amounts of $1,000 or integral multiples thereof) by lot, on a pro rata basis or by another method the Trustee deems fair and appropriate. If any Note selected for partial redemption is
submitted for conversion in part after such selection, the portion of such Note submitted for conversion shall be deemed (so far as may be possible) to be the portion to be selected for redemption.
The Notes (or portions thereof) so selected shall be deemed duly selected for redemption for all purposes hereof, notwithstanding that any such Note is submitted for conversion in part before the
mailing of the notice of redemption. 

        Upon
any redemption of less than all of the outstanding Notes, the Company and the Trustee may (but need not), solely for purposes of determining the pro rata allocation among such Notes
as are unconverted and outstanding at the time of redemption, treat as outstanding any Notes surrendered for conversion during the period of fifteen (15) days next preceding the mailing of a
notice of redemption and may (but need not) treat as outstanding any Note authenticated and delivered during such period in exchange for the unconverted portion of any Note converted in part during
such period. 

        Section
3.3    Payment of Notes Called for Redemption.    If notice of redemption has been given as above provided,
the Notes or portion of Notes with respect to which such notice has been given shall, unless converted into Common Stock pursuant to the terms hereof, become due and payable on the date fixed for
redemption and at the place or places stated in such notice at the applicable redemption price, together with Interest accrued to (but excluding) the date fixed for redemption, and on and after said
date (unless the Company shall default in the payment of such Notes at the redemption price, together with Interest accrued to said date) Interest on the Notes or portion of Notes so called for
redemption shall cease to accrue and, after the close of business on the Business Day next preceding the date fixed for redemption (unless the Company shall default in the payment of such Notes at the
redemption price, together with Interest accrued to said date), such Notes shall cease to be convertible into Common Stock and, except as provided in Sections 7.5 and 12.4, to be entitled to any
benefit or security under this Indenture, and the holders thereof shall have no right in respect of such Notes except the right to receive the redemption price thereof and unpaid Interest to (but
excluding) the date fixed for redemption. On presentation and surrender of such Notes at a place of payment in said notice specified, the said Notes or the specified portions thereof shall be paid and
redeemed by the Company at the applicable redemption price, together with Interest accrued thereon to (but excluding) the date fixed for redemption and; provided,
however, that if the redemption date falls after a record date and on or prior to the corresponding interest payment date, then the Interest payable on such interest payment
date shall be paid to the holders of record of such Notes on the applicable record date instead of the holders surrendering such Notes for redemption on such date and the redemption price payable to
the holders surrendering such Notes for redemption will be 100% of the principal amount of such Notes. 

        Upon
presentation of any Note redeemed in part only, the Company shall execute and the Trustee shall authenticate and make available for delivery to the holder thereof, at the expense of
the Company, a new Note or Notes, of authorized denominations, in principal amount equal to the unredeemed portion of the Notes so presented. 

13

  

        Notwithstanding the foregoing, the Trustee shall not redeem any Notes or mail any notice of redemption during the continuance of a default in payment of Interest on the Notes. If any
Note called for redemption shall not be so paid upon surrender thereof for redemption, the principal shall, until paid or duly provided for, bear interest from the date fixed for redemption a rate
equal to 1% per annum plus the rate borne by the Note and such Note shall remain convertible into Common Stock until the principal and Interest shall have been paid or duly provided for. 

        Section
3.4    Conversion Arrangement on Call for Redemption.    In connection with any redemption of Notes, the
Company may arrange for the purchase and conversion of any Notes by an agreement with one or more investment banks or other purchasers to purchase such Notes by paying to the Trustee in trust for the
Noteholders, on or before the date fixed for redemption, an amount not less than the applicable redemption price, together with Interest accrued to (but excluding) the date fixed for redemption, of
such Notes. Notwithstanding anything to the contrary contained in this Article Three, the obligation of the Company to pay the redemption price of such Notes, together with Interest accrued to (but
excluding) the date fixed for redemption shall be deemed to be satisfied and discharged to the extent such amount is so paid by such purchasers. If such an agreement is entered into, a copy of which
will be filed with the Trustee prior to the date fixed for redemption, any Notes not duly surrendered for conversion by the holders thereof may, at the option of the Company, be deemed, to the fullest
extent permitted by law, acquired by such purchasers from such holders and (notwithstanding anything to the contrary contained in Article Fourteen) surrendered by such purchasers for conversion, all
as of immediately prior to the close of business on the date fixed for redemption (and the right to convert any such Notes shall be extended through such time), subject to payment of the above amount
as aforesaid. At the direction of the Company, the Trustee shall hold and dispose of any such amount paid to it in the same manner as it would monies deposited with it by the Company for the
redemption of Notes. Without the Trustee's prior written consent, no arrangement between the Company and such purchasers for the purchase and conversion of any Notes shall increase or otherwise affect
any of the powers, duties, responsibilities or obligations of the Trustee as set forth in this Indenture. 

        Section
3.5    Repurchase at Option of Holders Upon a Designated Event.    If there shall occur a Designated Event at
any time prior to maturity of the Notes, then each Noteholder shall have the right, at such holder's option, to require the Company to repurchase all of such holder's Notes, or any portion thereof
that is an integral multiple of $1,000 principal amount, on the date (the "Designated Event Repurchase Date") specified by the Company that is at least twenty (20) Business Days and no later
than thirty five (35) Business Days after the date of the Designated Event Notice (as defined in Section 3.5(b)) of such Designated Event at a cash repurchase price equal to 100% of the
principal amount thereof, together with accrued Interest to, but excluding, the Designated Event Repurchase Date; provided that if such Designated Event Repurchase Date falls after a record date and
on or prior the corresponding interest payment date, then the Interest payable on such interest payment date shall be paid to the holders of record of the Notes on the applicable record date instead
of the holders surrendering the Notes for repurchase on such date and the repurchase price payable to the holders surrendering such Notes for repurchase will be 100% of the principal amount of such
Notes. Repurchases of Notes under this Section 3.5 shall be made, at the option of the holder thereof, upon: 

        (i)    delivery
to the Trustee (or other paying agent appointed by the Company) by a holder of a duly completed notice (the "Designated Event Repurchase Notice") in the form
set forth on the reverse of the Note prior to the close of business on the date two Business Days prior to the Designated Event Repurchase Date; and 

        (ii)   delivery
or book-entry transfer of the Notes to the Trustee (or other paying agent appointed by the Company) at any time after delivery of the Designated
Event Repurchase Notice (together with all necessary endorsements) at the Corporate Trust Office of the Trustee (or other paying agent appointed by the Company) in the Borough of Manhattan, The City
of New York, as provided in Section 4.2, such delivery being a condition to receipt by the holder of the repurchase price therefor; provided that such repurchase price shall be so paid pursuant
to this Section 3.5 only if the Note so delivered to the Trustee (or other paying agent appointed by the Company) shall conform in all respects to the description thereof in the related
Designated Event Repurchase Notice. 

        The
Company shall purchase from the holder thereof, pursuant to this Section 3.5, a portion of a Note, if the principal amount of such portion is $1,000 or a whole multiple of
$1,000. Provisions of this Indenture that apply to the purchase of all of a Note also apply to the purchase of such portion of such Note. 

        Any
purchase by the Company contemplated pursuant to the provisions of this Section 3.5 shall be consummated by the delivery of the consideration to be received by the holder
promptly following the later of the Designated Event Repurchase Date and the time of the book-entry transfer or delivery of the Note. 

        Notwithstanding
anything herein to the contrary, any holder delivering to the Trustee (or other paying agent appointed by the Company) the Designated Event Repurchase Notice contemplated
by this Section 3.5 shall have the right to withdraw such Designated Event Repurchase Notice at any time prior to the close of business on the date that is two Business Days prior to the
Designated Event Repurchase Date by delivery of a written notice of withdrawal to the Trustee (or other paying agent appointed by the Company) in accordance with Section 3.5(c) below. 

        The
Trustee (or other paying agent appointed by the Company) shall promptly notify the Company of the receipt by it of any Designated Event Repurchase Notice or written notice of
withdrawal thereof. 

        (b)   On
or before the tenth day after the occurrence of a Designated Event, the Company or at its written request (which must be received by the Trustee at least five
(5) Business Days prior to the date the Trustee is requested to give notice as described below, unless the Trustee shall agree in writing to a shorter period), the Trustee, in the name of and
at the expense of the Company, shall mail or cause to 

14

 

be
mailed to all holders of record on the date of the Designated Event a notice (the "Designated Event Notice") of the occurrence of such Designated Event and of the repurchase right at the option of
the holders arising as a result thereof. Such notice shall be mailed in the manner and with the effect set forth in the first paragraph of Section 3.2 (without regard for the time limits set
forth therein). If the Company shall give such notice, the Company shall also deliver a copy of the Designated Event Notice to the Trustee at such time as it is mailed to Noteholders. Concurrently
with the mailing of any Designated Event Notice, the Company shall issue a press release announcing such Designated Event referred to in the Designated Event Notice, the form and content of which
press release shall be determined by the Company in its sole discretion. The failure to issue any such press release or any defect therein shall not affect the validity of the Designated Event Notice
or any proceedings for the repurchase of any Note which any Noteholder may elect to have the Company repurchase as provided in this Section 3.5. 

        Each
Designated Event Notice shall specify the circumstances constituting the Designated Event, the Designated Event Repurchase Date, the price at which the Company shall be obligated to
repurchase Notes, that the holder must exercise the repurchase right on or prior to the close of business on the date that is two Business Days prior to the Designated Event Repurchase Date (the
"Designated Event Expiration Time"), that the holder shall have the right to withdraw any Notes surrendered prior to the Designated Event Expiration Time, a description of the procedure which a
Noteholder must follow to exercise such repurchase right and to withdraw any surrendered Notes, the place or places where the holder is to surrender such holder's Notes, the amount of Interest accrued
on each Note to the Designated Event Repurchase Date and the CUSIP number or numbers of the Notes (if then generally in use) and include a form of Designated Event Repurchase Notice. 

        No
failure of the Company to give the foregoing notices and no defect therein shall limit the Noteholders' repurchase rights or affect the validity of the proceedings for the repurchase
of the Notes pursuant to this Section 3.5. 

        (c)   A
Designated Event Repurchase Notice may be withdrawn by means of a written notice of withdrawal delivered to the office of the Trustee (or other paying agent appointed
by the Company) in accordance with the Designated Event Repurchase Notice at any time prior to the close of business on the date that is two Business Days prior to the Designated Event Repurchase
Date, specifying: 

        (i)    the
certificate number, if any, of the Note in respect of which such notice of withdrawal is being submitted, or the appropriate Depositary information if the Note in
respect of which such notice of withdrawal is being submitted is represented by a Global Note, 

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

        (iii)  the
principal amount, if any, of such Note which remains subject to the original Designated Event Repurchase Notice and which has been or will be delivered for
purchase by the Company. 

        (d)   On
or prior to the Designated Event Repurchase Date, the Company will deposit with the Trustee (or other paying agent appointed by the Company or if the Company is
acting as its own paying agent, set aside, segregate and hold in trust as provided in Section 4.4) an amount of money sufficient to repurchase on the Designated Event Repurchase Date all the
Notes to be repurchased on such date at the appropriate repurchase price, together with accrued Interest to, but excluding, the Designated Event Repurchase Date; provided that if such payment is made
on the Designated Event Repurchase Date it must be received by the Trustee or paying agent, as the case may be, by 10:00 a.m. New York City time, on such date. Subject to receipt of funds
and/or Notes by the Trustee (or other paying agent appointed by the Company), payment for Notes surrendered for repurchase (and not withdrawn) prior to the Designated Event Expiration Time will be
made promptly following the later of (x) the Designated Event Repurchase Date with respect to such Note (provided the holder has satisfied the conditions in Section 3.5) and
(y) the time of delivery of such Note to the Trustee (or other paying agent appointed by the Company) by the holder thereof in the manner required by Section 3.5) by mailing checks for
the amount payable to the holders of such Notes entitled thereto as they shall appear in the Note register. 

        If
the Trustee (or other paying agent appointed by the Company) holds money sufficient to repurchase on the Designated Event Repurchase Date all the Notes or portions thereof that are to
be purchased as of the Designated Event Repurchase Date, then on or after the Designated Event Repurchase Date (i) the Notes will cease to be outstanding, (ii) Interest on the Notes will
cease to accrue, and (iii) all other rights of the holders of such Notes will terminate, whether or not book-entry transfer of the Notes has been made or the Notes have been
delivered to the Trustee or paying agent, other than the right to receive the repurchase price upon delivery of the Notes. 

        (e)   In
the case of a reclassification, change, consolidation, merger, combination, sale or conveyance to which Section 14.6 applies, in which the Common Stock of the
Company is changed or exchanged as a result into the right to receive stock, securities or other property or assets (including cash), which includes shares of Common Stock of the Company or shares of
common stock of another Person that are, or upon issuance will be, traded on a United States national securities exchange or approved for trading on an established automated
over-the-counter trading market in the United States and such shares constitute at the time such change or exchange becomes effective in excess of 50% of the aggregate Fair
Market Value of such stock, securities or other property or assets (including cash) (as determined by the Company, which determination shall be conclusive and binding), then the Person formed by such
consolidation or resulting from such merger or which acquires such assets, as the case may be, shall execute and deliver to the Trustee a supplemental indenture (accompanied by an Opinion of Counsel
that such supplemental indenture complies with the Trust Indenture Act as in force at the date of execution of such supplemental indenture) modifying the provisions of this Indenture relating to the
right of holders of the Notes to cause the Company to repurchase the Notes following a Designated Event, including without limitation the applicable provisions of this Section 3.5 and the 

15

 

definitions
of Common Stock and Designated Event, as appropriate, as determined in good faith by the Company (which determination shall be conclusive and binding), to make such provisions apply to
such other Person if different from the Company and the common stock issued by such Person (in lieu of the Company and the Common Stock of the Company). 

        (f)    The
Company will comply with the provisions of Rule 13e-4 and any other tender offer rules under the Exchange Act to the extent then applicable in
connection with the repurchase rights of the holders of Notes in the event of a Designated Event. The Company will file a Schedule TO or any other schedule required in connection with any offer
by the Company to repurchase the Notes following a Designated Event. 

        Section
3.6    Repurchase of Notes by the Company at Option of the Holder.    Notes shall be purchased by the Company
pursuant to the terms of the Notes at the option of the holder on May 15 of 2009, 2014 and 2019 (each a "Repurchase Date"), for cash, at a repurchase price of 100% of the principal amount, plus
any accrued and unpaid Interest to, but excluding, the Repurchase Date, subject to the provisions of Section 3.7(a). Repurchases of Notes under this Section 3.6 shall be made, at the
option of the holder thereof, upon: 

        (a)   delivery
to the Trustee (or other paying agent appointed by the Company) by a holder of a duly completed notice (the "Repurchase Notice") in the form set forth on the
reverse of the Note during the period beginning at any time from the opening of business on the date that is 20 Business Days
prior to the Repurchase Date until the close of business on the date that is two Business Days prior to the Repurchase Date; and 

        (b)   delivery
or book-entry transfer of the Notes to the Trustee (or other paying agent appointed by the Company) at any time after delivery of the Repurchase
Notice (together with all necessary endorsements) at the Corporate Trust Office of the Trustee (or other paying agent appointed by the Company) in the Borough of Manhattan, The City of New York, as
provided in Section 4.2, such delivery being a condition to receipt by the holder of the repurchase price therefor; provided that such repurchase price shall be so paid pursuant to this
Section 3.6 only if the Note so delivered to the Trustee (or other paying agent appointed by the Company) shall conform in all respects to the description thereof in the related Repurchase
Notice. 

        The
Company shall purchase from the holder thereof, pursuant to this Section 3.6, a portion of a Note, if the principal amount of such portion is $1,000 or a whole multiple of
$1,000. Provisions of this Indenture that apply to the purchase of all of a Note also apply to the purchase of such portion of such Note. 

        Any
purchase by the Company contemplated pursuant to the provisions of this Section 3.6 shall be consummated by the delivery of the consideration to be received by the holder
promptly following the later of the Repurchase Date and the time of the book-entry transfer or delivery of the Note. 

        Notwithstanding
anything herein to the contrary, any holder delivering to the Trustee (or other paying agent appointed by the Company) the Repurchase Notice contemplated by this
Section 3.6 shall have the right to withdraw such Repurchase Notice at any time prior to the close of business on the date that is two Business Days prior to the Repurchase Date by delivery of
a written notice of withdrawal to the Trustee (or other paying agent appointed by the Company) in accordance with Section 3.8. 

        The
Trustee (or other paying agent appointed by the Company) shall promptly notify the Company of the receipt by it of any Repurchase Notice or written notice of withdrawal thereof. 

        Section
3.7    Company Repurchase Notice.    

        (a)   The
Notes to be repurchased on the Repurchase Date pursuant to Section 3.6 will be paid for in cash. 

        At
least three Business Days before the Company Repurchase Notice Date, the Company shall deliver an Officers' Certificate to the Trustee specifying: 

        (i)    the
information required by Section 3.7(b) in the Company Repurchase Notice, and 

        (ii)   whether
the Company desires the Trustee to give the Company Repurchase Notice required by Section 3.7(b). 

        (b)   Unless
the Company has elected to redeem all of the Notes on the Repurchase Date in accordance with Section 3.1, in connection with any repurchase of Notes, the
Company shall, no less than 20 Business Days prior to the Repurchase Date (the "Company Repurchase Notice Date"), give notice to holders at their addresses shown in the Note Register setting forth
information specified in this Section 3.7(b) (the "Company Repurchase Notice"). The Company will also give notice to beneficial owners as required by applicable law. 

        The
Company Repurchase Notice shall: 

        (1)   state
the repurchase price and the Repurchase Date to which the Company Repurchase Notice relates; 

        (2)   include
a form of Repurchase Notice; 

        (3)   state
the name and address of the Trustee (or other paying agent appointed by the Company); 

        (4)   state
that Notes must be surrendered to the Trustee (or other paying agent appointed by the Company) to collect the repurchase price; 

        (5)   if
the Notes are then convertible, state that Notes as to which a Repurchase Notice has been given may be converted only if the Repurchase Notice is withdrawn in
accordance with the terms of this Indenture; and 

16

 

        (6)   state
the CUSIP number of the Notes. 

        The
Company Repurchase Notice may be given by the Company or, at the Company's request, the Trustee shall give such Company Repurchase Notice in the Company's name and at the Company's
expense. 

        (c)   The
Company will comply with the provisions of Rule 13e-4 and any other tender offer rules under the Exchange Act to the extent then applicable in
connection with the repurchase rights of the holders of Notes. The Company will file a Schedule TO or any other schedule required in connection with any offer by the Company to repurchase
Notes. 

        Section
3.8.    Effect of Repurchase Notice.    Upon receipt by the Trustee (or other paying agent appointed by the
Company) of the Repurchase Notice specified in Section 3.6, the holder of the Note in respect of which such Repurchase Notice was given shall (unless such Repurchase Notice is validly
withdrawn) thereafter be entitled to receive solely the repurchase price with respect to such Note. Such repurchase price shall be paid to such holder, subject to receipt of funds and/or Notes by the
Trustee (or other paying agent appointed by the Company), promptly following the later of (x) the Repurchase Date with respect to such Note (provided the holder has satisfied the conditions in
Section 3.6) and (y) the time of delivery of such Note to the Trustee (or other paying agent appointed by the Company) by the holder thereof in the manner required by Section 3.6.
Notes in respect of which a Repurchase Notice has been given by the holder thereof may not be converted pursuant to Article Fourteen hereof on or after the date of the delivery of such Repurchase
Notice unless such Repurchase Notice has first been validly withdrawn. 

        A
Repurchase Notice may be withdrawn by means of a written notice of withdrawal delivered to the office of the Trustee (or other paying agent appointed by the Company) in accordance with
the Repurchase Notice at any time prior to the close of business on the date that is two Business Days prior to the Repurchase Date, specifying: 

        (a)   the
certificate number, if any, of the Note in respect of which such notice of withdrawal is being submitted, or the appropriate Depositary information if the Note in
respect of which such notice of withdrawal is being submitted is represented by a Global Note, 

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

        (c)   the
principal amount, if any, of such Note which remains subject to the original Repurchase Notice and which has been or will be delivered for purchase by the Company. 

        Section
3.9.    Deposit of Repurchase Price.    

        (a)   Prior
to 10:00 a.m. (New York City Time) on the Repurchase Date, the Company shall deposit with the Trustee (or other paying agent appointed by the Company; or,
if the Company or a Subsidiary or an Affiliate of either of them is acting as the paying agent, shall segregate and hold in trust as provided in Section 4.4) an amount of cash (in immediately
available funds if deposited on such Business Day), sufficient to pay the aggregate repurchase price of all the Notes or portions thereof that are to be purchased as of the Repurchase Date. 

        (b)   If
the Trustee or other paying agent appointed by the Company, or the Company or a Subsidiary or Affiliate of either of them, if such entity is acting as the paying
agent, holds cash sufficient to pay the aggregate repurchase price of all the Notes, or portions thereof that are to be purchased as of the Repurchase Date, on or after the Repurchase Date
(i) the Notes will cease to be outstanding, (ii) Interest on the Notes will cease to accrue, and (iii) all other rights of the holders of such Notes will terminate, whether or not
book-entry transfer of the Notes has been made or the Notes have been delivered to the Trustee or paying agent, other than the right to receive the repurchase price upon delivery of the
Notes. 

        Section
3.10.    Notes Repurchased in Part.    Upon presentation of any Note repurchased pursuant to
Section 3.5 or 3.6, as the case may be, only in part, the Company shall execute and the Trustee shall authenticate and make available for delivery to the holder thereof, at the expense of the
Company, a new Note or Notes, of any authorized denomination, in aggregate principal amount equal to the unrepurchased portion of the Notes presented. 

        Section
3.11.    Repayment to the Company.    The Trustee (or other paying agent appointed by the Company) shall
return to the Company any cash or money that remains unclaimed as provided in Section 12.4, together with interest, if any, thereon, held by them for the payment of the repurchase price
pursuant to Section 3.5 or 3.6, as the case may be; provided that to the extent that the aggregate amount of cash or money deposited by the Company pursuant to Section 3.5(d) or
Section 3.9, as the case may be, exceeds the aggregate repurchase price of the Notes or portions thereof which the Company is obligated to purchase as of the Designated Event Repurchase Date or
the Repurchase Date, as the case may be, then, unless otherwise agreed in writing with the Company, promptly after the Business Day following the Designated Event Repurchase Date or the Repurchase
Date, as the case may be, the Trustee shall return any such excess to the Company together with interest, if any, thereon. 

 
 

ARTICLE FOUR
  
  PARTICULAR COVENANTS OF THE COMPANY  
  

        Section
4.1.    Payment of Principal and Interest.    The Company covenants and agrees that it will duly and
punctually pay or cause to be paid the principal of (including the redemption price upon redemption or the repurchase price upon repurchase, in each case pursuant Article Three) and Interest on each
of the Notes at the places, at the respective times and in the manner provided herein and in the Notes. 

17

 

        Section
4.2.    Maintenance of Office or Agency.    The Company will maintain an office or agency in New York, New
York, where the Notes may be surrendered for registration of transfer or exchange or for presentation for payment or for conversion, redemption or repurchase and where notices and demands to or upon
the Company in respect of the Notes and this Indenture may be served. The Company will give prompt written notice to the Trustee of the location, and any change in the location, of such office or
agency not designated or appointed by the Trustee. If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof,
such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office or the office of agency of the Trustee in New York, New York (which shall initially be located
at The Bank of New York, 101 Barclay Street, 8th Floor West, New York, New York, 10286, Attention: Corporate Trust Trustee Administration. 

        The
Company may also from time to time designate co-registrars and one or more offices or agencies where the Notes may be presented or surrendered for any or all such
purposes and may from time to time rescind such designations. The Company will give prompt written notice of any such designation or rescission and of any change in the location of any such other
office or agency. 

        The
Company hereby initially designates the Trustee as paying agent, Note registrar, Custodian and conversion agent and each of the Corporate Trust Office and the office of agency of the
Trustee in New York, New York (which shall initially be located at The Bank of New York, 101 Barclay Street, 8th Floor West, New York, New York, 10286, Attention: Corporate Trust Trustee
Administration), shall be considered as one such office or agency of the Company for each of the aforesaid purposes. 

        So
long as the Trustee is the Note registrar, the Trustee agrees to mail, or cause to be mailed, the notices set forth in Section 7.10(a) and the third paragraph of
Section 7.11. If co-registrars have been appointed in accordance with this Section, the Trustee shall mail such notices only to the Company and the holders of Notes it can identify
from its records. 

        Section
4.3.    Appointments to Fill Vacancies in Trustee's Office.    The Company, whenever necessary to avoid or
fill a vacancy in the office of Trustee, will appoint, in the manner provided in Section 7.10, a Trustee, so that there shall at all times be a Trustee hereunder. 

        Section
4.4.    Provisions as to Paying Agent.    

        (a)   If
the Company shall appoint a paying agent other than the Trustee, or if the Trustee shall appoint such a paying agent, the Company will cause such paying agent to
execute and deliver to the Trustee an instrument in which such agent shall agree with the Trustee, subject to the provisions of this Section 4.4: 

        (1)   that
it will hold all sums held by it as such agent for the payment of the principal of or Interest on the Notes (whether such sums have been paid to it by the Company
or by any other obligor on the Notes) in trust for the benefit of the holders of the Notes; 

        (2)   that
it will give the Trustee written notice of any failure by the Company (or by any other obligor on the Notes) to make any payment of the principal of or Interest on
the Notes when the same shall be due and payable; and 

        (3)   that
at any time during the continuance of an Event of Default, upon request of the Trustee, it will forthwith pay to the Trustee all sums so held in trust. 

        The
Company shall, on or before each due date of the principal or Interest on the Notes, deposit with the paying agent a sum (in funds which are immediately available on the due date for
such payment) sufficient to pay such principal or Interest, and (unless such paying agent is the Trustee) the Company will promptly notify the Trustee in writing of any failure to take such action;
provided, however, that if such deposit is made on the due date, such deposit shall be received by the paying agent by 10:00 a.m. New York City time, on such date. 

        (b)   If
the Company shall act as its own paying agent, it will, on or before each due date of the principal of or Interest on the Notes, set aside, segregate and hold in
trust for the benefit of the holders of the Notes a sum sufficient to pay such principal or Interest so becoming due and will promptly notify the Trustee in writing of any failure to take such action
and of any failure by the Company (or any other obligor under the Notes) to make any payment of the principal or Interest on the Notes when the same shall become due and payable. 

18

  

        (c)   Anything
in this Section 4.4 to the contrary notwithstanding, the Company may, at any time, for the purpose of obtaining a satisfaction and discharge of this
Indenture, or for any other reason, pay or cause to be paid to the Trustee all sums held in trust by the Company or any paying agent hereunder as required by this Section 4.4, such sums to be
held by the Trustee upon the trusts herein contained and upon such payment by the Company or any paying agent to the Trustee, the Company or such paying agent shall be released from all further
liability with respect to such sums. 

        (d)   Anything
in this Section 4.4 to the contrary notwithstanding, the agreement to hold sums in trust as provided in this Section 4.4 is subject to Sections
12.3 and 12.4. 

        The
Trustee shall not be responsible for the actions of any other paying agents (including the Company if acting as its own paying agent) and shall have no control of any funds held by
such other paying agents. 

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

        Section
4.6.    Maintenance of Properties.    The Company will cause all properties used or useful in the conduct of
its business or the business of any Significant Subsidiary to be maintained and kept in good condition, repair and working order and supplied with all necessary equipment and will cause to be made all
necessary repairs, renewals, replacements, betterments and improvements thereof, all as in the judgment of the Company may be necessary so that the business carried on in connection therewith may be
properly and advantageously conducted at all times; provided, however, that nothing in this Section
shall prevent the Company from discontinuing the operation or maintenance of any of such properties if such discontinuance is, in the judgment of the Company, desirable in the conduct of its business
or the business of any subsidiary and not disadvantageous in any material respect to the Noteholders. 

        Section
4.7.    Payment of Taxes and Other Claims.    The Company will pay or discharge, or cause to be paid or
discharged, before the same may become delinquent, (i) all taxes, assessments and governmental charges levied or imposed upon the Company or any Significant Subsidiary or upon the income,
profits or property of the Company or any Significant Subsidiary, (ii) all claims for labor, materials and supplies
which, if unpaid, might by law become a lien or charge upon the property of the Company or any Significant Subsidiary and (iii) all stamp taxes and other duties, if any, which may be imposed by
the United States or any political subdivision thereof or therein in connection with the issuance, transfer, exchange, conversion, redemption or repurchase of any Notes or with respect to this
Indenture; provided, however, that, in the case of clauses (i) and (ii), the Company shall not be
required to pay or discharge or cause to be paid or discharged any such tax, assessment, charge or claim (A) if the failure to do so will not, in the aggregate, have a material adverse impact
on the Company, or (B) if the amount, applicability or validity is being contested in good faith by appropriate proceedings. 

        Section
4.8.    Rule 144A Information Requirement.    Within the period prior to the expiration of the holding
period applicable to sales thereof under Rule 144(k) under the Securities Act (or any successor provision), the Company covenants and agrees that it shall, during any period in which it is not
subject to Section 13 or 15(d) under the Exchange Act, make available to any holder or beneficial holder of Notes or any Common Stock issued upon conversion thereof which continue to be
Restricted Securities in connection with any sale thereof and any prospective purchaser of Notes or such Common Stock designated by such holder or beneficial holder, the information required pursuant
to Rule 144A(d)(4) under the Securities Act upon the request of any holder or beneficial holder of the Notes or such 

19

 

Common
Stock and it will take such further action as any holder or beneficial holder of such Notes or such Common Stock may reasonably request, all to the extent required from time to time to enable
such holder or beneficial holder to sell its Notes or Common Stock without registration under the Securities Act within the limitation of the exemption provided by Rule 144A, as such Rule may
be amended from time to time. Upon the request of any holder or any beneficial holder of the Notes or such Common Stock, the Company will deliver to such holder a written statement as to whether it
has complied with such requirements. 

        Section
4.9.    Stay, Extension and Usury Laws.    The Company covenants (to the extent that it may lawfully do so)
that it shall 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 or other law which would prohibit or forgive
the Company from paying all or any portion of the principal of or Interest on the Notes as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the
covenants or the performance of this Indenture and the Company (to the extent 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 had been
enacted. 

        Section
4.10.    Compliance Certificate.    The Company shall deliver to the Trustee, within one hundred twenty
(120) days after the end of each fiscal year of the Company, a certificate signed by either the principal executive officer, principal financial officer or principal accounting officer of the
Company, stating whether or not to the best knowledge of the signer thereof the Company is in default in the performance and observance of any of the terms, provisions and conditions of this Indenture
(without regard to any period of grace or requirement of notice provided hereunder) and, if the Company shall
be in default, specifying all such defaults and the nature and the status thereof of which the signer may have knowledge. 

        The
Company will deliver to the Trustee, forthwith upon becoming aware of (i) any default in the performance or observance of any covenant, agreement or condition contained in
this Indenture, or (ii) any Event of Default, an Officers' Certificate specifying with particularity such Default or Event of Default and further stating what action the Company has taken, is
taking or proposes to take with respect thereto. 

        Any
notice required to be given under this Section 4.10 shall be delivered to a Responsible Officer of the Trustee at its Corporate Trust Office. 

        Section
4.11.    Additional Interest Notice.    In the event that the Company is required to pay Additional Interest
to holders of Notes 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 days prior to the proposed payment date for the Additional Interest, and the Additional Interest Notice shall set forth the amount of Additional Interest to be paid by the Company
on such payment date. The Trustee shall not at any time be under any duty or owe a responsibility to any holder of Notes to determine the Additional Interest, or with respect to the nature, extent or
calculation of the amount of Additional Interest when made, or with respect to the method employed in such calculation of the Additional Interest. 

 
 

ARTICLE FIVE
  
  NOTEHOLDERS' LISTS AND REPORTS
  BY THE COMPANY AND THE TRUSTEE    
    

        Section
5.1.    Noteholders' Lists.    The Company covenants and agrees that it will furnish or cause to be furnished
to the Trustee, semiannually, not more than fifteen (15) days after each May 15 and 

20

 

November 15
in each year beginning with November 15, 2004, and at such other times as the Trustee may request in writing, within thirty (30) days after receipt by the Company of
any such request (or such lesser time as the Trustee may reasonably request in order to enable it to timely provide any notice to be provided by it hereunder), a list in such form as the Trustee may
reasonably require of the names and addresses of the holders of Notes as of a date not more than fifteen (15) days (or such other date as the Trustee may reasonably request in order to so
provide any such notices) prior to the time such information is furnished, except that no such list need be furnished by the Company to the Trustee so long as the Trustee is acting as the sole Note
registrar. 

        Section
5.2.    Preservation and Disclosure of Lists.    

        (a)   The
Trustee shall preserve, in as current a form as is reasonably practicable, all information as to the names and addresses of the holders of Notes contained in the
most recent list furnished to it as provided in Section 5.1 or maintained by the Trustee in its capacity as Note registrar or co-registrar in respect of the Notes, if so acting. The
Trustee may destroy any list furnished to it as provided in Section 5.1 upon receipt of a new list so furnished. 

        (b)   The
rights of Noteholders to communicate with other holders of Notes with respect to their rights under this Indenture or under the Notes, and the corresponding rights
and duties of the Trustee, shall be as provided by the Trust Indenture Act. 

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

        Section
5.3    Reports by Trustee.    

        (a)   Within
sixty (60) days after February 15 of each year commencing with the year 2005, the Trustee shall transmit to holders of Notes such reports dated as
of February 15 of the year in which such reports are made concerning the Trustee and its actions under this Indenture as may be required pursuant to the Trust Indenture Act at the times and in
the manner provided pursuant thereto. 

        (b)   A
copy of such report shall, at the time of such transmission to holders of Notes, be filed by the Trustee with each stock exchange and automated quotation system upon
which the Notes are listed and with the Company. The Company will promptly notify the Trustee in writing when the Notes are listed on any stock exchange or automated quotation system or delisted
therefrom. 

        Section
5.4    Reports by Company.    The Company shall file with the Trustee (and the Commission if at any time after
the Indenture becomes qualified under the Trust Indenture Act), and transmit to holders of Notes, such information, documents and other reports and such summaries thereof, as may be required pursuant
to the Trust Indenture Act at the times and in the manner provided pursuant to such Act, whether or not the Notes are governed by such Act; provided,  however, that any such information, documents or reports required to be filed with the Commission pursuant to Section 13 or 15(d) of the Exchange
Act shall be filed with the Trustee within fifteen (15) days after the same is so required to be filed with the Commission. Delivery of such reports, information and documents to the Trustee is
for informational purposes only and the Trustee's receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein,
including the Company's compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officers' Certificates). 

21

 
 
 

ARTICLE SIX
  
  REMEDIES OF THE TRUSTEE AND
  NOTEHOLDERS ON AN EVENT OF DEFAULT    
    

        Section
6.1    Events of Default.    In case one or more of the following Events of Default (whatever the reason for
such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of
any administrative or governmental body) shall have occurred and be continuing: 

        (a)   default
in the payment of any installment of Interest upon any of the Notes as and when the same shall become due and payable, and continuance of such default for a
period of thirty (30) days; or 

        (b)   default
in the payment of the principal of or any of the Notes as and when the same shall become due and payable either at maturity or in connection with any redemption
or repurchase pursuant to Article Three, by acceleration or otherwise; or 

        (c)   failure
on the part of the Company duly to observe or perform any other of the covenants or agreements on the part of the Company in the Notes or in this Indenture
(other than a covenant or agreement a default in whose performance or whose breach is elsewhere in this Section 6.1 specifically dealt with) continued for a period of sixty (60) days
after the date on which written notice of such failure, requiring the Company to remedy the same, shall have been given to the Company by the Trustee, or the Company and a Responsible Officer of the
Trustee by the holders of at least twenty-five percent (25%) in aggregate principal amount of the Notes at the time outstanding determined in accordance with Section 8.4; or 

        (d)   the
Company shall commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to the Company or its debts under any
bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of the Company or any
substantial part of the property of the Company, or shall consent to any such relief or to the appointment of or taking possession by any such official in an involuntary case or other proceeding
commenced against the Company, or shall make a general assignment for the benefit of creditors, or shall fail generally to pay its debts as they become due; or 

        (e)   an
involuntary case or other proceeding shall be commenced against the Company seeking liquidation, reorganization or other relief with respect to the Company or its
debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of the Company
or any substantial part of the property of the Company, and such involuntary case or other proceeding shall remain undismissed and unstayed for a period of ninety (90) consecutive days; or 

        (f)    failure
on the part of the Company to provide a Designated Event Notice upon a Designated Event as provided in Section 3.5 within ten (10) days after such
Designated Event occurs; 

then,
and in each and every such case (other than an Event of Default specified in Section 6.1(d) or (e)), unless the principal of all of the Notes shall have already become due and payable,
either the Trustee or the holders of not less than twenty-five percent (25%) in aggregate principal amount of the Notes then outstanding hereunder determined in accordance with
Section 8.4, by notice in writing to the Company (and to the Trustee if given by Noteholders), may declare the principal of on all the Notes and the Interest accrued thereon to be due and
payable immediately, and upon any such declaration the same shall become and shall be immediately due and payable, anything in this Indenture or in the Notes contained to the contrary notwithstanding.
If an Event of Default specified 

22

 

in
Section 6.1(d) or (e) occurs, the principal of all the Notes and the Interest accrued thereon shall be immediately and automatically due and payable without necessity of further
action. This provision, however, is subject to the conditions that if, at any time after the principal of the Notes shall have been so declared due and payable, and before any judgment or decree for
the payment of the monies due shall have been obtained or entered as hereinafter provided, the Company shall pay or shall deposit with the Trustee a sum sufficient to pay all matured installments of
Interest upon all Notes and the principal of any and all Notes which shall have become due otherwise than by acceleration (with Interest on overdue installments of Interest (to the extent that payment
of such interest is enforceable under applicable law) and on such principal at the rate borne by the Notes plus 1%, to the date of such payment or deposit) and amounts due to the Trustee pursuant to
Section 7.6, and if any and all defaults under this Indenture, other than the nonpayment of principal of and accrued Interest on Notes which shall have become due by acceleration, shall have
been cured or waived pursuant to Section 6.7, then and in every such case the holders of a majority in aggregate principal amount of the Notes then outstanding, by written notice to the Company
and to the Trustee, may waive all Defaults or Events of Default and rescind and annul such declaration and its consequences; but no such waiver or rescission and annulment shall extend to or shall
affect any subsequent Default or Event of Default, or shall impair any right consequent thereon. The Company shall notify a Responsible Officer of the Trustee in writing, promptly upon becoming aware
thereof, of any Event of Default. 

        In
case the Trustee shall have proceeded to enforce any right under this Indenture and such proceedings shall have been discontinued or abandoned because of such waiver or rescission and
annulment or for any other reason or shall have been determined adversely to the Trustee, then and in every such case the Company, the holders of Notes, and the Trustee shall be restored respectively
to their several positions and rights hereunder, and all rights, remedies and powers of the Company, the holders of Notes, and the Trustee shall continue as though no such proceeding had been taken. 

        Section
6.2    Payments of Notes on Default; Suit Therefor.    The Company covenants that (a) in case default
shall be made in the payment of any installment of Interest upon any of the Notes as and when the same shall become due and payable, and such default shall have continued for a period of thirty
(30) days, or (b) in case default shall be made in the payment of the principal of any of the Notes as and when the same shall have become due and payable, whether at maturity of the
Notes or in connection with any redemption, by or under this Indenture declaration or otherwise, then, upon demand of the Trustee, the Company will pay to the Trustee, for the benefit of the holders
of the Notes, the whole amount that then shall have become due and payable on all such Notes for principal or Interest, as the case may be, with interest upon the overdue principal and (to the extent
that payment of such interest is enforceable under applicable law) upon the overdue installments of Interest at the rate borne by the
Notes plus 1% and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including reasonable compensation to the Trustee, its agents,
attorneys and counsel, and all other amounts due the Trustee under Section 7.6. Until such demand by the Trustee, the Company may pay the principal and Interest on the Notes to the registered
holders, whether or not the Notes are overdue. 

        In
case the Company shall fail forthwith to pay such amounts upon such demand, the Trustee, in its own name and as trustee of an express trust, shall be entitled and empowered to
institute any actions or proceedings at law or in equity for the collection of the sums so due and unpaid, and may prosecute any such action or proceeding to judgment or final decree, and may enforce
any such judgment or final decree against the Company or any other obligor on the Notes and collect in the manner provided by law out of the property of the Company or any other obligor on the Notes
wherever situated the monies adjudged or decreed to be payable. 

        In
case there shall be pending proceedings for the bankruptcy or for the reorganization of the Company or any other obligor on the Notes under Title 11 of the United States Code, or any
other applicable law, or in case a receiver, assignee or trustee in bankruptcy or reorganization, liquidator, 

23

 

sequestrator
or similar official shall have been appointed for or taken possession of the Company or such other obligor, the property of the Company or such other obligor, or in the case of any other
judicial proceedings relative to the Company or such other obligor upon the Notes, or to the creditors or property of the Company or such other obligor, the Trustee, irrespective of whether the
principal of the Notes shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand pursuant to the provisions
of this Section 6.2, shall be entitled and empowered, by intervention in such proceedings or otherwise, to file and prove a claim or claims for the whole amount of principal and Interest owing
and unpaid in respect of the Notes, and, in case of any judicial proceedings, to 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 and of the Noteholders allowed in such judicial proceedings relative to the Company or any other obligor on the Notes, its or their creditors, or its or their property, and to collect and
receive any monies or other property payable or deliverable on any such claims, and to distribute the same after the deduction of any amounts due the Trustee under Section 7.6, and to take any
other action with respect to such claims, including participating as a member of any official committee of creditors, as it reasonably deems necessary or advisable, and, unless prohibited by law or
applicable regulations, and any receiver, assignee or trustee in bankruptcy or reorganization, liquidator, custodian or similar official is hereby authorized by each of the Noteholders 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 Noteholders, to pay to the Trustee any amount due it for reasonable
compensation, expenses, advances and disbursements, including reasonable counsel fees and expenses incurred by it up to the date of such distribution. To the extent that such payment of reasonable
compensation, expenses, advances and disbursements out of the estate in any such proceedings shall be denied for any reason, payment of the same shall be secured by a lien on, and shall be paid out
of, any and all distributions, dividends, monies, securities and other property which the holders of the Notes may be entitled to receive in such proceedings, whether in liquidation or under any plan
of reorganization or arrangement or otherwise. 

        All
rights of action and of asserting claims under this Indenture, or under any of the Notes, may be enforced by the Trustee without the possession of any of the Notes, or the production
thereof at any trial or other proceeding relative thereto, and any such suit or proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery
of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agent and counsel, be for the ratable benefit of the holders
of the Notes. 

        In
any proceedings brought by the Trustee (and in any proceedings involving the interpretation of any provision of this Indenture to which the Trustee shall be a party) the Trustee shall
be held to represent all the holders of the Notes, and it shall not be necessary to make any holders of the Notes parties to any such proceedings. 

        Section
6.3.    Application of Monies Collected by Trustee.    Any monies collected by the Trustee pursuant to this
Article Six shall be applied in the order following, at the date or dates fixed by the Trustee for the distribution of such monies, upon presentation of the several Notes, and stamping thereon the
payment, if only partially paid, and upon surrender thereof, if fully paid: 

        FIRST:
To the payment of all amounts due the Trustee under Section 7.6; 

        SECOND:
In case the principal of the outstanding Notes shall not have become due and be unpaid, to the payment of Interest on the Notes in default in the order of the maturity of the
installments of such Interest, with interest (to the extent that such interest has been collected by the Trustee) upon the overdue installments of Interest at the rate borne by the Notes plus 1%, such
payments to be made ratably to the Persons entitled thereto; 

        THIRD:
In case the principal of the outstanding Notes shall have become due, by declaration or otherwise, and be unpaid to the payment of the whole amount then owing and unpaid upon the 

24

 

Notes
for principal and Interest, with Interest on the overdue principal and (to the extent that such Interest has been collected by the Trustee) upon overdue installments of Interest at the rate
borne by the Notes plus 1%, and in case such monies shall be insufficient to pay in full the whole amounts so due and unpaid upon the Notes, then to the payment of such Interest without preference or
priority of principal and over Interest or of Interest over principal or of any installment of Interest over any other installment of Interest, or of any Note over any other Note, ratably to the
aggregate of such principal and accrued and unpaid Interest; and 

        FOURTH:
To the payment of the remainder, if any, to the Company or any other Person lawfully entitled thereto. 

        Section
6.4.    Proceedings by Noteholder.    No holder of any Note shall have any right by virtue of or by reference
to any provision of this Indenture to institute any suit, action or proceeding in equity or at law upon or under or with respect to this Indenture, or for the appointment of a receiver, trustee,
liquidator, custodian or other similar official, or for any other remedy hereunder, unless such holder previously shall have given to the Trustee written notice of an Event of Default and of the
continuance thereof, as hereinbefore provided, and unless also the holders of not less than twenty-five percent (25%) in aggregate principal amount of the Notes then outstanding shall have
made written request upon the Trustee to institute such action, suit or proceeding in its own name as Trustee hereunder and shall have offered to the Trustee such reasonable indemnity satisfactory to
it against the costs, expenses and liabilities to be incurred therein or thereby, and the Trustee for sixty (60) days after its receipt of such notice, request and offer of indemnity, shall
have neglected or refused to institute any such action, suit or proceeding and no direction inconsistent with such written request shall have been given to the Trustee pursuant to Section 6.7;
it being understood and intended, and being expressly covenanted by the taker and holder of every Note with every other taker and holder and the Trustee, that no one or more holders of Notes shall
have any right in any manner whatever by virtue of or by reference to any provision of this Indenture to affect, disturb or prejudice the rights of any other holder of Notes, or to obtain or seek to
obtain priority over or preference to any other such holder, or to enforce any right under this Indenture, except in the manner herein provided and for the equal, ratable and common benefit of all
holders of Notes (except as otherwise provided herein). For the protection and enforcement of this Section 6.4, each and every Noteholder and the Trustee shall be entitled to such relief as can
be given either at law or in equity. 

        Notwithstanding
any other provision of this Indenture and any provision of any Note, the right of any holder of any Note to receive payment of the principal of (including the redemption
or repurchase price upon redemption or repurchase pursuant to Article Three), and accrued Interest on such Note, on or after the respective due dates expressed in such Note or in the event of
redemption or repurchase, or to institute suit for the enforcement of any such payment on or after such respective dates against the Company shall not be impaired or affected without the consent of
such holder. 

        Anything
in this Indenture or the Notes to the contrary notwithstanding, the holder of any Note, without the consent of either the Trustee or the holder of any other Note, in its own
behalf and for its own benefit, may enforce, and may institute and maintain any proceeding suitable to enforce, its rights of conversion as provided herein. 

        Section
6.5.    Proceedings by Trustee.    In case of an Event of Default known to a Responsible Officer of the
Trustee, the Trustee may, in its discretion, proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings as are necessary to protect and enforce
any of such rights, either by suit in equity or by action at law or by proceeding in bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement contained in this
Indenture or in aid of the exercise of any power granted in this Indenture, or to enforce any other legal or equitable right vested in the Trustee by this Indenture or by law. 

25

 

        Section
6.6.    Remedies Cumulative and Continuing.    Except as provided in Section 2.6, all powers and
remedies given by this Article Six to the Trustee or to the Noteholders shall, to the extent permitted by law, be deemed cumulative and not exclusive of any thereof or of any other powers and remedies
available to the Trustee or the holders of the Notes, by judicial proceedings or otherwise, to enforce the performance or observance of the covenants and agreements contained in this Indenture, and no
delay or omission of the Trustee or of any holder of any of the Notes to exercise any right or power accruing upon any Default or Event of Default occurring and continuing as aforesaid shall impair
any such right or power, or shall be construed to be a waiver of any such Default or any acquiescence therein, and, subject to the provisions of Section 6.4, every power and remedy given by
this Article Six or by law to the Trustee or to the Noteholders may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the Noteholders. 

        Section
6.7.    Direction of Proceedings and Waiver of Defaults by Majority of Noteholders.    The holders of a
majority in aggregate principal amount of the Notes at the time outstanding determined in accordance with Section 8.4 shall have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee; provided,  however, that (a) such
direction shall not be in conflict with any rule of law or with this Indenture, (b) the Trustee may take any other
action which is not inconsistent with such direction and (c) the Trustee may decline to take any action that would benefit some Noteholder to the detriment of other Noteholders. The holders of
a majority in aggregate principal amount of the Notes at the time outstanding determined in accordance with Section 8.4 may, on behalf of the holders of all of the Notes, waive any past Default
or Event of Default hereunder and its consequences except (i) a default in the payment of Interest on, or the principal of, the Notes, (ii) a failure by the Company to convert any Notes
into Common Stock, (iii) a default in the payment of the redemption price pursuant to Article Three, (iv) a default in the payment of the repurchase price pursuant to Article Three or
(v) a default in respect of a covenant or provisions hereof which under Article Ten cannot be modified or amended without the consent of the holders of each or all Notes then outstanding or
affected thereby. Upon any such waiver, the Company, the Trustee and the holders of the Notes shall be restored to their former positions and rights hereunder; but no such waiver shall extend to any
subsequent or other Default or Event of Default or impair any right consequent thereon. Whenever any Default or Event of Default hereunder shall have been waived as permitted by this
Section 6.7, said Default or Event of Default shall for all purposes of the Notes and this Indenture be deemed to have been cured and to be not continuing; but no such waiver shall extend to
any subsequent or other Default or Event of Default or impair any right consequent thereon. 

        Section
6.8.    Notice of Defaults.    The Trustee shall, within ninety (90) days after a Responsible Officer
of the Trustee has knowledge of the occurrence of a default, mail to all Noteholders, as the names and addresses of such holders appear upon the Note register, notice of all defaults known to a
Responsible Officer, unless such defaults shall have been cured or waived before the giving of such notice; provided, however, that except in the case of default in the payment of the principal of or
Interest on any of the Notes, the Trustee shall be protected in withholding such notice if and so long as a trust committee of directors and/or Responsible Officers of the Trustee in good faith
determines that the withholding of such notice is in the interests of the Noteholders. 

        Section
6.9.    Undertaking to Pay Costs.    All parties to this Indenture agree, and each holder of any Note by his
acceptance thereof shall be deemed to have agreed, that any court may, in its discretion, require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against
the Trustee for any action taken or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit and that such court may in its discretion
assess reasonable costs, including reasonable attorneys' fees and expenses, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by
such party litigant; provided, however, that the provisions of this Section 6.9 (to the extent
permitted by law) shall 

26

 

not
apply to any suit instituted by the Trustee, to any suit instituted by any Noteholder, or group of Noteholders, holding in the aggregate more than ten percent in principal amount of the Notes at
the time outstanding determined in accordance with Section 8.4, or to any suit instituted by any Noteholder for the enforcement of the payment of the principal of or Interest on any Note on or
after the due date expressed in such Note or to any suit for the enforcement of the right to convert any Note in accordance with the provisions of Article Fourteen. 

 
 

ARTICLE SEVEN
  
  THE TRUSTEE    
    

        Section
7.1.    Duties and Responsibilities of Trustee.    The Trustee, prior to the occurrence of an Event of Default
and after the curing of all Events of Default which may have occurred, undertakes to perform such duties and only such duties as are specifically set forth in this Indenture. In case an Event of
Default has occurred (which has not been cured or waived), 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 own affairs. 

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

        (a)   prior
to the occurrence of an Event of Default and after the curing or waiving of all Events of Default which may have occurred: 

        (1)   the
duties and obligations of the Trustee shall be determined solely by the express provisions of this Indenture and the Trust Indenture Act, and the Trustee shall not
be liable except for the performance of such duties and obligations as are specifically set forth in this Indenture and no implied covenants or obligations shall be read into this Indenture and the
Trust Indenture Act against the Trustee; and 

        (2)   in
the absence of bad faith and willful misconduct on the part of the Trustee, the Trustee may conclusively rely as to the truth of the statements and the correctness of
the opinions expressed therein, upon any 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 provisions hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform to the
requirements of this Indenture; 

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

        (c)   the
Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the written direction of the holders of
not less than a majority in principal amount of the Notes at the time outstanding determined as provided in Section 8.4 relating to the time, method and place of conducting any proceeding for
any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture; 

        (d)   whether
or not therein provided, every provision of this Indenture relating to the conduct or affecting the liability of, or affording protection to, the Trustee shall
be subject to the provisions of this Section; 

        (e)   the
Trustee shall not be liable in respect of any payment (as to the correctness of amount, entitlement to receive or any other matters relating to payment) or notice
effected by the 

27

 

Company
or any paying agent or any records maintained by any co-registrar with respect to the Notes; and 

        (f)    if
any party fails to deliver a notice relating to an event the fact of which, pursuant to this Indenture, requires notice to be sent to the Trustee, the Trustee may
conclusively rely on its failure to receive such notice as reason to act as if no such event occurred. 

        None
of the provisions contained in this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur personal financial liability in the performance of any of
its duties or in the exercise of any of its rights or powers, if there is reasonable ground for believing that the repayment of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it. 

        Section
7.2.    Reliance on Documents, Opinions, Etc.    Except as otherwise provided in Section 7.1: 

        (a)   the
Trustee may conclusively rely and shall be protected in acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent,
order, bond, debenture, note, coupon or other paper or document (whether in its original or facsimile form) believed by it in good faith to be genuine and to have been signed or presented by the
proper party or parties; 

        (b)   any
request, direction, order or demand of the Company mentioned herein shall be sufficiently evidenced by an Officers' Certificate (unless other evidence in respect
thereof be herein specifically prescribed); and any resolution of the Board of Directors may be evidenced to the Trustee by a copy thereof certified by the Secretary or an Assistant Secretary of the
Company; 

28

  

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

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

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

        (f)    the
Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall
not be responsible for any misconduct or negligence on the part of any agent or attorney appointed by it with due care hereunder; 

        (g)   the
Trustee shall not be liable for any action taken, suffered or omitted to be taken by it in good faith and reasonably believed by it to be authorized or within the
discretion or rights or powers conferred upon it by this Indenture unless the Trustee's actions or omissions constitute gross negligence; 

        (h)   the
Trustee shall not be deemed to have notice of any Default of Event of Default unless a Responsible Officer has actual knowledge thereof or unless written notice of
any event constituting such a Default or Event of Default has been given; and 

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

        Section 7.3.    No Responsibility for Recitals, Etc.    The recitals contained herein and in the Notes (except
in the Trustee's certificate of authentication) shall be taken as the statements of the Company, and the Trustee assumes no responsibility for the correctness of the same. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the Notes. The Trustee shall not be accountable for the use or application by the Company of any Notes or the proceeds of any
Notes authenticated and delivered by the Trustee in conformity with the provisions of this Indenture. 

        Section 7.4.    Trustee, Paying Agents, Conversion Agents or Registrar May Own Notes.    The Trustee, any
paying agent, any conversion agent or Note registrar, in its individual or any other capacity, may become the owner or pledgee of Notes with the same rights it would have if it were not Trustee,
paying agent, conversion agent or Note registrar. 

        Section 7.5.    Monies to be Held in Trust.    Subject to the provisions of Section 12.4 all monies
received by the Trustee shall, until used or applied as herein provided, be held in trust for the purposes for which they were received. Money held by the Trustee in trust hereunder need not be
segregated from other funds except to the extent required by law. The Trustee shall be under no liability for interest on any money received by it hereunder except as may be agreed in writing from
time to time by the Company and the Trustee. 

29

 

        Section 7.6.    Compensation and Expenses of Trustee.    The Company covenants and agrees to pay to the Trustee
from time to time, and the Trustee shall be entitled to, compensation for all services rendered by it hereunder in any capacity (which shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust) as mutually agreed to from time to time in writing between the Company and the Trustee, and the Company will pay or reimburse the Trustee upon its
request for all reasonable expenses, disbursements and advances reasonably incurred or made by the Trustee in accordance with any of the provisions of this Indenture (including the reasonable
compensation and the expenses and disbursements of its counsel and of all Persons not regularly in its employ) except any such expense, disbursement or advance as may arise from its negligence,
willful misconduct, recklessness or bad faith. The Company also covenants to indemnify the Trustee (or any officer, director or employee of the Trustee), in any capacity under this Indenture and its
agents and any authenticating agent for, and to hold them harmless against, any and all loss, liability, damage, claim or expense, including taxes (other than those based upon, measured by or
determined by the income of the Trustee), incurred without negligence, willful misconduct, recklessness or bad faith on the part of the Trustee or such officers, directors, employees and agent or
authenticating agent, as the case may be, and arising out of or in connection with the acceptance or administration of this trust or in any other capacity hereunder, including the costs and expenses
of defending themselves against any claim (whether asserted by the Company, a holder of Notes or any other Person) of liability in the premises. The obligations of the Company under this
Section 7.6 to compensate or indemnify the Trustee and to pay or reimburse the Trustee for expenses, disbursements and advances shall be secured by a lien prior to that of the Notes upon all
property and funds held or collected by the Trustee as such, except funds held in trust for the benefit of the holders of particular Notes. The obligation of the Company under
this Section shall survive the satisfaction and discharge of this Indenture and the resignation or removal of the Trustee. 

        When
the Trustee and its agents and any authenticating agent incur expenses or render services after an Event of Default specified in Section 6.1(d) or (e) with respect to
the Company occurs, the expenses and the compensation for the services are intended to constitute expenses of administration under any bankruptcy, insolvency or similar laws. 

        Section 7.7.    Officers' Certificate as Evidence.    Except as otherwise provided in Section 7.1,
whenever in the administration of the provisions of this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or omitting any action
hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of negligence or willful misconduct on the part of the Trustee, be deemed to be
conclusively proved and established by an Officers' Certificate delivered to the Trustee. 

        Section 7.8.    Conflicting Interests of Trustee.    If the Trustee has or shall acquire a conflicting interest
within the meaning of the Trust Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in the manner provided by, and subject to the provisions of, the Trust
Indenture Act and this Indenture. 

        Section 7.9.    Eligibility of Trustee.    There shall at all times be a Trustee hereunder which shall be a
Person that is eligible pursuant to the Trust Indenture Act to act as such and has a combined capital and surplus of at least $50,000,000 (or if such Person is a member of a bank holding company
system, its bank holding company shall have a combined capital and surplus of at least $50,000,000). If such Person publishes reports of condition at least annually, pursuant to law or to the
requirements of any supervising or examining authority, then for the purposes of this Section the combined capital and surplus of such Person shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. If at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section 7.9, it shall resign
immediately in the manner and with the effect hereinafter specified in this Article. 

30

 

        Section 7.10.    Resignation or Removal of Trustee.    

        (a)   The
Trustee may at any time resign by giving written notice of such resignation to the Company and to the holders of Notes. Upon receiving such notice of resignation,
the Company shall promptly appoint a successor trustee by written instrument, in duplicate, executed by order of the Board of Directors, one copy of which instrument shall be delivered to the
resigning Trustee and one copy to the successor trustee. If no successor trustee shall have been so appointed and have accepted appointment sixty (60) days after the mailing of such notice of
resignation to the Noteholders, the resigning Trustee may, upon ten (10) Business Days' notice to the Company and the Noteholders, petition, at the expense of the Company, any court of
competent jurisdiction for the appointment of a successor trustee, or, any Noteholder who has been a bona fide holder of a Note or Notes for at least six (6) months may, at the expense of the
Company and subject to the provisions of Section 6.9, on behalf of himself and all others similarly situated, petition any such court for the appointment of a successor trustee. Such court may
thereupon, after such notice, if any, as it may deem proper and prescribe, appoint a successor trustee. 

        (b)   In
case at any time any of the following shall occur: 

        (1)   the
Trustee shall fail to comply with Section 7.8 after written request therefor by the Company or by any Noteholder who has been a bona fide holder of a Note or
Notes for at least six (6) months; or 

        (2)   the
Trustee shall cease to be eligible in accordance with the provisions of Section 7.9 and shall fail to resign after written request therefor by the Company or
by any such Noteholder; or 

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

then,
in any such case, the Company may remove the Trustee and appoint a successor trustee by written instrument, in duplicate, executed by order of the Board of Directors, one copy of which
instrument shall be delivered to the Trustee so removed and one copy to the successor trustee, or, subject to the provisions of Section 6.9, any Noteholder who has been a bona fide holder of a
Note or Notes for at least six (6) months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor trustee; provided, however, that if no successor Trustee shall have been
appointed and have accepted appointment sixty (60) days after either the Company or the Noteholders has removed the Trustee, the Trustee so removed may petition, at the expense of the Company,
any court of competent jurisdiction for an appointment of a successor trustee. Such court may thereupon, after such notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint
a successor trustee. 

        (c)   The
holders of a majority in aggregate principal amount of the Notes at the time outstanding may at any time remove the Trustee and nominate a successor trustee which
shall be deemed appointed as successor trustee unless, within ten (10) days after notice to the Company of such nomination, the Company objects thereto, in which case the Trustee so removed or
any Noteholder, or if such Trustee so removed or any Noteholder fails to act, the Company, upon the terms and conditions and otherwise as in Section 7.10(a) provided, may petition any court of
competent jurisdiction for an appointment of a successor trustee. 

        (d)   Any
resignation or removal of the Trustee and appointment of a successor trustee pursuant to any of the provisions of this Section 7.10 shall become effective
upon acceptance of appointment by the successor trustee as provided in Section 7.11. 

31

 

        Section 7.11.    Acceptance by Successor Trustee.    Any successor trustee appointed as provided in
Section 7.10 shall execute, acknowledge and deliver to the Company and to its predecessor trustee an instrument accepting such appointment hereunder, and thereupon the resignation or removal of
the predecessor trustee shall become effective and such successor trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, duties and obligations of its
predecessor hereunder, with like effect as if originally named as trustee herein; but, nevertheless, on the written request of the Company or of the successor trustee, the trustee ceasing to act
shall, upon payment of any amount then due it pursuant to the provisions of Section 7.6, execute and deliver an instrument transferring to such successor trustee all the rights and powers of
the trustee so ceasing to act. Upon request of any such successor trustee, the Company shall execute any and all instruments in writing for more fully and certainly vesting in and confirming to such
successor trustee all such rights and powers. Any trustee ceasing to act shall, nevertheless, retain a lien upon all property and funds held or collected by such trustee as such, except for funds held
in trust for the benefit of holders of particular Notes, to secure any amounts then due it pursuant to the provisions of Section 7.6. 

        No
successor trustee shall accept appointment as provided in this Section 7.11 unless, at the time of such acceptance, such successor trustee shall be qualified under the
provisions of Section 7.8 and be eligible under the provisions of Section 7.9. 

        Upon
acceptance of appointment by a successor trustee as provided in this Section 7.11, the Company (or the former trustee, at the written direction of the Company) shall mail or
cause to be mailed notice of the succession of such trustee hereunder to the holders of Notes at their addresses as they shall appear on the Note register. If the Company fails to mail such notice
within ten (10) days after acceptance of appointment by the successor trustee, the successor trustee shall cause such notice to be mailed at the expense of the Company. 

        Section 7.12.    Succession by Merger, Etc.    Any corporation into which the Trustee may be merged or
converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation succeeding to all or
substantially all of the corporate trust business of the Trustee (including any trust created by this Indenture), shall be the successor to the Trustee hereunder without the execution or filing of any
paper or any further act on the part of any of the parties hereto, provided that in the case of any corporation succeeding to all or substantially all of the corporate trust business of the Trustee,
such corporation shall be qualified under the provisions of Section 7.8 and eligible under the provisions of Section 7.9. 

        In
case at the time such successor to the Trustee shall succeed to the trusts created by this Indenture, any of the Notes shall have been authenticated but not delivered, any such
successor to the Trustee may adopt the certificate of authentication of any predecessor trustee or authenticating agent appointed by such predecessor trustee, and deliver such Notes so authenticated;
and in case at that time any of the Notes shall not have been authenticated, any successor to the Trustee or any authenticating agent appointed by such successor trustee may authenticate such Notes in
the name of the successor trustee; and in all such cases such certificates shall have the full force that is provided in the Notes or in this Indenture;  provided, however, that the right to adopt the certificate of authentication of any predecessor Trustee
or authenticate Notes in the name of any predecessor Trustee shall apply only to its successor or successors by merger, conversion or consolidation. 

        Section 7.13.    Preferential Collection of Claims.    If and when the Trustee shall be or become a creditor of
the Company (or any other obligor upon the Notes), the Trustee shall be subject to the provisions of the Trust Indenture Act regarding the collection of the claims against the Company (or any such
other obligor). 

        Section 7.14    Trustee's Application for Instructions from the Company.    Any application by the Trustee for
written instructions from the Company (other than with regard to any action proposed to be taken or omitted to be taken by the Trustee that affects the rights of the holders of the Notes under 

32

 

this
Indenture may, at the option of the Trustee, set forth in writing any action proposed to be taken or omitted by the Trustee under this Indenture and the date on and/or after which such action
shall be taken or such omission shall be effective. The Trustee shall not be liable for any action taken by, or omission of, the Trustee in accordance with a proposal included in such application on
or after the date specified in such application (which date shall not be less than three (3) Business Days after the date any officer of the Company actually receives such application, unless
any such officer shall have consented in writing to any earlier date) unless prior to taking any such action (or the effective date in the case of an omission), the Trustee shall have received written
instructions in response to such application specifying the action to be taken or omitted. 

 
 

ARTICLE EIGHT
  THE NOTEHOLDERS    
    

        Section 8.1    Action by Noteholders.    Whenever in this Indenture it is provided that the holders of a
specified percentage in aggregate principal amount of the Notes may take any action (including the making of any demand or request, the giving of any notice, consent or waiver or the taking of any
other action), the fact that at the time of taking any such action, the holders of such specified percentage have joined therein may be evidenced (a) by any instrument or any number of
instruments of similar tenor executed by Noteholders in person or by agent or proxy appointed in writing, or (b) by the record of the holders of Notes voting in favor thereof at any meeting of
Noteholders duly called and held in accordance with the provisions of Article Nine, or (c) by a combination of such instrument or instruments and any such record of such a meeting of
Noteholders. Whenever the Company or the Trustee solicits the taking of any action by the holders of the Notes, the Company or the Trustee may fix in advance of such solicitation, a date as the record
date for determining holders entitled to take such action. The record date shall be not more than fifteen (15) days prior to the date of commencement of solicitation of such action. 

        Section 8.2    Proof of Execution by Noteholders.    Subject to the provisions of Sections 7.1, 7.2 and 9.5,
proof of the execution of any instrument by a Noteholder or its agent or proxy shall be sufficient if made in accordance with such reasonable rules and regulations as may be prescribed by the Trustee
or in such manner as shall be satisfactory to the Trustee. The holding of Notes shall be proved by the registry of such Notes or by a certificate of the Note registrar. 

        The
record of any Noteholders' meeting shall be proved in the manner provided in Section 9.6. 

        Section 8.3    Who Are Deemed Absolute Owners.    The Company, the Trustee, any paying agent, any conversion
agent and any Note registrar may deem the Person in whose name such Note shall be registered upon the Note register to be, and may treat it as, the absolute owner of such Note (whether or not such
Note shall be overdue and notwithstanding any notation of ownership or other writing thereon made by any Person other than the Company or any Note registrar) for the purpose of receiving payment of or
on account of the principal of and Interest on such Note, for conversion of such Note and for all other purposes; and neither the Company nor the Trustee nor any paying agent nor any conversion agent
nor any Note registrar shall be affected by any notice to the contrary. All such payments so made to any holder for the time being, or upon his order, shall be valid, and, to the extent of the sum or
sums so paid, effectual to satisfy and discharge the liability for monies payable upon any such Note. 

        Section 8.4    Company-Owned Notes Disregarded.    In determining whether the holders of the requisite
aggregate principal amount of Notes have concurred in any direction, consent, waiver or other action under this Indenture, Notes which are owned by the Company or any other obligor on the Notes or any
Affiliate of the Company or any other obligor on the Notes shall be disregarded and deemed not to be outstanding for the purpose of any such determination;  provided, however, that, for the purposes of determining whether the Trustee shall be protected in
relying on any such direction, 

33

 

consent,
waiver or other action, only Notes which a Responsible Officer knows are so owned shall be so disregarded. Notes so owned which have been pledged in good faith may be regarded as outstanding
for the purposes of this Section 8.4 if the pledgee shall establish to the satisfaction of the Trustee the pledgee's right to vote such Notes and that the pledgee is not the Company, any other
obligor on the Notes or any Affiliate of the Company or any such other obligor. In the case of a dispute as to such right, any decision by the Trustee taken upon the advice of counsel shall be full
protection to the Trustee. Upon request of the Trustee, the Company shall furnish to the Trustee promptly an Officers' Certificate listing and identifying all Notes, if any, known by the Company to be
owned or held by or for the account of any of the above described Persons, and, subject to Section 7.1, the Trustee shall be entitled to accept such Officers' Certificate as conclusive evidence
of the facts therein set forth and of the fact that all Notes not listed therein are outstanding for the purpose of any such determination. 

        Section 8.5    Revocation of Consents; Future Holders Bound.    At any time prior to (but not after) the
evidencing to the Trustee, as provided in Section 8.1, of the taking of any action by the holders of the percentage in aggregate principal amount of the Notes specified in this Indenture in
connection with such action, any holder of a Note which is shown by the evidence to be included in the Notes the holders of which have consented to such action may, by filing written notice with the
Trustee at its Corporate Trust Office and upon proof of holding as provided in Section 8.2, revoke such action so far as concerns such Note. Except as aforesaid, any such action taken by the
holder of any Note shall be conclusive and binding upon such holder and upon all future holders and owners of such Note and of any Notes issued in exchange or substitution therefor, irrespective of
whether any notation in regard thereto is made upon such Note or any Note issued in exchange or substitution therefor. 

 
 

ARTICLE NINE
  MEETINGS OF NOTEHOLDERS    
    

        Section 9.1    Purpose of Meetings.    A meeting of Noteholders may be called at any time and from time to time
pursuant to the provisions of this Article Nine for any of the following purposes: 

        (1)   to
give any notice to the Company or to the Trustee or to give any directions to the Trustee permitted under this Indenture, or to consent to the waiving of any Default
or Event of Default hereunder and its consequences, or to take any other action authorized to be taken by Noteholders pursuant to any of the provisions of Article Six; 

        (2)   to
remove the Trustee and nominate a successor trustee pursuant to the provisions of Article Seven; 

        (3)   to
consent to the execution of an indenture or indentures supplemental hereto pursuant to the provisions of Section 10.2; or 

        (4)   to
take any other action authorized to be taken by or on behalf of the holders of any specified aggregate principal amount of the Notes under any other provision of this
Indenture or under applicable law. 

        Section 9.2    Call of Meetings by Trustee.    The Trustee may at any time call a meeting of Noteholders to
take any action specified in Section 9.1, to be held at such time and at such place as the Trustee shall determine. Notice of every meeting of the Noteholders, setting forth the time and the
place of such meeting and in general terms the action proposed to be taken at such meeting and the establishment of any record date pursuant to Section 8.1, shall be mailed to holders of Notes
at their addresses as they shall appear on the Note register. Such notice shall also be mailed to the Company. Such notices shall be mailed not less than twenty (20) nor more than ninety
(90) days prior to the date fixed for the meeting. 

34

 

        Any
meeting of Noteholders shall be valid without notice if the holders of all Notes then outstanding are present in person or by proxy or if notice is waived before or after the meeting
by the holders of all Notes outstanding, and if the Company and the Trustee are either present by duly authorized representatives or have, before or after the meeting, waived notice. 

        Section 9.3    Call of Meetings by Company or Noteholders.    In case at any time the Company, pursuant to a
resolution of its Board of Directors, or the holders of at least ten percent (10%) in aggregate principal amount of the Notes then outstanding, shall have requested the Trustee to call a meeting of
Noteholders, by written request setting forth in reasonable detail the action proposed to be taken at the meeting, and the Trustee shall not have mailed the notice of such meeting within twenty
(20) days after receipt of such request, then the Company or such Noteholders may determine the time and the place for such meeting and may call such meeting to take any action authorized in
Section 9.1, by mailing notice thereof as provided in Section 9.2. 

        Section 9.4    Qualifications for Voting.    To be entitled to vote at any meeting of Noteholders a person
shall (a) be a holder of one or more Notes on the record date pertaining to such meeting or (b) be a person appointed by an instrument in writing as proxy by a holder of one or more
Notes on the record date pertaining to such meeting. The only persons who shall be entitled to be present or to speak at any meeting of Noteholders shall be the persons entitled to vote at such
meeting and their counsel and any representatives of the Trustee and its counsel and any representatives of the Company and its counsel. 

        Section 9.5    Regulations.    Notwithstanding any other provisions of this Indenture, the Trustee may make
such reasonable regulations as it may deem advisable for any meeting of Noteholders, in regard to proof of the holding of Notes and of the appointment of proxies, and in regard to the appointment and
duties of inspectors of votes, the submission and examination of proxies, certificates and other evidence of the right to vote, and such other matters concerning the conduct of the meeting as it shall
think fit. 

        The
Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting, unless the meeting shall have been called by the Company or by Noteholders as provided in
Section 9.3, in which case the Company or the Noteholders calling the meeting, as the case may be, shall in like manner appoint a temporary chairman. A permanent chairman and a permanent
secretary of the meeting shall be elected by vote of the holders of a majority in principal amount of the Notes represented at the meeting and entitled to vote at the meeting. 

        Subject
to the provisions of Section 8.4, at any meeting each Noteholder or proxyholder shall be entitled to one vote for each $1,000 principal amount of Notes held or represented
by him; provided, however, that no vote shall be cast or counted at any meeting in respect of any Note
challenged as not outstanding and ruled by the chairman of the meeting to be not outstanding. The chairman of the meeting shall have no right to vote other than by virtue of Notes held by him or
instruments in writing as aforesaid duly designating him as the proxy to vote on behalf of other Noteholders. Any meeting of Noteholders duly called pursuant to the provisions of Section 9.2 or
9.3 may be adjourned from time to time by the holders of a majority of the aggregate principal amount of Notes represented at the meeting, whether or not constituting a quorum, and the meeting may be
held as so adjourned without further notice. 

        Section 9.6    Voting.    The vote upon any resolution submitted to any meeting of Noteholders shall be by
written ballot on which shall be subscribed the signatures of the holders of Notes or of their representatives by proxy and the outstanding principal amount of the Notes held or represented by them.
The permanent chairman of the meeting shall appoint two inspectors of votes who shall count all votes cast at the meeting for or against any resolution and who shall make and file with the secretary
of the meeting their verified written reports in duplicate of all votes cast at the meeting. A record in duplicate of the proceedings of each meeting of Noteholders shall be prepared by the secretary
of the 

35

 

meeting
and there shall be attached to said record the original reports of the inspectors of votes on any vote by ballot taken thereat and affidavits by one or more persons having knowledge of the
facts setting forth a copy of the notice of the meeting and showing that said notice was mailed as provided in Section 9.2. The record shall show the principal amount of the Notes voting in
favor of or against any resolution. The record shall be signed and verified by the affidavits of the permanent chairman and secretary of the meeting and one of the duplicates shall be delivered to the
Company and the other to the Trustee to be preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting. 

        Any
record so signed and verified shall be conclusive evidence of the matters therein stated. 

        Section 9.7    No Delay of Rights by Meeting.    Nothing contained in this Article Nine shall be deemed or
construed to authorize or permit, by reason of any call of a meeting of Noteholders or any rights expressly or impliedly conferred hereunder to make such call, any hindrance or delay in the exercise
of any right or rights conferred upon or reserved to the Trustee or to the Noteholders under any of the provisions of this Indenture or of the Notes. 

36

  

 
 

ARTICLE TEN
  
    SUPPLEMENTAL INDENTURES    
    

        Section
10.1.    Supplemental Indentures Without Consent of Noteholders.    The Company, when authorized by the
resolutions of the Board of Directors, and the Trustee may, from time to time, and at any time enter into an indenture or indentures supplemental hereto for one or more of the following purposes: 

        (a)   make
provision with respect to the conversion rights of the holders of Notes pursuant to the requirements of Section 14.6 and the repurchase obligations of the
Company pursuant to the requirements of Section 3.5(e); 

        (b)   to
convey, transfer, assign, mortgage or pledge to the Trustee as security for the Notes, any property or assets; 

        (c)   to
evidence the succession of another Person to the Company, or successive successions, and the assumption by the successor Person of the covenants, agreements and
obligations of the Company pursuant to Article Eleven; 

        (d)   to
add to the covenants of the Company such further covenants, restrictions or conditions as the Board of Directors and the Trustee shall consider to be for the benefit
of the holders of Notes, and to make the occurrence, or the occurrence and continuance, of a default in any such additional covenants, restrictions or conditions a default or an Event of Default
permitting the enforcement of all or any of the several remedies provided in this Indenture as herein set forth; provided,  however, that in respect of any
such additional covenant, restriction or condition, such supplemental indenture may provide for a particular period of
grace after default (which period may be shorter or longer than that allowed in the case of other defaults) or may provide for an immediate enforcement upon such default or may limit the remedies
available to the Trustee upon such default; 

        (e)   to
provide for the issuance under this Indenture of Notes in coupon form (including Notes registrable as to principal only) and to provide for exchangeability of such
Notes with the Notes issued hereunder in fully registered form and to make all appropriate changes for such purpose; 

        (f)    to
cure any ambiguity or to correct or supplement any provision contained herein or in any supplemental indenture that may be defective or inconsistent with any other
provision contained herein or in any supplemental indenture, or to make such other provisions in regard to matters or questions arising under this Indenture that shall not materially adversely affect
the interests of the holders of the Notes; 

        (g)   to
evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Notes; or 

        (h)   to
modify, eliminate or add to the provisions of this Indenture to such extent as shall be necessary to effect the qualifications of this Indenture under the Trust
Indenture Act, or under any similar federal statute hereafter enacted. 

        Upon
the written request of the Company, accompanied by a copy of the resolutions of the Board of Directors certified by its Secretary or Assistant Secretary authorizing the execution of
any supplemental indenture, the Trustee is hereby authorized to join with the Company in the execution of any such supplemental indenture, to make any further appropriate agreements and stipulations
that may be therein contained and to accept the conveyance, transfer and assignment of any property thereunder, but the Trustee shall not be obligated to, but may in its discretion, enter into any
supplemental indenture that affects the Trustee's own rights, duties or immunities under this Indenture or otherwise. 

        Any
supplemental indenture authorized by the provisions of this Section 10.1 may be executed by the Company and the Trustee without the consent of the holders of any of the Notes
at the time outstanding, notwithstanding any of the provisions of Section 10.2. 

37

 

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

        Section
10.2.    Supplemental Indenture with Consent of Noteholders.    With the consent (evidenced as provided in
Article Eight) of the holders of not less than a majority in aggregate principal amount of
the Notes at the time outstanding, the Company, when authorized by the resolutions of the Board of Directors, and the Trustee may, from time to time and at any time, enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or any supplemental indenture or of
modifying in any manner the rights of the holders of the Notes; provided, however, that no such
supplemental indenture shall (i) extend the fixed maturity of any Note, or reduce the rate or extend the time of payment of Interest thereon, or reduce the principal amount thereof or reduce
any amount payable on redemption or repurchase thereof, or change the obligation of the Company to repurchase any Note at the option of a Noteholder on a Repurchase Date in a manner adverse to the
holders of the Notes, or impair the right of any Noteholder to institute suit for the payment thereof, or make the principal thereof or Interest thereon payable in any coin or currency other than that
provided in the Notes, or change the obligation of the Company to redeem any Note upon the happening of a Designated Event in a manner adverse to the holder of Notes, or impair the right to convert
the Notes into Common Stock subject to the terms set forth herein, including Section 14.6, in each case, without the consent of the holder of each Note so affected, or modify any provisions of
this Section 10.2 or Section 6.7, except to increase any such percentage or to provide that certain other provisions of this Indenture cannot be modified or waived without the consent of
the holder of each Note so affected, or reduce the quorum or voting requirements set forth in Article Nine or (ii) reduce the aforesaid percentage of Notes, the holders of which are required to
consent to any such supplemental indenture, without the consent of the holders of all Notes then outstanding. 

        Upon
the written request of the Company, accompanied by a copy of the resolutions of the Board of Directors certified by its Secretary or Assistant Secretary authorizing the execution of
any such supplemental indenture, and upon the filing with the Trustee of evidence of the consent of Noteholders as aforesaid, the Trustee shall join with the Company in the execution of such
supplemental indenture unless such supplemental indenture affects the Trustee's own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but
shall not be obligated to, enter into such supplemental indenture. 

        It
shall not be necessary for the consent of the Noteholders under this Section 10.2 to approve the particular form of any proposed supplemental indenture, but it shall be
sufficient if such consent shall approve the substance thereof. 

        Section
10.3.    Effect of Supplemental Indenture.    Any supplemental indenture executed pursuant to the provisions
of this Article Ten shall comply with the Trust Indenture Act, as then in effect, provided that this Section 10.3 shall not require such supplemental indenture or the Trustee to be qualified
under the Trust Indenture Act prior to the time such qualification is in fact required under the terms of the Trust Indenture Act or the Indenture has been qualified under the Trust Indenture Act, nor
shall it constitute any admission or acknowledgment by any party to such supplemental indenture that any such qualification is required prior to the time such qualification is in fact required under
the terms of the Trust Indenture Act or the Indenture has been qualified under the Trust Indenture Act. Upon the execution of any supplemental indenture pursuant to the provisions of this Article Ten,
this Indenture shall be and be deemed to be modified and amended in accordance therewith and the respective rights, limitation of rights, obligations, duties and immunities under this Indenture of the
Trustee, the Company and the holders of Notes shall thereafter be determined, exercised and enforced hereunder, subject in all respects to such modifications and amendments and all the terms and
conditions of any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes. 

38

 

        Section
10.4.    Notation on Notes.    Notes authenticated and delivered after the execution of any supplemental
indenture pursuant to the provisions of this Article Ten may bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the Company or the Trustee
shall so determine, new Notes so modified as to conform, in the opinion of the Trustee and the Board of Directors, to any modification of this Indenture contained in any such supplemental indenture
may, at the Company's expense, be prepared and executed by the Company, authenticated by the Trustee (or an authenticating agent duly appointed by the Trustee pursuant to Section 15.11) and
delivered in exchange for the Notes then outstanding, upon surrender of such Notes then outstanding. 

        Section
10.5.    Evidence of Compliance of Supplemental Indenture to be Furnished to Trustee.    Prior to entering
into any supplemental indenture, the Trustee shall receive an Officers' Certificate and an Opinion of Counsel as conclusive evidence that any supplemental indenture executed pursuant hereto complies
with the requirements of this Article Ten. 

 
 

ARTICLE ELEVEN
  
    CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE    
    

        Section
11.1.    Company May Consolidate, Etc on Certain Terms.    Subject to the provisions of Section 11.2,
nothing contained in this Indenture or in any of the Notes shall prevent any consolidation or merger of the Company with or into any other Person or Persons (whether or not affiliated with the
Company),
or successive consolidations or mergers in which the Company or its successor or successors shall be a party or parties, or shall prevent any sale, conveyance, transfer or lease (or successive sales,
conveyances, transfer or leases) the property and assets of the Company substantially as an entirety, to any other Person (whether or not affiliated with the Company);  provided, however, that upon any such consolidation, merger, sale, conveyance, transfer or lease,
(i) the Company is the surviving Person, or the resulting, surviving or transferee Person, if other than the Company, is a corporation organized and existing under the laws of the United States
of America, any state thereof or the District of Columbia, (ii) the due and punctual payment of the principal and Interest on all of the Notes, according to their tenor and the due and punctual
performance and observance of all of the covenants and conditions of this Indenture to be performed by the Company, shall be expressly assumed, by supplemental indenture satisfactory in form to the
Trustee, executed and delivered to the Trustee by the Person (if other than the Company) formed by such consolidation, or into which the Company shall have been merged, or by the Person that shall
have acquired or leased such property, and such supplemental indenture shall provide for the applicable conversion rights set forth in Section 14.6 and (iii) immediately after giving
effect to the transaction described above, no Default or Event of Default shall have happened and be continuing. 

        Section
11.2.    Successor Corporation to be Substituted.    In case of any such consolidation, merger, sale,
conveyance, transfer or lease and upon the assumption by the successor Person, by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the due and
punctual payment of the principal and Interest on all of the Notes and the due and punctual performance of all of the covenants and conditions of this Indenture to be performed by the Company, such
successor Person shall succeed to and be substituted for the Company, with the same effect as if it had been named herein as the party of this first part. Such successor Person thereupon may cause to
be signed, and may issue either in its own name or in the name of ImClone Systems Incorporated any or all of the Notes, issuable hereunder that theretofore shall not have been signed by the Company
and delivered to the Trustee; and, upon the order of such successor Person instead of the Company and subject to all the terms, conditions and limitations in this Indenture prescribed, the Trustee
shall authenticate and shall deliver, or cause to be authenticated and delivered, any Notes that previously shall have been signed and delivered by the officers of the Company to the Trustee for
authentication, and any Notes that such successor Person thereafter shall cause to be signed and delivered to the Trustee for that purpose. All the Notes so issued shall in all respects have the same
legal rank and benefit under this Indenture as the Notes theretofore or thereafter issued in accordance with the terms 

39

 

of
this Indenture as though all of such Notes had been issued at the date of the execution hereof. In the event of any such consolidation, merger, sale, conveyance, transfer or lease, the Person named
as the "Company" in the first paragraph of this Indenture or any successor that shall thereafter have become such in the manner prescribed in this Article Eleven may be dissolved, wound up and
liquidated at any time thereafter and such Person shall be released from its liabilities as obligor and maker of the Notes and from its obligations under this Indenture. 

        In
case of any such consolidation, merger, sale, conveyance, transfer or lease, such changes in phraseology and form (but not in substance) may be made in the Notes thereafter to be
issued as may be appropriate. 

        Section
11.3.    Opinion of Counsel to be Given Trustee.    The Trustee shall receive an Officers' Certificate and an
Opinion of Counsel as conclusive evidence that any such consolidation, merger, sale, conveyance or lease and any such assumption complies with the provisions of this Article Eleven. 

 
 

ARTICLE TWELVE
  
    SATISFACTION AND DISCHARGE OF INDENTURE    
    

        Section
12.1.    Discharge of Indenture.    When (a) the Company shall deliver to the Trustee for cancellation
all Notes theretofore authenticated (other than any Notes that have been destroyed, lost or stolen and in lieu of or in substitution for which other Notes shall have been authenticated and delivered)
and not theretofore canceled, or (b) all the Notes not theretofore canceled or delivered to the Trustee for cancellation shall have become due and payable, or are by their terms to become due
and payable within one year or are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption, and the Company shall deposit with
the Trustee, in trust, funds sufficient to pay at maturity or upon redemption of all of the Notes (other than any Notes that shall have been mutilated, destroyed, lost or stolen and in lieu of or in
substitution for which other Notes shall have been authenticated and delivered) not theretofore canceled or delivered to the Trustee for cancellation, including principal and Interest due or to become
due to such date of maturity or redemption date, as the case may be, accompanied by a verification report, as to the sufficiency of the deposited amount, from an independent certified accountant or
other financial professional satisfactory to the Trustee, and if the Company shall also pay or cause to be paid all other sums payable hereunder by the Company, then this Indenture shall cease to be
of further effect (except as to (i) remaining rights of registration of transfer, substitution and exchange and conversion of Notes, (ii) rights hereunder of Noteholders to receive
payments of principal of and Interest on, the Notes and the other rights, duties and obligations of Noteholders, as beneficiaries hereof with respect to the amounts, if any, so deposited with the
Trustee and (iii) the rights, obligations and immunities of the Trustee hereunder), and the Trustee, on written demand of the Company accompanied by an Officers' Certificate and an Opinion of
Counsel as required by Section 15.5 and at the cost and expense of the Company, shall execute proper instruments acknowledging satisfaction of and discharging this Indenture; the Company,
however, hereby agrees to reimburse the Trustee for any costs or expenses thereafter reasonably and properly incurred by the Trustee and to compensate the Trustee for any services thereafter
reasonably and properly rendered by the Trustee in connection with this Indenture or the Notes. 

        Section
12.2.    Deposited Monies to be Held in Trust by Trustee.    Subject to Section 12.4, all monies
deposited with the Trustee pursuant to Section 12.1, shall be held in trust for the sole benefit of the Noteholders and such monies shall be applied by the Trustee to the payment, either
directly or through any paying agent (including the Company if acting as its own paying agent), to the holders of the particular Notes for the payment or redemption of which such monies have been
deposited with the Trustee, of all sums due and to become due thereon for principal and Interest. 

        Section
12.3.    Paying Agent to Repay Monies Held.    Upon the satisfaction and discharge of this Indenture, all
monies then held by any paying agent of the Notes (other than the Trustee) shall, upon 

40

 

written
request of the Company, be repaid to it or paid to the Trustee, and thereupon such paying agent shall be released from all further liability with respect to such monies. 

        Section
12.4.    Return of Unclaimed Monies.    Subject to the requirements of applicable law, any monies deposited
with or paid to the Trustee for payment of the principal or Interest on Notes and not applied but remaining unclaimed by the holders of Notes for two years after the date upon which the principal or
Interest on such Notes, as the case may be, shall have become due and payable, shall be repaid to the Company by the Trustee on written demand and all liability of the Trustee shall thereupon cease
with respect to such monies; and the holder of any of the Notes shall thereafter look only to the Company for any payment that such holder may be entitled to collect unless an applicable abandoned
property law designates another Person. 

        Section
12.5.    Reinstatement.    If the Trustee or the paying agent is unable to apply any money in accordance with
Section 12.2 by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the Company's obligations under this
Indenture and the Notes shall be revived and reinstated as though no deposit had occurred pursuant to Section 12.1 until such time as the Trustee or the paying agent is permitted to apply all
such money in accordance with Section 12.2; provided, however, that if the Company makes any
payment of Interest on or principal of any Note following the reinstatement of its obligations, the Company shall be subrogated to the rights of the holders of such Notes to receive such payment from
the money held by the Trustee or paying agent. 

 
 

ARTICLE THIRTEEN
  
    IMMUNITY OF INCORPORATORS,
  STOCKHOLDERS, OFFICERS AND DIRECTORS    
    

        Section
13.1.    Indenture and Notes Solely Corporate Obligations.    No recourse for the payment of the principal or
Interest on any Note, or for any claim based thereon or otherwise in respect thereof, and no recourse under or upon any obligation, covenant or agreement of the Company in this Indenture or in any
supplemental indenture or in any Note, or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, employee, agent, officer, director or
subsidiary, as such, past, present or future, of the Company or of any successor corporation, either directly or through the Company or any successor corporation, whether by virtue of any
constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it
being expressly understood that all such liability is hereby expressly waived and released as a condition of, and as a consideration for, the execution of this Indenture and the issue of the Notes. 

 
 

ARTICLE FOURTEEN
  
    CONVERSION OF NOTES    
    

        Section
14.1.    Right to Convert.    Subject to and upon compliance with the provisions of this Indenture, the holder
of any Note shall have the right, at its option, at any time after the original issuance of the Notes hereunder through the close of business on the Business Day immediately prior to the final
maturity date of the Notes (except that, with respect to any Note or portion of a Note that shall be called for redemption, such right shall terminate, except as provided in Section 14.2,
Section 3.2 or Section 3.4, at the close of business on the second Business Day next preceding the date fixed for redemption of such Note or portion of a Note unless the Company shall
default in payment due upon redemption thereof) to convert the principal amount of any such Note, or any portion of such principal amount which is $1,000 or an integral multiple thereof, into that
number of fully paid and non-assessable shares of Common Stock (as such shares shall then be constituted) obtained by multiplying the principal amount of the Note or portion thereof
surrendered for conversion by the Conversion Rate in effect at such time, by surrender of the Note so to be converted in whole or in part in the manner provided, together with any required funds,
under the circumstances described in this 

41

 

Section 14.1
and in the manner provided in Section 14.2. The Notes shall be convertible only upon the occurrence of one of the following events: 

        (i)    on
or prior to May 15, 2019 during any calendar quarter commencing after June 30, 2004, if the Closing Sale Price exceeds 120% of the Conversion Price for
at least twenty (20) Trading Days in the thirty (30) consecutive Trading Day period ending on the last Trading Day of the immediately preceding calendar quarter (it being understood for
purposes of this Section 14.1(a)(i) that the Conversion Price in effect at the close of business on each of the thirty (30) consecutive Trading Days should be used); provided,
however, that if the foregoing test is met, the Notes will thereafter be convertible at any time at the option of the holder prior to the close of business on the Business Day immediately prior to the
maturity date of the Notes; 

        (ii)   after
May 15, 2019, if the Closing Sale Price exceeds 120% of the Conversion Price on the immediately preceding Trading Day;  provided, however, that if the
foregoing test is met, the Notes will thereafter be convertible at any
time at the option of the holder prior to the close of business on the Business Day immediately prior to the maturity date of the Notes; 

        (iii)  during
the five Business Day period immediately following any five (5) consecutive Trading Day period (the "Measurement Period") in which the Trading Price per
$1,000 principal amount of the Notes for each day of such Measurement Period was less than 98% of the product of the Closing Sale Price and the number of shares of Common Stock issuable upon
conversion of $1,000 principal amount of the Notes; provided that no conversion pursuant to this clause (iii) may be made after May 15, 2019, if on any Trading Day during the Measurement
Period, the Closing Sale Price is more than 100%, but less than 120% of the Conversion Price on such Trading Day; 

        (iv)  if
such Note has been called for redemption, at any time on or after the date the notice of redemption has been given until the close of business on the second Business
Day immediately preceding the redemption date; or 

        (v)   as
provided in Section (b) of this Section 14.1. 

        The
Trustee (or other conversion agent appointed by the Company) shall, on behalf of the Company, determine on each Trading Day during the time period specified in
Section 14.1(a)(i) and Section 14.1(a)(ii) whether the Notes shall be convertible as a result of the occurrence of an event specified in clause (i) or
(ii) above and, if the Notes shall be so convertible, the Trustee (or other conversion agent appointed by the Company) shall promptly deliver to the Company and the Trustee (if the Trustee is
not the conversion agent) written notice thereof. Whenever the Notes shall become convertible pursuant to this Section 14.1, the Company or, at the Company's request, the Trustee in the name
and at the expense of the Company, shall notify the holders of the event triggering such convertibility in the manner provided in Section 15.3. Any notice so given shall be conclusively
presumed to have been duly given, whether or not the holder receives such notice. 

        The
Trustee (or other conversion agent appointed by the Company) shall have no obligation to determine the Trading Price under this Section 14.1 unless the Company has requested
such a determination; and the Company shall have no obligation to make such request unless a holder provides it with reasonable evidence that the Trading Price per $1,000 principal amount of Notes
would be less than 98% of the product of the Closing Sale Price and the number of shares of Common Stock issuable upon conversion of $1,000 principal amount of Notes. If such evidence is provided, the
Company shall instruct the Trustee (or other conversion agent) to determine the Trading Price of the Notes beginning on the next Trading Day and on each successive Trading Day until the Trading Price
per $1,000 principal amount of Notes is greater than or equal to 98% of the product of the Closing Sale Price and the number of shares issuable upon conversion of $1,000 principal amount of the Notes;
provided that the Trustee shall be under no duty or obligation to make the calculations described in Section 14.1(a)(iii) hereof or to determine whether the Notes are convertible
pursuant to such section. For the avoidance of doubt, the Company shall make the calculations described in Section 14.1(a)(iii), using the Trading Price provided by the Trustee. 

42

 

        The
Trustee shall be entitled at its sole discretion to consult with the Company and to request the assistance of the Company in connection with the Trustee's duties and obligations
pursuant to Section 14.1(a)(i), Section 14.1(a)(ii), and Section 14.1(a)(iii) hereof (including without limitation the calculation or determination of the Conversion Rate,
the Conversion Price, the Closing Sale Price and the Trading Price), and the Company agrees, if requested by the Trustee, to cooperate with, and provide assistance to, the Trustee in carrying out its
duties under this Section 14.1; provided that nothing herein shall be construed to relieve the Trustee of its duties pursuant to Section 14.1(a)(i), Section 14.1(a)(ii), and
Section 14.1(a)(iii) hereof. 

        (b)   In
addition, if: 

        (i)    (A)
the Company distributes to all holders of its Common Stock rights or warrants entitling them (for a period expiring within 45 days of the record date for the
determination of the stockholders entitled to receive such distribution) to subscribe for or purchase shares of Common Stock, at a price per share less than the average of the Closing Sale Price for
the ten (10) Trading Days immediately preceding, but not including, the date such distribution is first publicly announced by the Company, or (B) the Company distributes to all holders
of its Common Stock, assets, debt securities or rights to purchase its securities, where the Fair Market Value of such distribution per share of Common Stock exceeds 5% of the Closing Sale Price on
the Trading Day immediately preceding the date such distribution is first publicly announced by the Company, then, in either case, the Notes may be surrendered for conversion at any time on and after
the date that the Company gives notice to the holders of such distribution, which shall be not less than 20 days prior to the Ex-Dividend Time for such distribution, until the
earlier of the close of business on the Business Day immediately preceding, but not including, the Ex-Dividend Time or the date the Company publicly announces that such distribution will
not take place; provided that if the holders of Notes will otherwise participate in such distribution without conversion, holders of Notes will not have the ability to convert pursuant to this
Section 14.1(b); or 

        (ii)   the
Company consolidates with or merges with or into another Person or is a party to a binding share exchange or conveys, transfers, sells, leases or otherwise disposes
of all or substantially all of its assets in each case pursuant to which the Company's Common Stock is converted into cash, securities or other property, then the Notes may be surrendered for
conversion at any time from and after the date fifteen (15) days prior to the anticipated effective date of the transaction and ending on and including the date fifteen (15) days after
the consummation of the transaction. If such transaction constitutes a Designated Event, the Notes may be surrendered for conversion until the corresponding Designated Event Purchase Date. In such an
event, a holder of Notes may elect to exercise its option to require the Company to repurchase all or a portion of such holder's Notes. The Board of Directors shall determine the anticipated effective
date of the transaction, and such determination shall be conclusive and binding on the holders and shall be publicly announced by the Company and posted on its web site not later than two Business
Days prior to such 15th day. If Notes are not surrendered pursuant to this paragraph for conversion, on the date that is 16 days from the effective date of the transaction, the right to convert
the Notes into Common Stock will convert into a right to convert the Notes into the kind and amount of cash, securities and other property that a Noteholder would have received if such holder had
converted such holder's Notes immediately prior to the transaction. 

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

        (c)   A
Note in respect of which a holder is electing to exercise its option to require the Company to repurchase such holder's Notes upon a Designated Event pursuant to
Section 3.5, or at the option of the holder pursuant to Section 3.6, may be converted only if such holder withdraws its election in 

43

 

accordance
with Section 3.5(c) or Section 3.8, respectively. A holder of Notes is not entitled to any rights of a holder of Common Stock until such holder has converted his Notes to
Common Stock, and only to the extent such Notes are deemed to have been converted to Common Stock under this Article Fourteen. 

        Section
14.2.    Exercise of Conversion Privilege; Issuance of Common Stock On Conversion; No Adjustment for Interest or
Dividends.    In order to exercise the conversion privilege with respect to any Note in certificated form, the holder of any such Note to be converted in whole or in
part shall surrender such Note, duly endorsed, at an office or agency maintained by the Company pursuant to Section 4.2, accompanied by the funds, if any, required by the penultimate paragraph
of this Section 14.2, and shall give written notice of conversion in the form provided on the Notes (or such other notice which is acceptable to the Company) to the office or agency that the
holder elects to convert such Note or the portion thereof specified in said notice. Such notice shall also state the name or names (with address or addresses) in which the certificate or certificates
for shares of Common Stock which shall be issuable on such conversion shall be issued, and shall be accompanied by transfer taxes, if required pursuant to Section 14.7. Each such Note
surrendered for conversion shall, unless the shares of Common Stock issuable on conversion are to be issued in the same name as the registration of such Note, be duly endorsed by, or be accompanied by
instruments of transfer in form satisfactory to the Company duly executed by, the holder or his duly authorized attorney. 

        In
order to exercise the conversion privilege with respect to any interest in a Global Note, the beneficial holder must complete, or cause to be completed, the appropriate instruction
form for conversion pursuant to the Depositary's book-entry conversion program, deliver, or cause to be delivered, by book-entry delivery an interest in such Global Note,
furnish appropriate endorsements and transfer documents if required by the Company or the Trustee or conversion agent, and pay the funds, if any, required by this Section 14.2 and any transfer
taxes if required pursuant to Section 14.7. 

        As
promptly as practicable after satisfaction of the requirements for conversion set forth above, subject to compliance with any restrictions on transfer if shares of Common Stock
issuable on conversion are to be issued in a name other than that of the Noteholder (as if such transfer were a transfer of the Note or Notes (or portion thereof) so converted), the Company shall
issue and shall deliver to such
Noteholder at the office or agency maintained by the Company for such purpose pursuant to Section 4.2, a certificate or certificates for the number of full shares of Common Stock issuable upon
the conversion of such Note or portion thereof as determined by the Company in accordance with the provisions of this Article Fourteen and a check or cash in respect of any fractional interest in
respect of a share of Common Stock arising upon such conversion, calculated by the Company as provided in Section 14.3. In case any Note of a denomination greater than $1,000 shall be
surrendered for partial conversion, and subject to Section 2.3, the Company shall execute and the Trustee shall authenticate and deliver to the holder of the Note so surrendered, without charge
to him, a new Note or Notes in authorized denominations in an aggregate principal amount equal to the unconverted portion of the surrendered Note. 

        Each
conversion shall be deemed to have been effected as to any such Note (or portion thereof) on the date on which the requirements set forth above in this Section 14.2 have been
satisfied as to such Note (or portion thereof), and the Person in whose name any certificate or certificates for shares of Common Stock shall be issuable upon such conversion shall be deemed to have
become on said date the holder of record of the shares of Common Stock represented thereby; provided that any such surrender on any date when the stock transfer books of the Company shall be closed
shall constitute the Person in whose name the certificates are to be issued as the record holder thereof for all purposes on the next succeeding day on which such stock transfer books are open, but
such conversion shall be at the Conversion Rate in effect on the date upon which such Note shall be surrendered. 

        Any
Note or portion thereof surrendered for conversion during the period from the close of business on the record date for any interest payment date to the close of business on the
corresponding 

44

 

interest
payment date shall be accompanied by payment, in immediately available funds or other funds acceptable to the Company, of an amount equal to the Interest otherwise payable on such interest
payment date on the principal amount being converted; provided that no such payment need be made (1) if the Company has specified a redemption date that is after a record date and on or prior
to the next interest payment date, (2) if the Company has specified a Designed Event Repurchase Date that is after a record date and on or prior to the next interest payment date or
(3) to the extent of any overdue Interest, if any overdue Interest exists at the time of conversion with respect to such Note. Except as provided above in this Section 14.2, no payment
or other adjustment shall be made for Interest accrued on any Note converted or for dividends on any shares issued upon the conversion of such Note as provided in this Article Fourteen. 

        Upon
the conversion of an interest in a Global Note, the Trustee (or other conversion agent appointed by the Company), or the Custodian at the direction of the Trustee (or other
conversion agent appointed by the Company), shall make a notation on such Global Note as to the reduction in the principal amount represented thereby. The Company shall notify the Trustee in writing
of any conversions of Notes effected through any conversion agent other than the Trustee. 

        Section
14.3.    Cash Payments in Lieu of Fractional Shares.    No fractional shares of Common Stock or scrip
representing fractional shares shall be issued upon conversion of Notes. If more than one Note shall be surrendered for conversion at one time by the same holder, the number of full shares that shall
be issuable upon conversion shall be computed on the basis of the aggregate principal amount of the Notes (or specified portions thereof to the extent permitted hereby) so surrendered. If any
fractional share of stock would be issuable upon the conversion of any Note or Notes, the Company shall make an adjustment and payment therefor in cash at the current market price thereof to the
holder of Notes. The current market price of a share of Common Stock shall be the Closing Sale Price on the last Trading Day immediately preceding the day on which the Notes (or specified portions
thereof) are deemed to have been converted. 

        Section
14.4.    Conversion Rate.    Each $1,000 principal amount of the Notes shall be convertible into the number of
share of Common Stock specified in the form of Note (herein called the "Conversion Rate") attached as Exhibit A hereto, subject to adjustment as provided in this Article Fourteen. 

        Section
14.5.    Adjustment of Conversion Rate.    The Conversion Rate shall be adjusted from time to time by the
Company as follows: 

        (a)   In
case the Company shall hereafter pay a dividend or make a distribution to all holders of the outstanding Common Stock in shares of Common Stock, the Conversion Rate
shall be increased so that the same shall equal the rate determined by multiplying the Conversion Rate in effect at the opening of business on the date following the Record Date for such dividend or
distribution by a fraction, the numerator of which shall be the sum of the number of shares of Common Stock outstanding at the close of business on such Record Date plus the total number of shares of
Common Stock constituting such dividend or other distribution and the denominator of which shall be the number of shares of Common Stock outstanding at the close of business on such Record Date, such
increase to become effective immediately after the opening of business on the day following such Record Date. If any dividend or distribution of the type described in this Section 14.5(a) is
declared but not so paid or made, the Conversion Rate shall again be adjusted to the Conversion Rate that would then be in effect if such dividend or distribution had not been declared. 

        (b)   In
case the Company shall issue rights or warrants to all holders of its outstanding shares of Common Stock entitling them (for a period expiring within
forty-five (45) days after the Record Date for the issuance of such rights or warrants) to subscribe for or purchase shares of Common Stock at a price per share less than the
average of the Closing Sale Prices of the Common Stock for the ten (10) Trading Days immediately preceding the date such distribution is first publicly announced, the Conversion Rate shall be
increased so that the same shall equal the rate determined by multiplying the 

45

 

Conversion
Rate in effect immediately prior to such Record Date by a fraction, the numerator of which shall be the number of shares of Common Stock outstanding at the close of business on such Record
Date plus the total number of additional shares of Common Stock offered for subscription or purchase, and the denominator of which shall be the number of shares of Common Stock outstanding at the
close of business on such Record Date plus the number of shares of Common Stock that the aggregate offering price of the total number of shares of Common Stock so offered would purchase at a price
equal to the average of the Closing Sale Prices of the Common Stock for the ten (10) Trading Days immediately preceding the date such distribution is first publicly announced by the Company.
Such adjustment shall be successively made whenever any such rights or warrants are issued, and shall become effective immediately after the opening of business on the day following the Record Date
for the issuance of such rights or warrants. To the extent that shares of Common Stock are not delivered after the expiration of such rights or warrants, the Conversion Rate shall be readjusted to the
Conversion Rate that would then be in effect had the adjustments made upon the issuance of such rights or warrants been made on the basis of delivery of only the number of shares of Common Stock
actually delivered. In the event that such rights or warrants are not so issued, the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in effect if such Record Date
had not been fixed. In determining whether any rights or warrants entitle the holders to subscribe for or purchase shares of Common Stock at a price less than the average of the Closing Sale Prices of
the Common Stock for the ten (10) Trading Days immediately preceding the date such distribution is first publicly announced by the Company, and in determining the aggregate offering price of
such shares of Common Stock, there shall be taken into account any consideration received by the Company for such rights or warrants and any amount payable on exercise or conversion thereof, the value
of such consideration, if other than cash, to be determined by the Board of Directors. 

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

        (d)   In
case the Company shall, by dividend or otherwise, distribute to all holders of its Common Stock shares of any class of capital stock of the Company (other than any
dividends or distributions to which Section 14.5(a) applies) or evidences of its indebtedness or assets (including securities, but excluding any rights or warrants referred to in
Section 14.5(b), and excluding any dividend or distribution (x) paid exclusively in cash or (y) referred to in Section 14.5(a) (any of the foregoing hereinafter in this
Section 14.5(d) called the "Securities")), then, in each such case (unless the Company elects to reserve such Securities for distribution to the Noteholders upon the conversion of the Notes so
that any such holder converting Notes will receive upon such conversion, in addition to the shares of Common Stock to which such holder is entitled, the amount and kind of such Securities which such
holder would have received if such holder had converted its Notes into Common Stock immediately prior to the Record Date for such distribution of the Securities)), the Conversion Rate shall be
increased so that the same shall be equal to the rate determined by multiplying the Conversion Rate in effect on the Record Date with respect to such distribution by a fraction, the numerator of which
shall be the Current Market Price on such Record Date and the denominator of which shall be the Current Market Price on such Record Date less the Fair Market Value (as determined by the Board of
Directors, whose determination shall be conclusive, and described in a resolution of the Board of Directors) on such Record Date of the portion of the Securities so distributed applicable to one share
of Common Stock, such adjustment to become effective immediately prior to the opening of business on the day following such Record Date; provided, however, that in the event the then Fair 

46

 

Market
Value (as so determined) of the portion of the Securities so distributed applicable to one share of Common Stock is equal to or greater than the Current Market Price on the Record Date with
respect to such distribution, in lieu of the foregoing adjustment, adequate provision shall be made so that each Noteholder shall have the right to receive upon conversion the amount of Securities
such holder would have received had such holder converted each Note on the Record Date with respect to such distribution. In the event that such dividend or distribution is not so paid or made, the
Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in effect if such dividend or distribution had not been declared. If the Board of Directors determines the Fair
Market Value of any distribution for purposes of this Section 14.5(d) by reference to the actual or when issued trading market for any securities, it must in doing so consider the prices in
such market over the same period used in computing the Current Market Price. Notwithstanding the foregoing, if the Securities distributed by the Company to all holders of its Common Stock consist of
capital stock of, or similar equity interests in, a Subsidiary or other business unit of the Company, the Conversion Rate shall be increased so that the same shall be equal to the rate determined by
multiplying the Conversion Rate in effect on the Record Date with respect to such distribution by a fraction, (i) the numerator of which shall be the sum of (A) the average of the
Closing Sale Prices of the Common Stock for the ten (10) Trading Days commencing on and including the fifth Trading Day after the date on which "ex-dividend trading" commences for
such dividend or distribution on The Nasdaq National Market or such other national or regional exchange or market which such Securities are then listed or quoted (the "Ex-Dividend Date")
plus (B) the Fair Market Value of the Securities distributed in respect of each share of Common Stock for which this Section 14.5(d) applies and shall equal the number of Securities
distributed in respect of each share of Common Stock multiplied by the average of the closing sale prices of those Securities distributed for the ten (10) Trading Days commencing on and
including the fifth Trading Day after the Ex-Dividend Date; and (ii) the denominator of which shall be the average of the Closing Sale Prices of the Common Stock for the ten
(10) Trading Days commencing on and including the fifth Trading Day after the Ex-Dividend Date, such adjustment to become effective immediately prior to the opening of business on
the day following such Record Date; provided that the Company may in lieu of the foregoing adjustment make adequate provision so that each Noteholder shall have the right to receive upon conversion
the amount of Securities such holder would have
received had such holder converted each Note on the Record Date with respect to 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 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 14.5 (and no adjustment to the Conversion Rate under this Section 14.5 will be required) until the occurrence of the earliest Trigger Event, whereupon such rights 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 14.5(d). If any such right or warrant,
including any such existing rights or warrants distributed prior to the date of this Indenture, are subject to events, upon the occurrence of which such rights or warrants become exercisable to
purchase different securities, evidences of indebtedness or other assets, then the date of the occurrence of any and each such event shall be deemed to be the date of distribution and Record Date with
respect to new rights or warrants with such rights (and a termination or expiration of the existing rights or warrants without exercise by any of the holders thereof). In addition, in the event of any
distribution (or deemed distribution) of rights or warrants, or any Trigger Event or other event (of the type described in the preceding sentence) with respect thereto that was counted for purposes of
calculating a distribution amount for which an adjustment to the Conversion Rate under this Section 14.5 was made, (1) in the case of any such rights or warrants that shall all have been
redeemed or repurchased without exercise by any holders thereof, the Conversion Rate shall be readjusted upon such final redemption or repurchase to give effect to such distribution or Trigger 

47

 

Event,
as the case may be, as though it were a cash distribution, equal to the per share redemption or repurchase price received by a holder or holders of Common Stock with respect to such rights or
warrants (assuming such holder had retained such rights or warrants), made to all holders of Common Stock as of the date of such redemption or repurchase, and (2) in the case of such rights or
warrants that shall have expired or been terminated without exercise by any holders thereof, the Conversion Rate shall be readjusted as if such rights and warrants had not been issued. 

        No
adjustment of the Conversion Rate shall be made pursuant to this Section 14.5(d) in respect of rights or warrants distributed or deemed distributed on any Trigger Event to the
extent that such rights or warrants are actually distributed, or reserved by the Company for distribution to holders of Notes upon conversion by such holders of Notes to Common Stock. 

        For
purposes of this Section 14.5(d) and Sections 14.5(a) and (b), any dividend or distribution to which this Section 14.5(d) is applicable that also includes shares of
Common Stock, or rights or warrants to subscribe for or purchase shares of Common Stock (or both), shall be deemed instead to be (1) a dividend or distribution of the evidences of indebtedness,
assets or shares of capital stock other than such shares of Common Stock or rights or warrants (and any Conversion Rate adjustment required by this Section 14.5(d) with respect to such dividend
or distribution shall then be made) immediately followed by (2) a dividend or distribution of such shares of Common Stock or such rights or warrants (and any further Conversion Rate adjustment
required by Sections 14.5(a) and (b) with respect to such
dividend or distribution shall then be made), except (A) the Record Date of such dividend or distribution shall be substituted as "the date fixed for the determination of stockholders entitled
to receive such dividend or other distribution", "the date fixed for the determination of stockholders entitled to receive such rights or warrants" and "the date fixed for such determination" within
the meaning of Sections 14.5(a) and (b), and (B) any shares of Common Stock included in such dividend or distribution shall not be deemed "outstanding at the close of business on the date fixed
for such determination" within the meaning of Section 14.5(a). 

        (e)   In
case the Company shall, by dividend or otherwise, distribute to all holders of its Common Stock cash (excluding any dividend or distribution in connection with the
liquidation, dissolution or winding up of the Company, whether voluntary or involuntary), then, in such case, the Conversion Rate shall be increased so that the same shall equal the rate determined by
multiplying the Conversion Rate in effect immediately prior to the close of business on the Record Date for such dividend or distribution by a fraction, the numerator of which shall be the Current
Market Price on such Record Date, and the denominator of which shall be the Current Market Price on such Record Date less the amount of cash so distributed applicable to one share of Common Stock,
such adjustment to be effective immediately prior to the opening of business on the day following such Record Date; provided,  however, that in the event
the portion of the cash so distributed applicable to one share of Common Stock is equal to or greater than the Current Market
Price on such Record Date, in lieu of the foregoing adjustment, adequate provision shall be made so that each Noteholder shall have the right to receive upon conversion the amount of cash such holder
would have received had such holder converted each Note on such Record Date. In the event that such dividend or distribution is not so paid or made, the Conversion Rate shall again be adjusted to be
the Conversion Rate that would then be in effect if such dividend or distribution had not been declared. 

48

  

        (f)    In case a tender or exchange offer made by the Company or any Subsidiary for all or any portion of the Common Stock shall expire and such tender or exchange offer (as
amended upon the expiration thereof) shall require the payment to stockholders of consideration per share of Common Stock having a Fair Market Value (as determined by the Board of Directors, whose
determination shall be conclusive and described in a resolution of the Board of Directors) that as of the last time (the "Expiration Time") tenders or exchanges may be made pursuant to such tender or
exchange offer (as it may be amended) exceeds the Closing Sale Price of a share of Common Stock on the Trading Day next succeeding the Expiration Time, the Conversion Rate shall be increased so that
the same shall equal the rate determined by multiplying the Conversion Rate in effect immediately prior to the Expiration Time by a fraction the numerator of which shall be the sum of (x) the
Fair Market Value (determined as aforesaid) of the aggregate consideration payable to stockholders based on the acceptance (up to any maximum specified in the terms of the tender or exchange offer) of
all shares validly tendered or exchanged and not withdrawn as of the Expiration Time (the shares deemed so accepted, up to any such maximum, being referred to as the "Purchased Shares") and
(y) the product of the number of shares of Common Stock outstanding (less any Purchased Shares) at the Expiration Time and the Closing Sale Price of a share of Common Stock on the Trading Day
next succeeding the Expiration Time and the denominator of which shall be the number of shares of Common Stock outstanding (including any Purchased Shares) at the Expiration Time multiplied by the
Closing Sale Price of a share of Common Stock on the Trading Day next succeeding the Expiration Time, such adjustment to become effective immediately prior to the opening of business on the Trading
Day following the Expiration Time. In the event that the Company is obligated to purchase shares pursuant to any such tender or exchange offer, but the Company is permanently prevented by applicable
law from effecting any such purchases or all such purchases are rescinded, the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in effect if such tender or exchange
offer had not been made. 

        (g)   For
purposes of this Section 14.5, the following terms shall have the meaning indicated: 

        (1)   "Closing
Sale Price" of the shares of Common Stock on any date means the closing sale price per share (or, if no closing sale price is reported, the average of the
closing bid and ask prices or, if more than one in either case, the average of the average closing bid and the average closing ask prices) on such date as reported in composite transactions for the
principal United States securities exchange on which shares of Common Stock are traded or, if the shares of Common Stock are not listed on a United States national or regional securities exchange, as
reported by the Nasdaq System or by the National Quotation Bureau Incorporated. In the absence of such quotation or reporting, the Company shall be entitled to determine the Closing Sale Price on the
basis it considers appropriate and such determination shall be conclusive. 

        (2)   "Current
Market Price" shall mean the average of the daily Closing Sale Prices per share of Common Stock for the ten consecutive Trading Days ending on the earlier of
such date of
determination and the day before the "ex" date with respect to the issuance, distribution, subdivision or combination requiring such computation immediately prior to the date in question. For purposes
of this paragraph, the term "ex" date, (1) when used with respect to any issuance or distribution, means the first date on which the Common Stock trades, regular way, on the relevant exchange
or in the relevant market from which the Closing Sale Price was obtained without the right to receive such issuance or distribution, and (2) when used with respect to any subdivision or
combination of shares of Common Stock, means the first date on which the Common Stock trades, regular way, on such exchange or in such market after the time at which such subdivision or combination
becomes effective. 

        If
another issuance, distribution, subdivision or combination to which Section 14.5 applies occurs during the period applicable for calculating "Current Market Price" pursuant to
the definition in the preceding paragraph, "Current Market Price" shall be calculated for such period in a manner 

49

 

determined
by the Board of Directors to reflect the impact of such issuance, distribution, subdivision or combination on the Closing Sale Price of the Common Stock during such period. 

        (3)   "Fair
Market Value" shall mean the amount which a willing buyer would pay a willing seller in an arm's-length transaction. 

        (4)   "Record
Date" shall mean, with respect to any dividend, distribution or other transaction or event in which the holders of Common Stock have the right to receive any
cash, securities or other property or in which the 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). 

        (5)   "Trading
Day" shall mean a day during which trading in the Common Stock occurs (x) on The Nasdaq National Market, or (y) if the Common Stock is not quoted
on The Nasdaq National Market, on the principal national or regional securities exchange on which the Common Stock is then listed or (z) if the Common Stock is not listed on a national or
regional securities exchange, on the principal market on which the Common Stock is then traded. 

        (h)   The
Company may make such increases in the Conversion Rate, in addition to those required by Sections 14.5(a), (b), (c), (d), (e) or (f) as the Board of
Directors considers to be advisable to avoid or diminish any income tax to holders of Common Stock or rights to purchase Common Stock resulting from any dividend or distribution of stock (or rights to
acquire stock) or from any event treated as such for income tax purposes. 

        To
the extent permitted by applicable law and Nasdaq Marketplace rules, the Company from time to time may increase the Conversion Rate by any amount for any period of time if the Board
of Directors shall have made a determination that such reduction would be in the best interests of the Company, which determination shall be conclusive. 

        (i)    No
adjustment in the Conversion Rate shall be required unless such adjustment would require an increase or decrease of at least one percent (1%) in such rate;  provided, however, that any adjustments that by reason of this Section 14.5(i) are not
required to be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Article Fourteen shall be made by the Company and shall be made to the
nearest cent or to the nearest one-hundredth (1/100) of a share, as the case may be. No adjustment need be made for rights to purchase Common Stock pursuant to a Company plan for
reinvestment of dividends or interest. To the extent the Notes become convertible into cash, assets, property or securities (other than capital stock of the Company), no adjustment need be made
thereafter as to the cash, assets, property or such securities. Interest will not accrue on any cash into which the Notes are convertible. 

        (j)    Whenever
the Conversion Rate is adjusted as herein provided, the Company shall promptly file with the Trustee and any conversion agent other than the Trustee an
Officers' Certificate setting forth the Conversion Rate after such adjustment and setting forth a brief statement of the facts requiring such adjustment. Unless and until a Responsible Officer of the
Trustee shall have received such Officers' Certificate, the Trustee shall not be deemed to have knowledge of any adjustment of the Conversion Rate and may assume that the last Conversion Rate of which
it has knowledge is still in effect. Promptly after delivery of such certificate, the Company shall prepare a notice of such adjustment of the Conversion Rate setting forth the adjusted Conversion
Rate and the date on which each adjustment becomes effective and shall mail such notice of such adjustment of the Conversion Rate to the holder of each Note at his last address appearing on the Note
register provided for in Section 2.5 of this Indenture, within twenty (20) days after execution thereof. Failure to deliver such notice shall not affect the legality or validity of any
such adjustment. 

50

 

        (k)   In
any case in which this Section 14.5 provides that an adjustment shall become effective immediately after (1) a Record Date for an event, (2) the
Record Date for a dividend or distribution pursuant to Section 14.5(a), (3) the Record Date for the issuance of rights or warrants pursuant to Section 14.5(b) or (4) the
Expiration Time for any tender or exchange offer pursuant to Section 14.5(f) (each a "Determination Date"), the Company may elect to defer until the occurrence of the relevant Adjustment Event
(as hereinafter defined) (x) issuing to the holder of any Note converted after such Determination Date and before the occurrence of such Adjustment Event, the additional shares of Common Stock
or other securities issuable upon such conversion by reason of the adjustment required by such Adjustment Event over and above the Common Stock issuable upon such conversion before giving effect to
such adjustment and (y) paying to such holder any amount in cash in lieu of any fraction pursuant to Section 14.3. For purposes of this Section 14.5(k), the term "Adjustment
Event" shall mean: 

        (a)   in
any case referred to in clause (1) hereof, the occurrence of such event, 

        (b)   in
any case referred to in clause (2) hereof, the date any such dividend or distribution is paid or made, 

        (c)   in
any case referred to in clause (3) hereof, the date of expiration of such rights or warrants, and 

        (d)   in
any case referred to in clause (4) hereof, the date a sale or exchange of Common Stock pursuant to such tender or exchange offer is consummated and becomes
irrevocable. 

        (1)   For
purposes of this Section 14.5, the number of shares of Common Stock at any time outstanding shall not include shares held in the treasury of the Company but
shall include shares issuable in respect of scrip certificates issued in lieu of fractions of shares of Common Stock. The Company will not pay any dividend or make any distribution on shares of Common
Stock held in the treasury of the Company. 

        Section
14.6.    Effect of Reclassification, Consolidation, Merger or Sale.    If any of the following events occur,
namely (i) any reclassification or change of the outstanding shares of Common Stock (other than a subdivision or combination to which Section 14.5(c) applies), (ii) any
consolidation, merger or combination of the Company with another Person as a result of which holders of Common Stock shall be entitled to receive stock, other securities or other property or assets
(including cash) with respect to or in exchange for such Common Stock, or (iii) any sale or conveyance of all or substantially all of the properties and assets of the Company to any other
Person as a result of which holders of Common Stock shall be entitled to receive stock, other securities or other property or assets (including cash) with respect to or in exchange for such Common
Stock, then the Company or the successor or purchasing Person, as the case may be, shall execute with the Trustee a supplemental indenture (which shall comply with the Trust Indenture Act as in force
at the date of execution of such supplemental indenture) providing that each Note shall be convertible into the kind and amount of shares of stock, other securities or other property or assets
(including cash) receivable upon such reclassification, change, consolidation, merger, combination, sale or conveyance by a holder of a number of shares of Common Stock issuable upon conversion of
such Notes (assuming, for such purposes, a sufficient number of authorized shares of Common Stock are available to convert all such Notes) immediately prior to such reclassification, change,
consolidation, merger, combination, sale or conveyance assuming such holder of Common Stock did not exercise his rights of election, if any, as to the kind or amount of stock, other securities or
other property or assets (including cash) receivable upon such reclassification, change, consolidation, merger, combination, sale or conveyance (provided that, if the kind or amount of stock, other
securities or other property or assets (including cash) receivable upon such reclassification, change, consolidation, merger, combination, sale or conveyance is not the same for each share of Common
Stock in respect of which such rights of election shall not have been exercised ("Non-Electing Share"), then for the purposes of this Section 14.6 the kind and amount of stock,
other 

51

 

securities
or other property or assets (including cash) receivable upon such reclassification, change, consolidation, merger, combination, sale or conveyance for each Non-Electing Share
shall be deemed to be the kind and amount so receivable per share by a plurality of the Non-Electing Shares). Such supplemental indenture shall provide for adjustments which shall be as
nearly equivalent as may be practicable to the adjustments provided for in this Article Fourteen. 

        The
Company shall cause notice of the execution of such supplemental indenture to be mailed to each holder of Notes, at its address appearing on the Note register provided for in
Section 2.5 of this Indenture, within twenty (20) days after execution thereof. Failure to deliver such notice shall not affect the legality or validity of such supplemental indenture. 

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

        If
this Section 14.6 applies to any event or occurrence, Section 14.5 shall not apply. 

        Section
14.7.    Taxes on Shares Issued.    The issuance of stock certificates on conversions of Notes shall be made
without charge to the converting Noteholder for any tax in respect of the issue thereof. The Company shall not, however, be required to pay any such tax which may be payable in respect of any transfer
involved in the issue and delivery of stock in any name other than that of the holder of any Note converted, and the Company shall not be required to issue or deliver any such stock certificate unless
and until the Person or Persons requesting the issue thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the Company that such tax has been
paid. 

        Section
14.8.    Reservation of Shares; Shares to be Fully Paid; Compliance with Governmental Requirements; Listing of Common
Stock.    The Company shall provide, free from preemptive rights, out of its authorized but unissued shares or shares held in treasury, sufficient shares of Common
Stock to provide for the conversion of the Notes from time to time as such Notes are presented for conversion. 

        Before
taking any action which would cause an adjustment increasing the Conversion Rate to an amount that would cause the Conversion Price to be reduced below the then par value, if any,
of the shares of Common Stock issuable upon conversion of the Notes, the Company will take all corporate action which may, in the opinion of its counsel, be necessary in order that the Company may
validly and legally issue shares of such Common Stock at such adjusted Conversion Rate. 

        The
Company covenants that all shares of Common Stock which may be issued upon conversion of Notes will upon issue be fully paid and non-assessable by the Company and free
from all taxes, liens and charges with respect to the issue thereof. 

        The
Company covenants that, if any shares of Common Stock to be provided for the purpose of conversion of Notes hereunder require registration with or approval of any governmental
authority under any federal or state law before such shares may be validly issued upon conversion, the Company will in good faith and as expeditiously as possible, to the extent then permitted by the
rules and interpretations of the Commission (or any successor thereto), endeavor to secure such registration or approval, as the case may be. 

        The
Company further covenants that, if at any time the Common Stock shall be listed on the Nasdaq National Market or any other national securities exchange or automated quotation system,
the Company will, if permitted by the rules of such exchange or automated quotation system, list and keep listed, so long as the Common Stock shall be so listed on such exchange or automated quotation
system, all Common Stock issuable upon conversion of the Notes; provided, however, that, if the rules of
such exchange or automated quotation system permit the Company to defer the listing of such Common Stock until the first conversion of the Notes into Common Stock in accordance with the provisions of
this Indenture, the Company covenants to list such Common Stock issuable upon 

52

 

conversion
of the Notes in accordance with the requirements of such exchange or automated quotation system at such time. 

        Section
14.9.    Responsibility of Trustee.    The Trustee and any other conversion agent shall not at any time be
under any duty or responsibility to any holder of Notes to determine the Conversion Rate or whether any facts exist which may require any adjustment of the Conversion Rate, or with respect to the
nature or extent or calculation of any such adjustment when made, or with respect to the method employed, or herein or in any supplemental indenture provided to be employed, in making the same. The
Trustee and any other conversion agent shall not be accountable with respect to the validity or value (or the kind or amount) of any shares of Common Stock, or of any securities or property, which may
at any time be issued or delivered upon the conversion of any Note; and the Trustee and any other conversion agent make no representations with respect thereto. Neither the Trustee nor any conversion
agent shall be responsible for any failure of the Company to issue, transfer or deliver any shares of Common Stock or stock certificates or other securities or property or cash upon the surrender of
any Note for the purpose of conversion or to comply with any of the duties, responsibilities or covenants of the Company contained in this Article Fourteen. Without limiting the generality of the
foregoing, neither the Trustee nor any conversion agent shall be under any responsibility to determine the correctness of any provisions contained in any supplemental indenture entered into pursuant
to Section 14.6 relating either to the kind or amount of shares of stock or securities or property (including cash) receivable by Noteholders upon the conversion of their Notes after any event
referred to in such Section 14.6 or to any adjustment to be made with respect thereto, but, subject to the provisions of Section 7.1, may accept as conclusive evidence of the correctness
of any such provisions, and shall be protected in relying upon, the Officers' Certificate (which the Company shall be obligated to file with the Trustee prior to the execution of any such supplemental
indenture) with respect thereto. 

        Section
14.10.    Notice to Holders Prior to Certain Actions.    In case: 

        (a)   the
Company shall declare a dividend (or any other distribution) on its Common Stock that would require an adjustment in the Conversion Rate pursuant to
Section 14.5; or 

        (b)   the
Company shall authorize the granting to the holders of all or substantially all of its Common Stock of rights or warrants to subscribe for or purchase any share of
any class or any other rights or warrants; or 

        (c)   of
any reclassification or reorganization of the Common Stock of the Company (other than a subdivision or combination of its outstanding Common Stock, or a change in par
value, or from par value to no par value, or from no par value to par value), or of any consolidation or merger to which the Company is a party and for which approval of any stockholders of the
Company is required, or of the sale or transfer of all or substantially all of the assets of the Company or any Significant Subsidiary; or 

        (d)   of
the voluntary or involuntary dissolution, liquidation or winding up of the Company or any Significant Subsidiary; 

        the
Company shall cause to be filed with the Trustee and to be mailed to each holder of Notes at his address appearing on the Note register provided for in Section 2.5 of this
Indenture, as promptly as possible but in any event at least ten (10) days prior to the applicable date hereinafter specified, a notice stating (x) the date on which a record is to be
taken for the purpose of such dividend, distribution or rights or warrants, or, if a record is not to be taken, the date as of which the holders of Common Stock of record to be entitled to such
dividend, distribution or rights are to be determined, or (y) the date on which such reclassification, consolidation, merger, sale, transfer, dissolution, liquidation or winding up is expected
to become effective or occur, and the date as of which it is expected that holders of Common Stock of record shall be entitled to exchange their Common Stock for securities or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer, dissolution, 

53

 

liquidation
or winding up. Failure to give such notice, or any defect therein, shall not affect the legality or validity of such dividend, distribution, reclassification, consolidation, merger, sale,
transfer, dissolution, liquidation or winding up. 

        Section
14.11    Shareholder Rights Plans.    Each share of Common Stock issued upon conversion of Notes pursuant to
this Section 14 shall be entitled to receive the appropriate number of rights, if any, and the certificates representing the Common Stock issued upon such conversion shall bear such legends, if
any, in each case as may be provided by the terms of any shareholder rights plan adopted by the Company, as the same may be amended from time to time. If at the time of conversion, however, the rights
have separated from the shares of Common Stock in accordance with the provisions of the applicable shareholder rights agreement so that the holders of the Notes would not be entitled to receive any
rights in respect of Common Stock issuable upon conversion of the Notes, the conversion rate will be adjusted in accordance with Section 14.5(d) treating all rights previously issued as
Securities for purposes of such adjustment, subject to readjustment in the event of the expiration, termination or redemption of the rights. 

 
 

ARTICLE FIFTEEN
  
    MISCELLANEOUS PROVISIONS    
    

        Section
15.1.    Provisions Binding on Company's Successors.    All the covenants, stipulations, promises and
agreements by the Company contained in this Indenture shall bind its successors and assigns whether so expressed or not. 

        Section
15.2.    Official Acts by Successor Corporation.    Any act or proceeding by any provision of this Indenture
authorized or required to be done or performed by any board, committee or officer of the Company shall and may be done and performed with like force and effect by the like board, committee or officer
of any Person that shall at the time be the lawful sole successor of the Company. 

        Section
15.3.    Addresses for Notices, Etc.    Any notice or demand which by any provision of this Indenture is
required or permitted to be given or served by the Trustee or by the holders of Notes on the Company shall be deemed to have been sufficiently given or made, for all purposes, if given or served by
being deposited postage prepaid by registered or certified mail in a post office letter box addressed (until another address is filed by the Company with the Trustee) to ImClone Systems Incorporated,
180 Varick Street, 7th Floor, New York, New York 10014, Attention: Treasurer. Any notice, direction, request or demand hereunder to or upon the Trustee shall be deemed to have been
sufficiently given or made, for all purposes, if given or served by being deposited, postage prepaid, by registered or certified mail in a post office letter box addressed to the Corporate Trust
Office, which office is, at the date as of which this Indenture is dated, located at The Bank of New York, 101 Barclay Street, 21st Floor West, New York, New York, 10286, Attention:
Corporate Trust Trustee Administration. 

        The
Trustee, by notice to the Company, may designate additional or different addresses for subsequent notices or communications. 

        Any
notice or communication mailed to a Noteholder shall be mailed to him by first class mail, postage prepaid, at his address as it appears on the Note register and shall be
sufficiently given to him if so mailed within the time prescribed. 

        Failure
to mail a notice or communication to a Noteholder or any defect in it shall not affect its sufficiency with respect to other Noteholders. If a notice or communication is mailed
in the manner provided above, it is duly given, whether or not the addressee receives it. 

54

 

        Section
15.4.    Governing Law.    This Indenture and each Note shall be deemed to be a contract made under the laws
of the State of New York, and for all purposes shall be construed in accordance with the laws of the State of New York, without regard to the conflict of laws provisions thereof. 

        Section
15.5.    Evidence of Compliance with Conditions Precedent; Certificates to Trustee.    Upon any application or
demand by the Company to the Trustee to take any action under any of the provisions of this Indenture, the Company shall furnish to the Trustee an Officers' Certificate stating that all conditions
precedent, if any, provided for in this Indenture relating to the proposed action have been complied with, and an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions
precedent have been complied with. 

        Each
certificate or opinion provided for in this Indenture and delivered to the Trustee with respect to compliance with a condition or covenant provided for in this Indenture shall
include: (1) a statement that the person making such certificate or opinion has read such covenant or condition; (2) a brief statement as to the nature and scope of the examination or
investigation upon which the statement or opinion contained in such certificate or opinion is based; (3) a statement that, in the opinion of such person, he has made such examination or
investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and (4) a statement as to whether or not, in
the opinion of such person, such condition or covenant has been complied with. 

        Section
15.6.    Legal Holidays.    In any case in which the date of maturity of Interest on or principal of the Notes
or the date fixed for redemption of any Note will not be a Business Day, then payment of such Interest on or principal of the Notes need not be made on such date, but may be made on the next
succeeding Business Day with the same force and effect as if made on the date of maturity or the date fixed for redemption, and no Interest shall accrue for the period from and after such date. 

        Section
15.7.    Trust Indenture Act.    This Indenture is hereby made subject to, and shall be governed by, the
provisions of the Trust Indenture Act required to be part of and to govern indentures qualified under the Trust Indenture Act; provided,  however, that,
unless otherwise required by law, notwithstanding the foregoing, this Indenture and the Notes issued hereunder shall not be subject to
the provisions of subsections (a)(1), (a)(2), and (a)(3) of Section 314 of the Trust Indenture Act as now in effect or as hereafter amended or modified; provided
further that this Section 15.7 shall not require this Indenture or the Trustee to be qualified under the Trust Indenture Act prior to the time such qualification is in
fact required under the terms of the Trust Indenture Act, nor shall it constitute any admission or
acknowledgment by any party to the Indenture that any such qualification is required prior to the time such qualification is in fact required under the terms of the Trust Indenture Act. If any
provision hereof limits, qualifies or conflicts with another provision hereof which is required to be included in an indenture qualified under the Trust Indenture Act, such required provision shall
control. 

        Section
15.8.    No Security Interest Created.    Nothing in this Indenture or in the Notes, expressed or implied,
shall be construed to constitute a security interest under the Uniform Commercial Code or similar legislation, as now or hereafter enacted and in effect, in any jurisdiction in which property of the
Company or its subsidiaries is located. 

        Section
15.9.    Benefits of Indenture.    Nothing in this Indenture or in the Notes, express or implied, shall give
to any Person, other than the parties hereto, any paying agent, any authenticating agent, any Note registrar and their successors hereunder and the holders of Notes any benefit or any legal or
equitable right, remedy or claim under this Indenture. 

        Section
15.10.    Table of Contents, Headings, Etc.    The table of contents and the titles and headings of the
Articles and Sections of this Indenture have been inserted for convenience of reference only, are 

55

 

not
to be considered a part hereof, and shall in no way modify or restrict any of the terms or provisions hereof. 

        Section
15.11.    Authenticating Agent.    The Trustee may appoint an authenticating agent that shall be authorized to
act on its behalf, and subject to its direction, in the authentication and delivery of Notes in connection with the original issuance thereof and transfers and exchanges of Notes hereunder, including
under Sections 2.4, 2.5, 2.6, 2.7, 2.10, 3.3 and 3.5, as fully to all intents and purposes as though the authenticating agent had been expressly authorized by this Indenture and those Sections to
authenticate and deliver Notes. For all purposes of this Indenture, the authentication and delivery of Notes by the authenticating agent shall be deemed to be authentication and delivery of such Notes
"by the Trustee" and a certificate of authentication executed on behalf of the Trustee by an authenticating agent shall be deemed to satisfy any requirement hereunder or in the Notes for the Trustee's
certificate of authentication. Such authenticating agent shall at all times be a Person eligible to serve as trustee hereunder pursuant to Section 7.9. 

        Any
corporation into which any authenticating agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, consolidation or
conversion to which any authenticating agent shall be a party, or any corporation succeeding to all or substantially all the corporate trust business of any authenticating agent, shall be the
successor of the authenticating agent hereunder, if such successor corporation is otherwise eligible under this Section 15.11, without the execution or filing of any paper or any further act on
the part of the parties hereto or the authenticating agent or such successor corporation. 

        Any
authenticating agent may at any time resign by giving written notice of resignation to the Trustee and to the Company. The Trustee may at any time terminate the agency of any
authenticating agent by giving written notice of termination to such authenticating agent and to the Company. Upon receiving such a notice of resignation or upon such a termination, or in case at any
time any authenticating agent shall cease to be eligible under this Section, the Trustee shall either promptly appoint a successor authenticating agent or itself assume the duties and obligations of
the former authenticating agent under this Indenture and, upon such appointment of a successor authenticating agent, if made, shall give written notice of such appointment of a successor
authenticating agent to the Company and shall mail notice of such appointment of a successor authenticating agent to all holders of Notes as the names and addresses of such holders appear on the Note
register. 

        The
Company agrees to pay to the authenticating agent from time to time such reasonable compensation for its services as shall be agreed upon in writing between the Company and the
authenticating agent. 

        The
provisions of Sections 7.2, 7.3, 7.4, 8.3 and this Section 15.11 shall be applicable to any authenticating agent. 

        Section
15.12.    Execution in Counterparts.    This Indenture may be executed in any number of counterparts, each of
which shall be an original, but such counterparts shall together constitute but one and the same instrument. 

        Section
15.13.    Severability.    In case any provision in this Indenture or in the Notes shall be invalid, illegal
or unenforceable, then (to the extent permitted by law) the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

56

 

        The
Bank of New York hereby accepts the trusts in this Indenture declared and provided, upon the terms and conditions herein above set forth. 

        IN
WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed. 

	 	 	IMCLONE SYSTEMS INCORPORATED
	

 	
 	

By:	
 	

/s/  MICHAEL J. HOWERTON          

	 	 	 	 	Name:	Michael J. Howerton
	 	 	 	 	Title:	Acting Chief Financial Officer, Vice President, Finance and Business Development, Secretary
	

 	
 	

THE BANK OF NEW YORK,

as Trustee
	

 	
 	

By:	
 	

/s/  ROBERT A. MASSIMILLO          

	 	 	 	 	Name:	Robert A. Massimillo
	 	 	 	 	Title:	Vice President

57

 
 

EXHIBIT A    
    

        For Global Note only: UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK)
(THE "DEPOSITARY", WHICH TERM INCLUDES ANY SUCCESSOR DEPOSITARY FOR THE CERTIFICATES) TO IMCLONE SYSTEMS INCORPORATED (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 REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT HEREIN IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), 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. 

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

        THE
HOLDER OF THIS NOTE, BY ITS ACCEPTANCE HEREOF, AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH NOTE, PRIOR TO THE DATE (THE "RESALE RESTRICTION TERMINATION DATE") THAT IS 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 NOTE (OR ANY PREDECESSOR OF SUCH NOTE) ONLY (A) TO
THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER"
AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHICH NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A, (C) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, OR (D) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE RIGHTS OF THE COMPANY AND THE TRUSTEE PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (D) TO REQUIRE THE DELIVERY OF
AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND IN EACH OF THE FOREGOING CASES WHERE REGISTRATION OR TRANSFER OF THIS NOTE IS REQUIRED, A CERTIFICATE OF
TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS NOTE COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE
TRUSTEE. THIS LEGEND WILL BE REMOVED AFTER THE RESALE RESTRICTION TERMINATION DATE UPON THE REQUEST OF THE HOLDER AND THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATES AND/OR OTHER INFORMATION
SATISFACTORY TO THE COMPANY. 

 
IMCLONE SYSTEMS INCORPORATED

13/8% CONVERTIBLE NOTES DUE 2024  

Rule 144A CUSIP: 45245WAE9  

	No.	 	$

        ImClone Systems Incorporated, a corporation duly organized and validly existing under the laws of the State of Delaware (herein called the "Company", which term
includes any successor corporation under the Indenture referred to on the reverse hereof), for value received hereby promises to pay to            or its registered assigns, the principal
sum of
                        DOLLARS ($            ) on May 15, 2024,
at the office or agency of the Company maintained for that purpose in accordance with the terms of the Indenture, in such coin or
currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest, semi-annually on May 15
and November 15 of each year, commencing November 15, 2004, on said principal sum at said office or agency, in like coin or currency, at the rate per annum of 13/8%, from
May 15 or November 15, as the case
may be, next preceding the date of this Note to which interest has been paid or duly provided for, unless the date hereof is a date to which interest has been paid or duly provided for, in which case
from the date of this Note, or unless no interest has been paid or duly provided for on the Notes, in which case from May 7, 2004, until payment of said principal sum has been made or duly
provided for. Notwithstanding the foregoing, if the date hereof is after any May 1 or November 1, as the case may be, and before the following May 15 or November 15, this
Note shall bear interest from such May 15 or November 15; provided, however, that if the
Company shall default in the payment of interest due on such May 15 or November 15, then this Note shall bear interest from the next preceding May 15 or November 15 to
which interest has been paid or duly provided for or, if no interest has been paid or duly provided for on such Note, from May 7, 2004. Except as otherwise provided in the Indenture, the
interest payable on the Note pursuant to the Indenture on any May 15 or November 15 will be paid to the Person entitled thereto as it appears in the Note register at the close of
business on the record date, which shall be the May 1 or November 1 (whether or not a Business Day) next preceding such May 15 or November 15, as provided in the Indenture;  provided,
however, that any such interest not punctually paid or duly provided for shall be payable as
provided in the Indenture. Interest may, at the option of the Company, be paid either (i) by check mailed to the registered address of such Person (provided that the holder of Notes with an
aggregate principal amount in excess of $2,000,000 shall, at the written election of such holder, be paid by wire transfer of immediately available funds) or (ii) by transfer to an account
maintained by such Person located in the United States; provided, however, that payments to the
Depositary will be made by wire transfer of immediately available funds to the account of the Depositary or its nominee. 

        The
Company promises to pay interest on overdue principal and (to the extent that payment of such interest is enforceable under applicable law) interest at a rate borne by this Note plus
1% per annum. 

        Reference
is made to the further provisions of this Note set forth on the reverse hereof, including, without limitation, provisions giving the holder of this Note the right to convert
this Note into Common Stock of the Company on the terms and subject to the limitations referred to on the reverse hereof and as more fully specified in the Indenture. Such further provisions shall for
all purposes have the same effect as though fully set forth at this place. 

        This
Note shall be deemed to be a contract made under the laws of the State of New York, and for all purposes shall be construed in accordance with and governed by the laws of the State
of New York, without regard to conflict of laws provisions thereof. 

        This
Note shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been manually signed by the Trustee or a duly authorized
authenticating agent under the Indenture. 

A-2

 

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

	 	 	IMCLONE SYSTEMS INCORPORATED
	

 	
 	

By:	

	 	 	Name:	

	 	 	Title:	

	Attest:	
	 	 
	Name:	
	 	 
	Title:	
	 	 
	

Dated:	

	
 	

 

	 	 	 	 
	 	 	 	 
	TRUSTEE'S CERTIFICATE OF AUTHENTICATION	 
	

This is one of the Notes described in the within-named Indenture.	

 
	

THE BANK OF NEW YORK, as Trustee	

 
	

By:	
 	

 	

 
	 	 	
 Authorized Signatory

                                         
       , or	 
	

By:	
 	

 	

 
	 	 	
 As Authenticating Agent

(if different from Trustee)	 

A-3

   FORM OF REVERSE OF NOTE

IMCLONE SYSTEMS INCORPORATED

13/8% CONVERTIBLE NOTES DUE 2024  

        This Note is one of a duly authorized issue of Notes of the Company, designated as its 13/8% Convertible Notes due 2024 (herein called the "Notes")
all issued or to be issued under and pursuant to an Indenture dated as of May 7, 2004 (herein called the "Indenture"), between the Company and The Bank of New York, as trustee (herein called
the "Trustee"), to which Indenture and all indentures supplemental thereto reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities
thereunder of the Trustee, the Company and the holders of the Notes. 

        In
case an Event of Default (as defined in the Indenture) shall have occurred and be continuing, the principal of and accrued Interest (as defined in the Indenture) on all Notes may be
declared by either the Trustee or the holders of not less than 25% in aggregate principal amount of the Notes then outstanding, and upon said declaration shall become, due and payable, in the manner,
with the effect and subject to the conditions provided in the Indenture. 

        The
Indenture contains provisions permitting the Company and the Trustee, with the consent of the holders of not less than a majority in aggregate principal amount of the Notes at the
time outstanding, to execute supplemental indentures adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture or of any supplemental indenture or
modifying in any manner the rights of the holders of the Notes; provided, however, that no such supplemental indenture shall (i) extend the fixed
maturity of any Note, or reduce the rate or extend the time of payment of Interest thereon, or reduce the principal amount thereof or any amount payable upon redemption or repurchase thereof, or
change the obligation of the Company to repurchase any Note at the option of a Noteholder on a Repurchase Date in a manner adverse to the holders of Notes, or impair the right of any Noteholder to
institute suit for the payment thereof, or make the principal thereof or Interest thereon payable in any coin or currency other than that provided in the Notes, or change the obligation of the Company
to repurchase any Note upon the happening of a Designated Event (as defined in the Indenture) in a manner adverse to the holder of the Notes, or impair the right to convert the Notes into Common Stock
subject to the terms set forth in the Indenture, including Section 14.6 thereof, in each case, without the consent of the holder of each Note so affected or modify any provisions of
Section 10.2 or Section 6.7, except to increase any such percentage or to provide that certain other provisions of the Indenture cannot be modified or waived without the consent of the
holder of each Note so affected, or reduce the quorum or voting requirements set forth in Article Nine or (ii) reduce the aforesaid percentage of Notes, the holders of which are required to
consent to any such supplemental indenture, without the consent of the holders of all Notes then outstanding. Subject to the provisions of the Indenture, the holders of a majority in aggregate
principal amount of the Notes at the time outstanding may on behalf of the holders of all of the Notes waive any past Default or Event of Default under the Indenture and its consequences except a
default in the payment of Interest on, or the principal of, any of the Notes, or a failure by the Company to convert any Notes into Common Stock of the Company, or a default in the payment of the
redemption price pursuant to Article Three of the Indenture, a default in the payment of the repurchase price pursuant to Article Three of the Indenture or a default in respect of a covenant or
provisions of the Indenture which under Article Ten of the Indenture cannot be modified or amended without the consent of the holders of each or all Notes then outstanding or affected thereby. Any
such consent or waiver by the holder of this Note (unless revoked as provided in the Indenture) shall be conclusive and binding upon such holder and upon all future holders and owners of this Note and
any Notes which may be issued in exchange or substitution hereof, irrespective of whether or not any notation thereof is made upon this Note or such other Notes. 

A-4

 

        No
reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and Interest on this Note at the place, at the respective times, at the rate and in the coin or currency herein prescribed. 

        Interest
on the Notes shall be computed on the basis of a 360-day year of twelve 30-day months. 

        The
Notes are issuable in fully registered form, without coupons, in denominations of $1,000 principal amount and any integral multiple of $1,000. At the office or agency of the Company
referred to on the face hereof, and in the manner and subject to the limitations provided in the Indenture, without payment of any service charge but with payment of a sum sufficient to cover any tax,
assessment or other governmental charge that may be imposed in connection with any registration or exchange of Notes, Notes may be exchanged for a like aggregate principal amount of Notes of any other
authorized denominations. 

        At
any time on or after May 20, 2009 and prior to maturity, the Notes may be redeemed at the option of the Company, in whole or in part, upon mailing a notice of such redemption
not less than 30 days but not more than 60 days before the redemption date to the holders of Notes at their last registered addresses, all as provided in the Indenture, at a cash
redemption price equal to 100% of the principal amount of the Notes being redeemed and accrued and unpaid Interest, to, but excluding, the redemption date; provided that if the redemption date falls
after a record date and on or prior the corresponding interest payment date, then the Interest payable on such interest payment date shall be paid to the holders of record of such Notes on the
applicable record date instead of the holders surrendering such Notes for redemption on such date and the redemption price payable to the holders surrendering such Notes for redemption will be 100% of
the principal amount of such Notes. 

        The
Company may not give notice of any redemption of the Notes if a default in the payment of Interest on the Notes has occurred and is continuing. 

        The
Notes are not subject to redemption through the operation of any sinking fund. 

        If
a Designated Event occurs at any time prior to maturity of the Notes, the Company shall become obligated to purchase, at the option of the holder, all or any portion of the Notes held
by such holder, on a date (the "Designated Event Repurchase Date") specified by the Company that is at least twenty (20) Business Days (as defined in the Indenture) and no later than thirty
five (35) Business Days after notice thereof at a cash repurchase price of 100% of the principal amount, plus any accrued and unpaid Interest, on such Note up to, but excluding, the Designated
Event Repurchase Date; provided that if the repurchase date falls after a record date and on or prior the corresponding interest payment date, then the Interest payable on such interest payment date
shall be paid to the holders of record of such Notes on the applicable record date instead of the holders surrendering such Notes for repurchase on such date. The Notes will be redeemable in multiples
of $1,000 principal amount. The Company shall mail to all holders of record of the Notes a notice of the occurrence of a Designated Event and of the repurchase right arising as a result thereof on or
before the 10th day after the occurrence of such Designated Event. To exercise such right, a holder shall deliver to the Trustee (or other paying agent appointed by the Company) the Note with the form
entitled "Designated Event Repurchase Notice" on the reverse thereof duly completed, together with the Note, duly endorsed for transfer, at any time prior to the close of business on the date two
Business Days prior to the Designated Event Repurchase Date. 

        Subject
to the terms and conditions of the Indenture, the Company shall become obligated to purchase, at the option of the holder, all or any portion of the Notes held by such holder on
May 15 of 2009, 2014 and 2019 (each a "Repurchase Date") in whole multiples of $1,000 at a cash repurchase price of 100% of the principal amount, plus any accrued and unpaid Interest, on such
Note up to, but excluding, the Repurchase Date. To exercise such right, a holder shall deliver to the Company such 

A-5

 

Note
with the form entitled "Repurchase Notice" on the reverse thereof duly completed, together with the Note, duly endorsed for transfer, at any time from the opening of business on the date that is
20 Business Days prior to such Repurchase Date until the close of business on the date that is two Business Days prior to the Repurchase Date, and shall deliver the Notes to the Trustee (or other
paying agent appointed by the Company) as set forth in the Indenture. 

        Holders
have the right to withdraw any Designated Event Repurchase Notice or the Repurchase Notice, as the case may be, by delivering to the Trustee (or other paying agent appointed by
the Company) a written notice of withdrawal up to the close of business on the date that is two Business Days prior to the Designated Event Repurchase Date or the Repurchase Date, as the case may be,
all as provided in the Indenture. 

        If
money or cash, sufficient to pay the repurchase price of all Notes or portions thereof to be purchased as of the Designated Event Repurchase Date or the Repurchase Date, as the case
may be, is deposited with the Trustee (or other paying agent appointed by the Company), on the Designated Event Repurchase Date or the Repurchase Date, as the case may be, Interest will cease to
accrue on such Notes (or portions thereof) immediately after such Designated Event Repurchase Date or Repurchase Date, and the holder thereof shall have no other rights as such other than the right to
receive the repurchase price upon surrender of such Note. 

        Subject
to the occurrence of certain events and in compliance with the provisions of the Indenture, prior to the close of business on the Business Day immediately prior to the final
maturity date of the Notes, the holder hereof has the right, at its option, to convert each $1,000 principal amount of the Notes into 10.5613 shares of the Company's Common Stock (a conversion price
of approximately $94.69 per share), as such shares shall be constituted at the date of conversion and subject to adjustment from time to time as provided in the Indenture, upon surrender of this Note
with the form entitled "Conversion Notice" on the reverse thereof duly completed, to the Company at the office or agency of the Company maintained for that purpose in accordance with the terms of the
Indenture, or at the option of such holder, the Corporate Trust Office, and, unless the shares issuable on conversion are to be issued in the same name as this Note, duly endorsed by, or accompanied
by instruments of transfer in form satisfactory to the Company duly executed by, the holder or by his duly authorized attorney. The Company will notify the holder thereof of any event triggering the
right to convert the Notes as specified above in accordance with the Indenture. 

        No
adjustment in respect of Interest on any Note converted or dividends on any shares issued upon conversion of such Note will be made upon any conversion except as set forth in the next
sentence. If
this Note (or portion hereof) is surrendered for conversion during the period from the close of business on any record date for the payment of Interest to the corresponding interest payment date, this
Note (or portion hereof being converted) must be accompanied by payment, in immediately available funds or other funds acceptable to the Company, of an amount equal to the Interest otherwise payable
on such interest payment date on the principal amount being converted; provided that no such payment shall be required (1) if the Company has specified a redemption date that is after a record
date and prior to the next interest payment date, (2) if the Company has specified a Designated Event Repurchase Date that is during such period or (3) to the extent of any overdue
Interest, if any overdue Interest exists at the time of conversion with respect to such Note. 

        No
fractional shares will be issued upon any conversion, but an adjustment and payment in cash will be made, as provided in the Indenture, in respect of any fraction of a share which
would otherwise be issuable upon the surrender of any Note or Notes for conversion. A Note in respect of which a holder is exercising its right to require repurchase upon a Designated Event or
repurchase on a Repurchase Date may be converted only if such holder withdraws its election to exercise either such right in accordance with the terms of the Indenture. Any Notes called for
redemption, unless surrendered for conversion by the holders thereof on or before the close of business on the Business 

A-6

 

Day
preceding the date fixed for redemption, may be deemed to be redeemed from the holders of such Notes for an amount equal to the applicable redemption price, together with accrued but unpaid
Interest to (but excluding) the date fixed for redemption, by one or more investment banks or other purchasers who may agree with the Company (i) to purchase such Notes from the holders thereof
and convert them into shares of the Company's Common Stock and (ii) to make payment for such Notes as aforesaid to the Trustee in trust for the holders. 

        Upon
due presentment for registration of transfer of this Note at the office or agency of the Company maintained for that purpose in accordance with the terms of the Indenture, a new
Note or Notes of authorized denominations for an equal aggregate principal amount will be issued to the transferee in exchange thereof; subject to the limitations provided in the Indenture, without
charge except for any tax, assessment or other governmental charge imposed in connection therewith. 

        The
Company, the Trustee, any authenticating agent, any paying agent, any conversion agent and any Note registrar may deem and treat the registered holder hereof as the absolute owner of
this Note (whether or not this Note shall be overdue and notwithstanding any notation of ownership or other writing hereon made by anyone other than the Company or any Note registrar) for the purpose
of receiving payment hereof, or on account hereof, for the conversion hereof and for all other purposes, and neither the Company nor the Trustee nor any other authenticating agent nor any paying agent
nor other conversion agent nor any Note registrar shall be affected by any notice to the contrary. All payments made to or upon the order of such registered holder shall, to the extent of the sum or
sums paid, satisfy and discharge liability for monies payable on this Note. 

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

        Terms
used in this Note and defined in the Indenture are used herein as therein defined. 

A-7

 
ABBREVIATIONS  

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

	 	 	 	 	UNIF GIFT MIN ACT—

                                         
                  Custodian
	TEN COM-	 	as tenants in common	 	(Cust)
	 	 	 	 	                                        
                  

(Minor)
	TEN ENT-	 	as tenants by the entireties	 	 
	JT TEN-	 	as joint tenants with right of survivorship and not as tenants in common	 	Under Uniform Gifts to Minors Act

                                         
                 

(State)

ADDITIONAL
ABBREVIATIONS MAY ALSO BE USED

THOUGH NOT IN THE ABOVE LIST. 

A-8

CONVERSION NOTICE  

	TO:
	IMCLONE
SYSTEMS INCORPORATED

THE BANK OF NEW YORK 

        The
undersigned registered owner of this Note hereby irrevocably exercises the option to convert this Note, or the portion thereof (which is $1,000 or an integral multiple thereof) below
designated, into shares of Common Stock of ImClone Systems Incorporated in accordance with the terms of the Indenture referred to in this Note, and directs that the shares issuable and deliverable
upon such conversion, together with any check in payment for fractional shares and any Notes representing any unconverted principal amount hereof, be issued and delivered to the registered holder
hereof unless a different name has been indicated below. If shares or any portion of this Note not converted are to be issued in the name of a person other than the undersigned, the undersigned will
provide the appropriate information below and pay all transfer taxes payable with respect thereto. Any amount required to be paid by the undersigned on account of interest accompanies this Note. 

Dated:
                                        

	 	 	 	 	

	 	 	 	 	 	 	 
	 	 	 	 	
 Signature(s)
	 	 	 	 	 	 	 
	 	 	 	 	Signature(s) must be guaranteed by an "eligible guarantor institution" meeting the requirements of the Note registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program
("STAMP") or such other "signature guarantee program" as may be determined by the Note registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.
	 	 	 	 	 	 	 
	 	 	 	 	
 Signature Guarantee
	 	 	 	 	 	 	 
	        Fill in the registration of shares of Common Stock if to be issued, and Notes if to be delivered, other than to and in the name of the registered
holder:
	 	 	 	 	 	 	 
	
 (Name)	 	 	 	 
	 	 	 	 	 	 	 
	
 (Street Address)	 	 	 	 
	 	 	 	 	 	 	 
	
 (City, State and Zip Code)	 	 	 	 
	 	 	 	 	 	 	 
	
 Please print name and address	 	 	 	 
	 	 	 	 	 	 	 
	Principal amount to be converted

(if less than all):	 	 	 	 
	 	 	 	 	 	 	 
	$	 	 
	 	 	 	 
	 	 	 	 	 	 	 
	Social Security or Other Taxpayer

Identification Number:	 	 	 	 
	 	 	 	 	 	 	 
	
	 	 	 	 

DESIGNATED EVENT REPURCHASE NOTICE  

	TO:
	IMCLONE
SYSTEMS INCORPORATED 

        The
undersigned registered owner of this Note hereby irrevocably acknowledges receipt of a notice from ImClone Systems Incorporated (the "Company") regarding the right of holders to
elect to require the Company to repurchase the Notes upon the occurrence of a Designated Event with respect to the Company and requests and instructs the Company to repay the entire principal amount
of this Note, or the portion thereof (which is $1,000 or an integral multiple thereof) below designated, in accordance with the terms of the Indenture at the price of 100% of such entire principal
amount or portion thereof, together with accrued Interest to, but excluding, the Designated Event Repurchase Date, to the registered holder hereof. Capitalized terms used herein but not defined shall
have the meanings ascribed to such terms in the Indenture. The Notes shall be repurchased by the Company as of the portion thereof, together with accrued Interest to, but excluding, the Designated
Event Repurchase Date pursuant to the terms and conditions specified in the Indenture. 

Dated:
                                        

	 	 	
	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	
 Signature(s)
	
	 	 	 	 	 	 

	 	 	 	 	NOTICE: The above signatures of the holder(s) hereof must correspond with the name as written upon the face of the Note in every particular without alteration or enlargement or any change whatever.
	

 	
 	

 	
 	

Principal amount to be repaid (if less than all):
	 	 	 	 	 	 	 
	 	 	 	 	$	 	 

	 	 	 	 	 	 	 
	 	 	 	 	
 Social Security or Other

Taxpayer Identification Number

REPURCHASE NOTICE  

	TO:
	IMCLONE
SYSTEMS INCORPORATED 

        The
undersigned registered owner of this Note hereby irrevocably acknowledges receipt of a notice from ImClone Systems Incorporated (the "Company") regarding the right of holders to
elect to require the Company to repurchase the Notes and requests and instructs the Company to repay the entire principal amount of this Note, or the portion thereof (which is $1,000 or an integral
multiple thereof) below designated, in accordance with the terms of the Indenture at the price of 100% of such entire principal amount or portion thereof, together with accrued Interest to, but
excluding, the Repurchase Date, to the registered holder hereof. Capitalized terms used herein but not defined shall have the meanings ascribed to such terms in the Indenture. The Notes shall be
repurchased by the Company as of the Repurchase Date pursuant to the terms and conditions specified in the Indenture. 

Dated:
                                        

	 	 	 	 	

	 	 	 	 	 	 	 
	 	 	 	 	
 Signature(s)
	
	 	 	 	 	 	 

	 	 	 	 	NOTICE: The above signatures of the holder(s) hereof must correspond with the name as written upon the face of the Note in every particular without alteration or enlargement or any change whatever.
	

 	
 	

 	
 	

Principal amount to be repaid (if less than all):
	 	 	 	 	 	 	 
	 	 	 	 	$	 	 

	 	 	 	 	 	 	 
	 	 	 	 	
 Social Security or Other

Taxpayer Identification Number

 
 

ASSIGNMENT    
    

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

        In
connection with any transfer of the Note prior to the expiration of the holding period applicable to sales thereof under Rule 144(k) under the Securities Act (or any successor
provision) (other than any transfer pursuant to a registration statement that has been declared effective under the Securities Act), the undersigned confirms that such Note is being transferred: 

	o
	To
ImClone Systems Incorporated or a subsidiary thereof; or

	o
	To
a "qualified institutional buyer" in compliance with Rule 144A under the Securities Act of 1933, as amended; or

	o
	Pursuant
to a Registration Statement which has been declared effective under the Securities Act of 1933, as amended, and which continues to
be effective at the time of transfer; or

	o
	Pursuant
to and in compliance with Rule 144 under the Securities Act of 1933, as amended; 

and unless the Note has been transferred to ImClone Systems Incorporated or a subsidiary thereof, the undersigned confirms that such Note is not being transferred to an
"affiliate" of the Company as defined in Rule 144 under the Securities Act of 1933, as amended. 

        Unless
one of the boxes is checked, the Trustee will refuse to register any of the Notes evidenced by this certificate in the name of any person other than the registered holder thereof. 

	 
	 	 
	 	 

	Dated:	 	 	 	 
	 	 	
	 	 
	

 	
 	

 	
 	

	

 	
 	

 	
 	

 Signature(s)
	

 	
 	

 	
 	

Signature(s) must be guaranteed by an "eligible guarantor institution" meeting the requirements of the Note registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program ("STAMP") or such other
"signature guarantee program" as may be determined by the Note registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.
	

 	
 	

 	
 	

 Signature Guarantee

NOTICE:
The signature on the Conversion Notice, the Designated Event Repurchase Notice, the Repurchase Notice or the Assignment must correspond with the name as written upon the face of the Note in
every particular without alteration or enlargement or any change whatever 

QuickLinks

TABLE OF CONTENTS

INDENTURE

W I T N E S S E T H

ARTICLE ONE DEFINITIONS

ARTICLE TWO ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF NOTES

ARTICLE THREE REDEMPTION AND REPURCHASE OF NOTES

ARTICLE FOUR PARTICULAR COVENANTS OF THE COMPANY

ARTICLE FIVE NOTEHOLDERS' LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

ARTICLE SIX REMEDIES OF THE TRUSTEE AND NOTEHOLDERS ON AN EVENT OF DEFAULT

ARTICLE SEVEN THE TRUSTEE

ARTICLE EIGHT THE NOTEHOLDERS

ARTICLE NINE MEETINGS OF NOTEHOLDERS

ARTICLE TEN SUPPLEMENTAL INDENTURES

ARTICLE ELEVEN CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

ARTICLE TWELVE SATISFACTION AND DISCHARGE OF INDENTURE

ARTICLE THIRTEEN IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

ARTICLE FOURTEEN CONVERSION OF NOTES

ARTICLE FIFTEEN MISCELLANEOUS PROVISIONS

EXHIBIT A

ASSIGNMENT

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